MIRA INFORM REPORT

Report No. :	347798
Report Date :	03.11.2015

IDENTIFICATION DETAILS

Name :	EASUN REYROLLE LIMITED (w.e.f. 30.09.1997)
Formerly Known As :	EASUN REYROLLE RELAYS AND DEVICES LIMITED
Registered Office :	“Temple Tower”, 6th Floor, No. 672, (Old No. 476), Anna Salai, Nandanam, Chennai – 600035, Tamilnadu
Tel. No.:	91-44-24346425 / 7608
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	29.08.1974
Com. Reg. No.:	18-006695
Capital Investment / Paid-up Capital :	Rs.61.588 Million
CIN No.: [Company Identification No.]	L31900TN1974PLC006695
IEC No.:	0488004527
TAN No.: [Tax Deduction & Collection Account No.]	CHEE03221B
PAN No.: [Permanent Account No.]	AAACE2032P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Electronic relays and contractors, numerical single function relays genesis, static relays and electro mechanical relays.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Status :	Moderate
Payment Behaviour :	Usually Correct
Litigation :	Exists
Comments :	Subject is an established company incorporated in the year 1974 having moderate track. The rating reflects modest financial risk profile marked by a sharp decline in the turnover and heavy loss incurred by the company during FY 2014 and FY 2015. However, trade relations are reported as fair. Business is active. Payment terms are reported as usually correct and as per commitment. The company can be considered for business dealings with some 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 – 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

NOT AVAILABLE

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 31-03-2015.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Praveen Hegde
Designation :	Company Secretary
Contact No.:	91-44-24346425
Date :	29.10.2015

LOCATIONS

Registered Office :	“Temple Tower”, 6th Floor, No. 672, (Old No. 476), Anna Salai, Nandanam, Chennai – 600035, Tamilnadu, India
Tel. No.:	91-44-24346425 / 7608
Fax No.:	91-44-24346435
E-Mail :	chennai@easunreyrolle.com techsupport@easunreyrolle.com
Website :	www.easunreyrolle.com
Corporate Office 1 / Development Centre :	Technology Development Centre 389, “Rasu Kumaki”, Hulimavu, Bannergatta Road, Bangalore - 560 076, Karnataka, India
Tel. No.:	91-80-67177000/ 7001
Fax No.:	91-80-67177002
Factory 1 / Central Marketing / Corporate Office 2 :	Hosur Plant – Unit I Plot No.98, SIPCOT Industrial Complex, Hosur – 635 126, Krishnagiri District, Tamilnadu, India
Tel. No.:	91-4344-401600/ 01/ 02
Fax No.:	91-4344-276397
E-Mail :	ctstp@easunreyrolle.com
Factory 2 :	Bangalore Plant – Unit II 17/3, Arakere Village, Bannergatta Road, Bangalore – 560 076, Karnataka, India
Tel. No.:	91-80-26581023/ 3268
Fax No.:	91-80-26580642
E-Mail :	blrworks@easunreyrolle.net
Factory 3 :	Global Manufacturing Facility Plot No.147/148 Harohalli Industrial Area, 2nd Phase Madamaranahalli Village Harohalli Hobli, Kanakapura Taluk, District – Ramanagara, Karnataka, India
Regional Sales / Marketing Offices :	Located At: Noida Kolkata Mumbai Nagpur  Bangalore Chennai Secunderabad

DIRECTORS

As on 31.03.2015

Name :	Mr. Hari Eswaran
Designation :	Chairman
Address :	5, Boad Club Road, Chennai – 600028, Tamilnadu, India
Date of Birth/Age :	78 Years
Qualification :	Institution of Electrical Engineering, U.K.
Name :	Mr. Raj H Eswaran
Designation :	Managing Director
Address :	5, Boad Club Road, Chennai – 600028, Tamilnadu, India
Name :	Mr. W S Jones
Designation :	Director
Address :	Jones Lanes Holding Pipers Lane, Great Kingshill Bucks, HP 15 6LW
Date of Birth/Age :	72 years
Qualification :	Royal Academy of Engineers and the Institution of Engineers and Technicians, UK.
Name :	Mr. Rakesh Garg
Designation :	Director
DIN No.:	00240379
Name :	Mr. J D N Sharma
Designation :	Director (up to 17.02.2015)
Name :	Mr. Raman M
Designation :	Director (up to 30.03.2015)
DIN No.:	01226770

