MIRA INFORM REPORT

Report Date :

16.08.2011

IDENTIFICATION DETAILS

Name :	JINDAL STAINLESS STEELWAY LIMITED
Registered Office :	Jindal Centre – 12, Bhikaji Cama Place, New Delhi – 110066
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.08.2004
Com. Reg. No.:	55-128146
Capital Investment / Paid-up Capital :	Rs.171.669 Millions
CIN No.: [Company Identification No.]	U27109DL2004PLC128146
TAN No.: [Tax Deduction & Collection Account No.]	DELJ05303E
PAN No.: [Permanent Account No.]	AABCJ4346C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel Products
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2690144
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of Jindal Group. It is a well established and a reputed company with satisfactory track. Trade relations are fair. Business is active. Payments are reported as being usually correct. Company can be considered good for normal business dealings under usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Jindal Centre – 12, Bhikaji Cama Place, New Delhi – 110066, India
Tel. No.:	91-11-26188345
Fax No.:	91-11-26161271
E-Mail :	sharvan.bansal@jindalsteelway.com skbansal@pioj.jindalsteel.com
Factory :	9-10 KM, Stone Village and P O Pathreri Bilaspur, Gurgaon – 123413, Haryana, India
Tel. No.:	91-124-5127700
Fax No.:	91-124-5127777

DIRECTORS

AS ON 16.08.2010

Name :	Mrs. Shanti Swaroop Saxena
Designation :	Director
Address :	H – 92/6, Shivaji Park, Punjabi Bagh West, New Delhi – 110026, India
Date of Birth/Age :	03.07.1948
Date of Appointment :	06.08.2004
Date of Ceasing :	03.11.2007
Name :	Mr. Budh Prakash Goyal
Designation :	Director
Address :	338, Pocket – A, Sarita Vihar, New Delhi, Delhi, India
Date of Birth/Age :	11.06.1941
Date of Appointment :	27.09.2004
Date of Ceasing :	05.01.2006
Name :	Mr. Mahendra Malu
Designation :	Director
Address :	Flat No.9, Utkarsh Apartment, 2, Rajnarain Marg, Civil Line, New Delhi – 110054, Delhi, India
Date of Birth/Age :	15.06.1947
Date of Appointment :	06.08.2004
Date of Ceasing :	26.10.2004
Name :	Mr. Arvind Parikh
Designation :	Director
Address :	C-6/59A, Safdarjung Dev Area, Opp IIT Gate, New Delhi – 110016, Delhi, India
Date of Birth/Age :	08.02.1957
Date of Appointment :	06.08.2004
Date of Ceasing :	26.10.2004
Name :	Mr. Aiyush Bhuwalka
Designation :	Director
Address :	11 B – 2, Prithvi Apartment, 21 Altamount Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	09.09.1980
Date of Appointment :	27.09.2004
Date of Ceasing :	05.04.2004
Name :	Mr. Subash Singh Virdi
Designation :	Director
Address :	F – 17, Lajpat Nagar, 111, New Delhi – 110024, India
Date of Birth/Age :	17.01.1962
Date of Appointment :	04.03.2005
Name :	Mr. Rajiv Rajvashi
Designation :	Director
Address :	B – 25 m Kailash Apartment, New Delhi – 110048, India
Date of Birth/Age :	15.05.1964
Date of Appointment :	04.03.2005
Date of Ceasing :	05.04.2010
Name :	Mr. Maurizio Tamborin
Designation :	Director
Address :	City Vicenza Road, Via Cengio 39, Postal Code I – 36100, Italy
Date of Birth/Age :	28.06.1952
Date of Appointment :	13.07.2005
Name :	Mr. Ankur Agarwal
Designation :	Director
Address :	Flat No.61, Mansarover Apartment, Sector – 61, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	14.03.1977
Date of Appointment :	18.08.2008
Date of Ceasing :	05.04.2010
Name :	Mr. Kapil Mahindra
Designation :	Director
Address :	506 OKT – 6, Sector – 61, Rohini, New Delhi – 110085, India
Date of Birth/Age :	18.08.1972
Date of Appointment :	03.03.2008
Date of Ceasing :	31.03.2010
Name :	Mr. Subrata Bhattacharya
Designation :	Director
Address :	506 PKT-6, Sector-61, Rohini, New Delhi – 110085, Delhi, India
Date of Birth/Age :	20.10.1961
Date of Appointment :	05.04.2010
Name :	Mr. Ravindra Kumar Goyal
Designation :	Director
Address :	Kothi No.1, Old Staff Colony, Jindal Strips Limited, Delhi Road, Hissar – 125005, Haryana, India
Date of Birth/Age :	18.05.1958
Date of Appointment :	05.04.2010
Name :	Mr. Rajesh Kumar Ravinkant Modi
Designation :	Director
Address :	A/51, Krishna Valley, Bunglow Opp Amit Nagar, Char Rasta Sama Sa Vli Road Kareli Baug, Vadodara – 390018, Gujarat, India
Date of Birth/Age :	04.03.1971
Date of Appointment :	05.04.2010

