MIRA INFORM REPORT

Report Date :

28.04.2012

IDENTIFICATION DETAILS

Name :	EMCO LIMITED (w.e.f. 22.01.1999)
Formerly Known As :	EMCO TRANSFORMERS LIMITED
Registered Office :	N-104, MIDC Area, Jalgaon – 425003, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.09.1964
Com. Reg. No.:	11-013011
Capital Investment / Paid-up Capital :	Rs.130.274 Millions
CIN No.: [Company Identification No.]	L31102MH1964PLC013011
TAN No.: [Tax Deduction & Collection Account No.]	NSKE00379B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Transformers and Electronic Energy Meters.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 22300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has some incurred losses in the current year. However, Nethworth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	N-104, MIDC Area, Jalgaon – 425003, Maharashtra, India
Tel. No.:	91-257 - 2272 462 / 2272 572
Fax No.:	91-257- 2272 598
E-Mail :	emco@emcoindia.com corp.cs@emcoindia.com emco.jalgaon1@emcoindia.com
Website :	http://www.emcoindia.com
Corporate Office :	1st Floor, Piramal Tower, Peninsula Corporate Park, G. K. Kadam Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India
Factory 1 :	Plot No. F-5, Road No. 28, Wagle Industrial Estate Thane (West) - 400 604, Maharashtra, India
Tel. No.:	91-22-40404500
Fax No.:	91-22-25820571 / 25830527
Factory 2 :	Gat No. - 113, 114, 115, Umala, Aurangabad Road, Jalgaon – 425003, Maharashtra, India
Tel. No.:	91-257-2350506 / 07
Fax No.:	91-257-2350505
Factory 3 :	519/521, Asoj, Vadodara - Halol Highway, Vadodara - 391 510, Gujarat, India
Tel. No.:	91-2668-281113 / 4
Fax No.:	91-2668-281030
Factory 4 :	Survey No. 57/2, Bldg. No. B-3, Sanjay Industrial Estate, Gala No. 1-8 Waghdhara Road, Dadra (UT) - 396 193, India
Tel. No.:	91-260-2668 177 / 78
Fax No.:	91-260-2668 176
Regional Offices :	Located at : · New Delhi · Kolkata · Bengaluru · Chennai · Lucknow · Ahmedabad · Panchkula

DIRECTORS

As on 31.03.2011

Name :	Mr. Rajesh S. Jain
Designation :	Chairman
Qualification :	B.E. (Electronics)
Name :	Mr. Shailesh S. Jain
Designation :	Vice Chairman
Qualification :	B.E. (Chemical)
Name :	Mr. Ajay Kumar Dhagat
Designation :	Managing Director
Qualification :	B. E (Electrical)
Name :	Mr. K. N. Shenoy
Designation :	Independent Director
Qualification :	B.E. (Electrical), PGDBA
Name :	Mr. S.V. Deo
Designation :	Independent Director
Qualification :	B.E. (Electrical), DBM, MIE
Name :	Mr. T.N.V. Ayyar
Designation :	Independent Director
Qualification :	B Com, FCA
Name :	Mr. Bheru Choudhary
Designation :	Independent Director
Qualification :	B.Com, LLM

KEY EXECUTIVES

Name :	Mr. Ajay Jain
Designation :	Chief Financial Officer
Qualification :	B Com. FCA
Name :	Mr. Praveen Kumar
Designation :	Company Secretary
Qualification :	B Com, LLB, ACS

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	22,365,140	34.34
Bodies Corporate	5,916,833	9.08
Sub Total	28,281,973	43.42
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	28,281,973	43.42
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3,560,900	5.47
Insurance Companies	574,320	0.88
Foreign Institutional Investors	347,869	0.53
Sub Total	4,483,089	6.88
(2) Non-Institutions
Bodies Corporate	16,255,639	24.96
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	11,155,754	17.13
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,888,696	5.97
Any Others (Specify)	1,071,709	1.65
Clearing Members	261,774	0.40
Directors & their Relatives & Friends	62,975	0.10
Hindu Undivided Families	67,800	0.10
Non Resident Indians	678,310	1.04
Trusts	850	-
Sub Total	32,371,798	49.70
Total Public shareholding (B)	36,854,887	56.58
Total (A)+(B)	65,136,860	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	65,136,860	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Transformers and Electronic Energy Meters.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Transformers	85.04.23
Electronic Energy Meters	90.28.00

