MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	LANCO INDUSTRIES LIMITED
Registered Office :	Rachagunneri Village, Srikalahasthi Mandal, Chittoor District – 517 641, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.11.1991
Com. Reg. No.:	01-013391
Capital Investment / Paid-up Capital :	Rs.397.636 millions
CIN No.: [Company Identification No.]	L74999AP1991PLC013391
TAN No.: [Tax Deduction & Collection Account No.]	HYDL00513C
PAN No.: [Permanent Account No.]	AAACL4108M
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject’s main business is manufacturing and selling pipes, subject is also manufacturing and selling Cement and producing Pig Iron and LAM Coke for captive use.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20%! Equities came in second with annualized return of 15.5%! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs.10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities: A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	July 15, 2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	July 15, 2014

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Kodandapani
Designation :	Assistant General Manager
Contact No.:	91-8578-286650
Date :	25.07.2014

LOCATIONS

Registered Office/ Factory :	Rachagunneri Village, Srikalahasthi Mandal, Chittoor District – 517 641, Andhra Pradesh, India
Tel. No.:	91-8578-286650-55
Fax No.:	91-8578-286657
E-Mail :	gdsaini@lancoindustries.com info@lancoindustries.com accounts@lancoindustries.com
Website :	http://www.lancoindustries.com
Location :	Owned
Marketing Head Office :	No.148/150 (Old No. 98/99), Luz Church Road, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-24674900
Fax No.:	91-44-24995229
E-Mail :	homarketing@lancoindustries.com

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Mayank Kejriwal
Designation :	Managing Director
Name :	Mr. G. Maruthi Rao
Designation :	Director
Name :	Mr. Gouri Shankar Rathi
Designation :	Director
Date of Birth/Age :	09.01.1950
Qualification :	B.Com (Hons.), FCS, LLB
Special Expertise :	Expertise in general Administrative management and Marketing.
Date of Appointment :	08.06.2005
Name :	Mr. S.Y. Rajagopalan
Designation :	Director
Name :	Mr. R.K. Khanna
Designation :	Director
Date of Birth/Age :	19.10.1952
Qualification :	Graduate in Management, Finance, Certificate in Infrastructure and Housing Finance from USA
Special Expertise :	Expertise in Financial Management and Infrastructure development.
Date of Appointment :	09.02.2013
Directorship in other Public Limited Companies :	Shivshahi Punaravasan Prakalp Limited, Mumbai
Name :	Mr. L. Madhusudhan Rao
Designation :	Director
Date of Birth/Age :	08.01.1966
Qualification :	M. Tech. and M.S.
Special Expertise :	Techno-Economic Expert
Date of Appointment :	01.11.1991
Name :	Mr. G. Bhaskara Rao
Designation :	Director
Date of Birth/Age :	01.06.1954
Qualification :	M.E.
Special Expertise :	Techno-Economic Expert
Date of Appointment :	01.11.1991
Directorship in other Public Limited Companies :	· Aeolipile Engineering and Manufacturing Limited · Fourneyron Engineering and Manufacturing Limited · Lanco Infratech Limited · Lanco Kanpur Highways Limited · Lanco Power Limited · Lanco Group Limited · Lanco Hydro Power Limited · Lanco Anpara Power Limited · Lanco Babandh Power Limited · Lanco Thermal Power Limited · Lanco Vidarbha Thermal Power Limited · Lanco Tanjore Power Company Limited
Name :	Mr. L. Sridhar
Designation :	Director
Date of Birth/Age :	14.06.1968
Qualification :	BE (Civil) and M.S.
Special Expertise :	Expert in Construction Management
Date of Appointment :	29.05.2003
Name :	Mr. A. Joseph Kumar
Designation :	Director (Nominee of IDBI)
Name :	Mr. K. Rajendra Prasad
Designation :	Director (Nominee of APIDC)

KEY EXECUTIVES

Name :	Mr. Kodandapani
Designation :	Assistant General Manager
Name :	Mr. G.D. Saini
Designation :	Chief Financial Officer and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	20193178	50.78
Sub Total	20193178	50.78
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	20193178	50.78
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3625	0.01
Financial Institutions / Banks	24225	0.06
Central Government / State Government(s)	244200	0.61
Foreign Institutional Investors	9700	0.02
Sub Total	281750	0.71
(2) Non-Institutions
Bodies Corporate	8467406	21.29
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	6094862	15.33
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	3852959	9.69
Any Others (Specify)	873440	2.20
Non Resident Indians	751956	1.89
Clearing Members	120484	0.30
Trusts	1000	0.00
Sub Total	19288667	48.51
Total Public shareholding (B)	19570417	49.22
Total (A)+(B)	39763595	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)	39763595	0.00

BUSINESS DETAILS

Line of Business :

Subject’s main business is manufacturing and selling pipes, subject is also manufacturing and selling Cement and producing Pig Iron and LAM Coke for captive use.

