MIRA INFORM REPORT

Report Date :

08.12.2012

IDENTIFICATION DETAILS

Name :	ATUL LIMITED (w.e.f. 31.07.1996)
Formerly Known As :	ATUL PRODUCTS LIMITED
Registered Office :	Ashoka Chambers, Rasala Marg, Eillsbridge, Ahmedabad - 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.12.1975
Com. Reg. No.:	04-002859
Capital Investment / Paid-up Capital :	Rs.296.800 Millions
CIN No.: [Company Identification No.]	L99999GJ1975PLC002859
TAN No.: [Tax Deduction & Collection Account No.]	AMMA00199D/ SRTA02006E/ SRTA02005D/ SRTA01637G
PAN No.: [Permanent Account No.]	AABCA2390M
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Dyestuff Chemicals, Drugs and Pharmaceuticals, Cresol, Sodium Sulphite, Sodium Sulphate, Soda Ash, Gypsum, Resorcinol, Aslurry, Spent Acid, Dinitro Diphenye, Sulfone, Metanilic Acid, Heavy Duty Break Fluid, Para Cand Panisaldehyde.
No. of Employees :	2737 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 25600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A+ (Long Term Debt)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	March 2012

Rating Agency Name	CARE
Rating	A1+ (Short Term Debt)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Ashoka Chambers, Rasala Marg, Eillsbridge, Ahmedabad - 380006, Gujarat, India
Tel. No.:	91-79-26423706/ 26427520/ 26449294/ 26460520
Fax No.:	91-79-26404111
E-Mail :	wk.ag@atul.co.in wk.ar@atul.co.in wk.cl@atul.co.in fi@atul.co.in sec@atul.co.in ahd@atul.co.in jayesh_desai@atul.co.in
Website :	http://www.atul.co.in
Head Office :	Colours Division Post Atul, Valsad – 396020, Gujarat, India
Tel. No.:	91-2632-233261/ 5
Fax No.:	91-2632-233619 / 233375 / 233024 / 233619 / 233384
Mumbai Office:	310 B, Veer Savarkar Marg, Adjacent to Prabhadevi Telephone Exchange, Opposite India United Mills, Prabhadevi, Dadar (West), Mumbai-400028, Maharashtra, India
Tel. No.:	91-22-39876000
Fax No.:	91-22-24376061 / 24386065
Factory 1 :	297, GIDC Industrial Estate, Ankleshwar - 393 002, Gujarat, India
Factory 2 :	Atul, District Valsad, Gujarat
Factory 3 :	MIDC, Tarapur, Thane, Maharashtra

DIRECTORS

As on: 30.03.2012

Name :	Mr. S. S. Lalbhai
Designation :	Chairman and Managing Director
Name :	Mr. G. S. Patel
Designation :	Director
Name :	Dr. S. S. Baijal
Designation :	Director
Name :	Mr. Bansi S. Mehta
Designation :	Director
Date of Birth:	19.09.1935
Name :	Mr. H. S. Shah
Designation :	Director
Name :	Mr. S. A. Lalbhai
Designation :	Managing Director
Name :	Mr. S. M. Datta
Designation :	Director
Date of Birth/ Age:	01.07.2010
Name :	Mr. K Aparajithan
Designation :	Director
Name :	Mr. R. A. Shah
Designation :	Director (Alternate Director to Dr K Aparajithan)
Name :	Mr. B. N. Mohanan
Designation :	Whole time Director
Name :	Mr. V S Rangan
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	859991	2.90
Bodies Corporate	14065944	47.42
Sub Total	14925935	50.32
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14925935	50.32
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1463429	4.93
Financial Institutions / Banks	70336	0.24
Central Government / State Government(s)	336	0.00
Insurance Companies	548767	1.85
Foreign Institutional Investors	10295	0.03
Any Others (Specify)	8154	0.03
Trusts	8154	0.03
Sub Total	2101317	7.08
(2) Non-Institutions
Bodies Corporate	3520804	11.87
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	5340302	18.00
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3636618	12.26
Any Others (Specify)	136757	0.46
Non Resident Indians	136757	0.46
Sub Total	12634481	42.60
Total Public shareholding (B)	14735798	49.68
Total (A)+(B)	29661733	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	29661733	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Dyestuff Chemicals, Drugs and Pharmaceuticals, Cresol, Sodium Sulphite, Sodium Sulphate, Soda Ash, Gypsum, Resorcinol, Aslurry, Spent Acid, Dinitro Diphenye, Sulfone, Metanilic Acid, Heavy Duty Break Fluid, Para Cand Panisaldehyde.

