MIRA INFORM REPORT

Report Date :

10.09.2007

IDENTIFICATION DETAILS

Name :	JUBILANT ORGANOSYS LIMITED
Registered Office :	Bhartiagram, Gajraula, District Jyotiba Phuley Nagar, Uttar Pradesh – 244 223
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	21.06.1978
Com. Reg. No.:	20-4624
CIN No.: [Company Identification No.]	U24116UP1978PLC004624
TAN No.: [Tax Deduction & Collection Account No.]	MRTJ00275C
Legal Form :	A Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of basic and speciality chemicals such as acetaldehyde, acetic acid, acetic anhydride, vinyl acetate monomer and pyridine bases and their derivatives.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 38000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company of Bhartia Group, which is a medium, sized industrial house. Available information indicates high financial responsibility of the company and its directors. Their trade relations are reported as fair. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Bhartiagram, Gajraula, District Jyotiba Phuley Nagar– 244 223, Uttar Pradesh, INDIA
Tel. No.:	91-5924-252351/252353-60
Fax No.:	91-5924-252352
E-Mail :	ajay_krishna@jubilantorganosys.com ajay_krishna@jubl.com
Website :	http://www.vamorganic.com http://www.jubilantorganosys.com http://www.jubl.com
Corporate Office :	Plot No.1A, Sector – 16-A, Noida – 201 301, Uttar Pradesh, India.
Tel. No.:	+91 120 2516601 / 2516611
Fax No.:	+91 120 2516629
E-Mail :	investors@jubl.com
Website :	http://www.jubl.com
Mumbai Office	Contractor Building (Ground Floor) 46 R K Marg, Ballard Estate, Mumbai – 400038
Factory 1 :	Bhartiagram, District Jyotiba Phuley Nagar – 201 304, Uttar Pradesh, India
Tel. No.:	91-5924-252351 / 252353-360
Fax No.:	91-5924-252352
Factory 2 :	Village Nimbut, Near Nira Railway Station, District Pune, Maharashtra, India
Tel. No.:	91-2112-269155-57
Fax No.:	91-2112-269154
Factory 3 :	56 Industrial Area, Nanjangud, Distt. Mysore - 571 302 Karnataka, India
Tel. No.:	91 8221 228402-08
Fax No.:	91 8221 228410-11
Factory 4 :	Block No. 133, P. O. Samlaya, Savli Jarod Road, Taluka Savli, Vadodara – 391 520, Gujarat, India
Tel. No.:	91-2667-251306 / 251281 / 251326 / 251361-63
Fax No.:	91-2667-251305
Factory 5 :	Trigen Laboratories Inc. 207 Kinley Drive, Salisbury, MD, 21801
Tel. No.:	1 410 860 8500
Division :	Agro Business Division v 4th Floor, Sheetla House, 74, Nehru Place, New Delhi – 110 019, India Tel. 91-11-26465772 / 26435922 Fax. 91-11-26469088 E-Mail. rkapoor@vamorganic.com Contact Person : Mr. Raju Kapoor Feed Additives Division v 16A, Dutt Vihar Society, Behind ABB House, Race Course Circle, Vadodara – 390 005, Gujarat, India Tel. 91-265-2339411 / 2336640 Fax. 91-265-2339466 E-Mail. anichembaroda@yahoo.com Contact Person : Mr. Subodh Mishra International Division v 5th Floor, Mansarovar, 90, Nehru Place, New Delhi – 110 019, India Tel. 91-11-26292582 / 26211129 Fax. 91-11-26292420 / 26239337 E-Mail. vamintl@vamorganic.com Contact Person : Mr. L. R. Tandon Organic Intermediates Division v 4th Floor, 'Skyline House', 85, Nehru Place, New Delhi-110 019, India Tel. 91-11-26465772 / 26435922 Fax. 91-11-26469088 E-Mail. ddua@vamorganic.com Contact Person : Mr. Dinesh Dua Performance Chemicals Division v 2nd Floor, Skyline House, 85, Nehru Place, New Delhi – 110 019, India Tel. 91-11-26435922 / 26465772 Fax. 91-11-26469088 E-Mail. msharan@vamorganic.com Contact Person : Mr. Madhav Sharan Speciality Products Division v 3rd Floor, Hemkunt Chambers, 89, Nehru Place, New Delhi – 110 019, Inida Tel. 91-11-26428869 / 0347 Fax. 91-11-26465810 E-Mail. vkaushik@vamorganic.com Vinyl Pyridine Latex Division v 16A, Dutt Vihar Society, Behind ABB House, Race Course Circle, Vadodara – 390 005, Gujarat, India Tel. 91-265-2339411 / 2336640 Fax. 91-265-2339466 E-Mail. 1. monojit@gnahd.global.net.in 2. monojit@vamorganic.com Contact Person : Mr. Monojit Mukherjee
R and D Facility:	Uttar Pradesh Add : C-26, Sector 59, Noida - 201 301,Uttar Pradesh, India Tel. : 91 120 2516601, 11 Fax : 91 120 2580033 Uttar Pradesh Add : D-12, Sector 59, Noida - 201 301, Uttar Pradesh, India Tel. : 91 120 2580309 Fax : 91 120 2580310, 2582339 Uttar Pradesh Add : C-46, Sector 62, Noida - 201 301, Uttar Pradesh, India Tel. : 91 120 2404332-35 Fax : 91 120 2404336 Uttar Pradesh Add : Bhartiagram, Gajraula Distt. Jyotiba Phoolay Nagar - 244 223, UttarPradesh, India Tel. : 91 5924 252353-60 Fax : 91 5924 252352 Karnataka Add : 56 Industrial Area,Nanjangud, Distt. Mysore - 571 302 Karnataka, IndiaTel. : 91 8221 228402-08 Fax : 91 8221 228410-11
Marketing offices:	Located at : Ahmedabad, Bangalore, Kolkata, Chennai, New Delhi, Ludhiana, Mumbai, Vadodara and Hyderabad
Overseas Office :	Ø Shanghai Representative Office G/10F, Jiu Shi Fuxing Mansion, 918, Huai Hai Zhong Road, Shanghai PC 2000 20 Tel. 86 21 6415 9378 Fax. 86 21 6415 2793 E-Mail. vamsh@sh163b.sta.net.cn Ø One Evergreen Avenue, Suite LL6, Hamden, CT 06518 Tel. 1-203 230 4890 Fax. 1-203 230 4870 E-Mail. c.gonzalez.vam@worldnet.att.net
Branches :	Uttar Pradesh Add : WW-011, Rohtas Golf Link Apartments 98, Park Road, Lucknow - 226001 UttarPradesh, India Tel. : 91 522 2235148 Fax : 91 522 2238739 Tamilnadu Add : 2nd Floor, JVL Plaza 501, Anna Salai, Teynampet, Chennai - 600018 Tamilnadu, India Tel. :91 44 24349147, 24348556, 24345184 Fax : 91 44 24335875 Andhra Pradesh Add : 304-305,Doshi Chambers,Opp.United insurance Bldg Bashir Bagh Hyderabad – 500029  Andhra Pradesh, India Tel. : 91 40 23227019, 23222232, 23227704 Fax : 91 40 23227213 Karnataka Add : 2nd Floor, Shah Sultan Complex17 Cunningham Road, Bangalore - 560 052 Karnataka, India Tel. : 91 80 2268137, 2284418 Fax : 91 80 2203218 Maharashtra Add:Contractor Building(Gr. Flr.) 46 RK Marg, Ballard Estate, Mumbai - 400 038  Maharashtra, India Tel. : 91 22 22618341, 22679062, 22678992 Fax : 91 22679031, 56314303 Maharashtra Add : 225/5/1A, Pawar Complex, Above Prince Restaurant, Hadapsar, Pune - 411 028 Maharashtra, India Tel. : 91 20 26992395 Fax : 91 20 26993896 Gujarat Add : 402 Samrudhi, Opp. Old Gujarat High Court Lane Near Satar Paluk Society, Ahmedabad - 380 014 Gujarat, India Tel. : 91 79 27541519, 27541120, 27541037 Fax : 91 79 27544561 West Bengal Add : 2nd Floor, Rawdon Chambers,11, Rawdon Street, Kolkata West Bengal, India Tel. : 91 33 22401170, 22401178, 22805087 Fax : 91 33 22409954, 22405530

