MIRA INFORM REPORT

Report Date :

22.05.2013

IDENTIFICATION DETAILS

Name :	I G PETROCHEMICALS LIMITED
Registered Office :	T-10, 3^rd Floor, Jairam Complex, Mala, Neugi Nagar, Panaji – 403001, Goa
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.10.1988
Com. Reg. No.:	24-000915
Capital Investment / Paid-up Capital :	Rs. 307.981 Millions
CIN No.: [Company Identification No.]	L51496GA1988PLC000915
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Organic Chemicals.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 10000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. Financial seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct 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.

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	CARE
Rating	Long Term Bank Facilities: BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	July, 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.

INFORMATION PARTED BY

Name :	Mr. Sailesh
Designation :	Accounts Departments
Contact No.:	91-22-30286100
Date :	20.05.2013

LOCATIONS

Registered Office :	T-10, 3^rd Floor, Jairam Complex, Mala, Neugi Nagar, Panaji – 403001, Goa, India
Tel. No.:	91-832-2434973
Fax No.:	Not Available
E-Mail :	igpetro@vsnl.com akadkol@igpetro.com
Website :	www.igpetro.com
Location :	Owned
Corporate Office :	401-404, Raheja Centre, 214 Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-30286100/ 132/133
Fax No.:	91-22-22040747/ 22836392
Email :	igpetro@vsnl.com
Factory :	T-2, MIDC Industrial Area, Taloja – 410208, Rajgad, Maharashtra, India
Tel. No.:	91-22-39289100/ 146
Fax No.:	91-22-27410192
Executive Office :	D-4, Jyothi Complex, 134/1, Infantry Road, Bangalore- 560001, Karnataka, India.
Tel. No.:	91-80-22868372/ 22868778
Fax No.:	91-80-22868778

DIRECTORS

As on: 31.03.2012

Name :	Mr. M. M. Dhanuka
Designation :	Chairman
Name :	Mr. Nikunj Dhanuka
Designation :	Managing Director
Name :	Mr. Premjit Singh
Designation :	Director
Name :	Mr. Rajesh Muni
Designation :	Director
Name :	Dr. A. K. A. Rathi
Designation :	Director
Name :	Mr. J. K. Saboo
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Sailesh
Designation :	Accounts Departments
Name :	Mr. R, Chandrasekaran
Designation :	Chief Financial Officer and Secretary
Address :
AUDIT COMMITTEE	· Mr. Premjit Singh (Chairman) · Mr. M. M. Dhanuka · Mr. Rajesh R. Muni · Dr. A. K. A. Rathi
REMUNERATION COMMITTEE	· Mr. Premjit Singh (Chairman) · Mr. M. M. Dhanuka · Mr. Rajesh R. Muni · Dr. A. K. A. Rathi

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	% of share holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	508862	1.65
Bodies Corporate	21581337	70.08
Sub Total	22090199	71.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	22090199	71.73
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9500	0.03
Financial Institutions / Banks	5400	0.02
Foreign Institutional Investors	3100	0.01
Sub Total	18000	0.06
(2) Non-Institutions
Bodies Corporate	989270	3.21
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	5973412	19.40
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1224393	3.98
Any Others (Specify)	499576	1.62
Directors & their Relatives & Friends	6700	0.02
Clearing Members	5181	0.02
Non Resident Indians	487695	1.58
Sub Total	8686651	28.21
Total Public shareholding (B)	8704651	28.27
Total (A)+(B)	30794850	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)	30794850	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Organic Chemicals.
Exports :
Countries :	Germany
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Phthalic Anhydride	MT	116110	116110	109147

(As per Industrial Entrepreneur’s Memorandum filed with the Ministry of Industry).

Note: The need for licensing no longer exists following the amendment to the Industries (Development and Regulation) Act, 1951. As such no IDR Licences are now required by us to operate our plants and the figures of Licenses above, are based on the original documents issued before such amendments.

