MIRA INFORM REPORT

Report Date :

13.08.2008

IDENTIFICATION DETAILS

Name :	USHA MARTIN LIMITED
Formerly Known As :	USHA BELTRON LIMITED
Registered Office :	2 A, Shakespeare Sarani, P S Shakespeare Sarani, Mangal Kalash, Kolkata – 700071, West Bengal
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	22.05.1986
Com. Reg. No.:	21-91621
CIN No.: [Company Identification No.]	L99999WB1986PTC091621 L31400WB1986PLC091621
TAN No.: [Tax Deduction & Collection Account No.]	CALU01301G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of jelly filled telephone cables, wire and wire ropes and steel.

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and diversified company having satisfactory track. Available information indicates high financial responsibility of the company. Their trade relations are fair. Financial position of the company is good. Business is active. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a long-run

LOCATIONS

Registered Office :	2 A, Shakespeare Sarani, P S Shakespeare Sarani, Mangal Kalash, Kolkata – 700071, West Bengal, India
Tel. No.:	91-33-2282 8540 / 41 / 6737 / 8545 / 39800300
Fax No.:	91-33-2282 1660 / 1971 / 39800400
E-Mail :	gdsaini@ushamartin.co.in r.jhawar@ubest.sprintrpg.ems.net.in kalyanc@ushamartin.co.in
Website :	http://www.ushamartin.india.com
Corporate Office :	Agarwal Estate, 168 CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India
Tel. No.:	91-22-26160176/ 26528477
Fax No.:	91-22-26526774
Email:	Marketing-west@ushamartin.com
Administrative Office :	Usha Alloys and Steel Division, Post Box 147, Jamshedpur – 831001, India
Tel No.:	91-657-2386052 / 2386070
Factory :	Wire and Wire Ropes \ Cable \ Usha Ismal Division Tatisilwai, Ranchi – 835 103, Bihar, India Steel Division Adityapur, Jamshedpur – 831 001,Jharkhand, Bihar, India Rolling Mill Division 12/16, Nawalganj, Agra – 282 006, Uttar Pradesh, India Machinery Division Main Road, Whitefield, Bangalore – 560 066, Karnataka, India Others: Barjamda, Jharkhand, (Iron Ore mines) Hoshiarpur, Punjab Doddanekundi Industrial Area, Bangalore

DIRECTORS

Name	Mr. B K Jhawar
Designation	Chairman
Age	68 years
Qualification	Graduate
Date of Joining	Since Incorporation
Previous Employment	ICICI Limited - Director
Name	Mr.Rajeev Jhawar
Designation	Managing Director
Age	38 years
Qualification	B.Com. (Hons)
Experience	17 years
Date of Joining	01.10.1997
Previous Employment	Usha Martin Industries Limited – Joint Managing Director
Name	Dr. P. Bhattacharya
Designation	Executive Director
Age	53 years
Qualification	B.E.(Mech.), M. Tech. (Design Engg.), PHD (Solid Mechanics)
Experience	32 years
Date of Joining	02.02.1998
Previous Employment	Essar Steels Limited – Chief Operations Officer
Name :	Mr. Prashant Jhawar
Designation :	Vice Chairman
Name :	Mr. U. V. Rao
Designation :	Director
Name :	Mr. A. K. Choudhri
Designation :	Director
Name :	Mr. M J Subbaiah
Designation :	Director (Nominee of ICICI)
Name :	Mr. M J Subbaiah
Designation :	Director - Nominee (ICICI)
Name :	Mr. J K Roy
Designation :	Director - Nominee (IDBI)
Name :	Mr. N J Jhaveri
Designation :	Director
Name :	Mr. Suresh Neotia
Designation :	Director
Name :	Mr. Ashok Basu
Designation :	Director
Name :	Dr. P Bhattacharya
Designation :	Director

KEY EXECUTIVES

Name :	Mr. A K Somani
Designation :	Company Secretary
Name :	Mr. S N Guha
Designation :	Chief Operating Officer
Name :	Mr. S K modak
Designation :	Chief Operating Officer
Name :	Mr. Rahul Gupta
Designation :	Chief Operating Officer
Name :	Mr. Subir Sen
Designation :	President
Name :	Mr. A Basak
Designation :	Senior Vice President
Name :	Mr. S Somani
Designation :	Senior Vice president
Name :	Mr. K C Dujari
Designation :	Senior Vice president
Name :	Mr., A K Dutta
Designation :	Senior Vice President
Name :	Mr. D. J. Basu
Designation :	Vice President
Name :	Mr. S. K. Jala
Designation :	Vice President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2008)

