MIRA INFORM REPORT

Report No. :	309466
Report Date :	24.02.2015

IDENTIFICATION DETAILS

Name :	SRIKALAHASTHI PIPES LIMITED (w.e.f. 29.09.2014)
Formerly Known As :	LANCO INDUSTRIES LIMITED
Registered Office :	Rachgunneri Village, Srikalahasthi Mandal, District Chittoor - 517641, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.11.1991
Com. Reg. No.:	01-013391
Capital Investment / Paid-up Capital :	Rs. 397.636 Millions
CIN No.: [Company Identification No.]	L74999AP1991PLC013391
TAN No.: [Tax Deduction & Collection Account No.]	HYDL00513C
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACL4108M
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject’s main business is manufacturing and selling pipes, subject is also manufacturing and selling Cement and producing Pig Iron and LAM Coke for captive use.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

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	CARE
Rating	Long Term Bank Facilities: A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	July 15, 2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	July 15, 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 DENIED

Management Non Co-operative (91-8578-286650)

LOCATIONS

Registered Office/ Factory :	Rachagunneri Village, Srikalahasthi Mandal, District Chittoor– 517 641, Andhra Pradesh, India
Tel. No.:	91-8578-286650-55
Fax No.:	91-8578-286657
E-Mail :	gdsaini@lancoindustries.com info@lancoindustries.com accounts@lancoindustries.com
Website :	http://www.lancoindustries.com
Location :	Owned
Marketing Head Office :	No.148/150 (Old No. 98/99), Luz Church Road, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-24674900
Fax No.:	91-44-24995229
E-Mail :	homarketing@lancoindustries.com

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Mayank Kejriwal
Designation :	Managing Director
Name :	Mr. G. Maruthi Rao
Designation :	Director
Name :	Mr. Gouri Shankar Rathi
Designation :	Director
Date of Birth/Age :	09.01.1950
Qualification :	B.Com (Hons.), FCS, LLB
Special Expertise :	Expertise in general Administrative management and Marketing.
Date of Appointment :	08.06.2005
Name :	Mr. S.Y. Rajagopalan
Designation :	Director
Name :	Mr. R.K. Khanna
Designation :	Director
Date of Birth/Age :	19.10.1952
Qualification :	Graduate in Management, Finance, Certificate in Infrastructure and Housing Finance from USA
Special Expertise :	Expertise in Financial Management and Infrastructure development.
Date of Appointment :	09.02.2013
Directorship in other Public Limited Companies :	Shivshahi Punaravasan Prakalp Limited, Mumbai
Name :	Mr. A. Joseph Kumar
Designation :	Director (Nominee of IDBI)
Name :	Smt. Anita Rajendra IAS
Designation :	Director (Nominee of APIDC)

KEY EXECUTIVES

Name :	Shri V. Poyyamozhi
Designation :	Chief Operating Officer
Name :	Shri Atosh R Surana
Designation :	Sr. General Manager - Finance And Company Secretary

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
Bodies Corporate	20193178	50.78
Sub Total	20193178	50.78
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	20193178	50.78
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3625	0.01
Financial Institutions / Banks	63904	0.16
Central Government / State Government(s)	244200	0.61
Foreign Institutional Investors	18962	0.05
Sub Total	330691	0.83
(2) Non-Institutions
Bodies Corporate	7495269	18.85
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	6585324	16.56
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4336063	10.90
Any Others (Specify)	823070	2.07
Non Resident Indians	760477	1.91
Clearing Members	62593	0.16
Sub Total	19239726	48.39
Total Public shareholding (B)	19570417	49.22
Total (A)+(B)	39763595	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	39763595	100.00

BUSINESS DETAILS

Line of Business :

Subject’s main business is manufacturing and selling pipes, subject is also manufacturing and selling Cement and producing Pig Iron and LAM Coke for captive use.

Products :

ITC Code No.	Product Description
7303.00	D I Pipes
2502.29	Cement

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Information declined by the management.

