MIRA INFORM REPORT

Report Date :

15.11.2013

IDENTIFICATION DETAILS

Name :	TRANSPEK-SILOX INDUSTRY LIMITED
Registered Office :	Kalali Road, Atladra, Vadodara – 390012, Gujarat
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	29.03.1996
Com. Reg. No.:	04-029188
Capital Investment / Paid-up Capital :	Rs. 120.609 Millions
CIN No.: [Company Identification No.]	U28999GJ1996PLC029188
TAN No.: [Tax Deduction & Collection Account No.]	BRDT00555C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufactures inorganic chemicals for a wide range of applications such as Textile, Paper and Pulp, Tyre and Rubber, Paint and Plastics etc.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 8200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a joint venture between TRANSPEK INDUSTRY LIMITED INDIA and SILOX, S.A BELGIUM. It is a well-established and reputed company having fine track record. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Overall fundamentals of the company appears to be strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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	CRISIL
Rating	Cash Credit (AA)
Rating Explanation	High degree of safety it carry very low credit risk.
Date	24 January 2012

Rating Agency Name	CRISIL
Rating	Letter Credit (A 1+)
Rating Explanation	Highest degree of safety it carry lowest credit risk.
Date	24 January 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 (GENERAL DETAILS)

Name :	Mr. Varghese
Designation :	Export Department
Contact No.:	91-265-2680401
Date :	14.11.2013

LOCATIONS

Registered Office/ Factory :	Kalali Road, Atladra, Vadodara – 390012, Gujarat, India
Tel. No.:	91-265-2680401/ 2/ 3/ 4/ 5
Fax No.:	91-265-2680407/ 2680062
E-Mail :	dsmhjni@tilbrd.com rjeevm@tilbrd.com (Domestic) rajeevn@tilbrd.com (Exports) anirudh@tsilbrd.com (Purchase) creer@tsilbrd.com (HRM)
Website :	www.transpek-silox.com
Location:	Owned

DIRECTORS

As on 14.03.2013

Name :	Mr. Ashwin Chmpraj Shroff
Designation :	Chairman
Address :	B-15, Vasanta Theoophical Society, Juhu Road, Juhu, Mumbai, Maharashtra, India
Date of Birth/Age :	22.01.1945
Date of Appointment :	18.01.2001
DIN No.:	00019952
Name :	Mr. Paresh Manilal Saraiya
Designation :	Managing Director
Address :	18, Chrotar Society, Old Padra Road, Vadodara, , Pin – 390020, Gujarat, India
Qualification:	B. E.(Mech.)
Date of Birth/Age :	12.08.1953
Date of Appointment :	19.01.2001
DIN No.:	00063971
Name :	Mr. Tigrane Mouchegh Djierdjian
Designation :	Director
Address :	26, Boulevard DV Tenao, Monaco, France26, Boulevard DV Tenao, Monaco, France
Date of Birth/Age :	02.09.1948
Date of Appointment :	19.01.2001
DIN No.:	00030676
Name :	Mr. Antonio Angelo Di Nallo
Designation :	Director
Address :	75 Avenue De Gulle, F 78600 Maisons Laffitte, France
Date of Birth/Age :	29.09.1948
Date of Appointment :	19.01.2001
DIN No.:	00028439
Name :	Mr. Philippe Georges Coster
Designation :	Director
Address :	18, Rue Du Werihet, 4052, Beaufays, Belgium
Date of Birth/Age :	24.04.1960
Date of Appointment :	19.01.2001
DIN No.:	00028008
Name :	Mr. Robert Alfred De Coster
Designation :	Director
Address :	8 LA Clairiere B-5190, Onoz, jemeppe Sur Sambre, Belgium
Date of Birth/Age :	01.10.1943
Date of Appointment :	19.09.2002
DIN No.:	00030721
Name :	Mr. Lakshminarsimhachari Rajgopaln
Designation :	Director
Address :	A-3, Sahyog, Gorwa – Refinery Road, Vadodara – 390016, Gujarat, India
Date of Birth/Age :	01.07.1937
Date of Appointment :	19.01.2001
DIN No.:	00063935
Name :	Mr. Robert Jasmin
Designation :	Director
Address :	Avenue Guillaume, Macu, 8/001Er, Brussels, 1050, Belgium
Date of Birth/Age :	04.12.1950
Date of Appointment :	18.03.2010
DIN No.:	03024797

