MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	MERCATOR LIMITED (w.e.f. 22.11.2011)
Formerly Known As :	MERCATOR LINES PRIVATE LIMITED
Registered Office :	3^rd Floor, Mittal Tower, B – Wing, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.11.1983
Com. Reg. No.:	11-031418
Capital Investment / Paid-up Capital :	Rs.244.892 Millions
CIN No.: [Company Identification No.]	L63090MH1983PLC031418
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20822E
PAN No.: [Permanent Account No.]	AAACM5007A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company has directly and/or through its subsidiaries diversified business verticals viz. Shipping (tankers and dry bulkers), Dredging, Oil and Gas (EPCIC and E & P), Coal (Mining, Procurement and Logistics).
No. of Employees :	101 (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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Company has performed well as compared to previous year. Overall financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

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	CARE
Rating	Long term bank facilities: “A”
Rating Explanation	Have adequate degree of safety and carry low credit risk.
Date	28.08.2014

Rating Agency Name	CARE
Rating	Short term bank facilities: “A1”
Rating Explanation	Have very strong degree of safety and carry lowest credit risk.
Date	28.08.2014

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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-66373333)

LOCATIONS

Registered Office :	3rd Floor, Mittal Tower, B – Wing, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-66373333 / 40373333
Fax No.:	91-22-66373333 / 40373333
E-Mail :	dalvi@mercator.in mercator@mercator.in investor@mercator.in
Website :	www.mercator.in

DIRECTORS

As on 31.03.2014

Name :	Mr. H. K. Mittal
Designation :	Executive Chairman
Date of Birth/Age :	64 Years
Qualification :	Masters from the Indian Institute of Technology (IIT)
Name :	Mr. Atul J. Agarwal
Designation :	Managing Director
Date of Birth/Age :	26.07.1958
Qualification :	Fellow Member of Institute of Chartered Accountants of India
Expertise in specific functional area :	Finance, Accounts, Taxation and Administration
Date of Appointment :	01.08.1988
Name :	Mr. Manohar Bidaye
Designation :	Independent and Non-Executive Director
Date of Birth/Age :	10.11.1963
Qualification :	Master of Commerce (M.Com) from the University of Mumbai. Degree in Law (LLB - Gen.). He is also a Senior Member of The Institute of Company Secretaries of India.
Expertise in specific functional area :	Corporate planning, strategy formulation, corporate laws and taxation, finance and other related areas
Date of Appointment :	26.05.1994
Name :	Mr. K. R. Bharat
Designation :	Independent and Non-Executive Director
Date of Birth/Age :	52 Years
Qualification :	MBA
Name :	Mr. Kapil Garg
Designation :	Non-Executive Director (upto May 29, 2014)
Date of Birth/Age :	23.06.1962
Qualification :	MBA from Indian Institute of Management
Expertise in specific functional area :	33 years vast experience in Capital Markets and various segments like Merchant Banking, Equities and Investment banking; Risk Management, research etc.
Date of Appointment :	30.07.2007
Name :	Mr. M. M. Agrawal
Designation :	Independent and Non-Executive Director
Date of Birth/Age :	04.08.1950
Qualification :	Bachelor of Engineering from Nagpur University
Expertise in specific functional area :	38 years of vast experience in Banking and Finance Industry
Date of Appointment :	12.08.2011
Name :	Mr. Gunender Kapur
Designation :	Director
Date of Birth/Age :	19.01.1961
Qualification :	Bachelor in Mechanical Engineering and MBA
Expertise in specific functional area :	Finance, Management and Administration
Date of Appointment :	13.08.2014

KEY EXECUTIVES

Name :	Mr. Prasad Patwardhan
Designation :	Chief Financial Officer
Name :	Ms. Priya Vishwanathan
Designation :	Company Secretary (upto November 18, 2013)
Name :	Ms. Amruta Sant
Designation :	Company Secretary
Date of Appointment :	12.12.2013
AUDIT COMMITTEE :
Name :	Mr. Manohar Bidaye
Designation :	Chairman
Name :	Mr. K. R. Bharat
Designation :	Member
Name :	Mr. Atul J. Agarwal
Designation :	Member
STAKEHOLDERS’ RELATIONSHIP COMMITTEE :
Name :	Mr. Manohar Bidaye
Designation :	Chairman
Name :	Mr. K. R. Bharat
Designation :	Member
Name :	Mr. Atul J. Agarwal
Designation :	Member

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
Individuals / Hindu Undivided Family	80077816	32.70
Bodies Corporate	18406250	7.52
Sub Total	98484066	40.22
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	98484066	40.22
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	77531	0.03
Financial Institutions / Banks	2048015	0.84
Central Government / State Government(s)	2500	0.00
Foreign Institutional Investors	39631403	16.18
Any Others (Specify)	0	0.00
Sub Total	41759449	17.05
(2) Non-Institutions
Bodies Corporate	17964174	7.34
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	65956929	26.93
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	14284929	5.83
Any Others (Specify)	6442526	2.63
Clearing Members	2762480	1.13
Directors & their Relatives & Friends	169250	0.07
Trusts	3536	0.00
Office Bearer	351100	0.14
Non Resident Indians	3156160	1.29
Sub Total	104648558	42.73
Total Public shareholding (B)	146408007	59.78
Total (A)+(B)	244892073	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)	244892073	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl.No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a %
1	Harishkumar Mittal	4,66,54,200	19.05
2	Archana Mittal	2,63,27,400	10.75
3	AHM Investments Private Limited	1,84,06,250	7.52
4	Atul J Agarwal	54,60,966	2.23
5	Manjuli Agarwal	5,59,000	0.23
6	Shalabh Mittal	3,61,250	0.15
7	Aayush Atul Agarwal	3,17,500	0.13
8	Arooshi Atul Agarwal	3,17,500	0.13
9	Adip Mittal	80,000	0.03
	Total	9,84,84,066	40.22

