MIRA INFORM REPORT

Report Date :

09.04.2014

IDENTIFICATION DETAILS

Name :	E L FORGE LIMITED
Registered Office :	No.21C, A.R.K. Colony, Eldams Road, Alwarpet, Chennai – 600018, Tamilnadu
Country :	India
Financials (as on) :	30.06.2013
Date of Incorporation :	18.07.1934
Com. Reg. No.:	18-000669
Capital Investment / Paid-up Capital :	Rs. 324.355 Millions
CIN No.: [Company Identification No.]	L34103TN1934PLC000669
TAN No.: [Tax Deduction & Collection Account No.]	CHEE02010B / CHEE03239F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Steel Forgings and also Seller of Land.
No. of Employees :	380 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 290000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Company has incurred loss from its operation in the year 2013. However, trade relation are fair. Business is active. Payment terms are slow. The company can be considered for business dealing with some caution.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-44-42207800)

LOCATIONS

Registered / Corporate Office :	No.21C, A.R.K. Colony, Eldams Road, Alwarpet, Chennai – 600018, Tamilnadu, India
Tel. No. :	91-44-42207800
Fax No. :	91-44-42014708
E-Mail :	accounts@elforge.com
Website :	www.elforge.com
Factory 1 :	84, Thiruneermalai Road, Chromepet, Chennai – 600044, Tamilnadu, India
Tel. No.:	91-44-52009690 / 52009688
Fax No.:	91-44-52009690
Factory 2 :	Hosur Division Denkanikotta Road, P. B. No. 11, Hosur – 635109, Tamilnadu, India
Tel. No.:	91-4344-22486
Fax No.:	91-4344-22841
Factory 3 :	S-104, Oggiam Thuraipakkam, Chennai – 600096, Tamilnadu, India
Tel. No.:	91-44-24961398/24961469
Fax No.:	91-44-24961407
Factory 4 :	TOOL Room 65, IInd Link Road, Nehru Nagar, Off Old Mahabalipuram Road, Chennai – 600041, Tamilnadu, India
Tel. No.:	91-44-24483821
Factory 5 :	B-67, SIPCOT Industrial Complex, Gummidipoondi – 601201, Tamilnadu, India
Mobile No.:	91-95411922845
Factory 6 :	Appur Division 1A, Sriperumbudur High Road, Appur Village, Singaperumal Kovil(via), Chengelput Taluk, Kancheepuram District - 603 204
Tel. No.:	91-44-47112500
Fax No.:	91-44-47112523
E-Mail :	elforge2@elforge.com

DIRECTORS

As on 30.06.2013

Name :	Mr. V. Srikanth
Designation :	Executive Chairman
Address :	4/1, Subbaraya Avenue, Chennai – 600018
Date of Birth/Age :	19.10.1953
Name :	Mr. V. Ramachandran
Designation :	Director
Address :	446, 8^th Cross, 5^th Main, Rajmahal Vilas Extension, HAL IInd Stage, Bangalore – 560094, Karnataka, India
Date of Birth/Age :	26.01.1948
Date of Appointment :	14.03.1996
Name :	Mr. K.V. Ramachandran
Designation :	Vice Chairman and Managing Director
Address :	No. 196A, St. Marys Road, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	25.03.1956
Name :	Mr. K. Ajit Kumar
Designation :	Nominee Director of Export Import Bank of India

KEY EXECUTIVES

Name :	R.Sowmithri
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1320002	6.49
Bodies Corporate	7065006	34.76
Sub Total	8385008	41.26
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8385008	41.26
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1605	0.01
Financial Institutions / Banks	990	0.00
Sub Total	2595	0.01
(2) Non-Institutions
Bodies Corporate	2070864	10.19
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3868310	19.03
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5877603	28.92
Any Others (Specify)	119924	0.59
Non Resident Individual / Foreign National	50329	0.25
Clearing Members	69075	0.34
Trusts	520	0.00
Sub Total	11936701	58.73
Total Public shareholding (B)	11939296	58.74
Total (A)+(B)	20324304	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	20324304	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Steel Forgings and also Seller of Land.