Products :

Item Code No.	Product Description
3204	Synthetic Organic Colouring Matter
291200	Para Anisic Aldehyde
390730.09	Epoxy Resins

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Aroma Products	MT	10400	4150
Herbicides	MT	12190	13217
Pharma Intermediates	MT	707	361
Caustic, Sulphuric, Resorcinol, Formaldehyde and Carbamite	MT	123436	98204
Cresols	MT	14420	7659
Dyes	MT	16343	14977
Resins	MT	18850	19418
Sulphones and Intermediates	MT	1620	1443
By products and miscellaneous chemicals	MT	NA	28836

Note:

1. Licensed Capacity - Delicensed vide Gazette Notification No. S.O. 477( E ) dated July 25, 1991.

2. As certified by General Manager - Manufacturing and being a technical matter, accepted by the Auditors, as correct.

3. Previous year figures have been recast on reclassification.

4. Figures in bracket are in respect of the previous year.

5. Gross production includes production for captive consumption.

GENERAL INFORMATION

No. of Employees :

2737 (Approximately)

Bankers :

· Axis Bank

· Bank of Baroda

· Bank of India

· Export Import Bank of India

· State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans
Rupee term loans from banks	101.400	2959.100
Rupee term loans from financial institutions	520.800
Foreign currency term loans from banks	207.800
Foreign currency term loans from financial institutions	618.100
Loans repayable on demand from banks	1518.500
Total	2966.600	2959.100
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Loans from banks	250.700	323.200
Rupee term loans from banks	0.900
Buyers’ credit arrangement	227.100
Total	478.700	323.200

Notes:

(a) (i) 1. Rupee term loan from a bank amounting to Rs. 62.300 Millions (Previous year: Rs. 125.100 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from June 30, 2009 along with interest @ PLR -2% p.a.

2. Rupee term loan from a bank amounting to Rs. 12.64 Millions (Previous year: Rs. 17.60 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 20 equal quarterly installments beginning from October 30, 2009 along with interest @ Base rate +3.50% p.a.

3. Rupee term loan from a bank amounting to Rs. 75.000 Millions (Previous year: Rs. 125.000 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from October 28, 2009 along with interest @ Base rate +1.50% p.a.

(a) (ii) 1. Rupee term loan from a financial institution amounting to Rs. NIL (Previous year: Rs. 62.100 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 20 equal quarterly installments beginning from April 10, 2007 along with interest @ 10.75% p.a.

2. Rupee term loan from a financial institution amounting to Rs. 625.000 Millions (Previous year: Rs. 729.100 Millions) is secured by first pari passu charge by way of hypothecation of all movable fixed assets and mortgage of immovable properties of the Company, both present and future, excluding specific assets with exclusive charge and second charge on entire current assets of the Company, both present and future.

Terms of repayment

Repayable in 15 equal half yearly installments beginning from January 14, 2011 along with interest ranging from 6.99% p.a. to 7.46% p.a.

3. Rupee term loan from a financial institution amounting to Rs. 27.100 Millions (Previous year: Rs. 63.400 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from February 19, 2009 along with interest LTMLR + 180 bps p.a.

(a) (iii) 1. Foreign currency term loan from a bank amounting to Rs. NIL (Previous year: Rs. 37.500 Millions) is secured by first pari passu charge on the fixed assets of the

Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from December 31, 2007 along with interest @ 6 Month LIBOR +500 bps p.a.

2. Foreign currency term loan from a bank amounting to Rs. NIL (Previous year: Rs. 60.900 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from May 05, 2008 along with interest @ 6 Month LIBOR +450 bps p.a.

3. Foreign currency term loan from a bank amounting to Rs. NIL (Previous year: Rs. 55.800 Millions) is secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from June 30, 2008 along with interest @ 6 Month LIBOR +425 bps p.a.

4. Foreign currency term loan from a bank amounting to Rs. 255.800 Millions (Previous year: Rs. NIL) is to be secured by first pari passu charge on the fixed assets of the Company as a whole, both present and future, excluding specific assets with specific charge.

Terms of repayment

Repayable in 16 equal quarterly installments beginning from July 31, 2012 along with interest @ 3 Month LIBOR +225 bps p.a.

(a) (iv) 1. Foreign currency loan from a financial institution amounting to Rs. 639.500 Millions (Previous year: Rs. 11.16 Millions) is secured by first pari passu charge by way of hypothecation of all movable fixed assets and mortgage of immovable properties of the Company, present and future, excluding specific assets with exclusive charge and second charge on entire current assets of the Company, present and future.

Terms of repayment

Repayable in 7 half yearly installments beginning from July 15, 2012 along with interest @ 6 Month LIBOR +225 bps p.a.

(a) (v) 1. Unsecured rupee term loan from a bank amounting to Rs. 0.11 Millions (Previous year: Rs. NIL)

Terms of repayment

Repayable in 20 equal quarterly installments beginning from November 30, 2011 along with interest @ Base rate +2.5% p.a.

Secured by hypothecation of tangible current assets (other than movable plant and equipment), namely, inventories and book debts of the Company as a whole and also secured by second and subservient charge on immovable and movable assets of the Company to the extent of individual bank limit as mentioned in joint consortium documents. This also extends to guarantees given by the bankers.