KEY EXECUTIVES

Name :	Mr. P Chandrasekaran
Designation :	Chief Financial Officer
Name :	Praveen Hegde
Designation :	Company Secretary and Compliance Officer

SHAREHOLDING PATTERN

As on 30.09.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	614471	2.00
Bodies Corporate	10421061	33.84
Sub Total	11035532	35.84
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	75000	0.24
Sub Total	75000	0.24
Total shareholding of Promoter and Promoter Group (A)	11110532	36.08
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3766595	12.23
Foreign Institutional Investors	1535803	4.99
Any Others (Specify)	530866	1.72
Non Resident Indians	530866	1.72
Sub Total	5833264	18.94
(2) Non-Institutions
Bodies Corporate	1427361	4.64
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	8839478	28.71
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3583506	11.64
Sub Total	13850345	44.98
Total Public shareholding (B)	19683609	63.92
Total (A)+(B)	30794141	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)	30794141	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Electronic relays and contractors, numerical single function relays genesis, static relays and electro mechanical relays.
Products :	Electronic Relays and Contractors Numerical Single Function Relays Genesis Static Relays Electro Mechanical Relays
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit (30/60/90 Days)
Purchasing :	Cash and Credit (30/60/90 Days)

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

End Users and OEMs

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 :

400 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	NH - 7, Mookandapalli, Hosur, Chennai – 635126, Tamilnadu, India
Person Name (With Designation)	Not Divulged
Contact Number	91-4344-278980 (Number Ringing)
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

• Axis Bank Limited
• DBS Bank Limited
• Standard Chartered Bank
• State Bank of India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
Foreign Currency Term loans From Banks
Standard Chartered Bank - ECB	0.000	149.750
DBS Bank - ECB	93.750	135.473
External Commercial Borrowings	93.750	285.223
Rupee Term Loans From Bank
Axis Bank Limited	0.000	15.744
SHORT TERM BORROWING
From Banks
Cash Credits facilities availed	1293.242	1072.982
Buyers credit	0.000	35.937
Total	1386.992	1409.886

Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	48, Masilamani Road Balaji Nagar, Royapettah Chennai – 600014, Tamilnadu, India
Tel. No.:	91-44-28131128 / 28131138
Fax No.:	91-44-28131158
E-Mail :	brahmayya@vsnl.com
Auditors :
Name :	R Subramanian and Company Chartered Accountants
Address :	No.6, Krishnaswamy Iyer Avenue Luz, Mylapore, Chennai – 600004, Tamilnadu, India
Tel. No.:	91-44-24992261 / 24991347 / 24994231
Fax No.:	91-44-24991408
E-Mail :	rs_company@yahoo.com
Memberships :	Not Available
Collaborators :	Not Available
Related parties :	Easun Products of India Private Limited Sowraj Investment Private Limited ERL Phase Power Technologies Limited ERL International Pte Limited ERL Marketing International FZE ERL Thailand Private Limited Switchcraft Limited Switchcraft Gmbh ERL Pacific (EDS) Easun MR Tapchangers Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital:

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.2/- each	Rs.150.000 Million
5000000	Preference Shares	Rs.10/- each	Rs.50.000 Million
	Total		Rs.200.000 Million

Issued Capital:

No. of Shares	Type	Value	Amount
30794991	Equity Shares	Rs.2/- each	Rs.61.590 Million

Subscribed & Paid-up Capital

No. of Shares	Type	Value	Amount
30794141	Equity Shares	Rs.2/- each	Rs.61.588 Million