Products :

Item Code No. (ITC Code)	Product Description
Rough Steel Forgings	7326.19

· Engine Parts

· Transmission Parts

· Steering And Suspension Parts

· Brake Assembly Parts

· Chassis Parts

· Drive Line

· Electrical

PRODUCTION STATUS (As on 30.06.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Rough Steel Forgings	MT	NA	---	9131

Installed Capacity: Most of the Plant and Machinery being common for different types of forgings manufactured by the Company and Installed Capacity being dependent on product mix, which in turn is decided by the actual demand for various forgings from time to time, and also on availing of sub-contracting facilities. It is not feasible for the Company to indicate the exact installed capacity.

GENERAL INFORMATION

No. of Employees :

380 (Approximately)

Bankers :

· State Bank of India, Industrial Finance Branch, Chennai - 600002, Tamilnadu, India

· Union Bank of India, Industrial Finance Branch, Chennai - 600108, Tamilnadu, India

· Axis Bank Limited, Anna Salai, Chennai - 600002, Tamilnadu, India

· IDBI Bank Limited, Greams Road, Chennai - 600006, Tamilnadu, India

· Royal Bank of Scotland, Harrington Road, Chennai - 600031, Tamilnadu, India

· Kotak Mahindra Bank Limited, Capitale, Anna Salai, Teynampet, Chennai - 600018, Tamilnadu, India

· Export Import Bank of India, Anna Salai, Chennai - 600002, Tamilnadu, India

Facilities :

SECURED LOANS	30.06.2013 (Rs. In Millions)	30.06.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loans - From Banks	652.337	802.098
SHORT TERM BORROWINGS
Loans Payable on Demand	413.470	329.639
Total	1065.807	1131.737

Banking Relations :	--
Auditors :
Name :	P. Rajagopalan and Company Chartered Accountants
Address :	Chennai, Tamilnadu, India
Cost Auditors :
Name :	S. Sundar and Associates Cost Accountants
Address :
Subsidiaries:	· Shakespeare Forgings Ltd, UK

CAPITAL STRUCTURE

As on 30.06.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs. 260.000 Millions
1300000	Preference Share	Rs.100/- each	Rs. 130.000 Millions
	Total		Rs. 390.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20324304	Equity Shares	Rs.10/- each	Rs. 203.243 Millions
1211123	Preference Share	Rs.100/- each	Rs. 121.112 Millions
	Total		Rs. 324.355 Millions

NOTE

SHARE RECONCILIATION (SHARES IN NUMBERS)

PARTICULARS	As at 30.06.2013
(a) Equity Share of Rs.10/- each (in No.)
(A) No. of shares at the beginning	20324304
(B) No. of shares issued during the year/ period	---
(C) Sub-Total	20324304
(D) Less: Adjusted/ Redeemed/ Buyback	---
(E) Closing Balance	20324304
(b) Preference Share of Rs. 100/= Each (in No.)
(A) No. of shares at the beginning	1200806
(B) No. of shares issued during the year/ period	10317
(C) Sub-Total	1211123
(D) Less: Adjusted/ Redeemed/ Buyback	----
(E) Closing Balance	1211123

SHAREHOLDING MORE THAN 5% EQUITY SHARES

PARTICULARS	As at 30.06.2013
(a) Equity Shares
(A) Chendur Forgings Limited
(i) No. Equity Shares	7065006
(ii) Percentage	34.76%
(b) Preference Shares
(A) State Bank of India (No of shares and Percentage)	545931 and 45.08%
(B) Axis Bank Limited (No of shares and Percentage)	307206 and 25.37%
(C) Un ion Bank of India (No of shares and Percentage)	108202 and 8.93%
(D) Export and Import Bank of India (No of shares and %)	209817 and 17.32%
(E) IDBI Bank Limited (No of shares and Percentage)	39967 and 3.30%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.06.2013	30.06.2012	30.06.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	324.355	323.324	86.295
(b) Reserves & Surplus	(251.601)	92.973	85.798
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	1.032	50.000
Total Shareholders’ Funds (1) + (2)	72.754	417.329	222.093
(3) Non-Current Liabilities
(a) long-term borrowings	655.829	807.409	1057.437
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	655.829	807.409	1057.437
(4) Current Liabilities
(a) Short term borrowings	481.098	371.983	293.519
(b) Trade payables	356.763	241.215	208.883
(c) Other current liabilities	353.546	303.989	202.754
(d) Short-term provisions	2.257	2.257	0.768
Total Current Liabilities (4)	1193.664	919.444	705.924
TOTAL	1922.247	2144.182	1985.454
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1037.593	1110.597	1157.517
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	30.410	35.586	30.409
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	47.105	47.105	47.105
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	79.888	83.579	79.384
(e) Other Non-current assets	159.565	158.639	162.888
Total Non-Current Assets	1354.561	1435.506	1477.303
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	161.690	187.380	171.628
(c) Trade receivables	235.872	313.944	255.156
(d) Cash and cash equivalents	9.854	19.491	18.553
(e) Short-term loans and advances	23.712	29.610	25.108
(f) Stock in trade (Land)	113.116	120.300	0.000
(g) Other current assets	23.442	37.951	37.706
Total Current Assets	567.686	708.676	508.151
TOTAL	1922.247	2144.182	1985.454

