MIRA INFORM REPORT

Report No. :	321490.2
Report Date :	31.12.2015

IDENTIFICATION DETAILS

Name :	RAJRATAN GLOBAL WIRE LIMITED
Registered Office :	“Rajratan House” 11/2, Meera Path, Dhenu Market, Indore – 452003, Madhya Pradesh
Tel. No.:	91-731-2546401
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	09.09.1988
Com. Reg. No.:	10-004778
Capital Investment / Paid-up Capital :	Rs. 43.518 Million
CIN No.: [Company Identification No.]	L27106MP1988PLC004778
IEC No.:	1196000255
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCR4530Q
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges
Line of Business :	The company is engaged in the business of manufacturing and sale of Tyre Bead Wire. (Registered Activity)
No. of Employees :	311 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2340000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Case site not working
Comments :	Rajratan Global Wire Limited (RGWL), along with its subsidiary Rajratan Thai Wire Limited (RTWL) are into manufacturing of Tyre Bead Wire (TBW). RGWL’s manufacturing facilities are located in Pithampur, (Indore) and that of RTWL’s are located in Ratchaburi (Thailand). Both the entities are approved vendor to leading tyre manufacturers in domestic as well as international market. For the financial year ended 2015 (standalone basis), revenue of the company has been marginally increased by 2.91% over previous year’s revenue and it has achieved an average profit margin at 2.91% during the year under a review. Furthermore, rating takes into consideration the consolidated performance, revenue of company during the year was Rs. 2745.351 million as compared to Rs. 2834.702 million in the previous year. The final profit after tax stood at Rs. 17.162 million against loss of Rs. 20.310 million in previous year. Given the continued losses in overseas subsidiary, the cash flows and liquidity profile of the company had weakened. Accordingly, a corporate loan was availed in FY15. The disbursement of this loan and ongoing improvement in performance of overseas subsidiary has supported liquidity and cash flows during recent past. However, ratings continue to derive comfort from strong position as a leading manufacturer of Tyre Bead Wire with highest market share in India and sole local supplier status to tyre manufacturers in Thailand. The Company’s operational profile benefits from long established business relationships in domestic market as reflected by healthy share of business with all the leading tyre manufacturers in India. These operational strengths have in-turn supported a track record of stable and adequate profitability at standalone level. The company’s ability to further improve capacity utilization of overseas unit by securing incremental approvals from other large tyre manufacturers will remain key determinant of the accruals, debt servicing ability and liquidity. In view of aforesaid, company can be considered for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term-Fund Based-Term Loans=BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May, 2015
Rating Agency Name	CARE
Rating	Short Term-Fund Based=A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	May, 2015

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 31-03-2015.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Shubham Jain
Designation :	Company Secretary
Contact No.:	91-731-2546401

LOCATIONS

Registered Office :	“Rajratan House” 11/2, Meera Path, Dhenu Market, Indore – 452003, Madhya Pradesh, India
Tel. No.:	91-731-2546401 / 3928171
Fax No.:	91-731-2542534
E-Mail :	rgwl@rgwl.co.in
Website :	http://www.rgwl.co.in http://www.rajratan.co.in
Location :	Owned
Factory :	Plot No. 200 –A and B, Sector I, Industrial Area, Pithampur, District Dhar, Madhya Pradesh, India
Tel. No.:	91-7292-253375 / 252904 / 253429 , 253375
Fax No.:	91-7292-253357

