MIRA INFORM REPORT

Report Date :

22^nd May, 2006

IDENTIFICATION DETAILS

Name :	ESSEL MINING AND INDUSTRIES LIMITED
Registered Office :	Industry House, 18^th Floor, 10, Camac Street, Kolkata - 700 017, West Bengal
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	1^st April, 1950
Com. Reg. No.:	21-18728
CIN No.: [Company Identification No.]	U51109WB1950PTC018728
TAN No.: [Tax Deduction & Collection Account No.]	CALS00358B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Low Carbon Ferro Alloys and HDPE/PP Woven Sacks

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 23500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company of Aditya Birla Group. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a long run.

LOCATIONS

Registered Office/ Head Office :	Industry House, 18^th Floor, 10, Camac Street, Kolkata - 700 017, West Bengal
Tel. No.:	91-33-22828339/6378/6398
Fax No.:	91-33-2824998
E-Mail :	info@emilvapi.com
Website :	http://www.emilvapi.com
Warehouse:	K Ferro Chem Unit : Plot No. 165 & 166, G.I.D.C.,Vapi - 396 195, Dist. Valsad, Gujarat, India Tel. No. 91-260-2423199/2436520 Fax No. 91-260-431099 E-Mail: info@emilvapi.com K HDPE / PP Woven Sacks Unit : Plot A-6, Sector 20, Industrial Area, Jagdishpur - 227 817, Uttar Pradesh, India. K Mines : Post Barbil - 758035, Dist - Keonjhar, Orissa-758035, India Tel. No.: 91-6767-275224/237 K Industry House, 45, Race Course Road, Ground Floor, Bangalore-560001, Karnataka K 14/3 Mile Stone, Mathura Road, Faridabad, Haryana Ezra Street, Kolkata-700001, West Bengal
Branches :	K Industry House, 45, Race Course Road, Ground Floor, Bangalore-560001, Karnataka Tel. No. 91-80-2268441 Fax No. 91-80-2253920 E-Mail: hgi.blr@rme.sril.in K Mittal Court, B Wing, 12^th Floor, 224, Nariman Point, Mumbai-400021, Maharashtra Tel. No. 91-22-282-6456/2844241/2822918 Fax No. 91-22-28844214 E-Mail: hgi.mum@rme.sril.in K UCO Bank Building, Parliament Street, New Delhi-110001 Tel. No. 91-11-3359634/3739657 Fax No. 91-11-3323022 E-Mail: hgi.del@rme.sril.in

DIRECTORS

Name :	Shri Kumar Mangalam Birla
Designation :	Chairman
Name :	Smt. Rajashree Birla
Designation :	Vice Chairperson
Name :	Shri. A K Kothari
Designation :	Director
Name :	Shri S K Daga
Designation :	Director
Name :	Shri Manish Newar
Designation :	Director
Name :	Shri N C Shah
Designation :	Director
Name :	Shri Ravi Kastia
Designation :	Director

KEY EXECUTIVES

Name :	Shri H C Daga
Designation :	Senior President
Name :	Shri R P Pansari
Designation :	Senior President & Chief Finance Officer
Name :	Shri Ramesh Aggarwal
Designation :	Senior Vice President (F&C)
Name :	Shri G K Ravinder
Designation :	Senior Vice President – HR
Name :	Shri R S Sharme (Mining Division)
Designation :	Jt. Executive President
Name :	Shri Ravi Bansal (Ferro Chem Division)
Designation :	Vice President
Name :	Shri M P Dhanuka (Nitrogen Gas Division)
Designation :	Vice President

MAJOR SHAREHOLDERS

Names	No. of Shares
Ajanta Offset & Packaging Limited	30000
Digital Equipment Limited	100
Gold Motor Vyapar Corporation Limited	57500
Himachal Futuristic Corporation Limited	15180
J. J. Finance Limited	50000
Mangalam Carbide Limited	20000
M. K. J. Enterprise Limited	2000
Prag Jyoti Construction Company Limited	40000

BUSINESS DETAILS

Line of Business :

Manufacturing of Low Carbon Ferro Alloys and HDPE/PP Woven Sacks

Products :

Item Code No.	Product Description
39231000.00	Low Carbon ferro Alloys and HDPE/PP Woven Sacks
260111.01	Iron Ore
720270.00	Ferro Molybdenum

Terms :

Selling :

Cash, Contract, Credit or L/C terms

Purchasing :

