MIRA INFORM REPORT

Report No. :	329111
Report Date :	25.06.2015

IDENTIFICATION DETAILS

Name :	AIA ENGINEERING LIMITED
Registered Office :	115, GVMM Estate, Odhav Road, Odhav, Ahmedabad - 382410, Gujarat
Tel. No.:	91-79-22901078
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	11.03.1991
Com. Reg. No.:	04-015182
Capital Investment / Paid-up Capital :	Rs.188.641 Million
CIN No.: [Company Identification No.]	L29259GJ1991PLC015182
IEC No.:	0888003986
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCA2777J
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is manufactures and markets a wide range of High Chromium consumable wear parts (mill internals) which are used in the process of Crushing/Grinding in the Cement, Mining, Thermal Power and Aggregate Industries
No. of Employees :	1200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	AIA, incorporated on 11^th March 1991, it is well-established company having have fine track record. The company manufactures grinding media, liners, and diaphragm which are used for crushing and grinding operations in grinding mills in the cement, power utility. Ratings strengths on AIA’s dominant position in the mill parts and components market in India, its well diversified revenue profile, and its robust financial risk profile, marked by a conservative capital structure and healthy liquidity. Rating further take into consideration on AIA’s significantly higher-than-expected revenue growth, while maintaining its healthy profitability and strong capital structure. Theses rating strength are partially offset by AIA’s operating margin is susceptible to volatility in the prices of raw materials, particularly steel scrap and ferrochrome. Trade relations are reported to be trustworthy. Payments are reported to be regular and as per commitment. In view of strong financial base backed by its dominant position in the market, the company can be considered good 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA+ [Long Term]
Rating Explanation	High degree of safety and very low credit risk.
Date	January 2015

Rating Agency Name	CRISIL
Rating	A1+ [Short Term]
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	January 2015

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 31-03-2013.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Nimisha
Designation :	Operator
Contact No.:	91-79-66047800
Date :	24.05.2015

LOCATIONS

Registered Office :	115, GVMM Estate, Odhav Road, Odhav, Ahmedabad - 382410, Gujarat, India
Tel. No.:	91-79-22901078
Fax No.:	91-79-22901077
E-Mail :	vivekrathore@aiaengineering.com info@aiaengineering.com
Website :	www.aiaengineering.com
Location :	Owned
Corporate Office :	11-12, Sigma Corporate, Sindhu Bhavan Road, Ahmedabad – 380054, Gujarat, India
Tel. No.:	91-79-66047800
Factory 1 :	235-236, and other Plants at GVMM Estate, Odhav Road, Odhav, Ahmedabad-382410, Gujarat, India
Factory 2 :	129/129-A, GVMM Estate, Odhav Road, (Erstwhile Reclamation Welding Limited), Ahmedabad-382410, Gujarat, India
Factory 3 :	Plot No. 70-77, Survey No. 423/P, 426/P and 427/P, Mahagujarat Industrial Estate, Sarkhej-Bavla N.H. 8-A, Village Molaiya, Post Changodal, Taluka Sanand, Ahmedabad-382213, Gujarat, India
Factory 4 :	18/P, 20^th Mile Stone, Sarkhej-Bavla N.H. 8-A, Village Molaiya, Post Changodal, Taluka Sanand, Ahmedabad-382213, Gujarat, India
Factory 5 :	Plot No. 14, (Survey No. 67, 67A and 70), Girnar Scooter Compound, Odhav, Ahmedabad-382410, Gujarat, Indai
Factory 6 :	L-3, MIDC Industrial Area (Erstwhile Paramount Centrispun Castings Private Limited), Hingna Nagar, Nagpur-440016, Maharashtra, India
Branch Office :	Located At: · Mumbai · Ahmedabad

