MIRA INFORM REPORT

Report No. :	304482
Report Date :	22.01.2015

IDENTIFICATION DETAILS

Name :	PRAKASH STEELAGE LIMITED
Registered Office :	701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai – 400 026, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	09.05.1991
Com. Reg. No.:	11-061595
Capital Investment / Paid-up Capital :	Rs.175.000 millions
CIN No.: [Company Identification No.]	L27106MH1991PLC061595
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMP07782F
PAN No.: [Permanent Account No.]	AAACP6673K
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Exporting of Stainless Steel Tubes and Pipes.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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 :	Clear
Comments :	Subject is a well-established company having satisfactory track. The company possesses an above average financial profile marked by healthy networth, and moderate gearing along with working capital intensive operations. Management has reported an improvement in its sales volume during FY 14. The ratings also take into consideration the susceptibility of its profitability to volatility in prices of inputs and in foreign exchange rates. However, trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of established market position, the subject 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	30.08.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating: A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	30.08.2014

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

Name :	Mr. Surendra Tiwari
Designation :	DGM – Finance
Contact No.:	91-22-66134500
Date :	20.01.2015

LOCATIONS

Registered Office/ Corporate Office :	701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai – 400 026, Maharashtra, India
Tel. No.:	91-22-66134500
Fax No.:	91-22-66134599
E-Mail :	investorsgrievances@prakashsteelage.com exports@prakashsteelage.com sales@prakashsteelage.com info@prakashsteelage.com
Website :	http://prakashsteelage.com
Factory 1 :	Survey No.46/1, Parjai Road, Village: Kherdi, Silvassa – 396 230, Union Territory of Dadra and Nagar Haveli, India
Factory 2 :	Plot No.131/1, Umbergaon, Sanjan Road, District Valsad – 396 170, Gujarat, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Prakash C. Kanugo
Designation :	Chairman and Managing Director
Date of Birth/ Age :	02.07.1953
Date of Appointment :	09.05.1991
Name :	Mr. Ashok M. Seth
Designation :	Whole-time Director and Chief Finance Officer
Date of Birth/ Age :	11.05.1973
Date of Appointment :	09.11.1993
Name :	Mr. Hemant P. Kanugo
Designation :	Whole-time Director
Date of Birth/ Age :	14.10.1979
Date of Appointment :	30.09.2003
Name :	Mr. Kamal P. Kanugo
Designation :	Whole-time Director
Date of Birth/ Age :	11.03.1984
Date of Appointment :	16.05.2008
Name :	Dr. Bipin C. Doshi
Designation :	Independent Director
Name :	Mr. Himanshu J. Thaker
Designation :	Independent Director
Name :	Mr. Gautam Chand Jain
Designation :	Independent Director
Name :	Mr. A. Prakashchandra Hegde
Designation :	Independent Director

KEY EXECUTIVES

Name :	Ms. Pallavi P. Shedge
Designation :	Company Secretary and Compliance Officer
Name :	Mr. Surendra Tiwari
Designation :	DGM – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Category of Shareholders	No. of Shares	% of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	360437	2.06
Any Others (Specify)	11366587	64.95
Directors/Promoters & their Relatives & Friends	6889713	39.37
Group Companies	4476874	25.58
Sub Total	11727024	67.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11727024	67.01
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	740218	4.23
Foreign Institutional Investors	739992	4.23
Sub Total	1480210	8.46
(2) Non-Institutions
Bodies Corporate	3356540	19.18
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	331416	1.89
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	599799	3.43
Any Others (Specify)	5050	0.03
Clearing Members	2206	0.01
Non Resident Indians	2844	0.02
Sub Total	4292805	24.53
Total Public shareholding (B)	5773015	32.99
Total (A)+(B)	17500039	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)	17500039	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl.No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)
		No. of Shares held	As a % of grand total	No	As a percentage	As a % of grand total
1	Prakash C Kanugo	37,83,500	21.62	0	0.00	0.00
2	AMS Trading and Investment Private Limited	28,76,000	16.43	1826593	63.51	10.44
3	Seth Iron and Steel Private Limited	14,90,000	8.51	0	0.00	0.00
4	Kirti P Kanugo	5,83,074	3.33	0	0.00	0.00
5	Hemant Prakash Kanugo	5,61,753	3.21	0	0.00	0.00
6	Kamal Prakash Kanugo	5,57,752	3.19	0	0.00	0.00
7	Vimal Prakash Kanugo	5,05,159	2.89	0	0.00	0.00
8	Ashok M Seth	4,48,400	2.56	0	0.00	0.00
9	Babita Prakash Kanugo	3,00,075	1.71	0	0.00	0.00
10	Prakash Chhaganlal Kango HUF	2,60,437	1.49	0	0.00	0.00
11	Seth Steelage Private Limited	1,10,874	0.63	0	0.00	0.00
12	Seth Ashok Mafatlal	50,000	0.29	0	0.00	0.00
13	Dheliben Mafatlal Seth	50,000	0.29	0	0.00	0.00
14	Mafatlal Chogamal Seth	50,000	0.29	0	0.00	0.00
15	Mafatlal Chogamal Seth HUF	50,000	0.29	0	0.00	0.00
16	Nirmala Ashok Seth	50,000	0.29	0	0.00	0.00
	Total	1,17,27,024	67.01	1826593	15.58	10.44

