MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	GARWARE WALL ROPES LIMITED
Registered Office :	Plot No.11, Block D-1, MIDC, Chinchwad, Pune – 411 019, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.04.1976
Com. Reg. No.:	11-018939
Capital Investment / Paid-up Capital :	Rs.219.723 millions
CIN No.: [Company Identification No.]	L25209MH1976PLC018939
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08397E MUMG08396D
PAN No.: [Permanent Account No.]	AAACG1377P
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Selling of Various Products such as Ropes, Twine, Yarn, Fishnet, Other Nets and Technical Textiles and also Providing Solution to the Infrastructure Industries which include Coastal Protection, Land Filling etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 7850000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having good track record. Financial position of the company is sound. Fundamentals of the company are healthy. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based limit: “A+”
Rating Explanation	Adequate degree of safety. It carry low credit risk.
Date	November 2013

Rating Agency Name	ICRA
Rating	Non-fund based limit: “A1+”
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	November, 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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-20-30780195)

LOCATIONS

Registered Office/ Factory 1 :	Plot No.11, Block D-1, MIDC, Chinchwad, Pune – 411019, Maharashtra, India
Tel. No.:	91-20-30780000/ 30780195
Fax No.:	91-20-30780350/ 30780341
E-Mail :	sales@garwareropes.com secretarial@garwareropes.com cpurandare@garwareropes.com hr@garwareropes.com
Website :	www.garwareropes.com
Factory 2 :	Plot No.C-1 and B-226, MIDC, Wai, District Satara – 412803, Maharashtra, India
Tel No.:	91-2167-308301/ 02
Factory 3 :	Plot No.75, 80, 81 and 86, Danudyog Sahakari Sangh Limited, Piparia, Amli – 396 230, Silvassa, India
Tel No.:	91-260-2640867
Mumbai Office 1 :	Chowpatty Chambers, Sandhurst Bridge, Mumbai – 400007, Maharashtra, India
Tel No.:	91-22-22634696/ 97
E-Mail :	mum_admin@garwareropes.com
Mumbai Office 2 :	39, S.K. Hafizuddin Marg, Byculla, Mumbai – 400008, Maharashtra, India
Tel No.:	91-22-23091164/ 68
E-Mail:	mum_accounts@garwareropes.com
Foreign Branch Office :	Narrows Reach Business Centre, 6102 North 9^th Street, Unit # 500, Tacoma, WA 98406, U.S.A.
Tel. No.:	001-25356 40217
E-Mail:	gwrlusa@garwareropes.com
Overseas Office 1:	Tacoma, WA 98406-2099, USA
Tel. No.:	253-564-0217
Fax No.:	253-564-0237
E-Mail :	gwrlusa@garwareropes.com
Overseas Office 2 :	Milton Keynes, MK9 1LH, United Kingdom
Tel. No.:	+44 1908 424424-25 Extn: 4424/25
Overseas Office 3 :	North Sydney – 2060, Australia
Tel. No.:	0061 2 9957 44 66/67
Fax No.:	0061 2 99572929
E-Mail :	lele@bigpond.com.au

DIRECTORS

As on 31.03.2014

Name :	Late Mr. B.D. Garware
Designation :	Founder Chairman
Name :	Mr. R.B. Garware
Designation :	Chairman Emeritus
Date of Birth/ Age :	71 Years
Qualification :	Educated in a Public School called Dulwich College, U.K., Graduated with Honors Degree in Moral Sciences and Law from Jesus College, Cambridge, Brief Course in French at Sorbonne in Paris.
Date of Appointment :	01.11.2006
Name :	Mr. V.R. Garware
Designation :	Chairman and Managing Director
Date of Birth/ Age :	40 Years
Qualification :	Graduate Cum Laude in BSc Economics (Specialisation in Finance) from Wharton Business School of University of Pennsylvania, U.S.A.
Date of Appointment :	07.12.1995
Name :	Ms. Diya Garware Ibanez
Designation :	Director
Name :	Ms. M.V. Garware
Designation :	Director
Date of Appointment:	16.08.2014
Name :	Mr. R.M. Telang
Designation :	Director
Name :	Mr. S.P. Kulkarni
Designation :	Director
Name :	A. D. Goeal
Designation :	Director
Date of Appointment :	16.08.2014

KEY EXECUTIVES

Name :	R. H. Yadav
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3632712	16.60
Bodies Corporate	7430720	33.96
Sub Total	11063432	50.56
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11063432	50.56
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1300	0.01
Financial Institutions / Banks	2854	0.01
Insurance Companies	909365	4.16
Foreign Institutional Investors	936999	4.28
Sub Total	1850518	8.46
(2) Non-Institutions
Bodies Corporate	1000778	4.57
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4841564	22.13
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2030133	9.28
Any Others (Specify)	1095635	5.01
Non Resident Indians	149135	0.68
Trusts	946500	4.33
Sub Total	8968110	40.98
Total Public shareholding (B)	10818628	49.44
Total (A)+(B)	21882060	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	21882060	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Various Products such as Ropes, Twine, Yarn, Fishnet, Other Nets and Technical Textiles and also Providing Solution to the Infrastructure Industries which include Coastal Protection, Land Filling etc.

