MIRA INFORM REPORT

Report Date :

11.11.2013

IDENTIFICATION DETAILS

Name :	GKC PROJECTS LIMITED (w.e.f. 13.03.2008)
Formerly Known As :	GKC PROJECTS PRIVATE LIMITED (w.e.f. 16.02.2008) GOKULKRISHNA CONSTRUCTIONS PRIVATE LIMITED
Registered Office :	Sy. No.9 (P) HITEC City, CII Green Building Lane, Kondapur, Hyderabad - 500084, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.04.2004
Com. Reg. No.:	01-043015
Capital Investment / Paid-up Capital :	Rs. 250.001 Millions
CIN No.: [Company Identification No.]	U45200AP2004PLC043015
TAN No.: [Tax Deduction & Collection Account No.]	HYDG01914D
PAN No.: [Permanent Account No.]	AACCG1395F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of infrastructure development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) and Lump Sum Turnkey (LSTK) facilities in various infrastructure Projects like irrigation and water supply, roads, bridges, industrial structures, power infra, mining etc.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 11000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears sharp dip in profit and sales turnover of the company during the financial year 2013. However, the ratings reflect GKC’s healthy order book, which is well-diversified across sectors such as highways, irrigation, water supply, and civil construction. Furthermore, it also takes into consideration the company’s strong project execution capabilities. Trade relations are fair. Business is active. Payment terms are regular. The company can be considered for business dealing at usual trade terms and conditions. Note: Financials of 2013 (Profit) are taken from Indirect Source (CRISIL).

NOTES :

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

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

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

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

INDIAN ECONOMIC OVERVIEW

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

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

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “BBB+”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	10.09.2013

Rating Agency Name	CRISIL
Rating	Short term rating: “A2”
Rating Explanation	Strong degree of safety and low credit risk.
Date	10.09.2013

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 PARTED BY

Name :	Mr. Katershwar Rao
Designation :	AGM Finance
Contact No.:	91-8008277160
Date :	08.11.2013

LOCATIONS

Registered Office :	Sy. No.9 (P) HITEC City, CII Green Building Lane, Kondapur, Hyderabad - 500084, Andhra Pradesh, India
Tel. No.:	91-40-44554545
Fax No.:	91-40-44554555
E-Mail :	sriniwasarun.y@gkcpl.com gkcpl2004@yahoo.com
Website :	www.gkcpl.com
Area:	25000 sq.ft.
Location:	Rented

DIRECTORS

As on 21.06.2013

Name :

Mr. Kolli Venkata Raja Sekhar

Designation :

Managing Director

Address :

Villa No.178, Indu Fortune Fields, KPHB Phase XIII, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

30.08.1968

Qualification :

B.Com

Experience :

21 Years

Date of Appointment :

01.04.2008

DIN No.:

01234924

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Managing director	01/04/2008	05/04/2004	-	Active	NO
2	U40109AP2008PTC062176	GKC POWER PRIVATE LIMITED	Director	12/12/2008	12/12/2008	-	Active	NO
3	U45200AP2010PTC067769	GKC INFRA HOLDINGS PRIVATE LIMITED	Director	31/03/2010	31/03/2010	-	Active	NO
4	U45203GJ2010PTC059262	HYDERABAD-YADGIRI TOLLWAY PRIVATE LIMITED	Director	18/06/2011	23/08/2010	-	Active	NO
5	U40108AP2012PTC081657	BIDAR SOLAR POWER PRIVATE LIMITED	Director	26/06/2012	26/06/2012	-	Active	NO
6	U45209AP2012PTC081923	SINDHANUR GANGAVATHI TOLLWAY PRIVATE LIMITED	Director	11/07/2012	11/07/2012	-	Active	NO

Name :

Mr. Ram Koteshwar Vemuri

Designation :

Whole-Time Director

Address :

Villa No.70, Indu Fortune Fields, KPHB Phase XIII, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

26.04.1972

Qualification :

BA

Experience :

16 Years

Date of Appointment :

01.04.2008

PAN No.:

AHMPK7596G

DIN No.:

01974950

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Whole-time director	01/04/2008	02/03/2007	-	Active	NO
2	U40109AP2008PTC062176	GKC POWER PRIVATE LIMITED	Director	12/12/2008	12/12/2008	-	Active	NO
3	U45200AP2010PTC067769	GKC INFRA HOLDINGS PRIVATE LIMITED	Director	31/03/2010	31/03/2010	-	Active	NO
4	U40108AP2012PTC081657	BIDAR SOLAR POWER PRIVATE LIMITED	Director	26/06/2012	26/06/2012	-	Active	NO
5	U45209AP2012PTC081923	SINDHANUR GANGAVATHI TOLLWAY PRIVATE LIMITED	Director	11/07/2012	11/07/2012	-	Active	NO

Name :

Mr. Anupama Kolli

Designation :

Whole-Time Director

Address :

