MIRA INFORM REPORT

Report Date :

29.08.2013

IDENTIFICATION DETAILS

Name :	MERCATOR LIMITED
Registered Office :	3rd Floor, Mittal Tower, B-Wing, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.11.1983
Com. Reg. No.:	11-031418
Capital Investment / Paid-up Capital :	Rs.244.892 Millions
CIN No.: [Company Identification No.]	L63090MH1983PLC031418
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Service provider of Coal Mining, Oil and Gas, Shipping, Dredging and Logistics Solutions.
No. of Employees :	1000 (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 26790000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. The company has incurred a huge net loss from operations during 2013. The ratings also take into consideration the presence of the group in diversified business segments and the measures being taken by the management to reduce its cost of borrowings by paying of a substantial amount of debt during the year under review. Trade relations are fair. Business is active. Payment terms are regular and as per commitments. In view of experienced promoters and management, the subject can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A (Long Term Bank Facilities)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	05, October 2012

Rating Agency Name	CARE
Rating	A1 (Short Term Bank Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	05, October 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Not Divulged
Designation :	Accounts Executive
Contact No.:	91-22-40373333
Date :	27.08.2013

LOCATIONS

Registered Office :	3rd Floor, Mittal Tower, B-Wing, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-66373333/ 40373333
Fax No.:	91-22-66373344
E-Mail :	mercator@mercator.in investors@mercator.in dalvi@mecator.in
Website :	www.mercator.in

DIRECTORS

As on: 31.03.2013

Name :	Mr. H. K. Mittal
Designation :	Executive Chairman
Date of Birth/Age :	16.01.1950
Qualification :	M. Tech. from Indian Institute of Technology (IIT), Roorkey.
Date of Appointment :	01.08.1992
Name :	Mr. Atul J. Agarwal
Designation :	Managing Director
Date of Birth/Age :	26.07.1958
Qualification :	Fellow Member of Institute of Chartered Accountants of India
Date of Appointment :	01.08.1998
Name :	Mr. Manohar Bidaye
Designation :	Director
Date of Birth/Age :	10.11.1963
Qualification :	Master of Commerce (M.Com) from the University of Mumbai and has a Degree in Law (LLB - Gen.). He is also a Senior Member of The Institute of Company Secretaries of India.
Date of Appointment :	26.05.1994
Name :	Mr. K. R. Bharat
Designation :	Director
Name :	Mr. Kapil Garg
Designation :	Director
Name :	Mr. M. M. Agrawal
Designation :	Director
Name :	Mr. M. G. Ramkrishna
Designation :	(upto August 29, 2012)

KEY EXECUTIVES

AUDIT COMMITTEE/ SHAREHOLDERS GRIEVANCE COMMITTEE
Name :	Mr. Manohar Bidaye
Designation :	Chairman
Name :	Mr. K. R. Bharat
Designation :	Member
Name :	Mr. Atul J. Agarwal
Designation :	Member
Name :	Ms. Priya Vishwanathan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	80077816	32.70
Bodies Corporate	18406250	7.52
Sub Total	98484066	40.22
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	98484066	40.22
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	78423	0.03
Financial Institutions / Banks	2168318	0.89
Central Government / State Government(s)	1000	0.00
Foreign Institutional Investors	36176260	14.77
Any Others (Specify)	0	0.00
Sub Total	38424001	15.69
(2) Non-Institutions
Bodies Corporate	16650518	6.80
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	74699422	30.50
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	11385981	4.65
Any Others (Specify)	5248085	2.14
Clearing Members	1418563	0.58
Directors & their Relatives & Friends	169250	0.07
Trusts	4536	0.00
Office Bearer	268100	0.11
Non Resident Indians	3387636	1.38
Sub Total	107984006	44.09
Total Public shareholding (B)	146408007	59.78
Total (A)+(B)	244892073	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)	244892073	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl. No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)			Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	H K Mittal	4,66,54,200	19.05	8500000	18.22	3.47	19.05
2	Archana Mittal	2,63,27,400	10.75	7500000	28.49	3.06	10.75
3	AHM Investments Private Limited	1,84,06,250	7.52	0	0.00	0.00	7.52
4	Atul J Agarwal	54,60,966	2.23	0	0.00	0.00	2.23
5	Manjuli Agarwal	5,59,000	0.23	0	0.00	0.00	0.23
6	Shalabh Mittal	3,61,250	0.15	0	0.00	0.00	0.15
7	Aayush Atul Agarwal	3,17,500	0.13	0	0.00	0.00	0.13
8	Arooshi Atul Agarwal	3,17,500	0.13	0	0.00	0.00	0.13
9	Adip Mittal	80,000	0.03	0	0.00	0.00	0.03
	Total	9,84,84,066	40.22	16000000	16.25	6.53	40.22

Note: (*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Lotus Global Investments Limited	14229669	5.81	5.81
2	Cresta Fund Limited	5650000	2.31	2.31
3	Albula Investment Fund	5175644	2.11	2.11
4	Kotak Mahindra (International) Limited	5132000	2.10	2.10
	Total	30187313	12.33	12.33