DIRECTORS

Name :	Mr. Shyam S Bhartia
Designation :	Chairman and Managing Director
Name :	Mr. Hari S Bhartia
Designation :	Co-Chairman and Managing Director
Name :	Dr. J M Khanna
Designation :	Executive Director &President (Life Sciences)
Qualification :	M.S. (Organic Chemistry), Ph.D.
Experience :	39 years
Date of Appointment :	16 August 2002
Name :	Mr. S N Singh
Designation :	Executive Director & President (Chemicals)
Qualification :	B. E. (Chemical Engineering)
Experience :	44 years
Date of Appointment :	14 December 1981
Name :	Mr. S Bang
Designation :	Executive Directors (Manufacturing and Supply Chain Operations)
Date of Birth/Age :	55 years
Qualification :	M.Tech (Chem Engg.)
Experience :	33
Date of Appointment :	02.06.2003
Name :	Mr. Arabinda Ray
Designation :	Directors
Name :	Mr. Bodhishwar Rai
Designation :	Directors
Name :	Mr. Surendra Singh
Designation :	Directors
Name :	Mr. H K Khan
Designation :	Directors
Name :	Dr. Naresh Trehan
Designation :	Directors
Name :	Mr. Ajay Relan
Designation :	Directors
Name :	Mr. Abhay Havaldar
Designation :	Directors

KEY EXECUTIVES

Name :	Mr. R Sankaraiah
Designation :	Executive Directors – Finance
Date of Birth/Age :	47 Years
Qualification :	B.sci., FCA
Experience :	22 Years
Date of Appointment :	09.09.2002
Name :	Mrs. Lalita Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Grou :
India :
A : Individuals / Hindu Undivided Family	1847235	1.29
B : Central Government / State Government(s)	0	0.00
C : Bodies Corporate	66919129	46.68
D : Financial Institution / Banks	0	0.00
Foreign :
A : Individuals (Non – Resident Individuals / Foreign Individuals)	0	0.00
B : Bodies Corporate	0	3.88
C : Institutions	0	0.00
Public Shareholding :
Institutions :
A : Mutual Funds	917618	0.65
B : Financial Institution / Banks	2344722	1.66
C : Foreign Institutional Investors	16852172	11.75
D : Foreign Financials Institutional	24105073	16.80
Non – Institutions :
A : Bodies Corporate	9116794	6.89
B : Individuals -
(1) Individual Shareholders holding nominal share capital upto Rs. 1 Lakh	8136970	9.72
(2) Individual Shareholders holding nominal share capital in excess of Rs.1 Lakh	0	0.18
C : Any Others :
(1) The Custodian Special Court	0	0.04
(2) Non – Resident Individuals	214120	0.46
(3) foreign Individuals	3200	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of basic and speciality chemicals such as acetaldehyde, acetic acid, acetic anhydride, vinyl acetate monomer and pyridine bases and their derivatives.

