1. Summary Information

		Country	India
Company Name	NOCIL LIMITED	Principal Name 1	Mr. Arvind N. Mafatlal
Status	Satisfactory	Principal Name 2	Mr. Rohit Arora
		Registration #	11-012003
Street Address	Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate, Mumbai – 400020, Maharashtra, India
Established Date	11.05.1961	SIC Code	--
Telephone#	91-22-66364062	Business Style 1	Manufacturer
Fax #	91-22-66364060/ 56364056	Business Style 2	Supplier
Homepage	www.nocilrubberchemicals.com	Product Name 1	Amine Function Compounds
# of employees	445 (approximately)	Product Name 2	Sulphonamides
Paid up capital	Rs. 1,607,870,000/-	Product Name 3	Heterocyclic Compounds with Nitrogen Heteroatom(s)
Shareholders	Promoter Group - 32.83% Public shareholding - 67.17%	Banking	Axis Bank Limited
Public Limited Corp.	Yes	Business Period	50 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	Ba (55)
Related Company
Relation	Country	Company Name	CEO
Associates :	--	Navin Fluorine International Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,899,205,000	Current Liabilities	1,144,736,000
Inventories	1,066,519,000	Long-term Liabilities	0
Fixed Assets	784,897,000	Other Liabilities	209,582,000
Deferred Assets	0	Total Liabilities	1,354,318,000
Invest& other Assets	704,287,000	Retained Earnings	1,492,720,000
		Net Worth	3,100,590,000
Total Assets	4,454,908,000	Total Liab. & Equity	4,454,908,000
Total Assets (Previous Year)	4,233,506,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	4,485,889,000	Net Profit	333,181,000
Sales(Previous yr)	4,359,864,000	Net Profit(Prev.yr)	340,268,000

MIRA INFORM REPORT

Report Date :

02.08.2011

IDENTIFICATION DETAILS

Name :	NOCIL LIMITED (w.e.f 29.11.2007)
Formerly Known As :	NATIONAL ORGANIC CHEMICAL INDUSTRIES LIMITED
Registered Office :	Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.05.1961
Com. Reg. No.:	11-012003
Paid-up Capital :	Rs. 1607.870 Millions
CIN No.: [Company Identification No.]	L99999MH1961PLC012003
TAN No.: [Tax Deduction & Collection Account No.]	MUMN00133A mumn10739b
PAN No.: [Permanent Account No.]	AAACN4912E
Legal Form :	A Public Limited Liability Company. The Company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Supplier of Rubber Chemicals.
No. of Employees :	445 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 12000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered/ Head Office/ Export Department :	Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-66364062
Fax No.:	91-22-66364060/ 56364056
E-Mail :	vikas.gupte@nocilindia.com investorcare@nocilindia.com karnik.um@nocilindia.com rcdmktg@nocilindia.com gadgilrm@nocilindia.com rakesh@nocilindia.com
Website :	www.nocilrubberchemicals.com
Factory/ Marketing Technical Service :	v Petrochemical Plant C-37, Trans Thane Creek Industrial Area, Off. Thane Belapur Road, Pawne Village, Post Turbhe, Navi Mumbai 400 701, Maharashtra, India Tel : 91-22-27672735 / 66364062 / 66730551 Fax : 91-22-27671865 / 66364060 / 27671862 E-mail: investorcare@nocilindia.com deo@nocilindia.com hse@nocilindia.com parvatikar@nocilindia.com inamdar@nocilindia.com dsdesai@nocilindia.com Websites: www.natocil.com v Rubber Chemicals Plant  C-37, Trans-Thane Creek Industrial Area, Off Thane Belapur Road, Navi, Mumbai -400705, Maharashtra, India. v Plastic Products Plant  C-1, MIDC Industrial Area, Post Shivani, District Akola – 444104, Maharashtra, India.

