MIRA INFORM REPORT

Report No. :	313520
Report Date :	26.03.2015

IDENTIFICATION DETAILS

Name :	MSPL LIMITED

Formerly Known As :	MINERAL SALES LIMITED (w.e.f. 01.07.1997) MINERAL SALES PRIVATE LIMITED

Registered Office :	No.117, Baldota Bhavan, Maharshi Karve Road, Mumbai – 400020, Maharashtra

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	18.10.1961

Com. Reg. No.:	11-012160

Capital Investment / Paid-up Capital :	Rs.384.000 Million

CIN No.: [Company Identification No.]	U13100MH1961PLC012160

TAN No.: [Tax Deduction & Collection Account No.]	BLRM10132D

PAN No.: [Permanent Account No.]	AABCM1040N

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Subject is engaged in the business of mining, processing and sale of iron ore, manufacturing of pellets and generation of electricity through wind power.

No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 17000000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a flagship company of the Karnataka based Baldota Group. It is an established company having moderate track. The company possesses a below average financial profile marked by aggressive capital structure along with highly working capital intensive operations leading to stretched liquidity profile during FY 14. Management has witnessed a better increase in its revenue as well as has reported an acceptable net profitability as against previous losses. The ratings also take into consideration, the profile of other businesses such as shipping business which is yet to achieve its breakeven. However, the wind power business has achieved stable cash flows which may mitigate the group liquidity issues to certain extent. Trade relations seems to be fair. Business is active. Payment terms are reported as slow. In view of promoters, strong background and track, the company can be considered for business dealings with caution.

NOTES :

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

ECGC Country Risk Classification List – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = B+
Rating Explanation	Risk prone credit quality and high risk of default.
Date	20.03.2014

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 DECLINED

MANAGEMENT NON CO-OPERATIVE (91-22-22030989)

LOCATIONS

Registered Office :	No.117, Baldota Bhavan, Maharshi Karve Road, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22030989
Fax No.:	91-22-24133766
E-Mail :	Mspl.sec@mspllimited.com

Corporate Office :	Baldota Enclave, Abheraj Baldota Road, Hospet – 583203, Karnataka, India
Tel. No.:	91-8394-232002/3/4
Fax No.:	91-8394-232333
E-Mail :	email@sapllimited.com

Bangalore Office ::	Baldota Villa, No.368, No.105, Embassy Square, 148, Infantry Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-40301500
Fax No.:	91-80-40301533
E-Mail :	Mspl.blr@mspllimited.com

DIRECTORS

AS ON: 24.09.2014

Name :

Mr. Abheraj Baldota

Designation :

Chairman and Managing Director

Address :

Chinar, Baldota Colony, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

27.12.1940

Date of Appointment :

01.01.2015

DIN No.:

00130619

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U13100MH1961PLC012160	MSPL LIMITED	Managing director	01/01/2015	11/06/1966	-	Active	NO
2	U27101KA1978PLC003360	RAMGAD MINERALS AND MINING LIMITED	Director	29/08/1978	29/08/1978	-	Active	NO
3	U24111KA1975PLC002860	VIJAYA OXYGEN COMPANY LIMITED	Director	04/12/1978	04/12/1978	-	Active	NO
4	U85110KA1992PLC013538	VIJAYANAGAR INDUSTRIAL CREDITS LIMITED.	Director	16/09/1992	16/09/1992	-	Active	NO
5	U27103KA2005PLC037892	AARESS IRON AND STEEL LIMITED	Director	08/12/2005	08/12/2005	-	Active	NO
6	U23201MH2006PLC158596	MSPL GASES LIMITED	Director	03/01/2006	03/01/2006	-	Active	NO
7	U24110MH2006PTC159964	GOOD EARTH CHEMICALS PRIVATE LIMITED	Director	23/02/2006	23/02/2006	-	Active	NO
8	U74999MH2007NPL168975	JAIN INTERNATIONAL TRADE ORGANISATION	Director	11/12/2010	03/04/2007	20/09/2014	Active	NO
9	U93000TN2012NPL086435	WORLD VEG COUNCIL	Director	21/06/2012	21/06/2012	-	Active	NO