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity*	Installed Capacity	Actual Production
Transformers	KVA	NA	20000000	9905557
Electronic Energy Meters	Nos.	NA	1300000	174146
Towers & Structurals**	MT.	NA	45000	40069
Wind Power Generation	KWh	NA	92768400	18872044

Notes:

* - As certified by the Management but not verified by the Auditors, being a technical matter.

** - The quantity includes 14,262 MT (1,027 MT) purchased / processed from third parties.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Dena Bank

· State Bank of India

· Union Bank of India

· Bank of India

· State Bank of Hyderabad

· Canara Bank

· Andhra Bank

· The Federal Bank Limited

· ING Vysya Bank Limited

· Standard Chartered Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
12.50% Non Convertible Debentures	500.000	500.000
Vehicle Loans	4.929	5.333
Term Loans a) Term Loan Working Capital From Bank	250.000	0.000
b) Term Loan From Bank	239.810	323.400
Working Capital from Banks a) Working Capital Demand Loan	1331.187	1224.879
b) Foreign Currency Demand Loan	253.157	100.783
c) Cash Credit / Packing Credit - Rupee / Foreign Currency	1038.774	444.621
Total	3617.857	2599.016

Banking Relations :	--
Auditors :
Name :	P. Raj and Company Chartered Accountants
Entities where Key Management Personnel have Significant Influence:	· Purna Properties and Investments Private Limited · EMCO Foundation · EMCO Power Quality Solutions Limited
Joint Ventures :	· PT Vardhaman Logistics · PT Vardhaman Mining Services · Rabaan (s) Pte. Limited · Shyam EMCO Infrastructure Limited · Kalinga Energy and Power Limited · PT Bina Insan Sukses Mandiri (from 26th November 2010)
	·
Subsidiaries :	· EMCO Energy Limited (Upto 24th July 2009) · EMCO Power Limited · EMCO Renewable Energy Limited (Previously known as EMCO Power Infrastructure Limited) · EMCO Overseas Pte Limited · EMCO Infrastructure Limited (Previously known as Warora Power Company Limited) · East West Power Generation Company Limited · EMCO Edison Transformer Pty. Limited · PT Setenco Investa Niaga (from 26th November 2010)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.2/- each	Rs.150.000 Millions
500000	Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.50.000 Millions
	TOTAL		Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65136860	Equity Shares	Rs.2/- each	Rs.130.274 Millions

Notes:

Equity Share Capital includes:

a) 888100 Shares represent shares allotted as fully paid up pursuant to a contract for consideration other than cash.

b) 744000 Shares represent shares which were issued as fully paid bonus shares by Capitalisation of Reserves.

c) 193650 Shares represent shares which were issued as fully paid up to shareholders of the erstwhile EMCO Esta Capacitors Limited on its amalgamation with the Company, for consideration other than cash.

d) 6100000 Shares represent shares which were issued as fully paid up to shareholders of the erstwhile India Energy Investments Private Limited on its amalgamation with the Company for consideration other than cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		130.274	123.854	1 17.674
2] Share Warrants		0.000	49.755	1 95.500
3] Reserves & Surplus		5435.323	5699.856	4082.422
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5565.597	5873.465	4082.422
LOAN FUNDS
1] Secured Loans		3617.857	2599.016	3561.441
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		3617.857	2599.016	3561.441
DEFERRED TAX LIABILITIES		36.591	248.048	199.579
TOTAL		9220.045	8720.529	8156.616
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2224.857	1964.369	1825.563
Capital work-in-progress		232.977	188.533	234.490
INVESTMENT		96.172	103.306	121.756
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1534.501	1525.682	1756.252
	Sundry Debtors	5921.172	4774.692	4699.782
	Cash & Bank Balances	1553.937	1774.423	1286.463
	Other Current Assets	139.773	68.632	41.263
	Loans & Advances	2252.494	1877.224	2405.993
Total Current Assets		11401.877	10020.653	10189.753
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.024	1.378	2.385
	Other Current Liabilities	4698.553	3439.043	4116.190
	Provisions	35.261	115.911	96.371
Total Current Liabilities		4735.838	3556.332	4214.946
Net Current Assets		6666.039	6464.321	5974.807
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9220.045	8720.529	8156.616

