1. Summary Information

		Country	India
Company Name	RAMKRISHNA FORGINGS LIMITED	Principal Name 1	Mr. Mahabir Prasad Jalan
Status	Satisfactory	Principal Name 2	Mr. Naresh Jalan
		Registration #	21-034281
Street Address	Ramkrishna Chambers, 72, Shakespeare Sarani, Kolkata – 700017, West Bengal, India
Established Date	12.11.1981	SIC Code	--
Telephone#	91-33-39840999	Business Style 1	Manufacturer
Fax #	91-33-39840998	Business Style 2	--
Homepage	Not Available	Product Name 1	Automobile
# of employees	925 (Approximately)	Product Name 2	Defence
Paid up capital	Rs. 210,959,000/-	Product Name 3	Mining and Bearing Industry
Shareholders	Shareholding Of Promoter And Promoter – 43.86% Public Shareholding – 56.14%	Banking	DBS Bank
Public Limited Corp.	YES	Business Period	33 Years
IPO	YES	International Ins.	--
Public Enterprise	YES	Rating	Ba (44)
Related Company
Relation	Country	Company Name	CEO
Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence	--	Riddhi Portfolio Private Limited Eastern Credit Capital Private Limited (100% subsidiary of Riddhi Portfolio Private Limited)	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,894,640,000	Current Liabilities	1,077,232,000
Inventories	1,491,873,000	Long-term Liabilities	2,290,296,000
Fixed Assets	2,422,400,000	Other Liabilities	355,363,000
Deferred Assets	0,000	Total Liabilities	3,722,891,000
Invest& other Assets	454,893,000	Retained Earnings	2,202,293,000
		Net Worth	2,540,915,000
Total Assets	6,263,806,000	Total Liab. & Equity	6,263,806,000
Total Assets (Previous Year)	4,926,147,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	4,038,970,000	Net Profit	11,0288,000
Sales(Previous yr)	5,012,629,000	Net Profit(Prev.yr)	242,892,000

MIRA INFORM REPORT

Report Date :

21.01.2014

IDENTIFICATION DETAILS

Name :	RAMKRISHNA FORGINGS LIMITED
Registered Office :	Ramkrishna Chambers, 72, Shakespeare Sarani, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.11.1981
Com. Reg. No.:	21-034281
Capital Investment / Paid-up Capital :	Rs. 210.959 Millions
CIN No.: [Company Identification No.]	L74210WB1981PLC034281
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Forged and Rolled Components for the Railways, Automobile, Defence, Mining and Bearing Industry.
No. of Employees :	925 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 10000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears dip in sales and profit of the company in 2013. However, liquidity position of the company seems to be decent. Trade relations reported to be fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based bank facilities: BBB+ // Non fund based bank facilities – A2
Rating Explanation	Moderate credit quality and average credit risk.
Date	October 2013

Rating Agency Name	ICRA
Rating	Non fund based bank facilities – A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	October 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.

INFORMATION PARTED BY

Name :	Mr. Uday Choubey
Designation :	Accounts Executive
Contact No.:	91-33-39840999
Date :	16.01.2014

LOCATIONS

Registered Office/ Corporate Office :	Ramkrishna Chambers, 72, Shakespeare Sarani, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-39840999
Fax No.:	91-33-39840998
E-Mail :	neha.gupta@ramkrishnaforgings.com
Website :	www.ramkrishnaforgings.com
Location:	Owned
Factory 1 :	Plot No. M-6, Phase VI, Gamaria, Jamshedpur-832108, Jharkhand, India
Tel. No.:	91-657-3204242/3204249
Fax No.:	91-657-2202814
E-Mail :	forgings-division@ramkrishnaforgings.com
Factory 2 :	7/40, Duffer Street, Liluah, Howrah - 711 204, West Bengal, India
Tel. No.:	91-33-32550894
Fax No.:	91-33-26545729
Factory 3 :	Plot No. M-15,16 and NS-26, Phase VII, Adityapur Industrial Area, Jamshedpur-832109, Jharkhand, India
Tel. No.:	91-657-3984999/ 3984900
Fax No.:	91-0657-3984998
E-Mail :	cnc-division@ramkrishnaforgings.com