Name :

Mr. Narendrakumar Rahul Kumar Baldota

Designation :

Managing director

Address :

Chinar, Baldota Colony, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

26.12.1967

Date of Appointment :

01.01.2015

DIN No.:

00130764

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24111KA1975PLC002860	VIJAYA OXYGEN COMPANY LIMITED	Director	29/07/1988	29/07/1988	-	Active	NO
2	U85110KA1992PLC013538	VIJAYANAGAR INDUSTRIAL CREDITS LIMITED.	Director	30/12/1992	30/12/1992	-	Active	NO
3	U13100MH1961PLC012160	MSPL LIMITED	Managing director	01/01/2015	16/12/1995	-	Active	NO
4	U27103KA2005PLC037892	AARESS IRON AND STEEL LIMITED	Director	08/12/2005	08/12/2005	-	Active	NO
5	U23201MH2006PLC158596	MSPL GASES LIMITED	Director	03/01/2006	03/01/2006	-	Active	NO
6	U24110MH2006PTC159964	GOOD EARTH CHEMICALS PRIVATE LIMITED	Director	23/02/2006	23/02/2006	-	Active	NO
7	U74899DL1969NPL005064	FEDERATION OF INDIA MINERAL INDUSTRIES	Director	09/07/2007	09/07/2007	23/05/2014	Active	NO
8	U27101KA1978PLC003360	RAMGAD MINERALS AND MINING LIMITED	Director	28/09/2012	02/01/2012	-	Active	NO

Name :

Mr. Narendrakumar Shrehik Kumar

Designation :

Managing director

Address :

Chinar, Baldota Colony, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

27.11.1971

Date of Appointment :

01.01.2015

DIN No.:

00130831

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current deignation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85110KA1992PLC013538	VIJAYANAGAR INDUSTRIAL CREDITS LIMITED.	Director	16/09/1992	16/09/1992	-	Active	NO
2	U24111KA1975PLC002860	VIJAYA OXYGEN COMPANY LIMITED	Director	28/03/1996	28/03/1996	-	Active	NO
3	U13100MH1961PLC012160	MSPL LIMITED	Managing director	01/01/2015	21/09/1998	-	Active	NO
4	U27101KA1978PLC003360	RAMGAD MINERALS AND MINING LIMITED	Managing director	24/12/2014	01/02/1999	-	Active	NO
5	U27103KA2005PLC037892	AARESS IRON AND STEEL LIMITED	Director	08/12/2005	08/12/2005	-	Active	NO
6	U23201MH2006PLC158596	MSPL GASES LIMITED	Director	03/01/2006	03/01/2006	-	Active	NO
7	U24110MH2006PTC159964	GOOD EARTH CHEMICALS PRIVATE LIMITED	Director	23/02/2006	23/02/2006	-	Active	NO

Name :

Mr. Hemappa Ramkrishna Sawkar

Designation :

Director

Address :

292, 5^th Block 38^th, A Cross Jaya Nagar, Bangalore – 560041, Karnataka, India

Date of Birth/Age :

29.03.1935

Date of Appointment :

24.09.2014

DIN No.:

00143273

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U22210KA1997PTC022619	LEEDS ENTERPRISES PRIVATE LIMITED	Director	10/11/1997	10/11/1997	-	Active	NO
2	U31101KA1996PTC019928	SANSONVEE VENTURES (INDIA) PRIVATE LIMITED	Director	28/07/1998	28/07/1998	25/09/2006	Strike off	NO
3	U13100MH1961PLC012160	MSPL LIMITED	Director	24/09/2014	21/09/1998	-	Active	NO
4	U70101KA1987PTC008328	KAVITA APARTMENT OWNERS CO PRIVATE LIMITED	Director	27/09/2002	27/09/2002	-	Active	NO
5	U27101KA1978PLC003360	RAMGAD MINERALS AND MINING LIMITED	Director	30/09/2014	14/06/2014	-	Active	NO