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Lotus Global Investments Limited	14229669	5.81	5.81
	Total	14229669	5.81	5.81

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	AHM Investments Private Limited	89,00,000	3.63
	Total	89,00,000	3.63

BUSINESS DETAILS

Line of Business :	Service provider of Coal Mining, Oil and Gas, Shipping, Dredging and Logistics Solutions.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

1000 (Approximately)

Bankers :

• State Bank of India
• ICICI Bank Limited
• Axis Bank Limited
• HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Debentures	4000.000	4500.000
External commercial borrowings	829.437	1029.525
Term loans from banks	1988.198	3691.046
SHORT TERM BORROWINGS
Loans repayable on demand
Working capital facilities from scheduled banks	84.861	232.072
Total	6902.496	9452.643

Notes:

(i) Security details

a) Debentures referred in (A) above are secured by first mortgage on specified vessels of the company on pari-passu basis with other lenders and first pari- passu charge on the specified immovable property.

b) External Commercial Borrowings referred in (B) above are secured by exclusive charge on specified vessels of the company of which Rs. 265.148 Millions (P.Y. Rs. 255.783 Millions) additonally secured by charge on loan extended to subsidiary as well as charge on cash flows of specified vessels.

c) Term Loan refered in (C) above are secured by first charge on specified vessels, on pari passu basis with other lenders and includes Rs. 1305.045 Millions (P.Y. Rs. 1350.000 Millions) additonally secured by charge on loan extended to subsidiary as well as charge on cash flows of specified vessels.

d) Foreign Currency loan included in Term loans from banks in (C) is secured by first charge on specified vessels of the company on pari passu basis with other lenders.

(ii) Terms of repayment and interest are as follows:

Loan from	ROI*	Balance installments as on 31.03.2013	Year of maturity F.Y. ending	Amount outstanding 31.03.2013	Amount outstanding 31.03.2012
Debentures	-	-	2013	-	112.500
Debentures	9.50%	2	2015	1600.000	2500.000
Debentures	9.50%	1	2015	1000.000	1000.000
Debentures	12.40%	3	2019	1500.000	1500.000
Indian Banks	-	-	2016	-	1600.000
Indian Banks	-	-	2013	-	249.920
Indian Banks	12.65%	10	2018	773.360	800.000
Indian Banks	-	-	2013	-	750.000
Indian Banks	-	-	2013	-	124.960
Indian Banks	12.85%	10	2018	531.685	550.000
Indian Banks	6.76%	8	2017	1030.786	1211.795
Indian Banks	3.73%	6	2016	829.437	1010.341
Indian Banks	5.31%	12	2019	265.148	255.783
				7530.416	11665.229
Less: Shown in current maturities of long term debt				712.781	2444.727
Balance shown as above				6817.635	9220.571

Working capital facilities from Scheduled Banks are secured by 1st charge on all receivables and other current assets of the company on pari-passu basis and second charge on specified vessels.

Banking Relations :	--
Auditors :
Name :	Contractor, Nayak and Kishnadwala Chartered Accountants
Subsidiaries - Fellow/ Step down subsidiaries :	Mercator International Pte Limited (MIPL) (Singapore) Mercator Oil and Gas Limited (MOGL) (India) Mercator Petroleum Limited (India) Oorja Resources India Private Limited (India) Mercator FPSO Private Limited (India) Mercator Offshore Holdings Pte Limited (MOHPL) (Singapore) Mercator Offshore (P) Pte Limited (Singapore) Oorja Holdings Pte. Limited (OHPL) (Singapore) Mercator Lines (Singapore) Limited (MLS) (Singapore) Mercator Offshore Limited (Singapore) Ivorene Oil Services Nigeria Limited (Singapore) Varsha Marine Pte. Limited (Singapore) - Liquidated during the year with effect from 11th Jan 2013 Vidya Marine Pte. Limited (Singapore) - Liquidated during the year with effect from 11th Jan 2013 Mercator Lines (Panama) Inc Chitra Prem Pte. Limited (Singapore) Target Ship Management Pte. Limited (Singapore) - Ceased to be subsidiary from 15th March 2013 Oorja 1 Pte. Limited (Singapore) Oorja 2 Pte. Limited (Singapore) Oorja 3 Pte. Limited (Singapore) Oorja Mozambique Limitada (Mozambique) MCS Holdings Pte. Limited (Singapore) Oorja (Batua) Pte. Limited (Singapore) PT Karya Putra Borneo PT Indo Perkasa (IPK) Oorja Indo Petangis Four (Indonesia) Oorja Indo Petangis Three (Indonesia) Oorja Indo KGS (Indonesia) Broadtec Mozambique Minas Limitada (Mozambique) PT Mincon Indo Resources (Jakarta) Bima Gema Permata PT (Jakarta) Nuansa Sakti Kencana PT (Jakarta) Varsha Vidya Inc (Panama)
Enterprises over which Key Management Personnel exercise significant control :	AAAM Properties Private Limited Ankur Fertilizers Private Limited AHM Investments Private Limited Mercator Healthcare Limited
Enterprises over which Directors/Relative of Directors/Key Management Personnel/Relative of Key Management Personnel exercise significant influence. :	MLL Logistics Private Limited Zicom Electronic Security Systems Limited Vaitarna Marine Infrastructure Private Limited Rishi Holding Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
350000000	Equity Shares	Rs.1/- each	Rs.350.000 Millions
20000000	Preference Shares	Rs.100/- each	Rs.2000.000 Millions
	Total		Rs.2350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
244892073	Equity Shares	Rs.1/- each	Rs.244.892 Millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Equity Shares
Particulars	As at March 31, 2013
Number of shares at the beginning of the year	244892073
Add: Shares issued during the year	-
Number of shares at the end of the year	244892073

