MIRA INFORM REPORT

Report No. :	486143
Report Date :	15.01.2018

IDENTIFICATION DETAILS

Name :	LAKSHMI MACHINE WORKS LIMITED
Registered Office :	Perianaickenpalayam, Variety Hall Road, SRK Vidyalaya Post, Coimbatore – 641020, Tamilnadu
Tel. No.:	91-422-2692371/72/3022255
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	14.09.1962
Com. Reg. No.:	18-000463
Capital Investment / Paid-up Capital :	INR 109.555 Million
CIN No.: [Company Identification No.]	L29269TZ1962PLC000463
IEC No.:	0488001544
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACL5244N
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 manufacturing of textile spinning machinery, CNC Machine Tools, Heavy castings and parts and components for Aero space industry (Registered Activity)
No. of Employees :	3400 (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++	Minimum Risk	Business dealings permissible with minimum risk of default

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject was incorporated in the year 1962 and it is engaged in the manufacturing and selling of textile spinning machinery and CNC machinery tools and components. As per financials of March 2017, the company has registered decline in its revenue as compared to its previous year’s revenue and has reported decent profit margin of 7.84%. Rating takes into consideration the company’s long established track record of business operations marked by healthy net worth base along with low solvency indicators due zero debt balance sheet and good liquidity position. Rating also takes into account the extensive industry experience of its promoters in machinery segment and healthy operating efficiencies. Shares are quoted very high on Stock Exchanges. (Shares are traded at a price of INR 6389 against its face value of INR 10 on BSE.) As per quarterly financials of September 2017, the company has achieved revenue of INR 5730.38 million and has reported decent profit margin of 8.07%. Payments are reported to be regular as per commitments. In view of aforesaid, the company can be considered good for business dealings at normal 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2016.

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 15.01.2018

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-cooperative (Tel No.:91-422-3022255)

LOCATIONS

Registered Office/ Factory 1 :	Perianaickenpalayam, Variety Hall Road, SRK Vidyalaya Post, Coimbatore – 641020, Tamilnadu, India
Tel. No.:	91-422-2692371/72/3022255
Fax No.:	91-422-2692541/42
E-Mail :	regd.off@lmw.co.in duraisami.k@lmw.co.in
Website :	www.lakshmimach.com
Locality :	Commercial cum Industrial
Corporate Office :	34-A, Kamaraj Road, Coimbatore – 641018, Tamilnadu, India
Tel. No.:	91-422-2221680/ 82-87/ 3028100
Fax No.:	91-422-2220912
E-Mail :	corp.off@lmw.co.in secretarial@lmw.co.in investorscell@lmw.co.in
Factory 2:	Kaniyur, Coimbatore – 641658, Tamilnadu, India
Tel. No.:	91-421-3983000
Fax No.:	91-421-2333270
Factory 3:	Muthugoundenpudur, Coimbatore - 641406, Tamilnadu, India
Factory 4:	Wind Mill Division Udumalpet (TK), Tirupur District, Tamilnadu, India
Factory 5:	Machine Tool Division, Foundry Division and Machine Shop Arasur, Coimbatore – 641407, Tamilnadu, India
Tel No:	91-421-3021300 / 3022537 / 3983000/ 3022553/ 3022511
Fax No.:	91-421-2360029 / 3022577
E mail:	mtd_markteting@lmw.co.in mtd@lmw.co.in foundary@lmw.co.in
Factory 6:	Advanced Technology Centre and Basic Training Division Ganapathy, Coimbatore - 641006, Tamilnadu, India

