MIRA INFORM REPORT

Report No. :	304610
Report Date :	24.01.2015

IDENTIFICATION DETAILS

Name :	SHRI SARA POLYMERS PRIVATE LIMITED

Registered Office :	No.32, Block B, Swamy Street, Muthupalaniyappa Nagar, Nagalkeni, Chrompet Chennai - 600044, Tamilnadu

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	21.02.2006

Com. Reg. No.:	18-058937

Capital Investment / Paid-up Capital :	Rs.2.500 Millions

CIN No.: [Company Identification No.]	U72200TN2006PTC058937

TAN No.: [Tax Deduction & Collection Account No.]	CHES25280D

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	Private Limited Liability Company

Line of Business :	Trader and Importer of dyestuffs, adhesives and polymers items.

No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 70000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Ms. Bharti
Designation :	Account Manager
Contact No.:	91-9566141114
Date :	22.01.2015

LOCATIONS

Registered Office / Head Office:	No.32, Block B, Swamy Street, Muthupalaniyappa Nagar, Nagalkeni, Chrompet Chennai - 600044, Tamilnadu, India
Tel. No.:	91-44-22383379,22383816,
Mobile :	91-9994429999 (Mr. K. Raghu) 91-9994488822 (Mr. P. Jayasankar)
Fax No.:	91-44-22383816
E-Mail :	sales@sarapolymers.com
Website :	www.sarapolymers.com

Branch Office 1:	No.11/10, 2^nd Cross Behind BPL, Bommanahalli, Bangalore – 560068, Karanataka, India.
Tel. No.:	91-80-42234914

Branch Office 2 :	D/No.283, 60 Feet Road, T.S.K. Nagar, Dharapuram Road, Thiruppur Town, Thiruppur – 641604, Tamil Nadu, India
Tel. No.:	91-421-2425600.

DIRECTORS

As on 29.09.2014

Name :	Ms. Gayathri Raghu
Designation :	Director
Address :	Vinayaka, Flat 3C, 34, Bakthavatchalam Salai, Mylapore, Chennai – 600 004, Tamil Nadu, India
Date of Birth/ Age :	28.10.1972
Date of Appointment :	21.02.2006
DIN No.:	01718707

Name :	Mr. Jayasankar Palani
Designation :	Director
Address :	No. 156 C.N.A. Road, Pudur, Vaniyambadi – 635 751, Tamil Nadu, India
Date of Birth/ Age :	15.04.1968
Date of Appointment :	21.02.2006
DIN No.:	01757454

Name :	Ms. Radhika Ramesh
Designation :	Director
Address :	Flat No.SF 3, Sreyas Krishna, Sriram Nagar, North Street, Alwarpet, Chennai 600 018, Tamil Nadu, India
Date of Birth/ Age :	17.11.1967
Date of Appointment :	01.03.2008
DIN No.:	01838777

KEY EXECUTIVES

Name :	Ms. Bharti
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2014

Names of Shareholders	No. of Shares	%age holding
Jayasankar M. Palani	12500	50.00
Gayathri K. Raghu	8750	35.00
Radhika K. Ramesh	3750	15.00
Total	25000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of dyestuffs, adhesives and polymers items.

Brand Names :	Not Divulged

Agencies Held :	Not Divulged

Exports :	Not Divulged

Imports :
Products :	Finished Goods
Countries :	Germany Malaysia

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	BASF India Limited, Chennai, Tamilnadu, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Wholesalers
Retailers
End Users

Reference :	S L Lumax Limited, Chennai, Tamilnadu, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

25 (Approximately)

Bankers :

Bank Name	State Bank of India
Branch	Leather International Branch, MVJ Towers, 177/1, P. H. Road, Kilpauk, Chennai – 600010, Tamilnadu, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
From banks - Vehicle Loan a/c	0.587	0.085
LESS: Current Maturities transferred to `Other Current Liabilities	(0.235)	(0.085)
Short-term borrowings
Loans repayable on demand From banks	2.609	0.000
Total	2.961	0.000
NOTE: Long-term Borrowings The company has availed term loan for acquiring vehicles (car) with Kotak Mahendra Prime Limited creating charge on the vehicles, which are repayable in 36 months. Term Loan Rs.0.600 Million - repayable in 36 EMIs commencing from 04.03.2014 Short-term borrowings The Company has availed Working Capital Loans in the form of OCC limits with State Bank of India, Leather Intneranational Branch, Chennai against the hypothecation of stock and debtors of the Company along with Corporate Guarantee given by Kanna Chemie Private Limited

Auditors :
Name :	V. Krishnan and Company Chartered Accountants
Address :	NO.27/A Teacher's Colony, Khaderpet, Vaniyambadi – 635751, Tamil Nadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFV3215D

Memberships :	--

Collaborators :	--

Associates :	Kanna Chemie Private Limited (KCPL) – a Private Limited Company owned by the relatives of the directors Mrs. Gayathri Raghu and Radhika Ramesh. J.K. Dyes and Chemicals (JKDC) – a partnership firm in which Mrs. K. Gayathri RAGHU, the director of the Company has been holding 30% profit sharing ratio.

