MIRA INFORM REPORT

Report Date :

16.09.2011

IDENTIFICATION DETAILS

Name :	GRAVITA INDIA LIMITED
Registered Office :	‘Saurabh’, Harsulia Mod, P. O. Harsulia, Diggi-Malpura Road, Tehsil Phagi – 303904, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.08.1992
Com. Reg. No.:	006870
Paid-up Capital :	Rs. 136.200 Millions
CIN No.: [Company Identification No.]	L29308RJ1992PLC006870
TAN No.: [Tax Deduction & Collection Account No.]	JPRG00562C
PAN No.: [Permanent Account No.]	AAACG6753F
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of various type of industrial welding powder, gum adhesives and chemicals
No. of Employees :	260 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to usually correct 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 – 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 :	‘Saurabh’, Harsulia Mod, P. O. Harsulia, Diggi-Malpura Road, Tehsil Phagi – 303904, Rajasthan, India
Tel. No.:	91-141-2621046
Fax No.:	91-141-2621491
E-Mail :	companysecretary@gravitaindia.com info@gravitaindia.com works@gravitaindia.com
Website :	www.gravitaindia.com
Corporate Office :	402, Rajputana Tower, A – 27 B, Shanti Path Tilak Nagar, Jaipur, Rajasthan, India
Tel. No.:	91-141-2623266/2622697
Fax No.:	91-414-2621491

DIRECTORS

Name :	Mr. Rajat Agarwal
Designation :	Managing Director
Name :	Dr. Mahavir Prasad Agarwal
Designation :	Chairman and Whole Time Director
Date of Birth/Age :	01.03.1934
Qualification :	M.B.B.S
Date of Appointment :	27.03.2007
Other Directorship :	· Gravita Exim Limited · Saurabh Farms Limited · Gravita Energy Limited
Name :	Mr. Rajeev Surana
Designation :	Whole Time Director
Name :	Mr. Dinesh Kumar Govil
Designation :	Director
Name :	Mr. Yogesh Mohan Kharbanda
Designation :	Director
Name :	Mr. Arun Kumar Gupta
Designation :	Director
Date of Birth/Age :	30.06.1944
Qualification :	Engineering Graduate
Date of Appointment :	11.08.2009

KEY EXECUTIVES

Name :	Ms. Leena Jain
Designation :	Company Secretary
Name :	Mahendra Chandra Mehta
Designation :	President
Name :	Mr. Vijender Singh Tanwar
Designation :	Advisor
Name :	R.G. Choudhary
Designation :	Vice President (Operations)
Name :	Mr. Navin Prakash Sharma
Designation :	Vice President (Sales and Marketing)
Name :	Mr. Gopal Agarwal
Designation :	Vice President (Technical)
Name :	Mr. Rakesh Kumar Jain
Designation :	Vice President (Projects)
Name :	Mr. Sandeep Choudhary
Designation :	Vice President (Procurement)

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	10,014,000	73.52
Sub Total	10,014,000	73.52
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10,014,000	73.52
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	8,050	0.06
Foreign Institutional Investors	553,329	4.06
Sub Total	561,379	4.12
(2) Non-Institutions
Bodies Corporate	2,253,352	16.54
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	352,261	2.59
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	354,306	2.60
Any Others (Specify)	84,702	0.62
Non Resident Indians	2,702	0.02
Clearing Members	82,000	0.60
Sub Total	3,044,621	22.35
Total Public shareholding (B)	3,606,000	26.48
Total (A)+(B)	13,620,000	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)	13,620,000	-

BUSINESS DETAILS

Line of Business :

Manufacturer of various type of industrial welding powder, gum adhesives and chemicals

Products :

Item Code No.	Product Description
78011000	Refined lead ingots
78019100	Lead alloy
78019990	Lead ingot (unrefined)
78019990	Remelted lead ingots/block

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Unit	Installed Capacity
Refined Lead/Lead Alloy	MT	12600
Unrefined Lead Ingots	MT	6000
Red Lead	MT	1800
Grey Oxide	MT	1800
Litharge	MT	1800

GENERAL INFORMATION

No. of Employees :

260 (approximately)

Bankers :

· Punjab National Bank

· Axis Bank Limited

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Term Loan from Banks
1) Axis Bank Limited (Secured against Hypothecation of Vehicles)	0.801	1.756
2) Punjab and Sind Bank (Secured against Hypothecation of Vehicles)	1.160	1.612
3) ICICI Bank (Secured against Hypothecation of Vehicles	2.120	0.000
Working Capital Loan From Banks
1) Punjab National bank (Against Hypothecation of Stock and Book Debts and Equitable mortgage of factory land, Building and Flats)
(i) C.C. Limit	3.657	109.002
(ii) Packing Credit Limit	49.252	15.338
(iii) FOBP Limit	20.959	10.769
(iv) Outward Bill Discount	64.462	12.011
(v) Buyers Credit	121.864	46.559
Total	264.275	197.047

Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Loans from Banks/Financial Institutions
ABN Amro Bank	0.000	0.644
Total	0.000	0.644

Securities

For Term Loan from Banks:

Term loan from Axis Bank, Punjab and Sind Bank and ICICI Bank are secured by way of hypothecation of vehicle financed by them.

