MIRA INFORM REPORT

Report No. :	493696
Report Date :	26.02.2018

IDENTIFICATION DETAILS

Name :	THE INDIAN HUME PIPE COMPANY LIMITED
Registered Office :	Construction House, 2nd Floor, 5, Walchand Hirachand Road, Ballard Estate, Fort, Mumbai-400001, Maharashtra
Tel. No.:	91-22-22618091 / 92 / 40748181
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	20.07.1926
Com. Reg. No.:	11-001255
Capital Investment / Paid-up Capital :	INR 96.894 Million
CIN No.: [Company Identification No.]	L51500MH1926PLC001255
IEC No.:	0388129115
TIN No.:	27100404092
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACT4063D
GSTIN:	27AAACT4063D1ZM
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development for drinking water supply projects, irrigation projects, Hydro Electric Projects, Sanitation and Sewerage Systems and also has been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.. (Registered Activity)
No. of Employees :	1329 (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 :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject was incorporated in the year 1926 and is based in Mumbai, Maharashtra. It is engaged in manufacturing, and marketing of hume pipes and allied products. As per the financial of 2017, the company has achieved a massive growth of 88.50% in its revenue as compared to the previous year’s revenue and has reported an average net profit margin of 5.78%. The company possesses sound financial position marked by strong net worth base along with low debt balance sheet profile and comfortable liquidity parameters. Moreover, the rating derives strength from long and established track record of the company in the water and irrigation infrastructure development segment, its diversified business profile along with reputed client base which consist of various State and Central Government agencies. The company has its share price trading at around INR 381.25 on BSE as on February 21, 2018 as against the Face Value (FV) of INR 2. The above rating strength are tempered by the high working capital intensity associated with the construction business, elongated working capital cycle translating into subdued operating cash generation and the competitive nature of the industry translating in lower operating margins. Business is active. Payment seems to be regular and as per commitments. In view of decent financial position and established track record, the company can be considered for normal 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 (30.09.2017)	Current Rating (31.12.2017)
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 Loans = A+
Rating Explanation	Adequate degree of safety and low credit risk.
Date	17.07.2017
Rating Agency Name	CARE
Rating	Short Term Loans = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	17.07.2017

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 26.02.2018

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 DENIED

Management Non-Corporative (Tel No.: 91-22-22618091)

LOCATIONS

Registered / Corporate Office :	Construction House, 2nd Floor, 5, Walchand Hirachand Road, Ballard Estate, Fort, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-22618091 / 92 / 40748181
Fax No.:	91-22-22656863
E-Mail :	info@indianhumepipe.com
Website :	www.indianhumepipe.com
Head Office :	Located at: Mumbai
Project / Marketing offices:	Located at: Dehradun Delhi Ghaziabad Faridabad Jaipur Bhopal Raipur Ahmednagar Pune Miraj Hyderabad Anantapuramu Bangalore Chennai
Factory:	Located at: Lucknow Sikar Kekri Karari Vatva Rajkot Kanhan Dhule Patancheru Karad Miraj Choutuppal Kovvur Chillamathur Bangalore Thanjavur Tirunelveli Silaiman
Research and Development Division:	Located at: Mumbai

