MIRA INFORM REPORT

Report Date :

07.08.2014

IDENTIFICATION DETAILS

Name :	D C W LIMITED
Registered Office :	No.2, Guest House, Dhrangadhra – 363315, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.01.1939
Com. Reg. No.:	04-000748
Capital Investment / Paid-up Capital :	Rs. 419.582 Millions
CIN No.: [Company Identification No.]	L24110GJ1939PLC000748
TAN No.: [Tax Deduction & Collection Account No.]	AHMD02579D
PAN No.: [Permanent Account No.]	AAACD0559N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Chemicals and also Sale of Power.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track record. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. 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 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.

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	India Ratings and Research
Rating	Long Term Rating = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	01.04.2014

Rating Agency Name	India Ratings and Research
Rating	Short Term Rating = A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	01.04.2014

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 31-03-2014.

INFORMATION DECLINED

Management Non Co-operative (91-22-22871914)

LOCATIONS

Registered Office/ Factory 1 (Soda Ash Division) :	No.2, Guest House, Dhrangadhra – 363315, Gujarat, India
Tel. No.:	91-2754-282967/ 283244
Fax No.:	91-2754-283245
E-Mail :	legal@dcwltd.com office@dhg.dcwltd.com
Website :	http://www.dcwltd.com
Head/ Corporate Office :	“Nirmal”, 3^rd Floor, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22871914/ 16
Fax No.:	91-22-22028838
E-Mail :	ho@dcwltd.com
Factory 2 (Caustic Soda Division and PVC Division) :	Arumuganeri P.O., Sahupuram – 628202, Tamilnadu, India
Tel. No.:	91-4639-280231/ 280439
Fax No.:	91-4639-280611/ 280016
E-Mail :	office@shpm.dcwltd.com
Factory 3 (Salt Works) :	Kuda Gujarat, India
Branch Office 1 :	Indra Palace, 1^st Floor, H – Block, Connaught Circus, New Delhi – 110001, India
Tel. No.:	91-11-23714956/ 23320392
Fax No.:	91-11-23731141
E-Mail :	office@del.dcwltd.com
Branch Office 2 :	358, Anna Salai, Thousand Lights, Chennai – 600006, Tamilnadu, India
Tel. No.:	91-44-28292082/ 28292752
Fax No.:	91-44-28295766
E-Mail :	office@chn.dcwltd.com

