MIRA INFORM REPORT

Report No. :	329940
Report Date :	29.06.2015

IDENTIFICATION DETAILS

Name :	BLUE STAR LIMITED
Formerly Known As :	BLUE STAR ENGINEERING COMPANY (BOMBAY) PRIVATE LIMITED
Registered Office :	Kasturi Building, Jamshedji Tata Road, Mumbai – 400020, Maharashtra
Tel no. :	91-22-66654000
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	20.01.1949
Com. Reg. No.:	11-006870
Capital Investment / Paid-up Capital :	Rs. 179.900 Million
CIN No.: [Company Identification No.]	L28920MH1949PLC006870
IEC No.:	0388021454
TAN No.: [Tax Deduction & Collection Account No.]	MUMB11714D
PAN No.: [Permanent Account No.]	AAACB4487D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is into the business of central air conditioning and commercial refrigeration and also into distribution and maintenance of imported professional electronics and industrial systems.
No. of Employees :	2540 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an old and established company incorporated during the year 1949 having an excellent track record. Financial position of the company is sound. Fundamentals of the company are strong and healthy. The rating also takes into consideration company proven track record and dominant market position in the central air-conditioning and cooling products business. Directors are reported to be well experienced and knowledge businessmen. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitment. In view of long track record and established market position, the company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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: “AA+”
Rating Explanation	High degree of safety and very low credit risk.
Date	04.11.2014

Rating Agency Name	CARE
Rating	Short term bank facilities: “A1+”
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	04.11.2014

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 31-03-2013.

INFORMATION DENIED

Management non-cooperative (91-22-67924000)

LOCATIONS

Registered / Head / Corporate Office :	Kasturi Building, Jamshedji Tata Road, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-66654000
Mobile No.:	91-9820045298 (Mr. S. S. Basisth)
Fax No.:	91-22-66654151
E-Mail :	sanjeev_sehgal@vsnl.com info@bluestarindia.com kptkutty@bluestarindia.com sangameshwar@bluestarindia.com phalgunankumran@bluestar.com
Website :	http://www.bluestarindia.com
Factory 1 :	2^nd Pokhran Road, Majiwada, Thane – 400601, Maharashtra, India
Tel. No.:	91-22-25346265
Fax No.:	91-22-25345525
Factory 2 :	Plot Nos. 4 and 5, GIDC Industrial Estate, Narmada Nagar Post, Bharuch - 392 015, Gujarat, India
Tel. No.:	91-2642-246116
Fax No.:	91-2642-246026
Factory 3 :	Nahan Road, Rampur Jattan Kala Amb, District Sirmour, Himachal Pradesh 173030, India
Tel. No.:	91-1702-238760
Fax No.:	91-1702-238461
Factory 4 :	Nahar Road, Village Ogli, Kala Amb, District Sirmour – 173030, Himachal Pradesh, India
Fax No.:	91-1702-238761s
Factory 5 :	Village Vasuri Khurd Khanivali Road Po: Khupari Taluka: Wada Dist: Thane – 421312, Maharashtra, India
Factory 6:	Survey No. 265/2, Demni Road, U. T. of Dadra and Nagar Haveli – 396193, India
Tel. No.:	91-260-2668617/ 2668618
Fax No.:	91-260-2668503
Factory 7:	501/3, 503/2, Tejpur Road, Sarkhej Baula Highway, Changodar, Ahmedabad - 382 213, Gujarat, India
Tel No.:	91-2717-294490s
Branch Office :	Anjuman Kayaar Towers, No 28, Ward 27, Mission Road - 560027, Bangalore, India
Divisional Offices :	Chennai 9 Bazullah Road,T Nagar,Chennai – 600017, Tamilnadu, India Tel: 91-44-4344 4000 Fax: 91-44-28158015/ 43444072 Mumbai Bandbox House, 4^th Floor, 254 D, Dr Annie Besant Road, Worli, Mumbai – 400030, Maharashtra, India Tel: 91-22-66544000 Fax: 91-22-66544001
Regional Offices:	Ø Blue Star House, 9A, Ghatkopar Link Road, Sakinaka, Mumbai – 400072, Maharashtra, India Tel. No.: 91-22-66684000 Fax No.: 91-22-66684004 Ø Block 2-A, DLF Corporate Park, DLF Qutab Enclave, Phase III, Gurgaon - 122002, Haryana, India Tel. No.: 91-124-4094000 Fax No.: 91-124-4094004 Ø 7, Hare Street, Kolkata - 700 001, West Bengal, India Tel. No.: 91-33-22134000 Fax No.: 91-33-22134102 Ø No.104, Old No. 46, Garuda Buildings, Cathedral Road, Chennai – 600086, Tamilnadu, India Tel. No.: 91-44-42444000 Fax No.: 91-44-42444190
Sales and Services Offices:	Located at · Ahmedabad · Bengaluru · Bhubaneswar · Chandigarh · Ghaziabad · Chennai · Goa · Guwahati · Indore · Jaipur · Jamshedpur · Kochi · Lucknow · Ludhiana · Mumbai · Nagpur · New Delhi · Patna · Pune · Raipur · Secunderabad · Thane · Thiruvananthapuram · Vadodara · Visakhapatnam
Overseas Office :	Located at · Malaysia · U.A.E. · U.S.A.