DIRECTORS

As on 31.03.2017

Name :	Mr. Rajas Ratanchand Doshi
Designation :	Managing Director
Address :	33, Las Palmas, Little Gibbs Road, Malbar Hill, Mumbai - 400006, Maharashtra, India
Date of Appointment :	14.04.1994
DIN No.:	00050594
Name :	Mr. Mayur Rajas Doshi
Designation :	Whole-Time Director
Address :	33, Las Palmas, Little Gibbs Road, Malabar Hill, Mumbai - 400006, Maharashtra, India
Date of Appointment :	28.05.2012
DIN No.:	00250358
Name :	Mr. Ajit Gulabchand
Designation :	Director
Address :	94, NCPA Apartments, 1, Dorab Tata Road,Nariman Point, Mumbai - 400021, Maharashtra, India
Date of Appointment :	04.02.1993
DIN No.:	00010827
Name :	Ms. Jyoti Rajas Doshi
Designation :	Director
Address :	33, Las Palmas, Little Gibbs Road, Malabar Hill, Mumbai- 400006, Maharashtra, India
Date of Appointment :	27.05.1996
DIN No.:	00095732
Name :	Mr. Rajendra Motichand Gandhi
Designation :	Director
Address :	Nath-Navalai, 148, Railway Lines, Solapur - 413001, Maharashtra, India
Date of Appointment :	27.05.1996
DIN No.:	00095753
Name :	Mr. Rameshwar Deokisan Sarda
Designation :	Director
Address :	A-38, N.I.C.E., Satpur, Nashik - 422007, Maharashtra, India
Date of Appointment :	27.05.1996
DIN No.:	00095766
Name :	Mr. Nachimuthu Balakrishnan
Designation :	Director
Address :	Shravya Block D, 2nd Floor, Apt No.6, Vadavalli Coimbatore -641041 , Tamilnadu, India
Date of Appointment :	28.10.1998
DIN No.:	00095804
Name :	Ms. Anima Bhupendra Kapadia
Designation :	Director
Address :	Geeta 'B' Wing, Flat No.73, 8th Floor, Pandita Ramabai Road, Mumbai - 400007, Maharashtra, India
Date of Appointment :	27.07.2001
DIN No.:	00095831
Name :	Mr. Vijaykumar Mahabirprasad Jatia
Designation :	Director
Address :	Flat No. 3403, 34th Floor, Vivarea Building, C-Wing, Sane Guruji Marg, Mahalaxmi, Mumbai - 400011, Maharashtra, India
Date of Appointment :	25.10.2001
DIN No.:	00096977
Name :	Mr. Pandurang Dinkar Kelkar
Designation :	Director
Address :	5, Manisha Housing Society, 2nd Floor, Saket, Karvenagar, Pune - 411052, Maharashtra, India
Date of Appointment :	24.05.2011
DIN No.:	00255935

KEY EXECUTIVES

Name :	Mr. Milind Shrikrishna Rajadhyaksha
Designation :	Chief Financial Officer
Address :	303 Matoshree Heights, D. L. Vaidya Road, Dadar, Mumbai - 400028, Maharashtra, India
Date of Appointment :	27.05.2014
PAN No.:	AABPR0848N
Name :	Mr. Subhash Madhusudan Mandke
Designation :	Secretary
Address :	22, Radha Sah Nivas Co-Operative Housing Society Limited, Near Sai Baba Mandir, Thane (East), Thane - 400603, Maharashtra, India
Date of Appointment :	07.04.2008
PAN No.:	AAFPM3390N
EXECUTIVES
Name :	Mr. P. R. Bhat
Designation :	Vice President
Name :	Mr. Ajay Asthana
Designation :	Sr. General Manager
Name :	Mr. G. Pundareekam
Designation :	Sr. General Manager
Name :	Mr. Shashank J. Shah
Designation :	General Manager
Name :	Mr. S. P. Makhija
Designation :	General Manager
Name :	Mr. M. N. Gawade
Designation :	Chief Internal Auditor
Name :	Mr. A. B. Joshi
Designation :	Chief Personnel Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2017

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 %
(A) Promoter & Promoter Group	33874770	69.92
(B) Public	14572400	30.08
Grand Total	48447170	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

Category of shareholder	Total nos. shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a %
A1) Indian
Individuals/Hindu undivided Family	894550	1.85
RAJAS R. DOSHI	409150	0.84
JYOTI R. DOSHI	313330	0.65
MAYUR RAJAS DOSHI	172070	0.36
Any Other (specify)	32806480	67.72
IHP FINVEST LIMITED	31934160	65.92
RATANCHAND INVESTMENT PRIVATE LIMITED	872320	1.80
Sub Total A1	33701030	69.56
A2) Foreign		0.00
Individuals (NonResident Individuals/ Foreign Individuals)	173740	0.36
ADITYA R. DOSHI	173740	0.36
Sub Total A2	173740	0.36
A=A1+A2	33874770	69.92

