MIRA INFORM REPORT

Report Date :

05.09.2013

IDENTIFICATION DETAILS

Name :	WALCHANDNAGAR INDUSTRIES LIMITED
Registered Office :	3 Walchand Terrace, Opposite Air Conditioned Market, Tardeo, Mumbai – 400 034, Maharashtra
Country :	India
Financials (as on) :	30.09.2012
Date of Incorporation :	25.11.1908
Com. Reg. No.:	11-000291
Capital Investment / Paid-up Capital :	Rs. 76.140 Millions
CIN No.: [Company Identification No.]	L74999MH1908PLC000291
TAN No.: [Tax Deduction & Collection Account No.]	MUMW02073B
PAN No.: [Permanent Account No.]	AAACW0541M
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	The company's principal activities are engineering, fabrication and manufacture of machineries for sugar plants, cement plants and boilers, heavy duty gears, mineral processing, special and general engineering equipments.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 10000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well established company having a satisfactory track record. There appears dip in sales and profit of the company. However, networth of the company is strong. The promoter seems to be experienced businessmen. Trade relations are reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for normal business dealings at usual trade terms and condition.

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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: A
Rating Explanation	Average credit quality and average credit risk.
Date	19.04.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating: A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	19.04.2013

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 (GENERAL DETAILS)

Name :	Mr. Govind Khuperkar
Designation :	Accounts Manager
Contact No.:	91-2163-227201
Date :	02.09.2013

LOCATIONS

Registered Office :	3 Walchand Terrace, Opposite Air Conditioned Market, Tardeo, Mumbai – 400 034, Maharashtra, India
Tel. No.:	91-22-23630097/ 40287109/ 23692295
Fax No.:	91-22-23634527
E-Mail :	gsagrawal@walchand.com wil@walchand.com scbhagwat@walchand.com
Website :	http://www.walchand.com
Pune Office :	Walchand House, 15/1/B-2, Kothrud, Pune – 411038, Maharashtra, India
Factory 1 :	Walchandnagar, District Pune, Maharashtra, India
Factory 2 :	Satara Road, District Satara - 415010, Maharashtra, India
Tel. No.:	91-2163-227201 / 227316
Fax No.:	91-2163-227205
E-Mail :	wilfoundry@vsnl.net
Factory 3 :	Attikola, District Dharwad - 580003, Karnataka, India
Tel. No.:	91-836-2448565/ 2447359/ 2442382
Fax No.:	91-836-2448508
E-Mail :	tiwac@sancharnet.in
Marketing and Project Office:	Walchand House, 167A, 2/8+2/9, Karve Road, Kothrud, Pune – 411 038, Maharashtra, India
Tel. No.:	91-20-30252400
Oil and Gas :	215- Raikar Chambers, Govandi (East), Mumbai – 400 088, Maharashtra, India
Tel. No.:	91-22-25502807/25502808
Fax No.:	91-22-25502804
E-mail :	oilandgas@walchand.com
Branch Office :	Located at: · Hyderabd · Chennai · Kolkata

DIRECTORS

As on: 30.09.2012

Name :	Mr. Chakor Lalchand Doshi
Designation :	Chairman
Address :	Neela House, 2^nd Floor, M. L. Dahanukar Marg, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	15.09.1948
Date of Appointment :	15.05.1979
DIN No.:	00210949
Name :	Dr. Prahlad Kumar Basu
Designation :	Director
Address :	The Retreat, Bungalow No. 460, Sector 15A, Noida (Uttar Pradesh), Off New Delhi – 201 301, India
Date of Birth/Age :	16.12.1931
Date of Appointment :	18.12.1990
DIN No.:	01293663
Name :	Mr. Dilip Jayantikumar Thakkar
Designation :	Director
Address :	12, Acropolis-B, Little Gibs Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	01.10.1936
Date of Appointment :	10.03.2003
DIN No.:	00007339
Name :	Mr. Arjun Uttamchand Rijhsinghani
Designation :	Additional Director
Address :	172-B, Shivalik, Near Malviya Nagar, New Delhi – 110 017, India
Date of Birth/Age :	13.11.1932
Date of Appointment :	24.04.2006
DIN No.:	00177091
Name :	Dr. Anil Purushottam Kakodkar
Designation :	Additional Director Director
Address :	5/1104, Accolade Co-Operative Housing Society, Hajuri Dargah Marg, Behind LIC, Thane (West) – 400 604, Maharashtra, India
Date of Birth/Age :	11.11.1942
Date of Appointment :	27.12.2010
DIN No.:	03057596
Name :	Mr. Ghyanendra Nath Bajpai
Designation :	Additional Director Director
Address :	131, Shaan Apartemnts, Kashinath Dhuru Marg, Opposite Kirti College, Prabhadevi, Mumbai – 400 028, Maharashtra, India
Date of Birth/Age :	06.07.1942
Date of Appointment :	27.12.2010
DIN No.:	00946138
Name :	Mr. Jaysing Laxmanrao Deshmukh
Designation :	Managing Director and Chief Executive Officer
Address :	185, Mahatma Housing Society, Kothrud, Pune – 411 029, Maharashtra, India
Date of Birth/Age :	03.05.1949
Date of Appointment :	01.04.2004
DIN No.:	00267467
Name :	Mr. G. K. Pillai
Designation :	Managing Director and CEO
Name :	Mr. Chirag Chakor Doshi
Designation :	Managing Director
Address :	Neela House, 4^th Floor, M. L. Dahanukar Marg, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	22.04.1974
Date of Appointment :	25.11.2007
DIN No.:	00181291

