MIRA INFORM REPORT

Report Date :

31.12.2011

IDENTIFICATION DETAILS

Name :	SALZGITTER MANNESMANN STAINLESS TUBES ITALIA SRL
Registered Office :	Via Pio' 30, Costa Volpino, 24062
Country :	Italy
Financials (as on) :	31.12.2010
Date of Incorporation :	15.12.1993
Com. Reg. No.:	02276170160
Legal Form :	Private Subsidiary Company
Line of Business :	manufacture of seamless tubes, by hot rolling, hot extrusion or hot drawing, or by cold drawing or cold rolling
No. of Employees :	291

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Italy	a2	a2

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

Company name & address

Salzgitter Mannesmann Stainless Tubes Italia SRL

Via Pio' 30

Costa Volpino, 24062

Italy

Tel: +39 0359 75611

Fax: +39 0359 75803

Synthesis

Employees: 291

Company Type: Private Subsidiary

Corporate Family: 84 Companies

Ultimate Parent: Salzgitter AG

Incorporation Date: 15-Dec-1993

Financials in: uSd (Millions)

Fiscal Year End: 31-Dec-2010

Reporting Currency: Euro

Annual Sales: 122.0

Total Assets: 73.3

Business Description

Salzgitter Mannesmann Stainless Tubes Italia SRL is primarily engaged in manufacture of seamless tubes, by hot rolling, hot extrusion or hot drawing, or by cold drawing or cold rolling; manufacture of welded tubes by cold or hot forming and welding, by forming and cold drawing, or by hot forming and reducing; and manufacture of steel tube fittings (flat flanges and flanges with forged collars of steel, butt welding fittings of steel, threaded fittings and other fittings of steel).

Industry

Industry Construction - Supplies and Fixtures

ANZSIC 2006: 2122 - Steel Pipe and Tube Manufacturing

NACE 2002: 2722 - Manufacture of steel tubes

NAICS 2002: 331210 - Iron and Steel Pipe and Tube Manufacturing from Purchased Steel

UK SIC 2003: 2722 - Manufacture of steel tubes

US SIC 1987: 3317 - Steel Pipe and Tubes

Key Executives

Name	Title
Michael Hans Josef Bellinghausen	President
Flavio Mario Abeni	Executive
Matteo Beccagutti	Executive
Enio Consolandi	Member of the board
Joachim Martin	Member of the board

Registered No.(ITA): 02276170160

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7550783

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7454064

Corporate Overview

Location

Via Pio' 30

Costa Volpino, 24062

BERGAMO County

Italy

Tel: +39 0359 75611

Fax: +39 0359 75803

Sales EUR(mil): 92.1

Assets EUR(mil): 54.6

Employees: 291

Fiscal Year End: 31-Dec-2010

Industry: Construction - Supplies and Fixtures

Incorporation Date: 15-Dec-1993

Company Type: Private Subsidiary

Quoted Status: Not Quoted

Registered No.(ITA): 02276170160

Member of the board: Enio Consolandi

Contents

· Industry Codes

· Business Description

· Financial Data

· Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:

3322 - Metal and Mineral Wholesaling

2122 - Steel Pipe and Tube Manufacturing

NACE 2002 Codes:

5152 - Wholesale of metals and ores

2722 - Manufacture of steel tubes

NAICS 2002 Codes:

331210 - Iron and Steel Pipe and Tube Manufacturing from Purchased Steel

423520 - Coal and Other Mineral and Ore Merchant Wholesalers

US SIC 1987:

505 - Metals and Minerals, Except Petroleum

3317 - Steel Pipe and Tubes

UK SIC 2003:

5152 - Wholesale of metals and ores

2722 - Manufacture of steel tubes

Business Description

Salzgitter Mannesmann Stainless Tubes Italia SRL is primarily engaged in manufacture of seamless tubes, by hot rolling, hot extrusion or hot drawing, or by cold drawing or cold rolling; manufacture of welded tubes by cold or hot forming and welding, by forming and cold drawing, or by hot forming and reducing; and manufacture of steel tube fittings (flat flanges and flanges with forged collars of steel, butt welding fittings of steel, threaded fittings and other fittings of steel).

