MIRA INFORM REPORT

Report Date :

21.10.2011

IDENTIFICATION DETAILS

Name :	GHARDA CHEMICALS LIMITED
Registered Office :	48 Hill Road, Bandra (W), Mumbai – 400050, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.03.1967
Com. Reg. No.:	11-013688
Capital Investment / Paid-up Capital :	Rs.6.451 Millions
CIN No.: [Company Identification No.]	U24110MH1967PLC013688
TAN No.: [Tax Deduction & Collection Account No.]	MUMG00454G
PAN No.: [Permanent Account No.]	AAACG1255E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Seller of Pesticides, Intermediates, Weedicides, Formulations, Veterinary Drugs, Plant Nutrients and Polymers.
No. of Employees :	1500 (In Office 300 and In Factory 1200) Approximately

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums		Fairly Large

Maximum Credit Limit :	USD 24913000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and a reputed company having fine track. Financial positions of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Rodriques
Designation :	Accounts Department

LOCATIONS

Registered Office / Head Office :	48 Hill Road, Bandra (W), Mumbai – 400050, Maharashtra, India
Tel. No.:	91-22-33065600 (30 lines)
Fax No.:	91-22-26404224
E-Mail :	ghardaho@gharda.com polymer@gharda.com gclimd@giasbmol.vsnl.net.in michael@gharda.com ghardadom@gharda.com asnawal@gharda.com
Website :	http://www.gharda.com http://www.ghardapolymers.com
Location :	Owned
Group European Office :	Croydon, CR9 6AD, England
Tel. No.:	+44 -208-6554103
Fax No.:	+44-208-6554102
Group U.S Office :	660, Newtobn, Yardley Road, Suit 106, Newton, PA 18940, USA
Tel. No.:	+1 -215-9689474
Fax No.:	+1 -215-9689474
Factory 1 :	Dombivali Plant: B-27, Phase I, MIDC, Dombivli (East), District Thane – 421 203, Maharashtra
Tel. No.:	91-251-2440001 / 04 / 5690760 /5690761/5690762
Fax No.:	91-251-2472777 / 5690770
E-Mail :	ghardadom@Gharda.Com
Factory 2 :	Lote Plant D-1/2, MIDC, Lote Parshuram, Taluka – Khed, District – Ratnagiri, Maharashtra
Tel. No.:	91-2356-272252 / 254 /189 / 272018
Fax No.:	91-2356-272190
E-Mail :	ghardalote@Gharda.Com
Factory 3 :	Panoli Plant: Plot No. 3525 - 27 GIDC Industrial Estate, Panoli – 394 116, District – Bharuch, Gujarat
Tel. No.:	91-2646-272152 / 186 / 272575 – 78 / 272186
Fax No.:	91-2646-272141
E-Mail :	ghardapan@Gharda.Com
Factory 4 :	Ankleshwar Plant Post Box No. 90, Plot No. 805-806, GIDC Estate, Ankleshwar – 393 002, Gujarat
Tel. No.:	91-2646-222271/251472/250305
Fax No.:	91-2646-250116
E-Mail :	ghardaankl@Gharda.Com
Factory 5 :	Phase II Industrial Estate, Samba-184121, Jammu and Kashmir, India
Overseas Office :	· 115, Obtuse Hill, Brookfield, CT 06804, United States of America Tel. No.: + 1 203 740 1600 Fax No.: + 1 203 740 2501 E-Mail: ghardaus@gharda.com · 660 Newton Yardley Road, Suite 106, Newtown, PA 18940, USA Tel No: 215-9689474 Fax No: 215-9689574 Email: ghardaus@gharda.com · Crydon, CR9 6AD, England Tel No: 44 208 6554103 Fax No.: 44 208 6554102 Agrochemicals Holbrook House, 72, Lower Addiscombe Road, Croydon CR9 6AD, England, United Kingdom Tel. No.:+ 44 208 655 4103 Fax No.:+ 44 208 655 4102 E-Mail: ghardauk@gharda.com adam.leniewski@ghraduk.co.uk Polymers Palon International, P. O. Box 4080-2003, EB Haarlem, The Netherlands Tel. No.: 31 23 5401077 Fax No.: 31 23 5401247 E-Mail: palon@wxs.nl