DIRECTORS

As on 31.03.2017

Name :	Mr. Sanjay Jayavarthanavelu
Designation :	Managing Director
Address :	"Shell House", No.695, Avanashi Road, Coimbatore – 641037, Tamilnadu, India
Date of Appointment :	24.02.1993
DIN No.:	00004505
Name :	Mr. Soundharrajhan
Designation :	Whole Time Director
Address :	12, North End Road, Krishnaswamy Nagar, Ramanathapuram Coimbaotre 641045
Date of Appointment :	01.11.2017
DIN No.:	07594186
Name :	Mr. Pathy Sundaram
Designation :	Director
Address :	Rasakondalu Circuit House Road, Coimbatore – 641018, Tamilnadu, India
Date of Appointment :	21.03.1973
DIN No.:	00013899
Name :	Mr. Aditya Himatsingka
Designation :	Director
Address :	129, 10th Main Road , 6th A Cross, RMV Extension, Bangalore – 560080, Karnataka, India
Date of Appointment :	25.10.2010
DIN No.:	00138970
Name :	Mr. Mukund Govind Rajan
Designation :	Director
Address :	202 A, Baktavar Lower Colaba Road, Mumbai – 400005, Maharashtra, India
Date of Appointment :	25.10.2010
DIN No.:	00141258
Name :	Mr. Basavaraju
Designation :	Director
Address :	# 2,Old No 9,2nd Cross Shanakarapuram, Basavanagudi, Bangalore- 560004, Karnataka, India
Date of Appointment :	30.10.2006
DIN No.:	01252772
Name :	Ms. Chitra Venkataraman
Designation :	Director
Address :	Old No.17-B, New No.31, 4th Main Road, R.A. Puram, Chennai – 600028, Tamilnadu, India
Date of Appointment :	02.02.2015
DIN No.:	07044099
Name :	Mr. Sathyakumar Veeraraghavan
Designation :	Nominee Director
Address :	B.3, Jeevan Asha, LIC Officers QTRS, Mission Hospital Road, Udupi – 576101, Karnataka, India
Date of Appointment :	25.01.2013
DIN No.:	06477636
Name :	Mr. Arun Alagappan
Designation :	Director
Address :	17, Chittaranjan Road, Teynampet, Chennai -600018, Tamilnadu, India
Date of Appointment :	26.10.2016
DIN No.:	00291361

KEY EXECUTIVES

Name :	Mr. Coimbatore Ramanathan Shivkumaran
Designation :	Company Secretary
Address :	New No.33/8, Old No.16/8, Ramhari Apartment, 5th Trust Cross St., Mandavelipakkam Chennai 600028, Tamilnadu, India
Date of Appointment :	04.11.2016
PAN No.:	ADQPK6039E
Name :	Mr. Balasubramaniam Chandrasekar
Designation :	Chief Finance Officer
Address :	117-A, Sathyamoorthy Street, Coimbatore North, Coimbatore – 641009, Tamilnadu, India
Date of Appointment :	20.08.2015
PAN No.:	AAIPC9346H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on December, 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 % of
(A) Promoter and Promoter Group	3293955	30.07
(B) Public	7661549	69.93
Grand Total	10955504	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

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
A1) Indian
Individuals/Hindu undivided Family	302327	2.76
D THAYARAMMAL	7920	0.07
UTTARA R	44290	0.40
S PATHY	1420	0.01
NETHRA J S KUMAR	720	0.01
J RAJYALAKSHMI	97980	0.89
RAVI SAM	5866	0.05
K SUNDARAM	1220	0.01
SANJAY JAYAVARTHANAVELU	142291	1.30
D. SENTHILKUMAR	160	0.00
JAIDEV JAYAVARTHANAVELU	460	0.00
Any Other (specify)	2991628	27.31
ESHAAN ENTERPRISES LIMITED	127110	1.16
LAKSHMI PRECISION TOOLS LIMITED	15000	0.14
LAKSHMI RING TRAVELLERS (CBE) LIMITED	252180	2.30
LAKSHMI ELECTRICAL CONTROL SYSTEMS	88800	0.81
LAKSHMI CARGO COMPANY LTD	1074468	9.81
LAKSHMI TECHNOLOGY AND ENGINEERING	667090	6.09
LAKSHMI ELECTRICAL DRIVES LIMITED	17500	0.16
THE LAKSHMI MILLS COMPANY LIMITED	520000	4.75
SUPER SALES INDIA LIMITED	229480	2.09
Sub Total A1	3293955	30.07
A2) Foreign		0.00
A=A1+A2	3293955	30.07

