MIRA INFORM REPORT

Report No. :	324090
Report Date :	23.05.2015

IDENTIFICATION DETAILS

Name :	PRAKASH INDUSTRIES LIMITED
Registered Office :	15 KM. Stone, Delhi Road, Hissar – 125044, Haryana
Tel. No.:	91-11-25305800
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.07.1980
Com. Reg. No.:	05-010724
Capital Investment / Paid-up Capital :	Rs.1344.900 Million
CIN No.: [Company Identification No.]	L27109HR1980PLC0107247
IEC No.:	0588000132
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCP6765H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Exporter and Importer of Rigid PVC Pipes, Wire Rod, TMT Bars and Ferro Alloys and also Generation of Power.
No. of Employees :	5000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 64000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is a well-established company having satisfactory track. The company possesses a favourable financial profile marked by comfortable capital structure and liquidity position during 2014. The ratings also take into consideration the declining profitability margins, past history of debt restructuring and legal risk with respect to the on-going Central Bureau of Investigation (CBI) enquiry on Coal Mining and its promoters on account of allegations of graft and bribery. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of experience of the promoters and consistent track record of profitable operations, the subject can be considered for business dealings at usual trade terms and conditions.

NOTES:

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

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	Issuer rating=BB+ (Is)
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations.
Date	August 06, 2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Mahaveer
Designation :	Accounts Manager
Contact No.:	91-11-25305800
Date :	21.05.2015

LOCATIONS

Registered Office :	15 Km. Stone, Delhi Road, Hissar – 125044, Haryana, India
Tel. No.:	91-11-25305800
Fax No.:	91-11-28062119
E-Mail :	pilho@prakash.com
Website :	http://www.prakash.com
Corporate Office :	IOCL Depotnajafgarh Bihwasan Road, Srivan Bijwasan, New Delhi – 110061, India
Tel. No.:	91-11-25305800 / 28062115 / 16
Fax No.:	91-11-28062119
E-Mail :	pilho@prakash.com
Works :	Located at: · Champa (Chhattisgarh) · Chotia (Chhattisgarh) · Raipur (Chhattisgarh) · Kashipur (Uttarakhand) · Koira, Distt. Koenjhar (Odisha) · Muppandal (Tamilnadu)

DIRECTORS

AS ON 31.03.2014

Name :	Shri V. P. Agarwal
Designation :	Chairman
Name :	Shri Vikram Agarwal
Designation :	Managing Director
Name :	Shri M.L. Pareek
Designation :	Whole - time Director
Name :	Shri P.L. Gupta
Designation :	Whole - time Director
Name :	Shri K. C. Mehra
Designation :	Director
Name :	Dr. S. L. Keswani
Designation :	Director
Name :	Shri Y.N. Chugh
Designation :	Director
Name :	Shri M.R. Agarwal
Designation :	Director
Name :	Shri Pankaj Chaturvedi
Designation :	Director
Name :	Smt Purnima Gupta
Designation :	Director
Name :	Shri Kanha Agarwal
Designation :	Director

KEY EXECUTIVES

Name :	Shri Manoj Aggarwal
Designation :	Company Secretary

SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7165528	5.33
Bodies Corporate	55356862	41.16
Sub Total	62522390	46.49
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	62522390	46.49
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3928425	2.92
Financial Institutions / Banks	3785	0.00
Insurance Companies	300	0.00
Foreign Institutional Investors	5171697	3.85
Sub Total	9104207	6.77
(2) Non-Institutions
Bodies Corporate	36315945	27.00
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	19398949	14.42
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6204157	4.61
Any Others (Specify)	942866	0.70
NRIs/OCBs	942866	0.70
Sub Total	62861917	46.74
Total Public shareholding (B)	71966124	53.51
Total (A)+(B)	134488514	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	134488514	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Rigid PVC Pipes, Wire Rod, TMT Bars and Ferro Alloys and also Generation of Power.
Products :	PVC Pipes Wire Rod TMT Bars Ferro Alloys Generation of Power
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash/ Advance Payment / L/C/ Cheque/ Credit
Purchasing :	Cash/ Advance Payment / L/C/ Cheque/ Credit

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 Available

Bankers :

