MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	APAR INDUSTRIES LIMITED (w.e.f 08.10.1999)
Formerly Known As :	GUJARAT APAR POLYMER LIMITED
Registered Office :	301, Panorama Complex, R. C. Dutt Road, Vadodara – 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.09.1989
Com. Reg. No.:	04-012802
Capital Investment / Paid-up Capital :	Rs. 384.700 Millions
CIN No.: [Company Identification No.]	L91110GJ1989PLC012802
TAN No.: [Tax Deduction & Collection Account No.]	BRDA01335F / BRDA01312D / BRDA00836D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture of Conductors, Transformer/Speciality Oils and Power/ Telecom cables.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 22000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well established company having a good track record. Financial position of the company seems to be strong. The promoters and management seems to be experienced. The rating also takes into consideration it long term relationship with its customers and well established market position. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

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

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

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A+ (Long Term Bank Facilities) (Reaffirmed)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	09.01.2013

Rating Agency Name	CARE
Rating	A1+ (Short Term Bank Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	09.01.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office / Aluminium Conductors - Sales:	301, Panorama Complex, R. C. Dutt Road, Vadodara – 390007, Gujarat, India
Tel. No.:	91-265-2331935/ 2339906
Fax No.:	91-265-2330309
E-Mail :	aisbmby@bom3.vsnl.net.in com_sec@apar.com
Website :	http://www.aparind.com http://www.apar.com
Corporate Office / Specialty Oils Sales :	Apar House, Corporate Park, Sion-Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India
Tel. No.:	91-22-25263400/67800400
Fax No.:	91-22-25246326
E-Mail :	aisbmby@bom3.vsnl.net.in corporate@apar.com
Specialty Oils Manufacturing Facility 1 :	Rabale – Navi Mumbai 18,TT.C. M.I.D.C. Industrial Area, Near Rabale Telephone. Exchange, Thane Belapur Road, Rabale, Navi Mumbai - 400 701, Maharashtra, India.
Tel. No.:	91-22 – 27694756
Fax No.:	91-22 – 27694757
E-Mail :	apar_thane@apar.com
Specialty Oils Manufacturing Facility 2 / Al:	Silvassa – D. and NH Survey No.148 / 1 – 148 / 3, Silvassa - Rakholi Road, Vilage - Kudacha, Silvassa-396 230 (U.T. of Dadra Nagar Haveli) India.
Tel. No.:	91-260 - 2630193 / 2630194 / 2630282 / 2630961
E-Mail :	aparsil@apar.com
Aluminium Conductors Manufacturing Facility :	Silvassa – D. and NH Survey No.148 / 1 – 148 / 3, Silvassa - Rakholi Road, Vilage - Kudacha, Silvassa-396 230 (U.T. of Dadra Nagar Haveli) India. Tel. No.: 91-260 - 2630193 / 2630194 / 2630282 / 2630961 Email: aparsil@apar.com Nalagarh – HP Khasra No. 467, Hadbast No. 101, Muuza Beer Plassi, Tehsil. Nalagarh,  P.O. Manjhauli (Jagatkhana),   District Solan - 174 101, Himachal Pradesh, India   Tel. No.: 91-1795 - 265389 / 200384 Email: apar_nalagarh@apar.com
Cables Division Manufacturing	Plot No.158 to 163, GIDC, Umbergaon, District Valsad-396171, Gujarat, India
Tel. No.:	91-260-2562412 / 2563412
Fax No.:	91-260-2562950 / 2562954
E-Mail :	cable.production@apar.com
Cables Division Marketing  :	12/13, Jyoti Wire House, Off Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91 22 2674 0001/2/3
Fax No.:	91 22 2674 0600
E-Mail :	info.cable@apar.com
Branch Office :	Located At: · Bangalore · Chennai · New India · Kolkata · Hyderabad · Pune · Jabalpur · Bhopal