Statement showing shareholding pattern of the Public shareholder

Category & Name of the Shareholders	No. of fully paid up equity shares held	Shareholding % calculated as per SCRR, 1957 As a %
B1) Institutions
Mutual Funds/	1012907	9.25
HDFC TRUSTEE COMPANY LTD - A/C HDFC MID	388690	3.55
FRANKLIN INDIA SMALLER COMPANIES FUND	143060	1.31
L AND T MUTUAL FUND TRUSTEE LTD-L AND T	340283	3.11
Financial Institutions/ Banks	12740	0.12
Insurance Companies	1208983	11.04
LIFE INSURANCE CORPORATION OF INDIA	784414	7.16
THE NEW INDIA ASSURANCE COMPANY LIMITED	367341	3.35
Any Other (specify)	615332	5.62
Foreign Financial Institutions	300	0.00
Foreign Portfolio Investment-Corporates	615032	5.61
PINEBRIDGE INVESTMENTS GF MAURITIUS	451519	4.12
Sub Total B1	2849962	26.01
B2) Central Government/ State Government(s)/ President of India	0	0.00
Central Government/ State Government(s)/ President of India	22194	0.20
Sub Total B2	22194	0.20
B3) Non-Institutions	0	0.00
Individual share capital upto INR 0.200 million	1663796	15.19
Individual share capital in excess of INR 0.200 million	931655	8.50
NEMISH S SHAH	534673	4.88
REKHA N SHAH	157014	1.43
Any Other (specify)	2193942	20.03
Bodies Corporate	1542142	14.08
ICICI PRUDENTIAL LIFE INSURANCE COMPANY	265817	2.43
GAGANDEEP CREDIT CAPITAL PVT LTD	157800	1.44
VOLTAS LIMITED	579672	5.29
CLARICENT ADVISORY SERVICES LLP	141890	1.30
Trusts	7200	0.07
Foreign Individuals	240	0.00
NRI – Non- Repat	51881	0.47
NRI – Repat	69357	0.63
Clearing Members	27807	0.25
HUF	495315	4.52
NEMISH S SHAH	354200	3.23
Sub Total B3	4789393	43.72
B=B1+B2+B3	7661549	69.93

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing of textile spinning machinery, CNC Machine Tools, Heavy castings and parts and components for Aero space industry (Registered Activity)

Products :

NIC Code No.	Product Description
28261	Spinning Preparatory and Yarn Making Machinery
28221	Machine Tools

Brand Names :

Not Available

Agencies Held :

Not Available

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 :

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

No. of Employees :

3400 (Approximately)

Bankers :

• Indian Bank
• Bank of Baroda
• Indian Overseas Bank
• Citibank N.A.
• HDFC Bank
• IDBI Bank
• Standard Chartered bank
• HSBC Bank

Auditor :
Name :	S. Krishnamoorthy and Company Chartered Accountants
Address :	Kanapathy Towers, III Floor,No.1391/A-1, Sathy Road, Ganapathy, Coimbatore- 641006, Tamilnadu, India
Tel No.:	91-422-4039900
Email:	skmcoca@skmcoca.com
Statutory Auditor :
Name :	Subbachar and Srinivasan Chartered Accountants
Address :	Coimbatore, Tamilnadu, India
Secretarial Auditor
Name :	M.D. Selvaraj Practicing Company Secretary
Address :	Coimbatore, Tamilnadu, India
Memberships :	Not Available
Collaborators :	Not Available
Wholly Owned Subsidiary	LMW Textile Machinery (Suzhou) Company Limited
Post employment benefit plans:	Lakshmi Machine Works Limited Employees’ Gratuity Fund
Other Related Parties :	Dhanuprabha Agro Private Limited Eshaan Enterprises Limited Harshini Textiles Limited Hermes Academy of Training Limited Lakshmi Card Clothing Private Limited Lakshmi Cargo Company Limited LCC Cargo Holdings Limited Lakshmi Caipo Industries Private Limited Lakshmi Energy and Environmental Designs Private Limited Lakshmi Electrical Drives Limited Lakshmi Technology & Engg. Industries Private Limited Lakshmi Ring Travellers (CBE) Limited Lakshmi Electrical Control Systems Limited Lakshmi Precision Tools Limited Lakshmi Life Sciences Limited Mahalakshmi Engineering Holdings Limited; Quattro Engineering India Limited Rajalakshmi Engineering; Revantha Holdings Limited Revantha Services Private Limited Revantha Agro FarmsPrivate Limited Sowbarnika Enterprises Private Limited Sowbarniha Resorts Private Limited Sri Kamakoti Kamakshi Textiles Private Limited Sri Lakshmi Vishnu Plastics Sudhasruti Agro Private Limited Super Sales India Limited Supreme Dairy Products India Private Limited Starline Travels Limited Titan Paints & Chemicals Limited The Lakshmi Mills Company Limited Venkatavaradha Agencies Private Limited Walzer Hotels Private Limited

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	INR 10/- each	INR 500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10955504	Equity Shares	INR 10/- each	INR 109.555 Million

Fully paid up equity shares	Number of Shares
Balance as on March 31, 2017	10955504

The company has issued only one class of Equity share having a par value of INR 10 per share. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

311,000 equity shares of INR 10 each (representing 2.76% of the total number of paid up equity shares of the company) was bought back from the shareholders of the company on proportionate basis by way of tender offer at the price of INR 4450 per share for an aggregate amount of INR 1383.950 million in accordance with the provisions of the Companies Act. 2013 and SEBI (Buyback of Securities) Regulations, 1998.The shares bought back in the current year were cancelled immediately.

