MIRA INFORM REPORT

Report Date :

16.04.2007

IDENTIFICATION DETAILS

Name :	GRAUER AND WEIL (INDIA) LIMITED
Registered Office :	‘Growel House’, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	25.11.1957
Com. Reg. No.:	11-10975
CIN No.: [Company Identification No.]	U74999MH1957PLC010975
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08103E
PAN No.: [Permanent Account No.]	AAACG3741K
Legal Form :	Public Limited Liability Company. The Company’s shares are listed on Stock Exchanges.
Line of Business :	Manufacturing of Metal Finishing Plants, Equipment Chemicals, Buffing and Finishing Compounds, Mops, Wheels and Brushes.

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 1800000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. General financial position is satisfactory. Payments are usually correct and as per commitments. Your proposed business dealings can be considered against normal trade terms and conditions.

LOCATIONS

Registered Office :	‘Growel House’, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra, India
Tel. No.:	91-22-28879173/28876664
Fax No.:	91-22-28877165/28871291
E-Mail :	mail@growel.com, secretarial@growel.com
Website :	http://www.growel.com
Factories :	Ø 215/1, Plot No. 10, Dadra Industrial Estate, Dadra – 396191, Dadra and Nagar Haveli- (Union Territories) Ø ‘Growel House’, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra, India Ø Plot No. 31 & 32, Industrial Estate, Barotiwala – 174103, Himachal Pradesh, India Ø 407, GIDC Industrial Estate, Vapi – 396195, Gujarat, India Ø Survey No. 66, Village Dhanore, Taluka Khed, District Pune, Maharashtra, India
Branch :	Located at:- Ø 10-11-12, B Wing, 1^st Floor, Modern Industrial Estate, K. M. Mehta Stone & Engineering Works, Behind Forge & Flower Company, Naroda Road, Ahmedabad-380025, Gujarat, India. o Tel No. 91-79-22813769. Ø Growel House, 4/14, Crescent Road, High Ground, Bangalore-560001, Karnataka, India. o Tel No. 91-80-2202262. o Fax No.91-80-22260292 Ø 403, 4^th Floor, Todi Chambers, 2, Lal Bazar Street, Kolkata-700001, West Bengal, India o Tel No. 91-33-22206802 / 22489805 o Fax No. 91-33-22420868. Ø No.2 Sun Plaza, 2^nd Floor, Near Anna Flyover, 19, G.N.Chetty Road, Chennai - 600006, Tamilnadu, India. Ø Growel House, C-116, Okhla Industrial Area 1, New Delhi-110020, India. o Tel No. 91-11-26812005 / 26813163 /26817463 /26811882. o Fax No. 91-11-26810917. Ø 10, MPJ Chambers, Bombay-Pune Road, Wakdewadi, Pune-411003, Maharashtra, India. o Tel No. 91-20-22317758
Exports Division	Ø Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra, India o Tel. No. 91-22-56993000 o Telefax.No. 91-22-56993011 o E-Mail. exp@growel.com o Contact Person : Ms. Mala Singh Ø 310,P.B. Parekh Tower, Opp. Vanijya Bhavan,Kankaria, Ahmedabad - 380022, Gujarat, India o Tel. No. 91-79-25471953 o E-Mail. gwabd@icenet.net. o Contact Person : Mr. Harish Gurnani Ø 4/14, Cresent Road, High Ground, Bangalore - 560001,Karnataka, India o Tel. No. (office) 91-80-2260230 § (factory) 91-80-2264119 o E-Mail. bangalore@growel.com o Contact Person : Mr. M. S. Seetharam Ø Plot No. 31&32 Industrial Area, Barotiwala-174103, Himachal Pradesh, India o Tel. No. (office) 91-1792-255235/255370/71 § (factory) 91-1792-255289 o E-Mail. growelbt@cha.i91.ne o Contact Person : Mr. Rajender Guleria Ø House No. 7, Sector No. 17, Panchkula, Harayana – 134112, India o Tel. No. (office) 91-172-2572713/4 Ø 803,8^th Floor, Challamall # 11, Thegaraja Road, T Nagar, Chennai - 600017, Tamilnadu, India o Tel. No. (office) 91-44-24346161 § (factory) 91-44-24357376 o E-Mail. chennai@growel.com o Contact Person : Mr. H. Muthu o Mr. V. Ramesh Ø 426 A, Venkatswamy Road, Siddhapudur, Combitore –641044, India o Tel.No.(office) 91-422-2495351/2437210 o Res.No. 91-422-2424642 o E-mail. growelcb@md4.vsnl.net.in o Contact Person : Mr.K. Rajendran Ø 216/3/7 Dadra Industrial Estate, Dadra and Nagar Havali (Union Territories) - 396191 o Tel.No.(office) 91-260-2648151/2649618 o (factory) 91-260-2648876 Ø Vijay Bhavan, 2^nd Floor, 28 Subhash Marg, Ram Bagh Chauraha, Indore - 452004, Madhya Pradesh, India o Tel. No. (office) 91-731-2547212 o Res. No. 91-731-2468513 o E-mail. indore@growel.com o Contact Person : Mr. Sanjay Ahirkar Ø Shop No.4, 3^rd Floor, Sania Plaza, Opp. Stadium Complex, Irranakulam, Kochi - 682035, Kerla, India o Tel. No. 91-484-2355008 o Contact Person : Mr. G.C. Sunil Ø 403, 4^thFloor, Todi Chambers, 2, Lal Bazar Street, Kolkata - 700001, West Bengal, India o Tel. No.(office) 91-33-22206802 § (factory) 91-33-2242086 o Contact Person : P.K. Chakravarty Ø Opp. Hero Cycles Limited, G.T.Road, Ludhiana - 141003, Punjab, India o Tel. No. (office) 91-161-2301362 § (factory) 91-161-2671951 o Res. No. 91-161-2456486 o Contact Person : Mr. D.K. Bhardwaj Ø Sree Meenakshi Mansion 34-A, LLB Road, Sunderajpuram, Madurai - 625011, Tamilnadu, India Contact Peson : Mr. M.S.Seetharam
Manufacturing Plants :	Located at : v Alandi v Barotiwala v Dadra v Vapi