DIRECTORS

As on 31.03.2014

Name :	Mr. Ashok Mohan Advani
Designation :	Chairman
Address :	105, Samudra Mahal, Dr. Annie Besant Road, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	17.11.1941
Qualification :	B. Sc., SB, MBA
Date of Appointment :	01.08.1979
DIN No.:	00001372
Name :	Mr. Suneel M. Advani
Designation :	Vice Chairman
Address :	232, Urvashi, 23rd Floor, Petit Hall Complex, Nepeansea Road, Mumbai -400006, Maharashtra, India
Date of Birth/Age :	23.02.1944
Qualification :	SB, SB, LL.B.,
Date of Appointment :	03.03.1983
DIN No.:	00001709
Name :	Mr. Satish Jamdar
Designation :	Managing Director
Qualification :	Mechanical Engineering graduate from IIT Bombay with additional qualifications in Systems Management from NIIT, and Management Studies from UK and USA
Name :	Mr. Vir S Advani
Designation :	Executive Director and President - Electro Mechanical Projects Business
Address :	232, Urvshi, Patit Hall Complex, Napeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	20.08.1975
Qualification :	BS degree in Systems Engineering and a BA degree in Economics from the University of Pennsylvania. He has also completed a comprehensive Executive Management Programme on Leadership Development at Harvard Business School.
Date of Appointment :	01.07.2010
DIN No.:	01571278
Name :	B Thiagarajan
Designation :	Executive Director and President - AC&R Products Business
Qualification :	Bachelor of Engineering in Electrical and Electronics from Madurai University. He has also completed the Senior Executive Program of London Business School.
Name :	Mr. Shailesh Haribhakti
Designation :	Director
Address :	228, Kalpataru Habitat, B Wing, Dr. S S Rao Road, Parel, Mumbai – 400012, Maharashtra, India
Date of Birth/Age :	12.03.1956
Qualification :	Chartered and Cost Accountant, and a Certified Internal Auditor, Financial Planner and Fraud Examiner.
Date of Appointment :	31.10.2005
DIN No.:	00007347
Name :	Ms. Shobana Kamineni
Designation :	Director
Date of Appointment :	30.05.2014
Qualification :	Bachelors Degree in Economics and has an Accelerated Diploma in Hospital Administration from Columbia University, New York.
Name :	Mr. Pradeep Mallick
Designation :	Director
Address :	A/2, Pallonji House, 43 Cuffe Parde, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	20.11.1942
Qualification :	B Tech from IIT Madras and Diploma holder in Business Management from UK. He is also a Chartered Engineer.
Date of Appointment :	29.01.2003
DIN No.:	00061256
Name :	Mr. M K Sharma
Designation :	Director
Qualification :	Bachelors Degrees in Arts and Law, and Post Graduate Diplomas in Personnel Management and Labour Laws.
Name :	Mr. Gurdeep Singh
Designation :	Director
Address :	178, Vasant Vihar, Vasant Marg, New Delhi – 100057, India
Date of Birth/Age :	23.07.1944
Qualification :	Chemical Engineering Graduate from IIT Delhi.
Date of Appointment :	23.05.2003
DIN No.:	00036922

KEY EXECUTIVES

Name :	Mr. Sangameshwar Iyer
Designation :	Company Secretary
Name :	Yogita
Designation :	Account Officer
Name :	Mr. J M Bhambure
Designation :	Executive Vice President – R and D and Technology
Name :	Mr. Tojo Jose
Designation :	Executive Vice President - Human Resources
Name :	Mr. Manek Kalyaniwala
Designation :	Executive Vice President - Finance
Name :	Mr. C P Mukundan Menon
Designation :	Executive Vice President – Unitary Cooling Products
Name :	Mr. G Anandkumar
Designation :	Vice President - Plumbing Projects Division
Name :	Mr. R Aravindan
Designation :	Vice President - Airconditioning Projects Division, Southern Region
Name :	Mr. Sujan Chatterjee
Designation :	Vice President - Corporate Financial Services
Name :	Mr. R G Devnani
Designation :	Vice President - Thane, Wada, Dadra and Bharuch Plants
Name :	Mr. Anirudha Keskar
Designation :	Vice President - Procurement and Supply Chain
Name :	Mr. V V Lanka
Designation :	Vice President – Electrical Project Division
Name :	Mr. D H Roy
Designation :	Vice President - Himachal Plants
Name :	Mr. Rajendra Verma
Designation :	Vice President And Joint Head Of Operations – Electro Mechanical Project Group

