MIRA INFORM REPORT

Report Date :

22^nd June 2006

IDENTIFICATION DETAILS

Name :	DAURALA SUGAR WORKS - DIVISION OF –DCM SHRIRAM INDUSTRIES LIMITED
Registered Office :	Kanchenjunga Building, 5^th Floor, 18, Barakhamba Road, New Delhi – 110 001, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	21.02.1989
Com. Reg. No.:	55-35140
CIN No.: [Company Identification No.]	U74899DL1989PLC035140
TAN No.: (Tax Deduction & Collection Account No.)	DELD06462B DELD06289D
PAN No.: (Permanent Account No.)	AAACD0204C AAACD0229M
Legal Form :	It is a public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Engaged in manufacturing of chemicals, sugar and textile products.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 6000000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. The company is making satisfactory progress in its performance. Directors are experienced and resourceful industrialists. Trade relations are reported as fair. Payments are reported as slow, but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Kanchenjunga Building, 5^th Floor, 18, Barakhamba Road, New Delhi – 110 001, India
Tel. No.:	91-11-2332 1413 (10 Lines)
Fax No.:	91-11-2331 0765 / 2331 5424
E-Mail :	dsil@dcmsr.com
Website :	http://www.dauralaorganics.com, http://www.dcmsr.com
Divisional offices:	Ø Kanchenjunga Building, 18, Barakhamba Road, New Delhi - 110 001 Tel. No. 91-11-2332 1413 (10 Lines) Fax No. 91-11-2335 0765 / 2331 5424 E-Mail : sugarsud@dcmsr.com Ø 1-89, Himalaya House, 23, Kasturba Gandhi Marg, New Delhi - 110 001 Tel. No. 91-11-2331 8609 Fax No. 91-11-2331 8605 E-Mail : doldelhi@del2.vsnl.net.in Ø Akashdeep Building, 5^th Floor, 26A, Barakhamba Road, New Delhi - 110 001 Tel. No. 91-11-2331 2267 Fax No. 91-11-2331 3494 E Mail : shrirayn@del2.vsnl.net.in Ø 204-205, Ashoka Estate Building, Barakhamba Road, New Delhi - 110 001 Tel. No. 91-11-2373 9311 Fax No. 91-11-2373 9316
Tel. No.:
Regional offices:	Ø Sir Vithaldas Chambers, 6^th Floor, 16, Mumbai Samachar Marg, Mumbai - 400 023 Tel. No. 91-22-22041455 Fax No. 91-22-22041570 Ø 26A, Watgunge Street, Kolkata - 700 023, West Bengal Tel. No. 91-33-22459574 Fax No. 91-33-2459 0508
Corporate Office :	Kanchenjunga Building, 18, Barakhamba Road, New Delhi - 110 001, India
Tel. No.:	91-11-2332 1413 (10 Lines)
Fax No.:	91-11-2335 0765 / 331 5424
E-Mail :	dsil@dcmsr.com
Website :	http://www.dauralaorganics.com, http://www.dcmsr.com
Factory 1 :	DCM SHRIRAM TEXTILES HRM Premises, Dasna Ghaziabad, Uttar Pradesh DAURALA ORGANICS Daurala, Meerut District - 250221, Uttar Pradesh Tel. No. 91-121-2588096 Fax No. 91-123-2788131 Website : http://www.dauralaorganics.com SHRIRAM RAYONS Shriram Nagar, Kota, Rajasthan - 324 004 Tel. No. 91-744-2424401 Fax No. 91-744-2424403 E Mail : srryons@jp1.dot.net.in INDITAL TINTORIA LIMITED Matsya Industrial Area, District Alwar, Rajasthan Tel. No. 91-144-2281053 / 2811053 Fax No. 91-144-2281253 E Mail : srrayons@jp1.dot.net.in DCM REMY LIMITED Daurala, Meerut District, Uttar Pradesh Tel. No. 91-121-2288533 Fax No. 91-1237-288511 Daurala Sugar Works, Daurala, Meerut District - 250221, Uttar Pradesh 91-1237-288096 – 99 91-1237-288131 dsw@dcmsr.com

