MIRA INFORM REPORT

Report Date :

11.12.2013

IDENTIFICATION DETAILS

Name :	ARTSON ENGINEERING LIMITED
Registered Office :	11^th Floor, Hiranandani Knowledge Park, Technology Street, Powai, Mumbai – 400076, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	18.09.1978
Com. Reg. No.:	11-020644
Capital Investment / Paid-up Capital :	Rs.36.920 millions
CIN No.: [Company Identification No.]	L27290MH1978PLC020644
TAN No.: [Tax Deduction & Collection Account No.]	MUMA36954B
PAN No.: [Permanent Account No.]	AAACA5924H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of chemical process equipment and providing services of design, engineering procurement services, project exports, export of specialty equipments like resin plants, floating suction assemblies, jacking assemblies, pressure vessels and heat exchangers
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Company
Payment Behaviour :	Slow but delayed
Litigation :	Exist
Comments :	Subject is a subsidiary of Tata Project Limited, a Tata Group Company. The company is declared as a sick company by the Board for Industrial and Financial Reconstruction. Management has registered the case vide case no 152/2004 with BIFR under section 3 (1) (O) of the Sick Industrial Companies Act 1985, the order on which for approval of rehabilitation proposal is pending. The networth of the company is fully eroded. However, business is active. Payment terms are slow and delayed. The company can be considered for business dealings on a safe and secured 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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

Name :	Mr. Sijju Ganesh
Designation :	Accounts Executive
Contact No.:	91-8655036860
Date :	05.12.2013

LOCATIONS

Registered Office :	11^th Floor, Hiranandani knowledge Park, Technology Street, Powai, Mumbai – 400076, Maharashtra
Tel. No.:	91-22-66255600
Mobile No.:	91-8655036860 (Mr. Sijju Ganesh)
Fax No.:	91-22-66255614
E-Mail :	artson@bom3.vsnl.net.in artson@vsnl.com artson@hathway.com artson@artson.net vnp@artson.net
Website :	www.artson.net
Location :	Owned
Nashik Factory :	Plot No. D-5, MIDC, Ambad, Nashik - 422 010, Maharashtra, India.
Tel. No.:	91-253-6578500
E-Mail :	ael.nsk@artson.net
Kuwait office :	P.O. Box 46331, Fahaheel – 64014, Kuwait
Tel. No.:	+965 94099908
E-Mail :	tsnathan2007@gmail.com

DIRECTORS

As on 31.03.2013

Name :	Mr. Vinayak Deshpande
Designation :	Chairman
Date of Birth :	21.07.1957
DIN No.:	00036827
Name :	Mr. H. H. Malgham
Designation :	Directors
Name :	Mr. A. K. Misra
Designation :	Directors
Date of Birth :	03.10.1945
DIN No.:	00396404
Name :	Mr. Michael Bastian
Designation :	Directors
Date of Birth ;	05.08.1944
DIN No.:	00458062
Name :	Mr. Nalin Shah
Designation :	Directors
Date of Birth :	13.02.1947
DIN No.:	00882723
Name :	Mr. Pralhad Pawar
Designation :	Directors
Name :	Mr. Shashikant Oak
Designation :	Special Director
Date of Birth :	19.02.1959
DIN No.:	06557071

KEY EXECUTIVES

Name :	Mr. Sijju Ganesh
Designation :	Accounts Executive

SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	27690000	75.00
Sub Total	27690000	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27690000	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2875	0.01
Financial Institutions / Banks	1400	0.00
Foreign Institutional Investors	770	0.00
Sub Total	5045	0.01
(2) Non-Institutions
Bodies Corporate	1121676	3.04
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 millions	6835612	18.51
Individual shareholders holding nominal share capital in excess of Rs.0.100 millions	1071925	2.90
Any Others (Specify)	195742	0.53
Non Resident Indians	195742	0.53
Sub Total	9224955	24.99
Total Public shareholding (B)	9230000	25.00
Total (A)+(B)	36920000	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)	36920000	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Names of Shareholders	No. of Shares	Percentage of Holding
Tata Projects Limited	27690000	75.00
Total	27690000	75.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Names of Shareholders	No. of Shares	Percentage of Holding
Sarnam Trading and Mercantile Private Limited	400000	1.08
Total	400000	1.08

