MIRA INFORM REPORT

Report Date :

02.10.2014

IDENTIFICATION DETAILS

Name :	ATUL LIMITED (w.e.f.31.07.1996)
Formerly Known As :	ATUL PRODUCTS LIMITED
Registered Office :	Ashoka Chambers, Rasala Marg, Eillsbridge, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.12.1975
Com. Reg. No.:	04-002859
Capital Investment / Paid-up Capital :	Rs.296.800 Millions
CIN No.: [Company Identification No.]	L99999GJ1975PLC002859
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Dyestuff Chemicals, Drugs and Pharmaceuticals.
No. of Employees :	2761 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Not Available
Comments :	Subject is an established company having fine track record. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

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

INDIAN ECONOMIC OVERVIEW

N E W S

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

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

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

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

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

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facility = AA
Rating Explanation	Having high degree of safety and carry very low credit risk
Date	16.01.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facility = A1+
Rating Explanation	Having strong degree of safety and carry lowest credit rise.
Date	16.01.2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE

[CONTACT NO.: 91-2632-233261]

LOCATIONS

Registered Office :	Ashoka Chambers, Rasala Marg, Eillsbridge, Ahmedabad - 380006, Gujarat, India
Tel. No.:	91-79-26423706/ 26427520/ 26449294/ 26460520
Fax No.:	91-79-26404111
E-Mail :	wk.ag@atul.co.in wk.ar@atul.co.in wk.cl@atul.co.in fi@atul.co.in sec@atul.co.in ahd@atul.co.in jayesh_desai@atul.co.in nirali_solanki@atul.co.in
Website :	http://www.atul.co.in
Head Office :	Colours Division Post Atul, Valsad – 396020, Gujarat, India
Tel. No.:	91-2632-233261/ 5
Fax No.:	91-2632-233619 / 233375 / 233024 / 233619 / 233384
E-Mail :	sec@atul.co.in
Mumbai Office :	310 B, Veer Savarkar Marg, Adjacent to Prabhadevi Telephone Exchange, Opposite India United Mills, Prabhadevi, Dadar (West), Mumbai-400028, Maharashtra, India
Tel. No.:	91-22-39876000
Fax No.:	91-22-24376061 / 24386065
E-Mail :	mum@atul.co.in
Factory 1 :	297, GIDC Industrial Estate, Ankleshwar - 393002, Gujarat, India
Factory 2 :	Atul, District Valsad - 396020, Gujarat, India
Factory 3 :	MIDC, Tarapur, Thane - 401506, Maharashtra, India
Factory 4 :	GIDC, Kharod, District Bharuch - 394115, Gujarat, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. S S Lalbhai
Designation :	Chairman and Managing Director
Name :	Mr. S A Lalbhai
Designation :	Managing Director
Name :	Mr. G S Patel
Designation :	Independent Director
Date of Birth/ Age :	16.11.1923
Brief Resume :	Mr. G S Patel is a Director of the Company since August 10, 1983. Mr. Patel was the Chairman of Unit Trust of India. Previously he held directorships in 20 other companies in public and private sectors. Mr. Patel holds BSc (Economics) degree from London School of Economics, Bar-at-Law degree from Lincoln’s Inn and MA (Economics) and LLB degrees from the University of Mumbai.
Name :	Dr. S S Baijal
Designation :	Independent Director
Date of Birth/ Age :	06.09.1929
Brief Resume :	Dr. S S Baijal is a Director of the Company since June 13, 1984. Dr. Baijal was a Lecturer in Organic Chemistry, Lucknow University. He was a Whole-time Director and CEO of Atic Industries Limited, Managing Director of IEL Limited and Chairman and CEO of ICI companies in India. Dr. Baijal holds PhD degree in Chemistry from the University of Allahabad.
Directorship in other companies :	Public Companies: · BMG Enterprises Limited CAE Rossell India Limited DCM Shriram Credit and Investments Limited DCM Shriram Limited Rossell Tea Limited Private Companies: · Delhi Guest Houses Private Limited
Name :	Mr. B S Mehta
Designation :	Independent Director
Date of Birth/ Age :	19.09.1935
Brief Resume :	Mr. B S Mehta is a Director of the Company since April 16, 1992. Mr. Mehta is a Practicing Chartered Accountant and is a Chief Mentor of B S Mehta and Co. He is a past President of The Institute of Chartered Accountants of India. He was involved in educational activities at the graduate and post graduate levels in the University of Mumbai. Mr. Mehta holds B Com (Hons) degree from the University of Mumbai and is a Fellow Member of The Institute of Chartered Accountants of India.
Directorship in other companies :	Public Companies: · Bharat Bijlee Limited Ceat Limited Century Enka Limited Gillette India Limited Housing Development Finance Corporation Limited IL and FS Investment Managers Limited J B Chemicals and Pharmaceuticals Limited Jumbo World Holdings Limited (Body Incorporated outside India) NSDL e-Governance Infrastructure Limited Pidilite Industries Limited Proctor and Gamble Hygiene and Health Care Limited Sasken Communication Technologies Limited SBI Capital Markets Limited Sudarshan Chemical Industries Limited Private Companies: · Uhde India Private Limited
Name :	Mr. H S Shah
Designation :	Independent Director
Date of Birth/ Age :	01.10.1934