DIRECTORS

Name :	Shri Tilak Dhar
Designation :	Chairman & Managing Director
Name :	Shri Alok B. Shriram
Designation :	Dy. Managing Director
Name :	Shri S.D. Nigam
Designation :	Whole - Time Director
Name :	Shri Madhav B. Shriram
Designation :	Whole - Time Director
Name :	Shri Atam Parkash
Designation :	Directors
Name :	Shri P.R. Khanna
Designation :	Directors
Name :	Dr. V.L. Dutt
Designation :	Directors
Name :	Shri K.K. Mudgil
Designation :	UTI Nominee
Name :	Shri S.P.Arora
Designation :	IFCI Nominee
Name :	Shri B. P. Khandelwal
Designation :	Company Secretary
Name :	Shri D.C. Mittal
Designation :	President
Name :	Shri G. Kumar
Designation :	Chief Operating Officer (Sugar)
Name :	Shri Anil Gujral
Designation :	Chief Operating Officer (Chemicals & Alcohol)
Name :	Shri V.K-Jhingon
Designation :	Vice President and Resident Head (Rayons)
Name :	Shri N.K. Jain
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	4.226	30.78 %
FIs, Banks & Mutual Funds	2.855	20.79 %
Others (public)	6.649	48.43 %
TOTAL	13.730	100.00 %

BUSINESS DETAILS

Line of Business :

Engaged in manufacturing of chemicals, sugar and textile products.

Products :

ITC Code	17.01
Product Descriptions	Cane Sugar

ITC Code	59.02
Product Descriptions	Tyre Cord Fabric

ITC Code	22.08
Product Descriptions	Undenatured Ethyl Alcohol

ITC Code	2207.10
Product Descriptions	Ethyl Alcohol Rectified Spirit

Exports to :

Europe and USA.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Sugar	Tonnes	8000	155156
Alcohol	K.L.	45000	30636
Fine Chemicals	Tonnes	13114	5784
Industrial Fibres	Tonnes	15700	7000
Carbon-di-sulphide	Tonnes	15	901
Anhydrous Sodium Sulphate	Tonnes	7700	6090
Textiles	Looms Nos.	--	--

GENERAL INFORMATION

Suppliers :

Ø Apex Enterprises

Ø Amit Offset Works

Ø Atul Rubbers Private Limited.

Ø Bhatia Metals

Ø Bright Enterprises

Ø DKB Engg. Works

Ø Dashmesh Auto Engineers

Ø Grover & Company

Ø Hind Soka Enterprises

Ø Hindustan Auto Electric Work

Ø Indana Rubber Industries

Ø JM Engg. Works

Ø Jugnu Electric Works

Ø Kota Electronics

Ø Kota Glass Works

Ø Mittal Industries

Ø Nacones Private Limited

Ø NK Paper Tube Industries

Ø New Shakti Rewinder

Ø NSP Tech Services

Ø Om Gases & Chemicals

Ø PL Engg. Works

Ø Punjab Electrical Industries

Ø Pentagon Turbines Private Limited

Ø Reliable Chemical Industries

Ø Universal Stores Supplying Co.

Ø Vikas Pumps & Projects

Ø CNV Engineering Private Limited.

Ø Flexibles, Flow Chem Industries

Ø GVT Engg. (I) Private Limited.

Ø Maharani Industrial Corporation

Ø Mono Industries, N.D. Enterprises

Ø Pap-Flon Engineering Co.

Ø Pap-Flon Enterprise Pawan Brothers

Ø Shefa Engineers Private Limited.

Ø Super Scientific Works Private Limited.

No. of Employees :

2408

Bankers :

Ø State Bank of India

Ø Punjab National Bank

Ø Oriental Bank of Commerce

Ø State Bank of Bikaner & Jaipur

Ø Punjab &Sind Bank

Ø The United Western Bank Limited

Ø The Hongkong and Shanghai Banking Corporation Limited

Ø Moradabad Zila Sahkari Bank Limited

Ø Meerut Zila Sahkari Bank Limited.

Ø Ghaziabad Zila Sahkari Bank Limited

Ø Saharanpur Zila Sahkari Bank Limited.

