MIRA INFORM REPORT

Report Date :

10.10.2012

IDENTIFICATION DETAILS

Name :	ANJANI PORTLAND CEMENT LIMITED
Formerly Known As :	SHEZ CEMENTS LIMITED
Registered Office :	Sitha Nilayam, 153, Dwarakapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.12.1983
Com. Reg. No.:	01-004323
Capital Investment / Paid-up Capital :	Rs.183.896 Millions
CIN No.: [Company Identification No.]	L26942AP1983PLC004323
TAN No.: [Tax Deduction & Collection Account No.]	HYDA01742G
PAN No.: [Permanent Account No.]	AACCA8115F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Cement
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 3100000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. In the current year company has performed well. Financial company appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealing 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	BBB- (Long Term Facility)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation, it carry moderate credit risk.
Date	14.07.2012

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 :	Sitha Nilayam, 153 Dwarakapuri Colony, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-23351696/97
Fax No.:	Not Available
E-Mail :	avrao_anjanicement@yahoo.com
Website :	www.anjanicement.com
Corporate Office :	Anjani Cement Centre, Plot No.7 and 8, D. No. 8-2-248/1/7, Nagarjuna Hilla Main Road, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India
Tel No.:	91-40-23353038/ 23353096/ 3106
Fax No.:	91-40-23353093
Email:	info@anjanicement.com
Factory :	Chintalapalem (Village), Mellacheruvu (Mandalam), Nalgonda (District) – 508246, Andhra Pradesh, India
Tel No.:	91-8683-230160/ 230158/ 230168/ 217560/ 217230
Fax No.:	91-8683-230024
Email:	works@anjanicement.com
Branches :	Located at: o Visakhapatnam o Kakinada o Vijayawada o Chennai o Bhimavaram o Bangalore

DIRECTORS

(AS ON 31.03.2012)

Name :	Mr. K. V. Vishnu Raju
Designation :	Chairman and Managing Director
Date of Birth/ Age :	48 years
Qualification :	B. Tech, M.S (Chemical)
Experience :	23 years
Name :	Mr. P.V.R.L. Narasimha Raju
Designation :	Executive Director
Name :	Mr. R.A. Rama Raju
Designation :	Director
Name :	Mr. P.S. Ranganath
Designation :	Director
Name :	Mr. P.V. Subba Rao
Designation :	Director
Name :	Mr. P. R. Raju
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S.V.S. Shetty
Designation :	Chief Executive Officer
Name :	Mr. R.V.A. Narasimha Rao
Designation :	Chief Financial Officer
Name :	Mr. S.N. Raju
Designation :	Sr. Vice President (Operations)
Name :	Mr. N. Venkata Raju
Designation :	Assistant Vice President (Works)
Name :	Mr. Ch. Gandhi Raju
Designation :	Vice President (Marketing)
Name :	Mr. P. Sitharama Raju
Designation :	Senior General Manager (Works)
Name :	Mr. P. Satyanarayana Raju
Designation :	Group General Manager (HR and MS)
Name :	Mr. P. Ganapathi Raju
Designation :	Senior General Manager (Quality Control)
Name :	Mr. M. Nagabhushana Rao
Designation :	Senior General Manager (Mechanical)
Name :	Mr. K. V. Gopala Raju
Designation :	General Manager (Purchase)
Name :	Mr. D. V. Subba Raju
Designation :	General Manager (E and I)
Name :	Mr. Ch. S. S. Varma
Designation :	General Manager (P and C)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2012)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	10989130	59.76
Bodies Corporate	365000	1.98
Sub Total	11354130	61.74
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11354130	61.74
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	34400	0.19
Financial Institutions / Banks	7800	0.04
Sub Total	42200	0.23
(2) Non-Institutions
Bodies Corporate	1374251	7.47
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2974358	16.17
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2607760	14.18
Any Others (Specify)	36898	0.20
NRIs/OCBs	35593	0.19
Clearing Members	1305	0.01
Sub Total	6993267	38.03
Total Public shareholding (B)	7035467	38.26
Total (A)+(B)	18389597	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	0.00
(2) Public	--	0.00
Sub Total	--	0.00
Total (A)+(B)+(C)	18389597	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cement

Products :

