MIRA INFORM REPORT

Report Date :

05.09.2014

IDENTIFICATION DETAILS

Name :	HINDUSTAN DORR OLIVER LIMITED
Registered Office :	Dorr-Oliver House, Link Road, Chakala, Andheri (East), Mumbai – 400099, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	26.07.1974
Com. Reg. No.:	11-017644
Capital Investment / Paid-up Capital :	Rs.144.010 millions
CIN No.: [Company Identification No.]	L74210MH1974PLC017644
TAN No.: [Tax Deduction & Collection Account No.]	MUMH04336D CHEH00162B
PAN No.: [Permanent Account No.]	AAACH0964P
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of providing Engineering and Turnkey solutions, technology and EPC installations in liquid solid separation applications in various industry segments like mineral processing and beneficiation, pulp and paper processing, fertilizer and chemicals and environmental management.
No. of Employees :	530 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Exist
Comments :	Subject is an established company having a moderate track record. There is a huge loss recorded by the company during the year 2014. The reserve of the company is deteriorating and external borrowing short term seems to be increasing over a year which affects the liquidity position. Rating also takes into consideration delay in debt servicing due on letter of credit and vendor’s bill of discounting. Business is active. Payments are reported to be slow and delayed. The company can be considered for business dealing on a safe and secured 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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long Term Rating: D
Rating Explanation	Lowest credit quality and very low prospects of recovery.
Date	29.10.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name 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 :	Ms. Veena Patil
Designation :	Deputy Manager
Contact No.:	91-22-28359400

LOCATIONS

Registered Office/ Head Office :	Dorr-Oliver House, Link Road, Chakala, Andheri (East), Mumbai – 400099, Maharashtra, India
Tel. No.:	91-22-28325541/ 28326416/ 28326417/ 28326418/ 28359400
Fax No.:	91-22-28365659
E-Mail :	pardha_cs@ivrinfra.com marketing@hdo.in hdoho@hdo.in pragya@hdo.in invcomplaint@hdo.in priyav@hdo.in
Website :	www.hdo.in
Factory :	5/1/2, G.I.D.C. Vatva, Near Railway Crossing, Ahmadabad – 382445, Gujarat, India
Tel. No.:	91-79-25830591/4
Fax No.:	91-79-25833286
E-Mail :	hdoahmedabad@hdo.in
Regional Office :	Located at: · Kolkata · Chennai · New Delhi

DIRECTORS

As on 31.03.2014

Name :	Mr. Prabhakar Ram Tripathi
Designation :	Chairman
Date of Birth :	24.06.1943
Qualification :	B.Sc. (Hons)
Expertise in specific functional areas :	Mining Engineering
Date of Appointment :	29.10.2005
Other Directorship :	· IVRCL Limited HDO Technologiess Limited Premier Explosives Limited Sarda Energy and Minerals Limited Visa Steel Limited Visa Bao Limited Era Infrastructure (India) Limited VISA SunCoke Limited Hindustan Dorr Oliver Limited
Name :	Mr. E. Sundhir Reddy
Designation :	Vice Chairman
Date of Birth :	13.04.1960
Qualification :	B.Com
Expertise in specific functional areas :	Extensive experience in construction and engineering business
Date of Appointment :	08.09.2005
Other Directorship :	· IVRCL Limited Eragam Holdings Limited IVRCL Megamalls Limited
Name :	Mr. S.C. Sekaran
Designation :	Executive Director
Name :	Mr. R. Balarami Reddy
Designation :	Non-Executive Director
Name :	Mr. M.L. Majumdar $
Designation :	Non-Executive Director
Name :	Mr. Shiv Dayal Kapoor #
Designation :	Non-Executive Director

($ Resigned from the Board with effect from August 13, 2014)

(# Resigned from the Board with effect from August 16, 2014)

KEY EXECUTIVES

Name :	A.S. Pradha Saradhi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	39804430	55.28
Sub Total	39804430	55.28
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	39804430	55.28
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5872500	8.16
Foreign Institutional Investors	2591057	3.60
Sub Total	8463557	11.75
(2) Non-Institutions
Bodies Corporate	4194484	5.83
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	16173232	22.46
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2442804	3.39
Any Others (Specify)	927301	1.29
Non Resident Indians	729551	1.01
Trusts	3720	0.01
Directors & their Relatives & Friends	130700	0.18
Clearing Members	63330	0.09
Sub Total	23737821	32.97
Total Public shareholding (B)	32201378	44.72
Total (A)+(B)	72005808	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)	72005808	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of providing Engineering and Turnkey solutions, technology and EPC installations in liquid solid separation applications in various industry segments like mineral processing and beneficiation, pulp and paper processing, fertilizer and chemicals and environmental management.