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of promoter and Promoter Group
India -
Individual / HUF	3152329	1.26
Bodies Corporate	93087050	37.20
Foreign -
Bodies Corporate	19276135	7.70
Public shareholding
Institution -
Mutual Funds and UTI	32057319	12.81
Financial Institution / Banks	626100	0.25
Insurance Companies	9818787	3.92
Foreign Institutions Investors	50777471	20.29
Non Institutions
Bodies Corporate	14806263	5.92
i) Individual shareholders holding nominal share capital upto Rs. 0.100 millions	15432526	6.17
ii) Individual shareholders holdings nominal share capital in excess of Rs. 0.100 millions	5553430	2.22
Shares held by Custodians and against which depository Receipts have been issued.	5654370	2.26
Total	250241780	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of jelly filled telephone cables, wire and wire ropes and steel

Products :

Products Description	Item Code No
Wire Ropes, Strands Including Locked Coil, Wire Ropes	7312
Wires	7217
Wire Rods	7213

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Wire Drawing And Allied Machines
Wire Machines	Nos	50
Wire Rods	MT	228000
Wire Ropes, Strands Including Locked Coil
Wire Ropes	MT	55000
Wire	MT	41700
Pig Iron /Hot Metal	MT	200000
Billets	MT	360000
Sponge Iron	MT	100000
Hydralic Machines Including Presses. Proof Loading Machines Accessories	Pcs.	100
Blocks, Dies And Accessories	---	400
Ferrules, Slings, Fittings And Accessories Equipment And Materials For Prestressed Concrete System And Bargrip Seamless	Pcs.	700000
Tubes For Splicing x	Pcs.	460000
Concrete System And Bargrip Seamless	Pcs.	--
Jelly Filled	--	---
Telecommunication
Cables	LCKM	64
Bright Bar	MT	12000
Conveyor Cord	MT	840
House Wire	KM	1680

GENERAL INFORMATION

Suppliers :

• Eastern Steels
• Acme Industries
• Tatanagar Refractory and Minerals Company Limited
• Sarvesh Refractory P Limited
• Hytek Industries Kaypee Enterprises
• Kaypee Enterprises
• Bihar Precision Machine Tools Manufacturing Company
• Metropoliton Casting and Engineering Works
• Madhuraj Imprints Private Limited

No. of Employees :

8000

Bankers :

• State Bank Of India
• Canara Bank, Kolkata, West Bengal, India
• ICICI Bank Limited
• Induslnd Bank Limited
• Allahabad Bank, Kolkata, West Bengal, India
• The Hongkong and Shanghai Banking Corporation Limited, Kolkata, West Bengal, India
• HDFC Bank Limited
• BNP Paribas
• American Express Bank Limited
• The Bank Of Tokyo Limited, Kolkata, West Bengal, India
• Axis Bank Limited
• Export Import Bank Of India

Facilities :

SECURED LOAN	31.03.2008 ( Rs. in millions)
Debentures
500000 9% Secured Redeemable Non –Convertible Debentures of Rs.33.33 each	-
Term Loan From- Financial. Institutions – Rupee Loan	500.000
Banks --
Rupee Loans	2755.184
Foreign Currency Loans	3767.329
Interest Free Sales Tax Loan from a State Government	36.582
Vehicle Loans from Banks	0.006
Working Capital Loans from
Rupee loan	1406.997
Foreign Currency Loans	204.510
Total	8670.608

UNSECUREDL OAN	31.03.2008
	( Rs. in millions)
Fixed deposit [Repayable within one year Rs. 0.042 millions (previous year Rs. 0.105 millions]	11.414
Interest free Sales Tax loan from a State Financial Institution	-
Loan From Bnaks	761.414
Total	9432.0022

NOTES:

Term Loans from Financial Institutions and Banks are secured/to be secured by way of Joint Equitable Mortgage by deposit of title deeds of certain immovable properties and hypothecation over movable assets of the Company both present and future subject to prior charges of the Company's Bankers on specified movable assets for Working Capital requirements.