DIRECTORS

As On 31.03.2011

Name :	Mr. Arvind N. Mafatlal
Designation :	Chairman - Emeritus
Name :	Mr. Hrishikesh A. Mafatlal
Designation :	Chairman
Name :	Mr. Rohit Arora
Designation :	Director
Name :	Mr. T.D. Chaudhuri
Designation :	Director - (IIBI Nominee)
Name :	Mr. Berjis Desai
Designation :	Director
Name :	Mr. V. R. Gupte
Designation :	Director
Name :	Maj. Gen. (Retd) S.C.N. Jatar
Designation :	Director (ICICI Bank Nominee)
Name :	Mr. S. K. Mahapatra
Designation :	Director - (GIC Nominee)
Name :	Mr. Vishad P. Mafatlal
Designation :	Director
Name :	Mr. N. Sankar
Designation :	Director
Name :	Mr. C.R. Gupte
Designation :	Managing Director
Name :	Mr. U.M. Karnik
Designation :	Director
Name :	Mr. C. L. Jain
Designation :	Director - (GIC Nominee)
Name :	Mr. D N Mungale
Designation :	Director
Name :	P. V. Bhide
Designation :	Director (w.e.f 26.10.2010)

KEY EXECUTIVES

Name :	V. K. Gupte
Designation :	Company Secretary
Name :	Mr. S. R. Deo
Designation :	Vice President - Technical
Name :	Mr. R. M. Desai
Designation :	Assistant Vice President – Production and Personnel
Name :	Mr. S. R. Iyer
Designation :	Vice President -Manufacturing
Name :	Mr. U. M. Karnik
Designation :	Vice President – Legal and Company Secretary
Name :	Mr. S. D. Ghate
Designation :	General Manager – Personnel and Administration
Name :	Mr. C. S. Inamdar
Designation :	Assistant Vice President - Marketing Technical Services
Name :	Mr. A. Sivaraman
Designation :	Assistant Vice President - Purchase
Name :	Mr. P. Srinivasan
Designation :	Vice President - Finance
Name :	Mr. C Nandi
Designation :	Assistant Vice President – Research and Development

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	797,600	0.50
Bodies Corporate	51,981,179	32.33
Sub Total	52,778,779	32.83
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	52,778,779	32.83
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	44,530	0.03
Financial Institutions / Banks	3,284,137	2.04
Central Government / State Government(s)	880	-
Insurance Companies	5,290,161	3.29
Foreign Institutional Investors	1,684,475	1.05
Sub Total	10,304,183	6.41
(2) Non-Institutions
Bodies Corporate	14,636,941	9.10
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	65,888,715	40.98
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	15,779,112	9.81
Any Others (Specify)	1,399,250	0.87
Overseas Corporate Bodies	5,000	-
Non Resident Indians	1,394,250	0.87
Sub Total	97,704,018	60.77
Total Public shareholding (B)	108,008,201	67.17
Total (A)+(B)	160,786,980	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	160,786,980	-

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Rubber Chemicals.

Products :

Items Code No. (ITC Code)	Product Description
29215190	Amine Function Compounds
29350090	Sulphonamides
29334900	Heterocyclic Compounds with Nitrogen Heteroatom(s)

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Rubber Chemicals and their Intermediaries	MT	N.A.	38950@	38264*

@ Installed capacity is as certified by the management.

* Includes 5358 MT (previous year 5,174 MT) converted for the Company by third parties.

