1. Summary Information

		Country	India
Company Name	MUKAND LIMITED	Principal Name 1	Mr. Niraj Bajaj
Status	Good	Principal Name 2	Mr. Rajesh V. Shah
		Registration #	11-002726
Street Address	Bajaj Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai-400021, Maharashtra, India
Established Date	29.11.1937	SIC Code	--
Telephone#	91-22-22021060 / 2281 / 6524 / 3327 / 1025 / 22822222 / 61216666	Business Style 1	Manufacturer
Fax #	91-22-22021174	Business Style 2	Exporter
Homepage	http://www.mukand.com	Product Name 1	Bars, Rods Hot Rolled Coils of Stainless Steel Nickel Chrome Austenitic Type
# of employees	1968 (Approximately)	Product Name 2	Bars and rods of Alloys Steel
Paid up capital	Rs. 787,520,000	Product Name 3	Bars and rods, coils, Other Alloy Steel (CHQ)
Shareholders	Promoters group (55.09%) Public Shareholding (44.91%)	Banking	Allahabad Bank
Public Limited Corp.	YES	Business Period	74 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	Ba [53]
Related Company
Relation	Country	Company Name	CEO
Subsidiary Company	--	Mukand Global Finance Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	13,207,670,000	Current Liabilities	7,568,315,000
Inventories	9,251,604,000	Long-term Liabilities	17,470,563,000
Fixed Assets	24,321,931,000	Other Liabilities	870,301,000
Deferred Assets	000	Total Liabilities	25,909,179,000
Invest& other Assets	1,365,228,000	Retained Earnings	21,449,734,000
		Net Worth	22,237,254,000
Total Assets	48,146,433,000	Total Liab. & Equity	48,146,433,000
Total Assets (Previous Year)	42,485,366,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	25,202,837,000	Net Profit	466,356,000
Sales(Previous yr)	19,817,178,000	Net Profit(Prev.yr)	619,393,000

MIRA INFORM REPORT

Report Date :

18.11.2011

IDENTIFICATION DETAILS

Name :	MUKAND LIMITED [w.e.f. 23.03.1989]
Formerly Known As :	MUKAND IRON AND STEEL WORKS LIMITED
Registered Office :	Bajaj Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.11.1937
Com. Reg. No.:	11-002726
Capital Investment / Paid-up Capital :	Rs.787.520 millions
CIN No.: [Company Identification No.]	L99999MH1937PLC002726
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19254E
PAN No.: [Permanent Account No.]	AAACM5008R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing, Marketing and Exporting of iron and steel products.
No. of Employees :	1968 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba [53]

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

Maximum Credit Limit :	USD 88900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. 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)

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

LOCATIONS

Registered/ Corporate Office :	Bajaj Bhavan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22021060 / 2281 / 6524 / 3327 / 1025 / 22822222 / 61216666
Fax No.:	91-22-22021174
E-Mail :	mukandop@bom3.vsnl.net.in investors_cell@mukand.com info@mukand.com co.secretary@mukand.com kjmallya@mukand.com
Website :	http://www.mukand.com
Factory 1 :	Thane-Belapur Road, Dighe, P.O. Kalwe, District Thane-400605, Maharashtra, India
Tel. No.:	91-22-25347373 / 25348181 / 21727500
Fax No.:	91-22-25410291
E-Mail :	mukandop@bom3.vsnl.net.in
Factory 2 :	Ginigera - 583 228, Karnataka, India
Sales – European Union :	Kella 13-Batschuns 6832 Zwischenwasswr, Osterreich – Austria
Tel. No.:	+43 (0) 5522 45839
Fax No.:	+43 (0) 5522 45839
E-Mail :	gerold.rinderer@mukand.com
Branch Office :	Located at: Kolkata Delhi Chennai Bangalore Vishakhapatnam

DIRECTORS

As on 31.03.2011

Name :	Mr. Niraj Bajaj
Designation :	Chairman and Managing Director
Name :	Mr. Rajesh V. Shah
Designation :	Co-Chairman and Managing Director
Name :	Mr. Dhirajlal S. Mehta
Designation :	Director
Name :	Mr. Suketu V. Shah
Designation :	Joint Managing Director
Name :	Mr. Vinod S. Shah
Designation :	Non Executive Director
Name :	Dr. N.P. Jain, IFS (Retired)
Designation :	Director
Name :	Mr. Narendra J. Shah
Designation :	Director
Name :	Mr. N.C. Sharma
Designation :	Director
Name :	Mr. Prakash V. Mehta
Designation :	Director
Name :	Mr. Pradip P. Shah
Designation :	Director
Name :	Mr. Amit Yadav
Designation :	Director

KEY EXECUTIVES

Name :	Mr. K.J. Mallya
Designation :	Company Secretary
The Management Team:	Corporate
Name :	Mr. Niraj Balaj
Designation :	Chairman and Managing Director
Name :	Mr. Rajesh V Shah
Designation :	Co-Chairman and Managing Director
Name :	Mr. Suketu V Shah
Designation :	Joint Managing Director
Name :	Mr. S B Jhaveri
Designation :	Chief Financial Officer
	Steel Division
Name :	Mr. I M D’Costa
Designation :	Technical Director (Steel Plant, Thane)
Name :	Mr. R Sampath Kumar
Designation :	Chief Executive (Steel Plant, Ginigera)
Name :	Mr. A M Kulkarni
Designation :	Chief Executive (Steel Plant, Thane)
Name :	Mr. C H Sharma
Designation :	Technical Advisor, Steel
Name :	Mr. Sidharth Shah
Designation :	Chief of Materials Management
Name :	Mr. V M Mashruwala
Designation :	Chief of Marketing (Alloy and Stainless Steel)
Name :	Dr. Amit Ganguly
Designation :	Chief of Business Excellence
	Industrial Machinery Division
Name :	Mr. R Jagannathan
Designation :	Chief Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12156155	16.63
Bodies Corporate	28125973	38.47
Sub Total	40282128	55.09
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	40282128	55.09
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6027	0.01
Financial Institutions / Banks	109644	0.15
Insurance Companies	7452308	10.19
Foreign Institutional Investors	2031703	2.78
Sub Total	9599682	13.13
(2) Non-Institutions
Bodies Corporate	4565676	6.24
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	9994089	13.67
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4897112	6.70
Any Others (Specify)	3775442	5.16
Clearing Members	3533108	4.83
Non Resident Indians	242334	0.33
Sub Total	23232319	31.78
Total Public shareholding (B)	32832001	44.91
Total (A)+(B)	73114129	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	73114129	-

BUSINESS DETAILS

Line of Business :

Manufacturing, Marketing and Exporting of iron and steel products.

