MIRA INFORM REPORT

Report Date :

12.12.2012

IDENTIFICATION DETAILS

Name :	SKS ISPAT AND POWER LIMITED
Registered Office :	501B, Elegant Business Park, Andheri Kurla Road, J. B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.04.2000
Com. Reg. No.:	11-125893
Capital Investment / Paid-up Capital :	Rs.465.704 Millions
CIN No.: [Company Identification No.]	U27100MH2000PLC125893
TAN No.: [Tax Deduction & Collection Account No.]	MUMS28171D
PAN No.: [Permanent Account No.]	AAECS3299N
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Structural Steel with integrated facilities like Power Plant, Steel Melting Shop, Sponge Iron, Rolling Mills and Coal Washery.
No. of Employees :	1000 (Approximately) (In Office + In Factory + In Branches)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 24000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company us good. Trade relations are reported as fair. Business is active. Payments are reported is active. Payments are reported to be regular and as per commitments. The company cab 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

INFORMATION PARTED BY

Name :	Mr. Sominathan
Designation :	Account Manager
Contact No.:	91-22-30807000

LOCATIONS

Registered Office :	501B, Elegant Business Park, Andheri Kurla Road, J. B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-30807063 / 30807000
Fax No.:	91-22-30807070 / 80
E-Mail :	corporateoffice@sksispat.com
Website :	http://www.sksispat.com/
Factory 1 :	Phase-II, Industrial Growth Centre, Village Siltara, 18^th Mile Stone, Bilaspur –Raipur Road, Raipur-493111, Chattisgarh, India
Tel. No.:	91-7721-264380
Fax No.:	91-7721-264378 / 77
E-Mail :	works@sksispat.com
Branch Office :	Located at Chhattisgrah Gujarat New Delhi Jharkhand

DIRECTORS

As on 30.09.2011

Name :	Mr. Anil Mahabir Gupta
Designation :	Managing director
Address :	4^th Floor, Nirmal Pran\bhu, Road No.7, J.V.P.D. Scheme, Vile Parle (West), Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	23.11.1968
Date of Appointment :	01.02.2012
DIN No.:	00046213

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27100MH2000PLC125893	SKS ISPAT AND POWER LIMITED	Managing director	01-02-12	17-04-00	-	Active	NO
2	U63010WB1994PTC066953	RADHA KRISHNA ROADWAYS PRIVATE LIMITED	Managing director	12-04-04	12-04-04	01-04-08	Active	NO
3	U45202MH2007PTC173666	INDO EMIRATES BUILDING SYSTEMS PRIVATE LIMITED	Additional director	15-02-08	15-02-08	03-10-08	Strike off	NO
4	U27109WB2005PTC103275	INDO EMIRATES BUILDING SOLUTIONS PRIVATE LIMITED	Director	29-09-10	15-02-08	-	Active	NO
5	U40102MH2008PLC179495	SKS POWER GENERATION LIMITED	Director	27-02-08	27-02-08	-	Strike off	NO
6	U40103MH2008PLC180231	SKS POWER GENERATION (CHHATTISGARH) LIMITED	Director	18-03-08	18-03-08	-	Active	NO
7	U40101MH2008PLC180742	SKS POWER TRADING LIMITED	Director	02-04-08	02-04-08	-	Active	NO
8	U26940MH2008PLC180732	SKS CEMENTS LIMITED	Director	02-04-08	02-04-08	-	Active	NO
9	U40101MH2008PLC180730	SKS POWER GENERATION (JHARKHAND) LIMITED	Director	02-04-08	02-04-08	-	Active	NO
10	U40101MH2008PLC180729	SKS POWER GENERATION (MADHYA PRADESH) LIMITED	Director	02-04-08	02-04-08	-	Active	NO
11	U10100CT2008PTC020663	FATEHPUR COAL MINING COMPANY PRIVATE LIMITED	Nominee director	19-05-08	19-05-08	31-03-11	Active	NO
12	U27109CT2004PTC016489	GUPTA STEEL CORPORATION PRIVATE LIMITED	Director	28-09-10	20-01-10	-	Active	NO
13	U27101CT1995PTC009316	SHREE KRISHNA STRUCTURES PRIVATE LIMITED	Director	28-09-10	20-01-10	-	Active	NO
14	U27109WB2005PTC103270	LAMBODAR ISPAT PRIVATE LIMITED	Director	29-09-10	15-03-10	-	Active	NO
15	U27109WB2005PTC103281	SKS MINERALS AND MINING COMPANY PRIVATE LIMITED	Director	29-09-10	15-03-10	-	Active	NO
16	U27109WB2005PTC103269	PADMA ISPAT PRIVATE LIMITED	Director	29-09-10	15-03-10	-	Active	NO
17	U27109WB2005PTC103280	VIGHNESH STEELS PRIVATE LIMITED	Director	29-09-10	15-03-10	-	Active	NO
18	U40109MH2011PLC211947	SKS POWER HOLDINGS LIMITED	Director	06-01-11	06-01-11	-	Active	NO
19	U51109WB2006PTC108331	CITYWINGS AGENCIES PRIVATE LIMITED	Director	01-03-11	01-03-11	-	Active	NO
20	U74999WB2011PTC166380	GLOBAL POLYFILMS PRIVATE LIMITED	Director	12-08-11	12-08-11	-	Active	NO