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	10494.698	9785.532	9962.577
		Other Income	15.992	1280.133	0.578
		TOTAL (A)	10510.690	11065.665	9963.155
Less	EXPENSES
		Materials	9002.714	7447.925	7385.773
		Employee Cost	567.337	534.265	410.881
		Other Expenses	968.059	702.412	782.649
		Prior Period Items	0.012	1.337	1.156
		TOTAL (B)	10538.122	8685.939	8580.459
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(27.432)	2379.726	1382.696
Less	FINANCIAL EXPENSES (D)		441.185	367.965	415.220
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(468.617)	2011.761	967.476
Less/ Add	DEPRECIATION/ AMORTISATION (F)		187.497	178.864	163.744
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(656.114)	1832.897	803.732
Less	TAX (H)		(213.787)	494.931	272.724
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(442.327)	1337.966	531.008
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2411.461	1356.660	1038.756
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	140.000	75.000
		Debenture Redemption Reserve	0.000	41.733	41.733
		Proposed Dividend	13.027	86.698	82.372
		Tax on Dividend	1.779	14.734	13.999
	BALANCE CARRIED TO THE B/S		1954.328	2411.461	1356.660
	EARNINGS IN FOREIGN CURRENCY
		Direct Export	507.510	541.589	1358.836
		Other Recovery	0.026	0.388	0.000
		Deemed Exports (including Local Currency)	511.857	451.345	248.988
	TOTAL EARNINGS		1019.393	993.322	1607.824
	IMPORTS
		Raw Materials/ Stores & Spares	652.562	677.612	879.886
		Capital Goods	138.490	53.231	123.230
	TOTAL IMPORTS		791.052	730.843	1003.116
	Earnings/ (Loss) Per Share (Rs.)
	Basic		(7.05)	22.72	9.03
	Diluted		(7.05)	22.16	9.03

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter	30.09.2011 2^nd Quarter	31.12.2011 3^rd Quarter
Type	UnAudited	UnAudited	UnAudited
Net Sales	1879.960	1979.490	1948.690
Total Expenditure	1693.530	1780.780	1783.240
PBIDT (Excl OI)	186.430	198.710	165.450
Other Income	0.000	3.920	0.000
Operating Profit	186.430	202.630	165.450
Interest	111.150	124.470	93.800
Exceptional Items	0.000	0.000	0.000
PBDT	75.280	78.160	71.650
Depreciation	49.420	50.710	50.870
Profit Before Tax	25.860	27.450	20.780
Tax	8.400	8.950	6.740
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	17.450	18.500	14.040
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	17.450	18.500	14.040

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.21	12.09	5.33
Net Profit Margin (PBT/Sales)	(%)	6.25	18.73	8.07
Return on Total Assets (PBT/Total Assets}	(%)	9.42	15.29	6.69
Return on Investment (ROI) (PBT/Networth)		0.12	0.31	0.20
Debt Equity Ratio (Total Liability/Networth)		1.50	1.05	1.90
Current Ratio (Current Asset/Current Liability)		2.41	2.82	2.42

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	No

Review of Operations

During the year, Income from Sales and Services was Rs.10494.700 Millions against Rs.9785.500 Millions in the previous year registering growth of 7.24%.

The Company has incurred a net loss of Rs.442.300 Millions in current financial year against the net profit of Rs.1337.900 Millions in previous financial year. The profit of previous financial year includes extra-ordinary item of Rs.1273.500 Millions which was arising out of sale of investment in EMCO Energy Limited, a wholly owned subsidiary of the Company.