DIRECTORS

As on 31.03.2013

Name :	Dr. Narendra D. Desai
Designation :	Chairman and Managing Director
Qualification :	B.Sc. (Hons), London, M.S. (Ele. Engg.), Ph.D., Penn., USA, Sigma XI, A.A.M.I.E.E.
Date of Appointment :	28.09.1989
Name :	Mr. N. K. Thingalaya
Designation :	Director
Date of Birth/Age :	04.11.1937
Qualification :	Ph. D. (Economics)
Date of Appointment :	27.07.2001
Other Directorships:-	Canbank Investment Management Services Limited
Name :	Mr. F. B. Virani
Designation :	Director
Date of Birth/Age :	26.06.1945
Qualification :	B. E. (Chemical Engineering), M. S. (Chemical Engineering) (USA), MBA (USA)
Date of Appointment :	27.07.2001
Other Directorships:-	1. Dyna Cybertech Services Private Limited 2. Uniflex Cables Limited
Name :	Mr. Kushal N. Desai
Designation :	Managing Director
Date of Birth/Age :	21.02.1967
Qualification :	B.Sc. Hons., (Ele. Engg.) USA, B.S. Eco. Hons., (Wharton), USA
Date of Appointment :	24.03.1999
Name :	Mr. C. N. Desai
Designation :	Joint Managing Director
Date of Birth/Age :	15.07.1971
Qualification :	B.Sc (Hons.) (Chem. Engg.) USA, B.S. Eco. (Hons.) (Wharton), USA
Date of Appointment :	29.05.1993
Name :	Mr. H. N. Shah
Designation :	Director
Name :	Mr. Rajesh Sehgal
Designation :	Additional Director (w.e.f. 27th June, 2011)
Date of Birth/Age :	16.02.1971
Qualification :	PGDBM, CFA.
Other Directorships:-	HPL Additives Limited
Name :	Mr. Sanjiv Mahehwari
Designation :	Additional Director (w.e.f. 24.08.2011)

KEY EXECUTIVES

Name :	Mr. Sanjaya Kunder
Designation :	Company Secretary
Audit Committee:	Mr. H. N. Shah, Chairman Dr. N.K. Thingalaya Mr. F.B. Virani Mr. Rajesh Sehgal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	21147062	54.97
Bodies Corporate	110978	0.29
Any Others (Specify)	1635387	4.25
Trusts	1635387	4.25
Sub Total	22893427	59.51
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	22893427	59.51
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2195222	5.71
Financial Institutions / Banks	409	0.00
Foreign Institutional Investors	1982712	5.15
Sub Total	4178343	10.86
(2) Non-Institutions
Bodies Corporate	7353865	19.12
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2795163	7.27
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	992122	2.58
Any Others (Specify)	257511	0.67
Foreign Nationals	71897	0.19
Hindu Undivided Families	183204	0.48
Trust & Foundation	2410	0.01
Sub Total	11398661	29.63
Total Public shareholding (B)	15577004	40.49
Total (A)+(B)	38470431	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)	38470431	0.00

BUSINESS DETAILS

Line of Business :

Manufacture of Conductors, Transformer/Speciality Oils and Power/ Telecom cables.

Products :

Product Description	Item Code No. (ITC Code)
Acrylonitrile Butadiene Rubber	4002.59
Transformer and Speciality Oils	2710.90
AAC/AAAC/ACSR Conductors	7614.90

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Union Bank of India
• Syndicate Bank
• ING-Vysya Bank Limited
• IDBI Bank Limited
• ICICI Bank Limited
• State Bank of India
• Standard Chartered Bank
• Bank of Baroda
• Axis Bank Limited
• Credit Agricole – Corporate and Investment Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG-TERM BORROWINGS
Term loans
Foreign currency loan from banks	271.500	254.400
SHORT-TERM BORROWINGS
Working capital loans from banks	441.600	713.400
Total	713.100	967.800

Note:

The Term loan is secured by exclusive charge on the assets acquired by the company with the proceeds of the facility. Terms of repayment of term loan- In August, 2014 Rs. 81.400 Millions, In August, 2015 Rs. 81.400 Millions and In August, 2016 Rs.108.700 Millions.

Note:

Working capital loans from banks (secured) Rs. 441.600 Millions are secured by

- Hypothecation of specified stocks, specified book debts of the Company and movable plant and machinery at Nalagarh Unit.

- First charge by way of equitable mortgage by deposit of title deeds of Company’s specified immovable properties, both present and future.

- First charge by way of equitable mortgage by deposit of title deeds of certain immovable properties of Apar Corporation Private Limited, a related party.

