MIRA INFORM REPORT

Report Date :

23.05.2013

IDENTIFICATION DETAILS

Name :	PIPAVAV DEFENCE AND OFFSHORE ENGINEERING COMPANY LIMITED (w. e. f. 29.09.2011)
Formerly Known As :	PIPAVAV SHIPYARD LIMITED (w. e. f. 19.04.2005) PIPAVAV SHIP DISMANTLING AND ENGINEERING LIMITED
Registered Office :	Pipavav Port, Post Ucchaya, Via Rajula, Rajual – 365560, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.10.1997
Com. Reg. No.:	04-033193
Capital Investment / Paid-up Capital :	Rs.6911.984 Millions
CIN No.: [Company Identification No.]	L35110GJ1997PLC033193
TAN No.: [Tax Deduction & Collection Account No.]	mump27060F
PAN No.: [Permanent Account No.]	AABCP1491L
Legal Form :	Public Limited Liability Company. The Company shares are listed to the stock exchanges.
Line of Business :	Subject is engaged in Commercial Shipbuilding, Ship Repair, Offshore Fabrication and Servicing and Naval Shipbuilding and Repair.
No. of Employees :	3000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 79000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. There appears slight dip in the profitability. However, general financial position of the company seems to be strong. Performance capacity appears to be high. Fundamental appears to be healthy and strong. Trade relations are reported to be fair. Business is active. Payments are regular and as per commitment. The company can be considered for normal 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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Renuka
Designation :	Accounts Department
Contact No.:	91-2794-661000
Date :	22.05.2013

LOCATIONS

Registered Office :	Pipavav Port, Post Ucchaiya, Via Rajula, District Amreli, Rajual – 365560, Gujarat, India
Tel. No.:	91-2794-286200 / 201 / 661000
Fax No.:	91-2794-286373 / 661100
E-Mail :	contact@pipavavshipyard.com careers@pipavavshipyard.com company.secretary@pipavavshipyard.com nileshkmehta@gmail.com
Website :	www.pipavavshipyard.com
Location :	Owned
Corporate office :	SKIL House, 209, Bank Street Cross Lane, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-66199126 / 6619 9000
Fax No.:	91-22-67158099 / 2269 6022 / 2265 9939
SEZ Units / Plant 1:	Village Rampara –II, Taluka Rajula and Village Lunsapur, Taluka Jafrabad, District – Amreli – 365560, Gujarat, India
Plant 2 :	Pipavav Port, Post Ucchaiya, Via-Rajula, District Amreli – 365 560, Gujarat, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Nikhil Prataprai Gandhi
Designation :	Chairman
Address :	38, Sagar Villa, Bhulabahai Desai Road, Mumbai – 400026, Maharashtra
Date of Birth/Age :	25.04.1958
Qualification :	B.Com
Date of Appointment :	17.10.1997
Name :	Mr. Venkiteshwaran Subramanian
Designation :	Independent Director
Address :	A/7 and 2, Lloyds Garden, 7^th Floor, Appasaheb Marthe Marg, Prabhadevi, Worli, Mumbai-400025, Maharashtra, India
Date of Birth/Age :	22.01.1941
Qualification :	B.Sc. with Physics and Mathematics – 1960, Bombay University. LL.B, Bombay University.
Date of Appointment :	18.09.2007
Directorships held on other companies :	Dolphin Offshore Enterprises (India) Limited. (also Vice Chairman of the company) Dolphin Offshore Shipping Limited Indian Register of Shipping Mahagujarat Chamunda Cements Company Private Limited Mundra Port And Special Economic Zone Limited National Securities Clearing Corporation Limited The Clearing Corporation of India Limited Pandi Correspondents Private Limited
Name :	Mr. Ramunni Menon Premkumar
Designation :	Independent Director
Address :	101, Praneet, Dr. Jayant Palkar Marg, Worli, Mumbai-400030, Maharashtra, India
Date of Birth/Age :	16.08.1945
Date of Appointment :	15.07.2008
Name :	Mr. Ajai Vikram Singh
Designation :	Independent Director
Address :	Bafhsuri House, Jaipur Road, Ajmer-305001, Rajasthan, India
Date of Birth/Age :	04.07.1945
Date of Appointment :	15.07.2008
Name :	Mr. Samar Ballav Mohapatra
Designation :	Independent Director
Address :	C-15, DGS Co-Operative Housing Society, Plot No. 6, Sector 22, Dwarka, Delhi-110075, India
Date of Birth/Age :	18.06.1944
Date of Appointment :	15.07.2008
Name :	Mr. Bhavesh Prataprai Gandhi
Designation :	Executive Vice Chairman
Name :	Mr. David Rasquinha
Designation :	Nominee Director, EXIM Bank, Independent Director
Date of Appointment :	25.04.2011

