MIRA INFORM REPORT

Report No. :	349767
Report Date :	14.11.2015

IDENTIFICATION DETAILS

Name :	PENNAR INDUSTRIES LIMITED (w.e.f. 30.09.1998)
Formerly Known As :	PENNAR STEELS LIMITED
Registered Office :	Floor No. 3, DHFLVC Silicon Towers, Kondapur, Hyderabad – 500084, Telangana
Tel. No.:	91-40-40061621/2/3/4
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	08.08.1975
Com. Reg. No.:	36-001919
Capital Investment / Paid-up Capital :	Rs.629.500 Million
CIN No.: [Company Identification No.]	L27109AP1975PLC001919
IEC No.:	0990004317
TAN No.: [Tax Deduction & Collection Account No.]	HYDP00081E
PAN No.: [Permanent Account No.]	AABC93074H
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of steel and stainless steel, solar module mounting solution, cold rolled steel strips, ESP electrodes.
No. of Employees :	1380 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject was incorporated in August 1975, it is having a fine track record. Overall General financial position of the company seems to be decent. The rating takes into consideration established track record of the company, experienced management team and reputed clientele base. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Note: Subject has been found under RBI Defaulter’s list the name of credit Grantors is Andhra Bank and the amount charged is Rs. 171.300 Million dated 31.03.2005 and latest updates about the same are not available.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long terms Bank facilities= A
Rating Explanation	Have adequate of safety and carry low credit risk
Date	29.01.2015

Rating Agency Name	CARE
Rating	Short terms Bank facilities= A1
Rating Explanation	Have very strong degree of safety and carry lowest credit risk.
Date	29.01.2015

RBI DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same areas under:

Borrowers’ Name :	Pennar Industries Limited
Address :	1-10-75/1/1-6, Sardar Patel Road, Begumpet, Hyderabad, Telangana , India
Name of Individual :	Anantha Reddy C. Rangamani Laximinarayan Nrupender Rao P Bhaskar Rao
Name of Credit Grantors / Bank & Branch:	Andhra Bank, Somajiguda, Hyderabad
Amount (Rs. In Millions) :	Rs. 171.300 Million

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 DENIED

Management Non Co-operative (91-40-40061621)

LOCATIONS

Registered Office :	Floor No. 3, DHFLVC Silicon Towers, Kondapur, Hyderabad – 500084, Telangana , India
Tel. No.:	91-40-40061621/2/3/4
Fax No.:	91-40-40061618
E-Mail :	psteel@hdl.vsnl.net.in contact@pennarindia.com pilhyd@bsnl.in pilhyd@sancharnet.in corporatecommunications@pennarindia.com
Website :	www.pennarindia.com
Area :	3000 Sq. ft.
Location :	Owned
Locality :	Commercial
Corporate Office / Factory 1:	Patancheru Unit IDA, Patancheru - 502 319, Medak District, Telangana , India
Tel. No.:	91-8455-242184 To 242193
Fax No.:	91-8455-242424 / 242161
E-Mail :	contact@pennarindia.com pilhyd@bsnl.in
Area:	43 Acres
Factory 2 :	Isnapur Unit Isnapur Village - 502 307, Medak (District), Telangana , India
Tel. No.:	91-8455-226615 / 17
Fax No.:	91-8455-226412
Area:	26 Acres
Factory 3 :	Tarapur Unit J-72, MIDC, Tarapur – 401506, Maharashtra, India
Tel. No.:	91-2525-272517 / 609 / 429
Fax No.:	91-2525 272536
E-Mail :	pennar@sancharnet.in
Area:	5 Acres
Factory 4 :	Chennai Unit Kannigaipair Village, Periyapalem Main Road, Tiruvellore District Tamilnadu – 601102, India
Tel. No.:	91-44-27629042 / 27601009 / 27601010
Fax No.:	91-44-2762 9298
E-Mail :	pilchn@pennarindia.com
Area:	5 Acres
Factory 5 :	Hosur Unit 43, SIDCO Industrial Estate, II Phase, Hosur, Tamilnadu, India
Branches:	Located At: · Bangalore · Chennai · Coimbatore · Faridabad · Hosur · Hyderabad · Indore · Kolkata · Mumbai · Pune · Delhi

