MIRA INFORM REPORT

Report Date :

15.12.2007

IDENTIFICATION DETAILS

Name :	GUJARAT AMBUJA EXPORTS LIMITED
Registered Office :	Ambuja Tower, Opposite Memnagar Fire Station, Post Navjivan, Ahmedabad – 380014, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	21.08.1991
Com. Reg. No.:	016151
CIN No.: [Company Identification No.]	L15140GJ1991PLC16151
TAN No.: [Tax Deduction & Collection Account No.]	AHMG00194F
PAN No.: [Permanent Account No.]	AAACG3980A
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer and Supplier of products of cotton yarn.

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 12137600
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track records. Trade relations are fair. Payments are usually correct and as per commitments. Financial position is satisfactory. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered / Corporate Office:	Ambuja Tower, Opposite Memnagar Fire Station, Post Navjivan, Ahmedabad – 380014, Gujarat, India
Tel. No.:	91-79-26405535 / 37 / 39 / 26423316
Mobile No.:	91-9825095185
Fax No.:	91-79-26423079 / 26423079
E-Mail :	info@ambujagroup.com vaishnav@ambujagroup.com
Website :	http://www.ambujagroup.com
Area :	Owned
Branch Office 1:	Mumbai 17, Anjani Complex, Ground Floor, Pereira Hill Road, Opp. Gurunanak Petrol Pump, Chakala, Off. Andheri – Kurla Road, Andheri (E), Mumbai – 400099, Maharashtra, India
Tel. No.:	91-22-28356497
Fax No.:	91-22-28356493
E-Mail :	bby@ambujagroup.com
Branch Office 2:	New Delhi 208, Deep Shikha Building, Rajendra Place, New Delhi – 110008, India
Tel. No.:	91-11-25745761
Fax No.:	91-11-25763819
E-Mail :	ndel@ambujagroup.com
Branch Office 3:	Indore 126/129, Starlit Tower, 29 Y.N.Road, Opp. State Bank Of Indore (H.O.), Indore – 452001
Tel. No.:	91-731-4040225/26/27 / 4082182
Fax No.:	91-731-2436477
E-Mail :	indore@ambujagroup.com
Branch Office 4:	Akola Narmada Sadan, 1^st Floor, New Radhekrishna Plot, Gurudwara Road, Akola – 444001, Maharashtra, India
E-Mail :	akola@ambujagroup.com
Branch Office 5:	Vietnam Mr. Nguyen Quoc Tuan Business Development Officer, Rmmo 420, Hanoi Press Club Building, 59 A, Ly Thai to Street, hanoi S. R. Vietnam
Tel. No.:	91-84-4-9364590
Fax No.:	91-84-4-9364577
PLANTS
Address:	100% EOU Cotton yarn Division 1, Vrindavan Road, Village:Dalpur, Taluka:Prantij, District:Sabarkantha, Gujarat
Tel. No.:	91-2772-226252 / 54
Fax No.:	91-2771-226250 / 52
E-Mail :	cotspin@ambujagroup.com corn@ambujagroup.com
Address:	Soya Processing Unit Plot No. 414/417, Sector-III, Pithampur Industrial Area, District:Dhar, Madhya Pradesh,
Tel. No.:	91-7292-256790/256264
Fax No.:	91-7292-256199
E-Mail :	Soyapith@ambujagroup.com
Address:	Maize Processing Unit 1, Vrindavan Road, Village:Dalpur, Taluka:Prantij, District:Sabarkantha, Gujarat
Tel. No.:	91-2772-226252/54
Fax No.:	91-2772-226252
E-Mail :	corn@ambujagroup.com
Address:	Solvent Extraction, Refinery, Wheat Flour, Cattle Feed Units Kadi Complex Kadi – Thore Road, Kadi, Dist. Mehsana, Gujarat
Tel. No.:	91-2764-264013/17
Fax No.:	91-2764-264012
E-Mail :	soyakadi@ambujagroup.com
Address:	Akola Soya Processing and Refinery Village Kanheri-Gawali, N.H. No.: 6, Akola-Balapur Road, District – Akola, Maharashtra, India
Tel. No.:	91-7257-285026/285027
Fax No.:	91-7257-285025
E-Mail :	akola@ambujagroup.com
Address:	Vietnam Office 14^th Floor, Suite 1420, Level 13F-14F, North Asia Tower, No.9 Dao Duy Anh Street, Dong Da District Hanoi, Vietnam
Tel. No.:	91-84-45771711
Fax No.:	91-84-45771720
Address:	Maize Processing Unit C-50, Eldeco Sidcul Industrial Park, Sitargang District:Udhamsingh Ngar – 263153, Uttranchal
Tel. No.:	91-5948-260564
Fax No.:	91-5948-260564
Email:	ua@ambujagroup.com