Brief Resume :	Mr. H S Shah is a Director of the Company since October 21, 1992. Mr. Shah held several senior and top positions in the Government of India and other academic | research, commercial and social organisations. Mr. Shah holds MA degree in Sociology from Gujarat University and has passed Indian Administrative Service examination conducted by Union Public Service Commission. Companies: Chairman, Gujarat Industrial Investment Corporation Chairman and Managing Director, Indian Petrochemicals Corporation Limited Vice Chairman, GE Capital (India) Limited Academic | Research: Chairman, Darshak Itihas Nidhi Chairman, Gujarat Ecology Society Chairman, Gujarat Industrial Research and Development Agency Chairman, National Institute of Design Founder Chairman, Gujarat Institute of Desert Ecology Member, Board of Governors of IIT, Mumbai President, Charutar Arogya Mandal (Medical College and Hospital) Social: Chairman, Gujarat Rural Institute for Socio Economic Reconstruction Vadodara Chairman, Kachnar Trust Founder President and Member, Heritage Trust Founder Trustee, Indian Trust for Rural Heritage and Development Life Trustee, BAIF Development Research Foundation Government: Chairman, Gujarat Ecology Commission Joint Director, Bureau of Public Enterprises, Government of India Joint Secretary to the Prime Minister, Government of India Member, Central Pollution Control Board Secretary, Posts and Telegraph Board of India Others: Chairman, Vikram A Sarabhai Community Science Centre Life Trustee and Member, Gujarat Nature Conservation Society Trustee, Shram Mandir
Directorship in other companies :	Public Companies: · Sun Pharmaceutical Industries Limited Supreme Petrochem Limited Private Companies: · Flexican Bellows Private Limited
Name :	Mr. S M Datta
Designation :	Independent Director
Date of Birth/ Age :	01.07.1936
Brief Resume :	Mr. S M Datta is a Director of the Company since October 28, 2002. Mr. Datta is the Chairman of Administrative Staff College of India. He is also associated with various other renowned institutes. Mr. Datta was the Chairman of Hindustan Unilever Limited as well as of all Unilever Group companies in India and Nepal from 1990 to 1996. Mr. Datta is a Chartered Engineer; Honorary Fellow - All India Management Association, Fellow - Indian Institute of Chemical Engineers, Member - Society of Chemical Industry (London) and Fellow - The Institution of Engineers (India). Mr. Datta holds a post graduate degree in Science and Technology from the University of Calcutta.
Directorship in other companies :	Public Companies: · Bhoruka Power Corporation Limited Castrol India Limited - Chairman Door Sabha Nigam Limited ILandFS Investment Managers Limited - Chairman Peerless Financial Products Distributors’ Limited - Chairman Peerless General Finance and Investment Company Limited Peerless Hotels Limited Philips Electronics India Limited - Chairman Rabo India Finance Limited Speciality Restaurants Limited - Chairman Transport Corporation of India Limited - Chairman Zodiac Clothing Company Limited Private Companies: · Chandras Chemical Enterprises Private Limited SMD Management Consultants Private Limited
Name :	Mr. V S Rangan
Designation :	Independent Director
Date of Birth/ Age :	13.02.1960
Brief Resume :	Mr. V S Rangan is a Director of the Company since July 19, 2010. Mr. Rangan is an Executive Director of Housing Development Finance Corporation Limited. Mr. Rangan is an Associate of The Institute of Chartered Accountants of India and The Institute of Cost and Works Accountants of India.
Directorship in other companies :	Public Companies: · Cholamandalam Investment and Finance Company Limited HDFC Developers Limited HDFC Holdings Limited HDFC Investments Limited HDFC Property Ventures Limited HDFC Trustee Company Limited HDFC Venture Capital Limited Hindustan Oil Exploration Company Limited Housing Development Finance Corporation Limited TVS Credit Services Limited Private Companies: · Credila Financial Services Private Limited HDFC Education and Development Services Private Limited IVF Advisors Private Limited Ruralshores Business Services Private Limited
Name :	Mr. R A Shah
Designation :	Independent Director
Name :	Mr. B N Mohanan
Designation :	Whole-time Director
Date of Birth/ Age :	26.05.1950
Brief Resume :	Mr. B N Mohanan is a Whole-time Director of the Company since January 01, 2009. He joined the Company in 1992. Mr. Mohanan has over 4 decades of professional experience in various capacities. Currently, he is the President, Infrastructure Unit and also the Occupier. His responsibilities include safety, health, environment, utilities and engineering procurement. Mr. Mohanan holds BSc (Engg Hon) degree from the University of Calicut.
Directorship in other companies :	Public Companies: · Aasthan Dates Limited - Chairman Atul Biospace Limited - Chairman and Managing Director Atul Clean Energy Limited - Chairman Atul Rajasthan Date Palms Limited - Managing Director Atul Seeds Limited Biyaban Agri Limited - Chairman Raja Dates Limited - Chairman DPD Limited
Name :	Mr. S Nammalvar
Designation :	Whole-time Director
Date of Birth/ Age :	27.05.1954
Brief Resume :	Mr. S Nammalvar joined the Company in 2011 as President, Technology Unit. His responsibilities include heading technology and manufacturing functions of the Company. Mr. Nammalvar has over 34 years of experience in various functions and has held leadership positions for over 20 years in companies belonging to Petrochemical, Pharmaceutical and Polymer industries in India and abroad. Mr. Nammalvar holds ME degree in Chemical Engineering from Annamalai University and Post Graduate Diploma in Business Management from the University of Pune.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	854316	2.88
Bodies Corporate	14161940	47.74
Sub Total	15016256	50.63
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	15016256	50.63
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1754272	5.91
Financial Institutions / Banks	44441	0.15
Central Government / State Government(s)	336	0.00
Insurance Companies	498767	1.68
Foreign Institutional Investors	1305661	4.40
Any Others (Specify)	509	0.00
Trusts	509	0.00
Sub Total	3603986	12.15
(2) Non-Institutions
Bodies Corporate	3102226	10.46
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4897298	16.51
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2885059	9.73
Any Others (Specify)	156908	0.53
Non Resident Indians	143579	0.48
Any Other	13329	0.04
Sub Total	11041491	37.22
Total Public shareholding (B)	14645477	49.37
Total (A)+(B)	29661733	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)	29661733	100.00

