MIRA INFORM REPORT

Report Date :

23.04.2012

IDENTIFICATION DETAILS

Name :	INDIAN ACRYLICS LIMITED
Registered Office :	Village Harkishanpura, Sub-Teh., Bhawanigarh, District, Sangrur – 148 026, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.02.1986
Com. Reg. No.:	16-6715
Capital Investment / Paid-up Capital :	Rs.1313.222 Millions
CIN No.: [Company Identification No.]	L24301PB1986PLC006715
Legal Form :	A Public limited liability company. The company share’s are listed on stock exchange.
Line of Business :	Manufacturer and Distributor of Acrylic Fibre.
No. of Employees :	450 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Village Harkishanpura, Sub-Teh., Bhawanigarh, District, Sangrur – 148 026, Punjab, India
Tel. No.:	91-167-2278106 / 2278166
Fax No.:	91-167-2278110
E-Mail :	shares@indianacrylics.com ialsadmn@indianacrylics.com sandeep@indianacrylics.com info@indianacrylics.com
Website :	www.indianacrylics.com
Corporate Office :	SCO 49-50, Sector 26, Madhya Marg, Chandigarh – 160 019, India
Tel. No.:	91-172-2793112 / 2792385 / 2790979 / 2793117 / 2790831
Fax No.:	91-172-2794834 / 2790887 / 2790835

DIRECTORS

As on 31.03.2011

Name :	Mrs. Kavita Singh
Designation :	Chairperson
Name :	Mr. R. K. Garg
Designation :	Managing Director
Name :	Mr. Dheeraj Garg
Designation :	Additional Managing Director
Name :	Mr. A. S. Chatha, I.A.S. (Retired)
Designation :	Director
Name :	Rear Adm. M.M. Chopra (Retired)
Designation :	Director
Name :	Mr. A. K. Mahajan
Designation :	Nominee PSIDC
Name :	Mrs. Kalpana Gupta
Designation :	Nominee PNB
Name :	Prof. (Dr.) B.B. Tandon
Designation :	Director
Name :	Mr. H. K. Singhal
Designation :	Finance Director

KEY EXECUTIVES

Name :	Mr. Bhavnesh K. Gupta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	13,395,662	9.90
Central Government / State Government(s)	18,330,000	13.55
Bodies Corporate	39,356,648	29.08
Sub Total	71,082,310	52.53
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	71,082,310	52.53
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	232,150	0.17
Financial Institutions / Banks	15,561,250	11.50
Sub Total	15,793,400	11.67
(2) Non-Institutions
Bodies Corporate	8,392,379	6.20
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	28,146,225	20.80
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	11,571,357	8.55
Any Others (Specify)	336,491	0.25
Non Resident Indians	336,491	0.25
Sub Total	48,446,452	35.80
Total Public shareholding (B)	64,239,852	47.47
Total (A)+(B)	135,322,162	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)	135,322,162	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Distributor of Acrylic Fibre.

Products :

Product Description	Item Code No.
Acrylic Fibre	5503.30
Acrylic Tow	5501.30
Acrylic Waste	5505.10

PRODUCTION STATUS (AS ON 31.03.2011)

Quantitative Data	Item manufactured	2010-2011 Qty.(MT)
Licenced /Registered Capacity	Acrylic Fibre and Waste	Delicenced
Installed Capacity #	Acrylic Fibre and Waste	42000
Production	Acrylic Fibre	26499
	Acrylic Fibre Waste	515

# AS certified by the Management and relied on by the Auditors being a technical matter.

GENERAL INFORMATION

No. of Employees :

450 (Approximately)

Bankers :

· Punjab National Bank

· State Bank of India

· State Bank of Patiala

· Indian Overseas Bank

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Financial Institutions
Foreign Currency Loans (already crystallised in rupees)	67.868	67.868
Rupee Term Loan	149.251	149.251
Funded Interest	174.787	174.787
Interest Accrued and due	208.821	170.862
Part payment made to IDBI against settlement	(165.000)	(45.000)
From Banks
Rupee Term Loans	38.038	60.795
Working Capital Term Loan (Rupee Loan)	12.500	25.012
Foreign Currency Loans	158.810	213.347
Cash Credit Account	100.793	153.060
Short Term Debt	0.000	212.871
Interest Accrued and Due	1.490	1.730
Total	747.358	1184.583

· The Term Loans / working capital term loan from Financial Institutions / banks are secured by mortgage created or to be created on all the immovable assets of the Company, both present and future, hypothecation of all the moveable assets including movable machinery, machinery parts, tools and accessories and other movables, both present and future (save and except book debts), subject to charges created or to be created in favour of the Company’s Bankers for securing working capital limits. These Loans are further guaranteed by the managing director besides two directors.

