MIRA INFORM REPORT

Report Date :

30^TH May 2006

IDENTIFICATION DETAILS

Name :	ISPAT INDUSTRIES LIMITED
Registered Office :	“Park Plaza”, 71, Park Street, Kolkata – 700 016, West Bengal, INDIA
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	23^rd May 1984
Com. Reg. No.:	21-37519
CIN No.: [Company Identification No.]	U99999WB1984PTC037519
TAN No.: [Tax Deduction & Collection Account No.]	CALI01452D
PAN No.: [Permanent Account No.]	AAACI6293E
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing and Selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct reduced iron and PVC coated sheets

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow by average 30 days
Litigation :	Unknown
Comments :	Subject is an established company having moderate performance and track records. The company runs with a very thin margin. It has substantial accumulated losses. Payments are reported as slow by average 30 days. The company can be considered normal for business dealings at usual trade terms and conditions with some caution.

LOCATIONS

Registered Office :	“Park Plaza”, 71, Park Street, Kolkata – 700 016, West Bengal, INDIA
Tel. No.:	91-33-2249 2213 / 3119 / 5102 / 5104 / 2249 1011
Fax No.:	91-33-2249 1956
E-Mail :	1. ispat.park@ndil.sprintrpg.ems.vsnl.net.in 2. ispatcal@giascl01.vsnl.net.in 3. sseshadri@scasablanca.iil.co.in
Website :	http://www.ispatgroup.com http://www.ispatind.com
Plants :	q Cold Rolling Mill and Coating Plant Complex: A-10/1 MIDC Industrial Area, Kalmeshwar – 441 501, District Nagpur, Maharashtra, India q Sponge Iron Plant: Geetapuram, Dolvi – 402 107, Taluka Pen, District Raigad, Maharashtra, India q Hot Strip Mill: Gettapuram, Dolvi – 402 107, Taluka Pen, District Raigad, Maharashtra, India
Central Marketing Office :	Poonam Plaza, Palm Road, Civil Lines, Nagpur 440 001, Maharashtra, India

DIRECTORS

Name :	Mr. M. L. Mittal
Designation :	Chairman Emeritus
Name :	Mr. Pramod M. Mittal
Designation :	Chairman & Managing Director
Name :	Mr. V. K. Mittal
Designation :	Managing Director
Name :	Dr. A. Besant C. Raj
Designation :	Director
Name :	Mr. U. Mahesh Rao
Designation :	Director
Name :	Mr. Manu Chanda
Designation :	Director
Name :	Mr. V. Prakash
Designation :	Director – ICICI Nominee
Name :	Mr. Sanjeev Ghai
Designation :	Director – IFCI Nominee
Name :	Mr. C. P. Philip
Designation :	Director – IDBI Nominee
Name :	Mr. M. Sankaranarayanan
Designation :	Director – UTI Nominee
Name :	Mr. Vinod Garg
Designation :	Executive Director (Marketing)
Name :	Mr. Anil Sureka
Designation :	Executive Director (Finance)
OTHER PERSONNEL
Mr. T. P. Subramanian	Senior Vice President and Company Secretary

KEY EXECUTIVES

Name :	Mr. P. K. Mittal
Designation :	Vice Chairman & Managing Director
Date of Birth/Age :	46 Years
Qualification :	B.com, DBM
Experience :	28 Years
Date of Appointment :	01.06.1986

MAJOR SHAREHOLDERS

Names of Shareholders	No of Shares	Percentage of Holding
Promoters Holding:-
Promoters
Indian	230512702	18.86
Foreign	399291216	32.66
Persons acting in concert	---
Sub- Total	629803918	51.52
Non- Promoters Holding
Institutional Investors
Mutual Fund & UTI *	1539964	0.13
Banks, Financial Institutions/ Insurance Companies (Central / State Govt. Institutions / Non-Government Institutions) **	439185274	35.93
FIIs	7140	0.00
Sub- Total	440732378	36.05
Others
Private Corporate Bodies	9930931	0.81
Indian Public	138016833	11.29
NRIs/ OCBs	3918602	0.32
Any other :
Foreign Company	39360	0.00
Foreign National	196	0.00
Sub- Total	151905922	12.43
GRAND TOTAL	1222442218	100

Includes Foreign Mutual Fund - 73500

** Includes Foreign Financial Institutions - 3272269

Note :

1) Total Foreign Shareholding 406602283 33.26%

2) Details of Shareholders holding more than 1% shares is enclosed as Annexure

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct reduced iron and PVC coated sheets.

PRODUCTION STATUS

The company’s production status as on 31^st March, 2005 was as under

Class of goods	Installed Capacity MT	Production MT
Direct Reduced Iron	16,00,000	10,56,494
Hot Rolled Coils	24,00,000	19,63,051
Cold Rolled Carbon Steel Sheets/Coils	3,30,000	3,27,817
Galvanised Coils/Sheets	3,25,000	3,20,782
PVC Coated Sheets	50,000	24,960

GENERAL INFORMATION

Suppliers :

Ø Vyankatesh Udhyog

Ø Vns Chemicals Industries

Ø Elca Carbone Lorraine Private limited

Ø Nexus Engineering

Ø Gotey Engineers

Ø Geeta Timber Mart

Ø Eastern Chemicals

Ø Prabhat Electricals

Ø Paras Saw Mills

Ø The Asiatic Oxygen

Ø R. N. Patel

Ø Brush India Manufacturing Company

Ø Bajaj Chemicals Industries

Ø Chemtech Industrial Valves Private Limited

Ø Niketa Insulators Private Limited

Ø A S & T India Limited

Ø Smith Glass Product Private Limited

Ø Aditya Air Products Private Limited

Ø Arvind Rub-Web Controls Limited

Ø Devaki Polyfilms Private Limited

Ø Coventry Coil-O-Matic (H) Limited

Ø Anti Corrosive Equipment

Ø B. B. Surface Coating

Ø D. B. Engineering Works

Ø Kings Rolling Machinery

No. of Employees :

4000

Bankers :

v State Bank of India

v Bank of India

v Punjab National Bank

v Indian Overseas Bank

v The Hong Kong and Shanghai Banking Corporation Limited

Facilities :