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

Sl. No.	Name of the Shareholders	Details of Shares held
		No. of Shares held	As a %
1	Aagam Holdings Private Limited	67,25,501	22.67
2	Aura Securities Private Limited	16,14,045	5.44
3	Aeon Investments Private Limited	10,39,383	3.50
4	Aeon Investments Private Limited	7,25,000	2.44
5	Arvind Limited	6,48,641	2.19
6	Aayojan Resources Private Limited	5,90,513	1.99
7	Shalva Investments Private Limited	5,00,000	1.69
8	Akshita Holdings Private Limited	4,52,186	1.52
9	Adhinami Investments Private Limited	4,44,200	1.50
10	Arvind Brands Limited	4,30,000	1.45
11	Adhigam Investments Private Limited	4,29,500	1.45
12	Agrimore Limited	2,26,146	0.76
13	Samvegbhai Arvindbhai Lalbhai	2,02,377	0.68
14	Ashini Investments Private Limited	2,00,000	0.67
15	Asman Investments Private Limited	1,25,000	0.42
16	Hansaben Niranjanbhai Lalbhai	91,375	0.31
17	Saumya Samvegbhai Lalbhai	82,695	0.28
18	Samvegbhai Arvindbhai	62,450	0.21
19	Swati S Lalbhai	59,593	0.20
20	Arvindbhai Narottambhai Sheth	52,493	0.18
21	Taral S Lalbhai	50,022	0.17
22	Anamikaben Samveghbhai Lalbhai	47,199	0.16
23	Sunil Siddharth Lalbhai	43,193	0.15
24	Sunil Siddharth	31,544	0.11
25	Shrenikbhai Kasturbhai Lalbhai	31,210	0.11
26	Vimla S Lalbhai	28,318	0.10
27	Vimlaben S Lalbhai	21,661	0.07
28	Astha Lalbhai	16,800	0.06
29	Anshuman Holdings Private Limited	11,825	0.04
30	Shrenikbhai Kasturbhai Lalbhai	8,641	0.03
31	Vimla Siddharthbhai	8,612	0.03
32	Hansa Niranjanbhai	5,437	0.02
33	Samvegbhai Arvindbhai Lalbhai	3,653	0.01
34	Shrenikbhai Kasturbhai Lalbhai	2,000	0.01
35	Shrenikbhai Kasturbhai Lalbhai	1,349	0.00
36	Shrenikbhai Kasturbhai Lalbhai	1,169	0.00
37	Hansaben Niranjanbhai	562	0.00
38	Sanjaybhai Shrenikbhai Lalbhai	500	0.00
39	Sheth Narottambhai Lalbhai	495	0.00
40	Shrenikbhai Kasturbhai Lalbhai	412	0.00
41	Sanjaybhai Shrenikbhai Lalbhai	100	0.00
42	Lalbhai Shrenikbhai Kasturbhai	100	0.00
43	Jayshreeben Sanjaybhai Lalbhai	100	0.00
44	Punit Sanjaybhai	100	0.00
45	Kulin Sanjaybhai	100	0.00
46	Shrenik Kasturbhai Lalbhai	56	0.00
	Total	1,50,16,256	50.63

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

Sl. No.	Name of the Shareholders	No. of Shares held	Shares as %
1	Saif Advisors Mauritius Limited a/c Saif India IV FII Holdings Limited	806493	2.72
2	The New India Assurance Company Limited	498347	1.68
3	Reliance Capital Trustee Co. Limited -A/C Reliance Long Term Equity	485447	1.64
4	Finquest Financial Solutions Private Limited	428018	1.44
5	Bharat Jayantilal Patel	412400	1.39
6	Reliance Capital Trustee Co Limited -Reliancesmall Cap Fund	396312	1.34
7	Ajax Investments	300000	1.01
	Total	3327017	11.22

BUSINESS DETAILS

Line of Business :

Manufacturer of Dyestuff Chemicals, Drugs and Pharmaceuticals.

