MIRA INFORM REPORT

Report Date :

29.11.2008

IDENTIFICATION DETAILS

Name :	TATA RYERSON LIMITED
Registered Office :	Tata Centre, 43, Chowringhee Road, Kolkata, West Bengal – 700 071
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	17.04.1997
Com. Reg. No.:	084005
CIN No.: [Company Identification No.]	U27109WB1997PLC084005
TAN No.: [Tax Deduction & Collection Account No.]	CALT02091F
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Processing and Distribution of Steel Products.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 10980000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company of Tata Group, a premier industrial house. Available information indicated high financial responsibility of the company. Trade relations are fair. Payments are usually correct and as per commitments usually correct and as per commitments. The company may experience some difficulties due to 1) Shifting of project site from Singur to Gujarat 2) Slowdown of economy and global recession However, the company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Tata Centre, 43, Chowringhee Road, Kolkata, West Bengal – 700 071, India
Tel. No.:	91-33-66130600
Facsimile :	91-33-22882713
Website :	http://www.tataryerson.com

DIRECTORS

Name :	Mr. Sandipan Chakravortty
Designation :	Managing Director
Date of Birth/Age :	59 Years
Qualification :	M. Tech, IIT Kharagpur
Experience :	36 Years
Date of Appointment :	01.05.2001
Previous Employment/ Position held :	General Manager (Sales), Tata Steel Limited
Name :	Mr. Frank Munoz
Designation :	Chairman
Name :	Mr. Anand Sen
Designation :	Director
Name :	Mr. N. K. Misra
Designation :	Director
Name :	Mr. Brian Deck
Designation :	Director
Name :	Mr. Terence R Rogers
Designation :	Director
Name :	Mr. Vivek M Kamra
Designation :	Director
Committee of Directors : Audit Committee:	Mr. N. K. Misra Chairman Mr. Frank Munoz Mr. Anand Sen Mr. Brian A Deck
Executive Committee:	Mr. Frank Munoz Chairman Mr. Anand Sen Mr. Terence R Rogers Mr. Sandipan Chakravortty Managing Director Mr. Abhijit Kr. Sen, VP (F) and CFO
Remuneration Committee:	Mr. Frank Munoz Chairman Mr. Anand Sen Mr. Terence R Rogers Mr. Vivek M. Kamra

KEY EXECUTIVES

Name :	Mr. Abraham Stephanos
Designation :	COO - Chief Operating Officer
Name :	Mr. Abhijit Kr Sen
Designation :	Vice President (Finance) and CFO
Name :	Mr. Subir Khasnobis
Designation :	Vice President (Engineering and Eastern Region)
Name :	Mr. Riten Choudhury
Designation :	Vice President (Procurement and Western Region)
Name :	Mr. P K Sahu
Designation :	General Manager (HR and IR)
Name :	Mr. Ravi Inder Singh
Designation :	VP – Operations and CQH

BUSINESS DETAILS

Line of Business :

Processing and Distribution of Steel Products.

GENERAL INFORMATION

Bankers :

State Bank of India Bank of Maharashtra Bank of Baroda HDFC Bank Limited

Banking Relations :	---
Auditors :
Name :	A F Ferguson and Company Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
68250000	Equity Shares	Rs.10/- each	Rs.682.500 millions

