MIRA INFORM REPORT

Report Date :

18.12.2012

IDENTIFICATION DETAILS

Name :	ERA INFRA ENGINEERING LIMITED
Registered Office :	370-371/2, Sahi Hospital Road, Jangpura, Bhogal, New Delhi – 110014
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.09.1990
Com. Reg. No.:	55-041350
Capital Investment / Paid-up Capital :	Rs. 363.655 Millions
CIN No.: [Company Identification No.]	L74899DL1990PLC041350
TAN No.: [Tax Deduction & Collection Account No.]	DELE00986G
PAN No.: [Permanent Account No.]	AAACE1268K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Construction Activity.
No. of Employees :	4111 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 71000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is the flagship Company of the Era Group. It is a well established company having good track. There appears some dip in the profits earned during 2012. However, financial position of the company appears good. Trade relations are reported as decent. Business is active. Payments terms are regular and as per commitment. The company can be considered good 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	CARE
Rating	Long Terms Bank Facilities = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	03.08.2012

Rating Agency Name	CARE
Rating	Short Terms Bank Facilities = A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	03.08.2012

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 :	370-371/2, Sahi Hospital Road, Jangpura, Bhogal, New Delhi – 110014, India
Tel. No.:	91-11-43637000
Fax No.:	91-11-24378784
E-Mail :	cs.mca@eragroup.in
Website :	http://www.eragroup.in
Head Office :	C-56/41, Sector-62, Noida - 201 301, Uttar Pradesh India
Tel. No.:	91-120-4145000
Fax No.:	91-120-4145030
Corporate Office :	153, Ground Floor, Okhla Industrial Estate, Phase III, New Delhi- 110020, India
Tel. No.:	91-11-40637000
Fax No.:	91-11-40637070

DIRECTORS

As on 31.03.2012

Name :	Mr. H S Bharana
Designation :	Chairman and Managing Director
Name :	Tulsi Dass Arora
Designation :	Whole-Time Director
Date of Birth/Age :	03.08.196
Qualification :	M. Tech and MBA
Experience :	24 Years
Date of Appointment :	14.08.2012
Name :	Mr. Arvind Pande
Designation :	Director
Date of Birth/Age :	07.09.1942
Qualification :	B. Sc, B.A. (Hons), M.A. (Eco) from Cambridge University, UK
Experience :	40 years
Date of Appointment :	19.03.2005
Directorship in other Companies :	• Sandhar Technologies Limited • Bengal Aerotropolis Projects Limited • Titagarh Wagons Limited
Name :	Mr. S D Sharma
Designation :	Director
Name :	Mr. S. D. Kapoor
Designation :	Director
Name :	Mr. A K Mehta
Designation :	Director
Date of Birth/Age :	18.12.1949
Qualification :	Pre Engineering
Experience :	42 years
Date of Appointment :	20.08.1994
Directorship in other Companies :	• Era E-Zone (India) Limited • ZS Exports(India) Limited

KEY EXECUTIVES

Name :	Mr. Rajiv Kumar
Designation :	Company Secretary
Name :	Mr. Joy Saxena
Designation :	Group Chief Financial Officer
Name :	Mr. Ajay Kumar Mishra
Designation :	President
Name :	M.N. Sumesh
Designation :	Chief Operating Officer
Name :	Mr. Rakesh Markhedkar
Designation :	Chief Executive Officer
Name :	Mr. Yogesh Verma
Designation :	President and Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	96644277	53.15
Any Others (Specify)	12998710	7.15
Directors/Promoters & their Relatives & Friends	12998710	7.15
Sub Total	109642987	60.30
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	109642987	60.30
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1989127	1.09
Financial Institutions / Banks	5750120	3.16
Foreign Institutional Investors	7254175	3.99
Sub Total	14993422	8.25
(2) Non-Institutions
Bodies Corporate	48384020	26.61
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	4671380	2.57
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	590971	0.33
Any Others (Specify)	3544860	1.95
Non Resident Indians	347946	0.19
Clearing Members	305682	0.17
Hindu Undivided Families	266232	0.15
Foreign Corporate Bodies	2625000	1.44
Sub Total	57191231	31.45
Total Public shareholding (B)	72184653	39.70
Total (A)+(B)	181827640	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)	181827640	0.00

BUSINESS DETAILS

Line of Business :

Construction Activity.

