MIRA INFORM REPORT

Report Date :

22.05.2008

IDENTIFICATION DETAILS

Name :	GUJARAT STATE FERTILIZERS AND CHEMICALS LIMITED
Registered Office :	P. O. No. Fertilizer Nagar - 391 750, District Vadodara, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	15.02.1962
Com. Reg. No.:	04-1121
CIN No.: [Company Identification No.]	L99999GJ1962PTC001121
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00298E
Legal Form :	Public Limited Liability Company. The company shares are listed on the Stock Exchange.
Line of Business :	Manufacturers of Fertilizers and Chemicals including Synthetic Filament Yarn / Tyre Cord and Nylon Chips.

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 54000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. Company’s fundamentals are strong. Trade relations are fair. Payments are usually correct and as per commitments. The company is faring well. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	P. O. No. Fertilizer Nagar - 391 750, District Vadodara, Gujarat, India
Tel. No.:	91-265-2372451/ 2372641/ 2372651/ 2372751 / 2370090 – 96 / 2370098 / 104 / 105 / 2372906 / 2240411
Fax No.:	91-265-2372966 / 2240097
E-Mail :	info@gsfclimited.com kdjeswani@gsfcltd.com crrao@gsfcltd.com ho@gsfcltd.com
Website :	http://www.gsfclimited.com
Factory 1 :	Ø Main Plant Fertilizer Nagar, District Vadodara, Gujarat, India Ø Polymers Unit Nandesari, District Vadodara, Gujarat, India Ø Sikka Unit Moti Khavdi, Sikka, District Jamnagar, Gujarat Ø Fibre Unit Kuwarda, Kosamba, District Surat, Gujarat
Branches :	102/103, Raheja Centre, 214, Free Press Journal Marg, Nariman Point, Mumbai - 400 021, Maharashtra, India
Tel. No.:	91-22-2282 4030 / 2283 1903 / 894 / 915
Fax No.:	91-22-2283 1899

DIRECTORS

Name :	Mr. S G Mankad
Designation :	Chairman
Name :	Dr. Manjula Subramaniam
Designation :	Director
Name :	Mr. Balwant Singh
Designation :	Director
Name :	Dr. Avinash Kumar
Designation :	Director
Name :	Prof. Vasant P Gandhi
Designation :	Director
Name :	Mr. D C Anjaria
Designation :	Director
Name :	Mr. Ajay N Shah
Designation :	Director
Name :	Mr. Vijai Kapoor
Designation :	Director
Name :	Mr. A K Luke
Designation :	Managing Director
Name :	Mr. C R Rao
Designation :	Special Director

KEY EXECUTIVES

Name :	Mr. S. W. Palnitkar
Designation :	Executive Director and Company Secretary
Date of Birth/Age :	61 years
Qualification :	Company Secretary
Experience :	17 years
Date of Appointment :	27.06.1986
Previous Employment :	Divisional Audit Officer – Central Railway, Bhusaval, Maharashtra, India
Name :	Mr. H. M. Shah
Designation :	Executive Director
Date of Birth/Age :	61 years
Qualification :	B.E. Mechanical
Experience :	33 years
Date of Appointment :	03.09.1970
Previous Employment :	General Electric Company, Lymn, Mass, USA
Name :	Mr. C. A. Subramaniam
Designation :	Executive Director
Date of Birth/Age :	61 years
Qualification :	B.Sc Engg. Chemical
Experience :	38 years
Date of Appointment :	27.09.1965
Name :	Mr. A K Vijay Kumar
Designation :	Executive Director
Name :	Mr. M S Agarwal
Designation :	Executive Director
Name :	Mr. V D Nanavaty
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (31.03.2008)		No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian
Bodies Corporate		30159981	37.84
Public Shareholding
Institutions
Mutual Funds / UTI		8514956	10.68
Financial Institutions / Banks		17686	0.02
Insurance Companies		10408889	13.06
Foreign Institutional Investors		6573935	8.25
Non-Institutions
Bodies corporate – Indian		10455996	13.12
Individuals
i. Individual shareholders holding nominal share capital upto Rs. 0.100 million		7751609	9.73
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 million		3784633	4.75
Any Other :
	Trusts	1976	0.00
	Directors and their Relatives	290	0.00
	Non-Resident Indian	235446	0.30
	Overseas Corporate bodies	76154	0.10
	Societies	505817	0.63
	Clearing Members	312231	0.39
	Hindu Undivided Families	895907	1.12
Total		79695506	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Fertilizers and Chemicals including Synthetic Filament Yarn / Tyre Cord and Nylon Chips.

Products :

Item Code No. (ITC Code)	Product Description
310200	Chemical Fertilizers
293300	Caprolactam
540200	Nylon Filament Yarn

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ammonia	MT	150000	150000	7215
Ammonia (Expansion)	MT	445500	445500	470994
Urea	MT	364000	364000	314779
Ammonium Sulphate Phosphate or Ammonium Sulphate And i) Di-Ammonium Phosphate	MT	256000	108000 or 108000	177367
Caprolactam	MT	70000	70000	78120
Ammonium Sulphate Caprolactam	MT	202000	196000	292350
Nylon-6 Chips	MT	--	7000	7975
Sulphuric Acid	MT	132000	132000	134791
Styrene Acrylonitrile	MT	500	300	--
Melamine	MT	--	15000	15323
MEK Oxime	MT	--	1200	2699
Methyl Methacrylate Monomer	MT	5000	5000	4056
Polymethyl Methacrylate Sheets	MT	2000	2000	573
Polymethyl Methacrylate Pellets	MT	1500	1500	1936
Ammonium Sulphate (Polymers)	MT	10000	10000	9376
Acetone Cyano Hydrine	MT	5150	5150	5806
Methacrylic Acid	MT	500	500	663
DAP [A+B Train]	MT	150000	150000	574241
DAP [C Train]	MT	--	396000	--
NPK	MT	--	--	38508
Synthetic Filament Yarn Including Industrial Yarn / Tyre Cord	MT	6000	6000	5779
Nylon Chips	MT	2000	2000	4546

