MIRA INFORM REPORT

Report Date :

23.11.2013

IDENTIFICATION DETAILS

Name :	ANIK INDUSTRIES LIMITED (w.e.f 19.10.2006)
Formerly Known As :	MADHYA PRADESH GLYCHEM INDUSTRIES LIMITED
Registered Office :	610, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.02.1976
Com. Reg. No.:	11-136836
Capital Investment / Paid-up Capital :	Rs. 277.534 Millions
CIN No.: [Company Identification No.]	L24118MH1976PLC136836
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20568C
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Processing of Milk and Milk Products and also Trading of Agri- Commodities and coal and Wind power Generation.
No. of Employees :	Information Decline by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 9500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the turnover and profitability of the company during current year however, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payment s are reported to be usually correct and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

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	CARE
Rating	Long term bank facilities: (BBB)
Rating Explanation	Moderate degree of safety. It carry moderate credit risk
Date	13.03.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: (A3+)
Rating Explanation	Moderate degree of safety. It carry might credit risk
Date	13.03.2013

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 DECLINED

Management non-cooperative

Tel. No.: 91-731-4018009

LOCATIONS

Registered Office :	610, Tulsiani Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22824851/ 53/ 57/ 59/ 63 / 22886871
Fax No.:	91-22-22042865
E-Mail :	myglychem@ruchigroup.com mpglychem@ruchigroup.com shailesh_kumath@ruchigroup.com investors@anikgroup.com anik@sarthakglobal.com
Website :	http://www.anikgroup.com
Corporate Office:	2/1 South Tikoganj, Behind High Court, Indore- 452001, Madhya Pradesh, India
Tel No.:	91-731-4018009 / 10
Fax No.:	91-731-2513285
Dairy Unit 1 :	Unit I-Village Bilawali, Dewas Maksi Road, Dewas, Madhya Pradesh, India
Dairy Unit 2 :	Unit II-Village Bilawali, Dewas Maksi Road, Dewas, Madhya Pradesh, India
Dairy Unit 3 :	Dairy Complex, Kasganj Road, Etah, Uttar Pradesh, India
Dairy Unit 4 :	Govindpura Industrial Area, Bhopal, Madhya Pradesh, India
Wind Power Unit 1:	Located at: Village Gorera, Dist. Jaisalmer, Rajasthan, India Village Nagda, Dist. Dewas, Madhya Pradesh, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. Kailash Chandra Shahra
Designation :	Chairman
Name :	Mr. Suresh Chandra Shahra
Designation :	Managing Director
Name :	Mr. Manish Shahra
Designation :	Jointly Managing Director
Name :	Mr. Ashok Trivedi
Designation :	Whole Time Director
Name :	Mr. Ashok Mehta
Designation :	Independent Director
Name :	Mr. Kamal Kumar Gupta
Designation :	Independent Director
Name :	Mr. Vijay Rathi
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Shailesh Kumath
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4481327	16.15
Bodies Corporate	9498509	34.22
Sub Total	13979836	50.37
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13979836	50.37
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	19500	0.07
Foreign Institutional Investors	1190158	4.29
Sub Total	1209658	4.36
(2) Non-Institutions
Bodies Corporate	4326835	15.59
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2822323	10.17
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	624517	2.25
Any Others (Specify)	4790317	17.26
Non Resident Indians	94999	0.34
Overseas Corporate Bodies	4523914	16.30
Clearing Members	2575	0.01
Hindu Undivided Families	133269	0.48
Foreign Nationals	35560	0.13
Sub Total	12563992	45.27
Total Public shareholding (B)	13773650	49.63
Total (A)+(B)	27753486	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)	27753486	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		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)
1	Manish Shahra	4,97,324	1.79	1.79
2	Manish Shahra HUF	68,005	0.25	0.25
3	Nitesh Shahra	4,98,172	1.79	1.79
4	Mriduladevi Shahra	7,44,294	2.68	2.68
5	Suresh Chandra Shahra	4,45,350	1.60	1.60
6	Abha Devi Shahra	2,000	0.01	0.01
7	Usha Devi Shahra	50,000	0.18	0.18
8	Umesh Shahra	40,200	0.14	0.14
9	Savitri Devi Shahra	2,100	0.01	0.01
10	Neeta Shahra	32,100	0.12	0.12
11	Dinesh Shahra	7,000	0.03	0.03
12	Dinesh Shahra HUF	30,000	0.11	0.11
13	Santosh Shahra HUF	65,100	0.23	0.23
14	Vishesh Shahra	27,000	0.10	0.10
15	Kailash Shahra	20,100	0.07	0.07
16	Kailash Shahra HUF	15,000	0.05	0.05
17	Suresh Chandra Shahra HUF	5,46,438	1.97	1.97
18	Bhavna Goel	10,000	0.04	0.04
19	Shewta Shahra	7,02,320	2.53	2.53
20	Madhuri Shahra	6,64,294	2.39	2.39
21	Neha Shahra	14,530	0.05	0.05
22	Mahakosh Papers Private Limited	4,39,100	1.58	1.58
23	Ruchi Acroni Industries Limited	3,17,600	1.14	1.14
24	APL International Private Limited	12,86,400	4.64	4.64
25	Arandi Investment Private Limited	34,500	0.12	0.12
26	Shahra Brothers Private Limited	2,55,000	0.92	0.92
27	Mahakosh Holding Private Limited	1,21,550	0.44	0.44
28	Ruchi Soya Industires Limited	4,00,000	1.44	1.44
29	National Steel and Agro Industies Limited	1,00,000	0.36	0.36
30	Promise Securities Private Limited	16,09,125	5.80	5.80
31	Mahakosh Amusement Private Limited	1,00,000	0.36	0.36
32	Vishal Warehousing Private Limited	2,50,000	0.90	0.90
33	Shahra Securities Private Limited	5,64,722	2.03	2.03
34	Samradhi Real Estate Private Limited	5,00,200	1.80	1.80
35	Deepti Properties Private Limited	4,00,000	1.44	1.44
36	Suman Agritech Private Limited	16,58,754	5.98	5.98
37	Neha Resorts and Hotels Private Limited	14,61,448	5.27	5.27
38	Neeta Shahra (Trustee)	100	0.00	0.00
39	Anik Infotech Private Limited	10	0.00	0.00
	Total	1,39,79,836	50.37	50.37