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Cost Auditors
Name :	R. Nanabhoy and Company Chartered Accountants
Subsidiary Companies :	· Ameer Trading Corporation Limited · Atul Bioscience Limited · Atul Brasil Quimicos Ltda · Atul China Limited {formerly known as Atul International · Trading (Shanghai) Company Limited} · Atul Deutschland GmbH · Atul Europe Limited · Atul Rajasthan Date Palms Limited · Atul USA Inc (formerly known as Atul Americas Inc) · DPD Limited
Joint Venture Company :	· Rudolf Atul Chemicals Limited
Associate Companies :	· Amal Limited · Anchor Adhesives Private Limited · AtRo Limited · Atul Ayurveda Limited · Atul Crop Care Limited · Atul Entertainment Limited · Atul Hospitality Limited · Atul Infotech Limited · Atul Medical Care Limited · Atul Seeds Limited · Gujarat Synthwood Limited · Jayati Infrastructure Limited · M. Dohmen S.A. · Osia Dairy Limited
Enterprises over which control exercised by :	· Aasthan Dates Limited · Atul Bio Space Limited · Atul Clean Energy Limited · Biyaban Agri Limited · Raja Dates Limited
Enterprises over which significant influence exercised :	· Atul Elkay Polymers Limited · Atul (Retail) Brands Limited · LAPOX Polymers Limited · Osia Infrastructure Limited
Key management personnel and employees are Trustees :	· Welfare funds · Atul Club · Atul Foundation Trust · Atul Kelvani Mandal · Atul Rural Development Fund · Atul Vidyalaya

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs. 10/- each	Rs.800.000 Millions
8000000	Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs.800.000 Millions
	Total		Rs. 1600.000 Millions

Issued :

No. of Shares	Type	Value	Amount
29691780	Equity Shares of	Rs. 10/- each	Rs. 296.900 Millions

Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
29661733	Equity Shares of	Rs. 10/- each	Rs. 296.600 Millions
	Add: Forfeited Shares (amount paid up)		Rs. 0.200 Millions
	Total		Rs. 296.800 Millions

Notes:

1. The Company has two classes of shares referred to as Equity Shares having a par value of Rs.10 and Cumulative Redeemable Preference Shares having a par value of Rs.100.

2. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

3. Each holder of Equity Shares is entitled to one vote per share.

4. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

5. Details of Shareholders holding more than 5% of Equity Shares:

Sr. No.	Name of the Shareholder	As at March 31, 2012
		Holding %	No of shares
1	Aeon Investments Private Limited	5.9%	1764382
2	Aura Securities Private Limited	5.4%	1614045

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		296.800	296.800	296.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6122.500	5374.100	4549.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6419.300	5670.900	4846.100
LOAN FUNDS
1] Secured Loans		2966.600	2959.100	2590.100
2] Unsecured Loans		478.700	323.200	357.700
TOTAL BORROWING		3445.300	3282.300	2947.800
DEFERRED TAX LIABILITIES		223.100	230.600	225.800
TOTAL		10087.700	9183.800	8019.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4177.700	3900.700	4122.400
Capital work-in-progress		559.500	294.700	72.300
Advance Against Capital Exp.		0.000	66.500	41.800
INVESTMENT		1250.000	833.200	650.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
Other non-current assets		275.600	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2929.900	2613.900	2112.900
	Sundry Debtors	3682.200	3016.200	2706.100
	Cash & Bank Balances	174.600	163.500	148.400
	Other Current Assets	175.100	0.000	0.000
	Loans & Advances	1236.000	1580.500	1298.100
Total Current Assets		8197.800	7374.100	6265.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2756.400	2714.000	2476.900
	Current Liabilities	1049.700	185.600	156.700
	Provisions	566.800	385.800	498.900
Total Current Liabilities		4372.900	3285.400	3132.500
Net Current Assets		3824.900	4088.700	3133.000
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10087.700	9183.800	8019.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	17955.700
		Other Income	116.400
		TOTAL (A)	18072.100
Less	EXPENSES
		Cost of materials consumed	10551.300
		Purchase of stock-in-trade	200.100
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(153.300)
		Employee benefit expenses	1172.000
		Exchange rate difference	120.700
		Other expenses	4154.100
		Long-term investment in subsidiary company	(65.100)
		TOTAL (B)	15979.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2092.300
Less	FINANCIAL EXPENSES (D)		431.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1661.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		436.500
	PROFIT BEFORE TAX (E-F) (G)		1224.800
Less	TAX (H)		343.700
	PROFIT AFTER TAX (G-H) (I)		881.100
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3340.000
	APPROPRIATIONS
		Transfer to General Reserve	90.000
		Proposed Dividend	140.000
		Dividend distribution tax	20.000
	BALANCE CARRIED TO THE B/S		3970.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	7775.500
	TOTAL EARNINGS		7775.500
	IMPORTS
		Raw Materials	3095.400
		Trading finished goods	110.300
		Capital Goods	54.700
	TOTAL IMPORTS		3260.400
	Earnings Per Share (Rs.)		29.70

