MIRA INFORM REPORT

Report Date :

09.03.2013

IDENTIFICATION DETAILS

Name :	GUJARAT NARMADA VALLEY FERTILIZERS AND CHEMICALS LIMITED (w.e.f. 10.10.2012)
Formerly Known As :	GUJARAT NARMADA VALLY FERTILIZERS COMPANY LIMITED
Registered Office :	P. O. Narmadanagar, District Bharuch - 392 015, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.05.1976
Com. Reg. No.:	04-002903
Capital Investment / Paid-up Capital :	Rs. 1554.188 Millions
CIN No.: [Company Identification No.]	L24110GJ1976PLC002903
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00702C
PAN No.: [Permanent Account No.]	AAACG8372Q
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Selling of fertilizers viz. urea, ammonium nitro-phosphate and calcium ammonium nitrate, chemicals viz. ammonia, methanol, formic acid, acetic acid, nitric acids and ammonium nitrate melt and electronics viz. digital switching systems and printed circuit boards.
No. of Employees :	3037 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (69)

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 100000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a jointly promoted by the government of Gujarat state Fertilizers and Chemical Limited. It is a well established and reputed company having a good track record. Financially company appears to be strong. Credit worthyness is high. Liquidity position is good. The subject gets good support from its holding companies. 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 for normal 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

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	ICRA
Rating	Commercial Paper = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	February 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 DECLINED BY

Name :	Mr. R. B Panchal
Designation :	Company Secretary
Contact No.:	91-2642-247001
Date :	01.03.2013

LOCATIONS

Registered Office / Head Office / Factory:	P. O. Narmadanagar, District Bharuch - 392 015, Gujarat, India
Tel. No.:	91-2642-247001, 247002 (Head Office Bharuch) 91-2642-663626 (Fertilizers Division / Chemical Division)
Fax No.:	91-2642-247084 / 247057 / 247122 91-2642-247065 (Fertilizers Division / Chemical Division)
E-Mail :	pnanavati@gnvfc.com mntirmak@gnfc.in rbpanchal@gnfc.in rbpanchal@gnfc.in rtbhargava@gnfc.in industrialproducts@gnfc.in
Website :	http://www.gnfc.in

DIRECTORS

As on 22.09.2012

Name :	Mr. Achalkumar Kishor Chand Joti
Designation :	Chairman
Address :	Senior Govt Officers Colony, Bunglow, No.26, Dafnala Shai Baug, Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	23.01.1953
Qualification :	IAS
Date of Appointment :	20.02.2010
DIN No.:	01468434
Name :	Mr. Varesh Sinha
Designation :	Director appointed in casual vacancy
Address :	15-Sumangalam Society, Drive in Road, Near Asia High School, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	06.04.1954
Date of Appointment :	22.09.2012
DIN No.:	03259880
Name :	Mr. Jagatheesa Dharmakkan Pandian
Designation :	Nominee director
Address :	Kh-214, Sector-19, Gandhinagar, - 382019, Gujarat, India
Date of Birth/Age :	11.05.1955
Qualification :	IAS
Date of Appointment :	11.12.2009
DIN No.:	00015443
Name :	Mr. Radhakanta Tripathy
Designation :	Director
Address :	Kalhar Bunglows, No.1, Sector – 3, Shilajgam, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	16.05.1953
Qualification :	IAS
Date of Appointment :	20.10.2010
DIN No.:	01985678
Name :	Mr. Girishchandra Murmu
Designation :	Director
Address :	Plot No.11A, Sector-2, Opposite Swaminarayan Mandir, Ch-Road, Gandhinagar – 382002, Gujarat, India
Date of Birth/Age :	21.11.1959
Qualification :	IAS
Date of Appointment :	20.10.2010
DIN No.:	00183142
Name :	Mr. Atanu Chakraborty
Designation :	Director
Address :	M’S, Bungalow, Fertilizernagar Township, Po. Fertilizernagar, Vadodara – 391750, Gujarat, India
Date of Birth/Age :	05.04.1960
Qualification :	BE ( Electronic and Communication) , Post Graduate Diploma in Business Finance and MBA From U.K
Date of Appointment :	28.07.2011
DIN No.:	01469375
Name :	Mr. Ram Mohan Tiruvallur Thattai
Designation :	Director
Address :	306, IIM Campus, Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	28.01.1956
Qualification :	PHD Economics, Stern School of Business, New York University MBA , Stern School of Business, New York University B Metallurgy, Indian Institute of Technology, Mumbai
Date of Appointment :	31.08.2005
DIN No.:	00008651
Name :	Mr. Divyabhash Chandrakant Anjaria
Designation :	Director
Address :	20, Sanskarbharati Society, Ankur Road, Po. Narayanpur, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	19.07.1946
Qualification :	B.Com and MBA (Finance) from IIM, Ahmedabad
Date of Appointment :	04.01.2006
DIN No.:	00008639
Name :	Mr. Ashok Champaklal Shah
Designation :	Director
Address :	3, Amar Apartment, Opposite Swargashram Tithal Road, Cross lane, Valsad – 396001, Gujarat, India
Date of Birth/Age :	13.03.1949
Qualification :	M.Sc, Ph.D
Date of Appointment :	04.01.2006
DIN No.:	00236555
Name :	Mr. Anandmohan Tiwari
Designation :	Managing director
Address :	MD’ S Bungalow, GNFC Township, Po. Narmadanagar, Bharuch – 392015, Gujarat, India
Date of Birth/Age :	03.06.1959
Qualification :	B.Sc. (Botany, Zoology, Chemistry) and M.Sc. (Zoology) from Banaras Hindu University, Varanasi and MBA in Business Administration from University of Ljubljana, Slovenia
Date of Appointment :	14.07.2011
DIN No.:	02986260

