MIRA INFORM REPORT

Report Date :

22.03.2014

IDENTIFICATION DETAILS

Name :	CMI FPE LIMITED
Formerly Known As :	FLAT PRODUCTS EQUIPMENTS (INDIA) PRIVATE LIMITED
Registered Office :	Mehta House, Plot No. 64, Road No. 13, MIDC Industrial Area, Marol, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.05.1986
Com. Reg. No.:	11-39921
Capital Investment / Paid-up Capital :	Rs. 49.378 Millions
CIN No.: [Company Identification No.]	L99999MH1986PLC039921
TAN No.: [Tax Deduction & Collection Account No.]	MUMF03321D
PAN No.: [Permanent Account No.]	AAACF0252G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges
Line of Business :	Manufacturer of Cold Rolling (CR) Mills, Galvanis Lines and Associated Equipments in India.
No. of Employees :	525 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 6024000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There are loss recorded by the company during 2013. However, general financial position of the company is good. The rating also takes into consideration technical, operational and managerial support from its parent company. Trade relation are reported to be fair. Business is active. Payment terms are reported to be regular. The company can be considered normal for business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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	CRISIL
Rating	Long term rating A
Rating Explanation	Have adequate degree of safety and carry low credit risk.
Date	February 14, 2014

Rating Agency Name	CRISIL
Rating	Short term rating A1
Rating Explanation	Have very strong degree of safety and carry lowest credit risk.
Date	February 14, 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 PARTED BY

Name :	Mr. Ajay Shah
Designation :	Finance Manager
Contact No.:	91-22-66762737
Date :	15.10.2013

LOCATIONS

Registered Office / Head Office :	Mehta House, Plot No. 64, Road No. 13, MIDC Industrial Area, Marol, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-66762737 / 66762727
Fax No.:	91-22-66762237 / 66762737 / 66762738
E-Mail :	sales@flatproducts.com fpe@cmigroupe.com vkmassociates@gmail.com kunal.trivedi@cmifpe.com Customer Feedback customerfeedback@cmifpe.com Jobs jobs@cmifpe.com Sales sales@cmifpe.com Investor Relations investors@cmifpe.com
Website :	http://www.cmigroupe.com http://www.flatproducts.com
Factory 1 :	A-84/2,3, M.I.D.C., Taloja Industrial Area, Taluka: Panvel, Dist: Raigad Maharashtra – 410208, Maharashtra, India
Tel. No.:	91-22-27403300
Fax No.:	91-22-27410664
Factory 2 :	Survey No.144/1/3, Village Rakholi, Silvassa Khanvel Road, Silvassa-396230, Union Territory of Dadra and Nagar Haveli
Tel. No.:	91-260-6451263 / 264
Fax No.:	91-260-2641259

DIRECTORS

As on: 31.03.2013

Name :	Mr. Jean Marc Kohlgruber
Designation :	Chairman
Name :	Mr. Jean Gourp
Designation :	Director (Managing Director Up to April 15, 2013)
Date of Birth/Age :	38 Years
Qualification :	Masters Degree in Mechanical Engineering
Expertise :	Vast Experience in Manufacturing, Sales and General Management
Name :	Mr. Yves Honhon
Designation :	Director
Name :	Mr. Ravindra Nath Tandon
Designation :	Director
Date of Birth/Age :	72 years
Qualification :	B.Sc. (M.E.)
Expertise :	Vast Experience in Steel Processing Infrastructure Development and Project Management
Name :	Mr. D. J. Balaji Rao
Designation :	Director
Name :	Mr. Raman M. Madhok
Designation :	Director
Date of Birth/Age :	52 years
Qualification :	M.S., MBA, Dip T and D
Expertise :	Vast Experience in Human Resources, Marketing, Project Management, General Management and Consulting
Other Directorship : Open Spaces Consulting Private Limited ARM Perspectives and Solutions Private Limited Qi Health and Education Consultant Private Limited
Name :	Mr. Sanjoy Kumar Das (w.e.f. April 15, 2013)
Designation :	Managing Director
Name :	Mr. N. Sundararajan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sanjay Kumar Mutha
Designation :	Company Secretary
Name :	Mr. Anand Kmar
Designation :	Chief Operating – Global Sourcing and Manufacturing
Name :	Mr. Deepak Khanna
Designation :	Chief Operating Officer – Engineering
Name :	Mr. Vijay Karayi
Designation :	Director – Management Assurance, QMS and CIO
Name :	Mr. Amul Niphadkar
Designation :	Vice President – HR
Name :	Mr. Akash Ohri
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2013

