MIRA INFORM REPORT

Report Date :

28.01.2011

Note : The company management has confirmed that there is no address located in C-13, Pannalal Silk Compound, LBS Marg, Bhandup, Mumbai – 400078, Maharashtra, India

IDENTIFICATION DETAILS

Name :	INDIA STEEL WORKS LIMITED (w.e.f. 22.10.2007)
Formerly Known As :	ISIBARS LIMITED
Registered Office :	C- 63, TTC MIDC, Turbhe, Navi Mumbai-400 705, Mumbai, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.04.1987
Com. Reg. No.:	43186
CIN No.: [Company Identification No.]	L29100MH1987PLC043186
TAN No.: [Tax Deduction & Collection Account No.]	MUMI01649E
PAN No.: [Permanent Account No.]	AAACI1362A
Legal Form :	A Public Limited Company. The company’s shares are again listed on the Stock Exchange after a lapse of 7/8 months.
Line of Business :	Manufacturer and Marketer of Special Steels and Bright Bars.

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 2600000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be under pressure. 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 and delayed. The company can be considered for business dealings on a secured 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

INFORMATION DECLINED BY

Name :	Ms. Salochna Gupta
Designation :	Accounts Department
Date :	25.01.2011

LOCATIONS

Registered Office/ Factory :	C- 63, TTC Area, MIDC Turbhe, Navi Mumbai-400 705, Mumbai, Maharashtra , India
Tel. No.:	91-22-27686446 / 2768 6437 / 27670424
Fax No.:	91-22-27633888
E-Mail :	cosec@isibar.com info@indiasteel.in
Website :	www.indiasteel.in www.isibars.com
Corporate Office / Marketing Office :	India Steel Complex, MTV Road, Wadala (East), Mumbai – 400 037, Maharashtra, India
Tel. No.:	91-22-24145582
E-Mail :	91-22-24146022
Special Steel Division :	Khopoli, Dist. Raigad – 410203, Maharashtra, India
Tel No.:	91-22-2192265812
Fax No.:	91-22-2192264061
Stainless Steel Wire Plant :	Savroli, Taluka Khalapur, Khopoli, Distict. Raigad, Maharashtra – 410202, India
Tel. No. :	91-22-2192274053
Fax no.:	91-22-2192274080

DIRECTORS

As on : 30.09.2010

Name :	Mr. Ashwinkumar Harbanlal Gupta
Designation :	Chairman
Address :	Ashiana, Vasant Vihar, C.G. Road, Chambur, Mumbai – 400074, Maharashtra, India
Date of Birth/Age :	06.01.1950
Date of Appointment :	19.02.1990
Name :	Mr. Sudhirkumar Harbanslal Gupta
Designation :	Managing Director
Address :	Ashoka Building, Adenwala Road, Matunga, Mumbai – 400031, Maharashtra, India
Date of Birth/Age :	06.07.1961
Date of Appointment :	19.02.1990
Name :	Mr. Varun Sudhirkumar Gupta
Designation :	Director
Address :	Ashok, 541/C, Adenwala Road, King Circle, Matunga (West), Mumbai – 400019, Maharashtra, India
Date of Birth/ Age :	17.06.1985
Date of Appointment :	17.12.2009
Name :	Mr. Satyaprakash Achru Khosla
Designation :	Director
Address :	Norwood, Lokhandwala Complex, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/ Age :	01.05.1929
Date of Appointment :	25.09.1999
Name :	Mr. Bimal Ramanlal Desai
Designation :	Director
Address :	A-14, Jay Prabhat, Sahakar Nagar, J P Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/ Age :	19.11.1964
Date of Appointment :	12.12.2006
Name :	Mr. Neeraj Damodar Agarwal
Designation :	Director
Address :	103, laxmi Plaza, Laxmi Industrial Estate, New Link Road, Mumbai – 400053, Maharashtra, India
Date of Birth/ Age :	28.09.1974
Date of Appointment :	12.12.2006
Name :	Mr. Mahesh Kundapoor Sheregar
Designation :	Director
Address :	Hattan Villa -17, Arabian Ranches, Dubai – 11072
Date of Birth/ Age :	21.10.1963
Date of Appointment :	13.08.2010