Products :

Item Code No.	Product Description
3204	Synthetic Organic Colouring Matter
291200	Para Anisic Aldehyde
390730.09	Epoxy Resins

GENERAL INFORMATION

No. of Employees :

2761 (Approximately)

Bankers :

· Axis Bank

· Bank of Baroda

· Bank of India

· Export Import Bank of India

· State Bank of India

Facilities :

SECURED LOAN	31.03.2014 Rs. In Millions	31.03.2013 Rs. in Millions
LONG-TERM BORROWINGS
Term loans
Rupee term loans from financial institutions	312.500	416.600
Foreign currency term loans from banks	594.700	696.900
Foreign currency term loans from financial institutions	225.400	430.600
SHORT-TERM BORROWINGS
Working capital loans repayable on demand from banks	1292.700	1510.900
Total	2425.300	3055.000

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Cost Auditors
Name :	R. Nanabhoy and Company Cost Accountants
Subsidiary Companies :	· Aasthan Dates Limited · Subsidiary companies · Ameer Trading Corporation Limited · Atul Bioscience Limited · Atul Biospace Limited · Atul Brasil Quimicos Ltda · Atul China Limited · Atul Deutschland GmbH · Atul Europe Limited · Atul Infotech Private Limited · Atul Rajasthan Date Palms Limited · Atul USA Inc · Biyaban Agri Limited · DPD Limited · Raja Dates Limited
Joint Venture Company :	· Rudolf Atul Chemicals Limited
Associate Companies :	· Amal Limited · Anchor Adhesives Private Limited · Atul Crop Care Limited · LAPOX Polymers Limited · M. Dohmen S.A. · Atul Elkay Polymers Limited
Organisations over which significant influence exercised :	· Welfare funds Atul Club Atul Kelavani Mandal Atul Rural Development Fund Atul Vidyalaya

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs. 10/- each	Rs.800.000 Millions
8000000	Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs.800.000 Millions
	Total		Rs. 1600.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
29691780	Equity Shares	Rs. 10/- each	Rs. 296.900 Millions

Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
29661733	Equity Shares	Rs. 10/- each	Rs. 296.600 Millions
29991	Add: Forfeited Shares (amount paid up)		Rs. 0.200 Million
	Total		Rs. 296.800 Millions

a) Rights, Preferences and restrictions

The Company has two classes of Shares referred to as Equity Shares having a par value of Rs.10 and Cumulative Redeemable Preference Shares having a par value of Rs.100.

i) Equity Shares:

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts and Preference Shares.

The distribution will be in proportion to the number of Equity Shares held by the Shareholders. Each holder of Equity Shares is entitled to one vote per share.

ii) Preference Shares:

The Company has Preference Shares having a par value of Rs.100 per share. Each Shareholder is eligible for dividend depending upon their coupon rates. The Preference Shareholder is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the Preference Shares.

iii) Dividend:

The Company declares and pays dividend 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.

b) Shares reserved for issue at a later date

56 Equity Shares are held in abeyance due to disputes at the time of earlier rights issues.

c) Details of Shareholders holding more than 5% of Equity Shares:

Name of the Shareholders	As at March 31, 2014
	Holding %	No of shares
Aeon Investments Private Limited*	22.70	6725501
Aura Securities Private Limited	5.44	1614045
Aeon Investments Private Limited	3.50	1039383

* During the year certain Promoter group companies were merged. However, there is no change in shareholding of the Promoters due to this merger.

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	296.800	296.800	296.800
(b) Reserves & Surplus	9119.100	7264.100	6122.500
(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)	9415.900	7560.900	6419.300
(3) Non-Current Liabilities
(a) long-term borrowings	1133.600	1544.300	1449.000
(b) Deferred tax liabilities (Net)	353.900	271.600	223.100
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	51.900	50.400	33.300
Total Non-current Liabilities (3)	1539.400	1866.300	1705.400
(4) Current Liabilities
(a) Short term borrowings	1842.700	1604.500	1935.700
(b) Trade payables	3168.700	2753.200	2778.400
(c) Other current liabilities	1337.300	1129.600	1049.700
(d) Short-term provisions	432.100	360.400	511.400
Total Current Liabilities (4)	6780.800	5847.700	6275.200
TOTAL	17736.100	15274.900	14399.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5196.000	4804.500	4175.500
(ii) Intangible Assets	0.000	0.000	2.200
(iii) Capital work-in-progress	529.800	459.300	559.400
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1364.700	1285.600	1250.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	290.600	315.800	281.100
(e) Other Non-current assets	643.100	436.300	347.400
Total Non-Current Assets	8024.200	7301.500	6615.600
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3757.500	3075.300	2945.700
(c) Trade receivables	4472.600	3616.000	3682.200
(d) Cash and cash equivalents	88.000	78.400	115.200
(e) Short-term loans and advances	1025.400	1034.600	869.400
(f) Other current assets	368.400	169.100	171.800
Total Current Assets	9711.900	7973.400	7784.300
TOTAL	17736.100	15274.900	14399.900