KEY EXECUTIVES

Name :	Mr. Sharvan Kumar Bansal
Designation :	Company Secretary
Address :	House No.269, Sector – 39, Gurgaon – 122016, Haryana, India
Date of Birth/Age :	04.04.1974
Date of Appointment :	01.04.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 16.08.2010

Names of Shareholders	No. of Shares
Ravindra Kumar Goyal	100
Shanti Saxena	100
Rajiv Rajvanshi	100
Dilip Banthiya	100
JSL Stainless Limited, Delhi	1406106
L G Italia SRI, Italy	3105257
Sunil Mittal	100
Vashisth Ved	100
Total	4511963

AS ON 16.08.2010

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	18.09
Bodies corporate	81.91
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Products

Products :

Products Description	Item code No.
Slitting/ Cutting and Polishing of SS Sheets and Coils	72

PRODUCTION STATUS AS ON

Particulars	Unit	Installed Capacity	Actual Production
RK Colls Sheets and Cold Rolled Stn	MT	255000	138435

NOTE:

1. The above production also Includes coods manufactured for outside parties on fob work basis as follows:

Particulars	Unit	Installed Capacity	Actual Production
RK Colls Sheets and Cold Rolled Strips	MT	111772	71180

2. Licensed capacity is not applicable in view of the Company's production having been delieonsod as per the Liberalised Licensing Policy announced by the Government of India.

3. Installed capacity is as certified by the management.

GENERAL INFORMATION

Bankers :

· State Bank of Patiala, SME Branch, New Railway Road, Gurgaon – 122001, Haryana, India

· State Bank of India (Formerly State Bank Of Indore Merged With Sbi), Cag Branch, 12^th Floor, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi - 110001, Delhi, India

· Axis Bank Limited., 4/10, Opp House, Asaf Ali Road, New Delhi - 110002, Delhi, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
A. Term Loan - From Bank	393.569	437.858
B. Working Capital Loan - From Banks	553.981	1.216
Total	71.797	43.446
Note: Terms Loan secured by way of mortgage of company’s immovable properties and hypothecation of movable assets Working Capital Loan from banks are secured by way of hypothecation of finished good, raw materials work in progress, stores and spares and Book Debts of the company.

Banking Relations :	--
Auditors :
Name :	N C Aggarwal and Company (Mr. Gautam Kumar Agarwal) Chartered Accountant
Address :	102, Harsha House, Karampura Commercial Complex, New Delhi – 110015, India
Tel. No.:	91-11-25920555/ 56/ 25410561
Email :	nc.a@rediffmail.com ncaggarwal@gmail.com
Holding Company :	JSL Stainless Limited CIN No.: L26922HR1980PLC010901
Fellow Subsidiaries Companies:	· PT Jindal Stainless Indonesia · Jindal Architecture Limited · Austenitic Creations Private Limited · Jindal Stainless UK Limited · Jindal Stainless FZE · Jindal Stainless S.r.l. Italy. · Green Delhi BQS Ltd · Parivartan city Infrastructure Limited · Jindal stainless Madencilik Sanayi Ve Ticaret A.S Turkey · JSL Group Holdings Pte. Limited., Singapore · JSL Ventures Pte. Ltd., Singapore · JSL Europe S.A., Switzerland · JSL Minerals & Metals S.A., Switzerland · Jindal Aceros Inoxidables S. L. Spain · JSL Logistics Limited · Iberjindal S.L. Spain
Associates :	J.S.S. Steelitalia Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17166924	Equity Shares	Rs.10/- each	Rs.171.669 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		171.669	171.669	171.669
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		500.867	346.325	273.207
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		672.536	517.994	444.876
LOAN FUNDS
1] Secured Loans		947.550	751.061	548.044
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		947.550	751.061	548.044
DEFERRED TAX LIABILITIES		71.797	43.446	35.458
TOTAL		1691.883	1312.501	1028.378
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		867.558	598.615	589.877
Capital work-in-progress		7.092	253.624	0.542
INVESTMENT		97.131	61.994	23.274
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	591.491	204.482	244.421
	Sundry Debtors	518.850	337.389	294.403
	Cash & Bank Balances	41.996	45.890	72.121
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	264.324	140.789	128.139
Total Current Assets		1416.661	728.550	739.084
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	75.250	64.170	290.783
	Other Current Liabilities	501.418	119.645
	Provisions	120.116	67.125	34.706
Total Current Liabilities		696.784	330.940	325.489
Net Current Assets		719.878	397.611	413.595
MISCELLANEOUS EXPENSES		0.224	0.657	1.090
TOTAL		1691.883	1312.501	1028.378