Products Description	Item Code No.
Ordinary Portland Cement	25231000
Clinker	25231000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

o State Bank of India

o Punjab National Bank

o Indian Overseas Bank

o State Bank of Hyderabad

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans from Banks	895.652	1062.252
Vehicles Loans	0.945	0.868
Working Capital Loans	367.849	364.448
Total	1264.446	1427.588
NOTE: Term loans are secured by a first/joint equitable mortgage by deposit of title deeds, with State Bank of India, leader of consortium bankers, of all the Company’s immovable properties, both present and future and hypothecation of all movable assets (other than book debts) ranking pari-passu with the charges created in favour of the Consortium Bankers, State Bank of India, Punjab National Bank, Indian Overseas Bank, and State Bank of Hyderabad. The term loans are further secured by the personal guarantee of Chairman and Managing Director and Executive Director. Cash Credit facility with consortium Banks is secured by hypothecation of stocks of raw materials, stock in progress, finished goods, spares and book debts and second charge on Fixed Assets and personal guarantee of Chairman and Managing Director and Executive Director.
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Public Deposits	30.843	25.051
From Other Parties	767.947	729.016
Total	798.790	754.067

Banking Relations :	--
Auditors :
Name :	M. Anandam and Company Chartered Accountants
Address :	7 ‘A’, Surya Towers, S.P. Road, Secunderabad – 500003, Andhra Pradesh, India
Cost Auditors :
Name :	Narasimha Murthy and Company Chartered Accountants
Address :	3-6-365,104 and 105, Pavani Estate, Himayatnagar, Hyderabad – 500029, Andhra Pradesh, India
Subsidiaries :	o Vennar Ceramics Limited o Hitech Print Systems Limited
Enterprises owned or significantly influenced by key management personnel :	o Sai Aditya Foods and Retail Private Limited o Anjani Projects and Constructions Limited o Sri Vishnu Educational Society o Anjani Cement (Karnataka) Limited o Raasi Enterprises Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	14% Cumulative Redeemable Preference Shares	Rs. 10/- each	Rs. 10.000 Millions
30,000,000	Equity Shares	Rs.10/- each	Rs.300.000 Millions
	Total		Rs.310.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
18,394,463	Equity Shares	Rs.10/- each	Rs.183.945 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18,389,597	Equity Shares	Rs.10/- each	Rs.183.896 Millions

NOTE:

The details of shareholders holding more than 5% shares in the company	31.03.2012
Share Capital	% of share holding	Number of Shares
K V Vishnu Raju	39.31	7228916
K Ramavathy	6.51	1196600

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		183.896	183.896	183.896
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		590.622	458.225	469.562
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		774.518	642.121	653.458
LOAN FUNDS
1] Secured Loans		1264.446	1427.588	1411.789
2] Unsecured Loans		798.790	754.067	577.366
TOTAL BORROWING		2063.236	2181.655	1989.155
DEFERRED TAX LIABILITIES		120.164	96.165	92.769
TOTAL		2957.918	2919.941	2735.382
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2288.742	2342.627	2176.218
Capital work-in-progress		92.324	4.083	2.456
INVESTMENT		164.695	164.695	164.695
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	295.638	337.821	123.354
	Sundry Debtors	209.497	148.748	111.628
	Cash & Bank Balances	36.029	22.749	25.985
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	609.119	434.793	312.046
Total Current Assets		1150.283	944.111	573.013
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	181.743	98.029	147.810
	Other Current Liabilities	502.866	415.921	40.853
	Provisions	53.517	21.625	(7.663)
Total Current Liabilities		738.126	535.575	181.000
Net Current Assets		412.157	408.536	392.013
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2957.918	2919.941	2735.382

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2960.924	1754.993	1226.283
		Other Income	71.102	43.342	34.316
		TOTAL (A)	3032.026	1798.335	1260.599
Less	EXPENSES
		Cost of Materials consumed	383.213	341.863
		Purchase of Traded Goods	1.041	0.000
		Changes in inventories of finished goods and work-in-progress	80.903	(166.737)	959.347
		Employee benefits expense	114.000	88.145
		Other Expenses	1758.296	1135.624
		TOTAL (B)	2337.453	1398.895	959.347
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		694.573	399.440	301.252
Less	FINANCIAL EXPENSES (D)		337.683	259.014	53.375
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		356.890	140.426	247.877
Less/ Add	DEPRECIATION/ AMORTISATION (F)		138.327	127.478	39.946
	PROFIT BEFORE TAX (E-F) (G)		218.563	12.948	207.931
Less	TAX (H)		60.518	7.188	91.038
	PROFIT AFTER TAX (G-H) (I)		158.045	5.761	116.893
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	441.562	349.113
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.000	3.000
		Dividend	NA	14.712	18.390
		Tax on Dividend	NA	2.386	3.054
	BALANCE CARRIED TO THE B/S		NA	430.225	441.562
	Earnings Per Share (Rs.)		8.59	0.31	6.35

