MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	BHUSHAN POWER AND STEEL LIMITED
Registered Office :	4^th Floor, Tolstoy House, 5-17, Tolstoy Marg, Connaught Place, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.02.1999
Com. Reg. No.:	55-108350
Paid up Capital :	Rs.1360.517 millions
CIN No.: [Company Identification No.]	U27100DL1999PLC108350
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Flat, Round and value added products in Steel.
No. of Employees :	Above 1000

RATING & COMMENTS

MIRA’s Rating :

A (57)

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 148897944
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financials 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 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office / Corporate Office :	4th Floor, Tolstoy House, 5-17, Tolstoy Marg, Connaught Place, New Delhi - 110001, India
Tel. No.:	91-11-30451000
Fax No.:	91-11-23712737/ 30451101
E-Mail :	rkguptacs@yahoo.co.in eximndro@eximbankindia.com delhi@bpsl.net
Website :	http://www.bhushanltd.com http://www.bpls.net
Head Office :	F – Block 1^st Floor, International Trade Tower Nehru Place, New Delhi, India
Manufacturing Units :	Industrial Area, Chandigarh, Plot No 03 Industrial Area, Chandigarh, Plot No 71 Industrial Area, Chandigarh, Plot No 83 Industrial Area, Chandigarh, Plot No 141 - 142 Derabassi, Punjab Bangihatti District Hooghly, West Bengal Thelkoloi, Orissa
Marketing Offices :	North Amritsar Baddi Chandigarh Delhi Derabassi Faridabad Indore Jammu Jalandhar Ludhiana Panchkula Ranchi Mandi Gobindgarh Parwanoo Una Kullu Manesar Ghaziabad (UP) South Hosur Bangalore Chennai Vijayawada Hyderabad East Guwahati (Assam) Kolkata Patna Gulabbagh (Bihar) Bhubaneshwar Sambalpur Siliguri Janshedpur (Jharkhand) West Mumbai Pune Aurangabad Ahmedabad Rajkot
Branches :	Located at: CHANDIGARH OFFICE Plot No. 3, Industrial Area, Phase - I Chandigarh - 160 002, India Phone : 91-172-3911702, 3911703 Fax : 91-172-3911704 E-mail : chandigarh@bpsl.net ORISSA OFFICE Vill. Thelkoloi, P.O. Lapanga Tehsil - Rengoli, Distt. Sambalpur - 768 232 Orissa, India Phone: 91-663-2535000, 2562026-32 Fax: 91-663-2562007, 2562011 E-mail : orissa@bpsl.net DERABASSI OFFICE Chandigarh Ambala Road Derabassi - 140 507, Distt. Patiala Punjab, India Phone: 91-1762-307900, 307901 Fax: 91-1762-307902 E-mail : bhushandrb@bpsl.ne KOLKATA OFFICE J.K. Millennium Center, 6th Floor, 46-D, Jawahar Lal Nehru Road Kolkata - 700 071 Phone : 91-33-30512299, 30512332, 3052333 Fax: 91-33-30512235, 30512297 E-mail : kolkata@bpsl.net

