MIRA INFORM REPORT

Report Date :

27.06.2013

IDENTIFICATION DETAILS

Name :	PRAJ INDUSTRIES LIMITED
Registered Office :	"Praj House", Bavdhan, Pune – 411021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.11.1985
Com. Reg. No.:	11-038031
Capital Investment / Paid-up Capital :	Rs.354.930 Millions
CIN No.: [Company Identification No.]	L27101PN1985PLC038031
Legal Form :	A Public Limited Liability company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of Process and Project Engineering.
No. of Employees :	960 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 22720000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track record. There appears some dip in the sales turnover during 2013. However, financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be correct 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA (Long Term Rating)
Rating Explanation	High degree of safety and very low credit risk.
Date	April 16, 2013

Rating Agency Name	CRISIL
Rating	A1+ (Short Term Rating)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	April 16, 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

Management Non Co-Operative (91-20-22951511)

LOCATIONS

Registered/ Head Office :	"Praj House", Bavdhan, Pune - 411021, Maharashtra, India
Tel. No.:	91-20-22951511/ 22952214/ 39806666/ 22905000/ 39806314
Fax No.:	91-20-22951718/ 22951515
E-Mail :	dattatrayanimbolkar@praj.net info@praj.net deepakmogal@praj.net vinatimoghe@praj.net
Website :	http://www.praj.net
Factory 1 :	Gat No.748, Opposite Metacolour, Sanaswadi, Taluka Shirur, District Pune - 412 207, Maharashtra, India
Tel. No.:	91-2137-252328/ 252913
Fax No.:	91-2137-252911
Factory 2 :	Gat No.745, Opposite Metacolour, Sanaswadi, Taluka Shirur, District Pune - 412 207, Maharashtra, India
Factory 3 :	Plot No. E-20 and E-21 Additional MIDC Area, Jejuri Taluka Purandar, District Pune – 412303, Maharashtra, India
Export Oriented Unit 1 :	Kandla SEZ Unit I, Plot No 307 to 314, Sector IV, Gandhidham, Kutch - 370230, Gujarat, India
Export Oriented Unit 2 :	Kandla SEZ Unit II, Plot No 282 to 286 and 294 to 298, Sector IV, Gandhidham, Kutch - 370230, Gujarat, India
North Office :	D-26, 1st Floor, Sector 3, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-4235341 / 42 / 43
Fax No.:	91-120-4235344
South Office :	No.173, 10th Cross, 10th 'A' Main, Indiranagar, IInd Stage, Bangalore – 560038, Karnataka, India
Tel. No.:	91-80-25251680/ 25251484
Fax No.:	91-80-25202432
R and D Centre	Matrix - The Innovation Center “Gat No. 402, 403, 1098, Villgae Urwade, Taluka Mulshi, District Pune, Maharashtra, India
Tel. No.:	91-20-66754000/ 22922001
Fax No.:	91-20-22922004
International Office :	Located at: North America, Latin America and CaribbeansSouth Africa Thailand United Arab Emirates Brazil

DIRECTORS

As on: 31.03.2013

Name :	Mr. Pramod Chaudhari
Designation :	Executive Chairman
Name :	Mr. Gajanan Nabar
Designation :	Chief Executive Officer and Managing Director
Date of Birth/Age :	16.11.1963
Date of Appointment :	15.11.2010
Qualification :	Master’s degree in Organic Chemistry and in Management from Bombay University
Name :	Mr. Berjis Desai
Designation :	Director
Date of Birth/Age :	02.08.1956
Date of Appointment :	27.08.1993
Qualification :	LLB. Masters degree in law from Cambridge University
Name :	Mr. Kishor Chaukar
Designation :	Director
Name :	Mr. Parimal Chaudhari
Designation :	Director
Date of Birth/Age :	01.08.1956
Date of Appointment :	21.07.2006
Qualification :	Post Graduate degree in Journalism and Communications from Pune University and MS in Television-Radio-Film (TRF) from Syracuse University, USA.
Name :	Mr. Prakash Kulkarni
Designation :	Non-Executive Director
Date of Birth/Age :	09.06.1947
Date of Appointment :	11.10.2010
Qualification :	Graduate Engineer from VJTI and an alumni of Harvard Business School.
Name :	Mr. Rajiv Maliwal
Designation :	Non-Executive Director
Name :	Mr. Sivaramakrishnan Iyer
Designation :	Director
Date of Birth/Age :	28.07.1967
Date of Appointment :	17.04.2003
Qualification :	Bachelor’s degree in Commerce and Chartered Accountant.
Name :	Mr. Utpal Sheth
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Dattatraya Nimbolkar
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	55350000	31.19
Sub Total	55350000	31.19
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	55350000	31.19
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	132275	0.07
Financial Institutions / Banks	7985701	4.50
Foreign Institutional Investors	19352625	10.91
Sub Total	27470601	15.48
(2) Non-Institutions
Bodies Corporate	23486978	13.23
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	38695819	21.80
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	25469565	14.35
Any Others (Specify)	6992116	3.94
Clearing Members	734504	0.41
Non Resident Indians	4577362	2.58
Trusts	58000	0.03
Foreign Corporate Bodies	1622250	0.91
Sub Total	94644478	53.33
Total Public shareholding (B)	122115079	68.81
Total (A)+(B)	177465079	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)	177465079	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