DIRECTORS

Name :	Mr. Umeshkumar N. More
Designation :	Chairman & Managing Director
Name :	Mr. Rameshkumar R. More
Designation :	Director
Date of Birth/Age :	30.06.1950
Qualification :	B.Com
Date of Appointment :	Since 24.03.1982
Other Directorships	Poona Bottling Company Limited Waluj Beverages Private Limited Indoswe Engineering Private Limited Avanti Cables Private Limited Shree M.P.J. Builders Private Limited
Name :	Mr. Nirajkumar U. More
Designation :	Director
Name :	Mr. Madan Mohan Chaturvedi
Designation :	Director
Name :	Mr. Rohan Shah
Designation :	Director
Name :	Mr. Vinod Haritwal
Designation :	CEO and Executive Director
Date of Birth/Age :	05.10.1958
Qualification :	B.Com, C.A., C.S., LLB
Date of Appointment :	Since 18.05.1998
Other Directorships	Bombay Paints Limited Growel Investment Limited Ridhi Sidhi Limited Growel Softech Limited Digikore Design Limited Digikore Studios Limited Growel Energy Company Limited Nikmo Finance Private Limited Nikmo Biotech Private Limited
Name :	Mr. Rohitkumar R. More
Designation :	Director
Name :	Mr. Rajendra Guleria
Designation :	Director
Name :	Mr. M. B. Nihalani
Designation :	Company Secretary
Name :	Mr. Karunchandra Srivastava
Designation :	Director
AUDIT COMMITTEE
Mr. Rameshkumar R. More	Chairman
Mr. Nirajkumar U. More	Member
Mr. Madan Mohan Chaturvedi	Member
SHAREHOLDERS COMMITTEE
Mr. Nirajkumar U. More	Chairman
Mr. Rameshkumar R. More	Member
Mr. Vinod Haritwal	Member
EXECUTIVES
Vinay Gupta	President
VICE PRESIDENTS
Mrs. Pallavi More	Vice Presidents
Mrs. Mala Singh	Vice Presidents
Mr. M. T. Rara	Vice Presidents
Mr. D K Bharadwaj	Vice Presidents
Mr. Rattan Sharma	Vice Presidents
Mr. M. A. Srisailam	Vice Presidents
Mr. S K Sakhalkar	Vice Presidents
Mr. A V Dabir	Vice Presidents