GENERAL INFORMATION

No. of Employees :

445 (approximately)

Bankers :

• Axis Bank Limited
• Export-Import Bank of India
• HDFC Bank Limited
• Indian Overseas Bank

• State Bank of India, Madame Cama Road, Mumbai-400021, Maharashtra, India

Facilities :

UNSECURED LOANS	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Short Term Loans – Others
Term Loan from a financial Institutions	--	167.107
Total	--	167.107

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Solicitors and Advocates :	Vigil Juris PDS Legal
Subsidiaries:	Ensen Holdings Limited Urvija Investments Limited PIL Chemicals Private Limited
Associates :	Navin Fluorine International Limited Mafatlal Industries Limited

CAPITAL STRUCTURE

As On 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000000	Equity Shares	Rs.10/-each	Rs.12000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160786980	Equity Shares	Rs.10/-each	Rs.1607.870 millions

Notes : of the above :

(a) 97,302,850 shares allotted as fully paid-up by way of bonus shares by capitalisation of General Reserve and Share Premium Account

(b) 13,302,850 shares allotted to the shareholders of Polyolefins Industries Limited pursuant to the scheme of amalgamation without payment in cash.

(c) 38,181,280 shares allotted to erstwhile Secured Lenders without payment in cash in terms of the scheme of arrangement approved by the Bombay High Court.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1607.870	1607.870	1607.870
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1492.720	1271.662	1044.261
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3100.590	2879.532	2652.131
LOAN FUNDS
1] Secured Loans		0.000	0.000	114.865
2] Unsecured Loans		0.000	167.107	199.958
TOTAL BORROWING		0.000	167.107	314.823
DEFERRED TAX LIABILITIES		209.582	216.735	197.439
TOTAL		3310.172	3263.374	3164.393
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		784.897	793.407	826.653
Capital work-in-progress		455.974	236.639	218.977
INVESTMENT		248.313	248.313	248.313
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1066.519	826.547	693.910
	Sundry Debtors	866.753	861.138	823.422
	Cash & Bank Balances	432.528	503.096	258.106
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	599.924	764.366	928.926
Total Current Assets		2965.724	2955.147	2704.364
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	536.418	410.628	357.649
	Other Current Liabilities	30.625	244.734	182.419
	Provisions	302.068	314.770	293.846
Total Current Liabilities		1144.736	970.132	833.914
Net Current Assets		1820.988	1985.015	833.914
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3310.172	3263.374	3164.393

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4485.889	4359.864	4653.762
		Other Income	135.195	100.905	144.250
		TOTAL (A)	4621.084	4460.769	4798.012
Less	EXPENSES
		Manufacturing and Other Expenses	4203.434	3893.223	4130.974
		Purchase of Trading Products	21.567	19.817	26.126
		Increase / Decrease in Stock	(165.130)	(31.308)	(16.536)
		TOTAL (B)	4059.871	3881.732	4140.564
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		561.213	579.037	657.448
Less	FINANCIAL EXPENSES (D)		1.245	1.473	39.838
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		559.968	577.564	617.610
Less/ Add	DEPRECIATION/ AMORTISATION (F)		79.851	76.253	76.108
	PROFIT BEFORE TAX (E-F) (G)		480.117	501.311	541.502
Less	TAX (H)		146.936	161.043	179.887
	PROFIT AFTER TAX (G-H) (I)		333.181	340.268	361.615
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		438.570	211.169	(37.579)
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	96.472	96.472	96.472
		Corporate tax on dividend	15.651	16.395	16.395
	BALANCE CARRIED TO THE B/S		659.628	438.570	211.169
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1780.836	1834.441	2321.704
	TOTAL EARNINGS		1780.836	1834.441	2321.704
	IMPORTS
		Raw Materials	1338.418	1203.988	1200.707
		Stores & Spares	4.429	0.826	3.329
		Capital Goods	5.674	7.213	5.784
	TOTAL IMPORTS		1348.521	1212.027	1209.820
	Earnings Per Share (Rs.)		2.07	2.12	2.25

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter
Net Sales	1191.800
Total Expenditure	1074.400
PBIDT (Excl OI)	117.400
Other Income	14.600
Operating Profit	132.000
Interest	0.300
PBDT	131.700
Depreciation	19.500
Profit Before Tax	112.200
Tax	34.900
Profit After Tax	77.300
Net Profit	77.300