Statement showing shareholding pattern of the Public shareholder

Category & Name of the Shareholders	Total no. shares held	Shareholding % calculated as per SCRR, 1957 As a %
B1) Institutions
Mutual Funds/	2490775	5.14
L & T MUTUAL FUND TRUSTEE LIMITED	2336775	4.82
Foreign Portfolio Investors	159555	0.33
Financial Institutions/ Banks	126396	0.26
Sub Total B1	2776726	5.73
B2) Central Government/ State Government(s)/ President of India		0.00
Central Government/ State Government(s)/ President of India	270002	0.56
Sub Total B2	270002	0.56
B3) Non-Institutions		0.00
Individual share capital upto INR 0.200 million	8788104	18.14
Individual share capital in excess of INR 0.200 million	150611	0.31
Any Other (specify)	2586957	5.34
Trusts	14213	0.03
HUF	429379	0.89
NRI – Non- Repat	103813	0.21
Director or Director's Relatives	45186	0.09
NRI – Repat	200526	0.41
Clearing Members	112765	0.23
Bodies Corporate	1681075	3.47
YMSH MANAGEMENT CONSULTANTS LLP	941102	1.94
Sub Total B3	11525672	23.79
B=B1+B2+B3	14572400	30.08

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development for drinking water supply projects, irrigation projects, Hydro Electric Projects, Sanitation and Sewerage Systems and also has been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.. (Registered Activity)

Products :

Item Code No.	Product Description
42204/42205/23955/24311	Construction and maintenance of projects relating to water supply, irrigation, sanitation and sewarage systems and pipe manufacturing

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers : (As per site visit)

• L & T
• HCC
• NCC
• Tata Power
• ABB
• GAR
• SPML
• SEW
• Pratibha Committed to Excel

No. of Employees :

1329 (Approximately)

Bankers :

• State Bank of India
• Bank of Baroda
• State Bank of Hyderabad
• HDFC Bank Limited
• Corporation Bank

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Long Term Loan from HDFC Bank Limited	131.250	206.250
Less: Current Maturities	75.000	75.000
(Secured by Creation of First Charge on Land at Pattancheru and Choutupal as per the Following Terms: Tenure: 5 years Interest Rate: HDFC Base Rate + 0.96 % Repayment Terms: Repayable in 16 Quarterly instalments of 187.50 Lakhs each Commencing from February, 2015 and last instalment due on November, 2018.)
Long Term Auto Loan From Kotak Mahindra Prime Limited	31.699	6.322
Less: Current Maturities	6.384	1.093
Secured against hypothecation of vehicles as per the Following Terms: Tenure: 5 years Interest Rate: 9.00% to 9.50% p.a. Repayment Terms: Repayable in monthly equated instalments
Short-term borrowings
Cash Credit/Working Capital
Demand Loans From Banks
State Bank of India	0.000	350.185
State Bank of Hyderabad	0.572	20.397
Bank of Baroda	0.000	1.039
Corporation Bank	0.000	20.373
HDFC Bank Limited	120.561	9.609
Short Term Loans from Banks Short Term Loans from Banks
State Bank of India	500.000	1150.000
State Bank of Hyderabad	0.000	100.000
HDFC Bank Limited	950.000	650.000
All the above facilities are secured by hypothecation of stock in trade, work in progress and trade receivables current and future on pari passu basis with the consortium banks and by a second charge on the Company's freehold land, building and plant & machinery carrying rate of interest at Base Rate +2.50% to 4.50% for item A and for item B it is @ 8.50% to 9.65% p.a. Loans under (A) above are payable on Demand and that under (B) above is for a period between 90 days to 180 days from the date of availment.
State Bank of Hyderabad	0.000	200.000
The above facility is secured under Subservient Charge on the entire movable Fixed Assets & Current Assets of the Company, carrying rate of interest at SBH Base rate +0.15%.
Total	1652.698	2638.082

