1. Summary Information

		Country	India
Company Name	IFB INDUSTRIES LIMITED	Principal Name 1	Mr. Bijon Nag
Status	Good	Principal Name 2	Mr. Bikramjit Nag
		Registration #	21-29637
Street Address	14, Taratolla Road, Kolkata – 700 088, West Bengal, India
Established Date	12.09.1974	SIC Code	--
Telephone#	91-33-30489285/30489299	Business Style 1	Manufacturers
Fax #	91-33-24014182/24014579	Business Style 2	Marketers
Homepage	http://www.ifbindustries.com	Product Name 1	Press Tools
# of employees	1286 (Approximately)	Product Name 2	Dies
Paid up capital	Rs. 362,800,000/-	Product Name 3	-
Shareholders	Promoters Group-74.96% Public Shareholding - 25.04%	Banking	Bank of Maharashtra
Public Limited Corp.	YES	Business Period	38 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	Ba (54)
Related Company
Relation –Subsidiary	Country - India	Company Name	IFB Agro Industries Limited
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1612,900,000	Current Liabilities	1524,900,000
Inventories	1092,500,000	Long-term Liabilities	0,000
Fixed Assets	1561,000,000	Other Liabilities	464,400,000
Deferred Assets	0,000	Total Liabilities	1,989,300,000
Invest& other Assets	144,800,000	Retained Earnings	2059,100,000
		Net Worth	2421,900,000
Total Assets	4,411,200,000	Total Liab. & Equity	4,411,200,000
Total Assets (Previous Year)	3891,100,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	7696,300,000	Net Profit	305,400,000
Sales(Previous yr)	6492,100,000	Net Profit(Prev.yr)	503,100,000

MIRA INFORM REPORT

Report Date :

17.09.2012

IDENTIFICATION DETAILS

Name :	IFB INDUSTRIES LIMITED
Formerly Known As :	INDIAN FINE BLANKS LIMITED
Registered Office :	14, Taratolla Road, Kolkata – 700 088, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.09.1974
Com. Reg. No.:	21-29637
Capital Investment / Paid-up Capital :	Rs. 362.800 millions
CIN No.: [Company Identification No.]	L51109WB1974PLC029637
TAN No.: [Tax Deduction & Collection Account No.]	CALI00026F / BLRI01281A
Legal Form :	Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers and Marketers of Press Tools and Dies
No. of Employees :	1286 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 9680000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has achieved a better increase in the sales turnover during 2012. Financial position of the company appears to strong. Trade relations are reported to be decent. Business is active. Payments are reported to be regular and as per commitments. 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

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 :	14, Taratolla Road, Kolkata – 700 088, West Bengal, India
Tel. No.:	91-33-30489285 / 30489299 / 24014917-23 / 30489230
Fax No.:	91-33-24014182 / 24014579
E-Mail :	ifbi_corporate@ifbglobal.com ifb@cal2.vsnl.net.in ifbi_legal@ifbglobal.com
Website :	http://www.ifbindustries.com
Corporate Office :	Plot No. IND-5, Sector – I, East Kolkata Township, Kolkata – 700 107, West Bengal, India
Tel. No.:	91-33-24428286 / 87 / 89 / 90 / 91 / 39849524
Fax No.:	91-33-24427779 / 1003 / 39849676
E-Mail :	ifbi_legal@ifbglobal.com
Factory 1 :	JL-71, P O Bishnupur, Gangarampur, West Bengal, India
Factory 2 :	62, 64 and 66, Corlim Industrial Estate, Corlim, Ilhas, Goa – 403 110, India
Factory 3 :	E-3, New Industrial Area II, Mandideep – 462 046, Bhopal, Dist. Raisen – 462 046, Madhya Pradesh, India
Factory 4 :	16/17, Visveswariah Industrial Estate, Whitefield Road, Bangalore – 560 048, Karnataka, India
Factory 5 :	L-1, Verna Electronic City, Verna, Salcete – 403 722, Goa, India
Tel. No.	91-832-2783303-05 / 07
Fax No.	91-832-2783306
E-Mail :	verna/ifb@ifbglobal.com
Factory 6 :	14, Taratolla Road, Kolkata - 700 088, West Bengal, India