BUSINESS DETAILS

Line of Business :	Manufacturing of chemical process equipment and providing services of design, engineering procurement services, project exports, export of specialty equipments like resin plants, floating suction assemblies, jacking assemblies, pressure vessels and heat exchangers.
Monitoring Agency :	Bank of India
Exports :
Products :	Finished Goods
Countries :	Not Divulged
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

500 (Approximately)

Bankers :

· Bank of India

· Corporation Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and Advances from Related Parties*	193.039	104.019
Vehicle Loan**	0.000	0.090
Short Term Borrowings
Loans Repayable on Demand
From Banks*	252.748	203.248
Total	445.787	307.357

Long Term Borrowings

* Term Loan from the Holding Company in terms of the Sanctioned Scheme of BIFR dated 18th December 2007 secured against the immovable property and all title deeds of the property.

** Secured by hypothecation of the motor vehicle.

Maturity Profile of Long term borrowings

Maturity Profile	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Loans and Advances from Related Parties	(Secured)	(unsecured)
1-2 Years	0.000	0.000
2-3 Years	0.000	180.000
3-4 Years	37.000	0.000
Beyond 4 Years	156.039	0.000
Total	193.039	180.000

Based on an in-principle approval granted by the Holding Company for moratorium in repayment as proposed by the Company, the maturity profile of the loans and their classification into Current and Non-current has been done for the current year.

Short Term Borrowings

* Working Capital loan is secured by first charge by way of hypothecation of inventories, books debts and other Current Assets.

Banking Relations :	--
Statutory Auditors :	Chokshi and Chokshi Chartered Accountants
Concurrent Auditors :	Patel and Deodhar Chartered Accountants
Holding Company :	Tata Projects Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Re. 1/- each	Rs.150.000 Millions
200000	Preference Shares	Rs.100/- each	Rs.20.000 Millions
	Total		Rs.170.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36920000	Equity Shares	Re.1/- each	Rs.36.920 Millions

1. Reconciliation of the number of shares

Equity Shares	Number of Shares	Rs. In Millions
At the beginning of the year	36920000	36.920
Issued during the year	--	--
Outstanding at the end of the year	36920000	36.920

2. Terms/rights attached to equity shares

The Company’s issued, subscribed and paid-up capital comprises of equity shares only and no preference share have been issued. The Company’s paid-up capital comprises only one class i.e. equity shares having par value of Re.1 per share. Each holder of equity share is entitled to one vote per share.

The liability of the members is limited

The Company’s shares are listed on the Bombay Stock Exchange Limited (BSE)

Restriction on distribution of Dividend

Pursuant to the Provisions of the Sanctioned Scheme, the Company is not permitted to declare any dividend to the equity shareholders without the prior approval of the BIFR/Monitoring Agency (MA) during the period of rehabilitation.

Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

Equity Shares	Number of Shares
Equity shares allotted as fully paid bonus shares by capitalization of securities premium	-
Equity shares allotted as fully paid-up pursuant to contracts for consideration other than cash	-
Equity shares bought back by the Company	-

Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
Tata Projects Limited (Holding Company)	27690000	75.00%

