MIRA INFORM REPORT

Report No. :	309959
Report Date :	26.02.2015

IDENTIFICATION DETAILS

Name :	PITTI LAMINATIONS LIMITED

Registered Office :	4^Th Floor, Padmaja Land Mark, 6-3-648/401, Somajiguda, Hyderabad – 500082, Telangana

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	17.09.1983

Com. Reg. No.:	36-004141

Capital Investment / Paid-up Capital :	Rs.134.959 Million

CIN No.: [Company Identification No.]	L29253TG1983PLC004141

IEC No.:	Not Available

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 :	Manufacturer of electrical steel laminations.

No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 3100000

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 reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered for normal 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

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 = BBB+
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	July 2, 2014

Rating Agency Name	CARE
Rating	Short term bank facilities = A2
Rating Explanation	Have strong degree of safety and carry low credit risk.
Date	July 2, 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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Sathya Narayana
Designation :	General Manager (Finance)
Contact No.:	91-40-23312750

LOCATIONS

Registered Office :	4^Th Floor, Padmaja Land Mark, 6-3-648/401, Somajiguda, Hyderabad – 500082, Telangana, India
Tel. No.:	91-40-23312750
Fax No.:	Not Available
E-Mail :	br@pittilam.com
Website :	www.pittilam.com
Location :	Rented
Locality :	Commercial / Industrial

Factory (Plant I & II) :	Nandigaon Village, Kottur Mandal District Mahaboobnagar- 590233, Telangana, India
Tel. No.:	91-40-23312768 / 23312774
Mobile No.:	91-8008200424
Fax No.:	91-40-23393985
E-Mail :	ramesh.akula@pittiam.com
Website :	www.pittielectriclam.com

DIRECTORS

As on 22.09.2014

Name :	Mr. Sharad B Pitti
Designation :	Chairman and Managing Director

Name :	Shri Akshay S Pitti
Designation :	Vice-Chairman and Managing Director

Name :	Shri Y B Sahgal
Designation :	Executive Director

Name :	Shri GVSN Kuma
Designation :	Executive Director and CFO

Name :	Shri G Narayana Rao
Designation :	Director

Name :	Shri Arun Garodia
Designation :	Director

Name :	Shri Kanti Kumar R Podar
Designation :	Director

Name :	Shri N R Ganti
Designation :	Director

Name :	Shri G Vijaya Kumar
Designation :	Director

Name :	Shri M Gopalakrishna
Designation :	Director

Name :	Shri TSSN Murthy
Designation :	Director

KEY EXECUTIVES

Name :	Shri Satyabrata Padhi
Designation :	Company Secretary

Name :	Mr. Sathya Narayana
Designation :	General Manager (Finance)

Name :	Ramesh Akula
Designation :	Assistant Manager Purchase

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	4604690	34.13
Bodies Corporate	3490000	25.87
Sub Total	8094690	60.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8094690	60.00
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	107783	0.80
Sub Total	107783	0.80
(2) Non-Institutions
Bodies Corporate	1151538	8.54
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	2492776	18.48
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	1538239	11.40
Any Others (Specify)	106674	0.79
Non Resident Indians	83501	0.62
Clearing Members	23173	0.17
Sub Total	5289227	39.20
Total Public shareholding (B)	5397010	40.00
Total (A)+(B)	13491700	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)	13491700	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of electrical steel laminations.

Products :	Not Available

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :
Products :	Finished Goods
Countries :	USA Maxico

Imports :
Products :	Raw Material
Countries :	China Korea Taiwan

Terms :
Selling :	Cash and Cheque

Purchasing :	Cash and Cheque

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

800 (Approximately)

Bankers :