KEY EXECUTIVES

Name :	Ms. Renuka
Designation :	Accounts Department
	Audit Committee
Name :	Mr. Ramunni Menon Premkumar
Designation :	Chairman
Name :	Mr. Ajai Vikram Singh
Designation :	Member
Name :	Mr. Bhavesh Prataprai Gandhi
Designation :	Member
Name :	Mr. David Rasquinha
Designation :	Member
Name :	Mr. Venkiteshwaran Subramanian
Designation :	Member
Name :	Mr. Samar Ballav Mohapatra
Designation :	Member
	Shareholder’s and Investors’ Grievances Committee
Name :	Mr. Nikhil Prataprai Gandhi
Designation :	Chairman
Name :	Mr. Bhavesh Prataprai Gandhi
Designation :	Member
Name :	Mr. Venkiteshwaran Subramanian
Designation :	Member
	Remuneration Committee
Name :	Mr. Venkiteshwaran Subramanian
Designation :	Chairman
Name :	Mr. Nikhil Prataprai Gandhi
Designation :	Member
Name :	Mr. Ramunni Menon Premkumar
Designation :	Member
Name :	Mr. Samar Ballav Mohapatra
Designation :	Member
Name :	Mr. Ajit Dabholkar
Designation :	Company Secretary and Compliance officer
Address :	D/801, pearl Drop, Great Eastern Gardens, LBS Marg, Kanjurmarg (West), Mumbai – 400 078, Maharashtra
Date of Birth/Age :	19.06.1965
Date of Appointment :	21.03.2007

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
Bodies Corporate	319970471	45.63
Sub Total	319970471	45.63
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	319970471	45.63
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11703690	1.67
Financial Institutions / Banks	35631860	5.08
Insurance Companies	58465899	8.34
Foreign Institutional Investors	21586015	3.08
Foreign Venture Capital Investors	8598918	1.23
Sub Total	135986382	19.39
(2) Non-Institutions
Bodies Corporate	174206860	24.84
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	16315649	2.33
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	19645821	2.80
Any Others (Specify)	35073205	5.00
Clearing Members	642509	0.09
Trusts	13600	0.00
Non Resident Indians	517096	0.07
Foreign Corporate Bodies	33900000	4.83
Sub Total	245241535	34.97
Total Public shareholding (B)	381227917	54.37
Total (A)+(B)	701198388	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)	701198388	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Name of the Shareholder		Encumbered shares (*)			Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Skil Infrastructure Limited	263466685	37.57	255361685	96.92	36.42	37.02
2	Skil Shipyard Holdings Private Limited	34154292	4.87	32611302	95.48	4.65	4.80
3	Grevek Investment And Finance Private Limited	22349494	3.19	22349494	100.00	3.19	3.14
	Total	319970471	45.63	310322481	96.98	44.26	44.96

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

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	58465899	8.34	8.21
2	Il and Fs Maritime Infrastructure Company Limited	53423871	7.62	7.51
3	Sembcorp Marine Limited	17500000	2.50	2.46
4	Export Import Bank Of India	16628000	2.37	2.34
5	Valiant Mauritius Partners Fdi Limited	16400000	2.34	2.30
6	Sneha Metals Private Limited	13000000	1.85	1.83
7	Smallcap World Fund Inc	12949326	1.85	1.82
8	Il And Fs Financial Services Limited	12617254	1.80	1.77
9	IDBI Bank Limited	15770350	2.25	2.22
10	New York Life Investment Management India Fund (Fvci)II LlC	8598918	1.23	1.21
11	Kundan Infrastructure Private Limited	8324306	1.19	1.17
	Total	233677924	33.33	32.83

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

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation Of India and PACs	68185580	9.72	9.58
2	Il and Fs Maritime Infrastructure Company Limited & PACs	66041125	9.42	9.28
	Total	134226705	19.14	18.86

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Grevek Investment And Finance Private Limited	1,00,00,000	1.43
	Total	1,00,00,000	1.43

BUSINESS DETAILS

Line of Business :	Subject is engaged in Commercial Shipbuilding, Ship Repair, Offshore Fabrication and Servicing and Naval Shipbuilding and Repair.
Terms :
Selling :	L/C / Cash / Credit
Purchasing :	L/C / Cash / Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

3000 (Approximately)

Bankers :

• Union Bank of India, Industrial Finance Branch, Nariman Point, Mumbai – 400021, Maharashtra, India,

Tel. No.: 91-22-22024742

• Industrial and Development Bank of India
• Export Import Bank of India, Centre One, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India
• Housing and Urban Development Corporation Limited, Guru Nirman, 4th Floor, Ahmedabad, Gujarat, India
• Punjab National Bank, Ashram Road Branch
• State Bank of India, Overseas Branch, Worli Trade Centre, Port Box No. 46094, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
• State Bank of India, Overseas Branch, Gujarat, India

Facilities :

