MIRA INFORM REPORT

Report Date :

12.05.2011

IDENTIFICATION DETAILS

Name :	GULSHAN POLYOLS LIMITED
Registered Office :	9^th KM, Jansath Road, Muzaffarnagar-251001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.10.2000
Com. Reg. No.:	20-34918
Capital Investment / Paid-up Capital :	Rs. 144.239 Millions
CIN No.: [Company Identification No.]	L24231UP2000PLC034918
TAN No.: [Tax Deduction & Collection Account No.]	DELG05217C
PAN No.: [Permanent Account No.]	AABCG3954F
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Calcium Carbonate and Sorbitol.
No. of Employees :	Not Available 0

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 4200000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for 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 Office / Factory 1 :	9^th KM, Jansath Road, Muzaffarnagar-251001, Uttar Pradesh, India
Tel. No.:	91-131-3090287/ 3090380
Fax No.:	91-131-2661378
E-Mail :	naveen@gulshanindia.com nishagupta@gulshanindia.com gclmzn@gulshanindia.com
Website :	http://www.gulshanindia.com
Corporate Office :	381, FIE, Papargunj Industrial Area, New Delhi-110092, Delhi, India
Tel. No.:	91-11-32508619 / 22514751/ 22515808/ 32991997 / 32908332
Fax No.:	91-11-22157338
E-Mail :	gscldelhi@gulshanindia.com
Factory 2 :	Plot No. 762, Jhagadia Industrial Estate, Bharuch-393110, Gujarat, India
Tel. No.:	91-2645-226044/ 309585
Fax No.:	91-2645-226045
E-Mail :	gplbharuch@gulshanindia.com
Factory 3 :	Village Rampur Majri, Dhaula Kaun, District Sirimour (H.P.) - 173001
Marketing Office:	Located at: · Ahmedabad · Bangalore · Chennai · Hyderabad · Mumbai

DIRECTORS

Name :	Mrs. Mridula Jain
Designation :	Non- Executive Director
Name :	Dr. Chandra Kumar Jain
Designation :	Managing Director
Name :	Mr. Shiv Kumar Uppal
Designation :	Whole Time Director
Name :	Mr. Ajay Jain
Designation :	Non-Executive Independent Director
Name :	Mr. K K Pandey
Designation :	Chairman and Non- Executive Independent Director
Name :	Mr. A K Maheshwari
Designation :	Non-Executive Independent Director
Name :	Mr. A K Vats
Designation :	Whole Time Director
Name :	Ms. Arushi Jain
Designation :	Whole Time Director
Name :	Ms. Aditi Pasari
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Ms. Nisha Gupta
Designation :	Company Secretary
Name :	Mr. Rajesh Agarwal
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,733,237	20.52
Bodies Corporate	3,670,865	43.45
Sub Total	5,404,102	63.97
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5,404,102	63.97
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	200	-
Sub Total	200	-
(2) Non-Institutions
Bodies Corporate	822,423	9.73
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1,628,500	19.28
Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions	562,213	6.65
Any Others (Specify)	30,966	0.37
Non Resident Indians	30,816	0.36
Trusts	150	-
Sub Total	3,044,102	36.03
Total Public shareholding (B)	3,044,302	36.03
Total (A)+(B)	8,448,404	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)	8,448,404	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Calcium Carbonate and Sorbitol.

Products :

Product Description	ITC Code
Sorbitol	2905.44
Liquid Glucose and Calcium Carbonate	2505.90

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sorbitol (70%)	MT	NA	45000	43813.935
Liquid Glucose	MT	NA	10000	2031.665
Calcium Carbonate	MT	NA	138000	77628.000

GENERAL INFORMATION

Customers :

· Lakhani Shoes

· ITC Limited

· Dabur

· Hindustan Lever Limited

· Dabur

· Asian Paints Limited

· Glenmark Pharmaceuticals Limited

· Colgate – Palmolive India Limited

Bankers :

• Bank of Baroda
• IDBI Bank Limited

Facilities :

Particulars	As on 31.03.2010 Rs. In Millions	As on 31.03.2009 Rs. In Millions
Secured Loans
A. Term Loans
From Public Financial Institutions	191.813	245.658
Bank from LIC	0.000	7.097
B. Hire Purchase Finance
From Bank/ Financial Companies	11.121	9.001
C. Working Capital Loan
From Bank of Baroda	219.090	240.582
Total	422.024	502.338
Unsecured Loans	As on 31.03.2010 Rs. In Millions	As on 31.03.2009 Rs. In Millions
Fixed Deposits From Public	36.563	34.573
Dealers security	21.000	27.000
Total	57.563	61.573