DIRECTORS

As on 31.03.2015

Name :	Mr. Sunil Chordia
Designation :	Managing Director
Address :	26-B, Race Course Road, Opposite Raka Mension, Indore - 452003, Madhya Pradesh, India
Date of Appointment :	09.09.1988
DIN No.:	00144786
Name :	Ms. Sangita Sunil Chordia
Designation :	Whole-Time Director
Address :	26-B Y.N. Road, Indore - 452003, Madhya Pradesh, India
Date of Birth/Age :	47 Years
Qualification :	B.Com
Experience :	17 Years
Date of Appointment :	05.05.2010
DIN No.:	00147150
Name :	Mr. Abhishek Dalmia
Designation :	Director
Address :	Radha Vihar, 35-B, Prithviraj Road, New Delhi - 110011, India
Date of Birth/Age :	45 Years
Qualification :	B.Com (Hons), FCA, ACWA
Experience :	22 Years
Date of Appointment :	11.06.2005
DIN No.:	00011958
Name :	Mr. Chandra Shekhar Bobra
Designation :	Director
Address :	25 , Kanchan Bagh, Indore - 452001, Madhya Pradesh, India
Date of Birth/Age :	56 Years
Qualification :	B.Com, M.B.A
Experience :	34 Years
Date of Appointment :	11.06.2005
DIN No.:	00209498
Name :	Mr. Shiv Singh Mehta
Designation :	Director
Address :	Shardool" 20/4, Yeshwant Niwas Road,, Indore - 452003, Madhya Pradesh, India
Date of Birth/Age :	60 Years
Qualification :	B.E, M.B.A.
Experience :	35 Years
Date of Appointment :	10.07.2003
DIN No.:	00023523
Name :	Mr. Purushottam Das Nagar
Designation :	Director
Address :	11 Bunglow Colony, Bunglow No. 2, 7/2, Race Course Road, Indore - 452003, Madhya Pradesh, India
Date of Birth/Age :	69 Years
Qualification :	B.Com, FCA, LLB
Experience :	46 Years
Date of Appointment :	10.07.2003
DIN No.:	00151621
Name :	Mr. Surendra Maru Sing
Designation :	Director
Address :	A 601, BCM Heights, A-5, PU4, Scheme No. 54, Bombay Hospital Link, Indore, - 452010, Madhya Pradesh, India
Date of Birth/Age :	67 Years
Qualification :	M.E.
Experience :	42 Years
Date of Appointment :	28.05.2012
DIN No.:	03081191

KEY EXECUTIVES

Name :	Mr. Shubham Jain
Designation :	Secretary
Address :	35A, Revenue Nagar, Bicholi Hapsi Road, Indore - 452016, Madhya Pradesh, India
Date of Appointment :	01.04.2014
PAN No.:	AVGPJ3676E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1546190	35.53
Bodies Corporate	1164301	26.75
Sub Total	2710491	62.28
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2710491	62.28
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1000	0.02
Sub Total	1000	0.02
(2) Non-Institutions
Bodies Corporate	1016261	23.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	352626	8.10
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	248520	5.71
Any Others (Specify)	22902	0.53
Clearing Members	2876	0.07
Non Resident Indians	1481	0.03
Hindu Undivided Families	18545	0.43
Sub Total	1640309	37.69
Total Public shareholding (B)	1641309	37.72
Total (A)+(B)	4351800	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	4351800	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in the business of manufacturing and sale of Tyre Bead Wire. (Registered Activity)

Products :

NIC Code Number	Product Description
2718	Steel Wire

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

• Sri Lanka
• Italy
• South Africa

Imports :

Products :

Raw Material

Countries :

• Sri Lanka

Terms :

Selling :

Cash, L/C and Credit (30 Days)

Purchasing :

Cash, L/C and Credit (30 Days)

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

311 (Approximately)

Bankers :

• State Bank of India, Commercial Branch, Indore, Madhya Pradesh, India
• IDBI Bank Limited, Old Palasia, Indore, Madhya Pradesh, India

Facilities :

Secured Loan	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term Loans
- From Bank	175.000	45.000
- From Others	0.982	2.343
Short-term borrowings
Loans repayable on demand
- From Bank	415.297	430.406
Total	591.279	477.749

NOTE :

LONG TERM BORROWINGS

The Outstanding of Long Term Borrowings are net of installment due within next 12 months aggregating to Rs.55.861 Million (Previous year Rs.50.827 Million) which are classified as current liabilities.

SECURITY:

Term loans outstanding Rs. 175.000 Million (Previous year Rs.45.000 Million) are secured by way of an equitable mortgage of immovable properties ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company's movable machinery, present and future, subject to prior charges created in favour of Company's Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

Vehicle loan outstanding Rs.0.982 Million (Previous Year Rs.2.343 Million) is secured by hypothecation of Motor Car.