Bankers :

· ICICI Bank Limited

· HDFC Bank Limited

· IDBI Bank Limited

· Standard Chartered Bank

· Punjab National Bank

· Bank of India

· Andhra Bank

· Yes Bank

· Indusind Bank Limited

Facilities :

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
	(Rs. In Millions)
LONG TERM BORROWINGS:
FROM BANKS
Rupee term loans	506.250	137.500
External commercial borrowing	1239.993	1362.930
SHORT TERM BORROWINGS:
WORKING CAPITAL LOANS – FROM BANKS
Rupee loan	1341.750	1385.209
Foreign currency loan	1013.984	1381.873
Total	4101.977	4267.512

LONG TERM BORROWINGS

Terms of Repayment and rate of interest:

a) Rupee Term Loan of Rs. 500.000 Millions is repayable in 16 Quarterly installments of Rs. 31.250 Millions each starting from 31/03/2015 and it carries an interest @ 11% p.a. payable monthly.

b) Rupee Term Loan of Rs. 62.500 Millions is repayable in 2 Quarterly installments of Rs. 31.250 Millions each and it carries an interest @ 11.82% p.a. payable monthly.

c) Rupee Term Loan of Rs. 75.000 Millions repayable in 8 Quarterly installments of Rs. 9.375 Millions each and it carries an interest @ 13.50% p.a. payable monthly.

d) Foreign Currency loan of Rs. 934.524 Millions (US$ 15.5998 Millions) is repayable in 13 half yearly installments of US$ 1200600 and carries an interest at LIBOR plus 4.6494% p.a payable half yearly.

e) Foreign Currency loan of Rs. 569.145 Millions (US$ 95 Lakhs) is repayable in 7 half yearly installments of US$10 Lakhs each on 22/5/2014, 22/11/2014, 22/5/2015, US$ 15 Lakhs each on 22/11/2015, 22/5/2016, 22/11/2016 and US$ 20 Lakhs on 22/5/2017 and carries an interest at LIBOR plus 3.7455% p.a payable half yearly.

f) Sales tax Deferment – Rs. 6.128 Millions is due on 20/09/2014 and is interest free.

Nature of security:

Rupee term loan of Rs. 500.000 Millions is secured by way of first pari-passu charge on the movable & immovable Fixed Assets of the company and subservient charge of raw materials, semi-finished goods and finished goods, consumables, stores and spares, book debts, both present and future.

Rupee term loans of Rs. 137.500 Millions and Foreign Currency loans from Banks are secured by way of first pari-passu charge on the movable & immovable Fixed Assets of the company both present and future.

SHORT TERM BORROWINGS

Nature of Security and rate of interest

Working Capital facilities availed from banks are secured by hypothecation of raw materials, semi-finished goods and finished goods, consumables, stores and spares, book debts, both present and future of the company and rank pari-passu among themselves and the rate of interest ranges from 10% to 13.5% p.a. and are payable on demand.

Banking Relations :	---
Auditors :
Name :	K.R. Bapuji and Company Chartered Accountants
Address :	Hyderabad, Andhra Pradesh, India
Memberships :	Not Available
Collaborators :	Not Available
Solicitors :	Khaitan and Company
Associate Company :	Electrosteel Castings Limited Electrosteel Steels Limited
Enterprise where other directors have significant influence or control :	Lanco Infratech Limited*

Note :

*Shri. L. Madhusudhana Rao, Shri. L. Sridhar and Shri. G. Bhaskara Rao directors of the Company are interested in Lanco Infratech Limited.

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
53000000	Equity Shares	Rs.10/- each	Rs.530.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39763595	Equity Shares	Rs.10/- each	Rs.397.636 millions

Reconciliation of Shares outstanding at the beginning and at the end of the reporting period

Particulars	As at 31st March, 2014
	No. of Shares	Amount (Rs. in millions)
Opening number of Shares Outstanding	39763595	397.636
Closing number of Shares Outstanding	39763595	397.636

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

No dividend has been recognized as distribution to equity shareholders for the year ended 31.03.2014.

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.

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

Particulars	As at 31st March, 2014
	No. of Shares (in Lakhs)	% holding
Equity shares with voting rights
Electrosteel Castings Limited	193.01	48.54
Avis-Tie Up Private Limited	72.00	18.11
Dalmia Securities Private Limited	27.35	6.88

