MIRA INFORM REPORT

Report No. :	309129
Report Date :	21.02.2015

IDENTIFICATION DETAILS

Name :	MUKAND LIMITED (w.e.f. 23.03.1989)
Formerly Known As :	MUKAND IRON AND STEEL WORKS LIMITED
Registered Office :	Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.11.1937
Com. Reg. No.:	11-002726
Capital Investment / Paid-up Capital :	Rs. 1470.500 Millions
CIN No.: [Company Identification No.]	L99999MH1937PLC002726
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19254E
PAN No.: [Permanent Account No.]	AAACM5008R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Alloy Steel and Stainless Steel Long Products that feed into the Auto Components, Engineering, Defence and Fastners Industries.
No. of Employees :	1978 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 61000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and losses that company has incurred from its operational activities. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. K. S. Narula
Designation :	Accountant
Contact No.:	91-22-21727500
Date :	03.02.2015

LOCATIONS

Registered Office :	Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-61216666/ 61216629
Fax No.:	91-22-22021174
E-Mail :	investors_cell@mukand.com kjmallya@mukand.com mukandop@bom3.vsnl.net.in co.secretary@mukand.com info@mukand.com
Website :	http://www.mukand.com
Factory 1 :	Thane-Belapur Road, Dighe, Kalwe, Thane – 400605, Maharashtra, India
Tel. No.:	91-22-21727500/ 7700
Fax No.:	91-22-25348179
Factory 2 :	Ginigera, Karnataka – 583228, India
Branch Offices :	Located at : · Bangalore · Chennai · Delhi · Kolkata · Visakhapatnam

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Nirajkumar Ramkrishnaji Bajaj
Designation :	Chairman and Managing Director
Address :	Mount Unique, 13th Floor, 62 Peddar Road, Mumbai – 400026, Maharashtra, India
Date Of Birth/Age :	10.10.1954
Qualification :	B.Com., M.B.A. (Harvard Business School)
Experience :	33 Years
Date Of Appointment :	03.07.1989
DIN No. :	00028261
Name :	Mr. Rajesh Viren Shah
Designation :	Co-Chairman and Managing Director
Address :	7 Janaki Kutir, Juhu Tara Road, Juhu, Mumbai – 400049, Maharashtra, India
Date Of Birth/Age :	01.10.1951
Qualification :	M.A.(Cambridge), M.B.A.(California), P.M.D.(Harvard Business School)
Experience :	37 Years
Date Of Appointment :	03.07.1989
DIN No. :	00033371
Name :	Mr. Suketu Viren Shah
Designation :	Managing Director
Address :	A/52 Darshan Apartments, Mount Pleasant Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Qualification :	B.Com.(Hons.),M.B.A (Harvard Business School)
Experience :	32 Years
Date Of Birth/Age :	04.12.1954
Date Of Appointment :	03.07.1989
DIN No. :	00033407
Name :	Mr. Dhirajlal Shantilal Mehta
Designation :	Director
Address :	301/302 Goragandhi Apartments, 3 Laburnam Road, Gamdevi, Mumbai – 400007, Maharashtra, India
Date Of Birth/Age :	27.04.1936
Date Of Appointment :	22.07.1976
DIN No. :	00038366
Name :	Mr. Vinod Sakarchand Shah
Designation :	Director
Address :	11 Om Surya Vihar Co Op Housing Society Ltd, Road No 25 – B, Sion Matunga Scheme No 6, Mumbai – 400022, Maharashtra, India
Date Of Birth/Age :	07.11.1930
Date Of Appointment :	03.07.1989
DIN No. :	00033327
Name :	Dr. N P Jain, IFS (Retd.)
Designation :	Director
Name :	Mr. Narendra J Shah
Designation :	Director
Name :	Mr. N C Sharma
Designation :	Director
Name :	Mr. Prakash V Mehta
Designation :	Director
Name :	Mr. Pradip P Shah
Designation :	Director
Name :	Mr. Amit Yadav
Designation :	Director

KEY EXECUTIVES

Name :	K J Mallya
Designation :	Company Secretary
MANAGEMENT TEAM
Corporate :	· Niraj Bajaj Chairman and Managing Director · Rajesh V Shah Co-Chairman and Managing Director · Suketu V Shah Joint Managing Director · S B Jhaveri Chief Financial Officer
Steel Division :	· A M Kulkarni Chief Executive (Steel Plant, Thane) · R Sampath Kumar Upto May 2, 2014 Chief Executive (Steel Plant, Ginigera) · B K Tiwari With effect from May 3, 2014 Chief Operating Officer (Steel Plant, Ginigera) · C H Sharma Technical Advisor, Steel · Sidharth Shah Chief of Materials Management · V M Mashruwala Chief of Marketing (Alloy and Stainless Steel) · Virendra K Mital Business Development Director
Industrial Machinery Division :	R Jagannathan Chief Executive