Products :

Item Code (ITC No.)	Product Description
293331.00	Puridine
300490.81	Carbamazepine
292159.90	Citalopram
291521.00	Acetic Acid
291532.00	Vinyl Acetate Monomer
390511.01	Poly Vinyl Acetate

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Alcohol	KBL	157,700	102,679
Organic including Speciality Chemicals and its Intermediates	MT	485,108	424,583
Polymers including Co-polymers and VP Latex/SBR latex	MT	32,060	26,493
Single Superphosphate	MT	132,000	172,822
Sulphuric Acid	MT	57,750	57,585
Dry & Acqueous Choline Chloride & Ethyoxylates	MT	22,000	8,968
Feed Premixes	MT	3,500	1,680
Agri Chemicals	KL	--	609
Active Pharmaceuticals Ingredients [API]	MT	293	214
IMFL	KBL	10,800	4,706

GENERAL INFORMATION

Suppliers :

Ø Vel make Seals

Ø D. R. Scientific Works

Ø Manik Engineers

Ø Span Engineers

Ø Virava Chemicals

Ø Millenium Chemi Pharma

Ø Mander Engineering

Ø Sunil Kumar & Bros

Ø Premium Energy Transmission Limited

Ø Arihant Gujrat Plastic Industries

Ø Century Thread Works

Ø Pious Printers

Ø Enkay Containers

Ø Makewell Plasticizers Private Limited

Ø Parth Chemical & Metals Enterprises

Ø Metro Polyprints

Ø K L J Organic Limited

Ø Polybond Pharmaceuticals

Ø Dhruv Packaging

Ø Silver Tone Gravu-Flex Private. Limited

Ø Rodricon Industries

Ø S M Engineering

Ø Micro Engineers

Ø Dhatukarm Engineers

Ø Vimal Hi-Tech Private. Limited

Ø A K Sales Corporation

Ø Polybond Pharmaceuticals

Ø Niranjan Containers Private Limited

Ø Parkaire Engineering Co. Private Limited

Ø Multi -Max Engineering. Works

Ø Chhaya Packers & Printers Private. Limited

Ø Basant Plastics

Ø Pahwa Plastics Private Limited

Ø Bloom Packaging Private. Limited

Ø K and S Packaging Dynamics

Ø Sun Synthetics

Ø CMC Enterprises

Ø Purex Laboratories

Ø Alchem Laboratories

Ø Kakkar and Company

Ø India Hardware and Mills Stores

Ø Jain Mill Store P Ltd.

No. of Employees :

700

Bankers :

Ø ICICI Bank Limited

Ø Export - Import Bank of India

Ø Punjab National Bank

Ø Corporation Bank

Ø Canara Bank

Ø Syndicate Bank

Ø Indian Bank

Ø The Jammu and Kashmir Bank Limited

Ø ABN AMRO Bank N. V.

Ø Standard Chartered Bank

Ø ING Vysya Bank Limited

Facilities :

Secured Loan	Rs in millions
Loans From Bank
Term Loans [IncludingRs.892.30million(Previous yearRs.240.60 million) in foreign currency]	892.300
Working Capital [Including Rs.NIL million (Previous year Rs. 322.98 million) in foreign currency]	808.750
Vehicle Loans	3.130
Loans From Others
-Term Loans [Including Rs.83.88 million (PreviousyearRs.136.70 million) in foreign currency]	681.160
-Working Capital [Including Rs.Nil million (Previous year Rs.437.00 million) in foreign currency]	0.000
Total	2385.340
Notes : 1) Term Loans (in Indian Currency) from Export Import Bank of India and Long Term Foreign Currency Loan of US$ 5 million from Export Import Bank of India and External Commercial Borrowing of US$ 20 million from State Bank of India- New York Branch are secured by a first charge by way of: a) Mortgage of the immovable assets and charge by way of hypothecation on the movable assets, both present and future [Save & except Book debts and Bankers Goods as per Note 2 below and specified exclusions listed in notes i to iv below] pertaining to the Company's manufacturing facilities located at Bhartiagram, District Jyotiba Phoolay Nagar, Uttar Pradesh and at Village Samlaya, Taluka Savli, District Vadodara, Gujarat. i. Specified land and buildings situated at Bhartiagram, District Jyotiba Phoolay Nagar, Uttar Pradesh and constructed out of the financial assistance granted by HDFC. ii. Land and Building located at Plot No 1A, Sector 16A, Noida, Uttar Pradesh. ill. Land & Building of Active Pharmaceutical Ingredients Unit located at Nanjangud, Mysore, Karnataka. iv. Immovable assets of the Company situated at Nimbut Village, Nira, District Pune, Maharashtra. b) Hypothecation of fixed assets [other than Land and Building as mentioned in la (iii) above] both present and future pertaining to the Company's manufacturing unit situated at Nanjangud, Mysore, Karnataka; c) Such charges to rank pari-passu amongst the said chargeholder; d) Mortgage in respect of External Commercial Borrowing of US$ 20 million from State Bank of India is pending creation. 2) i) Working Capital Facilities sanctioned by Consortium of Banks and notified Financial Institutions comprising of ICICI Bank Limited, Corporation Bank, Punjab National Bank, State Bank of India, Canara Bank, Export Import Bank of India, ING Vysya Bank Ltd., ABN Amro Bank and Standard Chartered Bank are secured by a first charge by way of hypothecation, ranking pari passu inter-se Banks, of the entire book debts and receivables of the Company and moveable inventories both present and future at the manufacturing facilities at Bhartiagram, District Jyotiba Phoolay Nagar, Uttar Pradesh, at Nimbut Village, Nira, Schedules forming part of the Balance Sheet : District Pune, Maharashtra and at Village Samlaya, Taluka Savli, District Vadodara, Gujarat and at Nanjangud, Mysore, Karnataka (Save and except book debts and inventories related to IMFL business at Nimbut Village, Nira, District Pune, Maharashtra). ii) The Company also has a Commercial Paper Programme aggregating Rs. 1500 million and Short-term debt programme of Rs. 500 million within the overall Working Capital Limits sanctioned to it by the Working Capital Consortium. As on 31.03.06, there was Rs. Nil loan outstanding against the same. The Company has availed Rs. 1800 million against the said facility during the year (Previous year Rs. 550 million). 3) Loans availed for financing purchase of vehicles are secured by a first charge by way of an exclusive hypothecation of the vehicles purchased out of the loan proceeds in favour of the lender. 4) Secured Loans includes loans of Rs. 224.50 million (Previous year Rs. 281.30 million) repayable within one year.

