MIRA INFORM REPORT

Report Date :

12^th May, 2006.

IDENTIFICATION DETAILS

Name :	ERA CONSTRUCTIONS INDIA LIMITED
Registered Office :	370-371/2, Sahi Hospital Road, Jangpura, Bhogal, New Delhi – 110 014, India.
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	08.09.1990
Com. Reg. No.:	55-41350
TAN No.: (Tax Deduction & Collection Account No.)	DELE00986G
PAN No.: (Permanent Account No.)	AAACE1268K
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on the Stock exchanges.
Line of Business :	The company is engaged in executing industrial projects including civil and structural work. Electrification, plumbing, etc The construction industry covers various sector like residential buildings, industrial complexes, developmental projects etc.

RATING & COMMENTS

MIRA’s Rating :

A

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

Maximum Credit Limit :	USD 1250000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company in the Constrution Industry. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	370-371/2, Sahi Hospital Road, Jangpura, Bhogal, New Delhi – 110 014, India.
Tel. No.:	91-11-24378011-20
Fax No.:	91-11-24378784/ 24373707
Email:	era@eraconstructions.com
Website:	http://www.reaconstructions.com

DIRECTORS

Name :	Mr. H. S. Bharana
Designation :	Chairman
Name :	Mr. B.K. VINAYAK
Designation :	Managing Director
Name :	Mr. P.P. MAINRA
Designation :	Executive Director
Name :	Mr. A. K. Mehta
Designation :	Director
Name :	Mr. Arvind Pande
Designation :	Director
Name :	Mr. A. K. Sheth
Designation :	Director
Name :	Mr. B. B. Kumar
Designation :	Director
Name :	Mr. J. L. Khushu
Designation :	Director
Name :	Mr. S. D. Shrma
Designation :	Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters & Promoters' Group	2,635,192	40.44%
NRIs / OCBs / Flls	130,424	2.00%
Private corporate bodies	685,198	10.52%
Indian Public	2,898,640	44.48%
Other	166,966	2.56%
Total:	6,516,420	100%

BUSINESS DETAILS

Line of Business :

The company is engaged in executing industrial projects including civil and structural work, electrification, plumbing, etc The construction industry covers various sectors like residential buildings, industrial complexes, developmental projects, etc.

GENERAL INFORMATION

Suppliers :

v Solid Shutter Industries

v Veer Sain Jain & Company

v Cico Technologies Limited

v Karshni Aliminium Company Private Limited

v Shree Mahavir Enterprises

v Pioneer Plastic India Limited

v U.P. Concrete Product Private Limited

v Ganpati Steel

v B.S. Bhatta Company

v Ganpati Stone Crushers

v S.J. Bricks

v Bansal Stone Crusher

v Krishna Stone Crusher

v Shri Shirdi Sai Stone Crusher

v Choudhari Bricks Klin

v Allied Glass Private Limited

v Deshwal Bricks

v Sri Sai Stone Crusher.

Customers :

v National Thermal Power Corporation

v National Hydroelectric Power Corporation

v Power Grid Corporation

v Airport Authority of India

v IRCON International Limited

v Indian Oil Corporation

v Indian Railway Welfare Organization

v Indian Petro Chemicals Corporation

v Tehri Hydro Development Corporation

v Delhi Metro Rail Corporation

v Sun Pharma Group

v D.C.M Group

v Bhartia Group

v Oswal Group

v Khaitan Group

v Bhilwara Group

v Trident Group

v Indo Rama Group

v J.B.M. Group

v S.R.S. Commercial Company Limited

v CPWD

v PWD, Delhi

v DSIDC

v Panacea Biotec Limited

v Alps Industries Limited

v Cadila Pharmaceuticals Limited

Bankers :

v Union Bank of India, Asaf A I Road, New Delhi

v Bank of Baroda, Nehru Place, New Delhi

v Andhra Bank, Cannaught Circus, New Delhi

Facilities :

Secured Loan	Amount (in Millions)
Working capital facilities from banks	171.175
Term loan from union bank of India	0.801
Equipment advances from clients	15.547
Mobilisation advances from clients	42.715
Hire purchase finance	18.144
Advances against insurance policies	9.545
Assistance under receivable finance from SIDBI	41.792
Unsecured Loan
Inter Corporate Deposits	20.413
Fixed Deposits	52.635
Deferred liabilities	0.000

NOTE:

1 Term Loan from Union Bank of India is secured by way of hypothecation of movable and immovable fixed assets of the Company, created out of Term Loan.