The Company’s performance was adversely affected due to Project - Sub-station business where we have experienced execution challenges which include designs, drawings and estimations for lump sum items and also had cost overrun due to delay and quantity variation coupled with firm prices at the time of project closure. Further Transformers Industry is passing through a tough time due to competition as a result of excess capacity within the country which leads to pressure on margin.

The Company is focusing on commissioning of the projects which will release the retention money and reduce the interest cost. The Company has also taken necessary corrective actions and effective measures to improve the performance of the Company.

MANAGEMENT'S DISCUSSION AND ANALYSIS

Overview

The demand for electricity will continue to grow in their Country. It is safe to assume that with over 7.5 % growth in GDP, the power sector will grow in excess of 15%.

The power generation capacity has grown by an average to 6100 MW over the past three years and all indications are that in the next two to three years it will grow between 12000 MW to 15000 MW annually. With this increase of generation both from government utilities and IPP segment, Transmission and Distribution (Tand D) segment will achieve corresponding growth.

Growth through conventional sources of energy will be augmented by non-conventional and renewable sources of energy. The government has taken several initiatives in this direction and in the coming years, solar energy is expected to be harnessed more intensively for power generation. New challenges will have to be faced particularly in terms of technology cost vis-a-vis the cost of generation of power.

Power Transmission and Distribution scenario in India

Keeping in mind the target for generation at 100,000 MW in the 12th Plan, T and D Segment will witness significant growth. The estimated fund requirement for T and D segment alone is Rs.6.11 lakhs crores during this period.

In the transmission sector, primary growth will be witnessed in the 765kV and 800kV HVDC segments. Organizations contributing to these segments will grow at a faster rate as compared to the organizations not present in these areas. Grid stability and smart grids solutions will be at the forefront of development.

In the distribution segment, the main theme will continue to be reduction of losses. Automation and supervisory remote control will lead the technology drive.

The business model for T and D segment will also witness major changes. In the transmission sector, IPTC is rapidly gaining popularity and this trend will only increase. In the distribution sector, franchisee model, particularly for city distribution is evolving with modest success.

Division Wise Review:

Transformer Division

Transformer remains their core strength with 20,000 MVA installed capacity. Division has reasonable order book for the year 2011-12 to support the capacity from several large utilities and industrial customers.

The industry is suffering from excess capacity, and one of the important reasons for this is strong competition from overseas manufacturers, particularly from China and Korea in large transformer space. Increase in demand is therefore not witnessed by local manufacturers. This has put a margin under severe pressure for the industry

as a whole.

The company is addressing the challenges by adopting several measures. They have strengthened their position in the high technology segment and they are now one of the leading players in high range of GT and ICT, in addition to the conventional range. This position was achieved by persistent Design and Development efforts. Their leadership was validated with the successful short circuit test of 400/220kV, 315 MVA transformers at KEMA. With this, they are now amongst very select group of transformer manufacturers having this credential. It is further significant that this product has cleared the strenuous first attempt. They also achieved the distinction of successfully commissioning 400kV, 500 MVA bank transformers at MSETCL.

They are continuing their efforts in technology and they have plans to introduce products with aims of international competence. Towards this, they have an empanelled design team with global experience and repute. They also have plans for acquiring global technology in defined range from various sources. They expect their transformer business will grow and also be on the forefront of technology.

Project Division

The company has positioned itself very strongly as a leading player in evacuation and transmission of power. The synergy is achieved through two groups within their project division- Sub-stations and Transmission lines. Both the groups are now ready with robust engineering solutions, project management and quality processes.

Project Division: Sub- Station (SBU)

The company is executing number of 400/220/132 kV sub-stations for various utilities across the country. Performance of this SBU was not satisfactory in the current year due to cost over runs in some of the projects. Their focus remains on closure of these projects which will release their resources and capital and improve the liquidity of the Company.

During the year, the Company has commissioned 16 large projects of 400 kV of PGCIL, MSETCL and few other projects of 220 kV and 132 kV sub-stations of KPTCL, CSPTCL, WBSETCL etc.

The company is now geared to operate in the market of 765kV sub-stations and this is expected to provide reasonable contribution in future. They are now moving into the global market as an EPC player and they have started the execution of their overseas project.

