MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	ADHUNIK METALIKS LIMITED (w.e.f 09.08.2005)
Formerly Known As :	NEEPAZ METALIKS LIMITED (w.e.f 18.02.2004) NEEPAZ METALIKS PRIVATE LIMITED
Registered Office :	14, N S Road, 2^nd Floor, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.11.2001
Com. Reg. No.:	21-093945
Capital Investment / Paid-up Capital :	Rs. 1234.995 Millions
CIN No.: [Company Identification No.]	L28110WB2001PLC093945
TAN No.: [Tax Deduction & Collection Account No.]	RCHN00117F
PAN No.: [Permanent Account No.]	AABCN5676P
Legal Form :	Public Limited Liability Company. Company’s shares are listed on the Stock Exchange.
Line of Business :	Manufactures a wide variety of Special Steel of International Quality for different applications in Automobile, Construction and Engineering.

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 25000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	14 N S Road, 2^nd Floor, Kolkata – 700 001, West Bengal, India.
Tel. No.:	91-33-22428551/8553
Fax No.:	91-33-22428551 / 22428553
E-mail :	bvarughese@adhunikgroup.co.in
Website :	www.adhunikgroup.com
Head Office :	2, Inner Circle Road, Shanti Hari Tower, Bistupur 831001, Jameshedpur, India
Tel. No.:	91-657-2227001/7224
Fax No.:	91-657-2227980
Corporate Office :	Lansdowne Towers, 2/1A, Sarat Bose Road, Kolkata – 700 020, West Bengal, India.
Tel. No.:	91-33-30517100 (30 Lines)
Fax No.:	91-33-22890285
E-Mail :	info@adhunikgroup.com
Factory :	Chadri Hariharpur, Kuarmunda, District Subdargarh, Orissa – 770039, Tamilnadu, India
Tel. No.:	91-661-3051300/2586001-04
Fax No.:	91-661-2586005
Branch Offices :	Located at: New Delhi Mumbai Chennai Punjab Jamshedpur Ludhiana Nagpur Durgapur Meghalaya Guwahati Bhubaneshwar Pune

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Ghanshyamdas Agarwal
Designation :	Chairman
Date of Birth/Age :	16.10.1957
Name :	Mr. Jugal Kishore Agarwal
Designation :	Director
Date of Birth/Age :	05.10.1951
Name :	Mr. Nirmal Kumar Agarwal
Designation :	Director
Date of Birth/Age :	11.11.1962
Name :	Mr. Mohanlal Agarwal
Designation :	Director
Date of Birth/Age :	10.05.1964
Name :	Mr. Mahesh Kumar Agarwal
Designation :	Director
Date of Birth/Age :	10.05.1966
Name :	Mr. Nihar Ranjan Hota
Designation :	Director
Name :	Mr. Lalit Mohan Chatterjee
Designation :	Director
Name :	Mr. Manoj Kumar Agarwal
Designation :	Managing Director
Date of Birth/Age :	06.08.1969
Name :	Dr. Ramgopal Agarwal
Designation :	Director
Name :	Mr. Nandanandan Mishra
Designation :	Director
Name :	Mr. Surendra Mohan Lakhotia
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anand Sharma
Designation :	Company Secretary
Address :

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11103634	8.99
Bodies Corporate	57459667	46.53
Sub Total	68563301	55.52
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	68563301	55.52
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9172012	7.43
Financial Institutions / Banks	4345996	3.52
Foreign Institutional Investors	14803605	11.99
Sub Total	28321613	22.93
(2) Non-Institutions
Bodies Corporate	6667161	5.40
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	6442560	5.22
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	7575527	6.13
Any Others (Specify)	5929374	4.80
Non Resident Indians	245069	0.20
Clearing Members	220125	0.18
Overseas Corporate Bodies	1000	--
Foreign Corporate Bodies	5463180	4.42
Sub Total	26614622	21.55
Total Public shareholding (B)	54936235	44.48
Total (A)+(B)	123499536	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)	123,499,536	-

BUSINESS DETAILS

Line of Business :

Manufactures a wide variety of Special  Steel of International Quality for different applications in Automobile ,Construction and Engineering.

Products :

Product Description	Items Code No. (ITC Code)
Sponge Iron	7203 10 00
Pig Iron	7201 10 00
Billet (Non-Alloy)	7224 90 91
Billet (Alloy)	7227 19 20
Granulated Slag (By Product)	2618 00 00
Rolled Product (Non Alloy)	7213 10 90
Rolled Product (Alloy)	7227 90 90
Ferro Silico Manganese	7202 30 00

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Sponge Iron	Tonnes	300000	203695
Pig Iron	Tonnes	213792	179338
Billets	Tonnes	445400	335036
Rolled Product	Tonnes	220000	159564
Silcon and Ferro Alloys	Tonnes	46880	24456
Oxygen Gas	M. Cu.	35972000	30801498
Sinter	Tonnes	267300	243735
By-Product	Tonnes	--	489944
Trading Goods	Tonnes	--	5726

* Includes sale of By-Products amounting to Rs. 141.500 millions.

Notes:

a) Licensed capacity is not applicable as the industry is delicensed.

b) Installed Capacity is as certified by the Management and relied upon by the Auditors.

c) After adjusting shortages

d) Include Trial Run Stock

e) Excludes materials captively consumed

f) Excluding own consumption / transferred to Raw Material after rescreening

GENERAL INFORMATION

Bankers :

• State Bank of India
• Allahabad Bank
• Canara Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Indian Overseas Bank
• Punjab National Bank
• Bank of Maharashtra
• Corporation Bank
• State Bank of Mysore
• Syndicate Bank
• UCO Bank
• Union Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loan From Banks	8640.474	6267.101
Working Capital Finance From Bank
In Indian Currency	3911.598	2853.424
In Foreign Currency	89.745	494.755
Deferred Payment Credits
- From Banks	23.670	43.799
- From Others	35.457	67.885
Total	12700.944	9726.964
* Including interest accrued and due Rs. 71.546 millions (Rs. 82.243 millions)
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Short Term Loan
- Bodies Corporate	1.000	20.049
- Bank	734.428	2418.387
- Others	7.576	19.423
Total	743.004	2457.859
*including Interest Accrued and Due Rs. 8.307 millions (Rs. 15.045 millions)

