MIRA INFORM REPORT

Report No. :	516487
Report Date :	27.06.2018

IDENTIFICATION DETAILS

Name :	HINDUSTAN CONSTRUCTION COMPANY LIMITED
Registered Office :	Hincon House, 11^th Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400083, Maharashtra
Tel. No.:	91-22-25751000
Country :	India
Financials (as on) :	31.03.2018
Date of Incorporation :	27.01.1926
Capital Investment / Paid-up Capital :	INR 1015.500 Million
CIN No.: [Company Identification No.]	L45200MH1926PLC001228
TIN/CST No.:	27880298806
PAN No.: [Permanent Account No.]	AAACH0968B
GSTN : [Goods & Service Tax Registration No.]	27AAACH0968B1ZW [Mumbai] 19AAACH0968B1ZT [West Bengal] 37AAACH0968B1ZV [Gajuwaka] 36AAACH0968B1ZX [Telangana] 07AAACH0968B1ZY [Delhi] 01AAACH0968B1ZA [Jammu and Kashmir] 14AAACH0968B1Z3 [Manipur] 18AAACH0968B1ZV [Assam]
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 providing engineering and construction services. (Registered Activity)
No. of Employees :	1581 (Approximately)

RATING & COMMENTS

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

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company incorporated in the year 1926. It has a long track record in the construction industry. For the financial year 2018, the company has increased in its revenue from operations and maintained average profit margin of 1.69% during the year. However, as per indirect sources we could find that company has delayed in its debt servicing. Further, rating constrained on account of huge sizeable debt repayments have affected the liquidity profile of the company leading to continued delays in servicing of debt obligations by the company. The liquidity position of the company is constrained owing to stretched recoveries from customers, pending receipt of claim amounts from customers, high finance cost and limited profits earned by the company thereby leading to stress on the debt service indicators. As per investigation and from external sources we are able to find that, the operational efficiency of the company is improving on account of increase in income from operations backed by faster order execution. Business is active. Payments are reported to be slow. In view of the aforesaid, the company can be considered for business dealings on safe and secure 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 (31.12.2017)	Current Rating (01.04.2018)
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 = D
Rating Explanation	Lowest-credit-quality and very low prospects of recovery
Date	15.05.2018

Rating Agency Name	CARE
Rating	Short Term Rating = D
Rating Explanation	Lowest-credit-quality and very low prospects of recovery
Date	15.05.2018

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 31-03-2018.

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 27.06.2018

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

Management non-cooperative (Tel No.:91-22-25751000)

LOCATIONS

Registered Office :	Hincon House, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400083, Maharashtra, India
Tel. No.:	91-22-25751000
Fax No.:	91-22-25775732
E-Mail :	corpcomm@hccindia.com venkatesan.a@hccindia.com contactus@hccindia.com
Website :	http://www.hccindia.com
Delhi Office :	706-707, 7th Floor, Surya Kiran, 19, KG Marg, New Delhi – 110001, India
Tel. No.:	91-11-23358717/ 23358727
Fax No.:	91-11-23358837
Site Address:	Located at : Assam Bihar Jharkhand Orissa Sikkim West Bengal Haryana Himachal Pradesh Jammu Kashmir New Delhi Rajasthan Uttar Pradesh Uttaranchal Andhra Paresh Karnataka Tamilnadu Gujarat Maharashtra

DIRECTORS

AS ON: 31.03.2018

Name :	Mr. Ajit Gulabchand
Designation :	Managing Director
Address :	94, NCPA Apartments, 1, Dorab Tata Road, Nariman Point, Mumbai - 400021, Maharashtra, India
Date of Appointment :	03.03.1983
DIN No.:	00010827
Name :	Ms. Shalaka Gulabchand Dhawan
Designation :	Whole-Time Director
Address :	5B, Rizvi Park, Altamount Road, Mumbai - 400026, Maharashtra, India
Date of Appointment :	30.04.2015
DIN No.:	00011094
Name :	Mr. Arjun Dhawan
Designation :	Whole Time Director
Address :	5B, Rizvi Park 5-A, Altamount Road, Mumbai – 400026, Maharashtra, India
Date of Appointment :	01.04.2017
PAN No.:	AAGPD1992A
DIN No.:	01778379
Name :	Mr. Sharad Madhav Kulkarni
Designation :	Director
Address :	161/A, Twin Towers, V.S. Road, Prabhadevi, Mumbai - 400025, Maharashtra, India
Date of Appointment :	10.08.2001
DIN No.:	00003640
Name :	Mr. Omkar Goswami
Designation :	Director
Address :	E-121, Masjid Moth, First Floor, Greater Kailash-III, New Delhi - 110048, India
Date of Appointment :	30.04.2015
DIN No.:	00004258
Name :	Mr. Rajas Ratanchand Doshi
Designation :	Director
Address :	33, Las Palmas, Little Gibbs Road, Malbar Hill, Mumbai - 400006, Maharashtra, India
Date of Appointment :	23.12.1993
DIN No.:	00050594
Name :	Mr. Ram Pravinchandra Gandhi
Designation :	Director
Address :	Amalfi, 6th Floor, 15, L.D. Ruparel Marg, Malbar Hill, Mumbai - 400006, Maharashtra, India
Date of Appointment :	26.08.1999
DIN No.:	00050625
Name :	Mr. Anil Chandanmal Singhvi
Designation :	Director
Address :	131A,Twin Towers, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025, Maharashtra, India
Date of Appointment :	27.07.2007
DIN No.:	00239589
Name :	Ms. Harsha Bhupendra Bangari
Designation :	Nominee Director
Address :	Flat No. 1102, Akruti Aditya Tower, Sloater Road, Grant Road (West), Mumbai - 400007, Maharashtra, India
Date of Appointment :	31.07.2014
DIN No.:	01807838
Name :	Mr. Ramanujacharyulu Nateri
Designation :	Director
Address :	Siddachal, Flat - 304, Building - 19 Pokharan Road No.2, Thane – 400601, Maharashtra, India
Date of Appointment :	02.05.2016
DIN No.:	02010249