Products :

ITC Code No.	Product Description
7303.00	D I Pipes
2502.29	Cement

Imports :

Products :

· Raw Materials

Countries :

· China

· Germany

· Australia

· UK

· USA

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

500 (Approximately)

Bankers :

· ICICI Bank Limited

· HDFC Bank Limited

· IDBI Bank Limited

· Standard Chartered Bank

· Punjab National Bank

· Bank of India

· Andhra Bank

· Yes Bank

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
From Banks
Rupee Term loans	NA	137.500
External Commercial Borrowing	NA	1362.930
SHORT TERM BORROWINGS
From Banks
Working Capital Loans – from Banks
Rupee Loan	NA	1385.209
Foreign Currency Loan	NA	1381.873
Total	NA	4267.512

Notes:

LONG TERM BORROWINGS

Terms of Repayment and rate of interest:

Rupee Term Loan of Rs.187.500 millions is repayable in 6 Quarterly installments of Rs.31.250 millions each and it carries an interest @ 11.82% p.a. payable monthly.

Rupee Term Loan of Rs.112.500 millions repayable in 12 Quarterly installments of Rs.9.375 millions each and it carries an interest @ 13.50% p.a. payable monthly.

Rupee Term Loan of Rs.25.000 millions repayable in 1 Quarterly installments of Rs.25.000 millions each and it carries an interest @ 11.75% p.a. payable monthly.

Foreign Currency loan of US$ 180 Lakhs (Rs.977.400 millions) is repayable in 15 half yearly installments of US$ 12 Lakhs starting from 15/09/2013 and carries an interest at LIBOR plus 4.3% p.a. payable half yearly.

Foreign Currency loan of US$ 100 Lakhs (Rs.543.000 millions) is repayable in 8 half yearly installments of US$ 5 lakhs on 22/11/2013, US$10 lakhs each on 22/5/2014, 22/11/2014, 22/5/2015, US$ 15 lakhs each on 22/11/2015, 22/5/2016, 22/11/2016 and US$ 20 lakhs on 22/5/2017 and carries an interest at LIBOR plus 3.927% p.a. payable half yearly. Sales tax Deferment – Rs.6.128 millions in 2014-15 and is interest free.

Nature of security:

Rupee term loans and Foreign Currency loan from Banks are secured by way of first pari-passu charge on the movable and immovable Fixed Assets of the company both present and future.

SHORT TERM BORROWINGS

Nature of Security and rate of interest

Working Capital facilities availed from banks are secured by hypothecation of raw materials, semi finished goods and finished goods, consumables, stores and spares, book debts, both present and future of the company and rank pari-passu among themselves and the rate of interest ranges from 10% to 12.5% p.a. and are payable on demand.

Banking Relations :	--
Auditors :
Name :	K.R. Bapuji and Company Chartered Accountants
Address :	Hyderabad, Andhra Pradesh, India
Solicitors :	Khaitan and Company
Associate Company (As on 31.03.2013) :	Electrosteel Castings Limited
Enterprise where other directors have significant influence or control (As on 31.03.2013) :	Lanco Infratech Limited*

*Mr. L. Madhusudhana Rao, Mr. L. Sridhar and Mr. G. Bhaskara Rao directors of the Company are interested in Lanco Infratech Limited.

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39763595	Equity Shares	Rs.10/- each	Rs.397.636 millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
53000000	Equity Shares	Rs.10/- each	Rs.530.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39763595	Equity Shares	Rs.10/- each	Rs.397.636 millions

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

Particulars	As at 31^st March, 2013
	No. of Shares	Amount (Rs. in millions)
Opening number of Shares Outstanding	39763595	397.636
Closing number of Shares Outstanding	39763595	397.636

Terms/rights attached to equity shares

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

No dividend has been recognized as distribution to equity shareholders for the year ended 31.03.2013.