DIRECTORS

As on 31.03.2012

Name :	Mr. Bijon Nag
Designation :	Executive Chairman
Name :	Mr. Bikramjit Nag
Designation :	Executive Chairman and Managing Director
Name :	Mr. Rathindra Nath Mitra
Designation :	Director
Name :	Mr. Somen Bal
Designation :	Director
Name :	Dr. Tridibesh Mukherjee
Designation :	Director
Name :	Mr. Radharaman Bhattacharya
Designation :	Director
Date of Birth/Age :	Mr. R Muralidhar
Designation :	Director
Name :	Mr. Sudip Banerjee
Designation :	Director

KEY EXECUTIVES

Name :	Mr. G Ray Chowdhury
Designation :	Company Secretary
Audit Committee:
Name :	Dr. Rathindra Nath Mitra
Designation :	Chirman
Name :	Mr. Radharaman Bhattacharya
Designation :	Member
Name :	Mr. Somen Bal
Designation :	Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	292771	0.72
Bodies Corporate	30,080,428	74.24
Sub Total	30,373,199	74.96
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	30,373,199	74.96
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	517,854	1.28
Financial Institutions / Banks	2,980	0.01
Foreign Institutional Investors	176,528	0.44
Sub Total	697,362	1.72
(2) Non-Institutions
Bodies Corporate	2,785,052	6.87
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	4,559,845	11.25
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,297,223	3.20
Any Others (Specify)	806,115	1.99
Foreign Corporate Bodies	691,030	1.71
Non Resident Indians	90,003	87,767
Sub Total	9,448,235	23.32
Total Public shareholding (B)	10,145,597	25.04
Total (A)+(B)	40,518,796	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total
Total (A)+(B)+(C)	40,518,796	--

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Press Tools and Dies.

Products :

Item Code No. (ITC Code)	Product Description
4501100	Washing Machine
7089900	Fine Blanked Components
4622900	Machine Tools
5169000	Microwave Oven

GENERAL INFORMATION

No. of Employees :	1286 (Approximately)
Bankers :	· State Bank of India · Bank of Maharashtra · United Bank of India · State Bank of Mysore · Allahabad Bank · Canara Bank · State Bank of Bikaner and Jaipur · Chinatrust Commercial Bank

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Associates/Subsidiaries :	· IFB Agro Industries Limited · Travel Systems Private Limited · Thai Automotive and Application Limited · Global Automotive and Appliances Limited
Investment Company :	IFB Automotive Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity Share	Rs.10/- Each	Rs.650.000 millions
30000000	Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.300.000 millions
Total			Rs. 950.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35518796	Equity Shares	Rs.10/- each	Rs.355.200 millions
3050000	Add : Forfeited shares	Rs.2.50/- each	Rs.7.600 millions
			Rs.3628.800 millions

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particular	Nos.	Rs. In millions
At the beginning of the period	35,456,8963,546	354.600
Issued during the period - Employees Stock	61,900	0.600
Purchase Scheme	--	--
Outstanding at the end of the period	35518796	355.200

b. Rights, preferences and restrictions attached to equity shares

The company has only class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share other than the partly paid shares which have been forfeited.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company.

The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Details of shareholders holding more than 5% shares in the company

Particular	Nos.	Rs. In millions
Equity shares of Rs. 10 each fully paid:
1. Nurpur Gases Private Limited	16.92%	6,010,416
2. IFB Automotive Private Limited	41.55%	14,756,833
3. Asansol Bottling and Packaging Company Private Limited	6.94%	2,466,428

d. Shares issued under Employees Stock Purchase Scheme

During the year the Company has issued 61,900 (31 March 2011: 701,850) fully paid equity shares of Rs. 10 each to its employees under IFB Industries Limited - Employees Stock Purchase Scheme 2008 at premium of Rs. 5 per share.

