MIRA INFORM REPORT

Report Date :

29.10.2014

IDENTIFICATION DETAILS

Name :	RAMKRISHNA FORGINGS LIMITED
Registered Office :	Ramkrishna Chambers, 72, Shakespeare Sarani, Kolkata – 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.11.1981
Com. Reg. No.:	21-034281
Capital Investment / Paid-up Capital :	Rs. 260.994 Millions
CIN No.: [Company Identification No.]	L74210WB1981PLC034281
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Forged and Rolled Components for the Railways, Automobile etc.
No. of Employees :	3000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 9200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects RKFL’s established market position in the forgings industry market by adequate operating efficiencies and sound liquidity position of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 = BBB+
Rating Explanation	Moderate Degree of Safety and Moderate Credit Risk
Date	June 06, 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 PARTED BY

Name :	Mr. Uday Choubey
Designation :	Accounts Executive
Contact No.:	91-33-39840999
Date :	22.10.2014

LOCATIONS

Registered Office / Corporate Office :	Ramkrishna Chambers, 72, Shakespeare Sarani, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-39840999
Fax No.:	91-33-39840998
E-Mail :	neha.gupta@ramkrishnaforgings.com
Website :	www.ramkrishnaforgings.com
Location:	Owned
Factory 1 :	Plot No. M-6, Phase VI, Gamaria, Jamshedpur - 832108, Jharkhand, India
Tel. No.:	91-657-3204242/3204249
Fax No.:	91-657-2202814
E-Mail :	forgings-division@ramkrishnaforgings.com
Factory 2 :	7/40, Duffer Street, Liluah, Howrah - 711 204, West Bengal, India
Tel. No.:	91-33-32550894
Fax No.:	91-33-26545729
Factory 3 :	Plot No. M-15,16 and NS-26, Phase VII, Adityapur Industrial Area, Jamshedpur - 832109, Jharkhand, India
Tel. No.:	91-657-3984999/ 3984900
Fax No.:	91-0657-3984998
E-Mail :	cnc-division@ramkrishnaforgings.com
Factory 4 :	Baliguma, Kolabira, Sareikela, Kharsawan – 833220, Jamshedpur - 832109

DIRECTORS

As on 31.03.2014

Name :	Mr. Mahabir Prasad Jalan
Designation :	Chairman
Date of Birth/Age :	65 Years
Qualification :	B. Tech
Date of Appointment :	12.11.1981
Name :	Mr. Naresh Jalan
Designation :	Managing Director
Date of Birth/Age :	40 Years
Qualification :	MBA (Marketing and Finance)
Date of Appointment :	05.11.2001
Name :	Mr. Pawan Kumar Kedia
Designation :	Finance Director
Name :	Mr. Padam Kumar Khaitan
Designation :	Non-Executive Director
Name :	Mr. Satish Kumar Mehta
Designation :	Non-Executive Director
Name :	Mr. Subhasis Majumdar
Designation :	Nominee Director
Name :	Mr. Surendra Mohan Lakhotia
Designation :	Non-Executive Director
Name :	Mr. Yudhisthir Lal Madan
Designation :	Additional Director
Name :	Mr. Ram Tawakya Singh
Designation :	Additional Director
Name :	Mr. Ravi Lekhrajani
Designation :	Additional Director

KEY EXECUTIVES

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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.07.2014

Category of Shareholder	Total No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1544250	5.62
Bodies Corporate	10273913	42.39
Sub Total	11818163	48.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11818163	48.01
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2227156	8.11
Foreign Institutional Investors	109662	0.40
Any Others (Specify)	8085900	29.44
Any Other
Sub Total	10422718	37.94
(2) Non-Institutions
Bodies Corporate	1395702	5.08
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	791092	2.90
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1635541	5.95
Any Others (Specify)	31087	0.11
Non Resident Indians	4069	0.01
Clearing Members	27018	0.10
Sub Total	3853422	14.05
Total Public shareholding (B)	14276140	51.99
Total (A)+(B)	26094303	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	26094303	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Forged and Rolled Components for the Railways, Automobile etc.
Exports :
Products :	· Forged Components · Rolled Components
Countries :	· USA · Italy · Germany · Brazil
Imports :
Products :	· Raw Material
Countries :	· Germany · Korea · Japan
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

