MIRA INFORM REPORT

Report Date :

24.03.2008

IDENTIFICATION DETAILS

Name :	USHA MARTIN LIMITED
Formerly Known As :	USHA BELTRON LIMITED
Registered Office :	Mangal Kalash, 2 A, Shakespeare Sarani, Kolkata – 700 071, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	22.05.1986
Com. Reg. No.:	21-91621
CIN No.: [Company Identification No.]	L99999WB1986PTC91621
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. Its operations are spread cover Ranchi, Jamshedpur, Agra and Bangalore

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 28707100
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 :	Mangal Kalash, 2 A, Shakespeare Sarani, Kolkata – 700 071, 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.com investor-relati@ushamartin.com
Website :	http://www.ushamartin.india.com
Corporate Office :	2A, Shakespeare Sarani, Kolkata – 700 072, West Bengal, India
Tel. No.:	91-33-2282 8540 / 8541 / 8545 / 2248 3677
Fax No.:	91-33-2282 3866 / 2282 6498
E-Mail :	gdsaini@ushamartin.co.in r.jhawar@ubest.sprintrpg.ems.net.in kalyanc@ushamartin.co.in
Website :	http://www.ushamartin.india.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
Name :	Brij K Jhawar
Designation :	Director
Name :	Mr. Prashant Jhawar
Designation :	Vice Chairman
Name :	Mr. Rajeev Jhawar
Designation :	Managing Director
Name :	Dr. P. Bhattacharya
Designation :	Joint Managing Director
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. B K Jhawar
Designation		Chairman
Age		68 years
Qualification		Graduate
Date of Joining		Since Incorporation
Previous Employment		ICICI Limited - 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		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 :		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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of promoter and Promoter Group
India -	628708	1.32
Individual / HUF
Bodies Corporate	16440574	34.34
Foreign -
Bodies Corporate	3855227	8.05
Public shareholding
Institution -
Mutual Funds and UTI	7100873	14.83
Financial Institution / Banks	187774	0.39
Insurance Companies	2562266	5.35
Foreign Institutions Investors	9011801	18.83
Non Institutions
Bodies Corporate	2801340	5.85
i) Individual shareholders holding nominal share capital upto Rs. 0.100 millions	3835651	8.01
ii) Individual shareholders holdings nominal share capital in excess of Rs. 0.100 millions	94268	0.20
Shares held by Custodians and against which depository Receipts have been issued.	1354874	2.83

BUSINESS DETAILS

Line of Business :

Manufacturer of jelly filled telephone cables, wire and wire ropes and steel. Its operation are spread cover Ranchi, Jamshedpur, Agra and Bangalore

PRODUCTION STATUS as on 31.03.2006:

Particulars	Unit	Installed Capacity	Actual Production
Wire Drawing And Allied Machines
Wire Machines	Nos	50	25
Wire Rods	MT	228000	290035
Wire Ropes, Strands Including Locked Coil
Wire Ropes	MT	55000	63716
Wire	MT	41700	43998
Pig Iron /Hot Metal	MT	200000	195514
Billets	MT	360000	296192
Sponge Iron	MT	100000	46851
Hydralic Machines Including Presses. Proof Loading Machines Accessories	Pcs.	100	1
Blocks, Dies And Accessories	---	400	36
Ferrules, Slings, Fittings And Accessories Equipment And Materials For Prestressed Concrete System And Bargrip Seamless	Pcs.	700000	112637
Tubes For Splicing x	Pcs.	460000	1255672
Concrete System And Bargrip Seamless	Pcs.	--	43
Jelly Filled	--	---	---
Telecommunication
Cables	LCKM	64	0.02
Bright Bar	MT	12000	6519
Conveyor Cord	MT	840	787
House Wire	KM	1680	4

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
• Indusind 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 :

