MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	THE INDIAN HUME PIPE COMPANY LIMITED
Registered Office :	Construction House, 2nd Floor, 5, Walchand Hirachand Road, Ballard Estate, Fort, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.07.1926
Com. Reg. No.:	11-001255
Capital Investment / Paid-up Capital :	Rs. 48.447 Millions
CIN No.: [Company Identification No.]	L51500MH1926PLC001255
TAN No.: [Tax Deduction & Collection Account No.]	MUMT00472D
PAN No.: [Permanent Account No.]	AAACT4063D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in providing Engineering, Procurement, Construction and commissioning services in water supply, irrigation and sewerages-related projects.
No. of Employees :	1353 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 10000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having good track record. Fundamentals of the company is decent. Financial position of the company is sound. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for business dealing 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

N E W S

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 their 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 tat 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 facility (Fund Based) = A+
Rating Explanation	Adequate degree of safety and low credit risk
Date	31.07.2014

Rating Agency Name	CARE
Rating	Short Term Bank facility (Non Fund Based) = A1+
Rating Explanation	Very strong of safety and lowest credit risk.
Date	31.07.2014

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 DENIED BY

Name :	Mr. Sittarasu
Designation :	Accountant
Contact No.:	91-22-22618091
Date :	06.08.2014

LOCATIONS

Registered Office / Head Office :	Construction House, 2nd Floor, 5, Walchand Hirachand Road, Ballard Estate, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22618091 / 92 / 40748181
Fax No.:	91-22-22656863
E-Mail :	info@indianhumepipe.com smmandke@indianhumepipe.com
Website :	www.indianhumepipe.com
Research and Development Division :	B11, Arjun Centre, Plot No.231, B.S.D. Road, Govandi (East), Mumbai – 400088, Maharashtra, India
Project/Marketing Office :	Located At · Gaziabad · Jaipur · Kekri · Bhopal · Mumabi · Ahmednagar · Vedgaon · Miraj · Hyderabad · Yelhanka · Chennai
Factory :	Door No. 9-12-22, Gowtami Nagar, Kovvur West, Godavari District, Andhra Pradesh, India Located At · Badarpur · Sikar · Lucknow · Kekri · Allahabad · Karari · Vatva · Petlad · Rajkot · Dule · Kanhan · Vadgaon · Karad · Miraj · Patancheru · Hyderabad · Chouruppal · Kovvur · Chillamathur · Yelhanka · Thanjavur · Srirangam

DIRECTORS

As on: 31.03.2014

Name :	Mr. Rajas R. Doshi
Designation :	Chairman and Managing Director
Name :	Mr. Ajit Gulabchand
Designation :	Director
Name :	Ms. Jyoti R. Doshi
Designation :	Director
Name :	Mr. Rajendra M. Gandhi
Designation :	Director
Name :	Mr. Rameshwar D. Sarda
Designation :	Director
Name :	Mr. N. Balakrishnan
Designation :	Director
Name :	Ms. Anima B. Kapadia
Designation :	Director
Name :	Mr. Vijay Kumar Jatia
Designation :	Director
Name :	Mr. P. D. Kelkar
Designation :	Director
Name :	Mr. Mayur R. Doshi
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. S. M. Mandke
Designation :	Company Secretary
Name :	Mr. M. S. Rajadhyaksha
Designation :	Chief Financial Officer
Executives	· Mr. P. R. Bhat : Sr. General Manager · Mr. Ajay Asthana : General Manager · Mr. G. Pundareekam : General Manager · Mr. Shashank J. Shah : General Manager · Mr. S. P. Makhija : General Manager · Mr. M. S. Rajadhyaksha : Controller of Accounts & Finance · Mr. B. S. Narkhade : Chief Internal Auditor · Mr. A. B. Joshi : Chief Personnel Manager
Name :	Mr. Sittarasu
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	534145	2.21
Bodies Corporate	16403240	67.72
Sub Total	16937385	69.92
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	16937385	69.92
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	415	0.00
Financial Institutions / Banks	40490	0.17
Foreign Institutional Investors	677000	2.79
Sub Total	717905	2.96
(2) Non-Institutions
Bodies Corporate	1247225	5.15
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4865960	20.09
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	411148	1.70
Any Others (Specify)	43962	0.18
Non Resident Indians	43962	0.18
Sub Total	6568295	27.12
Total Public shareholding (B)	7286200	30.08
Total (A)+(B)	24223585	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)	24223585	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in providing Engineering, Procurement, Construction and commissioning services in water supply, irrigation and sewerages-related projects.