Name :	Mr. Deepak Gupta
Designation :	Managing director
Address :	H No. B/1, College Ward, Taluka Raipur, District Raipur, Chhattisgarh, India
Date of Birth/Age :	09.01.1974
Date of Appointment :	01.04.2012
DIN No.:	00645211

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27100MH2000PLC125893	SKS ISPAT AND POWER LIMITED	Managing director	01-04-12	01-08-04	-	Active	NO
2	U45200CT2007PTC020335	SHREE KRISHNA INFRATECH PRIVATE LIMITED	Director	02-08-07	02-08-07	09-04-08	Active	NO
3	U45202MH2007PTC173666	INDO EMIRATES BUILDING SYSTEMS PRIVATE LIMITED	Additional director	28-09-07	28-09-07	03-10-08	Strike off	NO
4	U40103MH2008PLC180231	SKS POWER GENERATION (CHHATTISGARH) LIMITED	Director	30-09-09	16-04-08	-	Active	NO
5	U10100CT2008PTC020663	FATEHPUR COAL MINING COMPANY PRIVATE LIMITED	Nominee director	19-05-08	19-05-08	-	Active	NO
6	U40101MH2008PLC180729	SKS POWER GENERATION (MADHYA PRADESH) LIMITED	Director	30-09-09	11-09-08	-	Active	NO
7	U26940MH2008PLC180732	SKS CEMENTS LIMITED	Director	30-09-09	11-09-08	-	Active	NO
8	U40101MH2008PLC180730	SKS POWER GENERATION (JHARKHAND) LIMITED	Director	30-09-09	11-09-08	-	Active	NO
9	U40102MH2008PLC179495	SKS POWER GENERATION LIMITED	Additional director	15-03-10	15-03-10	-	Strike off	NO
10	U40101MH2008PLC180742	SKS POWER TRADING LIMITED	Director	30-09-10	15-03-10	-	Active	NO
11	U40109MH2011PLC211947	SKS POWER HOLDINGS LIMITED	Director	06-01-11	06-01-11	-	Active	NO

Name :	Mr. Prasanna Kumar Mishra
Designation :	Director
Address :	Gangotri, BJ - 26, BJB Nagar, Bhubaneshwar - 751 014, Orissa, India
Date of Birth/Age :	15.02.1944
Date of Appointment :	30.03.2007
DIN No.:	00888286

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74210OR2005PTC008044	QUALITY MINING SOLUTIONS PRIVATE LIMITED	Director	01-03-05	01-03-05	-	Active	NO
2	U27100MH2000PLC125893	SKS ISPAT AND POWER LIMITED	Director	30-03-07	30-03-07	-	Active	NO
3	U85320OR2003NPL007145	SWAYAMSHREE MICRO CREDIT SERVICES	Director	30-08-08	30-08-08	-	Active	NO
4	U27102WB2004PLC098638	JAIN STEEL AND POWER LIMITED	Director	21-09-09	05-01-09	16-11-09	Active	NO
5	U74140OR2004PTC007684	BRAMHANI CONSULTANTS PRIVATE LIMITED	Director	15-01-09	15-01-09	-	Strike off	NO

