Business information report

1. Summary Information

		Country	India
Company Name	DEEPAK NITRITE LIMITED	Principal Name 1	Mr. C. K. Mehta
Status	Good	Principal Name 2	Mr. D. C. Mehta
		Registration #	04-001735
Street Address	9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat, India
Established Date	06.06.1970	SIC Code	--
Telephone#	91-265-2351013/ 2334481-82	Business Style 1	Manufacturer
Fax #	91-265-2330994	Business Style 2	--
Homepage	http://www.deepaknitrite.com	Product Name 1	Chemicals
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs. 104,538,190/-	Product Name 3	--
Shareholders	Promoter and Promoter Group - 55.93 % Public - 44.07 %	Banking	State Bank of India
Public Limited Corp.	Yes	Business Period	43 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	A (59)
Related Company
Relation	Country	Company Name	CEO
Associates	--	Blue Shell Investment Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	3,318,010,000	Current Liabilities	1,743,814,000
Inventories	854,363,000	Long-term Liabilities	2,464,497,000
Fixed Assets	1,813,207,000	Other Liabilities	279,486,000
Deferred Assets	0,000	Total Liabilities	4,487,797,000
Invest& other Assets	1,029,992,000	Retained Earnings	2,423,237,000
		Net Worth	2,527,775,000
Total Assets	7,015,572,000	Total Liab. & Equity	7,015,572,000
Total Assets (Previous Year)	4,152,128,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	7,898,919,000	Net Profit	230,828,000
Sales(Previous yr)	6,722,440,000	Net Profit(Prev.yr)	257,971,000

MIRA INFORM REPORT

Report Date :

20.03.2013

IDENTIFICATION DETAILS

Name :	DEEPAK NITRITE LIMITED
Registered Office :	9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.06.1970
Com. Reg. No.:	04-001735
Capital Investment / Paid-up Capital :	Rs. 104.538 millions
CIN No.: [Company Identification No.]	L24110GJ1970PLC001735
TAN No.: [Tax Deduction & Collection Account No.]	PNED03452B
PAN No.: [Permanent Account No.]	AAACD7468A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (59)

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 10000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. Financial positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating: A+
Rating Explanation	Adequate degree of safety and low credit risk
Date	13.03.2012

Rating Agency Name	ICRA
Rating	Short term rating: A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	13.03.2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat, India
Tel. No.:	91-265-2351013/ 2334481-82
Fax No.:	91-265-2330994
E-Mail :	investor@deepaknitrite.com srvaidya@deepaknitrite.com
Website :	http://www.deepaknitrite.com
Corporate Office / Global Head Quarters :	Aaditya-I, National Highway No. 8, Chhani Road, Vadodara - 390024, Gujarat, India
Tel. No.:	91-265-276 5200
Fax No.:	91-265-234 0506
Factory 1 :	Nitrite and Nitroaromatics Division 4-12, GIDC Chemical Complex, Nandesari - Dist., Vadodara - 391340 Gujarat, India
Tel. No.:	91-265-2840639 / 47
Factory 2 :	APL Division Plot Nos. 1, 2, 26 & 27, MIDC Dhatav, Roha, Dist. Raigad - 402116
Tel. No.:	91-2194-263550 / 263750 / 264777 / 78 / 79
Factory 3 :	Taloja Chemical Division Plot No. K-10, MIDC, Taloja, A.V. District Raigad-410208, Maharashtra, India
Tel. No.:	91-22-27411125 / 26 / 27
Factory 4 :	Hyderabad Specialties Division Plot Nos. 90-F/70-A and B, Phase II, Industrial Development Area, Jeedimetla, Taluka Quthbullapur Madal, District Ranga Reddy, Hyderabad – 500055, Andhra Pradesh, India
Tel. No.:	91-40-23097401
Factory 5 :	Project site under development Plot No. 12/B GIDC, Dahej, Dist. Bharuch- 392130, Gujarat, India

