MIRA INFORM REPORT

Report Date :

05.03.2014

IDENTIFICATION DETAILS

Name :	DEEPAK NITRITE LIMITED
Registered Office :	9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.06.1970
Com. Reg. No.:	04-001735
Capital Investment / Paid-up Capital :	Rs. 104.538 millions
CIN No.: [Company Identification No.]	L24110GJ1970PLC001735
TAN No.: [Tax Deduction & Collection Account No.]	PNED03452B BRDD00655E
PAN No.: [Permanent Account No.]	AAACD7468A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Chemicals.
No. of Employees :	1000 (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

Maximum Credit Limit :	USD 11000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects long operating track record in the chemical industry supported by its diversified product mix and sound financial risk profile. 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan: A+
Rating Explanation	Adequate degree of safety and low credit risk.
Date	July 2013

Rating Agency Name	ICRA
Rating	Non fund based limits: A1+
Rating Explanation	Very strong degree of safety lowest credit risk.
Date	July 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.

INFORMATION PARTED BY

Name :	Mr. Alok Kankani
Designation :	Finance Department
Contact No.:	91-265-2765200
Date :	28.02.2014

LOCATIONS

Registered Office :	9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat, India
Tel. No.:	91-265-2351013/ 2334481-82
Fax No.:	91-265-2330994
E-Mail :	investor@deepaknitrite.com srvaidya@deepaknitrite.com arkankuni@deepaknitrite.com
Website :	http://www.deepaknitrite.com
Corporate Office / Global Head Quarters :	Aaditya-I, National Highway No. 8, Chhani Road, Vadodara - 390024, Gujarat, India
Tel. No.:	91-265-276 5200
Fax No.:	91-265-234 0506
Factory 1 :	Nitrite and Nitroaromatics Division 4-12, GIDC Chemical Complex, Nandesari - Dist., Vadodara - 391340 Gujarat, India
Tel. No.:	91-265-2840639 / 47
Factory 2 :	APL Division Plot Nos. 1, 2, 26 & 27, MIDC Dhatav, Roha, Dist. Raigad - 402116
Tel. No.:	91-2194-263550 / 263750 / 264777 / 78 / 79
Factory 3 :	Taloja Chemical Division Plot No. K-10, MIDC, Taloja, A.V. District Raigad-410208, Maharashtra, India
Tel. No.:	91-22-27411125 / 26 / 27
Factory 4 :	Hyderabad Specialties Division Plot Nos. 90-F/70-A and B, Phase II, Industrial Development Area, Jeedimetla, Taluka Quthbullapur Madal, District Ranga Reddy, Hyderabad – 500055, Andhra Pradesh, India
Tel. No.:	91-40-23097401
Factory 5 :	Project site under development Plot No. 12/B GIDC, Dahej, Dist. Bharuch- 392130, Gujarat, India

DIRECTORS

As on 31.03.2013

Name :	Mr. C. K. Mehta
Designation :	Chairman
Other Directorship:	· Deepak Fertilizers and Petrochemicals Corporation Limited · Deepak Novochem Technologies Limited · Blueshell Investment Private Limited · Sofotel Infra Private Limited · The Lakaki Works Private Limited · Storewell Credits and Capital Private Limited · Deepak Asset Reconstruction Private Limited · Deepak Medical Foundation · Kawat Development Corporation · Deepak Research and Development Foundation
Name :	Mr. D. C. Mehta
Designation :	Vice Chairman and Managing Director
Name :	Mr. A. C. Mehta
Designation :	Managing Director
Name :	Mr. M. R. B. Punja
Designation :	Director
Name :	Mr. Nimesh Kampani
Designation :	Director
Name :	Mr. Sudhin Choksey
Designation :	Director
Name :	Dr. Richard H. Rupp
Designation :	Director
Name :	Mr. Sudhir Mankad
Designation :	Director
Qualification :	Masters Degree in History
Other Directorship :	· Gujarat International Finance Tec-City Co. Limited · Bhavnagar Energy Company Limited · IL&FS Education Investment and Technology Services Limited · Gruh Finance Limited · Shri Dinesh Mills Limited · Navin Fluorine International Limited · IL&FS Skills Development Corporation Limited · Gujarat Gas Company Limited
Name :	Mr. S. K. Anand
Designation :	Additional Director
Qualification :	· Bachelor of Engineering (Chemical) · Petrochemical Course · advance course on Management
Other Directorship :	· Sunrise Private Limited · Paramount Environment Private Limited · SARA Consultants Private Limited
Name :	Dr. Swaminathan Sivaram
Designation :	Additional Director*
Name :	Mr. Umesh Asaikar
Designation :	Executive Director*