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Balmiki Agencies Private Limited	970649	5.55
2	Mentor Capital Limited	850232	4.86
3	General Insurance Corporation of India	740218	4.23
4	Cresta Fund Limited	382361	2.18
5	Emerging India Focus Funds	357631	2.04
6	Sunidhi Capital Private Limited	334259	1.91
7	Lilygold Merchants Private Limited	271554	1.55
8	Swagatm Marketing Private Limited	250236	1.43
9	Trisons Metalex Private Limited	183000	1.05
	Total	4340140	24.80

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Balmiki Agencies Private Limited	970649	5.55

BUSINESS DETAILS

Line of Business :

Manufacturing and Exporting of Stainless Steel Tubes and Pipes.

Products :

Item Code No. (ITC Code)	7304.90
Product Description	Stainless Steel Seamless Pipes /Tubes
Item Code No. (ITC Code)	7306.90
Product Description	Stainless Steel Welded Pipes / Tubes

Exports :

Products :

• Finished Goods

Countries :

• North America
• South East Asia
• Africa
• Middle East
• Europe

Imports :

Countries :

• China
• Taiwan

Terms :

Selling :

Cash and Advance Payment

Purchasing :

Cash and Advance Payment

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 :	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

No. of Employees :

700 (Approximately)

Bankers :

• Bank of Baroda, Gulalwadi Branch, 24/30, 2^nd Panjarapole Lane, C.P. Tank Road, Mumbai – 400 004, Maharashtra, India
• Union Bank of India
• Bank of India
• DBS Bank Limited

Banker Name	Vijaya Bank
Branch Address	Overseas Branch, Maker Chambers-IV, Nairman Point, Mumbai – 400 021, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Total: Rs.1500.000 millions (CC/ TL/ LC)
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loans	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG-TERM BORROWINGS
Term Loans
Indian rupee loan from Bank	138.331	43.755
Vehicle Loans
From Banks	2.679	1.944
From NBFC's	0.000	0.000
SHORT-TERM BORROWINGS
Cash Credit from Banks	1757.921	1425.902
Buyers' Credit from Banks	117.445	74.122
Working Capital loan from Bank	60.000	50.000
Export Packing Credit from Banks	81.206	148.694
Bill Discounting from Banks	0.000	26.244
Total	2157.582	1770.661

Notes:

Long-Term Borrowings

Indian rupee loan from Banks (secured) carries interest @ 15.50 % p.a. (previous year 15.50% p.a.). The loan is repayable in 84 monthly installments of Rs.1.461 millions each along with interest from the date of loan, viz., 10th July, 2008 the loan is secured by way of mortgage of factory land and building, and hypothecation of plant and machinery of Company at Umbergaon. (First pari passu charge between Vijaya Bank and Bank of Baroda )

Indian rupee loan from Banks (secured) carries interest 13% p.a. to 14.25 % p.a. The loan is repayable after 15 months from the date of first disbursement (date: 18.05.2013) in 59 monthly equal installments of Rs.4.170 millions and last installment will be of Rs.3.970 millions along with interest from the date of loan, Interest and other charges to be paid as and when debited. This loan is secured by way of mortgage of factory land and building, and hypothecation of plant and machinery of Company at Umbergaon. (First pari passu charge with Vijaya Bank and Bank of Baroda). Also second pari passu charge on current assets of the Company including stocks and book debts.

Vehicle loans from Banks (secured) carries interest in the range of 7.50% p.a. to 12.50% p.a. (previous year 7.50% p.a. to 10.75% p.a.) All the loans are repayable in 34 - 55 monthly installments from the date of disbursement. These loans are secured against hypothecation of respective Vehicles and Post Dated Cheques for Principal and Interest payable thereon.

Vehicle loan from NBFC (secured) outstanding as at end of the previous year carried interest of approximately 11.50% p.a. The loan was repayable in 34 monthly installments from the date of disbursement and is secured against hypothecation of respective vehicle and Post Dated Cheques for Principal and Interest payable thereon.

