MIRA INFORM REPORT

Report Date :

15.12.2014

IDENTIFICATION DETAILS

Name :	GUJARAT FLUOROCHEMICALS LIMITED
Registered Office :	Survey No 16/3, 26 and 27 Ranjitnagar, Ghoghamba Taluka, Panchmahal - 389380, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.02.1987
Com. Reg. No.:	04-009362
Capital Investment / Paid-up Capital :	Rs. 109.850 Millions
IEC No.:	Not Available
CIN No.: [Company Identification No.]	L24110GJ1987PLC009362
TAN No.: [Tax Deduction & Collection Account No.]	BRDG01210G
PAN No.: [Permanent Account No.]	AAACG6725H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Refrigeration Gases and etc.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (62)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. Sales turnover of the company has declined resulting into sharp dip in profit of the company during financial year 2014. However, liquidity position is strong and healthy. Trade relation are reported as 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA- (Long Term Rating)
Rating Explanation	High degree at safety and very low credit risk.
Date	04.03.2014

Rating Agency Name	CRISIL
Rating	A1+ (Short Term Rating)
Rating Explanation	Very strong degree at safety and lowest credit risk.
Date	04.03.2014

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 DENIED

Management Non Cooperative (91-265-6198111)

LOCATIONS

Registered Office / Factory 1 :	Survey No 16/3, 26 And 27 Ranjitnagar, Ghoghamba Taluka, Panchmahal – 389380, Gujarat, India
Tel. No.:	91-2678-248153
Fax No.:	91-2641-256072
E-Mail :	inoflon@gfl.co.in bvdesai@gfl.co.in
Website :	www.gfl.co.in
Corporate Office :	ABS Towers, 2^nd Floor, Old Padra Road, Vadodara - 390 007, Gujarat, India
Factory 2 :	Dahej Project Plot No 12A, GIDC Dahej Industrial Estate, Taluka vagra District, Bharuch, Gujarat, India
Regional Offices / Refrigerant Gas Division :	INOX Towers, Plot No. 17, Sector 16-A, Noida – 201301, Uttar Pradesh, India.
Tel. No.:	91-120-6149600
Fax No.:	91-120-6149610
Marketing Office :	Western Region INOX APL, A/2, TTC Industrial area, Off Thane Belapur Road, Pawane MIDC, Navi Mumbai – 400 710, Maharashtra, India
Tel. No.:	91-22-3294 4123
Fax No.:	91-22-2767 2458
Marketing Office :	Southern Region 3C, III Floor, Ram Mansion, No. 68, Panthan Road, Eqmore, Chennai - 600 008, Tamilnadu, India
Tel. No.:	91-44-2819 2373
Fax No.:	91-44-2819 2374
Branch Office :	Flat No 68, Jolly Maker Chambers No 2, Near Bajaj Bhavan, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22 - 22041860
Fax No.:	91-22-22855675 / 22025588

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Devendra Kumar Jain
Designation :	Non-Executive Director
Name :	Mr. Shailendre D Swarup
Designation :	Independent Director
Date of Birth/Age :	20.11.1944
Date of Appointment :	01.01.1988
Name :	Mr. Pavan Jain
Designation :	Non-Executive Director
Name :	Mr. Vivek Jain
Designation :	Managing Director
Date of Birth/Age :	30.08.1955
Date of Appointment :	04.02.1987
Name :	Mr. Dinesh Kumar Sachdeva
Designation :	Whole-Time Director
Date of Birth/Age :	12.12.1944
Date of Appointment :	29.11.1996
Name :	Mr. Jitendra Singh Bedi
Designation :	Whole-Time Director
Date of Birth/Age :	13.08.1953
Date of Appointment :	31.10.2006
Name :	Mr. Om Prakash. Lohia
Designation :	Independent Director
Name :	Dr. S. Rama lyer
Designation :	Independent Director
Name :	Mr. Deepak Asher
Designation :	Director and Group Head Corporate Finance
Name :	Mr. Shanti Prasad Jain
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. B.V. Desai
Designation :	Company Secretary
Name :	Mr. Kaushal Patel
Designation :	Finance Manager
Audit Committee	Shri Devendra Kumar Jain Shri Shanti Prasad Jain Shri Shailendra Swarup