DIRECTORS

AS ON 29.09.2010

Name :	Dr. Hormusji Keki Gharda
Designation :	Managing Director
Address :	48 Hill Road, Bandra (W), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	25.09.1929
Date of Appointment :	06.03.1967
Name :	Mrs. Keki Aban Gharda
Designation :	Director
Address :	48 Hill Road, Bandra (W), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	04.03.1992
Date of Appointment :	17.09.1986
Name :	Mrs. Almitra Hoshang Patel
Designation :	Director
Address :	50 Kothnur, Bagalpur Road, Bangalore- 560 077, Karnataka, India
Date of Birth/Age :	01.03.1936
Date of Appointment :	13.12.2007
Name :	Mr. Thakorbhai Dhananjay Desai
Designation :	Director
Date of Birth/Age :	23.08.1942
Date of Appointment :	13.08.2007
Name :	Mr. Alexander Koipuram Luke
Designation :	Additional Director
Address :	Salin, Chthoanoor, Kollan-391572, Kerla, India
Date of Birth/Age :	04.08.1948
Date of Appointment :	29.07.2009

KEY EXECUTIVES

Name :	Mr. Anil Shantilal Nawal
Designation :	Chief Financial Officer and Company Secretary
Address :	B-307, Raj Arcade Mahavir Nagar, Kandivali (west), Mumbai-400067, Maharashtra, India
Date of Birth/Age :	15.08.1965
Date of Appointment :	19.05.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Gharda Keki Hormsuji	17552
Dariuwalla E.B	105
Kavasmaneck R Jer	105
Gharda KJ Aban	2961
Kavasmaneck R Darus	7515
Patel H Aviva	435
B R G Hospital Tryst	9524
Sethna N Rusi	200
Saheba Chnadrakant	308
Kavasmanek Percy	2550
Kavasmanek Aban	1021
Gharda Keri	4048
Rebillo Colin	2544
Kavasmanek Percy	981
Bhanushali Ashok	105
Somaiya Mehul	160

Equity Shares Breakup (Percentage of Total Equity):

As on 29.09.2010

Category	Percentage
Bodies corporate	9.00
Directors or relative of directors	60.00
Other top fifty (50) shareholders	31.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Pesticides, Intermediates, Weedicides, Formulations, Veterinary Drugs, Plant Nutrients and Polymers.

Products :

Product Description

· Pesticides, Intermediates and Weedicides

· Insecticides

Item code	Product Description
380810.29	Cypermethrin Technical
380810.29	Chlorpyriphos
380810.22	Isoproturon Technical

Exports :

Products :

· Insecticides

· Herbicides

· Fine Chemicals

Countries :

· European Countries

· Middle East

· Asia Countries

· USA

· UK

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

L/C

Purchasing :

L/C

GENERAL INFORMATION

Customers :

· End Users

· Farmers

No. of Employees :

1500 (In Office 300 and In Factory 1200) Approximately

Bankers :

· Canara Bank

Address: Hill Road, Bandra West, Mumbai – 400 050, Maharashtra, India

· Canara Bank

Address: CSB, Dalamal Tower, Nariman point, CBI BOB, UCO and KVB Member Banks, Mumbai – 400 021, Maharashtra, India