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	Lotus Global Investments Limited	1041116	3.75	3.75
2	Sarthak Global Limited	568950	2.05	2.05
3	Anandmangal Investments and Fin Private Limited	354400	1.28	1.28
4	Bumkin Finance and Investment Private Limited	972201	3.50	3.50
5	Sarthak Industries Limited	590620	2.13	2.13
6	Mardale Investments Co Limited	1125520	4.06	4.06
7	Top Commodities Commission Agents Limited	500376	1.80	1.80
8	Clemfield Industries Limited	2898018	10.44	10.44
9	Jayati Finance and Investment Private Limited	604065	2.18	2.18
10	Teej Impex Private Limited	343632	1.24	1.24
	Total	8998898	32.42	32.42

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	Clemfield Industries Limited	2898018	10.44	10.44
	Total	2898018	10.44	10.44

BUSINESS DETAILS

Line of Business :	Processing of Milk and Milk Products and also Trading of Agri- Commodities and coal and Wind power Generation.
Brand Names :	ANIK and SOURABH

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed capacity
Milk Processing	KLs	2,91,000
Wind Power Generation	MWH	1.85

The licensed capacity is not given as licensing has been abolished

Particulars	Unit	Actual Production
Ghee	MTs	5,271.69
Pasteurized Milk	KLs	46,671.38
Soya Iso Prolet	MTs	8.63
Milk Powder	MTs	6,145.57
Wind Power Generation	KWH	27,75,416.00

(i) Milk powder excludes Nil MT (Previous Year 20.746 MT) production done on job work for others.

GENERAL INFORMATION

No. of Employees :

Information Decline by the management

Bankers :

· Dena Bank

· Punjab National Bank

· Central Bank of India

· Oriental Bank of Commerce

· Bank of India

· State Bank of Travancore

· Allahabad Bank

· IDBI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Term loans from banks	190.105	314.326
Other loans from banks	0.000	0.692
Less :Amount disclosed under the head Current Maturities of Long Term Debt	(92.631)	(119.413)
Short term borrowings
Working capital loan from banks	856.319	1326.398
Total	953.793	1522.003
Note: Working Capital Loans from Consortium Banks are secured by : a) Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movables, both present and future, lying or stored in factory premises, at Village Bilawali, Dist. Dewas (M.P.) , Kasganj Road, Etah(U.P.), Govindpura , Bhopal units or whereever else, the same may be held or kept. b) Further secured by Equitable Mortgage created over the Land situated at village Bilawali Dist .Dewas (M.P.), Kasganj Road, Etah (U.P.) with all buildings, super structures, plant and Machinery installed thereon except specific equipment, Plant and Machinery charged to Dena Bank for securing Term Loan. c) Personal guarantee of two Directors.