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	141600	0.13
Bodies Corporate	76675881	69.80
Sub Total	76817481	69.93
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	76817481	69.93
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3116559	2.84
Financial Institutions / Banks	32428	0.03
Central Government / State Government(s)	500	0.00
Foreign Institutional Investors	1954487	1.78
Any Others (Specify)	2000	0.00
Foreign Companies	2000	0.00
Sub Total	5105974	4.65
(2) Non-Institutions
Bodies Corporate	12062831	10.98
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	8335565	7.59
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	6085582	5.54
Any Others (Specify)	1442567	1.31
Clearing Members	675381	0.61
Non Resident Indians	694686	0.63
Trusts	72500	0.07
Sub Total	27926545	25.42
Total Public shareholding (B)	33032519	30.07
Total (A)+(B)	109850000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	109850000	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Inox Leasing and Finance Limited	5,77,15,310	52.54
2	Siddhapavan Trading and Finance Private Limited	55,76,440	5.08
3	Devansh Trading & Finance Private Limited	66,62,360	6.06
4	Siddho Mal Investments Private Limited	20,19,260	1.84
5	Inox Chemical Private Limited	29,55,230	2.69
6	Hotz Industries Limited	17,47,281	1.59
7	Pavan Kumar Jain	20,100	0.02
8	Vivek Kumar Jain	20,100	0.02
9	Sita Devi	11,300	0.01
10	Siddharth Jain	20,000	0.02
11	Devendra Kumar Jain	20,100	0.02
12	Devansh Jain	10,000	0.01
13	Hem Kumari	10,000	0.01
14	Kapoor Chand Jain	10,000	0.01
15	Nandita Jain	10,000	0.01
16	Nayantara Jain	10,000	0.01
	Total	7,68,17,481	69.93

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Roopchand Bhanshali	1897643	1.73
2	Reliance Cap Trustee Company	2527100	2.30
3	Reliance Life Insurance Company	1407620	1.28
	Total	5832363	5.31

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Refrigeration Gases and etc.
Products :	Not Divulged
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS: Not Available

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

• The Royal Bank of Scotland
• HDFC Bank Limited
• DBS Bank Ltd.
• Citibank N.A.
• BNP Paribas
• Yes Bank Limited
• Axis Bank Limited
• ING Vysya Bank Limited
• Societe Generale
• Indusind Bank Limited
• ICICI Bank Limited
• Kotak Mahindra Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
From Banks
Foreign Currency Loans	3529.225	4102.224
Less: Current Maturities of Long term borrowings	598.192	757.966
	2931.033	3344.258
SHORT TERM BORROWINGS
From Banks
Cash Credit/Overdraft	210.728	442.982
Packing credit /Buyers Credit /Others
Rupee Loan	250.000	0.000
Foreign Currency Loans	462.741	159.057
Total	3854.502	3946.297

Auditors :
Name :	M/s. Patankar and Associates Chartered Accountants
Memberships :	Not Divulged
Collaborators :	Not Divulged
Holding Company:	Inox Leasing and Finance Limited
Subsidiary Companies:	Inox Leisure Limited Inox Infrastructure Limited Inox Wind Limited (IWL) Inox Wind Infrastructure Services Limited (IWISL) Subsidiary of IWL (Incorporated on 11th May 2012) Marut Shakti Energy Limited- Subsidiary of IWISL (w.e.f. 13th September, 2013) Inox Renewables Limited (IRL) Inox Renewables Jaisalmer Limited- Subsidiary of IRL (Incorporated on 24th July, 2012) Gujarat Fluorochemicals Americas LLC, U.S.A. (GFL Americas LLC) GFL Singapore Pte Limited GFL GM Fluorspar SA -Subsidiary of GFL Singapore Pte. Limited Gujarat Fluorochemicals GmbH, Germany (Incorporated on 6th September, 2013)
Joint Venture:	Xuancheng HengYuan Chemical Technology Co. Ltd (XHCT Co. Ltd) Swarnim Gujarat Fluorspar Private Limited (Incorporated on 19th June, 2012)
Enterprises over which Key Management Personnel, or his relative, has significant influence :	Devansh Gases Private Limited Devansh Trading and Finance Private Limited Inox India Limited Inox Air Products Limited Inox Chemicals Private Limited Refron Valves Limited Rajni Farms Private Limited Sidhapavan Trading and Finance Private Limited Siddho Mal Investments Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.1/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
109850000	Equity Shares	Rs.1/- each	Rs.109.850 Millions