Note: * Appointed with effect from May 9, 2013

KEY EXECUTIVES

Name :	Mr. Sanjay Upadhyay
Designation :	Sr. Vice President (Finance) and Company Secretary
Audit Committee :
Name :	Mr. M. R. B. Punja
Designation :	Chairman
Name :	Mr. A. K. Dasgupta
Designation :	Member
Name :	Mr. Sudhin Choksey
Designation :	Member
Name :	Mr. Sudhir Mankad -
Designation :	Member
Investors Grievance Committee :
Name :	Mr. A. K. Dasgupta
Designation :	Chairman
Name :	Mr. D. C. Mehta
Designation :	Member
Name :	Mr. A. C. Mehta
Designation :	Member
Remuneration Committee :
Name :	Mr. A. K. Dasgupta
Designation :	Chairman
Name :	Mr. S. K. Anand
Designation :	Member
Name :	Mr. Sudhir Mankad
Designation :	Member
Name :	Mr. Alok Kankani
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2190107	20.95
Bodies Corporate	3657070	34.98
Sub Total	5847177	55.93
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5847177	55.93
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1800	0.02
Financial Institutions / Banks	425	0.00
Insurance Companies	353567	3.38
Foreign Institutional Investors	625000	5.98
Sub Total	980792	9.38
(2) Non-Institutions
Bodies Corporate	815167	7.80
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2267859	21.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	515679	4.93
Any Others (Specify)	27145	0.26
Non Resident Indians	27048	0.26
Trusts	97	0.00
Sub Total	3625850	34.68
Total Public shareholding (B)	4606642	44.07
Total (A)+(B)	10453819	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)	10453819	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Chemicals.

Products :

Products Description	Item Code No.
Sodium Nitrite	283410 01
Para Nitrochlorobenzene	290490 05
Resorcinol	290721 00
Para Cumidine	290270

Exports :

Products :

Chemicals

Countries :

· USA

· UK

· Middle East

· Switzerland

· Europe

· Far East

· Singapore

· Asian Country etc.

Imports :

Products :

Raw Material

Countries :

· Taiwan

· China

· USA

· Korea

· Switzerland

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production Qty. MTS.
Inorganic Salts	MT	44350	48459
Dinitrosopentamethylene Tetramine	MT	1800	551
Dye Intermediates	MT	660	--
Nitro Aromatics	MT	38750	36072
- By Products	MT	--	29101
Aromatics Amines	MT	18000	11447
Agro Chemical Intermediates	MT	9900	9384
Colour Intermediates	MT	6600	7526
- By Products	MT	--	8756

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

1000 (Approximately)

Bankers :

· State Bank of India

· Bank of Baroda

· Dena Bank

· ICICI Bank Limited

· AXIS Bank Limited

· ING Vysya Bank

· Standard Chartered Bank

· DBS Bank Limited

· Hongkong and Shanghai Banking Corporation

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

Term Loans

Foreign Currency Loan from Banks & Financial Institutions

49.071

96.317

External Commercial Borrowings

2288.430

2022.580

Short-term borrowings

Cash Credit from Banks

451.462

127.829

Total

2788.963

2246.726

NOTE:

LONG-TERM BORROWINGS

Term Loans

The Term Loan is obtained from Bank of Baroda while External Commercial Borrowings are obtained from (a) Standard Chartered Bank Rs.652.672 Millions (Rs.606.774 Millions) (b) HSBC Bank (Mauritius) Limited Rs.815.840 Millions ( Rs.505.646 Millions) and (c) DBS Bank Limited Rs.979.007 Millions ( Rs.910.161 Millions). These are secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company.

Repayment Schedule

a) Rate of Interest of Term Loan and External Commercial Borrowings are based on LIBOR plus agreed spread.

b) Term Loan from Bank of Baroda is repayable in equal half-yearly instalments of 24.500 Millions with the last instalment payable on

March 29, 2015.

c) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis starting from August 23, 2013 with a step up repayment schedule with last instalment payable on February 23, 2018.

d) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on quarterly basis starting from March 30, 2014, with a step up repayment schedule with last instalment payable on March 29, 2018.

e) External Commercial Borrowing from DBS Bank Limited is repayable on quarterly basis starting from February 3, 2014, with a step up repayment schedule with last instalment payable on November 1, 2018.

f) Deferred sales tax loan is interest free and payable in 8 yearly instalments starting from April 2008 and last instalment payable before March, 2016.

The installments payable are as under:

Years	Rs. In Millions
2013-2014	4.306
2014-2015	2.700
2015-2016	1.019

SHORT-TERM BORROWINGS

Cash Credit from Banks are secured by a prior charge over Company's stocks of Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and by second charge on all Fixed Assets by way of hypothecation and mortgage.