Auditors :
Name :	K.S. Aiyar and Company Chartered Accountants
Address :	# F-7, Laxmi Mills, Shakti Mills Lane (Off Dr. E Moses Road), Mahalaxmi, Mumbai – 400011, Maharashtra, India
Tel. No.:	91-22-24932502 / 66551770
Fax No.:	91-22-66551774
E-Mail :	mail@ksaiyar.com
Website :	www.ksaiyar.com
Solicitors :	Daphtary Ferreira and Divan Argus Partners
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company :	Ratanchand Investment Private Limited
Promoter Holding Company (Holding 65.92% in Equity) :	IHP Finvest Limited
Companies in which control exists directly / indirectly :	Mobile Systems India Private Limited Raj Jyoti Trading and Investment Private Limited
Section 8 of Companies Act, 2013 :	Ratanchand Hirachand Foundation Walchand Hirachand Foundation Pramila Shantilal Shah Charity Foundation
Company in which a director is interested :	Verifacts Services Private Limited

CAPITAL STRUCTURE

After 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	INR 2/- each	INR 200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
48447170	Equity Shares	INR 2/- each	INR 96.894 Million

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	INR 2/- each	INR 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
48447170	Equity Shares	INR 2/- each	INR 96.894 Million

a) Of the above:

(i) 43570870 (19347285) equity shares fully paid-up have been issued as bonus shares by capitalisation of general reserves.

(ii) 1875000 (1875000) equity shares fully paid-up have been issued by part conversion of 13.5% debentures as per terms on 01-10-1993.

(iii) 31934160 (15967080) equity shares are held by holding Company - IHP Finvest Limited

(iv) 872320 (436160) equity shares are held by ultimate holding Company - Ratanchand Investment Private Limited

During the year 24223585 Equity Shares of INR 2/- each were issued and allotted (w.e.f. December 14 2016) as fully paid Bonus Shares by capitalisation of free reserves in the proportion of One Bonus Share of INR 2/- each for every One Equity Share of INR 2/- held by them as on the Record Date.

Reconciliation of number of shares:

Particulars	As at March 31, 2017
	No of Shares	% held
Balance at the beginning of the year	24223585	484.47
Add: Bonus shares issued during the year	24223585	484.47
Balance at the end of the year	48447170	968.94

Terms / rights attached to Equity Shares:

The Company has only one class of equity shares having a face value of INR 2/- per share. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of shareholders in the ensuing Annual General Meeting except interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) Details of shares held by shareholders holding more than 5% of aggregate shares in the company.

Name of the Shareholder	As at March 31, 2017
	No of Shares	% held
IHP Finvest Limited	31934160	65.92

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	96.894	48.447	48.447
(b) Reserves & Surplus	3899.178	3018.089	2820.387
(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	3996.072	3066.536	2868.834
(3) Non-Current Liabilities
(a) long-term borrowings	81.565	136.479	206.250
(b) Deferred tax liabilities (Net)	0.000	0.000	8.891
(c) Other long term liabilities	147.888	211.470	248.367
(d) long-term provisions	27.662	23.447	21.181
Total Non-current Liabilities	257.115	371.396	484.689
(4) Current Liabilities
(a) Short term borrowings	2521.133	2965.870	2773.868
(b) Trade payables	3177.073	2572.200	2321.561
(c) Other current liabilities	3285.131	1616.342	1492.293
(d) Short-term provisions	57.826	40.644	131.533
Total Current Liabilities	9041.163	7195.056	6719.255
TOTAL	13294.350	10632.988	10072.778
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	773.910	726.635	742.731
(ii) Intangible Assets	5.010	4.418	4.421
(iii) Capital work-in-progress	9.552	25.940	3.454
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2.927	2.927	4.617
(c) Deferred tax assets (net)	9.887	5.467	0.000
(d) Long-term Loan and Advances	250.904	106.658	95.159
(e) Other Non-current assets	144.060	186.632	225.902
Total Non-Current Assets	1196.250	1058.677	1076.284
(2) Current assets
(a) Current investments	5973.095	4362.671	5.000
(b) Inventories	4027.254	3354.542	3755.473
(c) Trade receivables	434.836	100.582	3352.058
(d) Cash and cash equivalents	1651.041	1743.966	210.727
(e) Short-term loans and advances	0.000	0.000	1669.036
(f) Other current assets	11.874	12.550	4.200
Total Current Assets	12098.100	9574.311	8996.494
TOTAL	13294.350	10632.988	10072.778