Facilities :

Secured Loans	31.03.2004 [18 Months]
Debentures
Principal amount-Gross	319.278
Interest accrued and due	--
Advance subscription for debentures
Banks
Cash Credits	1398.594
Terms Loans	141.342
Others	652.562
Interest accrued and due	--
Hire purchase liabilities	2.504
Total	2514.280
Unsecured Loans
Deposits :-
Fixed	34.198
Others	34.662
Short term loans and advances from other than banks	--
Other loans and advances from other than banks	--
Interest accrued and due	--
Total	68.860

Banking Relations :	Satisfactory
Auditors :	A.F. Ferguson & Company Chartered Accountants New Delhi
Subsidiaries :	Ø Indital Tintoria Limited Ø DCM Shriram Leasing & Finance Limited Ø DCM Shriram International B V Ø Hindon River Mills Limited
Associates:	Ø DCM Hyundai Limited Ø Daurala Organics Limited Ø Daurala Foods & Beverages Private Limited
MEMBERSHIPS:	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
6,50,00,000	Equity shares	Rs. 10 each	Rs. 650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,37,30,237	Equity shares	Rs. 10 each	Rs. 137.302 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005 (12 Months)	31.03.2004 (18 Months)	30.09.2002 [18 Months]
SHAREHOLDERS FUNDS
1] Share Capital		137.302	137.302	137.302
2] Share Application Money		15.682	0.000	0.000
3] Reserves & Surplus		1462.315	1463.855	1622.784
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1615.299	1601.157	1760.086
LOAN FUNDS
1] Secured Loans		2514.280	2511.835	2374.645
2] Unsecured Loans		68.860	61.061	104.447
TOTAL BORROWING		2583.140	2572.896	2479.092
DEFERRED TAX LIABILITIES		283.972	168.695	132.703
TOTAL		4482.411	4342.748	4371.881
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1951.903	1340.708	1435.961
Capital work-in-progress		155.874	248.570	252.263
INVESTMENT		44.815	391.805	465.235
DEFERREX TAX ASSETS		152.094	127.050	222.758
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2301.389	2015.825	1231.470
	Sundry Debtors	444.798	451.036	380.466
	Cash & Bank Balances	272.969	246.910	201.999
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	241.981	564.026	704.204
Total Current Assets		3261.137	3277.797	2518.139
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	976.037	941.786	579.436
	Provisions	117.157	114.669	64.819
Total Current Liabilities		1093.194	1056.455	644.255
Net Current Assets		2167.943	2221.342	1873.884
MISCELLANEOUS EXPENSES		9.782	13.273	121.780
TOTAL		4482.411	4342.748	4371.881

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004 (18 Months)	30.09.2002 [18 Months]
Sales Turnover [including other income]	5549.643	6153.247	5229.285
Profit/(Loss) Before Tax	359.736	147.563	28.980
Provision for Taxation	111.345	116.170	4.427
Profit/(Loss) After Tax	248.391	31.393	24.553
Export Value	1317.275	1627.006	1097.422
Import Value	437.186	490.921	457.723
Total Expenditure	5211.067	5926.902	5200.305

SUMMARISED RESULTS

PARTICULARS	31.03.2006
Type	Full Year
Sales Turnover	7146.400
Other Income	46.400
Total Income	7192.800
Total Expenditure	6364.600
Operating Profit	828.200
Interest	215.300
Gross Profit	612.900
Depreciation	119.300
Tax	98.600
Reported PAT	290.900
Dividend (%)	100.000

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004 (18 Months)	30.09.2002 (18 Months)
Debt Equity Ratio	2.50	2.50	2.49
Long Term Debt Equity Ratio	1.25	1.41	1.36
Current Ratio	1.31	1.46	1.42
TURNOVER RATIOS
Fixed Assets	2.51	2.62	2.61
Inventory	3.06	3.09	3.28
Debtors	14.74	12.08	11.87
Interest Cover Ratio	2.48	1.29	1.11
Operating Profit Margin (%)	10.25	10.01	10.81
Profit Before Interest and Tax Margin (%)	9.14	8.81	9.49
Cash Profit Margin (%)	4.87	1.62	2.11
Adjusted Net Profit Margin (%)	3.76	0.42	0.79
Return on Capital Employed (%)	16.78	12.75	12.75
Return on Net Worth (%)	24.31	2.07	3.62

STOCK PRICES

Face Value	Rs.10/-
High	Rs.105.00/-
Low	Rs.92.50/-

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

Owned assets, Land, Buildings, Plant and machinery, Furniture and fixtures, Vehicles,

Assets taken on hire purchase, Vehicles

AMALGAMATION & FINANCIAL RESTRUCTURING

A Scheme u/s 3917 394 of the Companies Act, 1956 for amalgamation of Daurala Organics Ltd. (DOL), a promoted company, with the Company effective from 1 .1 .2005 and financial restructuring was approved by the shareholders in the Court Convened meeting held on 13.5.2005. The Directors are happy to inform that the Hon'ble Delhi High Court has approved the Scheme by its Order dated 13.9.2005 and the Scheme has become effective from 1.1.2005.

