MIRA INFORM REPORT

Report No. :	491370
Report Date :	12.02.2018

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 to 24
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	08.08.1975
Com. Reg. No.:	36-001919
Capital Investment / Paid-up Capital :	INR 601.700 Million
CIN No.: [Company Identification No.]	L27109AP1975PLC001919
IEC No.:	0990004317
GST No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Divulged
PAN No.: [Permanent Account No.]	AABCP3074H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Cold Roll Formed Sections, Cold Rolled Steel Strips, Metal Crash Barriers, Industrial Components, ERW and Precision Tubes, Solar Mounting Structures and Hydraulic Cylinders. (Registered Activity)
No. of Employees :	1515 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject was incorporated in the year 1975, based in Hyderabad (Telangana) and it is engaged in manufacturing of Cold Rolled Steel Strips, Precision Tubes, Engineered Steel Products and Cold Rolled Formed Sections. As per financials of March 2017, the company has registered growth of 13.34% in its revenue as compared to its previous year’s revenue and reported fair profit margin of 3.04% under review. Rating takes into consideration the company’s established track record of business operations marked by sound net worth base along with comfortable debt coverage indicators and good liquidity position. Rating continuous to derive strength from experience management team and wide product range with presence across diversified business segments Share are quoted high on Stock Exchanges. (Share are traded at a price of INR 64.80 against its face value of INR 5.) However, rating strength is partially offset by risks related susceptibility of its profitability to volatility in raw material and intense competition from other organized and unorganized in the industry. As per unaudited financials of September 2017, the company has achieved a revenue of INR 2,855 million and has reported average profit margin of 2.70%. Payments terms are reported to be regular. In view of aforesaid, the company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Rating = A
Rating Explanation	Adequate degree of safety and low credit risk
Date	08.01.2018

Rating Agency Name	CARE
Rating	Short Term Rating = A1
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	08.01.2018

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 12.02.2018.

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DECLINED BY

Name :	Mr. Raghavan Vijay
Designation :	General Marketing Manager
Contact No.:	91-9822040122
Date :	09.02.2018

MANAGEMENT NON-COOPERATIVE [TEL. NO.: 91-40-40061621]

LOCATIONS

Registered/ Head Office :	Floor No. 3, DHFLVC Silicon Towers, Kondapur, Hyderabad - 500084, Telangana, India
Tel. No.:	91-40-40061621 to 24
	91-9822040122 [Mr. Raghavan Vijay]
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
Corporate Office / Factory 1:	Patancheru Unit IDA, Patancheru - 502319, Medak District, Telangana , India
Tel. No.:	91-8455-242184 To 242193
Fax No.:	91-8455-242424 / 242161
Factory 2 :	Isnapur Unit Isnapur Village - 502307, Medak (District), Telangana , India
Tel. No.:	91-8455-226615 / 17
Fax No.:	91-8455-226412
Factory 3 :	Tarapur Unit J-72, MIDC, Tarapur – 401506, Maharashtra, India
Tel. No.:	91-2525-272517 / 609 / 429
Fax No.:	91-2525 272536
Factory 4 :	Chennai Unit Kannigaipair Village, Periyapalem Main Road, Tiruvellore District-601102, Tamilnadu, India
Tel. No.:	91-44-27629042 / 27601009 / 27601010
Fax No.:	91-44-2762 9298
Factory 5 :	Hosur Unit 43, SIDCO Industrial Estate, II Phase, Hosur, Tamilnadu, India
Branch Office :	No.E9-A, SIDCO Industrial Estate, V Phase, Sipcot, Hosur-635126, Tamilnadu, India
Sales Offices :	Located at: · Bangalore · Chennai · Coimbatore · Faridabad · Hosur · Vadodara · Ahmedabad · Jamshedpur · Kolkata · Mumbai · Pune · Delhi