Terms of Repayment of Long Term Borrowings

(Rs. In Million)

Particulars	Total Tenor	Frequency of Installment	No. of Installment due as on 31.3.2015	Amount Outstanding	Rate of Interest
State Bank of India	4 Years	Quarterly	9	50.082	14.60%
State Bank of India	5 Years	Quarterly	20	180.005	14.60%
Daimler Financial Services India Private Limited	3 Years	Monthly	20	2.343	9.49%

SHORT TERM BORROWINGS

Loans repayable on demand from State Bank of India, Indore and IDBI Bank Limited, Indore are Working Capital Loans and are secured by hypothecation of company’s stock and book debts, present and future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

Auditors :
Name :	Fadnis and Gupte Chartered Accountants
Address :	Indore, Madhya Pradesh, India
Memberships :	--
Collaborators :	--
Companies /Entitles under the control of Key Management Personnel :	· Rajratan Resources Private Limited · Rajratan Investment Limited · Cee Cee Engineering Industries Private Limited
Subsidiaries :	· Rajratan Thai Wire Company Limited, Thailand · Swaraj Technocraft Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs. 80.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4351800	Equity Shares	Rs.10/- each	Rs. 43.518 Million

Reconciliation of Number of Shares

Particulars	No. of shares
Shares outstanding as at 1st April 2014 / 1st April 2013	4351800
Shares outstanding at the end of the year	4351800

The company has only one class of shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company 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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended 31st March 2015, the amount of per share dividend recognized as distributions to equity share holders is Re. 1/- per Share (Previous Year Re. 1/- per Share). The total dividend appropriation for the year ended March 31, 2015 amounts to Rs.5.222 Million including Corporate Dividend Distribution Tax of Rs.0.870 Million ( Previous Year Rs.5.091 Million including Corporate Dividend Distribution Tax Rs.0.740 Million)

List of shareholders holding more than 5% of the total number of shares issued by the Company

Particulars	As at 31st March-2015
Name of the share holder	No. of Shares	% Holding
Rajratan Investment Limited	782881	17.99
Avalokiteshvar Valinv Limited	625200	14.37
Rajratan Resources Private Limited	381420	8.76
Sangita Chordia	558100	12.82
Sunil Chordia	479390	11.02
Yashovardhan Chordia	268000	6.16

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	43.518	43.518	43.518
(b) Reserves & Surplus	775.076	725.484	658.192
(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)	818.594	769.002	701.710
(3) Non-Current Liabilities
(a) long-term borrowings	175.982	47.343	94.589
(b) Deferred tax liabilities (Net)	80.826	84.259	87.594
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	256.808	131.602	182.183
(4) Current Liabilities
(a) Short term borrowings	432.717	443.058	416.849
(b) Trade payables	281.222	284.373	189.668
(c) Other current liabilities	74.629	62.206	63.402
(d) Short-term provisions	8.766	13.858	11.174
Total Current Liabilities (4)	797.334	803.495	681.093
TOTAL	1872.736	1704.099	1564.986
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	405.746	428.873	443.637
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	2.993	0.340	2.774
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	389.257	341.562	239.046
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	111.783	32.002	80.280
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	909.779	802.777	765.737
(2) Current assets
(a) Current investments	0.000	0.000	40.000
(b) Inventories	204.936	148.532	111.445
(c) Trade receivables	655.517	656.409	510.619
(d) Cash and cash equivalents	53.846	9.574	62.154
(e) Short-term loans and advances	48.424	86.646	74.223
(f) Other current assets	0.234	0.161	0.808
Total Current Assets	962.957	901.322	799.249
TOTAL	1872.736	1704.099	1564.986

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	2390.109	2320.566	1968.355
	Other Income	9.869	10.632	10.941
	TOTAL (A)	2399.978	2331.198	1979.296
Less	EXPENSES
	Cost of Materials Consumed	1234.208	1242.506	1222.044
	Purchases of Stock-in-Trade	517.597	404.948	123.499
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(36.554)	(1.012)	10.959
	Employees benefits expense	99.603	99.272	91.612
	Other expenses	368.358	354.33	309.97
	TOTAL (B)	2183.212	2100.044	1758.084
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	216.766	231.154	221.212
Less	FINANCIAL EXPENSES (D)	90.635	88.816	85.35
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	126.131	142.338	135.862
Less/ Add	DEPRECIATION/ AMORTISATION (F)	30.484	38.559	37.309
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	95.647	103.779	98.553
Less	TAX (H)	31.833	31.396	30.543
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	63.814	72.383	68.010
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	275.998	210.706	149.754
Less	APPROPRIATIONS
	Transfer to General Reserve	2.000	2.000	2.000
	Proposed Dividend	4.352	4.352	4.352
	Corporate Dividend Tax	0.870	0.739	0.706
	Total (M)	7.222	7.091	7.058
	Balance Carried to the B/S (J+K+L-M)	332.590	275.998	210.706
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	64.763	84.930	85.052
	Freight	1.764	0.968	3.408
	TOTAL EARNINGS	66.527	85.898	88.460
	IMPORTS
	Raw Materials	486.656	84.066	159.234
	Components and Stores parts	1.016	0.300	0.397
	Capital Goods	0.000	0.178	0.000
	Consumables Goods	0.022	0.000	0.000
	Trading Goods	464.835	358.631	112.142
	TOTAL IMPORTS	952.529	443.175	159.631
	Earnings / (Loss) Per Share (Rs.)	14.66	16.63	15.63