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as %
1	Lotus Global Investments Limited	14229669	5.81
2	Kotak Mahindra (International) Limited	8159363	3.33
3	Cresta Fund Limited	5650000	2.31
4	Albula Investment Fund Limited	5175644	2.11
5	LKP Finance Limited	3885862	1.59
	Total	37100538	15.15

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as %
1	Lotus Global Investments Limited	14229669	5.81
	Total	14229669	5.81

BUSINESS DETAILS

Line of Business :

The Company has directly and/or through its subsidiaries diversified business verticals viz. Shipping (tankers and dry bulkers), Dredging, Oil and Gas (EPCIC and E & P), Coal (Mining, Procurement and Logistics).

GENERAL INFORMATION

No. of Employees :

101 (Approximately)

Bankers :

· State Bank of India

ICICI Bank

Axis Bank

HDFC Bank

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Debentures	1500.000	4000.000
External Commercial Borrowings	616.023	829.437
Term loans from banks	3578.444	1988.198
SHORT TERM BORROWINGS
Loans repayable on demand Working capital facilities from scheduled banks	260.701	84.861
Total	5955.168	6902.496

NOTE

LONG TERM BORROWINGS

i) Security details

a) Debentures referred in (A) above are secured by first mortgage on specified vessels of the company on pari-passu basis with other lenders and first pari-passu charge on the specified immovable property.

b) External Commercial Borrowings referred in (B) above are secured by exclusive charge on specified vessels of the company of which Rs. 270.449 Millions (P.Y. Rs. 265.148 Millions) additionally secured by charge on loan extended to subsidiary as well as charge on cash flows of specified vessels.

c) Term Loans refered in (C) above are secured by first charge on specified vessels, on pari passu basis with other lenders and includes Rs. 1215.000 Millions (P.Y. Rs. 1305.045 Millions) additionally secured by charge on loan extended to subsidiary as well as charge on cash flows of specified vessels.

d) Foreign Currency loans included in Term loans from banks in (C) are secured by first charge Rs. 2921.306 Millions and by second charge Rs. 300.499 Millions on specified vessels of the company on pari passu basis with other lenders.

SHORT TERM BORROWINGS

Working capital facilities from Scheduled Banks are secured by first charge on all receivables and other current assets of the company on pari-passu basis and second charge on specified vessels.

Banking Relations :	--
Auditors :
Name :	CNK and Associates LLP (Formerly M/s. Contractor, Nayak and Kishnadwala) Chartered Accountants
Debenture and Security Trustees :	Axis Trustee Services Limited
Subsidiaries - Fellow/ Step down subsidiaries :	· Mercator International Pte Limited (MIPL) (Singapore) Mercator Oil and Gas Limited (MOGL) (India) Mercator Petroleum Limited (India) Oorja Resources India Private Limited (India) Mercator FPSO Private Limited (India) Mercator Offshore Holdings Pte Limited (MOHPL) (Singapore) Mercator Offshore (P) Pte Limited (Singapore) Oorja Holdings Pte.Limited (OHL) (Singapore) Mercator Lines (Singapore) Limited (MLS) (Singapore) Mercator Offshore Limited (Singapore) - Liquidated during the year with effect from April 1, 2013 Ivorene Oil Services Nigeria Limited (Singapore) Mercator Lines (Panama) Inc Chitra Prem Pte. Limited (Singapore) Oorja 1 Pte Limited (Singapore) Oorja 2 Pte Limited (Singapore) Oorja 3 Pte Limited (Singapore) Oorja Mozambique Limitada (Mozambique) MCS Holdings Pte Limited (Singapore) Oorja (Batua) Pte Limited (Singapore) PT Karya Putra Borneo (Indonesia) PT Indo Perkasa (IPK) (Indonesia) Oorja Indo Petangis Four (Indonesia) Oorja Indo Petangis Three (Indonesia) Oorja Indo KGS (Indonesia) Broadtec Mozambique Minas Limitada (Mozambique) PT Mincon Indo Resources (Indonesia) Bima Gema Permata PT (Jakarta) Nuansa Sakti Kencana PT (Jakarta) Varsha Vidya Inc (Panama) Mercator Energy Pte Limited (Singapore) Mercator Offshore Assets Holding Pte Limited (Singapore) Mercator Okwok FPU Pte Limited (Singapore) Mercator Okoro FPU Pte Limited (Singapore)
Enterprises over which Key Management Personnel exercise significant control :	· AAAM Properties Private Limited Ankur Fertilizers Private Limited AHM Investments Private Limited MHL Healthcare Limited - Formerly known as Mercator Healthcare Limited (Name changed with effect from January 1, 2014)
Enterprises over which Directors/Relative of Directors/Key Management Personnel/Relative of Key Management Personnel exercise significant influence :	· MLL Logistics Private Limited Zicom Electronic Security Systems Limited Vaitarna Marine Infrastructure Limited -Formerly known as Vaitarna Marine Infrastructure Private Limited (Name changed with effect from May 21, 2013) Rishi Holding Private Limited Baronet Properties and Investments Private Limited Coronet Properties and Investments Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
350000000	Equity Shares	Re.1/- each	Rs.350.000 Millions
20000000	Preference shares	Rs.100/- each	Rs.2000.000 Millions
	Total		Rs.2350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
244892073	Equity Shares	Re.1/- each	Rs.244.892 Millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Equity Shares	Number of Shares
Number of shares at the beginning of the year	244892073
Add: Shares issued during the	--
Number of shares at the end of the year	244892073

Terms/Rights attached to Equity shares

The company has two classes of shares referred to as equity shares having a par value of Re. 1/- and preference shares having a par value of Rs. 100/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian rupees. The dividend whenever proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferetial amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

For the period of five years immediately preceding the date as at which the balance sheet is prepared:

(i) No shares were allotted pursuant to contracts without payment being received in cash.