The operations of DOL have synergy with the Chemical operations of the Company. The amalgamation will enable rationalising and streamlining of management, businesses and finances and will eliminate duplication of work to common advantage. The Daurala Organics operations will form a separate Unit of the Company. These changes should help in enhancing shareholder value and future profitability. As per the Scheme, the shareholders of DOL are being allotted equity shares in the ratio of 1 fully paid equity share of Rs.10 in the Company for every 10 equity shares of Rs.10 each held in DOL. With this the paid up share capital of the Company shall stand increased to Rs.153.0 millions from Rs.137.3 millions Surplus value of the assets over liabilities transferred from DOL of Rs.141.1 millions have been credited to the 'Amalgamation Reserve' and investments in/ loans to promoted companies of Rs.232.5 millions and Rs.126.6 millions respectively totalling Rs.359.1 millions have been provided for out of Share Premium Account.

FINANCIAL RESULTS

The improvement in the operating results continued during the year under review as will be seen from the financial results. The turnover including other income was Rs.5550 million. compared to Rs.6150 millions in the previous period of 18 months, a 35% increase on annualised basis. The gross profit at Rs.410 millions compared to Rs.320 millions in the previous period is higher by 95% on annualised basis, the net profit at Rs.250 millions is significantly higher than the figure of Rs.3 cr in the previous period. In view of the substantial commitments to be met on account of servicing of long term debt as per the terms of restructuring put by the Financial Institutions and the need for preserving resources to strengthen the Company's finances, your Directors have not recommended any dividend for the year under review.

OPERATIONS

Daurala Complex

Sugar

The domestic sugar production this year was significantly affected due to the drought situation in some of the cane growing regions of the Country. As a result, the excessive inventory with the industry during the previous few years was normalised, and the domestic market stabilised and improved during the later part of the year. To maintain stability, Government encouraged import of raw sugar against advanced license with an obligation to export the same in subsequent years. During the year, cane crushing at 1.42 millions MT and sugar production at 0.148 millions MT at Daurala were the highest achieved. This was possible due to steps taken to improve the productivity in the fields and in the factory. Recovery was however, slightly lower due to early start of crushing and agro climatic conditions. On the cane price front, the Supreme Court reversed the High Court Order preventing the State Government from announcing the State Advised Price (SAP) and consequently the Company discharged the liability of additional cane price in line with the SAP for the years 1996-97, 2002-03 and 2003-04. A project for enhancing cane crushing capacity from 8000 TCD to 12000 TCD along with modernisation of the sugar plant and power house is in progress. AlcoholsOn the whole, the scenario of alcohol business was positive and the overall profitability was better during the year. Due to decline in sugar and molasses production, the prices of molasses and alcohol improved significantly. Anhydrous Alcohol supply was hampered due to the refusal by the Oil companies to accept the higher alcohol price. The situation should improve this year.

Chemicals

This year saw volatility in prices of raw materials on the one hand and intense international competition in both our products and those of some of our major customers. This affected sales and profitability. Various initiatives are being taken to sustain the profitability through cost reduction, product mix changes and through new product development etc.

Daurala Organics

The Unit produces and sells fine chemicals to the bulk drugs and agro chemical industries. It is continuing to consolidate itself not only domestically but also internationally. Increase in raw material prices, mainly of those items whose prices are linked to those of crude oil, pressure on selling prices due to competition and lowering of import duties affected margins. Efforts to identify growth opportunities through expansion and diversification into products and processes which are synergetic with existing operations is an ongoing process.

Shriram Rayons

Rayon

There was consistent growth in the performance of rayon operations. Rayon capacity was expanded by 6% during the year. Focus on cost reduction, operational efficiencies and energy conservation coupled with a stronger Euro enabled the Unit to achieve better results. Exports continue to grow and was 15% higher on an annualised basis comparing to previous period.

As energy costs are becoming a major area of concern, the Unit is exploring various alternate options to ensure a more cost effective energy supply. The Unit has received the award for highest exports from Synthetics and Rayon Export Promotion Council for the year 2003-04.

Nylon

Nylon business improved as a result of growth in the automobile sector and the resultant increase in demand for tyres. However, entry of new players in the market and cheaper import are putting pressure on sales volume.

PROMOTED COMPANIES

DCM Hyundai Ltd.

The Company continues to operate on a modest scale. The diversification efforts of the previous year have succeeded in establishing a product line of Special Containers and making regular supply. The dues of the working capital banks is being paid off on OTS basis with substantial relief. Efforts are continuing to evolve a mutually acceptable revival plan.