For Working Capital Loan from Banks:

Working Capital Loan are secured by way of hypothecations (Floating Charge) on stock and Book Debts and Equitable mortgage of factory land, buildings and flats

Banking Relations :	--
Auditors :
Name :	Rajvanshi and Associates Chartered Accountants
Address :	H – 15, Chitranjan Marg, C – Scheme, Jaipur 302 001, Rajasthan, India
Name :	Kalani and Company Chartered Accountant
Address :	Shankar Ratan Chambers, S-23A, Mangal Marg, Bapu Nagar, Jaipur – 302015, Rajasthan, India
Subsidiaries :	· Gravita Exim Limited · Gravita Ghana Limited · Gravita Mozambique LDA · Gravita Senegal S.A.U · Gravita Georgia Limited · Gravita Energy Limited · Gravita Infra Private Limited · Floret Tradelink Limited · Gravita Technomech LLP. · Gravita Technomech · K.M Udyog · Penta Exim Limited
Associates :	· Navam Lanka Limited · Gravita Honduras SA · Pearl Landcon Private Limited
Enterprises having same key management personnel :	· Gravita Impex Private Limited · Saurabh Farms Limited · Gravita Honduras S.A. · Pearl Landcon Private Limited · Navam Lanka Limited · Shah Buildcon Private Limited · Jalousies India Private Limited · Surana Professional Services Private Limited · Gravita Exim Limited · Penta Exim Limited · Gravita Energy Limited · Gravita Infra Private Limited · Floret Tradelink Limited · Gravita Technomech LLP · Gravita Technomech · K.M Udyog · Gravita Georgia Limited · Gravita Ghana Limited · R.Surana and Company · Surana Associates

CAPITAL STRUCTURE

As On 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13620000	Equity Shares	Rs. 10/- each	Rs. 136.200 Millions

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		136.200	100.200	25.327
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		493.005	71.365	47.111
4] (Accumulated Losses)		0.000	00.000	0.000
NETWORTH		629.205	171.565	72.438
LOAN FUNDS
1] Secured Loans		264.275	197.047	15.195
2] Unsecured Loans		0.000	0.644	7.522
TOTAL BORROWING		264.275	197.691	22.717
DEFERRED TAX LIABILITIES		6.080	5.126	4.563
TOTAL		899.560	374.382	99.718
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		62.599	44.912	35.054
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		364.460	61.887	35.690
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	164.172	123.957	55.460
	Sundry Debtors	314.752	90.527	35.437
	Cash & Bank Balances	27.225	10.025	16.906
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	113.728	87.285	22.795
Total Current Assets		619.877	311.794	130.598
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	55.954	30.673	82.561
	Other Current Liabilities	13.720	11.389	10.205
	Provisions	77.702	6.167	8.858
Total Current Liabilities		147.376	48.229	101.624
Net Current Assets		472.501	263.565	28.974
MISCELLANEOUS EXPENSES		0.000	4.018	0.000
TOTAL		899.560	374.382	99.718

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1953.819	1051.745	591.748
		Other Income	41.854	14.491	3.760
		TOTAL (A)	1995.673	1066.236	595.508
Less	EXPENSES
		Material cost	1670.984	952.849	503.933
		Consumable consumed	27.896	15.486	7.264
		Factory overheads and manufacturing expenses	17.885	8.919	5.706
		Administrative expenses	34.509	14.114	8.953
		Employee costs	32.442	16.190	13.090
		Selling and distribution expenses	26.310	12.394	6.814
		Increase/Decrease in stock	21.918	(50.482)	0.303
		TOTAL (B)	1831.944	969.470	546.063
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		163.729	96.766	49.445
Less	FINANCIAL EXPENSES (D)		21.308	8.907	11.088
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		142.421	87.859	38.357
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.901	3.019	(3.975)
	PROFIT BEFORE TAX (E-F) (G)		138.520	84.840	42.332
Less	TAX (I)		41.198	27.186	15.473
	PROFIT AFTER TAX (G-I) (J)		97.322	57.654	26.859
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		69.995	45.741	18.910
Less	Prior Period Expenses		0.000	0.000	0.028
Less	APPROPRIATIONS
		Transfer to General Reserve	9.732	33.400	0.000
		Proposed Dividend	54.480	0.000	0.000
		Dividend Distribution Tax	9.048	0.000	0.000
	BALANCE CARRIED TO THE B/S		94.057	69.995	45.741
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	751.129	439.6226	316.456
	TOTAL EARNINGS		751.129	439.6226	316.456
	IMPORTS
		Raw Materials	750.540	296.020	21.341
	TOTAL IMPORTS		750.540	296.020	21.341
	Earnings Per Share (Rs.)		8.54	11.78	10.60