CAPITAL STRUCTURE

As on 31.03.2014

No. of Shares	Type	Value	Amount

25000	Equity Shares	Rs.100/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

25000	Equity Shares	Rs.100/- each	Rs.2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.500	2.500	2.500
(b) Reserves & Surplus	22.964	17.918	13.468
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	25.464	20.418	15.968

(3) Non-Current Liabilities
(a) long-term borrowings	9.003	11.458	11.481
(b) Deferred tax liabilities (Net)	0.030	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	9.033	11.458	11.481

(4) Current Liabilities
(a) Short term borrowings	2.609	0.000	0.221
(b) Trade payables	11.565	9.875	5.767
(c) Other current liabilities	0.767	0.271	0.586
(d) Short-term provisions	0.464	0.342	0.281
Total Current Liabilities (4)	15.405	10.488	6.855

TOTAL	49.902	42.364	34.304

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.816	0.543	0.537
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.016	0.004
(d) Long-term Loan and Advances	0.265	0.291	0.291
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	2.081	0.850	0.832

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.146	9.933	5.768
(c) Trade receivables	36.408	28.053	25.671
(d) Cash and cash equivalents	0.642	3.456	1.798
(e) Short-term loans and advances	0.625	0.072	0.235
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	47.821	41.514	33.472

TOTAL	49.902	42.364	34.304

PROFIT & LOSS ACCOUNT

	SALES
	Income	181.082	156.352	130.959
	Other Income	0.052	0.111	0.015
	TOTAL (A)	181.134	156.463	130.974

Less	EXPENSES
	Purchases of Stock-in-Trade	148.306	131.990	98.763
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(0.212)	(4.165)	3.018
	Employees benefits expense	6.937	5.270	3.702
	Remuneration to Directors	0.600	0.600	0.640
	Other expenses	17.211	15.534	17.862
	TOTAL (B)	172.842	149.229	123.985

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	8.292	7.234	6.989

Less	FINANCIAL EXPENSES (D)	0.798	0.642	0.606

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	7.494	6.592	6.383

Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.130	0.157	0.199

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	7.364	6.435	6.184

Less	TAX (I)	2.318	1.985	1.982

	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	5.046	4.450	4.202

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	17.918	13.467	9.265

	Balance Carried to the B/S	22.964	17.917	13.467

	Earnings / (Loss) Per Share (Rs.)	201.85	178.00	168.07

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.79	2.85	3.21

Operating Profit Margin (PBIDT/Sales)	(%)	4.58	4.63	5.34

Return on Total Assets (PBT/Total Assets}	(%)	14.76	15.20	18.03

Return on Investment (ROI) (PBT/Networth)		0.29	0.32	0.39

Debt Equity Ratio (Total Debt /Networth)		0.46	0.56	0.73

Current Ratio (Current Asset/Current Liability)		3.10	3.96	4.88

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	2.500	2.500	2.500
Reserves & Surplus	13.468	17.918	22.964
Net worth	15.968	20.418	25.464

long-term borrowings	11.481	11.458	9.003
Short term borrowings	0.221	0.000	2.609
Total borrowings	11.702	11.458	11.612
Debt/Equity ratio	0.733	0.561	0.456

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	130.959	156.352	181.082
		19.390	15.817

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	130.959	156.352	181.082
Profit	4.202	4.450	5.046
	3.21%	2.85%	2.79%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PERFORMANCE:

The total revenue of the company during the year was Rs.181.133 Millions as against Rs. 156.463 Millions in the immediate preceding year 2012-13. The operations of the company resulted in a net profit of Rs. 5.046 Millions in the year as against Rs. 4.450 Millions in the immediate preceding year 2012-13.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Adance from related parties	8.651	11.458
Total	8.651	11.458

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10055288	14/12/2012 *	14,000,000.00	STATE BANK OF INDIA	LEATHER & INTERNATIONAL BRANCH, MVJ TOWERS, 177/1 POONAMALLEE HIGH ROAD, CHENNAI, TAMIL NADU - 600010, INDIA	B66804998

* Date of charge modification

FIXED ASSETS

Office Equipments
Computers
Furnitures and Fixtures
Vehicle

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.50
UK Pound	1	Rs.92.16
Euro	1	Rs.69.62

INFORMATION DETAILS

Information Gathered by :	DIP

Analysis Done by :	DIV

Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

INDEX OF CHARGES

Unit