Terms/Rights attached to Equity shares

The company has two class of shares referred to as equity shares having a par value of Rs.1/- and preference shares having a par value of Rs.100/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian rupees. The dividend whenever proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

For the period of five years immediately preceding the date as at which the balance sheet is prepared:

(i) No shares were allotted pursuant to contracts without payment being received in cash.

(ii) No bonus shares were issued.

(iii) No shares were bought back.

Details of shareholders holding more than 5 percent equity shares in the company

Name of the shareholder	As at March 31,2013
Equity shares of Rs. 1 each fully paid	No of shares	% of holding
H. K. Mittal	46654200	19.05
Archana Mittal	26327400	10.75
AHM Investments Private Limited	18406250	7.52
Lotus Global Investments Limited	14229669	5.81

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	244.892	244.892	244.892
(b) Reserves & Surplus	6454.309	8491.129	9758.928
(c) Money received against share warrants	0.000	259.600	259.600
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	6699.201	8995.621	10263.420
(3) Non-Current Liabilities
(a) long-term borrowings	6817.635	9220.571	10576.887
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	73.553	467.148	365.684
(d) long-term provisions	22.881	28.588	18.297
Total Non-current Liabilities (3)	6914.069	9716.307	10960.868
(4) Current Liabilities
(a) Short term borrowings	280.981	429.694	1136.333
(b) Trade payables	790.655	886.163	6152.030
(c) Other current liabilities	5931.850	2773.714	2161.906
(d) Short-term provisions	4.278	4.589	3.462
Total Current Liabilities (4)	7007.764	4094.160	9453.731
TOTAL	20621.034	22806.088	30678.019
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6988.668	16348.293	16996.893
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Assets held for disposal	5346.245	0.000	0.000
(iv) Capital work-in-progress	0.000	0.000	0.000
(v) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	35.548	42.549	46.218
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2911.797	2886.461	6453.621
(e) Other Non-current assets	3.852	0.268	0.030
Total Non-Current Assets	15286.110	19277.571	23496.762
(2) Current assets
(a) Current investments	5.000	5.000	15.000
(b) Inventories	95.573	174.089	234.864
(c) Trade receivables	2086.607	1989.630	1607.083
(d) Cash and cash equivalents	1551.332	412.400	4427.311
(e) Short-term loans and advances	1595.417	826.895	803.000
(f) Other current assets	0.995	120.503	93.999
Total Current Assets	5334.924	3528.517	7181.257
TOTAL	20621.034	22806.088	30678.019

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5514.942	5479.768	6372.408
		Other Income	253.188	726.852	651.666
		TOTAL (A)	5768.130	6206.620	7024.074
Less	EXPENSES
		Ship operating expenses	4039.674	4335.896	5018.447
		Employee benefit expenses	131.233	170.053	126.191
		Impairment of assets	811.800	0.000	0.000
		Other expenses	526.397	132.707	161.049
		TOTAL (B)	5509.104	4638.656	5305.687
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		259.026	1567.964	1718.387
Less	FINANCIAL EXPENSES (D)		1326.909	1529.693	1492.513
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1067.883)	38.271	225.874
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1091.555	1189.961	1166.255
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(2159.438)	(1151.690)	(940.381)
Less	TAX (H)		15.000	35.000	39.325
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(2174.438)	(1186.690)	(979.706)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(991.500)	195.200	1174.900
	BALANCE CARRIED TO THE B/S		(3165.900)	(991.500)	195.200
	EARNINGS IN FOREIGN CURRENCY
		Shipping Income	935.578	717.013
		Interest Income	17.995	160.814
		Dividend Income	17.316	0.000
		Other Income	17.080	1.932
	TOTAL EARNINGS		987.969	879.759	1328.500
	IMPORTS
		Stores & Spares	153.915	71.863
		Capital Goods (Including CWIP)	0.000	301.450
	TOTAL IMPORTS		153.915	373.313	NA
	Earnings/ (Loss) Per Share (Rs.)		(8.88)	(4.85)	(4.12)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(37.70)	(19.12)	(13.95)
Net Profit Margin (PBT/Sales)	(%)	(39.16)	(21.02)	(14.76)
Return on Total Assets (PBT/Total Assets}	(%)	(10.49)	(5.06)	(3.07)
Return on Investment (ROI) (PBT/Networth)		(0.32)	(0.13)	(0.09)
Debt Equity Ratio (Total Debt/Networth)		1.06	1.07	1.14
Current Ratio (Current Asset/Current Liability)		0.76	0.86	0.76

