MIRA INFORM REPORT

Report Date :

21.06.2014

IDENTIFICATION DETAILS

Name :	NAVIN FLUORINE INTERNATIONAL LIMITED
Registered Office :	2^nd Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai – 400057, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.06.1998
Com. Reg. No.:	11-115499
Capital Investment / Paid-up Capital :	Rs. 97.572 Millions
CIN No.: [Company Identification No.]	L24110MH1998PLC115499
TAN No.: [Tax Deduction & Collection Account No.]	MUMP14428B
PAN No.: [Permanent Account No.]	AABCP0464B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Fluorine Chemistry, Refrigeration Gases, Some Basic Building Block Fluorides and Specialty Organofluorines.
No. of Employees :	584 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 :	Clear
Comments :	Subject is a well-established company having fine track record. Sales turnover of the company has declined during financial year 2014. However, the rating reflects well-established position of the company in the fluorochemicals industry supported by comfortable financial risk profile and adequate liquidity position. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “AA”
Rating Explanation	High degree of safety and very low credit risk.
Date	10.09.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	10.09.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	2nd Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India
Tel. No.:	91-22-66509999/ 24043300
Fax No.:	91-22-66509800
E-Mail :	info@navinfluorine.com info@nfil.in crams@nfil.in bulkfluoride@nfil.in speciality@nfil.in refrigerants@nfil.in partha.roychowdhury@navinflurine.com
Website :	http://www.nfil.in
Factory 1 :	P. O. Bhestan, Udhana – Navsari Road, Surat – 395023, Gujarat, India
Tel. No.:	91-261-2890325
Fax No.:	91-261-2890288
E-Mail :	surat@navinfluorine.com
Factory 2 :	New Industrial Area, Agra Bombay Road, Dewas – 455002, Madhya Pradesh, India
Tel. No.:	91-727-2403015
Fax No.:	91-727-2259362
E-Mail :	dewas@navinfluorine.com
Sales Offices :	Located At: · Mumbai · Chennai · New Delhi · Surat · Hyderabad
International Sales Office 1 :	Navin Fluorine International Limited 47 Bond Street, Bridgewater, NJ 08807
Tel. No.:	908-243-0159
Fax No.:	908-450-1311
E-Mail :	info@nfil.in
International Sales Office 2 :	Manchester Organics Limited The Heath Business & Technical Park, Runcorn, Cheshire, WA7 4QX, United Kingdom
Tel. No.:	44 (0) 1928 710 200
Fax No.:	44 (0) 1928 710 225
E-Mail :	info@manchesterorganics.com

