MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	CORDS CABLE INDUSTRIES LIMITED	Principal Name 1	Mr. Naveen Sawhney
Status	Satisfactory	Principal Name 2	Mr. Devender Kumar Prashar
		Registration #	55-046092
Street Address	B-1/A-26, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044, India
Established Date	21.10.1991	SIC Code	--
Telephone#	91-11-40551200	Business Style 1	Manufacture
Fax #	91-11-26951196 / 26951731	Business Style 2	Sale
Homepage	http://www.cordscable.com	Product Name 1	Power Cables
# of employees	Not Available	Product Name 2	Instrumentation Cables
Paid up capital	Rs.130,278,000/-	Product Name 3	--
Shareholders	--	Banking	Canara Bank
Public Limited Corp.	YES	Business Period	23 Years
IPO	YES	International Ins.	--
Public Enterprise	YES	Rating	Ba (46)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,273,164,000	Current Liabilities	1,047,362,000
Inventories	518,276,000	Long-term Liabilities	711,641,000
Fixed Assets	1,087,124,000	Other Liabilities	78,792,000
Deferred Assets	0,000	Total Liabilities	1,837,795,000
Invest& other Assets	6,527,000	Retained Earnings	917,018,000
		Net Worth	1,047,296,000
Total Assets	2,885,091,000	Total Liab. & Equity	2,885,091,000
Total Assets (Previous Year)	2,961,552,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	3,854,354,000	Net Profit	60,808,000
Sales(Previous yr)	3,768,074,000	Net Profit(Prev.yr)	53,630,000

Report Date :

13.02.2014

IDENTIFICATION DETAILS

Name :	CORDS CABLE INDUSTRIES LIMITED
Registered Office :	B-1/A-26, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.10.1991
Com. Reg. No.:	55-046092
Capital Investment / Paid-up Capital :	Rs.130.278 Millions
CIN No.: [Company Identification No.]	L74999DL1991PLC046092
TAN No.: [Tax Deduction & Collection Account No.]	DELC06369G
PAN No.: [Permanent Account No.]	AAACC0519K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Subject principal activity is to manufacture and sale of power cables and instrumentation cables for domestic and industrial use.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 4200000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Company performances has improved. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. 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.

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities : BBB
Rating Explanation	Moderate credit quality and average credit risk.
Date	July 26, 2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities : A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	July 26, 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 31-03-2012.

LOCATIONS

Registered Office/ Head Office :	B-1/A-26, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044, India
Tel. No.:	91-11-40551200
Fax No.:	91-11-26951196 / 26951731
E-Mail :	ccil@cordscable.com ipo@cordscable.com csco@cordscable.com [For Investor]
Website :	http://www.cordscable.com
Factory 1 :	Existing Plat : A-525, Industrial Area Chopanki, Bhiwadi, District Alwar – 301019, Rajasthan, India
Factory 2 :	Proposed Plant : SP-239, 240 and 241, Industrial Area Kahrani, Bhiwadi Extension, District Alwar, Rajasthan, India
Regional Offices :	Located At : · Mumbai · Hyderabad · Kolkata
Overseas Office :	· Oman · UAE · Bahrain

DIRECTORS

As On 24.09.2013

Name :	Mr. Naveen Sawhney
Designation :	Managing Director
Date of Appointment :	01.07.2011
DIN No.:	00893704

Name :	Mr. Devender Kumar Prashar
Designation :	Joint Managing Director
Date of Appointment :	01.07.2011
DIN No.:	00540057

Name :	Mr. Om Prakash Bhandari
Designation :	Non-Executive Director
Date of Appointment :	30.09.2006
DIN No.:	00046524

Name :	Mr. Narasinghapuram Krishnaswamy Balasubramanian
Designation :	Non-Executive Director
Date of Appointment :	30.07.2007
DIN No.:	00049608

Name :	Mr. Ajit Kumar Sahay
Designation :	Non-Executive Director
Date of Birth/Age :	01.07.1942
Date of Appointment :	30.09.2010
DIN No.:	00353414

KEY EXECUTIVES

Name :	Ms. Geetanjali S. Kumar
Designation :	Company Secretary and Compliance Officer
Name :	Mr. V. K. Beri
Designation :	Chief Executive Officer (Designate)
Name :	Mr. Varun Sawhney
Designation :	Vice President (Marketing, HR and IT)
Name :	Mr. H. K. Pandita
Designation :	Vice President (Marketing)
Name :	Mr. Amitabha De
Designation :	Assistant Vice President (Strategic Business)
Name :	Mr. Sandeep Kumar
Designation :	General Manager (Accounts and Finance)
Name :	Mr. Dinesh Shukla
Designation :	President (Operations)
Name :	Mr. Rahul Prashar
Designation :	Vice President (Project and Sourcing)
Name :	Mr. Gaurav Sawhney
Designation :	Vice President (Finance and Banking)
Name :	Mr. Anil Gupta
Designation :	General Manager (Technical )
Name :	Mr. Satinder Bedi
Designation :	Head (Business Development)
Name :	Mr. S. K. Bagga
Designation :	General Manager (Technical)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 31.12.2013