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

(Rs. In Millions)

Particular	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term debt
1) Debentures (Refer Note 2.4 (i) (a))	100.000	612.500	168.750
2) External commercial borrowings (Refer Note 2.4 (i)(b))	265.148	236.599	66.975
3) Term loans from banks (Refer Note 2.4 (i) (c) and (d))	347.633	1595.629	1496.462
Interest accrued but not due on borrowings	168.200	233.337	276.825
Interest accrued and due on borrowings	8.712	10.443	7.717
Unpaid dividend*	5.124	6.805	0.000
For Other liabilities
Salaries & wages payable	12.525	11.274	8.966
Statutory dues payables	64.134	55.499	91.461
Liability towards cash flow hedges (Refer Note 4.8)	5.451	1.660	-
Advance from customers	26.110	-	16.566
Advance for sale of asset	4902.901	-	-
Other payables**	25.912	9.968	28.183
Total	5931.850	2773.714	2161.906

Note:

* There is no amount, due and outstanding, to be credited to Investor Education and Protection Fund.

** Other payables include incomplete voyages (net off income) accrued but not due.

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	Yes
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	Yes
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

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWINGS
Working capital facilities from scheduled banks	196.120	197.622
Total	196.120	197.622

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10430978	22/07/2013 *	508,750,000.00	Axis Bank Limited	CBB BR. AXIS HOUSE, GR. FLOOR, WADIA INTL. CENTRE, PANDURANG BUDHKAR MARG WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B80748999
2	10427018	25/03/2013	2,992,800,000.00	State Bank of India	OVERSEAS BRANCH, 2ND FLOOR, 'THE ARCADE', WORLD TRADE CENTRE, CUFFE PARADAE, MUMBAI, MAHARASHTRA 400005, INDIA	B75507178
3	10333505	24/05/2012 *	1,235,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	B39897673
4	10294934	29/11/2012 *	550,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	B63069249
5	10263095	18/10/2012 *	800,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	B61852380
6	10193208	22/04/2011 *	1,000,000,000.00	Axis Trustee Services Limited	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B11926839
7	10192071	26/10/2010 *	2,500,000,000.00	Axis Trustee Services Limited	MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA -400005, INDIA	A98969728
8	10139086	09/02/2009 *	1,500,000,000.00	Axis Trustee Services Limited	MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	A56123367
9	10131402	29/10/2009 *	1,125,000,000.00	BANK OF INDIA	138, ROBINSON ROAD,, #01-01, #02-01, # 03-00, THE CORPORATE OFFICE, SINGAPORE, -068906, SINGAPORE	A73466989
10	10037014	28/02/2013 *	2,025,000,000.00	Axis Bank Limited	AXIS HOUSE, 2ND FLOOR. WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B70974761
11	90229990	07/03/2011 *	200,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B08407660
12	90231204	16/03/2004 *	300,000,000.00	UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
13	90232550	23/01/2003 *	180,000,000.00	UTI BAK UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
14	90231108	22/04/2004 *	120,000,000.00	UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
15	90232544	27/09/2002 *	120,000,000.00	UTI BAK UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
16	90229504	26/02/2004 *	50,000,000.00	UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
17	90229367	14/10/1998 *	72,200,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER; WTC COMPLEX, COLOBA, MUMBAI, MAHARASHTRA - 400005, INDIA	-
18	90226928	02/12/2011 *	1,450,000,000.00	State Bank of India	OVERSEAS BRANCH, CUFF PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B27277490
19	90229081	15/05/2004 *	5,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
20	90232485	03/02/1995	960,000.00	SYNDICATE BANK	BACKBAY RECLAMATION BRANCH, BOMBAY, MAHARASHTRA - 400020, INDIA	-

Note: * Date of charge modification

FINANCIAL HIGHLIGHTS:

During the year, the income from operations on a consolidated basis was Rs. 37340.000 Millions as against Rs. 37000.000 Millions in the previous year. After providing loss for the minority interest of Rs. 1200.000 Millions (previous year profit Rs. 100.000 Millions); the loss after provision for tax was Rs. 3720.000 Millions as against net profit of Rs. 210.000 Millions in the previous year.

On a standalone basis, the income from operations for the year was Rs. 5510.000 Millions (Rs. 5480.000 Millions in the previous year). The Company suffered a loss of Rs. 2170.000 Millions (Rs. 1190.000 Millions in the previous year).

OPERATIONS:

Highlights of the consolidated operations of Mercator during the year includes, commencement of commercial operations at the new coal mining concession acquired in Indonesia last year. The first shipment of coal from the new mine was dispatched in August 2012.

The Mobile Offshore Production Unit (MOPU) and Floating Storage Offshore Unit (FSO), which is deployed on a nine year contract in Nigeria is operating successfully.

During the year, Oil and Natural Gas Corporation Limited handed over its Rig, Sagar Samrat for conversion into a Processing Unit. The EPC contract is under execution at an overseas yard and the work is progressing satisfactorily.

