MIRA INFORM REPORT

Report Date :

29.02.2008

IDENTIFICATION DETAILS

Name :	MAN INDUSTRIES INDIA LIMITED
Registered Office :	Man House, 102, S.V. Road, Opposite Pawan Hans, Vile Parle (West), Mumbai-400 056, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	19.05.1988
Com. Reg. No.:	11-47408
CIN No.: [Company Identification No.]	L99999MH1988PLC047408
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20899E
PAN No.: [Permanent Account No.]	AAACM2675G
Legal Form :	A public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of submerged arc welded pipes, aluminium extruded sections / profiles and spirally welded tubes and pipes.

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 12275408
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track records. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office	Man House, 102, S.V. Road, Opposite Pawan Hans, Vile Parle (West), Mumbai-400 056
Tel. No.:	91-22-66477500 / 2610 8888
Fax No.:	91-22-66477600 / 01
E-Mail :	enquiry@maninds.org man-sec@maninds.org
Website :	http://www.mangroup.com
Administrative Office :	1, Chandrageet, 120, S. V. Road, Andheri (West), Mumbai - 400 058, Maharashtra, India.
Tel. No.:	91-22-26201365-8
Fax No.:	91-22-26203561
E-Mail :	maninds@giasbm01.vsnl.net.in manindia@bom4.vsnl.net.in
Website :	http://www.mangroup.com
Central Office :	Man House, 15 PU 3, Scheme 54, A. B. Road, Indore – 452 008, Madhya Pradesh.
Tel. No.:	91-731-559070 / 71 / 72 / 73
Fax No.:	91-731-557891 / 92
E-Mail :	manindia@bom4.vsnl.net.in
Website :	http://www.mangroup.com
Overseas Offices :	Located at UK and UAE
Factory :	Aluminium Division Plot No. 67, Sector No. 1, Pithampur Industrial Area, Pithampur (Near Indore), Dhar District, Madhya Pradesh Tel. No. 91-7292-253446 Pipe and Coating Division (Pithampur):- Plot No. 257/258 B, Sector No. 1, Pithampur Industrial Area, Pithampur (Near Indore), Dhar District, Madhya Pradesh Tel. No. 91-7292-253666 PIPE & COATING COMPLEX (ANJAR):- (EXPANSION PROJECT) Village : Khedoi, Taluka : Anjar, District : Kutch (Gujarat) Tel. No : 91-2836-249160
Delhi Office	Flat No. 902, 9th Floor, Indraprakash Bldg., 21 Barakhamba Road, New Delhi – 110001, India
Tel No:	91-11-3359405 / 3314473
Fax No:	91-11-3731920
Mobile No:	91-98210063629
Email :	manind@del6.vsnl.net.in
United Kingdom	No 54, Colum Road , Cathy’s,Cardiff cf10 3ej, Wales. (UK)
Tel No:	0044 7775905222

DIRECTORS

Name :	Mr. R. C. Mansukhani
Designation :	Chairman
Name :	Mr. J. C. Mansukhani
Designation :	Managing Director
Name :	Mr. J. L. Mansukhani
Designation :	Director
Name :	Mr. Sudatta Mandal
Designation :	Director
Name :	Mr. Kirit Damania
Designation :	Director
Name :	Mr. Vijay G. Kalantri
Designation :	Director
Name :	Mr. Vijay Ranchan
Designation :	Director
Management Team:
	Mr. Somnath Roy
	Mr. K G Mantri
	Mr. Sandeep Pathak
	Mr. S Kundu
	Mr. Prakash Deshmnukh
	Mr. Anil Wadhwani
	Mr. P K Sharma
	Mr. Manish Pathak

KEY EXECUTIVES

Name :	Mr. Anil Cherian
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2007:-