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Hrishikesh A. Mafatlal
Designation :	Chairman
Date of Birth/ Age:	58 Years
Expertise in functional areas :	He is an Industrialist having diversified experience of more than 35 years in the areas of Textiles, Chemicals, Petrochemicals, Financial Services etc.
Date of Appointment :	25.06.1998
Name :	Mr. S.S. Khanolkar
Designation :	Managing Director
Date of Appointment :	01.01.2011
Name :	Mr. T. M.M. Nambiar
Designation :	Director
Date of Birth/ Age:	77 Years
Qualification :	B.Com, A. C.A.
Expertise in functional areas :	Having vast experience of over 51 Years and was associated as President / Chairman/ Member of the prestigious Institutions like Cement Manufacturers Association, National Council for Cement and Building Materials and Development Council for Cement Industry, The Associated Chamber of Commerce and Industry of India, Bombay Chamber of Commerce etc. He was associated for more than 26 years with Associated Cement Company Ltd. including 6 years as Managing Director.
Date of Appointment :	03.03.2003
Name :	Mr. Pradip N. Kapadia
Designation :	Director
Date of Birth/ Age:	62 Years
Qualification :	B.A, LL.B Having experience of more than 36 Years in the legal field. He is the Partner of Vigil Juris, Advocates and Solicitors, Mumbai.
Expertise in functional areas :	Advocate and Solicitor.
Date of Appointment :	21.01.2003
Name :	Mr. Sunil S. Lalbhai
Designation :	Director
Date of Birth/ Age:	53 Years
Qualification :	B. Sc, M.S (Chemistry), U.S.A, M.S (Economy Planning and Policy), Boston, U.S.A.
Expertise in functional areas :	He is an Industrialist having varied experience of more than 30 years in chemical and general management.
Date of Appointment :	03.03.2003
Name :	Mr. S.M. Kulkarni
Designation :	Director
Date of Birth/ Age:	75 years
Qualification :	B.E, Fellow, Institute of Management-U.K., Fellow Indian Institution of Engineers and Fellow Institute of Directors U.K.
Expertise in functional areas :	Corporate and Business Advisor
Date of Appointment :	19.10.2006
Name :	Mr. V. P. Mafatlal
Designation :	Director
Date of Birth/ Age:	40 years
Qualification :	B.Sc (Economics) University of Pennsylvania, Wharton School, U.S.A
Expertise in functional areas :	Textiles and Chemicals. Industrialist having business experience of more than 17 Years in Textiles and Chemicals.
Date of Appointment :	21.01.2003
Name :	Mr. S.G. Mankad
Designation :	Director
Date of Birth/ Age:	67 Years
Qualification :	I.A.S (Retd.) M.A. (History) Delhi University, Diploma in Development Studies, Cambridge University.
Expertise in functional areas :	He is a retired IAS Officer. He was the Chief Secretary to Government of Gujarat from 2005 to 2007 and has also held important positions in Government of India (Ministries of Finance, Agriculture and Human Resource Development) and Government of Gujarat.
Date of Appointment :	29.04.2011
Name :	Mr. H. H. Engineer
Designation :	Director
Date of Birth/ Age:	66 Years
Qualification :	Diploma in Business Management from Hazarimal Somani College, Mumbai. Bachelor of Science, Mumbai University.
Expertise in functional areas :	He has varied experience of over 44 years in the Banking Sector. He retired as an Executive Director, Wholesale Banking of HDFC Bank Limited.
Date of Appointment :	23.10.2013
Name :	Mr. Atul Kumar Srivastava
Designation :	Finance Director
Date of Birth/ Age:	61 Years
Expertise in functional areas :	Finance Accounting, Taxation and Commerce
Date of Appointment :	21.01.2003

KEY EXECUTIVES

Name :	Mr. N. B. Mankad
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	484841	4.97
Bodies Corporate	3240508	33.20
Any Others (Specify)	65145	0.67
Trusts	65145	0.67
Sub Total	3790494	38.83
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3790494	38.83
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	292279	2.99
Financial Institutions / Banks	5132	0.05
Foreign Institutional Investors	785010	8.04
Sub Total	1082421	11.09
(2) Non-Institutions
Bodies Corporate	747398	7.66
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3328490	34.10
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	720748	7.38
Any Others (Specify)	91546	0.94
Trusts	838	0.01
NRN	90708	0.93
Sub Total	4888182	50.08
Total Public shareholding (B)	5970603	61.17
Total (A)+(B)	9761097	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)	9761097	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fluorine Chemistry, Refrigeration Gases, Some Basic Building Block Fluorides and Specialty Organofluorines.

GENERAL INFORMATION

No. of Employees :

584 (Approximately)

Bankers :

· State Bank of Hyderabad

· Axis Bank Limited

· HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Cash credit from banks	379.104	470.416
Buyers' credit from banks	0.000	163.647
Total	379.104	634.063
SHORT TERM BORROWINGS Cash credit and buyers’ credit from banks are secured by hypothecation of certain stocks and book debts of the Company, both present and future and second charge created / to be created on all the fixed assets of the company situated at Bhestan and certain fixed assets at Dewas.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Solicitors :	Vigil Juris
Enterprises over which key management personnel and their relatives are able to exercise significant influence :	· Mafatlal Industries Limited · Mafatlal Fabrics Private Limited · NOCIL Limited · Seth Navinchandra Mafatlal Foundation Trust · Sri Sadguru Seva Sangh Trust
Joint Venture :	Swarnim Gujarat Fluorspar Private Limited
Subsidiary Company :	· Sulakshana Securities Limited · Manchester Organics Limited
A partnership firm where the Company is a majority partner :	Urvija Associates