SECURED LOANS	31.03.2005 Rs. in millions
DEBENTURES
i] Secured Redeemable Non-Convertible Debentures of Rs. 100/- each	3416.800
ii] 10% Secured Redeemable Debentures of Rs. 100/- each	0.700
iii] Settled Interest Amount	1947.400
Term Loans
1] Rupee Loan :
From Financial Institutions :
Term Loans	23580.900
Zero Coupon Loans	1212.600
From Banks :
Term Loans (including Working Capital Term Loan Rs. 989.600 millions)	8701.100
Zero Coupon Loans	8.000
From Others :
HDFC Limited	21.700
2] Foreign Currency Loans :
Financial Institutions	16278.400
Banks	977.300
Working Capital Finance :
From Banks :
In Rupee	541.100
In Foreign Currency	305.600
Others	0.800
TOTAL	56992.400

Banking Relations :	Unknown
Auditors :	S. R. Batliboi & company Chartered Accountants,
Address :	22, Camac Street, Block ‘C’, 3^rd Floor, Kolkata – 700 016, West Bengal, India
Associates/Subsidiaries :	v Kalyani Mukund Limited v Tata Teleservices [Maharashtra] Limited [Formerly Hughes Tele.Com India Limited] v Ispat Profiles India Limited v Ispat Alloys Limited v Gontermann-Peipers (India) Limited v P T Ispat and Others. SUBSIDIARIES v Nippon Ispat Singapore (Pte) Limited v Ispat Energy Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4,000,000,000	Equity Shares	Rs. 10/- each	Rs. 40000.000 millions
100,000,000	Preference Shares	Rs. 100/- each	Rs. 10000.000 millions
1,000,000,000	Preference Shares	Rs. 10/- each	Rs. 10000.000 millions
	Total		Rs. 60000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
692,590,311	Equity Shares of	Rs. 10/- each	Rs. 6925.900 millions
Less:	Allotment & Call Money in Arrears		Rs. 67.900 millions
29,599,500	12% Cumulative Redeemable Preference Shares (redeemable at par in Thirteen Annual instalments commencing from 31^st March, 2008)	Rs. 100/- each	Rs.2959.900 millions
155,112,156	10% Cumulative Redeemable Preference Shares fully paid-up (Redeemable at par in Eight quarterly instalments commencing from 15^th June, 2018)	Rs. 10/- each	Rs. 1551.100 millions
	TOTAL		Rs. 11369.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		11369.000	9817.600	9817.500
2] Share Application Money		5888.400	3250.000	2795.600
3] Reserves & Surplus		11020.000	9159.600	9692.300
4] (Accumulated Losses)		0.000	(4815.900)	(5551.300)
NETWORTH		28277.400	17411.300	16754.100
LOAN FUNDS
1] Secured Loans		56992.400	62237.600	58712.400
2] Unsecured Loans		1329.900	6150.100	6466.100
TOTAL BORROWING		58322.300	68387.700	65178.500
DEFERRED TAX LIABILITIES		88.300	0.000	0.000
TOTAL		86688.000	85799.000	81932.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61698.300	66492.600	27418.800
Capital work-in-progress		6303.700	4723.700	21734.700
Pre-operative & Trial Run Expenses		3029.700	2813.500	22278.600
INVESTMENT		534.300	529.900	550.500
DEFERREX TAX ASSETS		0.000	1912.700	2071.600
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6290.200	4765.800	3132.900
	Sundry Debtors	10669.900	4339.000	4449.400
	Cash & Bank Balances	1225.400	1106.000	941.200
	Loans & Advances	7863.200	6648.800	6972.100
Total Current Assets		26048.700	16859.600	15495.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	10835.700	7811.800	8200.100
	Provisions	91.000	78.000	54.900
Total Current Liabilities		10926.700	7889.800	8255.000
Net Current Assets		15122.000	8969.800	7240.600
MISCELLANEOUS EXPENSES		0.000	356.800	637.800
TOTAL		86688.000	85799.000	81932.600

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	61128.900	38205.300	31610.800
Profit/(Loss) Before Tax	4904.000	602.100	665.200
Provision for Taxation	(2056.600)	158.900	[163.100]
Profit/(Loss) After Tax	6960.600	443.200	828.300
Export Value	16680.700	7931.400	7992.900
Import Value	5824.000	3358.500	1460.00
Total Expenditure	56224.900	37603.200	32786.100

SUMMARISED RESULTS

Particulars	31.03.2006
Type	Full Year
Sales Turnover	49587.400
Other Income	519.900
Total Income	50107.300
Total Expenditure	46993.400
Operating Profit	3113.900
Interest	9368.100
Gross Profit	-6254.200
Depreciation	5714.300
Tax	44.900
Reported PAT	-8126.700
Dividend (%)	00.000

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt Equity Ratio	4.35	6.62	6.84
Long Term Debt Equity Ratio	4.26	6.43	6.57
Current Ratio	1.44	1.40	1.05
TURNOVER RATIOS
Fixed Assets	0.82	0.71	0.92
Inventory	11.32	10.07	11.99
Debtors	8.34	9.05	7.55
Interest Cover Ratio	1.77	1.17	0.74
Operating Profit Margin (%)	25.15	15.98	14.32
Profit Before Interest and Tax Margin (%)	18.18	10.46	7.86
Cash Profit Margin (%)	13.10	6.64	4.23
Adjusted Net Profit Margin (%)	6.13	1.11	[2.23]
Return on Capital Employed (%)	14.18	5.10	3.43
Return on Net Worth (%)	28.98	3.60	[7.83]

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. 15.75/-
Low	Rs. 15.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 23^rd May 1984 as a Public Limited company having Company Registration Number 37519, under the name and style of Mittal Galvanic Limited and obtained the Certificate of Commencement of Business on 26^th May, 1984. The name of the company was subsequently changed to Nippon Denro Ispat Limited and a fresh Certificate of Incorporation consequent to the change in name was obtained on 22^nd April 1985. The company commenced commercial production in October 1985. Subsequently, the name of the company was changed to present.

The company manufactures all type of galvanized plain/corrugated steel sheets/strips, coils and sponge iron. The company has its own plants at Nagpur and Raigad, in Maharastra, both of which have been accredited with ISO 9002 certification by the Bureau of Indian Standard. It has set up a cold-rolling mill in technical collaboration with Nippon Denro and Hitachi, Japan. Later it set up the world's largest sponge iron plant, with a capacity of 1 mtpa in Raigad, Maharastra. The plant has acquired the latest direct-reduction technology from Midrex Corporation, USA, the world leaders in this field.

