MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	JSW SEVERFIELD STRUCTURES LIMITED
Registered Office :	302, Naman Centre, Plot No. C-31, G-Block, Bandra Kurla Complex, Bharat Nagar, Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.03.2009
Com. Reg. No.:	11-191045
Capital Investment / Paid-up Capital :	Rs.762.846 Millions
CIN No.: [Company Identification No.]	U28112MH2009PLC191045
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ14280A
PAN No.: [Permanent Account No.]	AACCJ4173D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged in the business of design, fabrication and Erection of Structural Steel Works.
No. of Employees :	260 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a joint venture JSW Building System Limited, India and Severfield – Rowen PLC of UK. It is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES:

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

INFORMATION DECLINED BY

Name :	Mr. Ganesh Bhat
Designation :	Accounts Manager
Contact No.:	91-22-67317000
Date :	28.12.2011

LOCATIONS

Registered Office :	302, Naman Centre, Plot No. C-31, G-Block, Bandra Kurla Complex, Bharat Nagar, Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-67317000
Fax No.:	91-22-26512685
E-Mail :	rajiv.negandhi@jssl.in r.negandhi@jswbuildingsystems.in
Website :	http://www.jssl.in
Factory:	Near 10 MT Gate, Beside Cement Plant II, P.O. Vidyanagar, Toranagallu, Sandur (Taluka) District: Bellary – 583 275, Karnataka, India

DIRECTORS

(AS ON 28.06.2011)

Name :

Mr. Derek Randall

Designation :

Director

Address :

9 Rydale Gardens, Bawtry, South Yorkshire DN106XL, United Kingdom

Date of Birth/Age :

16.06.1961

Qualification :

MBA and Doctor in Business Administration

Date of Appointment :

19.03.2009

DIN No.:

02433966

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28112MH2009PLC191045	JSW SEVERFIELD STRUCTURES LIMITED	Director	19/03/2009	19/03/2009	Active	NO
2	U28112MH2009PLC197954	JSW STRUCTURAL METAL DECKING LIMITED	Director	18/12/2009	18/12/2009	Active	NO

Name :

Mr. Jayant Rabinranath Acharya

Designation :

Director

Address :

F-303, Great Eastern Garden LBS Marg, Kanjurmarg, Mumbai-400 078, Maharashtra, India

Date of Birth/Age :

25.01.1963

Qualification :

BE (CHEMICAL), M. Sc. (Physics), MBA - Marketing

Date of Appointment :

19.03.2009

DIN No.:

00106543

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U26957MH2006PLC160839	JSW CEMENT LIMITED	Director	29/03/2006	29/03/2006	30/03/2010	Active	NO
2	U01010MH2003PLC176595	JSW STEEL PROCESSING CENTRES LIMITED	Director	15/05/2007	1/12/2006	-	Active	NO
3	U45200MH2008PLC180608	JSW BUILDING SYSTEMS LIMITED	Director	28/03/2008	28/03/2008	-	Active	NO
4	U28112MH2009PLC191045	JSW SEVERFIELD STRUCTURES LIMITED	Director	19/03/2009	19/03/2009	-	Active	NO
5	L27102MH1994PLC152925	JSW STEEL LIMITED	Director	6/7/2009	7/5/2009	-	Active	NO
6	U28112MH2009PLC197954	JSW STRUCTURAL METAL DECKING LIMITED	Director	18/12/2009	18/12/2009	-	Active	NO

Name :

Mr. Alaln Kenneth David Dunsmore

Designation :

Director

Address :

7, Grosvenor Terrace Yowk, United Kingdom YO307AG

Date of Birth/Age :

02.09.1969

Qualification :

Chart Ered Accountant, Scotland

Date of Appointment :

18.02.2010

DIN No.:

03020101

Name :

Mr. Anshul Dewat Singhal

Designation :

Director

Address :

Flat No.102, Avanti Building, 19, Centrail Avenue, Santacruz (west), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

29.01.1983

Date of Appointment :

20.04.2011

DIN No.:

00248543

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51311MH2000PTC129939	MGI (INDIA) CONSULTING PRIVATE LIMITED	Director	16/03/2004	16/03/2004	24/03/2008	Active	NO
2	U74120WB1994PLC061906	HOOGHLY WAREHOUSE INFRA LIMITED	Director	29/09/2004	29/09/2004	-	Active	NO
3	U27101GA2003PLC003239	DODA STEEL AND POWER LIMITED	Director	6/8/2005	6/8/2005	-	Active	NO
4	U67120GJ1995PTC025425	FLYING FISH TECHNOLOGIES PRIVATE LIMITED	Director	19/03/2006	19/03/2006	-	Active	NO
5	U27109WB2005PTC103275	INDO EMIRATES BUILDING SOLUTIONS PRIVATE LIMITED	Managing director	4/12/2006	4/12/2006	5/3/2008	Active	NO
6	U45202MH2007PTC173666	INDO EMIRATES BUILDING SYSTEMS PRIVATE LIMITED	Director	31/08/2007	31/08/2007	5/3/2008	Strike off	NO
7	U27106WB2004PTC099838	HOOGHLY ALLOY AND STEELS CO. PRIVATE LIMITED	Director	3/10/2008	3/10/2008	-	Active	NO
8	U28112MH2009PLC197954	JSW STRUCTURAL METAL DECKING LIMITED	Director	8/6/2011	18/02/2010	-	Active	NO
9	U28112MH2009PLC191045	JSW SEVERFIELD STRUCTURES LIMITED	Whole-time director	28/06/2011	20/04/2011	-	Active	NO
10	U74140MH1982PTC027419	SINGHAL HOUSE PRIVATE LIMITED	Director	18/11/2011	18/11/2011	-	Active	NO