KEY EXECUTIVES

Name :	Mr. Digamber Shriram Mahajni
Designation :	Secretary
Address :	101, Nityam Homes, 36, Shrinagar Society \, SBI Urmi Branch Lane, Akota, Vadodara – 390020, Gujarat, India
Date of Birth/Age :	19.12.1963
Date of Appointment :	14.03.2012
DIN No.:	CPPM5455L
Name :	Mr. Varghese
Designation :	Export Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.03.2013

Names of Shareholders	No. of Shares
Transpek Industry Limited, India	949313
L. Rajagopalan	1
Societe Industrielle Liegeoise des oxides S A (Silox)	1
Shailesh K Solnki	10044132
Tigrane Djierdjian	1
Antonio Di Nallo	1
Philippe Renier	1
Excel Industries Limited, India	1067450
Total	12060900

Equity Share Break up (Percentage of Total Equity)

As on 14.03.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	83.28
Bodies corporate	16.72
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufactures inorganic chemicals for a wide range of applications such as Textile, Paper and Pulp, Tyre and Rubber, Paint and Plastics etc.

Products :

ITC Code No.	Product Description
283110.1	Sodium Hydro Sulphite
283190.02	Sodium Formaldehyde Sulphoxylate
2817.1	Zinc Oxide

Exports :

Products :

Finished Goods

Countries :

· USA

· France

· Canada

· Spain

· UK

· Italy

· China

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customer:	End users
No. of Employees :	1000 (Approximately)
Bankers :	State Bank of India, MID-Corporate Group Industrial Financial Branch, Marble Arch, Race Course Circle, Vadodara – 390007, Gujarat, India

Banking Relations :	--
Auditors :
Name :	Deloitte Hakins and Sells Chartered Accountants
Address :	31, Nutan Bharat Society, lakpuri, Vadodara – 390007, Gujarat, India
PAN No.:	AADFD2337G
Related Parties:	· Divkar Chemicals Limited · Shroffs Engineering Limited · Hydro Technologies INC, Canada · Societe Nouvelledes Couleures Zinciques (SNCZ)

CAPITAL STRUCTURE

As on 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12060900	Equity Shares	Rs.10/- each	Rs. 120.609 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2012	31.12.2011	31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		120.609	120.609	120.610
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1940.680	1512.860	1298.570
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2061.289	1633.469	1419.180
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	107.650
TOTAL BORROWING		0.000	0.000	107.650
DEFERRED TAX LIABILITIES		121.242	106.767	102.760
TOTAL		2182.531	1740.236	1629.590
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		927.496	739.940	698.270
Capital work-in-progress		5.253	69.385	12.740
INVESTMENT		576.861	180.874	195.780
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	176.985	178.495	146.170
	Sundry Debtors	1067.941	867.336	698.300
	Cash & Bank Balances	368.940	557.942	518.650
	Other Current Assets	8.476	5.697	0.000
	Loans & Advances	107.042	114.928	239.770
Total Current Assets		1729.384	1724.398	1602.890
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	446.590	583.834	0.000
	Other Current Liabilities	193.736	147.062	534.210
	Provisions	416.137	243.465	345.880
Total Current Liabilities		1056.463	974.361	880.090
Net Current Assets		672.921	750.037	722.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2182.531	1740.236	1629.590