They have carved their own space in the fast growing GIS business after completing the 220 kV GIS Sub-station of MESTCL. They have strategic tie-ups with international suppliers of GIS and this will support them in meeting their growth objectives.

Transmission Lines (SBU)

The Transmission Line Division is presently executing 765 kV lines of PGCIL and in the year , major progress has taken place in all the lines.

The industry faces major challenges in terms of availability of trained and skilled workers for execution of lines. The company has been putting its best efforts for securing the manpower needs through various ways including training at various levels.

The Company has been awarded orders for construction of two nos. of 400 kV DC Quad Transmission Lines by RRVPNL during the year. The overall prospect of the industry is encouraging and they are ready to partner this.

There is growing opportunities in the IPTC business. The Company has bagged it's first order under Public Private Partnership (PPP) model to establish "Transmission System 220 KV S/C Sikar - Nawalgarh Jhunjhunu Line with 220 / 132 KV GSS at Nawalgarh and associated Schemes / work" through tariff based competitive bidding process. This is an important milestone and will pave the way for similar success in future.

Their factory in Baroda, which manufactures transmission tower component's has been upgraded and capacity increased to face challenges.

The Company is exploring international business opportunities in Transmission line and has received it's maiden order for export of galvanized structure from the international market.

Meter Division

The meter market has evolved significantly in the last few years in terms of accuracy, communication and control. They are progressing with their plans to offer a wide range of products and solutions to this market. Introduction of new range of meters will help them achieve projected growth.

International Division

International Division offers single point access to all its global customers for its products as well as solutions as an EPC player. The Company is an established player in the international market for transformers and exporting to more than 40 countries in America, Europe, Middle-East, and Asia pacific. It has an impressive international Clientele that ranges from power Utilities, Oil and gas sector, Mining, EPC contractors and Industries.

The Company is the only Indian manufacturer to be approved with SEC (Saudi Electric Company) for supply of transformers in Saudi Arabia.

As discussed in the Project Business, the Company has now started offering its service as an EPC player for Sub-stations and Transmission Lines globally and bagged its first supply sub-station Order for Vietnam.

Coal Mine-Indonesia

The Company has invested (37.35% stake) in a Coal mine in Indonesia having an estimated thermal coal reserve of 105 million metric tons through its wholly-owned Singapore based subsidiary. During the year, the mining of coal has started, and with the infrastructure in place the Company expects the production of coal to increase in the coming years.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE HALF YEAR ENDED 30TH SEPTEMBER 2011

(Rs. in Millions)

SR. NO.	PARTICULARS	QUARTER ENDED	HALF YEAR ENDED
		30.09.2011	30.09.2011
		Un-audited	Un-audited
1	(a) Net Sales/ Income from Operations	1979.489	3859.444
	(b) Other Operating Income	-	-
	Total Income from operations(a+b)	1979.489	3859.444
2	Expenditure
a	(Increase)/ Decrease in Stock in trade and work in progress	(55.057)	(196.404)
b	Consumption of raw materials	1602.772	3125.124
c	Purchase of traded goods	-	-
d	Employees Cost	143.658	290.933
e	Depreciation	50.707	100.129
f	Other Expenditure	89.410	254.657
9	Total	1831.490	3574.439
3	Profit from Operations before Other Income, Interest and Exceptional	147.999	285.005
	Items (1-2)
4	Other Income	3.918	3.918
5	Profit before Interest and Exceptional Items (3+4)	151.917	288.923
6	Interest (Net)	124.470	235.622
7	Profit after Interest but before Exceptional Items (5-6)	27.447	53.301
8	Exceptional Items	-	-
9	Profit(+)/Loss(-) from Ordinary activities before Tax (7+8)	27.447	53.301
10	Tax Expenses	8.952	17.352
11	Net Profit(+)/Loss(-) from Ordinary activities after tax (9-10)	18.495	35.949
12	Extraordinary Items	-	-
13	Net Profit (+)/Loss (-) for the period (11+12)	18.495	35.949
14	Paid-up Equity Share Capital	130.274	130.274
	Face value of Rs. 2 each
15	Paid up Debt Capital		500.000
16	Reserves (excluding Revaluation Reserves)
17	Earnings Per Share (EPS)
a	1. Basic EPS before extraordinary items (not annualized) (Rs./share)	0.28	0.55
	2. Diluted EPS before extraordinary items (not annualized) (Rs./share)	0.28	0.55
b	1. Basic EPS after extraordinary items (not annualized) (Rs./share)	0.28	0.55
	2. Diluted EPS after extraordinary items (not annualized) (Rs./share)	0.28	0.55
18	Debt Service Coverage Ratio (DSCR)		2.23
19	Interest Service Coverage Ratio (ISCR)		1.65
20	Public Shareholding
	No. of shares	37863768	37863768
	Percentage of Shareholding	58.13%	58.13%
21	Promoters and Promoter Group Shareholding
a)	Pledged / Encumbered
	- Number of shares	10000000	10000000
	- Percentage of shares to total shareholding of Promoter and Promoter	36.67%	36.67%
	Group
	- Percentage of shares to total share capital of the Company	15.35%	15.35%
b)	Non-encumbered
	- Number of shares	17273092	17273092
	- Percentage of shares to total shareholding of Promoter and Promoter	63.33%	63.33%
	Group - Percentage of shares to total share capital of the Company	26.52%	26.52%