Banking Relations :

Satisfactory

Auditors :

Name :

Shahid and Associates

Chartered Accountant

Address:

Muzaffarnagar, Uttar Pradesh

CAPITAL STRUCTURE

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
38000000	Equity shares	Rs. 5/- each	Rs. 190.000 Millions
250000	Zero % Redeemable Preference Shares	Rs. 10/- each	Rs. 2.500 Millions
1450000	Zero % Redeemable Preference Shares	Rs. 100/- each	Rs. 145.000 Millions
	Total		Rs. 337.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8347707	Equity shares	Rs. 5/- each	Rs. 41.739 Millions
1025000	Zero % Redeemable Preferences Shares	Rs. 100/- each	Rs. 102.500 Millions
	Total		Rs. 144.239 Millions

Notes:

Redeemable Preference Shares are to be redeemed in the 8th year from the date of their respective allotments.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		144.239	144.239	156.419
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		895.927	909.312	733.827
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1040.166	1053.551	890.246
LOAN FUNDS
1] Secured Loans		422.024	502.338	528.757
2] Unsecured Loans		57.563	61.573	67.458
TOTAL BORROWING		479.587	563.911	596.215
DEFERRED TAX LIABILITIES		81.036	86.235	44.335
TOTAL		1600.789	1703.697	1530.796
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		980.397	1118.925	886.969
Capital work-in-progress		50.581	79.097	207.222
INVESTMENT		3.684	13.684	33.114
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	184.568	191.646	132.902
	Sundry Debtors	398.728	325.100	321.955
	Cash & Bank Balances	55.174	13.918	16.630
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	65.581	65.734	75.350
Total Current Assets		704.051	596.398	546.837
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	161.809	107.025	132.381
	Provisions	0.000	27.096	46.591
Total Current Liabilities		161.809	134.121	178.972
Net Current Assets		542.242	462.277	367.865
MISCELLANEOUS EXPENSES		23.885	29.714	35.626
TOTAL		1600.789	1703.697	1530.796

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2200.921	2162.177	1797.277
		Other Income	2.844	14.815	42.404
		TOTAL (A)	2203.765	2176.992	1839.681
Less	EXPENSES
		Manufacturing Expenses	575.879	624.098	451.995
		Raw Material Consumed	769.571	656.638	535.700
		Excise Duty	117.808	192.748	193.506
		Personal	69.943	60.466	58.949
		Administrative Expenses	45.947	55.521	42.648
		Selling and Distribution Expenses	257.135	275.074	231.609
		Increase or Decrease in Stock	16.369	(42.540)	(0.938)
		TOTAL (B)	1852.652	1822.005	1513.469
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		351.113	354.987	326.212
Less	FINANCIAL EXPENSES (D)		54.635	55.126	71.558
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		296.478	299.861	254.654
Less/ Add	DEPRECIATION/ AMORTISATION (F)		150.257	66.870	59.790
	PROFIT BEFORE TAX (E-F) (G)		146.221	232.991	194.864
Less	TAX (I)		19.206	59.219	24.595
	PROFIT AFTER TAX (G-I) (J)		127.015	173.772	170.269
Less/ Add	Prior Period Expenses		0.199	0.422	1.454
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		485.870	342.287	205.910
Less	APPROPRIATIONS
		Transfer to General Reserve	150.000	20.000	9.000
		Dividend	10.435	8.348	20.034
		Tax on Dividend	1.773	1.419	3.404
	BALANCE CARRIED TO THE B/S		450.478	485.870	342.286
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	170.402	129.387	65.822
	TOTAL EARNINGS		170.402	129.387	65.822
	IMPORTS
		Raw Materials, Stores & Spares	0.319	23.114	0.000
	TOTAL IMPORTS		0.319	23.114	0.000
	Earnings Per Share (Rs.)		15.22	20.82	20.40

QUARTERLY RESULTS

PARTICULARS	30.06.2010 (1^st Quarter)	30.09.2010 (2^nd Quarter)	31.12.2010 (3^rd Quarter)
Net Sales	580.800	618.660	708.640
Total Expenditure	490.270	546.380	604.950
PBIDT (Excl OI)	90.530	72.280	103.690
Other Income	0.970	2.720	7.040
Operating Profit	91.500	75.000	110.730
Interest	11.360	8.260	9.920
Exceptional Items	4.430	4.520	5.660
PBDT	84.570	71.260	106.470
Depreciation	35.180	30.430	32.060
Profit Before Tax	49.390	40.830	74.410
Tax	6.300	13.460	4.310
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	43.090	27.370	70.100
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	43.090	27.370	70.100

