MIRA INFORM REPORT

Report Date :

25.04.2014

IDENTIFICATION DETAILS

Name :	TECHNOCRAFT INDUSTRIES (INDIA) LIMITED
Registered Office :	"Technocraft House", A-25, MIDC, Marol Industrial Area, Road No. 3, Opposite ESIS Hospital, Andheri (East), Mumbai- 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.10.1992
Com. Reg. No.:	11-069252
Capital Investment / Paid-up Capital :	Rs.315.268 Millions
CIN No.: [Company Identification No.]	L28120MH1992PLC069252
TAN No.: [Tax Deduction & Collection Account No.]	MUMT09029G
PAN No.: [Permanent Account No.]	AAACT2724P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturers, Exporter and Importer of Drum Closure, Yarn, Power and Garments Pipe.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 19100000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is a well-established company having satisfactory track record. Financial position of the company seems to be good. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A+ (Letter of Credit)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	November 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY

Name :	Mr. Sushil Bhale
Designation :	General Manager (Finance)
Contact No.:	91-9820064213
Date :	22.04.2014

LOCATIONS

Registered Office / Corporate Office :	"Technocraft House", A-25, MIDC, Marol Industrial Area, Road No. 3, Opposite ESIS Hospital, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-40982345/40982222/4092202
Fax No.:	91-22-28356559/28367037
E-Mail :	rajesh@technocraftgroup.com technocraft@technocraftgroup.com
Website :	http://www.technocraftgroup.com
Area :	1000 sq. ft.
Location :	Owned
Factory 1:	M-6, Additional MIDC, Murbad, District Thane – 421 401, Maharashtra, India
Tel. No.:	91-2524-222646/ 48
Fax No.:	91-2524-222335
E-Mail :	ajaykarelia@technocraftgroup.com
Factory 2 :	Drum Closure: Plot No. C-5, MIDC Murbad Industrial Area, District Thane – 421 401, Maharashtra, India
Tel. No.:	91-2524-223220/ 222380/ 222278
Fax No.:	91-2524-222378
E-Mail :	bisharma@technocraftgroup.com
Factory 3 :	Pipe and Scaffoldings: Plot No. 4/1, MIDC Murbad, District Thane – 421 401, Maharashtra, India
Tel. No.:	91-2524-222823/ 222676/ 222678
Fax No.:	91-2524-222013/ 224514
E-Mail :	anilsharma@technocraftgroup.com
Factory 4 :	Yarn, Power and Garment: Village Dhanivali, Murbad, District Thane – 421 401, Maharashtra, India
Tel. No.:	91-2524-222941 to 45
Fax No.:	91-2524-222946
E-Mail :	techno_yarn@vsnl.net danube@technocraftgroup.com
Overseas Office :	Located At: · United Kingdom · Poland · Hungary · Germany · Australia

DIRECTORS

As on 31.03.2013

Name :	Mr. Madhoprasad Saraf
Designation :	Chairman
Name :	Mr. Sharad Kumar Saraf
Designation :	Managing Director
Date of Birth / Age:	66 Years
Date of Appointment :	28.10.1992
Experience :	41 Years
Name :	Mr. S.M. Saraf
Designation :	Managing Director
Date of Birth / Age:	67 Years
Date of Appointment :	28.10.1992
Experience :	40 Years
Name :	Mr. Atanu Choudhary
Designation :	Whole time Director
Name :	Mr. S.B. Agarwal
Designation :	Independent Director
Qualification :	M.Com, M.A. (Eco .), FCA, LLB
Name :	Mr. Ganesh Kumar Gupta
Designation :	Independent Director
Date of Birth / Age:	09.12.1952
Date of Appointment :	28.02.2006
Qualification :	Graduate
DIN No.:	00024567
Name :	Mr. Anand Didwania
Designation :	Independent Director
Qualification :	B.Sc.
Name :	Mr. Pankaj Toprani
Designation :	Independent Director
Date of Birth / Age:	28.06.1955
Date of Appointment :	25.06.2009
Qualification :	CA, CS, LLB
DIN No.:	02690151

