MIRA INFORM REPORT

Report Date :

31^ST May, 2006

IDENTIFICATION DETAILS

Name :	BOROSIL GLASS WORKS LIMITED
Registered Office :	Khanna Construction House, 44, Dr. R. G. Thadani Marg, Worli, Mumbai – 400 018, Maharashtra, INDIA
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	14^th December, 1962
Com. Reg. No.:	11-12538
TAN No.: [Tax Deduction & Collection Account No.]	MUMB00740F/MUMB11821F
PAN No.: [Permanent Account No.]	AAACB5484G
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturing of Borosilicate Glassware for Scientific and Laboratory Purpose, Industrial Glassware, Consumer Glassware and also trading in consumer Glassware.

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 1750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having fine track records. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Khanna Construction House, 44, Dr. R. G. Thadani Marg, Worli, Mumbai – 400 018, Maharashtra, INDIA
Tel. No.:	91-22-2493 0362 / 2493 0366 / 2493 0370
Fax No.:	91-22-2495 0561 / 2494 8161
E-Mail :	borosil@vsnl.com
Website :	http://www.borosil.com
Factory 1 :	Marol-Maroshi Road, Off Military Road, Andheri, Mumbai 400 059, Tel. No. 91-22-2850 8990 Fax No. 91-22-2850 6685 A1F, Industrial Complex, Marai Malai Nagar - 603 209, Tamil Nadu, India
Sales Office	v Block No. 403/404, Kalindas Udyog Bhavan Premises Co-op. Society Limited, Near Century Bazar, Worli, Mumbai 400 025, Maharashtra v Dabriwala House, 10 Middleton Row, Kolkata - 700 071, West Bengal v 161, Anna Salai, Chennai 600 002, Tamil Nadu v 19/90, Connaught Circus, New Delhi 110 001

DIRECTORS

Name :	Mr. B. L. Kheruka
Designation :	Chairman
Address :
Date of Birth/Age :	Mr. P. K. Kheruka
Qualification :	Director
Experience :
Date of Appointment :	Mr. V. N. Nadkarni
	Director
Name :	Mr. A.C. Dala
Designation :	Director
Date of Birth/Age :	28.08.1989
Experience	50 years
Date of Appointment :	28.08.1898
Previous Employment	Director with Sutlej Industries Limited Pilani Investments & Industries Limited Vidula Chemicals & Manufacturing Industries Limited Birla Global Finance Limited Century Textiles and Industries Limited Birla Securities Limited
Chairman/Member	Century Textiles and Industries Limited – Audit Committee Member Sutlej Industries Limited - Audit Committee Member
Name :	Mr S. Bagai
Designation :	Director
Date of Birth/Age :	07.03.1956
Experience :	Advocate with rich Experience
Date of Appointment :	29.06.2002
Previous Employment	Director with C. Net Telecon (India) Limited Prime Proteins Limited
Name :	Mr. R. Mehra
Designation :	Wholetime Director
Date of Birth/Age :	54years
Qualification :	B.Sc., H.N. C. Loughborough (UK)
Experience :	31 years
Date of Appointment :	03.10.1981
Previous Employment	Head of Engineering & Quality Control Department – Crompton Graves Limited

KEY EXECUTIVES

Name :	Ms. Krupa Anandpara
Designation :	Company Sectary

MAJOR SHAREHOLDERS

Names of Shareholders (31.12.2005)	No. of Shares	Percentage of Holding
Promoters
Indian Promoters	1562180	45.557
NON-PROMOTERS HOLDING
Institutional Investors	700	0.020
Mutual Funds and UTI	310367	9.051
FIIs	391950	11.430
Others
Private Corporate Bodies	197186	5.750
Indian Public	956416	27.891
NRIs/OCBs	7115	0.207
Any Other - Shares in transit	2189	0.064
Foreign Nationals	975	0.028
Total	3429078	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Borosilicate Glassware for Scientific and Laboratory Purpose, Industrial Glassware, Consumer Glassware and also trading in consumer Glassware.