Notes:

1. Statement of Assets & Liabilities as per clause 41 of the listing agreement

(Rs. in Millions)

	6 Months Ended
	30.09.2011
SHAREHOLDERS' FUNDS:	(Unaudited)
(a) Share Capital	130.274
(b) Share Warrants	-
(c) Reserves and Surplus	5471.272
LOAN FUNDS	4360.019
DEFFERED TAX LIABILITY (NET)	53.943
TOTAL SOURCES OF FUNDS	10015.508
FIXED ASSETS (including CWIP and Capital Advance)	2471.521
INVESTMENTS	96.172
CURRENT ASSETS, LOANS AND ADVANCES
(a) Inventories	1743.293
(b) Sundry Debtors	6498.273
(c) Cash and Bank balances	338.960
(d) Other current assets	382.967
(e) Loans and Advances	2894.399
Less: Current Liabilities and Provisions
(a) Liabilities	4386.316
(b) Provisions	23.761
DEFFERED TAX ASSET(NET)	-
TOTAL APPLICATION OF FUNDS	10015.508

2 The above financial results were reviewed by the Audit Committee and taken on record by The Board of Directors at their meeting held on 4th November 2011.

3 The Statutory Auditors of the Company have conducted a Limited Review of the above Financial Results

4 The Company has only one reportable Segment i.e. Transmission and Distribution Segment within Power Sector.

5 There was no investor complaint pending as at the beginning of the quarter. The Company has received 8 investor complaints during the quarter ended on 30th September 2011 which have been disposed off during the said quarter. There was no complaint lying unresolved at the end of the quarter.

6 Ratios have been computed as follows:

a) DSCR = Earning before interest on term loan and debentures, depreciation and tax (before extraordinary item)/(interest on term loans and debentures + principal repayment of term loans and debentures).

b) ISCR = Earning before interest, depreciation and tax (before extraordinary item) / Interest expenses

7 Paid up Debt Capital comprises listed Debentures.

8 Previous period figures have been regrouped / reclassified, wherever necessary.

Contingent Liabilities Not Provided For in Respect of (As on 31.03.2011):

a) Bank Guarantees outstanding as at the yearend (Gross) –(Secured) 7006.251 Millions

b) Bank Guarantees outstanding as at the yearend (Gross) –(Secured) Given for erstwhile Subsidiary, EMCO Energy Limited (Subsidiary upto 24th July 2009) NIL

c) Letters of Credit outstanding (net) as at the yearend (Secured) 928.484 Millions

d) Guarantee given for Subsidiary Company 530.760 Millions

e) Disputed amount of Sales Tax in respect of which appeals have been filed. 9.354 Millions

f) Claims made by workmen for re-instatement. Matters Subjudice. - Amount not ascertainable

g) Disputed amount of Income Tax in respect of which rectification has been filed 59.013 Millions

h) Disputed amount of Excise duty and Service tax in respect of which the Company is in appeal. 233.680 Millions

i) Claim of about Rs.2.836 Millions by suppliers against the Company. The matter is Subjudice.