DIRECTORS

As on 31.03.2015

Name :	Mr. Nrupender Rao
Designation :	Chairman
Name :	Mr. Aditya Rao
Designation :	Vice Chairman and Managing Director
Name :	Mr. Ravi Chachra
Designation :	Director
Name :	Mr. B Kamalaker Rao
Designation :	Director
Name :	Mr. Manish Sabharwal
Designation :	Director
Name :	Mr. J Ramu Rao
Designation :	Director
Name :	Mr. Vishal Sood
Designation :	Director
Name :	Mr. Varun Chawla
Designation :	Director
Name :	Ms. Sita Vanka
Designation :	Director
Name :	Mr. K Lavanya Kumar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Mirza Mohammed Ali Baig
Designation :	Company Secretary and Compliance Officer
Name :	Mr. J S Krishna Prasad
Designation :	Chief Financial Officer

SHAREHOLDING PATTERN

As on 30.09.2015

Category of Shareholder	No. of Shares	% of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	22803129	18.95
Bodies Corporate	20953811	17.41
Sub Total	43756940	36.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	43756940	36.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5273777	4.38
Financial Institutions / Banks	7717565	6.41
Foreign Institutional Investors	12448501	10.34
Qualified Foreign Investor	1434489	1.19
Sub Total	26874332	22.33
(2) Non-Institutions
Bodies Corporate	8696376	7.23
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	21461493	17.83
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	19560373	16.25
Sub Total	49718242	41.31
Total Public shareholding (B)	76592574	63.64
Total (A)+(B)	120349514	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)	120349514	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of steel and stainless steel, solar module mounting solution, cold rolled steel strips, ESP electrodes.
Products :	Steel And Stainless Steel Solar Module Mounting Solution Cold Rolled Steel Strips
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

NCC

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

Customers :

End Users and OEMs

• ABB Limited

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

No. of Employees :

1380 (Approximately)

Bankers :

• State Bank of Patiala
• Axis Bank Limited

Bank Name	State Bank of India
Branch	Industrial Finance Branch
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

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
From Banks - Secured
Axis Bank Limited	218.100	190.600
From NBFC - Secured
Kotak Mahindra Prime Ltd (Vehicle loans)	4.600	7.000
SHORT TERM BORROWING
Cash Credit from Banks
State Bank of India	633.700	431.300
Axis Bank Limited	195.500	194.800
State Bank of Patiala	109.900	78.700
Total	1161.800	902.400

Statutory Auditors :
Name :	Rambabu and Company Chartered Accountants
Address :	31, Pancom Chambers, 6-3-1090/1/A, Rajbhavan Road, Somajiguda, Hyderabad – 500003, Telangana, India
Internal Auditors :
Name :	R Krishna and Associates Chartered Accountants
Address :	Flat No.501, Indra Dhanush Pavani Estates, Road No.2, Banjara Hills, Hyderabad – 500034, Telangana, India
Cost Auditors :
Name :	DZR and Company Cost and Management Accountants
Address :	104, Praveen Residency, H. No. 2-2-14/2/104, Durgabai Deshmukh Colony, Hyderabad – 500007, Telangana, India
Memberships :	--
Collaborators :	--
Subsidiaries :	Pennar Engineered Building Systems Limited Pennar Enviro Limited
Significant Influence :	Saven Technologies Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.5/- each	Rs. 750.000Million
500000	Series - A : Cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 50.000 Million
40000000	Series - B : Cumulative Redeemable Preference Shares	Rs.5/- each	RS. 200.000 Million
	Total		Rs. 1000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
120349514	Equity Shares	Rs.5/- each	Rs. 601.700 Million
16649119	Cumulative redeemable Preference Shares	Rs.1.67/- each	Rs. 27.800 Million
	Total		Rs. 629.500 Million