Products :

Item Code No. (ITC Code)	Product Description
84391000	Machinery for Making Pulp of Fabrous Cellulosic Material
84198904	Waste Water Treatment Plant
84198908	Mixing and Homogenizing Equipment for Chemical Industries

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

No. of Employees :

530 (Approximately)

Bankers :

· Bank of India

Andhra Bank

ICICI Bank

Standard Chartered Bank

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions) (12 Months)	31.03.2013 (Rs. In Millions) (9 Months)
LONG TERM BORROWINGS
From banks
External commercial borrowing	601.000	815.840
Working capital term loan	1696.390	1528.720
Funded interest term loan	44.520	48.940
SHORT TERM BORROWINGS
Working capital loan	4106.150	2275.140
Total	6448.060	4668.640

NOTE

LONG TERM BORROWINGS

During the year, Andhra Bank (consortium partner) vide their letter dated July 20, 2013 (.sanction/restructuring of working capital limits.) has approved the Company’s financial restructuring package in respect of credit facilities effective from April 01, 2013. As per the restructuring package, a part of the debts outstanding in respect of cash credit facilities aggregating to Rs. 294.660 Millionss and Rs. 3.650 Millionss have been converted into working capital term loan and funded interest term loan (i.e. WCTL and FITL) respectively.

Nature of security

a. External commercial borrowings is secured by first charge over the land and builiding situated at Mumbai (the Company’s Corporate office) along with other assets of the Company with current value not less than 1.25x of the facility amount. Borrowing is further secured by first charge over the existing fixed assets and current assets of DavyMarkham Limited, UK {a wholly owned subsidiary of HDO (UK) Limited (a wholly owned foreign subsidiary of the Company)}

b. Working capital term loan from banks are secured by hypothecation of entire stocks, book debts, outstanding money receivable, claims and bills (both present and future). The loan is further secured by fixed assets owned by wholly owned subsidiary company situated at Vatva, Ahmedabad (Gujarat), residual charge over building at Andheri, Mumbai and flats situated in Mumbai and flat owned by wholly owned subsidiary company situated at Vatva, Ahmedabad (Gujarat). The facility is further secured by corporate gaurantee of the holding Company and pledge of 29.38 percent shares of the Company held by IVRCL Limited (holding Company).The facility carries interest @11percent p.a.

Terms of repayment

a. External commercial borrowings:- Repayable in sixteen equal quarterly installments with the first installment due on April 17, 2013 (i.e. at the end of fifteenth month from the date of disbursement) and ending on January 17, 2017, three months USD LIBOR as prevailing at the start of every interest period plus margin (300 bps) payable in arrears at the end of every interest period net of withholding tax or deductions, if any.

b. Working capital term loan:- Repayable in twenty four quarterly installments after moratorium period, of nine months (in case of Andhra Bank) and and twelve months (in case of Bank of India), commencing from April 01, 2013 (in case of Andhra Bank) and December 31, 2012 (in case of Bank of India) with the first installment due on March 2014 and ending on December 2019.

c. Funded interest term loan:- Repayable in Ten equal quarterly installments after moratorium period, of nine months (in case of Andhra Bank) and twelve months (in case of Bank of India), commencing from April 01, 2013 (in case of Andhra Bank) and December 31, 2012 (in case of Bank of India) with the first installment due on March 2014 and ending on June 2016.

Default in repayment of dues to banks

Delay in repayment of working capital term loan from Andhra bank and Bank of India aggregating to Rs. 4.380 Millions and Rs. 23.280 Millions respectively and funded interest term loans from Andhra bank aggregating to Rs. 0.810 Millions and from Bank of India aggregating to Rs. 8.540 Millions which were due in the month of March 2014, is by one day as at March 31, 2014.

Quarterly installments of External commercial borrowings aggregating to Rs. 225.370 Millions {i.e. quarterly installement of Rs. 75.120 Millions each (i.e. USD 1.25 Millions each)} falling due on 17^th of July 2013, October 2013 and January 2014 were unpaid as at March 31, 2014.

Quarterly interest on External commercial borrowings aggregating to Rs. 54.930 Millions {i.e. quarterly interest of Rs. 18.31 Millions each (i.e. USD 0.30 Millions each)} falling due on 17^th of July 2013, October 2013 and January 2014 were unpaid as at March 31, 2014.

SHORT TERM BORROWINGS

During the year Andhra Bank (Consortium partner) vide their letter dated July 20, 2013 (.sanction/restructuring of working capital limits.) has approved the Company.s financial restructuring package in respect of credit facilities effective from April 01, 2013. Pursuant to .sanction/restructuring of working capital limits., fund based and non fund based credit facilities aggregating to Rs. 180 Millions and Rs. 772 Millions respectively, have been carved out from the existing sanctioned limits of the company and accordingly the same stands vested with wholly owned subsidiary company

Nature of security

Consortium of Bank of India and Andhra Bank

Working capital loan from banks are secured by hypothecation of entire stocks, book debts, outstanding money receivable, claims and bills (both present and future), fixed assets owned by wholly owned subsidiary company situated at Vatva, Ahmedabad (Gujarat), residual charge over building at Andheri, Mumbai and flats situated in Mumbai and flat owned by wholly owned subsidiary company situated at Vatva, Ahmedabad (Gujarat). The facility is further secured by corporate gaurantee of the holding Company and pledge of 29.38 percent shares of the Company held by IVRCL Limited (holding Company).The facility carries interest @11percent to @13 percent p.a.

ICICI Bank

Working capital loan from banks are secured by first and exclusive charge on all the current assets (including receivables) and movable fixed assets related to OPaL project and second paripassu charge on factory land and building owned by wholly owned subsidiary company situated at Vatva, Ahmedabad (Gujarat), and building at Andheri, Mumbai and flats situated in Mumbai and flat owned by wholly owned subsidiary company situated at Vatva, Ahmedabad (Gujarat). The facility carries interest of 13 percent.