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.21	7.63	7.54
Net Profit Margin (PBT/Sales)	(%)	10.70	11.50	11.64
Return on Total Assets (PBT/Total Assets}	(%)	12.80	13.37	15.34
Return on Investment (ROI) (PBT/Networth)		0.15	0.17	0.20
Debt Equity Ratio (Total Liability/Networth)		0.37	0.39	0.43
Current Ratio (Current Asset/Current Liability)		2.59	3.05	3.24

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject is manufacturer and supplier of rubber chemicals. The company is known for product their quality, customer services and commitment to environmental care. The company is a part of Arvind Mafatlal Group of Industries, a well-known Business House in India with diversified business interests. The company is engaged in the manufacturing and sale of rubber chemicals. They are having their manufacturing facilities in the TTC industrial area, Thane and ancillary manufacturing facilities in the GIDC industrial area, Vapi. They offer a range of rubber chemicals, such as PILFLex, which is a rubber anti-degradant, PILnox, which is a rubber antioxidant, PILcure, which is a rubber accelerator, and PILGarD, which is a rubber pre-vulcanization inhibitor. Their subsidiaries include Ensen Holdings Limited, Urvija Investments Limited and PIL Chemicals Private Limited

Subject was incorporated in the year 1961 as National Organic Chemical Industries Limited. In the year 1968, the company commenced their production of petrochemicals at company in technical collaboration with the Royal Dutch Shell Group. Polyolefins Industries Limited was incorporated in the year 1964, which produced polymers in technical collaboration with Farbwerke Hoechst AG, West Germany.

In the year 1981, MINDIA Chemicals Limited, which produced rubber chemicals merged with Polyolefins Industries Limited. In the year 1993, Polyolefins Industries Limited merged with company for synergy of operations. Also, the company became an Indian company under Arvind Mafatlal Group upon withdrawal of Shell from the company and Hoechst from Polyolefins Industries Limited Rubber Chemicals Business operates as NOCIL-RCD In the year 1995, NOCIL-RCD consolidated their position as an important supplier of rubber chemicals in the global market.

In the year 2002, the company decided to close down their Petrochemicals Division due to uneconomical and unviable operations on account of their sub-optimal capacity.

During the year 2005-06, as per the scheme of arrangement, the net current assets of the Plastic Products Division have been transferred to RELPOL Plastics Products Limited (formerly known as NOCIL Petrochemicals Limited, a business associate of Reliance Industries Limited) with effect from July 20, 2005.

During the year 2006-07, the company acquired the entire shareholding of PIL Chemicals Private Limited (formerly known as Sushripada Plastics Private Limited) for Rs.195.000 Millions. Thus, PIL Chemicals Private Limited became a wholly owned subsidiary of the company. PIL Chemicals has a factory in Vapi (Gujarat), which manufactures some of the products required by the company. Also, the company acquired 60 acre plot of land at Dahej near Bharuch in the designated chemical zone of Gujarat Industrial Development Corporation to take care of their future expansion plans.

During the year 2007-08, the name of the company was changed from National Organic Chemical Industries Limited to Subject with effect from 14.09.2007. The company's new project at Dahej in Gujarat is progressing well.

PERFORMANCE OF THE COMPANY

The turnover of the Company for the year was Rs. 4800.000 millions as compared to Rs. 4600.000 millions, representing an increase of about 4.50% over the previous year. The production of rubber chemicals and their intermediates was 38264 MT for the year as against 36697 MT, representing an increase of about 4% as compared to the previous year.

During the year 2010-11, the company witnessed relatively stable business conditions in the first half of the year. However, right from the beginning of the second half, prices of most of its inputs started hardening on the back of surge in the crude oil price as well as the prices of various derivatives of crude oil.