Name :	Mr. Ravindranath Ratho
Designation :	Whole-time director
Address :	Flat No. 18, 5th Floor, Somavarapur Towers, Rajbhavan Road, Somajiguda, Hyderabad - 500 082, Andhra Pradesh, India
Date of Birth/Age :	25.10.1958
Date of Appointment :	01.02.2012
DIN No.:	00076468

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U40102AP1995PLC022310	YJKR POWERGEN LIMITED	Director	09-02-04	09-02-04	04-03-08	Active	NO
2	U10100AP1995PLC022107	KAMLALAYA STEELCO LIMITED	Director	18-08-04	18-08-04	06-08-12	Active	NO
3	U27100MH2000PLC125893	SKS ISPAT AND POWER LIMITED	Whole-time director	01-02-12	29-09-07	-	Active	NO
4	U45202MH2007PTC173666	INDO EMIRATES BUILDING SYSTEMS PRIVATE LIMITED	Additional director	15-02-08	15-02-08	03-10-08	Strike off	NO
5	U27109WB2005PTC103275	INDO EMIRATES BUILDING SOLUTIONS PRIVATE LIMITED	Director	30-09-08	15-02-08	03-10-08	Active	NO
6	U40102MH2008PLC179495	SKS POWER GENERATION LIMITED	Director	27-02-08	27-02-08	-	Strike off	NO
7	U40103MH2008PLC180231	SKS POWER GENERATION (CHHATTISGARH) LIMITED	Director	18-03-08	18-03-08	-	Active	NO
8	U40101MH2008PLC180742	SKS POWER TRADING LIMITED	Director	02-04-08	02-04-08	-	Active	NO
9	U26940MH2008PLC180732	SKS CEMENTS LIMITED	Director	02-04-08	02-04-08	-	Active	NO
10	U40101MH2008PLC180730	SKS POWER GENERATION (JHARKHAND) LIMITED	Director	02-04-08	02-04-08	-	Active	NO
11	U40101MH2008PLC180729	SKS POWER GENERATION (MADHYA PRADESH) LIMITED	Director	02-04-08	02-04-08	-	Active	NO
12	U10100CT2008PTC020663	FATEHPUR COAL MINING COMPANY PRIVATE LIMITED	Nominee director	19-05-08	19-05-08	08-08-11	Active	NO
13	U40109MH2011PLC211947	SKS POWER HOLDINGS LIMITED	Director	06-01-11	06-01-11	-	Active	NO

Name :	Mr. Varanasi Janardhan Rao
Designation :	Director
Address :	6/2, Maitri Nagar, Risali, Bhilai, Durg - 491 001, Chhattisgarh, India
Date of Birth/Age :	27.05.1955
Date of Appointment :	24.03.2009
DIN No.:	02608883

KEY EXECUTIVES

Name :	Mr. Sominathan
Designation :	Account Manager
Name :	Mr. Rajini Kanth Mulugu
Designation :	Secretary
Address :	S/2-303, Malad Kokil CHS. Limited, Sundernagar, S. V. Road, Malad (West), Mumbai - 400 069, Maharashtra, India
Date of Birth/Age :	22.08.1976
Date of Appointment :	01.02.2010
PAN No.;	AVTPM9512H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Anil Gupta	5086000
Deepak Gupta	14100
Indo Emirates Building Solutions Private limited, India	1550000
Lambodar Ispat Private limited, India	1370000
SKS Minerals & Mining Company Private limited, India	1351400
Sangeeta Gupta	12000
Shree Krishna Structures Private limited, India	10376400
Shares in Demat form	26810450
Total	46570350

As on 30.09.2011

Shares in Demat form

Names of Shareholders	No. of Shares
Anil Gupta	4100
Brilliant Dealcomm Private limited, India (Merged with Citywings Agencies Private limited)	2155350
Deepak Gupta	4100
Frontline Dealers Private limited, India (Merged with Citywings Agencies Private limited)	1500000
Gupta Steel Corporation Private limited, India	2779900
Padma Ispat Private limited, India	2307100
Pratham Vintrade Private limited, India (Merged with Citywings Agencies Private limited)	2956500
Sangeeta Gupta	4100
Shree Krishna Structures Private Limited, India	12357300
Vighnesh Steels Private Limited, India	2742000
Total	26810450

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	89.00
Directors or relatives of Directors	11.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Structural Steel with integrated facilities like Power Plant, Steel Melting Shop, Sponge Iron, Rolling Mills and Coal Washery.

