MIRA INFORM REPORT

Report Date :

13.12.2011

IDENTIFICATION DETAILS

Name :	JINDAL STAINLESS LIMITED (w.e.f. 07.12.2011)
Formerly Known As :	JSL STAINLESS LIMITED (w.e.f. 06.08.2010) JSL LIMITED
Registered Office :	O. P. Jindal Marg, Hisar – 125 005, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.09.1980
Com. Reg. No.:	55-10901
Capital Investment / Paid-up Capital :	Rs.374.632 millions
CIN No.: [Company Identification No.]	L26922HR1980PLC010901
TAN No.: [Tax Deduction & Collection Account No.]	RTKJ01831E RTKJ01408B
PAN No.: [Permanent Account No.]	AABCJ1969M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Stainless Steel.
No. of Employees :	54184 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 10200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Jindal Group Company. It is a well established and a reputed company having good track. Financial position of the company appears to sound. Directors are reported to be experiences and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	O. P. Jindal Marg, Hisar – 125 005, Haryana, India
Tel. No.:	91-1662-222471- 485 (15 Lines)
Fax No.:	91-1662-220476 / 220499
E-Mail :	jslhsr@nde.vsnl.net.in hsr.harit@jslhsr.com jindalsp@del3.vsnl.net.in awards@jindalsteel.com ddspace@hanmall.net
Website :	http://www.jindalstainless.com
Corporate Office :	Jindal Centre, 12, Bhikaji Cama Place, New Delhi – 110 066, India
Tel. No.:	91-11-26188340-50
Fax No.:	91-11-26161271 / 26170691 / 41659169
E-Mail :	jindalsp@del3.vsnl.net.in info@jindalsteel.com
Factory 1 :	P. O. Box No. 6, O.P, Jindal Marg, Hisar – 125 005, Haryana, India
Tel. No.:	91-1662-220471-485 (15 Lines)
Fax No.:	91-1662-220476 / 220499
Factory 2 :	58-17-1/1, Sangeevaya Nagar, Near Nad Kotha Road Junction, Visakhapatnam – 530 009, India
Tel. No.:	91-891-2558898
Fax No.:	91-891-2558996
Factory 3 :	Kalinga Nagar Industrial Complex, P. O. Danagadi – 755026, District Jajpur, Odisha, India
Tel. No.:	91-672-6266001
Fax No.:	91-672-6266002
Factory 4 :	Kawasan Industry Maspion, Maspion Unit-V, Desa Sukomylyo-Manyar, Gresik 61151, Jawa Timur-Indonesia
Tel. No.:	62-31-3959565
Fax No.:	62-31-3959566
Factory 5 :	Jindal Nagar, Kothavalasa - 535183, District Vizianagaram, Andhra Pradesh, India
Tel. No.:	91-8966-273327/273254/273335
Fax No.:	91-8966-273326
E-mail :	jindalkvs@sancharnet.in
Branches :	· Jindal Mansion, 5-A, G. Deshmukh Marg, Mumbai – 400 026, Maharashtra, India Tel. No.: 91- 22-4963000 / 4924470 - 74 Fax No.: 91-22- 4961400 E-Mail : jindal@bom2.vsnl.net.in · 50, H. I. G, BBA, Jaidev Vihar, Bhubaneswar – 751013, Orissa, India Tel. No. : 91-674-2303560/2301846 Fax : 91-674-2303147 E-mail: jslbbs@sify.com