State Bank of India, Industrial Finance Branch Rajbhavan Road, Somajiguda, Hyderabad – 500082, Telangana, India
Indian Overseas Bank, Adarshnagar Branch 5-9-305A, Paigah Plaza, Basheerbagh, Hyderabad – 500029, Telanagan, India
Kotak Mahindra Bank, Jewel Pavani Towers Rajbhavan Road, Somajiguda Hyderabad – 500082, Telangana, India
Allahabad Bank, Industrial Finance Branch 6-3-850/3, I Floor Ameerpet Main Road Hyderabad – 500016, Telangana, India
Oriental Bank of Commerce, 156/1, SMR Sartaj Plaza Sikh Road, Bowenpally Secunderabad – 500009, Telangana, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Term Loans from Banks	137.846	53.271
Term Loans from others	45.403	54.907
Other loans from Bank	0.000	5.629
Vehicle Loan from Banks	0.000	0.117
SHORT TERM BORROWINGS
Working capital borrowings from Banks	940.913	1305.352
Total	1124.162	1419.276
Note : Long Term Borrowing : a) Term loans from scheduled bank, Oriental Bank of commerce is secured by equitable mortgage of movable and immovable properties and first charge on the present and future fixed assets of the company situated at Plant I and Plant II Nandigaon, Mahaboobnagar district. A.P Further these are secured by a second charge on the present and future current assets of the company and personal guarantee provided by the Chairman and Managing Director and Vice Chairman and Managing Director. b) Term loans from scheduled bank, State Bank of India is secured by equitable mortgage of movable and immovable properties and first charge on the present and future fixed assets of the company situated at Plant I and Plant II Nandigaon, Mahaboobnagar district. A.P Further these are secured by a second charge on the present and future current assets of the company and personal guarantee provided by the Chairman and Managing Director and Vice Chairman and Managing Director and their relative. c) The above term loan from others is secured by exclusive charge on the machinery purchased to the extent funded and personal guarantee provided by the Chairman and Managing Director and Vice Chairman and Managing Director. d) Secured against lien on FDR from Agroha Co-operative Urban Bank. (Loan closed in September 2013). e) Secured against hypothecation of vehicles. Long term liability for previous year has been cleared during FY 2013-14 f) Represents 14 years interest free sales tax deferment loan received from Government of Andhra Pradesh. Repayment commences from January 2018 based on the deferment availed in the respective years. Short Term Borrowing : Working capital facilities from State Bank of India, Indian Overseas Bank, Allahabad Bank and Kotak Mahindra Bank are secured on a pari passu first charge basis against hypothecation of stocks, Tools and Dies, Spares and consumables, book debts and all other current assets both present and future. Further these are secured by second charge on fixed assets of the company both present and future, apart from the personal guarantees of the Chairman and Managing Director and Vice Chairman and Managing Director and their relative.

Auditors :
Name :	Laxminiwas Neeth and Company Chartered Accountants
Address :	402, IV Floor Moghal’s Court, Basheerbagh Hyderabad – 500001, Telangana, India
Cost Auditors :
Name :	Sagar and Associates Cost Accountants
Address :	206, II Floor Raghava Ratna Towers Chirag Ali Lane, Abids Hyderabad – 500001, Telangana, India

Memberships :	Not Available

Collaborators :	Not Available

Associates/Subsidiaries :	Pitti Castings Private Limited Pitti Electrical Equipment Private Limited Pitti Components Limited Vaksh Steels Private Limited Pitti Holdings Private Limited Badrivishal Pannalal Pitti Trust Akshva Ispat Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

15000000	Equity Shares	Rs.10/-each	Rs.150.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

13491700	Equity Shares	Rs.10/-each	Rs.134.917 Million
	Shares forfeited		Rs.0.042 Million
	Total		Rs.134.959 Million

Note :

Reconciliation of equity shares

Particulars	2013-2014
Particulars	No of shares	Rs. In Million
Issued, subscribed and paid-up capital
At the beginning of the period	13491700	134.917
Issued during the period - (Shares on Preferential basis)	---	---
At the closing of the period	13491700	134.917

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

Name of the shareholder	As at 31st March, 2014
Name of the shareholder	Percentage	No. of shares
Shri Sharad B Pitti	15.85	2137780
Shri Akshay S Pitti	11.70	1579100
Smt Madhuri S Pitti	5.79	781100
Pitti Electrical Equipment Private Limited	25.87	3490000

FINANCIAL DATA

[all figures are in Rupees Million]

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	134.959	134.959	134.959
(b) Reserves & Surplus	980.737	954.470	871.680
(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)	1115.696	1089.429	1006.639

(3) Non-Current Liabilities
(a) long-term borrowings	211.481	142.156	166.631
(b) Deferred tax liabilities (Net)	72.431	67.433	55.552
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.092	6.439	0.000
Total Non-current Liabilities (3)	291.004	216.028	222.183

(4) Current Liabilities
(a) Short term borrowings	940.913	1305.352	1239.183
(b) Trade payables	567.328	438.618	752.627
(c) Other current liabilities	124.338	106.042	189.884
(d) Short-term provisions	45.826	68.715	165.484
Total Current Liabilities (4)	1678.405	1918.727	2347.178

TOTAL	3085.105	3224.184	3576.000

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	861.824	834.224	764.897
(ii) Intangible Assets	11.724	8.167	8.874
(iii) Capital work-in-progress	58.513	8.077	38.841
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	40.800	40.800	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.689	6.622	5.345
(e) Other Non-current assets	0.000	10.159	10.159
Total Non-Current Assets	979.550	908.049	828.116

