MIRA INFORM REPORT

Report Date :

17.12.2013

IDENTIFICATION DETAILS

Name :	GUJARAT FLUOROCHEMICALS LIMITED
Registered Office :	Survey No 16/3, 26 and 27 Ranjitnagar, Ghoghamba Taluka, Panchmahal - 389380, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.02.1987
Com. Reg. No.:	04-009362
Capital Investment / Paid-up Capital :	Rs.109.850 Millions
CIN No.: [Company Identification No.]	L24110GJ1987PLC009362
TAN No.: [Tax Deduction & Collection Account No.]	BRDG01210G
PAN No.: [Permanent Account No.]	AAACG6725H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Refrigeration Gases, Anhydrous Hydrochloric Acid, Caustic Soda, Chlorine, Chloromethanes, Poly Tetrafluoroethylene (PTFE), Post Treated Poly Tetrafluorethylene (PTPTFE) and revenue from carbon credits.
No. of Employees :	1260 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (68)

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 99000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is well-established company having fine track record. There appears slight dip in profit of the company during the financial year 2013. However, the rating reflect GFL’s strong business risk profile supported by its highly integrated operation in the chemicals, wind turbine manufacturing and power generation business and strong liquidity and comfortable financial risk profile. Directors are reported to be experienced and respectable businessmen. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA- (Long Term Rating)
Rating Explanation	High degree at safety and very low credit risk.
Date	03.07.2013

Rating Agency Name	CRISIL
Rating	A1+ (Short Term Rating)
Rating Explanation	Very strong degree at safety and lowest credit risk.
Date	03.07.2013

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.

INFORMATION DENIED

Management Non Cooperative. (91-265-6198111)

LOCATIONS

Registered Office / Factory 1 :	Survey No 16/3, 26 And 27 Ranjitnagar, Ghoghamba Taluka, Panchmahal – 389380, Gujarat, India
Tel. No.:	91-2678-248153
Fax No.:	91-2641-256072
E-Mail :	inoflon@gfl.co.in bvdesai@gfl.co.in
Website :	www.gfl.co.in
Corporate Office :	ABS Towers, 2^nd Floor, Old Padra Road, Vadodara - 390 007, Gujarat, India
Factory 2 :	Dahej Project Plot No 12A, GIDC Dahej Industrial Estate, Taluka vagra District, Bharuch, Gujarat, India
Regional Offices:	INOX Towers, Plot No. 17, Sector 16-A, Noida – 201301, Uttar Pradesh, India.
Tel. No.:	91-120-6149600
Fax No.:	91-120-6149610
Marketing Office :	Western Region INOX APL, A/2, TTC Industrial area, Off Thane Belapur Road, Pawane MIDC, Navi Mumbai – 400 710
Tel. No.:	91-22-3294 4123
Fax No.:	91-22-2767 2458
Marketing Office :	Southern Region 3C, III Floor, Ram Mansion, No. 68, Panthan Road, Eqmore, Chennai - 600 008.
Tel. No.:	91-44-2819 2373
Fax No.:	91-44-2819 2374
Branch Office :	Flat No 68, Jolly Maker Chambers No 2, Near Bajaj Bhavan, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22 - 22041860
Fax No.:	91-22-22855675 / 22025588

DIRECTORS

As on: 31.03.2013

Name :	Mr. D.K. Jain
Designation :	Director
Date of Birth/Age :	02.03.1929
Date of Appointment :	01.01.1988
Name :	Mr. Shailendre D Swarup
Designation :	Director
Date of Birth/Age :	20.11.1944
Date of Appointment :	01.01.1988
Name :	Mr. Pavan Jain
Designation :	Director
Name :	Mr. Vivek Jain
Designation :	Managing Director
Date of Birth/Age :	30.08.1955
Date of Appointment :	04.02.1987
Name :	Mr. Dinesh Kumar Sachdeva
Designation :	Whole-Time Director
Date of Birth/Age :	12.12.1944
Date of Appointment :	29.11.1996
Name :	Mr. Jitendra Singh Bedi
Designation :	Whole-Time Director
Date of Birth/Age :	13.08.1953
Date of Appointment :	31.10.2006
Name :	Mr. Om Prakash. Lohia
Designation :	Director
Name :	Dr. S. Rama lyer
Designation :	Director
Name :	Mr. Deepak Asher
Designation :	Director and Group Head Corporate Finance
Name :	Mr. S.P. Jain
Designation :	Director

