MIRA INFORM REPORT

Report Date :

30.01.2012

IDENTIFICATION DETAILS

Name :	THE ANUP ENGINEERING LIMITED
Registered Office :	Behind 66 KV Elec. Sub Station, Odhov Road, Ahmedabad – 382415, Gujarat,
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.11.1962
Com. Reg. No.:	04- 001170
Capital Investment / Paid-up Capital :	Rs.34.000 Millions
CIN No.: [Company Identification No.]	L99999GJ1962PLC001170
TAN No.: [Tax Deduction & Collection Account No.]	AHMA00478C
PAN No.: [Permanent Account No.]	AAACT5733A
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Fabricated Process Equipment and Components
No. of Employees :	1700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1310000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the profitability of the company. However, 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.

INFORMATION PARTED BY

Name :	Mr. J.C Daghi
Designation :	Accounts Executive
Contact No.:	91-79-22870622
Date :	28.01.2012

LOCATIONS

Registered Office :	Behind 66 KV Elec. Sub Station, Odhov Road, Ahmedabad – 382415, Gujarat, India
Tel. No.:	91-79-22870622/ 22872823
Fax No.:	91-79-22870642
E-Mail :	anup@anupengg.com
Website :	http://www.anupengg.com
Area :	5000 Sq. mtr
Location :	Leased
Factory :	P B No. 1158, Ahmedabad – 380002, Gujarat, India

DIRECTORS

As on 15.07.2011

Name :

Mr. Samveg Arvind Lalbhai

Designation :

Chairman

Address :

'Shalimar', Shahibaug, Ahmedabad – 380 004, Gujarat, India

Date of Birth/Age :

04.06.1961

Date of Appointment :

30.09.1995

DIN No.:

00009278

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L45208GJ1983PLC006056	GUJARAT TOOLROOM LIMITED	Director	11-09-91	11-09-91	30-01-08	Active	NO
2	U15400GJ1994PTC023449	SAUMYA FARMS AND ORGANIC PRODUCTS PRIVATE LIMITED	Director	28-10-94	28-10-94	-	Active	NO
3	U01119GJ1994PTC023450	SNEH FARMS PRIVATE LIMITED	Director	28-10-94	28-10-94	-	Active	NO
4	U15174GJ1995PTC025178	ARVIND FARMS PRIVATE LIMITED	Director	24-03-95	24-03-95	-	Active	NO
5	L99999GJ1962PLC001170	THE ANUP ENGINEERING LIMITED	Director	30-09-95	30-09-95	-	Active	NO
6	L17110GJ1986PLC008886	ARVIND PRODUCTS LIMITED	Director	16-01-99	16-01-99	-	Active	NO
7	L99999GJ1975PLC002859	ATUL LIMITED	Managing director	21-01-00	21-01-00	-	Active	NO
8	L51909WB1983PLC036542	BENGAL TEA AND FABRICS LTD	Director	06-05-04	06-05-04	-	Active	NO
9	U93000GJ2009NPL056335	NATIONAL DESIGN BUSINESS INCUBATOR	Director	15-04-09	15-04-09	-	Active	NO

Name :

Mr. Arun Pratapsingh Sheth

Designation :

Director

Address :

11, Amrakadam, Near Super Society, Satellite Road, Inside Ramdev Tekra, Ahmedabad, Gujarat, India

Date of Birth/Age :

11.02.1925

Date of Appointment :

14.11.1962

DIN No.:

00096740

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231GJ1955PTC000582	ALCHEMIE PRIVATE LIMITED	Director	20-08-55	20-08-55	-	Active	NO
2	L99999GJ1962PLC001170	THE ANUP ENGINEERING LIMITED	Director	14-11-62	14-11-62	-	Active	NO
3	L14100GJ1979PLC003439	AMOL DICALITE LIMITED	Director	02-07-79	02-07-79	-	Active	NO
4	U51101GJ1980PTC004086	A P SETH INVESTMENTS PRIVATE LIMITED	Director	20-12-80	20-12-80	-	Active	NO
5	U51900GJ1982PTC005180	D B SHETH INVESTMENTS PRIVATE LIMITED	Director	30-04-82	30-04-82	-	Active	NO
6	U51900GJ1982PTC005181	B P SHETH INVESTMENT PRIVATE LIMITED	Director	30-04-82	30-04-82	-	Active	NO
7	U65910GJ1993PLC019710	ROBIN FINANCE AND INVESTMENTS LIMITED	Director	26-03-07	26-03-07	20-09-08	Active	NO