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations (net)		23654.500	20014.800	17776.800
		Other Income		396.200	204.600	143.800
		TOTAL (A)		24050.700	20219.400	17920.600
Less	EXPENSES
		Cost of Materials Consumed		13246.000	11270.500	10551.300
		Purchases of Stock-in-Trade		236.900	163.600	200.100
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade		(664.700)	(0.600)	(153.300)
		Employees benefits expense		1397.900	1276.000	1172.000
		Other expenses		6007.100	4832.700	4002.600
		Exceptional Items		0.000	(53.800)	(65.100)
		Exchange rate difference [net]		0.000	0.000	120.700
		TOTAL (B)		20223.200	17488.400	15828.300
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			3827.500	2731.000	2092.300
Less	FINANCIAL EXPENSES (D)			314.300	316.200	431.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			3513.200	2414.800	1661.300
Less	DEPRECIATION/ AMORTISATION (F)			542.300	490.600	436.500
	PROFIT BEFORE TAX (E-F) (G)			2970.900	1924.200	1224.800
Less	TAX (H)			843.000	569.000	343.700
	PROFIT AFTER TAX (G-H) (I)			2127.900	1355.200	881.100
	EARNINGS IN FOREIGN CURRENCY
			FOB Value of Exports	10452.600	9290.100	7775.500
	IMPORTS
			Raw Materials	3871.600	3139.100	3095.400
			Trading finished goods	284.600	109.800	110.300
			Capital Goods	76.800	44.500	54.700
	TOTAL IMPORTS			4233.000	3293.400	3260.400
	Earnings Per Share (Rs.)			71.74	45.69	29.70

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	8.85	6.70	4.92
Net Profit Margin (PBT/Sales)	(%)	12.56	9.61	6.89
Return on Total Assets (PBT/Total Assets}	(%)	18.75	14.22	9.73
Return on Investment (ROI) (PBT/Networth)		0.32	0.25	0.19
Debt Equity Ratio (Total Debt /Networth)		0.32	0.42	0.53
Current Ratio (Current Asset/Current Liability)		1.43	1.36	1.24

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	296.800	296.800	296.800
Reserves & Surplus	6122.500	7264.100	9119.100
Net worth	6419.300	7560.900	9415.900
Long-term borrowings	1449.000	1544.300	1133.600
Short term borrowings	1935.700	1604.500	1842.700
Total borrowings	3384.700	3148.800	2976.300
Debt/Equity ratio	0.527	0.416	0.316

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	17776.800	20014.800	23654.500
		12.589	18.185

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	17776.800	20014.800	23654.500
Profit	881.100	1355.200	2127.900
	4.96%	6.77%	9.00%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Secured Rupee term loans from banks	0.000	0.000	162.300
Rupee term loan from a foreign financial institution	104.200	104.200	131.300
Foreign currency term loans from banks	175.300	68.000	48.000
Foreign currency term loan from a foreign financial institution	250.400	226.600	21.400
Unsecured Rupee term loans from a bank	1.600	3.400	0.200
Public deposits from related parties	0.000	0.000	8.300
Public deposits from others	0.000	0.000	66.600
Total	531.500	402.200	438.100

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

UNSECURED LOANS

PARTICULARS	31.03.2014 Rs. In Millions	31.03.2013 Rs. in Millions
LONG TERM BORROWINGS
Rupee Term Loans from Banks	1.000	0.200
SHORT TERM BORROWINGS
Loans from Banks Including Foreign Banks	550.000	0.000
Buyer’s credit arrangement	0.000	93.600
Total	551.000	93.800

PERFORMANCE

Sales increased by 17% from Rs.1,9640.000 Millions to Rs.2,3070.000 Millions aided by both higher volumes (8%) and prices (9%). Sales in India increased by 22% from Rs. 9860.000 Millions to Rs.11990.000 Millions. Sales outside of India increased by 13% from Rs.9780.000 Millions to Rs.11080.000 Millions. Revenue from operations increased by 18% from Rs.20010.000 Millions to Rs.23650.000 Millions. PBT for the year includes about Rs.200.000 Millions of one-time special dividend income received; including such special income, the earnings per share increased from Rs.456.900 to Rs.717.400 Millions. While the operating profit before working capital changes increased by 38% from Rs.2600.000 Millions to Rs.3600.000 Millions, the net cash flow from operating activities declined by 16% from Rs.1670.000 Millions to Rs.1410.000 Millions mainly on account of the growth in working capital consequent to the higher level of sales achieved.

Both the Segments of the Company, namely, Life Science Chemicals Segment (LSC) and Performance and Other Chemicals Segment (POC) showed improvement in performance. The sales of LSC increased by 6% from Rs.6990.000 Millions to Rs.7380.000 Millions, aided by higher sales of Crop Protection and Pharmaceuticals and Intermediates and its EBIT increased by 8% from Rs.1390.000 Millions to Rs.1500.000 Millions. The sales of POC increased by 24% from to Rs.12650.000 Millions Rs.15690.000 Millions, supported by growth in Colors and Polymers and its EBIT increased from Rs.900.000 Millions to Rs.1730.000 Millions.