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2013	30.06.2012	30.06.2011
	SALES
		Income	753.329	833.007	1042.051
		Other Income	10.398	139.737	35.264
		TOTAL (A)	763.727	972.744	1077.315
Less	EXPENSES
		Cost of Materials Consumed	442.850	412.414	497.042
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	17.831	48.380	75.676
		Employees benefits expense	132.114	121.877	131.937
		Other expenses	287.652	272.822	299.743
		TOTAL (B)	880.447	855.493	1004.398
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(116.720)	117.251	72.917
Less	FINANCIAL EXPENSES (D)		142.847	120.379	78.835
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(259.567)	(3.128)	(5.918)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		78.636	81.071	91.845
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(338.203)	(84.199)	(97.763)
Less	TAX (H)		0.000	7.614	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(338.203)	(91.813)	(97.763)
	EARNINGS IN FOREIGN CURRENCY
		Export Sales (FOB)	161.403	107.082	250.579
	TOTAL EARNINGS		161.403	107.082	250.579
	IMPORTS
		Components and Spare Parts	1.242	1.866	1.135
	TOTAL IMPORTS		1.242	1.866	1.135
	Earnings / (Loss) Per Share (Rs.)		(16.64)	(5.01)	(11.33)

QUARTERLY RESULTS

PARTICULARS	30.09.2013	31.12.2013
Type	1^stQuarter	2^nd Quarter
Net Sales	277.500	215.300
Total Expenditure	228.400	227.700
PBIDT (Excl OI)	49.000	(12.400)
Other Income	3.100	3.700
Operating Profit	52.100	(8.600)
Interest	43.300	39.800
Exceptional Items	0.000	0.000
PBDT	8.800	(48.400)
Depreciation	23.500	23.500
Profit Before Tax	(14.700)	(72.000)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(14.700)	(72.000)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(14.700)	(72.000)

KEY RATIOS

PARTICULARS		30.06.2013	30.06.2012	30.06.2011
PAT / Total Income	(%)	(44.28)	(9.44)	(9.07)
Net Profit Margin (PBT/Sales)	(%)	(44.89)	(10.11)	(9.38)
Return on Total Assets (PBT/Total Assets}	(%)	(18.33)	(4.08)	(5.23)
Return on Investment (ROI) (PBT/Networth)		(4.65)	(0.20)	(0.44)
Debt Equity Ratio (Total Debt/Networth)		15.63	2.83	6.08
Current Ratio (Current Asset/Current Liability)		0.48	0.77	0.72

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	30.06.2011	30.06.2012	30.06.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	86.295	323.324	324.355
Reserves & Surplus	85.798	92.973	(251.601)
Share Application money pending allotment	50	1.032	0.000
Net worth	222.093	417.329	72.754
long-term borrowings	1057.437	807.409	655.829
Short term borrowings	293.519	371.983	481.098
Total borrowings	1350.956	1179.392	1136.927
Debt/Equity ratio	6.083	2.826	15.627

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.06.2011	30.06.2012	30.06.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1042.051	833.007	753.329
		(20.061)	(9.565)

NET PROFIT MARGIN

s	30.06.2011	30.06.2012	30.06.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1042.051	833.007	753.329
Profit	(97.763)	(91.813)	(338.203)
	(9.38%)	(11.02%)	(44.89%)