Name :

Mr. Pankaj Sudhakar Sheth

Designation :

Director

Address :

278, Manekbag Soc. Near Manekbag Hall Ambawadi, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

25.11.1941

Date of Appointment :

26.06.1984

DIN No.:

00181029

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L99999GJ1962PLC001170	THE ANUP ENGINEERING LIMITED	Director	26-06-84	26-06-84	-	Active	NO
2	U65910GJ1961PTC001086	ASHISH PRODUCTS PRIVATE LIMITED	Director	29-12-84	29-12-84	-	Active	NO
3	U24299GJ1985PTC007586	RIGAT CHEMICALS PRIVATE LIMITED	Director	30-11-98	30-11-98	-	Strike off	NO

Name :

Mr. Shreyas Chinubhai Sheth

Designation :

Director

Address :

4, Ruchir – II, Bunglow, Opposite Nehru Foundation, Judges Bunglow Road, Vestrapur, Ahmedabad – 380054, Gujarat, India

Date of Birth/Age :

16.06.1957

Date of Appointment :

28.03.1987

DIN No.:

00009350

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25209GJ1980PTC003728	ANJNA PLASTIC PRIVATE LIMITED	Director	15-04-80	15-04-80	-	Active	NO
2	U65910GJ1981PTC004528	ALOHA INVESTMENTS PRIVATE LIMITED	Director	04-08-81	04-08-81	-	Active	NO
3	U65910GJ1981PTC004527	ARBOR INVESTMENTS PRIVATE LIMITED	Director	04-08-81	04-08-81	-	Active	NO
4	U65910GJ1981PTC004530	ACRON INVESTMENTS PRIVATE LIMITED	Director	04-08-81	04-08-81	-	Active	NO
5	U65910GJ1981PTC004529	AVDHI INVESTMENTS PRIVATE LIMITED	Director	04-08-81	04-08-81	-	Active	NO
6	U65910GJ1982PTC005323	APRIR INVESTMENTS PRIVATE LIMITED	Director	13-07-82	13-07-82	-	Active	NO
7	U65910GJ1982PTC005345	AKIN INVESTMENTS PRIVATE LIMITED	Director	17-07-82	17-07-82	-	Active	NO
8	U65910GJ1982PTC005339	ADIOS INVESTMENTS PVT LTD	Director	30-07-82	30-07-82	-	Active	NO
9	U65910GJ1982PTC005335	ASTER INVESTMENTS PRIVATE LIMITED	Director	30-07-82	30-07-82	-	Active	NO
10	U24231GJ1955PTC000582	ALCHEMIE PRIVATE LIMITED	Director	09-10-82	09-10-82	-	Active	NO
11	L99999GJ1962PLC001170	THE ANUP ENGINEERING LIMITED	Director	28-03-87	28-03-87	-	Active	NO
12	U25202GJ1990PLC014594	AMOL PACKIN LIMITED	Director	06-11-90	06-11-90	-	Strike off	NO
13	L14100GJ1979PLC003439	AMOL DICALITE LIMITED	Managing director	01-07-11	01-07-96	-	Active	NO
14	U65910GJ1981PLC004408	ASMAN INVESTMENTS LIMITED	Director	27-03-03	27-03-03	07-10-08	Active	NO
15	U51909MH2001PTC130282	DIVA EXPORTS PRIVATE LIMITED	Director	05-08-03	05-08-03	-	Active	NO
16	L17110GJ1986PLC008886	ARVIND PRODUCTS LIMITED	Director	27-04-04	27-04-04	-	Active	NO
17	L51505HP1993PLC031724	LS INDUSTRIES LIMITED	Director	23-01-07	23-01-07	07-05-09	Active	NO
18	U65910GJ1993PLC020228	EDELWEISS FINANCIAL ADVISORS LIMITED	Director	29-09-09	28-08-07	15-02-11	Active	NO
19	U66990GJ1995PLC025267	EDELWEISS COMTRADE LIMITED	Director	01-01-08	01-01-08	15-12-10	Active	NO
20	U67120GJ1994PLC022633	EDELWEISS STOCK BROKING LIMITED	Director	29-09-08	21-01-08	29-12-10	Active	NO
21	U24220GJ2010PTC061519	PERLCON PREMIX PRIVATE LIMITED	Director	11-07-10	11-07-10	-	Active	NO

Name :