Banking Relations :	--
Auditors :
Name :	Ashok Khasgiwala and Company Chartered Accountants
Associate/ Joint Venture :	Mahakosh Property Developers (a firm where company is a partner)
Other parties where Key Management Personnel and/or their relatives have significant influence:	v Shahra Securities Private Limited v Mahadeo Shahra Sukrat Trust v Mahakosh Family Trust v Suman Agritech Limited

CAPITAL STRUCTURE

As on: 31.03.2013

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.10/- each	Rs. 450.000 Millions
500000	Non-cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 50.000 Millions
	Total		Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
27753486	Equity Shares	Rs.10/- each	Rs. 277.534 Millions

The reconciliation of the number of shares outstanding is set out below:

Particulars	31.03.2013
	No. of Shares	Rs. In millions
Equity Shares at the beginning of the year	2,77,53,486	277.535
Add: Shares issued during the year	--	--
Equity Shares at the year	2,77,53,486	277.535

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

The details of Shareholders holding more than 5% shares in the company:

Name of the Shareholders	31.03.2013
	No. of shares held	%Held
Equity Shares
Clemfield Industries Limited	28,98,018	10.44
Suman Agritech Private Limited	16,58,754	5.98
Promise Securities Private Limited	16,09,125	5.80
Neha Resorts and Hotels Private Limited	14,61,448	5.27

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	277.534	277.534	277.535
(b) Reserves & Surplus	2119.834	2013.191	1880.753
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2397.368	2290.725	2158.288
(3) Non-Current Liabilities
(a) long-term borrowings	97.473	195.605	285.305
(b) Deferred tax liabilities (Net)	102.398	98.706	92.778
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	8.429	7.951	8.301
Total Non-current Liabilities (3)	208.300	302.262	386.384
(4) Current Liabilities
(a) Short term borrowings	1918.452	2990.041	2156.781
(b) Trade payables	3636.051	4117.726	3328.437
(c) Other current liabilities	213.764	268.530	253.243
(d) Short-term provisions	3.979	4.255	1.250
Total Current Liabilities (4)	5772.246	7380.552	5739.711
TOTAL	8377.914	9973.539	8284.383
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1468.948	1163.022	1190.514
(ii) Intangible Assets	0.029	3.892	7.756
(iii) Capital work-in-progress	25.507	18.230	17.965
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.016	0.708	0.891
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	59.560	51.699	21.164
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1555.060	1237.551	1238.290
(2) Current assets
(a) Current investments	128.877	246.128	142.355
(b) Inventories	1339.080	1414.330	1580.694
(c) Trade receivables	3601.341	4436.647	3124.784
(d) Cash and cash equivalents	730.356	1624.806	1194.462
(e) Short-term loans and advances	757.482	775.838	816.046
(f) Other current assets	265.718	238.239	187.752
Total Current Assets	6822.854	8735.988	7046.093
TOTAL	8377.914	9973.539	8284.383

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations (Net)	12640.047	16076.963	12766.246
		Other Income	401.236	509.979	316.761
		TOTAL (A)	13041.283	16586.942	13083.007
Less	EXPENSES
		Cost of materials consumed	3209.959	3392.950	2680.819
		Purchases of Stock-in-Trade	8253.226	11382.394	9344.402
		Changes in inventories of finished goods, work-in-progress and Stock- in-Trade	94.452	162.038	(249.914)
		Employee benefits expense	122.356	111.051	101.308
		Other expenses	698.461	742.231	639.606
		TOTAL (B)	12378.454	15790.664	12516.221
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		662.829	796.278	566.786
Less	FINANCIAL EXPENSES (D)		474.810	578.724	354.426
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		188.019	217.554	212.360
Less/ Add	DEPRECIATION/ AMORTISATION (F)		57.184	56.409	49.577
	PROFIT BEFORE TAX (E-F) (G)		130.835	161.145	162.783
Less	TAX (H)		24.193	28.707	61.863
	PROFIT AFTER TAX (G-H) (I)		106.642	132.438	100.920
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1202.221	1069.783	968.863
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Dividend	0.000	0.000	0.000
		Tax on Dividend	0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		1308.863	1202.221	1069.783
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB basis	63.185	54.994	172.398
		Merchandise trade on FOB basis	829.541	837.263	283.281
	TOTAL EARNINGS		892.726	892.257	455.679
	IMPORTS
		Purchase of Raw Materials & Finished Goods	2373.902	4387.126	4119.151
		Merchandise Trade	810.746	820.527	275.454
	TOTAL IMPORTS		3184.648	5207.653	4394.605
	Earnings Per Share (Rs.)		3.84	4.77	3.64