SHAREHOLDING PATTERN

As on 31.03.2015

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	21468354	23.87
Bodies Corporate	21731	0.02
Any Others (Specify)	13458337	14.96
Trusts	13458337	14.96
Sub Total	34948422	38.86
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	543075	0.60
Sub Total	543075	0.60
Total shareholding of Promoter and Promoter Group (A)	35491497	39.46
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	16404084	18.24
Financial Institutions / Banks	24660	0.04
Insurance Companies	932559	1.04
Foreign Institutional Investors	5870326	6.53
Any Others (Specify)	377074	0.42
Foreign Mutual Fund	377074	0.42
Sub Total	23608703	26.26
(2) Non-Institutions
Bodies Corporate	3301995	3.73
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	14945092	19.81
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	8380733	9.55
Any Others (Specify)	1058414	1.18
Clearing Members	22516	0.03
Foreign Corporate Bodies	0	0.00
Market Maker	5033	0.01
Non Resident Indians	684245	0.77
Trusts	300	0.00
Foreign Portfolio Investors	346320	0.39
Sub Total	27686234	34.27
Total Public shareholding (B)	51294937	60.54
Total (A)+(B)	86786434	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)	86786434	100.00

BUSINESS DETAILS

Line of Business :	Subject is into the business of central air conditioning and commercial refrigeration and also into distribution and maintenance of imported professional electronics and industrial systems.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

No. of Employees :

2540 (Approximately)

Bankers :

· The Hongkong and Shanghai Banking Corporation Limited

· State Bank of India

· Oriental Bank of Commerce

· The Royal Bank of Scotland

· BNP Paribas

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
On cash credit, packing credit and working capital demand loan accounts from banks	NA	360.315
Buyers credit	NA	854.840
Total	NA	1215.155

NOTE:

a. Outstanding Loans carry an average interest rate of 10.12 % (31 March 2013: 10.23%).

b. Outstanding Loans is secured by hypothecation of stock-in-trade and trade receivables.

c. Buyers’ Credit are availed for imports payables and are repayable within maximum tenure of 360 days from the date of shipment and carried an average interest @ Libor plus 1.15%.

d. Commercial Papers carry average interest rate @ 9.62 % p.a. for the current year (31 March 2013: 8.97 % p.a.). These are repayable within 50 days to 90 days from the date of drawdown.

Auditors :
Name :	S R Batliboi and Associates LLP Chartered Accountants
Address :	14^th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India
Tel. No. :	91-22-61920000
Fax No. :	91-22-61921000
Memberships :	Not Available
Collaborators :	Not Available
Subsidiaries (As on 31.03.2014) :	· Blue Star Electro Mechanical Limited · Blue Star Design and Engineering Limited ( w.e.f : 1.04.12 )
Associate (As on 31.03.2014) :	Blue Star Infotech Limited
Joint Ventures (As on 31.03.2014) :	· Blue Star Qatar- WLL · Blue Star M & E Engineering (Sdn) Bhd

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 179.900 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	7.8% Cumulative Convertible Preference Shares	Rs.100/- each	Rs. 1.000 Million
148700000	Equity Shares	Rs. 2/- each	Rs. 297.400 Million
16000	Unclassified Shares	Rs.100/- each	Rs. 1.600 Million
	Total		Rs. 300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
89936105	Equity Shares	Rs.2/- each	Rs. 179.872 Million

NOTE

a) There is no movement in the shares outstanding at the beginning and at the end of the reporting period.

b) Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend 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.

During the year ended 31 March, 2014 the amount of per share dividend proposed as distribution to the equity shareholders is Rs.4 (31 March, 2012: Rs.3)

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

Particular	As at 31 March 2014
	Number of Shares	% of Holding
Equity shares of Rs. 2 each fully paid
IL and FS Trust Company Limited #	11013076	12.25
Ashok Mohan Advani	10492281	11.67
Suneel Mohan Advani	5325948	5.92
HDFC Trustee Company Limited - HDFC Capital Builder Fund	5020457	5.58
ICICI Prudential Discovery Fund	4868769	5.41
Saif Advisor Mauritius Limited. A/C Saif India IV FII Holdings Limited	4731983	5.26

# These shares are held in Trust for the Promoter group who are the beneficial owners.

As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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	179.900	179.872	179.872
(b) Reserves & Surplus	6071.000	5116.005	4763.842
(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)	6250.900	5295.877	4943.714
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	44.900	28.112	33.576
Total Non-current Liabilities (3)	44.900	28.112	33.576
(4) Current Liabilities
(a) Short term borrowings	3319.200	4308.816	3726.725
(b) Trade payables	8408.300	7892.996	7527.452
(c) Other current liabilities	3112.400	4159.892	4134.390
(d) Short-term provisions	790.000	665.404	632.639
Total Current Liabilities (4)	15629.900	17027.108	16021.206
TOTAL	21925.700	22351.097	20998.496
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2399.200	1960.743	2020.431
(ii) Intangible Assets	0.000	192.628	209.099
(iii) Capital work-in-progress	0.000	11.401	30.788
(iv) Intangible assets under development	0.000	143.242	45.829
(b) Non-current Investments	2318.600	1213.579	1213.579
(c) Deferred tax assets (net)	164.700	0.000	0.000
(d) Long-term Loan and Advances	1331.000	1143.465	1113.569
(e) Trade Receivable	673.400	527.507	805.914
(f) Other Non-current assets	10.800	8.412	0.750
Total Non-Current Assets	6897.700	5200.977	5439.959
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	4628.300	5813.980	5088.230
(c) Trade receivables	6407.700	6801.118	6490.538
(d) Cash and cash equivalents	363.300	472.575	109.778
(e) Short-term loans and advances	1054.300	1306.323	920.293
(f) Other current assets	2574.400	2756.124	2949.698
Total Current Assets	15028.000	17150.120	15558.537
TOTAL	21925.700	22351.097	20998.496