· Cash Credit / Working capital borrowings are secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including stocks in transit of the company as well as of Indlon Chemicals Limited and also by a second charge on the fixed assets of the company and further guaranteed by the managing director besides two directors and Indlon Chemicals Limited.

· Short Term Debt is secured against the letters of comfort issued by Banks.

Banking Relations :	--
Auditors :
Name :	S. C. Dewan and Company Chartered Accountants
Address :	Swastik Vihar, Panchkula
Subsidiaries :	Indlon Chemicals Limited
Enterprises over which Key Management personnel (KMP) are able to exercise significant control and with whom transactions have taken place during the year:	· SAB Industries Limited · Steel Strips Limited · Malwa Chemtex Udyog Limited · Steel Strips Wheels Limited · Steel Strips Infrastructures Limited

CAPITAL STRUCTURE

As on 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

Issued, Subscribed andPaid-up Capital :

No. of Shares	Type	Value	Amount
135322162	Equity Shares	Rs.10/- each	Rs.1353.222 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

Issued, Subscribed andPaid-up Capital :

No. of Shares	Type	Value	Amount
131322162	Equity Shares	Rs.10/- each	Rs.1313.222 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		1313.222	1313.222	1313.222
2] Share Application Money		0.000	0.000	0.000
3] Reserves and Surplus		11.923	11.923	11.923
4] (Accumulated Losses)		(996.701)	(1000.260)	(1321.103)
NETWORTH		328.444	324.885	4.042
LOAN FUNDS
1] Secured Loans		747.358	1184.583	1771.505
2] Unsecured Loans		115.000	0.000	0.000
TOTAL BORROWING		862.358	1184.583	1771.505
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1190.802	1509.468	1775.547
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1027.018	1434.221	1600.723
Capital work-in-progress		16.404	29.376	38.282
INVESTMENT		0.000	0.000	3.132
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS AND ADVANCES
	Inventories	1245.102	655.994	823.190
	Sundry Debtors	364.789	333.605	217.733
	Cash and Bank Balances	68.872	146.653	286.883
	Other Current Assets	30.982	25.379	31.196
	Loans and Advances	148.337	190.021	249.828
Total Current Assets		1858.082	1351.652	1608.830
Less : CURRENT LIABILITIES AND PROVISIONS
	Sundry Creditors	1593.823	1120.581	1303.561
	Other Current Liabilities	47.781	61.880	60.364
	Provisions	69.098	123.320	111.495
Total Current Liabilities		1710.702	1305.781	1475.420
Net Current Assets		147.380	45.871	133.410
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1990.802	1509.468	1775.547