DIRECTORS

Name :	Mr. Vijay Kumar Gupta
Designation :	Managing Director and Chairman
Address :	8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad – 380009
Date of Birth/Age :	01.07.1949
Qualification :	Bachelor of Indental Services [B.IS.]
Name :	Mr. Manish V. Gupta
Designation :	Managing Director
Address :	8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad – 380009
Date of Birth/Age :	18.09.1971
Qualification :	B. Com.
Name :	Mr. Parshottam G. Makhija
Designation :	Executive Director
Address :	F – 2, Pemanand Apartments, Opposite Punjabi Hall, Navrangpura, Ahmedabad – 380009, Gujarat, India
Date of Birth/Age :	23.11.1958
Qualification :	M. Com. L.L.B., ACS, CAIIB-1
Name :	Mrs. Sulochana V. Gupta
Designation :	Director
Address :	8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad – 380009
Date of Birth/Age :	01.11.1953
Qualification :	Under Graduate
Name :	Mr. Jagdish Sharan Varshneya
Designation :	Director
Address :	21, Jayshree, 75 Worli Sea Face, Mumbai – 400025
Date of Birth/Age :	08.07.1929
Qualification :	M. Com. LLB
Name :	Mr. Chaitan M. Maniar
Designation :	Director
Address :	Garden House, Dadyseth, 2^nd cross Lane, Chowpatty Bandstand, Mumbai – 400007
Date of Birth/Age :	04.12.1935
Qualification :	B. Com. LLB, MA
Name :	Mr. Prakash G. Ramrakhiani
Designation :	Director
Address :	Block No. 154, Sector – 8, Gandhinagar – 382008
Date of Birth/Age :	25.11.1940
Qualification :	B.A. [Hons], M.A. [Eco], IAS
Name :	Mr. Ashok C. Gandhi
Designation :	Director
Address :	2, Prabhat Society, Paldi, Ahmedabad – 380007
Date of Birth/Age :	04.12.1939
Qualification :	B. Com. LLB
Name :	Mr. Sandeep N. Agarwal
Designation :	Director
Address :	402, Gold Residency, 7/2, Manotamaganj, Indore – 452001
Date of Birth/Age :	12.12.1971
Qualification :	B. Com. [Hons], MBA
Name :	Mr. Rohit J. Patel
Designation :	Director
Address :	22.02.1946
Date of Birth/Age :	7, Anand park Society, Near Naranpura Bus Stand, Nanarnpura, Ahmedabad – 380013
Qualification :	B. E. [Electrical]
Name :	Mr. Mohit V. Gupta
Designation :	Director
Address :	8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad – 380009
Date of Birth/Age :	20.11.1981
Qualification :	B. Com., Diploma in IBM, HRM, FBM and Diploma in computer Information Systems

KEY EXECUTIVES

Name :	Mr. Kaushik C. Khona
Designation :	Chief Financial Officer and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2007