Products :

Item Code No. (ITC Code)	Product Description
5607.49	Ropes and Twine
5402.59	PPMF Yarn
5608.11	Fishnets

Exports :

--

Imports :

--

Terms :

Selling :

--

Purchasing :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

Customers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

No. of Employees :

Not Divulged

Bankers :

Bank Name:	NOT DIVULGED
Branch:
Name of the Person (with Designation):
Contact Number:
Name of Account Holder:
Account Number:
Account Since (Date/ Year of A/c Opening):
Average Balance Maintained (Optional):
Credit Facilities Enjoyed (CC/OD/Term Loan):
Account Operation:
Remarks:

· Bank of India

· Bank of Baroda

· DBS Bank Limited

· Citibank NA

· HDFC Bank Limited

· IDBI Bank Limited

· HSBC Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
From Banks and Financial Institutions
IDBI Bank Term Loan under TUFS
Balance as per reporting date	5.270	26.350
Current Maturity transfer to other Current Liability	(5.270)
CITI Bank ECB Term Loan
Balance as per reporting date	195.678	247.758
Current Maturity transfer to other Current Liability	(77.829)	(70.788)
HDFC Bank Rupee Term Loan
Balance as per reporting date	325.948	565.775
Current Maturity transfer to other Current Liability	(208.099)	(258.535)
SHORT TERM BORROWINGS
Loans repayable on demand From Banks
Cash Credit, Rupee Loan and Rupee Packing Credit	28.003	266.278
Packing Credit in Foreign Currency Loan	289.609	281.096
Total	553.310	1057.934
PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand From Bank
Packing Credit in Foreign Currency Loan	0.000	137.017
Loan from Promoter*	132.247	0.000
Total	132.247	137.017

NOTE

LONG TERM BORROWINGS

l) lDBl Bank Term Loan under TUFS Loan is repayable in 20 quarterly instalments of Rs. 5.270 Millions each along with interest from 31^st July, 2009. This loan is secured by way of charge on specific assets financed by the Bank.

2) ClTl Bank ECB Term Loan is repayable in 16 quarterly installments of Rs. 15.625 Millions each along with interest from 25th December' 2012. This loan is secured by way of hypothecation of the whole of the Movable Fixed Assets comprising Plant and Machinery Computers, Furniture and Fixtures, Machinery Spares, Tools and Accessories and other Assets both present and future on first charge on pari-passu basis with others.

3) HDFC Bank Rupee Term Loan is repayable in 12 quarterly instalments of Rs. 20.833 Millions each along with interest from 4th January, 2012. This loan is secured by way of hypothecation of the lmmovable Properties including plant and Machinery Spares, Tools and Accessories and other Movables both present and future on first charge on pari-passu basis with others.

SHORT TERM BORROWINGS

The above Secured Loans are availed from Consortium Bankers, viz., Bank of lndia, Bank of Baroda, lDBl Bank Limited, HDFC Bank Limited, ClTl Bank N. A., DBS Bank Limited and The Hongkong and Shanghai Banking Corporation Limited, are secured by a first charge, pari passu, interse by way of hypothecation of the Company's Current Assets, viz. raw materials, stock-in-process, semi-finished goods, finished goods, stores and spares not relating to Plant and Machinery bills receivable and book debts and other movables (except for Plant and Machinery secured by way of second charge), both present and future. Out of above Consortium Bankers, the loans from Bank of lndia and Bank of Baroda, are also secured to the extent of Rs. 617.000 Millions by Second Charge over the Company's immoveable properties, by way of equitable mortgage, ranking pari passu, inter-se. The Cash Credit' Rupee Loan and Rupee Packing Credit (rupee and foreign currency loan) loan is repayable on demand.

* The said deposits were received from Late R. B. Garware, and the same will be repaid according to the terms of his Will.