(ii) No bonus shares were issued.

(iii) No shares were bought back.

Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	As at March 31, 2014
Equity shares of Re. 1 each fully paid	Number of Shares	% holding
H. K. Mittal	46654200	19.05%
Archana Mittal	26327400	10.75%
AHM Investments Private Limited	18406250	7.52%
Lotus Global Investments Limited	14229669	5.81%

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	244.892	244.892	244.892
(b) Reserves & Surplus	6395.893	6454.309	8491.129
(c) Money received against share warrants	0.000	0.000	259.600
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	6640.785	6699.201	8995.621
(3) Non-Current Liabilities
(a) long-term borrowings	5694.467	6817.635	9220.571
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	111.648	73.553	467.148
(d) long-term provisions	22.091	22.881	28.588
Total Non-current Liabilities (3)	5828.206	6914.069	9716.307
(4) Current Liabilities
(a) Short term borrowings	458.101	280.981	429.694
(b) Trade payables	1060.363	790.655	886.163
(c) Other current liabilities	2904.158	5931.850	2773.714
(d) Short-term provisions	32.256	4.278	4.589
Total Current Liabilities (4)	4454.878	7007.764	4094.160
TOTAL	16923.869	20621.034	22806.088
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9234.286	6988.668	16348.293
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	5346.245	0.000
(b) Non-current Investments	26.364	35.548	42.549
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3258.424	2911.797	2886.461
(e) Other Non-current assets	132.733	3.852	0.268
Total Non-Current Assets	12651.807	15286.110	19277.571
(2) Current assets
(a) Current investments	5.000	5.000	5.000
(b) Inventories	142.191	95.573	174.089
(c) Trade receivables	1863.897	2086.607	1989.630
(d) Cash and cash equivalents	502.435	1551.332	412.400
(e) Short-term loans and advances	1750.314	1595.417	826.895
(f) Other current assets	8.225	0.995	120.503
Total Current Assets	4272.062	5334.924	3528.517
TOTAL	16923.869	20621.034	22806.088

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4970.436	5514.942	5479.768
		Other Income	272.084	253.188	726.852
		TOTAL (A)	5242.520	5768.130	6206.620
Less	EXPENSES
		Ship operating expenses	3368.981	4039.674	4335.896
		Employee benefit expenses	132.549	131.233	170.053
		Impairment of assets	0.000	811.800	0.000
		Other expenses	227.870	526.397	132.707
		TOTAL (B)	3729.400	5509.104	4638.656
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1513.120	259.026	1567.964
Less	FINANCIAL EXPENSES (D)		730.822	1326.909	1529.693
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		782.298	(1067.883)	38.271
Less/ Add	DEPRECIATION/ AMORTISATION (F)		675.173	1091.555	1189.961
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		107.125	(2159.438)	(1151.690)
Less	TAX (H)		15.012	15.000	35.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		92.113	(2174.438)	(1186.690)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(3165.933)	(991.494)	195.196
	APPROPRIATIONS
		Transfer to Tonnage Tax Reserve	15.000	0.000	0.000
		Transferred from General Reserve	(3450.000)	0.000	0.000
		Provision for Dividend	24.489	0.000	0.000
		Tax on Dividend	4.161	0.000	0.000
	BALANCE CARRIED TO THE B/S		332.530	(3165.933)	(991.494)
	EARNINGS IN FOREIGN CURRENCY
		Shipping Income	781.712	935.578	717.013
		Interest Income	52.288	17.995	160.814
		Dividend Income	21.081	17.316	0.000
		Other Income	13.100	17.080	1.932
	TOTAL EARNINGS		868.181	987.969	879.759
	IMPORTS
		Stores and Spares	128.548	153.915	71.863
		Capital Goods (including CWIP)	691.740	0.000	301.450
	TOTAL IMPORTS			153.915	373.313
	Earnings / (Loss) Per Share (Rs.)		0.38	(8.88)	(4.85)

QUARTERLY RESULTS

PARTICULARS	30.06.2014
	1^stQuarter
Net Sales	1242.200
Total Expenditure	854.300
PBIDT (Excl OI)	388.000
Other Income	32.100
Operating Profit	420.000
Interest	147.500
Exceptional Items	0.000
PBDT	272.500
Depreciation	222.900
Profit Before Tax	49.600
Tax	1.900
Provisions and contingencies	0.000
Profit After Tax	47.800
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	47.800

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.76	(37.70)	(19.12)
Net Profit Margin (PBT/Sales)	(%)	2.16	(39.16)	(21.02)
Return on Total Assets (PBT/Total Assets}	(%)	0.63	(14.17)	(5.06)
Return on Investment (ROI) (PBT/Networth)		0.02	(0.32)	(0.13)
Debt Equity Ratio (Total Debt/Networth)		0.93	1.06	1.07
Current Ratio (Current Asset/Current Liability)		0.96	0.76	0.86

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	244.892	244.892	244.892
Reserves & Surplus	8491.129	6454.309	6395.893
Money received against share warrants	259.600	0.000	0.000
Net worth	8995.621	6699.201	6640.785
long-term borrowings	9220.571	6817.635	5694.467
Short term borrowings	429.694	280.981	458.101
Total borrowings	9650.265	7098.616	6152.568
Debt/Equity ratio	1.073	1.060	0.926

