MIRA INFORM REPORT

Report No. :	306656
Report Date :	05.02.2015

IDENTIFICATION DETAILS

Name :	BHATIA INDUSTRIES AND INFRASTRUCTURE LIMITED
Formerly Known As :	BCC FINANCE LIMITED
Registered Office :	BCC House, 8/5, Manoramaganj, Navratan Bagh Main Road, Indore – 452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	08.07.1993
Com. Reg. No.:	10-007767
Capital Investment / Paid-up Capital :	Rs. 212.000 Millions
CIN No.: [Company Identification No.]	L65922MP1993PLC007767
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Trading of Coal and Infrastructure / Trading of Land.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating also takes into account liquidity issues being confronted by the company which has driven multiple instances of letter of credit development during few months. Rating is also constrained due to low reserves and liquidity position which has deteriorated as the company has extended advances to other group companies, which are under financial stress. Business is active. Payment terms are slow. The company can be considered for business dealing on a safe and secured trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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	ICRA
Rating	Cash Credit : “D”
Rating Explanation	Lowest credit quality and very low prospects of recovery.
Date	June , 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

Name :	Mr. Naval Jain
Designation :	Assistant President Finance
Contact No.:	91-731-4066101
Date :	04.02.2015

LOCATIONS

Registered Office / Corporate Office:	BCC House, 8/5, Manoramaganj, Navratan Bagh Main Road, Indore – 452001, Madhya Pradesh, India
Tel. No. :	91-731-4066101/ 4200219/ 4200211
Fax No. :	91-731-2498102
E-Mail :	info@bhatiacoalindia.com cs@bhatiacoalindia.com
Website :	www.bhatiacoalindia.com/BIIL http://www.bhatiacoalindia.com
Head Office :	BCC House, Plot No.4, 6^th Avenue Harrington Road, Chetpt, Chennai – 600031, Tamilnadu, India
Regional and Branch Offices :	Located at : Ahmedabad Chandrapur Chennai Hyderadad Mumbai Nagpur Porbandar Surat and Vizag

DIRECTORS

As on 31.03.2014

Name :	Mr. Surinder Singh Bhatia
Designation :	Executive Director and CEO
Name :	Mr. Manjeet Singh Bhatia
Designation :	Director
Name :	Mr. Jitendra Kumar Jain
Designation :	Director
Name :	Mr. Chitranjan Singh Kahlon
Designation :	Director
Date of Appointment :	08.11.2012
Name :	Mr. Lal Krishna Thanvi
Designation :	Director (Ceased w.e.f. 08.11.2012)
Name :	Malathkar S. Balajirao
Designation :	Director
Name :	Basanti Lal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Samir Kumar Bahri
Designation :	Company Secretary and Compliance Officer

Name :	Mr. Harjeet Ajmani
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2014

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	6830680	51.75
Bodies Corporate	1571896	11.91
Sub Total	8402576	63.66
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8402576	63.66
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	734695	5.57
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1244350	9.43
Individual shareholders holding nominal share capital in excess of 0.100 Million	2785942	21.11
Any Others (Specify)	32437	0.25
Non Resident Indians	1171	0.01
Clearing Members	20626	0.16
Directors & their Relatives & Friends	10440	0.08
Foreign Nationals	200	0.00
Sub Total	4797424	36.34
Total Public shareholding (B)	4797424	36.34
Total (A)+(B)	13200000	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)	13200000	0.00

BUSINESS DETAILS

Line of Business :	Trading of Coal and Infrastructure / Trading of Land.
Products :	Trading of Land.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Imports :
Products :	Coal
Countries :	Indonesia South Africa
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

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 :

50 (Approximately)

Bankers :

• Bank of India
• Central Bank of India
• State Bank of India
• Indusind Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand
From Banks
Cash Credit Hypothecation Limits from^1Central Bank Of India	49.840	44.100
Bank of India	236.210	12.970
Other Loans and Advances
Buyer's Line of Credit Facilities from^1&2
Bank of India	162.350	458.610
Central Bank Of India	175.010	278.050
Total	623.410	793.730

NOTE

1 Cash Credits and Buyer's Line Credit are secured by way of hypothecation on Stocks, Receivables and other Chargeable Current Assets, both present and future of the Company, under the ranking first charge on pari-passu basis under Consortium Agreement and collateral securities by way of equitable mortgage of immovable properties and personal guarantee of the Promoter/ Directors of the Company.