DIRECTORS

As on 31.03.2012

Name :	Mr. C. K. Mehta
Designation :	Chairman
Other Directorship:	Deepak Fertilizers and Petrochemicals Corporation Limited Deepak Novochem Technologies Limited Blueshell Investment Private Limited Sofotel Infra Private Limited The Lakaki Works Private Limited Storewell Credits and Capital Private Limited Deepak Asset Reconstruction Private Limited Deepak Medical Foundation Kawat Development Corporation Deepak Research and Development Foundation
Name :	Mr. D. C. Mehta
Designation :	Vice Chairman and Managing Director
Name :	Mr. A. C. Mehta
Designation :	Managing Director
Name :	Mr. M. R. B. Punja
Designation :	Director
Name :	Mr. A. K. Dasgupta
Designation :	Director
Name :	Mr. Hasmukh Shah
Designation :	Director
Name :	Mr. Nimesh Kampani
Designation :	Director
Name :	Mr. Sudhin Choksey
Designation :	Director
Name :	Mr. Berjis Desai
Designation :	Director
Name :	Dr. Richard H. Rupp
Designation :	Director
Name :	Mr. Sudhir Mankad
Designation :	Director
Date of Birth/Age :	64 Years
Qualification :	Masters Degree in History
Other Directorship :	Gujarat International Finance Tec-City Co. Limited Bhavnagar Energy Company Limited IL&FS Education Investment and Technology Services Limited Gruh Finance Limited Shri Dinesh Mills Limited Navin Fluorine International Limited IL&FS Skills Development Corporation Limited Gujarat Gas Company Limited
Name :	Mr. S. K. Anand
Designation :	Additional Director
Date of Birth/Age :	68 years
Qualification :	Bachelor of Engineering (Chemical) Petrochemical Course advance course on Management
Other Directorship :	Sunrise Private Limited Paramount Environment Private Limited SARA Consultants Private Limited

KEY EXECUTIVES

Name :	Mr. Sanjay Upadhyay
Designation :	Sr. Vice President (Finance) and Company Secretary
Audit Committee :
Name :	Mr. M. R. B. Punja
Designation :	Chairman
Name :	Mr. A. K. Dasgupta
Designation :	Member
Name :	Mr. Sudhin Choksey
Designation :	Member
Name :	Mr. Sudhir Mankad -
Designation :	Member
Investors Grievance Committee :
Name :	Mr. A. K. Dasgupta
Designation :	Chairman
Name :	Mr. D. C. Mehta
Designation :	Member
Name :	Mr. A. C. Mehta
Designation :	Member
Remuneration Committee :
Name :	Mr. A. K. Dasgupta
Designation :	Chairman
Name :	Mr. Berjis Desai
Designation :	Member
Name :	Mr. Sudhir Mankad
Designation :	Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2190107	20.95
Bodies Corporate	3657070	34.98
Sub Total	5847177	55.93
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5847177	55.93
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1800	0.02
Financial Institutions / Banks	425	0.00
Insurance Companies	353567	3.38
Foreign Institutional Investors	625000	5.98
Sub Total	980792	9.38
(2) Non-Institutions
Bodies Corporate	815167	7.80
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2267859	21.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	515679	4.93
Any Others (Specify)	27145	0.26
Non Resident Indians	27048	0.26
Trusts	97	0.00
Sub Total	3625850	34.68
Total Public shareholding (B)	4606642	44.07
Total (A)+(B)	10453819	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)	10453819	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals.

Products :

Products Description	Item Code No.
Sodium Nitrite	283410 01
Para Nitrochlorobenzene	290490 05
Resorcinol	290721 00
Para Cumidine	290270

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production Qty. MTS.
Inorganic Salts	MT	44350	48459
Dinitrosopentamethylene Tetramine	MT	1800	551
Dye Intermediates	MT	660	--
Nitro Aromatics	MT	38750	36072
- By Products	MT	--	29101
Aromatics Amines	MT	18000	11447
Agro Chemical Intermediates	MT	9900	9384
Colour Intermediates	MT	6600	7526
- By Products	MT	--	8756

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India
• Bank of Baroda
• Dena Bank
• ICICI Bank Limited
• AXIS Bank Limited
• ING Vysya Bank
• Standard Chartered Bank
• DBS Bank Limited
• Hongkong and Shanghai Banking Corporation

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Foreign Currency Loan from Banks and Financial Institutions	96.317	146.934
External Commercial Borrowings	2022.580	0.000
Cash Credit from Banks	127.829	48.430
Total	2246.726	195.364

Note:

Term Loans

The Term Loan is obtained from Bank of Baroda while External Commercial Borrowings are obtained from (a) Standard Chartered Bank (b) HSBC Bank (Mauritius) Limited and (c) DBS Bank Limited. These are Secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company. Charge in case of DBS Bank Limited is in the process of creation.