DIRECTORS

Name :	Mr. Sanjay Singal
Designation :	Chairman and Managing Director
Address :	61, Sector 5, Chandigarh, India
Date of Birth/Age :	19.06.1960
Date of Appointment :	22.02.1999
Name :	Mr. Aarti Singal
Designation :	Vice Chairperson and Whole Time Director (Admin)
Address :	61, Sector 5, Chandigarh, India
Date of Birth/Age :	08.03.1961
Date of Appointment :	30.03.2010
Name :	Mr. Ravi Prakash Goyal
Designation :	Whole Time Director (Commercial)
Address :	House No. 157, Sector 16, Panchkula – 134112, Haryana, India
Date of Birth/Age :	09.09.1951
Date of Appointment :	01.03.2006
Other Directorship :	Marble Finvest Limited U65910CH1998PTC021285 Pittie Stripes Private Limited U27100MH1991PTC060692
Name :	Mr. Hardev Chand Verma
Designation :	Whole Time Director (Marketing)
Address :	House No. 1258, Near old Post Office, Mani Majra, Chandigarh – 160002, India
Date of Birth/Age :	15.11.1952
Date of Appointment :	01.03.2006
Other Directorship :	ASL Investments Private Limited U67120DL1999PLC102461 Adhunik Investments Private Limited U67120DL1999PLC102460 Décor Investment and Finance Private Limited U00000DL1994PTC060843 Classic Transportation Private Limited U00000DL1996PTC074322 Track Casting India Private Limited U99999DL1995PTC069880
Name :	Mr. Ram Naresh Yadav
Designation :	Whole Time Director (Technical)
Address :	Flat No. 35, Vasant Apartment, Mayur Vihar, Phase – 1, New Delhi, India
Date of Birth/Age :	16.07.1959
Date of Appointment :	14.06.2003
Name :	Mr. Ram Dev Batra
Designation :	Director
Address :	4148, Pocket 4, Sector D, Vasant Kunj, New Delhi -110001, India
Date of Birth/Age :	16.05.1936
Date of Appointment :	01.03.2001
Name :	Mr. Dinesh Kumar Behal
Designation :	Director
Address :	House No. 3235, Phase – II, Dugri Road, Urban Estate, Ludhiana, Punjab, India
Date of Birth :	19.02.1958
Date of Appointment :	19.06.2006
Name :	Mr. Jimmy Lachmandas Mahtani
Designation :	Director
Address:	APT BLKI, Chatsworth Road, #22-21, Singapore
Date of Birth :	27.10.1976
Date of Appointment :	29.08.2007
Name :	Mr. Anil S. Supanekar
Designation :	Director
Address :	694/2, Swami Kripa Apartments, Market Yard Road, Pune, Maharashtra, India
Date of Birth/Age :	24.10.1940
Date of Appointment :	29.09.2006
Name :	Mr. Ashwini Kumar Sharma
Designation :	Nominee Director – IDBI
Address :	D-7, Kenellan, 100A, Nepeansea Road, Mumbai, Maharashtra, India
Date of Birth/Age :	19.11.1947
Date of Appointment :	30.03.2010

KEY EXECUTIVES

Name :	Mr. Ravinder Kumar Gupta --
Designation :	Secretary
Address :	2147/3, Sec 45 C, Chandigarh – 160002, Punjab, India
Date of Birth/Age :	31.05.1958
Date of Appointment :	21.09.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2010

Names of Shareholders	No. of Shares
B. B. Singal	52328
Sanjay Singal	11079325
Neeraj Singal	346576
B. B. Singal - HUF	124465
B. B. Singal - HUF Smaller	8815
Sanjay Singal – HUF	256450
Priyanka Singal	1000895
Radhika Singal	1000220
Sanjay Singal Neeraj Singal Family Trust	45217
Kishori Lal – HUF	43459
Devi Shanti	61164
Singal Uma	350268
Singal Aarti	5960613
Singal Aniket Through Sanjay Singal	1045480
Mittal Archana	881559
Singal Ashwarya Through Neeraj Singal	8711
Singal Ritu	294813
Punjab National Bank	2934
Supanekar Anuradha	10000
Baring Private Equity Asia III Mauritius Holdings (3) Limited	10714285
Jasmine steel Trading Limited	25033777
Marsh Steel Trading Limited	25047038
Diyajyoti Steel Limited	25039691
Vision Steel Limited	27643582
Total	136051665

As on 20.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	7.88
Bodies corporate	75.53
Directors or relatives of directors	16.58
Other top fifty shareholders	0.01
	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Flat, Round and value added products in Steel.