KEY EXECUTIVES

Name :	Mr. Navneet Kumar Saraf
Designation :	Chief Operating Officer
Date of Birth/Age :	31 Years
Qualification :	B.E.(Mech.)
Experience :	11 Years
Date of Appointment :	23.12.2006
Name :	Mr. Ashish Kumar Saraf
Designation :	Chief Financial Officer
Date of Birth/Age :	28 Years
Qualification :	C.A. (Inter)
Experience :	9 Years
Date of Appointment :	23.12.2006
Name :	Mr. Subhash Khandelwal
Designation :	President Marketing
Name :	Mr. Manoj Jain
Designation :	Company Secretary and Compliance Officer

SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	23636562	74.97
Sub Total	23636562	74.97
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	23636562	74.97
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	10712	0.03
Insurance Companies	16383	0.05
Foreign Institutional Investors	1508000	4.78
Sub Total	1535095	4.87
(2) Non-Institutions
Bodies Corporate	1693386	5.37
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2353792	7.47
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1889988	5.99
Any Others (Specify)	417927	1.33
Non Resident Indians	32352	0.10
Foreign Corporate Bodies	385575	1.22
Sub Total	6355093	20.16
Total Public shareholding (B)	7890188	25.03
Total (A)+(B)	31526750	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)	31526750	0.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporter and Importer of Drum Closure, Yarn, Power and Garments Pipe.

Products :

Product Description	Item Code No. (ITC Code)
Flanges and Bungs	83099020
Steel Pipes	73061000
Cotton Yarn	52030000
Knitted Products	6109000

Exports :

Products :

• Yarn
• Drum Closure Pipe
• Scaffolding

Countries :

• China
• Dubai
• Germany
• USA
• France

Products :

• Machinery
• Raw Material

Countries :

• France
• Germany
• USA
• China

Terms :

Selling :

L/C, Credit and DP

Purchasing :

L/C and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
Flanges and Bungs	Pieces	N.A	100,000,000.00
Capseals	Pieces	N.A	2,500,000.00
Clamps	Pieces	N.A	20,000,000.00
Pipes	M.T.	N.A	55,000.00
Yarn	Spindles	61,104.00	61,104.00
Garments (T-Shirts)	Pieces	100,000,000.00	100,000,000.00

Particulars	Unit	Actual Production
Flanges	Pieces	43,418,842.00
Bungs	Pieces	39,037,007.00
Clamps	Pieces	561,435.00
Gasket	Pieces	2,956,150.00
Canseal Closures	Pieces	605,800.00
Bolt/Base Plate	Pieces	1,149,000.00
Plugs	Pieces	8,972,900.00
Pipes	M.T.	11,525.33
Yarn	M.T.	9,741.86
Garment (T-Shitrt)	Pieces	2,217,446.00
Fabric	Kgs.	547,589.00

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

2000 (Approximately)

Bankers :

• Bank of India, Andheri Branch, Mumbai, Maharashtra, India
• IDBI Bank Limited
• HDFC Bank
• CITI Bank NA

Facilities :

Multiple Banking

They enjoy consortium total facility of fund and non-fund = Rs.1520.000 Millions

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Bank of India (Term of Repayment-5 Years) (Rate of Interest-12.5% P.A)	48.987	69.555
Short Term Borrowings
Bank Of India - CC Account	21.470	35.955
BOI PCFC $ A/c	235.625	349.943
CITI Bank PCFC Account	148.606	165.074
HDFC PCFC A/c 1,728.62 1,491.28	172.862	149.128
IDBI Overdraft A/c	8.819	15.142
IDBI PCFC A/c	35.676	50.569
Total	672.045	835.366

Long Term Borrowings

Term Loan From Bank of India Is Secured Against Hypothecation of Plant and Machinery, Equipment Purchased Out of Term Loan And Also Against Equitable Mortgage of Specific immovable Properties of Yarn Division.