SHAREHOLDING PATTERN

AS ON 31.12.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	41263703	29.18
Bodies Corporate	62467305	44.18
Sub Total	103731008	73.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	103731008	73.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6007	0.00
Financial Institutions / Banks	101095	0.07
Insurance Companies	7244583	5.12
Foreign Institutional Investors	30963	0.02
Sub Total	7382648	5.22
(2) Non-Institutions
Bodies Corporate	9935841	7.03
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	10422236	7.37
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	9291048	6.57
Any Others (Specify)	643080	0.45
Clearing Members	34394	0.02
Non Resident Indians	608686	0.43
Sub Total	30292205	21.42
Total Public shareholding (B)	37674853	26.64
Total (A)+(B)	141405861	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)	141405861	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Alloy Steel and Stainless Steel Long Products that feed into the Auto Components, Engineering, Defence and Fastners Industries.
Products :	Alloy Steel Stainless Steel
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Suppliers :

--

Customers :

--

No. of Employees :

1978 (Approximately)

Bankers :

· Central Bank of India

· Union Bank of India

· Housing Development Finance Corporation Limited

· Export Import Bank of India

· Dena Bank

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Debentures	0.000	202.000
Term Loans : - from Banks	1009.000	2489.800
- from Financial Institutions	1531.900	1190.100
- from Others	639.500	1176.300
SHORT TERM BORROWINGS
Working Capital Loans from Banks	6510.500	6889.500
Total	9690.900	11947.700
SHORT TERM BORROWINGS – SECURED Working Capital Facilities (a) Working Capital Facilities from the Banks and other non-funded facilities are secured by hypothecation of stocks (excluding machinery spares) and book debts. The said facilities are also secured by way of second and subservient pari passu charge against the same assets as given to Trustees for Debentures. The said charge shall be second and subservient to all other first charges created in favour of Trustees for all the series of Debentures and Lenders for their term loans (b) Company has defaulted in repayment of current maturity of Long Term Debt to lenders to the extent of Rs.130.400 Millions (Previous year Rs.315.900 Millions) which has been paid after close of the year.

Banking Relations :	--
Financial Institution :	Bajaj Finance Limited
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Subsidiaries :	· Mukand Global Finance Limited (MGFL) · Mukand International Limited (MIL) · Vidyavihar Containers Limited (VCL) · Mukand Vijayanagar Steel Limited (MVSL) · Mukand International FZE (MIFZE) · Mukand Sumi Metal Processing Limited (MSMPL) w.e.f. 29.10.2012
Other related parties where control exists :	· Mukand Engineers Limited (MEL) · Bombay Forgings Limited (BFL) · Stainless India Limited (SIL) · Hospet Steels Limited (HSL)
Joint Ventures :	Mukand Vini Mineral Limited (MVML)
Other related parties where significant influence exists or where the related party has significant influence on the Company :	· Kalyani Mukand Limited · Lineage Investments Limited (upto 29.03.2013) · Catalyst Finance Limited (upto 29.03.2013) · Econium Investments and Finance Limited (upto 29.03.2013) · Fusion Investments and Financial Services Limited (upto 29.03.2013) · Primus Investments and Finance Limited (upto 29.03.2013) · Conquest Investments and Finance Limited (upto 29.03.2013) · Jamnalal Sons Private Limited (JSPL) · Adonis Laboratories Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
153000000	Equity Shares	Rs. 10/- each	Rs. 1530.000 Millions
7000000	Preference Shares	Rs. 10/- each	Rs. 70.000 Millions
	Total		Rs. 1600.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
146273934*	Equity Shares	Rs. 10/- each	Rs. 1462.700 Millions
5626320	Preference Shares	Rs. 10/- each	Rs. 56.300 Millions
	Total		Rs. 1519.000 Millions

* includes 28,031 Equity Shares which have been kept in abeyance by the Stock Exchange Authorities

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
141405861	Equity Shares	Rs. 10/- each	Rs. 1414.100 Millions
5626320	Preference Shares	Rs. 10/- each	Rs. 56.300 Millions
	Add: Forfeited shares (amounts originally paid up)		Rs. 0.100 Million
	Total		Rs. 1470.500 Millions

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period.

Equity shares	31.03.2014
	Nos. in crore	Rs.in Millions
At the beginning of the period	7.31	731.100
Add : issued during the period	6.83	683.000
Less : bought back during the year	--	--
Outstanding at the end of the period	14.14	1414.100

Preference shares (CRPS)	31.03.2014
	Nos. in crore	Rs.in Millions
At the beginning of the period	0.56	56.300
Add : issued during the period	--	--
Less : bought back during the year	--	--
Outstanding at the end of the period	0.56	56.300

b. Terms / rights attached to equity shares

The Company has only one class of equity share 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 dividends in Indian rupees.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

During the year ended 31 March 2014, the amount of dividend per share recognized as distribution to equity shareholders was Rs. Nil (31 March 2013 : Rs. Nil). In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Terms of redemption of CRPS

Pursuant to the order of the Hon’ble High Court of Judicature at Bombay dated October 14, 2003, the Company had cancelled 22½ equity shares issued and unallotted and reduced 20% of the outstanding equity shares amounting to 56,26,320 equity shares. In lieu of cancelled shares, the Company has issued 56,26,320 0.01% Cumulative Redeemable Preference Shares of Rs.10/- each entitled for Cumulative Preference dividend of 0.01% p.a. and redeemable in five equal annual installments starting from September. 2019. In the event of liquidation of the Company before redemption, the holders of CRPS will have priority over equity shares in the payment of dividend and repayment of capital.