The company came out with a Euro-issue of 125-mln fully convertible bonds in 1994 to part-finance the expansion of its hot strip mill (HSM) capacity to 0.250 mln tpa. As a forward integration to the existing sponge iron plant at Dolvi and backward integration to the existing cold rolling complex at Nagpur, the company has set up facilities to manufacture HR steel and coils of thickness ranging between 1.2 mm to 2.5 mm and width ranging from 900 mm to 1560 mm. The company plans to diversify into power, telecommunication, infrastructure and mining.

The company has appointed UK-based marketing consultants, Kemp System, to undertake a marketing study for its proposed Rs. 60000.000 millions refinery in Kakinada, Andhra Pradesh to identify the potential for the refinery`s products in the domestic as well as the overseas markets. The company is also setting up a captive jetty at the Vizag Port, and expanding its Dolvi terminal in Maharastra. The company plans to take a 51% stake in Ispat Energy Limited which was incorporated to supply power to company's sponge iron and hot-rolled coils plant at Dolvi in Maharastra.

The first phase of Hot rolled coils project commenced and the second phase was postponed due to paucity of funds and is expected that the company would be able to ramp up the capacity of HR coil product to 2.4 million p.a. by March, 2003. The company has undertaken a debottlenecking program of the 1.2 million tpa sponge iron plant. It entered into a tri-partite agreement with Kalyani Mukund Limited and Gas Authority of India limited (GAIL) for allocation of additional Natural Gas.

Financial Institutions cleared the financial restructuring programme of the company. Under the financial restructuring programme Rs. 5100 millions of the debt for the company's hot rolled coil project at Dolvi will be converted into various forms of equity - Rs. 3100 millions into equity and over Rs. 2000 millions into 1% non-cumulative preference shares. With the conversion of debts, the institutions stake in the company will go up to 48% while that of the promoters will also be at 48%. The rest will be with the public. The restructuring exercise is also learnt to include writing down 50% of the existing equity base of the company which is at Rs. 6930 millions.

Ispat Energy Ltd (a Subsidiary company of Ispat Industries Ltd) is planning to set up power plant with a capacity of 250 MW. However IEL has decided to inititally implement 110 MW second hand plant only as this will be having a gestation period of 12-14 months and also at a lower capital cost.  

To provide basic Telecom Services in Maharashtra and Goa the company had promoted a JV company in the name of Hughes Ispat Ltd now changed to Hughes Tele.com(India) Ltd. The company with other promoters viz Hughes Electronics Corporation,Alltell Corporation,Ritambara Agents Private Ltd have agreed to sell Hughes Tele.com Ltd to Tata Tele Services Ltd. 

Ispat Metallics India Ltd (IMIL) would be merged with IIL with effect from 1st April 2003, under the corporate debt restructuring mechanism, approvals are awaited from Central Government.

BUSINESS

The company is engaged in manufacturing and selling of galvanized coils/ sheets, cold rolled carbon steel sheets/coils, direct reduced iron and PVC coated sheets.

Generic Names of the Principal Products of Company (as per monetary terms) are as under:

Item Code No. (ITC Code)	Product Description
720826 00	Hot Rolled Coils
720310 00	Director Reduced Iron
720927 00	Cold Rolled Sheets
721030 00	Galvanised Sheets

FINANCIAL RESULTS

Sales and other income for the financial year under review were Rs.64593.900 millions representing an increase of 57% over the previous financial year. Profit before interest and finance charges, deferred revenue expenses and depreciation was Rs.14961.300 millions registering an impressive increase of 137% over the previous financial year. After providing for interest and finance charges, deferred revenue expenses and depreciation, the profit before tax for the financial year was Rs.4904.000 millions compared to the profit before tax of Rs.602.100 millions during the previous financial year. Considering the exceptional gain of Rs.4051.400 millions arising during the year, upon settlement of liabilities towards Euro Convertible Bonds, and after providing for Deferred Tax Charges,and considering write-back of tax provisions for earlier years, the profit after tax for the year under review was Rs.6960.600 millions. Consequently, the entire accumulated losses of Rs.4815.900 millions at the beginning of the financial year under review stand adjusted. The balance profit of Rs.2144.700 millions is proposed to be carried to the next year's accounts. 

OPERATIONS

The accelerated growth of the Steel Industry continued through the year. The optimistic outlook of the economy had spurred domestic demand. Global consumption of steel had also strengthened, with China and major European Countries registering significant economic gains. 

 Production of Hot Rolled Coils at 1.96 Million MTs during the year represents utilization of over 81.7% of available capacity. Production of Hot Rolled Coils was higher by around 22% over the previous financial year. The Hot Rolled Coils plant capacity is sought to be enhanced to 3.0 Million MTs during the current financial year. 

 Production of Direct Reduced Iron (Sponge Iron) at 1.05 Million MTs during the year was marginally lower than the previous year. Availability of Natural Gas continues to be a major bottle-neck hampering production and utilization of available capacities. Production of Cold Rolled Steel Coils/ Sheets, Galvanized Coils/ Sheets and PVC Coated Sheets during the year was higher in each of the respective segments, as compared to the previous year. 

 Raw material costs constitute nearly 480/a of the revenue from sales. The buoyancy witnessed in the steel sector had led to increase in prices of various inputs as well as logistic costs. Additionally, increased demand conditions led to periodic deficiencies in supplies of core inputs, resulting in higher costs. 

EXPANSION AND NEW PROJECTS 

 The capacity of the Hot Rolled Coils Plant is being enhanced to 3.0 Million MTs by the addition of Electric Arc Furnace and Gas Cleaning Plant. The capacity enhancement is scheduled to be completed during the current financial year. 

 With a view, to achieve savings in costs and improve process efficiencies, the Company plans to commission an oxygen plant of the capacity of 1260 Tons per day as well as a Sinter Plant of the annual capacity of 2.0 Million MTs. Both the projects are at an advanced stage of implementation and are scheduled to be commissioned during the current financial year. 

EXPORTS

The Company continues to focus on strengthening its presence in global markets. The entire thrust is on branding and creating a niche market for the Company's value-added products. The product-mix is being constantly adjusted to meet international demand and various steps initiated to move-up the value chain. 

 As a result of sustained efforts, The Company's export earnings during the year was Rs.16680.000 millions constituting over 26% of its total sale's income. Export earnings during the year was higher by 110% over the previous year. Your Company bears the distinction of being recognized, as a '.Four Star Export House' under the current Foreign Trade Policy of Government of India. 