Others

Daurala Foods & Beverages Pvt. Limited operations were maintained at a modest level. Efforts made to increase sale of Company's brands showed encouraging results. The Company continued to earn an operating profit. DCM Shriram Leasing & Finance Limited concentrated on recoveries of dues with some success.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Company's business comprises of sugar, chemicals, alcohol and rayon with manufacturing facilities at Daurala, (UP.) and Kota, (Rajasthan). The performance of each segment during the year and the financials have been covered in the Directors' Report. Industry structure and competitive scenario for various products are covered below: Sugar While the performance of the Company's sugar business continues to be satisfactory, the industry is enmeshed in State and Central Government policies and controls, which have a bearing on the industry as a whole as also its constituent units. During the year some important steps taken by the Central Government enabled the industry to tide-over the adverse situation that could have arisen in the event of unmitigated imports and the consequent destabilization of the sugar market. As a result industry inventories have normalized from the huge surplus of the last few years and the sugar market is now satisfactory. On the sugar cane front the State Government's policies are going through a flux due to the co-existence of a delicensed industry and the authority of the State Government to allocate cane to individual factories. The introduction of an incentive scheme by the Uttar Pradesh Government for creation of new capacity with significant barriers of entry for smaller groups is creating a lot of stress on the issue of cane area reservation, for such units in particular. Interactions are taking place at various levels to evolve an equitable methodology for reservation of cane areas on factory-wise basis. The decision of the Supreme Court over ruling the High Court Order now enables State Governments to fix cane price. This will require the State Governments to evolve a methodology to arrive at a fair price on an year to year basis keeping in line the various interests and imperatives including the sugar prices, if the industry is to be healthy. Developments on the international sugar front seem to indicate that subsidies in developed countries may progressively reduce whereby international prices of sugar may firm up. This would have positive implications for the sugar industry in countries that do not have such subsidies, including India.

Alcohol

The scenario for the alcohol business continues to remain positive, in particular keeping in mind the increased demand expected from the Oil companies for Anhydrous Alcohol for admixing with petrol. Arising out of this development various sugar factories are setting up captive distilleries thereby reducing the molasses availability in the market. Capacity utilization will vary depending upon the relative growth of molasses production and the increase in captive consumption thereof by sugar units.

Fine Chemicals

The chemical business has been affected by the surge in prices of raw materials and the increase in competitiveness of developing countries. This has resulted in shifting of production to developing countries. Given that the developing countries constitute a major market by the

size of population this is logical and it is imperative that the focus on cost reduction is maintained to strengthen our position in this segment.

Rayon

The rayon tyre cord business operates in a niche market. It is predominantly export oriented and caters to the upper quality end of the tyre industry. This segment continues to show some growth and the existing players continue to share the growth. The ongoing efforts to increase production and reduce costs have been fruitful and needs to be maintained. Being export oriented, the industry is exposed to exchange rate fluctuations as also to rapidly increasing energy costs. Accordingly efforts to reduce energy costs and to enhance productivity and operating efficiencies is befng actively addressed.

Banks

a) Cash credits are secured by hypothecation of stocks/stores, both present and future. Some of these are further secured by hypothecation of book debts/ receivables ar>d also by way of second pari-passu mortgage and charge on the fixed assets, both present and future, except a unit of the Company.

b) Rs.117.204 millions (2002-04 - Rs.132.136 millions) are secured by a first mortgage and charge on all the immovable and movable properties of the Company excluding the assets of Daurala Organics a unit of the Company, subject to prior charges created / to be created in favour of the Company's bankers for securing the borrowings for working capital requirements, the charges ranking pari-passu with the charges created/to be created in favour of existing first charge holders for their respective term loans / debentures.

c) Rs.12.658 millions are secured by a first mortgage and charge on all the immovable and movable properties (save and except book debts) of Daurala Organics a unit of the Company, subject to prior charges created / to be created in favour of the Company's bankers for securing the borrowings for working capital requirements, the charges ranking pari-passu with the charges created/to be created in favour of existing first charge holders for their respective term

loans.

d) Rs. 11.480 millions (2002-04 - Rs.6.389 millions) are secured by hypothecation of the specific assets.

For more than a century the names DCM and Shriram have stood for a pioneering spirit. The cornerstones of the group's success have been integrity, innovation and excellence that only an unerring eye on quality can guarantee.