Villa No.178, Indu Fortune Fields, KPHB Phase XIII, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

29.12.1976

Qualification :

B.SC

Experience :

7 Years

Date of Appointment :

01.04.2008

PAN No.:

AAVPV4873H

DIN No.:

01811482

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Whole-time director	01/04/2008	05/04/2004	-	Active	NO

Name :

Mr. Sitarama Murthy Mandavilli

Designation :

Director

Address :

Flat No.401, Siva Sai Apartments, Road No.9, West Marredpally, Secunderabad – 500026, Andhra Pradesh, India

Date of Birth/Age :

19.12.1943

Qualification :

MCS, CAIIB

Date of Appointment :

01.04.2008

DIN No.:

01694236

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Whole-time director	01/04/2008	05/04/2004	-	Active	NO

Name :

Mr. Ramaraghavulu Pujari

Designation :

Director

Address :

8-2-601, 1E, Road No.10, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

01.07.1954

Qualification :

MCOM, LLB, CAIIB,

PHD

Date of Appointment :

27.05.2009

DIN No.:

00018994

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45200AP1991PTC013453	ROSHNI DEVELOPERS PRIVATE LIMITED	Director	26/07/2005	26/07/2005	03/07/2007	Active	NO
2	U45200AP2001PLC038175	INDU PROJECTS LIMITED	Whole-time director	27/09/2005	27/09/2005	03/07/2007	Active	NO
3	U45200AP2006PTC048968	INDU TECHZONE PRIVATE LIMITED	Director	01/02/2006	01/02/2006	03/07/2007	Active	NO
4	U00095PN2006PTC022236	INDU CONCEPT INFRA VENTURES PRIVATE LIMITED	Director	28/03/2006	28/03/2006	03/07/2007	Active	NO
5	U70102AP2006PTC049678	INDU FINELANDS PRIVATE LIMITED	Director	31/03/2006	31/03/2006	03/07/2007	Active	NO
6	U45200TN2006PTC085149	INDU NAVAYUGA INFRA PROJECTS PRIVATE LIMITED	Director	04/04/2006	04/04/2006	03/07/2007	Active	NO
7	U45200AP2006PTC049849	INDU ROYAL HOMES PRIVATE LIMITED	Director	13/04/2006	13/04/2006	03/07/2007	Active	NO
8	U45200AP2006PTC049848	INDU EASTERN PROVINCE PROJECTS PRIVATE LIMITED	Director	13/04/2006	13/04/2006	03/07/2007	Active	NO
9	U45200AP1997PLC028322	TOTEM INFRASTRUCTURE LIMITED	Whole-time director	08/12/2008	08/12/2008	31/01/2010	Active	NO
10	U29309AP2000PLC035239	SERVOMAX INDIA LIMITED	Director	25/09/2009	02/03/2009	22/09/2013	Active	NO
11	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Director	27/06/2009	27/05/2009	-	Active	NO
12	U74999AP2009PLC064124	TOTEM INTERNATIONAL LIMITED	Director	24/06/2009	24/06/2009	07/09/2009	Active	NO
13	U40106AP2007PTC055617	TF SOLARPOWER PRIVATE LIMITED	Director	31/05/2010	14/04/2010	22/06/2012	Active	NO
14	U40109AP2008PTC060822	HYPERION GREEN ENERGY INDIA PRIVATE LIMITED	Director	15/09/2010	15/09/2010	-	Active	NO
15	U72200AP2010PTC070850	VELOCITY NETWORKS PRIVATE LIMITED	Director	21/04/2011	21/04/2011	-	Active	NO
16	L25209AP1987PLC007550	RAJ PACKAGING INDUSTRIES LIMITED	Director	29/09/2012	07/11/2011	-	Active	NO
17	U92400AP2010PTC071272	CELEBRITY CRICKET LEAGUE PRIVATE LIMITED	Nominee director	30/11/2011	30/11/2011	-	Active	NO
18	U70102AP2007PTC056004	JANAPRIYA TOWNSHIPS PRIVATE LIMITED	Alternate director	23/04/2012	23/04/2012	11/07/2012	Active	NO
19	U70200KA2012PTC066780	QUAIATTINI PROPERTIES PRIVATE LIMITED	Director	16/11/2012	16/11/2012	-	Active	NO
20	U70100KA2012PTC066778	ZERKALO PROPERTIES PRIVATE LIMITED	Director	16/11/2012	16/11/2012	-	Active	NO
21	U70102KA2012PTC066872	SYNERGIO PROJECTS PRIVATE LIMITED	Director	23/11/2012	23/11/2012	-	Active	NO

Name :

Mrs. Deepa Valangaiman Sankaran

Designation :

Director

Address :

No.1, Prestige Eldorado, 16, Edward Road, Bangalore – 560001, Karnataka, India

Date of Birth/Age :

17.11.1968

Qualification :

B. Com, PG

Date of Appointment :

