MIRA INFORM REPORT

Report No. :	304042
Report Date :	22.01.2015

IDENTIFICATION DETAILS

Name :	HIMADRI CHEMICALS AND INDUSTRIES LIMITED
Registered Office :	‘Ruby House’ 8, India Exchange Place, 2^nd Floor, Kolkata-700001, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.07.1987
Com. Reg. No.:	21-042756
Capital Investment / Paid-up Capital :	Rs. 385.733 millions
CIN No.: [Company Identification No.]	L27106WB1987PLC042756
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 :	The Company is primarily engaged in manufacturing of carbon materials and chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 24000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has incurred loss from its operational activities during 2014. However, the rating takes into consideration established track record of business operations supported by leadership position in the domestic coal tar pitch market, sound financial base and fair liquidity profile of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	November 18, 2014

Rating Agency Name	CARE
Rating	Short term bank facilities A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	November 18, 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.

LOCATIONS

Registered Office :	‘Ruby House’ 8, India Exchange Place, 2^nd Floor, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-22304363/9953
Fax No.:	91-33-22309051
E-Mail :	info@himadri.com blsharma@himadri.com
Website :	www.himadri.com
Corporate Office :	Fortuna Tower 23-A, Netaji, Subhas Road, 8^th Floor, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-2230-5363/9953
Fax No.:	91-33-22309051
Factory 1 :	58, Netaji Subhas Road, Liluah, Howrah, West Bengal, India
Tel No.:	91-33-22209953/ 22204363 / 22104264
Fax No.:	91-33-22209051 / 22104263
E –Mail :	info@himadri.com / sales@himadri.com / investors@himadri.com
Factory 2 :	27B, Gadadhar Bhatt Road, Liluah, Howrah, West Bengal
Factory 3 :	Mahistikry, Haripal, Hooghly, West Bengal
Factory 4 :	Ancillary Industrial Estate, Visakhapatnam, Andhra Pradesh
Factory 5 :	Plot No. 67, 68 & 69, Ancillary Industrial Estate, Vill: Pedagantyada, PIN- 530 013 (A. P.)
Korba Unit :	Jhagrah Rajgamar Colliery, Korba, Chhattisgarh, India
Vapi Unit :	GIDC 1^st Phase, Vapi, Gujarat, India
Windmill Units :	Village Amkhel, Taluka, Sakri District Dhule, Maharashtra, India Village Titane, Taluka0 Sakrii, District, Dhule, Maharashtra
Falta (SEZ unit) :	Falta Special Economic Zone, Sector- II, Vill- Simulberia, Falta,,District- 24 Pgs (South), West Bengal, India

DIRECTORS

As on 31.03.2014

Name :	Mr. Mr. D. P. Choudhary
Designation :	Chairman
Name :	Mr. Shyam Sundar Choudhary
Designation :	Executive Director
Name :	Mr. Bankey Lal Choudhary
Designation :	Managing Director
Name :	Mr. Vijay Kumar Choudhary
Designation :	Executive Director
Name :	Mr. Sakti Kumar Banerjee
Designation :	Non-Executive Independent Director
Name :	Mr. Hardip Singh Mann
Designation :	Non-Executive Independent Director
Name :	Mr. Krishnava Satyaki Dutt
Designation :	Non-Executive Independent Director
Name :	Mr. Santimoy Dey
Designation :	Non-Executive Independent Director
Name :	Mr. Hanuman Mal Choraria
Designation :	Non-Executive Independent Director
Name :	Mr. Chandra Shekhar Sarda
Designation :	Non-Executive Independent Director

KEY EXECUTIVES

Name :	Mr. Anurag Choudhary
Designation :	Chief Executive Officer
Name :	Mr. Amit Choudhary
Designation :	President, Projects
Name :	Mr. Tushar Choudhary
Designation :	President, Operations
Name :	Mr. Kamlesh Kumar Agarwal
Designation :	Chief Financial Officer
Name :	Mr. Pavninder Singh
Designation :	Nominee of BC India Investments
Name :	Mr. Rahul Kumar Yadav
Designation :	Nominee of VCIGPM Limited
Name :	Mrs. Rita Bhattacharya
Designation :	Nominee of LIC of India
Name :	Mr. Bajrang Lal Sharma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2014

