MIRA INFORM REPORT

Report Date :

12.11.2014

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) :	31.03.2014
Date of Incorporation :	28.05.1986
Com. Reg. No.:	11-039921
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 :	Information Declined By The Management

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 5000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “COCKERILL MAINTENANCE AND INGENIERIE” S.A. it is an established company having satisfactory track record. The company has incurred losses from its operational activities. However, the rating reflect CMI FPF’s established position in the domestic and export markets as a manufacturer of cold rolling mills, along with the company’s sound financial risk profile and fair liquidity positon of the company. Further rating also takes into consideration financial and managerial support that company receives from its parent company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of strong holding support, the company can be considered for business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating=A/Negative(Outlook revised from stable)
Rating Explanation	Adequate degree of safety. It carry low credit risk.
Date	14.02.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating=A1
Rating Explanation	Very strong degree of safety. It carry lowest credit risk.
Date	14.02.2014

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 31-03-2014.

INFORMATION DENIED

Management Non Co-operative (91-22-66762737)

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: 31.03.2014

Name :	Mr. Jean Marc Kohlgruber
Designation :	Chairman
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
Name :	Mr. Yves Honhon
Designation :	Director
Name :	Mr. D. J. Balaji Rao
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. N. Sundararajan
Designation :	Director
Name :	Mr. Fabrice Orban (w.e.f. February 06, 2014)
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sanjay Kumar Mutha
Designation :	Company Secretary
Name :	Mr. Akash Ohri
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(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
Central Government / State Government(s)	4	0.00
Foreign Institutional Investors	1350	0.03
Sub Total	1554	0.03
(2) Non-Institutions
Bodies Corporate	134907	2.73
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	538655	10.91
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	534323	10.82
Any Others (Specify)	25174	0.51
Non Resident Indians	25174	0.51
Sub Total	1233059	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	100.00

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

GENERAL INFORMATION

No. of Employees :

Information Declined By The Management

Bankers :

· Canara Bank

· Syndicate Bank

· Union Bank of India

· ING Vysya Bank

· ICICI Bank

· HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
From Banks	173.143	230.857
Short Term Borrowings
Cash credit/Working capital demand loan	0.000	169.981
Buyer’s credit	109.505	226.353
Total	282.648	627.191

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 :	· Cockerill Maintenance and Ingenierie S.A.
Fellow Subsidiaries (with whom Company has made transactions during the year)	· CMI Industry Automation Private Limited · CMI UVK GmbH · CMI M+W Engineering GmbH

CAPITAL STRUCTURE

AS ON 31.03.2014

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

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

Equity Shares	Number of Shares	Rs. In Millions
Shares outstanding at the beginning of the year	4937813	49.378
Shares issued during the year	--	--
Shares bought back during the year	--	--
Shares outstanding at the end of the year	4937813	49.378

b) Terms/rights attached to equity shares:

The Company is having only one class of equity shares having par value of Rs. 10/- each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend, if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion of the paid up share capital held by the shareholders.

c) Details of shares held by the Holding Company and their Subsidiaries:

Equity Shares Equity shares with voting rights	Number of Shares
Cockerill Maintenance and Ingenierie SA, the Holding Company	3697700
CMI Industry Automation Private Limited, Subsidiary of the Holding Company	5500

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

Name of Shareholder Equity shares with voting rights	Number of Shares	% holding
Cockerill Maintenance and Ingenierie SA	3697700	74.89%

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	49.378	49.378	49.378
(b) Reserves & Surplus	1233.571	1456.693	1466.629
(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)	1282.949	1506.071	1516.007
(3) Non-Current Liabilities
(a) long-term borrowings	173.143	230.857	33.333
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	105.425	89.899	143.752
(d) long-term provisions	68.055	116.713	104.412
Total Non-current Liabilities (3)	346.623	437.469	281.497
(4) Current Liabilities
(a) Short term borrowings	109.505	396.334	0.000
(b) Trade payables	898.752	1473.919	615.370
(c) Other current liabilities	1220.892	1411.487	1653.216
(d) Short-term provisions	154.741	170.988	166.839
Total Current Liabilities (4)	2383.890	3452.728	2435.425
TOTAL	4013.462	5396.268	4232.929
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	602.484	603.876	312.673
(ii) Intangible Assets	10.928	19.430	15.642
(iii) Capital work-in-progress	59.012	63.546	153.220
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.001	0.001
(c) Deferred tax assets (net)	99.199	61.573	52.250
(d) Long-term Loan and Advances	106.594	164.870	122.361
(e) Other Non-current assets	52.655	70.829	205.407
Total Non-Current Assets	930.872	984.125	861.554
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	152.439	193.546	201.682
(c) Trade receivables	1750.599	2640.473	1541.830
(d) Cash and cash equivalents	106.864	181.341	301.269
(e) Short-term loans and advances	229.020	333.117	325.581
(f) Other current assets	843.668	1063.666	1001.013
Total Current Assets	3082.590	4412.143	3371.375
TOTAL	4013.462	5396.268	4232.929

