MIRA INFORM REPORT

Report Date :

25.08.2014

IDENTIFICATION DETAILS

Name :	ELANTAS BECK INDIA LIMITED
Registered Office :	147, Mumbai-Pune Road, Pimpri, Pune – 411018, Maharashtra
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	15.03.1956
Com. Reg. No.:	11-134746
Capital Investment / Paid-up Capital :	Rs. 79.277 Millions
CIN No.: [Company Identification No.]	L24222PN1956PLC134746
TAN No.: [Tax Deduction & Collection Account No.]	PNEB02788C
PAN No.: [Permanent Account No.]	AAACD0538M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of wide range of specialty chemicals for electrical insulation and construction industries.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financial position of the company is sound. Fundamentals of the company are healthy. No borrowings recorded by the company. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

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 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.

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

[CONTACT NO.: 91-20-30610800]

LOCATIONS

Registered / Corporate / Factory 1 :	147, Mumbai-Pune Road, Pimpri, Pune – 411018, Maharashtra, India
Tel. No.:	91-20-30610800
Fax No.:	91-20-30610792
E-Mail :	shirish.dabir@altana.com bapu.gawade@remove-this.altana.com abhaey.kkulthe@remove-this.altana.com satish.deshpande@remove-this.altana.com kedar.gokhale@altanachemie.com rajanikant.salunke@altanachemie.com
Website :	http://www.elantas.com
Factory 2 :	Plot No. 1 (A, B and C), GIDC Industrial Area, Ankleshwar – 393002, Gujarat, India
Marketing and Export Head Office :	Beck House, 147, Mumbai – Pune Road, Pimpri, Pune – 411018, Maharashtra, India
E-Mail :	sanjay.deosthali@remove-this.altana.com
Regional Offices :	New Delhi 403, World Trade Centre, Babar Road, New Delhi – 110001, India Tel. No. : 91-11-23411664/ 23412940 Fax No. : 91-11-23413408 E-mail : ravi.kiran@beckindia.com Kolkata Unit 708, 7^th Floor, Om Tower, 32, J. L. Nehru Road, Kolkata – 700079, West Bengal, India Tel. No.: 91-33-22271841 Fax No. : 91-33-22271843 E-mail : nirjhar.k@beckindia.com Bangalore 1176, 12^thH.A.L. II Stage, Bangalore – 560008, Karnataka, India Tel. No. : 91-80-25281649/ 25283093 Fax No. : 91-80-25280831 E-mail : bhaskar.n@beckindia.com

DIRECTORS

AS ON 31.12.2013

Name :	Mr. Ravindra Kumar
Designation :	Managing Director
Date of Appointment :	01.01.2014
Name :	Dr. Matthias Wolfgruber
Designation :	Chairman
Name :	Dr. Guido Forstbach
Designation :	Director
Name :	Mr. Suresh Talwar
Designation :	Director
Name :	Mr. Ravindra Kulkarni
Designation :	Director
Name :	Mr. Ranjal Laxmana Shenoy
Designation :	Director
Date of Appointment :	28.10.2013
Name :	Mr. Sharadkumar Shetye
Designation :	Alternate Director to Dr. Guido Forstbach
Date of Birth/Age :	65 Years
Qualification :	B. Tech.(Chemical Engg.), D.B.M., M.M.S.
Experience :	43 Years

KEY EXECUTIVES

Name :	Mr. Sanjay Deosthali
Designation :	Business Lines Manager - South Asia
Name :	Mr. Sanjay Kulkarni
Designation :	General Manager - Finance & Materials
Name :	Dr. Vinayak Bhanu
Designation :	General Manager-Research & Development
Name :	Mr. Shirish Dabir
Designation :	Company Secretary & Head-Legal, HRM
Name :	Mr. Milind Talathi
Designation :	Vice President - Manufacturing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	5945761	75.00
Sub Total	5945761	75.00
Total shareholding of Promoter and Promoter Group (A)	5945761	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	288283	3.64
Financial Institutions / Banks	50	0.00
Sub Total	288333	3.64
(2) Non-Institutions
Bodies Corporate	342433	4.32
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1104521	13.93
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	131737	1.66
Any Others (Specify)	114897	1.45
Non Resident Indians	23151	0.29
Foreign Bodies - D R	91746	1.16
Sub Total	1693588	21.36
Total Public shareholding (B)	1981921	25.00
Total (A)+(B)	7927682	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)	7927682	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Elantas Ghbh	59,45,761	75.00	75.00
	Total	59,45,761	75.00	75.00

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Reliance Capital Trustee Company Limited	117523	1.48	1.48
2	Globe Commodities Limited	100000	1.26	1.26
3	HDFC Trustee Company Limited A/C HDFC Growth	91780	1.16	1.16
4	Pinebridge Investments Private limited	91746	1.16	1.16
	Total	401049	5.06	5.06

BUSINESS DETAILS

Line of Business :

Manufacturing of wide range of specialty chemicals for electrical insulation and construction industries.