KEY EXECUTIVES

Name :	Mrs. Renuka Daga
Designation :	Company Secretary
Address :	B-1603, Savoy, Raheja Gardens, LBS Marg, Thane (W), Mumbai – 400603, Maharashtra, India
Date of Birth/ Age :	18.06.1973
Date of Appointment :	14.01.2005
Date of Ceasing :	01.10.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of promoters and Promoter Group
1. Indian
Individuals / Hindu Undivided Family	12191310	5.21
Bodies Corporate	100322650	42.86
Sub Total (A) (1)	112513960	48.07
(B) Public Shareholding
1. Institutions
Mutual Funds / UTI	3600	--
Financial Institutions / Banks	2812475	1.20
Foreign Institutional Investors	14334300	6.12
Any other (Specify)	14349200	6.13
Foreign Financial Institution	14900	0.01
Foreign Mutual Fund	14334300	6.12
Sub Total	31449575	13.46
2. Non Institutions
Bodies Corporate	43273014	18.49
Individual shareholders holding nominal share capital up to Rs. 0.100 million	6658725	2.84
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	12379705	5.29
Any other (Specify)	27755946	11.86
Clearing Members	87611	0.04
Foreign Corporate Bodies	27260000	11.65
Market Maker	28424	0.01
Non Resident Indians	378411	0.16
Directors and their relatives and friends	1500	--
Sub Total (B) (2)	90067390	38.48
(B) = (B) (1) + (B) (2)	121566965	51.93
Total (A)+(B)	234080925	100.00
Shares held by custodians and against which depository receipts have been issued (C)	--	--
Total (A) + (B) +(C)	234080925	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Special Steels and Bright Bars.

Products :

Item Code	Product Description
722211.00	Stainless Steel Bars and Rods
722220.00	Stainless Steel Bright Bars and Rods
721899.00	Stainless Steel Billets

Exports :

Products :

Finished Products

Countries :

USA, South East Asia , Middle East

Imports :

Products :

Raw Materials

Countries :

USA

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

Cash

Production Status : As on 31.03.2009

Particulars	Installed Capacity (31.03.2009)	Actual Production (31.03.2009)
Steel Billets (Own)	54000	13775
Hot Rolled Bars/Wire Rods (Own)	100000	16845
Hot Rolled Bars/Wire Rods (Job Work)		31104
Cold Finished Bars/Wires (Job Work)	10000	5031
* Licensed Capacity is no longer applicable

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, End Users, OEM’s

No. of Employees :

800 (Approximately)

Bankers :

Indian Bank , Mumbai Branch,

Facilities :

Particulars	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
IDBI - (CDR)	--	155.985
GIC & its Subsidiaries - (CDR)	57.092	102.096
Asset Reconstruction Company (India) Limited - (CDR)	532.500	543.200
Other Banks	354.539	492.670
Interest - Accrued & Due - (CDR)	29.784	14.247
Total	973.915	1308.198

Note : Above CDR debts are secured/to be secured by first mortgage & charges on all immoveable and moveable

properties, both present and future, subject to the prior charge in favour of bankers on specifed movables, created/

to be created for securing the restructured debts ranking pari passu and personal guarantees of some of the

promoter directors of the Company

Particulars	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
Unsecured Loans
Loan from Directors	3.758	4.183
Inter Corporate Loans	600.948	607.200
Loan from Others	15.649	16.227
Total	620.355	627.610

Banking Relations :

Unknown

Auditors :

Name :

Thanawala and Company

Chartered Accountant

Address :

505, Abhay Steel House, 5^th Floor, 22, Baroda Street, Mumbai – 400009, Maharashtra, India

CAPITAL STRUCTURE

As on : 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
6,30,00,000	Cumulative Preference Shares [Pr. Yr. 3,92,00,000 Cum. Pref. Shares of Rs 10/- each]	Rs. 10/- each	Rs.630.000 millions
21,00,00,000	Equity Shares [Pr. Yr. 20,80,00,000 equity shares of Re.1/- each]	Rs. 10/- each	Rs.210.000 millions
	Unclassified Shares Rs. 4,00,00,000/- [Pr. Yr. -Rs. Nil/-]		Rs. 40.000 millions
	Total		Rs. 880.000 millions

Issued Share Capital :