Dafault in repayment of dues to banks

Rs. 17.340 milion and Rs. 46.390 Millions in respect of working capital loan from Bank of India and Andhra Bank were overdrawn on March 12, 2014 and March 26, 2014 which become Rs. 96.560 Millions and Rs. 38.030 Millions as at March 31, 2014 i.e. continuous overdrawn upto twenty days and six days respectively.

Banking Relations :	--
Auditors :
Name :	Chaturvedi and Partners Chartered Accountants
Address :	212A, Chiranjeev Towers, 43, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-46654665
Fax No.:	91-11-46654655
E-mail :	delhi@cahturvedica.com
Internal Auditors :
Name :	V.C.G. and Company Chartered Accountants
Address :	203, Kushal Bazar, 32-33, Nehru Place, New Delhi – 110019, India
Solicitors and Advocates :	· Kanga and Company Crawford Bayley and Company Little and Company
Holding Company :	IVRCL Limited
Subsidiary Companies. (The ownership, directly or indirectly through subsidiaries) :	· HDO Technologies Limited HDO (UK) Limited - Foreign Company DavyMarkham Limited, UK (wos of HDO (UK) Limited) DavyMarkham India Private Limited HDO Zambia Limited - Foreign Company
Fellow subsidiaries :	· IVRCL PSC Pipes Private Limited Samatteri Developers Private Limited IVR Enviro Projects Private Limited Annupampattu Developers Private Limited ChennaiWater Desalination Limited Tirumani Developers Private Limited Salem Tollways Limited Ilavampedu Developers Private Limited Kumarapalyam Tollways Limited Gajuwaka Developers Private Limited IVRCL Steel Construction and Services Limited Chodavaram Developers Private Limited Jalandhar Amritsar Tollways Limited Simhachalam Prime Developers Private Limited IVRCL Indore Gujarat Tollways Limited Siripuram Developers Private Limited IVRCL Chengapalli Tollways Limited Bibinagar Developers Private Limited IVRCL Patalaganga Truck Terminals Pvt. Limited 43 IVR Prime Developers (Erode) Private Limited IVRCL Goa Tollways Limited IVR Prime Developers (Guntur) Private Limited IVRCL Cadagua Hogenakkal Water Treatment Company Private Limited IVR Prime Developers (Araku) Private Limited Absorption Aircon Engineer Private Limited Alkor Petroo Limited IVR Vaanaprastha Private Limited IVRCL Building Products Limited 48 IVR PUDL Resorts & Clubs Private Limited IVRCL Chandrapur Tollways Limited IVRCL Solar Energy Private Limited Sapthashva Solar Limited IVR Prime Developers (Amalapuram) Private Limited RIHIMDevelopers Private Limited IVR Prime Developers (Red Hills) Private Limited IVRCL TLT Private Limited IVR Prime Developers (Tuni) Private Limited IVRCL Raipur-Bilaspur Tollways Limited IVR Prime Developers (Bobbilli) Private Limited IVRCL Narnual Bhiwani Tollways Limited IVR Prime Developers (Bhimavaram) Private Limited IVR Hotels and Resorts Limited IVR Prime Developers (Adayar) Private Limited SPB Developers Private Limited IVR Prime Developers (Egmore ) Private Limited IVRCLMulti-level Car Parking Private Limited Geo IVRCL Engineering Limited IVRCL Lanka (Private) Limited - Foreign Company Duvvda Developers Private Limited First STP Private Limited Kunnam Developers Private Limited IVRCL Gundugolanu-Rajahmundry Tollways Limited Vedurwada Developers Private Limited IVRCL Patiala Bathinda Tollways Limited Rudravaram Developers Private Limited IVR Prime Developers (Tambram) Private Limited Geo Prime Developers Private Limited IVR Prime Developers (Palakkad) Private Limited Theata Developers Private Limited IVR Prime Developers (Guindy) Private Limited Kasibugga Developers Private Limited IVRCL Mega Malls Limited Vijayawada Developers Private Limited Agaram Developers Private Limited Eluru Developers Private Limited
Companies under common control :	· Indus Palm Hotels and Resorts Limited S.V. Equities Limited Palladium Infrastructures and Projects Limited Soma Hotels and Resorts Limited Eragam Holdings Limited Eragam Finlease Limited A. P. Enercon Engineers Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.2/- each	Rs. 200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
72005808	Equity Shares	Rs.2/- each	Rs. 144.010 millions

Reconcilation of the number of shares outstanding at the beginning and at the end of the reporting year :

Particulars	As at 31st March, 2014
	No. of Shares	Amount (Rs. in millions)
Number of Equity Shares at the beginning and end of the period/year	72005808	144.010

Rights, preferences and restrictions attached to equity shares:

The Company has only one class of Equity Shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Equity shares held by holding Company:

Particulars	As at 31st March, 2014
	No. of Shares	Amount (Rs. in millions)
Equity shares are held by IVRCL Limited	39804430	79.610

Details of the shareholder holding more than 5 percent shares in the Company:

Particulars	As at 31^st March, 2014
	No. of Shares	% shareholding
IVRCL Limited, the Holding Company	39804430	55.28