KEY EXECUTIVES

Name :	Mr. Praveen Sood
Designation :	Chief Financial Officer
Address :	2103, Glencroft Building, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Appointment :	02.05.2014
PAN No.:	AFJPS0930D
Name :	Mr. Arjun Dhawan
Designation :	Chief Executive Officer
Address :	5B, Rizvi Park, 5-A Altamount Road, Mumbai -400026, Maharashtra, India
Date of Appointment :	01.04.2017
PAN No.:	AAGPD1992A
Name :	Mr. Venkatesan Arunchalam
Designation :	Company Secretary
Address :	302, Siddeshwar Height, Mogal Lane, Next To Telephone Colony, Mahim, Mumbai-400016, Maharashtra, India
PAN No.:	AFTPA1515N
Date of Appointment :	09.05.2017
Name :	Mr. Amit Uplenchwar
Designation :	Chief Executive Officer
Address :	1st Floor, Retreat-7 Unique Park Society, Satellite, Ahmedabad-380015, Gujarat, India
PAN No.:	31.01.2018
Date of Appointment :	AAOPU7158B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 31.03.2018

Category of shareholder	Total nos. shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a %
(A) Promoter & Promoter Group	281015080	27.67
(B) Public	734447846	72.33
Grand Total	1015462926	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 % of
A1) Indian
Individuals/Hindu undivided Family	2127294	0.21
Ajit Gulabchand	2117294	0.21
Shalaka Gulabchand Dhawan	10000	0.00
Any Other (specify)	278887786	27.46
Hincon Holdings Limited	216023600	21.27
Hincon Finance Limited	62261186	6.13
Shalaka Investment Pvt Limited	538000	0.05
Arya Capital Management Pvt Limited	65000	0.01
Sub Total A1	281015080	27.67
A2) Foreign		0.00
A=A1+A2	281015080	27.67

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 % of (A+B+C2)
B1) Institutions		0.00
Mutual Funds/	108515769	10.69
HDFC SMALL CAP FUND	69732622	6.87
RELIANCE CAPITAL TRUSTEE CO LIMITED -A/C RELIANCE CAPITAL BUILDER FUND - 4 - SR B	21717742	2.14
Foreign Portfolio Investors	74373328	7.32
ABU DHABI INVESTMENT AUTHORITY - LGLINV	16364000	1.61
Financial Institutions/ Banks	237905126	23.43
STATE BANK OF INDIA	29500105	2.91
IDBI BANK LIMITED .	25434620	2.50
EXPORT- IMPORT BANK OF INDIA	24251091	2.39
PUNJAB NATIONAL BANK	21955252	2.16
CANARA BANK-MUMBAI	19648966	1.93
AXIS BANK LIMITED	16366572	1.61
ICICI BANK LIMITED	14751859	1.45
UNITED BANK OF INDIA	14569452	1.43
Insurance Companies	8382144	0.83
Sub Total B1	429176367	42.26
B2) Central Government/ State Government(s)/ President of India		0.00
B3) Non-Institutions		0.00
Individual share capital up to INR 0.200 Million	215567549	21.23
Individual share capital in excess of INR 0.200 Million	13521868	1.33
NBFCs registered with RBI	453611	0.04
Any Other (specify)	75728451	7.46
Non-Resident Indian (NRI)	9398541	0.93
Trusts	11280	0.00
IEPF	1030389	0.10
HUF	10196787	1.00
Clearing Members	20982513	2.07
Director or Director's Relatives	117000	0.01
Bodies Corporate	33653375	3.31
LLP	338566	0.03
Sub Total B3	305271479	30.06
B=B1+B2+B3	734447846	72.33

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of providing engineering and construction services. (Registered Activity)

Products / Services :

NIC Code No.	Products/Services Description
42101,42201,42204	Engineering and Construction Activities

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 :

1581 (Approximately)

Bankers :

• Axis Bank Limited
• Bank of Baroda
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• DBS Bank Limited
• Export Import Bank of India
• Export Import Bank of United States
• The Federal Bank Limited
• ICICI Bank Limited
• IDBI Bank Limited
• IFCI Limited
• Indian Bank
• Indian Overseas Bank
• The Jammu & Kashmir Bank
• Oriental Bank of Commerce
• Punjab National Bank
• SREI Equipment Finance Limited
• Standard Chartered Bank
• State Bank of India
• Syndicate Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank

Facilities :