· Canara Bank, Fort

· Bank of Baroda

· Central Bank of India

Address; Flora Fountain Branch, Mumbai – 400 023, Maharashtra, India

· Central Bank of India

Address: Mumbai Main Office, MG Road, Fort, Mumbai – 400 023, Maharashtra, India

· Societe Generale

Address: Maker chambers IV, Nariman point, Mumbai – 400 021, Maharashtra, India

· The ICICI Bank Limited

· State Bank of India

Address: State Bank Bhavan, Madame Cama Road, Nariman Point,

Mumbai-400021, Maharashtra, India

· Karur Vyasya Bank Limited

· HSBC Bank

Facilities :

SECURED LOAN	AS ON 31.03.2010 (Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
Working Capital Loans from Banks	166.868	1894.573
Interest accrued and due	0.000	3.198
TOTAL	166.868	1897.771

NOTE:

Cash Credit bill discounting and packing credit limits from banks are secured by a charge on a pari passu basis by

• First charge on stocks of raw materials, semi – finished goods, stores and spares, bills receivables by way of cash assistance under any scheme and claims by way of refund of customs/excise or other scheme of the government, bills, invoices, securities both present and future and
• Charge on factory plot, etc as factory plot nos. B – 22,23,24,27,28 and 29 at MIDC, Dombivali, Dist Thane, Plot D ½, MIDC, Lote Parshuram, Tal. Khed, Dist. Ratnagiri, Plot 3525, GIDC Panoli, Tal Ankleshwar, Dist. Bharuch – together with all buildings and structures and all plant and machinery located at these plots.

Unsecured Loans	31.03.2010 (Rs. In millions)	31.03.2009 (Rs. In Millions)
Fixed Deposits	131.919	95.630
Total	131.919	95.630

Notes:

Fixed deposits include loans from directors Rs.0.017 million (2009 : Rs. NIL)

Banking Relations :

Good

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

12, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India

Associates :

· Gujarat Insecticides Limited

[CIN No.: U24299GJ1980PLC003929]

Post Box No. 90, Plot No. 805-806, GIDC Estate, Ankleshwar - 393 002, Gujarat, India

· Gharda USA Inc, USA

· Gharda Australia Inc

· Gharda Australia Pty Limited, Australia

· Gharda Argentina Pty Limited, Argentina

· Gharda Investment Syndicate

· Gharda Insecticides Limited, Ankaleshwar

Subsidiaries :

· Gujarat Insecticides Limited, Gharda USA Inc.

(CIN No.: U24299GJ1980PLC003929)

· Gharda Australia Pty. Limited

· Gharda Generics Inc.

· Gharda Investment Syndicate

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity shares	Rs. 100/- each	Rs. 15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
64514	Equity shares	Rs. 100/- each	Rs. 6.451 millions

Of the above

62166 Equity Shares of Rs. 100 each fully paid are issued as bonus shares by capitalization of General Reserve and Securities Premium Account.

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		6.451	6.451	6.451
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6221.998	5532.827	4921.345
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6228.449	5539.278	4927.796
LOAN FUNDS
1] Secured Loans		166.868	1897.771	1795.842
2] Unsecured Loans		131.919	95.630	274.208
TOTAL BORROWING		298.787	1993.401	2070.050
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6527.236	7532.679	6997.846
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1638.675	1445.257	1433.029
Capital work-in-progress		210.500	504.246	636.243
INVESTMENT		175.832	95.434	93.191
DEFERREX TAX ASSETS		120.322	177.417	112.030
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2106.156	2815.651	2402.395
	Sundry Debtors	2790.987	2509.980	2237.879
	Cash & Bank Balances	316.171	207.260	373.630
	Other Current Assets	465.515	663.448	774.983
	Loans & Advances	522.476	543.197	459.629
Total Current Assets		6201.305	6739.536	6248.516
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1081.427	872.694	883.212
	Other Liabilities	539.384	399.912	452.859
	Provisions	198.587	156.605	239.092
Total Current Liabilities		1819.398	1429.211	1525.163
Net Current Assets		4381.907	5310.325	4723.353
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6527.236	7532.679	6997.846