KEY EXECUTIVES

Name :	Mr. M B Nihalani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters and Associates	6273080	49.05
Mutual Funds & UTI	2062	0.02
Banks & Financial Institutions	5575	0.04
FII	100000	0.78
Private Bodies Corporate	875100	6.84
Indian Public	4724248	36.95
NRI/OCBs	807660	6.32
Total	12787725	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Metal Finishing Plants, Equipment Chemicals, Buffing and Finishing Compounds, Mops, Wheels and Brushes.

Products :

Product Description	ITC Code
Electroplating Salt	38249021
Electroplating Machinery and Parts	85433000

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Electroplating Chemicals and Enthone Chemicals	Tons	16800	6567
Electroplating Basic Chemicals	Tons	700	262
Intermdediatory Chemicals	Tons	1200	1228

GENERAL INFORMATION

No. of Employees :

500

Bankers :

· Central Bank of India

· Punjab National Bank

· HDFC Bank Limited

Facilities :

(Rupees in millions)

Credit Facilities from Banks
Term Loans	184.041
VRS Term Loans	--
Working Capital Facilities	155.755
Hire Purchase Credits	6.636

1 ] Term Loans and VRS Term Loans from Banks are secured by a pari passu first charge by way of hypothecation of company's movable assets at its Kandivli and Barotiwala plants and exclusive first charge at its Dadra plant as applicable, and further secured by joint mortgage by way of deposit of title deeds of immovable properties of the company at its Kandivli and Barotiwala Plants. This excludes specified fixed assets exclusively charged in the Hire purchase agreements and Term Loans, and also excludes stock and book debts.

2] Working Capital Facilities are secured by hypothecation of all stocks and book debts and are further secured by a pari passu charge by way of joint mortgage by deposit of title deeds of the immovable properties of the company at its

Barotiwala plant.

3] Hire Purchase Credits are secured by Hypothecation of specific Assets purchased under the Scheme.

Unsecured Loans :

Fixed Deposits	10.809
Dealer Deposits	29.133
Inter Corporate Deposits	8.400
Total	48.342

