MIRA INFORM REPORT

Report Date :

15.05.2013

IDENTIFICATION DETAILS

Name :	GUJARAT FLOUROCHEMICALS LIMITED
Registered Office :	Survey No 16/3, 26 And 27 Ranjitnagar, Ghoghamba Taluka, Panchmahal - 389380, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.02.1987
Com. Reg. No.:	04-009362
Capital Investment / Paid-up Capital :	Rs.109.850 Millions
CIN No.: [Company Identification No.]	L24110GJ1987PLC009362
TAN No.: [Tax Deduction & Collection Account No.]	BRDG01210G
PAN No.: [Permanent Account No.]	AAACG6725H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Refrigeration Gases, Anhydrous Hydrochloric Acid, Caustic Soda, Chlorine, Chloromethanes, Poly Tetrafluoroethylene, Post Treated Poly Tetrafluorethylene and earns revenue from carbon credits.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 85000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well established and a reputed company having an excellent track record. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered excellent for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = AA
Rating Explanation	High degree of safety and very low credit risk
Date	12.07.2012

Rating Agency Name	CRISIL
Rating	Short Term Rating = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	12.07.2012

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

DIRECTORS

As on 31.03.2012

Name :	Mr. D.K. Jain
Designation :	Director
Date of Birth/Age :	02.03.1929
Date of Appointment :	01.01.1988
Directorship held in other companies	1. Inox India Limited 2. Inox Leasing and Finance Limited 3. Inox Chemicals Private Limited 4. Siddhomal Investments Private Limited 5. Siddhapavan Trading and Finance Private Limited 6. Devansh Trading and Finance Private Limited 7. Devansh Gases Private Limited 8. Rajni Farms Private Limited 9. Inox International Private Limited 10. Siddhomal Air Products Private Limited 11. Sitashri Trading and Finance Private Limited
Name :	Mr. Shailendre D Swarup
Designation :	Director
Name :	Mr. Shailendre D Swarup
Designation :	Director
Date of Birth/Age :	20.11.1944
Date of Appointment :	01.01.1988
Directorship held in other companies	1. India Thermit Corporation Limited 2. Subros Limited 3. Bengal and Assam Company Limited 4. Eros Energy Private Limited 5. Vis Legis Consult Private Limited 6. Xerox India Enterprises Private Limited 7. Kangaroo Properties Private Limited 8. Dev Valley Devcon Private Limited
Name :	Mr. Vivek Jain
Designation :	Managing Director
Date of Birth/Age :	30.08.1955
Date of Appointment :	04.02.1987
Directorship held in other companies	1. Inox Air Products Limited 2. Inox India Limited 3. Inox Leisure Limited 4. Inox Leasing and Finance Limited 5. Inox Renewables Limited 6. Inox Chemicals Limited 7. Siddhomal Investments Private Limited 8. Siddhapavan Trading and Finance Private Limited 9. Devansh Trading and Finance Private Limited 10. Devansh Gases Private Limited 11. Rajni Farms Private Limited 12. Inox Infrastructure Services Private Limited 13. Inox International Limited 14. Inox DPNC Outsourcing Services Private Limited 15. Vindyachal Hydro Power Limited 16. Megnasolace City Private Limited 17. Siddhomal Air Products Private Limited 18. Sitashri Trading and Finance Private Limited 19. Gujarat Fluorochemicals Singapore PTE Limited
Name :	Mr. Dinesh Kumar Sachdeva
Designation :	Whole-Time Director
Date of Birth/Age :	12.12.1944
Date of Appointment :	29.11.1996
Name :	Mr. Jitendra Singh Bedi
Designation :	Whole-Time Director
Date of Birth/Age :	13.08.1953
Date of Appointment :	31.10.2006
Name :	Mr. Om Prakash. Lohia
Designation :	Director
Name :	Dr. S. Rama lyer
Designation :	Director
Name :	Mr. Deepak Asher
Designation :	Director and Group Head Corporate Finance
Name :	Mr. S.P. Jain
Designation :	Director
Name :	Mr. G. Arumugam
Designation :	Additional and Whole-time Director
Date of Birth/Age :	31.01.1959
Date of Appointment :	12.08.2011