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net Sales	4081.750	4082.600	3643.314
		Other Income	53.332	106.103	37.628
		TOTAL	4135.082	4188.703	3680.942
Less	EXPENSES
		Manufacturing and Other Expenses	3613.035	3477.808	4157.770
		TOTAL	3613.035	3477.808	4157.770
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		522.047	710.895	(476.828)
Less	FINANCIAL EXPENSES		124.011	187.073	153.516
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		398.036	523.822	(630.344)
Less/ Add	DEPRECIATION/ AMORTISATION		490.033	199.711	105.940
	PROFIT / (LOSS) BEFORE TAXATION AND NON RECURRING / EXTRAORDINARY ITEMS		(91.997)	324.111	(736.284)
Add	PROVISION MADE FOR ACCUMULATED CENVAT NOW REVERSED BEING NO MORE REQUIRED		96.335	0.000	(96.335)
Add	WRITE BACK IN TERM OF ONETIME SETTLEMENT		0.000	0.000	421.813
Add	PRIOR PERIOD ADJUSTMENT		0.107	(2.816)	(1.564)
	PROFIT/(LOSS) BEFORE TAX		4.445	321.295	(412.370)
Less	TAX		0.886	0.452	0.651
	PROFIT/(LOSS) AFTER TAX		3.559	320.843	(413.021)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1000.260)	(1321.103)	(908.082)
	BALANCE CARRIED TO THE B/S		(996.701)	(1000.260)	(1321.103)
	EARNINGS IN FOREIGN CURRENCY		1074.198	1108.450	264.429
	IMPORTS
		Raw Materials	1640.830	1980.047	1868.950
		Components and Spare Parts	15.658	21.305	7.004
	TOTAL IMPORTS		1656.488	2001.352	1875.954
	Earnings Per Share (Rs.)		0.03	2.45	(3.15)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^RD Quarter
Net Sales	757.400	1269.700	1495.200
Total Expenditure	711.000	1339.200	1486.300
PBIDT (Excl OI)	46.400	(69.500)	8.900
Other Income	26.700	5.300	5.800
Operating Profit	73.100	(64.200)	14.700
Interest	27.800	38.900	14.300
Exceptional Items	0.000	78.600	0.000
PBDT	45.300	(24.500)	0.400
Depreciation	29.400	15.600	29.400
Profit Before Tax	15.900	(40.100)	(29.000)
Tax	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	15.900	(40.100)	(29.000)
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	15.900	(40.100)	(29.000)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.09	7.66	(11.22)
Net Profit Margin (PBT/Sales)	(%)	0.11	7.87	(11.32)
Return on Total Assets (PBT/Total Assets}	(%)	0.15	11.53	(12.85)
Return on Investment (ROI) (PBT/Networth)		0.01	0.99	(102.02)
Debt Equity Ratio (Total Liability/Networth)		7.83	7.67	803.30
Current Ratio (Current Asset/Current Liability)		1.09	1.04	1.09

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	No
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

FINANCIAL HIGHLIGHTS

In the year 2010-11, there is substantial increase in the prices of raw materials. The market and margins for their products shrank during the year. The sales volumes decreased from 36611 MT to 24147 MT. Overall sales value, however, reached the same level as previous year due to higher unit prices and increase in sales of acrylic yarn from 882 MT to 2379 MT.

Despite lower margins and lower sales, the Company earned a profit of Rs.398.000 millions before depreciation and prior period adjustments. During the year, the method of charging depreciation on Plant and Machinery, installed during the years 1994 95 onwards, has been changed from ‘Straight Line Method’ to ‘Written Down Value Method’ keeping in view the technological developments in this industry as well as obsolescence. Accordingly, there is an additional charge of Rs.377.100 millions relating to previous years, resulting into a lower net profit of Rs.3.600 millions as against Rs.320.800 millions during the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments

High price of raw materials had slowdown effect on the demand as well as profitability of the acrylic fibre business in the year under consideration. However, the new capacities of raw material are being added overseas which are likely to be operational soon thereby easing off the pressure from raw material prices.

FUTURE OUTLOOK

In the year ahead, crude oil prices are likely to remain firm and high keeping continuous cost pressure on the major feedstocks of petrochemicals industry. The textile chain including cotton, polyester and all other chemical fibre have witnessed strong uptrend after August 2010. In the backdrop of tight monetary policies being followed by various Governments across all major economies of the world to fight against the inflation as well as many other uncertainties such as weather, Chinese Yuan appreciation etc. it is quite difficult to predict how long this strong uptrend will continue. However, the directors are confident to maintain its market Share and profitability as a result of widely spread market for its product, a well diversified customer and product base and also various cost cutting measures being followed by it.

The raw material prices continue to increase this year also in line with the global changes. Company has successfully handled this challenge and kept its market share by working hard on development of new export markets and products. The loss of gross margin caused by high raw material prices is partially off-set by purchase of power recently started by the Company under “Open-Access” scheme and lowering of cost of production due to energy conservation measures taken by it the revenues from sale of power is also increasing. Efforts are also being made further to cut the cost by using new technologies available for conservation of power, process improvements etc.

The Company has also reached a One Time Settlement (OTS) with IDBI Bank Limited and payments as per OTS are being made. This will help in reducing the recurring financial costs substantially in future.