Products:

Product Description	ITC Code
Bars and rods of Alloys Steel	7228 30 29
Bars and rods, coils, Other Alloy Steel (CHQ)	7227 90 40
Bars, Rods Hot Rolled Coils of Stainless Steel Nickel Chrome Austenitic Type	7221 00 12
Overhead Traveling Crane on Fixed Support	8426 11 00

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bars, Rods and Coils of Special and Alloy Steel and Stainless Steel	Tonnes	640000#	342024**
Electrical Energy (Captive Power Generation)  At Dighe – Fuel Oil based At Ginigera – Gas Based	Tonnes	22.10 M.W. 15.00 M.W.	82.70 Million KWH 6.67 Million KWH
Semi Finished Billets and Blooms	Tonnes	970000##	565413@@

Note :

** Steel production includes 5,334 Tonnes (7,591 Tonnes) converted outside.

@@ Includes 204,301 Tonnes (182,857 Tonnes) converted from customers’ material.

# Installed capacity of Bar Rods and Coils includes 140,000 Tonnes of installed capacity from Ginigera plant allotted for products of Mukand Limited under Strategic Alliance Agreement with Kalyani Steels Limited

## Installed capacity of Semi Finished Billets and Blooms at Ginigera of 700,000 Tonnes, includes 289, 660 Tonnes of capacity allotted for products of Kalyani Steels Limited under Strategic Alliance Agreement.

GENERAL INFORMATION

No. of Employees :

1968 (Approximately)

Bankers :

• Allahabad Bank
• ABN Amro Bank N.V.
• Bank of Baroda, Khand Bazar
• Dena Bank
• Bank of India, Fort Branch, Mumbai
• HDFC Bank Limited
• Indian Overseas Bank
• IDBI Bank, Nariman Point Branch, Mumbai
• ICICI Bank Limited, Backbay Reclamation Branch, Mumbai, Maharashtra, India
• Punjab National Bank
• State Bank of India
• Axis Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
a) Debentures	488.225	607.480
b) Long Term Loans in Indian Rupees from: #
- Financial Institutions	2238.323	2391.572
- Banks	6981.434	6538.803
- Companies	249.312	303.833
- Housing Development Finance Corporation Limited	0.000	375.000
c) Working Capital Loans from Banks	3951.238	3125.232
Total	13908.532	13341.920

# Includes funded interest term loans in respective categories.

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Fixed Deposits	1720.148	1421.436
Short Term Loans from Companies	1818.700	2045.100
Sales Tax Deferment Loan	23.183	23.183
Total	3562.031	3489.719

Banking Relations :	--
Auditors :
Name :	Hari Bhakti and Company Chartered Accountants
Memberships:	Confederation of Indian Industry
Parent company:	Mukand Holdings and Finance Limited
Subsidiaries :	Mukand Global Finance Limited Mukand International Limited Vidyavihar Containers Limited (Formerly Known as Nathani Steel Limited) Mukand Vijayanagar Steel Limited Mukand International FZE (MIFZE) [up to 09.01.2011]
Step-down Subsidiaries :	Mukand International FZE (MIFZE) [up to 08.01.2011]
Other Related Parties :	Mukand Engineers Limited Bombay Forgings Limited Stainless India Limited Hospet Steels Limited Kalyani Mukand Limited Lineage Investments Limited Catalyst Finance Limited Econium Investments and Finance Limited Fusion Investments and Financial Services Limited Primus Investments and Finance Limited Conquest Investments and Finance Limited Jamnalal and Sons Private Limited (JSPL),
Joint Ventures :	Mukand Vini Mineral Limited (MVML) Mukand Bekaert Wire Industries Private Limited (upto 28.03.2011).

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
118,000,000	Equity Shares	Rs.10/- each	Rs.1180.000 millions
7,000,000	Preference Shares	Rs.10/- each	Rs. 70.000 millions
	Total		Rs.1250.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
73,159,805*	Equity Shares	Rs.10/- each	Rs.731.599 millions
5,626,320	0.01% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 56.263 millions
	Total		Rs.787.862 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
73,114,129	Equity Shares	Rs.10/- each	Rs.731.141 millions
	Add: Forfeited Shares, amounts originally paid up		Rs. 0.116 million
5,626,320	0.01% Cumulative Redeemable Preference Shares fully paid up	Rs.10/- each	Rs. 56.263 millions
	Total		Rs.787.520 millions

* Includes 28031 Equity Shares which have been kept in abeyance by the Stock Exchange Authorities.

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		787.520	787.520	787.520
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21449.734	17724.792	17190.413
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22237.254	18512.312	17977.933
LOAN FUNDS
1] Secured Loans		13908.532	13341.920	12398.588
2] Unsecured Loans		3562.031	3489.719	1522.031
TOTAL BORROWING		17470.563	16831.639	13920.619
DEFERRED TAX LIABILITIES		146.528	0.000	594.622
TOTAL		39854.345	35343.951	31898.552
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24321.931	20259.863	18883.462
Capital work-in-progress		236.457	1218.209	2717.728
INVESTMENT		1096.677	1061.762	1049.392
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9251.604	7711.636	6227.423
	Sundry Debtors	8733.221	7438.974	6414.879
	Cash & Bank Balances	1043.829	1018.259	1044.378
	Other Current Assets	0.000	0.000	44.671
	Loans & Advances	3430.620	3740.247	3717.555
Total Current Assets		22459.274	19909.116	17448.906
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2721.265	2470.766	3381.815
	Other Current Liabilities	4847.050	3922.394	4129.865
	Provisions	723.773	748.255	739.162
Total Current Liabilities		8292.088	7141.415	8250.842
Net Current Assets		14167.186	12767.701	9198.064
Deferred Revenue Expenditure		32.094	36.416	49.906
TOTAL		39854.345	35343.951	31898.552