2 The Company has availed the Buyer’s Credit facilities from both the above Banks by ear - marking the limits of Foreign Letter of Credit and such facilities are within the sanctioned limits.

Auditors :
Name :	R S Bansal and Company Chartered Accountants
Address :	Urvashi, 3, Jaora Compound, Indore – 452001, Madhya Pradesh, India
Tel. No. :	91-731-2702834/ 35
Fax No. :	91-731-4003435
E-Mail :	vjybansal@yahoo.co.in client.rsbco@gmail.com
Memberships :	Not Available
Collaborators :	Not Available
Associates :	DB Corp Limited BCC Enterprises (India) Limited Bhatia Global Trading Limited BCC Cargo Limited Ishhar Overseas Limited
Enterprises over which key Managerial Personnel of Relatives of KMP are able to exercise significate influence :	Asian Natural Resources (India) Limited Bhatia Port and Infrastructure Limited BCC Cargo BCC Enterprises (India) Limited Isshar Overseas Limited SSB Land Developers Private Limited Bhatia Entertainment Private Limited Bhatia International Pte Limited Bhatia Global Trading Limited Bhatia Coke and Energy Limited BIL Holding Pte Limited BCC Estates Private Limited Bhatia OSL Washeries and Minerals limited Bhatia Professional Education Institutions (Indore) Limited Bhatia Sons (India) Limited Reliance Services and Consultants Private Limited IOF Pte Limited Pt. Bhatia International, Indonesia Bhatia Coal Washeries Limited Bhatia Energy Limited GSB Real Estates Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions
800,000	2% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 80.000 Millions
	Total		Rs. 230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,200,000	Equity Shares	Rs.10/- each	Rs. 132.000 Millions
800,000	2% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 80.000 Millions
	Total		Rs. 212.000 Millions

NOTE

1. The Company has two types of shares referred to as Equity shares having a face value of Rs. 10/- each and Preference Shares having a face value of Rs. 100/- each.

2. The Equity share holder is eligible for one voting Right per share held.

3. Preference shares hold preferential right of Dividend at fixed rate of 2% and preferential repayment of principal amount at the time of Redemption, i.e, in year 2021-22.

4. The dividend on Equity Shares as proposed by the Board of Directors is subject to the approval of the shareholders. At the time of winding up, Equity Shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

5. In the FY 2011-12 the company had issued 9900000 fully paid up Bonus Equity Shares of Rs. 10/- each in the ration of 3:1.

6. Shareholder holding more than 5% of shares are :-

Opening Shares	31.03.2014
	% of Holding	No. of Shares
Equity Shares @ Rs. 10/- each
Surinder Singh Bhatia	14.08 %	1,858,840
Ishhar Overseas Private Limited	7.97%	1,051,896
Preference Shares @ Rs. 100/- each
Mr. Gurvinder Singh Bhatia	50%	400,000
Mr. Surinder Singh Bhatia	50%	400,000

Reconciliation of Equity Shares :

Name	31.03.2014
	No. of Shares	Amount (Rs. In Millions)
Opening Shares	13,200,000	132.000
Add: Allotment of Bonus Shares	--	--
Closing Shares	13,200,000	132.000

Reconciliation of Preference Shares :

Name	31.03.2014
	No. of Shares	Amount (Rs. In Millions)
Opening Shares	800,000	80.000
Add: Addition during the year	--	--
Closing Shares	800,000	80.000