GENERAL INFORMATION

Customers :

· L&T

· NCC

· Tata Power

· HCC

· SEW

· SPML

· Pratibha

No. of Employees :

1353 (Approximately)

Bankers :

· State Bank of India

· Bank of Baroda

· State Bank of Hyderabad

· HDFC Bank Limited

· Corporation Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
HDFC Bank Limited	300.000	0.000
Less : Current Maturities of Long Term Loan	(18.750)	0.000
SHORT TERM BORROWINGS
State Bank of India	205.399	0.000
State Bank of Hyderabad	52.086	72.256
Bank of Baroda	211.836	219.428
Corporation Bank	85.145	110.998
HDFC Bank Limited	0.000	161.055
State Bank of India	1000.000	1000.000
State Bank of Hyderabad	300.000	0.000
HDFC Bank limited	100.000	0.000
Total	2235.716	1563.737

Banking Relations :	--
Auditors :
Name :	K. S. Aiyar and Company Chartered Accountants
Address :	F-7, Laxmi Mills, Shakti Mills Lane, (Off. Dr. E. Moses Road), Mahalaxmi, Mumbai – 400 011, Maharashtra, India
Solicitors :	· Daphtary Ferreira and Divan · Udwadia, Udeshi and Argus
Ultimate Holding Company:	· Ratanchand Investment Private Limited
Promoter Holding Company (Holding 65.92% in Equity) :	· IHP Finvest Limited
Companies in which control exists directly/ indirectly:	· Mobile Systems India Private Limited · Raj Jyoti Trading and Investment Private Limited
Other Related Parties	· Walchand Hirachand Foundation · Ratanchand Hirachand Foundation

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.2/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24223585	Equity Shares	Rs.2/- each	Rs.48.447 Millions

Of the above:

(i) 1,93,47,285 equity shares fully paid-up have been issued as bonus shares by capitalisation of general reserves

(ii) 18,75,000 equity shares fully paid-up have been issued by part conversion of 13.5% debentures as per terms on 01-10-1993

(iii) 1,59,67,080 equity shares are held by holding company- IHP Finvest Limited

(iv) 4,36,160 equity shares are held by ultimate holding Company- Ratanchand Investment Private Limited

a) Reconciliation of number of shares:

There was no movement in the number and value of equity shares during the year

b) Terms / rights attached to shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs.2/-. Each holder of equity shares 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.

c) Details of shares held by shareholders holding more than 5% of aggregate shares in the Company.

Name of the Shareholder	No of Shares	% held
IHP Finvest Limited	1,59,67,080	65.92