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	25202.837	19817.178	19188.903
		Other Income	787.821	312.215	295.027
		TOTAL (A)	25990.658	20129.393	19483.930
Less	EXPENSES
		Raw Material Consumed	13791.394	8633.189	10247.292
		Operating and other expenses	10645.608	9329.079	8847.215
		Purchase of goods for trade (including semi-finished)	349.600	447.919	251.919
		Expenditure transferred to Capital Accounts/ Capital Work-in-Progress [including Trial Run Expenditure (net)]	[19.834]	[10.645]	[109.847]
		Variation in opening and closing stock	[1694.186]	[1041.091]	361.110
		TOTAL (B)	23072.582	17358.451	19597.689
	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2918.076	2770.942	[113.759]
Less	FINANCIAL EXPENSES (D)		1626.433	1515.462	1352.346
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1291.643	1255.480	[1466.105]
Less/ Add	DEPRECIATION/ AMORTISATION (F)		678.069	635.462	578.419
Less/ Add	Exceptional Items (net)		0.000	0.000	[414.815]
	PROFIT/[LOSS] BEFORE TAX (E-F) (G)		613.574	620.018	[2459.339]
Less	TAX (H)		147.218	0.625	[585.972]
	PROFIT/[LOSS] AFTER TAX (G-H) (I)		466.356	619.393	[1873.367]
	Prior Period Adjustments (net)		[0.070]	(0.641)	(14.672)
	Excess/ (Short) provision for tax		0.282	1.174	0.956
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		300.629	0.000	1230.383
Less	APPROPRIATIONS
		Transferred from Debenture Redemption Reserve	62.500	125.000	62.500
		Transferred to Debenture Redemption Reserve	[22.356]	(58.750)	--
		Proposed Preference Dividend	[0.006]	(0.006)	(0.006)
		Proposed Equity Dividend	[73.114]	(73.114)	--
		Tax on Preference/ Equity Dividend	[11.862]	(12.427)	(0.001)
		Transfer to General Reserve	[420.000]	(300.000)	594.207
	BALANCE CARRIED TO THE B/S		302.359	300.629	0.000
	EARNINGS IN FOREIGN CURRENCY
		Export (FOB)	1535.369	770.560	1629.844
		Income from engineering contracts	0.000	0.000	13.434
		Dividends	11.405	18.169	0.000
		Others	20.081	1.364	1.537
	TOTAL EARNINGS		1566.855	790.093	1644.815
	IMPORTS
		Raw Materials	4684.074	3604.911	4682.857
		Stores, Spare Parts, Components and Fuel	538.177	491.210	483.167
		Goods for trade	63.028	0.582	49.025
		Capital Goods	15.914	14.679	195.608
	TOTAL IMPORTS		5301.193	4111.382	5410.657
	Earnings / Loss Per Share (Rs.)		6.38	8.48	[20.14]

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter	30.09.2011 2^nd Quarter
Net Sales	6806.550	5911.190
Total Expenditure	6141.580	5815.480
PBIDT (Excl OI)	664.970	95.710
Other Income	5.880	12.020
Operating Profit	670.850	107.730
Interest	425.860	438.190
Exceptional Items	0.000	[190.560]
PBDT	244.990	[521.030]
Depreciation	160.690	143.560
Profit Before Tax	84.290	[664.590]
Tax	25.770	[172.290]
Provisions and contingencies	0.000	0.000
Profit After Tax	58.520	[492.290]
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	58.520	[492.300]

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.79	3.08	(9.61)
Net Profit Margin (PBT/Sales)	(%)	2.43	3.13	(12.82)
Return on Total Assets (PBT/Total Assets}	(%)	1.31	1.54	(6.77)
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	(0.14)
Debt Equity Ratio (Total Liability/Networth)		1.16	1.29	1.23
Current Ratio (Current Asset/Current Liability)		2.71	2.79	2.11

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject, a multi-product company was incorporated on 29^th November 1937 at Mumbai, multi-division company involved in the business of Steel Manufacturing, Industrial Machinery Manufacturing and Highway Construction. The Company is a supplier of alloy steel to the automobile and auto component industry and a leader in the manufacture of high grade stainless steel in India. With manufacturing facilities in both Dighe, Thane - Maharashtra and Ginigera, Karnataka, Mukand produces hundreds of grades of steel long products in the form of wire rods, bars, wires and bright bars. Mukand Holdings Private Limited was incorporated as an investment company and became as a subsidiary of Mukand in the year 1979, also became as a public limited company with effect from 30th June of the same year 1979. Ladle refining furnace and the vacuum degassing station of the company were successfully commissioned in the year 1983. The Research and Development (R and D) division of the company was formulated in January of the year 1984 to bailout the company's growth. Basic engineering package was received from BBC Brown Boveri, Switzerland and the whole project was implemented during the year 1986. The R and D unit of the company had designed and installed a pilot plant in the year 1987 for production of larger quantities of coloured stainless steel components. The oxygen top and bottom blown converter was installed. The dust collection system was also installed and commissioned during the period of 1988. In 1989, Mukand Dravo Wellman Private Limited became a subsidiary of the company. During the year 1991, orders were received from SAIL for supply of Oxygen furnace equipment for its Rourkela steel plant modernisation project. The Machine Building division of the company had received preliminary acceptance certificate in the year 1992 for successful commissioning of 11,000 TPA of equipment for medium merchant and structural mill project of Visakhapatnam steel plant. In order to concentrate on the main business, the company transferred the business of Engineering Construction Division to Mukand Engineers Limited in the year 1993. The Rolling Mill division of Mukand was set up and commissioned solution annealing furnaces and related downstream facilities in the year of 1995 for coil finishing. Mukand Industrial Machinery Limited became a wholly owned subsidiary of the company with effect from 31st March of the same year 1995. The Company had entered into technical know-how agreement in the year 1996 with a leading Japanese consultancy firm which would study the company's operations and would implement know-how include training of personnel by the Japanese. During the year 1999, Mukand had developed a series of innovative technological processes to cope with the current slump in the industry. The Company, Satyam Info way and M K J Enterprises had entered into a joint venture agreement in 2000 to launch a new company for an e-commerce global portal or web marketplace for steel trading. During the year 2003, the company became as potentially sick industrial company, after two years, Mukand was ceased to be a potentially sick industrial company in the year 2005.In December of the year 2005, the steel plant in Dighe, Thane was awarded the Total Productive Maintenance (TPM) excellence award by the Japan Institute of Plant Maintenance. During the year 2006-07, the company for the first time manufactured and supplied a 500 ton capacity EOT crane, 100 ton hammer head crane and a 30 ton electric level luffing crane under Industrial Machinery Division. Mukand had inked an agreement with NV Bekaert SA, Belgium in September of the year 2007 to form joint venture (JV) company for produce stainless steel wires in India for global markets. The Company had secured worth of Rs.1.54 billion order from SAIL-IISCO in December of the year 2007 for the process of expanding its capacity at Burnpur in West Bengal. Mukand had signed a joint venture agreement with Vini Iron and Steel Udyog in September of the year 2008 to undertake captive mining of coal block in the State of Jharkhand. The Company plans to set up a stainless steel wire manufacturing facility near Nashik with total investment of Rs.3 billion.

Performance:

The gross sales and other income for the year marked a 31% increase at Rs.28,404 millions as against Rs.21,729 millions over the previous year.

The profit before tax was marginally lower at Rs.613.58 millions as compared to Rs.620.02 millions in the previous year.

Revenues from export of specialty steel products of the Company almost doubled at Rs.1,535 millions as against Rs.771 millions of the previous year.