Names of Shareholders	No. of Shares	Percentage of Holding
Indian
Individuals / Hindu Undivided Family	14974360	30.71%
Foreign
Individuals (Non – resident Individuals / foreign Individuals)	6625092	13.59%
Public Shareholding
Institutions
Mutual Funds / UTI	5216325	10.7%
Financial Institutions / Banks	3001010	6.16%
Foreign Institutional Investor	4700714	9.64%
Non – Institutions
Bodies Corporate	5033300	10.32%
Individuals
Individuals shareholding nominal share capital up to Rs. 0.100 million	7712071	15.82%
Individuals shareholding nominal share capital in excess of Rs. 0.100 million	532726	1.09%
Clearing Members	257167	0.53%
Non resident Indians	418309	0.86%
Foreign Corporate Bodies	284260	0.58%
Total	48755334	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of submerged arc welded pipes, aluminium extruded sections / profiles and spirally welded tubes and pipes.

Products :

Item Code No.	Product Description
7305	Submerged Arc Welded Pipes
7610	Aluminium Extruded Sections / Profiles

Exports to :

Middle East and UK

Imports from :

Europe and UK

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Quantity (MT)
Pipes Division (Pipes)
Installed Capacity	600000.00*
	400000.00**
Opening Stock	13093.36
Production / Coating in India	189.677
Overseas	46.145
Turnover in India	200279.09
Overseas	46.145
Closing Stock	2467.64

GENERAL INFORMATION

Suppliers :

· Amin Machinery

· Anukampa Salt and Chemicals

· Carbonic Industries

· Dwekam Electrodes

· Geeta Machnies

· Hydmark Applicon

· Malwa Tools Private Limited

· Motiwale Engineering

· Rainbow Rub Tech

No. of Employees :

2555

Bankers :

v State Bank Of India, Commercial Branch, Indore And Overseas Branch, Mumbai

v State Bank Of Indore, P.Y.Road, Indore, Madhya Pradesh

v Bank Of Baroda, Mumbai Main Branch, Fort, Mumbai, Maharashtra

v ICICI Bank Limited, Backbay Reclamation Branch, Mumbai, Maharashtra

v State Bank Of India, Commercial Branch, Indore

v Axis Bank, Fort Branch, Mumbai

v Corporation Bank, IFB, Fort, Mumbai

v ABN Amro Bank, Nariman Point, Mumbai

Facilities :

SECURED LOANS	31.03.2007	31.03.2006
	(Rs. In millions)
From Financial Institutions and Banks
Secured Loans
Working Capital Loans :
Cash Credit/WCDL/FCNRB	1476.221	1337.916
Term Loans :
Rupee Term Loans	131.030	240.581
Foreign Currency Term Loan	846.461	907.115
	977.491	1147.696
Total	2453.712	2485.612

- Term Loans from Banks and Financial Institutions are secured by way of first pari-passu charge on fixed assets of the Company and further secured by personal guarantee by the promoter Directors.

- Working Capital facilities by banker's are secured by first pari-passu charge on all the movable assets of the Company and second charge on the immovable assets of the Company.

- Vehicle finance is secured by way of mortgage of the specific assets.

UNSECURED LOANS	31.03.2007	31.03.2006
	(Rs. In millions)
From Shareholders	0.000	6.356
From Directors	0.000	17.639
Inter corporate Deposits	18.688	0.000
Total	18.688	23.995

Banking Relations :

Satisfactory

Auditors :

Rohira Mehta & Associates

Chartered Accountants

Mumbai

Membership :

Confederation of Indian Industry.

Associates/Subsidiaries :