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Re 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any. During the year the Company has paid interim dividend of Rs. Nil per equity share (previous year Re. 1.50 per equity share). Further, final dividend of Rs. 3.50 per equity share (previous year Rs. 2.00 per equity share) is proposed to be distributed to the equity shareholders. The total distribution of dividend to the equity shareholders for the year is Rs. 3.50 per share (previous year Rs. 3.50 per share).

Shares held by holding company

Particulars	Nos.	Rs. (In Millions)
Inox Leasing and Finance Limited	57715310	57.715
	(57715310)	(57.715)

Details of shareholders holding more than 5% shares in the company

Particulars	Nos.	holding %
Inox Leasing and Finance Limited	57715310	52.54%
	(57715310)	(52.54%)
Devansh Trading and Finance Private Limited	6662360	6.06%
	(6662360)	(6.06%)
Siddhapavan Trading and Finance Private Limited	5576440	5.08%
	(5576440)	(5.08%)

Details of shares bought back in the immediately preceding five years

59,30,000 Equity shares were bought back in the Financial Year 2008-09

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	109.850	109.850	109.850
(b) Reserves & Surplus	25137.078	24842.715	21307.826
(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)	25246.928	24952.565	21417.676
(3) Non-Current Liabilities
(a) long-term borrowings	2931.033	3344.258	3938.188
(b) Deferred tax liabilities (Net)	2019.917	1583.153	1306.773
(c) Other long term liabilities	23.598	20.520	20.520
(d) long-term provisions	74.193	71.918	62.116
Total Non-current Liabilities (3)	5048.741	5019.849	5327.597
(4) Current Liabilities
(a) Short term borrowings	3520.218	4562.007	3690.862
(b) Trade payables	1201.886	1022.937	1209.207
(c) Other current liabilities	1009.509	1407.506	2557.181
(d) Short-term provisions	501.549	304.288	387.915
Total Current Liabilities (4)	6233.162	7296.738	7845.165
TOTAL	36528.831	37269.152	34590.438
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	15945.870	16052.628	16045.213
(ii) Intangible Assets	335.340	195.421	223.147
(iii) Capital work-in-progress	4282.338	3909.915	2534.002
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2541.838	2690.758	2882.066
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4127.780	3930.510	3617.160
(e) Other Non-current assets	0.100	0.053	0.000
Total Non-Current Assets	27233.266	26779.285	25301.588
(2) Current assets
(a) Current investments	2096.250	2050.000	50.001
(b) Inventories	3169.540	4211.120	4144.017
(c) Trade receivables	3167.192	3308.880	2478.331
(d) Cash and cash equivalents	84.803	192.586	2113.404
(e) Short-term loans and advances	558.182	578.299	487.895
(f) Other current assets	219.598	148.982	15.202
Total Current Assets	9295.565	10489.867	9288.850
TOTAL	36528.831	37269.152	34590.438