Reduction in paid-up value of equity shares

Pursuant to the provisions of the Sanctioned Scheme, effective 26th December 2007 the paid-up value of the equity shares has been reduced from Rs.10 per share to Re.1 per share fully paid-up. On reduction, the paid-up capital of the Company was reduced to Rs.9.230 comprising of 9230000 equity shares of Re.1 each. On 4th January 2008, the Company has allotted 27690000 equity shares of Re.1 each to Tata Projects Limited. Consequent to the allotment of these shares, the Company has become a subsidiary of Tata Projects Limited (shareholding of 75% in the Company’s paid-up capital). The Company’s paid-up capital has thus been increased to Rs.36.920 Millions comprising of 36920000 equity shares of Re.1 each.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	36.920	36.920	36.920
(b) Reserves & Surplus	(590.725)	(196.746)	(63.757)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(553.805)	(159.826)	(26.837)
(3) Non-Current Liabilities
(a) long-term borrowings	373.039	107.737	118.411
(b) Deferred tax liabilities (Net)	0.000	0.120	17.035
(c) Other long term liabilities	21.322	24.134	2.009
(d) long-term provisions	3.091	2.351	0.000
Total Non-current Liabilities (3)	397.452	134.342	137.455
(4) Current Liabilities
(a) Short term borrowings	282.785	363.248	246.000
(b) Trade payables	185.178	183.298	205.526
(c) Other current liabilities	330.637	320.188	500.337
(d) Short-term provisions	1.211	0.449	1.713
Total Current Liabilities (4)	799.811	867.183	953.576
TOTAL	643.458	841.699	1064.194
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	102.253	120.878	130.348
(ii) Intangible Assets	0.197	0.329	0.015
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	144.057	87.965	11.900
(e) Other Non-current assets	37.105	16.008	45.500
Total Non-Current Assets	283.612	225.180	187.763
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	101.598	97.127	87.397
(c) Trade receivables	166.556	417.467	371.186
(d) Cash and cash equivalents	17.747	15.234	13.421
(e) Short-term loans and advances	17.067	10.436	105.714
(f) Other current assets	56.878	76.255	298.713
Total Current Assets	359.846	616.519	876.431
TOTAL	643.458	841.699	1064.194

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	589.989	603.318	1359.250
		Other Income	2.487	5.173	0.173
		TOTAL (A)	592.476	608.491	1359.423
Less	EXPENSES
		Cost of raw materials and components consumed	241.960	101.301	375.582
		Project Execution Expenses	491.230	416.274	820.059
		(Increase)/Decrease in Inventories and Contracts in Progress	4.197	(1.834)	(47.567)
		Employee Benefits expense	95.464	107.236	75.908
		Operating, establishment and Other Expenses	56.595	40.478	43.397
		Exceptional Items	5.806	1.305	0.000
		Extraordinary Items	0.000	1.668	0.389
		TOTAL (B)	895.252	666.428	1267.768
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(302.776)	(57.937)	91.655
Less	FINANCIAL EXPENSES (D)		72.797	21.553s	32.372
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(375.573)	(79.490)	59.283
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.526	55.388	16.624
	PROFIT BEFORE TAX (E-F) (G)		(394.099)	(134.878)	42.659
Less	TAX (H)		(0.120)	(1.889)	(2.825)
	PROFIT AFTER TAX (G-H) (I)		(393.979)	(132.989)	45.484
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(196.746)	(63.757)	(109.237)
	BALANCE CARRIED TO THE B/S		(590.725)	(196.746)	(63.757)
	EARNINGS IN FOREIGN CURRENCY		49.691	21.949	323.371
	Earnings Per Share (Rs.)		(10.67)	(3.56)	1.23

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(66.50)	(21.86)	3.35
Net Profit Margin (PBT/Sales)	(%)	(66.80)	(22.36)	3.14
Return on Total Assets (PBT/Total Assets}	(%)	(85.25)	(18.28)	4.24
Return on Investment (ROI) (PBT/Networth)		0.71	0.84	(1.59)
Debt Equity Ratio (Total Debt /Networth)		(1.18)	(2.95)	(13.58)
Current Ratio (Current Asset/Current Liability)		0.45	0.71	0.92

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
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)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
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	No

LISTING DETAILS:

CASE DETAILS

BENCH:-BOMBAY

Lodging No.:-

CPL/511/2013

Filing Date:-

30/07/2013

Reg. No.:-

CP/528/2013

Reg. Date:-

06/09/2013

Petitioner:-	M/S. ADVANCE PAINTA PRIVATE LIMITED	Respondent:-	ARTSON ENGINEERING LIMITED
Petn.Adv.:-	PRITESH VASANT BHAGAT (660)

