MIRA INFORM REPORT

Report Date :

15.10.2013

IDENTIFICATION DETAILS

Name :	ARIHANT SUPERSTRUCTURES LIMITED
Registered Office :	302, Persipolis Building, Plot No.74, Sector-17, Vashi, Navi Mumbai – 400 703, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.03.1983
Com. Reg. No.:	11-029643
Capital Investment / Paid-up Capital :	Rs.411.600 millions
CIN No.: [Company Identification No.]	L51900MH1983PLC029643
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged primarily in the business of Real Estate Development, Trading in Real Estate and Construction Contracts.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2566000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company appear to be low. Also, there seems some dip in the profitability of the company during the current year. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Ashok
Designation :	Accounts Department
Contact No.:	91-22-41113333
Date :	14.10.2013

LOCATIONS

Registered Office :	302, Persipolis Building, Plot No.74, Sector-17, Vashi, Navi Mumbai – 400 703, Maharashtra, India
Tel. No.:	91-22-41113333
Fax No.:	91-22-27882946
E-Mail :	cs@asl.net.in Media: Promotions@asl.net.in Purchase: Purchase@asl.net.in Online Sales: Onlinesales@asl.net.in
Website :	http://www.asl.net.in
Location :	Owned

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Ashok B. Chhajer
Designation :	Chairman and Managing Director
Date of Birth/Age :	11.09.1969
Qualification :	B.Sc.
Expertise :	Real Estate Business
Date of Appointment :	15.01.2009
Directorship in other Companies :	· Arihant Dream House Private Limited · Arihant Universal Realty Private Limited · Adinath Realty Private Limited · Adeshwar Realty Private Limited · Abhinandan Agrofarms Private Limited · Arihant Paradise Realty Private Limited · Arihant Vatika Realty Private Limited · Arihant Abode Limited · Arihant Gruhnirman Private Limited · Arihant Technoinfra Private Limited · Arihant Aashiyana Private Limited · Arihant Anandi Realty Private Limited · Arihant Dwellcons Private Limited
Name :	Mr. Dinkar P. Samant
Designation :	Whole Time Executive Director
Name :	Mr. Nimish S. Shah
Designation :	Whole Time Director
Name :	Mr. Dinesh Chandra Babel
Designation :	Independent Director
Date of Birth/Age :	23.07.1943
Qualification :	Chartered Accountant and Bachelor of Law
Expertise :	Enriched experience in the field of Management Finance, Taxation, Audit and Costing
Date of Appointment :	23.04.2010
Directorship in other Companies :	· Capri Global Capital Limited · Kusam Electrical Industries Limited
Name :	Mr. Vinayak V. Nalavde
Designation :	Independent Director
Date of Birth/Age :	14.07.1943
Qualification :	Graduate of Commerce (B.Com) and passed the intermediate level of ICWA.
Expertise :	Finance, Accounts and Administration
Date of Appointment :	11.02.2012
Name :	Mr. Virendra Mital
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Naveen Ranka
Designation :	Compliance Officer
Audit Committee :	Mr. Dinesh Babel (Chairman/Member) Mr. Vinayak Nalavde (Member) Mr. Virendra Mital (Member) Mr. Dinkar Samant (Member)
Shareholders Grievance Committee :	Mr. Virendra Mital (Chairman/Member) Mr. Vinayak Nalavde (Member) Mr. Dinesh Babel (Member)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2230162	5.42
Any Others (Specify)	28187306	68.48
Directors/Promoters & their Relatives & Friends	28187306	68.48
Sub Total	30417468	73.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	30417468	73.90
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	744223	1.81
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	277043	0.67
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	9718204	23.61
Any Others (Specify)	3053	0.01
Clearing Members	3050	0.01
Non Resident Indians	3	0.00
Sub Total	10742523	26.10
Total Public shareholding (B)	10742523	26.10
Total (A)+(B)	41159991	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)	41159991	0.00

BUSINESS DETAILS

Line of Business :	Subject is engaged primarily in the business of Real Estate Development, Trading in Real Estate and Construction Contracts.
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

500 (Approximately)

Bankers :

· The Federal Bank Limited, Ranveer Bhanwan, 9th Chopasani Road, Jodhpur – 342 001, Rajasthan, India

