MIRA INFORM REPORT

Report Date :

01.12.2012

IDENTIFICATION DETAILS

Name :	UB ENGINEERING LIMITED
Registered Office :	Sahyadri Sadan, Tilak Road, Pune-411030, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.01.1970
Com. Reg. No.:	11-014509
Capital Investment / Paid-up Capital :	Rs.170.670 Millions
CIN No.: [Company Identification No.]	L32109MH1970PLC014509
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Service Provider of encompasses EPC Projects, Infrastructure, On-site fabrication of structures, Installation, Testing and Commissioning of Electrical and Mechanical Equipments, Piping etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 5200000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of UB Group. It is a well established company having satisfactory track. Financial position of the company appears to be sound and healthy. There appears some dip in the revenue earned from operations and huge dip in the profitability during 2012. However, trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loans = LBBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 2011

Rating Agency Name	ICRA
Rating	Short Term, Non-Fund Based Facilities = A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	March 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office / Head Office :	Sahyadri Sadan, Tilak Road, Pune - 411030, Maharashtra, India
Tel. No.:	91-20-40161700/24333722
Fax No.:	91-20-40161711 / 24338887
E-Mail :	hrd@ubengg.in secl@ubengg.in
Website :	http://www.ubengineering.com
Regional Office:	Located At: · New Delhi · Kolkata
Overseas Office :	Flat No. 505, Plot No. 22, Al Taif Street, Salaam, Khartoum-Sudan
Tel. No.:	00249 0154988926
E-Mail :	sudan@ubengg.in

DIRECTORS

As on 31.03.2012

Name :	Mr. S. D. Lalla
Designation :	Chairman
Name :	Mr. J. K. Sardana
Designation :	Managing Director
Date of Birth/Age :	56Years
Qualification :	B. Tech (Mechanical)
Experience :	35 Years
Name :	Mr. A. Harish Bhat
Designation :	Director
Qualification :	B.Com, A.C.A.
Experience :	Mr. A. Harish Bhat has over 3 decades of experience in finance, accounts, banking and taxation and has held various important positions in Listed Companies, MNC and in the UB Group.
Directorships held in other Companies :	· City Property Maintenance Company (Bangalore) Limited · Kingfisher Finvest India Limited · Kingfisher Aviation Training Limited. · McDowell Holdings Limited · Ramanreti Investments and Trading Company Limited · United Alcobev Limited · UB Infrastructure Projects Limited · UB Infrastructure Limited · United Breweries (Holdings) Limited · Shaw Wallace Breweries Limited · Yenkay Associates Private Limited · UB Ostan (India) Private Limited
Name :	Mr. N. Srinivasan
Designation :	Director
Qualification :	B.Com, C.A.
Experience :	Mr. N. Srinivasan has experience over 5 decades in the field of finance, accounts and audit and was senior partner in Fraser and Ross and Deloitte Haskins and Sells, Chennai.
Directorships held in other Companies :	· United Breweries (Holdings) Limited · The India Cements Limited · India Cements Capital Limited · GATI Limited · Ador Fontech Limited · Essar Shipping Limited · McDowell Holdings Limited. · Tractors and Farm Equipment Limited · The United Nilgiri Tea Estates Company Limited · TAFE Motors and Tractors Limited
Name :	Mr. K. K. Rai
Designation :	Director
Qualification :	B.A., C.A.I.I.B
Experience :	Mr. K.K. Rai has experience over 4 decades. He held important position in Vijaya Bank and was Executive Director of Allahabad Bank.
Directorships held in other Companies :	· Techno Electric and Engineering Company Limited · V S T Tillers Tractors Limited · ISMT Limited
Name :	Mr. B. Viswanath
Designation :	Director
Name :	Mr. B.K. Agarwal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ravi Nedungadi
Designation :	President and Chief Financial Officer - The UB Group
Name :	Mr. V. M. Pendse
Designation :	Company Secretary
Name :	S.G. Patankar
Designation :	Vice President (Commercial)
Name :	B. Chakrabarty
Designation :	Senior Vice President (Operations)
Name :	N.C. Pandey
Designation :	Senior Vice President (Electrical Division)
Name :	B.S. Gautam
Designation :	Business Head (Electrical Division)
Name :	Rajender Kr. Gaur
Designation :	Head-Execution (Electrical Division)
Name :	A.K. Ghosh
Designation :	Vice President (Projects)
Name :	V.M. Sastry
Designation :	Vice President (Projects)
Name :	Mr. Krishnan V. Nair
Designation :	Vice President-BD (EPC)
Name :	S. Venkata Venu
Designation :	Vice President-Head Fab. Shop
Name :	Mr. Roopesh Jha
Designation :	Business Head-Road & Civil Works