The E and P activities at two blocks awarded to the Company under New Exploration Licensing Policy (NELP VII) are progressing well. The required land has been acquired and environmental clearances have also been received.

During the year, Mercator entered into early termination and settlement agreements in respect of chartered-in bulk carriers. The compensation paid under the agreements has been charged off during the year. Further Mercator sold its Very Large Ore Carrier (VLOC) and incurred a book loss on the same.

The Company's Aframax tanker, which had suffered an accident in December 2011 was sold for scrapping during the year and the insurance claim was partly realised. The proceeds were used to prepay debt.

The company entered into a MOA for the sale of its Very Large Crude Carrier (VLCC) to its WOS in Singapore. The VLCC has now been refinanced by a foreign currency loan with extended maturity.

During the year the company also entered into a MOA for the sale of an Aframax tanker, which was delivered subsequently.

The company assessed the carrying value of the vessels based on the discounted cash flows of the future earnings and recognised an impairment provision in the books in respect of the VLCC and aframax tanker.

The one-time charges to the Profit and Loss arising from early termination agreements, sale of VLOC and impairment provision have resulted in the group reporting a loss for the year. However, these initiatives together with the cash flow from the realisation of the insurance claim have resulted in reducing the long term liabilities of the company and improving the cash flows over the next few years.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

COAL

Coal is the second largest source of primary energy after oil.

Coal is the fastest growing global energy source. Coal consumption increased by nearly 60% from 4600 Million Tonnes in 2000 to 7200 Mio MT in 2010. Although coal was the fastest growing primary energy source from 200010, this growth was unevenly distributed. Most of the growth in coal consumption came from Asia, particularly China, while the growth in the OECD region was sluggish.

Economic growth is likely to be robust in both China and India over the medium-term (five years). Coal is the key fuel in both countries and since economic growth and energy use are highly correlated, coal demand prospects for both countries are bullish going forward. Therefore, global coal demand is expected to grow for the next several years.

Coal reserves and resources are widely dispersed over the globe and supply is not concentrated in a few regions, as is the case for natural gas and oil. The key exporting countries, Indonesia, Australia, Russia, South Africa, Colombia, and the United States are politically stable. Nevertheless, the fact that around 90% of coal exports come from only these six countries suggests the need for further diversification.

(Source: International Energy Agency)

The coal prices have fallen by almost 30% as compared to the last financial year. The main reason for reduction in coal prices is the slowing demand from Europe and U.S.A. where Gas is replacing Coal and end users switching to imports of lower grade in China.

China Coal market

China's share in global coal production is almost four times that of Saudi Arabia's production of oil. China's share in global coal consumption is more than twice that of the demand for oil in the United States. (The United States is the largest consumer of oil). Overall, the Chinese domestic coal market is more than three times that of the entire coal trade worldwide. In 2013 China became the largest coal importer in the world; however, China's coal imports make up just 5% of its total coal consumption. Therefore, any fluctuation in Chinese production and demand has the ability to have a large impact on global coal trade.

Indian Coal market

India's heightened usage of coal has seen a growing trend for the past few decades, and the nation is set to surpass China as a major coal importer by 2014. Indian coal plants imported 142 million tons of thermal coal in 2012, a 39% increase from 2011, Bloomberg reports.

During the 12th Five year plan (2013-2018), India plans to add 105,000 MW. The present installed generation capacity in India is more than 216,000 MW and over 105,000 MW of new power capacity is under construction. Power generating companies are entering into long term supply agreements especially for imported coal for securing coal supply. (Source: Independent Power Producers' Association of India)

Estimated domestic demand is set to increase from 658 MMT to 980 MMT by 2018 (an increase of 322 MMT) Projected coal production by CIL is 615 MMT by 2018 Projected demand -supply gap is about 365 MMT by 2018.

(Source: CIL, India)

The overall long-term demand of coal is closely linked to the performance of the end-user sectors. In India, the end-use sectors of coal mainly include electricity, iron and steel and cement. Demand from the unorganised small scale sector comprising primarily of the brick and ceramic industry is relatively large though not firm/ regular as users switch between coal, firewood and biomass depending on their relative prices. Other industries using coal have only a marginal impact on the long-term demand for coal. The charts show the projected sector-wise coal consumption in India by the end of the 12th Plan.

Indonesian Coal

Indonesia is world's largest thermal coal exporter. Indonesian coal production has grown from 230 Mio MT in 2008-09 to 410 Mio MT in 2012-13. With its proximity to India and China, Indonesia will continue to remain one of the largest exporter of thermal coal.(Source : Indonesian Chamber of Commerce)

(All values in Mio MT)

Mercator is present across Coal mining, Coal procurement and Coal logistics.

Mercator has been in the business of Coal transportation and Logistics since 1995 and served many Thermal Power Stations in India with end to end solutions to the Customers. Mercator pioneered the handling of Coal at Haji Bunder Port, Mumbai. Mercator forayed into Coal mining and Coal procurement businesses in 2007. Currently Mercator has 3 mines in Indonesia.