UNSECURED LOAN	31.03.2007	31.03.2006
Debentures	( Rs. in millions)
500000 9% Secured Redeemable Non –Convertible Debentures of Rs. 33.33 each (previous year Rs. 66.67 each) Above Debenture are redeemable on 14^th November, 2007	16.667	33.333
Term Loan From- Financial. Institutions – Foreign Currency Loan	0.000	0.071
Banks --
Rupee Loans	3525.683	3333.233
Foreign Currency Loans	2521.146	2535.748
Interest Free Sales Tax Loan from a State Government	95.165	144.747
Vehicle Loans from Banks	0.232	3.547
Working Capital Loans from
Financial Institutions	0.000	52.506
Foreign Currency Loan
Banks
Rupee loan	1282.505	480.312
Foreign Currency Loans	0.000	62.930
Total	7441.398	6646.427

UNSECUREDL OAN	31.03.2007	31.03.2006
	( Rs. in millions)
Fixed deposit [Repayable within one year Rs. 0.042 millions (previous year Rs. 0.105 millions]	0.051	0.157
Interest free Sales Tax loan from a State Financial Institution	0.496	0.992
Total	0.547	1.149

NOTES:

1. 9% Privately Placed Secured Redeemable Non-Convertible Debentures are secured by a Joint Mortgage by deposit of title deeds with Trustees for the Debenture holders in respect of certain immovable properties and by English Mortgage on certain immovable properties and hypothecation over movable assets of the Company (other than book debts) subject to prior charges of the Company's Bankers on specified movable assets for Working Capital requirements. Term Loans from 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 instalments 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, Banks and/or Trustees for Debentures created/to be created in respect of any existing/future financial assistance/accommodation which has been/may be obtained by the Company. Securities as mentioned in Note 1 and some of the Securities as mentioned in Notes 2 and 3 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

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
100000000	Equity shares	Rs. 5/- 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
47873356	Equity shares	Rs. 5/- each	Rs. 239.366 Millions
Add	Share forfeited		Rs. 0.678 Million-
	Total		Rs. 240.044 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		240.045	221.920	185.801
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6936.730	5605.048	4321.939
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7176.775	5826.968	4507.74
LOAN FUNDS
1] Secured Loans		7441.398	6717.748	7661.952
2] Unsecured Loans		52.340	158.367	597.349
TOTAL BORROWING		7493.738	6876.115	8259.301
DEFERRED TAX LIABILITIES		1434.331	1335.064	1076.817
EQUITY WARRANTS		33.278	88.740	0.000
TOTAL		16138.122	14126.887	13843.858
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9000.079	8847.172	8501.988
Capital work-in-progress		1970.586	695.615	435.770
INVESTMENT		1600.805	1525.755	1395.403
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3390.551	2621.667	2840.534
	Sundry Debtors	2269.104	1982.492	2513.970
	Cash & Bank Balances	370.805	517.489	389.655
	Other Current Assets	260.942	225.640	195.738
	Loans & Advances	2119.931	1648.665	2100.403
Total Current Assets		8411.333	6995.953	8040.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4612.543	3769.487	4413.061
	Provisions	262.565	210.109	176.380
Total Current Liabilities		4875.108	3979.596	4589.441
Net Current Assets		3536.225	3016.357	3450.859
MISCELLANEOUS EXPENSES		30.427	41.988	59.838
TOTAL		16138.122	14126.887	13843.858

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		14086.047	12317.878	11908.518
Other Income		143.261	94.846	0.000
Total Income		14229.308	12412.724	11908.518
Profit/(Loss) Before Tax		1383.960	1007.385	582.759
Provision for Taxation		369.200	357.744	174.025
Profit/(Loss) After Tax		1014.760	649.641	408.734
Export value		3657.376	3279.154	NA
Import Value		2368.032	2024.589	2.137
Expenditures :
	Raw Material Consumed	5816.061	5250.697
	Purchases of general Merchandises	15.302	9.616
	Increase/(Decrease) in Finished Goods	[238.579]	[155.097]
	Manufacturing, Selling and Administrative expenses	5801.012	4850.660	11325.759
	Interest	762.804	730.996
	Depreciation & Amortization	762.804	760.996
	Other Expenditure	0.000	0.000
Total Expenditure		12895.136	11405.732	11325.759