j) Suit of Rs.10.700 Millions filed by a Sub-Contractor against the company, proceeding is pending before Sole Arbitrator.

k) Summary suit of Rs.1.013 Millions filed by one supplier against the Company. The matter is Subjudice.

l) Claim filed against the company for compensation not acknowledged as debt Rs.0.752 Millions

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Air Craft

· Wind Energy Generators

· Air Conditioners and Office Equipments

· Furniture and Fixtures

· Vehicles

· Leasehold Improvements

· Goodwill

· Technical Know-how and Licenses

WEBSITE DETAILS

PROFILE

Tomorrow’s world is an exciting space filled with opportunities for EMCO. The US$600 billion Indian Power story which is projecting an anticipated demand of over 315GW by 2017, is an opportunity that is spanning out as one of immense potential, a fact which world majors have already understood and have started making their strategic presence felt. It is in this arena that EMCO with its indigenous technology with demonstrated capabilities and strategic tie-ups with world renowned co's brings in an unbeatable combination of experience, youth and partnership.

EMCO fosters a culture that foresees the future and responds pro actively to its challenges, while delivering maximum value to our customers through technology, quality and service. A vital combination of vision, passion, ambition, adaptability, adoption of new generation technology, value centricity and people focus has fuelled the commendable growth exhibited by EMCO in the last decade.

EMCO, established in 1964, has evolved itself into a formidable force in the power sector in India. It is re-energized, re-engineered and raring to go, not only to live up to the dynamic changes and challenges in the domestic and global markets but also to carve a niche of its own in all segments of the power sector. By constructing a compelling technological foundation, backed by consistent in-house R and D support, EMCO is enhancing its product quality and developing new features, thus building new inroads for products and solutions in the global market.

EMCO has 5 state-of the-art manufacturing plants at Thane, Jalgaon, Dadra, Vadodara, and 15 offices across India. All products are manufactured under ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified plants as per IEC, ANSI, BS and other international standards. EMCO has a strong technology framework, with in-house RandD and International Advisory Board on Technology (IABT), spearheading various initiatives to optimise power transmission and distribution through cutting-edge technology. EMCO provides solutions and products for power generation, transmission, distribution and industry in India and over 40 countries worldwide.

Having already expanded its operations in various countries, EMCO looks positively towards widening its presence globally. EMCO's international division offers single point access to all its global customers for its products and services. This focused attention has lead to EMCO's success in the Global market. EMCO has been ever persistent towards meeting international quality standards, ensuring highest level of compliance to quality, environment, health and safety which explains it‘s outstanding global reputation.

BOARD OF DIRECTORS

Mr. Rajesh Jain, Chairman

B.E. (Electronics), joined the Company in 1988 as a management trainee. In 1994, he became CMD of the Company. Under his leadership, the Company has grown from Rs.250.000 Millions to Rs.11000.000 Millions. In 2000, elected as the youngest president of IEEMA. In the same year became the Vice Chairman of Maharana Pratap Education Trust, which runs 4 schools for 2,400 children. Member of APDRP Task Force of Ministry of Power in 2002. Member of the CII State Council of Maharashtra, in 2005-06 and 2007-08. Member of CII-Western Region Council in 2010-11. The Chairman of ELECRAMA in 2006, largest Exhibition in the world for Electrical Industry. Founder Chief Patron (FCP) of JITO and a Trustee of EMCO Foundation.

Mr. Shailesh Jain, Vice Chairman

B.E. (Chemical), joined as Executive Director from October, 1993. He has been elevated to Joint Managing Director in 1996 and as "Vice-Chairman and Managing Director" in 2008. He has personally contributed for the fast track growth that EMCO is experiencing today. The establishment of Energy Meters and Projects Division of the Company is his personal brainchild. Under his guidance, the Company had taken certain major initiatives - like building up world-class manufacturing plant with state of art equipment to manufacture upto 20,00 MVA transformers, one of the largest capacity plant in Asia, expansion of the product reach globally, etc. He is an active member of CII (Western Region) and IEEMA.