GENERAL INFORMATION

Customers :

v A N Instruments Private Limited

v AEP Company

v Bhavani Forge Private Limited

v Bharat Forge and Press Industries Limited

v Chemtrol Valves Private Limited

v Chisel and Hammer

v Detection Instruments (India) Private Limited

v Econo Valves Private Limited

v Elctro Mech Industries

v Fabwell Engineering Corporation

v Fainger Engineering

v Flowchem Industrial Private Limited

v Globe Electrical Industries

v Goa Instrument Industries

v Hawa Industries Private Limited

v Hydropneumatics

v Jhaveri Polymers

v LGP Engineering Limited

v Instrument Engineering Private Limited

v Jyoti Industries

v Kirti Plastic Industries Private Limited

v Madras Industrial Products

v Mayank Gasket Manufacturing

v MKT Valves Private Limited

v New Field Industrial Equipments

v New Mercantile Impex Private Limited

v Odin India Private Limited

v Powergrip (India) Fasteners Private Limited

v Unitop Engineers Private Limited

No. of Employees :

4862

Bankers :

v Bank of Baroda

v State Bank of India

v Bank of India

v Vijaya Bank

v Central Bank of India

v Dena Bank

v Indian Bank

v Indian Overseas Bank

v Punjab National Bank

v ICICI Bank Limited

v Yes Bank Limited

v UTI Bank Limited

Facilities :

Secured Loan	31.03.2006 Rs In Millions
From Banks :
i) Cash Credit	4293.498
ii) Working Capital Term Loans	--
iii) Interest accrued and due on above	10.377
Total	4303.875
The Company, after due approval from Corporate Debt Restructuring Cell has made accelerated repayment of debts. With this repayment, Debentures / Bonds at A, Loans at B and Working Capital Term Loans at C (ii), which were secured against fixed assets of the Company, are fully repaid and the process of vacating of security is under progress.
The Credit Facility from Banks at C (i) is secured by hypothecation of stock of raw materials, finished products, packing materials, general stores, spares, book debts etc. of the Company.
UNSECURED LOANS		31.03.2006 (Rs. in millions)
Fixed Deposits		1020.188
2] Deposits from Other Companies		500.000
3] Other Loans :
(a) Housing Development Finance Corp. Limited (HDFC) (for housing loans to employees)		165.864
(b) Kreditanstalt fur Wiederaufbau Germany (KfW) Foreign Currency Loan		187.851
(c) (i) External Commercial Borrowings in Foreign Currency		29.743
(ii) Interest accrued and due on above		1.885
(d) Banks :
(i) For housing loans to employees *		180.360
(ii) For vehicle loans to employees *		30.600
(iii) Under acceptance-cum-bill discounting facility		1786.618
(iv) Short Term Loan		1750.000
(e) Govt. of Guj. Deferment Loans		900.153
Loan under 3(a) is payable in 48 monthly installments commencing from 30-04-2005, while loans under 3(d)(i) and 3(d)(ii) are payable in 60 monthly installments commencing from April 2004.
KfW loan under 3(b) is payable in ten half yearly installments commencing from 01-07-2004.
Loan under 3(e) represents Deferment of sales tax, electricity duty and water charges granted by Government of Gujarat vide their notification G.R.No. GSF/11/2003/3554-E dated 03-11-2003 to the Company for the calendar years 2004 and 2005, which is repayable after completion of five years. The Company has stopped availing deferment from 01-01-2006.

Banking Relations :

Satisfactory

Auditors :

Name :

STATUTORY AUDITORS

Ghiya and Company

Chartered Accountants

Jaipur, Rajasthan, India

BRANCH AUDITORS

(Polymers and Fibre Units)

K. C. Mehta and Company

Chartered Accountants

Vadodara, Gujarat

COST AUDITORS

Diwanji and Associates

Cost Accountants

Vadodara, Gujarat

Memberships :

Confederation of Indian Industry

Associates :

v Gujarat Narmada Valley Fertilizer Company Limited

v Gujarat Industries Power Company Limited

v Gujarat Alkalies and Chemicals Limited

v Gujarat Agri Processing Company Limited

v Gujarat State Fertilisers Company Infopark Limited

v Effluent Channel Project Limited

Subsidiaries :

v GSFC Investment and Leasing Company Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
16000000	Redeemable Cumulative Preference Shares	Rs. 100.00 each	Rs. 1600.000 millions
200000000	Equity shares	Rs. 10.00 each	Rs. 2000.000 millions
	Total		Rs. 3600.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
	Issued Capital :
79824370	Equity shares	Rs. 10.00 each	Rs. 798.244 millions
	Subscribed Capital :
79813937	Equity shares	Rs. 10.00 each	Rs. 798.139 millions
	Paid-up Capital :
79695506	Equity Shares	Rs. 10.00 each	Rs. 796.955 millions