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Vadodara – 390 015, Gujarat, India

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term loan from banks	319.176	81.282
Less: Current maturities of disclosed under head “other current liabilities”	(22.253)	(81.282)
From financial institutions	3.159	4.719
Less: Current maturities of disclosed under head “other current liabilities”	(1.254)	(1.854)
SHORT TERM BORROWINGS
Bank O/D (Federal Bank Limited - 3695)	0.000	97.221
Total	298.828	100.086

Notes:

Term Loan from Banks

Term loan from ICICI Bank is secured against land (with all the buildings and structures thereon) at admeasuring about 3949.41 sq.mts. Bearing plot no. 4, sector 24, Village Taloja, Taluka Panvel, District Thane; Term loan from HDFC Bank is secured against land bearing (i) Survey No. 27, Hissa No. 2A/1 (ii) Survey No.27 Hissa No.2A/2 (iii) Survey No. 27 Hissa No. 2A/3 (iv) Survey No.25 Hissa No.2 being at Village Koproli, Taluka Panvel, District Raigad together with construction thereon present and future.

Loan from financial institutions are secured against Vehicles.

Bank Overdraft from banks is secured against Fixed Deposits. Bank Overdraft is repayable on Maturity of Fixed Deposits.

Banking Relations :	--
Auditors :
Name :	T.N. Gala and Associates Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiary Companies :	· Arihant Abode Limited · Arihant Gruhnirman Private Limited · Arihant Vatika Realty Private Limited · Arihant Technoinfra Private Limited · Arihant Aashiyana Private Limited
Wholly Owned Subsidiary Company :	· Adeshwar Realty Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs.600.000 millions
15000000	Preference Shares	Rs.10/- each	Rs.150.000 millions
	Total		Rs.750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41159991	Equity Shares	Rs.10/- each	Rs.411.600 millions

Reconciliation of the shares outstanding at the beginning and at the end of reporting period

Equity shares	As at 31^st March, 2013
	No. of Shares	Amount (Rs. in millions)
At the beginning of the period	27439994	274.400
Right Issue during the period	13719997	137.200
Outstanding at the end of the period	41159991	411.600

Terms / rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in INR. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31^st March 2013, the amount of per share dividend recognised as distributions to equity shareholders was Rs.0.20.

During the year ended 31^st March 2013, The Right issue of Equity Shares is made in the proportion of 1 share for every 2 shares held for the Project of Arihant Agrima.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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

Particulars	As at 31^st March, 2013
	No. of Shares	% holding
Equity Shares of Rs.10 each fully paid
Mr. Ashok Bhanwarlal Chhajer	28151306	68.39%

As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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	411.600	274.400	274.400
(b) Reserves & Surplus	229.928	162.971	92.691
(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)	641.528	437.371	367.091
(3) Non-Current Liabilities
(a) Long-term borrowings	501.828	2.865	86.001
(b) Deferred tax liabilities (Net)	1.010	0.456	1.130
(c) Other long term liabilities	0.000	0.000	0.806
(d) Long-term provisions	0.711	0.100	0.000
Total Non-current Liabilities (3)	503.549	3.421	87.937
(4) Current Liabilities
(a) Short term borrowings	142.217	378.276	139.176
(b) Trade payables	32.400	22.803	102.956
(c) Other current liabilities	407.633	339.965	217.788
(d) Short-term provisions	105.858	83.019	50.899
Total Current Liabilities (4)	688.108	824.063	510.819
TOTAL	1833.185	1264.855	965.847
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	24.619	22.265	23.292
(ii) Intangible Assets	1.778	1.740	1.224
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.711	0.540	20.480
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	704.669	344.086	197.052
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	731.777	368.631	242.048
(2) Current assets
(a) Current investments	0.660	20.298	1.011
(b) Inventories	607.741	373.840	177.239
(c) Trade receivables	78.405	70.317	52.312
(d) Cash and cash equivalents	13.734	131.322	160.826
(e) Short-term loans and advances	199.444	86.119	115.973
(f) Other current assets	201.424	214.328	216.438
Total Current Assets	1101.408	896.224	723.799
TOTAL	1833.185	1264.855	965.847