Repayment Schedule

a) Rates of Interest for Term Loan and External Commercial Borrowings are based on LIBOR plus agreed spread.

b) Term Loan from Bank of Baroda is repayable in equal half-yearly instalments of Rs. 24.500 millions with the last instalment payable on March 29, 2015.

c) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis starting from August 23, 2013 with a step up repayment schedule with last instalment payable on February 23, 2018.

d) External Commercial Borrowing from HSBC Bank ( Mauritius) Limited is repayable on quarterly basis starting from March 30, 2014 with a step up repayment schedule with last instalment payable on March 29, 2018.

e) External Commercial Borrowing from DBS Bank Limited is repayable on quarterly basis starting from February 3, 2014 with a step up repayment schedule with last instalment payable on November 1, 2018.

f) Deferred Sales Tax Loan is interest free and payable in 8 yearly instalments starting from April, 2008 and last instalment payable before March, 2016.

The instalments payable are as under:

Year	Rs. In Millions
2012-13	6.002
2013-14	4.306
2014-15	2.700
2015-16	0.062

g) Deposits from Shareholders and Public carry interest in the range of 8 to 12 % p.a and are repayable in maximum tenure of 3 years.

Cash Credit from Banks are Secured by a prior charge over Company’s stocks of Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and by second charge on all Fixed Assets by way of hypothecation and mortgage.

Cash Credit is repayable on demand and carries interest @ base rate plus range spread of 2.50% to 4.25% p.a.

Banking Relations :	--
Auditors :
Name :	B.K. Khare and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates :	Blue Shell Investment Private Limited Check Point Credits and Capital Private Limited Crossover Advisors Private Limited Crossover Trustees Private Limited Deepak Asset Reconstruction Private Limited Deepak Cleantech Limited Deepak Fertilisers and Petrochemicals Corporation Limited Deepak International Limited Deepak Medical Foundation Deepak Research and Development Foundation Deepak Novochem Technologies Limited Forex Leafin Private Limited Grey Point Investments Private Limited Hardik Leafin Private Limited Kawant Development Corporation Nucore Capital Management Private Limited Pranawa Leafin Private Limited Prolific Credits and Capital Private Limited Skyrose Finvest Private Limited Sofotel Software Services Private Limited Stepup Credits and Capital Private Limited Stiffen Credits and Capital Private Limited Stigma Credits and Capital Private Limited Storewell Credits and Capital Private Limited Sundown Finvest Private Limited Superpose Credits and Capital Private Limited The Lakaki Works Private Limited Yerowada Investment Limited.

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions
2000000	Preference Shares	Rs.100/- each	Rs. 200.000 Millions
	Total		Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :*

No. of Shares	Type	Value	Amount
10453819 #	Equity Shares	Rs.10/- each	Rs. 104.538 Millions

# Excludes 9860 (9860) Equity Shares of Rs. 10/- each, kept in abeyance.

* Of the above Equity Shares:

14,90,586 Equity Shares of Rs. 10/- each fully paid at a premium of Rs. 90/- per share were alloted on Conversion of Detachable Warrants issued with Right Shares.

Shares : Terms / Rights

i) Authorised Shares have been classified into Equity and Preference Shares.

ii) The Company has issued Equity Shares having par value of Rs. 10/- per Share. Each holder of Equity Shares is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting.

iii) During the year ended March 31, 2012, the amount of per Share Dividend recognised as distribution to Equity Shareholders is Rs. 6/- (Rs. 6/-).

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. No Preferential amounts exist as on Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Reconciliation of the Shares outstanding and the amount of Share Capital at the beginning and at the end of the reporting period:

Company has not issued any Equity Shares or Preference Shares during the year.

Equity Shares	31.03.2012
	No. in millions	Rs. In millions
At the beginning of the period	10.454	104.538
Issued during the period – Bonus issue	--	--
Issued during the period – ESOP	--	--
Outstanding at the end of the period	10.454	104.538

9860 (9860) Equity Shares of Rs. 10/- each, have been kept in abeyance as per pending legal proceedings.

Details of Shareholders holding more than 5% Equity Shares in the Company.