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		797.000	797.400	797.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12855.100	10605.100	8076.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13652.100	11402.500	8873.400
LOAN FUNDS
1] Secured Loans		3329.000	4303.900	7896.500
2] Unsecured Loans		6318.900	6553.300	3697.000
TOTAL BORROWING		9647.900	10857.200	11593.500
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		23300.00	22259.700	20466.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13295.600	14480.000	15763.400
Capital work-in-progress		62.200	63.300	58.300
INVESTMENT		1393.100	1298.500	1291.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5380.400	5350.600	3836.400
	Sundry Debtors	7789.300	9040.400	5874.000
	Cash & Bank Balances	1944.600	251.800	553.400
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2469.500	2236.600	4886.800
Total Current Assets		17583.800	16879.400	15150.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7770.300	9282.000	10978.800
	Provisions	1264.400	1185.200	834.000
Total Current Liabilities		9034.700	10467.200	11812.800
Net Current Assets		8549.100	6412.200	3337.800
MISCELLANEOUS EXPENSES		0.000	5.700	16.100
TOTAL		23300.00	22259.700	20466.900

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		35160.300	30043.500	27604.100
Other Income		942.500	1098.100	638.400
Stock Adjustments		527.900	1050.500	(164.700)
Total Income		36630.700	32192.100	28077.800
Profit/(Loss) Before Tax		3530.900	4369.000	2520.400
Provision for Taxation		861.800	1431.000	1139.700
Profit/(Loss) After Tax		2669.100	2938.000	1380.700
Earnings in Foreign Currency :
	Export Earnings	NA	0.000	0.000
	Commission Earnings	NA	2067.568	1764.794
	Other Earnings	NA	0.000	0.000
Total Earnings		NA	2067.568	1764.794
Imports :
	Raw Materials	NA	8695.190	6341.471
	Stores & Spares	NA	102.834	91.063
	Capital Goods	NA	5.378	0.000
	Others	NA	0.000	0.000
Total Imports		NA	8803.402	6432.534
Expenditures :
	Raw Materials	20410.200	16588.100	14458.600
	Excise Duty	1936.800	1716.900	1555.400
	Power and Fuel Cost	2577.900	2415.300	2311.100
	Other Manufacturing Expenses	1740.900	1258.000	1198.900
	Employee Cost	1957.900	2055.400	1838.900
	Selling and Administration Expenses	1809.600	1286.200	1315.000
	Miscellaneous Expenses	478.800	227.600	342.500
	Interest and Financial Charges	762.500	860.100	1104.200
	Depreciation	1425.200	1415.500	1432.800
Total Expenditure		33099.800	27823.100	25557.400

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	6745.000	10898.000	9954.800
Other Income	284.200	331.000	104.200
Total Income	7029.200	11229.000	10059.000
Total Expenditure	5679.100	9527.500	8557.200
Operating Profit	1350.100	1701.500	1501.800
Interest	175.600	112.000	72.100
Gross Profit	1174.500	1589.500	1429.700
Depreciation	356.500	355.800	354.900
Tax	333.500	486.700	431.400
Reported PAT	540.200	816.100	742.600

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio		0.82	1.11	1.56
Long Term Debt-Equity Ratio		0.28	0.65	1.06
Current Ratio		1.05	1.01	0.94
TURNOVER RATIOS
Fixed Assets		1.15	0.99	0.91
Inventory		6.55	6.54	7.30
Debtors		4.18	4.03	4.93
Interest Cover Ratio		5.63	6.08	3.28
Operating Profit Margin	(%)	16.26	22.12	18.32
Profit Before Interest And Tax Margin	(%)	12.21	17.41	13.13
Cash Profit Margin	(%)	11.64	14.49	10.19
Adjusted Net Profit Margin	(%)	7.59	9.78	5.00
Return On Capital Employed	(%)	18.85	24.49	17.33
Return On Net Worth	(%)	21.31	28.98	16.85

LOCAL AGENCY FURTHER INFORMATION

History

Subject was previously known as The Gujarat State Fertilizer Company (GSFC) was promoted by the Government of Gujarat in 1962, in the joint sector, for the manufacture of fertilisers and heavy chemicals. GSFC, along with the Gujarat government, promoted Gujarat Narmada Valley Fertilizer Company (GNFC), which has the largest fuel-based ammonia plant and the largest single stream urea plant in the world when commissioned. GSFC Investment and Leasing Company Limited is a subsidiary of the company.

In 1994-95, the company signed a MoU with the Uganda Development Corporation to set up a phosphatic fertiliser project in Uganda. It promoted Gujarat Airways along with the Gujarat government to operate flights to and from Bombay. Besides this, GSFC has signed an agreement with GSFC and Tahal Consulting Engineers, Israel, have formed a joint-venture consulting company in water management to bring relief to Gujarat's arid zones. 

In 1999-2000, with a view to diversify in the field of information technology, the Company signed an MOU with L and T. The Company has also incorporated a separate company in the name of GSFC Infopark Limited. 

 The Company is engaged in the implementation of the DAP expansion project of the capacity of 4.0 million tonnes per annum at Sikka, Jamnagar. During 2004-05 the company has also considered to incorporate necessary modification at Sikka DAP Plant to produce NPK Fertilizer at an estimated cost of Rs.30 millions.

During 2003-04 the company decided to set up a production facility of MEK-Oxime with a capacity of 6500 MTPY at an estimated cost of Rs.75 millions with is expected to be completed by May 2005. Further the erection of MEK-Oxime was completed and the trial production has commenced from 23rd April 2005. During 2004-05 the company has decided to go for additional production facility of Mek-Oxime plant with completion by end of May 2005.

PROJECTS UNDER CLEAN DEVELOPMENT MECHANISM: 

The Company is committed to Energy and Environment improvement and is always looking forward to such opportunities. 