KEY EXECUTIVES

Name :	Mr. Giriraj Sharan Agrawal
Designation :	Company Secretary
Address :	40, Walchand Terraces, Tardeo Road, Mumbai – 400 034, Maharashtra, India
Date of Birth/Age :	04.12.1959
Date of Appointment :	30.01.2009
PAN No.:	AACPA6619H

SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	80280	0.21
Bodies Corporate	15471923	40.64
Any Others (Specify)	386410	1.01
Trusts	386410	1.01
Sub Total	15938613	41.87
(2) Foreign
Bodies Corporate	5000000	13.13
Sub Total	5000000	13.13
Total shareholding of Promoter and Promoter Group (A)	20938613	55.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5500	0.01
Financial Institutions / Banks	243051	0.64
Central Government / State Government(s)	12000	0.03
Insurance Companies	1962476	5.15
Foreign Institutional Investors	10000	0.03
Sub Total	2233027	5.87
(2) Non-Institutions
Bodies Corporate	1517911	3.99
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	12763951	33.53
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	103240	0.27
Any Others (Specify)	513463	1.35
Clearing Members	302263	0.79
Foreign Nationals	6630	0.02
Non Resident Indians	184275	0.48
Overseas Corporate Bodies	5870	0.02
Trusts	14425	0.04
Sub Total	14898565	39.13
Total Public shareholding (B)	17131592	45.00
Total (A)+(B)	38070205	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)	38070205	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons 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	Walchand Kamdhenu Commercials Private Limited	98,69,673	25.92	25.92
2	Walchand Great Achievers Private Limited	52,60,160	13.82	13.82
3	Rodin Holdings Inc	30,00,000	7.88	7.88
4	Olsson Holdings Inc	20,00,000	5.25	5.25
5	Lalitabai Lalchand Charity Private Limited	3,79,210	1.00	1.00
6	Walchand Chiranika Trading Private Limited	3,42,090	0.90	0.90
7	Chakor L Doshi	49,250	0.13	0.13

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corpration of India	1752365	4.60	4.60
	Total	1752365	4.60	4.60

BUSINESS DETAILS

Line of Business :	The company's principal activities are engineering, fabrication and manufacture of machineries for sugar plants, cement plants and boilers, heavy duty gears, mineral processing, special and general engineering equipments.
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

PRODUCTION STATUS (AS ON : 30.09.2011)

Particulars	Unit	Installed	Production
Heavy Engineering Division
Sugar Mill Machinery	Units	--	2
High Speed Centrifugals	Units	--	57
Gear & Gear Boxes	Sets	--	63 (MT 1148)
Water Tube Boilers	Units	--	2
Cement Making Plants	Units	--	3
Foundry Division :
Castings	M.T	9000	5502
Precision Instruments Division :
Pressure/Temperature Gauges	Nos.	--	606912

(D) (i) (a) The installed capacity of Heavy Engineering Division covers various items and hence given in terms of machine hours capacity based on double or triple shift as the case may be.

Particulars	Unit	Installed Capacity
Lathe	Per annum	182529
Boring and Hobbing	Per annum	192321
Drilling	Per annum	162792
Gear Cutting and Grinding	Per annum	50949
Slotting	Per annum	26163
Planning	Per annum	32742
Milling	Per annum	39474
Furnace	Per annum	105264
Other Machine Tools	Per annum	189108

(b) Installed capacity of Foundry Division Workshops other than for Castings covers various items and hence given in terms of machine hours capacity based on the shifts.

Particulars	Unit	Installed Capacity
Lathe	Per annum	210432
Boring and Hobbing	Per annum	93023
Drilling	Per annum	146688
Gear Cutting and Grinding	Per annum	9792
Slotting	Per annum	9792
Planning	Per annum	19488
Milling	Per annum	137088
Furnace	Per annum	53856
Other Machine Tools	Per annum	73152

Note: The installed capacity is as certified by the Management and accepted by the Auditors, this being a technical matter.

(ii) The break-up of Production is :

Particulars	Unit	Actual Production
Captive	MT	300
Outstanding Customer’s Castings	MT	5202

(iii) The nature of products under Heavy Engineering Division is such that it is not possible to evaluate the quantitative data in exact terms.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

800 (Approximately)

Bankers :

· State Bank of India

· Bank of India

· ING Vysya Bank Limited

· HSBC Bank

· The Hongkong and Shanghai Banking Corporation Limited

Facilities :

(Rs. In Millions)

Secured Loan

As on

30.09.2012

As on

30.09.2011

Term Loans

Indian rupee loan

Vehicle Loan - refer note 4(i)

2.594

5.658

Foreign Currency Loan

Corporate term Loan - FCNR(b) - refer note 4(ii)

130.853

218.790

External Commercial Borrowings - refer note 4(iii)

79.290

146.940

Heavy Engineering division, Walchandnagar

Buyers’ Credit Loan (Under Line of Credit Facility)

190.703

57.008

Working Capital Loans

(Secured by mortgage of residential flat in Mumbai and by way of charge

on all movable Plant and Machinery, Fixtures, implements, fittings, furniture, current assets (both present and future) including stock in trade, raw material, semi-finished and finished products, stores and spares, book debts, tools and accessories and other movables of and pertaining to heavy engineering division at Walchandnagar and by way of equitable mortgage on land and building of heavy engineering division at Walchandnagar.)

