MIRA INFORM REPORT

Report No. :	495736
Report Date :	06.03.2018

DENTIFICATION DETAILS

Name :	MEGHMANI ORGANICS LIMITED
Registered Office :	Plot No. 184, Phase II, G.I.D.C., Vatva, Ahmedabad - 382445, Gujarat
Tel. No.:	91-79-25831210
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	02.01.1995
Com. Reg. No.:	04-024052
Capital Investment / Paid-up Capital :	INR 254.314 Million
CIN No.: [Company Identification No.]	L24110GJ1995PLC024052
IEC No.:	0893016012
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCM0535G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Two major operating divisions – Pigments and Agro Chemicals Pigment Business Manufacture and Sales of Phthalocynine Green 7, Copper Pthalocynine Blue (CPC), Alpha Blue and Beta Blue. Agrochemicals Business Manufacture and Sales of Technical, Intermediates, Formulations of Insecticides and Herbicides. (Registered Activity)
No. of Employees :	1411 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1995 and it is having good track records. It is engaged in manufacturing of green and blue pigment products, which are used to in printing ink, plastic, paints, textiles, leather and rubber. It also manufactures a wide variety of commonly used pesticides for crop and non-crop applications; the latter includes insect control in wood preservation and food grain storage. For the financial year 2017, the company has increased its revenue from operations as compared to previous year and maintained average profitability margin of 3.71%. Rating takes into consideration sound financial profile of the company marked by healthy networth base and low debt balance sheet. Further, rating also reflects from its established market position in pigments and agrochemical industries along with diversified revenue profile and improvement in the revenue as well as profitability profile during the year. However, rating strength is partially offset by large working capital requirement, and exposure to risks inherent in the agrochemicals sector. Trade relations are reported as fair. Business is active. Payment terms are seems to be regular. In view of the aforesaid, the company can be considered 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: A+
Rating Explanation	Adequate degree of safety and low credit risk.
Date	15.05.2017

Rating Agency Name	CRISIL
Rating	Short term rating: A1
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	15.05.2017

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 06.03.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Not Divulged
Designation :	Accounts Department
Contact No.:	91-79-25831210
Date :	04.03.2018

LOCATIONS

Registered Office/ Factory :	184, Phase-II, G.I.D.C. Vatva, Ahmedabad – 382445, Gujarat, India
Tel. No.:	91-79-25831210
Mobile No.:	91-9909030549 (Mr. N. S. Bala)
Fax No.:	91-79-25833403
E-Mail :	accounts@meghmani.com kamlesh.mehta@meghmani.com helpdesk@meghmani.com exports@meghmani.com
Website	www.meghmani.com
Corporate Office :	“Meghmani House”, Shree Nivas Society, Off Vakas Gruh Road, Paldi, Ahmedabad - 380007, Gujarat, India
Tel. No.:	91-79-26640 668/ 669
Fax No.:	91-79-26640670
Mumbai Office :	A1 and B1, Ground Floor, Kalamandir Co-operative Housing Society, Chitrakar Ketakar Marg, Near Sathye College, Ville Parle (East), Mumbai - 4000057, Maharashtra, India
Tel No.:	91-22-26122640
Permanent Office – Building Under Reconstruction :	Flat No. 22/23, Vellard View Co-operative Housing Society, Tardeo Road, Mumbai, Maharashtra, India
PLANT LOCATION
Pigment – Green – Division :	Plot No. 184, Phase II, G.I.D.C. Vatva, Ahmedabad - 382445, Gujarat, India
Tel. No.:	91-79-25833403/ 25831210
Fax No.:	91-79-25833403
E-Mail :	helpdesk@meghmani.com
Pigment Blue – Division :	Plot No. 21, 21/1, G.I.D.C, Panoli, District Bharuch, Gujarat, India
Tel. No.:	91-2646-276352
Fax No.:	91-2646-276374
E-Mail :	helpdesk@meghmani.com
Pigment – Division – Dahej SEZ :	Plot No. Z-31, Z-32, Dahej SEZ Limited – Dahej, Taluka Varga, District Bharuch, Gujarat, India
Tel. No.:	91-2646-276352
Fax No.:	91-2646-276374
Agro Division- I :	Plot No. 402, 403, 404 and 452, Village Chharodi, Taluka Sanand, District- Ahmedabad - 382445, Gujarat, India
Tel. No.:	91-2717-273251
Fax No.:	91-2717-273254
E-Mail :	helpdesk@meghmani.com
Agro Division- II :	5001/B, G.I.D.C. Ankleshwar, District Bharuch, Gujarat, India
Tel. No.:	91-2646-222971
Fax No.:	91-2646-222965
E-Mail :	helpdesk@meghmani.com
Agro Division- III :	Plot No.CH-1+2/A, GIDC Dahej Taluka – Vagra, District Bharuch – 392 130, Gujarat, India
Tel. No.:	91-2641-256677/ 88
E-Mail :	helpdesk@meghmani.com
Agro Division- IV :	Plot No. 22/2, G.I.D.C. Panoli, District – Bharuch, Gujarat, India
Tel No.:	91-2646-276577
E-Mail :	helpdesk@meghmani.com