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,761,097	Equity Shares	Rs. 10/- each	Rs. 97.611 Millions
	Less: Calls in arrears		Rs. 0.039 Million
	Total		Rs. 97.572 Millions

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

Particulars	Opening balance	Buyback	Closing balance
Equity shares with voting rights
Year ended 31 March, 2014
- Number of shares	9,761,097	--	9,761,097
- Amount	97.611	--	97.611

b. Terms / rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. During the year ended 31 March 2014, the amount of dividend, per share, recognized as distributions to equity shareholders is Rs.16/- (year ended 31 March, 2013, Rs.15/-)

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

Equity shares of Rs.10/- each fully paid	31 March, 2014
Name	Nos.	% holding
Mafatlal Impex Private Limited	1,085,193	11.12
Suremi Trading Private Limited	646,081	6.62
NOCIL Limited	566,340	5.80

d. For details of shares reserved for issue under the employee stock option (ESOP) plan of the company.

e. During the period of five years immediately preceding the reporting date:

Pursuant to the decision of the Board of Directors of the Company taken in its meeting dated 24 September, 2010, the Company bought back 338,792 equity shares of nominal value of Rs.10/- each at a price of Rs. 400/- per share for an aggregate value of Rs.135.517 Millions during 2010-11 under Section 77A of the Companies Act, 1956 through tender offer by utilising the Securities premium account to the extent of Rs.132.129 Millions. The Capital redemption reserve was created out of General reserve for Rs.3.388 Millions being the nominal value of shares thus bought back. All the equity shares bought back were extinguished by 5 March, 2011.

f. Calls unpaid (by other than officers and directors)

	31 March, 2014
7,871 (previous year 7,891) equity shares of Rs.10/- each, Rs.5/- called up but unpaid	0.039

g. Out of the rights issue made in 2004-05, 109 equity shares could not be offered on rights basis due to the non-availability of details of beneficial holders from depositories. The same are kept in abeyance.

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	97.572	97.572	97.569
(b) Reserves & Surplus	5320.980	4997.060	4736.151
(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)	5418.552	5094.632	4833.720
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	331.558	325.646	286.392
(c) Other long term liabilities	230.551	204.959	201.405
(d) long-term provisions	38.449	33.958	28.351
Total Non-current Liabilities (3)	600.558	564.563	516.148
(4) Current Liabilities
(a) Short term borrowings	569.957	832.392	933.439
(b) Trade payables	582.358	501.488	451.537
(c) Other current liabilities	135.129	123.886	101.832
(d) Short-term provisions	115.402	97.294	765.329
Total Current Liabilities (4)	1402.846	1555.060	2252.137
TOTAL	7421.956	7214.255	7602.005
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2252.005	2295.835	2354.598
(ii) Intangible Assets	7.616	8.906	9.913
(iii) Capital work-in-progress	53.118	87.064	52.304
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1344.935	1651.789	1859.420
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	552.144	518.109	459.168
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	4209.818	4561.703	4735.403
(2) Current assets
(a) Current investments	1284.482	814.618	190.000
(b) Inventories	572.662	719.322	840.161
(c) Trade receivables	828.701	708.455	623.935
(d) Cash and cash equivalents	252.803	274.656	1050.218
(e) Short-term loans and advances	254.584	124.117	112.140
(f) Other current assets	18.906	11.384	50.148
Total Current Assets	3212.138	2652.552	2866.602
TOTAL	7421.956	7214.255	7602.005