Aggregate number of equity shares alloted as fully-paid up by way of bonus shares:

Particulars	As at 31^st March, 2014
	Year	Number
Equity shares were issued as fully paid bonus shares by capitalisation of General Reserve	2009-2010	36002904

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014 (12 Months)	31.03.2013 (9 Months)	30.06.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	144.010	144.010	144.010
(b) Reserves & Surplus	422.330	531.700	1741.130
(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)	566.340	675.710	1885.140
(3) Non-Current Liabilities
(a) long-term borrowings	2341.910	2393.500	1046.810
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	10.290	11.130	10.630
Total Non-current Liabilities (3)	2352.200	2404.630	1057.440
(4) Current Liabilities
(a) Short term borrowings	4106.150	2275.140	2213.550
(b) Trade payables	3621.090	4257.700	4947.170
(c) Other current liabilities	1911.800	1873.750	1178.800
(d) Short-term provisions	7.290	6.180	8.290
Total Current Liabilities (4)	9646.330	8412.770	8347.810
TOTAL	12564.870	11493.110	11290.390
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1119.180	223.590	238.850
(ii) Intangible Assets	9.250	17.120	19.150
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1628.170	1390.690	1390.690
(c) Deferred tax assets (net)	1099.070	739.810	151.650
(d) Long-term Loan and Advances	1618.440	1436.810	1471.160
(e) Other Non-current assets	2035.630	2217.070	2374.000
Total Non-Current Assets	7509.740	6025.090	5645.500
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	78.790	26.010	25.800
(c) Trade receivables	1732.190	1928.560	2450.490
(d) Cash and cash equivalents	85.200	29.190	38.410
(e) Short-term loans and advances	1207.270	1561.550	1146.370
(f) Other current assets	1951.680	1922.710	1983.820
Total Current Assets	5055.130	5468.020	5644.890
TOTAL	12564.870	11493.110	11290.390

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014 (12 Months)	31.03.2013 (9 Months)	30.06.2012
	SALES
		Income	2551.990	2402.470	7187.530
		Other Income	216.220	34.920	105.520
		TOTAL (A)	2768.210	2437.390	7293.050
Less	EXPENSES
		Cost of material/ services consumed	2918.090	2472.260	6511.400
		Changes in inventories of work-in-progress	(20.630)	(0.210)	14.380
		Employee benefits expense	270.950	194.250	405.930
		Other expenses	148.380	339.830	268.450
		Exceptional items	0.000	763.050	0.000
		TOTAL (B)	3316.790	3769.180	7200.160
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(548.580)	(1331.790)	92.890
Less	FINANCIAL EXPENSES (D)		803.070	433.210	513.980
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1351.650)	(1765.000)	(421.090)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.660	20.060	41.740
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1374.310)	(1785.060)	(462.830)
Less	TAX (H)		(359.270)	(575.630)	(159.510)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(1015.040)	(1209.430)	(303.320)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(663.130)	546.300	849.620
	BALANCE CARRIED TO THE B/S		(1678.170)	(663.130)	546.300
	EARNINGS IN FOREIGN CURRENCY
		Sale of Equipment (including components and spares) on FOB basis	90.440	21.990	13.640
		Freight and insurance recoveries	0.000	0.000	0.020
		Earning in the form of advances	0.000	0.030	1.210
	TOTAL EARNINGS		90.440	22.020	14.870
	IMPORTS
		Cost of systems, equipment’s, components, spares and services	145.400	82.030	277.250
	TOTAL IMPORTS		145.400	82.030	277.250
	Earnings / (Loss) Per Share (Rs.)		(14.10)	(16.80)	(4.21)

QUARTERLY RESULTS

PARTICULARS	30.06.2014
	1^stQuarter
Net Sales	1886.300
Total Expenditure	2108.700
PBIDT (Excl OI)	(222.400)
Other Income	89.000
Operating Profit	(133.400)
Interest	251.800
Exceptional Items	0.000
PBDT	(385.200)
Depreciation	2.600
Profit Before Tax	(387.800)
Tax	1089.400
Provisions and contingencies	0.000
Profit After Tax	(1477.200)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(1477.200)

KEY RATIOS

PARTICULARS		31.03.2014 (12 Months)	31.03.2013 (9 Months)	30.06.2012
PAT / Total Income	(%)	(36.67)	(49.62)	(4.16)
Net Profit Margin (PBT/Sales)	(%)	(53.85)	(74.30)	(6.44)
Return on Total Assets (PBT/Total Assets}	(%)	(13.97)	(19.07)	(4.75)
Return on Investment (ROI) (PBT/Networth)		(2.43)	(2.64)	(0.25)
Debt Equity Ratio (Total Debt/Networth)		11.39	6.91	1.73
Current Ratio (Current Asset/Current Liability)		0.52	0.65	0.68

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	30.06.2012	31.03.2013 (9 Months)	31.03.2014 (12 Months)
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	144.010	144.010	144.010
Reserves & Surplus	1741.130	531.700	422.330
Net worth	1885.140	675.710	566.340
long-term borrowings	1046.810	2393.500	2341.910
Short term borrowings	2213.550	2275.140	4106.150
Total borrowings	3260.360	4668.640	6448.060
Debt/Equity ratio	1.730	6.909	11.385

s

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.06.2012	31.03.2013 (9 Months)	31.03.2014 (12 Months)
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7187.530	2402.470	2551.990
		(66.574)	6.224