Name :

Mr. Ravindra Madhava

Designation :

Director

Address :

Flat No. 1, B PGP Manor, 29 Barnaby Road, Kilpauk, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

02.07.1945

Date of Appointment :

24.09.2014

DIN No.:

01086790

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U45202MH1996PLC102855	SOWIL LIMITED	Director	23/02/2004	23/02/2004	-	Active	NO
2	U13100MH1961PLC012160	MSPL LIMITED	Director	24/09/2014	01/11/2005	-	Active	NO
3	U18109DL1996PLC075132	ANGELIQUE INTERNATIONAL LIMITED	Director	26/09/2014	28/03/2007	-	Active	NO
4	U60100TG1988PLC009254	BALAJI RAIL ROAD SYSTEMS LIMITED	Director	14/09/2012	09/08/2012	-	Active	NO
5	U27101KA1978PLC003360	RAMGAD MINERALS AND MINING LIMITED	Director	30/09/2014	14/06/2014	-	Active	NO

Name :

Venkataiah Meda

Designation :

Wholetime Director

Address :

No. OBA, 1019-1, Second Cross MJ Nagar, Hospet, Bellary – 583203, Karnataka, India

Date of Birth/Age :

02.07.1945

Date of Appointment :

15.10.2012

DIN No.:

06404575

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 24.09.2014

Names of Shareholders		No. of Shares
Abheraj Vasanti Baldota		6716160
Abheraj Narendrakumar Baldota		9024000
Narendrakumar Rahulkumar Baldota		19353600
Rahulkumar Lavina Baldota		9600000
Narendrakumar Shrenik Kumar Baldota		30442980
Narendrakumar Chitra Baldota		200
Shrenik Kumar Rashmi Baldota		3840
Narendrakumar Baldota HUF		1651200
Ramgad Minerals and Mining Limited, India		8020
Total		76800000

AS ON: 24.09.2014

Equity Share Break up (Percentage of Total Equity)

Category		Percentage
Bodies corporate		0.01
Directors or relatives of Directors		99.99
Total		100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of mining, processing and sale of iron ore, manufacturing of pellets and generation of electricity through wind power.

Products :

Product Description	Item Code No. (ITC Code)
Iron ore Fines	2601

Brand Names :

Agencies Held :

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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 :

Not Divulged

Bankers :

Banker Name	State Bank Of India
Branch Address	Collge Road Branch, Parwaz Plaza, College Road, Hospet - 583201, Karnataka, 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)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name	ICICI Bank Limited
Branch Address	No. 1, Commissariat Road, Bangalore - 560025, Karnataka, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term Loan from Bank	3550.132	3367.176
Short Term Borrowing
Term Loan from bank	6252.667	4446.410
Total	9802.799	7813.586

Banking Relation:

Financial Institution:	International Finance Corporation, 2121 Pennsylvania Avenue. N. W., D.C 204433, Washington – 20433, United State of America

Auditors :
Name :	Deloitte Haskins And Sells LLP Chartered Accountants
Address :	Tower 3, 27th-32nd, Floor, India bulls Finance Centre, Senapati, Bapat Marg, Elphinstone(West), Mumbai-400013
PAN No.:	AACFD4815A

Name :	S. B. Chhajed and Company Chartered Accountants
Address :	202, Inder Tower,Kaka Saheb Gadgil Marg, Dadar (West) , Mumbai-400025
PAN No.:	ABCFS0439E

Memberships :	--

Collaborators :	--

Partnership Firm in which the Company having a 90% share in profit and loss:	P. Venganna Setty and Brothers (PVS)