Banking Relations :	--
Auditors :
Name :	Patki and Soman Chartered Accountants
Address :	639 Sadashiv Peth, Kumthekar Road, Pune – 411 030, Maharashtra, India
Associates Companies :	Garware Meditech Private Limited
Subsidiary / Joint Venture Companies :	Garware Environmental Services Private Limited
Enterprises Owned or Significantly influenced by Key Management Personnel or Their Relatives :	· Manmit lnvestment and Trading Company Private Limited · Garware Capital Markets Limited · Gurukupa lnvestments and Trading Company Private Limited · Sanand lnvestments and Trading Company Private Limited · Moonshine lnvestments and Trading Company Private Limited · Starshine lnvestments and Trading Company Private Limited · Sukukar Holdings and Trading Company Private Limited · Garware Utzon Cordage Limited · Garware lndus Consulting Limited · Garware lnfrastructure Private Limited · Garware Bestretch Limited · Garware Holdings Limited · Suramex Exim Private Limited · Garware Apparel Private Limited · Gartex lndustries Limited · Ramesh Trading Company · Sunita Trading Company · Diya Trading Company · Vayu Trading Company · RSDV lnvestments Private Limited · RSDV Finance and Trading Company Private Limited · Garware Securities Broking Limited · Ceebeegee lnvestments Company Private Limited · Garware Resach lnstitute · Vimlabai Garware Research lnstitute · Consolidated Agricutural and Dairy Farming Company Private Limited

CAPITAL STRUCTURE

As on 25.09.2014

Authorised Capital : Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 237.084 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs. 500.000 Millions
10000000	Unclassified Shares	Rs.10/- each	Rs. 100.000 Millions
	Total		Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21972253	Equity Shares	Rs.10/- each	Rs. 219.723 Millions

NOTE

Reconciliation of Number of Shares	As at 31.03.2014
	Number of Shares	Rs. In Millions
Equity Shares
Opening Balance	23708350	237083500
Changes during the year	(1736097)*	(17360970)
Closing Balance	21972253	219722530

*During the year 2013-14, the company has bought back 1736097 Equity Shares of Rs. 10/- each under the Buy Back Scheme (Previous Year Nil).

Details of Shareholders' holding more than 5% Shares in the Company

Particulars	As at 31.03.2014
Equity Shares
Ramesh B. Garware**	3,612,053 15.86%*
Garware Capital Markets Limited	3,453,911 15.17%

* 9.60% (Previous year 9.22%) shares are held on behalf of a partnership firm.

**V.R. Garware has informed to Company that

a) His father R.B. Garware, expired on 7^th February, 2014, has left a Will dated 6^th April, 2012.

b) The Executors of the said will have informed him in writing that the above stated shares are bequeathed to him and Executors are taking steps in getting them transmitted in his demat account.

Pending transmission of the said shares in the name of V.R. Garware, the shares in demat accounts continue to be registered in the name of R.B. Garware.

Shares allotted as fully paid up by way of Bonus Shares (during 5 years preceding 31^st march, 2014): Ni.

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	219.723	237.084	237.084
(b) Reserves & Surplus	2529.225	2429.777	2267.154
(c) 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)	2748.948	2666.861	2504.238
(3) Non-Current Liabilities
(a) long-term borrowings	117.849	244.740	420.004
(b) Deferred tax liabilities (Net)	202.501	181.436	179.896
(c) Other long term liabilities	32.653	30.564	29.783
(d) long-term provisions	15.828	16.797	14.505
Total Non-current Liabilities (3)	368.831	473.537	644.188
(4) Current Liabilities
(a) Short term borrowings	449.859	684.391	830.887
(b) Trade payables	640.751	575.658	535.263
(c) Other current liabilities	598.163	374.202	406.915
(d) Short-term provisions	1180.140	849.463	810.024
Total Current Liabilities (4)	2868.913	2483.714	2583.089
TOTAL	5986.692	5624.112	5731.515
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1450.762	1452.395	1577.691
(ii) Intangible Assets	76.117	89.010	87.392
(iii) Capital work-in-progress	74.379	3.511	33.438
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	93.346	91.695	91.196
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	114.921	108.852	94.855
(e) Other Non-current assets	10.142	16.978	7.910
Total Non-Current Assets	1819.667	1762.441	1892.482
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1268.260	1217.934	1234.346
(c) Trade receivables	1425.422	1403.656	1495.561
(d) Cash and cash equivalents	89.195	197.628	235.303
(e) Short-term loans and advances	1384.148	1042.453	873.823
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	4167.025	3861.671	3839.033
TOTAL	5986.692	5624.112	5731.515