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	15076.900	11681.200
		Operating Income	400.200	302.100
		Other Income	57.900	53.500
		TOTAL (A)	15535.000	12036.800
Less	EXPENSES
		Cost of Goods sold material consumed	8784.300	6567.700
		Manufacturing expenditure	2259.600	1818.500
		Employee’s Emoluments	1055.600	1032.200
		Others	1412.800	1101.600
		Exchange Rate Difference	90.900	90.700
		Exceptional Items	(101.000)	0.000
		TOTAL (B)	13502.200	10610.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2032.800	1426.100
Less	FINANCIAL EXPENSES (D)		254.600	255.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1778.200	1170.500
Less/ Add	DEPRECIATION/ AMORTISATION (F)		385.400	373.000
	PROFIT BEFORE TAX (E-F) (G)		1392.800	797.500
Less	TAX (I)		431.700	269.600
	PROFIT AFTER TAX (G-I) (J)		961.100	527.900
Add:	Tax Adjustments relating to earlier years Income tax and wealth tax		(61.100)	1.300
	Additional MAT Entitlement for the earlier years		0.000	38.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2647.100	2274.200
Less	APPROPRIATIONS
		Transfer to General Reserve	56.800	56.800
		Proposed Dividend	133.500	118.700
		Corporate Dividend tax on above	21.600	19.700
	BALANCE CARRIED TO THE B/S		3335.200	2647.100
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6513.300	4912.500
	TOTAL EARNINGS		6513.300	4912.500
	IMPORTS
		Raw Materials	3328.800	1542.500
		Finished goods – for trading	28.400	40.500
		Capital Goods	21.600	8.000
	TOTAL IMPORTS		3378.800	1591.000
	Earnings Per Share (Rs.)		30.34	19.15

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	5019.800	5434.600
Total Expenditure	4343.800	4694.900
PBIDT (Excl OI)	676.000	739.700
Other Income	87.600	56.800
Operating Profit	763.600	796.500
Interest	111.700	59.600
Exceptional Items	0.000	53.800
PBDT	651.900	790.700
Depreciation	110.800	121.000
Profit Before Tax	541.100	669.700
Tax	166.300	182.700
Provisions and contingencies	0.000	0.000
Profit After Tax	374.800	487.000
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	374.800	487.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.86	6.19	4.39
Net Profit Margin (PBT/Sales)	(%)	6.82	9.24	6.83
Return on Total Assets (PBT/Total Assets}	(%)	9.91	12.36	7.68
Return on Investment (ROI) (PBT/Networth)		0.19	0.25	0.16
Debt Equity Ratio (Total Liability/Networth)		1.22	1.16	1.25
Current Ratio (Current Asset/Current Liability)		1.87	2.24	2.00

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
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 involved in	Yes
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 1368 of 2007

Status :

PENDING

( Converted from : ST/3196/2007 )

CCIN No : 001092200701368

Last Listing Date:28/02/2008

Coram

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA

HONOURABLE MR.JUSTICE J.C.UPADHYAYA

S.NO.

Name of the Petitioner

Advocate On Record

1

THE COMMISSIONER OF INCOME TAX-I

MRS MAUNA M BHATT for: Appellant(s)  1

S.NO.

Name of the Respondant

Advocate On Record

1

ATUL LIMITED

MR MANISH J SHAH for :Opponent(s)  1

Presented On

: 09/10/2007

Registered On

: 09/10/2007

Bench Category

: DIVISION BENCH

District

: AHMEDABAD

Case Originated From

: THROUGH ADVOCATE

Listed

: 6 times

Act

INCOME-TAX ACT, 1961

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

09/10/2007

MEMO OF APPEAL/PETITION/SUIT

MR MANISH R BHATT ADVOCATE for PETITIONER(s) 1

20

-

2

24/10/2007

CERTIFIED COPY

MR MANISH R BHATT ADVOCATE for PETITIONER(s) 1

6

-

3

08/04/2008

VAKALATNAMA

MR MANISH J SHAH ADVOCATE for RESPONDENT(s) 1

5

-

4

13/11/2008

APPEARANCE NOTE

MRS MAUNA M BHATT ADVOCATE for PETITIONER(s) 1

Court Proceedings

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

28/02/2008

1

-

FOR FINAL HEARING - TAX MATTERS

FIXED RULE / ADMIT

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA

HONOURABLE MR.JUSTICE J.C.UPADHYAYA

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

1

TAX APPEAL/1368/2007

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA

29/02/2008

N

N

Certified Copy
S. No.	ApplicantName	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status
1	MR MANISH R BHATT	ORDINARY	03/03/2008	O/7494/2008	29/02/2008	13/03/2008	14/03/2008	Delivered

FINANCIAL PERFORMANCE

Net sales grew by 17% to Rs17610.000 Millions including a growth of 21% in exports and 14% in domestic market. However, the margins were under pressure and reduced slightly; the PBT before exceptional items reduced from Rs.1290.000 Millions to Rs.1160.000 Millions. The reduction in profitability was mainly on account of increase in input prices, fixed costs, exchange loss and interest. During the year, CARE assigned CARE A1+ rating to the proposed CP issue. CARE also upgraded credit rating to CARE A+ (from CARE A in the Previous year) for long-term debts, while maintaining top notch CARE A1+ for short-term debts.