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	6953547	40.74
Sub Total	6953547	40.74
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6953547	40.74
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2825	0.02
Financial Institutions / Banks	1555	0.01
Insurance Companies	335426	1.97
Sub Total	339806	1.99
(2) Non-Institutions
Bodies Corporate	1145649	6.71
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	6423363	37.64
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2044621	11.98
Any Others (Specify)	159963	0.94
Non Resident Indians	159963	0.94
Sub Total	9773596	57.27
Total Public shareholding (B)	10113402	59.26
Total (A)+(B)	17066949	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	17066949	0.00

BUSINESS DETAILS

Line of Business :

Service Provider of encompasses EPC Projects, Infrastructure, On-site fabrication of structures, Installation, Testing and Commissioning of Electrical and Mechanical Equipments, Piping etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

NKGSB Co-Operative Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans from banks - Repayable after one year	558.980	237.880
Loans from others - Repayable after one year	3.760	4.800
Cash Credits from Banks	541.460	341.930
Total	1104.200	584.610
Term Loan from Bank of Rs.262.500 Millions is secured by exclusive charge on Fixed Assets. Further, Term Loan from Bank of Rs,385.000 Millions is secured by exclusive charge on Current and Fixed Assets of Fabrication Unit at Chattisgarh Other Term loans from Consortium Banks are secured by (i) Pari pasu charge, on all the Fixed and Current Assets of the Company. (ii) Corporate Guarantees / Comfort Letter from United Breweries (Holdings) Limited Loans from Others, is Secured by hypothecation of specific asset. Cash Credits from Consortium Banks are secured by (i) Pari pasu charge, on all the Fixed and Current Assets of the Company. (ii) Corporate Guarantees / Comfort Letter from United Breweries (Holdings) Limited
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Loans from Promoter Group Company	90.000	90.000
Total	90.000	90.000

Banking Relations :	--
Auditors :
Name :	V.P. Mehta and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates Companies :	· United Breweries (Holdings) Limited, Bangalore · UB Infrastructure Projects Limited, Bangalore · Kingfisher Finvest India Limited, Bangalore · UB Ostan (India) Private Limited, Mumbai
Subsidiary Companies :	· UB Infrastructure Limited, Pune · Bhopal-Berasia-Sironj Highway Private Limited, New Delhi (Step down subsidiary) · Sendhwa-Khetia Road Development Company Private Limited, Pune (Step down subsidiary)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50550000	Equity Shares	Rs.10/- each	Rs.505.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17066949	Equity Shares	Rs.10/- each	Rs.170.670 Millions

The reconciliation of number of shares outstanding is set out below :

Particulars	31.03.2012
Equity shares at the beginning of the year	17,066,949
Equity shares at the end of the year	17,066,949

Holding of number of shares more than 5 % outstanding is set out below :

Particulars	Number of shares held	% holding in that class of shares
United Breweries (H) Limited.	6,345,554	37.18 %

Rights of Shareholder

Every Shareholder is entitled to Dividend when declared. The other rights are governed by the Articles of Association of the Company and the Companies Act, 1956.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		170.670	170.670	170.670
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1143.600	1110.260	845.730
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1314.270	1280.930	1016.400
LOAN FUNDS
1] Secured Loans		1104.200	584.610	566.880
2] Unsecured Loans		90.000	90.000	90.000
TOTAL BORROWING		1194.200	674.610	656.880
DEFERRED TAX LIABILITIES		0.000	0.000	5.390
TOTAL		2508.470	1955.540	1678.670
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		820.010	731.190	481.790
Capital work-in-progress		423.040	63.970	17.980
INVESTMENT		16.600	1.300	0.200
DEFERREX TAX ASSETS		18.750	18.750	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	557.670	361.470	180.930
	Sundry Debtors	2880.560	3232.310	2061.840
	Cash & Bank Balances	295.480	393.160	504.190
	Other Current Assets	37.430	28.390	38.520
	Loans & Advances	697.760	517.520	321.150
Total Current Assets		4468.900	4532.850	3106.630
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1796.630	1787.900	1315.800
	Other Current Liabilities	1208.480	1462.920	526.340
	Provisions	233.720	141.700	85.790
Total Current Liabilities		3238.830	3392.520	1927.930
Net Current Assets		1230.070	1140.330	1178.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2508.470	1955.540	1678.670