DIRECTORS

As on 31.03.2014

Name :	Dr. Shashi Chand Jain
Designation :	Chairman and Managing Director
Qualification :	Ph. D (Economics)
Date of Appointment :	01.04.1969
Name :	Mr. Pramod Kumar Jain
Designation :	Managing Director
Qualification :	B.A. (Hon.) Economics
Date of Appointment :	01.04.1969
Name :	Mr. Bakul Jain
Designation :	Managing Director
Qualification :	B.Com., MBA
Date of Appointment :	01.09.1984
Name :	Mr. Mudit Jain
Designation :	Executive Director
Qualification :	B. Com, MBA
Date of Appointment :	01.04.1989
Name :	Mr. Sodhsal Singh Dev of Dharnagadhra
Designation :	Director
Name :	Ms. Sujata Rangnekar
Designation :	Director
Name :	Mr. D. Ganapathy
Designation :	Director
Name :	Mr. Vivek Jain
Designation :	Managing Director
Name :	Mr. Salil Kapoor
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	41583400	20.09
Bodies Corporate	53694486	25.94
Sub Total	95277886	46.02
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	95277886	46.02
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	18705	0.01
Financial Institutions / Banks	169736	0.08
Insurance Companies	8516415	4.11
Foreign Institutional Investors	18445377	8.91
Any Others (Specify)	42225	0.02
Foreign Bank	42225	0.02
Sub Total	27192458	13.14
(2) Non-Institutions
Bodies Corporate	8178135	3.95
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	54542376	26.35
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	13451624	6.50
Any Others (Specify)	8374724	4.05
Clearing Members	565942	0.27
Overseas Corporate Bodies	5760218	2.78
Trusts	76850	0.04
Non Resident Indians	1971714	0.95
Sub Total	84546859	40.84
Total Public shareholding (B)	111739317	53.98
Total (A)+(B)	207017203	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	2773750	0.00
Sub Total	2773750	0.00
Total (A)+(B)+(C)	209790953	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Ashish Jain	36,11,318	1.72	1.72
2	Ashish Jain	2,54,750	0.12	0.12
3	B J Holdings Private Limited	16,000	0.01	0.01
4	Bakul Jain	9,60,447	0.46	0.46
5	Bakul Jain	1,17,025	0.06	0.06
6	Bakul Jain	1,70,820	0.08	0.08
7	Bharati Jain	1,19,335	0.06	0.06
8	Bharati Jain	5,01,135	0.24	0.24
9	Canvas Shoe Co. (Goa) Private Limited	830	0.00	0.00
10	Cashco Holdings Private Limited	17,750	0.01	0.01
11	Crescent Holdings and Enterprises Private Limited	11,37,000	0.54	0.54
12	Dhrangadhra Trading Company Private Limited	11,58,750	0.55	0.55
13	DPB Holdings Private Limited	13,500	0.01	0.01
14	Durgavati Jain	21,13,159	1.01	1.01
15	Durgavati Jain	11,28,832	0.54	0.54
16	Florida Holdings and Trading Private Limited	76,750	0.04	0.04
17	Kalpataru Botanical Gardens Private Limited	22,500	0.01	0.01
18	Malti Bhindi	50,000	0.02	0.02
19	Meeta Jain	22,335	0.01	0.01
20	Meeta Jain	7,56,385	0.36	0.36
21	Mudit Jain	25,00,498	1.19	1.19
22	Namita P Jain	13,61,945	0.65	0.65
23	Neera Jain	19,23,960	0.92	0.92
24	Nitish Jain	2,21,568	0.11	0.11
25	Paulomi Jain	4,80,085	0.23	0.23
26	Pramod Kumar Jain	7,74,100	0.37	0.37
27	Pramod Kumar Jain	19,90,875	0.95	0.95
28	Pramod Kumar Jain	19,76,000	0.94	0.94
29	Premchand Jain	19,20,540	0.92	0.92
30	Rima Shrey Ansh Jhaveri	59,511	0.03	0.03
31	Saatvik Jain	2,52,255	0.12	0.12
32	Saatvik Jain	11,48,363	0.55	0.55
33	Sahu Brothers Private Limited	5,01,48,156	23.90	23.90
34	Sahu Cylinders and Udyog Private Limited	11,03,250	0.53	0.53
35	Samarth Jain	34,000	0.02	0.02
36	Satyawati Jain	1,09,000	0.05	0.05
37	Shashi Chand Jain	16,18,648	0.77	0.77
38	Shivantika Jain	4,835	0.00	0.00
39	Sonalika Jain	8,71,941	0.42	0.42
40	Usha P Jain	37,20,545	1.77	1.77
41	Vandana Jain	71,20,206	3.39	3.39
42	Varsha Jain	11,44,580	0.55	0.55
43	Vivek Jain	18,32,449	0.87	0.87
44	Vivek Jain	6,23,935	0.30	0.30
45	Vivek Jain	88,020	0.04	0.04
	Total	9,52,77,886	45.42	45.42

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	8366415	3.99	3.99
2	Lotus Global Investments Limited	5540377	2.64	2.64
3	Mavi Investment Fund Limited	9805000	4.67	4.67
4	Cresta Fund Limited	3100000	1.48	1.48
5	Quincy Overseas Limited	5753250	2.74	2.74
	Total	32565042	15.52	15.5

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Sahu Brothers Private Limited	63,63,636	3.03
2	Vivek Jain	11,48,364	0.55
3	Saatvik Jain	11,48,363	0.55
4	Usha Jain	15,78,909	0.75
5	Durgavati Jain	15,78,909	0.75
6	Vandana Jain	9,09,091	0.43
7	Mudit Jain	9,09,091	0.43
	Total	1,36,36,363	6.50

Details of Depository Receipts (DRs)

Sl. No.	Type of Outstanding DR (ADRs, GDRs, SDRs, etc.)	No. of Outstanding DRs	No. of Shares Underlying  Outstanding DRs	Shares Underlying Outstanding DRs as % of Total No. of Shares
1	GDR		27,73,750	1.32
	Total		27,73,750	1.32

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Chemicals and also Sale of Power.