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.88	5.41	4.51
Net Profit Margin (PBT/Sales)	(%)	7.09	8.07	7.15
Return on Total Assets (PBT/Total Assets}	(%)	20.29	23.78	25.55
Return on Investment (ROI) (PBT/Networth)		0.22	0.49	0.58
Debt Equity Ratio (Total Liability/Networth)		0.65	1.43	1.72
Current Ratio (Current Asset/Current Liability)		4.21	6.46	1.29

LOCAL AGENCY FURTHER INFORMATION

State of Company’s Affairs

In the FY 2010-11, the Company has achieved consolidated annual turnover (Net of Excise Duty) of Rs. 2536.800 Millions as against Rs. 1587.600 Millions during previous financial year thereby achieving a growth rate of 59.79%. The Company’s consolidated profit after tax stood at Rs. 147.500 Millions.

This year Company has brought IPO of 36,00,000 Equity shares of Rs. 10/- each at a premium of Rs. 115/- per share. As a result our re-stated EPS before extraordinary item is Rs. 12.95 as against Rs. 16.75 in the corresponding period in the previous year.

Public Issue

During the year the Company turned into a public listed entity with an Initial Public Offering (‘IPO’ or ‘Issue’) of its equity shares in November 2010. The shares were listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) on 16.11.2010. The IPO was floated for 36,00,000 Equity Shares of Rs. 10/- each at price of Rs. 125/- (Rs. 115/- premium) per share aggregating to Rs. 4500.000 Millions. The Issue received a good response from all sections of investors and was oversubscribed by 42.24 times. The Issue was through 100% book building process and the price band for the Issue was Rs. 120 to Rs. 125 per share. The Issue was fully subscribed at the higher end of the band i.e. Rs. 125 per share. The total proceeds received by the Company amounted to Rs. 4500.000 Million.

MANAGEMENT DISCUSSION AND ANALYSIS:

Economic Overview

India’s manufacturing sector grew rapidly in 2010-11. The CII ASCON survey conducted by the Confederation of Indian Industry concluded that most sectors, out of the 121 sectors covered in the survey, showed excellent growth of over 20%.

Industrial sector growth was buoyant during the first two quarters (April- June, July-September) of the current financial year. The manufacturing sector, particularly, showed remarkable robustness, growing at rates of 12.6% and 9.9% during these two quarters.

Thereafter, industrial growth began to moderate. This compares with global trends, as global manufacturing continued to rebound post crisis till the first half of 2010, thereafter moderating. India’s post recovery industrial output growth was largely driven by a few sectors such as the automotive sector, along with cotton textile revival, leather, food and metal products. The impact of favourable monsoons on the domestic demand- driven industrial sector was not widespread.

Industry structure and development

Lead has been extracted and used since 4,000 BC. It is the fifth-most widely used metal after iron/steel, aluminium, copper and zinc, and is among the most recycled non-ferrous metals. The main input for Lead recycling comes from Lead acid battery scrap, which is a hazardous material.

The global demand for Lead is over 8.5 million tonnes. India’s total annual Lead demand is around 6,00,000 tonnes. Lead demand in India is growing at a 12% rate annually, owing to rapid infrastructure growth, as against the global average of 6%. India lacks Lead ore reserves, and necessitates large scale imports and secondary sources such as recycling.

In India, the only primary Lead smelter is Hindustan Zinc of the Vedanta Group, which contributes around 65,000 tonnes of the total supply in India. Secondary smelters contribute around 3,30,000 tonnes of Lead supply, of which around 1,70,000 tonnes is contributed by the unorganised sector players and 1,60,000 tonnes by organised sector players annually. The balance is met by imports.