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	48.447	48.447	48.447
(b) Reserves & Surplus	2494.714	2322.165	2156.056
(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)	2543.161	2370.612	2204.503
(3) Non-Current Liabilities
(a) long-term borrowings	281.250	0.000	0.000
(b) Deferred tax liabilities (Net)	20.850	11.450	0.050
(c) Other long term liabilities	267.104	230.858	247.735
(d) long-term provisions	18.841	16.715	13.033
Total Non-current Liabilities (3)	588.045	259.023	260.818
(4) Current Liabilities
(a) Short term borrowings	2175.463	1763.737	1485.104
(b) Trade payables	1517.452	1483.784	1194.227
(c) Other current liabilities	1893.174	1332.295	1585.422
(d) Short-term provisions	105.696	94.433	90.395
Total Current Liabilities (4)	5691.785	4674.249	4355.148
TOTAL	8822.991	7303.884	6820.469
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	833.686	794.842	689.104
(ii) Intangible Assets	5.226	3.483	2.020
(iii) Capital work-in-progress	9.448	7.680	47.473
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	11.810	17.813	15.199
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	115.524	81.770	69.506
(e) Other Non-current assets	225.605	235.570	208.573
Total Non-Current Assets	1201.299	1141.158	1031.875
(2) Current assets
(a) Current investments	4.500	0.000	0.000
(b) Inventories	3537.294	2975.124	2920.397
(c) Trade receivables	2283.124	1934.992	1386.409
(d) Cash and cash equivalents	142.319	212.244	266.449
(e) Short-term loans and advances	1650.899	1037.616	1209.460
(f) Other current assets	3.556	2.750	5.879
Total Current Assets	7621.692	6162.726	5788.594
TOTAL	8822.991	7303.884	6820.469

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	8189.972	6957.906	5171.692
	Other Income	44.422	52.020	85.555
	TOTAL (A)	8234.394	7009.926	5257.247
Less	EXPENSES
	Cost of Materials Consumed	1533.080	911.138	784.815
	Purchases of Stock-in-Trade	(42.243)	22.992	(19.550)
	Construction expenses	4805.377	4376.860	3089.386
	Employees benefits expense	427.037	390.445	356.310
	Manufacturing and other expenses	149.595	76.741	76.852
	Excise duty and taxes	287.243	303.794	301.389
	Other expenses	279.123	266.201	226.337
	Extraordinary Items	0.000	0.000	(88.458)
	TOTAL (B)	7439.212	6348.171	4727.081
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	795.182	661.755	530.166
Less	FINANCIAL EXPENSES (D)	336.784	253.668	236.801
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	458.398	408.087	293.365
Less/ Add	DEPRECIATION/ AMORTISATION (F)	78.280	73.993	69.435
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	380.118	334.094	223.930
Less	TAX (H)	139.552	105.636	64.694
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	240.566	228.458	159.236
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	1191.456	1125.347	1052.417
Less	APPROPRIATIONS
	Transfer to General Reserve	100.000	100.000	30.000
	Dividend	58.137	53.292	48.447
	Tax on Dividend	9.880	9.057	7.859
	BALANCE CARRIED TO THE B/S	1264.005	1191.456	1125.347
	IMPORTS
	Raw Materials	7.602	16.190	6.914
	TOTAL IMPORTS	7.602	16.190	6.914
	Earnings / (Loss) Per Share (Rs.)	9.93	9.43	6.57

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	2.92	3.26	3.03
Net Profit Margin (PBT/Sales)	(%)	4.64	4.80	4.33
Return on Total Assets (PBT/Total Assets}	(%)	4.32	4.59	3.31
Return on Investment (ROI) (PBT/Networth)		0.15	0.14	0.10
Debt Equity Ratio (Total Debt/Networth)		0.97	0.74	0.67
Current Ratio (Current Asset/Current Liability)		1.34	1.32	1.33

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	48.447	48.447	48.447
Reserves & Surplus	2156.056	2322.165	2494.714
Net worth	2204.503	2370.612	2543.161
long-term borrowings	0.000	0.000	281.250
Short term borrowings	1485.104	1763.737	2175.463
Total borrowings	1485.104	1763.737	2456.713
Debt/Equity ratio	0.674	0.744	0.966

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5171.692	6957.906	8189.972
		34.538	17.707

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	5171.692	6957.906	8189.972
Profit	159.236	228.458	240.566
	3.08%	3.28%	2.94%

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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWINGS
Bank of Nova Scotia	0.000	200.000
HDFC Bank Limited	200.000	0.000
Invoice Discounting Facility from HDFC Bank	20.997	0.000
Total	220.997	200.000