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	397.636	397.636	397.636
(b) Reserves & Surplus	1857.205	1540.051	1671.012
(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)	2254.841	1937.687	2068.648
(3) Non-Current Liabilities
(a) long-term borrowings	1746.243	1506.558	1295.872
(b) Deferred tax liabilities (Net)	304.184	277.022	359.325
(c) Other long term liabilities	494.664	740.356	531.727
(d) long-term provisions	29.064	14.668	11.668
Total Non-current Liabilities (3)	2574.155	2538.604	2198.592
(4) Current Liabilities
(a) Short term borrowings	2355.734	2767.082	3211.287
(b) Trade payables	1957.017	1047.990	1221.020
(c) Other current liabilities	945.162	737.274	689.252
(d) Short-term provisions	94.572	27.420	22.306
Total Current Liabilities (4)	5352.485	4579.766	5143.865
TOTAL	10181.481	9056.057	9411.105
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4347.003	4402.970	3100.903
(ii) Intangible Assets	7.542	10.768	14.018
(iii) Capital work-in-progress	200.423	170.164	631.389
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	558.622	652.020	703.201
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5113.590	5235.922	4449.511
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2367.514	2082.610	3187.700
(c) Trade receivables	1480.088	1194.271	1223.719
(d) Cash and cash equivalents	573.502	102.062	102.400
(e) Short-term loans and advances	265.199	138.525	207.602
(f) Other current assets	381.588	302.667	240.173
Total Current Assets	5067.891	3820.135	4961.594
TOTAL	10181.481	9056.057	9411.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	9893.956	8638.893	7870.002
		Other Income	72.406	100.243	84.212
		TOTAL (A)	9966.362	8739.136	7954.214
Less	EXPENSES
		Cost of Materials Consumed	5443.678	5697.438	5575.821
		Purchases of Stock-in-Trade	550.370	103.837	70.566
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(144.022)	76.319	(401.645)
		Employees benefits expense	443.627	379.894	360.542
		Other expenses	2430.155	1868.891	1612.066
		TOTAL (B)	8723.808	8126.379	7217.350
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1242.554	612.757	736.864
Less	FINANCIAL EXPENSES (D)		548.961	604.180	578.610
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		693.593	8.577	158.254
Less/ Add	DEPRECIATION/ AMORTISATION (F)		279.428	221.842	199.933
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		414.165	(213.265)	(41.679)
Less	TAX (H)		27.162	(82.303)	(2.156)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		387.003	(130.962)	(39.523)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(15.546)	115.416	160.828
Less	APPROPRIATIONS
		Transfer to General Reserve	200.000	0.000	0.000
		Tax on Dividend	69.782	0.000	0.000
		Prior Period Adjustment	0.000	0.000	5.890
	BALANCE CARRIED TO THE B/S		269.782	0.000	115.415
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	22.477	110.039
	TOTAL EARNINGS		0.000	22.477	110.039
	IMPORTS
		Raw Materials	3135.437	1575.612	3288.506
		Stores & Spares	372.918	116.436	138.237
		Capital Goods	5.120	180.437	164.744
	TOTAL IMPORTS		3513.475	1872.485	3591.487
	Earnings Per Share (Rs.)		9.73	(3.29)	(0.99)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	3.91	(1.52))	(0.50)
Operating Profit Margin (PBIDT/Sales)	(%)	12.56	7.09	9.36
Return on Total Assets (PBT/Total Assets}	(%)	4.15	(2.40)	(0.47)
Return on Investment (ROI) (PBT/Networth)		0.18	(0.11)	(0.02)
Debt Equity Ratio (Total Debt /Networth)		1.82	2.21	2.18
Current Ratio (Current Asset/Current Liability)		0.95	0.83	0.96

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	397.636	397.636	397.636
Reserves & Surplus	1671.012	1540.051	1857.205
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2068.648	1937.687	2254.841
Long-term borrowings	1295.872	1506.558	1746.243
Short term borrowings	3211.287	2767.082	2355.734
Total borrowings	4507.159	4273.640	4101.977
Debt/Equity ratio	2.179	2.206	1.819

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (net)	7870.002	8638.893	9893.956
		9.770	14.528

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (net)	7870.002	8638.893	9893.956
Profit	(39.523)	(130.962)	387.003
	(0.50%)	(1.52%)	3.91%

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

CASE STATUS INFORMATION SYSTEM

CEA 91 / 2011	CEASR 1137 / 2011	CASE IS:PENDING
PETITIONER		RESPONDENT
COMMISSIONER OF CUSTOMS	VS	LANCO INDUSTRIES LIMITED
PET.ADV. :  SATHYARAM (SR SC FOR CB EXCISE)		RESP.ADV. : PRABHAKARA SASTRY
SUBJECT: CENTRAL EXCISE APPEAL		DISTRICT:  HYDERABAD
FILING DATE:   08-04-2011	POSTING STAGE :  FOR ADMISSION AND HEARING
REG. DATE    :   01-06-2011	LISTING DATE :  27-06-2011	STATUS   :  ADMIT
HON'BLE JUDGE(S):	V.V.S.RAO	RAMESH RANGANATHAN