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4428.327	5328.953	3517.970
		Other Income	155.312	76.172	58.232
		TOTAL	4583.639	5405.125	3576.202
Less	EXPENSES
		Cost of materials consumed	1500.934	2392.894	1333.948
		Purchases of stock-in-trade	1660.721	1414.769	923.844
		Changes in inventories of finished goods and work-in-progress	2.673	(13.891)	(4.279)
		Employee benefits expense	428.479	434.022	380.472
		Other expenses	1100.347	1119.087	716.829
		TOTAL	4693.154	5346.881	3350.814
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(109.515)	58.244	225.388
Less	FINANCIAL EXPENSES		67.020	31.470	17.997
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(176.535)	26.774	207.391
Less/ Add	DEPRECIATION/ AMORTISATION		83.804	46.033	43.872
	PROFIT BEFORE TAX		(260.339)	(19.259)	163.519
Less	TAX		(37.217)	(9.323)	53.907
	PROFIT AFTER TAX		(223.122)	(9.936)	109.612
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		402.563	412.499	342.542
Less	APPROPRIATIONS
		Transfer to General Reserve	--	--	10.961
		Dividend	--	--	24.689
		Ordinary Dividend	--	--	--
		Tax on Dividend	--	--	4.005
	BALANCE CARRIED TO THE B/S		179.441	402.563	412.499
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	990.026	705.219	752.445
		Export of services	12.001	17.163	18.700
	TOTAL EARNINGS		1002.027	722.382	771.145
	IMPORTS
		Raw materials, components, stores and spares	666.686	822.855	545.170
		Capital goods	0.000	61.690	0.809
	TOTAL IMPORTS		666.686	884.545	545.979
	Earnings/(Loss) Per Share (Rs.)		(45.19)	(2.01)	22.20

QUARTERLY / SUMMARISED RESULTS

Particulars (Rs. Millions)	Jun 2014	Sep 2014
Audited / UnAudited	UnAudited	UnAudited
Net Sales	521.100	534.900
Total Expenditure	563.500	577.500
PBIDT (Excl OI)	(42.400)	(42.600)
Other Income	58.600	66.500
Operating Profit	16.200	23.900
Interest	12.700	9.800
Exceptional Items	0.000	33.400
PBDT	3.500	47.500
Depreciation	29.800	1.200
Profit Before Tax	(2.64)	46.300
Tax	0.000	4.200
Provisions and contingencies	0.000	0.000
Profit After Tax	(26.4)	42.200
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(26.400)	42.200

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(5.04)	(0.19)	3.12
Operating Profit Margin (PBDIT / Sales)	(%)	(0.02)	(1.09)	6.41
Return on Total Assets (PBT/Total Assets}	(%)	(6.75)	(0.36)	4.06
Return on Investment (ROI) (PBT/Networth)		(0.20)	(0.01)	0.11
Debt Equity Ratio (Total Debt/Networth)		0.22	0.42	0.02
Current Ratio (Current Asset/Current Liability)		(4.87)	1.28	1.38

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	49.378	49.378	49.378
Reserves & Surplus	1466.629	1456.693	1233.571
Net worth	1516.007	1506.071	1282.949
long-term borrowings	33.333	230.857	173.143
Short term borrowings	0.000	396.334	109.505
Total borrowings	33.333	627.191	282.648
Debt/Equity ratio	0.022	0.416	0.220

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	3,517.970	5,328.953	4,428.327
		51.478	(16.901)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	3,517.970	5,328.953	4,428.327
Profit	109.612	(9.936)	(223.122)
	3.12%	(0.19%)	(5.04%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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	--
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

OPERATIONS

The year was one of the challenging phase for the Company. The financial results for the year under review and profitability were adversely impacted mainly due to a provision of Rs.195.094 Millions made by the Company against a receivable from a foreign customer, which had remained outstanding in the books of account for over three years for several reasons. The financial results were also impacted due to higher capital charges and depreciation associated with the commissioning of new capacities, and also due to much lower margins on projects under execution due to highly competitive environment.