d. The Company does not have any holding company.

e. There are no bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

f. Details of shareholders holding more than 5% shares in the company

Equity Shares of Rs. 10/- each fully paid	31.03.2014
	Numbers	% holding in the class
Jamnalal Sons Private Limited	26295522	18.60
Life Insurance Corporation of India	7228076	5.11
Bajaj Holdings and Investments Limited	8113564	5.74
Jeewan Limited	4785369	3.38
Baroda Industries Private Limited	14326616	10.13
Niraj Bajaj	12887156	9.11
Rajesh V. Shah	7200842	5.09
Suketu V. Shah	7169018	5.07
CRPS of Rs. 10/- each fully paid
Life Insurance Corporation of India	595545	10.58
Jamnalal Sons Private Limited	474143	8.43

As per of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

g. There are no shares reserved for issue under options and contracts / commitments for sale of shares / disinvestment.

h. There are no unpaid calls from any Director and officer.

i. Utilization of the net proceeds of the rights Issue of equity shares:

The Allotment Committee of the Board of Directors of the Company allotted 68291732 equity shares under rights entitlement at a price of Rs.21.00 per share. Net proceeds received amounting to Rs.1434.100 Millions have been utilized towards: i) payment of dues to secured lenders (Banks and Financial Institutions) Rs.700.000 Millions and ii) working capital requirement (inventory) Rs.734.100 Millions.

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	1470.500	787.500	787.500
(b) Reserves & Surplus	19849.700	20032.700	20470.800
(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)	21320.200	20820.200	21258.300
(3) Non-Current Liabilities
(a) long-term borrowings	11080.900	8567.200	7741.900
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	138.600	120.300	121.900
(d) long-term provisions	356.800	300.500	284.900
Total Non-current Liabilities (3)	11576.300	8988.000	8148.700
(4) Current Liabilities
(a) Short term borrowings	7876.400	8846.100	8405.500
(b) Trade payables	8502.400	6558.500	7327.200
(c) Other current liabilities	6470.300	6393.100	4387.700
(d) Short-term provisions	42.900	29.100	45.300
Total Current Liabilities (4)	22892.000	21826.800	20165.700
TOTAL	55788.500	51635.000	49572.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	24857.000	24071.500	23896.500
(ii) Intangible Assets	2.400	3.800	4.700
(iii) Capital work-in-progress	502.800	1461.000	1042.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2509.900	2278.100	1096.700
(c) Deferred tax assets (net)	421.500	82.400	0.000
(d) Long-term Loan and Advances	1255.900	1124.900	1228.800
(e) Other Non-current assets	482.800	482.800	482.800
Total Non-Current Assets	30032.300	29504.500	27751.700
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	12351.700	10346.400	9963.100
(c) Trade receivables	9022.300	7923.100	8769.800
(d) Cash and cash equivalents	848.900	748.000	786.900
(e) Short-term loans and advances	1925.600	1664.200	2271.800
(f) Other current assets	1607.700	1448.800	29.400
Total Current Assets	25756.200	22130.500	21821.000
TOTAL	55788.500	51635.000	49572.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	25395.800	21262.400	25659.600
		Other Income	333.000	108.700	98.900
		TOTAL (A)	25728.800	21371.100	25758.500
Less	EXPENSES
		Cost of Materials Consumed	13156.400	11212.400	13517.000
		Purchases of Stock-in-Trade	289.700	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1758.300)	(611.300)	(197.700)
		Employees benefits expense	1455.200	1365.300	1318.500
		Other expenses	10506.700	8324.900	9772.800
		Expenditure transferred to Capital Accounts / Capital Work-in-Progress	(57.600)	(155.200)	(44.200)
		Exceptional Items	254.400	(1083.300)	0.000
		TOTAL (B)	23846.500	19052.800	24366.400
Less	PROFIT/ [LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1882.300	2318.300	1392.100
Less	FINANCIAL EXPENSES (D)		2438.900	2153.800	1818.700
	PROFIT/ [LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(556.600)	164.500	(426.600)
Less	DEPRECIATION/ AMORTISATION (F)		670.400	641.500	657.200
	PROFIT/ [LOSS] BEFORE TAX (E-F) (G)		(1227.000)	(477.000)	(1083.800)
Less	TAX (H)		(346.900)	(82.400)	(148.800)
	PROFIT/ [LOSS] AFTER TAX (G-H) (I)		(880.100)	(394.600)	(935.000)
	EARNINGS IN FOREIGN CURRENCY
		Exports (F.O.B. Value)	1239.400	1518.300	2169.500
		Dividend	0.000	2.700	2.300
		Income from Engineering Contracts	3.900	5.300	3.100
		Others (represents Management fees)	1.800	1.600	1.600
	TOTAL EARNINGS		1245.100	1527.900	2176.500
	IMPORTS
		Raw Materials	4356.000	2960.400	3834.500
		Stores, Spare Parts, Components & Fuel	613.600	391.800	615.900
		Goods for trade	0.000	2.000	0.000
		Capital Goods	70.400	249.700	424.500
	TOTAL IMPORTS		5040.000	3603.900	4874.900
	Earnings/ [Loss] Per Share (Rs.)		(11.54)	(5.40)	(12.79)