KEY EXECUTIVES

Name :	Mr. Rameshkumar Babardas Panchal
Designation :	Secretary
Address :	A-1, Street No.31, GNFC Township Po. Naramadangar, Bharuch - 392015, Gujarat, India
Date of Birth/Age :	01.06.1956
Date of Appointment :	01.04.1997
Pan No.:	ADZPP8821A
Name :	Mr. J. S Kochar
Designation :	Executive Director
Chief General Managers
Name :	Mr. RT Bhargava
Designation :	Chief Marketing Officer
Name :	Mr. RA Shah
Designation :	Chief Executive Officer
Name :	Mr. AT Patadia
Designation :	Chief General Managers
Name :	Mr. PK Masare
Designation :	Chief General Managers
Name :	Mr. JC Bhatt
Designation :	Chief General Managers

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	64003213	41.21
Sub Total	64003213	41.21
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	64003213	41.21
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5344215	3.44
Financial Institutions / Banks	24696892	15.90
Foreign Institutional Investors	13674935	8.81
Sub Total	43716042	28.15
(2) Non-Institutions
Bodies Corporate	5111552	3.29
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	34899286	22.47
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6714112	4.32
Any Others (Specify)	853338	0.55
Trusts	284454	0.18
C M Pool A/c	41414	0.03
Directors & their Relatives & Friends	3500	0.00
Societies	352614	0.23
Any Other	171356	0.11
Sub Total	47578288	30.64
Total Public shareholding (B)	91294330	58.79
Total (A)+(B)	155297543	100.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Gujarat State Investments Limited	3,32,24,046	21.38	21.38
2	Gujarat State Fertilizers & Chemicals Limited	3,07,79,167	19.80	19.80
	Total	6,40,03,213	41.18	41.18

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	14083612	9.06	9.06
2	Fidelity Puritan Trust - Fidelity low Priced stock Fund	5750000	3.70	3.70
3	General Insurance Corporation of India	4540053	2.92	2.92
4	LIC of India Market Plus -1 Growth Fund	2819127	1.81	1.81
5	The New India Assurance Company Limited	2090613	1.35	1.35
6	Reliance Capital Trustee Co. Ltd - Reliance Long term Equity Fund	2039975	1.31	1.31
	Total	31323380	20.15	20.15

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	14083612	9.06	9.06
	Total	14083612	9.06	9.06

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of fertilizers viz. urea, ammonium nitro-phosphate and calcium ammonium nitrate, chemicals viz. ammonia, methanol, formic acid, acetic acid, nitric acids and ammonium nitrate melt and electronics viz. digital switching systems and printed circuit boards.

Products :

Product Description	Item Code No.
Urea	310210
Ammonium Nitro Phosphate	310230
Acetic Acid	291521

PRODUCTION STATUS (As on 31.03.2011):-

Particulars	Unit	Actual Production
Ammonia	MT	4,74,868
Urea	MT	6,43,228
Methanol - l	MT	39,172
Methanol - ll	MT	1,63,372
MSU	MT	5,266
Formic Acid	MT	19,382
Acetic Acid	MT	1,53,295
WNA	MT	2,84,307
CAN – l	MT	35,870
Can – ll	MT	37,870
ANP	MT	1,66,235
CAN	MT	98,740
Aniline	MT	39,896
TDI	MT	17,710

GENERAL INFORMATION

No. of Employees :

3037 (Approximately)

Bankers :

