MIRA INFORM REPORT

Report Date :

14.06.2014

IDENTIFICATION DETAILS

Name :	BHARAT HEAVY ELECTRICALS LIMITED
Registered Office :	BHEL House, Siri Fort, New Delhi – 110049
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.11.1964
Com. Reg. No.:	55-004281
Capital Investment / Paid-up Capital :	Rs.4895.200 Millions
CIN No.: [Company Identification No.]	L74899DL1964GOI004281
TAN No.: [Tax Deduction & Collection Account No.]	DELB06995C / DELB01364G / DELB01591C / DELB05940E
PAN No.: [Permanent Account No.]	AAACB4146P
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil and Gas and Defence.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1220000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists
Comments :	Subject is a leading player in India’s power and industrial electrical equipment markets. It is a well-established company having track record. The rating reflects BHEL’s leading position in the power and industrial electrical equipment markets in India marked by healthy order look and strong financial risk profile. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating AAA
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	22.03.2013

Rating Agency Name	CRISIL
Rating	Short term rating = “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	22.03.2013

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 has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
BHARAT HEAVY ELECTRICALS LIMITED		EPFO	EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.120.18 LAKHS	AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO WEBSITE 31-MAR-2012

INFORMATION DENIED

Management non-Cooperative (Tel No.: 91-40-23183585)

LOCATIONS

Registered Office :	BHEL House, Siri Fort, New Delhi – 110049, India
Tel. No.:	91-11-66337000 (Multiple Lines)
Fax No.:	91-11-26493021 / 26492534
E-Mail :	cmdbs@asiad.bhel.co.in md@bhpvl.com tj@bheltry.co.in inder@bhel.in
Website :	http://www.bhel.com http://www.bhelhyderabad.com
Head Office :	17, Rajasthan Voyoc Nagar, G.T. Kanal Road, Delhi, India
Branch Office 1:	Ramchandrapuram, Hyderabad – 502032, Andhra Pradesh, India
Branch Office 2:	Piping Centre , 80, G. N. Chetty Road, Chennai-600017, Tamilnadu, India
Plant Location :
BHEL Manufacturing Units :	Bangalore Electronic Division Electronics Systems Division Electro Porcelain Division Bhopal Heavy Electrical Plant Goindwal Industrial Valves Plant Haridwar Heavy Electrical Equipment Plant Central Foundry Forge Plant Hyderabad Heavy Power Equipment Plant Jagdishpur Insulator Plant Centralised Stamping Unit P.O. BHEL, Jhansi – 284129, Uttar Pradesh, India Transformer Plant Rudrapur Components Fabrication Plant Ranipet Boiler Auxiliaries Plant Tiruchirappalli High Pressure Boiler Plant Seamless Steel Tube Plant Thirumayam · Power Plant Piping Unit
BHEL Repairs units :	Mumbai Electrical Machine Repair Plant Varanasi Heavy Equipment Repair Plant
BHEL Subsidiaries :	Visakhapatnam Bharat Heavy Plate and Vessels Limited Kasaragod BHEL Electrical Machine Limited

DIRECTORS

As on 31.03.2013

Name :	Mr. B. Prasada Rao
Designation :	Chairman and Managing Director
Name :	Ms. Kusumjit Sidhu
Designation :	Additional Secretary and Financial Adviser
Name :	Mr. Ambuj Sharma
Designation :	Joint Secretary
Name :	Mr. Trimbakdas S. Zanwar
Designation :	Director
Name :	Mr. S. Ravi
Designation :	Director
Name :	Mr. Atul Saraya
Designation :	Director (Power)
Name :	Mr. P.K. Bajpai
Designation :	Director (Finance)
Name :	Mr. R. Krishnan
Designation :	Director (HR)
Name :	Mr. W.V.K. Krishna Shankar
Designation :	Director (IS&P)

KEY EXECUTIVES

Name :	Mr. I.P. Singh
Designation :	Company Secretary
Name :	Mr. B. Shankar
Designation :	Human Resource and Corporate Communication
Name :	Mr. T.N. Veeraraghavan
Designation :	Boiler Auxiliaries Plant
Name :	Mr. W.V.K. Krishna Shankar
Designation :	Industry Sector
Name :	Mr. A. Dasgupta
Designation :	Corporate Systems and Information Technology
Name :	Mr. Umesh Mathur
Designation :	Transmission Business
Name :	Mr. A.K. Dave
Designation :	Transformer Plant
Name :	Mr. C.K. Srikhande
Designation :	Power Sector-Northern Region
Name :	Mr. K.S. Mathur
Designation :	Power Sector-Management Services
Name :	Mr. Atul Sobti
Designation :	Industrial Systems Group
Name :	Mr. N.K. Bansal
Designation :	Power Sector-Technical Services
Name :	Mr. Anil Ahuja
Designation :	Industrials Products Business (Elect. and Mech.) and Transportation Business
Name :	Dr. Sukul Lomash
Designation :	Officer on Special Duty-Corp. Office
Name :	Mr. S.C. Mittal
Designation :	Finance-Receivables Management and Contract Closing
Name :	Mr. K.C. Ramamurthy
Designation :	Electronics Division and Electronics Systems Division
Name :	Mr. S. Gopinath
Designation :	Piping Centre and Power Plant Piping Unit, Thirumayam
Name :	Mr. Rajiv Puri
Designation :	Project Engineering Management
Name :	Mr. A.K. Ghosh
Designation :	Power Sector-Southern Region
Name :	Mr. Arvind Gupta
Designation :	Project Engineering and Systems Division
Name :	Mr. V.K. Midha
Designation :	Renewables and Water Business
Name :	Mr. A.S. Nagaraja
Designation :	Ceramic Business
Name :	Mr. S.R. Prasad
Designation :	Heavy Electrical plant and Electrical Machines Repair Plant
Name :	Mr. Rakesh Mathur
Designation :	Power Sector-Marketing
Name :	Mr. N. Ravichander
Designation :	Heavy Power Equipment Plant
Name :	Mr. Anuj Bhatnagar
Designation :	Corporate Quality
Name :	Mr. Prakash Chand
Designation :	Heavy Electrical Equipment Plant and Pollution Control Research Institute
Name :	Mr. Akhil Joshi
Designation :	Technology Licensing and Joint Ventures / Mergers and Acquisitions
Name :	Mr. Arun Singhal
Designation :	Power Sector-Western Region
Name :	Dr. S. Sekar
Designation :	Corporate Research and Development
Name :	Mr. S.V.S. Narayana
Designation :	Central Foundry Forge Plant
Name :	Mr. Rajeev Srivastava
Designation :	Spares and Services Business / Heavy Equipment Repair Plant / Renovation and Modernisation
Name :	Mr. K.S. Shivaprasad
Designation :	Secretary, Management Committee

SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	1543452000	63.06
Sub Total	1543452000	63.06
(2) Foreign
Total Shareholding of Promoter and Promoter Group (A)	1543452000	63.06
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7347397	0.30
Financial Institutions / Banks	126388705	5.16
Insurance Companies	269455404	11.01
Foreign Institutional Investors	395053574	16.14
Qualified Foreign Investor	200	0.00
Sub Total	798245280	32.61
(2) Non-Institutions
Bodies Corporate	23591005	0.96
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	69394163	2.84
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1154975	0.05
Any Others (Specify)	11762577	0.48
Directors & their Relatives & Friends	3600	0.00
Trusts	1199678	0.05
Clearing Members	5219828	0.21
Non Resident Indians	5338381	0.22
Foreign Nationals	1090	0.00
Sub Total	105902720	4.33
Total Public shareholding (B)	904148000	36.94
Total (A)+(B)	2447600000	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)	2447600000	100.00

BUSINESS DETAILS

Line of Business :

Design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil and Gas and Defence.