748.775

428.001

Foundry Division, Satara Road

Working capital loans

(Secured by hypothecation of all those tangible movable properties and assets, including all stocks of raw Material, Components, tools, Stores Materials, Workin-Progress, Finished Goods and book debts and equitable mortgage on fixed assets of Foundry division at Satara road.)

40.383

73.340

Total

1192.598

929.737

4(i) Vehicle Loan

ICICI Bank	Amount in millions	Interest rate % p.a.	Installment amount in millions	No. of outstanding installments	Period of Maturity from balance Sheet date
Vehicle loan I- Secured by vehicle bought under loan and repayable in 36 equated monthly installments of Rs. 0.403 Million and interest @ 8.90% p.a	12.800	8.90	0.403	15	15
Vehicle loan II - Secured by vehicle bought under loan and repayable in 60 equated monthly installments of Rs. 0.043 Million and interest @ 10.82% p.a	2.000	10.82	0.043	53	53 Months

4(ii) Corporate term Loan - FCNR(B) is secured by first Pari passu charge by way of equitable Mortgage on Land and building and hypothecation on moveable Fixed Assets and Current Assets of heavy engineering division at Walchandnagar along with other Working Capital Consortium banks and existing ECB Lender and by way of equitable Mortgage on Land and building and hypothecation on Fixed Assets of Foundry division at Satara road along with existing ECB Lender. the said loan is repayable in 29 installments with interest @ 6M Libor + 5.75%.

State Bank of India	Amount in millions	Interest rate % p.a.	Installment amount in millions	No. of outstanding installments	Period of Maturity from balance Sheet date
FCNR(B	299.200	6 Months Libor + 5.75%	14.118	2	18 Months
			9.412	11
			23.531	4
			22.609	1

4(iii) external Commercial borrowings is secured by first pari passu charge on the fixed assets of the heavy engineering division at Walchandnagar and Foundry division at Satara road and second pari passu charge on current assets of the heavy engineering division. Fixed assets and current assets of heavy engineering division at Walchandnagar presently charged to State Bank of India consortium for heavy engineering division along with corporate term loan lenders. repayable after 15 months from the date of its origination viz., September 01, 2009 in 16 equated quarterly installments and carries interest @ 3M Libor + 260 basis points, payable quarterly from the date of origination viz., September 01, 2009.

DBS Babk	Amount in millions	Interest rate % p.a.	Installment amount in millions	No. of outstanding installments	Period of Maturity from balance Sheet date
ECB	249.240	6 Months Libor+260bps	19.823	8	24 Months

Banking Relations :	--
Auditors :
Name :	K.S. Aiyar and Company Chartered Accountants
Enterprises over which any person described in (i) or (ii) above are able to exercise significant influence :	• Bombay Cycle and Motor agency Limited • Vinod Shashank Chakor Private Limited • Walchand Great achievers Private Limited • Chirag Enterprises • Walchand Kamdhenu Commercials Private Limited • Indpro Electronic System (India) Private Limited. • Walchand Chiranika Trading Private Limited • Walchand Engineers Private Limited • Chiranika Enterprises • Walchand Projects Private Limited • Chiranika Corporation • Walchand Power Systems Private Limited • Chiranika Properties • Walchand Oil and Gas Private Limited • Walchand Botanicals Private Limited • Walchand Leisure Realty Private Limited • Rodin Holdings Inc. • Walchand BMH Private Limited • olsson Holdings Inc. • Walchand Solar Private Limited

CAPITAL STRUCTURE

As on: 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
120000000	Equity Shares	Rs.2/- each	Rs. 240.000 Millions
50000	10% Cumulative Preference Shares	Rs.100/- each	Rs. 5.000 Millions
50000	Preference Shares	Rs.100/- each	Rs. 5.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38070205	Equity Shares	Rs.2/- each	Rs. 76.140 Millions

(a) Reconciliation of number of shares outstanding:

Equity Shares of Rs. 2 each	Number of Shares	Amount in Millions
At the beginning of the year	38070205	76.140
Movements during the year	--	--
At the end of the year	38070205	76.140

(b) Terms and Rights Attached To Equity Shares

The Company has only one class of equity shares having par value of Rs. 2 per share. Each shareholder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to approval of the shareholders in the ensuing Annual General meeting. 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.