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	17096.094	9069.425	9758.160
	Other Income	29.641	29.591	95.645
	TOTAL	17125.735	9099.016	9853.805
Less	EXPENSES
	Cost of Materials Consumed	1347.770	942.662	1412.237
	Purchases of traded goods	10.936	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(100.053)	65.830	(79.915)
	Employees benefits expense	662.316	507.874	518.347
	Other expenses	360.305	309.135	291.970
	Construction expenses	12603.986	6175.873	6388.054
	Manufacturing and other expenses	135.039	98.448	130.398
	Exceptional Items	0.000	0.000	(31.235)
	TOTAL	15020.299	8099.822	8629.856
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2105.436	999.194	1223.949
Less	FINANCIAL EXPENSES	477.121	452.605	482.955
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1628.315	546.589	740.994
Less/ Add	DEPRECIATION/ AMORTISATION	105.269	98.040	121.321
	PROFIT/ (LOSS) BEFORE TAX	1523.046	448.549	619.673
Less	TAX	535.200	157.552	204.000
	PROFIT/ (LOSS) AFTER TAX	987.846	290.997	415.673
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	1589.913	1492.211	1264.005
Less	APPROPRIATIONS
	Transfer to General Reserve	0.000	100.000	100.000
	Interim Dividend	48.447	77.515	0.000
	Final Dividend (Proposed)	0.000	0.000	72.671
	Tax on Dividend	9.863	15.780	14.796
	Total	58.310	193.295	187.467
	Balance Carried to the B/S	2519.449	1589.913	1492.211
	Earnings / (Loss) Per Share (INR)	20.39	6.01	17.16

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt · Current Maturities of Long Term Loans · Current Maturities of Long Term Auto Loan	75.000 6.384	75.000 1.093	75.000 0.000
Total	81.384	76.093	75.000
Cash generated from operations	1925.341	697.216	126.619
Net cash flow from operating activity	1462.622	457.428	(39.221)

QUARTERLY RESULTS

PARTICULARS	Unaudited	Unaudited	Unaudited
	30.06.2017	30.09.2017	31.12.2017
	1 Quarter	2 Quarter	3 Quarter
Net Sales	5765.970	2168.680	3575.610
Total Expenditure	5334.500	1918.330	3209.200
PBIDT (Excl OI)	431.470	250.350	366.410
Other Income	6.920	7.100	4.890
Operating Profit	438.390	257.450	371.300
Interest	107.980	113.110	117.330
Exceptional Items	NA	NA	NA
PBDT	330.420	144.340	253.970
Depreciation	24.980	26.120	27.970
Profit Before Tax	305.440	118.220	226.000
Tax	106.800	35.000	79.240
Provisions and contingencies	NA	NA	NA
Profit After Tax	198.640	83.220	146.760

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	9.28	4.05	125.38
Account Receivables Turnover (Income / Sundry Debtors)	39.32	90.17	2.91
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	853.48	995.96	600.02
Inventory Turnover (Operating Income / Inventories)	0.52	0.30	0.33
Asset Turnover (Operating Income / Net Fixed Assets)	2.67	1.32	1.63

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.69	0.70	0.69
Debt Equity Ratio (Total Liability / Networth)	0.67	1.04	1.06
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.26	2.35	2.34
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.20	0.25	0.26
Interest Coverage Ratio (PBIT / Financial Charges)	4.41	2.21	2.53

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	5.78	3.21	4.26
Return on Total Assets ((PAT / Total Assets) * 100)	%	7.43	2.74	4.13
Return on Investment (ROI) ((PAT / Networth) * 100)	%	24.72	9.49	14.49

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.34	1.33	1.34
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.89	0.86	0.78
G-Score Ratio Financial (Networth / Total Assets)	0.30	0.29	0.28
G-Score Ratio Debt (Debts / Equity Capital)	27.70	65.61	63.06
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.34	1.33	1.34

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

STOCK PRICES

Face Value	INR 2/-
Market Value	INR 381.25/-

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	48.447	48.447	96.894
Reserves & Surplus	2820.387	3018.089	3899.178
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2868.834	3066.536	3996.072
long-term borrowings	206.250	136.479	81.565
Short term borrowings	2773.868	2965.870	2521.133
Current maturities of long-term debts	75.000	76.093	81.384
Total borrowings	3055.118	3178.442	2684.082
Debt/Equity ratio	1.065	1.036	0.672

