MIRA INFORM REPORT

Report Date :

17.03.2012

IDENTIFICATION DETAILS

Name :	GARWARE WALL ROPES LIMITED
Registered Office :	Plot No. 11, Block D-1 MIDC, Chinchwad, Pune-411019, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.1976
Com. Reg. No.:	11-018939
Paid up Capital :	Rs.237.084 Millions
CIN No.: [Company Identification No.]	L25209MH1976PLC018939
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08397E MUMG08396D
PAN No.: [Permanent Account No.]	AAACG1377P
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturer and Exporter of Synthetic Cordage and Netting.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 9300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. General financial position is good. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The company can be considered for normal 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 – 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 1 :	Plot No. 11, Block D-1 MIDC, Chinchwad, Pune-411019, Maharashtra, India
Tel. No.:	91-20-30780000/30780195
Fax No.:	91-20-30780350
E-Mail :	sales@garwareropes.com secretarial@garwareropes.com
Factory 2 :	Plot No. C-1 and B-226/227, MIDC, Wai, District Satara-412803, Maharashtra, India
Tel No.:	91-2167-308301/02
Factory 3 :	Plot No. 75, 80, 81 and 86, Danudyog Sahakari Sangh Limited, Piparia, Amli-396230
Tel No.:	91-260-2640867
Mumbai Office 1 :	Chowpaty Chambers, Sandhurst Bridge, Mumbai-400007, Maharashtra, India
Tel No.:	91-22-23631388
Mumbai Office 2 :	39, S.K. Hafizuddin Marg, Byculla, Mumbai-400008, Maharashtra, India
Tel No.:	91-22-23091164/68
Foreign Branch Office :	Narrows Reach Business Centre, 6102, North 9^th Street, Unit # 500, Tacoma, WA 98406, USA

DIRECTORS

As on 31.03.2011

Name :	Mr. Ramesh B. Garware
Designation :	Chairman cum Managing Director
Address :	Garware Farm, NDA Road, Khadakwasla, Pune-411023, Maharashtra, India
Date of Birth/Age :	14.10.1940
Date of Appointment :	01.11.2006
Name :	Mr. Shripad M. Kuvelker
Designation :	Vice Chairman
Address :	111-B, Paradise Apartment, 44 Nepean Sea Road, Mumbai-400036, Maharashtra, India
Date of Birth/Age :	15.02.1935
Date of Appointment :	29.06.1977
Name :	Mr. Vinayak B Lele
Designation :	Director
Address :	15 Longford St, Roseville NSW-2069, Australia
Date of Birth/Age :	05.01.1946
Date of Appointment :	25.05.1993
Name :	Mr. Ramesh M Telang
Designation :	Director
Address :	122/2 Om Radha Kunj, Opposite Kamla Nehru Park, Pune-411004, Maharashtra, India
Date of Birth/Age :	04.04.1942
Date of Appointment :	01.07.1989
Name :	Mr. Suresh N Talwar
Designation :	Director
Address :	10 Shiv Shanti Bhuvan, 146 Maharshi Karve Road, Churchgate Reclamation, Mumbai-400020, Maharashtra, India
Date of Birth/Age :	21.11.1937
Date of Appointment :	04.09.2010
Name :	Mr. Vayu R Garware
Designation :	Director
Address :	Ramesh Garware Farm, NDA Road, P.B. No. 3, Khadakwasla, Pune-411023, Maharashtra, India
Date of Birth/Age :	18.02.1972
Date of Appointment :	01.12.1995
Name :	Mr. Shrikant P Kulkarni
Designation :	Director
Address :	44 Vijaynagar Colony, Pune-411030, Maharashtra, India
Date of Birth/Age :	14.08.1949
Date of Appointment :	21.07.2007
Name :	Ms. Diya Garware Ibanez
Designation :	Director
Address :	Ramesh Garware Farm, NDA Road, P.B. No. 3, Khadakwasla, Pune-411023, Maharashtra, India
Date of Birth/Age :	25.09.1970
Date of Appointment :	25.01.2008