3000 (Approximately)

Bankers :

· DBS Bank

· Export Import Bank of India

· Hongkong and Shanghai Banking Corporation Bank

· ICICI Bank

· IDBI Bank

· Indian Overseas Bank

· Standard Chartered Bank

· State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term Loan from Bank	3572.170	1268.403
SHORT TERM BORROWING
Loans Repayable on demand
From Bank – Working Capital Loan	1099.033	975.757
Total	4671.203	2244.160

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

CAPITAL STRUCTURE

As on 17.06.2014

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
27469900	Equity Shares	Rs.10/- each	Rs. 274.699 Millions

As on 31.03.2014

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26099440	Equity Shares	Rs.10/- each	Rs. 260.994 Millions

i) The Company had issued 30,77,000 warrants to M/s. Eastern Credit Capital (P) Limited (Formally Eastern Credit Capital Limited), Promoter group, on a preferential basis at a price of ` 130 per warrant. Out of the above 12,79,000 warrants has been converted into equity shares during the year and the balance 17,80,000 warrants could be converted into equity shares of ` 10/- each at a premium of ` 120/- within 18 months from the date of allotment i.e. 19th January, 2013.

The Company on 3rd April, 2013 has issued and allotted 37,24,500 equity shares of ` 10 each to Wayzata II Indian Ocean Limited at a Price of ` 132.75 per share.

The Company had a balance of ` 282.45 Lacs at the beginning of the year and has received an amount of ` Rs. 590.952 Millions on account of issue of shares to Wayzata II Indian Ocean Limited and conversion of warrants issued to Promoters into equity shares. Out of above an amount of Rs. 581.146 Millions has been utilised for financing the capital expenditure in respect of the Project and an amount of ` 380.52 Lacs is lying in the bank accounts of the Company.

The Company has received an amount of ` 75.68 Lacs for further conversion of warrants into equity shares and the same is also lying in the bank accounts of the Company.

a) Reconciliation of the number of Shares outstanding:

Equity Shares	31.03.2014
Outstanding at the beginning of the year	21.096
Add: Shares issued on Allotment	3.724
Add: Shares issued on conversion of warrants	1.279
Outstanding at the end of the year	26.099

b. The Company does not have any Holding Company.

c. The Company had issued 30,77,000 warrants to M/s. Eastern Credit Capital (P) Limited (Formally Eastern Credit Capital Limited), Promoter group, on a preferential basis at a price of ` 130 per warrant . Out of the above 12,97,000 warrants has been converted into equity shares and the balance 17,80,000 warrants could be converted into equity shares of ` 10/- each at a premium of ` 120/- within 18 months from the date of allotment i.e 19th January, 2013.

d. Right, Preference and restrictions attached to Shares:-

The Company has one class of equity shares having a par value of ` 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Director is subject to the approval of the shareholders at the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquid􀆟on, the equity shareholders are eligible to receive the remaining assets of the Company after distribute􀆟on of all preferential amount, in proportion to their shareholding. For the year ended 31st March, 2014, the Board of Directors of the Company has recommended dividend of ` 1/- per share (Previous year ` 1/- per share) to equity shareholders aggregating to Rs. 26.099 Millions (Previous year Rs 25.109 Millions). The total payout together with the Corporate Dividend Distribution Tax of Rs. 4.436 Millions (Previous year Rs. 4.269 Millions), will be Rs. 30.535 Millions (Previous year Rs. 29.378 Millions).

e. Shareholder holding more than 5 percent shares of the Company:

	31.03.2014
	Numbers of Shares held	Percentage of Holding
1. Riddhi Portfolio Private Limited	6025913	23.09
2. Wayzata II Indian Ocean Limited.	5937500	22.75
3. Eastern Credit Private Limited.	4248000	16.28
4. International Finance Corporation	2148000	8.23
5. Reliance Capital Trustee Co. Ltd. - a/c Reliance Tax Saver (ELSS) Fund	1438917	5.51
6. Unit Trust of India - a/c Investment Advisory Services Ltd. a/c Ascent India Fund	NIL	NIL

f. The Company has not reserved any shares for issue of option and contract / commitment for sales of shares / disinvestment.

g. The Company during the preceding 5 years -

i. Has not allotted shares pursuant to contracts with payment received in cash.

ii. Has not allotted shares as fully paid up by way of bonus shares

iii. Has not bought back any shares

i.There are no calls unpaid by Directors / Officers.

j. The Company has not forfeited any shares.

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	260.994	210.959	181.485
(b) Reserves & Surplus	2905.386	2202.293	1702.820
(c) Money received against share warrants	65.418	127.663	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3231.798	2540.915	1884.305
(3) Non-Current Liabilities
(a) long-term borrowings	3572.170	1275.287	820.612
(b) Deferred tax liabilities (Net)	309.006	318.320	252.880
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.338	2.107	4.182
Total Non-current Liabilities (3)	3883.514	1595.714	1077.674
(4) Current Liabilities
(a) Short term borrowings	1148.483	1015.009	709.944
(b) Trade payables	1022.207	534.943	796.089
(c) Other current liabilities	804.329	542.289	413.960
(d) Short-term provisions	35.077	34.936	46.682
Total Current Liabilities (4)	3010.096	2127.177	1966.675
TOTAL	10125.408	6263.806	4928.654
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2311.049	2396.792	2444.727
(ii) Intangible Assets	25.926	25.608	18.926
(iii) Capital work-in-progress	3470.398	396.247	36.071
(iv) Intangible assets under development	0.000	0.000	5.344
(b) Non-current Investments	67.032	58.646	0.050
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	944.983	676.607	184.956
(e) Other Non-current assets	0.000	6.720	5.181
Total Non-Current Assets	6819.388	3560.620	2695.255
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1571.347	1491.873	1310.075
(c) Trade receivables	1149.705	802.743	709.273
(d) Cash and cash equivalents	142.834	29.915	3.000
(e) Short-term loans and advances	178.699	235.207	87.090
(f) Other current assets	263.435	143.448	123.961
Total Current Assets	3306.020	2703.186	2233.399
TOTAL	10125.408	6263.806	4928.654

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4295.278	4038.970	5012.629
		Other Income	23.869	13.297	7.650
		TOTAL	4319.147	4052.267	5020.279
Less	EXPENSES
		Cost of Materials Consumed	2170.963	2265.470	2872.408
		Changes in inventories	106.226	(180.000)	(95.639)
		Employees benefits expense	291.795	280.699	268.045
		Power and Fuel	431.072	444.522	464.802
		Other expenses	719.445	612.487	693.648
		TOTAL	3719.501	3423.178	4203.264
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		599.646	629.089	817.015
Less	FINANCIAL EXPENSES		222.638	216.828	187.889
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		377.008	412.261	629.126
Less/ Add	DEPRECIATION/ AMORTISATION		249.179	226.221	270.674
	PROFIT BEFORE TAX		127.829	186.040	358.452
Less	TAX		43.304	75.752	115.560
	PROFIT AFTER TAX		84.525	110.288	242.892
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		919.560	848.650	668.651
Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	10.000	18.500
		Dividend	26.099	25.109	36.297
		Tax on Distributed Profits	4.436	4.269	5.889
		Dividend and Tax	0.000	0.000	2.207
		Total	35.535	39.378	62.893
	BALANCE CARRIED TO THE B/S		968.550	919.560	848.650
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	992.474	519.761	453.458
		Die design and preparation charged (recovered)	141.141	2.506	4.919
	TOTAL EARNINGS		1133.615	522.267	458.377
	IMPORTS
		Raw Materials
		Components and Stores parts	13.109	10.467	15.735
		Capital Goods	1726.899	18.302	123.986
		TOTAL IMPORTS	1740.008	28.769	139.721
	Earnings Per Share (Rs.)		3.34	5.89	13.61