The Company has taken positive steps for taking up energy efficiency improvement projects under Clean Development Mechanism (CDM). These projects aim at reducing emission of green house gases. The Company has identified few projects like recovery of energy from off gases of Caprolactam plant, power saving improvements in process plants, improvements in Urea plant etc. The Company is identifying suitable agency that will assist in CDM registration and procedures. Implementation of these projects will help in contributing to global reduction of green house gases. It will also help the Company in earning Carbon Credit under CDM and saving of energy through implementation of these projects. 

EXPANSION and DIVERSIFICATION: 

The MEK-Oxime plant has been completed and the plant is operating on full throttle. The product quality achieved is of export grade. 

For the production of Methanol in Ammonia I plant, the feasibility study through three internationally renowned technology suppliers is completed. The project appraisal is being done through IDBI.  

NPK production is started at Sikka Unit by making suitable modifications at marginal cost. This was done without affecting the overall production of DAP at Sikka Unit. 

The Company has taken a major step in ensuring availability of Phosphoric Acid to its DAP Plant at Sikka. This plant, because of shortage of Phosphoric Acid, is able to run at a capacity utilization of only 68% annually. The Company has decided to invest in GCT, Tunisia, one of the world's major producers of Phosphoric Acid, so as to ensure substantial supplies of additional Phosphoric Acid. With the commissioning of GCT's new plant in Tunisia in 2008, where the GSFC would have an equity stake and the consequent availability of additional Phosphoric Acid alongwith commitment to supply additional quantity of Phosphoric Acid from M/s. Foskor, South Africa and M/s. OCP, Morocco who are the world leaders in manufacturing Phosphoric Acid and also our existing suppliers, the GSFC Sikka Plant would be able to achieve full capacity utilization thereby producing 1 million ton of DAP in Sikka. This would substantially add to the Company's profitability and also ensure supplies of fertilizer to the farmers of the country. The gradual completion of the Sardar Sarovar project would increase the fertilizer demand in Gujarat which is the most profitable market for the Company because of proximity. 

The Company is also contemplating the expansion of its Caprolactam manufacturing facilities. The Company is planning to put up an additional 50000 tons per annum Caprolactam facility near its existing Caprolactam plant. The technical feasibility study for the same is given to renowned technology suppliers. The study is expected to be completed within 6 months. The Company is also exploring possibilities of expansion in Melamine, Urea, Sulphuric Acid and Phosphoric Acid at its Vadodara Plant. 

PROMOTIONAL ACTIVITIES: 

With an objective to `Sale Productivity not the Product', the Company is presenting bouquet of products and services to the farmer. The bouquet is emitting fragrance not only of Chemical Fertilizers but also other products like Bio fertilizers, Banana Tissue Culture Plants, Micronutrients, Water-soluble Fertilizers (19: 19: 19) and services like Soil and Water Testing, Agricultural Monthly Magazine `KRISHIJIVAN', Micro Irrigation System (MIS) etc. A Small-scale production facility of Vermicompost for demonstration purpose has also been established. With the objective of supplying quality seeds to the farmers, Company has coordinated with highly reputed seed producers. During the financial year 2005-06 Company has achieved ever-highest sale (434 MTs) of Biofertilizers and 2.152 Millions Banana Tissue Culture Plants. 

 The Company has constructed seven Satellite Net Houses on the farmers' field in Gujarat State for secondary hardening of Tissue Culture Plants to cater the requirement of the farmer and also to act as an entrepreneur promoted by the Company for sale of tissue culture plants to other farmers. The Company is trying to develop Tissue Culture plants of Papaya, Turmeric and Ginger on experimental basis and disease free Potato seed through Tissue Culture and make them available to the farmers. The Company has played its pro-active role in the State for preparing Soil Health Card, which is helping the farmer to improve the health of soil. 

Publication of KRISHIJIVAN, a unique monthly magazine having the highest circulation is continued to be published, which is disseminating the knowledge to the farmer in various activities of agriculture and acting as a link for transfer of technology from 'lab' to 'field'. 

With a view to provide `TOTAL SOLUTION' to the farming community and taking support of Information Technology too, it is planned to set up `Agri-net system'. Under this system all the depots will be linked through computer to GSFC headquarter and other websites so that Company's representative at the depot can answer farmer's queries with one click only. The farmer can even interact with experts of different subjects of agriculture through this system. 

In the era of Biotechnology, the Company after successful field trials launched various Bioproducts viz. Gibberellic Acid as growth promoting agent and Protein Hydrolysats for protein nutrition, Pheromone Traps and Lures for monitoring of crop pests. It is also planned for manufacturing and marketing Azadirachtin (Neem base) for control of wide spectrum of insects, Pseudomonas for control of fungus, nematodes and bacterial disease for protecting agriculture in biological way and Vesicular Arbuscular Mycorrhiza (VAM) in collaboration with The Energy Research Institute (TERI). 

The Company has decided to participate in developing 'alternate energy resources' and planned for Jatropha Project on Government of Gujarat Land (Approx 1,095 hectares) at Patan District and technology collaboration for Medicinal Plants for inter cropping with Central Institute for Medicinal and Aromatic Plants (CIMAP), Lucknow. 

A challenging and herculean task of installing MIS on a large scale in Gujarat State has been taken up by Gujarat Green Revolution Co. Limited (GGRC), promoted by the company along-with GNFC and GAIC. Widespread and well organized marketing network of the company is the backbone for achieving desired milestone in the said task. 

During 2005-06, GGRC could do MIS in 16,152 hectares covering 58 crops that is considered to be remarkable milestone in the first year of the company. 