District:- MUMBAI

Bench:- SINGLE
Status:- Pre-Admission Category:- COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT

Next Date:- 10/01/2014 Stage:- FOR DIRECTION [ORIGINAL SIDE MATTERS]

Coram:- HON'BLE SHRI JUSTICE N.M. JAMDAR

Last Date:- 03/12/2013 Stage:- FOR ACCEPTANCE

Act :- Companies Act and Rules 1956 Under Section:- 439

UNSECURED LOAN:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans & Advances from Related Parties	180.000	0.000
Sales tax Deferrement Loan	0.000	3.628
Short Term Borrowings
Loans Repayable on Demand
From Banks	30.037	0.000
Loans and Advances from Related Parties	0.000	160.000
Total	210.037	163.628

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

(Rs. In Millions)

Particular	31.03.2013	31.03.2012	31.03.2011
Current maturities of long term debt	2.401	89.356	95.003
Total	2.401	89.356	95.003

CORPORATE INFORMATION

The Company is a company limited by shares incorporated under the Companies Act, 1956. The Company’s Registered Office is situated at Mumbai. The Company’s shares are listed on the Bombay Stock Exchange (BSE) and the Script Code is 522134. The Company was incorporated in the year 1978. Since inception, the Company has commissioned on turn-key basis several fuel storage and handling facility systems. The Company operates in the business segment of Oil, Gas and Hydrocarbon (OG&H) Industry. The Company was referred to the BIFR as a sick company under the provisions of Section 3 (1) (O) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Company’s reference as a sick company was registered under Case No. 152/2004 with the BIFR. At the hearing held on 27th November 2007, the BIFR sanctioned the Rehabilitation Scheme of the Company and the Order sanctioning the scheme of rehabilitation was received by the Company on 18th December 2007 (Sanctioned Scheme). The Sanctioned Scheme is presently under implementation.

FINANCIAL HIGHLIGHTS:

OPERATIONS

The Company’s Total Income for the year aggregated Rs.592.500 Millions (Previous year – Rs.608.500 Millions). The operations of the Company for the period resulted in a Loss after Tax of Rs.394.000 Millions (Previous year – Loss after Tax of Rs.133.000 Millions).

The Company commenced the financial year with an order backlog of about Rs.1150.000 Millions and since the commencement of the year, the Company received new orders with estimated aggregate value of about Rs.550.000 Millions. Thus, the total orders available for execution aggregated approx. Rs.1700.000 Millions.

During the year, 4 (four) projects with estimated aggregate value of Rs.900.000 Millions were planned for execution. These included projects at Cuddalore (Tamil Nadu), Jodhpur (Rajasthan), Dahej (Gujarat) and a project in UAE. The Clients who awarded these contracts to the Company have subsequently either suspended these projects indefinitely or terminated them and this adversely affected the Company’s execution plans for the year.

The projects execution activities at Haldia (West Bengal), Jamshedpur (Jharkhand), Kalinganagar (Orissa) and Uran (Maharashtra) were carried out through the year. The Company also carried out project execution activities in UAE. All these projects are scheduled for completion in the Financial Year 2013-14.

The Company’s Nashik Factory made a significant contribution during the year. The order that involved manufacture of pressure water filters is nearing its completion. The Management is making focussed efforts to further improve the factory’s operations to enhance the overall performance of the Company.

Uncertainties in the global economies and snail-paced growth of infrastructure industry remained the main areas of concern throughout the year. No major expansion plans or new projects were announced and as a result many companies suffered a major setback. Small and Medium companies, including your Company, had to carry out operations on tiny projects with constrained margins.

During this year of uncertainty, the Company focussed on closure of old projects at Bathinda (Punjab) and Barmer (Rajasthan) as well as overseas projects in Kuwait and UAE. Under the guidance of Tata Projects Limited (TPL), the Company is completely revamping/ restructuring its operations and has finalised a strategy and business plan to overcome the difficulties in operations. The Company is hopeful of reporting improved performance in the years to come.