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.96	2.72	4.84
Net Profit Margin (PBT/Sales)	(%)	2.98	4.61	7.15
Return on Total Assets (PBT/Total Assets}	(%)	1.94	3.20	7.33
Return on Investment (ROI) (PBT/Networth)		0.04	0.07	0.19
Debt Equity Ratio (Total Debt /Networth)		1.46	0.90	0.81
Current Ratio (Current Asset/Current Liability)		1.10	1.27	1.14

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	181.485	210.959	260.994
Reserves & Surplus	1702.820	2202.293	2905.386
Money received against share warrants	0.000	127.663	65.418
Net worth	1884.305	2540.915	3231.798
long-term borrowings	820.612	1275.287	3572.170
Short term borrowings	709.944	1015.009	1148.483
Total borrowings	1530.556	2290.296	4720.653
Debt/Equity ratio	0.812	0.901	1.461

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	5012.629	4038.970	4295.278
		(19.424)	6.346

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	5012.629	4038.970	4295.278
Profit	242.892	110.288	84.525
	4.85%	2.73%	1.97%

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Banks
Term Loan – VAT Deferment Payment Scheme	0.000	6.884
SHORT TERM BORROWING
Loans Repayable on demand – from Bank	49.450	39.252
Total	49.450	46.136

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10514201	08/08/2014	100,000,000.00	IDBI Bank Limited	Kolkata Main Branch,, IDBI House, 44 Shakespeare  Sarani, Kolkata, West Bengal - 700017, INDIA	C15885247
2	10476053	29/01/2014	868,000,000.00	INTERNATIONAL FINANCE CORPORATION	2121 Pennsylvania Avenue, N.W, Washington, D.C. 2  0433, United States of America, - 20433, UNITED S  TATES OF AMERICA	B95672507
3	10476057	17/01/2014	868,000,000.00	INTERNATIONAL FINANCE CORPORATION	2121 Pennsylvania Avenue, N.W, Washington, D.C. 2  0433, United States of America, - 20433, UNITED S  TATES OF AMERICA	B95672747
4	10455941	07/09/2013	100,000,000.00	STATE BANK OF INDIA	Commercial Branch, Jamshedpur, Pratap Tower, Bist  upur, Jamshedpur, Jharkhand - 831001, INDIA	B87905683
5	10443556	29/07/2013	220,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Guj  arat - 390015, INDIA	B82359167
6	10437673	01/08/2013 *	610,000,000.00	DBS BANK LTD. (ACTING AS AN SECURITY TRUSTEE)	KOLKATA BRANCH, 4A, NANDALAL BASU SARANI, KOLKATA  , West Bengal - 700071, INDIA	B81110652
7	10429409	30/05/2013	1,354,459,000.00	LANDESBANK BADEN-WURTTEMBERG	Am Hauptbahnhof 2, 70173 Stuttgart, Federal Repub  lic of Germany, STUTTGART, - 70173, GERMANY	B76445428
8	10421002	05/07/2013 *	150,000,000.00	DBS BANK LTD.	4A, NANDALAL BASU SARANI, KOLKATA, West Bengal - 7  00071, INDIA	B79985693
9	10419296	17/02/2014 *	370,000,000.00	DCB BANK LIMITED	601 & 602, Peninsula Business Park, 6th floor,, T  ower A, Senapati Bapat Marg, Lower Parel,, Mumbai,  Maharashtra - 400013, INDIA	B97712095
10	10387878	05/07/2013 *	1,000,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE  COMPLEX, CUFFE PARADE, Mumbai, Maharashtra - 4000  05, INDIA	B83470831
11	10362255	28/06/2012	550,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Guj  arat - 390015, INDIA	B42288670
12	10343181	27/03/2014 *	160,000,000.00	DCB BANK LIMITED	601 & 602, Peninsula Business Park, 6th floor,, T  ower A, Senapati Bapat Marg, Lower Parel,, Mumbai,  Maharashtra - 400013, INDIA	C06620165
13	10264244	19/09/2014 *	400,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Guj  arat - 390015, INDIA	C21686076
14	10253083	17/02/2014 *	215,000,000.00	DBS BANK LTD.	KOLKATA BRANCH,, 4A, NANDALAL BASU SARANI, KOLKAT  A, West Bengal - 700071, INDIA	B98569767
15	10251226	05/07/2013 *	770,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Guj  arat - 390015, INDIA	B80872476
16	10238693	13/12/2013 *	100,000,000.00	Standard Chartered Bank	19, NETAJI SUBHAS ROAD, KOLKATA, West Bengal - 700  001, INDIA	B95615068
17	10238928	28/07/2014 *	400,000,000.00	STANDARD CHARTERED BANK	19, NETAJI SUBHAS ROAD, KOLKATA, West Bengal - 700  001, INDIA	C13811716
18	10197055	31/07/2013 *	150,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, Floor 21, World Trade Centre  Complex, Cuffe Parade, Mumbai, Maharashtra - 4000  05, INDIA	B82756974
19	10161758	14/02/2014 *	520,000,000.00	IDBI Bank Limited	Kolkata Main Branch, IDBI House, 44 Shakespeare S  arani, Kolkata, West Bengal - 700017, INDIA	B97695183
20	10150671	26/04/2014 *	620,000,000.00	IDBI Bank Limited	Kolkata Main Branch,, IDBI House, 44 Shakespeare  Sarani, Kolkata, West Bengal - 700017, INDIA	C07316151
21	90252346	14/03/2014 *	2,122,600,000.00	STATE BANK OF INDIA	Commercial Branch, Jamshedpur, Pratap Tower, Bist  upur, Jamshedpur, Jharkhand - 831001, INDIA	C00438523