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	11409.358	15960.809	20689.961
	Other Income	650.595	569.038	576.395
	TOTAL (A)	12059.953	16529.847	21266.356
Less	EXPENSES
	Cost of Materials Consumed	3208.416	3034.728	2523.534
	Purchases of Stock-in-Trade	9.252	20.956	53.001
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	410.484	(750.826)	(942.965)
	Employees benefits expense	806.945	745.333	665.284
	Other expenses	5076.554	5887.970	7606.515
	TOTAL (B)	9511.651	8938.161	9905.369
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2548.302	7591.686	11360.987
Less	FINANCIAL EXPENSES (D)	552.846	689.460	571.300
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1995.456	6902.226	10789.687
Less/ Add	DEPRECIATION/ AMORTISATION (F)	1017.012	963.827	778.159
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	978.444	5938.399	10011.528
Less	TAX (H)	234.264	1954.966	5695.563
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	744.180	3983.433	4315.965
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (J)	72.200	37.400	18.300
Less	APPROPRIATIONS
	Transfer to General Reserve	300.000	3500.000	3850.000
	Interim Dividend	0.000	164.800	219.700
	Proposed Dividend subject to approval of the shareholders	384.500	219.700	164.800
	Tax on Dividend	65.300	64.000	62.400
	Total (M)	749.800	3948.500	4296.900
	Balance Carried to the B/S (J+K+L-M)	66.580	72.333	37.365
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	4135.847	7967.493	14601.509
	Dividend	0.000	21.676	7.844
	Other recoveries on Exports	116.801	70.621	60.969
	Other Operating Income	16.807	867.375
	TOTAL EARNINGS	4269.455	8927.165	14670.322
	IMPORTS
	Raw Materials	1398.593	1215.626	2458.442
	Fuel	528.827	533.771	603.418
	Traded goods	2.914	15.768	28.061
	Components and Stores parts	55.919	146.836	114.408
	Capital Goods	61.204	391.217	332.903
	TOTAL IMPORTS	2047.457	2303.218	3537.232
	Earnings / (Loss) Per Share (Rs.)
	-- Basic	6.77	36.22	68.55
	-- Diluted	6.77	36.26	39.29

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	6.52	24.96	20.86
Operating Profit Margin (PBDIT/Sales)	(%)	22.36	47.56	54.91
Return on Total Assets (PBT/Total Assets}	(%)	3.29	19.36	34.32
Return on Investment (ROI) (PBT/Networth)		0.04	0.24	0.47
Debt Equity Ratio (Total Debt /Networth)		0.26	0.32	0.36
Current Ratio (Current Asset/Current Liability)		1.49	1.44	1.18

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	109.850	109.850	109.850
Reserves & Surplus	21307.826	24842.715	25137.078
Net worth	21417.676	24952.565	25246.928
long-term borrowings	3938.188	3344.258	2931.033
Short term borrowings	3690.862	4562.007	3520.218
Total borrowings	7629.050	7906.265	6451.251
Debt/Equity ratio	0.356	0.317	0.256

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	20689.961	15960.809	11409.358
		(22.857)	(28.516)

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	20689.961	15960.809	11409.358
Profit	4315.965	3983.433	744.180
	20.86%	24.96%	6.52%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current maturities of long-term debt	598.192	757.966	882.679
Total	598.192	757.966	882.679

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
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	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	Yes
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
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

LITIGATION DETAILS:

HIGH COURT OF GUJARAT

TAX APPEAL No. 84 of 2013

Status : PENDING

CCIN No : 001092201300084

Last Listing Date:

20/01/2014

Coram

HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX I	MR KM PARIKH for: Appellant(s) 1

S.NO.	Name of the Respondant	Advocate On Record
1 1	GUJARAT FLUOROCHEMICALS LTD GUJARAT FLUROCHEMICALS LTD	RULE SERVED for :Opponent(s) 1 MR KM PARIKH for :Opponent(s) 1 MR B S SOPARKAR for :Opponent(s) 1

Presented On	: 03/12/2012	Registered On	: 18/01/2013
Bench Category	: DIVISION BENCH	District	: VADODARA
Case Originated From	: THROUGH HIS/HER/THEIR ADVOCATE	Listed	: 24 times
Stage Name	: NOTICE RETURNABLE MATTERS