Names of Shareholders	No. of Shares	Percentage of Holding
Category of Shareholder
Shareholding of Promoter and Promoter Group^2
Indian
Individuals/ Hindu Undivided Family	87928820	63.208
Public shareholding
Institutions
Mutual Funds/ UTI	6132450	4.408
Financial Institutions ^/Banks	20148	0.015
Foreign Institutional Investors	7555823	5.432
Non-institutions
Bodies Corporate	1878504	1.350
Individuals
Individuals -i. Individual shareholders holding nominal share capital up to Rs 0.100 Million	35010470	25.168
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	569034	0.409
Any Other (specify)	14049	0.010
Total	139109298	100

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of products of cotton yarn.
Products:	Iteam Code No.(ITC Code) Products Depreciation 150790.10 Refined Soyabeanoil 110812.00 Maize Starch 110100.00 Wheat Flour 520523.10 Cotton Yarn
Agencies Held :	Gujarat Ambuja International pte Limited Singapore [WOS ]
Exports :
Products :	Cotton Yarn, Maize Products and De-Oiled Cakes
Countries :	Korea Taiwan Israel Egypt Vietnam Malaysia Singapore Indonesia Bangkok Sri Lanka Dubai Saudi Arabia
Imports :
Products :	Degummed Soyabean Oil Furnace Oil Furnace Oil Crude Palm Oil Raw Cotton
Countries :	USA China Australia Middle East Europe Netherlands Brazil Switzerland Singapore UAE Indonesia Malaysia
Terms :
Selling :	L/C and Cash
Purchasing :	L/C, Cash and Credit [30 days]

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Solvent Extraction Unit	TPA		990000
Vanaspati Unit	TPA		30000
Refining of any kind of oil	TPA		360000
Maize Based Starch, Seed Crushing	TPA		175000
Wheat Products	TPA		112500
100 % E.O.U. Cotton Spinning Unit Ring Spun Yarn	TPD		44
Power generation Unit [Wing Mills]	M W		6.95
Particulars	Unit	Actual Production
Agro Processing Division
Food Products
Chemicals and Allied products	M.T.		153157.109
Extractions and Derivatives	M.T.		63641.950
Cotton Yarn Division
Cotton Yarn	M.T.		742412.675
Others
Windmill Division
Power Generation Unit	Unit		8497331.00

GENERAL INFORMATION

Suppliers :	Concordia Trading BV Bunge Agribusiness Singapore Pte Limited Glencore International AG Noble Grain Pte Limited Swiss Singapore Overseas Pte Limited Agritrade International Pte Limited Inter Continental Oils and Fats Pte Limited Cargill Cotton Ecom USA Dunavant Enterprises Inc.
Customers :	Wholesalers and Retailers Ø Hans Company Limited Ø Yangtex S. A. Ø Shinsung Tongsang Company Limited Ø Chutey TIV Limited Ø Cairo Cotton Center Ø B. J. Hong Ø Asia Nutrition Ø Proactive Synegies Ø Cargill International Trading Pte Limited Ø Toepfer International Asia Pte Limited Ø Bung Agribusiness Singapore Pte Limited Ø Pt. Nakita Ø Com Inter Company Limited Ø Hayleys Industries Ø House of Chemicals Ø United Feed Industries
No. of Employees :	5175 [In Office : 150; In Factory : 5000; In Branch : 25]
Bankers :	Bank of India, Ahmedabad Corporate, Banking Branch, 2^nd Floor, BOI Building, Bhadra, Ahmedabad - 380001 Punjab National Bank, Ambawadi Branch, Ground Floor, Harikrupa Tower, Ambawadi, Ahmedabad - 380006 Union Bank of India, Industrial Finance branch, C. U. Shah College Building, Ashram Road, Ahmedabad - 380009
Facilities:	SECURED LOANS Rs.in Millions Terms Loan (31.03.2007) (I) from Indian Renewable Energy Development Agency, 34.900 New Delhi (secured by hypothecation of Wind Mills, mortgage of related land & personal guarantee ol three ' promoter Directors.) (II) from Bank of India, under TUF scheme secured 237.500 by hypothecation of specific movable Plant 8 Machinery & personal guarantee ol three promoter Direciors. Total 272.400
	Other Loans - Working Capital Secured by a hypothecation o! current assets 8 certain tangible movable plant & machinery and joint equitable mortgage of certain immovable fixed assets of the Company and personal guarantee, mortgage and security of certain personal assets of three promoter directors and againsl lien on Fixed Deposits of Ihe Company. - From Banks 1557.500 1829.900 UNSECURED LOANS Dealers' 8 Distributors' Deposits 7.900 7.900