• Corporation Bank
• Kotak Mahindra Bank

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans
From banks	439.300	874.900
From others	2977.700	2817.000
Short Term Borrowings
Working capital loan from bank	230.400	324.200
Total	3647.400	4016.100

NOTES:

Long Term Borrowings

·

(Rs. In Million)

Term of repayment of Secured Term Loans are as follows :	1-3 Years	4 - 5 years	6 - 10 years
Term Loan from banks	439.000	0.300	--
Term Loan from others	1232.900	831.500	913.300

· Term loans are secured by mortgage of all immovable properties of the Company, both present and future and are also secured by way of hypothecation of the movable properties of the Company including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts), subject to prior charge of the Company's banker on specified movables for working capital requirements, ranking pari passu in all respects with existing charges and personal guarantees of the Chairman and the Managing Director.

· Term Loans from banks and others include Rs.18.200 Million (Rs.32.700 Million) and Rs.7.200 Million (Rs.5.700 Million) respectively secured against the vehicles financed by the concerned lenders.

Short Term Borrowings

· Working Capital loan from bank, repayable on demand is secured by hypothecation of raw materials, consumables stores and spare parts, stock in process, finished goods, book debts and by personal guarantees of the Chairman and the Managing Director of the Company. Further they are also secured by way of pari passu first charge on all the immovable properties of the Company.

Statutory Auditors :
Name :	Chaturvedi and Partners Chartered Accountants
Joint Venture Entities :	· Madanpur (North) Coal Company Private Limited · Fatehpur Coal Mining Company Private Limited
Enterprise on which key management personnel and/or their relatives exercise significant influence with whom transactions have taken place during the year :	· Primenet Global Limited · Surya Roshni Limited · Prakash Natural Resources Limited · Vanshi Farms Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
170000000	Equity Shares	Rs. 10/- each	Rs. 1700.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
134488514	Equity Shares	Rs. 10/- each	Rs. 1344.900 Million

· Reconciliation of shares outstanding at the beginning and end of the reporting period.

Equity Shares	Number of Shares	Rs. In Million
At the beginning of the year	134488514	1344.900
Issued during the year	--	--
Outstanding at the end of the year	134488514	1344.900

· Terms/rights attached to equity shares.

The Company has only one class of equity shares having par value of Rs.10 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. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all the preferential amounts, in proportion to their shareholding.

· Details of shareholders holding more than 5% shares in the Company.

Name of Shareholder	Number of Shares	% holding
Amarjoti Vanijya Private Limited	10375750	7.71
GMK Builders Private Limited	8164800	6.07

· Foreign Currency Convertible Bonds (FCCB) holders have an option to get their bonds converted into equity shares of the Company.

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	1344.900	1344.900	1344.900
(b) Reserves & Surplus	20982.900	19591.400	18236.300
(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)	22327.800	20936.300	19581.200
(3) Non-Current Liabilities
(a) long-term borrowings	7023.000	7885.300	8621.500
(b) Deferred tax liabilities (Net)	870.600	815.200	806.200
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	139.300	140.700	127.200
Total Non-current Liabilities (3)	8032.900	8841.200	9554.900
(4) Current Liabilities
(a) Short term borrowings	230.400	324.200	114.200
(b) Trade payables	500.600	478.000	364.800
(c) Other current liabilities	2996.100	1776.400	1878.600
(d) Short-term provisions	435.400	256.700	273.800
Total Current Liabilities (4)	4162.500	2835.300	2631.400
TOTAL	34523.200	32612.800	31767.500
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17416.400	17103.300	16012.100
(ii) Intangible Assets	56.000	83.000	110.000
(iii) Capital work-in-progress	8349.200	7396.200	7953.600
(iv) Intangible assets under development	581.900	501.300	464.900
(b) Non-current Investments	21.800	21.800	21.400
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3792.600	3663.600	3128.600
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	30217.900	28769.200	27690.600
(2) Current assets
(a) Current investments	331.700	134.000	482.900
(b) Inventories	2328.200	2055.900	1784.600
(c) Trade receivables	868.600	887.900	922.200
(d) Cash and cash equivalents	205.100	252.500	497.200
(e) Short-term loans and advances	563.300	504.600	381.200
(f) Other current assets	8.400	8.700	8.800
Total Current Assets	4305.300	3843.600	4076.900
TOTAL	34523.200	32612.800	31767.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	25966.200	25109.100	21069.300
		Other Income	35.200	24.600	24.600
		TOTAL (A)	26001.400	25133.700	21093.900
Less	EXPENSES
		Cost of Materials Consumed	17858.300	17476.800	13982.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(171.800)	(105.900)	(44.900)
		Employees benefits expense	1222.900	1106.600	892.800
		Other expenses	3300.200	3369.400	2582.600
		TOTAL (B)	22209.600	21846.900	17412.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3791.800	3286.800	3681.400
Less	FINANCIAL EXPENSES (D)		578.300	553.300	138.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3213.500	2733.500	3542.800
Less	DEPRECIATION/ AMORTISATION (F)		1177.600	1063.700	782.500
	PROFIT BEFORE TAX (E-F) (G)		2035.900	1669.800	2760.300
Less	TAX (H)		304.300	20.900	78.700
	PROFIT AFTER TAX (G-H) (I)		1731.600	1648.900	2681.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		162.900	171.400	146.100
Less	APPROPRIATIONS
		Transfer to General Reserve	1500.000	1500.000	2500.000
		Proposed Dividend	134.500	134.500	134.500
		Tax on Dividend	22.900	22.900	21.800
	BALANCE CARRIED TO THE B/S		237.100	162.900	171.400
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	0.000	246.600	287.900
	IMPORTS
		Stores & Spares	6.400	6.200	3.100
		Capital Goods	58.500	0.000	7.300
	TOTAL IMPORTS		64.900	6.200	10.400
	Earnings Per Share (Rs.)		13.00	12.00	20.00

