MIRA INFORM REPORT

Report Date :

03.04.2007

IDENTIFICATION DETAILS

Name :	JINDAL INDIA LIMITED
Registered Office :	2/1 Ahmed Mamuji Street, P S Bally, Howrah-711204, West Bengal
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.01.1952
Com. Reg. No.:	21-092393
CIN No.: [Company Identification No.]	U99999DL1968PTC004852
TAN No.: [Tax Deduction & Collection Account No.]	CALJ00200E
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturers of ERW/HFIW Black and Galvanized Steel Piles and Tubes, Cold Rolled and Galvanized Plain and Corrugated Sheets.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 4500000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	2/1 Ahmed Mamuji Street, P S Bally, Howrah-711204, West Bengal, India
Tel. No.:	91-33-26556298 / 26656399 / 26655490 / 26650702
Fax No.:	91-33-26555186 / 26555186
E-Mail :	jillil@cal2.vsnl.net.in
Website :	http://www.jindalindia.com / http://www.jindalindialtd.com
City Office :	“Octavious Chamber”, Second Floor, 15C, Hemanta Basu Sarani, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22481160 / 22481162 / 22482266
Fax No.:	91-33-22481059
E-Mail :	jil@cal2.vsnl.net.in
Factory 1 :	4 Dharmtolla Road, Belurmath, Howrah, West Bengal, India
Factory 2 :	107/2, Joya Bibl Lane, Ghusury, Howrah, West Bengal, India
Factory 3 :	National Highway No. 6, Village Jangalpur, P. O. Andu, P. S. Sankrail, Howrah, West Bengal, India

DIRECTORS

Name :	Mr. Bhavi Chand Jindal
Designation :	Chairman
Address :	20C, Belvedre Road, Alipore, Kolkata – 700027, West Bengal, India
Date of Birth/Age :	18.07.1926
Date of Appointment :	14.01.1952
Name :	Mr. Punit Jatia
Designation :	Joint Managing Director
Address :	25 Raja Santosh Road, Alipore, Kolkata – 700027, West Bengal, India
Date of Birth/Age :	14.01.1964
Date of Appointment :	01.03.1997
Name :	Mr. Rajendra Prasad Agarwal
Designation :	Whole Time Director
Address :	7/2, Ahmed Hamujz Street, Liluah, Howrah – 711204, West Bengal, India
Date of Birth/Age :	15.05.1951
Date of Appointment :	01.11.1996
Name :	Mr. Purushottam Das Bhoot
Designation :	Director
Address :	26 P K Jagore Street, Kolkata – 700006, West Bengal, India
Date of Birth/Age :	01.03.1929
Date of Appointment :	01.04.1985
Name :	Mr. Jagdish Prasad Mohta
Designation :	Director
Address :	D-128, Antriksh Apartments, Sector 14, Extension, Rohini, Delhi – 110085
Date of Birth/Age :	30.09.1959
Date of Appointment :	25.06.2001

KEY EXECUTIVES

Name :	Mr. Satish Kumar Garg
Designation :	Company Secretary
Address :	15 Saha Lane, Kolkata – 700007, West Bengal, India
Date of Birth/Age :	15.02.1972
Date of Appointment :	01.03.2006
Name :	Mr. Vasdev Aggarwal
Designation :	Company Secretary
Address :	2/1 Ahmed Mamuji Street, Liluah Howrah-711204, West Bengal, India
Date of Birth/Age :	11.05.1977
Date of Appointment :	01.08.2001
Date of Ceasing :	01.03.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
List of Equity Shareholders
Bhavi Chand Jindal	88550	5.96 %
Meena Devi Jindal	90235	6.07 %
Shyam Sunder Jindal	500	0.03 %
Subhadra Jindal	2935	0.20 %
Punit Jatia	18275	1.23 %
Sunita Jatia	74200	4.99 %
Punit Jatia – HUF	23000	1.55 %
Soyuz Trading Company Limited	196413	13.21 %
Rishi Trading Company Limited	125242	8.42 %
Bazaloni Group Limited	111000	7.47 %
Jindal Photo Investments Limited	178300	11.99 %
Consolidated Photo and Finvest Limited	190000	12.78 %
Safe Holding Private Limited	102750	6.91 %
Penrose Mercantile Limited	150000	10.09 %
Flexstar Sales Private Limited	95000	6.39 %
Shyam Sundar Jindal – HUF	400	0.03 %
Ayush Jatia	20000	1.35 %
Utkarsh Jatia	20000	1.35 %
Total	1486800	100.00 %
List of Preferential Shareholders
Consolidated Finvest and Holding Limited	1250000	92.59 %
Gunjan Trust	100000	7.41 %
Total	1350000	100.00 %

BUSINESS DETAILS

Line of Business :	Manufacturers of ERW/HFIW Black and Galvanized Steel Piles and Tubes, Cold Rolled and Galvanized Plain and Corrugated Sheets.
Products :	Ø ERW/HFIW Black and Galvanized Steel Piles and Tubes Ø Cold Rolled and Galvanized Plain Ø Corrugated Sheets
Imports :
Products :	HR Strips/Coils, Zinc, Sockets, Zinc Alloy, C R Coils
Countries :	Europe
Terms :
Purchasing :	On Letter of Credit Basis

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Pipes and Tubes	MT	160000	37262.613
Pipes and Fittings	MT	6912	--
Steel Structurals and Poles	MT	4680	--
C R Strips	MT	350000	131326.738*
* Inclusive of 102316.84 MT transferred for Galvanizing

GENERAL INFORMATION

Customers :	Ø Public Health Engineering Ø Public Health Departments Ø Municipal Bodies Ø Irrigation Sectors
No. of Employees :	About 800
Bankers :	Punjab National Bank, 268/2, G T Road, Liluah, Howrah, West Bengal, India
Facilities :	Cash Credit : Rs. 3899.500 Millions from Punjab National Bank as per revised Hypothecation Agreement dated May 21, 2005. It is secured by way of hypothecation of stock of all sorts of raw materials, pipes and tubes, pipe, fittings, poles, structural, sockets etc., and all sorts of finished and semi finished goods manufactured by the subject company and such other goods / securities as may be accepted by the bank. It is further secured against book debts, R/Rs/Bills of Leading covering consignments of raw materials requited by the company, Block Assets of the subject pertaining to Kolkata Unit of the company given as additional collateral security.

