MIRA INFORM REPORT

Report Date :

05.07.2013

IDENTIFICATION DETAILS

Name :	BAJAJ STEEL INDUSTRIES LIMITED
Registered Office :	Imambada Road, Nagpur – 440018, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.02.1961
Com. Reg. No.:	11-011936
Capital Investment / Paid-up Capital :	Rs.23.500 Millions
CIN No.: [Company Identification No.]	L27100MH1961PLC011936
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Machinery for Cotton Ginning and Pressing Decorting Machinery.
No. of Employees :	1300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in sales and profitability during 2013. However, general financial position seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A (Long Term Rating)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	August 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

Name :	Mr. M K Sharma
Designation :	President
Contact No.:	91-9325132305
Date :	03.07.2013

LOCATIONS

Registered Office / Factory 1 :	Imambada Road, Nagpur – 440018, Maharashtra, India
Tel. No.:	91-712-2720071 / 80
Mobile No.:	91-9325132305 (Mr. M K Sharma)
Fax No.:	91-712-2728050 / 2723068
E-Mail :	bsi@bajajngp.com mks@bajajngp.com cs@bajajngp.com
Website :	http://www.bajajngp.com
Area :	10 Acre
Location :	Owned
Factory 2 :	C-108, MIDC, Hingna Industrial Area, Nagpur - 440028, Maharashtra, India
Factory 3 :	D-5/2, MIDC, Hingna Industrial Area, Nagpur – 440028, Maharashtra, India
Factory 4 :	G 108, Butibori, MIDC Industrial, Nagpur - 441122, Maharashtra, India
Regional Office :	Godown No. 72, Sahajanand Estate, Co-operative Housing Society, Near Lalmulji Trasport, Sarkhej. Ahmedabad-332210, Gujarat, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Hargovind Bajaj
Designation :	Chairman
Name :	Mr. Rohit Bajaj
Designation :	Managing Director
Name :	Mr. Sunil Bajaj
Designation :	Executive Director
Name :	Mr. Vinod Kumar Bajaj
Designation :	Board of Directors (Promoter - Non-Executive Director)
Name :	Mr. Lachland Mutha
Designation :	Non-Executive Director
Name :	Mr. Kamal Kishore Kela
Designation :	Independent Director
Name :	Mr. Mohan Agarwal
Designation :	Independent Director
Name :	Mr. Alok Goenka
Designation :	Independent Director
Name :	Mr. Rajkumar Lohia
Designation :	Independent Director
Name :	Mr. Rajiv Ranka
Designation :	Independent Director
Name :	Mr. Deepak Batra
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Jadish Shirke
Designation :	Company Secretary
Name :	Mr. Manish Sharma
Designation :	Chief Financial Officer
Audit Committee of Board of Directors
Name :	Shri Deepak Batra
Designation :	Chairman
Name :	Shri Rajiv Ranka
Designation :	Member
Name :	Shri Alok Goenka
Designation :	Member
Remuneration Committee of Board of Directors
Name :	Shri Deepak Batra
Designation :	Chairman
Name :	Shri Rajiv Ranka
Designation :	Member
Name :	Shri Alok Goenka
Designation :	Member
Shareholders Grievance Committee
Designation :	Chairman
Name :	Shri Rajiv Ranka
Designation :	Member
Name :	Shri Alok Goenka
Designation :	Member
Name :	Shri Rohit Bajaj
Designation :	Member
Name :	Shri Sunil Bajaj
Designation :	Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	651650	27.73
Bodies Corporate	209000	8.89
Sub Total	860650	36.62
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	860650	36.62
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	400	0.02
Financial Institutions / Banks	100	0
Sub Total	500	0.02
(2) Non-Institutions
Bodies Corporate	501809	21.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	650667	27.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	124087	5.28
Any Others (Specify)	212287	9.03
Clearing Members	129165	5.5
Non Resident Indians	83122	3.54
Sub Total	1488850	63.36
Total Public shareholding (B)	1489350	63.38
Total (A)+(B)	2350000	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0
(1) Promoter and Promoter Group	0	0
(2) Public	0	0
Sub Total	0	0
Total (A)+(B)+(C)	2350000	0

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Machinery for Cotton Ginning and Pressing Decorting Machinery.