SECURED LOANS	31.03.2018 (INR In Million)	31.03.2017 (INR In Million)
LONG-TERM BORROWINGS
Non-Convertible Debentures (RTL-1)	673.700	1140.300
Rupee Term Loans (RTL-A)
From Banks	839.700	1037.400
From Others	471.200	524.600
Rupee Term Loans (RTL-1)
From Banks	1352.200	1952.600
From Others	1380.100	1999.700
Rupee Term Loans (RTL-2)
From Banks	3596.200	5285.700
From Others	900.900	1308.000
Working Capital Term Loan from Banks (WCTL-1)		0.000
Working Capital Term Loan from Banks (WCTL-2)
From Banks	64.900	87.000
From Others	123.200	87.000
Foreign Currency Term Loans from Banks	64.200	605.500
0.01% Optionally Convertible Debentures (OCDs)
From Banks	10906.600	11675.900
From Others	2461.200	2619.600
SHORT TERM BORROWINGS
Rupee Loan from Banks
Cash credit facilities (Repayable on demand)	9822.400	11046.200
Working capital demand loan (Repayable on demand)	328.700	328.700
Buyer's credit	108.900	93.900
Total	33094.100	39792.1

Auditors :
Name :	Lex Legal & Partners Agarwal Law Associates Cyril Amarchand Mangaldas Walker Chandiok and Company LLP Chartered Accountants
Advocates & Solicitors :	Lex Legal & Partners Agarwal Law Associates Cyril Amarchand Mangaldas
Memberships :	Not Available
Collaborators :	Not Available
Joint Venture :	HCC Concessions Limited India Narmada Bridge Tollways Limited India Badarpur Faridabad Tollways Limited India Baharampore-Farakka Highways Limited India Farakka-Raiganj Highways Limited India Raiganj-Dalkhola Highways Limited India Ecomotel Hotel Limited India Spotless Laundry Services Limited India Whistling Thrush Facilities Services Limited India Apollo Lavasa Health Corporation Limited India Andromeda Hotels Limited India Bona Sera Hotels Limited India Starlit Resort Limited India Nirmal BOT Limited
Associates Companies :	Warasgaon Lake View Hotels Limited India Knowledge Vistas Limited India Evostate AG Switzerland MCR Managing Corp. Real Estate Switzerland Projektentwicklungsges. Parking Kunstmuseum AG Switzerland Evostate Immobilien AG (w.e.f. 12 October 2017) Switzerland Highbar Technocrat Limited (w.e.f. 21 July 2016) (previously known as Osprey Hospitality Limited)
Other Related Parties :	Gulabchand Foundation (formed under section 25 of the Companies Act, 1956) Hincon Holdings Limited Hincon Finance Limited HCC Employee's Provident Fund Note: Refer note 37B(a) for information on transaction related to post-employment contribution plan

CAPITAL STRUCTURE

AS ON: 31.03.2018

Authorised Capital:

No. of Shares	Type	Value	Amount
1250000000	Equity Shares	INR 1/- each	INR 1250.000 Million
10000000	Redeemable cumulative preference shares	INR 10/- each	INR 100.000 Million
	Total		INR 1350.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1015462926	Equity Shares	INR 1/- each	INR 1015.400 Million
13225	Add : Forfeited equity shares		INR 0.100 Million
	Total		INR 1015.500 Million

a. Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting year

As at 31 March 2018	Number	INR in Million
Issued during the year	1015462926	1015.400

b. Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of ` 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend, if any.

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.

c. Shares held by subsidiary company:

Western Securities Limited, a subsidiary company, holds 52,000 equity shares (31 March 2017: 52,000 equity shares) in the Company.

d. Shareholding of more than 5%:

Name of the Shareholder	As at March 31, 2018
Promoter	% held	No. of shares
Hincon Holdings Limited	21.27%	216023600
Hincon Finance Limited	6.13%	62261186
Non-promoter
HDFC Trustee Company Limited	6.87%	69732622

e. Shares reserved for issue under Employee Stock Options Scheme (ESOP):

As at 31 March 2018, there are 300,000 (31 March 2017: 120,180) stock options granted during the year which are outstanding and convertible into equal number of equity shares of INR 1 each convertible at an exercise price of INR 31.15 per share

During the year ended 31 March 2018, none of the options were exercised / converted into equity shares and 120,180 (31 March 2017: 1534450) stock options got lapsed

i. Options granted

a) The Company offered 4458800 Stock Options on 25 April 2008 (each option carrying entitlement for one equity share of the face value of INR 1 each) at a price of INR 132.50 per equity share. In accordance with the approval of the board of directors and shareholders of the Company, the ESOP Compensation Committee at its meeting held on 20 July 2009 repriced 4131600 options at INR 104.05 per equity share.

b) The ESOP Compensation Committee of the Company at its Meeting held on 12 August 2010 decided to double the number of employee stock options (vested and unvested), not exercised and in-force, as on the Record Date i.e. 11 August 2010 and halved the exercise price on account of issuance and allotment of Bonus Equity Shares in the proportion of 1:1. Accordingly, 3,553,760 employee stock options in-force granted by the Company on 25 April 2008 were doubled i.e. 7,107,520 and the exercise price in respect of the same was reduced from `104.05 to ` 52.03 per equity share and none of the options are outstanding as at 31 March 2018.

c) The ESOP Compensation Committee of the Company at its Meeting held on 20 March 2018 has approved a grant of 300,000 options, in accordance with the terms and conditions contained in the existing HCC Employee Stock Option Scheme of the Company (‘Scheme’) (each option carrying entitlement for one equity share of the face value of INR 1 each) at an exercise price of INR 31.15 per equity share, subject to approval of the shareholders for amendment of the existing Scheme, in line with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (“SEBI Regulations”).

