MIRA INFORM REPORT

Report Date :

01.04.2013

IDENTIFICATION DETAILS

Name :	PRECISION WIRES INDIA LIMITED
Registered Office :	Saiman House, J.A. Raul Street, Off Sayani Road, Prabhadevi, Mumbai - 400 025, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.11.1989
Com. Reg. No.:	11-054356
Capital Investment / Paid-up Capital :	Rs.115.644 Millions
CIN No.: [Company Identification No.]	L31300MH1989PLC054356
TAN No.: [Tax Deduction & Collection Account No.]	MUMP15082E/ MUMP06148C
PAN No.: [Permanent Account No.]	AAACP7555L
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged in manufacture of winding wires of copper.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 7660000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. There appears dip in the profitability of the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealing on a usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities: A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	21.09.2012

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	21.09.2012

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 :	Saiman House, J.A. Raul Street, Off Sayani Road, Prabhadevi, Mumbai - 400 025, Maharashtra, India
Tel. No.:	91-22-24360089, 24376281 (EPABX)
Fax No.:	91-22-24362593, 24370687
E-Mail :	mumbai@pwil.net sharepro@shareproservices.com
Website :	http://www.precisionwires.com
Factory 1 :	Unit I and II : Atlas Wire Plot Survey No.125/2, Amli Hanuman (66KVA) Road, Silvassa – 396 230, Union Territory of Dadra and Nagar Haveli, India
Factory 2 :	Palej Unit : Atlas Wire Plot No.3, GIDC, N.H. No.8, Palej – 392 220, Bharuch, Gujarat, India
Branch Office :	Sector - 4, Gautam Budh Nagar, Noida, Uttar Pradesh, India

DIRECTORS

As on 31.03.2012

Name :	Mr. Mahendra R. Mehta
Designation :	Chairman and Managing Director and Chief Executive Officer
Date of Birth & Age :	83 Years
Experience :	60 Years
Date of Commencement of Employment :	June, 1975
Name :	Mr. Milan M. Mehta
Designation :	Vice Chairman and Managing Director
Date of Birth & Age :	49 Years
Qualifications :	B.S. (E.E.)
Experience :	27 Years
Date of Commencement of Employment :	April, 1996
Name :	Mr. Deepak M. Mehta
Designation :	Whole Time Director
Date of Birth & Age :	55 Years
Qualifications :	B.Com
Experience :	32 Years
Date of Commencement of Employment :	January, 1989
Name :	Mr. P.N. Vencatesan
Designation :	Independent and Non-Executive Director
Date of Birth & Age :	18.08.1926
Qualifications :	Chartered Accountant
Expertise in specific function :	Renowned Management Consultant
Date of Appointment :	Appointed as Additional Director on 11.09.1991 and as Director on 25.09.1992 at the Annual General Meeting and thereafter re-appointed on retirement by rotation from time to time, the last such re-appointment being at the AGM held on 19.09.2009.
Name :	Mr. Vijay M. Crishna
Designation :	Independent and Non-Executive Director
Date of Birth & Age :	08.03.1945
Qualifications :	B.A.(Economics)
Experience :	Expertise in Engineering and I.T. Industry and extensive managerial experience
List of other companies in which directorship held	(a) Godrej Industries Limited (b) Godrej and Boyce Mfg. Company Limited (c) Godrej Agrovet Limited (d) Naoroji Godrej Centre for Plant Research
Name :	Mr. Ashwin P. Kothari
Designation :	Independent and Non-Executive Director
Date of Birth & Age :	14.09.1942
Qualifications :	S.B.(MIT)
Experience :	Expertise in Ferrous and Non Ferrous Metal and Chemical Industries.
List of other companies in which directorship held	a) GeeCee Ventures Limited (b) Five Star Trading and Investment Company Limited (c) Park Avenue Engineering Limited (d) Meenakshi Steel Industries Limited (e) Jatayu Textiles and Indusries Limited (f) Essel Mining and Industries Limited (g) Aditya Birla Health Services Limited (h) Four Dimensions Capital Markets Private Limited (i) New Method Agriplant Private Limited (j) Riverend Agro Private Limited (k) Fresh Water Farms Private Limited (l) Vaibhav Medical and Education Foundation (m) G. D. Birla Medical Research and Education Foundation
Name :	Mr. Pratap R Merchant
Designation :	Independent and Non-Executive Director
Date of Birth & Age :	02.03.1935
Qualifications :	B.Com., CAIIB- I
Expertise in specific function :	Ex-Banker and has rich experience in Banking and Finance Sectors
Date of Appointment :	Appointed as Additional Director on 28.10.1998 and as Director on 23.07.1999 at the Annual General Meeting and thereafter re-appointed on retirement by rotation from time to time, the last such re-appointment being at the AGM held on 19.09.2009.
List of other companies in which directorship held as on 31^st March, 2011 :	a) Setco Automotive Limited b) KJMC Asset Management Company Limited c) GeeCee Ventures Limited (Formerly known as Gwalior Chemical Industries Limited) d) Relcon Infraprojects Limited
Name :	Mr. Pradip Roy
Designation :	Additional Independent and Non-Executive Director