No. of Shares	Type	Value	Amount
20,00,000	14% Cumulative Preference Shares of [Pr. Yr. 30,00,000 Equity Shares of Re.1/- each]	Rs.10/- each	Rs.20.000 millions
5,12,88,482	0.01% Cumulative Redeemable Preference Shares [Pr. Yr. 20,42,70,000 Equity Shares of Re.1/- each]	Rs.10/- each	Rs.512.884 millions
81,90,974	0.01% Cumulative Redeemable Preference Shares (Option Series) of Rs. 10/- each. [Pr. Yr. NIL]	Rs.10/- each	Rs. 81.909 millions
20,42,70,000	Equity Shares (Option Series) of Rs. 10/- each. [Pr. Yr. NIL]	Rs. 1/- each	Rs.204.270 millions
30,00,000	Equity Shares [Pr. Yr. 3,25,20,500 0.01% CRPS of Rs 10/- each]	Rs. 1/- each	Rs.3.000 millions
	Total		Rs. 822.064 millions

Paid up capital

No. of Shares	Type	Value	Amount
20,00,000	14% Cumulative Preference Shares of [Pr. Yr. 20,00,000 14% Cum. Pref. Shares of Rs 10/- each]	Rs.10/- each	Rs.20.000 millions
5,12,88,482	0.01% Cumulative Redeemable Preference Shares fully paid, issued for consideration other than cash, pursuant to the Scheme of CDR. [Pr. Yr. 3,25,20,500 - 0.01% Cumulative Redeemable Preference Shares of Rs. 10/- each ]	Rs.10/- each	Rs.512.885 millions
81,90,974	0.01% Cumulative Redeemable Preference Shares (Option Series) of Rs. 10/- each, fully paid, issued for consideration other than cash, pursuant to the Scheme of CDR. [Pr. Yr. NIL]	Rs.10/- each	Rs.81.909 millions
20,42,70,000	Equity Shares [Pr. Yr. 20,42,70,000 Equity Shares of Re.1/- each]	Rs. 1/- each	Rs.204.270 millions
	Total		Rs. 819.064 millions

Note :

Of the 20,42,70,000 Equity Shares, 51,00,000 Equity Shares of Re. 1/- each were issued as fully paid up Bonus Shares by way of capitalization of Reserves and 2,00,00,000 Equity Shares of Re. 1/- each were issued for consideration other than cash, pursuant to the Scheme of CDR

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		819.100	819.064	595.991
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(153.200)	1218.675	1218.675
4] (Accumulated Losses)		0.000	(1350.343)	(970.321)
NETWORTH		665.900	687.396	844.345
LOAN FUNDS
1] Secured Loans		749.800	973.915	1308.198
2] Unsecured Loans		571.800	620.355	627.610
TOTAL BORROWING		1321.600	1594.270	1935.808
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1987.500	2281.666	2780.153
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1756.300	1884.862	2001.037
Capital work-in-progress		8.000	0.000	0.000
INVESTMENT		0.600	1.009	3.419
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	290.000	320.339	650.744
	Sundry Debtors	147.400	67.569	368.983
	Cash & Bank Balances	21.500	10.812	136.448
	Other Current Assets	261.310	10.677	66.104
	Loans & Advances	474.600	626.323	257.745
Total Current Assets		1194.810	1035.720	1480.024
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	699.000	364.560	223.161
	Sundry Creditors		267.543	446.460
	Provisions	13.800	13.004	11.188
Total Current Liabilities		712.800	645.107	710.809
Net Current Assets		220.800	390.613	769.215
MISCELLANEOUS EXPENSES		1.800	5.182	6.482
TOTAL		1987.500	2281.665	2780.152

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1021.700	1446.469	2430.180
		Other Income	83.100	61.591	31.594
		TOTAL (A)	1104.800	1508.060	2461.774
Less	EXPENSES
		Cost of materials		1001.108	1671.976
		Purchase of trading goods		0.000	266.824
		Other manufacturing expenses		276.430	546.544
		Administrative and Selling Expenses		38.792	46.034
		Preliminary and share issue expenses W/off		0.651	0.222
		Investment Written off		--	0.015
		Export Incentives W/off	1470.100	5.364	--
		Bad debts		8.583	4.228
		Provision for diminution in value of investments		2.409	--
		Provision fore diminution in value of investments no longer required, W/back		--	(0.981)
		Increase / Decrease in finished goods		314.019	(338.057)
		TOTAL (B)	1470.100	1647.356	2196.805
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(365.300)	(139.296)	264.969
Less	FINANCIAL EXPENSES (D)		65.100	29.101	24.898
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(300.200)	(168.397)	240.071
Less/ Add	DEPRECIATION/ AMORTISATION (F)		136.000	136.026	132.124
	PROFIT BEFORE TAX (E-F) (G)		(164.200)	(304.423)	107.947
Less	TAX (I)		0.800	0.793	50.434
	PROFIT AFTER TAX (G-I) (J)		(163.400)	(305.216)	158.381
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(970.321)	(1124.554)
	BALANCE CARRIED TO THE B/S		NA	(74.804)	(970.321)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	NA	Nil	10.471
	TOTAL EARNINGS		NA	Nil	10.471
	IMPORTS
		Raw Materials and Consumables	NA	104.549	216.579
		Capital Goods	NA	1.368	0.439
	TOTAL IMPORTS		NA	105.917	217.018
	Earnings Per Share (Rs.)		--	(1.86)	0.84

