1. Summary Information

		Country	INDIA
Company Name	CMC LIMITED	Principal Name 1	MR. S. RAMADORAI
Status	GOOD	Principal Name 2	MR. R. RAMANAN
		Registration #	01-001970
Street Address	CMC CENTRE, OLD MUMBAI HIGHWAY, GACHIBOWLI, HYDERABAD – 500 032, ANDHRA PRADESH
Established Date	26.12.1975	SIC Code	--
Telephone#	91-40-66578000 (10 Lines)	Business Style 1	SERVICE PROVIDER
Fax #	91-40-23000509	Business Style 2	--
Homepage	http://www.cmcltd.com	Product Name 1	--
# of employees	10663 (APPROXIMATELY)	Product Name 2	--
Paid up capital	RS.303,000,000/-	Product Name 3	--
Shareholders	PROMOTER AND PROMOTER GROUP - 51.12% PUBLIC SHAREHOLDING - 48.88%	Banking	CANARA BANK
Public Limited Corp.	YES	Business Period	39 YEARS
IPO	YES	International Ins.	--
Public Enterprise	YES	Rating	Aa (72)
Related Company
Relation	Country	Company Name	CEO
HOLDING COMPANY	--	TATA CONSULTANCY SERVICES LIMITED	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	7,147,379,000	Current Liabilities	2,474,256,000
Inventories	143,103,000	Long-term Liabilities	0,000
Fixed Assets	2,859,500,000	Other Liabilities	1,166,195,000
Deferred Assets	49,872,000	Total Liabilities	3,640,451,000
Invest& other Assets	1,768,218,000	Retained Earnings	8,024,621,000
		Net Worth	8,327,621,000
Total Assets	11,968,072,000	Total Liab. & Equity	11,968,072,000
Total Assets (Previous Year)	10,781,917,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	11,248,968,000	Net Profit	1,983,789,000
Sales (Previous yr)/	9,553,369,000	Net Profit (Prev.yr)	1,433,316,000

MIRA INFORM REPORT

Report Date :

21.03.2014

IDENTIFICATION DETAILS

Name :	CMC LIMITED
Registered Office :	CMC Centre, Old Mumbai Highway, Gachibowli, Hyderabad – 500 032, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.12.1975
Com. Reg. No.:	01-001970
Capital Investment / Paid-up Capital :	Rs.303.000 millions
CIN No.: [Company Identification No.]	L72200AP1975PLC001970
TAN No.: [Tax Deduction & Collection Account No.]	DELC06151F
PAN No.: [Permanent Account No.]	AAACC2030K
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the design, development and implementation of software technologies and applications, providing professional services in India and overseas, and procurement, installation, commissioning, warranty and maintenance of imported/indigenous computer and networking systems, and in education and training.
No. of Employees :	10663 (Approximately)

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 33310000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects healthy financial risk profile supported by adequate liquidity position and decent profitability of the company. 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limits: AA+
Rating Explanation	High degree of safety and low credit risk.
Date	February, 2014

Rating Agency Name	ICRA
Rating	Non-Fund Based Limits: A1+
Rating Explanation	Very strong degree of safety and very high credit risk.
Date	February, 2014

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 DECLINED

Management non-cooperative

(Tel. No.: 91-40-66578000)

LOCATIONS

Registered Office/ R&D Centre :	CMC Centre, Old Mumbai Highway, Gachibowli, Hyderabad – 500 032, Andhra Pradesh, India
Tel. No.:	91-40-66578000 (10 Lines)
Fax No.:	91-40-23000509
E-Mail :	vivek.agarwal@cmcltd.com
Website :	http://www.cmcltd.com
Corporate Office :	PTI Building, 5^th Floor, 4, Sansad Marg, New Delhi – 110 001, India
Tel. No.:	91-11-23736151-8 (8 Lines)
Fax No.:	91-11-23736159
Materials Management Centre :	CMC House, C-18, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-67811000/ 01/ 02
Fax No.:	91-22-26591444
Regional Office :	Located at: · Noida · Kolkata · Mumbai · Chennai · Hyderabad · Bangalore
Branch Office :	Located at: · Ahmedabad · Bhopal · Chandigarh · Dehradun · New Delhi · Jaipur · Kolkata · Lucknow · Mumbai · Pune · Raipur · Vadodara · Visakhapatnam
Overseas Office :	Located at: · Austin, Texas · California · Georgia · Louisiana · Michigan · New Jersey · Virginia · Massachusetts · London, UK · Dubai, U.A.E. · New Zealand

