MIRA INFORM REPORT

Report Date :

09.07.2013

IDENTIFICATION DETAILS

Name :	PENNAR INDUSTRIES LIMITED (w.e.f. 30.09.1998)
Formerly Known As :	PENNAR STEELS LIMITED
Registered Office :	Floor No. 1/3, DHFLVC Silicon Towers, Kondapur, Hyderabad – 500 084, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.08.1975
Com. Reg. No.:	01-001919
Capital Investment / Paid-up Capital :	Rs. 697.900 Millions
CIN No.: [Company Identification No.]	L27109AP1975PLC001919
TAN No.: [Tax Deduction & Collection Account No.]	HYDP00081E
PAN No.: [Permanent Account No.]	AABC93074H
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of These Engineering Products Requires Extensive Engineering Expertise, Supported By a Large Repository of Dies and Tools.
No. of Employees :	Not Available

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 12000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having fine track record. There appears some dip in the profitability of the company. However, general financial of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company 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.

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	CARE
Rating	Long terms Bank facilities : A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	February 2013.

Rating Agency Name	CARE
Rating	Short terms Bank facilities : A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	February 2013.

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 DENIED BY

Management Non-co-operative.

LOCATIONS

Registered Office :	Floor No. 1/3, DHFLVC Silicon Towers, Kondapur, Hyderabad – 500 084, Andhra Pradesh, India
Tel. No.:	91-40-23117043 / 45
Fax No.:	91-40-23117041
E-Mail :	psteel@hdl.vsnl.net.in contact@pennarindia.com pilhyd@bsnl.in pilhyd@sancharnet.in corporatecommunications@pennarindia.com
Website :	www.pennarindia.com
Corporate Office / Factory 1:	Patancheru Unit IDA, Patancheru - 502 319, Medak (Dist), Andhra Pradesh, India
Tel. No.:	91-8455-242184 To 242193
Fax No.:	91-8455-242424 / 242161
E-Mail :	contact@pennarindia.com pilhyd@bsnl.in
Area:	43 Acres
Factory 2 :	Isnapur Unit Isnapur Village - 502 307, Medak (Dist.), Andhra Pradesh, India
Tel. No.:	91-8455-226615 / 17
Fax No.:	91-8455-226412
Area:	26 Acres
Factory 3 :	Tarapur Unit Pressmetal (Pennar), MIDC, Tarapur, Maharashtra, India
Tel. No.:	91-2525-272517 / 609 / 429
Fax No.:	91-2525 272536
E-Mail :	pennar@sancharnet.in
Area:	5 Acres
Factory 4 :	Chennai Unit Kannigaipair Village, Periyapalem Main Road, Tiruvellore Dist. Tamil Nadu-601 102, India
Tel. No.:	91-44-27629042 / 27601009 / 27601010
Fax No.:	91-44-2762 9298
E-Mail :	pilchn@pennarindia.com
Area:	5 Acres
Factory 5 :	Hosur Unit 43, SIDCO Industrial Estate, II Phase, Hosur, Tamil Nadu, India
Branches:	Located At: · Bangalore · Chennai · Coimbatore · Faridabad · Hosur · Hyderabad · Indore · Kolkotta · Mumbai · Pune · Delhi

DIRECTORS

As on: 31.03.2012

Name :	Mr. Nrupender Rao
Designation :	Executive Chairman
Date of Birth/Age :	67 Years
Qualification :	B. Tech, MS
Experience :	44 Years
Date of Appointment :	01.09.1998
Name :	Mr. Ch Anantha Reddy
Designation :	Managing Director
Date of Birth/Age :	65 Years
Qualification :	B.E (Metallurgical), P.G.D.M.M
Experience :	41 Years
Date of Appointment :	01.01.1986
Name :	Mr. Ravi Chachra
Designation :	Non Executive Director
Name :	Dr. G Vivekanand
Designation :	Independent Non Executive Director
Name :	Mr. C Parthasarathy
Designation :	Independent Non Executive Director
Name :	Mr. B Kamalakar Rao
Designation :	Independent Non Executive Director, Additional Director
Name :	Mr. A Krishna Rao
Designation :	Independent Non Executive Director
Name :	Mr. Manish Sabharwal
Designation :	Director
Name :	Mr. C Rangamani
Designation :	Independent Non Executive Director
Name :	Mr. Aditya N Rao
Designation :	Executive Director - Projects
Date of Birth/Age :	30 Years
Qualification :	B.S., M.Eng
Experience :	7 Years
Date of Appointment :	02.05.2007
Name :	Mr. J Ramu Rao
Designation :	Director
Name :	Mr. Vishal Sood
Designation :	Additional Director

KEY EXECUTIVES

Name :	Mr. R. Ravi
Designation :	Vice President, Finance and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2012

Category of Shareholder	No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	28047229	22.99
Bodies Corporate	20953811	17.17
Sub Total	49001040	40.16
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	49001040	40.16
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	950	0.00
Financial Institutions / Banks	816344	0.67
Foreign Institutional Investors	26804684	21.97
Any Others (Specify)	8711854	7.14
Foreign Funds	8711854	7.14
Sub Total	36333832	29.78
(2) Non-Institutions
Bodies Corporate	13264262	10.87
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	11179585	9.16
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	11008106	9.02
Any Others (Specify)	1237175	1.01
Non Resident Indians	1214083	0.99
Trusts	5955	0.00
Clearing Members	17137	0.01
Sub Total	36689128	30.07
Total Public shareholding (B)	73022960	59.84
Total (A)+(B)	122024000	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)	122024000	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of These Engineering Products Requires Extensive Engineering Expertise, Supported By a Large Repository of Dies and Tools.
Products :	· Cold Rolled Formed Profiles · Pre-Engineered Building   Systems · Engineered Components · Electro Static Precipitators · Metal Crash Barriers · Cold Rolled Steel Strips · ERW Tubes