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	55.861	50.827	51.950
Cash generated from operations	115.170	206.651	184.882
Net cash flow from operating activity	81.543	172.606	153.299

QUARTERLY RESULTS

Particulars	30.06.2015	30.09.2015
Unaudited	1^ST Quarter	2^nd Quarter
Net Sales	548.400	633.800
Total Expenditure	500.900	579.490
PBIDT (Excl OI)	47.500	54.310
Other Income	1.930	5.400
Operating Profit	49.430	59.710
Interest	21.440	21.010
Exceptional Items	NA	NA
PBDT	27.990	38.700
Depreciation	7.900	7.840
Profit Before Tax	20.090	30.860
Tax	6.530	9.380
Provisions and contingencies	NA	NA
Profit After Tax	13.560	21.470
Extraordinary Items	NA	NA
Prior Period Expenses	NA	NA
Other Adjustments	NA	NA
Net Profit	13.560	21.470

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.67	3.12	3.46
Operating Profit Margin (PBIDT/Sales)	(%)	9.07	9.96	11.24
Return on Total Assets (PBT/Total Assets}	(%)	6.46	7.62	7.45
Return on Investment (ROI) (PBT/Networth)		0.12	0.13	0.14
Debt Equity Ratio (Total Debt /Networth)		0.81	0.70	0.80
Current Ratio (Current Asset/Current Liability)		1.21	1.12	1.17

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.188.00/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	43.518	43.518	43.518
Reserves & Surplus	658.192	725.484	775.076
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	701.710	769.002	818.594
long-term borrowings	94.589	47.343	175.982
Short term borrowings	416.849	443.058	432.717
Current Maturities of Long-Term Debts	51.950	50.827	55.861
Total borrowings	563.388	541.228	664.560
Debt/Equity ratio	0.803	0.704	0.812

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1968.355	2320.566	2390.109
		17.894	2.997

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1968.355	2320.566	2390.109
Profit	68.010	72.383	63.814
	3.46%	3.12%	2.67%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

OVERVIEW

The Company alongwith its wholly owned subsidiary, Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. The Company is having 68% holding in Swaraj Technocrafts Private Limited which is engaged in manufacturing of Wire-drawing Machinery and Tools. In addition, the Company has a Wind Mill located in India for generation of electricity. .

Economic Scenario

As per the recent report by the World Bank, India is set to emerge as the world’s fastest-growing major economy by 2015 ahead of China. India’s Gross Domestic Product (GDP) is expected to grow at 7.5 per cent in 2015.

The improvement in India’s economic fundamentals has accelerated in the year 2015 with the combined impact of strong government reforms, RBI's inflation focus supported by benign global commodity prices. The Financial performance for year under review is as follows;

Financial Highlights:

Operating in a sluggish economic and manufacturing environment the company has performed reasonably well during the year. They have continued working on improvements in quality, productivity waste elimination, cost control and people engagement.

On standalone basis: -

Revenue from operations for financial year 2014-15 was at Rs.2399.978 Million was higher by last year (Rs.2331.198 Million in the previous year).

PBDIT from standalone activity of company during the year decreased to Rs.216.766 Million from Rs.231.155 Million in the previous year

The Profit before tax is Rs.95.647 Million as against Rs.103.779 Million in the previous year.

Cash profit decreased by Rs.126.131 Million from Rs.142.339 Million in the previous year

Prospects and Outlook:

Looking at the positive economic outlook for the current year, the company is making efforts to increase the sales. They are continuously working to strengthen relationship with customers in India, Thailand and other export destinations.

The outlook of business in Thailand is positive because of major customer approvals and winning customer confidence. They are expecting a major improvement in Thailand business in the current year. The lower raw material prices will help improve the profitability.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

While the economic activity in the year 2014-15 was subdued which largely affected the automotive and in turn the bead wire industry, the outlook for the current year looks to be optimistic in the expectation of higher economic growth. Government’s recent initiatives to encourage investment in various segments of the economy will bring back capital expenditure. On the back of improved demand scenario, automotive and tyre manufacturers are focusing on expansion projects. As a result, demand for bead wire is expected to grow in the years ahead.