Banking Relations :	--
Auditors :
Name :	M.L. Sharma and Company Chartered Accountants
Address :	107, First Floor, Chartered House, 297/299, Dr. Cawasji Hormashi Street, Marine Lines, Mumbai- 400 002, Maharashtra, India
Subsidiary Company / Fellow Subsidiary :	Technocraft International Ltd, U.K. Technocraft Trading, Poland Technocraft Australia Pty Limited Technosoft Engineering Projects Limited (Formerly known as Technosoft Information Technologies (I) Limited) Impact Engineering Solutions Inc. CAE Systems GMBH Anhui Reliable Steel Tec. China
Associates :	Ashrit Holdings Limited B. M. S. Industries Limited M.D .Saraf Securities Private Limited
Joint Venture :	Technocraft Tabla Formwork System Private Limited
Co- Venturer :	Tabla Construction Systems

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31526750	Equity Shares	Rs.10/- each	Rs.315.268 Millions

1) The Company has only one class of Equity Shares having a par value of 10 per share. Each shareholder is eligible for one vote per share.

2) The reconciliation of the number of share outstanding at the yearend is set out below :

Equity Shares	Number of Shares	Rs in Millions
Shares outstanding at the beginning of the year	31526750	315.268
Shares issued during the year	-	-
Shares bought back during the year	-	-
Shares outstanding at the end of the year	31526750	315.268

3) The Details of Shareholders Holding more than 5% Shares is set out below :

Name of Shareholder	Number of Shares	% holding
Shakuntala Saraf	6739512	21.37%
Shantidevi Saraf	2963471	9.40%
Sharad Kumar Madhoprasad HUF	2874946	9.12%
Sudarshan Kumar Saraf	8750652	27.76%

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	315.268	315.268	315.268
(b) Reserves & Surplus	4458.603	3925.792	3780.906
(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)	4773.871	4241.060	4096.174
(3) Non-Current Liabilities
(a) long-term borrowings	48.987	69.555	97.236
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	10.102	9.968	9.216
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	59.089	79.523	106.452
(4) Current Liabilities
(a) Short term borrowings	838.857	765.811	1450.520
(b) Trade payables	276.937	276.897	191.635
(c) Other current liabilities	278.916	264.070	168.315
(d) Short-term provisions	117.999	72.002	48.593
Total Current Liabilities (4)	1512.709	1378.780	1859.063
TOTAL	6345.669	5699.363	6061.689
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1111.342	1294.020	1478.420
(ii) Intangible Assets	4.286	16.748	25.429
(iii) Capital work-in-progress	1.544	16.979	29.259
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	761.575	575.971	820.878
(c) Deferred tax assets (net)	63.267	44.081	28.214
(d) Long-term Loan and Advances	45.613	17.026	25.377
(e) Other Non-current assets	34.179	120.979	103.005
Total Non-Current Assets	2021.806	2085.804	2510.582
(2) Current assets
(a) Current investments	878.417	0.000	0.000
(b) Inventories	1044.879	915.733	1441.612
(c) Trade receivables	1751.465	1365.188	1041.084
(d) Cash and cash equivalents	123.860	105.658	520.750
(e) Short-term loans and advances	125.844	849.673	86.149
(f) Other current assets	399.398	377.307	461.512
Total Current Assets	4323.863	3613.559	3551.107
TOTAL	6345.669	5699.363	6061.689