DIRECTORS

AS ON 31.03.2013

Name :	Mr. S. Ramadorai
Designation :	Chairman
Date of Birth/ Age :	06.10.1944
Qualifications :	Bachelor's degree in Physics from Delhi University, Bachelor's degree in Electronics and Telecommunications from IISC, Bangalore, Master's degree in Computer Science from University of California, USA and Executive MBA from Sloan School of Management, MIT
Expertise in specific functional areas :	Wide experience in Information Technology Services
Date of Appointment :	16.10.2001
Chairmanships / Directorships of other Companies (excluding foreign companies and Section 25 companies) :	· Tata Consultancy Services Limited · Tata Industries Limited · Tata Technologies Limited · Hindustan Unilever Limited · Piramal Enterprise Limited · Tata Elxsi Limited · Tata Teleservices (Maharashtra) Limited · Tata Communications Limited · Tata Advanced Systems Limited · Asian Paints Limited · BSE Limited · Tata Lockheed Martin Aerostructures Limited · Tata Aerospace Systems Limited
Name :	Mr. R. Ramanan
Designation :	Managing Director and Chief Executive Officer
Date of Birth/ Age :	09.10.1958
Qualifications :	B. Tech. (Electrical Engg.)
Expertise in specific functional areas :	Business Management
Date of Appointment :	16.10.2001
Chairmanships / Directorships of other Companies (excluding foreign companies and Section 25 companies) :	Tata Business Support Services Limited
Name :	Ms. Kalpana Morparia
Designation :	Director
Date of Birth/ Age :	30.05.1949
Qualifications :	Bachelor in Science and Law from Bombay University.
Expertise in specific functional areas :	Banking and Finance
Date of Appointment :	11.03.2008
Chairmanships / Directorships of other Companies (excluding foreign companies and Section 25 companies) :	· Dr. Reddy's Laboratories Limited · Bennett Coleman and Company Limited
Name :	Mr. Sudhakar Rao
Designation :	Director
Name :	Mr. S. Mahalingam
Designation :	Director (w.e.f. 14.01.2010)
Name :	Prof. M.S. Ananth
Designation :	Director
Date of Birth/ Age :	15.11.1945
Qualifications :	B. Tech(Gold Medalist) from University of Madras and M.E./Ph. D from University of Florida, USA.
Expertise in specific functional areas :	Business Management
Date of Appointment :	27.06.2012
Chairmanships / Directorships of other Companies (excluding foreign companies and Section 25 companies) :	· Chennai Petroleum Corp. Limited · UCAL Fuel Systems Limited
Name :	Mr. Ashok Sinha
Designation :	Director
Date of Birth/ Age :	15.02.1952
Qualifications :	B. Tech (Electrical Engg.) from IIT-Kanpur; MBA from IIMBangalore.
Expertise in specific functional areas :	Finance and Business Management
Date of Appointment :	11.07.2012
Chairmanships / Directorships of other Companies (excluding foreign companies and Section 25 companies) :	· Petronet LNG Limited · Axis Asset Management Company Limited
BOARD COMMITTEES :
Audit Committee :	Mr. Sudhakar Rao Mr. S. Mahalingam Mr. Ashok Sinha
Shareholders/Investors Grievance Committee :	Mr. Sudhakar Rao Mr. S. Mahalingam Mr. R. Ramanan
Governance Committee :	Ms. Kalpana Morparia Mr. S. Ramadorai Prof. M.S. Ananth Mr. Sudhakar Rao Mr. S. Mahalingam
Executive Committee :	Mr. S. Ramadorai Mr. R. Ramanan Ms. Kalpana Morparia Mr. S. Mahalingam Prof. M.S. Ananth
Ethics and Compliance Committee :	Mr Ashok Sinha Mr R. Ramanan Mr Vivek Agarwal

KEY EXECUTIVES

Name :	Mr J.K. Gupta
Designation :	Chief Financial Officer
Name :	Mr Vivek Agarwal
Designation :	Company Secretary
Name :	Mr Avadhesh Dixit
Designation :	Head - HR

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2013

Category of Shareholders	No. of Shares	Percentage of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	15489922	51.12
Sub Total	15489922	51.12
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	15489922	51.12
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3942965	13.01
Financial Institutions / Banks	1410463	4.65
Foreign Institutional Investors	6829908	22.54
Sub Total	12183336	40.21
(2) Non-Institutions
Bodies Corporate	589368	1.95
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1360349	4.49
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	377172	1.24
Any Others (Specify)	299853	0.99
Non Resident Indians	204093	0.67
Clearing Members	95660	0.32
Trusts	100	0.00
Sub Total	2626742	8.67
Total Public shareholding (B)	14810078	48.88
Total (A)+(B)	30300000	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)	30300000	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the design, development and implementation of software technologies and applications, providing professional services in India and overseas, and procurement, installation, commissioning, warranty and maintenance of imported/indigenous computer and networking systems, and in education and training.