Products/ Services :

ITC Code No.	Product Descriptions
390042102	Poly Vinyl Chloride by Suspension
28151101	Caustic Soda
28362009	Soda Ash

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Punjab National Bank

· State Bank of India

· City Union Bank Limited

· ING Vysya Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG-TERM BORROWINGS
Term Loans – From Banks	3199.348	2179.177
– From Financial Institutions	2678.436	1697.869
– From NBFC	0.000	0.130
SHORT TERM BORROWINGS
Loans repayable on demand Working Capital	42.974	356.090
Line of Credit	101.349	375.630
Total	6022.107	4608.896
Long–term Borrowings LOANS – Security : Banks/ Institutions Term Loans and External Commercial Barrowings from Banks and Institutions are secured by a pari–passu first charge by way of hypothecation of movable fixed assets of the Company, including movable machinery spares, stores and further secured by mortgage on all the immovable properties of the Company situated in the states of Tamilnadu and Gujarat on first pari–passu charge basis and second charge on Current Assets. Institutions: The term loans from Institutions are secured by first charge on moveable properties and assets pertaining to windmill assets in the state of Rajasthan on specific charge basis. NBFC: Term loan from NBFC are secured by creation of charge on all the assets purchased under the loan. Short-term borrowings LOANS – Security Loans from Banks and Working Capital facilities are secured by a first charge by way of hypothecation and/or pledge of current assets, namely, stocks of materials and finished goods, consumable stores and spares including machinery spares not capitalized, bills receivable and book debts and further secured by a second charge by way of hypothecation over all of movable plant and machinery and by way of mortgage by deposit of title deeds over the immovable properties, both present and future, such mortgage to rank second to the mortgages created/to be created in favour of Term Loan Lenders viz., Banks / Financial Institutions.

Banking Relations :	---
Auditors :
Name :	V. Sankar Aiyar And Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiary Company :	DCW Pigments Limited
Entities in which key management personnel and / or their relatives have significant influence :	· Double Dot Finance Limited · Crescent Finstock Limited · Sahu Brothers Private Limited · Jain Sahu Brothers Properties Private Limited · Dhrangadhra Trading Company Private Limited · Kishco Limited · Crescent Holdings Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
325000000	Equity Shares	Rs. 2/- each	Rs.650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
209790953	Equity Shares	Rs. 2/- each	Rs.419.582 Millions

23610000 Shares were issued and allotted on preferential basis to the Promoters of the company and FII’s during 2007–2008.

13636363 Shares were issued and allotted to the promoters on conversion of warrants issued on preferential basis to Promoters group during 2011–2013

Name of Shareholder	31.03.2014
	No. of Shares	% held
Sahu Brothers Private Limited	50148156	23.90

The reconciliation of the number of shares outstanding is set out below

Particulars	31.03.2014
	No. of Shares
Equity Shares at the beginning of the year	209790953
Add : Shares issued on conversion of warrants to Promoters on preferential basis	--
Equity Shares at the end of the Year	209790953

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	419.582	419.582	406.200
(b) Reserves & Surplus	5145.182	4858.738	3840.585
(c) Money received against share warrants	0.000	0.000	18.400
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	5564.764	5278.320	4265.185
(3) Non-Current Liabilities
(a) long-term borrowings	5877.784	3877.176	2997.010
(b) Deferred tax liabilities (Net)	1159.006	1109.522	918.172
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	96.983	86.001	64.912
Total Non-current Liabilities (3)	7133.773	5072.699	3980.094
(4) Current Liabilities
(a) Short term borrowings	144.323	731.720	731.801
(b) Trade payables	3786.779	2130.803	2093.206
(c) Other current liabilities	1157.434	2074.802	1603.495
(d) Short-term provisions	113.866	192.034	93.655
Total Current Liabilities (4)	5202.402	5129.359	4522.157
TOTAL	17900.939	15480.378	12767.436
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6612.704	6635.802	6868.963
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	7179.287	4416.699	2142.680
(iv) Intangible assets under development	0.000	0.000	19.302
(b) Non-current Investments	3.239	3.239	3.239
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	173.757	126.457	332.226
(e) Other Non-current assets	110.948	110.900	186.539
Total Non-Current Assets	14079.935	11293.097	9552.949
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2036.132	2310.600	1581.913
(c) Trade receivables	943.108	927.974	737.674
(d) Cash and cash equivalents	34.128	52.319	64.231
(e) Short-term loans and advances	807.636	882.906	830.669
(f) Other current assets	0.000	13.482	0.000
Total Current Assets	3821.004	4187.281	3214.487
TOTAL	17900.939	15480.378	12767.436