Banking Relations :	Good
Auditors :	M. M. Nissim & Company Chartered Accountant
Associates/Subsidiaries :	Associates Ø Bombay Paints Limited, Ø Growel Investment Limited Ø Growel Softech Limited Ø Growel Goema (India) Private Limited Ø Digikore Design Limited Ø MPJ Builders Private Limited Ø MPJ Cement Works Private Limited Ø Ridhi Sidhi Limited Ø Bubna More & Company Private Limited Ø Radhakishan Nandial Private Limited Ø Waluj Beverages Private Limited Ø Gorav Investment Limited Ø Neeraj Exports Ø More Finance Corporation Ø Nikmo Finance Private Limited Ø Nikmo Biotech Private Limited Ø Growel Toys Ø Grauer & Well (Thailand) Limited Ø Growel Sidasa Industries Private Limited Subsidiaries Ø Poona Bottling Company Limited Ø Growel Energy Company Limited The arbitration proceedings over the dispute with Hindustan Coca-Cola Beverages Private Limited continues during the year. as a result of this and other related litigation’s forced upon the company, company was left with no alternative but to keep the bottling operations closed during the year. Ø Growel Energy Company Limited After receiving permission of Himurja, the State Nodal Agency, the project for generation of Hydro Power at Ani in Himachal Pradesh has been transferred to Growel Energy Company Limited, a fully owned ubsidiary of the company. The company is awaiting clarity on the options for sale of power after enactment of news Electricity Act, The setting up of the project can commence only thereafter.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs. 10/- Each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12787725	Equity Shares	Rs. 10/- Each	Rs. 127.877 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		127.877	102.302	102.302
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		332.008	302.120	249.092
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		459.885	404.422	351.394
LOAN FUNDS
1] Secured Loans		346.433	272.873	228.581
2] Unsecured Loans		48.342	21.903	11.382
TOTAL BORROWING		394.775	294.776	239.963
DEFERRED TAX LIABILITIES		44.692	48.787	53.423
TOTAL		899.352	747.985	644.780
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		591.883	325.807	346.094
Capital work-in-progress		0.000	189.596	58.661
INVESTMENT		8.879	3.651	3.559
DEFERREX TAX ASSETS		7.197	6.197	7.545
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	181.262	165.655	142.931
	Sundry Debtors	260.483	195.687	158.566
	Cash & Bank Balances	24.117	14.234	10.784
	Other Current Assets	0.134	0.128	0.124
	Loans & Advances	90.636	56.466	75.470
Total Current Assets		556.632	432.170	387.875
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	193.887	164.880	137.720
	Provisions	72.714	47.284	31.091
Total Current Liabilities		266.601	212.164	168.811
Net Current Assets		290.031	220.006	219.064
MISCELLANEOUS EXPENSES		1.362	2.728	9.857
TOTAL		899.352	747.985	644.780

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		1165.267	984.499	837.224
Other Income		17.660	21.368
Total Income		1182.926	1005.867	837.224
Profit/(Loss) Before Tax		82.550	70.874	44.323
Provision for Taxation				1.542
Profit/(Loss) After Tax		63.644	59.663	42.781
Total Earnings		170.110	144.290	101.990
Imports :
	Raw Materials	180.99	137.17
	Stores & Spares	0.140	3.000	102.290
	Capital Goods	2.750	3.600
Total Imports		183.88		102.290
Expenditures :
	Raw Material Consumed	648.987	533.994
	Salaries, Wages, Bonus, etc.	108.053	105.862
	Interest	29.279	19.986	792.899
	Depreciation & Amortization	26.853	22.926
	Other Expenditure	287.204	252.225
Total Expenditure		1100.376	934.993	792.899

QUARTERLY RESULTS

PARTICULARS	30.06.2006 (1^st Qtr.)	30.09.2006 (2^nd Qtr.)	31.12.2006 (3^rd Qtr.)
Sales Turnover	309.800	370.700	409.800
Other Income	4.000	3.300	7.600
Total Income	313.800	374.000	417.400
Total Expenditure	269.100	329.200	352.800
Operating Profit	44.700	44.800	64.600
Interest	9.900	10.100	11.600
Gross Profit	34.800	34.700	53.000
Depreciation	8.400	9.200	7.400
Tax	6.000	5.500	8.100
Reported PAT	17.300	21.300	31.700

200606 Quarter 1

Notes

Expenditure Includes (Increase) / Decrease in Stocks Rs (3.60) million Consumption of Raw Materials Rs 152.00 million Staff Costs Rs 27.10 million Discount & Commission Rs 35.70 million Packing Material Rs 9.90 million Other Expenditure Rs 48.00 million Tax Includes Provision for Current Tax Rs 5.50 million Deferred Tax Rs 3.10 million Fringe Benefit Tax Rs 0.50 million Status of Investor Complaints for the quarter ended June 30, 2003 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 20 Complaints disposed off during the quarter 20 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit committee and taken on record by the Board of Directors at their meeting held on July 31, 2006. 2. Bonus shares in the ratio of 1 equity share for every 4 Equity share were allotted on September 21, 2005. Accordingly the number of equity shares are adjusted for both the reporting periods for calculating the earnings per share. 3. The accounting standard 15 (revised) on Employee Benefits issued by ICAI has become mandatory w.e.f. April 01,2006. The additional liability if any will be determined and provided for at the year end. 4. Previous years figures have been regrouped and / or rearranged wherever considered necessary to make them comparable with those of current year.

