MIRA INFORM REPORT

Report Date :

21.08.2014

IDENTIFICATION DETAILS

Name :	STERLING BIOTECH LIMITED
Registered Office :	43, Atlanta Building, Nariman Point, Mumbai - 400021, Maharashtra
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	23.03.1985
Com. Reg. No.:	11-035738
Capital Investment / Paid-up Capital :	Rs. 267.873 Millions
CIN No.: [Company Identification No.]	L51900MH1985PLC035738
TAN No.: [Tax Deduction & Collection Account No.]	MUMS16116C
PAN No.: [Permanent Account No.]	AABCS1946H
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the Manufacturing of Pharma Grade Gelatine and Di-Calcium Phosphate and other Pharma products.
No. of Employees :	1354 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. Rating reflects moderate financial risk profile due to loss incurred by the company which will deteriorate reserves of the company. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES :

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

ECGC Country Risk Classification List – 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.

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 DECLINED

Management Non-cooperative. (Tel. No.: 91-22-66306732)

LOCATIONS

Registered Office :	43, Atlanta Building, Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-66306732
Fax No.:	91-22-22041954
E-Mail :	sterlingbiotech@stergel.com api@sterbio.com
Branch Office 1 :	C - 25, Laxmi Towers, 'A' - 601, 6th Floor, Bandra Kurla Complex, Bandra (East) Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-26541241 / 42 / 43
Fax No.:	91-22-26540155
Branch Office 2:	Sandesara Estate, Padra Road, Atladra, Vadodara - 390012, Gujarat, India.
Tel No.:	91-265-2680720 / 30
Fax No.:	91-265-2680257 / 732
Email :	sterling_gelatin@stergel.com
Factory 1:	ECP Road, Village Karakhadi, 391450, Taluka Padra, District Baroda, Gujarat, India
Tel No.:	91-2662-273292 / 94 / 273364 /65 / 67
Fax No.:	91-2662-273293
Factory 2:	Jambusar State Highway, Village Masar – 391421, Taluka Padra, District Vadodara, Gujarat, India
Tel No.:	91-2662-237301
Fax No.:	91-2662-237304
Factory 3:	Sandyanalla, Sholur Gram Panchayat, Ottacamund, District The Nilgiries, Tamilnadu, India

DIRECTORS

As on: 31.12.2013

Name :	Mr. Nitin Sandesara
Designation :	Chairman and Managing Director
Name :	Mr. Chetan Sandesara
Designation :	Joint Managing Director
Name :	Mr. Rajbhushan Dixit
Designation :	Director
Name :	Mr. Vilas D Joshi
Designation :	Director
Name :	Mr. Priyadarshan B. Merita
Designation :	Director
Name :	Mr. Narendrabhai B. Patel
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6252000	2.81
Bodies Corporate	84588135	37.98
Sub Total	90840135	40.79
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	90840135	40.79
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	7003	0.00
Foreign Institutional Investors	23754870	10.67
Sub Total	23761873	10.67
(2) Non-Institutions
Bodies Corporate	44835729	20.13
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	36377548	16.33
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	15070874	6.77
Any Others (Specify)	11815066	5.31
Clearing Members	7380846	3.31
Non Resident Indians	4433390	1.99
Foreign Corporate Bodies	830	0.00
Sub Total	108099217	48.54
Total Public shareholding (B)	131861090	59.21
Total (A)+(B)	222701225	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	45294765	0.00
Sub Total	45294765	0.00
Total (A)+(B)+(C)	267995990	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the Manufacturing of Pharma Grade Gelatine and Di-Calcium Phosphate and other Pharma products.

GENERAL INFORMATION

No. of Employees :

1354 (Approximately)

Bankers :

· Andhra Bank

· Allahabad Bank

· Bank of Baroda

· Bank of India

· Bank of Maharashtra

· Catholic Syrian Bank Limited

· Federal Bank

· IDBI Bank

· Indian Overseas Bank

· Oriental Bank of Commerce

· Punjab National Bank

· State Bank of India

· Syndicate Bank

· Uco Bank

· Vijaya Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2013	As on 31.12.2012
LONG TERM BORROWINGS
Term Loans from Banks	420.125	305.000
Redeemable Non-Convertible Debentures	450.000	1050.000
External Commercial Borrowings
ECB 2009 aggregating USD 50,625,000 (December 31, 2012: USD 70,875,000)	3133.536	3882.341
ECB 2010 aggregating USD 88,440,292 (December 31, 2012: USD 112,020,000)	5474.188	6136.153
SHORT TERM BORROWINGS
Working Capital Borrowings from Banks	10306.272	10235.481
Interest accrued and due on working capital borrowings	2508.454	859.666
Short Term Loans from Banks	4110.499	3622.750
Total	26403.074	26091.391
Note: Interest rates on Rupee term loans from banks vary in the range of 11.5% p.a. to 16.35% p.a. (linked with BPLR). The said loans are repayable in quarterly installments with a maximum tenure of 6 years. Part of the said loans are also secured by way of second charge on the current assets of the Company, both present and future, on pari passu basis and/or the personal guarantees of the Promoter Directors of the Company. 2. Interest rate on Redeemable Non-Convertible Debentures is 12%. The said debentures are redeemable in 20 quarterly installments starting from November 05, 2010 and last installment due on August 05, 2015. 3. Interest rates on External Commercial Borrowings vary in the range of 4.50% p.a. to 6.50% p.a. (linked with LIBOR). The said ECBs are repayable in half yearly installments starting from May 20, 2012 with a maximum tenure of 6 years. 4. The company has defaulted in repayment of certain debt obligations towards installments and interest. Certain Banks and Financial Institutions have initiated legal action against the Company and/or its directors for recovery of these debt. However, the Company is in continuous dialogue with the lenders for bilateral restructuring of its debt. Certain banks have already restructured its debt. Interest rates on Working capital Borrowings from Banks vary in the range of 13.25% p.a. to 16.50% p.a. (linked with BPLR). The said loans are repayable on demand and also secured by way of a second charge on the fixed assets of the Company, on pari passu basis. Part of the said loans are additionally secured by way of a personal guarantees of the two Directors of the Company. Interest rate on the Short Term Loans from Banks repayable during 2012 and 2013 vary in the range of 13.25% to 15%.

Banking Relations :	--
Auditors :
Name :	H. S. Hathi and Company Chartered Accountants
Related Party :	· Sterling SEZ and Infrastructure Limited · Sterling Oil Resources Limited · Sterling Port Limited · Atlantic Bluewater Services Private Limited · British Oil and Gas Exploration Limited
Subsidiary :	· Sterling Fincom Private Limited, Mauritius (Subsidiary) · Sterling Commercial FZE, U.A.E. (subsidiary of Sterling Fincom Private Limited, Mauritius)

CAPITAL STRUCTURE

As on: 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Re.1/- each	Rs. 500.000 Millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
271597590	Equity Shares	Re.1/- each	Rs. 271.597 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
267873590	Equity Shares	Re.1/- each	Rs. 267.873 Millions

Reconciliation of number of shares

Equity Shares	31.12.2013
	No. of Shares	Rs. In Millions
Balance as at the beginning of the year	267873590	267.873
Add : Shares issued during the year	--	--
Balance as at the end of the year	267873590	267.873

Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of 1/- per share. Each shareholder of equity share is entitled for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

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

Name of Shareholder	31.12.2013
	Numbers	% holding
Equity shares of 1/- each fully paid
Albula Investment Fund Limited	15963234	5.96%

As per the of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	267.873	267.873	267.873
(b) Reserves & Surplus	14433.365	18439.900	24641.013
(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)	14701.238	18707.773	24908.886
(3) Non-Current Liabilities
(a) long-term borrowings	9477.849	11373.494	15064.735
(b) Deferred tax liabilities (Net)	0.000	1468.401	3148.201
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	9477.849	12841.895	18212.936
(4) Current Liabilities
(a) Short term borrowings	16925.225	14717.897	12260.270
(b) Trade payables	200.517	264.990	438.789
(c) Other current liabilities	32683.444	24304.227	15444.040
(d) Short-term provisions	0.000	0.000	79.765
Total Current Liabilities (4)	49809.186	39287.114	28222.864
TOTAL	73988.273	70836.782	71344.686
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	34334.358	36331.309	29420.987
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	21097.920	15518.122	16455.063
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3765.175	3765.175	3650.032
(c) Deferred tax assets (net)	455.899	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	59653.352	55614.606	49526.082
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	7935.198	8699.374	10087.911
(c) Trade receivables	3357.060	3470.960	7230.117
(d) Cash and cash equivalents	174.871	178.331	219.872
(e) Short-term loans and advances	2867.792	2873.511	4268.517
(f) Other current assets	0.000	0.000	12.187
Total Current Assets	14334.921	15222.176	21818.604
TOTAL	73988.273	70836.782	71344.686

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2013	31.12.2012	31.12.2011
	SALES
	Income	7180.695	8347.741	16619.539
	Other Income	42.605	70.231	93.078
	TOTAL (A)	7223.300	8417.972	16712.617
Less	EXPENSES
	Manufacturing Expenses	4843.450	6144.501	10279.960
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	274.980	(335.081)	(1483.669)
	Employees benefits expense	546.768	536.802	505.656
	Other expenses	568.691	525.512	943.525
	Extraordinary Items	0.000	12.187	962.271
	TOTAL (B)	6233.889	6883.921	11207.743
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	989.411	1534.051	5504.874
Less	FINANCIAL EXPENSES (D)	4377.079	4123.282	2704.308
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(3387.668)	(2589.231)	2800.566
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2543.166	2588.309	2522.246
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(5930.834)	(5177.540)	278.320
Less	TAX (H)	(1924.300)	(1679.801)	87.003
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(4006.534)	(3497.739)	191.317
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	185979.800	2229.678	5140.773
	TOTAL EARNINGS	185979.800	2229.678	5140.773
	IMPORTS
	Raw Materials	12.217	4.353	82.084
	TOTAL IMPORTS	12.217	4.353	82.084
	Earnings / (Loss) Per Share (Rs.)	(14.96)	(13.06)	0.71

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
PAT / Total Income	(%)	(55.47)	(41.55)	1.14
Net Profit Margin (PBT/Sales)	(%)	(82.59)	(62.020	1.67
Return on Total Assets (PBT/Total Assets}	(%)	(12.19)	(10.04)	0.54
Return on Investment (ROI) (PBT/Networth)		(0.40)	(0.28)	0.01
Debt Equity Ratio (Total Debt/Networth)		1.80	1.39	1.10
Current Ratio (Current Asset/Current Liability)		0.29	0.39	0.77

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	267.873	267.873	267.873
Reserves & Surplus	24641.013	18439.900	14433.365
Net worth	24908.886	18707.773	14701.238
long-term borrowings	15064.735	11373.494	9477.849
Short term borrowings	12260.270	14717.897	16925.225
Total borrowings	27325.005	26091.391	26403.074
Debt/Equity ratio	1.097	1.395	1.796

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	16619.539	8347.741	7180.695
		(49.772)	(13.980)

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	16619.539	8347.741	7180.695
Profit	191.317	(3497.739)	(4006.534)
	1.15%	(41.90)%	(55.80)%

LOCAL AGENCY FURTHER INFORMATION

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

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Bench:- Bombay
Presentation Date:- 30/04/2014
Lodging No:-		EXAL/808/2014		Filing Date:-	30/04/2014
Petitioner:-	KNIGHT FRANK (INDIA) PRIVATE LIMITED		Respondent:-	STERLING BIOTECH LIMITED
Petn. Adv.:	HARIANI AND COMPANY (I1912)
District:-	MUMBAI
Bench:-	SINGLE
Status:-	Pre-Admission		Category:-	EXECUTION APPLICATIONS.
Act:-	Code of Civil Procedure 1908

OPERATIONS

During the year, the turnover (including other income) of the Company is decreased to Rs. 7223.300 Million as against Rs. 8417.970 Million in the previous year. The finance cost was increased to 4377.080 Million as against Rs. 4123.280 Million in the previous year. The Loss before tax was Rs. 5930.830 Million as against Rs. 5177.540 Million in the previous year. After reducing the deferred tax, the loss after tax was Rs.4006.530 Million as against Rs. 3497.74 Million in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

OUTLOOK

The company aims to focus its attention more on its Pharmaceutical products, Oncology products and Hydrolised Proteins in addition to the Bone gelatin for its future growth. The Company intends to have focused and continuous innovation in Research and Development which will help secure a sound future. Concentration is also on expansion of the product portfolio along with stricter credit policy and cost control through long term contracts with suppliers and tightening of expenses so as to improve margins.

The Company has all required certifications in terms of quality which gives the company good demand visibility in the International and Domestic Market. With future growth in pharma sector which uses gelatin as raw material for manufacture of capsules, there will be not be demand constraint for the Company.

OPERATING AND FINANCIAL PERFORMANCE

The highlights of Sterling Biotech's financial performance during 2013 were:

• The company achieved a turnover (including other income) of Rs. 7223.300 Millions.

• EBIDTA from operations was Rs. 989.410 Millions.

• The finance cost was Rs. 4377.079 Millions. Leading to Loss before tax of Rs. 5930.835 Millions.

• After reducing the deferred tax, the loss after tax was Rs. 4006.535 Millions.

• Net worth as at 31st December 2013 stood at Rs. 14701.239 Millions

During the FY 2013 the operations of the company have started stabilizing after the various issues of ETP etc. which got over in FY 2012. The global economic turbulences has impacted the volumes and the increase in cost of materials as well as the challenges in sourcing crushed bones of required quality has increased the cost of manufacturing. The finance cost and manufacturing costs have increased whereas the selling price have had no matching upward effect causing drastic erosion in the profitability.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE FIRST QUARTER ENDED 31 MARCH 2014

(Rs. In Millions)

Particulars	31.03.2014
Income from operations
(a) Net sales/income from operations (net of excise duty)	1882.136
(b) Other operating income	6.198
Total income from operations (net)	1888.334
Expenses
a) Cost of materials consumed	928.804
b) Purchases of stock-in-trade	0.000
c) Changes in inventories of finished goods, work-in- process and stock-in-trade	336.180
d) Employee benefits expense	137.997
e) Depreciation and amortisation expense	638.886
g) Other expenses	117.953
Total expenses	2159.820
Profit from operations before other income, finance costs and exceptional items (1-2)	(271.486)
Other income	0.000
Profit before finance costs and exceptional items (3+4)	(271.486)
Finance costs	1258.110
Profit / (Loss) from Ordinary Activities after finance costs but before tax (5-6)	(1529.596)
Tax expense
Current	0.000
Deferred	(496.300)
Tota	(496.300)
Net Profit / (Loss) from Ordinary Activities after tax (7-8)	(1033.296)
Extraordinary item	0.000
Net Profit / (Loss) for the period (9+10) Activities after tax (7-8)	(1033.296)
Prior year adjustment	0.000
Profit available for appropriation	(1033.296)
Paid-up equity share capital (Face value-7l per equity share)	267.874
Reserves (excluding revaluation reserves) as per Balance Sheet of previous accounting year
Earnings per share (of 71 each) (for the period - not annualised)
Basic	(3.86)
Diluted	(2.39)
Particulars of Shareholding
Public Shareholding
- Number of shares	131861090
- Percentage of shareholding	49.23%
Promoters and Promoter group Shareholding a) Pledged/encumbered
-Number of shares	50816835
-Percentage of shares (as a % of the total shareholding of promoter and promoter group)	55.94%
-Percentage of shares (as a % of the total share capital of the Company)	18.97%
b) Non-encumbered
-Number of shares	40023300
-Percentage of shares (as a u u of the total shareholding of promoter and promoter group)	44.06%
Percentage of shares (as a % of the total share capital of	14.94%

Particulars	31.03.2014
Investment Complaints
Pending at the beginning of the quarter	0
Received during the quarter	5
Disposed of during the quarter	5
Remaining unresolved at the end of the quarter	0

Note:

The company's operations fall under single segment hence segment reporting as defined in Accounting Standard 17 is not

Applicable.

The above Financial results have been reviewed by the Audit Committee and taken on record by the Board of Directors in its meeting held on 15 May, 2014.

The Statutory Auditors have carried out a limited review of the financial resluts for the quarter ended on 31 March 2014.

The Company has Overseas Subsidiaries and there are no business operations in the subsidiary companies.

The Figures of the previous Quarter ended on 31 December 2013 are the Balancing figures between the audited figures in respect of the full financial year ended on 31 December 2013 and published year to date figures upto the third quarter ended on 30 September 2013.

Previous period figures have been regrouped/reclassified, wherever necessary.

During the Quarter, the Company has completed the Cashless Exchange Offer, by issue of the Zero coupon Foreign Currency Convertible Bonds due 2019 aggregating to USD 206,453,000 in exchange of existing 250,000,000 Zero Coupon Foreign Currency Convertible Bonds due 2012 of which US$134,500,000 in Principal amount remained outstanding ("Cashless Exchange Offer")

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10379629	17/09/2012	1,026,100,000.00	BANK OF BARODA	TARDEO BRANCH, MUMBAI, MAHARASHTRA - 400034, INDIA	B59342055
2	10363954	25/05/2012	1,500,000,000.00	SREI INFRASTRUCTURE FINANCE LIMITED	VISHWAKARMA, 86C, TOPSIA ROAD (SOUTH), KOLKATA, WEST BENGAL - 700046, INDIA	B42981498
3	10351397	06/04/2012	2,965,100,000.00	ALLAHABAD BANK	RAJMAHAL ROAD BRANCH, RAJ MAHAL ROAD, VADODARA, GUJARAT - 390001, INDIA	B38082160
4	10310375	19/08/2011	3,500,000,000.00	UCO BANK	APSARA BUILDING, PRF. MANEKRAO ROAD, DANDIA BAZAR, VADODARA, GUJARAT - 390001, INDIA	B22631345
5	10322143	04/06/2011	1,850,000,000.00	BANK OF INDIA	NARIMAN POINT LARGE CORPORATE BRANCH, 92-93, FREE PRESS HOUSE, FREE PRESS JOURNAL MARG, NP, MUMBAI, MAHARASHTRA - 400021, INDIA	B20807806
6	10259992	04/01/2011 *	4,185,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	B06431209
7	10260793	04/01/2011 *	6,584,358,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	B06787964
8	10253703	28/10/2010	2,250,000,000.00	STATE BANK OF INDIA	COMMERCIAL BR. (ADVANCES), N.G.N. VAIDYA MARG, BANK STREET, HORNIMAN CIRCLE, POST BOX NO. 10141, MUMBAI, MAHARASHTRA - 400001, INDIA	A98987340
9	10251658	23/09/2010	750,000,000.00	BANK OF BARODA	EVEREST, J.D. ROAD, TARDEO, MUMBAI, MAHARASHTRA - 400034, INDIA	A98759855
10	10240009	30/07/2010	3,510,000,000.00	ANDHRA BANK	AKOTA BRANCH, SHRENIK PARK CHAR RASTA, VADODARA, GUJARAT - 390020, INDIA	A94759669

* Date of charge modification

FIXED ASSETS

· Land and Development

· Building

· Plant and Machinery

· Office Equipment’s and Furniture

· Vehicles

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. 60.72
UK Pound	1	Rs. 101.48
Euro	1	Rs. 81.05

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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.