Category of Shareholder	Total No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6646438	58.16
Sub Total	6646438	58.16
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6646438	58.16
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	12695	0.11
Sub Total	12695	0.11
(2) Non-Institutions
Bodies Corporate	525254	4.60
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2579475	22.57
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1486340	13.01
Any Others (Specify)	177578	1.55
Non Resident Indians	109553	0.96
Clearing Members	68025	0.60
Sub Total	4768647	41.73
Total Public shareholding (B)	4781342	41.84
Total (A)+(B)	11427780	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)	11427780	0.00

As on 31.3.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Promoters	56.36
Financial Institutional / Banks	0.11
Bodies Corporate	5.21
Individual Holding less than 1 Lakh	23.28
Individual Holding in excess 1 Lakh	13.54
NRIs	0.97
Clearing Members	0.53
Total	100.00

BUSINESS DETAILS

Line of Business :

The Subject principal activity is to manufacture and sale of power cables and instrumentation cables for domestic and industrial use.

Products :

Product Description	ITC Code
Electrical Wire and Cables	8544
Continuous Cast Copper Wire Rod	7408.11.90

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Cables	Cable KM	65000**	22544

* The installed capacity as shown above has been certified by the management and not verified by the Auditors, being a technical matter.

** Includes 35000KM Cable capacity installed at newly established Plant at Kahrani which has commenced its initial production from 03.01.2011.

Note :

As the company is producing more than 400 sizes of cable and the product mix changes depending on the order, hence plant is designed to adopt the changeability and it is difficult to determine the exact capacity for each type of cable

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank

· ICICI Bank Limited

· DBS Bank Limited

· Citi Bank NA

· State Bank of Patiala

· Rajasthan State Industrial Development and Industrial Corporation Limited (RIICO Limited)

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013
Long Term Borrowing
External Commercial Borrowings	43.511
In Rupee Term loans
from Banks	22.442
from Others	277.874
Vehicle Loans
from Banks	1.514
from Others	1.294
Less : Current Maturity Of Long Term Borrowing	116.561
Short Term Borrowing
Working Capital loans
From Banks
In Rupee loans	433.656
Foreign Currency loans	47.911
Total	711.641

Secured Loan	As on 31.03.2012
External Commercial Borrowings	40.925
In Rupee Term loans
from Banks	16.200
from Others	273.001
Vehicle Loans
from Banks	1.008
from Others	0.524
Working Capital loans
From Banks
In Rupee loans	394.864
Foreign Currency loans	84.148
Total	810.670

1. External Commercial Borrowing referred above of Rs.43.511 Miilions are secured by way of first charge on the entire Movable fixed assets and equitable mortgage on Factory Land and Building and Plant and Machinery situated at Kaharani.

2. Term Loans from Banks and others referred above are secured by way of first charge on entire movable fixed assets and equitable mortgage Factory Land and Building and Plant and Machinery and other fixed assets.

3. Vehicle loans are secured by way of hypothecation of vehicles.

4. Maturity Profile of long term borrowings are as below :

	1-2 years	2-3 years	3-4 years	Beyond 4 years
Term loan from Banks	9.989	2.817	--	--
Term loan from others	62.801	61.538	91.002	---
Total	72.790	64.355	91.002	---

5. Working Capital loans along with non-fund based facilities from banks are secured by way of hypothecation of present and future stock of raw materials, work-in-process, finished goods, book debts as first charge which ranks Pari-passu amongst Bankers and by way of First and Second charge on the immovable and movable assets of the company by respective banks and pledge of FDR Rs.32.800 Miilions

Banking Relations :	---
Auditors :
Name :	Sharma Goel and Company Chartered Accountants
Address:	New Delhi, India

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions
360000	Non-Convertible Cumulative Preference Share	Rs.100/- each	Rs.36.000 Millions
	Total		Rs.156.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11427780	Equity Shares	Rs.10/- each	Rs.114.278 Millions
160000	Non-Convertible Cumulative Preference Share	Rs.100/- each	Rs.16.000 Millions
	Total		Rs.130.278 Millions

Terms/rights attached to Equity Shares

The company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. 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 all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. In the event of distributing dividends by the company and winding up, the preference shareholders will be preferred over the equity shareholders. They do not have any voting rights except for in the conditions mentioned in the Companies Act, 1956.

Terms/rights attached to Preference Shares

During the year March, 2012, the Company has issued and alloted 160000 Non-Convertible, Cumulative Redeemable Preference Shares of Rs.100/- each fully paid to Promoters. These Shares carry Dividend rate@10% (Ten Percent) per annum and voting rights of these shares are limited to matters which directly affect the rights of Preference Shareholders. The said Preference Shares shall have tenure of 5 (Five) years, however the company, reserve the right to recall the shares after a period of 2 (Two) years or at any suitable tenure giving knotless than 6 months previous notice in writting to shareholders to redeem these shares. These shares are not listed on any stock exchange.

Authorised Share Capital

During the year March 31,2012, the authorised share capital has been increased from Rs. 120.000 Miilions divided into 12.000 Miilions Equity Shares of Rs.10 each to Rs.140.000 Miilions divided into 12.000 Miilions Equity Shares of Rs.10 each and 2,00,000 Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each at the Annual General Meeting of the Company held on September 26, 2011. During the year March 31,2013 the authorised share capital has been increased from Rs.140.000 Rs.10 into 12.000 Rs.10 Equity Shares each and 2,00,000 Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each to Rs.156.000 Millions divided into 12.000 Millions Equity Shares of Rs.10 (Rupees Ten) each and 360000 Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred)each in the Annual General Meeting of the Company held on September 26, 2012.

The Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year:

Equity Share

	As at 31.03.2013
Particulars	No. of Shares	Amount
Equity Shares at the beginning of the year	11427780	114.278
Add : Equity Share Issued During the year	-	-
Equity Share at the End of the year	11427780	114.278

Preference Share

	As at 31.03.2013
Particulars	No. of Shares	Amount
Preference Shares at the beginning of the year	-	-
Add : Preference Share Issued during the Year	160000	16.000
Preference Share at the end of the year	160000	16.000

The Details of shareholders holding more than 5% shares :

Equity Shares	As at 31.03.2013
Name of Shareholder	No. of Shares	% held
Naveen Sawhney	2698030	23.61
Devender Kumar Prashar	2759317	24.15
Preference Shares
Naveen Sawhney	80000	50
Devender Kumar Prashar	80000	50

40,26,980 Equity Shares out of issued shares, subscribed and Paid up share capital were allotted as Bonus Shares in the last five years by the capitalistion of Security Premium and Reserve and Surplus.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	130.278
(b) Reserves & Surplus	917.018
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	1047.296
(3) Non-Current Liabilities
(a) long-term borrowings	230.074
(b) Deferred tax liabilities (Net)	59.940
(c) Other long term liabilities	22.376
(d) long-term provisions	9.482
Total Non-current Liabilities (3)	321.872
(4) Current Liabilities
(a) Short term borrowings	481.567
(b) Trade payables	863.998
(c) Other current liabilities	160.988
(d) Short-term provisions	9.370
Total Current Liabilities (4)	1515.923
TOTAL	2885.091
I. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1087.124
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	6.447
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	20.613
(e) Other Non-current assets	0.000
Total Non-Current Assets	1114.184
(2) Current assets
(a) Current investments	0.080
(b) Inventories	518.276
(c) Trade receivables	828.212
(d) Cash and cash equivalents	160.511
(e) Short-term loans and advances	215.315
(f) Other current assets	48.513
Total Current Assets	1770.907
TOTAL	2885.091

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		130.278	114.278
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		858.082	805.152
4] (Accumulated Losses)		0.000	0.000
NETWORTH		988.360	919.430
LOAN FUNDS
1] Secured Loans		810.670	829.295
2] Unsecured Loans		0.000	0.000
3] Other Long Term Liabilities		0.000	0.000
TOTAL BORROWING		810.670	829.295
DEFERRED TAX LIABILITIES		55.083	48.216
TOTAL		1854.113	1796.941
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1142.943	1144.288
Capital work-in-progress		6.499	6.499
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	473.627	461.531
	Sundry Debtors	897.257	782.065
	Cash & Bank Balances	121.984	92.138
	Other Current Assets	38.485	38.794
	Loans & Advances	280.757	273.347
Total Current Assets		1812.110	1647.875
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	882.465	822.346
	Other Current Liabilities	208.695	167.851
	Provisions	16.279	11.524
Total Current Liabilities		1107.439	1001.721
Net Current Assets		704.671	646.154
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1854.113	1796.941

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3854.354	3768.074	2896.107
		Other Income	17.064	15.095	12.766
		TOTAL (A)	3871.418	3783.169	2908.873
Less	EXPENSES
		Cost of Material Consumed	3114.724	3084.581	2322.898
		Changes in Inventories of finished goods, work-in-progress & stock in trade	(42.614)	(74.826)	(26.939)
		Employee benefits expenses	162.872	167.575	121.723
		Other Expenses	236.000	234.530	227.933
		TOTAL (B)	3470.982	3411.860	2645.615
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		400.436	371.309	263.258
Less	FINANCIAL EXPENSES (D)		226.425	229.259	140.971
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		174.011	142.050	122.287
Less/ Add	DEPRECIATION/ AMORTISATION (F)		84.004	67.750	43.419
	PROFIT BEFORE TAX (E-F) (G)		90.007	74.300	78.868
Less	TAX (H)		29.199	20.670	25.156
	PROFIT AFTER TAX (G-H) (I)		60.808	53.630	53.712
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		380.059	327.129	273.417
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Proposed Dividend (Preference Dividend)	1.600	0.603	0.000
		Corporate Dividend Tax	0.272	0.098	0.000
	BALANCE CARRIED TO THE B/S		438.995	380.059	327.129
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	290.783	154.243	293.816
	TOTAL EARNINGS		290.783	154.243	293.816
	IMPORTS
		Raw Materials	168.113	126.594	81.054
	TOTAL IMPORTS		168.113	126.594	81.054
	Earnings Per Share (Rs.)		5.16	4.63	4.70

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.57	1.42	1.85
Net Profit Margin (PBT/Sales)	(%)	2.34	1.97	2.72
Return on Total Assets (PBT/Total Assets}	(%)	3.13	2.51	2.82
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.09
Debt Equity Ratio (Total Debt/Networth)		0.68	0.82	0.90
Current Ratio (Current Asset/Current Liability)		1.17	1.64	1.65

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	No
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 :

IN THE HIGH COURT OF DELHI AT NEW DELHI

CS (OS) 2833/2011 AND CC No. 69/2012

ERA BUILDSYS LIMITED…. Plaintiff

Through: Ms. Bijoylaxmi, Advocate

Versus

CORDS CABLE INDUSTRIES LIMITED…. Defendant

Through: Ms. Mehak Gupta, Advocate

CORAM:

SH. GIRISH KATHPALIA (DHJS), JOINT REGISTERAR

ORDER:

10.01.2014

Learned counsel for the plaintiff seeks one more opportunity to lead evidence on the ground that due to some personal difficulty she could not file the chief affidavits earlier.