LITIGATION DETAILS
Bench:- Bombay
Lodging No. :	ITXAL/1821/2013	Failing Date:-	23/10/2013	Reg. No.:-	ITXA/2431/2013	Reg. Date:-	20/12/2013
Petitioner:-	THE COMMISSIONER OF INCOME TAX		Respondent:-	THE INDIAN HUME PIPE COMPANY LIMITED
Petn.Adv:-	PADMA DIVAKAR (0)		Resp. Adv.:	SUDHAKAR G LAKHANI (0)
District:-	MUMBAI
Bench:-	DIVISION		Category:-	TAX APPEALS
Status:-	Pre- Admitted		Stage:-
Last Date:-	28/07/2014
Last Coram:-	ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST
Act. :	Income Tax Act,1961			Under Section: 260A

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10476806	30/01/2014 *	300,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER "E", CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B97139794
2	10457295	24/10/2013 *	5,750,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, "E", CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B90206392
3	10436978	01/07/2013	200,000,000.00	STATE BANK OF HYDERABAD	265, SAHID BHAGAT SINGH ROAD, SANTNIWAS, OPP GPO, MUMBAI, MAHARASHTRA - 400001, INDIA	B79681482
4	10144122	05/07/2012 *	500,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTIC J. N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	B42813931
5	10137071	25/11/2008	802,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTIC J. N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	A54345343
6	10094316	11/03/2008 *	2,050,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTIC J. N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	A35295294

* Date of charge modification

PERFORMANCE REVIEW

The Company’s operations of its various projects under execution continued to be profitable, with continued efforts to reduce costs and improve yield as also bettering the productivity levels.

During the year, the revenue from operations has grown by 17.71% to Rs. 8189.972 Millions as compared to Rs. 6957.906 Millions of the previous year. The profit after tax for the year at Rs. 240.566 Millions was higher by 5.30% as compared to Rs. 228.458 Millions of the previous year.

FINANCE

During the year, liquidity position of the Company was maintained satisfactorily and optimum utilization of financial resources was achieved. Increase in the business volume coupled with slow realization of funds in some projects and stringent contractual retention terms in few projects particularly in Tamil Nadu increased level of borrowings. Monetary policy of the Reserve Bank of India continued to be anti-inflationary resulting into high cost of borrowings. Though, the Company endeavoured to resort to the cheaper sources of finances, due to the reasons mentioned earlier, the overall borrowing costs have increased. However, due to well monitored working capital management and better negotiations of pricing for finances, the Company could keep effective cost of borrowings under control.

The Company has been prompt in meeting obligations towards its Bankers and other trade creditors.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

They all know that water is a prime natural resource and a basic human need for survival and existence. Indeed water is fundamental to their life. In view of the vital importance of water for human, animal and plant life, for maintaining ecological balance and for economic and developmental activities of all kinds and considering its increasing scarcity, the planning and management of this resource and its optimal economical and equitable use has become a matter of national importance.

The Company has been in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development for drinking water supply projects, irrigation projects, Hydro Electric Projects, Sanitation and Sewerage Systems. For over a decade as a part of nation building, the Company has also been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.

OUTLOOK

During the last decade, Urban area limits are spreading wider and wider to peripheral areas, but at the same time, the basic amenities like Water Supply, Drainage, etc are not meeting the requirement of more and more urbanization. Apart from the above, most of the rural areas in India fall short of access to drinking water.

Government of India, State Governments and local bodies are making best efforts to supply safe drinking water. Hence number of water supply schemes are under anvil. Further to make cities and rural areas under more hygienic conditions, lot of sewerage disposals and drainage schemes are also coming up.

Considering the above factors, outlook for the Company in water supply, sewerage and drainage segments is encouraging and good.