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Net Sales	696.230
Total Expenditure	560.020
PBIDT (Excl OI)	136.210
Other Income	4.030
Operating Profit	140.240
Interest	84.440
Exceptional Items	0.000
PBDT	55.800
Depreciation	35.160
Profit Before Tax	20.630
Tax	7.400
Provisions and contingencies	0.000
Profit After Tax	13.230
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	13.230

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.21	0.32	9.27
Net Profit Margin (PBT/Sales)	(%)	7.38	0.74	16.96
Return on Total Assets (PBT/Total Assets}	(%)	11.36	0.34	7.56
Return on Investment (ROI) (PBT/Networth)		0.28	0.02	0.32
Debt Equity Ratio (Total Liability/Networth)		3.62	4.23	3.32
Current Ratio (Current Asset/Current Liability)		1.56	1.76	3.17

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	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

REVIEW OF OPERATIONS:

The company has produced a quantity of 7,89,174 MT. of cement during the current financial year compared to the previous year production of 6,51,278 MT. of cement registering an increase of 21%. The quantity sold during the year stands at 7,94,528 MT. compared to the quantity of 6,38,449 MT. during the previous financial year showing an increase of 24%.

The gross sales in terms of value during the year were at Rs.3764.547 Millions as against Rs.2237.987 Millions during the previous financial year translating into an increase of 68 %. Similarly the Profit Before Tax for the current financial year is Rs.218.542 Millions against Rs.12.949 Millions for the previous financial year. The profit after tax for the year stands at Rs.158.045 Millions compared to Rs.5.761 Millions during the previous financial year.

It can be observed that there is a significant improvement in the performance both in the physical terms and financial terms during the year under review compared to the previous year.

The higher production and sale as well as and the improved sale price have helped the company to post a better performance compared to the previous year. During the year 2011-12 there was an increase in the cost of electricity and coal, which are major components of cost for a cement industry. The average increase in unit charges of power stands at about 11% (current year average Rs.4.00 per unit and Rs.3.59 during the previous year) and the cost of coal per tone has gone up on an average by 28% (from average of Rs.3923.00 during 2010-11 to Rs.5049.00 during the year 2011-12). But for the increase in these costs, the company’s profitability would have been much better during the year 2011-12. Inspite of the increase in these fuel costs, the company could get a better financial results with the help of higher production and sale quantities and better realizations in sale price.

The cement industry, with its fluctuating fortunes, is known for abnormal variations in the prices owing to several reasons including the changes in demand for the product, supply side changes, increase in installed capacities, changes in the Government spending pattern, emphasis on infrastructure projects, political Situation etc. The year has seen a better price realization and it is hoped that the situation would continue.

The statistics available show that there is negative growth in AP for cement demand by about 2% during the year 2011-12 compared to the negative growth of 12 % in the year 2010-11 and positive growth of 3% during 2009-10. The company could overcome the impact of this negative growth by expanding its marketing network to neighboring states by increasing the quantum of sale in these states.

EXPANSION PROJECT

The company has embarked upon an expansion project, through its fully owned subsidiary Vennar Ceramics Limited to set up a 6500 Sq. metres per day of ceramic wall tiles project at its existing power plant site at Perikigudem. The estimated project cost for the same stands at Rs.550.000 Millions. As the company has started to scout for a strategic partner with experience in marketing of ceramic products particularly wall tiles, it has been identified that Kajaria Ceramics Limited is interested in taking up marketing arrangement as well as to invest in the company as strategic partner. In view of the fact that they have an established brand with all India presence and in order that synergies’ in operation and marketing can be achieved, it has been thought of that the company should go in to a strategic association with Kajaria Ceramics Limited. They have been invited to take up a stake of 51%. Accordingly the total project cost of 550.000 Millions is being financed both by Company and Kajaria Ceramics Limited with term loan assistance of Bank of Baroda. The tiles project is expected to become operational during the middle of June, 2012. The management is confident that with the assistance of Kajaria Ceramics Limited the ceramics wall tiles project would be an added advantage to the company.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