MAN Group of Companies

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs. 10/- each	Rs 350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26642437	Equity Shares	Rs. 10/- each	Rs.266.424 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		266.424	266.424	199.116
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2802.428	2485.849	740.716
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3068.852	2752.273	939.832
LOAN FUNDS
1] Secured Loans		2453.712	2485.611	1547.357
2] Unsecured Loans		18.688	23.996	80.875
TOTAL BORROWING		2472.400	2509.607	1628.232
DEFERRED TAX LIABILITIES		368.288	261.859	203.678
TOTAL		5909.540	5523.739	2771.742
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2647.375	2453.798	1881.349
Capital work-in-progress		239.611	10.884	305.545
INVESTMENT		11.460	2.749	3.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1797.142	1154.196	631.445
	Sundry Debtors	3326.130	1005.742	1155.160
	Cash & Bank Balances	145.756	1567.419	290.546
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1813.595	1230.119	216.082
Total Current Assets		7082.623	4957.476	2293.233
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4071.529	1901.168	1587.925
	Provisions	0.000	0.000	124.789
Total Current Liabilities		4071.529	1901.168	1712.714
Net Current Assets		3011.094	3056.308	580.519
MISCELLANEOUS EXPENSES		0.000	0.000	1.299
TOTAL		5909.540	5523.739	2771.742

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		11331.029	8699.333	4992.716
Other Income		0.000	0.000	0.000
Total Income		11331.029	8699.333	4992.716
Profit/(Loss) Before Tax		839.548	513.259	289.330
Provision for Taxation		286.645	162.848	106.172
Profit/(Loss) After Tax		552.903	350.411	183.158
Export Value		4162.760	4171.522	1112.111
Import Value		5646.086	3471.564	1407.468
Expenditures :
	Cost of Goods Sold	8733.445	7152.189
	Increase/(Decrease) in Finished Goods	[80.135]	[605.152]	4635.272
	Salaries, Wages, Bonus, etc.	265.123	187.489
	Interest	309.142	268.251
	Other Expenditure	1094.607	1027.644
Total Expenditure		10322.182	8030.421	4635.272

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	3209.900	3353.500	4012.300
Other Income	0.000	193.400	124.900
Total Income	3209.900	3546.900	4137.200
Total Expenditure	2827.400	3119.300	3654.800
Operating Profit	382.500	427.600	482.400
Interest	93.300	61.700	88.000
Gross Profit	289.200	365.900	394.400
Depreciation	51.700	52.600	79.600
Tax	46.900	107.100	109.400
Reported PAT	173.500	189.300	207.300

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	0.86	1.13	1.29
Long Term Debt-Equity Ratio	0.37	0.68	`0.90
Current Ratio	1.27	1.26	1.03
TURNOVER RATIOS
Fixed Assets	3.52	3.04	2.75
Inventory	7.60	9.19	13.19
Debtors	5.18	7.59	5.59
Interest Cover Ratio	3.72	2.91	5.26
Operating Profit Margin(%)	11.75	11.42	8.56
Profit Before Interest And Tax Margin(%)	10.24	9.52	7.19
Cash Profit Margin(%)	6.44	6.17	5.06
Adjusted Net Profit Margin(%)	4.93	4.27	3.69
Return On Capital Employed(%)	21.28	20.01	18.18
Return On Net Worth(%)	19.03	19.07	21.34

LOCAL AGENCY FURTHER INFORMATION

HISTORY:-

Subject was incorporated on 19^th May, 1988 at Mumbai in Maharashtra under the name and style of Man Aluminium Limited having Company Registration Number 47408.

Subsequently, the name of the company was changed to the present.

Man Industries India (MIIL), manufacturer of SAW pipes, Spiral pipes and Aluminium extrusions is part of Mumbai based 'The Man Group'. 

Even though MIIL, which commenced its operations with manufacture of aluminium extrusions, the company's diversification into manufacture of SAW/Spiral pipes is presently contributing more to the company's turnover than the aluminium extrusion division. 

The company promoted by Rameshchandra Mansukhani and incorporated on March 19, 1988 has its aluminium extrusion plant at Pithampur, Madhya Pradesh. The pipes division of the company which include both Saw Pipe manufacturing facility and Spiral Pipe and Coating also located at Pithampur, MP near to the aluminium extrusion plant.  

The company has Collaboration agreement with Chr. Haeusler, Switzerland for API-grade longitudinally welded SAW pipes. The SAW pipe division at Pithampur, which commenced production in Dec.'95 and having an installed capacity of 50,000 tpa can manufacture pipes of diameters between 18 inches and 54 inches and thicknesses between 6 mm and 25.4 mm and of lengths upto 12 mtr.  