UNSECURED LOAN

Particulars	As on 31.03.2014	As on 31.03.2013
	(Rs. In Millions)
LONG TERM BORROWINGS:
Sales tax deferment	0.000	6.128
Total	0.000	6.128

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10470218	04/04/2014 *	500,000,000.00	INDUSIND BANK LIMITED	INDUSIND BANK LIMITED, KOLKATA, KOLKATA, WEST BENGAL - 700017, INDIA	C02537918
2	10443660	24/06/2013	900,000,000.00	IDBI BANK LIMITED	44, SHAKESPHEARE SARANI, KOLKOTA, WEST BENGAL - 700017, INDIA	B82299595
3	10367456	31/12/2012 *	560,920,000.00	STANDARD CHARTERED BANK	AND ON BEHALF OF STANDARD CHARTERED BANK, (LONDON),  19, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA	B65961708
4	10343785	10/05/2012 *	600,000,000.00	STANDARD CHARTERED BANK	19, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA	B39170287
5	10300564	13/09/2011 *	400,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.  ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA -  400018, INDIA	B21276019
6	10291964	12/09/2011 *	810,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B20721015
7	10280593	11/03/2011	500,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W  , MUMBAI, MAHARASHTRA - 400013, INDIA	B10589786
8	10267156	13/09/2011 *	150,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.  ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA -  400018, INDIA	B21310370
9	10267537	04/01/2011	500,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W  , MUMBAI, MAHARASHTRA - 400013, INDIA	B06128656
10	10256431	28/11/2012 *	1,800,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B64083066
11	10255174	18/11/2010	500,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.  ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA -  400018, INDIA	B01030923
12	10179463	06/01/2010 *	3,750,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	115, ANNA SALAI, SAIDAPET, CHENNAI, TAMIL NADU  - 600015, INDIA	A77595452
13	80061662	29/11/2010 *	3,500,000,000.00	STANDARD CHARTERED BANK (LEAD BANK)	19, NETAJI SUBHAS ROAD, KOLKATA, WEST BENGAL - 700001, INDIA	B02666105
14	90261582	07/12/2001 *	30,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA	-
15	90261274	24/08/1995 *	70,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION O  F INDIA LIMITED	ZENITH HOUSE, KESHAVRAO KHADE MARG, MAHALAXMI, BO  MBAY, MAHARASHTRA - 400034, INDIA	-
16	90261074	03/03/1994 *	25,200,000.00	UNIT TRUST OF INDIA	13, SIR VITHALDAS THACKERSERY MARG, (NEW MARINE  LINES), MUMBAI, MAHARASHTRA - 400020, INDIA	-

* Date of charge modification

REVIEW OF OPERATIONS

Company crossed the Rs. 10000.000 Millions turnover mark and has achieved Gross operating revenue of Rs. 10371.600 Millions during the year as against Rs. 8976.200 Millions in the previous year, thus registering an increase of 16% in gross revenue. The production of D.I. Pipes during the FY 2013-14 was higher at 162892 MT as compared to 157753 MT for the FY 2012-13. The production of Mini Blast Furnace (MBF), producing liquid metal mainly for Ductile Iron Pipe Plant was higher during the FY 2013-14 by 10.82% at 198036 MT compared to 178707 MT for the FY 2012-13. The production of Low Ash Metallurgical Coke was higher in FY 2013-14 by 9.66% at 137339 MT as against 125239 MT in FY 2012-13 and the power generation in 12 MW – Waste Heat Recovery Based Captive Power Plant was also higher in FY 2013-14 by 37.38% at 882 lakh units as against 642 lakh units in FY 2012-13. The production of cement during the FY 2013-14 was marginally higher at 67,396 MT compared to 66,059 MT in the previous year. Successful commissioning of Sinter Plant in the last quarter of the FY 2012-13, helped the Company during the year, in replacing high cost calibrated iron ore with iron ore fines. Resultant reduction in coke consumption and the favourable coal prices movement culminated into overall reduction in input cost. This apart, the improved availability of captive power generation, during the year, minimized the incidence of power purchase from power exchange and also reduced the dependence on generation of power by DG Sets, thus leading to significant lower power cost during the FY 2013-14 as compared to FY 2012-13. With the hedging policy of the company in place for the year the company prevented its foreign exchange losses inspite of unfavourable fluctuation in rupee-dollar equation. With moderate growth in the volumes of D.I. pipes during the year, coupled with reduced cost of molten metal and captive power, the Company has achieved a pre-tax profit of Rs. 414.200 Millions in the FY 2013-14 as against a net loss of Rs. 213.200 Millions reported in the FY 2012-13.