* Date of charge modification

CONTINGENT LIABILITIES

	31.03.2014
(a) Claims against the Company not acknowledged as debt
(i) Electricity charges demand of Jharkhand State Electricity Board. (Appeal pending before High Court, Jharkhand)	4.524
(ii) Demand from Jharkhand State Electricity Board on account of disconnec􀆟on of line at Plant I (Appeal pending before Dy. Commissioner, Sariekela)	-
(iii) Demand for Income Tax for the AY 2007-08 (Appeal pending before the Commissioner of Income Tax (Appeals), Kolkata)	0.803
(iv) Demand for Income Tax for the AY 2008-09 (Appeal pending before the Commissioner of Income Tax (Appeals), Kolkata)	0.396
(v) Demand for Service Tax for the FY 2004-05, 2005-06, 2006-07 (upto July 2006) (Appeal pending before the Excise & Service Tax Appellate Tribunal, Kolkata)	3.598
(vi) Demand for Sales Tax for the FY 2009-10 (Appeal pending before the The Joint Commissioner of Sales Tax, Kolkata)	-
(vii) Demand for sales Tax for Nov, 2012 for wrong availment of Input tax credit (Appeal pending before Joint Commissioner of Commercial Taxes (Appeals), Jamshedpur)	-
(b) Bills discounted with Banks	-
(c) Bank Guarantee	56.763
(d) Custom duty on Capital goods imported under EPCG Scheme / Advance Licence, against which export obliga􀆟on of ` 37,294.89 Lacs (Previous year Rs.1 252.047 Millions) is to be fulfiled	516.927
(e) Corporate guarantee given to SBI, Commercial Branch, Jamshedpur, on behalf of Globe Forex & Travels Ltd.	100.000

FINANCIAL AND PERFORMANCE REVIEW

• Net Sales increased by 6.35 percent from Rs. 4038.970 Millions in 2012-13 to Rs. 4295.278 Millions in 2013-14.

• EBIDTA decreased by 4.68 percent from Rs. 629.090 Millions in 2012-13 to Rs. 599.647 Millions in 2013-14.

• PAT decreased by 23.36 percent from Rs. 110.288 Millions in 2012-13 to Rs. 84.525 Millions in 2013-14

With the onset of the slowing industrial growth and weakening investment sentiment across sectors, the strong growth phase of the domestic Commercial Vehicle (CV) industry came to standing halt in 2013-14.