Name :

Mr. Craig Douglas Jones

Designation :

Director

Address :

401, Zakaria House, Almeida park Road, Behind Bhabha Hospital, Bandra, Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

07.09.1964

Date of Appointment :

20.04.2011

DIN No.:

03526157

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28112MH2009PLC191045	JSW SEVERFIELD STRUCTURES LIMITED	Director	28/06/2011	20/04/2011	Active	NO
2	U28112MH2009PLC197954	JSW STRUCTURAL METAL DECKING LIMITED	Additional director	27/09/2011	27/09/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Ganesh Bhat
Designation :	Accounts Manager
Name :	Mr. Rajiv Jaysinh Negandhi
Designation :	Secretary
Address :	A-1205/1206, Shankar Park, Shankar Lane, Kandivali (West), Mumbai – 400067, Maharashtra, India
Date of Birth/Age :	05.10.1970
Date of Appointment :	01.05.2009
PAN No.:	AAGPW0609R
Name :	Mr. Anshul Singhal
Designation :	President – Commercial
Date of Birth/ Age :	28 years
Qualification	Bachelor of Science in Economics and Minor in Finance
Experience :	9 years
Name :	Mr. Kenneth Gray
Designation :	VP – Projects
Date of Birth/ Age :	54 years
Qualification	HND B. Tech (Mech)
Experience :	35 years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 28.06.2011)

Names of Shareholders	No. of Shares
Jugal Kishore Brij Kishor Tondoan, India	10
Rajesh Haridas Asher	10
Jayant Rabinranath Acharya	10
Derek Randall, United Kingdom	10
Allinson William Michael	10
Severfield Rowen Mauritius Limited, Port Louis Mauritius	38142270
JSW Steels Limited, India	38142270
Alaln Kenneth David Dunsmore	10
Total	76284600

(AS ON 30.09.2011)

Equity Share Breakup	Percentage of Holding
Category
Bodies Corporate (Not Mentioned above)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in the business of design, fabrication and Erection of Structural Steel Works.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit of consumption per MT of Production
Electricity (KWH)	147
Diesel (Litre)	53

GENERAL INFORMATION

No. of Employees :

260 Approximately

Bankers :

· Axis Bank Limited

Credit Management Centre, Unit 6, Corporation Park, Sion Trombay Road, Chembur, Mumbai-400 071, Maharashtra, India

· Axis Bank Limited,

Bandra (West), Mumbai, Maharashtra, India

· ICICI Bank Limited

ICICI Bank Towers, Regional Office, Shobha Pearl 1, Commissiariat Road, Bengaluru – 560001, Karnataka, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Banks
Rupee Term Loans	1244.700	194.000
Working Capital Loans	167.649	0.000
Total	1412.349	194.000
Note: (A) Rupee Term Loans and Working Capital Loans from Banks are secured by first charge by way of hypothecation / mortgage on all the movable and immovable fixed assets of the company (both present and future) and second charge by way of hypothecation of entire current assets of the company (both present and future) (B) Rupee Term Loans and Working Capital Loans from Banks are secured by first charge by way of hypothecation / mortgage on all the movable and immovable fixed assets of the company (both present and future) and second charge by way of hypothecation of entire current assets of the company (both present and future)

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400 018, Maharashtra, India
Tel. No.:	91-22-66679000
Fax No.:	91-22-66679100
Holding Company/ Joint Ventures :	· JSW Steels Limited, India L27102MH1994PLC152925 · Severfield Rowen Mauritius Limited, Port Louis
Subsidiaries :	· JSW Structural Metal Decking Limited CIN No. U28112MH2009PLC197954
Enterprises over which the investing party or venture in respect of which the reporting enterprise is a joint venture exercise significant influence.	· JSW Building Systems Limited U45200MH2008PLC180608 · JSw Cement Limited U26957MH2006PLC160839 · Severfield Reeve International Limited · Fisher Engineering Limited · JSW Realty Limited U02710MH2003PTC187132 · Jsoft Solutions Limited U72200KA2006PLC040034