Short-Term Borrowings

Cash Credit from Banks (Secured) and Working Capital Loan from Bank (Secured) are repayable on demand and carries interest @ 12.20% to 12.85% p.a., (previous year 12.75% to 16% p.a.), Buyers Credit (Secured) represents Foreign Currency Buyers Credit from various Banks which carries interest ranging from 1 % to 5.25 % p.a. (previous year 2% to 5.25% p.a.) having a tenor of maximum upto 180 days., Export Packing Credit from Banks (Secured) represents export packing Credit facility from various banks. The tenor of the facility is maximum upto 180 days and the rate of interest (Foreign Currency facility) is Margin + LIBOR i.e. approximately 3.50% to 5 % p.a. (previous year 3.50% to 5% p.a.) and rate of interest (Indian Currency facility) is @ 13.00% p.a. and Bill Discounting from Banks (Secured) outstanding as at the end of the previous year represents bill discounted with various banks. The tenor of the loan is in the range of 40 - 120 days and the rate of interest (local bill discounting) is 10.25% p.a. to 11% p.a. and rate of interest (foreign bill discounting) is in the range of 4 % to 5% p.a., All these loans are secured by hypothecation of Stocks of Raw Material, Stocks-in-process, Finished Goods, stores and spares (not relating to plant and machinery), bills receivables, book debts and all other current assets and movables (both present and future) at Silvassa and Umargaon [First Pari Passu charges amongst Vijaya Bank, Bank of Baroda, Union Bank Of India, Bank of India and DBS Bank Limited., and the whole of the movable plant and machinery including all the spare parts and all other movable assets such as furniture, fixture, fittings, vehicles and equipments (both present and future) at Silvassa (First Pari Passu charges amongst the above mentioned banks] and at Umargaon (Second Pari Passu charges amongst above mentioned banks) and collateral securities in form of first pari-passu charge on piece and parcel of non agricultural land along with the building at Silvassa and office premises no 101 and 102 at Islampura Street, at Mumbai, 701, Mahalaxmi Chambers, at Mumbai, Bungalow unit No.C 26, at Swapan Lok Complex, Lonavla, District Pune, Plot at Ohm Industrial Infrastructure Park, Umbergaon, District Valsad, State Gujrat and two residential Plot No.B 30 and C 20, at Sheetal Township project, Umbergaon, District : Valsad , State Gujrat belonging to three Directors and their relatives and personal guarantee of four directos and their relatives

Banking Relations :	--
Statutory Auditors :
Name :	Khandelwal Jain and Company Chartered Accountants
Address :	12-B, Baldota Bhavan, 5^th Floor, 117, M.K. Road, Churchgate, Mumbai – 400 020, Maharashtra, India
Name :	D.C. Bothra and Company Chartered Accountants
Address :	297, Tardeo Road, Willie Mansion, 1^st Floor, Nana Chowk, Mumbai – 400 007, Maharashtra, India
Name :	Batliboi and Purohit Chartered Accountants
Internal Auditors :
Name :	Anand Jain and Associates Chartered Accountants
Subsidiary Company :	Pioneer Stainless and Alloy – F.Z.E., UAE (w.e.f. 10^th April, 2013)
Enterprise of which key management person (Shri Prakash Kanugo) is proprietor :	Sunrise Metal Industries
Associates / Enterprises over which directors and / or their relatives has significant influence :	AMS Trading and Investments Pvt. Limited Seth Iron and Steel Pvt. Limited. Seth Steelage Pvt. Limited Prakash Stainless Pvt. Limited PCK Metal Pvt. Limited. Seth Carbon and Alloys Pvt. Limited Prakash and Daga Infra Projects Pvt. Limited Prakash C. Kanugo (HUF) Ashok M. Seth (HUF) Prakash Integrated Hi-Tech Steel and Metal Cluster Private Limited Chandan and Kanugo Land Developer Hemant and Co. Prakash Land Developer Hemant P Kanugo (HUF) Vimal P Kanugo (HUF)

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17500039	Equity Shares	Rs.10/- each	Rs.175.000 millions

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

Equity shares	As at 31^st March, 2014
	No. of Shares	Amount (Rs. in millions)
At the beginning of the period	17500039	175.000
Issued during the year	--	--
Outstanding at the end of the period	17500039	175.000

b) 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 shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors, in their meeting on 29^th May, 2014, proposed a final dividend of Re.1/- per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 13^th August, 2014. The total dividend appropriation for the year ended 31^st March, 2014 amounted to Rs.17.500 millions excluding corporate dividend tax of Rs.2.974 millions.