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12728600	3.30
Bodies Corporate	159411310	41.33
Sub Total	172139910	44.63
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	172139910	44.63
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3000	0.00
Financial Institutions / Banks	16000	0.00
Foreign Institutional Investors	43361	0.01
Sub Total	62361	0.02
(2) Non-Institutions
Bodies Corporate	28684558	7.44
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	23221861	6.02
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	11004627	2.85
Any Others (Specify)	150619253	39.05
Non Resident Indians	229301	0.06
Trusts	157667	0.04
Foreign Corporate Bodies	150232285	38.95
Sub Total	213530299	55.36
Total Public shareholding (B)	213592660	55.37
Total (A)+(B)	385732570	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)	385732570	0.00

BUSINESS DETAILS

Line of Business :	The Company is primarily engaged in manufacturing of carbon materials and chemicals.
Products :	Coal Tar Pitch Creosote Oils Coal Tar Tape
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

• Axis Bank Limited, Corporate Banking Branch (Cbb), 1,Shakespeare Sarani, Ac Market, 3rd Floor, Kolkata - 700071, West Bengal, India
• Central Bank of India
• Citi Bank, N.A.
• DBS Bank Limited
• ICICI Bank Limited
• IDBI Bank Limited
• IndusInd Bank Limited, Savitri Towers, 3A, Upper Wood Street, Kolkata, West Bengal - 700017, India
• State Bank of India
• The Hongkong and Shanghai Banking
• Corporation Limited
• Union Bank of India
• Yes Bank Limited

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term loans
500 (previous year nil) 12.50% Redeemable Non-Convertible Debentures of Rs. 1,000,000 each	500.000	0.000
2,500,000 (previous year 2,500,000) 10% Redeemable Non-Convertible Debentures of Rs. 400 each	1000.000	1000.000
1,000 (previous year 1,000) 9.60% Redeemable Non-Convertible Debentures of Rs. 1,000,000 each	1000.000	1000.000
Rupee loans From banks	812.500	865.000
Foreign currency loans From banks	969.773	1581.048
Foreign currency loans From others	458.261	509.900
Loan against vehicles and equipments	4.565	6.246
Short Term Borrowing
Working capital loans
Rupee loans From banks	2241.789	20.222
Foreign currency loans From banks	3243.230	5653.751
Total	10230.118	10636.167

(A) Terms of repayment/ conversion

(i) Bonds / debentures

a) The Company on 24 September 2001 had issued Deep Discount Debentures of face value of Rs. 100,000 each aggregating Rs. 12,300.00 Lakhs at a discount of 90% on face value and are redeemable at par at the end of 20 years from the date of allotment. The Deep Discount Debentures carry an implicit rate of interest of approximately 12.18% compounded annually.

b) The Company on 29 October 2013 had issued 12.50% Redeemable Non-convertible Debentures of face value of Rs. 1,000,000 each aggregating Rs. 5,00.000 Millions to be redeemed at par at the end of 7 years from the date of allotment on private placement basis to Life Insurance Corporation of India.

c) The Company on 24 August 2010 had issued 10% Redeemable Non-convertible Debentures of face value of Rs. 400 each aggregating Rs. 10,000.00 Lakhs to be redeemed at par at the end of 10 years from the date of allotment on private placement basis to Life Insurance Corporation of India.

d) The Company on 28 June 2010 had issued9.60% Redeemable Non-convertible Debentures of face value of Rs. 1,000,000 each aggregating Rs. 10,00.000 Millions to be redeemed at par at the end of 10 years from the date of allotment on private placement basis to ICICI Bank Limited. These debentures can be redeemed at par on or after 7 years from the date of allotment, at the option of the either party.

Auditors 1 :
Name :	M/s S. Jaykishan Chartered Accountants
Address :	12 Ho-Chi Minh Sarani Suite No. 2D- 2F, 2nd Floor, Kolkata-700 071, West Bengal, India
Auditors 2 :	M/s B S R and Company LLP Chartered Accountants
Address :	Unit No: 603-604, 6th Floor, Tower –I Godrej Waterside, Sector- V Salt lake City Kolkata- 700 091, West Bengal, India
Memberships :	Not Available
Collaborators :
Enterprises over which the Company has control :	Equal Commodeal Private Limited, India AAT Global Limited, Hongkong (formerly Himadri Global Investment Limited) (AAT) Shandong Dawn Himadri Chemical Industry Limited, China (SDHCIL)
Enterprises owned or significantly influenced by the Key Managerial Personnel or their relatives	Himadri Credit and Finance Limited Himadri Dyes and Intermediates Limited Himadri Coke and Petro Limited Himadri Industries Limited Sri Agro Himghar Limited Himadri e-Carbon Limited
Associate :	BC India Investments