NET PROFIT MARGIN

Net Profit Margin	30.06.2012	31.03.2013 (9 Months)	31.03.2014 (12 Months)
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7187.530	2402.470	2551.990
Profit	(303.320)	(1209.430)	(1015.040)
	(4.22%)	(50.34%)	(39.77%)

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	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS

HIGH COURT OF BOMBAY
CASE DETAILS
BENCH:- BOMBAY
PRESENTATION DATE:- 13/06/2014
STAMP NO:- ITXAL/1134/2014		FILING DATE:- 13/06/2014
PETITIONER:-	THE COMMISSIONER OF INCOME TAX -8 -		RESPONDENT:-	M/S. HINDUSTAN DORR-OLIVER LTD.
PETN.ADV:-	ARVIND PINTO
DISTRICT:-	MUMBAI
BENCH:-	SINGLE
STATUS:-	PRE-ADMISSION		CATEGORY:-	TAX APPEALS
LAST DATE:-	28/08/2014		STAGE:-	FOR REJECTION [ORIGINAL SIDE MATTERS]
LAST CORAM:-	REGISTRAR(OS)/PROTHONOTARY & SR. MASTER
ACT:-	INCOME TAX ACT, 1961
UNDER SECTION:-	260A

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10461033	20/11/2013	2,750,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390007, INDIA	B89879092
2	10362722	23/11/2012 *	850,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI,  MAHARASHTRA - 400051, INDIA	B64136195
3	10391246	15/03/2012	1,011,000,000.00	STANDARD CHARTERED BANK	TSR TOWERS, RAJ BHAVAN ROAD, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	B42719476
4	10327336	12/12/2011	250,000,000.00	BANK OF INDIA	VATVA INDUSTRIAL BRANCH, 91/21, VATVA INDUSTRIAL  ESTATE, AHMEDABAD, GUJARAT - 382445, INDIA	B29329299
5	10196747	25/08/2014 *	11,157,400,000.00	BANK OF INDIA	ANDHERI LARGE CORPORATE BRANCH, M.D.I BUILDING,  1ST FLOOR,28-S.V. ROAD, ANDHERI WEST, MUMBAI, MAHARASHTRA - 400058, INDIA	C17284670

* Date of charge modification

COMPANYOVERVIEW

The Company is engaged in the business of providing Engineering and Turnkey solutions, technology and EPC installations in liquid solid separation applications in various industry segments like mineral processing and beneficiation, pulp and paper processing, fertilizer and chemicals and environmental management.

PERFORMANCE

The Company achieved a gross turnover of Rs. 2551.990 millions for the year ended March 31, 2014 as against Rs. 2402.470 millions for the previous nine months period ended March 31, 2013. On an annualised basis, turnover for the current year ended March 31, 2014 increased by 6.22 percent as compared to the previous period.

FUTUREOUTLOOK

The negative effects of global recessionary conditions are being attenuated by various countries through huge investments in infrastructure and India is no exception in this regard. The directors are confident that the present environment of investments in infrastructure by the State and Central Governments assures growth of operations of the Company.

MANAGEMENT DISCUSSIONS AND ANALYSIS

OVERVIEW OF INDIAN ECONOMY:

The US$ 1.2 trillion investment planned for the infrastructure sector in the twelveth Five-Year Plan will go a long way in improving export performance of Indian companies and the Indian growth story, The World Bank has projected an economic growth rate of 5.70 percent in FY 15 for India, due to a more competitive exchange rate and several significant investments going forward.

India.s economy expanded at 4.70 percent in the entire 2013-2014 financial year, marking a second straight year of below 5.00 percent growth. The expansion was slower than an official estimate of 4.90 percent and higher than 4.50 percent growth a year earlier.

This was the second consecutive year of below 5.00 percent growth during the last twenty five years.

Growth was affected by poor performance in mining and manufacturing during the January 2014 to March 2014 period. The mining and quarry output was down by 0.40 percent and manufacturing output declined by 1.40 percent. However, the new government, which took charge in May 2014, has initiated various measures to attract more investments and remove bottlenecks in the infrastructure, among others, to boost growth.

As per government estimates, the Indian economy is likely to expand in the range of 5.40 to 5.90 percent during this fiscal. The higher growth projection for India comes against the backdrop of a new government coming to power with single majority for the first time in three decades. The new government.s target is to raise growth to 7-8 percent by 2017-2018 During last two years, global slowdown along with sluggish domestic economic activities, high interest rates and stubborn inflation pulled down India.s growth to 5.00 percent. After recovering in 2009-2010 and 2010-2011, GDP growth slowed down to decade.s low of 4.50 percent in 2012-2013. It picked up marginally to 4.70 percent in 2013-2014.

BUSINESS SCENARIO:

Delayed policy measures, slow-down in industrial production, persistently high interest rates and liquidity concerns continued adverse impact the investment climate in India during last two financial years. Consequently, the commitments on capital expenditure and fresh investments were deferred during last year, impacting growth prospects of businesses of the Company operating in certain sectors such as Power, Minerals and Metals, Petrochemicals and Fertilizer. The business of the company was adversely affected due to above during the last financial year too.