Banking Relations :	--
Auditors :
Name :	S R Batliboi and Company Chartered Accountants
Partnership Firm (Joint Ventures) :	· United Minerals
Subsidiaries :	· Adhunik Power Transmission Limited. (Formerly Unistar Galvanisers and Fabricators Limited) · Adhunik Power and Natural Resources Limited · Neepaz V Forge (India) Limited · Orissa Manganese and Minerals Limited
Enterprises over which Key Management Personnel / Relatives have significant influence :	· Adhunik Alloys and Power Limited · Adhunik Corporation Limited · Adhunik Infotech Limited · Adhunik Industries Limited (w.e.f. 05.01.2010 · Adhunik Meghalaya Steels (Private) Limited · Adhunik Steels Limited · Futuristic Steels Limited · Mahananda Suppliers Limited · Neepaz B.C. Dagara Steels Private Limited · Sungrowth Shares and Stock Limited · Swarnarekha Steel Industries Limited · Zion Steel Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
145180000	Equity Shares	Rs.10/- each	Rs. 1451.800 Millions
20000	Preference Shares	Rs. 10/- each	Rs. 0.200 Million
	Total		Rs. 1452.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
123499536	Equity Shares	Rs.10/- each	Rs. 1234.995 Millions

Note:

Issued, Subscribed and Paid Up Capital includes 8,033,322 Equity Shares of Rs. 10 each issued for consideration other than cash and 8,545,152 shares issued and allotted as fully paid up Bonus shares by capitalisation of Securities Premium.

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		1234.995	1234.995	912.312
2] Share Application Money		0.000	0.000	0.000
3] Share Warrants		0.000	0.000	251.201
4] Reserves & Surplus		5173.653	4920.048	2005.587
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6408.648	6155.043	3169.100
LOAN FUNDS
1] Secured Loans		12700.944	9726.964	9228.802
2] Unsecured Loans		743.004	2457.859	3983.283
TOTAL BORROWING		13443.948	12184.823	13212.085
DEFERRED TAX LIABILITIES		1471.302	1342.399	994.119
TOTAL		21323.898	19682.265	17375.304
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12633.496	13099.542	8604.170
Capital work-in-progress		673.596	355.903	1927.629
Capital Expenditure on New Projects and Trial Run Expenses		159.753	24.722	651.313
INVESTMENT		2070.733	2060.699	1781.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6577.903	4469.501	3723.522
	Sundry Debtors	2973.714	2061.516	1134.814
	Cash & Bank Balances	586.032	995.388	855.011
	Other Current Assets	238.533	23.235	132.944
	Loans & Advances	1209.948	1485.866	1902.478
Total Current Assets		11586.130	9035.506	7748.769
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3032.081	1803.932	1395.253
	Other Current Liabilities	2538.589	2878.215	1788.340
	Provisions	229.140	211.960	141.290
Total Current Liabilities		5799.810	4894.107	3324.883
Net Current Assets		5786.320	4141.399	4423.886
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		21323.898	19682.265	17375.304

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	14373.005	12585.895	11637.924
		Other Income	524.705	369.502	267.455
		TOTAL (A)	14897.710	12955.397	11905.379
Less	EXPENSES
		Excise Duty on Stocks	31.684	120.422	(12.707)
		Raw Material Consumed	8360.051	5923.698	4536.793
		Purchases of Trading Goods	151.483	965.043	1681.493
		Manufacturing Expenses	3518.016	2649.016	2335.719
		Personnel Expenses	577.822	423.219	304.268
		Selling and Administrative Expenses	1092.004	979.508	1177.250
		Preliminary Expenditure Written Off	0.000	0.046	0.000
		Share of (Profit) / Loss in Partnership Firm	0.103	(0.048)	(0.026)
		Prior period expenses	3.193	15.118	5.308
		Increase/(Decrease) in Finished Goods	(2051.697)	(762.127)	100.327
		TOTAL (B)	11682.659	10313.895	10128.425
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3215.051	2641.502	1776.954
Less	FINANCIAL EXPENSES (D)		1673.229	1380.220	1064.897
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1541.822	1261.282	712.057
Less/ Add	DEPRECIATION/ AMORTISATION (F)		875.761	582.345	369.386
	PROFIT BEFORE TAX (E-F) (G)		666.061	678.937	342.671
Less	TAX (H)		97.452	139.869	41.199
	PROFIT AFTER TAX (G-H) (I)		586.609	539.068	301.472
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2126.606	1839.123	1661.088
Less	Adjustment of loss pertaining to the amalgamating companies		0.000	58.094	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	28.430	13.477	--
		Proposed Dividend	185.249	154.374	105.506
		Tax on Dividend	0.852	25.640	17.931
	BALANCE CARRIED TO THE B/S		2480.684	2126.606	1839.123
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1047.117	29.844	662.326
	TOTAL EARNINGS		1047.117	29.844	662.326
	IMPORTS
		Raw Materials	2089.506	1138.961	805.931
		Stores & Spares	104.580	81.909	59.767
	TOTAL IMPORTS		2194.086	1220.870	865.698
	Earnings Per Share (Rs.)		4.60	4.80	3.30

QUARTERLY RESULTS

PARTICULARS	30.06.2010
	1^st Quarter
Net Sales	3324.410
Total Expenditure	2577.960
PBIDT (Excl OI)	746.450
Other Income	0.000
Operating Profit	746.450
Interest	485.810
Exceptional Items	0.000
PBDT	260.640
Depreciation	222.030
Profit Before Tax	38.610
Tax	7.740
Provisions and contingencies	0.000
Profit After Tax	30.870
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	30.870

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.94	4.16	2.53
Net Profit Margin (PBT/Sales)	(%)	4.63	5.39	2.94
Return on Total Assets (PBT/Total Assets}	(%)	2.75	3.07	2.10
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.11
Debt Equity Ratio (Total Liability/Networth)		3.23	2.77	5.22
Current Ratio (Current Asset/Current Liability)		2.00	1.85	2.33

LOCAL AGENCY FURTHER INFORMATION

INFORMATION REQUIRED

1. What are your Products? Approximate idea of Quantity produced per year.

Product	Capacity in MT
Sponge Iron	203695
Pig Iron	179338
Billets	335036
Rolled Product	159564
Silco and Ferro Alloys	24456
Oxygen Gas	30801498
Sinter	243735