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	9758.160	9069.425	17096.094
		-7.058	88.503

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	9758.160	9069.425	17096.094
Profit	415.673	290.997	987.846
	4.26%	3.21%	5.78%

LEGAL CASES

Case Details

Bench:-Bombay

Presentation Date:-				23/06/2016
Lodging No.:-	STRL/479/2016	Filing Date:-	23/06/2016	Reg No.:STR/15/2018	Reg Date:	16.02.2018

Petitioner:-

THE COMMISSIONER OF SALES TAX MAHARASHTRA

Respondent:-

THE INDIAN HUME CO. LTD.

District:-

MUMBAI

Bench:-	DIVISION
Status:-	Pre-Admission	Category:-	SALES TAX REFERENCES.

Act :-

Sales Tax Act 1979

Case Details

Bench:-Bombay

Presentation Date:-				23/06/2016
Lodging No.:-	STRL/36/2016	Filing Date:-	23/06/2016	Reg No.:STR/30/2017	Reg Date:	11.05.2017

Petitioner:-

THE ADDITIONAL COMMISSIONER OF SALES TAX VAT-III, MAHARASHTRA ESTATE-

Respondent:-

THE INDIAN HUME PIPE COMPANY LIMITED

Petn.Adv.:-

GOVERNMENT PLEADER ORIGINAL SIDE MUMBAI (I5024)

Resp.Adv.:-

0 (0)

District:-

MUMBAI

Bench:-	DIVISION
Status:-	Pre-Admission	Category:-	SALES TAX REFERENCES.

Act :-

Sales Tax Act 1979

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	No
8	Designation of contact person	No
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	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

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT:

They all know that water is a prime natural resource and a basic human need for survival and existence. Indeed water is fundamental to our life. In view of the vital importance of water for human, animal and plant life, for maintaining ecological balance and for economic and developmental activities of all kinds and considering its increasing scarcity, the planning and management of this resource and its optimal economical and equitable use has become a matter of national importance.

The Company has been in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development for drinking water supply projects, irrigation projects, Hydro Electric Projects, Sanitation and Sewerage Systems. For over three decades as a part of nation building, The Company has also been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.

Outlook:

During the last decade, Urban area limits are spreading wider and wider to peripheral areas, but at the same time, the basic amenities like Water Supply, Drainage, etc are not keeping pace with the requirement of more and more urbanization. Apart from the above, most of the rural areas in India fall short of access to drinking water. Government of India, State Governments and local bodies are making best efforts to supply safe drinking water. Hence number of water supply schemes are under anvil. Further to make cities and rural areas under more hygienic conditions and endeavour towards Swachha Bharat number of sewerage disposals and drainage schemes are also coming up. Considering the above factors, outlook for the Company in water supply, sewerage and drainage segments is encouraging and good.

PERFORMANCE REVIEW:

The Company’s operations of its various projects under execution continued to be profitable, with continued efforts to reduce costs and improve yield as also bettering the productivity levels. During the year, the revenue from operations has gone up by 91.66% to INR 17995.410 million as compared to INR 9389.391 million of the previous year. The profit after tax for the year at INR 987.846 million was much higher by 239.47% as compared to INR 290.997 million of the previous year. No material changes and commitments have occurred after the close of the financial year till the date of this Report, which affect the financial position of the Company.

UNSECURED LOAN

Particular	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Short-term borrowings
Short-term loans from Banks
HDFC Bank Limited	200.000	200.000
Doha Bank QSC	250.000	250.000
The Federal Bank Limited	250.000	0.000
Bank of Bahrain and Kuwait BSC	250.000	0.000
Invoice Discounting Facility from HDFC Bank Limited	0.000	14.267
Total	950.000	464.267

