MIRA INFORM REPORT

Report Date :

27.12.2014

IDENTIFICATION DETAILS

Name :	ION EXCHANGE (INDIA) LIMITED
Registered Office :	ION House, Dr. E. Moses Road, Mahalaxmi, Mumbai – 400011, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.03.1964
Com. Reg. No.:	11-014258
Capital Investment / Paid-up Capital :	Rs.145.321 Millions
CIN No.: [Company Identification No.]	L74999MH1964PLC014258
TAN No.: [Tax Deduction & Collection Account No.]	MUMI04982F
PAN No.: [Permanent Account No.]	AAACI1726L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Ion-Exchange Resins, Water Treatment Plants and Chemical Additives.
No. of Employees :	Information denied by the Management.

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a flagship company of the ION Exchange Group. It is a well-established company having satisfactory track. The company possess a favourable financial profile marked by decent networth base and adequate gap between trade receivables and payables along with moderate debt protection metrics. Management has reported a sufficient sales volume as well as net profitability during 2014. Trade relations are fair. Business is active. Payment terms are reported as regular. In view of groups support and strong market position, the subject can be considered for business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	12.12.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating: A2+
Rating Explanation	Strong degree of safety.
Date	12.12.2013

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

MANAGEMENT NON-COOPERATIVE (91-22-39890909)

LOCATIONS

Registered Office/ Corporate Office :	ION House, Dr. E. Moses Road, Mahalaxmi, Mumbai – 400 011, Maharashtra, India
Tel. No.:	91-22-24939520/ 523/ 525/ 31/ 32/ 24938737/ 39890909/ 30472042
Fax No.:	91-22-24938737
E-Mail :	milind.puranik@ionexchane.co.in ieil@ionexchane.co.in
Website :	http://www.ionindia.com http://www.ionexchane.co.in
Factory 1 :	Resin Manufacturing Plant - Unit II 5811-12-13, GIDC, Ankleshwar Industries Estate, Ankleshwar – 393 002, Bharuch, Gujarat, India
Factory 2 (International Division) :	Assembly Centre for Local and Export of Water Treatment Plants R-14, TTC, MIDC, Near Thane-Belapur Road, Rabale, Navi Mumbai – 400 701, Maharashtra, India
Tel. No.:	91-22-39890909/ 30472400
Fax No.:	91-22-27697918
E-Mail :	rabcrointl@ionexchange.co.in export.sales@ionexchange.co.in uaesales@ionexchange.co.in
Factory 3 :	Manufacture and Assembly Standard Plants 105, SIPCOT Industrial of Complex, Dharmapuri, Hosur – 635 126, Tamilnadu, India
Factory 4 :	Water Treatment Chemicals, Sugar Treatment Chemicals, Polymer products 19/A, Phase II, Industrial Development Area, Medak, Patancheru – 502 319, Andhra Pradesh, India
Factory 5 :	Consumer Products Plot Nos. L48 and L49, Verna Electronics City, Phase II, Verna, Salcette, Goa – 403 722, India
Regional Offices :	Located at: · Mumbai · Chennai · Delhi · Kolkata
Branch Offices :	Located at: · Ahmedabad · Bangalore · Bhubaneshwar · Chandigarh · Hyderabad · Lucknow · Vadodara · Vizag