KEY EXECUTIVES

Name :	Mr. Anil S Wagle
Designation :	Secretary
Address :	Gananjay Co-Operative Society, Anand Building, Plot 19, Flat 2/3, Azadnagar, Kothrud Pune-411038, Maharashtra, India
Date of Birth/Age :	09.07.1952
Date of Appointment :	01.11.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,445,374	6.10
Bodies Corporate	9,596,637	40.48
Sub Total	11,042,011	46.57
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11,042,011	46.57
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11,300	0.05
Financial Institutions / Banks	1,914	0.01
Insurance Companies	1,221,988	5.15
Foreign Institutional Investors	908,000	3.83
Sub Total	2,143,202	9.04
(2) Non-Institutions
Bodies Corporate	1,378,173	5.81
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	5,520,441	23.28
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2,476,090	10.44
Any Others (Specify)	1,148,433	4.84
Non Resident Indians	150,433	0.63
Trusts	998,000	4.21
Sub Total	10,523,137	44.39
Total Public shareholding (B)	12,666,339	53.43
Total (A)+(B)	23,708,350	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)	23,708,350	-

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Synthetic Cordage and Netting.

Products :

Product Description	Item Code
Ropes and Twine	5607.49
PPMF Yarn	5402.59
Fishnets	5608.11

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity *	Actual Production **
Twines, Ropes and Yarns	MT	31680	26440
Nettings	MT	8724	7461
Woven Fabric	MT	400	826
Metal Gabions	MT	5400	998
Machineries and Parts	Nos.	NA	# 18

NOTE:

· * The figures for installed capacities are as certified by the whole time director and being a technical matter, have not been verified by the auditors.

· ** The actual production includes production needed for other products/ division and processed through job works.

· # Machinery production includes 17 machines produced for captive consumption.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India

· Bank of Baroda

· Bank of Maharashtra

· Royal Bank of Scotland NV

· HDFC Bank Limited

· IDBI Bank Limited

· Citi Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Citi Bank Rupee Loan Repayable within one year Rs.31.496 millions [Secured by way of hypothecation of the whole of the plant and machinery, including its moveable plant and machinery, machinery spares, tools and accessories, both present and future on first charge pari passu basis]	62.992	94.488
IDBI Bank Term Loan under TUFS Repayable within over year Rs.21.080 millions [Secured by an exclusive charge on specific assets financed by the bank]	68.510	89.590
Short Term Loans from the Consortium Banks	0.000	0.000
Cash Credit, Rupee Loan and Rupee Packing Credit	921.607	516.244
Packing Credit in Foreign Currency Loan [The above short term loans form consortium bankers, viz. Bank of India, Bank of Baroda, Bank of Maharashtra, IDBI Bank, HDFC Bank and The Royal Bank of Scotland NV are secured by a first charge pari passu inter by way of hypothecation of the company’s current assets, viz. raw materials, stocks in process, semi finished goods, finished goods, stores and spares not relating to plant and machinery, bills receivable and book debts and other movable (except for plant and machinery secured by way of second charge) both present and future except loans from IDBI Bank and HDFC Bank, the other loans from remaining consortium bankers are also secured to the extent of Rs.830.000 millions by second charge over the company’s immovable properties by way of equitable mortgage, ranking pari passu inter se.]	111.450	164.895
Total	1164.559	865.217

Banking Relations :	--
Auditors :
Name :	Patki and Soman Chartered Accountant
Address :	639 Sadashiv Peth, Kumthekar Road, Pune-411030, Maharashtra, India
Solicitors and Advocates:
Name :	Talwar Thakore and Associates
Associates :	· Garware Elastomerics Limited · Garware Bestretch Limited · Garware Enviromental Services Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions
10000000	Unclassified Shares	Rs.10/- each	Rs.100.000 Millions
	Total		Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23708350	Equity Shares	Rs.10/- each	Rs.237.084 Millions

NOTE: Of the above 7024100 equity shares are allotted as fully paid bonus shares by capitalization of general reserve and share premium.