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	5097.080	2577.774	1759.307
		Other Income	8.386	5.354	1.000
		TOTAL (A)	5105.466	2583.128	1760.307
Less	EXPENSES
		Raw Material Consumed	2963.418	1223.683	938.886
		Goods Purchase for Sale	1644.897	1022.884	604.159
		Manufacturing Expenses	84.571	29.574	25.169
		Payments to and Previous for Employees	56.182	49.360	34.808
		Selling Expenses	8.484	3.686	4.191
		Administrative and Other Expenses	23.305	18.361	11.931
		Increased / (Decreased) In Stock	(84.910)	17.505	(25.857)
		Excise Duty on Increased / (Decreased) of Finished Goods	12.053	(4.071)	(5.581)
		TOTAL (B)	4708.000	2360.982	1587.706
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		397.466	222.146	172.601
Less	FINANCIAL EXPENSES (D)		110.847	74.441	49.680
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		286.619	147.705	122.921
Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.994	35.598	26.760
	PROFIT BEFORE TAX (E-F) (G)		234.625	112.107	96.161
Less	TAX (I)		80.083	38.989	33.316
	PROFIT AFTER TAX (G-I) (J)		154.542	73.118	62.845
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		102.867	79.749	59.404
Less	APPROPRIATIONS
		Transfer to General Reserve	100.000	50.000	42.500
	BALANCE CARRIED TO THE B/S		157.410	102.867	79.749
	IMPORTS
		Raw Materials	6.725	0.000	10.020
		Stores & Spares	7.757	19.246	0.467
		Capital Goods	7.739	134.014	121.734
	TOTAL IMPORTS		22.221	153.260	132.221
	Earnings Per Share (Rs.)		9.00	4.26	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.03	2.83	3.57
Net Profit Margin (PBT/Sales)	(%)	4.60	4.35	5.47
Return on Total Assets (PBT/Total Assets}	(%)	10.27	8.45	7.24
Return on Investment (ROI) (PBT/Networth)		0.35	0.22	0.22
Debt Equity Ratio (Total Liability/Networth)		2.44	2.09	1.96
Current Ratio (Current Asset/Current Liability)		2.03	2.20	2.27

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U27109DL2004PLC128146
Name of the company	JINDAL STAINLESS STEELWAY LIMITED
Address of the registered office or of the principal place of business in India of the company	Jindal Centre – 12, Bhikaji Cama Place, New Delhi – 110066, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	State Bank of Patiala SME Branch, New Railway Road, Gurgaon – 122001, Haryana, India Sharvan.bansal@jindalsteelway.com
Nature of instrument creating charge	Memorandum of Entry
Date of instrument Creating the charge	29.11.2008
Amount secured by the charge	Rs.224.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Rate of Interests @ 1.75% below BPLR present Effective rate 12.25% p.a. (Floating) at monthly rests with reset after every 2 years. Terms of Repayment: Repayable in 57 Monthly Installment w.e.f. September 2010. 1^st 55 Installment of Rs.3.941 Millions each Last 2 Installment of Rs.3.939 Millions each Margin: Margin - 33.33% Extent and Operation of the charge: Pari Passu Charge

Corporate identity number of the company	U27109DL2004PLC128146
Name of the company	JINDAL STAINLESS STEELWAY LIMITED
Address of the registered office or of the principal place of business in India of the company	Jindal Centre – 12, Bhikaji Cama Place, New Delhi – 110066, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others
Particular of charge holder	STATE BANK OF PATIALA
Nature of instrument creating charge	Hypothecation Agreement For Goods And Assets
Date of instrument Creating the charge	25/06/2011
Amount secured by the charge	Rs.220.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest @ 3.25% Above The Base Rate, Present Effective Rate Being 12.25% P.A. (Floating) With Reset After 2 (Two) Years Terms of Repayment The Term Loan-Ii Will Be Repayable After 5.5 Years (Including Moratorium Period of 1.5 Years) In 48 Monthly Installments of Rs. 4.583 Millions Each (47 Installments of Rs. 4.583 Millions And The 48th Installment Will Be of Rs. 4.599 Millions) Interest Will Be Served As And When Due. Margin 34.81% of The Cost of Proposed Project. It Would Be Insured That The Margin % Does Not Fall Below The Stipulated Level At Any Given Point of Time. Extent and Operation of the charge Pari Passu Charge
Short particulars of the property charged	Pari-Passu First Charge on Entire Fixed Assets of The Company Present And Future Excluding Fixed Assets Of The Hisar Unit Where The Sbi Has Exclusive Charge. Second Charge on Pari-Passu Basis on Entire Current Assets of The Company Present And Future.

FIXED ASSETS:

• Freehold Land
• Leasehold Land
• Admistrative Office Building
• Factory Shed and Building
• Roads
• Boundry
• Office Equipment
• Plant and Machinery
• Computers
• Vehicles
• Furniture and Fixture
• Intangible Assets

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.45.37
UK Pound	1	Rs.73.53
Euro	1	Rs.64.36

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.