KEY EXECUTIVES

Name :	Mr. B.V. Desai
Designation :	Company Secretary
AUDIT COMMITTEE :
Name :	Mr. D.K. Jain
Designation :	Director
Name :	Mr. S.P. Jain
Designation :	Director
Name :	Mr. Shailendre D Swarup
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	170400	0.16
Bodies Corporate	76756415	69.87
Sub Total	76926815	70.03
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	76926815	70.03
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2012730	1.83
Financial Institutions / Banks	39398	0.04
Central Government / State Government(s)	1000	0.00
Foreign Institutional Investors	2230778	2.03
Any Others (Specify)	2000	0.00
Foreign Companies	2000	0.00
Sub Total	4285906	3.90
(2) Non-Institutions
Bodies Corporate	11883307	10.82
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	9175678	8.35
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6110164	5.56
Any Others (Specify)	1468130	1.34
Clearing Members	696171	0.63
Non Resident Indians	745959	0.68
Trusts	26000	0.02
Sub Total	28637279	26.07
Total Public shareholding (B)	32923185	29.97
Total (A)+(B)	109850000	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)	109850000	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl.No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Inox Leasing and Finance Limited	2,86,55,150	26.09
2	Inox Leasing and Finance Limited	2,86,55,150	26.09
3	Inox Chemicals Private Limited	25,00,000	2.28
4	Siddhapavan Trading and Finance Private Limited	23,76,440	2.16
5	Devansh Trading and Finance Private Limited	23,51,260	2.14
6	Devansh Trading and Finance Private Limited	23,11,100	2.10
7	Devansh Trading and Finance Private Limited	20,00,000	1.82
8	Siddhapavan Trading and Finance Private Limited	20,00,000	1.82
9	Hotz Industries Limited	17,27,815	1.57
10	Siddho Mal Investment Private Limited	15,50,000	1.41
11	Siddhapavan Trading and Finance Private Limited	12,00,000	1.09
12	Siddho Mal Investment Private Limited	4,69,260	0.43
13	Inox Chemicals Private Limited	4,55,230	0.41
14	Inox Leasing and Finance Limited	4,05,010	0.37
15	Hotz Industries Limited	1,00,000	0.09
16	Pavan Kumar Jain	20,100	0.02
17	Vivek Kumar Jain	20,100	0.02
18	Sita Devi Jain	40,100	0.04
19	Siddharth Jain	20,000	0.02
20	Devendra Kumar Jain	20,100	0.02
21	Devansh Jain	10,000	0.01
22	Hem Kumari	10,000	0.01
23	Kapoor Chand Jain	10,000	0.01
24	Nandita Jain	10,000	0.01
25	Nayantara Jain	10,000	0.01
	Total	7,69,26,815	70.03

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl.No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Roopchand Bhanshali	1897643	1.73
2	Reliance Cap Trustee Co	2000000	1.82
3	Reliance Life Insurance Co	1589350	1.45
	Total	5486993	4.99

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Refrigeration Gases, Anhydrous Hydrochloric Acid, Caustic Soda, Chlorine, Chloromethanes, Poly Tetrafluoroethylene (PTFE), Post Treated Poly Tetrafluorethylene (PTPTFE) and revenue from carbon credits.

GENERAL INFORMATION

No. of Employees :

1260 (Approximately)

Bankers :

· Canara Bank

· ICICI Bank Limited

· The Royal Bank of Scotland

· HDFC Bank Limited

· DBS Bank Ltd.

· Citibank N.A.

· BNP Paribas

· Yes Bank Limited

· Axis Bank Limited

· ING Vysya Bank Limited

· Societe Generale

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
From Banks - Foreign Currency Loans	3344.258	3938.188
SHORT TERM BORROWINGS
From Banks Cash Credit/Overdraft	442.982	301.461
Packing credit /Buyers credit - Foreign Currency Loans	159.057	541.047
Total	3946.297	4780.696