200609 Quarter 2

Notes

Expenditure Includes (Increase) / Decrease in Stocks Rs 8.70 million Consumption of Raw Materials Rs 173.20 million Staff Costs Rs 29.10 million Discount & Commission Rs 44.70 million Packing Material Rs 10.90 million Other Expenditure Rs 62.60 million Tax Includes Provision for Current Tax Rs 4.80 million Deferred Tax Rs (1.30) million Fringe Benefit Tax Rs 0.70 million Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 30 Complaints disposed off during the quarter 30 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit committee and taken on record by the Board of Directors at their meeting held on October 25, 2006. 2. The Accounting Standard 15 (revised) on Employee Benefits issued by ICAI has become mandatory w.e.f. April 01, 2006. The additional liability if any will be determined and provided for at the year end. 3. Extraordinary items represents Loss on Assets Discarded. 4. Previous years figures have been regrouped and / or rearranged wherever considered necessary to make them comparable with those of current year.

200612 Quarter 3

Notes:

Expenditure Includes (Increase) / Decrease in Stocks Rs 1.90 million Consumption of Raw Materials Rs 190.90 million Staff Costs Rs 32.30 million Discount & Commission Rs 51.80 million Packing Material Rs 11.30 million Other Expenditure Rs 64.60 million Tax Includes Provision for Current Tax Rs 7.30 million Deferred Tax Rs 5.80 million Fringe Benefit Tax Rs 0.80 million Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 23 Complaints disposed off during the quarter 23 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit committee and taken on record by the Board of Directors at their meeting held on January 31, 2007. 2. The Accounting Standard 15 (revised) on Employee Benefits issued by ICAI has become mandatory w.e.f. April 01, 2006. The additional liability if any will be determined and provided for at the year end. 3. Extraordinary items represents Loss on Assets Discarded. 4. Previous years figures have been regrouped and / or rearranged wherever considered necessary to make them comparable with those of current year.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.80	0.71	0.71
Long Term Debt-Equity Ratio	0.47	0.34	0.28
Current Ratio	1.17	1.09	1.09
TURNOVER RATIOS
Fixed Assets	2.45	2.50	1.94
Inventory	8.36	7.97	6.94
Debtors	6.36	6.95	6.46
Interest Cover Ratio	4.44	5.67	3.41
Operating Profit Margin(%)	10.83	11.07	8.64
Profit Before Interest And Tax Margin(%)	8.97	9.21	6.39
Cash Profit Margin(%)	7.20	8.16	6.62
Adjusted Net Profit Margin(%)	5.34	6.30	4.36
Return On Capital Employed(%)	16.79	17.73	11.23
Return On Net Worth(%)	17.93	20.51	12.84

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.73.70
Low	Rs.72.10

LOCAL AGENCY FURTHER INFORMATION

History :

Subject was incorporated on 25^th November, 1957 at Mumbai in Maharashtra having Company Registration Number 10975.

Subject was converted into a public limited company in February 1961, which was promoted by Ramanlal Shah and Kanchanlal Shah. The company Manufactures Metal Finishing Plants, Equipment Chemicals, Buffing and Finishing Compounds, Mops, Wheels and Brushes. Its engineering division manufactures various types of plants and equipments for other industries such as Aerated Soft Drinks, Heat-Treatment Systems and other chemical plants.

To manufacture electro-chemicals the company has entered into a technical collaboration with Union Inks and Graphics Pte, Singapore.

The company had entered into technical collaboration with Enthone-OMI Inc. United States of America, and Aucos of Germany and Kabushiki Kaisha Nippon Dacro Shamrock, Japan. A joint venture agreement has been entered into with Goema GmbH of Germany to manufacture Effluent Treatment Plants and Metal Recovery Systems.