DIRECTORS

As on 31.03.2014

Name :	Mr. Rajesh Sharma
Designation :	Chairman and Managing Director
Date of Birth	23.09.1954
Qualification:	B.Sc., LLB
Date of Appointment:	26.03.1996
Name :	Mr. Dinesh Sharma
Designation :	Executive Director
Name :	Mr. Aankur Patni
Designation :	Executive Director
Name :	Dr. V. N. Gupchup
Designation :	Director
Name :	Mr. M. P. Patni
Designation :	Director
Date of Birth	25.09.1945
Qualification:	B.E. (Mechanical)
Date of Appointment	28.09.2001
Name :	Mr. T. M. M. Nambiar
Designation :	Director
Date of Birth	25.05.1937
Qualification:	A.C.A.
Date of Appointment:	29.01.2003
Name :	Mr. P. Sampathkumar
Designation :	Additional Director
Date of Birth	27.12.1938
Qualification:	Chartered Engineer, U.K. Marine Engineer
Date of Appointment:	22.03.2005
Name :	Mr. Abhiram Seth
Designation :	Director
Date of Birth	09.12.1951
Qualification:	B.A. (Hons.) Economics, MMS
Date of Appointment:	25.07.2008
Name :	Mr. Shishir Tamotia
Designation :	Director
Date of Birth	05.09.1949
Qualification:	B.E.(Elec.),MBA
Date of Appointment	24.05.2010
Name :	Mrs. K. J. Udeshi
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Milind Puranik
Designation :	Company Secretary
Name :	Mr. Ajay A. Popat
Designation :	Executive Vice President - Corporate Diversification and Marketing
Name :	Mr. Dinesh Sadasivan
Designation :	Senior Vice President – Standard Systems and Services
Name :	Mr. N. M. Ranadive
Designation :	Senior Vice President - Finance
Name :	Mr. S. V. Mehendale
Designation :	Senior Vice President - Resin and Membrane Division
Name	Mr. Prashant K. Chitnis
Designation	Senior Vice President – Technology
Name :	Mr. S. N. Iyengar
Designation :	Senior Vice President - Medium Industry Segment
Name :	Mr. Anil Khera
Designation :	Vice President - Chemical Division
Name :	Mr. J. P. Pathare
Designation :	Senior Vice President - International Divison

SHAREHOLDING PATTERN

As on 30.09.2014

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	3297917	22.69
Bodies Corporate	488296	3.36
Any Others (Specify)	2672514	18.39
Trusts	2672514	18.39
Sub Total	6458727	44.44
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6458727	44.44
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5234	0.04
Financial Institutions / Banks	377	0.00
Insurance Companies	166230	1.14
Foreign Institutional Investors	37057	0.25
Sub Total	208898	1.44
(2) Non-Institutions
Bodies Corporate	1282484	8.83
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3610730	24.85
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2816280	19.38
Any Others (Specify)	155040	1.07
Trusts	1010	0.01
Non Resident Indians	154030	1.06
Sub Total	7864534	54.12
Total Public shareholding (B)	8073432	55.56
Total (A)+(B)	14532159	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)	14532159	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Seller of Ion-Exchange Resins, Water Treatment Plants and Chemical Additives.
Products :	Ion-Exchange Resins Water Treatment Plants Chemical Additives
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	--
Purchasing :	--

GENERAL INFORMATION

Suppliers :

--

Customers :

--

No. of Employees :

Information denied by the Management.

Bankers :

• Bank of India
• Canara Bank
• State Bank of India
• Axis Bank Limited
• Punjab National Bank
• Export-Import Bank of India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loans from Banks
Indian rupee loan from bank	29.608	0.000
Indian rupee loan from financial institution	6.562	14.525
Indian rupee Vehicle loan from banks and Finance company	5.310	5.296
Other Loans and Advances
Finance lease obligation	6.060	11.927
SHORT TERM BORROWINGS
Working capital loan from banks	586.679	397.972
Buyers credit from bank	0.000	44.178
Total	634.219	473.898

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company LLP Chartered Accountants
Advocate and Solicitors :	Crawford Bayley and Company
Subsidiaries :	· Ion Exchange Enviro Farms Limited · Watercare Investments (India) Limited · Aqua Investments (India) Limited · Ion Exchange Asia Pacific Pte. Limited, Singapore · Ion Exchange Asia Pacific (Thailand) Limited · IEI Environmental Management (M) Sdn. Bhd., Malaysia · Ion Exchange Environment Management (BD) Limited, Bangladesh · Ion Exchange Infrastructure Limited · Ion Exchange LLC, USA · Ion Exchange and Company LLC, Oman · Ion Exchange WTS (Bangladesh) Limited · Ion Exchange Projects and Engineering Limited (w.e.f. 11.04.2011) · Global composites and Structural Limited (w.e.f. 29.03.2012) · Ion Exchange Safic Pty. Limited, south Africa (w.e.f. 20.08.2012) · Total Water Management Services (India) Limited (w.e.f. 01.04.2012) · Ion Exchange Purified Drinking Water Private Limited (w.e.f 25.09.2013)
Associates:	· Aquanomics Systems Limited · IEI Water-Tech (M) Sdn. Bhd., Malaysia * · Astha Technical Services Limited · Ion Exchange PSS Company Limited, Thailand * · Ion Exchange Financial Products Private Limited *
Joint Venture :	· Ion Exchange Waterleau Limited
Entity having significant influence :	· IEI Shareholding Trusts
Enterprises owned or significant influenced by key management personnel of their relatives:	· Arkepp and Associates · Ion Foundation