All Equity Shares issued by the company carry equal voting and participatory rights

Pursuant to board of directors approval for buy back of equity shares under section 77 A of the companies act, 1956, the company has bought back 111896 equity Shares of Rs.5/- each through open market for an aggregate amount of Rs.2.600 million (Rs.2.597 million). Out of the said amount, an amount of Rs.2.000 million (Rs.2.037 million) debited to share premium account and the balance amount of Rs.0.600 million (Rs.0.559 million) has been reduced from equity share capital. 61,27,965 equity shares out of the issued, subscribed and paid up capital were bought back and extinguished in the last Six years out of which 1,11,896 pertains to current Financial year.

The details of shareholders holding more than 5% shares:

Name of the share holder	As at 31st March 2015
	No of Shares	% held
Thapati Trading Private Limited	19379811	16.10
Saif Advisors Mauritius Limited A/C Saif India IV	12138080	10.09
Eight Capital Master Fund Limited	7090157	5.89

The reconciliation of the no of equity shares outstanding is set out below:

Particulars	As at 31st March, 2015 No. of shares
Equity Shares at the beginning of the year	120461410
Add/(Less) : Shares bought back and extinguished	111896
Equity Shares at the end of the year	120349514

During the year 16649119 Cumulative redeemable preference shares were partially redeemed @ Rs.1.67 per share amounting to Rs.27.800 million and the balance of Rs.1.67 per Share will be redeemable during Financial Year 2015-16.

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	629.500	657.900	697.900
(b) Reserves & Surplus	2711.900	2539.000	2466.400
(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)	3341.400	3196.900	3164.300
(3) Non-Current Liabilities
(a) long-term borrowings	453.100	428.000	324.200
(b) Deferred tax liabilities (Net)	229.800	157.700	132.700
(c) Other long term liabilities	0.000	0.000	9.100
(d) long-term provisions	10.300	8.900	0.000
Total Non-current Liabilities (3)	693.200	594.600	466.000
(4) Current Liabilities
(a) Short term borrowings	939.100	704.800	733.000
(b) Trade payables	1011.400	1030.800	619.600
(c) Other current liabilities	347.800	342.500	221.100
(d) Short-term provisions	2.800	2.800	145.900
Total Current Liabilities (4)	2301.100	2080.900	1719.600
TOTAL	6335.700	5872.400	5349.900
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2023.900	1903.500	1853.700
(ii) Intangible Assets	124.000	130.300	13.000
(iii) Capital work-in-progress	5.400	42.200	7.700
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	227.700	227.700	227.700
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11.200	57.000	57.600
(e) Other Non-current assets	41.700	47.500	40.400
Total Non-Current Assets	2433.900	2408.200	2200.100
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1316.800	1212.100	1193.700
(c) Trade receivables	2266.200	1885.300	1744.100
(d) Cash and cash equivalents	100.800	124.900	104.500
(e) Short-term loans and advances	170.300	202.300	85.600
(f) Other current assets	47.700	39.600	21.900
Total Current Assets	3901.800	3464.200	3149.800
TOTAL	6335.700	5872.400	5349.900

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	8282.100	7358.400	8480.600
	Other Income	11.500	20.900	8.700
	TOTAL (A)	8293.600	7379.300	8489.300
Less	EXPENSES
	Cost of Materials Consumed	6038.100	5242.700	6100.500
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(16.100)	(11.400)	6.500
	Employees benefits expense	435.500	447.400	421.200
	Other expenses	373.600	342.000	340.800
	Manufacturing Expenses	758.700	827.700	803.100
	TOTAL (B)	7589.800	6848.400	7672.100
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	703.800	530.900	817.200
Less	FINANCIAL EXPENSES (D)	260.600	184.700	197.100
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	443.200	346.200	620.100
Less	DEPRECIATION/ AMORTISATION (F)	109.500	152.800	149.200
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	333.700	193.400	470.900
Less	TAX (H)	120.400	67.600	159.500
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	213.300	125.800	311.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	1527.300	1401.500	1256.400
Less	APPROPRIATIONS
	Transfer to General Reserve	0.000	0.000	23.600
	Dividend	0.000	0.000	122.000
	Tax on Dividend	0.000	0.000	20.700
	Total (M)	0.000	0.000	166.300
	Balance Carried to the B/S	1740.600	1527.300	1401.500
	FOB VALUE OF EXPORTS	39.700	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)	1.77	1.04	2.55