2. What Production-Processes used in the Factory. What kind of Facilities you have :

(For example, continuous casting, ingot, slab thickness, hot and cold mill, process line etc. process summary）

Facility :-

1) Blast Furnace

2) Coal Washery

3) DRI Plant

4) Rolling Mill

5) Steel Melting Shop

6) Captive Power Plant

7) Coke Oven Plant

8) Oxygen Plant

9) Sinter Plant

10) Vacuum Degassing

Production Processes

	Products	Unit	Quantity
Raw Material
	Ferro Alloy	TPA	50700
Imported Coal	Coke oven1	TPA	120000
	Pellet Plant	MTPA	1
	Sinter	TPA	267300
Captive Coal mine	Coal Washery	TPA	700000
	Captive Power	MW	34
Iron Making
	MBF 1 MBF 2	TPA TPA	214000 600000
	DRI	TPA	270000
Steel Making and Secondary Metallurgy
	LD Furnace	TPA	600000
	EAF	TPA	280000
	IF	TPA	120000
Casting and Rolling
	Rolling Mill 1	TPA	220000
	Bloom Caster 1	TPA	460000
	Bloom Caster 2	TPA	600000
	Rolling Mill 2	TPA	120000
	Rolling Mill 3	TPA	700000

3. Who are your main customers?

• Tata Motors

4. What “make” are facilities on your Production.

The facilities on your production line are Procured which Manufacturer (which Country).

Not Divulged

5. Do you have any plan to “invest” in new facilities in the future?

Will you go for high-technology production equipment or you will target low-cost equipment.

Depend on Equipment and Demand

6. What kind of trouble / limitations / challenges you have with your existing facilities?

No limitation

7. What is your “Future” plan Will you go for :

a) High Production volume

b) More variety of products.

They are planning together for “High Production Volume”

8. Do you plan to collaborate with other Steel Producers, and thus expand Business together?

No

9. How do you procure your “Input” materials?

Australia (Import)

10. From where do you buy your infrastructure?

From Domestic Supplier

11. How do you dispose-of factory “wastes”.

Wastages of Gas is used for generation of power

12. Do you plan to introduce Japanese Production Equipment in future :

Will you like to buy Japanese Equipment?

Depend on Equipment

13 Will you also be interested in getting Japanese “Technology” for Production?

Depend of Technology

14. Are you exporting your products? Please name the countries being exported to.

o Bangladesh

o Nepal

OPERATIONS

The Company continues to progress well as a result of their focus on high value-added rolled products despite recent raw material cost pressures. The Company also benefited from the continued strong demand of steel in the auto, infrastructure and engineering sectors during the year. In the mining business, they continued to ramp up our production and focused on medium to high grade manganese ore which helped improve average price realisations. Iron ore prices also increased significantly during the year, which also contributed to an increase in margins of the mining business. The first phase of power venture is expected to commence production by March 2012.

The Company achieved net sales of Rs.14373.000 millions in FY 2011, an increase of 14.2% compared to the prior year primarily due to an increase in sales volumes and prices. Profit after tax also increased to Rs.568.600 millions in FY 2011 against Rs.539.000 millions in FY 2010. The Company’s sales volume of billets and rolled products increased from 3,00,880 MT in FY 2010 to 3,17,892 MT in FY 2011.

The Company’s consolidated net sales increased to Rs.17934.100 millions in FY 2011, an increase of 23.7% compared with the prior year, driven by strong performance in the mining segment. The consolidated profit after tax also increased from Rs.1373.500 millions to Rs.1843.100 millions in FY 2011, recording a jump of 34.2%.

SUBSIDIARIES

The Company has four subsidiaries viz.:

_ Adhunik Power Transmission Limited (Formerly Unistar Galvanisers and Fabricators Limited) became a subsidiary of the Company with effect from July 17, 2006. During the year, the name of Unistar Galvanisers and Fabricators Limited was changed to Adhunik Power Transmission Limited vide ROC Certificate dated January 4, 2011 issued pursuant to section 23(1) of the Companies Act, 1956.

_ Orissa Manganese and Minerals Limited became a subsidiary of the Company with effect from April 5, 2007 Neepaz V Forge (India) Limited became subsidiary of the Company with effect from October 4, 2007

_ Adhunik Power and Natural Resources Limited became subsidiary of the Company with effect from November 14, 2008. However with effect from December 24, 2010 Adhunik Power and Natural Resources became a subsidiary of Orissa Manganese and Minerals Limited, the wholly-owned subsidiary of the Company.

During 2010-11, Adhunik Power and Natural Resources Limited which is in the process of implementing 270 MW X 2 thermal power project in the state of Jharkhand also received equity commitment of Rs.1250.000 millions from SBI Macquarie Infrastructure Fund. This was in addition to Rs.2500.000 millions of equity commitment from IDFC Project Equity Fund.

In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the balance sheet, profit and loss account and other documents of the subsidiary companies namely Orissa Manganese and Minerals Limited, Adhunik Power and Natural Resources Limited, Neepaz VForge (India) Limited and M/s Adhunik Power Transmission Limited (formerly M/s Unistar Galvanisers and Fabricators Limited) are not being attached with the balance sheet of the Company. The annual accounts of the subsidiary companies and the related detailed information is available on the Company’s website. The Company will make available the annual accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will also be kept open for inspection at the Registered Office of the Company and of the subsidiary companies concerned. The consolidated financial statements presented by the Company include the financial results of its subsidiary companies.

MANAGEMENT DISCUSSION AND ANALYSIS

INDIAN ECONOMIC REVIEW

The Indian economy rebounded from the global economic slowdown of 2008, its GDP rebounding from 8% in 2009-10 to 8.6% in 2010-11, following a recovery in agriculture, and sustained momentum in its manufacturing sector. The country’s manufacturing growth remained constant at 8.8% while mining declined 6.2% in 2010-11 against 6.9% in 2009-10. India’s GDP is expected to grow at 8.5% in 2011-12

IRON ORE

Iron ore is the primary source of iron for the world's iron and steel industries. It is essential for steel production, which in turn is critical for a strong industrial base. Almost all (98%) iron ore is used in steel-making. Iron ore is mined in about 50 countries. The seven largest of these countries account for about three-quarters of the total world production. Australia and Brazil together dominate the world's iron ore exports, each accounting for a third of total exports.