The business scenarios remained dismal during 2013-2014 with very few new projects were on offer with huge number of competitors. However, the future scenario is encouraging with government keen on speeding up the approval procedures. Several new projects are expected in Infrastructure, Metal & power sector. Government is keen to invest in nuclear power & already work on Kundankulam, Rawatbhata & Kakrapara atomic power project is in advance stages.

COMPANYPERFORMANCE:

The Company.s performance was adversely affected during the past financial year due to continuing sluggish business environment, and no new major orders were secured. The company has strength in Mineral & Metal sector and most of the mega projects were put on hold / delayed. In smaller EPC projects and water projects, the competition remains intense due to a large number of players with aggressive bidding strategies. The company has taken a cautious approach in bidding. HDOL in-house capabilities in technology development are complemented by tie-ups with world leaders. They provide stateof- the-art products & solutions to a large and diverse customer base. With the new Government at Centre promising .Ache Din Aayenge., the current business sentiments are encouraging; and most of the sectors like Infrastructure, Mineral, Power, Fertilizer etc. are likely to open up in near future. The company has presence in all these sectors and will be benefitted from these new opportunities in the following year.

BUSINESSPORTFOLIO:

Hindustan Dorr Oliver Limited (HDOL) is an Engineering, Procurement and Construction (EPC) Company. HDOL is proud to have participated successfully in building some of the finest projects in India as well as overseas. HDOL works as “Engineering for Sustainable Growth of the Global Community” and is committed towards contributing positively to the society at large.

HDOL undertakes complete spectrum of activities from feasibility study, design and planning of the project to its execution. A strong customer focused approach and the constant quest for top class quality have enabled HDOL to attain and sustain its position. The company’s capabilities span the entire gamut of Engineering, Procurement and Construction- Civil, mechanical, and electrical & instrumentation and its services extend to all core sector industries.

The projects, which includes several sectors like Minerals & Metals, Fertilizer & Chemicals, Water Management, Pulp & Paper and Nuclear, etc. The Company has divisions which carries high capabilities like in-house engineering, global technology tie ups, world class manufacturing facilities, highly experienced project execution team and safe work culture.

GROWTHSTRATEGIES:

HDOL are greatly simplifying global operating model by reducing excess management layers, clarifying lines of accountability and improving global team’s integration and focus. HDOL new leadership team has brought fresh thinking and significant experience in leading transformations, and is quickly improving accountability and responsiveness to customer’s needs. By rationalizing their offerings portfolio, HDOL are creating a set of repeatable, best in class offerings that reduce risk while accelerating the delivery of consistently strong results.

HDOL are reinforcing commitment to client satisfaction with new, disciplined programs to measure and take action on the feedback, and redesigned their coverage model to ensure proactive engagement with team.

POWER:

The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). The country is one of the G-20 major economies, a member of BRICS and a developing economy that is among the top twenty global traders according to the WTO. India was the nineteenth-largest merchandise and the sixth-largest services exporter in the world in 2013; it imported a total of $616.7 billion worth of merchandise and services in 2013, as the twelvethlargest merchandise and seventh-largest services importer. India’s economic growth slowed to 4.70 percent for the 2013. 2014 fiscal years, in contrast to higher economic growth rates in 2000s. IMF projects India’s GDP to grow at 5.40 percent over 2014-2015. HDOL is already executing LSTK project for NPCIL and is active in this areas.

STEEL:

India.s Steel Industry is more than a century old. Before the economic reforms of the early 1990s the Indian steel industry was a predominantly regulated one with the public sector dominating the industry. India has now emerged as the eighth largest producer of steel in the world with a production capacity of 35MT. Almost all varieties of steel is now produced in India. India has also emerged as a net exporter of steel which shows that Indian steel is being increasingly accepted in the global market. India is expected to become the world.s second-largest producer of crude steel by 2015-2016, riding on expansion plans of domestic players like Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL), NMDC and also the private large business houses. The installed capacity is expected to increase upto 142 million tons by 2018. The company is in discussion with renowned Technology providers in this field and will be able to participate in this area.

MINING AND MINERALS:

India.s mining industry was the fourth largest producer of minerals in the world by volume, and eighth largest producer by value in 2009. The government owned public sector accounted for 68 percent of mineral produced by volume, in 2011-2012. India is the largest producer of sheet mica, the third largest producer of iron ore and the fifth largest producer of bauxite in the world. India.s metal and mining industry was estimated to be $106.4bn (£68.5bn) in 2010.

HDOL is a market leader in Mineral Beneficiation in India having involved in all Alumina Refineries and also completed uranium ore processing plant for Uranium Corporation Of India Limited (UCIL) for 3000 TPD Capacity which is Asia.s largest Uranium Processing Plant and world's fourth Alkali leached plant in Kadappa, A.P. During the twelveth plan, many such plants are expected to come up where HDOL has its strong credentials.

HDOL provides myriad and comprehensive solutions for various mineral processing plants. The scope varies from equipment sales to complete production plants including erection and commissioning, always tailor-made to the customer.s need. Indepth process and industry knowledge and various process plant reference with good track record has made them a preferred partner in the industry.