Sales Tax Loan by way of deferred sales tax benefit on the expansion of capacity is secured by way of Joint Mortgage by deposit of title deeds on certain immovable properties ranking pari-passu with existing lenders. The amount is payable in equal installments over a period of 5 years starting from 1st April, 2004.

Working Capital Loans from Banks are secured by hypothecation of all current assets of the Company. Further such loans from Banks are also secured by charge on certain immovable properties, subject to prior charges in favour of Financial Institutions and Banks created/to be created in respect of any existing/future financial assistance/accommodation which has been/may be obtained by the Company. Some of the Securities as mentioned in Notes 1 and 2 rank pari-passu.

Vehicle Loans from Banks are secured by way of hypothecation of the vehicles financed.

Banking Relations :

-

Auditors :

Name :

Price Waterhouse

Chartered Accountants

Address :

Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar,

Kolkata – 700 091, West Bengal, India

Memberships :

• Confederation of Indian Industry

Joint Venture Company:

• Gustav Wolf Speciality Cords Limited
• Pengg Usha Martin Wires Private Limited
• Ccl Usha Martin Stressing Systems Limited
• Dove Airlines Private Limited

Group Company:

• Usha Siam
• Brunton-Wolf Wire Ropes FZ Company
• U M Cables Limited
• UM America
• UMIL

Associates/Subsidiaries :

• Usha Martin International Limited
• Usha Martin American Inc.
• Usha Martin UK Limited
• Usha Martin Scandanavia A/S
• UMICOR Africa (Pty.) Limited
• European Management And Marine Corporation Limited
• EMM Caspian Limited
• E.M.M Kazakhstan Limited
• UMICOR Ropes (Pty.) Limited
• Usha Siam Steel Industries Public Company Limited
• Brunton Shaw UK Limited
• Usha Martin Singapore Pte. Limited
• Burnton Wolf Wire Ropes FZCO.
• UM Cable Limited
• Usha Martin Holdings Limited
• Usha Martin Australia Pty Limited
• Brunton Shaw America Inc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity shares	Rs.1/- each	Rs.500.000 Millions
10000000	Redeemable Cumulative Preference Shares	Rs.50/- each	Rs.500.000 Millions
	Total		Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250241780	Equity shares	Rs.1/- each	Rs.250.242 Millions
Add	Share forfeited		Rs.0.678 Million-
	Total		Rs.250.920 Millions

Note:

Out of the above 250,241,780 Equity Shares –

• 5,654,370 (Previous Year 6,774,370) Equity Shares represent Global Depository Receipts (GDRs).
• 57,384,055 Equity Shares allotted as fully paid up pursuant to the Scheme of Amalgamation without payment being received in cash.

In April 2007 the Company has issued and allotted 2,175,000 Equity Shares of Rs.5 each at a premium of Rs.148 each on preferential basis to certain companies in the promoter group upon conversion of Convertible Equity Warrants issued in earlier year in keeping with SEBI guidelines.

In terms of the resolution passed at the Annual General Meeting held on 25th July, 2007 the Company sub-divided each of the equity shares of Rs.5 each fully paid up into five equity shares of Re.1 each fully paid up.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		250.920	240.045	221.920
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8404.090	6936.730	5605.048
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8655.010	7176.775	5826.968
LOAN FUNDS
1] Secured Loans		8670.608	7441.398	6717.748
2] Unsecured Loans		761.414	52.340	158.367
TOTAL BORROWING		9432.022	7493.738	6876.115
DEFERRED TAX LIABILITIES		1467.708	1434.331	1335.064
EQUITY WARRANTS		334.950	33.278	88.740
TOTAL		19889.690	16138.122	14126.887
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9456.953	9000.079	8847.172
Capital work-in-progress		5033.888	1970.586	695.615
INVESTMENT		1658.014	1600.805	1525.755
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5324.181	3390.551	2621.667
	Sundry Debtors	2563.505	2269.104	1982.492
	Cash & Bank Balances	463.607	370.805	517.489
	Other Current Assets	340.486	260.942	225.640
	Loans & Advances	4024.216	2119.931	1648.665
Total Current Assets		12715.995	8411.333	6995.953
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	8609.576	4612.543	3769.487
	Provisions	381.723	262.565	210.109
Total Current Liabilities		8991.299	4875.108	3979.596
Net Current Assets		3724.696	3536.225	3016.357
MISCELLANEOUS EXPENSES		16.139	30.427	41.988
TOTAL		19889.690	16138.122	14126.887