Banking Relations :	---
Auditors :
Name :	Sharp and Tannan Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiary Companies :	Petroleum Specialities Pte. Limited, Singapore Quantum Apar Speciality Oil Pty. Limited (subsidiary of Petroleum Specialities Pte. Limited) Apar ChemateK Lubricants Limited (w.e.f. 26.09.2012) Marine Cables and Wires Private Limited (Amalgamated with Company from 1st April, 2012)
Joint Venture Company:	Apar ChemateK Lubricants Limited (Upto 25.09.2012, became subsidiary w.e.f. 26.09.2012)
Entities over which significant influence is exercised by key management personnel / individuals having significant influence:	Apar Corporation Private Limited Scope Private Limited and its' subsidiaries, viz a. Apar Investment ( Singapore ) Pte. Limited b. Apar Investment Inc Kushal N. Desai Family Trust Apar Technologies Private Limited Kushal Chaitanya N. Desai Family Trust Chaitanya N. Desai Family Trust Catalis World Private Limited Gayatri Associates AIL Benefit Trust

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
91998750	Equity Shares	Rs.10/- each	Rs.920.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38470431	Equity Shares	Rs.10/- each	Rs.384.700 Millions

NOTES

1. Reconciliation of the number of shares outstanding at the beginning and at the end of the year.

	March 31, 2013
Equity Shares	No. of shares	Rs. Millions
At the beginning of the year	35,972,394	359.700
Issued during the period-fresh issue*	*2,498,037	25.000
Outstanding at the end of the year	38,470,431	384.700

*Issued during the year to shareholders of erstwhile Uniflex Cables Limited as per the Scheme of Amalgamation

2. Disclosure as required by Accounting Standard (AS) 14 Accounting for Amalgamations :

(i) Marine Cables and Wires Private Limited (MCWPL) was engaged in the business of doing job works of manufacturing and sale of insulated Wires and Electrical Cables including Telecom Cables.

(ii) MCWPL was declared as Sick Industrial Company by Hon'ble Board for Industrial and Financial Reconstruction (BIFR) on February 1, 2010 and BIFR vide its record of proceedings dated 21st May, 2013 sanctioned Rehabilitation Scheme of MCWPL, envisaging its Amalgamation with the Company (Scheme) w.e.f. 1st April, 2012 (Appointed date/Transfer date).

(iii) Pending receipt of formal order from Hon'ble BIFR, the scheme has been given effect in financial statements. Upon receipts of Order and sanctioned scheme, the same will be filed with the Registrar of Companies and Effective date of amalgamation will be date of such filing.

(iv) The amalgamation has been accounted for under the 'Pooling of Interest method' as prescribed by Accounting Standard (AS) 14 Accounting for Amalgamations, specified by the Companies (Accounting Standard) Rules, 2006. Accordingly, the assets, liabilities including contingent liabilities and reserve of UCL as at 1st April, 2012 have been taken at their book values as stipulated in the said Scheme. The reserves of the transferor Company have been transferred to the respective reserves.

(v) The Scheme of amalgamation envisage cancellation of total paid up share capital of MCWPL held by the Company.

(vi) The amalgamation has resulted in transfer of assets, liabilities and reserves as on 1st April, 2010 in accordance with the terms of the Scheme is as under:

Particulars	Rs. in Millions
Fixed Assets
Investment	31.200
Current Assets	8.400
	39.600
Current Liabilities and Provisions	72.900
Non current liabilities	1.800
Transfer to Securities Premium Account	11.400
Transfer to Capital Reserve	1.600
Transfer to Statement of Profit and Loss	(57.600)
Credit to investment in MCWPL	9.500
Total	39.600

(vii) The net amount of investment in MCWPL Rs. 13.800 Millions (cost of Rs. 23.300 Millions less share capital of MCWPL Rs. 9.500 Millions) has been debited to Capital Reserve.

(viii) Deferred tax asset of Rs.16.600 Millions has been created for carried forward losses/depreciation and timing differences of erstwhile MCWPL by crediting to General Reserve.

(ix) After giving effect to the scheme net-worth of erstwhile MCWPL has become positive and as such the company will make an application to Hon’ble BIFR to take discharge from BIFR.

(x) In view of Amalgamation, current year figures are not strictly comparable to those of the previous year.

3. Terms/rights attached to equity shares

(i) The Company has only one class of equity shares having a 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 in the ensuing Annual General Meeting.

(ii) During the year ended 31 March, 2013, the amount of per share dividend recognized as distributions to equity shareholders is Rs. 5.25 /-, (Rs. 4 for FY 2012).