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	5479.768	5514.942	4970.436
		0.642	(9.873)

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	5479.768	5514.942	4970.436
Profit	(1186.690)	(2174.438)	92.113
	(21.66%_	(39.43%)	1.85%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current Maturities of Long Term Debts
Debentures	1500.000	100.000	612.500
External commercial borrowings	300.499	265.148	236.599
Term loans from banks	858.361	347.633	1595.629
Total	2658.860	712.781	2444.728

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10490074	24/06/2014 *	1,525,600,000.00	UNIT TRUST OF INDIA INVESTMENT ADVISORY SERVICES L IMITED	UTI TOWER GN BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA	C10570521
2	10430978	22/07/2013 *	508,750,000.00	AXIS BANK LIMITED	CBB BR. AXIS HOUSE, GR. FLOOR, WADIA INTL. CENTRE, PANDURANG BUDHKAR MARG WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B80748999
3	10427018	25/03/2013	2,992,800,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, 2ND FLOOR, 'THE ARCADE', WORLD TRADE CENTRE, CUFFE PARADAE, MUMBAI, MAHARASHTRA - 400005, INDIA	B75507178
4	10333505	24/05/2012 *	1,235,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	B39897673
5	10294934	29/11/2012 *	550,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	B63069249
6	10263095	18/10/2012 *	800,000,000.00	ICICI BANK LIMITED	ICICI BANK TOWERS, BANDRA KURLA COMPLEX, MUMBAI, MAHARASHTRA - 400051, INDIA	B61852380
7	10193208	23/01/2014 *	1,000,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B95491445
8	10192071	23/01/2014 *	2,500,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARAS HTRA - 400025, INDIA	B95491312
9	10139086	21/10/2013 *	1,500,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B88348909
10	10131402	29/10/2009 *	1,125,000,000.00	BANK OF INDIA	138, ROBINSON ROAD,, #01-01, #02-01, # 03-00, THE CORPORATE OFFICE, SINGAPORE, - 068906, SINGAPORE	A73466989
11	10037014	26/09/2013 *	2,025,000,000.00	AXIS BANK LIMITED	AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILL COMPUND, PANDURANG BHUDKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B85905123
12	90229990	07/03/2011 *	200,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA	B08407660
13	90231204	16/03/2004 *	300,000,000.00	UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
14	90232550	23/01/2003 *	180,000,000.00	UTI BAK UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMB AI, MAHARASHTRA - 400005, INDIA	-
15	90231108	22/04/2004 *	120,000,000.00	UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
16	90232544	27/09/2002 *	120,000,000.00	UTI BAK UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
17	90229504	26/02/2004 *	50,000,000.00	UTI BANK LIMITED	CENTRAL OFFICE; MAKER TOWER-F, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
18	90229367	14/10/1998 *	72,200,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER; WTC COMPLEX, COLOBA, MUMBAI, MAHARASHTRA - 400005, INDIA	-
19	90226928	02/12/2011 *	1,450,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, CUFF PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B27277490
20	90229081	15/05/2004 *	5,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
21	90232485	03/02/1995	960,000.00	SYNDICATE BANK	BACKBAY RECLAMATION BRANCH, BOMBAY, MAHARASHTRA - 400020, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital facilities from scheduled banks	197.400	196.120
Total	197.400	196.120

CORPORATE INFORMATION

Subject was incorporated on November 24, 1983 as private limited company with name as Mercator Lines Private Limited. It was converted into limited company vide ROC approval dated April 12, 1984. The name was changed to Mercator Limited vide ROC approval dated November 22, 2011. The Company has directly and/or through its subsidiaries diversified business verticals viz. Shipping (tankers and dry bulkers), Dredging, Oil and Gas (EPCIC and E and P), Coal (Mining, Procurement and Logistics).

FINANCIAL HIGHLIGHTS

On a standalone basis, the income from operations for the year was Rs. 4970.000 Millions (Rs. 5510.000 Millions in the previous year). The Company has earned net profit of Rs. 90.000 Millions (Loss of Rs. 2170.000 Millions Millions in the previous year) after provision of tax of Rs. 15.000 Millions (Rs. 15.000 Millions in the previous year).

During the year, Debenture Redemption Reserve (Rs. 275.000 Millions) and Tonnage Tax Utilised Reserve (Rs. 1752.500 Millions) being no more required were transferred to General Reserve. Further, balance in General Reserve amounting Rs. 3450.000 Millions was utilised to set off the deficit in the Profit and Loss A/c of Rs. 3165.900 Millions. An amount of Rs. 15.000 Millions was transferred from Profit and Loss A/c to Tonnage Tax Reserve. After providing for Dividend and tax thereon amounting Rs. 28.700 Millions; the surplus in P and L account of Rs. 332.500 Millions was carried to Balance sheet as at year end.

OPERATIONS AND FINANCE

The Directors are pleased to report that, Mercator Petroleum Limited; a subsidiary of the Company in consortium with Oil India Limited and others has been chosen as selected candidate for 2 offshore oil blocks by the Ministry of Energy; Republic of Myanmar in the Myanmar Offshore Block Bidding Round – 2013.

The Floating Production Unit (FPU) contract is running smoothly in Nigeria. During the year, Mercator Offshore (P) Pte Limited Received certificate of Excellence from the Charterers of FPU in recognition of its safety performance resulting in 1000 operating days without lost time and injury. The Sagar Samrat Conversion project is progressing well.

In Coal segment; Mercator was able to effectively control the mining costs and through improved utilisation of resources was able to improve upon the margins in spite of a fall in coal volumes and prices due to global economic factors.