During the second quarter of the year, the Company completed the transfer and assignment of one twelfth of its lease hold rights of the land situated at Dighe, Thane and the net income arising from this transaction has been utilized for operations.

The salient features of the operating performance of each segment during the year are discussed in the following paragraphs.

Specialty Steel Division:

The gross sales of alloy, special and stainless steel long products increased by 37% at Rs.24,620 millions compared to Rs. 17,954 millions in the previous year. This increase is due to the rise in the volume of sales by 8% over the previous year. Increase in sales of high value products as a result of product development and an increase in selling price also contributed to the increase in sales.

Commodity prices rose sharply all over the world during the year which included prices of inputs required for making steel, viz., iron ore, metallurgical coke, scrap, nickel, fuel oil, ferro-alloys, etc.. The volatility of the Indian Rupee against the US Dollar also resulted in cost escalations. The overall impact of these factors amounted to a 42% increase in costs to the Company.

During the year , the Company increased its heat treatment and quality assurance facilities at its steel plant at Dighe, Thane.

At the Steel Plant at Ginigera, Karnataka, the Company installed a 15 mega watt captive power plant based on waste gases emitted from the mini blast furnace. The successful trial runs were conducted from 5th January 2011 and the Plant was commissioned in May 2011.

The market for specialty and alloy steel is likely to remain positive in the long run. The domestic automobile sector continues to move forward on the growth trajectory while the auto component sector is likely to witness a surge in its export markets with global automobile majors increasing its dependency on sourcing from countries like India. The Company has received approvals from renowned domestic and international customers to supply various grades of specialty steels. The Company has also developed several more grades of ball bearing steel which were hitherto imported.

The revival of the global economies further activated the markets for stainless steel products which are largely dependent on exports. The Company successfully tapped markets in the USA for export of pump shaft quality bars. It also exported hardened and tempered steel products to various countries. The Company exhibited its steel making and rolling prowess in the ‘Düsseldorf Steel Wire Show’, to buyers in the European markets and received encouraging results. To take advantage of the increased momentum in the stainless steel business, the Company is enhancing its downstream capacities to better suit the new global markets.

With the commissioning of the enhanced steel making and rolling capacity at its facilities in Dighe, Thane and Ginigera, Karnataka, the Company is poised to achieve its optimum utilization. The Company is continuously looking at measures to improve its margins through increasing the sales of value added steel products, widening the distribution network, and developing new products and strategic tieups with global automobile and auto component manufacturers operating in the country. The Company is confident that combined with its core strengths of being a one-stop-shop for all grades and sizes of specialty steel long products, flexibility in its manufacturing capabilities and expertise in developing new grades of steel / steel products within a short period of time, the Company will continue to consolidate and grow its top and bottom line.

Industrial Machinery Division:

Although the Industrial Machinery Division had adequate order booking at the beginning of the year, the turnover of this division was lower as many of the major customers, particularly, in the steel sector, delayed their projects. This resulted in the lower sales turnover of the division by 10% at Rs. 2,850 millions as compared to Rs.3,177 millions in the previous year. The division continues to hold a healthy order book for the year in progress at an aggregate of Rs.3,612 millions.

Some of the major equipment manufactured and commissioned by the division in 2010-11 are :

• 2nd level luffing traveling tower crane for a large shipyard,

• Electrical level luffing cranes for ports,

• Major copper plant equipment for Copper Mines in Zambia,

• Mould assemblies and mould oscillators for the continuous casting machine for IISCO, and

• Completion of electrical works for the first unit of 500 MW at NTPC, Jajjhar and third unit of Simhadri Power Plant.

During the year , the division booked orders for cranes, port equipment and copper plant equipment. The division along with IHI of Japan will jointly bid for tenders for projects in material handling equipment in India as well as overseas. The division is also implementing large projects within the country jointly with Mukand Engineers Limited

The markets for steel plant equipment that remained sluggish during the year are expected to improve in the second half of the year in progress. Meanwhile the division is concentrating on measures to reduce its costs to improve its margins and compensate for the lower realization.

Road Construction Division:

As the project is nearing completion, the revenue from this Division was lower for the year of Rs. 146 millions as compared to Rs.285 millions in the previous year. As on March 31, 2011, the Division completed 298 km of two lanes of the main carriage way and 71 km of service roads; representing 100% of the total work of both the Projects.

The “Takeover certificates” for both the projects, Kanpur and Varanasi, have been received from the National Highways Authority of India. Division has also received “Defect Liability Certificate” in April 2011 for the Project near Varanasi, denoting completion of the said project.

Joint Ventures:

For stainless steel wires:

Mukand Bekaert Wire Industries Private Limited was formed as a 50:50 venture of NV Bekaert SA, Belgium and Mukand Limited in September 2007, to manufacture stainless steel wires for the domestic and international markets.

In the year 2008-09, in the project execution stage, the JV issued additional equity over two phases. Although the Company continues to hold its original equity of Rs.130 millions, it did not subscribe to the subsequent increases in share capital in view of its on-going Capital Expenditure programme and other commitments, resulting in a revised shareholding pattern of 86:14 with the Company holding 14%.

In light of the above, the joint venture agreement has been terminated with effect from 29th March 2011 but the Company continues to have one director on the Board of the JV Company. The working relationship between the promoter group of companies also remains strong with the Company continuing to be the supplier of stainless steel wire rods to this venture.

For coal mining:

The Ministry of Coal, Government of India, allotted the Rajhara North (Central and Eastern) Non-Coking Coal Block bearing reserves of 17.09 Millions Tonnes in Jharkhand. A Joint Venture Company (JVC) was formed to mine this coal. Company’s share of coal in the JVC is 10.05 Millions Tonnes. The JVC has submitted the revised Mining Plans to Ministry of Coal. Simultaneously, settlement towards costs of infrastructure with Central Coalfields Limited is being actively pursued with the Ministry of Coal.

Management Discussion and Analysis

Towards excellence

The Company has qualified for the ISO 14,001 : 2004 standard from Bureau Veritas Corporation reflecting its conformance to environmental norms (EMS). In the year 2011, the Ginigera, Karnataka facility won the international safety award with merit from the British Safety Council, London. The Company received the Varroc Excellence Award – Bronze in the raw material category for sustaining excellence; and the regional export award for our outstanding export performance from the Engineering Export Promotion Council in the category of star performers in product group for 2008 – 2009. All other existing ISO systems have been recertified, indicating the Company’s adherence to quality management norms.