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	6479.617	5520.701	4720.632
		Other Income	219.314	185.728	169.410
		TOTAL (A)	6698.931	5706.429	4890.042
Less	EXPENSES
		Cost of Material Consumed	3281.471	3055.195	2769.101
		Purchase For Trading	332.158	155.194	52.418
		Changes In Inventories of Stock	41.257	199.673	(303.276)
		Employees Benefit Expenses	335.755	336.928	285.031
		Amortisation of Goodwill	12.192	12.192	12.192
		Other Expenses	1413.598	1289.159	1178.100
		TOTAL (B)	5416.431	5048.341	3993.566
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1282.500	658.088	896.476
Less	FINANCIAL EXPENSES (D)		60.074	72.233	78.963
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1222.426	585.855	817.513
Less/ Add	DEPRECIATION/ AMORTISATION (F)		264.351	292.044	351.550
	PROFIT BEFORE TAX (E-F) (G)		958.075	293.811	465.963
Less	TAX (H)		310.804	110.765	131.593
	PROFIT AFTER TAX (G-H) (I)		647.271	183.046	334.370
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		642.839	496.434	245.938
Less	APPROPRIATIONS
		Transfer to General Reserve	64.500	0.000	8.000
		Proposed Dividend	63.054	31.527	31.527
		Dividend Distribution Tax	10.716	5.114	5.236
	BALANCE CARRIED TO THE B/S		1112.571	642.839	535.545
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4980.607	3951.932	3223.931
	TOTAL EARNINGS		4980.607	3951.932	3223.931
	IMPORTS
		Raw Materials	472.877	37.909	77.159
		Stores & Spares	3.219	2.271	1.876
		Packing Materials	0.000	0.719	0.000
	TOTAL IMPORTS		476.096	40.899	79.035
	Earnings Per Share (Rs.)		20.53	5.81	10.61

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	9.66	3.21	6.84
Net Profit Margin (PBT/Sales)	(%)	14.79	5.32	9.87
Return on Total Assets (PBT/Total Assets}	(%)	17.61	5.97	9.22
Return on Investment (ROI) (PBT/Networth)		0.20	0.07	0.11
Debt Equity Ratio (Total Debt /Networth)		0.19	0.20	0.38
Current Ratio (Current Asset/Current Liability)		2.86	2.62	1.91

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	315.268	315.268	315.268
Reserves & Surplus	3780.906	3925.792	4458.603
Net worth	4096.174	4241.060	4773.871
long-term borrowings	97.236	69.555	48.987
Short term borrowings	1450.520	765.811	838.857
Total borrowings	1547.756	835.366	887.844
Debt/Equity ratio	0.378	0.197	0.186

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	4,720.632	5,520.701	6,479.617
		16.948	17.369

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	4,720.632	5,520.701	6,479.617
Profit	334.370	183.046	647.271
	7.08%	3.32%	9.99%

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	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)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	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

LISTING DETAILS:

CASE DETAILS

Lodging No.:-

APPL/724/2010

Filing Date:-

21/10/2010

Reg. No.:-

APP/151/2011

Reg. Date:-

25/02/2011

Main Matter

Lodging No.:-

NMSL/1300/2010

Reg No.:-

NMS/1300/2010

Petitioner :	IVR CONSTRUCTIONS LIMITED	Respondent:-	TECHNOCRAFT INDUSTRIES (INDIA) LIMITED
Petn. Adv.:	KALPESH JOSHI (0)	Resp. Adv.:-	CONSULTA JURIS (0)

District:- OUTSIDE MAHARASHTRA

Bench:- DIVISION

Status:- Admitted(Unready) Category:- APPEALS

Last Date:- 11/01/2011 Stage:- APPEALS FOR ADMISSION - FRESH

[ORIGINAL SIDE MATTERS]

Last Coram:- HON'BLE THE CHIEF JUSTICE

HON'BLE SHRI JUSTICE S.J. VAZIFDAR

UNSECURED LOAN:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Common Wealth Bank P.C.F.C $ A/C	78.913	0.000
ING Vysya Bank $ P.C.F.C. A/C.	136.886	0.000
Total	215.799	0.000

FINANCIAL HIGHLIGHTS

PERFORMANCE

FY 2012-13 was a tremendous year in Company history. The Company achieved its best results. The gross sale and other income for the financial year were Rs.6698.931 Millions against Rs.5706.429 Millions for the previous financial year an increase of 17%. Total EBIDITA for the year stood at Rs.1282.500 Millions against Rs.658.088 Millions for the previous year, an increase of 95%. PAT stood as Rs.647.271 Millions as compared to Rs.183.046 Millions previous year, an increase of 254% On Consolidation basis the gross sale and other income for the financial year were Rs.8323.369 Millions against Rs.6730.212 Millions for the previous financial year an increase of 24%. Total PAT for the year stood at Rs.742.542 Millions against Rs.152.678 Millions for the previous year an increase of 386%.