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	5500	0.11
Sub Total	5500	0.11
(2) Foreign
Bodies Corporate	3697700	74.89
Sub Total	3697700	74.89
Total shareholding of Promoter and Promoter Group (A)	3703200	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	200	0.00
Foreign Institutional Investors	1350	0.03
Sub Total	1550	0.03
(2) Non-Institutions
Bodies Corporate	136850	2.77
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	539877	10.93
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	528758	10.71
Any Others (Specify)	27578	0.56
Non Resident Indians	27578	0.56
Sub Total	1233063	24.97
Total Public shareholding (B)	1234613	25.00
Total (A)+(B)	4937813	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)	4937813	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cold Rolling (CR) Mills, Galvanis Lines and Associated Equipments in India.

Products :

Product Description	Item Code
Metal Cold Rolling Mill	8455.90.00
Galvanizing Line	8479.90.90
Metal Processing Line	8479.90.90

Cold Rolling Mills and Skin Pass Mills

¨ 4-High Cold Rolling Mills

¨ 6-High Cold Rolling Mills

¨ 20-High Cold Rolling Mills

¨ Z-High / 6-High (SENDZIMIR) Mills

¨ 4 High Skin Pass Mill

¨ 2 High Skin Pass Mill

¨ Aluminum Strip Mills

Processing Lines

¨ Pickling Lines

¨ Electrolytic Cleaning Lines

¨ Continuous Hot Dip Galvanising Lines

¨ Electrolytic Tinning Lines

¨ Tension Levelling Lines

¨ Paint Coating Lines

¨ Cut To Length Lines

¨ Slitting Lines

¨ Corrugating Machines

¨ Rewinding Lines

¨ 2-High Skin Pass Mills

¨ 4-High Cold Rolling Mills

¨ 4-High Skin Pass Mills

¨ 6-High Cold Rolling Mills

¨ Colour Coating Lines

¨ Corrugating Machines

¨ Cut-To-Length Lines/Sheet Shearing Lines

¨ Non-Ox Furnace Type Galvanising Lines

¨ Pickling Lines

¨ Rewinding/Trimming Lines

¨ Tension Levelling Lines

¨ Test Category

¨ Wet Flux Type Galvanising Lines

¨ Bottom of Form20-High Cold Rolling Mills

Exports :

Products :

Finished Goods

Countries :

¨ African Countries

¨ European Countries

Imports :

Products :

Raw Material

Countries :

¨ USA

¨ UK

¨ Korea

¨ African Countries

¨ European Countries

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :

·· Bottom of Form

Manufacturing, Retailers and end Users

No. of Employees :

525 (Approximately)

Bankers :

• Canara Bank
• Syndicate Bank
• Union Bank of India
• ING Vysya Bank
• ICICI Bank
• HDFC Bank Limited

Facilities :

Secured Loan	31.03.2013 [Rs. in Millions]	31.03.2012 [Rs. in Millions]
Long Term Borrowing
From bank	230.857	33.333
Short Term Borrowing
Loans from banks
Cash credit/Working capital demand loan	169.981	0.000
Buyer's credit	226.353	0.000
Total	627.191	33.333

NOTE:

Long Term Borrowing:

Details of terms of repayment for long-term borrowings and security provided in respect of the secured long term borrowings:

Particulars	Terms of repayment and security	31.03.2013	31.03.2012
Term loan from bank:
HDFC Bank Limited	Terms of repayment - Repayment is made in 16 equal quarterly installments starting from the end of 12 months from the date of first drawal i.e. 15 March, 2012 bearing interest @ HDFC base rate + 2.5% for first year and subsequently HDFC base rate + 3% Security - First charge over all the immovable properties and movable fixed assets of the Company located at Taloja and second pari passu charge on all current assets of the Company both present and future.	230.857	33.333
	Total	230.857	33.333