DIRECTORS

AS ON: 31.03.2017

Name :	Mr. Aditya Rao
Designation :	Managing Director
Address :	8-2-293/82/A/381, 442, Plot No. 381, Road No. 10, Jubilee Hills, Hyderabad-500033, Telangana, India
Date of Birth/Age :	06.12.1981
Qualification :	Master’s degree in Engineering Management from Cornell University, New York, USA
Experience :	Experience in Corporate Business Planning
Date of Appointment :	30.09.2014
DIN No.:	01307343
Name :	Joginapally Venkata Nrupender Rao
Designation :	Whole-time Director
Address :	Plot No.381, Road No.10, Jubilee Hills, Hyderabad-500033, Telangana, India
Date of Appointment :	01.04.2013
DIN No.:	00089922
Name :	Mrs. Lavanya Kumar Rao Kondapally
Designation :	Whole-time Director
Address :	2-1-73/1, Nallakunta, Hyderabad-500044, Telangana, India
Date of Appointment :	07.05.2014
DIN No.:	01710629
Name :	Mr. Kamalakar Rao Bandari
Designation :	Director
Address :	603, Bandari Residency, Begumpet, Hyderabad-500016, Telangana, India
Date of Appointment :	30.01.2009
DIN No.:	00038686
Name :	Mr. Comandur Parthasarathy
Designation :	Director
Address :	D No 8-2-293/82/A/648, Plot No 648, Road No. 34, Jubilee Hills, Hyderabad-500034, Telangana, India
Date of Birth/Age :	07.07.1955
Qualification :	B.SC/LL.B/FCA/FCS
Experience :	Experience in the field of management
Date of Appointment :	09.11.2015
DIN No.:	00079232
Name :	Mr. Manish Mahendra Sabharwal
Designation :	Director
Address :	48, Hatkesh Society, N/S Road No. 7, Juhu, Mumbai-400049, Maharashtra, India
Date of Appointment :	22.04.2011
DIN No.:	00969601
Name :	Mr. Ravi Chachra
Designation :	Director
Address :	Ravi Chachra, 26, Silver Brook Road, Westport Ct 068801523 US
Date of Appointment :	29.07.2006
DIN No.:	01298145
Name :	Mr. Vishal Satinder Sood
Designation :	Director
Address :	B 902, Central Park 1, Golf Course Road, Sector - 42, Gurugram-122002, Haryana, India
Date of Birth/Age :	23.02.1972
Qualification :	B.E. M.B.A from IIM Ahmedabad
Experience :	Experience in the field of management
Date of Appointment :	31.01.2012
DIN No.:	01780814
Name :	Mr. Varun Chawla
Designation :	Director
Address :	A-65-A, Nizamuddin East, New Delhi-110013, India
Date of Appointment :	09.11.2012
DIN No.:	02097425
Name :	Potluri Venkateswara Rao
Designation :	Director
Address :	179, Ushodaya Enclave, HIG, Phase-II, Road No.1, Kanaka Miyapur, Hyderabad-500049, Telangana, India
Date of Birth/Age :	15.08.1959
Qualification :	B. Tech (Civil Engineering)
Experience :	Experience in the field of management
Date of Appointment :	30.03.2016
DIN No.:	03157581
Name :	Mrs. Sita Vanka
Designation :	Director
Address :	2-2-1137/3/1/1, New Nallakunta, Hyderabad-500044, Telangana, India
Date of Appointment :	30.09.2015
DIN No.:	07016012
Name :	Eric James Brown
Designation :	Additional Director
Address :	18 Rosedown Pl The Woodlands TX 773820000 US
Date of Appointment :	10.11.2017
DIN No.:	07670880

KEY EXECUTIVES

Name :	Mr. Srinivasa Krishna Prasad Jammalamadaka
Designation :	Chief Financial Officer (KMP)
Address :	H.No: 2-37/14 , Plot No 68, Vinayakanagar Colony, Indiranagar, Serilingampally, Gachibowl I, Hyderabad-500032, Telangana, India
Date of Appointment :	13.05.2015
PAN No:	ADOPJ9858L
Name :	Mr. Mohammed Ali Baig Mirza
Designation :	Company Secretary
Address :	H No. 5-61, Shashadri Nagar, Mahabub Nagar-509001, Andhra Pradesh, India
Date of Appointment :	06.12.2013
PAN No:	AXJPM4816G
Name :	Mr. Raghavan Vijay
Designation :	General Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 31.12.2017

Category of Shareholder	No. of Shares	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)
(A) Promoter & Promoter Group	43768697	36.37
(B) Public	76580817	63.63
Grand Total	120349514	100.00

Category of shareholder	No. of fully paid up equity shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)
A1) Indian		0.00
Individuals/Hindu undivided Family	43768697	36.37
KONDAPALLY LAVANYA KUMAR RAO	82200	0.07
KONDAPALLI LAKSHMAN RAO	95200	0.08
Y MURALIDHAR RAO	110400	0.09
Y REKHA RAO	164057	0.14
J RAJAYALAKSHMI	4891000	4.06
J NRUPENDER RAO	5097863	4.24
ADITYA NARSING RAO	4962508	4.12
J AVANTI RAO	1537060	1.28
KONDAPALLY SANDHYA	69600	0.06
KONDAPALLI SUMATHA DEVI	242900	0.20
JAYANTHI PULJAL	2077500	1.73
BHAVANA PULJAL	1694017	1.41
KALPANA PULJAL	1750081	1.45
PENNAR HOLDINGS PRIVATE LIMITED	20994311	17.44
Sub Total A1	43768697	36.37
A2) Foreign		0.00
A=A1+A2	43768697	36.37