(c) Aggregate Number of Bonus Shares Issued, Shares Issued for Consideration other than Cash During the Period of Five years Immediately Preceding the Reporting Date:

Particular	Number of Shares
Equity shares issued as bonus shares out of Share Premium, General reserve and Capital reserve	15022530
Equity shares allotted to the allottees of the warrant on Preferential basis upon exercise of conversion option by them (inclusive of 4,000,000 equity shares issued as bonus and included in Sr. No. 1 above)	8000000
Equity Shares issued under employee Stock Purchase Scheme, 2008 (ESPS) at par to the permanent employees	25145

(D) Details of Shareholders Holding More Than 5% In The Company

(Equity shares of Rs. 2 each fully paid up)	Number of Shares	% of holding
Walchand Kamdhenu Commercials Private Limited	9869673	25.91
Walchand Great Achievers Private Limited	5260160	13.82
Rodin holdings inc.	3000000	7.88
Olsson holdings inc.	2000000	5.25

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.09.2012	30.09.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	76.140	76.140
(b) Reserves & Surplus	3950.290	3993.499
(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)	4026.430	4069.639
(3) Non-Current Liabilities
(a) long-term borrowings	212.737	371.388
(b) Deferred tax liabilities (Net)	33.710	48.287
(c) Other long term liabilities	2649.953	2568.480
(d) long-term provisions	20.550	8.495
Total Non-current Liabilities (3)	2916.950	2996.650
(4) Current Liabilities
(a) Short term borrowings	1654.198	998.348
(b) Trade payables	2233.629	2523.446
(c) Other current liabilities	1642.569	1860.851
(d) Short-term provisions	77.181	72.829
Total Current Liabilities (4)	5607.577	5455.474
TOTAL	12550.957	12521.763
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2965.982	2868.876
(ii) Intangible Assets	45.148	75.284
(iii) Capital work-in-progress	219.530	438.143
(iv) Intangible assets under development	10.965	0.000
(b) Non-current Investments	13.565	13.565
(c) Deferred tax assets (net)	15.674	0.000
(d) Long-term Loan and Advances	34.942	54.356
(e) Other Non-current assets	13.700	13.700
Total Non-Current Assets	3319.506	3463.924
(2) Current assets
(a) Current investments	185.409	172.911
(b) Inventories	3143.934	2897.482
(c) Trade receivables	4390.913	3976.673
(d) Cash and cash equivalents	185.379	295.188
(e) Short-term loans and advances	1322.872	1713.683
(f) Other current assets	2.944	1.902
Total Current Assets	9231.451	9057.839
TOTAL	12550.957	12521.763

SOURCES OF FUNDS		30.09.2010
SHAREHOLDERS FUNDS
1] Share Capital		76.140
2] Share Application Money		0.000
3] Reserves & Surplus		4034.096
4] (Accumulated Losses)		0.000
NETWORTH		4110.236
LOAN FUNDS
1] Secured Loans		888.922
2] Unsecured Loans		150.300
TOTAL BORROWING		1039.222
DEFERRED TAX LIABILITIES		58.973
TOTAL		5208.431
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2814.473
Capital work-in-progress		585.199
INVESTMENT		467.574
DEFERREX TAX ASSETS		0.000
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		0.000
OTHER NON CURRENT ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2231.490
	Sundry Debtors	3572.506
	Cash & Bank Balances	347.232
	Other Current Assets	2.911
	Loans & Advances	1686.555
Total Current Assets		7840.694
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2557.394
	Other Current Liabilities	3877.719
	Provisions	64.396
Total Current Liabilities		6499.509
Net Current Assets		1341.185
MISCELLANEOUS EXPENSES		0.000
TOTAL		5208.431

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2012	30.09.2011
	SALES
		Revenue from Operation	8787.545	9576.735
		Other Income	137.078	66.377
		TOTAL (A)	8924.623	9643.112
Less	EXPENSES
		Cost of Materials Consumed	5160.598	5901.277
		Changes in inventories of finished goods, work-in-progress and Stock-in-trade	(190.311)	(682.739)
		Employee benefit expenses	936.797	784.360
		Other expenses	2325.054	3024.852
		Exchange Currency Fluctuation (Gain)/Loss	67.845	138.247
		Exceptional items	52.902	0.000
		TOTAL (B)	8352.885	9165.997
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		571.738	477.115
Less	FINANCIAL EXPENSES (D)		222.863	148.629
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		348.875	328.486
Less/ Add	DEPRECIATION/ AMORTISATION (F)		179.788	158.944
	PROFIT BEFORE TAX (E-F) (G)		169.087	169.542
Less	TAX (H)		47.823	41.564
	PROFIT AFTER TAX (G-H) (I)		121.264	127.978
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1273.378	1145.400
	BALANCE CARRIED TO THE B/S		1394.642	1273.378
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2807.926	1294.720
		Others	5.661	17.004
		Ethiopia	173.122	58.886
	TOTAL EARNINGS		2986.709	1370.610
	IMPORTS
		Raw Materials	118.618	215.192
		Stores & Spares	220.929	189.619
		Capital Goods	14.011	178.614
	TOTAL IMPORTS		353.558	583.425
	Earnings Per Share (Rs.)		3.19	3.36

	PARTICULARS		30.09.2010
	SALES
		Income	6723.711
		Other Income	163.459
		Exchange Currency Fluctuation Gain	49.619
		TOTAL (A)	6936.789
Less	EXPENSES
		Raw Material and Components Consumed	3963.226
		Payment to and provision for employees	616.181
		Manufacturing, Administrative and Selling Expenses	2011.639
		Exchange Currency Fluctuation Loss	0.000
		Expenditure Capitalized	(1.006)
		Exceptional Items	11.277
		Decrease / (Increase) in Stock	(91.909)
		TOTAL (B)	6509.408
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		427.381
Less	FINANCIAL EXPENSES (D)		74.901
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		352.480
Less/ Add	DEPRECIATION/ AMORTISATION (F)		133.520
	PROFIT BEFORE TAX (E-F) (G)		218.960
Less	TAX (H)		(3.931)
	PROFIT AFTER TAX (G-H) (I)		222.891
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		989.191
Less	APPROPRIATIONS
		General Reserve	22.289
		Dividend	38.070
		Tax on Dividend	6.323
	BALANCE CARRIED TO THE B/S		1145.400
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	511.193
		Other Earnings	88.275
		Ethiopia	0.000
	TOTAL EARNINGS		599.468
	IMPORTS
		Raw Materials	76.952
		Components and Spares Parts	270.454
		Capital Goods	7.281
	TOTAL IMPORTS		354.687
	Earnings Per Share (Rs.)		5.85