Classification	· DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	· INCOME-TAX ACT, 1961

Other Forums

S. No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	ITA/2460/AHD/2004	INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH	VICE PRESIDENT AND ACCOUNTANT MEMBER	06/07/2012	VADODARA

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	03/12/2012	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	20	MR KM PARIKH:1
2	03/12/2012	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for RESPONDENT(s) 1 , 1	20	MR KM PARIKH:1
3	28/12/2012	CERTIFIED COPY	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	6	MR KM PARIKH:1
4	28/12/2012	CERTIFIED COPY	MR KM PARIKH ADVOCATE for RESPONDENT(s) 1 , 1	6	MR KM PARIKH:1
5	01/07/2013	APPEARANCE NOTE	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	0	MR KM PARIKH(575), for P:1
6	01/07/2013	CERTIFIED COPY	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	6	MR KM PARIKH(575), for P:1
7	01/07/2013	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	20	MR KM PARIKH(575), for P:1
8	22/08/2013	VAKALATNAMA	MR B S SOPARKAR ADVOCATE for RESPONDENT(s) 1	5	MR B S SOPARKAR(6851) for R:1

Linked Matters

S. No.	Case Detail	Status Name	Disposal Date	Action/Coram
1	TAX APPEAL/651/2013	PENDING	-	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI

Court Proceedings

S. No.	Notified Date	Court Code	Board Sr. No.	Stage	Action	Coram
1	21/03/2013	7	43	OFFICE OBJECTION REMOVED	NEXT DATE	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI
2	10/04/2013	7	80	ADMISSION (FRESH MATTERS)	NEXT DATE	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI
3	29/04/2013	7	54	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI
4	07/05/2013	7	20	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE AKILKURESHI · HONOURABLE MS JUSTICE SONIA GOKANI
5	11/06/2013	5	20	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
6	18/06/2013	5	26	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
7	02/07/2013	5	23	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
8	15/07/2013	5	19	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
9	16/07/2013	5	9	ADJOURNED MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
10	23/07/2013	5	22	ADJOURNED MATTERS	FIXED NOTICE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
11	26/08/2013	5	51	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
12	10/09/2013	5	43	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
13	08/10/2013	5	38	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
14	22/10/2013	5	47	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI
15	25/11/2013	5	37	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE R.P.DHOLARIA
16	02/12/2013	5	65	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MR.JUSTICE R.P.DHOLARIA
17	17/12/2013	5	57	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MR.JUSTICE R.P.DHOLARIA
18	06/01/2014	7	56	NOTICE RETURNABLE MATTERS	NEXT DATE	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE R.P.DHOLARIA
19	20/01/2014	7	33	NOTICE RETURNABLE MATTERS	RULE/ADMIT	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Questions	Transferred	Download
1	TAX APPEAL/84/2013	· HONOURABLE MR.JUSTICE M.R. SHAH · HONOURABLE MS JUSTICE SONIA GOKANI	23/07/2013	N	ORDER	-	Y	Download
2	TAX APPEAL/84/2013	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI	20/01/2014	N	ORDER	-	Y	Download

Certified Copy

S. No.	Applicant Name	Application Type	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MR KM PARIKH	ORDINARY	21/01/2014	O/2619/2014	20/01/2014	24/01/2014	28/01/2014	Delivered	ORDER

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
From Banks
Cash Credit /	0.000	1206.015
Packing credit/ Buyers credit/Others
Rupee Loan	1750.000	1250.000
Foreign Currency Loans	846.749	1503.953
Total	2596.749	3959.968

MANAGEMENT DISCUSSION AND ANALYSIS REPORT – 2013-14

PTFE / Chemicals Business

Industry structure and developments

Total global PTFE market is around 150000 tpa, of which 60% is granular and 40% is fine powder and aqueous dispersion grades. The market is growing at a CAGR of 3-4% for last several years. However, it had witnessed significant upheaval during last 3-4 years. After having seen a period of shortage and rising prices, the market entered a period of surplus and falling prices. During the financial year the prices remained subdued and demand sluggish, though there have been some signs of recovery towards the end of the year. Going forward, demand is expected to get a boost due to increased usage in architectural and household applications.