Reconciliation of number of shares

Particulars	As at 31st March 2015
	No. of Shares held	Rs. In Million
Balance at the beginning of the year	20807014	41.614
Add: shares issued during the year	9987127	19.974
Less: Shares bought back during the year	---	---
Balance at the end of the year	30794141	61.588

Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs 2. Per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

Details of equity shares held by shareholders holding more than 5% shares of the aggregate shares in the Company

Particulars	As at 31st March 2015
	No. of Shares held	% of Holding
Sowraj Investments Private Limited	5409954	17.57%
Easun Products of India Private Limited	3367557	10.94%
Easun Engineering Company Limited	1632500	5.30%
Sundaram Mutual Fund A/C Sundaram Smile Fund	1230942	4.00%
IDFC Premier Equity Fund	---	---

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	61.588	41.614	41.614
(b) Reserves & Surplus	1953.523	1824.635	2146.371
(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)	2015.111	1866.249	2187.985
(3) Non-Current Liabilities
(a) long-term borrowings	511.373	1016.652	925.545
(b) Deferred tax liabilities (Net)	0.000	42.977	42.977
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	13.072	12.443	13.203
Total Non-current Liabilities (3)	524.445	1072.072	981.725
(4) Current Liabilities
(a) Short term borrowings	1293.242	1108.919	912.508
(b) Trade payables	1965.673	1762.432	1552.285
(c) Other current liabilities	704.728	691.292	586.165
(d) Short-term provisions	13.732	15.734	17.896
Total Current Liabilities (4)	3977.375	3578.377	3068.854
TOTAL	6516.931	6516.698	6238.564
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	819.853	899.326	945.120
(ii) Intangible Assets	46.796	53.735	55.736
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1550.210	1550.210	1550.210
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	364.262	324.036	182.501
(e) Other Non-current assets	11.675	38.805	27.956
Total Non-Current Assets	2792.796	2866.112	2761.523
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	384.249	442.072	570.770
(c) Trade receivables	2842.841	2756.101	2455.795
(d) Cash and cash equivalents	150.529	184.753	180.031
(e) Short-term loans and advances	339.464	257.751	242.480
(f) Other current assets	7.052	9.909	27.965
Total Current Assets	3724.135	3650.586	3477.041
TOTAL	6516.931	6516.698	6238.564

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	624.142	1821.772	2204.455
	Other Income	69.633	21.607	242.222
	TOTAL	693.775	1843.379	2446.677
Less	EXPENSES
	Cost of Materials Consumed	416.196	1256.502	1675.536
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(9.888)	46.592	(13.181)
	Employees benefits expense	167.580	234.788	228.392
	Exceptional Items	60.072	36.904	0.000
	Other expenses	142.362	234.526	248.321
	TOTAL	776.322	1809.312	2139.068
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(82.547)	34.067	307.609
Less	FINANCIAL EXPENSES	259.927	274.926	215.920
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(342.474)	(240.859)	91.689
Less/ Add	DEPRECIATION/ AMORTISATION	73.442	80.181	71.732
	PROFIT/ (LOSS) BEFORE TAX	(415.916)	(321.040)	19.957
Less	TAX	(42.977)	0.000	18.728
	PROFIT/ (LOSS) AFTER TAX	(372.939)	(321.040)	1.229
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	84.427	77.401	52.864
	TOTAL EARNINGS	84.427	77.401	52.864
	IMPORTS
	Components and Spare parts including in transit	42.867	242.524	350.009
	TOTAL IMPORTS	42.867	242.524	350.009
	Earnings / (Loss) Per Share (Rs.)	(12.66)	(15.43)	0.06