Products :

Product Description	Item Code No.
Laboratory & Industrial Glassware	7017
Table Kitchen Glassware	7013
Glass Rods & Tubes	7002

The company’s product range includes the following:

Ø Domestic glassware

Ø Artware

Ø Barware / restaurant

Ø Bowls

Ø Cookware

Ø Decanters

Ø Drinking glasses

Ø Giftware

Ø Jugs

Ø Kitchenware

Ø Mugs

Ø Tableware

Ø Tumblers

Ø Over ware

Ø Lighting glassware

Ø Lamp-chimney

Ø Well glass

Ø Tubing, vials, ampoules tubing

Ø Pipes & fittings

Ø Rods

Ø Tubes

Ø Washing machine covers microware platter

Ø Scientific lab and medical glassware

Ø Apparatus

Ø Beakers

Ø Bottles and jars

Ø Capillary tubes

Ø Chemical (general)

Ø Medical glassware

Ø Pipettes

Ø Test tubes

Ø Tubes

Ø Volumetric glassware

Exports to :

Australia, Botswana, Tunisia, Greece and Denmark

PRODUCTION STATUS

Licensed Capacity:

Class of goods manufactured
1. Scientific Apparatus and Laboratory Glassware 2. Domestic Glassware	Licensed capacity is not applicable in view of the company’s products having been delicensed
Installed Capacity
Installed Capacity on the basis of Glass melted (as certified by the Management but note verified by the Auditors, being a technical matter)		12900 Tons
Actual Production (packed for sale)		2474 Tons

GENERAL INFORMATION

No. of Employees :

850

Bankers :

v Bank of Baroda

v Union Bank of India

v ICICI Bank Limited

v The Zoroastrian Co-operative Bank Limited

Facilities :

SECURED LOANS	31.03.2005
Working Capital facilities from Banks	133.285
Term loans from Institutions	93.408
Secured Redeemable Debentures	36.215
Car Loan from Bank	0.622
Total :	263.530
SECURITY: 1. Working Capital facilities referred in A above are secured by joint hypothecation of stocks, spares, other tangible movable assets, book debts, other receivables and additionally secured by joint mortgage of immovable properties of the Company at Marol - Andheri (Mumbai) and Maraimalai Nagar, Tamilnadu ranking second and subservient to mortgages created in favour of Term Lenders / Debenture Trustees and further guaranteed by two Directors in their personal capacity. 2. Term Loans referred in B above are secured by joint mortage by deposit of title deeds of immovable properties of the Company at Marol - Andheri (Mumbai) and Maraimalai Nagar, TamilNadu and by hypothecation of movable properties of the Company (except book debts) subject to prior charges in favour of banks and on specific items of machinery. These are additionally secured by Flats/ Offices of the Company and are guaranteed by a Director in his personal capacity. 3. Secured Redeemable Debentures are secured by joint mortgage by deposit of title deeds of immovable properties of the Company at Marol-Andheri (Mumbai) and at Bharuch and movable properties of the Company, subject to prior mortgage/ charge in favour of term lending institutions.The Debentures carry interest at 13.25% and are redeemable in two instalments on 14th August, 2005 and 2006. 4. Car Loan are secured by specific car.
UNSECURED LOANS
Fixed Deposits	27.870
Inter Corporate Deposits	38.500
Interest accrued and due on loans	1.625
With Banks	4.835
With Others	0.017
Total :	72.847

Banking Relations :	Good
Auditors :	Chaturvedi & Shah, Chartered Accountants
Associates/Subsidiaries :	Window Glass Limited E-2/3, Netaji Subhash Road, Calcutta - 700 001, West Bengal Established in the year 1963 Gujarat Fusion Glass Limited Fennel Investment & Finance Private Limited SUBSIDIARIES Gujarat Borosil Limited Established in the year 1994. Swapan Properties Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1,20,00,000	Equity Shares	Rs. 10/- each	Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,429,078	Equity Shares	Rs. 10/- each	Rs. 34.291 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		34.291	34.291	34.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		405.005	426.774	425.700
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		439.296	461.065	460.000
LOAN FUNDS
1] Secured Loans		263.530	322.867	496.600
2] Unsecured Loans		72.847	75.748	37.000
TOTAL BORROWING		336.377	398.615	533.600
DEFERRED TAX LIABILITIES		20.651	34.099	0.000
TOTAL		796.324	893.779	993.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		444.931	360.739	426.600
Capital work-in-progress		22.828	84.484	27.200
INVESTMENT		129.343	129.343	128.900
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	231.739	212.270	264.400
	Sundry Debtors	98.677	144.283	172.600
	Cash & Bank Balances	8.647	28.211	83.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.278	64.863	66.600
Total Current Assets		374.341	449.627	587.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	154.603	125.153	179.200
	Provisions	20.516	11.496	10.700
Total Current Liabilities		175.119	136.649	189.900
Net Current Assets		199.222	312.978	397.600
MISCELLANEOUS EXPENSES		0.000	6.235	13.300
TOTAL		796.324	893.779	993.600

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	624.144	578.852	677.000
Profit/(Loss) Before Tax	(9.808)	8.017	(3.200)
Provision for Taxation	13.433	6.920	7.700
Profit/(Loss) After Tax	(23.241)	1.097	(4.500)
Export Value	36.612	30.371	NA
Import Value	32.119	41.330	NA
Total Expenditure	562.749	526.627	645.200