Bank of Baroda, GNFC Complex Branch, P.O. Narmadanagar, Bharuch – 392015, Gujarat, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Rupee Term Loans From Banks	4938.205	4886.335
Foreign Currency Term Loan From Bank	1763.180	0.000
Loans Payable on Demand - From Other	3803.237	2243.934
Total	10504.622	7130.269
Security details: (i) Rupee term loans from banks are secured by way of first mortgage on all immovable properties, both present and future for which charge is created / to be created and are further secured by way of hypothecation created / to be created on all non-current assets and second charge by way of hypothecation created / to be created on all current assets including stocks and book debts. (ii) Foreign currency term loan from bank is secured by way of first mortgage on all immovable properties, both present and future for which charge is to be created and is further secured by way of hypothecation to be created on all movable fixed assets. (iii) The above charges are ranking pari-passu among the lenders. Repayment details: (i) Rupee term loans from banks of Rs. 5740.000 Millions carries interest @ 11.50% p.a. (floating) payable on monthly basis. The loan is repayable in quarterly installments starting from 30.09.2012 and ending on 30.06.2017. (ii) Rupee term loans from banks of Rs. 930.000 Millions carries interest @ 11.00%~11.25% p.a. (floating) payable on monthly basis. The loan is repayable in quarterly installments starting from 31.12.2013 and ending on 30.09.2021. (iii) Foreign currency term loan from bank carries interest @ 6 month Euribor plus 1.98% payable on half yearly basis. The loan is repayable in half yearly installments starting from 01.10.2014 and ending on 01.04.2020. Short term borrowings from banks as Cash Credit and Overdraft accounts are secured by first charge by way of hypothecation of stocks and book debts and all other movables, both present and future, and further secured by second charge by way of mortgage on all immovable properties. These charges are ranking pari-passu among the working capital lenders

Banking Relations :	--
Auditors :
Name :	RS Patel and Company Chartered Accountant
Address :	Ahmedabad, Gujarat, India
Cost Auditors :
Name :	Diwanji and Associates Chartered Accountant
Address :	Vadodara, Gujarat, India

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.10/- each	Rs.2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
155418783	Equity Shares	Rs.10/- each	Rs.1554.188 Millions

Terms / Rights attached to Equity shares:

The Company has only one class of shares, i.e. equity shares which rank pari passu in all respects. All the equity shares are fully paid up and no restrictions are attached to equity shares.

Details of Shareholders holding more than 5% shares in the Company:

Name of the Shareholder	No. of Shares	% of total Equity Capital
Gujarat State Investments Limited	3,32,24,046	21.38
Gujarat State Fertilizers & Chemicals Limited	3,07,79,167	19.80
Life Insurance Corporation of India	1,40,83,612	9.06

Reconciliation of the number of shares outstanding:

Particular	No. of Shares
Equity Shares at the beginning of the year	15,54,18,783
Add: Equity Shares issued during the year	0
Less: Equity Shares cancelled during the year	0
Equity Shares at the end of the year	15,54,18,783

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		1554.188	1554.188	1554.188
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23520.634	21314.537	19236.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25074.822	22868.725	20790.488
LOAN FUNDS
1] Secured Loans		10504.622	7130.269	2900.053
2] Unsecured Loans		2003.023	2026.404	2650.500
TOTAL BORROWING		12507.645	9156.673	5550.553
DEFERRED TAX LIABILITIES		2211.572	2108.136	2552.632
TOTAL		39794.039	34133.543	28893.673
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16051.546	12129.395	11693.512
Capital work-in-progress		18672.008	13845.921	10298.034
INVESTMENT		975.626	866.278	895.146
DEFERRED TAX ASSETS		0.000	0.000	247.909
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5992.048	4635.324	4050.338
	Sundry Debtors	7786.422	4374.824	166.811
	Cash & Bank Balances	2998.957	1836.811	3233.902
	Other Current Assets	0.151	0.106	0.000
	Loans & Advances	4417.048	4927.217	2538.593
Total Current Assets		21194.626	15774.282	9989.644
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4811.947	2759.788	2275.284
	Other Current Liabilities	10433.235	4054.297	539.423
	Provisions	1854.585	1668.257	1415.865
Total Current Liabilities		17099.767	8482.342	4230.572
Net Current Assets		4094.859	7291.940	5729.072
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		39794.039	34133.534	28893.673

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		38620.067	28458.930	26144.463
		Other Income		300.939	1435.643	862.826
		TOTAL (A)		38921.006	29894.573	27007.289
Less	EXPENSES
		Cost of Materials Consumed		21350.695	15227.789
		Purchases of Stock-in Trade		1493.875	454.958	23405.009
		Employee Benefits Expense		2839.177	2356.263
		Other Expenses		8101.565	7025.096
		Change in Inventories of Finished Goods, Stock-in-Process and Stock-in-Trade		(679.400)	(395.729)
		TOTAL (B)		33105.912	24668.377	23405.009
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)			5815.094	5226.196	3602.28
Less	FINANCIAL EXPENSES (D)			335.855	202.628	233.820
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			5479.239	5023.568	3368.460
Less/ Add	DEPRECIATION/ AMORTISATION (F)			1305.253	1211.123	1169.592
	PROFIT BEFORE TAX (E-F) (G)			4173.986	3812.445	2198.868
Less	TAX (H)			1335.636	1147.113	960.494
	PROFIT AFTER TAX (G-H) (I)			2838.350	2665.332	1238.374
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			5644.090	4565.811	4916.441
Less	APPROPRIATIONS
			Transfer to General Reserve	3000.000	1000.000	1000.000
			Dividend	543.966	505.111	505.111
			Tax on Dividend	88.245	81.942	83.893
	BALANCE CARRIED TO THE B/S			4850.229	5644.090	4565.811
	EARNINGS IN FOREIGN CURRENCY
			Export of goods FOB Basis	86.646	85.978	35.438
			Technical consultancy and other fees	0.980	0.000	23.754
	TOTAL EARNINGS			87.626	85.978	59.192
	IMPORTS
			Raw Materials and fuel	2304.107	1623.896	1563.181
			Spares	366.884	274.657	327.687
			Capital Goods	755.880	1180.663	2343.085
			Finished Goods	0.000	0.000	8.646
	TOTAL IMPORTS			3426.871	3079.216	4242.599
	Earnings / (Loss) Per Share (Rs.)			18.26	17.15	7.97