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cold Rolled Steel Strips	(Tonnes per annum)	Delicensed	110000	127174
Cold Formed Metal Profiles and Pressed Components	(Tonnes per annum)	Delicensed	113000	98623

GENERAL INFORMATION

Customers:

• Larsen and Toubro
• Shpoorji Pallonji and Company Limitred
• NCC
• ABB
• BHEL
• TVS
• Wabco
• Emerson
• Metso Minerals

No. of Employees :

Not Available

Bankers :

• State Bank of India
• Axis Bank Limited
• State Bank of Patiala

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
From Banks Axis Bank Limited	131.300	11.300
From Others I F C I	2.100	10.600
Cash Credit from Banks	0	0
State Bank of India	491.600	560.100
Axis Bank Limited	187.400	223.800
State Bank of Patiala	102.400	96.700
Total	914.800	902.500
During the year company has taken a term loan from Axis Bank amounting to Rs.150.000 Millions for funding the CDW and Tubes project. The loan is repayable in 16 Quarterly instalments starting from December 2012. The loan carries the interest rate of 13.50% p.a. Term loan from IFCI is payable in 5 Quarterly instalments last being June 2013 and carries the interest rate of 13.00% p.a. Term Loans by Axis Bank and IFCI Limited are secured by first charge on all immovable properties by deposit of title deeds and second charge on all current assets both present and future and guaranteed by a director of a company in his personal capacity. Sales Tax deferment availed till the current account period is due for repayment after 12 months from balance sheet date as under: Year of Repayment Rs. in Millions 2013 - 14 2.700 2018 - 19 25.800 2019 - 20 37.500 2020 - 21 39.300 2021 - 22 43.100 2022 - 23 29.800 2023 - 24 33.500 2024 - 25 21.500 Total 233.100 Working capital facilities sanctioned by State Bank of India, Axis Bank and State Bank of Patiala are secured by first charge on all current assets both present and future. These are further secured by way of second charge on the immovable properties of the company and also guaranteed by a director of the company in his personal capacity. Average rate of interest is 12.15% p.a.

Banking Relations :	--
Auditors :
Name :	Rambabu and Company Chartered Accountants
Address :	31, Pancom Chambers, 6-3-1090/1/A, Rajbhavan Road, Somajiguda - 500 082, Hyderabad, India
PAN No.:
Subsidiaries Company :	Pennar Engineered Building Systems Limited
Fellow Subsidiary Company :	Pennar Building Systems Private Limited (Subsidiary of Pennar Engineered Building Systems Limited)
Significant Influence :	Pennar Enviro Limited Saven Technologies Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.5/- each	Rs.750.000 millions
500000	Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.50.000 millions
40000000	Cumulative Redeemable Preference Shares	Rs.5/- each	Rs.200.000 millions
	Total		Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
122024000	Equity Shares	Rs.5/- each	Rs.610.100 Millions
17553299	Cumulative Redeemable Preference Shares	Rs.5/- each	Rs.87.800 Millions
	Total		Rs.697.900 Millions

All Equity Shares issued by the company carry equal voting and participatory rights

44,53,479 shares out of the issued, subscribed and paid up capital were bought back and extinguished in the last five years

The details of share holders holding more than 5% shares

Name of the share holder	No of Shares	%held
My Home Constructions Private Limited	11,573,375	9.5
Saif Advisors Mauritius A/C Saif India IV FII Holdings Limited	9,442,728	7.7
Eight Capital Master Fund Limited	8,711,854	7.1
Copthall Mauritius Investment Limited	6,490,148	5.3
Palguna Consultants Private Limited	8,319,457	6.8
Thapati Trading Private Limited	6,666,737	5.5
Vinod Real Estates Private Limited	--	--

The reconciliation of the no of shares outstanding is set out below:

Particulars	As at 31.03.2012
Equity Shares at the beginning of the year	122,024,000
Equity Shares at the end of the year	122,024,000

“1,66,49,119 number of Cumulative Redeemable Preference Shares of Rs.5/- each fully paid up and carrying 0.01% rate of interest are redeemable at par in three equal annual instalments of Rs.1.66, Rs.1.67 and Rs.1.67 per share respectively commencing from the year 2013 – 14 and ending in the year 2015-16.“

9,04,180 number of Cumulative Redeemable Preference Shares of Rs. 5/- each issued to IFCI on conversion of Funded Interest Term Loans and carrying interest rate of 0.01% are redeemable at par in 10 quarterly instalments from 01.10.2013 to 01.01.2016

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	697.900	697.900
(b) Reserves & Surplus	2323.100	1947.600
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3021.000	2645.500
(3) Non-Current Liabilities
(a) long-term borrowings	366.500	262.700
(b) Deferred tax liabilities (Net)	121.800	98.500
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	8.600	9.100
Total Non-current Liabilities (3)	496.900	370.300
(4) Current Liabilities
(a) Short term borrowings	781.400	880.600
(b) Trade payables	660.800	340.800
(c) Other current liabilities	170.500	262.000
(d) Short-term provisions	141.800	106.300
Total Current Liabilities (4)	1754.500	1589.700
TOTAL	5272.400	4605.500
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1969.900	1547.600
(ii) Intangible Assets	16.400	10.100
(iii) Capital work-in-progress	1.000	65.700
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	185.000	185.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	27.500	9.700
Total Non-Current Assets	2199.800	1818.100
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1181.900	1038.900
(c) Trade receivables	1672.600	1485.000
(d) Cash and cash equivalents	100.200	114.500
(e) Short-term loans and advances	57.900	164.000
(f) Other current assets	60.000	(15.000)
Total Current Assets	3072.600	2787.400
TOTAL	5272.400	4605.500