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		682.500	682.500	682.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1515.000	1091.200	751.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2197.500	1773.700	1434.100
LOAN FUNDS
1] Secured Loans		1673.400	831.800	1103.000
2] Unsecured Loans		25.600	400.000	0.000
TOTAL BORROWING		1699.000	1231.800	1103.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3896.500	3005.500	2537.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1017.600	901.800	745.700
Capital work-in-progress		266.000	183.100	207.200
INVESTMENT		191.300	151.700	313.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1064.500	831.900	500.900
	Sundry Debtors	1944.700	1552.400	1010.100
	Cash & Bank Balances	268.400	153.400	168.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	338.900	207.500	80.900
Total Current Assets		3616.500	2745.200	1760.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1137.100	913.700	453.800
	Provisions	57.800	62.600	36.500
Total Current Liabilities		1194.900	976.300	490.300
Net Current Assets		2421.600	1768.900	1270.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3896.500	3005.500	2537.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		12800.100	10333.600	7444.900
Other Income		52.900	28.700	96.000
Total Income		12853.000	10362.300	7540.900
Profit/(Loss) Before Tax		622.500	530.800	405.300
Provision for Taxation		217.000	181.500	129.900
Profit/(Loss) After Tax		405.500	349.300	275.400
Imports :
	Finished goods for trading	106.252	52.217	NA
	Stores & Spares	1.425	2.281	NA
	Capital Goods	27.043	0.413	NA
Total Imports		134.720	54.911	NA
Expenditures :
	Raw Material Consumed	10835.000	8969.300	6147.100
	Excise Duty	0.000	0.000	113.600
	Power & Fuel	46.900	37.000	26.400
	Employees Cost	195.500	130.400	93.800
	Other Manufacturing Expenses	484.500	408.200	331.700
	Selling & Administrative Expenses	308.400	263.000	199.300
	Increase/(Decrease) in Finished Goods	10.800	(243.600)	(8.300)
	Miscellaneous Expenses	108.900	70.000	53.000
	Interest & Financial Charges	122.100	84.500	77.300
	Depreciation & Amortization	118.400	112.700	101.700
Total Expenditure		12230.500	9831.500	7135.600

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio	0.74	0.73	0.74
Long Term Debt Equity Ratio	0.33	0.22	0.28
Current Ratio	1.67	1.45	1.40
TURNOVER RATIOS
Fixed Assets	7.68	7.30	6.02
Inventory	13.50	15.51	14.05
Debtors	7.32	8.07	8.94
Interest Cover Ratio	6.10	7.28	6.24
Operating Profit Margin (%)	6.74	7.04	7.85
Profit Before Interest and Tax Margin (%)	5.82	5.95	6.48
Cash Profit Margin (%)	4.09	4.47	5.07
Adjusted Net Profit Margin (%)	3.17	3.38	3.70
Return on Capital Employed (%)	21.58	22.20	22.31
Return on Net Worth (%)	20.42	21.78	22.21

LOCAL AGENCY FURTHER INFORMATION

STATUS OF PROJECTS:

The company augmented its HR processing capacity at Jamshedpur by commissioning HR Slitter line to process special grade of high value steel in Q1’2007-08. Pune CR was fully commissioned in Q1 07-08.

PANTNAGAR:

All major equipment for Steel processing center for Tata Motors’s ACE Vehicle project at Pantnagar, Uttaranchal have been received. Erection and commissioning of these equipments under supervision of Chinese engineers are in full swing and the complete facility will be made operational by Q1 2008-09.

SINGUR:

As part of the company’s vision to move to stage 2/3 of service centre activities, Roll Forming Project at Singur, West Bengal, for supply of critical components to Tata Motor’s Nano, is on schedule. In line with TML requirement, the project is scheduled for commissioning in Q1 2008-09. The company is also setting up an Automotive Steel Service Centre at Singur, West Bengal for Tata Motor’s Nano small car project; this Unit is expected to be made operational by Q1 2009-10.

TADA:

The company is setting up a Plate Processing facility (Stage 2/3 activity) at Tada, Andhra Pradesh. The main processing equipments have been shipped and the site construction work is in full swing. The plant is expected to be commissioned by Q2 2008-09.

OPERATION:

All time high production has been recorded in Faridabad CR and Rebar. CR and Stainless steel processing has commenced in Pune. Eastern Region sales have reached all time high in FY’ 07-’08.

Tolling and distribution volume has reached all time high.

The overall capacity utilization continued to show an improving trend.

MARKET:

India’s GDP is projected to grow annually at an average rate of 9% over the 11^th Plan period. To sustain this growth, a total investment of Rs.20017760 millions (over 500 billion USD) has been lined up for the infrastructure sector by the Government of India. This would entail a quantum jump in the consumption of steel.