During the year 1999-2000, the company has set up a new plant at Dadra for the manufacture of chemicals which is expected to offer considerable cost advantage in meeting the demands of customers in the western and southern parts of the country. The company has entered into Technical Collaboration with Manz GmbH of Germany and Surfilco Inc of USA for assistance in design, manufacture and marketing of Plating Plants, Filters, Pumps and other products.

For setting up a Hydel Power Project at Ani in Himachal Pradesh the company conducted a feasibility study and submitted a detailed project report to HIMRUJA which is the state government agency for approving the same. The Himachal government has given permission of Himurja projet and the project has been transferred to Growel Energy company a fully owned subsidiary of the company. The company made a bonus issue in the ratio of 1:2 in 2002-03.

OPERATIONS:

The year under review saw a healthy growth in all revenue and profitability parameters. The Gross Sales of the Company grew by 16% over last year and the profit before tax kept pace with it.

NEW PLANT AT JAMMU:

The Company has taken up a plan to build another manufacturing facility at Jammu. The land has already been acquired and construction plans are under finalization, The state of Jammu & Kashmir does not only offer a low cost base for manufacturing but also offers important fiscal benefits which will help the Company increase its competitive edge.

'GROWEL's 1 Ol' - THE MALL:

The shopping and entertainment mall being set up by the Company was christened as "Growers 1 Ol". The first phase of the project was completed in September 2005. The Hyper Market viz. "Big Bazaar" opened its store in mid May, 2005 and the multiplex viz. Cinemax commenced operations in January, 2006. Work on second phase of the project has just commenced.

JOINT VENTURE In THAILAND :

The Company set up a Joint Venture company in Thailand to market and distribute its products in Thailand and other neighbouring markets. This company has commenced operations at a modest scale and should be able to serve as a window of export of their products into the South East Asian markets.

BUSINESS :

The main business of the Company is manufacturing and sale of:

Chemicals required for metal finishing, their intermediates and other specialty chemicals.

Electroplating plants, their components, effluent treatment plants and other engineering products.

With commissioning of the Shoppertainment mall during the year the Company added a new business division / segment of properly development.

During the year a healthy all round growth was registered by the Company in sales and profits. The aggregate revenues have risen by 16% and operating profits have grown by 22% from Rs. 114 Million to Rs. 139 Million In 2006.

OPPORTUNITIES, THREATS, RISKS, CONCERNS AND OUTLOOK :

Continued healthy growth in the sales and production of the Company's customer segments, particularly the automobile component industry, should continue to fuel a healthy growth in near future. The competition from national as well as international competitors is intensifying. The Company continues to associate with international manufacturers to offer the widest and latest options to its customers.

The Company has taken up a plan to build another manufacturing facility at Jammu. The land has already been acquired and construction plans are under finalization. The state of Jammu & Kashmir does not only offer a low cost base for manufacturing but also offers important fiscal benefits which will help the Company increase its competitive edge.

The second phase of Growers 101, the Shoppertainment mall at Kandivali in Mumbai is under construction and should be completed in 18 months. This phase will add another 2,50,000 sq. ft. of space to the existing 125000 sq. ft. and will greatly enhance the tenant mix of the mall making it a near complete basket.

All the chemical plants of the Company have been certified under ISO 9001:2000 and the plant at Barotiwala under ISO 14000.

EXPORTS :

Exports continue to be the main thrust of the Company's sales effort. During the year they have entered into newer geographical areas through appointment of distributors as well as direct sales. At the same time to provide a substantial resource based to the export efforts in South East Asian markets, they have set up a joint venture company in Thailand which has commenced operations albeit at a modest scale.