FINANCIAL STATUS

There is no change in the issued and subscribed capital of Rs.1313.221 millions during the year. However, the Company has allotted additional 40,00,000 equity shares of Rs.10/- each at par to IDBI Bank Limited during the current year 2011-12 in terms of OTS scheme, against conversion of a part of the loan into Equity in terms of the Loan Agreements with IDBI.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2011

(Rs. in millions)

Particulars	Quarter Ended Un-Audited		Nine Month Ended
	31.12.2011	30.09.2011	31.12.2011
Gross Sales
- Domestic Sale	903.900	992.100	2473.300
- Export Sale	666.300	355.800	1244.600
Less Excise Duty	75.000	78.200	195.500
Net Sales	1495.200	1269.700	3522.400
Other Income	5.800	5.300	37.800
Total Expenditure
a. Increase/ decrease in stock in trade	100.600	385.700	140.100
b. Cost of materials	1085.100	787.200	2769.100
c. Employee cost	31.500	26.500	85.600
d. Depreciation	29.400	15.600	74.400
e. Other Expenditure	269.100	138.200	540.300
f. Prior Period Adjustment	--	1.600	1.400
Total	1515.700	1354.800	3610.900
Interest	14.300	38.900	81.000
Exceptional Items	--	(78.600)	(78.600)
Profit/ (Loss) before Tax	(29.000)	(40.100)	(53.100)
Tax expenses	--	--	--
Net Profit/ (Loss)	(29.000)	(40.100)	(53.100)
Paid-up Equity Share Capital	1353.200	1353.200	1353.200
Reserves Excluding Revaluation Reserves	--	--	--
Earning Per Shares- Basic and Diluted (Rs.)	(0.21)	(0.30)	(0.39)
Aggregate for non promoter shareholding
No. of shares	64239852	64239852	64239852
Percentage of shareholding	47.47%	47.47%	47.47%
Promoters and Promoter group Shareholding:
a) Pledge/ Encumbered
- Number of Shares	21069010	21069010	21069010
- Percentage of Shareholding	29.64	29.64	29.64
- Percentage of Share capital	15.57	15.57	15.57
b) Non-encumbered
- Number of Shares	50013300	50013300	50013300
- Percentage of Shareholding	70.36	70.36	70.36
- Percentage of Share capital	36.96	36.96	36.96

NOTE

· The above results were reviewed by the Audit Committee and have been taken on record in the meeting of Board of Directors held on 13.02.2012

· The statutory auditors have carried out a limited review of the accounts for the quarter ended 31.12.2011

· The company is mainly in one business “Manufacture and sale/ trading of Acrylic Fibre/ Yarn”, as such Segment Reporting as defined in Accounting Standard 17 is not applicable

· There were no investor complaints pending in the beginning of the quarter. 03 complaints were received during the quarter and all of them have been resolved.

FIXED ASSETS

· Land

· Site Development

· Building

• Factory
• Housing Colony

· Plant and Machinery

· Electrical Installation

· Tubewell

· Weigh Bridge

· Tools and Implements

· Furniture / Fixture and Office Equipment

· Vehicles

WEB DETAILS

BUSINESS DESCRIPTION

Subject is an India-based company. The Company is engaged in the manufacturing, selling and trading of acrylic fiber/yarn. The Company is the manufacturer of dry spun acrylic fiber, under the brand name INDLON. The products manufactured by the Company include acrylic fiber, acrylic tow and acrylic waste. The Company develops uses of acrylic fiber, such as mink blankets, socks, upholstery, sarees, dress material and soft toys. During the fiscal year ended March 31, 2010, the Company produced 35,971 metric tons of acrylic fiber, and 665 metric tons of acrylic fiber waste. The wholly owned subsidiaries of the Company are Indlon Chemicals Limited and Indilun Acrylics (Shanghai) Company Limited. For the nine months ended 31 December 2010, Subject's revenue decreased 12% to RS2.76B. Net loss totaled RS11.7M vs. an income of RS201M. Revenue reflects considerable decrease in income from operations. Net loss reflects an increase in cost of materials and higher employee cost. Subject is an India-based company. The Company is engaged in the manufacturing, selling and trading of acrylic fiber/yarn.