2 Working capital facilities from Banks (Union Bank of India, Bank of Baroda, and Andhra Bank) are secured by way of hypothecation of stock and book-debts both present and future of the Company through pari passu charge.

3 Working capital facilities from banks are further secured by way of first pari passu charge on movable and immovable fixed assets of the company, both present and future.

4 Term Loan and Working Capital facilities from Banks are further secured by equitable mortgage of certain assets of chairman/their associates/ relatives and further by personal guarantee of chairman and relatives.

5 Advances from clients are secured against Bank Guarantees.

6 Hire purchase finance are secured by way of hypothecation of respective assets.

7 Assistance under receivable finance from SIDBI is secured by way of second charge on movable and immovable fixed assets of the company and first charge on residential property located at L-733, Shastri Nagar, Meerut, (U.P) belonging to chairman and relatives. Facilities Trom SIDBI is further secured by personal guarantee of chairman and relatives.

8 Advances from Life Insurance Corporation of India are secured against insurance policies.

Banking Relations :	Satisfactory
Auditors :	P. C. Bindal & Company
Qualification:	Charted Accountant
Associates:	v Era Financial Services (India) Limited v WTD Era (India) Limited v Era Exports (India) Limited v Era Infrastructure (India) Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
16000000	Equity Shares	Rs. 10/- each	Rs. 160.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6516420	Equity Shares	Rs. 10/- each	Rs. 65.164 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		65.164	43.442
2] Share Application Money		31.900	0.000
3] Reserves & Surplus		227.098	201.766
4] (Accumulated Losses)		0.000	0.000
NETWORTH		324.162	245.208
LOAN FUNDS
1] Secured Loans		299.722	121.084
2] Unsecured Loans		73.048	58.165
TOTAL BORROWING		372.770	179.249
DEFERRED TAX LIABILITIES		69.080	63.744
TOTAL		766.012	488.201
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		372.503	274.552
Capital work-in-progress		0.000	0.000
INVESTMENT		5.256	5.256
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	192.222	121.419
	Sundry Debtors	404.587	249.936
	Cash & Bank Balances	102.702	77.832
	Other Current Assets	1.275	0.486
	Loans & Advances	109.263	63.911
Total Current Assets		810.049	513.584
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	397.825	289.066
	Provisions	26.247	16.506
Total Current Liabilities		424.072	305.572
Net Current Assets		385.977	208.012
MISCELLANEOUS EXPENSES		2.276	0.381
TOTAL		766.012	488.201

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	1574.707	1103.379
Profit/(Loss) Before Tax	74.283	42.450
Provision for Taxation
Profit/(Loss) After Tax	54.495	28.860
Import Value	27.315	2.809
Total Expenditure	1500.424	1060.928

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	31.03.2006 (Full year)
Sales Turnover	3107.600
Other Income	21.600
Total Income	3129.200
Total Expenditure	2618.800
Operating Profit	510.400
Interest	101.400
Gross Profit	409.000
Depreciation	34.700
Tax	60.500
Reported PAT	264.000

200506 Quarter 1 --------------- Notes Expenditure includes Direct Construction Expenses Rs 441.454 million Staff Cost Rs 21.771 million Other expenditure Rs 10.778 million Fringe Benefit Tax Rs 0.168 million Tax Includes Provision for Current Tax Rs 6.070 million Deferred Tax Rs 1.570 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 16 Complaints disposed off during the quarter 16 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee of Directors and approved by the Board of Directors at their meeting held on July 18, 2005. 2. Segment Reporting as defined in Accounting Standard (AS-17) is not applicable as the Company is operating in one segment only i.e. Construction Activity. 3. The quarterly results for the quarter ended June 30, 2005 have been subject to limited review by the auditors. 4. EPS has been calculated on the basis of enhanced equity pursuant to allotment of Bonus Shares. 5. Previous period/year figures have been regrouped/recasted wherever necessary.