Enterprises over which KMP have Significant Influence:	Ramgad Minerals and Mining Limited, India (RMML) [U27101KA1978PLC003360] M/s R. S. Enterprises Partnership Firm Vijayanagar Industrial Credits Limited (VICL) MSPL Gases Limited, India [U23201MH2006PLC158596] Good Earth Chemicals Private Limited Vijaya Oxygen Company Limited Aaress Iron and Steel Company Limited Baldota Brothers Partnership Firm Siddarameswara Mining Co. Partnership Firm Yashodhan Enterprises Partnership Firm United Trading Company Partnership Firm

Subsidiary:	MSPL Maritime Pte. Limited, India

Subsidiary of MSPL Maritime Pte. Limited:	MSPL Diamond Pte. Limited

Proprietary concern of Smt. Chitra N. Baldota:	Mahakali Gases

Partnership firm in which wives of KMPs are partners:	Mahalakshmi Gases

Partnership firm in which wives of KMPs are partners:	L R Industries Ratan Hira Associates

CAPITAL STRUCTURE

AS ON: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

100000000	Equity Shares	Rs.5/- each	Rs.500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

76800000	Equity Shares	Rs.5/- each	Rs.384.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	384.000	384.000	384.000
(b) Reserves & Surplus	5771.815	5199.612	8308.510
(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)	6155.815	5583.612	8692.510

(3) Non-Current Liabilities
(a) long-term borrowings	3550.132	3453.278	2076.599
(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	25.892	28.022	17.640
Total Non-current Liabilities (3)	3576.024	3481.300	2094.239

(4) Current Liabilities
(a) Short term borrowings	6721.901	4905.756	5446.603
(b) Trade payables	830.583	731.221	714.212
(c) Other current liabilities	835.730	2332.070	1470.806
(d) Short-term provisions	139.981	119.899	96.610
Total Current Liabilities (4)	8528.195	8088.946	7728.231

TOTAL	18260.034	17153.858	18514.980

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4192.574	4788.437	5396.644
(ii) Intangible Assets	105.700	119.667	133.634
(iii) Capital work-in-progress	187.051	157.271	147.536
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2332.484	2901.378	3307.688
(c) Deferred tax assets (net)	559.279	173.223	0.000
(d) Long-term Loan and Advances	5624.592	4624.060	3237.660
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	13001.680	12764.036	12223.162

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2457.816	1422.514	1026.867
(c) Trade receivables	579.963	477.828	2716.597
(d) Cash and cash equivalents	1451.497	1100.253	947.427
(e) Short-term loans and advances	721.398	1340.243	1560.737
(f) Other current assets	47.680	48.984	40.190
Total Current Assets	5258.354	4389.822	6291.818

TOTAL	18260.034	17153.858	18514.980

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	7983.493	5559.385	7254.267
	Other Income	379.760	429.471	458.926
	TOTAL	8363.253	5988.856	7713.193

Less	EXPENSES
	Cost of Materials Consumed	2599.551	2367.431	1498.211
	Purchases of Stock-in-Trade	0.000	95.795	273.582
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(99.099)	(188.488)	521.844
	Employees benefits expense	402.772	447.413	563.089
	Other expenses	2277.421	2009.764	3061.789
	Exceptional items	811.681	2505.306	2376.170
	TOTAL	5992.326	7237.221	8294.685

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2370.927	(1248.365)	(581.492)

Less	FINANCIAL EXPENSES	1385.654	1218.485	1032.808

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	985.273	(2466.850)	(1614.300)

Less/ Add	DEPRECIATION/ AMORTISATION	765.141	888.483	1406.128

	PROFIT/ (LOSS) BEFORE TAX	220.132	(3355.333)	(3020.428)

Less	TAX	(386.056)	(173.223)	(343.563)

	PROFIT (LOSS) FOR PERIOD FROM CONTINUING OPERATIONS	606.188	(3182.110)	(2676.865)

	SHARE OF PROFIT (LOSS) OF ASSOCIATES	33.985	73.212	0.000

	PROFIT/ (LOSS) AFTER TAX	572.203	(3108.898)	(2676.865)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	3327.953	6436.851	9113.717