Cash Credit is repayable on demand and carries interest@base rate plus range spread of 2.50% to 4.50% p.a

Banking Relations :	--
Auditors :
Name :	B.K. Khare and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Cost Auditors :
Name :	B. M. Sharma and Company Cost Accountants
Address :	Pune, Maharashtra, India
Internal Auditors :
Name :	Deloitte Haskins and Sells
Address :	Pune, Maharashtra, India
Associates :	§ Blue Shell Investment Private Limited § Check Point Credits and Capital Private Limited § Crossover Advisors Private Limited § Crossover Trustees Private Limited § Deepak Asset Reconstruction Private Limited § Deepak Cleantech Limited § Deepak Fertilisers and Petrochemicals Corporation Limited § Deepak International Limited § Deepak Medical Foundation § Deepak Research and Development Foundation § Deepak Novochem Technologies Limited § Forex Leafin Private Limited § Grey Point Investments Private Limited § Hardik Leafin Private Limited § Kawant Development Corporation § Nucore Capital Management Private Limited § Pranawa Leafin Private Limited § Prolific Credits and Capital Private Limited § Skyrose Finvest Private Limited § Sofotel Software Services Private Limited § Stepup Credits and Capital Private Limited § Stiffen Credits and Capital Private Limited § Stigma Credits and Capital Private Limited § Storewell Credits and Capital Private Limited § Sundown Finvest Private Limited § Superpose Credits and Capital Private Limited § The Lakaki Works Private Limited § Yerowada Investment Limited.

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions
2000000	Preference Shares	Rs.100/- each	Rs. 200.000 Millions
	Total		Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10453819 #	Equity Shares	Rs.10/- each	Rs. 104.538 Millions

NOTE:

# Excludes 9860 (9860) Equity Shares of 10/- each, have been kept in abeyance.

(a) Shares: Terms/Rights:

i) Authorised Shares have been classified into Equity and Preference Shares.

ii) The Company has issued Equity Shares having par value of 10/- per Share. Each holder of Equity Share 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 at the ensuing Annual General Meeting.

iii) During the year ended March 31, 2013, the amount of per Share Dividend recognised as distribution to Equity Shareholders is 8/- ( 6/-).

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. No Preferential amounts exist as on Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

(b) Reconciliation of the Shares outstanding and the amount of Share Capital at the begining and at the end of the reporting period:

Company has not issued any Equity Shares or Preference Shares during the year.

Equity Shares

Equity Shares	31.03.2013
	No.	Rs. In millions
At the beginning of the period	10453819	104.538
Issued during the period – Bonus issue	--	--
Issued during the period – ESOP	--	--
Outstanding at the end of the period	10453819	104.538

9860 (9860) Equity Shares of 10/- each, have been kept in abeyance as per pending legal proceedings.

(c) Details of Shareholders holding more than 5% Equity shares in the Company:

Name of the Shareholder	31.03.2013
	No. in millions	% holding
Equity Shares of Rs. 10/- each fully paid
Shri Deepak Chimanlal Mehta	1.727	16.52
Stiffen Credits & Capital Private Limited	0.838	8.02
Checkpoint Credits & Capital Private Limited	0.721	6.89
Stepup Credits & Capital Private Limited	0.692	6.62
Stigma Credits & Capital Private Limited	0.618	5.91
Fidelity Puritan Trust - Fidelity Low Priced	0.653	5.98

(d) 14,90,586 (14,90,586) Equity Shares of 10/- each fully paid up at a premium of 90/- per Share were alloted on Conversion of Detachable Warrants issued with Right Shares.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	104.538	104.538	104.538
(b) Reserves & Surplus	2701.436	2423.237	2274.556
(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)	2805.974	2527.775	2379.094
(3) Non-Current Liabilities
(a) long-term borrowings	2393.371	2214.761	320.132
(b) Deferred tax liabilities (Net)	21.762	20.212	17.503
(c) Other long term liabilities	36.185	31.174	31.189
(d) long-term provisions	233.549	168.029	160.759
Total Non-current Liabilities (3)	2684.867	2434.176	529.583
(4) Current Liabilities
(a) Short term borrowings	707.393	249.736	136.235
(b) Trade payables	2042.052	1396.696	647.054
(c) Other current liabilities	542.097	328.034	377.852
(d) Short-term provisions	104.447	80.283	82.310
Total Current Liabilities (4)	3395.989	2054.749	1243.451
TOTAL	8886.830	7016.700	4152.128
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3242.812	1799.339	1616.259
(ii) Intangible Assets	11.378	13.869	12.327
(iii) Capital work-in-progress	1175.520	1016.700	70.858
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	13.292	13.292	13.292
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	220.605	458.544	232.740
(e) Other Non-current assets	0.000	2.670	0.000
Total Non-Current Assets	4663.607	3304.414	1945.476
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1043.584	854.363	590.725
(c) Trade receivables	2422.517	1574.875	1279.838
(d) Cash and cash equivalents	95.005	935.377	58.745
(e) Short-term loans and advances	634.342	336.735	274.115
(f) Other current assets	27.775	10.936	3.229
Total Current Assets	4223.223	3712.286	2206.652
TOTAL	8886.830	7016.700	4152.128