CEMENT INDUSTRY STRUCTURE AND DEVELOPMENT:

The installed capacity of cement in India stands at 318 million tonnes per annum out of which 65 million tonnes is accounted for in the state of Andhra Pradesh. The capacities which are being added in India in the next Financial Year stands at 30 million tones and in Andhra Pradesh, capacity addition expected in the next Financial year is 6 million tonnes. Cement Industry in India has seen a spurt in the total installed capacity whereas the effective demand for the product during the year has not kept pace with the increase in the production capacities. As the industry has become highly competitive, in view of the surplus situation particularly in the state of Andhra Pradesh, an effective cost management and better logistics arrangement will be key to achieve a sustainable growth in the longer periods to come.

Efforts are on to improve the cost control measures and to increase the reach of the product through optimal logistics arrangement so that the brand visibility will improve and the costs are optimized.

SEGMENT WISE PERFORMANCE:

The company’s main business activity is manufacturing of Cement which falls in a single segment.

OVERVIEW

The industry, in general, could not achieve its expected off take from its expanded capacities due to lack of Government spending on infrastructure caused by the global crises and unstable political situation. Similarly, private sector plans on construction field also lagged behind considerably due to the uncertain situation with overseas clients caught in the throes of the economic meltdown.

Presently, there are signs of positive return to the growth phase in most of the sectors and also in infrastructure development which will spur Government spending. These signs coupled with a revival in building activity in the realty sector should give a boost to demand and prices in the cement industry.

OUTLOOK

The industry is however highly positive on the long term outlook and is going in for creation of additional capacities, encashing on consolidation opportunities to synergize on operations and reduce production costs. The outlook is based on the imperative need for infrastructure creation in the country, more homes for the citizens, better and additional commercial and hospitality projects etc.

The recovery in Housing Sector shall also facilitate to improve the demand further. It is also pertinent to note here that the per capita consumption of cement in India falls a way below the world per capita consumption and a country which is on progressive and developing path has to come close to that of world per capita consumption and this factor alone shall give a great hope for cement industry in India.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30^th JUNE 2012

[RS. IN MILLIONS]

Particulars	Quarter ended 30.06.2012 Un-Audited
1) Net sales / Income from operations	696.229
Other Operating Income	--
Total Income	696.229
2) Expenditure
a) (Increase)/ Decrease in Finished Goods and Work in Progress	(5.508)
b) Consumption of Materials	107.839
c) Purchase of Traded Goods	2.612
d) Power and Fuel	231.401
e) Employee Benefits Expense	29.160
f) Depreciation	35.160
g) Other Expenditure	194.524
Total Expenditure	595.189
3) Profit from Operations before other Income, Interests and Exceptional Items	101.040
4) Other Income	4.033
5) Profit before Interests and Exceptional Items	105.073
6) Interests	84.444
7) Profit After Interests but before Exceptional Items	20.629
8) Exceptional Items	--
9) Profit From Ordinary/ Activities Before Tax	20.629
10) Tax Expenses	7.400
11) Net profit from Ordinary/ Activities After Tax	13.229
12) Extraordinary Items	--
13 )Net Profit for the period	13.229
10) Paid-up equity share capital	183.896
(Face value of Rs.10/- each)
11) Reserves excluding Revaluation Reserves as per balance sheet of previous accounting Year	--
12) Earnings Per Share
a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)	0.72
b) Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)	0.72
13) Public Shareholding
Number of Shares	7035467
Percentage of Shareholding	38.26
Promoters and Promoter group
a) Pledged/Encumbered
Number of shares	6618100
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	58.29
Percentage of Shares (as a % of the total share capital of the Company)	35.99
b) Non-encumbered
Number of shares	4736030
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	41.71
Percentage of Shares (as a % of the total share capital of the Company)	25.75

Notes:

· The segment results are not applicable as the company’s main business activity falls within a single segment.

· The above results were reviewed by the Audit committee and approved at the meeting of the Board of Directors held on 13.08.2012

· In terms of Listing Agreement, details of Investors complaints for the quarter ended 30.06.2012 beginning – Nil, received and disposed off – 2 and pending – Nil.

· The figures of previous periods have been regrouped wherever necessary.

FIXED ASSETS:

o Land

o Buildings

o Plant and Machinery

o Vehicles

o Office Equipment

o Furniture and Fixtures

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.52.38
UK Pound	1	Rs.84.00
Euro	1	Rs.67.99

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

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