31.05.2010

DIN No.:

01803254

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899HR1994PLC040956	ESCORTS CONSTRUCTION EQUIPMENT LIMITED	Director	28/09/2007	10/05/2007	16/04/2010	Amalgamated	NO
2	U40101KA1986PLC007404	BHORUKA POWER CORPORATION LIMITED	Director	29/09/2008	16/02/2008	08/05/2013	Active	NO
3	U67190MH2008FTC179996	DARBY ASIA INVESTORS (INDIA) PRIVATE LIMITED	Director	12/03/2008	12/03/2008	-	Active	NO
4	L72200RJ2000PLC016272	CAREER POINT LIMITED	Nominee director	27/07/2009	27/07/2009	01/01/2010	Active	NO
5	U45200AP2004PLC043015	GKC PROJECTS LIMITED	Director	31/05/2010	23/12/2009	-	Active	NO
6	U72900KL1990PTC005620	SFO TECHNOLOGIES PRIVATE LIMITED	Nominee director	11/05/2011	11/05/2011	-	Active	NO
7	U72400TN2004PTC054226	Newgen Knowledge Works Private Limited	Nominee director	30/05/2011	30/05/2011	-	Active	NO
8	U18101MH2002PTC134409	KIMAYA FASHIONS PRIVATE LIMITED	Director	22/07/2011	22/07/2011	-	Active	NO
9	U24232MP2002PLC015293	SYMBIOTEC PHARMALAB LIMITED	Director	15/09/2011	15/09/2011	-	Active	NO
10	U32109KL2007PTC021022	SFO TECHNOLOGIES DIGITAL PRIVATE LIMITED	Nominee director	29/06/2012	29/06/2012	-	Amalgamated	NO
11	U72200KA2012PTC066617	INFAINDIA INFOSERVICES PRIVATE LIMITED	Director	07/11/2012	07/11/2012	31/01/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Sriniwas Arun Yayavaram
Designation :	Secretary
Address :	Q.No. 2112D, Bhel Township, Ramchandrapuram, Medak – 502032, Andhra Pradesh, India
Date of Birth/Age :	01.10.1977
Date of Appointment :	11.02.2008
PAN No. :	ABOPY3968J
Name :	Mr. Katershwar Rao
Designation :	AGM Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.06.2013

Names of Equity Shareholders	No. of Shares
K V Raja Sekhar	9265000
K Anupama	2250000
V Ram Koteshwar	3000000
V Vinod Kumar	202500
Amit Dinkar Kamat	37500
K Venkateswarlu	60000
A Susheela	50000
V Sreelakshmi	50000
Dr. R R Pujan	10000
M Sitarama Murty	5000
P Viswanadh	20000
K Nageswara Rao	20000
Y Sriniwas Arun	5000
K Narendra Babu	10000
N Ramakrishna	10000
M Sateesh	5000
Franklin Templeton Asset Management (India) Private Limited, India *	100
Total	15000100

*Consists of shares held by Franklin Templeton Asset Management (India) Private Limited (FTMIL) in it’s capacity as portfolio Manager of Franklin Templeton Private Equity Strategy (FTPES). These shares are acquired out of the funds collected by FTAMIL under FTPES from it’s clients.

Names of Preference Shareholders	No. of Shares
Franklin Templeton Asset Management (India) Private Limited, India **	9991684
K Anupama	8316
Total	10000000

**Consists of shares held by Franklin Templeton Asset Management (India) Private Limited (FTMIL) in it’s capacity as portfolio Manager of Franklin Templeton Private Equity Strategy (FTPES). These shares are acquired out of the funds collected by FTAMIL under FTPES from it’s clients.

As on 21.06.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others
Bodies corporate
Directors or relatives of Directors
Other top fifty shareholders
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of infrastructure development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) and Lump Sum Turnkey (LSTK) facilities in various infrastructure Projects like irrigation and water supply, roads, bridges, industrial structures, power infra, mining etc.

Products :

Item Code No. (ITC Code)	Product Description
001	Civil Construction

Imports :

Products :

Equipments

Countries :

Germany

Terms :

Purchasing :

Cash and Credit

GENERAL INFORMATION

Supplier :

Steel Authority of India

Customers :

Government Bodies and Semi Government Bodies

No. of Employees :

500 (Approximately)

Bankers :

· State Bank of India, Corporate Accounts Group, Ozone, 2nd Floor, # 6-3-669, Punjagutta Main Road, Hyderabad - 500082, Andhra Pradesh, India

3i Infotech Trusteeship Services Limited, 3rd to 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India

Ing Vysya Bank Limited, 1-7-1,T.Subbarami Reddy Complex, Sardar Patel Road, Secunderabad - 500003, Andhra Pradesh, India

Bank of Baroda, CFS Hyderabad Branch, 3-6-262/6, Tirumala Estates, 3rd Floor, Himayat Nagar, Hyderabad - 500029, Andhra Pradesh, India