GENERAL INFORMATION

Customers :

Manufacturing Company

No. of Employees :

300 (Approximately)

Bankers :

· The Lakshmi Vilas Bank Limited

· State Bank of India

· YES Bank Limited

· The Cosmos Co-operative Bank Limited

· Andhra Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loan
Banks	99.250	0.000
External Commercial Borrowing	54.700	0.000
Hire Purchase Finance	2.893	3.510
Working Capital facilities from Banks	61.263	94.823
Term Loan – Others	0.000	0.355
Factoring Facility	90.747	172.782
Current Maturities of Finance Lease Obligations (Secured by the assets so acquired)	4.398	5.122
Total	313.251	276.592
· The Rupee Term Loans are secured by Hypothecation of movable properties (other than current assets) and equitable mortgage on immovable properties of the Company on first pari passu charge basis with ECB lender. It is further secured by second charge on the Current Assets of the Company. The Rupee Term Loans are further secured by personal guarantee of two directors of the company. · The External Commercial Borrowings (ECB) is secured by Hypothecation of movable properties (other than current assets) and registered mortgage on immovable properties of the Company on first pari passu charge basis with Rupee Term Loan lenders. · Hire Purchase finance are secured by the assets acquired through such finance. · Working Capital facilities are secured by Hypothecation of current assets of the company i.e. stock of raw materials, stock in process, finished goods and book debts. It is further secured by hypothecation of movable properties and equitable mortgage of immovable properties of the Company on second and subservient charge basis. Working Capital facilities are further secured by Personal Guarantee of two Directors of the Company. · Factoring facility is secured by respective book debts and personal guarantee of two directors of the Company.

Banking Relations :	--
Auditors :
Name :	Hariharan and Company Chartered Accountants
Address :	No. 133, 26th Cross, 6th Block, Jayanagar, Bengaluru – 560082, Karnataka, India
Internal Auditors
Name :	Malpani and Associates Chartered Accountants
Address :	307, Chartered House 297/299, Dr. Cawasji Hormasji Street , Near Marine Lines Church, Mumbai – 400002, Maharashtra, India
Enterprises owned or significantly influenced by key management personnel or their relatives:	Mysore Petro Chemicals Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs. 400.000 Millions
1000000	Preference Share	Rs.100/- each	Rs. 100.000 Millions
	Total		Rs. 500.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
30801350	Equity Shares	Rs.10/- each	Rs. 308.014 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30794850	Equity Shares	Rs.10/- each	Rs. 307.949 Millions
	Add: Amount paid up on 6500 shares forfeited		Rs. 0.032 Millions
	Total		Rs. 307.981 Millions

Shareholders holding more than 5% Shares in the company

Particular	Number of Shares
Brahamputra Enterprises Limited	1833528
Gembel Trade Enterprises Limited	1791089
Kamrup Enterprises Limited	1894884
Mysore Petrochemicals Limited	4075000
Savita Investment Company Limited	1933414
Shekhawati Investment Corporation Limited	4078210
Vincent ( India) Limited	2565716

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		307.981	307.981	307.981
2] Share Warrant		0.000	0.000	0.000
3] Reserves & Surplus		2280.096	2186.366	2092.692
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2588.077	2494.347	2400.673
LOAN FUNDS
1] Secured Loans		313.251	276.592	436.468
2] Unsecured Loans		193.605	108.105	99.845
TOTAL BORROWING		506.856	384.697	536.313
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3094.933	2879.044	2936.986
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2156.699	2149.830	2232.560
Capital work-in-progress		184.708	185.114	147.489
INVESTMENT		0.691	0.591	0.592
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	575.145	847.011	358.829
	Sundry Debtors	1032.657	619.644	429.490
	Cash & Bank Balances	300.437	75.630	67.207
	Other Current Assets	0.018	0.014	0.011
	Loans & Advances	325.953	218.247	349.675
Total Current Assets		2234.210	1760.546	1205.212
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1399.311	1145.048	345.315
	Others Current Liabilities	69.696	61.352	290.515
	Provisions	12.368	10.637	13.037
Total Current Liabilities		1481.375	1217.037	648.867
Net Current Assets		752.835	543.509	556.345
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3094.933	2879.044	2936.986