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	6845.677	5993.680	5782.682
		Other Income	39.620	57.512	33.434
		TOTAL (A)	6885.297	6051.192	5816.116
Less	EXPENSES
		Cost of Materials Consumed	2844.069	2353.105	2270.319
		Purchase of Traded Goods	180.882	261.883	311.691
		(Increase)/Decrease in inventories of Finished Goods, Work-in-Progress and Traded Goods	60.493	31.850	(63.815)
		Employee Benefit Expense	881.536	791.559	793.604
		Operation and Other Expenses	2222.422	1970.750	1857.528
		TOTAL (B)	6189.402	5409.147	5169.327
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		695.895	642.045	646.789
Less	FINANCIAL EXPENSES (D)		161.194	144.801	166.062
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		534.701	497.244	480.727
Less/ Add	DEPRECIATION/ AMORTISATION (F)		143.933	163.244	160.192
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		390.768	334.000	320.535
Less	TAX (H)		124.149	87.262	80.478
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		266.619	246.738	240.057
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1338.795	1186.101	1039.030
Less	APPROPRIATIONS
		Transfer to General Reserve	26.700	24.700	24.100
		Proposed Final Dividend on Equity Shares	59.325	59.271	59.271
		Tax on Dividend	10.082	10.073	9.615
	BALANCE CARRIED TO THE B/S		96.107	94.044	92.986
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	3271.582	2541.456	2458.447
	TOTAL EARNINGS		3271.582	2541.456	2458.447
	IMPORTS
		Raw Materials	800.992	691.583	652.424
		Traded Goods, Stores, Spares, etc.	135.201	223.195	168.871
		Capital Goods	11.078	11.941	92.822
	TOTAL IMPORTS		947.271	926.719	914.117
	Earnings / (Loss) Per Share (Rs.)		12.13	10.41	10.31

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013
	1^stQuarter	2^nd Quarter
Net Sales	1993.900	2027.700
Total Expenditure	1800.000	1815.400
PBIDT (Excl OI)	193.900	212.300
Other Income	7.200	4.500
Operating Profit	201.100	216.800
Interest	23.000	29.500
Exceptional Items	0.000	0.000
PBDT	178.200	187.300
Depreciation	35.000	28.100
Profit Before Tax	143.200	159.200
Tax	45.700	50.600
Provisions and contingencies	0.000	0.000
Profit After Tax	97.500	108.600
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	97.500	108.600

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	3.89	4.12	4.15
Operating Profit Margin (PBDIT/Sales)	(%)	10.17	10.71	11.18
Return on Total Assets (PBT/Total Assets}	(%)	6.72	6.04	5.72
Return on Investment (ROI) (PBT/Networth)		0.14	0.13	0.13
Debt Equity Ratio (Total Debt/Networth)		0.21	0.35	0.50
Current Ratio (Current Asset/Current Liability)		1.45	1.55	1.49

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	237.084	237.084	219.723
Reserves & Surplus	2267.154	2429.777	2529.225
Net worth	2504.238	2666.861	2748.948
long-term borrowings	420.004	244.740	117.849
Short term borrowings	830.887	684.391	449.859
Total borrowings	1250.891	929.131	567.708
Debt/Equity ratio	0.500	0.348	0.207

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	5782.682	5993.680	6845.677
		3.649	14.215

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	5782.682	5993.680	6845.677
Profit	240.057	246.738	266.619
	4.15%	4.12%	3.89%

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

CASE DETAILS

BENCH – BOMBAY

Presentation Date: 13/06/2014

Lodging No.:-	ITXAL/1137/2014	Filing Date:-	13/06/2014
Reg. No.:-	ITXA/1408/2014	Reg. Date:-	16/09/2014

Petitioner:-	THE COMMISSIONER OF INCOME TAX - 5	Respondent:-	GARWARE WALL ROPES LIMITED
Petn. Adv.:	NIRMAL CHANDRA MOHANTY (I10407)
District:-	MUMBAI

Bench:-	DIVISION
Status:-	Admitted (Unready)	Category:-	TAX APPEALS
Last Date:-	21/11/2014	Stage:-	FOR ADMISSION
Last Coram:-	HON’BLE SHRI JUSTICE S.C. DHARMADHIKARI HON’BLE SHRI JUSTICE A.A. SAYED

Act :-

Income Tax Act, 1961

Under Section:-

260A

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10334334	11/01/2012	150,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI TED	52/60 MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B31593486
2	10315464	01/11/2011	250,000,000.00	CITIBANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BAN DRA KURLA COMPLEX, BANDRA (EAST), MUMBAI, MAHARASHTRA - 400051, INDIA	B24454464
3	90084810	24/12/2013 *	2,831,000,000.00	BANK OF INDIA	1162/6 SHIVAJINAGAR, UNIVERSITY ROAD, PUNE, MAHAR ASHTRA - 411005, INDIA	B92901826