RESTRUCTURING SETTLEMENTS 

 The restructuring agreements entered into with IFC (Washington) and KFW were duly settled during the year. The entire settlement dues of both the lenders have been fully discharged. 

 The Company's outstanding Euro Convertible Bonds have also been restructured during the year. The restructured obligations are being duly discharged by the Company, in accordance with the settlement agreement entered into with the Bondholders. 

 The Company's dues to Unit Trust of India in respect of Non Convertible Debentures / Term Loans have also been restructured during the year. The restructured obligations, under the settlement proposal agreed to by UTI, are being regularly met by the Company. 

 The Board wishes to place on record its appreciation to IFC (Washington), KFW Euro Bond Holders and their Trustees as well as UTI for their understanding and forbearance. 

 CAPTIVE POWER PLANT OF ISPAT ENERGY LIMITED 

 The Captive Power Plant (combined capacity. 110 MW) equipments of Ispat Energy Limited, have already arrived and are presently under clearance. Delays in clearance and commissioning are due to the fact that financial closure of the project is yet to be achieved. The Company is in discussions with various lenders to tie-up its project cost requirements. 

 SCHEME OF RECONSTRUCTION AND AMALGAMATION 

 The Scheme of Reconstruction of the Share Capital of the Company and the subsequent merger of Ispat Metallics India Limited (IMIL) with your Company is pending for sanction by the respective Hon'ble High Courts of Calcutta and Bombay. In terms of the orders of the said High Courts, separate meetings of creditors and members of the respective companies have been held to consider and approve the scheme. The requisite majorities of creditors and members have since approved the Scheme. The Petitions for sanction of the Scheme are scheduled to be heard by the respective Hon'ble High Courts during July and August, 2005. 

FIXED ASSETS:

The company’s fixed assets of important value include building, plant and machinery, electrical installations, vehicles, furniture and fixtures, air conditioners, office equipment, computers and refrigerators.

Press Release:

ISPAT'S Q1 AUDITED RESULTS

August 30, 2005

Ispat Industries Limited’s (IIL) earnings before interest, depreciation and tax (EBIDTA) for April-June, 2005, quarter (Q1) at Rs 2679.9 Millions registered a 29% increase compared to an EBIDTA of Rs 2071.9 Millions recorded in Q1 of 2004-05. IIL posted a profit after tax (PAT) of Rs 12.0 Millions for the April-June, 2005 quarter (Q1), as against a net loss of Rs 456.2 Millions during Q1 of 2004-05.

IIL registered a gross income from operations of Rs 13111.5 Millions in April-June 2005, compared to an income from operations of Rs 13074.1 Millions during the corresponding quarter of 2004-05.

The Board of Directors of IIL approved the company’s audited financial results for the quarter ended June 30, 2005 at its meeting in Mumbai on August 30, 2005. IIL carried out revamping and modification of its Directly Reduced Iron (DRI) Plant during Q1 of 2005.

IIL produced 4.98 Millions tonnes of Hot Rolled Coils during April-June 2005 quarter. Production of HRC was higher by 22% compared to same period last year.

To improve its cost of production, IIL is presently implementing its 2.2 million tonnes Sinter Plant and 1260 tonnes per day Oxygen Plant at its integrated steel complex in Dolvi, near Mumbai. IIL’s hot rolled steel making capacity at Dolvi is also being increased from 2.4 million tonnes to 3.0 million tonnes. All the above facilities will be commissioned in the 3^rd quarter of the current financial year.

The Scheme of Reconstruction and Amalgamation of Ispat Metallics India Ltd. with Ispat Industries Ltd. has been approved by the High Courts of Calcutta and Bombay. Requisite actions are being taken by both the companies to make the merger effective.

ISPAT INDUSTRIES LIMITED REPORTS AN INCREASE OF 137% IN ITS EBIDTA

Mumbai 29 June, 2005:

Ispat Industries Limited (IIL) has reported an increase of 137% in its Profit before Interest and Finance Charges, Depreciation and Deferred Revenue Expenditure (EBIDTA) of Rs.1496.13 Millions for the financial year ended March 31, 2005 as against Rs.6322.9 Millions s for the year ended March 31, 2004.

The annual results of the company were approved by the company's Board of Directors, which met earlier today to consider the company's performance. According to the press-release issued by the company today, Ispat Industries Limited recorded an Income from Operations of Rs. 64593.9 Millions for the financial year ended March 31, 2005 registering an increase of 57% over the previous financial year.

In the year under review, the company produced more than 1.96 million tonnes of Hot Rolled Coils, an increase of around 22% over the previous financial year. The Net Profit for the year was Rs. 696.06 Millions

The company has reported that the capacity of its Hot Rolled Coil Mill is sought to be enhanced to 3.0 million tonnes per annum by September 2005.

Ispat posts Rs 497.70 Millions Q3 PAT
January 25, 2005

Ispat Industries Limited (IIL) posted a profit after tax (PAT) of Rs 497.70 Millions for the quarter ended December 2004 (Q3) as against a PAT of Rs 282.8 Millions during the third quarter ended December 31, 2003.

IIL registered a net total income of Rs 16431.8 Millions in the third quarter of October December 2004, an increase of 55 per cent compared to its income of Rs 10619.1 Millions posted in the corresponding period of last year.

IIL’s PAT was boosted by exceptional earnings of Rs 4051.4 Millions, arising from the settlement of the $125 million Euro bonds. During the quarter, IIL reached an agreement with Euro bondholders to settle the principal and outstanding amount at 25 cents to a dollar.

Notwithstanding income from exceptional items, IIL’s earnings before interest, depreciation and tax (EBIDTA) for Q3 2004-05 stood at Rs 4182.3 Millions, a 135 per cent increase compared to an EBIDTA of Rs 1778.00 Millions recorded in Q3 of last year.

IIL’s profit before tax (PBT) and exceptional items for Q3 2004-05 at Rs 1353.6 Millions also registered a 224 per cent increase compared to PBT and exceptional items in Q3 of 2003-04.