KEY EXECUTIVES

Name :	Mr. B.V. Desai
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	170400	0.16
Bodies Corporate	76756415	69.87
Sub Total	76926815	70.03
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	76926815	70.03
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2252946	2.05
Financial Institutions / Banks	58941	0.05
Central Government / State Government(s)	1000	0.00
Foreign Institutional Investors	2450734	2.23
Any Others (Specify)	2000	0.00
Foreign Companies	2000	0.00
Sub Total	4765621	4.34
(2) Non-Institutions
Bodies Corporate	11957231	10.89
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	9589977	8.73
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5089143	4.63
Any Others (Specify)	1521213	1.38
Clearing Members	688196	0.63
Non Resident Indians	806517	0.73
Trusts	26500	0.02
Sub Total	28157564	25.63
Total Public shareholding (B)	32923185	29.97
Total (A)+(B)	109850000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	109850000	0.00

BUSINESS DETAILS

Line of Business :

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

Products :

Item Code No.	Product Description
290310	Chloro Fluoro Carbons
--	Carbon Credit Revenue
390400	Polytetra Fluoro Ethylene

GENERAL INFORMATION

No. of Employees :

Not Avilable

Bankers :

• Canara Bank
• ICICI Bank Limited
• Royal Bank of Scotland
• Oriental Bank of Commerce
• DBS Bank Limited
• HDFC Bank Limited
• BNP Paribas
• Citi Bank N.A.
• Axis Bank Limited
• Yes Bank Limited
• ING Vysya Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
From Banks
Rupee Loans	0.000	108.692
Foreign Currency Loans	3938.188	1957.856
Short-term borrowings
Cash Credit/Overdraft	301.461	525.439
Packing credit /Buyers credit
Rupee Loans	0.000	200.000
Foreign Currency Loans	541.047	708.010
Total	4780.696	3499.997

Banking Relations :	--
Auditors :
Name :	Patankar and Associates Chartered Accountants
Holding Company :	Inox Leasing and Finance Limited
Subsidiary Companies :	Inox Leisure Limited Inox Infrastructure Private Limited Inox Motion Pictures Limited Inox Wind Limited Gujarat Fluorochemicals Americas LLC, U.S.A. (GFL Americas LLC) Inox Renewables Limited (Incorporated on 11th November 2010) Fame India Limited (Subsidiary of Inox Leisure Limited w.e.f. 06th January 2011) Fame Motion Pictures Limited (formerly Shringar Films Limited) (Subsidiary of Fame India Limited) Big Pictures Hospitality Services Private Limited (Subsidiary of Fame India Limited) Headstrong Films Private Limited ((Subsidiary of Fame India Limited w.e.f. 27th March 2012) GFL Singapore Pte Limited(Incorporated on 25th July 2011) GFL GM Fluorspar SA ( Incorporated on 16th August 2011 and a subsidiary upto 28th September 2011 and subsequently a subsidiary of GFL Singapore Pte. Limited).
Joint Venture :	Xuancheng HengYuan Chemical Technology Company Limited
Enterprises over which Key Management Personnel, or his relative, has significant influence :	Devansh Gases Private Limited Devansh Trading and Finance Private Limited Inox India Limited Inox Air Products Limited Inox Chemicals Private Limited Refron Valves Limited Rajni Farms Private Limited Sidhapavan Trading and Finance Private Limited Siddho Mal Investments Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.1./- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
109850000	Equity Shares	Rs.1/- each	Rs.109.850 Millions

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Re 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any. During the financial year 2011-12 the Company has paid interim dividend of Rs. 2 per equity share (previous year Re 1 per equity share). Further, dividend of Rs. 1.50 per equity share (previous year Rs. 2.50 per equity share) is proposed to be distributed to the equity shareholders. The total distribution of dividend to the equity shareholders for the year is Rs. 3.50 per share (previous year Rs. 3.50 per share).