The Company has also launched marketing of eco-friendly biological fungicide under the brand name of `Sardar Ecogreen' for protecting crops from soil borne plant pathogens manufactured by GGRC. The product has been successfully commercialized with technical know-how from National Botanical Research Institute (NBRI) with an installed production capacity of 100 MTPY. 

Nominations from Financial Institutions: 

During the year the Company has prepaid outstanding loans etc. to different financial institutions and consequently IDBI, UTI and ICICI Bank Limited have withdrawn their nominee’s viz. Shri R S Agarwal, Shri N R Krishnan and Shri S R Vengsarker respectively. 

In pursuance of the provisions of Article 170 of the Articles of Association of the Company, as also the provisions of the Companies Act, 1956, Dr. Avinash Kumar, IAS will retire by rotation at this Annual General Meeting and being eligible, has offered himself for re-appointment. 

The company has strategic alliances with the following:-

v Super Waudite Jointings Private Limited

v Eagle Poonawala Industry Limited

v Chemtrols Engineering Limited

v Elson Packaging Industries Private Limited

v Fluorocarbon Processing Industries

v Karan Synthetic (India) Private Limited

v Metal India

v Shekasa Engineering Company Private Limited

v Arcoy Industries

v Prime Mover Governor Services

v Ideal Systems Private Limited

v Ambili Industries

Products and Services

With a market presence exceeding 35 years, the company has carved out an irreplaceable image for itself on the Indian Marketing scene. Integration of technologies and brilliant innovative research ensures that the products touch all walks of life. From household consumer to core industrial consumer, the company continued fulfills multifolds needs of the market.

The company’s incessant strive for product diversification and value addition has created a product mix ranging more than 24 brands of fertilizers to petrochemicals, chemicals, industrial gases, plastics, fibres and other products.

Conforming to the strictest international standards GSFC continuously achieves and maintains Best Quality, Superior Packaging, Prompt Deliveries and Services of highest standards for every product. This claim is well sustained by a string of National and International Awards, but total customers satisfaction is the most valued award at company.

Today, stands for superior quality with many of its products being ISO 9001 certified. The company believes in providing highest value of the customer’s money through economies of scale, continuous product improvement and value addition to the products.

Undoubtedly, the company is a respectable player in the emerging scenario of the competitive and globalized industry.

The company has customer Service Centres both in Agriculture Field (AD and AS) and Industrial Field (ADC) to disseminate the latest technical knowledge for efficient use of the products.

Fixed assets

v Leasehold and freehold land

v Buildings

v Railway sidings

v Plant and machinery

v Furniture, fittings and equipments

v Vehicles

v Library books

v Livestock

AS PER WEBSITE

The company is one of the largest integrated fertilizer and petrochemical complexes in India, producing a variety of fertilizers, intermediates and petrochemical products. The company has adopted an integrated approach to conserving water. This strategy has brought multiple benefits to the operations of company. By recycling their effluent streams, the company substitutes recycled water for raw water in their water stream, resulting not only in water conservation and cost savings, but also in the recovery of chemicals previously discharged in the process and an higher level of water pollution control compliance. Water consumption has been maintained at a low level, despite the expansion of the plant and increased production levels.

Profile

Translating GSFC's philosophy is its vast network of plants that make its possible. This infrastructure took its first step in 1967 with the setting up of 6 plants with an initial investment of Rs. 400 Millions. These six nitrogenous and phosphatic fertilizer plants started production of Ammonia, Urea, Ammonia Sulphate (AS), Diammonium Phosphate (DAP), Sulphuric Acid and Phosphoric Acid. The expansion of Ammonia and Urea production began with Phase II in 1969 and an investment of Rs. 230 Millions was made to meet the increasing demand for Nitrogenous fertilizers. Phase III began in 1974 when diversification of products occurred. Plants to manufacture caprolactam, Melamine, Nylon-6, Oleum- SO₂ and OXO-Synthesis Gas unit and Purge Gas Recovery Unit were set up. With Phase III, GSFC became India's first and only Melamine Producer. This provided the boost for further diversification to Nylons/ Fibers/ Melamine/MEK-Oxime and industrial gases like Argon Gas and Oxo Synthesis Gas. In 1989 GSFC began further expansion and diversification (Phase IV) which saw the company increasing its self-reliance while also conserving energy needs. Three Co-generation units using LSHS and Natural Gas were set up. Also further expansion of Ammonia and Caprolactam production was initiated. Diversification into Fibers, Nylons, and acrylic were completed and a DAP plant was also set up.

This extensive diversification and expansion drive has been fuelled by the company's compelling need to ensure full utilization of available resources while also maintaining its profitability and leadership status. Today, the company is proud to be a multi-location, multi-plant, multi-services and multi-millions company, providing much more than just fertilizers.

Since its inception the company has constantly striven to re-define its role in a dynamic environment. In the process earning a commendable reputation as an organization that not only provides just products but also the knowledge to use them wisely.