Products :

ITC Code No.	Product Description
84.71	Automatic Data Processing Machines

GENERAL INFORMATION

No. of Employees :	10663 (Approximately)
Bankers :	Canara Bank State Bank of Bikaner and Jaipur · ICICI Bank Limited

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Secretarial Auditors :
Name :	Chandrasekaran Associates Company Secretaries
Internal Auditors :
Name :	Ernst and Young Private Limited
Ultimate Holding Company:	Tata Sons Limited
Holding Company:	Tata Consultancy Services Limited
Fellow Subsidiaries :	Tata AIG General Insurance Company Limited Tata Teleservices (Maharashtra) Limited Tata Consultancy Services, Netherlands BV Tata Consultancy Services Sverige AB Tata Teleservices Limited Tata Business Support Services Limited (formerly E2E Serwiz Solutions Limited) Infiniti Retail Limited Tata Consultancy Services, Asia Pacific Pte Limited Tata Housing Development Company Limited TCS Deutschland GmbH Nova Integrated System Limited
Subsidiary :	CMC Americas Inc. (formerly Baton Rouge International Inc.)
Step-down Subsidiary :	CMC eBiz, Inc. (wholly owned subsidiary of CMC Americas, Inc.)

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs.350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30300000	Equity Shares	Rs.10/- each	Rs.303.000 millions

Notes:

(i) The Company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held.

(ii) Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	As at 31^st March, 2013
Equity shares with voting rights	Number of share held	% holding
Tata Consultancy Services Limited	15489922	51.12
Aberdeen Global Indian Equity Fund - Mauritius Limited	1920000	6.34
Aberdeen Global - Asian Smaller Companies Fund	2017734	6.66
HDFC Trustees Company Limited - HDFC Equity Fund	1916132	6.32
Total	21343788	70.44

(iii) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	Opening Balance	Bonus	Closing Balance
Year ended 31^st March, 2013
- Number of shares	30300000	--	30300000
- Amount (Rs in Millions)	303.000	--	303.000

(iv) Details of shares held by Tata Consultancy Services Limited, the holding Company

Particulars	Aggregate number of shares
	As at 31^st March, 2013
Fully paid up equity shares with voting rights	15489922

(v) Aggregate number and class of shares allotted as bonus shares for the period of 5 years immediately preceding the Balance Sheet date:

Particulars	Aggregate number of shares
	As at 31^st March, 2013
Equity shares with voting rights
Fully paid up by way of bonus shares	15150000

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	303.000	303.000	151.500
(b) Reserves & Surplus	8024.621	6661.198	5819.577
(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)	8327.621	6964.198	5971.077
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	150.094	121.486	72.068
(d) Long-term provisions	266.442	274.573	251.176
Total Non-current Liabilities (3)	416.536	396.059	323.244
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	1803.484	1791.764	1436.835
(c) Other current liabilities	520.678	467.511	736.060
(d) Short-term provisions	899.753	1162.385	962.883
Total Current Liabilities (4)	3223.915	3421.660	3135.778
TOTAL	11968.072	10781.917	9430.099
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2842.567	2573.558	952.680
(ii) Intangible Assets	16.933	0.000	0.000
(iii) Capital work-in-progress	833.068	333.857	1075.495
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	81.801	81.801	81.801
(c) Deferred tax assets (net)	49.872	90.996	76.090
(d) Long-term Loan and Advances	1296.388	1400.864	1020.466
(e) Other Non-current assets	227.875	0.000	0.000
Total Non-Current Assets	5348.504	4481.076	3206.532
(2) Current assets
(a) Current investments	853.349	1515.780	2261.705
(b) Inventories	143.103	134.068	134.690
(c) Trade receivables	3350.349	2659.646	1747.137
(d) Cash and cash equivalents	298.730	221.738	338.768
(e) Short-term loans and advances	443.458	477.523	523.001
(f) Other current assets	1530.579	1292.086	1218.266
Total Current Assets	6619.568	6300.841	6223.567
TOTAL	11968.072	10781.917	9430.099

PROFIT & LOSS ACCOUNT

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

SALES

Revenue from operations

11248.968

9553.369

7980.821

Other Income

407.526

443.941

117.918

TOTAL (A)

11656.494

9997.310

8098.739

Less

EXPENSES

Purchases of stock-in-trade

1885.755

1448.116

990.579

Changes in inventories of work-in-progress and stock-in-trade

(17.869)

(3.348)

(32.336)

Employee benefits expense

3872.433

3425.837

2767.400

Other expenses

3311.810

3017.281

2531.782

TOTAL (B)

9052.129

7887.886

6257.425

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)

2604.365

2109.424

1841.314

Less

FINANCIAL EXPENSES (D)

1.562

0.094

0.095

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

2602.803

2109.330

1841.219

Less/ Add

DEPRECIATION/ AMORTISATION (F)

225.481

208.830

100.895

PROFIT/ (LOSS) BEFORE TAX (E-F) (G)

2377.322

1900.500

1740.324

Less

TAX (H)

393.533

467.184

183.012

PROFIT/ (LOSS) AFTER TAX (G-H) (I)

1983.789

1433.316

1557.312

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

6100.475

5250.686

4201.259

Less

APPROPRIATIONS

Dividends proposed to be distributed to equity shareholders Rs.17.50 per share (2012 - Rs.12.50 per share; 2011 - Rs.20.00 per share)

530.250

378.750

303.000

Tax on dividend

90.116

61.445

49.154

Transferred to general reserve

198.379

143.332

155.731

BALANCE CARRIED TO THE B/S

7265.519

6100.475

5250.686

EARNINGS IN FOREIGN CURRENCY

Export (Services)

3232.195

2843.142

2346.884

Export (Equipment Supply)

102.292

0.000

0.000

Dividend received from subsidiary

276.000

269.390

0.000

TOTAL EARNINGS

3610.487

3112.532

2346.884

IMPORTS

Equipment/ system software

357.621

242.303

234.885

Stores & Spares

0.233

0.626

0.684

Capital equipment

31.387

87.648

34.507

TOTAL IMPORTS

389.241

330.577

270.076

Earnings/ (Loss) Per Share (Rs.)

65.47

47.30

51.40

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	17.02	14.34	19.23
Net Profit Margin (PBT/Sales)	(%)	21.13	19.89	21.81
Return on Total Assets (PBT/Total Assets}	(%)	21.61	18.50	21.23
Return on Investment (ROI) (PBT/Networth)		0.29	0.27	0.29
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.05	1.84	1.98

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	151.500	303.000	303.000
Reserves & Surplus	5819.577	6661.198	8024.621
Net worth	5971.077	6964.198	8327.621
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	7980.821	9553.369	11248.968
		19.704	17.749

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	7980.821	9553.369	11248.968
Profit	1557.312	1433.316	1983.789
	19.51%	15.00%	17.64%

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

LITIGATION DETAILS:

CEA 35 / 2008

CEASR 232 / 2008

CASE IS:PENDING

PETITIONER		RESPONDENT
THE COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS	VS	CMC LIMITED
PET. ADV. : SATHYARAM(SR SC FOR CB EXCISE)		RESP. ADV. : PADMANABHAN
SUBJECT: SERVICE TAX LIABILITY		DISTRICT:  HYDERABAD

FILING DATE:  05-02-2008	POSTING STAGE :  FOR ADMISSION
REG. DATE    :   01-03-2008	LISTING DATE :  04-03-2008	STATUS   :  ---------

HON'BLE JUDGE(S):

B. PRAKASH RAO

C.Y. SOMAYAJULU

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90262305	13/10/2003 *	200,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS; BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA, INDIA	-
2	90261787	13/05/2003 *	50,000,000.00	STATE BANK OF BIKANER AND JAIPUR	71-72, LAXMI BHAWAN; NEHRU PLACE, NEW DELHI, DELHI, INDIA	-
3	90258129	13/05/2003 *	150,000,000.00	STATE BANK OF BIKANER AND JAIPUR	71-72, LAKMI BHAWAN; NEHRU PLACE, NEW DELHI, DELHI, INDIA	-
4	90261302	13/10/2003 *	351,000,000.00	CANARA BANK	CORPORATE SERVICE BRANCH, NEHRU PLACE, NEW DELHI, DELHI, INDIA	-
5	90261296	13/05/2003 *	100,000,000.00	CANARA BANK	CORPORATE SERVICE BRANCH, NEHRU PLACE, NEW DELHI, DELHI, INDIA	-

* Date of charge modification

BACKGROUND:

The Company is engaged in the design, development and implementation of software technologies and applications, providing professional services in India and overseas, and procurement, installation, commissioning, warranty and maintenance of imported/indigenous computer and networking systems, and in education and training.

The Company was a Government of India (GoI) enterprise up to 15^th October, 2001. Under the disinvestment process, GoI sold 7,726,500 shares representing 51 percent of the share capital to Tata Sons Limited, on 16 October, 2001. The GoI further sold its entire remaining shares representing 26.25 percent of the share capital, in March 2004 by an open offer to the public.

On 29^th March, 2004, as per specific approval granted by SEBI, Tata Sons Limited transferred its entire shareholding in the Company to Tata Consultancy Services Limited (a subsidiary of Tata Sons Limited). As a result, the Company has become a subsidiary of Tata Consultancy Services Limited.

SPECIAL ECONOMIC ZONE (SEZ)

The Company had taken up setting up of an IT and ITES Sector Specific Special Economic Zone (SEZ) at Hyderabad. The project is being developed in 3 phases at total estimated cost of Rs.4450.000 millions and will have total capacity of around 12500 seats when completed. Phase I of the project, consisting of Offshore Development Center (ODC) 1, 2 and 3 with seating capacity of 7000 seats was completed in 2008-09. In Phase II of the project, ODC 5 and 6 with seating capacity of 6000 became operational in 2011-12. Phase III of the project consisting of Multi Level Car Parking and ODC 4 with seating capacity of around 3500 is in full swing. The project is likely to be completed by December 2013. The Company has spent Rs.3061.600 millions on this project till 31 March, 2013. The Company had also set up another SEZ Unit in Kolkata to cater the demand of international client and provide them business continuity solution. The Company has also started construction of a new building in Kolkata with a built up area of 2.40 lakh sq. ft. at an estimated cost of Rs.730.000 millions. The project is likely to be completed by March 2015. On completion, this facility will have capacity of around 2000 seats.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

The global technology and related services sector recorded a steady growth of 4.8% in 2012 to USD 1.9 Trillion, in spite of a volatile economic environment. As per the latest report by NASSCOM, IT- BPM (earlier called BPO) services and software products continued to lead, accounting for over USD 1 trillion which is 58% of the total IT spend and the IT hardware accounted for the balance 42% of the worldwide technology spends in 2012.

As per the latest NASSCOM report, total revenues of Indian IT industry is expected to grow by about 13-15 per-cent to reach USD 106-111 billion in FY 2013-14; of which, exports are likely to be about USD 84-87 billion, a growth of about 12-14 per cent. Five major technology changes are expected to open new opportunities for service providers – smart computing (expected to drive industry-specific solutions), Software-as-a-Service (SaaS to play a dominant role), social technologies (empower all elements of an industry's value chain including suppliers, employees, customers and business partners), mobility (access to anytime, anywhere information) and analytics (real-time intelligence). These trends are expected to drive growth in overall technology spend by 6% in 2013 with Hardware emerging as the highest growth segment at 7.5% driven by an expected surge in demand for infrastructure upgrade and improvements, followed by packaged software at 6.5% and IT services at 4.2% as firms work at ways to reduce costs and increase profitability.

Global IT-BPM spend is expected to grow between 5-6% over the next 2 years and global sourcing is set to grow faster at about 7-8% during 2013. CMC is gearing itself to drive benefits of emerging trends and opportunities.

Business Segments of the Company:

The Company generates its revenue from 5 segments:

• Customer Services (CS)

• Systems Integration (SI)

• IT Enabled Services (ITeS)

• Education and Training (E&T)

• Special Economic Zone (SEZ)

Customer Services (CS):

The CS SBU focuses on creating solutions and providing services for the IT infrastructure requirements covering infrastructure architecture, design and consulting services; turnkey system integration of large network and data centre infrastructures. The scope of services includes supply of associated equipment and software; On-Site and Remote Support Services for multi-locations for the IT infrastructures of domestic and international clients. The Company is looking forward for new opportunities in service domain because of changes in the landscape of leveraging cloud based services, virtualization, and cloud migration.

Systems Integration (SI):

The SI SBU undertakes the activities of solution deployment that includes embedded systems, software development, software maintenance and support, turnkey project implementation and systems consultancy and has been one of the key drivers of its transformation towards more value added business with a view to improve overall margin. SI SBU continued to invest and grow its solution asset base during the year so that it can offer innovative solutions around the core IPs’ of these assets. This includes enhancements of Biometrics based Assets for identity management, mining assets for mining solutions, transportation assets, insurance and financial solution assets and e-governance assets.

IT enabled Services (ITeS):

The ITeS SBU provides a variety of IT enabled services which include Business Process Outsourcing and Knowledge Process Outsourcing for front end and Back office. This SBU has created specific business domain expertise such as on demand software services; office digitization and document management; recruitment and examination results management; legacy data migration management. Also, ITeS SBU continues to work for Election Commission as a state-level agency. ITeS SBU has taken initiatives to leverage its experience in handling large national projects for more rewarding international geographies and has over the years been one of the main drivers to increase international revenue of the Company.

Education and Training (E&T):

The E&T SBU of the Company offers education and training solutions for corporate organizations, government institutions and individuals. Its offerings include a wide range of courses that vary from information technology, soft skills training, integrated career development programmes, skill development to vocational training programmes. The Company offers integrated Learning Solutions for several corporations, and also conducts inductions and refresher programmes. In addition to the training programs for employees, it also delivers various skill enhancement programs for experienced people from the industry. Over the years E&T SBU faced cluttered and commoditized market, with a need to differentiate.

The E&T SBU has re-engineered its offerings in corporate and job enabling training segments to differentiate from the competitors. In addition the E&T SBU is exploring opportunities into vocational trainings.

Special Economic Zone (SEZ):

The Company is in the process of developing an SEZ spread over about 46.33 acres at its campus at Gachibowli,

Hyderabad. The Company started reporting SEZ as a separate segment from FY 2011-12 in line with Accounting Standard (AS) -17 Segment Reporting, as its assets reached the level of more than 10% of the total assets of the Company. The income from this segment represents income from renting out SEZ facilities to TCS.

Income:

Income from sales and services

The Company earned a total income from sales and services of Rs.19260.900 millions as compared to Rs.14669.600 millions during the previous year. Income from sales and services during the year grew by 31% over the previous financial year.

The Company's wholly owned subsidiary CMC Americas, Inc. earned revenue of $191.66mn in FY 2012-13 compared to $152.05mn in FY 2011-12 in dollar terms registering a growth of 26% over the previous financial year. The revenue growth in CMC Americas Inc., has been mainly contributed by software services. The share of international business in total operating revenue improved to 64% as compared to 60% over the previous year.

In domestic markets the Company earned a revenue of Rs.7028.600 millions in FY 2012-13 compared to Rs.5828.200 millions during the previous year. The Company derived its revenue growth in domestic markets mainly in CS segment which grew by 20% and ITeS segment which grew by 33% during the financial year 2012-13.

FUTURE OUTLOOK

The Company believes that the current trends in IT spend both domestically and in the international market presents unprecedented opportunity for growth. Liberalization and opening up of more infrastructure sectors like roads, airports and sea ports, national e-Governance initiatives and implementation of Mission mode projects, recent policy initiatives to make Indian companies more competitive including new policy on Special Economic Zone, the focus of Indian corporates to benchmark themselves with leading global players in terms of quality of processes and competitiveness, is going to drive an increase in IT spend. The Company is well poised to exploit the emerging opportunities both in India and global market in synergy with TCS.

CONTINGENT LIABILITIES AND COMMITMENTS:

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
a. Claims against the company not acknowledged as debts*
• Under litigation	229.032	358.621
• Demand from income tax authorities	134.742	180.706
• Disputed demands raised by sales tax authorities	44.857	83.665
• Demands raised by service tax authorities	659.103	636.248
• Disputed demand towards land use conversion fee	202.500	202.500
• Others	64.301	64.301
b. Unexpired Letters of Credit	57.332	0.883
c. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for	646.134	812.714

* No provision is considered necessary since the Company expects favorable decisions. The advance paid against the above is Rs.8.740 millions (Previous year Rs.99.623 millions).

Notes:

Includes Rs.58.555 millions (Previous year Rs.35.423 millions) pertaining to demand of income tax raised by the Deputy Commissioner of Income tax. The Company proposes to file an appeal before the appropriate authorities in respect of the same.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Leasehold Improvements

Intangible Assets

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.13
UK Pound	1	Rs.101.17
Euro	1	Rs.84.59

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	SMN

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	NO
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		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	--

-4

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.