		Details of Shares held
Sl. No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Pramod Chaudhari	3,73,50,000	21.05
2	Parimal Chaudhari	1,35,00,000	7.61
3	Parimal Chaudhari	45,00,000	2.54
	Total	5,53,50,000	31.19

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

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Jhunjhunwala Rakesh Radheshyam	12403624	6.99
2	Tata Capital Financial Services Limited	13422400	7.56
3	LIC of India Market Plus 1 Growth Fund	7108481	4.01
4	Smallcap World Fund Inc	6825000	3.85
5	Government Pension Fund Global	2260393	1.27
6	Vinod Khosla	2865969	1.61
7	Jhunjhunwala Rekha Rakesh	2598000	1.46
8	American Funds Insurance Series Global Small Capitalization Fund	2050000	1.16
9	Credit Suisee (Singapore) Limited	3224455	1.82
	Total	52758322	29.73

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

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Jhunjhunwala Rakesh Radheshyam	12403624	6.99
2	Jhunjhunwala Rakesh Radheshyam	2598000	1.46
3	Tata Capital Financial Services Limited	13422400	7.56
	Total	28424024	16.02

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Process and Project Engineering.

GENERAL INFORMATION

No. of Employees :	960 (Approximately)
Bankers :	Bank of Maharashtra The Royal Bank of Scotland HSBC Limited

Banking Relations :	--
Auditors :
Name :	B. K. Khare and Company Chartered Accountants
Address :	706/ 708, Sharda Chambers, New Marine Lines, Mumbai - 400020, Maharashtra, India
Tel. No.:	91-22-22000607/ 7318/ 6360/ 66315835/ 36
Fax No.:	91-22-22003476
E-Mail :	info@bkkhareco.com
Internal Auditors :	Khare Deshmukh and Company Chartered Accountants
Cost Auditors :	Dhananjay V. Joshi and Associates Chartered Accountants
Solicitors :	J. Sagar Associates, Mumbai
Subsidiaries :	Pacecon Engineering Projects Limited Praj Far East Comapny Limited BioCnergy Europa B.V. Praj Americas Inc. (from June 2009) Praj Industries (Africa) Pty Limited Neela Systems Limited
Fellow Subsidiaries :	Praj Industries (Tanzania) Limited Praj Industries (Sierra Leone) Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
450000000	Equity Shares	Rs.2/- each	Rs.900.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
177465000	Equity Shares	Rs.2/- each	Rs.354.930 Millions

a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

	No. Million	Rs. In Millions
At the beginning of the period	179.548	359.096
Add: Allotted during the period pursuant to exercise of employees stock options	--	--
Less: Shares bought back during the period pursuant to buy back scheme	2.083	4.166
Outstanding at the end of the period	177.465	354.930

b) Terms/Rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of the equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2013, the amount of per share dividend recognised as distributed to equity shareholders was Rs. 1.62 (31st March, 2012 Rs. 1.62). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distributing all preferential amounts.

c) Shares held by holding/ultimate holding company and/or their subsidiaries/associates:

The Company does not have any holding or ultimate holding company.

d) Details of shareholders holding more than 5% shares in the company:

Equity shares of Rs. 2 each fully paid	No. Million	% of holding
Pramod Chaudhari (Promoter)	37.35	21.05%
Parimal Chaudhari (Promoter)	18.00	10.14%
Tata Capital Financial Services Limited	13.42	7.56%
Rakesh Jhunjhunwala	15.00	8.45%
Government Pension Fund Global	2.26	1.27%

e) Shares reserved for issue under options:

Shares reserved for issue under the Employee Stock Option Plan (ESOP)

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

	No. Million
Equity shares allotted as fully paid bonus shares by capitalisation of securities premium*	91.373
Equity shares allotted as fully paid-up pursuant to contracts for consideration other than cash	--
Equity shares bought back by the Company	7.314

* The Company has declared Bonus in the ratio of 1:1 during the financial year 2007-08.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	354.930	359.096
(b) Reserves & Surplus	5325.495	5148.677
(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)	5680.425	5507.773
(3) Non-Current Liabilities
(a) long-term borrowings	1.463	0.000
(b) Deferred tax liabilities (Net)	116.301	131.903
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	89.678	55.202
Total Non-current Liabilities (3)	207.442	187.105
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	1210.730	1397.677
(c) Other current liabilities	1639.384	2094.800
(d) Short-term provisions	1655.040	1577.709
Total Current Liabilities (4)	4505.154	5070.186
TOTAL	10393.021	10765.064
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1712.905	1618.935
(ii) Intangible Assets	15.837	27.111
(iii) Capital work-in-progress	478.083	98.086
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1011.432	899.341
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	97.496	108.255
(e) Other Non-current assets	100.020	100.020
Total Non-Current Assets	3415.773	2851.748
(2) Current assets
(a) Current investments	1479.330	1350.000
(b) Inventories	755.669	740.835
(c) Contracts in Progress	331.025	689.020
(d) Trade receivables	2180.111	2576.110
(e) Cash and cash equivalents	285.352	1087.887
(f) Short-term loans and advances	1945.761	1469.464
(g) Other current assets	0.000	0.000
Total Current Assets	6977.248	7913.316
TOTAL	10393.021	10765.064

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		369.557
2] Share Application Money		0.000
3] Reserves & Surplus		5219.931
4] (Accumulated Losses)		0.000
NETWORTH		5589.488
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		143.167
TOTAL		5732.655
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1418.863
Capital work-in-progress		139.054
INVESTMENT		2640.419
DEFERREX TAX ASSETS		0.000
Non- Current Assets		100.015
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	628.542
	Sundry Debtors	1987.232
	Cash & Bank Balances	1275.185
	Other Current Assets	253.498
	Loans & Advances	1243.632
Total Current Assets		5388.089
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1282.650
	Other Current Liabilities	1655.417
	Provisions	1015.718
Total Current Liabilities		3953.785
Net Current Assets		1434.304
MISCELLANEOUS EXPENSES		0.000
TOTAL		5732.655

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	7264.678	8804.441	5529.310
		Other Income	291.763	432.295	247.739
		TOTAL (A)	7556.441	9236.736	5777.049
Less	EXPENSES
		Cost of materials consumed	4165.128	5487.553	3314.988
		(Increase)/Decrease in inventories of Finished Goods, Work-in-Progress	(58.295)	(30.151)	(106.089)
		Employee Benefit Expenses	949.685	884.587	718.858
		Other Expenses	1560.543	1632.340	1138.457
		TOTAL (B)	6617.061	7974.329	5066.214
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		939.380	1262.407	710.835
Less	FINANCIAL EXPENSES (D)		3.275	1.448	0.059
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		936.105	1260.959	710.776
Less/ Add	DEPRECIATION/ AMORTISATION (F)		128.902	141.730	111.356
	PROFIT BEFORE TAX (E-F) (G)		807.203	1119.229	599.420
Less	TAX (H)		145.388	460.984	64.695
	PROFIT AFTER TAX (G-H) (I)		661.815	658.245	534.725
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3720.784	3462.571	3251.936
Less	APPROPRIATIONS
		Transfer to General Reserve	66.500	65.900	53.500
		Proposed Final	287.493	287.493	232.821
		Tax on Dividend	48.860	46.639	37.769
	BALANCE CARRIED TO THE B/S		3979.746	3720.784	3462.571
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3314.872	3513.562	1625.624
		Design and engineering services, software and consultancy	78.355	119.986	212.428
	TOTAL EARNINGS		3393.227	3633.548	1838.052
	IMPORTS
		Raw Materials	108.291	409.559	316.621
		Capital Goods	10.446	82.705	50.904
		Components and spare parts	334.467	754.056	284.035
	TOTAL IMPORTS		453.204	1246.320	651.560
	Earnings Per Share (Rs.)
	Basic		3.73	3.58	2.89
	Diluted		3.73	3.57	2.89