QUARTERLY RESULTS

PARTICULARS	30.06.2014 (Unaudited)	30.09.2014 (Unaudited)
Type	1^st Quarter	2^nd Quarter
Net Sales	6783.800	7638.400
Total Expenditure	6098.000	6776.000
PBIDT (Excl OI)	685.800	862.400
Other Income	132.000	34.500
Operating Profit	817.800	897.000
Interest	596.000	657.300
Exceptional Items	(31.100)	(31.100)
PBDT	190.600	208.500
Depreciation	184.500	184.900
Profit Before Tax	6.100	23.600
Tax	2.200	06.200
Provisions and contingencies	0.000	0.000
Profit After Tax	3.900	17.500

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	(3.42)	(1.85)	(3.63)
Net Profit Margin (PBT/Sales)	(%)	(4.83)	(2.24)	(4.22)
Return on Total Assets (PBT/Total Assets}	(%)	(2.34)	(1.00)	(2.28)
Return on Investment (ROI) (PBT/Networth)		(0.06)	(0.02)	(0.05)
Debt Equity Ratio (Total Debt/Networth)		0.89	0.84	0.76
Current Ratio (Current Asset/Current Liability)		1.13	1.01	1.08

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	787.500	787.500	1470.500
Reserves & Surplus	20470.800	20032.700	19849.700
Net worth	21258.300	20820.200	21320.200
long-term borrowings	7741.900	8567.200	11080.900
Short term borrowings	8405.500	8846.100	7876.400
Total borrowings	16147.400	17413.300	18957.300
Debt/Equity ratio	0.760	0.836	0.889

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	25659.600	21262.400	25395.800
		(17.137)	19.440

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	25659.600	21262.400	25395.800
Profit/ [Loss]	(935.000)	(394.600)	(880.100)
	(3.64%)	(1.86%)	(3.47%)

LOCAL AGENCY FURTHER INFORMATION

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

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Presentation Date: 28.05.2013

Lodging No: NMSL/714/2013 Filing Date: 26.03.2013 Reg. No.: NMS/605/2013 Reg. Date: 04.04.2013

Main Matter

Lodging No: SL/605/2010 Reg. No.: S/516/2010

Petitioner: MUMBAI INTERNATIONAL AIRPORT PVT. LIMITED. Respondent: MUKAND. AND 2 ORS

Resp. Adv.: N V SANGLIKAR FOR DEFT NO 1 (0)

District: MUMBAI

Bench: SINGLE

Status: Pre-Admission Category: NOTICE OF MOTION.

Last Date: 23.06.2014 Stage: NOTICE OF MOTION FOR HEARING [ORIGINAL SIDE MATTERS]

Last Coram: PROVISIONAL BOARD

Act: Code of Civil Procedure 1908

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10508672	16/06/2014	500,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, CHANDERMUKHI, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	C10371581
2	10494512	07/05/2014	150,000,000.00	BAJAJ FINANCE LIMITED	AKURDI PUNE-, PUNE, MAHARASHTRA - 411035, INDIA	C04501391
3	10496277	03/05/2014	500,000,000.00	UNION BANK OF INDIA	UNION BANK BHAVAN, GROUND FLOOR, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	C04781167
4	10484101	27/02/2014	140,000,000.00	BAJAJ FINANCE LIMITED	AKURDI PUNE -411035, MAHARASHTRA, INDIA	C00155648
5	10442545	17/07/2013	750,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B81895773
6	10396621	31/12/2012 *	500,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B68239839
7	10389398	09/11/2012	80,000,000.00	WINRO COMMERCIAL (INDIA) LIMITED	209/210, ARCADIA BUILDING, 2ND FLOOR, PLOT NO. 195, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA	B62910583
8	10384912	22/10/2012	370,000,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA	B61470894
9	10379885	10/10/2012 *	500,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B61366357
10	10352896	15/04/2012	250,000,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA	B38653804
11	10353101	15/04/2012	250,000,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA	B38654703
12	10345594	03/04/2012	250,000,000.00	BAJAJ FINANCE LIMITED	4TH FLOOR, BAJAJ FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE, MAHARASHTRA - 411014, INDIA	B36301315
13	10303605	01/08/2011	175,000,000.00	BAJAJ FINANCE LIMITED	4TH FLOOR, BAJAJ FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE, MAHARASHTRA - 411014, INDIA	B19338664
14	10273919	20/01/2014 *	800,000,000.00	EXPORT IMPORT BANK OF INDIA	21 FLOOR, CENTRE ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B94842358
15	10249773	23/10/2010	350,000,000.00	CORPORATION BANK	LARGE CORPORATE BRANCH, 301-302, EAGLES FLIGHT, SUREN ROAD, ANDHERI (E), MUMBAI, MAHARASHTRA - 400093, INDIA	A97753776
16	10193562	28/08/2013 *	2,750,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, CHANDER MUKHI BUILDING,  GROUND FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B82931536
17	10163749	05/08/2009 *	1,000,000,000.00	CENTRAL BANK OF INDIA	CHANDERMUKHI, NARIMAN POINT, MUMBAI, MAHARASHTRA  - 400021, INDIA	A67443333
18	10153984	22/06/2010 *	234,214,817.00	BAJAJ AUTO FINANCE LIMITED	AKURDI PUNE-, MUMBAI - PUNE ROAD, PUNE, MAHARASHTRA, INDIA	A87782009
19	10024169	16/06/2007 *	500,000,000.00	DENA BANK	C-10, G BLOCK, BANDRA KURLA COMLEX, BANDRA(E), MUMBAI, MAHARASHTRA - 400051, INDIA	A18223248
20	90236515	07/02/2006	100,000,000.00	INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED	PLOT C-22;BANDRA KURLA COMPLEX, BANDRA, MUMBAI, MAHARASHTRA, INDIA	-
21	90232897	16/12/2005	354,300,000.00	CANARA BANK	CANARA BANK BUILDING, 2ND/3RD FLOOR; ADIMARZBAN  PATH; BALLARAD ESTATE, MUMBAI, MAHARASHTRA - 400038, INDIA	-
22	90236490	16/12/2005	730,100,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER; 5TH FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA	-
23	80065070	11/09/2004	3,000,000,000.00	THE WESTERN INDIA TRUSTEE & EXECUTOR COMPANY LIMITED	161, MITTAL COURT-C JAMNALAL BAJAJ MARG, NARIMAN  POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
24	80005610	05/03/2013 *	11,310,000,000.00	DENA BANK	C-10, G-BLOCK, CORPORATE BUSINESS BRANCH, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA - 400051, INDIA	B71068076