DIRECTORS

AS ON 31.03.2017

Name :	Ashishbhai Natawarlal Soparkar
Designation :	Managing Director
Address :	246/A, Lane -13, Satyagrah Chhavny, Near Bhavnirzar, Satelite Road, Ahmedabad - 380015, Gujarat, India
Date of Appointment :	02.01.1995
DIN No.:	00027480
Name :	Natwarlal Meghjibhai Patel
Designation :	Managing Director
Address :	6-B, Ashok Vatika No.1, Opposite Ekta Farm, Ambli, Bopal Road, Boda Kdev Ahmedabad -380058, Gujarat, India
Date of Appointment :	02.01.1995
DIN No.:	00027540
Name :	Jayantibhai Meghjibhai Patel
Designation :	Wholetime Director
Address :	Lane No.18, Bunglow No.359 Satyagrah Chhavani, Satellite Ahmedabad -380015, Gujarat, India
Date of Appointment :	02.01.1995
DIN No.:	00027224
Name :	Rameshbhai Meghjibhai Patel
Designation :	Wholetime Director
Address :	54 Shrinathpark Society, Behind Manekbaug Society, Ambawadi, Ahmedabad - 380015, Gujarat, India
Date of Appointment :	01.04.2009
DIN No.:	00027637
Name :	Anandbhai Ishwarbhai Patel
Designation :	Wholetime Director
Address :	53, Shrinath Park Society, Behind Manekbaug Society, Ambawadi, Ahmedabad -380015, Gujarat, India
Date of Appointment :	02.10.1995
DIN No.:	00027836
Name :	Chander Kumar Sabharwal
Designation :	Director
Address :	R - 2 / 37, Raj Nagar, Ghaziabad -201002, Uttar Pradesh, India
Date of Appointment :	02.08.2013
DIN No.:	00368621
Name :	Balkrishna Tulsidas Thakkar
Designation :	Director
Address :	L 14/265, Satyagrah Chhavni Co-Operative Society, Satellite Road, Ahmedabad -380015, Gujarat, India
Date of Appointment :	13.04.2000
DIN No.:	00430220
Name :	Chinubhai Ramanlal Shah
Designation :	Director
Address :	402, Heritage Crescent, Behind Prahlad Nagar Garden, S.G. Highway, Ahmedabad - 380051, Gujarat, India
Date of Appointment :	13.04.2000
DIN No.:	00558310
Name :	Urvashi Shah Dhirubhai
Designation :	Director
Address :	26, Akashneem Bunglows, Opposite Nehru Foundation, Bokadev, Ahmedabad -380059, Gujarat, India
Date of Appointment :	27.03.2015
DIN No.:	07007362
Name :	Manubhai Khodidas Patel
Designation :	Additional Director
Address :	141, Chitvan Bopal Ahmedabad -380058, Gujarat, India
Date of Appointment :	10.02.2018
DIN No.:	00132045
Name :	Palakodeti Venkatramana Bhaskar Rao
Designation :	Additional Director
Address :	235, Arcadia Road #03-02 Singapore 289843
Date of Appointment :	10.02.2018
DIN No.:	08058946

KEY EXECUTIVES

Name :	Ankit Natwarlal Patel
Designation :	Chief Executive Officer
Address :	B-6, Ashok Vatika No. 1 Opposite Ekta Farm, Ambli Bopal Road, Bodakdev Ahmedabad -380058, Gujarat, India
Date of Appointment :	22.05.2017
PAN No.:	AKGPP0621G
Name :	Kamlesh Mehta
Designation :	Company Secretary
Address :	1,Chandravati Society Bhairavnath Road Ahmedabad - 380028, Gujarat, India
Date of Appointment :	27.01.1995
PAN No.:	ACRPM1636K
Name :	Gurjant Singh Chahal
Designation :	Chief Finance Officer
Address :	Flat No-603, Aster-1 Supertech Emerald Court, Sector-93A, Express-Way, Noida -201301, Uttar Pradesh, India
Date of Appointment :	10.02.2018
PAN No.:	AEOPC2622L
Audit Committee:	Balkrishna T Thakkar Chinubhai R Shah Jayaraman Vishwanathan
Nomination Committee:	Chinubhai R Shah Balkrishna T Thakkar Kantibhai H Patel
Remuneration Committee:	Chinubhai R Shah Balkrishna T Thakkar Kantibhai H Patel
Corporate Social Responsibility Committee:	Chinubhai R Shah Balkrishna T Thakkar Ashish N Soparkar Jayanti M Patel Natwarlal M Patel

SHAREHOLDING PATTERN

AS ON DECEMBER 2017

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Promoter & Promoter Group	121229145	50.48
(B) Public	118906376	49.52
(C1) Shares underlying DRs	14178690	0.00
Grand Total	254314211	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

Category of Shareholder	No. of Shares	Percentage of Holding
A1) Indian		0.00
Individuals/Hindu undivided Family	121229145	50.48
Ashishbhai Natawarlal Soparkar	24585628	10.24
Patel Natwarlal Meghjibhai	20539850	8.55
Jayantibhai Meghjibhai Patel	17824390	7.42
Rameshbhai Meghjibhai Patel	15402392	6.41
Anandbhai Ishwarbhai Patel	7753200	3.23
Taraben Jayantilal Patel	7360000	3.06
Patel Natubhai Meghjibhai	5172280	2.15
Ankit Natubhai Patel	3020865	1.26
Patel Naynaben Anandbhai	2300000	0.96
Bhartiben Natubhai Patel	2000000	0.83
Patel Karana Rameshbhai	1865000	0.78
Disha Natubhai Patel	1500000	0.62
Maulik Jayantibhai Patel	1270000	0.53
Patel Rameshbhai Meghjibhai	1020000	0.42
Patel Kalpana Rameshbhai	1000000	0.42
Vaishakhi Rameshbhai Patel	1000000	0.42
Patel Jayantibhai Meghjibhai	736000	0.31
Kanti Bhai Meghjibhai Patel	700000	0.29
Kantibhai M Patel	780000	0.32
Haribhai Meghjibhai Patel	435000	0.18
Deval A Soparkar	410710	0.17
Ruchi Ashishbhai Soparkar	410710	0.17
Anand I Patel	380000	0.16
Kruti Adesh Patel	380000	0.16
Patel Ganpatbhai Meghjibhai	350000	0.15
Ishwarbhai Meghjibhai Patel	300000	0.12
Popatbhai M Patel (Huf)	270000	0.11
Popatbhai Meghjibhai Patel	225000	0.09
Patel Darshan Anandbhai	150000	0.06
Ashishbhai N. Soparkar	127320	0.05
Patel Damini Narendra	91500	0.04
Hansaben Amrutbhai Patel	82400	0.03
Kaushal Ashishbhai Soparkar	1350800	0.56
Kunverben Ishwarbhai Patel	200000	0.08
Chintan Anandbhai Patel	153000	0.06
Sandhya Maulik Patel	83100	0.03
Sub Total A1	121229145	50.48
A2) Foreign		0.00
A=A1+A2	121229145	50.48

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

Category of Shareholder	No. of Shares	Percentage of Holding
B1) Institutions		0.00
Mutual Funds/	447761	0.19
Alternate Investment Funds	405907	0.17
Foreign Portfolio Investors	12106854	5.04
Gadia Naveen Vishwanath	2938927	1.22
Financial Institutions/ Banks	1001708	0.42
Sub Total B1	13962230	5.81
B2) Central Government/ State Government(s)/ President of India		0.00
Central Government/ State Government(s)/ President of India	66746	0.03
Sub Total B2	66746	0.03
B3) Non-Institutions		0.00
Individual share capital upto INR 0.200 Million	66503704	27.69
Individual share capital in excess of INR 0.200 Million	10302984	4.29
Any Other (specify)	28070712	11.69
HUF	4589852	1.91
Trusts	2500	0.00
NRI – Non- Repat	1025001	0.43
NRI – Repat	3032743	1.26
Clearing Members	2319964	0.97
Bodies Corporate	17100652	7.12
VLS FINANCE LIMITED	5930000	2.47
Sub Total B3	104877400	43.67
B=B1+B2+B3	118906376	49.52

BUSINESS DETAILS

Line of Business :

Two major operating divisions – Pigments and Agro Chemicals

• Pigment Business

Manufacture and Sales of Phthalocynine Green 7, Copper Pthalocynine Blue (CPC), Alpha Blue and Beta Blue.