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		16558.987	14086.047	12317.878
Other Income		156.401	143.261	94.846
Total Income		16715.388	14229.308	12412.724
Profit/(Loss) Before Tax		2007.127	1383.960	1007.385
Provision for Taxation		558.800	369.200	357.744
Profit/(Loss) After Tax		1448.327	1014.760	649.641
Export value		NA	3657.376	3279.154
Import Value		NA	2368.032	2024.589
Expenditures :
	Raw Material Consumed	7478.097	5816.061	5250.697
	Purchases of general Merchandises	19.899	15.302	9.616
	Increase/(Decrease) in Finished Goods	(295.476)	[238.579]	[155.097]
	Manufacturing, Selling and Administrative expenses	6036.422	5801.012	4850.660
	Interest	759.209	762.804	730.996
	Depreciation & Amortization	803.752	762.804	760.996
	Other Expenditure	0.0000	0.000	0.000
Total Expenditure		14708.261	12895.136	11405.732

QUARTERLY RESULTS

Year	30.06.2008 1^st Quarterly
Type
Sales Turnover	4904.000
Other Income	61.800
Total Income	4965.800
Total Expenditure	3626.500
Operating Profit	1339.300
Interest	285.600
Gross Profit	1053.700
Depreciation	201.400
Tax	285.300
Reported PAT	567.000

KEY RATIOS

Year	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	1.07	1.11	1.46
Long Term Debt-Equity Ratio	0.84	0.96	1.26
Current Ratio	1.02	1.13	1.14
TURNOVER RATIOS
Fixed Assets	1.13	1.02	0.93
Inventory	4.22	5.20	4.89
Debtors	7.60	7.36	5.95
Interest Cover Ratio	3.32	2.79	2.22
Operating Profit Margin (%)	19.77	18.67	19.39
Profit Before Interest And Tax Margin (%)	15.64	13.79	13.70
Cash Profit Margin (%)	12.02	11.36	10.55
Adjusted Net Profit Margin (%)	7.89	6.49	4.86
Return On Capital Employed (%)	17.56	15.81	14.44
Return On Net Worth (%	18.30	15.61	12.57

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORTS:

Review of Operations:

The Company achieved net turnover of Rs.16559.000 Millions as against Rs.14086.000 Millions In the previous year, higher by 17.6 %. The gross sales before adjustment of inter divisional sales were Rs.23922.800 Millions, registering a growth of 17.5% over the previous year.

Subsidiaries:

The Company has continued to get significant synergy and support from its overseas investments resulting into impressive growth in turnover and financial performance.

Subject a wholly owned subsidiary of the Company acquired De Ruiter Staalkabel B.V, [DRS] a company incorporated in Netherlands, which is a distribution company having warehousing and rigging facilities. DRS is now a wholly owned subsidiary of UMIL. The Company has purchased equity shares of Brunton Shaw Americas Inc. (BSA), from UMIL. BSA is now a direct wholly owned subsidiary of the Company. BSA has set up a wire rope manufacturing plan in Houston, USA. UM Cables Limited (UMCL), is a major manufacturer of telecommunication cables.

During the year there was an interest from Manchester Cables Limited (MCL), UK, to acquire 100% equity of this Company and an MOU was signed to that effect. The matter could not proceed further as MCL has intimated their inability to conclude the purchase.

The Statements under Section 212 of the Companies Act, 1956 in respect of subsidiaries of the Company are annexed to this Report.

Steel Business:

The Steel business accounts for 57.4% of gross activity level of the Company and 45.3% of reported turnover.

This business as a whole achieved a turnover of Rs.11976.700 Millions in the year under review, as against Rs. 10102.700 Millions. In the previous year, higher by 18.5%. Usha Alloys & Steel Division (UASD) has recorded a turnover of Rs.10415.200 Millions against Rs.9692.000 Millions in the previous year, higher by 7.5%. However, the gross profit margin improved from 19.2% in the previous year to 20.6%.