Cash, Contract, L/C or Credit terms

PRODUCTION STATUS

Class of Goods	Installed Capacity (Qty. in MT)	Production (Qty. in MT)
Iron Ore	Not Applicable	1321464
Manganese Ore	Not Applicable	--
Ferro Molybdenum	1200	638.640
Ferro Vanadium	300	190.940
Ferro Tungsten	120	8.172
Vanadiam Pentoxide Fused	180	183.580
Vanadiam Pentoxide Unfused	45	3.013
Aluminium Shots	300	--
High Density Polyethylene Sacks	3800	3803.463

GENERAL INFORMATION

Customers :

Manufacturers, wholesalers and government bodies

No. of Employees :

2000

Bankers :

K ICICI Bank

K HDFC Bank,

Kolkata, West Bengal

K Indian Overseas Bank,

Free School Street Branch,

6, Royd Street, Kolkata - 700 016,

West Bengal

K State Bank of India,

Commercial Branch, 24, Park Street,

Kolkata - 700 016, West Bengal

K United Bank of India,

Kolkata, West Bengal

Facilities :

	Rs. millions	Rs. millions
Secured loans
a) Long Term
Foreign Currency loan:
From Co-operative Central Raiffeisen Boerenlen Bank B A, Singapore Branch	198.315	196.425
From ICICI Bank	503.124	--
b) Other Loans:
From Schedule bank. On Cash Credit / Packing Credit Account	8.860	18.423
A]	710.299	214.848
Unsecured loans
Long term
Under sales tax Defferral Scheme	23.079	30.835
Others
From Bodies Corporate	--	1.855
B]	23.079	32.690
A] + B]	733.378	247.538

Banking Relations :	Satisfactory
Auditors :	S. R. Batliboi & Company Chartered Accountant
Address:	36, Ganesh Chandra Avenue, Kolkata - 700 013, West Bengal, India
Affiliates:	K Birla Growth Fund Limited K Birla Management Corporation Limited K Century Textiles Company Limited K Grasim Industries Limited K HGI Industries Limited K Hindalco Industries Limited K Indian Rayon & Industries Limited K Indore Exporting and Importing Company Limited K Mangalam Carbide Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,00,000	Equity Shares	Rs. 10 each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,92,695	Equity Shares	Rs. 10 each	Rs. 4.927 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		4.927	4.918
2] Share Capital Suspense		--	0.009
3] Reserves & Surplus		5883.394	2293.812
NETWORTH		5888.321	2298.739
LOAN FUNDS
1] Secured Loans		710.299	214.848
2] Unsecured Loans		23.079	32.690
TOTAL BORROWING		733.378	247.538
DEFERRED TAX LIABILITIES		175.868	56.575
TOTAL		6797.567	2602.852
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1438.235	486.307
Capital work-in-progress		193.423	53.961
INVESTMENT		3710.324	1456.543
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	265.435	265.435
	Sundry Debtors	399.829	399.829
	Cash & Bank Balances	47.197	47.197
	Loans & Advances	208.653	208.653
Total Current Assets		2809.857	921.114
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	304.412	304.412
	Provisions	10.661	10.661
Total Current Liabilities		1354.272	315.073
Net Current Assets		1455.585	606.041
MISCELLANEOUS EXPENSES		--	--
TOTAL		6797.567	2602.852

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	11244.855	4179.025
Profit/(Loss) Before Tax	5665.123	1840.197
Provision for Taxation	2067.114	571.790
Profit/(Loss) After Tax	3598.009	1268.407
Export Value	4849.856	1356.856
Import Value	1414.439	558.191
Total Expenditure	21107.159	7362479

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	32.00	30.35
Net Profit Margin (PBT/Sales)	(%)	50.94	44.90
Return on Total Assets (PBT/Total Assets}	(%)	127.55	125.92
Return on Investment (ROI) (PBT/Networth)		0.96	0.80
Debt Equity Ratio (Total Liability/Networth)		0.35	0.24
Current Ratio (Current Asset/Current Liability)		2.07	2.92

LOCAL AGENCY FURTHER INFORMATION

Established in 1950-

• Essel Mining & Industries is today one of the India's largest Iron ore mining companies in the non captive private sector.

• India's largest producer of Noble Ferro Alloys like Molybdenum, Vanadium, Tungsten & Titanium.

Essel mining is part of Aditya Birla Group, which is among India's largest business houses.