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.76	7.98	9.26
Net Profit Margin (PBT/Sales)	(%)	6.64	10.78	10.84
Return on Total Assets (PBT/Total Assets}	(%)	8.68	13.58	13.59
Return on Investment (ROI) (PBT/Networth)		0.14	0.22	0.22
Debt Equity Ratio (Total Liability/Networth)		0.62	0.66	0.87
Current Ratio (Current Asset/Current Liability)		4.35	4.45	3.06

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

The Sales and Other Income for the financial year were Rs 2203.765 Millions (Previous year Rs. 2170.524 Millions). The Depreciation for the year was Rs 150.257 Millions (Previous year Rs. 66.870 Millions) and was higher by Rs 64.022 millions due to change of method of depreciation. The Cash Accruals were Rs. 265.064 millions (Previous year Rs. 230.875 millions). The Net Profit after tax was Rs. 127.015 millions (Previous year Rs. 173.772 millions). The main reason for decrease in profit for the financial year 2009-10 was increase in Provision of depreciation due to change in method of depreciation from Straight Line Method (S.L.M.)to Written Down Value Method (W.D. V)

An amount of Rs. 150.000 millions has been transferred to General Reserve Account. There have been no material changes and commitments affecting the financial position of the Company occurred between the end of the financial year and the date of this report. The Company has not given any shares to any of the employees under Employees Stock Option Scheme.

The company has no subsidiary or holding Company. During the year the business and affairs of the Company have been carried out in its normal course and no significant events have taken place, which are harmful to the business of the Company. There was no Buy-back Scheme of shares taken up by the Company during the year.

AWARDS AND RECOGNITIONS RECEIVED BY THE COMPANY DURING THE YEAR

• National Award from Limca Book of Records for setting up first 'On-Site PCC' manufacturing Plant in India.
• Kosher Certificate from Union of Orthodox Jewish Congregations of America for the product 70% Sorbitol.
• Certificate of Excellence for having achieved Largest volumes as Exporter in terms of TEUs at ICD-Ankleshwar Awarded by CONCOR.

MERGER OF SALIL INDUSTRIES LIMITED WITH THE COMPANY

Pursuant to the Scheme of Amalgamation of Salil Industries Limited with your Company, the Board of Directors of both the companies in their meeting held on 10^th October, 2009 decided and recommended to consolidate the Group Activities by merging Salil Industries Limited with Gulshan Polyols Limited based on the recommended swap ratio 30:1 i.e. One (Rs 5/- fully paid up) equity share of Gulshan Polyols Limited for every Thirty (Rs 10/-fully paid up) equity shares of Salil Industries Limited subject to the statutory approvals and compliance of applicable laws and procedures including approval of Hon'ble High Courts. Both the Companies also obtained the approval of respective Stock Exchange, Shareholders and Creditors for the proposed merger. Merger petition is in the final stage under approval process at Hon'ble High Court, Allahabad and Delhi. It would be implemented upon their approval.

MANAGEMENT DISCUSSION AND ANALYSIS

Gulshan Polyols Limited ("GPL" or "the Company" here onwards) is an industry leader operating in two business segments of inorganic chemicals. GPL is a market leader in 70% Sorbitol globally and domestic market leadership besides being a major producer of Calcium Carbonate. GPL has built these businesses on the platform of strong understanding of chemistry and intimate knowledge of customer needs. This focus on Chemistry and customer has helped GPL, develop unique competitive advantages for each of its businesses. A strong reinforcement of this belief has been recognition by industry through several awards the Company received during the year.

1. Business Environment

Subsequent to the financial crisis in 2008, the Government of India, through its stimulus packages has managed decent growth of Indian Economy. The Indian Stock Market responded well, with the Sensex crossing 16000+mark. The Utilities reported a positive investment climate in 2009, driven by the public sector and government owned utilities. Private sector, in general remained cautious about new investments in 2009.