Medium & Heavy Commercial Vehicles (M&HCV) segment bore the brunt of slowing industrial activity with weak investment Sentiment and the impact of significant fleet capacity addition over the past three years, especially in the heavy duty categories of the trucking market.

The cumulative production of CV fell from 832649 vehicles in 2012-13 to 698864 vehicles in 2013-14 registering a fall of around 16.07%.

However, the production of M&HCVs segment registered a de-growth at 21.04 percent during the year 2013-14 and Light Commercial Vehicles registered a de-growth of 13.54 percent

The overall domestic sales of the CV segment registered a de-growth from 793211 vehicles in 2012-13 to 632738 vehicles in 2013-14 registering a de-growth of 20.23 percent. The M&HCVs segment registered a sharp downfall of 25.33 percent during the year 2013-14 and light commercial vehicles registered a de-growth of 17.62 percent.

In spite of the sluggish scenario of the CV segment the Company has been able to register and increase the net sales.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian Forging Industry has always been a major growth driver of the Indian manufacturing sector and is one of the important industries for the success of automobile, power sector and general engineering in the country. The products range include rough forgings and/or machined parts like Crankshafttis, Connecting Rods, Camshafts, Shitted Fork, Steering Components, Crown Propeller Shat s, Gear Box Components, Crown Wheel and Pinions, Front Axle Beams, Rear Axle Shats, Earth Moving Link, Railway Tyres, Flanges/Pipe Fittings, Quality standards in the industry are in compliance with the applicable quality standards. The impact and changes in the Indian automobile industry is directly proportional to the Indian forging industry, so forging industry is option referred to as the backbone of the automobile industry. While the automotive industry is the main customer for forgings, the industry’s continuous eff orts in upgrading technologies and diversifying product range have enabled it to expand its base of customers to foreign markets.

Global OEMs and Tier-1 fi rms have started appreciating the advantages of India’s open market economy, transparent and liberal policies, its engineering and manufacturing skills as well as its ability to handle global business. India holds significant potential because of its low-cost manufacturing advantage and the opportunity for sales-volume growth off ered by its domestic market over the next decade. Keeping this in view, the market potential continues to grow for the auto component sector. Within the auto sector, commercial vehicles remain the mainstay for the forging industry. And going further, newer generation cars will require better quality forgings. The country’s Rs. 250000.000 Millions forging industry is under stress due to slowdown in the automotive sector and increasing input costs. In addition, the sector is dependent on the automotive business which contributes to about 70 percent of total business. The Industrial Valves etc.

The forging industry, which is a major supplier to the auto companies and a critical industry that generates employment, has been continuously plagued with incessantly rising industrial fuel and steel prices resulting in rising input costs and shrinking margins.

Based on the installed production capacity and annual sales turnover of these forging units, they were classified into five categories namely very large, large, medium, small and very small units. Million tonnes a year and achieved capacity utility on of around 2.8 million tonnes. In fact, this could have gone up but for the overall slowdown. The industry players are caught between its suppliers, who are increasing costs and original equipment suppliers (including automotive sector players), who want to keep tight control on costs ci􀆟 ng slowdown.

The demand for multi -axle tractor trailers is picking up and transporter enquiries are also improving. With the Supreme Court letting the ban on mining in Karnataka and Goa, the tempo can only build up since the mining ban was a huge drag on commercial vehicle sales. The commercial vehicle industry has always been linked to the country’s industrial activities and the overall GDP. Forging industry is a basic industry and such industries tend to grow in a country in relation to the rate of growth of its GDP. As far as India is concerned, they expect othere GDP to continue to grow and therefore, the basic industries will grow and so will the industry.

PERFORMANCE SCENARIO

The year 2013-2014 was not a very good year for the Industry as there was a poor demand for the vehicles and also there was a decrease in production trends during the year as compared to the last year.

With the onset of the slowing industrial growth and weakening investment sentiment across sectors, the strong growth phase of the domestic commercial vehicle industry came to standing halt since the second half of 2011-12.