DIRECTORS

AS ON 31.03.2011

Name :	Mrs. Savitri Devi Jindal
Designation :	Chairperson
Name :	Mr. Ratan Jindal
Designation :	Vice-Chairman and Managing Director
Name :	Mr. Gautam Kanjilal
Designation :	Nominee Director of State Bank of India
Name :	Mr. Naveen Jindal
Designation :	Director
Name :	Mr. Arvind Parakh
Designation :	Director – Finance
Name :	Ms. Suman Jyoti Khaitan
Designation :	Director
Name :	Mr. T. S. Bhattacharya
Designation :	Director (Sales and Marketing)
Name :	Mr. S. S. Virdi
Designation :	Executive Director and Chief Operating Officer
Name :	Mr. Jurgen Hermann Fechter
Designation :	Director
Name :	Mr. James Alistair Kirkland Cochrane
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Jitendra Kumar
Designation :	Company Secretary
Name :	Mr. Sandeep Sikka
Designation :	Head (Corporate Finance)
Name :	Mr. R. Ganesh
Designation :	Sr. Vice President (Strategic Sourcing and Integrated Logistics)
Name :	Mr. Rajiv Rajvanshi
Designation :	Vice President (Corporate Human Resource and Legal)
Name :	Mr. S. K. Jain
Designation :	Head (Hisar Unit)
Name :	Mr. S. Bhattacharya
Designation :	Director (Operations - Hisar Unit)
Name :	Mr. R. K. Goyal
Designation :	Director (Strategy and Corporate Affairs)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	747815	0.44
Bodies Corporate	43141700	25.31
Sub Total	43889515	25.75
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	7426805	4.36
Bodies Corporate	23149710	13.58
Sub Total	30576515	17.94
Total shareholding of Promoter and Promoter Group (A)	74466030	43.69
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	15355820	9.01
Financial Institutions / Banks	288741	0.17
Insurance Companies	2426624	1.42
Foreign Institutional Investors	40693558	23.88
Any Others (Specify)	9997524	5.87
Foreign Bank	9997524	5.87
Sub Total	68762267	40.34
(2) Non-Institutions
Bodies Corporate	7929564	4.65
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	18438418	10.82
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	845124	0.50
Sub Total	27213106	15.97
Total Public shareholding (B)	95975373	56.31
Total (A)+(B)	170441403	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	16734984	-
(2) Public	869350	-
Sub Total	17604334	-
Total (A)+(B)+(C)	188045737	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stainless Steel.

Products :

Item Code No.	Product Description
72.19/72.20	S. S. Hot Rolled / Cold Rolled Strips and Sheets, Flats and Plates
72.02	Ferro Chrome

· Strip Mill/Tandem Mill

· Plate/Steckel Mill

· Steel Melting

· Cold Rolling Mill

· Cold Rolled Strips

· Cold Rolled Special Steel

· Oxygen Plant

· Oxygen Gas

· Argon Gas

· Industrial Machinery

· High Carbon Ferro Chrome

· Rolling Mill Plant

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Production
AT HISAR: 1. Strip Mill/Tandem Mill 2. Plate/Steckel Mill 3. Steel Melting 4. Cupro Nickle Melting 5. Cold Rolling Mill i) Cold Rolled Strips ii) Cold Rolled Special Steel iii) Coin Blanks 6. Oxygen Plant: i) Oxygen Gas ii) Argon Gas 7 Industrial Machinery AT VIZAG High Carbon Ferro Chrome AT ODISHA / MINES High Carbon Ferro Chrome Chrome Ore Concentrate Power Plant	MT MT MT MT MT MT MT M. Cum. M. Cum. Nos. MT MT MT MT	780000 720000 250000 6000 275000 25000 10000 55.00 1.50 209 40000 250000 96000 264 430000	130795 534152 1363 1367 198951 22286 1292 53018572 1494400 32836 178871

GENERAL INFORMATION

No. of Employees :

54184 (approximately)

Bankers :