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	30807.900	27703.841	27670.598
		Other Income	101.400	545.135	365.289
		TOTAL (A)	30909.300	28248.976	28035.887
Less	EXPENSES
		Cost of raw material and components consumed and Project related cost	17119.300	16534.347	15972.630
		Purchase of traded goods	4299.600	3834.471	4694.482
		(Increase)/decrease in inventories of Finished goods, work-in-progress and traded goods	(83.500)	(622.525)	(288.630)
		Employee benefits expense	2568.400	2340.365	2155.037
		Other expenses	5168.200	4559.982	4148.928
		Exceptional Item	(419.000)
		TOTAL (B)	28653.000	26646.640	26682.447
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2256.300	1602.336	1353.440
Less	FINANCIAL EXPENSES (D)		434.700	496.446	498.528
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1821.600	1105.890	854.912
Less/ Add	DEPRECIATION/ AMORTISATION (F)		393.400	346.929	328.977
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1428.200	758.961	525.935
Less	TAX (H)		-97.100	0.000	8.553
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		1525.300	758.961	517.382
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2224.568	1948.405	1801.685
Less	APPROPRIATIONS
		Proposed final equity dividend (amount per share Rs. 4 (31 March 2013: Rs. 3))	NA	359.744	269.808
		Tax on proposed equity dividend	NA	47.054	45.854
		Transfer to general reserve	NA	76.000	55.000
	BALANCE CARRIED TO THE B/S		3749.868	2224.568	1948.405
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on F.O.B. basis	NA	1594.099	1310.430
		Royalty, Know-how, Professional and Consultation fees	NA	45.670	40.795
		Other Income:	NA
		Commission	NA	149.252	218.658
		Others	NA	19.710	15.855
	TOTAL EARNINGS		NA	1808.731	1585.738
	IMPORTS
		Raw Materials and Components	NA	4397.108	4293.709
		Capital goods	NA	103.494	47.160
		Spares	NA	493.863	442.505
		Traded Goods	NA	2290.873	1792.521
		Others	NA	0.310	0.127
	TOTAL IMPORTS		NA	7285.648	6576.022
	Earnings / (Loss) Per Share (Rs.)		19.96	8.44	5.75

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	972.366	686.651

QUARTERLY RESULTS

PARTICULARS	30.06.2014	30.09.2014	31.12.2014
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	8454.800	6379.700	5907.500
Total Expenditure	7924.000	6173.600	5884.700
PBIDT (Excl OI)	530.800	206.100	22.800
Other Income	35.400	81.600	86.400
Operating Profit	566.200	287.700	109.200
Interest	110.400	105.700	105.100
Exceptional Items	0.000	0.000	183.300
PBDT	455.800	182.000	187.400
Depreciation	94.100	91.300	103.400
Profit Before Tax	361.700	90.700	84.000
Tax	51.600	0.200	21.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	310.100	90.500	63.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	310.100	90.500	63.000

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	4.95	2.74	1.87
Operating Profit Margin (PBDIT/Sales)	(%)	7.32	5.78	4.89
Return on Total Assets (PBT/Total Assets}	(%)	7.35	3.71	2.78
Return on Investment (ROI) (PBT/Networth)		0.23	0.14	0.11
Debt Equity Ratio (Total Debt/Networth)		0.53	0.81	0.75
Current Ratio (Current Asset/Current Liability)		0.96	1.01	0.97

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	179.872	179.872	179.900
Reserves & Surplus	4763.842	5116.005	6071.000
Net worth	4943.714	5295.877	6250.900
long-term borrowings	0.000	0.000	0.000
Short term borrowings	3726.725	4308.816	3319.200
Total borrowings	3726.725	4308.816	3319.200
Debt/Equity ratio	0.754	0.814	0.531

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	27670.598	27703.841	30807.900
		0.120	11.204

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	27670.598	27703.841	30807.900
Profit	517.382	758.961	1525.300
	1.87%	2.74%	4.95%

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	No
8	Designation of contact person	No
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)	No
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	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