DIRECTORS

As on 31.03.2013

Name :	Mr. Mahabir Prasad Jalan
Designation :	Chairman
Qualification :	B. Tech
Date of Appointment :	12.11.1981
Name :	Mr. Naresh Jalan
Designation :	Managing Director
Qualification :	MBA (Marketing and Finance)
Date of Appointment :	05.11.2001
Name :	Mr. Pawan Kumar Kedia
Designation :	Finance Director
Name :	Mr. Padam Kumar Khaitan
Designation :	Non-Executive Director
Name :	Mr. Satish Kumar Mehta
Designation :	Non-Executive Director
Name :	Mr. Subhasis Majumdar
Designation :	Nominee Director
Name :	Mr. Surendra Mohan Lakhotia
Designation :	Non-Executive Director
Name :	Mr. Yudhisthir Lal Madan
Designation :	Additional Director
Name :	Mr. Ram Tawakya Singh
Designation :	Additional Director
Name :	Mr. Ravi Lekhrajani
Designation :	Additional Director

KEY EXECUTIVES

Name :	Mr. Rajesh Mundhra
Designation :	Company Secretary
Name :	Mr. Alok Kumar Sharda
Designation :	Chief Financial Officer
Name :	Mr. Uday Choubey
Designation :	Accounts Executive

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	1544250	6.07
Bodies Corporate	9613913	37.79
Sub Total	11158163	43.86
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11158163	43.86
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1438917	5.66
Foreign Institutional Investors	50000	0.20
Any Others (Specify)	8085900	31.78
Any Other	8085900	31.78
Sub Total	9574817	37.64
(2) Non-Institutions
Bodies Corporate	1467311	5.77
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	870327	3.42
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2009913	7.90
Any Others (Specify)	358909	1.41
Non Resident Indians	3223	0.01
Clearing Members	355686	1.40
Sub Total	4706460	18.50
Total Public shareholding (B)	14281277	56.14
Total (A)+(B)	25439440	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)	25439440	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Forged and Rolled Components for the Railways, Automobile, Defence, Mining and Bearing Industry.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Carbon Steel/Non-Alloy Steel Forgings/Alloy Steel Forgings (Rough)	7326.19.10
Alloy Steel Forgings/Non-Alloy Steel Forgings (Machined)	8708-99-00

Exports :

Products :

Finished Good

Countries :

· USA

· Italy

· Germany

· Brazil

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Steel Forgings	MT	37700*	31234.46
Ring Rolling Facilities	MT	24000	16438.00

Notes:

* The Company’s Installed capacity has been increased by 3600 ton in the month of January, 2011 with the installation of Maxi-Press at its Plant I at Jamshedpur

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

925 (Approximately)

Bankers :

• DBS Bank
• Export Import Bank of India
• Hongkong and Shanghai Banking Corporation Bank
• ICICI Bank
• IDBI Bank
• Indian Overseas Bank
• Standard Chartered Bank
• State Bank of India

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Term Loan	1268.403
Short-term Borrowings
Loans repayable on demand
From Bank-Working Capital Loan	975.757
Total	2244.160

Secured Loan	31.03.2012 (Rs. in Millions)
From Banks
Term Loan	706.845
Premises Loan	-
Loans repayable on demand
From Bank – Working Capital Loan	622.467
Total	1329.312