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	10194.000	7898.919	6722.440
		Other Income	107.004	28.413	51.720
		TOTAL (A)	10301.004	7927.332	6774.160
Less	EXPENSES
		Cost of Raw Materials and Components Consumed	6668.373	5083.323	3902.569
		Purchase of Traded Goods	467.287	434.907	475.068
		Employee Benefits Expenses	618.565	505.755	459.166
		Power & Fuel Expenses	904.471	768.841	651.630
		Other Expenses	803.041	616.960	551.734
		Impairment Provision / (Reversal)	0.000	0.000	15.664
		(Increase)/ Decrease in Inventories of Finished Goods, Work-in-Progress and Traded Goods	10.493	(87.416)	96.005
		TOTAL (B)	9472.230	7322.370	6151.836
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		828.774	604.962	622.324
Less	FINANCIAL EXPENSES (D)		113.608	111.244	71.418
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		715.166	493.718	550.906
Less/ Add	DEPRECIATION/ AMORTISATION (F)		189.386	177.858	181.338
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		525.780	315.860	369.568
Less	TAX (H)		147.545	85.032	111.597
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		378.235	230.828	257.971
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1197.390	1089.529	954.522
	APPROPRIATIONS
		Dividend - Proposed	83.709	62.782	62.782
		Corporate Dividend Tax	14.226	10.185	10.185
		Transfer to General Reserve	50.000	50.000	50.000
	BALANCE CARRIED TO THE B/S		1427.690	1197.390	1089.529
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	4434.211	3463.852	2763.121
	TOTAL EARNINGS		4434.211	3463.852	2763.121
	IMPORTS
		Raw Materials	2243.855	1393.715	694.292
		Components, Spares Part and Stores	12.135	1.644	0.276
		Capital Goods	5.895	6.780	1.559
	TOTAL IMPORTS		2261.885	1402.139	696.127
	Earnings / (Loss) Per Share (Rs.)		36.15	22.06	24.65

Expected Sales (2013-2014) : Rs.13000.000 Millions

The above information has been parted by Mr. Alok Kankani (Finance Department)

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013	31.12.2013
	1^st Quarter	2^nd Quarter	3^rd Quarter
Audited / UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	2617.200	3145.800	3384.400
Total Expenditure	2443.800	2894.000	3074.100
PBIDT (Excl OI)	173.400	251.800	310.300
Other Income	3.600	4.300	2.700
Operating Profit	177.000	256.100	313.100
Interest	55.200	74.700	70.300
Exceptional Items	0.000	0.000	0.000
PBDT	121.800	181.400	242.800
Depreciation	67.500	74.300	75.100
Profit Before Tax	54.400	107.200	167.700
Tax	17.900	32.400	54.200
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	36.400	74.800	113.500
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	36.400	74.800	113.500

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.67	2.91	3.81
Net Profit Margin (PBT/Sales)	(%)	5.16	4.00	5.46
Return on Total Assets (PBT/Total Assets}	(%)	6.83	5.28	9.08
Return on Investment (ROI) (PBT/Networth)		0.19	0.12	0.16
Debt Equity Ratio (Total Debt /Networth)		1.11	0.97	0.19
Current Ratio (Current Asset/Current Liability)		1.24	1.81	1.77

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	104.538	104.538	104.538
Reserves & Surplus	2,274.556	2,423.237	2,701.436
Net worth	2,379.094	2,527.775	2,805.974
long-term borrowings	320.132	2,214.761	2,393.371
Short term borrowings	136.235	249.736	707.393
Total borrowings	456.367	2,464.497	3,100.764
Debt/Equity ratio	0.192	0.975	1.105

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	6722.440	7898.919	10194.000
		17.501	29.056

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	6722.440	7898.919	10194.000
Profit	257.971	230.828	378.235
	3.84%	2.92%	3.71%

LOCAL AGENCY FURTHER INFORMATION

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

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 362 of 2008

Status : PENDING

( Converted from : ST/1991/2007 )

CCIN No : 001092200800362

Last Listing Date:

10/09/2008

Coram

· HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN · HONOURABLE MR.JUSTICE AKIL KURESHI

S.NO.

Name of the Petitioner

Advocate On Record

1

THE COMMISSIONER OF INCOME TAX-I

MR KM PARIKH for: Appellant(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

DEEPAK NITRITE LIMITED

MR JP SHAH for :Opponent(s) 1
MR MANISH J SHAH for :Opponent(s) 1

Presented On

: 06/07/2007

Registered On

: 06/07/2007

Bench Category

: SINGLE BENCH

District

: VADODARA

Case Originated From

: THROUGH ADVOCATE

Listed

: 130 times

StageName

: FOR FINAL HEARING - TAX MATTERS

Act	INCOME-TAX ACT, 1961

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	15/08/2008	VAKALATNAMA	MR JP SHAH ADVOCATE for RESPONDENT(s) 1	-	MR JP SHAH:1
2	15/08/2008	VAKALATNAMA	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	-	MR KM PARIKH:1
3	15/08/2008	VAKALATNAMA	MR MANISH J SHAH ADVOCATE for RESPONDENT(s) 1	-	MR MANISH J SHAH:1
4	07/06/2012	APPEARANCE NOTE	MR KM PARIKH ADVOCATE for PETITIONER(s) 1	-	MR KM PARIKH:1
Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	08/08/2008	1	-	FOR REGULAR ADMISSION (SPL.)	NEXT DATE	· HONOURABLE MR.JUSTICE K.A.PUJ · HONOURABLE MR.JUSTICE BANKIM.N.MEHTA
2	10/09/2008	1	-	FOR FINAL HEARING - TAX MATTERS	RULE/ADMIT	· HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN · HONOURABLE MR.JUSTICE AKIL KURESHI