(iii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

4. Details of Shareholders holding more than 5% shares in the company

	March 31, 2013
Equity shares of Rs. 10/- each fully paid	No. of Shares	% of Holdings in the class
Dr. N. D. Desai	6,914,222	17.97%
Kushal N. Desai	6,920,778	17.99%
Chaitanya N. Desai	6,909,610	17.96%
Templeton Strategic Emerging Markets Fund III, L.D.C.	3,636,363	9.45%
Shinny Limited, Mauritius	2,635,138	6.85%
Reliance Capital Trustee Company Limied A/c. Reliance Diversified Power Sector Fund	--

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

5. Shares reserved for issue under options

The Company provides share-based payment to its employees. During the year ended 31 March, 2012, an Employee Stock Option Plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below:

Members' approval was obtained at the Annual General Meeting held on 9th August, 2007 for introduction of Employee Stock Option Scheme to issue and grant up to 1,616,802 options but the Board has granted 175,150 options till date.

	March 31, 2012
i. Outstanding at the beginning of the year	175150
ii. Granted during the year	--
iii. Forfeited during the year	--
iv. Exercised during the year	--
v. Outstanding at the end of the year	175150
vi. Exercisable at the end of the year	175150

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	384.700	359.700	3233.600
(b) Share Capital Suspense Account	0.000	25.000	0.000
(c) Reserves & Surplus	5217.300	4324.900	34239.300
(d) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	5602.000	4709.600	37472.900
(3) Non-Current Liabilities
(a) long-term borrowings	329.400	346.500	1473.800
(b) Deferred tax liabilities (Net)	109.500	134.700	934.800
(c) Other long term liabilities	137.900	410.500	2440.600
(d) long-term provisions	25.800	24.200	181.100
Total Non-current Liabilities (3)	602.600	915.900	5030.300
(4) Current Liabilities
(a) Short term borrowings	9403.200	9323.200	54303.300
(b) Trade payables	13277.000	8556.300	68165.700
(c) Other current liabilities	2933.100	4019.700	22972.800
(d) Short-term provisions	242.200	188.400	3511.900
Total Current Liabilities (4)	25855.500	22087.600	148953.700
TOTAL	32060.100	27713.100	191456.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2396.200	1801.500	12035.600
(ii) Intangible Assets	26.900	15.100	132.800
(iii) Capital work-in-progress	451.000	212.800	216.900
(iv) Intangible assets under development	2.800	3.500	0.000
(b) Non-current Investments	284.900	59.800	3155.400
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	457.200	463.300	2208.200
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	3619.000	2556.000	17748.900
(2) Current assets
(a) Current investments	796.200	0.000	0.000
(b) Inventories	7408.500	6662.500	42733.500
(c) Trade receivables	7935.600	8320.500	62977.600
(d) Cash and cash equivalents	10320.900	8245.800	38327.000
(e) Short-term loans and advances	1314.600	1383.600	28397.300
(f) Other current assets	665.300	544.700	1272.600
Total Current Assets	28441.100	25157.100	173708.000
TOTAL	32060.100	27713.100	191456.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	45321.900	34532.600	27233.410
		Other Income	77.000	5.400	1.270
		TOTAL (A)	45398.900	34538.000	27234.680
Less	EXPENSES
		Cost of raw materials and components consumed	35546.600	28499.100	21546.950
		Purchases of stock-in-trade	293.300	107.400	111.590
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(197.000)	(614.900)	(10.840)
		Employee benefits expense	518.100	439.400	250.270
		Other expenses	6207.000	4137.600	3348.060
		Exceptional items	46.200	19.600	1.970
		TOTAL (B)	42414.200	32588.200	25248.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2984.700	1949.800	1986.680
Less	FINANCIAL EXPENSES (D)		1343.100	1141.300	254.940
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1641.600	808.500	1731.740
Less/ Add	DEPRECIATION/ AMORTISATION (F)		238.600	212.800	137.090
	PROFIT BEFORE TAX (E-F) (G)		1403.000	595.700	1594.650
Less	TAX (H)		381.400	2.500	536.120
	PROFIT AFTER TAX (G-H) (I)		1021.600	593.200	1058.530
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1041.230	1735.410	1027.960
	Loss of Amalgamating Subsidiary		(57.600)	(1019.480)	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	183.400	89.000	110.000
		Interim Dividend	0.000	0.000	80.840
		Tax on Interim Dividend	0.000	0.000	13.430
		Proposed Dividend	202.000	153.880	125.900
		Tax on Proposed Dividend	34.300	24.960	20.910
	BALANCE CARRIED TO THE B/S		1585.530	1041.230	1735.410
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	12825.400	8844.600	5451.810
		Other Earnings	931.800	315.600	298.850
		Deemed Exports	0.900	698.400	696.360
	TOTAL EARNINGS		13758.100	9858.600	6447.020
	IMPORTS
		Raw Materials	22406.900	17691.500	12363.030
		Stores & Spares	3.600	2.400	2.120
		Capital Goods	137.600	32.700	11.070
		Others	662.700	411.900	0.000
	TOTAL IMPORTS		23210.800	18138.500	12376.22
	Earnings Per Share (Rs.)
			26.56	15.55	32.74
			26.56	15.55	32.74