Products :

Item Code No.	Product Description
844519.10	Main Activity-Machinery for cotton Ginning and Pressing used for preparing textile fabrics.
320649.90	Subsidiary Activity-Plastic Master Batches based on Caco3

Exports :

Products :

• Cotton Ginning
• Pressing Machinery

Countries :

• Tanzania
• China
• Zimbabwe
• Africa
• Uganda
• USA
• Pakistan

Imports :

Products :

Raw Materials

Countries :

• Germany
• Taiwan
• China
• USA

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

GENERAL INFORMATION

Suppliers :

• Jindal Steels
• S R Steels

Customers :

End Uses

No. of Employees :

1300 (Approximately)

Bankers :

• Axis Bank Limited, Nagpur
• State Bank of India, Nagpur
• ICICI Bank Limited
• HDFC Bank Limited
• Karur Vysya Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
LONG -TERM BORROWINGS:
A) Term Loans from others:
SICOM Limited Secured by first charge on the entire fixed assets and movable assets, present and future, situated at Plot No. C-108, MIDC, Hingna, Nagpur and floating charge on all other assets of the Company and by personal guarantee of the Managing and Executive Director of the company. Terms of Repayment : Quarterly Installments of Rs. 5.500 Millions each and last 4 quarterly installments of Rs. 6.000 Millions each.	46.000	68.000
B) Vehicle Loans from :
a) ICICI Bank Limited	0.551	0.984
b) HDFC Bank Limited	3.384	5.158
c) Karur Vysya Bank Limited	4.292	6.094
d) AXIS Bank Limited	2.355	2.226
- Secured by hypothecation of vehicles financed by them Terms of Repayment : Rs. 7.928 Millions under 36 EMI Scheme Rs. 2.655 Millions under 60 EMI Scheme
Less: Current Maturity	(29.915)	(31.076)
SHORT-TERM BORROWINGS		51.386
Loan Repayable on Demand
(i) Working Capital Loans from :
a) State Bank of India Secured by first charge on Stocks and Book debts and second charge on the fixed assets of the company situated at Sausar and Imambada Road, Nagpur and by personal guarantee of the Managing, Executive and two other Directors and C.E.O. of Super pack Division of the company.	73.182	64.272
b) Karur Vysya Bank Limited Secured by first charge on current assets of Steel Division, collateral security by way of extension of first and exclusive charge on the entire fixed assets, present and future situated at plot No- G-108, Butibori, MIDC, Nagpur (Collateral Security pending documentation and Registration) and by personal guarantee of the Managing and Executive Director of the Company.	0.000	99.402
c) AXIS Bank Limited Secured by first charge on entire current assets of Steel Division of the Company, present and Future, collateral security by way of extension of exclusive charge on the moveable and immoveable fixed assets, present and future situated at plot No- G-108, Butibori, MIDC, Nagpur and by personal guarantee of the Managing and Executive Director of the Company.	118.257	0.000
(ii) Overdraft from :
a) HDFC Bank Limited	0.000	8.125
b) AXIS Bank Limited - Secured by pledge of certain Fixed Deposit Receipts	1.595	3.227
TOTAL	219.701	226.412