The export turnover of steel business was lower at Rs.860.100 Millions in the year under review against Rs. 1022.800 Millions. The lower volume was on account of meeting requirements of domestic customers and for higher captive value addition products. During the year under review, inter divisional transfers for captive use has gone up to Rs.5320.600 Millions. Against Rs.4500.400 Millions. showing an increase of 18.2%.

The prices of key raw materials especially coke, coal, iron ore and some critical ferro-alloys has been raising throughout the year on account of demand supply mis match. Only a part of increase could be passed on to the customers under prevailing market conditions.

In steel business, the Company has achieved a fair level of integration with iron ore mining activities by increasing use of its own iron ore to 91.0% during the year under review from 57.6% in the previous year. The Company is awaiting approval for enhancement of iron ore mining capacity. During the current financial year the company expects to keep ratio of captive iron ore at the same or higher levels. The coal mining activities are rd also expected to commence by 3 quarter of current financial year.

For growth of steel business, the Company has enhanced the scope of projects while these were under implementation. The facilities being set up now include 2 Mini Blast Furnace, Bright rd Bar Mill, Captive Power Plants, 3 Steel Melt Shop (consisting of Electric Arc Furnace, Ladle Furnace and Vacuum Degassing), Bloom Caster, 700 TPD DRI Plants (with related auxiliaries and utility facilities), railway sidings, enrichment of mineral resources, etc.

The implementation of projects is progressing as per schedule. rd Coal Mine, DRI Plants, 3 SMS, 30 MW CPP, Bloom Mill and Bright Bar Plant at Chennai are expected to get commissioned during the financial year 2008-09. These are expected to bring a significant jump in volume and profitability of Steel Division from the current financial year (partly) and thereafter.

Construction Steel Division at Agra, which was acquired in the previous year to cater to growing requirement in construction steel segment in north India, achieved a turnover of Rs.1561.500 Millions. in first full year the Company. The gross profit margin was 2.9% during the year.

Wire Ropes and Speciality Products Business

The Wire Ropes and Speciality Products business accounted for 42.0% of gross activity level and 54.0% of reported turnover of the Company.

This business achieved turnover of Rs.9098.100 Millions. as against Rs.7854.200 Millions. in the previous year, registering a growth of15.8% over the previous year. The gross profit margin improved to 16.2% from 14.3%.

The export turnover of this business has grown by 6.9% to Rs.2865.200 Millions. During the year as against Rs.2680.300 Millions. in the previous year.

Besides continuing existing focus on improving productivity, production and profitability, this division is now executing strategies for enhancement and growth in every key aspect such as improvement in product quality and introduction of new products to capture more market share both in domestic and export markets.

In keeping with these new priorities, commissioning of stateof- the-art LRPC line, latest generation pathfinder machines with sophisticated electronic controls and upgradation of furnaces incorporating latest technologies have been completed during the year under review. Further, with a view to increase market share steps are being taken to increase capacity to 100,000 MT of wire ropes at Ranchi and Hoshiarpur plants.

To improve upon quality and availability of power the Division has taken up to set up 2X10 MW cative power plants at Ranchi, which will be commissioned in FY 2011.

After getting “2005 Award for TPM Excellence - First Category” from Japan Institute of Plant Maintenance (JIPM), the first by any wire and wire rope making company in India, Wire Rope & Speciality Product Division at Ranchi has applied for Excellence in Consistent TPM Commitment. The audit for the same is scheduled to be taken up in July 08. This will ensure further improvement in operational excellence, quality, delivery and cost management.

The Wire Rope Division (North) has achieved major shift of product portfolio from mild steel to high carbon, over the period since take over in May 2005, by modification of machines and the team commitment. This Division is targeting to increase production of ropes to 12000 MT by 2009.

Cable Business

The cable business under UM Cables Limited, a wholly owned Indian subsidiary of the Company, achieved a gross turnover of Rs.2116.500 Millions., higher by 16.6%, against Rs.1814.600 Millions. In the previous year. Profit before tax improved to Rs.28.900 Millions. From Rs.27.200 Millions. in the previous year.

However, this company has maintained exports at Rs.389.200 Millions., which accounted for 18.4% of turnover. This company continues to be the most significant exporter of telecommunication cables from India.

UM Cables's continued focus of diversified customer base, in domestic and international markets, remains its' competitive edge, which is expected to enable this company to perform better than peers in the industry.