Banking Relations :	Good
Auditors :
Name :	Statutory Auditors
Address :	K N Gutgutia And Company, 11K Gopala Tower, 25, Rajendra Place, New Delhi – 110 048, India.
Name :	US GAAP Auditors
Address :	KPMG, 4B, DLF Corporate Park, DLF City Phase III, Gurgaon – 122 002, India.
Name :	Cost Auditors
Address :	J K Kabra And Company, 552/1B, Arjun Street, Main Viswas Road, Viswas Nagar, Delhi – 110 032, India.
Name :	Internal Auditors
Address :	Ernst And Young Private Limited, Ernst And Young Tower, B-26, Qutab Institutional Area, New Delhi – 110 016, India.
Associates :	Ø Air Travels Bureau (Private) Limited Ø Cable Compound Limited Ø Dominos Pizzas India Ltd. Ø Enpro Services Limited Ø Hindustan Wires Limited Ø India Glycols Limited Ø Insilco Limited Ø Intelcom Limited Ø Jubilant Biosys (P) Limited Ø Jubilant Enpro India Limited Ø Vam Employees Provident Fund Trust Ø Ogan India Private Limited Ø Ramganga Fertilizers Limited (Sick Unit) Ø Vam Petro Products Private Limited Ø Vam Leasing Limited Ø Vam Investments Limited Ø Vam Organic Chemicals, USA Ø Jubilant Enpro Private limited Ø Jubilant Oil and Gas Private limited Ø Enpro Oil Private limited
Subsidiaries :	Ø Jubilant Pharma N. V. Ø Pharmaceutical Services Incorporated N. V. Ø Jubilant Organosys (USA) Inc. Ø Jubilant Clinsys Limited Ø Jubilant Pharma Pte. Ltd. Ø Trigen Laboratories, Inc. Ø Jubilant Pharmaceuticals Inc. Ø Jubilant Organosys (Shanghai) Ltd. Ø PSI Supply N. V. Ø Jubilant Biosys Ltd. Ø Jubilant Chemsys Ltd. Ø Clinsys Holding Inc. Ø Clinsys Inc.
	Ø

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs. 5.00 each	Rs.300.000 millions
2500000	Redeemable Cumulative Preference Shares	Rs. 100.00 each	Rs.250.000 millions
	Total		Rs.550.000millions

Issued, Subscribed :

No. of Shares	Type	Value	Amount
142,474,995	Equity Shares	Re. 1.00 each	Rs.142.480
	Total		Rs.142.480

Paid-up Capital :

No. of Shares	Type	Value	Amount
142,442,995	Equity Shares	Re. 1.00 each	Rs.142.440Millions
	Add. Equity shares forfeited		Rs. 0.020Millions
	Total		Rs.142.460Millions

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		143.500	142.460	129.580
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9473.200	8,102.10	4,830.520
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9616.700	8,244.560	4,960.100
LOAN FUNDS
1] Secured Loans		3614.000	2,385.340	2,038.150
2] Unsecured Loans		12338.100	3,854.540	1,619.730
TOTAL BORROWING		15952.100	6,239.880	3,657.880
DEFERRED TAX LIABILITIES		0.000	1,056.350	857.700
TOTAL		25568.800	15540.790	9475.680
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8394.200	6,986.510	5,275.930
Capital work-in-progress		1768.400	1,168.970	929.700
INVESTMENT		12758.100	2,415.440	990.230
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3117.700	2,818.040	1282.800
	Sundry Debtors	2901.400	2,462.060	1455.050
	Cash & Bank Balances	130.400	1,082.280	208.350
	Loans & Advances	2605.400	1,950.660	0.000
Total Current Assets		8754.900	8,313.040	4,955.060
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3889.000	2,281.000	2,039.530
	Provisions	2258.700	1,094.370	691.290
Total Current Liabilities		6147.700	3,375.370	2,730.820
Net Current Assets		2607.200	4,937.670	2,224.240
MISCELLANEOUS EXPENSES		40.900	32.200	55.580
TOTAL		25568.800	15,540.790	9,475.680

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		17434.200	15048.900	12179.600
Other Income		992.000	209.700	194.100
Increase / (Decrease) in Stocks		197.200	118.500	248.700
Total Income		18623.400	15377.100	12622.400
Profit/(Loss) Before Tax		2995.700	1790.900	1503.100
Provision for Taxation		680.800	403.000	370.200
Profit/(Loss) After Tax		2314.900	1387.900	1132.900
Earnings in Foreign Currency :
	Export Earnings	NA	4614.480	3393.820
	Commission Earnings	NA	0.000	0.000
	Other Earnings	NA	39.460	3.130
Total Earnings		NA	4653.940	3396.950
Imports :
	Raw Materials	NA	2067.590	1726.880
	Stores & Spares	NA	114.350	31.580
	Capital Goods	NA	115.540	121.990
	Trading Goods	NA	325.930	168.610
Total Imports		NA	2623.41	2049.06
Expenditures :
	Raw Materials	8286.700	7424.100	5894.400
	Excise Duty	1345.700	1199.800	1059.500
	Power & Fuel Cost	1297.900	1162.400	1022.500
	Other Manufacturing Expenses	1465.500	1113.300	903.100
	Employee Cost	971.000	772.100	678.000
	Selling and Administration Expenses	1401.500	1139.000	940.100
	Miscellaneous Expenses	98.600	36.400	44.900
	Interest & Financial Charges	245.200	297.500	229.100
	Depreciation	515.600	441.600	347.700
Total Expenditure		15627.700	13586.200	11119.300