Banking Relations :	--
Financial Institution :	SICOM Limited, Mumbai
Auditors :
Name :	B. Chhawcharia and Company Chartered Accountant
Address :	602, Govind Estates, Plot No. 172, Shivaji Nagar, Nagpur, Maharashtra, India
Associates :	Biscuit Company Limited Bajaj Chemoplast (India) Limited Bajaj Trade Development Limited Bajaj Exports Private Limited Rohit Polytex Limited Prosperous Finance Services Limited Ampee Textiles Private Limited Twinstar Plasticoats Private Limited Bajaj Global Limited Ridhi Vinimay Private Limited Sidhi Vinimay Private Limited Vidarbha Tradelinks Private Limited Glycosic Merchants Private Limited Bajaj Marketing Services Rohit Machines and Fabricators Limited Bajaj Packaging Gangalaxmi Agrotech Limited Gangalaxmi Industries Limited Luk Technical Services Private Limited Luk Plastcon Limited Plast Master Batches Private Limited Luk Infrastructure Private Limited Enbee Trade and Finance Limited Tashi India Limited Luk Bedrocks Private Limited Nagpur Infotech Private Limited Bajaj Polymin Limited Luk Bricks Private Limited Bajaj Polyblends Private Limited Bajaj Superpack Limited Bajaj Gintech Private Limited Bajaj Plastics Private Limited Bajaj Cotgin Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2350000	Equity Shares	Rs.10/- each	Rs. 23.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	23.500	23.500
(b) Reserves & Surplus	551.624	478.404
(c) Money received against share warrants	0.000	9.900
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	575.124	511.804
(3) Non-Current Liabilities
(a) long-term borrowings	28.844	56.860
(b) Deferred tax liabilities (Net)	(5.258)	2.030
(c) Other long term liabilities	9.642	7.142
(d) long-term provisions	25.520	23.487
Total Non-current Liabilities (3)	58.748	89.519
(4) Current Liabilities
(a) Short term borrowings	456.843	441.674
(b) Advance from Customers	136.094	129.726
(c) Trade payables	314.330	345.031
(d) Other current liabilities	91.534	93.054
(e) Short-term provisions	8.194	5.462
Total Current Liabilities (4)	1006.995	1014.947
TOTAL	1640.867	1616.270
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	297.431	308.197
(ii) Intangible Assets	20.992	34.506
(iii) Capital work-in-progress	194.438	130.357
(b) Non-current Investments	2.784	2.784
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	6.208	8.742
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	521.853	484.586
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	502.821	614.159
(c) Trade receivables	299.302	236.343
(d) Cash and cash equivalents	220.517	185.625
(e) Short-term loans and advances	96.374	95.557
(f) Other current assets	0.000	0.000
Total Current Assets	1119.014	1131.684
TOTAL	1640.867	1616.270

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		22.000
2] Share Application Money		0.000
3] Reserves & Surplus		441.189
4] (Accumulated Losses)		0.000
NETWORTH		463.189
LOAN FUNDS
1] Secured Loans		237.906
2] Unsecured Loans		222.259
TOTAL BORROWING		460.165
DEFERRED TAX LIABILITIES		4.060
TOTAL		927.414
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		317.239
Capital work-in-progress		103.555
INVESTMENT		2.783
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	458.024
	Sundry Debtors	155.573
	Cash & Bank Balances	233.755
	Other Current Assets	0.000
	Loans & Advances	100.512
Total Current Assets		947.864
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	277.193
	Other Current Liabilities	147.019
	Provisions	19.815
Total Current Liabilities		444.027
Net Current Assets		503.837
MISCELLANEOUS EXPENSES		0.000
TOTAL		927.414

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3133.938	2042.003	2245.395
		Processing Charges	0.000	0.000	0.375
		Other Income	30.588	18.220	36.471
		TOTAL (A)	3164.526	2060.223	2282.241
Less	EXPENSES
		Cost of materials consumed	1968.716	1410.922	2078.275
		Purchases	139.791	12.015
		Manufacturing and Processing Charges	284.277	230.265
		Employee benefit expense	213.218	202.494
		Other Expenses	199.412	163.190
		Changes In Inventories	118.547	(100.819)
		TOTAL (B)	2923.961	1918.067	2078.275
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		240.565	142.156	203.966
Less	FINANCIAL EXPENSES (D)		69.274	58.974	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		171.291	83.182	203.966
Less/ Add	DEPRECIATION/ AMORTISATION (F)		65.459	57.295	51.392
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		105.832	25.887	152.574
Less	TAX (H)		34.318	21.310	50.131
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		71.514	4.577	102.443
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.013	35.899	18.587
Less	APPROPRIATIONS
		Provision for Proposed dividend	7.050	4.700	4.400
		Corporate Dividend Tax	1.144	0.763	0.731
		Transfer to General Reserve	70.000	10.000	80.000
	BALANCE CARRIED TO THE B/S		18.333	25.013	35.899
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	261.040	121.685	293.614
	TOTAL EARNINGS		261.040	121.685	293.614
	IMPORTS
		Capital Goods	18.159	34.511	6.298
		Raw Materials	378.562	365.344	320.971
	TOTAL IMPORTS		396.721	399.855	327.269
	Earnings / (Loss) Per Share (Rs.)		30.43	2.08	46.56