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	212.000	212.000	212.000
(b) Reserves & Surplus	143.660	132.490	81.460
(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)	355.660	344.490	293.460
(3) Non-Current Liabilities
(a) long-term Borrowings	0.000	0.000	0.000
(b) Deferred Tax Liabilities (Net)	0.000	0.000	0.000
(c) Other Long Term Liabilities	0.000	0.000	0.610
(d) long-term Provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000	0.610
(4) Current Liabilities
(a) Short Term Borrowings	623.410	793.730	451.270
(b) Trade Payables	288.280	148.110	97.000
(c) Other Current Liabilities	121.950	16.550	4.300
(d) Short-term Provisions	22.040	55.220	31.100
Total Current Liabilities (4)	1055.680	1013.610	583.670
TOTAL	1411.340	1358.100	877.740
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible Assets	0.000	0.000	0.000
(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	0.000	0.000
(b) Non-current Investments	11.120	8.620	1.110
(c) Deferred Tax Assets (net)	0.020	0.020	0.000
(d) Long-term Loan and Advances	7.360	7.390	7.450
(e) Other Non-current Assets	0.080	0.470	0.580
Total Non-Current Assets	18.580	16.500	9.140
(2) Current assets
(a) Current Investments	0.000	0.000	0.000
(b) Inventories	240.400	245.900	276.400
(c) Trade Receivables	767.570	853.060	172.760
(d) Cash and Cash Equivalents	314.210	168.030	47.440
(e) Short-term Loans and Advances	62.200	71.970	370.610
(f) Other Current Assets	8.380	2.640	1.390
Total Current Assets	1392.760	1341.600	868.600
TOTAL	1411.340	1358.100	877.740

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	3009.100	2623.080	1482.420
		Other Income	30.830	27.470	26.940
		TOTAL (A)	3039.930	2650.550	1509.360
Less	EXPENSES
		Purchases of Stock-in-Trade	2897.230	2387.340	1490.420
		Changes in inventories of Stock-in-Trade	5.500	30.500	(106.880)
		Employees benefits expense	2.690	2.710	2.530
		Other expenses	11.830	31.650	10.240
		Net (Gain)/Loss on Foreign Exchange Translation	(8.040)	24.940	0.000
		Exceptional Items	0.000	0.000	1.500
		TOTAL (B)	2909.210	2477.140	1397.810
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		130.720	173.410	111.550
Less	FINANCIAL EXPENSES (D)		97.880	76.350	63.600
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.840	97.060	47.950
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.260	0.050
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		32.840	96.800	47.900
Less	TAX (H)		12.080	32.320	17.300
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		20.760	64.480	30.600
Less:	Amount utilized towards issue of fully paid up Bonus Shares		53.920	14.320	86.210
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	104.730
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	10.000
		Capital Redemption Reserve	5.710	11.430	11.430
		Proposed Dividend on Equity Shares	6.600	9.900	9.900
		Proposed Dividend on Preference Shares	1.600	1.600	1.600
		Dividend Distribution Tax	1.390	1.950	1.870
	BALANCE CARRIED TO THE B/S		93.670	53.920	14.320
	VALUE OF IMPORT ON C.I.F. BASIS		1161.130	176.366	788.870
	Earnings / (Loss) Per Share (Rs.)		1.43	4.74	2.18

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.69	2.46	2.06
Operating Profit Margin (PBIDT/Sales)	(%)	4.34	6.61	4.52
Return on Total Assets (PBT/Total Assets}	(%)	2.35	7.17	5.46
Return on Investment (ROI) (PBT/Networth)		0.09	0.28	0.16
Debt Equity Ratio (Total Debt/Networth)		1.75	2.30	1.54
Current Ratio (Current Asset/Current Liability)		1.32	1.32	1.49

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	212.000	212.000	212.000
Reserves & Surplus	81.460	132.490	143.660
Net worth	293.460	344.490	355.660
long-term borrowings	0.000	0.000	0.000
Short term borrowings	451.270	793.730	623.410
Total borrowings	451.270	793.730	623.410
Debt/Equity ratio	1.538	2.304	1.753

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)
Revenue from operations	1482.420	2623.080	3009.100
		76.946	14.716

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	1482.420	2623.080	3009.100
Profit/(Loss) After Tax	30.600	64.480	20.760
	2.06%	2.46%	0.69%

LOCAL AGENCY FURTHER INFORMATION

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10199405	18/08/2012 *	990,000,000.00	BANK OF INDIA	MID-CORPORATE BRANCH, AIREN HEIGHTS, PLOT NO. 14, PU-3, SCHEME NO. 54, INDORE, MADHYA PRADESH - 452 010, INDIA	B56408602

* Date of charge modification

CORPORATE INFORMATION

Bhatia Industries and Infrastructure Limited (the Company) having CIN L65922MP1993PLC007767 was incorporated on 08/07/1993 under laws of Republic of India. The Company is mainly engaged in Trading of all type of Coal, Stevedoring, Logistic services and Trading in land.