The company tapped the Capital Market in Aug '89 to part finance its project to manufacture 4000 tpa of aluminium extrusions in Pithampur and this project commenced commercial production in May 1990. Again in Aug 1994 the company came out with right issue to part finance its project involving expansion of aluminium extrusion capacity and diversification into manufacture of SAW Pipes.  

The capacity of the aluminium extrusion plant was expanded by putting up an imported 1100-tpa press which started production in Oct.'95. The expansion-cum-diversification was part-financed by a rights-cum-public issue in Aug.'94. The company proposed two new projects for P E Coating of Pipes and Spiral Pipe Mill within the existing vicinity of its saw pipes plant at Pithampur is going in full swing and the commercial production was expected by October, 1998. 

The Company's Spiral Pipe Project was commissioned and commercial production was started in April 99. Company also completed diversification of pipe division. The Company had set up a 3-Layer Poly Ethylene Coating Plant at Pithampur for coating of pipes manufactured inhouse and also carry out job work of coating of pipes. The production was started as per the schedule. 

The company is now eligible to bid for major trunk line projects both in domestic and as well in international level as it has upgraded its facilities to meet international standards. Further the company has also got certified with ISO 9002.

Achievements made by the Man Group :

· An ISO 9001/14001/18001 Company

· Largest Exporters to Europe of Aluminium Extrusions

· American Petroleum Institute (API) Certification

· Certified by Engineers India Limited (EIL)

· Government recognized “Export House” status.

· Recipient of Export Excellence Award 1993 & 1994

· Recipient of Management Excellence Award in 1995

· Recipient of Rajeev Ratna Award in 1994

· Recipient of EEPC Award in 1996 & 1999

· Recipient of “Niryat Shree” Award of FIEO for 2001-2002

DIRECTOR REPORTS:

OPERATIONS:

During the year the company achieved net sales of Rs.11330.000 millions an increase of 30.24% over the corresponding period. On account of good export order and healthy domestic market, both the manufacturing facilities of the Company have backed the order very well and they expect the trend to continue.

I) Pipe Division:

The performance of pipe division was satisfactory during the year under review. The division has continued its concentration on export market and achieved export turnover of Rs.4162.800 millions during the year under reporting. The demand book has been constantly increasing and the increased productivity at Anjar will help the Company to grow in multiples.

II) Aluminum Division:

Demerger

During the year, they received the approval of the Honourable High Court of Mumbai to demerge the Aluminium Extrusion division of the Company into a new company, named, Man Aluminium Limited. Under the scheme, the shareholders of their company will be entitled to receive shares of Man Aluminium Limited, free of cost.

FUTURE OUTLOOK:

The buoyant Oil and Gas industry and other infrastructure developments in the domestic and international market provide ample opportunity for growth. Their world class, state of the art manufacturing facilities bring rich dividends to the Company and its stakeholders and the trend is expected to continue in the future. With proper Government support in terms of its industry friendly policies, they are able to increase their share in the market and is expected to increase further on account of the positive outlook of Indian Economy.

MANAGEMENT DISCUSSION and ANALYSIS REPORT

Industry Structure and Business Analysis

The Indian economy witnessed robust growth during 2006-07 for the fourth year in succession. According to the advance estimates released by the Central Statistical Organisation (CSO), real Gross Domestic Product (GDP) growth is expected to accelerate from 9.0 per cent in 2005-06 to 9.2 per cent in 2006-07. Real GDP growth is, thus, expected to average 8.6 per cent during the four year period from 2003-04 to 2006-07. The acceleration in growth during 2006-07 was driven by the continued momentum in the services and manufacturing sectors, both of which are expected to record double-digit growth.

Industrial activity expanded strongly, with real GDP originating in industry estimated to have risen by 10.2 per cent in 2006-07 as compared with 8.0 per cent in the previous year. The index of industrial production (IIP) recorded an increase of 11.1 per cent during April-February 2006-07 vis-a-vis 8.1 per cent a year ago. All constituent sub-sectors shared in the acceleration. While manufacturing, the prime mover, recorded a growth of 12.1 per cent as compared with 9.1 per cent a year ago.

