MIRA INFORM REPORT

Report Date :

17.08.2007

IDENTIFICATION DETAILS

Name :	BHUSHAN STEEL LIMITED
Formerly Known As :	BHUSHAN STEEL AND STRIPS LIMITED
Registered Office :	F Block 1^st Floor, International Trade Tower, Nehru Place, New Delhi-110019
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	07.01.1983
Com. Reg. No.:	55-14942
CIN No.: [Company Identification No.]	L74899DL1983PLC014942
TAN No.: [Tax Deduction & Collection Account No.]	DELB07323B
PAN No.: [Permanent Account No.]	AAAB1247M
Legal Form :	Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Engaged in the business of manufacturing and marketing of cold rolled steel strips/sheets/coils and galvanised cold rolled steel strips/sheets /coils.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 48000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are reported as fair. General financial position is good. Payments are reported as slow but correct. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	F Block, 1^st Floor, Nehru Place, International Trade Tower, New Delhi – 110 019, India
Tel. No.:	91-11-26462373 (5 Lines) / 42297777
Fax No.:	91-11-26478750
E-Mail :	bssldel@nde.vsnl.net.in
Website :	http://www.bhushansteel.com
Corporate Office :	F-Block, Ist Floor, International trade Tower, Nehru Place, New Delhi, Pin-110019,India
Tel. No.:	Tel:- 91-11-26462373,
Fax No.:	91-11-26478750
E-Mail :	bsslitt@bhushansteel.com
Factory 1 :	23, Site IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad – 201 010, Uttar Pradesh
Tel. No.:	91-120 - 2770601- 08
Fax No.:	91-120-2770509, 2773602
E-Mail :	bsslsbd@bhushansteel.com
Factory 2 :	28/4, Site IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad, Uttar Pradesh – 201 010
Factory 3 :	Village Nifran, Savroli and Dehvali, Taluka – Khalapura, District Raigad (Near Khopoli), Maharashtra
Tel. No.:	91-2192- 274263, 274294, 274296
Fax No.:	91-2192-274292, 274293
E-Mail :	bsslkhapoli@bhushansteel.com
Factory 1 :	Meramandali, District Dhenkanal, Orissa
Branches :	Located at :- Agartala, Agra, Ahmedabad, Aurangabad, Ahmednagar, Bangalore, Bhuvaneshwar, Bhatinda, Chandigarh, Chennai, Guwahati (Assam), Hyderabad, Haldwani, Indore, Jaipur, Jalandhar, Karnal, Kolkata, Kanpur, Ludhiana, Mumbai, Nagpur, Nasik, Patna, Pune, Parwanoo, Rishikesh, Siliguri, Vadodara, Kullu (Himachal Pradesh), Dera Bassi (Punjab), Faridabad, Kanpur, and Varanashi

DIRECTORS

Name :	Mr. Brij Bhushan Singal
Designation :	Chairman
Name :	Mr. Sanjay Singal
Designation :	Vice Chairman & Managing Director
Name :	Mr. Neeraj Singal
Designation :	Managing Director
Name :	Mr. Subir Bisht
Designation :	Nominee (ICICI)
Name :	Mr. Mohan Lal
Designation :	Director
Name :	Mr. A.K. Khushu
Designation :	Whole time Director
Name :	Mr. Ravi Kant Srivastava
Designation :	Additional Director
Name :	Mr. Nittin Johari
Designation :	Whole-time Director
Name :	Mr. Rahul Sen Gupta
Designation :	Whole-time Director
Name :	Mr. M. V. Suryanarayana
Designation :	Nominee (LIC)
Name :	Mr. P.K. Aggarwal
Designation :	Whole time Director
Name :	Mr. Sandeep Bakshi
Designation :	Nominee Director of ICICI bank
Name :	Shri V.K. Mehrotra
Designation :	Director

KEY EXECUTIVES

Name :	Mr. O. P. Davra
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of promoter and promoter Group
Indian
Individuals/HUF	26471992	62.33
Bodies Corporate	787717	1.85
Public shareholding
Institutions
Mutual Funds/UTI	1300	0.00
Financial Institutions/Banks	1300	0.00
Insurance Companies	495242	1.17
Foreign Institutional Investors	1008088	2.37
Non-institutions
Bodies Corporate	10564503	24.87
I) Individuals -Hold Upto 0.100 Million (Nom Value)	949795	2.24
Ii) Individuals -Hold Above 0.100 Million (Nom Value)	2125446	5.00
Any Other (Specify)- A) Clearng Members	12245	0.03
B ) Non-Residents	54034	0.13
Total	42471662	100.00

BUSINESS DETAILS

Line of Business :	Engaged in the business of manufacturing and marketing of cold rolled steel strips/sheets/coils and galvanised cold rolled steel strips/sheets /coils.
Products :	Item Code No. (ITC Code) 721041 Product Description : Corrugated coated with Zinc Cold Rolled Products of Iron or Non Alloy Steel of a width of 600 MM or more Item Code No. (ITC Code) 721049 Product Description : Flat Coated with Zinc Cold Products of Iron or Non Alloy Steel of a width of 600 MM or more Item Code No. (ITC Code) 720918 Product Description : Flat Colled Rolled Products of Iron or Non Alloy Steel of a width of 600 MM or more of a thickness of less than 0.5 MM
Exports :
Countries :	Myanmar, Dubai, Kenya, Ethiopia, Africa, Middle East and Far East Asia
Imports :
Products :	Raw materials, capital goods and spares parts & stores
Countries :	Europe, U.S.A. and Far East
Terms :
Purchasing :	L/C, D/A or D/P terms

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Cold Rolled Steel Strips/Sheets/Coils	MT	9,00,000
Cold Rolled Galvanised Steel Strips/Sheets/Coils	MT	4,65,000
Colour Coated Galvanised Steel Strips/Sheets/Coils	MT	80,000
Precision Tubes	MT	60,000
Hardened & Tempered Cold Rolled Steel Strips	MT	6,000
High Tensile Steel Strapings	MT	20,000
Billets	MT	40,000
Wire Rods	MT	20,000
Formed Sections	MT	3,000
Under the liberalised industrial policy of Government of India, the company products do not require any industrial license.