THE YEAR INRETROSPECT

The financial year 2012-13 proved to be a benchmark year for the Company's performance. The Company has achieved a significant milestone this year by crossing the Rs.10000.000 Millions turnover mark. Inspite of headstrong global and domestic challenges, the Company has outperformed competition and, revenues and profits have touched new highs. Turnover for FY 2012-13 stood at Rs.10040.900 Millions as compared to Rs.7769.100 Millions in FY 2011-12. These were driven by increased volumes as a result of de-bottlenecking activities and progressively higher realisations. Exports flourished and products like Fuel Additives were also major contributors to the top line.

Exports to key markets in Europe continued to remain strong and the Company enjoyed a favourable traction from its expanding presence in the US as well. The export turnover increased by 27.71% over and in absolute terms stood at Rs.4475.900 Millions in over Rs.3504.700 Millions in FY 2011-12.

Profit before Interest, Depreciation and Tax for the year was Rs.812.200 Millions as compared to Rs.588.000 Millions in the previous year. Profit After Tax was Rs.378.200 Millions as compared to Rs.230.800 Millions in FY 2011-12. Earnings per Share was Rs.361.500 Millions as compared to Rs.220.600 Millions per Share in FY 2011-12.

On the global front, the US market is showing signs of a more stable recovery while Europe seems to be facing continuing challenges. The Middle East has recovered steadily from the political unrest and China and India, though still slowly recovering, remain the key engines for global growth. The Company has shown resilience even though the global operating environment over the last few years has been demanding. Growth in exports to economies that are in economic turmoil is a testament to strong customer relationships and a growth-driven business model that the Company follows.

For the next financial year the key focus will be on expansion plans. The greenfield expansion at Dahej, will make the Company, the only player to completely backward integrate its processes and manufacture OBA (Optical Brightening Agents) from Toluene. On the other hand, the brownfield expansion at Nandesari will help the Company make a completely new foray in renewable energy which will aid in the manufacture of Solar Salts. Since many Solar Projects in India as well as overseas are temporarily delayed there is a need to mitigate the short-term risk of dependence on Solar Energy sector. With this in view, the Company has initiated Research and

Development efforts to develop salts for other applications.

The Company has also taken measures to address currency risk through prudent hedging policies as exports play a significant role.

GREENFIELD EXPANSION ATDAHEJ

The Company's new state-of-the-art greenfield plant at Dahej (District Bharuch, Gujarat) will be manufacturing OBA (Optical Brightening Agents), a Performance Chemical. This will make the Company the only fully-integrated player in the world. After the successful completion of production trial runs at its OBA Plant, the Company commenced its first stream of commercial production of OBA on March 15, 2013 involving a capex cost of around 1400.000 crores. The other part of the facility is well on track and is expected to be operational by the beginning of the second quarter of FY 2013-14.

The Company would be offering OBA at the door-step not only from the world’s largest Brightener Plant but it would be offering equally matching logistic solutions and after-sale technical services.

BROWNFIELD EXPANSION AT NANDESARI

The Company, through its brownfield expansion at Nandesari (Gujarat), envisaged a dual purpose of expanding the production capacity and also foraying into a new business segment of Solar Salts.

The Salt Project at Nandesari was set up with the objectives of meeting the emerging demand for solar salt application and for catering to the high-end Sodium Nitrite market in the US. Since many Solar Projects in India as well as overseas are temporarily delayed there is need to mitigate the short-term risk of dependence on Solar Energy sector. With this in view, the Company has initiated Research and Development efforts to develop salts for other applications. The project is expected to be operational by the first quarter of FY 2013-14.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ECONOMIC OUTLOOK

The fiscal year 2012-13 has been difficult for countries all across the globe. While the US is showing signs of improvement, Europe is still the epicenter of turmoil and is still affected by the financial crisis. Although stimulus packages have been provided to economies in Europe, they are yet to fully stabilise. Growth continues to be led by countries like India and China, which although not growing as quickly as earlier, remain the fastest growing economies on a relative basis. The Middle East is recovering from political tensions that were witnessed last year.

Japan is gradually recovering and the resultant impact is that the Bank of Japan joined the Central Banks of the US and Europe in introducing stimulus packages to spur growth.