KEY EXECUTIVES

Name :	Ms. Rajni M. Lalwani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5162615	44.65
Bodies Corporate	1734668	15.00
Sub Total	6897283	59.65
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6897283	59.65
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1100	0.01
Sub Total	1100	0.01
(2) Non-Institutions
Bodies Corporate	577334	4.99
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2270094	19.63
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1676316	14.50
Any Others (Specify)	141496	1.22
Directors & their Relatives & Friends	1000	0.01
Non Resident Indians	139496	1.21
Trusts	1000	0.01
Sub Total	4665240	40.34
Total Public shareholding (B)	4666340	40.35
Total (A)+(B)	11563623	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	11563623	0.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacture of winding wires of copper.

Products :

Product Description	Item Code No.
Winding Wires of Enamelled Copper	85441110
Other Winding Wires	85441190

PRODUCTION STATUS (AS ON 31.03.2011)

(A) Capacities and Production - rounded off to the nearest Metric Ton (MT)

I CAPACITY @	Licensed	Installed MTs.
a) Winding Wires made of Copper, all types #	## @@	33540
b) Wire Enamels / Resins **	##	1750

NOTES:

@ As certified by the Managing Director and accepted by the Auditors.

## Licensed Capacity per annum is not indicated due to the abolition of Industrial licenses as per Notification No. 477 (E) dated July 25,

1991 issued under The Industries (Development and Regulation) Act, 1951

** For Wire Enamels/Resins, Capacity clubbed together.

@@	MTs.
Installed Capacity as on 31.3.2010	29100
Add : New capacity addition during the year Installed Capacity as on 31.3.2011	4440
	33540 #

# This excludes an effective capacity of 1500 MTs Per Year of Palej Plant which operated for part of the year.

II PRODUCTION

Winding Wires Made of Copper (Finished Goods)	2010-2011 (MTs.)
	Own Account	Job Work Basis	Total
a) Enamelled Round Wires	16236	4228 **	20464
b) Other - all types	1419	3949	5368
	17655	8177	25832

** Excludes Production of 18 MTs Interunit Enamelled Winding Wires made of copper done by Unit II for Unit Palej on Jobwork basis.

c) Bare Copper Wires / Strips (intermediate Products, used for Capative consumption only)

	MTs 2010-2011	MTs 2009-2010
Jobwork - Inter Unit Unit I Unit II Palej Unit	76 559 141	327 338 0
Total	776	665

d) Waste and Scrap of Copper generated during process on Total Production of items covered under a and b above. (Includes 12 MT(16 MT) scrap generated from Rejected Finished Goods Returned by Customers)	**	1193
**Out of the above, 72 MT (100 MT) of Waste and Scrap of Copper was dispatched for conversion into Copper Rods on Jobwork basis.
e) Wire Enamels / Resins	@	988
@ (Includes 22 (30) MTs, Resin (an Intermediate Product used for Production of Wire Enamel)

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

· Bank of Baroda, Palej – 392 220, Bharuch, Gujarat, India

· BNP Paribas, Fort, Mumbai, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Secured Loans from Banks	52.640	4.940
Foreign Currency Loans - Buyers Credit (from Bank)	240.749	244.659
Working Capital Borrowings (from Bank)	229.281	240.564
Total	522.670	490.163