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	4491.384	5246.937	7038.585
		Other Income	293.623	138.525	910.053
		TOTAL (A)	4785.007	5385.462	7948.638
Less	EXPENSES
		Cost of Materials Consumed	2085.889	2478.866	2519.651
		Purchases of Stock-in-Trade	44.265	61.986	55.709
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.833)	(1.476)	(107.379)
		Employees benefits expense	482.719	441.619	408.757
		Other expenses	1278.246	1461.599	1664.788
		TOTAL (B)	3884.286	4442.594	4541.526
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		900.721	942.868	3407.112
Less	FINANCIAL EXPENSES (D)		53.963	60.974	35.419
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		846.758	881.894	3371.693
Less/ Add	DEPRECIATION/ AMORTISATION (F)		205.507	196.117	177.342
	PROFIT BEFORE TAX (E-F) (G)		641.251	685.777	3194.351
Less	TAX (H)		134.612	254.144	881.995
	PROFIT AFTER TAX (G-H) (I)		506.639	431.633	2312.356
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	1078.181	1357.110	1616.231
		FOB value of carbon credits	0.000	571.054	2519.001
		Contract Research Income	249.853	136.872	18.647
	TOTAL EARNINGS		1328.034	2065.036	4153.879
	IMPORTS
		Raw Materials	1146.372	1459.903	1879.698
		Stores, spares and packing materials	14.702	7.203	7.788
		Capital Goods	16.653	3.690	31.698
	TOTAL IMPORTS		1177.727	1470.796	1919.184
	Earnings Per Share (Rs.)		51.90	44.22	236.90

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	10.59	8.01	29.09
Net Profit Margin (PBT/Sales)	(%)	14.28	13.07	45.38
Return on Total Assets (PBT/Total Assets}	(%)	10.65	12.52	56.14
Return on Investment (ROI) (PBT/Networth)		0.12	0.13	0.66
Debt Equity Ratio (Total Debt/Networth)		0.11	0.16	0.19
Current Ratio (Current Asset/Current Liability)		2.29	1.71	1.27

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	97.569	97.572	97.572
Reserves & Surplus	4736.151	4997.060	5320.980
Net worth	4833.720	5094.632	5418.552
long-term borrowings	0.000	0.000	0.000
Short term borrowings	933.439	832.392	569.957
Total borrowings	933.439	832.392	569.957
Debt/Equity ratio	0.193	0.163	0.105

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	7038.585	5246.937	4491.384
		(25.455)	(14.400)

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	7038.585	5246.937	4491.384
Profit	2312.356	431.633	506.639
	32.85%	8.23%	11.28%

LOCAL AGENCY FURTHER INFORMATION

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10085926	09/05/2012 *	750,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B39932413
2	10029585	14/06/2012 *	750,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B45328804
3	80016822	13/02/2013 *	500,000,000.00	AXIS BANK LIMITED	UNIVERSAL INSURANCE BUILDING, GRD. FLOOR, SIR P M ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B69781938
4	90145649	09/05/2012 *	900,000,000.00	STATE BANK OF HYDERABAD	OVERSEAS BRANCH,1204, ASHOK MAHAL, TULLOCH ROAD,  COLABA, MUMBAI - 400039, MAHARASHTRA, INDIA	B39872213

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Commercial paper	190.853	198.329
Total	190.853	198.329

CORPORATE INFORMATION

Subject is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay, Ahmedabad and National stock exchanges. The Company belongs to the reputed Arvind Mafatlal Group in India. Established in 1967, it has the largest integrated fluorochemicals complex in India. The Company primarily focuses on fluorine chemistry, producing refrigeration gases, some basic building block fluorides and specialty organofluorines. Its manufacturing facilities are located at Surat, Gujarat and Dewas, Madhya Pradesh.

AMALGAMATION

With effect from 1 April, 2012 Mafatlal Denim Limited (MDL) has been amalgamated with MIL under the composite scheme of arrangement and amalgamation of MDL and Mishapar Investments Limited with MIL. Consents of the Honorable High Courts of Bombay and Gujarat for the scheme were received and filed with the Registrar of Companies (ROC) during the year. On the amalgamation becoming effective during the year, NFIL received shares of MIL in lieu of the MDL shares of the same value.

YEAR IN RETROSPECT

Profit after tax (PAT) increased by 17% from Rs.431.600 Millions to Rs.506.600 Millions despite an erosion of income from sale of carbon credits by Rs.571.100 Millions compared to the previous year and the Profit before tax (PBT) declined by 6% from Rs.685.800 Millions to Rs.641.200 Millions. This has been the first full year of operations of the Company without any income from sale of carbon credits since 2007-08. Turnover declined by 14% from Rs.5246.900 Millions to Rs.4491.400 Millions during the year. Overall revenues from operations however, declined by a marginal 4%. Performances of the individual verticals have been a mixed experience. Revenues from inorganic fluorides and Contract Research and Manufacturing Services (CRAMS) grew by 14% and 82% respectively, but they have been off-set by 12% decline in both the refrigerant gases and specialty verticals over the previous year.