MANAGEMENT DISCUSSION AND ANALYSIS

SEGMENT: LIFE SCIENCE CHEMICALS

	2011-12	2010-11	% change
Sales (Rs. In Millions)	6040.000	4920.000	230.000
Share in total revenues (%)	34	33	1

CROP PROTECTION

Products

Fungicides, Herbicides, Insecticides, Others Crop Protection Business mainly comprises Fungicides, Herbicides and Insecticides. The products are used by customers belonging to Agriculture industry for the protection of crops. The Business comprises about 13 products and 54 formulations. It is not into Seeds which is now becoming an important input for Agriculture industry.

During the year, sales increased by 16% to Rs. 358 Millions. Sales in India increased by 4% to Rs.1620.000 Millions; bulk sales in India increased by 10% whereas brand sales which are currently only in India decreased by 4% to Rs.660.000 Millions. Export sales increased by 29% to Rs. 1960.000 Millions and formed 55% of the total. Growth on account of volume was 2%.

World market for crop protection chemicals is estimated at US$ 51 bn and is growing at about 3%. Indian market for such chemicals is estimated at US$ 1 bn and is growing at about 5%. There are about 60 major companies which dominate the world marketplace, and there are about 10 companies in India having sales of more than US$ 110 mn.

The main user industry, namely, Agriculture, is growing well because of the increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) debottlenecking capacities, ii) introducing new products and new formulations, iii) significantly improving efficiencies, iv) promoting own brands and v) enhancing the presence in other countries, particularly in Africa and South America. It will also form long-term alliances with other companies.

Floods or famines will adversely affect the demand. Registration costs are high in certain countries. Fluctuations in foreign exchange will impact sales realisations. Given that some of these chemicals can be toxic, it is essential to take utmost care in their manufacture and use.

PHARMACEUTICALS

Products

APIs, API intermediates, Others

Pharmaceuticals Business mainly comprises API intermediates and a few APIs. The products are used by customers belonging to Pharmaceutical industry, under five broad therapeutic categories, namely, cardiovascular, anti-depressant, antidiabetic, anti-infective and anti-retroviral. The Business comprises 28 products, relatively new to the portfolio (of products) of the Company. It is not currently engaged in formulations of APIs.

During the year, sales increased by 34% to Rs. 2460.000 Millions. Sales in India increased by 40% to Rs. 1250.000 Millions. Export sales increased by 27% to Rs. 121 Millions and formed 49% of the total. Growth on account of volume was 13%. Atul Bioscience, a 100% subsidiary company, focussed on production of advanced API intermediates and now has two multi-purpose plants manufacturing a range of products, sales of which increased from Rs. 4Millions to Rs. 11 Millions, almost wholly because of volume.

World market for pharmaceuticals is estimated at US$ 730 bn (comprising US$ 680 bn prescription drugs and US$ 50 bn generic drugs) and is growing at about 5%. Indian Pharmaceuticals market is estimated at US$ 22 bn (including sales out of India) and is growing at about 8%. There are around 20 major companies which dominate the world marketplace in prescription drugs space with share of about 67% and around 8 companies in generic drugs space with share of about 70%.

The main user industry, namely, Healthcare, is growing well because of the increasing awareness about diseases and health. The Company along with Atul Bioscience will participate in this growth by i) debottlenecking | adding capacities, ii) introducing new products, iii) significantly improving efficiencies and iv) widening its market reach. It will also form long-term alliances with other companies.

Prices of many products come down significantly in a short time. Fluctuations in foreign exchange will impact sales realisations.

Segment: Performance and Other Chemicals

	2011-12	2010-11	% change
Sales (Rs Millions)	11570.000	10160.000	140.000
Share in total revenues (%)	66	67	(1)

AROMATICS

Products

p-Cresol, Others

Aromatics Business mainly comprises p-Cresol and its downstream products. The products are mainly used by customers belonging to Flavour and Fragrance and Personal Care industries. The Business comprises 29 products.

During the year, sales increased by 34% to Rs. 2520.000 Millions. Sales in India increased by 38% to Rs. 800.000 Millions. Export sales increased by 32% to Rs. 172 Millions and formed 68% of the total. Growth on accounted of volume was 14%. The Company undertook capacity expansion of p-Cresol.