Global scenario:

It is estimated that there are 800 billion tonnes of global iron ore resources containing more than 230 billion tonnes of iron. of this, the United States has 110 billion tones of iron ore representing 27 billion tonnes of iron. World production averages two billion metric tonnes of raw ore annually. China is the world’s largest steel producer with a share of more than 44%. Despite being the second-largest producer, it is the leading importer of iron ore. In 2010, China’s total iron ore imports amounted to 619 million tones, a modest decline of 1.5% over the previous year. China is the world’s largest iron ore consumer at 800 million tonnes. The bulk of the supply to China comes from Brazil and Australia. India accounts for only a fifth of China’s imports.

Indian scenario:

The Indian iron ore industry is fragmented. A total of 577 mining leases are in force, which produces around 225m tonnes of iron ore, implying an average of 0.4m tonnes from each lease. Goa has 187 mining leases, with the lowest average per mine production of 157,000 tonnes per annum. Karnataka and Jharkhand have an average per mine production of 289,000 tpa and 435,000 tpa, respectively. India produced around 226 million tonnes of iron in 2009-10 and shipped over 1,117.37 million tonnes of iron ore in 2009-10. Around 90% was in the form of fines.

Outlook:

Developing Asia (including China) and Africa will be the fastestgrowing regions, driven by population and income growth. If steel use intensity follows trends in developed economies, iron ore demand from these regions could hit 1,300 Mt by 2020, representing a CAGR of 8%.

MANGANESE ORE

Demand for manganese is primarily driven by the steel industry, which consumes 94% of the manganese ore produced the world over in the form of manganese alloys. Globally, manganese reserves are estimated at 5.2 billion tonnes (75% of reserves in South Africa). Other major ore producing countries comprise Australia, India, Ukraine, China and Brazil, among others.

Manganese ore deposits are relatively widespread across more than 40 countries. Manganese is the twelfth most abundant element in the earth’s crust. Nevertheless, it is rarely found in concentrations high enough to form a manganese ore deposit. Among 300 minerals containing manganese, only a dozen are of mining significance. Current estimates of world manganese reserves (including low grade ore) reached several billion tonnes. But if only high grade ores (defined as having more than 44% Mn content) are considered, then reserves are in the range of 680 million tonnes of ore, primarily situated in the southern hemisphere with Australia, Brazil, Gabon and South Africa catering to over 90% of the international market demand. Ghana and India, both large suppliers in the past, are now exporting only limited quantities of low or medium grade ore. During 2009-10, India emerged as the fifth-largest manganese ore producer globally with a production of 2.44 million tonnes, a decline of 12.52% over the previous year.

India demand outlook:

The Indian steel industry is growing rapidly, owing to its fast-growing economy, with steel production expected to double to 125 million tonnes by 2015. This provides strong demand for manganese ore, whose growth in India is expected to be around 9% per annum.

ALLOY STEEL

Alloy steel is a type of steel to which one or more elements besides carbon are added to produce a desired physical property or characteristic. Common elements added to make alloy steel comprise molybdenum, manganese, nickel, silicon, boron, chromium and vanadium. Alloy steel is often subdivided into high and low alloy steels.

INDIAN ALLOY STEEL MARKET

_ The Indian alloy and special steel long products demand grew sharply in the past few years, following a boom in the automotive, capital goods and engineering goods industries.

_ Consumption could have been higher but for the lack of adequate production facilities, quality and pricing issues.

_ Indian alloy steel units are small by global standards, in which an increased operational scale will enhance competitiveness.

_ The Indian alloy steel industry largely caters to the growing automobile sector followed by the railways and defence sectors.

STEEL

Global steel industry:

In 2010, the global steel industry remained stable compared with the volatility in steel and raw material prices during the financial crisis. Timely support by the governments of major economies through stimulus packages provided the base for a global sectoral recovery. World crude steel production reached 1,414 million metric tonnes (mmt) in 2010, an increase of 15% compared with 2009. All major steel-producing countries and regions showed double digit growth in 2010. Asia’s annual production was 897.9 mmt in 2010, an increase of 11.6% compared with 2009. The world steel production decreased from 65.5% in 2009 to 63.5% in 2010. China's crude steel production in 2010 reached 626.7 mmt, an increase of 9.3% in 2009. China's share of the world crude steel production declined from 46.7% in 2009 to 44.3% in 2010.

Indian steel overview:

India retained its position as the fifth-largest producer in 2010 and recorded a growth of 11.3% as compared with 2009. India also emerged as the largest sponge iron/direct reduced iron (DRI) producing country in 2010.

India presents high growth potential with a per capita finished steel consumption of 54 kg, compared with 430 kg in China and 200 kg globally. The urban per capita steel consumption is expected to touch 165 kg by 2019- 20. Interestingly, India’s per capita steel consumption in rural locations is only 2 kg, with a majority of the population (70% of Indians) residing in these areas. The government set a target for raising the per capita rural consumption of steel to 4 kg per annum by 2019-20.

According to the Ministry of Steel estimates, India is expected to add around 200 mn tonne of capacity in this decade, increasing overall crude steel capacity from 78 mn tonnes in 2010-11 to around 280-290 mn tonnes by 2020. It is projected that India will emerge as the world’s second-largest steel producer by 2015-16.

Production:

India produced 67 million tonnes of steel in 2010-11 compared with 60 million tonnes in 2009-10 with integrated steel producers contributing 55% of the total crude steel production in 2010-11 and 45% by secondary producers. The Indian crude steel production recorded a compounded annual growth rate of 9.2%

Consumption:

In 2010-11, steel consumption grew at a healthy 10% from 59 million tonnes in 2009-10 to 65 million tonnes in 2010-11, owing to strong demand from the infrastructure, construction, automobile, industrial and manufacturing sectors. Rising production capacities reduced India’s import dependence from 13% in 2009- 10 to about 10% in 2011-12.

STAINLESS STEEL

The key differentiator of stainless steel from other steel types is its corrosion resistance. There are close to 150

grades of stainless steel (15 commonly used).

Global overview:

Stainless steel production is concentrated in Asia, which produces nearly 60% of the world demand. The largest producer is China, accounting for 33% of the world’s stainless steel production. The facilities in China are characterised by flexible capacities which can produce carbon and stainless steel. The world over, series 200 is yet to gain popularity as it has in India. However, with increasing nickel prices, this product mix is likely to change. In 2014, the global stainless steel market is expected to be 39 million tonnes a year.