QUARTERLY RESULTS

Year	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	3709.800	3892.000	4026.500
Other Income	59.600	16.300	16.500
Total Income	3769.400	3908.300	4043.000
Total Expenditure	2934.300	3049.500	3232.900
Operating Profit	835.100	858.800	810.100
Interest	175.300	192.400	196.300
Gross Profit	659.800	666.400	613.800
Depreciation	184.600	184.100	193.600
Tax	175.600	123.700	95.700
Reported PAT	322.200	358.600	324.500

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	1.11	1.46	1.94
Long Term Debt-Equity Ratio	0.96	1.26	1.58
Current Ratio	1.13	1.14	1.13
Fixed Assets	1.02	0.93	0.95
Inventory	5.20	4.89	4.89
Debtors	7.36	5.95	5.83
Interest Cover Ratio	2.79	2.22	1.69
Operating Profit Margin (%)	18.67	19.39	16.96
Profit Before Interest And Tax Margin (%)	13.79	13.70	11.35
Cash Profit Margin (%)	11.36	10.55	8.87
Adjusted Net Profit Margin (%)	6.49	4.86	3.26
Return On Capital Employed (%)	15.81	14.44	11.08
Return On Net Worth (%)	15.61	12.57	9.30

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORTS:

Dividend

The Board of Directors recommends a dividend at the rate of 75% per cent on the equity shares of the Company for the year ended 31st March 2007 amounting to Rs. 219.600 millions. Including dividend tax, surcharge and cess @ 16.995%. All the existing equity shares, including 58,00,000 shares issued on conversion of warrants in terms of shareholders approval, will be eligible for such dividend.

Review of Operations

During the year under review, the Company achieved net turnover of Rs.14086.000 millions. As against Rs. 12317.900 millions. In the previous year, higher by 14.4%. The gross sales before adjusting inter divisional sales was Rs. 20366.500 millions, registering a growth of 15.7% over the previous year.

The Company has achieved profit before tax of Rs.1384.000 millions. As against Rs.TOO.740.000 millions. Higher by 37.4% and net profit of Rs.1014.800 millions, as against Rs. 649.700 millions. in the previous year, higher by 56.2%. The collective turnover of the subsidiaries (without inter company/division sales) stood at Rs. 923.700 millions. Which is higher by 8.3% over the previous year. The consolidated net turnover (net of excise duty and inter company/division sales) increased 9.2% to Rs. 19647.100 millions. The consolidated profit before tax and profit after tax moved up by 43.3% and 62.5% to Rs. 1829.200 millions and Rs.1377.800 millions respectively.

Subsidiaries

The wire rope manufacturing plant being set up by Brunton Shaw Americas Inc., a subsidiary jointly promoted by the Company along with Usha Martin International Limited is under implementation and is expected to commence production in the first quarter of financial year 2007-08. The commissioning activity has started from early May 07. The Statement required under Section 212 of the Companies Act, 1956 in respect of subsidiaries of the Company is annexed to this Report. The Company has, vide letter No. 47/205/2007-CL-lli dated 10th May, 2007, received approval from Ministry of Company Affairs, Government of India for exemption from annexing the accounts and other documents pertaining to the subsidiaries, under Section 212(8) of the Companies Act, 1956. U M Cables Limited., the only Indian subsidiary company, an unlisted one, is not a material subsidiary (in terms of Clause 49 of the Listing Agreement) requiring appointment of an independent director of the

Company, as director of this Company.

Business Outlook

The Company is positive on business outlook in the coming years. With the completion of expansion of Speciality Steel production and value added products, and with full integration with Captive iron ore, coal and power in next 2 years, the Company expects rapid growth in financial performance in coming years. The Company has achieved meaningful results from its overseas investments and it is planning to strengthen its manufacturing, distribution and service network globally particularly in Europe, USA and South East Asia.

Steel Business

The Steel business accounts for 56.9% of gross activity level of the Company and 45.0% of reported turnover. This business as a whole achieved a turnover of Rs. 10102.700 millions. In the year under review, as against Rs. 8978.200 millions. in the previous year, higher by 12.5%, due to volume growth.