QUARTERLY RESULTS

PARTICULARS	31.12.2012	31.03.2013	30.06.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	1650.400	1613.600	1511.800
Total Expenditure	1759.500	1780.300	1679.600
PBIDT (Excl OI)	(109.100)	(166.700)	(167.800)
Other Income	4.900	01.500	13.300
Operating Profit	(104.200)	(165.200)	(154.500)
Interest	77.700	81.500	90.600
Exceptional Items	(24.200)	242.600	104.900
PBDT	(206.100)	(4.100)	(140.200)
Depreciation	45.500	44.300	42.700
Profit Before Tax	(251.600)	(48.400)	(182.900)
Tax	(82.400)	(17.500)	(194.100)
Provisions and contingencies	000	0.000	0.000
Profit After Tax	(169.200)	(30.900)	11.200
Extraordinary Items	000	0.000	0.000
Prior Period Expenses	000	0.000	0.000
Other Adjustments	000	0.000	0.000
Net Profit	(169.200)	(30.900)	11.200

KEY RATIOS

PARTICULARS		30.09.2012	30.09.2011	30.06.2010
PAT / Total Income	(%)	1.36	1.33	3.21
Net Profit Margin (PBT/Sales)	(%)	1.92	1.77	3.26
Return on Total Assets (PBT/Total Assets}	(%)	1.38	1.40	2.05
Return on Investment (ROI) (PBT/Networth)		0.04	0.04	0.05
Debt Equity Ratio (Total Debt /Networth)		0.46	0.34	0.25
Current Ratio (Current Asset/Current Liability)		1.65	1.66	1.21

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF CURRENT MATURITIES OF LONG-TERM DEBT

PARTICULARS	30.09.2012	30.09.2011	30.06.2010
Current maturities of Long Term Borrowings	201.873	185.876	NA

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

PERFORMANCE FOR THE YEAR IN RETROSPECT:

During the year, the revenue for the year 2011-12 declined by 7.5% as compared to the previous year. However, there is a rise in the PBT margins largely on account of the following:

• Higher contribution on account of the reduction in the material costs and better value additions

• Better realization on export sales

EXPORTS AND OVERSEAS PROJECTS:

During the year, the Company achieved an export turnover of Rs. 2980.000 Millions as against Rs. 1370.000 Millions, in the previous year. The export orders on hand as on 30.09.2012 are at Rs. 2500.000 Millions. During the year, the Company executed Cement machinery in Tanzania and Malavi.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

The Indian economy continued to witness a slowdown during the year 2011-12 due to a weakening demand for goods combined with a loss of investor confidence owing to fiscal policies. Inflation continues to remain a concern and has added to the pressures on pricing at the consumer level which in turn affected household consumption at various levels. The capital goods sector was affected adversely making the climate for investment in new projects less attractive. The Government has recently initiated some favourable changes in the monetary polic, however, these changes are expected to yield positive results only in the subsequent year.

FINANCIAL OVERVIEW

Sales and Profitability

(Rs. in Millions)

Particulars	FY 2011-12	FY 2010-11
Total Income	8924.600	9643.100
EBIDTA (Before Exceptional Items and Exchange Currency fluctuations)	692.500	615.200
EBIDTA (After Exceptional Items and Exchange Currency fluctuations)	571.800	477.000
Profit Before Tax (PBT)	169.100	169.500
Profit After Tax (PAT)	121.300	128.000
Cash Profit	301.100	286.900
Fully diluted EPS	3.19	3.36

Although, the revenue for the year 2011-12 has shown a decline of 7.50% over the previous year, there is a rise in the EBIDTA and PBT margin on account of the following:

• Higher contribution on account of the reduction in the material costs and better value addition.

• Better realization on export sales.

ORDER BOOK

The Company has been selective in booking orders during the year and has not compromised on the quality of orders despite the subdued market conditions and intense competition prevailing in the domestic market place in the sugar, boiler, cement, mineral and bulk handling project sectors. The Company has expanded its geographical footprint into the export market and has taken a number of initiatives which are expected to yield good results in the forthcoming year. The Order Book of the Company remains at a reasonable level with the outstanding orders at Rs. 14810.000 Millions as on September 30, 2012. Following are the highlights of the order book:

• It includes order for steam generation package and process house equipments at Tendaho Sugar Factory, Ethiopia which is under execution.

• It also includes order for 12 Co-Gen Power Projects aggregating to 183 MW and Sugar plant modernization/ expansion from Tamilnadu State Electricity Board (TNEB), which is under execution.

• The order book underlines the strong engagement of the Company in the Nuclear Power sector with the orders for core machinery and components for 700 MW Nuclear Power Projects of NPCIL.