PERFORMANCE REVIEW

During the year, the Company has posted Turnover of Rs. 3009.10 Millions as compared to the turnover of Rs. 2623.08 Millions in previous year and Profit after tax of Rs. 20.76 Millions as compared to the Profit after tax of Rs. 64.48 Millions in previous year.

Turnover increased by 14.72% to Rs. 3009.10 Millions.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

India has the fifth largest coal reserve in the world. Coal production in Asia Pacific region has grown tremendously and accounts for over 67% of total production globally. The country's coal production has increased by 28.5%, but despite this it still depends on imports.

Coal has been recognized as the most important source of energy for electricity generation and industries such as steel, cement, fertilizers and chemicals are major sectors of coal consumption. So in order to satisfy the coal demand, the Indian coal industry needs more investment and private players to raise their production level. As per our latest estimations, carried out in recent research report, the overall coal imports are anticipated to cross the 100 Million Metric Tons-mark. Deallocation of coal blocks and stake sales in PSUs were among the major steps taken by the government to boost production and investment in the coal industry. Better infrastructure by road enable fast movement of coal among various locations in the Country, infrastructure section in India is getting better by way of various projects undertaken by the Government.

The real estate sector in India assumed greater prominence with the liberalization of the economy, the consequent increase in business opportunities and labour migration led to rising demand for commercial and housing space. At present, the real estate and construction sectors are playing a crucial role in the overall development of India's core infrastructure. The real estate industry's growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools) and information technology (IT)- enabled services (like call centres) etc and vice versa. The scenario underwent a change in line with the sector's growth, and as of today, the real estate industry's dynamics reflect consumers' expectations of higher quality with India's increasing integration with the global economy.

OUTLOOK

Mining in India is a major economic activity which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Coal with a proven reserve of 860 billion tonnes is mined the most in the world. At the same time, the demand curve for this sector is always on the rising side. The major reasons are the soaring power demand in India and China, the growing worldwide steel production, and lastly, the increasingly stringent environment regulations. As a prospering economy, India faces energy scarcity as a growing challenge and the coal production is expected to grow at a around 4% during 2014-15. The Indian coal market is set to witness great boost in near future because of the rising government initiatives. Recently, allocation of coal blocks and stake sales in PSU are some of the major steps that were taken by the government to boost the production and investment in the coal industry.

The Indian coal industry, one of the largest in terms of reserve base and production level, has gained significant momentum in the past few years. The industry has attracted government concern and investments. The coal demand has been rising constantly in India due to growth & high demand from major coal consuming sectors, including power, cement and steel. They estimate that coal production will grow at around 4% during 2014-15. It is also anticipated that the demand for thermal coal and coking coal by power and steel sectors, respectively, will gain momentum in near future.

India has 10 percent of the world's coal reserves, trailing only the United States, Russia and China, but a shortfall from local supplies has grown rapidly with an increase in coal-fired power plants and steel makers.

The Real Estate industry has significant linkages with several other sectors of the economy and over 250 associated industries. One Rupee invested in this sector results in 78 paise being added to the GDP of the State. A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times. If the economy grows at the rate of 10% the housing sector has the capacity to grow at 14% and generate 3.2 million new jobs over a decade.

Private equity players are considering big investments, banks are giving loans to builders, and financial institutions are floating real estate funds. Indian property market is immensely promising and most sought after for a wide variety of reasons.

SEGMENT WISE PERFORMANCE:

Company's business comprises two segment viz. Coal Trading Division and Infrastructure division. During the Financial Year 2013-14, there is no turnover from Infrastructure division and entire income from operation of Rs. 3009.10 Millions is from Coal Trading division.