BENCH:- BOMBAY PRESENTATION DATE: 23.04.2015
Lodging No:-	NMAL/1217/2015	Failing Date:-	23/04/2015	Reg. No.:	NMA/856/2015	Reg. Date:	24.06.2015
Lodging No:- CEXAL/409/2014
Petitioner:-	THE COMMISSIONER OF CENTRAL EXCISE		Respondent:-	BLUE STAR LIMITED
Petn.Adv:-	JITENDRA BRIJBHUSHAN MISHRA (I2937)
District:-	MUMBAI
Bench:-	DICISION
Status:-	Pre-Admission		Category:-	NOTICE OF MOTION (TAX)
Last Date : -	03/07/2015		Stage:-
Act:-	ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST		Under Section:-	35(G)

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90231007	01/03/1999	50,000,000.00	BANQUE NATIONAL DE PARIS FRENCH BANK	62 HOMJI STREET, MUMBAI, MAHARASHTRA - 400001, INDIA	-
2	90230983	22/06/1999 *	50,000,000.00	STATA BANK OF INDIA	COMMERCIAL BRANCH, MUMBAI, MAHARASHTRA - 400023, INDIA	-
3	90230981	26/03/1998	10,000,000.00	BANK OF BARODA	BACKAY RECLAMATION, RAM HAHEL DINDH VACHHA ROAD, MUMBAI, MAHARASHTRA - 400020, INDIA	-
4	90230815	30/08/1994	85,000,000.00	BANK OF BARODA	RECLAMATION BRANCH, JAMSHEDJI CHURCHGATE, MUMBAI, MAHARASHTRA - 400020, INDIA	-
5	90230646	14/12/1995 *	50,000.00	STATE BANK OF INDIA	BOMBAY SAMACHAR MRAG, MUMBAI, MAHARASHTRA - 400023, INDIA	-
6	90230555	14/02/1995 *	400,000.00	STATE BANK O F INDIA	BOMBAY SAACHER MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	-
7	90230518	10/05/2013 *	5,600,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI TED	52/60, MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B75047332
8	90230430	19/12/1986 *	5,000,000.00	THE HONGKONG A7 SHANGHI BANKING CORPORATION	52/60 MAHATMA GANDHI ROAD, MUMBAI, MAHARASHTRA - 400023, INDIA	-
9	90230326	17/05/1981	5,000,000.00	MEROANTIL BANK	PRIVATE LTD, 52/60 MAHATMA GANDHI ROAD, MUMBAI, M ADHYA PRADESH - 400023, INDIA	-
10	90230317	26/09/1980	2,000,000.00	THE ANDHRA BANK LIMITED	MOUNT RAOD, MADRAS, TAMILNADU, INDIA	-
11	90230310	30/05/1980	4,600,000.00	GUJARAT INDUSTRIAL &INVESTAMENT CORPORATION	4 TH FLOOOR NATRAJ CHAMBARD, AHMEDABAD, GUJARAT - 380009, INDIA	-
12	90230303	02/01/1980	1,025,287.00	MESSRSMISHRA DHATU NIGAM LIMITED	DMRL KONCHAN BAGH, HYDERABAD, ANDHRA PRADESH, INDIA	-
13	90230290	18/10/1978	483,200.00	BOKAROA STEEL LIMITED	MAIN ADMINISTATIVE BUILDING, BOKARO STEEL CITY, D HANBED, BIHAR, INDIA	-
14	90230287	13/09/1978	52,561.00	MERCANTILE BANK LIMITED	BOMBAY FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	-
15	90230270	24/12/1976	450,000.00	UNTED COMMERCIAL BANK	CENTURY BHUVAN MRAG, MUMBAI, MAHARASHTRA - 400025, INDIA	-
16	90230255	13/01/1975	7,500,000.00	THE NEW BANK OF INDIA	BRADY HOUSE, MUMBAI, MAHARASHTRA - 400001, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
SHORT TERM BORROWINGS
Buyers credit	NA	493.661
Commercial papers from banks	NA	1000.000
Commercial papers from others	NA	1600.000
Total	NA	3093.661

CORPORATE INFORMATION (As on 31.03.2014)

The Company is into the business of central air conditioning and commercial refrigeration. The Company is also into distribution and maintenance of imported professional electronics and industrial systems.

OPERATING PERFORMANCE (As on 31.03.2014)

Total Revenue of the Company for the year was practically flat at Rs. 28249.000 Million as compared to Rs. 28035.800 Million, on account of the challenging external environment. However, as a result of sharp focus on costs and efficiencies, the Operating Profit before Tax, Depreciation and Amortization went up by 18.4% to Rs. 1602.300 Million as compared to Rs. 1353.400 Million in the previous year.

The Segment Result for Electro Mechanical Projects & Packaged Air conditioning Systems saw a small decline from Rs. 723.300 Million in the previous year to Rs. 671.500 Million, primarily on account of sluggish execution of projects by customers. Cooling Products recorded a healthy increase of 18% in its Segment Result from Rs. 803.500 Million to Rs. 947.700 Million, with an 11% increase in its Segment Revenue from Rs. 9651.600 Million to Rs. 10755.100 Million. The Revenue of Professional Electronics & Industrial Systems declined marginally by 3% from Rs. 1822.900 Million to Rs. 1767.300 Million, whilst the Segment Result remained unchanged at Rs. 298.400 Million.