Financial Data

Financials in:	EUR(mil)
Revenue:	92.1
Assets:	54.6
Current Assets:	46.5
Total Liabilities:	54.6
Net Worth:	14.2
Date of Financial Data:	31-Dec-2010

1 Year Growth

-39.7%

NA

Key Corporate Relationships

Bank:	UniCredit Banca Fil, Banca Popolare di Bergamo Ag

Corporate Family	Corporate Structure News:
	Salzgitter AG Salzgitter Mannesmann Stainless Tubes Italia SRL
Salzgitter Mannesmann Stainless Tubes Italia SRL Total Corporate Family Members: 84 Excluded Small Branches and/or Trading Addresses: 1 (Available via export)

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Salzgitter AG	Parent	Salzgitter	Germany	Iron and Steel	11,457.0	25,138
Salzgitter Mannesmann Precision Etirage	Subsidiary	Cheu	France	Construction - Supplies and Fixtures	217.2	1,159
Salzgitter Mannesmann Präzisrohr GmbH	Subsidiary	Hamm	Germany	Iron and Steel	229.5	800
Salzgitter Automotive Engineering GmbH & Co. KG	Subsidiary	Osnabruck, Niedersachsen	Germany	Engineering Consultants	75.0	300
Salzgitter Hydroforming GmbH & Co KG	Subsidiary	Crimmitschau, Sachsen	Germany	Auto and Truck Parts		200
Salzgitter Mannesmann Handel GmbH	Subsidiary	DUsseldorf	Germany	Miscellaneous Capital Goods	4,005.3	132
Salzgitter Mannesmann Stahlhandel Gesellschaft mit beschrankter Haftung	Subsidiary	DUsseldorf, Nordrhein-Westfalen	Germany	Miscellaneous Capital Goods		1,000
Hildesheimer Stahlhandel GmbH & Co KG	Subsidiary	Hildesheim, Niedersachsen	Germany	Miscellaneous Capital Goods		32
Stahl-Center Baunatal Gesellschaft mit beschrankter Haftung	Subsidiary	Baunatal, Hessen	Germany	Miscellaneous Transportation		20
Salzgitter Mannesmann International GmbH	Subsidiary	DUsseldorf	Germany	Miscellaneous Capital Goods	3,198.7	200
Salzgitter Mannesmann Handel GmbH	Subsidiary	Guangzhou	China	Miscellaneous Capital Goods		100
Salzgitter Mannesmann Intl USA	Subsidiary	Houston, TX	United States	Miscellaneous Fabricated Products	3,750.0	20
Salzgitter Mannesmann Stnlss	Branch	Houston, TX	United States	Iron and Steel	33.3	75
Salzgitter Mexico SA Cv	Subsidiary	Mexico City, Distrito Federal	Mexico	Miscellaneous Capital Goods	0.0	13
Salzgitter-Mannessmann Acelkereskedelmi Kft	Subsidiary	Budapest	Hungary	Oil Well Services and Equipment		11
Salzgitter Mannesmann Intl Inc	Subsidiary	Vancouver, BC	Canada	Consumer Financial Services	4.0	5
Beck & Co. Industriebedarf GmbH & Co. KG	Subsidiary	Monchengladbach, Nordrhein-Westfalen	Germany	Miscellaneous Capital Goods		20
Salzgitter Mannesmann (Italia) SRL	Subsidiary	Milano	Italy	Miscellaneous Capital Goods	1.2	7
Salzgitter Mannesmann Staalhandel B.V.	Subsidiary	Oosterhout Nb, Noord-Brabant	Netherlands	Miscellaneous Financial Services	159.9
Salzgitter Mannesmann (France) Sarl	Subsidiary	St Mande	France	Miscellaneous Capital Goods	3.6
Deltastaal	Subsidiary	Oosterhout	Netherlands	Miscellaneous Capital Goods
Salzgitter Mannesmann Stahlhandel	Subsidiary	DUsseldorf	Germany	Consumer Financial Services
Frieslandstaal B.V.	Subsidiary	Drachten	Germany	Consumer Financial Services
STAHL-METALL-SERVICE Gesellschaft fur Bandverarbeitung mbH	Subsidiary	Fellbach, Baden-Wurrttemberg	Germany	Iron and Steel	136.0	106