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	8.76	7.13	9.26
Net Profit Margin (PBT/Sales)	(%)	11.11	12.71	10.84
Return on Total Assets (PBT/Total Assets}	(%)	9.07	11.46	8.81
Return on Investment (ROI) (PBT/Networth)		0.14	0.20	0.11
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.55	1.56	1.36

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. In Millions)

Particulars	31.03.2013	31.03.2012	31.03.2011
Sundry Creditors
Dues to Micro and Small enterprises under MSMED Act, 2006	41.551	34.934
Dues to other parties	1169.179	1362.743
Total	1210.730	1397.677	1282.650

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Loan from others	1.463	0.000
Total	1.463	0.000

Notes:

Loan received from Department of Biotechnology (DBT) carrying interest at the rate of 2%.

The Company has received disbursement of loan partly and full disbursement is not made. The loan is repayable after completion of the project as approved by ‘DBT’.

Completion date of project cannot be determined at present.

MANAGEMENT DISCUSSION AND ANALYSIS

Overview

Even as the developed economies continue to go through financial troughs and crests, the emerging economies provide interesting opportunities for all business segments of Praj. The Company expects that these economies will continue to focus upon alternative energy sources as part of their energy basket. Investments in alternate energy seem to be on the rise in these regions.

Factors like environmental protection, water scarcity, pollution (air, land, water), global warming will converge to provide for opportunities for sustainable technology solutions. Throughout this past fiscal, the Company has shown how technology can be put to use for sustainable solutions.

Financial Review

While sales were down by 17.5% compared to previous fiscal, results of specific actions like cost reduction can be seen, with direct cost as percentage of sales down by 5%. For the fiscal 2012-13, EBIDTA level was stable. The Company is executing projects under the Local Execution Companies, termed as LEC. These Companies are subsidiaries/step down subsidiaries of the Company. While the profit margins for Praj and LECs combined receded by 26 % over the previous fiscal, the net margins for Praj and LECs combined improved by 1.35%. Order inflow for Emerging Business improved 83% over previous fiscal. Scale up of these businesses will see improvement in margins.

Industry Overview

Alcohol/Ethanol Industry

The year 2012-13 has seen some new developments in the ethanol space. Almost every country in the world is concerned about energy security leading to implementation of ethanol blending program. This is evident from the fact that Thailand has moved to E20 whereas Colombia has achieved E8 and is moving to E10. Brazil has moved to E25 and Australia has begun blending in certain provinces. India too has mandated E5 blending starting June, 2013. The production of ethanol continues unabated because of the sheer benefits – environmental, social and economic.

Apart from India, pockets of growth in the beverage alcohol market are also observed. Especially in South East Asia and Africa.

Development in 2nd generation ethanol is also catching pace. As many as eleven demo plants are at various stages of implementation all around the world, including that of the company.

Similar to a petroleum refinery, the 2nd generation ethanol manufacturing plant has the potential to be a “Biorefinery” for production of high value products like specialty chemicals, medicines, food and of course energy in the form of transport fuel i.e. ethanol, heat and electricity and even bioplastics.

The company has been paving the way to bioeconomy since 2006 and is the very first company in the tropics to take steps in this direction. It is in the process of installing a 2nd Generation commercial sized demo plant for cellulosic ethanol production, which will be set up in India and will be operational in mid CY 2014.

Brewery/Beer Projects

Recently, the company made breakthrough in the international market with an order from South East Asia as part of its efforts to internationalize the brewery segment. The beer markets in South East Asia, Africa and South America are expected to clock a volume CAGR of between 3.5-5% by 2017. Given the size of these markets, the opportunity for new capacity is encouraging. These are also markets where the Company has a good foothold and strong delivery mechanism.