· State Bank of India

· State Bank of Patiala

· Punjab National Bank

· Canara Bank

· Standard Chartered Bank

· ICICI Bank Limited

· Axis Bank Limited

· Bank of Baroda

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Redeemable Non-Convertible Debentures	2500.000	2500.000
Term Loans from Banks
Rupee Term Loans	39530.730	32359.259
Foreign Currency Loans	12368.008	13575.547
Buyer’s Credit in Foreign Currency
Against Capital Goods	13845.761	10695.039
Against Working Capital	8202.872	2756.959
Funded Interest Term Loans from Banks / FI	4731.081	2045.531
Car Loans From Banks	8.717	15.685
Working Capital Loans from Banks	2435.283	8912.254
Total	83622.452	72860.274
NOTES : A. Debentures are to be secured by first pari-passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed assets both present and future and second pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable Debenture of Rs. 1000000 each are redeemable in 28 equal quarterly installments starting from 1^st July, 2010 and ending on 1^st April, 2019 and coupon is proposed to be revised to 9.75%. Debentures are secured by pari passu charge by way of equitable mortgage on the company’s immovable properties located in state of Gujarat, Hisar, Vizag, Orissa, and hypothecation of movable assets in faour of debenture trustee ranking pari passu with other financial institutions/banks. B. Term Loan amounting to Rs. 39271.361 millions are to be secured by first pari passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed assets both present and future and first pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable. Term Loan amounting to Rs. 6663.445 millions are to be secured by second pari passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed asse5ts both present and future and second pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable. Term loans from Banks include loans of Rs.36206.305 millions, for which charge is created / to be created by way of mortgage of company’s immoveable properties and hypothecation of moveable assets both present and future ranking pari-passu with other Financial Institutions/Banks. Term loans from Banks include loans of Rs.3000.000 millions (Rs. Nil), for which charge is created/to be created by way of second residual charge on current assets and fixed assets of the company. Term loans from Banks include sub debts term loans of Rs.242.507 millions (Rs.102.789 millions) secured by way of second charge on all movable and immoveable fixed assets of the company ranking pari-passu with other Financial Institutions/ Banks. Term loans from Banks include loans of Rs.500.000 millions (Rs.500.000 millions) secured by way of residual charge (ranking subservient to first and second charge holders) over movable fixed assets of the company. Term Loans from Banks include loans of Rs.634.000 millions secured by residual charge by way of hypothecation of movable fixed assets of the company. C. funded interest term loans amounting to Rs. 2045.531 millions are to be secured by Second pari passu charge by way of mortgage of company’s immovable properties and hypothecation of movable fixed assets both present and future and second pari passu by way of hypothecation and \or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bills receivable D. Secured by way of hypothecation of vehicles purchased there under. E. Buyers Credit amounting to Rs. 13845.761 millions (Rs.10695.039 millions) are secured by first pari-passu charge by way of mortgage of Company’s immovable properties and hypothecation of movable fixed assets both present and future and second pari-passu charge by way of hypothecation and/or pledge of current assets namely finished goods, raw materials, work-in-progress, consumable stores and spares, book debts, bills receivable. Buyers Credit amounting to Rs. 8202.872 millions (Rs.2756.959 millions) are secured by way of hypothecation and/or pledge of current assets namely finished goods, raw materials, work in progress, consumable stores and spares, book debts, bill receivable and by way of second charge in respect of other movable and immovable properties of the Company F. Working capital loans are secured by way of hypothecation and/or pledge of current assets namely finished goods, raw-materials, work-in-progress, consumable stores and spares, book debts, bills receivable and by way of second charge in respect of other moveable and immoveable properties of the company ranking pari-passu with other Banks/Financial Institutions.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
0.50% Foreign Currency Convertible Bonds (including Premium)	459.380	1403.140
Fixed Deposits	827.407	1020.858
Rupee Term Loans from Banks	0.000	0.000
Security Deposits from Agents/ Dealers / Other	106.048	164.936
Total	1392.836	2588.934
Note: @ 1 Foreign Currency Convertible Bonds (FCCB) originally issued to the Foreign investors on 24th December, 2004 with 0.50% coupon rate, amounting to USD 60 million, out of which USD 24.05 million were outstanding as on 31st March 2010. In terms of the Agreement executed with Trustee for Bondholders on 6th December 2010 for restructuring of FCCB, the Company has paid accrued YTM amounting to USD 7.20 million, outstanding as on 31st March, 2010, from 23rd December 2004 to 24th December 2009 to all outstanding USD 24.05 million FCCB holders. 2 Pursuant to the terms of FCCB restructuring, the FCCBs amounting to USD 9.0 million were redeemed by the Company and balance remaining USD 15.05 million FCCBs were restructured with zero coupon. Unless previously redeemed, repurchased and cancelled, or converted, the Bonds are redeemable at 176.28% of their principal amount on 24th December 2019. These Bonds at the option of the holder, may be converted into Equity Shares of face value of Rs. 2/- each, at a pre-determined price of Rs.119.872 per share. These FCCBs would now be termed as “Convertible Bonds due December 24, 2019”. Further, post FCCB restructuring, the Company has received conversion notice for 950 FCCBs amounting to USD 4.75 million and subsequently the company has allotted 17,33,620 fully paid equity shares on 7th January, 2011. Thus, the outstanding FCCBs as on 31st March, 2011 were USD 10.30 million.

Banking Relations :	--
Auditors :
Name :	· S. S. Kothari Mehta and Company Chartered Accountants · Lodha and Company Chartered Accountants
Cost Auditors :	Ramanath Iyer and Company Cost Accountants
Associates :	· J.S.S. Steelitalia Limited
Subsidiaries :	Jindal Stainless Steelway Limited JSL Lifestyle Limited JSL Architecture Limited Green Delhi BQS Limited JSL Media Limited JSL Logistics Limited Jindal Stainless UK Limited Jindal Stainless FZE, Dubai PT Jindal Stainless Indonesia Jindal Stainless Italy S.r.l. Jindal Stainless Madencilik Sanayi VE Ticaret A.S., Turkey JSL Group Holdings Pte. Limited, Singapore JSL Ventures Pte. Limited, Singapore JSL Europe S.A., Switzerland JSL Minerals and Metals S.A., Switzerland Jindal Aceros Inoxidables S. L., Spain Iberjindal S.L.
Joint Venture :	· MJSJ Coal Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
475000000	Equity Shares	Rs.2/- each	Rs.950.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
187315792	Equity Shares	Rs.2/- each	Rs.374.632 millions

Of the above

A) 13,778,717 Equity Shares of Rs 10/-each fully paid up issued to Shareholders of Jindal Strips Limited pursuant to Scheme of Arrangement and Demerger.