Banking Relations :	--
Statutory Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	1B, Old Post Office Street, Kolkata – 700001, West Bengal, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Bengal Intelligent Park, Building Alpha, 1^st Floor, Block-EP and GP, Sector-V, Salt Lake Electronics Complex, Kolkata- 700091, West Bengal, India
Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence :	· Riddhi Portfolio (Private) Limited · Eastern Credit Capital Limited (100% subsidiary of Riddhi Portfolio (Private) Limited) · Ramkrishna Rail and Infrastructure Private Limited · Clifftop Infrabuild Private Limited · Northeast Infra Properties Private Limited
Subsidiary of the company:	· Globe Forex and Travels Limited
ESOP Trust of the Company :	Ramkrishna Forgings Employee Welfare Trust

CAPITAL STRUCTURE

As on 20.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
29750000	Equity Shares	Rs.10/- each	Rs. 297.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25439440	Equity Shares	Rs.10/- each	Rs. 254.394 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
29750000	Equity Shares	Rs.10/- each	Rs. 297.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21095940	Equity Shares	Rs.10/- each	Rs. 210.959 Millions

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	210.959
(b) Reserves & Surplus	2202.293
(c) Money received against share warrants	127.663
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	2540.915
(3) Non-Current Liabilities
(a) long-term borrowings	1275.287
(b) Deferred tax liabilities (Net)	318.320
(c) Other long term liabilities	0.000
(d) long-term provisions	2.107
Total Non-current Liabilities (3)	1595.714
(4) Current Liabilities
(a) Short term borrowings	1015.009
(b) Trade payables	534.943
(c) Other current liabilities	542.289
(d) Short-term provisions	34.936
Total Current Liabilities (4)	2127.177
TOTAL	6263.806
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2396.792
(ii) Intangible Assets	25.608
(iii) Capital work-in-progress	396.247
(iv) Intangible assets under development	0.000
(b) Non-current Investments	58.646
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	676.607
(e) Other Non-current assets	6.720
Total Non-Current Assets	3560.620
(2) Current assets
(a) Current investments	0.000
(b) Inventories	1491.873
(c) Trade receivables	802.743
(d) Cash and cash equivalents	29.915
(e) Short-term loans and advances	235.207
(f) Other current assets	143.448
Total Current Assets	2703.186
TOTAL	6263.806

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		181.485	164.285
2] Share Application Money		0.000	181.406
3] Employee Stock Option Outstanding		0.000	15.230
4] Reserves & Surplus		1702.820	1173.790
5] (Accumulated Losses)		0.000	0.000
NETWORTH		1884.305	1534.711
LOAN FUNDS
1] Secured Loans		1329.312	1781.180
2] Unsecured Loans		201.244	208.643
TOTAL BORROWING		1530.556	1989.823
DEFERRED TAX LIABILITIES		252.880	244.328
TOTAL		3667.741	3768.862
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2463.655	2037.663
Capital work-in-progress		41.415	225.137
INVESTMENT		0.050	14.191
DEFERRED TAX ASSETS		0.000	0.000
Advances Recoverable from ESOP Trust		0.000	93.925
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1310.075	1149.448
	Sundry Debtors	706.766	575.871
	Cash & Bank Balances	3.000	22.633
	Other Current Assets	143.246	0.000
	Loans & Advances	257.940	206.921
Total Current Assets		2421.027	1954.873
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	788.854	513.754
	Other Current Liabilities	418.688	0.220
	Provisions	50.864	42.953
Total Current Liabilities		1258.406	556.927
Net Current Assets		1162.621	1397.946
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		3667.741	3768.862