In terms of supply, the industry is dominated by two kinds of players – long term, high quality, large players from developed countries, who command around 50% market share, and new players from developing countries who have around 50% market share. There is a distinct shift occurring towards the later.

The Company entered the PTFE business in 2008, and in a short span of time, became a significant player in the global market. The Company is perceived as a high quality PTFE supplier, who works closely with customers to meet their requirements. With the present capacity of about 16,000 tpa, The Company caters to a significant share of the global market, putting it in the bracket of the top 3-4 PTFE suppliers globally. The Company has also introduced in the market various grades of fine powders and aqueous dispersion PTFE. Consistent with its commitment towards the environment, the Company manufactures fine powder and aqueous dispersion PTFE grades manufactured by using environment friendly surfactant technology.

The company has managed to retain its market share and has added a number of key customers with its relentless marketing efforts. In its efforts to be closer to the customer, The Company has incorporated a subsidiary in Germany, in addition to the subsidiary in the US.

Indian market for PTFE is around 3000 – 3500 tpa, growing at a healthy 7 – 8% per annum. The Company has around 70% market share in India, being the only significant producer in the country. There is an immense latent potential for higher PTFE demand and the Company is working with Indian PTFE processors to develop new products and applications to spur higher growth and demand in the domestic market.

Globally, established players are moving to higher value added polymers, leaving the space in the traditional PTFE markets for players like The Company. The Company also plans to enter the segment of higher value added fluoropolymers and fluoroelastomers in the near future. Due to its continued marketing efforts the Company has been able to increase its market penetration and enlarge its customer base.

The Company enjoys a significant competitive advantage, because of its integrated operations. It is amongst the most integrated players globally, giving it significant cost competiveness amongst other global players. The Company has placed enormous emphasis on high and consistent quality of all PTFE grades matching the best in the business, by continuous operations and process improvements. The Company has adopted marketing strategies to be proximate with customers and provide value added services such as office and warehousing facilities in the US and EU markets, and technical services to drive value for customers. The Company has enlarged its sales field force both in domestic as well as in international market to further increase its market share.

Segment-wise product-wise performance

Caustic Soda accounts for around 25% of the Company’s sales in value terms. Caustic soda sales, though increased by 8% in volume terms compared to last year, dropped by around 4% in value terms, largely due to lower price realisations.

Chloromethanes account for around 19% of the Company’s sales in value terms. Chloromethane sales has increased by around 15% in value terms, due to higher price realisations despite remaining the same in volume terms. PTFE accounts for around 38% of the Company’s sales in value terms. PTFE sales recorded increase by 34% in volume terms and 12% in value terms.

Around 24% of the Company’s PTFE sales last financial year came from the domestic market and more than 76% of PTFE sales came from the export markets, in value terms. The Company witnessed a 21% fall in its PTFE exports in value terms.

A bulk of the Company’s PTFE sales, more than 78%, comes from granular PTFE (including modified granular) with dispersion PTFE accounting for 18%, and APTFE for around 4% Granular PTFE sales increased by around 9%.

Outlook

The demand sluggishness and consequently subdued prices witnessed in the previous year spilled over in this year too. However, the US economy in particular, fuelled by shale gas discovery, is expected to do well in the coming year. This is expected to boost the global economy. Therefore, the Company expects the growth momentum in PTFE sales to pick up during this coming financial year.

With the introduction of fine powder and aqueous dispersion grades of PTFE in the product mix and growth in the

modified and compounding businesses, the Company expects value addition in the PTFE business to increase further.

The Company is, in addition to being the largest PTFE producer in the country, also the largest producer of chloromethanes, and a significant player in the caustic soda business in India.

The Company is also seriously considering other products in the fluoropolymer, fluoroelastomers and speciality fluorochemicals segments, and would take investment decisions in these areas shortly, after a complete evaluation of the market, technologies and economics. This would provide an avenue of growth in the near future.