CAPITAL STRUCTURE

As on 24.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
700,000,000	Equity Shares	Rs.1/- each	Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
385,732,570	Equity Shares	Rs.10/- each	Rs.385.733 millions

Reconciliation of shares outstanding at the beginning and at the end of the reporting year

	31.03.2014
Equity Shares	Number of Shares	Rs. In Millions
Equity shares of At the commencement of the year	385,732,570	385.733
Equity Shares At the end of the year	385,732,570	385.733

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares with par value of ` 1 per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shareholders are entitled to receive dividend was declared by the Company from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

Particulars of shareholders holding more than 5% shares of fully paid up equity shares

	31.03.2014
Name of Shareholder	Number of Shares	% holding
BC India Investments	103,178,860	26.75%
VCIGPM Limited (formerly CITI Group Venture Capital International)	47,053,425	12.20%
Himadri Dyes & Intermediates Limited	98,284,310	25.48%
Himadri Industries Limited	46,140,000	11.96%

31 March 2014

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	385.733	385.733	385.733
(b) Reserves & Surplus	7956.456	8629.413	8594.135
(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)	8342.189	9015.146	8979.868
(3) Non-Current Liabilities
(a) long-term borrowings	5705.829	5833.031	4976.904
(b) Deferred tax liabilities (Net)	660.574	833.684	901.473
(c) Other long term liabilities	1097.063	710.638	402.908
(d) long-term provisions	9.147	0.428	0.000
Total Non-current Liabilities (3)	7472.613	7377.781	6281.285
(4) Current Liabilities
(a) Short term borrowings	5778.599	6102.842	5472.082
(b) Trade payables	840.254	376.819	252.915
(c) Other current liabilities	2080.997	858.611	912.397
(d) Short-term provisions	47.010	47.681	46.831
Total Current Liabilities (4)	8746.860	7385.953	6684.225
TOTAL	24561.662	23778.880	21945.378
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11394.766	8490.588	7854.687
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	559.285	3159.740	2718.715
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	819.809	469.470	469.700
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	968.405	927.582	1251.148
(e) Other Non-current assets	89.364	121.923	0.023
Total Non-Current Assets	13831.629	13169.303	12294.273
(2) Current assets
(a) Current investments	1661.317	1100.000	2242.700
(b) Inventories	3720.447	4036.084	3065.161
(c) Trade receivables	3532.227	2411.983	2384.378
(d) Cash and cash equivalents	410.836	958.607	669.288
(e) Short-term loans and advances	1357.475	1675.722	1172.172
(f) Other current assets	47.731	427.181	117.406
Total Current Assets	10730.033	10609.577	9651.105
TOTAL	24561.662	23778.880	21945.378

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	13632.759	12994.015	11233.606
		Other Income	140.842	304.003	197.504
		TOTAL (A)	13773.601	13298.018	11431.110
Less	EXPENSES
		Cost of Materials Consumed	10922.841	10605.409	8059.408
		Foreign exchange fluctuation - loss	780.212	108.637	426.800
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(526.480)	(168.296)	(246.313)
		Employees benefits expense	243.442	209.615	167.798
		Other expenses	1272.331	1059.723	1006.753
		Exceptional items	(70.499)	0.000	0.000
		TOTAL (B)	12621.847	11815.088	9414.446
Less	PROFIT / LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1151.754	1482.930	2016.664
Less	FINANCIAL EXPENSES (D)		1165.147	790.553	757.228
	PROFIT / LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(13.393)	692.377	1259.436
Less/ Add	DEPRECIATION/ AMORTISATION (F)		545.243	521.764	444.055
	PROFIT / LOSS BEFORE TAX (E-F) (G)		(558.636)	170.613	815.381
Less	TAX (H)		(167.547)	-64.864	182.216
	PROFIT / LOSS AFTER TAX (G-H) (I)		(391.089)	235.477	633.165
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3324.952	3369.104	2980.770
Less	APPROPRIATIONS
		Transfer to debenture redemption reserve	83.232	234.500	50.000
		Proposed Equity Dividend	38.573	38.573	38.573
		Tax on Proposed Equity Dividend	6.556	6.556	6.258
		Transfer to General Reserve	0.000	0.000	150.000
	BALANCE CARRIED TO THE B/S		2805.502	3324.952	3369.104
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1073.729	761.276	1463.005
	TOTAL EARNINGS		1073.729	761.276	1463.005
	IMPORTS
		Raw Materials	3284.211	4460.560	2086.642
		Stores & Spares	1.583	13.413	0.000
		Packing Materials	2.519	3.262	73.313
		Capital Goods	42.222	80.778	0.000
	TOTAL IMPORTS		3330.535	4477.235	2159.955
	Earnings Per Share (Rs.)
	Basic		(1.01)	0.61	1.64
	Diluted		(1.01)	0.61	1.56