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		697.886
2] Share Application Money		0.000
3] Reserves & Surplus		1455.496
4] (Accumulated Losses)		0.000
NETWORTH		2153.382
LOAN FUNDS
1] Secured Loans		1256.886
2] Unsecured Loans		232.921
TOTAL BORROWING		1489.807
DEFERRED TAX LIABILITIES		40.674
TOTAL		3683.863
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1403.605
Capital work-in-progress		86.298
INVESTMENT		185.027
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1180.612
	Sundry Debtors	1166.366
	Cash & Bank Balances	109.492
	Other Current Assets	0.000
	Other Non Current Assets	0.000
	Loans & Advances	434.118
Total Current Assets		2890.588
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	351.344
	Other Current Liabilities	106.624
	Provisions	428.375
Total Current Liabilities		886.343
Net Current Assets		2004.245
MISCELLANEOUS EXPENSES		4.688
TOTAL		3683.863

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	10241.000	10720.900	7979.603
		Other Income	10.300	10.700	4.172
		TOTAL (A)	10251.300	10731.600	7983.775
Less	EXPENSES
		Raw Material Consumed	7631.700	7762.700
		Change in Inventories	(139.200)	105.000
		Manufacturing Expenses	812.300	716.100	6889.417
		Employee Benefits Expense	385.200	319.500
		Other Expenses	439.500	484.800
		TOTAL (B)	9129.500	9388.100	6889.417
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1121.800	1343.500	1094.358
Less	FINANCIAL EXPENSES (D)		129.200	105.100	113.711
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		992.600	1238.400	980.647
Less/ Add	DEPRECIATION/ AMORTISATION (F)		141.700	111.600	123.905
	PROFIT BEFORE TAX (E-F) (G)		850.900	1126.800	856.742
Less	TAX (H)		308.300	432.300	356.040
	PROFIT AFTER TAX (G-H) (I)		542.600	694.600	500.702
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		896.570	449.070	200.368
Less	APPROPRIATIONS
		Dividend	122.000	152.500	153.200
		Corporate tax on proposed dividend	19.800	24.600	26.000
		Transfer to General Reserve	41.000	0.000	50.500
		Transfer to Capital Redemption Reserve	0.000	70.000	22.300
	BALANCE CARRIED TO THE B/S		1256.370	896.570	449.070
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	3.600	3.100	8.510
	TOTAL EARNINGS		3.600	3.100	8.510
	Earnings Per Share (Rs.)		4.40	5.70	3.37

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter	31.12.2012 3^rd Quarter	31.03.2013 4^th Quarter
Audited / UnAudited	UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	2187.500	1978.700	2010.400	2304.000
Total Expenditure	1982.200	1774.800	1805.100	2131.200
PBIDT (Excl OI)	205.300	203.900	205.300	172.800
Other Income	0.800	0.700	3.100	4.100
Operating Profit	206.100	204.600	208.400	176.900
Interest	30.800	46.900	46.000	52.200
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	175.300	157.700	162.400	124.700
Depreciation	37.000	37.400	36.800	38.000
Profit Before Tax	138.300	120.300	125.600	86.700
Tax	52.600	32.800	40.400	33.700
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	85.700	87.500	85.200	53.000
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	85.700	87.500	85.200	53.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.29	6.47	6.27
Net Profit Margin (PBT/Sales)	(%)	8.31	10.51	10.74
Return on Total Assets (PBT/Total Assets}	(%)	16.73	25.87	19.95
Return on Investment (ROI) (PBT/Networth)		0.28	0.43	0.40
Debt Equity Ratio (Total Debt/Networth)		0.38	0.43	0.69
Current Ratio (Current Asset/Current Liability)		1.75	1.75	3.26

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	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
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	Yes

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Sales Tax Deferment Loan	233.100	240.800
Total	233.100	240.800

LITIGATION DETAILS

CASE STATUS INFORMATION SYSTEM

PETITIONER	RESPONDENT
THE COMMISSIONER OF CUSTOMS, HYDERABAD	VS M/S PENNAR INDUSTRIES LIMITED, MEDAK DISTRICT
PET. ADV. : RAJASHEKAR REDDY (SR. SC FOR CB EXCISE)	RESP. ADV: GUNARANJAN
SUBJECT : CENTRAL EXCISE APPEAL	DISTRICT : HYDERABAD

FILING DATE: 15.07.2008	POSTING STAGE : FOR AMALGAMATION
REG. DATE : 28.10.2011	LISTING DATE : 08.11.2011	STATUS : ADMIT
HON’BLEJUDGE(S):	V. V. S. RAO	SANJAY KUMAR

PERFORMANCE

Pennar continues to strengthen its product offerings and introduced several new product lines. For FY2012, the Company reported annual sales revenue of Rs.11620.000 Millions compared with Rs. 12150.000 Millions recorded in FY2011. The Company recorded an operating profit (PBIDT) of Rs.1110.000 Millions compared with Rs. 1330.000 Millions in the previous year and a net profit of Rs.540.000 Millions compared with Rs.690.000 Millions last year.