M&HCV segment bore the brunt of slowing industrial activity with weak investment sentiment and the impact of significant fleet capacity addition over the past three years, especially in the heavy-duty categories of the trucking market.

The cumulative automobile production data from April 2013-March 2014 showed a growth of only 4.04 percent over April 2012-March 2013.

In 2013-2014, production of passenger vehicles segment fell by 4.90 percent. The commercial vehicles and three wheelers segment saw a decline of 16.07 percent and 1.15 percent respectively. However, the production of the two wheelers segment registered a growth of 7.21 percent this year.

DOMESTIC SALES

Passenger Vehicles segment registered a decline of 6.05 percent during 2013-2014 as compared to the last year. Passenger Cars segment declined by 4.65 percent during 2013-2014. In 2013-2014 sales of utility vehicles and vans declined by 5.01 percent and 19.58 percent respectively.

The overall domes􀆟c sales of the commercial vehicles segment registered a decrease from 7,93,211 vehicles to 6,32,738 vehicles registering a decline of 20.23 percent during 2013-2014 as compared to the same period last year. The medium & heavy commercial Vehicles (M&HCVs) segment registered a sharp downfall of 25.33 percent during the year 2013-2014 and light commercial vehicles registered a decline of 17.62 percent.

The sale of three wheelers sales fell by 10.90 percent in 2013-2014 but two wheelers sales managed to register a growth of 7.31 percent during 2013-2014.

OUTLOOK

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

While the long term fundamentals of the Indian economy remain robust, the sluggish global environment has impacted sentiments in the domestic market in the short term. But it is expected to be only a temporary phenomenon and prospects for 2013-14 look better than last year. Growth in sales would be driven by the expected improvement in macro conditions on the domestic front, moderation in interest rates and revival in consumer confidence, mainly attire the initial two quarters. The future remains optimistic as factors such as increasing last-mile connectivity, implementation of Goods and Services Taxes, re-opening of projects in construction, infrastructure and mining sectors and reduced logistics costs will continue to be strong growth drivers for the Industry. It is believed that (a) the gradual traction in market share from railways, (b) changing landscape of the logistics industry towards an organized one and (c) stricter implementation of emission & anti -overloading norms would continue to support demand for commercial vehicles.

However, a meaningful recovery in M&HCV volumes remains dependent on pick-up in industry activity, investment cycle and infrastructure and mining related activities.

THE VISION 2020 OF RAILWAYS

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

In the Interim Railway Budget for the year 2014-15 the government has tabled significant programs as mentioned below:

· Introduction of new 17 premium trains, 38 Express trains, 10 passenger trains, 4 MEMU and 3 DEMU.

· Introduction of more high speed trains.

· Railways exploring low cost option of 160-200 kmph

· Speed trains on select routes.

· Introduction of AC EMU in Mumbai in July.

· Allowing Foreign Direct Investment (FDI) in railways is under consideration - Surveys for 19 new lines and5 doubling of tracks.

· Meghalaya and Arunachal Pradesh to be brought on railway map.

· Three new factories - Rail Wheel Plant in District Chhapra, Bihar; Rail Coach Factory at Rae Bareli in Uttar Pradesh; and Diesel Component Factory at Dankuni, West Bengal, have become functional and

· Commenced production during 2013-14.

PART – I STATEMENT OF STANDALONE AUDITED FINANCIAL RESULT FOR THE QUARTER ENDED

30^TH JUNE, 2014

(Rs. In Millions)