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Income	5753.362	4596.982
		Other Income	90.567	66.328
		TOTAL (A)	5843.929	4663.310	4020.970
Less	EXPENSES
		Cost of Materials Consumed	3174.212	2772.934
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	7.679	(12.335)
		Employee benefit expense	331.966	280.925
		Other Expense	1209.868	1035.270
		TOTAL (B)	4723.725	4076.794	3429.010
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1120.204	586.516	591.960
Less	FINANCIAL EXPENSES (D)		19.947	24.128	26.420
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1100.257	562.388	565.540
Less/ Add	DEPRECIATION/ AMORTISATION (F)		61.017	51.082	45.970
	PROFIT BEFORE TAX (E-F) (G)		1039.240	511.306	519.570
Less	TAX (H)		317.054	149.831	157.610
	PROFIT AFTER TAX (G-H) (I)		722.186	361.475	361.960
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		134.275	219.980	205.690
Less	APPROPRIATIONS
		Transfer to General Reserve	400.000	300.000	200.000
		Dividend	253.280	126.640	126.640
		Tax on Dividend	41.090	20.540	21.030
	BALANCE CARRIED TO THE B/S		162.091	134.275	219.980
	Earnings Per Share (Rs.)		59.88	27.93	30.01

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	12.36	7.75	9.00
Net Profit Margin (PBT/Sales)	(%)	18.06	11.12	NA
Return on Total Assets (PBT/Total Assets}	(%)	39.12	20.75	22.58
Return on Investment (ROI) (PBT/Networth)		0.50	0.31	0.37
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.08
Current Ratio (Current Asset/Current Liability)		1.64	1.77	1.82

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	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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10058454	23/01/2013 *	420,000,000.00	STATE BANK OF INDIA	MID-CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE,, VADODARA - 390007, GUJARAT, INDIA	B70726633
2	90095214	23/01/2013 *	420,000,000.00	STATE BANK OF INDIA	MID-CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE,, VADODARA - 390007, GUJARAT, INDIA	B70726708

*Date of Charge Modification

LITIGATION DETAILS:

HIGH COURT OF GUJARAT TAX APPEAL No. 51 of 2008
Status: PENDING (Converted from ST/1980/2007) CCIN No : 001092200800874 Last Listing Date: 09/02/2009 Coram: HONOURABLE THE CHIEF JUSTICE Y.R.MEENA HONOURABLE MR.JUSTICE J.C.UPADHYAYA
S.NO.	Name of the Petitioner				Advocate On Record
1	ASST. COMMISSIONER OF I.T.				MR KM PARIKH for: Appellant(s) 1
S.NO.	Name of the Respondant				Advocate On Record
1	TRANSPEK SILOX INDUSTRIES LTD.				RULE SERVED for :Opponent(s) 1
Presented On : 05/07/2007 Registered On : 05/07/2007 Bench Category : SINGLE BENCH District : VADODARA Case Originated From: THROUGH ADVOCATE Listed : 5 times Stage Name : FOR ORDERS Act - TAXATION LAWS (CONTINUATION AND VALIDATION OF RECOVERY PROCEEDINGS) ACT, 1964
Office Details
S. No.	Filing Date		Document Name	Advocate Name					Court Fee on Document	Document Details
1	15/08/2008		DOCUMENT	RULE SERVED for RESPONDENT(s) 1					-	RULE SERVED:1
Court Proceedings
S. No.	Notified Date		CourtCode	Board Sr. No.			Stage		Action	Coram
1	14/07/2008		1	-			FOR ORDERS		NOTICE	· HONOURABLE THE CHIEF JUSTICE Y.R.MEENA · HONOURABLE MR.JUSTICE J.C.UPADHYAYA
Available Orders
S. No.	Case Details	Judge Name				Order Date		CAV			Judgment/Order
1	TAX APPEAL/51/2008	· HONOURABLE THE CHIEF JUSTICE Y.R.MEENA · HONOURABLE MR.JUSTICE J.C.UPADHYAYA				09/05/2008		N			ORDER
2	TAX APPEAL/51/2008	· HONOURABLE THE CHIEF JUSTICE Y.R.MEENA · HONOURABLE MR.JUSTICE J.C.UPADHYAYA				05/03/2008		N			ORDER