The Company reduced its borrowings (including current maturities on long-term borrowings) by 1% from Rs.3550.000 Millions to Rs.3510.000 Millions despite the growth in working capital to support higher sales and payments towards capital expenditure of about Rs.1000.000 Millions.

The Company improved its credit rating from ‘AA-‘ (double A minus) to ‘AA’ (double A) for its long-term borrowings, awarded by CARE. Its rating for short-term borrowings and commercial paper remained at A1+, the highest possible, awarded by CARE.

The Company is in the process of implementing 33 projects with a total outlay of about Rs.4800.000 Millions; these projects are expected to be commissioned in during 2014-15 and 2015-16. It completed 14 projects related to environment protection during 2013-14 and is expected to complete 8 more projects by way of reduction in and treatment of pollutants.

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS-WISE PERFORMANCE

CROP PROTECTION

Crop Protection Business mainly comprises Fungicides, Herbicides and Insecticides. The products are used by customers belonging to Agriculture industry for the protection of crops. The Business comprises about 15 products and 46 formulations.

During 2013-14, sales increased by 12% from Rs. 3850.000 Millions to Rs. 4330.000 Millions. Sales in India increased by 40% from Rs. 1410.000 Millions to Rs. 1970.000 Millions; bulk sales in India increased by 38% from Rs. 680.000 Millions to Rs. 940.000 Millions whereas brand sales which are currently only in India increased by 41% from Rs. 730.000 Millions to Rs. 1030.000 Millions. Sales outside of India decreased by 3% from Rs. 2440.000 Millions to Rs. 2360.000 Millions and formed 55% of the total. Growth on account of volume was 10%. Sales from new products and formulations were Rs. 70.000 Millions. The Company completed 2 projects and undertook 3 projects for implementation.

World market for crop protection chemicals is estimated at US$ 54 bn and is growing at about 3%. Indian market for such chemicals is estimated at US$ 1.5 bn and is growing at about 7%. There are about 60 major companies which dominate the world marketplace, and there are about 13 companies in India having sales of more than US$ 100 mn.

The main user industry, namely, Agriculture, is growing well because of increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) building a strong sales and marketing organisation and broadening and deepening its presence in other countries, particularly in Africa and South America, ii) promoting its brands, iii) increasing its manufacturing and working capital efficiencies, iv) generating and adding capacities and v) introducing new products and formulations.

Floods or famines will adversely affect the demand. Registration costs are high in certain countries. Fluctuations in foreign exchange may impact sales realisations. Given that some of these chemicals can be toxic, it is essential to take utmost care in their manufacture and use.

PHARMACEUTICALS

Pharmaceuticals and Intermediates Business mainly comprises API intermediates and a few APIs. The products are used by customers belonging to Pharmaceutical industry, under five broad therapeutic categories, namely, anti-depressant, antidiabetic, anti-infective, anti-retroviral and cardiovascular. The Business comprises about 38 products.

During 2013-14, sales decreased by 3% from Rs. 3140.000 Millions to Rs. 3060.000 Millions. Sales in India increased by 1% from Rs. 1710.000 Millions to Rs. 1720.000 Millions. Sales outside of India decreased by 6% Rs. 1430.000 Millions to Rs. 1340.000 Millions and formed 44% of the total. Degrowth on account of volume was 7%. Sales from new products were Rs. 70.000 Millions. The Company completed 8 projects and undertook 3 projects for implementation. Atul Bioscience Limited, a 100% subsidiary company, focussed on production of advanced API intermediates, sales of which increased by 30% from Rs. 270.000 Millions to Rs. 350.000 Millions, primarily because of volume; and it completed capacity expansion in both of its plants.

World market for pharmaceuticals is estimated at US$ 820 bn (comprising US$ 700 bn prescription drugs and US$ 120 bn generic drugs) and is growing at about 5%. Indian pharmaceuticals market is estimated at US$ 22 bn (including sales out of India) and is growing at about 10%. There are about 20 major companies which dominate the world marketplace in prescription drugs space with share of about 65% and about 8 companies in generic drugs space with share of about 70%.

The main user industry, namely, Pharmaceutical, is growing well because of increasing awareness about diseases and health. The Company along with Atul Bioscience will participate in this growth by i) widening its market reach, ii) increasing its manufacturing efficiencies, iii) generating and adding capacities and iv) introducing new products. It will also form long-term alliances with other companies.

Prices of many products come down significantly in a short time. Fluctuations in foreign exchange may impact sales realisations.

AROMATICS

Aromatics Business mainly comprises p-Cresol and its downstream products. The products are mainly used by customers belonging to Flavour and Fragrance and Personal Care industries. The Business comprises about 29 products.

During 2013-14, sales increased by 6% from Rs. 3880.000 Millions to Rs. 4100.000 Millions. Sales in India decreased by 10% from Rs. 1130.000 Millions to Rs. 1020.000 Millions. Sales outside of India increased by 12% from Rs. 2750.000 Millions to Rs. 3080.000 Millions and formed 75% of the total. Growth on account of volume was 3%. Sales from new products were Rs. 60.000 Millions. The Company completed 6 projects and undertook 4 projects for implementation. World market of p-Cresol is estimated at 55,000 mt and is growing at about 3%. Though earlier the product used to be manufactured in the UK and the USA, China and India are now the major suppliers of the product. World market of flavour and fragrance chemicals is estimated at US$ 23 bn and is growing at about 5%.