Volatile business environment, political uncertainty, slower expansion of the domestic economy are impacting the fresh long-term investments and/or existing projects under execution, which resulted in marginal growth in the order entries during the year.

MANAGEMENT DISCUSSION

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is mainly catering to the steel industry, which is an important contributor to the Indian economy.

Globally, steel industry has been facing many challenges with rising input costs and persistent lower capacity utilisation primarily driven by low demand growth in developed markets, accompanied by a structural shift in the global steel industry to developing countries like China and India.

The Ministry of Steel (Government of India) through National Steel Policy sets out the Government’s vision for the future of the steel industry. The Policy ensures sustainable development of the steel industry, provides sufficient infrastructure and facilitates easy availability of vital inputs such as natural resources and finance to support faster growth of the Industry.

In spite of India adopting policies that have stimulated consumer demand and fostered entrepreneurship, the per capita steel consumption has only increased to around 60 kg, as against the world average of over 210 kg, and

460 kg in China. It also highlights the potential in India for increased steel usage.

According to the Planning Commission of India, the country’s steel production is expected to grow by around 60 million tonnes during the 12th Five Years Plan (FYP) (2011–12 to 2016–17).

According to the report of the working group on steel industry for the 12th FYP, the Indian urban population is expected to increase to 600 million by 2030 from the current level of 400 million. The rising middle-class urban population boosts demand for automobiles, white goods and other consumer durables leading to higher per capita steel consumption.

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 policy focuses on the domestic sector but also envisages a steel industry growing faster than domestic consumption, which will enable export opportunities to be realised.

In 2014-15, growth in steel demand is expected to accelerate 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 continue to 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.

The Company has always believed in the long term growth potential of India and therefore fully equipped with expanded capacities to seize growth opportunities.

OUTLOOK

The long-term outlook for India is positive, with investors expecting the country to be among the world’s top three growth economies by 2020.

The short-term slowdown does not mean a permanent shift to a lower growth trajectory. India has strong basic fundamentals, including a high rate of savings, an increasingly skilled labour force, a dynamic private sector with first-rate management capabilities and increasing global competitiveness in many areas. There are also some deficiencies, most notably in the area of infrastructure.

However, the Government recognizes these weaknesses and correcting them is a high priority. Steel demand in India is expected to remain high, derived by strong fundamentals and the sector is expected to see better investments in coming years. Small per capita consumption will be a major growth driver and India will need to add substantial steel capacity in coming years.

It is envisaged that more than Rs.1500-2000 billion is expected to be invested in the steel sector over the next 6-7 years. India became net steel exporter in 2013-14 after a gap of six years and is likely to maintain the momentum in 2014-15 as producers are looking to clock more overseas shipment to tide over subdued domestic consumption.

While higher exports were driven by volatility of rupee and mismatched demand-supply situation in the country; imports were lower mainly due to slowdown in the domestic economy.

India's steel consumption grew by just 0.6 per cent in 2013-14, its lowest in four years, to 73.93 million tonnes, impacted by a slower expansion of the domestic economy and lower imports. The low growth rate in domestic steel consumption indicated that base level demand conditions continued to be weak during 2013-14.

Recent appreciation of rupee and falling international steel prices have forced steelmakers to marginally cut prices of flat product like hot-rolled coil (HRC) in order to stay competitive with cheaper imports. Steel prices across the globe, barring the US, have remained under pressure because of excess supply.

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. Value-added products, capacity expansion, up gradation or revamping of production processes, cost effective production, would remain the major thrust areas of the Indian Steel producers in the recent times and will benefit your Company as an equipment supplier.

During the year, construction sector which accounts for around 60 per cent of the country's total steel demand and the automobile industry which consumes 15 per cent of the country's total steel demand, were hit by a slowdown in the economy. 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.

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.