Yes Bank Limited, 9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

Standard Chartered Bank, 6-3-1090, Raj Bhavan Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India

HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· IDBI Bank Limited, Chakala Road Branch, Mumbai, Maharashtra, India

ICICI Bank Limited, Begumpet Branch, Hyderabad, India

Facilities :

Total Facility: Fund Based – Rs. 4650.000 Millions

Non Fund Based – Rs. 18000.000 Millions

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans
Indian rupee loans from banks	241.069	255.833
Foreign currency loans from bank	369.613	176.576
Indian rupee loans from financial institutions	87.355	152.889
SHORT TERM BORROWINGS
From banks	3804.560	2296.700
Total	4502.597	2881.998

NOTE:

LONG TERM BORROWINGS

Term loan from baks and financial institutions (secured) consists of

a. Indian rupee loans from various banks carries interest @ 7% to 12% p.a. The loan is repayable in 35 equal monthly instalments (including interest). The loan is secured by hypothecation of earth moving equipment and vehicles and personal guarantee of managing director of the Company.

b. The Company has two foreign currency loans from bank carries interest rates @ LIBOR plus 2.50%p.a and LIBOR plus 2.75% p.a. The loan is repayable in 5 years with quarterly interest and half yearly principal repayment as per the terms of the agreement. The loan is secured by hypothecation of earth moving equipment and personal guarantee of managing director of the Company.

c. Indian rupee loans from various financial institutions carries interest @ 4% to 11% p.a. The loan is repayable in 35 equal monthly instalments (including interest). The loan is secured by hypothecation of earth moving equipment and vehicles and personal guarantee of managing director of the Company.

SHORT TERM BORROWINGS

a. Working capital loans from various banks under multiple banking arrangement:

Working capital loans to the extent of Rs. 3771.955 Millions (March 31, 2011: Rs. 2212.831 Millions) availed from various banks under multiple banking arrangement are secured by:

i. Pari passu first charge by way of hypothecation of entire book debts, inventory and other current assets, both present and future of the company excluding those in relation to which specific project finance has been availed;

ii. Pari passu first charge by way of hypothecation of moveable fixed assets of the Company (other than those purchased under equipment finance from banks/ Financial Institutions); and

iii. Collateral security by way of equitable mortgage of properties of Mr. K V Raja Sekhar, Managing Director and

Mrs. K Anupama, Executive Director

b. Project specific working capital loan from banks:

Project specific working capital loan to the extent of Rs. 32.604 Millions (March 31, 2011: Rs. 83.869 Millions) availed is secured by:

i. Exclusive charge by way of hypothecation of book debts, inventory and other current assets, both present and future of the specific projects; and

ii. Personal guarantee of Mr. K V Raja Sekhar, Managing Director, Mr. V Ram Koteshwar, Executive Director and

Mrs. K Anupama, Executive Director.

c. Short-term borrowings from financial institutions (unsecured) is personally guaranteed by Mr. K V Raja Sekhar, Managing Director.

Banking Relations :	--
Financial Institution :	Bajaj Auto Finance Limited, Akurdi Pune-, Pune - 411035, Maharashtra, India
Auditors :
Name :	S.R. Batliboi and associates Chartered Accountants
Address :	Oval Office18, Labs Centre, Hitec City, Madhapur, Hyderabad – 500018, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Name :	Manohar Chowdhry and Associates
Address :	204-A, Concourse Complex, Opposite Lal Bungalow, Green Lans Road, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAAFM9052A
Subsidiary company :	· GKC Infra Holdings Private Limited, India CIN No.: U45200AP2010PTC067769 GKC Projects LLC, Oman GKC Projects (Zambia) Limited
Joint venture :	· SEL-GKC JV SMC - GKC
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Hyderabad-Yadgiri Tollway Private Limited, India CIN No.: U45203GJ2010PTC059262

CAPITAL STRUCTURE

As on 21.06.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15010000	Equity Shares	Rs.10/- each	Rs.150.100 Millions
10000000	Preference Shares	Rs.10/- each	Rs.100.000 Millions
	Total		Rs.250.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000100	Equity Shares	Rs.10/- each	Rs.150.001 Millions
10000000	Preference Shares	Rs.10/- each	Rs.100.000 Millions
	Total		Rs.250.001 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	250.001	250.001
(b) Reserves & Surplus	2502.592	1952.055
(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)	2752.593	2202.056
(3) Non-Current Liabilities
(a) long-term borrowings	698.037	585.298
(b) Deferred tax liabilities (Net)	60.986	44.313
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.983	16.675
Total Non-current Liabilities (3)	761.006	646.286
(4) Current Liabilities
(a) Short term borrowings	3844.560	2296.700
(b) Trade payables	1302.220	885.245
(c) Other current liabilities	3130.655	1918.744
(d) Short-term provisions	35.734	30.283
Total Current Liabilities (4)	8313.169	5130.972
TOTAL	11826.768	7979.314
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2365.250	1715.027
(ii) Intangible Assets	18.706	1.938
(iii) Capital work-in-progress	22.094	19.055
(iv) Intangible assets under development	0.000	7.258
(b) Non-current Investments	99.292	24.100
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	290.780	226.020
(e) Other Non-current assets	189.502	99.657
Total Non-Current Assets	2985.624	2093.055
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	872.251	626.530
(c) Trade receivables	2814.934	1188.023
(d) Cash and cash equivalents	373.100	303.789
(e) Short-term loans and advances	503.136	377.011
(f) Other current assets	4277.723	3390.906
Total Current Assets	8841.144	5886.259
TOTAL	11826.768	7979.314