But this performance would not be possible without a strong technical capability. And in creating that firm bedrock of technological superiority the company has once again created an enviable track record.

v First joint sector Industrial Complex in India -Equity Capital of State Government 49% and public 51%

v First to erect the fertilizer plants within the shortest project completion period -Completed within a period of two years of the day of its inception

v First Fertilizer unit to be assisted by IDBI's Development Assistance Fund -As GSFC was a industrial project to secure direct and active participation of farmers in the share Capital through equity subscription of over Rs 10 million - GSFC launched a massive door to door drive and collected Rs. 10 Million

v First to adopt the Steam Naptha Reforming process for manufacture of Ammonia. It is the biggest technical contribution 

v First to manufacture DAP complex fertilizer in India.

v First to develop and use the Phospho-Gypsum Process for manufacture of Ammonium Sulphate

v First to develop indigenous catalyst for manufacture of Cyclopean. It is an intermediate for manufacture of caprolactam

v First to set up the caprolactam Plant in India - in 1974 decided to diversify to caprolactam production which is a raw material for Nylon Yarn and Tyre Cord.

v First to utilize indigenous Rock Phosphate  for manufacture Phosphoric Acid

v First to set up effluent treatment facilities for removing Phosphate and Fluroide from liquid effluent

v First to use indigenous Primary Steam Naptha Reformer Tubes and indigenous Primary Steam Naptha reforming Catalyst in the Ammonia plants

v First to Recover Argon from Purge Gas In 1981 Company entered market of industrial gases by making Argon Gas Used for Welding in Engg. and Fabrication industries

v First to establish the Melamine Plant

v First largest Nylon -6 Plant for Engg., Plastics Based on know of M/s Inventa of Switzerland - Build  at a cost of Rs. 140 Million the product have variety of application in number of industries.

v First to launch its own chain of marketing outlets and agriculture extension services to farmers for optimum selection of fertilizers seeds and other inputs.

v First  to adopt DCDA (Double Contract Double Absorption) technology in Sulphuric Acid production to avoid Sulphur Dioxide emission

v First to adopt Enriched Air Technology for Cyclohexanone Plant in Asia.

AWARDS and CERTIFICATE

ICMA Awards 1976	Forwards Development Technology
ICMA Award 1976	Social Progress in Chemical Industry
ASSOCHAM Award 1979	Outstanding work in Rural Development and Agricultural Activities
FAI Award 1980	Second best performance in Phosphatic Production
FAI Award 1981	Second best performance in Phosphatic Production
NPC Award 1982	Second best performance in Productivity
FAI Award 1982	Best  performance in  Phosphatic Production
Arjuna Award 1982	GSFC Player's Best Performance in Badminton
ASSOCHAM Award 1983	Consumer Protection and Service through an Appropriate Distribution Network
1985 Hindustan  Award	GSFC scientist at the Most Outstanding Chemical Engineer of the year by Indian Institute of Chemical. Engineers.
Industrial Relation Award 1988	from All India Organization of Employers - New Delhi
1989-90	GSFC was ranked as "The Company of the year".
NPC Award 1991-92	Best  Performance in Biofertilizer Production And National Activities
FAI Award 1991-92	for Environment Control
Energy Conservation Award 1991-92	First prize for energy Conservation in Fertilizer Sector by Department of Power, Government of India
NPC Award 1992-93	Best in Biofertilizer Production and National Activities
JNM Award 1992-93	Environment Control Award from Jawaharlal Nehru Memorial Hyderabad
NPC Award 1993-94	Best Performance in Biofertilizer production and National Activities
NPC Award 1994-95	Best Performance in Biofertilizer production and National Activities
ISO 9002:1994 in 1996	For Manufacture and Marketing of Caprolcatam (Flakes and Crystals), Melamine, Sulphuric Acid, Oleum, Ammonia, Argon, Urea and Mek-Oxime
FAI Runners up Award 1996-97	For Production and performance for Nitrogenous group of plants (Ammonia, Urea Plants).
FAI Award 1996-97	Best Phosphatic Fertilizer
NPC Award 1996-97	Best performance in Fertilizer Industries
FAI Award 1996-97	Best performance in Biofertilizer
JNMN Award 1997-98	Best Product and Productivity Gold Award from Jawaharlal Nehru Memorial National Award
FAI Award 1998	Best Performance in Production, Promotion and Marketing of Bio-Fertilizer and was identical as "Ideal Model Unit" by Government of India  and FAI
National Safety Award 1998	British Safety Council awarded this for maintaining a good record, which was significantly better than the national average.
ISO 9001:2000 in 2002	For Manufacture and Marketing of Caprolcatam (Flakes and Crystals), Melamine, Nylon-6, Sulphuric Acid, Oleum, Ammonia, Argon, Carbon Di-oxide, Urea, MEK-Oxime and other associated utilities and offsites
Moreover several trophies and shields have also been awarded every year at state and related level competition shows on Horiculture, Vegetables, Fruits and Flowers at different places
GSFC has also received 40 state 12 National and 18 International Safety Awards

ACHIEVEMENTS IN THE FIELD OF SAFETY

AWARDS EARNED FROM NATIONAL SAFETY COUNCIL, CHICAGO, U.S.A.