Products :

Product Description	Item Code No.
Boilers other than parts	840210
Complete generating sets including hydro turbines	85023902
Gas Turbine of thrust exceeding 115000 KW	84118206

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· Allahabad bank

· Andhra bank

· Bank of Baroda

· Canara Bank

· Corporation bank

· Central bank

· Indian Bank

· Indian Overseas Bank

· Oriental bank of Commerce

· Punjab National Bank

· Punjab and Sindh Bank

· State Bank of India

· State Bank of Hyderabad

· Syndicate Bank

· State Bank of Travancore

· UCO Bank

· Union Bank of India

· United Bank of India

· Vijaya Bank

· IDBI

· CITI Bank N.A

· Deutsche Bank AG

· The Hongkong and Shanghai Banking Corporation Limited

· Standard Chartered Bank

· The Royal Bank of Scotland N.V.

· J P Morgan

· Axis Bank

· The Federal Bank Limited

· HDFC

· Kotak Mahindra Bank

· ICICI

· Indusind Bank

· Yes Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Loans from banks Packing credit (secured by first charge by way of hypothecation of raw materials, components, work-in-progress, finished goods, stores, Trade Receivables and other current assets both present and future)	12860.000	0.000
Total	12860.000	0.000

Banking Relations :	--
Auditors :	· S. N Dhawan and Company Chartered Accountants Delhi, India · Gandhi Minocha and Company Chartered Accountants Delhi, India · Vinay Kumar and Company Chartered Accountants Allahabad, Uttar Pradesh, India · Jawahar and Associates Chartered Accountants Hyderabad, Andhra Pradesh, India · V. Narayanan and Company Chartered Accountants Trichy, Tamilnadu, India · Patel Mohan Ramesh and Company Chartered Accountants Bangalore, Karnataka, India · S.L Chhajed and Company Chartered Accountants Bhopal, Madhya Pradesh, India
Cost Auditors :
Name :	· K.L Jaisingh and Company Cost Accountants Noida, Uttar Pradesh, India · Jugal K. Puri and Associates, Cost Accountants New Delhi, India · DZR and Company Cost Accountants Hyderabad, Andhra Pradesh, India · RKMS and Associates, Cost Accountants Chennai, Tamilnadu, India · Vishwanath Bhat and Company Cost Accountants Bangalore, Karnataka, India · Sunil Singh and Company Cost Accountants Lucknow, Uttar Pradesh, India
Subsidiary Company:	· Bharat Heavy Plates and Vessels Limited · BHEL Electrical Machines Limited
Joint Ventures :	· Powerplant Performance Improvement Limited · BHEL-GE Gas Turbine Services Private Limited · NTPC-BHEL Power Projects Private Limited · Udangudi Power Corporation Limited (Upto 26.03.2013) · Raichur Power Corporation Limited · Dada Dhuniwale Khandwa Power Limited · Latur Power Company Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000000	Equity Shares	Rs.2/- each	Rs.20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2447600000	Equity Shares	Rs.2/- each	Rs.4895.200 Millions

Out of which 1223800000 equity shares of Rs.2 each allotted as bonus shares

Reconciliation of the number of shares

Equity Shares	Number of Shares
Shares outstanding at the beginning of the year	2447600000
Shares issued during the year towards split of shares from Rs.10 to Rs.2 per share	--
Shares bought back during the year	--
Shares outstanding at the end of the year	2447600000

Details of shares held by shareholders holding more than 5% shares at the year end

Name of Shareholder	Number of Shares	% holding
President of India (POI) along with nominees	1657552000	67.72
Life Insurance Corporation of India	141433662	5.78
Face Value per share	-	2.00

Terms / rights attached to the equity shares:

The company has only one class of equity shares having a par value of Rs.2 per share (previous year Rs.10 per share). Each holder of the equity shares is entitled to one vote per share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4895.200	4895.200	4895.200
(b) Reserves & Surplus	299545.800	248836.900	196643.200
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	304441.000	253732.100	201538.400
(3) Non-Current Liabilities
(a) long-term borrowings	1292.000	1234.300	1021.400
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	57896.800	75585.900	91424.000
(d) long-term provisions	59329.100	50056.800	49232.300
Total Non-current Liabilities (3)	118517.900	126877.000	141677.700
(4) Current Liabilities
(a) Short term borrowings	12860.000	0.000	0.000
(b) Trade payables	96752.400	102548.200	80954.200
(c) Other current liabilities	138621.000	158246.000	141699.500
(d) Short-term provisions	30092.200	26356.900	26733.100
Total Current Liabilities (4)	278325.600	287151.100	249386.800
TOTAL	701284.500	667760.200	592602.900
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	43146.700	41607.200	32652.800
(ii) Intangible Assets	1438.200	1360.900	1356.400
(iii) Capital work-in-progress	11335.100	13246.300	17234.000
(iv) Intangible assets under development	380.800	229.800	103.600
(b) Non-current Investments	4291.700	4616.700	4391.700
(c) Deferred tax assets (net)	15506.900	15462.400	21635.500
(d) Long-term Loan and Advances	9053.300	9001.000	8829.100
(e) Other Non-current assets	106537.200	93836.200	73621.200
Total Non-Current Assets	191689.900	179360.500	159824.300
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	117638.200	135487.300	108520.500
(c) Trade receivables	292344.900	263569.300	201035.000
(d) Cash and cash equivalents	77320.500	66719.800	96301.500
(e) Short-term loans and advances	20291.200	21117.200	23825.300
(f) Other current assets	1999.800	1506.100	3096.300
Total Current Assets	509594.600	488399.700	432778.600
TOTAL	701284.500	667760.200	592602.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	476176.700	472278.600	415661.300
		Interest and Other Income	19286.900	20165.800	17011.000
		TOTAL	495463.600	492444.400	432672.300
Less	EXPENSES
		Consumption of Material Consumed	278993.700	289077.300	232090.700
		Employees remuneration and benefit	57527.800	54658.300	53967.100
		Other Expenses of Manufacture, Administration, Selling and Distribution	37765.600	32228.200	25361.100
		Provision Net	15657.700	14025.800	27151.200
		Cost of Jobs Done for Internal Use	(758.700)	(1041.100)	(685.100)
		Accretion/ Decretion to work in Progress and finished goods	1162.100	(8232.000)	(1273.500)
		Prior Period Items (Net)	4.400	192.500	17.900
		TOTAL	390352.600	380909.000	336629.400
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		105111.000	111535.400	96042.900
Less	INTEREST AND OTHER BORROWING COSTS		1252.700	512.800	547.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		103858.300	111022.600	95495.600
Less/ Add	DEPRECIATION/ AMORTISATION		9533.900	8000.000	5441.200
	PROFIT BEFORE TAX		94324.400	103022.600	90054.400
Less	TAX		28177.100	32623.000	29942.400
	PROFIT AFTER TAX		66147.300	70399.600	60112.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10312.300	8125.900	5753.900
Less	APPROPRIATIONS
		Transfer to General Reserve	50000.000	50000.000	40000.000
		Dividend	13230.000	15670.000	15250.000
		Tax on Dividend	2208.400	2540.000	2490.000
	BALANCE CARRIED TO THE B/S		11021.200	10315.500	8125.900
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	4386.800	10065.300	7692.100
		Interest	0.000	0.300	0.100
		Election and Other Services	1431.200	4770.100	4495.700
		FE in Deemed Export (incl. domestic contracts)	117747.900	129355.800	80072.100
	TOTAL EARNINGS		123565.900	144191.500	92260.000
	IMPORTS
		Raw Materials	30425.100	48842.700	42430.700
		Components & Spares Parts	32454.100	40493.300	28378.000
		Capital Goods	3198.600	4012.500	7009.400
	TOTAL IMPORTS		66077.800	93348.500	77818.100
	Earnings Per Share (Rs.)		27.03	28.76	122.80