INDEX OF CHARGES

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G74448697	100149009	THE SARASWAT CO-OPERATIVE BANK LIMITED	11/01/2018	-	-	939874.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
2	G74449893	100149012	THE SARASWAT CO-OPERATIVE BANK LIMITED	11/01/2018	-	-	1037986.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
3	G74407370	100148872	THE SARASWAT CO-OPERATIVE BANK LIMITED	11/01/2018	-	-	1523900.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
4	G74408741	100148877	THE SARASWAT CO-OPERATIVE BANK LIMITED	11/01/2018	-	-	1523900.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
5	G74097791	100148147	THE SARASWAT CO-OPERATIVE BANK LIMITED	01/01/2018	-	-	1132838.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
6	G67342584	100136234	THE SARASWAT CO-OPERATIVE BANK LIMITED	22/11/2017	-	-	1317347.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
7	G63853055	100135306	THE SARASWAT CO-OPERATIVE BANK LIMITED	07/11/2017	-	-	779693.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
8	G61698668	100133291	THE SARASWAT CO-OPERATIVE BANK LIMITED	25/10/2017	-	-	844518.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
9	G56860927	100127952	THE SARASWAT CO-OPERATIVE BANK LIMITED	04/10/2017	-	-	1517300.0	MITTAL COURT, A-WINGVIDHAN BHAVAN MARG, NARIMAN POINT MUMBAI-400021 MAHARASHTRA INDIA
10	G31461163	100068205	KOTAK MAHINDRA PRIME LIMITED	29/11/2016	-	-	998999.0	27BKC, C 27, G BLOCKBANDRA KURLA COMPLEX, BANDRA (E),MUMBAI-400051 MAHARASHTRA INDIA

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Guarantees given by the Banks	1421.910	1187.092
Claims against the company not acknowledged as debts	8.979	12.059
Sales Tax / VAT demand under appeal	381.969	378.689
Demands raised by Excise department excluding interest, if any, leviable thereon.	113.900	151.389
Service Tax demand under appeal	1274.860	1271.782
Bill discounted under letter of credit & remaining unpaid at the date of Balance Sheet	186.874	85.307

The Management believes that the outcome of any pending litigation will not have a material adverse effect on the Company’s financial position and the results of operations.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2017

[INR IN MILLION]

PARTICULARS
	Quarter ended		9 Months
	31.12.2017	30.09.2016	31.12.2016
	[Unaudited]	[Unaudited]	[Unaudited]
1. Income from Operations
Net Sales/income from operations	3575.606	2168.683	11510.262
Other Operating Income	4.892	7.096	18.909
Total income from operations (net)	3580.498	2175.779	11529.171
Expenses
Cost of materials consumed	319.509	345.753	1085.981
Purchases of stock-in trade	-	-	-
Changes in inventories of finished goods. work-in-progress and stock in trade	121.914	(40.597)	83.125
Construction expenses	2459.47	1299.585	7741.978
Manufacturing and other expenses	38.709	36.994	115.796
Employee benefits expense	175.704	159.446	512.072
Excise duty and taxes	14.689	26.968	362.548
Finance cost	117.333	113.107	338.417
Depreciation and Amortization Expenses	27.967	26.123	79.069
Other Expenses	79.204	90.18	560.531
Total expenses	3354.499	2057.559	10879.517
Profit/ (Loss) from ordinary activities before exceptional items	225.999	118.220	649.654
Exceptional items	-	-	-
Profit/ (Loss) from ordinary activities before tax	225.999	118.220	649.654
Tax expenses	79.239	35.005	221.044
Net Profit / (Loss) from ordinary activities after tax	146.760	83.215	428.610
Extraordinary item (net of tax expense)	-	-	-
Net Profit / (Loss) for the period	146.760	83.215	428.610
Other comprehensive income for the period	1.102	(2.756)	(4.830)
Total comprehensive income for the period	147.862	80.459	423.780
Paid up equity share capital (Face Value of INR 2/-each)	96.864	96.894	96.894
Earnings per share (before extraordinary items) of INR 2/- each (not annualized):
(a) Basic	3.03*	1.72	8.85
(b) Diluted	3.03*	1.72	8.85

Note:

1) The financial results of the Company have been prepared in accordance with Indian Accounting Standards (IND AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time. The Company adopted IND AS from April 1, 2017, and accordingly, these financial results (including corresponding quarter and nine months ended December 31, 2016) have been prepared in accordance with the recognition and measurement principles in IND AS 34 - Interim Financial Reporting, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India.