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	8709.300	11657.700	11192.000
Total Expenditure	7842.600	10205.200	9264.600
PBIDT (Excl OI)	866.700	1452.500	1927.400
Other Income	109.400	94.600	89.900
Operating Profit	976.100	1547.100	2017.300
Interest	135.400	116.500	156.300
Exceptional Items	0.000	0.000	0.000
PBDT	840.700	1430.600	1861.000
Depreciation	357.800	364.000	373.700
Profit Before Tax	482.900	1066.600	1487.300
Tax	155.500	342.800	480.000
Provisions and contingencies	0.000	0.000	0.00
Profit After Tax	327.400	723.800	1007.300
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	327.400	723.800	1007.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.29	8.92	4.59
Net Profit Margin (PBT/Sales)	(%)	10.81	13.40	8.41
Return on Total Assets (PBT/Total Assets}	(%)	11.21	13.66	10.14
Return on Investment (ROI) (PBT/Networth)		0.17	0.17	0.11
Debt Equity Ratio (Total Debt /Networth)		0.50	0.40	0.27
Current Ratio (Current Asset/Current Liability)		1.24	1.86	2.36

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade Payables	4811.947	2759.788	2275.284
Total	4811.947	2759.788	2275.284

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	----------------------
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

YEAR IN RETROSPECT

The company achieved a sales turn-over of Rs.38620.100 Millions compared to Rs.28458.900 Millions in the previous Financial Year, registering an increase of 35.70%. The turnover was higher mainly on account of increased volume of production and increased sales realization. Profit Before Tax was higher at Rs.4174.000 Millions as against Rs.3812.400 Millions of the previous financial year, registering an increase of 9.48%. Profit After Tax was also higher at Rs.2838.400 Millions as against Rs.2665.300 Millions of the previous financial year, registering an increase of 6.49%.

PERFORMANCE REVIEW

The Company has achieved all-round satisfactory performance during the year. Members will be happy to know that during the year, three new plants viz. 300 MTD WNA-II, 150 MTD CNA-III and 33 MW CPSU Plants have been commissioned.

Production

The Company achieved impressive production performance during 2011-12. Most plants of the Company were operated at over 100% capacity utilization. Ammonia Plant produced 5,49,502 MTs of Ammonia with capacity utilization of 123.35%, Urea Plant produced 7,01,572 MTs of Urea with capacity utilization of 110.15%, Formic Acid Plant produced 19,656 MTs of Formic Acid with capacity utilization of 196.56%, Acetic Acid Plant produced 1,56,023 MTs of Acetic Acid with capacity utilization of 156.02%, Weak Nitric Acid (WNA)-I Plant produced 2,83,504 MTs of WNA with capacity utilization of 114.55%, Ammonium Nitrophosphate Plant (ANP) produced 1,96,394 MTs of ANP with capacity utilization of 137.82%, Aniline Plant produced 39,597 MTs of Aniline with capacity utilization of 113.13%, Toulene Di-Isocyanate (TDI) Plant produced 17,727 MTs of TDI with capacity utilization of 126.62%. Production of Acetic Acid, Formic Acid, Methyl Formate and TDI was adjusted to maximize contribution based on availability of Carbon Monoxide. Production of WNA and CNA was planned as per the market condition. Methanol- I and II Plants were not operated at their full capacity and Methanol Synthesis Unit (MSU) was not operated in view of high cost of production of Methanol coupled with its lower sales realization. Production of Calcium Ammonium Nitrate (CAN) was contained to suit the requirement of ANP production / sale of AN Melt. AN Melt being more remunerative, it was sold directly to the extent possible rather than using the same for producing CAN.