FINANCIAL PERFORMANCE

Finance costs for the year were held at Rs. 496.400 Million as compared to Rs.498.600 Million, due to a sustained focus on cash flow and tight control on borrowing levels.

MANAGEMENT DISCUSSION AND ANALYSIS (As on 31.03.2014)

BUSINESS SEGMENTS

In accordance with the nature of products and markets addressed, business drivers, and competitive positioning, the lines of business of Blue Star can be segmented as follows:

ELECTRO MECHANICAL PROJECTS AND PACKAGED AIRCONDITIONING SYSTEMS

This business segment covers the design, manufacturing, installation, commissioning and maintenance of central air conditioning plants, packaged/ducted systems and variable refrigerant flow (VRF) systems, as well as contracting services in electrification, plumbing and fire-fighting. After-sales services such as revamp retrofit and upgrades are also included in this segment.

COOLING PRODUCTS

Blue Star offers a wide variety of contemporary and energy-efficient room air conditioners for both residential as well as commercial applications. It also manufactures and markets a comprehensive range of commercial refrigeration products and cold chain equipment.

PROFESSIONAL ELECTRONICS AND INDUSTRIAL SYSTEMS

For over six decades, Blue Star has been the exclusive distributor in India for many internationally renowned manufacturers of professional electronic equipment and services, as well as industrial products and systems. The Company is also in the business of specialized industrial projects.

INDUSTRY STRUCTURE AND DEVELOPMENTS (As on 31.03.2014)

AIRCONDITIONING

In 2013-14, the estimated total market size for airconditioning in India was around Rs. 137500.000 Million. Of this, the market for central airconditioning, including central plants, packaged/ducted systems, VRF systems and other ancillary equipment, was about Rs. 62500.000 Million, while the market for room air conditioners comprised the balance Rs. 75000 Million. During the year, the macro economic environment continued to be challenging with negligible large investments in the commercial real estate segment. The pre-election impasse coupled with high inflation and interest rates, as well as volatility in forex rates adversely impacted demand. While there was an improvement in enquiry generation during the latter part of the year, the rate of order finalization through the year was sluggish. In the room air conditioners business, which is largely driven by the residential segment, the market witnessed a modest growth, after two consecutive years of negative growth. This was mainly due to a relatively strong summer in most parts of the country. However, post summer of 2013, the price increase linked to the depreciation of the Rupee adversely affected the demand. Further, the implementation of Bureau of Energy Efficiency (BEE) Table 2.3 in January 2014 necessitated an upward revision in energy efficiency, resulting in an additional increase in prices for the same star-rating. However, the current penetration level of air conditioners in the country is a mere 3%, and this presents significant opportunities to the players in the room air conditioners business.

COMMERCIAL REFRIGERATION

The commercial refrigeration segment includes a wide range of products such as deep freezers, water coolers, bottled water dispensers, cold rooms, milk coolers, bottle coolers and ice cubers. During the year, these segments performed well with demand from the ice cream, dairy and fast food segments. The Ministry of Agriculture, the Ministry of Food Processing Industries and various State Governments, in co-ordination with industry bodies such as CII, have been taking initiatives to boost the cold chain infrastructure in the country to reduce wastage of perishables and contain food inflation. These initiatives are expected to significantly enhance demand for cold chain equipment in the country.

SEGMENT-WISE ANALYSIS

ELECTRO MECHANICAL PROJECTS AND PACKAGED AIRCONDITIONING SYSTEMS

Electro Mechanical Projects and Packaged Air conditioning Systems continued to be the largest segment, accounting for 55% of the Company’s Total Segment Revenue.

In the electro mechanical projects business, there was demand from metro rail, hospitality, residential, healthcare and mixed-use development projects during the year. There was a concerted effort on improving the quality of new orders, in terms of margins as well as commercial terms. The Company focused on enhancing multi-service orders (mechanical, electrical, plumbing and fire-fighting) and orders of over Rs. 4000.000 Million were booked in this domain during the review period. It also intends to selectively target high-rise residential towers being built by established developers for its multi-service business. The electrical projects business focused on opportunities available in the infrastructure and power sector during the review period. The Company enhanced its capabilities in the areas of construction and engineering, in order to handle large value industrial and power sector orders independently.

Significant orders received in the electro mechanical projects business during the year included Oasis Realty, Mumbai; Delhi Metro Rail Corporation-Phase 3; Danfoss Industries, Chennai; Apollo Hospitals, Visakhapatnam and Mumbai; Centenary Mall, Jamshedpur; Noida One, Noida; Maruti, Gurgaon; JCB, Rajasthan; GIFT City, Ahmedabad; BSES Rajdhani, Delhi; ESIC Hospital, Delhi; RMZ, Bengaluru and Tech Mahindra, Secunderabad; amongst several others.