Rehabilitation Scheme sanctioned by the Board for Industrial and Financial Reconstruction

As the Members are aware, the Board for Industrial and Financial Reconstruction (BIFR) had, vide its Order dated 18th December 2007, sanctioned a rehabilitation scheme (Sanctioned Scheme). While most of the provisions of the Sanctioned Scheme have been implemented, the Company, despite its strenuous efforts, could not achieve the desired objective of being a positive net worth company.

The shareholders may recollect that at the previous Annual General Meeting, the Chairman had informed the shareholders that the Company would approach the BIFR seeking continuity of the Sanctioned Scheme and extension to come out of the BIFR’s purview. Accordingly, the Company is making its application to the BIFR with certain proposals for additional reliefs and concessions from various authorities. The Company is hopeful that the BIFR and the concerned authorities may graciously consider these proposals and with their continued support, the Company may, in this phase of revival, be able to meet the commitment of being a positive net worth Company.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF-YEAR ENDED 30TH SEPTEMBER 2013

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)		Half-Year Ended ( Unaudited)
	30.09.2013	30.06.2013	30.09.2013
1. Income form operations
a) Net sales/ Income from operation (net of excise duty)	151.192	181.052	332.244
b) Other operating income	0.003	2.563	2.566
Total income from Operations(net)	151.195	183.615	334.810
2.Expenditure
a) Cost of material consumed	114.447	136.334	250.781
b) Purchases of stock in trade	0.000	0.000	0.000
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	13.213	8.060	21.273
d) Employees benefit expenses	21.051	19.145	40.196
e) Depreciation and amortization expenses	3.694	3.643	7.337
f) Other expenditure	9.765	9.003	18.768
Total expenses	162.170	176.185	338.355
3. Profit from operations before other income and financial costs	(10.975)	7.430	(3.545)
4. Other income	1.533	0.584	2.137
5. Profit from ordinary activities before finance costs	(9.422)	8.014	(1.408)
6. Finance costs	9.932	20.336	30.268
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	(19.354)	(12.322)	(31.676)
8. Exceptional item	0.000	(1.314)	(1.314)
9. Profit from ordinary activities before tax Expense:	(19.354)	(13.636)	(32.990)
10.Tax expenses	0.000	0.000	0.000
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	(19.354)	(13.636)	(32.990)
12.Extraordinary Items (net of tax expense)	0.00	0.000	0.000
13.Net Profit / (Loss) for the period (11 -12)	(19.354)	(13.636)	(32.990)
14.Paid-up equity share capital (Nominal value Re. 1/- per share)	36.920	36.920	36.920
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year
16.i) Earnings per share (before extraordinary items) of Re. 1/- each) (not annualised):
(a) Basic and diluted	(0.52)	(0.37)	(0.89)
ii) Earnings per share (after extraordinary items)
(a) Basic and diluted	(0.52)	(0.37)	(0.89)

Particulars	Quarter Ended ( Unaudited)		Half-Year Ended ( Unaudited)
	30.09.2013	30.06.2013	30.09.2013
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	9230000	9230000	9230000
- Percentage of shareholding	25.00%	25.00%	25.00%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-	-	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	-	-	-
Percentage of shares (as a % of total share capital of the company)	-	-	-
b) Non Encumbered
Number of shares	27690000	27690000	27690000
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%
	75.00%	75.00%	75.00%
Percentage of shares (as a % of total share capital of the company)
B. Investor Complaints
Pending at the beginning of the quarter	Nil
Receiving during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unreserved at the end of the quarter	Nil

Notes:

1. The above Unaudited Financial Results, reviewed by the Audit Committee, have been approved by the Board of Directors at its meeting held on 19 October 2013 and the same had been subjected to a Limited Review by the Statutory Auditors.