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	114.300	58.100	40.100
Cash generated from operations	219.200	724.600	697.900
Net cash from operating activities	216.700	682.500	538.900

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	2.58	1.71	3.67
Operating Profit Margin (PBIDT/Sales)	(%)	8.50	7.21	9.64
Return on Total Assets (PBT/Total Assets}	(%)	5.47	3.45	9.21
Return on Investment (ROI) (PBT/Networth)		0.10	0.06	0.15
Debt Equity Ratio (Total Debt /Networth)		0.45	0.37	0.35
Current Ratio (Current Asset/Current Liability)		1.70	1.66	1.83

STOCK PRICES

Face Value	Rs.5
Market Value	Rs.48.85

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	697.900	657.900	629.500
Reserves & Surplus	2466.400	2539.000	2711.900
Net worth	3164.300	3196.900	3341.400
long-term borrowings	324.200	428.000	453.100
Short term borrowings	733.000	704.800	939.100
Current Maturities of Long term debt	40.100	58.100	114.300
Total borrowings	1097.300	1190.900	1506.500
Debt/Equity ratio	0.347	0.373	0.451

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	8480.600	7358.400	8282.100
		(13.233)	12.553

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	8480.600	7358.400	8282.100
Profit	311.400	125.800	213.300
	3.67%	1.71%	2.58%

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	Yes
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	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	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

Subject is a multi-location, multi-product company manufacturing Cold Rolled Steel Strips, Precision Tubes, Cold Rolled Formed Sections, Electro Static Precipitators, Profiles, Railway Wagons and Coach Components, Press Steel Components and Road Safety Systems. Subject has manufacturing facilities at Patancheru and Isnapur (Telangana), Chennai and Hosur (Tamilnadu) Tarapur (Maharashtra).

RESULT OF OPERATIONS AND THE STATE OF COMPANY’S AFFAIRS

The company has added several new products this year and progressively moved to higher margins in each vertical. The company successfully widened the customer base and developed sales in new geographies. The Consolidated gross sales of the company grew by 11.8% from Rs.12906.900 million to Rs.14424.200 million and the Consolidated Net Profit increased by 38.4% compared to the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMIC OVERVIEW

The global economy continued to expand in 2014 at a moderate (though uneven) pace as countries remained saddled with unfinished post-crisis adjustments. Global recovery was hampered by new challenges, including unexpected shocks comprising geopolitical conflicts in various geographies. The growth of World Gross Product was estimated at 2.6% in 2014, marginally better 2.5% in 2013, but lower than the projected 2.9%

High-income countries are likely to see a growth of 2.2% in 2015-17, up from 1.8% in 2014 on the back of gradually recovering labour markets, ebbing fiscal consolidation and low financing costs. As domestic headwinds, which held growth back in developing countries, ease and recovery in high income countries strengthen, growth is projected to accelerate from 4.4% in 2014 to 4.8% in 2015 and 5.4% by 2017

INDIAN ECONOMIC OVERVIEW

The Indian economy is the world’s seventh-largest in terms of nominal GDP and the third-largest in terms of purchasing power parity. The full-year GDP growth for the fiscal year ending March 2015 settled at 7.3%, up from 6.9% in 2013-14, but marginally lower than the estimated 7.4%. India overtook China to become the world’s fastest growing economy by reporting 7.5% GDP growth for the January-March quarter, ahead of China’s 7% growth during the same quarter.