Shares held by holding company

Particular	Nos.	Rs. In Millions
Inox Leasing and Finance Limited	57715310	57.715

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

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

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		109.850	109.850	109.850
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21307.826	17362.270	15173.260
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		21417.676	17472.120	15283.110
LOAN FUNDS
1] Secured Loans		4780.696	3499.997	2805.829
2] Unsecured Loans		2848.354	1708.313	2572.915
TOTAL BORROWING		7629.050	5208.310	5378.744
DEFERRED TAX LIABILITIES		1306.773	1336.468	977.360
TOTAL		30353.499	24016.898	21639.214
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16268.361	12679.562	10648.930
Capital work-in-progress		2534.001	3305.954	599.230
Advances on Capital Account		0.000	0.000	737.153
INVESTMENT		2932.067	5708.446	7486.704
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4144.017	1805.130	1878.649
	Sundry Debtors	2478.331	1755.906	927.629
	Cash & Bank Balances	2113.404	187.639	755.825
	Other Current Assets	3.395	331.816	29.607
	Loans & Advances	4116.862	3462.479	2331.486
Total Current Assets		12856.009	7542.970	5923.196
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1209.207	1340.477	1272.355
	Other Current Liabilities	2577.701	3483.802	2232.634
	Provisions	450.031	395.755	251.010
Total Current Liabilities		4236.939	5220.034	3755.999
Net Current Assets		8619.070	2322.936	2167.197
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		30353.499	24016.898	21639.214

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	20689.961	9828.512	9863.450
		Other Income	576.395	995.256	706.378
		TOTAL (A)	21266.356	10823.768	10569.828
Less	EXPENSES
		Cost of materials consumed	2523.534	2121.616
		Purchases of Stock-in-trade	53.001	51.403
		Changes in inventories of finished goods, work-in-progress and Stock-in-trade	(942.965)	396.615	5498.614
		Employee benefits expense	665.284	556.307
		Other expenses	7606.515	3507.092
		TOTAL (B)	9905.369	6633.033	5498.614
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11360.987	4190.735	5071.214
Less	FINANCIAL EXPENSES (D)		571.300	298.716	480.333
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10789.687	3892.019	4590.881
Less/ Add	DEPRECIATION/ AMORTISATION (F)		778.159	448.624	570.307
	PROFIT BEFORE TAX (E-F) (G)		10011.528	3443.395	4020.574
Less	TAX (H)		5695.563	807.114	679.905
	PROFIT AFTER TAX (G-H) (I)		4315.965	2636.281	3340.669
Add	TAXATION PERTAINING TO EARLIER YEARS		0.000	0.000	0.866
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.255	29.274	16.919
Less	APPROPRIATIONS
		General Reserve	3850.000	2200.000	2880.000
		Interim Dividend	219.700	109.900	219.700
		Proposed Dividend	164.800	274.600	164.775
		Tax on Dividend	62.400	62.800	64.705
	BALANCE CARRIED TO THE B/S		37.320	18.255	29.274
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods calculated on FOB basis	14601.509	6051.624	6534.203
		Dividend	7.844	0.000	39.482
		Other Income-Other recoveries on exports	60.969	40.343	0.000
	TOTAL EARNINGS		14670.322	6091.967	6573.685
	IMPORTS
		Raw Materials	2458.442	1449.435	1022.153
		Fuel	603.418	450.389	0.000
		Finished goods	28.062	0.000	0.000
		Components and Spare Parts	114.408	78.540	49.213
		Capital goods ( Including capital work in progress)	332.903	1109.453	125.559
	TOTAL IMPORTS		3537.233	3087.817	1196.925
	Earnings Per Share (Rs.)		39.29	24.00	30.42

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	5855.300	3105.500	3643.200
Total Expenditure	3135.000	1761.900	2279.600
PBIDT (Excl OI)	2720.300	1343.600	1363.600
Other Income	129.100	51.1.300	129.600
Operating Profit	2849.400	1854.900	1493.200
Interest	153.700	140.600	175.300
Exceptional Items	0.000	0.000	0.000
PBDT	2695.700	1714.300	1317.900
Depreciation	234.800	242.600	244.100
Profit Before Tax	2460.900	1471.700	1073.800
Tax	870.80	372.500	356.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	1590.100	1099.200	716.900
Extraordinary Items	4.400	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	1594.500	1099.200	716.900

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	20.29	24.36	31.60
Net Profit Margin (PBT/Sales)	(%)	48.39	35.03	40.76
Return on Total Assets (PBT/Total Assets}	(%)	34.38	17.03	24.26
Return on Investment (ROI) (PBT/Networth)		0.47	0.20	0.26
Debt Equity Ratio (Total Debt /Networth)		0.36	0.30	0.35
Current Ratio (Current Asset/Current Liability)		3.03	1.45	1.58