During the year, the Sales volumes in the Domestic segment witnessed a growth of 5% as compared to the previous year. This was despite the fact that many small Non-Tyre Rubber units were forced to cut back on production and had to curtail their business operations during the year on account of the huge surge witnessed in the price of Natural Rubber. This resulted in either no growth or very small growth in some of there Non-Tyre market segments. At the same time, they also continue to face very aggressive competition from the dumped Imports of Rubber Chemicals into India. Whilst they endeavored to maintain the selling prices for most part of the year, margins remained under significant pressure due to the continued dumping of the products.

In order to be able to participate in the large domestic demand which they have not been able to access on account of the dumped imports, they, during the year, initiated a Mid Term Anti Dumping Petition on Imports sourced from Korea and also a Safeguards Petition for one of the main products of the Company. The concerned Authorities have accepted there petitions and have already initiated investigations in this connection. Both these matters are currently at an advance stage of completion and their final findings are due shortly. They are hopeful of getting some relief in these cases which should help us in improving there capacity utilization and market share for the said product. The Antidumping authorities have also concluded their proceedings of the Sunset review for some of the products of the company on which Anti-Dumping Duties had been imposed five years ago.

They are happy to inform you that the authorities have recommended continuation of the said anti dumping duties on some products for a further period of 5 years. However, duty has been withdrawn on one product from one source. The final customs notification to this effect is yet to be issued. As stated earlier, there input prices rose sharply as a result of rising Crude and other feedstock prices. They are happy to inform you that despite the cost increases, through a combination of timely booking of orders at best possible prices, better management of various operational parameters, coupled with optimization of utilities management, the margins for the year remained more or less at the similar level of the previous year.

They are happy to inform you that, after evaluating the Company’s overall performance, the Credit Rating Agency, CARE has improved there Credit Rating for Short term borrowings from PR 2+ to PR 1, while retaining the rating at A for Long Term borrowings.

EXPORTS

During the year, the Company continued to export significant volumes in view of inadequate demand for the product in the domestic market as a consequence of aggressive dumping of a number of rubber chemicals in the Country. The exports at Rs. 1810.000 millions were marginally lower than Rs. 1860.000 millions in the previous year. The export volumes though were marginally higher by about 1% as compared to the previous year. The reduction in value is mainly due to a combination of product mix and appreciation of Indian Rupee. The Company hopes to optimize its export and local presence in future once the company is adequately protected against dumping of its product.

The continued news about the not so healthy economic situation in the western world and Japan has also come in the way of there increasing export volumes beyond the levels existing before the recession of 2008-09. The economic recovery in these markets continues to be fragile. They have however tapped new destinations due to which they could achieve the small growth in Sales Volumes for the year.

BUSINESS SCENARIO

Although the global economic scenario has shown some signs of improvement, they need to watch the developments in the coming year carefully.

The Rubber Chemicals market continues to remain competitive and dumping by international suppliers into India continues to be a matter of concern.

The competitors from China, the European region as well as South Korea continue to be aggressive in pricing in the Indian Market. The company, in response to this aggressive pricing, decided not to participate in markets where the prices were at totally unrealistic levels.

Despite these problems, the Board is pleased to convey that most of the major international tyre customers continue to rely on and do healthy business with the Company for their regular requirements of rubber chemicals. The Company enjoys good acceptance of its products with all its domestic and international customers and they in turn have accepted the status of the Company as a dependable manufacturer of rubber chemicals with very high technological capabilities.

PROJECT

During the year, the Management appointed an independent reputed agency, which is approved by Banks, to do an evaluation of Techno Commercial feasibility of its Project in Dahej. The said agency has since submitted its report thereon. Further, the Company has also concluded the financial closure for the capital Investment required for the Project, estimated at Rs. 2500.000 Millions. The Civil Construction of the Plant is almost at the final stages of completion. The Company has also placed orders/contracts for delivery of most of the machineries and equipments. All major long delivery equipment orders have been released well in time to ensure their timely arrival. Most of the infrastructural work too has been completed. The project is expected to be completed and the new plant expected to be commissioned within the next twelve months. On its successful implementation, the Company will make efforts to strengthen its position not only in terms of higher market share but also in terms of more cost effective and cleaner processes.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC REVIEW