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2005 [1^st Quarter]	30.09.2005 [2^nd Quarter]	31.12.2005 [3^rd Quarter]
Sales Turnover	123.600	145.900	178.600
Other Income	3.500	45.800	3.500
Total Income	127.100	191.700	182.100
Total Expenditure	104.500	154.400	150.800
Operating Profit	22.600	37.300	31.300
Interest	7.800	7.900	7.500
Gross Profit	14.800	29.400	23.800
Depreciation	9.800	9.800	10.100
Tax	0.800	1.400	1.600
Reported PAT	2.500	14.200	7.500

200506 Quarter 1 - The above results were reviwed by the Audit Committee and approved by the Board of Directors at its Meeting held on 29th July, 2005. 2. The above Financial Results have been subjected to a limited review by the Statutory Auditors of the Company. 3. The Furnace at Maraimalai Nagar, Tamil Nadu and Furnace No. 2 at Marol, Mumbai continue to remain under suspension. 4. The Company has received 6 complaints from the Investors during the quarter ended 30th June, 2005 which have been disposed off. There were no complaints lying unresolved at the beginning or at the end of the quarter. 5. Since the assets are used in the Company business interchangeable and the suppliers of raw materials and consumables are common, disclosure of segment wise assets, liabilities, capital expenditure, depreciation and non-cash expenditure is not fessible. 6. The Financial Results are in accordance with the Standard Accounting Practices followed by the Company in preparation of its statutory accounts. 7. The previous period figures have been regrouped/reclassified wherever necessary to make them comparable.

200509 Quarter 2 - : Extraordinary items Includes Provision for Loss due to flood Rs 35.10 million Insurance Claim Received Rs (32.40) million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 12 Complaints disposed off during the quarter 12 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its Meeting held on October 25, 2005. 2. The above financial results have been subjected to a limited review by the Statutory Auditors of the Company. 3. Owing to flood at Marol plant, Mumbai in July, 2005 due to unprecedented rains, there has been substantial damage of inventory, against which the Company has received insurance claim, both of which have been treated as Extra-ordinary items in the above results. 4. The furnace at Maraimalai Nagar, Tamilnadu and furnace no. 2 at Marol, Mumbai continue to remain under suspension. 5. Since the assets are used in the Companys business interchangeably and the suppliers of raw materials and consumables are common, disclosure of segment wise assets, liabilities, capital expenditure, depreciation and non-cash expenditure is not feasible. 6. The Financial Results are in accordance with the Standard Accounting Practices followed by the Company in preparation of its statutory accounts. 7. The previous period figures have been regrouped/reclassified wherever necessary to make them comparable.

200512 Quarter 3 - Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 8.10 million Consumption of Raw Materials Rs 7.90 million Purchase of Finished Goods Rs 28.40 million Power & Fuel Rs 25.50 million Staff Cost Rs 37.90 million Other Expenditure Rs 43.00 million Tax Includes Provision for Income Tax Rs 1.10 million Fringe Benefit Tax Rs 0.50 million Deferred Tax Rs 4.60 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 12 Complaints disposed off during the quarter 12 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their Meeting held on January 27, 2006. 2. The above financial results have been subjected to a limited review by the Statutory Auditors of the Company. 3. Owing to flood at Marol plant, Mumbai in July, 2005, there was substantial damage of inventory, against which the Company has received insurance claim, both of which have been treated as Extra-ordinary items in the above results for the nine months ended December 31, 2005. 4. The furnace at Maraimalai Nagar, Tamilnadu and furnace no. 2 at Marol, Mumbai continue to remain under suspension. 5. Since the assets are used in the Company's business interchangeably and the suppliers of raw materials and consumables are common, disclosure of segment wise assets, liabilities, capital expenditure, depredation and non- cash expenditure is not feasible. 6. The Financial Results are in accordance with the Standard Accounting Practices followed by the Company in preparation of its statutory accounts. 7. The previous period figures have been regrouped/ reclassified wherever necessary to make them comparable.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt Equity Ratio	1.74	2.11	2.56
Long Term Debt Equity Ratio	0.94	1.42	1.84
Current Ratio	1.16	1.56	1.70
TURNOVER RATIOS
Fixed Assets	1.21	1.36	1.32
Inventory	2.84	2.73	2.32
Debtors	5.19	4.11	4.16
Interest Cover Ratio	1.35	0.73	0.63
Operating Profit Margin (%)	10.15	8.49	11.23
Profit Before Interest and Tax Margin (%)	5.95	4.05	5.98
Cash Profit Margin (%)	7.89	4.33	2.84
Adjusted Net Profit Margin (%)	3.68	(0.11)	(2.42)
Return on Capital Employed (%)	6.52	3.90	5.41
Return on Net Worth (%)	11.00	(0.32)	(7.60)

STOCK PRICES

Face Value	Rs.10/-
High	Rs.106.50/-
Low	Rs.100.75/-

LOCAL AGENCY FURTHER INFORMATION

History

Borosil Glass Works (BG) was formed in Dec.'62 mainly to acquire the undertaking of the Industrial and Engineering Apparatus Company Pvt Ltd. In Jun.'90, the company came out with a rights issue.  