In Shipping; during the year, the Company acquired a Medium Range (MR) Tanker, which has been deployed on a 5 years contract. The Company has further diversified into the Gas Carrier Segment and acquired one Very Large Gas Carrier (VLGC) in March 2014. The total cubic capacity of the VLGC is 76,933 Cub.m. and DWT of

50,400. Both the acquisitions were part funded by foreign currency loans.

The Company has been awarded a long term contract for hiring of a Storage Tanker for a period of 1720 days commencing from April 2015. This is the third consecutive contract received by the Company from this customer. The Company proposes to refurbish its tanker for this contract, which will entail incurring of capital expenditure. In order to part finance the same, the Company has tied up a long term foreign currency facility with a tenor of 7 years.

The Company had obtained consent of the shareholders by way of special resolution through postal ballot for Issue and allotment of securities in the form of FCCB/ADR/GDR etc. up to Rs. 1000.000 Millions. Subsequent to the end of the financial year, in May, 2014, the Company has successfully concluded the FCCB issue and mobilized USD 16 million. The FCCB proceeds raised were utilised by the Company for capital expenditure.

With a view to expand its operations in the Oil and Gas space, subsequent to the end of the financial year, Mercator Energy Pte. Ltd., subsidiary company has entered into an agreement to avail a term loan facility of USD 55 million.

The Dredging division has performed well during the year. The Company has a healthy order book, including some repeat orders from existing customers.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

I. COAL

2013 was a difficult year for the global coal industry. Contrary to expectations, the downward trend in prices that began in mid-2011 continued during 2013. The reason for the price pressure of the past years was not weaker global demand and oversupply. After the shale gas revolution shook up the US and resulted in increased coal exports from North America, the real reason for the price pressure was the excessively rapid growth in the global supply of coal. Supply growth exceeded demand growth and this resulted in pressure on prices around the globe. In many countries, coal producers could not cut production because of financial pressure and debt funding.

Currently, they seem to have reached the trough in terms of prices. In the short term, they expect continued producer consolidation and have a cautiously optimistic outlook on prices with limited upside and downside risks. The reason for this cautious optimism for the long term is to be found in the unchanged global developments that will inevitably lead to significantly greater coal consumption and imports in the coming decades. The primary driver for this trend is the constantly rising electricity demand. India alone has recently announced that it will increase electricity production from about 10 GW to 25 GW within eight years.

The greatest increase in the demand for coal will be in India and China where, by 2017, power plants with approximately 210 GW will become operational. Neither of these countries can fuel these facilities with domestic resources alone; therefore, global demand will inevitably rise.

In 2003, India imported 20 MMT of thermal coal, while China exported a net total of 63 MMT. In 2012, by comparison, India imported 133 MMT (nearly seven times as much as nine years before), while China imported 233 MMT. This trend is likely to continue, however import growth is expected to be slow in China. In the next four years alone, worldwide demand for coal will increase to over 9 billion tons from the current 7.7 billion tons in 2012.

The near-term increase reflects significant increases in coal consumption by China, India, and other non-OECD countries.

The current share of coal in global power generation is over 40%. While coal consumption in absolute terms is expected to grow, its share is expected to decrease due to a shift to alternative sources of energy. The reduction is more than offset by the large developing economics, primarily in Asia, which are powered by coal and have significant coal reserves.

One of the major challenges facing the world at present is that approximately 1.2 billion people live without any access to modern energy services. Access to energy is a fundamental pre-requisite for modern life and a key tool in eradicating extreme poverty across the globe. Coal plays an important role in delivering this energy access, because it is widely available, safe, reliable and relatively low cost.

INDIA COAL MARKET SCENARIO

India’s energy basket has a mix of all the resources available, including renewables. The dominance of coal in the energy mix is expected to continue in the foreseeable future. After rising 24 MMT (28% YOY) to 110 MMT in 2011, Indian thermal coal imports have surged again in 2013 to 168 MMT. The imports remained price sensitive, but despite a weakening rupee, landed prices in India are 16% lower than a year ago.

The consumption of coal during FY 13 was 739 MMT against the supply of 571 MMT domestic coal. The demand-supply gap has been met through a coal import of 168 MMT (a growth of about 16% YOY). A large part of the coal consumption in India was for power generation.

Though India’s coal reserves have been assessed at 301.56 billion tons as on April 1, 2014, the output has been

constrained due to difficulties in land acquisition, delays in environmental clearances and the lack of rail infrastructure for coal transportation.

At present India’s coal dependence is borne out form the fact that 57% of the total installed electricity generation capacity is coal based and 67% of the capacity planned to be added during 12th Five Year Plan (2012-17) is coal based.

According to the Indian Working Group for coal and lignite in the 12th Five Year Plan, coal demand is expected to increase by 7% annually over the period 2012-17. However, recent coal shortages have increased imports, despite India having the fifth highest level of reserves in the world.

India’s demand growth remains robust and is expected to rise from 142 MMT (5.9% p.a.) in 2005-15 to 159 MMT (3.0% p.a.) in 2025-35 as the country’s industrialisation continues. By 2030, India is expected to replace China as the leading source of coal demand growth area. Coal is expected to continue to dominate India’s energy mix as compared to other energy sources with a share of over 50% by 2030.