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		245.001
2] Share Application Money		0.000
3] Reserves & Surplus		1403.341
4] (Accumulated Losses)		0.000
NETWORTH		1648.342
LOAN FUNDS
1] Secured Loans		1633.894
2] Unsecured Loans		0.000
TOTAL BORROWING		1633.894
DEFERRED TAX LIABILITIES		26.683
TOTAL		3308.919
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1050.473
Capital work-in-progress		34.735
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	446.257
	Sundry Debtors	821.087
	Cash & Bank Balances	330.091
	Other Current Assets	2408.699
	Loans & Advances	430.195
Total Current Assets		4436.329
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	551.279
	Other Current Liabilities	1611.776
	Provisions	49.563
Total Current Liabilities		2212.618
Net Current Assets		2223.711
MISCELLANEOUS EXPENSES		0.000
TOTAL		3308.919

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	12398.151	9102.110	7931.757
		Other Income	82.248	44.748	21.430
		TOTAL (A)	12480.399	9146.858	7953.187
Less	EXPENSES
		Cost of materials consumed	4312.906	3140.452
		Employee benefit expense	501.035	358.704
		Other expenses	5885.680	4219.184
		TOTAL (B)	10699.621	7718.340	6909.206
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1780.778	1428.518	1043.981
Less	FINANCIAL EXPENSES (D)		653.365	371.135	225.979
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1127.413	1057.383	818.002
Less/ Add	DEPRECIATION/ AMORTISATION (F)		310.349	202.763	86.314
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		817.064	854.620	731.688
Less	TAX (H)		272.231	330.906	284.032
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		544.833	523.714	447.656
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1452.052	928.338	560.682
	BALANCE CARRIED TO THE B/S		1996.885	1452.052	928.338
	IMPORTS
		Stores & Spares	0.000	5.442	0.000
		Capital Goods	0.000	424.893	1.902
	TOTAL IMPORTS		0.000	430.335	1.902
	Earnings / (Loss) Per Share (Rs.)
	Basic		36.32	34.91	30.00
	Diluted		30.89	30.23	26.00

Particulars	31.03.2013
Sales Turnover (Approximately)	10940.000

Expected Sales (2013-2014) : Rs. 12000.000 Millions

Reason for Decreasing Turnover: From last two year there is lot of competition in infrastructure industry so orders are coming less that is a reason of decrease in turnover.

The above information has been parted by Mr. Katershwar Rao (AGM Finance).

Particulars	31.03.2013
Net Profit/ (Loss)	260.000

Note: Financial of 2013 [Profit/(Loss)] are taken from indirect source (CRISIL).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.37	5.73	5.63
Net Profit Margin (PBT/Sales)	(%)	6.59	9.39	9.22
Return on Total Assets (PBT/Total Assets}	(%)	6.98	10.78	13.34
Return on Investment (ROI) (PBT/Networth)		0.30	0.39	0.44
Debt Equity Ratio (Total Debt/Networth)		1.65	1.31	0.99
Current Ratio (Current Asset/Current Liability)		1.06	1.15	2.01