2. The Company is registered with the Board for Industrial and Financial Reconstruction (BIFR) as a sick company and BIFR has, vide its Order dated 18 December 2007, sanctioned the rehabilitation scheme ("the Sanctioned Scheme"). While most of the provisions of the Sanctioned Scheme have been implemented, the Company was not able to achieve positive Net worth as at 31 March, 2013 and accordingly, the Company has filed an application on 17 October 2013 to BIFR seeking an extension and modification of the Sanctioned Scheme, which is pending for approval. In view of the same, no provision has been made for interest payable to the holding company amounting to Rs.10.158 Millions for the current quarter. The Management is considering various alternatives for achieving profitability and positive cash flow. Based on the current order book position, operating results for the current quarter and considering continued support of the holding Company, barring unforeseen circumstances, the Management is confident about the Company's ability to continue as a going concern. The Auditors of the Company have put an "emphasis of matter" paragraph on the aforesaid matter in the Limited Review Report for the quarter ended 30 September 2013.

3. The Company operates in only one business segment i.e. executing EPC projects. Therefore, segment-wise reporting under Clause 41 of the Listing Agreement is not applicable

4. Exceptional item represents Loss on fixed assets discarded during half year ended 30 September 2013 and year ended 31 March 2013.

5. Deferred Tax asset is not recognised considering the reasonable / virtual uncertainty to earn future Taxable Income [ Rs.0.120 Millions in the corresponding half year ended 30 September 2012 and Previous year ended 31 March 2013 represents Deferred Tax ]

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10234228	28/10/2009	253,948,000.00	TATA PROJECTS LIMITED	"MITHONA TOWERS-1", 1-7-80 TO 87 OPP. WESLEY CO-ED, JR. COLLEGE, PRENDER GHAST ROAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA	A82499468
2	10154638	01/03/2012 *	1,100,000,000.00	CORPORATION BANK	Industrial Finance Branch, Bharat House,, Ground Floor, 104 B S Marg, Fort, Mumbai, Maharashtra - 400023, India	B34957498

*Date of modification charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Vehicles

· Computer

· Software

NEWS:

THE COMPANY HAS RECEIVED A WORK ORDER FROM BUFFER VESSELS OF RS.202.600 MILLIONS

Artson engineering limited, (the company) was incorporate as a private limited company on 18^th September 1978.

Since inception, the company was engaged in pioneering work in developing products and system in fuel handing and tankage construction activities in refineries, this led the company to become one of the foremost companies in India with specialization in construction in petroleum storage and handling systems.

In the year 1990, the company established its own manufacturing facility at Ambad (Nashik) to support its engineering procurement and construction (EPC) projects.

With a consistent record of dividend payment and two bonus issues earlier, the Company came out with its InitiiI Public Offering (IPO) of 1800000 equity shares of Rs.10 each at par in the year 1992. The IPO was over-subscribed 9.5 times and the shares of the Company were Wed on the Bombay, Delhi, Madras and Ahmedabad Stock Exchanges.

By the Year 1994, the Company was already engaged in the multidisciplinary engineering activities. The Company amounted its 'Rights Issue' in the year 1994 with ambitious expansion plans to take up EPC contracts in the core sectors of Oil and Gas, Power Generation and activities of Cryogenic Tanks Construction. The Rights Issue was of 4485000 equity shares of Rs.10 each at a premium of Rs.15 per share aggregating to Rs.112.100 Millions.

Over the years, the Company has developed its capabilities in the multi-disciplinary construction fields for the

Hydrocarbon process industry and has successfully executed, on turn-key basis, many prestigious construction

Contracts. The Company has thus emerged as one of the leading Design Engineering Procurement and Construction Companies in the Petroleum Storage and handling system.

During the span of three decades, the Company has successfully commissioned, on turn-key basis, several fuel storage and handling facility systems and emerged as one of the foremost companies in the country which specializes in such systems. The Company's expertise has gradually expanded beyond the Country and has been executing prestigious overseas contract as well.

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.61.18
UK Pound	1	Rs.100.14
Euro	1	Rs.83.82

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VNT

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.