Sales

The Company achieved a commendable performance in the sale of Fertilizers and Industrial Chemicals. The Company sold in aggregate 10.85 Lacs MTs of Fertilizers, (both manufactured and traded) during the year. 7.43 Lacs MTs of Fertilizers constituting 69% of the total sales were sold in the primary marketing zone comprising the Home State Gujarat and the adjoining States - Maharashtra, Madhya Pradesh and Rajasthan. The Company continued the trading activities in imported Urea, imported MOP and SSP. In addition to the manufactured Fertilizers, the Company sold 37,021 MTs of imported Urea, 30,873 MTs of imported MOP and 30,456 MTs of SSP.

The chemical market continued its recovery from the Global meltdown. Almost all the Industrial Products performed well in terms of realization during the year. The Company sold in aggregate 8,49,761 MTs of Industrial Products during financial year 2011-12 vis-a-vis 7,84,592 MTs of Industrial Products sold during financial year 2010-11, registering an increase of 8.31%. The Company during financial year 2011-12 exported in aggregate 1310 MTs of Industrial Products registering an increase of 22.19% over the previous year.

DEMERGER OF V-SAT / ISP GATEWAY BUSINESS

Hon’ble High Court of Gujarat has vide its order dated 15th June, 2012 approved the Scheme of Arrangement and Demerger for transfer of V-SAT / ISP Gateway Business of the Company to ING Satcom Limited, an unlisted Company. The Scheme of Arrangement and Demerger will become finally effective upon the transfer of Licenses for V-SAT / ISP Gateway Business by the competent authority to the name of ING Satcom Limited

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Fertilizer industry witnessed lot of turbulence during the year. The Government has decanalised the import of Phosphatic and Potassic (P and K) fertilizers, introduced Nutrient Based Subsidy (NBS) for (P and K) fertilizers, decontrolled the prices of (P and K) fertilizers, levied Excise duty on fertilizers and is ensuring the conversion of Urea units from LSHS based to gas based units. Introduction of NBS on Urea and switching over to transfer the subsidy on fertilizers directly to the retailers may take some more time.

The country continued to import fertilizers to bridge the gap between demand and supply. 6.6 million tonnes Urea, 7.5 million tonnes DAP and 6.4 million tonnes MOP were imported by they country during the year.

Government is making efforts to track fertilizer movement right upto the retailer level through an electronic monitoring system called ‘‘The mobile based Fertilizers Management System’’ (mFMS). The data uploaded and entered by the manufacturers, importers, dealers and retailers will be hosted on a public portal to enable the farmers and other stake holders to get information on availability of different kinds and brands of fertilizers with the dealers and retailers in the supply chain.

Government of India is considering new investment policy for fertilizer industry. Considering manufacturing facilities at India being lower than demand and need of huge imports, the new investment policy is expected to be conducive for promotion of investment in fertilizer. GOI has announced availability of 150% of investment amount in fertilizers as deduction from income.

Due to the inflationary trend in the international prices of fertilizers and the adverse forex changes, prices of PandK fertilizers increased substantially in the domestic market. USD moved from around Rs. 44 to Rs. 51 at the end of FY 2011-12.

News of good monsoon is yet to come this year. This does not augur well for the fertilizer industry. However, Company is geared up for sales with their trained manpower to deal with this situation. The brand image of Company's fertilizers will also help to some extent. Availability of fertilizers is quite comfortable and adequate for the present Kharif season.

The Chemical Industry is among one of the fastest growing sector in India. The bulk of chemicals produced in India comprise either upstream products or intermediates, which go into a variety of manufacturing applications including fertilizers, pharmaceuticals, textiles and plastics, agrochemicals, paints and dyes. Imports of various chemicals are on a rise, as increased/enhanced capacities are not able to cope up with the increasing demand.

The prospects for (n) Code appear bright considering the advances happening in the field of technology and the expenditures being incurred by various organizations and governments on IT. (n) Code has taken several initiatives in product development and technology upgradation.

The Company manufactures and distributes Nitrogenous and Phosphatic fertilizers like Urea, Ammonium Nitro-phosphate (ANP) and Calcium Ammonium Nitrate (CAN) and chemicals like Ammonia, Weak Nitric Acid, Concentrated Nitric Acid, Methanol, Acetic Acid, Formic Acid, Aniline, Toluene Di-Isocyanate (TDI) and provides various services in the area of Information Technology. The Company continues to trade in imported Urea, imported Muriate of Potash (MOP) and Single Super Phosphate (SSP) as well as Chemicals like Acetic Acid and Formic Acid etc.

The Company’s overall performance during the year in terms of the plant operations coupled with marketing and other allied performance has remained smooth and noteworthy which is reflected in its financial performance also. Total 78 new were established out of which 43 records were in production front while 35 were marketing records. Dedicated and committed efforts of the Management for cost reduction in various areas of operations, constant improvements and focus on consolidation resulted in steadfast gains to the Company.

BUSINESS SEGMENT PERFORMANCE:

Fertilizer Business:

Fertilizers business was good throughout the year. However, due to off-season the sales were sluggish in the last two months of the financial year.