GENERAL INFORMATION

Customers :	> The Tata Engineering & Locomotive Company Limited > Bajaj Tempo Limited > LML Limited > Whirlpool of India Limited > Mahindra & Mahindra Limited > Hyundai Motors India Limited > Hindustan Motors Limited > JBM Tools > Escorts Limited > Scooter India Limited > LG Electronics India Limited > BPL Limited > Voltas Limited > Fedder Lloyds > Godrej GE Appliances Limited > Ashok Leyland Limited > Rail Coach Factory
No. of Employees :	2750
Bankers :	> Punjab National Bank > Canara Bank > State Bank of India > Allahabad Bank > Federal Bank Limited > Bank of India > Bank of Baroda > ING Bank NV Financial Institutions > ICICI Bank > IFCI Bank > IDBI Bank > LIC > GIC & Subsidiaries > Exim Bank > SICOM > AKA Ausfaushrkredit – GmbH, Germany > West LB, Germany > Unit Trust of India > UTI Bank Limited

Banking Relations :	Satisfactory
Auditors :
Name :	Mehra Goel & Company Chartered Accountants
Memberships :	Confederation of Indian Industry
Associates :	> Bhushan Industries Limited > Bhushan Metallics Limited > Decor Steel Limited > Trail Track India Limited > Flawless Holdings & Industries Limited > Evergrowing Iron & Finvest Limited > Guinda Mal Chiranji Lal Limited > Kalinga Pipes Limited
Subsidiaries :	> Bhushan Capital & Credit Services Limited > Jawahar Credit & Holdings Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
95,000,000	Equity Shares	Rs. 10/- each	Rs. 950.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
42,470,000	Equity Shares	Rs. 10/- each	Rs. 424.700 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital	424.700	412.717	404.717
2] Reserves & Surplus	11720.300	8483.955	6901.188
NETWORTH	12145.000	8896.672	7305.905
Advance for share warrant Money received	0.000	36.000	0.000
LOAN FUNDS
1] Secured Loans	24128.400	16509.122	10897.908
2] Unsecured Loans	8291.400	3852.659	2276.807
TOTAL BORROWING	32419.800	20361.781	13174.715
DEFERRED TAX LIABILITIES	0.000	663.124	748.752
GRAND TOTAL	44564.800	29957.577	21229.372
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	17234.600	10200.759	10470.061
Capital work-in-progress	18921.100	12952.249	3857.020
INVESTMENTS	208.500	191.657	189.901
CURRENT ASSETS, LOANS & ADVANCES
Inventories	7563.400	4747.846	5816.725
Sundry Debtors	5389.000	4044.772	3394.353
Cash & Bank Balances	1001.400	815.164	173.894
Loans & Advances	3685.000	2411.420	1297.633
Total Current Assets	17638.800	12019.202	10682.605
Less :
Current Liabilities	9260.300	5265.874	3889.116
Provisions	177.900	140.416	81.099
	9438.200	5406.290	3970.215
Net Current Assets	8200.600	6612.912	6712.390
MISCELLANEOUS EXPENSES	0.000	0.000	0.000
GRAND TOTAL	44564.800	29957.577	21229.372

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		41792.6 00	29925.900	28292.200
Other Income		618.000	927.400	455.000
Stock Adjustments		951.700	[755.700]	1645.600
Total Income		43362.300	30097.600	30392.800
Profit/(Loss) Before Tax		3723.600	1596.600	1656.500
Provision for Taxation		591.000	52.100	123.000
Profit/(Loss) After Tax		3132.600	1544.500	1533.500
Imports :
	Raw Materials	NA	11948.236	NA
	Stores & Spares	NA	73.988	NA
	Capital Goods	NA	1001.036	NA
Total Imports		NA	13023.260	NA
Expenditures :
	Raw Materials	29379.200	20681.000	22089.200
	Excise Duty	3724.500	2763.900	1929.100
	Power & Fuel Cost	1477.000	1266.000	1083.100
	Other Manufacturing Expenses	736.400	481.400	434.800
	Employee Cost	498.600	359.600	233.300
	Selling and Administration Expenses	1397.400	838.300	660.200
	Miscellaneous Expenses	12.800	109.700	23.900
	Interest & Financial Charges	858.200	753.800	793.900
	Depreciation	2089.200	1657.600	1647.200
Total Expenditure		40173.300	28911.300	28894.700

QUARTERLY RESULTS

PARTICULARS	30.06.2007
Type	1st Qtr
Sales Turnover	9380.300
Other Income	292.200
Total Income	9672.500
Total Expenditure	7837.100
Operating Profit	1835.400
Interest	144.800
Gross Profit	1690.600
Depreciation	451.800
Tax	142.900
Reported PAT	981.400

Notes

200706 Quarter 1 –

Gross Sales Includes Domestic Sales Rs 7499.00 million Exports Sales Rs 2928.40 million Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (785.90)million Consumption of Raw Materials Rs 7585.40 million Staff Cost Rs 110.20 million Other Expenditure Rs 927.40 million Tax Includes Provision for Current Tax Rs 142.90 million Deferred Tax Rs 114.50 million EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 74 Complaints disposed off during the quarter 74 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record by the Board of Directors on July 27, 2007. 2. Pursuant to the adoption of Accounting Standards as prescribed by Companies (Accounting Standards) Rules 2006 issued by Ministry of Corporate Affairs vide notification no G.S.R 739 (E) dated December 07, 2006 as required by Accounting Standard - 11 on The Effect of Changes in Foreign Exchange Rates The Company has recognized net gain arising on account of foreign exchange difference amounting to Rs 18.50 million in the Profit and loss Account relating to acquisition of fixed assets. Consequently, profit before tax is higher to that extent. 3. The effect of AS 15 (revised) issued by Institute of Chartered Accountants of India on employees benefits effective from April 01, 2007 will be considered at the year end. 4. The Plant at Orissa have been considered under Trial run. Accordingly Trial Run (Gain)/Loss including borrowing cost have been capitalised. 5. The Company is engaged in the steel business, which in the context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment. 6. The limited review for the quarter ended on June 30, 2007, as required under clause 41 of the listing agreement with the Stock Exchanges has been carried out by the Statutory Auditors. 7. Previous year figures have been regrouped / rearranged wherever considered necessary.

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	2.51	2.07	1.70
Long Term Debt-Equity Ratio	2.18	1.46	1.08
Current Ratio	1.32	1.10	1.12
TURNOVER RATIOS
Fixed Assets	1.86	1.73	1.89
Inventory	6.79	5.67	5.80
Debtors	8.86	8.05	8.20
Interest Cover Ratio	5.34	3.12	3.09
Operating Profit Margin (%)	15.96	13.39	14.48
Profit Before Interest & Tax Margin (%)	10.96	7.85	8.66
Cash Profit Margin (%)	12.49	10.70	11.24
Adjusted Net Profit Margin (%)	7.50	5.16	5.42
Return on Capital Employed (%)	12.41	9.45	13.74
Return on Net Worth (%)	29.78	19.06	1.89

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.630.75/-
Low	Rs.620.05/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Bhushan Steel & Strips Limited, an ISO 9002,QS 9000 certified and the flagship company of Bhushan group, is India's largest (in the secondary sector) and the only CR Steel Plant with a line to manufacture Cold Rolled Coils & Sheets up to a width of 1700mm, as well as Galvanised Steel Coils & Sheets up to width of 1350mm.  