* Date of charge modification

UNSECURED LOANS

PARTICULARS

31.03.2013 (Rs. In Millions)

31.03.2012 (Rs. In Millions)

CORPORATE INFORMATION

The company is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at three Stock Exchanges in India. The company is engaged in Manufacturing and selling various products such as Ropes, Twine, Yarn, Fishnet, other Nets and Technical Textiles. The company is providing solution to the infrastructure industries which include Coastal Protection, land filling etc. The company caters to both domestic and international markets.

• 2013-2014 THE YEAR:

The Company earned revenue of Rs. 6887.900 Millions for the year ended 31st March, 2014 as against Rs. 6030.500 Millions of previous year. Domestic Sales stood at Rs. 3473.800 Millions, whereas Export Sales amounted to Rs. 3414.100 Millions for the year ended 31^st March, 2014.The business environment in the year offered opportunities as well as challenges for the growth of the Company. While there was a gradual revival in the global economy, recessionary trends ruled over major domestic industry segment. There was also continued pressure on costs. The Company successfully navigated through these challenges.

Despite the constraints and challenging environment, the Company earned Net Profit after Tax of Rs. 266.600 Millions, in the year, with an improvement of 7.50%,compared to previous year, even after higher incidence of tax.

The Company continues to be the world leader in manufacturing of products in this field. With a strong Research and Development team, the marketing of new products has enabled growth of market share in the international market. The new business segments of coated fabrics and agri-tech products are showing promising performance. With the budget already in place, there are early indications of a revival in the economy. Recent indicators from the global economy have also been positive. This is expected to have a positive impact on the business of the Company.

MANAGEMENT DISCUSSIONS AND ANALYSIS

OVERVIEW OF COMPANY

The Company, Garware-Wall Ropes Limited (GWRL), is one of India's leading players in technical textiles with a widespread global presence. Deploying its expertise in engineering of polymers and its in-depth knowledge of customer needs, the Company provides application-focused solutions for various sectors including deep-sea fishing, aquaculture, shipping, agriculture, sports, infrastructure, defence and transportation. The Company has three large integrated manufacturing facilities in Pune, Wai and Silvassa, where a wide variety of products are produced, including ropes, nets and aquaculture cages for capturing and breeding fish; nets for sports such as tennis and soccer; insect and shade nets for high-value agriculture; coated fabrics for covers, tarps, tents, etc; and geosynthetic solutions for water management, waste management and erosion-control applications.

Driven by the mission to provide innovative, application-focused solutions to enhance value of customers globally, the Company has secured customers across all continents inover 75 countries. End-users include fishermen, shipping companies, oil drillers, agriculturists, packers, transporters, construction companies, municipalities, government organisations, clubs, universities and manufacturing plants.

Correspondingly, the Company's sales are spread across several verticals and geographies, providing stability and hedge against fluctuations in particular business segments, and thereby ensuring a steady stream of revenue and profitability. Users of the Company’s products are serviced through branches, depots, dealers, associates and partners located across the globe. Marketing offices in USA, UK, Russia and Canada improve customer responsiveness in respective time zones and ensure better understanding of local needs.

Apart from being a leading player in the domestic market, the Company has a dominant share of markets in North America, parts of Europe and Australia, for several products.

The Company has a long history of paying dividend and is committed to enhancing stakeholder value through profitable growth in sales and earnings.

BUSINESS ENVIRONMENT IN FY 2013-14

In FY 2013-14, the global economy picked up slowly, especially in Europe and USA. Resultantly, there was growth in demand for the Company's products from Europe, Canada and USA, which are the key markets for the Company outside India. The domestic economy was marked by severe inflationary pressures. Nevertheless, the Company's domestic revenue increased, notably due to better performance in agriculture and fisheries sectors.

The persistent slowdown in the domestic infrastructure sector affected demand for the Company’s products for industrial and shipping applications. The geosynthetics business, which is driven largely by infrastructure-related policies of the government, was also affected. However, demand was good in some specific areas like erosion-control and landfill lining.

Despite macro factors that were not favourable for rapid growth, the Company could improve upon its performance through innovative products and exploration of new business segments. Concerted efforts were made for addition of new customers across the globe to compensate for low growth in traditional markets. New business lines were further developed and this helped boost the Company's revenues to some extent. Innovative solutions launched in the aquaculture industry were particularly successful.