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		362.800	362.200	355.175
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2059.100	1749.800	2383.643
4] (Accumulated Losses)		0.000	0.000	(1201.069)
NETWORTH		2421.900	2112.000	1537.749
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		154.200	100.200	37.483
TOTAL		2576.100	2212.200	1575.232
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1561.000	1242.500	754.745
Capital work-in-progress		45.100	145.900	144.911
INVESTMENT		99.700	461.700	106.424
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1092.500	888.300	853.318
	Sundry Debtors	466.300	390.500	279.825
	Cash & Bank Balances	524.200	269.100	365.444
	Other Current Assets	17.100	12.600	0.000
	Loans & Advances	605.300	480.500	399.271
Total Current Assets		2705.400	2041.000	1897.858
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1090.500	854.800	838.734
	Other Current Liabilities	434.400	583.400	258.234
	Provisions	310.200	240.700	231.738
Total Current Liabilities		1835.100	1678.900	1328.706
Net Current Assets		870.300	362.100	569.152
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2576.100	2212.200	1575.232

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	7696.300	6492.100	5080.867
		Sales of services	333.200	305.300	259.182
		Other Income	114.500	178.000	228.732
		TOTAL (A)	8144.000	6975.400	5568.781
Less	EXPENSES
		Cost of Raw materials consumed	3035.900	2614.200	3068.852
		Purchase of stock-in-trade	1802.500	1175.500	--
		(Increase) /decrease in finished goods,	(131.800)	(37.600)	--
		work-in-progress and stock-in-trade Cost of Spares sold	47.100	39.000	--
		Employee benefit expense	698.700	630.000	507.314
		Other expenses	2165.200	1759.500	--
		Exceptional Expense	(15.000)	-
		Operating and administration expenses	0.000	0.000	1328.099
		TOTAL (B)	7602.600	6180.600	4904.265
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		541.400	794.800	664.516
Less	FINANCIAL EXPENSES (D)		3.200	2.600	2.574
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		538.200	792.200	661.942
Less/ Add	DEPRECIATION/ AMORTISATION (F)		148.800	104.100	86.815
	PROFIT BEFORE TAX (E-F) (G)		389.400	688.100	575.127
Less	TAX (I)		84.000	185.000	37.483
	PROFIT AFTER TAX (G-I) (J)		305.400	503.100	537.644
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(697.969)	(1201.069)	(1541.614)
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	--
		Dividend	0.000	0.000	(37.099)
		Tax on Dividend	0.000	0.000	(160.000)
	BALANCE CARRIED TO THE B/S		(392.569)	(697.969)	(1201.069)
	EARNINGS IN FOREIGN CURRENCY
	FOB Value of exports		18.900	17.400	4.508
	IMPORTS
		Raw Materials	747.400	541.400	628.077
		Stores & Spares	79.200	8.700	0.365
		Trading Goods	0.000	0.000	619.435
		Capital Goods	124.800	437.000	127.635
	TOTAL IMPORTS		951.400	987.100	1375.512
	Earnings Per Share (Rs.) Basic and Diluted		8.61	14.24	16.87

QUARTERLY RESULTS

Rs. In Millions

PARTICULARS	30.06.2012
Type
Net Sales	1991.200
Total Expenditure	1871.100
PBIDT (Excl OI)	120.100
Other Income	14.400
Operating Profit	134.500
Interest	0.400
PBDT	134.100
Depreciation	41.100
Profit Before Tax	93.000
Tax	30.000
Profit After Tax	63.000
Net Profit	63.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.75	7.21	9.65
Net Profit Margin (PBT/Sales)	(%)	5.06	10.60	11.32
Return on Total Assets (PBT/Total Assets}	(%)	9.13	20.96	21.68
Return on Investment (ROI) (PBT/Networth)		0.16	0.09	0.37
Debt Equity Ratio (Total Liability/Networth)		0.76	0.79	0.86
Current Ratio (Current Asset/Current Liability)		1.47	1.21	1.43

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	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	No
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	No

REVIEW OF OPERATION

The Company completed another year of modest performance with strong topline growth. All business segments posted sound growth in revenues and enhanced their market standing. Gross Turnover for the year grew by 22% to Rs. 9399.200 millions. Net Turnover other than service and other income at Rs. 7515.600 millions grew by 18%. Steady performance by Appliance business grew by 24%. Engineering Division grew by 12%. However, due to adverse material cost variance, forex loss, product mix etc. the pretax profit as compared to last year drastically dropped by 47.76% to Rs. 359.400 millions. Earnings per share for the year stand at Rs. 8.61.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments

India's consumer market is on growth track despite global recession. The Indian consumer durable industry is estimated at Rs 400 billion and is expected to reach Rs 500 billion by 2015. The consumer durable sector contributes around 8% in the index of industrial production (IIP). The factors that have influenced this industry positively for the past few years were greater affordability, changing life style and awareness of branded products with rapid urbanization. However, the penetration level of many appliances like refrigerators, washing machines, MWO and AC is still very low. In union budget 2012, lack of any concrete announcement and lack of incentives failed to counter sluggish demand in the industry and lack of guidance on any precise time-lines for roll-out of GST is a bit of disappointment for Retail and Consumer Product Sector. However, five year extension for weighted deduction of 200% on R and D expenditure for in-house facilities is a welcoming decision. The increase in excise duty and service tax from 10% to 12% will straight away affect all segments of society that have the required purchasing power. Growth in consumer durables is likely to accelerate as disposable income and techno-efficiency rises with increasing rural demand.

The Rs. 1,600 billion Indian auto component industry has been witnessing a moderation in its revenue growth since the beginning of fiscal 2011-12 following the deceleration in sales volume growth across all automobile segments. As per industry estimates, out of total turnover of the Indian auto component industry, around 60% is derived from sales to domestic OEMs, around 25% comes from sale to the domestic replacement market and 15% is derived from export. While the long term prospects for the industry remain strong in line with the outlook for the OEM segment, the industry faces strong challenge in the form of threat of low cost imports, currency volatility and ability to invest on product development to be able to move up the value chain. Over and above operating cost pressures, the PAT margins of several auto component manufacturers have also been weighed down by increase in depreciation and interest costs. This was consequent to the large capex incurred by these entities to meet the rising production schedules of OEMs and towards establishing production infrastructure to supply parts for new models launched by OEMs. With slowdown in sales, particularly in the PV segment, and relatively lower volume growth of some of the new models, the utilization of vendor capacities remained sub-optimal.

Segment wise performance.

The Home Appliance Division has improved its turnover as compared to last year. Washing machine sale in value term for the year recorded a growth of 20.85% over last year. Out of which front loader washing machine sale has grown by 22.3% and top loaders have grown by 10.5% over last year. Microwave oven sale in value term recorded a growth of 29% over last year. However, in spite of 20% growth the PBDIT for the division reduced by 38% as compared to last year. The reduction in profit is due to increase in material cost, staff cost, loss on forex and increases in operating and administrative costs.

The company has entered the commercial laundry equipment business and has launched the same pan India. Enquiry of this segment has been encouraging and the company expects moderate sales from this category going forward. The Company has also entered kitchen appliances and modular kitchen business.

The Engineering Division recorded growth in sales by 12.7% and PBDIT of the division marginally raised by 8.35% as compared to last year. To revamp and increase its capacity the company modernized its tool room at Bangalore, installed two new fine blanking presses as well as modernize the old ones.

Outlook

The overall economic outlook seems to be favourable for recovery in the global economic environment and the Indian economy is also poised to grow. We expect Appliances growth in their product categories to be robust and thus we would expect 20%+ sales growth. Their focus would be to improve their service function as well as to invest in technology for better performance. We thus implemented SAP and this will help us to bring down inventory as well as to react faster to market needs apart from bringing about other improvements. Their focus would also be to improve their distribution channel by penetrating deeper into smaller towns.

We have already completed their expansion-cum-modernization of their washing machine factory at Goa. This expansion would ensure state-of-the-art new generation washing machines of higher capacities and the excess capacity we would use to market for OEM sales through buyers in Europe, Africa, Asian countries, etc. However launch of their new models were delayed .We would also like to strengthen their direct sales channel as well as their customer retention programs in order to sell more IFB products to the same customer leading to more business per customer on a recurring basis due to recurring service income via AMC's as well as sale of additives, etc.

To compete with their competitors and to offer high quality products to their customers, the company modernised its R and D Lab at Goa.