Around 71% of the world’s total Lead production is used in the battery segment, 12% in pigments/chemicals, 7% in sheets/extrusions, 6% in ammunition and 4% in other miscellaneous segments.

During Q4, the average Lead LME price per tonne increased to US$ 2,605, compared with US$ 2,219 in the corresponding prior period. For FY 2011, the average Lead LME price per tonne increased to US$ 2,244, compared with US$ 1,990 in the corresponding prior period. The industry is expected bound to gain from the 13.75% rise in prices to US$ 2,351 per tonne on the London Metal Exchange in the past one year.

UNAUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30.06.2011

Rs. In Millions

S.No.	Particulars	Quarter ended Unaudited (30.6.2011)
1	(a) Net Sales/ Income from Operations (Net of Excise Duty)	514.160
	(b) Other Operating Income	0.042
	Total	514.202
2	Expenditure
a	(Increase)/Decrease in Stock in Trade	(36.705)
b	Consumption of Raw Material	211.561
c.	Purchase of Traded Goods	289.371
d	Employee Cost	12.652
e	Depreciation	1.148
f	Other Expenditure	6.858
g	Total (any item exceeding 10% of the Total Expenditure	484.885
	to be shown separately)
3	Profit From operations before Other Income, Interest and Exceptional Items (1-2)	29.317
4	Other Income	5.546
5	Profit before interest and exceptional items (3+4)	34.863
6	Interest	4.705
7	Profit after Interest but before exceptional items (5-6)	30.159
8	Exceptional Items	0.280
9	Profit (+)/ Loss(-) from Ordinary Activities before Tax (7+8)	30.439
10	Tax Expense	8.655
11	Net Profit (+)/ Loss(-) from Ordinary Activities afterTax (9-10)	21.783
12	Extraordinary Item (Net of Tax Expense Rs. Nil)	-
13	Net Profit (+)/ Loss(-) for the period (11-12)	21.783
14	Paid-up Equity Share Capital (Face Value ` 10/- per share)	13620000.000
15	Reserves excluding Revaluation Reserves as per Balance Sheet	514.789
16	Earnings Per Share (EPS) --
a)	Basic & Diluted EPS before Extraordinary Items for the period	1.60
b)	Basic & Diluted/ Restated EPS after Extraordinary Items for the period	1.60
17	Public Shareholding -No. of Shares	3606000
	-Percentage of Shareholding	26.48
18	Promoters and Promoter Group Shareholding
a)	Pledged/Encumbered
	-Number of Shares	-
	-Percentage of Shares (as a % of the total shareholding of Promoter and Promoter Group)	-
	-Percentage of Shares (as a % of the total share capital of the Company)	-
b)	Non-encumbered
	-Number of Shares	10014000
	-Percentage of Shares (as a % of the total shareholding of Promoter and P t G )	100.00
	-Percentage of Shares (as a % of the total share capital of the Company)	73.52

Notes:

1. The above results were reviewed by the Audit Committee and approved by Board of Directors at their respective meetings held on 10.08.2011 and the same have also been limited reviewed by Statutory Auditors of the Company.

2. This quarter being the first quarter of the financial year 2011-12, the year to date figures for the period ended 30.06.2011 and 30.06.2010, being same as of the quarterly figures, have not been given separately.

3. During the quarter under review the Company entered into partnership in M/s Metal Inc, Kathua with 75% stake in profit/loss sharing ration of the firm.

4. The details of the funds raised through Initial Public Offering (IPO) and utilisation of said funds are as follows:

Particulars	Rs. (in millions)
Funds received through IPO	450.000
Total funds utilised upto 30th June 2011	186.000
Temporary deployment of the unutilised amount is as follows: Investment in units of Mutual Funds	264.000

5. Figures for the previous year mentioned above have been re-grouped/ re-arranged to make them comparable wherever necessary.

6. During the quarter under review the company received 23 complaints from investors and all of them were resolved and no complaints were pending at the end of last quarter.