GLOBAL ECONOMIC SCENARIO AN OVERVIEW

Four years after the eruption of the global financial crisis, the world economy is still struggling to recover and during the Y 2012 the global economic growth weakened further. A growing number of developed countries have fallen into double-dip depression and those in severe sovereign debt distress have moved even deeper into recession. These economies have been caught in a downward spiral caused by high unemployment, weak aggregate demand compounded by fiscal austerity, high public debt burdens and financial sector fragility.

Many European economies are already in recession. In Germany output slowed down significantly, while France is on a stagnation trail. A number of new policy initiatives taken by the Euro area authorities during Y 2012, including the Outright Monetary Transaction (OMT) programme and steps toward greater fiscal integration as well as co-ordinated financial supervision and regulation, helped to address some of the deficiencies in the original design of the Economic and Monetary Union (EMU). Significant as they may be, these measures are still being counteracted by other policy stances, fiscal austerity in particular, and are not sufficient to take the economies out of the vicious circle and restore output and employment growth in the short run. As a result Europe is faced with a negative growth of 0.5 % during Y 2012.

The US economy weakened notably during Y 2012, notwithstanding the nascent signs of recovery shown by the beleaguered housing sector. Initiatives such as the new round of Quantitative Easing (QE) from the US Federal Reserve, whereby monetary authorities will continue to purchase mortgage backed securities until the employment situation improves substantially, is expected to extend support to the signs of recovery. However the lingering uncertainties about the fiscal stance continue to restrain growth of business investment.

The economic growth during Y 2012 in Japan was up from a year ago, mainly driven by reconstruction works and recovery from the earthquake related disasters of Y 2011. The government also took measures to stimulate private consumption. However exports faced strong head winds from the slowdown in global demand as well as appreciation of the Yen.

In Asian Region, the growth engines China and India both shifted to low gear and the result was evident in the form of lukewarm growth signs. While in China a significant deceleration in exports has been a key factor for the slowdown, the effects of policy tightening in the previous two years which led to marked softening in domestic investment, also lingered.

INDIAN ECONOMY A PERSPECTIVE

Closer home, the Indian economy has been slowing down since Y 2011 mainly due to policy paralysis from the Government of India on one side and on the other side the monetary tightening pursued by Reserve Bank of India, as a perceived measure to contain inflation. However during September 12, the Government tried to kick start the economy by signalling its determination to pursue pending economic reforms including FDI in Multi-Brand retail and Civil Aviation as well as partial facing out of fuel subsidies.

The growth estimates for Y 2012-13 project agricultural and allied activities to grow at only 1.8% as against 3.6% during Y 2011-12.

Manufacturing growth is also expected to drop to 1.9% during this fiscal when compared to 2.7% of the previous year.

According to advance estimates, the services sector including finance, insurance, real estate and business services is expected to grow by 8.6% this fiscal and construction by 5.9% as compared to 11.7% and 5.6% respectively in the previous year.

Even in other sectors such as Trade, Hotel, Transport and Communication, the growth estimates this fiscal is expected to be lower than the previous year.

All in all, the Indian economy is expected to grow about 5% during Y 2012-13 as against 6.5% of previous fiscal year.

REVIEW OF COMPANYS OPERATIONS

The above situation created a sure shot recipe for tumultuous times in the global economy, which left an adverse financial impact on most of the businesses worldwide.

However they are pleased to share that even during such volatile and trying times, the Company was able to buck the trend and post not only a very impressive but also its best ever performance during the year.

One of the main factors that contributed to the impressive performance during the year was the favorable market conditions for SHS arising out of the lower global availability of the product which helped us not only to significantly improve their sales volumes together with same price advantage.