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	416.300	769.100	1056.000	610.900
Total Expenditure	432.100	697.900	943.200	633.900
PBIDT (Excl OI)	(15.800)	71.200	112.800	(23.000)
Other Income	5.500	6.200	3.300	18.700
Operating Profit	(10.300)	77.400	116.200	(4.300)
Interest	17.300	16.600	18.000	14.200
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	(27.500)	60.800	98.100	(18.600)
Depreciation	12.700	12.600	15.100	18.800
Profit Before Tax	(40.200)	48.200	83.000	(37.400)
Tax	0.000	2.600	26.900	(18.500)
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(40.200)	45.600	56.100	(18.900)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(40.200)	45.600	56.100	(18.900)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.26	0.22	4.49
Net Profit Margin (PBT/Sales)	(%)	3.38	1.27	6.79
Return on Total Assets (PBT/Total Assets}	(%)	7.33	1.75	12.06
Return on Investment (ROI) (PBT/Networth)		0.18	0.05	0.33
Debt Equity Ratio (Total Debt /Networth)		0.84	0.97	0.99
Current Ratio (Current Asset/Current Liability)		1.11	1.12	2.13

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
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	Yes
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	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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 31.03.2012	Rs. In Millions 31.03.2011
LONG -TERM BORROWINGS:
Fixed Deposits	2.177	5.473
SHORT-TERM BORROWINGS
From Related parties	263.809	266.649
TOTAL	265.986	272.122

WORKING AND FUTURE PROSPECTS

During the year, the gross turnover of the Company increased gradually from Rs 2060.200 Millions in 2010 -11 to Rs 3164.500 Millions in 2011 -2012 representing a growth of 53.60 % .The increase in turnover is attributable to the new developed products as well as to the better explorements to new markets The profit after tax has also been increased from Rs 4.600 Millions in 2010 – 11 to Rs 71.500 Millions in 2011- 12. The profitability of the Company has increased due to the increase in turnover which has resulted in better allocation of Fixed Expenses

The working of both the division of the Company is given as below:

STEEL DIVISION

The Steel Division is concentrating in its core business of manufacturing Cotton ginning and Pressing machineries which has a great potential to expand, considering the increasing cotton cultivation in India and abroad. The Company had successfully launched few new products like Cotton Delinting Machines and Decorticating Machines, Pre- fabricated Industrial Sheds etc.

PLASTIC DIVISION (SUPERPACK)

The sale / disposal of the Superpack Division is expected to complete at the earliest. However the performance of the unit has improved during the year achieving the gross turnover of Rs 1000.000 Millions.

Shri Vinod Kumar Bajaj and Shri Ashish Bajaj are looking at the Superpack Division of the Company. Looking at the valuable experience and background of Shri Ashish Bajaj, the Board of Directors vide circular resolution further re-appointed Shri Ashish Bajaj for period of One (1) year w.e.f. 20.03.2012, in compliance with Section 314(1B) of the Companies Act, 1956 read with Director's Relative (Office or Place of Profit), Rules, 2011, subject to the approval of members /shareholders at the ensuing annual general meeting of the Company.

Further, Shri Ashish Bajaj Chief Executive Officer of Superpack Division of the Company is solely responsible for the operations (including Day to Day operations), activities and all the compliances including statutory compliances of Superpack Division of the Company

MANAGEMENT DISCUSSION AND ANALYSIS

FORWARD LOOKING STATEMENTS

1. DISCLAIMER

These financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India. All statements that address expectations or projections about the future, including, but not limited to statements about the company's strategy for growth, product development, market position, expenditures and financial results are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will realized. The Company's actual results, performance or achievements could thus differ materially from those projected in any such forward – looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

INDUSTRY STRUCTURE AND DEVELOPMENT

Primarily, the Company is having two Divisions viz Steel Division and Superpack (Plastic) Division. Steel Division of the Company is having distinguished manufacturing facilities in India for Cotton Ginning and Pressing Plants located at Imambada Road and C-108, M.I.D.C Industrial Area, Hingna, Nagpur.

The Superpack Division of the Company is for manufacturing of Masterbatches. However, the sale / disposal of the Superpack Division is expected to complete at the earliest. Further, the Major thrust of the Management is on the operation of Steel Division of the Company which is its core business.

The strong vision and dedication of the promoters has put the Company as one of the biggest manufacturers of Cotton Ginning and Pressing Machineries with distinction of having only company in the world with capabilities for manufacturing Cotton Ginning Machines for all the three major cotton ginning technologies being used in the world and enjoying more than two – thirds of the market share in India while rapidly expanding wings in the other cotton growing countries of the world.