Mr. Chandrakant T. Parikh

Designation :

Director

Address :

Vrundavan Behind Civil Hospital, Shahibaug, Ahmedabad – 380 004, Gujarat, India

Date of Birth/Age :

16.08.1927

Date of Appointment :

28.03.1987

DIN No.:

00730461

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L99999GJ1962PLC001170	THE ANUP ENGINEERING LIMITED	Director	28-03-87	28-03-87	-	Active	NO
2	U51909GJ1990PTC013306	GRADIENT MARKETING PRIVATE LIMITED	Director	29-01-90	29-01-90	-	Strike off	NO

KEY EXECUTIVES

Name :	Mr. J.C Daghi
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
Promoter Holding
Promoters	308822	90.83
Non Promoters Holding
Mutual Funds and Administrator of the Specified Undertaking of Unit Trust of India	--	--
Banks, Financial Institution, Insurance Companies etc.	13848	4.07
Foreign Institutional Investors (FIIS)	--	--
Others
Private Corporate Bodies	5381	1.58
NRIs / OCBs	--	--
State Government	--	--
Indian Public	11949	3.52
Total	340000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 15.07.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.12
Public Finance Companies	2.75
Nationalized or Other Banks	1.33
Bodies corporate	90.23
Directors or relatives of Directors	1.77
Other top fifty shareholders	2.10
Others	1.70
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fabricated Process Equipment and Components

Products :

Product Description	Item Code No.
Pressure Vessels, Reactors	841989.01
Centrifuges	842119.02/ 842119.07
Chlorine Containers	731100.09

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Chemical and Pharmaceutical machinery	MT	1900	1900	5263
Industrial centrifuges	Nos	100	100	14
** Diary Machinery and equipments	Rs. Lacs	125	--	--
Expansion joints and bellows	MT	130	130	--
** Soda ash plant equipments and components	Rs. Lacs	100	--	--
Textile machinery (including accessories)	Nos	25	--	--

GENERAL INFORMATION

Customers :

Consultants

· Engineers India Limited

· UHDE India Limited

· Jacob HandG Limited

· Kvaerner Powergas India Limited

· Toyo Engineering Limited

· Linde - West Germany

End Clients

Pharma Industries:

· Ranbaxy Laboratories Limited

· DSM Anti-Infectives India Limited

· Max GB

· Aventis Crop science

· Hochest Pharmaceuticals Limited

· Lupin Laboratories Limited

Petrochemicals and Refineries:

· Indian Oil Corporation Limited - Panipat/Haldia/Gauhati/Vadodara

· Kochi Refineries

· Hindustan Petroleum Corporation Limited - Vaizag

· Bharat Petroleum Corporation Limited Mahul, Mumbai

· Reliance Petrochemicals Industries - Hazira

· Narmada Chematur Petrochemicals - Bharuch

· Indian Petrochemicals Corporation Limited Baroda/ Nagothane

Gas

· Gas Authority of India Limited

· Oil and Natural Gas Corporation Limited

· Reliance Industries

· Oil India Limited

Fertilizers:

· Gujarat State Fertilizer Company Limited

· Gujarat Narmada Valley Fertilizer Company Limited

· Rashtriya Chemicals and Fertilizers Limited

· Indian Farmers Fertilizer Co. Op. Limited

Chemicals Dyes and Intermediates:

· Atul Limited. - Valsad

· National Organic Chemicals Limited. - Mumbai

· Herdilia Chemicals Limited. - Mumbai

· Shriram Vinyl and Chemicals Limited. - Kota, Bharuch

Pulp and Paper:

· J.K. Industries Limited - raigadh and Kota

· Hindustan Paper Corporation Limited Naongaon - Meghalaya

Power Plants:

· Nuclear Power Corporation Limited - Tarapur, Hyderabad, Kota, Chennai

· ALSTOM

· National Thermal Power Corporation Limited

Others:

· Bharat Heavy Electricals Limited - Bhopal, Hyderabad, Trichi, Hardwar

· Andhra Sugars Limited - Tanaku, A.P.