During the year ended 31^st March, 2013, the amount of final dividend recognized as distributions to equity shareholders was Re.1/- per equity share. The total dividend appropriation for the year ended 31^st March, 2013 amounted to Rs.17.500 millions excluding corporate dividend tax of Rs.2.974 millions.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

c) Details of shareholders holding more than 5% shares in the Company

Particulars	As at 31^st March, 2014
	No. of Shares	% of holding in the class
Equity shares of Rs.10 each fully paid
Prakash C. Kanugo	3783500	21.62%
AMS Trading and Investment Private Limited	2876000	16.43%
Seth Iron and Steel Private Limited	1490000	8.51%
Balmiki Agencies Private Limited	970649	5.55%

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	175.000	175.000	175.000
(b) Reserves & Surplus	1620.431	1475.412	1355.617
(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)	1795.431	1650.412	1530.617
(3) Non-Current Liabilities
(a) Long-term borrowings	391.010	55.699	62.739
(b) Deferred tax liabilities (Net)	72.377	64.954	59.586
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	6.296	7.832	5.750
Total Non-current Liabilities (3)	469.683	128.485	128.075
(4) Current Liabilities
(a) Short term borrowings	2188.786	1959.306	1852.015
(b) Trade payables	1585.359	1350.252	1395.177
(c) Other current liabilities	260.525	217.326	343.785
(d) Short-term provisions	70.968	41.374	60.517
Total Current Liabilities (4)	4105.638	3568.258	3651.494
TOTAL	6370.752	5347.155	5310.186
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	821.251	704.107	767.600
(ii) Intangible Assets	18.232	2.909	1.051
(iii) Capital work-in-progress	6.819	118.129	34.381
(iv) Intangible assets under development	0.000	20.070	0.000
(b) Non-current Investments	4.036	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	100.279	87.869	77.356
(e) Other Non-current assets	8.331	25.885	1.666
Total Non-Current Assets	958.948	958.969	882.054
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2054.578	1876.954	1451.015
(c) Trade receivables	2791.798	2019.733	2097.488
(d) Cash and cash equivalents	182.459	145.217	150.369
(e) Short-term loans and advances	326.492	282.845	677.007
(f) Other current assets	56.477	63.437	52.253
Total Current Assets	5411.804	4388.186	4428.132
TOTAL	6370.752	5347.155	5310.186

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue From Operations (Net)	9442.179	7932.153	6838.044
		Other Income	41.176	96.446	55.454
		TOTAL (A)	9483.355	8028.599	6893.498
Less	EXPENSES
		Purchases	6749.251	5155.681	3075.600
		Conversion of land into stock-in-trade	8.818	0.000
		Raw Material Consumed	1923.487	2383.765	2647.556
		Increase / (Decrease) In Stock	(338.457)	(631.754)	20.547
		Stores & Spares Consumed	93.913	153.699	121.228
		Employee Benefit Expenses	99.951	105.658	91.823
		Other Expenses	276.700	283.710	356.945
		Prior Period Adjustments	(0.031)	1.100	1.598
		Exceptional Items	(17.500)	0.000	0.000
		TOTAL (B)	8796.132	7451.859	6315.297
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		687.223	576.740	578.201
Less	FINANCIAL EXPENSES (D)		353.210	298.509	244.498
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		334.013	278.231	333.703
Less/ Add	DEPRECIATION/ AMORTISATION (F)		80.867	72.372	65.138
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		253.146	205.859	268.565
Less	TAX (H)		87.654	65.589	99.119
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		165.492	140.270	169.446
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		578.510	508.714	409.607
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	50.000	50.000
		Proposed Dividend & Tax on Dividend	20.474	20.474	20.339
	BALANCE CARRIED TO THE B/S		673.528	578.510	508.714
	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods	1260.724	976.976	582.593
	TOTAL EARNINGS		1260.724	976.976	582.593
	IMPORTS
		Material	799.065	882.821	1158.889
		Capital Goods	54.542	14.642	9.662
		Stores & Spares	2.480	3.179	2.774
	TOTAL IMPORTS		856.087	900.642	1171.325
	Earnings / (Loss) Per Share (Rs.)		9.46	8.02	9.68

QUARTERLY RESULTS

PARTICULARS	30.06.2014	30.09.2014
Unaudited	1^stQuarter	2^nd Quarter
Net Sales	2065.700	2512.800
Total Expenditure	1867.500	2286.100
PBIDT (Excl OI)	198.300	226.700
Other Income	16.200	24.500
Operating Profit	214.400	251.200
Interest	89.000	93.400
Exceptional Items	0.000	0.000
PBDT	125.400	157.800
Depreciation	28.600	28.600
Profit Before Tax	96.800	129.200
Tax	33.700	42.600
Provisions and contingencies	0.000	0.000
Profit After Tax	63.200	86.600
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	63.200	86.600

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.75	1.77	2.48
Operating Profit Margin (PBDIT/ Sales)	(%)	7.28	7.27	8.46
Return on Total Assets (PBT/Total Assets}	(%)	3.98	3.95	5.09
Return on Investment (ROI) (PBT/Networth)		0.14	0.12	0.18
Debt Equity Ratio (Total Debt/Networth)		1.44	1.22	1.25
Current Ratio (Current Asset/Current Liability)		1.32	1.23	1.21

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	175.000	175.000	175.000
Reserves & Surplus	1355.617	1475.412	1620.431
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1530.617	1650.412	1795.431
Long Term borrowings	62.739	55.699	391.010
Short Term borrowings	1852.015	1959.306	2188.786
Total borrowings	1914.754	2015.005	2579.796
Debt/Equity ratio	1.251	1.221	1.437