200509 Quarter 2 --------------- Notes: Expenditure includes Direct Construction Expenses Rs 570.787 million Staff Cost Rs 24.625 million Other expenditure Rs 21.392 million Tax Includes Provision for Current Tax Rs 10.858 million Deferred Tax Rs 5.837 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 237 Complaints disposed off during the quarter 236 Complaints unresolved at the end of the quarter 01 1. The above results were reviewed by the Audit Committee and Approved by the Board of Directors at their meeting held on October 31, 2005. 2. Segment Reporting as defined in Accounting Standard (AS-17) is not applicable as the Company is operating in one segment only i.e. Construction Activity. 3. EPS has been calculated on the basis of enhanced equity pursuant to allotment of equity shares in public issue. 4. The Company had raised Rs 492.043 million by way of public issue of equity shares during June 2005. The objects of the issue interalia were to augment long term working capital requirement, Acquire plant & machineries, utilize funds for general corporate purposes and meet the expenses of the issue in terms of clause 43 of the listing agreement the information required therein is furnished below Sr.no. Particulars of utilization of fund as on September 2005 Actual utilization of Funds Projected Utilization of Funds A. Long term working capital 343.858 320.978 B. Plant & Machineries 61.499 61.062 C Public issue expenses 29.464 28.000 D General Corporate purposes 57.222 82.003 Total 492.043 492.043 5. Previous period/year figures have been regrouped/recasted wherever necessary.

200512 Quarter 3 --------------- Notes Expenditure includes Direct Construction Expenses Rs 656.573 million Staff Cost Rs 28.205 million Other expenditure Rs 19.229 million Tax Includes Provision for Current Tax Rs 10.337 million Deferred Tax Rs 14.998 million Fringe Benefit Tax Rs 0.513 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter 01 Complaints Received during the quarter 94 Complaints disposed off during the quarter 95 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 24, 2006 and have been subject to limited review by the auditors of the Company. 2. Segment Reporting as defined in Accounting Standard (AS-17) is not applicable as the Company is operating in one segment only i.e. Construction Activity. 3. Basic EPS has been calculated on the basis of enhanced equity pursuant to allotment of equity shares in public issue. 4. Diluted EPS has been calculated on the basis of enhanced equity pursuant to allotment of Preferential Warrant issue. 5. Pursuant to the provisions of Section 94(1)(a) of the Companies Act 1956, the Authorized Share Capital of the Company has been Increased from Rs 160 million divided into 1,60,00,000 Equity Shares of Rs 10/- each to Rs 400 million divided into 4,00,00,000 Equity Shares of Rs 10/- each. 6. Pursuant to the special resolution passed in Extra Ordinary General Meeting held on December 16, 2005 the Company has allotted 44,90,000 warrants on preferential basis as per SEBI Guidelines. 7. As the funds raised through preferential allotment of warrants could not be utilized until December 31, 2005, information as required under Clause 43 of the listing agreement will be given in the next quarter. 8. The following changes have taken in the Board of Directors of the Company since last Quarter: Mr. B K Vinayak, Managing Director of the Company resigned from Directorship of the Company. Mr. H S Bharana re-designated as Chairman and Managing Director of the Company. Mr. A K Seth, Director of the Company resigned from Directorship of the Company. Mr. J L Khushu appointed as Wholetime Director of the Company. 9. The Company's current order book stands at approximately Rs 8073 million with projects from diverse field. The further break up of order book position is as under: i. Infrastructure (Power, Road, Railways and others) Projects - 57.89% ii. Industrial Projects - 13.42%. iii. Housing, institutional & other Projects - 28.69%. 10. The Company has partnered with other infrastructure players to jointly explore Build-operate-Transfer (BOT) opportunities in road and other infrastructure segments. 11. Previous period / year figures have been regrouped / recasted wherever necessary.