 BG manufactures borosilicate tyre neutral and heat-resistant tubing and rods, scientific apparatus, laboratory glassware, etc. Its plants are located in Tamilnadu and Maharashtra. In 1963, a technical collaboration agreement was entered into with Corning Glass Works, New York. The company has subsidiary, namely Gujarat Borosil.  

 In 1995-96, the company has come out with a modernisation programme as well as a diversification programme. As part of the modernisation programme, it proposes to manufacture borosilicate glass tubings in the Marol plant. As part of its diversification programme, the company has envisaged a new project at its Marai Malai Nagar plant for the manufacture of heat resistant borosilicate opal tableware. 

A new project was envisaged at the Mari Malai Nagar Plant for the manufacture of heat resistant borosilicate opal tableware using an all-electric furnace based usage of in-plant cullet.

Gujarat Borosil Limited (formerly Gujarat Window Glass Limited) and Swapan Properties Limited are subsidiaries of the company.

During the year 1996 ICICI Banking Corporation Limited joined the consortium of banks for financing the working capital requirements of the company.

During the year 1999 the company developed new export markets in Australia, Botswana, Tunisia, Greece and Denmark.

2000 – The company executed a tripartite contract with Jenaer Schmelztechnik Jodeit and Limenauer Glasmaschinenbau, both of Germany pertaining to supply of technical knowhow and equipment for modernisation cum expansion of company’s furnace at Maraimalai Nagar, Tamilnadu.

Borosil International, a division of Borosil Glass Works Limited has tied up with Europe-based Bormioli Rocco, to launch a premium tableware glass collection in India.

The company presented the Borosil International Range, transparent, light glassware, that includes Bake and Serve, Cook and Serfe, Carafes and Tea Sets.

 The sale of imported consumerware under the brand name Borosil International and Boromoili Rocco have performed well during 2000-2001. Gujarat Borosil Ltd ceased to be a subsidiary of the company from 30th March 2002. In 2002-03 the company entered into a contract with Amercian Consultant for supply of designs,drawings,equipments and technical know-how for upgradation of furnace No 1 by enhancing its capacity from 12 MT to 22 MT per day. To finance the above project the company is taking steps to tie up with Banks/Institutions etc. The company is also proposing for a rights issue of shares with the prior approval from Shareholders at the ensuing AGM.

The company is in trade terms with: -

v Apala Minichem

v Eros Minerals

v Adinath Minichem Industries

v Krishna Packaging

v Surya Packaging

v Paper Pack Industries

v Sterling Packaging

v Advance packaging

v Jose Davis

v Jay Industris

v Indian Reed Industries

v Suraj Paper Industries

v National Bakelite

v Maulik Plastic

v Shobha Rubber Industries

v Glassage Industries

v Shingadia Engineering

v Vivek Art

v Spencer Prints

v Morefloun Industries

v Solar Paper Corporation

v K-2 Packaging

Performance

The Company has successfully completed rebuild of Furnace No. 1 at Marol witr^ enhanced capacity of 22 M. T. per day incurring cost of Rs. 142.200 Millions . For the purpose, the operations at Furnace No. 1 at Marol were suspended from first week of September 2004 till end of December 2004. The rebuid has resulted in much better quality of products as well as substantial savings in fuel cost as envisaged. The Company met the expenditure partly by inter-corporate loans and balance from internal funds. Furnace No. 2 was operational only upto December 2004 whereas operations at Maraimalai Nagar remain

suspended. - Inspite of all these constraints, the Company could manage reasonable profits and dividend has been recommended after a gap of 9 years. The Company hopes to achieve much better results during the current financial year. The Company has entered into tripartite Agreement for implementation of mySAP ERP System. The implementation of ERP is likely to improve the efficiency of business operations and will result in easy availability of real time data and thereby improved Management Information System (MIS). This will also help in integration of all business operations.'