ii. Settlement Through Equity Shares

iii. Options vested Nil options (31 March 2017: Nil) remain vested and outstanding as at 31 March 2018

f. Bonus shares/ buy back/shares for consideration other than cash issued during past five years:

(i) Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash - Nil

(ii) Aggregate number and class of shares allotted as fully paid up by way of bonus shares - Nil

(iii) Aggregate number and class of shares bought back – Nil

g. Pursuant to the approval of the shareholders at the Extra Ordinary General Meeting held on 5 January 2017, the allotment committee of the Board of Directors at its meetings held on 6 January 2017 and 19 January 2017 alloted collectively to the lenders 231,544,729 equity shares of face value of INR 1 each at a premium of INR 33.92 per share aggregating INR 8085.500 million and 14,414,874 optionally convertible debentures (OCDs) of face value of INR 1,000 each at par (carrying coupon rate of 0.01% p.a.) aggregating INR 1,441.49 crore. Further, pursuant to the approval of the shareholders at the Annual General Meeting held on 6 July 2017, the allotment committee of the Board of Directors at its meeting held on 17 July 2017 allotted to a lender 4,759,291 equity shares of face value of INR 1 each at a premium of INR 40.61 per share aggregating INR 19.80 crore and 256,716 OCDs of face value of INR 1,000 each at par (carrying coupon rate of 0.01% p.a.) aggregating INR 25.67 crore on preferential basis as part of the Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme). The implementation of the S4A Scheme and the consequent allotment of equity shares/ OCDs have been made in respect of all the lenders except for few lenders who will be alloted equity shares and OCDs once they exercise their option. Number of equity shares/OCDs to be alloted will be determined based on the share price prevailing at the time of such allotment. (Also refer Note 16.1)

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET (STANDALONE)

SOURCES OF FUNDS	31.03.2018	31.03.2017	31.03.2016
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1015.500	1010.800	779.200
(b) Reserves & Surplus	26733.900	25889.000	17254.000
(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)	27749.400	26899.800	18033.200
(3) Non-Current Liabilities
(a) long-term borrowings	22834.100	28323.300	26117.100
(b) Deferred tax liabilities (Net)	374.800	231.800	64.800
(c) Other long term liabilities	120.500	142.300	183.900
(d) long-term provisions	413.200	401.200	379.700
Total Non-current Liabilities (3)	23742.600	29098.600	26745.500
(4) Current Liabilities
(a) Short term borrowings	10277.200	11485.800	20496.400
(b) Trade payables	18101.400	16164.000	14378.700
(c) Other current liabilities	30869.900	27079.100	19305.800
(d) Short-term provisions	1521.800	1312.500	1177.800
Total Current Liabilities (4)	60770.300	56041.400	55358.700
TOTAL	112262.300	112039.800	100137.400
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5976.000	5945.600	6870.200
(ii) Intangible Assets	3.400	9.100	14.900
(iii) Capital work-in-progress	1603.800	1871.800	16.800
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7034.200	7186.300	6993.500
(c) Trade receivables	13751.300	14290.900	21613.500
(d) Deferred tax assets (net)	0.000	0.000	0.000
(e) Long-term Loan and Advances	19656.200	17390.300	15250.700
(f) Other Non-current assets	4680.200	4205.700	3776.500
Total Non-Current Assets	52705.100	50899.700	54536.100
(2) Current assets
(a) Current investments	777.200	777.200	777.200
(b) Inventories	1793.300	2333.100	1734.700
(c) Trade receivables	23977.900	20865.500	5038.400
(d) Cash and cash equivalents	1974.400	1196.100	953.600
(e) Short-term loans and advances	186.700	232.700	0.200
(f) Other current assets	30847.700	35735.500	37097.200
Total Current Assets	59557.200	61140.100	45601.300
TOTAL	112262.300	112039.800	100137.400

PROFIT & LOSS ACCOUNT (STANDALONE)

	PARTICULARS	31.03.2018	31.03.2017	31.03.2016
	SALES
	Income	45750.800	41959.400	41908.900
	Other Income	2510.000	2622.000	2142.400
	TOTAL	48260.800	44581.400	44051.300
Less	EXPENSES
	Cost of Construction Materials Consumed	10726.600	8685.900	10009.000
	Purchase of Traded Goods	0.000	3.900	3.200
	Employees benefits expense	4379.700	3968.000	3832.400
	Subcontracting expenses	19012.500	16037.500	13644.900
	Construction expenses	4075.500	4539.500	4997.600
	Exceptional items	0.000	212.200	280.300
	Other Expenses	1117.700	1188.300	1337.900
	TOTAL	39312.000	34635.300	34105.300
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	8948.800	9946.100	9946.000
Less	FINANCIAL EXPENSES	6599.700	7723.700	7017.100
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2349.100	2222.400	2928.900
Less/ Add	DEPRECIATION/ AMORTISATION	1229.400	1252.800	1524.700
	PROFIT/ (LOSS) BEFORE TAX	1119.700	969.600	1404.200
Less	TAX	344.400	375.500	456.600
	PROFIT/ (LOSS) AFTER TAX	775.300	594.100	947.600
	EARNINGS IN FOREIGN CURRENCY	1030.600	1192.600	NA
	IMPORTS
	Raw Materials	NA	NA	93.700
	Components, embedded goods and spare-parts	NA	NA	149.200
	Capital Goods	NA	NA	128.400
	TOTAL IMPORTS	NA	NA	371.300
	Earnings / (Loss) Per Share (INR)	0.76	0.71	1.22