200603 Quarter 4 --------------- Notes: 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 29.042006. 2. Segment Reporting as defined in Accounting Standard (AS)-17 is not applicable as the Company is Operating in one segment only i,e. Constuction Activity. 3. Disclosure about Investor Complaints: As per information provided by the erstwhile RTAM/s Aarthi Consultants Pvt. Ltd., the status of complaints is as under Complaint at the beginning of the Quarter Nil Received During the Quarter 56 Disposed off during the Quarter 56 Unresolved as on 31.03.2006 Nil 4. The Shares of the Company have been listed and admitted to trading on National Stock Exchange of India Limited w.e.f March 29,2006. 5. The Company has issued and allotted 5263200 Equity Shares underlying 5263200 GDRs on 27th February, 2006 and has also obtained listing permission from Luxembourg Stock Exchange, U.K. vide their Certificate of Listing dated February 28, 2006 and the 5263200 Global Depository Receipts have been officially listed on the Euro MTF Market. Further the Company has also obtained listing and trading permission from Bombay Stock Exchange Limited and National Stock Exchange of India Limited. 6. Inforrmation underClause 43 of the listing agreement; a) Utilization of GDR proceeds aggregating US $ 30000,240 (INR 13344.11 Lacs approx). Object as mentioned in listing circular Amt.Utilized(Rs.in Lacs) Purchase of Plant and Machinery 850.00 Long Term Working Capital 4461.39 Other investments 800.00 Gdr Expenses 452.54 Exchange Rate Flutuations 21.95 Pending utilization in Banks 6758.23 Total 13344.11 b) Utilization of proceeds of Rs1212.30lacs(approx.) from preferential issue of warrants: Objects as mentioned in the Explanatory Statement Amt.Utilized(Rs.in Lacs) Working Capital 312.30 Capital Expenditure 596.67 General Corporate Purposes 300.00 Pending Utilization in Bank 3.33 Total 1212.30 7. W.e.f 15.03.2006 M/s Era Metal Building Systems Limited has become subsidiary of the Company. 8. The Company has promoted 100% EOU for export of structural and allied Designs etc. 9. Previous Period/year figures have been regrouped/recasted wherever necessary. Based on Exchange Rate as at February 27,2006.

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004
Debt-Equity Ratio	1.03	0.67
Long Term Debt-Equity Ratio	0.50	0.33
Current Ratio	1.12	1.10
TURNOVER RATIOS
Fixed Assets	3.70	3.07
Inventory	9.96	10.15
Debtors	4.77	4.83
Interest Cover Ratio	2.31	2.18
Operating Profit Margin(%)	9.77	7.99
Profit Before Interest And Tax Margin(%)	8.38	6.32
Cash Profit Margin(%)	4.86	4.00
Adjusted Net Profit Margin(%)	3.48	2.33
Return On Capital Employed(%)	24.11	17.82
Return On Net Worth(%)	20.24	10.93

STOCK PRICES

Face Value	Rs.10/-
High	Rs.520.00
Low	Rs.492.00

s

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS:

Plant & Machinery, Tractors /Trucks, Furniture & Fixtures, Office Equipments, Vehicle, Data Processing Machine, Capital Work in Progress etc.

FINANCIAL PERFORMANCE

During the year 2004-05, the company has recorded turnover of Rs. 15,62.402 Millions as compared to Rs. 1094.658 Millions achieved during the pievious financial year registering a growth of 42.7%. During the year under review the company registered profit before tax of Rs. 74.283 Millions as against Rs. 42.450 Millions in previous year registering a growth of almost 75%. Profit after tax increased to Rs. 54.495 Millions from Rs. 28.860 Millions in the previous year.

FUTURE PROSPECTS

At present the Company has contracts in hand at an estimated value of Rs. 5500.000 Millions, including the projects from NTPC, Power Grid Corporation, Delhi metro Rail Corporation, Panacea Biotec Ltd., Airports Authority of India, Alps Industries Limited, Cadila Pharmaceuticals Limited, Paras Pharmaceuticals Limited, Neel Metal Products Limited. Your Management is hopeful of sustaining the growth during the current financial year.

MATERIAL CHANGES

There are no material changes and commitments, affecting the financial position of the company between the end of the financial year of the company and the date of Directors' Report.

BONUS ISSUE

During the year, your company has declared issue of Bonus Shares in the ratio of one equity share for every two equity shares held on the record date. The allotment of bonus shares was made in the meeting of the Board of Directors held on 30" November 2004. These shares have been listed on the Stock Exchanges.