7. Exceptional Items includes profit on sale of subsidiary Floret Tradelink Limited

Fixed Assets:

· Free hold land

· Building

· Plant and machinery

· Electric equipments

· Computer and accessories

· Furniture and fixtures

· Vehicles

BUSINESS DESCRIPTION

Subject is an India-based company. The Company is engaged in the business of manufacturing of lead metal by recycling and smelting process, and other lead products. It is engaged in producing lead ingots. GIL’s subsidiary, Gravita Exim Limited, is engaged in providing turnkey solutions and consultancy services on engineering and design for the secondary lead companies. It has a manufacturing set up at Jaipur. GIL’s products include pure/ refined lead, lead ingots, lead alloys, grey oxide, red lead and litharge. Its products are used in industries, such as battery, glass, ceramic, pharmaceutical, paint, electronic. As of 30.06.2010, it had installed capacity of 6,000 metric tons per annum of lead, 12,600 metric tons per annum of lead alloy, 1,800 metric tons per annum of grey oxide, red lead and litharge. In April 2011, the Company together with its subsidiary Company, Gravita Exim Limited acquired 60% in M/s K. M. Udyog. For the six months ended 30.06.2010, Gravita India limited's revenues totaled Rs579.1M. Net income totaled Rs51.3M. The company reflects corresponding previous year financials are not reported. Gravita India Limited's are the flagship company of the Gravita group which was established in the year 1992 and has manufacturing set up at Jaipur. We are engaged in the business of manufacturing of lead metal by recycling.

MORE BUSINESS DESCRIPTION:

Lead Metal Recycling Group, Lead Metal Recycling Plant, Battery Recycling, Lead Ore Smelting, Lead Manufacturing, Used Battery Recycling, Lead Battery Recycling, Waste Batteries. Exports to many Asian countries

AS PER WEBSITE DETAILS

PROFILE:

The group of companies is owned and managed by a forward-looking team of professionals, with a combined experience of more than 530 years. They are committed to providing low cost Lead and Lead Products with highest level of quality assurance and special focus on delivering value.

All their business processes are targeted at maintaining high levels of Product Quality and cost competitiveness. They believe in versatile services and ethical business practices by preservation and protection of their natural resources. Their operations conform to ISO-9001 and ISO-14000 guidelines.

They are based at Jaipur, the state capital of Rajasthan, at a distance of 280 km from Delhi, the capital of India. Jaipur is well connected by rail, road and air links.

PRESS RELEASE:

Accord Fintech (India)

02.08.2011

India, August 02 -- Gravita India Limited has submitted to the Exchange a copy of Minutes of the Annual General Meeting of the Company held on July 27, 2011. Published by HT Syndication with permission from Accord Fintech.

Accord Fintech (India)

29.07.2011

India, July 29 -- Gravita India Limited has submitted to BSE a copy of the Press Release about Annual General Meeting of the Company held on 27.07.2011. Published by HT Syndication with permission from ACCORD FINTECH BSE.

GRAVITA INDIA ACQUIRES 80% STAKE IN METAL INC

Asia Pulse Businesswire

14.07.2011

MUMBAI, July 14 Asia Pulse - Lead manufacturer company Gravita India (BSE:533282) on Wednesday announced to acquire 80 per cent stake in Jammu and Kashmir based Metal Inc, Kathua.

Gravity is also under process to acquire the balance 20 per cent stake in Metal Inc, Kathua, Gravity India said in a statement.

The company said the latest addition hall further increase the Lead smelting and refining production capacity of company by 3,600 tonnes per annum to 46,200 tonnes per annum.

Gravity shall benefit fro this acquisition in the Tax heaven zone and expects addition of approximately Rs 40 to 45 crores and Rs 3 crore(US$673,860), respectively to the top and bottom line of the during the current fiscal year, the statement said.

Gravita India acquires 80% stake in Metal, Inc

Accord Fintech (India)

12.07.2011

India, July 12 -- Gravita India has partnered and acquired 80% stake in Metal, Inc., Kathua. The company is also under process to acquire the balance 20% stake in Metal, Inc., making it a 100% wholly owned unit, shortly. This is the company's second acquisition in the state of Jammu and Kashmir.The latest addition shall further increase the lead smelting and refining production capacity of Gravita India by 3,600 MT per annum to 46,200 MT per annum. This acquisition will enable the company to successfully cater the growing demand for its products and to better serve customers from Northern part of the company.The company shall benefit from this acquisition in the Tax heaven zone in terms of improved profit margins. The company expects an addition of approximately Rs 400.000 to 450.000 crore and Rs 30.000 crore respectively to the top and bottom line of the company during the current fiscal.Recently, Gravita India together with its subsidiary company - Gravita Exim had acquired 60% stake in K. M. Udyog, Jammu. The installed lead manufacturing and refining capacity of K. M. Udyog, Jammu was 7200 MT per annum.Gravita India manufactures lead metal using recycling and smelting process, besides it also makes other lead based products and lead alloys. Lead is the second most recycled metal in the world and is also most widely used across in industrial sectors, especially automobiles. Published by HT Syndication with permission from Accord Fintech.

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.47.84
UK Pound	1	Rs.75.40
Euro	1	Rs.65.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		45

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.