Specialty steel

The steel division continued to focus on optimizing the new capacities made available as a result of the capital expenditure incurred by the Company in the previous years. The Alloy steel business of the Company is largely dependent on the automobile industry which continues to grow, especially in India. Infact the Indian automobile industry marked a significant growth even as the industry in other parts of the world was negatively affected by the global meltdown. The revival of the global economies that is envisaged by industry watchers will result in the revival of global markets. Attractiveness of the Indian domestic market coupled with the stagnation of the markets in Europe, US and Japan is also having a positive impact on the Indian markets with global automobile companies shifting new capacities and flow of capital to the Indian markets.

The Company produces alloy steel using the mini blast furnace route with iron ore and coke as the major inputs. The Company experienced erratic supplies from the mines where they have long term contracts under the Strategic Alliance Agreement, on account of issues relating to price, environment and logistics resulting in the Company being forced to marginally slowdown its steel production.

The stainless steel segment is largely dependent on the export market as India is yet to become a large consumer of stainless steel. The Company re – entered the US market after a long gap with the export of pumpshaft- quality bars with stringent quality requirements and consolidated this market in a short span of time. The Company took advantage of the commissioning of the hardening and tempering furnaces and developed new products for new markets in Europe, US and Middle - East.

The steel industry witnessed an increase of capacities especially in rolled products, resulting in pressures on the pricing of steel products of the Company. However, it also witnessed a simultaneous growth in the overall steel markets.

Product development is an essential part of any successful and progressive company. The Company is well known for having developed several import substitutions and new products like the low Nickel, austenitic stainless steel to suit the buying power of developing nations. This low nickel grade of stainless steel has now become a world standard by assuming nearly 10% of the total stainless steel produced in the world. The Company is now engaged in developing high quality alloy steels for manufacture of all types and components of bearings and micro alloyed steels which help reduce processing costs of the customer and the component weight.

The continual rise in commodity prices is causing stress to the steel industry which is dependent on inputs such as nickel, iron ore, metallurgical coke, chromium, furnace oil and other alloys. The Company was forced to increase its selling prices on two occasions during the year , but the time lag between the increase in input costs and selling prices restricted the growth in the bottom line.

The floods in Australia during December / January, resulted in a sharp rise in prices of coking coal / low ash metallurgical coke as Australia is the largest producer / exporter of coking coal. The country had envisaged restoring normalcy to the trade by April 2011, which would have resulted in softening of the prices, but the heavy rains in the month of March 2011 delayed this further.

Nature’s fury also hit scrap prices due to the closure of many scrap yards in Europe and the US as a result of the heavy snow fall in December / January. Other commodities such as Nickel, crude oil / furnace oil etc too saw a rise in the year , although this was not related to any natural calamity.

Increase in commodity prices naturally results in higher costs for the Company. The measures taken by the Company in line with energy conservation, utilizing the waste iron ore fines by setting up a sinter plant and other cost reduction steps will bring down the costs of the Company’s products. Increase in the volume of sales and greater demand for the Company’s high value products also contributed to the top and bottom line.

The Company is working on the specific approvals required to start operating the non coking coal mine in Jharkhand .

Industrial Machinery

The growth in the Industrial Machinery division of the Company witnessed a slump as a result of the slow down by its customers in executing their projects. The Company is the industry leader in the manufacture of heavy duty electric overhead traveling cranes but orders for such cranes too witnessed a slowdown in the year. The Company expects an improvement in the second half of the year in progress.

During the year, the Company executed a few noteworthy orders such as the second 60 metre boom level luffing traveling tower crane for a shipyard in South India. The first such crane was commissioned by the Company in the previous year and these two cranes are among the largest capacity cranes in this category in India.

In the year in progress, the Company will jointly bid with IHI, Japan for some of the tenders in India. The Company also executed projects, jointly with Mukand Engineers Limited, for large public sector enterprises.

The Company continues to lay emphasis on cost reduction, product development and responding to market changes effectively ensuring increased value for all its stake holders.

Towards Sustainability

Several decades ago when the company imported a dust collector from Sweden, sustainability and green growth were not buzz words in any industry. They imported the dust collector simply because they wanted to ensure that their activities caused minimum damage to the environment.

Today, as the world moves closer to depleting almost all the natural resources of their planet; green growth, sustainability and environment consciousness are top priorities for almost all industries.

In an industry such as theirs, green product development brings with it unique challenges. Going green perhaps is not just a challenge, but a near improbability. Yet their own eco consciousness, spurred by the inroads made by their customers, encouraged us to appraise the greenable attributes of their processes and products.

It is common knowledge that steel making involves several polluting processes and also deplete natural resources. But their commitment and responsibility to the future generations force us to innovate or adopt alternate processes that are less polluting while controlling or minimizing the consumption of natural resources essential for steel making.

The setting up of the power plant based on waste gases emitted from the mini blast furnace is one such endeavour. They are also setting up an iron ore drying unit using energy from waste gases which will result in reducing the coke consumption. Several measures to reduce energy consumption have already been adopted or are in the process of being adopted at both facilities. At their facility in Dighe, Thane, they adopted newer annealing processes that eliminated the acid pickling of wire rods prior to annealing. They also expanded their shot blasting facilities which is more environment friendly than the conventional pickling process.

The steel industry lacks a green heritage as its processes and products were developed before sustainability was a concern. However, their commitment to achieving excellence through a cleaner and a more sustainable environment has led us to integrate new technologies that will facilitate this.

Although some of these measures are simple tiny steps, together and over a period of time they sure make a positive impact. Measures such as replacing the roofing sheets at their workshops with transparent sheets at regular intervals for optimum use of natural light, changing to CFL / LED lighting, installing timers to their street lights and automatic shut off systems, adopting efficient burner operations, installing solar heating, etc. have all contributed in many little ways towards energy conservation.

Conserving water, one of the depleting natural resources, continues to remain one of their priorities. They monitor its usage on a daily basis and control all excesses while adopting measures such as rain water harvesting, recovering, treating and recycling waste water, installing waterless toilets, etc..

Increasing their green cover by planting thousands of trees and converting both their facilities, at Dighe, Thane and Ginigera, Karnataka, into mini forests was a baby step towards awakening their consciousness. They are also in the process of setting up a bio gas plant based on bio wastes from their canteens and gardens. This will not only bring down consumption of energy from conventional sources but also help in costs saving from waste disposal efforts.

Their commitment to sustainability is not limited to the industrial processes and products but is evident across all their actions. Switching off the electricity when not required, using paper only if absolutely essential and reusing it wherever possible, minimizing the consumption of bottled water there by reducing the use of plastic, are some of the apparent changes they are working towards in their everyday life. It is a commitment to bring about a cultural change in the way each of us live their lives so that they conserve and preserve this planet for future generations.