The Company has entered technical collaborations to manufacture the Cotton Processing Machines with following companies / institutes:

Sr. No	Name of Machines	Name of Collaborators
1.	Ginning and Pressing Machines	Central Institute for Research on Cotton Technology (CIRCOT), ICAR, Government of India Mumbai
2.	Humidification System	Samuel Jackson Inc. of USA

* During the Financial year 2011-12, the Company has took over the Business of Continental Eagle Corporation including keep all rights of Sales and marketing of Continental Eagle Corporation. Now, the Company will manufacture and sales all products of Continental Eagle Corp. on its own exclusively.

These collaborations have enabled the company to expand its goodwill and to tap new areas of business.

As the Company is in the phase of enhancing its business activities outside India and the Company is already receiving good response from US Market in view of enhancing its sales activities in US Market the company formed/ incorporated 100% subsidiary with the name and style as “BAJAJ CONEAGLE LLC”, A Limited Liability Company vide Name reservation certificate received from Secretary of State of Alabama on April 02, 2012

NEW PRODUCTS LINE

The Company is having distinguished manufacturing facilities in India for Cotton Ginning and Pressing Plants / Machineries. The facilities are equipped with state of art machines with latest technologies and managed by team of engineers. Moreover, the Company is in the process of expanding its business activities by way of expansion plans. Looking against the seasonal nature of Ginning Machines, the Company had successfully developed few new products like Cotton Seed Delinting Machines/ Decorticating Machines, Fire Diverter System, Pre-fabricated and Secondary Filter, Fibre Compacter, Bale Ties etc which would cater the market throughout the year.

Moreover, the Company is in the process of executing various new projects for wider product range, value additions and to make its product more competitive.

· Delinting and Decorticating Machines (Capacity ranging from 100-800 TPD)

· Continental Products based on Continental Eagle Corp, USA Technology

The Company has also proposed to develop Oil Mill Machineries (Capacity ranging from 100-300 TPD) and Power Equipments.

The above products are logical extension to the existing product lines.

For the above said expansion cum diversification, the Company has already acquired the land admn 37000 Sq Mtrs in Butibori Industrial Area, Nagpur. The Company has the distinct logistics advantages being a central place well connected by rail, road and air. Inland Container Depot and proposed International Cargo Hub is also very nearby.

Moreover, the Company has introduced Cotton Seed Dispensing System Machine which evenly and gently open the seed cotton and allows consistent and uniform feeding of Seed Cotton hence resulting in the higher productivity.

EXPORT POTENTIAL OF GINNING MACHINES

Like Indian economy, agriculture always remains the base of most of the developing countries. The company has successfully exported its cotton processing machines to Peru, Tajikistan, Srilanka, Myanmar, Bangladesh, Egypt, Pakistan, Madagascar, Nigeria, Zimbabwe, Zambia, Uganda, Tanzania, Malawi, Ethiopia etc.

The demand for spare parts for ginning machines and allied equipments are increasing manifold. In order to meet this demand, the company has opened a depot at Ahmadabad and planning to open more depots in other cotton growing areas in India.

SEGMENT WISE – PRODUCT WISE PERFORMANCE

The Steel Division of the Company consists of manufacturing of Cotton Ginning and Pressing machineries and its spare parts and accessories.

During the year, the Steel Division has achieved a Turnover of Rs 2267.000 Millions and Superpack Division has achieved a turnover of Rs 1010.100 Millions. The turnover of Cotton Division in domestic sale and export of Cotton Bales during the year was Rs 132.200 Millions

TRADE REFERENCES

• Jindal Steels
• S R Steels

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Office Equipments
• Furniture and Fixtures
• Vehicles
• Patents