• Agrochemicals Business

Manufacture and Sales of Technical, Intermediates, Formulations of Insecticides and Herbicides.

(Registered Activity)

Products / Services :

Name and Description of main products / services	NIC Code
Pigments	3031
Agro Chemicals	3014
Other	--

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

1411 (Approximately)

Bankers :

Banker Name :	State Bank of India
Branch :	CAG Branch, 58, Shreemali Society, Navrangpura, Ahmedabad -380 009, Gujarat, India
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

• HDFC Bank Limited, Mithakhali, Ahmedabad -380 009, Gujarat, India
• ICICI Bank Limited, JMC House, Opposite Parimal Garden, Ambawadi, Ahmedabad 380 009, Gujarat, India
• Standard Chartered Bank, Ground Floor, Abhijeet II, Mithakhali Six Roads, Ahmedabad – 380 006, Gujarat, India

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Term Loan Facilities from Banks : In Indian Currency (Current Maturity of Term Loan INR 261.106 Million (Previous Year INR 261.106 Million)	769.811	1033.445
SHORT TERM BORROWINGS
Loans Repayable on Demand from Banks :
In Indian Currency	2232.936	2586.654
In Foreign Currency	113.081	0.000
Total	3115.828	3620.099

NOTE:

LONG TERM BORROWINGS

Details of Security and Repayment Terms :

i Rupee Term Loan facility of INR 300.000 Million from HDFC Bank, Near Mithakhali Cross Road, Ahmedabad. The facility is Secured by First Pari Passu charge with ICICI Bank Limited on moveable and immoveable fixed assets held at Z-31 and Z-32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch and repayable in 20 Quarterly installments of INR 150.000 Million each commencing from 30th April, 2016 and interest @ base rate plus 1.75% per annum with monthly rests. At present interst rate is 9.65% with moratorium of 2 years.

ii Rupee Term Loan facility of INR 450.000 Million from ICICI Bank Limited, JMC House, Ambawadi, Ahmedabad. The facility is Secured by First Pari Passu charge with HDFC Bank on moveable and immoveable fixed assets held at Z-31 and Z-32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch and repayable in 24 Quarterly installments of INR 18.750 Million each commencing from 30th June, 2016 and interest @ base rate plus 2.10% per annum with monthly rests. At present interst rate is 12.10% with moratorium of 2 years. The Company has prepaid the said Term Loan on 29th December, 2015.

iii Rupee Term Loan facility of INR 650.000 Million from Yes Bank Limited 4th Floor, Nehru Centre, Discovery of India Bldg, Dr. A. B. Road, Worli, Mumbai– 400018. The facility is secured by exclusive charge on leasehold admeasuring 50,000 Square Meter bearing Plot No. CH-1+2/A GIDC Industrial Estate Dahej, Taluka Vagra, District Bharuch, with all the buildings and structures standing thereon and all Plants, Machineries, Fixtures and Fittings attached to the earth and or permanently fastened to earth pertaining to Company's unit at Plot No. CH-1+2/A GIDC Dahej and repayable in 20 Equal Quarterly Installments of INR 32.500 Million starting after a moratorium period of 1 year from the date of disbursement i.e. from 02.10.2015 The current applicable interest rate is 9.90% p.a. The Company has prepaid the said Term Loan on 7th December, 2015.

iv The Term Loan facility of INR 1067.500 Million from State Bank of India, Corporate Accounts Group Branch, 58, Shrimali Society, Ahmedabad, is secured by Agreement of Hypothecation of Goods and Assets dated 30.11.2015. The facility is secured by first charge on all the Company's movable fixed assets at (a) Agro Division III Plant at Plot No. CH 1+2/A, GIDC Dahej, Taluka Vagra, District-Bharuch 392130 and (b) Pigment Blue Division at Plot No. Z-31, Z-32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch The current effective rate is 9.90% p. a. on floating basis with monthly rests. The Term Loan will be repaid in 26 quarterly instalments starting from 31st December, 2015 and on 31st March, 2022. The details are as under.

1 Two Quarterly instalments of INR 32.500 Million each starting from 31.12.2015

2 Seventeen Quarterly instalments of INR 51.250 Million each starting from 30.06.2016 3 Seven Quarterly instalments of INR 18.750 Million each starting from 30.09.2020

v. Rupee Term Loan facility of INR 650.000 Million from Yes Bank Limited 4th Floor, Nehru Centre, Discovery of India Bldg, Dr. A. B. Road, Worli, Mumbai– 400018. The facility is secured by exclusive charge on leasehold admeasuring 50,000 Square Meter bearing Plot No. CH-1+2/A GIDC Industrial Estate Dahej, Taluka Vagra, District Bharuch, with all the buildings and structures standing thereon and all plants, machineries, fixtures and fittings attached to the earth and or permanently fasted to earth pertaining to Company's unit at Plot No. CH-1+2/A GIDC and repayable in 20 equal quarterly installments of INR 32.500 Million starting after a moratorium period of 1 year from the date of disbursement i.e. from 02.10.2015 The current applicable interest rate is 11.75% p.a. The Company has Prepaid the said Term Loan on 30th November 2015.

SHORT TERM BORROWINGS

i The interest rate on Working Capital facilities from State Bank of India, HDFC Bank Limited, Standard Chartered Bank and ICICI Bank Limited (Collectively known as Consortium Bankers) varies within the range of 8.15% to 10.45% (both

inclusive) and are secured by :-

(a) First Pari Passu charge created on 9th October, 2003 for INR 794.500 Million was further extended on 28th May 2005 for INR 1553.500 Million, on 23rd January, 2007 for INR 2186.500 Million and on 28th August, 2009 for INR 3430.800 Million in favour of State Bank of India and its Consortium Banks by way of hypothecation of the entire stock of raw materials, work in process, finished goods, stores and spares and receivables. The present consortium is lead by State Bank of India.