* Associate Companies of Subsidiaries

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14532159	Equity Shares	Rs.10/- each	Rs.145.321 Millions

(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	31.03.2014
	No. of Shares	(Rs. in Millions)
At the beginning of the period	13304103	133.041
Issued during the period – ESOS	47800	0.478
Shares issued as per scheme of Amalgamation	1180256	11.802
Less: Shares extinguished as per scheme of amalgamation	--	--
Outstanding at the end of the period	14532159	145.321

(b) Terms/rights attached to equity shares

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

During the year ended 31st March 2014, the amount of per share dividend recognized as distribution to equity shareholders is Rs. 2 (2012-2013: Rs. 2)

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

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

Equity Shares	31.03.2014
	No. of Shares	(Rs. in Millions)
Rakesh Jhunjhunwala	875000	6.02%
Rajesh Sharma	781218	5.38%

As per 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 ownership of shares.

(d) Aggregate number of share issued for consideration other than cash during the period of five years immediately preceding the reporting date.

Particulars	31.03.2014 No. of Shares
Shares issued as per scheme of Amalgamation	1180256

The company has issued 946500 shares during the period of five years immediately preceding the reporting date on exercise of options granted under the Employee Stock Option Scheme (ESOS) wherein part consideration was received in form of employee services.

(e) Shares reserved for issued under ESOS

For details of shares allotted under various Employee Stock Option Schemes (ESOS) and shares reserved for issue under the Employees Stock Option Scheme (ESOS) of the company.

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	145.321	133.041	135.619
(b) Share Capital Suspense Account	0.000	11.803	0.000
(c) Reserves & Surplus	1863.641	1694.860	1486.764
(d) 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)	2008.962	1839.704	1622.383
(3) Non-Current Liabilities
(a) long-term borrowings	61.623	47.796	23.332
(b) Deferred tax liabilities (Net)	67.742	66.850	61.166
(c) Other long term liabilities	59.961	39.597	35.323
(d) long-term provisions	53.042	48.108	47.111
Total Non-current Liabilities (3)	242.368	202.351	166.932
(4) Current Liabilities
(a) Short term borrowings	621.904	442.150	338.914
(b) Trade payables	2625.907	2603.663	2748.949
(c) Other current liabilities	371.517	497.749	771.492
(d) Short-term provisions	150.714	161.181	164.029
Total Current Liabilities (4)	3770.042	3704.743	4023.384
TOTAL	6021.372	5746.798	5812.699
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	768.237	831.343	575.694
(ii) Intangible Assets	2.705	0.000	0.000
(iii) Capital work-in-progress	11.351	14.565	132.759
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	521.109	521.009	352.824
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	636.919	583.051	503.422
(e) Trade Receivables	68.003	105.103	100.590
(f) Other Non-current assets	0.851	0.306	0.431
Total Non-Current Assets	2009.175	2055.377	1665.720
(2) Current assets
(a) Current investments	0.492	0.489	0.489
(b) Inventories	417.452	431.654	410.938
(c) Trade receivables	2915.703	2668.505	3326.034
(d) Cash and cash equivalents	142.113	152.549	104.307
(e) Short-term loans and advances	534.452	436.626	303.438
(f) Other current assets	1.985	1.598	1.773
Total Current Assets	4012.197	3691.421	4146.979
TOTAL	6021.372	5746.798	5812.699