Recently acquired (previously owned by STAHL-METALL-SERVICE Gesellschaft fur Bandverarbeitung mbH).See corporate structure news on Salzgitter AG for details
Klockner-Werke Ag	Subsidiary	Duisburg	Germany	Containers and Packaging	13.3	50
Salzgitter Automotive Engineering Beteiligungsgesellschaft mbH	Subsidiary	Osnabruck, Niedersachsen	Germany	Engineering Consultants		25
Phoenix Immobilienverwaltungsgesellschaft mbH & Co. KG	Subsidiary	Frankfurt Am Main, Hessen	Germany	Real Estate Operations		5
RSE Projektmanagement GmbH	Subsidiary	Frankfurt Am Main, Hessen	Germany	Real Estate Operations	0.3	2
Salzgitter Mannesmann GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Commercial Banks	167.8
Kloeckner Werke AG	Subsidiary	Frankfurt am Main	Germany	Miscellaneous Fabricated Products	1,132.5	5,416
KHS GmbH	Subsidiary	Dortmund	Germany	Miscellaneous Capital Goods	785.9	5,690
KHS USA Inc	Subsidiary	Waukesha, WI	United States	Miscellaneous Capital Goods	43.5	250
Khs	Branch	Sarasota, FL	United States	Medical Equipment and Supplies	32.5	101
KHS Manufacturing SA Pty Ltd	Subsidiary	Sandton	South Africa	Miscellaneous Capital Goods	90.0	25
KHS Hensen Packaging GmbH	Subsidiary	Dortmund, Nordrhein-Westfalen	Germany	Miscellaneous Capital Goods		25
Khs	Subsidiary	Torcy	France	Appliance and Tool	1.7	14
Khs Benelux B.V.	Subsidiary	Breda, Noord-Brabant	Netherlands	Construction and Agriculture Machinery		5
KHS Maschinen-und Anlagenbau AG	Subsidiary	Almaty	Kazakhstan	Miscellaneous Capital Goods
KHS AG	Subsidiary	Moscow	Russian Federation	Food Processing
Debrunner Koenig Holding AG	Subsidiary	St. Gallen, St. Gall	Switzerland	Iron and Steel	625.0	1,100
Klockner Hänsel Processing GmbH	Subsidiary	Hannover, Niedersachsen	Germany	Miscellaneous Capital Goods	1.0	127
Klockner PET-Technologie GmbH	Subsidiary	Frankfurt Am Main, Hessen	Germany	Consumer Financial Services
KHS Corpoplast GmbH	Subsidiary	Hamburg	Germany	Miscellaneous Capital Goods	135.3	300
SZST Salzgitter Service und Technik GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Business Services	181.9	2,368
Salzgitter Mannesmann Stainless Tubes GmbH	Subsidiary	Mullheim An Der Ruhr, Nordrhein-Westfalen	Germany	Construction - Supplies and Fixtures		1,100
Salzgitter Mannesmann Stainless Tubes France	Subsidiary	Montbard	France	Construction - Supplies and Fixtures	202.0	337
Salzgitter Mannesmann Stainless Tubes Deutschland GmbH	Subsidiary	Remscheid, Nordrhein-Westfalen	Germany	Construction - Supplies and Fixtures		300
Salzgitter Mannesmann Stainless Tubes Italia SRL	Subsidiary	Costa Volpino	Italy	Construction - Supplies and Fixtures	122.0	291
Verkehrsbetriebe Peine-Salzgitter GmbH	Subsidiary	Salzgitter	Germany	Miscellaneous Transportation	140.1	780
Salzgitter Mannesmann Grobblech GmbH	Subsidiary	Mullheim An Der Ruhr, Nordrhein-Westfalen	Germany	Iron and Steel		740
Mannesmannrohren-Werke Qualifizierungsgesellschaft mbH	Subsidiary	Mullheim An Der Ruhr, Nordrhein-Westfalen	Germany	Schools		700
Salzgitter Mannesmann Line Pipe GmbH	Subsidiary	Siegen	Germany	Construction - Supplies and Fixtures	371.8	600