OVERVIEW

For the Indian economy, FY13 was a challenging year. GDP growth declined to 5% from 6.2% in the previous year on account of high fiscal deficit, high inflation, worsening current account deficit and slowdown in economic growth. During the second half of FY13, the government intervened with some policy reforms to stabilize the economy and also took steps to attract foreign direct investment and market based price for petro products to improve current account deficit. However, concern exists over containing the high current account deficit, prevailing supply side constraints and inadequate infrastructure investment. Though the long term prospects of the economic look promising, cautions optimism is the feeling in the short to medium term.

FUTURE PROJECT

The company successfully acquired a very interesting Engineering Design Services company located in Calgary, Canada specializing in Engineering, Procurement, Construction and Management Services in oil and gas sector. The company has been acquired as a subsidiary of our 100% subsidiary company Technosoft Information Technology Limited. This acquisition will add great value to Technosoft, which was hitherto absent in oil and gas sector. The Canadian company Swift Engineering Inc. has a turnover of approximately Rs.500.000 Crores with a very healthy bottom line of approximately Rs.100.000 Millions. They expect this turnover to go upto Rs.2000.000 Millions by 31st March 2014 with a much better bottom line. This acquisition will make Technosoft a world class Engineering Design Services Company.

The Company has already begun the project work for installing and commissioning of a 5 MW Solar Power Plant to be located in Solapur, Maharashtra. The plant will be commissioned by 31st March 2014, so that The Company will be entitled to 50% extended rate of depreciation this year and balance 50% next year. Hence they expect to save our tax burden for the next two years. They propose to follow the REC route and expect an IRR of over 30%.

Apart from the above major projects, you company's in house growth is ongoing. In every division they are modernizing, upgrading technology and cutting costs.

UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER AND HALF YEAR ENDED 30^TH DECEMBER 2013

	Particulars	Quarter Ended ( Unaudited)	Quarter Ended (Unaudited)	Nine Months Ended (Unaudited)
		31.12.2013	30.09.2013	31.12.2013
1	Net Sales/Income from operations (Net of Excise Duty)	1706.769	1721.541	4739.176
	Other Operating Revenue	154.716	135.726	427.251
	Total Income	1861.485	1857.268	5166.427
2	Expenditure
(a)	Cost of Materials Consumed	971.702	844.116	2554.853
(b)	Purchase of Stock-in-trade	132.083	129.300	283.359
(c)	Change in Inventories of Finished goods, WIP & Stock in trade	(20.911)	11.576	(81.487)
(d)	Employee benefits expense	98.089	100.039	294.447
(e)	Depreciation and Amotisation expenses	59.595	56.481	169.539
(f)	Other expenses	4,36.655	398.928	1153.736
	Total Expenses	1677.213	1540.440	4374.447
3	Profit From Operation before Other Income, Finance Cost & Exceptional Items (1-2)	184.272	316.827	791.980
4	Other Income	34.958	61.252	188.213
5	Profit from ordinary activities before Finance cost & Exceptional Items (3+4)	219.230	378.079	980.193
6	Finance Cost	10.213	12.594	30.527
7	Profit From Operation after Finance Cost but before Exceptional Items (5-6)	209.017	365.485	949.666
8	Exceptional items(Forex diff. on conversion)	(2.553)	47.246	109.027
9	Exceptional items(Refer Note No 5)	(96.519)	-	(6.519)
10	Profit from Ordinary activities before tax (7+8+9)	109.945	412.731	962.174
11	Tax expenses	36.005	133.669	308.171
12	Net Profit from ordinary activities after tax (10-11)	73.940	279.062	654.003
13	Extraordinary items (net of Tax expenses)
14	Net Profit (+) / Loss (-) for the period (12-13)	73.940	279.062	654.003
15	Share of profit/(Loss) of Associates	-	-	-
16	Minority Interest	-	-	-
17	Net Profit/(Loss) after taxes, Minority Interest and Share of Profit/(Loss) of Associates (14+15+16)	73.940	279.062	654.003
18	Paid-up equity share capital (FV of Rs.10 per share)	315.268	315.268	315.268
19	Reserves excluding revaluation reserves as per Balance sheet of Previous accounting Year	5068.080	4994.139	5068.080
20	Earnings Per Share (EPS)
	Basic and diluted EPS before and after Extraordinary items for the period for the year to date and the previous year not to be annualised)	2.34	8.85	20.74
1	Public Shareholding
	- Number of Shares	7,890188	7,890,188	7,890,188
	- Percentage of shareholding	25.03%	25.03%	25.03%
2	Promoters and promoter group Shareholding
	a) Pledged/ Encumbered
	- No. of Shares	NIL	NIL	NIL
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	NA	NA	NA
	- Percentage of shares (as a % of the total share capital of the Company	NA	NA	NA
	b) Non- Encumbered
	- No. of Shares	23,636,562	23,636,562	23,636,562
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%	100.00%
	- Percentage of shares (as a % of the total share capital of the Company)	74.97%	74.97%	74.97%