LOCAL AGENCY FURTHER INFORMATION

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10361653	25/07/2013 *	1,175,600,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	B80520778
2	10361651	25/07/2013 *	387,600,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	B80518715
3	10220281	22/05/2010	22,500,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RIAZ GARDEN, 12, KODAMBAKKAM HIGH ROAD, NUNGAMBAKKAM, CHENNAI - 600034, TAMILNADU, INDIA	A86341658
4	10213766	07/10/2010 *	8,000,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM, 192 ANNA SALAI, CHENNAI - 600018, TAMILNADU, INDIA	A97382394
5	10171845	31/07/2009	180,800,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A68177682
6	10173989	14/08/2009 *	116,500,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RIAZ GARDEN, 12, KODAMBAKKAM HIGH ROAD, NUNGAMBAKKAM, CHENNAI - 600034, TAMILNADU, INDIA	A69603496
7	10153843	31/03/2009	1,111,000,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 12, KODAMBAKKAM HIGH ROAD, CHENNAI - 600034, TAMILNADU, INDIA	A60789336
8	10148675	14/08/2009 *	43,800,000.00	AXIS BANK LIMITED	82 DR RADHAKRISHNAN SALAI, MYLAPORE, CHENNAI - 600018, TAMILNADU, INDIA	A70816319
9	10125442	14/06/2010 *	60,000,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM FIRST FLOOR, 192, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A90493404
10	10085995	14/06/2010 *	5,000,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM FIRST FLOOR, 192, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A90489485
11	10080101	15/04/2011 *	142,000,000.00	THE ROYAL BANK OF SCOTLAND	74, SAKHAR BHAVAN, 7TH FLOOR, NARIMAN POINT, MUMBAI - 400001, MAHARASHTRA, INDIA	B11812153
12	10080784	14/08/2009 *	6,500,000.00	EXPORT IMPORT BANK OF INDIA	FLOOR 21 CENTRE ONE BUILDING, WORLD TRADE CENTRE CUFEE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A70794540
13	10064099	24/03/2008 *	125,000,000.00	EXPORT IMPORT BANK OF INDIA	FLOOR 21 CENTRE ONE BUILDING, WORLD TRADE CENTRE CUFEE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A40778482
14	10039236	31/08/2009 *	142,000,000.00	ABN AMRO BANK NV	74 SAKHAR BHAVAN 7TH FLOOR, NARIMAN POINT, MUMBAI - 400001, MAHARASHTRA, INDIA	A71586085
15	10042621	07/02/2007	10,000,000.00	UTI BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	A10648616
16	10014284	03/06/2010 *	15,000,000.00	EXPORT IMPORT BANK OF INDIA	FLOOR 21, CENTER ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A90303991
17	10010097	12/06/2006	13,500,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RIAZ GARDEN KODAMBAKKAM HIGH ROAD NUNGAMBAKKAM, CHENNAI - 600034, TAMILNADU, INDIA	A02686194
18	80033305	04/03/2009 *	248,500,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A58360819
19	90290748	19/03/2008 *	102,000,000.00	UNION BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RIAZ GARDEN, KODAMBAKKAM HIGH ROAD, NUNGAMBAKKAM, CHENNAI - 600034, TAMILNADU, INDIA	A39145784
20	80034101	14/06/2010 *	97,500,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM FIRST FLOOR, 192, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A90510595
21	90290546	10/04/2012 *	801,800,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	B38704599
22	80033303	07/09/2010 *	14,400,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM, 192, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A97382014
23	80029250	11/04/2007 *	126,500,000.00	SBI FACTORS AND COMMERCIAL SERVICES (PRIVATE) LIMITED	SBI CHENNAI MAIN BRANCH BUILDING, 84, RAJAJI SALAI, CHENNAI - 600001, TAMILNADU, INDIA	-
24	80033304	14/06/2010 *	37,500,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM FIRST FLOOR, 192, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A90461872
25	90290392	14/06/2010 *	31,600,000.00	AXIS BANK LIMITED	KARUMUTHU NILAYAM FIRST FLOOR, 192, ANNA SALAI, CHENNAI - 600002, TAMILNADU, INDIA	A90435348

* Date of charge modification

UNSECURED LOANS

PARTICULAR	30.06.2013 (Rs. In Millions)	30.06.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Due from Others	3.394	4.974
Long term maturities of financial obligations	0.098	0.337
SHORT TERM BORROWINGS
Loans Payable on Demand	0.796	4.095
Loans and Advances from Related Parties	2.808	2.184
Deposits	64.024	36.065
Total	71.120	47.655

YEAR IN RETROSPECT

The past year was very tough for the operations of the company. The company's efforts to inures long term funds by sale of non-core assets could not be achieved as the value for these assets could not be unlocked due to the economic situation. The restructure of debts were conditional on the funds raised and, since this could not be done the restructure proposal was not be taken up. The consequent non-availability of funds and reduced operations resulted in loss during 2012-13.