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		237.084	237.083	237.083
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2110.429	1935.096	1810.741
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2347.513	2172.179	2047.824
LOAN FUNDS
1] Secured Loans		1164.559	865.217	1057.411
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1164.559	865.217	1057.411
DEFERRED TAX LIABILITIES		177.696	172.278	158.405
TOTAL		3689.768	3209.674	3263.640
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1557.500	1441.174	1239.057
Capital work-in-progress		0.000	0.000	88.181
INVESTMENT		87.467	169.760	176.297
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1376.661	938.298	840.858
	Sundry Debtors	1341.981	1264.933	1164.928
	Cash & Bank Balances	20.820	56.097	33.046
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	908.359	912.302	890.573
Total Current Assets		3647.821	3171.630	2929.405
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	482.989	603.113	330.736
	Other Current Liabilities	775.937	687.604	608.905
	Provisions	344.094	282.173	229.659
Total Current Liabilities		1603.020	1572.890	1169.300
Net Current Assets		2044.801	1598.740	1760.105
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3689.768	3209.674	3263.640

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4989.462	4487.268	4374.501
		Other Income	23.699	27.531	29.892
		TOTAL (A)	5013.161	4514.799	4404.393
Less	EXPENSES
		Manufacturing, Trading and Other Expenses	4463.483	4017.702	3963.517
		TOTAL (B)	4463.483	4017.702	3963.517
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		549.678	497.097	440.876
Less	FINANCIAL EXPENSES (D)		89.158	107.445	129.284
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		460.520	389.652	311.592
Less/ Add	DEPRECIATION/ AMORTISATION (F)		148.398	129.242	123.017
	PROFIT BEFORE TAX (E-F) (G)		312.122	260.410	188.575
Less	TAX (H)		67.795	66.606	26.584
	PROFIT AFTER TAX (G-H) (I)		244.327	193.804	161.991
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		888.091	783.033	706.586
Less	APPROPRIATIONS
		Transfer to General Reserve	24.500	19.400	16.200
		Dividend	59.271	59.271	59.271
		Tax on Dividend	9.617	10.073	10.073
	BALANCE CARRIED TO THE B/S		1039.030	888.093	783.033
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1778.450	1452.230	1441.598
	IMPORTS
		Raw Materials	632.694	709.477	563.040
		Traded Goods, Stores, Spares, etc	141.585	128.402	137.857
		Capital Goods	30.032	6.555	28.858
	TOTAL IMPORTS		804.311	844.434	729.755
	Earnings Per Share (Rs.)		10.31	8.17	6.92

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	1416.250	1389.250	1404.060
Total Expenditure	1270.220	1243.550	1264.940
PBIDT (Excl OI)	146.030	145.700	139.120
Other Income	0.220	0.600	4.210
Operating Profit	146.250	146.3000	143.330
Interest	30.370	30.200	36.000
PBDT	115.880	116.100	107.330
Depreciation	38.640	38.400	39.960
Profit Before Tax	77.240	77.700	67.370
Tax	18.840	21.460	24.030
Profit After Tax	58.400	56.240	43.340
Net Profit	58.400	56.240	43.340

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.87	4.29	3.68
Net Profit Margin (PBT/Sales)	(%)	6.25	5.80	4.31
Return on Total Assets (PBT/Total Assets}	(%)	6.00	5.66	4.52
Return on Investment (ROI) (PBT/Networth)		0.13	0.12	0.09
Debt Equity Ratio (Total Liability/Networth)		1.18	1.12	1.09
Current Ratio (Current Asset/Current Liability)		2.27	2.02	2.50

LOCAL AGENCY FURTHER INFORMATION

2010-2011 THE YEAR:

The Company recorded a turnover of Rs. 5013.000 millions for the year ended 31st March, 2011, as against Rs. 4517.000 millions in the previous year. Domestic Sales stood at Rs. 3146.400 millions. Export Sales rose to Rs. 1866.600 millions, achieving year-on-year growth of 22.5%. This rise in exports is attributable to the continuation of successful implementation of the Company's marketing strategy aimed at demand creation, with focus on value-added new products, tapping new markets, addition of new customers, etc.

Despite the trend of rising oil prices over the year, resulting in increased raw material cost, the Company earned Net Profit after Tax of Rs. 244.300 millions as compared to Rs. 193.800 millions in the previous year, with year-on-year growth of 26%.