(2) Current assets
(a) Current investments	0.010	0.010	0.010
(b) Inventories	967.883	1010.825	1042.937
(c) Trade receivables	642.203	888.223	1131.835
(d) Cash and cash equivalents	94.688	63.092	113.731
(e) Short-term loans and advances	386.889	327.592	455.767
(f) Other current assets	13.882	26.393	3.604
Total Current Assets	2105.555	2316.135	2747.884

TOTAL	3085.105	3224.184	3576.000

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	2478.295	3103.550	4080.269
	Other Income	19.637	12.923	2.514
	TOTAL	2497.932	3116.473	4082.783

Less	EXPENSES
	Cost of Materials Consumed	1595.053	2078.743	2547.610
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(67.873)	(83.344)	141.293
	Employees benefits expense	256.768	278.377	267.489
	Other expenses	367.263	421.207	496.738
	TOTAL	2151.211	2694.983	3453.130

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	346.721	421.490	629.653

Less	FINANCIAL EXPENSES	191.483	179.139	228.652

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	155.238	242.351	401.001

Less/ Add	DEPRECIATION/ AMORTISATION	87.522	83.747	66.375

	PROFIT/ (LOSS) BEFORE TAX	67.716	158.604	334.626

Less	TAX	25.662	60.134	110.421

	PROFIT/ (LOSS) AFTER TAX	42.054	98.470	224.205

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	496.475	413.705	259.500

Less	APPROPRIATIONS
	Transfer to General Reserve	2.500	0.000	23.000
	Dividend	15.800	15.700	47.000
	Total	18.300	15.700	70.000

	Balance Carried to the B/S	520.229	496.475	413.705

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	1011.139	1580.347	2560.846
	TOTAL EARNINGS	1011.139	1580.347	2560.846

	IMPORTS
	Raw Materials	498.984	590.878	939.144
	Components and Stores parts	4.359	3.803	14.571
	Capital Goods	112.381	71.123	73.469
	TOTAL IMPORTS	615.724	665.804	1027.184

	Earnings / (Loss) Per Share (Rs.)	3.12	7.30	16.62

QUARTERLY RESULTS

Particulars (Rs. In Million)	Jun 2014	Sep 2014	Dec 2014
Audited / Unaudited	Unaudited	Unaudited	Unaudited
Net Sales	720.000	717.700	934.000
Total Expenditure	650.300	639.000	820.300
PBIDT (Excl OI)	69.800	78.800	113.800
Other Income	7.800	3.400	3.200
Operating Profit	77.600	82.200	117.000
Interest	24.900	28.100	30.600
Exceptional Items	0.000	0.000	0.000
PBDT	52.700	54.000	86.300
Depreciation	39.500	39.100	39.700
Profit Before Tax	13.300	14.900	46.700
Tax	4.900	5.100	17.700
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	8.400	9.800	29.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	8.400	9.800	29.000

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012

Net Profit Margin PAT / Sales	(%)	1.69	3.17	5.49

Operating Profit Margin (PBDIT/Sales)	(%)	13.99	13.58	15.43

Return on Total Assets (PBT/Total Assets}	(%)	2.27	4.99	9.46

Return on Investment (ROI) (PBT/Networth)		0.06	0.15	0.33

Debt Equity Ratio (Total Debts/Networth)		1.03	1.33	1.40

Current Ratio (Current Asset/Current Liability)		1.25	1.21	1.17

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	134.959	134.959	134.959
Reserves & Surplus	871.680	954.470	980.737
Net worth	1006.639	1089.429	1115.696

long-term borrowings	166.631	142.156	211.481
Short term borrowings	1239.183	1305.352	940.913
Total borrowings	1405.814	1447.508	1152.394
Debt/Equity ratio	1.397	1.329	1.033

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	4080.269	3103.550	2478.295
		(23.938)	(20.146)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	4080.269	3103.550	2478.295
Profit	224.205	98.470	42.054
	5.49%	3.17%	1.70%

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	No
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	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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
IITA 417 / 2010 ITTASR 18956 / 2004 CASE IS : PENDING
PETITIONER RESPONDENT
COMMISSIONER OF INCOME TAX-II	VS. PITTI LAMINATIONS LIMITED
PET. ADV. : ASHOK AND V R BADRI (SC FOR ITAX)	RESP. ADV. : RAMASWAMI
SUBJECT : INCOME TAX	DISTRICT : HYDERABAD
FILING DATE : 10.03.2004	POSTING STAGE : FOR ADMISSION
REG. DATE : 18.05.2010	LISTING DATE : 05.07.2010
STATUS : ADMIT
HON’BLE JUDGE(S): B. PRAKASH RAO RAMESH RANGANATHAN