Products/ Services :

Product Description	Item Code No. (ITC Code)
Insulating Varnishes	32089041
Unsaturated Polyester Resins	39079190
Epoxide Resins	39073010

GENERAL INFORMATION

No. of Employees :	Information declined by the management
Bankers :	· The Bank of Nova Scotia HDFC Bank Limited Kotak Mahindra Bank Limited

Banking Relations :	--
Auditors :
Name :	BSR and Company LLP Chartered Accountants
Address :	703, Godrej Castlemaine, Next to Ruby Hall Clinic, Bund Garden Road, Pune - 411001, Maharashtra, India
Tel. No.:	91-20-30504000
Fax No.:	91-20-30504100
Internal Auditors :
Name :	Mahajan and Aibara Chartered Accountants
Address :	1 Chawla House, 62 Woodhouse Road, Colaba, Mumbai - 400005, Maharashtra, India
Solicitors :
Name :	Talwar Thakore and Associates
Address :	3rd Floor, Kalpataru Heritage, 127, M.G. Road, Fort, Mumbai – 400001, Maharashtra, India
Holding Company :	· SKionGmbH (Holding company of Altana AG) · Altanaag (Holding company of Altana Chemie GmbH) · Altana Chemie GmbH (Holding company of ELANTAS GmbH) · Elantas GmbH (Holding company (88.55%))
Fellow Subsidiary :	· BYK-Chemie GmbH Elantas UK Limited Elantas PDG Incorporation Elantas Italia (Previously known as ELANTAS Deatech Sri) Elantas Tongling Company Limited Elantas Camattini S.P.A. Elantas Zhuhai Company Limited Elantas Isolantes Electricos Do Brasil LTDA Byk Chemie Asia Pacific PTE Limited Eckartgmbh ELANTAS Beck GmbH

CAPITAL STRUCTURE

AS ON 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,927,682	Equity Shares	Rs. 10/- each	Rs. 79.277 Millions

Rights, preferences and restrictions attached to equity shares:

The Company has a single class of equity shares. Each holder of equity shares is entitled to one vote per share. Accordingly, all equity shares rank equally with regards to dividends and share in the Company’s residual assets. The equity shareholders are entitled to receive dividend as declared from time to time.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company after distribution of all preferential amounts in proportion to the number of equity shares held.

Equity shares held by Holding / Ultimate holding company and / or their subsidiaries:

6,214,870 (Previous year 7,020,316) equity shares of Rs.10 each held by ELANTAS GmbH (Holding Company)

Particulars of shareholders holding more than 5% of equity shares:

6,214,870 Previous year 7,020,316) equity shares of Rs. 10 each held by ELANTAS GmbH. (percentage of holding 78.39% (previous year 88.56%))

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	79.277	79.277	79.277
(b) Reserves & Surplus	1003.756	1202.004	1773.906
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1083.033	1281.281	1853.183
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	18.965	14.989	12.881
(c) Other long term liabilities	10.711	14.953	5.701
(d) long-term provisions	34.956	35.741	30.679
Total Non-current Liabilities (3)	64.632	65.683	49.261
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	243.623	254.646	211.667
(c) Other current liabilities	107.879	94.047	80.277
(d) Short-term provisions	516.332	852.864	51.122
Total Current Liabilities (4)	867.834	1201.557	343.066
TOTAL	2015.499	2548.521	2245.510
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	469.033	470.146	297.292
(ii) Intangible Assets	10.272	21.951	35.688
(iii) Capital work-in-progress	0.442	2.789	136.126
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.469	1.469	0.991
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	26.082	30.943	40.620
(e) Other Non-current assets	5.913	6.187	0.126
Total Non-Current Assets	513.211	533.485	510.843
(2) Current assets
(a) Current investments	453.300	999.912	802.576
(b) Inventories	437.750	447.147	383.699
(c) Trade receivables	467.129	384.912	378.099
(d) Cash and cash equivalents	109.963	148.091	122.024
(e) Short-term loans and advances	29.236	29.452	42.957
(f) Other current assets	4.910	5.522	5.312
Total Current Assets	1502.288	2015.036	1734.667
TOTAL	2015.499	2548.521	2245.510