In the central plant equipment segment, the Company offers a range of screw and scroll chillers as well as air distribution products. The innovative water cooled centrifugal chiller with magnetic bearings, which was launched a few years ago, continued to perform well, registering significant growth despite a flat trend in the centrifugal chillers category. The Company also maintained its leadership position in scroll chillers while the screw chiller segment recorded marginal growth. The Company actively pursued consultants as well as independent contracting companies to enhance its base. It has also set up a network of channel partners to aggressively target potential segments including industrial, hospitality and healthcare. Some of the notable orders won during the year were from Taj Krishna Hotel, Secunderabad; ABL More, Bengaluru; Velammal Medical College, Madurai; Hindustan Aeronautics, Bengaluru; Divis Lab, Secunderabad; OPAL, Dahej; Ashoka University, Chandigarh; Mahindra & Mahindra, Pune; Optimus Generic, Secunderabad; Hotel Amber Palace, Bhopal and Nemcare Hospital, Guwahati.

Blue Star’s ducted systems range comprises packaged airconditioners, ducted split airconditioners and variable refrigerant flow (VRF) systems. While the market for ducted systems declined marginally, the Company registered a modest growth retaining its market leadership position in the segment. The range of VRF airconditioning systems performed well with the Company further consolidating its position by aggressively marketing its solutions amongst customers, consultants, architects and interior designers through product launches, technical handbooks and mailers. The Company also launched a new product category of free match inverters, and the initial response to this category is encouraging. Prestigious orders won in the packaged airconditioning business during the year were from L&T, Chennai; Jai Bhuvan Builders, Goa; Dalmia Cements, Midnapur and Belgaum; Marg Construction (for Police HQ), Delhi; Euro Star, Mumbai; Income Tax Office, Mysore; Paramount Projects (for Moser Baer), New Delhi; Banaras Hindu University, Varanasi; Thermax (for Visakhapatnam Steel Plant), Visakhapatnam and Xavier Institute of Management, Bhubaneswar; amongst others.

COOLING PRODUCTS

This business segment includes room air conditioners, apart from commercial refrigeration products and systems.

During the year, the room air conditioners business of the Company grew faster than the market, thereby increasing its market share. It launched a new range of contemporary and stylish room airconditioners for the residential segment which were available in a large number of retail channels across the country, including several new Tier 3 and 4 towns. It also enhanced its advertising budgets to build brand salience. The above initiatives helped the Company make deep inroads into the residential segment during the year. However, the appreciation of the dollar coupled with the implementation of the new energy efficiency norms had an adverse impact on the pricing as well as margins. During the year, the Company also added several new customers in its national accounts business. Continued efforts in corporate and light commercial segments yielded results by way of large orders received from reputed institutions.

In the commercial refrigeration products segment, the appreciation of the dollar impacted the pricing of imported products such as chest freezers and bottled water dispensers, thereby affecting the overall profitability of the business. Sales of chest freezers and coolers grew well, with enhanced demand from the ice cream and dairy segments. The Company received large orders from Vadilal, Amul, Havmor, Ramani’s, Cream Bell, Hatsun, Karnataka Milk and Lazza. The market also witnessed enhanced demand for glass-top freezers. Sales of storage water coolers were flat due to a slack in demand while off-take of bottled water dispensers also marginally declined.

In the cold chain segment, Blue Star offers a wide range of equipment. During the year, traditional segments like pharma and ice cream contributed significantly with several leading players investing in cold rooms, as part of their capital expansion plans. The Company’s customer list includes prominent pharmaceutical players like Sun Pharma, Gland Pharma, Biocon, Mylan, Hestor Bio, Roche Pharma and Dr Reddy’s, as well as ice cream majors such as Amul, Vadilal, Kwality Walls, Cream Bell and Mother Dairy. The quick service restaurants segment witnessed significant growth with several multi-national chains entering Tier 2 towns. Blue Star continues to enjoy the preferred partner status with most of these food chains. The processed foods segment, driven by changing consumption habits, working youth and rising income levels, holds good promise for the cold chain business.

PROFESSIONAL ELECTRONICS AND INDUSTRIAL SYSTEMS

This segment comprises several strategic business units namely Industrial Projects, Industrial Products and Systems, Material Testing Equipment and Systems (Destructive / Non Destructive), Data Communication Products & Services, Test and Measuring Instruments and Healthcare Systems. Over the years, the Company has changed its business model from being only a distributor of leading global manufacturers to that of a system integrator and value added reseller, thereby moving up the value chain.

During the review period, the demand for hi-technology imported equipment was sluggish due to the appreciation of foreign currencies. In the Industrial Projects business, the Company’s focus is predominantly in the steel segment, but due to the uncertain market conditions, high cost of capital and restrictions in mining, all major projects were either put on hold or deferred. The Industrial Products business was also affected due to the sluggish movement of projects in power, oil and gas, fertilisers, pulp and paper, mining and mineral processing segments. The Material Testing segment received several orders for key system integration in ultrasonic inspection as well as for universal testing machines. While the lack lustre performance of the financial sector adversely impacted the host security modules business in the Data Communication segment, video surveillance and integrated building management systems offer good potential. The Test and Measuring Instruments business which mainly deals with radio frequency, microwave and avionics test and measuring equipment in defence, space, PSUs and paramilitary forces, took several initiatives which paid dividends. In the Healthcare Systems business, the Company did well in the refurbished MRI segment as well as in bone densitometers and patient monitoring.