In the aftermath of the global financial crisis, Government of India tried to stimulate domestic demand by increasing Public expenditure. This initially helped revive growth and confidence in the economy. However, during this period some countries in Europe experienced debt crisis. This coupled with soaring commodity prices, crude oil and petroleum products prices did affect the investment sentiment in general. Moreover, the Indian economy is compelled to take suitable measures to contain the inflationary pressures, more particularly on food items as it affects a very large cross section of the society. This consequently may result in rise in input costs, interest costs etc. which ultimately may affect the overall growth in the near term.

The global economy has started showing some signs of recovery after one of the deepest global recession ever seen, though some of the signs still appear fragile. Partly, as a consequence of this pick-up, they witnessed, particularly in the 2nd half of the financial year, a steep rise in the prices of all major commodities such as oil, steel, cement etc. Most of there Raw Materials and other input prices also witnessed substantial increases.

The Indian economy, and more particularly, the Automotive and related segments continued to display stronger growth than that seen in most of the other countries across the world. It is surely heartening to note that India’s Index of Industrial Production showed a growth of 10.4% for the year as a whole indicating that growth has regained its momentum. Based on this confidence, growth for the next fiscal is forecast at about 9%.

RUBBER CHEMICALS INDUSTRY:

In line with global automobile industry trends, rubber chemicals also witnessed similar buoyant demand. However, the rubber chemicals industry at the same time, also experienced stiff challenges by way of production cuts, more particularly from the Non-Tyre sector in view of the all time high Natural/Synthetic Rubber prices. In view of the recent investments in capacity expansion announced by all tyre majors in the Indian Market, the Domestic demand for rubber chemicals continued to show a healthy trend quarter over quarter. Exports volumes however remained more or less flat as compared to the previous year since many of the major markets had yet to recover fully. The Company, through its wide range of products and well diversified customer base, managed to hold on to its margins by better management of input costs and inventories optimisation of production in line with fast-changing demand patterns.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is engaged in the manufacture and sale of rubber chemicals and has its manufacturing facilities in the Trans Thane Creek Industrial area at Navi Mumbai, Maharashtra. In addition, the company has its wholly-owned subsidiary viz. PIL Chemicals Private Limited, having dedicated ancillary manufacturing facilities in the GIDC industrial area at Vapi, Gujarat. The Company’s regional sales offices are located in Mumbai, Delhi, Chennai and Kolkata.

The products manufactured by the Company are used by the tyre industry and all other segments of the rubber-processing industry. These chemicals not only accelerate the vulcanization of rubber, but also extend the life of rubber products. The Company is constantly working towards achieving further improvements in the quality and technological and operational efficiencies of its products and processes. It also strives to develop new products to increase its participation in the market and enlarge its product range. The company is also, through its strong research initiatives, engaged in developing new products which would meet the environmental challenges of future.

Product-wise performance

Sales in the domestic market witnessed growth of about 5% over the previous year on account of healthy growth in tyre sector. The growth was limited, to an extent, on account of shrinkage in demand from the exceptionally high level of dumped imports of Rubber Chemicals and also due to production cuts by Non-Tyre segment due to its inability to absorb the unusually high Natural Rubber prices. Natural Rubber prices during the year almost doubled to levels of over Rs. 240/- per kg which resulted in significant drop in business operations of quite a few sectors of Non-Tyre industry. The Export business on the other hand has not been able to reach earlier volume - levels because of the uneven and fragile nature of the economic situation in the developed markets. However by tapping additional destinations globally, they could achieve a small growth of 1% in Sales Volumes.

On the whole, the total sales volumes showed an improvement of 3% when compared to that of the previous year. Despite severe pressures from low-priced competition, the Company managed to hold on its selling prices for most part of the year. The sustained dumping from China/Korea did affect there volumes of some of the key products and they had to align the production schedules in line with the demand from the market.