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	8948.481	8432.709	7225.743
		Other Income	327.732	333.090	405.553
		TOTAL (A)	9276.213	8765.799	7631.296
Less	EXPENSES
		Cost of Materials	4874.050	4478.543	4546.888
		Excise	34.891	1.441	[78.174]
		Personnel Expenses	760.313	660.087	574.453
		Manufacturing and Other Expenses	2011.449	1994.872	1674.521
		Expenses Capitalised	0.000	(2.708)	(7.582)
		TOTAL (B)	7680.703	7132.235	6710.106
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1595.510	1633.564	921.190
Less	FINANCIAL EXPENSES (D)		110.768	227.110	230.372
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1484.742	1406.454	690.818
Less/ Add	DEPRECIATION/ AMORTISATION (F)		352.984	433.392	462.006
	PROFIT BEFORE TAX (E-F) (G)		1131.758	973.062	228.812
Less	TAX (H)		367.359	323.844	131.244
	PROFIT AFTER TAX (G-H) (I)		764.399	649.218	97.568
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2646.786	2165.151	2108.476
Less	APPROPRIATIONS
		Transfer to General Reserve	76.440	129.844	10.700
		Dividend	64.514	32.257	25.806
		Tax on Dividend	10.715	5.482	4.387
	BALANCE CARRIED TO THE B/S		3259.516	2646.786	2165.151
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4324.682	3999.122	3869.199
	TOTAL EARNINGS		4324.682	3999.122	3869.199
	IMPORTS
		Raw Materials	918.772	1090.734	974.376
		Stores & Spares	0.160	0.133	12.754
		Capital Goods	10.540	11.111	0.110
	TOTAL IMPORTS		929.472	1101.978	987.240
	Earnings Per Share (Rs.)		11.849	10.063	1.512

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.24	7.41	1.28
Net Profit Margin (PBT/Sales)	(%)	12.64	11.54	3.17
Return on Total Assets (PBT/Total Assets}	(%)	14.43	10.85	2.68
Return on Investment (ROI) (PBT/Networth)		0.18	0.18	0.01
Debt Equity Ratio (Total Liability/Networth)		0.34	0.62	0.73
Current Ratio (Current Asset/Current Liability)		3.40	4.72	4.10

LOCAL AGENCY FURTHER INFORMATION

NOTE:

Registered office of the company has been shifted from 5/6, Jer Mansion, W P Varde Road, Off Turner Road, Bandra (West), Mumbai-400050, Maharashtra, India to the present address w.e.f. 11.10.2010

History

The highly prolific Dombivli Plant was set up in 1971. The Lote Parshuram plant was commissioned in 1989. A plant manufacturing chloropyrifos was commissioned in September 1996.

Subject is the first company world wide to go into the large-scale production of anilofos, the rice weedicide. New R and D and Quality Control laboratories were commissioned in August 1996.

In late 1999, the company secured ISO 9001 certification for the designing, manufacturing and marketing of high performance speciality engineering alloys and composites and related monomers and chemicals.

operations:-

The Total sales turnover for the year ended 31.03.2010 was Rs.8950.000 millions reflecting an increase of 6% as compared to previous year turnover of Rs.8430.000 millions. The Profit After tax has increased to Rs.764.400 millions from Rs.649.200 millions of the previous year.

The company experienced pressure on selling price due to global competition mainly from China. However, higher volumes, control over costs and reduction in interest cost due to better management of working capital resulted into higher profits as compared to previous year.

The company’s manufacturing plants for all major products operated at optimum capacities during the year.

current year working:

During the current year the company has achieved sales turnover of Rs. 3250.000 millions for the period April to July 2010 as compared Rs.2560.000 millions for the period April to July 2009. The adequacy monsoon in India so far, would help better sales in domestic market. However, despite better volumes, export realization is likely to be under pressure due to renewed threat from Chinese manufacturers especially in view of season failure in China.