Banking Relations :	Satisfactory
Auditors :
Name :	Kantilal Patel and Company Chartered Accountants
Address :	2^nd Floor, Paritosh Building, Usmanpura, Ahmedabad – 380013
Tel. No.:	91-79-27551333 / 27552333
Fax No.:	91-79-27550538
E-Mail :	services@kpcindia.com
Associates/Subsidiaries :	GUJARAT AMBUJA INTERNATIONAL (P) LIMITED #11-11 Tong Eng Building, 101-Cecil Street, Singapore-069533 Phone: 00-65-63243701, 63243702 Fax: 00-65-63243697 Email: intl@ambujagroup.com

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.2/-each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
139318490	Equity Shares	Rs.2/-each	Rs.278.636 Millions

Notes:

i. Includes 31500000 Equity shares of Rs.2/- each issued at a premium of Rs.0.20 per'share orvconversion of Optionally Convertible Unsecured Debentures

ii. Includes 82188910 Equity shares of Rs.2/- each fully paid alloted on 30.4.99 in exchange of shares on amalgamation lor consideration other than cash,

iii. 31085420 Equity shares of Rs.2/-each reduced as per Scheme of arrangement approved by Honourable Gujarat High Court order dated 17th February 2003.

iv. Includes 20490000 Equity Shares of Rs.2/- each fully paid, alloted on 31 1.2004 in exchange of shares on amalgamation for consideration other than cash.

Explanation to Notes :

Til! 16th January 2006, the Company's paid up Capital was made up of Equity Shares of Rs. 10/- each which was then split into Equity Shares ol Rs.2A each. In the above notes the number of shares and premium is restated as related to Equity shares of Rs. 2/- each.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		278.600	278.600	278.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2755.800	2346.900	2081.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3034.400	2625.500	2360.500
LOAN FUNDS
1] Secured Loans		1829.900	2110.700	1172.800
2] Unsecured Loans		7.900	8.200	9.600
TOTAL BORROWING		1837.800	2118.900	1182.400
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4872.200	4744.400	3542.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2347.800	2191.400	1708.400
Capital work-in-progress		277.000	2.800	1.500
INVESTMENT		91.800	68.700	72.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2170.700	2271.500	1284.700
	Sundry Debtors	666.600	660.300	609.400
	Cash & Bank Balances	144.100	45.400	671.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	102.400	33.500	80.100
Total Current Assets		3083.800	3010.700	2645.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	838.800	447.400	830.700
	Provisions	89.400	81.800	54.300
Total Current Liabilities		928.200	529.200	885.000
Net Current Assets		2155.600	2481.500	1760.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4872.200	4744.400	3542.900