Short Term Borrowing:

The above borrowings from banks are secured by first charge over all the immovable properties and movable fixed assets of the Company located at Silvassa and Andheri and second charge over all the immovable properties and movable fixed assets of the Company located at Taloja and first pari passu charge on all current assets of the Company both present and future.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-40001, Maharashtra, India
Tel No. :	91-79-25782542, 43,
Fax No. ;	91-79-27582551
Cost Auditors :
Name :	Kishore Bhatia and Associates Cost Accountants
Holding Company :	œ Cockerill Maintenance and Ingenierie S.A.
Fellow Subsidiaries (with whom Company has made transactions during the year)	œ CMI Industry Automation Private Limited œ CMI UVK GmbH œ CMI Engineering (Beijing) Company œ CMI M+W Engineering GmbH

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs. 80.000 Millions
200000	Preference Shares	Rs.100/- each	Rs. 20.00 Millions
	Total		Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4937813	Equity Shares	Rs.10/- each	Rs. 49.378 Millions

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	49.378	49.378	49.378
(b) Reserves & Surplus	1456.693	1466.629	1385.711
(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)	1506.071	1516.007	1435.089
(3) Non-Current Liabilities
(a) long-term borrowings	230.857	33.333	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	89.899	143.752	343.716
(d) long-term provisions	116.713	104.412	80.612
Total Non-current Liabilities (3)	437.469	281.497	424.328
(4) Current Liabilities
(a) Short term borrowings	396.334	0.000	0.000
(b) Trade payables	1473.919	615.370	616.638
(c) Other current liabilities	1411.487	1653.216	1624.039
(d) Short-term provisions	170.988	166.839	274.216
Total Current Liabilities (4)	3452.728	2435.425	2514.893
TOTAL	5396.268	4232.929	4374.310
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	603.876	312.673	248.947
(ii) Intangible Assets	19.430	15.642	9.890
(iii) Capital work-in-progress	63.546	153.220	4.311
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.001	0.001	0.001
(c) Deferred tax assets (net)	61.573	52.250	48.370
(d) Long-term Loan and Advances	164.870	122.361	80.322
(e) Other Non-current assets	70.829	205.407	636.801
Total Non-Current Assets	984.125	861.554	1028.642
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	193.546	201.682	171.841
(c) Trade receivables	2640.473	1541.830	776.720
(d) Cash and cash equivalents	181.341	301.269	865.744
(e) Short-term loans and advances	333.117	325.581	332.586
(f) Other current assets	1063.666	1001.013	1198.777
Total Current Assets	4412.143	3371.375	3345.668
TOTAL	5396.268	4232.929	4374.310

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5328.953	3517.970	4184.053
		Other Income	76.172	58.232	252.367
		TOTAL	5405.125	3576.202	4436.420
Less	EXPENSES
		Cost of materials consumed	2392.894	1333.948	1507.432
		Purchases of stock-in-trade	1414.769	923.844	997.692
		Changes in inventories of finished goods and work-in-progress	(13.891)	(4.279)	5.858
		Employee benefits expense	434.022	380.472	343.335
		Other expenses	1119.087	716.829	787.397
		TOTAL	5346.881	3350.814	3641.714
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		58.244	225.388	794.706
Less	FINANCIAL EXPENSES		31.470	17.997	35.879
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		26.774	207.391	758.827
Less/ Add	DEPRECIATION/ AMORTISATION		46.033	43.872	49.093
	PROFIT BEFORE TAX		(19.259)	163.519	709.734
Less	TAX		(9.323)	53.907	237.948
	PROFIT AFTER TAX		(9.936)	109.612	471.786
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		412.499	342.542	248.183
Less	APPROPRIATIONS
		Transfer to General Reserve	--	10.961	262.650
		Dividend	--	24.689	49.378
		Ordinary Dividend	--	--	49.378
		Tax on Dividend	--	4.005	16.021
	BALANCE CARRIED TO THE B/S		402.563	412.499	342.542
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	705.219	752.445	392.010
		Export of services	17.163	18.700	7.422
	TOTAL EARNINGS		722.382	771.145	399.432
	IMPORTS
		Raw materials, components, stores and spares	822.855	545.170	466.467
		Capital goods	61.690	0.809	1.858
	TOTAL IMPORTS		884.545	545.979	468.325
	Earnings Per Share (Rs.)		(2.01)	22.20	95.55