Banking Relations :	--
Auditors :
Name :	Patankar and Associates Chartered Accountants
Holding Company:	Inox Leasing and Finance Limited
Subsidiary Companies:	· Inox Leisure Limited · Inox Infrastructure Private Limited · Inox Motion Pictures Limited · Inox Wind Limited · Gujarat Fluorochemicals Americas LLC, U.S.A. (GFL Americas LLC) · Inox Renewables Limited · Inox Renewables Jaisalmer Limited- Subsidiary of Inox Renewables Limited (Incorporated on 24th July 2012) · Inox Wind Infrastructure Limited- Subsidiary of Inox Wind Limited (Incorporated on 11th May 2012) · GFL Singapore Pte Limited (Incorporated on 25th July 2011) · GFL GM Fluorspar SA (Incorporated on 16th August 2011 and a subsidiary upto 28th September 2011 and subsequently a subsidiary of GFL Singapore Pte Limited)
amalgamated with Inox Leisure Limited w.e.f. 1st April 2012 :	· Fame India Limited (Subsidiary of Inox Leisure Limited) · Fame Motion Pictures Limited (formerly Shringar Films Limited) (Subsidiary of Fame India Limited) · Big Pictures Hospitality Services Private Limited (Subsidiary of Fame India Limited) · Headstrong Films Private Limited ((Subsidiary of Fame India Limited w.e.f. 27th March 2012)
Joint Venture:	· Xuancheng Hengyuan Chemical Technology Co. Limited (XHCT Co. Limited) · Swarnim Gujarat Fluorspar Private Limited (Incorporated on 19th June, 2012)
Other Related Parties:	· Devansh Gases Private Limited · Devansh Trading and Finance Private Limited · Inox India Limited · Inox Air Products Limited · Inox Chemicals Private Limited · Refron Valves Limited · Rajni Farms Private Limited · Sidhapavan Trading and Finance Private Limited · Siddho Mal Investments Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20,00,00,000	Equity Shares	Rs.1/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,98,50,000	Equity Shares	Rs.1/- each	Rs.109.850 Millions

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Re 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any.

During the financial year 2012-13 the Company has paid interim dividend of Rs. 1.50 per equity share (previous year Rs. 2 per equity share). Further, final dividend of Rs. 2 per equity share (previous year Rs. 1.50 per equity share) is proposed to be distributed to the equity shareholders. The total distribution of dividend to the equity shareholders for the year is Rs. 3.50 per share (previous year Rs. 3.50 per share).

Shares held by holding company

Particulars	Nos.	Rs. (In Millions)
Inox Leasing and Finance Limited	5,77,15,310	57.715
	(5,77,15,310)	(57.715)

Details of shareholders holding more than 5% shares in the company

Particulars	Nos.	holding %
Inox Leasing and Finance Limited	5,77,15,310	52.54%
	(5,77,15,310)	(52.54%)
Devansh Trading and Finance Private Limited	66,62,360	6.06%
	(66,62,360)	(6.06%)
Siddhapavan Trading and Finance Private Limited	55,76,440	5.08%
	(55,76,440)	(5.08%)

Details of shares bought back in the immediately preceding five years

59,30,000 Equity shares were bought back in the Financial Year 2008-09

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	109.850	109.850	109.850
(b) Reserves & Surplus	24842.715	21307.826	17362.270
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	24952.565	21417.676	17472.12
(3) Non-Current Liabilities
(a) long-term borrowings	3344.258	3938.188	2066.548
(b) Deferred tax liabilities (Net)	1583.153	1306.773	1336.468
(c) Other long term liabilities	20.520	20.520	952.057
(d) long-term provisions	71.918	62.116	50.878
Total Non-current Liabilities (3)	5019.849	5327.597	4405.951
(4) Current Liabilities
(a) Short term borrowings	4562.007	3690.862	3141.762
(b) Trade payables	1022.937	1209.207	1340.477
(c) Other current liabilities	1407.506	2557.181	2531.745
(d) Short-term provisions	304.288	387.915	344.877
Total Current Liabilities (4)	7296.738	7845.165	7358.861
TOTAL	37269.152	34590.438	29236.932
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16052.628	16045.213	12618.366
(ii) Intangible Assets	195.421	223.147	61.196
(iii) Capital work-in-progress	3909.915	2534.002	3305.954
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2690.758	2882.066	3507.664
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3930.510	3617.160	2285.572
(e) Other Non-current assets	0.053	0.000	0.000
Total Non-Current Assets	26779.285	25301.588	21778.752
(2) Current assets
(a) Current investments	2050.000	50.001	2200.782
(b) Inventories	4211.120	4144.017	1805.130
(c) Trade receivables	3320.136	2478.331	1755.906
(d) Cash and cash equivalents	192.586	2113.404	187.639
(e) Short-term loans and advances	567.043	487.895	1176.907
(f) Other current assets	148.982	15.202	331.816
Total Current Assets	10489.867	9288.850	7458.180
TOTAL	37269.152	34590.438	29236.932