Mr. K. Narsim Shenoy, Independent Director

B.E. Electrical is the ex-Chairman of Asea Brown Boveri Limited (ABB). He has done his Business Management at IMD, Lausanne and is a Fellow member of Institution of Engineers (India) and National Academy of Engineers. He was associated with ABB for 40 years. He is on the Board of several companies. He is also past President of CII, IEEMA and ERDA.

Mr. S. V. Deo, Independent Director

B.E. Electrical, DBM, MIE, has vast experience in the field of Transmission and Distribution of Power in Maharashtra State Electricity Board. He joined MSEB in 1961, as "Junior Engineer" and was elevated to the post of Technical Director - Transmission and Distribution of entire state of Maharashtra. In the year, 1998 the Government of Maharashtra appointed him as Technical Member (Transmission and Distribution). He then retired as a Member on 31st March, 2002. Presently he is working as Technical Advisor for a reputed Indian Wind Turbine manufacturer to set up large wind farms in India / USA.

Mr. T.N.V. Ayyar, Independent Director

B.Com and FCA. He has vast experience in the field of finance, banking, accounts, audit, taxation, project and general management and commercial matters. He is on the Board of several reputed companies.

Mr. Bheru Choudhary, Independent Director

B.Com, LL. B and qualified as Solicitor from Bombay Incorporated Law Society and Law Society of England and Wales, has vast experience in the field of law for more than a decade. He is engaged in practice of Law specializing in Media and Entertainment, Corporate and Commercial laws, real estate and litigation and arbitration.

HISTORY

1964 Year of Incorporation.

1967 Listed on Bombay Stock Exchange.

1986 Change in Management comprising new team of Rajesh S. Jain and Shailesh S. Jain.

1994 Setup Industrial Transformers manufacturing facility at Jalgaon

1996 Increase in capacity of Transformer manufacturing capacity from 900MVA to 3,000MVA.

1997 Setup Project Division for construction of Sub-station projects on turnkey basis.

1997 Increase in Transformer manufacturing capacity to 7,500MVA.

1999 Started state-of-the-art facility at Thane for manufacturing of electronic energy meters.

2000 Setup state-of-the-art facility for manufacturing electronic energy meters in Dadra.

2001 Setup International Business Division.

2004 Setup Distribution Transformer manufacturing facility at Jalgaon.

2005 Ventured into Power Generation Business.

2006 Increased Transformer manufacturing capacity to 10,000MVA.

2006 Started manufacturing of Active Harmonic Filters.

2007 Formed an International Advisory Board on Technology and setup a Govt. recognised R and D centre.

2007 Setup EMCO Foundation.

2007 Ventured into Renewable Energy.

2007 Inauguration of 'Knowledge Centre'- a new training centre for staff.

2007 Acquired Transmission Line Company.

2008 Increased Transformer manufacturing capacity to 20,000 MVA.

2008 Acquired a coal mine in Indonesia.

2008 Formed a JV with Edison Group for Transformer business in South Africa.

2008 Honored with a coveted CII HR excellence Award for 'Commendation for strong Commitment to HR excellence'.

2008 Projects Division received ISO 9001:2000 Certification for its On-site and Off-site operations.

2009 Ranked 9th as per Total Income in the Power Equipment Sector by Dun and Bradstreet's India's Top 500 Companies.

2009 New Fabrication facility for manufacturing tanks at Jalgaon

2010 Successful Short Circuit testing of 315 MVA, 220kV class Generator Transformer at KEMA, The Netherlands.

2010 ISO/ IEC 27001:2005 Certification awarded for Information Security Management System (ISMS) by BVC to IT Department.

2011 Successful Short Circuit Testing of 315 MVA, 400/220/33 kV ICT at KEMA, The Netherlands

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.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

CTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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

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

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

RATING EXPLANATIONS

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

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

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