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	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

DETAILS OF LITIGATION

HIGH COURT OF GUJARAT

TAX APPEAL No. 84 of 2013

Status : PENDING CCIN No : 001092201300084

Next Listing Date: 11.06.2013

Coram :

• HONOURABLE MR.JUSTICE AKIL KURESHI
• HONOURABLE MS JUSTICE SONIA GOKANI

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

S.NO.	Name of the Respondant	Advocate On Record
1	GUJARAT FLUOROCHEMICALS LIMITED	MR KM PARIKH for :Opponent(s)  1

Presented On	: 03/12/2012	Registered On	: 18/01/2013
Bench Category	: DIVISION BENCH	District	: VADODARA
Case Originated From	: THROUGH ADVOCATE	Listed	: 6 times
StageName	: FOR ADMISSION COMPANY MATTERS BOARD NO.I
Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	INCOME-TAX ACT, 1961

Other Forums

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

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	03/12/2012	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	20	MR KM PARIKH:1
2	03/12/2012	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for RESPONDENT(s)  1	20	MR KM PARIKH:1
3	28/12/2012	CERTIFIED COPY	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	6	MR KM PARIKH:1
4	28/12/2012	CERTIFIED COPY	MR KM PARIKH ADVOCATE for RESPONDENT(s)  1	6	MR KM PARIKH:1

Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	21/03/2013	7	-	OFFICE OBJECTION REMOVED	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
2	10/04/2013	7	-	ADMISSION (FRESH MATTERS)	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
3	29/04/2013	7	-	FOR URGENT ADMISSION COMPANY MATTERS BOARD NO.I	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI
4	07/05/2013	7	20	FOR URGENT ADMISSION COMPANY MATTERS BOARD NO.I	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI  HONOURABLE MS JUSTICE SONIA GOKANI

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Short-term borrowings
Short term loans	0.000	1100.000
Packing credit /Buyers credit
Rupee Loans	500.000	0.000
Foreign Currency Loans	2348.354	608.313
Total	2848.354	1708.313

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

Total global PTFE market is around 140,000 tpa, of which 60% is granular and 40% is dispersion grade. In terms of supply, the industry is dominated by two kinds of players – long time, high quality big players from developed countries, who command around 60% market share, and upcoming new players from developing countries who have around 40% market share.

The Company has entered the PTFE business in 2008, and in a short span of time, become a significant player in the global market. The Company is increasingly being perceived as a high quality PTFE supplier, and with the present capacity of 12,000 tpa, planned to be increased to 18,000 tpa, is poised to cater to a significant share of the global market, putting it in the bracket of the top 3 - 4 PTFE suppliers globally.

Indian market for PTFE is around 2,500 - 3,000 tpa, and growing at a healthy 7 – 8% per annum. The Company has more than 80% market share in India, being the only significant producer in the country. There is an immense latent potential for higher PTFE demand, and the Company is working with Indian PTFE processors to develop new products and applications to spur higher growth and demand in the domestic market.

Globally, the established players are moving to higher value added polymers, leaving the space in the traditional PTFE markets for players like the Company. The Company also plans to enter the segment of higher value added polymers in the near future.

The Company enjoys a significant competitive advantage, because of its integrated operations. It is amongst the only top 2 or 3 integrated players, giving it significant cost competiveness amongst other global players. The Company has placed enormous emphasis on high and consistent quality of all PTFE grades matching the best in the business, by continuous operations and process improvements. The Company has adopted marketing strategies to be proximate with customers and provide value added services such as warehousing facilities in the US and EU markets, and technical services to drive value for customers.

SEGMENT-WISE PRODUCT-WISE PERFORMANCE

Caustic Soda accounts for around 9% of the Company’s sales in value terms. Caustic soda sales increased last financial year by 45% in volume terms and by 136% in value terms. Similarly, Chloromethanes, which account for around 10% of the Company’s sales in value terms, increased last financial year by 84% in volume terms and 66% in value terms.

PTFE accounts for around 32% of the Company’s sales in value terms. PTFE sales recorded an increase of 23% in volume terms and 138% in value terms.