DIRECTORS

As on 31.03.2014

Name :	Mr. Rajendra S. Shah
Designation :	Chairman : Independent - Non-Executive
Name :	Mr. Bhadresh K. Shah
Designation :	Managing Director : Executive - Promoter
Name :	Mr. Vinod Narain
Designation :	Independent Director
Name :	Mr. Sanjay S. Majmudar
Designation :	Independent Director
Date of Birth / Age :	20.03.1963
Qualifications :	B.Com, FCA and ACS
Date of Appointment :	07.05.2007
Name :	Dr. S. Srikumar
Designation :	Non Independent - Non-Executive Director
Name :	Mr. Yashwant M. Patel
Designation :	Whole-time Director
Date of Birth / Age :	05.10.1943
Qualifications :	B. Sc. (Chemistry)
Date of Appointment :	12.11.2010
Name :	Mr. Dileep C. Choksi
Designation :	Additional Director (w.e.f 27.01.2014)
Name :	Mr. Kunal D. Shan
Designation :	Executive Director (Finance)

KEY EXECUTIVES

Name :	Mr. S. N. Jetheliya
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	58148920	61.65
Sub Total	58148920	61.65
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	58148920	61.65
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6051784	6.42
Financial Institutions / Banks	2463	0.00
Foreign Institutional Investors	22871387	24.25
Any Others (Specify)	0	0.00
Sub Total	28925634	30.67
(2) Non-Institutions
Bodies Corporate	2308662	2.45
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2252685	2.39
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	693567	0.74
Any Others (Specify)	1987772	2.11
Clearing Members	44450	0.05
NRIs/OCBs	145150	0.15
Foreign Port Folio Investor Corporate	1798172	1.91
Sub Total	7242686	7.68
Total Public shareholding (B)	36168320	38.35
Total (A)+(B)	94317240	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	94317240	100.00

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

Sl. No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Bhadresh K Shah	5,81,28,900	61.63
2	Khusali B Shah	10,010	0.01
3	Bhumika B Shah	10,005	0.01
4	Gita B Shah	5	0.00
	Total	5,81,48,920	61.65

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	HDFC Trustee Company Ltd HDFC Prud Fund	2985275	3.17
2	HSBC Bank (Mauritius Ltd A/c Jwalamukhi Investment Holding	2670000	2.83
3	Pinebridge Investments Asia Ltd Pinebridge Investments GF Mauritius Ltd	1261020	1.34
4	Mathews India Fund	2648467	2.81
5	Franklin Templeton Investment Fund	1125747	1.19
6	Nalanda India Equity Fund Ltd	7918845	8.40
	Total	18609354	19.73

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 held	Shares as % of Total No. of Shares
1	Nalanda India Equity Fund Ltd	7918845	8.40
	Total	7918845	8.40

BUSINESS DETAILS

Line of Business :	Subject is manufactures and markets a wide range of High Chromium consumable wear parts (mill internals) which are used in the process of Crushing/Grinding in the Cement, Mining, Thermal Power and Aggregate Industries
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	High Chromium Consumable Wear Parts (Mill Internals)
Countries :	· Canada · UK · Australia · USA · Asian Country · Gulf Country
Imports :
Countries :	· USA · China · Malaysia
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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

End Users

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

No. of Employees :

1200 (Approximately)

Bankers :

· Citi Bank N.A., 1st Floor, Kalapurnam, Near Municipal Market, C.G. Road, Ahmedabad - 380009, Gujarat, India

· HSBC Bank Limited, Maradia Plaza, Upper Level, C.G. Road, Ahmedabad -380009, Gujarat, India

Bank Name	State Bank of India
Branch	G.V.M.S.A.V. Limited Branch, Odhav Road, Odhav, Ahmedabad - 382410, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	10198485813
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
From banks
External Commercial Borrowing	NA	823.653
Foreign Currency Loan Buyer Credit	NA	34.291
Total	NA	857.944