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.81	0.80	0.77
Net Profit Margin (PBT/Sales)	(%)	1.03	1.00	1.28
Return on Total Assets (PBT/Total Assets}	(%)	1.57	1.61	1.97
Return on Investment (ROI) (PBT/Networth)		0.06	0.08	0.08
Debt Equity Ratio (Total Debt/Networth)		0.84	1.40	1.13
Current Ratio (Current Asset/Current Liability)		1.18	1.18	1.22

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Short term borrowings
From banks	500.000	400.000
Buyers credit from banks	562.132	1263.643
Total	1062.132	1663.643

CASE DETAILS

Stamp No.:-

SL/894/2012

Filing Date:-

02/04/2012

Reg. No.:-

S/1179/2012

Reg. Date:-

07/05/2012

Petitioner:-	Twenty First Century Wire Rods Limited	Respondent:-	ANIK INDUSTRIES Ltimited
Petn.Adv.:-	Ajit J. Shobhawat (O)	Resp.Adv.:-	A.M. Vernkar (O)
District:-	MUMBAI

Bench:-	Single
Status:-	Transferred	Disp.Type:-	Suits for goods sold and Delivered
Transfer Date:	03/10/2012	Remark:	Transferred to city Civil Court

Act :-

Code of Civil Procedure 1908

PRESS RELEASE

ANIK IND'S 5-BLN-RUPEE FERRO ALLOY, POWER UNIT COMPLETION IN 2.5 YR

MUMBAI - Anik Industries Ltd is setting up an integrated ferro alloy and power unit at Jhabua in Madhya Pradesh at a total investment of 5 bln rupees, and it is likely to be completed in two-and-a-half-years, company officials said at a press meet today.  

The company will execute the project, which marks its foray into ferro alloy-manufacturing, in two phases. The Indore-headquartered company has diversified business interests, primarily in dairy products and mining of minerals.    

In the first phase, the company would invest 1.5 bln rupees to set up 20 MW of power generation capacity and 36,000 tn per year of ferro alloy capacity by the end of 2010-11 (Apr-Mar), said Executive Director Deepakk Goyal.    

"In the first phase, our equity contribution would be 400.000-450.000 millions
(400-450 mln rupees), which we have raised through warrants issue to promoter group. We have almost tied up the debt and the project would be financially closed by March," Goyal said.

In the second phase, the company would set up 70 MW of power generation capacity and a manufacturing capacity of 100,000 tn per year for ferro alloy and a 500,000 tn per year beneficiation unit.     Of the total 90 MW of power generation capacity being set up in Madhya Pradesh, the company would use 70% for captive use, while the balance would be sold through power supply pacts.     "Approximately 65% of the required manganese ore for the ferro alloy unit shall be sourced from the captive mines," Goyal said.     The company has concession for mining manganese ore in Madhya Pradesh and Maharashtra, he said.

MILK PROCESSING

Anik Industries is planning to expand its milk processing capacity to 1 mln ltr per day by March 2011 from 600,000 ltr per day now.    

"Our expenditure for expansion of milk output capacity is 30 crore (300 mln) rupees in the current financial year. In the next two months, our processing capacity is expected to increase to 800,000 tn," Goyal said.

He also said the company is planning to launch "a number of new dairy products" in the next six months. However, he did not give any specifications. Anik Industries sells milk and a variety of milk and dairy products under the brand name of Anik and Sourabh.     "Currently, our presence is mainly in north and east India. We are planning to expand to western and southern India as well. We are planning to build a milk plant in south India on the Karnataka-Tamil Nadu border, which will cater to the preferences of the local people there," Goyal said.

On product pricing policy, he said, the company will hike prices of its products in tandem with the rise in input cost.

Today, shares of Anik Industries ended flat at 62.25 rupees on the National Stock Exchange, from the previous close. 