During the year, the Company continued its focus on transforming itself into an engineering Company by increasing the sale of value added products coupled with diversification of offerings. The Company introduced several new product lines including CDW/ERW tubes, sheet pilings and solar structurals. The expansion of manufacturing facilities at its Isnapur and Tarapur plants for value-added products also contributed to strong revenue growth. The expansion added new production capacity for CDW tubes and increased capacities for precision tubes for automobiles and fabrication facilities.

PENNAR ENGINEERED BUILDING SYSTEMS LIMITED (PEBS)

The Company’s subsidiary, Pennar Engineered Building Systems Limited (PEBS), one of the leading providers of pre engineering building solutions in India, recorded annual sales of Rs.2790.000 Millions representing a 68.3% growth compared with last year. PEBS recorded an operating profit (PBIDT) of Rs.293.000 Millions and a net profit of Rs.104.000 Millions, representing a 58.4% and 60.2% growth, respectively as compared to last year. PEBS continued to build a strong order book including significant repeat orders from existing customers which demonstrates the trust that the Company has built in the short period of time. As at March 31, 2012, PEBS had an order book of Rs. 2150.000 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

· THE GLOBAL ECONOMY

Global economic growth remained under pressure as developed nations were unable to generate any sustained momentum. The UK and the Euro Zone (except Germany) have been under recessionary situation, with many of the highly indebted countries being pressured by intensifying fiscal measures and sharply increasing unemployment rate, particularly for young workers. The disruptions to international trade and bank credit caused by the decline in European demand and the consolidation of many of its financial institutions are now impacting the global economy.

The second bailout of Greece and the steps taken by the European Central Bank has helped in managing a downturn. Though, United States has continued to grow at decent pace but the market remains cautious as the signs of trouble have not faded completely. Increase in the employment level in USA has helped to re-gain the confidence of consumers and spending levels, also the increased competitiveness has helped in reviving the industrial output. Despite, recent improvement in hiring levels and declined savings, concerns over the sustainability of this improved performance still prevails.

Developing economies were not able to capitalize on their earlier momentum due to reversal of earlier fiscal stimulus. They have faced an increased pressure due to reduced credit and inflation. The situation was further worsened due to euro zone crisis that resulted in lower trade flows. The slowdown also indicates industry and labour market adjustments and efforts taken to improve the economic efficiencies through various reforms have not yielded the desired results.

Nevertheless, the larger economies have started showing some improvement in the growth, which provides some comfort. The governments of different countries seem much focused and are taking steps to divert the growth towards domestic activities. Strong homebuilding activity in China and infrastructure upgrades in Brazil is expected to result in a boost to job markets and has helped in increasing the consumer spending. Countries, like Brazil and India, have begun to lower interest rates with declining inflation pressures.

The Global real GDP growth is forecasted to decline to about 3.5% in 2012, from about 4.0% in 2011, and to return to 4% in 2013. In the developed economies, growth is projected around 1.5% in 2012 and 2.0% in 2013, driven by lack of confidence, fiscal consolidation, and due to the prevailing stretched financial conditions, Euro area GDP is forecasted to contract in 2012 by approximately 0.25%, after expanding by about 1.5% in 2011. Expansion in the emerging and developing economies is projected to remain at about 5.5 to 6.0% through 2013.

· INDIAN ECONOMY

Currently, India is facing a very challenging economic scenario and the fiscal policy is primarily being driven by inflation. Prevailing volatility in the forex market and depreciation of rupee poses a challenge for the policy formulation. India’s GDP growth is estimated to be 6.5% for FY2012, lower than the 8.4% growth in FY2011 and 10% in FY2010. GDP is expected to grow at ~7.0% in FY2013 as compared to 6.5% in the previous fiscal year. According to CRISIL, interest rate cuts, without supportive reform measures, would not be sufficient to raise growth beyond 7.0%. This forecast assumes a mild recession in the Euro Zone in 2012 and assumes that there is no significant progress on domestic policy reforms. The services sector which is currently growing at 8.7% will remain the key driver of growth. Industrial growth rate is expected to be 5.6% which will be relatively higher than the previous year due to RBI’s supportive monetary stance. Assuming a normal monsoon, the agriculture sector is expected to grow by 3.0%.

In FY2012, Index of Industrial Production (IIP) registered a growth of 2.8% compared to 8.2% in FY2011. Except Electricity which grew by 8.2%, the remaining two sectors viz. – Mining and Manufacturing remained under pressure at (2.0) % and 2.9% y-o-y, respectively in FY2012.

In FY2013, WPI based inflation is expected to be ~6.5%. This assumes the momentum in food inflation and the impact of the impending pass-through of global oil prices into retail fuel prices. The increases in the indirect and services tax rates in FY2013 budget are likely to add to the inflationary pressures

OPERATIONAL PERFORMANCE

During FY2012, the Company achieved an increase in sales volume and revenues. This increase in sales was achieved due to the increase in production volumes and improved product mix with focus on value added products: pre engineered buildings, CDW/ERW tubes, sheet piling and solar structurals. Due to aggressive marketing efforts, Pennar increased the sales volume from 183,028 metric tonnes (MT) in FY2011 to 190,231 MT in FY2012, an increase of 4%. This helped it to achieve a sales turnover of Rs.14380.000 Millions against Rs.13700.000 Millions in the previous year.

· ENGINEERING PRODUCTS

PERFORMANCE

During the period, Engineering Products segment recorded a revenue growth of 15.8% and volume growth of 7.2%. Both the volume and value growths were primarily driven by increased contribution from higher value added products including engineering components and tubes.

OUTLOOK

Performance of the Engineering Products segment will be driven by growth in the ERW and CDW tubes and the components division. The Company has incurred significant capex for developing the ERW and CDW manufacturing capacities and expects to capitalize on increasing demand for the products of this segment. Increased capacity utilizations and the ramp up of capacities will result in the growth of this segment.