COMPANY'S PERFORMANCE IN FY 2013-14

GWRL registered total revenue of Rs. 688.79 crores for the year ended 31st March, 2014,an increase of 12.4% over the previous year's revenue. Export revenue accounted for 49.6% of the total revenue. Compared to the previous year, export sales rose by 29.8%. Profit before tax in the year under review was Rs. 39.08 crores, registering an increase of 17% over the previous year.

Profitability was affected by steep increases in cost of raw materials, interest, power, labour and transportation. While the Company has been able to pass on cost increases in most customer segments, slowdown in the domestic fishery sector, which is their core business area, put pressure on margins. To mitigate cost increases, the Company undertook several initiatives to improve productivity per machine and person.

KEY FINANCIAL INDICATORS

· The Operating Profit Ratio of the Company is 5.07%.

· The Current Ratio of the Company is 1.49.

· The Company has a total Debt-Equity Ratio of 0.25:1.

WIDENING THE NET IN FISHERIES

In the year, GWRL strengthened its presence in the domestic fisheries sector, especially in the trawling segment, by offering customers and end-users new products, which deal effectively with challenges they face in their daily operations, and deliver higher value-realisation and cost savings. Successfully commercialised and ramped-up innovations include: OPENER, for the mouth portion of the net; ROCKY, for safe fishing on rocky grounds; STAR, for better speed and water outflow in the belly portion of the net; and KNOTLESS CODEND, which makes sure that there is no damage to the catch. An integrated combination of these products in one net gives boat-owners substantially higher catch, savings and profit. These benefits have been intensively communicated to existing and potential customers through close interactions, leading to firm enquiries and orders.

TRANSFORMING AQUACULTURE

Continuing its deep engagement with the rapidly growing aquaculture sector, GWRL provided an innovative solution to a persistent problem faced by users: their net-pens (marine cages) are frequently fouled by algae, mussels and other living organisms. As a result, the flow of clean, oxygenated water to the fish being cultured is impeded and a growth environment is provided for parasites and pathogens that can infect fish.

Fouling also increases the drag forces on the net-pens and requires stronger cages and mooring systems. Conventionally, the problem of fouling is prevented by applying copper-based solutions on the net. Apart from increasing operating cost, this solution raises environmental concerns and is considered undesirable by many consumers. Studying the problem intensively, GWRL's engineers came up with an inventive and path-breaking solution. They went down to the very root of the problem and came up with STAR, a net-penmade, not from nylon, the traditional net-material, but a new material that inherently resists fouling, and does not require copper treatment. Delivering multiple benefits, GWRL's STAR has revolutionised aquaculture.

EXPANDING USE OF TECHNICAL TEXTILES IN AGRICULTURE

Used for value-adding applications such as shade nets, crop covers, mulch nets,anti-hail nets, bird- protection nets and greenhouse covers, technical textiles are expected to usher in the second 'Green Revolution' in the country. GWRL is well- poised to contribute to this transformation, with a range of products for applications in high-value agriculture. In FY 2013-14, it expanded the range, with the launch of insect-protection nets, which prevent infestation by thrips and other insects that damage crops of horticulturists and other farmers. In the process, the GWRL product serves an important environmental goal: it prevents or reduces use of chemical insecticides and pesticides. While cultivation of fruits and vegetables in protected environments is well-established, other application areas for technical textiles, like sericulture and floriculture, are gaining recognition. Users are looking for long-lasting nets that provide uniform light dispersion, diffusion, coloration, and protection from ultraviolet rays. Meeting these needs, GWRL's R&D team is devising a range of products with varied specifications to suit different terrains.

ADDING A NEW DIMENSION TO COATED FABRICS

Building on its recent foray in technologically enhanced coated fabrics, GWRL expanded the application range, introducing a multi-purpose, multi-benefit product for users of tents and pandals. Called GURU Max, the product provides five-pronged protection, against fire, UV rays, dust, wind and water. Rigorously tested, GURU Max has surpassed customer expectations. As importantly, the product lasts longer than conventional materials and is thus economical over the long term. While the conventional textile used to erect tents orpandals is made from highly ignitable materials which may act as the primary source of fire percolation, the GWRL product is made from fire-retardant fabrics that prevent the spread of flames and also provide a pleasant aesthetic environment. The application range of coated fabrics was also expanded by launch of a product to prevent infestation of farmed salmon. The product complements GWRL's offerings for the aquaculture sector worldwide.