QUARTERLY RESULTS

PARTICULARS	30.06.2013	30.09.2013	31.12.2013	31.03.2014
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	64581.200	8,9843.500	86348.500	150315.100
Total Expenditure	60695.400	8,5724.200	76489.100	122981.300
PBIDT (Excl OI)	3885.800	4119.300	9859.400	27333.800
Other Income	5384.800	4979.000	2907.800	2888.700
Operating Profit	9270.600	9098.300	12767.200	30222.500
Interest	277.600	246.600	322.800	479.300
Exceptional Items	0.000	0.000	0.000	(60.100)
PBDT	8993.000	8851.700	12444.400	29683.100
Depreciation	2308.000	2386.800	2416.100	2718.300
Profit Before Tax	6685.000	6464.900	10028.300	26964.800
Tax	2030.700	1905.400	3080.200	8518.900
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	4654.300	4559.500	6948.100	18445.900
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	4654.300	4559.500	6948.100	18445.900

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	13.35	14.30	13.89
Net Profit Margin (PBT/Sales)	(%)	19.81	21.81	21.67
Return on Total Assets (PBT/Total Assets}	(%)	14.08	16.24	16.40
Return on Investment (ROI) (PBT/Networth)		0.31	0.41	0.45
Debt Equity Ratio (Total Debt /Networth)		0.05	0.00	0.01
Current Ratio (Current Asset/Current Liability)		1.83	1.70	1.74

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	4895.200	4895.200	4895.200
Reserves & Surplus	196643.200	248836.900	299545.800
Net worth	201538.400	253732.100	304441.000
long-term borrowings	1021.400	1234.300	1292.000
Short term borrowings	0.000	0.000	12860.000
Total borrowings	1021.400	1234.300	14152.000
Debt/Equity ratio	0.005	0.005	0.046

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	415,661.300	472,278.600	476,176.700
		13.621	0.825

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	415,661.300	472,278.600	476,176.700
Profit	60,112.000	70,399.600	66,147.300
	14.46%	14.91%	13.89%

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

IN THE HIGH COURT OF DELHI AT NEW DELHI  

LPA 328/2014

BHARAT HEAVY ELECTRICALS LIMITED..... Appellant

Through: Mr. Sudhir Nandrajog, Sr. Advocate

with Mr. A.K. Roy, Mr. Pallav Kumar

and Mr. Dibya Nishant, Advocates

versus

M/S INDWELL CONSTRUCTIONS PRIVATE LIMITED and ORS..... Respondents

Through: Ms. Nikhita Khetrapal, Advocate for

Ms. Nidhi Raman, Advocate for R-2

and R-3

CORAM:

HON'BLE MR. JUSTICE P.K. BHASIN

HON'BLE MR. JUSTICE J.R. MIDHA

ORDER

25.04.2014

CM APPL. 7176/2014

Exemption as prayed for is granted subject to all just exceptions.

This

Application stands disposed of accordingly.

LPA 328/2014 and CM APPL. 7175/2014

Before we consider the preliminary submissions in the matter let the   writ Courts record be obtained for 5th May, 2014.

P.K. BHASIN, J

J.R. MIDHA, J

APRIL 25, 2014/pg

$

20

UNSECURED LOAN:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Long term maturities of finance lease obligations	1292.000	1234.300
Total	1292.000	1234.300

FINANCIAL HIGHLIGHTS

During 2012-13, BHEL recorded its highest-ever turnover of Rs.501560.000 Millions. Profit before tax is Rs.94320.000 Millions and Profit after tax is placed at Rs.66150.000 Millions.

Net worth of the company has gone up from Rs.253730.000 Millions to Rs.304440.000 Millions registering an increase of 19.9%. Net asset value (NAV) per share has been placed at Rs.124.38 in 2012-13 as against Rs.103.67 in 2011-12.

PERFORMANCE OF BUSINESS SEGMENTS

Power Sector

The Indian Power Sector is witnessing a slowdown since the past few years. Issues of coal linkages, environmental clearances, land acquisition and fund constraints have resulted in non-finalization of new projects, especially in the private sector and some of the ongoing projects are on a slow execution path.

· In the Power Sector business segment, despite these challenges and intense competitive pressure, BHEL has maintained its market leadership in the domestic market for utility sets:

Power Sector secured orders worth Rs.255600.000 Millions; 82% up from last year.

Secured orders for 8 nos. Turbine Generator (TG) package and 9 nos. Boilers for Supercritical sets during the year.

Continued Customer Confidence; Repeat order of TG package for 2x700 MWe RAPP 7 and 8.

Orders for 7 nos. of standalone ESP Packages for supercritical sets against stiff global competition.

Significant orders received in the Power sector include:

Thermal

Sub-Critical Orders:

· 1x500 MW NTPC, Vindhyachal Stg-V: Steam Generator (SG), Turbine Generator and ESP Package.

Super-Critical ratings:

· 2x660 MW NTPC / Mauda: ESP Packages

· 2x660 MW NTPC / Sholapur: ESP Package

· 2x660 MW DVC / Raghunathpur: TG Package

·

· 3x660 MW NPGCL/Nabinagar: SG,ESP Package

· 2x800 MW NTPC / Gadarwara: SG, TG Package

· 2x660 MW RRVUNL/Suratgarh: Erection Procurement and Commissioning (EPC) Package

· 2x660 MW OPGCL/IB Valley: Boiler Turbine Generator (BTG) Package

Hydro

· 3x57 MW NTPC/Lata Tapovan: Electrical and Mechanical (EandM) Package

Gas

· 160 MW RRVUNL/Ramgarh CCPP Stg IV: BTGpackage

Nuclear

· 2x700 MWe NPCIL/RAPP 7and8: TG, Control and Instrumentation (CandI) and Control Center Instrumentation package

· 2x700 MWe NPCIL / KAPP 3and4 : CCI package

PERFORMANCE OF BHEL UTILITY SETS

· BHEL supplied Thermal sets (Coal + Lignite) generated 4,83,431 MUs against 4,59,706 MUs of last year showing an increase of 5.16% and forming approx. 70.0% of the country’s total generation of 6,91,340 MUs from thermal utility sets.

· BHEL coal based sets registered PLF of 73.7% against National Average of 69.95%.

· During the financial year, generation from BHEL supplied thermal sets of ratings 195 MW and above – which form the backbone of the country’s thermal generating capacity, went up to 4,54,304 MUs with PLF of 77.3% and OA of 89.3%.

· 13 nos. stations equipped with BHEL equipments recorded a PLF of above 90%:

NR : Rihand Stage II (92.5), Singrauli (92.3),Unchahar (92.8)

ER : Budge Budge (93.5)

WR : Bhilai (96.8), Dahanu (100.2), Korba (NTPC)(90.1), Vindhyachal (91.3), Raigarh (90.2)

SR : Kakatiya (90.9), North Madras (91.9), Ramagundam (90.7), Tuticorin (90.4)

· 187 BHEL supplied coal based sets achieved PLF of over 70%. Out of these, 57 sets registered PLF of over 90% and 73 sets achieved PLF between 80% - 90%.

· BHEL coal sets registered the Operating Availability (O.A.) of 86.3%.

· BHEL supplied 500 MW sets achieved consistent availability of more than 90% for the last six years.

· 167 Thermal sets of BHEL make achieved O.A. higher than or equal to 90%.

· 182 BHEL supplied coal based sets clockeduninterrupted operation for more than 90 daysduring the year out of which:

· 59 sets ran twice continuously for more than 90 days.

· 27 sets continuously ran for more than 200 days.

· Trombay U 5 (500 MW) and Singrauli U 5 (200 MW) clocked uninterrupted operation throughout the year – a testimony of BHEL's product excellence.

Industry Sector

In Industry Sector, BHEL secured orders worth Rs. 45000.000 Millions in Captive Power, Rail Transportation, Power Transmission, Oil and Gas, Renewable Energies and other industrial segments.

Major orders received during the year / other business highlights – Industry segment-wise include:

Captive Power plants

Project Commissioning

· BHEL's first two-cylinder uprated 150MW (Reheat) rating turbine in the industrial Segment was commissioned for HINDALCO at Mahan.