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

PARTICULARS	31.03.2018	31.03.2017	31.03.2016
Current Maturities of Long term Borrowings	4142.700	4157.800	3736.100
Cash generated from operations	13906.900	6579.600	3445.200
Net cash generated from operating activities	13176.300	6394.800	3393.700

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2018	31.03.2017	31.03.2016
Average Collection Days (Sundry Debtors / Income * 365 Days)	191.30	181.51	43.88
Account Receivables Turnover (Income / Sundry Debtors)	1.91	2.01	8.32
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	615.95	678.94	524.18
Inventory Turnover (Operating Income / Inventories)	4.99	4.26	5.73
Asset Turnover (Operating Income / Net Fixed Assets)	1.18	1.27	1.44

LEVERAGE RATIOS

PARTICULARS	31.03.2018	31.03.2017	31.03.2016
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.78	0.79	0.85
Debt Equity Ratio (Total Liability / Networth)	1.34	1.63	2.79
Current Liabilities to Networth (Current Liabilities / Net Worth)	2.19	2.08	3.07
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.27	0.29	0.38
Interest Coverage Ratio (PBIT / Financial Charges)	1.36	1.29	1.42

PROFITABILITY RATIOS

PARTICULARS		31.03.2018	31.03.2017	31.03.2016
Net Profit Margin ((PAT / Sales) * 100)	%	1.69	1.42	2.26
Return on Total Assets ((PAT / Total Assets) * 100)	%	0.69	0.53	0.95
Return on Investment (ROI) ((PAT / Networth) * 100)	%	2.79	2.21	5.25

SOLVENCY RATIOS

PARTICULARS	31.03.2018	31.03.2017	31.03.2016
Current Ratio (Current Assets / Current Liabilities)	0.98	1.09	0.82
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.95	1.05	0.79
G-Score Ratio Financial (Networth / Total Assets)	0.25	0.24	0.18
G-Score Ratio Debt (Debts / Equity Capital)	36.69	43.50	64.62
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.98	1.09	0.82

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

STOCK PRICES

Face Value	INR 1.00/-
Market Value	INR 12/-

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2016	31.03.2017	31.03.2018
	INR In Million	INR In Million	INR In Million
Share Capital	779.200	1010.800	1015.500
Reserves & Surplus	17254.000	25889.000	26733.900
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	18033.200	26899.800	27749.400
long-term borrowings	26117.100	28323.300	22834.100
Short term borrowings	20496.400	11485.800	10277.200
Current Maturities of Long term debt	3736.100	4157.800	4142.700
Total borrowings	50349.600	43966.900	37254.000
Debt/Equity ratio	2.792	1.634	1.343

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017	31.03.2018
	INR In Million	INR In Million	INR In Million
Sales	41908.900	41959.400	45750.800
		0.120	9.036

NET PROFIT MARGIN

Net Profit Margin	31.03.2016	31.03.2017	31.03.2018
	INR In Million	INR In Million	INR In Million
Sales	41908.900	41959.400	45750.800
Profit/ (Loss)	947.600	594.100	775.300
	2.26%	1.42%	1.69%

LEGAL CASES

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

PRESENTATION DATE:- 14.08.2015

LODGING NO: CPL/ 781/ 2015 FILING DATE: 14.08.2015 REG. NO: CP/1143/2015 REG. DATE: 14.10.2015

PETITIONER: LEXICON COMMERCIAL ENTERPRISES RESPONDENT: HINDUSTAN CONSTRUCTION CO. LIMITED

PETN. ADV.: SHEETAL ULHAS MALVANKAR [I9402] RESP. ADV.: ADVAYA LEGAL (I2471)

DISTRICT: MUMBAI

BENCH: SINGLE

STATUS: PRE-ADMISSION CATEGORY: COMPANY PETITION U/ SEC 433, 434, 439 COMPANIES ACT

NEXT DATE: 09.01.2018 STAGE: FOR ADMISSION [ORIGINAL SIDE MATTERS]

CORAM: HON’BLE SHRI JUSTICE K.R SRIRAM STAGE: FOR ADMISSION [ORIGINAL SIDE MATTERS]

LAST DATE: 27.09.2017

LAST CORAM : HON’BLE SHRI JUSTICE A.K MENON

ACT: Companies Act and rules 1956 Under Section :- 433 434 439

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

PRESENTATION DATE:- 22.05.2017

LODGING NO: COMSL/301/2017 FILING DATE: 22.05.2017 REG. NO: COMS/401/2017 REG. DATE: 20.06.2017

PETITIONER: NORMET INTERNATIONAL LIMITED RESPONDENT: HINDUSTAN CONSTRUCTION CO. LIMITED

PETN. ADV.: CRAWFORD BAYLEY AND CO [I1491] RESP. ADV.: ADVAYA LEGAL (I2471)