* Date of charge modification

UNSECURED LOANS

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Fixed Deposits	804.300	1025.600
Long term loans from Companies	7086.900	2469.500
Sales Tax Deferment Loan	9.300	13.900
SHORT TERM BORROWINGS
Short Term Loans from Companies	1365.900	1956.600
Total	9266.400	5465.600

FINANCIAL RESULTS

The gross revenue from operations for the year increased by 20% to Rs.28120.000 Millions as against Rs.23480.000 Millions in the previous year mainly on account of increase in sale of special and alloy steel.

Loss before exceptional items has reduced to Rs.972.600 Millions as against Rs.1560.300 Millions in the previous year due to improved operations in the last quarter of the current year.

ECONOMY

Delivering higher economic value has been a challenge not only for corporations but also nations around the globe. Although it continues to remain a challenge for us in the year ahead, indications are that it may be a little less formidable.

Global activity has broadly strengthened and is expected to improve further in the year 2014-15, with most of the impetus coming from developing economies. The global GDP rate for the year 2013 was marginally lower at 3.0% while much of this growth was witnessed in the emerging and developing markets which was at 4.7%. The Indian GDP rate for the same period stood at 4.4%

The Indian industry was faced with multiple unfavourble agents such as low global demand, stubborn inflation, high interest rates, fluctuating currency markets and oscillating policies which together resulted in a lacklustre economic growth in the country. The continuing deterioration in the global growth has affected the Indian economy more than some of the other developing economies, possibly due to India’s shift towards a service led economy from the traditional labour and capital intensive manufacturing economy.

STEEL INDUSTRY

Global as well as Indian steel makers continue to face the problem of supply outpacing demand. The Indian steel production marked a growth of 4.1% while persistent weakness in demand from key end-user industries such as automobiles, consumer durables and infrastructure led to the domestic steel consumption registering only a marginal growth of 0.6% in the financial year 2014.

The mismatch in domestic supply and demand necessitated higher steel exports, which also benefited from favourable exchange rate conditions. This led to an export growth of 4.1% and the automobile exports also grew by 7.21%.

RELATED INDUSTRY

AUTOMOBILE

Slow rise in per capita income, high fuel prices along with high taxes resulted in a slowdown of the automobile industry. According to the Society of Indian Automobile Manufacturers (SIAM), the overall domestic sales during April-March 2014 grew marginally by 3.53 % over the same period last year riding mainly on the growth in scooter and motorcycle sales.

The sales of two wheelers during the year April-March 2014 registered a growth of 7.31% over the previous year, while the sales of passenger vehicles declined by 6.05% over the same period.

SPECIALITY STEEL DIVISION

The net turnover of the steel division was Rs.23710.000 Millions for the year FY 2014 as compared to Rs.19120.000 Millions for the same period in the previous year and the profit before interest was Rs.840.000 Millions compared to profit before interest of Rs. 440.000 Millions in the previous year.

The specialty steel division of the Company recorded a rise in sale of 24% over the previous year. The enhanced production of steel was mainly due to the improved availability of iron ore and also the company’s shift towards using iron ore fines after the commissioning of the sintering facility in Ginigera. The new steel products, especially import substitutes, developed successfully by the company also contributed to the growth in sales.

Sales in the value added segment, viz., special steel wire rods and black bars, also marked an increase in the year that was and the company hopes to further increase its sales in these segments.

The company introduced several cost saving measures while simultaneously increasing its capacity through improved processes and the introduction of balancing facilities. The commissioning of the sinter facility in Ginigera

enabled the company to use 50% iron ore fines in lieu of the more expensive iron ore lumps. The hot blast stove and pulverised coal injection systems were also commissioned thereby reducing the consumption of coke. The entire fuel requirements in the Ginigera facility are currently met from flue gasses of the blast furnaces. The company has been able to take advantage of all these facilities since March 2014.