(b) First Pari Passu charge on immovable fixed assets to State Bank of India and its consortium bank as collateral security for the working capital facilities of INR 3430.800 Million. The present consortium is lead by State Bank of India.

(c) The indenture of the mortgage created on immovable properties are located at :

(i) Plot No. 168,180,183 and 184 of GIDC Industrial Estate Vatva, Ahmedabad.

(ii) Block No. 402,403,404 and 452 at Village Chharodi, Taluka Sanand, District Ahmedabad.

(iii) Plot No. 21 & 21/1 of GIDC Industrial Estate Panoli, Taluka Ankleshwar, Bharuch.

(iv) Plot No.5001/B of GIDC Industrial Estate, Ankleshwar, Bharuch.

ii HDFC Bank Limited short term Unsecured loan of INR 100.000 Million has been paid by the Company on 11.05 2015.

Auditors :

Name :

Khandwala and Khandwala

Chartered Accountants

Address :

2^nd Floor, “HRISHIKESH”, Vasantbaug Society, Opoosite Water Tank, Gulbai Tekra, Ahmedabad - 380006, Gujarat, India

Tel No.:

91-79-66083800

Fax No.:

91-79-66083900

Joint Auditor :

Name :

KPMG

Chartered Accountants

Address :

Safal Profitaire, B4, Third Floor, Corporate Road, Opposite Auda Garden, Prahladnagar, Ahmedabad – 380 015, Gujarat, India

Memberships :

Not Available

Collaborators :

Not Available

Subsidiaries of the company:

• Meghmani Organics USA, Inc.(MOL-USA)
• Meghmani Europe BVBA(MOL-EUROPE)
• PT Meghmani Organics Indonesia(MOL-INDONESIA)
• Meghmani Overseas FZE-Dubai
• Meghmani Finechem Limited (MFL)

Associates:

• Latasha Exports Limited

Enterprises in which Key Managerial Personnel [KMP] & their relatives have significant influence:

• Meghmani Pigments
• Ashish Chemicals
• Tapsheel Enterprise
• Meghmani Infrastructures
• Meghmani Dyes & Intermediates LLP
• Meghmani Industries Limited
• Meghmani Chemicals Limited
• Vidhi Global Chemicals Limited
• Panchratna Corporation
• Meghmani LLP (Formerly Meghmani Unichem LLP)
• Matangi Industries LLP
• Diamond Engineering Co.
• Delta Electricals
• Navratna Specialty Chemicals LLP
• Uniworth Enterprises LLP
• Trent Chemicals

CAPITAL STRUCTURE

AS ON 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
370000000	Equity Shares	INR 1/- each	INR 370.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
254314211	Equity Shares	INR 1/- each	INR 254.314 Million

Reconciliation of the number of shares

Equity Shares	Number of Shares	INR IN Million
As at beginning of the year	254314211	254.314
Add : Issued During the year	--	--
Less : Shares Bought Back / Redemption etc	--	--
As at closing of the year	254314211	254.314

Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	INR IN Million
DBS Nominees (Private) Limited	22653600	22.654
Mr. Jayanti Patel	18560390	18.560
Mr. Ashish Soparkar	24585628	24.586
Mr. Natwarlal Patel	25712130	25.712
Mr. Ramesh Patel	16422392	16.422
As at closing of the year	107934140	107.934

The Company has only one class of Equity Shares having face value of Re 1/- per share. Each Equity Shareholder has one voting right. All Equity Shareholders have equal dividend rights in proportion to their shareholding.

The Company has paid Interim dividend of ` Nil Per Equity Share amounting to INR Nil (Previous Year Interim dividend of INR 0.30 per Equity Share was paid amounting to INR 76.294 Million on 254314211 Equity Shares of Re 1/- each. The Interim Dividend was considered as Final Dividend.)

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET (STANDALONE)

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	254.314	254.314	254.314
(b) Reserves & Surplus	6074.786	5661.645	5405.278
(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)	6329.100	5915.959	5659.592
(3) Non-Current Liabilities
(a) long-term borrowings	769.811	1033.445	1335.000
(b) Deferred tax liabilities (Net)	274.808	238.822	274.643
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	40.207	37.252	21.377
Total Non-current Liabilities (3)	1084.826	1309.519	1631.020
(4) Current Liabilities
(a) Short term borrowings	2346.017	2586.654	1972.845
(b) Trade payables	1551.515	1629.184	1276.624
(c) Other current liabilities	599.313	528.854	779.919
(d) Short-term provisions	0.972	0.497	226.496
Total Current Liabilities (4)	4497.817	4745.189	4255.884
TOTAL	11911.743	11970.667	11546.496
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3748.869	3709.802	3855.850
(ii) Intangible Assets	92.496	120.375	23.059
(iii) Capital work-in-progress	65.644	153.269	48.696
(iv) Intangible assets under development	94.469	71.821	107.207
Investments in Subsidiary /Associate	1244.340	1242.605	0.000
(b) Non-current Investments	5.843	5.843	1385.917
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	66.074
(e) Other Non-current assets	69.560	50.272	0.497
Total Non-Current Assets	5321.221	5353.987	5487.300
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2090.362	2638.717	1808.220
(c) Trade receivables	2977.663	2948.637	3026.039
(d) Cash and cash equivalents	91.870	96.842	112.073
(e) Short-term loans and advances	0.000	41.342	941.274
(f) Other current assets	1430.627	891.142	171.590
Total Current Assets	6590.522	6616.680	6059.196
TOTAL	11911.743	11970.667	11546.496

PROFIT & LOSS ACCOUNT (STANDALONE)