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	697.012	645.409	1016.507
		Other Income	87.402	42.937	25.670
		TOTAL (A)	784.414	688.346	1042.177
Less	EXPENSES
		Cost of construction, land and development expenses	727.960	634.247	798.459
		Purchases of Stock-in-Trade	47.940	4.500	84.450
		Changes in inventories of finished goods, incomplete projects (WIP) and Stock-in-Trade	(233.901)	(196.602)	(35.551)
		Employee benefits expense	25.423	16.717	14.334
		Other expenses	54.415	59.903	51.848
		TOTAL (B)	621.837	518.765	913.540
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		162.577	169.581	128.637
Less	FINANCIAL EXPENSES (D)		86.705	48.459	19.040
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		75.872	121.122	109.597
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.325	2.801	1.496
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		72.547	118.321	108.101
Less	TAX (H)		23.462	38.278	35.517
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		49.085	80.043	72.584
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		137.972	67.691	4.699
Add/ Less	Earlier year provisions		0.000	(0.195)	0.007
Less	APPROPRIATIONS
		Proposed Equity Dividend	8.232	8.232	8.232
		Tax on Proposed Equity Dividend	1.335	1.335	1.367
	BALANCE CARRIED TO THE B/S		177.490	137.972	67.691
	Earnings / (Loss) Per Share (Rs.)		1.21	2.92	2.94

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Type	1^st Quarter
Net Sales	107.700
Total Expenditure	106.600
PBIDT (Excl OI)	1.100
Other Income	25.300
Operating Profit	26.400
Interest	23.600
Exceptional Items	0.000
PBDT	2.800
Depreciation	0.900
Profit Before Tax	1.900
Tax	0.700
Provisions and contingencies	0.000
Profit After Tax	1.200
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	1.200

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.26	11.63	6.96
Net Profit Margin (PBT/Sales)	(%)	10.41	18.33	10.63
Return on Total Assets (PBT/Total Assets}	(%)	3.96	9.36	15.37
Return on Investment (ROI) (PBT/Networth)		0.11	0.27	0.29
Debt Equity Ratio (Total Debt/Networth)		1.00	0.87	0.61
Current Ratio (Current Asset/Current Liability)		1.60	1.09	1.42

LOCAL AGENCY FURTHER INFORMATION

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

Unsecured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
From Directors	125.000	0.000
From Body Corporates	78.000	0.000
SHORT TERM BORROWINGS
From Directors	123.556	199.403
From Body Corporates	18.661	81.652
Total	142.217	281.055

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10380250	11/10/2012 *	150,000,000.00	ICICI BANK LIMITED	LANDMARK RACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B60556354
2	10275159	04/03/2011	1,800,000.00	THE FEDERAL BANK LIMITED	RANVEER BHANWAN, 9TH CHOPASANI ROAD, JODHPUR, RAJASTHAN - 342001, INDIA	B08958662
3	10261869	31/12/2010	250,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE, 169, BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B03415825

* Date of charge modification

CORPORATE INFORMATION:

The company is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged primarily in the business of Real Estate Development, Trading in Real Estate and Construction Contracts. The operations of the Company span in all aspects of real estate development, from the identification and acquisition of land, planning, execution, construction and marketing of projects.

FINANCIAL RESULTS

During the year, the Company’s total income has been registered at Rs.788.414 millions in comparison of Rs.688.346 millions of the previous financial year. The profit after tax (PAT) has been registered at Rs.49.085 millions in comparison of Rs.80.043 millions of the previous financial year.

OPERATIONS REVIEW:

PROJECT “ARIHANT AMODINI”

This is a residential project located at Taloja (Navi Mumbai). Amodini consists of approximately 126 flats, having approximately 1.36 lacs sq. ft. developable / saleable area. Arihant Amodini consists a stilt+22 Storied Tower comprising elegant 2BHK. The land has been conveyed in the name of subject by way of Tripartite Agreement. 90% construction activities are completed. The project has internal and external amenities such as intercom facility, UPVC sound resistance French windows, velvet touch paint with POP in all rooms, children play area, health club, gymnasium, landscape garden, power backups for lifts, indoor game room and library.