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10544513	16/12/2014	80,000,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	C41179193
2	10479332	17/10/2014 *	84,700,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	C41252362
3	10330244	12/11/2013 *	60,000,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	B91213553
4	10299592	27/07/2011	50,000,000.00	L & T FINANCE LIMITED	L&T HOUSE,, BALLARD ESTATE,, MUMBAI, Maharashtra - 400001, INDIA	B17848110
5	10279221	19/11/2011 *	110,000,000.00	Oriental Bank of Commerce	156/1, SMR Sartaj Plaza, Sikh Road, Bowenpally, Secunderabad, Andhra Pradesh - 500009, INDIA	B27593268
6	10248236	19/11/2014 *	600,000,000.00	Indian Overseas Bank	Adarsh Nagar Branch, 5-9-305A, Paigah Plaza, Basheerbagh, Hyderabad, Telangana - 500029, INDIA	C38683041
7	10120993	11/08/2014 *	300,000,000.00	KOTAK MAHINDRA BANK LIMITED	27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E),, Mumbai, Maharashtra - 400051, INDIA	C29930666
8	10118156	19/09/2014 *	1,139,400,000.00	State Bank of India	Industrial Finance Branch, Rajbhavan Road, Somaji guda, Hyderabad, Telangana - 500082, INDIA	C29051075
9	80035430	04/06/2014 *	200,000,000.00	ALLAHABAD BANK	INDUSTRIAL FINANCE BRANCH, 6-3-850/3, I FLOOR, AMEERPET MAIN ROAD, HYDERABAD, Telangana - 500016, INDIA	C08515025
10	90120190	23/02/1987	100,000.00	STATE BANK OF INDIA	HYDERABAD; (YELLAREDDYGUDA BRANCH), HYDERABAD, Andhra Pradesh, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Sales Tax Deferral	28.232	28.232
Total	28.232	28.232

CORPORATE OVERVIEW

Subject is one of the largest manufacturers of special purpose laminations for all types of rotating electrical machinery. The Company’s products have application in industrial motors, alternators, hydro-electric and thermal power generators, wind power generators, DC machines, railway traction motors, pumps, medical diagnostic equipment and aeronautic wing control motors. PLL has a fully integrated manufacturing facility to cater to specific customer requirements and provides end-to-end solutions at one location. The Company has a state of the art tool room for the manufacture of dies, jigs, fixtures and press tools. It also has a modern press shop with high speed presses, coil feeds, CNC notching and machine shop for assembly and finished machining of lamination housings as a ready to use product. During the year under review, the Company has undertaken expansion projects, by which the installed capacity increased to 32,000 TPA. The Company has also diversified its presence into the smaller laminations segment to cater to the consumer sector.

REVIEW OF OPERATIONS

During the year, the Indian economy remained under pressure due to low levels of industrial and infrastructure investments. However, during the last quarter of the financial year, the Company benefitted from some early signs of improvement in the key economic indicators such as inflation and current account deficit. This changing environment supported strong financial performance of the Company in Q4 FY 2014, resulting in gross sales of Rs. 2643.100 Million for FY 2014. Of the total sales, domestic sales contributed Rs. 1613.400 Million and export sales Rs. 1029.700 Million. Export sales were impacted by the postponement of orders from some of the Company’s international clients, although the situation improved from Q4 FY 2014. In particular, the export of stator frames sales declined by 450 units to 501 in FY 2014. EBITDA was Rs. 240.600 Million in FY 2014, a decrease of 38% compared to the same period of last year. PAT for the period decreased from Rs. 98.500 Million in FY 2013 to Rs. 42.100 Million in FY 2014.

OUTLOOK

Global economy

The global economy has been experiencing some early indicators of recovery driven by better demand scenario and consumer sentiments. As per IMF, the global economy is expected to register a growth of 3.4% in FY 2014 and more than 4% in FY 2015. The emerging economies would be the growth drivers in the initial months of FY 2014. Developing economies such as the US economy is anticipated to record a weaker growth in first half of FY 2014 due to weather-related contraction. However, in the later half it is expected to rebound and grow at more than 3%.