The Company currently has a capacity to produce 0.6 Million MT/Annum of Cold Rolled Steel at Sahibabad Works and 0.4 Million MT/Annum of Cold Rolled Steel at Khopoli Works & out of that 0.25 Million MT/Annum of Galvanized Steel. 

The plants of the company are at Sahibabad, Uttar Pradesh and Khopali, Maharashtra. The company entered into an agreement with Preussang Handel, Germany, a leading metal trading house, to buy a major part of BSS production. 

The company's has strong presence in U.S.A., CHINA, ETHIOPIA, U.A.E., MYANMAR, SENEGAL, IRAN, AUSTRALIA, NEWZELAND, SAUDIA AND AFRICAN COUNTRIES. 

Bhushan Steel & Strips Limited was incorporated on 7th January 1983, under the name of Jawahar Metal Industries Private Limited for the manufacture of cold rolled steel strips and steel ingots at Sahibabad Industrial Area, District Ghaziabad. The company was taken over by Brij Bhushan Singhal and his sons Sanjay Singhal and Neeraj Singhal by acquiring the entire share capital of the company. The company was renamed as Bhushan Steel and Strips (BSS) after diversifying into wide-width cold-rolled (CR) steel strips in 1992 and the cold rolling plant was also completed in the same year. 

BSS came out with its first public issue in 1993 to finance its forward integration project for the manufacture of 1,00,000 tpa of continuous annealed/galvanised steel strips. It tapped the capital market for the second time in Apr.'95, to part-finance the setting up of facilities to manfacture an additional 1,50,000 tpa of CRCA and 40,000 tpa of GP/GC sheets. 

The company commissioned galvanising plant in January 1994 with a capacity to manufacture 120000 tonnes per annum of wide wideth cold rolled steel strips and 100000 tonnes per annum of galvanised sheets. In the same year 1994, the company also proposed to set up an integrated steel plant for manufacture of 1.2 Million Tonnes per year of H R Coils at Daitari in the State of Orissa. The company also engaged Metallurgical & Engineering Consultants Limited as engineering consultants for setting up of the integrated plant. 

In 1995, the company came out with a rights issue of 82,50,000 Unsecured Zero Interest Convertible Debentures and also made a public issue of 68,94,800 - 14% Unsecured Fully Convertible Debentures. 

In 1998, the company proposed to setup two steel cold rolling and galvanising units - one near Haldia and the other at Patalganga, near Mumbai. The company also commissioned a cold rolled steel plant at Ghaziabad, in collaboration with Sumitomo of Japan, to cater to the needs of the automotive sector 

During 1999, the company, also set up a dedicated service centre for large OEM customers at Sahibabad. 

The company approved amalgamation of Bhushan Limited with the company in 2000. But later the proposal for amalgamation was withdrawn in 2003-2004. 

During 2000-01, the company implemented the expansion project of 2,50,000 tpa of Cold Rolling Cum Galvanising & Tube Complex in Khopoli, Maharashtra at cost of Rs. 4860 Million. During 2004-05, the status of the project is that this has been fully commissioned and the company has also commissioned the Cold Rolled (Narrow) and Pipe plant at Sahibabad. In 2003, the company Entered into a strategic alliance with Sumitomo Metal Industries of Japan under which, the latter has further extended process know-how for the manufacture of automotive steel sheets for a period of six years 

During 2004-05, The company planned to commence additional manufacturing facilities at its plant situated at Khopoli (Maharashtra) in respect of the production of prepainted galvanized material(PPGI).The capacity of the line would be approximately 120000 MT per annum making it the largest line in India. During 2004-05, the company is in the process of implementing an integrated steel project in the State of Orissa and the part of the project includes capacities for production of Sponge Iron and Billets is envisaged to start from April, 2006. 

During 2005-2006, the company successfully commissioned the largest Color Coated line at its Khapoli plant in Maharashtra. The company also commissioned the Galume line, an aluminium and zinc coated patented product of the company for the first time in the country at its Khapoli plant. The company is also moving into process/value chain of steel products through back integration to set up a unit for manufacture of HR Coil, Billets and Power Plant. 

The companies new HR plant is at fast phase of progress and the company expects the plant to commission as per schedule. The total project comprises installation of Hot Rolled Coil and Billets along with power plant. In the first quarter of 2006-07 the company shall start 2 Klins and 33 MW power plant while in the third quarter the company shall start 2 klins and 77 MW power plant which will complete phase I of the project. The company has already spent Rs.13210 Millions on the phase I of the project and has place substantial orders for the equipments mainly with SMS Demag, Siemens, Danieli Corus, Techint, KCI Cranes, Paul Wurth, etc to be imported for phase II. 

The Company has raised Rs 105 million through issue of Equity shares on Preferential basis for Company's integrated Steel & Power Plant being set up in the State of Orissa. The same has been utilized in full for the purpose of implementation of project. 

HIGHLIGHTS 

During the year under review the company has successfully commissioned the part facilities at the Orissa Project. The company has commissioned three sponge iron kiln, three induction furnances and 33 MW power plant at its integrated steel plant at Orissa. Balance one sponge iron kiln and 77MW power plant shall be commissioned in the first quarter of 2007-08, with this, Phase I of the Orissa project shall be completed. 

Now, the company has become a Billion Dollar company. The total income of the Company increased to Rs. 42020 Millions, registering the growth of 37% over previous years level of Rs.30700 Millions.  

During the financial year 2006-07 the company achieved exports of Rs.15270 Millions as against previous year exports of Rs. 10060 Millions thus showing a remarkable growth of 52%. 

EXPANSION PROJECT 

The company's Project of integrated steel plant at Orissa started in January, 2005 and they proudly announce the start of three sponge iron kiln and 33 MW power plant at Orissa. The Orissa project is running as per schedule and we expect to complete the full project by March, 2009. 

The rehabilitation colony is completed and the displaced families have been shifted to houses. The water pipe line from the Brahmni river is completed and work on the housing colony is also on full swing. To complete the Phase II on schedule, the company has given the civil contract of Phase II to Larsen and Toubro Limited. 

The company has already spent Rs.28600 Millions on the Phase I & Phase II of the project and has placed the substantial orders for HR Mill, Slab Caster and Conarc furnaces for the supply of equipments with SMS Demag, Blast furnace from Danieli Corus - Netherlands, Sinter plant and Coke Oven from China Shougang China, Electrical automation of HR plant from Siemens, Germany. 