As on March 31, 2014, Coal Trading Division is having Segment Assets of Rs. 1343.27 Millions and Segment liabilities of Rs. 1055.68 Millions and Infrastructure division is having Segment Assets of Rs. 68.07 and Segmen Liabilities of Rs. Nil.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Bills Discounted with Banks	208.560	187.390
Bank Guarantees	11.550	0.000
Collector of Stamp, Khargaon (MP) raised demand u/s. 33 read with section 48(b) of the Indian Stamp Act for Stamp Duty of Rs. 1.06 Million against the Sand Mine Contract allotted to the Company for Maheshwar Group by State Mining Corporation Limited, Bhopal. The Company has filed an appeal before the court of Hon'ble Revenue Board, Gwalior (MP) for setting aside the impugned order so passed by Collector of Stamp. The Management is of the opinion that no provision is required for such liability. An Appeal is pending before Joint Commissioner for the demand raised by Deputy Commissioner of Commercial Tax Surat for the F.Y. 2006-2007 of Rs. 3.67 Millions. The Management is of the opinion that no provision is required for such liability. The Deputy Commissioner of Sales Tax (VAT Adm.) Chandrapur has issued Penalty order of Rs. 0.03 Million under section 61 of MVAT Act towards late submission of Audit report for the financial year 2007-08. The Company did not accept the above demand and filed an appeal before Joint Commissioner of Sales Tax (Appeal), Nagpur. The appeal is pending before the Joint Commissioner. Meanwhile, The Company has paid sum of Rs. 0.01 Million, being part payment towards pending demand, which is pending for decision. The Assistant Commissioner of Sales tax Chandrapur has issued demand notice of interest & penalty of Rs. 2.22 million due to wrongly adjusted refund relating to financial year 2008-09, with VAT liability of financial year 2009-10. The company has not accepted the order and filed writ petition before high court bench of Nagpur. The appeal is pending before high court. Income Tax Department has raised a demand of Rs. 0.11 Million for the assessment year 1996-97. The Company has filed an appeal before appropriate authorities against above demand. The Management is of the opinion that no provision is required for such liability. Income Tax Department has raised demand of Rs. 1.26 Million for the Assessment Year 2008-09 u/s 143(3)/147. The company has not accepted the above demand and filed an appeal before CIT (Appeals) against above order which is pending for decision. Demand Notice from Deputy Commissioner of Customs, Jamnagar: The Customs department has passed demand notices under section 117 of the Customs Act, 1962 towards penalty for non-submission of original documents within time limit. The Company has not accepted the above order and filed an Appeal before the Commissioner Appeals, Jamnagar. Total three orders have been received for the penalty amounting to Rs. 0.07 million. One appeal of Rs. 0.04 million is pending and company is in process of filing appeal against remaining two orders. Demand Order from Customs Department on Classification of Coal (Bituminous Coal): Company has received orders from custom department for differential duty on the coal, considering the "Steam Coal" imported by company as "Bituminous Coal" of Rs. 18.23 million. The Company has not accepted the above orders and is arranging to file appeal. Show Cause Notice from Customs Department on Classification of Coal (Bituminous Coal): Company has received Show Cause Notices (SCN) from custom department for differential duty on the coal, considering the "Steam Coal" imported by company as "Bituminous Coal" of Rs. 4.58 million. The company has filed reply for above show cause notices.

UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED 30TH SEPTEMBER, 2014

(Rs. in Millions)

Sr. No.	Particulars	Quarter Ended		Six Months
		30.09.2014 UNADITED	30.06.2014 UNAUDITED	30.09.2014 UNADITED
1	Net Income From Sales / Services	1664.801	1785.963	1451.112
2	Cost of Sales
	(a) (Increase)/Decrease in Stock in trade	13.011	(567.386)	(88.385)
	(b) Consumption of Raw Material	-	--	-
	(c.) Purchase of Traded Goods	1601.237	2270.795	3872.032
3	Gross Profit ( 1‐2 )	50.553	82.554	133.107
4	General Administrative Expenses	11.395	12.794	24.189
5	Selling & Distribution Expenses	2.324	3.736	6.060
6	Depreciation	0.004	0.000	0.004
7	Operating profit before interest (3) ‐ ( 4+5+6 )	36.830	66.024	102.854
8	Interest	20.866	21.023	418.890
9	Exceptional items	-	--	-
10	Operating profit after interest & Exceptional Items (7‐8‐9)	15.964	45.001	60.965
11	Other Income	4.691	6.201	10.892
12	Profit / (Loss) from ordinary Activities before tax (10‐11)	20.655	51.202	71.857
13	Tax Expenses	7.812	16.613	24.425
14	Net profit/ (loss) from Ordinary Activities after tax (12‐13)	12.843	34.589	47.432
15	Extra‐ordinary Items ( net of tax expenses )	-	--	-
16	Net Profit/ (loss) for the period (14‐15 )	12.843	34.589	47.432
17	Paid‐up Equity Share Capital (Face Value Rs. 10/‐)	132.000	132.000	132.000
18	Reserves excluding Revaluation Reserve (As per Balance Sheet)	-	--	-
19	Earning Per Share
	(a) Basic & Diluted EPS before and after Extraordinary items for the period, (not annualized)	0.97	2.62	3.59
20	Public Shareholding
	‐ Number of Share	4797424	47,97,424	4797424
	‐ Percentage of Holding	36.34	36.34	36.34
21	Promoters and promoter group shareholding
	(a) Pledged/ Encumbered
	‐ Number of Share		---
	‐ Percentage of Share ( as a % of total shareholding of promoter & promoter group)		---
	‐ Percentage of Share ( as a % of total share capital of the company )		---
	(b) Non‐ Encumbered
	‐ Number of Share	8402576	84,02,576	8402576
	‐ Percentage of Share ( as a % of total shareholding of promoter & promoter group)	100.00	100.00	100.00
	‐ Percentage of Share ( as a % of total share capital of the company )	63.66	63.66	63.66