During the 12th Five Year Plan (2012-2017), India plans to add 105,000 MW capacities. The present installed generation capacity in India is more than 216,000 MW and over 105,000 MW of new power capacity is under construction. The power generating companies are entering into long term supply agreements, especially for imported coal, for securing uninterrupted coal supply, hence the estimated domestic demand is likely to increase to 980 MMT by 2018 (an increase of 322 MMT). The projected coal production by CIL is 615 MMT by 2018 and projected demand –supply gap is about 365 MMT by 2018

II. OIL AND GAS

The primary energy demand is expected to increase by 41% between 2012 and 2035, with growth averaging at 1.5% per annum (p.a.). There is a clear long-run shift in energy growth from the OECD to the non-OECD countries. Virtually all (95%) of the projected growth is in the non-OECD segment, with energy consumption growing at 2.3% p.a. 2012-35. OECD energy consumption, by contrast, grows at just 0.2% p.a. over the whole period and is actually falling from 2030 onwards. China has emerged as the key growth contributor, but India’s contribution grows, almost matching that of China by 2035 in the final decade of the forecast.

All fuels are expected to grow, with the fastest growth seen in renewables (6.4% p.a.). Nuclear (1.9% p.a.) and hydro-electric power (1.8% p.a.) both grow more rapidly than total energy. Among fossil fuels, gas is the fastest growing (1.9% p.a.) and the only one to grow more rapidly than total energy. Oil (0.8% p.a.) shows the slowest growth, with coal (1.1% p.a.) is only slightly ahead.

Oil is expected to be the slowest growing fuel. Global liquids demand (oil, biofuels, and other liquids) nonetheless is likely to rise by around 19 Mb/d, to reach 109 Mb/d by 2035.

Demand growth comes exclusively from rapidly growing non-OECD economies. China, India and the Middle East account for nearly all of the net global increase. OECD demand has peaked and consumption is expected to decline by 8 Mb/d.

Rising supply to meet demand growth will come primarily from non-OPEC supply, which is expected to increase by 10.8 Mb/d while OPEC production is expected to expand by 7.4 Mb/d.

III. SHIPPING

WET BULK CARRIERS

The Baltic Clean Tanker Index opened at 683 points in April 2013 and closed at 610 points on March 31, 2014 remaining range bound throughout the year with lowest being at 483 in November 2013. The Baltic Dirty Tanker opened at 682 points in April 2013 and reached a high of 1344 with some spikes in January 2014. It closed at 700 points on March 31, 2014 recording a low of 577 in June 2013.

It was the usual story in the beginning of year 2013 for the owners of VLCC tankers; pressured spot rates, which was attributed to the combination of tonnage overcapacity and relatively weak demand. The weak demand was further exacerbated by seasonal refinery maintenance, particularly in the US that kept freight rates under pressure.

The freight market remained steady for most part of year 2013. The freight rates in the VLCC segment exhibited a

marked appreciation in the third quarter and achieved their peak in December 2013. The freight rates gradually softened in the fourth quarter and the year ended once again on a soft note. The activity in the tanker market during the second half of the current fiscal boosted the sentiment and the tanker owners recorded impressive gains. The average daily earnings for the large crude carriers on the Middle East-to-Asia voyage during the year averaged about USD 22000 per day.

There was good activity in the other crude oil tanker segments with rates showing an average marginal appreciation. This was as a result of the change in the trading pattern of large crude oil carriers. In the spot market the tanker freight rates remained steady to firm and reacted only to seasonal factors, and a shift in the trade pattern.

In 2013, 117 crude and product tankers were delivered that were above the DWT of 25000 MT. Consequently, the capacity of the tanker fleet grew by about 3.4% against the growth/ demand forecast of about 2.1%.

The outlook for the shipping sector in the short term is likely to remain steady and is gradually expected to improve by end- 2014. Tanker activity is likely to ease during the last quarter and the freight market is likely to give off some of its gains by the year end.

DRY BULK CARRIERS

The Baltic Dry Bulk Index opened at 896 points in April 2013, and closed at 1362 points on March 31, 2014. It reached a high of 2337 in December 2013 and low at 801 in June 2013.

For the full year, dry bulk index rose from USD 9400 per day in 2012 to USD 12800 per day for 2013, a rise of 34%. The largest increase came in the cape size sector, where average earning rose from USD 9800 per day in 2012 to USD 16000 per day in 2013, a rise of 69%.

Panamax obtained USD 9500 per day against a meagre USD 8100 the year before, still a 17% rise. For Supramax tonnage, average earnings increased less than 10% from USD 9400 to 10300 per day. The improvement in the Handymax sector was even for moderate, with daily rate rise to USD 8200 for 2013 against USD 7600 in 2012.

Dry bulk freight rates improved in 2013 from the miserable levels in 2012. Estimated tonnage demand is likely to have increased by about 9%, driven by a new record in Chinese dry bulk imports and a recovery in global grain trade in the latter part of the year. The fleet size increased slightly less than 8%. Fleet utilisation thereby rose by around 1 percentage point, calculated on a yearly average basis

The dry bulk market followed a similar pattern as the tanker market witnessed a weak first half and recorded a rebound in the second. China reduced iron ore inventories in the first half, thus increasing the need to import more in the second half. In addition, a remarkable recovery in grain shipments from the US and the Black Sea created a significant contribution to tonnage demand for medium size tonnage.

New order represented 73 million DWT and almost quadrupled from 2012. New ships of 59 million DWT entered

the operations, levelling the order book at 118 million DWT at the end of the year. This corresponds to 17% of the existing fleet. Chinese yards claimed 66% of the dry bulk orders, whereas 20% and 10% went to Japan and Korea respectively.

Delivery schedule in 2014 and 2015 is lower than the 2013 actual level.

The prevailing predictions for the world economy going forward suggest higher growth than in 2013. For dry bulk

demand, China’s economic growth rate will be of vital importance as it accounts for more than 40% of the world deep sea trade in dry bulk commodities.