Banking Relations :	--
Auditors :
Name :	Talati and Talati Chartered Accountants
Address :	Ambica Chambers, Near Old High Court, Navrangpura, Ahmedabad-380009, Gujarat, India
Memberships :	--
Collaborators :	--
Subsidiaries : (As on 31.03.2014)	· Welcast Steels Limited, Bangalore · Vega Industries (Middle East) FZE, U.A.E. · Vega Industries Limited, U.K. · Vega Industries Limited, U.S.A. · Vega Steel Industries (RSA) PTY Limited, South Africa · Wuxi Weigejia Trade Company Limited, China
Other Related Parties: (As on 31.03.2014)	· AB Tradelink Limited · Powertec Engineering Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 188.641 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
230000000	Equity Shares	Rs.2/- each	Rs. 460.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
94320370	Equity Shares	Rs.2/- each	Rs 188.641 Million

The reconciliation of the number of shares outstanding as at 31st March, 2014 and 31st March, 2013 is set out below

Particulars	As at 31st March, 2014
Equity Shares	No of shares	Rs. In Million
Shares outstanding at the beginning of the year	94,320,370	188.641
Add: Shares issued during the year	--	--
Shares outstanding at the end of the year	94,320,370	188.641

Rights, preferences and restrictions attached to Equity Shares:

The Company has one class of Equity Shares having a par value of Rs. 2 each. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

During the year ended 31st March, 2014, the amount of Dividend proposed by the Board of Directors of the Company to the Equity Shareholders is Rs. 6 per Share (Previous Year Rs. 4 per Share).

The details of Shareholders holding more than 5% shares are set out below:

Particulars	As at As at 31st March, 2014
Name of the Shareholders	No of Shares	% of holding
Bhadresh K. Shah	39,626,875	42.01%
Bhadresh K. Shah Karta of Bhadresh K. Shah H.U.F.	18,502,025	19.62%
Nalanda India Equity Fund Limited.-	7,918,845	8.40%
HDFC Trustee Company Limited.- HDFC Prudent Fund	2,112,958	2.24%

Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash:

336,430 Equity Shares (Previous Year 336,430) of Rs. 2 each fully paid-up have been issued to the Shareholders of the Amalgamating Company i.e. Reclamation Welding Limited. pursuant to the Scheme of Amalgamation with the Company during the Financial Year 2009-10.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	188.641	188.641	188.641
(b) Reserves & Surplus	16327.836	12931.888	10648.545
(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)	16516.477	13120.529	10837.186
(3) Non-Current Liabilities
(a) Long-term borrowings	550.739	867.176	1054.445
(b) Deferred tax liabilities (Net)	258.860	214.371	196.646
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	57.471	37.508	36.514
Total Non-current Liabilities (3)	867.070	1119.055	1287.605
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	414.332
(b) Trade payables	1128.698	1196.838	859.021
(c) Other current liabilities	664.142	446.047	214.791
(d) Short-term provisions	1051.256	1025.312	682.228
Total Current Liabilities (4)	2844.096	2668.197	2170.372
TOTAL	20227.643	16907.781	14295.163
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5769.170	3581.513	3368.789
(ii) Intangible Assets	0.000	86.217	24.000
(iii) Capital work-in-progress	0.000	997.619	314.472
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	149.053	149.103	154.600
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	330.919	149.629	97.609
(e) Other Non-current assets	42.405	9.827	9.159
Total Non-Current Assets	6291.547	4973.908	3968.629
(2) Current assets
(a) Current investments	6007.486	5013.496	1765.788
(b) Inventories	2264.325	2194.025	2096.429
(c) Trade receivables	2263.822	2213.613	2335.231
(d) Cash and cash equivalents	1238.921	829.876	2085.801
(e) Short-term loans and advances	2160.381	1680.391	2035.224
(f) Other current assets	1.161	2.472	8.061
Total Current Assets	13936.096	11933.873	10326.534
TOTAL	20227.643	16907.781	14295.163