Banking Relations :	--
Auditors :
Name :	S.R. Divatia and Company Chartered Accountants
Address :	221, Avon Arcade, D.J. Road, Near Railway Station, Vile Parle (West), Mumbai - 400 056, Maharashtra, India
Tel. No.:	91-22-26160791/ 26631923
Fax No.:	91-22-26104926
E-Mail :	mail@srdivatia.com

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions
3000000	Unclassified Shares	Rs.10/- each	Rs.30.000 Millions
	Total		Rs.150.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
11565223	Equity Shares	Rs.10/- each	Rs.115.652 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11563623	Equity Shares	Rs.10/- each	Rs.115.636 Millions
	Add: Forfeiture of 1600 Equity Shares (Amount originally paid up)		Rs.0.008 Million
	Total		Rs.115.644 Millions

Note:

1100000 Shares out of the issued, subscribed and paid up share capital were allotted on conversion of Debentures, in May, 2007.

The details of Shareholders holding more than 5% shares:

Name of the Shareholder	No. of Shares held	% held
Galvawire Agencies Private Limited	1734668	15.00%
Mahendra R. Meh	1551635	13.00%
Sharda M. Mehta	812453	7.00%
Milan M. Mehta (including as Karta of HUF)	787948	7.00%

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

Particulars	No. of Shares held
Equity Shares at the beginning of the year	11,563,623
Equity Shares at the end of the year	11,563,623

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		115.644	115.644	115.644
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1799.269	1698.286	1469.029
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1914.913	1813.930	1584.673
LOAN FUNDS
1] Secured Loans		522.670	490.163	540.871
2] Unsecured Loans		110.705	205.992	25.000
TOTAL BORROWING		633.375	696.155	565.871
DEFERRED TAX LIABILITIES		167.298	178.411	173.937
TOTAL		2715.586	2688.496	2324.481
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1474.366	1478.353	1274.588
Capital work-in-progress		26.232	50.818	45.596
INVESTMENT		5.014	5.017	0.016
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	761.071	487.666	287.195
	Sundry Debtors	1683.451	1918.780	1374.237
	Cash & Bank Balances	270.787	279.902	288.797
	Other Current Assets	57.532	31.300	25.510
	Loans & Advances	245.143	545.741	209.176
Total Current Assets		3017.984	3263.389	2184.915
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1531.787	1453.149	1019.497
	Other Current Liabilities	233.480	584.643	121.865
	Provisions	42.743	71.289	39.272
Total Current Liabilities		1808.010	2109.081	1180.634
Net Current Assets		1209.974	1154.308	1004.281
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2715.586	2688.496	2324.481

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	9317.864	8736.375	6301.933
		Other Income	7.635	12.750	29.967
		TOTAL (A)	9325.499	8749.125	6331.900
Less	EXPENSES
		Cost of Raw Material consumed	8377.838	7667.343	5842.704
		Purchase of Stock-in-Trade	5.486	2.590
		Changes in inventories of Finished Goods, Work-in-progress and Stock-in-Trade	(136.365)	(190.688)
		Employee Benefits Expense	115.643	109.545
		Other Expenses	577.584	519.748
		TOTAL (B)	8940.186	8108.538	5842.704
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		385.313	640.587	489.196
Less	FINANCIAL EXPENSES (D)		59.533	47.982	46.322
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		325.780	592.605	442.874
Less/ Add	DEPRECIATION/ AMORTISATION (F)		129.352	122.474	108.782
	PROFIT BEFORE TAX (E-F) (G)		196.428	470.131	334.092
Less	TAX (H)		54.977	160.128	107.862
	PROFIT AFTER TAX (G-H) (I)		141.451	310.003	226.230
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		35.222	35.966	39.263
Less	APPROPRIATIONS
		Transfer to General Reserve	100.000	230.000	170.000
		Proposed Total Dividend @ Rs.3.00 for the year (Previous year @ Rs.6.00), which includes Interim Dividend @ Rs.1.80 (Rs.2.40), per equity share.	34.691	69.382	50.880
		Corporate Tax on Dividend	5.629	11.365	8.647
	BALANCE CARRIED TO THE B/S		36.353	35.222	35.966
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB Basis	676.023	386.090	232.749
	TOTAL EARNINGS		676.023	386.090	232.749
	IMPORTS
		Raw Materials	1423.677	1330.290	523.332
		Consumable Stores & Spares, Packing Material & Repairs to Plant	7.126	8.281	10.431
		Capital Goods	35.125	190.535	30.665
	TOTAL IMPORTS		1465.928	1529.106	564.428
	Earnings Per Share (Rs.)		12.23	26.81	19.56