· COLD ROLLED STEEL STRIPS (CRSS)

PERFORMANCE

During the period, CRSS recorded a revenue declined by 6.5% as the Company continues to shift capacity utilization to higher value added products. Volume in the segment declined by 14.3%. However, the volume decline was offset to some extent by higher price realization.

OUTLOOK

The Company’s commodity product sales have been steady for the past few years and will continue to be so. Management of the Company has taken a strategic decision to enhance process efficiencies and implement cost saving measures to increase profitability while maintaining the segment’s sales numbers.

· HEAVY ENGINEERING

PERFORMANCE

During the period, performance of the Heavy Engineering segment which consisted of primarily railways was impacted by slower off-take from the railway industry during the second half of the fiscal year.

OUTLOOK

The slowdown in the railways sector and subsequent drop in orders for wagon and coach components is expected to make this a tough year for heavy engineering. They remain cautious on their approach and strategy for this segment.

· INFRASTRUCTURE

PERFORMANCE

During the period, Infrastructure segment recorded a revenue growth of 6.6%. This growth was primarily driven by improved sales mix. Volumes from fabrication for infrastructure declined during the second half of the year, which was offset by significant volumes from solar and sheet piles. During the year under review, the Company expanded the total capacity of the segment to 62,100 MT. A few of the new customers included are Tata BP Solar, Moser Baer, Schneider Electric, Indu Projects and Lanco Solar.

OUTLOOK

The addition of sheet piling and solar business divisions is expected to contribute significantly to Infrastructure segment’s performance. They expect this segment to perform above their expectations in the coming year.

· PRE-ENGINEERED BUILDING SYSTEMS (PEBS)

PERFORMANCE

During the period, PEBS segment recorded a robust revenue growth of 68.3%. This growth was primarily driven by increased capacity utilization levels and significant new orders. This segment executed 78 new projects during the year. A significant portion of the orders executed were repeat orders from same customer. The segment continued to bag new orders at the same time building stronger relationship with existing customers. The Company is in the process of increasing the capacity by 30,000 MT to take the total capacity to 90,000 MT by end 2012. New customers include ABB, Bosch, Dr Reddy’s Laboratories, Godrej, ITC, L AND T, Reliance Retail Distribution Centers, Schneider Electric and Ultratech. Repeat orders included orders from Indian Logistics, Ultratech and L AND T.

OUTLOOK

PEBS segment is expected to continue to grow strongly this year. Strengthening order book and expanded capacities will help the Company achieve higher topline and bottomline growth this year. Margin expansion is also a priority going forward.

· OUTLOOK

Over the past year, moderating economic growth and a high interest rate environment have resulted in uncertainty in the Indian economy. This volatility is expected to impact demand for steel, engineering and infrastructure products in the near term. However, Pennar expects to continue to report steady annual growth and profitability as it continuously tries to innovate to take advantage of new business opportunities. Management remains cautious in its approach while making decisions, at the same time, optimistic about the medium term domestic growth story.

PEBS Pennar has state-of-the-art technology to make complex structures and provide special leak proof standing seam roofing sheets for its pre-engineered building products in technical association with NCI, USA. This positions the Company as one of the preferred vendors in the industry. The new client wins during the year along with repeat orders from existing clients clearly demonstrates the trust that the Company has built in the short period of time.

The increased capacity at the PEBS plant enables the Company to capitalize on the attractive growth dynamics of the Indian pre-engineered buildings sector. Going forward, Pennar expects this segment to make increasing contributions to growth and profitability.

Pennar continues to focus on pre engineered buildings, profiles, cold rolling, engineering components and with special thrust on precision tubes and sheet piles. The recent capacity additions within various facilities will enable the Company to capitalize on the growth in heavy vehicles, two wheelers and infrastructure sectors.

Contingent Liabilities:

Rs. In Millions

Particulars	31.03.2012	31.03.2011
Bank Guarantees given by banks	37.900	29.200
Corporate Guarantee given for loans taken by subsidiary	1381.300	895.200
Claims by Customs AND Sales Tax	21.000	43.700
Estimated amount of contracts remaining to be executed on capital account and not provided for (net)	36.000	310.500
LC/Bills Discounted	359.000	553.100

Corporate guarantee to the tune of Rs.895.200 Millions and Rs. 486.100 Millions has been given to State Bank of India and Axis Bank Limited for Term Loans and Working capital loans taken by its subsidiary M/s Pennar Engineered Building Systems Limited (PEBSL). The company also provided a collateral security, a lien on fixed deposit of Rs.200.000 Millions and pledge of shares of Pennar Engineered Building Systems Limited to the extent of 61,50,000 shares amounting to Rs.61.500 Millions.