Category & Name of the Shareholders	No. of fully paid up equity shares held	Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)
B1) Institutions	0	0.00
Mutual Funds/	10990304	9.13
FRANKLIN INDIA SMALLER COMPANIES FUND	10989354	9.13
Venture Capital Funds	100	0.00
Foreign Portfolio Investors	12736109	10.58
SAIF INDIA IV FII HOLDINGS LIMITED	12138080	10.09
Financial Institutions/ Banks	255376	0.21
Sub Total B1	23981889	19.93
B2) Central Government/ State Government(s)/ President of India	0	0.00
B3) Non-Institutions	0	0.00
Individual share capital upto INR 0.200 Million	31332064	26.03
Individual share capital in excess of INR 0.200 Million	9548355	7.93
NBFCs registered with RBI	90369	0.08
Any Other (specify)	11628140	9.66
Sub Total B3	52598928	43.71
B=B1+B2+B3	76580817	63.63

BUSINESS DETAILS

Line of Business :	Manufacturer of Cold Roll Formed Sections, Cold Rolled Steel Strips, Metal Crash Barriers, Industrial Components, ERW and Precision Tubes, Solar Mounting Structures and Hydraulic Cylinders. (Registered Activity)
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 :

Reference:	Not Divulged
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

No. of Employees :

1515 [Approximately]

Bankers :

Bank Name:	State Bank of India
Branch:	IFB Branch, H No. 6-3-1109/1, Hyderabad - 500082, Telangana, India
Person Name (with Designation):	--
Contact Number:	91-40-23414058 (Ringing)
Name of Account Holder:	--
Account Number:
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
IFSC No.:	SBIN0009103
Remarks:	--

· State Bank of Patiala

· Axis Bank Limited

· IFCI Limited

Facilities :

SECURED LOANS	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
LONG-TERM BORROWINGS
From Banks
Axis Bank Limited	500.000	124.300
State Bank of India	48.400	0.000
IFCI Limited	0.000	500.000
HDFC Bank Limited (Vehicle Loan)	1.400	0.000
From NBFC - Kotak Mahindra Prime Ltd (Vehicle loans)	0.700	1.000
SHORT TERM BORROWINGS
Cash Credit from Banks
State Bank of India	477.400	735.500
Axis Bank Limited	71.400	125.800
State Bank of Patiala	101.200	103.800
Total	1200.500	1590.400

Statutory Auditors :
Name :	Rambabu and Company Chartered Accountants
Address :	6-3-1090/1/A, Pancom Chambers, 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 :	Shaik and Associates Cost Accountants
Address :	Flat No. 111, Block A, Gayathri Hills Apartments, Prashanth Hills, Near Raidurgam Police Station Junction, Hyderabad - 500032, Telangana, India
Memberships :	Not Available
Collaborators :	Not Available
Common Director:	Saven Technologies Limited
Subsidiary Companies :	· Pennar Engineered Building Systems Limited · Pennar Enviro Limited · New Era Enviro Ventures (Karimnagar) Private Limited

CAPITAL STRUCTURE

AS ON: 31.03.2017

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
120349514	Equity Shares	INR 5/- each	INR 601.700 Million

The details of Shareholders holding more than 5% shares:

Name of the Share holders	31.03.2017
	No of Shares	% held
Pennar Holdings Private Limited	20953811	17.41%
Saif Advisors Mauritius Limited A/C Saif India IV FII Holdings	12138080	10.09%
Eight Capital Master Fund Limited	7090157	5.89%
Franklin India Smaller Companies Fund	7889354	6.56%

The reconciliation of the equity shares outstanding is set out below:

Particulars	31.03.2017
	No of Shares
Equity Shares at the beginning of the year	12,03,49,514
Add/(Less) : Movement during the year	--
Equity Shares at the end of the year	12,03,49,514