	Balance Carried to the B/S	3900.156	3327.953	6436.852

	Earnings / (Loss) Per Share (Rs.)	7.45	(40.48)	(34.86)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PARTICULARS
Net Profit Margin (PAT/Sales)	(%)	7.17	(55.92)	(36.90)

Operating Profit Margin (PBITD/Sales)	(%)	29.70	(22.46)	(8.02)

Return on Total Assets (PBT/Total Assets}	(%)	1.45	(24.10)	(20.06)

Return on Investment (ROI) (PBT/Networth)		0.04	(0.60)	(0.35)

Debt Equity Ratio (Total Debt /Networth)		1.67	1.50	0.87

Current Ratio (Current Asset/Current Liability)		0.62	0.54	0.81

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	384.000	384.000	384.000
Reserves & Surplus	8308.510	5199.612	5771.815
Net worth	8692.510	5583.612	6155.815

long-term borrowings	2076.599	3453.278	3550.132
Short term borrowings	5446.603	4905.756	6721.901
Total borrowings	7523.202	8359.034	10272.033
Debt/Equity ratio	0.865	1.497	1.669

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	7254.267	5559.385	7983.493
		(23.364)	43.604

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	7254.267	5559.385	7983.493
Profit	(2676.865)	(3108.898)	572.203
	(36.90%)	(55.92%)	7.17%

LOCAL AGENCY FURTHER INFORMATION

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

OPERATIONS:

Developed economies were gaining traction during 2013 whereas emerging economies loosing ground. The global recovery was led by fiscal stimulus, low interest rates and reassurance by central banks. US recovery witnessed so far is represented by improved metrics showing encouraging employment numbers and up move in spending and these have resulted into tapering of quantitative easing program whereas emerging economies have been suffering from currency slide. The euro zone dispelled recessionary fears on the back of eased up credit flow and improved resilience while growth in China has been trying to rebound in the second half of 2013 on account of acceleration in investment. The global economy concluded the year with a better move compared to the beginning of the year and growth momentum is expected to march towards further improvement during 2014. Global GDP is expected to grow at 3.70% in 2014 and 3.90% in 2015 as compared to 3.00% in 2013 based on estimate of IMF.

The Indian economy has been going through most challenging times which culminated in lower than 5.00% growth in GDP for two consecutive years i.e. 2012-13 and 2013-14. The slowdown is generally in line with trends in other emerging economies but rather deeper, especially when they compare with the average growth of 8.30% p.a. during 2004-05 to 2011-12. The slowdown in growth was significantly marked in manufacturing sector with the output in capital goods also declining for the third year in a row from 2011-12. A sharp deterioration in current account deficit (CAD) has been arrested recently by a sizeable drop in imports and moderate growth in export in 2013-14 and year has ended with a CAD of 1.70% of GDP as against 4.70% in 2012-13. The fiscal deficit as a proportion of GDP also declined in a row with 4.90% and 4.50% in 2012-13 and 2013-14 respectively from 5.70% of GDP in 2011-12. Moderation in inflation has been noticed although albeit mild would help ease the monetary policy stance and revive the investors confidence and Indian economy can look forward to a better growth momentum in FY 2014-15 and beyond especially due to expected pragmatic policy approach of the present government garnering a sweeping mandate from the electorate.

The company has restarted mining operation in its Vysanakere Iron Ore mine from 2013 as permitted by the order of the Supreme Court after satisfactory completion of R and R planned activities as leader in Hospet-Bellary belt and has successfully mined 9 lakhs tones of Iron Ore during the year as allowed against its full capacity of 25 lakhs tones p.a. It can be well conceived that profitability has suffered due to scalability on account of quantitative restrictions in spite of readiness with full infrastructure and facilities. The company looks forward to relaxation of this restrictive operation in due course by the competent authority having regard to the brisk demand for iron ore domestically and basic need for reinstituting free play of demand and supply as is the precondition for economic growth.

The following are the performance highlights of the company for the financial year 2013-14.