Indian industry overview:

India’s stainless steel demand is predominantly derived from use in utensils (70% of demand), consumer durables, transport, construction and tubes. With the government’s focus on infrastructure development and growing consumer affluence, stainless steel consumption is slated to grow rapidly and India is expected to emerge as the world’s third-largest producer of stainless steel by 2014.

RAW MATERIAL MANAGEMENT

Highlights 2010-11

_ Implemented SAP in logistics management

_ Widened the vendor base for superior raw material procurement.

Overview

Steel manufacture requires four tonnes of raw material for one tonne of the end-product. Adhunik’s strategic location in Sundergarh (Orissa) makes it possible to procure 75% of its raw material requirements (iron ore, coal, coke, limestone, power, and manganese ore, among others) from within 200 kms.

Iron ore:

Subject captive iron ore mine in Keonjhar (Orissa) has estimated resources of 25 mn tonnes (will start operations in 2011-12). This is expected to meet up to 60% of the iron ore requirement from 2012-13. Around 40% of the requirement is currently procured from the merchant mines of OMML, 120 kms away.

Coal:

The Company procured non coking coal through a linkage with Mahanadi Coalfields Limited and auction. Coking coal was imported from Australia through long-term contracts. The Company was allocated a coal mine in Talcher (estimated reserve 31 mn tonnes) which is expected to commence operations in FY 2014.

Limestone:

The Company procured limestone and dolomite from Katni and Gomadi mines and captively from United Minerals

Manganese ore:

The Company sourced manganese from OMML’s Patmunda mine, one of the largest of its kind in India (manganese content 22% to 52%).

Power:

The Company met 40% of its power requirements from a 34-MW captive power plant and the rest from the state electricity grid.

Road ahead

Going ahead, the Company plans to source its entire raw material requirement from captive sources (once its mines become fully operational). The logistics department is evaluating finished goods transportation through rakes and a hub-and-spoke product distribution model.

OPERATIONS

Highlights 2010-11

_ Increased production from 3,32,254 tonnes in 2009-10 to 3,35,036 tonnes

_ Sales volume of value-added rolled products increased by 12.43% from 1,34,057 tonnes in 2009-10 to 1,50,716 tonne in 2010-11

_ Initiated total productive maintenance (TPM) to minimise downtime

Overview

Subject invested in a fully-integrated business model with captive mines and power plants, captive railway sidings and rakes, among others, comprising the following capacities: 445,400 TPA of steel, 3,00,000 TPA of sponge iron, 2,13,792 TPA of pig iron, 46,880 TPA of ferro alloys, 267,300 TPA of sinter, 1,20,000 TPA coke oven plant and a 34-MW captive power plant.

In a business where the price of end products is market-dependent, profitability is derived from cost control across core processes and by-product and waste utilisation.

Road ahead

Going ahead, the Company expects to further increase the capacity utilization of its various facilities, bringing about operational efficiency.

QUALITY MANAGEMENT

Highlights 2010-11

_ Reduced quality rejects from 3.45% in 2009-10 to 2.25%

_ Products were approved by all major Indian OEMs

Overview

Quality is critical in a business where products are supplied to major automobile OEMs, resulting in longstanding relationships.

Subject six-member quality team ensured strict conformance with globally-benchmarked quality standards across various operational functions. The Company invested in a state-of-theart quality control laboratory, equipped with sophisticated equipment (vacuum de-gasser, electromagnetic stirrer, LECO hydrogen, nitrogen and oxygen analyser and metallographic polishing machines, among others). The Company is ISO 9001:2000-certified and also received coveted certificates like TS 16949, BIS (IS: 2830/IS: 2831) and RDSO.

Road ahead

Going ahead, the Company will remain focused on maintaining and enhancing its product quality.

POWER GENERATION

Highlights 2010-11

_ Captive power plant achieved a PLF of 82% against 78% in 2009-10

_ Acquired entire land requirement for 540-MW power plant

_ Entered into an equity tie-up with SBI Macquarie for Rs.1250.000 millions.

_ Tapering linkage received for the entire 540-MW power plant

_ MOEF clearance for the entire 540- MW plant

Captive generation:

Steel manufacture is power-intensive. Subject two captive power plants (cumulative 34 MW) provide 40% of its power needs; the rest is sourced from the state grid. The power plant uses waste generated from the DRI plant, waste char (around 20% carbon) and coal washery rejects. Average per unit generation cost for the Company was Rs.2.63 compared with grid purchases at Rs.4 per unit.

Merchant power: The Group forayed into the power generation business through a subsidiary (Adhunik Power and Natural Resources Limited). It will establish a 1,080-MW plant across three phases in Jharkhand. In the first two phases, one unit of 270 MW each will be commissioned by April 2012 and another unit by September 2012. The Company acquired 400 acres of land (93% of total requirement) and necessary clearance from MoEF, Pollution Control Board and Airport Authority.

Progress of Phase I

_ Awarded a boiler-turbine-generator contract from BHEL for 540 MW; placed orders for balance of plant (BoP)

_ Allotted a captive coal mine (share 69 mn tonnes) with Tata Steel

_ Entered into equity tie-ups with IDFC for Rs.2500.000 millions and SBI Macquarie for Rs.1250.000 millions

_ Received approvals for sourcing water from a perennial river 10 km away

_ Received permission for constructing a railway siding

_ Signed a long-term power purchase agreement for 200 MW.

_ Signed a 850-MW bulk power transmission agreement with PGCIL for open access

_ Received coal linkage from Central Coalfields for 540 MW generation Capacity

Road ahead

Merchant power: The Company intends to establish an additional 540 MW (third phase) pursuant to an MoU signed with the Jharkhand government. It received MOEF clearance for an additional 540 MW. The Company signed MoUs with the Chhattisgarh, Orissa and Bihar governments for establishing 1,000-MW plants in each state.