This is the second consecutive year of the Indian rupee sharply weakening against the US Dollar. Last year, from a level of 49 the Indian rupee moved down to 54/55 and in 2013-14 it went all the way down to 68 in August’ 13 before settling at 60 at the end of March 2014. While the depreciating rupee continued to put inflationary pressures on the domestic market, the other indices of the Indian economy like, GDP growth, industrial production, consumer demand, housing sector growth, etc. also remained depressed. The only silver lining was the boost in the export earnings on account of a weak Indian Rupee.

Given the challenges of the business environment, during the current fiscal, the Company embarked on an aggressive plan to strengthen the resilience and sustainability of its various business verticals and improve the operating efficiencies across its manufacturing and materials management functions. Many work-practices and standard operating procedures were reviewed and modified to bring in overall permanent cost efficiencies in input- output norms, energy usages, import-export points, parcel sizes, etc. The combination of all these efforts helped the Company maintain a healthy PBT and improve its PAT during the current fiscal. Going forward, these initiatives will also strengthen the competitiveness of the products in the international markets.

The CRAMS business has grown in line with its business plan to a respectable level of Rs.255.900 Millions for the current year. The offerings by the Company in the dedicated fluorine space have been well accepted by the international community of pharma researchers and formulators. In 2013-14 more than 40 molecules have been developed, worked on and delivered to more than 15 global pharma and agro majors. Encouraged by the excellent response from a large community of diverse global players the Company decided to embark on an ambitious expansion of its contract manufacturing by investing Rs.650.000 Millions at its Dewas site to enable it to deliver ton level quantities in larger batch sizes. The new capacity is expected to come on stream in the first quarter of the next fiscal. Alongside augmenting its delivery capabilities, the Business Unit (BU) is also enhancing its marketing reach in the US West coast and Japan by having a direct representation in those geographies in addition to Europe, where Manchester Organics Limited (MOL), the UK based subsidiary of the Company has a strong presence. The NFIL-MOL combine has also worked well together to garner a higher share in the contract research and manufacturing space of fluorinated molecules.

The inorganic fluorides have grown by 14% during the year despite a very challenging domestic market by achieving higher volumes of potassium and sodium fluorides and price increases across its product range. It has also initiated exports in a good way which has a potential to grow in the coming years thereby improving capacity utilization in the BU and insulating the overall revenues of the Company from market and product related uncertainties. The BU has been ably supported by in-house R and D initiatives.

The Refrigerant Gases business remained under severe price pressures during the year. Disconnect between the input costs and product prices continued through the year due to a global demand - capacity imbalance. There has been a 12% decline in the revenues from this BU on the back of weak pricing despite sustained volumes.

The specialty BU also suffered a 12% decline due to weak demand of some of its strong products. However, it could access price escalations from exports due to a weak rupee. It could also achieve modest price increases in the domestic market due to its unique market position in some of the critical high value products.

The Company has a high exposure to fuel price movement as all its BUs, except CRAMS have high materials handling. But, despite a 15% rise in the price of diesel during the year the logistics costs could be managed within limits as Hazira port became operational for containerized cargos during the year. The Company will continue to enjoy this permanent advantage due to the proximity of Bhestan plant, which, by far is the largest operations of the Company, to Hazira.

Through the year the technology teams worked relentlessly to improve productivity, quality and costs of the flag-ship products to offer a competitive marketing edge to the Bus on one hand and flexibility of sourcing to the supply chain on the other.

During the year substantial quantities of non-Chinese fluorspar (the most important raw material) have been used while maintaining and improving product quality. This helped the supply chain to cap the cost of fluorspar, which is completely imported, despite a sharp depreciation in rupee. Sulphur another key raw material, which is linked to its international price experienced more than 20% inflation during the year. Here again, the manufacturing group made modifications in the plant to enable usage of cheaper molten sulphur. The operations group also successfully managed energy consumption to keep the overall energy costs at acceptable levels despite a 25% increase in natural gas price on the back of a weak rupee.