• The Group has 40 state-of-the-art manufacturing units and sectoral services, anchored by 72,000 employees.

• The Group has operations in 18 countries including Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, USA and UK.

• A premium conglomerate, the Aditya Birla Group's annual revenues today are in excess of US$ 5.6 billion with net earnings of US$ 500 million per annum.

• AV Birla Group is the world's largest producer of Viscose Staple Fibre.

• It is among the world's largest producers of White Cement.

• It is the world's largest single location refiner of Palm oil.

• It is a leading producer of Insulators in the world.

• It is the fifth largest producer of Carbon Black in the world.

• It is among the lowest cost producers of Aluminium globally.

Management Team:

Mr. Kumar Mangalam Birla - Chairman
Mr. Ravi Kastia – Business Head & Group Executive President
Mr. H. C. Daga  - Sr. President
Mr. R. P. Pansari – Senior President & Chief Financial Officer
Mr. G. K. Ravindra - Sr. Vice President - HR
Mr. Ramesh Aggarwal - Sr. Vice President (F & C)
Mr. R. S. Sharma - Joint Executive President - Mines Division
Mr. Ravi Bansal - Vice President - Ferro Cheme Division

Essel Mining is driven by an endeavor to convert all waste produced during mining process to usable form so that neighboring population is not affected by the waste. This sums up our Mining Philosophy …… Mining Beyond Mines... that is Generating Wealth from Waste.

Some of the community development initiatives are:

School

• A model school which will have the highest standards of excellence.
• It will act as an important tool for the socio-economic development of the region.

Mobile Health Club

Total beneficiary – 773 people

DDT Spraying

Total beneficiary – 14000 people

Sports Promotion

Total beneficiary – 160 people

Rest Shed

Total beneficiary – 3000 people

Tubewell repairing

Total beneficiary – 1050 people

Family Planning Camp

Total beneficiary – 55 people

Eye camp

Total beneficiary – 109 people

Dental Camp

Total beneficiary – 400 people

Malaria Awareness & Blood Group

Total beneficiary – 500people

Wool Knitting Training

Total beneficiary – 16 people

Street Play for Social Awareness

Total beneficiary – 8200 people

OPERATIONS AND OVERALL PERFORMANCE

Your Company has achieved record financial performance in terms of Turnover, Profitability and ROCE, which are highest since inception. Substantial improvement has been achieved in Production, Despatches, and Exports.

The Net Turnover of the Company at Rs. 11120.700 millions as against Rs. 4098.600 millions during the last year reflects a growth of 176%.

The Export Turnover of the Company at Rs. 4849.900 millions as against Rs. 1356.900 millions in the previous year a growth of 257%.

MINING DIVISION

Your Directors are pleased to inform that the mining division has achieved the highest ever production, despatch, turnover, exports, ROCE and profits since inception. There has been almost a three-fold increase in turnover over the last year. Despite constraints on infrastructure for movement of cargo and other levies etc., the improved performance of the division is all the more commendable.

A new mine at Apahatu has become fully operational during the year, which has augmented the production.

To bolster the infrastructure at the mines, the Infrastructure Division of Essel has set up its own independent rail system (railway siding) has been commissioned in April, 2005. It will provide an effective logistic solution for movement of cargo besides reaping in significant revenue benefits.

FERRO-CHEM DIVISION

Your Directors are pleased to inform that the Division is the single largest producer of Noble Ferro Alloys in the country. It enjoys the distinction of having the largest market share of its products. Adoption of key business strategies such as alliance with overseas raw material suppliers and development of Titanium products for domestic & export market has resulted in robust business growth for the division. It has achieved the highest revenue and profits since inception. Two new products, namely, Ferro Manganese Powder and Ferro Chrome Powder have been introduced in the low carbon Ferro Alloys segment.

Sustained demand augurs well for the business of the division.

NITROGEN GAS DIVISION

The Nitrogen Gas Division enjoys the unique distinction of rendering continuous, uninterrupted supply of Nitrogen gas to Mangalore Refinery and Petrochemicals Limited (MRPL). Equipped with minimal man power, the division has optimized the installed capacity through adoption of world class manufacturing processes in order to cater to the hugely f luctuating requirements of MRPL.

WIND POWER DIVISION

Your company has made a foray into the wind power sector by installing wind mills at Dhule in Maharashtra with a total capacity of 15MW. The wind mills were successfully commissioned and commenced power generation from March 2005. The investment in wind power will further augment the company's earnings.