World market of p-Cresol is estimated at 55,000 mt and is growing at about 3%. Though earlier the product used to be manufactured in the UK and the USA, China and India are now the major suppliers of the product.

The main user industries, namely, Flavour and Fragrance and Personal Care, are growing well because of the increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) expanding capacities, ii) introducing new products, iii) improving efficiencies and iv) widening its market reach.

The prices of key raw materials which are derived from crude oil fluctuate almost monthly whereas the customers in the user industries expect the prices of the finished products to remain firm for a quarter or even more; on such occasions, it is possible to get affected adversely. Fluctuations in foreign exchange will impact sales realisations.

BULK CHEMICALS

Products

Sodium Hydroxide, Chlorine, Sulphuric Acid, Oleum, Sulphur Trioxide, Chlorosulphonic Acid, Resorcinol, Others

Bulk Chemicals Business mainly comprises Sodium Hydroxide, Chlorine, Sulphuric Acid, Oleum, Sulphur Trioxide, Chlorosulphonic Acid and Resorcinol. Barring Chlorosulphonic Acid and Resorcinol, the rest of the products are used for captive consumption. Resorcinol is mainly used by customers belonging to Tyre industry. The Business comprises 22 products.

During the year, (external) sales increased by 11% to Rs. 720.000 Millions. Sales in India increased by 26% to Rs. 580.000 Millions. Export sales decreased by 26% to Rs. 140.000 Millions and formed 19% of the total. Growth on account of volume was 2%.

World market for bulk chemicals is growing at about 0.5% and Indian market is growing at about 2%. World market for Resorcinol is estimated at US$ 295 mn and is growing at about 3%; Indian market for the product is estimated at US$ 13 mn and is growing at about 5%.

The captive consumption of bulk chemicals is expected to grow as the Company expands manufacturing capacities of its various products. Tyre industry is expected to grow further because of increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) increasing and modernising capacities of the bulk chemicals, ii) increasing efficiency and capacity of Resorcinol, iii) introducing new and downstream products and widening its market reach.

The demand and prices of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange will impact sales realisations.

COLORS

Products

Textile dyes, Textile chemicals, Pigments, Paper dyes, Inks, Others

Colors Business mainly comprises dyes for natural fibres such as Vat, Sulphur Black and Reactive and in a small way high performance pigments. The products are used by customers belonging to Textile and Paint and Coatings industries. The Business comprises about 500 products. M. Dohmen S. A., a JV company, manufactures dyes for synthetic fibres such as speciality Disperse. The products made by M. Dohmen are mainly used by customers (belonging to Textile industry) supplying automotive textiles to Automobile industry. Rudolf Atul Chemicals Limited, a JV company formed during the year, will provide a complete range of textile chemicals where the Business had made a beginning and had a minuscule presence in Indian market

During the year, sales increased by 6% to Rs. 3460.00 Millions. Sales in India increased by 2% to Rs. 1850.000 Millions. Export sales increased by 12% to Rs. 1610.000 Millions and formed 47% of the total. Degrowth on account of volume was 5%.

World market for dyes and textile chemicals is estimated at US$ 11 bn and is growing at about 2% and Indian market is estimated at US$ 800 mn and is growing at about 3%.

China is the largest manufacturer of dyes followed by India. World market for high performance pigments is estimated at US$ 3.5 bn and is growing at about 4%.

The main user industry, namely, Textile, is heavily dependent on the markets of the USA and Europe; due to difficult economic situation in some of these countries, the industry has shown considerably sluggish growth. The growth of domestic Textile industry has been impacted by the closure of textile units in Tirupur and the volatility in cotton prices. Automobile industry is growing well, particularly in India. The Company is trying to overcome downward pressure on prices by i) debottlenecking capacities and thus reducing the cost per unit, ii) introducing new dyes, pigments and textile chemicals, iii) improving efficiencies and iv) widening its market reach, particularly in selected countries in South America, Asia and Africa, with the cooperation of M. Dohmen and Rudolf.

Fluctuations in foreign exchange will impact sales realisations. Treatment costs are expected to remain high given that the manufacture of dyes generates significant pollutants.

POLYMERS

Products

Epoxy Resins and Hardeners, Reactive diluents, Sulphones, Others

Polymers Business mainly comprises Epoxy Resins and Hardeners and formulations thereof, other components such as air release agents, reactive diluents, rheological modifiers, wetting agents, etc and Sulphones. These products are used by Aerospace, Automobile, Construction, Defence, Electronics, Footwear, Handicraft, Marine, Paint and Coatings, Paper and Wind Energy industries. The group comprises of about 90 products and 240 formulations.