QUARTERLY RESULTS

PARTICULARS	30.09.2010	30.06.2010
Type	1^st Quarter	2^nd Quarter
Sales Turnover	537.760	396.260
Total Expenditure	516.860	412.560
PBIDT (Excl OI)	20.900	(16.300)
Other Income	0.000	0.000
Operating Profit	20.900	(16.300)
Interest	14.2100	14.470
Exceptional Items	0.000	0.000
PBDT	6.690	(30.770)
Depreciation	33.920	35.100
Profit Before Tax	(27.230)	(65.870)
Tax	0.000	0.000
Reported PAT	(27.230)	(65.870)
Extraordinary Items	(0.420)	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(27.650)	(65.870)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(14.79)	(20.23)	6.43
Net Profit Margin (PBT/Sales)	(%)	(16.07)	(21.04)	4.44
Return on Total Assets (PBT/Total Assets}	(%)	(5.56)	(10.42)	3.10
Return on Investment (ROI) (PBT/Networth)		(0.24)	(0.44)	0.12
Debt Equity Ratio (Total Liability/Networth)		3.05	3.25	3.13
Current Ratio (Current Asset/Current Liability)		1.79	1.50	2.08

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Sundry Creditors for goods and expenses	NA	267.543	446.460
TOTAL	NA	267.543	446.460

Fixed Assets :

• Furniture and Fixture (WIP)
• Plant and Machinery (WIP)
• Furniture and Fixtures
• Office Equipment and Appliances
• Data Processing Equipment
• Motor Vehicles
• Plant and Machinery
• Office/Residential Buildings
• Factory Buildings
• Land

OPERATIONS :

It has been an important year for the Company. While the markets world-wide were reeling under the economic turmoil, the Company sought to reinforce and consolidate its operations. Several bold initiatives marked their presence during the year.

The reinstatement of the facility at Khopoli was partially completed such that production could be re-started. The plant has been fully geared up for optimum operations, from machinery and equipment to systems and controls. The facilities have been commensurately streamlined for stocking and deliveries. The entire Management and administration office, except for a small corporate office, has been shifted to Khopoii, for a concentrated and rationalized effort.

At the Turbhe facility, which was enveloped in recurring losses due to high operational costs, a Voluntary Retirement Scheme was offered to the Workers. The Scheme was well received and was successfully implemented in the current year to sever off all the workers at the Facility. It is proposed to consolidate all facilities at one location to increase efficiency.

Post consolidation, the main constraint of the Company would be working capital. To address this, the Company has undertaken to zero down its restructured debts and raise fresh working capital from the market for optimizing production capabilities. A positive step in that direction is to sell or otherwise dispose of the facility at the Turbhe Plant and utilize the proceeds for retiring the existing restructured debts.

The rationalisation measures taken by the Company are long term wherein operations should gradually strengthen in the current year. Visible progress is being made, which, though slow, is balanced and certain.

However, in the immediate term, the impact of the global slow down and internal efficacies was evident. The Company could make an annual turnover of Rs.1021.700 against a turnover of Rs. 1446.400 Millions in the previous financial year and booked losses to the tune of Rs. 163.400 millions after taking into account all exceptional items. A part of the losses could be set-off against the full and final settlement of the insurance claim receivable still pending with the Insurance Company.

FINANCIAL RESTRUCTURING :

In the last quarter of the year, the proposal for rescheduling of payments under Corporate Debt Restructuring (CDR) Scheme of the Company was approved by the CDR EG, and the Company started making payments to the Lenders accordingly. There is no pending litigation against the Company in the Debt Recovery Tribunal, all litigations have been effectively settled with mutual consent.