· BHEL commissioned 703.3 MW in Captive Power/ Industrial Segment.

· For the first time in India, Gas Turbine was run with Refinery Fuel Gas for HMEL’s GGSR refinery. Customer’s appreciation has also been received for the same.

Renewable Business

· Order received for 2 Solar Photo Voltaic (SPV) Power plants for Unchahar and Talcher of 10 MW each from NTPC. This is the highest rated SPV Power Plant order received by BHEL so far.

· 5 MW grid connected SPV Plant for KPCL was commissioned at Mandya, Karnataka.

· SPV Plants commissioned at Andrott (320 kW) Kavaratti (760 kW) and Kadmat (270 kW) Islands of Lakshadweep. With this BHEL has commissioned a total of 1900 kW SPV Plants at various Islands of Lakshadweep. This is the largest Island electrification programme using Solar Photo Voltaic modules.

INTERNATIONAL BUSINESS

In International Business, the last few years have been afflicted with economic uncertainties and political turmoil which has severely constrained capital investments worldwide. Especially in their target markets new projects are not forthcoming and planned projects are also being put on hold or on slow execution path. In spite of such challenging trends, BHEL has been able to sustain its exports momentum with a physical export order inflow of Rs.20040.000 Millions from 20 countries in 2012-13 registering an eight fold growth over the previous year. The year marked significant steps towards globalization with successful forays in new markets and new product areas, apart from firmly establishing the company’s presence in existing markets.

MAJOR ACHIEVEMENTS DURING 2012-13

During the year BHEL secured following prestigious orders:

· Major Orders from Bhutan – Accelerating their success story in Bhutan, BHEL secured orders for Electro-mechanical package of 1020 MW Punatsangchhu-II Hydro Power Project and Electro-mechanical package of 720 MW Mangdechhu Hydro Power Project. With this order the total capacity contracted by BHEL in Bhutan has reached 4,356 MW (around 98% of Bhutan’s total capacity). Another key achievement was winning the order for Transformer Package for the Punatsangchhu-II Hydro Power Project against stiff international competition

· Entry into new markets – Consolidating its presence in East Africa, BHEL has successfully made its maiden entry into Burundi by securing order for 2x10 MW Kabu Hydro Project. Also BHEL for the first time secured an order for supply of OLTC from M/s Absolute Africa, South Africa.

· Repeat Orders-Following the successful execution of the previous orders of Wellheads, BHEL received repeat orders for Wellheads from Jindal Petroleum Operating Company, Georgia and Amran Establishment LLC, Oman. M/s IER, UAE placed an order for Rotor of Fr-6B Gas Turbine subsequent to successful delivery of 4 nos. Frame 6B Gas Turbines by BHEL. Also repeat order for Bus Extension Module was secured from Metso Automation, USA (for the third time from the same customer). Moreover, BHEL secured a repeat order for the supply of 1900 kW Slip Ring Induction motor from Mombasa Cement Limited, Kenya.

· Continued focus on After Sales Services led to orders for Spares and Services from Afghanistan, Bangladesh, Bhutan, Georgia, Indonesia, Iran, Jordan, Kenya, Libya, Malaysia, Malta, New Caledonia, Nigeria, Oman, Sri Lanka, UAE, United States and Yemen.

JOINT VENTURES

BHEL-GE GAS TURBINE SERVICES LIMITED (BGGTS)

The Joint Venture Company, BHEL-GE Gas Turbine Services Limited (BGGTS), has been promoted by BHEL with GE, USA for repair and servicing of GE designed Gas Turbines and has completed fifteen full financial years of operation.

BGGTS achieved a sales turnover of Rs. 8137.800 Millions during the year 2012-13 with a profit after tax of Rs. 817.000 Millions. Orders for Rs. 4892.000 Millions approx were booked by BGGTS during the year 2012- 13. BGGTS successfully completed gas turbine servicing and supply of spares to various customers in both Public and Private sectors. For the year 2012-13, BGGTS has declared a total dividend of 700 % thereby maintaining its consistent record of improved performance.

POWERPLANT PERFORMANCE IMPROVEMENT LIMITED (PPIL)

The Joint Venture Company, Powerplant Performance Improvement Limited (PPIL), has been promoted by BHEL with Siemens, Germany for plant performance improvement of old fossil fuelpower plants.

PPIL is in the process of settlement of outstanding issues and collection of withheld payments for pending contracts. Since sufficient business to ensure viability of the company has not been forthcoming, the promoter partners have mutually agreed to gradually wind up the company.

NTPC BHEL POWER PROJECTS PRIVATE LIMITED (NBPPL)

BHEL along with NTPC Limited has promoted a joint venture company “NTPC BHEL Power Projects Private Limited” for carrying out EPC contracts for Power Plants and other Infrastructure Projects in India and abroad. The JVC has acquired land in Mannavaram, AP and is in the process of implementing Phase-I of the investment for carrying out EPC and manufacture of Balance of Plant equipment for power plants. NBPPL has entered into a technical collaboration agreement with M/S DMW, USA for manufacture and supplyof Coal Handling Plants. The JVC is presently executing orders for Balance of Plant equipment assigned to it.

The paid up capital of the JVC is presently Rs. 500.000 Millions, with BHEL and NTPC each having subscribed Rs. 250.000 Millions. Further equity contribution of Rs. 250.000 Millions each has been made in May 2013 by the two promoters to enable JVC to meet its capital expenses requirement for implementing phase-I. For the financial year 2012-13, the JVC achieved a turnover of Rs. 1162.500 Millions and PAT of Rs. 5.660.000 Millions approx. (unaudited).

UDANGUDI POWER CORPORATION LIMITED (UPCL)

BHEL had promoted a joint venture company with Tamilnadu Electricity Board for setting up of a 2x800 MW Supercritical Thermal Power Plant at Udangudi, Tuticorin, Tamilnadu on build, own and operate basis. The JVC was incorporated on December 26, 2008 under the name of “Udangudi Power Corporation Ltd”. The paid up equity capital of JVC was Rs. 650.000 Millions, with BHEL and TNEB each having subscribed Rs. 325.000 Millions. The JVC has been awaiting grant of coal linkage and MOEF clearance before proceeding with finalizing main plant equipment order on BHEL. In March 2012, Govt. of Tamil Nadu indicated that they would like to pursue this project as a state project rather than as a JV project and requested BHEL to agree for termination of JVA on mutual consent basis. After exploring all possible options, BHEL has agreed for sale of BHEL’s equity in UPCL to TANGEDCO for a total consideration of Rs. 640.000 Millions. Pursuant to receipt of sale consideration and transfer of BHEL’s share in UPCL to TANGEDCO, BHEL nominee directors have resigned from the Board of UPCL with effect from March 26, 2013 and the JVA stands terminated.

RAICHUR POWER CORPORATION LIMITED (RPCL)

BHEL has promoted a joint venture company with Karnataka Power Corporation Limited (KPCL) for setting up of a 2x800 MW Supercritical Thermal Power Plant at Yeramarus, Raichur, Karnataka and 1x800 MW Supercritical Thermal Power Plant at Edlapur, Raichur, Karnataka on build, own and operate basis. The Joint Venture Agreement with KPCL was signed on January 12, 2009 and the JVC was incorporated on April 15, 2009 under the name of “Raichur Power Corporation Limited”. The initial authorized and paid up equity of the JVC was Rs. 100.000 Millions subscribed to equally by KPCL and BHEL. Pursuant to financial closure in November 2011 and induction of IFCI as the third equity partner, a change in equity structure has been agreed and final equity holding would be KPCL 50%, BHEL 26% and IFCI 24%. At the end of 2012-13, the total paid up equity capital of JVC is approx. Rs. 7759.000 Millions, with BHEL contributing Rs. 3315.00 Millions, KPCL contributing Rs. 3444.000 Millions and IFCI contributing Rs. 1000.000 Millions. JVC has also tied up the required debt with PFC and a consortium of commercial banks.