Political and regulatory uncertainty shook the sentiment of foreign investors in India. This exacerbated the slowdown in investment activity. A drop in general business spending, declining tax collections and sustenance of populist measures led to a decline in fiscal performance. This was aggravated by increasing imports of oil and gold. All of a sudden the Indian economy was at a precipice with the threat of a sovereign rating downgrade looming.

The Government was forced into action and it responded by fast-tracking reforms on FDI in sectors such as aviation, broadcasting and multi-brand retail. This was followed by an effort to disinvest stakes in select PSUs. The oil import bill was tackled with reduction of subsidies on diesel, kerosene and LPG. Additional import duty on gold and relaxation of limits for debt investment by FIIs helped ease pressure on currency rates. The Government has followed it up with active discussions with rating agencies and the RBI.

They are witnessing gradual improvements in the operating environment with these measures. Macro pressures have eased as oil and gold prices have declined and inflation is showing signs of moderation. It is believed that the worst is over and that the economy has bottomed out.

There are still challenges that India will have to overcome as the global environment remains weak and challenges in various regions will still take some time to ease as the issues are deeper than originally envisaged and an uptick will most likely be delayed.

However, the Indian economy is resilient and although not completely out of the woods, they expect to see a gradual improvement in the economy in the current fiscal.

INDUSTRY STRUCTURE AND RECENTDEVELOPMENTS

The global chemical industry is one of the largest industries worldwide. It was estimated at $3.4 trillion in 2010. The Indian chemical industry had a size of $108 billion in 2010 and accounts for 3% of the global chemical industry (source: Indian Chemical Industry – Five Year Plan).

The Indian chemical industry is a key constituent of the Indian Industry and contributes, as estimated, 7% of the GDP. In the 12th five year plan, growth of the chemical industry is estimated between 11-15% to reach a size of $224-290 billion by 2017. India is the 3rd largest chemical market in Asia after China and Japan (source: Indian Chemical Industry – Five Year Plan).

The plan discusses Organic, Inorganic and Speciality Chemicals segments in detail. The Speciality Chemicals segment grew 11% during the 11th five year plan and is currently valued at $18 billion. It is estimated to grow at 13-14% up to $38 billion by 2017. Basic Organic chemicals are expected to grow at 12% and Inorganic chemicals are expected to grow at about 8%. The Company caters to all these segments and is expected to benefit from the growth of end user markets in these segments.

To strengthen Research and Development, the Indian Government is now undertaking initiatives like establishing a chemical sector council for innovation and also plans to establish an autonomous $100 million chemical innovation fund. It is also focusing on initiatives to make sure that feedstock availability is met and new technologies are encouraged. The chemical industry has not been attracting the best talent and this has created a shortage of skilled man power. The chemical industry requires 4.5-5 million skilled workers by FY2017. To address these needs, the Government is looking to set up specialized universities and vocational institutes to develop the skill base. Lastly, the Government is also tightening rules on environment protection to match international standards (source: Indian Chemical Industry – Five Year Plan).

It is important to note that majority of the demand for the chemical industry stems out of regions such as North America, Europe, Latin America and emerging economies in Asia. The Company supplies its products to most of these regions which gives it more scope for growth. As the manufacturing base now shifts to India and China, it can be comfortably said that the Company will benefit from this shift due to its strong presence in these markets.

COMPANY PERFORMANCE

During FY 2012-13, the turnover of the Company has increased to Rs.10040.900 Millions from Rs.7769.100 Millions in FY 2011-12. Profit before Interest, Depreciation and Tax for the year was Rs.812.200 Millions as compared to Rs.588.000 Millions in FY 2011 - 2012. Profit after Tax was higher at Rs.378.200 Millions as compared to Rs.230.800 Millions in FY 2011-12.

The Company's performance during the year has been exceptional; touching all-time highs in top line and bottom line numbers. This wasmainly due to higher volumes and increased realisations. Revenues were driven mainly from Organic and Fine and Speciality Chemical segments.

SEGMENTAL PERFORMANCE

Revenues for Organic Intermediates stood at Rs.6129.900 Millions for FY 2012-13 as compared to Rs.4609.800 Millions for FY 2011-12.

Organic Intermediate sales were higher due to increase in sales of Fuel Additives and Xylidine intermediates.

Inorganic Intermediates

Revenues for Inorganic Intermediates stood at Rs.1317.200 Millions for as compared to Rs.1321.000 Millions for FY 2011-12.

.

In the Inorganic intermediate segment showed some dip in the margins as the prices of major raw materials like caustic lye and ammonia were at their peak. The Company believes that this was an abrasion. The prices have normalized in the current year.

Fine and Speciality Chemicals

Revenues for Fine and Speciality Chemicals stood at Rs.2835.000 Millions for as compared to Rs.2205.400 Millions for FY 2011-12.

.

Fine and Speciality revenues have increased mainly because of introduction of new product in this segment.