SR. NO	YEAR	NAME OF AWARD	AWARD ISSUED FOR
1	1983	Award of Merit	For achieving 2,701,726 Accident free manhours from June 20,1983 to Sept. 12,1983
2	1984	Award of Merit	For achieving 1,395,700 Accident free manhours from Sept. 1,1984 to Oct. 19,1984
3	1985	Award of Honour	For achieving 3,284,745 Accident free manhours from May 17,1985 to Aug. 28,1985
4	1986	Award of Honour	For achieving 6,544,943 Accident free manhours from Dec. 26, 1985 to July 8,1986
5	1987	Award of Honour	For overall performance in safety based on Evaluation of Occupational injury and illness
			incidence rates of the year - 1986
6	1989	Award of Honour	For achieving 4,808,951 Accident free manhours from Oct. 25,1988 to March ,1989
7	1990	Award of Honour	For achieving 4,539,103 Accident free manhours from March 16, 1990 to July 25,1990
8	1990	Award of Merit	A noteworthy Safety performance for the year 199
9	1991	Award of Merit	For overall performance in safety based on Evaluation of Occupational injury and illness
			incidence rates of the year - 1986
10	1991	Award of Honour	For achieving 3,051,449 Accident free manhours from Nov. 13, 1990 to Feb. 7,1991
11	1992	Award of Merit	For achieving 2,877,305 Accident free manhours from Jan. 12, 1992 to March 28, 1992
12	1992	Award of Honour	For achieving 3,381,391 Accident free manhours from June 14, 1992 to Sept. 4, 1992
13	1993	Award of Honour	For achieving 4,204,108 Accident free manhours from Nov. 12, 1992 to Feb. 22, 1993
14	1994	Award of Merit	A noteworthy Safety performance for the year 1994
15	1995	Award of Honour	For achieving 4,585,960 Accident free manhours from March 15, 1995 to July 7, 1995
16	1997	Award of Honour	For achieving 3,143,871 Accident free manhours from Sept. 9, 1997 to Dec. 10, 1997
17	1998	Award of Honour	For achieving 4,905,334 Accident free manhours from Jan. 2, 1998 to May 18, 1998
18	1999	Perfect Record Award	For achieving 4,037,100 Accident free manhours from Jan. 3, 1999 to April 18, 1999
19	1999	Significant Improvement Award	For out standing safety performance in the year 1999

AWARDS EARNED FROM BRITISH SAFETY COUNCIL, U.K.
SR.NO	YEAR	NAME OF AWARD	AWARD ISSUED FOR
1	1998	Safety Award	For better record in the field of Health and Safety
2	1999	Safety Award	For better record in the field of Health and Safety

National Awards

AWARDS EARNED FROM NATIONAL SAFETY COUNCIL, GOVERNMENT OF INDIA (MINISTRY OF LABOUR)

SR. NO	YEAR	NAME OF AWARD	AWARD ISSUED FOR
1	1974	Certificate of Commendation	For achieving longest accident free period
2	1975	Certificate of Commendation	For achieving more than one million manhours without accident
3	1977	Certificate of Commendation	For achieving longest accident free period
4	1978	Certificate of Commendation	For achieving longest accident free period
5	1980	Certificate of Commendation	For achieving longest accident free period
6	1982	Certificate of Commendation	For achieving longest accident free period
7	1983	Certificate of Commendation	For achieving longest accident free period
8	1984	Certificate of Commendation	For achieving longest accident free period
9	1985	Certificate of Commendation	For achieving longest accident free period
10	1986	Certificate of Commendation	For achieving longest accident free period
11	1988	Certificate of Commendation	For achieving longest accident free period
12	1990	Certificate of Commendation	For achieving longest accident free period

AWARDS EARNED FROM GUJARAT SAFETY COUNCIL, VADODARA

SR.NO	YEAR	NAME OF AWARD	AWARD ISSUED FOR
1	1980	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
2	1982	Certificate of Honour	For achieving more than 3 million Accident free man hours
3	1983	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
4	1983	Certificate of Merit	For achieving more than 2 million Accident free man hours
5	1983	Certificate of Merit	For reduction in Frequency Rate
6	1984	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
7	1985	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
8	1986	Certificate of Honour	For achieving more than 3 million Accident free man hours
9	1986	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
10	1986	Certificate of Merit	For achieving more than 2 million Accident free man hours
11	1986	Spl. Commendation Certificate	For reduction in Frequency Rate
12	1986	Running Trophy	For achieving overall Good Safety Performance
13	1987	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
14	1987	Certificate of Honour	For achieving more than 3 million Accident free man hours
15	1987	Running Trophy	For achieving lowest Disabling Injury Index (D.I.I.)
16	1988	Certification of Appreciation	For achieving more than 1 million Accident free man hours
17	1988	Certificate of Merit	For achieving more than 2 million Accident free man hours
18	1988	Running Trophy	For achieving lowest Disabling Injury Index (D.I.I.)
19	1989	Running Trophy	For achieving lowest Disabling Injury Index (D.I.I.)
20	1989	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
21	1989	Certificate of Merit	For achieving more than 2 million Accident free man hours
22	1990	Running Trophy	For achieving lowest Disabling Injury Index (D.I.I.)
23	1990	Certificate of Merit	For achieving more than 2 million Accident free man hours
24	1990	Certificate of Honour	For achieving more than 3 million Accident free man hours
25	1991	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
26	1991	Certificate of Merit	Fore achieving more than 2 million Accident free han hours
27	1991	Certificate of Honour	For achieving more than 3 million Accident free man hours
28	1991	Running Trophy	For achieving lowest Disabling Injury Index (D.I.I.)
29	1992	Certificate of Appreciation	Fore achieving more than 1 million Accident free han hours
30	1992	Certificate of Merit	For achieving more than 2 million Accident free man hours
31	1992	Certificate of Honour	For achieving more than 3 million Accident free man hours
32	1993	Certificate of Merit	For achieving more than 2 million Accident free han hours
33	1993	Certificate of Honour	For achieving more than 3 million Accident free man hours
34	1993	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
35	1994	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
36	1994	Certificate of Honour	For achieving more than 3 million Accident free man hours
37	1995	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
38	1995	Certificate of Honour	For achieving more than 3 million Accident free man hours
39	1996	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
40	1996	Certificate of Honour	For achieving more than 3 million Accident free man hours
41	1997	Certificate of Appreciation	For achieving more than 1 million Accident free man hours
42	1997	Certificate of Honour	For achieving more than 3 million Accident free man hours
43	1997	Certificate of Merit	For achieving more than 2 million Accident free man hours