Secured Loans	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Long Term Loans from
- Banks	6305.563	6037.812
- Financial Institutions	3709.327	3306.882
Vehicle Loans	2.832	5.203
Short Term Loans from
- Banks	8536.794	4265.000
Total	18554.516	13614.897
Rupee Term loan from Banks and Financial Institutions referred to above and Rs.2847.948 Millions included in current maturities of long term debt in note no. 10 are secured as under: i) Rs.10145.638 Millions by way of First charge and mortgage on all the immovable properties, both present and future and hypothecation of all movable properties, both present and future. ii) Rs.550.000 Millions by way of subservient charge on Fixed Assets, both present and future. iii) Rs.1167.200 Millions by way of subservient charge on Fixed Assets and Current Assets. iv) Rs.1000.000 Millions by way of first pari-passu charge on entire moveable and immoveable properties, both present and future, second pari-passu charge on Current Assets of the Company. Repayment Terms: i) The above Rupee Term Loans including Rs.2847.948 Millions included in current maturities of Long Term Debts carry an interest rate ranging from 11.00% to 14.25%. Out of the above Rupee Term Loan Rs.4401.863 Millions are repayable in 40 equal quarterly instalments commencing from 1st April 2010 to 1st January 2020, Rs.2053.500 Millions in 40 quarterly structured instalments commencing from 31 August 2005 to 28th February 2017, Rs.450.000 Millions in 40 equal quarterly instalments commencing from 1st October 2009 to 1st July 2019, Rs.3077.775 Millions in 36 equal quarterly instalments commencing from 1st April 2011 to 1st January 2020, Rs.162.500 Millions in 32 quarterly equal instalments commencing from 1st October 2010 to 1st July 2018 , Rs.550.000 Millions in 4 quarterly equal instalments commencing from 29th September 2012 to 29th June 2013, Rs.1167.200 Millions in 6 quarterly equal instalments commencing from 1st July 2012 to 1st December 2013 and Rs.1000.000 Millions in 20 equal half yearly instalments commencing from 20th February 2015 to 31 August 2024. All Rupee Term Loans are guaranteed by a promoter group Company and rupee Term Loan of Rs.111453.638 Millions are further secured by pledge of 133,999,994 shares of the Company held by the promoters. 5.4 Rupee Term Loans of Rs.9785.063 Millions (Previous Year: Rs.7977.349 Millions) are also guaranteed by some of the directors in their personal capacities. Lenders in respect of secured loans aggregating to Rs.10145.638 Millions (Previous Year: Rs.10823.783 Millions) have right to convert the loans at their option into fully paid-up equity shares of the Company if the Company is in default for a period more than what is specified in the respective loan agreements. Vehicle Loans referred to above are secured by the hypothecation of the specific vehicles financed. The loans are repayable in monthly equal instalments (including interest) as per repayment schedule starting from 1st May, 2010 to 1st April, 2015. As on March 31, 2012, the Company has overdue of Rs.143.759 Millions and Rs.94.877 Millions being the loan amount and interest thereon respectively. Secured Loans from Banks referred to above includes: i) Rs.500.000 Millions secured by way of first charge on the current assets of the Company and second charge on Fixed Assets of the Company. ii) Rs.2000.000 Millions secured by way of subservient charge on fixed assets and current assets of the Company both present and future. iii) Rs.2000.000 Millions secured by way of first pari-passu charge on fixed assets both present and future of the Company with existing lenders. iv) Rs.3235.530 Millions secured by way of first pari-passu charge on entire current assets of the Company, second pari-passu charge on the entire fixed assets of the Company. v) Rs.548.276 Millions secured by way of hypothecation of stock and receivables. vi) Rs.252.988 Millions secured by way of hypothecation of entire stock of raw materials, stock in process, finished goods, consumables, stores and spares, inward RR’s/GR’s receivables and all other current assets of the borrower on pari-passu basis with other consortium banks. Secured loans of Rs.4250.021 Millions are further guaranteed by a promoter group Company and some of the directors in their personal capacity. As on March 31, 2012, the Company has overdue of Rs.456.105 Millions and Rs.41.790 Millions being the loan amount and interest thereon respectively.

Banking Relations :

--

Internal Auditors :

Name :

M. A. Shah and Company

Chartered Accountants

Address :

A-1, Sindhi Niwas, Sitaladevi Temple Road, Mahim, Mumbai – 400016, Maharashtra, India

Statutory Auditors :

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

912-913, Tulsiani Chambers, 212, Nariman point, Mumbai – 400 021, Maharashtra

Subsidiary :

E Complex Private Limited

Associates :

• SKIL Infrastructure Limited
• Coceptia Software Technologies Private Limited

Related Parties :

• Awaita Properties Private Limited
• Grevek Investments and Finance Private Limited

CAPITAL STRUCTURE

AS ON 25.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Rs.10/- each	Rs.10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
701198388	Equity Shares	Rs.10/- each	Rs.7011.984 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
800000000	Equity Shares	Rs.10/- each	Rs.8000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
691198388	Equity Shares	Rs.10/- each	Rs.6911.984 Millions

Reconciliation of Number of equity shares outstanding at the beginning and at the end of the year