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Type	1^st Quarter
Net Sales	9454.000
Total Expenditure	9285.500
PBIDT (Excl OI)	168.500
Other Income	18.800
Operating Profit	187.300
Interest	(35.800)
Exceptional Items	(1.500)
PBDT	221.600
Depreciation	60.000
Profit Before Tax	161.600
Tax	57.700
Provisions and contingencies	0.000
Profit After Tax	103.900
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	103.900

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.25	1.72	3.89
Net Profit Margin (PBT/Sales)	(%)	3.10	1.73	5.86
Return on Total Assets (PBT/Total Assets}	(%)	4.48	2.17	0.85
Return on Investment (ROI) (PBT/Networth)		0.25	0.13	0.04
Debt Equity Ratio (Total Debt /Networth)		1.74	2.05	1.49
Current Ratio (Current Asset/Current Liability)		1.10	1.14	1.17

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

LITIGATIONS DETAILS

HIGH COURT OF GUJARAT

CIVIL APPLICATION No. 211 of 2012

In TAX APPEAL/ 445/ 2012 ( PENDING )

Status : PENDING	( Converted from : O/ST/1225/2012 )	CCIN No : 001073201200211
Last Listing Date:	03/09/2012
Coram	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI HONOURABLE MR.JUSTICE N.V.ANJARIA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER - CENTRAL EXCISE CUSTOMS AND SERVICE TAX - VAPI	MR GAURANG H BHATT for: Applicant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1	APAR INDUSTRIES LIMITED	MR PA JADEJA for :Respondent(s)  1

Presented On	: 20/06/2012	Registered On	: 17/07/2012
Bench Category	: DIVISION BENCH	District	: VALSAD
Case Originated From	: THROUGH ADVOCATE	Listed	: 3 times
StageName	: FOR REGULAR ADMISSION
Classification	DB - CIVIL APPLICATION - CODE OF CIVIL PROCEDURE, 1908 - STAY / INTERIM RELIEF - IN SPECIAL CIVIL APPLICATION
Act	CENTRAL EXCISES AND SALT ACT, 1944

OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	20/06/2012	APPLICATION	MR GAURANG H BHATT ADVOCATE for PETITIONER(s)  1	20	MR GAURANG H BHATT:1
2	15/08/2012	VAKALATNAMA	MR PA JADEJA ADVOCATE for RESPONDENT(s)  1	-	MR PA JADEJA:1

COURT PROCEEDINGS

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	03/09/2012	3	-	FOR REGULAR ADMISSION	NEXT DATE	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA

AVAILABLE ORDERS

S. No.	Case Details	Judge Name	Order Date	CAV	Judgment/Order	Download
1	TAX APPEAL/445/2012	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA	28/08/2012	N	ORDER	Download
2	TAX APPEAL/445/2012	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA	03/09/2012	N	ORDER	Download

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
LONG-TERM BORROWINGS
Deposits
Deposits from directors	2.500	6.000
Deposits from public	55.400	86.100
SHORT-TERM BORROWINGS
Packing credit loan in foreign currency from Banks	415.300	727.600
Buyer's credit in foreign currency	8503.800	7838.900
Loans and Advances from related parties repayable on demand	0.800	0.700
Public deposits	3.200	4.100
Director’s deposits	38.500	38.500
Total	9019.500	8701.900

FINANCIAL RESULTS

Standalone results for the year 2012-13 include effect of amalgamation of Marine Cables and Wires Private Limited (MCWPL) with the Company from 1st April, 2012 being the transfer date as detailed in para 2(a) of this report. However, the same for the year 2011-12 are without such inclusion and therefore not comparable.

MANAGEMENT DISCUSSION AND ANALYSIS / OUTLOOK:

(A) Industry Structure, Development, Opportunities, Threats, Outlook

The Indian Government has revised the capacity addition in power generation upwards to 88,537 MW as compared to the initial target of 76,000 MW for the 12th Five Year Plan (2012-17). India’s future GDP growth will depend greatly on the supply of electricity to the various parts of the country.

The addition in power generation during the previous year has fallen short by around 20% as compared to the target set by the Government. The Indian Power sector has been facing difficulties due to the coal sourcing issues and environmental clearances, resulting in slowdown in fresh investments in generation.