DISTRICT: MUMBAI

BENCH: SINGLE

STATUS: PRE-ADMISSION CATEGORY: COMPANY SUMMARY SUIT

ACT: Code of Civil Procedure 1908

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

PRESENTATION DATE:- 16.01.2017

LODGING NO: ITXAL/128/2017 FILING DATE: 16.01.2017 REG. NO: ITXA/676/2017 REG. DATE: 19.04.2017

PETITIONER: PR. COMMISSIONER OF INCOME - 14 RESPONDENT: HINDUSTAN CONSTRUCTION CO. LIMITED

PETN. ADV.: SURESH KUMAR [I2100]

DISTRICT: MUMBAI

BENCH: DIVISION

STATUS: PRE-ADMISSION CATEGORY: TAX APPEALS

NEXT DATE: 28.03.2018 STAGE: FOR REJECTION [ORIGINAL SIDE MATTERS]

CORAM: ACCORDING TO SITTING LIST

ACCORDING TO SITTING LIST

ACT: Income Tax Act, 1961 Under Section :- 260 A

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

PRESENTATION DATE:- 01.08.2017

LODGING NO: CARAPL/107/2017 FILING DATE: 01.08.2017

PETITIONER: UNION OF INDIA RESPONDENT: HINDUSTAN CONSTRUCTION CO. LIMITED

PETN. ADV.: DUSHYAN KUMAR [I3981] RESP. ADV.: ADVAYA LEGAL (I2471)

DISTRICT: MUMBAI

BENCH: SINGLE

STATUS: PRE-ADMISSION CATEGORY: ARBITRATION APPLICATION U/S 11 OF ARBITRATION AND CONCILIATION ACT, 1996

LAST DATE: 12.12.2017 STAGE: FOR REJECTION [ORIGINAL SIDE MATTERS]

LAST CORAM: REGISTRAR [OS]/ PROTHONOTARY AND SR. MASTER

ACT: Arbitration and conciliation Act 1996 Under Section :- 11 (4)

ABRIDGED BALANCE SHEET (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2018	31.03.2017
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1015.500	1010.700
(b) Reserves & Surplus	(11696.300)	(3690.600)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-controlling interest	(4829.900	(2070.900)
Total Shareholders’ Funds (1) + (2)	(15510.700)	(4750.800)
(3) Non-Current Liabilities
(a) long-term borrowings	36616.600	61543.700
(b) Deferred tax liabilities (Net)	402.300	498.300
(c) Other long term liabilities	3.400	11.300
(d) long-term provisions	1701.400	1840.000
Total Non-current Liabilities (3)	38723.700	63893.300
(4) Current Liabilities
(a) Short term borrowings	11232.400	12403.600
(b) Trade payables	36469.500	34629.200
(c) Other current liabilities	92985.800	62686.300
(d) Short-term provisions	2748.500	2096.000
Total Current Liabilities (4)	143436.200	111815.100
TOTAL	166649.200	170957.600
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	15561.000	15589.400
(ii) Intangible Assets	1704.500	1497.100
(iii) Capital work-in-progress	17139.200	18904.200
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	3946.300	4456.300
(c) Trade receivables	13751.300	14290.900
(d) Deferred tax assets (net)	7.200	267.000
(e) Long-term Loan and Advances	796.000	250.400
(f) Other Non-current assets	2474.100	2225.000
Total Non-Current Assets	55379.600	57480.300
(2) Current assets
(a) Current investments	251.900	332.300
(b) Inventories	25040.600	26079.400
(c) Trade receivables	24652.800	23077.000
(d) Cash and cash equivalents	9520.900	7591.400
(e) Short-term loans and advances	199.800	833.700
(f) Other current assets	51603.600	55563.500
Total Current Assets	111269.600	113477.300
TOTAL	166649.200	170957.600

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS	31.03.2018	31.03.2017
	SALES
	Income	101324.600	98667.800
	Other Income	560.800	810.700
	TOTAL	101885.400	99478.500
Less	EXPENSES
	Cost of Construction Materials Consumed	10736.900	8702.700
	Purchase of Traded Goods	1.800	8.300
	Change in inventories	498.500	(2.100)
	Employees benefits expense	10216.100	9954.400
	Subcontracting expenses	64379.500	62787.600
	Construction expenses	4766.100	5678.800
	Exceptional items	1601.900	212.200
	Other Expenses	3030.600	3924.700
	Share of loss of association and joint ventures	389.000	946.600
	TOTAL	95620.400	92213.200
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	6265.000	7265.300
Less	FINANCIAL EXPENSES	15253.800	15428.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(8988.800)	(8163.400)
Less/ Add	DEPRECIATION/ AMORTISATION	2013.300	2058.200
	PROFIT/ (LOSS) BEFORE TAX	(11002.100)	(10221.600)
Less	TAX	(102.100	(395.600
	PROFIT/ (LOSS) AFTER TAX	(10900.000)	(9826.000)
	Earnings / (Loss) Per Share (INR)	(8.03)	(9.12)