Particulars	As at March 31, 2012
	No. of Shares	Rs. In Millions
No. of shares at the beginning of the year	665,798,388	6657.984
Add: Shares issued during the year on conversion of debentures	25,400,000	254.000
No. of shares at the end of the year	691,198,388	6911.984

Shareholders holding more than 5% Shares in the Company

Shares held by	As at March 31, 2012
	No. of Shares	% Holding
SKIL Infrastructure Limited	257,266,685	37.22%
Ovira Logistics Limited	-	-
Smallcap World Fund, Inc.	35,731,000	5.17%
IL and FS Marine Infrastructure Company Limited	53,423,871	7.73%

Reserved Shares

The Convertible Share Warrant Holders have the option to convert their share warrants into 2,05,00,000 Equity Shares (Previous Year 2,52,21,612) of ? 10/- each at the terms and conditions

Terms and Rights attached to Equity Shares

The Company has only one class of Equity Share having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the equity shareholders will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportionate to the number of equity shares held by the shareholders.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6911.984	6657.984	6657.984
2] Share Application Money		399.750	625.496	0.000
3] Reserves & Surplus		12477.373	10142.659	10365.001
4] (Accumulated Losses)		0.000	0.000	(506.457)
NETWORTH		19789.107	17426.139	16516.528
LOAN FUNDS
1] Secured Loans		18554.516	13614.897	11310.759
2] Unsecured Loans		8695.164	3332.618	1988.395
TOTAL BORROWING		27249.680	16947.515	13299.154
DEFERRED TAX LIABILITIES		624.633	79.420	0.000
TOTAL		47663.420	34453.074	29815.682
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22041.232	12249.948	10482.814
Capital work-in-progress		5653.586	14736.479	13883.821
INVESTMENT		295.026	419.652	267.569
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3391.019	2453.479	1330.232
	Sundry Debtors	9094.209	2049.933	70.180
	Cash & Bank Balances	2782.525	4256.257	6400.908
	Other Current Assets	6775.995	4344.717	3484.350
	Loans & Advances	9555.882	4730.450	2971.683
Total Current Assets		31599.630	17834.836	14257.353
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4309.062	1613.421	1563.767
	Current Liabilities	7366.858	8274.352	6026.070
	Provisions	250.134	900.068	1486.038
Total Current Liabilities		11926.054	10787.841	9075.875
Net Current Assets		19673.576	7046.995	5181.478
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		47663.420	34453.074	29815.682

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	18670.647	8599.341	6293.826
		Other Income	244.024	635.569	675.066
		TOTAL (A)	18914.671	9234.910	6968.892
Less	EXPENSES
		Cost of Materials Consumed	4987.797	2828.320
		Purchase of Traded Goods	5166.225	2575.880
		Changes in Inventories of Work-in Progress and Scrap	11.302	223.506	6360.049
		Employee Benefits Expenses	457.809	273.993
		Other Expenses	3928.808	1172.928
		TOTAL (B)	14551.941	7074.627	6360.049
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4362.730	2160.283	608.843
Less	FINANCIAL EXPENSES (D)		2576.818	1193.438	729.992
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1785.912	966.845	(121.149)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1058.916	487.326	365.473
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		726.996	479.519	(486.622)
Less	TAX (H)		54.838	80.559	1.583
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		185.158	398.960	(488.205)
Add	PRIOR PERIOD ITEMS (NET)		0.000	0.000	(20.735)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(107.497)	(506.457)	2.483
	BALANCE CARRIED TO THE B/S		NA	(107.497)	(506.457)
	IMPORTS
		Raw Materials	4416.794	3922.810	660.192
		Stores & Spares	81.054	30.156	25.516
		Capital Goods	40.499	94.156	86.067
	TOTAL IMPORTS		4538.347	4047.122	771.775
	Earnings / (Loss) Per Share (Rs.)		0.27	0.60	(0.82)

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	5724.170	6660.200	6210.000
Total Expenditure	4509.560	5262.450	4798.900
PBIDT (Excl OI)	1214.610	1397.750	1411.000
Other Income	90.550	40.080	88.800
Operating Profit	1305.160	1437.830	1499.800
Interest	977.100	1011.570	1036.300
Exceptional Items	0.0000	0.000	0.000
PBDT	328.060	426.260	463.500
Depreciation	300.480	301.340	314.700
Profit Before Tax	27.580	124.920	148.800
Tax	7.380	40.850	48.300
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	20.200	84.070	100.500
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	20.200	84.070	100.500

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.98	4.32	(7.00)
Net Profit Margin (PBT/Sales)	(%)	3.89	5.58	(7.73)
Return on Total Assets (PBT/Total Assets}	(%)	1.36	1.59	(1.97)
Return on Investment (ROI) (PBT/Networth)		0.04	0.03	(0.02)
Debt Equity Ratio (Total Debt /Networth)		1.38	0.97	0.81
Current Ratio (Current Asset/Current Liability)		2.65	1.65	1.57

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particular	31.03.2012	31.03.2011	31.03.2010
Dues to Micro, Small and Medium Enterprises	87.537	45.866	1563.767
Dues to Others	4221.525	1567.555
	4309.062	1613.421	1563.767

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	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	No

NOTE:

The Registered Office of the company was 904, Shukan Tower, Near Judges Bunglow, police Chowky, Bodakdev, Ahmedabad – 380 009, Gujarat change to present registered address w.e.f 27.10.2006.