Name of the Shareholder	31.03.2012
	No. in millions	% holding
Equity Shares of Rs. 10/- each fully paid
Shri Deepak Chimanlal Mehta	1.727	16.52
Stiffen Credits & Capital Private Limited	0.838	8.02
Checkpoint Credits & Capital Private Limited	0.721	6.89
Stepup Credits & Capital Private Limited	0.692	6.62
Stigma Credits & Capital Private Limited	0.618	5.91
Fidelity Puritan Trust - Fidelity Low Priced	0.653	6.25

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		104.538	104.538	104.538
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2423.237	2274.556	2089.829
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2527.775	2379.094	2194.367
LOAN FUNDS
1] Secured Loans		2246.726	195.364	530.059
2] Unsecured Loans		217.771	261.003	395.537
TOTAL BORROWING		2464.497	456.367	925.596
DEFERRED TAX LIABILITIES		168.029	160.759	180.495
TOTAL		5160.301	2996.220	3300.458
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1813.207	1628.586	1660.728
Capital work-in-progress		1016.700	70.858	19.719
INVESTMENT		13.292	13.292	273.332
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	854.363	590.725	630.407
	Sundry Debtors	1574.875	1279.838	1022.499
	Cash & Bank Balances	935.377	58.745	51.764
	Other Current Assets	12.479	3.229	96.531
	Loans & Advances	795.279	506.855	460.230
Total Current Assets		4172.373	2439.392	2261.431
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1321.702	647.054	732.322
	Other Current Liabilities	422.112	395.355	78.808
	Provisions	111.457	113.499	103.622
Total Current Liabilities		1855.271	1155.908	914.752
Net Current Assets		2317.102	1283.484	1346.679
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5160.301	2996.220	3300.458

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	7898.919	6722.440	5422.110
		Other Income	28.413	51.720	42.468
		TOTAL (A)	7927.332	6774.160	5464.578
Less	EXPENSES
		Cost of Raw Materials and Components Consumed	5083.323	3902.569
		Purchase of Traded Goods	434.907	475.068	4902.949
		Employee Benefits Expenses	505.755	459.166
		Power & Fuel Expenses	768.841	651.630
		Other Expenses	623.920	551.734
		Impairment Provision / (Reversal)	(6.960)	15.664
		(Increase)/ Decrease in Inventories of Finished Goods, Work-in-Progress and Traded Goods	(87.416)	96.005
		TOTAL (B)	7322.370	6151.836	4902.949
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		604.962	622.324	561.629
Less	FINANCIAL EXPENSES (D)		111.244	71.418	83.348
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		493.718	550.906	478.281
Less/ Add	DEPRECIATION/ AMORTISATION (F)		177.858	181.338	175.102
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		315.860	369.568	303.179
Less	TAX (H)		85.032	111.597	103.043
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		230.828	257.971	200.136
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1089.527	954.522	865.393
Less	APPROPRIATIONS
		Dividend - Proposed	62.782	62.782	52.318
		Corporate Dividend Tax	10.185	10.185	8.689
		Transfer to General Reserve	50.000	50.000	50.000
	BALANCE CARRIED TO THE B/S		1197.388	1089.527	954.522
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	3463.852	2763.121	2459.102
	TOTAL EARNINGS		3463.852	2763.121	2459.102
	IMPORTS
		Raw Materials	1393.715	694.292	314.126
		Components, Spares Part and Stores	1.644	0.276	0.751
		Capital Goods	6.780	1.559	2.379
		Finished Goods for Resale	0.000	0.000	9.348
	TOTAL IMPORTS		1402.139	696.127	326.604
	Earnings / (Loss) Per Share (Rs.)		22.06	24.65	21.82

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rdQuarter
Net Sales	2085.700	2485.300	2520.700
Total Expenditure	1922.100	2319.700	2342.600
PBIDT (Excl OI)	163.600	165.600	178.100
Other Income	8.800	6.600	3.300
Operating Profit	172.400	172.200	181.400
Interest	32.800	10.100	28.500
Exceptional Items	85.800	(09.500)	0.000
PBDT	225.400	152.600	152.900
Depreciation	46.300	46.400	46.800
Profit Before Tax	179100	106.200	106.100
Tax	58.100	34.500	14.800
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	121.000	71.700	91.300
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	121.000	71.700	91.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.91	3.81	3.66
Net Profit Margin (PBT/Sales)	(%)	4.00	5.50	5.70
Return on Total Assets (PBT/Total Assets}	(%)	5.28	9.08	7.73
Return on Investment (ROI) (PBT/Networth)		0.12	0.16	0.14
Debt Equity Ratio (Total Debt/Networth)		0.97	0.19	4.42
Current Ratio (Current Asset/Current Liability)		2.25	2.11	2.47