Particulars	31.03.2015
Sales Turnover (Approximately)	27000.000

The above information has been parted by Mr. Mahaveer (Accounts Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	2278.900	1030.100	953.200
Cash generated from operations	3734.900	2870.300	3734.900

QUARTERLY RESULTS

(Rs. In Million)

Particulars	30.06.2014 (Unaudited)	30.09.2014 ( Unaudited)	31.12.2014 (Unaudited)
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	8110.100	6990.500	6873.800
Total Expenditure	6952.100	6117.600	5868.900
PBIDT (Excl OI)	1158.000	872.900	1004.900
Other Income	11.300	19.600	11.900
Operating Profit	1169.300	892.500	1016.800
Interest	138.700	138.300	142.600
Exceptional Items	0.000	0.000	0.000
PBDT	1030.600	754.200	874.200
Depreciation	240.200	249.500	248.700
Profit Before Tax	790.400	504.700	625.500
Tax	127.300	57.400	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	663.100	447.300	625.500
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	663.100	447.300	625.500

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	6.67	6.57	12.73
Net Profit Margin (PBT/Sales)	(%)	14.60	13.09	17.47
Return on Total Assets (PBT/Total Assets}	(%)	7.96	6.76	11.83
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.14
Debt Equity Ratio (Total Debt /Networth)		0.43	0.44	0.49
Current Ratio (Current Asset/Current Liability)		1.03	1.36	1.55

STOCK PRICES

Face Value	Rs.10.00
Market Value	Rs.39.15

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	1344.900	1344.900	1344.900
Reserves & Surplus	18236.300	19591.400	20982.900
Net worth	19581.200	20936.300	22327.800
long-term borrowings	8621.500	7885.300	7023.000
Short term borrowings	114.200	324.200	230.400
Current Maturities of Long-Term Debts	953.200	1030.100	953.200
Total borrowings	9688.900	9239.600	8206.600
Debt/Equity ratio	0.495	0.441	0.368

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	21069.300	25109.100	25966.200
		19.174	3.414

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	21069.300	25109.100	25966.200
Profit	2681.600	1648.900	1731.600
	12.73%	6.57%	6.67%

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	No
10]	Date of Birth of Proprietor / Partners / Directors	No
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	Yes
35]	Negative Reporting by Auditors in the Annual Report	No

PERFORMANCE

During the year, the Company has achieved net sales revenue of Rs.260.000 Million as against Rs.251.300 Million in the previous year. The operating EBITDA for the year stood at Rs.37.900 Million as compared to 3290.000 Million of previous year showing a growth of 15%. After providing for interest, depreciation and tax, the net profit of the Company stands at Rs.1730.000 Million during the year.