A crucial development would be the advent of arbitrage in iron ore and coal prices, as would be the extent to which Chinese authorities attempt to reduce local pollutions. Stricter regulations in domestic mining could be a stronger driver in Chinese iron ore and coal imports. A substantial build-up of Chinese inventories in bauxite and other high quality mineral ores in the final part of 2013 will more likely reduce the trade growth potential over the first part of 2014.

Seaborne dry bulk trade likely to increase in the region of 5-6% from over the next coming year. Sailing distance in grain, soyabean products are expected to rise further due to a stronger relative increase in South American exports to Asia, compared to other exporting countries. World logistical capacity is projected to expand by around 5 to 6% and port congestion is, therefore, expected to remain more or less unchanged.

IV. DREDGING

India is a major maritime nation by virtue of its long coastline of around 7,517 kilometers on the western and eastern shelves of the mainland and also along the islands. It has 13 major ports and 176 non-major ones and private ports, strategically located on the global shipping routes. The country also has a rapidly globalising economy with a vast potential to expand its participation in trade and development.

A few ports are natural harbours with sufficient depth to handle cargo vessels. Most other ports require capital dredging to expand vessel size-handling capability and maintenance dredging of their existing/expanded capability to berth vessels of different shapes and sizes.

During the 12th Plan period, the capital dredging requirements at 12 major ports is estimated to be 221.11 MCM. The projection for maintenance dredging at major ports is 404.25 MCM, with the total requirement at 625.36 MCM. The non-major ports have projected a total requirement of 543.61 MCM, of which 418.03 MCM is for capital dredging and 128.58 MCM for maintenance dredging. If achieved, this will enable most major ports and non-major ports to handle the vessels with 14 meters draft at the end of the 12th Plan period.

While the consistent maintenance dredging requirements at major ports are expected to continue, increasing private sector participation in port development and related capital dredging activity is likely.

Meanwhile, the dynamics in the Indian market are rapidly changing. The key changes taking place include changes in customer profile for dredging companies from Government to private sector developers, changes in payment patterns for dredging work with stringent performance parameters, the expansion of Indian port capacity and increasing participation of international companies in the Indian dredging market.

Other developments include deeper draught requirements of Indian ports, and tourism development and increasing need for beach nourishment.

Mercator has five TSHD and one cutter and has the required experience, equipment and other resources to participate in the upcoming opportunities in the Indian dredging sector.

OPERATIONAL AND FINANCIAL PERFORMANCE

The Mercator Group has diversified operations with its own fleet of tankers, bulk carriers; dredgers and Floating Production Units (FPU). Mercator also has coal mine licences in Indonesia and a coal mining licence in Mozambique. The Group is in a productionsharing contract with the Government of India in respect of two oil blocks in the Cambay Basin in western India, awarded under NELPVII. Mercator also has been selected as a candidate for offshore oil blocks in Myanmar. Mercator, in consortium, has been awarded a contract by ONGC for conversion of the Mobile Offshore Drilling Unit (MODU) into the Mobile Offshore Production Unit (MOPU).

COAL MINING, PROCUREMENT AND LOGISTICS

Mercator has economic interests in three coal mines in Indonesia and a mining licence in Mozambique and has further established itself as a coal procurement and logistics provider.

Overall, Mercator sold 6.65 MMT (previous year 7.63 MMT) of coal and achieved a total turnover of Rs. 18290.000 Millions (previous year Rs. 20070.000 Millions). This contributed about 53% to the total operating income (previous year 54%). Lower volumes, coupled with pressure on coal prices during the year, affected sales.

OIL and GAS

OFFSHORE PERFORMANCE:

Mercator owns one Mobile Offshore Production Unit (MOPU) and one Floating Storage Offloading Unit (FSO), which are deployed at the EBOK field in Nigeria under a long-term contract. Both the MOPU and FSO, collectively called Floating Production Unit (FPU), are performing well. The MOPU has a processing capacity of 50,000 barrels of oil per day whereas FSO has a storage capacity of 1.2 million barrels.

The EPC project awarded by ONGC for conversion of their Mobile Offshore Drilling Unit (MODU) ‘Sagar Samrat’ into a Mobile Offshore Production Unit (MOPU) is progressing satisfactorily. The completion timeline has been extended due to changes in design and the scope of work.

In this segment, Mercator achieved a total turnover of Rs. 7140.000 Millions compared to Rs. 6100.000 Millions in the previous year. This has contributed about 21% of the total operating income (previous year 16%).

OIL BLOCKS:

Mercator has Production Sharing Contracts with the Government of India for exploration of Petroleum in two blocks under the Seventh New Exploration Licensing Policy round (NELP-VII). The ‘S-Type’ blocks are situated onshore in the prolific Cambay Basin, Gujarat, India and cover 180.22 square kilometre. Subsequent to end of the

year under review, they have commenced drilling operations.

Mercator Petroleum Limited, a subsidiary of the Company in consortium with Oil India Ltd. and others, has been chosen as a selected candidate for two offshore oil blocks by the Ministry of Energy; Republic of Myanmar, in the Myanmar Offshore Block Bidding Round – 2013.

TANKER (WET BULK) PERFORMANCE

Mercator’s tanker fleet consists of a Very Large Crude Carrier (VLCC), Aframax and product tankers. The Company forayed into the gas carrier segment with the acquisition of VLGC during the year.

At the beginning of the year; Mercator had six own tankers of aggregate capacity of 630,966 DWT and one in-chartered chemical tanker of 19,996 DWT. During the year one product tanker of 36,032 DWT and a Very Large Gas Carrier of 50,400 DWT were acquired; one Aframax tanker of 90,607 DWT was sold and one in-chartered chemical tanker was redelivered to its owners. At the end of the year, Mercator owned six tankers and a gas carrier aggregating to 626,791 DWT.