They are at present executing Iron Ore Beneficiation plant of capacity 1.89 MTPA slime ore and Fines beneficiation for NMDC, Donimalai for NMDC, Donimalai. The befeficiated ore will be used to produce Pellets for steel making. Many more similar plants i.e. Fines/slimes beneficiation with Pellet Plant are expected to come in future and the company will be able to participate in these opportunities.

WATER:

India faces an unsure water future. Unless fresh policies are adopted and implemented to make water development and management sustainable, India will have neither the means to maintain the existing resources and build new infrastructure, nor the water required for its survival. The Ganges is the largest river in India. It provides water to about 40 percent of India.s population across eleven states. A number of initiatives have been undertaken to clean the river but failed to deliver desired results. After getting elected, Honorable Prime Minister of India Shri. Narendra Modi affirmed to work for cleaning the river and controlling Pollution. Subsequently, Namami Ganga project was announced by the Government in July 2014 budget. In the budget tabled in Parliament on July 10, 2014, Union Finance Minister Arun Jaitley announced an integrated Ganga development project titled Namami Ganga and allocated ì 2037 crore for this purpose. As a part of the program, Government of India ordered the shutdown of forty eight industrial units around Ganga.

They are the first water and wastewater treatment Company in India. They have over seven decades of experience in providing wide range of smart solutions for water and wastewater treatment problems.

Their clients truly benefit from their innovative and proven solutions. Their services include everything required to design, build, operate, maintain, upgrade and manage water and wastewater treatment facilities, Water Recycle & Reclamation Projects. They have established capability in executing EPC projects by integrating state of the art technologies like Sequential Batch Reactor (SBR), Membrane Bio Reactor (MBR), Reverse Osmosis (RO), Volatile Organic Carbon (VOC) Treatment, Wet Oxidation etc. The company has expertise in the field of Industrial Effluent specially Refinery effluent treatment and has to its credit many plants constructed using latest technology and 100 percent recycle plant.

OUTLOOK:

Rapid urbanization and industrialization in India is providing impetus for creation of efficient and reliable water infrastructure for supply of potable water and collection, treatment and re-use of waste water. Stringent pollution control norms and their enforcement is also a major driver for investment in effective effluent-treatment systems. Also substantial investments are envisaged in lift irrigation projects. It is encouraging to note that more than 15000 crore have been earmarked for various water supply and sewerage projects in India in 2013-2014.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
(a) Claims against the Company not acknowledged as debt	68.500	43.150
(b) Guarantees
Corporate Guarantees	133.850	133.850
Bank Guarantees	494.330	482.330
(c) Other money for which the Company is contingently liable
*Income-tax matters	33.220	26.380
*Sales-tax / WCT / VAT matters	474.830	107.890
*Excise/Service Tax matters	405.240	360.940
*Customs duty matters	0.080	0.080
NOTE * Excluding interest / penalty as may be determined / levied on the conclusion of the matters.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2014

PART I

(Rs. in Millions)

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
Particulars	Quarter Ended
	June 30, 2014 (Unaudited)
1. Income from Operations
a) Net Sales / Income from Operations (Net of excise duty)	1882.200
i) From Erection Procurement and Construction	410.200
ii) From Finished Goods	1472.000
b) Other Operating Income	4.400
Net Sales/ Income from Operations	1886.300
2. Total Expenditure	2111.300
a) (Increase) / Decrease in Inventories	8.400
b) Cost of materials/ services	473.600
c) Purchase of stock in trade	1471.600
d) Employee benefit expenses	64.700
e) Depreciation and amortisation expense	2.600
f) Other Expenses	90.400
3. Profit/ (Loss) from Operations before other income, Interest and exceptional items (1-2)	(225.000)
4. Other Income	89.000
5. Profit/ (Loss) from ordinary activities before Interest and exceptional items (3+4)	(136.000)
6. Finance costs	251.800
7. Profit/ (Loss) from ordinary activities before tax(5-6-7)	(387.800)
8. Tax Expenses	1089.400
- Deferred Tax	--
- Deferred Tax adjustments of perior years	1089.400
9. Net Profit/ (Loss) from ordinary activities after tax	(1477.200)
10. Paid up Equity Share Capital (Face Value Rs.2/- each)	144.000
11. Reserves excluding Revaluation Reserve (as per Audited balance sheet)	--
12. Earnings per share (EPS)
(a) Basic (Rs.)	(20.52)
(b) Diluted (Rs.)	(20.52)
PART II
SELECT INFORMATION FOR THE QUARTER ENDED 30^TH JUNE 2014
A. PARTICULARS OF SHAREHOLDING
1. Public Shareholding
- Number of shares	32201378
- Percentage of shareholding	44.72%
2. Promoters and Promoter Group Shareholding
(a) Pledged/ Encumbered
- Number of Shares	21155306
- Percentage of shares (as % of the total shareholding of promoter and promoter group)	53.15%
- Percentage of shares (as % of the total share capital of the company)	29.38%
(b) Non-encumbered
- Number of Shares	18649124
- Percentage of shares (as% of the total shareholding of promoter and promoter group)	46.85%
- Percentage of shares (as % of the total share capital of the company)	25.90%