Shareholders holding more than 5 percent Equity shares

Particulars	31.03.2017
	Number of shares	%
Lakshmi Cargo Company Limited	1049468	9.57
Life Insurance Corporation of India	884414	8.07
Lakshmi Technology and Engineering Industries Limited	667090	6.08
Voltas Limited	579672	5.29

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET - STANDALONE

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	109.555	112.665	112.665
(b) Reserves & Surplus	15274.713	14920.781	12492.020
(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)	15384.268	15033.446	12604.685
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	1002.129	1013.449	1344.791
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	1002.129	1013.449	1344.791
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	3270.881	2949.879	3092.019
(c) Other current liabilities	3396.567	4015.913	4073.998
(d) Short-term provisions	67.400	69.488	603.049
Total Current Liabilities (4)	6734.848	7035.280	7769.066
TOTAL	23121.245	23082.175	21718.542
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4535.917	3924.557	3660.815
(ii) Intangible Assets	86.601	84.412	80.253
(iii) Capital work-in-progress	33.420	75.640	31.011
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1262.431	1527.603	1288.293
(c) Deferred tax assets (net)	129.731	130.903	97.304
(d) Long-term Loan and Advances	0.000	0.000	236.367
(e) Other Non-current assets	1357.282	901.533	0.000
Total Non-Current Assets	7405.382	6644.648	5394.043
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3317.801	2993.475	2886.587
(c) Trade receivables	1950.933	2079.563	2205.753
(d) Cash and cash equivalents	9069.734	9558.092	9416.206
(e) Short-term loans and advances	0.000	0.000	1386.144
(f) Other current assets	1377.395	1806.397	429.809
Total Current Assets	15715.863	16437.527	16324.499
TOTAL	23121.245	23082.175	21718.542

PROFIT & LOSS ACCOUNT - STANDALONE

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	24322.571	27530.181	23848.206
	Other Income	906.025	983.697	1063.328
	TOTAL	25228.596	28513.878	24911.534
Less	EXPENSES
	Cost of Materials Consumed	15132.631	17468.443	14761.118
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	68.107	(99.278)	0.000
	Employees benefits expense	2407.450	2392.430	(93.065)
	Other expenses	4135.934	4576.206	2277.335
	Impairment loss on financial assets	23.237	6.750	4019.884
	Exceptional item	47.014	49.837	94.894
	TOTAL	21814.373	24394.388	21060.166
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	3414.223	4119.490	3851.368
Less	FINANCIAL EXPENSES	3.769	8.695	6.344
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	3410.454	4110.795	3845.024
Less/ Add	DEPRECIATION/ AMORTISATION	747.326	828.911	965.031
	PROFIT/ (LOSS) BEFORE TAX	2663.128	3281.884	2879.993
Less	TAX	757.087	1080.646	805.484
	PROFIT/ (LOSS) AFTER TAX	1906.041	2201.238	2074.509
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	13745.017	12272.293	10258.670
	INVESTMENT FLUCTUATION RESERVE	0.000	0.000	(5.675)
	APPROPRIATIONS
	Payment of dividends on equity shares	450.660	422.494	0.000
	Payment of tax on dividends	91.754	86.020	0.000
	Share buy back	1380.840	0.000	0.000
	Transfer to General Reserve	190.000	220.000	210.000
	Proposed Dividend	0.000	0.000	422.494
	Tax on Proposed Dividend	0.000	0.000	86.020
	Transfer from / (to) Investment Fluctuation Reserve	0.000	0.000	48.321
	Total	2113.254	728.514	766.835
	Balance Carried to the B/S	13537.804	13745.017	11560.669
	EARNINGS IN FOREIGN CURRENCY
	Export of goods on FOB basis	NA	NA	4941.020
	Technical Knowhow / Royalty income	NA	NA	31.297
	TOTAL EARNINGS	NA	NA	4972.317
	IMPORTS
	Raw Materials	NA	NA	564.411
	Components and Stores parts	NA	NA	1865.125
	Capital Goods	NA	NA	150.249
	TOTAL IMPORTS	NA	NA	2579.785
	Earnings / (Loss) Per Share (INR)	170.26	195.38	184.13