Mercator exported about 7.63 Mio MT from Indonesia in FY 2013 thereby becoming one of the leading market players in India.

OIL AND GAS

Global oil demand forecast is projected to be about 90.5 million barrels per day for the year 2013 as compared to 89.70 mbopd in 2012. A significant change affecting global demand has been the supply from non-OPEC countries which is estimated to go up from 52.90 mbopd in 2012 to 54 mbopd in 2013. This non-OPEC supply is largely attributed in the rapid growth of US oil production, thus reducing the need of OPEC crude in the global market. As per EIA; US crude oil import fell by 9% to 6.08 mbopd in 2012. This is further likely to decline to about 4 mbopd by 2017. Crude imports to China increased by 7% to 5.43 mbopd in 2012 from 5.09 mbopd in 2011. It looks obvious that the import balance as regard OPEC crude will shift from West to East. Although the imports in China seem to offset declining imports in the US, a word of caution about the challenges presently faced by Chinese economy needs to be considered.

In view of the same; any indigenous production of crude oil will be more than welcome. Mercator is having two blocks in the Cambay Basin, where the initial 2D/3D studies have been completed and the first well will be drilled in the next year. Global crude oil prices of around USD 100 per barrel indicates an optimistic outlook for the exploration of the Oil blocks for Mercator.

Global E and P spending is expected to reach about USD 650 bn in 2013 which is about 7% higher than 2012. Companies are basing the 2013 spending plan on oil prices being about USD 90 per barrel and US natural gas price of about USD 3.50 per mnbtu. This increase in spending is spread across globally and is likely to result in an increase in demand for service companies.

As mentioned above; if increased global expenditure is based on price of bench mark crude at USD 90 per barrel, the demand for oil field services is bound to increase. West Africa presents unique business model at these prices. Over the years their Industry has perfected the art of offshore marginal fields development, production and export. With perfection one has also seen cost going down whereby threshold level of production has continuously reduced. This lower cost and production break even has provided an impetus to the fructification of many more marginal fields which previously had been left idle. We have seen a spate of marginal fields coming into production using FPSOs; MOPUs; FSOs etc. Mercator has been successful in bagging one such contract. As we continue to explore more opportunities in West Africa; we feel confident that coming times will see Mercator having a stronger foot print in that area.

India has tried to replicate the West Africa model and commenced development of marginal fields like D-6 and Cluster 7. Their success will ensure more such opportunities in the field of oil services. , Mercator has been awarded the contract for conversion of the iconic Rig Sagar Samrat into a MOPU. Mercator hopes to explore more such opportunities in coming times.

SHIPPING:

Wet Bulk Carriers

The Baltic Clean Tanker Index opened at 645 points in April 2012, and closed at 691 points on March 31, 2013. The Baltic Dirty Tanker Index remained subdued during the year with opening at 819 points in April 2012 and closing at 661 points on March 31, 2013.

The year 2012 brought a small cheer to the tanker owners with rates for the largest tankers on the busy trade route rising on speculation that traders and oil companies were booking cargoes for January before the Christmas holidays. Daily earnings for the large crude carriers on the Middle East-to-Asia voyage rose to $16,860 per day.

There was less activity in the crude segment with rates showing no appreciation. This was the result of adequate availability of tonnage. In the spot market the tanker rates remained weak with rates only reacting to geo-political situations.

In 2012, 121 crude tankers (25.3 million DWT) and 94 product tankers above 25,000 DWT (5.4 million DWT) were delivered and 62 crude carriers (9.3 million DWT) and 50 product tankers (2.5 million DWT) were demolished. Consequently, the capacity of the crude fleet grew 3.8% while the product fleet grew 2.2%. The capacity of the fleet of tankers below 25,000 DWT increased 3.0%. The China's order for fifty VLCCs is viewed as alarming as it will exacerbate oversupply.

The outlook for the shipping sector in short term is likely to remain tough. It may improve in medium term and looks better in long term in view of new building orders recording lowest in last 5 years.

Dry Bulk Carriers

The Baltic Dry Bulk Index opened at 934 points in April 2012, and closed at 910 points on March 31, 2013

FY 2013 was another challenging year for the dry bulk shipping industry which provided no respite from the already lack luster freight markets. The surplus tonnage ratio further deteriorated with further addition of tonnage. About 98 million DWT of dry bulk vessels were delivered during the period. The Baltic Dry Index touched a new bottom at 903. To conclude the year did not provide any encouragement to the ship owners and the crisis continued.

The supply and demand imbalance is expected to continue through the next year. Demand is expected to rise though tepid and so would be the supply. The imbalance would continue that would only provide all the comfort to charterers. The ship owners would likely remain cautious and curb expenses to counter the very soft freight market. The Chinese economy and trade does have a noticeable impact the dry bulk trade. If the Chinese imports of coal and iron ore improve, it may provide some cheer to the industry.