· HEG Limited - Bhopal

· I S R O

· D R D C

No. of Employees :

1700 (Approximately)

Bankers :

• Bank of Baroda, CFS Branch, First/ Second Floor, BOB Towers, Opposite NCC Ground, Law Garden, Ellisbridge, Ahmedabad – 380009, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From a Bank, secured by equitable mortgage/hypothecation of entire fixed assets of Company comprising of Land, Buildings, Machinery and other miscellaneous assets, except vehicle purchased under hypothecation arrangement, present and future, and hypothecation of Inventories and book debts, etc. both present and future.
Term Loan	72.433	120.005
Cash Credit	193.132	184.457
From a Bank against Hypothecation of Cars	2.199	1.963
Total	267.764	306.425
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Companies	8.503	8.503
Total	8.503	8.503

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants,
Address :	49-55, Apollo Street, Fort, Mumbai – 400 001, Maharashtra, India
PAN.:	AAAFD6520G
Holding Company :	Arvind Limited
Fellow Subsidiaries :	Arvind Investment Limited Arvind Accel Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital:

No. of Shares	Type	Value	Amount
500000	Equity shares	Rs. 100/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital:

Capital:

No. of Shares	Type	Value	Amount
340000	Equity shares	Rs. 100/- each	Rs.34.000 millions

Note:

Out of the above shares,

1. 2,00,000 Equity Shares (Previous Year 2,00,000 Shares) of Rs.100/- each have been issued to Arvind Limited on conversion of part of loan, in terms of Board of Industries and Financial Reconstruction Order Dated.8th December, 2005 approving the Rehabilitation Scheme.

2. 3, 00,000 Equity Shares (Previous Year 3, 00,000 Shares) of Rs.100/- each are held by the Holding Company.

3. 5,000 Equity Shares (Previous Year 5,000 Shares) of Rs.100/- each allotted to Shareholders of Hind Laboratories Private Ltd. as fully paid without payment being received in cash, in terms of amalgamation scheme sanctioned by Gujarat High Court, as per order dated 20/07/1964

4. 2,500 Equity Shares (Previous Year 2,500 Shares) of Rs.100/- each allotted to Machinefabriek Reineveld N.V., as fully paid without payment being received in cash pursuant to collaboration agreement for Technical Know-how

5. 9,992 Equity Shares (Previous Year 9,992 Shares) are issued as fully paid Bonus Shares by way of Capitalization of Reserve

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		34.000	34.000	34.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		293.550	279.398	177.961
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		327.550	313.398	211.961
LOAN FUNDS
1] Secured Loans		267.764	306.425	243.378
2] Unsecured Loans		8.503	8.503	46.065
TOTAL BORROWING		276.267	314.928	289.443
DEFERRED TAX LIABILITIES		27.476	17.000	9.822
TOTAL		631.293	645.326	511.226
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		253.206	192.240	145.073
Capital work-in-progress		0.000	52.357	0.926
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	296.205	287.990	259.998
	Sundry Debtors	308.526	244.565	281.273
	Cash & Bank Balances	16.668	13.695	11.513
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.729	26.828	15.600
Total Current Assets		642.128	573.078	568.384
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	202.217	101.307	103.004
	Other Current Liabilities	57.872	55.568	98.523
	Provisions	3.952	15.474	1.630
Total Current Liabilities		264.041	172.349	203.157
Net Current Assets		378.087	400.729	365.227
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		631.293	645.326	511.226

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	877.810	907.446	786.382
		Other Income	3.815	2.940	4.010
		TOTAL (A)	881.625	910.386	790.392
Less	EXPENSES
		Raw Material Consumed	596.161	473.499	488.243
		Manufacturing Expenses	142.184	133.588	122.681
		Employees Cost	58.829	45.099	33.731
		Other Expenditure	37.500	38.387	38.160
		Increase/(Decrease) in Finished Goods	(37.549)	9.551	(50.710)
		TOTAL (B)	797.125	700.124	632.105
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		84.500	210.262	158.287
Less	FINANCIAL EXPENSES (D)		37.138	35.857	25.242
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.362	174.405	133.045
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.783	12.550	7.268
	PROFIT BEFORE TAX (E-F) (G)		28.579	161.855	125.777
Less	TAX (H)		10.476	56.440	43.527
	PROFIT AFTER TAX (G-H) (I)		18.103	105.415	82.250
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		275.795	177.758	95.508
Less	APPROPRIATIONS
		Transfer to General Reserve	3.400	3.400	--
		Proposed Dividend	3.400	3.400	--
		Corporate Dividend Tax on above	0.578	0.578	--
	BALANCE CARRIED TO THE B/S		286.546	275.795	177.758
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14.746	5.199	9.455
	TOTAL EARNINGS		14.746	5.199	9.455
	IMPORTS
		Raw Materials	40.522	5.561	43.653
		Capital Goods	1.521	--	17.536
		Stores and Spares	0.160	0.931	0.000
	TOTAL IMPORTS		42.203	6.492	61.189
	Earnings Per Share (Rs.)		53.25	310.04	241.91