UNSECURED LOANS

Rs. In Millions

Particular	31.03.2012	31.03.2011
Short Term Loans from
- Banks	8695.164	3332.618
Total	8695.164	3332.618

OPERATIONS

During the year, the Company has recorded total income of Rs.18914.600 Millions, showing an increase of 104.82% as compared to the income of Rs.9234.900 Millions during the previous financial year. The Company earned profit before tax of Rs.727.000 Millions, as against profit of Rs.479.600 Millions for previous year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is engaged in the business of building assets in various segments including (i) Defence Shipbuilding; (ii) Offshore Oil and Gas Exploration and Production Assets Construction; (iii) Commercial Shipbuilding and Repairs; (iv) Defence hardware and services for the Indian Armed Forces; and (v) Heavy Engineering.

(I) DEFENCE SHIPBUILDING

Geopolitical equations are rapidly changing globally, with the emergence of new powers, upheavals in many strategic regions and economic crisis in the developed world. India's size, strategic location, trade interests and dynamic global security environment underpin the critical need to bolster the country's defence preparedness and infrastructure to safeguard its security interests.

In the Union Budget 2012-13, the Finance Minister allocated Rs.1934070.000 Millions for defence spending, representing 1.9% of Gross Domestic Product (GDP) of the country. The defence outlay represents growth of 13.15% over the previous year's revised outlay. Defence sector capital expenditure allocation of close to Rs.800000.000 Millions includes Rs.247660.000 Millions towards naval capital expenditure which is 72% higher compared to last year with the focus being on modernization of fleet of the Indian Navy.

The substantial increase in allocation to the naval capital expenditure is based on the realization that India has to modernize its fleet to face the challenges thrown by other countries seeking to establish presence in the Indian Ocean, a region of strategic importance connecting the developed West with the emerging East, in order to further its emergence as a key player in global trade.

The present fleet of the Indian Navy consists of 132 ships including submarines, to which about 49 ships will be added in the next five years. According to reports available in public domain, the Indian Navy requires over 100 ships of different varieties including aircraft carriers, submarines, destroyers, patrol vessels etc. over the next two decades. In continuation to the Defence Procurement Procedure (DPP) 2011 promoting 'Buy Indian, Make Indian' and public private partnerships for development of indigenous defence industry, the Ministry of Defence, Government of India, issued guidelines for establishing Joint Venture Companies by Defence Public Sector Undertakings (DPSUs) with the objective to achieve substantive self-reliance in the defence sector and to augment national effort of producing state-of-the-art defence products with globally competitive prices and timelines. Now, it is up to the private sector players, looking to establish their presence in this space, to demonstrate their technologies, capabilities and infrastructure developed by them.

The Company is at the forefront of this opportunity having become the first private sector company which has been selected by Mazagon Dock Limited, the premier defence shipyard of the Ministry of Defence, as its partner for formation of the joint venture to build warships for the Indian Navy. The Company has been awarded with the contract for construction of 5 warships viz. Naval Offshore Patrol Vessels worth Rs.29750.000 Millions by the Indian Navy and is in the process of executing the same.

(II) OFFSHORE OIL AND GAS EXPLORATION AND PRODUCTION ASSETS CONSTRUCTION

Demand for crude oil in the world is expected to rise to 95 million barrels per day by 2015 and 118 million barrels per day by 2030, compared to the current level of 87 million barrels per day. Demand will be driven by emerging markets on the back of surge in development and industrialization resulting in significant increase in per capita consumption of petroleum products.

India consumes about 3.1 million barrels per day and is expected to consume 4.3 million barrels per day by 2030 at a compounded annual growth rate of 1.8%. Currently, India is the fourth largest oil consumer in the world and the fifth largest importer of crude oil and is expected to surpass Japan and Russia to become the world's third largest consumer by 2030. India only produces about 20% of its total crude oil requirement. To meet demand supply gap, the Government of India has taken various initiatives and has enacted various policies such as New Exploration Licensing Policy (NELP). Government of India under the 9th round of NELP offered 33 oil and gas exploration blocks. With increased oil and gas exploration activity in India post NELP particularly in deep water blocks, there is increased demand for advanced offshore structures, subsea architecture and advanced drilling technologies leading to higher efficiency and reduced production costs. The Company is well-equipped to fabricate offshore structures covering mobile offshore drilling units (MODU), mobile offshore production units (MOPU), jackets, offshore platforms, topside modules, floating production, storage and offloading units (FPSO), floating storage and regasification vessels (FSRU) etc. required to meet the growing demand for crude oil including oil equivalent products and natural gas.