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4038.970	5012.629	4096.861
		Other Income	13.297	6.530	10.858
		TOTAL (A)	4052.267	5019.159	4107.719
Less	EXPENSES
		Increase/ Decrease in Stock	(180.000)	(95.639)	(99.827)
		Raw Materials Consumed	2265.470	2872.408	2391.126
		Employee Benefits Expenses	280.699	268.045	0.000
		Power and Fuel	444.522	464.802	0.000
		Other Expenses	625.067	692.528	0.000
		Manufacturing and Other Expenses	0.000	0.000	892.912
		Payment to and provisions for Employees	0.000	0.000	219.430
		TOTAL (B)	3435.758	4202.144	3403.641
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		616.509	817.015	704.078
Less	FINANCIAL EXPENSES (D)		204.248	187.889	161.146
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		412.261	629.126	542.932
Less/ Add	DEPRECIATION/ AMORTISATION (F)		226.221	270.674	209.789
	PROFIT BEFORE TAX (E-F) (G)		186.040	358.452	333.143
Less	TAX (I)		75.752	115.560	112.550
	PROFIT AFTER TAX (G-I) (J)		110.288	242.892	220.593
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		848.650	668.651	503.245
Less	APPROPRIATIONS
		Dividend and Tax	0.000	2.208	0.000
		Transfer to General Reserve	10.000	18.500	17.000
		Dividend	25.109	36.297	32.857
		Tax on Dividend	4.269	5.889	5.330
	BALANCE CARRIED TO THE B/S		919.560	848.649	668.651
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	519.761	453.458	487.072
		Die design and preparation charged (recovered)	2.506	4.919	1.238
	TOTAL EARNINGS		522.267	458.377	488.310
	IMPORTS
		Capital Equipment’s	18.302	123.986	70.970
		Components & Spares Parts	10.467	15.735	24.405
	TOTAL IMPORTS		28.769	139.721	95.375
	Earnings Per Share (Rs.)
	Basic		5.89	13.61	13.43
	Diluted		5.89	13.61	13.06

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013
	1^st Quarter	2^nd Quarter
	UnAudited	UnAudited
Net Sales	1084.500	969.200
Total Expenditure	865.200	842.800
PBIDT (Excl OI)	119.300	126.400
Other Income	3.000	5.900
Operating Profit	122.300	132.200
Interest	41.000	49.000
Exceptional Items	0.000	0.000
PBDT	81.3000	83.200
Depreciation	58.100	60.100
Profit Before Tax	23.000	23.100
Tax	7.900	8.400
Provisions and contingencies	0.000	0.000
Profit After Tax	15.200	14.700
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	15.200	14.700

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.72	4.84	5.37
Net Profit Margin (PBT/Sales)	(%)	4.61	7.15	8.13
Return on Total Assets (PBT/Total Assets}	(%)	3.20	7.34	8.34
Return on Investment (ROI) (PBT/Networth)		0.07	0.19	0.22
Debt Equity Ratio (Total Debt/ Debt)		0.90	0.81	1.30
Current Ratio (Current Asset/Current Liability)		1.27	1.92	3.51

LOCAL AGENCY FURTHER INFORMATION

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

FINANCIAL AND PERFORMANCE REVIEW:

· Net Sales decreased by 19.42 percent from 5012.600 Millions in 2011-12 to Rs. 4039.000 Millions in 2012-13.

· EBIDTA decreased by 24.54 percent from Rs.817.000 Millions in 2011-12 to Rs. 616.500 Millions in 2012-13.

· PAT decreased by 54.58 percent from Rs.242.800 Millions in 2011-12.to Rs.110.300 Millions in 2012-13.

With the onset of the slowing industrial growth and weakening investment sentiment across sectors, the strong growth phase of the domestic commercial vehicle (CV) industry came to standing halt in 2012-13.

M and HCV segment bore the brunt of slowing industrial activity with weak investment sentiment and the impact of significant fleet capacity addition over the past three years, especially in the heavy-duty categories of the trucking market. Within the MandHCV segment, while buses saw a recovery in volumes compared to the previous year on back of healthy off take from private segment and improving order inflows from STUs, the contraction in demand for the higher tonnage category of trucks such as tippers, tractor trailers and multi-axle vehicles (MAVs) has been the sharpest.

The cumulative production of commercial vehicles fell from 929136 vehicles in 2011-12 to 831744 vehicles in 2012-13 registering a fall of around 10.48%.