MANAGEMENT DISCUSSION AND ANALYSIS

1. INTRODUCTION

The year under review has proved to be a milestone on the success path for the company. During the year, the Company has recorded an increase of 42.7% in me told turnover and an impressive increase of 88.8% in the net profit of me company over the previous year.

During the year 2005, the Company bagged some prestigious projects like Construction of Cargo Complex at Kolkota Airport for Rs. 293.7 Millions. and Sipat Super Thermal Power Project of NTPC for Rs. 785.7 Millions

2. INDUSTRY STRUCTURE & DEVELOPMENT

Construction activity is an integral part of a country's infrastructure and industrial development. It includes hospitals, schools, townships, offices, houses and other buildings; urban infrastructure (including water supply, sewerage, drainage); highways, roads, ports, railways, airports; power systems; irrigation and agriculture systems; telecommunications etc. Covering as it does such a wide spectrum, construction becomes the basic input for socio-economic development.

Besides, the construction industry generates substantial employment and provides a growth impetus to other sectors through backward and forward linkages. The construction sector is the largest employer in the country after the agriculture sector, employing almost 18 million people. This number would be far larger if the numbers employed by industries such as steel and cement are also counted. The sector also recorded the highest growth rate in generation of jobs in the last two decades, doubling its share in total employment.

3. OPPORTUNITY AND THREATS

In the Union Budget 2003, the Government announced 48 new road projects, spanning 10,000 kms. with an estimated outlay of Rs. 400 billion to taken up on Built-Operate-Transfer (BOT) basis. Further, recently the Prime Minister's Committee on infrastructure has given in principle approval for an investment of Rs. 1,70,0000.000 Millions for national highway development projects over the next seven years. Under the programmed, the ongoing phase I (golden quadrilateral) and phase II (North-South-East-West) of the NH projects would not only be completed, but "substantial additional work" would be taken up. The Company intends to grab opportunities in highway/road sector. It has entered into strategic MOUs to enable it to enter into this sector

Power generation is another focus area where substantial investments are likely to follow. The Ministry of Power has set a goal - Mission 2012: Power for All. A comprehensive Blueprint for

Power Sector development has been prepared encompassing an integrated strategy for the sector development with an objective of sufficient power to achieve GDP growth rate of 8%. The Company can look at this opportunity due to its vast experience in construction of Power Projects.

The Government has setup a new organization to undertake the gigantic task of construction of 0.199 Millions married accommodation for three services - Army, Air Forces and Navy. The project is covering most the station in the peace as well as hard areas, where families of services persons are residing. The project is to cost approx Rs. 17,3580.000 Millions and is planned to be completed in a period of 4 Years. The Company has already been pre-qualified for five such projects aggregating around Rs. 12,84.500 Millions Infrastructure growth prospects are highly dependent on government policies.

4. SEGMENT WISE PERFORMANCE

Company operates only in one segment i.e. Construction Industry.

5. OUTLOOK

The Company is engaged into diversified construction activities comprising of construction of runway & integrated cargo complex for airports, power projects, drainage, sewerage & roads under infrastructure, institutional & industrial complexes, multiplexes and residential buildings. The Company is providing its services to various Public Sector Undertakings, Private Sector Business Groups and Central Public Works Department. The Company has also undertaken certain Asian Development Bank aided projects for execution.

The Company looks at future of construction industry with optimism. It derives its optimism from various factors including Government emphasis on creating world-class infrastructure, favourable investment climate leading to industrial growth and booming housing sector.

6. RISK & CONCERNS

The construction industry is highly fragmented, wherein larger number of players is operating in an unorganized sector and only few of them are in organized sector. Therefore, the Company faces competition from large number of players in the industry. Even, the smaller proprietary firms also create competition for the Company.

However, the award of contracts depends on successfully bidding the tenders. The tendering involves two-tier process. Firstly, the prospective bidders have to qualify technical bids. Only after qualifying the technical bid, the prospective bidders can participate in financial bid. This process of pre-qualification in technical bid wards off the Company from unhealthy competition from small players who are unable to qualify technical bid. Further, the key success factor in qualifying the financial bid is cost competitiveness and the Company has been able to sustain in the competition due to its competitive financial strength, technical competency and low overheads.