FORM 8

This form is for	Creation of charge
Corporate identity number of the company	U24110MH1967PLC013688
Name of the company	GHARDA CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	5/6, “Jer Mansion”, 10, W. P. Warde Road, Off Turner Road, Bandra (West), Mumbai – 400 052, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	State Bank of India Address: State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai-400021, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry and Declaration
Date of instrument Creating the charge	21.05.2008
Amount secured by the charge	Rs. 910.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Agreement Terms of Repayment As per Agreement Margin As per Agreement Extent and Operation of the charge The above is to secure SBI corporate loan of US $ 21 Million equivalent to Rs. 910.000 Millions. The charge in favour of Canara Bank, CBI, BOB, UCO and Karur Bank for their working capital facilities shall rank second and subservient to the mortgage created in favour of SBI for its corporate loan
Short particulars of the property charged	Joint Mortgage by Deposit of Title Deed with Canara Bank, Canara Bank Acting for itself and as agent of CBI, BOB, UCO, KVB and SBI in Respect of Immovable Properties i.e. Plot No. B22, B23, B27, B28, B29 Dombivali Industrial Area Kalyan, District Thane and Plot No. D/1/2, Lote Parshuram Tal. Khed District Ratnagiri and Plot No. 3525 Panoli Industrial Area GIDC Ankleshwar Bharuch More Patricularly described in part A, B and C1 of Second Schedule of More.

Name of the company	GHARDA CHEMICALS LIMITED
Presented By	GHARDA CHEMICALS LIMITED
1) Date and description of instrument creating the change	Deed of Hypothecation dated September, 2000, executed by Gharda Chemicals Limited (therein and hereinafter referred to as the Companf) in favour of ICICI LIMITED. (therein and hereinafter referred to as ICICl) and a copy of which is enclosed.
2) Amount secured by the charge/amount owing on the securities of charge	Term loan aggregating to Rs.330.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the movable properties of the company including its Moveable plant and machinery spares, tools and accessories and other movables, both present and future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time during the continuance of the security of these presents be brought into or be in or stored or be in or about the company’s factories, premises and godowns Dombivil, District Thane, Lote District Ratnagiri, and Panoli, in the state of Gujarat or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the company and either by way of substitution or addition.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of ICICI having agreed to lend and advance to the Company the Loan, agreement and dedaration by the company, inter alia, as follows : - Convent by the Company to repay the Loan and pay interest and all other moneys in the manner set out in the Loan Agreement between the Company and ICICI and to comply with the terms and conditions of the said Loan Agreement The said goods were thereby hypothecated, inter alia, to ICICI, as and by way of First Charge as security for and be charged with the repayment of the Loan with all interest, Front end fees, liquidated damages, costs, charges and other expenses payable by the Company to ICICI in respect thereof Provided that the charge of ICICI on the said Goods will be subject to the charge or charges created andlor to be created by the Company in favour of its bankers on its stocks of raw materials, finished goods, consumables stores and book debts and such other movables as may be specifically permitted by the lender in writing to secure borrowings for working capital requirements. The said goods were thereby hypothecated, inter alia, to ICICI, as and by way of First Charge as security for and be charged with the repayment of the Loan with all interest, Front end fees, liquidated damages, costs, charges and other expenses payable by the Company to ICICI in respect thereof Provided that the charge of ICICI on the said Goods will be subject to the charge or charges created andlor to be created by the Company in favour of its bankers on its stocks of raw materials, finished goods, consumables stores and book debts and such other movables as may be specifically permitted by the lender in writing to secure borrowings for working capital requirements: The said goods were thereby hypothecated, inter alia, to ICICI, as and by way of First Charge as security for and be charged with the repayment of the Loan with all interest, Front end fees, liquidated damages, costs, charges and other expenses payable by the Company to ICICI in respect thereof Provided that the charge of ICICI on the said Goods will be subject to the charge or charges created andlor to be created by the Company in favour of its bankers on its stocks of raw materials, finished goods, consumables stores and book debts and such other movables as may be specifically permitted by the lender in writing to secure borrowings for working capital requirements: The Company to keep the said goods in marketable and good condition and also insured as provided therein. Power of entry, power to take charge and! or possession of, seize, recover, receive, appoint receivers of and remove and I or sell by public auction or private contract, despatch for realisation or otherwise dispose of or deal with all or any part of the said goods etc. as provided therein.
5) Name and Address and description of the person entitled to the charge.	· ICICI Limited, ICICI Towers, Bandra Kurla Complex, Bandra (w), Mumbai - 400051
6) Date and brief description of instrument modifying the charge	27109/2000 : Joint mortgage by deposit of Title deeds Registered vide Sr.No.358 dt.19/l 012000
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Past modification: Deed of modification and confirmation dt 2710112003 Amendatory Agreement dt. 27101/2003 (Copies enclosed) At the request of the Borrower, the Lender has agreed to convert the amount into Equivalent Fo Currency Loan.