CONTINGENT LIABILITIES

(Rs. In Millions)

Contingent Liabilities	31.03.2014
Guarantees given by the Banks	2604.057
Performance Corporate guarantees given by the Company to various contractees.	--
Claims against the company not acknowledged as debts	13.627
Sales Tax/Vat demand excluding those recoverable from customers for the years 1980-81 to 2013-14 under appeal.	58.825
Demands raised by Excise department excluding interest, if any, leviable thereon.	149.776
Service Tax demand excluding those recoverable from customers upto the Year 2013-14 under appeal.	1146.831

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE, 2014

(Rs. In Millions)

Particulars		Quarter ended
		30.06.2014
		Unaudited
1	Income from Operations
	(a) Net sates/income from operations (Net of excise duty)	1954.136
	(b) Other Operating Income	15.228
	Total income from operations (net)	1969.364
2	Expenses
	(a) Cost of materials consumed	353.647
	(b) Changes in inventories of finished goods. work-in-progress and stock in trade	14.282
	(c) Construction expense	1138.591
	(d) Other manufacturing expense	33.820
	(e) Works and office establishment expenses	65.672
	(f) Employee benefits expense	1111.128
	(g) Depreciation and Anmortisation Expenses	14.484
	(h) Other Expenses	66.292
	Total expenses	1797.916
3	Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	171.448
4	Other Income	15.081
5	Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	186.529
6	Finance Costs	100.192
7	Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	86.337
8	Exceptional items	0.000
9	Profit/ (Loss) from ordinary activities before tax (7+8)	86.337
10	Tax expenses	30.100
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	56.237
12	Extraordinary item (net of tax expense)	0.000
13	Net Profit / (Loss) for the period (11-12)	56.237
14	Paid up equity share capital (Face Value of Rs10/- each)	48.447
15	Reserve excluding Revaluation Reserve
16	Earnings per share of Rs.2/- each (not annualised):
	(a) Basic and Diluted EPS (In Rs.) before extraordinary Income	2.32
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of shares	7286200
	- Percentage of shareholding	30.08%
2	Promoters and Promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares	Nil
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	Nil
	- Percentage of shares (as a % of the total Share Capital of the Company)	Nil
	b) Non Encumbered
	- Number of shares	16937385
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100.00%
	- Percentage of shares (as a % of the total Share Capital of the Company)	69.92%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed off during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH JUNE, 2014.

(Rs. In Millions)

Particulars		Quarter ended
		30.06.2014
		Unaudited
1	Segment Revenue
	a. Construction contracts of Water supply schemes, pipe supply & laying projects	1933.816
	b Others	20.320
	Total	1954.136
	Less: Inter-Segment revenue	0.000
	Net Sales I Income from Operations	1954.136
2	Segment Results Profit I (Loss) (before tax, finance cost and exceptional items) from Segment
	a. Construction contracts of Water supply schemes, pipe supply & laying projects	219.167
	b Others	3.585
	c Extraordinary Items	0.000
	Total	222.752
	Less:
	i) Finance costs	100.192
	Less/Add Excess of Unallocable Expenditure over Unallocable (Income)	36.223
	Total Profit(Loss) before Tax	86.337
3	Segment Capital employed
	a. Construction contracts of Water supply schemes, pipe supply & laying projects	5390.662
	b Others	57.301
	Unallocated	(2851.098)
	Total Segment Capital Employed	2596.865

NOTES

1 The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 25th July, 2014.

2 The Statutory Auditors of the Company have carried out a limited review of the financial results for the quarter ended 30th June, 2014.

3 The figures for the quarter ended 31st March, 2014 are the balancing figures between the Audited figures in respect of the full financial year and the year to date figures upto the third quarter ended 31st December 2013 which were subjected to Limited Reviewe by the Statutory Auditors.

4 The balance value of the work as on date is Rs.27300.000 Millions as against Rs. 15420.000 Millions in the corresponding period of the previous year.

5 Previous period / year figures have been regrouped/rearranged wherever necessary, to conform to the current period classification.

FIXED ASSETS

· Buildings

· Plant, Machinery and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.41
UK Pound	1	Rs. 103.42
Euro	1	Rs. 82.17

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	6
--LEVERAGE	1~10	6
--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	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		54

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.