Financials for October-December, 2004
	Oct – Dec ’04 (in Rs Millions)	Oct – Dec ’04 (in Rs Millions)	% change	Apr – Dec ’04 (in Rs Millions)	April – Dec ’03 (Rs Millions)	% change
PAT	4977.0	282.8	1660%	529.55	179.4	2852%
Total Income	16431.8	10619.1	55%	4409.49	26939.9	64%
EBIDTA	4182.3	1778.6	135%	1037.90	4243.7	145%
Profit before Exceptional Items & Tax	1353.6	417.9	224%	1815.5	280.2	548%
PBT	5405.0	417.9	1193%	5866.9	280.2	1994%
Basic EPS (in Rs)	69.8	02.6	-	70.2	(01.8)	-

M/s Ispat Metallics India Limited (IMIL) is proposed to be merged with the company effective from April 1, 2004. Pending various approvals concerning this merger, the above results are exclusive of the provisional losses of IMIL, aggregating to Rs 3510 Millions approximately for the nine-month period ended December 31, 2004.

The Board of Directors of IIL approved the company’s unaudited financial results for the quarter ended December 31, 2004 at its meeting held in Mumbai on January 24, 2005.

For the nine months ended December 31, 2004, IIL posted a PAT of Rs 5295.5 Millions compared to a PAT of Rs 179.4 Millions for the corresponding period last year. IIL’s EBIDTA for the nine months ended December 31, 2004, at Rs 10379.0 Millions saw an increase of over 145 per cent compared to last year’s corresponding nine month EBIDITA of Rs 4243.7 Millions.

IIL’s PBT for the first nine months ended December 31, 2004 was at Rs 5866.9 Millions compared to a PBT of Rs 280.2 Millions in the corresponding period of last year, registering an increase of 1994 per cent.

In Q3 2004-05, IIL produced 0.530 Millions tonnes of hot rolled steel, which was higher by 25 per cent compared to the same period last year. The F.O.B. value of IIL’s exports for the nine-month period ended December 31, 2004 stood at Rs 12581.3 Millions, a 124 per cent increase compared to the same period last year.

Production for Oct – Dec 2004
	Oct – Dec ’04	Oct – Dec ’03	% change
Hot Rolled Steel	529925	422950	25%
Cold Rolled Steel	79215	75447	5%
Galvanised Steel	77088	73773	4%
(figures in metric tonnes)

IIL’s 2.4 million tonne (MT) hot rolled steel making capacity at Dolvi is being increased to over 3 MT. Implementations of the sinter plant, an oxygen plant and a second electric arc furnace are in the advanced stages. The completion of the above facilities would add to the profitability of the company

Ispat posts impressive Rs 77.47 Millions Q2 PAT
October 26, 2004

Ispat Industries Limited (IIL) posted a profit after tax (PAT) of Rs 77.47 Millions for the quarter ended September 2004 as against a net loss of Rs 212.4 Millions during the corresponding quarter last year.

IIL registered an income from operation of Rs 15899.9 Millions in Q2 2004-05, an increase of 70 per cent over the income of Rs 9366.1 Millions posted in the same period last year. IIL's total income, net of excise, at Rs 15233.2 Millions in the current year's Q2, saw an increase of 77.4 per cent over the corresponding income of Rs 8587.00 Millions in Q2 of last year.

Financials for July-September 2004
	July-Sept ’04 (in Rs Millions)	July-Sept ’03 (in Rs Millions)	Percentage Change
PAT	774.7	(212.4)	-
Total Income	15233.2	8587.0	77.4%
EBIDTA	4124.8	1399.6	194.7%
PBT	1166.7	36.7	3079%
Basic EPS (in Rs)	09.1	(04.5)	-

IIL's earnings before interest, depreciation and tax (EBIDTA) for Q2 2004-05, at Rs 4124.8 Millions, saw an almost 3-fold jump compared to an EBIDTA of Rs 1399.6 Millions recorded in Q2 of last year.

The Board of Directors of IIL approved the company's unaudited financial results for the quarter ended September 30, 2004 at its meeting in Mumbai on October 25, 2004. For the six months ended September 30, 2004, IIL posted a PAT of Rs 318.5 Millions compared to a net loss of Rs 103.4 Millions for the corresponding period last year. IIL’s EBIDTA for the six months ended September 30, 2004 was Rs 6196.7 Millions, an increase of over 150 per cent compared to the corresponding six months of last year. IIL’s PBT for the first six months ended September 30, 2004 stood at Rs 461.9 Millions compared to a net loss of Rs 137.7 Millions in the corresponding period last year.

Production for April-September 2004
	April-Sept ’ 04	April-Sept ’ 03	Percentage Change
Hot Rolled Steel	9,12,485	7,52,052	21.33%
Cold Rolled Steel	1,81,005	1,53,854	17.65%
Galvanised Steel	1,83,635	1,52,778	20.20%

The company produced 0.913 Millions tonnes of hot rolled steel, 0.181 Millions tonnes of cold rolled steel and 1.84 Millions tonnes of galvanised steel in the first six months ending September 30, 2004, registering increases of 21.33 per cent, 17.65 per cent and 20.20 per cent respectively, compared to same period last year.

The F.O.B. value of IIL’s exports for the six month period ending September 30, 2004 stood at Rs 843 Millions, representing an increase of over 132 per cent compared to the corresponding period last year.

IIL’s 2.4 million tonne hot rolled steel making capacity at Dolvi will be increased to over 3 million tonnes by March 2005.

MEMBERSHIPS

Confederation of Indian Industry

ISPAT INDUSTRIES LIMITED

  Regd. Office : Park Plaza, 71, Park Street, Kolkata - 700 016

AUDITED FINANCIAL RESULTS FOR THE QUARTERS ENDED 31st DECEMBER 2005 & 31st MARCH '2006 AND
FOR THE YEAR ENDED 31st MARCH '2006