FINANCE 

During the year the company has raised ECB for USD 50 Million dollars syndicated by HSBC bank for its Project of integrated steel plant at Orissa. 

The Company has raised a Rupee term loan of Rs.10300 Millions from SBI syndicated loan out of sanctioned Rupee Term Loan of Rs.21000 Millions for the integrated steel plant at Orissa. 

The company has received the approval of approx. Euro 14 Million from SACE, Italy for import of capital equipments from Techint, Italy. The approval of approx Euro 10 Million has also been received from Finnvera, Finland for import of capital goods from KCI, Finland.  

The Working Capital Facilities for the Sahibabad, Khapoli and Orissa plants have been appraised by PNB, the lead Bank, for Rs.17730 Millions (Fund based Rs.5300 Millions excluding export credit and non fund based limit of Rs.12430 Millions). 

The company continues to enjoy the long term rating of A + ( ind single A plus ) by Fitch Rating India Private Limited  

The Fitch Rating India Private Limited (FITCH) has re-assigned the short term rating of F1+ for Rs.1000 Millions commercial paper programme of the company. 

Credit Analysis and Research Limited (CARE) has assigned short term rating PR1+ for Rs.500 Millions. 

EXPORTS 

Efforts of the company on the Export front, to respond to the National priority, continue to be increasingly rewarding with the achievement of Export Turn over of Rs.15270 Millions, up by 52% over the previous year's exports of Rs.10060 Millions. 

With a firm commitment and through sustained efforts, the Company continues to maintain good rapport with Global Customers. Their quality products and timely delivery have found wide acceptance in the highly competitive international market. 

Their products are being exported across the Globe. During the year the Company has successfully penetrated into South African, Latin American, Romanian, Russian and Ukranian Markets in addition to their traditional strong hold of Ethiopian & Middle East markets. 

During the Financial Year 2006- 07, the company has sold 0.369 Millions MT steel out of which 95000 MT is it's newly introduced product Galume and Pre-painted Galume to European and Latin American Markets which is very well accepted there. Due to which there is an increase of 50% in export Turnover. In financial year 2007-08 they are targeting export turn over of over US$ 490 million (approx Rs.20000 Millions). 

QUALITY 

In today's global competition and open economy, quality plays a vital role in marketing the products and stay ahead of others. Therefore, great emphasis is given to manufacturing products that meet high standards of quality in the global market and customer satisfaction. 

Proactive efforts are directed towards determining customers' requirements and achieving all-round customer satisfaction. This is primarily achieved through automated systems (reducing manual handling to a minimum), high attention to complaint resolution, online communication and information exchange, quality circles etc. 

CHANGE OF NAME 

The name of the Company has been changed from Bhushan Steel & Strips Limited to Bhushan Steel Limited w.e.f. April 12, 2007. 

Future plan of action : 

The efforts are continued to achieve 100% indigenisation of the Auto Industry. 

Efforts are being made to roll 1725 mm wide sheets for Automobile Industry. Material to be tried for optimising different Annealing Cycle for getting optimum properties. 

To reduce process cost and reduce failures and improve performance of the existing and newly developed products. 

TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION 

(1) Efforts in brief made towards technology absorption, Adaptation and innovation. : 

COMPANY'S PLANT AT SAHIBABAD, DISTT. GHAZIABAD, U.P. 

(a) The Project for installation of latest 6 HI UCM Cold Rolling Mill from Hitachi, Japan with allied facilities like electrolytic cleaning line, 100% Hydrogen furnace, 4 HI Skin Pass Mill from Clecim-France with electrostation Oiler from Ravrini-Italy, Sophisticated Roll Grinding Machine and Electro Discharge Texturing machine from Waldrich Siegen Germany, Fully automatic CR Slitting Lines from FIMI-Italy, CTL and multi blanking line with Electro Magnetic Stacker from Henrich George Germany and full fledged laboratory and R&D Centre to meet the stringent requirements of car body manufacturers is already in operation. 

Additional Roll Grinding facility with on line crack detection from Waldrich Siegen-Germany, has been implemented. 

(b) Integrated power generation has been planned with Two DG Set of 12 MW each from MAN B&W, Germany already in full operation. 

(c) Technical Assistance Contract with Sumitomo Metal Industries Japan for development, sample test and evaluation and simulation of various grades required by the Indian Industry has been renewed for further period of six years. 

(d) ISO/TS-16949, ISO-14001, OHSAS-18001 Certifications have been awarded by DET NORSKE VERITAS. 

(e) Installation of Kathabar coil cooling system imported from LOI 

Thermo process Germany has resulted in increased productivity and also eliminating rejection due to pin rust. Five Nos. H2 basis added from Ebner, Austria. 

(f) Narrow CRCA facility added. 

COMPANY'S PLANT AT KHOPOLI, MAHARASHTRA. 

A state of art facility has been installed at Khopoli, Maharashtra incorporating the following features :-  

(1) 2 Nos. Narrow Cold Rolling Mills with capability to roll high carbon steel have been installed. 

(2) 8 Nos. annealing bases from Ebner have been installed.

(3) An ultra modern facility for hardened and tempered steel have been installed with :- 

(a) Very sophisticated Lead quench type hardening and tempering furnace from Ebner. To add on more capcity for H&T products company has started one more H&T line (already started).  

(b) Grinding and polishing facilities from Bruer Germany. 

(c) Terminal equipment from Deuyhun Tech Korea. 

(d) Edge profiling from Julius Germany. 

(4) An High Tensile strapping steel complex has been set up with equipments from ANSI Robicon, USA and Denyhun Tech, Korea to produce both Apex and Magnus grade of steel strapping products. 

(5) An Ultra Modern Tube Complex for production of Boiler tubes, Precision Tubes, Drawn Tubes and various square and rectangular tubular sections have been installed with equipments as follows: 

(a) Three Nos. precision Tube Mills. 

(b) State of Art multiple tube draw benches. 

(c) Roller Hearth furnace for Bright Annealing of Tubes from LOI Germany. 

(d) One more Roller Hearth furnace for bright Annealing of tubes, being commissioned. 

(e) State of Art surface treatment facility from Grauer and Weil. 

(f) Tube cutting and finishing machines from Soco Taiwan. 

(g) An Ultra Modern tool room to complement the facility. 

(6) 24 MW Captive Power Plant has been installed for captive power generation with all equipments imported from MAN B&W and Siemens, Germany. 

(7) A wider Cold Rolling Complex with the latest generation equipment for producing galvanised sheets with additional facilities for Galvaneal / Galvalume and colour coated sheets is being implemented. 