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	20940.279	17830.105	15860.366
		Other Income	1373.241	325.687	193.306
		TOTAL (A)	22313.520	18155.792	16053.672
Less	EXPENSES
		Cost of Materials Consumed	7315.975	5785.376	5139.524
		Purchases of Stock-in-Trade	2030.110	2112.334	2312.811
		Employee Benefits Expense	-27.467	567.070	518.722
		Other Expenses	662.135	4878.656	5237.363
		Changes in Inventories of Finished goods, Work-in-process and Stock-in-Trade	5870.198	(77.290)	47.345
		Exceptional Items	0.000	311.100	0.000
		TOTAL (B)	15850.951	13577.246	13255.765
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6462.569	4578.546	2797.907
Less	FINANCIAL EXPENSES (D)		33.988	57.407	32.193
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6428.581	4521.139	2765.714
Less/ Add	DEPRECIATION/ AMORTISATION (F)		676.145	362.948	306.932
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		5752.436	4158.191	2458.782
Less	TAX (H)		1606.717	1307.798	767.747
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4145.719	2850.393	1691.035
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	5782.000
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	285.100	169.110
		Proposed Dividend	NA	565.922	377.281
		Tax on Dividend	NA	95.773	63.823
	BALANCE CARRIED TO THE B/S		NA	8766.419	6862.821
	EARNINGS IN FOREIGN CURRENCY		NA	12297.036	10339.424
	IMPORTS
		Raw Materials	NA	5785.377	5139.524
		Components and Stores parts	NA	1675.790	1859.475
	TOTAL IMPORTS		NA	7461.167	6998.999
	Earnings / (Loss) Per Share (Rs.)		43.95	30.22	17.93

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	306.485	21.597
Cash generated from operations	NA	5228.129	2314.447

QUARTERLY RESULTS

PARTICULARS	1^st Quarter Sep 2014	2^nd Quarter DEC 2014	3^rd Quarter MAR 2015
Net Sales	4965.250	5315.160	6059.580
Total Expenditure	3982.970	4006.940	4180.850
PBIDT (Excl OI)	981.280	1308.220	1950.730
Other Income	745.630	199.810	217.880
Operating Profit	1726.910	1508.030	2168.610
Interest	9.910	7.900	14.160
Exceptional Items	-	-	-
PBDT	1717.00	1500.130	2154.450
Depreciation	209.650	176.420	174.420
Profit Before Tax	1507.350	1323.710	1980.030
Tax	361.670	405.630	425.110
Provisions and contingencies	-	-	-
Profit After Tax	1145.680	918.080	1554.920
Extraordinary Items	-	-	-
Prior Period Expenses	-	-	-
Other Adjustments	-	-	-
Net Profit	1145.680	918.080	1554.920

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	19.80	15.99	10.66
Operating Profit Margin (PBIDT/Sales)	(%)	30.86	25.68	17.64
Return on Total Assets (PBT/Total Assets}	(%)	28.65	26.38	17.78
Return on Investment (ROI) (PBT/Networth)		0.35	0.32	0.23
Debt Equity Ratio (Total Debt /Networth)		0.03	0.09	0.14
Current Ratio (Current Asset/Current Liability)		4.90	4.47	4.76

STOCK PRICES

Face Value	Rs.2.00
Market Value	Rs.993

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	188.641	188.641	188.641
Reserves & Surplus	10648.545	12931.888	16327.836
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	10837.186	13120.529	16516.477
long-term borrowings	1054.445	867.176	550.739
Short term borrowings	414.332	0.000	0.000
Total borrowings	1468.777	867.176	550.739
Debt/Equity ratio	0.136	0.066	0.033

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	15860.366	17830.105	20940.279
		12.419	17.443

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	15860.366	17830.105	20940.279
Profit	1691.035	2850.393	4145.719
	10.66%	15.99%	19.80%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS:

HIGH COURT OF GUJARAT

SPECIAL CIVIL APPLICATION No. 6939 of 2010

STATUS: PENDING ( Converted from : : ST/3873/2010) CCIN No : 001021201006939

NEXT LISTING DATE: 25/06/2015

Coram HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI

--

S.NO.