GENERAL INFORMATION

Customers :

· Adani Group

· Alps Industries Limited

· Bajaj Hindustan Limited

· Birla tyres

· Cadila Pharmaceuticals Limited

· Caparo Engineering India Private Limited

· Hindustan National Glass and Industries Limited

· Jindal SAW Limited

· Lanco Infratech Limited

· Larsen and Toubro Limited

· Magal Engineering Limited

No. of Employees :

4111 (Approximately)

Bankers :

· Union Bank of India,Industrial Finance Branch, New Delhi, India

· State Bank of India, CAG, Connaught Place, New Delhi, India

· Bank of India, Parliament Street, New Delhi, India

· Canara Bank, Connaught Place, New Delhi, India

· Punjab National Bank, Connaught Place, New Delhi, India

· IDBI Bank Limited, Red Cross Road, New Delhi, India, India

· Bank of Maharashtra, South Extension, New Delhi, India

· Corporation Bank, Connaught Place, New Delhi, India

· Indian Overseas Bank, Nehru Place, New Delhi, India

· Oriental Bank of Commerce, Connaught Place, New Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Term Loan from Banks	11218.100	8499.260
Equipment Finance
From banks	498.692	529.806
From others	746.787	910.277
Other Loans and Advances	26.178	26.178
External Commercial Borrowing	3567.089	444.400
Non-Convertible Debentures	3240.000	3615.000
Term Loan from Banks	(2375.000)	(281.250)
Equipment Finance	(736.021)	(823.058)
External Commercial Borrowing	(59.220)	0.000
Non-Convertible Debentures	(580.000)	0.000
Short Term Borrowings
Borrowings From Banks	15189.526	12446.997
Total	30736.131	25367.610
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Foreign Currency Convertible Bonds	0.000	1782.044
Foreign Currency Convertible Bonds	0.000	(1782.044)
Short Term Borrowings
Loans Repayable on Demand - From Banks and Financial Institutions	2500.000	1500.000
Total	2500.000	1500.000

Banking Relations :	--
Auditors :
Name :	G. C. Sharda and Company Chartered Accountants
Direct Subsidiary Companies :	· Victor Buildwell Private Limited · Style and Smile Buildwell Private Limited (upto 25.09.2011) · Era IT- Zone Private Limited (upto 01.10.2011) · Era Infrastructure (India) Limited · Era T and D Limited · Golden Annum Holdings Limited · Boconero Limited, Era and Partners Company. LLC · Bragi Developers Private Limited · Zedek Realtors Private Limited · Douce Realtors Private Limited (upto 25.09.2011) · Paulo Realtech Private Limited · Yarikh Realtors Private Limited · Dehradun Highways Project Limited · Haridwar Highways Project Limited · Bareilly Highways Project Limited · Rampur Highways Project Limited · Era Khandwa Power Limited
Step Subsidiary Companies :	· ARK Transmission and Distribution Limited · ARK Vidhyut Urja Limited
Associates :	· Gwalior Bypass Project Limited · Hyderabad Ring Road Project Private Limited · West Haryana Highways Project Private Limited · Era Energy Limited · Era Buildsys Limited
Joint Ventures	· Era-Patel-Advance-Kiran · Era-Patel-Advance · Induni-Era · KMB-Era · Rani-Era · Era - Infra · Era-Infra Buildsys

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs. 2/- each	Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
181827640	Equity Shares	Rs.2/- each	Rs.363.655 Millions

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		363.655	363.655	358.333
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17556.767	17012.892	14212.336
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17920.422	17376.547	14570.669
LOAN FUNDS
1] Secured Loans		30736.131	25367.610	21069.851
2] Unsecured Loans		2500.000	1500.000	3750.352
TOTAL BORROWING		33236.131	26867.610	24820.203
DEFERRED TAX LIABILITIES		2297.428	1862.323	1584.442
TOTAL		53453.981	46106.480	40975.314
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16483.071	14149.033	13800.266
Capital work-in-progress		892.112	10.622	985.338
INVESTMENT		5874.145	5569.322	2852.624
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14336.604	12041.499	9082.947
	Sundry Debtors	14883.210	13539.562	9337.306
	Cash & Bank Balances	3127.717	4383.914	4661.361
	Other Current Assets	67.790	44.742	48.784
	Loans & Advances	8600.772	6868.864	5740.535
Total Current Assets		41016.093	36878.581	28870.933
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3876.294	4552.903	4022.000
	Other Current Liabilities	6513.565	6531.381	1389.016
	Provisions	421.581	416.794	128.586
Total Current Liabilities		10811.440	11501.078	5539.602
Net Current Assets		30204.653	25377.503	23331.331
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Foreign Currency Monetary Item Translation Diff. A/c		0.000	0.000	5.755
TOTAL		53453.981	46106.480	40975.314