However the production of medium and heavy commercial vehicles (M and HCVs) segment registered a de-growth at 27.61 percent during the year 2012-2013 and light commercial vehicles registered a marginal growth of 1.63 percent

The overall domestic sales of the commercial vehicles segment registered a de-growth from 809499 vehicles in 2011-12 to 793150 vehicles in 2012-13 registering a de-growth of 2.02 percent. The medium and heavy commercial Vehicles (M and HCVs) segment registered a sharp downfall of 23.18 percent during the year 2012-2013 but light commercial vehicles managed to register a growth of 14.04 percent.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Forging has unique value among manufacturing processes. The industry is a key link between critical manufacturing segments-metal suppliers and end user industries. Forgings are intermediate products used widely by original equipment manufacturers (OEMs).

It is a cost-effective way to produce net-shape or near-net-shape components. In some materials, it is the only way. Virtually all metals can be forged, making an extensive range of physical and mechanical properties available in products with the highest structural integrity.

Briefly, the composition of the Indian forging industry can be categorized into four sectors - large, medium, small and tiny. The organized sector accounts for about 65-70% of the total forging production in the country, while unorganized players (who are mainly small and tiny units) cater mainly to job work and the replacement market or tier 3 or tier 4 component manufacturers.

The India automobile market has been the subject of significant attention from the auto global players, with many of them targeting India as a manufacturing hub for small cars. India holds significant potential because of its low-cost manufacturing advantage and the opportunity for sales-volume growth offered by its domestic market over the next decade.

The country's Rs. 250000.000 Millions forging industry is under stress due to slowdown in the automotive sector and increasing input costs. The sector, which had grown by 18 per cent during 2011-12 over the previous financial year, saw a flat business during 2012-13, mainly impacted by the slowdown in the automotive industry and increase in costs. In addition, the sector is dependent on the automotive business which contributes to about 70per cent of total business. The forging industry has installed capacity of around 3.75million tonnes a year and achieved capacity utilization of around 2.8 million tonnes. Infact, this could have gone up but for the overall slowdown. The industry players arecaught between its suppliers, who are increasing costs and original equipment suppliers (including automotive sector players), who want to keep tight control on costs citing slowdown.

The commercial vehicle industry has always been linked to the country's industrial activities and the overall GDP. Forging industry is a basic industry and such industries tend to grow in a country in relation to the rate of growth of its GDP. As far as India is concerned, they expect their GDP to continue to grow and therefore, the basic industries will grow and so will the industry.

Low penetration and distribution reach will act as a huge trigger for the CV industry. India’s bus and truck penetration vs. GDP per capita is far lower than the developed and emerging markets and thus there exists a huge headroom for growth with the pick-up in economic activities. With economic revival, increasing public and private spending on infrastructure and higher penetration of financing facilities, it is expected that the growth trend in each segment of commercial vehicles should continue in the coming years.

In coming years, rapid expansion of cities to suburban areas will also create more demand for mass transportation vehicles in the country. It is expected that a major part of India will be well-connected by the end of 2013-14, which will fuel the demand for commercial passenger carriers in the country.

India is the world's second-largest heavy commercial vehicle market. It is observed that infrastructure boom and emergence of hub and spoke model, among other factors will give a new dimension to the medium and heavy goods carrier commercial vehicles' sector in India.

PERFORMANCE SCENARIO

The year 2012-2013 was not a very good year for the Industry as there was a poor demand for the vehicles and also there was a decrease in production trends during the year as compared to the last year.

With the onset of the slowing industrial growth and weakening investment sentiment across sectors, the strong growth phase of the domestic commercial vehicle (CV) industry came to standing halt since the second half of 2011-12. After experiencing a volume growth of over 30% during 2009-10 and 2010-11, the buoyancy in the domestic CV industry started dwindling since March,2012 onwards as headwinds started gaining momentum.