Today, green growth has not only risen to the top of the agenda for many businesses but even the ministry of corporate affairs has adopted a green initiative by permitting paperless compliances by companies. A step that will save a million trees and preserve the green cover.

STANDALONE  FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30,2011

Rs.in millions

	Particulars	Three months ended 30.06.2011
(1)	INCOME
	Net Sales and Other Operating Income
a)	Gross Sales	7337.273
	Less : Excise Duty Recovered	643.534
	Net Sales	6693.739
b)	Other Operating Income	112.808
	Net Sales and Other Operating Income	6806.547
(2)	EXPENDITURE
a)	(Increase) / Decrease in Stock in Trade	[634.817]
b)	Consumption of Raw Materials	3973.151
c)	Purchase of Goods for Trade	23.453
d)	Stores, Spares, Components,  Tools, etc. consumed	974.463
e)	Staff Costs	359.633
f)	Power & Fuel	533.547
g)	Other Expenditure	912.157
h)	Depreciation /Amortisation	160.694
	Total Expenditure	6302.281
(3)	Profit from Operations before Write Offs, Other Income &  Interest	504.266
(4)	Bad Debts / Advances written off	-
(5)	Profit from Operations before Other Income &  Interest	504.266
(6)	Other Income :
a)	Net Income from transfer of Land
b)	Other Income	5.881
(7)	Finance and Lease Charges  (net)	[425.857]
(8)	Profit from ordinary activities before Tax	84.290
(9)	Less : Provision for Taxation	25.766
(10)	Profit from  ordinary  activities  after Tax	58.524
(11)	Prior Period Adjustments (net)	-
(12)	Net Profit for the period	58.524
(13)	Paid-up Equity Share Capital (Face value Rs 10/- per share)	731.257
(14)	Reserves (excluding Revaluation Reserve)	-
(15)	Earnings per Share (EPS)  - Rs	0.80
(16)	Public Shareholding
	Number of Shares	32832001
	Percentage of Shareholding	44.91%
(17)	Disclosure  in respect  of  pledged shares of Promoters and Promoter Group
	Shares held by Promoters & Promoter Group - Nos. (A)	40282128
	Percentage of Total Share Capital	55.09%
	Pledged / Encumbered - No. of Shares	16935735
	Percentage of Total Share Capital	23.16%
	Percentage of (A)	42.04%
	Non Encumbered - No. of Shares	23346393
	Percentage of Total Share Capital	31.93%
	Percentage of (A)	57.96%
	SEGMENT REVENUE (net of Excise Duty)
1)	Steel	6145.652
2)	Industrial Machinery	584.077
3)	Road Construction	-
4)	Other Products	43.506
	Sub-total	6773.235
	Less : Inter Segment Revenue	[79.496]
	Total Segment Revenue  (net of Excise Duty)	6693.739
	SEGMENT RESULT
1)	Steel	394.897
2)	Industrial Machinery	112.359
3)	Road Construction	[12.154]
4)	Other Products	19.765
	Less : Inter  segment margin	[4.527]
	Total Segment Result	510.340
	Add / (Less) :
	Other net un-allocable (expenditure) / income	[0.193]
	Profit before Interest	510.147
	Add / (Less) :
	Finance /  Lease charges  (net)	[425.857]
	Profit after Prior period adjustments and before tax	84.290
	Capital Employed as on 30.06.2011
1)	Steel	31386.055
2)	Industrial Machinery	4012.344
3)	Road Construction	1829.478
4)	Other Products	522.589
5)	Unallocable (net)	[15282.394]
	Total Net Capital Employed	22468.072
	# Includes further revaluation made in Mar'11

Notes:

• Management's response to the qualifications of the auditors on the financial statements for the year ended 31.03.2011 :

1. Advances due from and investments made in Vidyavihar Containers Limited (VCL), aggregating Rs.1097.599 Millions as at 31st March 2011 has reduced to Rs.822.599 Millions as at 30th June 2011. The Company, barring any significant uncertainties in future, relies upon the VCL management's estimation of realizable values of the financial assets of VCL, and the Company also relies upon VCL management's estimation of its additional expected realization from its real estate development arrangement with a developer, to be able to recover its Exposures;

2. Investments made in Mukand Global Finance Limited (MGFL), aggregate Rs. 262.495 Millions as at 31st March 2011. The Company is in the process of disposing off this investment and is negotiating the sale;

3. The debts due from Bombay Forgings Limited (BFL), aggregating Rs.669.794 Millions as at 31st March 2011 has reduced to Rs.669.274 Millions as at 30th June 2011. During the quarter, Company has given advances towards procurement of scrap aggregating (net) Rs.26.251 Millions. The Company, considering its long-term view on the Exposures, barring any significant uncertainties in future relies upon the valuation of unencumbered assets of BFL as at 31st March 2011 at Rs.755.700 Millions and the projected future earnings from the business activities of BFL which are considered by the management to be adequate.

4. The debts and advances due from Stainless India Limited. (SIL), aggregating Rs.396.599 Millions as at 31st March 2011 has reduced to Rs.392.996 Millions as at 30th June 2011. The Company, barring any significant uncertainties in future relies upon the estimated realizable value of the unencumbered assets of SIL as at 31st March 2011 at Rs.494.969 Millions which are considered by the management to be adequate.

5. In view of the substantially large outstanding claims by the Company for incremental jobs executed, escalations and time-overruns for Road Construction Division, amounting to Rs.1147.274 Millions as at 31st March 2011, (Rs.1147.274 Millions as at 30th June 2011) losses currently expected are recognized as per the judgment of the management and the shortfall, if any, will be adjusted only on final settlement of claims which is expected to be settled progressively by 31st March 2012.

• Provision for taxation includes provision for current tax, deferred tax and wealth tax.

• Figures in respect of previous quarter / year have been regrouped / recast wherever necessary.

• During the quarter, 32 complaints were received from investors which have been resolved. No complaints of investors were pending at the beginning of the quarter as well as at the end of the quarter.

• The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 27th July 2011. Statutory Auditors have carried out a "Limited Review" of the financial results shown above.

Contingent Liabilities

Contingent Liabilities not provided for

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Disputed matters in appeal/contested in respect of:
-Income Tax	208.330	203.566
- Excise Duty, Customs Duty etc.	27.561	27.231
- Sales Tax, Works Contract Tax etc.	28.321	141.189
- Other matters	2.416	2.416
(ii) Claims against the Company not acknowledged as debts as these are disputed and pending disposal at various fora. For items (i) and (ii) The Company has taken legal and other steps to protect ifs interest in respect of these matters, which is based on legal advice and/or precedents in its own/other cases, It is not possible to make any further determination of the liability which may arise in these matters.	172.614	168.383
(iii) Bills discounted with the Bankers and others-Sale Bills discounted	172.699	132.170
(iv) Guarantees and Counter guarantees given by the Company on behalf of
- Other Companies	189.576	517.539
(v) Bonds / Undertakings given by the Company under concessional duly/ exemption to Customs / Excise Authorities (Net of redemption applied for)	6.569	6.569
(vi) Bonds given by the Company against import of machinery under EPCG Scheme. (Net of redemption applied for)	193.702	256.004
Lenders shall have a right of recompense upto 12% per annum in excess of the effective IRR charged in FRP for 8 years commencing from the date of approval.