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	43492.331	38289.016	34154.682
		Other Income	347.621	426.631	250.191
		TOTAL (A)	43839.952	38715.647	34404.873
Less	EXPENSES
		Direct Contract Expenses	27801.488	28995.874
		Purchase of stock-in-trade	5264.229	179.011
		Employee Benefit Expenses	1496.233	1326.030	28112.374
		Other Expenses	668.090	614.484
		Extraordinary Items	412.274	0.000
		TOTAL (B)	35642.314	31115.399	28112.374
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8197.638	7600.248	6292.499
Less	FINANCIAL EXPENSES (D)		4434.096	3187.964	2564.182
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3763.542	4412.284	3728.317
Less/ Add	DEPRECIATION/ AMORTISATION (F)		973.635	840.129	715.127
	PROFIT BEFORE TAX (E-F) (G)		2789.907	3572.155	3013.190
Less	TAX (H)		1179.633	1103.817	219.112
	PROFIT AFTER TAX (G-H) (I)		1610.274	2468.338	2794.078
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7813.850	5782.854	3391.855
Less	APPROPRIATIONS
		Transfer to General Reserve	161.028	246.800	279.000
		Transfer to Debenture Redemption Reserve	104.500	106.000	39.000
		Proposed Dividend	0.000	72.731	72.720
		Corporate Dividend Tax	84.530	11.799	12.359
		Dividend and Dividend Tax (Previous years)		0.014	0.000
	BALANCE CARRIED TO THE B/S		9074.066	7813.850	5782.854
	EARNINGS IN FOREIGN CURRENCY
		Management Fee	NA	NA	5.165
	TOTAL EARNINGS		NA	NA	5.165
	IMPORTS
		Raw Materials	43.234	18.783	165.327
		Stores & Spares	19.151	2.515	6.804
		Capital Goods	230.061	779.638	520.352
	TOTAL IMPORTS		292.446	800.936	692.483
	Earnings Per Share (Rs.)		11.12	13.59	14.47

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	10371.360	9160.200
Total Expenditure	8394.090	7045.140
PBIDT (Excl OI)	1977.270	2115.060
Other Income	104.210	61.580
Operating Profit	2081.480	2176.640
Interest	1198.540	1352.920
Exceptional Items	0.000	0.000
PBDT	882.940	823.720
Depreciation	258.160	270.040
Profit Before Tax	624.780	553.680
Tax	198.280	179.740
Provisions and Contingencies	0.000	0.000
Profit After Tax	426.500	373.940
Extraordinary Items	(220.150)	111.160
Prior Period Expenses	0.000	0.000
Other Adjustment	0.000	0.000
Net Profit	206.350	485.100

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.67	6.38	8.12
Net Profit Margin (PBT/Sales)	(%)	6.41	9.33	8.82
Return on Total Assets (PBT/Total Assets}	(%)	4.85	7.00	7.06
Return on Investment (ROI) (PBT/Networth)		0.16	0.21	0.21
Debt Equity Ratio (Total Liability/Networth)		2.46	2.21	2.08
Current Ratio (Current Asset/Current Liability)		3.79	3.21	5.21

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	Yes
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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
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	Yes
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

LITIGATIONS DETAILS

The High Court of Delhi at New Delhi

ARB.P 306/2011

M/S EMERALD MINERAL EXIM PRIVATE LIMITED….. Petitioner

Through: Mr. Niraj Singh, Advocate.

Versus

M/S ERA INFRA ENGINEERING LIMITED…. Respondent

Through: Ms. Nilama Banerjee, Advocate.

CORAM:

HON’BLE MS. JUSTICE REVA KHETRAPAL

ORDER

23.11.2012

The Honorable Judge is not Holding the Court today.

Renotify on 1^st March, 2013

FINANCIAL PERFORMANCE

The turnover of the Company for the year ended 31 March, 2012, reported an increase of 13.24 % rising to Rs. 43839.952 Millions from Rs. 38715.647 Millions in the previous year.