Water and Wastewater Systems

Industrial water demand in India could surge 57% by 2025. While industrial growth in many developed economies has stalled or slowed, there are many new pockets of growth in different geographies where prudent water management practices are being implemented. Challenges in manufacturing processes in various industries call for technologies that can Reduce, Recycle, Reuse and also achieve ‘Zero Liquid Discharge’. The Company possesses key technologies in this segment and is continually demonstrating its ability to address this demand. To mention a few achievements, the company has won a repeat order from the Tirupur textile belt for a critical wastewater treatment process which has helped re-start the textile operation in the belt. It has bagged several prestigious orders from clients in the chemical and pharmaceutical space.

Critical Process Equipment and Systems

The Company’s ‘capability streams’ in the Critical Process Equipment and Systems are ‘built to print’, ‘design to build’ and ‘systems and skids’. This three year old business segment has now significantly moved from the first stream of ‘built to print’ to ‘design to build’ and ‘skids and systems’. The latter two streams involve high skill engineering and fabrication capability with better value addition. The company has been certified as the Preferred Lethal Equipment Supplier by a global health care and high tech materials company. The company has also received an order from a global engineering company for critical equipment.

Biotech Products

During the fiscal, the Company launched the Livestock Health and Nutrition product. While the Company’s entry into this field is led by its experience and expertise in microbiology related to its existing businesses of distillery and brewery co-products, this segment is a definite growth area with increasing focus on livestock nutrition. The Company’s LHN products are under testing which is a first step towards gaining business.

A GMP compliant manufacturing facility at Jejuri, near Pune is in operation.

Biochemicals and Biorefinery

Praj Matrix - the innovation center has been working on areas other than biofuels. This includes biochemicals, nutraceuticals, livestock health and nutrition. While LHN has already progressed to commercialization stage, we are now looking at a set of interesting biochemicals which are at a precommercial evaluation stage. These biochemicals production can be bolted on to the 2nd generation bioethanol facility converting it into a biorefinery. Praj Matrix is keenly building up skill set and expertise which will ensure that there is always a strong pipeline as also time-to-market is minimized leading to the lowest cost of discovery. A separate business group has been created to address this vertical.

Future Outlook

You Company is on the verge of transforming itself. Not only in terms of businesses, but also business models, geographies, client profiles and applications. The Company aims to diversify its business with 30% coming from emerging businesses in the FY 2013-14 and increasing share of the growth coming from newer businesses. The Company is also setting up a 2nd Gen Cellulosic Ethanol demo plant which will open up new opportunities in advance biofuels as well biochemicals. Sustainable Solutions will always be a part of the Company’s focus, as also Innovation. The Company is aggressively pursuing innovation in many different areas leading to higher competitiveness. Even as markets are slow to take off, the Company’s strong balance sheet as well as its highly skilled and experienced leadership will help overcome tough times.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Claims against Company not acknowledged as debts (primarily relating to performance related claims filed by customers)	46.579	35.679
Disputed demands in appeal towards income tax, Service tax and sales tax	8.041	1.191
Guarantee issued in respect of obligations of a subsidiary	136.613	181.773
Unfulfilled Export Obligations under EPCG scheme to be fulfilled over 8 years	48.910	129.711

FIXED ASSETS

Tangible Assets

• Land (Freehold)
• Buildings
• Plant and Machinery
• Computers
• Office Equipment
• Vehicles
• Furniture and Fixtures

Intangible Assets

• Technical Knowhow
• Softwares
• Praj Brand

AS PER WEBSITE DETAILS

Press Release

Praj’s breakthrough technology helps to resolve textile pollution issue at Tirupur

Praj receives repeat orders for Zero Liquid Discharge Solutions for Textile Wastewater Treatment

PUNE, June 5th, 2013: Tirupur being a textile belt, faced the crisis of severe pollution of water bodies due to discharge of coloured effluent from the bleaching and dyeing units. More than 600 bleaching and dyeing units remained closed for almost two years for want of a reliable solution. Though various technologies were implemented, none could solve the groundwater pollution problem effectively. This extended the closure of textile dyeing clusters till the installation of the Zero Liquid Discharge (ZLD) unit by Praj which has helped to build confidence for reopening of the textile units in compliance with the pollution norms.