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	13255.521	13277.996	11841.196
		Other Income	13.142	28.883	58.003
		TOTAL (A)	13268.663	13306.879	11899.199
Less	EXPENSES
		Cost of Materials Consumed	6961.501	6068.089	5900.565
		Purchases of Stock-in-Trade	21.877	2.344	4.930
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(182.503)	(350.556)	(10.664)
		Excise duty on inventory differential	(20.611)	(15.847)	(4.675)
		Employees benefits expense	826.622	890.848	601.757
		Other expenses	4359.352	4198.515	4101.451
		Exceptional Items	0.000	59.020	0.000
		TOTAL (B)	11966.238	10852.413	10593.364
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1302.425	2454.466	1305.835
Less	FINANCIAL EXPENSES (D)		270.296	321.276	339.519
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1032.129	2133.190	966.316
Less/ Add	DEPRECIATION/ AMORTISATION (F)		510.192	529.088	509.729
	PROFIT BEFORE TAX (E-F) (G)		521.937	1604.102	456.587
Less	TAX (H)		143.143	555.217	149.900
	PROFIT AFTER TAX (G-H) (I)		378.794	1048.885	306.687
	EARNINGS IN FOREIGN CURRENCY
		Export on FOB basis	2233.557	4176.148	2532.887
		Other Earnings	0.464	1.199	2.470
	TOTAL EARNINGS		2234.021	4177.347	2535.357
	IMPORTS
		Raw Materials	6835.453	6282.942	4346.840
		Fuel Oil/ Coal	1123.650	1506.688	1756.070
		Stores & Spares	8.681	81.952	53.544
		Capital Goods	16.479	392.517	4.127
	TOTAL IMPORTS		7984.263	8264.099	6160.581
	Earnings Per Share (Rs.)		1.81	5.05	1.55

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	2.85	7.88	2.58
Net Profit Margin (PBT/Sales)	(%)	3.94	12.08	3.86
Return on Total Assets (PBT/Total Assets}	(%)	4.87	14.50	4.31
Return on Investment (ROI) (PBT/Networth)		0.09	0.30	0.11
Debt Equity Ratio (Total Debt /Networth)		1.08	0.87	0.87
Current Ratio (Current Asset/Current Liability)		0.73	0.82	0.71

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	406.200	419.582	419.582
Reserves & Surplus	3840.585	4858.738	5145.182
Net worth	4246.785	5278.320	5564.764
long-term borrowings	2997.010	3877.176	5877.784
Short term borrowings	731.801	731.720	144.323
Total borrowings	3728.811	4608.896	6022.107
Debt/Equity ratio	0.878	0.873	1.082

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	11841.196	13277.996	13255.521
		12.134	(0.169)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	11841.196	13277.996	13255.521
Profit	306.687	1048.885	378.794
	2.59%	7.90%	2.86%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current maturities of long term borrowings
– From Banks	519.587	656.671	590.692
– From Financial Institutions	170.556	170.556	152.300
– From NBFC	0.130	0.162	0.000
Total	690.273	827.389	742.992

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	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

NATURE OF OPERATIONS

Subject a public limited company, together with its subsidiary, operates as an integrated Chemical Manufacturing organization.

The Parent Company’s shares are listed for trading on the National Stock Exchange and the Bombay Stock Exchange in India and its Global Depository Receipts [covering equity shares of Parent Company] are listed on the Luxembourg Stock Exchange.