OPERATIONAL REVIEW

The Directors have pleasure in informing you that the performance of the integrated steel plant of the Company was satisfactory during the year with improved production volumes, turnover and profitability. Capacity additions were successfully implemented in the Ferro Alloys division and the Steel Melting Shop and these divisions have clocked record production levels during the year. This has contributed significantly both to the top-line and bottom-line and resulted in optimum utilization of power capacities. In the finished steel segment, particularly, in Wire Rods and TMT bars, the company has taken various steps to expand the distribution channel network to enhance the reach and visibility of the products.

This has helped the company in achieving optimum level of production and capacity utilization in this segment. Correction in iron ore prices along with improved availability towards the later part of the year has made a visible impact towards cost reduction and improvement in the margins. The operations of captive coal mine were stable with uninterrupted production. Rigid PVC Pipes division also performed satisfactory during the year. The company continues to focus on its commitment towards quality which has enabled it to create a niche in the market for its products.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure & Developments

The Indian Steel Industry is expected to grow at a robust pace in the coming years. From the current tally of 4th largest steel producing country in the world, it is expected to become the 2nd largest steel producer by the year 2015. The National Steel policy has envisaged the domestic steel production to reach up to 110 mn tpa by 2020. The demand is expected to further spike with the US$1 trillion of infrastructure investments expected over the next five years. On the global front, the world steel demand is expected to witness a rebound with a growth of 3.3%, which will be largely contributed by the developed economies. The steel demand is expected to pick up in the developing countries also with the spurt in construction activities, urbanization, industrialization, political stability and pro industry credit policies. As regards India, it is the 4th largest producer of iron ore in the world and it continues to enjoy this advantage over other steel producing countries on account of rich and abundant reserves of iron ore, which are sufficient to meet the expected steel demand. On the whole, the future outlook is bright and promising for the Indian Steel Industry in the years to come.

Segment Wise / Product Wise Performance / Outlook

The Steel, Power and Mining divisions of the company have performed satisfactorily during the year under review. The company made addition in its Ferro Alloys and Steel Melting Shop capacity during the year by setting up new furnaces, which resulted in achieving higher production in the divisions. During the year, the capacity utilization in the finished steel products namely, Wire Rod and TMT Bars was also satisfactory during the year. Captive coal mining operations continued at optimal levels throughout the year. The Rigid PVC pipe division also performed well during the year.

LITIGATION DETAILS:

IN THE HIGH COURT OF DELHI AT NEW DELHI

  CS(OS) 3525/2014

  GANNON DUNKERLEY and CO LTD ..... Plaintiff

  Through Mr. A.K. Seth, Advocate

versus

  M/S PRAKASH INDUSTRIES LTD ..... Defendant

  Through Mr. Aarthy Venkat, Advocate

  CORAM:

  SH. ANIL KUMAR SISODIA (DHJS), JOINT REGISTRAR (JUDICIAL)

   O R D E R

   14.05.2015


  Defendant has filed written statement and counter claim. Copies of

written statement and counter claim be supplied to ld. counsel for

plaintiff within one week from today.

  Ld. counsel for defendant seeks time to file documents. Let the same

be filed within four weeks from today.

  Registry shall register the counter claim separately as CC Number.

  Plaintiff shall file replication and reply to the counter claim

within four weeks from the date of receipt of copies.

  Defendant shall file rejoinder to the counter claim, if any, within

four weeks thereafter.

  Put up for completion of pleadings and admission/denial of documents

on 13th October, 2015.

  ANIL KUMAR SISODIA (DHJS)

  JOINT REGISTRAR (JUDICIAL)

  MAY 14, 2015/Savita

  $ 23

UNSECURED LOAN:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Foreign currency convertible bonds (FCCB)	3606.000	4193.400
Total	3606.000	4193.400

· The Company had issued FCCB of USD 110 Million in earlier years, out of which FCCB of USD 32.9 Million got converted into Equity Shares of the Company. Out of Balance USD 77.1 Million, FCCB of Rs.1027.700 Million (USD 17.1 Million) are due for redemption on 13th October, 2014 and carry interest @5.625% and FCCB of Rs.3606.000 Million (USD 60 Million) are due for redemption on 30th April, 2015 and carry interest @5.25%.

However, the respective bond holders have an option to get their bonds converted into equity shares of the Company on or before the maturity date. Outstanding FCCB are repayable in Foreign Currency and their repayments have not been hedged by any derivative instrument or otherwise by the Company.