Around 16% of the Company’s PTFE sales last financial year came from the domestic market and more than 84% of PTFE sales from the export markets. The Company witnessed a 25% growth in its PTFE exports.

A bulk of the Company’s PTFE sales, more than 90%, comes from granular PTFE, with modified PTFE and compounds accounting for around 7%. Granular PTFE sales grew by around 19%, whereas modified PTFE and compounds grew by around 66% last year.

The Company expects to maintain a healthy sales growth rate going forward.

OUTLOOK

PTFE has been witnessing a growth rate of 4 – 5% over the past 30 years globally, and it is expected that this growth rate will continue, if not increase, due to new product and application development particularly in developing countries, in the future. With established players moving away into other fluoropolymers, this creates a space in the market that The Company aspires to be the first choice for the market to fill.

The establishment of capacity for dispersion PTFE is expected to improve the product mix of the Company significantly. With the Company increasing focus on dispersion PTFE, and growing the modified and compounding business, the Company expects the value addition in the PTFE business to increase further.

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

The Company is also seriously considering other product candidates in the fluoropolymer space, and would be taking an investment decision in these areas shortly, after a complete evaluation of the market, technologies and economics. This would provide an avenue of substantial growth in the near future.

CONTINGENT LIABILITIES

Rs. In Millions

Particulars	31.03.2012	31.03.2011
(A) Claims against Company not acknowledge as debt	0.722	0.722
(B) Other
Sales Tax	0.413	0.712
Income Tax	548.843	319.125
Service Tax	46.639	26.893
Excise duty	75.545	0.000
Electricity Duty	120.486	131.730

Note:

(a) Amount of Rs. 545.290 Millions (previous year Rs. 14.938 Millions) has been paid in respect of above Sales Tax, Income Tax, and Service Tax and Electricity duty demands and not charged to the Statement of profit and loss.

(b) During the year, the Company has received CIT(A) order for the Assessment Year 2008-09 where in the CIT(A) has confirmed the action of the Assessing Officer in respect of

i. treatment of Investment activity of the Company in respect of investment in shares as a business activity and

ii. the re-computation of the amount of deduction u/s 80IA by applying the regulatory prices in respect of power generated at its captive power units.

The Company has not accepted the order the of the CIT(A) and has preferred appeal before ITAT, Ahmedabad .The said issues were decided in favour of the Company by CIT(A) in earlier years. Consequently, the amount of demands in respect of the above are included in the amount of contingent liabilities in para (A).