CONTINGENT LIABILITIES (AS ON 31.03.2014):

(i) Disputed Excise Duty Rs. 2.757 Millions (Previous year Rs. 3.212 Millions).

(ii) Bank Guarantees for Rs. 149.871 Millions (Previous year Rs. 143.584 Millions),in the ordinary course of business, against which the Company has issued counter guarantees for the overall bank limits of Rs. 1453.500 Millions (Previous year Rs. 1453.500 Millions).

(iii) Disputed amount of Sales Tax liability Rs. 196.68 Millions (Previous year Rs. 19.668 Millions).

(iv) Export Sales Bills Discounted with the Bank Rs. 301.505 Millions (Previous year Rs. 147.786 Millions).

(v) The interest portion on delayed payment of Octroi Liability amounting to Rs. 2.164 Millions (Previous year Rs. 2.164 Millions) is under dispute.

(vi) The lncome Tax liability due to the department's appeals at higher levels (Supreme Court) amounting to Rs. 20.800 Millions (Previous year Rs. Nil).

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2014

(Rs. in Millions)

Sr. No.	Particulars	Standalone Quarter ended		Standalone Half year ended
		30/09/2014 (Unaudited)	30/06/2014 (Unaudited)	30/09/2014 (Unaudited)
PART I
1.	Income from operations (a) Net Sales/Income from Operations (Net of excise duty)	20233.77	19845.79	40079.56
	(b) Other Operating Income	43.30	93.31	136.61
	Total income from operations (net)	20277.07	19939.10	40216.17
2.	Expenses a) Cost of materials consumed b) Purchase of Stock-in-trade c) Changes in inventories of finished goods, work in progress and stock-in-trade d) Employee benefits expense e) Depreciation and amortisation expense f) Other expenses (Any item exceeding 10% of the total expenses relating to continuing operations to be shown separately)	8631.35 413.88 370.66 2630.16 281.40 6107.76	8435.38 633.24 125.60 2632.54 349.99 6173.78	17066.73 1047.12 496.26 5262.70 631.39 12281.54
	Total expenses	18435.21	18350.53	36785.74
3.	Profit / (Loss) from Operations before Other Income, finance cost and exceptional Items (1-2)	1841.86	1588.57	3430.43
4.	Other Income	45.00	72.35	117.35
5.	Profit / (Loss) from ordinary activities before finance cost and exceptional Items (3+4)	1886.86	1660.92	3547.78
6.	Finance Cost	294.91	229.45	524.36
7.	Profit / (Loss) from ordinary activities after finance cost but before exceptional Items (5+6)	1591.95	1431.47	3023.42
8.	Exceptional Items	--	--	--
9.	Profit (+) / Loss(-) from Ordinary Activities Before Tax (7+8)	1591.95	1431.47	3023.42
10.	Tax Expenses	506.39	456.50	962.89
11.	Net Profit (+) / Loss (-) from Ordinary Activities after Tax (9-10)	1085.56	974.97	2060.53
12.	Extraordinary Items (net of Tax Expense Rs. Nil)	---	---	---
13.	Net Profit (+)/Loss (-) for the period (11-12)	1085.56	974.97	2060.53
14.	Paid-up Equity Share Capital (Face value Rs. 10/- each) (Pleace see Note. 4 beow)	2188.21	2,188.21	2188.21
15.	Reserves excluding Revaluation Reserves as per Balance Sheet of previous Accounting Year	-----		-----
16.	Earnings Per Share of Rs. 10/- each (EPS) (Rs.) (Pleace see Note. 4 beow) a) Basic EPS before Extraordinary items (not annualised) b) Basic EPS after Extraordinary items (not annualised) c) Diluted EPS beforeExtraordinary items (not annualised) d) Diluted EPS after Extraordinary items (not annualised)	4.58 4.58 4.58 4.58	4.46 4.46 4.46 4.46	8.69 8.69 8.69 8.69
PAR A.	T II PARTICULARS OF SHAREHOLDING
1	Public shareholding - Number of shares - Percentage of shareholding	1,08,18,628 49.44	1,08,38,154 49.53	1,08,18,628 49.44
2	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered - Number of shares	NIL	NIL	NIL
	b) Non-encumbered - Number of shares - Percentage of shares (as a % of the total shareholding of Promoters) - Percentage of shares (as a % of the total share capital of the Company)	1,10,63,432 100.00 50.56	1,10,43,906 100.00 50.47	1,10,63,432 100.00 50.56