Profit before depreciation and taxation was Rs. 4175.816 Millions and after providing Rs. 973.635 Millions towards depreciation, Extra-Ordinary Item on account of Foreign Currency Translation Loss of Rs. 412.274 Millions and Rs. 1179.634 Millions towards tax, the net profit amounts to Rs. 1610.274 Millions.

BUSINESS PERFORMANCE

The flagship company of the Era Group, Subject is amongst one of the fastest growing infrastructure companies in India with a wide sectoral presence. Continuously striving to foray into fast-growing infrastructure segments, across India and outside, the Company has diverse and extensive execution experience across key sectors of growth.

Armed with extensive engagement with prestigious clients across both public as well as private sector, Era Infra Engineering is a central player in key infrastructural development that is instrumental in building the lifeline of tomorrow.

The Company has completed various projects since inception for renowned clients like NTPC, PGC, NHPC, RVNL, BHEL, IRWO, NBCC, PWD, NALCO, RVNL, Airport Authority of India, Delhi Metro Rail Corporation Limited, Central Public Works Departments to name a few. The company has received repeat orders from reputed clients like NTPC, Gujarat Ambuja, Rajasthan Spinning, Birla Tyres, Indian Glycols, National Dairy Development Board, Bharat Heavy Electrical Limited etc. The key factor that has contributed to the company's success is in-house technical expertise and strong project management capabilities, which ensures timely execution of the projects within budgeted costs and continued emphasis on maintaining quality standards.

The Company is professionally managed with well-qualified and experienced personnel in all areas including engineering, finance and administration combined with a full-fledged Enterprise Resource Planning (ERP) and MIS system. As on 31 March, 2012, the Company has on its roll over Four Thousand One Hundred and Eleven (4111) employees, which includes around One Thousand experienced and skilled engineers.

The Order Book of Company has increased from Rs. 10,422 Cr. (approx.) in 2011 to Rs. 14,137.00 Cr. (approx.) as on date, for project across sectors to be implemented over a period of next two to three years. All ongoing projects are monitored on a regular basis by the senior management based at Delhi and Noida offices. The company has aggressively invested in an in house ERP system, which encompasses different areas of efficient construction management with greater efficiency, accuracy and predictability.

In tandem with the growth momentum of the earlier years, The company has strengthen its position in the market by stepping in diversified segments, in this financial year they are focusing more on the complex projects with longer duration which will truly portrays the in-built capability of The company.

A few of the projects for this financial year are as follows:

• Infrastructure: In infrastructure space They have received orders from Delhi Metro Rail Corporation Ltd. (DMRC) for “Design and Construction of Tunnel by Shield TBM and Lal Qila and Kashmere Gate Stations by Cut and Cover method between Jama Masjid and Kashmere Gate for underground works under the Delhi MRTS project of Phase-III.” Era bagged one of the biggest project from National Highway Authority of India for four laning of Rampur-Kathgodam section of NH-87 from 0.00 KM to 88.00 KM in states of Uttar Pradesh and Uttarakhand.

• Power: Bagged projects in five districts of Madhya Pradesh for Supply, Erection, Testing and Commissioning of New 11 KV and LT Lines and 11/0.4 KV Distribution Substations under Rajiv Gandhi Grameen Vidyutikaran Yojana. A Project from Rajasthan Rajya Vidyut Prasaran Nigam Limited Jaipur for “Construction of 1 kV. (Approx.) LILO of 2nd Ckt. of 400 kV D/C Chhabra TPS-Dahara Line at 765 kV GSS Anta and 45 KV (Approx.) 400 kV S/C Line Extending from 765/400 kV Anta GSS to PGCIL’s 400/200 kV Kota GSS (Twin Moose) Transmission Line.”

• Social Infra: Received Work Orders in housing segment from Era Landmarks Limited in Sector-68 and Sector-103, Gurgaon. Bagged project from Ircon International Limited for construction of Officer's Club and Guest House, Supervisor and Worker's Club and Guest House, Senior Sec. and Primary Schools, Technical Trainee and Sports Hostel, Maintenance office, Hospital and Shopping Complex etc. at Lalganj, Raebareli and a project from Soni Infratech Private Limited for Construction of Group Housing “Spire South” at Sector 68, Badshahpur, Sohna Road, Gurgoan, Haryana.