KEY EVENTS

Discussions with Atomenergomash, Russia

Pursuant to the MOU signed with Atomenergomash (AEM) in 2011, discussions have taken place at various levels during the course of the year, to explore the possibility of manufacturing a number of Nuclear Power Plant (NPP) equipments in India. These discussions are making good progress and a detailed business plan is being prepared jointly. Due to the Fukushima incident and consequent activism against nuclear power, there has been some slow down in this segment of business but the nuclear business is expected to gather momentum soon.

Manufacturing – Missile Division

The esteemed Company is involved in India’s program for development of one of the most advanced surface to air missile systems in the world. In order to cater to this requirement, a state of the art manufacturing facility has been established bringing all operations under one roof.

The Company was entrusted with the manufacture of the Metallic Motor Hardware for these missiles which was accomplished successfully by the Company. The product went through many rigorous acceptance tests and initial production runs have been completed with a high level of quality standard, consequent to which, the Company has received repeat orders. The Company is planning to invest further to augment the existing manufacturing capacity of this division as this segment holds very good potential for growth.

SEGMENT REVIEW

Heavy Engineering

For the year under consideration, the Sales of the Heavy Engineering Division decreased by 9% as compared to the previous year. The profitability in the manufacturing sector is encouraging and is expected to continue but the profit margins on the project business remains to be tight and extremely competitive. The profitability margins however improved during the later part of the year due to better realizations on export projects and because of reduction in material costs resulting from better efficiencies in procurement.

FOUNDRY

The business of Foundry Division is divided mainly into:

• Automotive sector where the division supplies the heavy grey and SG Iron dies for the automotive industry.

• Industrial machinery and equipment. Although the Foundry Division has made a loss during the year 2011-12, it has been able to reverse the downward trend and achieved break even operating levels in the last quarter of the year.

PRECISION INSTRUMENT DIVISION

The Precision Instrument Division of the Company manufactures pressure and temperature gauges and sector mechanisms required for a range of process industry applications as well as automotive applications. The division grew at a rate of 12% and is on the pedestal of high growth trajectory in the coming years. This was possible due to the efforts and initiatives taken internally to improve the productivity to effectively use the available infrastructure and capital and in house design and engineering effort.

PROJECT MANAGEMENT AND CONTRACT PERFORMANCE

As mentioned above, the Company has started executing more projects on a turnkey basis. The size of the projects is also increasing as compared to the past. This, on one hand, enhances the opportunity to attain scale economies and other benefits, but it exposes the Company to a larger value of retentions and guarantees. In such a scenario, Contract Management and Performance Risk Management assume a much greater significance, than any time in the past. This entails three primary things:

• Robust estimation process.

• Strong execution process encompassing engineering, procurement, manufacturing and site installation.

• Effective Project and Contract Management.

The Company has strengthened the existing processes and increased the management bandwidth in these areas.

LIQUIDITY AND FINANCIAL PRUDENCE

Management of liquidity assumes even more importance when the size of the projects being handled goes up. This is to ensure adequate supply of funds for execution of the projects and entails the complete management of net working capital. The Company is giving significant emphasis on this aspect with specific efforts to track receivables, inventories and payment to supply base. Further, the Company firmly believes that financial prudence is the key to survival in difficult times as well as sustained growth. Despite all the constraints faced during the year, the Company has maintained key financial parameters at a prudent level, where debt equity ratio is maintained at a healthy ratio of 0.76. The Company has free cash flow of Rs 291.900 Millions on its books, which is invested in safe instruments such as liquid/liquid plus mutual funds and fixed deposits of the reputed banks.

TECHNOLOGY UP-GRADATION

The key to sustained competitiveness is the availability of contemporary technologies. The Company, over the years, has entered into collaboration arrangements with some of the world’s renowned technology providers in its core field of activities. These included ongoing technology inputs as well as project specific technology support.

DEMAND CYCLICALITY

Demand cyclicality is a generic risk applicable almost across the spectrum. In case of the Company, this risk assumes significance since most of the end users of the Company follow an economic cycle of their own. This results in variation in the revenue drawn from different end user segments from year to year. The Company’s approach to mitigate this risk continues to be:

• Technology up-gradation and moving up the value chain.

• Diverse yet synergistic revenue model.

• Focus on core and less cyclical industries such as Nuclear Power, Aerospace, Missiles and Defence.

• Growing focus on overseas business.

OUTLOOK AND CONCLUSION

Revenue

While the revenues of the Company declined by 7.50% in the year 2011-12 over the previous year, the Company looks to be poised for good growth in the next year because of the following:

• Adequate order book as on September 30, 2012, which stands at Rs. 14810.000 Millions

• Strong business outlook in the Aerospace, Missiles, Defense and Nuclear power segment. This business lends long term sustainability to the revenue model of the Company.

• A number of initiatives for developing the export market were made during the year 2011-12 which are expected to yield good results in the coming year.;

• Since the US Dollar is becoming strong, value of Rupee realisation from exports is expected to be remunerative and Company will be giving thrust for export market.

• Continued focus and efforts to build on the current order book position of the Company.

Further, the Company has strong fundamentals for a sustainable growth:

• Well diversified yet synergistic business model.

• Strong manufacturing capability.

• In house design engineering capability.

• Project management capability.

• Technology tie-up sin critical areas.