QUARTERLY RESULTS

PARTICULARS	30.06.2007 (1^st Quarter)
Sales Turnover	4549.000
Other Income	905.000
Total Income	5454.000
Total Expenditure	3595.000
Operating Profit	1859.000
Interest	63.000
Gross Profit	1796.000
Depreciation	141.000
Tax	271.000
Reported PAT	1384.000

200706 Quarter 1

Notes Gross Sales Includes Domestic Sales and Services Rs 2949.00 million International Sales Rs 1942.00 million Expenditure Includes (Increase)/Decrease in stock of manufactured goods Rs (32.00) million Cost of trading goods sold Rs 126.00 million Raw and Process Materials consumed Rs 2187.00 million Stores, spares, chemicals, catalyst and packing material consumed Rs 240.00 million Manufacturing expenses - Cost of power and Fuel Rs 338.00 million - Other manufacturing expenses Rs 108.00 million Staff Cost Rs 271.00 million Selling, general and Admin. expenses Rs 357.00 million EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 43 Complaints disposed off during the quarter 43 Complaints unresolved at the end of the quarter Nil 1. On June 01, 2007 the Company through its wholly owned subsidiaries has acquired 100% stake in Hollister-Stier Laboratories LLC (HSL), a US based company engaged in Contract Manufacturing of Sterile injectables and Producers of allegenic extracts. The Consolidated financial results of the quarter include results of June 2007 of HSL. 2. On May 23, 2007 the Company subscribed to 700000 Equity shares of the face value of Rs 10/- each at a premium of Rs 36.15 each in First Trust HealthCare Ltd (FTHC) to acquire 51.85% stake. The FTHC is engaged in the business of Development and Management of Hospitals and Health care units and is run by a team of professional doctors in West Bengal. 3. The company invested Rs 208.50 million in Jubilant Infrastructure Ltd a wholly owned subsidiary engaged in setting up of SEZs in the states of Gujarat and Karnataka. 4. During the Quarter, under the Jubilant Employees Stock Option Plan 2005, 1470 were allotted on exercise of 294 vested options. 5. Other Income includes exchange gain of Rs 879 million on foreign currency borrowings including Foreign Currency Convertible Bonds (previous year Q1 FY 2007 exchange loss of Rs 46 million and for FY 2007 exchange gain of 658 million). 6. Performance of Polymers Segment has been combined with Industrial Products Segment as in the opinion of the management the same is more representative in the current circumstances. 7. Figures for previous period / year have been regrouped / reclassified / restated, wherever considered necessary. 8. The above unaudited Results which were subjected to limited review by the auditors of the lyst and packing material consumed Rs 240.00 million Manufacturing expenses - Cost of power and Fuel Rs 338.00 million - Other manufacturing expenses Rs 108.00 million Staff Cost Rs 271.00 million

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio		1.24	0.75	1.12
Long Term Debt Equity Ratio		1.08	0.64	0.88
Current Ratio		1.26	1.40	1.14
TURNOVER RATIOS
Fixed Assets		1.52	1.60	1.58
Inventory		5.87	6.57	8.00
Debtors		6.50	7.09	7.52
Interest Cover Ratio		13.22	7.36	7.56
Operating Profit Margin	(%)	21.55	16.71	17.08
Profit Before Interest and Tax Margin	(%)	18.59	13.77	14.22
Cash Profit Margin	(%)	16.24	12.16	12.16
Adjusted Net Profit Margin	(%)	13.28	9.22	9.30
Return on Capital Employed	(%)	16.21	18.03	23.41
Return on Net Worth	(%)	25.92	21.07	32.33

STOCK PRICES

Face Value	Rs.1.00
High	Rs.293.00
Low	Rs.291.50

LOCAL AGENCY FURTHER INFORMATION

Subject, formerly known as Vam Organic Chemicals (VOCL) was promoted by Bofors, Sweden, Hindustan Wires, and M L Bhartiya of the Bhartiya group. The company manufactures pharma & life science chemicals, performance chemicals and industrial chemicals. The company is one of the largest Custom Research and Manufacturing Services (CRAMS) companies and a leading manufacturer of Active Pharmaceutical Ingredients (APIs) in India. 

In 1983, VOCL promoted India Glycol to manufacture mono ethylene glycol in technical collaboration with Scientific Design Company, US. VOCL has a technical collaboration with Noble Chematur, Sweden, for supply of know-how and basic engineering for the manufacture of vinyl acetate monomer (VAM). It also has technical collaborations with Crown Decorative, UK, for high-pressure emulsions; Technimont, Italy, for poly vinyl alcohols; Hydrogas, Denmark, for recovering carbon dioxide; and Biotim, Belgium, for production of biogas. VOCL took over Ramganga Fertilisers (RFL), a sick company, in 1994.

The subsidiaries of the company are Jubilant Biosys Ltd, Jubilant Chemsys Ltd, Jubilant Clinsys Ltd, Jubilant Organosys USA Inc., Jubilant Organosys (Shanghai) Ltd, Jubilant Pharma NV, Pharmaceuticals Services Incorporated NV and PSI Supply NV. 

The Company was awarded ISO 9001 & 9002. The company has various expansion plans like manufacturing of Tri Ethyl Phosphate (TEP), Wood Finishes a polymer based product in collaboration with Kemira Coatings Ltd, UK, further Construction Chemicals in collaboration with Teutoburg of Germany.