Indian economy

The National Council of Applied Economic Research (NCAER) has projected that the India’s GDP growth for FY 2015 would be between 5.2% - 5.7% driven by the recovery quality, timing and cost. The initiative will result in better client experience and will ensure client retention as well as addition of new clients.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS PERIOD ENDED ON 31^ST DECEMBER 2014

(Rs. In Million)

Particulars	Quarter Ended ( Unaudited)		Nine Months Ended ( Unaudited)
	31.12.2014	30.09.2014	31.12.2014
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	921.917	710.515	2345.384
b) Other operating income	12.126	7.204	26.404
Total income from Operations(net)	934.043	717.719	2371.788
2.Expenditure
a) Cost of material consumed	630.213	493.101	1630.853
b) Purchases of stock in trade	---	---	---
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(17.549)	(54.578)	(94.931)
d) Employees benefit expenses	77.908	70.276	218.927
e) Depreciation and amortization expenses	39.683	39.116	118.249
f) Other expenditure	118.953	116.016	329.756
Total expenses	849.208	663.931	2202.854
3. Profit from operations before other income and financial costs	84.835	53.788	168.934
4. Other income	3.187	3.388	12.181
5. Profit from ordinary activities before finance costs	88.022	57.176	181.115
6. Finance costs
(a) Bank Interest and others	30.616	28.125	83.596
(b) Forex Loss/(gain)	10.757	14.143	22.698
Total Finance Costs	41.373	42.268	106.294
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	46.649	14.908	74.821
8. Exceptional item	---	---	---
9. Profit from ordinary activities before tax Expense:	46.649	14.908	74.821
10.Tax expenses	17.651	5.086	27.584
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	28.998	9.822	47.237
12.Extraordinary Items (net of tax expense)	---	---	---
13.Net Profit / (Loss) for the period (11 -12)	28.998	9.822	47.237
14.Paid-up equity share capital (Nominal value Re. 1/- per share)	134.917	134.917	134.917
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	---	---	---
16.i) Earnings per share (before extraordinary items) of Re. 1/- each) (not annualised):
(a) Basic and diluted	2.15	0.73	3.50
ii) Earnings per share (after extraordinary items)
(a) Basic and diluted	2.15	0.73	3.50

A. Particulars of shareholding
1. Public Shareholding
- Number of shares	5397010	5397010	5397010
- Percentage of shareholding	40.00	40.00	40.00
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	---	---	---
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	---	---	---
Percentage of shares (as a % of total share capital of the company)	---	---	---

b) Non Encumbered
Number of shares	8094690	8094690	8094690
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00	100.00

Percentage of shares (as a % of total share capital of the company)	60.00	60.00	60.00

B. Investor Complaints	Quarter ended 31.12.2014
Pending at the beginning of the quarter	Nil
Receiving during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unreserved at the end of the quarter	Nil

Note :

The Company has one business segment only, namely manufacture of electrical laminations and stampings and machining of stator bodies and as such reporting is done on a single segment basis. However the geographical segment revenue and assets are as under :

Particulars	Quarter Ended ( Unaudited)		Nine Month Ended ( Unaudited)
	31.12.2014	30.09.2014	31.12.2014
1. Segment Revenue
India	456.872	403.622	1293.240
Outside India	465.045	306.893	1052.144
Total	921.917	710.515	2345.384
2. Segment Assets
India	2886.636	2833.177	2886.636
Outside India	523.612	337.604	523.612
Total	3410.249	3170.781	3410.249

In accordance with the requirements of schedule-II of Companies Act, 2013 the company has re-assessed the useful life of the fixed assets. Accordingly:

a) An amount of Rs. 12.596 Million has been charged as additional depreciation during the current quarter representing the impact of the change in depreciation on the carrying value of the assets as at April 1, 2014 on remaining useful life of assets and;

b) An amount of Rs. 4.064 Million has been charged to the opening balance of the retained earnings whose remaining useful life is nil as at April 1, 2014.

The other operating Income broadly comprises of exports incentives.

The Board of Directors of the company have recommended an interim dividend of Rs.0.75p per share on the equity share of Rs.10/-each for FY 2014-15.

As required under clause 41 of the Listing Agreement, the Limited Review by the Statutory Auditiors has been completed.

Figures of the previous quarters / year have been regrouped and reclassified wherever necessary to correspond with current year’s presentation.

The above un-audited financial results for the nine months ended 31^st December, 2014 have been reviewed by the Audit Committee and were approved and taken on record by the Board of Directors at the meetings held on 28^th January, 2015.

FIXED ASSETS

Land
Factory Building
Lease hold Property
Plant & Equipment
Office Equipment
Furniture & Fixtures
Other –Computers
Vehicles

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.62.04
UK Pound	1	Rs.96.02
Euro	1	Rs.70.43

INFORMATION DETAILS

Information Gathered by :	GAY

Analysis Done by :	RAS

Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.

MIRA INFORM REPORT

1.69

13.99

Unit