(Rs. In Million)

STATEMENT OF STANDALONE AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED

31^st, DECEMBER 2014

Rs. in Million

Sr. No.	Particular	3 Months Ended	Preceding 3 Months Ended	Year Ended
		31.12.2014	30.09.2014	31.12.2014
		Unaudited	Unaudited	Unaudited
1.	Income from operations
	Net sales/ Income from operations (Net excise duty)	6873.800	6990.500	21974.400
	Other operating Income	--	--	--
	Revenue From Operations	6873.800	6990.500	21974.400
2.	Expenditure
	Cost of Materials Consumed	4578.300	5111.300	15240.500
	Purchases of Stock-in-Trade
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	161.500	(205.500)	62.000
	Employee benefits expenses	366.600	395.000	1087.200
	Depreciation and amortization expenses	248.700	249.500	738.400
	Other expenses	762.500	816.800	2548.900
	Total Expenses	6117.600	6367.100	19677.000
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	756.200	623.400	2297.400
4.	Other Income	11.900	19.600	42.800
5.	Profit Before Interest and Exceptional Items (3+4)	768.100	643.000	2340.200
6.	Interest	142.600	138.300	419.600
7.	Profit After Interest but before Exceptional Items (5-6)	625.500	504.700	1920.600
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	625.500	504.700	1920.600
10.	Tax Expense	0.000	57.400	184.700
11.	Net Profit for the period (9-10)	625.500	447.300	1735.900
12.	Paid-up Equity Share Capital (Face Value of Rs.2/- Each)	1344.900	1344.900	1344.900
13.	Reserves Excluding Revaluation Reserve	--	--	--
14.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	4.65	3.33	12.91
	b) Basic and diluted EPS after extraordinary items	4.65	3.33	12.91
15.	Public Shareholding
	-Number of Shares	71966124	71966124	71966124
	- Percentage of Shareholding	53.51	53.51	53.51
16.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	24526400	Nil	24526400
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	39.23	Nil	39.23
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	18.24	Nil	18.24
	b) Non Encumbered
	- Number of Shares	37995990	62522390	37995990
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	60.77	100.00	60.77
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	28.25	46.49	28.25

Particulars	3 Months Ended 31.12.2014
Pending at the beginning of the quarter	--
Received during the quarter	5
Disposed of during the quarter	5
Remaining unresolved at the end of the quarter	--

UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Million)

Particulars	3 Months Ended	Preceding 3 Months Ended	Year Ended
	31.12.2014	30.09.2014	31.12.2014
	Unaudited	Unaudited	Unaudited
1. Segment Revenue
a. Power	1153.00	1098.500	3337.300
b. Steel	6357.400	6417.100	20275.100
c. PVC Pipe and others	509.000	553.000	1659.900
Total	8019.400	8068.600	25272.300
Less : Inter Segment Revenue	1145.600	1078.100	3297.900
Net Sales	6873.800	6990.500	21974.400
2. Segment Result (Profit before Interest and Tax)
a. Power	726.200	365.300	1531.300
b. Steel	6.400	225.600	673.200
c. PVC Pipe and others	35.500	52.100	135.700
Total	768.100	643.000	2340.200
Less : Interest	142.600	138.300	419.600
Profit before Tax	625.500	504.700	1920.600
3. Capital Employed
a. Power	13712.100	13700.900	13712.100
b. Steel	17709.900	17939.000	17709.900
c. PVC Pipe and others	228.800	312.000	228.800
Total	31650.800	31951.900	31650.800

NOTES:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 11^th February, 2015. The Auditors have carried out a limited review of the above results.

2. a) The Hon’ble Supreme Court of India by its Order dated 24^th September, 2014 has cancelled certain Coal blocks through auction by the Government of India and is hopeful to get allocation of suitable coal block(s) to meet requirements.

b) The Hon’ble Supreme Court of India has also imposed an additional levy of Rd.295 per MT on extraction of Company from its coal mine since operations commenced. Pursuant to the order, the Company has paid Rs.2342.100 Million due on the quantities extracted till 24^th September, 2014. In addition, there is a liability of Rs.101.300 Million relating to the period from 25^th September, 2014 to 31^st December, 2014, due for payment on 30^th June, 2015. Since this is an expenses of exceptional nature and majorly related to the previous accounting periods, necessary adjustment in the Profit and Loss account will be made by the Company at the time of finalization of its yearly accounts and accordingly, the amount paid is accounted for as advance.

c) Pending finalization of the compensation receivable for the cancelled mines, no adjustments in the book value of investments made in mining assets has been made.