The tanker business achieved a turnover of Rs. 2430.000 Millions as compared to Rs. 3330.000 Millions in the previous year. The number of operating days was reduced by about 10% to 2,243 days (previous year 2479 days). The time charter equivalent (TCE) at USD 16,166 was marginally higher by 2% as compared to USD 15,898 in the previous year. Overall contribution from the tanker division was 7% (previous year 9%) of the total operating income.

DRY BULK PERFORMANCE

Mercator’s bulk carrier fleet comprises Geared and Gearless Panamaxes and Kamsarmaxes. At the beginning of year, there were 14 own bulk carriers with aggregate tonnage of 1,061,488 DWT and one chartered-in bulk carrier of 91,800 DWT with an aggregate capacity of 1,532,288 DWT. There was no change in the composition of fleet during the year.

Mercator achieved a turnover of Rs. 4960.000 Millions (Rs. 6270.000 Millions previous year). Vessel operating days decreased by about 12% over last year to 5,331 days (previous year 6,044 days). Reduction in the number of operating days was primarily because of re-delivery of three inchartered vessels and sale of VLOC during previous year. TCE at USD 11,312 declined by about 18% against previous year’s USD 13,719. This segment contributed about 14% to the total operating income (previous year 17%).

DREDGING PERFORMANCE

At the beginning of the year, Mercator had five dredgers with an aggregate capacity of 26,100 cubic meter and one Cutter Suction Dredger. There was no change in the composition of the dredging fleet during the year. With 1,401 operating days, Mercator achieved a turnover of Rs. 1750.000 Millions (previous year Rs. 1560.000 Millions). This segment contributed about 5% to the total operating income (compared to previous year’s 4%).

PART: I STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENEDED JUNE 30, 2014

(Rs. In Millions)

Particulars	QUARTER ENDED 30/06/2014
	UNAUDITED
Income from operations	1242.230
Expenditure
a) Operating expenses	433.558
b) Bunker cost	185.648
c) Vessel Hire charges	103.201
d) Coal Operating expenses	--
e) Employee benefits expense	32.932
f) Other expenses	64.038
g) Dry‐docking expenses	34.870
Total expenses	854.247
Profit from operations before other income and financial costs	387.983
Depreciation and amortisation expense	222.911
Impairment	--
Profit/(Loss) from ordinary activities before finance costs and exceptional items	149.724
Other Income
a) Gain on foreign currency transactions (net)	29.067
b) Profit/(loss) on sale of assets	--
c) Profit/(loss) on sale of investments	--
d) Other income	2.983
Profit/(Loss) from ordinary activities before finance costs and exceptional items	197.122
Finance costs (net)	147.508
Profit/(Loss) from ordinary activities after finance costs but before exceptional items	49.614
Exceptional Items	--
Profit/(Loss) from ordinary activities before tax	49.614
Tax expense
Current	1.863
Deferred	--
Net Profit /(Loss) from ordinary activities after tax	47.751
Extraordinary items	--
Net Profit /(Loss) for the period	47.751
Minority interest	--
Net Profit /(Loss) after taxes, minority interest and share of profit / (loss) of associates	47.751
Paid ‐up equity share capital (Face Value Re. 1/‐ each)	244.892
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	--
Earnings per share (before extraordinary items) (of Re.1/each) (not annualised)
(a) Basic (Rs.)	0.19
(b) Diluted (Rs.)	0.19
Earnings per share (after extraordinary items) (of Re.1 /‐ each) (not annualised):
(a) Basic (Rs.)	0.19
(b) Diluted (Rs.)	0.19

PART: II SELECT INFORMATION FOR THE QUARTER ENEDE JUNE 30, 2014

Particulars	QUARTER ENDED 30/06/2014
	UNAUDITED
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	146408007
- Percentage of shareholding	59.78%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	-
Percentage of shares (as a % of total share capital of the company)	-
b) Non Encumbered
Number of shares	98484066
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%
Percentage of shares (as a % of total share capital of the company)	40.22%

Particulars	QUARTER ENDED 30/06/2014
B. Investor Complaints (Nos.)
Pending at the beginning of the quarter	0
Receiving during the quarter	2
Disposed of during the quarter	2
Remaining unreserved at the end of the quarter	0

NOTE

1) These results reviewed by the Audit committee were taken on record by the Board of Directors at its meeting held on August 13, 2014.

2) The Statutory Auditors have performed a Limited Review of standalone financial results for the quarterlnine months ended June 30, 2014.

3) Consequent to Schedule II of the Companies Act, 2013, becoming applicable with effect from April 01, 2014. Depreciation for the quarter ended June 30, 2014, has been provided on the basis of usefull life of assets and residual values as prescribed in Schedule II ; except in case of vessels, where the company continues to charge depreciation as earlierm based on actual useful life and estimated residual values. The net impact of the chage is not material.

4) The company has identified segments into Shipping (includes tanker, bulker, dredger), off shore and Coal (Includes mining, procurement and logistics). The ships are operating internationally. The performance of the segment is monitored on the basis of primary segment only.

5) The figures of the previous period/ year have been rearranged/ regrouped wherever necessary.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Counter guarantees issued by the Company for guarantees obtained from bank (net of margin).	729.286	419.112
Counter guarantees issued by the Company for guarantees obtained from bank on behalf of subsidiaries.	43.650	62.650
Corporate guarantees issued by the Company on behalf of subsidiaries.	10581.395	9948.787

FIXED ASSETS

· Land

Office Premises

Vessels

Furniture and Fixtures

Vehicles

Office Equipments

Computer Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.92
UK Pound	1	Rs.98.66
Euro	1	Rs.78.64

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	MRI

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	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		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.