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	8860.720	6312.952	5418.642
		Other Income	38.932	9.396	69.706
		TOTAL (A)	8899.652	6322.348	5488.348
Less	EXPENSES
		Cost of Material Consumed	7540.394	5326.681
		Decrease / ( Increase ) in Inventory	43.686	(218.091)
		Purchases of Traded Goods	19.679	90.464	4877.660
		Employees Benefits Expense	186.771	158.063
		Others Expenses	647.626	516.361
		TOTAL (B)	8438.156	5873.478	4877.660
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		461.496	448.870	610.688
Less	FINANCIAL EXPENSES (D)		146.494	141.576	145.132
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		315.002	307.294	465.556
Less/ Add	DEPRECIATION/ AMORTISATION (F)		149.018	142.059	136.459
	PROFIT BEFORE TAX (E-F) (G)		165.984	165.235	329.097
Less	TAX (H)		33.081	32.932	55.930
	PROFIT AFTER TAX (G-H)		132.903	132.303	273.167
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1605.770	1473.467	1200.300
	BALANCE CARRIED TO THE B/S		1738.673	1605.770	1473.467
	EARNINGS IN FOREIGN CURRENCY
		FOB value of goods exported	1298.236	715.734	870.313
	TOTAL EARNINGS		1298.236	715.734	870.313
	IMPORTS
		Raw Materials	1532.451	1100.839	610.945
		Stores & Spares	12.755	13.591	14.170
		Capital Goods	28.070	0.000	36.573
		Others	28.110	32.469	28.794
	TOTAL IMPORTS		1601.386	1146.899	690.482
	Earnings Per Share (Rs.)		4.32	4.30	8.87

QUARTERLY RESULTS

Particular	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2335.000	2510.600	2466.200
Total Expenditure	2198.900	2264.100	2333.300
PBIDT (Excl OI)	136.100	246.500	132.900
Other Income	7.700	8.000	10.300
Operating Profit	143.800	254.500	143.100
Interest	43.200	46.700	45.600
Exceptional Items	0.000	0.000	0.000
PBDT	100.600	207.800	97.600
Depreciation	35.800	37.500	37.800
Profit Before Tax	64.800	170.300	59.800
Tax	13.300	34.900	12.300
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	51.500	135.400	47.600
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	51.500	135.400	47.600

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.49	2.09	4.98
Net Profit Margin (PBT/Sales)	(%)	1.87	2.62	6.07
Return on Total Assets (PBT/Total Assets}	(%)	3.78	4.23	9.57
Return on Investment (ROI) (PBT/Networth)		0.06	0.07	0.14
Debt Equity Ratio (Total Debt /Networth)		0.19	0.15	0.22
Current Ratio (Current Asset/Current Liability)		1.51	1.45	1.86

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	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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

NOTE:

The registered office of the company has been shifted from 211, 2^nd Floor, Kamat Towers, EDC Complex, Patto Plaza, Panaji - 403001, Goa, India to present address

OPERATIONAL REVIEW

It has been a good year for the Company, which has delivered a stellar performance by achieving a production of 115673 MT at 99.62% during the year, as against 109147 MT at 94% during 2010-2011. This performance came despite the closure of one of the PA plants for about 10 days during November 2011, causing production losses. The Net Revenues were higher at Rs. 8860.720 Millions as against Rs. 6312.952 Millions. Net Profit was Rs. 132.903 Millions as against Rs. 132.303 Millions.