International Business

Gross level of activities of overseas subsidiaries has increased by 15.4% to Rs.8562.400 Millions. in the year under review from Rs.7422.800 Millions. in the previous year.

The international business accounted for 25.4% of consolidated gross level of activity of the Company.

The Company has presence in international markets through manufacturing and distribution subsidiaries located in different parts of the world.

Usfia Martin /nternafiona/ Limited (UMIL):

UMIL, a wholly owned subsidiary of the Company, is having its' operations in UK and European markets through wholly owned subsidiaries namely a) Usha Martin UK Limited, which has facilities ranging from manufacturing, distribution and providing end use solutions to off shore oil & gas sector and b) De Ruiter Staalkabel B.V, Netherlands, which has distribution facilities, was acquired during the year.

Consolidated turnover of UMIL, during the year, was GBP 45.3 Mn. against GBP 36.0 Mn. in the previous year. UMIL reported consolidated net profit of GBP 2.5 Mn. against GBP 1.6 Mn. In the previous year.

Brunton Shaw Americas Inc (BSAI):

BSAI, set up jointly with UMIL, has set up wire rope manufacturing facilities in Houston, USA. BSAI has commenced production. The equity capital in BSAI held by UMIL has been acquired by the Company, making it a directly held wholly owned subsidiary.

Usha Martin Americas Inc (UMAI):

During the year, UMAI, a wholly owned subsidiary of the Company, achieved a turnover and profit after tax of US $ 22.6 Mn. and US $ 1.0 Mn. against US $ 22.2 Mn. and US $ 0.9 Mn in the previous year, registering growth of 1.8% and 5.7% respectively.

With the manufacturing level of BSAI increasing, UMAI along with BSAI would have greater reach and product range for US and nearby markets. This is expected to yield long term benefits to the group's global wire rope business.

Brunton Wolf Wire Ropes FZCo (BWWR):

BWWR, in which the Company holds 60% equity with the balance being held by Gustav Wolf of Germany, achieved turnover and profit after tax of AED 65.5 Mn and AED 3.4 Mn. during the year, as against AED 51.7 Mn and AED 2.9 Mn in the previous year, thus achieving a growth of 26.7% and 20.6% respectively.

Usha Siam Steel Industries Public Company Limited (USSIL):

USSIL, in which the Company holds 97.8% of equity, achieved a turnover of Thai Baht (Baht) 1,587 Mn. during the year under review against Baht 1,348 Mn. in the previous year and reported a net profit of Baht 71 Mn. against Baht 28 Mn. in the previous year. The management expects USSIL to improve performance in the subsequent years. USSIL continues to repay installments of long term loans on due dates out of its' operational earnings.

Usha Martin Singapore Pte Limited (UMSPL):

UMSPL continued its growth trend in the year under review. UMSPL achieved a consolidated turnover of S$ 44.9 Mn and net profit of S$ 2.2 Mn. during the year under review, against S$ 34.5 Mn. and S$ 1.1 Mn. in the previous year, thus recording growth of 30.2% and 96.4% respectively. UMSPL is having presence in Vietnam and Indonesia through representative offices.

Usha Martin Australia Pte Limited (UMAPL), a wholly owned subsidiary of UMSPL has achieved a turnover of A$ 6.5 Mn. And profit after tax of A$ 0.27 Mn. during the year under review, against A$ 5.9 Mn. and A$ 0.2 Mn in the previous year, thus recording growth of 8.8% and 9.5% respectively. UMSPL, along with UMAPL, expects to achieve a reasonably higher performance in the years to come, on the strength of diversified geographical presence in south-east Asian countries and Australian markets.

As per website details:

1960 - The Company was incorporated as Usha Martin Black (Wire Ropes) limited having its wire rope plant at Ranchi. The name was changed to Usha Martin Black Limited. in 1979 and further changed to Usha Martin Industries Ltd. (UMIL) in 1983.

1965 - UMIL promoted Usha Ismal Limited. (UIL) in collaboration with CCL Systems Limited of UK for the manufacture of fittings and accessories, equipment for pre-stressed concrete system, wire ropes and wire ropes splicing equipment at Ranchi. UIL merged with UMIL in 1990 and became a division of the company

1971 - UMIL promoted Usha Alloy Steels Limited (UASL) for the manufacture of billets at Jamshedpur. UASL merged with UMIL in 1988.