7. INTERNAL CONTROL SYSTEM

The company has proper and adequate system of internal control to monitor proper recording of transaction according to policies and procedures laid down by the company. The company regularly monitors that all regulatory guidelines are complied with at all levels. To have a better and more effective control, the company has upgraded MIS and has underway a full-fledged ERP system encompassing various critical areas, which has been developed in house.

The Audit Committee constituted by the Board reviews the adequacy of Internal Control System.

AS PER WEBSITE:

Incorporated on 3 Sep.'90, Era Constructions India went public in 1992. It was promoted by H S Bharana, a qualified civil engineer. The company is engaged in executing industrial projects including civil and structural work, electrification, plumbing, etc. It has expanded its operations in this field. The construction industry covers various sectors like residential buildings, industrial complexes, developmental projects, etc. The company has received repeated orders from reputed clients like Gujarat Ambuja, Rajasthan Spinning, Bindal Agro, Indian Glycols, National Dairy Development Board, etc. 

 The company came out with a public issue in Mar.'95 to expand and strengthen its operations. In 1995-96, the company has started undertaking construction of infrastructure projects. The paid up equity capital has enhanced from Rs 19.5 Millions to Rs 34.5 Millions due to the public issue. 

 Company is having comfortable order book position & hopes better growth in the coming years. The total worth of projects in hand till March 2001 was Rs.1303.800 Millions.

ABOUT US:

Era Constructions (India) Limited is an established Public Limited Company, having its registered office at 370-371/2, Sahi Hospital Road, Jangpura, Bhogal, New Delhi- 110 014. The company is listed at Mumbai, Delhi and Ahmedabad Stock Exchanges.

The company was incorporated as Era Constructions (India) Private Limited vide Certificate of Incorporation No. 55-41350 dated September 03, 1990 with Registrar of Companies, NCT of Delhi and Haryana at New Delhi and subsequently converted into a Public Limited Company and the name was changed to Era Constructions (India) Limited vide fresh Certificate of Incorporation dated October 19, 1992. 

The Company is promoted by Mr. H.S. Bharana, a civil engineering professional, having more than two decades experience in Construction Industry.

Era, a medium sized construction Company, is ISO 9001:2000 certified and is engaged in diversified construction activities for airports, power projects, infrastructure, institutional & industrial complexes, multiplexes and residential buildings catering to the PSUs, private sector, CPWD and Asian Development Bank aided projects. The Company has successfully completed more than 50 projects in a span of last fourteen years. The Company has serviced many reputed clients like National Thermal Power Corporation Ltd. (NTPC), Indian Railway Welfare Organization, NBCC, Public Works Department (PWD), Central Public Works Department (CPWD), National Dairy Development Board, NHPC, IRCON International Ltd., Unichem Laboratories Ltd. and Rajasthan Spinning & Weaving Mills Ltd.

The Company is professionally managed through well qualified and experienced personnel in all areas including engineering, finance and administration which, combined with a full fledged ERP and MIS system, has led to an efficient and effective working.

Important Events in the History of the Company

Year	Event
1990	Incorporation in September
1991	Profit in the very first year of Incorporation
1996	Awarded “MA” Rating, which indicates adequate safety, for Fixed Deposit by ICRA
1997	Crossed Annual Turnover of Rs.5000 Lacs
1999	Awarded Talcher Super Thermal Power Project (Unit I & II) by NTPC for Rs.3134 Lacs
2000	ISO 9002 Certification from Det Norske Veritas on 31.10.00
2000	Awarded Talcher Super Thermal Power Project (Unit III & IV) NTPC for Rs.2983 Lacs
2001	Awarded Ramagundam Super Thermal Power Project by NTPC for Rs.2897 Lacs
2003	ISO 9001:2000 certification from NQAQSR on 12.12.03
2003	Awarded Vindhyachal Super Thermal Power Project by NTPC for Rs.4306 Lacs
2003	Awarded Kahalgaon Super Thermal Power Project by NTPC for Rs.5169 Lacs
2003	Crossed Annual Turnover of Rs.10000 Lacs
2004	Awarded Bawana project by Delhi State Industrial Development Corporation Ltd. for Rs.4539 Lacs
2004	Awarded Sipat Super Thermal Power Project by NTPC for Rs.7857 Lacs

Group of Companies

ECIL has diversified its activities into multitude of avenues by establishing the following two organisations under the banner of Era Group of Companies. 