In this regarded I have perused the previous record and another opportunity is granted to the plaintiff to lead evidence on 21.05.2014.

Chief affidavits be filed within one week.

SH. GIRIS KATHPALIA (DHJS)

JOINT REGISTERAR

JANUARY 10, 2014

OPERATIONAL HIGHLIGHTS

During the year, Company achieved a Turnover of Rs.3854.354 Millions as compared to Rs. 3768.074 Millions in the previous year. The Operational Profit, before making provision for interest and depreciation, amounted to Rs 383.371 Millions as against Rs.356.215 Millions in the previous year. The Profit before tax during the year was Rs.90.007 Millions

The Company has build up strong ongoing relationship with customers and has worked rigorously to deliver value-for-money to its customers. This performance has been achieved by focusing on continuous improvements in operational efficiency, customer service, higher sales, effective working capital management and cost effective initiatives.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW

GLOBAL: Although global prospects have improved again, the road to recovery in the advanced economies is expected to remain bumpy. World output growth is forecast to reach 3¼ percent in 2013 and 4 percent in 2014. Global gross domestic product, which slowed in mid-2012 is recovering, and a modest acceleration in quarterly GDP is expected during the course of 2013. That progress will be masked in the annual data, however, with whole-year growth for 2013 projected at 2.2 percent, a touch slower than in 2012. The strengthening of quarterly growth will show up in whole-year global GDP growth of 3.0 percent for 2014 and 3.3 percent in 2015.

In the major advanced economies, activity is expected to gradually accelerate, following a weak start to 2013, with the United States in the lead. In emerging market and developing economies, activity has already picked up steam. Advanced economy policymakers have successfully defused two of the biggest threats to the global recovery - a breakup of the euro area and a sharp fiscal contraction in the United States caused by a plunge off the “fiscal cliff.” However, some other old dangers remain and new risks have come to the fore. In the short term, risks mainly relate to developments in the euro area, including uncertainty about the fallout from events in Cyprus and politics in Italy as well as vulnerabilities in the periphery. In the medium term, the key risks relate to adjustment fatigue, insufficient institutional reforms, and prolonged stagnation in the euro areas wells high fiscal deficits and debt in the United States and Japan. The United States and Japan still need to devise and implement strong medium-term fiscal consolidation plans. The euro area needs to strengthen the Economic and Monetary Union. In emerging markets and developing economies, some tightening of policies appears appropriate in the medium term. This tightening should begin with monetary policy and be supported with prudential measures as needed to rein in budding excesses in financial sectors. Growth in emerging market and developing economies is projected at 5.3% in 2013 (vis-a-vis 5.1% in 2012).

The extreme risks and swings perceptions that have driven global capital and output markets have eased significantly, even as new risks and challenges have gained in prominence. On the whole, an environment of progressively lower global tail risks and continued structural reforms in various economies will favorably impact global growth outlook in 2013.

INDIA: India's recent slowdown is partly rooted in external as well as domestic causes. The strong post financial crisis stimulus led to stronger growth in 2009-10 and 2010-11. However, the boost to consumption, coupled with supply side constraints, led to higher inflation. Monetary policy was tightened, even as external head winds to growth increased. The consequent slowdown, especially in 2012-13, has been across the board, with no sector of the economy unaffected, even though, in late 2012, the Indian government announced reforms and deficit measures to reverse India's slowdown. With output expansion of 4.5 per cent in Q3 of 2012-13, the lowest in 15 quarters, cumulative GDP growth for the period April-December 2012 declined to 5.0 per cent from 6.6 per cent a year ago. This was mainly due to the protracted weakness in industrial activity aggravated by domestic supply bottlenecks, and slowdown in the services sector reflecting weak external demand. The Central Statistics Office (CSO)'s advance estimate of GDP growth for 2012-13 of 5.0 per cent implies that the economy would have expanded by 4.7 per cent .The growth of industrial production slid to 0.6 per cent in February 2013 from 2.4 per cent a month ago, mainly due to contraction in mining and electricity generation and slowing growth in manufacturing. Consequently, on a cumulative basis, growth in industrial production decelerated to 0.9 per cent during 2012-13 (April-February) from3.5 per cent in the corresponding period of the previous year. CSO's advance estimate lowered the growth in agriculture and allied activities to 1.8% in 2012-13, compared to 3.6% 2011-12.Headline inflation, as measured by the wholesale price index (WPI), moderated to an average of 7.3 per cent in2012-13 from 8.9 per cent in the previous year. The easing was particularly significant in Q4 of 2012-13, with the year-end inflation recording 6.0 per cent.