B.	INVESTOR COMPLAINTS DURING THREE MONTHS ENDED ON 30TH SEPTEMBER, 2014
	Pending at the beginning of the quarter (Nos.)	Received during the quarter (Nos.)	Disposed of during the quarter (Nos.)	Remaining unresolved at the end of the quarter (Nos.)
	NIL	NIL	NIL	NIL

Sr. No.	Particulars	Standalone Quarter ended		Standalone Half year ended
		30/09/2014 (Unaudited)	30/06/2014 (Unaudited)	30/09/2014 (Unaudited)
1.	Segment Revenue
a)	Synthetic cordage	1762.412	1670.887	3433.298
b)	Fibre and Industrial Products & Projects	416.410	401.810	818.220
	Total Less: Inter-Segment Revenue	(155.445)	(88.118)	(243.563)
	Net Sales/Income from Operations	2178.822	2072.697	4251.519
2.	Segment Results (Profit (+)/Loss(-) before tax and interest from each segment)
	a) Synthetic cordage	180.754	178.349	359.103
	b) Fibre and Industrial Products & Projects	31.272	28.189	59.461
	Total	212.026	206.538	418.564
	Less:
	i) Interest	(29.491)	(22.945)	(52.436)
	ii) Other unallocable expenditure net off Unallocable Income	(22.761)	(40.446)	(63.207)
	Total Profit Before Tax	159.774	143.147	302.921
3.	Capital Employed (Segment Assets - Segment Liabilities)
	a) Synthetic cordage	2680.445	2571.742	2680.445
	b) Fibre and Industrial Products & Projects	859.454	895.960	859.454
	Total	3539.899	3467.702	3539.899

STATEMENT OF ASSETS AND LIABILITIES

	Particular	As at 30.09.2014 (Unaudited)
A	EQUITY AND LIABILITIES
1	Shareholders’ funds
	(a) Share capital	218.821
	(b) Reserves and surplus	2732.145
	Sub-total - Shareholders' funds	2950.966
2	Non-current liabilities
	(a) Long-term borrowings	107.175
	(b) Deferred tax liabilities (Net)	211.090
	(c) Other long term liabilities	30.873
	(d) Long-term provisions	24.249
	Sub-total - Non-current liabilities	373.387
3	Current liabilities
	(a) Short-term borrowings	512.912
	(b) Trade payables	559.482
	(c) Other current liabilities	599.850
	(d) Short-term provision	1282.406
	Sub-total - Current liabilities	2954.650
	TOTAL - EQUITY AND LIABILITIES	6279.003
B	ASSETS
1	Non-current assets
	(a) Fixed assets	1611.775
	(b) Non-current investments	93.366
	(c) Long-term loans and advances	90.190
	(d) Other non-current assets	12.820
	Sub-total - Non-current assets	1808.151
2	Current assets
	(a) Inventories	1131.013
	(b) Trade receivables	1673.467
	(c) Cash and cash equivalents	202.917
	(d) Short-term loans and advances	1463.455
	Sub-total - Current assets	4470.852
	TOTAL - ASSETS	6279.003

NOTES:

1. Garware Environmental Services Private Limited, ("Subsidiary Company") is yet to commence its commercial operation.

2. The above results were reviewed by the Statutory Auditors and also by the Audit Committee and have been taken on record and approved by the Board of Directors at its meeting held on Monday, 10th November, 2014.

3. The figures for the quarter ended 30th September, 2014 are the balancing figures between unaudited figures of six months ended 30th September, 2014 and the published figures of the quarter ended 30th June, 2014

4. Issued, subscribed and paid up capital was reduced from 23,708,350 shares to 21,882,060 shares, due to Buy Back scheme of the company, which was concluded on 9th April, 2014.

5. The Company has decided to adopt the useful life as specified in Part C of the Schedule II of the Companies Act, 2013 w.e.f. 1st April, 2014 for all its fixed assets. The excess provision, of Rs. 4.134 Millions for the quarter ended 30th June, 2014, as a results of adoption of useful life, has been adjusted in the current quarter ending 30th September, 2014.

6. In accordance with the transitional provision under Note 7(b) to part C of the Schedule II of the Act, the Company has recognised an amount of Rs. 6.267 Millions (net off of deferred tax Rs. 2.130 Millions)in the opening retained earning, pertaining to assets whose balance useful life was Nil as at 1st April 2014.

FIXED ASSETS

TANGIBLE ASSETS

· Leasehold Land

· Buildings

· Plant and Machinery

· R&D Equipments

· Electrical Installations

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Helicopter

INTANGIBLE ASSETS

· Technical Know-How

· Product Development

· Computer Software

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.61.93
UK Pound	1	Rs.97.39
Euro	1	Rs.77.21

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.