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(2.87)	1.81	5.64
Operating Profit Margin (PBDIT/Sales)	(%)	8.45	11.41	17.95
Return on Total Assets (PBT/Total Assets}	(%)	(2.41)	0.85	4.35
Return on Investment (ROI) (PBT/Networth)		(0.07)	0.02	0.09
Debt Equity Ratio (Total Debt /Networth)		1.38	1.32	1.16
Current Ratio (Current Asset/Current Liability)		1.23	1.44	1.44

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	385.733	385.733	385.733
Reserves & Surplus	8594.135	8629.413	7956.456
Net worth	8979.868	9015.146	8342.189
long-term borrowings	4976.904	5833.031	5705.829
Short term borrowings	5472.082	6102.842	5778.599
Total borrowings	10448.986	11935.873	11484.428
Debt/Equity ratio	1.164	1.324	1.377

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	11233.606	12994.015	13632.759
		15.671	4.916

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	11233.606	12994.015	13632.759
Profit	633.165	235.477	(391.089)
	5.64%	1.81%	(2.87%)

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	----------------------
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

(Rs. In Millions)

UNSECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
70 (previous year 70) Foreign Currency Convertible Bonds of USD 100,000 each	420.699	380.725
12,300 (previous year 12,300) Deep Discount Debentures of Rs.100,000 each	1230.000	1230.000
Less: Discount on issue of Deep Discount Debentures to the extent not written off or adjusted	(710.466)	(766.888)
Sales tax deferment	20.497	27.000
Short Term Borrowing
Working capital loans
Rupee loans From banks	293.580	282.444
Foreign currency loans From banks	0.000	146.425
Total	1254.310	1299.706

The Company on 13 April 2009 had issued 70 Foreign Currency Convertible Bonds (FCCB) of face value of USD 100,000 each aggregating USD 7.000 Millios to International Finance Corporation (IFC). As per the terms of the issue, the bond holder has an option of converting these bonds into equity shares within a period of 7 years from the date of issue at an initial conversion price of Rs. 13.50 per equity share of face value of Rs. 1 each at the foreign exchange rate prevailing on the date of conversion request. In case the conversion option is not exercised, the outstanding FCCBs would be redeemed at par together with interest accrued at the rate of 6 months LIBOR + spread of 3.35% per annum accrued on a compounded 6 monthly basis. As at 31 March 2014, conversion option has not been exercised in respect of the above FCCBs. Till 31 March 2014, the Company made provision of Rs. 93.558 Millions (previous year Rs. 619.86 Lakhs) as interest on outstanding FCCBs.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10534823	03/11/2014	636,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL  (WEST), MUMBAI, Maharashtra - 400013, INDIA	C35912963
2	10535696	24/09/2014	725,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL  (WEST), MUMBAI, Maharashtra - 400013, INDIA	C36420198
3	10516147	25/06/2014	574,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL  (WEST), MUMBAI, Maharashtra - 400013, INDIA	C17523754
4	10493607	08/04/2014	500,000,000.00	IDBI Bank Limited	IDBI HOUSE, 44, SHAKESPEARE SARANI, KOLKATA, West  Bengal - 700017, INDIA	C04109765
5	10475745	02/05/2014 *	500,000,000.00	Axis Trustee Services Limited	Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, INDIA	C06319826
6	10435817	09/07/2013	1,110,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B79188983
7	10435563	27/01/2014 *	850,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH (CBB), 1, SHAKESPEARE SA  RANI, AC MARKET, 3RD FLOOR, KOLKATA, West Bengal -  700071, INDIA	B95516514