INTERNAL CONTROL SYSTEM

The Company has a comprehensive system of internal control to safeguard the Company’s assets against the loss from unauthorized use and ensure proper authorization of financial transactions. The Company has internal control systems commensurate with the size and nature of the business and has experienced personnel positioned adequately in the organization to ensure internal control process and compliances. The Company takes abundant care in designing, reviewing and monitoring regularly the working of internal control systems and internal control compliances for all important financial internal control processes. The Audit findings are reported on quarterly basis to the Audit Committee of the Board headed by a Non-executive Independent Director.

The Company maintains a system of internal controls designed to provide a high degree of assurance regarding the effectiveness and efficiency of operations, the reliability of financial controls and compliance with laws and regulations.

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Short-term borrowings
Loans and advances from related parties	17.420	9.586
Other loans and Advances	0.000	3.066
Total	17.420	12.652

Note:

Loans and advances from related parties and other loans and advances are unsecured.

INDEX OF CHARGES

.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10243835	11/03/2011 *	45,000,000.00	IDBI BANK LIMITED	SPECIALISED CORPORATE BRANCH, UPPER GROUND FLOOR,  CAPTAIN C.S. NAYUDU ARCADE, 10/2, OLD PALASIA, INDORE, Madhya Pradesh - 452001, INDIA	B09767625
2	10075655	22/10/2014 *	665,400,000.00	State Bank of India	COMMERCIAL BRANCH, A.B. ROAD, INDORE, Madhya Pradesh - 452001, INDIA	C50135656
3	90205945	06/02/2015 *	600,000,000.00	IDBI Bank Limited	SPECIALISED CORPORATE BRANCH, UPPER GROUND FLOOR,  CAPTAIN C.S. NAYUDU ARCADE, 10/2, OLD PALASIA, INDORE, Madhya Pradesh - 452001, INDIA	C48292247

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF ENDED 30^th SEPTEMBER 2015

(Rs. In Million)

		Particulars	Quarter Ended 30.09.2015	Quarter Ended 30.06.2015	Half Year Ended 30.09.2015
1		Income from Operations
		Sales/Income from Operations (Gross)	633.239	548.003	1181.242
		b) Other Operating Income	0.565	0.401	0.966
	Total Income from Operations (Net)		633.804	548.404	1182.208
2	Expenses
	a)	Cost of Materials consumed	275.546	278.277	553.823
	b)	Purchase of Stock-in-trade	146.281	89.982	236.263
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	31.596	9.914	41.510
	d)	Employee benefit expenses	25.681	28.197	53.878
	e)	Depreciation and amortization expense	7.838	7.898	15.736
	f)	Other expenses	100.404	94.538	194.942
	Total Expenses		587.346	508.806	1096.152
3		Profit /(Loss) from operations before other income, finance costs and exceptional items	46.458	39.598	86.056
4	Other Income		5.413	1.925	7.338
5	Profit /(Loss) from ordinary activities before finance costs and exceptional items		51.871	41.523	93.394
6	Finance Costs		21.013	21.435	42.448
7	Profit /(Loss) from ordinary activities after finance costs but before exceptional items		30.858	20.088	50.946
8	Exceptional Items		0.000	0.000	0.000
9	Profit /(Loss) from ordinary activities before tax		30.858	20.088	50.946
10	Tax Expense		9.384	6.531	15.915
11	Net Profit /(Loss) from ordinary activities after tax		21.474	13.557	35.031
12	Paid up equity share capital (Eq. shares of Rs.10/- each)		43.518	43.518	43.518
13	Reserve excluding revaluation reserves		--	--	--
14		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Before Extraordinary Items	4.93	3.12	8.05
		After Extraordinary Items	4.93	3.12	8.05
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	1641309	1641309	1641309
		- Percentage of Shareholding	32.72%	32.72%	32.72%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	450000	450000	450000
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	16.60%	16.60%	16.60%
		- Percentage of shares (as a % of the total share capital of the Company)	10.34%	10.34%	10.34%
		b) Non- encumbered
		- Number of shares	2260491	2260491	2260491
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	83.40%	83.40%	83.40%
		- Percentage of shares (as a % of the total share capital of the Company)	51.94%	51.94%	51.94%

Particulars	Quarter Ended 30.09.2015
Pending at the beginning of the quarter	Nil
Received during the quarter	1
Disposed of during the quarter	1
Remaining unresolved at the end of the quarter	Nil

Note:

The above results have been reviewed by the Audit Committee and taken on record by Board of Directors in its meeting held on August 11, 2015.