During the year a conservative stocking strategy for raw materials was followed to remain closer to the market price of all the raw materials and access the resultant movement in the finished product prices. This helped in successful inventory management and maintain a low average working capital through the year.

The company maintained a good financial health with a sizeable treasury income. The basEl II rating of the Company is maintained at ‘CARE AA-’ (indicating high degree of safety regarding timely servicing of financial obligations and very low credit risk) for borrowings with a tenure of more than one year and fund-based facilities. The rating for short-term facilities (less than one year) has been maintained at‘ CARE A+’(indicating very strong degree of safety regarding timely servicing of financial obligations and lowest credit risk) for its non-fund based facilities. The Company is fully committed to its responsibilities in health, safety and environmental (HSE) management and has continued to make sizable investments in HSE during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

The economic slowdown is expected to have bottomed out last year. A spell of global financial turbulence caused capital outflows and pressure on the exchange rate, but strong policy measures stabilized the currency, rebuilt reserves, and narrowed the excessive current account deficit. Weaknesses remain, however, and include persistent inflation, fiscal imbalances, bottlenecks to investment, and inefficiencies that require structural reforms. Without a systemic resolution, growth is forecast to pick up modestly.

However, they are optimistic about their prospects as the Indian economy works towards its recovery and with their wide ranging capabilities; they expect to deliver a strong performance going forward.

India is likely to grow by 5.6 per cent in 2014-15 against a projected growth of less than 5 per cent in the current fiscal. The global economy in 2014 appears to be in a better shape than what it was in 2012 and 2013. The economic growth in F.Y. 2015 is likely to be contributed majorly by the industrial sector, which is estimated to grow by 4.1 per cent.

GLOBAL FLUOROCHEMICALS INDUSTRY OUTLOOK

The global scenario for chemicals during the year was mixed, as the US and EU faced sluggish local economies due to high unemployment levels, sovereign debt crisis and declining output levels. In recent years, the global chemical industries have moved eastward towards Asia and the Middle East with major hubs being set up in these regions. India faces major competition from hubs in China, Singapore and the Middle East for which it needs to maintain competitiveness and cost.

The global fluorochemicals market is expected to reach USD 24.99 billion by 2020. Positive demand outlook from key application markets such as refrigeration, HVAC, pharmaceuticals, aluminium, steel and electronic consumables is expected to drive fluorochemicals sales over the next six years. The gradual recovery of automotive industry, especially in Asia and increasing application scope for fluoropolymers in chemical processing, construction, electronics, automotive, cookware and medical is also expected to drive fluorochemicals demand over the forecast period.

Fluorocarbons dominated the global market, accounting for over 52% of global fluorochemicals volumes in 2013. Hydrochlorofluorocarbon (HCFC), accounting for over 60% of the total fluorocarbon market, is currently being phased out by Hydro FluoroCarbon (HFC) and other products, owing to regulatory pressure. As a result, HCFC demand will decline going forward. Demand for HFCs grew considerably from 2001 to 2011, and they will continue their strong advances as replacements for HCFCs in the developing world. However, concerns over the global warming potential (GWP) of HFCs will begin to limit demand, particularly in Western Europe, presenting opportunities for low-GWP HFO fluorocarbons to penetrate the market.

Being the largest global market for automotive, pharmaceuticals, electronic consumables and chemical processing, Asia Pacific dominated fluorochemicals demand in 2013, accounting for over 46% of global volumes. Asia Pacific fluorochemicals market revenue is expected to reach USD 11.68 billion by 2020. North America and Europe, relatively mature markets, are estimated to grow at a CAGR of 2.8% and 3% from 2014 to 2020, respectively.

SEGMENT ANALYSIS

REFRIGERANTS

The Company has a near forty year history of manufacturing and selling HCFC 22 in India, Middle-East and South Asia. Its Mafron brand is a generic name for refrigerant gases in the country and a preferred choice for original equipment manufacturers, service technicians and equipment owners. It has a distribution network of 120 strong distributors in India and overseas. The Company’s refrigerant products are exported to South Asia, South-East Asia, the Middle-East and Turkey.