* Date of charge modification

FIXED ASSETS

• Freehold Land
• Leasehold Land
• Buildings
• Plant and equipments
• Furniture and fixtures
• Vehicles

FINANCIAL PERFORMANCE

Total Revenue of the Company for FY 2014 increased by 3.58 % to Rs. 13773.601 Millions from Rs. 132980.18 Millions during the previous year. EBIDTA for the year, excluding the effect of foreign exchange fluctuation loss/gain, provision for doubtful debts/advances/contingencies and other income was Rs. 1784.009 Millions as compared to Rs. 1287.564 Millions for the previous year. During FY 2014, the Company incurred a loss after tax of Rs. 391.089 Millions as compared to Profit after tax (PAT) of Rs. 235.477 Millions in the previous year.

On consolidated basis, the Total Revenue from operations of the Company for FY 2014 marginally increased by 1.80% to Rs. 140,896.82 Millions from Rs. 13840.289 Millions during the previous year. EBITDA for the year, excluding the effect of foreign exchange fluctuation loss/gain, provision for doubtful debts/advances/contingencies and other income, was Rs. 1748.425 Millions as compared to Rs. 1170.175 Millions for the previous year. During FY 2014, the Company incurred a loss after tax of Rs. 569.821 Millions as compared to Profit after tax of Rs. 94.379 Millions in the previous year.

The Company incurred losses during the year due to higher finance cost, depreciation and foreign exchange fluctuation.

MANAGEMENT DISCUSSION AND ANALYSIS

MACROECONOMIC OVERVIEW

The Indian economy continued to experience difficult market conditions due to subdued industrial activity, low investment levels in infrastructure projects and weak business sentiments. In FY 2014, India’s GDP grew by 4.7%, as compared to 4.5% in FY 2013. Inflation has showed moderation in the recent months with WPI declining to 5.7% in March 2014 from a high of 7.5% in November 2013. CPI also experienced a similar trend and decreased to 8.3% in March 2014 from 11.2% in November 2013.

During the last quarter of the fiscal the rupee stabilized and strengthened against the US dollar, providing some

relief to the Indian importers. With the improvement in the twin deficit problem of current account deficit (CAD) and fiscal deficit, some recovery was experienced towards the end of FY 2014.

The Indian economy is expected to recover in FY 2015, driven by expected reforms from the new central government. The newly elected stable government should lead to an overall improved business and consumer sentiment. India is projected to grow at over 6% in 2014 as global demand recovers and domestic investment increases. The World Steel Association has predicted steel demand in India to grow by 3.3% to 76.2 Million MT in 2014. The domestic aluminium industry is also expected to expand in the near term. The economy is expected to perform better this year as reflected in the improving business environment and with the expectations of a recovery in the industrial production. The global economy is stabilising, and better growth is expected in 2014. Indian export activity is also on the pickup mode.

The global economy grew by approximately around 2.9% in FY 2013, the slowest rate since 2009. The Eurozone continued to have a relatively subdued growth, while the Chinese economy is focusing on a more balanced growth strategy.

COMPANY OVERVIEW

Himadri Chemicals and Industries Limited is a public company domiciled and headquartered in India. It is incorporated under the Companies Act, 1956 and its shares are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Company is primarily engaged in manufacturing of carbon materials and chemicals. The Company has operations in India and caters to both domestic and international markets. The Company also has a wholly-owned subsidiary in India in the name of Equal Commodeal Private Limited (w.e.f 8 march 2014) and step down subsidiary in the name of AAT Global Limited (previously known as Himadri Global

Investment Limited) incorporated in Hong Kong, an another subsidiary having 94% shareholding in Shandong Dawn Himadri Chemical Industry Limited incorporated in China.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2014