Praj, a global process engineering solutions provider, offers innovative solutions to significantly add value in Water and Waste Water Treatment Plants, Bio-ethanol and Brewery Plants, Critical Process Equipment and amp; Systems, has received their 2nd repeat order for ZLD application from the Common Effluent Treatment Plants (CETPs) based in Tirupur textile belt. The first two orders were from Veerapandi Textile CETP and the 3rd one from Sirupooluvapatti CETP, Tirupur, Tamilnadu

Successful operation of 1st ZLD system at Veerapandi CETP, Tirupur leads to repeat order for Praj:

Praj successfully commissioned a 100 Kilo litre per day ZLD system based on multi effect evaporation technology at Veerapandi, Tirupur. The entire plant was designed, engineered, fabricated and erected by Praj on turnkey basis. The final end products are process condensate and salts which are reusable in the textile dyeing units. The solution treats effluent stream rejects of Reverse Osmosis (RO) plant applying Prajandrsquo;s innovative Evaporation andamp; Crystallization technology. This unique technology is instrumental in solving the groundwater pollution problems arising due to discharge of colorants.

In order to arrive at the most appropriate solution, Praj deployed the best resources and efforts. This involved periodic collection and testing of effluent samples, study of existing effluent treatment plants, developing customized process andamp; engineering solutions and demonstrating the efficacy of the solution on the first plant at Veerapandi.

Based on the successful operation of the first plant at Veerapandi CETP, Praj contracted a second order for treatment of effluent from the textile dyeing cluster. The CETP will treat 700 kilo liters of effluent per day.

Sirupooluvapatti CETP order

Praj bagged an order from Sirupooluvapatti CETP Limited for treatment of 5000 Kilo litres per day of effluent, making it the largest installation. It consists of 3 stage treatment including the ZLD system based on multi effect evaporation.

And ldquo; The repeat orders show the faith of client in Prajandrsquo;s technology and its commitment to the industry and society. Our Zero Liquid Discharge System is energy efficient with low maintenance cost and operates for a longer period between cleaning cycles. The salts recovered from the CETP plant are being re-used by the dyeing units, resulting into considerable savings in operating cost, annually. and rdquo; said Mr. Pramod Chaudhari, Executive Chairman, Praj Industries.

While the first Veerapandi order of 100 kilo litres per day was contracted in fiscal 2011-12, the repeat orders were contracted in end-fiscal 2012-13.

Praj launched its water and amp; wastewater treatment solutions over 3 years ago. Since then, Praj has supplied technology and amp; systems for many a industrial applications including pharmaceuticals, chemicals, agro chemicals, f and amp; b, textiles and other Industrial CETPs including orders from overseas.

About Praj Industries Limited:

Praj is a global Indian company that offers innovative solutions to add significant value to bio-ethanol facilities, brewery plants, water and amp; wastewater treatment systems as well as process engineering, plant and amp; equipment for customers worldwide. With over 500 references across five continents, Praj is a leading Ethanol Technology and amp; Plant supplier with a strong focus on second-generation bioethanol process development. Praj Matrix - the innovation center, is the R and amp; D Center of Praj Industries. Praj is a knowledge-based company with expertise and experience in bioprocesses and engineering. It delivers know-how, license, engineering design, plant and amp; equipment, project management, commissioning and customer care, and turnkey projects. Led by an accomplished and caring leadership, Praj is a socially responsible corporate citizen. Praj is listed on the Bombay and National Stock Exchanges of India.

PRAJ DECLARES Q4 RESULTS

13 May 2013

Praj Industries (Praj), the global process engineering and solutions provider for biofuels, alcohol and brewery, water and wastewater and process equipment globally, announced its audited financial results for Q4 and FY2012-2013.

Praj Board recommends 81% dividend: Net Profit Up

Praj contracts alcohol plant order in South East Asia for worth Rs. 1600.000 Millions

Repeat Orders for Textile CETP

May 13, 2013: Praj Industries (Praj), the global process engineering and solutions provider for biofuels, alcohol and brewery, water and wastewater and process equipment globally, announced its audited financial results for Q4 and FY2012-2013.

Performance Review for Q4 FY2013- Standalone:

• Income from operations stood at Rs 1877.700 Millions (Rs. 2680.100 Millions).
• The EBITDA (excluding other income) is at Rs. 185.900 Millions (9.9%) when compared to Rs. 277.700 Millions (10.31%) in Q4 FY2012.
• PBT is at Rs. 193.500 Millions (Rs. 419.700 Millions) for the period at a margin of 10.10%.
• PAT is at Rs. 148.400 Millions (Rs. 101.600 Millions) for the period at a margin of 7.75%.