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER, 2012

Rs. In Millions

Sr. No.	Particulars	3 months ended 31.12.2012	Preceding 3 months ended 30.09.2012	Nine months ended 31.12.2012
		(unaudited)	(unaudited)	(unaudited)
A	CONTINUING OPERATIONS
1	Income from operations
	a) Net Sales / Income from operations (net of excise duty)	3637.800	3096.700	12578.900
	b) Other Operating Income	5.400	8.800	25.100
	Total Income from operations (net)	3643.200	3105.500	12604.000
2	Expenses
	a) Cost of materials consumed	798.400	788.400	2304.300
	b) Purchases of stock-in-trade	0.000	18.000	21.000
	c)Changes in inventories of finished goods, work-in-progress and stock-in-trade	(270.700)	(384.500)	(796.700)
	d) Purchase of carbon credits	0.000	0.000	0.000
	e) Employee benefits expense	186.300	183.400	566.600
	f) Power and fuel	815.900	680.200	2330.900
	g) Foreign Exchange Fluctuation (Gain)/Loss (net)	273.400	(413.800)	836.200
	h) Depreciation and amortization expense	244.100	242.600	721.500
	i) Other expenses	476.300	476.400	1500.400
	j) Total Expenses (a to i)	2523.700	1590.700	7484.200
3	Profit from operations before other income, finance costs & exceptional items (1-2)	1119.500	1514.800	5119.800
4	Other Income	129.600	97.500	356.200
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	1249.100	1612.300	5476.000
6	Finance costs	175.300	140.600	469.600
7	Profit from ordinary activities after Finance Costs but before exceptional items (5-6)	1073.800	1471.700	5006.400
8	Exceptional Items	0.000	0.000	0.000
9	Profit from ordinary activities before tax (7+8)	1073.800	1471.700	5006.400
10	Tax Expense
	a) Current Tax	301.000	319.000	1448.900
	b) Deferred Tax	55.900	53.500	151.300
	c) Earlier Years Taxation	0.000	0.000	0.000
	Total Provision for Taxation (a to c)	356.900	372.500	1600.200
11	Net Profit from ordinary activities	716.900	1099.200	3406.200
12	Extraordinary Items (net of tax)	0.000	0.000	0.000
13	Net Profit for the period from continuing operations (11-12)	716.900	1099.200	3406.200
B	DISCONTINUED OPERATIONS
14	Total (Loss)/Profit before tax	0.000	0.000	6.500
15	Tax Expense	0.000	0.000	2.100
16	Net (Loss)/profit from discontinued operations	0.000	0.000	4.400
17	Net Profit for the period (13+16)	716.900	1099.200	3410.600
18	Paid-up Equity Share Capital (Face value of Re 1 each)	109.900	109.900	109.900
19	Reserves excluding revaluation reserves as per balance sheet of previous accounting year
20 i	Basic and Diluted Earnings per share (Continuing Operations )(Rs) (Face value of Re 1 each) - Not annualized	6.53	10.01	31.01
20 ii	Basic and Diluted Earnings per share (Total Operations ) (Rs) (Face value of Re i each) - Not annualized	6.53	10.01	31.05
A	Particulars of Shareholding
1	Public shareholding
	- Number of shares	32923185	32923185	32923185
	- Percentage of shareholding	29.97%	29.97%	29.97%
2	Promoters and promoter group Shareholding a) Pledged/Encumbered- Number of shares	Nil	Nil	Nil
	- Percentage of shares (as a percentage of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of shares (as a percentage of the total share capital of the company)	Nil	Nil	Nil
	b) Non-encumbered - Number of shares	76926815	76926815	76926815
	- Percentage of shares (as a percentage of the total shareholding of promoter and promoter group)	100.00%	100.00%	100.00%
	- Percentage of shares (as a percentage of the total share capital of the company)	70.03%	70.03%	70.03%
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	11
	Disposed off during the quarter	11
	Remaining un resolved at the end of the quarter	Nil

Notes:

1. The above results, reviewed by the Audit Committee, were approved by the Board of Directors at their meeting held on 30th January, 2013 and have undergone "Limited Review" by the Statutory Auditors.

2. Corresponding figures for the previous period / year have been regrouped / recast wherever necessary to correspond to current period / year classification.

3. The Board of Directors, at their meeting held on 30th January, 2013, have declared first interim dividend @ 150% i.e. Rs. 1.50 per share.

4. During the financial year ended 31st March 2012, the Company has transferred the entire Wind Energy Business to its subsidiary Inox Renewables Limited, by way of 'slump sale' which is reported as 'discontinued operations' in the above results. Power generation facilities which are generating and supplying power for captive use in the Chemical Business are retained and are part of the Chemical Business. Therefore, the Company now operates in a single business segment - "Chemicals".

FIXED ASSETS

• Buildings
• Plant and Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipments

AS PER WEBSITE

PRESS RELEASE

GUJ FLOUROCHEM OUTCOME OF CIRCULAR RESOLUTION

May 02, 2013

Gujarat Fluorochemicals Limited has informed BSE that the Board of Directors of the Company's subsidiary Inox Wind Limited, has informed Gujarat Fluorochemicals Limited ("Company") that they have constituted a committee of directors to evaluate and give recommendations on alternatives for raising capital by any permissible modes. The final decision will be taken by the board of directors of Inox Wind Limited at an appropriate time and there can be no assurance of any capital raising and listing even upon receiving recommendation from the Committee of Directors unless deemed appropriate by the board of Inox Wind Limited considering the prevailing market conditions and other relevant factors.The Board of Directors of the Company by a circular resolution dated May 01, 2013 has inter alia transacted the following business:The Board of Directors of the Company has constituted a committee of directors to consider and finalize its participation, if any, in the proposed capital raising initiatives and the terms and conditions of such participation and for matters incidental thereto.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.63
UK Pound	1	Rs.83.67
Euro	1	Rs.71.02

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		73

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.