Focussed efforts by the Company to widen the customer base and increase sales volumes both in India and abroad for all products, along with debottlenecking /increase of capacities for various products continued to improving their overall performance.

The well tested business model of spreading the business across a wide range of end use segments as well as geographical markets in order to dampen the impact of turbulence in business environment continued to support the Company.

During the year the Company was adept at placing itself in the right place at the right time in order to take advantage of the opportunities that the markets offered while remaining focused on controlling costs and improving the business processes.

This not only helped the Company to further strengthen its position as a market leader in India for most of its product, but also helped it significantly enhance its global presence.

The commissioning and start of production of the Companys new Zinc Oxide facility at Ekalbara not only helped to improve its self-sufficiency in capacity of Zinc Oxide manufacture but also helped to improve the cost competitiveness through improvement in cost of manufacture of the product.

The net result was that the Company was able achieve a robust top line growth of 25 % to reach a turnover of Rs.5844.000 Millions.

As regards exports business, despite turbulence in the global business environment the Company market reach across the world could be leveraged to make a big leap of 22% in growth to clock an export turnover of Rs.1935 million (US $ 35.96 Million) While the raw material prices remained volatile throughout the year, the Company could manage to pass on more than the increase in raw material cost due to favourable market conditions.

The Company continued with its efforts to optimise the bought out costs, through improvement in raw material efficiencies, containment of raw material prices, conserving energy, optimisation of overheads etc. during the year.

RandD efforts aimed at process improvements as well as improvement in raw material and energy efficiencies were pursued in right earnest.

OUTLOOK

It appears that the significant headwinds that restrained global growth during the Y 2012 has begun to dissipate.

The financial market instability and currency weakness that plagued the Euro zone have been significantly reversed alongside the strategic support provided by the European Central Bank and European Union member states, and the initial progress made in redressing the structural budgetary and competitive deficiencies in many of the southern peripheral nations looks positive. Even so, the Euro zone remains in the grip of recession, with both Germany and especially, France still having trouble generating sufficient take off velocity. The renewed strengthening of Euro shall also work against a faster revival of exports and corporate revenues.

Improving sentiment regarding US prospects has been reinforced by Washingtons compromise on taxes reached at the turn of the year, and more recently, Congressional leaders who agreed to postpone raising the debt ceiling until May 2013. While US politicians have begun addressing the countrys significant fiscal shortcomings, they agreed to raise taxes on the wealthy and roll back the two-year 2 % point reduction in payroll taxes for all Americans. Taking another bite out of US pocket books will be the higher taxes on dividends and capital gains, in addition to Obama cares health tax levy. The combined fiscal drag undoubtedly will leave its mark on the US economys performance, though there are a number of important sectors that appear to be generating more sustainable momentum. Strengthening employment conditions a function of revitalized manufacturing and energy production are unleashing pent-up customer demand and underpinning a rebound in housing-related activity. Business investment is expected to keep pace, highlighted by the strengthening trend in capital goods orders.

The growth outlook for Japan for Y 2013 is an expansion of 1.2%, backed up by a sizable stimulus package along with easing of monetary policy as well as support from a pick up in external demand.

The Chinese economy is rebounding, with evident signs of revival in house hold spending, investment and exports. The real GDP growth increase from 7.4% in Q3 2012 to 7.9% during Q4 2012 point to a growth rate for Y 2013 of 8.1%

The Indian economy appears to be constrained by three factors- high fiscal deficit, slow growth and high inflation. Poor infrastructure, low growth in agriculture and industrial activities and the gap in energy supply demand is seen as the key hurdles for growth. However positive impact of a partial global recovery along with recent government policies including steps to open up FDI in Retail as well as Civil Aviation and de-regulation of fuel prices, is expected to fuel growth. Focus of the government is on reducing inflation through increase in food production and better infrastructure to reduce agriculture waste and reducing the fiscal deficit from 5.3% in the current fiscal to 4.8 % next year through curtailing expenditure and increasing diesel prices. In the above background the projection for growth for the Y 2013-14 is pegged at 6.1 - 6.7%

The key end use segments of the Company such as Textile, Rubber, Paint and Paper etc. are more domestic business oriented and the slower growth in the Indian economy is sure to leave its mark on business prospects of these segments. Also the appreciation in INR can impact the export competitiveness of these segments.