Presently the company has two strategic divisions which help the company in maintaining its growth momentum.

Engineering, Procurement and Construction (EPC) Division: This division is in a growth phase, the order book position has improved considerably over the years and it has bagged orders from prestigious clients like NHAI, NTPC, Airport Authority of India, Delhi Metro Rail Corporation Limited, Naya Raipur Development Authority etc.

The surge in construction activity has led to exponential growth in infrastructure development across the country. This has naturally resulted in an increase in demand in construction activities, raising the potential bar manifold, which in turn has enabled the EPC Division of The company to foray into some of the most lucrative and growing segments of the infrastructure space. This division executes infrastructure development contracts across the spectrum for both external customers as well as for captive consumption.

The division’s business extends across major sectors of infrastructural growth and it broadly encompasses Roads/Highways, Power, TandD, Metro, Aviation, Social Infra, Industrial Refinery.

Through this division, Era Infra Engineering is executing projects for some the biggest names in the industry.

Equipment Management Division (EMD): In today's infrastructure development sector the demand for construction equipments are huge. To tap this huge opportunity and making efficient use of large equipment base the company has started this division. The aim of starting this division is to make revenue by using the equipments in most efficient manner and further to provide the strength to internal execution.

Today the company is a known name in the field of Infrastructure projects contributing to the Infrastructure development of modern India. The Company has transformed from a mere construction company to a major player in the Roads, Bridges, Power sector building, to BOOT and BOT projects. Successful completion of projects in hand is a habit of the company. No major Labour disputes, no Strikes/Labour unrest is a something which speaks about the other good attributes of the company.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC AND INDUSTRY OVERVIEW

The FY 2011-12 for Indian Economy was a year of recovery interrupted. It was a challenging year internationally as well as at domestic level. Macro-economic signals were not very positive. Though India’s Gross Domestic Product (GDP) is estimated to reduce to 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in preceding two years, yet in cross country comparison, India still remains one of highly growing economies.

The performance of broad sectors and sub sectors in key infrastructure areas in 2011-12 was both good and bad. While the tremors of Euro debt crisis, turmoil in Middle East countries, rising Crude Oil prices, destruction in Japan was felt in India, it was also complemented with inflation, rising Dollar prices, adverse market conditions, non-availability of appropriate long term finance, causing many large infrastructure project developers in India, including Era Infra Engineering Limited, to face cash flow pressures. However the road to recovery doesn’t seem to be far ahead.

The real GDP growth is expected to pick up to 7.6% in 2012-13 and 8.6% in 2013-14. Given that fiscal consolidation is back on track, savings and capital formation is likely to start rising. Also the RBI policy rates are expected to be reduced in the back of easing of inflationary pressures. The lowered interest rates will encourage investment activity and have a positive impact on growth.

Roads

In the development process, connectivity is a key component. It is the pillar on which economy grows and development is witnessed. Roads and highways not only connect different production and consumption regions but also open up new markets by gaining access to new consumers and thereby fostering inclusive growth. Roads in India are the most preferred mode of transportation. Currently, India has the world's second largest road system, with 4.1 million km of roads, of which highways regulator National Highway Authority of India's (NHAI) share is 71,722 km, State Highways - 1,54,522 km, Major District Roads and Other District Roads - 25,77,396 km, Rural Roads - 14,33,577 km.

About 60 per cent of freight and 87 per cent of passenger traffic passes on roads. Although National Highways (NH) constitutes only about 1.7 per cent of the road network, they carry 40 per cent of the total road traffic. To augment it, the Government plans to build 7,300 km of roads every year. The current budget highlighted award of contracts to build 8,800 km of roads in 2012-13. For the financial year 2012-13, the ministry and NHAI have awarded road projects of about 1,000 km so far. Together, they awarded 62 projects covering 7,957 km of road projects in 2011-12. This comprised 6,491 km by NHAI (49 projects) and 1,466 km (13 projects) by the ministry through state agencies.

The Government of India has decided to set up an institutional mechanism to oversee contract performance during the construction stage, for the timely completion of projects undertaken in PPP mode. The mechanism will have a two-tier system-Projects Monitoring Unit and Performance Review Unit-and will monitor projects in the post-construction usage stage.