The 'Organic Intermediates Division' of the company has been the largest manufacturer of alcohol based chemical in India. This division has organised into three business unit - Acetyls, Vam, Pyrdine & Picolines. Company's 'Speciality Product Division' related to branded consumer adhesives, footwear adhesives, Wood working adhesives, Speciality wood finishing systems & contruction chemicals this products are used in industrial as well as household sector. Vamicol brand of adhesives is one of the top brands in the Indian Market. Company has revamped its Single Superhosphate (SSP) & Sulphuric Acid Plants of 'Fertiliser Division' for increasing capacity. Company's SSP fertiliser marketed under the brand 'Ramban' is well accepted in the market.  

With the Merger of Anichem India Ltd & Enpro Speciality Chemicals Ltd two new business units - Feed Additives & Vinyl Pyridine Latex will get added advantage. To expand the export business & make market access easy company a subsidiary company was incorporated in the U.S. & Europe to expand the distribution of network & it also opened office in Shanghai which would help to increase its market share in Chinese Market. 

During 1999-2000, the strategic initiative of acquisition of erstwhile Polychem unit at Nira near Pune having production facility of Alcohol, Acetic Acid and Vinyl Acetate Monomer was completed and plant commenced operation in first quarter. Also the merger of erstwhile Anichem India & Enpro Speciality Chemicals was approved by the high court and the company allotted 839897 equity shares of Rs. 10 each fully paid up to the shareholders of erstwhile Anichem India & Enpro Speciality Chemicals. During November, 2001 the name of the company was changed to Jubilant Organosys Limited. 

To provide range of software services and development of software systems the company had floated a new venture named Jubliant Biosys with 51% stake. The venture is located in Bangalore. A new technique for sterilizing surgical instruments with a mixture of ETO/CO2 had been successfully commercialized. During 2002-03 it made entry into Active Pharmaceutical Ingredients business by way acquiring Max India's API operations. The acquired API business is having plant in Nanjangud; Mysore is a US FDA approved manufacturing plant. With the approval from Delhi & Allahabad High Courts the two subsidiaries viz VAM Investments Ltd and VAM Leasing Ltd was merged with the company from 1st April, 2002. 

During 2004-05 the company enhanced its installed capacity of Alcohol, Organic including Speciality Chemicals & its Intermediates and Active Pharma Ingredients by 5900 KBL, 12821 MT and 16 MT. With this expansion the total installed capacity of Alcohol, Organic including Speciality Chemicals & its Intermediates and Active Pharma Ingredients has increased to 157700 KBL, 387545 MT and 218 MT. 

The company is setting up a new R&D Center for development of dosage forms with an area of 20000 Sq.ft equipped with latest equipment to develop new processes and products. Jubilant Chemsys Ltd, a subsidiary company has set up a facility with 25000 Sq.ft employing 47 scientists, to carry out chemical synthesis of medicinal compounds for drug discovery companies to facilitate their lead optimization process. 

The company has commissioned a new multi purpose facility for the fine chemicals which has a reactor capacity of 100 kl and this facility has started commercial production during March 2005. The company has also set up a kilo lab facility with a reactor capacity of 3.6 kl which is built with technical assistance from Pharma Plan to offer the seamless scale up from lab scale to commercial scale was commercialized during February 2005 and this has been further expanded by 7 kl.

CAPITAL STRUCTURE:

(a) SUB-DIVISION:

As approved by the members through Postal Ballot, each equity share of Rs.5 of the Company was sub-divided into 5 equity shares of Re.l each on March 24, 2006. Accordingly, credit was given to the shareholders holding shares in electronic segment on March 25, 2006 and new certificates were sent to other shareholders who surrendered existing share certificates. Any member, who has not received the sub-divided shares, may write to the Registrar and Share Transfer Agent of the Company.

(b) FCCB 2010 ISSUE :

During the year under review, the Company issued Zero Coupon Foreign Currency Convertible Bonds due 2010 (FCCB 02010) for an aggregate value of US$75 million, convertible any time between July 3, 2005 and May 14, 2010 by holders into fully paid equity shares of Rs.5 each of the Company or Global Depositary Shares (GDS), each GDS representing one equity share at an initial conversion price of Rs. 1365.324 per share with a fixed rate of exchange of Rs.43.35 = US$1. The conversion price is subject to adjustment in certain circumstances. The Bonds may also be redeemed, in whole but not in part, at the option of the Company at any time on or after May 23, 2008, subject to satisfaction of certain conditions. Unless previously converted, redeemed or purchased and cancelled, the Bonds will be redeemed on May 24, 2010 at 138.383% of their principal amount. The FCCBs are listed on Singapore Stock Exchange. The GDSs arising out of conversion of FCCBs are listed on Luxembourg Stock Exchange.

Upon sub-division of each equity share of Rs.5 into 5 equity shares of Re.l each, the'conversion price for FCCB 2010 stands reduced from Rs. 1365.324 to Rs.273.0648 per share and the number of shares to be allotted on conversion will be 5 times the initially agreed number.

(c) FCCB 2009 CONVERSIONS

The Company had issued 1.5% Foreign Currency Convertible Bonds due 2009 (FCCB 2009) aggregating US $ 35 million, in the year 2004-05.

The Bonds are convertible at any time between June 14, 2004 and April 15, 2009 by holders into fully paid equity

shares of Rs.5 each of the Company or GDS, each GDS representing one equity Share at an initial conversion price of Rs.818.23 per share with a fixed rate of exchange on conversion of Rs. 44.805 = US $1. The conversion price is subject to adjustment in certain circumstances. The Bonds may also be redeemed, in whole but not in part, at the option of the Company at any time on or after May 14, 2007 and prior to May 8, 2009, subject to satisfaction of certain conditions. The outstanding Bonds remaining after conversion will be redeemed on May 15, 2009 at 113.70% of their principal amount. The FCCB 2009 are listed on Singapore Stock Exchange. The GDS arising out of conversion of FCCBs are listed on Luxembourg Stock Exchange.

