MIRA INFORM REPORT

Report No. :	320429
Report Date :	30.04.2015

IDENTIFICATION DETAILS

Name :	LINDE INDIA LIMITED (w.e.f. 18.02.2013)
Formerly Known As :	BOC INDIA LIMITED
Registered Office :	Oxygen House, P-43, Taratala Road, Kolkata – 700088, West Bengal
Tel. No.:	91-33-66021600
Country :	India
Financials (as on) :	31.12.2014
Date of Incorporation :	24.01.1935
Com. Reg. No.:	21-008184
Capital Investment / Paid-up Capital :	Rs.852.840 Million
CIN No.: [Company Identification No.]	L40200WB1935PLC008184
IEC No.:	0288000889
TAN No.: [Tax Deduction & Collection Account No.]	CALB05091C / CALB05706B
PAN No.: [Permanent Account No.]	AAACB2528H
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is primarily engaged in manufacture of industrial and medical gases and Construction of cryogenic and non-cryogenic air separation plants.
No. of Employees :	832 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “THE BOC GROUP LIMITED”, UNITED KINGDOM. It is a one of the largest players in the domestic industrial gases having fine track record. For the financial year ended 2014, the company has reported topline growth of 5% (approx.) but profit of the company has declined which led to lower profitability margin at 0.33%. However, the rating reflect Linde India’s established market position in the industrial gases segment marked by healthy financial risk profile and extensive industry experience of its promoters in a segment. Further rating also reflects financial and managerial support the company receives from its parent company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. In view of established market position backed by strong holding company support, 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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating=AA
Rating Explanation	High degree of safety and very low credit risk.
Date	04.07.2015

Rating Agency Name	CRISIL
Rating	Short term rating=A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	04.07.2015

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 PARTED BY

Name :	Mr. Sujoy Nag Chowdhury
Designation :	Manager – Business Development
Contact No.:	91-33-66158392
Date :	29.04.2015

LOCATIONS

Registered / Corporate Office :	Oxygen House, P-43, Taratala Road, Kolkata – 700 088, West Bengal, India
Tel. No.:	91-33-66021600 / 66158392
Fax No.:	91-33-24014206
E-Mail :	contact.lg.in@linde.com pawan.marda@linde.com pankaj.sharma@linde.com hrd@linde.com
Website :	www.linde.in
Location :	Leased
Factory :	· Ahmedabad Rakhial Road, Ahmedabad – 380023, Gujarat, India · Asansol G T Road (West) Gopalpur, Asansol – 713304, District Burdwan, West Bengal, India · Bangalore Plot No. 1 and 2 (Part) , Survey Nos. 59/1 and 60 Sompura Industrial Area Dobaspet, 1st Stage, Bangalore – 562111, Karnataka, India · Bellary Tonnage Plant (1800 TPD) Torunagallu, Sandur Taluk District Bellary – 583123, Karnataka, India · Bhiwadi Plot No. B-821, RIICO Industrial Area Bhiwadi – 301019, District Alwar, Rajasthan, India · Chennai Plot No. G-21, SIPCOT Industrial Park Irungattukottai, District Kancheepuram – 602105, Tamilnadu, India · Howrah Village: Pakuria, P.O. Lakhenpur P.S. Domjur, Howrah – 711114, West Bengal, India · Hyderabad Tonnage Plant (65 tpd) and Packaged Gases and Products Plant Plot No. 178 and 179 IDA Pashamylaram, Phase III, District Medak – 502307, Hyderabad, India · Jamshedpur Tonnage Plant (2550 tpd) Tonnage Plant (1290 tpd) Industrial Gases Plants (500 tpd, 275 tpd x 2) Long Tom Area, (Behind NML) Burma Mines, Jamshedpur – 831007, Jharkhand, India Tonnage Plant (225 tpd) Near “L” Town Gate Opposite Bari Maidan Sakchi, Jamshedpur Mona Road, Burma Mines Jamshedpur – 831007, Jharkhand, India · Jajpur Tonnage Plant (418 tpd) Jindal Stainless Limited. Kalinganagar Industrial Complex, Duburi, District Jajpur – 755026, Orissa, India · Kolkata Plant Manufacturing Works P-41 Taratala Road Kolkata – 700088, West Bengal, India 48/1 Diamond Harbour Road Kolkata – 700002, West Bengal, India · Taloja Tonnage Plant T-8 MIDC Industrial Area Taloja, Navi Mumbai – 410208, District Raigad, India Taloja PGP Plant T-25, MIDC Industrial Area Taloja, Navi Mumbai – 410208, District Raigad, India · Pune B 16/2, MIDC Industrial Area Chakan, Village – Mahalunge, Tal – Khed, District Pune 410 501 Selaqui Tonnage Plant (221 tpd) Khasara No. 122, MI Behind Pharma City Selaqui, Dehradun – 248197, Uttarakhand, India · Trichy Plot no. 30, 31 and 32 SIDCO Industrial Estate, Mathur District Pudukkottai – 622515, India · Visakhapatnam Plot No. 62, J N Pharma City Thanam Village, Parwada Mandal Visakhapatnam – 531021, Andhra Pradesh,  India