CAPITAL STRUCTURE

(AS ON 28.06.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/- Each	Rs.800.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
77010800	Equity Share	Rs.10/- each	Rs.770.108 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/- Each	Rs.800.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
76284600	Equity Share	Rs.10/- each	Rs.762.846 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		762.846	373.215
2] Share Application Money		0.000	143.760
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(272.000)	(49.507)
NETWORTH		490.846	467.468
LOAN FUNDS
1] Secured Loans		1412.349	194.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		1412.349	194.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		1903.195	661.468
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1834.231	13.781
Capital work-in-progress		0.000	513.607
INVESTMENT		53.504	123.770
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	91.403	0.000
	Sundry Debtors	101.633	0.000
	Cash & Bank Balances	66.026	21.993
	Other Current Assets	347.253	6.729
	Loans & Advances	266.891	173.454
Total Current Assets		873.206	202.176
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	424.378	140.810
	Other Current Liabilities	431.660	50.308
	Provisions	1.708	0.748
Total Current Liabilities		857.746	191.866
Net Current Assets		15.460	10.310
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1903.195	661.468

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Operating Revenue	479.962	0.000
		Interest from Banks	14.395	1.644
		TOTAL	494.357	1.644
Less	EXPENSES
		Consumption Materials Changed Inventories	428.465	0.000
		Manufacturing Services Cost	40.901	0.517
		Contract Costs	7.721	0.000
		Employee Related Expenses	57.918	0.591
		Administrative, Selling and Other Expenses	118.928	16.641
		TOTAL	653.933	17.749
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(159.576)	(16.105)
Less	FINANCIAL EXPENSES		69.631	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(229.207)	(16.105)
Less/ Add	DEPRECIATION/ AMORTISATION		26.052	0.602
	PROFIT BEFORE TAX		(255.259)	(16.707)
Less	TAX		0.023	0.011
	PROFIT AFTER TAX		(255.282)	(16.718)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(16.718)	--
	BALANCE CARRIED TO THE B/S		(272.000)	(16.718)
	IMPORTS
		Capital Goods	583.164	68.167
	TOTAL IMPORTS		583.164	68.167
	Earnings Per Share (Rs.)		(4.19)	(1.35)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	(51.64)	(1016.91)
Net Profit Margin (PBT/Sales)	(%)	(53.18)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(9.43)	(7.74)
Return on Investment (ROI) (PBT/Networth)		(0.52)	(0.04)
Debt Equity Ratio (Total Liability/Networth)		4.62	0.83
Current Ratio (Current Asset/Current Liability)		1.02	1.05

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors
- Creditors Due small Micro Enterprises	0.000	0.000
- Creditors Due Others	424.378	140.810
Total	424.378	140.810

NOTE:

The Registered Office of the company has been shifted from 401, Delux Court, Plot No.1407-1409, R. V. Bambardekar Road, Station Road, Bandra (West), Mumbai - 400 050, India to the present address w.e.f. 06.06.2011.

REVIEW OF OPERATIONS

The Company has started its commercial production of the first fabrication line is commenced in November 2010 and the second fabrication line has just started its operation in March, 2011 and the company have produced 3425 MT finished product till date.

The Loss before depreciation and tax is Rs.229.207 Millions. After providing for depreciation of Rs.26.052 Millions and wealth tax of Rs.0.023 Millions, the Net Loss after tax and depreciation is Rs.255.282 Millions.

FUTURE PROSPECTS

Wirth the help of in house expertise of and State of the art technology for design; erection and fabrication of structural steelwork the company expects to make a strong position in India in commercial as well as residential construction.

The order book of the Company stood to Rs.1200.000 Millions (8370) MT.

Bankers Charges Report as per Registry

Corporate identity number of the company	U28112MH2009PLC191045
Name of the company	JSW SEVERFIELD STRUCTURES LIMITED
Address of the registered office or of the principal place of business in India of the company	302, Naman Centre, Plot No. C-31, G- Block, Bandra Kurla Complex, Bharat Nagar, Mumbai – 400051, Maharashtra, India rajiv.negandhi@jssl.in
This form is for	Creation of charge
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	ICICI Bank Limited ICICI Bank Towers, Regional Office, Shobha Pearl 1, Commissiariat Road, Bengaluru – 560001, Karnataka, India dhiren.panchal@icicibank.com
Nature of description of the instrument creating or modifying the charge	Deed of hypothecation
Date of instrument Creating the charge	29.06.2011
Amount secured by the charge	Rs.750.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 0.75% on LC, BG and Buyers Credit LUT and for Fund based I-Base + 3.50% for Cash Credit and L+200 bps for Buyers Credit fund based facility Terms of Repayment As per credit arrangement letter Margin for non fund based 5% on LC, BG and for Fund based 25% for Cash Credit Facility Extent and Operation of the charge 1st parripassu charge on the current assets of the Company 2nd parripassu charge on the movable fixed assets of the Company.
Short particulars of the property charged	Raw materials, goods in process, semi-finished and finished goods, consumable stores and spares and such other movable, including book debts, bills whether documentary or clean, both present and future at the factory situated at Near 10MT Gate, Beside Cement Plant II, P.O. Vidyanagar, Toranagallu, Sandur Taluk, District Bellary- 583275 in the State of Karnataka.

FIXED ASSETS

Tangible Assets

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Motor Car

Intangible Assets

· Computer Software

· Capital Work in Progress

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.52.89
UK Pound	1	Rs.82.71
Euro	1	Rs.69.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.