Mukand has the capability to use 0% to 100% stainless steel scrap thus giving it the flexibility to link its procurement to prevailing nickel prices. The hardening and tempering facilities have enabled the company to expand its customer base to the oil and gas sectors as well.

These cost saving measures coupled with the commitment and effort of the employees, gave a boost to the Company’s production.

The Company has continued to be actively involved in Total Quality Management activities and continues to win awards in quality and delivery from industry bodies and customers.

Despite the lacklustre performance of the automobile industry in the year that has gone by, several auto makers have announced green field capacity expansion plans in India in the year ahead.

The Company is confident of further improvement in performance in all the areas, viz., production, productivity, value added product mix, turnover and costs, thereby achieving higher operating margins in the year in progress.

The European markets are also picking up while the Company hopes to considerably increase its presence in the South East Asian markets with the help of Sumitomo Corporation, Japan.

FINANCE

Over the years, the total concessional loan under Corporate Debt Restructuring (CDR) had reduced considerably through repayments as per schedule. The Company was forced to borrow from bankers and other lenders at higher interest rates to fund the loan repayments and working capital requirements due to lack of retained earnings.

During the last two years, the Company incurred capital expenditure of Rs.1700.000 Millions to install facilities to reduce costs, increase productivity and increase sales of value added products. The financing for this was done through long term borrowings.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
(i) Disputed matters in appeal/contested in respect of:
- Income Tax * * included in this amount (not provided in the Accounts) is the liability under Sec 115JB of the Income Tax Act, 1961 for Assessment Year 2005-06 as the Company’s appeal is pending disposal. Company places reliance on certain judicial pronouncements and has also obtained a legal opinion on the matter.	224.00	217.900
- Excise Duty, Customs Duty etc.	39.500	38.000
- Sales Tax, Works Contract Tax etc. ** ** In the matter of certain ex-parte assessments completed by Commercial Tax Officer in the State of Uttar Pradesh, Company is advised that liability if any, that may arise will be determined after the matter is remanded to the Assessing Officer and on completion of reassessment proceedings and therefore, the same is not included herein.	49.000	56.300
- Other matters	2.400	2.400
(ii) Claims against the Company not acknowledged as debt as these are disputed and pending disposal at various fora. The Company has taken legal and other steps to protect its interest in respect of these matters, which is based on legal advice and/or precedents in its own/other cases. It is not possible to make any further determination of the liability which may arise in these matters.	155.000	181.800
(iii) Bills discounted with the Bankers and others Sale Bills discounted	39.100	109.600
(iv) Guarantees and Counter guarantees given by the Company on behalf of :- -Other Companies	701.500	846.800
(v) Bonds / Undertakings given by the Company under concessional duty/ exemption to Customs / Excise Authorities (Net of redemption applied for)	6.600	6.600
(vi) Bonds given by the Company against import of machinery under EPCG Scheme (Net of redemption applied for)	143.000	347.800
(vii) Demand for Annual Bonus for the financial years 1995-96 to 2006-07 by Staff and Officers’ Association is pending at different stages in proceedings under The Industrial Disputes Act, 1947. Bulk of these employees are statutorily not covered by The Payment of Bonus Act, 1965 and many of the employees are also not covered by The Industrial Disputes Act, 1947. Liability arising there from cannot therefore be determined at present. (viii) Government of Maharashtra had served a Demand Notice on the Company for payment of electricity duty for power generated during the period 01.04.2000 to 30.04.2005 and penal interest thereon in Company’s Captive Power Plant amounting to Rs.142.700 Millions. The Writ Petition filed by the Company was disposed by the Hon’ble Bombay High Court on 7th November, 2009 quashing the said Demand Notice. Government of Maharashtra has however, filed an appeal in the Supreme Court of India against the aforesaid judgment of High Court. (ix) There have been delays in payment of tax deducted at source in earlier years and also in FY2013-14. Interest payable on delays has been accounted for in respect of cases where appropriate orders have been received from Income Tax authorities or at the time of Filing the Quarterly TDS Returns. (x) A claim towards difference in price of calibrated iron ore for the period 1st April, 2006 to 28th February, 2007 amounting to Rs.330.700 Millions has been raised by a supplier in March 2007. The Company has been legally advised that the supplier cannot seek this price revision under a concluded agreement and hence no provision is made in the Accounts for the same. The issue along with method of review and re-fixing of price of calibrated iron ore effective on 1st of April each year in terms of agreement is referred to an arbitral tribunal whose award was pronounced on 28th February 2014. In terms of the said award, the supplier is directed to re-compute amount payable by the Company. Pending receipt of the revised claim, the final liability arising there from is not ascertainable. Moreover, the said supplier has also unilaterally increased the price of calibrated iron ore w.e.f. 1st April, 2007 and thereafter w.e.f. 1st April, every year. This issue too was settled by the aforesaid arbitral tribunal. In terms of the said award, the Company is required to submit certain details to the supplier for re-computing its claim in terms of the award. However, pending such determination of final price, the supplier has raised invoices at an ad-hoc interim mutually agreed price on the marketing contractor who in turn, has billed the Company at the same price and which liability, has been fully accounted for. An appeal is also being preferred for challenging the said arbitration award.