Since July last year, the Indian rupee has fallen by about 28% against the US dollar - one of the biggest declines among Asian currencies. Also, the current account deficit (CAD) came in at an all-time high of 6.7 per cent of GDP in Q3 of 2012-13. There are indications that it may have narrowed in Q4 largely on account of the trade deficit declining, with exports returning to positive growth after contracting in the first three quarters and non-oil non-gold imports and gold imports declining.

An analysis of corporate performance during Q3 of 2012-13, based on a common sample of 2,473 non-government non-financial companies, indicates that growth of sales as well as profits decelerated significantly. Early results of corporate performance in Q4 indicate continuing moderation in sales. With global growth unlikely to improve significantly in 2013, the outlook for industrial activity may remain subdued and growth in services may remain sluggish. However, conditional upon a normal monsoon, agricultural growth could return to trend levels. It will be fair to state, however, that the slowdown is not just confined to India and that there has been a generals low down in the global economy which has been passing through a rather prolonged phase of uncertainty. Overall, during 2013-14, economic activity is expected to show a modest improvement over last year, with a pick-up likely in the second half of the year. Accordingly, the baseline GDP growth for 2013-14 is projected at 5.7per cent.

INDUSTRY SCENARIO

Cables being a crucial component across industries, manufacturers produce whole host of cables such as power cables, fire safe cables, single cores, multi cores and data cables etc. In India, while the wire and cable industry is moving over the past 20 years from unorganized to organized sector, around 35 per cent of the industry is still in the unorganized sector. There are multiple players in the market, including Indian as well as international, and the Indian market consists of both branded and unbranded cables. Cables and wires are also imported to meet the ever-growing requirement. The wire and cable industry comprises 40 per cent of the electrical industry. Within the next 5 years this is expected to be doubled. The prospects of the cable industry are interlinked with the health of other industries viz: power, telecom, railways, real estate, steel, infrastructure etc., government's procurement policies, strategic diversifications and switching over to integrated manufacturing. Whilst sluggish growth in power sector and escalating imports of electrical equipment may impact the commercial viability of a part of domestic electrical equipment industry, the business environment for Cable industry is showing signs of industrial and infrastructure growth. The future outlook in terms of investment in the infrastructure sector also seems good. This indicates that demand for the cable business ought to improve further. We are optimistic that with sustained, efficient production, the industry will recover in the upcoming quarters

OPPORTUNITIES IN VARIOUS SECTORS

The broad vision and aspirations which the Twelfth Plan seeks to fulfil are reflected in the subtitle: ‘Faster, Sustainable, and More Inclusive Growth'. The total investment in infrastructure sectors in the Twelfth Plan is estimated to be 5570000.000 Millions, which is roughly one trillion dollars at prevailing exchange rates. The share of private investment in the total investment in infrastructure rose from 22 per cent in the Tenth Plan to 36.61 percent in the Eleventh Plan. It will have to increase to about 48 per cent during the Twelfth Plan if the infrastructure investment target is to be met. The Eleventh Plan succeeded in raising investment in infrastructure from 5.04 percent of GDP in the Tenth Plan to 7.2 per cent of GDP in the Eleventh Plan. The Twelfth Plan aims to raise it further to 9 per cent of GDP by 2016–17.

POWER

Power is a critical infrastructure for economic growth. Power is considered to be a core industry as it facilitates development across various sectors of the Indian economy, such as manufacturing, agriculture, commercial enterprises and railways. The power sector consists of generation, transmission and distribution utilities and is a crucial component of India's infrastructure. India's rapid growth over the past decade has increased power demand, which is still largely unmet. In order to meet the increase of electricity, massive addition to the installed generating capacity in the country is required. The capacity addition during the Twelfth Plan period is estimated at 88,537 MW comprising 26,182 MW in the central sector, 15,530 MW in the state sector, and 46,825 MW in the private sector respectively. The capacity addition target for the year 2012-13 was set at 17,956 MW. As against it, a capacity of 9,854 MW was added till 31 December 2012.Besides the initiatives like Aggregate Technical and Commercial losses and Restructured APDRP and the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) under Rural Electrification initiative, the Ministry of Power launched an initiative for development of coal-based super critical Ultra Mega Power Projects (UMPP) of about4000 MW capacity each. Four UMPPs, viz. Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh, and Tilaiya in Jharkhand have already been transferred to the identified developers and are at different stages of implementation. Three units of Mundra UMPP each of 800 MW were commissioned in March ,July, and October 2012. The fourth and fifth units are expected to achieve commercial operation by September2013. Other awarded UMPPs are expected to come up in the Twelfth Plan (except the last unit of the Tilaiya UMPP, which is likely to come up in the Thirteenth Plan).

The positive trend in the power sector is one of the most important catalysts for the wire and cable industry. Cables play a crucial part in all the three aspects of the power sector - generation, transmission and distribution. Therefore, the trend of wire and cable industry is to some extent dependent upon the power sector.

STEEL SECTOR

Indian steel industry plays a significant role in the country's economic growth. India has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernization and up-gradation of old plants, improving energy efficiency, and backward integration into global raw material sources. India's rank in the world order of steel production remained unchanged at fourth slot with an output of 76.7 M.T, despite logging the higher growth of 4.2%, among major producing nation in2012. World crude steel production reached 1548 MT for the year 2012, up by 1.2% compared to 2011 as per World Steel Association (WSA).