FUTURE PROSPECTS

During the current yearthe company has embarked an investment of Rs. 1000.000 Millions by way of capital expenditure to improve the quality and production level of Ductile Iron Pipes. The company is adding certain balancing facilities which include enhancement of blowing capacity in MBF, additional induction furnace, new spinning machine with higher productivity, additional finishing line and other process automation equipments. This will result in increased production of Ductile Iron Pipes by 50000 MT per annum.

MANAGEMENT DISCUSSION & ANALYSIS

OVERVIEW

Lanco Industries Limited (LIL) promoted by Lanco Group in 1992 set up a Mini Blast Furnace (MBF) in 1994 with an installed capacity of 90,000 TPA to manufacture and sell Pig Iron to foundry units across India. In 1998, LIL entered into an arrangement to supply Molten Iron and Pig Iron to Lanco Kalahasthi Castings Limited (LKCL) a company within the same campus engaged in the business of Iron Castings & Forging. LKCL later on added high technology Ductile Iron Pipes (DIP) manufacturing facilities to its portfolio. In March 2002, India’s pioneering D.I. Pipe manufacturer, Electrosteel Castings Limited (ECL) entered into a strategic alliance with LIL and LKCL by acquiring 46.43 and 48.89 percent stake in the companies respectively. In addition to technological support, ECL also infused fresh funds into LIL by way of equity participation and re-modeled the financial structure, thus reducing interest costs. In 2003, the capacity of MBF was increased from 90,000 TPA to 1,50,000 TPA and the capacity of D.I. Pipes was increased from 60,000 TPA to 90,000 TPA at a capital outlay of approx. Rs. 35 Crores.

In 2003, LKCL got merged with LIL (with effect from 1st April, 2003) to take advantage of the close synergy in the business model of the two companies, since a large part of Pig Iron in liquid form is consumed by LKCL for Manufacture of pipes. In 2004, a major backward integration project comprising of 1,50,000 TPA Coke Oven Plant

and 12 MW Waste Heat Recovery Based Cogenerating Captive Power Plant at a capital outlay of Rs.880.00 Millions was started. In 2005, 1,50,000 TPA Coke Oven Plant was commissioned and commercial production was stabilized. The coke being produced is at par with international quality of LAM coke. In 2006, the capacity of D.I. Pipes was further increased from 90,000 TPA to 1,20,000 TPA and the 12 MW Waste Heat Recovery Based Co-Generating Captive Power Plant was set up, which started generating power from March, 2007. In 2007, Stamp Charging System was successfully implemented at Coke Oven Plant for producing quality metallurgical coke at a

lower cost. In 2008, the Company implemented ERP system (SAP) to support business process and effective resource planning and management. In 2009, capacity of D.I. Pipes was increased from 1,20,000 TPA to 1,80,000 TPA. In 2010, capacity of Mini Blast Furnace (MBF) for production of Liquid Metal/Pig Iron was enhanced from 150,000 TPA to 225,000 TPA. In 2011, the Company’s admired project to use primarily treated sewerage water of Tirupati Municipal Corporation for industrial purpose was commissioned successfully. In 2012, capacity of Coke Oven Plant was enhanced from 150,000 TPA to 225,000 TPA by installing 3rd Coke oven battery. Moreover, installation of additional boiler in the 12 MW Captive Power Plant was also successfully commissioned, resulting in full utilization of capacity of the Power Plant. Further, the project for installation of Sinter Plant has been successfully commissioned in the last quarter of the FY 2012-13, whereby the usage of lump ore in MBF has been substituted with major quantity of iron ore fines. During the FY 2013-14, the Company has successfully completed the extension of its railway siding for catering placement of more rakes resulting in improved logistics. Further, the Company has envisaged to augment its DI Pipes production by about 50,000 TPA

and in this process is adding certain balancing facilities which include enhancement of blowing capacity in MBF, additional induction furnace, new spinning machine with higher productivity, additional finishing line and other process automation equipments, besides taking up certain modifications for improvement in the overall efficiency of Mini Blast Furnace.