Foreign direct investment (FDI) received in the sector construction activities (including roads and highways) during April 2011 to March 2012 stood at US$ 2,796 million. According to the policy updates from DIPP, 100 per cent FDI under the automatic route is allowed for:

· Support services to land transport like operation of highway bridges, toll roads, and vehicular tunnels.

· Services incidental to transport like cargo handling is incidental to land transport.

· Construction and maintenance of roads and bridges.

· Construction and maintenance of roads and highways offered on build-on-transfer (BOT) basis, including collection of toll.

Policy Initiatives for attracting Private Investment

· NHAI / Government of India (GoI) to provide capital grant up to 40 per cent of project cost to enhance viability on a case to case basis.

· 100 per cent tax exemption for five years and 30 per cent relief for next five years, which may be availed of in 20 years.

· Concession period allowed up to 30 years.

Railways

Traversing the length and breadth of the country, the Indian Railways, one of the largest developed networks in the world, with a total network of about 64,000 kilometre (km) spreading across 7,000 stations, with more than 18,000 trains operating every day, is one of the most cost efficient and well-connected modes of transport and hence enjoy preference over other modes of public transport. Over 22 million passengers travel by trains on a daily basis in India. The Railways transport around 2.5 million tonnes (MT) of freight via trains on a daily basis. The Indian Railways is a major catalyst to infuse socio-economic growth in the Indian economy.

The Railways have generated Rs. 210279.600 Millions (US$ 3.80 billion) of revenue earnings from commodity-wise freight traffic during April-June 2012, registering an increase of 27.38 per cent. Railways carried 244.81 MT of commodity-wise freight traffic during April-June 2012, registering an increase of 4.77 per cent. The cumulative foreign direct investment (FDI) inflow into the railways related components sector stood at US$ 246.30 million from April 2000 to April 2012, according to statistics released by the Department of Industrial Policy and Promotion (DIPP).

Industry Initiatives

· Coal India Ltd plans to invest Rs. 75000.000 Millions (US$ 1.35 billion) to develop railway tracks and related infrastructure to evacuate coal from Chhattisgarh, Jharkhand and Odisha. These tracks would help the company to acquire around 100 MT of additional coal from each of the States.

· The Ludhiana Metro project worth Rs.103000.000 Millions (US$ 1.86 billion), which will be completed in five years, was approved by Mr. Parkash Singh Badal, Chief Minister, Punjab, on July 17, 2012.

Aviation/Airports

The aviation sector is one of the major economic drivers for prosperity, development and employment in a country. The rapidly expanding aviation sector handles about 2.5 billion passengers across the world in a year; moves 45 million tones (MT) of cargo through 920 airlines, using 4,200 airports and deploys 27,000 aircraft. Today, 87 foreign airlines fly to and from India and five Indian carriers fly to and fro from 40 countries.

Currently ninth, India is expected to be amongst the top five nations in the world in the next 10 years in the aviation sector. The sector with a growth of 18 per cent in domestic market is expected to generate approximately 2.6 million jobs in the next one decade.

The passenger traffic has grown at the rate of 17 -18 per cent in the last few years. According to an assessment of the overall outlook of the sector, the fleet of the commercial airlines is expected to touch approximately 1,000 aircraft in 2020.

Power

In terms of power generation, India is the sixth largest in the entire world. Over the past 30 years the demand for power in India has enhanced at 3.6 per cent per annum on the back of economic growth of India. However, there is still a long gap in the Demand and Supply of electricity in India. According to the experts, the total demand for electricity will be above 950,000 MW by 2030. To fulfill the gap, the Indian power sector, will add nearly 45,000 megawatt (MW) to its total installed capacity by 2013-14, to the existing production

India continued its ascent as a top destination for private clean energy investment. "Clean energy investment, excluding research and development, has grown by 600 per cent since 2004, with a goal to have 20 gigawatt (GW) of solar power installed by 2020, helped drive the seven-fold jump in solar energy investments to US$ 4.2 billion. India now has 22.4 GW of installed clean energy generating capacity.

India's first Solar Power Park with generation capacity of 500 MW in Charanka village, in Patan district, Gujarat. Fifth unit of the Mundra power plant was synchronised, taking its total generating capacity to 4,620 MW, making it the world's largest single location coal-fired plant in the private sector and the fifth largest globally.

A study is pegging Indian potential for wind energy at 3,000 GW. It claims that the potential for wind energy utilization with the prevalent technologies is far in excess of earlier estimates by Center for Wind Energy Technology (CWET). The Centre estimated Indian wind energy potential at 49,000 MW and increased to 100 GW subsequently.