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30 JUNE 2012

Rs. In Millions

S. No		Particulars	30.06.2012 Quarter Ended
1		Income from operations
		Gross Sales	2535.400
		Less : Excise Duty	259.200
		Less : Sales Tax	88.700
		Net sales from operations	2187.500
2		Expenses
a		Cost of materials consumed	1581.000
b		Changes in inventories of Finished goods and work in progress	4.400
c		Employee benefit expense	102.200
d		Depreciation and amortisation expense	37.000
e		Other Expenses	294.600
f		Total	2019.200
		Profit from operations before Depreciation, Other Income, Finance Cost & Taxes ( EBIDT )	205.300
3		Profit from operations before Other Income, Finance Cost & Taxes ( 1 - 2 )	168.300
4		Other Income	0.800
5		Profit before Finance cost & Taxes ( 3 + 4 )	169.100
6		Finance Cost	30.800
7		Profit from ordinary activities before tax( 5 - 6 )	138.300
8		Tax expense	44.200
a		Income Tax	8.400
b		Deferred Tax Liability/(Asset)	52.600
9		Profit from ordinary activities after tax and before Minority Interest ( 7 - 8 )	85.700
10		Minority Interest	-
11		Profit from ordinary activities after Tax and after Minority Interest ( 9 - 10 )	131.100
12		Cash Profit Paid up Equity Share Capital ( Face value of Rs. 5/- per equity share )
13		Reserves excluding revaluation reserves	-
14		Basic Earnings per Rs. 5/- Share (not annualised)	0.70
15		Basic Cash Earnings per Rs. 5/- Share (not annualised)	1.07
A	Particulars of Shareholding
16	Public Shareholding
	- Number of Shares		73,188,836
	- Percentage of Shareholding		59.98
17	Promoter and Promoter group Shareholding a) Pledged / Encumbered
	- Number of Shares		21,500,000
	- Percentage of Shares ( as a % of the total share -holding of promoters and promoter group )		44.03
	- Percentage of Shares ( as a % of the total share capital of the company )		17.62
	b) Non - Encumbered
	- Number of Shares		27,335,164
	- Percentage of Shares ( as a % of the total share - holding of promoters and promoter group )		55.97
	- Percentage of Shares ( as a % of the total share capital of the company )		22.40
B	Investor Complaints
	Pending at the beginning of the quarter		Nil
	Received during the quarter		37
	Disposed of during the quarter		37
	Remaining unresolved at the end of the quarter		Nil

Notes

a. The above financial results as reviewed by the Audit Committee were taken on record at the Meeting of the Board of Directors held on July 23, 2012. The statutory Auditors have conducted the Limited Review of the above standalone financial results for the quarter ended 30th June 2012.

b. The company is engaged in the manufacture of various steel products which is its Primary Segment which in the context of Accounting Standard 17 is considered as a single segment.

c. Previous figures have been regrouped or reclassified, wherever necessary.

AS PER WEBSITE

PRESS RELEASES

Pennar Industries Limited

Receives orders worth Rs.700.000 Millions from Texmaco, L AND T, Mahindra EPC and others for the supply of wagon components and structurals for solar power plants

Hyderabad, India, September 25, 2012 - Pennar Industries Limited (referred to as "Pennar" or the "Company", BSE: 513228, NSE: PENIND), one of India's leading industrial companies engaged in the production and marketing of specialized and engineered metal products, and pre-engineered buildings, announces receipt of orders worth Rs. 700.000 Millions:

1. Order from Texmaco for the supply of railway wagon components
2. Orders for the supply of structures to 77 MW solar power projects from customers including L AND T, Mahindra EPC Services, Lanco, Azure Power and Moserbaer

Commenting on this development, Mr. Ch Ananth Reddy, Managing Director of Pennar Industries said:

"Pennar is pleased to announce receipt of orders worth Rs.700.000 Millions from prestigious customers in the railways and solar power sectors. The recent order wins reiterate our strong customer relationships and technological capabilities. We are hopeful that the recent bold reforms by the Government will provide an impetus to the growth of the infrastructure, power and railways sectors which will further improve our sales in the current fiscal."

Pennar Industries: Fact Sheet

Pennar is one of India's leading industrial companies engaged in the production and marketing of specialized and engineered steel solutions. The Company is a leading manufacturer of profiles and components in various grades of steel and stainless steel. It caters to the auto, white goods, railways and infrastructure sectors. The Company is also a leading manufacturer of pre-engineered buildings.

The Company has over 30 years of experience and more than 1,000 precision engineered products, 2,500 tools and dies and over 400 customers. Pennar currently has six manufacturing plants located at Patancheru, Sadashivpet and lsnapur, Chennai, Tarapur (Maharashtra) and Hosur (Tamil Nadu) with a total capacity of ~ 300,000 TPA.

Pennar commenced manufacture of cold rolled steel strips in 1988 at Isnapur (45 km from Hyderabad) which currently has a capacity of 67,000 TPA. In 1997, the Company acquired Nagarjuna Steel, Patancheru (32 km from Hyderabad) and in 1999, acquired Press Metal, a unit of Tube Investment (TI), at Tarapur near Mumbai.

Pennar's blue chip customer base includes firms such as Alstom Power, Ashok Leyland, HCC, Honda, Reliance Retail, ITC, L AND T, Moser Baer, Tata BP Solar, Tata Motors, Toyotsu and Voltas.

The Company operates in four divisions and a subsidiary company:

Engineered Products: Provides automobile products, pressed steel components, CDW and ERW tubes for consumer appliances, automobile and general engineering sectors

Cold Rolled Steel Strips (CRSS): Provides CRSS Provides CRSS for automobile, white goods, electrical and engineering companies

Heavy Engineering Products: Addresses the specific requirements of the railway sector and manufactures floors, side walls, end walls, and underframe components for rail wagons and coaches.

Infrastructure Products: Manufactures diverse products for the building sector like purlins, roofing sheets and deck plates. It also manufactures crash barriers for road safety and fabricated structural products for various engineering industries.

Pre-Engineered Buildings: Operates through its subsidiary, Pennar Engineered Building Systems Limited. (PEBS) to manufacture pre engineered building structures. PEBS manufactures modular steel constructions of open-span built up sections, purlins, girts, roofing and wall panels. PEBS has a technical collaboration with NCI Group, a global leader in pre-engineered structures, which enables the Company to provide world class weather proof building.