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	11174.657	10301.656	9481.840
	Other Income	109.635	240.131	185.918
	TOTAL	11284.292	10541.787	9667.758
Less	EXPENSES
	Cost of Materials Consumed	5509.616	5334.829	5051.515
	Purchases of Stock-in-Trade	305.256	434.536	532.712
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	599.836	(270.511)	229.167
	Employees benefits expense	484.463	432.111	544.182
	Other expenses	2230.695	2547.506	2125.797
	Excise Duty on Sales	712.748	710.527
	Exceptional Items	38.106	81.144	35.081
	TOTAL	9880.720	9270.142	8518.454
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1403.572	1271.645	1149.304
Less	FINANCIAL EXPENSES	364.166	413.085	476.580
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1039.406	858.560	672.724
Less/ Add	DEPRECIATION/ AMORTISATION	384.698	361.867	350.291
	PROFIT/ (LOSS) BEFORE TAX	654.708	496.693	322.433
Less	TAX	239.602	133.940	60.275
	PROFIT/ (LOSS) AFTER TAX	415.106	362.753	262.158
Add:	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	3177.855	2947.777	2856.514
Less:	APPROPRIATIONS
	Transfer to General Reserve	0.000	27.500	27.500
	Debenture Redemption Reserve	0.000	13.349	41.670
	Proposed Dividend / Interim Dividend Paid	0.000	76.294	101.725
	Dividend Distribution Tax	0.000	15.532	0.000
	Balance Carried to the B/S	3592.961	3177.855	2947.777
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	NA	6956.550	6980.307
	TOTAL EARNINGS	NA	6956.550	6980.307
	IMPORTS
	Raw Materials	NA	519.437	473.995
	Trading Purchases	NA	45.357	223.535
	TOTAL IMPORTS	NA	564.794	697.530
	Earnings / (Loss) Per Share (INR)	1.63	1.43	1.03

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	261.106	261.106	565.000
Cash generated from operations	1335.176	961.338	1477.301
Net Cash from Operating Activities	1199.138	793.077	1417.460

QUARTERLY RESULTS

Particulars	30.06.2017 (Unaudited)	30.09.2017 (Unaudited)	31.12.2017 (Unaudited)
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net sales	3295.180	3434.490	3073.060
Total Expenditure	2839.640	2884.930	2598.690
PBIDT (Excluding Other Income)	455.540	549.560	474.370
Other income	47.500	79.550	6.950
Operating Profit	503.040	629.110	481.320
Interest	79.470	75.320	80.450
Exceptional Items	NA	(12.330)	NA
PBDT	423.580	541.460	400.870
Depreciation	99.890	103.820	112.540
Profit Before Tax	323.690	437.640	288.320
Tax	132.230	149.660	116.980
Provisions and contingencies	NA	NA	NA
Profit after tax	191.460	287.980	171.350
Extraordinary Items	NA	NA	NA
Prior Period Expenses	NA	NA	NA
Other Adjustments	NA	NA	NA
Net Profit	191.460	287.980	171.350

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	97.26	104.47	116.49
Account Receivables Turnover (Income / Sundry Debtors)	3.75	3.49	3.13
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	97.39	103.07	83.44
Inventory Turnover (Operating Income / Inventories)	0.67	0.48	0.64
Asset Turnover (Operating Income / Net Fixed Assets)	0.35	0.31	0.28

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.46	0.50	0.53
Debt Equity Ratio (Total Liability / Networth)	0.53	0.66	0.68
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.71	0.80	0.75
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.63	0.69	0.71
Interest Coverage Ratio (PBIT / Financial Charges)	3.85	3.08	2.41

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	3.71	3.52	2.76
Return on Total Assets ((PAT / Total Assets) * 100)	%	3.48	3.03	2.27
Return on Investment (ROI) ((PAT / Networth) * 100)	%	6.56	6.13	4.63

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.47	1.39	1.42
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.00	0.84	1.00
G-Score Ratio Financial (Networth / Total Assets)	0.53	0.49	0.49
G-Score Ratio Debt (Debts / Equity Capital)	13.28	15.26	15.23
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.47	1.39	1.42

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	INR 1/-
Market Value	INR 90/-

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	254.314	254.314	254.314
Reserves & Surplus	5405.278	5661.645	6074.786
Share Application money pending allotment	0.000	0.000	0.000
Net worth	5659.592	5915.959	6329.100
Long-Term Borrowings	1335.000	1033.445	769.811
Short Term Borrowings	1972.845	2586.654	2346.017
Current Maturities of Long term debt	565.000	261.106	261.106
Total borrowings	3872.845	3881.205	3376.934
Debt/Equity ratio	0.684	0.656	0.534

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	9481.840	10301.656	11174.657
		8.646	8.474

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	9481.840	10301.656	11174.657
Profit	262.158	362.753	415.106
	2.76%	3.52%	3.71%

ABRIDGED BALANCE SHEET (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2017	31.03.2016
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	254.314	254.314
(b) Reserves & Surplus	6930.230	6058.086
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Non-controlling interests	1547.401	1262.950
Total Shareholders’ Funds (1) + (2)	8731.945	7575.350
(3) Non-Current Liabilities
(a) long-term borrowings	1217.099	2167.728
(b) Deferred tax liabilities (Net)	285.142	266.676
(c) Other long term liabilities	43.881	39.748
(d) long-term provisions	1.555	8.375
Total Non-current Liabilities (3)	1547.677	2482.527
(4) Current Liabilities
(a) Short term borrowings	2496.121	2677.899
(b) Trade payables	1634.619	1779.438
(c) Other current liabilities	1377.165	1418.968
(d) Short-term provisions	1.109	1.161
Total Current Liabilities (4)	5509.014	5877.466
TOTAL	15788.636	15935.343
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7688.505	7232.634
(ii) Intangible Assets	92.862	121.006
(iii) Capital work-in-progress	96.585	848.136
(iv) Intangible assets under development	94.468	71.821
(b) Non-current Investments	5.853	5.853
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	157.739	196.638
Total Non-Current Assets	8136.012	8476.088
(2) Current assets
(a) Current investments	285.270	0.000
(b) Inventories	2416.807	3125.774
(c) Trade receivables	3309.102	3269.337
(d) Cash and cash equivalents	101.947	110.231
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	1539.498	953.913
Total Current Assets	7652.624	7459.255
TOTAL	15788.636	15935.343

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	15462.767	14530.159
	Other Income	124.173	254.666
	TOTAL	15586.940	14784.825
Less	EXPENSES
	Cost of Materials Consumed	7000.971	6865.031
	Purchases of Stock-in-Trade	292.909	504.921
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	645.767	(299.958)
	Employees benefits expense	647.936	579.018
	Other expenses	2754.113	3064.643
	Excise Duty on Sales	1233.399	1208.429
	Exceptional Items	38.106	0.000
	TOTAL	12613.201	11922.084
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2973.739	2862.741
Less	FINANCIAL EXPENSES	508.883	631.066
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2464.856	2231.675
Less/ Add	DEPRECIATION/ AMORTISATION	907.237	767.600
	PROFIT/ (LOSS) BEFORE TAX	1557.619	1464.075
Less	TAX	395.524	351.237
	PROFIT/ (LOSS) AFTER TAX	1162.095	1112.838
	Other Comprehensive Income	3177.855	2947.777
	Items that will not be reclassified to Profit or Loss Reasurement of post-employment benefit obligation	(5.167)	0.308
	Income tax related to items that will not be reclassified to Profit or Loss	1.788	(0.107)
	Total Comprehensive Income	()3.379	0.201
	Total Comprehensive Income For The Year	1158.716	1113.039
	Profit Attributable to:
	Owners of the Company	877.038	825.032
	Non-Controlling Interests	285.057	287.806
	Other Comprehensive Income Attributable to:
	Owners of the Company	(2.774)	0.316
	Non-Controlling Interests	(0.605)	(0.115)
	Total Comprehensive Income Attributable to:
	Owners of the Company	874.264	825.348
	Non-Controlling Interests	284.452	287.691
	Earnings / (Loss) Per Share (INR)	3.45	3.24