Usha Alloys and Steel Division (UASD) have recorded a turnover of Rs. 9692.000 millions, against Rs. 8978.200 millions in the previous year, higher by 7.9%. However, the reduced gross profit margin from 21.4% in the previous year to 9.2%, in the year under review, was on account of lower export gains and higher cost of alloys and fluxes even after neutralising gains of captive iron ore supplies. Steel sector has witnessed softer prices of finished products in first half of the year bur the trend reversed by end of the year. The export turnover of steel business remained at Rs. 1022.800 millions. in the year under review against Rs. 1010.400 millions., with marginally higher growth of 1.2%. The lower growth was on account of meeting requirements of domestic customers and for higher captive value addition products.

The year under review, inter divisional transfers for captive use has gone upto Rs. 3977.300 millions against Rs. 3282.500 millions, showing an increase of 21.1%. After commencement of iron ore mining in the previous year, the Company has stabilised and could attain allotted capacity, in steel business, the Company has gradually achieved o fair level of integration with iron ore mining activities by increasing use of its own iron ore. The Company hopes to increase captive use to yet higher levels during the current year. The Company has also

applied for enhancement of iron ore mining capacity.

The coal mining activities are likely to commence by 4^th quarter of current financial year. For growth of steel business, the Company has undertaken capex programme to set up 2nd Mini Blast Furnace, Blooming Mill, 30 MW Captive Power Plant, 3^rd Steel Melt Shop including Electric Arc Furnace, Ladle Furnace and Vacuum Degassing, Bioom Caster, two DRI plants with related auxiliaries and utility facilities. The implementation of these projects is progressing satisfactorily.

The year under review, the Company has also taken over a steel rolling plant in Agra, with an annual capacity for manufacturing 72000 tonnes of construction steel. This division, named as Construction Steel Division, achieved a turnover of Rs. 410.800 millions. Since acquisition in December 06. The gross profit margin was 4.0% during this period. This plant is expected to help the Company to cater to growing market for construction steel sector in north India.

Wire Ropes and Speciality Products Business

The Wire Ropes and Speciality Products business accounted for 42.6% of gross activity level and 54.3% of reported turnover of the Company. This business achieved turnover of Rs. 7854.200 millions. As against Rs. 6573.700 millions. in the previous year, registering a growth of 1 9.5% over the previous year. The gross profit margin improved to 14.3% from 13.2%. The export turnover of this business has grown by 14.5% to Rs. 2680.300 millions. During the year under review as against Rs. 2341.400 millions. in the previous year. During the year under review, Wire Rope and Speciality Product Divison at Rafchi and North Division at Hoshiarpur have: a) developed! dolphin brand fishing ropes with enhanced performance, which has been well received by fishing industry, b) improved performance of plastic valley filled mining ropes to 1 200 hrs from level of 350 hrs, c) developed copper coated bailing wire to replace conventional galvanised wire, and d) developed copper coated crimping wire for export market,

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 and Speciality Product Division at Ranchi is gearing itself for audit and accredition of TPM phase II award.

Cable Business

The cable business under UM Cables Limited, a wholly owned Indian subsidiary of the Company, achieved a gross turnover of Rs. 1814.600 millions against Rs. 2123.800 millions in the previous year. Profit before tax reduced to Rs. 27.200 millions. From Rs. 51.200 millions in the previous year. Inspite of this company now being the largest producer of jelly filled telephone cables in India, the reduced level of performance is on account of lower demand of telecommunication cables partly on the back of continuing higher prices of copper. However, this company has achieved growth of 90.1 % in exports at Rs. 423.800 millions, which accounted for 23.4% of turnover as against 10.5% in the previous year. This company is now the most significant exporters of telecommunication cables. 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 15.9% to Rs. 7422.800 millions in the year under review from Rs. 6402.400 millions in the previous year. The international business accounted for 27.3% 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 Usha Martin UK Limited. (a wholly owned subsidiary of UMIL), which has facilities ranging from manufacturing, distribution and providing end use solutions to off shore oil and gas sector. Consolidated turnover of UMIL, during the year, was GBP 36.0 Mn. against GBP 37.3 Mn. in the previous year. The marginally lower reported turnover is due to net effect of loss of turnover on account of sale of its' subsidiary namely Usha Martin Scandinavia A/S (UMScan) in February 2006 and regrouping of some of other subsidiaries with the Company. UMIL reported consolidated net profit of GBP 1.6 Mn. against GBP 2.7 Mn. (which included extra ordinary income of GBP 2.2 Mn. on sale of UMScan) in the previous year.