DIRECTORS

AS ON 31.12.2014

Name :	Mr. Sanjiv Lamba
Designation :	Chairman
Date of Birth/Age :	51 years
Qualification:	CA, B. Com.
Date of Appointment:	15.11.1989
Name :	Mr. Moloy Banerjee
Designation :	Director
Date of Birth/Age :	49 years
Qualification:	B Tech (Mechanical)
Experience :	28 Years
Name :	Mr. Arun Balakrishnan
Designation :	Non-Executive Director
Date of Birth/Age :	65 Years
Qualification:	BE (Chemical), PGDM
Date of Appointment:	01.04.2007
Name :	Mr. Jyotin Mehta
Designation :	Non-Executive Director
Date of Birth/Age :	55 Years
Qualification:	B.com , FCA, FCS and FICWA
Experience :	30 Years
Name :	Mr. Aditya Narayan
Designation :	Non-Executive Director
Date of Birth/Age :	63 Years
Qualification:	B. Tech, LLB, MS
Date of Appointment:	1996
Name :	Mr. Binod Patwari
Designation :	Non-Executive Director
Date of Birth/Age :	44 Years
Qualification:	B.com, CFA, CS, MBA (Finance)
Date of Appointment:	1997

KEY EXECUTIVES

Name :	Mr. Pawan Marda
Designation :	Assistant Vice President and Company Secretary
Name :	Mr. Milan Sadhukhan
Designation :	Chief Financial Officer
Name :	Mr. Sujoy Nag Chowdhury
Designation :	Manager – Business Development
Audit Committee :	Ø Jyotin Mehta, Chairman Ø Arun Balakrishnan Ø Sanjiv Lamba Ø Aditya Narayan
Stakeholders Relationship Committee :	Ø Aditya Narayan, Chairman Ø Jyotin Mehta Ø Moloy Banerjee
Nomination and Remuneration Committee :	Ø Arun Balakrishnan, Chairman Ø Sanjiv Lamba Ø Jyotin Mehta
Corporate Social Responsibility Committee :	Ø Arun Balakrishnan, Chairman Ø Binod Patwari Ø Moloy Banerjee

SHAREHOLDING PATTERN

AS ON 31.12.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	63963167	75.00
Sub Total	63963167	75.00
Total shareholding of Promoter and Promoter Group (A)	63963167	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6412017	7.52
Financial Institutions / Banks	14942	0.02
Central Government / State Government(s)	29	0.00
Insurance Companies	765692	0.90
Foreign Institutional Investors	7084329	8.31
Sub Total	14277009	16.74
(2) Non-Institutions
Bodies Corporate	834105	0.98
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	4355539	5.11
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1694586	1.99
Any Others (Specify)	159817	0.19
Trusts	8690	0.01
Clearing Members	44920	0.05
Directors & their Relatives & Friends	600	0.00
Non-Resident Indians	105607	0.12
Sub Total	7044047	8.26
Total Public shareholding (B)	21321056	25.00
Total (A)+(B)	85284223	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)	85284223	0.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in manufacture of industrial and medical gases and

Construction of cryogenic and non-cryogenic air separation plants.

Products :

Product Description	Item Code No. (ITC Code)
Oxygen	28044000
Nitrogen	28043000
Argon	28042100

· Gaseous / Liquid / Compressed Oxygen

· Gaseous / Liquid / Compressed Nitrogen

· Gaseous / Liquid / Compressed Argon

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products :

Liquid Oxygen, Liquid Argon

Project Engineering Division

Countries :

· Bangladesh

· Indonesia

· Srilanka

Imports :

Products :

Helium

Countries :

USA

Qatar

Terms :

Selling :

Cash, Credit (30 Days)

Purchasing :

Cash, Credit (30 Days)

PRODUCTION DETAILS (AS ON 31.12.2014)

Particulars	Installed Capacity
Liquid Oxygen	1366 tpd
Liquid Nitrogen	480 tpd
Liquid Argon	324 tpd
Gaseous Oxygen	8725 tpd
Gaseous Nitrogen	5217 tpd
Gaseous Argon	53 tpd

GENERAL INFORMATION

Suppliers :

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

Customers :

Others

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

No. of Employees :

832 (Approximately)

Bankers :

· Citibank N.A.

· HSBC Bank

· ICICI Bank Ltd.