The Company has launched several profit improvement, cost reduction and energy saving projects some of which have already started yielding good results. During the forthcoming financial year there will be significant contribution on revenues and profitability from these projects.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND HALF YEAR ENDED 30^TH SEPTEMBER 2014

Sr. No.	Particulars	3 months ended	3 months ended	6 months ended
		30/09/2014	30/06/2014	30/09/2014
A 1		(Unaudited)	(Unaudited)	(Unaudited)
	Income from operations
	a) Net Sales / Income from operations (net of excise duty)	3507.100	2821.300	6328.400
	b) Other Operating Income	68.700	15.000	83.700
	Total Income from operations (net)	3575.800	2836.300	6412.100
2	Expenses
	a) Cost of materials consumed	957.400	849.300	1806.700
	b) Purchases of stock-in-trade	3.300	12.200	15.000
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(86.100)	(109.800)	(195.900)
	d) Employee benefits expense	252.700	229.200	481.900
	e) Power and fuel	1024.000	843.300	1867.300
	f) Foreign Exchange Fluctuation (Gain)/Loss (net)	(17.500)	(4.900)	(22.400)
	g) Depreciation and amortization expense	311.900	270.500	582.400
	h) Other expenses	551.200	527.400	1078.600
	i) Total Expenses (a to h)	2996.900	2617.200	5614.100
3	Profit from operations before other income, finance costs & exceptional items (1-2)	578.900	219.100	798.000
4	Other Income	140.600	201.100	341.700
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	719.500	420.200	1139.700
6	Finance costs	130.500	127.500	258.000
7	Profit from ordinary activities after Finance Costs but before exceptional items (5-6)	589.000	292.700	881.700
8	Exceptional Items	88.500	58.000	146.500
9	Profit from ordinary activities before tax (7+8)	500.500	234.700	735.200
10	Tax Expense
	a) Current Tax	105.300	5.300	110.600
	b) MAT Credit Entitlement	(105.300)	(5.300)	(110.600)
	c) Deferred Tax	120.100	65.500	185.600
	d) Taxation in respect of earlier years	0.000	0.000	0.000
	Total Provision for Taxation (a to d)	120.100	65.500	185.600
11	Net Profit from ordinary activities after tax	380.400	169.200	549.600
12	Extraordinary Items (net of tax)	0.000	0.000	0.000
13	Net Profit for the period (11-12)	380.400	169.200	549.600
14	Earnings Before Interest, Tax ,Depreciation and Amortization and Exceptional Items (EBITDAE)	1031.400	690.700	1722.100
15	Cash profit (profit After Tax + Deferred Tax + Depreciation)	812.400	505.200	1317.600
16	Paid-up Equity Share Capital (Face value of Re 1 each)	109.900	109.900	109.900
17	Reserves excluding revaluation reserves as per balance sheet of previous accounting year
18	Basic and Diluted Earnings per share (Rs) (Face value of Re 1 each) - Not annualized	3.46	1.54	5.00
Part II
A	Particulars of Shareholding
1	Public shareholding - Number of shares	33032519	32938685	33032519
	- Percentage of shareholding	30.07%	29.99%	30.07%
2	Promoters and promoter group Shareholding a) Pledged/Encumbered- Number of shares	Nil	Nil	Nil
	- Percentage of shares (as a percentage of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of shares (as a percentage of the total share capital of the company)	Nil	Nil	Nil
	b) Non-encumbered - Number of shares	76817481	76911315	76817481
	- Percentage of shares (as a percentage of the total shareholding of promoter and promoter group)	100.00%	100.00%	100.00%
	- Percentage of shares (as a percentage of the total share capital of the company)	69.93%	70.01%	69.93%
B	Investor Complaints
	Pending at the beginning of the quarter	Nil	Nil	Nil
	Received during the quarter	5	3	5
	Disposed of during the quarter	5	3	5
	Remaining un resolved at the end of the quarter	Nil	Nil	Nil

Notes:

The above results, reviewed by the Audit Committee, were approved by the Board of Directors at their meeting held on 21st October, 2014 and have undergone “Limited Review” by the Statutory Auditors.