The year FY 08 witnessed a growth of 8.7% for the General Index of Industrial Production (cumulative April 07-February 08 for which published data are available) over the same period last year. The manufacturing sector took a fair share of this growth pie by clocking a growth of 9.1%.

In the Automobile sector, which is a strategically important segment for Tata Ryerson, the year was certainly not brilliant. Two wheeler industry particularly witnessed negative domestic sales growth of 7.9% due to rising interest rates and tighter credit norms by financing agencies. The Domestic passenger car sales rose by 11.79% in FY 08 and the sales of commercial vehicle increased by a modest 4.07%. The consumer durables industry where Tata Ryerson has appreciable exposure in the form of supply of galvanized plain sheets has grown by 3.3% from the corresponding period of the previous year.

Finished Steel Production in India had a year-on-year growth of 7.4% for Flat products and 10.2% growth for Long Products with respect to the last year. The major pull within the country came from the increasing demand from Earthmoving and Construction segment and infrastructure sector. Raw material, fuel and other input prices have kept on soaring which has triggered a world wide rise in the price of steel. Domestic steel prices have also risen over 40% over one year period.

With companies across the globe going for Transnationalisation, it had prompted the steel mills to increase their capacities. This has augured well for the steel service centres whose demand is increasing to cater to the customized need of steel consuming sectors. Several green and brown field expansions in Steel Service Centre were seen during this year.

Tata Ryerson has emerged as the market leader and trend setter in the field of Steel service centre. Shipments of distribution and processing Tonnes exceeded 1.3 million tonnes, an increase of 7% over last year.

WEBSITE DETAILS:

ORGANISATION:

Recognising the vast gap between steel producers’ offerings and the steel users requirements Tata Steel Limited and the erstwhile Ryerson Inc, USA, formed a 50:50 JV company Subject to promote the novel idea for the first Steel Service centre in the organised sector in India. With 6 large processing units, 16 sales locations and a host of partners like external processing agencies, suppliers, retailers and other stakeholders, today Tata Ryerson is probably the nation’s largest steel service organisation. The past 10 years brought astounding changes in the Indian growth scenario and Subject maintained its strong growth path with commitments to quality processing, innovations and exceptional customer focus. Keeping in view the rapid expansion, consolidation, technology change and a great number of steel consumers, Tata Ryerson went into a series of timely expansions and ventured successfully into new business areas Rebar processing, Stainless Steel (TRYNOX^TM, the only branded product of TRyL) and the recent Plate fabrication operations. The journey that started in 1997 with a small unit at Bara, Jamshedpur and a meager turnover of Rs.18.000 millions in 1997-1998 and continuously soaring high with a mind boggling figure of Rs.12250 millions in just 11 years with a volume of over 1.3 million tonnes, speaks volumes about the strategic directions and stable vision of the company.

TRyL is strongly equipped with processing plants at Jamshedpur, Faridabad and Pune and is coming up with new expansions at Chennai, Pantnagar and Singur to support major OEM's with facilities like Roll forming, stretch bending, plate fabrication. And this is all integrated with SAP R/3 ERP package. During the current year it is augmenting its processing capacity base by 0.5 Million tonnes. It is also planning to invest over 1000 Millions over the next two years to support the growth path.

PROJECT-ENGINEERING TECHNOLOGY:

The titanic growth of the company demands setting up of new facilities, rapid expansion of the existing plants and identification and tracking of new technologies. The fast changing world encourages them to innovate new ways to excel. In its journey towards excellence Tata Ryerson is entering into stage 2 / 3 of steel service centre activities. Projects, Engineering and Technology (P.E.T) division shoulders the mammoth responsibility to fulfill the aspirations of Tata Ryerson.

Activities like techno–commercial study and decision on viability of the project aligned with its business requirement, engineering, project management, construction supervision, erection and commissioning, trial run and handholding during the operation phase is the sole responsibility of PET. It also renders 24x7 engineering and technical solution to all the plants across the company.

Technological breakthroughs are the core competencies of the group, which is also proud for its record-breaking performance of the project, with cost saving and on-time completion.