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
CURRENT MATURITIES OF LONG TERM DEBT
Foreign Currency Term loans from Banks
Standard Chartered - ECB	234.375	224.625	137.033
DBS Bank - ECB	140.625	101.605	67.736
Rupee Term Loans from Banks
Axis Bank Limited	15.856	15.832	17.273
Standard Chartered Bank	0.000	16.000	0.000
Current Maturities of Hire Purchase Loans	0.000	0.284	0.287
Total	390.856	358.346	222.329
CASH GENERATED FROM OPERATIONS	(25.336)	148.808	349.505
NET CASH FROM OPERATING ACTIVITIES	(29.756)	140.397	340.937

QUARTERLY RESULTS

Particulars	30.06.2015
	1^st Quarter
Net Sales	123.800
Total Expenditure	145.300
PBIDT (Excl OI)	(21.500)
Other Income	0.000
Operating Profit	(21.500)
Interest	57.900
Exceptional Items	(18.600)
PBDT	(98.000)
Depreciation	17.300
Profit Before Tax	(115.300)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(115.300)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(115.300)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	(59.75)	(17.62)	0.06
Operating Profit Margin (PBDIT / Sales)	(%)	(13.23)	1.87	13.95
Return on Total Assets (PBT/Total Assets}	(%)	(8.37)	(6.46)	0.43
Return on Investment (ROI) (PBT/Networth)		(0.21)	(0.17)	0.01
Debt Equity Ratio (Total Debt/Networth)		1.09	1.33	0.94
Current Ratio (Current Asset/Current Liability)		0.94	1.02	1.13

STOCK PRICES

Face Value	Rs.2.00/-
Market Value	Rs.39.35/-

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	41.614	41.614	61.588
Reserves & Surplus	2146.371	1824.635	1953.523
Net worth	2187.985	1866.249	2015.111
long-term borrowings	925.545	1016.652	511.373
Short term borrowings	912.508	1108.919	1293.242
Current Maturities of Long Term Debt	222.329	358.346	390.856
Total borrowings	2060.382	2483.917	2195.471
Debt/Equity ratio	0.942	1.331	1.090

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	2204.455	1821.772	624.142
		(17.360)	(65.740)

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	2204.455	1821.772	624.142
Profit	1.229	(321.040)	(372.939)
	0.06%	(17.62%)	(59.75%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	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	No
32	Litigations that the firm/promoter involved in	Yes
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

Madras High Court

Case Status Information System

Case Status :

Pending

Status Of :

CIVIL SUITS  343  Of  2015

Litigants :

PKM METAL BUILDINGS Vs.   EASUN REYROLLE LIMITED

Pet's Adv :

R.ARUMUGAM

Res's Adv :

S.ELAMBHARATHI

Last Date of Hearing :

---

Next / Final Date of Hearing :

Friday, October 16, 2015

Case Updated On :

Monday, October 19, 2015

Category :

Money Suits

Connected Application(s)

A

7048

2015

Connected Matter(s)

No Connected Cases

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
Intercorporate Deposits	417.623	715.685
Total	417.623	715.685

INDEX OF CHARGES

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10435675	06/09/2013 *	300,000,000.00	CANARA BANK	M M REDDY COMPLEX, 1ST FLOOR, OLD BANGALORE ROAD, HOSUR - 635109, TAMILNADU, INDIA	B85653152
2	10411981	11/03/2013	120,000,000.00	STANDARD CHARTERED BANK	NO. 19, 2ND FLOOR, RAJAJI SALAI, CHENNAI - 600001, TAMILNADU, INDIA	B70812136
3	10288818	14/03/2012 *	340,400,000.00	DBS BANK LIMITED	806, ANNA SALAI, CHENNAI - 600002, TAMILNADU INDIA	B37262557
4	10282333	19/06/2013 *	300,000,000.00	STANDARD CHARTERED BANK	19, RAJAJI SALAI, CHENNAI - 600001, TAMILNADU, INDIA	B81535213
5	10282268	19/06/2013 *	435,000,000.00	STANDARD CHARTERED BANK	19, RAJAJI SALAI, CHENNAI - 600001, TAMILNADU, INDIA	B81537938
6	10262030	22/12/2014 *	425,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, EXPRESS BUILDING, SECOND FLOOR, NO.1, QUEEN'S ROAD, BANGALORE - 560001, KARNATAKA , INDIA	C39680426
7	10025386	25/11/2013 *	2,188,800,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, NO.65, ST.MARK'S ROAD, BANGALORE - 560001, KARNATAKA, INDIA	B91090126
8	90289095	22/09/2003	7,453,000.00	ASSISTANT COMMISSIONER OF COMMERCIAL TAXES	ZONE VI, CHENNAI - 600006, TAMILNADU, INDIA	-
9	90287605	10/12/2004 *	255,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, ST. MARK’S ROAD, BANGALORE - 560001, KARNATAKA, INDIA	-
10	90290225	30/06/2005 *	255,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH NO65 ST MARKS ROAD, BANGALORE, TAMILNADU, INDIA	-