The new ultra range in front loaders, it's pricing and feature combination is significantly superior to competitors' products. The new top loader range will stabilize the platform for the expansion of this product category. The fully automatic Top loaders account for 35% of the total washing machine market and a significant presence in this segment is important. The new range will set the base for a growth from the present level of 3.5% in market share terms.

Their industrial equipment range is very large and comprehensive. In this fiscal, we have an opportunity to expand and specifically target high end hotels, restaurants and clubs for which we are currently participating in tenders in many places across the country. The increase in number of IFB Points and the results we are experiencing are very encouraging.

The entry into ACs and Refrigerators in this year is an obvious opportunity to extend their market presence and enter market segments which are the biggest by turnover and this will help product placements across the entire channel.

IFB has invested in its Fine Blanking operations in order to meet the growing demands of the Indian automobile industry. However, we have also de-risked by marketing their fine blanked products to other industries which are also high growth. We are focusing on domestic demand and have built up capacities to meet the same. We will look at exports at a later date as the long working capital cycle is not suitable for us. As a strategy, we are identifying areas where their business share is low and can be increased substantially to negate any de growth in automotive sector.

They have invested in modernizing their Tool Room to international standards and added new fine blanking presses as well as modernizing the old ones. This jump in investments will, they hope, ensure significant increase of their sales by 31st March, 2013.

Liquidity position of the Company was comfortable and the company remains debt free. Company remained focused on its working capital management. Interest and dividend income from placement of temporary surplus funds with mutual funds increased on account of higher surplus fund and increase in interest rates to Rs 45.700 millions compared to Rs 19.700 millions at the end of previous year. As in the past, the Company has maintained excellent relationship with its bankers and was able to avail and negotiate favourable terms for various banking facilities.

Commitment and Contingencies:

(Rs. In millions)

	March 31,2012	March 31, 2011
i) Outstanding capital commitments for tangible assets	225.800	127.600
ii) Outstanding capital commitments for intangible assets	1.700	1.800
iii) Disputed sales tax matters, excise duties, income tax contested in appeals (These disputes mostly relate to arbitrary disallowances of claims of the Company under various state laws, which are under appeal. The management is of the view that these demands are not sustainable in law and is hopeful of succeeding in appeals.)	68.900	48.400
iv) Indemnity bonds executed in favour of excise and customs	15.000	10.000
v) Guarantees given by the bankers on behalf of the Company	11.800	6.100
vi) Letter of credits	22.600	53.800
vii) Corporate Guarantee for Advance licenses	60.300	149.800
viii) Claims against the Company not acknowledged as debts (#)(@)	7.600	47.000
ix) Corporate Guarantee to bank on behalf of Associate Company	10.000	10.000

(#) The Company obtained a bank guarantee of Rs. 1.600 millions in connection with execution of a civil contract awarded by State Health Department, Government (Govt.) of West Bengal. Following a dispute the Health Department, Govt. of West Bengal invoked the said Bank Guarantees whereupon the Company challenged such invocation by way of a writ petition before the Hon'ble Calcutta High Court. The Hon'ble High Court was pleased to allow interim order of injunction dated May 22, 2003 restraining the respondent not to give any effect to the invocation of guarantees till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon'ble Calcutta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31st March 2012 and 31st March 2011.

(@) As at 31st March 2011, claims against the company not acknowledged as debts included a claim relating to material rejection amounting to Rs. 45.400 millions. During the year the company has entered into a mutual compromise settlement wherein the Company has settled and paid an amount of Rs. 15.000 millions as settlement amount. The same has been recognized as an exceptional item for the year ended 31st March

2012.

Websites Details:

Profile:

IFB Industries Limited originally known as Indian Fine Blanks Limited started their operations in India during 1974 in collaboration with Hienrich Schmid AG of Switzerland. The product range includes Fine Blanked components, tools and related machine tools like Straighteners, Decoilers, Strip loaders and others.

The Engineering divisions are located at Kolkata and Bangalore. The Bangalore unit, apart from Fine Blanked components, manufactures motors for White goods as well as automotive applications.

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.55.73
UK Pound	1	Rs.89.61
Euro	1	Rs.71.34

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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

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.