Particulars	Quarter –ended
	30.06.2014
	Unaudited
Income from Operations
Gross Sales
Domestic	978.304
Export	256.960
	1235.264
Less : Excise Duty	106.582
	1128.682
Other Operating Revenues	103.202
Total Income from Operations (Net)	1231.884
Expenses
Consumption of Raw Materials	722.841
Changes in inventories of Finished Goods, Work in Progress and Stock-in-Trade	(94.402)
Employee Benefit Expenses	89.075
Power and Fuel	133.949
Depreciation and Amortization	97.982
Other Expenses	201.768
Total	1121.213
Profit/ (Loss) from Operations before other Income and Finance Cost	110.671
Other income	39.102
Profit/ (Loss) from Ordinary Activities before Finance Cost	149.773
Finance Costs	64.227
Profit/ (Loss) from ordinary Activities after Finance Cost and before tax	85.546
Tax Expenses	26.519
Net Profit/ (Loss) from Ordinary Activities After Tax	59.028
Paid up Equity Share Capital (Face value of Rs. 10/- each)	260.994
Reserves excluding Revaluation Reserve
Earning per shares of Rs. 10/- each
Basic	2.26
Diluted (not annualized)	2.26

PART – II SELECT INFORMATION FOR THE QUARTER ENDED 30^TH JUNE, 2014

Particulars	Quarter –ended
	30.06.2014
Public Shareholding
-Number of Shares	14281277
-Percentage of Shareholding	54.72
Promoter and Promoter Group Shareholding
Pledged / Encumbered
-Number of shares	-
-Percentage of shares (as a % of the total shareholding of promoter and promoter group)	-
-Percentage of shares (as a % of the total share capital of the company)	-
Non- encumbered
-Number of shares	11818163
-Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00
-Percentage of shares (as a % of the total share capital of the company)	45.28

Particulars	3 months ended 30.06.2014
Investor Complaint
Pending at the beginning of the quarter	Nil
Received during the quarter	1
disposed off during the quarter	1
Remaining unresolved at the end of the quarter	Nil

NOTE:

1. The above Unaudited Financial Results as reviewed by the Audit Committee were approved by the Board of Directors at its meeting held on 14^th August 2013. The Statutory Auditors has conducted Limited Review of the above Financial Results.

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

3. The Company has paid a managerial remuneration of Rs. 33.829 Millions and Rs. 35.448 Millions during the financial year 2012-13 and 2013-14.Out of which an amount of Rs. 12.048 Millions and Rs. 19.172 Millions is in excess of the limits as laid down in the section 309(3) read with schedule XIII of the Companies Act, 1956 for the financial year 2012-13 and 2013-14 respectively. Since the payment of the remuneration in excess of the limits requires approval of the Central Government the Company has made an application to the Central Government and the approval is awaited.

4. Pursuant to Companies Act 2013 the company has revised depreciation rates on fixed assets w.e.f 1st April, 2014 as per the useful lifespecified in Schedule II of the Companies Act, 2013 except in few cases where the useful life considered by the management is more than life prescribed under Schedule II, based on internal and external technical evaluation. Due to this depreciation charge for the Quarter ended 30th June, 2014 is lower by Rs. 10.030 Millions. Further the Company has adjusted Rs. 1.745 Millions (net of deferred tax of Rs.0.889 Million) to opening balance of retained earnings based on transitional provisions as per Note 7 (b) of the Schedule II.

5.

6. The figures for the quarter ended 31st March 2014 are the balancing figures between audited figures in respect of the full financial year ended 31st March 2014 and the unaudited published year to date figures upto 31st December 2013, being the end of the third quarter of the respective financial years, which were subjected to a limited review.

7.

8. The Balance amount of Rs. 38.052 Millions relating to the preferential issue which was lying in the bank account of the Company as on 31st March, 2014 has been utilised for financing the capital expenditure in respect of the project.

9. The Company has started Commercial Production of the 3150 ton pressline and 4500 ton Pressline w.e.f 21st July, 2014 which was part of the Project undertaken by the Company. The implmentation of the balance part of the Project is as per schedule.

10.

11. Other Income include profit of Rs. 36.138 Millions on sale of shares held by the Ramkrishna Employee Welfare Trust.

12. Figures for the previous periods have been regrouped, wherever necessary, to conform to the figures of the current period.

13.

FIXED ASSETS

· Land

· Factory Shed and Building

· Office Building

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Computer Hardware

· Office Equipments

· Air Condition Machine

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.35
UK Pound	1	Rs.98.93
Euro	1	Rs.77.92

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	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		50

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.