MINING

Highlights 2010-11

_ Increased manganese ore sales volume to 193,015 in 2010-11 from 145,279 in 2009-10, recording an increase of 32.85%

_ Manganese ore realisations increased significantly by 85.14 % from Rs.0.004 million in 2009-10 to Rs.0.008 million in 2010-11, due to increased focus on high grade manganese ore mining

_ Iron ore realisations increased significantly by 70.17% from Rs.0.001 million in 2009-10 to Rs.2,702 in 2010-11

_ OMM received working permission for three non-operative manganese mines in Orissa; commenced development

_ The 1.2-million tonne iron ore beneficiation plant commenced operations in March 2011. The progress on the 1.2 million tonne pellet plant is on track

Overview

The Company, through its subsidiary, possesses iron ore and manganese ore mines with estimated resources of 97 mn tonnes and 53 mn tones respectively. These resources are expected to last over 30 years based on the Company’s post-commissioning throughput. The iron ore and manganese ore mines are open cast with a low stripping ratio. The ratio of lumps to fines is 60:40. Some of the Company’s major clients comprise Bhushan Steel, MSP Sponge Iron, Jindal Stainless and Rohit Ferro-Tech, among others. The Company is investing in a 1.2-MTPA iron ore beneficiation plant and pellet plant to convert iron ore fines into pellets and enhance revenues. The iron ore beneficiation plant was already commissioned in March 2011 and the pellet plant is expected to commence operations by the second half of 2012.

Road ahead

Going ahead, the Company expects to commission the pelletisation plants. The Company is also focused on commissioning the captive coal, iron ore and Suleipat iron ore mines on schedule.

MARKETING

Highlights 2010-11

_ Increased revenues 16.10% from Rs.13455.000 millions in to Rs.15621.900 millions

_ Increased sales volume of finished steel 5.51% from 3,00,880 tonnes in 2009-10 to 3,17,476 tonnes

_ Strengthened average manganese ore from Rs.4,836 per ton to Rs.9,010 per ton

_ Strengthened average iron ore realisations from Rs.1,588 per ton in 2009-10 to Rs.2,703 per ton

_ Introduced eddy current and automotive multiprobe ultrasound facility in the plant, which will enable the Company to manufacture quality products

Overview

Subject 50-member marketing team enables it to identify customers and provide them with the right products. The Company is present in India with 15 marketing offices in 12 states. The Company sold 85% of its products to forging and engineering companies with onward applications for the automobile, power and oil and gas sectors. The Company’s products are approved by major OEMs, resulting in threat minimisation from competitors. The Company installed TPM across the organisation including the marketing team. The dedicated sales team ensures

a harmonious relationship with its customers, resulting in 70% of the revenues derived from customers more than five years old.

Road ahead

Going ahead, the Company will seek approvals from more OEMs. The Company is already in the process of receiving an approval from Hero Honda

– India’s leading two-wheeler manufacturer. It also expects to strengthen its order book in the coming year.

FINANCE REVIEW

Income accounting method

The Company’s financial statements were prepared in line with the Generally Accepted Accounting Principles and

Accounting Standards as per Section 211(3C) of the Companies Act, 1956. The financial statements of the Company were prepared under the historical cost-convention basis and disclosures were made in accordance with the requirements of Schedule VI of the Companies Act, 1956, and the Indian accounting standards.

Highlights, 2010-11

_ Total income grew 22.76% from Rs.14944.500 millions in 2009-10 to Rs.18345.400 millions

_ EBIDTA grew 37.63% from Rs.4271.400 millions in 2009-10 to Rs.5878.600 millions

_ PAT surged 35.19% from Rs.1373.600 millions in 2009-10 to Rs.1843.100 millions

_ Basic EPS increased 21.93% from Rs.12.24 in 2009-10 to Rs.14.92

_ Cash profit increased 43.79% from Rs.2050.300 millions in 2009-10 to Rs.2948.100 millions

Revenues

The Company’s total revenues (net sales) increased 23.71% in 2010-11, owing to the following reasons:

_ Higher proportion of value-added products in the Company’s product portfolio – from 1,34,057 tonnes in 2009-10 to 1,50,716 tonnes in 2011

Better sales realisation of billets and rolled products in 2010-11:

_ Higher contribution by the mining Business.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30^th JUNE 2011

Rs. In Millions

Particulars	Quarter ended 30.06.2011 (Unaudited)
Income
Gross sales / Income from operations	3552.082
Less: excise duty	249.331
a) Net Sales / Income from Operations	3302.751
b) Other Operating Income	21.658
Total Operating Income	3324.409
Expenditure
(a) (Increase)/decrease in Stock in Trade and work in progress	(24.464)
(b) Consumption of Raw Materials	1332.973
(c) Purchase of traded goods	160.770
(d) Employees Cost	132.188
(e) Stores and Spares consumed	269.247
(f) Depreciation	222.026
(g) Other Expenditure	707.243
Total Expenditure	2799.990
Profit / (Loss) From Operations before other Income Interest and Exceptional Items	524.419
Other Income	--
Profit/(Loss) before Interest and Exceptional items	524.419
Interest and Finance Charges	485.814
Profit / (Loss) before Tax	38.605
Tax Expenses
- Current Tax	7.738
Net Profit/(Loss) for the period	30.867
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	1234.995
Reserves (Excluding Revaluation Reserves)	--
Earning per share
-Basic	0.25
-Diluted	0.25
Aggregate of Public Share Holding
- Number of Shares	54936235
- Percentage of shareholding	44.48
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	11100000
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	16.19
- Percentage of shares(as a % of the total share capital of the company)	8.99
b) Non-encumbered
- Number of Shares	57463301
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	83.81
- Percentage of Share (as a % of the total share capital of the company)	46.53

Notes:

1. The above unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on August 10, 2011.

2. During the quarter, the Company has undertaken technical up- gradation of Mini Blast Furnace (MBF) plantatits Steel Complex at Rourkela from May 16, 2011,for carrying out activities relating to capacity expansion from 213, 792 tonnes per annum to 231, 608 tonnes per annum and reducing cost of production. The operations of MBF plant have recommenced from June 15, 2011.

3. In terms of the dictated order dated March 29, 2010 of the Hon'ble High Court of Calcutta, net deferred tax liability amounting to Rs. 27.337 millions for the quarter ended June30, 2011 has been adjusted against Securities Premium Account.

4. The above financial results do not include the consolidated financial results of the Company. The consolidated results of the company and its subsidiaries are being published separately.