The Statutory Auditors have carried out a "Limited Review" of results for the quarter ended on June 30, 2015.

Results of wholly owned subsidiary "Rajratan Thai Wire Company Limited" Thailand and Results of another subsidiary M/s. Swaraj Technocraft Private Limited Indore have not been included in the above results.

The Company operates in only one reportable segment i.e. "Tyre Bead Wire".

4,50,000 equity shares of promoters are pledged/encumbered for raising loans for the company.

Previous period figures have been regrouped, reworked, wherever necessary.

STATEMENT OF ASSETS ANS LIABILITIES AS ON 30^TH SEPTEMBER 2015

(Rs. In Million)

SOURCES OF FUNDS	30.09.2015
	(Half Year ended)
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	43.518
(b) Reserves & Surplus	810.107
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	853.625
(3) Non-Current Liabilities
(a) long-term borrowings	146.742
(b) Deferred tax liabilities (Net)	80.194
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	226.936
(4) Current Liabilities
(a) Short term borrowings	410.899
(b) Trade payables	312.799
(c) Other current liabilities	69.137
(d) Short-term provisions	10.524
Total Current Liabilities (4)	803.359
TOTAL	1883.920
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	392.856
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	9.093
(iv) Intangible assets under development	0.000
(b) Non-current Investments	389.257
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	114.520
(e) Other Non-current assets	0.000
Total Non-Current Assets	905.726
(2) Current assets
(a) Current investments	0.000
(b) Inventories	194.082
(c) Trade receivables	637.853
(d) Cash and cash equivalents	70.030
(e) Short-term loans and advances	75.190
(f) Other current assets	1.039
Total Current Assets	978.194
TOTAL	1883.920

CONTINGENT LIABILITIES:

PARTICULARS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

Contingent liabilities :

(a) Claims against the company not acknowledged as debt

Nil

Nil

(b) Guarantees

(i) Bank Guarantee

1.000

11.000

(ii) Corporate Guarantee for the credit facilities availed by M/s. Rajratan Thai Wire Company Limited, Thailand the Wholly Owned subsidiary of the company.

US$17.500

US$17.500

(c) 5,400,000 equity shares of M/s. Rajratan Thai Wire Company Limited (RTWL), Thailand have been pledged each with State Bank of India and ICICI Bank Ltd, against loans sanctioned by them to RTWL

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(d) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful outcome in the appeals

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Particulars	Financial year	Amount in Million	Forum where dispute is pending
Income Tax	2009-10	0.252	CIT (A)-II, Indore
Income Tax	2010-11	0.487	CIT (A)-II, Indore
Income Tax	2003-04	0.153	ITAT, Indore
Income Tax	2003-04	0.200	CIT (A)-II, Indore
Income Tax	2011-12	0.911	CIT (A)-II, Indore
Service Tax	2005-06	0.584	Customs, Central Excise & Service Tax Appellate, Tribunal, New Delhi
Central Sales Tax	2012-13	1.450	Add. Commissioner (Appeals), Indore
NOTE: Income Tax appeals pending before CIT (Appeals) for F.Y. 2009-10 and 2010-11 pertain to an issue which has been decided by the Hon'ble Income Tax Appellate Tribunal, Indore in favor of the Company for earlier Years There are no pending litigation other than those mentioned above. The total impact on the financial statements of pending litigation is Rs.4.038 Million (Previous year Rs.1.566 Million), if decided against the Company. The Management is confident that all pending Litigation will be decided in favor of the Company and there is no expected outflow of resources on this account.

FIXED ASSETS

· Free hold Land

· Lease hold Land

· Site Development

· Factory Building and Shed

· Plant and Machinery

· E.T.P and Machinery

· Electrical Installation

· Office Equipment

· Furniture and Fixtures

· Vehicles

· Computer Peripherals

· ERP Software

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 records 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.66.42
UK Pound	1	Rs.98.54
Euro	1	Rs.72.60

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	KAR
Report Prepared by :	SUD

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
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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 unfavorable 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.