The JVC has received MOEF clearance for the 2x800 MW Yeramarus Power Project and the order for supply and EandC of main plant equipment for the 2x800 MW Yermarus project has been placed on BHEL for a value of approx. Rs. 63000.000 Millions. The work of Coal Handling System and Ash Handling System for YTPS has also been awarded to BHEL at a negotiated contract value of Rs. 9660.000 Millions (inclusive of taxes). The LOA for 1x800MW Edlapur project valuing Rs. 31000.000 Millions has also been settled and Notice to Proceed would be issued after MOEF clearance.

DADA DHUNIWALE KHANDWA POWER LIMITED (DDKPL)

BHEL has promoted a joint venture company with Madhya Pradesh Power Generating Company Limited (MPPGCL) for setting up of a 2x800 MW Supercritical Thermal Power Plant at Khandwa, Madhya Pradesh on build, own and operate basis. The Joint Venture Agreement with MPPGCL was signed on January 28, 2010 and the JVC was incorporated on February 25, 2010 under the name of “Dada Dhuniwale Khandwa Power Limited”. The initial authorized and paid up equity of the JVC was Rs. 50.000 Millions subscribed to equally by MPPGCL and BHEL. At present the paid up equity capital is Rs. 450.000 Millions, with BHEL and MPPGCL each having subscribed to Rs. 225.000 Millions, to enable JVC to meet land acquisition expenses. The acquisition of land is in progress with section 9 notification issued for land for approach road and water pipeline corridor and section 6 notification for land for main plant. Application for grant of coal linkage was filed with Ministry of Coal on January 27th, 2010 and all the requirements under ToR as specified by Ministry of Environment and Forests (MOEF) including EIA study and public hearing has been completed. The JVC has been awaiting grant of coal linkage and MOEF clearance before proceeding with finalizing main plant equipment order on BHEL. The JVC has in Jan’ 13 applied for allotment of coal blocks under the new policy for coal block allotment to Govt. companies announced by Govt. of India. A change in equity structure has been approved by the Board, with BHEL holding 26%, MPPGCL 10%, PSUs/PSU-FIs/PSU bank 16% and balance 48% by a strategic partner.

LATUR POWER COMPANY LIMITED (LPCL)

BHEL has promoted a Joint venture company with Maharashtra State Power Generation Company Limited (MAHAGENCO) for setting up a 2x660 MW Thermal power plant or 1500 MW gas based Combined Cycle Power Plant (CCPP) in Latur, Maharashtra. The Joint Venture Agreement with MAHAGENCO was signed on November 11, 2010 and the JVC was incorporated on April 6, 2011 under the name of “Latur Power Company Limited”. The present paid up equity of the JVC is Rs. 50.000 Millions, subscribed to equally by both the partners.

The JVC has reviewed the viability of various fuel options to set up a coal based or gas based project. Due to non-availability of coal linkage and domestic gas also not being available till 2015, the JV partners are considering the option of setting up a Solar PV plant.

MERGERS AND ACQUISITIONS

BHEL, in its strategic endeavor to diversify the market and product portfolio, is actively pursuing acquisition opportunities in Europe and USA in the areas of core technologies in energy sector including renewables and other potential areas like transportation and transmission to achieve its objectives like access to technology, access to global markets, securing global supply sources, diversifying into related and new business areas etc. to facilitate in achieving top line and bottom line growth targets as envisaged in Strategic Plan 2017.

In this pursuit, BHEL is consistently evaluating its technology profile, product mix and exploring new potential markets for suitable target opportunities in close co-ordination with its empanelled MandA Advisors.

To realize the full benefits to BHEL from Bharat Heavy Plate and Vessels (BHPV), a wholly owned subsidiary, a proposal for merger of BHPV with BHEL under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985(“SICA”) was approved by BHEL Board on May 23, 2012. Consequently, with the approval of merger proposal by Union Cabinet on February 21, 2013, a Modified Draft Rehabilitation Scheme (MDRS) under the provisions of SICA has been filed with Hon’ble BIFR.

The Extraordinary General Meetings of BHPV and BHEL shareholders were held on June 20, 2013 and June 27, 2013 respectively wherein proposal for merger of BHPV with BHEL was passed by a special resolution.

It is envisaged that with the merger of BHPV with BHEL, the consolidated entity shall provide strategic and competitive advantage by integrating and rationalizing capacities for the production of industrial boilers and process plant equipment.

POSITIONING FOR THE FUTURE

· Power sector will continue to remain major contributor in their top line with transportation and transmission emerging as next big business verticals. Strategies are in place to strengthen their presence in Nuclear, Renewable and Water segments.

· Company has adopted its Strategic Plan 2012-17. The plan attempts to steer the company towards becoming a global engineering enterprise. Key drivers of their success are-expanding their offerings in Power Sector by building EPC capability, focus on industry businesses, expansion of spares and services and adoption of collaborative approach.

· The company is continuously sharpening its focus on ‘6-Point’ priority areas for action viz. Capability Enhancement, Accelerated Project Execution, Product Cost Competitiveness and Quality, Diversification, Engineering and Technology and People Development aligned with its Strategic Plan initiatives to sustain its leadership position in its areas of operations.

· Efforts are being made to make supply chain agile and accelerate project execution, sustained focus on Vendor Base Expansion, Scaling up procurement through technology initiatives, Advanced Manufacturing Action, Global Sourcing etc.

· Developing lower rating sets with supercritical parameters providing alternatives to the Utilities to take advantage of this eco-friendly technology even in lower rating sets.

· In order to meet burgeoining demand for energy, IEP has identified Nuclear Energy based power generation as a viable option. Increased scope by offering products beyond conventional island in Nuclear business is under way.

· BHEL’s collaborative initiatives to address the growing demand potential in Railway Transportation including Metro and Suburban Railways include initiative with Indian Railways for setting up a greenfield Mainline Electrical Multiple Unit (MEMU) Coach factory in Rajasthan.

· Considering the National Action Plan on Climate Change targeting 15% of electricity generation from renewables by 2020, BHEL is looking towards expanding its capacity to manufacture photo voltaic modules and cells.

· As a part of structure driven strategic initiatives to expand offerings in Renovation and Modernisation of Power Plants, RandM systems group (RMSG) has been constituted.

· In a bid to address the aspirations of the company to become a preeminent supplier of Industrial Boiler, Nuclear Steam Generator and supplier of equipment for process Industries, merger of BHPV, as a 100% subsidiary of BHEL, is under way. In a bid to make headway in new product areas like Alternators for Traction Applications etc., facilities of BHEL-EML, a Joint venture of BHEL and Kerala Govt., are being leveraged.

· ‘Engineering and Technology’ is their strength. To uphold their reputation for excellence in their core capability, they will continue to upgrade existing products to contemporary levels and develop new products through continuous in-house efforts as well as through acquisition of new technologies

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. in million)	31.03.2012 (Rs. in million)
A Claims against the company not acknowledged as debt : i) a Income Tax Pending Appeals s b Against which paid under protest included under the head “deposit others”	340.500 0.000	452.000 0.000
ii) a Sales Tax Demand b Against which paid under protest included under the head “Advances Recoverable”	8764.700 1218.500	7327.000 983.900
iii) a Excise Duty demands b Against which paid under protest included under the head “Advances Recoverable”	3335.600 85.200	3200.800 784.000
iv) a Custom Duty demands b Against which paid under protest included under the head “Advances Recoverable”	2.100 0.600	2.100 0.600
v) Court and Arbitration cases	7263.800	5592.300
vi) a Liquidated Damages b Amount deducted by customers towards LD included in vi)a	33766.700 20049.800	22836.300 15791.900
vii) Counter Claim by contractors	6.100	6.100
viii) a Service Tax Demand b Against which paid under protest	1654.100	1317.500 0.000
ix) Others	565.400	1063.400
x) Corporate Guarantee given on behalf of subsidiary company (BHPV)	65.600	95.700
(In view of the various court cases and litigations and claims disputed by the company financial impact as to outflow of resources is not ascertainable at this stage).

FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31^ST MARCH 2014

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)		Year Ended ( Unaudited)
	31.03.2014	31.12.2013	31.03.2014
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	154316.000	89195.000	403379.000
Less: Excise Duty / Service Tax	6767.000	4571.000	19491.000
Total income from Operations(net)	147549.000	84624.000	383888.000
Other Operating Income	2766.000	1725.000	7200.000
2.Expenditure
a) Cost of material consumed	74806.000	49396.000	214614.000
b) Changes in inventories of finished goods, work-in-progress and stock-in-trade	1122.000	(594.000)	10574.000
c) Employees benefit expenses	13204.000	15256.000	59338.000
d) Depreciation and amortization expenses	2719.000	2416.000	9829.000
e) Other expenditure	23049.000	12432.000	61364.000
Total expenses	125700.000	78906.000	355719.000
3. Profit from operations before other income and financial costs	24615.000	7443.000	35369.000
4. Other income	2889.000	2908.000	16160.000
5. Profit from ordinary activities before finance costs	24504.000	10351.000	51529.000
6. Finance costs	479.000	323.000	1326.000
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	27025.000	10028.000	50203.000
8. Exceptional item / Prior periods items)	(60.000)	0.000	(60.000)
9. Profit from ordinary activities before tax Expense:	26965.000	10028.000	50143.000
10.Tax expenses
Tax expense (incl. deferred tax)	8832.000	3080.000	15848.000
Tax (earlier years)	(313.000)	0.000	(313.000)
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	18446.000	6948.000	34608.000
12.Extraordinary Items (net of tax expense)	0.000	0.000	0.000
13.Net Profit / (Loss) for the period (11 -12)	18446.000	6948.000	34608.000
14.Paid-up equity share capital (Nominal value Rs.10/- each)	4895.000	4895.000	4895.000
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year
16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):	7.54	2.84	14.14

Particulars	Quarter Ended ( Unaudited)		Year Ended ( Unaudited)
	31.03.2014	31.12.2013	31.03.2014
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	904148000	904148000	904148000
- Percentage of shareholding	36.94%	36.94%	36.94%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-	-	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	-	-	-
Percentage of shares (as a % of total share capital of the company)	-	-	-
b) Non Encumbered
Number of shares	1543452000	1543452000	1543452000
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%
Percentage of shares (as a % of total share capital of the company)	63.06%	63.06%	63.06%
B. Investor Complaints
Pending at the beginning of the quarter	Nil
Receiving during the quarter	275
Disposed of during the quarter	275
Remaining unreserved at the end of the quarter	Nil

UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)		Year Ended ( Unaudited)
	31.03.2014	31.12.2013	31.03.2014
1. Segment Revenue
Power	122108.000	73196.000	324854.000
Industry	32208.000	15999.000	78525.000
Total	154316.000	89195.000	403379.000
Inter segmental revenue
Sales / Income from operations	154316.000	89195.000	403379.000
Segment Results (Profit before Tax & Interest)
Power	23354.000	12084.000	54010.000
Industry	6268.000	2318.000	9855.000
Total	29622.000	14402.000	63826.000
Less: Interest	479.000	323.000	1326.000
Other unallocable expenditure net of income	2178.000	4051.000	12396.000
Total Profit before Tax	26965.000	10028.000	50143.000
Capital Employed
(Segment Assets - Segment Liabilities)
Power			161746.000
Industry			52931.000
Capital Employed (including unallocable common)			331386.000

STANDALONE STATEMENT OF ASSTES AND LIABILITIES AS ON 31.03.2013

Rs. In Millions

SOURCES OF FUNDS	31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4,895.000
(b) Reserves & Surplus	325,575.000
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	330,470.000
(3) Non-Current Liabilities
(a) long-term borrowings	1,048.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	66,002.000
(d) long-term provisions	74,964.000
Total Non-current Liabilities (3)	142,014.000
(4) Current Liabilities
(a) Short term borrowings	25,500.000
(b) Trade payables	87,190.000
(c) Other current liabilities	114,442.000
(d) Short-term provisions	28,296.000
Total Current Liabilities (4)	255,428.000
TOTAL	727,912.000
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(b) Non-current Investments	4,202.000
(c) Deferred tax assets (net)	19,689.000
(d) Long-term Loan and Advances	11,671.000
(e) Other Non-current assets	118,811.000
Total Non-Current Assets	207,724.000
(2) Current assets
(a) Current investments	0.000
(b) Inventories	97,976.000
(c) Trade receivables	280,719.000
(d) Cash and cash equivalents	118,729.000
(e) Short-term loans and advances	20,239.000
(f) Other current assets	2,525.000
Total Current Assets	520,188.000
TOTAL	727,912.000

# Subject to audit u/s 619(4) of the Companies Act, 1956 by the C&AG of India

The figures have been regrouped, wherever necessary.

1. The consolidated financial statements have been prepared in accordance with Accounting Standard-21 on "Consolidated Financial Statements" and Accounting Standard-27 on "Financial Reporting of interest in Joint Ventures".

2. The above results have been reviewed by the Audit Committee comprising of one Independent director as its chairperson and two Government directors (instead of two independent directors as required under listing agreement), based on the present strength of the Board and were taken on record by the Board of Directors in their meeting held on 29-05-2014.

3. The Board for Industrial and Financial Reconstruction (BIFR) vide its order dated August 29, 2013 sanctioned the Modified Draft Rehabilitation Scheme (MDRS) for envisaging merger of M/s Bharat Heavy Plates and Vessels Limited with the Company under Section 18(5) of Sick Industrial Companies (Special Provisions) Act, 1985 (“SICA”) with effect from the appointed date i.e. October 1, 2011. The Company has made necessary filings with the respective Registrar of Companies on August 30, 2013 (effective date). In terms of the AS 14 – “Accounting for Amalgamations”, the scheme of amalgamation has been accounted for under the "Pooling of Interests method".

Consequent to merger of M/s Bharat Heavy Plates & Vessels Limited (BHPV) with the company w.e.f 30-08-2013, the financial results of HPVP unit (erstwhile M/s BHPV) have been included in the above results. The impact on following parameters is as under:

Particulars	Quarter Ended ( Unaudited)		Year Ended ( Unaudited)
	31.03.2014	31.12.2013	31.03.2014
Sales/Income from Operations	498.000	386.000	1050.000
Profit from ordinary activities before tax	212.000	(164.000)	(1866.000)

4. In view of this, figures for the current reporting period are not comparable with the figures in corresponding period of previous year

5. The Board of Directors have recommended a final dividend of Rs.1.52 per share (Face Value Rs.2 per share) in addition to the interim dividend of Rs.1.31 per share (Face Value Rs.2 per share) paid during the year. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90129433	06/04/1994	17,800,000.00	INDUSTRIAL RECONSTRUCTION BANK OF INDIA	19; Netaji Subhas Road, Calcutta, West Bengal - 700001, India	-
2	90041091	14/03/2014 *	50,000,000,000.00	STATE BANK OF INDIA	Cag Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, Delhi - 110001, India	C00817239
3	80025169	14/03/2014 *	500,000,000,000.00	STATE BANK OF INDIA	Cag Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, Delhi - 110001, India	C00907972
4	90059992	05/02/1991	33,850,000.00	EXPORT - IMPORT BANK OF INDIA	Post Bag No. 19969; Maker Chambers Iv, 222; Nariman Point, Bombay, Maharashtra - 400021, India	-
5	90059987	18/01/1991	113,300,000.00	EXPORT - IMPORT BANK OF INDIA	Post Bag No. 19969; Maker Chambers Iv, 222; Nariman Point, Bombay, Maharashtra - 400021, India	-
6	90059907	22/05/1990	34,600,000.00	EXPORT - IMPORT BANK OF INDIA	Post Bag No. 19969; Maker Chambers Iv, 222; Nariman Point, Bombay, Maharashtra - 400021, India	-

FIXED ASSETS

· Freehold land (incl. development exp.)