AWARDS AND RECOGNITION

Your Directors are pleased to inform that your Company has won many accolades, for instance:

Q CII (ER) Productivity Award - 1st position for sustained level of High Overall Productivity for 2004-05.

Q CII (ER) Productivity Award - 2nd position for significant improvement in productivity for 2004-05.

Q Udyog Ratna Award conferred by Institute of Economic Studies, Delhi - For excellence in productivity, quality,

innovation and management.

Q CAPEXIL Export Award - For highest export in the Eastern Region for 2003 -04.

Q Social Awareness Award conferred by FIMI for 2003 -04.

Q The Subh Karan Sarawagi Environment Award, 2004-05 for outstanding contribution towards Environment

Conservation and Rational Utilization of Natural Resources awarded by the Federation of Indian Mineral Industries

(FIMI).

Q Mines Safety and Mines Environment & Mineral Conservation Week Programme Awards

Ø Reclamation & Rehabilitation- 1st Prize for 2004.

Ø Afforestation - 2nd Prize for 2004

Ø Installation and use of mechanical beneficiation and utilization of sub - grade mineral - 3rd Prize.

Q Greentech Safety Silver Award for 2004-05.

FUTURE PROSPECTS

Your Company expects substantial growth in its overall performance in the future years.

OVERVIEW

Your Company has delivered an excellent performance across all measures amidst significant challenges and a vibrant Indian Economy. The Company achieved highest ever Net Profit of Rs. 3600.000 millions, an increase of 184% over previous year on a record breaking Turnover of Rs. 11120.000 millions, a growth of 171% over the previous year.

The international price of iron ore which is settled annually, on calendar year basis for European and Japanese Steel Mills and on fiscal year basis for others, increased by about 71.5%, on FOB contracts. This jump in the price is the highest ever and may be attributed to over 7% apparent growth in finished steel consumption globally. This consumption growth was largely driven by China, with a 22% increase in apparent consumption of steel during FY05. This phenomenal growth in steel production, particularly in China, within a short period, created a huge demand-supply gap for iron ore and shipping capacity worldwide.

The unprecedented rise in spot market prices as well as sea freight, led to speculative trading in domestic and export markets, placing the local transportation and port infrastructure under enormous pressure.

Your company could quickly ramp up production capacity and thus cater to the growing Chinese demand.

STRATEGIC INITIATIVES

Wind Power - A Step Towards Diversification

As a strategic initiative towards diversification, your Company has made a foray into the wind power sector by installing 12 Nos. Wind Mills at Dhule in Maharashtra with a total capacity of 15 MW. The total project cost of Rs. 766.500 millions has been financed through internal accruals and a term loan of USD 11.50 Million borrowed at L1BOR + 100 bps. The investment is estimated to swell your Company's earnings in the years to come.

Your Company is an environmentally conscious corporate citizen and setting up of Green Power is only a further step in this direction.

SEGMENTAL ANALYSIS AND REVIEW

Revenue Mix

Iron Ore continues to be the major revenue driver of the Company contributing to almost 85% of the total revenue of the Company.

PBDIT Mix

Iron Ore continues to be the largest contributor to operating profits of the Company with a share of almost 94% of the total operating profits.

Mining Division

The division has been the star performer, with record in achieving the highest production and sales, including exports as well as highest revenues and profits since inception.

Particulars	FY 2005	FY 2004	% Change
Iron Ore
Production (MT.)	6176167	2902972	112
Sales Volume (MT.)	4786273	2516799	90
Sales (Rs. In million)	94.644	33.100	186
Domestic (Rs. In million)	46.151	19.547	136
Export (Rs. In million)	48.493	13.553	257
PBDT (Rs. In million)	54.268	18.179	198
Operating Profit (%)	57.33	54.92	4.4

During the year the mine at Apahatu has become fully operational which has augmented your Company's production. There has been an overall improvement in the operations at Kasia Mine with the expansion of a new mine at North Block. Stabilization of the crushing plants at Jilling and Apahatu has also provided the necessary fillip to increased productivity.

A Railway Siding set up by Essel Infrastructure division has become operational in April'05, which shall facilitate effective and convenient movement of cargo.

The quality of High Grade Iron Ore Fines, earlier launched in China has been fully accepted by the steel mills. During the year under review, export of High Grade Fines has increased significantly to account for as much as 62% of total exports. This has been objectively done to optimize the product mix and realize the best price advantage.