Banking Relations :	Satisfactory
Auditors :
Name :	G. Sanyal and Company Chartered Accountant
Address :	6, Old Post Office Street, Kolkata - 700001
Associates/Subsidiaries :	Ø Bazaloni Group Limited Ø Consolidated Finvest and Holdings Limited Ø Consolidated Photo and Finvest Limited Ø Jindal Photo Limited Ø Jindal Poly Films Limited Ø Jindal Photo Investments Limited Ø Jindal Imaging Limited Ø Soyuz Trading Company Limited Ø Rishi Trading Company Limited Ø M D Jindal Medical Institute and Research Centre

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 100/- each	Rs. 150.000 Millions
1,500,000	Preference Shares	Rs. 100/- each	Rs. 150.000 Millions
	Total		Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,486,800	Equity Shares	Rs. 100/- each	Rs. 148.680 Millions
1,350,000	Preference Shares	Rs. 100/- each	Rs. 135.000 Millions
	Total		Rs. 283.680 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		298.680	288.500	123.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		835.472	944.348	437.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1134.152	1232.848	560.300
LOAN FUNDS
1] Secured Loans		1421.642	632.397	580.300
2] Unsecured Loans		10.909	36.321	623.200
TOTAL BORROWING		1432.551	668.718	1203.500
DEFERRED TAX LIABILITIES		0.000	28.981	0.000
TOTAL		2566.703	1930.547	1763.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1084.980	1036.163	1195.100
Capital work-in-progress		116.340	311.435	0.000
INVESTMENT		17.651	13.314	11.500
DEFERREX TAX ASSETS		5.569	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	989.993	473.696	391.700
	Sundry Debtors	717.674	352.171	202.700
	Cash & Bank Balances	9.687	9.218	16.700
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	237.080	149.098	143.300
Total Current Assets		1954.434	984.183	754.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	610.228	409.064	195.600
	Provisions	2.043	5.484	1.600
Total Current Liabilities		612.271	414.548	197.200
Net Current Assets		1342.163	569.635	557.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2566.703	1930.547	1763.800

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		5260.749	3856.768	3656.200
Other Income		20.517	35.415	138.200
Total Income		5281.266	3892.183	3794.400
Profit/(Loss) Before Tax		[183.260]	3.680	88.900
Provision for Taxation		[33.665]	3.332	31.200
Profit/(Loss) After Tax		[149.595]	0.348	57.700
Earnings in Foreign Currency :
	Export Earnings	1738.720	819.558	NA
	Commission Earnings	0.000	0.000	NA
	Other Earnings	58.257	0.000	NA
Total Earnings		1796.977	819.558	NA
Imports :
	Raw Materials	2470.244	--	NA
	Stores & Spares	14.313	--	NA
	Capital Goods	0.790	--	NA
Total Imports		2485.347	--	NA
Expenditures :
	Raw Materials	4675.200	3235.000	2690.200
	Excise Duty	534.500	361.700	483.400
	Power & Fuel Cost	271.200	205.900	189.200
	Other Manufacturing Expenses	154.300	87.900	116.400
	Employee Cost	41.500	38.800	38.600
	Selling and Administration Expenses	191.900	84.100	20.000
	Miscellaneous Expenses	13.700	11.400	11.100
	Interest & Financial Charges	105.900	43.200	37.400
	Depreciation	244.200	191.000	119.200
Total Expenditure		6232.400	4259.000	3705.500

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.89	1.04	1.75
Long Term Debt-Equity Ratio	0.89	1.04	1.75
Current Ratio	2.63	2.58	4.23
TURNOVER RATIOS
Fixed Assets	3.37	2.82	2.88
Inventory	7.92	9.75	9.09
Debtors	10.83	15.20	21.04
Interest Cover Ratio	[0.41]	1.08	3.38
Operating Profit Margin(%)	3.46	5.64	6.71
Profit Before Interest And Tax Margin(%)	[0.75]	1.11	3.45
Cash Profit Margin(%)	1.63	4.53	4.84
Adjusted Net Profit Margin(%)	[2.58]	0.01	1.58
Return On Capital Employed(%)	[1.96]	2.55	8.93
Return On Net Worth(%)	[14.47]	[0.38]	11.22

LOCAL AGENCY FURTHER INFORMATION

The subject was originally incorporated on January 14, 1952 in the name of “Jindal India Private Limited” and the name of the company had been changed to “Jindal India Limited” on April 1, 1982. The Registered Office of the subject company was shifted from the State of West Bengal to the Union Territory of Delhi on December 18, 1967. Subsequently the Registered Office had been shifted from Delhi to Kolkata, West Bengal on September 7, 2000.

Quality Assessment : ISO 9001:2000 Certified Company

Fixed Assets

Ø Freehold Land

Ø Leasehold Land

Ø Buildings

Ø Plant and Machinery

Ø Electric Equipments and Others

Ø Computers

Ø Furniture and Fittings

Ø Live Stock

Ø Vehicles

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.42.90
UK Pound	1	Rs.84.96
Euro	1	Rs.57.21

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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