		(Rs. Millions)
Sl. No.	Particulars	Audited Consolidated Financial Results for the Year ended 31st March
		2006
1	Sales/Income from Operations	55800.200
	Less : Excise Duty	6212.800
		49587.400
2	Other Income	519.900
3	Total Income (1+2)	50107.300
4	Total Expenditure
	a) (Increase) / Decrease in Stock in Trade	(735.300)
	b) Materials  Consumed	29101.200
	c) Purchase of Finished Goods	-
	d) Power & Fuel Cost	8498.600
	e) Personnel Cost	1317.100
	f) Other Expenditure	8823.900
	Total Expenditure (4a to 4f)	47005.500
5	Profit/(Loss) before interest & Finance Charges, Depreciation, Deferred Revenue Expenditure, Exceptional Items & Tax (3-4)	3101.800
6	Interest & Finance Charges	9368.100
7	Depreciation	5714.300
8	Deferred Revenue Expenditure Written off	-
9	Profit/(Loss) before Exceptional Items & Tax (5-6-7-8)	(11980.600)
10	Exceptional Items (Net)	-
11	Profit/(Loss) before Tax (9-10)	(11980.600)
12	Provision for Taxation (Net)
	- Current	(00.300)
	- Deferred Tax (Charge)/Credit	3886.7 00
	- Fringe Benefit Tax	(44.800)
13	Net Profit/(Loss) (11-12)	(8139.000)
14	Share of Loss of an associate company	-
15	Consolidated Profit/(Loss) (13-14)	(8139.000)
16	Paid-Up Equity Share Capital	12183.800
	(Equity Share of Rs.10/- each)
17	Reserves excluding Revaluation Reserve	5317.900
18	Basic EPS                 (Rs.)	(7.93)
	Diluted EPS              (Rs.)	(7.93)
	(Not Annualised)
19	Aggregate of Non promoter shareholding
	- Number of shares	592638300
	- Percentage of shareholding	48.48

Notes:

 1. The following are the main reasons for the adverse performance of the Company during the year :

(a) Non-availability of captive sponge iron due to capital repairs undertaken in the sponge iron plant during the period 8th May, 2005 to 11th June, 2005. Further, the fire in ONGC’s Bombay High North platform on 27th July, 2005 resulted in the stoppage/reduction in the supply of natural gas which is the basic feedstock for Company’s sponge iron unit with consequent lower availability of metallics input to Hot Rolled Coil plant for steel making. Sourcing of sponge iron from the market has added to the higher cost of production.

(b) Loss in production of Hot Metal for almost a month during September-October 2005 due to chilling of Blast Furnace arising out of uncontrollable factors.

(c) Steep fall in the prices of finished steel products. The reduction in the cost of raw material was not commensurate with the reduction in prices of finished goods.

(d) Inclusion of losses of Ispat Metallics India Ltd. (IMIL) as indicated in Note 4(a) below, in the financials of the Company consequent to merger of IMIL with the Company.

2. Significant activities completed during the year are as under : 

(a) With the commissioning of an additional state-of-the-art Electric Arc Furnace and related facilities, capacity of Hot Rolled Steel Coil Plant has been enhanced from 2.4 Million Tons per annum to 3.0 Million Tons per annum and operations of additional capacities have stabilized.

(b) Sinter Plant of the annual capacity of 2.24 Million Tons per annum has been commissioned in December 2005. Plant operations have since stabilized.

(c) Oxygen Plant of the daily capacity of 1260 Tons has been commissioned in December, 2005. Plant Operations have since stabilized. Consequently, no dependence on external sources for oxygen supply.

Consequent to commissioning of the aforesaid projects, productivity and efficiency stand enhanced while input costs have reduced.

  3. Commencing March 2006, market for steel products, both international and domestic, has shown marked improvement.

4.

(a) The Scheme of Reconstruction and Amalgamation ("Scheme"), approved by the Hon'ble High Courts at Calcutta and Bombay, has become effective from 26th October 2005. In terms of the said "Scheme", Ispat Metallics India Limited (IMIL) stands amalgamated with Ispat Industries Limited. The Amalgamation Appointed Date, in terms of the "Scheme", is 1st April 2004.
Accordingly, the above results for the period ended 31st December 2005 and for the year ended 31st March 2006 are inclusive of the losses in IMIL, aggregating to Rs.2254.4 Millions for the period 1st April, 2005 to 26th October 2005. The results for the financial year ended 31st March 2005 are, however, exclusive of losses in IMIL aggregating to Rs. 4834.4 Millions for the aforesaid year.

(b) Allotment of Equity Shares and Cumulative Redeemable Preference Shares stands duly made, in terms of the said “Scheme”.

5. The Auditors in their reports on the Company’s Accounts for the quarter ended 31st December 2005 and year ended 31st March, 2006 have expressed their inability to express any opinion on the accounting of Deferred Tax Asset of Rs.4493.5 Millions and Rs.6283.0 Millions respectively. However, based on the future profitability projections, evidenced by a significant turnaround in the operational performance in April 2006 which trend is likely to continue, the Company is virtually certain that there would be sufficient taxable income in the future, to claim the above tax credit.

6. The company has identified Iron & Steel products as its sole operating segment and, hence, no further disclosure is applicable under Accounting Standard 17.

7. Previous years’ figures have been re-grouped/ re-arranged wherever necessary. Further, figures for the quarters ended 31st December 2005 and 31st March 2006 and 9 months period ended 31st December 2005 and year ended 31st March 2006 are inclusive of the figures of erstwhile Ispat Metallics India Ltd which merged with the Company effective from 1st April 2004, and are therefore not comparable with the corresponding figures for the respective quarters / period / year.

  8. (a) At the beginning of the December 2005 quarter, there were no complaints from investors pending for disposal. During the quarter, 377 complaints were received and all were disposed off. At the end of the quarter, no complaints from investors were pending for disposal.

(b) At the beginning of the March 2006 quarter, there were no complaints from investors pending for disposal. During the quarter, 210 complaints were received and all were disposed off. At the end of the quarter, no complaints from investors were pending for disposal.

9. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 9th May and 10th May, 2006 respectively.

ISPAT INDUSTRIES LIMITED

List of Shareholders having Equity Shares above 1% as on 31st March, 2006

Name of Holder	No. of Shares held	Total	Percentage
Promoters' Holding
Indian Promoters
GPI Investments Pvt. Ltd.	15344454		1.26
Ushaditya Investments Pvt. Ltd.	23254948		1.90
Goldline Tracom Pvt. Ltd.	33188768		2.71
KartikCredit Pvt. Ltd.	28443051		2.33
Denro Holdings Pvt. Ltd.	23487264		1.92
Mita Holdings Pvt. Ltd.	25466408		2.08
Ispat Holdings Pvt. Ltd.	20605212		1.69
Total		169790105
Foreign Promoters
Ispat Steel Holdings Ltd.	272193401		22.27
Indethal Holdings Limited	19512060		1.60
Securex Holding Ltd.	34382299		2.81
Aldbury International Ltd.	37078637		3.03
Global Steel Holdings Ltd.	32106443		2.63
Total		395272840
Non - Promoter's Holding
Institutional Investors
Banks, Financial Institutions, Insurance Companies
Industrial Development Bank of India Ltd.	152700000		12.49
IFCI Limited	93844663		7.68
State Bank of India	26000000		2.13
Industrial Investment Bank of India Ltd.	13416030		1.10
Life Insurance Corporation of India	43710801		3.58
ICICI Bank Limited	60000000		4.91
Total		389671494
TOTAL		954734439