As on 31st March, 2006, FCCB 2009 of US $ 5.55 million were outstanding.

Upon sub-division of each equity share of Rs.5 into 5 equity shares of Re.1 each, the conversion price for FCCB 2009 stands reduced from Rs.818.23 to Rs. 163.646 per share and the number of shares to be allotted on conversion will be 5 times the initially agreed number.

FIXED ASSETS :

Plant and Machinery

Vehicles

Office Equipments

Furniture and Fixture

Intangibles

Intenally Generated

SUBSIDIARIES :

Brief particulars of each of the subsidiaries are given below:

• Jubilant Biosys Ltd - A subsidiary of the Company since 2003-04, Jubilant Biosys provides Discovery Informatics products and services and collaborative drug discovery services that include pre-clinical, in-vivo and formulationservices. It also provides Discovery Research Services which is driven by the concept of Structure Directed Drug Design. During the year, Jubilant Biosys signed a 5 year collaborative drug discovery services contract with Eli Lilly. The Company currently holds 66.98% of the equity of Jubilant Biosys.

• Jubilant Chemsys Ltd. - A wholly owned subsidiary of the Company since September 2004, Jubilant Chemsys continues to offer medicinal chemistry services to drug discovery companies on Full Time Equivalent or molecule basis. It also works closely with Jubilant Biosys in collaborative drug discovery and discovery research services areas.

• Jubilant Clinsys Ltd. - A wholly owned subsidiary of the Company since September 2004, Jubilant Clinsys provides Bio Availability and Bio Equivalence studies and clinical trials management services. It conducted some of the BA/BE studies for product development for European and US market for the Company and its other subsidiaries. It has a 54 bed facility along with analytical laboratory facility at Noida to conduct phase" I clinical trials for New Chemical Entity.

• Clinsys Holdings, Inc. - This Company was incorporated in Delaware, USA as wholly owned subsidiary of the Company. This holding company was incorporated for acquisition of 100% equity in Clinsys, Inc. (earlier Target Research Associates, Inc.), during the year.

• Clinsys, Inc. (earlier Target Research Associates, Inc.) - This Company became a subsidiary of Jubilant Organosys Ltd. by virtue of its becoming a wholly owned subsidiary of Clinsys Holdings, Inc. during the year. Clinsys, Inc. is involved in Clinical Operation for phase II to IV, bio statistics, clinical data management, (QA) and regulatory services and contract staffing services.

• Jubilant Pharma Pte Ltd. - This wholly owned subsidiary was incorporated during the year, to make investments in Trigen Laboratories, Inc.

• Trigen Laboratories, Inc. - This Company, earlier known as Trinity Laboratories, Inc., became a subsidiary of Jubilant Organosys Ltd. by virtue of its becoming a subsidiary of Jubilant Pharma Pte. Ltd. during the year. Jubilant Pharma Pte Ltd. holds 66.61% equity stake in this company.

• Jubilant Pharmaceuticals, Inc. - This company, earlier known as Trigen Laboratories, Inc., became a subsidiary of Jubilant Organosys Ltd. by virtue of it being a wholly owned subsidiary of Trigen Laboratories, Inc. Jubilant Pharmaceuticals is a generic pharmaceutical company located in the US having US FDA approved manufacturing facility in Maryland, USA.

• Jubilant Organosys (USA) Inc. - A wholly owned subsidiary of the Company since January 2000, it undertakes sales and distribution of advance intermediates, fine chemicals and APIs in Northern America.

• Jubilant Organosys (Shanghai) Limited -This is a wholly owned subsidiary of the Company that undertakes sales and distribution of products in China. This subsidiary is also a sourcing hub for raw materials for the Company.

• Jubilant Pharma NV - This company is a wholly owned subsidiary of the Company. This company holds 80% equity of Pharmaceutical Services Inc. NV and PSI Supply NV.

• Pharmaceutical Services Inc. NV - This Belgian company offers regulatory affairs services to generic pharmaceutical companies for the diverse European market. Jubilant Pharma NV holds 80% stake in this company.

• PSI Supply NV - This Belgian company undertakes development and supply of generic dosage forms to European markets. Jubilant Pharma NV holds 80% equity stake in this company.

The Company has received exemption from Central Govt. under Section 212(8) of the Companies Act, 1956 from

attaching Balance Sheets and other particulars of subsidiaries vide letter dated April 05, 2006.

ACQUISITIONS :

During the year, the Company made two acquisitions in USA. In June 2005, the Company through its wholly owned subsidiary, Jubilant Pharma Pte Ltd., acquired Trinity Laboratories, Inc. (renamed as Trigen Laboratories, Inc.) and its wholly owned subsidiary Trigen Laboratories, Inc. (renamed as Jubilant Pharmaceuticals, Inc.), a generic Pharmaceuticals company having US FDA approved manufacturing facility for solid dosage forms in Maryland, USA. The Company has invested US$ 14.25 million to acquire 66.61% equity in Trigen of which US$ 8.25 million has been paid to the shareholders of Trigen and balance US$ 6 million has been invested as growth capital.

In October 2005, the Company, through its wholly owned subsidiary, Clinsys Holdings, Inc. acquired 100% equity stake in Clinsys, Inc. at a price of US$ 33.5 million subject to adjustment in case of change in net working capital from zero. The net working capital is currently assessed at US$ 1.07 million. Clinsys Holdings, Inc. raised a debt of US$ 20 million and the Company has infused equity of US$ 15.5 million in Clinsys Holdings, Inc. to fund the acquisitions. Clinsys is a clinical research organization based in New Jersey having 161 employees and around 20 customer relationships. Clinsys is the preferred partner to some of the large global pharmaceutical companies.

As per website details

Jubilant Organosys is a collaborative, innovative provider of products and services to the global life sciences industry, striving to accelerate the process of pharmaceutical drug approval.