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		14104.400	12873.400	11257.600
Other Income		21.900	53.100	24.500
Stock Adjustment		306.300	241.200	(282.000)
Total Income		14432.600	13167.700	11000.100
Profit/(Loss) Before Tax		698.200	455.000	309.800
Provision for Taxation		230.700	151.900	40.700
Profit/(Loss) After Tax		467.500	303.100	269.100
Earnings in Foreign Currency :
Export Earnings		5109.700	3873.800	0.000
Other Earnings		0.000	0.000	0.000
Total Earnings		5109.700	3873.800	0.000
Imports :
Stores & Spares		7.800	3.100	0.000
Capital Goods		39.500	329.700	0.000
Others		771.400	3343.400	0.000
Total Imports		818.700	3676.200	0.000
Expenditures :
	Raw Material Consumed	11532.000	10874.900	8879.500
	Excise Duty	115.200	51.900	116.000
	Power and Fuel Cost	526.500	434.200	399.500
	Other Manufacturing Expenses	153.200	146.000	166.300
	Employee Cost	211.600	196.900	161.000
	Selling and Administration Expenses	845.200	638.600	643.700
	Micellaneous Expenses	0.500	10.200	4.700
	Interest and Financial Charges	99.200	122.300	83.800
	Depreciation	251.000	237.700	235.800
Total Expenditure		13734.400	12712.700	10690.300

QUARTERLY RESULTS

PARTICULARS	30.09.2007	30.06.2007
	2^nd Quarter	1^st Quarter
Sales Turnover	3749.400	3539.900
Other Income	6.500	0.000
Total Income	3755.900	3539.900
Total Expenditure	3371.600	3224.700
Operating Proft	384.300	315.200
Interest	23.400	21.100
Gross Profit	360.900	294.100
Depriciation	80.100	79.800
Tax	30.400	30.400
Reported PAT	185.800	141.100

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.70	0.66	0.72
Long Term Debt-Equity Ratio	0.07	0.03	0.02
Current Ratio	1.21	1.25	1.27
Turnover Ratio
Fixed Assets	3.77	4.01	4.42
Inventory	6.35	7.24	6.60
Debtors	21.26	20.28	16.28
Interest Cover Ratio	8.04	4.72	4.70
Operating Profit Margin(%)	7.43	6.33	5.59
Profit Before Interest And Tax Margin(%)	5.65	4.48	3.50
Cash Profit Margin(%)	5.09	4.20	4.48
Adjusted Net Profit Margin(%)	3.31	2.35	2.39
Return On Capital Employed(%)	16.58	13.93	10.21
Return On Net Worth(%)	16.52	12.16	12.00

LOCAL AGENCY FURTHER INFORMATION

DIVIDEND

Considering improving performance, the board has decided to recommend a higher dividend of 18% p.a. (Rs.0.36 per share of Rs. 2 each) as against dividend paid Rs. 0.24 per share (12% p.a.) last year.

The total cash outflow would be Rs. 58.778 Millions (including Rs.8.524 millions l of dividend distribution tax) as against cash outflow of Rs. 38.126 Millions (including Rs. 4.689 Millions of dividend distribution tax) paid last year.

The dividend will be paid to the members whose names appear on the register of members on 25th September, 2007 and for those members holding shares in the dematerialized form, as per data of beneficiary shareholders for the said purpose provided by depositories, subject to the approval at the ensuing Annual General meeting.

BUY-BACK OF EQUITY SHARES FROM OPEN MARKET

The Board of Directors at its meeting held on 16th January,2007, approved the buy back of equity shares of the Company from Open Market through Stock Exchange Method for an amount not exceeding Rs.262.500 Millions ('Offer size") i.e. 10% of Issued, Subscribed and Paid up equity share capital of Rs. 278.600 Millions and Free Reserves of Rs.2346.900 Millions which aggregates to Rs.2625.500 Millions based on the audited accounts as on March 31, 2006 at the maximum price not exceeding Rs.38/- ("Maximum Buy-Back Price") per Equity Share of Rs.2/- each from existing shareholders and Beneficial owners of the shares of the Company from the Open Market through stock exchanges pursuant to Article 4 of the Articles of Association of the Company and in accordance with the provisions of Sections 77A, 77AA, 77B and other applicable provisions of the Companies Act, 1956 ("the Act") and Securities and Exchange Board of India (Buy back of Securities) Regulations, 1998 ("the Regulations"). The Buy-back is with a view to reduce outstanding Equity Shares, to optimize the return on Equity, to optimize the EPS and to enhance overall shareholders' value.