· Punjab National Bank

· Standard Chartered Bank

· State Bank of India

· United Bank of India

Auditors :

Name :

BSR and Company

Chartered Accountants

Address :

Building No. 10, 8^th Floor, Tower-B DLF Cyber City, Phase-II Gurgaon – 122002, Haryana, India

Tel No.:

91-124-2549191

Fax No.:

91-124-2549101

Solicitors :

Khaitan and Company LLP

Collaborators :

Not Divulged

Membership :

Not Divulged

Sister Concern :

Name :	Bellary Oxygen Co. Limited
Line of Business :	Manufacturer of Industrial Gases

Ultimate Holding Company (entity having control over the Company) :

Linde AG, Germany

Holding Company (entity having control over the Company) :

The BOC Group Limited, United Kingdom

(Wholly owned Subsidiary of Linde AG)

Joint Venture :

Bellary Oxygen Company Private Limited

Fellow Subsidiary (Located in India) :

· Linde Global Support Services Private Limited

· Linde Engineering India Private Limited

Fellow Subsidiary (Located outside India) :

· BOC Limited (Australia), Australia

· Linde Bangladesh Limited, Bangladesh

· Chemogas N.V., Belgium

· BOC (China) Holdings Company Limited, China

· Linde Electronics & Speciality Gases (Suzhou) Company Limited, China

· Linde Engineering (Dalian) Co. Limited, China

· Cryostar SAS, France

· Linde HKO Limited, Hong Kong

· Linde Gáz Magyarország Zrt., Hungary

· PT. Linde Indonesia, Indonesia

· Linde Japan Limited, Japan

· Linde Malaysia Holdings Berhad, Malaysia

· Linde Malaysia Sdn. Bhd., Malaysia

· Linde ROC Sdn. Bhd., Malaysia

· Linde Philippines Inc, Philippines

· Linde Gas Singapore Pte Limited, Singapore

· Linde Gas Asia Pte Limited, Singapore

· Ceylon Oxygen Limited, Srilanka

· Cryo Aktiebolag, Sweden

· AGA Aktiebolag, Sweden

· BOC Lienhwa Industrial Gases Company Limited, Taiwan

· Linde (Thailand) Public Company Limited, Thailand

· Linde CryoPlants Limited, United Kingdom

· BOC Limited, United Kingdom

· Linde North America, Inc., United States of America

· Linde Gas North America LLC, United States of America

· Linde Process Plants, Inc., United States of America

· Linde Engineering North America Inc., United States of America

· Linde Gas Vietnam Limited, Vietnam

CAPITAL STRUCTURE

As on 31.12.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
86000000	Equity Shares	Rs.10/- each	Rs.860.000 Million

Issued Capital:

No. of Shares	Type	Value	Amount
85286209	Equity Shares	Rs.10/- each	Rs.852.862 Million

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
85284223	Equity Shares	Rs.10/- each	Rs. 852.840 Million

Reconciliation of shares outstanding at the beginning and at the end of the reporting period

Particular	No. of Shares	Rs in Million
At the commencement and at the end of the period	85286209	852.860

Shares held by holding/ultimate holding company and/or their subsidiaries/associates

Particular	No. of Shares	Rs in Million
Equity shares of Rs. 10 each fully paid up held by
The BOC Group Limited, U.K., holding company	63963167	639.630

Particulars of shareholders holding more than 5% shares of a class of shares

Particular	No. of Shares	% of Holding
Equity shares of Rs. 10 each fully paid up held by
The BOC Group Limited, U.K., holding company*	63963167	75.00

Rights, preferences and restrictions attached to equity shares

Subject has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

*Consequent upon the offer for sale through the stock exchange mechanism on 17 May 2013 made by The BOC Group Limited, a member of The Linde Group, the promoter shareholding in the Company was reduced from 89.48% to 75% in compliance with minimum public shareholding requirement under the Listing Agreement.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2014	31.12.2013	31.12.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	852.840	852.840	852.840
(b) Reserves & Surplus	13039.380	13420.430	12486.280
(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)	13892.220	14273.270	13339.120
(3) Non-Current Liabilities
(a) long-term borrowings	11024.000	11156.870	8504.170
(b) Deferred tax liabilities (Net)	1828.860	1992.050	1439.520
(c) Other long term liabilities	272.770	253.490	228.130
(d) long-term provisions	2813.240	2657.780	2409.650
Total Non-current Liabilities (3)	15938.870	16060.190	12581.470
(4) Current Liabilities
(a) Short term borrowings	1500.000	1320.000	1600.000
(b) Trade payables	2508.360	3104.840	2577.770
(c) Other current liabilities	4249.480	4178.720	3059.470
(d) Short-term provisions	706.220	722.910	982.860
Total Current Liabilities (4)	8964.060	9326.470	8220.100
TOTAL	38795.150	39659.930	34140.690
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	21879.220	16492.460	16782.710
(ii) Intangible Assets	128.550	156.210	58.420
(iii) Capital work-in-progress	3560.920	7437.320	5761.750
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	150.070	150.070	150.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5424.650	5159.780	3219.300
(e) Other Non-current assets	1438.930	2929.890	1409.990
Total Non-Current Assets	32582.340	32325.730	27382.170
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	708.630	762.890	714.900
(c) Trade receivables	3073.850	2908.340	3095.640
(d) Cash and cash equivalents	571.700	583.430	462.950
(e) Short-term loans and advances	1231.580	1532.290	2098.470
(f) Other current assets	627.050	1547.250	386.560
Total Current Assets	6212.810	7334.200	6758.520
TOTAL	38795.150	39659.930	34140.690