(8) Roll Grinding facility from Waldrich Siegen, Germany has been installed to produce high quality grinding in rolls with on line crack detection system. 

(9) For the first time in India production of AL-ZN coating on Steel has been successfully produced and exported. The product is being branded as Galume. 

(10) An ultra Modern 100% H2 based wider CRCA facility is already added with the following equipments : 

(a) Skin Pass Mill. 

(b) H2 Annealing consisting of 6 basis and Hydrogen Plant. 

(c) EOT Machine. 

(d) CTL Line. 

(e) Tile Profile Machine for roofing material. 

COMPANY'S PLANT AT MERAMANDALI, DISTT. DHENKANAL, ORISSA 

(a) Company's Plant at Orissa is a backward seamless integration to manufacture HR Coil, Billets and Power Plant. 

(b) Process route for the same will be DRI-BF-EAF route and will be BF, CONARC, Slab Caster, Billet Caster and Hot Strip Mill along with captive power plant. All machines and technology used in this project is being purchased from world known suppliers like SMS Demag, Techint-Italy, Lurgi, Danieli, Concast, Siemens Germany etc. 

(c) In this project, facilities completed DRI KILN I, II & III Power Plant 33 MV, 77 MV, 220KV switch yard, 3 nos. Induction Furnaces / Electric Protection, 2 stand Billet Caster Stacker Reclaimer, Iron ore crushing and screening complex, Truck Tippler, Cooling Tower Utility / Water Pipe Line/ Weighing systems, Raw Material Handling System. 

(2) Benefit derived as a result of the above efforts e.g. Product improvement, cost reduction, product development Import substitution etc. : 

COMPANY'S PLANT AT SAHIBABAD, DISTT. GHAZIABAD, U.P. 

(a) All the automobile grades have been well established and being supplied to almost all the major car manufacturers. This has resulted 95% indigenisation of the vehicles resulting in import substitution and substantial cost saving for the car manufacturers. 

(b) Due to Integrated power generation facilities, continuous uninterrupted supplies of material to the customer to meet their tight schedule and production targets. 

COMPANY'S PLANT AT KHOPOLI, MAHARASHTRA. 

The Company has targeted further value addition by implementation of :- 

(1) Precision Tubes for automobiles and other OEMs. 

(2) Hardening and Tempering. 

(3) High Tensile Steel Strapping. 

(4) Colour Coated Sheet. 

(5) Galume (Zinc & Aluminum Coated Sheet

INDUSTRY STRUCTURE & DEVELOPMENTS  

The steel industry is dividend into primary and secondary sectors. The primary sector produces billets, plates, rounds and Hot Rolled Coils/Plates. These form raw materials for the secondary sector, which produces value added items such as angles, channels, wire rod, cold rolled coils/sheets and galvanised Coils/Sheets. CR Sheet is a thinner sheet used for consumer durables (refrigerators, washing machines etc.), Automobiles, bicycles etc. CR sheets are used by the automobile and domestic appliances industry whereas CR strips are used in manufacturing of bicycles, drums, barrel, fabrication, furniture etc. CR coils are mainly used for manufacturing GP/GC sheets. Bhushan Steel Limited which so far falls under Secondary Sector, also entered in Primary Sector with the setting up plant at Orissa. 

All steel products are made from semi-finished steel that comes in the form of slabs, billets and blooms. Steel products can be broadly classified into two basic types according to their shape. 

Flat Products 

Derived from slabs, this category includes plates and Hot Rolled (HR) steel such as coils/sheets. While plates are used for applications such as shipbuilding, etc., HR steel is the most widely used variety of steel, and other downstream flat products such as Cold Rolled (CR) steel and Galvanized steel are made from it. 

Long Products 

These products derive their name from their shape. They are made by using billets and blooms and include rods, bars, pipes, ropes and wires, which are used largely by the housing/construction sector. 

THE GLOBAL STEEL INDUSTRY 

World crude steel production stood at 1.23 billion tons in 2006; an increase of 9.7% over 2005 production of 1.12 billion tons, and surpassing the historic 1 billion mark for the third consecutive year. Over the past ten years the most remarkable growth has been in China and in the Asia region. Asia (Ex-Japan) accounted for 53% of the World steel production in 2006. International Iron & Steel Institute expects steel demand to grow at 7.3% in CY07 and then continue to grow by 5.8% in CY 08.  

The World steel industry has undergone some dramatic changes over the recent past. After experiencing a sharp downturn in demand starting in 1998 and resulting in historically low prices in the 3rd quarter of 2001, the 'Hot Rolled Band' spot export prices indicative of the level of world steel prices - peaked at US$625 per ton in late fall 2004 compared with an all-time low of US$175 per ton in late 2001. Thereafter it has come down and has been ruling around a level of US$ 535. Domestic prices of flat steel are around INR 25,000 - 27,000 per tonne and are expected to be in the range of INR 28,000-30,000 during 2007-08. Domestic prices have shown strong correlation with the international flat steel prices. 

INDIAN STEEL INDUSTRY 

India derives its competitive advantage in steel making from the availability of abundant quality reserves of iron ore with estimated reserves of 17.33 billion MT, a fast growing domestic market driven by infrastructure, construction, automotive and consumer goods sectors as well as a highly skilled and low cost workforce. Coal is also available but reserves, while abundant, have high ash content tempering the iron ore advantage somewhat. 

Indian steel industry is at an inflexion point and promises to become a key player on the World stage, both as a producer and a consumer. Usually, for emerging economies like India, demand for steel consumption grows at about 1.3 times of GDP growth rate. This means, that if the economy is to grow by an average of 9% p.a., demand for steel would grow at over 11% p.a. The Government has approved the National Steel Policy (NSP) 2005 whose long-term goal is to ensure that India has a modern and efficient steel industry, capable of standing up to international competition and catering to the growing domestic demand for steel. This in turn has led to sustained growth in the steel sector. 

Orissa Advantage 

Dominating investments in steel and iron-ore mining is in the state of Orissa. The state is endowed with large reserves of iron ore (estimated 4.18 billion MT) and convenient access to the sea through the port of Paradeep. Orissa has signed around 45 memorandums of understanding (MoUs) for setting up steel capacities aggregating 60 million tonnes within the next few years. 

Recovery Of Domestic Sector 

India's steel industry has seen a recovery over the last three years on the back of an upturn in the global and domestic steel cycle. Higher prices helped to improve realizations while restructuring of their original high-cost debt reduced interest costs. Most of the big steel producers are currently tapping export markets helped in a large measure by process improvements and quality upgrades. All things considered, the sector is now on a much firmer footing than it has ever been. 