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	15960.809	20689.961	9828.512
		Other Income	569.038	576.395	995.256
		TOTAL (A)	16529.847	21266.356	10823.768
Less	EXPENSES
		Cost of materials consumed	3034.728	2523.534	2121.616
		Purchases of Stock-in-trade	20.956	53.001	51.403
		Changes in inventories of finished goods, work-in-progress and Stock-in-trade	(750.826)	(942.965)	396.615
		Employee benefits expense	745.333	665.284	556.307
		Other expenses	5887.970	7606.515	3507.092
		TOTAL (B)	8938.161	9905.369	6633.033
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7591.686	11360.987	4190.735
Less	FINANCIAL EXPENSES (D)		689.460	571.300	298.716
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6902.226	10789.687	3892.019
Less/ Add	DEPRECIATION/ AMORTISATION (F)		963.827	778.159	448.624
	PROFIT BEFORE TAX (E-F) (G)		5938.399	10011.528	3443.395
Less	TAX (H)		1954.966	5695.563	807.114
	PROFIT AFTER TAX (G-H) (I)		3983.433	4315.965	2636.281
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		37.403	18.284	29.274
Less	APPROPRIATIONS
		General Reserve	3500.000	3850.000	2200.000
		Interim Dividend	219.700	219.700	109.850
		Proposed Dividend	164.775	164.775	274.625
		Tax on Dividend	64.069	62.371	62.796
	BALANCE CARRIED TO THE B/S		72.292	37.403	18.284
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods calculated on FOB basis	7967.493	14601.509	6051.624
		Dividend	21.676	7.844	0.000
		Other Income-Other recoveries on exports	937.995	60.969	40.343
	TOTAL EARNINGS		8927.164	14670.322	6091.967
	IMPORTS
		Raw Materials	1215.626	2458.442	1449.435
		Fuel	533.771	603.418	450.389
		Traded goods	15.768	28.061	0.000
		Components and Spare Parts	146.837	114.408	78.540
		Capital goods (Including capital work in progress)	391.217	332.903	1109.453
	TOTAL IMPORTS		2303.219	3537.232	3087.817
	Earnings Per Share (Rs.)
	Basic		36.22	68.55	--
	Diluted		36.26	39.29	24.00

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013
	1^st Quarter	2^nd Quarter
Net Sales	2542.900	2634.200
Total Expenditure	2233.800	2141.000
PBIDT (Excl OI)	309.100	493.200
Other Income	357.800	167.500
Operating Profit	666.900	660.700
Interest	147.500	146.000
Exceptional Items	0.000	0.000
PBDT	519.400	514.700
Depreciation	249.300	255.500
Profit Before Tax	270.100	259.200
Tax	33.000	03.500
Provisions and contingencies	0.000	0.000
Profit After Tax	237.100	255.700
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	237.100	255.700

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	24.10	20.29	24.36
Net Profit Margin (PBT/Sales)	(%)	37.21	48.39	35.03
Return on Total Assets (PBT/Total Assets}	(%)	19.36	34.32	15.36
Return on Investment (ROI) (PBT/Networth)		0.24	0.47	0.20
Debt Equity Ratio (Total Debt /Networth)		0.32	0.36	0.30
Current Ratio (Current Asset/Current Liability)		1.44	1.18	1.01

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF CURRENT MATURITIES OF LONG-TERM DEBT

(Rs. in Millions)

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term debt	757.966	882.679	1536.894

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	Yes
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. 84 of 2013

Status : PENDING CCIN No : 001092201300084

Next Listing Date: 17/12/2013

Coram :

· HONOURABLE MR.JUSTICE M.R. SHAH

· HONOURABLE MR.JUSTICE R.P.DHOLARIA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX I	MR KM PARIKH for: Appellant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1 1	GUJARAT FLUOROCHEMICALS LIMITED GUJARAT FLUROCHEMICALS LIMITED	NOTICE NOT RECD BACK for :Opponent(s)  1 NOTICE SERVED for :Opponent(s)  1 MR KM PARIKH for :Opponent(s)  1 MR B S SOPARKAR for :Opponent(s)  1