The Settlement Agreement executed with Commerz Bank has been lying in abeyance for want of permission of Reserve Bank of India. The Company is in process of making appropriate application in the High Court of Bombay in the winding up petition filed by Commerz Bank to take cognizance of this Settlement Agreement.

FORM : 8

This form is for	Modification of charge
Corporate identity number of the company	L29100MH1987PLC043186
Name of the company	ISIBARS LIMITED
Address of the registered office or of the principal place of business in India of the company	C- 63, TTC Area, MIDC Turbhe, Navi Mumbai-400 705, Mumbai, Maharashtra , India
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Export - Import Bank of India (Exim Bank), Centre one, world trade centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Nature of instrument creating charge	Assignment agreement entered into between Export-Import Bank of India(EXIM BANK) and Asset Reconstruction Company (India) Limited as Trustee of Arcil - Isibars Limited Trust(hereinafter referred to as Arcil)
Date of instrument Creating the charge	28/03/2007
Amount secured by the charge	Rs. 395.800 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : As specified in Credit Agreement dated 15/05/96 made between Isibars Limited('the Company") and Exim Bank. Terms of repayment : As specified in Credit Agreement dated 15/05/96 made between the Company and Exim Bank. Margin : NIL Extent and operation of the charge : The charge created by the Deed of Hypothecation dated 15/05/96 as modified by Mortgage dated 21/07/1997 and 10/09/1997 shall operate as a continuing security by way of pari-passu first charge on the entire fixed assets and second charge over the current assets for the due repayment by the company to Exim Bank of the Loan of USD 6.09 mn togather with payment of interest and all other monies payable by the company to Exim Bank in terms of the Credit Agreement dated 15/05/96. Other : Nil
Date of instrument modifying the charge	11/09/1997
Particulars of the present modification	By the Assignment Agreement dated 28.03. 2007, Exim Bank, as the true, legal and beneficial owner of the Dollar Loan of USD 6.09 mn .and for the consideration therein mentioned and upon terms and conditions set forth therein, unconditionally and irrevocably sold, assigned, transferred and released to and unto Arcil u/s. 5 of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. Please refer to Annexure 2 -Present Modification.

Un-audited financial results for the quarter and half year ended 30^th September, 2010

(Rs. In millions)

Particulars	Quarter Ended 30.09.2010 (Unaudited)	Half Year Ended 30.09.2010 (Unaudited)
(a) Net Sales/ Income from operation	53705.100	93321.200
(b) Other Operating Income	71.000	81.300
Total Income	53776.100	93402.500
2. Expenditure
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P.	(7786.700)	(3993.900)
b. Consumption of Raw-Materials	39396.300	62930.900
c. Purchase of Traded Goods	3745.100	3745.100
d. Power and Fuel	9205.800	17291.400
d. Employees Cost	3854.100	5111.300
e. Depreciation	3392.400	6902.100
f. Other Expenditure	4270.600	7857.300
g. Total	55077.600	99844.300
3. Profit(+)/ Loss(-) from Operations before other Income Interest and Exceptional Item(1-2)	(1301.600)	(6441.800)
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss)	--	--
5. Profit(+)/ Loss(-) before Interest and Exceptional Item	(1301.600)	(6441.800)
6. Interest	1421.300	2867.800
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6)	(2722.800)	(9309.600)
8. Exceptional Items	--	--
9. Profit(+)/ Loss (-) from ordinary activities before Tax (7-8)	(2722.800)	(9309.600)
10. Tax Expenses	--	--
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10)	(2722.800)	(9309.600)
12. Extraordinary Items (Net of Tax Expense Rs.________)	(4.21)	(4.21)
13. Net Profit (+)/ Loss(-) for the period (11-12)	(2765.000)	(9351.800)
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share)	2341	2341
15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year	--	--
16. Earning per Share (EPS)	--	--
a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not annualised)	(0.12)	(0.12)
b) Basic and diluted EPS after extraordinary items for the period,for the year to date and for the previous year (not annualised)	(0.12)	(0.12)
17. Public Shareholding
Number of Shares	12566965	12566965
% of Share holding	51.93	51.93
18. Promoters and promoter group Shareholding
a) Pledged/Encumbered
- Number of shares	90786700	90786700
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	80.69	80.69
- Percentage of shares (as a % of the total share capital of the company)	38.78	38.78
b) Non-encumbered
- Number of shares	21727260	21727260
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	19.31	19.31
- Percentage of shares (as a % of the total share capital of the company)	9.28	9.28