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

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

Particulars	As at 31^st March, 2013
	No. of Shares (in Lakhs)	% holding
Equity shares with voting rights
Electrosteel Castings Limited	193.01	48.54
L. Madhusudhan Rao	22.85	5.75
G. Bhaskara Rao	22.85	5.75
L. Sridhar	22.83	5.74
L. Rajagopal	22.84	5.75

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	397.636	397.636	397.636
(b) Reserves & Surplus	1857.205	1540.051	1671.012
(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)	2254.841	1937.687	2068.648
(3) Non-Current Liabilities
(a) Long-term borrowings	1746.243	1506.558	1295.872
(b) Deferred tax liabilities (Net)	304.184	277.022	359.325
(c) Other long term liabilities	494.664	740.356	531.727
(d) Long-term provisions	29.064	14.668	11.668
Total Non-current Liabilities (3)	2574.155	2538.604	2198.592
(4) Current Liabilities
(a) Short term borrowings	2355.734	2767.082	3211.287
(b) Trade payables	1957.017	1047.990	1221.020
(c) Other current liabilities	945.162	737.274	689.252
(d) Short-term provisions	94.572	27.420	22.306
Total Current Liabilities (4)	5352.485	4579.766	5143.865
TOTAL	10181.481	9056.057	9411.105
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4347.003	4402.970	3100.903
(ii) Intangible Assets	7.542	10.768	14.018
(iii) Capital work-in-progress	200.423	170.164	631.389
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	558.622	652.020	703.201
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5113.590	5235.922	4449.511
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2367.514	2082.610	3187.700
(c) Trade receivables	1480.088	1194.271	1223.719
(d) Cash and cash equivalents	573.502	102.062	102.400
(e) Short-term loans and advances	265.199	138.525	207.602
(f) Other current assets	381.588	302.667	240.173
Total Current Assets	5067.891	3820.135	4961.594
TOTAL	10181.481	9056.057	9411.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations (net)	9893.956	8638.893	7870.002
		Other Income	72.406	100.243	84.212
		TOTAL (A)	9966.362	8739.136	7954.214
Less	EXPENSES
		Cost of materials consumed	5443.678	5687.104	5575.821
		Purchases of traded goods	550.370	103.837	70.566
		Changes in inventories of finished goods & work-in-progress	(144.022)	86.653	(401.645)
		Employee benefits expense	443.627	379.894	360.542
		Other expenses	2430.155	1868.891	1612.066
		TOTAL (B)	8723.808	8126.379	7217.350
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1242.554	612.757	736.864
Less	FINANCIAL EXPENSES (D)		548.961	604.180	578.610
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		693.593	8.577	158.254
Less/ Add	DEPRECIATION/ AMORTISATION (F)		279.428	221.842	199.933
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		414.165	(213.265)	(41.679)
Less	TAX (H)		27.162	(82.303)	(2.156)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		387.003	(130.962)	(39.523)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(15.547)	115.415	160.828
	PRIOR PERIOD ADJUSTMENT – TAXATION		NA	0.000	(5.890)
Less	APPROPRIATIONS
		General Reserve	NA	0.000	0.000
		Proposed Dividend including tax thereon	NA	0.000	0.000
	BALANCE CARRIED TO THE B/S		NA	(15.547)	115.415
	EARNINGS IN FOREIGN CURRENCY
		Sale of Carbon Credits	NA	22.477	95.170
		Compensation Received	NA	0.000	14.869
	TOTAL EARNINGS		NA	22.477	110.039
	IMPORTS
		Raw Materials	NA	1575.612	3288.506
		Stores & Spares	NA	116.436	138.237
		Capital Goods	NA	180.437	164.744
	TOTAL IMPORTS		NA	1872.485	3591.487
	Earnings / (Loss) Per Share (Rs.)		9.73	(3.29)	(0.99)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	3.88	(1.50)	(0.50)
Net Profit Margin (PBT/Sales)	(%)	4.19	(2.47)	(0.53)
Return on Total Assets (PBT/Total Assets}	(%)	4.15	(2.40)	(0.47)
Return on Investment (ROI) (PBT/Networth)		0.18	(0.11)	(0.02)
Debt Equity Ratio (Total Debt/Networth)		1.82	2.21	2.18
Current Ratio (Current Asset/Current Liability)		0.95	0.83	0.96

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	397.636	397.636	397.636
Reserves & Surplus	1671.012	1540.051	1857.205
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2068.648	1937.687	2254.841
Long-term borrowings	1295.872	1506.558	1746.243
Short term borrowings	3211.287	2767.082	2355.734
Total borrowings	4507.159	4273.640	4101.977
Debt/Equity ratio	2.179	2.206	1.819

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (net)	7870.002	8638.893	9893.956
		9.770	14.528

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (net)	7870.002	8638.893	9893.956
Profit	(39.523)	(130.962)	387.003
	(0.50%)	(1.52%)	3.91%

LOCAL AGENCY FURTHER INFORMATION

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

LITIGATION DETAILS:

CASE STATUS INFORMATION SYSTEM

CEA 91 / 2011	CEASR 1137 / 2011	CASE IS:PENDING
PETITIONER		RESPONDENT
COMMISSIONER OF CUSTOMS	VS	LANCO INDUSTRIES LIMITED
PET.ADV. :  SATHYARAM (SR SC FOR CB EXCISE)		RESP.ADV. : PRABHAKARA SASTRY
SUBJECT: CENTRAL EXCISE APPEAL		DISTRICT:  HYDERABAD
FILING DATE:   08-04-2011	POSTING STAGE :  FOR ADMISSION AND HEARING
REG. DATE    :   01-06-2011	LISTING DATE :  27-06-2011	STATUS   :  ADMIT
HON'BLE JUDGE(S):	V.V.S.RAO	RAMESH RANGANATHAN

Unsecured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Sales tax Deferment	NA	6.128
Total	NA	6.128

CORPORATE INFORMATION:

The company, incorporated under the Companies Act, 1956, in the year 1991, is engaged in the manufacture and supply of Ductile Iron Pipe as its core business with its domicile presence in the State of Andhra Pradesh, India. The company is a leading Public Utility Services company predominantly catering to the needs of Water Infrastructure Development. The company also produces Low Ash Metallurgical Coke and Power for captive consumption in its integrated complex. It also manufactures and supply Pig Iron and Cement, in the process. The company’s shares are listed on the National Stock Exchange Limited and the Bombay Stock Exchange Limited and the shares are traded regularly.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2013 (Rs. in Millions)
a) Guarantees given by banks on behalf of the Company	103.167
b) Bills discounted with banks	798.453
c) Outstanding Letter of Credits	--
d) Various demands raised, which in the opinion of the management are not tenable and are pending with various forums / authorities :
i) Sales Tax	136.476
ii) Excise, Custom Duty and Service Tax	39.568
iii) Income Tax	3.772

FIXED ASSETS:

Tangible Assets

· Land

· Leasehold Land

· Factory Building

· Non Factory Building

· Plant and Machinery

· Electrical Installation

· Office Equipment

· Furniture

· Vehicle

Intangible Assets

· Computer Software

WEBSITE DETAILS:

NEWS:

LANCO UNIT GRIFFIN GETS NOD FOR AUSTRALIAN COAL FACILITY

July 17, 2013

HYDERABAD: The Environmental Protection Authority of Western Australia has conditionally approved the development of a 15-million tonne coal handling berth at Bunbury Port proposed by Griffin Coal, a unit of Lanco Resources Australia Pty Limited.

Clearing the project with 12 conditions, the environment watchdog said Griffin Coal's proposal to develop a coal storage and loading facility at Berth 14 A at Burnbury Port, (175 kms from Perth) would be open for public comments till July 31 and the Environment Minister would take the final decision, according to a report by the EPA.

Griffin Coal proposes to develop coal storage and loading facilities at the Bunbury Port Inner Harbour. The berth would support the export of coal from Collie Basin, where the mines are located.

Griffin Coal, which was acquired by Lanco for AUD 730 million in March 2011, produced 4 million tonnes of coal last year. A senior official of the Lanco group had earlier said the project has three components -- an operating mine, development of another mine and a port.

The proposal is consistent with the Bunbury Port Authority's Inner Harbour structure plan, which is being assessed separately by the EPA as a strategic proposal, EPA Chairman Paul Vogel said in a statement. The structure plan's objectives are to guide future development and decision-making within the Inner Harbour.

The coal will be supplied from the proposed expansion of the company's operations at Collie Basin. The proposal includes the development of a berth pocket and associated onshore coal storage and export infrastructure. To control dust, the coal will be stored in large sheds and transferred to ships in enclosed conveyors.

Vogel said Griffin Coal modified the proposal in several areas, which would allow it to meet the EPA objectives for several key environmental factors, provided the recommended conditions are implemented.

The EPA decided to assess the Griffin Coal proposal at the level of Public Environmental Review with a six-week public review period due to the potential impact on biodiversity, according to the report.

The area considered for assessment is the waters of the Bunbury Port Inner Harbour, including Koombana Bay, and the marine offshore waters.

The EPA has recommended that the company keep the public informed throughout the dredging program by publishing on a weekly basis the actual extent of the dredge plume. This is in addition to monitoring and evaluating water quality.

"Dredging during the construction phase of the proposal has a low risk of impacting marine environmental quality," Vogel said. However, there will be temporary plumes in the bay from dredging from time to time, he added.

"The proponent (Griffin Coal) has also ensured the presence of marine fauna observers during marine construction activities and committed to undertaking visual boat-based dolphin monitoring following construction," Vogel said.

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.60.25
UK Pound	1	Rs.101.92
Euro	1	Rs.80.70

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.