Notes

1. The above Unaudited Standalone financial results for the quarter ended December 31, 2013 were reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on January 22, 2014.

2. The Statutory Auditors of the Company have carried out a limited Review of the Unaudited Financial Results for the quarter ended on Dec. 31, 2013

3. The Company is engaged in 5 segments 1)Drum Closure Division 2) Scaffolding Division 3) Yarn Division 4) Power Division 5) Garment Division

4. Book value per share as on 31.12.2013 is Rs.170.75

5. The Company has exposure to National Spot Exchange Limited (NSEL) of Rs.193.038 Millions. NSEL has not been able to adhere to its payment obligation over the past few months. The Company has perused legal action against the NSEL and others by filing writ petition in Bombay High Court and Criminal Complaint in Economic Offences Wing (EOW). Pending final outcome which is uncertain, the Company has made Provision for an amount of Rs.96.519 Millions ( 50% of total exposure as on 31.12.2013) in the respect of the quarter ended 31st December, 2013, which is disclosed under the head “ Exceptional Items”

6. Previous Years/Quarters figures have been regrouped/rearranged wherever necessary.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10006493	29/05/2006	535,200,000.00	Bank of India Limited	Oriental Building, Espanade Road, Mumbai, Maharashtra, India	A01527100
2	10007771	29/05/2006	250,000,000.00	BANK OF INDIA LIMITED	Oriental Building, Espanade Road, Mumbai, Maharashtra - , India	A01527050
3	80056897	05/01/2010 *	180,000,000.00	HDFC BANK LIMITED	HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	A77360139
4	90148777	02/07/2004	251,380,000.00	BANK OF INDIA	Overseas Branch; Mazzanine Floor, Bank Of India Building; 70/80; M.G. Road; Fort, Mumbai, Maharashtra - 400023, India	-
5	80039756	05/01/2010 *	380,000,000.00	CITIBANK N.A.	Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra - 400051, India	A77358067
6	80057853	31/03/2010 *	1,075,800,000.00	Bank of India	Mumbai Overseas Branch, 70/80 M G Road , 1st Floor , Fort, Mumbai, Maharashtra - 400001, India	A82561689
7	80047980	05/01/2010 *	220,000,000.00	IDBI Bank Limited	47,Opus Centre, MIDC, Central Road, Andheri East, Mumbai, Maharashtra - 400093, India	A77203859
8	80004947	18/09/2010 *	1,306,300,000.00	Bank of India	Mumbai Overseas Branch, 70 - 80, Mahatma Gandhi Road, Mezzaine Floor, Mumbai, Maharashtra - 400001, India	A96108683