1) WTD-ERA (INDIA) LIMITED   An Indo-ltalian joint venture company with equal participation from M/s. ERA-CONSTRUCTIONS (I) LIMITED & M/s WTD Srl, formed on 1st November, 1997. The company is engaged in setting up Water & Waste Water Treatment plants in India. M/s. WTD Srl. of Italy has extensive experience in this field and has set up various types of Water and Waste Water Treatment Plants in over 10 countries world wide. 

The company have acquired latest technologies for setting up:-

· Desalination Plants, 

· R. O. Plants, 

· Municipal Water Treatment Plant, 

· D. M. Plants, 

· Effluent Treatment Plants, 

· Sewage Treatment Plants, 

· Package Treatment Plants. 

Currently the joint venture company is executing the following projects :- 

· An Ash Water Recalculation System for National Thermal Power Corporation at Rihand Super Thermal Power Plant.

· A Paint Shop Effluent Treatment Plant for FIAT ENGINEERING INDIA PVT. LTD. at Greater Noida for NEW HOLLAND TRACTORS Plant. 

Due to worldwide experience of the partners, the company offers a state of art technology to suit the customers requirement.

II) ERA FINANCIAL SERVICES (INDIA) LIMITED  The company registered as a leading Financing Company. The company is in the business of Leasing, Hire Purchase and other financing activities since February'93. 

The company went Public on 20th February, 1996 when its shares were heavily over subscribed and is listed in the Mumbai, Ahmedabad & Delhi stock exchanges. 

The company is a non-banking Financial Company.

MAJOR PLANTS & EQUIPMENTS OWNED BY THE COMPANY

.NO.	DESCRIPTION
1	POCLAIN HYDRAULIC EXCAVATOR
2	JCB EXCAVATOR CUM LOADER
3	JACK HAMMERS
4	COMPRESSORS
5	DUMPERS
6	TEMPO
7	TRUCK TIPPER
8	TRACTOR 50 HP
9	TRACTOR TRAILORS 10-20 TON CAPACITY
10	COMPUTERISED CONCRETE BATCHING PLANT 30 CUM./HOUR
11	BATCHING PLANT 15 CUM. PER HOUR
12	MOBILE TOWER CRANE TYRE MOUNTED 40 MT. CAPACITY
13	MOBILE CRANE TYRE MOUNTED 25 MT. CAPACITY
14	CONCRETE PUMP
15	TRANSIT MIXER
16	BUILDER'S HOIST
17	CONCRETE MIXER
18	WEIGH BATCHER (DOUBLE BUCKET; SWING TYPE)
19	IMMERSION VIBRATORS
20	SCREED VIBRATOR
21	TABLE VIBRATOR
22	DEWATERING PUMP (DIESEL/ELECTRICAL)(3HP/5HP CAP.)
23	CURING PUMP
24	JET PUMP
25	HOLLOW MAKING MACHINE
26	STONE CUTTING MACHINE
27	TILE CUTTING MACHINE
28	FLOOR GRINDING MACHINE
29	HAND GRINDING MACHINE
30	CORE DRILLING MACHINE
31	VACCUM DEWATERING FLOORING SYSTEM
32	POWER TROWEL
33	PLATE COMPACTOR (2.5 TON TO 3.5 TON)
34	ROAD ROLLER (08/10 TON CAPACITY)
35	VIBRATING ROLLER
36	WELDING TRANSF0RMER
37	WELDING GENERATOR
38	BENCH GRINDER
39	HAND GRINDER
40	GAS CUTTING SET
41	CUTTING TORCHES
42	CRAB WINCH (10MT/5MT CAPACITY)
43	ELECTRIC POWER WINCHES (5-7.5 MT)
44	DERRICK
45	CHAIN PULLEY BLOCK (1-10 TON CAPACITY)
46	CUBE TESTING MACHINE (100 MT CAPACITY)
47	PLATE SHEARING MACHINE
48	FLEXURAL BEAM STRENGTH TESTING MACHINE 10MT
49	LATHE MACHINE
50	SERVICE COMPRESSOR WITH HOSE
51	HOT MIX PLANT (20MT. CAPACITY)
52	TAR BOILER
53	PAVER
54	PORTABLE DG SETS 10 KVA
55	PORTABLE DG SETS 15 KVA
56	PORTABLE DG SETS 66 KVA
57	PORTABLE DG SETS 125 KVA
58	THEDOLITE
59	DUMPY LEVEL
60	TILTING LEVEL
61	LABORATORY SET
	(SIEVES, CUBE MOULDS, SLUMP CONE, CORE CUTTER ETC.)
62	SCAFFOLDING & SHUTTERING MATERIALS (STEEL TABULAR)