PROJECT “ARIHANT ARHAM”

The residential project is located on the picturesque Panvel- Matheran Road, Koproli, Panvel. The project consists of 32 building having 501 flats approx. The project is completed. Arihant Arham is a stilt +4 storey tower comprising elegant 1BHK and 2BHK with recreational facilities on the riverside park. The project has internal and external amenities such as intercom facility, granite top kitchen platform, elegant entrance lobby, landscapes garden with water fountains, swimming pool, gymnasium with club house, children play area, amphitheatre with party lawn, Jogging Track, Meditation Center, ample car parking, basket ball court, external camera for security checks, temple.

PROJECT “ARIHANT AAROHI”

This is a residential project located at Kalyan Shil Road, Navi Mumbai. Arihant Aarohi consists of approximately 180 flats, having approximately 3.5 acres land area. Arihant Aarohi consists a stilt + 15 storeyed tower comprising elegant 1BHK and 2BHK. Construction is in full swing. The project has internal and external amenities such as Intercom facility, UPVC sound resistant french windows, granite top kitchen platform, swimming pool, library, children play area, health club, gymnasium, landscape garden, indoor game room, power backups for lifts.

PROJECT “ARIHANT ADITA”

The residential project is situated at Pal Road, Gangana, Jodhpur (Rajasthan) and is just 1 km from the National Highway. This is first of its type high rise Residential project in Jodhpur. The project will provide the people of Jodhpur all state of the art facilities and amenities, forming part of the similar projects in Mumbai and other Metro cities only, which is till now only a dream to the people of Jodhpur. The project has amenities such as Swimming Pool, Badminton Court, Basket Ball Court, Kids Play Room, Amphitheatre, Garden Lawn, Steam Room, Gymnasium, etc. to name a few.

PROJECT “ARIHANT AYATI”

The residential project named as “Arihant Ayati” is situated at Devnagar, Jodhpur (Rajasthan). This Project is stilt + 16 storied Towers consisting 3 BHK Super Luxurious Flats having the Internal and External Amenities like swimming pool, Health Club with Gymnasium and stem room, Green concept at Top Terrace for cool temperature and External Texture with pure Acrylic Paint etc.

PROJECT “ARIHANT AGRIMA”

The Company has got an Affordable Housing Project at Jodhpur named “Arihant Agrima”. This project is on a Public Private Partnership with the “Jodhpur Development Authority (JDA)” Jodhpur, Rajasthan, won through Tender process.

PROJECTS UNDER SUBSIDIARIES:

PROJECT “ARIHANT AKANKSHA”

This is a residential project located at Panvel, Navi Mumbai. The project consists of 8 Buildings having 2200 flats approx. Arihant Akanksha a stilt + podium + 27 storey tower comprising elegant 2BHK and 3BHK and 4BHK apartments. The project having internal and external amenities such as intercom facility, Velvet touch paint with POP in all rooms granite top kitchen platform, elegant entrance lobby, 4 high speed lifts in each building, business lounge, landscapes garden with water fountains, swimming pool, gymnasium with club house, children play area, amphitheatre with party lawn, Jogging Track, Meditation Center, ample car parking, basket ball court, external camera for security checks, temple.

PROJECT “ARIHANT ARSHIYA”

This residential project named as “Arihant Arshiya” is situated at Khalapur, Khopoli. This project consists of 1600 flats approx having 23 acres land area. The construction of project is in full swing. Arihant Arshiya is a part stilt +3 storey tower comprising elegant 1RK, 1BHK, 2BHK flats. The project is having internal and external amenities such as swimming pool, library, children play area, health club, gymnasium, landscape garden, indoor game room, power backups for lifts, Ganesh temple, complex owned shuttle bus service.

PROJECT “ARIHANT ANMOL”

This is a residential project located at Jouveli Badlapur (E). Anmol project consist of 650 flats having 7 acres land area. The land has been conveyed in the name of subject. The construction is in full swing. The project has internal and external amenities such as intercom facility, granite top kitchen platform swimming pool, library, children play area, health club, gymnasium, landscape garden, indoor game room, power backups for lifts.