OPERATIONS

During the year, Company achieved a turnover of Rs. 13041.200 millions, which is decreased by around 21% as compared to previous year. Operating profit has decreased by around 13% and stood at Rs. 188.000 millions and net profit also decreased by around 19% and stood at Rs. 106.600 millions during the year. The same is due to lower turnover in trading business to avoid unforeseen losses on account of high volatility in commodity prices and high upward fluctuation in US Dollar against Indian Rupee. However on the manufacturing front the turnover increased by more than 16% and stood at Rs. 7519.900 millions, but manufacturing profit has gone down by 23% due to increased cost of raw milk.

Management of the Company under the direction of the Board of Director is continued in achieving the targets of cutting down in the cost of operations and getting efficiency in this area by using better alternated resources/means

BUSINESS EXPANSION AND DIVERSIFICATION

DAIRY BUSINESS

During the year, the Company has increased its dairy business turnover by about 16% as compared to previous year. The Company has started concentrating more on supplying hygienic quality liquid milk in pouches and in line with the same in 2012 it has successfully launched liquid milk in tetra pack with longer shelf life. Similarly to cater Central India with hygienic packed milk, Company has started its operation in Raipur, (Chhattisgarh). To cover more part of the urban area of North India, it has proposed to set up a new dairy plant at Etah (UP) for supply of pouch milk and better quality milk power. The said plant is expected to come in operation by April, 2014.

In addition to this, the Company is enthusiastically keeping a watch on the southern and the eastern regions of India for setting up few more dairy plants to cover these regions where they are sure that the products of the Company shall be taken hand to hand.

MINING BUSINESS

On the Front of recently diversified business of mining, the year again remained productive as few of mines allotted to the Company are marching ahead towards getting necessary approvals/permissions coming closure to start commercial production in the short span of time.

Further, sincere efforts of the Company are continue to set up mineral based Industry in Madhya Pradesh to use explored minerals from its own mines in future. Better profitability and turnover is expected from these activities in future.

REAL ESTATE BUSINESS

The integrated township project 'Active Acres' at Kolkata launched few years back by M/s. Mahakosh Property Developers, a partnership firm wherein the Company is partner with major stake, is continuously getting good response from all segments of public even in the phase of recession period in the Real Estate Sector, where, out of completed 4 towers and 1 tower under construction, booking of about 75% of the residential units has been done and more than 100 families have started living in township, which is a good sign of the Company's reputation and sustainability which will result in good profits in the years to come.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRYSTRUCTURE AND DEVELOPMENTS

With mass population and powerful purchasing power, India is amongst one of the fastest growing consumer market and expected to be the strongest economy in the world in coming future. However, worldwide slow down has also affected Indian economy resulting in growth rate of 5% in last financial year i.e. slowest in the last decade.

The Company is primarily engaged in the business of processing of Milk and Milk Products, Trading of Agri- Commodities and Coal and Wind power Generation.

India has been ranked first amongst the world's milk producing countries, which accounts for around 20 per cent of global milk production, most of which is consumed domestically, which is also the fastest growing market for milk and milk products with about 10% growth rate annually. India, where consumption of dairy products is rapidly increasing, is well poised for higher growth in the coming years in dairy sector. As per Assocham "milk production is likely to reach about 190 million tonnes in 2015 at the growth rate of 10 per cent per annum"

In terms of wind power installed capacity, India is amongst top five countries in the world. The unexploited resource has the potential to sustain the growth of wind energy in future. The renewable energy in India has already a significant share of India's installed power capacity and it is expected, that this share will keep on growing.

OPPORTUNITIES AND THREATS

DAIRY BUSINESS:

India has retained the leadership position in Milk production in the world which is estimated at around 135 million tonnes during 2012-13. In India, milk is treated as the powerhouse of natural nutrients which are necessary to sustain a healthy mind and body. It is an important source of protein for a sizable portion of India's large vegetarian population. The importance of dairy enterprises in the national economy can be gauged from the fact that the value of output from milk group is highest amongst all the agricultural commodities. Since most of share of milk production is with unorganized sector, therefore increasing hygienic and quality awareness offers great opportunities to entrepreneur worldwide, who wish to capitalize on with hygienic and quality conditions for the world's largest and fastest growing market for milk and milk products. The Indian Dairy Industry is rapidly growing and trying to keep the pace with global growth rate. In India potential is there for expansion in smaller towns.

Indian Dairy Industry is in unorganized form where quality of milk and animal are poor with yield per cow less than that of the foreign producer who are on the verge of entering in Indian dairy market and will soon have access to India with favorable environment of globalization. Poor quality prohibits Indian milk from being exported. Indian dairy industry will see tough competition from exporters. Technological up gradation with aim to provide nutrition, health and high quality are key factors for success in dairy business. In years to come greater demand for unadulterated pasteurized liquid milk in poly pouches, high quality nutrition products will be the thrust area for growth.