1975 - UASL acquired an ongoing rolling mill at Agra.

1975 - UMIL set up its Machinery Division at Bangalore for the manufacture of Wire Drawing and allied machines in technical collaboration with Marshall Richards Barcro Limited (MRB) of UK.

1979 - In order to obtain steady supply of wire rods for its wire rope plant, UASL set up a Wire Rod Rolling Mill at Jamshedpur.

1987 - UMIL, alongwith Bihar State Electronics Development Corporation, promoted Usha Beltron Limited. (UBL) in collaboration with AEG KABEL of Germany for the manufacture of Jelly Filled Telephone Cables.

1997 - UMIL merged with UBL wef 1st October, 1997

2000- Acquisition of speciality wire rope manufacturing plant in UK “Brunton Shaw”

2000- Commisioning of 25 mw thermal power plant for captive consumption.

2001- – Commisioning of 2nd sms to enhance capacity and produce quality specialty steel.

2003- Usha Beltron Limited Changed its name to subject. Subject created Fine Cord Plasticated coated Fine wires, household wire, Polymer coated wire, Fine Ropes and Bright Bars manufacturing facilities in Tatisilwai- Ranchi.

At present, the group has three principal manufacturing divisions of Wire and Wire Rope, Steel and Cables.

Profile:

Inception

Started in 1961 in Ranchi, Jharkhand as a wire rope manufacturing company, today the Usha Martin Group is a Rs.30000.000 Millions conglomerate with a global presence.  The group has set new standards in the manufacture of wire rods, bright bars, steel wires, speciality wires, wire ropes, strand,  conveyor cord, wire drawing and cable machinery.  With continuous growth in both the domestic and international markets, Usha Martin, the Group’s flagship company has emerged as India’s largest and the world’s Second largest steel wire rope manufacturer.  

Company is the path to sustainable growth was long; the management constantly tried out innovative business practices.  With initiative to diversify the customer base by venturing into the international markets, moving up the value chain and fully integrating its business process to maximize stakeholder value.

Thinking Big

In 1979, the company set up a steel plant with wire rod rolling mill at Jamshedpur, to benefit from business integration. This ensured a steady supply of steel for the manufacture of value added products. Today, the Jamshedpur unit has a truly integrated speciality steel manufacturing facility of 400,000 MT per annum.  Out of which, about 50% is consumed internally by its plant in Ranchi, Hoshiarpur & Bangkok, producing steel wire, steel strand, steel cords, bright bar and steel wire ropes.  All its manufacturing facilities are ISO 9000 certified and the steel plant was India’s first to receive the TPM Excellence Award from JIPM, Japan. 

Going Global

With local success come global aspirations. Currently, the company has overseas manufacturing operations in Thailand, UK, USA and Dubai. Besides a vast network of distribution centres and marketing offices spread across the globe to support an ever growing worldwide customer base. The company exports over 60% of the wire rope output and about 20% of the total wire rods produced.

Looking Forward

Compnay future plans are focused on its operation in Jharkhand – a state rich in mineral resources. Future priorities include product mix enrichment, cost reduction and infrastructural improvements. Already flourishing in its recent foray into mining operations, the company is planning to invest in its iron ore and coal mines, sinter plant, pellet plant, power plants, while also enhancing its steel making and value added products capacity with an investment of Rs.21000.000 Millions. 

Building Bridges

Company apart is its unwavering commitment to social responsibility. For over three decades the company has invested ample man-hours and capital on community development projects for integrated prosperity in rural Jharkhand, through a CSR arm, Krishi Gram Vikas Kendra (KGVK).

This NGO undertakes various development initiatives, following a model of Total Village Management (TVM). Focusing on key areas like Watershed development, agricultural productivity, better health practices, and education, empowering women and encouraging micro enterprise. In recognition to its effort Usha Martin has been awarded the prestigious TERI Award for Corporate Social Responsibility in 2006.

FIXED ASSETS

• Land and Site Development
• Freehold
• Leasehold
• Buildings
• Plans and Machinery
• Electrical Installation
• Furniture and Fixture
• Water Treatment
• Office Equipment
• Vehicles
• Computer Software’s

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 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.42.40
UK Pound	1	Rs.80.54
Euro	1	Rs.62.96

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	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		56

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

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