The global economy expanded vigorously in 2006, growing by 5.4 percent. Among emerging market and developing countries, rapid growth was led by China and India, while momentum was sustained across other regions as countries benefited from high commodity prices and continued supportive financial conditions.

The strong growth of Indian economy and infrastructure developments gives tremendous potential for the industry to grow in a major way. The network of oil and gas pipeline in India is at an early stage of development. The country with its large expanse has only about 12,204 km of POL pipe line. Many of the developed countries much smaller than India has oil and gas pipe line in excess of 100,000 km. This shows that there is a wide gap that India need to bridge in order to meet sustained energy demand through transportation of oil and gas through cross country pipe lines. However, now that this sector is also opened for private investment, oil and gas pipe line grid could become reality in few years. In this regard, GAIL, Reliance, ONGC, Petronet LNG, GSPL and other oil companies have emerged as prominent players. They expect that demand for SAW pipes will grow in line with their plans to lay pipe lines across the country.

Similarly the budgetary allocation of the government to oil and gas infrastructure development as well as urban infrastructure for development plan will also affect the industry.

As per industry sources, a large number of oil and gas pipe line project are being planned in Middle East/West Asia. This market being close to India has opened many opportunities for pipe producers in India and will continue to remain important market for them.

During the year under review, their company opened new frontiers of business in USA, Malaysia and Nigeria and initiated efforts in entering new markets, such as Brazil, Bangladesh and Burma. The Steel coil and plates are major raw material for pipe industry. The trend in prices of steel affects the secondary producers like them. Numerous factors affect the cycle of steel industry and affect the steel prices. Some of these factors are general economic condition, capacity and utilization of it, import duties, currency fluctuations etc.

Mission and Business Strategy:

They at MAN maintain generally accepted standards of corporate conduct towards its employees, consumers and society and believe that the policies must balance individual interest with corporate goals and operate within the accepted norms of propriety, equity and sense of justice. The Company believes that it is rewarding to be better managed and governed and to align and intensify its activities with national interest. The Company would take all round efforts in its pursuit to enhance the market share in the world market and enhance shareholders value.

Financial and Operating Performance:

The total income of the Company for the year 2006-07 increased by 30.24% to Rs.11330.000 millions. The operating profit (PBIDT) for the year was Rs. 1318.000 millions compared to Rs. 937.200 millions in the previous year. The interest and Financial charges stood at 309.100 millions, the interest cost has increased in the financial year 2006-07 on account of overall increase in interest rates. The Cash Profit for the year stood at Rs. 828.600 millions. Net Profit of the Company stood at Rs. 552.900 millions as compared to Rs.350.500 millions for the previous year.

Earnings per Share (EPS) were Rs. 20.74 as against Rs. 18.27 for the previous year. A dividend of 30% has been proposed, subject to the approval of the shareholders. The Corresponding dividend payout will be Rs. 79.927 millions in addition to tax of Rs. 13.584 millions payable by the Company as tax on distribution of dividend

Outlook and Opportunities:

The increased demand for oil and gas across the globe is the main driver for higher demand for their product. It is anticipated that the demand on oil and gas will grow all over which will result in higher demand for pipelines as the efficient mode of transportation. Their growth model is built up on a strong local presence and focus on export market. Exports have been the driver for their growth and they expect it to remain robust. The company is in the process of adding many international clients and have opened door for new market discoveries.

Various Oil and Gas projects have been announced by companies in India, which amounts to investments of over US$ 30 billion upto 2008.