The reputation of DCM Shriram Industries Limited has been crafted by the vision of Sir Shriram. Fashioned by him into a major force in corporate enterprise, we strive to fulfil a legacy of technological knowhow, engineering enterprise, managerial and financial acumen, and above all the goodwill and faith of employees, shareholders and generations of customers.

They continue to build the success of our business on a foundation of individual excellence, ethics and values cherished by our founder Sir Shriram.

  In 1994,as the Fine Chemicals industry grew, a new company Daurala Organics Limited was promoted by DCM Shriram Industries to produce high value/high technology drug intermediates. Affiliations with three European companies were established to obtain state-of-the-art technology.

The growth of the business has been spectacular. Within a short span of 4 years, Daurala Organics Limited has achieved a major share of the Indian market.

Sales Turnover


Notes : 1. Sales include those of Daurala Organics Ltd.(DOL) and DSW Fine Chemicals (DSW)

The sprawling Daurala complex is spread over 300 acres, around 90 kms from Delhi, and houses a vast pool of trained manpower and technological expertise. The company added another feather to its cap, when it achieved the ISO 9002 certification in 1997 for all its products.

Daurala Organics Ltd. comprises of :

• Plants for the manufacture of Benzaldehyde, DL Phenly Glycine, D (-) Phenyl Glycine and its derivatives, Sodium / Potassium Phenyl Acetate and Meta Phenoxy Benzaldehyde.
• Comprehensive and extensive utilities.
• An Incinerator for solid wastes and a liquid Effluent Treatment Plant.
• Very well equipped QC and R&D laboratories.
• A very flexibly designed plant to be responsive to changing segments of products and customers.

Daurala Organics is under discussions with well known Indian and foreign organisations to take up contract manufacturing on their behalf.

The Fine Chemicals group has ties with the prestigious Shriram Institute for Industrial Research (SIIR), Delhi.

Equipments and Utilities available at Daurala Organics :

• Reactors (Glass, MSGL, SS, PVDF/FRP)
• Centrifuges (SS 316 with / without Lead lining) - Top and bottom discharge, with pneumatic conveying system for product.
• Distillation Kettles (SS, MS, GL)
• FBD, Vacuum Drier & Closed Loop Drying System
• Tanks & Vessels (Glass, MSGL, SS, HDPE, PVDF lined FRP, Lead lined MS, Cryogenic Tanks)
• Systems : Solvent recovery, Dry HCl gas generation, Nitrogen generation, Chilling Plant (-35^oC)
• Process Instruments : HPLC, Polarimeter, UV Spectrophotometer, Refractometer, Titroprocessor, GC, Parr reaction vessel, facilities for low temperatures and hazardous reactions.

Utilities :

• Refrigeration (Chilled Brine/TCE/Water-500 TR), own generation of power (20 MW), Steam (150TPH), Nitrogen, Soft/DM Water

Effluent Treatment Plant & Incinerator

A complete Pilot Plant

Reactions :

• Friedel Craft reaction, Chlorination (free radical and acid chlorination), Cyanation, Isomer separation, Racemisation, Hydrogenation (reduction), Hydrolysis,etc.

PRODUCT LIST

Product Name H.S. Code

Benzaldehyde 291221 00

Benzoic Acid
Benzoic Acid (IP)
Benzoic Acid (IS) 291631 01

Benzyl Acetate 291539 01

Benzyl Alcohol(IP/BP/FFC) 290621 00

Benzyl Benzoate(IP/BP/FFC) 291631 02

Benzyl Chloride 290369 03

Benzyl Cyanide 283719 09

Cinnamaldehyde 291229 01

Cinnamic Acid 291639 01

Cinnamic Alcohol 290629 01

D(-) Phenyl Glycine Base 294200 29

D(-) Phenyl Glycine Chloride Hydrochloride 294200 13

D(-) Phenyl Glycine Dane Salt 294200 07

D(-) Dihydro Phenyl Glycine Base 294200 29

D(-) Dihydro Phenyl Glycine Dane Salt 294200 29

Di-Benzyl Ether 292159 09

Hydrochloric Acid 280610 00

Meta Phenoxy Benzaldehyde 291249 00

Phenyl Acetic Acid(Perfumery Grade) 291634 00

Phenyl Acetic Acid(Pharma Grade) 291634 00

Phosphoric Acid 280920 01

Potassium Phenyl Acetate(liquid & solid)
Potassium Phenyl Acetate (Liquid)
Potassium Phenyl Acetate (Solid) 291634 00