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)	6,838.044	7,932.153	9,442.179
		16.000	19.037

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)	6,838.044	7,932.153	9,442.179
Profit	169.446	140.270	165.492
	2.48%	1.77%	1.75%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM BORROWINGS:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current Maturities of Long Term Borrowings	61.837	37.931	42.645

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

FINANCIAL PERFORMANCE

The income from operations for the year has increased to Rs.9442.179 millions as compared to Rs.7932.153 millions of previous year reflecting a growth of 19.04%. The Profit Before Tax for the year was Rs.253.146 millions as against Rs.205.859 millions in the previous year reflecting an increase of Profit by 22.97%. The Net Profit After Tax also increased by 17.98% at Rs.165.492 millions as compared to Rs.140.270 millions during previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT FOR THE FINANCIAL YEAR 2013-2014

Industry Overview

The year 2013-14 marked a subtle turnaround in the fortunes of the global economy. Europe witnesses greater financial stability and there were signs of revival in a number of its constituent nations, led by Germany and U.K.

The U.S. too saw better employment numbers and an improvement in its growth prospects which prompted its leaders to consider withdrawing the easy money policies that bolstered the economy. Emerging markets, however, experienced some deceleration in their growth.

On the domestic front, the economy seems to have finally bottomed out. After dipping to 4.5% during the previous year, GDP growth recovered to grow at 4.9%, largely due to revival in agriculture growth. However, the volatile rupee, stubborn inflation and stagnant industrial production continued to be a drag on the economy. Looking ahead, there are indications of a turnaround on account of better global growth, an improvement in export competitiveness and the implementation of recently approved investment projects. Additionally, the formation of a strong and stable government at the Centre is expected to augur well for India's economy due to speedier implementation of progressive policies.

Until now, stagnant domestic growth hurt consumer sentiments which were reflected in subdued demand and consumption. Further, the inflationary impact on raw material prices, largely due to the depreciation in Rupee, led to frequent price increases. Domestic demand for the Company's product was comparatively although not as good as expected. Demand from the export region was relatively better and encouraging than the domestic region which remained stagnant.

At the international business level, despite a persistently challenging global environment, some markets where the Company operates showed sign of recovery. A tight Control on expenses and lower raw material inflation helped the international operations of the Company to deliver a strong performance despite difficult market conditions.

India has become the second best in terms of growth amongst the top ten steel producing countries in the world and a net exporter of steel during 2013–14. Steel production in India recorded a growth rate of 4.8 per cent in February, 2014 over February, 2013. The cumulative growth during April–February, 2013–14 stood at 4.2 per cent over the corresponding period of the previous year.

Steel contributes to nearly two per cent of the gross domestic product (GDP) and employs over 500,000 people.

The total market value of the Indian steel sector stood at US$ 57.8 billion in 2011 and is expected to touch US$ 95.3 billion by 2016. The infrastructure sector is India's largest steel consumer, thereby attracting investments from several global players. Owing to this connection with core infrastructure segments of the economy, the steel industry is of high priority right now. Also, steel demand is derived from other sectors like automobiles, consumer durables and infrastructure; therefore, its fortune is dependent on the growth of these user industries. Steel castings Industry is considered to be the backbone of engineering industry serving Automotive, Agricultural, Mining and Earthmoving Equipment Industry and almost all downstream engineering industry. The FY 2013-14 was challenging with lower growth in industrial production mainly due to continuing high rate of inflation and depreciation of the rupee. These factors had an adverse impact on the economy resulting in lower GDP growth rate. Rising input costs, slow pace of industrial production, infrastructure development and the impact of global slowdown constrained the performance of the industry. All most all sectors registered lower growth rate during FY 2013-14. Hence, it affects Steel industry as well. The Indian steel industry is largely iron-based through the blast furnace (BF) or the direct reduced iron (DRI) route. Indian steel industry is highly consolidated. About 60% of the crude steel capacity is resident with

Integrated Steel Producers (ISP). But the changing ratio of hot metal to crude steel production indicates the increasing presence of secondary steel producers (non integrated steel producers) manufacturing steel through scrap route, enhancing their dependence on imported raw material.

With urban population increasing globally, there is a greater need for steel to build public-transport infrastructure. Emerging economies will also continue to be a major driver of demand as these necessitate a huge amount of steel for urbanisation and industrialisation. The sector is expected to see an investment to the tune of about Rs. 2 trillion (US$ 33.06 billion) in the coming years.

India's rank in the world order of steel production remained unchanged at fourth slot with an output of 81.2 million tonnes, despite logging the highest growth of 5.05% among major producing nations in 2013.

There was no change in the top three steel producing nations with China, Japan and the US retaining their slots in the respective order in 2013, World Steel Association (WSA) data revealed.