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	2204.043	2126.897	1937.759
Net cash flow from operating activity	1323.818	1003.431	1032.358

QUARTERLY RESULTS

Particulars	30.06.2017 (Unaudited)	30.09.2017 (Unaudited)
	1^st Quarter	2^nd Quarter
Net Sales	6961.410	5730.380
Total Expenditure	6253.960	5098.660
PBIDT (Excl OI)	707.450	631.720
Other Income	214.930	201.700
Operating Profit	922.380	833.420
Interest	0.030	3.190
Exceptional Items	(4.000)	(0.170)
PBDT	918.340	830.070
Depreciation	182.320	217.960
Profit Before Tax	647.750	700.380
Tax	185.570	224.120
Provisions and contingencies	NA	NA
Profit After Tax	476.260	462.180
Extraordinary Items	NA	NA
Prior Period Expenses	NA	NA
Other Adjustments	NA	NA
Net Profit	476.260	462.180

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	29.28	27.57	33.76
Account Receivables Turnover (Income / Sundry Debtors)	12.47	13.24	10.81
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	78.89	61.64	76.46
Inventory Turnover (Operating Income / Inventories)	1.03	1.38	1.33
Asset Turnover (Operating Income / Net Fixed Assets)	0.73	1.01	1.02

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.29	0.30	0.36
Debt Equity Ratio (Total Liability / Networth)	0.00	0.00	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.44	0.47	0.62
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.30	0.27	0.30
Interest Coverage Ratio (PBIT / Financial Charges)	905.87	473.78	607.09

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	7.84	8.00	8.70
Return on Total Assets ((PAT / Total Assets) * 100)	%	8.24	9.54	9.55
Return on Investment (ROI) ((PAT / Networth) * 100)	%	12.39	14.64	16.46

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	2.33	2.34	2.10
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.84	1.91	1.73
G-Score Ratio Financial (Networth / Total Assets)	0.67	0.65	0.58
G-Score Ratio Debt (Debts / Equity Capital)	0.00	0.00	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	2.33	2.34	2.10

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

STOCK PRICES

Face Value	INR 10/-
Market Value	INR 6389 (BSE)

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	112.665	112.665	109.555
Reserves & Surplus	12492.020	14920.781	15274.713
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	12604.685	15033.446	15384.268
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	23848.206	27530.181	24322.571
		15.439	(11.651)

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	23848.206	27530.181	24322.571
Profit	2074.509	2201.238	1906.041
	8.70%	8.00%	7.84%

ABRIDGED BALANCE SHEET - CONSOLIDATED

SOURCES OF FUNDS	31.03.2017	31.03.2016
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	109.555	112.665
(b) Reserves & Surplus	15474.458	15231.977
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	15584.013	15344.642
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	1002.129	1013.449
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1002.129	1013.449
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	3449.691	3328.428
(c) Other current liabilities	3564.859	4216.873
(d) Short-term provisions	67.400	69.488
Total Current Liabilities (4)	7081.950	7614.789
TOTAL	23668.092	23972.880
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5113.857	4552.531
(ii) Intangible Assets	86.601	84.412
(iii) Capital work-in-progress	55.448	76.856
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2103.474	1849.011
(c) Deferred tax assets (net)	129.731	130.903
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	7489.111	6693.713
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	3639.603	3387.112
(c) Trade receivables	1900.697	2364.476
(d) Cash and cash equivalents	9229.506	9675.137
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	1409.175	1852.442
Total Current Assets	16178.981	17279.167
TOTAL	23668.092	23972.880

PROFIT & LOSS ACCOUNT - CONSOLIDATED

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	24992.062	28630.699
	Other Income	884.521	932.650
	TOTAL	25876.583	29563.349
Less	EXPENSES
	Cost of Materials Consumed	15579.692	18145.935
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	88.023	(152.921)
	Employees benefits expense	2516.645	2525.849
	Other expenses	4213.875	4734.622
	Impairment loss on financial assets	3.934	0.154
	Exceptional Item	47.014	49.836
	TOTAL	22449.183	25303.475
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	3427.400	4259.874
Less	FINANCIAL EXPENSES	4.194	10.212
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	3423.206	4249.662
Less/ Add	DEPRECIATION/ AMORTISATION	798.739	881.091
	PROFIT/ (LOSS) BEFORE TAX	2624.467	3368.571
Less	TAX	760.390	1095.212
	PROFIT/ (LOSS) AFTER TAX	1864.077	2273.359
	Earnings / (Loss) Per Share (INR)	166.51	201.78