Note :

1. The above results were reviewed by Audit Committee and taken on record by the Board of Directors of the company at its meeting held on 13^th November 2010
2. The company is exclusively in the Steel Business Segment and as such there are no reportable segments as defined by AS-17 on segment repoting, as issued by the Institute of chartered Accountant of India (ISAI)
3. Employees Cost for the quarter and half year ended 30.09.2010 includes write off of VRS Settlement of Turbhe Unit Rs. 2.374 millions
4. Number of Investor Complaints pending as on 30^th September 2010

(I) Pending at beginning of Quarter : Nil

(II) Received during the quarter : 3

(III) Disposed off during the quarter : 3

(IV) Lying unresolved as on 30^th September, 2010 nil

5. Figures for the previous accounting period have been regrouped wherever necessary.

Unaudited Statement of Assets and Liabilities as at 30^th September 2010

Particulars		30.09.2010 (Unaudited)	31.03.2010 (Audited)
Sources of funds
SHAREHOLDERS FUNDS
Share Capital		852.500	819.100
Reserves & Surplus		1566.800	1379.500
LOAN FUNDS
1] Secured Loans		695.300	749.800
2] Unsecured Loans		678.700	571.800
TOTAL		3793.200	3520.200
APPLICATION OF FUNDS
FIXED ASSETS		1698.300	1764.400
INVESTMENT		0.700	0.600
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	426.000	290.000
	Sundry Debtors	186.700	147.400
	Cash & Bank Balances	5.100	1.100
	Other Current Assets	17.400	21.600
	Loans & Advances	504.100	473.500
Less : CURRENT LIABILITIES & PROVISIONS		699.200	712.800
Net Current Assets		440.100	220.800
MISCELLANEOUS EXPENSES		27.900	1.700
Profit and Loss Account		31626.300	1532.700
TOTAL		3793.200	3520.200

AS PER WEBSITE DETAILS:

They manufacture and export stainless steel long products, i.e. stainless steel billets, wire rods, hot rolled round bars, bright round bars, wires etc.

The company, one of the pioneers in stainless steel bars & wires, was established in India in 1957.

Formerly known as Isibars Ltd, They are an IS0-9001/2000 company geared to the highest global standards. They export a large proportion of their production of Bright Round Bars and Wires to the quality-conscious markets of Europe, USA, South East Asia, West Asia, etc.

Their mission is to produce stainless steel long products with a high degree of value addition, and to create and maintain a presence in international markets by forging dynamic long-term relations with customers and stakeholders.

Their vision is to sustain growth and become a major player in the global market for stainless steel products. They strive for excellence, sustainability, value addition and efficiency.

PROFILE :

India Steel Industries, previously called Isibars, has been producing bright bars since 1957. In addition to their bright bar plant in Central Mumbai, in 1990 we set up another plant in Turbhe, Navi Mumbai for the manufacture of stainless steel bright bars. Soon thereafter, the company was listed on the Bombay Stock Exchange with an initial public offer of Rs. 16.700 million, which was heavily oversubscribed.

They integrated backwards into steel melting and hot-rolling by acquiring a plant in Khopoli, and they expanded capacity, upgraded technology and increased product range. They then started a wire division by setting up a wire-drawing plant at Savroli under the name Isinox Steels Ltd. In 1998 we acquired a state-of-the-art bar & rod rolling mill from Pomini S.p.A. of Italy.

Through continuous process and product improvement, and a commitment to customer satisfaction, India Steel is well on its way to becoming a leading global player in stainless steel long products

STEEL MELT SHOP :

The steel melt shop at Khopoli has two melting furnaces, an Induction Furnace and an Electric Arc Furnace.

After melting, the steel is refined in the Ladle Furnace or AOD Converter and sent forward to the Continuous Casting Machine which casts the liquid metal into billets of required dimensions.

India Steel is committed to environmental sustainability, and they have installed a state-of-the-art air treatment system to capture and clean the process-emissions.  Modern and well-equipped testing facilities and adherence to ISO 9001 standards ensure that manufacturing processes are strictly controlled to deliver high-quality steels. 

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. 45.57
UK Pound	1	Rs. 72.50
Euro	1	Rs. 62.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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.