3. The Company has revised depreciation rates on its fixed assets w.e.f. 1^st April., 2014 as per useful life specified in schedule II of the Companies Act, 2013 or reassessed by the Company Accordingly, the depreciation for the quarter and nine month ended 31^st December, 2014 is lower by Rs.58.500 Million and Rs. 173.700 Million respectively.

4. Figures have been regrouped/ rearranged wherever considered necessary.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10503265	29/05/2014	2,505,000.00	ING VYSYA BANK LIMITED	22, M G ROAD,BANGALORE, BANGALORE, KARNATAKA - 560001, INDIA	C06776876
2	10503260	29/05/2014	7,452,000.00	ING VYSYA BANK LIMITED	22, M G ROAD,BANGALORE, BANGALORE, KARNATAKA - 560001, INDIA	C06773832
3	10423069	25/04/2013 *	1,000,000,000.00	SREI INFRASTRUCTURE FINANCE LIMITED	VISHWAKARMA,86C,TOPSIA ROAD (SOUTH),, KOLKATA, WEST BENGAL - 700046, INDIA	B75095729
4	10373403	05/08/2012	46,167,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA	B56754609
5	10367793	02/07/2012	15,583,500.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA	B44474880
6	10311507	25/10/2011 *	2,801,000,000.00	RURAL ELECTRIFICATION CORPORATION LIMITED	CORE 4SCOPE COMPLEX, 7 LODI ROAD, NEW DELHI, DELHI - 110003, INDIA	B24340465
7	10276785	07/06/2011 *	2,000,000,000.00	CORPORATION BANK INDUSTRIAL FINANCE BRANCH	HINDUSTAN TIMES BUILDING 10TH, FLOOR, 18/20, K.G. MARG, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	B13904081
8	10250182	02/11/2010	1,500,000,000.00	SREI INFRASTRUCTURE FINANCE LIMITED	VISHWAKARMA,86C,TOPSIA ROAD (SOUTH),, KOLKATA, WEST BENGAL - 700046, INDIA	A98719842
9	10189099	21/08/2012 *	1,050,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA	B59987230

*Date of modification Charges

FIXED ASSETS:

· Land (Lease hold)

· Land (Free hold)

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Moulds and Dies

PRESS RELEASE:

PRAKASH INDUSTRIES REDEEMS USD 17.10 MILLION FCCB

October 16, 2014:  

Prakash Industries Ltd has informed BSE that the Company has redeemed the outstanding US $ 17.1 Million FCCB on October 16, 2014 which are maturing for redemption on October 17, 2014.

In this regard, the Company has issued a Press Release titled "Prakash Industries Redeems USD$ 17.10 Million FCCB".

204 COAL BLOCKS DE-ALLOCATED: IMPACT ON BANKING SECTOR

After 204 coal blocks get de-allocated, the repercussions are bound to hit other sectors. CNBC-TV18’s Latha Venkatesh shares details of how this move will impact the banking space.

There are ten companies that are severely impacted by the coal being de-allocated but they will not have a major issue paying interest because they are fairly big companies – like Hindalco Industries  , Sesa Sterlite  , Steel Authority of India ( SAIL  ), Tata Steel  , JSW Steel  , Reliance Power  , Jaiprakash Power Ventures  ,  JSW Energy  and Adani Power  . These companies do not have a debt servicing problem, bank exposure not included.

Then there are casualties of power and metal companies that will have a bearing on their own ability to pay back the interest and these include Jayaswal Neco  ,  Electrosteel Steels  – both of them are already restructured companies. Monnet Ispat  , Prakash Industries  , Sarda Energy  ,  Usha Martin  and among power GVK Power and Infra , KSK Energy Ventures  , CESC  , JP Associates , SKS Ispat, DB Power and RKM Power Gen.

The brokerages have given a total exposure of banks to the second set of companies where there could be an impact on their ability to pay interest.