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.12.2014	31.12.2013	31.12.2012
	SALES
		Income		14913.460	14284.600	13244.400
		Other Income		108.140	83.350	34.260
		TOTAL (A)		15021.600	14367.950	13278.660
Less	EXPENSES
		Cost of Materials Consumed		931.600	2310.970	2339.770
		Purchase of Stock-in-trade		752.530	394.530	663.920
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		7.740	(33.730)	31.250
		Employee Benefits Expenses		909.140	815.190	822.860
		Other Expenses		9542.690	8182.680	7355.100
		Exceptional Item		0.000	(502.700)	(718.620)
		TOTAL (B)		12143.700	11166.940	10494.280
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			2877.900	3201.010	2784.380
Less	FINANCIAL EXPENSES (D)			1028.660	744.500	404.170
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			1849.240	2456.510	2380.210
Less	DEPRECIATION/ AMORTISATION (F)			1813.460	1290.430	1125.210
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			35.780	1166.080	1255.000
Less	TAX (H)			(18.220)	392.800	360.200
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			54.000	773.280	894.800
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			5149.730	4564.780	3863.400
Less	APPROPRIATIONS
			Proposed Equity Dividend	127.930	127.930	127.930
			Tax on Proposed Equity Dividend	25.580	21.740	20.750
			Transfer to General Reserve	2.700	38.660	44.740
	BALANCE CARRIED TO THE B/S			5047.520	5149.730	4564.780
	Earnings in Foreign Currency (F.O.B. basis)			242.160	771.140	1425.770
	IMPORTS
			Components Stores & Spares	234.250	410.400	853.040
			Capital Goods	750.080	247.120	5741.770
	TOTAL IMPORTS			984.330	657.520	6594.810
	Earnings Per Share (Rs.)			0.63	9.07	10.49

QUARTERLY RESULTS

(Rs. In Million)

Particulars	31.03.2015 (Unaudited)
	1^st Quarter
Net Sales	3721.000
Total Expenditure	3176.900
PBIDT (Excluding Other Income)	544.000
Other Income	54.800
Operating Profit	598.900
Interest	236.400
Exceptional Items	(95.000)
PBDT	267.500
Depreciation	391.800
Profit Before Tax	(124.300)
Tax	(268.100)
Provisions and contingencies	0.000
Profit After Tax	143.900
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	143.900

KEY RATIOS

PARTICULARS		31.12.2014	31.12.2013	31.12.2012
Net Profit Margin PAT / Sales	(%)	0.36	5.41	6.76
Operating Profit Margin (PBDIT/Sales)	(%)	19.30	22.41	21.02
Return on Total Assets (PBT/Total Assets)	(%)	0.10	3.64	4.45
Return on Investment (ROI) (PBT/Networth)		0.00	0.08	0.09
Debt Equity Ratio (Total Debt /Networth)		0.90	0.87	0.76
Current Ratio (Current Asset/Current Liability)		0.69	0.79	0.82

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2013	31.12.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	852.840	852.840	852.840
Reserves & Surplus	12486.280	13420.430	13039.380
Net worth	13339.120	14273.270	13892.220
long-term borrowings	8504.170	11156.870	11024.000
Short term borrowings	1600.000	1320.000	1500.000
Total borrowings	10104.170	12476.870	12524.000
Debt/Equity ratio	0.757	0.874	0.902

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2012	31.12.2013	31.12.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	13244.400	14284.600	14913.460
		7.854	4.402

NET PROFIT MARGIN

Net Profit Margin	31.12.2012	31.12.2013	31.12.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	13244.400	14284.600	14913.460
Profit	894.800	773.280	54.000
	6.76%	5.41%	0.36%

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	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)	Yes
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

COMPANY OVERVIEW

Subject is a public company. It is incorporated under the Companies Act, 1956 and its shares are listed on the National Stock Exchange of India Limited (NSE), Bombay Stock Exchange Limited (BSE) and Calcutta Stock Exchange Limited (CSE). Subject is primarily engaged in manufacture of industrial and medical gases and construction of cryogenic and non-cryogenic air separation plants.

FINANCIAL PERFORMANCE

Subject recorded a subdued performance during the year, amidst weak economic conditions and contraction of demand in most of the end user industry segments. While inflation showed some signs of abatement during the year, the slowdown in manufacturing and industrial activity across the country and deferment of new capital expenditure in most segments made market conditions very challenging.

Besides, higher depreciation related to recently commissioned plants and higher finance cost on borrowings severely impacted the financial performance for the year.

The sluggish demand faced by most of the end user industry segments and many of our customers through the year and over supply position in the markets resulted in significant under utilisation of installed capacities, further impacting the financial performance. Revenue from operations during the year stood at Rs.16148.670 million reflecting a growth of 6% compared to last year. This growth was primarily achieved by revenues realized from the newly commissioned plants, while the base gases and engineering business remained subdued.