PROJECT “ARIHANT AMISHA”

This residential project named as “Arihant Amisha” situated at Wawanje Taloja, Panvel. This project consists of 700 flats having 20 acres land area. The construction of the project is started in full swing. The project has various amenities such as intercom facility, air conditioner in each flat, Ganesh Temple, Swimming Pool, Health Club with Gymnasium and Steam Room, Community hall, cum social activity center and library, external camera for security check, air conditioner in each flat, beautiful landscaped garden etc.

PROJECT “ARIHANT ALOKI”

This residential project named as “Arihant Aloki” situated at Bhisegaon Karjat (W). This project consists of 232 flats having 5 acres land area. The project is just launched. Arihant Aloki is a stilt +4 storey tower comprising elegant 1BHK and 2BHK flats. The project has internal and external amenities such as intercom facility, granite top kitchen platform, burner gas hob and chimney, swimming pool, Ganesh temple, children play area, health club, gymnasium, landscape garden, indoor game room, power backups for lifts.

SUBSIDIARIES:

During the year,

a) Arihant Technoinfra Private Limited and Arihant Aashiyana Private Limited have become the subsidiaries of the Company w.e.f. 17^th September, 2012. Arihant Aashiyana Private Limited is engaged in the business of construction and real estate activities and Arihant Technoinfra Private Limited is engaged in the business of production of AAC Block.

b) Adeshwar Realty Private Limited, Arihant Abode Limited, Arihant Vatika Realty Private Limited and Arihant Gruhnirman Private Limited continued to be the subsidiaries of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ECONOMIC OVERVIEW:

The Indian economy faced another challenging year in 2012-13. GDP growth slowed considerably, the Central Statistics Office (CSO) estimated a GDP growth of 5.0% for the year 2012-13. GDP and IIP growth have been at the lowest levels in the past ten years, while interest rates peaked during the year. Despite the ongoing macroeconomic volatility and geopolitical uncertainty, 2012-13 generally represented a year of stabilization within the global economy. Confidence improved as the year progressed, as central banks around the world eased monetary policy in order to support a budding economic recovery. Positive catalysts emerged across the globe, with the U.S. housing market continuing to improve and sovereign debt concerns in Europe beginning to subside. With liquidity continuing to flood the market and interest rates remaining near historic lows, the world economy ended the year poised for a return to normalcy and moderate levels of growth. On the domestic front, high interest rates, decelerating industrial production and a lack of policy reform momentum resulted in a subdued economic environment. High inflation and a tight monetary policy slowed improvement in consumer demand.

While Financial Year 2013 was challenging for the Indian economy, some key positives did emerge. The WPI headline inflation reduced to a 40-month low of 5.96% in March 2013. The moderation in WPI headline inflation and a global correction in commodity prices including that of oil and gold will benefit India’s inflation and current account deficit outlook. This should support an easing of the monetary policy going forward. The Union Budget was progressive and is expected kick-start the next cycle of investments leading to an improved economic environment. Positive policy initiatives announced by the Government including foreign direct investment (FDI) in multiple sectors, easing FII investment norms and rationalization of fuel and fertilizer subsidies helped improve investor confidence and reduce the fiscal and current account deficits.

While there have been challenges, many viewed 2012-13 as the cyclical bottoming out of the domestic economy. Interest rates did soften from their peak in 2012-13 and are expected to continue to decline through 2014. WPI headline inflation saw a sharp decline during the year and has made way for monetary policy easing that should stimulate domestic consumption demand and lead to better GDP growth. Strong GDP growth, favourable demographics and a strong urbanisation trend ensure the long term fundamentals of the Indian economy remain intact. India recorded a CAGR in GDP of 7.6% for the period 2003-2013, 63% of the population is under the age of 30 and there is strong probability that India will house the world’s largest consumer market by 2030.

INDUSTRY STRUCTURE AND DEVELOPMENT:

The organized segment of Indian Real estate is only about two decade old. But now to get in place true governance has become the decisive point for the sector to prosper. A plethora of regulatory issues and policy hurdles contributed towards the slowdown in both announcement as well as implementation of fresh projects in 2012-13. There has been an inordinate delay in formulating this policies and getting them approved by the respective state governments. In Rajasthan, the conversion process has come to a stand still. The conversions were stopped earlier to restructure the process by the government. Though the revised laws have been drafted but they are still to be notified. In Maharashtra, a new notification was announced with respect to mandatory EWS housing in projects. But as the status is not clear yet, the developers cannot take a decision on the future expansion plans.