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Leasehold Land

· Railway Siding

· Buildings and Roads

· Plant and Machinery

· Furniture, Fixtures, etc.

· Office Machinery

· Vehicles

Intangible Assets

· Software

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS AND QUARTER ENDED DECEMBER 31,2014

(Rs. In Millions)

	Particulars	Quarter ended		Nine months ended
		31-Dec-14	30-Sep-14	31-Dec-14
		Unaudited	Unaudited	Unaudited
(1)	INCOME FROM OPERATIONS
a)	Gross Sales	7888.850	8426.636	23794.177
	Less : Excise Duty Recovered	757.942	847.889	2352.935
	Net Sales	7130.908	7578.747	21441.242
b)	Other Operating Income	47.118	59.649	158.992
	Total Income from Operations	7178.026	7638.396	21600.234
(2)	EXPENSES
a)	Cost of materials consumed	3449.654	3603.898	10558.205
b)	Purchase of Stock in Trade	(0.175)	5.868	8.210
c)	Changes in inventories of finished goods and work-in-progress	(399.846)	(104.375)	(899.643)
d)	Stores, Spares, Components, Tools, etc. consumed	1021.957	1141.906	3207.799
e)	Power & Fuel	508.324	481.032	1494.558
f)	Employee benefits expense	396.311	374.883	1148.186
g)	Foreign Exchange (Gain)/Loss (net)	64.647	78.822	193.547
h)	Depreciation and Amortisation expenses	187.541	184.915	556.970
i)	Other Expenditure	1193.329	1193.954	3397.339
	Total Expenses	6421.742	6960.903	19665.171
(3)	Profit/(Loss) from Operations before Other Income, Finance Costs, & Net Exceptional income/ (Expenditure)	756.284	677.493	1935.063
(4)	Other Income	19.255	34.544	185.760
(5)	Profit/(Loss) from Ordinary Activities before Finance Costs & Net Exceptional income/ (Expenditure)	775.539	712.037	2120.823
(6)	Less : Finance Costs (net)	696.293	657.294	1949.623
(7)	Profit / (Loss) from ordinary activities before Net Exceptional income / (Expenditure)	79.246	54.743	171.200
(8)	Net Exceptional Income / (Expenditure)	(31.129)	(31.129)	(93.387)
(9)	Profit / (Loss) before Tax	48.117	23.614	77.813
(10)	Tax Expense	12.943	6.165	21.273
(11)	Profit / (Loss) after Tax	35.174	17.449	56.540
(12)	Paid-up Equity Share Capital (Face value Rs 10/- per share)	1414.174	1414.174	1414.174
(13)	Reserves (excluding Revaluation Reserve)
(14)	Earnings per Share (EPS) - Rs	0.00	0.00	0.00
	Basic and Diluted EPS (in Rs.)
	- Including exceptional items	0.25	0.12	0.40
	- Excluding exceptional items	0.47	0.34	1.06
	Part - II
A	PARTICULARS OF SHAREHOLDING
(1)	Public Shareholding
	Number of Shares	37,674,853	37,674,853	37,674,853
	Percentage of Shareholding	26.64%	26.64%	26.64%
(2)	Disclosure in respect of pledged shares of Promoters and Promoter Group
	Shares held by Promoters & Promoter Group - Nos. (A)	103,731,008	103,731,008	103,731,008
	Percentage of Total Share Capital	73.36%	73.36%	73.36%
	Pledged / Encumbered - No. of Shares	40,442,751	29,767,790	40,442,751
	Percentage of Total Share Capital	28.60%	21.05%	28.60%
	Percentage of (A)	38.99%	28.70%	38.99%
	Non-Encumbered - No. of Shares	63,288,257	73,963,218	63,288,257
	Percentage of Total Share Capital	44.76%	52.31%	44.76%
	Percentage of (A)	61.01%	71.30%	61.01%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	13
	Disposed off during the quarter	13
	Remaining unresolved at the end of the quarter	Nil
	SEGMENT REVENUE (net of Excise Duty)
1)	Steel	6837.401	7202.675	20429.427
2)	Power Generation	88.030	115.040	285.793
3)	Industrial Machinery	343.659	448.954	1177.797
4)	Road Construction	0.020	0.000	12.511
	Sub-total	7269.110	7766.669	21905.528
	Less : Inter Segment Revenue	(91.084)	(128.273)	(305.294)
	Total Segment Revenue (net of Excise Duty)	7178.026	7638.396	21600.234
	SEGMENT RESULT
1)	Steel	715.663	569.008	1643.040
2)	Power Generation	71.421	100.611	241.452
3)	Industrial Machinery	(0.233)	37.482	133.173
4)	Road Construction	(5.150)	(4.762)	(10.684)
	Less : Inter segment margin	(0.250)	(1.792)	(2.042)
	Total Segment Result	781.451	700.547	2004.939
	Add / (Less) :
	Other net un-allocable :
	Income	19.255	34.544	185.760
>	Expenditure	25.167	23.054	69.876
	Other net un-allocable (expenditure) / income	(5.912)	11.490	115.884
	Profit /(Loss) before Finance costs	775.539	712.037	2120.823
	Less : Finance costs (net)	696.293	657.294	1949.623
	Net Exceptional - Income / (Expenditure)	(31.129)	(31.129)	(93.387)
	Profit / (Loss) before tax	48.117	23.614	77.813
	Capital Employed as on	31-Dec-14	30-Sep-14	31-Dec-14
1)	Steel	35728.450	34899.923	35728.450
2)	Power Generation	436.689	447.230	436.689
3)	Industrial Machinery	5294.883	5390.949	5294.883
4)	Road Construction	1283.917	1338.105	1283.917
5)	Unallocable (net)	(21520.897)	(20839.735)	(21520.897)
	Total Net Capital Employed	21223.042	21236.472	21223.042