B) One Equity Share of Rs.10/-each fully paid up issued to Shareholders of J - Inox Creations (Private) Limited And Austenitic Creations (Private) Limited pursuant to the Scheme of Amalgamation.

C) 5,153,293 Fully Paid Up Bonus Equity Shares of Rs.10/- each in the ratio of 253 Equity Shares of Rs.10/- each for every 679 Equity Shares of Rs.10/- each, alloted out of Share Premium and Capital Redemption Reserve to the equity shareholders of the company pursuant to Scheme of Arrangement and Demerger.

D) 999,752 Equity Shares of Rs.10/- each fully paid up allotted to the holders of 460 Foreign Currency Convertible Bonds of US$ 5000/- each at predetermined (as per scheme ) conversion rate of Rs.100/- each on 13.01.2004.

E) Company has subdivided the Equity Shares of Rs.10/- each into Equity Shares of Rs.2/- each on 10.03.2004.

F) 9,997,524 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 920 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 20/- each on 24.12.2004.

G) 16,734,984 and 869,350 (represented by 8,367,492 nos. and 434,675 nos. GDS) Equity shares of Rs. 2/- each fully paid up have been allotted to the holders of 1540 and 80 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 20/- each during the years ended on 31.03.2006 and 31.03.2007 respectively.

H) 3,907,028 Equity Shares of Rs. 2/- each fully paid up allotted to the holders of 2141 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs.119.872 each during the year ended on 31.03.2006.

I) 6,800,000 and 7,150,000 and 7,550,000 Equity shares of Rs. 2/- each fully paid up have been allotted to the holders of equity share warrants at predetermined conversion rate of Rs. 103/- each during the years ended on 31.03.2007 and 31.03.2008 and 31.03.2009 respectively.

J) 23,447,240 Equity Shares of Rs.2/- each fully paid up allotted to the Qualified Institutional Buyers at Rs. 105.50 each during the year ended on 31.03.2010.

K) 1,733,620 Equity Shares of Rs.2/- each fully paid up allotted to the holders of 950 Foreign Currency Convertible Bonds of US $ 5000/- each at predetermined (as per scheme) conversion rate of Rs. 119.872 each during the year ended on 31.03.2011.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		374.632	371.164	324.270
2] Equity Share Warrants		0.000	0.000	0.000
3] Reserves & Surplus		22151.309	18764.754	12579.054
4] (Accumulated Losses)		0.000	0.000	0.000
5] Employees Stock Option Outstanding		22.195	0.000
NETWORTH		22548.136	19135.918	12903.324
LOAN FUNDS
1] Secured Loans		83622.452	72860.274	51795.735
2] Unsecured Loans		1392.836	2588.934	4775.706
TOTAL BORROWING		85015.288	75449.208	56571.441
DEFERRED TAX LIABILITIES		4444.667	3909.777	1991.433
TOTAL		112008.091	98494.903	71466.198
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41624.107	39031.855	39554.969
Capital work-in-progress		50705.072	38849.824	20109.504
INVESTMENT		1672.464	3514.469	8968.579
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21087.218	16328.649	16617.554
	Sundry Debtors	12570.825	10597.367	5620.924
	Cash & Bank Balances	3293.792	6875.024	6572.192
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9799.245	8179.561	7466.728
Total Current Assets		46751.080	41980.601	36277.398
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8322.048	7374.084	5517.593
	Current Liabilities	16811.723	14795.429	25677.647
	Provisions	3853.943	2990.224	2532.234
Total Current Liabilities		28987.714	25159.737	33727.474
Net Current Assets		17763.366	16820.864	2549.924
MISCELLANEOUS EXPENSES		243.082	277.891	283.222
TOTAL		112008.091	98494.903	71466.198