The Index of Industrial Production registered a growth of 2.8% in overall industrial production during 2014- 15. The production of the mining, manufacturing and the power sectors increased by 1.4%, 2.3% and 8.4% respectively during 2014-15. India’s current account deficit declined to 1.3% of GDP and is expected to narrow to 1% of GDP during the next fiscal, meaning that capital inflows would be more than that needed to finance the current account deficit, adding to reserves, putting an upward pressure on the rupee and interest rates.

BUSINESS OVERVIEW

Subject has reported growing orders in the last quarter and is expecting high growth for this business division, going ahead. The Company added several new large customers such as Cairn India, Sogex Oman India Limited and HDO and received repeat orders from several marquee clients including Hetero Drugs, United Spirits, Larsen and Toubro, among others. The Company received Food Grade Certification for the water treatment chemicals.

Subject decided to focus on securing annualised maintenance contracts by adding additional services, thereby ensuring steady incomes. For its packaging business, the Company manufactured bio-toilets with inbuilt DRDO digesters. The demand for bio-toilets has seen a sharp spike owing to the relative ease-of-installation, zero power and water requirement.

During the year subject focused on converting its existing EPC order book as the markets stayed subdued during the first half of the year having begun the 2014-15 fiscal with an order book of Rs.360.000 million, the Company succeeded in raking in new orders and closed with an order book of Rs.541.300 million. The first quarter of FY 16 witnessed large number of enquiries, reflecting improved market sentiments.

What makes subject different is that it has exhibited an entrenched ability to optimise maintenance and opex costs for its customers. The result is that subject emerged as player with the fastest-growing order book in the industry. Subject expects to scale its revenues from Rs.300.000 million in 2014-15 to Rs.700.000 million in 2015-16. Revenues increased by 68% from Rs.174.800 million in 2013-14 to Rs.294.300 million EBIDTA grew by 171% from Rs.6.900 million in 2013-14 to Rs.18.700 million Order book stood at Rs.541.300 million as on March 31, 2015

OUTLOOK

Subject expects high growth to continue in this business segment over the next financial year and as such has set aggressive targets for itself. Subject is growing its focus to serve effluent treatment needs for abattoirs. Subject has also responded to the effluent management needs of ailing paper mills, by offering proprietary technological solutions to address their needs. Also the latest water policy amendment specifies that surface water cannot be utilised for industrial purpose which will increase the demand for the services rendered by players like subject.

LITIGATIONS DETAILS

CRLP 7365/2013 CRLPSR 23837/2013 CASE IS: PENDING

PETTIONER	M/S. SILICON VALLEY AUTO COMPONENTS PVT. LTD. AND 2 OTHERS	RESPONDENT	V/S M/S. PENNAR INDUSTRIES LTD. AND ANOTHER
Pet’s Adv:-	PRADYUMNA KUMAR REDDY	Resp. Adv.:	PUBLIC PROSECUTOR
SUBJECT :	U/s. 482 Cr.p.c. under sec. 138 and 142	DISTRICT	HYDERABAD
FILLING DATE :	12.07.2013	POSTING STAGE :	FOR ADMISSION
REG. DATE	12.07.2013	LISTING DATE	01.06.2015
STATUS	-----	HON’BLE JUDGE (S)	B.SIVA SANKARA RAO

UNSECURED LOAN

(Rs.in Million)

Particulars	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
Sales Tax Deferment Loan	230.400	230.400
Total	230.400	230.400

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2015	31.03.2014
Bank Guarantees	91.500	103.800
Corporate Guarantee given for loans taken by subsidiary	2306.800	1847.300
Claims by Customs & Sales Tax	21.000	21.000
Estimated amount of contracts remaining to be executed on capital account and not provided for	5.500	98.300
LC/Bills Discounted	18.500	34.700

STATEMENT OF STANDALONE UNAUDITED FINANCAIL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2015

(Rs. In Million)