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	5318.430	6108.050	5267.980
		Other Income	24.510	17.590	39.930
		TOTAL (A)	5342.940	6125.640	5307.910
Less	EXPENSES
		Contract Costs	4714.230	5332.170
		Changes in inventories of Work In Progress	(183.830)	(98.180)	4787.180
		Employee benefits expense	197.310	154.080
		Other expenses	195.480	155.600
		TOTAL (B)	4923.190	5543.670	4787.180
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		419.750	581.970	520.730
Less	FINANCIAL EXPENSES (D)		204.000	143.430	81.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		215.750	438.540	439.130
Less/ Add	DEPRECIATION/ AMORTISATION (F)		90.920	61.900	37.540
	PROFIT BEFORE TAX (E-F) (G)		124.830	376.640	401.590
Less	TAX (H)		91.500	112.110	94.780
	PROFIT AFTER TAX (G-H) (I)		33.330	264.530	306.810
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		420.140	155.610	0.000
	BALANCE CARRIED TO THE B/S		453.470	420.140	155.610
	EARNINGS IN FOREIGN CURRENCY
		Overseas Contracts	19.000	17.310	430.330
	TOTAL EARNINGS		19.000	17.310	430.330
	Earnings Per Share (Rs.)		1.95	15.50	17.98

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	1199.300	1487.500
Total Expenditure	1113.000	1387.300
PBIDT (Excl OI)	86.300	100.200
Other Income	2.800	1.500
Operating Profit	89.100	101.700
Interest	49.500	85.400
Exceptional Items	0.000	0.000
PBDT	39.600	16.300
Depreciation	24.500	30.900
Profit Before Tax	15.100	(14.600)
Tax	4.900	(4.700)
Provisions and contingencies	0.000	0.000
Profit After Tax	10.200	(9.900)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	10.200	(9.900)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.62	4.32	5.78
Net Profit Margin (PBT/Sales)	(%)	2.35	6.17	7.62
Return on Total Assets (PBT/Total Assets}	(%)	2.36	7.15	11.19
Return on Investment (ROI) (PBT/Networth)		0.09	0.29	0.40
Debt Equity Ratio (Total Liability/Networth)		3.37	3.18	2.54
Current Ratio (Current Asset/Current Liability)		1.38	1.34	1.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	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 involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PERFORMANCE OF THE COMPANY

During the year, the company recorded a turnover of Rs.5318.000 Millions as compared to Rs.6108.000 Millions of the previous year. The profitability was lower due to adverse economic condition faced by infrastructure sector, competitive pressures, higher operating and finance cost. The funds requirements of the company have increased mainly due to the longer working capital cycle caused by delay in realizing the receivables with consequent delay in honoring the commitments to lenders. The company has successfully completed installation of Fabrication shop at Chhattisgarh and trial production has commenced in July, 2012. They are awaiting the last statutory permission which they are hopeful of receiving shortly.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY OVERVIEW:

The sphere of operations of the Company comprising infrastructure and industrial projects are directly related to sectors like power generation and distribution, oil and gas, petroleum, steel, cement, fertilizers etc.

On the backdrop of global uncertainties the Indian Economy slowed down during the year witnessing impact in all major sectors.

During Current fiscal 2012-13, inflationary conditions, competition, high interest rates and tight liquidity will continue to prevail putting pressure on margins.

Government of India’s initiatives for infrastructure during 12th Five Yearly Plan will offer growth opportunities in the long run with sustained operations.

REGULATORY ENVIRONMENT:

The company being engaged in the business of providing integrated design engineering, procurement, construction and project management services for infrastructure and energy sector in terms of construction contract, no specific regulations govern the business of the Company. However, for execution of work the Company is required to obtain licenses and required approvals.

BUSINESS ANALYSIS:

The Company operates in two primary Business Segments viz. Mechanical Erection / Engineering Procurement and Construction (EPC) and EPC Electrical.