Gases business grew by 22% during the year mainly driven by commissioning of 2X 853 tonnes per day (tpd) - air separation units (ASU) at Steel Authority of India Ltd’s works at Rourkela. The incremental revenues from ramping up of the newly commissioned plants in the previous year, viz. 2,550 tpd ASU at Tata Steel in Jamshedpur and 330 tpd merchant ASU at Taloja also contributed to higher revenues in the Gases business. The Project Engineering Division (PED) achieved a turnover of Rs.2001.580 million during the year compared to Rs.3676.660 million last year due to significantly lower number of new projects. The PED’s business is primarily driven by capacity expansion in steel and refinery segments.

These sectors witnessed restrained capex spend by major customers due to adverse market conditions, high interest rates and policy bottlenecks in mining and other core sectors. However, the Division managed to improve overall profit margin through cost savings and efficient project management in ongoing projects.

The operating profit for the year amounted to Rs.2877.900 million, which grew by around 7% as compared to Rs.2698.310 million in the previous year. This includes a profit of Rs.66.400 million shown as other income arising from disposal of right to use an apartment at Kolkata. This growth in operating profit has been achieved through focus on application development and promoting value added products like shielding gases and helium. Subject also initiated cost control measures on various administrative fronts and focused on delivering operational efficiency including by using Six Sigma.

The Profit before exceptional items and taxes for the year amounted to Rs.35.780 million as against Rs.663.380 million in previous year. The decrease is on account of significantly higher depreciation charge of Rs.1813.460 million as compared to Rs.1290.430 million in the previous year mainly due to capitalization of new ASUs at SAIL, Rourkela and impairment in value of certain assets under capital work in progress.

The steep increase in finance cost from Rs.744.500 million to Rs.1028.660 million further impacted the profits for the year. The significant increase in the finance cost during the year is mainly on account of interest on ECB availed for SAIL Rourkela ASUs, which has been fully charged to revenue during the year following the capitalisation of the ASUs.

Net profit for the year stood at Rs.54.000 million as against Rs. 773.280 million in the previous year, which included exceptional income of Rs.502.700 million from sale of land at Ahmedabad.

INDUSTRY DEVELOPMENTS

The gases business is capital intensive by nature as it requires large investments in setting up of air separation units as well new packaged gases sites. The supply chain in the gases business also requires significant investments in the form of distribution assets and storage networks to service bulk volumes as well as in the form of cylinders to service relatively smaller volumes in packaged gases business. The industry comprises of major users in steel, chemicals and refinery sectors and a large number of merchant liquid customers primarily in metal, glass, automobile, petrochemicals and pharmaceutical sectors, besides customers for medical gases. New applications continue to provide growth opportunities. This growth is also supported by the increasing outsourcing of gases requirement under a “Build Own Operate“ (BOO) type of supply scheme opportunities mainly in steel and refinery sectors.

GASES AND RELATED PRODUCTS

The Gases and Related Products segment comprises of pipeline gas supplies (On-site) to very large industrial customers – mainly primary steel production and refining industry, supply of liquefied gases through cryogenic tankers (Bulk) to cater to mid-size demands across a wide range of industrial sectors and compressed gas supply in cylinders (Packaged Gases) for meeting smaller demand for gases mainly across fabrication and manufacturing and construction industry. The primary production of gases (oxygen, nitrogen and argon) is mostly achieved through cryogenic distillation of air in Air Separation Units (ASU).

Oxygen, Nitrogen and Argon may be produced in the gaseous state and supplied through pipeline to the on- site customers, or produced in liquid form and stored in insulated cryogenic tanks for supply to bulk customers or further processed in the Packaged Gas plants to bottle compressed gas in cylinders. The strategy of the bulk and packaged gas business continues to be building and sustaining market leadership through application led gas sales and enhanced service levels.

The Healthcare business provides high quality gases for pharmaceutical use such as medical oxygen, synthetic air, nitrous oxide in addition to providing state of the art medical gas distribution systems to major hospitals. Subject also provides total gas management solutions to private hospital chains and has ambitious plans to expand beyond its current footprint in metro cities. The strategy of the healthcare business is to sustain its leadership position in the large hospitals in metro cities and increase penetration in tier 2 cities with particular focus on supporting private hospital chains in providing total gas management solutions.

The turnover of subject’s gases business for the year 2014 recorded a growth of about 22% over 2013 despite general slowdown in industrial activities in several sectors. As explained earlier, this growth was primarily achieved by revenues realized from the newly commissioned plants, while the base gases remained subdued.

The delay in commissioning of some of the projects impacted the gases business. Merchant and packaged gases business however benefited from cyclical upturn in the automobile industry, which helped Subject in achieving highest ever argon volumes even in these difficult conditions. During the year, subject was successful in converting a number of its gases application leads into business with customers including wins in new sectors like cement and aluminium. This further reinforces the strength of Linde’s technology solutions that is helping subject to differentiate itself in the markets. As a result, your Company managed to secure higher oxygen volumes during the year.

Higher sale of helium was achieved due to demand from customers in fibre optic cable segment and Government agencies in defence and space research.