OPERATIONS:

The sales for the year are Rs.13255.500 Millions compared to Rs.13278.000 Millions in the previous year. The Gross Profit for the year (before depreciation) is Rs.1032.100 Millions against Rs.2133.200 Millions in previous year. The profit before tax amounted to Rs.521.900 Millions as against Rs.1604.100 Millions in the previous year. The profit after provision of current tax is Rs.428.300 Millions against Rs.1240.200 Millions, of last year and profit after deferred tax is Rs.378.800 Millions against Rs.1048.900 Millions of last year, Deferred Tax is only a provision as per accounting guidelines and not an outflow.

Lower realization on export of Synthetic Rutile has largely affected decline in profits.

Exports:

The Company’s exports are Rs. 2233.600 Millions as compared to Rs. 4176.100 Millions in the previous year. This reduction in Export Turnover is on account of decrease in realization on Synthetic Rutile.

Divisionwise Performance:

a) PVC Division:

The turnover of the division is Rs.5330.400 Millions as compared to Rs.4312.900 Millions in the previous year, an increase in turnover by 24%. The increase in turnover is on account of better realization on PVC. The demand for PVC continues to show positive growth. The Government has identified irrigation, power and infrastructure, as thrust areas and increased activity in these sectors are likely to boost demand of PVC Resin.

b) Caustic Soda Division:

The turnover of the division is Rs. 5330.400 Millions as compared to Rs.6978.000 Millions in the previous year, a decrease of 24%. The reduction in turnover of the division is mainly on account of decrease in realization on Synthethic Rutile.

c) Soda Ash Division:

The turnover of the division is Rs.1776.600 Millions as compared to Rs.1835.500 Millions in the previous year. The decrease in turnover in the division is due to reduction in quantity of the product sold manufactured by the devision.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Outlook:

The Company has diversified operations with three business segments viz. PVC, Chloro Alkali and Soda Ash. It is thus reasonably protected from the vagaries of individual business cycles of these products.

PVC Division:

The Company, one of the country’s five producers of PVC resin, has maintained its market share of nearly 7%. Proposed implementation of Anti-dumping duty on PVC resin imports from China, USA, Mexico, European Union, Indonesia will protect the domestic industry against dumping of PVC resin from these countries. Also automation programme in this unit will help the company in reducing cost and increasing production on this division.

Caustic Soda Division:

The Company continues to be a major player in South India with a market share of approximately 20%. The demand for caustic soda is expected to grow at a steady rate, specially with increased demand from alumina manufacturers. The company has captive use of HCL and Chlorine which helps to maintain Caustic Production at full level.

Soda Ash Division:

The Soda Ash Industry continues to grow at a compounded rate of 4% - 5% per annum and this trend is expected to continue. Antidumping duty imposed on import of Soda Ash from countries like Iran, Pakistan, China, Ukraine, Kenya, European Union and the US by Govt., of India, will protect the industry against dumping of Soda Ash from these countries.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10485648	25/03/2014	750,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	C00745091
2	10466531	19/12/2013	400,000,000.00	DCB BANK LIMITED	CREDIT ADMINISTRATION DEPARTMENT, RELIEF ROAD. BRANCH, RELIEF ROAD, AHMEDABAD, GUJARAT -380001, INDIA	B92112390
3	10448917	06/09/2013	750,000,000.00	ICICI BANK LIMITED	LANDMARK, RACE COURSE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390007, INDIA	B84951565
4	10448104	05/09/2013	400,000,000.00	STATE BANK OF TRAVANCORE	112-115, TULSIANI CHAMBERS, WEST WING,, 1ST FLOOR, FREE PRESS JOURNAL MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B84603695
5	10411467	21/03/2014 *	1,250,000,000.00	PUNJAB NATIONAL BANK	PNB HOUSE, SIR P. M. ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	C03608775
6	10412009	14/03/2013	3,000,000.00	AXIS BANK LIMITED	RAC AHMEDABAD, CV/ CE DEPARTMENT, 4TH FLOOR, SHIVALIK ISHAN, NR. C. N. VIDHYALAYA, AMBAWADI, AHMEDABAD, GUJARAT - 380006, INDIA	B70825344
7	10386950	02/11/2012	1,267,184.00	AXIS BANK LIMITED	RAC AHMEDABAD, CV/ CE DEPARTMENT, 4TH FLOOR, SHIVALIK ISHAN, NR. C. N. VIDHYALAYA, AMBAWADI, AHMEDABAD, GUJARAT - 380006, INDIA	B62203484
8	10369079	20/06/2012	2,940,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B45104627
9	10344885	12/02/2013 *	400,000,000.00	LAKSHMI VILAS BANK LIMITED	42-46, PLOT NO.427, SHANTHINATH BHUVAN NO.2, DR. AMBEDKAR ROAD, MATUNGA (CR), MUMBAI, MAHARASHTRA - 400019, INDIA	B69684009
10	10340251	12/02/2013 *	750,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B69357457
11	10340283	06/03/2012	750,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B34167700
12	10312325	12/02/2013 *	2,000,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B68845353
13	10288278	21/04/2012 *	250,000,000.00	ING VYSYA BANK LIMITED	MITTAL TOWERS,A-WING,GROUND FLOOR, 210 NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B39416383
14	10269311	10/02/2011	802,500,000.00	INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED	INDIA HABITAT CENTRE1ST FLOOR EAST COURT CORE, 4A LODHI ROAD, NEW DELHI, DELHI - 110003, INDIA	B06264386
15	10215515	07/04/2010	1,651,000.00	L AND T FINANCE LIMITED	L&T HOUSE,, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	A84262179
16	10066811	13/06/2008 *	850,000,000.00	ICICI BANK LIMITED	LANDMARK, RACE COURSE CIRCLE,, VADODARA, GUJARAT -  390007, INDIA	A40969305
17	10060117	03/07/2007 *	600,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	A19349836
18	10032970	29/06/2007 *	750,000,000.00	STATE BANK OF PATIALA	ATLANTA, 1ST FLOOR, JAMNALAL BAJAJ MARG, NARIMAN  POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A18944702
19	10028295	29/06/2007 *	1,050,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, 23, J. N. H. MARG, VOLTAS HOUSE, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	A18960328
20	90102853	16/06/2005 *	200,000,000.00	ING VYSYA BANK LIMITED.	MITTAL TOWER 'A' WING, GROUND FLOOR 210; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400052, INDIA	-
21	90103799	23/02/2004	200,000,000.00	ING VYSYA BANK LIMITED.	MITTAL TOWER 'A' WING, GROUND FLOOR 210; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400052, INDIA	-
22	90102829	16/06/2005 *	66,500,000.00	CITY UNION BANK LIMITED.	402 ; JAIN ARCADE ; 1 FLOOR, 14 ROAD JUNCTION KHAR, MUMBAI, MAHARASHTRA - 400052, INDIA	-
23	90320745	13/06/1997	429,600,000.00	ING BANK	193 BACKBAY RECL, NARIMAN POINT, MUMBAI, MAHARASHTRA, INDIA	-
24	90102794	16/06/2005 *	332,000,000.00	STATE BANK OF INDIA	CORPORATE A/C; GROUP - CENTRAL, CENTRAL OFFICE;  EXPRESS TOWER; 20 .FLOOR NARIMAN, MUMBAI, MAHARASHTRA - 400021, INDIA	-
25	90103686	16/06/2005 *	111,000,000.00	STATE BANK OF SAURASHTRA	SHARDA SADAN; 11; S.A. BRELVI ROAD; FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	-
26	90320419	25/07/1995	150,000,000.00	INDUSIND BANK LIMITED.	DADA SAHEB BHADKAMKAR MARG, MUMBAI, MAHARASHTRA, INDIA	-
27	80003986	21/03/2014 *	4,463,800,000.00	PUNJAB NATIONAL BANK	PNB HOUSE, SIR P. M. ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	C03609245

* Date of charge modification

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Vehicle

· Office Equipments

· Furniture and Fixture

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.61.36
UK Pound	1	Rs.103.44
Euro	1	Rs.81.96

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
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	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.