The main user industries, namely, Flavour and Fragrance and Personal Care, are growing well because of increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) broadening its market reach, ii) increasing its manufacturing efficiencies, iii) adding capacities and iv) introducing new products.

The prices of key raw materials which are derived from crude oil fluctuate almost monthly whereas the customers in the user industries expect the prices of the finished products to remain firm for a quarter or even more; on such occasions, it is possible to get affected adversely. Fluctuations in foreign exchange may impact sales realisations.

BULK CHEMICALS AND INTERMEDIATES

Bulk Chemicals and Intermediates Business mainly comprises Sodium Hydroxide, Chlorine, Sulphuric Acid, Oleum, Sulphur Trioxide, Chlorosulphonic Acid and Resorcinol. Barring Chlorosulphonic Acid and Resorcinol, the rest of the products are used for captive consumption. Resorcinol is mainly used by customers belonging to Tyre industry. The Business comprises about 26 products.

During 2013-14, (external) sales increased by 29% from Rs. 770.000 Millions to Rs. 990.000 Millions. Sales in India increased by 37% from Rs. 600.000 Millions to Rs. 820.000 Millions. Sales outside of India remained constant at Rs. 170.000 Millions and formed 17% of the total. Growth on account of volume was 16%. Sales from new products were Rs. 190.000 Millions. The Company completed 1 project and undertook 2 projects for implementation.

World market for bulk chemicals is growing at about 0.5% and Indian market is growing at about 2%. World market for Resorcinol is estimated at US$ 300 mn and is growing at about 3%; Indian market for the product is estimated at US$ 15 mn and is growing at about 5%.

The captive consumption of bulk chemicals is expected to grow as the Company expands manufacturing capacities of its various products. Tyre industry is expected to grow further because of increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) widening its market reach, ii) increasing its manufacturing efficiencies, iii) modernising its bulk chemicals plant, iv) adding capacities and v) introducing new and downstream products.

The demand and prices of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange may impact sales realisations.

COLORS

Colors Business mainly comprises dyes for natural fibres such as Vat, Sulphur Black and Reactive and in a small way high performance pigments. The products are used by customers belonging to Textile and Paint and Coatings industries. The Business comprises about 550 products. Rudolf Atul Chemicals Limited, a JV company formed in 2011-12, provides a complete range of textile chemicals in Indian market.

During 2013-14, sales increased by 29% from Rs. 3300.000 Millions to Rs. 4260.000 Millions. Sales in India increased by 24% from Rs. 1870.000 Millions to Rs. 2310.000 Millions. Sales outside of India increased by 36% from Rs. 1430.000 Millions to Rs. 1950.000 Millions and formed 46% of the total. Increase on account of volume was 6%. Sales from new products were Rs. 300.000 Millions. The Company completed 5 projects and undertook 4 projects for implementation. It sold off its shareholding in M. Dohmen S.A., a JV company; the transaction was however completed on April 03, 2014. Rudolf Atul Chemicals increased sales by 51% from Rs. 210.000 Millions to Rs. 310.000 Millions, mainly because of volume growth.

World market for dyes and textile chemicals is estimated at US$ 12 bn and is growing at about 2% and Indian market is estimated at US$ 800 mn and is growing at about 3%. China is the largest manufacturer of dyes followed by India. World market for high performance pigments is estimated at US$ 3.5 bn and is growing at about 4%.

The main user industry, namely, Textile, is showing signs of recovery in India and abroad. Automobile industry is growing well. The Company along with Rudolf Atul Chemicals will participate in this growth by i) broadening its market reach, ii) increasing its manufacturing and working capital efficiencies and iii) introducing new dyes, pigments and textile chemicals.

Fluctuations in foreign exchange may impact sales realisations. Treatment costs are expected to remain high given that the manufacture of dyes generates significant pollutants.

POLYMERS

Polymers Business mainly comprises Epoxy Resins and Hardeners and formulations thereof, other components such as air release agents, reactive diluents, rheological modifiers, wetting agents, etc and Sulphones. These products are used by Automobile, Construction, Defence, Electrical and Electronics, Footwear, Handicraft, Marine, Paint and Coatings, Paper and Wind Energy industries. The Business comprises about 64 products and 275 formulations.

During 2013-14, sales increased by 35% from Rs. 4680.000 Millions to Rs. 6330.000 Millions. Sales in India increased by 33% from Rs. 3120.000 Millions to Rs. 4150.000 Millions. Brand sales which is currently only in India increased by 18% from Rs. 720.000 Millions from to Rs. 850.000 Millions. Sales outside of India increased by 40% from Rs. 1560.000 Millions to Rs. 2180.000 Millions and formed 34% of the total. Increase on account of volume was 24%. Sales from new products were Rs. 120.000 Millions. The Company completed 4 projects and undertook 5 projects for implementation. Though already incorporated, Atul Elkay Polymers Limited, a JV company, is still assessing the demand potential for stone care chemicals in India.