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Half Year Ended
		30.09.2014	30.06.2014	30.09.2014
		(Unaudited)
1.	Income from Operations
	a) Net Sales/ Income from Operations	3569.800	3514.700	7084.500
	b) Other Operating Income	2.400	0.000	2.400
	Total Income From Operations	3572.200	3514.7	7086.900
2.	Expenditure
	Cost of Material Consumed	2928.400	2695.500	5623.900
	Purchase of Stock In Trade	0.000	0.000	0.000
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	(148.700)	(17.500)	(166.200)
	Employee Benefits Expenses	75.400	65.600	141.000
	Depreciation and Amortization Expenses	142.500	138.400	280.900
	Other Expenses	298.100	316.900	615.000
	Total	3295.700	3198.900	6494.600
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	276.500	315.800	592.300
4.	Other Income	(36.100)	113.300	77.200
5.	Profit Before Interest and Exceptional Items (3+4)	240.400	429.100	669.500
6.	Financial Cost	293.600	255.900	549.500
7.	Profit After Interest but before Exceptional Items (5-6)	(53.200)	173.200	120.000
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	(53.200)	173.200	120.000
10.	Tax Expense	(19.700)	29.600	9.900
11.	Net Profit from Ordinary Activities after Tax (9-10)	(33.500)	143.600	110.100
12.	Extraordinary Item (net of expense)	---	---	---
13.	Net Profit for the period (11-12)	(33.500)	143.600	110.100
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	385.700	385.700	385.700
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised	(0.09)	0.37	0.28
17.	Debenture Redemption Reserves			459.300
18.	Paid-up debt capital			10895.700
19.	Debt Equity Ratio			12.800
20.	Debt Service Coverage Ratio			11.900
21.	Interest Service Coverage Ratio			19.00
A.	PARTICULAR OF SHAREHOLDING
	Public Shareholding
	-Number of Shares	213592660	213592660	213592660
	- Percentage of Shareholding	55.37	55.37	55.37
	Promoters and Promoter Group Shareholding
	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	172139910	172139910	172139910
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100	100	100
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	44.63	44.63	44.63

Particulars	Quarter Ended 30.09.2014
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	1
Received during the quarter	10
Disposed of during the quarter	8
Remaining unresolved at the end of the quarter	3

Standalone Segment Wise Revenue, Results and Capital Employed under Clause 41 of the listing agreement

(Rs. in millions)

Sr. No.	Particulars	Quarter Ended		Six Months Ended
		30.09.2014	30.06.2014	30.09.2014
		(Unaudited)	(Unaudited)	(Unaudited)
1	Segment Revenue
	a) Carbon materials and chemicals	3559.900	3500.000	7059.900
	b) Power	29.200	47.100	76.300
	Total	3589.100	3547.100	7136.200
	Less: Inter-Segment Revenue	16.900	32.400	49.300
	Net Sales/ income from operations	3572.200	3514.700	7086.900
2	Segment Results (Profit / (Loss) before tax and interest from Each segment)
	a) Carbon materials and chemicals	256.400	283.700	540.100
	b) Power	15.800	34.000	49.800
	Total	272.200	317.700	589.900
	Less: (i) Finance Cost	293.600	255.900	549.500
	(ii) Other Un-allocable Expenditure (Net off Un-allocable Income)	31.800	(111.400)	(79.600)
	Total Profit / (Loss) Before Tax	(53.200)	(173.200)	120.000
3	Capital Employed (Segment assets-Segment liabilities)
	a) Carbon materials and chemicals	18625.600	19530.400	18625.600
	b) Power	580.900	557.400	580.900
	Total capital employed in segments	19206.500	20087.800	19206.500
	Add: Unallocable corporate assets less corporate liablities	(10721.600)	(11554.500)	(10721.600)
	Total capital employed	8484.900	8533.300	8484.900

STATEMENT OF ASSETS AND LIABILITIES

PARTICULARS	30.09.2014 Unaudited
Equity and liabilities
Shareholders' fund
Share capital	385.700
Reserve & surplus	8099.200
Sub-total - Shareholders' funds	8484.900
Non - current liabilities
Long term borrowings	5485.200
Deferred Tax liabilities	658.100
Other current liabilities	1122.100
Long term provisions	9.100
Sub-total - Non-current liabilities	7274.500
Current liabilities
Short term borrowings	4839.200
Trade payables	1105.500
Other current liabilities	863.800
Short term provisions	31.900
Sub-total - Current liabilities	6840.400
Total - Equity & Liabilities	22599.800
Assets
Non-current assets
Fixed assets	11705.100
Non-current investment	819.800
Long term loans & advances	1151.700
Other non-current assets	90.600
Sub-total - Non-current Assets	13767.200
Current assets
Current Investments	210.000
Inventories	4062.600
Trade receivables	2843.200
Cash & bank balances	421.900
Short term loans & advances	1268.600
Other current assets	26.300
Sub-total - Current Assets	8832.600
Total – Assets	22599.800

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.61
UK Pound	1	Rs.93.49
Euro	1	Rs.71.37

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.