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four years	Yes
12]	Profitability for last four years	Yes
13]	Reasons for variation <> 20%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10391215	28/11/2012	16,716,971.00	AXIS BANK LIMITED	5-2-183/184,ASC CENTRE, III FLOOR, RP ROAD, HYDERABAD - 500003, ANDHRA PRADESH, INDIA	B63842173
2	10348321	06/04/2012	72,729,565.00	MAGMA FINCORP LIMITED	MAGMA HOUSE, 24 PARK STREET, KOLKATA - 700016, WEST BENGAL, INDIA	B37156866
3	10348228	06/04/2012	86,590,584.00	MAGMA FINCORP LIMITED	MAGMA HOUSE, 24 PARK STREET, KOLKATA - 700016, WEST BENGAL, INDIA	B37154507
4	10349076	28/02/2012	8,434,576.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B37374295
5	10334772	17/01/2012	100,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B31765613
6	10324351	03/11/2011	17,576,157.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B28280451
7	10315530	22/10/2011	17,958,351.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B24475949
8	10311227	29/09/2011	5,872,800.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	B22958912
9	10311101	26/09/2011	7,818,238.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B22900963
10	10311876	03/09/2011	12,651,864.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B23179286
11	10301016	21/03/2012 *	225,000,000.00	STANDARD CHARTERED BANK	6-3-1090, RAJ BHAVAN ROAD, SOMAJIGUDA,, HYDERABAD - 500082, ANDHRA PRADESH, INDIA	B35621044
12	10308257	30/07/2011	7,358,850.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B21538509
13	10299084	14/07/2011	16,710,165.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B17632282
14	10299081	30/06/2011	24,795,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B17631755
15	10293275	27/05/2011	88,864,881.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B15378862
16	10291516	05/05/2011	14,532,800.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B14749303
17	10291084	03/05/2011	78,450,500.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B14579411
18	10269966	14/02/2011	11,341,419.00	BAJAJ FINANCE LIMITED	AKURDI PUNE, PUNE - 411035, MAHARASHTRA, INDIA	B07540412
19	10267397	31/12/2010	4,691,563.00	L & T FINANCE LIMITED	L & T HOUSE, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA , INDIA	B05877782
20	10267407	29/12/2010	6,102,000.00	L & T FINANCE LIMITED	L & T HOUSE, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA , INDIA	B05878244
21	10259855	14/12/2010	7,739,203.00	BAJAJ FINANCE LIMITED	AKURDI PUNE, PUNE - 411035, MAHARASHTRA, INDIA	B02790871
22	10245206	06/09/2010	60,091,075.00	L & T FINANCE LIMITED	L & T HOUSE, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA , INDIA	A96824909
23	10236698	22/07/2010	190,719,796.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A93698553
24	10232643	21/07/2010	18,955,181.00	BAJAJ AUTO FINANCE LTD	AKURDI PUNE, PUNE - 411035, MAHARASHTRA, INDIA	A90761925
25	10228374	13/10/2010 *	233,190,000.00	STANDARD CHARTERED BANK	6-3-1090, RAJ BHAVAN ROAD, SOMAJIGUDA,, HYDERABAD - 500082, ANDHRA PRADESH, INDIA	A95982914
26	10232328	13/07/2010	24,738,090.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A91159228
27	10214816	08/04/2010	12,332,046.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A84252600
28	10214813	07/04/2010	9,567,070.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A84252261
29	10214922	07/04/2010	20,226,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A84340116
30	10204488	01/03/2010	40,084,404.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA - 700046, WEST BENGAL, INDIA	A80280407
31	10204148	22/02/2010	40,044,975.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA - 700046, WEST BENGAL, INDIA	A80281819
32	10170057	23/02/2013 *	3,600,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B68990944
33	10089626	08/06/2013 *	18,262,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP, OZONE, 2ND FLOOR, # 6-3-669, PUNJAGUTTA MAIN ROAD, HYDERABAD - 500082, ANDHRA PRADESH, INDIA	B78847431

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
From financial institutions	40.000	0.000
Total	40.000	0.000

NOTE

The registered office of the company has been shifted from Flat No.503, Prashanti Ram Towers, Beside Sarathi Studio, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh, India to present address w.e.f. 13.09.2011.

GENERAL INFORMATION ABOUT COMPANY

The company is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in the business of infrastructure development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) and Lump Sum Turnkey (LSTK) facilities in various infrastructure Projects like irrigation and water supply, roads, bridges, industrial structures, power infra, mining etc. for Central / State Governments, other local bodies and private sector in the country.

PERFORMANCE REVIEW

The revenue for the year has gone up by 15.71 % to Rs. 9203.390 millions. PAT at 5.69% compares well with the industry given the order mix and verticals in which the Company operates.

MAJOR WORKS AWARDED DURING THE YEAR

The company has won major works independently as also in joint venture with leading industry players, which will pave way to strengthening Company’s credentials to bid for large projects independently in the near future.

· Execution of Omkareshwar Right Bank Lift Canal including its distribution network on Turn-key basis, main canal and V.R.B. at RD 51.281 KM Wasvi ?Sirsodia Road, operation and maintenance of complete commissioned system for one year from Narmada Valley Development Authority in the State of Madhya Pradesh for Rs. 5199.000 millions in Joint Venture with Sadbhav Engineering Limited, Ahmedabad. GKC?sparticipation in the Joint Venture is 60%.

· Execution of Omkareshwar Right Bank Lift Canal including its distribution network on Turn-key basis, including main flow canal, operation and maintenance of complete commissioned system for one year from Narmada Valley Development Authority in the State of Madhya Pradesh for Rs. 3493.000 millions in Joint Venture with Sadbhav Engineering Limited, Ahmedabad. GKC’s participation in the Joint Venture is 40%.