· Leasehold land (incl. development exp.)

Roads, bridges and culverts

Buildings

Leashold buildings

Drainage, sewerage and water supply

Railway siding

Locomotives and wagons

Plant and Machinery

Electronic data processing equipments

Electrical installations

Construction Equipment

Vehicles

Furniture and fixtures

Office and other equipments

Software

AS PER WEBSITE DETAILS:

PRESS RELEASES

GOVERNMENT AIMS TO GARNER RS 180000.000 MILLIONS FROM PSU DISINVESTMENT

Dec 9, 2013

NEW DELHI: The government will garner about Rs.180000.000 Millions from seven approved disinvestment in public sector units and an Exchange Traded Fund (ETF).

The government expects to raise Rs.5000.000 Millions from Engineers India, Rs.50000.000 Millions from Indian Oil, Rs.30000.000 Millions from Hindustan Aeronautics, Rs.10000.000 Millions from RINL and Rs.20000.000 Millions from NHPC.

Besides, a 5 per cent stake sale in BHEL is expected to fetch Rs.20000.000 Millions and 4 per cent in Power Gridwould garner Rs.15000.000 Millions to exchequer, Minister of State J D Seelam said in a written reply in the Lok Sabha.

The Cabinet Committee on Economic Affairs (CCEA) has cleared the proposals of disinvestment all the seven companies, Seelam added.

Besides, the CCEA has also created setting up of a CPSE ETF with a corpus of Rs.30000.000 Millions.

In the current fiscal the government plans to raise Rs.400000.000 Millions by way of disinvestment. So far in current fiscal it has realised only Rs.13250.000 Millions through stake sale in six companies.

MR. ATUL SOBTI APPOINTED DIRECTOR (POWER), BHEL

2-Dec-2013

New Delhi, December 2: On his appointment as Director on the Board of Bharat Heavy Electricals Limited (BHEL), Mr. Atul Sobti, 54, has assumed charge as Director (Power) of the Maharatna Public Sector engineering and manufacturing enterprise. 

Prior to this, he was Executive Director (Power) at BHEL, New Delhi and was also holding concurrent charge of Industrial Systems Group (ISG), a Bangalore based unit of BHEL. 

Mr. Sobti is a ‘Mechanical Graduate Engineer’ with ‘Post Graduation in International Management’ and ‘Diploma in Project Management’. He was awarded the Gold Medal at IMI, while pursuing ‘Post Graduation in International Management’. He has also undergone Advance Management Training Programmes at IIM, Ahmedabad and Asian Institute of Management, Manila.

Mr. Sobti has a repertoire of diverse and versatile professional experience of 33 years, working in various capacities in all major segments of BHEL including International Operations; a major manufacturing plant of BHEL at Hyderabad; Corporate Planning & Development; New Capital Projects and Project Engineering and Systems Integration Divisions at BHEL Hyderabad and Bangalore. The experience encompasses a wide spectrum of strategic as well as operational disciplines including Marketing & Business Development, Project Management, Operations Management, Strategic Management, Capital Investments, and Project Engineering & Systems Development. 

During his tenure at BHEL’s International Operations Division, Mr. Sobti was a key contributor to a fifteen fold increase in its overseas business through securing and executing prestigious power projects and product orders from many countries including Oman, UAE, Iraq, Libya, China, Kazakhstan, Suriname, Bhutan, Sri Lanka, Egypt, Kuwait, Ukraine, etc.

During his tenures at BHEL’s units at Bangalore and Hyderabad, the units achieved record financial and physical performance. He was also instrumental in steering the future growth plans and new business initiatives in these divisions.

As a member of New Capital Projects Group, in the eighties, Mr. Atul Sobti was actively associated in setting up of new BHEL plants at Rudrapur, Varanasi, PCRI-Haridwar, Jagdishpur, Goindwal etc. During his tenure in Corporate P&D, he worked in various areas including Strategic Planning, Capital Investments, MoU, Operations Monitoring, Technology Licensing etc. He was involved in drawing Corporate Plans of BHEL as well as creating Vision, Mission and Values for the company. 

Mr. Sobti has been an active member of ‘CII National Committee of young Managers’, National level ‘CII Trade committee’ and Bangalore Chamber of Industry and Commerce (BCIC). He is also a regular faculty member at a number of reputed Management Institutes as well as sBHEL’s Human Resource Development Institute.

BHEL WINS RS.25690.000 MILLION STEAM GENERATOR PACKAGE CONTRACT FOR 2X500 MW LIGNITE-FIRED POWER PROJECT

1 November 2013

In the face of stiff International Competitive Bidding (ICB), Bharat Heavy Electricals Limited (BHEL) has bagged a prestigious contract for supply of Steam Generator Package for two thermal units of 500 MW each.

Valued at Rs.25,690 Million, the order has been placed on BHEL by Neyveli Lignite Corporation Limited (NLC), for the upcoming 1,000 MW Thermal Power Project (TPP) in Neyveli.

Significantly, these Steam Generators will be the highest rating Pulverised Lignite fired Steam-Generators in the country.

BHEL has earlier secured orders from NLC for their 2x500 MW Tuticorin, 2x250 MW Neyveli and 2x125 MW Barsingsar projects, all on ICB basis. With this order, the customer has reposed confidence in the company’s technological excellence as also its capability in executing power projects of this magnitude.

The order reinforces BHEL's leadership status in the execution of thermal power projects involving supply of state-of-art equipment, suited to Indian coal and Indian conditions.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower. Significantly, the company has established the capability to deliver power plant equipment of 20,000 MW per annum.

CMD, BHEL HONOURED WITH LAKSHYA BUSINESS VISIONARY AWARD 2013

23-Oct-2013

Mr. B. Prasada Rao, CMD, BHEL was honoured with the prestigious NITIE ‘Lakshya Business Visionary Award’ 2013. The award was presented to Mr. Rao by Mr. Gautam Thapar, Chairman, Avantha Group and Chairman, Board of Governors, National Institute of Industrial Engineering (NITIE).

Lakshya, the flagship event of NITIE is the Annual confluence of business legends across the country. In Lakshya, the fraternities of NITIE felicitate business leaders with the ‘Lakshya Business Visionary Award’.

These awards are given in recognition and appreciation of achievements, to those industry leaders, who have emerged winners due to their exemplary vision and extraordinary leadership.

NITIE is one of the leading B Schools in India. It is one of the 15 centers of Excellence identified by MHRD. NITIE has been serving the nation for the last 50 years by producing world-class managers who have driven industrial growth across sectors around the globe.

Mr. B.P. Rao, CMD, BHEL receiving the NITIE Lakshya Business Visionary Award 2013 from Mr. Gautam Thapar, Chairman, Avantha Group

BHARAT HEAVY ELECTRICALS LIMITED : BHEL PAYS 164.5% FINAL DIVIDEND FOR FISCAL 2012-13

10-Oct-2013

BHEL pays 164.5% Final Dividend for fiscal 2012-13

BHEL has paid a final dividend of 164.5% on the enhanced equity capital post-bonus, for fiscal 2012-13. In value terms, the total dividend paid amounts to Rs.13,230 Million (including an interim dividend of 106% paid earlier).

With this, the company has maintained its impeccable track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break.

A cheque of Rs.5453.3 Million towards the final dividend for the year 2012-13 on the equity (67.72%) held by the Government of India, was presented here today to Mr. Praful Patel, Hon'ble Union Minister for Heavy Industries and Public Enterprises by Mr. B.P. Rao, Chairman and Managing Director, BHEL, in the presence of Dr. Sutanu Behuria, Secretary, Department of Heavy Industry.

Directors on the board of BHEL as well as other senior officials of the Ministry of Heavy Industries & Public Enterprises and BHEL were also present on this occasion.