STATEMENT OF ASSETS AND LIABILITIES

(RS. IN MILLIONS)

SOURCES OF FUNDS	30.09.2014 [Unaudited]
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	212.000
(b) Reserves & Surplus	191.099
Total Shareholders’ Funds	403.099
(2) Share Application Money Pending Allotment	0.000
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	0.000
(4) Current Liabilities
(a) Short term borrowings	661.023
(b) Trade payables	2222.485
(c) Other current liabilities	46.966
(d) Short-term provisions	51.857
Total Current Liabilities (4)	2982.331
TOTAL	3385.430
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	0.195
(b) Non-current Investments	8.598
(c) Deferred tax assets (net)	0.016
(d) Long-term Loan and Advances	7.359
(e) Other Non-current assets	0.000
Total Non-Current Assets	16.168
(2) Current assets
(a) Current investments	0.000
(b) Inventories	968.570
(c) Trade receivables	2123.523
(d) Cash and cash equivalents	134.669
(e) Short-term loans and advances	138.252
(f) Other current assets	4.248
Total Current Assets	3369.262
TOTAL	3385.430

NOTE

1. The above results, duly reviewed by the Audit Committee, have been approved by the Board of  Directors in its meeting held on May 22, 2014. The statutory auditors have carried out/completed audit of the results for the year ended on March 31, 2014.

2. The Board of directors has recommended, subject to approval of shareholders, an Equity dividend of Rs.0.50 per share aggregating to Rs.66.00 lacs and preference dividend of 2% aggregating to Rs.16.00 lacs excluding dividend distribution tax

3. EPS for fourth quarter and year ended is calculated after considering appropriation for dividend and dividend distribution tax on presence shares.

4. The Company has not received any Complaint from Investor during the Quarter. There is no Complaint pending at the end of 31st March, 14

5. The Company has operations under two divisions i.e, Coal Trading & Infrastructure/ Trading in land.

6. Previous period/year figures have been rounded off/regrouped/recasted wherever necessary.

SEGMENT‐WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE PERIOD ENDED

(Rs. In Millions)

Sr. No.	Particulars	Quarter Ended	Quarter Ended	Sixth Ended
		30.09.2014 Unaudited	30.06.2014 Unaudited	30.09.2014 Unaudited
1	Segment Revenue
	(a) Coal trading Segment	1664.801	1785.963	966.841
	(b) Infrastructure Segment		--	-
	Total	1664.801	1785.963	966.841
	Less: Inter Segment Revenue		--
	Net Sales from Operations	1664.801	1785.963	966.841
2	Segment Result
	(Profit) / Loss before Tax & interest
	(a) Coal trading Segment	37.094	58.266	17.987
	(b) Infrastructure Segment	-	-
	Total	37.094	58.266	17.987
	Less:
	‐Interest Expenses (Net)	16.439	7.064	1.709
	‐Unallocable Expenses/ (Incomes)	-	--
	Total Profit Before Tax	20.655	51.202	16.278
3	Capital Employed
	(Segment Assets ‐ Seg Liabilities)
	(a) Coal trading Segment	330.706	317.862	290.029
	(b) Infrastructure Segment	72.393	72.392	68.066
	Total	403.099	390.254	358.095

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.68
UK Pound	1	Rs.93.53
Euro	1	Rs.70.75

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUM
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		16

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.