· EPC contract for construction of Radhanpur sub Branch Canal, Manpura Sub Branch Canal, distributaries and minors of Radhanpur Branch canal from Sardar Sarovar Narmada Nigam Limited in the State of Gujarat for Rs. 2361.98 millions. GKC’s participation in the Joint Venture is 48%.

· Gobindpur-Jamtara (Jamtara Bypass) - Package 1, length 80.63 km from Project Road Construction Department, Ranchi in the State of Jharkhand for Rs. 2299.130 millions in Joint Venture with Sadbhav Engineering Limited, Ahmedabad. GKC?s participation in the Joint Venture is 50%.

· Blast hole drilling, controlled blasting with shock tube initiation (Nonels), excavation, loading, transportation, dumping, spreading and levelingetc. of 436.50 LBCM over burden at Manuguru OC II Extension (Phase II) Project from Singareni Collieries Company Limited in the State of Andhra Pradesh for Rs. 1900 millions in Joint Venture with Sadbhav Engineering Limited, Ahmedabad. GKC’s participation in the Joint Venture is 49%.

· Construction of Water Supply Project and distribution network (five different packages) from Gujarat Water Supply and Sewerage Board in the State of Gujarat for a total value of Rs. 1577.470 millions.

· Construction of canal earthwork, lining, structures and service roads for distributaries and minors of Vallabhipur Branch canal from Sardar Sarovar Narmada Nigam Limited in the State of Gujarat for Rs. 1401.810 millions.

· Providing Sewerage system to erstwhile Byatarayanapura (Zone -2D) CMC Area under KMRP from Bangalore Water Supply and Sewerage Board in the State of Karnataka for Rs. 644.640 millions.

MANAGEMENT DISCUSSION and ANALYSIS

INDUSTRY OVERVIEW

Market opportunities in infrastructure domain in India continue to be very robust. The investment in the infrastructure sector during the Twelfth Plan would be of the order of Rs. 40,99,2400 millions (US $ 1,024.81 billion) of which at least 50 per cent is expected to come from the private sector. The Central Government has taken a number of policy initiatives to remove bottlenecks in the infrastructure development and attract private investment by ensuring that the projects embody value for money and investments result in world-class infrastructure.

Investment in infrastructure will be around 8.37 per cent of GDP in the base year of the Twelfth Plan. If GDP in the Twelfth Plan period grows at a rate above 9 per cent, it should be possible to increase the rate of investment in infrastructure to around 10.70 per cent in the terminal year of the Twelfth Plan period. Public sector investment in infrastructure would increase from Rs. 13112930.000 Millions in the Eleventh Plan to around Rs. 20496200.000 Millions in the Twelfth Plan at 2006-07 prices. This requires an annual increase of about 9.34 per cent in real terms.

ROADS

NATIONAL HIGHWAYS DEVELOPMENT PROJECT (NHDP)

About 25 per cent of the total length of National Highways (NHs) is single lane / intermediate lane, about 52 per cent is two lane standard and the balance 23 per cent is four lane standard or more. In 2010-11, the achievement under various phases of the NHDP up to November 2010 has been about 1,007 km and projects have been awarded for a total length of about 3,780 km.

Steps taken to expedite the progress of the NHDP include regular monitoring of contracts and progress reviews, appointment of senior officials by State Governments as nodal officers for resolving problems associated with implementation of the NHDP, setting up of a Committee of Secretaries under the Cabinet Secretary to address inter ministerial and Centre-State issues such as land acquisition, utility shifting, environment approvals and clearances of railway over-bridges (ROBs), simplification of the procedure of issue of land acquisition (LA) notifications, and posting of a Railways officer to the (NHAI) to coordinate with the Ministry of Railways in expediting the construction of ROBs. The NHAI has also set up Regional Offices headed by Chief General Managers for close monitoring of projects. So far 14 Regional Offices have been set up.

REVISED STRATEGY FOR IMPLEMENTATION OF NHDP

The NHAI formulated Work Plans (Work Plans I and II) for awarding of about 12,000 km each during the years 2009-10 and 2010-11. These plans lay down a specific time frame for various activities and are being monitored very closely at various levels. Under Work Plan I so far 73 projects of 6,426 km length have been awarded and bids for a further nine are at various stages. Under Work Plan II, one project of 170 km length was awarded and bids for five more projects are under various stages of process.

A committee under the Chairmanship of Shri B. K. Chaturvedi, Member Planning Commission, submitted a report containing the recommendations on the issues for key changes in the implementation framework and modified financing plan of the NHDP. The Government considered and accepted the recommendations contained in the report of the Committee in November 2009 with the proviso that the financing plan from 2010-11onwards would be considered by the Empowered Group of Ministers (EGoM) for further action.

The EGoM has since given in-principle approval for Work Plan II for 2010-11 for award of projects covering a length of about 12,000 km and also has approved additional budgetary support for the SARDP-NE and J&K projects. The EGoM has also approved the Work Plan for 2010-11 onwards with the stipulation that of the total NH length to be developed, broadly 60 per cent would be taken up on build, operate, and transfer (BOT) (Toll) basis, 25 per cent on BOT (Annuity) basis, and the remaining 15 per cent on engineering procurement contract (EPC) basis.