Capacity Expansion 

Realizing the advantages stated above, a large number of steel makers have started modernizing and/or expanding their plants while others have announced new capital spending in Greenfield projects. In the long product segment, along with aggressive plans announced by integrated players like RINL, a number of small and medium-sized companies are setting up new capacities. Capacities to the tune of 7-8 Million Tonnes are expected to come up by FY09-10, including additional steel making capacity of around 2.5-3 Million Tonnes by the end of 2006-07. 

With respect to flats, an additional steel making capacity of 5.5-7 Million Tonnes may come on stream over the next 4-5 years subject to favourable market conditions and availability of finance. This projected growth does not take into account big Greenfield projects announced for implementation in Orissa most of which are unlikely to come on stream before 2010. Bhushan Steel expects to have a first mover advantage in this regard, as its plant is scheduled for completion by FY 09 itself. 

Iron Ore

India has large recoverable reserves of iron ore - estimated by the Indian Bureau of Mines at about 17.33 billion tons and enough for over 125 years at current rates of consumption - available at a cost that is among the lowest in the World. The total recoverable reserves comprise almost 14 billion tons of hematite-50% of which is medium-to-high-grade with iron content over 62% - and 3.33 billion tons of magnetite respectively. The hematite reserves are located largely in Eastern/Central India - Jharkhand, Orissa and Chhattisgarh. 

KEY SUCCESS FACTORS 

Ensuring access to raw materials at low costs 

The steel industry in India is a fragmented one, resulting in players having very little say in end prices. Hence the key to success is keeping costs as low as possible. The cost in a steel company is determined by factors such as technology, manufacturing route, operational integration and operating efficiency as measured by operating parameters. 

Extent of forward integration 

The extent of forward integration is also critical in deciding the competitiveness of steel companies. The realizations of value-added products are higher and more stable than base grades. The cost of adding value is generally lower than that of base grades, resulting in better margins for integrated players.  

Economies of scale 

With pressured operating profitability, players with economies of scale are likely to benefit by lower cost burdens from lowered fixed cost per tonne. 

The following paragraphs provide a brief review of some of the key drivers for increased steel demand as well as the main steel applications in the construction, pipe and tube, automotive and consumer durables sectors. 

Automobiles 

The sector is benefiting from rising income levels and cheaper consumer finance. Moreover, it would benefit from more spending on road development projects. Hot rolled flats are used in automobiles, as chassis, bumpers and clutch covers. In general, steel constitutes 60% of the weight of a car body. Cold rolled coils and sheets are used to manufacture auto bodies (for commercial vehicles, cars, tractors, two and three wheelers), and auto components (such as clutch assembly, bearings and horns). Coated sheets are also used in the manufacturing of auto bodies. 

Over the next five years, sales (domestic as well as exports) of passenger vehicles, main user segment of auto market for flats - are expected to grow at a compound rate of 14% to just under 2.5 million vehicles while the commercial vehicle market is projected to grow at a lower 4-5% rate to just under 0.7 million. The two-wheeler market is expected to have unit sales of around 10 million by 2010. As a result, this sector alone is expected to generate substantial demand for flat steel products over the next 5 years. 

Consumer Durables 

Consumption of consumer durables has increased due to higher consumer spending, following the liberalization of the economy in 1991 and the arrival of many foreign players in the domestic market. Prices of most consumer durables have become competitive due to more competition among players. Competitive pricing, easy availability of consumer finance and increased demand from the rural sector have resulted in a significant increase in the penetration level of white goods and other consumer durables. This has also led to robust demand conditions, with five-year demand projections for various segments of the consumer durables marketplace ranging between 5%-20%. As this consumer durables sector is a major end-use sector for cold rolled flats-with white goods (the outer panel of most white goods is made of cold rolled or galvanized sheets) and furniture accounting for around 11% of total consumption, demand in the flat steel segment is also likely to be driven by the underlying growth in this sector. 

Construction 

Long products are used extensively in the construction sector, which consumes over 10 million tons of steel annually, and is projected to grow at around 20% for the next five-year period. This sector is benefiting from rising incomes and increased availability of housing finance. There is also a surge in infrastructure and housing due to population growth and urbanization - and retail development, such as shopping malls and multiplexes. 

Flat products are also used in the construction sector. Hot rolled steel coils and sheets are used in structural materials and welded pipes. Cold rolled sheets and coils are used in press formed components, which in turn are used in construction, for making tanks and containers. Galvanized sheets are largely used in roofing, slide cladding, making water tanks and as fencing material. 

However, as compared with international norms, the construction industry in India is not steel-intensive. The steel to cement consumption ratio is 1.1 in developed countries, as compared with 0.31 in India. There is substantial potential for an increase in the consumption of steel in the construction industry, due to the low steel consumption ratio and benefits of steel (long products), such as superior quality and durability. Further impetus has been provided by the Government due to its thrust on building road networks. 

Pipes and Tubes 

Flat steel demand is likely to get a significant pull from the piping sector due to an increased emphasis on gas, irrigation and water supply projects. Currently, the country has around 6,300 km of pipeline in place. It is estimated that the pipeline network will more than double in the next 5-7 years, and around 4,000 - 7,000 km of pipeline network will be completed by 2010.  

The India Advantage 

The robust performance of the Indian economy continued during the second quarter (July-September) of 2006-07. According to the Central Statistical Organisation (CSO), real gross domestic product (GDP) growth accelerated to 9.2 per cent in the second quarter from 8.9 per cent in the preceding quarter and 8.4 per cent an year ago. Strong growth in industrial activity and services sector contributed to higher overall growth in 2006-07. With both the first and second quarters of 2006-07 recording higher growth over the corresponding quarters of 2005-06, real GDP growth accelerated to 9.1 percent in the first half of 2006-07 from 8.5 per cent an year ago.  

In line with the Five-Year Plan's goals, as mentioned in the World Bank Group Country Assistance Strategy, the Government has reiterated its commitment, as the highest priority, to the development and expansion of infrastructure. The Government has also committed itself to a massive expansion of social housing in towns and cities, in particular, to meet the needs of slum dwellers. Between 2001-02 and 2011-12, spanning the 10th and 11th five-year plan periods, the Government's forecast outlays on infrastructure (power, roads and bridges, railways, ports, telecommunications, airports, water and gas supply and urban development) are expected to be around US$300 billion. In addition, affordable housing and consumer finance is readily available from local financial institutions and this is expected to increase the demand for housing. Disbursements for housing finance from banking and housing finance institutions are in the region of about US$1 billion annually and growing at a CAGR of 30%. These enormous housing/construction and infrastructure investments suggest that the demand for steel products in the domestic market is expected to grow further. 