We would also be on the lookout to forge strategic relationships with existing and new customers in new products where we see significant potential, both in terms of business volumes and profitability. The economic policy initiatives, particularly those towards infrastructure development and creation of additional capacities are expected to have a favourable impact on the Company’s operations, going forward.

The Taloja Plant, a “Centre of Excellence for Cold Rolling Mills”, is now fully equipped with improved infrastructure, machines, productivity and enhanced capacity. The Company also started fabrication facility work at Hedavali, near Khopoli (Maharashtra).

The Company’s short to medium term strategy would be to utilize its capacity to produce critical components and assemblies in-house at its own workshops with the overall objective to meet the complete spectrum of customer needs, thereby differentiating itself from the competition.

REVIEW OF OPERATIONS

The financial results for the year and profitability were adversely impacted due to mainly a provision of Rs.195.094 Millions made by the Company against the receivable from a foreign customer, which had remained outstanding in the books of account for over three years for several reasons. The financial results were also impacted due to higher capital charges and depreciation associated with the commissioning of new capacities along with much lower margins on projects under execution due to highly competitive environment.

During the year 2013-14, the total revenue at Rs.4583.639 Millions decreased by 15.20% over the previous year.

The Company recorded a loss after tax of Rs.223.122 Millions as compared to loss after tax of Rs.9.936 Millions in the previous year. The earnings per equity share of Rs.10 was (Rs.45.19) as against (Rs.2.01) in the previous year.

INDEX OF CHARGE:

Sr. 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

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2014

Sr. No.	Particulars			Rs in Millions Quarter ended as on 30.09.2014 (Unaudited)	Rs in Millions Quarter ended as on 30.06.2014 (Unaudited)	Rs in Millions Half year ended as on 30.09.2014 (Unaudited)
1	(a) Net Sales/Income from Operations			526.660	514.516	1041.176
	(b)Other Operating Income			8.264	6.583	14.847
	Total Income From Operations (Net)			534.924	521.099	1056.023
2	Expenditure
	(a)		Cost of Materials Consumed	188.655	142.803	331.458
	(b)		Purchases of Stock-in-Trade	178.071	208.128	386.199
	(c)		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	4.918	6.467	11.385
	(d)		Employees benefits expense	117.047	117.932	234.979
	(e)		Depreciation and amortization expense	1.177	29.843	31.020
	(f )		Other expenses	88.791	88.164	176.955
			TOTAL (B)	578.659	593.337	1171.996
3	Profit from operation before other income, interest and other exceptional items(1-2)			(43.735)	(72.238)	(115.973)
4	Other Income			66.436	58.578	125.014
5	profit before interest and exceptional items(3+4)			22.701	(13.660)	9.041
6	Interest			9.824	12.712	22.536
7	Profit after interest but before exceptional items(5-6)			12.877	(26.372)	(13.495)
8	Exceptional Items			33.429	--	33.429
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			46.306	(26.372)	19.934
10	Tax Expenses			4.150	--	4.150
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			42.156	(26.372)	15.784
12	Extra Ordinary Items			--	--	--
13	Net Profit(+)/Loss(-) for the period (1112)			42.156	(26.372)	15.784
14	Paid-up Equity Share Capital Rs.10/ per share			49.378	49.378	49.378
15	Reserves excluding revaluation reserves			--	--	--
16		Earning Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		8.54	(5.34)	3.20
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		8.54	(5.34)	3.20
17		Public Shareholding
		Number of Shares		1234613	1234613	1234613
		Percentage of Shareholding		25.00	25.00	25.00
18		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		Nil	Nil	Nil
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		Nil	Nil	Nil
		Percentage of Shares (as a % of the total share capital of the Company)		Nil	Nil	Nil
		b) Non-encumbered
		Number of shares		3703200	3703200	3703200
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100.00	100.00	100.00
		Percentage of Shares (as a % of the total share capital of the Company)		75.00	75.00	75.00
		Particulars				3 months ended 30.06.2014
		INVESTOR COMPLAINTS
		Pending at the beginning of the quarter				NIL
		Received during the quarter				2
		Disposed off during the quarter				2
		Remaining unresolved at the end of the quarter				NIL