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

BACKGROUND

Subject is a public company limited by shares domiciled in India, incorporated under the provisions of Companies Act, 1956. Its shares are listed on National Stock Exchange of India Limited and BSE Limited. Its registered office is situated at Plot no 184 Phase II GIDC, Vatva Ahmedabad- 382 445, Gujarat India. The Company is engaged in manufacturing and selling of Pigment and Agrochemicals products.

OVERVIEW OF COMPANY’S OPERATING RESULTS:-

Sales:-

The Company is in the business of manufacturing of Pigments and Agrochemicals.

The Sales increased by INR 827.136 Million (8.80%) i.e. from INR 9402.963 Million in FY 2016 to INR 10230.100 Million in FY 2017.

The Sales of Pigment Division increased by INR 454.373 Million (9.69%) i.e. from INR 4688.432 Million in FY 2016 to INR 5142.805 Million in FY 2017.

The Sales of Agrochemical Division has increased by INR 467.950 Million (10.98%) i.e. from INR 4261.953 Million in FY 2016 to INR 4729.903 Million in FY 2017.

1) DOMESTIC SALES:-

The Domestic Sales increased by INR 809.207 Million (31.68%) i.e. from INR 2554.345 Million in FY 2016 to INR 3363.552 Million in FY 2017.

The Domestic Sales of Pigment Division increased by INR 354.579 Million (29.40%) i.e. from INR 1205.867 Million in FY 2016 to INR 1560.446 Million in FY 2017.

The Domestic Sales of Agro Division increased by INR 454.180 Million (33.75%) i.e. from INR 1345.774 Million in FY 2016 to INR 1799.954 Million in FY 2017.

2) EXPORT SALES:-

The Export Sales increased by INR 17.930 Million (0.26%) i.e. from INR 6848.618 Million in FY 2016 to INR 6866.548 Million in FY 2017.

The Export Sales of Pigment Division increased by INR 99.794 Million (2.87%) i.e. from INR 3482.566 Million in FY 2016 to INR 3582.360 Million in FY 2017.

The Export Sales of Agro Division increased by INR 13.770 Million (0.47%) i.e. from INR 29161.78 Lakhs in FY 2016 to INR 2929.948 Million in FY 2017. Export Sales related to trading activity decreased by INR 95.639 Million.

3) OTHER INCOME:-

Other income decreased by INR 130.496 Million mainly due to decrease in exchange rate difference.

4) PROFITABILITY:-

Profit Before Tax increased by INR 158.015 Million i.e. by (31.81%) while Profit after Tax increased by INR 52.353 Million (14.43%).

MANAGEMENT DISCUSSION AND ANALYSIS

The Financial Year 2017 was another year of steady profitable growth for Meghmani Organics with 7% growth in revenue and EBITDA margin maintained at 21%. This was despite the setback caused by the fire at the Company’s Beta Blue plant during the year. The INR 6.5-bn mega capacity expansion done over the past 5 years across their businesses, i.e. Pigments, Agrochemicals and Basic Chemicals, has put the Company in good stead. The Company has developed a growing basket of higher-valueadded and high-margin products, along with an extensive pan-India and global presence. Meghmani is now present in 75 countries with over 400 clients.

During the year, the Company witnessed continued growth in the Pigments and Agrochemicals businesses. Meghmani Organics is among the top 3 players in the world in Blue Pigment, with an increased market share of 8%. Following capacity expansion, the Company has increased its focus on the domestic pigments market. The Company’s focus on building its branded agro formulations business has resulted in an expanded distribution network consisting of 2807 stockists, agents, distributors, and dealers, compared to 2370 in FY16. The Caustic Potash plant which began operations at the beginning of the year ramped up slowly due to technical issues, which have now been fully sorted out. So, the Company will now be able to quickly ramp up the plant to optimum utilisation. Meghmani’s Return on Capital Employed (ROCE) continues to increase as the Company has consistently been reducing debt as per plan.

The year also saw the Company embark on its next landmark capex plan involving INR 5.4 bn of investments over the next 2-3 years. The project will be a major growth-driver, going ahead. It involves 3 projects. The first is the Company’s CMS Project of 40,000 MTPA which will result in captive consumption of 41,000 MTPA of Chlorine (Co-product of the Company’s Caustic Soda production), which currently has a negative realisation. So, this project will help the Company achieve better realisation in the Caustic Chlorine segment. The final product of this project is MDC (which mainly used by Pharma and Agro Chemical Industries and India is currently a net importer of the same), Chloroform and Carbon Tetra Chloride (CTC). This is expected to be commissioned by March 2018 and add INR 1.4 bn of revenue in the full year of operations. The Company’s second project involves 50% capacity expansion of the Caustic Soda Plant to 2,40,000 MTPA using Zero Gap Membrane cell technology and increase the Company’s Captive Power Plant capacity to 90MW from 60 MW now. Meghmani’s third project is to set up a Hydrogen Peroxide (50%) project of 25,000 MTPA, which also used in Pharma and Agro Chemical Industries. The expansion of the Caustic Chlorine facility along with Power Plant and Hydrogen Peroxide projects will involve investments to the tune of INR 4 bn. These are expected to be commissioned by June 2019 and add INR 3 bn in revenue in the full year of operations. During the year, the Company continued its efforts to increase production and capacity utilisation across segments. In fact, volumes have registered good growth in Pigments and Agrochemicals. The synchronisation process of the Caustic Potash facility had some impact on the Caustic Chlorine facility along with Power Plant utilisation and production.