The Indian economy continued to be under strain during the year. The domestic demand for electrical equipment remained depressed. The Indian electrical industry had a reduction of growth of approx 6% as compared to the previous year.

There is a general expectation that once the issues on the generation sector are addressed, the power sector will bounce back. Being amongst the leading companies in the fields of transformer oils, conductors and cables, Their Company will stand to gain further, once the market revives.

Despite the challenges from the external circumstances in the previous year, the Company increased its revenue from Rs. 34532.600 Millions to Rs. 45321.900 Millions (net of excise duty) increased by 31.2% on standalone basis. The Company’s export stood at Rs. 12825.400 Millions during the year which was 45% more than the exports of the previous year and were to over 90 countries.

Margins from the manufacturing activities during the year were Rs. 3030.900 Millions as against Rs. 1969.400 Millions in the previous year on standalone basis; increased by 53.9%. The segment-wise operations were as under:

(i) Transformer and Speciality Oil segment

This division contributed 41.9 % of the Company’s revenue. Details of sales revenues and segmental profit (standalone basis) are:

Rs. In Millions	2012-13	2011-12	Variation (%)
Turnover	19263.100	18166.300	(+) 6.0
Segment Profit	1131.600	1401.110	(-) 19.2
Export	6467.300	5102.860	(+)26.7

The year FY13 was a challenging year for the speciality oil division especially in the domestic market. Transformer oil sales in the domestic market were affected most in the distribution transformer segment and sale to the electricity distribution companies. The main reason for this is the poor financial health of the state electricity distribution companies. This has resulted in lower demand for distribution transformers from the lack of funds and slow recovery of payments from them which in turn has affected the financial capability of the distribution transformer manufacturers. The Company has had to resort to a careful approach to this segment, limiting sales in cases to maintain prudent control on debtors. Demand in the power transfer segment has also been affected but its impact on the Company was not as much as in the distribution segment.

The other sub-business segments of white oils, rubber process oils, industrial and automotive lubricants have all increased volume sales over the previous year. There was also a very strong improvement in overseas business (outside India sales), which registered a volume growth of 25%. Hence, the overall volume growth of the oil segment was up by approximately 7.7% in the backdrop of difficult market circumstances. This is reflective of the strong product and brand positioning, the Company enjoys in the marketplace and with its customers.

Even though there was an increase in sales volume, the profitability has been affected due to the following three reasons:

a) There was fluctuation in the prices of base oils through the year, which resulted in longer period to increase prices in the face of reduced demand.

b) There was a lot of fluctuation in the exchange rate and as a consequence of the variability, an increase in hedging costs.

c) The financial liquidity in the market has been generally poor resulting in increase in debtor days, limiting sales to reduce debtor exposure and as a result of some of these effects higher cost of debtors and carrying inventory.

During the year, the Company also increased its equity stake in its joint venture, Apar ChemateK Lubricants Limited, which markets the world famous Agip branded lubricants from 50% to 97.5%. In the coming years, the Company will increase its efforts and resources to grow its sales in the automotive sector and expects to grow this sub-segment at a faster pace than the other sub-segments.

The net sales turnover of the Agip brand of automotive lubricants produced by the Company with a license and technical knowhow of ENI-S.p.A of Italy, increased to Rs.1813.800 Millions as against Rs. 1632.500 Millions in the previous year.

The profit for this segment came in at Rs. 1131.600 Millions as against Rs. 1401.100 Millions in the previous year even though there was an increase in sales volume.

In the coming year, the Company is cautiously optimistic that the demand for its products will be better once policy decisions announced for the revival of the power sector are implemented.

(ii) Conductor division

Rs. In Millions	2012-13	2011-12	Variation (%)
Turnover	22263.000	13625.800	(+) 63.4
Segment Profit	1970.900	583.900	(+) 237.5
Export	5767.900	2794.100	(+) 106.4

The division had a strong year registering significant increases in sales turnover, segment profit and export turnover. The orders were generally profitable and allowed for optimum capacity utilisation.

During the year, the division entered into an agreement with CTC Global, USA for the manufacture of a certain type of patented high-performance conductor called ACCC under CTC’s license.

The domestic orders executed included a large component from PGCIL which were booked in 2011-12. Unfortunately, PGCIL had not finalised many orders during 2012-13. PGCIL has been experiencing slowdown in execution of its projects on account of delays in generation projects, right of way issues and land acquisition problems. The Company has booked orders from other customers in the private sector which will be executed during 2013-14.