Though the Company operated at nearly 100% and sold almost all its produce, the PA market was sluggish, especially during the third quarter of the year, as the market conditions were unfavourable due to heavy dumping in the local markets. This led to a squeeze on margins, thereby affecting profitability for the first three quarters. Further, the high international crude oil price caused prices of downstream products including, Orthoxylene (OX) to be on the rise throughout the financial year. The declining rupee rate added to the Company’s woes.

In an effort to combat the problem, the PA manufacturers association made a representation to the Government for imposing Safeguard duty on PA to avoid dumping of PA at cheap rates, and to ease the margin pressure and achieve sustainability. Responding to the PA manufacturers’ plea, the Government introduced a Safeguard Duty, in January 2012, of 10% ad-valorem for a period of one year. This resulted in imports becoming dearer and the industry started showing

OPPORTUNITIES, CONCERNS AND FUTURE OUTLOOK

With greater and continued thrust on infrastructure, the Indian economy is expected to grow at 7% in the current year. The macro-economic environment continues to cause concern on account of various factors, such as high fiscal deficit, widening Balance of Payment position, inflationary pressures, forex volatility, etc. which pose a serious threat and challenge to sustained growth. The Company hopes that the Government will address these issues suitably.

Till the time, however, that strong policy decisions are taken to tackle these challenges, the overall industrial scenario, and the PA industry in particular, faces a tough and challenging situation. On the positive side, however, the Safeguard Duty on PA would help tide over the crisis and enable the industry to sail through smoothly. In the long term, the macro-economic fundamentals are conducive for business growth and sustainability. There is a strong demand for PA, which they are well placed to leverage on the back of their focused strategies to expand capacities. This, going forward, shall form the foundation for the Company’s sustainable growth.

The Company’s expansion project is well on stream and should be completed within the targeted timeline of first quarter of the Financial year 2013-2014. On completion of the project, the total expanded PA capacity of the Company would be 166110 MT. This would help the Company mitigate some of the challenges of the increasing cost pressures arising out of volatile raw material prices, thus strengthening their gross margins. With this expanded capacity, the Company would be one of the largest and the lowest cost producers of PA in the world. Besides, the Reserve Bank has softened the interest rates to fuel growth in the economy and the commercial banks are expected to follow suit, thereby improving the margins.

PA is a vital industrial material and is growing steadily at 8-10% in tandem with the growth of user industries viz. plasticizers, resins, paints, unsaturated polyster resins and dyes/pigments and other industries.

The Company is also exploring certain opportunities to captively utilize the huge capacity which would be available after expansion as a forward integration process, and add certain value added products to de-risk its existing business.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

Despite a bright economic outlook at the beginning of the year 2011 and growth expectations in excess of 9%, the Indian economy failed to grow to its full potential in fiscal 2011-12. The growth rate fell to 6.9% after recording 8.4% in each of the two preceding years. On the global front, economic performance continued to be extremely fragile, with industrial production recording a sideways growth characterised by a cycle of rebounds only to face further headwinds. The crisis in the Eurozone area and near recessionary conditions prevailing in Europe, sluggish growth in many industrialised countries and hardening of international crude prices contributed to the external factors negatively impacting the Indian economy.

Notwithstanding these global and domestic factors, the prospects for the coming year look bright, with a forecasted growth rate of 7.5% to 8% for fiscal 2012-13. Better fiscal conditions, improvement in savings and capital formation, along with easing of inflationary pressure, are expected to dilute the pressures on the Indian economy in the coming months.

INDUSTRY STRUCTURE AND KEY DEVELOPMENTS

Petrochemical Industry

Petrochemicals dominate the global chemicals with an estimated market share of almost 40%. Petrochemicals are the downstream products of the oil and gas industry - an industry whose products find common place in everyday life. They are an integral hidden component of a variety of products including textiles, plastic bottles, fertilizers, tyres, paints, pharmaceuticals and many other applications.