INDUSTRY OUTLOOK

The Government of India is committed for higher investment in the water Sector. It is expected that the demand for Indian pipe industry will continue to remain healthy, considering Government’s focus for water infrastructure projects, resulting in growth of the pipe industry.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2014

Sr. No.	Particulars			Rs in Millions
				Quarter ended		Nine months ended
				31.12.2014	30.09.2014	31.12.2014
				(Unaudited)	(Unaudited)	(Unaudited)
1	(a) Net Sales/Income from Operations			3080.151	2571.301	7821.201
	(b)Other Operating Income			--	---	--
	Total Income From Operations (Net)			3080.151	2571.301	7821.201
2	Expenditure
	(a)		Cost of Materials Consumed	1423.178	1315.128	3761.258
	(b)		Purchases of Stock-in-Trade	397.487	0.500	411.088
	(c)		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.030)	33.746	50.722
	(d)		Employees benefits expense	126.722	117.593	370.716
	(e)		Depreciation and amortization expense	67.140	68.189	200.191
	(f )		Other expenses	646.450	664.512	1938.726
			TOTAL (B)	2654.948	2199.668	6732.702
3	Profit from operation before other income, interest and other exceptional items(1-2)			425.203	371.633	1088.499
4	Other Income			18.420	12.842	44.690
5	profit before interest and exceptional items(3+4)			443.623	384.475	1133.189
6	Interest			132.391	107.982	361.382
7	Profit after interest but before exceptional items(5-6)			311.232	276.493	771.807
8	Exceptional Items			--	--	--
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			311.232	276.493	771.807
10	Tax Expenses			97.471	93.166	246.294
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			213.761	183.327	525.513
12	Extra Ordinary Items			---	--	--
13	Net Profit(+)/Loss(-) for the period (1112)			213.761	183.327	525.513
14	Paid-up Equity Share Capital Rs.10/ per share			397.636	397.636	397.636
15	Reserves excluding revaluation reserves			--	--	--
16		Earning Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		5.38	4.61	13.22
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		5.38	4.61	13.22
17		Public Shareholding
		Number of Shares		19570417	19570417	19570417
		Percentage of Shareholding		49.22	49.22	49.22
18		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		Nil	Nil	Nil
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		Nil	Nil	Nil
		Percentage of Shares (as a % of the total share capital of the Company)		Nil	Nil	Nil
		b) Non-encumbered
		Number of shares		20193178	20193178	20193178
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100.00	100.00	100.00
		Percentage of Shares (as a % of the total share capital of the Company)		50.78	50.78	50.78
		Particulars
		INVESTOR COMPLAINTS		Quarter ended 31.12.2014
		Pending at the beginning of the quarter		Nil
		Received during the quarter		7
		Disposed off during the quarter		7
		Remaining unresolved at the end of the quarter		Nil

Notes:

1. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors in their meeting held on 30.01.2015.

2. The Company has only "Pipes" as a significant reportable segment.

3. Finance cost includes loss of Rs. 17.745 Millions on account of foreign exchange fluctuations for quarter ended 31.12.2014 (Rs. 0.361 Millions loss during the corresponding quarter ended 30.09.2014 and Rs. 7.917 Millions during the year ended 31.12.2013)

4. The Depreciation on fixed assets has been charged in accordance will schedule II of the Companies Act, 2013.

5. The Auditors of the Company have carried out a Limited Review of the aforesaid Financial results for the quarter ended 31.12.2014 in terms of Clause 41 of the Listing Agreement with Stock Exchanges.

6. Figures of the previous period are re-arranged wherever necessary to conform to the figures of current period.

FIXED ASSETS:

Tangible Assets

· Land

· Leasehold Land

· Factory Building

· Non Factory Building

· Plant and Machinery

· Electrical Installation

· Office Equipment

· Furniture

· Vehicle

Intangible Assets

· Computer Software

PRESS RELEASE:

CHANGE OF NAME OF THE COMPANY

September 29, 2014:  

With reference to earlier letter dated July 28, 2014, wherein it was intimated that the Board of Directors of the Company has approved the proposal of changing the name of the Company, subject to the approval of shareholders. Lanco Industries Ltd has now informed BSE that the shareholders have assented for changing the name of the Company from Lanco Industries Limited to Srikalahasthi Pipes Limited at the 22nd Annual General Meeting of the Company held on September 27, 2014.

Subsequently, the Company has filed requisite form with Registrar of Companies, Andhra Pradesh seeking its approval and accordingly Registrar of Companies, Andhra Pradesh has issued fresh Certificate of Incorporation dated September 29, 2014 changing the name of the Company, pursuant to Rule 29 of the Companies (Incorporation) Rules, 2014.

Further the Company has informed that, the name of the Company has been changed from Lanco Industries Limited to Srikalahasthi Pipes Limited with effect from September 29, 2014.

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.62.18
UK Pound	1	Rs.95.72
Euro	1	Rs.70.76

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	RAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		49

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.