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	68178.010	57565.487	48533.071
		Other Income	227.031	168.486	197.995
		TOTAL (A)	68405.041	57733.973	48731.066
Less	EXPENSES
		Materials, Manufacturing and Others	53911.966	43784.710	42283.636
		Personnel	1520.535	1214.435	1099.741
		Administrative and Selling Expenses	2114.512	1935.265	1755.879
		Miscellaneous Expenses	34.809	31.768	3.851
		Exceptional Items	(542.249)	(2328.723)	5949.434
		Other Expenditure	0.000	0.000	0.000
		TOTAL (B)	57039.573	44637.455	51092.541
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11365.468	13096.518	(2361.475)
Less	FINANCIAL EXPENSES (D)		3330.473	3993.883	3175.863
	PROFIT / (LOSS ) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8034.995	9102.635	(5537.338)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3561.429	3398.871	3130.786
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		4473.566	5703.764	(8668.124)
Less	TAX (H)		1290.197	1918.942	(2869.920)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		3183.369	3784.822	(5798.204)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		--	--	625.061
	Denture Redemption Reserve Written Back		235.940	360.000	---
Less	APPROPRIATIONS
		Debenture Redemption Reserve	--	398.289	NA
	BALANCE CARRIED TO THE B/S		7165.842	3746.533	(5173.143)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14264.808	11108.780	12113.956
		Interest	2.666	132.632	194.969
		Other Earnings	0.000	0.000	3.232
	TOTAL EARNINGS		14267.474	11241.412	12312.157
	IMPORTS
		Raw Materials	20527.825	14936.661	16141.331
		Stores & Spares	1522.305	779.869	574.506
		Capital Goods	1015.738	12712.222	2032.457
		Others	10682.587	117.026	0.000
	TOTAL IMPORTS		33748.455	28545.778	18748.294
	Earnings / (loss) Per Share (Rs.)		16.71	23.33	(35.87)

QUARTERLY RESULTS

PARTICULARS	30.09.2011	30.06.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	18376.400	19768.800
Total Expenditure	16239.200	16754.400
PBIDT (Excl OI)	2137.200	3014.400
Other Income	1.500	2.600
Operating Profit	2138.700	3017.000
Interest	1051.500	1025.700
Exceptional Items	(1593.100)	171.300
PBDT	(505.900)	2162.600
Depreciation	939.600	891.100
Profit Before Tax	(1445.500)	1271.500
Tax	(466.100)	413.600
Profit After Tax	(979.400)	857.900
Net Profit	(979.400)	857.900

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.53	6.55	(11.90)
Net Profit Margin (PBT/Sales)	(%)	4.66	9.90	(17.86)
Return on Total Assets (PBT/Total Assets}	(%)	5.06	7.04	(11.43)
Return on Investment (ROI) (PBT/Networth)		0.19	0.29	(0.67)
Debt Equity Ratio (Total Liability/Networth)		5.05	5.46	7.00
Current Ratio (Current Asset/Current Liability)		1.61	1.66	1.08

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject is an ISO: 9001, ISO: 14001 and OHSAS 18001 certified company, is the flagship company of the Jindal Organization. The Company today, has come a long way from its incorporation in 29th September of the year 1980 as Jindal Ceramics Limited. The Company is India's largest stainless steel manufacturer with integrated melting, hot rolling and cold rolling facilities. The company produce standard and specialty stainless steel, in each of the 200, 300 and 400 series grades, for Kitenware, commercial and industrial applications. The company manufactures and sells a broad range of stainless steel flat products including slabs, blooms, flat bars, hot rolled and cold rolled coils, plates and sheets and special products including, precision strips and coin blanks. The Company's plants are situated in Haryana, Andhra Pradesh and Orissa. Subject is the fully integrated manufacturer of International standard Stainless Steel flat products in Austenitic, Ferritic and Martensitic grades; the company has strong export markets in over 40 countries including US, Europe, Middle-East and South Asian countries. The Company changed its name to Jindal Int.com Limited in 29th January of the year 2001. In order to create a focused stainless steel company, the business of Jindal Strips Limited was restructured by demerging the stainless steel business from Jindal Strips Limited to the Company and all the properties, assets, rights, powers and liabilities relating to the stainless steel undertaking of Jindal Strips Limited had been transferred to the Company with effective from April 1st 2002. During 2002-03 the company completed de-bottlenecking by augmenting the Stainless Steel melting capacity to 400,000 MT. The Company's name was renamed as Jindal Stainless Limited in 28th January of the year 2003. During April of the year 2003, the Austenitic Creations Private Limited and J-Inox Creations Limited were amalgamated with the company. Both the companies are in the business of Architecture, Building Construction sector. Subject had acquired an Indonesian company, PT. Maspion Stainless Steel and formalities has been completed in December 2004. Consequent of this acquisition, PT. Maspion Stainless Steel has become the subsidiary of the company and this Indonesian company has started commercial production. The Company had launched a premium range of beverage sets in designer stainless steel under the brand name Art d'inox and also in the same year of 2004 signed a stainless steel supply contract for US $ 18.5 million. During 2004-05 the company has entered into a technical assistance with Nisshin Company Limited, Japan to assist the company in improving quality of the finished products. Further the company has set up a service center at Gurgaon by way of subsidiary company in collaboration with an Italian company Steelwat s.r.l. Italy. The Life Style Product Division and Architecture Division of the company was hived-off to Austenitic Creations Private Limited and Jindal Architecture Limited respectively with effect from 1st April of the year 2005, vide its Order dated 13th July of the year 2006. The Company had entered into MoU with the Government of Orissa for setting up Stainless Steel project at Orissa in the year 2005-06. During the year 2006-07, the company commissioned its New Tension Leveler under Cold rolling division. In April of the year 2007, a new 220-tpd-Oxygen plant had been commissioned in Hot rolling division. Subject is expanding its operations through forward and backward integration and focusing on increased levels of productivity, quality and cost competitiveness. As at May 2008, The Company signed a Joint Venture Agreement with Antam Tbk to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi. Antam share in project 55% with Jindal owning a 45% share. The Company awarded the second phase of DTC Bus-Q-Shelters in June of the year 2008 by Delhi Transport Corporation DTC); the Second Build Own Transfer (BOT) project envisages putting up of approximately 400 Bus-QShelters uniquely designed and modeled in Stainless Steel.