Brunton Shaw Americas Inc (BSAI):

BSAI set up as wholly owned subsidiary of the Company, jointly with UMIL, is putting up wire rope manufacturing facilities in United States of America. BSAI is expected to commence production in the first quarter of current financial year.

Usha Martin Americas Inc (UMAI):

During the year under review, UMAI, a wholly owned subsidiary of the Company, achieved a turnover and profit after tax of US $ 22.2 Mn. and US $ 1.0 Mn. Against US $ 20.3 Mn. and US $ 0.4 Mn in the previous year, registering growth of 9.5% and 160.4% respectively.

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.

Wire and Wire Rope Division

The ISO 9001-certified 100,000 MT / annum manufacturing facilities at Ranchi (Eastern India) are amongst the top four wire rope producers in the world. Since its inception, the division has continuously developed and expanded its range of product offerings and is considered a pioneer in certain classes of products in India. Steel wire ropes manufactured by the division find wide applications in oil exploration, mining, elevators, Crane, fishing, construction, load transportation and general engineering sectors.

Steel Division

A backward integration initiative, the Usha Alloys and Steels Division (UASD) at Jamshedpur is one of the largest amongst secondary steel manufacturers of speciality steel long products in India. With ISO 9002 certified facilities, UASD has pioneered the unique process of steel making through mini blast furnace-arc furnace route which ensures superior quality of steel at a lower cost. UASD serves a range of industries like automobile, general engineering, fasteners, railways, defence and power.

Apart from these, the Group has three other divisions.

Machinery Division

This ISO 9001 unit located at Bangalore was set up in 1974 to manufacture Wire Drawing and allied machines. Over the years, the division has added a wide range of Wire, Wire Rope and Cable machinery to its product range and is now the leader in this field in India. The division started with technical collaboration with M/s Marshall Richards Barcro of UK and subsequently has collaborated with internationally reputed firms like De-Angeli Industries SPA, Italy, Stolberger Maschinenfabrik, Germany, Hi-Draw Machinery Limited, UK and Redaelli Techna Meccanica, Italy. A faciltity in ranchi has also been created for manufacturing machines required for Wire Drawing and Stranding Applications.

Usha Ismal Division

This unit, having manufacturing unit in Ranchi (Eastern India), is the leader in the field of pre-stressing equipment & accessories and also executes pre-stressing job on turnkey basis. Besides, it provides services for jointing of reinforcement bars by mechanical splicing. All major civil contractors of National Highway Authority of India, Indian Railways, and PWD are regular users of these products and services.

It also offers hydraulic presses & accessories for manufacturing mechanically spliced wire rope slings, machines for proof load testing of wire rope slings, and die-less hand operated hydraulic crimping tools. These products find wide application with Steel Plants, Port Trusts, Oil Sector, Heavy Engineering Industry, Electricity Boards, Electrical Contractors, and Factories etc...

Cables Division Under UM Cables (A Subsidiary of Usha Martin Ltd)

The Cable Division of subject has emerged as a leading manufacturer of jelly-filled underground telecommunication cables in India. The sophisticated manufacturing facilities, which went on stream in 1988, are located in a 24 acre complex at Tatisilwai, near Ranchi in the state of Jharkhand in India. The company integrates technology from KABEL RHEYDT (formerly AEG KABLE), GERMANY, a member of Alcatel Group - is rated as one of the most efficient plants in the country and a benchmark in the industry. The 6.5 Mn Conductor Kilometer Plant includes computer - controlled critical equipments, imported from International Leaders in cable technology. State-of-the-art equipments combined with technical expertise produce International Quality Jelly Filled Telecommunication Cables.

FIXED ASSETS

• Land and Site Development
• Freehold
• Leasehold
• Buildings
• Plans and Machinery
• Electrical Installation
• 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 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.40.45
UK Pound	1	Rs.81.20
Euro	1	Rs.63.48

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/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions