MIRA INFORM REPORT

Report Date :

03.11.2007

IDENTIFICATION DETAILS

Name :	GUJARAT INSECTICIDES LIMITED
Registered Office :	Plot No. 805/806, GIDC Estate, Ankleshwar – 393 002, District- Bharuch, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	30.08.1980
Com. Reg. No.:	04-003929
CIN No.: [Company Identification No.]	U24299GJ1980PTC003929
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00760E
PAN No.: [Permanent Account No.]	AAACG8436D
Legal Form :	Subject is a closely held public limited liability company. The company is a subsidiary of Gharda Chemicals Limited
Line of Business :	Manufacturers of Insecticides, Intermediate and Formulations, Agro Chemicals.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2818628
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company. Available information indicates high financial responsibility of the company. Financial position is good. Reserve position is strong. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. Mr. Choksi of the company remained non – co – operative and declined to part with any information.

LOCATIONS

Registered Office :	P. B. No.805-806, GIDC Estate, Ankleshwar – 393 002, District Bharuch, Gujarat, India
Tel. No.:	91-2646-220032/ 222271/ 223914/ 250305/ 251472
Fax No.:	91-2646-238465
E-Mail :	ghardaankl@gharda.com giled@sntpl.net.in giledp@vsnl.com it@gilgharda.com giledpad1@sancharnet.in
Website :	http://www.gharda.com
Area :	73084 sq. ft.
Location :	Owned
Head Office :	8, Darshan Society, M. P. Desai Marg, Near Sardar Bhavan, Navrangpura, Ahmedabad – 380 009, Gujarat
Tel. No.:	91-79-26421760
Corporate Office:	5 / 6 Jer Mansion, WP Warde Road, off Turner Road, Bandra ( West), Mumbai – 400 050, Maharashtra, India
Tel. No.:	91-22-26452492 / 26422230 / 26430654
Fax No.:	91-22-26404224 / 26514313
Branches :	Plot No. 2, Block No. 43, Autonagar, Hyderabad – 500 070, Andhra Pradesh Tel. No.: 91-40-2402 7582 Fax No.: 91-40-2402 7582 / 2780 8543 5-6, Jer Mansion, 1^st Floor, Plot No. 12, V. P. Varde Road, Off Turner Road, Bandra (West), Mumbai – 400 050, Maharashtra Tel. No.: 91-22-26452492 /2645 2493/26405466/2415 Fax No.: 91-22-2640 4224/26418353 518, Ansal Chambers II, Bhikaji Cama Place, New Delhi Tel. No.: 91-11-2560 3313/26177010 Fax No.: 91-11-2551 3697/26195339 No. 7, 7^th Cross Street West, Shenoy Nagar, Chennai – 600030, Tamilnadu, India Fax : 91-44-26260715
Overseas Office :	Holbrook House, 72, Lower Addiscombe Road, Croydon, CR9 6 AD, England Tel.: 44-208-655-4103 Fax : 44-208-655-4102 660, Newtown, Yardley Road, Suit 106, Newtown, PA 18940 Tel.: 1-215-9689474 Fax : 1-215-9689574 628, Pacific Highway, Saint Leonards NSW 2065, Australia Tel: 00-612-9966-9446br Fax : 00-612-9966-9779

DIRECTORS

Name :	Mr. Vinayak Bajirao Buch
Designation :	Director
Address :	Jhankar Plot No. 139, Sector 8, Ghandinagar – 382 043, Gujarat
Date of Birth/Age :	21.02.1940
Date of Appointment :	27.11.1993
Name :	Mr. Keki Hormusji Gharda
Designation :	Managing Director
Address :	5, 6, Jer Mansion, 10, W. P. Warde Marg, Bandra (West), Mumbai – 400 050, Maharashtra
Date of Birth/Age :	25.09.1929
Date of Appointment :	01.04.2004
Name :	Mr. Hoshang Cooverji Patel
Designation :	Director
Address :	50, Kothnur Bagalpur Road, Bangalore – 560 077, Karnataka
Date of Birth/Age :	08.03.1934
Date of Appointment :	02.09.1994
Name :	Mr. Somaiya Jitendra Parshottam
Designation :	Director
Address :	9, Lovenet, Dreamland Society, Shastrinagar, Mulund, Thane, Mumbai – 400 082, Maharashtra
Date of Birth/Age :	10.07.1941
Date of Appointment :	31.12.1990

KEY EXECUTIVES

Name :	Mr. A. D. Buch
Designation :	Company Secretary
Name :	M/s Kapoor and Ved
Designation :	Company Secretary
Address :	208, Sudarshan Complex, Near Mithakhali Underbridge, Navrangpura, Ahmedabad – 380 009, Gujarat

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Gharda Keki Hormusji	10
Mrs. Somaiya Jitendra Purshottam	10
Gharda Chemicals Limited	487520
Gharda Investment Syndicate	162500
Mr. Hoshang Cooverji jointly with Gharda Chemicals Limited	10
Mrs. Aban Gharda jointly with Gharda Chemicals Limited	10
Maroo Udayan Arvind jointly with Gharda Chemicals Limited	5
Panikker P.A. jointly with Gharda Chemicals Limited	5

Equity Share Break – up: (Percentage of Total Equity):

Sr. No.	Category	Percentage
1	Directors or relatives of Directors	0.01

BUSINESS DETAILS

Line of Business :

Manufacturers of Insecticides, Intermediate and Formulations, Agro Chemicals.