PERFORMANCE 

The Company is engaged in the Steel business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment. The overall operational performance of the Company has been much satisfactory during the year.

EARNING OUTLOOK 

The Company is primarily a converter of HR coil to value added products where the final application is in auto and whitegoods industry. The company is now enhancing its business profile from a converter to an integrated steel producer by setting up an integrated steel plant in Orissa. The plant, once fully commissioned, will produce 1.9mtpa of auto grade HR coil, which will be internally consumed for further value added products at its existing facilities. This will further strengthen the bottom line of the Company. 

RISKS AND CONCERNS 

* Availability of Raw Material (HRC) 

The availability and the cost of the raw material (HRC) is a key concern and the company at present is exposed to the vulnerability of the market. As the turnover of the company is growing year to year the availability of raw materials may become a constraint. Thus it may be difficult for the company to access raw materials ( HRC ) regularly as well as the cost of raw material is also a key concern. In such a scenario, the integrated producers with HRC manufacturing facility would be the clear gainers. 

This risk however will be reduced with upcoming HRC plant at Orissa. The company has already started production of part facilities at Orissa. Phase I of the Orissa project which comprises of Billets and Sponge Iron have already been started and Phase II which comprises of HR mill will start in FY09. 

* Orissa Project Execution 

Orissa Project will be the company's first HRC project thereby exposing it to implementation and execution risks. The project is critical as it will assure easy availability of key raw material and lower input costs.  

These risks are however mitigated with the appointment of well established consultants and suppliers for providing technical assistance and equipments for the project. The company has a past record in completing the projects on time. The phase-I of the project which comprises of production of Billets and Sponge Iron have already started and the phase II is also running as per schedule. 

Fixed Asset :

Tangible Assets

• Freehold Land
• Leasehold land\building
• Plant & Machinery
• Assets not Owned by company
• Furniture and Fixtures
• Vehicles

Intangible Assets

• Computer Software

The company is in trade terms with :-

v Acon Measurement (Private) Limtied

v Adcon Instrumetn (Private) Limited

v Air Trax Polymers (Private) Limited

v Alliance Engineering Company

v Bamrah Engineers

v D B Engineeirng Company

v Electroplast

v Friends Cable Industries

v Friend Fibre Glass Engineering

v Hindustan Friction

v Hindustan Rubber Industries

v Indus Castings Private Limited

v Madras Cupprum Metals Private Limited

v Mechemco Industries

v Paraksh Rubber House

v Polymet Engineering Plastics

v Pragati Engineering Works

v Premi Bright Electroplaters

v Rawal Rubber Mill

v Reyhal Industries

v Roto Seals Industries

v Rotodel Pumps & Gears Private Limited

v S. K. Beri Sales (Private) Limited

v SagguEngineers

v Saggu Gears India

v Satguru International

v Supreme Rolls and Shears (Private) Limited

v Swarajya Industries

v Telelec Corporation India

v Unitech Material Handlings

v Uttra Khand Rubber Works

v Vuican Industrial Engineering

v Warner Industries

v Guru Nanak Mineral Industries

v Indian Metal and Alloys Industries

v Industrial Engineers

v Jamshedji Construction Machinery

v Khalsa Engineers

v Lokpal Industries

v Perfect Engineering Works

v Rahul Cable Private Limited

v Rajesh Wire Netting Works

v Real Marble (Private) Limited

v Sai Baba Stone Crusing

v Shah Engineering

v Shiv Shakti Industries

v Swastik Rubber Industries

v Tushaco Pumps Limited

v Vinod Ceramic

v Anand Mechanical

v Apollo Engineering Works

v Aurtech Construction Equipments Limited

v Aurtech Hydracons

v Baba Clutch Facing Workshop

v Comet Engineering Works

v Corotech Bitumastic

v MNK Wire Products (MANCO & Company)

AS PER WEBSITE

Bhushan Steel & Strips Limited, an ISO 9002,QS 9000 certified and the flagship company of Rs. 15000 millions ($300 million approx.)which is likely to go up to Rs. 25000 millions. BHUSHAN STEEL, is leading the Technological Revolution in Indian Cold Rolled Steel Industry today & defining new frontiers of customer satisfaction. It is India's largest (in the secondary sector) and the only CR Steel Plant with a line to manufacture Cold Rolled Coils & Sheets up to a width of 1700mm, as well as Galvanised Steel Coils & Sheets up to width of 1350mm.

The Company currently has a capacity to produce 0.6 Million MT/Annum of Cold Rolled Steel at Sahibabad Works and 0.4 Million MT/Annum of Cold Rolled Steel at Khopoli Works & out of that 0.25 Million MT/Annum of Galvanized Steel.

"EVERYTHING ASSOCIATED WITH THE TRADEMARK OF BHUSHAN STEEL REFLECTS THE COMPANY'S POSITION OF LEADERSHIP & QUALITY. AT BHUSHAN STEEL, IT IS OUR ENDEAVOUR TO ATTAIN THE HIGHEST LEVEL OF CUSTOMER SATISFACTION. "

Benefit To The Customers

Excellent Surface Finish

Auto shape control on both side of the mill.

Mill clean system with a synthetic coolant to avoid any coolant mark on the strip

Electrolytic cleaning line to remove 'IRON FINES' from strips, which helps in improvingthe life of salt - spray test after painting and avoids carbon soots completely. It also increases the tool's life in Press shop.Latest and sophisticated EDT machine from Waldrich Siegen, Germany, to provide controlled texture for better paint adhesion and to achieve surface roughness in close tolerances. On line Tension-Leveling equipment for better flatness and controlled elongation. Computerized Inventory Control Management and independent skin - pass mill to avoid any unwanted storage in between annealing and skin-pass process.

KATHABAR STORAGE SYSTEM is commissioned to avoid oxidation through dehumidifier to prevent rusting during storage.Electro-static rust preventive oil spray system for controlled oil coating on CRCA surface. Oil coating can be maintained in between 0.50Gms/m to 4.00 Gms/m.

Excellent Mechanical Properties

Practically, no variation in mechanical properties due to HICON 100% Hydrogen annealing furnace from EBNER, Austria.

The raw material selection is done by computerized program for different application.

Close Tolerances on Thickness, Width and Length

X-Ray thickness gauge to measure thickness in fraction of a micron from DMC, U.S.A.

X-Ray thickness scanner across the width from DMC, U.S.A.

Automatic computerized thickness control from DMC, U.S.A. and Hitachi, Japan.

Shim less tooling on slitting lines with computerized setting ensures correct width in close tolerances, from Germany.

Precision Cut-to-length lines to ensure length tolerances better than +/-0.75mm.

Automatic Electromagnetic Stacker on shearing lines to produce scratch free and finger print free steel.