PERFORMANCE OF THE COMPANY:

In the chemicals segment, the growth in sales during the current year has been 16%. They expect sustained healthy growth in the range of 15-20% for the current year too. The growth in the engineering segment has been higher and they expect it to so continue. All the production units particularly the plants at Dadra and Vapi adequately coped up with the substantially increased volumes of production and sales.

The Shoppertainment Mall at Kandivli in Mumbai earned revenues from the Hyper Market and the Multiplex for a part of the year. The coming year will reflect a complete picture.

Barring unforeseen circumstances the current year is expected to achieve a moderate growth.

The company’s fixed assets of important values include Land, Building, Plant and Machinery, Laboratory and Scientific Research Equipment, Furniture, Fittings and Fixture, Office Equipments and Vehicles.

Web site Details :

For over 40 years Subject, has been synonymous with the metal finishing industry. Their trail blazing growth has resulted from a relentless commitment to research and development and the forging of global alliances that enable us offer one of the most comprehensive range of metal finishing processes, complemented by state-of-the-art equipment and plating plants

They manufacture, virtually the entire range of metal finishing chemicals, as well as all types of equipment and plating plants made to international specifications and supplied to exacting standards the world over.

Subject, is one of the very few metal finishing houses the world over, capable of offering an integrated package of chemicals, plants, effluent treatment systems and waste recovery techniques from spent solutions - Truly a ONE-STOP SHOP for end-to-end solutions.

Chemicals

They produce more than 600 different chemicals spanning one of the widest range of applications for surface treatment. In addition, they can also offer a variety of intermediates used in the manufacture of plating chemicals. Their products are well established in many parts of the world. They offer complete turnkey proposals for all types of metal finishing applications.

Engineering

Engineering plays an extremely important role in the process of plating. Modern plating plants are 'state of art machines', highly efficient and very versatile. Backed by a solid experience of over forty years, they offer a wide range of plating plants and equipments, from conventional stand alone units, to fully automatic program controlled systems; integrated with effluent treatment, waste water recovery and recirculation procedures. Be it for general plating, plating of printed circuit boards, continuous plating lines or pre-treatment/cleaning machines, their production programs can meet all the needs for surface treatment

Research and Development

It is manned by a larger team of highly qualified and experienced technocrats. The research centre of the chemical division has two main departments; one for developing new technologies connected with plating and surface finishing and the other for developing specialty chemicals and intermediates allied to metal finishing and other fields. Some of the products developed by this department have vast potential for use in metal finishing industries. Both the departments are headed by senior, highly qualified research scientists possessing considerable experience and having many ‘firsts’ to their credit. The development work in the Engineering Division is carried out by an independent team of engineers with the aid of computer aided design system.

They have well equipped library facilities to update reference material, periodicals, current journals and standards of Indian and International origin. Their experts gather relevant references from the finest libraries, such as the Indian Institute of Technology, Mumbai University, Department of Chemical Technology, National Chemical Laboratories etc.

New research facilities are provided by housing a computer centre with terminals, feeding various sections of the research centre, which give access to International Information on latest technologies, processes and products. At Growel, research and development means large-scale investment to support innovative ideas. Their R&D department envisages projects, evaluates, implements in their own laboratories and engineers them into new processes.

Their R&D technologists gain experience, expertise and recognition from their own research and from know-how from International partners, Associates, International Conferences, Exhibitions and Seminars. R&D is the basis for on going optimization of their core technologies; Nickel, Chrome, Zinc, Copper Tin and its Alloys, Precious Metals, Electronic Chemicals etc. More emphasis is given to develop Eco-friendly processes and products used for pre-treatment, plating, passivation and post passivation, helping us to maintain their competitiveness and technological leadership

Their process engineers are in constant contact with their customers. They introduce new processes / products into existing plants only after they undergo repeated testing in their own laboratories, pilot plant – resulting in economic viability and greater market acceptance.

R&D Laboratories attach great importance to the smooth integration of quality testing, production methods and packaging systems of newly introduced 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.41.07
UK Pound	1	Rs.81.69
Euro	1	Rs.55.84

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	NO
--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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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