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	601.700	601.700	629.500
(b) Reserves & Surplus	3232.900	2957.200	2711.900
(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)	3834.600	3558.900	3341.400
(3) Non-Current Liabilities
(a) Long-term borrowings	780.900	855.700	453.100
(b) Deferred tax liabilities (Net)	263.900	244.500	229.800
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	14.900	12.100	10.300
Total Non-current Liabilities (3)	1059.700	1112.300	693.200
(4) Current Liabilities
(a) Short term borrowings	650.000	965.100	939.100
(b) Trade payables	2572.500	1994.000	1011.400
(c) Other current liabilities	272.300	342.100	347.800
(d) Short-term provisions	83.400	46.900	2.800
Total Current Liabilities (4)	3578.200	3348.100	2301.100
TOTAL	8472.500	8019.300	6335.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2030.500	2048.200	2023.900
(ii) Intangible Assets	111.400	117.700	124.000
(iii) Capital work-in-progress	81.800	2.000	5.400
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	629.000	723.100	227.700
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	11.200
(e) Other Non-current assets	50.600	49.900	41.700
Total Non-Current Assets	2903.300	2940.900	2433.900
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1887.800	1647.500	1316.800
(c) Trade receivables	2437.100	2312.500	2266.200
(d) Cash and cash equivalents	480.400	563.900	100.800
(e) Short-term loans and advances	716.000	514.700	170.300
(f) Other current assets	47.900	39.800	47.700
Total Current Assets	5569.200	5078.400	3901.800
TOTAL	8472.500	8019.300	6335.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2017	31.03.2016	31.03.2015
	SALES
		Revenue from Operations (Net)	9877.000	8714.300	8282.100
		Other Income	34.900	23.100	11.500
		TOTAL	9911.900	8737.400	8293.600
Less	EXPENSES
		Cost of Materials Consumed	7151.100	6231.100	6038.100
		Changes in inventories	-361.700	-142.700	-16.100
		Employees benefits expense	616.800	531.000	435.500
		Manufacturing expenses	418.600	358.600	758.700
		Other expenses	1153.600	950.200	373.600
		TOTAL	8978.400	7928.200	7589.800
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		933.500	809.200	703.800
Less	FINANCIAL EXPENSES		337.400	278.400	260.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		596.100	530.800	443.200
Less/ Add	DEPRECIATION/ AMORTISATION		117.500	114.900	109.500
	PROFIT BEFORE TAX		478.600	415.900	333.700
Less	TAX		178.000	145.700	120.400
	PROFIT AFTER TAX		300.600	270.200	213.300
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	223.700	161.900	80.900
	Earnings Per Share (INR)		2.50	2.25	1.77

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt
Axis Bank Limited	0.000	93.800	1125
State Bank of India	105.700	0.000	0.000
HDFC Bank Limited (Vehicle Loan)	0.400	0.000	0.000
ICICI Bank (Vehicle Loan)	0.900	0.000	0.000
From NBFC
Kotak Mahindra Prime Ltd (Vehicle loans)	1.100	2.100	2.300
Sales Tax Deferment Loan	0.000	0.000	2.300
Total	108.100	95.900	1129.600
Cash generated from operations	986.900	1084.800	219.200
Net cash from operating activities	856.000	1005.700	216.700

QUARTERLY RESULTS

PARTICULARS	30.06.2017	30.09.2017
Type	1^st Quarter	2^nd Quarter
Net Sales	3206.100	2855.000
Total Expenditure	2942.000	2596.600
PBIDT (Excl OI)	264.100	258.400
Other Income	5.700	11.100
Operating Profit	269.800	269.500
Interest	89.400	101.300
Exceptional Items	0.000	0.000
PBDT	180.400	168.200
Depreciation	0.000	0.000
Profit Before Tax	151.200	133.400
Tax	85.900	56.200
Provisions and contingencies	0.000	0.000
Profit After Tax	65.300	77.200
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	65.300	77.200

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	90.06	96.86	99.87
Account Receivables Turnover (Income / Sundry Debtors)	4.05	3.77	3.65
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	131.30	116.80	61.14
Inventory Turnover (Operating Income / Inventories)	0.49	0.49	0.53
Asset Turnover (Operating Income / Net Fixed Assets)	0.42	0.37	0.33

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.53	0.54	0.61
Debt Equity Ratio (Total Liability / Networth)	0.40	0.54	0.75
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.93	0.94	0.69
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.58	0.61	0.64
Interest Coverage Ratio (PBIT / Financial Charges)	2.77	2.91	2.70

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	3.04	3.10	2.58
Return on Total Assets ((PAT / Total Assets) * 100)	%	3.55	3.37	3.37
Return on Investment (ROI) ((PAT / Networth) * 100)	%	7.84	7.59	6.38

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.56	1.52	1.70
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.03	1.02	1.12
G-Score Ratio Financial (Networth / Total Assets)	0.45	0.44	0.53
G-Score Ratio Debt (Debts / Equity Capital)	2.56	3.19	4.01
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.56	1.52	1.70

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	INR 5.00/-
Market Value	INR 64.80/-

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	629.500	601.700	601.700
Reserves & Surplus	2711.900	2957.200	3232.900
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	3341.400	3558.900	3834.600
long-term borrowings	453.100	855.700	780.900
Short term borrowings	939.100	965.100	650.000
Current Maturities of Long term debt	1129.600	95.900	108.100
Total borrowings	2521.800	1916.700	1539.000
Debt/Equity ratio	0.755	0.539	0.401

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	8282.100	8714.300	9877.000
		5.218	13.342

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	8282.100	8714.300	9877.000
Profit	213.300	270.200	300.600
	2.58%	3.10%	3.04%