Presented On	: 03/12/2012	Registered On	: 18/01/2013
Bench Category	: DIVISION BENCH	District	: VADODARA
Case Originated From	: THROUGH ADVOCATE	Listed	: 21 times
StageName	: NOTICE RETURNABLE MATTERS

Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	INCOME-TAX ACT, 1961

Other Forums

S.No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	ITA/2460/AHD/2004	INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH	VICE PRESIDENT AND ACCOUNTANT MEMBER	06/07/2012	VADODARA

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	03/12/2012	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	20	MR KM PARIKH:1
2	03/12/2012	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for RESPONDENT(s)  1 , 1	20	MR KM PARIKH:1
3	28/12/2012	CERTIFIED COPY	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	6	MR KM PARIKH:1
4	28/12/2012	CERTIFIED COPY	MR KM PARIKH ADVOCATE for RESPONDENT(s)  1 , 1	6	MR KM PARIKH:1
5	01/07/2013	APPEARANCE NOTE	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	0	MR KM PARIKH(575), for P:1
6	01/07/2013	CERTIFIED COPY	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	6	MR KM PARIKH(575), for P:1
7	01/07/2013	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	20	MR KM PARIKH(575), for P:1
8	22/08/2013	VAKALATNAMA	MR B S SOPARKAR ADVOCATE for RESPONDENT(s)  1	5	MR B S SOPARKAR(6851) for R:1

Linked Matters

S. No.	CaseDetail	Status Name	Disposal Date	Action/Coram
1	TAX APPEAL/651/2013	PENDING	-	- HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MR.JUSTICE R.P.DHOLARIA

Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	21/03/2013	7	43	OFFICE OBJECTION REMOVED	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
2	10/04/2013	7	80	ADMISSION (FRESH MATTERS)	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
3	29/04/2013	7	54	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
4	07/05/2013	7	20	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
5	11/06/2013	5	20	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
6	18/06/2013	5	26	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
7	02/07/2013	5	23	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
8	15/07/2013	5	19	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
9	16/07/2013	5	9	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
10	23/07/2013	5	22	ADJOURNED MATTERS	FIXED NOTICE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
11	26/08/2013	5	51	NOTICE RETURNABLE MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
12	10/09/2013	5	43	NOTICE RETURNABLE MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
13	08/10/2013	5	38	NOTICE RETURNABLE MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
14	22/10/2013	5	47	NOTICE RETURNABLE MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI
15	25/11/2013	5	37	NOTICE RETURNABLE MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE R.P.DHOLARIA
16	02/12/2013	5	65	NOTICE RETURNABLE MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MR.JUSTICE R.P.DHOLARIA
17	17/12/2013	5	65	NOTICE RETURNABLE MATTERS	undefined	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MR.JUSTICE R.P.DHOLARIA

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgment/Order
1	TAX APPEAL/84/2013	HONOURABLE MR.JUSTICE M.R. SHAH  HONOURABLE MS JUSTICE SONIA GOKANI	23/07/2013	N	ORDER

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWINGS
From Banks Cash Credit/Overdraft	1206.015	0.000
Packing credit /Buyers credit - Rupee Loan	1250.000	500.000
Packing credit /Buyers credit - Foreign Currency Loans	1503.953	2348.354
Total	3959.968	2848.354

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

PTFE / Chemicals Business

Industry structure and developments

Total global PTFE market is around 1,50,000 TPA, of which 60% is granular and 40% is dispersion and aqueous

grades. The market is growing at a CAGR of 3-4%. Demand is expected to get a boost due to increased usage in the architectural and household applications. In terms of supply, the industry is dominated by two kinds of players – long time, high quality big players from developed countries, who command around 50% market share, and new

players from developing countries who have around 50% market share.

The Company has entered the PTFE business in 2008, and in a short span of time, become a significant player in the global market. The Company is perceived as a high quality PTFE supplier. With the present capacity of about 16,000 tpa, the company caters to a significant share of the global market, putting it in the bracket of the top 3-4 PTFE suppliers globally. The Company has also introduced in the market various grades of dispersion fine powders and aqueous PTFE. Consistent with its commitment towards the environment, the Company has introduced Dispersion PTFE grades manufactured by using environment friendly surfactant technology. The Company has also inveted to upgrade the PTFE manufacturing facility to a higher engineering class in order to be able to manufacture contamination free products. Indian market for PTFE is around 3000 - 3500tpa, and growing at a healthy 7 – 8% per annum. The Company has around 70% market share in India, being the only significant producer in the country. There is an immense latent potential for higher PTFE demand and the Company is working with Indian PTFE processors to develop new products and applications to spur higher growth and demand in the domestic market.