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2013	31.12.2012	31.12.2011
	SALES
	Income	3031.152	2732.188	2689.679
	Other Operating Revenues	12.086	12.418	0.000
	Other Income	109.030	107.118	60.366
	TOTAL (A)	3152.268	2851.724	2750.045
Less	EXPENSES
	Cost of Materials Consumed	2132.479	1923.849	1900.187
	Purchases of Stock-in-Trade	4.680	4.383	6.974
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(33.333)	2.269	3.614
	Employees benefits expense	169.634	164.665	150.846
	Other expenses	377.183	337.867	278.352
	TOTAL (B)	2650.643	2433.033	2339.973
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	501.625	418.691	410.072
Less	FINANCIAL EXPENSES (D)	1.779	1.015	0.682
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	499.846	417.676	409.390
Less/ Add	DEPRECIATION/ AMORTISATION (F)	53.804	47.446	49.980
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	446.042	370.230	359.410
Less	TAX (H)	128.531	94.467	112.029
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	317.511	275.763	247.381
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	661.091	1260.569	1079.251
Less	APPROPRIATIONS
	Proposed Dividend (Final)	436.023	729.347	35.675
	Dividend Distribution Tax	79.736	118.318	5.650
	Transfer to General Reserve	31.751	27.576	24.738
	BALANCE CARRIED TO THE B/S	431.092	661.091	1260.569
	EARNINGS IN FOREIGN CURRENCY
	On account of exports at FOB Value	102.700	74.511	112.418
	Royalty	1.743	1.764	0.000
	Commission	0.000	0.917	0.000
	TOTAL EARNINGS	104.443	77.192	112.418
	IMPORTS
	Raw Materials	565.705	577.321	512.851
	Capital Goods	0.764	4.548	5.198
	Purchase for resale	0.622	2.942	7.226
	TOTAL IMPORTS	567.091	584.811	525.275
	Earnings / (Loss) Per Share (Rs.)	40.05	34.78	31.20

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
PAT / Total Income	(%)	10.07	9.67	9.00
Net Profit Margin (PBT/Sales)	(%)	14.72	13.55	13.36
Return on Total Assets (PBT/Total Assets}	(%)	22.15	14.55	17.05
Return on Investment (ROI) (PBT/Networth)		0.41	0.29	0.19
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.73	1.68	5.06

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	79.277	79.277	79.277
Reserves & Surplus	1773.906	1202.004	1003.756
Net worth	1853.183	1281.281	1083.033
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	2689.679	2732.188	3031.152
		1.580	10.942

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	2689.679	2732.188	3031.152
Profit	247.381	275.763	317.511
	9.20%	10.09%	10.47%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
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

CHANGE IN ADDRESS

The Registered Office has been shifted from Beck House, Damle Path, Off Law College Road, Pune – 411004, Maharashtra, India to the present address w.e.f.22.01.2013.

PERFORMANCE

The sales at Rs.3031.000 Millions for the year ended 31 December 2013 registered 11 % growth over the sales of Rs.2732.000 Millions for the previous year ended 31 December 2012. In terms of sales quantity, the tonnage sold during the year ended 31 December 2013 increased by 5% over the previous year.

Despite the hardening of raw material prices and weakening of the Indian Rupee, the Company’s margins improved due to efficient sales price management and raw material cost optimizations.

Company’s efforts on reducing costs of its operation and other administrative costs yielded positive results and helped in registering a better profit return, both before and after tax. The Profit before Tax stood at Rs.446.000 Millions and Profit after Tax was reported at Rs.370.000 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Indian economy is currently witnessing difficult times in more than a decade largely caused by slow pace of reforms and infrastructure development, declining manufacturing output, and high inflation leading to high borrowing cost. Growth estimates for the coming fiscal are less than encouraging. Indian Electrical insulation market was no exception. All major market segments e.g. electrical equipment and Indian automotive industry have shrunk during the year. A massive Rupee depreciation and exchange rate fluctuations during 2013 posed significant challenges. This had substantial impact on Company’s input costs however; it successfully mitigated this impact considerably by various cost reduction initiatives in procurement and product development areas by leveraging local and ALTANA’s capabilities.