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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	-----
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

COMPANY OVERVIEW

Subject is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine and Speciality Chemicals.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OUTLOOK

Globally, the operating environment over the last fiscal remained challenging for companies. The trigger effect of the financial crisis of 2008-09 continued and 2011-12 was an extended period of consolidation and uncertainty.

The Euro zone debt crisis intensified during the year and threatens to continue to be an overhang. In the near term, the tensions in the Middle East are leading to rising crude oil prices, the U.S. is showing only sporadic signs of a recovery and Japan is still reeling from the effects of last year’s Tsunami. Commodity prices also remain an area of concern. In this prevailing depressing environment, it is fast growing countries like India and China that have emerged as pillars of support for the global economy.

However, the last fiscal was one of slight disappointment even for India. Pressures due to persistent inflation, the overall global environment and weak political governance led to depression in business sentiment, all of which translated into a moderation in demand and growth rates.

Moving forward, however, GDP numbers are expected to improve gradually as interest rates have peaked out and a reversal is expected to follow. There are still many challenges in the economy, that they will need to overcome, especially as the situation globally is not very favourable. The near term outlook remains subdued mainly because of prevailing situations in Europe, U.S. and the Middle East which are hampering global growth. However, fundamentally strong companies in India should be able to effectively counter such challenges and emerge successful in the long-run.

In the midst of all this gloom, it is important to note that India will continue to be the second fastest growing economy in the world, after China.

INDUSTRY STRUCTURE AND RECENT DEVELOPMENTS

The chemical industry is one of the largest industries globally and contributes directly or indirectly to almost every sector of the economy. It plays a pivotal role, especially in a high growth country like India which is benefitting from strong domestic demand as well as ever increasing linkages to the global economy.

With a total size of about US $108 billion, the Indian chemical industry is the 6th largest in the world and the 3rd largest industry in India. It accounts for nearly 3% of the global chemical industry.

Growth prospects for the industry are attractive and are driven by increased demand, product innovation and improved production processes. The chemical industry in India is estimated to grow at 11% p.a. to cross US $ 220 billion mark by 2017 on a conservative basis.

Diversified in structure, the Indian chemical industry caters largely to broad manufacturing bases and markets like

fertilisers, petrochemicals, pharmaceuticals, dyes and intermediates, textiles, paper and food processing. Having emerged as a net earner of foreign exchange, the chemical industry is contributing significantly to the country’s industrial and economic growth. Fine and Speciality chemicals and knowledge-based chemicals are, in particular, playing a significant role in driving the growth of India’s chemical industry.

Notwithstanding the importance of this industry in the nation’s economic growth, the Indian chemical industry continues to be highly fragmented, with small scale of operations and limited emphasis on exports, hampering its growth. Challenges to cost competiveness due to high taxation and cost of capital and low pace of adoption of technology are other critical characteristics of the Indian chemical industry.

Despite these negative factors, the Indian chemical industry is today a key trade partner to the global chemical industry, which is becoming more and more inclined towards the East. Global chemical sales have increased by about 14% in Asia from 1999 to 2009, and this trend is expected to be further augmented. Individual segmental performance with respect to organic, inorganic and speciality chemicals is expected to grow.

The Indian chemical industry is responding suitably to the global trend. With companies around the world becoming more and more conscious about environmental norms, discharge of effluents and better safety for employees, quality standards in India have also shown considerable improvement in the recent past. This augurs well for the Indian chemical industry.

COMPANY PERFORMANCE

During FY 2012, the turnover of the Company increased to Rs. 7769.100 millions from Rs. 6610.800 millions in FY 2011. PBT for FY 2012 was Rs. 315.900 millions compared to Rs. 369.60 0millionsin FY 2011. PAT stood at Rs. 230.800 millions in FY 2012 as against Rs. 258.000 millions in FY 2011.