During the year, sales increased by 11% to Rs. 4870.000 Millions. Sales in India increased by 11% to Rs. 3450.000 Millions. Brand sales which is currently only in India increased by 43% to Rs. 76 Millions. Export sales increased by 11% to Rs. 1420.000 Millions and formed 29% of the total. Growth on account of volume was 5%. The Company signed a joint venture Agreement with Elkay Kimyasal Maddeler San. Ve Tic. A.S., a reputed manufacturer of stone care chemicals; these will have an excellent fitment with the product portfolio of the Company. Two debottlenecking projects already under implementation will be completed during 2012-13.

World market for Epoxy Resins and Hardeners is estimated at US$ 6 bn and is growing at about 2% and Indian market is estimated at US$ 210 mn and is growing at about 10%. There are about 7 major companies which dominate the world marketplace. The two key raw materials, namely Bisphenol-A and Epichlorohydrin, are imported into India. World market for Sulphones is estimated at US$ 300 mn and is growing at about 4%.

The user industries, Automobile, Construction and Paint and Coatings, are growing well, particularly in India. The Company will participate in this growth by i) significantly debottlenecking capacities of Epoxy Resins and Hardeners, ii) introducing new products and formulations, iii) improving efficiencies and iv) widening its market reach.

Cheaper imports of Epoxy Resins and Hardeners will keep the contribution margins under pressure. Since the two main raw materials are imported, fluctuations in foreign exchange will impact margins.

CONTINGENT LIABILITIES

(Rs. In Millions)

(i) Claims against the Company not acknowledged as debts	31.03.2012	31.03.2011
in respects of:
(a) Excise	62.500	57.300
(b) Income tax	277.000	255.000
(c) Sales tax	7.400	7.400
(d) Customs	27.800	-
(e) Water charges	686.300	655.000
(f) Others	132.600	110.000
Note: Future cash outflows in respect of (a) to (f) above are determinable on receipt of judgements | decisions pending with various forums | authorities.
(ii) Guarantees given by bankers of the Company:
(a) Guarantees have been given by the bankers of the Company in the normal course of business and are not expected to result in any liability on the Company	-	95.000
(b) Corporate guarantee to a bank on behalf of subsidiary company for facilities availed by them	11.100	12.100

FIXED ASSETS:

Tangible assets

· Land – Freehold

· Buildings

· Roads

· Plant and Equipment

· Railway Siding

· Office Equipment and Furniture

· Vehicles

Intangible assets

· Computer software

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER | HALF YEAR ENDED SEPTEMBER 30, 2012

(Rs. In Millions)

Particulars		For the quarter ended on		Six months ended on
		September 30, 2012	June 30, 2012	September 30, 2012
		Unaudited	Unaudited	Unaudited
1	Income from operations
	a Net sales | income from operations (Net of excise duty)	5371.300	4955.900	10327.200
	b Other operating income	63.300	63.900	127.200
	Total income from operations (net)	5434.600	5019.800	10454.400
2	Expenses
	a Cost of materials consumed	3150.900	3189.100	6340.000
	b Purchases of stock-in-trade	77.700	48.600	126.300
	c Changes in inventories of finished goods, work-in-progress and stock-in-trade	(134.200)	(366.400)	(500.600)
	d Employee benefit expenses	311.500	320.800	632.300
	e Depreciation and amortisation expenses	121.000	110.800	231.800
	f Power, fuel and water	582.800	513.000	1095.800
	g Other expenses	622.800	638.700	1261.500
	Total expenses	4732.500	4454.600	9187.100
3	Profit from operations before other income, finance costs and exceptional items (1-2)	702.100	565.200	1267.300
4	Other income	56.800	31.400	88.200
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	758.900	596.600	1355.500
6	Finance costs (see note 2)	59.600	111.700	171.300
7	Profit from ordinary activities after finance costs but before exchange rate difference and exceptional items (5-6)	699.300	484.900	1184.200
8	Exchange rate difference: gain | (loss)	(83.400)	56.200	(27.200)
9	Profit after finance costs and exchange rate difference but before exceptional items (7+8)	615.900	541.100	1157.000
10	Exceptional items
	Reversal of provision for diminution in value of long term investment in a subsidiary company	-	-	-
	Reversal of previous year finance costs (see note 2)	53.800	-	53.800
	Total	53.800	-	53.800
11	Profit from ordinary activities before tax (9+10)	669.700	541.100	1210.800
12	Tax expense
	a Current tax	178.600	166.500	345.100
	b Deferred tax	4.100	(0.200)	3.900
	Total tax (a+b)	182.700	166.300	349.000
13	Net Profit from ordinary activities after tax (11-12)	487.000	374.800	861.800
14	Tax adjustment in respect of earlier years	-	-	-
15	Net Profit for the period (13+14)	487.000	374.800	861.800
16	Paid-up equity share capital (face value T 10 per share)	296.600	296.600	296.600
17	Reserves excluding revaluation reserves
18	Earnings per share (EPS)
	Basic and diluted EPS (T per share)	16.41	12.64	29.05
A	Particulars of shareholding
1	Public shareholding
	Number of shares	14735798	14767185	14735798
	Percentage of shareholding	49.68%	49.78%	49.68%
2	Promoters and promoter group Shareholding