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	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

The company is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The address of its registered office and principal place of business are disclosed in the introduction to the Annual report. Its shares are listed on two stock exchanges in India, the National Stock Exchange of India [NSE] and the Bombay Stock Exchange [BSE]. The company is engaged in the manufacturing and selling of textile spinning machinery, CNC Machine Tools, Heavy castings and parts and components for Aero space industry. The company caters to both domestic and international markets. The financial statements are approved for issue by the Company’s Board of

AWARDS

During the year 2016-17 the Company has bagged the following Awards:

1. Star Performer Award for the year 2014-15 at the 47th EEPC India National Award.

2. Star Performer Award for the year 2015-16 at the 48th EEPC India National Award.

3. TMMA’s APEX Export Award for Textile Machinery & Parts during 2015-16.

INDEX OF CHARGES

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Amount	Address
1	Y10088141	90008971	THE SOUTH INDIAN BANK LTD.	28/03/2002	-	22174000.0	RAJA STREET COIMBATORE TAMILNADU INDIA
2	Y10084161	90005083	LLOYODS FINANCE LTD.	15/06/1998	-	3847108.0	53; THIRUVENKATASWAMY ROADR.S. PURAM COIMBATORE TAMILNADU641002 INDIA
3	Y10082308	90003230	INDIA CEMENTS CAPITAL FINANCE LTD.	25/02/1998	-	1000000.0	39 ; STATE ; STERLING ROAD CHENNAI TAMILNADU 600034 INDIA
4	Y10084150	90005072	VIJAYA BANK	12/12/1997	-	25000000.0	OPPANAKKARA STREETCOIMBATORE BRANCH COIMBATORE TAMILNADU INDIA
5	Y10084138	90005060	INDUSTRIAL DEVELOPMENT BANK OF INDIA	13/06/1997	19/06/1997	80000000.0	IDBI TOWERCUFFE PARADE MUMBAI MH 400005 INDIA
6	Y10087588	90008418	SYNDICATE BANK	23/09/1996	29/06/1998	32000000.0	OPPANAKARA STREET COIMBATORE TAMILNADU 641001 INDIA
7	Y10084120	90005042	ELGI FINANCE LTD.	07/09/1996	-	5500000.0	ELGI HOUSETRICHY ROAD COIMBATORE TAMILNADU 641045 INDIA
8	Y10084111	90005033	INDUSTRIAL DEVELOPMENT BANK OF INDIA	21/12/1995	-	100000000.0	IDBI TOWERCUFFE PARADE MUMBAI MH 400005 INDIA
9	Y10084100	90005022	ELGI FINANCE LTD.	16/08/1995	-	5500000.0	ELGI HOUSETRICHY ROAD COIMBATORE TAMILNADU 641045 INDIA
10	Y10087431	90008261	SYNDICATE BANK	18/03/1995	13/08/1996	40000000.0	OPPANAKARA STREET COIMBATORE TAMILNADU 641001 INDIA

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2017

(INR In Million)

	Particulars	Quarter Ended		Half Year ended
		30.09.2017	30.06.2017	30.09.2017
	Income from Operations
	Revenue from Operations	5730.384	6961.410	12691.794
	Other Income	201.701	214.927	416.628
Total Income from Operations (Net)		5932.085	7176.337	13108.422
Expenses
	Cost of Materials consumed	3289.063	4703.257	7992.320
	Purchase of Stock-in-trade	-	-	-
	Changes in inventories of finished goods, work-in-progress and stock-in-trade	246.644	(329.598)	(82.954)
	Employee benefit expenses	615.671	649.321	1264.992
	Finance costs	3.185	0.028	3.213
	Depreciation and amortization expense	182.321	217.962	400.282
	Other expenses	947.285	1230.985	2178.271
Total Expenses		5284.169	6471.955	11756.124
	Profit /(Loss) before exceptional items and tax	647.916	704.382	1352.298
Exceptional Items		0.169	4.002	4.171
Profit /(Loss) from ordinary activities before tax		647.747	700.380	1348.127
Tax Expense		185.570	224.122	409.692
Net Profit /(Loss) from ordinary activities after tax		462.177	476.258	938.435
Other Comprehensive Income/ (Loss) After Tax		(24.343)	69.900	45.557
Total comprehensive income for the period (Comprising Profit for the period) (after tax) and other comprehensive income (after tax)		437.834	546.158	983.992
Paid up equity share capital (Eq. shares of INR 10/- each)		109.555	109.555	109.555
Reserve excluding revaluation reserves
	Earnings per share (before/after extraordinary items) of INR 10/- each
	Basic & Diluted	42.19	43.47	85.66