The buy-back of equity shares from open market through stock exchange route through bombay stock exchange Limited ("BSE") and the national stock exchange of India limited ("NSE") (together the "stock exchanges") using their nationwide electronic trading facilities, after, undergoing required formalities for sanctions/approvals/exemptions and after giving required public notice and public announcement, commenced from 16th April,2007. The last date for the present buy-back is the earliest of January 15, 2008 or when the company has completed Buy back to the extent of Rs. 262.500 Millions under the buy back or such other date as may be determined by the company at anytime even if the maximum limit of buy back of shares

has not been reached (by giving appropriate notice for such earlier date, if any).

Upto the date of this report, the company has bought back 1,88,692 equity shares of Rs..2/- each out of which 1,80,959 equity shares of Rs.2/- each have been extinguished by following required formalities and procedure and thereby reducing the paid up capital of the company from 13,93,18,490 equity shares of Rs.2/- each aggregating to Rs. 278.6,369 Millions to 139.137Millions equity shares of Rs.2/- each aggregating to Rs.278.275 Millions

PERFORMANCE REVIEW FOR THE YEAR 2006-07

During the year 2006-07 the company has been able to achieve Earning Before Interest Depreciation and Taxation (EBITDA) of Rs. 1030.000Millions for the first time in its history. The company expects to improve this

performance in the coming years.

The top line of the company has improved from Rs. 12870.000 Millions last year to Rs. 14100.000 Millions registering a growth of more than 9%.

While EBIDTA of the company has improved from Rs. 770.000 Millions to Rs. 1030.000 Millions registering a growth of almost 34%. The profit after tax and corresponding EPS has registered a growth of 54%.

The above improvement in the performance is backed by improvement in operations in all segments.

The performance of Maize Processing division, the Cotton Yarn division, the windmills division as well as Agro Processing division has been better.

CAPITAL PROJECTS FOR THE YEAR 2006-07

Modernization at Maize Processing Division at Himatnagar

The company carried out upgradation of the facilities at the maize processing division at himatnagar by modernizing various sections including major critical equipments, effluent treatment plants as well as equipments in the derivative section. Besides investments have also been made in improving micro biological laboratory and quality control equipments. All this has improved operational performance of the division during the year under consideration.

The company has been able to get its product approved by many reputed FMCG and multinational companies for sorbitol, malto dextrine powder, dextrose monohydrate, liquid glucose and starches.

Modernization at various other locations

The company also improved its utilities by re-engineering, modernizing and upgrading the effluent treatment plants, captive powerp and various critical equipments at its solvent division at kadi in gujarat, pithampur in madhya pradesh and akola in maharashtra as well as cotton yarn division at himatnagar in gujarat.

The company has been able to improve the performance, efficiency and productivity at all plants.

Windmills

During the financial year 2006-07, the company further invested a sum of more than Rs. 158.300 Millions to set up 3 (three) Windmills of the total installed capacity of 3.30 MW. All these windmills have become operational and have started generating wind energy. With this investment, the company has now total 7 (Seven) windmills with total installed capacity of 6.95 MW. All these windmills are set up in Gujarat. The company has projected a total pay back period of less than 6 years for the above investments.

OPERATIONAL PERFORMANCE

Maize processing division

The year 2006-07 was a great year for the maize processing industry. The company also witnessed improved performance.The demand for the products witnessed significant growth and inspite of Maize prices increasing by almost 30-35%, the company was able to pass on the burden to the end consumers. The company has been able to get its product and quality, approved from many multinational companies and also FMCG companies which has assured the growth in the years to come.

The division witnessed growth of almost 25% on the top line. The EBITDA margins of this division went up significantly high from 16% in last year to almost 20% this year and these high margins are continuing even this year. Considering the growing importance of this division and its contribution to the top line and bottom line, the board decided to report this division as separate segment from this year.