Products :

Item Code No.	Product Description
380810	Insecticides [T], Intermediates and its Formulations

Exports :

Countries :

UK, Singapore, Thailand, Argentina and Belgium

Imports :

Products :

Raw Materials and Spares

Countries :

USA, Europe and Japan

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Insecticides [T]	2230 MT	657.3
Intermediates	1800 MT	2307.8
Formulations	300 MT	255.4
Formulations	3500 KL	1936.4

GENERAL INFORMATION

Suppliers :

• Albright and Wilson Americas, Virginia, USA
• Occidental Chemical Corporation, New York, USA
• PPG Industries Inc. Pittsburg, USA
• Chigai Shoji Company Limited, Tokyo, Japan

No. of Employees :

561

Bankers :

Bank of Baroda, Industrial Estate Branch, GIDC Estate, Ankleshwar – 393 002, Gujarat

Facilities :

SECURED LOANS :	As on 31.03.2005 [Rs. in Millions]
Working Capital Demand [FCNR (B)] Loan	50.355
Cash Credit Account	80.237

Banking Relations :	Good
Auditors :
Name :	M/s. Ramanlal G. Shah and Company Chartered Accountants
Address :	Shreeji House, Behind M. J. Library, Ellisbridge, Ahmedabad – 380 006, Gujarat
Tel. No.:	91-79-26578819, 26575530
Fax No.:	91-79-26575401
Parent Company :	Gharda Chemicals Limited
Memberships :	v Ankleshwar Industries Association, Gujarat v Baroda Productivity Council, Gujarat v Baroda Management Association, Gujarat v National Safety Council v CHEMEXIL v Pesticides Association of India v Gujarat Chamber of Commerce & Industry
Associates/Subsidiaries :	Gharda Investment Syndicate, Mumbai
Holding Company:	Gharda Chemicals Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs. 12.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
487560	Equity Shares	Rs.10/- each	Rs.4.875 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		4.876	4.876	6.500
2] Reserves & Surplus		699.781	667.888	788.300
NETWORTH		704.657	672.764	794.800
LOAN FUNDS
1] Secured Loans		101.744	130.592	48.100
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		101.744	130.592	48.100
DEFERRED TAX LIABILITIES		1.494	4.671	0.000
TOTAL		807.895	808.027	842.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		167.858	145.047	107.600
INVESTMENT		23.996	22.167	6.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	358.617	441.543	486.200
	Sundry Debtors	379.975	347.939	434.500
	Cash & Bank Balances	29.995	38.368	53.300
	Other Current Assets	0.018	0.015	0.000
	Loans & Advances	451.253	492.211	494.800
Total Current Assets		1219.858	1320.076	1468.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	160.795	187.750	259.400
	Provisions	443.022	491.513	480.100
Total Current Liabilities		603.817	679.263	739.500
Net Current Assets		616.041	640.813	729.300
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		807.895	808.027	842.900

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover	947.117	928.674	1135.300
Other Income	90.613	74.945	0.000
Total Income	1037.730	1003.619	1135.300
Profit/(Loss) Before Tax	51.224	47.870	19.800
Provision for Taxation	19.332	17.084	11.200
Profit/(Loss) After Tax	31.892	30.786	8.600
Export Value	76.082	6.519	65.845
Import Value	45.833	9.902	58.545
Expenses:
Consumption of Raw Materials	475.142	469.790
Purchase of Trading Goods	80.405	75.775
Manufacturing and other Expenses	285.123	299.103	1115.500
Financial Charges	36.076	17.460
Depreciation	21.804	16.955
Total Expenditures	898.55	879.083	1115.500

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	3.07	3.06	3.22
Net Profit Margin (PBT/Sales)	(%)	5.40	5.15	5.49
Return on Total Assets (PBT/Total Assets}	(%)	4.19	3.62	4.17
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.08
Debt Equity Ratio (Total Liability/Networth)		1.00	1.20	1.10
Current Ratio (Current Asset/Current Liability)		2.02	1.94	2.13

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Freehold Land,

Ø Leasehold Land, Buildings,

Ø Plant & Machineries,

Ø Furniture & Fixtures,

Ø Office Equipments,

Ø Electrical Installations and

Ø Vehicles.

Name of the company	GUJARAT INSECTICIDES LIMITED
Presented By	Mr. A.D. Buch Company Secretary
1) Date and description of instrument creating the change	Hypothecation Aghreement dated, 20^th October, 1997
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 235.000 millions consisting following working capital facilities: Sr. Nature of facility ( Rs. in millions)
	1. C.C. ( Hypothecation of 15.000 Stock and Book Debts) 2 .Demand Loan (Under Loan System). 35.000 3. BP-BD 10.000 4. Packing Credit 10.000 5.FBP/UFBP 30.000 Inland / Foreign L/C 60.000 (DP and DA basis 18/0 Days) Performance Guarantee 25.000 Additional Limit for Peak Period (June to November) 1. Demand Loan 7.500 2. C.C. ( Hypothecation 2.500 of Stocks and Book Debts) 3. BP-BD 20.000 4.FBP/UFBP 20.000 Total 235.000
	Agreed to be lent and advanced by the lenders to the company together with interest, cost, charges, expenses, and all other monies payable by the company to the lenders, in terms of the aforesaid Hypothecation Agreement dated 20.10.1997 executed between the company on the one part and the lenders on the other part.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	a)The repayment of all monies under the banking facilities shall be secured by the company by way of Hypothecation of all the raw materials, finished goods, consumable , stores and spares and all the book debts both present and future. Here in after, during the continuance of aforesaid agreement brought into or upon or now or here after in course of transit to any godown, Jatha or other place of storage at Ankleshwar or other place whatsoever in the possession or occupation of the company. b) All the book debts, now owing to the lenders and also the book debts which may at any time during the continuance aforesaid agreement become owing to the lenders in the course of business by any person, firm, company or body corporate or by the government or any other statutory or semi – government authority corporation, undertaking, etc
4) Gist of the terms and conditions and extent and operation of the charge.	a) The charge operates as security, inter – alia, for the due repayment by the company to the lender of its working capital facilities of Rs. 315.000 millions together with interest, cost, charges, expenses and all other monies, payable by the company to the lenders in terms of the Hypothecation Agreement. b) The company has undertaken to keep the goods hypothecation in marketable and good condition at its own cost and to insure the same in the joint names of the company and the lenders. c ) All the goods hypothecated and all the realizations and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive property of the lenders. d) The security created under the said instrument of Hypothecation Agreement is to be a continuing security e) Interest at the rate of 0.75% over PLR i.e. 14.25 % p.a. plus interest tax with quarterly rest f) The company shall maintain a margin of 25% on raw material’s, 30% on others, 40% on book debts and 15% on packing credits (stock of raw materials for exports).
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda, Industrial Estate Branch, S. A. Motors Building, Ankleshwar – 393 002
6) Date and brief description of instrument modifying the charge	Deed of Hypothecation dated, 24^th March, 2003
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By the said Deed of hypothecation overall limit sanctioned to the company has been increased from Rs. 315.000 millions as under: ( Rs. In millions) Particulars Existing New Cash Credit ( Hypothecation) 110.000 130. 000 BP/BD 40.000 40.000 Packing Credit 25.000 25.000 FBP/UFBP 55.000 70.000 Inland / Foreign, L/C 60.000 60.000 Miscellaneous Guarantee 25.000 25.000 All other terms and conditions of the original document dated 20 ^th , October would remain unchanged

WEBSITE DETAILS:

Subject is a sector company, was started in 1980, by Gharda Chemicals Limited, as a step in diversification, in association with the Gujarat Government-owned "Gujarat Agro Industries Corporation Limited". SUBJECT is now a 100% subsidiary of Gharda Chemicals Limited.

Since inception, SUBJECT has recorded a steady growth in sales and profits, with turnover reaching Rs. 1000 millions in 2002-2003. In the process, the company has established a strong presence in the domestic, as well as international market. It was recipient of Certificate of Merit, in 1996, for Outstanding Export performance in Agro-Chemicals, awarded by Chemexcil, Mumbai.

SUBJECT has impressive manufacturing facilities at Ankleshwar, where it employs 480 people. Here, sophisticated technical grade pesticides (and their formulations) like Quinalphos, Carbendazim, Cypermethrin, Fenvalerate and intermediate (Metaphenoxy benzaldehyde) are manufactured. SUBJECT has introduced Metaphenoxy benzylalcohol during 1999 - 2000. An excellent capacity utilization for all the products has led to expansion plans. The company's R & D programme is helping to upgrade several of its manufacturing processes, using modern techniques and analytical equipments.

SUBJECT is the first Agrochemical Company in India to have both ISO 9001 : 1994 Quality Management System (1997) and ISO 14001 Environment Management System (1998).

Subsequently Quality Management System has been upgraded to ISO 9001 : 2000 in May 2003.

Over the past 20 years, SUBJECT has grown from strength to strength. Today, together with Gharda Chemicals Limited, the group is the largest agrochemical manufacturer and exporter in India.

SUBJECT actively participates in educational, social and rural development projects, and for this the company has received national recognition such as : AWARD for Social Responsibility by ICMA, Mumbai (1998).

Recognisations & Awards

1996 Certificate of Merit for Outstanding Export performance in Agro-Chemicals by

Chemexcil, Mumbai

1998 AWARD for Social Responsibility by ICMA, Mumbai

1999 PRASHANSA PATRA Safety Award by National Safety Council of India, Navi Mumbai

2000 Certificate of Merit for Excellence in Management of Safety, Health & Environment by

ICMA, Mumbai

2001 National Energy Conservation Award by Ministry of Power, Government of India, New

Delhi

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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.39.32
UK Pound	1	Rs.82.08
Euro	1	Rs.56.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		78

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