Performance Review for FY2013- Standalone:

• Income from operations stood at Rs. 7294.700 Millions (Rs. 8808.600 Millions).
• The EBITDA (excluding other income) is at Rs. 677.200 Millions when compared to Rs. 834.200 Millions in FY2012.
• PBT is at Rs. 807.200 Millions (Rs. 1119.200 Millions) for the period at a margin of 10.68%.
• PAT is at Rs. 661.800 Millions (Rs. 658.200 Millions) for the period at a margin of 9%.

On a consolidated basis for FY 2012-13, Praj registered an operating income of Rs. 9220.00 Millions (Rs. 10030.000 Millions) and a PBT of Rs. 923.200 Millions (Rs. 1192.800 Millions) with PAT of Rs. 715.300 Millions (Rs. 703.300 Millions). EBIDTA was at Rs. 116.16 Millions (Rs. 136.96) with a margin of 13%.

On a standalone and consolidated basis the net profit gained over the previous fiscal.

The Board of Praj Industries has recommended a dividend of 81% at Rs. 1.62 per equity share of Rs. 2/- each.

Key Developments during the quarter:

• During the quarter, Praj contracted a significant order for a 200,000 litres per day ethanol plant from a client in South East Asia. The delivery is expected to be completed within 15 months. Beverage Alcohol consumption in Philippines is on the rise and so is opportunity for new plant construction for fuel ethanol. The order value is Rs. 1600.000 Millions.
• Praj also made significant order gains in the emerging businesses. Praj contracted a repeat order for supply and installation of Zero Liquid Discharge System for Textile CETP at Thirupur. This follows the successful operation of the previous technology which ensured that not only did the plant recycle the salts recovered from the process but it also reduced energy and operating cost. Another key order from a major EPC Company for their project in Russia which involves fabrication of high thickness vessel.
• As on date, the pending order book stands at Rs. 8700.000 Millions.
• Nearly half the quantity required for the 5% ethanol blending program in India has been tendered for with balance yet to be closed.
• Praj’s 2nd Generation Cellulosic Ethanol Demo Plant will break ground by end Q2 FY 2013- 14.

PRAJ ACQUIRES STAKE IN NEELA SYSTEMS

9 January, 2012

Praj Industries (Praj), global leaders in renewable energy and environmental technologies, acquired majority stake (50.20%) in Neela Systems Limited for approximately Rs.640.000 Millions. Future arrangements provide for further increase in stakes by Praj.

Accelerates entry into High Purity Water in Pharma, Biotech and Life Sciences Sector

January 9, 2012: Praj Industries (Praj), global leaders in renewable energy and environmental technologies, acquired majority stake (50.20%) in Neela Systems Limited for approximately Rs. 640.000 Millions. Future arrangements provide for further increase in stakes by Praj.

Neela is a Mumbai based Company having business interests in Water Treatment and Modular Process Systems, focused on Biotech, Pharma, Life Sciences and Cosmetics Industries. Although Neela will now become a subsidiary of Praj, it will continue to operate as an independent entity.

Established in 1989 by Mr.Himanshu Shah, Neela has a turnover of approximately Rs.900.000 Millions, including exports. It is a leader in high purity water segment. Neela has a state-of-the-art manufacturing facility at Wada, Thane to build US FDA, UKMCA and WHO compliant systems. The Company has been growing and clocking profits over the years. The global reach and involvement of Praj is expected to enable accelerated growth for Neela.

“Praj was scouting for acquisitions in the area of water and wastewater treatment (W and WWTP) since it entered the space in early 2010. addresses areas wherein Praj wants to build a stronger presence, globally” said Pramod Chaudhari, Chairman, Praj Industries.

The Pharma and F and B sectors have been showing strong growth in India and emerging economies. Going forth, these sectors will see further expansion. As per the study conducted by Praj on business opportunities in W and WWTP applications, these sectors are major focus areas as it has very specific requirement of high purity water and critical wastewater treatment. Neela is a niche player in the high purity water treatment for the Biotech, Pharma, Life Sciences and Cosmetics.

This acquisition will provide Praj with a deeper and wider penetration into the fast-growing, specialized Pharma and Life Sciences segment.

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.59.85
UK Pound	1	Rs.92.31
Euro	1	Rs.78.23

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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.