Agro Processing Division

The company's agro processing division includes solvent extraction of edible oil seeds, edible oil refining, wheat processing and cattle feed manufacturing. During the year under consideration the company recorded its highest crushing of edible oil seeds/ cakes and also witnessed its highest export performance. The overall top line of this segment grew by only 5% but the operation of solvent extraction was higher by almost 75%. The imports of crude edible oils were lower as for most part of the year they were not profitable.

There was overall improvement in the margins in view of the improved plant efficiency and better export realization.

Cotton Yarn Division

The company's cotton Yarn division has been a consistent performer and it has registered an increase in volumes by almost 30% during the year under consideration in view of additional 13000 spindles added in the March, 2006. The over all top line.registered increase, of 27%. The margins were in the range of 16% to 22% in the first three quarters. But the margins fell sharply to 10% in the last quarter in view of the overall market conditions.

Generally, the company was also able to improve its operational efficiency by increasing productivity through modernization of plants andequipments and the company was able to increase profitability by reducing the cost of electricity by producing more cost effective count of cotton yarn.

The margins for the 1st quarter in the year 2007-08 have improved a bit but that is mainly due to better dollar realizations in view of the exports booked in forward forex market last year when the rates were better.

Windmills

The company has windmills with total installed capacity of 6.95 MW and the performance of the windmills has been satisfactory.

On over all Analysis

On over all analysis, the performance of the company for the year under consideration has been better as compared to that of last year. With the increased profitability and the measures taken for reducing the cost and also to improve realizations by way of improving product mix and quality consciousness, the company hopes to improve its performance further for the year 2007-08.

OUTLOOK FOR THE YEAR 2007-08

The year has begun well and in the first quarter ended on 30th June, 2007, the company registered a turnover of Rs. 3540.000 Millions as against the turnover of Rs. 3020.000 Millions of the corresponding period last year registering a growth of 17%.

During this period the company has registered a EBITDA of 8.91% at Rs. 315.200 Millions as against EBITDA of 7.84% at Rs. 23690.000 Millions during the corresponding period last year. The cash profit was at Rs. 294.100 Millions

as against Rs. 216.700 Millions ring the corresponding period last year.

Net profit profit after tax was at Rs.141.100 Miilions as against Rs. 94.300 Millions in the corresponding period last year registering a growth of 50% to clock the EPS at 1.01 for this period of 3 months on the equity share of Rs. 2/- each.

With a good beginning the company expects to improve over all operating margins and expects to report an improved performance for the year 2007-08.

OTHER INFORMATION

Contingent liabilities not provided for in respect

Particulars	2006-07	2005-06
Claims against the Company /disputed liabilities not acknowledged as debts	69.900	65.400
Disputed Excise duty, Sales Tax. Motor Spirit Tax, Income Tax Claims	214.600	138.100
Estimated Amount of Contract Pending execution on Capital Account [Net of Advances of Rs. 72.600 Millions]	431.400	14.600
Letter of Credit & Bank Guarantee [Net of Margin Money Rs. 102.200 Millions and discharged since then)	252.700	100.800
Corporate guarantee in favour of Bank on behalf of wholly owned subsidiary	129.300	133.400
Gujarat Ambuja International Private Limited	(US $ 3Mn)	(US $ 3Mn)

Note: Outflow in respect of above disputes/Contingencies is dependent upon final outcome of the disputes or ultimate agreement to resolve the differences.

Fixed Assets:

• Free Hold Land
• Lease Hold Land
• Factory Building
• Non factory Building and colony
• Plant and Machinery
• Wind Mill
• Electric Supply Systems
• Vehicles
• Furniture and Fixtures
• Office Equipments
• D. G. Set
• Temple
• Factory Road
• Effluent Treatment Plant
• Trade Mark
• Capital Work in Progress
• Capital Advance

The company is in the Agro processing and ring Spinning Yarn business. The company is in this line of business since 1987. Over a period of last 21 years, their company has made consistent progress and today they are rated amongst the top 100 Corporates in India.