Despite adverse market conditions, Company has not only grown well in terms of revenues but also improved its margins by:

· Continued focus on carefully chosen market segments

Customer and product portfolio management

Cost optimization

Price adjustments across business lines

Industrial recovery is expected to be slow in the near term. There are little hopes that market sentiments will improve before the general elections in 2014. However, management will continue its efforts in improving the competitive edge and strengthening company’s position in the market. The Company has a strong new product and new business development pipeline in place. The management will target these areas to ensure that growth momentum is sustained in relation to the market. Company will focus and appropriately invest in developing capabilities in the area of product and application development, manufacturing at both the plants for enhanced efficiency and optimizing costs across operations. Customer focus is at the center of Company's business strategy, which means Company will continue to focus on supplying high quality products, providing innovative and customized solutions, and excellent after sales service to its customers.

SEGMENT WISE PERFORMANCE

ELECTRICAL INSULATION SYSTEMS

The EIS business, comprising Business Lines -Primary Insulations and Secondary Insulations, continues to dominate the portfolio, accounting for 84% of the sales revenue during the year.

Company was confronted with various economic and market challenges during 2013 such as continued economic slowdown, weakening rupee, stubborn inflation, slowing demand across sectors of economy and declining manufacturing output.

Customers in primary and secondary electrical insulation market had a difficult year due to worsened economic situation.

The situation of India’s 1.3 lakh crore rupee electrical equipment industry, though not different, is somewhat lop sided as indicated below:

· While the overall electrical equipment industry index seems to be in positive mode (April-September 2013), the segments relevant to business cycle of the Company like Rotating Machines, Switchgears, etc. continue to de-accelerate with negative volume growth of around 4% and 7% respectively for first 8 months of current fiscal.

Although, overall imports of electrical equipment have shown a negative growth, imports of power transformers, motors and generators have risen during the review period despite weakened rupee. This situation has also led to large scale underutilization of domestic capacities.

However, there were positive developments too. Installed capacity of power segment increased by 23000 MW during 2013. With this performance, the overall power shortages have been minimized, although ironically sub-optimal performance of manufacturing segment has partly contributed to the improved power availability.

Despite grim market situation, EIS segment delivered excellent performance during year. The EIS segment had 4% volume growth and 11% value growth during 2013. This clearly signifies improved market position of the Company. The demand slow down notwithstanding, the Company took some bold initiatives like introduction of new products, expansion of customer base, price corrections, etc., while the sustained endeavor for internal cost optimization continued unabated.

Therefore, though the user segments could not remain insulated from the hostile market situation, the Company’s position as market leaders continues to remain more than secured.

ELECTRONIC AND ENGINEERING MATERIALS

Electronic and Electrical (EL) Compounds has been identified as the potential growth area for the Company. The growth prospects are very promising in view of the specialty product offerings for Electronics, Auto Electricals, High Voltage castings, Amorphous core bonding in Transformers.

Speciality Epoxy and Polyurethane Products of the Company catering to Auto and allied industries have been well received by the OEM customers and are slowly replacing the conventional imported systems from Japan, Korea, Italy, Sweden etc. In view of this, the Company is focusing on substituting products imported by customers. Some of these opportunities became more attractive due to weakened rupee during 2013. In this product line, the Company is getting active help from European and US affiliates of ELANTAS for speedy development and offering better products. This has created opportunities in new areas e.g. RO filtration membranes, LED potting, Advanced battery adhesives.

The Company is well equipped to develop and supply speciality products meeting global technical specifications using its global technology network within ELANTAS group. The Company offers environmentally safe ‘RoHS and REACH’ compliant products to meet specific customer demand.

To actively support manufacturers and customers exporting their products, the Company also offers UL approved

(Underwriters Laboratory) products, in Epoxy and Polyurethane formulations. The response from the customers to such new products is quite encouraging.

In order to meet the global product validation criteria, the Company has taken concrete measures to strengthen its ‘Research and Development’ and ‘Technical Services’. Upgradation of Technical Services laboratory is already underway, which will provide better and speedy services to the Company’s customers.

The Company made all-out efforts to further strengthen market position with respect to quality, product solution expertise, innovation and service.

CURRENT FUTURE AND OUTLOOK

Considering that growth forecast of the Indian economy is around 5% in fiscal year 2014-15, the Company anticipates slow improvement in business scenario in the near future. With consumer inflation staying very high despite various measures taken by Indian Government, no major sign of improvement in current account and fiscal deficit, political uncertainty, slow pace of development initiatives by government and no improvement in rupee situation, business prospects hold little promise in short term.

The Company will continue to focus on high growth segments within overall difficult market and align its resources to capture the value from such segments. The Company has been successful with this approach in the last year and hopes to continue to out-perform the market. While doing so, managing and optimizing cost across operations during such difficult times will remain a priority.