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	7119.480	7673.374	6525.339
		Other Income	81.395	58.765	90.321
		TOTAL	7200.875	7732.139	6615.660
Less	EXPENSES
		Cost of Materials Consumed	4689.033	5149.782	4423.939
		Purchases of Stock-in-Trade	283.118	297.989	286.911
		Increase)/decrease in inventories of Finished Goods, Work-in-Progress and Traded Goods	25.067	(29.944)	(39.509)
		Employees benefits expense	727.006	779.873	616.694
		Other expenses	980.673	1010.603	917.893
		TOTAL	6704.897	7208.303	6205.928
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		495.978	523.836	409.732
Less	FINANCIAL EXPENSES		97.947	119.911	88.541
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		398.031	403.925	321.191
Less/ Add	DEPRECIATION/ AMORTISATION		83.991	79.085	64.970
	PROFIT/ (LOSS) BEFORE TAX		314.040	324.840	256.221
Less	TAX		108.834	109.915	80.728
	PROFIT/ (LOSS) AFTER TAX		205.206	214.925	175.493
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		612.757	447.965	317.255
Less	APPROPRIATIONS
		Transfer to General Reserve	15.500	16.200	13.200
		Proposed Final Dividend	29.176	29.010	27.183
		Tax on Dividend	4.939	4.923	4.400
	BALANCE CARRIED TO THE B/S		768.348	612.757	447.965
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	1307.358	1113.650	913.917
		Freight and other recoveries	10.168	12.100	6.902
		Dividend	0.000	0.000	12.230
		Interest	0.600	0.283	0.122
	TOTAL EARNINGS		1318.126	1126.033	933.171
	IMPORTS
		Raw Materials	571.737	702.932	703.968
		Capital Goods	0.000	0.000	10.381
		Traded Goods	1.493	5.296	0.000
	TOTAL IMPORTS		573.230	708.228	714.349
	Earnings / (Loss) Per Share (Rs.)
	- Basic		14.13	14.85	12.98
	- Diluted		14.08	14.56	12.75

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	2.85	2.78	2.65
Net Profit Margin (PBT/Sales)	(%)	4.41	4.23	3.93
Return on Total Assets (PBT/Total Assets}	(%)	5.79	6.36	4.90
Return on Investment (ROI) (PBT/Networth)		0.16	0.18	0.16
Debt Equity Ratio (Total Debt/Networth)		0.34	0.27	0.22
Current Ratio (Current Asset/Current Liability)		1.06	1.00	1.03

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	135.619	133.041	145.321
Reserves & Surplus	1486.764	1694.860	1863.641
Share Capital Suspense Account	0.000	11.803	0.000
Net worth	1622.383	1839.704	2008.962
long-term borrowings	23.332	47.796	61.623
Short term borrowings	338.914	442.150	621.904
Total borrowings	362.246	489.946	683.527
Debt/Equity ratio	0.223	0.266	0.340

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)
Revenue from operations	6525.339	7673.374	7119.480
		17.593	(7.218)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	6525.339	7673.374	7119.480
Profit	175.493	214.925	205.206
	2.69%	2.80%	2.88%

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	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	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS

Case Details

Bench:-Bombay

Presentation Date:-				27/06/2014
Lodging No.:-	CAL/289/2014	Filing Date:-	27/06/2014	Reg. No.:-	CA/409/2014	Reg. Date:-	29/09/2014

Main Matter

Lodging No.:-

CPL/412/2013

Reg No.:-

CP/355/2014

Petitioner:-

M/S. H.R. SOLUTIONS

Respondent:-

M/S. ION EXCHANGE (INDIA) LIMITED

Petn.Adv.:-

BB NANGARE AND ASSOCIATES (I7234)

Resp.Adv.:-

HARESH KEWALRAM MENGHANI (I2866)

District:-

OUTSIDE MAHARASHTRA

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	COMPANY APPLN. U/SEC 433,434,439 OF COMPANIES ACT

Next Date:-

23/01/2015

Stage:-

COMPANY APPLN. FOR CONDONATION OF DELAY

Coram:-

ACCORDING TO SITTING LIST

Act :-

Companies Act & Rules 1956

Under Section:-

433, 434 & 439

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Deposits
Deposit from shareholders	0.176	0.351
Deposit from public	13.907	15.697
SHORT TERM BORROWINGS
Inter-corporate deposits
- from related parties	15.225	0.000
- from others	20.000	0.000
Total	49.308	16.048