The division has been continuously striving towards achieving mining operations and creating benchmarks for itself. In the process, your Company has adopted latest equipment such as Hydraulic Drifters, In-pit Crushers and Cone Crushers and the results are amply reflected in its recent performance.

Outlook

Iron ore is a major raw material for production of steel. In FY05, India accounted for around 10% of the world's sea-borne iron ore trade, the third highest after Australia and Brazil. However, in the current year, a strong Chinese demand forecast is likely to increase India's share to 12%. Iron ore, being a bulk commodity, the competitiveness of iron ore mining companies world over depends on productivity, economies of scale and most importantly, cost-competitive logistics, besides cost structure associated with the geology of iron ore reserves.

The overall long-term outlook is positive, despite some softening of demand from China due to governmental curbs on new units and restrictive import policies, etc. The steel sector in India is expected to grow at around 7 to 8% during the current year, while the global growth in consumption is pegged at 3-4 %. This bodes well for the business.

The Mining Division will reap the full advantage of the rising demand in the domestic and global markets. It will focus on the development of specialized products for key market segments and ensure quality through continous improvement in the mining processes, while ensuring cost competitiveness.

Ferro-Chem Division

Particulars	FY 2005	FY 2004	% Change
Noble Ferro Chem
Production (MT.)	1784	1787	(0.16)
Sales Volume (MT.)	1406	1451	(3.10)
Net Turnover (Rs. In million)	15.967	6.697	138
PBDT (Rs. In million)	2.955	0.920	222
Operating Profit (%)	18.50	13.73	35

Being the single largest producer of Noble Ferro Alloys in the country, the division enjoys the largest market share for its products.

Amidst volatility and turbulence in the domestic market, the price trend on the international market for raw materials surged to historic high levels. Amidst this volatility, the division achieved a 136% increase in Net Turnover from Rs. 670.000 millions in FY 04 to Rs. 1580.000 millions in FY 05 although the production volumes have remained constant. It has achieved the highest revenue and profits since inception. Internal cost cutting measures have further strengthened the performance of the division.

The slight dip in the production of Ferro Molybdenum volumes was consciously monitored in order to minimise the incidental risks in the highly volatile Molybdenum market. Two new products, namely, Ferro Manganese Powder &. Ferro Chrome Powder have been introduced in the Low Carbon Ferro Alloys powders segment.

Outlook

Burgeoning growth in the Steel sector augurs well for the business growth of the division in the current year. However, reduction of customs duty in the last budget from 15% to 10% may necessitate competitive pricing of the products in the domestic market. The division shall thrive to maintain its market and cost leadership position through development of new products in its R&D setup and thereby maintain its performance.

Nitrogen Division

Particulars	FY 2005	FY 2004
Nitrogen Gas
Production (Sm3)	8203483	23713
Sales Volume (Sm3)	8203483	23713
Net Turnover (Rs. In million)	59.431	0.172
PBDT (Rs. In million)	34.877	0.106
Operating Profit (%)	58.68	61.62

The Nitrogen Division enjoys the unique distinction of rendering uninterrupted supply of Nitrogen gas to Mangalore Refinery & Petrochemicals Limited (MRPL).

Equipped with minimal manpower, the division has optimized the installed capacity through adoption of world class manufacturing processes in order to cater to the hugely fluctuating requirements of MRPL.

As a business house, we are totally committed to sustainable development. Hence, building eco-efficiency in all of our operations and conserving natural resources comes to us naturally. Your Company has a well-drawn out environmental management strategy in place. Environment concerns are textured into all manufacturing processes and business decisions.

Your Company's Iron and Manganese Mines at Jilling Longalota in the State of Orissa, the Ferro - Chem Plant at Vapi, and the Nitrogen Gas Division at Mangalore have continued to be certified under ISO 14001 Environment Management System. Additionally, the Mining and Nitrogen Gas Divisions have also earned OHSAS 18001 (Occupational Health and Safety Assessment System) Certification.

The Company's performance is detailed through an environmental matrix prepared by professional Environmental Audit consultants. Private agencies such as Enercon Pvt. Limited, Bangalore are engaged to carry out energy conservation studies at the mines. Their Audit Reports reconfirm that we are environment sensitive and relentless efforts have been made to keep the environment eco-friendly.

Many accolades have been conferred on your Company for its singular contribution to environment conservation and safety.