MandHCV segment bore the brunt of slowing industrial activity with weak investment sentiment and the impact of significant fleet capacity addition over the past three years, especially in the heavy-duty categories of the trucking market. Within the M and HCV segment, while buses saw a recovery in volumes compared to the previous year on back of healthy off take from private segment and improving order inflows from STUs, the contraction in demand for the higher tonnage category of trucks such as tippers, tractor-trailers and multi-axle vehicles (MAVs) has been the sharpest.

The cumulative automobile production data for April 2012 - March 2013 showed a growth of only 1.20 percent over April 2011-March 2012.

In 2012-2013, production of passenger vehicles segment and two wheelers segment grew by2.78 percent and 1.90 percent respectively while the commercial vehicles and three-wheelers segment saw a decline of 10.48 percent and 4.50 percent respectively. However the production of the light commercial vehicles registered a growth of 1.63 percent this year.

DOMESTIC SALES

Passenger Vehicles segment registered a growth of 2.15 percent during 2012-2013 as compared to the last year. In 20122013 whereas sales of utility vehicles and vans grew by52.20 percent and 1.08 percent respectively, sales of Passenger Cars fell by6.69%.

The overall domestic sales of the commercial vehicles segment registered a decrease from 809499 vehicles to 793150 vehicles registering a decline of 2.02 percent during2012-2013 as compared to the same period last year. The medium and heavy commercial Vehicles (M and HCVs) segment registered a sharp downfall of 23.18 percent during the year2012-2013 but light commercial vehicles managed to register a growth of 14.04 percent.

The sale of three wheelers sales grew by 4.87 percent in 2012-2013 and two wheelers sales registered a growth of 2.90 percent during 2012-2013.

OUTLOOK

While the long term fundamentals of the Indian economy remain robust, the sluggish global environment has impacted sentiments in the domestic market in the short term. Butit is expected to be only a temporary phenomenon and prospects for 2013-14 look better than last year. Growth in sales would be driven by the expected improvement in macro conditions on the domestic front, moderation in interest rates and revival in consumer confidence, mainly after the initial two quarters. Consequently, the deferred purchases witnessed in second half of 2012 are expected to get converted into sales next year. The auto industry is likely to gain considerably from the various initiatives on infrastructure development, rural focus and the improved road infrastructure.

It is believed that a) the gradual traction in market share from railways, b) changing landscape of the logistics industry towards an organized one, and c) stricter implementation of emission and anti-overloading norms would continue to support demand for CVs. Overall, it is expected that the industry would start seeing improvement from2013-14 onwards driven by pick-up in replacement demand as well as low-base effect. However the sustainability of the demand would continue to remain dependent on the improvement in macro-economic environment and investment sentiment.

Global automotive giants are looking at India as a competent supply base and are shopping for their components here and Indian companies have even been acquiring companies abroad. Considering the confidence of foreign automotive majors, auto component manufacturers and original equipment manufacturers, who are outsourcing their operations to India, it is quite likely that the forging industry will be foremost among the segments that will steer manufacturing growth here.

THE VISION 2020 OF RAILWAYS:

"Indian Railways shall provide efficient, affordable, customer-focused and environmentally sustainable integrated transportation solutions. It shall be a vehicle of inclusive growth, connecting regions, communities, ports and center of industry, commerce, tourism and pilgrimage across the country. The reach and access of its services will be continuously expanded and improved by its integrated team of committed, empowered and satisfied employees and by use of cutting-edge technology."

In the Railway Budget for the year 2012-13 the government has tabled significant programmes as mentioned below:

• Introduction of 160/200 kmph Self Propelled Accident Relief Trains.

• Induction of crash worthy LHB coaches with anti-climb feature.

• A new Forged Wheel Factory at Rae Bareli in collaboration with Rashtriya Ispat Nigam Limited.

• A Coach Manufacturing Unit in Sonepat District (Haryana) in collaboration with State Government.

• Bikaner and Pratapgarh workshops to undertake POH of BG wagons.