The foreign direct investment (FDI) received in the power sector during April 2000 to February 2012 stood at US$ 7,262.01million, according to statistics released by the Department of Industrial Policy and Promotion (DIPP).

URBAN INFRASTRUCTURE

Urban infrastructure mainly covers areas of Water, transport, housing, electricity, health and sanitation and education. Most of the commercial activity other than agriculture and village merchandise takes place in urban areas. Therefore, to a large extent, urban India is the engine of productivity and growth in the country. The five fold explosive growth in Urban India has resulted in serious infrastructure constraints. Today, India's urban population is second largest in the world after China and is expected to be 600 million by 2031, more than double of 2001. Already the number of metropolitan cities has increased from 35 in 2001 to 50 in 2011 and is expected to increase further to 87 by 2031. The expanding size of Indian cities will happen in many cases through a process of peripheral expansion of urban infrastructure, with smaller municipalities and large villages surrounding the core city becoming part of the large metropolitan area.

The Central Public Health Engineering and Environmental Organisation (CPHEEO) has estimated the requirement of funds for 100 percent coverage of the urban population under safe water supply and sanitation services by the year 2021 at Rs.1729050.000 Millions. Estimates by Rail India Technical and Economic Services (RITES) indicate that the amount required for urban transport infrastructure investment in cities with population 100,000 or more during the next 20 years would be of the order of Rs.2070000.000 Millions.

Infrastructure to meet these requirements calls for huge investments apart from the budgetary allocation of Central, State and Local Governments. It would induce the private sector to participate in urban development programmes.

CHALLENGES AND OUTLOOK

The key to global competitiveness of the Indian economy lies in building world class infrastructure and service delivery at competitive rates. The realization of investment targets for infrastructure during the Eleventh Plan gives hope that the financing of an even more ambitious Twelfth Plan target may be possible. Private-sector participation in financing of infrastructure has also generated optimism that public funding need not necessarily be the exclusive route for infrastructure investment. A conducive environment for private sector participation with a transparent and credible regulatory mechanism, therefore, could reduce the pressure on public-sector funding. Sectoral analysis of private-sector participation in infrastructure during the Eleventh Plan also indicates that sectors such as railways, water supply and sanitation, ports, and power distribution have not generated the desired enthusiasm and attracted the desired level of private investment. It is, therefore, imperative to identify hurdles and weaknesses in regulatory, financing, and incentive structure (both taxation and debt) and project implementation-related issues that may be inhibiting private investment into these sectors.

There is a limited scope for large increase in domestic savings rate. There is also a mismatch between the long term fund requirements of the infrastructure sector and the bulk of savings and their intermediation with a shorter maturity span. As a result, there is a need for introducing more innovative schemes to attract large-scale investment into infrastructure. In view of the massive requirement of funds, all efforts need to be made to attract big ticket long-term investors such as strategic investors, private equity funds, pension funds, and sovereign funds. Strengthening domestic financial institutions and development of a long-term bonds market may be critical. Government has already enhanced the limit for foreign institutional investors (FIIs) to invest in corporate bonds issued by companies in the infrastructure sector, notified guidelines for infrastructure debt funds, and allowed tax benefits for investment in long-term infrastructure bonds. Besides financing, the infrastructure sector has also suffered due to a time lag in physical capacity creation and time overruns. These not only delay availability, but through cost overruns raise pricing and affordability issues. Infrastructure costs, as these are often non-tradeables may also affect the competitiveness of economy in long run. A harmonised list of main sectors and sub-sectors of infrastructure approved by government to serve as a guide for all agencies responsible for supporting infrastructure is a welcome move.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
(a) In respect of claims against the company not acknowledged as debts*
- Sales Tax And Entry Tax Matters	50.056	9.510
Royalty Matters	20.582	31.471
- Service Tax Matters	332.044	389.147
- Custom Duty Matters	42.599	22.104
- Labour Welfare Cess	8.561	8.561
- Other Legal Cases	64.932	53.714
Total	518.774	514.507
* Appropriate representations have been filed in respect of these matters with the authorities concerned
(b) Towards Banks
- Corporate guarantees given in favour of banks for loans taken by Subsidiary/ associate companies	9447.100	9627.100
- In respect of Guarantees, Letters of Credit and others (net of margin)	7303.036	4136.655
(c) In respect of uncalled capital of Subsidiary Company	19.800	0.000

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE 2012.