BUSINESS OUTLOOK

In view of the huge cost increases, they have made efforts to increase the selling prices from the commencement of FY 2011-12 to mitigate the cost effect. The efforts to tap new markets will enable us to improve there volumes for the next year. The significant expansion plans of all tyre majors are also likely to help us gain additional volumes. The company is also making concerted efforts to selectively enter newer markets internationally which were hitherto untapped or under-tapped. This will improve the marketing options for there products. In order to be able to access a large part of the domestic demand denied to us by dumped imports, the Company made the Mid-Term Anti-dumping Petition against imports of specific rubber chemical from S. Korea and also Safeguard Petition for one of the main products of the Company. The concerned Authorities have after considering the merits of the petition, initiated proceeding on the company petitions and are currently at the final stage of their investigations. It is hoped that the Company will get some relief from the concerned Authorities which in turn will help in getting additional market share for us.

The final findings of the Sunset review of some of the products where Anti Dumping Duties had been imposed five years ago have been announced and the authorities have recommended continuation of the anti dumping duties on some of the products/ exporters, for a further period of 5 years. The final customs notification to this effect is expected in due course.

Overall, the market for the company’s products will improve once the global economy stabilises.

FINANCIAL PERFORMANCE – OPERATIONAL

PERFORMANCE

During the year, the Company achieved a profit before tax of Rs. 480.100 millions as compared to Rs. 501.300 millions in 2009-10. The Sales Volumes increased by 3%. The Production Volumes (including Intermediates captively consumed) increased by more than 4% as compared to the previous year. Due to consistent operational performance coupled with well managed liquidity conditions, the Company could improve its short term credit rating from PR 2+ to PR 1.

Strengthening of the rupee vis-à-vis the US Dollar has put a pressure on the export realisation of the Company; however, they have mitigated this by settling all import payments out of export earnings and covering short term export receivables when rupee depreciated.

Going forward due to the high inflationary pressures and the tight money policy (rate hikes etc) announced by the Reserve Bank of India (RBI) from time to time, the interest costs are on the rise as compared to those of the previous year. As a result, all debts will be carrying relatively higher interest costs till such time the monetary situation in the country improves. However the Company being a debt free Company as of now has not experienced any higher interest costs for the year.

FIXED ASSETS

· Land Leasehold

· Building

· Plant and Machinery

· Office Equipments including computers

· Furniture, Fixtures and Equipment

· Vehicle

· Patents

WEBSITE DETAILS

PROFILE:

Subejct is a part of AMG (Arvind Mafatlal Group of Industries), a well-known Business House of India having diversified business interests.

Company commenced Rubber Chemicals manufacturing in the year 1975 in a designated Chemicals Zone about 40 km away from Mumbai City. Company today is the largest Rubber Chemicals Manufacturer in India with 'State of the Art' Technology for the manufacture of PILFLEX Antidegradants, PILNOX Antioxidants, PILCURE Accelerators, Sulfur Donor, Post Vulcanization Stabilizer and PILGARD Pre Vulcanization Inhibitor.

PHILOSOPHY

Subject is strongly committed to the Business Philosophy of ‘Ethics of Excellence’ laid down by the Arvind Mafatlal Group of Industries to which it belongs. The culture of ‘Meeting the Business Commitments even in competitive times with zero short cuts’ has been well inculcated within the organization.

As a part of Business Philosophy; Subject has laid very high emphasis on Customer focus, Quality Assurance and Health, Safety and Environmental Control. The ISO9001-ISO14001 and OHSAS-18001 certifications of NOCIL and the acknowledgements of there Excellence in Customer Service Standards by there esteemed customers are only a few steps towards there commitment to ‘Total Quality Management and Customer Satisfaction’.

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.44.05
UK Pound	1	Rs.72.40
Euro	1	Rs.63.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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		55

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.