During the year, the Company embarked on expanding its capacity in Silvassa in order to improve its competitiveness in the domestic and export markets.

The order book as of 1st April, 2013 stood at Rs. 11320.000 Millions and the orders in pipeline stood at Rs. 2560.000 Millions.

(iii) Uniflex Cables Division

Rs. In Millions	2012-13	2011-12	Variation (%)
Turnover	4185.300	3543.100	(+) 18.1
Segment Profit	(8.600)	28.400
Export	590.200	947.600	(-) 37.7

The cables segment had a good growth in terms of sales value of about 18% from the previous year. The revenue of Uniflex cables in the last four and a half years under the Apar management (September 2008 onwards) has grown from Rs. 312.500 Millions to Rs. 4075.400 Millions representing a CAGR of 76.95%.

The main area for sales growth came from high tension cables. The Company also increased its presence in the optical fibre cable segment with new approvals from BSNL, Reliance and export customers. There is a significant expansion and upgradation that the Company is investing in this area as there is likely to be strong demand both in India and overseas in the OFC networks.

The overall market conditions remain to be very competitive with margins on standard products being unremunerative. The Company continues to focus on value added products to overcome this situation.

The E-beam plant is nearing completion. The Company has installed two accelerators. Of the two, the 1.5 MeV is already ready and is awaiting final approval for commercial operation from the Atomic Energy Research Board which is expected by the end of Q1FY14. Trial production on this machine has been successful and products have started receiving acceptance from clients. The 3 MeV machine is still under installation and commissioning.

Several cost reduction measures have been taken by improving machinery, processes and manpower reduction. The company has also implemented a successful VRS scheme.

The company is working towards a similar growth in FY14 over FY13. There will also be a further improvement in the product mix as the company gets its E beam accelerators fully commissioned and approvals for its newly developed products.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Rs. In Millions

Particular	31.03.2013	31.03.2012
a) Claims against the Company not acknowledged as debts -
i) Demand/ Show cause-cum-demand notices received and contested by the Company with the relevant appellate authorities: Excise duty (also refer note (iii) below)
Service tax	46.500	44.000
Customs duty	2.000	2.000
Sales tax	105.400	104.700
ii) Arbitration award regarding dispute of alleged contractual non-performance by the Company, against which the Company is in appeal before Bombay High Court.	79.400	74.800
iii) Interest on delayed payment of excise duty, (which duty payment was revenue neutral) on certain deemed exports. Department has filed appeal in the Supreme Court against High Court Order in Company's favour.	44.500	44.500
iv) Labour matters	68.000	31.400
v) Others	60.700	59.800
b) Guarantee given by the Company for credit facilities enjoyed by Petroleum Specialities Pte Limited, a wholly-owned subsidiary	542.900	508.800
c) Bills of exchange discounted	2066.100	1574.400
d) Taxation: Disputed demands of income tax	69.900	39.900

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10449812	17/09/2013	330,000,000.00	UNION BANK OF INDIA	OVERSEAS BRANCH, UNION BANK BHAVAN,, 239, VIDHAN  BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA -  400021, INDIA	B85302081
2	10426504	15/05/2013	330,000,000.00	UNION BANK OF INDIA	OVERSEAS BRANCH, UNION BANK BHAVAN, GROUND FLOOR, 239, VIDHAN BHAVAN MARG, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA	B75406249
3	10348687	15/05/2013 *	30,000,000,000.00	IL AND FS TRUST COMPANY LIMITED	IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA  - 400051, INDIA	B75861997
4	10317838	14/11/2011	250,400,000.00	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK	168, ROBINSON ROAD,, #22-01, CAPITAL TOWER, SINGAPORE, - 068912, SINGAPORE	B25379025
5	10133842	22/03/2012 *	25,582,000,000.00	IL AND FS TRUST COMPANY LIMITED	IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA  - 400051, INDIA	B36949675
6	10131264	28/07/2010 *	1,100,000,000.00	IL AND FS TRUST COMPANY LIMITED	IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA  - 400051, INDIA	A90488669
7	10105169	28/07/2010 *	1,100,000,000.00	IL AND FS TRUST COMPANY LIMITED	IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA  - 400051, INDIA	A90488446
8	90212256	13/10/1992 *	6,621,000.00	GUJRAT STATE FINANCIAL CORPORTION	JALDARSHAN BUILDING; ASHRAM ROAD;, AHEMADABAD, GUJARAT - 380009, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land Freehold
• Leasehold Building
• Plant and Machinery
• Furniture and Fixture
• Motor Vehicles
• Intangible Assets