The Company performed well during the year, despite the highly uncertain global scenario, as volumes of products increased, leading to higher topline numbers. However, prices of raw materials remained volatile, thereby impacting margins, as the end product pricing takes some time for the necessary corrections.

SEGMENTAL PERFORMANCE

Organic Intermediates

Revenues for Organic Intermediates stood at Rs. 4609.800 millions for FY 2012 compared to Rs. 3812.300 millions in FY 2011. Organic Intermediate sales were higher due to increase in sales of Fuel Additives and Nitro Toluene business.

Inorganic Intermediates

Revenues for Inorganic Intermediates stood at Rs. 1321.000 millions for FY 2012 compared to Rs. 1221.100 millions in FY 2011. In FY 2012, the Inorganic Intermediates segment operated at almost full capacity utilisation on the back of increased demand in the domestic market and increased market share.

Fine and Speciality Chemicals

Revenues for Fine and Speciality Chemicals stood at Rs. 2205.400 millions for FY 2012, as against Rs. 2049.600 millions for FY 2011. The increase in Fine and Speciality Chemicals revenues was mainly on account of increase in volume and prices of Fine and Speciality Chemical business.

OUTLOOK

The year 2011-12 ended on a good note with total revenues touching a new high of Rs. 7927.300 millions. The Company is positive about the growth plans in the forthcoming fiscal year.

Going ahead, the Company foresees stronger relationships with its customers. Globally and domestically, the Company’s relationships with customers has been good. Quality, efficiency and cost competitiveness provides customers with a sense of comfort and satisfaction and encourages them to enter into longterm contracts with the Company. The Company expects the existing partnerships with key global players like Ciba, Syngenta and Bayer Cropscience to strengthen further and provide more opportunities.

De-bottlenecking at existing plants has been progressing smoothly, while the greenfield and brownfield expansions in Dahej and Nandesari are on schedule and progressing well.

THE YEAR IN RETROSPECT

Notwithstanding the challenging operating environment that prevailed, FY 2011-12 was a year of steady progress for the Company as turnover increased by 18%. Turnover grew to Rs. 7769.100 millions from Rs. 6610.800 millions in the previous year to touch a new high. This increase in turnover was driven by increased volume off-take, contribution from emerging product lines like Fuel Additives and Xylidines, as well as efforts to expand its base in new geographies like U.S. and China. Volume growth was achieved by de-bottlenecking activities undertaken in earlier years. The Fuel Additives business also touched a new high during FY 2011-12, generating a revenue of almost Rs. 1000.000 millions as compared to Rs. 630.000 millions in the previous year. The share of overall revenue contributed by the domestic market decreased from 58% to 56%, and in absolute terms, revenue grew from Rs. 3900.000 millions in FY 2010-11 to Rs. 4390.000 millions in FY 2011-12. While the share of exports to total revenues increased from 42% to 44%, revenue increased significantly on an absolute basis from Rs. 2820.000 millions to Rs. 3500.000 millions.

The Profit before Interest, Depreciation, Impairment and Tax for the year was Rs. 581.100 millions compared to Rs. 621.700 millions in previous year, and Profit After Tax for the year was Rs. 230.800 millions as against Rs. 258.000 millions in FY 2010-11. Earnings per Share stood at Rs. 22.06 in FY 2011-12, as compared to Rs. 24.65 per Share in FY 2010-11.

The year threw up varying operating conditions for countries around the world. Continued stagnation in the developed economies, intensification of the Eurozone debt crisis, persistent inflation in emerging markets and the events in the Middle East led to sluggish demand. However, the Company’s business showed remarkable resilience, mainly on account of a robust domestic demand and because of the fact that a majority of the Company’s exports in Europe are to economically stronger countries such as Germany and Switzerland. Further, exports to markets such as the U.S. and China are still at a nascent stage but the Company is confident of growing on the small base established in these countries.

In the domestic markets, the Company saw continued demand from agrochemicals, pharma and dyes and pigments segments, as well as growth in products like Fuel Additives and Xylidines.

While revenue growth was good, given the prevailing circumstances, profitability was muted due to price increases in raw materials, firming up of interest rates and fluctuations in foreign exchange rates. However, these pressures are showing signs of moderating and the Company is confident of improved margins, going forward.