Name of the Petitioner

Advocate On Record

1

BALAJI INDUSTRIES PRODUCTS LTD

MR YJ TRIVEDI for: Petitioner(s)  1

S.NO.

Name of the Respondant

Advocate On Record

1
2
3

AIA ENGINEERING PVT LTD
BHARAT DAND
J K FOUNDRY ENGINEERING

RULE SERVED for :Respondent(s)  1 - 2
SERVED BY AFFIX.-(R) for :Respondent(s)  3
MR RASESH H PARIKH for :Respondent(s)  1

Presented On: 25/03/2010 Registered On: 25/03/2010

Bench Category: SINGLE BENCH District: AHMEDABAD

Case Originated From: THROUGH ADVOCATE Listed: 19 times

Stage Name: FOR FINAL HEARING AT 4:00 P.M.

Act: CIVIL PROCEDURE CODE, 1908

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
Deferred payment liabilities	NA	9.232
Total	NA	9.232

OPERATIONAL REVIEW: (As on 31.03.2014)

The Revenue from Operations of the Company has gone up to Rs. 17830.105 Million as compared to Rs. 15860.366 Million in the previous Financial Year. Exports Turnover has also gone up to Rs. 12297.036 Million as compared to Rs.103,39.424 Million in the previous Financial Year.

The Company has registered a Profit Before Tax (PBT) of Rs. 41,58.191 Million and Profit After Tax (PAT) of Rs. 28,5393 Million as compared to PBT of Rs. 24,50.382 Million and PAT of Rs. 16,91.035 Million respectively in the previous Financial year.

INDUSTRY OVERVIEW: (As on 31.03.2014)

The Company manufactures and markets a wide range of High Chromium consumable wear parts (mill internals) which are used in the process of Crushing/Grinding in the Cement, Mining, Thermal Power and Aggregate Industries. These are core industries from an economic stand-point and are the basic drivers of infrastructural development.

The Company employs alloy-casting process for manufacture of the products, which require designing of alloys in relation to end application. The casting process is followed by precision heat treatment to develop required end properties. Therefore, Company can generally be classified as a foundry. The industry produces a specific range of high chrome mill internals which are used as wear parts in the Crushing/Grinding operations in the mills/plants of Cement, Mining, Utility and Aggregate Industries and therefore the market prospects are linked with the requirement of these industries.

The Company has a global footprint with sales and service support in more than 95 countries. Segmentally, the global cement industry has been undergoing structural issues and virtually all new capacity addition has come to a halt except for a few select countries. Also, capacity utilization in developed countries continues to remain flat. Even in India, the Cement industry, having grown its capacity to 300 million tonnes per annum, seems to have entered a phase of consolidation with new capacity additions having slowed down. As for the mining business, as many reports suggest, it seems an era of super-cycle for commodities has come to an end. Capacity addition plans for many companies are being put on hold. But Company’s prospects are more closely linked to the capacity utilization of the mines and the subsequent wear part replacement which seems to be holding up well till now. The Company will continue to monitor this very closely.

In India, in addition to the above two industries, Company is also servicing the replacement and new capex requirements of coal fired thermal power plants and is thus directly catering to the power sector. India is projected to continue to be power deficit for the foreseeable future and hence a sustained growth in this particular segment in India is predictable.

OUTLOOK AND PROSPECTS: (As on 31.03.2014)

The annual replacement market of High Chrome mill internals for cement globally is estimated at around 0.300 million tons. The overall position of the cement industry in the key global markets continued to remain sluggish for a major part of FY 2013-14. There is expectation that to stimulate growth in the developed countries their governments will have to resort to infrastructure spending which will trigger positive improvements in capacity utilizations at Cement plants. Company will be a beneficiary as and when the same is witnessed. In addition, there are certain specific markets in Asia, Africa and South America that continue to add capacity and/or have increased capacity utilization. In China, the Company currently has a limited presence in form of a particular variety of products. China continues to remain a major market and the Company will continue to invest resources and strategy for a bigger market share. In India while new capacities were created the pace has distinctively slowed down. Nevertheless India’s cement production has increased by around 8 to 10% in FY 2013-14 and on a matching basis TheCompany has maintained a similar growth in the cement replacement market in India.