In 2013-14, the Company derived 32% percent of its refrigerant revenues from international markets (same as the previous year) while the rest was marketed within India. The Refrigerant Gases business remained under severe price pressures during the year. Disconnect between the input costs and product prices continued through the year due to a global demand-capacity imbalance. There has been a 12% decline in the revenues from this BU on the back of weak pricing despite sustained volumes. The division also engaged in HFC134a trading, mainly importing in bulk, repackaging and selling in the domestic market.

As informed earlier the division’s CER income ceased with effect from 31 December, 2012.

SPECIALTY CHEMICALS

The Company’s specialty segment manufactures fluorine based molecules with niche applications in the specialized petrochemicals, pharmaceutical and agrochemical segments.

The division has a rich fluorine chemistry competence backed by a robust research set-up. 36% of its revenue is derived from international business.

The specialties business withered weak demand of some of its high-selling products through the year. However, the business could access price escalations from exports due to a weak rupee scenario. It could also achieve modest price increases in the domestic market due to its unique value proposition. During the year the division introduced 2 (previous year 6) new fluorinated compounds with growing applications in the pharmaceutical and agrochemical sectors. The Company expects to work closely with customers and introduce new products to widen its customer base.

INORGANIC FLUORIDES

This segment caters mainly to the steel sector and also has dominant applications in the glass, pharmaceutical and agrochemical industries.

The inorganic fluorides BU grew by 14% during the year despite very challenging domestic market situations, by growing volumes of new organic fluorides and modest price increases across its product range. It has also initiated its exports business which has a potential to grow in the coming years thereby improving capacity utilization in the BU and insulating the overall revenues of the Company from market and product related uncertainties.

The division also introduced a compound for the glass industry in the current year, providing cost competitiveness. The product has a high potential to grow both in the domestic and international markets in the coming years.

CONTRACT RESEARCH AND MANUFACTURING SERVICES (CRAMS) AND RESEARCH AND DEVELOPMENT

The Contract research and manufacturing services is a new vertical the company ventured into two years back. During the year, the division posted a handsome turnover of Rs.260.000 Millions which is expected to strongly grow in FY 15 and the future years. This is a research and knowledge based initiative to cater to the rapid product development need of the major global pharma and agro companies in Europe, United States and Japan. In addition to bringing in the advantages of cost and time, Navin Fluorine brings to its customers a vast experience of synthesising fluorinated compounds.

Encouraged by the excellent responses from a large community of diverse global players the Company decided to embark on an expansion of its contract manufacturing facility by investing Rs.650.000 Millions at its Dewas site to enable it to deliver ton level quantities in larger batch sizes. The new capacity is expected to come on stream in the first quarter of the next fiscal. Alongside augmenting its delivery capabilities, the BU is also enhancing its marketing reach in the US West coast and Japan by having a direct representation in those geographies in addition to US East coast and Europe, where Manchester Organics Limited (MOL), the UK based subsidiary of the Company has a strong presence. The NFIL-MOL combine has also worked well together to garner a higher share in the contract research and manufacturing space of fluorinated molecules.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
a. Excise matters disputed in appeal These relate to MODVAT on capital purchases (pending before the Assistant Commissioner) and permit fee on purchase of alcohol (pending before the High Court)	12.752	15.820
b. Claims against the Company not acknowledged as debts Labour matters involving issues like regularization of employment, termination of employment, compensation against severance, etc.	1.764	2.265
c. Sales-tax matters disputed in appeal These relate to classification of goods and consequent dispute on the rates of sales-tax (pending at various stages from Assistant Commissioner to High Court)	20.050	19.949
d. Income tax matters disputed in appeal	72.102	80.561
Total	106.668	118.595

FIXED ASSETS:

Tangible assets

· Freehold land

· Leasehold land

· Buildings

· Plant and machinery

· Furniture and fixtures

· Vehicles

· Office equipment

Intangible assets

· 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 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] 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. 60.28
UK Pound	1	Rs. 102.77
Euro	1	Rs. 82.12

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	BVA

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	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		60

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.