Particulars		Quarter ended June 30, 2014
B	INVESTOR COMPLAINTS (Nos.)
	Pending at the beginning of the quarter	--
	Received during the quarter	3
	Disposed of during the quarter	3
	Remaining unresolved at the end of the quarter	--

UNAUDITED STANDALINE SEGMENT INFORMATION FOR THE QUARTER ENDED 30^TH JUNE, 2014

(Rs. in Millions)

Particulars	Quarter Ended
	June 30, 2014 (Unaudited)
1. Segment Revenue
I. Erection Procurement and Construction	414.300
II. Finished Goods	1472.000
Gross Turnover	1886.300
Less: Excise Duty/ Service Tax Recovered	--
Net Turnover	1886.300
2 Segment Results
I. Erection Procurement and Construction	(174.800)
II. Finished Goods	(50.200)
Total Segment Profit before Interest and Tax	(225.000)
a Interest Expenses	251.800
b Interest Income	(1.900)
c Other Un-allocable Income (Net of Expenditure)	(87.100)
Profit before Tax	(387.800)
a Provision for Current Tax	--
b Provision for Deferred Tax	--
c Deferred Tax adjustments of prior years	1089.400
Profit after tax	(1477.200)
3 CAPITAL EMPLOYED
(Segment Assets – Segment Liabilities)
I. Erection Procurement and Construction	437.900
II. Finished Goods	(51.500)
Total Capital Employed	386.400

This being first year of segment reporting as per AS-17 Segment Reporting, corresponding previous year figures in respect of Segment reporting has not been disclosed.

NOTE

1. The above unaudited Financial results were reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on August 11, 2014.

2. Deferred Tax adjustment of prior years relates to Deferred Tax Assets on Unabsorbed Losses, which were qualified by the Statutory Auditors in their Independent auditors' report for the nine months period ended March 31, 2013 and financial year ended March 31,2014. National Stock Exchange of India Limited vide letter dated June 19, 2014 has directed the Company to rectify the qualification raised by the Statutory Auditors. Accordingly, deferred assets on such losses has been charged In the accounts during the quarter ended June 30, 2014.

3. The statutory auditors have qualified their opinion in their independent Auditor's Report as at March 31, 2014 and Independent Review Report for the quarter ended June 30, 2014, in respect of following matters:

a. The accumulated losses of the Company as at March 31, 2014 have eroded its networth. The management of the Company is confident of improvement in the Company's future operations and the financial statements have been prepared on going concern basis. The appropriateness of assumption of going concern is dependent upon improvement of the Company's future operations and ability to raise requisite finance/generate cash flows in future to meet its obligations, including financial support to its subsidiaries.

b. Trade and other receivable as at June 30, 2014, aggregating to Rs. 4,977 lacs (previous year 3,600 lacs) and Rs. 1,553 lacs (previous year Rs. 1,553 Lacs) respectively, which have been considered good and receivable. The company has been in engagement with the parties and taking necessary steps for realization of its dues. The Company is of the view that the receivables are good and

c. In respect of investment in wholly owned subsidiaries:

i. Further investment in its Indian subsidiary having book value aggregating to Rs. 15,380 lacs (previous year Rs. 15,380 lacs) as at June 30, 2014, which were carried at fair value. Being a long term investment, no provision for diminution in value of investment is considered necessary by the management.

ii. Regarding investment in its foreign subsidiary and loans and advances receivable from such subsidiary aggregating to Rs. 1531.200 Millions (previous year Rs. 1495.900 Millions), whose accumulated losses exceeded their consolidated networth and the financial statements have been prepared on going concern basis.

4. Unbilled revenue includes Rs. 461.300 Millions (previuos year Rs. 4610.300 Millions) outstanding for considerable time and not billed to the customers. The Company is in engagement with the customers for billing and realization of the work done.

5. Certain creditors have filed winding up petitions against the Company under section 433 and 439 of the Companies Act, 1956 before Hon'ble High Court of Bombay. The company is taking necessary steps including signing of Memorandum of Understanding and/ or filing the Consent Terms In the High Court with the creditors for withdrawal of such petitions. The matter is subjudice and outcome of which is subject to the Company fulfilling the payment conditions of Memorandum of Understanding/ Consent Terms.

6. Pursuant to the Companies Act, 2013 ("the Act"), the Company has, during the quarter ended June 30, 2014, revised depreciation rates on certain fixed assets as per the useful life specified in Schedule II of the Act are as re-assessed by the Company. Due to this, based on transitional provision as per note 7 (b) of the Schedule II, an amount of Rs. 0.893 Million (net of Deferred Tax of Rs.0.398 Million) on account of assets whose useful life were already exhausted as on April 01, 2014 have been adjusted to general reserve.

7. figures for the quarter ended March 31, 2014 are the balancing figures between the audited figures of the full financial year ended March 31, 2014 and published year to date figures upto the third quarter ended at December 31, 2013.

8. Previous period figures have been regrouped / re-classified in order to confirm to the current period figures.

FIXED ASSETS

Tangible Assets

· Freehold Land

Leasehold Land

Buildings (including company owned flats)

Plant and Machinery

Office Equipment

Computers

Furniture and Fixtures

Motor Vehicles

Intangibles Assets

· Softwares

Goodwill

Technical Knowhow

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.60.45
UK Pound	1	Rs.99.46
Euro	1	Rs.79.46

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		15

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.