In the mining industry the Company is predominantly focused on four major metal ore types viz. Iron, Platinum, Gold and Copper with emphasis on the replacement market. The growth prospects are primarily emanating out of the large annual replacement market in this industry. The addressable market opportunity relating to wear parts are estimated in the range of 1.5 to 2.0 million tons per annum out of this less than 20% requirement is converted into high chrome which implies the opportunity of conversion of the balance requirements into high chrome products. While the Company started its foray into mining space with concentration on grinding media, the Company has now successfully developed mining liners also. Even within grinding media, the Company has developed certain specialized applications. Now the Company is positioned as perhaps the only Company in the world offering the complete range of Mining High- Chrome consumables including grinding media products as well as mining liners made out of chrome alloys. This positioning is unique to the Company and augurs well for the consistent and steady growth in this industry over medium to long term. Again, since the Company is focused on the above four major ores some cyclical fluctuations in any of the above products does not impact significantly the Company’s growth prospects. Company has steadily increased its market presence in the major mining groups across the Globe with particularly strong focus on major mining centers like Australia, Africa, North America etc. The focus of the Company in mining industry is predominantly outside India.

In as much as the thermal power plants are concerned the Company continues to enjoy a niche position in this particular segment in India. The Company will strive to maintain a steady growth rate in this particular segment matching with the rate at which the sector grows.

INDEX OF CHARGES:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10502105	19/05/2014	300,000,000.00	CITI BANK N.A.	1ST FLOOR, KALAPURNAM COMPLEX, NR. MUNICIPAL MARKET, C. G. ROAD, NAVRANGPURA,, AHMEDABAD, GUJARAT  - 380009, INDIA	C06178750
2	10425511	14/05/2013	420,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI  TED	52/60,, MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B75061259
3	10392966	13/12/2012	1,028,500,000.00	CITIBANK N.A	1ST FLOOR, KALAPURNAM, NEAR MUNICIPAL MARKET, CG  ROAD, AHMEDABAD, GUJARAT - 380009, INDIA	B64512841
4	90107020	25/08/2009 *	3,630,000,000.00	STATE BANK OF INDIA	MID CORPORATE LOAN ADMINISTRATION UNIT, 4TH FLOOR, BHADRA, AHMEDABAD, GUJARAT - 380001, INDIA	A69602712
5	90104117	31/03/2010 *	3,630,000,000.00	STATE BANK OF INDIA	MID CORPORATE LOAN ADMINISTRATION UNIT, 4TH FLOOR, BHADRA, AHMEDABAD, GUJARAT - 380001, INDIA	A83081745

*Date of charge modification

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Million)
1. Contingent Liabilities :
a. Claims against the Company not acknowledged as debts
i) Central Excise & Service Tax	369.849
ii) Income Tax	497.725
iii) Sales Tax / Central Sales Tax	1.977
iv) Award of Damages in Patent matter by District Court of Nashville, Tennessee, U.S.A., which is disputed by the Company (US$ 7228544.64)	-
Others	62.832
b. Guarantees
i) Bank Guarantees Outstanding	692.140
ii) Corporate Guarantees Outstanding to Customers	556.694
iii) Guarantees given by the Company on behalf of Subsidiaries	349.051
iv) Corporate Guarantees given by the Company on behalf of Subsidiaries	203.305
v) Letter of Credit (L/C)	76.558

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipments

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.63.66
UK Pound	1	Rs.100.50
Euro	1	Rs.71.31

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	KSH
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		67

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.