LEGAL CASE

High Court of Hyderabad

Case Details

PRIMARY DETAILS

Main Number	CEA 65/2016	SR Number	CEASR 3224/2006
Petitioner	THE COMMISSIONER OF CUSTOMS & CENTRAL EXCISE, HYD-1	Respondent	M/S. PENNAR INDUSTRIES LTD.,
Petitioner Advocate	M V J K KUMAR (SR SC FOR CEC-SER TAX )	Respondent Advocate	-
Case Category	NPD	District	KRISHNA
Filing Date	07/10/2006	Registration Date	09/09/2016
Listing Date	16/08/2017	Case Status	PENDING
Purpose	Interlocutory
Hon'ble Judges	-

CATEGORY

Category:	-	Sub Category:	Central Excise Appeal
Sub Sub Category:	Payment of Duty Tax

IA DETAILS

IA Number	Misc.Paper Type	Status	Prayer	Order Date	Order
IA 1/2012(CEAMP 127/2012)	Dispense with Petition	Disposed	IA PRAYER	02/01/2016	--
IA 3/2016(CEAMP 78/2016)	Condone Delay Petition	Disposed	IA PRAYER	15/09/2016	--
IA 1/2016(CEAMP 3/2016)	Condone Delay Petition	Disposed	IA PRAYER	04/08/2016	--
IA 2/2016(CEAMP 72/2016)	Restoration Petition	Disposed	IA PRAYER	15/09/2016	--
IA 4/2016(CEAMP 1887/2016)	Memo Of Appearance	Disposed	IA PRAYER	--	--

LOWER COURT DETAILS

Court Name	High court
District	Hyderabad
Lower Court Case No.	ORDER 920/2006
Hon'ble Judge	CE & STAT., SOTUH ZNAL BENCH, BANGALORE
Date of Judgement	10-05-2006

PRAYER

To allow the appeal by duly setting aside the Final Order No 920 of 2006 dt 10/05/2006 made in Appeal No E/801/2005 on the file of the CE & STAT South Zonal Bench Bangalore upholding the order -in Appeal No 14/2005 (H-I) -CE dt 31/01/2005 passed by the Commissioner (Appeals) of Customs and Central Excise (Appeals) Hyderabad

PARTY DETAILS

Petitioner(S) Name:	THE COMMISSIONER OF CUSTOMS & CENTRAL EXCISE HYD-1 Commissionerate LB Stadium Road BAsheerbagh Hyderabad 500 004
Respondent(S) Name:	PENNAR INDUSTRIES LTD Rep by its M D Patancheru Mandal Medak District

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	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
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

INDEX OF CHARGES

SNO	SRN	CHARGE ID	CHARGE HOLDER NAME	DATE OF CREATION	DATE OF MODIFICATION	DATE OF SATISFACTION	AMOUNT	ADDRESS
1	G70901129	100141437	AXIS BANK LIMITED	15/12/2017	-	-	300000000.0	CORPORATE BANKING BRANCH, FIRST FLOOR,6-3-879/B,G PULLA REDDY BUILDING,GREENLANDS, BEGUMPETHYDERABADTG500016IN
2	G74039199	100147973	YES BANK LIMITED	08/11/2017	-	-	800000000.0	MAYANK TOWERS, NEAR HDFC BANK, RAJ BHAVAN RDLUMBINI CLASSIC APARTMENT, SOMAJIGUDA,HYDERABADTG500082IN
3	G50975531	100117108	AXIS BANK LIMITED	05/07/2017	-	-	250000000.0	FIRST FLOOR, NO 6-3-879/B, G PULLA REDDY BUILDINGGREENLAND, BEGUMPETHYDERABADTG500016IN
4	G60574605	100088435	AXIS BANK LIMITED	06/03/2017	11/10/2017	-	500000000.0	FIRST FLOOR,6-3-879/B, G PULLA REDDY BUILDING,GREEN LANDS, BEGUMPETHYDERABADTG502319IN
5	G39661681	100087142	STATE BANK OF INDIA	21/02/2017	-	-	330000000.0	INDUSTRIAL FINANCE BRANCHRAJ BHAVAN ROAD , SOMAJIGUDAHYDERABADTG500082IN
6	C14092449	10511889	AXIS BANK LIMITED	21/07/2014	-	-	150000000.0	CORPORATE BANKING BRANCH, NO:6-3-879-B, IST FLOORG.PULLAREDDY BUILDING, GREENLANDS, BEGUMPETHYDERABADTG500016IN
7	C81776551	10470557	AXIS BANK LIMITED	10/12/2013	22/01/2016	-	300000000.0	CORPORATE BANKING BRANCH, NO:6-3-879-B, IST FLOOR,G.PULLAREDDY BUILDING, GREENLANDS, BEGUMPET,HYDERABADTG500016IN
8	A87232930	10222431	STATE BANK OF INDIA	05/06/2010	-	-	895200000.0	INDUSTRIAL FINANCE BRANCH, RAJ BHAVAN ROADSOMAJIGUDAHYDERABADAP500082IN
9	G08127565	10157652	STATE BANK OF INDIA	19/03/2009	22/01/2016	-	2200000000.0	INDUSTRIAL FINANCE BRANCH, RAJBHAWAN ROADSOMAJIGUDAHYDERABADTG500082IN
10	A45249216	10058235	STATE BANK OF INDIA	13/06/2007	25/08/2008	-	1200000000.0	INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA,RAJBHAVAN ROADHYDERABADAP500004IN