*Date of modification charge

FIXED ASSETS:

· Land and Building

· Plant and Machinery

· Furniture and fixtures

· Navision Software

· Computer Software

· Car Parking Space

· Staff Quarters

· Worker's Quarter

NEWS:

PERFORMANCE STATEMENT FROM THE MANAGING DIRECTOR

Dear Technocraft Members,

It gives me great pleasure to address you after a long time. I am sure you must have seen the performance of The company for the year 2012-13, which was published in the media on 24th May 2013 and the same has also been reported to NSE and BSE as well as on company website.

You can see from the graph appended that the company has been consistently improving results thereby adding to share value. We are a technology driven company serving sophisticated export markets. Nearly 95% of our production is exported around the world.

Presently we have approximately 100 acres of fully developed industrial land in Murbad, about 90 km from Mumbai. We have four stand alone units located close to each other. These include the world’s largest Drum Closure manufacturing facility, facility to produce Galvanized Steel Tubes, Scaffolding, Formwork, Transmission Line Towers and infrastructure custom built structures. We also have a large fully integrated Textile Complex consisting of a very modern 61,000 spindle Yarn Mill, fully integrated knitwear production facility and a 15 MW Thermal Power Plant. Our power plant also supplies power to all our engineering units.

About three years back we have also promoted a Skill Development Center in the name of NTTF Training Center located on a picturesque 10 acre plot. It is a world class facility imparting three year Diploma in Mechanical Engineering field and also training technicians for several corporate. The Training Center has well equipped and modern academic block, hostels for complete student population and large playground for almost all types of sports.

I would welcome visit from any of our shareholders to see our facilities. Kindly do let me know the plans and I will be happy to make necessary arrangements.

I am pleased to inform you that our 100% owned subsidiary company in China Anhui Reliable Steel Technology Co. Ltd. is now doing quite well. It is successfully producing and exporting Scaffolding components that we do not manufacture in India and also production of Drum Closures has just started.

About three months back we have successfully acquired a very interesting Engineering Design Services company located in Calgary, Canada specializing in Engineering, Procurement, Construction and Management Services in oil and gas sector. The company has been acquired as a subsidiary of our 100% subsidiary company Technosoft Information Technology Ltd. This acquisition will add great value to Technosoft, which was hitherto absent in oil and gas sector. The Canadian company Swift Engineering Inc. has a turnover of approximately Rs.500.000 Millions with a very healthy bottom line of approximately Rs.100.000 Millions. We expect this turnover to go upto Rs.2000.000 Millions by 31st March 2014 with a much better bottom line. This acquisition will make Technosoft a world class Engineering Design Services Company.

We have already begun the project work for installing and commissioning of a 5 MW Solar Power Plant to be located in Solapur, Maharashtra. The plant will be commissioned by 31st March 2014, so that The company will be entitled to 50% extended rate of depreciation this year and balance 50% next year. Hence we expect to save our tax burden for the next two years. We propose to follow the REC route and expect an IRR of over 30%.

Apart from the above major projects, our in house growth is ongoing. In every division we are modernizing, upgrading technology and cutting costs.

APRIL 2013 - ACQUIRED SWIFT ENGINEERING, INC.

Technocraft has recently acquired a majority controlling stake in Swift Engineering Inc., a company headquartered in Calgary, Canada, which is in the business of providing Engineering, Procurement and Construction Management services to the oil and gas industry in Alberta, British Columbia and Saskatchewan, since 2003. With this acquisition, Technocraft is now poised to make a quantum growth in the Engineering Services sector, managed by its subsidiary Technosoft.

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.61.07
UK Pound	1	Rs.102.77
Euro	1	Rs.84.49

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.