SEGMENT-WISE REVENUE, RESULT AND CAPITAL EMPLOYED

(INR In Million)

Particular	Quarter Ended	Half Year ended	Quarter Ended
	30.09.2017	30.06.2017	30.09.2017
	(Unaudited)	(Unaudited)	(Unaudited)
Segment Revenue
a. Textile Machinery Division	4554.655	6029.283	10583.937
b. Machine Tool and Foundry Division	1354.556	1106.188	2460.744
c. Advance Technology Centre	46.439	41.229	87.668
Total	5955.650	7176.700	13132.349
Less: Inter Segment Revenue	185.356	168.246	353.603
Net Sales / Income from Operations	5770.294	7008.454	12778.746
Segment Result
Profit/(Loss) before tax and Interest from each segment
a. Textile Machinery Division	429.817	455.614	885.431
b. Machine Tool and Foundry Division	154.782	122.335	277.117
c. Advance Technology Centre	(30.987)	(33.204)	(64.191)
Total	553.612	544.745	1098.357
Add : Other Un-allocable expenditure net off un-allocable income	94.135	155.635	249.770
Total Profit/(Loss) before tax	647.747	700.380	1348.127
Segment assets
a. Textile Machinery Division	18231.966	18823.274	18231.966
b. Machine Tool and Foundry Division	4154.022	3627.381	4154.022
c. Advance Technology Centre	102.912	126.166	102.912
d. Un-allocated	1667.326	1831.360	1667.326
Total	24156.226	24408.181	24156.226
Segment Liabilities
a. Textile Machinery Division	7213.985	7343.827	7213.985
b. Machine Tool and Foundry Division	973.040	814.904	973.040
c. Advance Technology Centre	55.827	88.275	55.827
d. Un-allocated	6.624	6.624	6.624
Total	8249.476	8253.63	8249.476
Capital Employed
a. Textile Machinery Division	11017.981	11479.447	11017.981
b. Machine Tool and Foundry Division	3180.982	2812.477	3180.982
c. Advance Technology Centre	47.085	37.891	47.085
d. Un-allocated	1660.702	1824.736	1660.702
Total	15906.750	16154.551	15906.750

BALANCE SHEET AS ON 30.09.2017

SOURCES OF FUNDS	30.09.2017
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	109.555
(b) Reserves & Surplus	15797.195
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	15906.750
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	449.340
(d) long-term provisions	0.000
Total Non-current Liabilities (3)	449.340
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	4083.469
(c) Other current liabilities	3606.977
(d) Short-term provisions	109.690
Total Current Liabilities (4)	7800.136
TOTAL	24156.226
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4703.286
(ii) Intangible Assets	76.410
(iii) Capital work-in-progress	19.441
(iv) Intangible assets under development	0.000
(b) Non-current Investments	1324.534
(c) Deferred tax assets (net)	133.232
(d) Long-term Loan and Advances	0.000
(e) Other Non-current assets	1045.300
Total Non-Current Assets	7302.203
(2) Current assets
(a) Current investments	0.000
(b) Inventories	3547.243
(c) Trade receivables	2089.633
(d) Cash and cash equivalents	9715.155
(e) Short-term loans and advances	0.000
(f) Other current assets	1501.992
Total Current Assets	16854.023
TOTAL	24156.226

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Contingent Liabilities and Commitments, to the extent not provided for
Letters of Credit	311.394	260.994
Bank Guarantee	573.318	179.305
Central Excise Demand	269.083	151.828
Income Tax Demand	147.171	147.171

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Office Equipments

· Vehicles

Intangible Assets:

· Technical Knowhow

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	INR
US Dollar	1	INR 63.39
UK Pound	1	INR 85.74
Euro	1	INR 76.25

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	VIV
Report Prepared by :	RKI

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--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.

·