2. Industry Structure and developments

The Company is engaged in the business of producing Sorbitol and Calcium Carbonate. Sorbitol is a water soluble polyhydric alcohol having sweet taste and high stability besides properties of humectancy and plasticizing. It finds application as input material in various industrial sectors such as Tooth Paste, Pharmaceuticals, Vitamin-C, Cosmetics, Paper and Paints etc. Calcium Carbonate (CaCOS) finds application as input material in various industrial sectors such as Tooth Paste, Pharmaceuticals, and PVC products, Rubber, Plastic, Polymer, Cable, Leather, Paper and Paints etc. The Calcium Carbonate Industry comprises organized and unorganized sectors. The un-organized sector consists of small and tiny units which are out of the purview of paying Excise Duty etc. The Company is the single largest producer of Sorbitol and Calcium Carbonate in the Country in the organized sector, which meets the requirements of all the customers in the various industries, and the customer's list includes top corporations in Tooth Paste, Pharmaceuticals, Paper and Paints etc.

The Company achieved the capacity utilization of 97%, 20%, and 56% of the installed capacities of Sorbitol, Liquid Glucose and Calcium Carbonate plant respectively. The consumer industry i.e. Tooth Paste, Pharma, Cosmetic, Paint etc have shown growth which may lead to further improved business and margins to the company. The Sales and Other Income for the financial year were Rs. 2203.765 Millions (Previous year Rs. 2170.524 Millions). The Net Profits after tax were Rs. 127.015 Millions (Previous year Rs. 173.772 Millions). The Depreciation for the year was Rs. 150.257 Millions (Previous year Rs. 66.870 Millions). The cash accruals were Rs..265.064 Millions (previous year Rs. 230.875 Millions) showing a substantial increase of 15%.

The Company is proud to bring in India the international trend currently prevalent in the global paper industry and has set up an India's first Onsite Percipated Calcium Carbonate (PCC) plant in the paper industry. To meet the increased, demand of Activated Calcium Carbonate (ACC) the Company has also set up an Activated Calcium Carbonate (ACC) Plant at Ponta Sahib (Himachal Pradesh) heralding a new era in Calcium Carbonate industry and opening new vistas for growth.

3. Product wise performance

The Company produces Sorbitot, Liquid Glucose and Calcium Carbonate. During the year, the company produced a total of 43814 MT of Sorbitol with over 11% growth against the previous year production of 39614 MT. The sales were also higher at 43429 MT against previous year sales of 39702 MT.

The Company produced a total of 2032 MT of Liquid Glucose against the previous year production of 3132 MT. The sales were 2008 MT against the previous year sales of 3160 MT.

The Company also produced a total of 77628 MT of Calcium Carbonate registering a growth of 13% against the previous year production of77585 MT. The sales were 80184 MT against the previous year sales of 7101OMT.

The Company has taken necessary steps to reduce operational costs such as reduction in power costs, higher yield etc, which would make the product more competitive. The customer has shown tremendous confidence in the product quality and service, which your company would continue to consider its top priority.

4. Outlook

The Company is optimistic about its growth prospects in the future. During the year, the Company explored exports markets for the products and achieved significant business. It has ambitious plans to capture more new markets to expand the business. Economic environment provides an opportunity to improve the business climate. Indian economy with its strong macro economic fundamentals, positive investment climate, encouraging corporate performance and continued institutional support by foreign institutional investor, is poised for a higher growth.

The outlook for Sorbitol and Calcium Carbonate industry is encouraging and dependent upon the growth of the consumer industry. Improvement in overall economic scenario and replacement of other costly products by Sorbitol and Calcium Carbonate holds the key for steep growth of Sorbitol and Calcium Carbonate industry. The growth in industrial output and increase in investment in core and infrastructure sector should improve the sentiments of Economy. The growth in other sectors would also follow which in turn would increase the prospects ofthe company. Together with the GDP growth, the Company expects a reasonably good demand growth from various quarters, which in turn would lift the company's future.

5. Financial and Operational Performance

The Sales and Other Income for the financial year were Rs. 2203.765 millions (Previous year Rs.2170.524 millions). The Net Profits after tax were Rs. 127.015 millions (Previous year Rs. 173.772 millions). The Depreciation for the year was Rs. 150.257 millions (Previous year Rs. 66.870 millions). The Cash accruals were higher at Rs. 265.064 millions (Previous year Rs 230.875 millions).