India is looking to source advance technologies developed by Korean manufacturers among others for bringing about process innovation in the steel industry and increasing availability of new products in the India market. Further, if the proposed expansion plans are implemented as per schedule, India may become the second largest crude steel producer in the world by 2015-16.

The increased production and the expansion plans of the steel sector will in turn boost demand forcables as it is required for setting up new facilities.

REAL ESTATE SECTOR

The real estate sector in India has come a long way by becoming one of the fastest growing markets in the world.

It is not only successfully attracting domestic real estate developers, but foreign investors as well. The growth of the industry is attributed mainly to a large population base. The sector comprises of four sub-sectors- housing, retail, hospitality, and commercial. While housing contributes to five-six percent of the country's gross domestic product (GDP), the remaining three sub-sectors are also growing at a rapid pace, meeting the increasing Infrastructural needs. The Reserve Bank of India (RBI) has granted permission to foreign citizens of Indian origin to purchase property in India for residential or commercial purpose. RBI has permitted estate developers and housing finance companies to raise up to US$1 Billion through External Commercial Borrowing (ECB) route during the 2012-13fiscal. The government has allowed 51% FDI in multi-brand retail subject to conditions. FDI flows into the construction sector for the period April-February 2012-13 stood at US$ 1,260 million, according to the department of industrial policy and promotion (DIPP). (Source: www.ibef.org/industry/realestate-india.aspx)

Growth in the real estate sector is essential to the growth of wires and cable industry.

AIRPORT MODERNIZATION

The aviation sector is one of the prime movers for economic growth and a strategic element of employment generation, besides providing air transport for passengers and goods. The rapid expansion of air transport network and opening up of the infrastructure to private sector participation can potentially fuel the growth of air traffic in India and the government envisages an investment of $12.1 billion in the airport sector during the 12thplan period. To enhance airport infrastructure in India, modernization of existing airport infrastructure in metro and non-metro cities and construction of Greenfield airports were contemplated. The government has envisaged modernization plan with a view to develop and modernize 37 non-metro airports which have been identifiedbased on regional connectivity, development of regional hubs, places of major tourist attraction, and potential for development as business hubs. 100% FDI is allowed through the automatic route for Greenfield Airport in the country. The Twelfth Five Year Plan (2012-17) envisages an investment of Rs.650000.000 Millions at Indian airports, of which a contribution of about Rs.500000.000 Millions is expected from the private sector. The Airports Authority of India(AAI) has undertaken, through public-private partnership ventures, the restructuring and modernization of Delhi and Mumbai airports at a cost of about Rs.250000.000 Millions with state-of-the-art facilities. In Bangalore and Hyderabad, the government has initiated the construction of Greenfield airport through Build Own Operate and Transfer (BOOT) basis with private sector participation. Expansion of Bangalore International Airport Ltd.(BIAL)has been undertaken at an estimated cost of Rs.14790.000 Millions.

Increased activity in Airport modernization shall add to the demand for specialized cables.

RAILWAYS (including Metro-rails)

The Ministry of Railway Vision 2020 addresses one of the biggest development challenges of contemporary India. By pursuing bold and unprecedented ambitious targets in the much-needed expansion and modernization of the railway network in India, Vision 2020 aims at considerably enhancing the Indian Railways' contribution to the national goal of achieving double-digit GDP growth rate on a sustainable basis.

Some of the major goals set for 2020 in the document include:

(a) Establishing quality of service benchmarked to the best of the railway systems in the world;

(b) Target to achieve Zero accidents;

(c) Target to achieve Zero failures in equipments;

(d) Utilizing at least 10% of its energy requirement from renewable sources;

(e) Instituting a foolproof eco-friendly waste management system;

(f) Completing 4 high speed corridors of (2000 kms) and plan development of 8 others.

METRO-RAIL: Recently, the 103.5 km Phase III of Delhi Metro at a total cost of Rs.352420.000 Millions was approved and targeted for completion by 2016. The metro extension to Faridabad has also been sanctioned. In addition, the government has also approved the extension of Delhi Metro from Dwarka to Najafgarh (5 km), Yamuna Viharto Shiv Vihar (2.7 km), and Mundka to Bahadurgarh (11.50 km) as part of Delhi Metro Phase III. The Bangalore Metro Rail Project of 42.3 km length is targeted for completion by December 2013. The first leg of 7 km hasalready been commissioned on 20 October 2011. The government also approved the implementation o fthe East-West Metro Corridor of 14.67 km length in Kolkata by Kolkata Metro Rail Corporation Ltd. (KMRCL). The project is targeted for completion by 31 January 2015. The Chennai Metro Rail Project of 46.5 km length by Chennai Metro Rail Ltd. (CMRL) at a total estimated cost of Rs.146000.000 Millions is targeted for completion by 31March 2015. The Kochi Metro Rail Project of 25.6 km by Kochi Metro Rail Limited (KMRL) at a completion cost ofRs.51818.000 Millions was also approved. In addition, metro rail projects are taken up in Mumbai on PPP basis for Versova -Andheri-Ghatkopar (11.07 km) and Charkop to Mankhurd via Bandra (31.87 km) and in Hyderabad(71.16 km) with viability gap funding (VGF) from the Government of India. Presently, the Government of Rajasthan is also implementing 7 km of metro rail with funding entirely from the state government.