Products :

v HR Coil

v Steel Billets

v Alloy Steel Rounds

v Tor Steel

v Wire Rods

v Pig Iron

v Sponge Iron

v Power

v CR Coils

v Narrow CR Coils

v CR Sheets

v Precision Tubes (ERW and CEW)

v Cable Tapes

v Black Pipe

v GI Pipe

v GP Coils / Sheets

v GP Corrugated Sheets

Product	ITC Code
Flat Cold Rolled products of Iron or Non Alloy Steels of a width of less than 600 mm not further worked.	721119.00
ERW Precision Tubes	730690.01
Corrugated Coated with zinc cold rolled products of Iron or Non-Alloy Steel of width 600 mm or more.	721041.00
Rolled Products	721491.09
Flat Rolled products of Iron or Non – Alloy Steels, of a width of 600 mm or more, Hot Rolled, Not Clad, plated or coated.	720810.00

Exports :

Countries :

v China

v Singapore

v Malaysia

v Hong Kong

v Indonesia

v Philippines

v Dubai

v Oman

v Saudi Arabia

v South Africa

v Thailand

v Korea

v Myanmar

v Sri Lanka

v Nepal

v Bangladesh

v Vietnam

v USA

v Nepal

v England

v Belgium

v Turkey

v African countries

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Sinter	M.T.	1000000	503965
H.R. Coil	M.T.	900000	591785
Sponge Iron	M.T.	900000	490535
Pig Iron	M.T.	700000	309692
Metallurgical Coke	M.T.	450000	404053
Cold Rolled Steel Strips/Sheets/Coils	M.T.	400000	529213
Iron and Non Alloy Steel Ingots/Billets and Other Hot Rolled Products.	M.T.	335000	175896
Bars, Rods of Alloys Steel, Iron and Non Alloy Steel and Other Hot Rolled Products	M.T.	125000	137639
Galvanised Steel Strips/Sheets	M.T.	120000	124788
Black and Galvanised Steel Tubes and Pipes and ERW Precision Tubes	M.T.	120000	145957
Cable Tape	M.T.	20000	16068

GENERAL INFORMATION

Customers :

v Hero Honda

v Honda Scooters

v Yamaha Motorcycles

v JBM

v Bajaj Autos

v LML Limited

v Polar Industries

v GE Motors

v BPL

v HMT

v GNA group

v Hero Cycles

v Avon Cycles

v Atlas Cycles

v Delton Cables

v Finolex Cables

v Sterlite

v Paramount Cables

v TBS

v Suzuki

v Omax Auto

v Maruti Udyog Limited

No. of Employees :

Above 1000

Bankers :

v Indusind Bank Limited, 2401, General Thimayya Road, Cantonment, Pune – 411001, Maharashtra, India

v Punjab National Bank, MID Corporate Branch, Sector – 17-B, Chandigarh, India

v Export Import Bank of India, Centre One Building Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

v Bank of Maharashtra, South Extension, Part – 1, A-13, Ring Road, New Delhi – 110049, Delhi, India

v Dena Bank, 25, Rajendra Place, Gopala Tower, 1^st Floor, New Delhi – 110008, Delhi, India

v State Bank of Mysore, Corporate Accounts Branch, 3,4 and 5, DDA Building, Nehru Place, New Delhi – 110019, Delhi, India

Facilities :

Secured Loans	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Debentures
500, 6% optionally fully convertible debentures of Rs.1.000 million each	--	500.000
500, 8% optionally fully convertible debentures of Rs.1.000 million each	--	500.000
5000, Mibor Linked Non-Convertible Debentures of Rs.1.000 million each	--	5000.000
Working Capital Loans from
- Banks
- Rupee Loan	6770.509	5155.783
- Foreign currency Loan	6265.633	3308.520
Term Loans From
- Banks
- Rupee Loan	68358.592	52612.430
- Foreign currency Loan	37694.838	22210.077
- Financial Institutions
- Rupee Loan	--	40.000
Deferred Credits from
- Banks	40.804	150.619
Total	119130.376	89477.429

Unsecured Loans	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Commercial Paper	500.000	2000.000
Rupee Loan from Banks	13788.346	11733.921
Foreign Currency loan	981.460	1876.921
Total	15269.806	15610.842

Banking Relations :	--
Auditors :
Name :	Mehra Goel and Company Chartered Accountants
Address :	505, Chiranjiv Tower, Nehru Place, New Delhi – 110019, India
E-Mail :	mg@mehragoelco.com
Website :	http://www.mehragoelco.com
Name :	Ram Kumar Mehra Chartered Accountant
Address :	505, Chiranjiv Tower, Nehru Place, New Delhi – 110019, India
Joint Venture :	Rohne Coal Company Private Limited
Associates :	SMS Demag, Germany Supply of CSP Plant Siemens, Germany Supply of Electrical, Automation andSpare parts Design Waldrich Siegen, Germany Supply of Roll Grinding Machine and Design and Training Techint Tagliaferry, Italy Supply of Electric Arc Furnace, Ladle Furnace / Relevant Auxiliaries Beijing Sino–Steel and Group Corporation (SSIT), China Industry Supply of Blast furnace plant, Blower for furnace, Sinter Plant andCoke Oven Plant IMS Messsysteme, Germany Supply of Compact Gauging System for CSP Techint Italimpianti, Germany Supply of Roller Hearth Tunnel Furnace Mecon Limited, India Technical Consultant
Subsidiaries :	ASL Investments Private Limited U67120DL1999PLC102461 Adhunik Investments Private Limited U67120DL1999PLC102460 Décor Investment and Finance Private Limited U00000DL1994PTC060843 Classic Transportation Private Limited U00000DL1996PTC074322 Track Casting India Private Limited U99999DL1995PTC069880

CAPITAL STRUCTURE

(As on 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
20,00,00,000	Equity Shares	Rs.10/- each	Rs.2000.000 millions
50,00,000	Preference Shares	Rs.100/- each	Rs.500.000 millions
	Total		Rs.2500.000 millions

Issued Subscribed:

No. of Shares	Type	Value	Amount
13,60,51,665	Equity Shares	Rs.10/- each	Rs.1360.517 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,60,51,665	Equity Shares	Rs.10/- each	Rs.1360.517 millions

Note:

Above includes 3,51,52,240 Equity Shares of Rs.10/- each fully paid up issued pursuant to the scheme of Amalgamation of Bhushan Industries Limited, Bhushan Metallics Limited, and Decor Steel Limited with the company.

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		1360.517	1360.517	1360.517
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24831.769	20461.114	17913.026
4] Advance Received for the Share Capital		11032.200	5739.000	2750.000
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		37224.486	27560.631	22023.543
LOAN FUNDS
1] Secured Loans		119130.376	89477.429	70835.800
2] Unsecured Loans		15269.806	15610.842	9528.088
TOTAL BORROWING		134400.182	105088.271	80363.888
DEFERRED TAX LIABILITIES		5158.309	3538.309	2739.309
TOTAL		176782.977	136187.211	105126.740
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		78342.430	61042.898	58031.079
Capital work-in-progress		70510.185	50298.744	30278.781
INVESTMENT		891.615	5791.306	52.409
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23462.840	10589.104	10439.980
	Sundry Debtors	8627.974	7983.572	7907.262
	Cash & Bank Balances	4510.672	4814.384	4609.436
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10413.764	7119.121	5238.799
Total Current Assets		47015.250	30506.181	28195.477
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19405.249	10911.905	11144.411
	Other Current Liabilities	189.220	393.754	178.631
	Provisions	382.034	146.259	107.964
Total Current Liabilities		19976.503	11451.918	11431.006
Net Current Assets		27038.747	19054.263	16764.471
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		176782.977	136187.211	105126.740