NOTE : We are always in the process of adding and upgrading plants/equipments and scaffolding/ staging materials to match our growing requirements. So arranging required quantum of plants/equipments and scaffolding/staging materials will not be a constraint.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER

ENDED ON 31ST MARCH, 2006

Particulars	31.03.2006 (Unaudited) (Rs. in Millions)
Net Sales/Income From Operations	3764.583
Other Income	21.961
Total Expenditure
Direct Construction Expenses	3059.303
Staff Cost	117.868
Other Expenditure	86.371
Financial Expenses	102.108
Depreciation	34.662
Gross Profit After Interest & Depreciation but Before Taxation	386.232
Provision For Tax
Current Tax	64.507
Deferred Tax	49.863
Fringe Benefit Tax	1.055
Net Profit After Tax	270.807
Minority Interest	0.206
Net Profit After Minority Interest	270.601
Paid Up Equity Share Capital	186.136
Reserves Excluding Revaluation Reserves	2128.760
Earning Per Share (Not Annualised)
Basic	2.296
Diluted
Aggregate Of Non-Promoters Shareholding
No. Of Equity Shares of Rs. 10/- Each	14844780
Percentage Of Shareholding	79.75%

1 The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 29.04.2006.

2 Segment Reporting as defined in Accounting Standard (AS)-17 is not applicable as the Company is Operating in one segment only i.e. Construction Activity.

3 Disclosure about Investor Complaints: As per information provided by the erstwhile RTA M/s Aarthi Consultants Private Limited, the status of complaints is as under:

Complaint at the beginning of the Quarter	Disposed off during the Quarter	Unresolved as on 31.03.2006.
NIL	56	NIL

4 The Shares of the Company have been listed and admitted to trading on National Stock Exchange of India Limited w.e.f March 29,2006.

5 The Company has issued and allotted 5263200 Equity Shares underlying 5263200 GDRs on 27th February, 2006 and has also obtained listing permission from Luxembourg Stock Exchange, U.K. vide their certificate of listing dated February 28,2006 and the 5263200 Global Depository Receipts have been officially listed on the Euro MTF Market. Further the Company has also obtained listing and trading permission from Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

6 Information under Clause 43 of the listing agreement:

a) Utilization of GDR proceeds aggregating US $ 30,000,240(INR 13344.11 Lacs approx)*:

(As at 31.03.2006)

Object as mentioned in listing circular	Amount Utilized (Rs. in Millions)
Purchase of Plant and Machinery	85.000
Long Term Working Capital	446.139
Investment in BOT Projects	0.000
Other Investments	80.000
GDR Expenses	454.254
Exchange Rate Fluctuations	2.195
Pending utilization in Banks	675.823
TOTAL	1334.400

b) Utilization of proceeds of Rs. 121.230 Millions (approx.) from preferential issue of warrants:

Objects as mentioned in the Explanatory Statement:	Amount Utilized (Rs. in Millions)
Working Capital	31.230
Capital Expenditure	59.667
General Corporate Purposes	30.000
Pending utilization in Bank	0.333
TOTAL	121.230

7 W.e.f. 15.03.2006 M/s Era metal Building Systems Limited has become subsidiary of the Company.

8 The Company has promoted 100% EOU for export of structural and allied Designs etc.

9 Previous Period /Year figures have been regrouped/ recasted wherever necessary.

* Based on Exchange Rate as at February27, 2006.

CMT REPORT [Corruption, Money laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] 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.45.05
UK Pound	1	Rs.84.96
Euro	1	Rs.57.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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
TOTAL		59

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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