From the demand perspective, in past few years a slower off take was witnessed as the market was adversely impacted by the global recession. Europe and North America lowered import of finished goods which in turn impacted the off take of PA. However, the Asian markets particularly China, India and in the rest of Asia demand remained firm. Asia is also emerging as the manufacturing hub for various end products which require various petrochemicals. By 2018, it is estimated that 60 % of the petrochemical growth is likely to take place in Asia, with China accounting for about one-third of the growth.

The Petrochemicals industry is an integral component of the Indian economy due to its linkages with various domestic manufacturing industries, such as pharmaceuticals, construction, agriculture, textiles, cables, plastics, etc. The most distinctive feature of the industry is its “enabling” character as it supplies more than 80,000 products which are used virtually in every field. The importance of this industry can be gauged from the fact that today, 96% of all manufactured products require the use of at least some form of chemical.

OUTLOOK

India’s economic growth is expected to remain robust over the forseable future and this augurs well for the near term.

Looking at the demand potential, the Company has also planned its own capex expansion. The Company has raised the financial funding for the planned brown field expansion of 50,000 metric tonnes PA. The Company has achieved financial closure for the estimated capex of Rs. 2250.000 Millions of which Rs. 650.000 Millions is through domestic loan, Rs 750.000 Millions by way of External Commercial Borrowings (ECB) and balance through Promoters/Internal accruals.

Post expansion, I G Petrochemical will emerge as the world’s third largest plant at a single location and also be amongst the lowest cost producer. Being a brown field expansion project, the incremental capex costs are low and with further economies of scale setting in, it will catapult the Company into a distinctly advantageous position as volumes will usher even higher cost competitiveness. Thus, while capex expansion across the industry can be a challenge, the overall cost competitive nature of the expansion, will enable it to mitigate this risk and instead provide it a sharply competitive edge.

Increased production will help the company leverage advantages and increase the plant’s efficiency. Benefits from the Captive Power Production and improved waste utilisation will also add to the bottom line. The Company is also optimistic of developing new products downstream which would help to open a new window of opportunity for future growth prospects.

Given the scenario, the Company maintains a positive outlook for the long term.

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
From Bodies Corporate	193.605	108.105
Total	193.605	108.105

CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs in Millions)

Particular	31.03.2012	31.03.2011
a. Bills of Exchange Discounted
- with Banks	55.116	111.036
- with Others	130.651	208.412
b. Cases decided in favour of the Company which are taken further in appeal before the appellate authorities by the department	1056.425	1056.425
Other Matters for which the Company is in appeal. (Deposits paid under protest Rs. 66.535 Millions (Previous Year Rs. 66.535 Millions)
Show Cause Notices received	1450.957	1342.415
c. Claim against the Company not acknowledged as Debt in respect of Electricity Duty on internal power generation.	2.963	10.947
d. Custom Duty on Raw Material under Advance License pending Export Obligation. (Includes Cenvat Credit available Rs. 136.255 Millions (Previous Year Rs. 97.545 Millions).	178.565	132.059
The Income tax assessments of the Company have been completed upto the assessment year 2009-2010 and while completing the assessments for certain years the Income tax Department had disallowed certain claims of the company which had resulted in reduction of Carried Forward benefits available to the company as per the Income Tax Act 1961 and the additional tax liability that may arise amounts to: These matters are in appeal before the Appellate authorities. Based on the interpretation of the relevant provisions of the Income Tax Act, the Company has been legally advised by an eminent Counsel that the matters will be in favour of the Company. Future cash outflows in respect of item b, c and e above are determinable only on receipt of judgments / decisions pending at various forums/authorities.	159.789	110.847
Workmen’s Union Demand of the Company at Taloja with effect from 1st June 2011 is under negotiation, amount presently not ascertainable.	-	-

FIXED ASSETS:

· Free hold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· 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 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. 55.04
UK Pound	1	Rs. 83.95
Euro	1	Rs. 70.93

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.