FIXED ASSETS:

• Freehold Land
• Leasehold Land
• Railway Siding
• Buildings and Roads
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Intangible Assets - Software

WEBSITE DETAILS:

HISTORY:

Mukand Iron and Steel Works Limited, re-christened ‘Mukand Limited' on and from March 23, 1989, was registered on November 29, 1937. The Company then operated re-rolling mills and foundry in Lahore and at Reay Road, Bombay. Two years later, Lala Mukand Lal who had the controlling interest in the Company and had been doing constructive social work under the guidance of Mahatma Gandhi, expressed his desire to leave the Company. The Mahatma asked Jamnalal Bajaj and Jeevanlal Motichand to take over the Company which was then under serious financial strain. They did so after some persuasion, in 1939.

The Steel Plant at Kalwe commenced operations in 1965. A structural shop, later re-christened ‘Machine Building Division' was also set up at Kalwe by the same year. The Company established its leadership in the two businesses, steel and machine building, fairly quickly.

The history of Subject is the history of its resilience, continual renewal and resurgence.

Business Description

SuSubject is a manufacturer of alloy and stainless steel long products in a variety of grades and sections. The business of the Company is in the areas of supply and erection of equipment for power generation plants, integrated steel plants, aluminum plants and hydrocarbon plants. The contracts cover erection of mechanical plant, structural works, piping works and electrical works. The Company also undertakes engineering and project management jobs for rolling mills in, steel plants and electrical works at power plants. During the fiscal year ended March 31, 2010 (fiscal 200), the Company booked orders, which include fabrication and erection of structural of aluminum smelter and steel hot strip mill in a steel plant, equipment supply, cabling package, earthing and lighting protection electrical systems in a power plant and specialized shut down job in refinery. The Company has two segments: construction and infotech. For the fiscal year ended 31 March 2010, Mukand Limited's revenues increased 3% to RS20.27B. Net income applicable to common totaled RS596.7B, vs. a loss of RS1.45M. Revenues reflect an increase in net sales and Services. Net income also reflects a decrease in raw materials consumed, a fall in contract execution cost, decreased expenditure on exceptional items, an increase in share of profit from associate and higher operating margin.

Manufacture of steel, including car and ship castings; manufacture of machinery for the sugar, cement and rail industries; provision of engineering services, including nuclear pipe work

Iron and Steel Mills and Ferroalloy Manufacturing

Board of Directors :

Shri. Niraj Ramkrishna

Shri. Niraj Ramkrishna Bajaj is Chairman of the Board, Managing Director of Mukand Limited He is a Commerce Graduate and MBA from Harvard Business School, U.S.A. He joined the services of the Company in March, 1983 as Senior Marketing Manager and since then has held positions of General Manager Marketing, Deputy Chief Executive, Executive Director. He was appointed Managing Director of the Company on 10th August 1994 and as Chairman and Managing Director w,e.f. July14, 2007.

Shri. Rajesh V. Shah

Shri. Rajesh V. Shah is Co-Chairman of the Board, Managing Director of Mukand Limited He is M.A. in Mathematics from Cambridge University, U. K. and M.B.A. from University of California at Berkeley, U.S.A.. He has completed Programme for Management Developmental Harvard Business School, U.S.A. He joined the services of the company in June, 1977 as Sales Manager (Rolled products) and since then has held positions as Chief Marketing Manager, Deputy Chief Executive, Chief executive and Executive Director He was appointed Managing Director of the Company on 10th August 1994, as Vice-Chairman and Managing Director on 22 May, 2007 and as Co-Chairman and Managing Director wet July14, 2007.

Dr. N. P. Jain IPS (Retd.)

Dr. N. P. Jain IPS (Retd.), is Non-Executive Independent Director of Mukand Limited He is a retired diploma from the Indian Foreign Service. In addition to having been Secretary, Ministry of Extemal Affairs, Govt. ot India, he has served as India’s Ambassador to the European Union, Nepal, U.N., Mexico and Belgium. In the recent years, Dr. Join was a Member of the Board of Directors of Exirn Bank of India Limited, Credit Lyannaise and number of other public limited companies in the steel, chemicals, textiles, electronics, agri-business, power sectors etc. He has been on the Board of Directors of Mukand Limited since 1990.

Shri. Dhirajlal S. Mehta

Shri. Dhirajlal S. Mehta is Non-Executive Independent Director of Mukand Limited He is a Fellow Member of the Institute at Chartered Accountants of India and a ‘Fellow Member of Institute of Company Secretaries of India. He has been on the Board of Directors of Mukand Limited since 1976. He has experience in corporate laws, taxation, finance and investments. He has served on committees constituted by SEBI, the Department of Company Affairs and business/industry associations, He has varied interests including social and voluntary work, Presently, he is the President of, among others, Kasturba Gandhi Notional Memorial Trust, Kasturba Health Society, and Shivananda Mission. He is also the Joint Managing Trustee of Saurashtro Trust which runs the Janmabhoomi Group of Newspapers. Shri Mehta presently holds direétorships and committee memberships in the following listed companies: 80101 Auto Limited Bob! Hindusthan Lid. Bajaj Auto Finance Limited Moharashtro Scoolers Limited

Shri. Prakash V. Mehta

Shri. Prakash V. Mehta is Non-Executive Independent Director of Mukand Limited He is graduated in law from the University of Bombay in 1963 and qualified as a Solicitor in 1966. He was appointed as a Notary in 1996. He iso Member of the Maharashtra and Goa Bar Association and also a member of the Managing Committee of the Bombay Incorporated Law Society. His areas of specialisation include Joint Ventures and Foreign Collaborations, Property Law and Corporate Law, At present, he is one of the senior partners at MIs. Malvi Ranchaddas and Co., Advocates and Solicitors, Mumbai.