Indian players are also set to benefit from the huge replacement demand which is expected to come over the next few years. Globally, 68% of rigs, 73% of anchor handling tug, supply vessels (AHTSVs) and 62% of the platform supply vessels (PSVs) are more than 20 years old. This will translate into huge potential to service and revamp/ upgrade large number of these assets by Indian private shipyards.

(III) COMMERCIAL SHIPBUILDING AND REPAIRS

The commercial shipbuilding industry globally is dependent on several key drivers including world GDP which drives economic activity; the break down in geographical barriers driving trade; increasing demand for crude oil and oil tankers for its transportation; and steel production driven by importers like China, the United States and South East Asia which accounts for 42% of global dry bulk trade.

The outlook for the global shipbuilding industry remains subdued with global shipyard capacity close to its historical high and the global order book almost half the recent peak and expected to remain so in the near future. Several shipping segments are seeing pressure on freight rates, declining asset values and the risk of increasing overcapacity in the near term. In this scenario, demand is focused on new, quality, fuel-efficient, competitively priced and eco-friendly vessels.

The ship building industry in India is estimated to touch Rs.92000.000 Millions by 2015 from Rs.73100.000 Millions at present, growing at a compounded rate of about 8% as highlighted by the industry body ASSOCHAM. The global shipbuilding industry currently stands at Rs.7.3 lacs Crore.

The Indian Commercial shipbuilding depends on 8 Public Sector and 20 Private Sector shipyards in the country. India has a competitive advantage from its global peers like low labor cost, strong domestic demand, technically skilled qualified labor force, established steel and manufacturing industry and coastline as long as 7,517 kms. strategic location close to the Indian Ocean, Arabian Sea and the Bay of Bengal making it easily accessible from three directions. India offers endless opportunity in the commercial shipbuilding and repair industry. India's ship building industry currently is about 1.5% of the global ship building market and the Union Shipping Minister is targeting a global market share of 5% by 2017.

In India, major shipyards carry out both repair and ship building activities. Unlike the shipbuilding industry, which experiences cyclical downturns and upturns, the repair industry is evergreen. Yards generally have a continuous and consistent flow of business and revenue generation from repairs business.

With the growing fear of pollution and stricter norms and regulations, repairing services are in demand. Indian shipyards have the competitive advantages including proximity to international shipping routes.

(IV) DEFENCE HARDWARE AND SERVICES FOR THE INDIAN ARMED FORCES

The Government of India is making all efforts to strengthen its defence requirements be it the army, navy or air force. The entire defence gamut is the key focus for India right now and the Company is well-equipped to seize all the opportunities offered in this space.

(V) HEAVY ENGINEERING

The heavy engineering sector in India has been growing tremendously on account of the Government's increased thrust on infrastructure development. Continuous investment in sectors such as power, oil and gas exploration and production, etc. coupled with robust industrial activity is expected to drive the growth momentum in the heavy engineering industry in the near term.

OUTLOOK

The Company completed the first full year of operations in 2011-12, during which it successfully delivered two Panamax vessels, the largest bulk carriers of its class built in India till date, to its international customers.

Going forward, in fiscal year 2012-13 they expect to accelerate the process of production. The Company has the capability to develop high quality and state-of-the-art ships for the military as well as for commercial demand at its global standard facility. The Company has commenced the construction of second dry dock. Their infrastructure and world class fabrication facilities along with technological tie-ups provide testament of the confidence shown in them by their partners. They are confident of utilizing their strengths viz. high quality, high technology ship building processes and systems as a platform for enhanced growth.

The Company is gaining leadership in its space and with all differentiating factors in their favor, they are optimistic that they will capitalize on opportunities provided by the defence, offshore, oil and gas assets space and witness sustained growth and profitability going forward.

CONTINGENT LIABILITY:

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
a) Guarantees given by Company’s Bankers
i) Refund Bank Guarantees given to customers (Net of liabilities accounted for)	1481.531	1753.984
ii) Other Bank Guarantees (Bank Guarantees are provided under Contractual/ Legal obligations.)	2284.257	906.585
b) Demands not acknowledged as Debts
i) Income Tax (The Company has deposited under protest Rs.32.151 Millions (Previous Year Rs.28.867 Millions) out of total demand)	111.681	39.732
ii) Service Tax and Excise Duty (Relates to disallowance of CENVAT Credit taken by the Company)	7.183	5.845
iii) Other Claims (Relates to claims of suppliers and demand raised by vendor for Service Tax etc.)	22.035	19.210
c) Letters of Credit opened in favour of suppliers (Cash Flow is expected on receipt of materials from Suppliers)	130.897	2338.851

Fixed Assets:-

· Plant and Machinery

· Building

· Furniture and Fixtures

· Computers

· Office Furniture and Equipments

· Vehicles

· Leasehold Land

· Software

WEBSITE DETAILS

PRESS RELEASES

PIPAVAV DEFENCE OFFERS 26% STAKE SALE

Mumbai February 1, 2013

Corporate majors at home and abroad interested due to order book, facility talks on for reported Rs 84000.000 Millions deal

Pipavav Defence and Offshore Engineering Company, the country’s largest defence ship building company in the private sector, founded by Nikhil Gandhi, has offered to sell 26 per cent of its equity. A group of corporate majors is interested.