During fiscal 2012-13, BHEL recorded an all time high turnover of Rs.501560 Million and a Net Profit of Rs.66150 Million. On the back of strong focus on manufacturing efficiencies, BHEL was able to maintain the level of previous five years (2007-12) average profit margins of 14% which is one of the highest among peer group companies. In recognition of the consistent high performance over a longer period of time, the company has been bestowed with the coveted 'Maharatna' status by Govt. of India, resulting in further empowerment of the Board for greater business agility.

CMD, BHEL presenting the Final Dividend cheque for 2012-13 to Honble Union Minister for HI and PE.

BHEL WINS RS 2650 MILLION CONTRACT FROM BPCL FOR KOCHI REFINERY PROJECT

Aug 7, 2013

In the face of stiff competition under International Competitive Bidding (ICB), Bharat Heavy Electricals Limited (BHEL) has won a contract for supplying the Gas Turbine Generator package for an energy efficient and environment-friendly co-generation captive power plant at Kochi Refinery in Kerala.

Valued at around Rs.2650 Million, the order has been placed on BHEL by Bharat Petroleum Corporation Limited (BPCL) for its Integrated Refinery Project (IREP) at Kochi Refinery. The order envisages supply and supervision of 3 nos. Gas Turbines of 34.5 MW rating each, with associated auxiliaries and control systems.

The gas turbine will be operated in the cogeneration mode for meeting the power and process steam requirement of the upcoming Kochi refinery expansion project. The customer has opted to source the captive power plant from BHEL in view of its techno-economic superiority - a testimony to the customer's confidence in BHEL's capability.

The equiment for the project will be supplied by BHEL's Hyderabad plant and Electronics Division, Bangalore. Erection and commissioning of the Gas Turbine package will be carried out by the company's Power Sector - Southern Region.

BHEL has emerged as the market leader in co-generation and captive power plants, offering units from 10 MW onwards for both steam turbine-based and gas-based combined cycle power projects for complete power and process steam requirements of various industries. BHEL offers integrated solutions for captive thermal power plants - be it coal/ oil/ gas fired, combined cycle or open cycle, including co-generation plants, covering the entire range required by industries. The company offers most optimum configurations to suit customer's specific requirements.

BHPV MERGED WITH BHEL; BECOMES SEVENTEENTH UNIT OF BHEL

6-Sep-2013

With the Board for Industrial and Financial Reconstruction's (BIFR) sanction of the Modified Draft Rehabilitation Scheme envisaging merger of Bharat Heavy Plate and Vessels Limited (BHPV) with the Maharatna company Bharat Heavy Electricals Limited (BHEL), BHPV has become the 17th manufacturing unit of BHEL.

The unit will hereafter be named as Heavy Plates and Vessels Plant (HPVP), Vishakhapatnam. The Appointed date for the merger is 1st October 2011. Till now, BHPV was a wholly owned subsidiary of BHEL. After the Union cabinet's approval in February 2013, the merger scheme was filed with BIFR in March 2013 and the entire merger exercise was completed in a record time of 5 months thereafter.

The merger will pave the way for BHEL in further diversifying its product portfolio. HPVP derives strength from numerous esteemed references in the Oil, Steel, Cement and Fertilizer sectors. Compact Heat Exchangers for the Light Combat Aircraft 'Tejas' meeting all technical requirements mandated by the relevant Military Standards of Govt. of India will continue to be manufactured at HPVP.

Based on past experience and capabilities for manufacture of its legacy products like High Pressure Heat Exchangers, Pressure Vessels, Columns, Reactors, Air Separation Units, Nitrogen Plants etc., BHEL will be able to address forthcoming business from various process industries.

This will also facilitate BHEL's entry into the Oil and Gas Sectors for products like Group Gathering Stations, Gas Processing Units etc., as BHEL's presence in process industries like Refineries, Petrochem, and Fertilizers has earlier been limited to supply of individual products like boilers, turbines, motors etc. After merger, BHEL will be in a position to bid for entire systems / sub-systems and progress to qualify for EPC contracts in these sectors and BHEL expects an additional business of over Rs.54,000 Million in the next 5 years.

In addition, HPVP shall be developed as a hub for industrial boilers. There is a business potential of Rs.90,000 Million in the next 5 years for industrial boilers upto 500 TPH and BHEL would strive for major share of this business through HPVP. HPVP would become BHEL's first strategically located coast-based plant which has a sea front facility for fabrication and transportation of heavy equipment through barge and shall be used by BHEL in transportation of heavy over dimensional consignments (ODC) for domestic and international orders.

Furthermore, HPVP has already made an ODC of 442 tons for an export order of 2x135 MW Koniambo Project in New Caledonia and shipped from the sea side facility, bringing competitive advantage to BHEL.

BHPV was established in the year 1966 as a public sector undertaking under the Department of Heavy Industry, Government of India. It catered to the specialized equipment and plants required for oil refineries, fertilizer plants, steel plants, defence sector etc., and has contributed more than Rs.6,500 Million to the National exchequer in the last 20 years.

BHPV achieved a turnover of Rs.2402.700 Million in Financial Year 2012-13 and has crossed the Rs.2000.000 Million turnover mark, after a period of 10 years. The net profit during the same period was Rs.350.400 Million.

The merger will pave the way for a new phase of growth at HPVP. In BHEL's fold, the Vizag plant will regain its past glory by modernizing its strategically located manufacturing base to deliver world class equipment and systems by inculcating the strong performance driven culture of BHEL. In this regard, capital expansion is already underway at HPVP with an investment of Rs.2300.000 Million to provide the technological edge.

BHEL WINS ICAI NATIONAL AWARD FOR EXCELLENCE IN COST MANAGEMENT FOR THE EIGHTH CONSECUTIVE YEAR

23-Aug-2013

New Delhi, August 23: Among public and private sector companies, Maharatna engineering and manufacturing enterprise, Bharat Heavy Electricals Limited (BHEL) has been conferred the ‘ICAI National Award for Excellence in Cost Management 2012’.

BHEL has been awarded the recognition for the eighth successive year, having earlier won the awards uninterruptedly from 2005 onwards. An independent jury headed by the former Chief Justice of India, Mr. V.N. Khare unanimously selected BHEL for the First Award in the PSU Manufacturing Organisation Large category, for the Award for 2012.

Instituted in the year 2003, by the Institute of Cost Accountants of India (ICAI), the awards are presented annually to corporate entities in their journey towards excellence in cost management and cost management practices. The awards were presented by Mr. Sachin Pilot, Hon’ble Union Minister of State for Corporate Affairs (Independent Charge) to Mr. B. Prasada Rao, Chairman and Managing Director, BHEL, at a function in New Delhi.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower. Significantly, the company has established the capability to deliver power plant equipment of 20,000 MW per annum.

BHEL EMPLOYEES CONTRIBUTE ONE-DAY SALARY FOR FLOOD RELIEF

7-Aug-2013

BHEL employees reach out to flood victims in Uttarakhand: Contribute one-day’s salary

Reaching out to the victims in the flood-ravaged areas of Uttarakhand, employees of Bharat Heavy Electricals Limited (BHEL) have made a humble contribution of one-day’s salary to help alleviate their suffering.

To this effect, on behalf of BHEL’s employees, a cheque of Rs.63.8 Million was handed over to Mr. Praful Patel, Hon’ble Union Minister for Heavy Industries and Public Enterprises by Mr. B.P. Rao, Chairman and Managing Director, BHEL, in the presence of Dr. S. Behuria, Secretary, Department of Heavy Industry.

Directors on the board of BHEL as well as other senior officials of the Ministry of Heavy Industries and Public Enterprises and BHEL were also present on this occasion. BHEL has also contributed an amount of Rs.20 Million for the cause to the Chief Minster’s Relief Fund of Uttarakahand.

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.59.03
UK Pound	1	Rs.98.91
Euro	1	Rs.80.34

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	YES
TOTAL		72

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.