OUTLOOK

The Company has ended FY 2012-13 on an extremely positive note. Turnover for the year touched a new high and stood at Rs.10040.900 Millions. The Company has maintained margins with Net Profits of Rs.378.200 Millions for the year.

The Company's greenfield expansion at Dahej and brownfield expansion at Nandesari are close to completion.

While with its current products, the Company serves major B2B customers in Agro chemicals, Colors and Speciality business, the OBA (Optical Brightening Agent) business would take the Company many stages forward into offering performance solutions for major customers in countries such as US, Canada, South America, Europe and South East-Asia. The Company would be offering OBA at the door-step not only from the world's largest Brightener plant but it would be offering equally matching logistic solutions and after-sale technical services. While the OBA plant comes into production, capital investments in the project would be completed. Investments in marketing and logistics and various operational trials at customers end, would lay the foundation of major long termsupply agreements with downstream industries including paper, detergents and textiles world-over.

The Company is also focused on de-bottlenecking activities in existing plants in order to make complex processes like chlorination, alkylation, absorption, nitration, to name a few, more efficient and cost competitive in the years to come.

COMPANY OVERVIEW

Subject is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine and Speciality Chemicals.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Other Loans and Advances
Deferred Sales Tax Loan	3.719	7.082
Deposits from Shareholders	0.887	1.951
Deposits from Public	51.264	86.831
Short-term borrowings
Short Term Loans from Banks	255.931	121.907
Total	311.801	217.771
Note: Short Term loan from Banks represent Packing Credit in foreign currency and Buyers' Credit against Letter of Undertaking. It is generally due within 180 days & carry interest rate in the range of LIBOR plus 1% to 3% p.a. Company has also borrowed short term working capital loan in the form of Demand Loan. It is generally due within one year & carries interest rate in the range of Base Rate plus 0.50% to 0.60% p.a.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10134988	14/05/2013 *	2,842,000,000.00	STATE BANK OF INDIA	MARBLE ARCH, RACE COURCE CIRCLE, VADODARA, GUJARAT - 390007, INDIA	B76922178
2	10096389	30/11/2011 *	100,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 4000 05, INDIA	B28233526
3	10045475	17/07/2012 *	2,500,000,000.00	AXIS BANK LIMITED	2ND FLOOR ,E, AXIS HOUSE, BOMBAY DYEING MILLS COMP, P. B. BUDHKAR MARG, WORLI,, MUMBAI, MAHARASHTRA - 400025, INDIA	B44426518

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013
a) in respect of Income Tax matters	4.692
b) in respect of Sales Tax / VAT matters	1.165
c) in respect of Excise matters	9.815
d) Bank Guarantees:
- Financial	3.570
- Performance	166.984
e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame	--
f) Disputed Labour Matters	2.285
Total	188.511

FIXED ASSETS

Tangible Assets

· Freehold Land

· Plant and Machinery

· Factory and Other Buildings

· Roads

· Office Equipment’s

· Furniture and Fixture

· Vehicles

Intangible Assets

· Goodwill

· Computer Software

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER AND Half Year ENDED SEPTEMBER, 30, 2013

(Rs. In millions)

	Particulars	Quarter Ended		Half year Ended
		30.09.2013	30.06.2013	30.09.2013
		(Unaudited)	(Unaudited)	(Unaudited)
	PART -1
1	Income from Operations
	(a) Net Sales/Income from Operations (Net of Excise Duty)	3109.190	2579.789	5688.979
	(b) Other Operating Income	36.608	37.374	73.982
	Total Income from Operations (Net)	3145.798	2617.163	5762.961
2	Expenses
	(a) Cost of materials consumed	2109.967	1724.056	3834.023
	(b) Purchases of Stock-in- trade	--	93.629	93.629
	(c) Changes in Inventories of Finished goods Work-in-progress and Stock-in-trade	(66.307)	(104.460)	(170.764)
	(d) Employee benefits expense	209.521	194.781	404.302
	(e) Depreciation and amortisation expense	74.260	67.457	141.717
	(f) Power & Fuel expense	310.373	240.533	550.906
	(g) Other expenses	330.403	295.25	625.628
	Total expenses	2968.217	2511.221	5479.438
3	Profit/(Loss) from Operations before Other income, Finance costs and Exceptional items (1-2)	177.581	105.942	283.523
4	Other Income	4.248	3.638	7.886
5	Profit/(Loss) from Ordinary activities before Finance costs and Exceptional items (3 ± 4)	181.829	109.580	291.409
6	Finance Costs	74.680	55.228	129.908
7	Profit/(Loss) from Ordinary activities after Finance costs but before Exceptional items (5 ± 6)	107.149	54.352	161.501
8	Exceptional items	--	--	--
9	Profit(Loss) from Ordinary activities before Tax (7±8)	107.149	54.352	161.501
10	Tax Expense	32.368	17.939	50.307
11	Net Profit/(Loss) from Ordinary activities after Tax (9+10)	74.781	36.413	111.194
12	Extraordinary items (Net of Tax expenses)	--	--	--
13	Net Profit/(Loss) for the period (11 ±12)	74.781	36.413	111.194
14	Paid-up Equity Share Capital (Face Value of Rs. 10/- each)	104.538	104.538	104.538
15	Reserve excluding Revaluation Reserves as per Balance Sheet of previous accounting year
16.i	Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualised)
	a) Basic	7.15	3.48	10.63
	b) Diluted	7.15	3.48	10.63
16.ii	Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualised)
	a) Basic	7.15	3.48	10.63
	b) Diluted	7.15	3.48	10.63
	PART - II
A.	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of Shares	4540912	4606642	4540912
	- Percentage of Shareholding	43.44	44.07	43.44
2	Promoters and promoter group shareholding (a) Pledged / Encumbered
	- Number of shares	--	--	--
	- Percentage of shares (as a % of the total shareholding of the Promoters and Promoter group)	--	--	--
	- Percentage of shares (as a % of the total share capital of the Company)	--	--	--
	(b) Non-encumbered
	- Number of shares	5912907	5847177	5912907
	- Percentage of shares (as a % of the total shareholding of the Promoters and Promoter group)	100.00	100.00	100.00
	- Percentage of shares (as a % of the total share capital of the Company)	556.56	55.93	556.56