The talks are in an advanced stage and Pipavav’s board would soon meet to decide on the buyer, based on the offers received, a source involved with the negotiations said. The promoters were seeking close to Rs 84000.000 Millions, or Rs 120 a share, the sources said. The stock closed at Rs 87.85 today, up 1.9 per cent.

The investor would get up to three board seats, including the position of co-chairman, and have a say in day-to-day management. According to the deal structure, the Gandhis would first dilute stake from 45 per cent to 35 per cent; then, new shares would be issued to the strategic investor via preferential allotment. The investor would also make an open offer to the other shareholders, in line with takeover law. The exercise would cost the strategic investor about Rs 22000.000 Millions. The investment would be utilised to build new facility for the army projects bagged by the firm.

Many top companies, in India and abroad, are interested in Pipavav Defence due to its healthy order book and its operating facility. For them, the investment makes sense as Pipavav has already set up India’s first modular yard with the second largest dry dock in the world; it can dock ships of any size, including the largest aircraft carriers. It has also got the first licence in the country to build warships and a contract worth Rs 30000.000 Millions to build five gunboats.

The majors are also attracted by the Government of India’s plans to offer $250 billion (Rs 13.3 lakh crore( worth of contracts over the next five years in defence hardware. Mahindra recently announced it would get into the defence sector with Rafael. Last year, Reliance Industries had announced a joint venture with Dassault Aviation of France to get into the defence sector. This week, Larsen and Toubro inaugurated its own shipyard in Tamil Nadu.

Indian companies are going in a big way into the defence sector after the latest defence procurement policy to encourage sourcing from home.

By bringing in a strategic partner with 26 per cent stake, the Gandhis are expecting to infuse more cash into the company. Apart from its orders from the navy and from other countries, it has also signed a joint venture with Mazagon Dock Limited to compete for Indian defence ship orders. Most shipyards in India are owned by the government and are unable to meet the huge demand of ships. Pipavav Shipyard was set up to cater to the demand.

PIPAVAV DEFENCE IN TALKS WITH FRANCE'S DCNS FOR TIE-UP

New Delhi April 17, 2013

Industry sources said that talks between the two firms are on for quite some time for forging the partnership

Pipavav Defence and Offshore Engineering Company Limited (PDOECL) is in "advanced stages" of discussions with DCNS for a strategic Partnership, which may include selling some stake to the French defence major.

"We are at an advanced stage of discussion with the French company, DCNS, a world renowned warship and submarine builder, for a strategic partnership that will allow for the transfer of state-of-the-art technologies to PDOECL.

"An investment from DCNS in our company is also on the cards," Pipavav's Chairman Nikhil Gandhi said in a communique to the shareholders. He did not elaborate further.

Last year in June, Pipavav had said that it has decided to establish the strategic partnership with DCNS for bringing in its technologies, methods and skills. DCNS product portfolio includes Scorpene submarine.

Industry sources said that talks between the two firms are on for quite some time for forging the partnership, which include negotiations on Pipavav offloading some of its equity to DCNS.

However, both the firms are yet to finalise the size of the stake sale and its route, they said.

The stake sale's route could be through issuing new equity to DCNS, thereby diluting the present share capital of Pipavav, they added.

This could not be confirmed from the company. An e-mail and SMS sent to Nikhil Gandhi on the issue remained unanswered.

Last year, Pipavav had forged a similar strategic partnership with Swedish defence major SAAB and had announced to allot about 3.5% stake to SAAB for 250 million Swedish Kronors (Rs 2000.000 Millions).

Pipavav promoters hold 45.03% stake in the company, while LIC is the second largest shareholder in Pipavav with 8.34% stake.

The Nikhil Gandhi-promoted firm is one of the leading domestic private companies in the Indian defence sector, particularly in the naval space. It has aggressive plans to expand its businesses in several areas of the sector.

Last year, the company had signed a joint venture with Mazagaon Dock - leading defence PSU - to build surface warships for the Indian Navy.

PIPAVAV, AIRBUS TO START MRO UNIT THE PARENT COMPANY OF AIRBUS, WILL HOLD 26-49% EQUITY IN THE JOINT VENTURE WHILE PIPAVAV WILL HOLD A 51% STAKE

SEPTEMBER 28, 2011

Mumbai: Pipavav Defence and Offshore Engineering Company Limited and Airbus SAS have agreed to jointly start an aircraft maintenance, repair and overhaul (MRO) unit in India.