Axis Bank, from the list above, has exposure to 17 companies of worth Rs 2,700 crore which is just 1.2 percent of its total loans.  ICICI Bank has a about Rs 3,000 crore exposure, about 0.9 percent of its total loans.

IndusInd Bank   has Rs 300 crore exposure to some of these companies and that’s 0.5 percent of its total loans.  Yes Bank  Rs 450 crore, 0.8 percent,  HDFC Bank  has the least, Rs 273 crore exposure to these various steel and power companies, just 0.1 percent of its loans.

It is the public sector banks that have a slightly higher exposure.  State Bank of India  has Rs 7800 crore exposure to these affected companies and that is 0.6 percent of its loans.  Bank of Baroda  Rs 2000 crore, 0.5 percent of its total loans,  Punjab National Bank  has Rs 4100 crore as its exposure, 1.2 percent of total loans.

Bank of India   has exposure of little less than Rs 2000 crore, 0.5 percent of its total loan book.  Union Bank  has given loans of around Rs 3000 crore, about 1.1 percent.

It is Rural Electrification Corporation ( REC  ), Power Finance Corporation Limited ( PFC ) which have a much larger exposure about 3 percent and 2 percent of their total loans to these companies.  IDFC  has Rs 825 crore about 1.5 percent.

But the impact on banks was noticed more in the stock markets simply because banks can also get affected by the power distribution companies. As coal gets expensive and the power companies increase the cost of power, the DISCOMs may or may not be able to pass on the cost to the consumers.

In such a situation the bank exposure to the power distribution companies also comes under a bit of a pressure but that cannot be estimated. This is why REC and PFC were still resilient in trade but the banks took it on their chin.

COAL BLOCKS ALLOCATION CASE TWO GOVT OFFICIALS MOVE COURT SEEKING ALTERATION OF CHARGES

Two government officials, facing prosecution in a coal blocks allocation scam case, on Monday moved a special court seeking alteration of charges framed against them.

The counsel for Executive Secretary Goutam Kumar Basak and Manager (F&A) Soumen Chatterjee of the Ministry of Steel's Joint Plant Committee, told the court that it should alter the charges framed against them as Delhi High Court has already quashed charges against Chhattisgarh-based Prakash Industries Ltd (PIL) and its director.

He argued that according to the high court order, charge of criminal conspiracy was not made out and the CBI should now explain as to how it would proceed with the trial.

"If the CBI still says there was conspiracy between these two accused (Basak and Chatterjee), they have to spell out before the court as to how this charge is made out," the defence counsel argued.

"Under the new facts and circumstances after the Delhi High Court's order, it would not be possible for this court to conduct trial against these two accused," the application seeking alteration of charges framed against them said. The court after hearing the arguments posted the matter for further arguments on November 25.

The court was hearing a case in which the high court on September 5 had quashed the charges of cheating, forgery and criminal conspiracy framed against PIL and its Director (Corporate Affairs) AK Chaturvedi.

The trial court had earlier framed charges of cheating, forgery and corruption against Goutam Kumar Basak and Soumen Chatterjee for allegedly giving a misleading report on the production capacity of PIL.

The Ministry of Steel's Joint Plant Committee was set up in 1964 by the government for formulating guidelines for production, allocation and pricing of iron and steel and is the only institution which is officially empowered by the Ministry of Steel to collect data on iron and steel industry.

SYNDICATE BANK BRIBERY CASE: COURT GRANTS BAIL TO 3 ACCUSED

New Delhi: A Delhi court on Saturday granted bail to Bhushan Steel Ltd vice chairman and managing director Neeraj Singal, CMD of Prakash Industries Ltd, Ved Prakash Agarwal and one other accused, arrested in connection with the Syndicate Bank bribery case.

Special Central Bureau of Investigation (CBI) judge Swarana Kanta Sharma enlarged Singal, Agarwal and co-accused Pankaj Bansal on bail and imposed several conditions on them including not to tamper with the evidence and not to delay the ongoing proceedings in the case.

The court also directed the three accused to surrender their passports before it.

Suspended CMD of Syndicate Bank S.K. Jain, Singal, Ved Prakash Agarwal, Vineet Godha, Pankaj Bansal, Purshottam Totlani and others were arrested by CBI in connection with the case.

The other arrested accused are currently in judicial custody till 30 September.