Expected Sales (2013-2014): Rs. 5000.000 Millions (Because of slow down in the economy)

The above information has been parted by Mr. Ajay Shah

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.18)	3.06	10.63
Net Profit Margin (PBT/Sales)	(%)	(0.36)	4.65	16.96
Return on Total Assets (PBT/Total Assets}	(%)	(0.36)	4.06	16.42
Return on Investment (ROI) (PBT/Networth)		(0.01)	0.11	0.49
Debt Equity Ratio (Total Debt /Networth)		0.42	0.02	0.00
Current Ratio (Current Asset/Current Liability)		1.28	1.38	1.33

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	49.378	49.378	49.378
Reserves & Surplus	1385.711	1466.629	1456.693
Net worth	1435.089	1516.007	1506.071
long-term borrowings	0.000	33.333	230.857
Short term borrowings	0.000	0.000	396.334
Total borrowings	0.000	33.333	627.191
Debt/Equity ratio	0.000	0.022	0.416

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	4184.053	3517.970	5328.953
		(15.920)	51.478

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	4184.053	3517.970	5328.953
Profit	471.786	109.612	(9.936)
	11.28%	3.12%	(0.19%)

LOCAL AGENCY FURTHER INFORMATION

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

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10339492	15/02/2012	300,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	B33831249
2	90237236	11/09/2013 *	3,300,000,000.00	Canara Bank	PRIME CORPORATE BRANCH - 1, MAKER TOWER, F WING, 20TH FLOOR, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B86490372

* Date of charge modification

OPERATIONS:

The year was very challenging for the Company. The Company has secured substantial growth in the Total revenue of the Company by 51.14% to Rs. 5405.125 millions in the year as compared to Rs. 3576.202 millions in the previous year. Simultaneously, the Company has also successfully completed the major expansion and modernization plan at its Taloja plant.

Despite this, mainly due to difficult economic conditions coupled with fierce competition, high inflationary market conditions resulted in higher input cost, severe pressure on margins, which resulted in marginal operating loss for the year.

Members are aware that business environment continues to be volatile due to global slowdown, uncertain environment and high fiscal deficit and inflation. This is impacting the fresh long-term investments and/or delaying execution of existing projects, which resulted in modest growth in order entries during the year.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Ministry of Steel (Government of India) through National Steel Policy sets out the Government’s vision for the future of the steel industry. It aims at transforming Indian steel industry into a global leader in terms of production, consumption, and quality and techno economic efficiency while achieving economic, environmental and social sustainability. The vision is to ensure availability of quality steel to accelerate growth of the domestic economy and provide amenities of life to the people of India at par with the developed world. The Policy ensures sustainable development of the steel industry, provide sufficient infrastructure and facilitate easy availability of vital inputs such as natural resources and finance to support faster growth of Industry.

The Policy will encourage steel consumption, supporting R and D projects such as for product design and generic campaign in specific areas which help in addressing concerns related to environment, climate change, human health, housing for the masses and higher rural penetration for inclusive growth. It will also promote the advantages of steel use in terms of sustainability, durability, amenable design and life cycle costing compared to alternate materials like plastics and wood and will be made more visible and adequately propagated through sustained programmers of awareness.

The sustainable economic growth in India has led to more disposable income and increasing purchasing power with Indian households. This has resulted in higher demand for steel consuming products. In spite of India adopting policies that have stimulated consumer demand and fostered entrepreneurship, the per capita steel consumption has only increased to 57 kg in 2011 from 36.6 kg in 2005, which is significantly lower than China and other countries. It also highlights the potential in India for increased steel usage.

The contribution of flat steel in total steel consumption is higher for developed nations. Globally, this share is 55 58 per cent whereas in US, it stands at 70-73 per cent. In India, the contribution of flat steel is at the level of 45-48 per cent only. Though India is quite well integrated into the global economy, unlike most other Asian countries, demand drivers are more domestic market and consumption led rather than export market led. The growth over the last decade and the expected growth of 6-8 per cent over the next few years are going to significantly grow the consuming class.

The national policy seeks to facilitate the creation of additional capacity, removal of procedural and policy bottlenecks that affect the availability of production inputs, increased investment in research and development, an the creation of road, railway, and port infrastructure. The policy focuses on the domestic sector but also envisages a steel industry growing faster than domestic consumption, which will enable export opportunities to be realized. Current steel investment plans India’s ready availability of iron ore and low cost labor contribute significantly to the cost competitiveness of producing steel in India.

As per report of World Steel Association; steel demand is expected to pick up in India and demand expected to grow by 5.9% to 75.8 million tonne (mt) in 2013 following 2.5 % growth in 2012. Steel demand in India is likely to grow due to monetary easing which is expected to support investment activities. In 2014, growth in steel demand is expected to further accelerate to 7.0%, based on reform measures aimed at narrowing the fiscal deficit, coupled with measures to improve the foreign direct investment climate. This would further increase if the demand for steel in rural India increases.

The BRIC (Brazil, Russia, India and China) countries play a dominant role in the global iron and steel industry in terms of reserves, production and consumption. The steel industry in BRIC countries is expected to see sustainable growth over the next years.

In order to meet domestic steel demand, there is a requirement of large scale capacity additions both by private and public sector undertakings.

The Company has always believed in the long term growth potential of India and also invested significantly in capital expenditure to be ready to seize growth opportunities.

OUTLOOK:

The overall outlook for the steel sector is positive and the demand is likely to pick up in the coming financial year on the back of revival in economic growth and the Governments’ measures to ease infrastructure investment rules. India is currently the world’s fourth largest producer of crude steel after China, Japan, and the U.S. Major public and private sector firms are planning to expand their capacities. During the year under review, the growth in consumption of steel has been impacted by lower demand from steel using industries, which is likely to remain modest through in the current year. However, the long-term outlook for steel demand in India is quite robust due to increasing demand from several sectors, including automotive, consumer durables, oil and gas, industrial machinery, real estate and infrastructure and also the fact that per capita steel in India is still one of the lowest in the world.

Higher production of value-added products, capacity expansion, up gradation of production processes achieving cost effective production in an environment friendly manner, have been the major thrust areas of the Indian Steel producers in the recent times.

Keeping in view the economic environment in India and the Company’s domestic market as well as its primary markets overseas, the strategy going forward would be to facilitate proactive identification of additional needs of existing customers and servicing these in an effective manner. They would also be on the lookout to forge strategic relationships with existing and new customers in new products where they see significant potential, both in terms of business volumes and profitability.

As stated earlier, the per capita consumption of steel in India is significantly below international levels. The economic policy initiatives, particularly those towards infrastructure development are expected to have a favorable impact on the Company’s operations, going forward.

It would be relevant to mention here that as part of strategic orientation, CMI FPE already has a well established and appropriately staffed “Business Innovation Cell” which focuses on Value Engineering, low cost solutions, new products and customers’ need driven improvements in existing equipments and functionalities. The Business Innovation Cell works in close collaboration with the Innovation function at Group level to ensure, to the extent possible, coherence of initiatives taken at business unit level in India with those at Group level.

The Company has successfully completed the modernization and expansion plan of its Taloja Plant, which is now a “Centre of Excellence for Cold Rolling Mills”. The Plant is now equipped with improved infrastructure, machines, productivity and enhanced capacity. The Company is also progressively setting up a Greenfield facility at Hedavali, near Khopoli (Maharashtra), while close monitoring the future growth in the steel sector.

The Company’s short to medium term strategy would be to fully utilize its capacity to produce critical components and assemblies in-house at its own workshops and outsource the remaining workload either at a component level to vendors or at an assembly level with the overall objective of optimizing the supply chain.

On an overall basis, the Company would focus on meeting the complete spectrum of customer needs, thereby differentiating itself from the competition.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2013

Sr No.	Particulars (PART I)	Quarter Ended		Nine Months Ended
		31.12.2013	30.09.2013	31.12.2013
1	Income from operations
	(a) Net sales/income from operations (Net of excise duty)	1258.455	1216.000	3489.269
	(b) Other operating income	5.318	4.093	12.455
	Total income from operations (net)	1263.773	1220.093	3501.724
2	Expenses
	(a) Cost of materials consumed	368.734	357.747	170.170
	(b) Purchases of stock-in-trade	504.898	556.923	1390.082
	(c) Changes in inventories of finished goods and work-in-progress	2.052	(0.527)	18.536
	(d) Employee benefits expense	108.348	115.895	343.071
	(e) Depreciation and amortisation expense	22.389	21.362	64.557
	(f) Other expenses	157.451	315.064	762.850
	Total expenses	1163.872	1366.464	3749.266
3	Profit (Loss) from operations before other income, finance costs and exceptional items (1-2)	99.901	(146.371)	(247.542)
4	Other income	46.064	21.585	79.289
5	Profit/(Loss) from ordinary activities before finance costs and exceptional items (3*4)	145.965	(124.786)	(168.253)
6	Finance costs	16.418	17.660	53.548
7	Profit (Loss) from ordinary activities after finance costs but before exceptional items (5-6)	129.547	(142.446)	(221.601)
8	Exceptional items	--	--	--
9	Profit / (Loss) from ordinary activities before tax (7-8)	129.547	(142.446)	(221.601)
10	Tax expense	14.235	42.650	(14.440)
11	Net Profit/[Loss) from ordinary activities after tax (9-10)	115.312	(185.096)	(207.361)
12	Extraordinary items (net of tax expenses)	--	--	--
13	Net Profit/(Loss) for the period (11-12)	115.312	(185.096)	(207.361)
14	Paid-up equity share capital (Face Value Rs. 10/-)	49.378	49.378	49.378
15	Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year
16.	Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualised):
	(a) Basic (Rs.)	23.35	(37.49)	(41.99)
	(b) Diluted (Rs.)	23.35	(37.49)	(41.99)
	Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualised):
	(a) Basic (Rs.)	23.35	(37.49)	(41.99)
	(b) Diluted (Rs.)	23.35	(37.49)	(41.99)

SELECT INFORMATION FOR THE QUARTER ENDED DECEMBER 31, 2013

PART II
PARTICULARS OF SHAREHOLDING
Public Shareholding
- Number of Shares	1234613	1234613	1234613
- Percentage of Shareholding	25.00%	25.00%	25.00%
Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	Nil	Nil	Nil
- Percentage of shares (as a percentage of the total shareholding of Promoters and Promoter Group)	Nil	Nil	Nil
- Percentage of shares (as a percentage of the total capital of the Company)	Nil	Nil	Nil
b) Non-encumbered
- Number of Shares	3703.200	3703200	3703200
- Percentage of shares (as a percentage of the total shareholding of Promoters and Promoter Group)	100.00%	100.00%	100.00%
- Percentage of shares (as a percentage of the total capital of the Company)	75.00%	75.00%	75.00%

Particulars		Quarter ended June 30, 2013
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Remaining unresolved at the end of the quarter	Nil

REPORTING OF SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

	Particulars	31.12.2013	30.09.2013	31.12.2013
1	Segment Revenue [Sales revenue by geographical market)
	(a) India	613.454	724.547	2146.836
	(b) Overseas	645.001	491.453	1342.433
	(c) Unallocated	5.318	4.093	12.455
	Total	1263.773	1220.093	3501.724
	Less: Inter Segment Revenue	--	--	--
	Income from operations	1263.773	1220.093	3501.724
2	Segment Results [Profit/(Loss) before tax and finance costs from each segment]
	(a) India	28.961	25.987	82.844
	(b) Overseas	149.383	59.252	183.376
	(c) Unallocated	5.318	4.093	12.455
	Total	183.662	89.332	278.675
	(Add)/Less:
	(i) Interest (including other finance costs)	16.418	17.660	53.548
	(ii) Other Un-allocable Expenditure	83.761	235.703	526.217
	(iii) Un-allocable income	(46.064)	(21.585)	(79.289)
	Total Profit / (Loss) before tax	129.547	(142.446)	(221.801)
3	Capital Employed (Segment Assets - Segment Liabilities)
	(a)India	1027.346	1346.470	1027.346
	(b) Overseas	389.550	51.171	389.550
	(c) Unallocated - Corporate	(118.186)	(214.243)	(118.186)
	Total	129.710	1183.398	1298.710