Notes:

1. Pursuant to the Companies Act, 2013 (the Act), becoming effective from 1st April 2014, the Company has reworked depreciation with reference to estimated useful life of fixed assets prescribed under Schedule-II to the Act or useful life of fixed assets as per technical evaluation. As a result, the charge for depreciation is higher by Rs.109 Lakhs for the quarter ended 31st December 2014. Further, based on transitional provision in Note 7(b) of Schedule-II, an amount of Rs.831 Lakhs (net of deferred tax) has been adjusted on 30th June 2014 against the retained earnings.

2. Management's response to the observations of the auditors on the financial statements for the year ended 31.03.2014 :

1. Advances due from and investments made in Vidyavihar Containers Limited (VCL), aggregating Rs. 6,713 Lakhs as at 31st March 2014 now stand at Rs. 5,213 Lakhs as at 31st December 2014. The Company, barring unforeseen circumstances, relies upon the estimation of future realizable values of the financial assets of VCL to recover its Exposures;
2. As regards investments made in Mukand Global Finance Limited (MGFL), aggregating Rs.2,625 Lakhs, the recovery is dependent upon realization of the financial assets that MGFL stands invested into at the close of the year and future earnings from the business activities of MGFL. The management considers the 'Exposure' to be 'Good' and adequately covered. Any ultimate shortfall if any, in the realization is not determinable at present.
3. The investments in and debts / advances due from Bombay Forgings Limited (BFL), which stood at Rs.7,990 Lakhs as at 31.03.2014 has increased to Rs.8,826 Lakhs as at 31.12.2014 due to supplies on credit. Recovery towards these supplies will be made on due dates. The management, considering its long term view on the 'Exposures', relies upon the valuation of unencumbered fixed assets of BFL as at 31st March, 2014 which is at Rs.7,034 Lakhs. It further relies upon the value of current assets and future earnings from the ongoing business of BFL. The management considers the balance 'Exposures' to be 'Good' at the close of the quarter and adequately covered and barring unforeseen circumstances expects full realisability of the same in future.
4. Debts / advances recoverable from Stainless India Limited (SIL), which aggregated Rs.730 Lakhs as at 31st March 2014, has remained at Rs.730 Lakhs as at 31.12.2014. The management relies upon the realization from Land of SIL. The management considers the balance 'Exposures' to be 'Good' at the close of the Quarter and adequately covered and barring unforeseen circumstances expects full realisability of the same in future.
5. The Company in previous years executed road construction projects in the state of Uttar Pradesh with National Highway Authority of India (NHAI) along with Centrodorstroy (CDS), Russia. The exposure on this account as at 31.03.2014 aggregated Rs.13,478 Lakhs and is now at Rs.12,681 Lakhs as at 31.12.2014. The outcome of the Road Construction activity cannot be estimated with certainty at present. The amount of total claims with NHAI now aggregates Rs.24,568 Lakhs (as at 31.03.2014, Rs.22,528 Lakhs). Bulk of these claims are now being processed at various appellate fora. It is the opinion of the management that in view of the substantially large claims to be settled progressively over a period of next 2 to 3 years, losses currently expected are already recognized till the close of the quarter.

3. Other income for the nine months ended 31st December 2014 of Rs.1,858 Lakhs includes surplus amounting to Rs.1,099 Lakhs on sale of part of Office premises as compared to Rs.2,891 Lakhs for nine months ended 31st December'2013 which included surplus amounting to Rs.1,844 Lakhs on sale of residential premises.

4. Net Exceptional Expenditure of Rs.311 Lakhs represents proportionate charge for the Quarter of Adhoc amount payable to CDR Lenders. During June 2013, the Company arrived at settlement with the Corporate Debt Restructuring members for an adhoc amount of Rs.2,490 Lakhs payable in monthly installments till the maturity of the loans without any further interest thereon. This settlement was arrived at under recompense clause of CDR scheme.

5. The Board of Directors of the Company in its meeting held on 22nd December, 2014 has decided to hive off Company's alloy steel business to a subsidiary subject to necessary approvals. In this regard, Company has sent a notice dated 22nd December, 2014 to shareholders. The Company expects results of a postal ballot by 18th February, 2015.

6. Figures in respect of previous year / quarter have been regrouped / recast wherever necessary.

7. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 11th February, 2015. Statutory Auditors have carried out a "Limited Review" of the financial results shown above.

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.62.26
UK Pound	1	Rs.95.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.