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	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	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	G65503898	100135909	NTPC LIMITED	09/11/2017	-	-	17249552.0	NTPC BHAWAN, SCOPE COMPLEX, 7, INSTITUTIONAL AREALODHI ROADNEW DELHI -110003 INDIA
2	G49795453	100114372	UNIVERSAL TRUSTEESHIP SERVICES LIMITED	29/06/2017	-	-	21160000000.0	D-214, KANAKIA ZILLION, L.B.S MARGKURLA BEST BUS DEPOT, BKC ANNEXE, KURLA (WEST)MUMBAI-400070 MAHARASHTRA INDIA
3	G47354469	100107117	MILESTONE TRUSTEESHIP SERVICES PRIVATE LIMITED	29/06/2017	-	-	15152900000.0	602, HALLMARK BUSINESS SQUARE, SAINT DHYANESHWARMARG, OPP. GURU NANAK HOSPITAL, BANDRA (EAST)MUMBAI-400051 MAHARASHTRA INDIA
4	G49794936	100071429	UNIVERSAL TRUSTEESHIP SERVICES LIMITED	17/12/2016	29/06/2017	-	1490000000.0	D-214, KANAKIA ZILLION, L.B.S MARGKURLA BEST BUS DEPOT, BKC ANNEXE, KURLA (WEST)MUMBAI-400070 MAHARASHTRA INDIA
5	G02053031	100021797	SBICAP TRUSTEE COMPANY LIMITED	02/04/2016	-	-	2528700000.0	202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAI-400005 MAHARASHTRA INDIA
6	G63155816	10626920	UNIVERSAL TRUSTEESHIP SERVICES LIMITED	08/03/2016	29/06/2017	-	711000000.0	D-214, KANAKIA ZILLION, L.B.S MARGKURLA BEST BUS DEPOT, BKC ANNEXE, KURLA (WEST)MUMBAIMA400070 MAHARASHTRA INDIA
7	C82055757	10626857	SBICAP TRUSTEE COMPANY LIMITED	21/01/2016	-	-	1838700000.0	202, MAKER TOWER, 'E', CUFFE PARADE,COLABA,MUMBAI-400005 MAHARASHTRA INDIA
8	G67344382	10541731	UNIVERSAL TRUSTEESHIP SERVICES LIMITED	08/01/2015	29/06/2017	-	100000000.0	D-214, KANAKIA ZILLION, L.B.S MARGKURLA BEST BUS DEPOT, BKC ANNEXE, KURLA (WEST)MUMBAI-400070 MAHARASHTRA INDIA
9	B94627759	10473304	EXPORT-IMPORT BANK OF INDIA	22/01/2014	-	-	1539250000.0	CENTRE ONE BUILDING, FLOOR 21,WORLD TRADE CENTRE COMPLEX, CUFFE PARADE,MUMBAI-400005 MAHARASHTRA INDIA
10	G52580719	10390057	UNIVERSAL TRUSTEESHIP SERVICES LIMITED	09/11/2012	29/06/2017	-	702600000.0	D-214, KANAKIA ZILLION, L.B.S MARGKURLA BEST BUS DEPOT, BKC ANNEXE, KURLA (WEST)MUMBAI-400070 MAHARASHTRA INDIA

UNSECURED LOANS

PARTICULARS	31.03.2018 (INR In Million)	31.03.2017 (INR In Million)
SHORT TERM BORROWINGS
Loans from related parties	17.200	17.000
Total	17.200	17.000

CONTINGENT LIABILITIES:

Particulars	31.03.2018 (INR In Million)	31.03.2017 (INR In Million)
Claims not acknowledged as debts by the Company	222.800	222.300
Income Tax liability that may arise in respect of which Company is in appeals	179.900	246.300
Sales Tax liability / Works Contract Tax liability / Service Tax / Customs Liability that may arise in respect of matters in appeal	1847.200	1455.000
Corporate Guarantees:
The Company has provided an undertaking to pay in the event of default on loan given by lenders to the following related parties:
Lavasa Corporation Limited (LCL)	3765.800	3002.900
HCC Mauritius Enterprises Limited	446.400	429.800
HCC Mauritius Investment Limited	1853.100	1802.100
Counter indemnities given to banks in respect of contracts executed by subsidiaries and joint ventures	300.600	718.700
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of the above contingent liabilities except in respect of matter stated in (iv) above. Future cash outflows in respect of the above are determinable only on receipt of judgments/ decisions pending with various forums/ authorities. The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

CORPORATE INFORMATION

The Company or “HCC” is a public limited company incorporated and domiciled in India. The Company having CIN L45200MH1926PLC001228, is principally engaged in the business of providing engineering and construction services. Its shares are listed on two recognised stock exchanges in India - the Bombay Stock Exchange and the National Stock Exchange. The registered office of the Company is located at Hincon House, LBS Marg, Vikhroli (West), Mumbai - 400 083, India

The standalone financial statements (“the financial statements”) of the Company for the year ended 31 March 2018 were authorised for issue in accordance with resolution of the Board of Directors on May 3, 2018.

MANAGEMENT DISCUSSION AND ANALYSIS

INTRODUCTION

2017-18 was a year of consolidation for the construction sector in India and as one of the leaders in that industry, it was no different for HCC. Firmly entrenched on the path to recovery, HCC focused on reducing its financial leverage and driving organisational change that aimed to deliver operational robustness and sustained long-term profitability. Starting from 2018-19, with the required financial and human resources in place, the Company seems well poised to witness a good growth in execution of its sizeable order backlog.

MACROECONOMIC REVIEW

After three years of over 7% growth, the Indian economy slowed down slightly in 2017-18 recording 6.4% growth in real gross value added (GVA). Despite this slowdown, the economy continues to remain one of the fastest growing among major global economies.