Business Overview

We are into the business of manufacturing stainless steel pipes, tubes for more than 22 years. Since inception, they have made efforts to place our self in a competitive position in the industry by proactively responding to our customer requirements. The Company has emerged as one of the leading manufacturers of stainless steel welded, seamless pipes and tubes in India and caters to both the markets domestic as well as International. At present the Company has the customers from oil and gas sector, power sector, desalination and nuclear power plants, Engineering, Capital Goods, Chemical, Sugar and various other core sector Industries. We want to leverage our strength to our benefit in future so as to become the topmost player in the stainless steel tube industry. We wish to continue to supply our products to corporate houses, increase our market share in the industry, produce quality products at the competitive rates, adopt one of the best human resource practices and also secure various certifications for standards and quality improvement. We plan to boost our exports by participating in trade fairs and exhibitions all over the World.

The Company is manufacturing stainless steel welded, seamless pipes and tubes and has setup two industrial plants at Silvassa and Umbergaon. Having set up its first Plant at Silvassa in the year 1996 with a capacity of 4,000 MT p.a., the Company expanded its capacity by setting up another plant at Umbergaon in Gujarat and presently has total capacity of 20,500 MT during the year 2013-14. Further by considering the potential of growth in Real estate, it has been decided to enter into construction business through strategic alliance which will strengthen the Company's performance in one more pillar of growth.

Prakash Steelage Limited employs extensive internal controls, company-wide uniform reporting guidelines and additional measures, including employee training and continuing education, to ensure that its financial reporting is conducted in accordance with accepted accounting principles. Your Company always believed that keeping a keen ear to market demand and feedback goes a long way. We have kept the customer at the center of all our strategies and this approach of Customer Centricity is paying dividends.

Industrial Structure

Indian iron and steel industry can be divided into two main sectors Public Sectors and Private Sectors. Further on the basis of routes of production, the Indian industry can be divided into two types of producers. Integrated producers: Integrated producers are those that can convert iron ore into steel; Secondary producers: Secondary producers are the mini steel plants which make steel by melting scrap or sponge iron or a mixture of the two.

There are currently 100 small and medium scale units and 4 to 5 organised units engaged in manufacturing of stainless steel welded, seamless pipes and tubes. The domestic demand presently for stainless steel welded pipes and a tube is about 1,00,000 MT which is expected to increase up to 2,75,000 MT by the year 2015/16. The top players globally in this segment are Valtimet/ Tubacex/ Centravis. Company specialises in meeting specific requirements of customers and offers complete solution for stainless steel welded and seamless pipes and tubes. The type of product varied based on the type, shape and size of the same some of which are as listed below:

• S.S. Welded Tubes

• S.S. Welded Pipes

• S.S. EFW Pipes

• S.S. Seamless Tubes

• S.S. Seamless Pipes

• Square Tubes

• U Bend Tubing

• S.S. Seamless Mother Hollows

Subsidiaries and Strategic Alliance

During the year the Company has incorporated its wholly-owned subsidiary, “Pioneer Stainless and Alloys, FZC” at Ajmen Free Zone, Dubai U.A.E with an object of import and export of Steel and Basic Steel products to Asian and European countries.

During the year the Company embarked on a new journey by expanding its business activities in one more stream, by making a Strategic Alliance with M/s. Karagwal Developers Private Limited for developing its idle land located at Taluka Umbergaon, Village Palgam, District Valsad, Gujarat. Under the said Strategic Alliance the Company has introduced “Krishna Industrial Park”, where the Company has built industrial plots for factories, warehouses, workshops, service stations, etc. It is the ideal destination to set-up small and medium-sized enterprises like textile industries, stainless steel industries, manufacturing units, automobile industries, food and agriculture industries, mineral industries, cold storage, warehouse, etc. with world-class infrastructure facilities.

Outlook

The outlook for the Company's Business in future is very good. The Management expects CAGR of over 30% during next five years. The Government of India has allowed 100 per cent FDI through the automatic route in the Indian steel sector. It has significantly reduced the duty payable on finished steel products and has streamlined the associated approval process. The demand for steel is increasing and the prices have also firmed up during the year under report. The increase in steel making capacity by the Company will be absorbed by the increasing demand for steel products. India's growth story was, till recently, quite attractive in comparison with many other developed and developing economies. Reforms in global economy indicate positive signal for overseas market.

UNSECURED LOANS

Particulars	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG-TERM BORROWINGS
Term Loans
Indian rupee loan from Promoter Director	250.000	0.000
Working Capital Loan
Indian rupee loan from NBFC	0.000	10.000
SHORT-TERM BORROWINGS
Working Capital loan from Bank	0.000	25.000
Bill Discounting from Bank	31.415	7.944
Bill Discounting from a NBFC	140.799	151.400
Loan from NBFC	0.000	50.000
Total	422.214	244.344

Notes:

Long Term Borrowings

Indian rupee loan from Promoter Director (Unsecured) taken from a proprietary concern of a Promoter Director, carries interest @ 9.00% . The loan is repayable after the expiry of 5 years with an option to be paid fully or in trenches. The interest is payable on yearly basis. The said loan has been introduced as per the loan sanction terms and conditions of Vijaya bank and Bank of India and shall remain in the business during the currency of the loan from both the banks.