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10488447	19/03/2014	380,000,000.00	Bank of India	Bank of India, Ground Floor, 364, D N Road, Fort, Mumbai, Maharashtra - 400001, INDIA	C02740215
2	10435700	19/06/2013	70,000,000.00	Kotak Mahindra Bank Ltd	36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai, Maharashtra - 400021, INDIA	B79132288
3	10384791	11/10/2012	160,000,000.00	Bank of India	Mumbai Large Corporate Branch, Oriental Building,  Gr Floor, 364, D.N. Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B61497384
4	10304936	30/08/2013 *	243,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, Floor 21, World Trade Centre,  Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA	B85523280
5	10262258	23/09/2010	10,000,000.00	karnataka State financial corporation	1/1, Thimmaiah Road, Bangalore, Karnataka - 560052, INDIA	A97964266
6	10175605	19/08/2009	500,000,000.00	Bank of India	Mumbai Large Corporate Branch , 70/80 M G Road,  4th Floor , Fort, Mumbai, Maharashtra - 400001, INDIA	A69555811
7	10138554	06/10/2009 *	40,500,000.00	Karnataka State Financial Corporation	1/1,Thimmaiah Road, Bangalore, Karnataka - 560052, INDIA	A72058209
8	10098786	19/06/2013 *	70,000,000.00	Canara Bank	Industrial Finance Branch, No 83, Venktadari Complex, Richmond Road, Bangalore, Karnataka - 560025, INDIA	B79058392
9	80007206	25/08/2012 *	2,900,000,000.00	Bank of India - Lead Bank	Mumbai Large Corporate Branch, Oriental Building,  Gr Floor, 364, D.N. Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B57681025
10	80010700	25/08/2012 *	2,900,000,000.00	Bank of India - Lead Bank	Mumbai Large Corporate Branch, Oriental Building,  Gr Floor, 364, D.N. Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B57682965
11	80026088	21/08/2012 *	2,900,000,000.00	Bank of India- Lead Bank	Mumbai Large Corporate Branch, Oriental Building,  Gr Floor, 364, D.N. Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B57679946
12	90242484	25/08/2012 *	2,900,000,000.00	Bank of India - Lead Bank	Mumbai Large Corporate Branch, Oriental Building,  Gr Floor, 364, D.N. Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B57682023
13	90352478	20/08/1996	6,300,000.00	HDFC BANK LTD.	RAMON HOUSE, 169; BACKBAY RECLAMATION, MUMBAI, Maharashtra, INDIA	-
14	90377676	17/09/1991	2,000,000.00	CENTRAL BANK OF INDIA	DR. A.B. ROAD, WORLI BRANCH, MUMBAI, Maharashtra, INDIA	-
15	90371659	11/09/1989 *	3,500,000.00	ICICI BANK LTD.	163 BACKBAY RECLAMTION, MUMBAI, Maharashtra, INDIA	-
16	90377357	20/07/1987	110,000.00	STATE BANK OF INDIA	YELLAREEDYGUDA BRANCH, HYDERABAD, Andhra Pradesh, INDIA	-
17	90377282	07/07/1987 *	450,000.00	STATE BANK OF INDIA	YELLAREDDYGUDA BRANCH, HYDERABAD, Andhra Pradesh, INDIA	-

* Date of charge modification

OPERATIONS

During the financial year ended 31^st March, 2014, the net profit after tax of the company was Rs. 205.200 millions, as compared to previous year’s net profit after tax of Rs. 214.900 millions. The turnover was at Rs. 7360.000 millions as compared to Rs. 7950.000 millions of the previous year.

FUTURE OUTLOOK

They expect that the industry in which the company operates will see significant investments by the government and private sector. These investments maybe directed towards the twin objectives of environmental protection and sustained growth. The government is likely to take a lot of initiatives through various economic reforms and policies to build infrastructure and boost growth. Industry as a whole is likely to achieve an uptick in growth with mining clearances, improved electricity generation and removal of other procedural bottlenecks. It is anticipated that technologies oriented towards efficient usage of their water resources would gain favour from government and industry alike. Therefore technologies for treating waste water, recycling and zero liquid discharge are likely to be an important part of the agenda to ensure sustainable growth. Overall the growth for the company’s industrial sector should be around 15%.

The company offers advanced products and services covering all the key technologies for water and waste water treatment plants, water treatment chemicals, resins, as well as high quality integrated services. The company expects to benefit from heightened level of new projects and plant constructions with a focus on advanced treatment technologies which has always been a key revenue driver for the water treatment sector. Increased growth should be seen in the advanced treatment technologies.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

Slower growth in several key emerging economies, political instability in some parts, as well as a more protracted recession in the euro area ensured that global growth remained subdued at around 2.5% during 2013. Global growth is projected to be higher in 2014 at around 3.7 percent, rising to 3.9 percent in 2015.