JOINT VENTURE:

The Company plans to enter into environmental services business, allied to the Company's geo technical business. Towards this end, the Company and Waste Management Pacific Pty Limited, Australia, (WMP), (a wholly owned subsidiary of Transpacific Industries Group Limited, Australia) have entered into Joint Venture Agreement inter-alia providing equity share capital holding, in the ratio of 50:50, in the Garware Environmental Services Private Company (GESPL). The Company and WMP have invested in the equity capital of the GESPL accordingly. GESPL is yet to start its commercial operations.

Management Discussion and Analysis

Overview of Company
 
The flagship company of the RBG Group, Subject. Subject is one of the India-based manufacturers and marketers of technical textiles. The Company manufactures a variety of high-density polyethylene (HDPE) and nylon nets, polypropylene ropes and geosynthetic materials for use in fishing, agriculture, infrastructure, transportation, sports, defence and other application areas. Continuously expanding its product range, the Company has developed several pathbreaking products.

Subject customer and user base is geographically and sectorally widespread. The Company`s users include fishermen, farmers, shipping companies, ports, transporters, associations, construction companies, governments, municipalities, defence establishments, co-operatives and manufacturing plants. For each customer and user type, the Company provides application- specific, high quality and value adding solutions. Customers are serviced directly and through an expanding network of distributors and dealers in India and overseas. The Company has a branch and warehouse in the US.
 
The largest Indian manufacturer of HDPE fishnets, twines and ropes, GWRL holds a dominant share of the domestic market for these products in the mechanised fishing segment. These products also enjoy good demand in overseas markets.

Subject main export markets are USA and Europe and export revenues contribute approximately 40% of the total revenues.

While Subject products for the fishing industry historically accounted for the major part of its revenue, the Company has, through application-focused innovation, established and expanded its presence in other sectors. In recent years, the major part of GWRL`s sales growth has come from new product lines and value-added products.
 
Business Environment in FY 2010-11:
 
The impact of a global financial crisis was considerably reduced in FY20I0- 11, with stimulus packages and other measures showing encouraging results in the developed world, especially in some European countries. The earlier situation of subdued demand changed for the better and demand picked up globally, resulting in a robust order book position for the Company. As discussed later, the Company could successfully tackle the challenge of frequent fluctuations in prices of raw materials.

The Indian economy continued to grow at a healthy pace. GDP grew by 8.6%, with good growth in sectors like manufacturing, construction, transportation, real estate, trade, communication, and a revival in the 
agriculture sector.
 
The domestic fishery industry witnessed modest growth. Growth in mechanised trawling, which uses HDPE fishnets, was also moderate. Globally, growth in the fishing industry is seen mainly in the aquaculture sector, for which the Company has started providing customised cages. Due to outbreak of a virus, export of salmon from Chile continued to be affected. This encouraged salmon-farmers in North America and Europe to step up their efforts. GWRL could benefit from this development.
 
Company`s Performance in FY 2010-11:
 
Subject registered a turnover of Rs. 5013.000 millions for the year ended 31st March, 2011, an increase of 11 % over the previous year`s turnover. Export sales accounted for 37% of the total sales. Compared to the previous year, export sales rose by 22.5%. Noteworthy growth was achieved in the Norway and Canada markets. Profit after tax in the year under review was Rs.244.300 millions, an increase of 26% over the previous year.
 
Profitability was enhanced in the face of severe volatility in prices of raw materials, which fluctuated quite frequently during the year. The situation was tackled through a dual strategy of hedging to offset the risk of adverse price movements, and passing on some cost increases to customers.
 
Higher profit realisation was achieved particularly through increased exports and growth in sales of products for industrial and sports applications. By expanding its network of supply chain partners, the Company could reach out to a larger number of customers, geographies and business segments. In the sport nets business, the Company added new customers and garnered a larger share of demand from existing customers. In infrastructure applications, the company enhanced its presence as a specialist provider of geosynthetic-based solutions.
 
In the global fishing industry, Subject succeeded in getting a major breakthrough into the north Europe market for large purse seines. Recently, the company has started manufacturing Plateena brand ropes and nets made from Dyneema fibre, which is as strong as steel but with only one-sixth the weight. In FY 2010-11, the Company executed orders for Plateena products in various part of the world, including Russia.