Sodium Benzoate 291631 04

Sodium Phenyl Acetate(liquid & solid)
Sodium Phenyl Acetate (Liquid)
Sodium Phenyl Acetate (Solid) 291634 00

Sodium Sulphate 283300 00

Benzaldehyde
Description / Appearance Purity (on GLC) (min.%) Acid value (max.)	Colourless to straw yellow liquid 99 5

Benzoic Acid (IS)
Description / Appearance Solubility Purity Expressed as C7H6O2 % by Mass on dry basis Readiliy Oxidisable Substance Readiliy Carbonisable Substance Chlorinated Organic Compound Melting Range (Degree Centigrade) Aresenic mg/kg. Lead mg/kg. Heavy Metals	White Flakes or Crystals with a faint characteristic odour Freely soluble in Ethanol sparingly soluble in water 99.5(min.) Conforms Conforms Conforms 121.5 - 123.5 3.0 Max. 10 Max. 10 PPM.

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Benzyl Acetate
Description / Appearance Molecular Weight Odour Specific Gravity at 25 Degrees Centigrade Presence of Chlorinated Compound Acid Value Purity as Benzyl Acetate % by weight Solubility	Colourless liquid. 150.17 Intensely fruity(Jasmine) 1.052 to 1.056 Free from Chlorine 0.5 Max. 99% Clearly soluble in 5 volumes of Ethyl Alcohol(60% by vol.)

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Benzyl Alcohol
Description / Appearance Purity (on GLC)(min.%) Acid Value(max.) Weight per ml.(at 25 Degrees Centigrade) Test for Chlorinated Compound	Colourless liquid with faintly aromatic odour. 99 0.2 (Jasmine) 1.040 to 1.050 GMS Negative

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Benzyl Benzoate (FFC)
Description / Appearance Purity (on GLC)(min.%) Weight per ml.(at 25 Degrees Centigrade) Test for Chlorinated Compound	Colourless to straw yellow liquid with characteristic odour. 99 1.113 to 1.118 GMS Negative

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Benzyl Chloride
Description / Appearance Molecular Weight Purity Test for Alkalinity or Acidity	Colourless 126.58 Min. 99% on Gas Chromatograph Passes the test(not more than 0.05 ML of 0.1 N NaOH for 5 ML samples)

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Benzyl Cyanide
Description / Appearance Purity(on GLC)(min.%) Weight per ml.(at 20 Degrees Centigrade) Refractive Index(at 20 Degrees Centigrade)	Colourless to straw yellow liquid. 99 1.016 to 1.020 GMS 1.522 to 1.524

Cinnamaldehyde
Description / Appearance Purity(on GLC)(min.%) Acid value(max.) Specific Gravity(at 25 Degrees Centigrade) Refractive Index(at 20 Degrees Centigrade)	Clear, greenish yellow liquid with pungent spicy note. 98.5 5 1.048 to 1.052 GMS 1.6190 to 1.6230

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Cinnamic Acid
Description / Appearance Assay Ethanol in-soluble matter Loss on Drying Sulphated Ash Melting Point	White crystalline Solid Powder. 99 to 100% as C9H8O2 calculated with reference to dried substance A 10% W/W. Solution in Ethanol shall be clear 1.0% Not more than 0.1% 132 to 134 Degrees Centigrade

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Cinnamic Alcohol
Description / Appearance Purity (on GLC)(min.%) Aldehyde content(max.) Test for Halogens Congealing point(min Degrees Centigrade)	Colourless to slight yellow liquid with characteristic balsamic odour. 98 5.0 as Cinnamaldehyde Negative 31

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D(-) Phenyl Glycine (PG)
Description / Appearance Assay(min.%) U.V. Absorbance(max.)(5% in 1N NaOH at 420nm) Specific Rotation(deg.)(5% soln. in 1N HCL at 20 Degrees Centigrade) Moisture(by KF)(max%)	White Crystalline Powder. 99 0.03 -155 to -159 0.20

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D(-) Phenyl Glycine Chloride Hydrochloride (PGCH)
Description / Appearance Assay(as PGCH)(min.%) PGHCL(max.%) U.V. Absorbance(max.)(10% soln. in MeOH at 420nm) Specific Rotation(deg.)(6% soln. in 1N HCL) Phosphorus(as PCL5)(max.%) Loss on Drying(max.%)(2hrs. at 60 Degrees Centigrade, 5mm Hg)	White to faintly pink Powder. 97 3 0.20 -112 to -118 0.1 1