Globally, the established players are moving to higher value added polymers, leaving the space in the traditional PTFE markets for players like the Company. The Company also plans to enter the segment of higher value added fluoropolymers and fluoroelastomers in the near future. During the year, thanks to its product quality and better service delivery, the Company has been able to enhance its market penetration and added several new international large-scale customers.

The Company enjoys a significant competitive advantage, because of its integrated operations. It is amongst the

top 2 or 3 fully integrated players, giving it significant cost competiveness amongst other global players. The

Company has placed enormous emphasis on high and consistent quality of all PTFE grades matching the best in the business, by continuous operations and process improvements. The Company has adopted marketing strategies to be proximate with customers and provide value added services such as office and warehousing facilities in the US and EU markets, and technical services to drive value for customers.

Segment-wise product-wise performance

Caustic Soda accounts for around 18% of the Company’s sales in value terms. Caustic soda sales increased from last financial year by 23% in volume terms and by 56% in value terms.

Chloromethane account for around 12% of the Company’s sales in value terms. Chloromethane sales, though increased by 32% in volume terms compared to last year, dropped by around 7% in value terms, largely due to lower price realisations.

PTFE accounts for around 25% of the Company’s sales in value terms. PTFE sales recorded decrease by 20 % in volume terms and 40% in value terms.

Around 19% of the Company’s PTFE sales last financial year came from the domestic market and more than 81% of PTFE sales came from the export markets. The Company witnessed a 48% fall in its PTFE exports.

A bulk of the Company’s PTFE sales, more than 81%, comes from granular PTFE (including modified granular) with dispersion PTFE accounting for 19%. Granular PTFE sales decreased by around 20%, whereas dispersion PTFE grew 9 fold last year.

While PTFE sales last year in volume and value terms have been depressed due to sluggish global economies

especially in Europe and US and consequent fall in demand for PTFE too. The shortage situation during the previous year had led to panic purchases and consequently high inventories at most international customers who curtailed their off-takes during the current year. This also had a severe adverse impact on the PTFE prices. The Company expects that the growth momentum in PTFE sales will pick up during this coming financial year.

Outlook

PTFE has been witnessing a steady growth rate of 3-4 % over the past several years globally. The last three years have witnessed significant volatility in the global PTFE market. While 2010-11 witnessed PTFE shortages leading to buoyant prices, during 2011-12 the demand was sluggish and this lead to falling prices. During 2012-13 as well, demand continued to remain sluggish and prices, after sliding in the initial few months, stabilised towards the end of the year. Established players are moving away from PTFE into other fluoropolymers. This creates space in the market for the Company to aspire and become the preferred supplier of PTFE.

With the introduction of dispersion and aqueous grades of PTFE in the product mix and growth in the modified and compounding businesses, the Company expects the value addition in the PTFE business to increase further.

The Company is, in addition to being the largest PTFE producer in the country, also the largest producer of chloromethane, and a significant player in the caustic soda business in India.

The Company is also seriously considering other products in the fluoropolymer, fluoroelastomers and speciality fluorochemicals segments, and would take investment decisions in these areas shortly, after a complete evaluation of the market, technologies and economics. This would provide an avenue of growth in the near future.

CORPORATE INFORMATION

The Company is a public limited company engaged in the business of manufacturing and trading of Refrigeration Gases, Anhydrous Hydrochloric Acid, Caustic Soda, Chlorine, Chloromethanes, Poly Tetrafluoroethylene (PTFE), Post Treated Poly Tetrafluorethylene (PTPTFE) and revenue from carbon credits. The Company caters to both domestic and international markets. The shares of the Company are listed on Bombay Stock Exchange and National Stock Exchange of India. The Company is a subsidiary of Inox Leasing and Finance Limited.

UNAUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30.09.2013

Rs. In Millions

Particulars	3 months ended 30.09.2013	Preceding 3 months ended 30.06.2013	6 Month ended 31/03/2013
	(unaudited)	(unaudited)	(Unaudited)
CONTINUING OPERATIONS
Income from operations
a) Net Sales / Income from operations (net of excise duty)	2618.800	2525.900	5144.700
b) Other Operating Income	25.400	17.000	32.400
Total Income from operations (net)	2634.200	2542.900	5177.100
Expenses
a) Cost of materials consumed	739.300	711.300	1450.600
b) Purchases of stock-in-trade	0.000	1.000	1.000
c)Changes in inventories of finished goods, work-in-progress and stock-in-trade	(25.700)	169.500	143.800
d) Employee benefits expense	199.600	194.400	394.000
e) Power and fuel	690.900	700.300	1391.200
f) Foreign Exchange Fluctuation (Gain)/Loss (net)	28.700	(77.800)	(49.100)
g) Depreciation and amortization expense	255.500	249.300	504.800
h) Other expenses	508.200	457.300	965.500
k) Total Expenses (a to j)	2396.500	2405.300	4801.800
Profit from operations before other income, finance costs & exceptional items (1-2)	237.700	137.600	375.300
Other Income	167.500	280.000	447.500
Profit from ordinary activities before finance costs and exceptional items (3+4)	405.200	417.600	822.800
Finance costs	146.000	147.500	293.500
Profit from ordinary activities after Finance Costs but before exceptional items (5-6)	259.200	270.100	529.300
Exceptional Items	0.000	0.000	0.000
Profit from ordinary activities before tax (7+8)	259.200	270.100	529.300
Tax Expense
a) Current Tax	27.000	59.000	86.000
b) MAT Credit Entitlement	(40.0)	(46.000)	(86.000)
c) Deferred Tax	16.500	20.000	36.500
d) Taxation in respect of earlier years	0.000	0.000	0.000
Total Provision for Taxation (a to d)	3.500	33.000	36.500
Net Profit from ordinary activities	255.700	237.100	492.800
Extraordinary Items (net of tax)	0.000	0.000	0.000
Net Profit for the period from continuing operations (11-12)	255.700	237.100	492.800
DISCONTINUED OPERATIONS
Total (Loss)/Profit before tax	0.000	0.000	0.000
Tax Expense	0.000	0.000	0.000
Net (Loss)/profit from discontinued operations	0.000	0.000	0.000
Net Profit for the period (13+16)	255.700	2371	10341
Paid-up Equity Share Capital (Face value of Re 1 each)	109.900	1099	1099
Reserves excluding revaluation reserves
Basic and Diluted Earnings per share (Continuing Operations) (Rs) (Face value of Re 1 each) - Not annualized	2.33	2.16	4.49
Basic and Diluted Earnings per share (Total Operations) (Rs) (Face value of Re 1 each) - Not annualized	2.33	2.16	4.49
Particulars of Shareholding
Public shareholding
- Number of shares - Percentage of shareholding	32923185 29.97%	32923185 29.97%	32923185 29.97%
Promoters and promoter group Shareholding a) Pledged/Encumbered- Number of shares	Nil	Nil	Nil
- Percentage of shares (as a percentage of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
- Percentage of shares (as a percentage of the total share capital of the company)	Nil	Nil	Nil
b) Non-encumbered - Number of shares	76926815	76926815	76926815
- Percentage of shares (as a percentage of the total shareholding of promoter and promoter group)	100.00%	100.00%	100.00%
- Percentage of shares (as a percentage of the total share capital of the company)	70.03%	70.03%	70.03%
Investor Complaints
Pending at the beginning of the quarter	Nil
Received during the quarter	4
Disposed off during the quarter	4
Remaining un resolved at the end of the quarter	Nil

AUDITED STATEMENT OF ASSETS AND LIABILITIES AT 31st MARCH, 2013

Rs. In Millions

Sr. No.	Particulars	As at 30.09.2013
A)	Equity and Liabilities
1	Shareholders' Funds
	(a) Capital	109.900
	(b) Reserves and Surplus	25335.400
	Sub-total -Shareholders' funds	25445.300
2	Minority Interest
3	Non-current liabilities
	(a) Long-term borrowings	3321.000
	(b) Deferred tax liabilities (net)	1619.600
	(c ) Other long-term liabilities	20.500
	(d) Long-term provisions	74.100
	Sub-total -Non-current liabilities	5035.200
4	Current Liabilities
	(a) Short-term borrowings	3532.000
	(b) Trade payables	893.600
	(c ) Other current liabilities	1188.500
	(d) Short-term provisions	48.100
	Sub-total -Current liabilities	5662.200
	Total- Equity and Liabilities	36142.700
B)	Assets
1	Non-current assets
	(a) Fixed assets	20419.200
	(b) Non-current investments	2737.400
	(c) Long-term loans and advances	3596.900
	Sub-total -Non-current assets	26753.500
2	Current Assets
	(a) Current investments	2256.400
	(b) Inventories	3794.600
	(c) Trade receivables	2513.200
	(d) Cash and cash equivalents	197.300
	(e) Short-term loans and advances	436.000
	(f) Other current assets	191.700
	Sub-total -Current assets	9389.200
	Total-Assets	36142.700