HYDROCARBONS:

OIL AND GAS: Crude oil and natural gas production in 2012-13 were 0.6 per cent and 14.5 per cent less respectively compared to the previous fiscal. The refineries turned in a better performance with their cumulative 181 million tonnes crude throughput, almost 7 per cent more than the previous fiscal's achievement and a little over 2 per cent of the planned target for public and private/joint venture companies' crude oil production was 37.864 million tonnes as against the 2011-12 achievement of 38.089 million tonnes. The planned target for2012-13 was 40.046 million tonnes. For private/JV companies, natural gas production was 32.9 per cent less than the 2011-12 achievement. The decline in natural gas production (to 40,676 million cubic meters) was 14.5 per cent. The planned target was41,309 million cubic meters. Such a performance was not totally unexpected since the output from KG basin operated by Reliance Industries continued to fall. For private/JV companies, natural gas production was 32.9 percent less than the 2011-12 achievement. India may offer as many as 68 blocks or areas for exploration of oil and gas in the 10th round of New Exploration Licensing Policy (NELP) this year.

CBM: Coal Bed Methane is an unconventional energy segment in India. In 2012-13, the country's total methane production stood at approximately 0.32 million standard cubic m a day (mm s cm d), enough to generate approximately 80 MW of power, meeting the energy needs of a mere 40,000 urban middle-class households having one air conditioner each. The country began commercial production of CBM in 2007 and the companies involved in the market are consolidating. With a total of 33 blocks distributed so far, the policy has been successful in attracting substantial investments in CBM exploration.

SHALE GAS: Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs. Joining the global race to tap unconventional hydrocarbon sources to meet energy needs, India will launch its maiden bid round for exploration of shale gas during the 12th Plan Period (2012-17). The country is believed to have about 63 trillion cubic feet of recoverable shale gas reserves, more than 20 times the size of the country's largest gas deposit, KG-D6 block in the Krishna-Godavari basin off the Gondwana, Krishna-Godawari on-land, and Cauvery. A multi-organizational team of the Director General Hydrocarbans (DGH), Oil and Natural Gas Corporation (ONGC), Oil India Limited (OIL), Gas Authority of India Limited (GAIL) has been formed by the government to examine the existing data set and suggest a methodology for shale gas development in India. Further, a memorandum of agreement (MoU) between the Department of State, USA and Ministry of Petroleum and Natural Gas has been signed for assessment of shale gas resources in India, imparting training to Indian geo-scientists and engineers. Minister of Petroleum and his top aides have repeatedly promised that the government is on the verge of finalizing a policy on shale gas exploration.

REFINING: Total refining capacity of India increased from 187.4 MMT in 2011 to 215.1 MMT as on January 1, 2013, and is projected to reach 239.6 MMT in 2013-14 with capacity augmentation of existing refineries and commissioning of the Paradip Refinery. During the current financial year (April-November 2012-13), refinery production (crude throughput) is 141.45 MMT. The country is notonly self-sufficient in refining capacity for its domestic consumption but also substantially exports petroleum products. During 2011-12, the country exported 60.84 MMT of petroleum products worthRs.2664860.000 Millions.

FINANCIAL REVIEW

RESULTS OF OPERATIONS

During the, Gross Sales of the company grew by over 5.18% Y-o-Y with Net Sales from Operations at Rs.3854.354 Millions, as against Rs.3768.074 Millions in FY'12.

There was a cutback in the Staff Cost for the year. The Operational Profit, before making provision for Interest, Depreciation and Amortization, stood at Rs. 383.371 Millions for FY'13 as against Rs. 356.215 Millions in FY'12. Thus, the OPBITDA stood at over 9.94% of sales. A slim reduction can also be observed in the (Net)Finance charges in FY'13 as against FY'12.Thereby, the Profit Before Tax during the years urged by more than 21% and stood at Rs.90.007 Millions, as against Rs.0.001 Millions in the previous Financial Year.

SEGMENTAL OVERVIEW

The company operates under a single product segment i.e. Cables. The company mainly focuses on specialized cables which differentiates it from other cable players in the country.

FUTURE OUTLOOK

The vision of CORDS is to be recognized as a leading global player, providing products and services, offering comprehensive solutions to the electrical and data connectivity requirements of businesses as well as household users. Its focus is on capturing new markets by developing customers in new and existing territories, to provide new cables for special applications like solar, marine, low temperature cables, cables for automobiles etc.

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Guarantees issued by Bankers*	910.792	868.717
L/C’s negotiated by bank	43.628	102.315
In respect of Bill factored from banks/Factoring agency	147.899	250.946

*Bank Guaranties includes BG's amounting to Rs 327.560 Millions (PY 337.560 Millions) extended to Raw Materials suppliers for credit period extended to company and the same is accounted for in sundry creditors.