FY18 looks to be more promising with all segments expected to progress: Agrochemicals with better industry demand driven by better monsoon in FY17 and expected good monsoon in FY18 along with the proposed key reforms and increased funds in Budget FY17, Pigments with increasing share of higher-value-added products as the Beta Blue plant is fully ramped up, and Basic Chemicals with increased utilisation of Caustic Potash.

FY17 witnesses continued momentum of profitable growth

The Company delivered revenue growth of 7% in FY17 on the back of good growth in Pigments and Agrochemicals, which increased 10% and 11%, respectively, despite challenges, such as subdued exports and a fire at the Beta Blue plant, pricing pressure in Agrochemicals due to channel inventory following 2 years of drought. Revenue from Basic Chemicals was stable on account of lower utilisation due to synchronisation of the Caustic Potash plant.

EBITDA for the period increased 11% to INR 2,888.000 Million on the back of improved operational performance, higher production and increased share of value-added products. This resulted in expansion of 77 bps in EBITDA margin to 20.6%. PAT grew by 6% to INR 878.000 Million on the back of improved financial leverage due to debt reduction, taking the PAT margin to 6.3%. Exceptional loss, resulting from the loss due to fire at the Beta Blue plant, was INR 38 Million.

The Company has reduced its long-term debt by INR 1,171.000 Million this year and plans to further pay off INR 910.000 Million in FY18. The interest coverage ratio improved to 3.9X from 2.9X in FY16, thanks to better performance and lower cost of debt. The Company’s Debt Equity ratio too was further reduced to 0.6X in FY17 from 0.9X in FY16.

Business Segments

I. Pigments

(a) Industry Opportunity

Global Pigments market is expected to reach ~$32 bn by 2023

The size of the global Pigments market in 2016 was $24 bn and is expected to rise to $32 bn by 2023, growing at a CAGR of 3.8%. Asia Pacific is expected to make up the lion’s share of the global geographical market with approximately 47% share in 2023.

The global paints and coatings market is projected to grow at a CAGR of 5.5% during the forecast period of 2017-2022. This is expected to give a strong boost to the global pigments market. Per capita paint consumption in emerging countries is less than in the developed countries; economic development in the Association of Southeast Asian Nations (ASEAN), China, India, and the Gulf Cooperation Council (GCC) is expected to improve the trend.

Pigments are a critical element in the plastics industry because of their aesthetic and colouring effects, superior compatibility, moisture and heat resistance, and capability to increase stability in plastics. Being a major consumer of pigments, the growing plastics industry could offer some great opportunities for players in the global pigments market.

Organic Pigment: A key constituent of growth in the industry

The global organic pigments market is expected to grow at a CAGR of more than 3% between 2017 and 2021. In terms of geography, Asia Pacific (APAC) is the largest and dominating region in the global market due to the presence of several manufacturers who offer pigments at lower costs in comparison to other regions. APAC is anticipated to lead the market in terms of consumption over the next four years due to increase in infrastructure activities that require paints and coatings with functional benefits. Upsurge in development of textile and plastic industries and expansion of the middle class in Asia-Pacific are other factors which are expected to boost the demand for organic pigments in the region.

The printing inks segment was the largest application segment of organic pigments in 2016 and will continue its dominance during the forecast period.

Indian Dye and Pigment Industry: Ready for the future

The highly fragmented Indian colorant industry, valued at $6.8 bn, exports nearly 75% of its production. Exports have grown in double digits over the last few years.

The Indian dyestuffs and pigments industry has transformed from being import-dependent to export-driven. To support the growth of the industry, developed countries are now focusing on sourcing dyestuffs and pigments from cost-effective Asian markets, owing to stringent measures taken on environmental issues back home.

The decorative paints market is expected to witness a CAGR of 12.7% and the industrial paints market a CAGR of 9.5% (2015-2020), according to the Indian Paint Association (IPA). The packaging Industry is expected to grow at 18% per annum till 2020, since the per capita packaging consumption in India is low at 4.3 kg, compared to developed countries like Germany and Taiwan where it is 42 kg and 19 kg, respectively.

(b) Business Overview

Meghmani Organics is one of the largest manufacturers of Phthalocyanine-based pigments with a global market share of 8% in volume terms. The Company has vertically integrated facilities manufacturing CPC Blue (an upstream product which too is sold to other pigment manufacturers) and end products — Pigment Green and Pigment Blue. These pigment products are used in multiple applications, including paints, plastics and printing inks.

The Company’s pigments business enjoys strong global presence with exports accounting for ~68% of net sales.

Customers comprise mainly MNCs, such as Sun-DIC, Flint Group, Akzo Nobel, DuPont, and PPG Industries. The Company’s relationship with its clients is sticky, with 90% business arising from repeat customers. The Company has a global distribution network of 70 overseas distributors. Its direct presence (with subsidiaries in the US, Europe, Indonesia, and Dubai) helps it to maintain a front-end presence and the ability to work closely with end - user customers.

The Company also has warehouses in Belgium, Turkey, Russia, USA, and Uruguay.

Meghmani Organics has three dedicated manufacturing facilities to manufacture Pigment products. These are located at:

• GIDC Vatva, Ahmedabad, (2,940 MTPA) where Pigment Green 7 products are manufactured

• GIDC Panoli, near Ankleshwar, (17,400 MTPA), where CPC Blue, Alfa and Beta Blue, Pigment Blue 15 products are manufactured

• Dahej SEZ Limited, (10,800 MTPA) where CPC Blue, Alfa and Beta Blue are manufactured

FY17 Performance and Outlook

The pigments business delivered strong growth in FY17, with net sales growth of 10%, to INR 5143.000 Million.

This was driven by robust performance in both domestic and export markets which grew at 29% and 12%, respectively. Volumes increased by 7% at 14,462 MT, driven by higher production and higher realisation. EBITDA margin increased to 17% from 13% in FY16, due to higher production, higher realisation, lower fuel cost and lower other expenses. Utilisation levels have increased to 66% in FY17 from 63% in FY16.

4. Outlook and Strategy:

Going forward, the Company expects the share of value-added products to increase, led by its fully ramped up Beta Blue plant. The Company is also focusing on the high-margin paints and plastics market by improving the product-mix and developing specialty pigment products for international markets to maintain the growth in exports. The Company continues to focus on increasing its domestic presence, given the significant market opportunities. Meghmani Organics, being a leader in the Indian pigments market, is well placed to monetise this opportunity.

To summarise, Pigments is expected to deliver continued growth with improved profitability on account of increased share of value-added products, higher utilisation and good opportunities in the export and domestic markets.