This would augur well for the Company’s long term sustainable growth.

UNSECURED LOAN

(Rs in Millions)

Particulars	As on 30.09.2012	As on 30.09.2011
Working capital loans – Foreign currency and INR	674.337	439.999
Total	674.337	439.999

CONTINGENT LIABILITIES:

Particular	30.09.2012	30.09.2011
Counter Guarantees by the Company in respect of guarantees given by banks (including guarantee on account of erstwhile Machine Tool Division of Rs. 0.355 Millions)	3009.582	3101.692
Estimated amount of Contracts remaining to be executed on Capital accounts not provided for (Net of advance)	42.927	13.729

(a) Demand of Non agricultural (Na) Tax of Rs. 8.661 Millions is raised by Tahshildar, Indapur (Previous Year Rs.8.661 Millions) out of which Rs. 2.000 Millions is paid under protest by the Company. During the year, a demand of Na tax of Rs. 7.476 Millions has been raised by the concerned authorities. No provision has been made in the accounts as the Company has not accepted the liability and the matter is sub-judice.

(b) The Central Excise authorities have raised a demand of Rs. 26.619 Millions (Previous Year Rs. 26.619 Millions) (Net of Cenvat reversal and payment) denying the exemption from the excise duty on non-conventional energy devices/systems supplied by the Company. The Company has disputed the demand and has preferred an appeal which is pending before ‘CESTAT, Mumbai’. on the basis of a legal opinion, the Company does not accept any liability.

(c) The Central Excise authorities have raised a demand of Rs. 8.245 Millions (Previous Year Rs. 7.998 Millions) on bought out items supplied for Centrifugals, which has already suffered duty at manufactures end. The Company has disputed the demand and has preferred an appeal which is pending before Supreme Court, Delhi.on the basis of legal opinion; the Company does not expect any liability.

(d) The Sales Tax authority, Maharashtra has raised demand of Rs. 15.983 Millions as per Section 6(2) of the Central Sales Tax act, 1956. The Company has disputed the demand and has preferred an appeal before The Sales Tax appellate Commissioner. on the basis of legal opinion the Company does not expect any liability.

(e) Service Tax demand of Rs. 36.265 Millions on sale of bought out items has been raised by the concerned authorities. The Company has paid an amount of Rs. 2.876 Millions under protest and has preferred an appeal which is pending before the CESTAT.

(f) Bond issued to customs department for export obligations amounting to Rs. 136.345 Millions (Previous Year Rs. 136.345 Millions)

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED JUNE 30, 2013

(Rs. in Millions)

Particulars	Quarter ended June 30, 2013	Quarter ended March 31, 2013	Nine Months ended June 30, 2013
	(Unaudited)	(Audited)	(Unaudited)
1 Income from Operations:
(a) Net Sales/ Income from Operations (Net of Excise Duty)	1510.300	1576.800	4731.400
(b) Other Operating Income	1.500	23.200	27.100
Total Income from Operations (Net)	1511.800	1600.000	4758.500
2 Expenses:
(a) Cost of Materials Consumed	966.000	1053.100	3135.800
(b) Sub-Contracting and Processing Charges	310.400	134.000	694.400
(c) Changes in Inventories of Finished Goods, Work-in-Progress & Stock-in-Trade	(158.300)	(10.900)	(363.000)
(d) Employee Benefit Expense	227.900	240.700	715.300
(e) Depreciation and Amortization Expense	42.700	44.300	132.500
(f) Other expenses	333.600	347.300	985.900
Total Expenses	1722.300	1808.500	5300.900
3 Profit/ (Loss) from Operations before Other Income, Finance Costs and Exceptional Items (1-2)	(210.500)	(208.500)	(542.400)
4 Other Income	13.300	15.100	36.900
5 Profit/ (Loss) from Ordinary Activities before Finance Costs and Exceptional Items (3+4)	(197.200)	(193.400)	(505.500)
6 Finance Costs	90.600	97.600	300.800
7 Profit/ (Loss) from Ordinary Activities after Finance Costs but before Exceptional Items & Foreign Exchange Fluctuation (5+6)	(287.800)	(291.000)	(806.300)
8 Exchange Currency Fluctuation Gain/ (Loss)	(67.800)	(2.100)	(94.200)
9 Exceptional Items (Refer Note No. 5)	172.700	2,44.700	417.500
10 Profit/ (Loss) from Ordinary Activities before Tax (7+8+9)	(182.900)	(48.400)	(483.000)
11 Tax Expense (Net of Deferred Tax Assets) (Refer Note No. 3 & 4)	(194.100)	(17.500)	(294.000)
12 Net Profit/ (Loss) from Ordinary Activities after Tax (10+11)	11.200	(30.900)	(189.000)
13 Extraordinary Items	-	-	-
14 Net Profit/ (Loss) for the period (12+13)	11200	(30.900)	(189.000)
15 Paid-up Equity Share Capital (Face Value of Rs. 21- each)	76.100	76.100	76.100
16 Reserve excluding Revaluation Reserves as per Balance Sheet of previous accounting year	N.A.	N.A.	N.A.
17 Earnings per Share (before & after Extraordinary Items) (of Rs. 21- each) (not annualized):
(a) Basic	0.29	(0.81)	(4.96)
(b) Diluted	0.29	(0.81)	(4.96)
A PARTICULARS OF SHAREHOLDING
1 Public Shareholding
- Number of shares	17,131,592	17,131,592	17,131,592
- Percentage of shareholding	45.00	45.00	45.00
2 Promoters and Promoter Group Shareholding
(a) Pledged/ Encumbered
- Number of Shares	-	-	-
- Percentage of Shares (as a % of the Total Shareholding of Promoter Group)
- Percentage of Shares (as a % of the Total Share Capital of the Company)
(b) Non-encumbered
- Number of shares	20,938,613	20,938,613	20,938,613
- Percentage of Shares (as a % of the Total Shareholding of the Promoter & Promoter Group)	100.00	100.00	100.00
- Percentage of Shares (as a % of the Total Share Capital of the Company)	55.00	55.00	55.00
B INVESTOR COMPLAINTS:
Pending at the beginning of the quarter	1
Received during the quarter	23
Disposed of during the quarter	24
Remaining unresolved at the end of the quarter	Nil