Proposed Domestic Pipelines : Estimated Volumes and Investment	Length (kms)	Volume (mmscmd)	Investment Rs. Bn)
Goa – Hyderabad	652	10	22
Kakinada Hyderabad	469 ( Trunk) 278 (Spur)	20	20
Hyderabad – Uran – Ahmedabad	941 (Trunk)	35	55
Karnataka – Maharashtra – Gujarat	244 (Spur)
Chennai – Tuticorin Pipeline	670	10	25
Chennai – Bangalore – Mangalore Pipeline	660	10	24
Kakinada – Basudebpur – Haldia Gas Pipeline (KBHPL)	1100	20	52
Dabhol – Panvel Pipeline	165.78	12	13.26
Dari Bawana – Nangal	---	10	30
Dahej – Uran (Trunk Lime)	386(Trunk) 112(Spur)	12	18.31
Kakinda – Chennai	---	20	25
Jagdishpur - Haldia	876	20	40
Kochi Kanjirkkod Bangalore / Mangalore	876	10	22.5
Chainsa Gurgaon Jhajjar Hissar Pipelines		10	15
Total		199	362.07

Further, massive investments have been planned in gas pipelines. A National grid has been proposed which will require a total investment of about USD 15-20 billion. 

The successful expansion of Pipe manufacturing facility at Anjar has given useful result to Company in terms of scale of operation, reduced cost of logistics, efficient handling of raw material and final product etc. In long term, these advantages coupled with other advantages provided by the Government will help the Company in long-term. 

Indian Companies now account for almost a quarter of the world's SAW pipe production. The current global boom in oil and gas resulted in skyrocketing demand for pipelines. Line Pipe is a product, which has a designed life, depends on various factors like the characteristics of the fluid being transported, service conditions and operating pressures. The pipelines, which complete their designed life, are to be replaced in phases. The market for new and replacement pipelines are constantly growing and is expected to reach 200,000 km.

The Company is having world class manufacturing plants for the manufacture of SAW pipes and the close proximity to monsoon free port at Kandla and also to the fastest growing private port of Mundra gives a cutting edge to the Company in transportation and delivery of its products. More capacity utilization at Anjar facility will reduce the logistic cost significantly and in turn increase the profitability.

During the year under review, their company installed 5 captive wind mills in Gujarat in a phased manner with aggregate installed capacity of TMW. The wind mills are since operating satisfactorily. As result of installing the wind mills, their Company will be entitled to carbon credits. Necessary steps have been initiated for registration in this regard.

The company is currently implementing an expansion scheme at its Anjar unit which will increase the capacity of H-SAW pipes by 500 kms/year.

Demerger:

During the year, they received the approval of the Honourable High Court of Mumbai to demerge the Aluminium Extrusion division of the company into a new company named, Man Aluminium Limited. Under the scheme, the shareholders of their company will be entitled to receive shares of Man Aluminium Limited, free of any cost.

OTHER INFORMATION:-

The Honorable Bombay High Court has approved the Scheme of Demerger of the Aluminium Division of the Company as on 1^st April 2006 and pursuant to the Scheme all the assets and liabilities pertaining to the said division has been transferred at their respective book values.

FIXED ASSETS:

· Land

· Factory Building

· Office Premises

· Plant and Machinery

· Dies and Patterns

· Office Equipment

· Electrical Equipment

· Furnitures and Fixtures

· Vehicles

· Computer

· Windmill

· Garden

PRESS RELEASE:

Publication – Indiaearnings.com

Date – 29^th January

Edition: - Online

Man Industries total Income of Rs. 125.000 millions

Man Industries has declared its third quarter results company’s Q3 net profit was up at Rs. 207.000 millions from Rs. 165.000 millions, YOY.

Key Takeaways from the Man Industries Concall…

Out of Rs. 10000.000 millions order of last year the company executed around 25%

The company has Rs. 16000.000 millions order book.

The total income is of Rs. 124.900 millions

The company has already implemented first phase expansion and commissioned new Spiral Mill of 200, 200

MTPA at Anjar and is in advanced stage of adding one more production lines for spiral pipes.

The cash and bank balances stand at Rs. 250.000 millions.

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	Indian Rupees
US Dollar	1	Rs.39.92
UK Pound	1	Rs.79.31
Euro	1	Rs.60.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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

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

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

RATING EXPLANATIONS

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

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