The company is continuing the efforts to achieve profitable levels by looking at all possible solutions available in this situation.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

The financial statements have been prepared in compliance with the requirements of the Companies Act 1956. Guidelines issued by the Securities and Exchange Board of India (SEB!)and the Generally Accepted Accounting Principles (GAAP) in India. Their Management accepts responsibility for the integrity and objectivity of these financial statements as well as for the various estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present their state of affairs, profits and cash flows for the year.

ECONOMIC SITUATION

The world economy continued to struggle in 2012-13 which reflected in a slow down in developing nations. The was a sharp decline in the demand from US and Europe. As per the published data, there was a decline in overall global growth for the year 2012-13.

India faced its own share of problems of decline in industrial activity and overall slowdown in all sectors. As per the RBI sources the quarter ending December' 2012registered a GDP growth of 4.7% which is a nine year low in GDP.

The Indian automobile industry faced significant decline owing to the high interest rates, rising energy prices and spiraling inflation. However the Company's order book is steady, thanks to the manufacturing facility and quality certifications.

OUTLOOK

They believe that global opportunities for Companies like them will accrue due to the cost of manufacture being prohibitive in the West. While they are aware of the risks, they are confident of improving the performance through appropriate marketing programmes. They propose to continue developing capacities and capabilities to cater to the global supply chain.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2013

(RS. IN MILLIONS)

Sl. No .	Particulars	Quarter		Six Month
		Ended 31.12.2013 Unaudited	Ended 30.09.2013 Unaudited	Ended 31.12.2013 (Jul'13 to Dec'13) Unaudited
1	Operating Income
	Gross sales / Income from Operations	231.639	215.149	446.788
	Less: Excise Duty /Sale Tax recovered	16.312	16.616	32.928
	a) Net Sales/Income from Operations	215.327	198.533	413.860
	b) Other Operating Income	0.000	78.938	78.938
	Total Operating Income (1)	215.327	277.471	492.798
2	Expenditure
	(a) (Increase)/decrease in Stock in Trade	15.111	(4.922)	10.189
	(b) Consumption of Raw Materials	109.146	121.530	230.676
	(c) Employees Cost	34.002	36.875	70.877
	(d) Depreciation	23.537	23.537	47.074
	(e) Other Expenditure	69.428	74.971	144.399
	Total Expenditure (2)	251.224	251.991	503.215
3	Profit / (Loss) From Opertions before other	(35.897)	25.480	(10.417)
4	Other Income	3.721	3.103	6.824
5	Profit/(Loss) before Interest and exceptional	(32.176)	28.583	(35.93)
6	Interest	39.769	43.297	83.066
7	Net Profit / (Loss) after interest before	(71.945)	(14.714)	(86.659)
8	Tax Expenses	0.00	000	0.00
9	Net Profit/(Loss) after tax	(71.945)	(14.714)	(86.659)
10	Paid Up Equity Share Capital ( Face Value of	203.243	203.243	203.243
11	Reserves excluding Revaluation Reserves as	---	---
12	Earning per Share(EPS) -Basic (Rs.)	(3.54)	(0.72)	(4.26)
	-Diluted (Rs.)	(3.54)	(0.72)	(4.26)
13	Public Share Holding Number of Shares	11938446	11938446	11938446
	Percentage of Shareholding	58.74	58.74	58.74
14	Promoters and Promoter group share	8385858	8385858	8385858
	a) Pledged/Encumbered
	- Number of Shares	6304600	6304600	6304600
	'- Percentage of share (as a % of the total shareholding of promoter and promoter	75.18	75.18	75.18
	'- Percentage of shares(as a % of the total share	31.02	31.02	31.02
	b) Non-encumbered
	- Number of Shares	2081258	2081258	2081258
	'- Percentage of share (as a % of the total shareholding of promoter and promoter	24.82	24.82	24.82
	'- Percentage of shares(as a % of the total share	10.24	10.24	10.24

Notes:

1. The above results for the quarter ended 31st December 2013, which have been subjected to a "Limited Review" by the statutory auditors of the company, as per the listing agreements with the stock exchanges have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 14.02.2014 .

2. The Company has two business segments (1) Manufacture and sale of steel forgings. (2)Land and Development described as "Other Operating Income".