The earnings include an amount of 2.844 millions (Previous year Rs. 8.347 millions) as other Income, which comprised of agricultural income Rs. 2.620 millions, dividend income of Rs.0. 011 millions and Interest of Rs. 0.213 millions. The Company spent an amount of Rs. 44.121 millions on Repairs and Maintenance of Plant and Machinery, which were necessitated to maintain and upgrade the life of the equipments. The resource mobilization of the Company during the year has been from cash accruals, existing cash and cash equivalent, increase/ unutilized working capital limits from bank, and realization and sale of Investment etc. The Company has repaid institutional dues in time and without delay. The total deferred tax liability up to 31st March 2010 including for earlier years works out to Rs. 81.037 millions and the same has been adjusted against the General Reserves of the Company over the years. The Company declared a dividend @25%. An amount of Rs. 150.000 millions was transferred to General reserves.

Fixed Assets

· Land and Site Development

· Building

· Plant and Machinery

· Office Furniture and Equipments

· Vehicles

WEBSITE DETAILS:

Company Profile

The Company is engaged in manufacturing of ‘Sorbitol-70%’. Sorbitol, a starch derivative, sweet in taste, finds wide range application, the major uses in dentrifice, cosmetic, Pharma, Vitamin-C, food products etc. The plant was set-up in 1996 in the State of Gujarat in the parent company i.e. Gulshan Sugars and Chemicals Limited. Subject was incorporated in 2000, to take over the Sorbitol project from GSCL in terms of scheme of Arrangement/ demerger. The plant is equipped with International Quality Equipment and Technology having the largest capacity in India. The Plant is capable to produce Crystalline and Non–crystalline grade of Sorbitol which is a unique feature as compared to other domestic plants. The present installed capacity is 30000 Tones of Sorbitol. Subject has an accreditation as ISO 9001:2000 certification

Subject is a manufacturer of ‘Calcium Carbonate’ and specialty chemical ‘Sorbitol 70%’, with a turnover of more than Rs. 2000 millions , and provides employment to over 1200 people. It enjoys an esteemed customer profile including some of the most trusted names in the world like Colgate-Palmolive, Hindustan Unilever, Asian Paints, Wipro, Cipla, Ranbaxy etc.  It is also the largest exporter of Sorbitol from the country with a presence in 16 countries covering three continents of Asia, Africa & Australia

Subject has been recently recorded in Limca Book of Records, 2010, for pioneering in setting up the first on-site PCC plant in the country. It is an ISO 9001:2000 Company, with its product Sorbitol OU certified and has achieved many more certificates of excellence in various fields.

FOCUS AREAS FOR THE FUTURE

The company set up the first of its kind "On-site PCC (Precipitated calcium carbonate)" manufacturing plant in the country in May 2009 with a capacity of 10000 MTPA, having a unique environment friendly technology. With a growth potential of 5 lakh MT of on-site PCC requirement in the paper industry, GPL as a sole player, see's a great growth opportunity in setting up more such plants in the near future.

GPL is widening its product line of value added starch based products like MANNITOL which is a specialty polyol, currently being imported into the country, having a growth potential of 15-20% p.a. and Dextrose Monohydrate which is a specialty sugar having a huge domestic as well as export potential.

BACKGROUND

The company was incorporated in year 1981 as Gulshan Sugars and Chemicals Limited with primary business of manufacturing Calcium Carbonate both Precipitated Calcium Carbonate (PCC) and Activated Calcium Carbonate (ACC) with an initial capacity of 2100 MTPA at Muzaffarnagar, U.P. In line with the growth experienced over years, company has done regular expansions in Calcium Carbonate segment and raised its capacity to 1,70,000 MTPA.

Apart from undertaking continuous expansions at its parent location in U.P., the company set up three additional units in north and western part of India at the following locations:

Paonta Sahib, Himachal Pradesh

Bharuch, Gujarat

On-site PCC plant in the premises of Magnum papers at Sahibabad

In 1996 it diversified into manufacturing corn based specialty chemical, Sorbitol, with a capacity of 45000 MTPA. Sorbitol is a starch derivative, sweet in taste, with a wide range of applications, the major being dentrifice, cosmetic, Pharma, Vitamin-C, food products etc.

The company commissioned 10MW Co Gen power plants at its various locations. Further, it promoted environment-friendly technology and is compliant with various state and central pollution board norms.

In 2000, the Sorbitol business was demerged into a separate entity in the name of Gulshan Polyols Limited. Over the years, the management decided to reverse merge the two entities to derive cost benefits and improve the overall profitability. In effect from April 2007, Gulshan Sugar and Chemicals Limited (GSCL) merged with Gulshan Polyols Limited (GPL).

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.44.69
UK Pound	1	Rs.73.12
Euro	1	Rs.64.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.