UNAUDITED CONSOLIDATED AND STANDALONE RESULTS FOR Q1 FY2013 JULY 23, 2012

Hyderabad, India, July 23, 2012 – Pennar Industries Limited (referred to as “Pennar” or the “Company”, BSE: 513228, NSE: PENIND), one of India’s leading industrial companies engaged in the production and marketing of specialized and engineered metal products, and pre-engineered buildings, announces its Unaudited Consolidated and Standalone First Quarter Results for FY2013, in accordance with Indian GAAP

Performance Highlights: Q1 FY2013 vs. Q4 FY2012

• Consolidated Gross Sales of Rs. 3290.000 Millions
• Consolidated Net Sales of Rs. 2855.000 Millions
• Consolidated EBITDA of Rs. 269.000 Millions and EBITDA margins of 9.4% (up 214 bps)
• PEBS1 Net Sales of Rs. 677.000 Millions and EBITDA margins of 10.9% (up 120 bps)
• PEBS Order Book of over Rs. 2300.000 Millions
• Engineered Products Net Sales Rs. 796.000 Millions and EBITDA margins of 8.9% (up 162 bps)

Commenting on the results and performance, Mr. Nrupender Rao, Chairman of Pennar Industries Limited said:

The overall economic environment continues to be tough as the demand from the railways and infrastructure sectors remain under pressure. However, our PEBS segment demonstrated strong performance with over 50% y-o-y growth in net profit. Our selective product diversification has been successful as tubes and solar divisions show consistent performance. We expect these divisions to make increasing contributions as they scale up in the coming quarters. The Company continues to maintain strict financial discipline with a conservative balance sheet and generates positive cash flows. Management is confident that its strategic focus on manufacturing excellence, product innovations, productivity and capacity utilization improvements, will take us through the challenging times.”

Consolidated Financial Highlights

(Rs. Millions)	Ql		y-o-y Growth (%)	Q4	q-o-q Growth (%)	Full year		y-o-y Growth (%)
	FY2013	FY20l2		FY2012		FY2012	FY20ll
Gross Sales	3290.000	3487.000	(5.6)%	4075.000	(19.2)%	13782.000	13243.000	4.1%
Net Sales	2855.000	3085.000	(7 5)%	3580.000	(20.3)%	12158.000	116873.000	4.1%
EBITDA	269000	399.000	(32.6)%	261.000	3.1%	1348.000	1500.000	(10.2)%
EBITDA Margin (%)	9.4%	12.9%		7.3%		11.1%	12.8%
Cash Profit	163.000	250.000	(350)%	151.000	7.7%	819.000	951.000	(13.9)%
Cash Profit Margin (%)	5.7%	8.1%		4.2%		6.7%	8.1%
Net Profit	l09.000	l94.000	(43 8)%	114.000	(4.2)%	620.000	739.000	(16.1)%
Net Profit Margin (%)	3.8%	6.3%		3.2%		5.1%	6.3%
Basic EPS (Rs)	0.90	1.59	(43.8)%	0.94	(4.2)%	5.08	60.6	(16.1)%

Note: Scrap sales has been adjusted against raw materials costs

Economic Environment2

The Index of Industrial production (IIP) in May 2012 increased by 2.4% compared to last year and 3.3% compared to April 2012. During April-May 2012, cumulative IIP growth was 0.8% over the same period last year. The average wholesale price index (WPI) inflation rate for last 12 months (Jun 2011 to May 2012) was 8.51% as compared to 9.40% during the same period last year.

Capital intensive sectors such as infrastructure and capital goods continue to experience a decrease in order inflow and a corresponding slowdown in the completion of the existing orders. This was primarily due to policy delays, downward pressure on demand and stretched working capital cycles. High interest rates and cost inflation continued to impact profitability. The first quarter is seasonally weak for the auto industry and demand was further moderated due to high financing costs and rising fuel prices. The Railways sector awaits the release orders for new wagons/coaches and refurbishment of the existing ones.

Business Performance

Financial Highlights

Q1 FY2013 consolidated Net Sales decreased by 7.5% compared to the prior year. This was primarily due to a slow order inflow in the Heavy Engineering segment. Excluding this segment, consolidated Net Sales grew by 7.4% y-o-y which was primarily driven by the Pre-Engineered Buildings (PEBS) and Engineered Products segments. PEBS continues to show strong growth and contributed to 23.7% of total consolidated Net Sales in Q1 FY2013 up from 18.0% in Q1 FY2012 and 19.7% in Q4 FY2012.

Q1 FY2013 consolidated EBITDA decreased by 32.6% y-o-y. This was primarily due to lower sales in the Heavy Engineering segment. Excluding this segment, consolidated EBITDA decline was 2.7% y-o-y. Raw material prices remained stable as compared to the last year. Q1 FY2013 consolidated EBITDA increased by 3.1% as compared to Q4 FY2012 and margin improved by 214 bps. Q1 FY2013 consolidated Net Profit decreased by 43.8% y-o-y.

Balance Sheet

As of June 30, 2012, the Company had a consolidated Total Debt of Rs. 1725.000 Millions, Cash and Cash Equivalents of Rs. 77.000 Millions, Net Debt of Rs. 1647.000 Millions and Net Worth of Rs. 3250.000 Millions. Total debt consists of Rs. 429.000 Millions of Long Term loans and Rs.1296.000 Millions of Working Capital borrowings. Pennar continues to maintain a conservative leverage position.