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013

Rs. In Millions

Sr. No.	Particulars	3 months ended
		30.06.2013
		Unaudited
1	Income from operations
	(a) Net sales/income from operations (net of excise duty)	9378.400
	(b) Other operating income	75.600
	Total income from operations (net)	9454.000
2	Expenses
	(a) Cost of materials consumed	7191.500
	(b) Purchases of stock-in-trade	98.900
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	12.100
	(d) Employee benefits expense	136.700
	(e) Depreciation and amortisation expense	60.000
	(f) Other expenses	1259.300
	Total expenses	8758.500
3	Profit from operations before other income, finance costs and exceptional items (1-2)	695.500
4	Other income	18.800
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	714.300
6	Finance costs (net)
	Interest (net) and other borrowing costs	(35.800)
	Applicable net loss on foreign currency transactions and translation	587.000
	Total	551.200
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)	163.100
8	Exceptional items	1.500
9	Profit from ordinary activities before tax (7-8)	161.600
10	Tax expense	57.700
11	Net Profit from ordinary activities after tax (9-10)	103.900
12	Extraordinary items (net of tax expense)	-
13	Net Profit for the period/year (11-12)	103.900
14	Paid-up equity share capital (Face value of the share Rs. 10 each)	384.700
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year
16	Earnings Per Share (EPS) (Rs.) (before and after extraordinary items)
	- Basic and Diluted (not annualised)	2.70
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of shares	1,58,00,143
	Percentage of shareholding	41.07%
2	Promoters and Promoter Group Shareholding
	a) Pledged / encumbered
	Number of shares	Nil
	Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group)	Nil
	Percentage of shares (as a % of the total share capital of the Company)	Nil
	b) Non-encumbered
	Number of shares	2,26,70,288
	Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group)	100.00%
	Percentage of shares (as a % of the total share capital of the Company)	58.93%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed of during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

UNAUDITED STANDALONE SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT FOR THE QUARTER ENDED 30TH JUNE, 2013

Rs. In Millions

Particulars	3 months ended
	30.06.2013 Unaudited
Segment Revenue
Conductors	3411.000
Transformer and Speciality Oils	5061.300
Power/Telecom Cable	983.900
Others/Unallocated	38.700
Total	9494.900
Less: Inter-Segment Revenue	40.900
Total income from operations (net)	9454.000
Segment Results before finance costs and tax
Conductors	401.500
Transformer and Speciality Oils	436.600
Power/Telecom Cable	(64.100)
Others	4.300
Total	778.300
Less : Finance costs (net)	551.200
: Unallocable expenditure net of income	65.500
Profit before tax	161.600
Capital Employed (Segment Assets - Segment Liabilities)
Conductors	1688.500
Transformer and Speciality Oils	2475.000
Power/Telecom Cable	2053.600
Others/Unallocated	917.800
Total	7134.900

Notes:-

1) The above standalone unaudited results were reviewed by the Audit Committee of Directors and approved by the Board of Directors at their meeting held on 8th August, 2013.The statutory auditors of the Company have carried out a limited review of the above standalone results for the quarter ended 30th June, 2013.

2) The Rehabilitation Scheme of Marine Cables and Wires Private Limited (MCWPL), Company's wholly-owned subsidiary, envisaging its' amalgamation with the Company with effect from 1st April, 2012 (the Transfer Date) has been approved by the Board for Industrial and Financial Reconstruction (BIFR) at its hearing on 16th May, 2013. Consequent to the amalgamation, the results of each of the quarters from 1st April, 2012, the quarter ended 30th June, 2012 as reported have been recasted.

3) The figures for the quarter ended 31st March, 2013 are the balancing figures between audited figures in respect of the full financial year upto 31st March, 2013 and the unaudited published year to date figures upto 31st December, 2012 being the date of the end of the third quarter of the financial year, which were subjected to limited review.

4) Additional information:

Key financial figures on Consolidated basis:

Rs. In Millions

	Three Months Ended
Particulars	30.06.2013 (Unaudited)
Revenue	9645.500
Profit before tax	205.100
Profit after tax and minority interest	147.900
Basic/Diluted EPS - in ?	38.400

5) The financial results of the Company are being forwarded to the Stock Exchanges (BSE and NSE) for uploading on their respective websites and the same are also made available on the Company's website viz.

6) Figures for previous periods/ year have been regrouped, wherever necessary.

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.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.