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2013

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Year Ended
		31.03.2013 (Audited)	31.12.2012 (Unaudited)	31.03.2013 (Audited)
1.	Income from Operations
	Net Sales	590.974	1047.962	2816.408
	Other Operating Income	19.894	8.072	35.919
	Net Sales/Income from Operations	610.868	1056.034	2852.327
2.	Expenditure
	Cost of Material Consumed	352.046	717.507	1938.275
	Purchase of Stock In Trade	0.118	0.000	0.118
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	(14.354)	25.861	5.210
	Employee Benefits Expenses	71.043	63.997	230.363
	Depreciation and Amortization Expenses	18.819	15.132	59.178
	Other Expenses	225.019	135.822	533.045
	f) Total	652.691	958.319	2766.189
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	(41.823)	97.715	86.138
4.	Other Income	18.667	3.334	33.654
5.	Profit Before Interest and Exceptional Items (3+4)	(23.157)	101.049	119.791
6.	Interest	14.232	18.041	66.129
7.	Profit After Interest but before Exceptional Items (5-6)	(37.388)	83.009	53.663
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	(37.388)	83.009	53.663
10.	Tax Expense	(18.483)	26.932	11.059
11.	Net Profit from Ordinary Activities after Tax (9-10)	(18.905)	56.076	42.604
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	(18.905)	56.076	42.604
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	23.500	23.500	23.500
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(8.04)	23.86	18.13
	b) Basic and diluted EPS after extraordinary items	(8.04)	23.86	18.13
17.	Public Shareholding
	-Number of Shares	1489350	1489350	1489350
	- Percentage of Shareholding	63.37%	63.37%	63.37%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	860650	860650	860650
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00%	100.00%	100.00%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	36.62%	36.62%	36.62%

Particulars	3 Months ended on March 31, 2013
Pending at the beginning of the quarter	Nil
Received during the quarter	01
Disposed of during the quarter	01
Remaining unresolved at the end of the quarter	Nil

NOTES

1. The above financial results have been taken on record by the Board of Directors at their Meeting held on 30 May 2013 after reviewed by the Audit Committee.

2. There were no investor complains outstanding at the beginning of the quarter. All complains received during the quarter were resolved.

3. Previous year / quarter figures are regrouped / restarted where necessary.

4. The classification / disclosure of items in the financial results shall be in accordance with the revised schedule VI of the companies Act, 1956.

5. The board of director have recommended 30% dividend i.e. Rs.3/- per share on 235000 equity shares of Rs.10 each for the year ended 31.03.2013, subject to the approval of members at forthcoming AGM.

6. Statement of Assets and Liabilities is as follows

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

PARTICULARS	31.03.2013 AUDITED
Equity and liabilities
Shareholders' fund
Share capital	23.500
Reserve & surplus	586.034
Sub-total - Shareholders' funds	609.534
Non - current liabilities
Long term borrowings	16.153
Deferred tax liability (net)	(11.119)
Other long term liabilities	213.259
Long term provisions	31.569
Sub-total - Non-current liabilities	249.863
Current liabilities
Short term borrowings	473.350
Trade payables	418.460
Other current liabilities	143.956
Short term provisions	8.194
Sub-total - Current liabilities	1043.960
Total - Equity & Liabilities	1903.357
Assets
Non-current assets
Fixed assets	572.156
Non-current investment	38.405
Long term loans & advances	3.652
Sub-total - Non-current Assets	614.213
Current assets
Inventories	521.742
Trade receivables	400.976
Cash & bank balances	225.078
Short term loans & advances	141.348
Sub-total - Current Assets	1289.144
Total – Assets	1903.357

QUARTERLY REPORTING OF SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED, UNDER CLAUSE 41 OF THE LISTING AGREEMENT

(Rs. In Millions)

Sl. No.	Particulars	Quarter Ended		Nine Months Ended
		31.03.2013	31.12.2012	31.03.2013
		(Audited)	(Unaudited)	(Audited)
1	Segment Revenue
	Steel and Related Products	342.433	795.156	1847.498
	Plastic and Related Products	268.435	260.878	1004.829
	Total	610.868	1056.034	2852.327
	Less : Inter Segment Revenue	--	--	--
	Net Sales / Income from Operation	610.868	1056.034	2852.327
2	Segment Results
	Steel and Related Products	(43.238)	86.533	59.265
	Plastic and Related Products	20.080	14.516	60.526
	Total	(23.158)	101.049	119.791
	Less :Finance Cost	14.231	18.041	66.129
	Total Profit Before Tax	(37.389)	83.009	53.662
3	Capital Employed
	Steel and Related Products	562.656	608.723	562.656
	Plastic and Related Products	22.234	10.143	22.234
	Others	13.525	4.191	13.525
	Total	598.415	623.057	598.415

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. 60.09
UK Pound	1	Rs. 91.57
Euro	1	Rs. 78.07

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.