	Sales					EBITDA					EBITDA Margin (%)
	Q1			Q4	q-o-q	Q1		y-o-y	Q4	q-o-q	Q1			Q4	q-o-q
(Rs. Crore)	FY13	FY12	Growth (%)	FY12	Growth (%)	FY13	FY12	Growth (%)	FY12	Growth (%)	FY13	FY12	Change (bps)	FY12	Change (bps)
Engineered Products	796.000	608.000	30.9%	798.000	(0.3)%	71.000	60.000	17.9%	58.000	22.0%	8.9%	9.9%	(98)	7.3%	162
Cold Rolled Steel Strips	65.0007	776.000	(15.3)%	768.000	(14.4)%	59.000	64.000	(8.5)%	54.000	8.2%	8.9%	8.3%	66	7.1 %	187
Infrastructure	355.000	368.000	(3.3)%	933.000	(61.9)%	29.000	39.000	(26.7)%	57.000	(49.9)%	8.1%	10.6%	(257)	6.1%	193
Standalone (Excl. HE)	1809.000	1752.000	3.3%	2500.000	(27.6)%	158.000	163.000	(3.1)%	170.000	(6.7)%	8.7%	9.3%	(58)	6.8%	196
Heavy Engineering	379.000	780.000	(51.5)%	384.000	(1.4)%	47.000	171.000	(72.5)%	48.000	(1.4)%	12.4%	21.9%	(950)	12.4%	(0)
Total Standalone	2188.000	2532.000	(13.6)%	2884.000	(24.1)%	205.000	334.000	(38.6)%	217.000	(5.5)%	9.4%	13.2%	(382)	7.5%	185
Pre-Engineered Buildings	677.000	556.000	21.8%	707.000	(4.2)%	73.000	65.000	13.7%	68.000	7.6%	10.9%	11.6%	(77)	9.7%	120
Sub Total	2865.000	3088.000	(7.2)%	3590.000	(20.2)%	279.000	399.000	(30.1)%	286.000	(2.4)%	9.7%	12.9%	(319)	8.0%	178
Regrouping Adjustments	(10.000)	(2.000)		(10.000)		(10.000)	0.0		(25.000)
Total Consolidated	2855.000	3085.000	(7.5)%	3580.000	(20.3)%	269.000	399.000	(32.6)%	261.000	3.1%	9.4%	12.9%	(352)	7.3%	214
Less: Heavy Engineering	379.000	780.000	(51.5)%	384.000	(1.4)%	47.000	171.000	(72.5)%	48.000	(1.4)%	12.4%	21.9%	(950)	12.4%	(0)
Total Consolidated (Excl. HE)	2476.000	2305.000	7.4%	3196.000	(22.5)%	222.000	228.000	(2.7)%	213.000	4.2%	9.0%	9.9%	(94)	6.7%	230

Pre-Engineered Buildings (PEBS)

In Q1 FY2013, price realizations increased by 3.6% to Rs. 69,715/MT, compared to last year. PEBS Net Profit increased by 50.3% y-o-y and margins improved by 89 bps. The segment received a number of orders from new customers including Areva Industries, Hindustan Unilever, Shimuzu Corporation, Tata Steel Processing and Distribution Limited and Volvo India, and repeat orders from AGI, Larsen AND Toubro and Schindler. The order book as on date was over Rs. 2300.000 millions.

Engineered Products

Q1 FY2013 Net Sales grew by 30.9% and volumes grew by 28.8% compared to same period last year. Both the volume and value growth was due to increased sales from higher value added products including CDW, Tubes and blanks. The Company’s focus on new product lines helped manage growth in the Engineered Products division.

Cold Rolled Steel Strips (CRSS)

Q1 FY2013 Net Sales decreased by 15.3% and volumes declined by 16.3% y-o-y as the Company continues to focus on higher realization and shift capacity utilization for higher value added products.

Heavy Engineering

Q1 FY2013 Net Sales growth in this segment was significantly impacted by slower off-take from the railway industry as compared to last year. On a q-o-q basis, the segment growth remained relatively flat.

Infrastructure

Q1 FY2013 Net Sales decreased by 3.3% and volumes declined by 6.9% y-o-y. This was primarily due to a change of sales mix. Volumes from road safety and fabrication products declined, which was offset to an extent by increased volumes from solar structurals and fabrication.

Strategic Initiatives

The Company completed the first phase of capacity expansion projects at the Isnapur and Tarapur plants, increasing the capacity of these plants by 12,000 MT to 82,000 MT. The expansion added new production capacity for CDW tubes and increased capacities for electrostatic precipitator electrodes and precision tubes for automobiles. These projects have been funded from internal cash accruals.

Performance Outlook

The Indian economy continues to experience declining GDP growth, a relatively high interest rate environment, inflationary pressures and depreciation in the Rupee. Although the IIP growth and inflation have both shown some improvement recently, uncertainty around the Indian economy prevails. Management remains cautious in its approach while making decisions, at the same time, being optimistic about the medium term domestic growth story. Pennar focuses on maintaining balance sheet strength and generating positive cash flows.

The Company’s PEBS segment continues to outperform despite the overall challenging environment. With its design and engineering strengths, and customer centric approach, PEBS is optimally positioned to capitalize on the attractive growth dynamics of the Indian pre-engineered buildings sector. Going forward, Pennar expects this segment to continue delivering growth and profitability. New product lines including tubes and solar structurals are expected to make meaningful contributions to the overall growth of the Company.

FIXED ASSETS

· Freehold Land

· Roads

· Buildings

· Plant and Machinery

· Factory Equipments

· Office Equipments

· Computers

· Furniture and Fittings

· Vehicles

· Computer Accessories

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. 61.05
UK Pound	1	Rs. 90.89
Euro	1	Rs. 78.27

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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.