D(-) Phenyl Glycine Dane Salt (PGDS)
Description / Appearance Assay(min.%) Moisture(by KF)(max.%) U.V. Absorbance(max.)(5% soln. in 1N HCL at 420nm) Specific Rotation(deg.)(1% soln. in 1N HCL) pH(1% Aq. Soln.)	Ethyl Potassium White crystalline powder. 98.5 0.5 0.03 -78 to -82 9 to 10	Methyl Sodium White crystalline powder. 98.5 0.5 0.03 -85 to -95 9 to 10

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D(-) Dihydro Phenyl Glycine
Description / Appearance Identification Assay(min.%) Phenyl Glycine(max.%) Moisture(by KF)(max.%) Specific Rotation(deg.)(1% soln. in 1N HCL)	White crystalline powder. IR Conforms 99 1 0.3 -152 to -162

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D(-) Dihydro Phenyl Glycine Dane Salt(Methyl Sodium)
Description / Appearance Identification Assay(min.%) Phenyl Glycine(max.%) Moisture(by KF)(max.%) Specific Rotation(deg.)(1% soln. in 1N HCL)	White crystalline powder. IR Conforms 98.5 1 0.3 -85 to -95

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Di-Benzyl Ether
Description / Appearance Molecular Weight Purity	Colourless 198.25 Min. 97.0 on gas chromatograph

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Hydrochloric Acid
Description / Appearance Strength Organic Impurity	Clear & Colourless to slight yellowish liquid Min. 30.0 Free from Organic Impurities

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Meta Phenoxy Bezaldehyde
Description / Appearance Purity(min.%) Specific Gravity(gms/cc at 25 Degrees Centigrade)	Yellow brown liquid with fruity odour 98 1.14 - 1.15

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Phenyl Acetic Acid (Perfumery Grade)
Description / Appearance Purity as PAA(min.%)(on moisture free basis) Melting Point(0 Degrees Centigrade)	Wheatish to creamish crystalline flakes/flaky powder with characteristic pleasent odour 99 76 to 78

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Phenyl Acetic Acid (Pharma Grade)
Description / Appearance Purity (min.%) Moisture(max.%) Melting Point(Degrees Centigrade)	White to creamy flaky powder with characteristic odour 99 1.0 76 to 78

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Phosphoric Acid
Description / Appearance Purity	Yellowish Viscous Liquid. Min. 75%

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Potassium Phenyl Acetate (Solid)
Description / Appearance Purity(min.%) Loss on Drying(max.%)(at 120 Degrees Centigrade) pH(10% Aq. Solution) Iron(max. ppm) Lead(max. ppm) Arsenic(max. ppm) Cyanide Clarity of Solution	White crystalline powder or granules/agglomerated lumps. 97 2.0 7.5 to 9.5 10 5 5 Not Detectable Clear to least turbid

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Sodium Phenyl Acetate (Liquid)
Description / Appearance Assay (%) Sp. Gravity (at 25C) pH (10% Aq. Solution) Iron (max. ppm) Lead (max. ppm) Arsenic (max. ppm) Cyanide	Clear, pale yellow to yellowish brown liquid with characteristic odour 44(+/-)1 1.15 to 1.17 6.5 to 8.5 10 5 5 Not detectable

Sodium Phenyl Acetate (Solid)
Description / Appearance Assay (min. %) Loss on drying (max. %)(at 120 Degrees Centigrade) pH (10% Aq. Solution) Iron (max. ppm) Lead (max. ppm) Arsenic (max. ppm) Cyanide Clarity of solution	White Crystalline powder of granules / agglomerated lumps. 97 2.0 7.5 to 9.5 10 5 5 Not detectable Clear to least turbid

Daurala is situated 90km from Delhi on the way to holy town of Rishikesh and Haridwar. The most convenient way to reach Daurala is by car which takes approximately 2 hrs.

Corporate / Marketing Office

22-B, Himalaya House, 23 Kasturba Gandhi Marg,
New Delhi-110 001, India.
Tel. : ++91 11 3318609
Fax : ++91 11 3318605
E-mail : doldelhi@del2.vsnl.net.in

Factory

Daurala Organics Limited, Daurala, Distt. Meerut - 250221
Uttar Pradesh, India.
Tel. : ++91 1237 88030/57/86
Fax : ++91 1237 88131

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 records 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 records 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. 46.20
UK Pound	1	Rs. 84.57
Euro	1	Rs. 58.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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