FINANCIAL RESULT

During the year, the consolidated Total Sales of the Company has gone up by around 23% at Rs.80160.000 millions as compared to Rs. 64930.000 millions during previous financial year 2009-10. Consolidated Earnings before interest, depreciation, tax and exceptional item stood at Rs.11750.000 millions as compared to Rs. 11220.000 millions during previous year. Consolidated Net Profit after tax and exceptional item is Rs. 3190.000 millions in comparison to Rs.3920.000 millions during previous year

CHANGE OF NAME

During the year, name of the Company has been changed from JSL Limited to JSL Stainless Limited. Consequent upon change of name, the Registrar of Companies, has issued fresh Certificate of Incorporation on 6th August, 2010.

OPERATIONS

The Company is the largest integrated stainless steel Company in India producing diversified stainless steel flat products. Presently, it has three manufacturing facilities in India, located at Hisar in the state of Haryana, Jajpur in the state of Odisha, and Vizag in the state of Andhra Pradesh. The facilities include captive chromite mines, ferro-alloy facilities, captive thermal power plants, coke oven and stainless steel melting, hot rolling, cold rolling and downstream value-added facilities. With the melting capacity of around 1.6 million tons, your company has further strengthened its leadership position in the Asian stainless steel markets.

(A) HISAR DIVISION

During the year ended March 31, 2011, the stainless steel production has gone up to 701,814 tons as compared to previous year production of 677,841 tons. Further, the sales volumes has also grown up to 640,404 tons as compared to previous year sales volume of 606,854 tons. During the year, Hisar unit installed one more Submerged Arc Furnace to recover the materials from the various processes, bye-products and wastes like pollution dust, mill scales and pickling sludge. In view of growing special steel and precision strips requirement your company has initiated a project to increase its 0.10 mm blade steel capacity to 12,000 tons per annum which will be completed by the end of current financial year.

(B) ODISHA DIVISION

INTEGRATED STAINLESS STEEL PROJECT AT ODISHA

The company has successfully installed steel making facility, with capacity of 8,00,000 tons per annum at Jajpur, Odisha and has also started rolling of stainless steel products from this facility. The project initially conceived in SEZ, is under process of de-bonding/de-notification due to the changing global business scenario. The company has received in-principle approval for de-notification of the notified sector specific SEZ for Stainless Steel and the approval for final de-notification is awaited from the Board of Approval, Ministry of Commerce and Industry, New Delhi. The ramp-up and stabilization of finishing facilities under the project is expected during financial year 2011-12.

The company is on the point of inflexion with substantial growth in capacities resulting from development of phase II of the Odisha project. Phase II growth of the Odisha project has been satisfactory which will now give a big boost to JSL Stainless total capacity.

FERRO ALLOYS, CAPTIVE THERMAL POWER PLANT DIVISION AND CHROMITE MINES

The Ferro Alloys production during the year was 91,372 tons. A significant feature of this production was the successful production of Ferro Chrome from the 27.6 MVA furnaces in a more cost competitive manner, making use of higher percentage of low cost carburisers instead of imported LAM Coke.