Gujarat State Investments Limited	30159981	37.84
Reliance Cap. Trustee Co. Limited A/c. Reliance Growth Fund	3377603	4.24
Reliance Cap. Trustee Co. Limited A/c. Reliance Vision Fund	2920963	3.67
Prudential ICICI Trust Limited - Discovery Fund	2000000	2.51
Life Insurance Corp. of India	6904074	8.66
General Insurance Corp. of India	950822	1.19
National Insurance Co. Limited	955784	1.20
United India Insurance Co. Limited	891087	1.12
New India Assurance Co. Limited	1585519	1.99
Gujarat Narmada Valley Fert.Co.Limited	1500000	1.88
Gujarat Alkalies and Chemicals Limited	1500000	1.88
Gujarat Mineral Development Corp.	1000000	1.25
Uno Metals Limited	1870900	2.35
AKG Finvest Limited	1700000	2.13
TOTAL	27156752	34.08

With a market presence exceeding 35 years the company has carved out an irreplaceable image for itself on the Indian marketing scene. Integration of technologies and brilliant innovative research ensures that the products touch all walks of life. From household consumer to core industrial Consumer, the company continuously fulfills multifold needs of the market.

The company 's incessant strive for product diversification and value addition has created a product mix ranging from more than 24 brands of fertilizers to petrochemicals, chemicals, industrial gases, plastics, Fibers and other products.

Conforming to the strictest international standards the company continuously achieves and maintains Best Quality, Superior packaging, Prompt deliveries and services of highest standards for every product. This claim is well substantiated by a string of National and International Awards, but TOTAL Customer Satisfaction is the MOST VALUED AWARD at the company. 

The company today stands for superior quality with many of its products being ISO 9001 certified. The company  believes in providing highest value for the Customer's money through economies of scale, continuous product improvement and Value addition to the products.

Undoubtedly, the company is a respectable player in the emerging scenario of the competitive and globalized industry.

The company has Customer Service Centers both in Agriculture Field (AD and AS) and Industrial Field (ADC) to disseminate the latest technical knowledge for efficient use of the Products.

CUSTOMER CARE

AGRICULTURAL

GSFC not only offers fertilizers but also happiness to the Farmers. This is the prime marketing objective of GSFC`s Agro-products. This is achieved by the Sales supporting Network consisting of 300 warehouses across the country connected through the well-planned routes to reach the interiors and a strong marketing network of 140 Farm Information Centre-Cum-Depots, where products and information are made available to the farmers through more than 200 experienced Agro-Professionals.

Training is the vital factor in GSFC`s customer relationship programme. The company  regularly educates the farmers on the proper use of fertilizers and other agricultural inputs, the latest advances in agricultural field through individual and group meetings, Technical Demonstrations, field meetings, trade exhibitions and magazine "Krishi Jivan" published regularly to keep in touch with them. The company conducts Farm Youth Training Programme of 7 days in collaboration with the Gujarat Agriculture University, free of charge and rural youth are trained to improve Productivity through Technology. These trained youth are motivated to form Sardar Yuva Kriushak Hurmey (SUKH) Clubs for overall development of their respective villages. More than 2107 participants from over 1932 villages have benefited so far. The company 's commitment is prominently reflected by the services offered for Testing of Water and Soil through its mobile vans and continuous development of new high yield hybrid seeds for better quality crops.

INDUSTRY

GSFC offers industrial products and Pre-Post Sales services through Application Development Centre suited to various industries and applications. Prospective Entrepreneurs are trained in various fields viz. Mould designing, processing of our products, which are tested through well equipped laboratories. Dissemination of the information on Products and Applications through organizing Consumer meets, technical brochures, seminars and trade expositions for our customers is a continuous feature of the company’s Customer care programme.

For AD and AS Activities

Agro Development and Agro Services Department
Gujarat State Fertilizers and Chemicals Limited,
P. O. Fertilizernagar 391 750, Dist. Vadodara, Gujarat, India.
Phone No. : 91-22-2242051, 2242451, 2242651, 2242751, 2242641
Extn. : 2974 / 2484 / 2873 / 2653 / 3036
e-mail: adas@gsfcLimitedcom

For ADC Activities

Application Development Centre

Gujarat State Fertilizers and Chemicals Limited,
P. O. Fertilizernagar 391 750, Dist. Vadodara, Gujarat, India.

Phone No. : 91-22-2242051, 2242451, 2242651, 2242751, 2242641

Extn. 3171/3453

Fax No.: 0265-2242834/2243943

E-mail: rcmathur@gsfcLimitedcom

PRESS RELEASE

GSFC bags National Award for Excellence in Cost Management for 2006

Date: July 02, 07

It is our pleasure to declare that GSFC has received National Award for Excellence in Cost Management, 2006 from the Institute of Cost and Works Accountants of India, New Delhi. This is a Third Award in the category of Govt. Manufacturing Big Companies - having turn over more than Rs.2500.000 millions. GSFC was selected for conferring this Award amidst the competition from Top Public Sector Undertakings of the country. The Award was given away on 2nd July, 2007 by the Hon’ble Minister of Corporate Affairs, Shri Premchand Gupta. Dignitaries from Govt. of India and other eminent persons were present for this function held at Vigyan Bhavan, New Delhi

National Productivity Award

Date: May 24, 07

Honorable Union Minister of State for Agriculture Shri (Dr.) Akhilesh Prasad Singh presented National Productivity Award ‘Second Best Performing Unit’ for the year 2005 – 06 to Shri P. K. Taneja, IAS – Managing Director, GSFC during grand ceremony at Vigyan Bhawan, New Delhi on 24th May 2007.

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. 42.72
UK Pound	1	Rs. 83.96
Euro	1	Rs. 66.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	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