ISPAT INDUSTRIES LIMITED

List of Shareholders having 0.01% Cumulative Redeemable Preference Shares
above 1% as on 31st March, 2006

Name of Holder	No. of Shares held	Total	Percentage
Promoters' Holding
Indian Promoters
GPI Investments Pvt. Ltd.	10229636		2.11
Ushaditya Investments Pvt. Ltd.	11899771		2.45
Goldline Tracom Pvt. Ltd.	13083789		2.69
Kartik Credit Pvt. Ltd.	15339949		3.16
Denro Holdings Pvt. Ltd.	12462736		2.56
Mita Holdings Pvt. Ltd.	12920277		2.66
Ispat Holdings Pvt. Ltd.	10394788		2.14
Sanwatshri Investments Pvt. Ltd.	6752000		1.39
Total		93082946
Foreign Promoters
Ispat Steel Holdings Ltd.	162352551		33.41
Indethal Holdings Limited	13008040		2.68
Securex Holding Ltd.	22921532		4.72
Aldbury International Ltd.	14615921		3.01
Global Steel Holdings Ltd.	20272616		4.17
Total		233170660
Non - Promoter's Holding
Institutional Investors
Banks, Financial Institutions, Insurance Companies
IFCI Limited	14120288		2.91
Total		14120288
TOTAL		340373894

ISPAT INDUSTRIES LIMITED
SHAREHOLDING PATTERN OF 0.01% CUMULATIVE REDEEMABLE PREFERENCE SHARES AS ON 31ST MARCH, 2006
SL.NO.	CATEGORY	NO. OF SHARES HELD	PERCENTAGE OF SHAREHOLDING
A.	Promoters Holding:-
1	Promoters
	Indian	124189732	25.56
	Foreign	235679544	48.50
2	Persons acting in concert	-
	Sub- Total	359869276	74.06
B.	Non- Promoters Holding
3	Institutional Investors
a.	Mutual Fund & UTI *	1026642	0.21
b.	Banks, Financial Institutions/ Insurance Companies (Central / State Govt. Institutions / Non-Government Institutions) **	23737544	4.89
c.	FIIs	4760	0.00
	Sub- Total	24768946	5.10
4	Others
a.	Private Corporate Bodies	15500593	3.19
b.	Indian Public	83131246	17.11
c.	NRIs/ OCBs	2612412	0.54
d.	Any other :
	Foreign Company	26240	0.01
	Foreign National	131	0.00
	Sub- Total	101270622	20.84
	GRAND TOTAL	485908844	100.00
* Includes Foreign Mutual Fund - 49000
** Includes Foreign Financial Institutions - 2181512
Note :
1) Total Foreign Shareholding		240553599	49.51
2) Details of Shareholders holding more than 1% shares is enclosed as Annexure

Ispat' Q4 and Annual Results for year ended March 31, 2006

Mumbai, May 10, 2006

Highlights:
* Q4 vs. Q3 EBIDT in FY 06 more than doubles
* Q4 vs. Q3 income up
* Company on a turnaround trend
* FY06 and FY05 figures not comparable post IIL-IMIL merger
* Commissioned 2.24 mtpa sinter plant
* Commissioned 1260 tpd oxygen plant
* Additional EAF added to increase HR Coil capacity from 2.4 to 3.0 mtpa

Ispat Industries Limited (IIL) posted earnings before interest, depreciation & tax (EBIDT) of Rs 1626.3 Millions for the quarter ended March 31, 2006 (Q4) against an EBIDT of Rs 748.9 Millions for the previous quarter ended December 31, 2005 (Q3), indicating a turnaround in performance. IIL’s income for Q4 at Rs 1447.67 Millions was also up against a Q3 income of Rs 14234.0 Millions. The trend is continuing with marked improvement in operational performance during April 2006.

IIL produced 2.144 million tonnes of Hot Rolled Coil (HRC) in 2005-06 as against 1.963 million tonnes in 2004-05. HRC sales at 2.108 million tonnes in 2005-06 were higher by 8% over sales during the previous year.

For the full year 2005-06, IIL’s EBIDT was also affected due to losses of Ispat Metallics India Limited (IMIL). The company posted an EBIDT of Rs 3113.9 Millions, after taking into account losses of IMIL during the year. IMIL has merged with IIL effective 26th October, 2005, after obtaining approvals of Calcutta and Bombay High Courts. The ‘appointed date’ of the merger was April 1, 2004.

IIL has since taken strategic measures by enhancing the HRC steel capacity from 2.4 to 3 million tonnes per annum by installing an additional state-of-the-art electric arc furnace (EAF) and other related facilities. The company has also commissioned a 2.24 million tonnes sinter plant and a 1260 tonnes per day oxygen plant during December 2005, which has led to significant reduction in cost of production due to low sintering cost and captive oxygen production. Demand for steel products, both in international and domestic markets, has shown marked improvement from March 2006.

IIL posted net loss of Rs 1531.4 Millions in Q4 2005-06 and Rs 8126.7 Millions for the 12-month period ended March 31, 2006 as against a net profit of Rs 380.0 Millions and Rs 6960.6 Millions for corresponding period last year.

IIL’s performance during the year was affected due to capital repairs undertaken in the sponge iron plant during May-June 2005 and non-availability of natural gas due to fire at ONGC’s Mumbai High North platform on 27th July, 2005. Production of Hot Metal was also impaired for almost a month during September – October 2005 due to chilling of Blast Furnace. Steep fall in steel prices and increased cost of iron bearing raw materials added to the impact.

DATE: MAY 10, 2006
PLACE: MUMBAI

Issued by Corporate Communications Department

ISPAT ANNOUNCES Q2 RESULTS

Mumbai 25 October, 2005: 

Ispat Industries Limited (IIL) has reported a loss of Rs 710.8 Millions before charging interest, depreciation and tax (EBIDTA) for the July-September 2005 quarter as compared to a profit of Rs 4124.8 Millions for the similar period last fiscal.