UNSECURED LOANS

PARTICULARS	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
LONG-TERM BORROWINGS
Sales Tax Deferment Loan	230.400	230.400
Total	230.400	230.400

CORPORATE INFORMATION

The company 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. Pennar Industries Limited 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 recorded highest ever consolidated gross sale at INR 17180.000 million and highest ever EBIDTA at INR 1740.000 million. Pennar has recorded consolidated net profit of INR 470.000 million. The company’s new products and ability to increase new customer base has helped in achieving this. All the business units of the company are profitable and showed growth over previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

OUTLOOK

The World Bank, in its June report on Global economic prospectus, indicated that the world economy could grow at 2.7% in 2017 and 2.9% in 2018. This forecast is based on improvement in global trade and investments which bottomed out in 2016 along with a gradual rise in commodity prices. Activity in advanced economies is expected to gain momentum in 2017, supported by an upturn in the United States, as previously anticipated. In the Euro Area and Japan, growth forecasts have been upgraded, reflecting strengthening domestic demand and exports.

The forecast is subject to moderate downside risks that include escalating trade restrictions because of protectionist policies by countries such as US and UK and a slowdown in Chinese economy.

INDIAN ECONOMIC OVERVIEW

Indian economy grew at a pace of 7.1% in 2016-17 registering lower growth compared to 2015-16. The growth slowed down from 7.6% in previous year 2015- 16 due to a below-average monsoon coupled with a liquidity crunch curbing rural demand, a key growth engine of the Indian economy.

The Union budget 2017-18 is strictly in line with the fiscal consolidation path of the government and the reforms by the government are aimed at making India a more organized economy. The Government’s conscious focus upon the improvement of Ease of Doing Business with reforms such as the Implementation of GST and the Make in India Campaign created a launch-pad for the Indian economy to scale greater heights.

OUTLOOK

The Government is aimed at fiscal consolidation along with continuous reforms that will reduce impediments to sustainable growth. The political stability of the country along with its macroeconomic prospectus is setting India on a robust growth path for the future. The World Bank has estimated the growth for India to be 7.5% in 2018 and 7.7% in 2019. 2017 is expected to have an above normal monsoon that will activate the growth engines of the Indian economy such as rural consumption thus setting stage for robust growth.

INDIA’S INFRASTRUCTURE OVERVIEW

The Indian Infrastructure sector is one of the key drivers of the Indian economy. The sector is largely responsible for propelling India’s overall development and enjoys intense focus from the Government policy making that would ensure time-bound creation of world class infrastructure in the country

The Road Transport & Highways Ministry has invested approximately INR 320000.000 million (US$ 47.7 billion), while the Shipping Ministry has invested around INR 800000.000 million (US$ 12.0 billion) in the past two and a half years towards building world class highways and shipping infrastructure in the country. The Government of India is expected to invest sizably in the infrastructure sector, mainly highways, renewable energy and urban transport, prior to the general elections in 2019.

OUTLOOK

Indian infrastructure sector is slowly reviving from the stagnation it experienced in the previous years with the help of capital impetus from the Government. Majority of the new infrastructure projects were related to roads and railways. Demand for affordable housing coupled with award of infrastructure status by the government will enable significant investments in this space However, lower capacity utilization levels by corporates and lack of private CAPEX is dampening the growth of infrastructure sector. Overall the growth outlook for infrastructure sector remains moderate.

INDIAN CONSTRUCTION SECTOR OVERVIEW

Indian construction sector, second largest sector in terms of number of people employed contributes to around 8.5% of the Indian GDP and employs more than 35 Million people. The size of the Indian construction sector is estimated at INR 2480000.000 million. Construction sector provides a growth impetus to many other sectors such as Cements, Iron & steel, Paints & tiles etc. Residential construction was the largest in the Indian construction industry. Urbanization has been key demand driver in India along with rising household incomes which lead to improvement to residential construction over a period of time.

OUTLOOK

Indian automobile market is one of the most competitive markets in the world. The market witnessed significant growth over the last two decades owing to investments from foreign players through FDI along with significant rise in Indian disposable incomes and this trend is expected to continue in future. Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15.