Particulars		For the quarter ended on		Six months ended on
		September 30, 2012	June 30, 2012		September 30, 2012
		Unaudited	Unaudited		Unaudited
	a) Pledged | encumbered:
	Number of shares	-	-		-
	Percentage of shares (as a % of the total shareholding of promoters and promoter group)	-	-		-
	Percentage of shares (as a % of the total share capital of the Company)	-	-		-
	b) Non-encumbered:
	Number of shares	14925935	14894548		14925,935
	Percentage of shares (as a % of the total shareholding of promoters and promoter group)	100.00%	100.00%		100.00%
	Percentage of shares (as a % of the total share capital of the Company)	50.32%	50.22%		50.32%
B	Investor complaints	For the quarter ended September 30, 2012
	Pending at the beginning of the quarter	-
	Received during the quarter	7
	Disposed of during the quarter	7
	Remaining unresolved at the end of the quarter	-

Notes:

1 The above results have been reviewed and recommended for adoption by the Audit Committee and have been approved by the Board of Directors at its meeting held on October 19, 2012. The report of the Statutory Auditors contains no qualification.

2 Pursuant to the clarification regarding applicability of Para 6 of Accounting Standard (AS) 11 and Para 4 (e) of AS 16 vide circular number 25/2012 dated August 9, 2012 from Ministry of Commercial Affairs, finance costs amounting to Rs.53.800 Millions, debited to the Statement of Profit and Loss during the previous financial year, have been added to the cost of fixed assets in current period. Further for current period an amount of Rs.27.800 Millions, has been added to the cost of fixed assets. As a result of this change, depreciation for the current period is higher by Rs.4.000 Millions and finance cost is lower by Rs.27.800 Millions, with corresponding consequential impact on profit for the period.

3 Gujarat Pollution Control Board (GPCB) had issued a notice to shutdown manufacturing operations at Valsad site which was intimated by the Company to the Stock Exchanges on October 11, 2012. Based on the steps taken and the undertaking given by the Company, GPCB vide its letter dated October 17, 2012 has permitted to restart manufacturing operations. The foregoing is not expected to have any significant long term impact on the operations | profitability of the Company.

4 Figures of the earlier periods have been regrouped | recast | reclassified wherever necessary including in the segment result.

5 The unaudited 'Statement of assets and liabilities' and 'Segment revenue, results and capital employed' are annexed.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

	Particulars	As at
		September 30, 2012
		Unaudited
A	Equity and Liabilities
1	Shareholders' funds
	a Share capital	296.800
	b Reserves and surplus	6981.900
		7278.700
2	Non-current liabilities
	a Long-term borrowings	1180.200
	b Deferred tax liabilities (net)	227.000
	c Long-term provisions	34.700
		1441.900
3	Current liabilities
	a Short-term borrowings	2391.000
	b Trade payables	3097.000
	c Other current liabilities	1017.600
	d Short-term provisions	430.700
		6936.300
	Total - Equity and Liabilities	15656.900
B	Assets
1	Non-current assets
	a Fixed assets	4956.400
	b Non-current investments	1249.600
	c Long-term loans and advances	237.800
	d Other non-current assets	250.800
		6694.600
2	Current assets
	a Inventories	3338.300
	b Trade receivables	4146.000
	c Cash and bank balances	135.200
	d Short-term loans and advances	1262.900
	e Other current assets	79.900
		8962.300
	Total - Assets	15656.900

SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	For the quarter ended on		Six months ended on
	September 30, 2012	June 30, 2012	September 30, 2012
	Unaudited	Unaudited	Unaudited
Segment revenue
Life Science Chemicals	1818.900	1533.000	3351.900
Performance & Other Chemicals	3992.000	3782.500	7774.500
Total	5810.900	5315.500	11126.400
Less:
Inter segment revenue	439.600	359.600	799.200
Sales	5371.300	4955.900	10327.200
Segment results
Life Science Chemicals	461.900	345.600	807.500
Performance & Other Chemicals	317.200	257.600	574.800
Total	779.100	603.200	1382.300
Less:
Interest	59.600	111.700	171.300
Other unallocable expenditure	39.400	53.600	93.000
Add:
Exchange rate difference - gain | ( loss)	(83.400)	56.200	(27.200)
Unallocable income	73.000	47.000	120.000
Total Profit Before Tax	669.700	541.100	1210.800
Capital employed
(Segment assets - Segment liabilities)
Life Science Chemicals	3001.800	2929.500	3008.400
Performance & Other Chemicals	5579.000	5329.100	5579.000
Unallocable	2572.900	2418.500	2572.900
Total	11153.700	10677.100	11160.300

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 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.54.20
UK Pound	1	Rs.87.00
Euro	1	Rs.70.22

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		63

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

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