The journey continues. The trunk of the ever-growing tree has to grow thicker and stronger to support all its branches.

PRESS NOTE

History

“Shaping Tomorrow, In Steel” is what Subject believed in since its emergence in India a decade ago. And with it, seeds were sown of an industry called “Steel Service Centres” for the first time in India. Even after ten years of continuous growth, Tata Ryerson is committed to create customer value by providing a wide array of processing, distribution and materials management services to both steel producers and customers.

Tata Ryerson has grown to become the largest player in this industry segment in India. It was set up in 1997 as a joint venture company promoted by Tata Steel Limited and Ryerson Inc. of the USA .Tata Steel Limited, rated as the number one Steel Company in the world according to World Steel Dynamics is now the sixth largest producer of steel in the world with a global footprint. Ryerson Inc. is North America’s largest distributor and processor of industrial materials with 160 centres across USA, Canada, Mexico ,China, and a turnover of over 6.28 Billion USD in 2007.

Business and Current Facilities

Tata Ryerson pursues its Mission to be the trusted and irreplaceable bridge between the steel producer and steel consumer. It provides the right quality and quantity of processed steel in customer specific sizes, just in time. Being a critical link in the steel supply chain, it helps in achieving significant cost reduction in inventory holding and pre production processing at the customers’ end.

Headquartered in Kolkata, Tata Ryerson’s six sophisticated service centres at Jamshedpur, Pune and Faridabad process more than 1 million tonnes of flat steel (Hot, Cold Rolled and Coated Steel). As a trend setter, it has set up a Reinforcement Bar processing centre in Faridabad (first of its kind in India) to cater to the burgeoning requirements from Construction sector in the National Capital Region. Its nationwide sales network is spread across 18 locations in India and services more than 1000 customers.

Vision and Growth

A 600 strong team of committed members believe in the Company’s core values of Credibility, Customer Focus, Continuous Improvement, Agility and Teamwork to make Tata Ryerson a great place to work in , guided by the company’s vision to be a ‘2 million Ton Steel Service Centre by 2010’ .

It has established a dominant position in this industry in India with a share of over 50% of India’s organized sector steel processing. It has surpassed a combined distribution and processing volume of one million tonnes and achieved a turnover of over Rs.10000 Millions in FY 07 with a Top Line Growth of 50 % over the last 5 years Tata Ryerson has always blazed new trails and established industry leadership in many areas like high end steel processing for automobiles and white goods, SAP implementation across the company and Rebar processing.

Now it has taken positive steps to move up the value chain to 2^nd and 3^rd stage processing like auto component manufacturing and fabrication.

Projects in Pipeline

Singur :

Tata Ryerson has been chosen as a sole supplier of six critical components for much awaited people’s car, “Nano” to be launched in the 2^nd half of this year .Work on 10 acres of land in the Singur Vendor Park is progressing in full swing. Parts are being developed in Canada and the operations Team would be trained there. Such critical roll formed and stretch bent parts are being made for the first time for automobile undercarriage. The total investment planned is 1000 Millions, which is set to go up further with the success of Nano and its increasing sales.

Pantnagar: This is another case of partnership with Tata Motors in the state of Uttarakhand where small commercial vehicle “Ace” is being manufactured in a brand new facility in Kumaun town of Pantnagar. Tata Ryerson is setting up a state of the art steel service centre with an investment of 450 Millions to cater to the vendors of Ace. The facility is set to be commissioned in the 1^st quarter of next financial year.

Tada: Eleventh Five year plan of India, which has just started, is set to witness investment of 300 billion USD in construction and infrastructure sector. Earthmoving and Construction Equipment Industry is poised for quantum growth. Tata Ryerson is partnering with Fortune 500 company Caterpillar of USA for setting up a Plate burning and fabrication Plant in Tada, about 70 km from Chennai, in the state of Andhra Pradesh at an investment of 450 Millions .

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.49.85
UK Pound	1	Rs.76.60
Euro	1	Rs.64.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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