5. As the Company's business activity falls within a single primary business segment, viz. "Iron and Steel Products", the disclosure requirements of Accounting Standard-17" Segment Reporting", as notified by the Companies (Accounting Standards) Rules 2006 (as amended) are not applicable.

6. In terms of amended clause 41 of the listing agreement, details of number of investor complaints for the quarter ended June 30, 2011 : beginning -Nil, received- 21 , disposed off - 21 and Closing Nil

7. There are no exceptional / extraordinary items during the respective periods reported above.

8. Previous period figures have been re-grouped/re-arranged wherever necessary.

FIXED ASSETS :

· Freehold Land

· Buildings

· Plant and Machinery

· Vehicles

· Computers

· Furniture and Fixtures

· Office Equipments

· Leasehold land

· Rolling stock

· Railway siding

· Computer software

WEB DETAILS:

BUSINESS DESCRIPTION

Subject is engaged in the manufacture and sale of steel, both alloy and non alloy. The Company has three segments: iron and steel, mining, and power. Its product portfolio include ferro alloys, sponge iron, structural steel, carbon steel, auto steel, free cutting steel and spring steel. During the fiscal year ended March 31, 2010, the Company produced 3,32,254 tons of steel, and 1.15 million tons of merchant iron ore mines. The Company’s subsidiary Orissa Manganese and Minerals Limited (OMML) owns an open-cast iron ore and manganese ore mines. The Company has installed a coke oven, coal washery, sinter plant, sponge iron plant, railway siding ferro alloy plant and captive power plant. The Company has manufacturing facility at Sundargarh District, Rourkela and Orissa. For the nine months ended 31 December 2010, Subject revenues increased 23% to Rs12.55B. Net income increased 80% to 1.47BM. Revenues reflect an increase in income from Iron and Steel segment, increase in income from Mining segment. Net income also reflects a decrease in purchase of traded goods and an increase in operating profit margins. The Company has three segments Iron and steel, Mining and Power.

MANAGEMENT

GHANSHYAM DAS AGARWAL - NON-EXECUTIVE CHAIRMAN OF THE BOARD

Shri. Ghanshyam Das Agarwal serves as Non-Executive Chairman of the Board of Adhunik Metaliks Limited. He is a commerce graduate from Calcutta University. He has over 2 decades of experience in the steel sector. Mr. Agarwal pioneered the investment of the Group into Ferro Alloys by setting up a plant in Meghalaya under the aegis of Adhunik Meghalaya Steels (Private) Limited As the chairman of the Company he has been instrumental in defining the investment plans of the Company. His entrepreneurship has been awarded with prestigious “Bharitya Udyog Ratan” by Indian Economic Development and Research Association, New Delhi in the year 2004.

Education

Commerce, University of Calcutta

MANOJ KUMAR AGARWAL - MANAGING DIRECTOR, EXECUTIVE DIRECTOR

Shri. Manoj Kumar Agarwal serves as Managing Director, Executive Director of Adhunik Metaliks Limited. He is a graduate of engineering from REC Kurukshetra. He has more than a decade of experience in the steel sector in the areas of trading and providing services to manufacturing units in this segment. Mr. Agarwal has played an integral role in visualizing the growth road map of the group. Under his able leadership the Company has witnessed incomparable growth both in terms of setting up competitive manufacturing facilities and profitability. Mr. Manoj Agarwal is a dynamic entrepreneur and has been a influence in shaping up the future operations of the group under his leadership the Company has been able to convince the State Government of Orissa to enter into a memorandum of understanding and recommend the mining leases for coal and iron ore.

Education

Engineering, Regional Engineering College

JUGAL KISHORE AGARWAL - NON-EXECUTIVE DIRECTOR

Shri. Jugal Kishore Agarwal serves as Non-Executive Director of Adhunik Metaliks Limited. He is a law graduate from Calcutta University. He has almost 3 decades of experience in the steel sector in the areas of trading and providing services to manufacturing units in this segment. Mr. Agarwal has been a guiding force behind the group and has played a key role in envisioning the various business initiatives of the group.

Education

LLB , University of Calcutta

NIRMAL KUMAR AGARWAL - NON-EXECUTIVE DIRECTOR

Shri. Nirmal Kumar Agarwal serves as Non-Executive Director of Adhunik Metaliks Limited. He is a science graduate. He has about 2 decades of experience in the steel sector and has been mainly involved in the trading activity of the group. Under his able guidance the group started operations in Mandi Gobindgarh, Punjab the hub of steel trading in India. Mr. Agarwal is keenly involved with various industrial associations and is currently the regional director of Sponge Iron Manufacturers of India.

MAHESH KUMAR AGARWAL - NON-EXECUTIVE DIRECTOR

Shri. Mahesh Kumar Agarwal serves as Non-Executive Director of Adhunik Metaliks Limited. He is a commerce graduate from Calcutta University. He is has over 14 years of experience in the steel sector in the areas of trading and providing services to manufacturing units in this segment. Mr. Agarwal has hands on experience in all the accounting and financials of the Company, he has been the front-runner in terms of project execution in West Bengal and is credited for setting up the first sponge iron plant and rolling mill of the group in the year 2001. He is the managing director of Adhunik Corporation Limited.

Education

Commerce, University of Calcutta

LALIT MOHAN CHATTERJEE - INDEPENDENT DIRECTOR

Shri. Lalit Mohan Chatterjee serves as Independent Director of Adhunik Metaliks Limited. Mr. Chatterjee is a B.E. (Mech.) from Calcutta University. He has also completed a diploma course in mechanical and electrical engineering from S. N. T. I. Mr. Chatterjee started his carrier with Tata Steel Limited as a graduate trainee. He nurtured his skills and proved his ability and has associated with Tata Steel Limited with more than 4 decades. He retired as deputy general manager and since then he is associated with various companies as a consultant. His knowledge in iron making and ferro alloys has been admired and was awarded with “Baruka Gold Medal”.

Education

BE Mechanical Engineering, University of Calcutta

NIHAR RANJAN HOTA - INDEPENDENT DIRECTOR

Shri. Nihar Ranjan Hota is Independent Director of Adhunik Metaliks Limited. He is an M.A in Development Economics from Williams College, USA, and M. Phil in Public Administration from Punjab University. He is a retired IAS officer having 33 years experience from 1960 to 1993, holding various responsible positions under the state and central government and retired as Chief Secretary to the Government of Orissa. His was also a Member, Orissa State Finance Commission from 2003 to 2004. Mr. Hota had worked in public sectors like Orissa Construction Corporation as chairman, Food Corporation of India as regional manager, Aska Sugar Industries Limited as managing director. He was the chairman cum managing director in Industrial Development Corporation Of Orissa from 1990 to 1993. He has worked in relevant allied sectors of power and mining as secretary to the Government of Orissa. His corporate experience includes directorship of Konarak Metcoke Limited.

Education

M Philosophy, Punjab Agricultural University, Ludhiana

MA , Williams College

News

OMM GM HELD FOR ILLEGAL MINING

28 September 2011

Rourkela, Sept. 28 -- General Manager of Odisha Manganese and Minerals (OMM), a sister concern of Adhunik Metaliks, Bijay Ray was on Tuesday held by the police for illegal mining. Besides, the police sized 20,000 MT of iron ore from the company's mining area.

It had been alleged during the tenures of the former Rourkela SP and Deputy Director of Mines (DDM), Koira regarding the illegal mining of OMM in Patamunda under the Koira DDM region, but no action had then been initiated due to the nexus of some ruling BJD stalwarts with the company.

It was learnt that since last three days a joint raid by the DDM, Koira and the Rourkela police was conducted in Koira region. It was found that though OMM is authorised to raise manganese, it has been raising iron ore too. Even a huge quantity of iron ore of about 20,000 MT was detected in its Patamunda mining area.

Besides, the mines and police officials found mismatching of evidences provided by OMM to the Government and the ground situation. Since than, the interrogation of Ray was on and finally on Tuesday forenoon the police took him under custody for the irregularities and illegal mining.

It was also alleged that a raid on the company was conducted during 2009, but surprisingly the seized materials were kept in the premises of the company though in very other case the materials are shifted to other places.

ROURKELA-KOLKATA AIR SERVICE FROM SEPT 1

28 August 2011

ROURKELA: The Steel City of Rourkela is likely to get its first air connection shortly with a Kolkata-based private air service operator all set to start Rourkela - Kolkata air service from September 1 this year.

The necessary clearances from the Airport Authority of India Limited and Rourkela Steel Plant have been obtained for launching the flight service, sources said.

DTDS, a Kolkata-based travel and tour operator, has got the clearance from Rourkela Steel Plant for using its airport to operate one private air taxi, which would be a three to nine seater flight. DTDS has been providing similar kind of air services from Bokaro to Kolkata. "Our technical team has already inspected the Rourkela airport and given clearance for operation of our flight and therefore we are absolutely ready to start the service," said Ronee Ghosh, area manager of DTDS India.

"As a promotional offer, we are offering a price of Rs 4,189 against a regular fair of Rs 6,494 per passenger, which will be available till September 11, 2011. The passengers can book their tickets online and also from Eastern Travel, our local travel agent," Ghosh said. "We are committed to run the services, even if only one passenger books the ticket," he added.

The news of the flight service has been welcomed by various quarters. Several business houses like Rourkela Steel Plant, Adhunik Metaliks Limited and educational institutes like National Institute of Technology have expressed happiness over the introduction of flight services from the Steel City.

It may, however, be recalled here that flight services were started earlier on several occasions but had to be withdrawn due to various reasons.

ROUT CRITICISES GOVERNMENT AGAIN

20 August 2011

BHUBANESWAR, Aug. 20 -- Former minister and BJD MLA Damodar Rout on Friday criticized the State Government for going ahead with different port projects along the coast without undertaking proper feasibility study.

"The State Government is entering into illegal agreements with the port developers without undertaking proper feasibility study," said Rout during Question Hour in the Assembly.

The BJD member's reaction came in response to the reply of Minister of State for Commerce and Transport Sanjib Kumar Sahoo about uncertainty over establishment of a port at Barunei river mouth close to Gahirmatha Beach, the nesting site of Olive Ridley turtles.

The State Government's proposal to set up a port at Barunei river mouth in Kendrapara district has faced green hurdle, the Minister said adding that at least five investors, including the world's largest steel-maker ArcelorMittal, have evinced interest in the project.

Other companies, who are keen to establish port at Barunei river mouth, are Adhunik Metaliks, SPI Ports Private Limited, Sikal Logistics Limited and Mundra Port and Special Economic

Zone Limited, the Minister said.

Rout, however, blamed the Minister for holding negotiations over the proposed minor port at Barunei without conducting proper feasibility study.

Replying to another question, the Minister said the State Government has put two of its proposed port projects at Inchudi and Chandipur in Balasore district on hold due to opposition from the Defence Ministry.

He said besides two major ports at Dhamra and Gopalpur, the State Government has signed MoUs with separate companies for setting up three ports at Subarnarekha river mouth in Balasore district, Chudamani in Bhadrak district and Astarang in Puri district.

This apart, Posco-India has also got clearance from the Centre for setting up a captive port at Jatadhari mouth in Jagatsinghpur district, he added.

BJD MLA CRITICISES ORISSA GOVERNMENT ON PORT POLICY

18 August 2011

Bhubaneswar, August 19 2011 (PTI) -- Former minister and BJD MLA Damodar Rout today criticised the Orissa government for going ahead with different port projects along the coast without undertaking proper feasibility study.

"The state government is entering into illegal agreement with the port developers without undertaking proper feasibility study," said Rout during Question Hour in the assembly.

Rout's reaction came in response to the Commerce and Transport minister Sanjib Sahoo's reply on uncertainty over establishment of a port at Barunai river mouth close to Gahirmatha Beach, the world famous nesting site of Olive Ridley Turtles.

The state government's proposal to set up a port at Barunai river mouth in Kendrapara district, had faced green hurdle, the minister said adding that at least five investors including the world's largest steel maker ArcelorMittal had evinced interest on the project.

Other companies who desired to establish port at Barunai river mouth were: Adhunik Metaliks, SPI Ports Private Limited, Sikal Logistics Limited and Mundra Port and Special Economic Zone Limited, the minister said.

Rout, however, blamed the minister for holding negotiations over the proposed minor port at Barunai without conducting proper feasibility study. more PTI AAM RG PS 08192007

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. 48.89
UK Pound	1	Rs. 77.31
Euro	1	Rs. 67.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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.