During the year, the Company also continued to make steady progress on key strategic initiatives. A key area of

the Company’s focus, over the last few quarters, has been expansion, for which it has tied up US $ 45 million in ECBs at competitive rates for greenfield and brownfield projects at Dahej and Nandesari respectively. Once these projects become functional, the Company is hopeful of crossing revenues of the Rs. 10000.000 millions mark in the near future.

The Company has steadfastly maintained its policy of taking adequate measures to hedge currency risk, as a significant part of its revenues come from exports.

Greenfield expansion

The Company had embarked on a greenfield expansion at Dahej by establishing a new facility which would be a forward integration step of its Fine and Speciality chemical - DASDA for manufacturing Optical Brightening Agents (OBA). With the completion of this greenfield project at Dahej, the Company will be amongst the few fully integrated players in the world to be present across the entire value chain from Toluene to Optical Brightening Agent - OBA (Toluene -> PNT -> DASDA -> OBA). This plant will enable the Company to penetrate deeper into the global markets which is estimated at Rs. 42000.000 millions. The project is well on track and it is expected to be operational by FY 2013.

Brownfield expansion

The Company through its brownfield expansion has achieved a dual purpose of expanding the production capacity and also foraying into a new business segment (Heat storage related Solar Salts).

The Company’s existing facility of Sodium Nitrite is operating at almost full capacity. This expansion will enhance the manufacturing capacity by at least 50%. The additional production will cater mainly to the high price export market.

The Company is also embarking on a new business segment i.e. heat storage related Solar Salts. It is creating a capacity which would make it capable of manufacturing sodium and potassium nitrate of advanced quality, matching the needs of Solar Industry. The demands for such solar salts would be project based particularly where solar companies are targeting peak power supply. A part of this facility has been commissioned in FY 2012.

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
Deferred Sales Tax Loan	7.082	13.084
Deposits from Shareholders	1.951	3.899
Deposits from Public	86.831	156.215
Short Term Loans from Banks	121.907	87.805
Total	217.771	261.003

Note:

Short Term Loans from Bank represent Buyers’ Credit and Packing Credit including borrowing against Letter of Undertaking. This line of Credit is generally due within 180 days and carry interest in the range of LIBOR plus 1.5 % to 3 % p.a.

CONTINGENT LIABILITIES:

Contingent Liabilities not provided for

(Rs. in millions)

PARTICULARS	31.03.2012
a) in respect of Income Tax matters	13.679
b) in respect of Sales Tax / VAT matters	1.862
c) in respect of Excise matters	9.092
d) Bank Guarantees:
- Financial	52.158
- Performance	35.297
e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame	9.936
f) Disputed Labour Matters

In respect of (a) to (c) & (e) to (f) future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2012

(Rs. In millions)