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2579.100	2397.100	2314.300
Total Expenditure	2413.000	2324.100	2227.200
PBIDT (Excl OI)	166.200	73.000	87.100
Other Income	01.100	02.400	02.400
Operating Profit	167.300	75.400	89.500
Interest	16.100	10.400	14.400
Exceptional Items	0.000	0.000	0.000
PBDT	151.200	65.000	75.100
Depreciation	31.800	31.500	31.700
Profit Before Tax	119.500	33.600	43.400
Tax	38.800	13.900	13.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	80.600	19.600	29.500
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	80.600	19.600	29.500

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.52	3.54	3.57
Net Profit Margin (PBT/Sales)	(%)	2.11	5.38	5.30
Return on Total Assets (PBT/Total Assets}	(%)	4.37	9.91	9.65
Return on Investment (ROI) (PBT/Networth)		0.10	0.26	0.21
Debt Equity Ratio (Total Debt /Networth)		0.33	0.38	0.36
Current Ratio (Current Asset/Current Liability)		1.67	1.55	1.85

LOCAL AGENCY FURTHER INFORMATION

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	No
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	Yes
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

Unsecured Loan	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Foreign Currency Loans - Buyers Credit (from Banks)	110.705	205.992
Total	110.705	205.992

OPERATIONS

During the fiscal the overall economic and Industrial climate was unfortunately sluggish. The growth in the production of domestic Electrical Equipment Industry was lower. The financial crisis in Western Europe has also cast negative effect on manufacturing sector and economy in general in India.

High rate of interest, inflation, increase in the cost of their primary inputs, power and fuel, substantial volatility in the foreign exchange and increase in cost all around has resulted in the contraction by more than 20% of the production of Capital-Goods-sector impacting their operations.

Despite such adverse economic climate in the Country, the Company has performed reasonably well during the year.

The total production during the year was 24862 M Tons [25832 MT], marginal decrease of about 4%. The overall gross sales income was Rs.Rs.10470.000 Millions. [Rs.976.000 Millions] and income net of taxes Rs. 932.000 Millions (Rs.874.000) Millions. The increase in the sales income, despite marginal fall in production, is due to increase in the cost of primary raw materials consumed, besides more production on own account and less production on job work account.

For the year, the PBDIT is Rs.385.313 Millions, PBDT Rs.325.780 Millions, PBT Rs.196.428 Millions and PAT Rs.141.451 Millions. Their Reserve and Surplus are Rs 1799.269 Millions (Rs.1698.286) Millions at the end of March 2012

Though prices of copper, their principal input remained volatile during the year, the company has generally preferred to have back to back procurement of input to avoid pricing mismatch of the sale of finished goods.

The company continues to be the market-leader in the field of Winding Wires in India. Export efforts continue.

The Company has successfully executed an Order for 765 KV Continuously Transposed Conductors and the EHV

Power Transformer made there from by a renowned Domestic Transformer Manufacturer are satisfactorily working in the field since quiet some time.

Addition in the plant and machinery and civil work during the year is about Rs. 12.000 Millions.

Notwithstanding whatever has been stated in the foregoing paragraphs about the sluggishness in the Capital-Goods sector in their Country during the year, the company continues to be optimistic about future growth in the sector. India being a power-deficit-country, the long term prospects of the Electrical Equipment Manufacturing Industry is bright. Their Government is aware of constraints such as availability of proper grade coal for the thermal plants and has initiated actions in right direction. Their Winding Wires, as you are aware, are used in the manufacture of Electrical Equipment, which again depend on the development of Electrical Power sector. Their Company is looking forward to the future with optimism.

The Company has discharged all financial obligations in time, without delay or default and continues to remain a Dividend paying Company since long time and has low debt- gearing.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company produces Winding Wires made of Copper which are used in the manufacture of both rotating and static electrical equipments. Though there are number of players in the Industry including many in SSI sector, due to quality of their products and loyalty of OEM customers, they continue to remain Industry-Leader despite adverse operational conditions having prevailed during the year.