Singal, who was represented by advocate P.K. Dubey, was arrested by CBI on 7 August, hours after the court had issued a non-bailable warrant against him and Totlani.

They were apprehended in connection with two separate graft cases in which CBI had booked them under the Prevention of Corruption Act and for the charge of criminal conspiracy under the IPC.

On 2 August, CBI had arrested some of the accused in connection with the case and claimed to have recovered Rs.21 lakh in cash from Jain’s residence besides gold worth Rs.1.68 crore and documents of fixed deposits of up to Rs.63 lakh.

The agency has filed two cases against Jain, accusing him of receiving a bribe of Rs.50 lakh through conduits and abusing his official position to enhance the credit limits of some companies in violation of laid-down procedures.

SYNDICATE BANK FRAUD ANOTHER SHADOW ON PRAKASH INDUSTRIES

When S K Jain, chairman of Syndicate Bank, was held in a bribery case over the weekend, it was not the first time the CBI took the name of Prakash Industries in a scandal. The company came under investigation in the coal block allotment scam less than a year before.

CBI, late on Saturday evening, arrested Ved Prakash Agarwal, chairman and managing director of Prakash Industries, and Vipul Agarwal, a director, on the charge of offering bribes to get a credit facility from the public sector bank. CBI had on March 27, 2014, registered a First Information Report against his company for alleged irregularities in allocation of coal blocks between 2006-09.

Established in 1980, Prakash Industries runs an integrated steel plant at Champa in Chhattisgarh. It was allotted three coal blocks in the state, at Chotia, Madanpur & Fatehpur. The Chotia mines are already operational. Besides, it owns iron ore mines in Chhattisgarh and Odisha, and a 100-Mw captive power generation plant.

CBI alleged Prakash Industries had misrepresented facts about the net worth of the firm while applying for coal blocks. Agarwal is alleged to have used his political connections here. When his name appeared in the scam, his brother, Jaiprakash Agarwal, chairman and managing director of Surya Roshni, issued a statement disassociating himself from his brother. “We both brothers do separate businesses… I just came to know that the coal mines were allotted... based upon merit..” Incidentally, Jaiprakash Agarwal’s Surya Foundation is considered close to the Bharatiya Janata Party.

Despite facing tough times for a while now, a May 2014 press release of Prakash Industries said it had added capacities in its steel melting and ferro alloys divisions, “resulting in achieving record production levels in these” during 2013-14. In the finished steel segment, the company achieved “optimum level of production and capacity utilisation”. In fact, it reported net income from operations of Rs 2,597 crore for 2013-14 and 15 per cent improvement in operating earnings to Rs 379 crore. The profit after tax also increased to Rs 173 crore, against Rs 165 crore in FY13.

The company is currently setting up an additional sponge iron kiln, expected to be commissioned in March 2015. With fullstream operations of the steel and ferro alloy capacities, set up last year, along with fresh capacities coming up in the current year, the company said it expected significant growth in its production, sales volumes and operating earnings margins in FY15.

On the captive iron ore mines allotted in Chhattisgarh and Odisha, it said it was making all efforts to open these at the earliest, subsequent to which the company would not only become completely self-reliant but also get insulated against “any vagaries of the market”.

And, now, the Syndicate Bank bribery case has come as a new and severe blow to it.

Prakash Industries’ Q3FY15 PAT up by 81% to Rs. 630.000 crores

11th February, 2015, New Delhi: Prakash Industries Ltd (PIL), a business house with interests in steel & power today announced its results for the third quarter (Q3FY15).

The Profit after tax has grown by 81% to Rs.630.000 crores for Q3FY15 against Rs.350.00 crores in Q3FY14. The Company’s EBIDTA increased by 26% to Rs.1020.000 crores for Q3FY15 against Rs.810.000 crores in Q3FY14. The Net Sales/Income from operations of the company has grown by 2% for Q3FY15 to Rs.6870.000 crores against Rs.671.000 crores Q3FY14.

Particulars	Qtr. ended (Amt. In Rs. Crores)		Growth %
	31st December, 2014	31st December, 2013
SALES	687	671	2
EBDITA	102	81	26
PAT	63	35	81
EPS (Rs.)	4.65	2.57	81

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.62.25
UK Pound	1	Rs.96.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	SUM
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		44

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.