From a global perspective, however, there are certain concerns. First, under stress from worsening domestic economic conditions, there are growing protectionist tendencies in some countries especially the USA, and it remains to be seen as to how the situation unfolds. Second, average crude oil (Indian basket) prices have risen by around 14% in 2017-18 compared to 2016-17. Going by the recent trends, the average crude oil prices, which was around US$ 56-57 per barrel in 2017-18 could rise further by another 10% to 15% in 2018-19. These factors could have a dampening effect to global economic growth.

India is also going through a difficult phase related to its banks and non-performing assets (NPA). The latest Reserve Bank of India (RBI) estimates in September 2017 suggests that gross NPA was INR 9 lakh crore, which is 10.5% of the banking assets with restructured assets being an incremental INR 1.3 lakh crore. Further, a report by the credit rating agency, CARE, shows that, from a global perspective, India was fifth-worst in terms of bad loans in the system, measured as the ratio of NPA to outstanding loans (see chart B).

In a major development on February 12, 2018, the RBI withdrew a host of restructuring schemes such as 5:25, Strategic Debt Restructuring (SDR), Scheme for Sustainable Structuring of Stressed Assets (S4A) and Corporate Debt Restructuring (CDR). Instead, the RBI has insisted on capturing early stress on loan accounts immediately in the event of a default.

While this new stance of the RBI will doubtless add transparency about stressed accounts, a proportion of banking assets under the various restructuring schemes that have been withdrawn by the central bank could run the risk of becoming NPAs. Moreover, unless this move is backed by concurrent addition of resources for provisioning or capital infusion, it may create more confusion among the lenders and borrowers alike. Therefore, it is imperative that all stakeholders, under the aegis of the RBI, evolve a cohesive and synchronized joint plan regarding the extent of provisioning and capital required and its mode of funding. In the interim, the present uncertain regulatory environment coupled with the increasing revelations and ongoing probes into frauds and allegations of improprieties against bankers is denting credit availability in the economy.

In summary, therefore, though India’s GDP and GVA growth witnessed a slowdown in 2017-18 compared to the three earlier years, it is still in a fairly healthy state. Growth in public investments has created a fillip for infrastructure and also increased the ratio of gross domestic capital formation to GDP - for the first time over the last five years. There are concerns regarding the NPA overhang and the possibility of a widening current account deficit due to rising crude oil prices. Equally, greater stability in operationalizing the GST regime in India, likely recovery in investments and a continued commitment to fiscal prudence augur well for the economy. The RBI has pegged GDP growth for 2018-19 at 7% of GDP. HCC believes that such a growth rate will be realized, and that a stage could be set for 7.3% to 7.5% growth in 2019-20.

HCC – OPERATIONS REVIEW

ENGINEERING AND CONSTRUCTION DIVISION

The Company’s core business is providing Engineering and Construction (E&C) services for large projects across sectors like Power (Hydro, Nuclear, Thermal), Transportation (Roads, Bridges, Metros, Marine), Water (Irrigation and Water Supply) and Industrial projects.

BUSINESS DEVELOPMENT

With concerted yet selective bidding, the Company secured several marquee orders. Select details are provided below:

• HCC, as a lead partner in the joint venture with HSEPL, has been awarded a INR 6729.900 million contract on EPC basis for the construction of the Parwan Gravity Dam by the Water Resources Department, Government of Rajasthan. HCC’s share in the JV is 90% (INR 6057.000 million).

• As a lead partner in the joint venture with URC Construction Pvt Ltd., HCC has been awarded a INR 7972.900 million contract by the Bangalore Metro Rail Corporation Ltd. HCC share in the JV is 51% (INR 4066.100 million). The project is to be completed in 36 months.

• The Company was awarded the prestigious IGCAR (Indira Gandhi Centre for Atomic Research) contract worth INR 7635.700 million for construction of the Fast Reactor Fuel Cycle facility at coastal city of Kalpakkam. The scope of work includes construction of Nuclear Safety Compliant Structures for fuel processing plant for Fast Breeder Reactors and allied facilities including civil, electrical and mechanical works. The project is to be completed in 48 months.

• As a lead partner in the joint venture with AL FARA’A, the Company was awarded INR 4970.900 million contract by the Maharashtra Metro Rail Corporation Ltd for the Pune Metro Rail Project. HCC’s share in the JV is 51% (INR 25350.000 million). The project is to be completed in 110 weeks. The contract is for construction of nine elevated metro stations.

• HCC, as a lead partner in the joint venture with AL FARA’A, has been awarded another contract of INR 4840.0000 million by the Maharashtra Metro Rail Corporation Ltd. for the Pune Metro Rail Project. HCC’s share in the JV is 51% (INR 2470.000 million). The contract is for construction of eight elevated metro rail stations and PMC on Line II (E-W Corridor) of Pune Metro Rail Project.

FIXED ASSETS:

Tangible Assets

§ Freehold Land

§ Leasehold premises

§ Buildings and Sheds

§ Plant and Machinery

§ Furniture and Fixtures

§ Office Equipments

§ Heavy Vehicles

§ Light Vehicles

§ Helicopter / Aircraft

§ Speed Boat’ Computers

Intangible Assets

§ Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No 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 68.08
UK Pound	1	INR 89.59
Euro	1	INR 78.83

INFORMATION DETAILS

Information Gathered by :	RUB
Analysis Done by :	PSD
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.

·