INDIAN ECONOMY

Indian economy continued to be vulnerable to recessionary trends in Europe and US. A spell of global financial turbulence caused capital outflows and pressure on the exchange rate, but some strong policy measures helped to provide a degree of stability to the currency. The tough measures to reduce current account deficit and rebuild foreign exchange reserves also showed positive results.

While structural and procedural delays and the high cost of borrowing hampered investment and financing, new headwinds appeared in the form of monetary tightening and the heightened challenge of repayment in foreign currency. All this created a negative impact on the economy. Persistent inflation, fiscal imbalances, bottlenecks to investment and other weaknesses & inefficiencies would require further structural reforms in order to be addressed effectively.

In spite of the overall adverse scenario the trends seemed to have turned for the better since the last quarter of fiscal year 2014. Inflation seems to be easing, currency is showing resilience and the business confidence also shows signs of improvement. Better growth prospects in the US and the Euro area are likely to bolster external demand.

The momentum of the economy looks likely to be restored with the hope that the new Government will focus on sustained economic reforms and work towards regaining global confidence in the Indian economy.

INDIAN INDUSTRY

GDP estimates for the year 2013-14 indicate that Industry grew by a meagre 0.4 per cent. The manufacturing and mining sector declined by 1.4 percent. The consumer durables segment index contracted by 12.2 per cent. Gross Capital Formation in industrial sector comprising of mining, manufacturing, electricity and construction has declined from 31.8 in 2011-12 to 28.3 in 2013-14. The overall decline in growth rates of fixed investments hints at further deceleration investment in key segments of industry during the year.

In spite of the overall depressed environment, there was relatively better performance by some of the core sector industries like steel, fertilizers, cement etc. Further, since December 2013 they are also witnessing an increase in the number of new projects announced. The new government is also likely to initiate actions that would bolster capital expenditure, as companies are looking for macroeconomic stability and forward movement on some structural issues before commencing operations. Consequently, they are experiencing an increase in demand which is likely to result in better business opportunities in the second half of the coming year.

Water treatment industry as a whole faced challenges in the domestic market as both the large and the small players suffered due to reduced flow of new projects and severe cash crunch affecting the customers. Even some of the larger engineering focused players were under severe cash stress and were struggling to continue with the smooth flow of operations.

Companies focused on chemicals, resins and specialty chemicals have fared better than their engineering counterparts. While margins continue to be under some stress and growth is limited, they have not struggled as they are not as reliant on new projects. They have also been less affected by the ongoing liquidity crunch.

The pace of entry of new players in the industry slowed down during the year and some degree of consolidation was also witnessed amongst the existing players. However, towards the end of the fiscal year there was renewed interest with respect to water related initiatives which led to expectations building up in this sector.

FIXED ASSETS

œ Land Leasehold Land

œ Land Freehold Land

œ Buildings on Leasehold Land

œ Buildings on Freehold Land

œ Plant and Machinery

œ Vehicles

œ Furniture, Fixture and Office Equipments

œ Office Equipment

UNAUDITED RESULTS FOR THE QUARTER AND ENDED ON 30^TH SEPTEMBER, 2014

(Rs. In Millions)

		Particulars	Quarter ended		Half Year Ended
			30.09.2014	30.06.2014	30.09.2014
1	Income from Operations
	a) Net Sales/Income from Operations		1740.700	1236.000	2976.700
	b) Other Operating Income		4.300	3.000	7.300
	Total Income from Operations (Net)		1745.000	1239.000	2984.000
2	Expenses
	a)	Cost of Materials consumed	1154.600	716.600	1871.200
	b)	Purchase of stock in-trade	55.500	65.300	120.800
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	(14.500)	(25.900)	(40.400)
	d)	Employee benefit expenses	196.000	185.100	381.100
	e)	Depreciation and amortization expense	28.900	29.600	58.500
	f)	Other expenses	268.100	219.600	487.700
	Total Expenses		1688.600	1190.300	2878.900
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	56.400	48.700	105.100
4	Other Income		25.500	21.800	47.300
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	81.900	70.500	152.400
6	Finance Costs		27.600	27.700	55.300
7	Profit /(Loss) before tax		54.300	42.800	97.100
8	Tax Expense		17.700	13.900	31.600
9	Net Profit /(Loss) after tax		36.600	28.900	65.500
10	Paid up equity share capital (Eq. shares of Rs.10/- each)		145.300	145.300	145.300
	Reserve excluding revaluation reserves
		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic	2.52	1.98	4.51
		Diluted	2.49	1.97	4.45
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	8073432	8073432	8073432
		- Percentage of Shareholding	55.56%	55.56%	55.56%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	--	--	--
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	--	--	--
		- Percentage of shares (as a % of the total share capital of the Company)	--	--	--
		b) Non- encumbered
		- Number of shares	6458727	6458727	6458727
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%
		- Percentage of shares (as a % of the total share capital of the Company)	44.44%	44.44%	44.44%