This is the first year the company has achieved the positive bottom line after a continued loss for four years due to cessation of its operation and its resultant unforeseen adversaries.

The total income of the company stands at Rs.8363.254 Million for the year 2013-14 compared to the total income of Rs.5988.855 Million for the previous year registering a growth of 39.96%.

The profit before interest, depreciation and including exceptional items for the year stood at Rs.2336.942 Million as compared to the loss of Rs.1175.153 Million for the previous year.

The net profit after taxes (PAT) stood at Rs.572.203 Million for the year as against the whopping loss of Rs.3108.898 Million for the previous year clearly shows the turn around of its performance.

IRON ORE MINING

The ban on export of Iron Ore is continuing in Karnataka. Iron ore mines in states like Goa, Orissa, Jharkhand and Chhattisgarh are under the scrutiny of commissions appointed by the court for irregularities and violations of the laws. The Mine at Goa and Orissa are stopped pending the court orders. The export of iron ore has reduced. The mines in the state of Goa and Orissa are stopped and mining came to a stand still. The sale of Iron ore at Karnataka is as per e-auction procedure under the control of Monitoring Committee. MSPL Limited could sell 6.52 lac tons of ore in the e-auction during 2013-14. It may take another year to have full production from all Category A and B mines as the completion of R and R plans and clearances from the Monitoring Committee are pending.

The Production during 2013-14 is 0.91 Million Ton as restricted. The R and R works are being carried as per prescription and being monitored. The Company adopted a policy to continue to do systematic and scientific mining with a high concern on environment and safety. MSPL Limited has revised proved resources by additional drilling at Vyasanakere Iron Ore Mines. Thus there is possibility of enhancing production limit from 0.91 Million Ton to 1.0 Million Ton. However necessary approval is pending.

As part of Zero waste management and scientific conservation, MSPL has already established suitable technology to beneficiate low grade iron ores occurring in the lease.

The efforts to open the mines in the State of Kerala are continued. The Low Grade Iron Ore deposit of this mine will be beneficiated and pellets will be made. Mining Plan is approved and application for forest clearance is being submitted.

PERFORMANCE OF OTHER PROJECTS

WIND ENERGY

The wind energy generation for the year 2013-14 was 248.72 Million units as compared to 250.906 Million units in the previous year. This fall in generation was due to inconsistent wind in 2013-14 as compared to previous year. The revenue realized on sale of wind power was Rs.911.228 Million during the Financial Year 2013-14 as compared to Rs.906.107 Million in the previous year.

CORPORATE INFORMATION:

Subject is a public company domiciled in India and incorporated under the provision of the Companies Act, 1956. Its shares are not listed on any stock exchange in India. The Company is engaged in the business of mining, processing and sale of iron ore, manufacturing of pellets and generation of electricity through wind power. Registered office of the Company is at Mumbai, Maharashtra and its Corporate office is at Hospet, Karnataka.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term Loan from Bank	0.000	86.102
Short Term Borrowing
Term Loan from Bank	469.234	459.346
Total	469.234	545.448

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10344459	12/03/2012	800,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH,, PARWAZ PLAZA, COLLEGE ROAD, , HOSPET, KARNATAKA - 583201, INDIA	B35870211
2	10201994	07/01/2013 *	1,495,100,000.00	STATE BANK OF INDIA	COLLGE ROAD BRANCH,, PARWAZ PLAZA, COLLEGE ROAD, HOSPET, KARNATAKA - 583201, INDIA	B68018746
3	90239980	24/12/2014 *	14,682,700,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH,, 1ST FLOOR, KRISHI BHAVAN, HUD SON CIRCLE,, BANGALORE, KARNATAKA - 560001, INDIA	C39720115

* Date of charge modification

FIXED ASSETS

Tangible assets

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Railway sidings

Intangible assets

Computer software
Mining rights

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 records 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.62.34
UK Pound	1	Rs.92.64
Euro	1	Rs.68.12

INFORMATION DETAILS

Information Gathered by :	DIP

Analysis Done by :	SUB

Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

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