Sr. No	Particulars		Standalone
			30.06.2015
			Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		1849.400
	b. Other Operating Income		1.800
	Total Income from Operations (Net)		1851.200
2	Expenditure
	a. Cost of material Consumed		1280.800
	b. Purchase of Stock-in trade		0.000
	c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade		8.200
	d. Employees Benefit Expenses		118.800
	e. Depreciation and Amortisation Expenses		28.000
	f. Other expenses		281.700
	Total Expenses		1717.500
5	Profit from ordinary activities before finance cost & exceptional items		133.700
6	Finance Costs		61.100
7	Profit from ordinary activities after finance costs & exceptional items		72.600
8	Exceptional items		--
9	Profit from ordinary activities before tax		72.600
10	Tax Expense
	- Income Tax		21.200
	- Deferred Tax		13.300
11	Net Profit from ordinary activity after tax		38.100
12	Extraordinary Items		--
13	Net Profit After Tax		38.100
14	Paid-up equity share capital (face value of Rs.10 per share)		6017
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year		--
16	Earning Per Share (of Rs.10 each) (not annualized)
	Basic and Diluted		0.32
A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	76592574
		- Percentage of shareholding	63.64%
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	3250000
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	7.43%
		- Percentage of shareholding (as a % of the total share capital of the company)	2.70%
		b) Non-encumbered
		- No. of shares	40506940
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	92.57%
		- Percentage of shareholding (as a % of the total share capital of the company)	33.66%

	Particulars	Quarter ended 30.06.2015
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	9
	Disposed off during the quarter	9
	Remaining unresolved at the end of the quarter	Nil

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10511889	21/07/2014	150,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, NO:6-3-879-B, IST FLOOR,  G.PULLAREDDY BUILDING, GREENLANDS, BEGUMPET, HYDERABAD, TELANGANA - 500016, INDIA	C14092449
2	10470557	16/03/2015 *	300,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH,6-3-879/B, FIRST FLOOR, G.PULLAREDDY BUILDING,GREENLANDS,BEGUMPET ROAD, HYDERABAD, TELANGANA - 500016, INDIA	C50556133
3	10304884	07/09/2011	150,000,000.00	AXIS BANK LIMITED	5-2-183/184, 8751(OLD),, III RD FLOOR, RP ROAD, SECUNDERABAD, TELANGANA - 500003, INDIA	B19908268
4	10222431	05/06/2010	895,200,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RAJ BHAVAN ROAD, SOMAJIGUDA, HYDERABAD, TELANGANA - 500082, INDIA	A87232930
5	10157652	18/11/2013 *	1,600,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RAJBHAWAN ROAD, SOMAJIGUDA, HYDERABAD, TELANGANA - 500082, INDIA	B91573154
6	10152088	02/08/2010 *	100,000,000.00	AXIS BANK LIMITED	5-2-183/184, 8751(OLD), III RD FLOOR, RP ROAD, SECUNDERABAD, TELANGANA - 500003, INDIA	A95190559
7	10058235	25/08/2008 *	1,200,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA,, RAJBHAVAN  ROAD, HYDERABAD, TELANGANA - 500004, INDIA	A45249216
8	90257093	11/06/2001	1,572,300,000.00	STATE BANK OF INDIA	IFB; SOMAJIGUDA, HYDERABAD, TELANGANA - 50008 2, INDIA	-
9	90258220	21/09/1996	540,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD,  TELANGANA - 500082, INDIA	-
10	90257840	03/09/1999 *	284,650,000.00	STATE BANK OF INDIA	IDB, SOMAJIGUDA, HYDERABAD, TELANGANA - 500082, INDIA	-

*Date of charge modification

FIXED ASSETS

· Freehold Land

· Roads

· Buildings

· Plant and Machinery

· Factory Equipments

· Office Equipments

· Computers

· Furniture and Fittings

· Vehicles

· Computer Accessories

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.14
UK Pound	1	Rs.100.55
Euro	1	Rs.71.26

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	YES
--EPF	YES/NO	NO
TOTAL		52

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.