The Company has in compliance with the Accounting Standard on "Impairment of Assets" assessed its assets for impairment and accordingly an impairment loss of Rs. 41.133 Millions has been charged to the Profit and Loss Account and equivalent amount has been withdrawn from the General Reserve and credited to the Profit and Loss Account. Exports during the year increased to Rs. 36.600 Millions as compared to Rs. 29.500 Millions in the preceding year.

Opportunities and Threats

The scientific and industrial segments depend largely on government funding which has remained nearly stagnant during the last few years. In view of this, the Company has been laying greater emphasis on increase of exports, which have yielded positive results in the form of steady growth of export sales.

Fierce competition mainly from imported goods in consumerware segment continues. The Company has been, trying to consolidate its position in the areas where the Company has .edge over others. The Company has arrangement/ understanding with various manufacturers of Europe and South East Asia to market and sell various items which are required in the domestic market,alongwith the products manufactured by the Company. O The most serious threat to the business of the Company is from unrestricted import and dumping of scientific and industrial products by importers from various countries. In view of rationalization of pricing of its tubing during the last year, the Company has been .able to thwart further inroads in its market share inspite of unbridled imports. The second major threat is availability of significant quantities of spurious goods bearing Company's brand name. In order to combat this, the Company has been conducting raids on unscrupulous manufacturers/traders during the last 2

to 3 years. However,, this menace is so deep that constant vigil and actions are required to tackle with this. Usage of plastics and instruments in laboratories as substitute for glassware is also posing a threat to the Company.

Segmentwise or Productionwise Performance.

Scientific and Industrial Product Division The overall growth of scientific and laboratory business in the country has been limited because of restricted government funding. The performance of this division has been affected during a part of the year, on account of lower availability of tubing and handshop items as a result of rebuild of Tank # 1 at Marol as also because of availability of substitute products. This has been partly offset by increase in exports.

Consumerware Division

The Company has been making constant efforts to strengthen its position in microwave glassware segment and concentrating on selling mainly two brands namely. Borosil International and Napoli in addition to its traditional Borosil ® brand. The Company has been trying .to increase sales of the products under these brands. The sales from the division have improved marginally.

Outlook

Scientific and Industrial Products:

As mentioned above, the scope of growth in this segment in domestic market is limited. The Company has augmented its sub-contract activities, which have resulted in better availability of products. However, there is huge untapped export market. With the availability of products, the Company will try to expand its presence in foreign market, which will give boost to its export sales, This will partly off-set constraints of growth in domestic market.

Consumerware' Products:

The Company is a market leader in microwave glassware segment and emerging fast as market leader in higher quality drinking glasses. There is still scope for growth in microwave glassware and drinking glasses segments. The Company will continue to concentrate in these two areas to consolidate its position further.

Risks and Concerns

Dumping of goods by foreign .competitors.

Increased usage of other scientific products e.g. plastics and instruments.

Activities in spurious products.

Competition from imported goods mostly from the grey market.

Reduction in apex customs duty on glassware from 20% to 15% without corresponding reduction in excise duty.

Fixed assets

v Land (freehold and leasehold)

v Buildings

v Plant, machinery

v Equipment

v Furniture, fixtures

v Office equipments

v Vehicles

As per website details:

Company Profile

BOROSIL GLASS WORKS LIMITED was established in December 1962 in collaboration with Corning Glass Works of U.S.A. to manufacture borosilicate low expansion glass - a type of glass so special that it requires melting temperatures as high as 1625°C and a technology so sophisticated that even today very few countries in the world possess it. In December 1988, Corning divested its share holdings to the Kheruka group who have been a leading manufacturer of sheet glass in India since 1961 .

Today, BOROSIL® manufactures extremely high quality Tubing, Blown ware and Press ware using state of the art equipment. All manufacturing processes of the glass manufacturing such as melting, forming, shaping etc. are carried out in-house, enabling built-in quality checks at every stage. The spirit of growth and technical upgradation is a continuous process making BOROSIL® a world leader in specialty glass with exports covering several countries in America , The British Isles, Eastern Europe , Africa , Middle East and South Asia .

The ISO 9001:2000 certification is a proof of the high and consistent standards of quality maintained by the company. BOROSIL® glass has found use in over 2000 different products and applications, in areas as diverse as Microbiology, Biotechnology, Photo Printing, Laboratory ware, Solar Collectors, Process Systems, Lighting and Consumer ware.

In the Indian laboratory ware segment, Borosil services the Research and Development, Industrial, Healthcare and the Educational segments of the market and almost all leading Research and QC laboratories, Institutions, Industrial and Healthcare laboratories are using BOROSIL ® brand products.

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.46.22
UK Pound	1	Rs.86.07
Euro	1	Rs.59.03

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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		54

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	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