SEGMENT-WISE REVENUE RESULTS AND CAPITAL EMPLOYED

Rs. In Millions

Particulars	Quarter ended June 30, 2013	Quarter ended March 31, 2013	Nine Months ended June 30, 2013
	(Unaudited)	(Audited)	(Unaudited)
Segment Revenue:
(a) Heavy Engineering	1362.900	1492.000	4364.300
(b) Foundry and Machine Shop	136.200	88.400	343.800
(c) Others	22.600	23.200	68.000
Total	1521.700	1603.600	4776.100
Less: Inter-Segment Revenue	9.900	3.600	17.600
Net Sales/ Income from Operations	1511.800	1600.000	4758.500
Segment Results:
Profit/ (Loss) before Interest and Tax:
(a) Heavy Engineering	(265.400)	(135.100)	(503.600)
(b) Foundry and Machine Shop	(1.000)	(7.100)	(15.700)
(c) Others	(0.100)	1.100	1.900
Total	(266.500)	(141.100)	(517.400)
Less: Finance Cost	90.600	97.600	300.800
Less: Other Unallocable Expenditure (Net of Unallocable Income)	(174.200)	(190.300)	(335.100)
Profit/ (Loss) Before Tax	(182.900)	(48.400)	(483.000)
Capital Employed:
Segment Assets
Less: Liabilities
(a) Heavy Engineering	4514.700	4684.400	4514.700
(b) Foundry and Machine Shop	434.100	441.400	434.100
(c) Others	116.400	115.800	116.400
(d) Unallocated (Excluding Investments)	533.500	530.200	533.500
Total	5598.700	5771.800	5598.700

Notes:

1 The above results, as reviewed by Audit Committee and approved by Board of Directors at its meeting held on August 13, 2013, has been taken on record.

2 The Statutory Auditors of the Company have carried out a Limited Review of the Results for the quarter and nine months ended on June 30, 2013.

3 Consequent to the proceedings u/s 132 of the Income Tax Act, 1961 initiated by Income Tax Department during the First Quarter, the Company is examining the issues raised and the liablity is not specifically ascertainable at this juncture.

4 Tax expenses includes write back of excess provision made in the earlier year and creation of Deferred Tax Assets.

5 Exceptional Item for the quarter and nine months ended June 30,2013 denotes profit arising on sale of Long-Term Investments.

6 Figures for the previous periods have been regrouped, wherever considered necessary.

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10323379	16/02/2012 *	14,210,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, Maharashtra - 400005, INDIA	B36707586
2	10293305	10/12/2012 *	300,000,000.00	State Bank of India Industrial Finance Branch	2nd floor, Tara Chambers, Near Mariaaipolice Chowky, Old Pune Mumbai Highway, Wakdewadi, Pune, Maharashtra - 411003, INDIA	B67190124
3	10208042	16/02/2012 *	292,500,000.00	DBS BANK LIMITED	THROUGH MUMBAI BRANCH: CREDIT CONTROL UNIT, 3RD FLOOR, FORT HOUSE, DR D N ROAD, FORT, MUMBAI, Maharashtra - 400001, INDIA	B36737922
4	80005249	22/01/2009 *	192,700,000.00	State Bank Of India	Commercial Branch, 1548-A, Sadashiv Peth, Tilak Road, Pune, Maharashtra - 411030, INDIA	A56261415
5	90241735	13/06/2006 *	267,700,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, TILAK ROAD, PUNE, Maharashtra -  411030, INDIA	-
6	90240752	31/03/2010 *	9,300,000,000.00	State Bank of India Industrial Finance Branch	Tara Chambers, 2ndfloor, Near Mariaai Police Chowky, Pune Mumbai Highway, Wakdewadi, Pune, Maharashtra  - 411003, INDIA	A83302224
7	90238812	06/04/2009 *	7,300,000,000.00	BANK OF INDIA	PUNE CORPORATE BANKING BRANCH, SHIVAJI NAGAR, UNIVERSITY ROAD, PUNE, Maharashtra - 411005, INDIA	A61177655

* Date of charge modification

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Laboratory Equipments

· Furniture, Fixtures, Office Equipments and Electrical Fittings

· Patens

· Vehicles

· Road, Water Works and Drainage

· Intangible Assets – 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 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. 67.03
UK Pound	1	Rs. 104.32
Euro	1	Rs. 88.24

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.