The Company has adopted the useful lives of various fixed assets as specified in Schedule II of the Companies Act, 2013, with effect from 1 April 2014, as against the useful lives adopted earlier as specified in Schedule XIV to the Companies Act, 1956. Consequently, depreciation charge for the quarter is higher by Rs. 5.100 Millions and for the half year by Rs. 7.200 Millions. Further, the carrying amount of assets as on 1 April 2014, where the remaining useful life of the asset as per Schedule II is nil, amounting to Rs. 30.300 Millions (net of deferred tax credit of Rs. 15.600 Millions) is recognized in the opening balance of retained earnings.

Exceptional items during the quarter ended 30th June 2014 comprise of donation of Rs. 15.000 Millions given to an electoral trust, project abandonment expenses of Rs. 43.000 Millions and Exceptional items during the quarter ended 30th September 2014 is on account loss on sale of gas turbines Rs. 88.500 Millions.

In terms of Clause 46A of Accounting Standard 11 “The Effects of Changes in Foreign Exchange Rates” inserted by Notification No. G.S.R. 914(E) dated 29th December, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Company has opted, w.e.f. 1st April 2011, to capitalize the exchange differences arising on long term monetary items, in so far they relate to acquisition of depreciable capital assets.

The Company operates in a single primary business segment viz. “Chemicals”.

VIEW INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10435190	27/05/2013	990,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B78903838
2	10406949	31/01/2013	2,835,000,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B69150712
3	10343720	09/03/2012	3,075,000,000.00	ICICI BANK LIMITED	Mezzanine Floor, West Wing, ICICI Bank Limited,  Landmark, Race Course Circle, Alkapuri, BARODA, Gujarat - 390007, INDIA	B35639525
4	10334116	08/08/2013 *	1,028,710,650.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B82783432
5	10295326	26/12/2012 *	920,000,000.00	DBS Bank Ltd	Fort House , Third Floor,, 221, Dr DN Road, Fort,  Mumbai, Maharashtra - 400001, INDIA	B65088643
6	10291692	31/01/2013 *	2,835,000,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B69149342
7	10112011	21/06/2008	1,150,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A41780495

* Date of charge modification

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Claims against Company not acknowledged as debt	0.722	0.722
Other
Income Tax	821.606	871.137
Service Tax	115.546	92.434
Excise Duty	141.173	84.966
Custom Duty	98.751	122.297
Electricity Duty	120.486	120.486

Notes:

a) Amount of Rs. 809.333 Millions (previous year Rs. 548.843 Millions) has been paid in respect of above Income Tax demands and not charged to the Statement of profit and loss.

b) The Company has received CIT(A) order for the Assessment Year 2008-09 and for the Assement Year 2009 10, where in the CIT(A) has confirmed the action of the Assessing Officer in respect of

i. treatment of Investment activity of the Company in respect of investment in shares as a business activity and

ii. the re-computation of the amount of deduction u/s 80IA by applying the regulatory prices in respect of power generated at its captive power units.

The Company has not accepted the orders of the CIT (A) and has preferred appeal before ITAT, Ahmedabad. The said issues were decided in favour of the Company by CIT (A) in earlier years. Consequently, the amount of demands in respect of the above are included in the amount of contingent liabilities in para (A) including for subsequent years where assessment orders are received.

c) During the year, the Income Tax authorities have carried out survey proceedings u/s 133A of the Income Tax Act, 1961 at the Company’s corporate office. The Company has made detailed submissions on various issues raised during the course of survey proceedings and does not expect any material demand in this connection.

FIXED ASSETS

• Land
• Buildings
• Plant and Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipments

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.44
UK Pound	1	Rs. 98.15
Euro	1	Rs. 77.38

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUM
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	8
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.