	Particulars	Quarter Ended		Nine Months Ended
		31.12.2012	30.09.2012	31.12.2012
		(Unaudited)	(Unaudited)	(Unaudited)
	PART -1
1	Income from Operations
	(a) Net Sales/Income from Operations (Net of	2491.591	2432.812	6990.073
	Excise Duty)
	(b) Other Operating Income	29.096	52.456	98.658
	Total Income from Operations (Net)	2520.687	2485.268	7088.731
2	Expenses
	(a) Cost of materials consumed	1689.077	1562.627	4709.840
	(b) Purchases of Stock-in- trade	112.709	63.677	249.272
	(c) Changes in Inventories of Finished goods	(57.107)	128.305	(81.159)
	Work-in-progress and Stock-in-trade
	(d) Employee benefits expense	135.511	170.286	453.166
	(e) Depreciation and amortisation expense	46.845	46.409	139.588
	(f) Power & Fuel expense	237.008	207.334	657.635
	(g) Other expenses	225.396	187.406	592.621
	Total expenses	2389.439	2366.044	6720.963
3	Profit/(Loss) from Operations before Other income, Finance costs and Exceptional items (1-2)	131.248	119.224	367.768
4	Other Income	3.319	6.576	18.673
5	Profit/(Loss) from Ordinary activities before Finance costs and Exceptional items (3 ± 4)	134.567	125.800	386.441
6	Finance Costs	28.466	10.113	71.382
7	Profit/(Loss) from Ordinary activities after Finance costs but before Exceptional items (5 ± 6)	106.101	115.687	315.059
8	Exceptional items	-	(9.478)	76.360
9	Profity(Loss) from Ordinary activities before Tax (7±8)	106.101	106.209	391.419
10	Tax Expense	14.796	34.473	107.390
11	Net Profit/(Loss) from Ordinary activities after Tax (9+10)	91.305	71.736	284.029
12	Extraordinary items (Net of Tax expenses)	-	-	-
13	Net Profit/(Loss) for the period (11 ±12)	91.305	71.736	284.029
14	Paid-up Equity Share Capital (Face Value of Rs. 10/- each)	104.538	104.538	104.538
15	Reserve excluding Revaluation Reserves as per Balance Sheet of previous accounting year		—	—
16.i	Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualised)
	a) Basic	8.73	6.86	27.14
	b) Diluted	8.73	6.86	27.14
16.ii	Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualised)
	a) Basic	8.73	6.86	27.14
	b) Diluted	8.73	6.86	27.14
	PART - II
A.	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of Shares	4606642	4606642	4606642
	- Percentage of Shareholding	44.07	44.07	44.07
2	Promoters and promoter group shareholding (a) Pledged / Encumbered
	- Number of shares	Nil	Nil	Nil
	- Percentage of shares (as a % of the total	Nil	Nil	Nil
	shareholding of the Promoters and
	Promoter group)
	- Percentage of shares (as a % of the total	Nil	Nil	Nil
	share capital of the Company)
	(b) Non-encumbered
	- Number of shares	5847177	5847177	5847177
	- Percentage of shares (as a % of the total	100.00	100.00	100.00
	shareholding of the Promoters and
	Promoter group)
	- Percentage of shares (as a % of the total	55.93	55.93	55.93
	share capital of the Company)

B. Investor Complains	3 Months ended 31.12.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	1
Disposed off during the quarter	1
Remaining unresolved at the end of the quarter	Nil

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In millions)

	Particulars	Quarter Ended				Nine Months Ended
		31.12.2012	30.09.2012			31.12.2012
		(Unaudited)	(Unaudited)			(Unaudited)
1	Segment Revenue:
	a) Inorganic Intermediates	326.353		319.475	976.604
	b) Organic Intermediates *	1442.267		1438.566	4143.888
	c) Fine & Speciality Chemicals	787.735		729.432	2041.366
	d) Others	0.075		25.696	25.652
	Total	2556.430		2513.169	7187.510
	Less : Inter segment revenue	35.743		27.901	98.779
	Net Sales/Income from operations	2520.687		2485.268	7088.731
	* Includes Trading Turnover	116.310		65.306	256.982
2	Segment Results before Tax & Interest:
	a) Inorganic Intermediates	27.639		44.749	128.779
	b) Organic Intermediates	98.575		90.499	266.741
	c) Fine & Speciality Chemicals	74.011		58.520	209.476
	Total	200.225		193.768	604.996
	Less: i) Interest	28.466		10.113	71.382
	ii) Other un-allocable expenditure	65.658		77.446	142.195
	Net of un-allocable Income
	Total Profit Before Tax	106.101		106.209	391.419
3	Capital Employed:
	a) Inorganic Intermediates	756.031		589.528	756.031
	b) Organic Intermediates	1762.161		1592.449	1762.161
	c) Fine & Speciality Chemicals	1524.001		1247.675	1524.001
	d) Other unallocable	2574.627		2470.916	2574.627
	Total	6616.820		5900.568	6616.820

NOTES:

Estimated mark to market gain Rs. 2.604 millions on Forward / Derivative contracts related to forecast transaction will be recognised on actual settlement of these contracts.

Previous period figures have been regrouped / reclassified, where necessary, to make them comparable with current figures.

The Statutory Auditors of the Company have conducted a Limited Review of the results for the Quarter and Nine Months ended 31st December, 2012.

The above unaudited financial results were reviewed by audit committee and have been considered and approved by the Board of Directors at their meeting held on 8^th February, 2013.

FIXED ASSETS

v Tangible Assets

• Freehold Land
• Leasehold Land
• Plant and Machinery
• Factory and Other Buildings
• Roads
• Office Equipments
• Furniture and Fixture
• Vehicles

v Intangible Assets

• Goodwill
• Computer Software (Office-equipments)

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 exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.26
UK Pound	1	Rs.81.94
Euro	1	Rs.70.21

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		59

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.