Working Capital loan from NBFC (unsecured) taken on 26th February, 2013 for a period of 24 months carrying interest rate of 10.75% p.a. (previous year 10.75% p.a.) flat on Rs.30.000 millions. The same is repayable in 12 monthly installments of Rs.1.822 millions in the first year of the loan and installments of Rs.1.215 millions for the remaining period of the loan. The loan has been sanctioned against collateral of Rs.6,000,000 with the lender along with post-dated cheques for Principal and Interest payable thereon and personal guarantee of three directors.

Short-Term Borrowings

Working capital loan from Bank (Unsecured) outstanding as at the end of the previous year was availed for meeting working capital requirements of the company. The maximum tenor of the loan is 180 days and rollover was permitted after cooling period 3 days. The rate of interest is 12.75% to 13.25% p.a. The interest is payable monthly at the end of each month / at the end of closure of the loan transaction. Bill Discounting from Bank (Unsecured) represents export bills discounted with local banks. The tenor of the loan is in the range of 50 to 120 days and the rate of interest is approximately 10% to 10.70% p.a. (previous year 10% to 10.70% p.a.) Bill Discounting from a NBFC (Unsecured) is availed from finance companies and the tenor of the loan is 90 to 120 days and the rate of interest is 14.25% to 16.75% p.a. (previous year 14.25% p.a.).

Loan from NBFC (unsecured) outstanding as at the end of the previous year taken for 12 months on September 28, 2012 carries interest @ STLR (floating) less 1.75% which is 14.75% p.a. payable on a monthly basis is availed from a finance company. The principal amount is repayable in 3 monthly equal installments starting after 9 months of the availment of loan. The same has been sanctioned against the pledge of unecumbered shares of the company held by a Promoter company to maintain the security cover equal to 2.50 times at all times during the tenure of the loan and irrevocable and unconditional, personal guarantee of two directors and corporate guarantee by the said promoter company.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Contingent liabilities not provided for in respect of:
(a) Guarantees given by the bankers of the company	43.665	48.226
(b) Sales Tax demands disputed in appeals	15.459	0.449
(c) Letter of Credit	0.000	16.105
(d) Gujarat Commercial Tax Penalty	0.000	0.235
(e) Central Sales Tax Liability towards pending declaration forms	29.811	7.594
(f) Disputed Excise Duty Rebate Claim	0.551	0.551
(g) Disputed CENVAT Credit	3.600	3.600
(h) Commitment towards development work for Industrial Park Project	85.000	0.000

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2014

(Rs. in millions)

Particulars	Quarter ended		Half year ended
	30.09.2014	30.06.2014	30.09.2014
	(Unaudited)	(Unaudited)	(Unaudited)
PART I
1. Income from operations
Gross sales/ income from operations	2522.311	2093.166	4615.477
Less: Excise duty	32.528	49.733	82.261
(a) Net sales/ income from operations	2489.783	2043.433	4533.216
(b) Other operating income	23.024	22.300	45.324
Total Income Operations (Net)	2512.807	2065.733	45.78.540
'2. Expenditure
a) Cost of materials consumed	546.045	527.785	1073.830
b) Purchase of stock-in-trade	1821.951	1492.764	3314.715
c) Changes in inventories of finished goods, work-in-process and stock-in-trade	(237.808)	(279.251)	(517.058)
d) Conversion of land into stock-in-trade	5.265	4.575	9.840
e) Employees Benefits Expense	26.345	25.491	51.836
f) Depreciation & Amortization Expense	28.639	28.598	57.237
g) Consumption of stores and spares	41.804	30.780	72.584
h) Other Expenses	82.465	65.312	147.776
Total Expenses	2314.706	1896.054	4210.760
3. Profit/ (Loss) from Operations before Other Income, Financial Costs and Exceptional Items (1-2)	198.101	169.679	367.780
4. Other Income	24.470	16.169	40.639
5. Profit/ (Loss) from Ordinary activities after Financial Costs but before and Exceptional Items (3+4)	222.571	185.848	408.419
6. Finance Costs	93.419	89.034	182.453
7. Profit/ (Loss) from ordinary activities after Financial Costs but before and Exceptional Items (5-6)	129.152	96.814	225.966
8. Exceptional Item	--	--	--
9. Profit/ (Loss) from ordinary activities Before Tax (7+8)	129.152	96.814	225.966
10. Tax Expenses
- Current Tax	45.146	36.000	81.146
- Deferred Tax	(2.576)	(2.334)	(4.910)
- Income tax for earlier year(s)	--	--	--
11. Net Profit/ (Loss) for the Period/ Year (9-10)	86.582	63.148	149.730
12. Extraordinary Items (net of tax expense)	--	--	--
13. Net Profit/ (Loss) for the period (11-12)	86.582	63.148	149.730
14. Paid-up Equity Share Capital (Face Value Rs.10/- each)	175.000	175.000	175.000
15. Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--	--
16. Earnings Per Share (before and after extraordinary items) (In Rs.) (*not annualized)
a) Basic	4.95	3.61	8.56
b) Diluted	4.95	3.61	8.56
PART II
A. PARTICULARS OF SHAREHOLDING
1. Public Shareholding
- Number of Equity Shares	5773015	5773015	5773015
- Percentage of Shareholding	32.99	32.99	32.99
2. Promoter and Promoter Group’s shareholding pledged
a) Pledged/ Encumbered
- Number of Shares	1826593	1460093	1826593
- Percentage of pledged shares on shareholding of Promoter / Promoter Group	15.58	12.45	15.58
- Percentage of pledged on Total Share Capital of the Company	10.44	8.34	10.44
b) Non - Encumbered
- Number of Shares	9900431	10266931	9900431
- Percentage of shares (as a % of the total shareholding of Promoter / Promoter Group)	84.42	87.55	84.42
- Percentage of shares (as a % of the total Share Capital of the Company)	56.57	58.67	56.57