B. Investor Complains	3 Months ended 30.09.2013
Pending at the beginning of the quarter	Nil
Received during the quarter	1
Disposed off during the quarter	1
Remaining unresolved at the end of the quarter	Nil

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In millions)

	Particulars	Quarter Ended				Half year Ended
		30.09.2013	30.06.2013			30.09.2013
		(Unaudited)	(Unaudited)			(Unaudited)
1	Segment Revenue:
	a) Inorganic Intermediates	386.995		337.285	724.280
	b) Organic Intermediates *	1869.481		1663.768	3533.249
	c) Fine & Speciality Chemicals	850.063		622.653	1472.716
	d) Others	129.163		38.633	167.796
	Total	3235.702		2662.339	5898.041
	Less : Inter segment revenue	89.904		45.176	135.080
	Net Sales/Income from operations	3145.798		2617.163	5762.961
	* Includes Trading Turnover	--		103.578	103.578
2	Segment Results before Tax & Interest:
	a) Inorganic Intermediates	48.473		42.953	91.426
	b) Organic Intermediates	219.390		173.562	392.952
	c) Fine & Speciality Chemicals	113.146		80.571	193.717
	Total	381.009		297.086	678.095
	Less: i) Interest	74.680		55.228	129.908
	ii) Other un-allocable expenditure	199.180		187.506	386.686
	Net of un-allocable Income
	Total Profit Before Tax	107.149		54.352	161.501
3	Capital Employed:
	a) Inorganic Intermediates	1023.642		704.627	1023.642
	b) Organic Intermediates	2218.764		2054.365	2218.764
	c) Fine & Speciality Chemicals	1461.948		1456.424	1461.948
	d) Other unallocable	3507.534		3034.444	3507.534
	Total	8211.888		7249.860	8211.888

NOTE:

The quarter’s financial results have been impacted on account of expenses post capitalization of the Optical Brightening Agents project at Dahej and volatile foreign exchange market conditions.

Previous period/year’s figures have been regrouped/reclassified, where necessary, to make them comparable with the current figures.

The Statutory Auditors of the Company have conducted Limited Review of the results for the quarter ended September 30, 2013.

The above Unaudited financial results were reviewed by the Audit Committee and have been considered and approved by the Board of Directors at their meeting held on October 31, 2013.

Statement of Assets and Liabilities as required under clause 41 (V) (h) of listing agreement

(Rs. In Millions)

SOURCES OF FUNDS	30.09.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	104.538
(b) Reserves & Surplus	2814.572
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	2919.110
(3) Non-Current Liabilities
(a) long-term borrowings	2523.865
(b) Deferred tax liabilities (Net)	281.903
(c) Other long term liabilities	24.004
(d) long-term provisions	40.593
Total Non-current Liabilities (3)	2870.365
(4) Current Liabilities
(a) Short term borrowings	2026.909
(b) Trade payables	1124.097
(c) Other current liabilities	785.620
(d) Short-term provisions	11.564
Total Current Liabilities (4)	3948.190
TOTAL	9737.665
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	5189.086
(b) Non-current Investments	31.222
(c) Deferred tax assets (net)	--
(d) Long-term Loan and Advances	296.092
(e) Other Non-current assets	--
Total Non-Current Assets	5516.400
(2) Current assets
(a) Current investments	--
(b) Inventories	1172.920
(c) Trade receivables	2392.053
(d) Cash and cash equivalents	61.238
(e) Short-term loans and advances	577.660
(f) Other current assets	17.394
Total Current Assets	4221.265
TOTAL	9737.665

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.61.90
UK Pound	1	Rs.103.26
Euro	1	Rs.85.14

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--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	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		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.