HSP Hoesch Spundwand und Profil GmbH	Subsidiary	Dortmund, Nordrhein-Westfalen	Germany	Construction - Supplies and Fixtures	214.3	450
Universal Eisen und Stahl GmbH	Subsidiary	Neuss	Germany	Miscellaneous Capital Goods		400
Universal Aciers	Subsidiary	Couzon Au Mont D Or	France	Miscellaneous Capital Goods	14.5	14
Universal Steel Holland B.V.	Subsidiary	Papendrecht, Zuid-Holland	Netherlands	Miscellaneous Capital Goods		7
Salzgitter Mannesmann Forschung GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Biotechnology and Drugs	33.8	315
Deumu Deutsche Erz und Metall-Union GmbH	Subsidiary	Peine	Germany	Miscellaneous Capital Goods	443.7	250
Hovelmann & Lueg GmbH	Subsidiary	Schwerte, Nordrhein-Westfalen	Germany	Miscellaneous Capital Goods	268.3	200
Flachform Stahl GmbH	Subsidiary	Schwerte	Germany	Iron and Steel	1.0
Salzgitter Mannesmann Grobrohr GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Construction - Supplies and Fixtures		150
Hansaport Hafenbetriebsgesellschaft mbH	Subsidiary	Hamburg, Hamburg	Germany	Miscellaneous Transportation	1.0	110
Salzgitter Mannesmann Seamless Tubes B.V.	Subsidiary	Helmond, Noord-Brabant	Netherlands	Construction - Supplies and Fixtures	41.1	100
Salzgitter Europlatinen GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Miscellaneous Fabricated Products	61.5	90
Salzgitter Bauelemente GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Iron and Steel	0.1	60
Mannesmannrohren-Werke GmbH	Subsidiary	MUlheim An Der Ruhr, Nordrhein-Westfalen	Germany	Commercial Banks	2,201.0	50
Mannesmann DMV Stainless GmbH	Subsidiary	MUlheim an der Ruh	Germany	Iron and Steel	478.6	1,100
Mannesmann Prazisrohr GmbH	Subsidiary	Hamm	Germany	Iron and Steel	371.1	1,070
Mannesmannrohr Sachsen GmbH	Subsidiary	Zeithain	Germany	Iron and Steel	1.0
Gluckauf Immobilien GmbH	Subsidiary	Peine, Niedersachsen	Germany	Business Services		33
Salzgitter Mannesmann Personalservice GmbH	Subsidiary	MUlheim An Der Ruhr, Nordrhein-Westfalen	Germany	Business Services		20
RSE Grundbesitz und Beteiligungs-Aktiengesellschaft	Subsidiary	Frankfurt Am Main, Hessen	Germany	Business Services	1.6	4
Salzgitter Mannesmann Precision GmbH	Subsidiary	MUlheim An Der Ruhr, Nordrhein-Westfalen	Germany	Commercial Banks		3
Salzgitter Mannesmann Prazisrohr GmbH	Subsidiary	Hamm, Nordrhein-Westfalen	Germany	Construction - Supplies and Fixtures	6.5	800
Salzgitter Mannesmann Rohr Sachsen GmbH	Subsidiary	Zeithain, Sachsen	Germany	Construction - Supplies and Fixtures		400
Dr. C. Otto Feuerfest GmbH	Subsidiary	Bochum	Germany	Personal and Household Products	75.0
Verkehrsbetriebe Peine-Salzgitter	Subsidiary	Salzgitter	Germany	Water Transportation	57.8
Gluckauf Wohnungsgesellschaft mbH	Subsidiary	Peine	Germany	Real Estate Operations
Salzgitter Magnesium-Technologie	Subsidiary	Salzgitter	Germany	Miscellaneous Fabricated Products
Salzgitter Stahl GmbH	Subsidiary	Salzgitter	Germany	Iron and Steel
Salzgitter Flachstahl GmbH	Subsidiary	Salzgitter, Niedersachsen	Germany	Iron and Steel	3,342.7	4,400
Peiner Trager GmbH	Subsidiary	Peine, Niedersachsen	Germany	Iron and Steel	1,387.1	1,200
Ilsenburger Grobblech GmbH	Subsidiary	Ilsenburg, Sachsen-Anhalt	Germany	Iron and Steel	350.0	740