Other Advantages

Better width combination facility to customers.

Higher yield in standard width material i.e. up to 92.45%.

Thickness, length and width tolerances as per customer requirements. The equipment is capable enough to maintain all these tolerances in the lower side of International Standards like JIS, BIS, ASTM and EN. The largest service centre in the Country available with Bhushan steel enables it to accept the orders in different sizes and service the same in shortest possible time. Well located on the map of the Country form smooth supply of Finished Goods.

Technology

Cold Rolled Steel

Cold Rolling Mill Complex is a towering citadel the first of its kind in the Steel sector of the country having equipments supplied by Global leaders.

The state-of-the-art 6 Hi 1700 mm Universal Crown Cold Rolling Mill from Hitachi, Japan ranks as the widest CR mill in India along with additional features of both side auto shape control with automatic spot cooling system for better shape & flatness with themost advanced Level-II adaptive control computerization. It is the first mill of its kind in the whole of Asia.

The mill is capable of maintaining extremely close thickness tolerances and can produce ultra-thin CR Steel for inner shield of Picture Tube and Battery application i.e. up to a thickness of 0.10mm in close tolerances.

The company has also installed Electrolytic Cleaning Line (ECL) with technologyfrom Nippon Denro, Japan to remove surface contaminants.

The 100% Hydrogen based (Hicon) high convection annealing furnaces from world leader Ebner, Austria areyet another exclusive feature of their identity.

The Skin Pass mill from Clecim, France with tension leveler and Electrostatic Oiling for uniform spray of rust preventive oil, provides world standard quality of material suitable to manufacture Automotive Skin panels.

The Roll Grinding machine and the Electrical Discharge Texturizing machine (EDT) for the rolls from the world leaders Waldrich Siegen, Germany ensures uniform Mirror finish material for Automobile Head lamp reflectors and other Electroplated items & Matte surface finish, which in turn improves the paintability, suitable for automobile skin panels, respectively.

The CR Slitters from Fimi, Italy and Daehyun, Korea with most advanced features like 3 M tension roll and computerized shim-less tooling ensure absolute scratch-free material with a very close tolerance and width as low as 10mm. These machines are the first of their kind in the country.

The Cut-to-length lines from Heinrich Georg, Germany; Fimi, Italy and Daehyun, Korea are milestones of precision engineering. These machines provide a very close tolerance on length as low as +2/-0mm (even less can be achieved).The on-line washing, oiling, electromagnetic sheet stacker and on-line packing system attached to these lines ensure International Quality Standards. These are the first lines of their kind in the country where handling of sheets are completely automated during shearing and packing.

To ensure the right quality input of HR Coils to the mill, the company has the most modern Push-Pull Pickling line with technology back up from Proeco, Canada.

In addition to the above the company also has one latest 6 Hi 1020mm & one 20 Hi 1250mm wide Sendziemer mill with automatic gauge control and 8 CR Slitters and 14 Cut-to-length lines.The company enjoys uninterrupted power supply from the UPSEB on 220KV, which is the first of its kind in the State of Uttar Pradesh. Further to have captive and better quality of power for the smooth operation of the complex, company has installed 24MW Captive Power Plant imported from MAN B&W, Germany. This ensures consistent supplies of material to their customers even in times of acute power shortage.

Galvanized Steel

The Galvanized sheets & coils manufactured by the company have excellent Zinc adhesion and corrosion resistance achieved by applying a special coating of Zinc & Zinc alloys. This is further enhanced by giving a special chemical treatment on the zinc-coated surface to prevent the formation of white rust

The Company has three Galvanizing lines consisting of most modern continuous annealing furnaces based on the design of Stein Heurty, France.

One of the Galvanizing line has on line 4 Hi skin passing cum tension leveling facility to produce Galvanized skin passed Material with zero spangles for White Goods, Domestic appliances & Automotive applications.

The on line coating thickness control equipment from Valmet, Canada and Radiometrie, Germany attached to the galvanizing lines ensure uniform zinc coating mass.
The Galvanized skin passed sheets & coild have an excellent surface finish suitable for manufacturing products of aesthetic importance. This product is widely accepted and extensively used for the manufacture of Air Conditioners, Washing Machines, Refrigerators, Dish Washers, Visi Coolers, Microwave Ovens, Computers, Bus body, Automobile Components, Colour coated sheets & coils.The company is the largest supplier to these industries-in fact single source supplier to many of the customers. Recently, the company has also introduced Galvanneal material, which is most suitable for Appliances and Automobiles industry.

The Galvanized sheets, coils and corrugated sheets manufactured by the company are globally accepted especially in important international markets of Europe, USA, Canada, South Africa, Kenya, Ethiopia, UAE, Qatar, Oman, Nepal, Myanmar, Taiwan, Vietnam, China, Uganda, Singapore, Tanzania, Bangladesh.

Strategic Alliance

In order to acquire the latest know-how to establish the quality requirements of all customers in Automobile, White Goods Appliances & General Engineering industry, the company has entered in to a technical collaboration with the world's one of the largest steel producer Sumitomo Metal Industries, Japan.

Other Products from Group Companies

Group Companies	Products	Section / Dimension	Grades	Standard Used	Applications
Bhushan Industries Limited, Chandigarh	Narrow Width CR	Width: 12-535 mm Thickness: 0.30-4.00 mm	EDD,DD,D High Carbon Steel	IS / JIS	Automobile, white goods and General Engg. Industry
Bhushan Metallics Limited, Derabassi (Punjabi)	Cable Tape	Width: 20-70 mm Thickness:0.50-0.80 mm 'Zn' coating: 210 gm/m* & above on each Side	D	IS	XLPE Cables
	M.S ERW Pipes	Outside Diameter: 1/2"-4" (15 mm to 100 mm N.B.)	Black & GI	IS/BS/ ASTM	Water, air and gas Application
Bhushan Metallics Limited, Chandigarh	Precision Tubes	Outside Diameter: 8.80 - 50.80 mm Thickness : 0.35 - 3.25 mm Length : 3.0 - 9.0 mtr in long length. 150 - 2500 mm in cut length.	Bright & Oiled	IS/BS/ JIS/DIN/ ASTM	Automobile, Bycycle, Process , Electrical & General Engg. Industry.
Bhushan Industries Limited, Calcutta.	CR/GP/ GC	Width:1250 mm (max.) Thickness : 0.12 - 1.60 mm	EDD, DD, D	IS/ JIS	Roofing, Construction &General Engg. Application.

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.41.57
UK Pound	1	Rs.82.14
Euro	1	Rs.55.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO
MERIT POINTS		NO
--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		68

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.	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

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