EADS NV, the parent company of Airbus, will hold 26-49% equity in the joint venture, Pipavav said in a filing to stock exchanges on Wednesday. Pipavav will hold a 51% stake.

“The first-phase MRO facilities and associated infrastructure are likely to cost $100 million (Rs. 4890.000 Millions),” Pipavav said in its filing. “The MRO facilities and associated infrastructure will be used for civilian and military applications.”

Mint could not immediately contact EADS for comment. A person familiar with the matter said the MRO facility will also have spare parts and logistics units.

“The name, necessary approvals, agreements and equity structure would be finalized in the next three months. The company would also induct a technical partner to run the aircraft repair facility,” this person said, adding the deal will help Pipavav, until recently known as Pipavav Shipyard, position itself in the aerospace sector.

Five places are shortlisted for the MRO unit—Cochin International Airport in Kerala, old Bangalore international airport, a small airport site in Maharashtra and two other sites near private airports, he added, requesting anonymity.

Pipavav shares rose 2.7% to end trading at Rs. 79.90 on BSE on Wednesday. The Sensex shed 0.47%.

As India’s aviation sector grows, the MRO market is expected to more than double revenue to $1.06 billion by 2015 from $499 million in 2009, according to a 2009 report by business research firm Frost and Sullivan. MRO service requirements in the country are expected to grow annually at a compounded rate of 13.5% in the same period.

“Labour costs in India are around $30-35 per man hour, compared with $55-60 in South-East Asia and the Middle East and even higher in the US and Europe,” Frost and Sullivan analysts Chethan Kambi and Arun Narayanan wrote in the report. “Therefore, India has potential to service not just Indian aircraft but also those from neighbouring regions.”

India’s MRO sector has been gathering pace in recent years.

In November, the aeronautical division of Europe’s largest airline, Air France-KLM group, entered India’s aircraft component repair market by acquiring a 26% stake in Mumbai-based MRO company Max AeroSpace and Aviation Limited for an undisclosed amount.

Mumbai-based Air Works Engineering, which began repairing aircraft 59 years ago, started an MRO facility in Hosur, Tamil Nadu, and acquired European aircraft refurbishing and painting firm Air Livery for an undisclosed amount in 2010. Engineering firm Punj Lloyd Limited and US-based private equity firm Global Technology Investment each hold a 33% stake in Air Works.

Airport developer GMR Group is in the process of starting an MRO facility with Malaysian Aerospace Engineering Sdn Bhd at the Hyderabad airport, and Air India is building an MRO with Boeing Company

PANEL FOR OPENING UP SUBMARINE CONSTRUCTION TO PRIVATE SECTOR

MAY 23, 2011

The committee has said that with private sector setting up capacity in the country there is no need to import submarines in future thus opening up the Rs 500000.000 Millions markets for Indian companies like L and T and Pipavav Shipyard. India at present has 14 submarines in its fleet.

L and T, which is constructing a shipyard in Ennore in Tamil Nadu, and Pipavav Shipyard, which has an existing shipyard in Gujarat, have been recommended by the panel to build submarines in partnership with government owned companies as joint venture projects. With this, Pipavav and L and T will join a select group of four companies that have the capability to submarines. "The report has been submitted to the government last week and an announcement is expected soon," said a source with direct knowledge of the panel's report.

"If this space is opened up, it will be a big opportunity for private players. And there is no doubt that Indian private players are fully equipped to manufacture submarines' Nikhil Gandhi. CMD of Pipavav told ET NOW.

It was in 1999, the defence ministry had prepared a 30-year plan to acquire 24 submarines. As per the plan, first six submarines were to be delivered in 2005 and to be completed by 2015. The rest of the 18 Submarines were to be delivered between 2015 and 2029.

The government gave the orders for the first six submarines to Mazgaon Docks in collaboration with French Ministry of Defence Yard. But due to lack infrastructure, the project has met with serious delay. In fact, all the submarines will now be delivered only by 2022 instead of 2015.

Indian private players have been continuosly exploring opportunities to enter various segments of the Indian defence and aerospace sector. Earlier this year Tata group formed a joint venture with Lockheed Martin to make aerostructures for Lockheed's C-130 aircraft in India. L and T also has a joint venture with Cassidian, a division of European Aerospace And Defence (EADS) Group, for defence electronics. It has also worked in close cooperation with the Defence Research and Development Organisation (DRDO) on several projects.The Mahindra group also has a joint venture with UK-based BAE Systems for production of manufacture mine-proof vehicles.

The Indian defence sector would need investments of $200 bn to $300 bn in military and aerospace according to the defence ministry.The defence ministry is looking at signing offset contracts of more than Rs 100000.000 Millions in the 11th plan ending this year. Twelve offset contracts valuing Rs 99430.000 Millions have been signed with Indian private industries and defence PSU so far.

.

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.55.52
UK Pound	1	Rs.84.09
Euro	1	Rs.71.67

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	Yes
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.