Executive report

Board of Directors

Name	Title	Function
Enio Consolandi	Member of the board	Director/Board Member
Joachim Martin	Member of the board	Director/Board Member
Giancarlo Rizzi	Member of the board	Director/Board Member

Executives

Name	Title	Function
Michael Hans Josef Bellinghausen	President	President
Flavio Mario Abeni	Executive	Other
Matteo Beccagutti	Executive	Other
Mario Bertoletti	Executive	Other
Gian Mario Bonafini	Executive	Other
Massimo Brignoli	Executive	Other
Mauro Leali	Executive	Other
Ivan Giuseppe Nembrini	Executive	Other
Daniele Rossi	Executive	Other
Egidio Sangalli	Executive	Other

Annual Profit & Loss

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.755078	0.719047	0.683679
Consolidated	No	No	No
Total income	114.2	212.2	325.1
Net sales	122.0	212.5	328.5
Other operating income	1.7	2.3	8.3
Raw materials and consumables employed	79.1	163.9	251.5
Other expenses	17.6	20.6	23.4
Total payroll costs	17.8	19.3	22.3
Fixed asset depreciation and amortisation	2.6	2.7	2.6
Other operating costs	0.6	0.6	2.8
Net operating income	-3.6	5.1	22.4
Total financial income	-0.5	0.4	-1.0
Total expenses	0.4	0.8	2.6
Profit before tax	-4.4	4.7	18.8
Extraordinary result	2.8	-8.0	-0.2
Profit after extraordinary items and before tax	-1.7	-3.2	18.7
Total taxation	0.9	3.2	7.2
Net profit	-	-	11.5
Net loss	2.6	6.5	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.745406	0.696986	0.719399
Consolidated	No	No	No
Total stockholders equity	19.0	23.2	28.9
Provision for risks	10.9	14.4	7.1
Provision for pensions	4.1	4.6	4.5
Trade creditors	8.1	7.9	9.7
Bank loans and overdrafts	0.0	0.0	0.0
Other current liabilities	31.2	59.6	92.6
Total current liabilities	39.3	67.5	102.4
Total liabilities (including net worth)	73.3	109.7	142.9
Intangibles	-	0.1	0.1
Total tangible fixed assets	10.9	12.9	12.8
Total financial assets	0.0	0.0	0.0
Total non-current assets	10.9	13.0	12.9
Finished goods	19.2	-	31.9
Net stocks and work in progress	29.7	45.0	45.9
Trade debtors	13.4	13.0	-
Other receivables	19.2	38.6	84.0
Cash and liquid assets	0.0	0.0	0.1
Accruals	-	0.0	0.0
Total current assets	62.4	96.7	130.0
Total assets	73.3	109.7	142.9

Annual Ratios

Financials in: USD (mil)

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.745406	0.696986	0.719399
Consolidated	No	No	No
Current ratio	1.60	1.40	1.30
Quick ratio	0.80	0.80	0.80
Current liabilities to net worth	0.02%	0.03%	0.04%
Sales per employee	0.32	0.53	0.77
Profit per employee	0.00	-0.01	0.04
Average wage per employee	0.05	0.05	0.05
Net worth	19.0	23.2	28.9
Number of employees	286	289	287

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.27
UK Pound	1	Rs.82.09
Euro	1	Rs.68.90

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	----

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%)

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