• A workshop for repair and rehabilitation of motorized bogies at Misrod (MadhyaPradesh).

• A new wagon maintenance workshop in Kalahandi (Odisha).

• Deployment of new generation energy efficient electric locomotives and EMUs.

AWARDS

The Company has during the year 2012-13 received the under mentioned awards.

• New product development from TML Drivelines Limited.

• Cost Reduction from TML Drivelines Limited.

• Lean Supply Chain through MASOP elimination from TML Drivelines Limited

• Supplier of the Year 2012 from Automotive Axles Limited, Mysore for Quality, Consistency, New Product Development, Schedule Adherence, Cost Effectiveness.

• Star Performer under Auto Components from EEPC

• Star Performer under Steel Forgings from EEPC.

• CII(ER),SHE Award 2012-13.

• SAP ACE Award for customer excellence 2012 in the best run in RandD.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Vat Deferrement Payment scheme	6.884
Short-term Borrowings
Loans Repayable on demand From Bank	39.252
	46.136

PARTICULARS	31.03.2012 (Rs. in Millions)
From Banks
Term Loan	100.000
VAT Deferrement Payment Scheme	13.767
Loans repayable on demand :
From Bank	0.979
Loans and Advances from Related Parties	86.498
Total	201.244

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10455941	07/09/2013	100,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JAMSHEDPUR, PRATAP TOWER, BISTUPUR, JAMSHEDPUR, JHARKHAND - 831001, INDIA	B87905683
2	10443556	29/07/2013	220,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B82359167
3	10437673	01/08/2013 *	610,000,000.00	DBS BANK LIMITED. (ACTING AS AN SECURITY TRUSTEE)	KOLKATA BRANCH, 4A, NANDALAL BASU SARANI, KOLKATA, WEST BENGAL - 700071, INDIA	B81110652
4	10429409	30/05/2013	1,354,459,000.00	LANDESBANK BADEN-WURTTEMBERG	AM HAUPTBAHNHOF 2, 70173 STUTTGART, FEDERAL REPUB LIC OF GERMANY, STUTTGART, - 70173, GERMANY	B76445428
5	10421002	05/07/2013 *	150,000,000.00	DBS BANK LIMITED	4A, NANDALAL BASU SARANI, KOLKATA, WEST BENGAL - 700071, INDIA	B79985693
6	10419296	19/03/2013	370,000,000.00	DEVELOPMENT CREDIT BANK LIMITED	601 AND 602, PENINSULA BUSINESS PARK, 6TH FLOOR, TOWER A, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI, MAHARASHTRA - 400013, INDIA	B73054074
7	10387878	05/07/2013 *	1,000,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B83470831
8	10362255	28/06/2012	550,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B42288670
9	10343181	14/03/2012	165,000,000.00	DEVELOPMENT CREDIT BANK LIMITED	601 AND 602, PENINSULA BUSINESS PARK, 6TH FLOOR, TOWER A, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI, MAHARASHTRA - 400013, INDIA	B35453703
10	10329154	13/01/2012	75,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	HONGKONG HOUSE, 31 B B D BAG, KOLKATA, WEST BENGAL - 700001, INDIA	B29600269

* Date of charge modification

UNAUDITED FINANCIAL RESULT FOR THE QUARTER ENDED 30^TH JUNE, 2013

(Rs. In Millions)