2) The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 8, 2018. In compliance with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, a limited review of the above results has been carried out by the Statutory Auditors. 

3) The Company is engaged in the construction activities. The margins in the quarterly results vary based on the nature, type and quantum of project work executed during the quarter. Due to this reason, quarterly results may vary in different quarters and may not be indicative of annual results. 

4) The Government of India introduced the Goods and Service Tax (GST) with effect from July 1, 2017. GST is collected on behalf of the Government and no economic benefit flows to the entity and hence Gross Revenue under GST regime is presented excluding GST as per IND AS 18 – Revenue. However, Gross Revenue under pre-GST regime included Excise Duty which is now subsumed in GST. Consequently, the figures for the quarter and nine months ended December 31, 2017 are not comparable with the previous periods presented in the results. 

5) In respect of certain ‘Works Contracts’ executed in earlier years in the State of Rajasthan, the Company had paid sales tax using Exemption Fee (Composition) Scheme under Rajasthan Sales Tax Law on such ‘Works Contracts’ based on certain rules notified under the Sales Tax Act then prevailing. The Sales Tax Department had since challenged the Company’s position and claimed that such ‘Works Contracts’ be treated as a divisible contracts and be subjected to tax component-wise and had accordingly raised a demand, which was challenged by the Company. The Company had also filed a Special Leave Petition with the Hon’ble Supreme Court, against the common final judgment Order dated February 13, 2015 passed by the Hon’ble High Court of Rajasthan. Subsequently the Hon’ble Supreme Court rejected the appeal filed by the Company by Order dated August 28, 2017. The Company, based on legal advice, has filed an application seeking recall of the said order. Pending outcome of the ‘recall application’, on a prudent basis, the Company has made a provision of INR 303.300 million against sales tax demand (including interest thereon of INR 213.200 Million) under the item 2(j) in the results of the nine months ended December 31, 2017. For admission of recall petition, hearing in Hon’ble Supreme Court of India is expected shortly. 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2017

Particulars	Quarter Ended		9 Months
	31.12.2017	30.09.2017	31.12.2017
	[Unaudited]	[Unaudited]	[Unaudited]
Segment Revenue
a. Construction contracts of Water supply schemes, pipe supply and laying projects	3437.282	2124.281	11284.653
b Others	138.324	44.402	225.609
Total	3575.606	2168.683	11510.262
Segment Result
Profit before tax and interest from each segment
a. Construction contracts of Water supply schemes, pipe supply & laying projects	409.274	290.256	1199.314
b Others	14.507	6.224	29.960
Total	423.781	296.480	1229.274
Less : Finance Cost	117.333	113.107	338.471
Lees/Add: Excess of unallocable expenditure over unallocable (Income)	80.449	65.153	241.203
Profit from ordinary activities before tax	225.999	118.220	649.654
Capital Employed (Segment Assets)
a. Construction contracts of Water supply schemes, pipe supply & laying projects	14284.136	14290.976	14284.136
b Others	193.124	268.165	193.124
Unallowable Corporate assets	650.591	290.290	650.591
Total	15127.851	14849.431	15127.851
Capital Employed Segment Liabilities
a. Construction contracts of Water supply schemes, pipe supply & laying projects	6578.310	6037.958	6578.310
b Others	197.244	258.069	197.244
Unallowable Corporate assets	4061.726	4410.695	4061.726
	10837.280	10706.722	10837.280
Capital Employed
a. Construction contracts of Water supply schemes, pipe supply & laying projects	7705.826	8253.018	7705.826
b Others	(4.120)	10.096	(4.120)
Unallowable capital employed	(3411.135)	(4120.405)	(3411.135)
	4290.571	4142.709	4290.571

FIXED ASSETS

Tangible Assets

· Free hold Land

· Lease hold Land

· Buildings

· Plant, Machinery and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

Intangible Assets

· Computer Software

· Patents

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 64.82
UK Pound	1	INR 79.94
Euro	1	INR 90.66

INFORMATION DETAILS

Information Gathered by :	NYT
Analysis Done by :	NYT
Report Prepared by :	RKI

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.