INDEX OF CHARGE:

SNO	SRN	CHARGE ID	CHARGE HOLDER NAME	DATE OF CREATION	DATE OF MODIFICATION	DATE OF SATISFACTION	AMOUNT	ADDRESS
1	G61613048	100133368	ICICI BANK LIMITED	26/09/2017	-	-	1250000000.0	9TH FLOOR, JMC HOUSE,OPP PARIMAL GARDEN, AMBAWADIAHMEDABADGJ380006IN
2	G07635527	100039048	HDFC BANK LIMITED	16/06/2016	-	-	300000000.0	NEAR MITHAKALI CROSS ROAD,NAVRANGPURAAHMEDABADGJ380009IN
3	G05381447	100031981	STATE BANK OF INDIA	02/06/2016	-	-	1067500000.0	CORPORATE ACCOUNTS GROUP BRANCH58, SHRIMALI SOCIETY, NAVRANGPURAAHMEDABADGJ380009IN
4	C73805061	10609034	STATE BANK OF INDIA	30/11/2015	-	-	1067500000.0	CORPORATE ACCOUNTS GROUP BRANCH58, SHRIMALI SOCIETY, NAVRANGPURAAHMEDABADGJ380009IN
5	C37316064	10537296	HDFC BANK LIMITED	11/12/2014	-	-	300000000.0	NEAR MITHAKALI CROSS ROAD,NAVRANGPURAAHMEDABADGJ380009IN
6	Z00041634	80011663	SBI CB ICICI BANK LTD	19/04/2004	-	-	794500000.0	NAVJIVANAHMEDABADGJ380009IN
7	G57030405	80010560	SBICAP TRUSTEE COMPANY LIMITED	19/04/2004	20/09/2017	-	4000000000.0	202, MAKER TOWER 'E',CUFEE PARDEMUMBAIMH400005IN
8	Z00041636	80011664	SBI CB ICICI BANK LTD	09/10/2003	-	-	794500000.0	NAVJIVANAHMEDABADGJ380009IN
9	G57031882	80010561	SBICAP TRUSTEE COMPANY LIMITED	09/10/2003	20/09/2017	-	4000000000.0	202, MAKER TOWER 'E',CUFEE PARDEMUMBAIMH400005IN
10	C80605025	10501919	ICICI BANK LIMITED	22/05/2014	-	19/02/2016	750000000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390015IN

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2017 INR In Million	31.03.2016 INR In Million
In respect of Bank Guarantee	104.366	133.060
In respect of Letter of Credit	216.142	155.831
In respect of Corporate Guarantee	250.000	533.950

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2017

(INR in million)

PARTICULARS				Quarter Ended 31.12.2017	Quarter Ended 30.09.2017	Nine Year Ended 31.12.2017
				(Unaudited)	(Unaudited)	(Unaudited)
Income from Operations
Net Sales/Income from Operations (net of excise duty)				3073.056	3434.493	9802.728
Other Income				6.954	79.549	134.007
Total Income from Operations (Net)				3080.010	3514.042	9936.735
Expenses
		Cost of Materials consumed		1414.043	1991.231	5175.943
		Purchase of stock in-trade		65.150	64.750	178.512
		Changes in inventories of finished goods, work-in-progress and stock-in-trade		307.228	(54.127)	141.201
		Excise duty on sales		0.000	0.000	224.710
		Employee benefit expenses		155.350	143.925	418.593
		Finance Costs		80.452	75.321	235.240
		Depreciation and amortization expense		112.540	103.824	316.257
		Other expenses		656.923	739.151	2184.302
Total Expenses				2791.686	3064.075	8874.758
			Profit /(Loss) before exceptional items and tax	288.324	449.967	1061.977
Exceptional items				0.000	12.330	12.330
	Profit /(Loss) before tax			288.324	437.637	1049.647
Tax Expense
Current tax				61.500	118.500	297.500
Net deferred tax expenses				55.476	31.158	101.362
	Profit /(Loss) after tax			171.348	287.979	650.785
Other Comprehensive Income
Item that will not be reclassified to profit or loss				(0.751)	(0.752)	(2.254)
Income tax relating to items that will not be reclassified to profit or loss				0.260	0.260	0.780
Total Other Comprehensive Income for the year				170.857	287.487	649.311
Paid-up equity share capital (Face value INR 1/- per share)				254.314	254.314	254.314
Earnings per share (EPS) (INR)(before extraordinary items)
Basic				0.67	1.13	2.56
Diluted				0.67	1.13	2.56

SEGMENT REVENUE, RESULTS, SEGMENT ASSETS AND SEGMENT LIABILITIES

(INR in Million)

	Particulars	Quarter Ended 31.12.2017	Quarter Ended 30.09.2017	Nine Year Ended 31.12.2017
		(Unaudited)	(Unaudited)	(Unaudited)
1.	Segment revenue
	Pigment	1524.893	1459.229	4491.940
	Agrochemicals	1547.705	1949.661	5226.482
	Others/unallocated	0.458	25.603	84.306
	Total	3073.056	3434.493	9802.728
	Less Inter-segment sales	0.000	0.000	0.000
	Net sales income from operations	3073.056	3434.493	9802.728
2.	Segment results
	Pigment	146.350	189.011	528.743
	Agrochemicals	207.278	358.768	782.972
	Others/unallocated	0.526	0.875	(10.049)
	Total	354.154	548.654	1301.666
	Less-Finance cost	80.452	75.321	235.240
	Other un-allocable expenditure net un-allocable income	(14.622)	35.696	16.779
	Total profit before tax	288.324	437.637	1049.647
3.	Segment assets
	Pigment	6083.718	5731.508	5867.736
	Agrochemicals	5798.814	6497.172	5934.628
	Others/unallocated	250.1804	1418.121	202.468
	Total segment assets	14384.336	13646.801	12004.832
4.	Segment liabilities
	Pigment	2817.696	2703.005	2541.730
	Agrochemicals	3065.825	3713.884	2851.330
	Others/unallocated	1644.838	544.792	410.019
	Total Segment Liabilities	7528.359	6961.681	5803.079

FIXED ASSETS:

Tangible Assets

• Freehold Land
• Leasehold Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer

Intangible Assets

· Software Licences

· Product Licences

· Usage Rights

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	INR
US Dollar	1	INR 65.05
UK Pound	1	INR 89.70
Euro	1	INR 80.03

INFORMATION DETAILS

Information Gathered by :	SAV
Analysis Done by :	PSD
Report Prepared by :	KVT

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.