Heavy pressure on raw material prices; a devastating flood from the torrential Mumbai monsoon, especially in the Raigad district, where IIL’s integrated steel complex is located and the accident at GAIL’s Bombay High resulting in the stoppage of gas supply at Ispat’s Dolvi plant severely affected the company’s July-September 2005 performances.

Despite such trying conditions, IIL managed to increase its sales by Rs 360 Millions to Rs 11980 Millions during the period under review.

To improve its cost of production, IIL is in the process of commissioning a 2.2 million tonne sinter plant and the secondary electric arc furnace at its integrated steel complex at Dolvi. A 1266 TPDA oxygen plant will also be functional soon.

IIL posted a net loss of Rs 2340 Millions through its Q2 results.

The scheme of reconstruction and amalgamation of Ispat Metallics Limited with IIL is also nearing its completion and will be effective soon.

ISPAT'S Q1 AUDITED RESULTS

August 30, 2005

Ispat Industries Limited’s (IIL) earnings before interest, depreciation and tax (EBIDTA) for April-June, 2005, quarter (Q1) at Rs 2679.9 Millions registered a 29% increase compared to an EBIDTA of Rs 2071.9 Millions recorded in Q1 of 2004-05.

IIL posted a profit after tax (PAT) of Rs 12.0 Millions for the April-June, 2005 quarter (Q1), as against a net loss of Rs 45.62 Millions during Q1 of 2004-05.

IIL registered a gross income from operations of Rs 13111.5 Millions in April-June 2005, compared to an income from operations of Rs 13074.1 Millions during the corresponding quarter of 2004-05.

The Board of Directors of IIL approved the company’s audited financial results for the quarter ended June 30, 2005 at its meeting in Mumbai on August 30, 2005.

IIL carried out revamping and modification of its Directly Reduced Iron (DRI) Plant during Q1 of 2005.

IIL produced 4.98 Millions tonnes of Hot Rolled Coils during April-June 2005 quarter. Production of HRC was higher by 22% compared to same period last year.

To improve its cost of production, IIL is presently implementing its 2.2 million tonnes Sinter Plant and 1260 tonnes per day Oxygen Plant at its integrated steel complex in Dolvi, near Mumbai. IIL’s hot rolled steel making capacity at Dolvi is also being increased from 2.4 million tonnes to 3.0 million tonnes. All the above facilities will be commissioned in the 3^rd quarter of the current financial year.

The Scheme of Reconstruction and Amalgamation of Ispat Metallics India Ltd. with Ispat Industries Ltd. has been approved by the High Courts of Calcutta and Bombay. Requisite actions are being taken by both the companies to make the merger effective.

April 2006

Sehgal, new CEO of Zimbabwe Iron & Steel Co

RAKHI MAZUMDAR

The Economic Times
TIMES NEWS NETWORK[ TUESDAY, APRIL 04, 2006 12:44:29 AM]

KOLKATA: Global Steel Holdings (GSHL), promoter of Ispat Industries, has appointed Lalit Kumar Sehgal as CEO of Zimbabwe Iron and Steel Company (Zisco). GSHL had acquired management control of Zisco last month.

Global Infrastructures, a subsidiary of GSHL, had entered into a deal with the Zimbabwe government for taking over management control of Zisco for 20 years. The company is estimated to have invested $400 million in Zisco.

GSHL has appointed Vilas Jamnis as CEO of its operations in Bulgaria. GSHL’s wholly-owned subsidiary Finmetal holds 71% in the country’s largest steel plant Kremikovski, located 20 kms from the Bulgarian capital city Sofia.

Mr Jamni had earlier held the position of COO of Ispat Industries’ plant in Dolvi, Maharashtra. Subsequently, he had moved to head global operations at GSHL.

Mr Sehgal joined GSHL after retiring from SAIL, where he worked at the public sector company’s Bokaro and Bhilai steel plants. He moves to Zimbabwe after his stint in Nigeria, where he was CEO of Delta Steel Company and prior to that in Ajakouta Steel.

March 2006

CR, galvanised steel price hike on cards

Business Standard
Ishita Ayan Dutt & Our Bureau / Kolkata/ Mumbai March 14, 2006

After an increase in hot-rolled coil (HRC) prices a fortnight back, cold rolled (CR) and galvanised products are set to increase over the next two days by Rs 1,000-2,500 per tonne.

Uttam Galva Steels, the country’s second largest galvanised steel manufacturer, today announced an increase of Rs 1500 a tonne on prices of all its galvanised steel products.

The company has also increased prices across all its other product categories comprising of cold-rolled steel and steel by-products by Rs 2, 500 per tonne.

With the increase, the standard GC 40 grade galvanised steel is quoted at about Rs 38,000 a tonne, ex-Mumbai. Only about a fortnight ago, major galvanised steel producers had announced a price hike. Most of them, including Uttam Galva and JSW, had hiked prices by an about Rs 1,500 to Rs 2,000 a tonne.

Ispat Industries is considering a Rs 1,000 a tonne increase, effective March 16 across CR and galvanised products. Sources said the company could consider another increase of Rs 1,000 per tonne beginning April.

Jindal South West is also planning to increase prices by around Rs 1,000-1,500 a tonne over the next two days.

Seshagiri Rao, chief financial officer, Jindal South West said, the main reason behind the hike was good demand in the international market.

Galvanised product prices had increased by around $100 per tonne in the last 30 days and CR by $80-90 per tonne.

Rao said, Jindal South West’s pricing policy was to review HRC prices at the beginning of every month and CR and galvanising prices in tandem with market conditions.

The main reason behind the price hike was the galloping zinc prices, one of the key input materials. Zinc prices had scaled up to $2,500 a tonne compared with $800 per tonne only 14 months back.

Tata Steel, however, said the company was not considering any price hike.

CR and galvanised steel producers had staggered the price hike over the last few months. Mid-February, producers increased prices by around Rs 1,500 a tonne.The average galvanised prices was at Rs 35,000 per tonne.

The CR and galvanised price increase came after the HRC price rise. At the beginning of March, steel majors—long and flat product manufacturers—raised HRC prices in the range of Rs 500-2,000 a tonne, on the back of a firm-up of demand in the domestic and international markets.

India produces about 4 million tonne and consumes about 1.5 million tonne of galvanised steel. In the recent past, steel mills around the world added new capacities in a big way to meet the anticipated rise in demand in the near future.

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. 46.19
UK Pound	1	Rs. 86.51
Euro	1	Rs. 59.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		39

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 and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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