fixed assets:-

· Leasehold Land

· Freehold Land and Property

· Buildings

· Plant and Machinery

· Computers

· Vehicles

· Furniture and Fixtures

· Office Equipments

Trade references:-

· Reliance Industries Limited, Mumbai

· Indian Oil, Mumbai

· Anup Engineering

· Durametalic Sanmar

· Fisher Rosemount (India) Limited

· H. K. Industries

· IAEC Industries Madras Limited

· Horizon Polymers Engineers Limited

· Yash Rasayan

WEBSITE DETAILS

PROFILE

Subject established in 1967, is a research-based company with four manufacturing units. The company has won several national awards for technical innovation in the chemical industry and has many firsts in the field of dyestuffs, pesticides, veterinary drugs and polymers.

Innovation through a vibrant R&D has marked the rise of Gharda Chemicals Limited (GCL) from a small unit in 1964 to one of the most successful and reputed companies in the Agrochemical Industry. A strong and vibrant R&D program and expertise in process development has enabled the company to capitalize on superior technology. This has led to the production of vital import-substitute products and cost effective agrochemicals on a large scale and consequently to a strong, competitive national and international presence. And all this has been made possible by the vision and unswerving dedication and commitment of Dr. Keki Gharda, Founder - Chairman & Managing Director, Gharda Chemicals Limited.

Elemental Facts about them:

Among top ranking chemical companies in India, with world class products and annual sales of Rs. 8948 million (2009-10) including exports worth Rs. 4325 million.

Commissioned world class plant manufacturing Chlorpyrifos of 99% plus purity

Both Dombivli & Lote plants have received ISO 9001-2000, ISO 14001-2004 & OHSAS 18001-1999 Certification

Only Indian company to receive U.S. Registration (EPA Approval) for the sale of Chlorpyrifos (Insecticide) and Dicamba (Herbicide) in the U.S.A.

Awarded the prestigious "Chemexcil Trishul Award" for outstanding exports among large-scale chemical manufacturers for 1995 - 1996