* Date of charge modification

FUND RAISING - EQUITY – RIGHTS ISSUE

During the year, the Company successfully placed 9987127 equity shares of Rs.2 each at a price of Rs.59 aggregating to Rs.589.200 Million to existing shareholders on rights basis in the Ratio of 12:25.

The proceeds received through Rights issue were utilised for the purpose for which it was raised.

Consequent to the above, the paid up value of the equity share capital of the Company stands increased from Rs.41.600 Million to 61.500 Million.

MANAGEMENT DISCUSSIONS AND ANALYSIS:

Industry structure and developments

The industry is structured in major two segments – mainly power generation and Transmission and Distribution.

The delay in execution of power and T&D projects in India leads to huge congestion in T&D division. Few states in India are investing in the T&D infrastructure. The industry is awaiting implementation of reforms as most of the Companies continue to struggle due to highly leveraged Companies Balance sheets. Due to the slow economic growth in the past years and also increase in the NPA’s in the banking industry forcing the bankers to restrict their exposure in the T&D sector.

At present the power sector did not grow due to improper liberalization as expected.

Sales and cash flows of their Company were impacted due to the above said factors.

Opportunities and Threats

India is the world’s second fast growing major economy. In the next two decades, current size of economy of USD five trillion is expected to grow four to five times as per various studies and estimates. Also India is the second most populous country in the world, with over 1.26 billion people. All the factors indicate potential for high growth of power demand consequently high market demand for T&D products & solutions.

Developers of Power Plants have been facing numerous constraints like coal/gas allocation, environmental clearance, land acquisition, financing and funds tie-ups etc., for the last 4 years. This has resulted in only very few new projects coming up and the demand for T&D products considerably comes down.

The declined growth of the core industries has remained a drag on industrial production. Eight core industries consisting 38% in Index of Industrial production have decelerated further after registering only 3.59%, the lowest in the last five years, due to a decline in crude oil, natural gas production and steel.

Many Indian Corporate are highly leveraged there financial capacities due to new investment. Both Central and state Government should support the infrastructural investment and growth.

Segment–wise or product-wise performance

Continuous product development is the cornerstone of ERL for meeting the challenges in today’s environment. ERL places strong emphasis on innovation and development. The R&D efforts of the company are not only aimed at improving the performance and efficiency of the existing products, but also developing new products using state-of-the-art technologies. At present, ERL is concentrating in protection and automation business, which is the core strength.

Outlook

The Government focus on power and T&D sector is very high. The New NDA Government at center is putting efforts to drive economic growth at 9% rate. The outcome of new price policy for gas allocation and cancellation of old coal mines with new auction system is expected in the coming years.

The Government is also focusing on private participation in the transmission sector, tariff based competitive bidding projects, which helps the industry in coming years.

The coming year is expected moderate growth in depends upon the implementation of reform process.

ERL has significant presence in the field of Power Protection & Automation in India and abroad with a wide range of products and solutions. The business outlook is very positive.

To maintain and enhance its presence in the T&D segment, ERL has taken initiatives for improving the performance parameters of existing products.