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.05	11.52	10.41
Net Profit Margin (PBT/Sales)	(%)	3.26	17.84	15.99
Return on Total Assets (PBT/Total Assets}	(%)	3.19	21.15	17.63
Return on Investment (ROI) (PBT/Networth)		0.09	0.52	0.59
Debt Equity Ratio (Total Liability/Networth)		1.65	1.55	2.32
Current Ratio (Current Asset/Current Liability)		2.43	3.33	2.80

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Due to Micro, Small and Medium Enterprises	--	--	--
Others:
For Goods:	134.792	60.774	69.591
For Expenses	29.381	24.793	23.024
Others	38.044	15.740	10.389
Total	202.217	101.307	103.004

Check list by Info Agents	Available in Reports ( Yes/No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitutions of the Firm	Yes
Premises Details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	--
No. of Employees	Yes
Name of person contacted	Yes
Designation of contact person	Yes
Turnover of Firm fort last three years	No
Profitability for last three years	--
Reasons For Variation<>20%	--
Estimation for coming financial year	No
Capital in Business	Yes
Details of Sister Concern	Yes
Major Suppliers	No
Major Customers	Yes
Payment Terms	Yes
Export / Import Details (if Applicable)	No
Market Information	--
Litigations that the firm / Promoter involved in	--
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	--
Buyer visit details	--
Financial, if provided	No
Incorporation details, if applicable	--
Last Account filed at ROC	--
Major shareholder , if available	--

OPERATIONS

During the year The Company could achieve turnover of Rs.881.700 Millions as against Rs.910.400 Millions during the year 2009-10.The Turnover for the year was slightly lower than the previous year but Profit for the year substantially reduced to Rs.18.200 Millions from Rs.107.000 Millions during the previous year. Profit before interest, depreciation and tax also shown decline from Rs.196.100 Millions to Rs.76.400 Millions

PROSPECTS

After an unprecedented slow down world over, the economic recovery started but the pace of recovery was slow and major economies were still not out of danger. Fortunately, India could withstand the Crisis in a much better way than the rest of the World and could come out of this turmoil much faster. As the world was facing slow down major players of the industry in which The Company operates started operations in domestic markets in a very big way to fill the gap of export shortfall. This, coupled with sudden spurt in Raw Material prices, unprecedented level of inflation, rising interest and manpower cost has seriously impacted operating margins of the Company. In view of this The Company is cautious about the performance of the company during the current year also. Order book position with the company is though reasonable is not at the level at which it was prevailing in earlier two to three years. The Directors are striving hard to come out of this difficult time.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

The sales of the Company has shown small decline from Rs. 9104 Millions to Rs. 8817 Millions. Profit before Taxation shown substantial reduction from Rs.161.900 Millions, during the previous year to Rs.28.600 Millions during the year and Profit net of Tax also shown decline from Rs.1054 Millions, during the previous year to Rs.18.100 Millions during the year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is in heavy fabrication industry and is one of the leading players since last 40 plus years. The company is one of the very few companies in the country, which has integrated fabrication facilities under one roof. The Company caters to, Refinery, Power Industry, Process Manufacturing, Chemical and Petro Chemical, Pharma etc. industries of the Country. Range of products includes process equipments, pressure vessels, heat exchangers, columns, centrifuges, chlorine tuners and vessels, expansion bellows etc.

OUTLOOK

Though Company is having reasonable orders on hand but compared to earlier years the position of orders on hand is little lower. Hence the future working of the company will largely depend on the improvement in the Capital Expenditure Program of Large Industrial Houses and continued expansion of Public Sector Undertakings which are major customers of the company. Even during the current year the company may feel pressure on the operating margins.

CONTINGENT LIABILITIES

	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Claims against the Company not acknowledged as Debts	0.526	0.526
Excise matter under appeal	0.000	0.170
Estimated amount of Contracts remaining to be executed on Capital account and not provided for	0.000	0.548

FIXED ASSETS

• Land , Leasehold
• Land, Freehold
• Buildings
• Machinery
• Electric Installations
• Tube Well
• Furniture
• Dead Stock
• Drawings
• Vehicles
• Computer software

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.49.65
UK Pound	1	Rs.77.80
Euro	1	Rs.65.05

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	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.