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2013

(Rs. In Millions)

S. No.	Particulars	Quarter Ended	Quarter Ended	Six Months Ended
		30.09.2013	30.06.2012	30.09.2013
		Un-audited	Un-audited	Un-audited
1	Income from Operations
	Gross Sales	684.944	515.225	1200.169
	Less: Excise Duty	55.182	44.654	99.835
	(a) Net Sales / Income from Operations (Net of Excise Duty)	629.763	470.571	1100.334
	(b) Other Operating Income	---	---	----
	Total Income from operations (net)	629.763	470.571	1100.334
2	Expenses
	(a) Cost of Material consumed	468.152	361.410	829.561
	(b) Changes in inventories of Finished goods, Work in Progress & Stock in Trade	31.732	1.029	32.761
	(c) Employees Benefit Expenses	33.435	27.197	60.633
	(d) Depreciation & Ammortisation Expense	12.564	12.405	24.969
	(e) Other expenses	34.311	30.692	65.003
	Total Expenses	580.194	432.733	1012.927
3	Profit from Operations before Other Income, Finance Costs & Exceptional Items (1-2)	49.568	37.838	87.406
4	Other Income	4.057	5.162	9.219
5	Profit from ordinary activities before Finance Costs & Exceptional Items (3+4)	53.625	43.000	96.626
6	Finance Costs	46.979	41.203	88.181
7	Profit from ordinary activities after Finance Costs but before Exceptional Items (5-6)	6.647	1.798	8.445
8	Exceptional Items	----	---	----
9	Profit(+)/ Loss(-) from Ordinary Activities before tax (7+8)	6.647	1.798	8.445
10	Tax Expense	2.157	0.583	2.740
11	Net Profit(+)/ Loss(-) from Ordinary Activities after tax (9-10)	4.490	1.214	5.705
12	Extraordinary Items	---	---	---
13	Net Profit (+)/Loss(-) for the period (11-12)	4.490	1.214	5.705
14	Paid-up equity share capital (Face Value of ?10/- per share)	114.278	114.278	114.278
15	Reserve excluding revaluation Reserves as per balance sheet of previous accounting year	---	---	--
16.i	Earnings Per Share (EPS) (before extraordinary items) (a) Basic EPS before Extraordinary items for the period, for the year to date and for the previous (not to be annualised) (Rs.)	0.31	0.07	0.42
	(b) Diluted EPS before Extraordinary items for the period, for the year to date and for the previous (not to be annualised) (Rs.)	0.31	0.07	0.42
16.ii	Earnings Per Share (EPS) (after extraordinary items) (a) Basic EPS after Extraordinary items for the period, for the year to date and for the previous (not to be annualised) (Rs.)	0.31	0.07	0.42
	(b) Diluted EPS after Extraordinary items for the period, for the year to date and for the previous (not to be annualised) (Rs.)	0.31	0.07	0.42

SELECT INFORMATION FOR THE QUARTER ENDED 30TH SEPTEMBER, 2013

A	PARTICULARS OF SHAREHOLDING
	1 Public Shareholding -
	(a) Number of shares	4781342	4781342	4781342
	(b) Percentage of shareholding	41.84	41.84	41.84
	2 Promoters and Promoter group Shareholding **
	a) Pledged/Encumbered
	- Number of shares	---	---	---
	- Percentage of shares (as a % of the total shareholdings of promoter and promoter group)	---	---	---
	- Percentage of shares (as a % of the total share capital of company)	---	---	---
	b) Non-encumbered
	- Number of shares	6646438	6646438	6646438
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
	- Percentage of shares (as a % of the total share capital of the company)	58.16	58.16	58.16

	Particulars	3 months ended 30.09.2013
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed of during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES

(Rs in Millions)

Particular	30.09.2013 Un-Audited
A EQUITY AND LIABILITIES
1 Shareholders Funds
a) Share Capital	130.278
b) Reserves & Surplus	921.784
Sub-total- Shares holders' funds	1052.062
2 Non- Current Liabilities
a) Long-term borrowings	193.340
b) Deferred Tax-liabilities (net)	60.440
c) Other long-term liabilities	20.376
d) Long-term provisions	8.988
Sub-total-Non-current liabilities	283.144
3 Current liabilities
a) Short-term borrowings	560.343
b) Trade payables	737.183
c) Other current liabilities	151.860
d) Short-term provisions	7.852
Sub-total current liabilities	1457.238
TOTAL-EQUITY AND LIABILITIES	2792.444
B ASSETS
1 Non-current assets
a) Fixed assets	1075.871
b) Long-term loans and advances	21.366
Sub-total-Non-current assets	1097.236
2 Current Assets
a) Current Investment	0.200
b) Inventories	512.889
c) Trade receivables	686.944
d) Cash and cash equivalents	175.466
e) Short-term loans and advances	258.427
f) Other current assets	61.281
Sub-total-current assets	1695.208
TOTAL ASSETS	2792.444

Notes:

i) The above results, as reviewed by the Audit Committee, have been taken on record by the Board of Directors of the Company at its meeting held on 14th November 2013, and a limited review of the same has been carried out by the Statutory Auditors of the Company.

ii) The Company operates in one segment only.

iii) The figures are regrouped/rearranged wherever necessary.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Tools and Instrument
• Generator
• Office Equipments
• Computer
• Furniture and Fixture
• 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 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.62.13
UK Pound	1	Rs.102.25
Euro	1	Rs.84.72

INFORMATION DETAILS

Report Prepared by :

VRN

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.