The automobile industry sales grew significantly during the years 2016-17 on account of a gradual uptick in rural demand along with growth in exports. However, the sector saw mixed results on account of the impact of demonetization in the third and fourth quarters of 2016-17 along with this the ban on BS-3 vehicles from April 1st 2017.

In 2017-18 the industry is expected to witness gradual pickup in demand as the liquidity and cash situation in the market improves. Also, demand is expected to improve on back of various initiatives taken by the government in the Union Budget 2018. Higher allocation for infrastructure and transportation segment is likely to benefit the commercial vehicles demand during the year. Allocation to farm credit has been increased which is expected to fuel demand for the tractors segment. Also, reduction in tax burden for individuals with income below INR 0.500 million is likely to have positive impact on the two-wheelers and small cars demand. However, issues related to upgrading emission standards with significant investments and uncertainty related to GST may impact the sector to some extent.

INDIAN MANUFACTURING SECTOR OVERVIEW

Manufacturing has emerged as one of the high growth sectors in India. The ‘Make in India’ program has been launched with a vision to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. India is expected to become the fifth largest manufacturing country in the world by the end of year 2020*.

Basing on the Gross Value Added (GVA) at constant (2011-12) prices, the manufacturing sector in India grew 7.9 per cent year-on-year in 2016-17, as per the 2nd provisional estimate of annual national income published by the Government of India. Under the Make in India initiative, the Government of India aims to increase the share of the manufacturing sector in GDP to 25 per cent by 2022, from current share of 16 per cent, and to create 100 million new jobs by 2022. Thus the scenario of the Indian manufacturing sector continues to remain positive.

INDIAN SOLAR POWER SECTOR OVERVIEW

Power is one of the most critical components of infrastructure and is crucial for the economic growth and welfare of any nation. Energy security through non-conventional sources is of paramount importance to a country such as India which depends on exports for 80% of its energy needs. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

India ranks third among 40 countries in EY’s Renewable Energy Country Attractiveness Index, on back of strong focus by the government on promoting renewable energy and implementation of projects in a time bound manner.

Indian power sector is undergoing a significant change that has redefined the industry outlook. Sustained economic growth continues to drive electricity demand in India. The Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. Total installed capacity of power stations in India stood at 315,426.32 Megawatt (MW) as of February 28, 2017. In order to meet the future demand mass additions in installed and generated capacity is needed for economic growth. However, a continued downward

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/NINE MONTHS ENDED 30th SEPTEMBER 2017

(INR IN MILLION)

Particulars	Quarter ended	Quarter ended	Half year ended
	30.09.2017	30.06.2017	30.09.2017
	Unaudited	Unaudited	Unaudited
INCOME FROM OPERATIONS
Revenue from operations	2855.000	3206.1000	6061.100
Other Income	11.100	5.700	16.800
Total Revenue	2866.100	3211.800	6077.900
EXPENSES
Cost of materials consumed	1766.700	2210.800	3977.500
Changes in inventories of finished goods and work-in-progress	230.800	(105.500)	125.300
Excise duty	0.000	211.700	211.700
Employee benefits expense	166.500	169.000	335.500
Finance cost	101.300	89.400	190.700
Depreciation and Amortization expenses	34.800	29.200	64.000
Other Expenditure	432.600	456.000	888.600
Total Expenses	2732.700	3060.600	5793.300
Profit before tax	133.400	151.200	284600
Tax Expense
Current tax	18.700	51.400	70.100
Deferred tax	37.500	34.500	72.000
Total Tax Expense	77.200	85.900	142.100
Profit for the period after Tax	77.200	65.300	142.500
Other comprehensive income
i) Items that will not be reclassified to profit or loss in subsequent period premeasurement of defined benefit plan	(2.500)	0.000	(2.500)
ii) Income tax relating to the above	0.600	0.000	0.600
Total other comprehensive income	(1.900)	0.000	(1.900)
Total comprehensive income	75.300	65.300	140.600
Paid-up Equity Share Capital (Face value INR 5/- per share)	601.700	601.700	601.700
Basic and Diluted EPS (in INR)	0.64	0.54	1.18

BALANCE SHEET AS AT SEPTEMBER 30, 2017

Particulars	30.09.2017
ASSETS
Non-current assets
Property, Plant and equipment	2422.100
Capital work in progress	28.500
Other Intangible assets	109.300
Financial assets
i) Investments	716.100
Other non-current assets	53.200
Total Non-Current Assets	3329.200
Current Assets
Inventories	1925.700
Financial assets
i) Trade receivables	2654.800
ii) Cash and cash equipment’s	342.400
iii) Other financial assets	827.200
Other current assets	45.800
Total current assets	5795.900
TOTAL ASSETS	9125.100
EQUITY AND LIABILITIES
Equity
Equity share capital	617.700
Other Equity	3246.600
Total Equity	3848.300
LIABILITIES
Non-current liabilities
Financial
i) Borrowings	819.000
Deferred tax lenities (net)	335.300
Provisions	18.000
Total non-current liabilities	1172.300
Current liabilities
Financial liabilities
i) Borrowings	892.700
ii) Trade liabilities	2517.800
Provisions	78.200
Other current liabilities	615.800
Total current liabilities	4104.500
TOTAL EQUITY AND LIABILITY	9125.100

NOTES:

1. The above unaudited standalone financial results were reviewed and recommended by the Audit Committee at their meeting held on November 09th, 2017 and approved by the Board of Directors at their meeting held on November 10th, 2017.