Particulars	Quarter –ended
	30.06.2013
	Unaudited
Income from Operations
Gross Sales
Domestic	916.753
Export	179.8690
	1096.613
Less : Excise Duty	99.071
Other Operating Revenues	86.945
Total Income from Operations (Net)	1084.487
Expenses
Consumption of Raw Materials	611.703
Changes in inventories of Finished Goods, Work in Progress and Stock-in-Trade	4.027
Employee Benefit Expenses	71.126
Power and Fuel	116.409
Depreciation and Amortisation	58.110
Other Expenses	161.917
Total	1023.292
Profit/ (Loss) from Operations before other Income and Finance Cost	61.195
Other income	2.963
Profit/ (Loss) from Ordinary Activities before Finance Cost	64.158
Finance Costs	41.020
Profit/ (Loss) from ordinary Activities after Finance Cost and before tax	23.138
Tax Expenses	7.900
Net Profit/ (Loss) from Ordinary Activities After Tax	15.238
Paid up Equity Share Capital (Face value of Rs. 10/- each)	251.094
Reserves excluding Revaluation Reserve
Earning per shares of Rs. 10/- each
Basic	0.61
Diluted (not annualized)	0.61

SELECT INFORMATION FOR THE QUARTER ENDED 30^TH JUNE, 2013

Particulars	Quarter –ended
	30.06.2013
Public Shareholding
-Number of Shares	14282277
-Percentage of Shareholding	56.88
Promoter and Promoter Group Shareholding
Pledged / Encumbered
-Number of shares	1900000
-Percentage of shares (as a % of the total shareholding of promoter and promoter group)	17.55
-Percentage of shares (as a % of the total share capital of the company)	7.57
Non- encumbered
-Number of shares	8927163
-Percentage of shares (as a % of the total shareholding of promoter and promoter group)	82.45
-Percentage of shares (as a % of the total share capital of the company)	35.55

Particulars	3 months ended 30.06.2013
Investor Complaint
Pending at the beginning of the quarter	Nil
Received during the quarter	3
disposed off during the quarter	3
Remaining unresolved at the end of the quarter	Nil

NOTE:

1. The above Unaudited Financial Results as reviewed by the Audit Committee were approved by the Board of Directors at its meeting held on August 10, 2013. The Statutory Auditors has conducted Limited Review of the above Financial Results.

2.
The figures for the quarter ended March 31, 2013 are the balancing figures between audited figures in respect of the full financial year ended March 31, 2013 and the unaudited published year to date figures upto December 31, 2012, being the end of the third quarter of the respective financial years, which were subjected to a limited review.

3.
During the financial year 2012-13 the Company had paid managerial remuneration of Rs. 33.829 Millions out of which Rs. 12.048 Millions was in excess of the limits as laid down in the section 309(3) read with schedule XIII of the Companies Act, 1956. Since the payment of the remuneration in excess of the limit requires approval of the Central Government the company had made an application to the Central Government for payment of the excess remuneration and the approval is awaited.

4.
The Company operates only in one Segment i.e. Forgings.

5.
The Company on April 03, 2013 has allotted 289,000 equity shares of Rs. 10/- at a price of Rs. 130/- each, after the receipt of the balance 75 % of the issue price of Rs. 130 per share, to M/s Eastern Credit Capital (P) Limited, Promoter, by conversion of 289000 warrants into 289000 equity shares of Rs. 10/- each. The Company in accordance with the Shareholder approval on March 20, 2013 has also allotted on preferential basis 3724500 equity shares at the rate of Rs. 132.75 per share to M/s. Wayzata II Indian Ocean Limited on April 03, 2013. Consequently the Issued, Subscribed and Paid Share Capital has increased to Rs. 251.094 Millions from Rs. 210.959 Millions. The Company has received Rs. 522.605 Millions from the above issue and out of that Rs. 292.727 Millions has been utilised for the project and the balance of Rs. 229.878 Millions is lying in the banks.

6.
During the quarter, M/s. Globe Forex and Travels Ltd has become a 100 % subsidiary of the Company w.e.f April 08, 2013.

7.
Figures for the previous periods are re-arranged, wherever necessary, to conform to the figures of the current period.

FIXED ASSETS

· Land

· Factory Shed and Building

· Office Building

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Computer Hardware

· Office Equipments

· Air Condition Machine

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.61.63
UK Pound	1	Rs.101.25
Euro	1	Rs.83.42

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.