Implementation of sustained efficiency programme across the enterprise, strong recruitment, training and appraisal policies will improve and strengthen the operational efficiencies further.

Erection Division-

Erection Division of the Company had been the main stay of the operations since inception. With the extensive and vast experience in Electro-Mechanical Installation work, the Company has been successful in bagging prestigious contracts as well as Repeat Orders from reputed clients. In the past, Erection Division has been operating not only in India but also in Middle East and African Countries for past four decades.

EPC Mechanical Division-

Company’s concern for on time project completion and better control on timely material supplies prompted establishment of Engineering, Procurement and Construction Division (EPC Mechanical). The Division is focused strongly on execution of projects in Steel, Cement, Power, Refineries Fertilizers, Oil and Gas, Water, Effluent Treatment and other sectors.

EPC Electrical Division-

Company’s EPC Electrical Division undertakes business for HV and EHV Sub-Station upto 500 KV Class in India and associated transmission lines right from the conceptual stage to commissioning. The Division also undertakes Rural Electrification projects on turnkey basis.

Overhauling and Maintenance Services (O and M)-

Allied to man field of operations, Company also offers Overhauling and Maintenance services for Power Plants, since 1980. Company has provided O and M services for more than 30,000 MW generating capacity and has reflected consistent workmanship, quality and widespread industrial acceptance.

Fabrication Unit-

The proposed Fabrication Unit at Chattisgarh is in synergy with their present power plant construction business and represents upward move in value chain.

CONTINGENT LIABILITIES :

(a) Guarantees and Statutory Dues:

Rs. In Millions

Particulars	31.03.2012	31.03.2011
Bank Guarantees / Counter Guarantees issued and Letters of Credit outstanding (Bank Guarantees are secured by Charge on Fixed Assets and Current Assets of the Company.)	4376.060	3825.310
Bills discounted	25.220	122.460
Corporate Guarantees / Counter Guarantees
--- Group Company	650.000	1060.000
--- Government of India(Customs)	54.310	54.310
--- Others	54.800	50.25
Sales tax demands of various years in different states, under appeal against which Rs.0.700 Million (Previous year – Rs.0.700 Million) has been paid and included under Other Deposits. Company’s Sales Tax assessments are pending in various states. The additional liability, if any, on completion of assessments, if accepted, will be considered in accounts.	156.740	165.710
Claims against the Company not acknowledged as debts	88.130	85.000
Disputed Income Tax Demand under appeal	5.420	5.420
Estimated amount of Capital Commitments to be executed on Capital account and not provided for	52.020	137.790

With regard to disputed Sales Tax / Income Tax demands pending in various states, as the Management is of the view that demands are not sustainable and hence no provision is presently considered necessary.

b) The re-opening of the assessment for the assessment year 1995-96 has been questioned on appeal at various stages. The Company approached for a settlement under KVSS and deposited Rs.11.000 Millions (Previous year – Rs.11.000 Millions), which is included under loans and advances. As per directives of the Appellate Authority, the matter has been remitted to the Assessing Officer for re-doing the assessment.

c) The Company had filed arbitration proceedings against Bharat Heavy Electricals Limited (BHEL) in the year 2003 to recover Rs.366.350 Millions (Previous year – Rs.366.350 Millions) with interest, against which BHEL had filed counter-claims of Rs.607.470 Millions (Previous year – Rs.607.470 Millions). The arbitration award is awaited.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2012