The Production of Power at 250 MW thermal power plant was 1,312 (Net) million units despite a reduced purchase of power by the State Electricity Grid during the later half of the year. However, your company successfully commissioned a 14 MW Boiler of Thermax design and supply, and the facility is now fully operational, with this the total power plant capacity has reached 264 MW. The Chromite Mines division produced 25,855 tons of Chrome Ore Concentrate which is much higher than the previous year production and also achieved 11,033 tons of Chrome Ore production for the year.

COKE OVEN DIVISION

During the financial year 2010-11 your company has leased out the coke oven facility and has entered into long term job work arrangement for conversion of coal into coke. The coke oven batteries have now successfully started production of metallurgical coke with gradual ramp-up. For the year ended 31st March, 2011, the total production out of the coke oven facility stands at 49,299 tons of Coke.

(C) VIZAG DIVISION

The Vizag Plant produces High Carbon Ferro Chrome with annual capacity of 40,000 tons per annum. Vizag Unit uses Chrome Ore supplied from captive Sukhinda Chromite Mines and transfers the output to the Hisar Plant. The division has achieved 82.09% of the Installed capacity by producing 32,836 tons of High Carbon Ferro Chrome during the year 2010-11 as compared to 32,681 tons during the preceding year.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMIC OUTLOOK

The world economy is poised to grow at about 4.5% annually over 2011 and 2012. According to International Monetary Fund (IMF), the emerging and developing economies have shown a positive pattern of 6.5% growth whereas the advanced economies are growing at 2.5%. In most advanced economies, the recovery remains unbalanced with their output still running below potential. The problems of the European Union periphery, stemming from the combined interactions of low growth, fiscal woes, and financial pressures, are particularly acute. The challenge for most emerging market economies is thus quite different from that of the advanced economies-how to avoid overheating in the face of closing output gaps and higher capital flows. For a sustained recovery, advanced economies must achieve industrial consolidation. To accomplish this and to maintain their growth, they need to rely more on external demand. Correspondingly, emerging market economies too must rely less on external demand and more on domestic demand.

Economic growth in the developing countries remains the main driver of the global recovery which has been initiated by the large emerging economies in Asia and Latin America, particularly China, India and Brazil. Strong GDP growth in some of these developing countries now contributes to more than half of the expansion of the world economy. A key factor contributing towards high growth in these developing economies is their continuing growth in the internal demand.

INDIAN ECONOMY

Strongly emerging as a strong manufacturing and export oriented industrial framework, India's economic growth remains amongst the highest in the world alongside China, Russia and Brazil. Reserve Bank of India Annual Monetary Policy 2011-2012 has estimated Indian's economic growth at 8.5% during 2010-11 and projected real GDP growth at around 8.2% for 2011-12. However, the primary macroeconomic concern for the India continues to be inflation. The high inflation in the Indian economy is mainly contributed by food, non-food primary articles and fuel. As per the baseline projections provided for in RBI Annual Monetary Policy 2010-11, from the high level of inflation of 11.04% in March 2010, the WPI Index has moderated to 8.98% in March 2011, which is further likely to be moderated to 6% for March 2012. The interest rates over last one year have also firmed up substantially due to tightening of money flow by Reserve Bank of India.

As per estimates, India's per capita GDP on Purchasing Power Parity (PPP) basis is USD 3,300 in 2010 and is expected to reach USD 5,398 by 2016 depicting a marked improvement in standard of living. During last 10 years, India economy has nearly tripled from USD 480 billion to USD 1.5 trillion which is further estimated to rise to USD 4 trillion by 2020, elevating India to fourth place behind the US, China and Japan by size of economy.

This growth in Indian economy demands massive infrastructure investment largely in electricity, railways, roads, ports, airport, irrigation and urban and rural development. As per the Planning Commission's Eleventh Five Year Plan, the total investment in infrastructure should rise to 9 percent of the GDP by the end of plan period i.e. 2012. The total investment in infrastructure during the Eleventh Plan is projected at USD 514.04 billion.

Some other estimates suggest that this spending in infrastructure would escalate to USD 1.7 trillion by 2020. This large scale spending in infrastructure is mainly driven by urbanization whereby India is expected to witness substantial increase in its city population. As per UN estimates, around 500 million people would move towards urbanization over next four decades.