COMPANY PERFORMANCE

The Company’s performance during the year improved as compared to previous year. Sales at Rs.3031.000 Millions during the year ended 31 December 2013 showed an increase of 11% and also in terms of volume, sales increased by 5%. The Company registered a growth in profitability.

Notwithstanding the adversities faced in terms of hardening of raw material prices and rupee depreciation, the Company did manage to improve its margin due to efficient sales price management and raw material cost optimizations.

The Company continued to focus on reduction of its operation and other administrative costs, which yielded positive results and helped register a better profit return. The Profit before Tax was at Rs.446.000 Millions and Profit after Tax was at Rs.370.000 Millions.

Net Cash Flows from operating activities during the year at Rs.232.000 Millions were lower as compared to Rs.256.000 Millions during the previous year.

CONTINGENT LIABILITIES:

Particulars	31.12.2013 (Rs. In Millions)	31.12.2012 (Rs. In Millions)
Claims against the Company not acknowledged as debts	18.574	18.574
Excise duty matters	22.696	12.715
Income tax matters	2.393	2.393
Sales tax matters	33.423	30.440
Guarantee in favour of Gujarat Industrial Development Corporation	1.224	1.224

Note: No Charges Exist for Company

UNAUDITED FINANCIAL RESULT FOR THE QUARTER ENDED MARCH 31, 2014.

(Rs. In Millions)

Particulars	31.03.2014 (Unaudited)
Income from Operations
Net Sales/Income from Operations	793.144
Other Operating Income	2.825
Total Income from operations (net)	795.969
Expenses
(a) Cost of material consumed	549.282
(b) Purchase of stock in trade	0.950
(c) Changes in inventories of finished goods, work in progress and stock in trade	14.394
(d) Employee benefit expenses	44.236
(e) Depreciation and amortization expenses	13.740
(f) Other Expenses	87.822
Total Expenses	710.424
Profit from Operations before Other Income, Finance costs and Exceptional item	85.545
Other Income	11.719
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	97.264
Finance costs	1.524
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	95.740
Exceptional item	--
Profit/ Loss from Ordinary Activities before tax	95.740
Tax Expenses	35.275
Net Profit/ Loss from Ordinary Activities after tax	60.465
Extraordinary Items	--
Net Profit for the period	60.465
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	79.277
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	--
Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualized)	7.63
Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualized)	7.63
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	1981921
Percentage of Shareholding	25.00%
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	--
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--
- Percentage of Shares (as a % of the Total Share Capital of the Company)	--
Non - encumbered
- Number of Shares	5945761
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00%
- Percentage of Shares (as a % of the total share capital of the company)	75.00%

	Particulars	3 months Ended 31.03.2014
B	Investor complaints
	Pending at the beginning of the quarter	--
	Received during the quarter	--
	Disposed of during the quarter	--
	Remaining unresolved at the end of the quarter	--

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	31.03.2014 (Unaudited)
Segment revenues
Electrical Insulation	646.138
Electronic and engineering materials	151.066
	797.204
Less: Inter segment revenue	--
Net Sales Income from operations	797.204
Segment results : Profit/ Loss
Electrical Insulation	68.624
Electronic and engineering materials	22.035
Total	90.659
Less: Interest	1.524
Add: Other unallocable income net of unallocable expenditure	6.605
Profit before tax	95.740
Capital Employed
Electrical Insulation	821.687
Electronic and engineering materials	202.850
Others	118.961

Note:

The unaudited financial results for the quarter ended March 31, 2014 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on May 06, 2014. The statutory auditors have carried out a limited review and expressed an unqualified opinion.

Figures for the preceding 3 months ended December 31, 2013 are the balancing figures between audited figures ‘in respect of the full previous financial year and the published year to date figures up to the third quarter of the
Previous financial year Also the figures of the first three quarters up to September 30, 2013 were only reviewed
and not subjected to audit.

The Company operates in two business segments, Electrical Insulations and Engineering and Electronic Resins and Materials, as defined by Accounting Standard 17, 'Segment Reporting' notified pursuant to Companies (Accounting Standards) Rules, 2006 as per the Companies Act 1956 ('the Act') read with General Circular 15/2013 dated September 13, 2013.

FIXED ASSETS:

Tangible Assets

• Freehold Land
• Leasehold Land
• Buildings and Roads
• Plant and Machinery
• Furniture and Fixtures
• Motor Vehicles
• Computer Software

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. 60.43
UK Pound	1	Rs. 100.24
Euro	1	Rs. 80.35

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.