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	46784.390	40085.259	43752.594
		Other Income	201.876	560.409	404.703
		TOTAL (A)	46986.266	40645.668	44157.297
Less	EXPENSES
		Manufacturing and Other Expenses	32947.697	29473.619	33279.274
		TOTAL (B)	32947.697	29473.619	33279.274
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14038.569	11172.049	10878.023
Less	INTEREST & FINANCIAL EXPENSES (D)		4295.941	4062.927	3851.265
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9742.628	7109.122	7026.758
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3729.227	3752.615	3002.234
	PROFIT BEFORE TAX (E-F) (G)		6013.401	3356.507	4024.524
Less	TAX (H)		1634.840	800.460	762.917
	PROFIT AFTER TAX (G-H) (I)		4378.561	2556.047	3261.607
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5507.449	5334.361	4205.713
Less	APPROPRIATIONS
		General Reserve	2000.000	1000.000	2000.000
		Transferred to Debenture Redemption Reserve	0.000	1375.000	125.000
		Proposed Dividend	6.803	6.803	6.803
		Dividend Tax	1.103	1.156	1.156
	BALANCE CARRIED TO THE B/S		7878.104	5507.449	5334.361
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	8345.148	10868.623
		Interest	NA	52.093	82.228
	TOTAL EARNINGS		NA	8397.241	10950.851
	IMPORTS
		Raw Materials	NA	6459.127	9741.520
		Stores & Spares	NA	819.354	463.427
		Capital Goods	NA	4771.640	7398.621
	TOTAL IMPORTS		NA	12050.121	17603.568
	Earnings Per Share (Rs.)
	- Basic		32.18	18.79	23.97
	- Diluted		26.17	17.62	22.59

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.31	6.29	7.39
Net Profit Margin (PBT/Sales)	(%)	12.85	8.37	9.20
Return on Total Assets (PBT/Total Assets}	(%)	4.79	3.67	4.67
Return on Investment (ROI) (PBT/Networth)		0.16	0.12	0.18
Debt Equity Ratio (Total Liability/Networth)		4.14	4.23	4.17
Current Ratio (Current Asset/Current Liability)		2.35	2.66	2.47

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U27100DL1999PLC108350
Name of the company	BHUSHAN POWER AND STEEL LIMITED
Address of the registered office or of the principal place of business in India of the company	4^th Floor, Tolstoy House, 5-17, Tolstoy Marg, Connaught Place, New Delhi – 110001, India
E-mail Id of the company	rkguptacs@yahoo.co.in
Type of charge	v Movable Property v Book Debts
Particular of charge holder	Bank of Maharashtra, South Extension, Part – 1, A-13, Ring Road, New Delhi – 110049, Delhi, India
e-mail ID	eximndro@eximbankindia.in
Nature of description of the instrument creating or modifying the charge	Composite Deed of Hypothecation for all facilities executed on 28.09.2010 by the Company in favour of Bank of Maharashtra.
Date of instrument Creating the charge	28.09.2010
Amount secured by the charge	Rs. 1500.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Base Rate plus 1.50% = 9.75% p.a. to be paid on monthly basis or as amended by the Bank from time to time. Terms of repayment : Rs. 500 Millions per year in 3 years Repayment to commence after expiry of 4 years from the date of 1^st disbursement. Installment to be paid at the end of 4^th year, 5^th year and 6^th year from the date of 1^st disbursement. Margin : Nil Extent operation of the charge : 100% Others : The Term loan shall be also secured by 1^st pari passu charge on fixed assets of the Company excluding the assets which are specifically charged to other lenders.
Short particulars of the property charged	First pari passu charge and security by way of hypothecation of charge in favour of the Bank of Maharashtra over the Borrower’s present and future movable plants, machineries, goods, stocks of Raw Materials, Items, Inventories, Stock in trade, goods in process, movables in transit (Excluding assets specifically charged to other lenders) and present and future tangible and intangible assets, vehicles, goodwill, trademark, copyright, patent and all the right title interest and benefit of the borrower in upon or over all contracts and agreements and amounts and right to collect, receive and recover the same together with all movables, situated or located at any place and now lying, being, affixed or installed at any place at any time and all outstanding monies, claims, bills, receivables, Book Debts due or become due to the borrowers at any time or from time to time, and all of the borrowers right’s, titles or interest therin.