Nutrient Based Subsidy (NBS) policy introduced from 1st April, 2010 for P and K fertilizers continues during 2012-13. Company was free to decide the selling price of its product in the market. However, the Company was maintaining its prices at a lower level as compared to other manufacturers for the benefit of the farmers. With deregulation of prices of all fertilizers except Urea, the market has become very competitive.

Government of India is seriously considering introduction of NBS on Urea. This would mean decontrol of pricing of Urea. This would also have a positive financial impact on the Company as the Company will be able to improve the realization of CAN further. The Company is also converting its Ammonia production from LSHS based to NG based which will reduce the cost of Urea production.

Government of India has announced its plans for routing subsidy on fertilizers through the retailers and finally directly to the marginal farmers. As a part of this plan, the Government has launched a mobile based Fertilizer Management System (FMS) and the Company has trained more than 3,000 dealers and retailers for the use of this system. The Company is also uploading the details of all despatches and sales in the system.

Industrial Chemicals Business:

The availability of Methanol for merchant sale had reduced due to cost economics, wherein it was more profitable to produce Ammonia vis-a-vis Methanol. The Company achieved highest ever sales of Formic Acid, TDI, WNA and AN Melt during the year. Sales of CNA, Acetic Acid and Aniline increased during the year.

Export of various Products

Need to give thrust on export has been identified. Exports of various products in the FY 2011-12 were higher than FY 2010-11.

HCL and Methyl-Formate have been exported for the first time.

Information Technology Business:

Infotower :

GNFC Infotower has been developed as a technology park where IT companies are leased space with infrastructure facilities. It provides ambience and interiors at par with international standards to various tenants who provide software, IT enabled services, BPO and Call Center services.

Digital Signature Certificates (DSCs) :

(n)Code issued 7,51,194 DSCs witnessing an unprecedented 300% annual growth. (n)Code is currently market leader in this field in the country. (n)Code has also implemented DSC based solutions for organizations of high repute like IFFCO, Airport Authority of India, GAIL, SAIL, Reliance Industries, IDBI Bank , Adani Group, Torrent, etc.

E-Procurement Services :

During the year 2011-12, 23,449 tenders were completed making (n)Code the leading e-procurement service provider in India. Till now more than 80,000 tenders have been completed. In addition to all the departments of GoG, these services are provided to Mazgaon Docks Limited, Government of Daman and Diu, Dadra and Nagar Haveli, State of Haryana, PSPCL- Punjab, Kandla Port Trust etc.

(n)Code also manages several e-procurement initiatives at the national level for 21 States across India.

Data Centers and Technology Solutions:

(n)Code provides turnkey IT solutions including designing, commissioning and operations of data centers. This year it completed Data Center Projects at Punjab and Bihar and a project at Warangal is under progress. (n)Code also provides data centers services to about 15 Data Centers across the country.

It has undertaken several e-security projects using CCTV and surveillance technologies. The most notable project is providing complete security for Gujarat Pavitra Yatradham Vikas Board at 4 locations. (n)Code has implemented Mineral Administration solution for Gujarat and Karnataka, which has won four national level awards.

Consultancy Services:

(n)Code provides consultancy services for complex technology projects including implementation of homeland security and intelligent traffic monitoring systems. It has completed the ERP implementation at GSFC. It also completed two international projects for a customer in Nigeria and one in Togo in West Africa.

OPERATIONS:

Production performance :

The overall production performance remained very good during the year. 300 MTD WNA-II plant, 150 MTD CNA-III plant and 33 MW CPSU plant were commissioned.

ANP production increased inspite of problems of availability of rock phosphate due to political problems at Jordan. Alternate source was developed to maintain production.

CAN production was planned according to ANP production /sale of AN melt and cost economics.

Due to unfavourable cost economics, Methanol -I and Methanol-II plants could not be operated at their full capacity and Methanol Synthesis Unit (MSU) was not operated.

Production of other products viz. Acetic Acid, Formic Acid, Methyl Formate and TDI were adjusted to maximize contribution based on availability of carbon monoxide.

Concentrated efforts are put during day to day operation for higher productivity and reducing specific energy consumption. Emphasis is put for continual improvement in safety and environment.

OUTLOOK:

Fertilizer Business:

• Finalization of new investment policy of fertilizers will create an opportunity for investment. The Company is considering enhancing Urea production capacity, on announcement of the new favourable policy by Government of India.

• Company is exploring investment opportunities abroad for sourcing Rock phosphate and producing Phosphatic / Nitrogenous fertilizers.

• Brand image of Company’s fertilizers continues to be in the premium segment. This will help consolidate markets in the Primary Marketing Zone in the partial decontrol scenario at present and total decontrol in the future.

• It is estimated that apart from indigenous manufactured fertilizers, about two lac MT of traded fertilizers, mainly Urea, will be handled during 2012- 13. This will increase the turnover and profit of the Company.

• There will be some saving in energy in Urea production by conversion of feedstock from LSHS to Gas.