The Textile segment in India is facing turbulent times with Denim Industry facing severe drop in exports on account of weak global demand. However the muted global demand for cotton along with surplus production is expected to keep cotton prices stable and range bound during Y 2013. Stable cotton prices would help spinning mills to improve their margins and streamline inventory buying. However increase in labour, power and fuel prices are a matter of concern and the overall growth projections for Textile segment is pegged from negative to stable.

Regarding Rubber and Tyre segment, subdued OEM demand, modest replacement demand and relatively muted exports are expected to dampen the growth prospects during Y 2013-14. However the positives are the drop in raw material prices mainly that of Natural Rubber which has seen a steady decline during last 18 months and also other inputs which are largely crude dependant having softened with crude prices. While this is

expected to shore up the bottom line, the falling demand is expected to play spoilsport.

The Indian Paper industry which forms only 1.6 % of the Global Paper Industry largely stands fragmented. The challenges faced by the Indian paper industry are insufficient availability of raw material, need to modernise the plants, improve productivity and build new capacities. Cheap imports from China especially of New Print is adversely impacting the growth prospects of Indian paper Industry.

The Indian Paint Industry is segregated into Decorative and Industrial/ Protective Coating segments, with Decorative being the dominant one. The Industrial and Protective Coatings segment where the companys products are consumed, has its growth prospects linked to Industrial and Infrastructure expansion. With the Governments focus on Infrastructure Development and the GDP growth expected to accelerate Industrial expansion, the growth prospects of this segments look positive during the coming year.

The fortunes of Jaggery segment is linked to the sugar cane crop in the country and the drought like situation prevailing in various Jaggery regions of the country along with the dynamics of monsoon can influence the growth prospects of this segment.

In the above background, the Company feels that its markets both in India and overseas have started showing signs of fatigue and a slowdown in the market can lead to accelerated competition resulting into pressure on prices. The prices of most of the key raw materials are also showing an increasing trend.

The Companys focus on improvements in efficiencies in manufacturing as well as business processes, cost reduction in all spheres of operations, optimizing utlisation of resources, maximum capacity utilization of all plants etc. shall continue during the forthcoming year.

Areas that can help to further strengthen their bottom line are improvement in Zinc Valorisation, reduction in waste generation and energy conservation As the future beckons us with its share of challenges and opportunities, they need to keep their spirits high, mind poised and skill honed to embrace the future with open arms and make the best of all situations that they come across.

While the past laurels rest lightly on their shoulders, let us look to the future hoping for the best and preparing for the worst.

Success is a lousy teacher. It seduces even smart people to think that they cant lose

FINANCE

During the year, the Company continued its focus on prudent working capital management, which helped to ensure that the average outstanding receivables as well as the coverage for inventory and advances were significantly lower than the previous year, despite increase in the level of activities.

On account of healthy generation of cash, the Company was in a position to fund its Working Capital, Capex and other requirements entirely through the internal accruals.

The year-end cash surpluses also registered a significant increase which were parked in Fixed Deposits as well as Liquid Plans of Mutual Funds.

The Companys rating with CRISIL stands at P1+ (indicating very strong safety regarding timely payment) on the Commercial Paper Program of the Company as well as Packing Credit, Letter of Credit and Bank Guarantee components of working capital facilities. On the Cash Credit component, the rating stands at AA/Stable (indicating high safety regarding timely payment)

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.63.06
UK Pound	1	Rs.101.15
Euro	1	Rs.84.95

INFORMATION DETAILS

Information Gathered by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		68

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.