Notes:

1. The above results, reviewed by the Audit Committee, were approved by the Board of Directors at their meeting held on 22nd October, 2013 and have undergone “Limited Review” by the Statutory Auditors.

2. The figures for the previous periods/year have been regrouped/reclassified to make them comparable with those of the current period/year.

3. In terms of Clause 46A of Accounting Standard 11 “The Effects of Changes in Foreign Exchange Rates” inserted by Notification No. G.S.R. 914(E) dated 29th December, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Company has opted, w.e.f. 1st April 2011, to capitalize the exchange differences arising on long term monetary items, in so far they relate to acquisition of depreciable capital assets.

4. The Company operates in a single primary business segment viz. “Chemicals”.

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10435190	27/05/2013	990,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B78903838
2	10406949	31/01/2013	2,835,000,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B69150712
3	10343720	09/03/2012	3,075,000,000.00	ICICI BANK LIMITED	Mezzanine Floor, West Wing, ICICI Bank Limited,,  Landmark, Race Course Circle, Alkapuri,, BARODA, Gujarat - 390007, INDIA	B35639525
4	10334116	08/08/2013 *	1,028,710,650.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B82783432
5	10295326	26/12/2012 *	920,000,000.00	DBS Bank Ltd	Fort House , Third Floor,, 221, Dr DN Road, Fort,  Mumbai, Maharashtra - 400001, INDIA	B65088643
6	10291692	31/01/2013 *	2,835,000,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B69149342
7	10272432	26/02/2011	688,120,000.00	BNP Paribas	20, Collyer Quay, #01-01, Tung Centre, Singapore,  - 049319, SINGAPORE	B08319501
8	10112011	21/06/2008	1,150,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A41780495
9	10112013	21/06/2008	1,150,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A41776097
10	10086531	17/12/2008 *	850,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	A53463055
11	10059189	19/06/2007	850,000,000.00	ABN Amro Bank N. V.	71/72, 7th Floor, Sakhar Bhavan,, Nariman Point,  Mumbai, Maharashtra -400021, INDIA	A18604074
12	10040022	10/03/2007	1,150,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A11863081
13	80009996	31/08/2012 *	700,000,000.00	CANARA BANK	MITTAL TOWER, C WING, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	B58346677
14	80059169	29/03/2010 *	700,000,000.00	CANARA BANK	Mittal Tower, C wing, Nariman Point, Mumbai, Ma  harashtra - 400021, INDIA	A84260181

* Date of charge modification

FIXED ASSETS:

· Buildings

· Plant and Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipments

AS PER WEBSITE DETAILS:

PRESS RELEASES:

GUJARAT FLUOROCHEMICALS TO LIST BREEZE ARM BY FY14

Jun 27, 2013, 04.35 PM IST

Gujarat Fluorochemicals skeleton to list a breeze subsidiary, Inox Wind by FY14. Inox Wind is expected to lift some-more than Rs 800 crore around IPO, reports CNBC-TV18 quoting disdainful sources.

Inox Wind has allocated Axis Cap and Bank of America as lead advisors. Inox Wind contributes 30 percent to income Gujarat Fluorochemicals . However, a association could not be reached for comments.

Must Read: Buy Gujarat Fluorochemicals, says Sukhani

Inox Wind is a entirely integrated actor in a breeze appetite marketplace with state-of-the-art production plants nearby Ahmedabad (Gujarat) for blades and towers and during Una (Himachal Pradesh) for hubs and Nacelles, states a association on a website.

Inox Wind manufactures a pivotal components to safeguard high quality, many modernized technology, trustworthiness and cost competitiveness.

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.62.10
UK Pound	1	Rs.101.27
Euro	1	Rs.85.43

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		68

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.