Operations played a critical role in a difficult year with focus in the areas of power cost reduction, loss reduction, reliability improvement and plant mode optimization with the help of the Remote Operating Centre (ROC). During the year, subject commissioned its 2X853 tpd ASUs at SAIL Rourkela works. The Hyderabad 65 tpd ASU was not operational following an optimisation programme with product being outsourced from other plants.

Subject continues its development towards positioning itself as a solutions provider on the back of gases applications, technologies and services. During 2014, despite a challenging business climate, a large number of business wins were achieved on the back of this strategy. Linde’s REBOX® technology for steel reheating has been installed at a number of steel mills in India. The first contract in India for Linde’s world leading technology for aluminium melting was also signed. Activities in the cement, heat treatment, foundry, chemistry, and pharma industries are developing at a high pace with successful installations of Linde’s technical solutions. Opportunities are also being pursued in the food industry, particularly relating to freezing. Subject has a strong focus on the automotive industry and its ancillaries. A technology centre with focus on welding technologies and the automotive industry has been established in Pune. Besides, a number of opportunities are being pursued in the water treatment and clean energy sectors, including involvement in an algae-to-oil project.

The Packaged Gases Business (industrial) grew by about 6% in an intensely competitive market dominated by smaller retailers and refillers. The packaged gases consist of compressed industrial oxygen, argon, nitrogen, electronic and special gases. During the year, your Company created differentiation in its product and service offerings by launch of 230 bar oxygen and argon cylinders in key market zones such as Bangalore, Pune and Dahej. By leveraging its technical know-how and creating the right value proposition, your Company has been successful in stepping up the shielding gases volumes by more than 13% in 2014.

The Special Products and Chemicals (SP&C) business grew significantly by almost 58% on the strength of helium supplies for manufacture of optic fibre as well as in areas of space research and technologically advanced fields of medicine. Since commissioning of Helium Trans filling operation at Taloja in 2012, the Company has penetrated successfully into the packaged helium as well as Dewar business. Business in XL grade gases, calibration and process gas mixtures also witnessed good growth – mainly from the Lighting and Automotive Industry. The chemicals and electronics gases business remained subdued due to weak demand from the industry.

The Healthcare segment continues to provide another growth lever for your Company. However, the business is challenged by intense competition and lack of adequate standards that creates an uneven playing field, where the Company has to compete against a lower standard of compliance by local players. This has an impact on the profitability of the Healthcare segment. In this back drop, your Company is focusing on reducing cost, getting out of low margin accounts, and creating differentiated Product and Service Offers (PSOs) including Total Gas Management, where Linde India becomes an integrated part of the Hospital by managing the Gas Supply to patients. Another initiative being pursued in Healthcare business is the introduction of best in class lightweight cylinders with Linde Integrated Valve (LIV), which sets a new benchmark in medical oxygen packaging for use within the hospital wards.

During the year, the National Pharmaceutical Pricing Authority (NPPA) Ministry of Chemicals, Government of India, fixed a ceiling price for medical oxygen and nitrous oxide by classifying them as emergency drugs. This has created a new challenge for these products in the Healthcare markets and your Company has taken adequate steps to address the same. Subject has also made necessary representation to the Government Authorities in this regard.

Subject also continues to work on developing the gases pipeline network at Dahej in Gujarat by adding new customers that can be served from the ASU under construction. Subject is also focusing to develop a pipeline scheme in the Kalinganagar industrial area in Odisha with a long term strategy to grow the gases business in this prominent steel industry cluster.

Subject sees several opportunities in the Gases business in the medium to long term, which include projected increase in India’s steelmaking capacity to 200 million metric tonnes by 2020, decaptivation and outsourcing of gases demand by refineries and the Government’s ambitious “Make in India“ campaign, with an aim to turn the country into a global manufacturing hub. On the other hand, rising power costs in West and unreliable power supply faced at some of the tonnage plants such as Hyderabad and Selaqui, over capacity in the markets resulting in pricing pressure in merchant business are considered as some of the threats.

PROJECT ENGINEERING

The Project Engineering Division engages in the business of engineering, procurement, supply, construction and commissioning of Air Separation Units (ASU), nitrogen generators, hydrogen Pressure Swing Adsorption (PSA) plants, compressed air systems and gas distribution and storage systems. The Project Engineering Division (PED) is engaged for in house Gases Division projects, as well as for sale of plants to third party customers.

The market condition remained extremely challenging for PED in 2014 as well, when the Division order intake reduced significantly, which is also reflected in the decrease in its revenues. PED achieved revenue of Rs.2001.580 million as compared to Rs.3676.660 million recorded in 2013. During the year, PED executed projects involving air separation plants, nitrogen plants, compressor air stations in steel industry both in public and private sectors. The Division has expanded its global reach during the year with a number of export orders under execution including nitrogen generator revamp for PT. Indo Rama Ventures (Indonesia), liquid nitrogen plant sale (LINIT 50) to Medipharm East Africa Limited (Nairobi). In a difficult year, the Division also managed to recover fixed costs by providing engineering supervision and commissioning services to Linde Engineering Taiwan.

Major projects executed during the year include Cryogenic N2 Generator for GAIL (India) Limited, Pata, Inert Gas and Air Compressor system for ONGC Petro Additions Ltd. Other than these projects, the Division has also completed execution of Cryogenic Nitrogen Generator at OMPL, Mangalore and MRPL Phase III, Mangalore. The Division has thus, maintained its leadership in Cryogenic Nitrogen Plant market. Besides, the Division is also constructing 2X1,250 tpd ASU for NMDC, 1,000 tpd ASU for Bhushan Steel at Meramandali in Odisha utilising technology from Linde Engineering. The execution activities for new compressed air station for RINL‘s Visakhapatnam Steel Plant and Nitrogen generation package for GSPC LNG Ltd. at Mundra, Gujarat is at its initial stages. The execution of these and several other projects is progressing well.

As a part of the ongoing support to the growth of Gases Business, PED completed commissioning of 2x853 TPD ASUs at SAIL, Rourkela. PED is currently also executing another large in house project for the Gases Division for the commissioning of 2x1,000 scale Oxygen plants at Tata Steel’s 3 MTPA steelworks at Kalinganagar in Odisha, which is expected to be completed in 2015. PED is also engaged in dismantling and relocating the 110 tpd ASU from Taloja and its commissioning at a new site at Dahej. The project is in advanced stage of completion and is expected to be on line by H1 2015.

While PED is responsible for execution of in-house ASU projects for the Gases Division, it also continues to remain focused to strengthen its product offerings leveraging on the technological support from Linde Engineering. The Division continues to endeavour to improve its competitiveness through several initiatives by increasing the indigenous component in its plants. The Division’s total third party orders in hand stood at Rs.2420.000 million as on 31 December 2014.

FINANCE

As on 31 December 2014, your Company had three loan facilities by way of External Commercial Borrowing (ECB) aggregating EUR 199.6 million from Linde AG. The facilities were executed for funding of large air separation units (ASU) at Tata Steel Jamshedpur (2,550 tpd ASU), SAIL Rourkela (2X853 tpd ASU), Tata Steel Kalinganagar (2X1,000 scale Plants) and Hydrogen SMR unit at Asian Peroxide. Out of the three facilities, two EUR facilities aggregating EUR 122 million are fully drawn down. The third facility is a fixed rate INR facility equivalent to EUR 77.6 million and is partly drawn. During the course of the year, INR equivalent of EUR 29.4 million was drawn down and EUR 21.2 million was repaid leaving a net outstanding position of EUR 155.4 million as at the end of the year. The ECBs are fully hedged both with regard to the principal and interest payments.

During the year, the Company has also negotiated and fully drawn down three-year floating rate, two term loan facilities aggregating to USD 24.90 million equivalent of Rs. 1,500 million from Citibank. The term loan facility was executed to fund ongoing small capital expenditure requirement. This facility is in addition to the two-year USD 16.8 million equivalent of Rs. 1,000 million term loan executed in the previous year.

All the three facilities are fully hedged with regard to the principal and interest payments. The overall Working Capital Demand Loan (WCDL) as on 31 December 2014 was Rs. 1,500 million. During the year, the Company transferred a sum of Rs. 0.81 million of unpaid / unclaimed dividend for the year ended 31 March 2007 to the Investor Education and Protection Fund.

OUTLOOK

India’s economy grew by about 6.2% through 2014. For 2015, the projections show optimism, which is largely due to expectation of policy reforms by the new Government at the Centre, recovery in the global economy, easing liquidity, speed on policy reforms and normal monsoons. The economy is projected to achieve a GDP growth of about 8% during 2015-16 driven by service sector and industrial growth on the back of policy reforms and lower interest rates.

Steel Production capacity in the country is set to increase to 200 million MT in 2020 as compared to a production capacity of 102 million MT in 2013. Majority of the expansion in steel making capacity is driven by country’s major steel players like Tata Steel, SAIL, Jindal Steel, etc. This increase in capacity will make India the second largest steel producing nation. The Steel industry is set to grow at a CAGR of 8-9% over the next five years.

The industrial gases business is expected to have a strong double digit growth in the medium to long term with demand coming in from Steel, Chemicals, Energy, Automobile, etc. Increase in steel production capacity in the country is likely to lead to more on-site gas plants. Besides, the “Make in India” campaign of the Government is expected to attract major investments in capital goods, infrastructure and pharma sector, which augurs well for the growth of Gases industry. Subject is also focusing on increasing its footprint in food and beverage and the oil and gas markets.

The presence of a large domestic population, along with the increase in its per capita income is expected to provide enough of a demand stimulus to ensure continued economic growth for India. All macroeconomic fundamentals will have positive impact on industrial gases and engineering business.

Subject has been able to develop itself by leveraging the strengths of its parent- both in the gases and engineering segment and putting best commercial practices in place to win large tonnage gas supply contracts and grow the merchant and packaged gases business. Subject is thus poised to become the leading industrial gases company in the country.