Shri. Pradip P. Shah

Shri. Pradip P. Shah is Non-Executive Independent Director of Mukand Limited He holds an MBA from Harvard Business School and is a Commerce graduate of the University of Bombay. He is a qualitied Chartered Accountant and Cost Accountant. He ranked first in India En the Chartered Accountancy examinations. He is engaged in corporate finance and private equity advisory business and is presently the Chairman at IndAsia Fund Advisors Private Limited. Prior to starting IndAsia, he was ossociated with the establishment of the lndocean Fund, was founder Managing Director of The Credit Rating Information Services of India Limited ICRISILI and assisted in founding Housing Development Finance Carparatan IHDFCI in 1977, Shri Shah has also served as a consultant to USAID, World Bank and Asian Development Bank.

Shri. Narendra J. Shah

Shri. Narendra J. Shah is Non-Executive Director of Mukand Limited. He is an Arts Graduate. He has been on the Board of Directors of Mukand Limited since 1989 He joined the Company in the year 1948 as a Management Trainee and held several managerial positions at different times. He was the Assistant Chief Executive when he resigned from the Company in the year 1969. Shri. Shah is a Trustee of Jeewanlal Motichand Foundation engaged in the work of Rural Development.

Shri. Suketu V. Shah

Shri. Suketu V. Shah is Joint Managing Director, Whole-Time Director of Mukand Limited He is a B.Com (Hons) graduate and holds a MBA from Harvard Business School. He joined the services of the Company in the year 1984 and at present he is Joint Managing Director of the Company. He joined the Board of the Company in the year 1989. He was the Chairman of the Western Regional Council of the Confederation ot Indian Industry (CIII and Chairman of Young Presidents’ Organisation CtPOt — Murnbai Chapter. He is at present the Chairman of the Alloy Steel Producers Association of India. He is also a director and committee member of UTV Software Communications Limited, a listed Company.

Shri. N. C. Sharma

Shri. N. C. Sharma is Non-Executive Independent Director of Mukand Limited Shri. Sharma, post-graduate in English Literature, joined Life Insurance Corporation of India ILIC) in 1965. Shri. Sharma was Managing Director of LIC of India during the period 2000-2002. Before taking over as Managing Director of LIC in November 2000, Shri Sharma served as Zonal Manager, Western Zone and as Executive Director (Personnel at the Corporate Office. He retired from LIC in November 2002. Shri. Sharma presently holds Directorship of PSL Limited, a listed company. He had earlier served as Director on the Board of Tata Chemicals Limited, Punjab Tractors Limited and as Public Representative ISEBi Nominee) on the Board of Delhi Stock Exchange Association Limited Shri. Sharma writes on subjects related to Life Insurance Industry.

Shri. Amit Yadav

Shri. Amit Yadav is Non-Executive Independent Director of Mukand Limited He is B.Sc. (Engg.) Civil with honours from Punjab Engineering College, Chandigarh and holds qualifications in Computer. He is a Fellow Member of Institution of Engineers (India) and a member of the panel of Arbitrators of Construction Industry Arbitration Council, New Delhi. During his career spanning 31 years, he was associated with Public Health Department of Uttar Pradesh (U.P.) and U.P. State Electricity Board. He has wide and varied experience covering Design, Planning and Project Management of power and real estate projects. He joined Life Insurance Corporation of India (LIC) in 1996 and at present is working as Executive Director (Engineering) at Central Office, Mumbai with overall responsibility for all engineering functions and development of real estate.

PRESS RELEASES:

Outcome of AGM

01 November 2011

India, November ‘01 -- Mukand Limited has informed BSE that the Annual General Meeting (AGM) of the Company was held on July 27, 2011.

PRESS RELEASES:

STEEL PRICES SET TO RISE ON KARNATAKA MINING BAN?

07 September 2011

TOKYO, Sept. 7 -- The ban on mining in the three regions of Karnataka, following a recent Supreme Court order, had led to an artificial shortage of iron ore and this may lead to another round of hikes in steel prices.

"Mining is a traumatic issue for the steel industry and an artificial shortage of iron ore has been created following the supreme court order banning mining in the three regions of Karnataka," Rajesh V Shah, Cochairman and MD, Mukand Limited told reporters on the sidelines of the India-Japan global partnership summit.

Iron ore is a key raw material for the steel industry and Shah said the Supreme Court order will affect steel companies especially those in the small and medium sector. "The mining ban has affected us as well and may lead to another hike in steel prices," he added.

The steel industry is going through a rough patch, with the Supreme Court banning iron ore mining in Bellary, Chitradurga, and Tumkur regions in Karnataka due to large scale environmental degradation of the areas.

PRESS RELEASES:

7 February 2011

Press note

40% INCREASE IN SALES

Mukand Limited recorded a 40% increase in net sales in the third quarter ended December 31, 2010 at Rs 6662.400 Millions as against Rs. 4776.600 Millions of the corresponding period in the previous year.

The turnover of steel division recorded an increase of 50% as against the corresponding period in the previous year, while the Industrial Machinery division recorded a decrease in revenues by Rs 71.000 Millions in the same period. of the growing domestic and global markets.

The payments made to the workers as the result of a comprehensive wage settlement that the company entered into for a period of four years and eight months effective from November 2010, the incentive payments made to other employees of the company and forex losses during this quarter all contributed in the PAT witnessing a decrease of 53% as against the corresponding period in the previous year.

PRESS RELEASES:

July 28, 2010

MUKAND RECORDS 26% INCREASE IN TURNOVER

Mukand Limited recorded a 26% increase in the gross sales including other operating income at Rs.6080.000 millions in the quarter ended June 30, 2010 as against Rs.4790.000 millions for the same period in the previous year. The profit before tax rose by 22% at Rs.174.100 millions in the first quarter of the current year, as against Rs.142.300 millions for the same period in the previous year.

The significant growth in the auto sector, resulted in a 33% increase in the Company's speciality steel net sales at Rs.4780.000 millions in the current quarter, as against Rs.3580.000 millions in the corresponding quarter of the previous year. The Company envisages a quarter by quarter growth in sales on the basis of the growth plans of its key automobile customers. The Company has completed its modernization and expansion programme and is poised to feed the requirements of the growing domestic and global markets.

The first quarter of the year, saw the Industrial Machinery division focusing on the installation and commissioning of several large orders including an electric level luffing crane for Kochi shipyard which is the largest such crane in the country, two level luffing cranes for Tuticoron port, etc. The division has an outstanding order book of Rs.4130.000 millions as on June 30,2010 and expects to maintain its compounded yearly growth of 18%.

Mukand has installed a 15MW capacity power plant at its facility in Hospet, Karnataka. This power plant is based on the waste gases from the mini blast furnace thus reducing the Company's dependency on power generated from conventional forms while also reducing its energy costs.

Mukand Limited is happy to announce that it received the SKF supplier excellence award 2009 for excellent quality performance. The Company is the only steel company in the world to have received this award from this global giant this year.

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.50.72
UK Pound	1	Rs.79.88
Euro	1	Rs.68.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.