FIXED ASSETS

v Freehold Land

v Lease Hold Land

v Building

v Railway Siding

v Plant and Machinery

v Furniture and Fixture

v Vehicles

v Intangible Assets – Technical Knowhow

CONTINGENT LIABILITY:

Particulars	31.03.2010 (Rs. in Millions)
Outstanding Guarantees furnished to Banks and Financial institutions including in respect of letters of credit (availed by the company)	3321.975
Cheque / DD and bills discounted with banks	1688.081
Claims against the Company not acknowledged as debt	0.367
Central / State Sales Tax Act	135.465
Orissa Entry Tax Act	23.452
Central Excise Act, 1944	144.164
Income Tax Act, 1961	46.042
Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)	9469.163
On behalf of joint venture	1.035

WEBSITE DETAILS:

History

Growing from strength to strength

1970 - Started with very small initial outlay for manufacturing Door Hinges & later on, Rail Track Fasteners.

1973 - Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.

1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.

1985 - Backward Integration Project for Steel Melting facilities.

1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities. 1997 - Commissioning of Narrow Width Cold Rolling Project at Chandigarh.

1998 - Commissioning of Precision Pipe Project at Chandigarh.

2001 - Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.

2002 - Addition of narrow width Cold Rolling facilities at Kolkata.

2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down stream facilities at Kolkata.

2004 - Further expansion of Cold Rolling facilities at Kolkata.

2005 - Commissioning of Orissa Project consisting of 4 DRI Kilns, Steel Making Facilities, Coal Washery and 100 MW Power Plant.

2007 - Commissioning of further expansion of Orissa Project consisting of HR Coil Mill, Steel making, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime & Calcining Plant.

2009 - Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant and 0.3 million tpa Sponge Iron under Phase III of Orissa Project.

2010 - Commissioning of 130 MW Power Plant and Electric Arc Furnace under Phase III of Orissa Project and further expansion of Orissa Project under Phase IV consisting of 6 DRI Kilns, 130 MW Power Plant, Steel Making Facilities, 6th strand, 2nd CSP Caster & Tunnel Furnace, Oxygen Plant, Lime Calcining with downstream facilities - Cold Rolling, Galvanizing, Galvalume, Colour Coating, Precision Tube & Black Pipe/GI Pipe.

2011 - Commissioning of two DRI Kilns, Electric Arc Furnace, 2nd CSP Caster & 6th Strand along with Tunnel Furnace, Cold Rolling Mill Complex and Galvanising under Phase-IV of Orissa Project.

PROFILE:

Subject, a fully integrated 2.3 Million TPA Steel making Company with turnover of INR 42170.000 millions (USD 937 Million) and 7 World Class ISO 9000 Certified State of the Art Plants at Chandigarh, Derabassi, Kolkata and Orissa in India.

A leading manufacturer of flat, rounds and long products including value added products with total steel value chain right from Coal Mining, Billets, HR Coils, Pig Iron, CR Coils, GP/GC, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Wire Rod and Special Alloy Steel.

Successfully commissioned 2.3 Million TPA Greenfield Steel and Power Plant in Orissa with HR Coil making facility

—First in Private Sector in the State of Orissa. For the Orissa plant, technology and equipments are procured from world-renowned companies like Lurgi from Germany, ABB Limited, SMS Siemag etc. Bhushan is selling its Value added range of products in Secondary Steel through a large distribution network in India (comprising more than 35 sales offices) and Abroad.

A rock-solid foundation combined with continuous upgradation and innovation has ensured that they have constantly surpassed their goals. Their end-to-end portfolio offers a wide spectrum of products with consistently superior quality. In addition to their export thrust, they supply to fast-growing sectors like automotive, white goods, construction, furniture, fasteners, telecommunication, etc.

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.49.67
UK Pound	1	Rs.76.50
Euro	1	Rs.66.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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.