World market for Epoxy Resins and Hardeners is estimated at US$ 6.2 bn and is growing at about 2% and Indian market is estimated at US$ 225 mn and is growing at about 5%. There are about 7 major companies which dominate the world marketplace. The two key raw materials, namely Bisphenol-A and Epichlorohydrin, are imported into India. World market for Sulphones is estimated at US$ 300 mn and is growing at about 4%.

The user industries, Construction, Defence, Electrical and Electronics and Paint and Coatings, are growing well, particularly in India. The Company will participate in this growth by i) widening its market reach, ii) increasing its manufacturing and working capital efficiencies, iii) generating and adding new capacities of Epoxy Resins and Hardeners and iv) introducing new products and formulations.

Cheaper imports of Epoxy Resins and Hardeners will keep the contribution margins under pressure. Since the two main raw materials are imported, fluctuations in foreign exchange may impact margins.

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2014

(RS. IN MILLIONS)

PARTICULARS	Quarter Ended 30.06.2014
	(Unaudited)
Income from Operations
Net Sales/Income from Operations	6361.900
Other Operating Income	108.900
Total Income from operations (net)	6470.800
Expenses
(a) Cost of material consumed	3541.000
(b) Purchase of stock in trade	78.300
(c) Changes in inventories of finished goods, work in progress and stock in trade	(59.800)
(d) Power, fuel and water	723.600
(e) Employee benefit expenses	400.700
(f) Depreciation and amortization expenses	135.600
(g) Other Expenses	748.700
Total Expenses	5568.100
Profit from Operations before Other Income, Finance costs	902.700
Other Income	15.200
Profit/ Loss from Ordinary Activities before Finance costs	917.900
Finance costs	61.700
Profit/ Loss from Ordinary Activities before tax	856.200
Tax Expenses
- Current Tax	248.700
- Deferred Tax	9.700
Net Profit/ Loss from Ordinary Activities after tax	597.800
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	296.600
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	--
Earnings Per Share
Basic and Diluted	20.15
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	14645477
Percentage of Shareholding	49.37%
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	--
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--
- Percentage of Shares (as a % of the Total Share Capital of the Company)	--
Non - encumbered
- Number of Shares	15016256
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00%
- Percentage of Shares (as a % of the total share capital of the company)	50.63%

	PARTICULARS	Quarter Ended 30.06.2014
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Remaining unresolved at the end of the quarter	Nil

NOTES:

1) The above results have been reviewed and recommended for adoption by the Audit Committee in its meeting held on July 22, 2014 and approved by the Board of Directors at its meeting held on July 23, 2014. The report of the Statutory Auditors contains no qualification.

2) Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing on or after April 1, 2014, the Company has re-worked depreciation with reference to the useful lives of fixed assets prescribed by PART 'C of Schedule II to the Act or the useful lives of assets as estimated by the Company, whichever is lower. Where the remaining useful life of an asset is nil, the carrying amount of the asset after retaining the residual value, as at April 1, 2014 has been adjusted to the General Reserve. In other cases the carrying values have been depreciated over the remaining useful lives of the assets and recognised in the Statement of Profit and Loss. As a result the charge for depreciation is higher by Rs. 6.200 Millions for the quarter ended June 30, 2014.

3) Figures of the earlier periods have been regrouped / recast / reclassified wherever necessary including in the Segment revenue, results and capital employed.

4) The unaudited Segment revenue, results and capital employed are annexed.

SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED

(RS. IN MILLIONS)

PARTICULARS	Quarter ended 30.06.2014
	Unaudited
1. Segment Revenue
a. Life Science Chemicals	1772.900
b. Performance and Other Chemicals	4969.000
Total	6741.900
Less: Inter – segment revenue	380.000
Total income from operations (net)	6361.900
2. Segment Results
Profit/ (loss) before tax and interest
a. Life Science Chemicals	371.800
b. Performance and Other Chemicals	605.200
Total	977.000
Less: Finance Costs	61.700
Other un-allocable expenditure net off un-allocable other operating income	59.100
Total Profit Before Tax	856.200
3. Capital Employed
(Segment Assets – Segment Liabilities)
a. Life Science Chemicals	2894.400
b. Performance and Other Chemicals	6947.000
c. Unallocated	2619.800
Total	12461.200

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Claims against the Company not acknowledged as debts in respects of:
(a) Excise	72.100	58.400
(b) Income tax	281.000	350.300
(c) Sales tax	6.700	0.000
(d) Customs	27.800	27.800
(e) Water charges	770.300	719.200
(f) Others	146.400	135.400
Total	1304.300	1291.100
NOTE: Future cash outflows in respect of (a) to (f) above are determinable on receipt of judgements | decisions pending with various forums | authorities

FIXED ASSETS:

· Land – Freehold

· Buildings

· Roads

· Plant and Equipment

· Railway Siding

· Office Equipment and Furniture

· Vehicles

· Computer software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.75
UK Pound	1	Rs. 100.07
Euro	1	Rs. 77.95

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
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	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.