Key Financial Indicators
 
· The operating profit ratio of the Company is 5.75%
 
· The current ratio of the Company is 1.38
 
· The Company has a debt-equity ratio of 1. 18

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER AND NINE MONTHS ENDED 31T DECEMBER, 2011

Rs. Millions

PARTICULAR	QUARTER ENDED		NINE MONTHS ENDED
	30.09.2011	31.12.2011	31.12.2011
(a) Net Sales / Income from operations	1383.094	1397.738	4190.538
(b) Other Operating Income	6.160	6.319	19.022
Total Income	1389.254	1404.057	4209.560
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(82.019)	(3.575)	(180.272)
b) Consumption of raw materials	595.526	581.715	1805.137
c) Purchase of traded goods	51.475	38.282	164.403
d) Employees cost	205.466	193.822	592.695
e) Depreciation	38.398	39.956	116.992
f) Other expenditure	473.101	454.704	1396.756
Total	1281.947	1304.904	3895.711
Profit from operations before other income, interest and exceptional Items	107.307	99.153	313.849
Other income	0.597	4.212	5.026
Profit before interest and exceptional Items	107.904	103.365	318.875
Interest	30.202	35.995	96.564
Profit after Interest but before Exceptional Items	77.702	67.370	222.311
Exceptional Items	0.000	0.000	0.000
Profit (+)/Loss(-) from Ordinary Activities before tax	77.702	67.370	222.311
Tax expense	21.460	24.026	64.326
Net Profit (+)/Loss(-) from Ordinary Activities after tax	56.242	43.344	157.985
Extraordinary items	0.000	0.000	0.000
Net Profit (+) / Loss (-) for the year period	56.242	43.344	157.985
Paid up equity share capital (Face value of Rs.10/- per share)	237.084	237.084	237.084
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--	--	--
Earning per share (EPS)
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	2.37	1.83	6.66
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	2.37	1.83	6.66
Public shareholding
Number of shares	12666339	12666339	12666339
Percentage of shareholding	53.43	53.43	53.43
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	Nil	Nil	Nil
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	Nil	Nil	Nil
Percentage of shares (as a % of total share capital of the company)	Nil	Nil	Nil
b) Non Encumbered
Number of shares	11042011	11042011	11042011
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00	100.00
Percentage of shares (as a % of total share capital of the company)	46.57	46.57	46.57
SEGMENT REVENUE
Synthetic Cordage	1186.895	1104.703	3419.616
Fibre and Industrial Products and Projects	253.867	303.577	891.911
Total	1440.762	1408.280	4311.527
Less: Inter-Segment Revenue	57.668	10.542	120.989
Net Sales / Income From Operations	1383.094	1397.738
Segments Results (Profit / Loss before tax and interest from each segment)
Synthetic Cordage	132.516	114.396	368.267
Fibre and Industrial Products and Projects	9.117	29.439	59.653
Total	141.633	143.835	427.920
Less:
Interest	30.202	35.995	96.564
Other unallocable expenditure net off unallocable income	33.729	40.470	109.045
Total profit before tax	77.702	67.370	222.311
Capital Employed (Segment Assets – Segment Liabilities)
Synthetic Cordage	2603.420	2377.207	2377.207
Fibre and Industrial Products and Projects	1072.517	1059.208	1059.208
Total	3675.937	3436.415	3436.415

NOTE:

The figures of previous periods have been regrouped wherever necessary.

1. Provision for taxation for the nine months ended on 31^st December, 2011 Rs.64.326 millions is arrived at being Rs.57.800 millions for income tax, Rs.0.453 million for wealth tax and deferred tax liability Rs.6.073 millions (provision for taxation for the nine months ended on 31^st December, 2010 Rs.46.009 millions was arrived at being Rs.43.700 millions for income tax, Rs.0.400 million for wealth tax and deferred tax liability Rs.1.909 millions)

2. Garware Environmental Services Private Limited (“JV Company”) is yet to commence its commercial operations.

3. The above results were reviewed by the auditors and also by the audit committee and have been taken on record and approved by the board of directors at its meeting held on Friday, 3^rd February, 2012.

4. During the quarter no investor compliant was received. There were no investor complaints pending for redressal as on 1^st October, 2011.

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Relations

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Computer Software

· Product Development

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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.