MILESTONE

1985	Distinguished Alumnus Award of the University Department of Chemical Technology
1990	Shri Om Prakash Bhasin Foundation Award for Science & Technology
1993	Outstanding Chemical Engineer by the Indian Institute of Chemical Engineers.
1994	Distinguished Alumnus Award of The University Department of Chemical Technology.
Sept.1997	Special awards from The Indian Institute of Chemical Engineers for exceptional contribution to the Chemical Engineering profession, Chemical Industry and Society at large.
Dec.1997	Life Time Achievement Award for immeasurable contribution to research and Industry from The Indian Analytical Instruments Association
Jan.2000	Dr.Gharda was selected as one of the four “Contributors to Indian Chemical Industry in this millennium”. He is now one of the two survivors.
Nov.2000	Chemical Industry Stalwart Award presented by Chemtech Foundation in recognition of outstanding contribution rendered to the Indian process Industry.
Nov.2003	In recognition of Dr.Gharda’s contribution to the Indian Chemical Industry in particular and the Society in general, the Institute of Science (Mumbai) alumini Association felicited Dr.Gharda and conferred on him the Vigyan Sanstha Ratna Award 2003.
June.2004	Dr.Gharda received the “Chemical Pioneer Award” from The American Institute of Chemists, Philadelphia, USA, on June 18th 2004
Oct.2007	CHEMEXCIL– Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council. Mumbai – Life Time Achievement Award - for exemplary contribution to Indian Chemical & Agro Chemicals Industry.
Dec.2007	Dr.Gharda received “Dr. Bujor P Godrej Life Time Award for 2007” & the Diamond Jubilee Award of the Indian Institute of Chemical Engineers, Kolkata.
April 2008	Dr.Gharda was presented a Gold Medal by the Society of Dyers and Colourists, United Kingdom “for outstanding contributions to the dyestuff Industry in India”.

The Lote Plant

The Lote Parshuram plant in the Ratnagiri district, located 320 kms south of Mumbai, was commissioned in 1989. Located on a 22-acre plot, the Lote plant manufactures the rice-weedicide, Anilofos, the pesticide intermediate Cypermethric Acid Chloride (CMAC), and several other products like Rafoxanide, Mepiquat Chloride, Temephos, etc. A plant manufacturing Chloropyrifos was commissioned in September 1996. Lote also has plant facilities for scale up, kinetic study and manuacture of new products for market trials.

The Lote unit is growing fast and has had a 100% growth in turnover since 1994. Subject is the first company world wide to go into the large-scale production of Anilofos, the rice weedicide. New R and D and Quality Control laboratories were commissioned in August 1996. A large number of scientists are involved in a parallel research program for the discovery of the next generation of Gharda's fine chemicals, both polymers and agricultural.

The Lote facility is the first plant of Subject to achieve the coveted ISO 9001 certification as a manufacturing site for fine chemicals.

The Panoli Plant

From producing high quality agrochemicals in three existing manufacturing facilities, Subject has now diversified into polymers at a new site- Panoli.

The polymer plant of Subject, located at Panoli, Gujarat, went on stream in March 1997. Built along international standards on a huge area of 75 acres, the plant manufactures specialty polymers.

Two core technologies for the manufacture of Polymers- solution and emulsion polymerisation- have been developed by Subject at this plant to enable it to produce a series of basic polymer resins. Subject has built a world class plant at Panoli to manufacture Polyether Sulfone (PES) under the trade name GAFONE^TM. The new facility will also produce Polyether ether Ketone (PEEK), under the trade name GATONE and Polysulfone under the trade name GAFONE-S.

Gujarat Insecticides Limited

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

Since inception, GIL has recorded a steady growth in sales and profits with turnover touching Rs. 800 million in 1997-98 including exports of Rs.200 million. In the process, the company has established a strong presence in the domestic as well as international market.

GIL is an ISO 9001 certified Company with impressive manufacturing facilities at Ankleshwar where it employs 500 people. Here, sophisticated technical grade pesticides like Quinalphos, Carbendazim, Cypermethrin, Fenvalerate and an intermediate Metaphenoxy Benzaldehyde are manufactured. An excellent capacity utilization for all the products has led to major expansion plans. The company's R and D programme is helping to upgrade several of its manufacturing processes using modern techniques and analytical equipment.

Over the past 17 years, GIL has grown from strength to strength. Today, together with GCL, the group is the largest agrochemical manufacturer and exporter in India.

GIL has just been awarded the "Chemexcil Certificate of Merit" for excellent exports during 1995 - 96.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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.49.71
UK Pound	1	Rs.78.08
Euro	1	Rs.68.05

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	Yes
--AFFILIATION	YES/NO	Yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		66

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

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.