In spite of all the challenges, Mercator outperformed the Average Industry Market Rate. In Tanker segment Average TCE rate per day achieved for the FY 2013 was around USD 15898 against Average Industry Market rate of around USD 12771. In Dry Bulk segment TCE rate per day achieved was around USD 13,750 as against the Average Industry Market rate of around USD 7448. Company's proactive initiative of de-risking and liquidity enhancement measures have resulted it being in a strong position to face the industry challenges and also take advantage of the market to explore growth opportunities.

Mercator would continue to strive to enhance its strong relations with clients. The company would trade with caution to achieve sustainable growth.

DREDGING

Dredging is underwater excavation of soil. This activity is associated with deepening of channels in ports; construction of new ports; reclamation of land; beach nourishment; sand mining; shore protection - dykes; trenching - pipeline laying; dredging canals and rivers; lakes; reservoirs and intake water column for power plants.

The dredging activity around the Indian coast though currently subdued; is likely to pick up during coming 2-3 years as many projects are expected to take off around east and west coast of India. The Projects around the East coast include a Container terminal at Diamond harbor and a new port at Sagar island both under Kolkatta port. The Gopalpur port dredging is already under progress and so is the expansion of Vizag port with deepening of inner harbor and the expansion of the outer harbor in JV with the Japanese govt. A new major port is coming up south of Kakinada and north of Ennore. A Captive port north of Cuddalore and expansion of Tuticorin port in Tamilnadu completes the projects that are in pipeline. In west coast, LNG terminals at Kochi, deepening of New Mangalore, JNPT deepening / expansion, dredging at Pipavav, Dahej, Hazira, Kandla outer tuna buoy, dredging at Jamnagar and other projects around Gujarat coast are expected to throw up opportunities.

As more ports are developed, the requirement to maintain them increases the dredging activity. Upgrading / increasing navigable depths of existing ports results in increased dredging requirement. Further, emerging trends in shipbuilding like ultra-big ships also made it imperative on port developers and operators to go for dredging to increase the draft of the channels. The total dredging requirement between FY11-12 and FY15-16, including minor ports, is estimated to be 996 million cum. Of this, maintenance dredging is expected to account for 414 million cum.

The Maritime Agenda 2010-20 of India envisages increasing draft in all major ports to a minimum of 14 metres and in some ports to 17 metres. Dredging projects worth over Rs.200 billion have been planned up to 2020.

Mercator has successfully carried out dredging at a number of ports viz. Paradip Port; New Manglore Port and Angre Port.

OPERATIONAL AND FINANCIAL PERFORMANCE

Mercator Group has diversified operations with its own fleet of Tankers, Bulk Carriers; Dredgers and a Floating Production Units (FPU). Mercator also has coal mine licences in Indonesia and Mozambique. Mercator has signed Production Sharing Contract with Government of India in respect of two oil blocks in the Cambay basin in Western India awarded under NELP-VII. Mercator, in consortium, has been awarded a contract by ONGC for conversion of Mobile Offshore Drilling Unit (MODU) into Mobile Offshore Production Unit (MOPU).

The consolidated income from the operations was Rs. 37330.000 Millions for the year as compared to Rs. 37000.000 Millions in the previous year. The operating profits were Rs. 5060.000 Millions as against Rs. 5830.000 Millions in the previous year. Loss After Tax and Minority Interest was Rs. 3720.000 Millions (previous year profit of Rs. 210.000 Millions).

Coal Mining, Procurement and Logistics:

Mercator has economic interest in 3 coal mines in Indonesia and 1 in Mozambique. Mercator has further established itself as a coal procurement and logistics provider and has been considered as a preferred and reliable coal supplier from Indonesia.

During the year; the new coal mine at Batuah, Indonesia commenced commercial operations.. This project was operationalized within 20 months Mercator has executed the entire project including construction of about 26 KM haul road; bridges; jetty; crushing and conveyor installations with its own team by employing some innovative solutions.

Overall, Mercator sold 7.63 million MT (previous year 7.35 mn MT) of coal Total turnover of Rs. 2007 cr (previous year Rs. 23170.000 Millions) was achieved. This contributed about 54% of the total operating income (previous year 62%). Although volumes increased marginally, the fall in the coal prices during the year affected sales realisations.

Oil and Gas:

Offshore performance:

Mercator owns one Mobile Offshore Production Unit (MOPU) and one Floating Storage Offloading Unit (FSO) which are deployed at EBOK field in Nigeria under long term contract with UK listed Afren Plc. Both these MOPU and FSO collectively called Floating Production Unit (FPU) are performing well. MOPU has a processing capacity of 50,000 barrels oil per day whereas FSO has storage capacity of 1.2 million barrels oil.

EPC project awarded by ONGC Ltd. for conversion of their Mobile Offshore Drilling Unit ("MODU") 'Sagar Samrat' into a Mobile Offshore Production Unit ("MOPU") is progressing satisfactorily. The project completion timeline has been extended due to changes in design and scope.

In this segment; Mercator achieved total turnover of Rs. 6100.000 Millions compared to Rs. 1990.000 Millions in previous year. This has contributed about 16% of the total operating income (previous year 5%).