The NHAI is setting up 192 special land acquisition units (SLAUs) in various States for expediting the LA process, which is identified as a major bottleneck in the implementation of the projects, and 122 such units have already been set up. Besides, Chief Ministers have been requested to set up High Level Coordination Committees under Chief Secretaries to sort out issues involving coordination between departments. Most States have constituted these High Level Coordination Committees.

To expedite the progress of the NHDP, the MoRT&H has taken up implementation of about 4700 km under NHDP IV through State Public Works Departments (PWDs)/Corporations. It consists of implementation of about 1800 km under NHDP IVA (approved by the Government in July 2008) and about 2900 km under NHDP IVB (yet to be approved by the Government). Of the 1800 km under NHDP IVA taken up through State PWDs / Corporation, one project of 108 km has been awarded up to November 2010 and another of 670 km is at an advanced stage of award. Action has also been taken for project preparation work for about 2900 km under NHDP IVB.

FINANCING OF THE NHDP

A part of the fuel cess imposed on petrol and diesel is allocated to the NHAI to fund the implementation of the NHDP. The NHAI, whenever required, leverages the said cess flow to borrow additional funds from the debt market. Till date such borrowings have been limited to funds raised through 54 EC (capital gains exemption) bonds and the short-term overdraft facility.

The Government of India has also taken loans for financing various projects under the NHDP from the World Bank (US$ 1965 million), Asian Development Bank(ADB) (US$ 1605 million), and Japan Bank for International Cooperation (32,060 million yen) which are passed on to the NHAI partly in the form of grants and partly as loan.

ALLOCATIONS FOR INFRASTRUCTURE SECTOR - BUDGET 2011-12

The Union Budget 2011-12 proposed an allocation of Rs.2140000.000 Millions for infrastructure sector, which is 23.3% higher than current year. This amounts to 48.5% of the Gross Budgetary support to plan expenditure.

In order to give a boost to infrastructure development in railways, ports, housing and highways development, it has been proposed to allow tax-free bonds of Rs.300000.000 Millions to be issued by various government undertakings in the year 2011-12. This includes Indian Railway Finance Corporation Rs.100000.000 Millions; National Highway Authority of India Rs.100000.000 Millions; HUDCO Rs.50000.000 Millions and Ports Rs.50000.000 Millions.

India Infrastructure Finance Company Limited (IIFCL) is expected to achieve a cumulative disbursement of Rs.250000.000 Millions by March 31, 2012. Under the "take out financing scheme", seven projects have been sanctioned with a debt of Rs.1500 crore. Another Rs.50000.000 Millions will be sanctioned during 2011-12.

CHALLENGES AND OUTLOOK

The level of investment and capacity addition made in the key infrastructure sectors during the first three years of the Eleventh Plan vis a vis the financial and physical performance achieved in the Tenth Plan indicates an optimistic outlook for infrastructure sector as a whole. Yet, to accelerate the pace of infrastructure development further, certain challenges need to be overcome. The foremost is to make huge capacity addition in a time-bound manner while ensuring that projects embody value for money and investment results in world class infrastructure. Infrastructure should at the same time be affordable and sustainable.

The Planning Commission has carried out a preliminary assessment of the investment in infrastructure during the Twelfth Plan (2012-17). The projected investment requirement would be of the order of Rs. 40992400.000 Millions (about US$1025 billion). Thus financing infrastructure would be a big challenge in the coming years and to meet the challenge some innovative ideas and new models of financing would be required. Channeling domestic and foreign financial savings of this scale into infrastructure requires a judicious mix of policy interventions which balances the growth and stability objectives.

Apart from the need for substantial financial outlays for infrastructure, there are several non financial constraints that need to be addressed to avoid time and cost overruns. action is called for in addressing the problems of (i) tendering of unviable projects; (ii) bad quality of engineering and planning at DPR stage; (iii) lack of standardized and sub-optimal contracts; (iii) land acquisition delays and slow approval processes, especially environmental and forest clearances; (iv) insufficient optimization of procurement costs (of PSUs); (v) weak performance management in nodal agencies and PSUs and; (vi) inadequate availability of skilled and semi-skilled

manpower.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Bank guarantees issued by banks
on behalf of the company	5872.729	3779.443
on behalf of others	1789.999	1916.265
Arrears of preference dividend for 0.01% CCCPPS	0.030	0.020
Indirect taxes	181.153	0.000
Total	7843.911	5695.728

FIXED ASSETS

v Tangible assets

Land

Buildings

Temporary structures

Plant and machinery

Vehicles

Furniture and fixtures

Office equipment

Computers

Lease hold Improvements

v Intangible Assets

Computer Software

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 records 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 records 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.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.