2(a). The Company adopted Indian Accounting Standards ("Ind AS") from April 1st, 2017 with transition date of April 1st, 2016 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard (lnd AS) 34 - Interim financial reporting prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and other accounting principles generally accepted in India.

2(b). Pursuant to the SEBI circular CIR/CFD/FAC/62/2016 dated July 05th, 2016, the published figures for the quarter and half year ended September 30th, 2016 have been recast to Ind AS to the extent applicable to the Company.

2(c). The reconciliation of the financial results for the quarter and half year ended September 30th, 2016 to those reported under previous Generally Accepted Accounting Principles ("GAAP") is summarised as follows

Particulars	30.09.2016
Net profit after tax as reported under previous GAAP	64.400
Recognition of financial instruments using effective interest rate	(1.800)
Reversal of amount charged to statement of profit loss from revaluation reseve	(12.500)
Actuarial loss on employee benefit expenses reclassified to other comprehensive income	5.300
Tax adjustments	(0.600)
Net profit after tax as per IND AS before OCI	54.800
Other compressive income (net of tax)	(4.000)
Total comprehensive income as per IND-AS	50.800

3(d). The financial results for the quarter and half year ended September 30th, 2016 and tine reconciliation statement thereof presented above have not been reviewed by the statutory auditors and are presented based on the information compiled by the management.

3(e). Submission of Ind AS compliant financial results for the year ended March 31st, 2017 not being mandatory, the unaudited financial results for the year ended March 31st, 2017 and the Balance Sheet as at March 31st, 2017 are not disclosed.

3. The Government of India introduced the Goods & Services Tax (GST) with effect from July 01st, 2017. Accordingly, in compliance with Indian Accounting Standards (Ind As) IB -'Revenue', Revenue from Operations for the quarter ended September 30th, 2017 is provided net of GST. Revenue from Operations of earlier periods included excise duty which is now subsumed in GST. Revenue from Operations for the half year ended September 30th, 2017 includes excise duty upto June 30th, 2017.

4. These unaudited standalone financial results may require adjustments before constituting the final standalone Ind AS financial statements as of and for the year ending March 31st, 2018 due to changes in financial reporting requirements arising from new or revised standards or interpretations issued by MCA/ICAI or changes in the use of one or more optional exemptions from full retrospective application of certain Ind AS as permitted under Ind AS 101.

5. The Company is engaged in the manufacture of various steel products, which in the context of Ind AS 108 - Operating Segment, specified under section 133 of the Companies Act, 2013 is considered as a singleit of the Company.

6. Comparative figures have been regrouped/ reclassified, wherever necessary.

CONTINGENT LIABILITIES:

Particulars	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
Bank Guarantees	27.400	29.200
Corporate Guarantee given for loans taken by subsidiary	3985.000	2755.000
Claims by Customs	4.500	26.800
LC/Bills Discounted	54.000	150.200
Notes: The company has given Corporate guarantees of INR 11550.000 million to State bank of India and INR 1200.000 million to Axis Bank Limited and INR 45000.000 million to Yes bank Limited for Working capital loans taken by the subsidiary Pennar Engineered Building Systems Ltd (PEBSL) fruther collateral security by way of pledge of shares of Pennar Engineered Building Systems Ltd to the extent of 61,50,000 shares of INR10/- each amounting to INR 61.500 million is also provided to State Bank of India. Corpoarte guarantee to Axis Bank Limited to the tune of INR 15000.000 million for Working capital loans, Letter of credit and Bank guarantee facilities taken by the subsidiary Pennar Enviro Ltd. The company has given Corporate guarantees of INR 2500.000 million to IFCI Limited and INR 78000.000 million to State Bank of India towards the Term Loan taken by the subsidiary Pennar Renewables Private Limited.

FIXED ASSETS:

· Land

· Roads

· Buildings

· Plant and Machinery

· Electricals

· Computers

· Office Equipment’s

· Furniture

· Vehicles

· Licence Fees

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	INR
US Dollar	1	INR 64.37
UK Pound	1	INR 89.71
Euro	1	INR 78.90

INFORMATION DETAILS

Information Gathered by :	SHK
Analysis Done by :	VIK
Report Prepared by :	ARC

SCORE FACTORS

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

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.