The overall capacity utilization of the Industry in the Country is either static or marginally lower. This is due to the sluggish demand from Electrical Equipment Manufacturing Sector which did not have adequate orders from Electric-Power-Sector. The competition may continue to be intense. Both Industrial and economic structure of the Industry has been affected due to high Cost of input, inflation, substantial volatility in Forex and overall increase in the Cost. The Company continues to cater to the OEM sector. Due to cumbersome procedural framework coupled with delayed payments from EOU and SEZ Sector, they have reduced their supply to the same for the time being. Emphasis on direct physical export abroad continues and they performed well. They have developed CTC required for EHV 765KV Transformers and such Transformers produced and supplied by a prominent equipment manufacturer to Utility undertaking are in operation since last year.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company's core activity is production and sale of only one product i.e. Winding Wires made of Copper. During the year, the production of the Company marginally reduced by about 4% due to the reason discussed in the foregoing paragraphs.

The energy cost and other administrative expenditure being disproportionate at Palej Plant, which was temporarily revived for production of winding Wire for small quantity has been closed down. Its contribution to the production last year was hardly 2% of the total production of the Company.

However their division at Palej producing Insulating Varnish continues operation satisfactorily and provides important contribution to the quality of their finished product.

OUTLOOK:

Long Term outlook of the Indian Economy, and consequently, electric-power-sector is healthy.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
a. Guarantees given by Bank to third parties	1040.940	83.422
b. Disputed Income Tax Demands (not acknowledged) against which Company / Department has preferred an appeal	--	0.270
c. Disputed Wealth Tax Demands (not acknowledged) against which Company has preferred an appeal	0.340	0.340
d. Disputed demands of Central Excise against erstwhile Atlas Wires Limited pending in Appeal	0.455	0.455
e. Disputed demand of Service Tax Credit on Sales Commission against which Company has preferred appeals After the above demands have been raised, CBEC, vide Circular No. 943/04/2011-CX dated 29.4.2011has clarified that Cenvat Credit on Service Tax paid on Sales Commission is allowable.	--	0.407
f. Disputed demand of Service Tax distributed by Input Service provider against which Appeal is to be made	0.112	0.112
g. Disputed demand of Delhi VAT Department	3.200	--

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2012

(Rs. in Millions)

Sr. No.	Particulars	Quarter Ended		Nine Months Ended
		31.12.2012	30.09.2012	31.12.2012
1	Income from Operations
	(a) Net Sales / Income from Operations	2312.702	2398.705	7276.313
	(Net of Excise Duty)
	(b) Other Operating Income	1.571	(1.614)	1.699
	Total Income from Operations (Net)	2314.273	2397.091	7278.012
2	Expenses
	(a) Cost of Material Consumed	2049.398	2048.835	6508.790
	(b) Purchase of Stock-in-Trade	0.000	0.256	0.445
	(c) Changes in Inventories of Finished Goods,	4.592	87.998	(75.689)
	Work-in-progress and Stock-in-Trade
	(d) Employee benefits expenses	34.613	31.727	99.178
	(e) Depreciation & Amortisation Expense	31.663	31.452	94.905
	(f) Power & Fuel	38.755	43.712	130.304
	(g) Other Expenditure	99.802	111.532	288.689
	Total Expenses	2258.823	2355.512	7046.622
3	Profit (+)/Loss (-) from Operations before Other Income, Finance Cost & Exceptional Items (1 ± 2)	55.450	41.579	231.390
4	Other Income	2.346	2.354	5.838
5	Profit(+)/Loss (-) from ordinary activities before Finance Cost & Exceptional Items (3 ± 4)	57.796	43.933	237.228
6	Finance Cost	14.390	10.356	40.794
7	Profit (+)/Loss (-) from ordinary activities after finance costs but before Exceptional Items (5 ± 6)	43.406	33.577	196.434
8	Exceptional Items	-	-	-
9	Profit (+)/Loss (-) from Ordinary Activities before Tax (7 ± 8)	43.406	33.577	196.434
10	Tax Expenses (Including Deferred Tax)	13.873	13.941	66.653
11	Net Profit (+) /Loss (-) from Ordinary Activities after tax (9 ± 10)	29.533	19.636	129.781
12	Extraordinary Items (net of Tax expenses)	-	-	-
13	Net Profit (+) /Loss (-) for the period (11 ± 12)	29.533	19.636	129.781
14	Paid-up equity share capital (Face value of share Rs.10/- each)	115.636	115.636	115.636
15	Reserves excluding revaluation reserve (as per balance sheet of Previous Accounting year)
16	Earnings Per Share (EPS)
	(i) Earning per Share (before Extraordinary Items) of Rs.10/- each (not annualised)	2.55	1.70	11.22
	(ii) Earning per Share (after Extraordinary Items) of Rs.10/- each (not annualised)	2.55	1.70	11.22
A.	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of Shares	4,666,340	4,666,340	4,666,340
	- % of shareholding	40.35	40.35	40.35
2	Promoters and promoter group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	-	-	-
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)
	- Percentage of shares (as a % of the total share capital of the company)	-	-	-
	b) Non-encumbered
	- Number of Shares	6,897,283	6,897,283	6,897,283
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
	- Percentage of shares (as a % of the total share capital of the company)	59.65	59.65	59.65
	INVESTORS COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	2
	Disposed during the quarter	2
	Remaining unresolved at the end of the quarter	NIL