The Regulatory Bill is currently trying to put a regulator in place for the sector, but the problem is that every city and town in this country has a different development control regulator. While the bill will lay down and monitor strict timelines for execution of a project (with severe penal implications for the promoter/ developer), it will do nothing to address the inevitable delay that accompanies various approvals and make there timelines impossible to adhere to. They are already required to obtain more than 50 permissions for a project which takes them more than a year to secure. Customers currently have to bear too many types of taxes levied under various heads, including stamp duty on land and building, VAT and Service Tax, External Development Charges (EDC) and Internal Development Charges (IDC) are also collected by the Government. All these regulatory issues coupled with bundles of approvals and multiple tax layers for customers make it very hard for the industry as whole to develop and sell value homes in time.

Though the residential sector has witnessed concerns of oversupply in some metro cities, demand situation at tier two cities remained buoyant. In most markets where Arihant has a presence, the prices went up without any slowdown in volumes. On a longer run, the demand for residential units in India is expected to remain strong as estimates show huge deficit in the supply of mass housing units continue and according to estimates published by Cushman and Wakefield, demand for residential units in India is estimated to be over 7.5 million units between 2009 and 2013 - an average of 1.5 million units for each of the five years. A bulk of this demand is expected to come from middle income segment. The key drivers of this growth in demand of residential housing are discussed below First is the favorable demographic situation - large working population and rapid urbanization levels Currently, 63 percent of India’s population is in the age group of 15- 59 years and only 30 per cent of India’s population in urban. Both these numbers are going to increase in the future. Besides, reduction in household sizes due to preference for nuclear families and urban migration will further boost demand for housing Second factor is driven by strong and sustained growth of the economy; disposable incomes are increasing at a significant pace.

Per capita income has more than tripled from Rs.0.017 million in 2000-01 to Rs.0.062 million in 2012-13 According to research by the McKinsey Global Institute, the number of household earning over Rs.0.500 million per annum will increase from 3.6 million in 2005 to 8.8 million in 2015. This is expected to give a considerable push to the demand for housing in the consumer segments that is their focus area. Third driver is the affordability. The rise in income opportunities and quality of jobs coupled with availability of home finance has brought down the average age of first time buyers of residential property considerably. Even as interest rates for home loans have increased significantly in the last couple of years and are now ranging between 9-10 per cent, these rates are still much lower than the highs of 18 per cent in the mid-1990s. Together, these factors have brought about a substantial increase in the affordability of a residential property. They estimate the price affordability - measured a number of years of income required to own a house - to be around 4-5 years as compared to 22 years in the mid- 1990s.

To sum up, while the longer term demand outlook remains robust and sustainable given the housing shortage the country faces, in the short term concerns remain over the prevailing uncertainties in the regulatory environment.

FINANCIAL REVIEW 2012-13:

Revenue and Profitability

In the Financial year 2012-13, the Company has recorded Rs.788.400 millions as Total Revenue against Rs.688.300 millions revenue from previous year however Profit After Tax is Rs.49.100 millions in comparison to Rs.80.000 millions in the previous year. Profit before interest depreciation and tax is Rs.160.100 millions in comparison to Rs.169.500 millions in the previous year.

The Company has also focused on servicing Customer’s efficiently by way of reduction in completion of Project time. This has led to greater Customer’s satisfaction.

BUSINESS REVIEW 2012-13:

The Government is seeking to promote various types of Public-Private Partnerships (PPP) for realizing the goal of Affordable Housing for all’. During the year Company has entered into a new business line by establishing a plant for AAC Block in Barmer Region.

Homes

Built on a foundation of strong lineage and an established reputation, Arihant has been a trendsetter in contemporary Urban Development and Housing. These developments have always been all embracing with comprehensive solutions for eminent and quality living.

Arihant has pioneered some of the best-known Urban Housing destinations in Navi Mumbai. The product categories of the Company in Homes Segment deliver the strengths of good architecture, appropriate Designs, impressive aesthetics and safety features.

Arihant’s dominant position in Indian homes segment:

• Trusted brand with superior execution track record.

• Pioneered “affordable luxury” Housing Segment.