We have a presence across the pharmaceuticals value chain ranging from drug discovery services, custom research and manufacturing services, advance intermediates and fine chemicals to active pharmaceutical ingredients, dosage forms and regulatory affairs services.

We also enjoy leadership in Industrial Products and Performance Polymers products in India.

Corporate Overview

Jubilant Organosys is an integrated pharmaceutical industry player having presence across the pharmaceuticals value chain. We are a collaborative and innovative provider of products and services to the global life sciences industry, striving to accelerate the process of pharmaceutical drug approval. Our range of offerings include drug discovery and development services, custom research and manufacturing services, advance intermediates, fine chemicals, active pharmaceutical ingredients, dosage forms and regulatory affairs services.

We are one of the largest Indian Custom Research and Manufacturing Services (CRAMS) and Drug Discovery Services companies and a leading active pharmaceuticals ingredients company in India.

We are a Science Active company with more than 25 years of chemistry knowledge in producing innovative products and processes by leveraging our R&D expertise, knowledge driven operations and global scale manufacturing capacities.

Jubilant Organosys has three subsidiary companies in India - Jubilant Biosys Ltd. for bio/chemo informatics databases & drug discovery services, Jubilant Chemsys Ltd. for medicinal chemistry services and Clinsys Clinical Research Ltd. for clinical research.

We have a strong international presence, having international subsidiaries in USA, Belgium and China. PSI N.V. and PSI Supply N.V., in which Jubilant Organosys holds 80% equity, are the Belgium based pharmaceuticals companies providing regulatory affairs services and supply of dosage forms to European generic companies. Jubilant Pharmaceuticals, Inc., a subsidiary of Jubilant in USA, is a generic pharmaceutical company having a US FDA approved manufacturing facility in the USA. Clinsys Clinical Research Inc., a wholly owned subsidiary, is a clinical research organization (CRO) operating out of the USA. Jubilant Organosys also has marketing subsidiaries in USA and China. Jubilant products are sold across the globe in more than 50 countries.

Our business is organized in three business segments: Pharmaceuticals & Life Science Products, Industrial Products and Performance Polymers.

We have four manufacturing locations in India situated at Gajraula (in Uttar Pradesh), Nanjangud (in Karnataka), Nira (in Maharashtra) and Samlaya (in Gujarat) and a US FDA approved manufacturing facility for dosage forms in Maryland, USA.

Globally, Jubilant Organosys is a leading manufacturer in defined product segments, including select APIs (e.g., Carbamazepine and Citalopram), Pyridine and its derivatives, Solid polyvinyl acetate, Vinyl Pyridine Latex and Organic Intermediates (e.g., Ethyl Acetate and Acetic Anhydride).

News Highlights

Jubilant Organosys Rated "A+" by Global Reporting Initiative

First Company in Global Pharmaceuticals sector to achieve this recognition

August 2007: In a rare 'first of its kind achievement', Jubilant Organosys has been accorded international honour for its commitment to Corporate Sustainability by an apex global organization

Jubilant's Corporate Sustainability Report for Financial Year 2007 has been accorded "A+" rating by Global Reporting Initiative (GRI), an International Agency developing Sustainability Reporting Guidelines. This is the highest rating as awarded by GRI. With this, Jubilant has become the 'First Company in the Global Pharmaceutical Sector' to be rated "A+" by Global Reporting Initiative (GRI)

Speaking on the occasion, Mr. Shyam Bhartiya, Chairman and Managing Director and Mr. Hari Bhartiya, Co-Chairman and Managing Director, Jubilant Organosys Ltd., said,

"Jubilant is committed to its social responsibility as seriously as it's committed to it's financial performance. As a business entity, we aim at improving stakeholder value through improved eco-efficiency of operations, economic upliftment of the communities we operate in and efficient use of capital and natural resources. We are proud to be recognized as A+ by Global Reporting Initiative and be the first Global Pharma Company to achieve this high standard."

Jubilant Organosys has been one of the pioneers in the corporate sector to report on social and environmental performance through its voluntary "Sustainability Reports" for the last four years. These reports follow the guidelines of Global Reporting Initiative (GRI), an Amsterdam based international agency. GRI has been developing guidelines from time to time, which are followed by organizations reporting on sustainability performance across the globe. Jubilant's current report for FY 2007 is based on the latest set of guidelines by GRI brought out in October 2006 and has been externally verified by reputed international consultants.

About Jubilant Organosys

Jubilant Organosys Ltd. is an integrated pharmaceutical industry player, one of the largest custom research and manufacturing services (CRAMS) and drug discovery and development services companies out of India. The company has a presence across the pharmaceutical value chain: from drug discovery, functional chemistry and clinical research services to custom research and manufacturing services for advance intermediates and fine chemicals, Active Pharmaceutical Ingredients and Dosage Forms.

Jubilant Organosys has geographically diversified manufacturing facilities in seven locations: Gajraula (UP), Nanjangud (Karnataka), Roorkee (Uttarakhand), Nira (Maharashtra), Samlaya (Gujarat), Salisbury, state of Maryland (USA) and Spokane, state of Washington (USA). Together, these help Jubilant cater to 130 customers across 50 countries around the world.

For further information please contact:

A.K Ghose	Siddharth Rangnekar
Jubilant Organosys Limited	Citigate Dewe Rogerson
Tel: (0120) 4361845	Tel: (022) 4007 5005
Fax: : (0120) 2516834	Fax: (022) 2284 4561
E-mail: ashok_ghose@jubl.com	E-mail: siddharth@cdr-india.com

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. Jubilant Organosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the regulatory bodies and our reports to shareholders. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.

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 :

Their 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.40.63
UK Pound	1	Rs.82.42
Euro	1	Rs.55.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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