GLOBAL STAINLESS STEEL INDUSTRY

After 3 years of declining trend driven by stock cycles and global economic crises, stainless steel is back to emerge as the fastest growing metal globally. According to International Stainless Steel Forum (ISSF), the global stainless steel melting production has increased by 24.9% to 30.7 million tons in 2010. This significant improvement comes on account of global economic recovery and strong end-use demand.

As the leader in the stainless steel production Asia covers 65% of the world's stainless steel production and China and India will continue to be the catalysts of stainless steel demand growth for next decade. As per ISSF, stainless steel melting in Asia (without China) increased by 20.8% to 8.6 million tons. Japan increased its stainless production by 31.5% with Korea (+22.1%) and India (+17.6%) achieving clear two digit growth rates. As the main driving force towards the improved performance, China increased its Stainless steel and crude steel production by 27.8% to almost 11.3 million tons. Over the last few years the stainless steel market has witnessed major changes in its grade categories with the rising importance of Chrome-Manganese steels and more recently of chromium grades. As per ISSF estimates the market shares of the three stainless steel product grade categories in 2010 are as follows:

INDIAN STAINLESS STEEL INDUSTRY

Indian markets are showing fast growing stainless steel demand and enormous future growth potential as the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile and infrastructure sectors.

As per ISSF, the per capita consumption of stainless steel in India is 1.2 kg as compared to the world average of 4 kg and China's 5 kg. This low per capita consumption of stainless steel in India presents immense opportunities for growth in domestic stainless steel market. The stainless steel consumption in India is estimated to be around 2.0 million tons in 2010 which is expected to grow to around 5.0 million tons by 2020 at annual growth rate of around 9.5% as compared to expected world average growth of 6% over the next decade. Globally, the stainless steel usage is widely spread into infrastructure sector such as construction and transport and these account for 10 to 15 percent of total consumption. In India, stainless steel is mainly used in kitchenware sector which accounts for almost 70% of the stainless steel consumption.

The demand for the infrastructure spending is growing in India and estimated to touch around USD 1.7 trillion over the next decade. The large part of this infrastructure spending is expected to be in the areas of up-gradation of railways, railway stations, roads, airports and other transportation systems as well as various other construction activities. With the Government's focus on modernization of railways and airport systems, the demand for the stainless steel from these sectors is expected to grow considerably. Areas such as transport, tubing, construction which currently accounts for around 5% each of the total demand, are expected to consume around 15% each of the overall stainless steel consumption in India.

The Indian stainless steel market faces challenges of dumped imports of both Hot Rolled and Cold Rolled Flat Products from several countries including China, European Union, Taiwan and Korea. While the Government of India has already imposed anti-dumping duties on certain grades of CR products, the domestic industry has also sought protection against imports of Hot Rolled Flat Products of 300 Series.

JSL STAINLESS THE FACE OF INDIAN STAINLESS STEEL INDUSTRY

From a melting capacity of 87,000 tons at Hisar (Haryana) in the year 1978 to 780,000 tons, JSL Stainless has consolidated its leadership position, achieving total integration in stainless steel manufacturing. JSL Stainless's manufacturing facilities in India are located in Hisar in the state of Haryana, Jajpur in the state of Odisha and Vizag in the state of Andhra Pradesh and includes stainless steel melting, hot rolling, cold rolling facilities along with an ability to produce precision blade specialty steel, ferro alloys facilities, captive thermal power plant and chromite mines. The Company also has overseas manufacturing operations of stainless steel cold rolling in Indonesia and stainless steel service center in Spain

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Counter Guarantee given to Company’s Bankers for the guarantee given by them on behalf of Company.	429.315	575.463
Letter of Credit outstanding	8113.232	6042.956
Bills discounted by banks	2629.073	712.536
Sales tax Demands against which Company has preferred appeals.	28.068	28.068
Income tax Demands against which Company has preferred appeals.	662.138	338.673
Excise Duty/Service Tax Show Cause Notices/Demands against which company has preferred appeals.	954.441	578.265
Claim against the company not acknowledged as debt	954.730	926.971
Guarantee given to custom authorities for import under EPCG Scheme. {Custom duty saved/to be saved	8093.471	1700.603
Demand made by Sr. Dy. Director of Mines, Notified Authority, Jajpur Road Circle, Odisha as cess on Chromite Ore production. The matter being pending with Hon’ble Supreme Court.	32.049	32.049

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Electric Installation

· Vehicles

· Furniture, fixtures and equipments

· Power line and bay extension

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.52.42
UK Pound	1	Rs.81.92
Euro	1	Rs.69.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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		67

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.