NOTE:

1. The results of the Company are dependent on the gross margins of the product and project mix, which vary every quarter and get reflected accordingly.

2. The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors at its meeting held on February 6, 2014. The same have been subjected to Limited Review' by the Statutory Auditors.

3. The Company has been taking steps recovery of an amount of Rs. 3308.378 millions receivable from a foreign customer which has remained outstanding for over three years for several reasons. In view of the uncertainly, a provision of a reasonable portion of the balance is carried in the books of account.

4. As at December 31, 2013, the Company has incurred net unrealized mark-to-market loss slood of Rs. 40.114 millions on outstanding derivative contracts (As at September 30, 2013: Rs. 105.200 millions, As at December 31, 2013: Rs.Nil).

5. The Company has only one business segment i.e. Original Equipment Manufacture and Project management. It operates in two geographical segments i.e. India and Overseas.

6. Previous periods years figures have been regrouped and reclassified, were necessary to conform to the presentation of current period.

PRESS RELEASE:

CMI FPE to supply a Continuous Galvanizing Line and a Skin Pass Mill to AL Ghurair Iron and Steel (UAE)

Mumbai, July 31, 2013

CMI FPE Ltd., one of CMI Industry’s Indian subs idiaries, has entered into an agreement with Al Ghurair Iron and Steel (AGIS), United Arab Emirates, to supply a new Skin Pass Mill (SPM) as well as a new Continuous Galvanizing Line (CGL) equipped with the patented CMI Blowstab ® technology.

With these additional lines, CMI FPE enables AGIS’ capacity for galvanized production to double from existing 200,000 mts to 400,000 mts annually. The new processing line will supply galvanized coils from 0.20 mm to 1.20 mm. CMI FPE will also help AGIS to boost the Color Coating industry in the Middle East with the new Skin Pass Mill. CMI FPE is to commission these two new processing lines within 22 months.

The patented CMI Blow Stab ® technology for jet coolers and after-pot coolers will be integrated with the new galvanizing line & will further improve efficient cooling of strip and zinc coating uniformity.

Abu Bucker Husain, CEO, AGIS: “Our current production lines, that have been operational since 2009 were already designed and supplied by CMI FPE, and we are fully satisfied with the technology as well as their service.”

Sanjoy Das, Managing Director, CMI FPE Ltd.: “This contract with AGIS reaffirms CMI FPE’s ability to help customers increase their product range by providing optimal technical requirements of the market in a cost effective way.”

About CMI FPE

CMI FPE is the Indian hub of CMI Industry, a supplier of global solutions for Cold Rolling Mill complexes. It has developed a wide range of technologies in the field of processing lines, rolling mills, thermal and chemical processes.

About CMI Industry

As an expert in industrial processes, CMI Industry designs, integrates supplies and upgrades mechanical, thermal, chemical and biological treatment industrial equipment and energy efficiency solutions. CMI Industry supplies steelmakers with cold complexes and all their constituent equipment. Designed by CMI, these facilities boast stat e-of-the-art technologies for the production of increasingly more sophisticated flat carbon steel. Some of these technologies are also available in equipment for processing other products such as stainless steel, silicon steel or long products.

FIXED ASSETS:

œ Land

œ Flats

œ Building

œ Plant and Machinery

œ Furniture

œ Motor Car

œ Computers

œ Electrical Installations

œ Office Equipments

œ Computer

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 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.61.05
UK Pound	1	Rs.100.81
Euro	1	Rs.84.18

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.