Chemical Business:

• The Company is the country’s largest manufacturer of Acetic Acid, Methanol, Formic Acid and Aniline. The Company is the only manufacturer of TDI in SAARC countries.

• The Company is the leading manufacturer of various building block chemicals in India. The Company has a significant market share in various chemical products in India.

• Over all, the Chemical market in India is expanding and growing.

• All the chemicals are sold in the domestic market wherein the realization is maximum. Currently, the dependence on export market is minimal. However, with the commissioning of new plants viz. Ethyl-Acetate in September, 2012 and TDI by June,

• 2013, the quantity will be available to tap the export market and country’s import dependence will reduce. Hence, certain quantities would be earmarked for exports consequent upon commissioning of these plants. Exports of TDI and other product is planned to fulfill export obligation under the EPCG scheme. To facilitate the exports, the Company is considering to have overseas offices in Middle-East, Africa and South East Asia.

• The Company being one of the largest domestic supplier, many of its products have developed niche market in prominent consuming areas in various States.

• The Company faces competition mainly from imports, as majority of its products are being imported, especially Acetic Acid, TDI, Formic Acid, Methanol and also products governed by international prices due to OGL.

• The market share of the Company is reducing each year as the production is stagnant due to limitation of capacity. The increased demand is met through imports. In order to retain the market share, strategically the Company has decided to import few chemicals like Acetic Acid and Methanol on regular basis.

Raw materials:

• On the raw material front, all the major Petroleum inputs are being procured on import parity price basis. International prices of Petroleum products have remained range bound in vicinity of their peak level. It is expected that the prices of these products shall remain range bound during the current financial year. The prices of indigenous coal were increased during January, 2012 which were subsequently rolled back. However, due to change in pricing pattern and increase in railway freight, the prices of indigenous coal have increased. Further increase in price of indigenous coal during the year 2012-13 cannot be ruled out due to increased demand from power sector. The price of imported coal may remain stable during the year. The price of

• Rock Phosphate may remain range bound in the year. The price of ammonia is likely to remain firm in the near future. Increase in crude/ fuel oil prices in international market may push prices of LSHS upward. Depreciating rupee will result in higher cost of Imported/ Import Parity raw materials being consumed by the Company.

• Due to shortage of basic raw materials like natural gas and rock phosphate in the country, Company is exploring investment opportunities abroad.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Rs. In Millions

Particular	31.03.2012	31.03.2011
Claims against the Company not ac knowledged as debts (mainly on account of water charges)	322.759	236.966
Claims in respect of employees’ / contract labour matters	Amount not ascertainable
Income tax assessment orders contested	360.928	214.967
Demands in respect of Central Excise Duty, Service Tax and VAT in fertilizers and chemical divisions’ activities and the same as estimated by the Company	302.762	172.421

UNSECURED LOAN

Rs. In Millions

Particular	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Rupee Term Loan From Bank	240.000	400.000
Rupee Term Loan From other	1000.000	0.000
From Others	30.500	30.500
Deposits: Short-Term Deposit from Other	0.000	500.000
Short-Term Loans and Advances from Banks	0.000	700.000
Buyers’ Credit in Foreign Currency from Banks	732.523	395.904
Total	2003.023	2026.404
Unsecured rupee term loan from bank is against assignment of security held by the Company towards outstanding of House Building Advance given to its employees and carries interest @ 11.70 % p.a. (floating) payable on monthly basis. The loan is repayable in quarterly installments starting from 31.12.2009 and ending on 30.9.2014. Unsecured rupee term loan from other of Rs. 5500.000 Millions carries interest @ 9.25 % p.a. (floating) payable on quarterly basis. The loan is repayable in quarterly installments starting from 24.2.2012 and ending on 24.11.2012. Unsecured rupee term loan from other of Rs.1000.000 Millions carries interest @ 9.25% p.a. (floating) payable on quarterly basis. The loan is repayable in quarterly installments starting from 31.12.2013 and ending on 30.09.2015.