The Government of India has permitted for exporting of Skimmed Milk Powder (SMP), therefore, export prospects of these products as well as WMP, Soya Protein Isolate and Concentrate and Casein are very bright. This will help Company to get noted in other countries.

WIND POWER:

With the encouraging policy for renewable energy, this sector has shown great growth pace which helped India to become the new "Wind Superpower". The Company has Two Wind Power projects at Nagda Hills, Dewas (MP) and Jaisalmer (Rajasthan) are successfully generating energy and have shown the ability of Company to diversify in Non-Conventional Energy Sector.

OTHERS:

In current year, monsoon remained favorable, the bumper production of all agri commodities is expected that will help the market with regular availability of material and established market prices. The symptoms of global commodity business are favorable for coming period and suitable steps of Government and Reserve Bank of India will also keep lower movement in exchange rates. The Company proposes to continue to recognize the full potential in agri commodities and coal in the coming period.

The future performance of the Company would depend to a large extent on its ability to successfully run its existing and forthcoming plants, successful diversification, introduction of new products, emerging market of dairy products and other commodities on opportunity basis. They are hopeful that through the combination of market developments and expansion activity, there will be healthy growth over the next few years.

The Company has already performed well in the recently diversified mining business as few of the mines allotted to the Company are marching ahead towards getting necessary permissions/ approvals coming closure to start commercial production in short span of time. Further, sincere efforts of the Company are continue to set up mineral based industry in Madhya Pradesh to use explored minerals from own mines in future.

On the front of Real Estate business, the integrated township project 'Active Acres' at Kolkata launched few years back by M/s. Mahakosh Property Developers, a partnership firm, wherein the Company is a partner with major stake, is continuously getting good response from all segments of public even in the phase of recession period in the Real Estate Sector, where, out of completed 4 towers and 1 tower under construction, booking of about 75% of the residential units has been done and more than 100 families have started living in township, which is a good sign of the Company's reputation and sustainability which will result in good profits in the years to come. The Company is also having keen interest in entering into joint venture with the other real estate Company to take its major hold.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company has identified three business segments in line with the accounting standard on segment reporting. These are:

Dairy Products - Milk, Ghee, Milk Powder and other Dairy products.

Wind Power Unit - Wind Power Generation

Other - Trading of Coal, Agri Commodities, Edible Oil etc.

The segment wise performance in detail is given in Note No. 36 to the audited accounts of the Company as available in this annual report.

OUTLOOK

With increasing demand of dairy products, the Company has successfully set up a new dairy plant at Dewas last year. To capture additional market share and to fulfill coming demand of dairy products, the Company is also setting up a new dairy plant at Etah (U.P.) where an old dairy plant already exists. During the year, the Company has started its operation in Raipur (Chhattisgarh) and endeavors are also continuing to enter into remaining parts of Central, Western and Southern parts of India also. They have started concentrating more on supplying hygienic quality liquid milk in pouches and in line with Company have successfully launched liquid milk in tetra pack with longer shelf life and hopeful that this will further strengthen their position in the market.

Further, the Wind Power Projects of the Company are generating electricity satisfactorily. Electricity produced in Rajasthan Plant is being sold to Rajasthan Electricity Board (RSEB) while in Madhya Pradesh, they have captive consumption in their plant and remaining electricity is sold to Madhya Pradesh Electricity Board. They see ecological power generation as the sunrise industry of tomorrow and have positioned ourselves to save the nature and to reap the reward for their stakeholders.

With their strong focus on core business activities and their competitive position, better performance is expected in the years to come.

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013
a) Outstanding Bank Guarantees	42.418
b) Income tax / Sales tax/ Excise duty demand disputed in appeal [Net of advance paid Rs. 27.486 millions against disputed demand]	59.291
c) Estimated liability of Custom Duty, which may arise if export obligation/ commitment is not fulfilled	13.559
d) Letter of Credit opened on behalf of others	Nil
e) Claims against the company not acknowledged as debt	54.048
f) Bills Discounting with Banks	24.371

FIXED ASSETS

v Tangible Assets

· Land - Free Hold

· Land – Leasehold

· Buildings

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Vehicles

v Intangible Assets

· Trade Mark

· Softwares

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. 63.02
UK Pound	1	Rs. 102.04
Euro	1	Rs. 84.91

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.