Oil Blocks:

Mercator has Production Sharing Contracts with the Government of India for exploration of Petroleum in two blocks under the Seventh New Exploration Licensing Policy round (NELP-VII). The "S-Type" blocks are situated onshore in the prolific Cambay Basin, Gujarat, India and cover an area of about 180.22 Sq. Km. The exploratory drilling programme has been finalised and is expected to commence later this year.

Tanker (Wet Bulk) performance

Mercator's tanker fleet consists of a Very Large Crude Carrier (VLCC), Aframaxes, Product tankers and Chemical tanker.

Mercator had 7 own tankers of aggregate capacity of 740,193 DWT at the beginning of the year and 1 in-chartered chemical tanker of 19,996 DWT. During the year; one aframax tanker of 109,227 DWT that had met with an accident in the previous year; was scrapped. A part of the insurance claim has been received from the insurers. Consequently, at the end of the year Mercator had 6 own tankers of 630,966 DWT and 1 in-chartered tanker of 19,996 DWT. Of these; one VLCC of 299,235 DWT was sold to a subsidiary in Singapore and one aframax tanker of 90,607 was also sold. Subsequent to year end; 1 MR tanker of about 36,032 DWT was acquired.

The proceeds of the insurance claim received in respect of the Aframax tanker that met with accident were used to prepay debt. The VLCC, which was funded by high cost INR debt, was contracted to be sold to a step down subsidiary and the high cost rupee debt was refinanced by a dollar denominated loan with extended tenor. As a consequence, the Company was able to substantially reduce the debt during the year.

The tanker business achieved a turnover of Rs. 3330.000 Millions as compared to Rs. 2900.000 Millions in the previous year. The numbers of operating days were reduced by about 5% to 2479 days (previous year 2618 days). The time charter equivalent (TCE) at USD 15,898 was flat as compared to USD 15,884 in the previous year. Overall contribution from the tanker division was 9% (previous year 8%) of the total operating income.

Dry Bulk performance

Mercator's bulk carrier fleet comprises of Geared and Gearless Panamaxes; Kamsarmaxes and a Very Large Ore Carrier (VLOC). At the beginning of the year, there were 15 own bulk carriers with aggregate tonnage of 1,340,510 DWT and 3 chartered-in bulk carriers with an aggregate capacity of 278,340 DWT. One VLOC of 279,022 DWT was sold. Further, two chartered-in vessels with aggregate tonnage of 186,540 DWT were re-delivered under early termination agreements as the cost of chartering the vessles was higher than the earnings of these vessels.

Consequently, at the end of the year; there were 14 own bulk carriers of aggregate capacity of 1,061,488 DWT and one chartered in vessel of 91,800 DWT. The proactive measures of early termination of long term charters and sale of VLOC will have positive impact on cash flows of the company going forward.

Mercator achieved a turnover of Rs. 6270.000 Millions Rs.7330.000 Millions previous year). The vessel operating days decreased by about 9% over the last year to 6,044 days (previous year 6619 days). TCE at USD 13,719 too declined by about 32% against previous year of USD 20,069. This segment contributed about 17% of the total operating income (previous year 20%).

Dredging performance

At the beginning of the year, Mercator has 5 dredgers having aggregate capacity of 26,100 Cubic meter and one Cutter Suction Dredger. With 1710 operating days (previous year 1349), Mercator achieved a turnover of Rs. 1560.000 Millions (Previous year Rs. 1610.000 Millions). This segment contributed about 4% of total operating income (previous year 4%).

CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Counter guarantees issued by the Company for guarantees obtained from bank (net of margin).	419.112	524.383
Counter guarantees issued by the Company for guarantees obtained from bank on behalf of subsidiaries.	62.650	25.605
Corporate guarantees issued by the company on behalf of subsidiaries.	9948.787	10132.089

FIXED ASSETS

Tangible Assets

• Land
• Office Premises
• Vessels
• Furniture and Fixtures

• Vehicles
• Office Equipments
• Computer Equipments

AS PER WEBSITE DETAILS

Press Release

MERCATOR EXPECTS INTEREST COST EASING TO AID NOS THIS YEAR

May 20, 2013

In terms of business, Patwardhan says the company’s coal volumes were flat in FY13. However, he expects FY14 volumes to be 'substantially better' than FY13.

Prasad Patwardhan, CFO, Mercator Lines says the company has managed to “significantly” reduce its debt on a standalone basis.

“We started the year with a debt of over Rs. 12000.000 Millions and the net debt on the standalone books as of March 31, 2013 is about Rs. 6250.000 Millions,” he told CNBC-TV18.

On a consolidated basis, the net debt of the company stands at Rs. 31000.000 Millions, which is about Rs.2500.000 Millions lower than what it was last year. “In the current financial year, on a standalone basis, we hope to post a significantly improved performance. Our interest cost will be substantially lower this year as compared to last year,” Patwardhan says.

In terms of business, Patwardhan says the company’s coal volumes were flat in FY13. However, he expects FY14 volumes to be “substantially better” than FY13.

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.68.36
UK Pound	1	Rs.106.03
Euro	1	Rs.91.47

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--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.