They are in the business of agro processing activities and ring spinning cotton yarn. In agro processing activity, they have state of art manufacturing plant in the state of Gujarat, Madhya Pradesh and Maharashtra. In this segment. They are engaged in Solvent Extraction, Refining of Edible Oil and Vanaspati, Maize Processing, Wheat Flour Mill and Cattle Feed activities. All t he plants are having large capacity to process the agro produce.

In Ring Spinning project, they have sate of art spinning cotton yarn project in the state of Gujarat. It has more than 74000 spindles and produce around 44 ton of cotton yarn every day. This plant is 100 % EOU and is operational since last 13 years.

In respect to future programmes, they are setting up another Maize processing unit at Sitarganj in the state of Uttarakhand. The plant is expected to be operational by January, 2008. The total capital investment in this project is around Rs. 700 Millions, which is entirely going to be funded from internal accruals.

They also have wholly owned subsidiary at Singapore namely, Gujarat Ambuja International Pte Limited. This subsidiary is assisting the company to look after the international business.

Website details:

Cotton Yarn Exporter:

Subject Leading Cotton Yarn Exporter in India. They are one of the best manufacturer and supplier of products of cotton yarn in India. They are specialized in Gujarat and their services are in all the parts of India.

Subject is India's major manufacturer and exporter of maize starch, liquid glucose, malto dextrin, dextrose monohydrate, sorbitol 70% solution, white/yellow dextrines, non GMO liquid soya lecithin, defatted soya flour toasted and untoasted, defatted soya flakes toasted and untoasted, full fat soya flour enzyme active and inactive, hipro soyabean meal, deoiled cakes, rapeseed meal, castor meal, groundnut meal, cotton cake, eedible oils, bakery shortening, cotton yarn, wheat flour and cattle feeds from www.ambujagroup.com

The Group

Subject is principally involved in agro- processing and has focused on exports, competing in the global market.

The Mission

Their core competence is in exports and international business. They are committed to be one of the largest exporter of quality products. They are aware of India's locational and resource advantages and would endeavtheir to turn them into opportunities to fuel the Group's growth.

The Vision

They foresee subject to be a leading Indian company providing good quality products and world class services at affordable prices. They shall therefore focus our efforts at minimising the costs and maximising the customer satisfaction.

Milestones

Excellent Projects

• 100% Export Oriented Unit for Cotton Yarn Spinning.
• ISO 9001 certification to Soya Processing plants at Kadi.
• All the plants are set up recently with latest technology and state-of-the-art equipments and are fully equipped with complete infrastructure.
• Sourcing requirement of all Important Inputs like Cotton, Maize Grain by sourcing locally and by importing from various countries like USA, China, Australia, Middle East and European countries.
• Captive Power generation ensuring affordable, uninterrupted and good quality power at all manufacturing plants
• Soya Processing Plants having 2nd highest crushing capacity in India

Meritorious Achievements

• Recipient of award for the second largest manufacturer exporter of Soya meal for three consecutive years
• Rated amongst top thirty exporters
• Rated amongst top 500 performing companies by business magazines for 3 consecutive years
• Received Export house status in the first year of operations. Thereafter upgraded to Trading House on the basis of constantly improving export performance
• Recipient of the Highest Exporter Awarded for Rapeseed extraction for two consecutive years.
• Cotton Spinning Division : Recipient of the Excellence Awarded conferred by the Institute of Economic Studies, New Delhi and the Highest Awarded in textile sector conferred by Kandla SEZ

Excellent Corporate

• Net worth of more than Rs. 2600.000 Millions fully backed by Fixed Assets of more than RS 3500.000 Millions
• No long term Debt.
• Young and Energetic Team led by CEO at each plant & professional Board of Directors.

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.39.35
UK Pound	1	Rs.80.36
Euro	1	Rs.57.62

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	NO
--LISTED	YES/NO	NO
--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.	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