The Mining Division has been the recipient of:

• The Subh Karan Sarawagi Environment Award, 2004-05 for outstanding contribution towards Environment

Conservation and Rational Utilization of Natural Resources, awarded by the Federation of Indian Mineral Industries

(FIMI).

• Awards during the Mines Environment & Mineral Conservation Week for the year 2004-05:

> 1st Prize - Reclamation & Rehabilitation

> 2nd Prize - For Afforestation

> 3rd Prize - For Installation and use of mechanical beneficiation and utilization of sub-grade mineral.

Developing a green belt around the Mines

Your Company's Mining Division addresses the key environmental issues related to mining, namely, soil degradation, deforestation, accumulation of solid waste, air-borne dust emission, noise and water pollution etc. The Ferro-Chem Division has also established and consolidated its Environmental Management System with the available best practices already in place, demonstrating sensitivity to the surrounding area and community (due to air pollution by logistic movement). Both the units have a sound management system in place as well as comprehensive Environmental Policy Statements with defined objectives and goals.

Your Company's mines have been mechanized. The overburden removal, drilling, blasting, excavation and transportation, ore raising, crushing, screening, sizing, stacking and loading are carried out by mechanized means. While ore sorting is carried out through manual means for adhering to the quality of ore as per customer's specification.

An attempt has been made to adopt environment friendly mining technology, which ensures sound Top Soil Management by utilizing around 150 cubic meter of top soil for Nursery and Plantation at the mines.

Considerable investment to the tune of Rs. 64.700 millions has been made towards afforestation, reclamation, restoration and retaining wall around waste dump, water sprinkling for dust suppression as well as environmental analysis.

Your Company's Mining Division has achieved considerable success in Waste Dump Management. The total area stabilized is around 8.5 hectares, which is 35% of the total dump area. Terracing of the dump, keeping a 1.5 meter height; construction of cement mortar boulder wall and lateritic stone wall around the old waste dump; construction of garland drain around the stone wall beside the dump to check the water pollution and the plantation on the slopes and terrace tops are some of the key features.

Waste material and fine strips are pushed by the dozer to flatten the area further, to enhance capacity for re-dumping of new waste.

Your Company has so far Reclaimed and Rehabilitated around 50 hectares of mined area and additionally covered 8.5 hectares under waste dump management.

To maintain the ambient quality of air and water around the mines, your Company has initiated several steps to reduce the air borne dust within permissible limit under Air Quality and Water Resource Management. These include:

• Installing High Pressure Automised Water Sprinklers to settle the dust on the haul roads and colony areas.

• Use of eco-friendly hydraulic drill machines with in-built dust suppression, collection and disposal systems.

• Setting up a stationary rotating water jet sprinkling system located around the crusher such as near feed bunker,

transfer conveyor, screen conveyor, discharge chute, etc.

• Creating of a Wind barrier between the mines and the residential areas of Langalota/Jajang wind flow by creating

afforestation, which restricts the wind flow.

• Instituting a Dust Encapsulation System at all the critical conveyors and screen.

• Reducing the generation of fines through rubber liners replacing the earlier M.S./ Manganese liners in almost all

transfer chutes.

• Lowering the inter particle collision and impact due to a fall height and to restrict the emission of air borne dust

through the use of Polyurethane impact pads used at the transfer area of conveyors.

Mining activities are carried out far above the ground water level. Mine water accumulated during the monsoons, evaporates within a month. It also percolates into cracks and fissures. Since plant operations involve dry crushing and screening, without washing, there is no effluent discharge. Therefore the perennial water source is not contaminated.

As our country is often faced with drought and severe water shortage, your Company has begun unique rainwater harvesting projects in areas near its plant locations. These efforts are a part of our Environment Management Systems and evolve out of our commitment to ensure quality of life for the communities in proximity to our plants and mines. Key measures include, construction of retaining wall around the perennial Nallah, construction of lateritic cement mortar wall, lateritic stone wall around the waste dump, drinking water pumped from natural seepage (Jharna) and purified through Water Filtration Plant and so on.

Our Board and our colleagues across our plants are fully committed to sustainable development. We are all nature lovers. The green cover in and around our plants, with tens of thousands of trees swaying, is a reflection of our passionate respect for the environment.

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	Indian Rupees
US Dollar	1	Rs.45.73
UK Pound	1	Rs.85.81
Euro	1	Rs.58.48

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

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