REPORTING OF SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Particulars	Rs in Millions Quarter ended as on 30.09.2014 (Unaudited)	Rs in Millions Quarter ended as on 30.06.2014 (Unaudited)	Rs in Millions Half year ended as on 30.09.2014 (Unaudited)
Segment Revenue :
India	362.505	418.213	780.718
Overseas	164.155	96.303	260.458
unallocated	8.264	6.583	14.847
Total	534.924	521.099	1056.023
Less : Intersegment Sales	--	--	--
Net Sales	534.924	521.099	1056.023
Segment Results :
India	14.638	40.977	55.615
Overseas	24.498	29.482	53.980
unallocated	8.264	6.583	14.847
Total	47.400	77.042	124.442
Less : Interest Expenses	9.824	12.712	22.536
Other Un –allocable Expenditure	91.135	149.280	240.415
Un – allocable income	(66.436)	(58.578)	(125.014)
Profit / (Loss) before exceptional items and tax	12.877	(26.372)	(13.495)
Exceptional Items	33.429	--	33.429
Profit /(Loss) Before Tax	46.306	(26.372)	19.934
Capital Employed
India	1195.871	1073.457	1195.871
Overseas	98.246	71.133	98.246
Unallocated – Corporate	4.852	101.993	4.852
Total	1298.969	1246.583	1298.969

STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	30.09.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	49.378
(b) Reserves & Surplus	1249.591
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	1298.969
(3) Non-Current Liabilities
(a) long-term borrowings	144.286
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	44.413
(d) long-term provisions	89.147
Total Non-current Liabilities (3)	277.846
(4) Current Liabilities
(a) Short term borrowings	95.399
(b) Trade payables	611.386
(c) Other current liabilities	1347.724
(d) Short-term provisions	117.925
Total Current Liabilities (4)	2172.434
TOTAL	3749.249
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	746.341
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	77.836
(d) Long-term Loan and Advances	109.061
(e) Other Non-current assets	85.599
Total Non-Current Assets	1018.837
(2) Current assets
(a) Current investments	0.000
(b) Inventories	185.907
(c) Trade receivables	1414.779
(d) Cash and cash equivalents	130.923
(e) Short-term loans and advances	209.545
(f) Other current assets	789.258
Total Current Assets	2730.412
TOTAL	3749.249

Notes:

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 October 29, 2014. The same have been subjected to ‘Limited Review” by the Statutory Auditors.

3.
During the quarter, the company has revised it policy of providing depreciation on fixed assets effective April 1, 014. Depreciation is now provided on a straight line basis for all assets as against the policy of providing depreciation on written down value basis for some assets and straight line basis for others. Further, pursuant to Ministry of Corporate Affairs notification no. G. S. R. 627(E) dated August 29, 2014, the amount transferred to opening balance of retained earnings in an earlier quarter pursuant to the application of note 7(b) of pat C of schedule II to the companies Act, 213 has now been changed to the statement of Profit and Loss. As a result these changes, the depreciation change for the period ended September 30, 2014 is lower by Rs. 57.478 Millions and effect relating to the period prior to April 1, 2014 is net credit of Rs. 33.429 Millions (excluding deferred tax of Rs. 17.213 Millions) which has been shown as an “Exceptional item” in the statement of Unaudited Financial Results.

4. During the quarter, the company in continuations of optimizations and consolidation of manufacturing operations, has completed relocation of its silvassa operations to the company’s taloja and headvall workshops.

5. With effect from April 1, 2014, the company has applied the Hedge Accounting Principles set out in the Accounting Standard (AS) -30 “Financial instruments Recognition and Measurement”. Accordingly changes in the fair value of the forward contracts that are designed and effective as cash flow hedges are recognized directly in the hedging reserve account and ineffective portion of such cash flow and the gain or loss on fair value hedges are recognized in the statement of profit and loss.

6. The company has only on business segment i.e. Original Equipment Manufacture and Project Management. It operated in two geographical segments i.e. India and overseas

7. Previous period year’s figures have been regrouped and reclassified, whenever necessary to conform to the presentation of current period.

FIXED ASSETS:

· Land

· Flats

· Building

· Plant and Machinery

· Furniture

· Motor Car

· Computers

· Electrical Installations

· Office Equipments

· 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 judgment or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration:

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

3] Asset Declaration:

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

4] Record on Financial Crime:

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws:

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government:

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

9] Compensation Package:

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

10] Press Report:

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.55
UK Pound	1	Rs.97.53
Euro	1	Rs.76.48

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	JAY

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	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		48

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.