UNSECURED LOAN:

Particulars	31.12.2014 Rs. In Million	31.12.2013 Rs. In Million
Long Term Borrowings
Foreign currency loan from Linde AG, ultimate holding company	4209.710	6984.040
Rupee loan from Linde AG, ultimate holding company	5241.570	3132.260
Foreign currency term loan from bank	1572.720	1040.570
Short Term Borrowings
Short term loan from bank (The above loan is repayable on demand and it carries an interest rate in the range of 9.70% to 10.20% per annum payable monthly.)	1500.000	1320.000
Total	12524.000	12476.870

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31 March 2015

(Rs. In Million)

Particulars	Quarter Ended (Unaudited)
	31.03.2015
Gross income#	4089.080
Gross Sales	3915.610
Excise duties	313.270
Income from operations
Net sales (Net of excise duty)	3602.340
Other operating Income	118.630
Total Income From Operations (Net)	3720.970
2.Expenditure
a) Cost of material consumed	201.360
b) Purchases of stock in trade	173.080
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(7.010)
d) Employees benefit expenses	249.160
e) Depreciation and amortization expenses	391.760
e) Power and Fuel	1736.510
f) Contract Job Expenses	49.350
g) Contract Job Expenses	308.500
f) Other expenditure	465.990
Total expenses	3568.700
3. Profit from operations before other income and financial costs	152.270
4. Other income	54.840
5. Profit from ordinary activities before finance costs	207.110
6. Finance costs (net)	236.380
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	(29.270)
8. Exceptional item	(95.000)
9. Profit from ordinary activities before tax Expense:	(124.270)
10.Tax expenses
--Current tax	(19.030)
--MAT Credit entitlement	19.030
--Deferred tax	(268.140)
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	143.870
12.Extraordinary Items (net of tax expense)	--
13.Net Profit / (Loss) for the period (11 -12)	143.870
14.Paid-up equity share capital (Nominal value Rs. 10 per share)	852.860
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year
16.Earnings per share (before extraordinary items) of Rs. 10/- each) (not annualised):
(a) Basic and diluted	1.69
ii) Earnings per share (after extraordinary items)
(a) Basic and diluted	1.69

ELECT INFORMATION FOR THE QUARTER ENDED 31 MARCH 2015

(Rs. In Million)

Particulars	Quarter Ended (Unaudited)
	31.03.2015
PART-II
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	21321026
- Percentage of shareholding	25.00
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	-
Percentage of shares (as a % of total share capital of the company)	-
b) Non Encumbered
Number of shares	63936167
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100
Percentage of shares (as a % of total share capital of the company)	75.00
B. Investor Complaints	Quarter Ended 31.03.2015
Pending at the beginning of the quarter	0
Receiving during the quarter	3
Disposed of during the quarter	3
Remaining unreserved at the end of the quarter	0

SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT

(Rs. In Million)

Particulars	Quarter Ended (Unaudited)
	31.03.2015
1. Segment revenue
a. Gases and related products	3281.380
b. Project engineering	562.160
Total	3843.540
Less: Intersegment revenue	128.570
Add : Other unallocable income	60.840
Total income	3775.810
2. Segment results
a. Gases and related products	158.390
b. Project engineering	107.220
Total segment profit before interest, tax and exceptional item	265.610
Less: i) Interest Expense	236.380
ii) Exceptional items	95.000
iii) Other unallocable expenditure (net of unallocable income)	58.500
Total Profit before tax	(124.270)
3. Capital employed (Segment assets - Segment liabilities )
a. Gases and related products	28870.110
b. Project engineering	80.110
c. Unallocated	(14972.760)
Total	13977.460

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80023584	30/12/2006 *	661,800,000.00	United Bank of India	Old Court House Street Branch, 11,Hemanta Basu Sarani, Kolkata, West Bengal - 700001, India	-

*Date of modification Charges

CONTINGENT LIABILITIES

(Rs. In Million)

Particulars	Year ended 31.12.2014	Year ended 31.12.2013
Excise duty and service tax matters*	38.030	38.030
Other excise matters**	--	--
Sales tax matters*	111.340	107.410
Guarantee given by the Company	--	64.600
Sales tax liability transferred to a beneficiary***	27.600	27.600
Bills discounted	59.050	34.200
Other claims	16.660	15.390

* Excludes disputed matters in view of favourable appellate decisions on similar issues.

** Cryogenic vessels for gases were cleared from one factory for captive installation to the other factory of the Company. The Company is contesting the Department’s allegation that the assessable value of such inter unit transfer was not calculated as per the principles of Cost Accounting Standards-4 (CAS-4). As per the view of the management based on the facts of the case and document available, the liability would not devolve on the Company.

*** Pursuant to an approved scheme of Government of Maharashtra, certain Sales Tax Liabilities of the Company had been transferred to an eligible beneficiary, at a discount, for which a bank guarantee had been provided by the beneficiary to ensure timely payment to the concerned authorities.

FIXED ASSETS:

· Land - Freehold

· Land - Leasehold

· Buildings

· Plant and Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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.63.20
UK Pound	1	Rs.97.01
Euro	1	Rs.69.34

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	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		72

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.