	Particulars		Quarter ended 30.09.2014
B		Investor Complaints
		Pending at the beginning of the quarter	Nil
		Received during the quarter	Nil
		Disposed during the quarter	Nil
		Remaining unresolved at the end of the quarter	Nil

NOTES:

1. The Company with effect from April 01, 2014 has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. Due to above, depreciation charge for the quarter and half year ended September 30, 2014 is higher by Rs. 76 Lacs and Rs. 169 Lacs respectively. Further based on transitional provision provided in note 7(b) of Schedule II of the Companies Act, 2013 depreciation of Rs. 266 Lacs and deferred tax of Rs. 90 Lacs have been adjusted to retained earnings.

2. The above results were reviewed by the Audit Committee at a meeting held on October 29, 2014 and were approved at the meeting of the Board of Directors held on October 29, 2014.

3. Previous period / year figures have been regrouped / reclassified wherever necessary.

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

	Particulars	Quarter ended		Half Year Ended
		30.09.2014	30.06.2014	30.09.2014
1.	Segment Revenue
	a) Engineering	907.900	536.300	1444.200
	b) Chemicals	703.600	583.600	1287.200
	c) Consumer Products	216.200	196.100	412.300
	d) Unallocated	--	--	--
	TOTAL	1827.700	1316.000	3143.700
	Less: Inter-segment transfers	82.700	77.000	159.700
	Net Sales / Income from operation	1745.000	1239.000	2984.000
2.	Segment Results: [Profit/ (Loss) before tax and interest from each segment]
	a) Engineering	22.900	2.600	25.500
	b) Chemicals	80.300	85.700	166.000
	c) Consumer Products	(4.100)	(7.700)	(11.800)
	TOTAL	99.100	80.600	179.700
	Less: Financial Cost	27.600	27.700	55.300
	Other unallocable expenditure, net of unallocable income	31.400	25.000	56.400
	Add: Interest Income	14.200	14.900	29.100
	Total Profit/ Loss –before tax	54.300	42.800	97.100
3.	Capital Employed:
	a) Engineering	832.100	602.300	832.100
	b) Chemicals	809.900	824.500	809.900
	c) Consumer Products	118.100	139.100	118.100
	Total Capital Employed in Segments	1760.100	1565.900	1760.100
	Add: Unallocable corporate assets less corporate liabilities	296.600	454.200	296.600
	Total Capital Employed in Company	2056.700	2020.100	2056.700

STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	30.09.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	145.300
(b) Reserves & Surplus	1911.400
Sub-total Shareholders’	2056.700
(2) Non-Current Liabilities
(a) long-term borrowings	39.200
(b) Deferred tax liabilities (Net)	53.700
(c) Other long term liabilities	68.000
(d) long-term provisions	62.600
Sub-total of Non-Current liabilities	223.500
(3) Current liabilities
(a) Short term borrowings	695.000
(b) Trade payables	2386.300
(c) Other current liabilities	422.000
(d) Short-term provisions	145.600
Sub-total of Current liabilities	3648.900
TOTAL	5929.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	724.000
(b) Non-Current investments	521.100
(c) Deferred tax assets (net)	0.000
(d) Long term loans and advances	547.500
(e) Other non-current assets	77.100
Sub-total of Non-Current Assets	1869.700
(2) Current assets
(a) Current investments	0.500
(b) Inventories	473.600
(c) Trade receivables	2948.100
(d) Cash and cash equivalents	163.800
(e) Short-term loans and advances	472.000
(f) Other current assets	1.400
Sub-total of Current Assets	4059.400
TOTAL	5929.100

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 records 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.63.64
UK Pound	1	Rs.98.98
Euro	1	Rs.78.74

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--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		51

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.