3. Number of complaints from share holders received during the quarter - 2 and disposed off during the quarter - 2 . There were no pending complaints at the beginning or end of the quarter.

4. STANDALONE STATEMENT OF ASSETS AND LIABILITIES (RS. IN MILLIONS)

Sl. No .	Particulars	As at 31.12.2013
		Unaudited
A	Equity and Liabilities
1	Shareholders' Fund
	(a) Share Capital	324.355
	(b) Reserves & Surplus	(338.261)
	(c) Money Received against Share Warrents
	Sub-Total (Shareholders Fund)	(13.906)
2	Share Application Money Pending Allotment	0.000
3	Minority Interest*	0.000
4	Non- current liabilities
	(a) Long-term borrowings	657.011
	(b) Deferred Tax liabilities (Net)	0.000
	(c) Other Long term liabilities	0.000
	Sub-Total : Non-Current Liabiities	657.011
5	Current Liabilities
	(a) Short term borrowings	480.046
	(b) Trade payables	330.684
	(c) Other current liabilities	428.671
	(d) Short term provisions	2.257
	Sub-Total : Current Liabiities	1241.658
	Total : Equity and Liabiities	1884.763
B 1.	ASSETS
	Non-current assets
	(a) Fixed assets	1005.771
	(b) Goodwill on Consolidation*
	(c) Non-current investments	47.106
	(d) Deferred tax assets (net)
	(e) Long-term loans and advances	78.651
	(f) Other non-current assets	160.632
	Sub-Total : Current Liabiities	1292.160
2.	Current assets
	(a) Current investments	0.000
	(b) Inventories	147.773
	(c) Trade receivables	2714..83
	(d) Cash and Bank Balances	6.947
	(e) Short-term loans and advances	21.752
	(f) Other current assets	144.648
	Sub-Total : Current Liabiities	592.603
	TOTAL	1884.763

5. SEGMENT WISE REVENUE, RESULTS CAPITAL EMPLOYED CLAUSE 41 OF THE LISTING AGREEMENT.

Particulars	Quarter		Six Months
	Ended 31.12.2013 Unaudited	Ended 30.09.2013 Unaudited	Ended 31.12.2013 Unaudited
Segment Revenue
Forgings	215.327	198.533	413.860
Land and Development	0.000	78.938	78.938
Total Revenue	215.327	277.471	492.798
Segment Results
Profit/(Loss) on forgings	(35.897)	(50.458)	(89.355)
Profit/(Loss) Land and Development	0.000	75.938	78.938
Net Profit/ Loss before Interest	(35.897)	25.480	(10.417)
Interest Cost	39.769	43.297	83.066
Other Income	3.721	3.103	6.824
Previous year tax paid/Provision	0.000	0.000	0.000
Net Profit / (Loss)	(71.945)	(14.714)	(86.659)
Capital Employed
Forgings	604.200	679.265	604.200
Land	100.318	100.318	100.318
Total	704.518	779.583	704.518

6. Provision for Taxation if required, will be made in the year end.

7. There has been no stoppage of operations in the Company and orders from Customers continue to flow in. The Management is taking steps to address the financial requirements of the Company and is confident of addressing the same and move to profitable operations. The Current Asset position will be strengthened once the Company generates profits from operations. The Management is confident of resolving the issues and hence prepared the financial statement on going concern basis.

8. The Management is taking steps to remit all statutory dues at the earliest.

9. Figures have been regrouped/rearranged wherever necessary.

CONTINGENT LIABILITIES:

PARTICULARS	30.06.2013 (Rs. In Millions)	30.06.2012 (Rs. In Millions)
Claims against the company not acknowledged as debt;
E.S.I under Appeal	0.208	0.208
Demands raised by SIPCOT for the Leasehold	1.301	1.301
Demand from Income Tax	7.560	7.560
Demand from Central Excise and service tax	4.603	5.504
Guarantees given to;
Foreign Bank (for credit limits of subsidiary company)	18.363	18.363
Bank against the loan taken by a Domestic company	65.000	65.000
Other money for which the company is contingently liable
For factoring (SBI Global Factors Limited )	0.000	7.592

FIXED ASSETS

· Land

· Land (Leasehold )

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipments

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.59.95
UK Pound	1	Rs.99.36
Euro	1	Rs.82.15

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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

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

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

RATING EXPLANATIONS

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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