Discussion on financial performance with respect to operational performance

On a standalone basis, the Company achieved revenue from operations of Rs.624.142 Million and EBIT of Rs (95.917) Million as against Rs.1821.772 Million and Rs (9.215) Million respectively in the previous year. Net loss for the year is Rs.372.933 Million as compared to net loss of Rs.321.040 Million in the previous year. The increase in loss during the year compared to previous year is primarily due to slow collection from the projects and the Government sector undertakings, the working capital cycle got affected due to the lack of working capital the existing orders got back log and delayed in executions. Hence the company turnover not achieved the expected break even to absorb the admin and other overheads.

CONTINGENT LIABILITIES

(Rs. In Million)

Particulars	31.03.2015	31.03.2014
Letters of Credit opened by Bank for purchase of raw materials and components	211.130	132.174
Counter Guarantee given to bankers in respect of Guarantees given by them	1138.166	1518.660
Counter Guarantee given to bankers in respect of Standby LC given by them	0.000	37.713
Bonds executed in favour of President of India for import of material at concessional rate of duty	0.895	0.895
Sales effected under CST - liability towards submission of C Forms	74.560	176.693

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE, 2015

(Rs. In Million)

Particulars	3 Months Ended 30.06.2015
	(Unaudited)
Income from operations
Net sales/ Income from operation (net of excise duty)	113.500
Other operating income	10.300
Total income from Operations(net)	123.800
Expenditure
Cost of material consumed	67.300
Changes in inventories of finished goods, work-in-progress and stock-in-trade	5.900
Employees benefit expenses	37.400
Depreciation and amortization expenses	17.300
Other expenditure	34.700
Total expenses	162.600
Profit from operations before other income and financial costs	(38.800)
Other income	0.000
Profit from ordinary activities before finance costs	(38.800)
Finance costs	57.900
Profit from ordinary activities after finance costs but before Exceptional Items	(96.700)
Exceptional Items	(18.600)
Profit from ordinary activities before tax Expense:	(115.300)
Tax expenses	0.000
Net Profit / (Loss) from ordinary activities after tax	(115.300)
Extraordinary Items	0.000
Net Profit/(Loss) for the Period	(115.300)
Paid-up equity share capital (Nominal value Rs.2/- per share)	61.600
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	---
Earnings per share (before extraordinary items) of Rs.2/- each) (not annualized):
Basic and diluted	(3.74)
Earnings per share (after extraordinary items)
Basic and diluted	(3.74)
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	19683609
- Percentage of shareholding	63.92%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	NIL
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	NIL
Percentage of shares (as a % of total share capital of the company)	NIL
b) Non Encumbered
Number of shares	11110532
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100%
Percentage of shares (as a % of total share capital of the company)	36.08%
B. Investor Complaints
Pending at the beginning of the quarter	---
Receiving during the quarter	---
Disposed of during the quarter	---
Remaining unreserved at the end of the quarter	---

Note:

1. The above Financial Results were reviewed and recommended by the Audit Committee and approved by the Board of Directors at its Meeting held on 14th August, 2015.

2. The Company is engaged in Power Transmission and Distribution segment and same is being reported.

3. Other operating income includes gain on cancellation of Forex forward cover of Rs 53.457 Million for Q1 of FY-14-15.

4. The figures have been re-grouped wherever necessary to conform to current period's classification.

FIXED ASSETS

Tangible Assets

• Land
• Building
• Plant and Machinery
• Electrical Installation
• Office Equipment
• Furniture
• Vehicles
• Computer

Intangible Assets

• Technology Know-how
• Non-compete fees
• Intangible Assets
• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration:

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

3] Asset Declaration:

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

4] Record on Financial Crime:

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws:

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government:

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

9] Compensation Package:

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

10] Press Report:

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.48
UK Pound	1	Rs.101.06
Euro	1	Rs.72.22

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	DIV
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	1
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		28

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.