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012

Rs. In Millions

Sr. No.	Particulars	3 Months ended 31.12-2012 (Unaudited}	Preceding 3 Month* ended 3049-ZO12 (Unaudited)	Year to date figures for current period ended 31-12-2012 (Unaudited)
1	Income from operation!
	(a) Net Sale/ Income from Operations (Net of excise duty)	11102.000	11667.700	31659.100
	(b) Other Operating Income	0.000	0.000	0.000
	Total Income from operations (Net)	11192.000	11657.700	3,15,59.100
2	Expenses
	(a) Cost of materials consumed	6577.600	6424.500	18208.400
	(b) Purchase of stock-in-trade	135.600	374.500	548.700
	(c) Power, fuel and other utilities	1003.200	1197.800	3221.500
	[d) Change In Inventories of finished goods,
	work- in progress and stock-in-trade	(277.400)	355.200	33.100
	(e) Employee benefits) expenses	624.000	657.600	1969.600
	(f) Depreciation and amortisation expenses	373.700	364.000	1095.500
	(g) Other expenses	1111.600	1192.600	3331.200
	Total expenses	9635.300	1,0569.200	28406.000
3	Profit from operation* before other Income, finance cost* and exceptional Item* (1-2)	1553.700	1068.600	3151.100
4	Other Income	59.900	94.800	293.900
6	Profit from ordinary activities before finance costs and exceptional Items (3+4)	1643.600	1183.100	3445.000
e	Finance costs	156.300	116.500	408.200
7	Profit from ordinary activities after finance costs but before exceptional Items (6-6)	1487.300	1066.600	3036.800
8	Exceptional Items	0.000	0.000	0.000
9	Profit from ordinary activities before tax (7+3)	1487.300	1066.600	3036.800
10	Tax expenses	480.000	342.800	878.300
11	Net Profit from ordinary activities after tax (9-10)	1007.300	723.800	2058.600
12	Extraordinary Items (Net of tax expenses Rs. Nit)	0.000	0.000	0.000
13	Net Profit for the period 111-12)	1007.300	723.800	2058.500
14	Paid up equity share capital (Face value of Rs 10/- per Equity share)	1554.200	1664.200	1564.200
15	Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	_	--	--
16.I	Earnings per share (before extraordinary Items) (of Rs. 10/- each) (not annuallsed)
	(a) Basic (Rs.)	6.48	4.66	13.24
	(b) Diluted (Ra.)	6.48	4.66	13.24
16.ll	Earnings per share (after extraordinary Hems) (of Rs. 10/- each) (not annuallsed)
	(a) Basic (Rs.)	6.48	4.68	13.24
	(b) Diluted (Rs.)	6.48	4,66	13.24
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding'
	- Number of shares	9,12,94,330	9,12,94,330	9,12,94,330
	• Percentage of shareholding	58.74%	5B.74%	58.74%
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	- Number of shares	-	--
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)
	- Percentage of shares (as a % of the total share capital of the Company)
	b) Non - encumbered
	- Number of shares	8,40,03,213	6,40,03,213	8,40,03,213
	- Percentage of shares (as a % of the total shareholding of the Promoter and Promoter Group)	100.00%	100.00%	100.00%
	- Percentage of shares (as a % of the total share capital of the Company)	41.18%	41.18%	41.18%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	0
	Received during the quarter	321
	Disposed off during the quarter	321
	Remaining unresolved at the end of the quarter	0

Notes:

1 The above result* have been reviewed by the Audit Committee In Its meeting held on 28-01-2013 and approved by the Board of Director* in Its meeting held on 29-01-2013.

2 A limited review of the above results has been carried out by the Auditors of the Company.

3 Previous periods' figures have been regrouped wherever necessary.

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Rs. In Millions

Sr. Mo.	Particulars	3 Months ended 31-12-2012	Previous 3 Months ended 30-09-2012	Year to date figures for current period ended 31-12.2012
		(Unaudited)	(Unaudited)	(Unaudited)
1	Segment Revenue :
	A. Fertilizers	6476.600	6943.500	18167.200
	B. Chemicals	4561.300	4502.100	12825.200
	C. Others	154.100	212.100	566.700
	Total	11192.000	1,1657.700	31559.100
	Lass: Inter Segment Revenue	0.000	0.000	0.000
	Net Sales/ Income from Operations	11192.000	1,1657.700	31558.100
2	Segment Results: {Profit before Tax & Finance Cost from each segment}
	A. Fertilizers	744.600	165.200	734.500
	S. Chemicals	947.500	870.200	2372.400
	C. Others	32.700	87.200	223.000
	Total	1624.600	1132.600	3329.900
	Lass: (!) Finance Cost	156.300	116.500	408.200
	(II) Other Unallocable Expenditure	71.000	44.100	146.200
	(III) Unallocable Income	(59.800)	(94.600)	(261.300)
	Total Profit Before Tax	1487.300	1066.600	3036.800
3	Capital Employed: (Segment Assets - Segment Liabilities)
	A. Fertilizers	20758.600	1.7854.300	20758.800
	3. Chemicals	27388.400	2,6367.400	27398.400
	C. Others	3,90.200	359.400	390.200
	D. Unallocated assets/(liabilities) (net)	(21413.900)	(1.7455.100)	(21413.900)
	Total	27133.300	2,6126.000	27133.300

FIXED ASSETS:

• Intangible Assets – Goodwill
• Free Hold Land
• Roads, Culverts and Compound wall
• Buildings
• Plant and machinery
• Intangible assets – Software’s and Licence
• Railway Siding
• Water Supply and Drainage Systems
• Furniture, Fixture and equipment
• Vehicles

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] 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.54.40
UK Pound	1	Rs.81.57
Euro	1	Rs.71.24

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

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.