Particulars	Quarter ended 30.09.2014
B. INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

STATEMENT OF STANDALONE ASSETS AND LIABILITIES

(Rs. in millions)

SOURCES OF FUNDS	30.09.2014 (Unaudited)
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	175.000
(b) Reserves & Surplus	1764.173
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	1939.173
(3) Non-Current Liabilities
(a) Long-term borrowings	356.769
(b) Deferred tax liabilities (Net)	64.385
(c) Other long term liabilities	0.000
(d) Long-term provisions	4.074
Total Non-current Liabilities (3)	425.228
(4) Current Liabilities
(a) Short term borrowings	2130.101
(b) Trade payables	2817.735
(c) Other current liabilities	314.905
(d) Short-term provisions	144.382
Total Current Liabilities (4)	5407.123
TOTAL	7771.524
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	784.718
(b) Non-current Investments	4.035
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	109.323
(e) Other Non-current assets	5.881
Total Non-Current Assets	903.957
(2) Current assets
(a) Current investments	0.000
(b) Inventories	2662.001
(c) Trade receivables	3276.113
(d) Cash and cash equivalents	89.616
(e) Short-term loans and advances	769.522
(f) Other current assets	70.315
Total Current Assets	6867.567
TOTAL	7771.524

Notes:

1. The above financial results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 11th November, 2014. The above result have been reviewed by the Statutory Auditors of the Company.

2. The Company's operations predominantly relate to 'Stainless Steel Tubes and Pipes' and the revenue / profit from Real Estate segment is insignificant hence there is no separate reportable segment as per Accounting Standard 17 "Segment Reporting" as notified under the Companies Accounting Standards Rules, 2006.

3. Other expenses, includes foreign currency exchange loss of Rs.9.272 millions, Rs.21.242 millions, Rs.8.911 millions, Rs.55.104 millions and Rs.29.072 millions for the quarter ended 30th September, 2014, 30th September, 2013, half year ended 30th September, 2014, 30th September, 2013 and year ended 31st March, 2014 respectively and Other income includes foreign currency exchange gain of Rs.3.61 lacs for the quarter ended 30th June, 2014.

4. Pursuant to the guidelines under schedule II of the Companies Act, 2013, the carrying amount of the fixed assets as on 1st April, 2014 has been depreciated over the remaining revised useful life of the fixed assets. As a result, the depreciation charge for the quarter and half year ended 30th September, 2014 is higher by Rs.5.991 millions and Rs.12.208 millions respectively and profit before tax for the quarter and half year ended 30th September, 2014 is lower to the said extent. Further, based on the transitional provision provided in note 7(b) of the Schedule II, fixed assets whose useful life has already been completed as on 1st April, 2014, the carrying value of those fixed assets amounting to Rs.9.070 millions and the corresponding deferred tax thereon amounting to Rs.30.83 lacs have been debited and credited respectively to the opening balance of 'Retained Earnings'.

5. The figures for the previous period / year have been re-arranged / re-grouped, wherever necessary to conform to current period's presentation.

FIXED ASSETS:

Tangible Assets

· Factory Land

· Factory Building

· Office Building

· Plant and Machinery

· Electrical and Telephone

· Installation and Office Equipment

· Computers

· Furniture and Fixtures

· Vehicles

· Live Stock

Intangible Assets

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report : No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.61
UK Pound	1	Rs.93.49
Euro	1	Rs.71.38

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
-- PROFITABILITY	1~10	5
--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	NO
--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		48

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.