• Complete offering of Mid-Income Homes.

Performance Financial Year 2013:

The year 2012-13 started with carrying forward the success of mid-income homes launched in Financial Year 2012. However, with the change in the overall economic environment. This was primarily due to strong customer confidence and satisfaction in buying homes on account of certainty of future incomes, coupled with a perception and anticipation of price of homes being increased. Looking at the changed scenario, Arihant revamped few of its offerings and launched new Projects in line with the expectations of customers.

Launches Financial Year 2013:

· Arihant Anmol a Project at Badlapur, Maharashtra

· Arihant Amisha a Project at Taloja Panvel Road, Maharashtra

· Arihant Aloki a project at Karjat, Maharashtra

· Arihant Arshiya a Project at Khopoli, Maharashtra

· Arihant Adita a Project at Jodhpur, Rajasthan

FUTURE OUTLOOK

The long term scenario and the projected demand of housing units in the middle income segment, have a long way to go. Housing is a basic necessity and will remain a priority for most individuals. The process of urbanization is only starting in India and more people are expected to come to cities for work and better lives. But as the cities are growing, so are the complexities in having them developed in organized manner. So many regulatory hurdles and policy issues block infrastructure and housing development. In the short term, regulatory concerns and blockages will affect the construction and area booked figures of the company. They have highlighted some of the aspects in which they operate and think differently than the crowd. They derive comfort in their approach from the performance in the past few years and do believe that they have laid the foundations for a strong growth platform for the company. Their strong cash flows, sound balance sheet and the right approach and tools will help them stand and outgrow the short term constraints the industry faces. The changing demographic mix and the increasing income levels will continue to drive the demand for real estate across all segments in which the company operates - Middle Income Housing and Active Senior Living. With the demand for 16 million homes in the next decade, the long term outlook remains buoyant with the company positioned very well to manage the short term concerns and capitalize on the long term demand.

CONTINGENT LIABILITIES (AS ON 31.03.2013):

The Company has guaranteed borrowings (Term Loan) of one of its subsidiary Company, Arihant Technoinfra Private Limited for Rs.166.000 millions.

FIXED ASSETS:

Tangible Assets

· Computer and Spare Parts

· Office Equipments

· Plant and Machinery

· Vehicle

· Furniture and Fixtures

· Shop

Intangible Assets

· Computer Software

· Trade Mark

WEBSITE DETAILS:

OVERVIEW:

Subject has played a major role in transforming the skyline of Navi Mumbai with an epitome of verve. Subject has a glorious clientele, a network of investors and financiers, efficient supply chain and good banker relations. With an uncompromising attitude in terms of quality control procedures, checks at all levels from building materials and construction methodologies to quality of skilled manpower, subject has consistently created a benchmark in the Real Estate industry. With consistent efforts over time, subject has constructed more than 37 lakhs sq. ft. of vibrant lifestyle in residential projects.

Subject sold 1017 flats in year 2012 and will be giving possession of 1100 flats this year. Subject, today has bagged 15 million sq.ft. of Real Estate construction to be carried out in the near future reflecting continuing stability and sustainability and consistency.

Arihant 95% of Real Estate segment is in affordable housing. Arihant has always believed in giving extra and has surpassed people’s expectations by giving them more than their expectations. This belief “Ek Sasta Ghar Kharab Ghar Nahi Ho Sakta has earned subject, the first PPP project for EWS and LIG in Chokha, Rajasthan the project to construct 1350 houses.

Arihant has undertaken the 125 acre wellness and multi use project which is in the conceptualization and design stage. Subject embarks towards the journey of inclusive growth with a 225 people’s team building it day after day.

Subject is a BSE listed Company of the stock exchange and that reflects transparency, delegation and cultured working system which are well designed and operating fully with a strong structure.

AWARDS AND CITATIONS

Recognitions by the Industry and Society

Builder Information Bureau

Building Industry Leadership Award – September 2008

All India Achievers Foundation

Indian Achievers Award for Constructions and Design

Association for economic growth and social development

Bhartiya Nirman Rattan Award

Council for Economic growth and Research

Rashtriya Udyog Ratna Award

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 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.61.30
UK Pound	1	Rs.97.99
Euro	1	Rs.83.15

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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	--

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