BOARD OF DIRECTORS

Mr. R. K. Garg - Chairman, Managing Director and Whole-Time Director

Mr. R. K. Garg serves as Managing Director, Whole-Time Director of subject. He is also the Chairman of Steel Strips Wheels Limited, Steel Strips Infrastructures Limited, SAB lndustries Limited and Steel Strips Limited.

Mr. A. S. Chatha - Non-Executive Independent Director

Mr. A. S. Chatha, I.A.S. (Retired), B.E. (Hons), is Non-Executive Independent Director of subject. He joined the I.A.S. cadre of Punjab in 1963 and served it with distinction till 1995. He held wide range of assignments from the field to the secretariat such as Deputy Commissioner of Patiala, Sangrur, Ludhiana, Managing Director, PSIDC Limited, Joint Secretary, Ministry of Commerce, Government of India and Principal Secretary, Department of Industries, Cooperation, Housing, Irrigation and Power, Home and Justice and finally as Chief Secretary to the Government of Punjab.

Mr. M. M. Chopra - Non-Executive Independent Director

Admiral Retired Shri. M. M. Chopra serves as Non-Executive Independent Director of subject. He is a retired from Indian Navy where he held various prestigious positions. After retiring from navy, he has functioned as the Director of M/s National Stock Exchange Limited. He has been guiding Company's Company to streamline procedures, better co-ordination and faster decision making. He is the Chairman of Audit Committee, Remuneration Committee and Member of Sub-Committee.

Mr. Dheeraj Garg - Additional Managing Director, Whole-Time Director

Mr. Dheeraj Garg serves as Additional Managing Director, Whole-Time Director of subject. He is a Business Administration Graduate from U.S.A., is Managing Director of Steel Strips Wheels Limited (SSWL) since 01.10.1996. His contribution to SSWL has been commendable for improvement in the quality of product and technology upgradation of the facilities beside expansion that had resulted in the Company having State-of-the-art manufacturing capabilities and increase in profitability.

Mr. H. K. Singhal - Finance Director, Compliance Officer, Whole-Time Director

Mr. H. K. Singhal is Finance Director, Compliance Officer, Whole-Time Director of subject. He is a qualified Chartered Accountant, associated with the Company since launching of the project, has more than 30 years of experience in the area of Management and Corporate Finance.

Prof. B. B. Tandon - Non-Executive Independent Director

Prof., Dr. B. B. Tandon is Non-Executive Independent Director of subject. He holds M.Sc. from London School of Economics and a Textile Technologist. He was Chairman of Ludliiana Stock Exchange. Earlier he was the Dean and Chairman of the University Business School, Panjab University, Chandigarh and Director Gian Jyoti Institute of Management and Technology, Mohali.

Education

MS, London School of Economics

PRESS RELEASES

OUTCOME OF EGM

India, December 19 -- Indian Acrylics Limited has informed BSE that the members at the Extra Ordinary General Meeting (EGM) of the Company held on December 17, 2011, inter alia, have accorded their approval for the re-appointment of Shri R. K. Garg, Managing Director for a further period of three years w.e.f. March 01, 2012, on the existing terms and conditions.

INDIAN ACRYLICS TO CONSIDER APPOINTMENT OF DIRECTOR

India, November 21 -- Indian Acrylics has informed that an Extra Ordinary General Meeting of the company will be held on December 17, 2011, to consider and approve re-appointment of R K Garg, Managing Director for a further period of three years with effect from March 01, 2012, on the existing terms and conditions. The above information is part of the company's filing submitted to the BSE.

EGM ON DEC 17, 2011

India, November 21 -- Indian Acrylics Limited has informed BSE that an Extra Ordinary General Meeting of the Company will be held on December 17, 2011, interalia to consider and approve re-appointment of Shri. R K Garg, Managing Director for a further period of three years w.e.f. March 01, 2012, on the existing terms and conditions.

OUTCOME OF ALLOTMENT COMMITTEE MEETING

India, May 09 -- Indian Acrylics Limited has informed BSE that the meeting of the Allotment Committee of Board of Directors of the Company was held on May 07, 2011 and have allotted 40,00,000 equity shares of Rs.10/- each at par aggregating Rs.40.000 millions to IDBI Bank in terms of the One Time Settlement with IDBI Bank.

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.51.99
UK Pound	1	Rs.83.54
Euro	1	Rs.68.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	1
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		15

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.