Notes:

1 Previous year's figures have been regrouped / reworked wherever necessary to make them comparable with the Current Year.

2 The above results have been reviewed by the Audit Committee of the Board and have been approved by the Board of Directors in their meeting held on 11^th February, 2013.

3 The Board of Directors has declared an Interim Dividend of Rs.2.50 (25%) per equity share for the financial year 2012-13 at the above meeting. The Record date for the payment of Interim Dividend has been fixed on 22nd February, 2013. The said Interim Dividend shall be paid within 30 days.

4 The Limited Review for the Nine Months ended 31^st December, 2012 as required under Clause 41 of the Listing Agreement with the Stock Exchanges has been carried out by the Statutory Auditors.

5 The Company is primarily engaged in a single Segment i.e. Business of manufacture of Winding Wires. Therefore, Segment reporting as defined in Accounting Standard AS-17 is not applicable.

FIXED ASSETS:

Tangible Assets:

v Land - Free Hold

v Buildings

v Plant and Machinery

v Vehicles

v Office Equipments

v Furniture and Fixtures

Intangible Assets:

v Technology Transfer Cost

WEBSITE DETAILS:

PROFILE:

Subject was set up in 1989 for the manufacture of Enamelled Copper Winding Wires. It was promoted by erstwhile Atlas Wires Limited (AWL), Mr. Mahendra Mehta, Mr. Deepak Mehta and Mr. Milan Mehta.

Subject has been listed on the Bombay Stock Exchange (523529) and National Stock Exchange (PRECWIRE) since inception.

AWL's first manufacturing facility was set up in 1981 in the western Indian state of Gujarat. Two decades later, in 2001, AWL was amalgamated with subject.

Headquartered in Mumbai, India, subject is the largest manufacturer of Copper Winding Wires in the country and uses a combination of Indian skill and foreign technology to ensure the best possible end-product quality.

Their current installed capacity is about 30,000 metric tonnes/annum. This capacity is further being increased with several expansion projects in the pipeline across various product lines. Subject has three manufacturing facilities located at Silvassa, Dadra Nagar Haveli and Palej, Gujarat.

At subject, they produce winding wires as per various technical specifications including IEC, IS, BS, NEMA and JIS as well as per specific requirements their customers may have.

Subject's customers include many large and medium electrical and electronic equipment manufacturers both in India and abroad. Their wires are widely used in equipment such as:

v Rotating machines (manufacturer and repairer)

v Alternators

v Hermetic motors (for refrigeration and air conditioning equipment)

v Power and Distribution Transformers

v Control and Power supply Transformers

v Ballasts

v Auto Electricals

v Electric hand Tools

v House hold appliances

v Fans

Switchgear, relay and magnet coils

Instruments and audio coils and many others

In recent years, subject has been increasingly targeting overseas markets. In the last fiscal year, exports accounted for over 15% of their sales volume.

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 exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

SMN

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	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.