EXPORTS

The main focus of product exports is on the Middle East, North Africa and SAARC markets. The airconditioning market in the Middle East is doing well due to the revival in commercial construction and return of private investments. Growing consumer awareness on energy conservation, environmental concerns and indoor air quality is expected to drive the market. During the review period, the exports business in the Middle East performed very well, registering record growth. The Company is also making steady progress in developing the market in North Africa, and is in discussions with possible distributors mainly from South Sudan, Tanzania, Nigeria, Kenya and Ghana. In addition, the Company is also making inroads in SAARC countries, and tied up with distributors in Sri Lanka, Bangladesh, Nepal, Vietnam, Maldives and Bhutan during the year.

As far as international projects are concerned, the Company has joint ventures in Qatar as well as in Malaysia. During the year, the Company executed large orders from Qatar University, Kahramaa substations and Qatar Petroleum.

CORPORATE OUTLOOK (As on 31.03.2014)

With the formation of a stable Government, the Company is hopeful of a revival in the investment climate of the country. Enhanced capital investments as well as a recovery in the commercial construction segment will benefit the electro mechanical projects as well as the professional electronics and industrial systems businesses.

The cooling products business continues to perform well mainly due to the superior brand image that the Company enjoys. Blue Star, which was traditionally strong in the corporate and commercial segment, forayed into the residential segment a few years ago with its room airconditioners. Thereafter, the business has grown considerably, outperforming the market year on year. Considering the low penetration levels in the country and the Company’s premium brand perception, the cooling products business offers significant potential in the long-term.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
Claims against the Company not acknowledged as debts		6.716
Sales Tax matters		680.945
Excise Duty matters		10.525
Service Tax matters	NA	101.728
Income Tax matters		250.500
Corporate Guarantee given on behalf of Joint Ventures		560.503
Corporate Guarantee given on behalf of Subsidiary and others		579.750
NOTE Future cash outflows in respect of above matters are determinable only on receipt of judgments/decisions pending at various forums/ authorities. The management does not expect these claims to succeed and accordingly, no provision for the contingent liability has been recognized in the financial statements.

FIXED ASSETS

Tangible Assets

· Land – Freehold

· Land – Leasehold

· Building Sheds and Road

· Plant & Machinery

· Furniture & Fixtures

· Office Equipments

· Vehicles

· Computers

Intangible Assets

· Technical Knowhow

· Software

PRESS RELEASE

Air-conditioner manufacturer Blue Star Limited has undertaken an exercise to consolidate manufacturing operations for which research firm KPMG has been appointed, top company official said.

The process of consolidation of existing six manufacturing facilities began in March and would save the company about Rs 300.000 Million per annum on transportation and logistics, Blue Star Executive Director and President (Air-conditioning and Refrigeration Products Business) B Thiagarajan told reporters. “We are consolidating our manufacturing (facilities).

Manufacturing of components, VRF (variable refrigerant flow) systems, chillers will be centralised. Manufacturing of room air-conditioners may not get centralised.. KPMG is doing that exercise for us…”, he said.

Thiagarajan said the company was spending about Rs 1500.000 Million annually in transportation and logistics alone. “I expect that cost will come down by Rs 300.000 Million after this (consolidation) exercise..,” he said. The company was also planning a new manufacturing unit in southern states, he said.

Thiagarajan and senior company officials were here to unveil the first variable refrigerant flow airconditioning systemBlue Star VRF IV Plus here targeting the residential and commercial segments.

He claimed the new system can save 50 percent of energy compared to the existing products available in the market, adding that out of the Rs 15,0000.000 Million domestic AC market, six percent comprise VRFs segment.

The official said 60 percent of the product was localised at the company’s manufacturing unit in Dadra and Nagar Haveli.

On export business, Thiagarajan said presently the company was making around Rs 2000.000 Million from its overseas market, which comprise the Middle East, North Africa and SAARC countries. It planned to more than double the export turnover by 2018 when the company would celebrate its 75th year. “Exports are around Rs 2000.000 Million out of the Rs 30000.000 Million total turnover.

We export our products to Middle East, North Africa, SAARC countries. Our goal is to take export to Rs 5000.000 Million by 2018…”, he said. On the status of the new plant which the company was eyeing to establish in southern states, he said, “the investment will be around Rs 1500.000 Million and yet to finalise”.

“Basically, we are looking at uninterrupted power. It may come up on outskirts of Bengaluru or Sri City SEZ or Oragadam industrial corridor near Chennai or even in Telangana. Actually, the bifurcation of Andhra Pradesh made us to delay”, he said.

The company has been looking at establishing the unit for more than a year. 

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.63.60
UK Pound	1	Rs.100.09
Euro	1	Rs.71.23

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILITY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		75

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.