Rs. In Millions

	Particulars	Quarter Ended (Unaudited)
		30.06.2012
1	Net Sales/Income From Operations	10371.355
2	Total Expenditure
	A) Direct Expenses	7939.481
	B) Employees Cost	370.786
	C) Depreciation	258.164
	D) Other Expenditure	83.822
	Total	8652.253
3	Profit from Operations before Other Income, Interest (1 -2)	1719.102
4	Other Income	104.210
5	Profit before Interest & Tax (3+4)	1823.312
6	Financial Expenses	1198.544
7	Profit after Interest before tax (5-6)	624.768
8	Tax Expenses	198.275
9	Net Profit from Ordinary Activities after tax (7-8)	426.493
10	Extraordinary Item (Net)	220.147
11	Net Profit After Extraordinary Item (9-10)	206.346
12	Paid Up Equity Share Capital (Face value of Rs. 21- Each)	363.655
13	Reserves Excluding Revaluation Reserves
11	Earning Per Share (Not Annualised) (Rs.)
	a) Before Extraordinary Items
	Basic	2 35
	Diluted	2.35
	b) After Extraordinary items
	Basic	1.13
	Diluted	1.13
A.	PARTICULARS OF SHARE HOLDING
1	Aggregate of Public Shareholding
	- No. of Equity Shares of Rs.2/- Each	72756806
	- Percentage of Shareholding	40.01%
2	Aggregate of Promoters and Promoter Group Shareholding
a)	Pledged/Encumbered
	- No of Equity Shares of Rs.2/- Each	85830350
	- % of Shares the total Shareholding of promoter/ promoter group	7869%
	- % of Shareholding on total share capital of the company	47.20%
b)	Non -encumbered
	- No. of Equity Shares of Rs.2/- Each	23240484
	- % of Shareholding of promoter and promoter group	21.31%
	-% of Shareholding on total share capital of the company	12.78%
B.	INVESTORS COMPLAINT
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Rem arming unsolved at the end of the quarter	Nil

UNAUDITED SEGMENT-WISE RESULTS FOR THE QUARTER 30TH JUNE, 2012

Rs. In Millions

	Particulars		Quarter Ended (Unaudited)
			30.06.2012
1	Segment Revenue
	- Contracts	8222.147
	-Energy	21.019
	- Equipment Hiring	595.783
	- Ready Mix Concrete	4.732
	- Trading & Others	1830.727
	Gross Sales	10674.408
	Less : Inter Segment	303.052
	Net Sales	10371.355
2	Segment Results Profit Before Tax and Interest
	- Contracts	1282.917
	- Energy	8.651
	- Equipment Hiring	352.703
	- Ready Mix Concrete	(0.331)
	- Trading	28.010
	Total	1671.950
	Less: i) Interest	1142.411
	ii) Other Un-allocable Expenditure net off	-
	iii) Un-allocable income	(95.229)
	Profit Before Tax	624.768
3	Capital Employed
	- Contracts	39240.546
	- Energy	362.633
	- Equipment Hiring	10619.811
	- Ready Mix Concrete	78.719
	- Others	7399.661
	Total	57701.369

Notes:

1. The above unaudited results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 14th August, 2012. The Statutory Auditors have carried out Limited Review of the financial results for the Quarter ended 30th June, 2012

2. (a) The segment reporting is in accordance with the Accounting Standard 17.

(b) The Primary Business segments of the company mainly comprise of Contracts, Energy, Equipment Hihng, Ready Mix Concrete and Trading.

3. Extraordinary items represents loss towards currency difference arise on ECBs and Others.

4. As per clause 41 of the listing agreement with the Stock Exchange. The company has opted to publish standalone financial results.

5. The figures for the previous period have been regrouped/rearranged wherever necessary to make them comparable

FIXED ASSETS:

• Land
• Leasehold Land
• Factory Building
• Plant and Machinery
• Tractor / Trucks
• Furniture and Fixtures
• Computer
• Office Equipments
• Electrical Installations
• Vehicles
• Data Processing Machine
• Wing Turbine Generator

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.54.63
UK Pound	1	Rs.88.40
Euro	1	Rs.71.86

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		53

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.