Rs. In Millions

Particulars	Quarter Ended 30.06.2012
1. Income From Operations
A) Net Sales/Income From Operations (Net Of Excise Duty)	1197.300
B) Other Operating Income	2.000
Total Income From Operations (Net)	1199.300
2. Expenses
A) Contract Cost	1212.100
B) Changes In Inventories Of Finished Goods, Work In Progress & Stock In Trade	(177.100)
C) Employee Benefits Expense	44.700
D) Depreciation And Administration Expense	24.500
E) Other Expenses	33.300
Total Expenses	1137.500
3. Profit From Operations Before Other Income, Finance Cost and Exceptional Items	61.800
4. Other Income	2.800
5. Profit From Ordinary Activities Before Finance Cost and Exceptional Items	64.600
6. Finance Costs	49.500
7. Profit Before Ordinary Activities After Finance Costs But Before Exceptional Items	15.100
8. Exceptional Items	-
9. Profit From Ordinary Activities Before Tax	15.100
10. Tax Expenses	4.900
11. Net Profit From Ordinary Activities After Tax	10.200
12. Extraordinary Items	-
13. Net Profit For The Period	10.200
14. Paid-Up Equity Share Capital (Face Value Of Rs.10 Each)	170.670
15. Reserves Excluding Revaluation Reserves As Per Balance Sheet Of Previous Accounting Year	-
16. Basic And Diluted Earnings Per Share (Eps) Before and After Extraordinary Items (not Annualized)	0.60
A Particulars Of Shareholding
1. Pubic Shareholding:
-No. of Shares	10,113,402
- Percentage of Shareholding	59.26%
2. Promoter and Promoter Group Shareholding
A) PLEDGED / ENCUMBERED
-No. of Shares	6,721,971
- Percentage of Shares(As A % of The Total Shareholding of Promoter and Promoter Group)	96.67%
- Percentage Of Shares(As A % Of The Total Share Capital Of The Company)	39.39%
B) NON-ENCUMBERED
-No. of Shares	231,576
- Percentage Of Shares (As A % Of The Total Shareholding Of Promoter And Promoter Group)	3.33%
- Percentage Of Shares (As A % Of The Total Share Capital Of The Company)	1.35%
B Investor Complaints
Pending At The Beginning Of The Quarter	Nil
Received During The Quarter	1
Disposed Of During The Quarter	1
Remaining Unresolved At The End Of The Quarter	Nil

SEGMENT REPORTING

Particular	QUARTER ENDED 30.06.2012
	Mechanical	Electrical	Total
REVENUE	11,566	427	11,993
Capital Employeed (Segment Assets -Segment Liabilities)	18,933	7,542	26,475

NOTES:

1. The Company operates in two Primary Business Segments i.e. Mechanical and Electrical Contracts.

2. Deferred Tax Asset / Liability will be considered in the Annual Accounts.

3. (i) Bank Guarantees invoked by Customers Rs.208.300 Millions (including Rs.191.700 Millions invoked in August 2012, which is being contested),

(ii) Devolvement of Letter of Credit of Rs. 259.700 Millions

.

4. The Company has closed it's branch in Dubai following cessation of operations.

5. The excess Remuneration of the Managing Director applicable to the current quarter is Rs. 0.747 Million, which require the approval of the shareholders and Central Government.

6. Figures of previous periods / year have been regrouped, whereever necessary to conform to the current period's classification.

7. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at it's meeting held on 10th August, 2012.

Fixed Assets:

• Land Freehold
• Land Leasehold
• Building
• Plant and Machinery
• Furniture and Fixtures
• Electrical Installation
• Vehicles

AS PER WEBSITE DETAILS:

PROFILE:

Subject is the flagship Company of UB Group’s Engineering Business.

Subject commenced its operations in 1963 as a partnership firm (then known as Western India Erectors) started by two foresighted technocrats and went public in the year 1972.

The Company came under the UB Umbrella in 1988.

The sphere of subject activities encompasses EPC Projects, Infrastructure, On-site fabrication of structures, Installation, Testing and Commissioning of Electrical and Mechanical Equipments, Piping etc. for large Industrial projects such as Power, Refineries, Steel, Cement, Fertilizer, Petrochemical and Desalination Projects. The Company enjoys pre-qualification credentials in Electrical Sub-station projects upto 400 KV in India. The Company also undertakes Overhauling and Maintenance of Operating Plants in varied Industries, both in India and Abroad.

Subject overseas operations have covered Algeria, Bahrain, Bangladesh, Iran, Iraq, Jordan, Kenya, Kuwait, Nepal, Nigeria, Oman, Qatar, Saudi Arabia, Singapore, Sudan and UAE.

The phenomenal growth of subject is due to its proven skills in Project Management, Consistency in Quality, EHS implementation and completion of projects on time. The experience and expertise of subject is reflected in the form of repeat orders from practically all reputed clients, Indian as well as overseas.

To provide quality service to customers, subject operates through following strategic business Units:

• Erection Division
• EPC Division - Mechanical
• EPC Division - Electrical
• Overhauling And Maintenance Division

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.54.53
UK Pound	1	Rs.87.48
Euro	1	Rs.70.89

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		51

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.