Products :

Product Description	Item Code No.
Iron, Steel and Power	72

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Sponge Iron	M.T.	270,000	225,121
Billet / Blooms	M.T.	345,6000	91,904
Rolled Products	M.T.	224,000	144,673
TMT / Wire Rod	M.T.	233,000	63,108
Ferro Alloys Plant	M.T.	28,300	7,286
Power Plant	MW / KWH	85MW	321,97,265KWH

Notes:

1) In terms of Press Note No.4(1994 series) dated 25.10.1994 issued by the Department if Industrial Development, Ministry of Industry, Government of India, industrial licensing has been abolished.

2) Installed capacities, being a technical matter, have not been verified by the Auditors

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and Manufacturers

No. of Employees :

1000 (Approximately) (In Office + In Factory + In Branches)`

Bankers :

State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	3482.576	3122.479
Rupee term loans others secured	849.510	500.000
Working capital loans banks secured	2366.728	196.370
Foreign currency loans banks secured	0.000	2288.588
Loans taken for vehicles secured	25.816	34.316
Other debt secured	150.000	150.000
Total	6874.630	6291.753
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks unsecured	335.389	0.000
Loans subsidiaries unsecured	200.000	900.000
Total	535.389	900.000

Banking Relations :	--
Auditors :
Name :	Kapoor and Parikh Associates Chartered Accountants
Address :	Zaveri Building, 1st Floor, 157 Princess Street, Mumbai – 400002, Maharashtra, India
PAN.:	AACPP9863E
Holding Company :	Citywings Agencies Private Limited
Subsidiaries :	SKS Power Generation (Chhatisgarh) Limited SKS Power Generation (Madhya Pradesh) Limited SKS Power Generation (Jharkhand) Limited SKS Power Trading Limited SKS Cements Limited SKS Power Generation Limited Shree Krishna Steels Global Pte Limited SKS Power Holdings Limited
Associates and Joint Venture :	Gupta Steel Corporation Private Limited Surya Infra venture Private Limited Fatehpur Coal Mining Company Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46570350	Equity Shares	Rs.10/- each	Rs.465.704 Millions

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		465.704	361.940	361.940
2] Share Application Money		0.000	234.550	0.000
3] Reserves & Surplus		5592.492	4318.210	3716.877
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6058.196	4914.700	4078.817
LOAN FUNDS
1] Secured Loans		6874.630	6291.753	5037.936
2] Unsecured Loans		535.389	900.000	650.000
TOTAL BORROWING		7410.019	7191.753	5687.936
DEFERRED TAX LIABILITIES		790.180	720.063	595.544
TOTAL		14258.395	12826.516	10362.297
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7364.953	7137.159	5418.403
Capital work-in-progress		1286.115	865.547	1198.255
INVESTMENT		17.552	14.940	15.440
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3171.131	2973.629	3039.998
	Sundry Debtors	856.832	851.547	1024.825
	Cash & Bank Balances	401.292	273.636	202.598
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2695.383	1456.408	421.157
Total Current Assets		7124.638	5555.220	4688.578
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1401.884	607.886	820.793
	Other Current Liabilities	115.667	91.683	68.456
	Provisions	17.312	46.781	69.130
Total Current Liabilities		1534.863	746.350	958.379
Net Current Assets		5589.775	4808.870	3730.199
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14258.395	12826.516	10362.297

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	9783.212	9627.991	9661.842
		Other Income	306.431	197.434	148.590
		TOTAL (A)	10089.643	9825.425	9810.432
Less	EXPENSES
		Consumption materials changes inventories	7832.962	7477.720
		Manufacturing service costs	285.067	334.437
		Contract cost	13.294	12.083
		Employee related expenses	116.542	112.023
		Administrative selling other expenses	293.247	370.208
		TOTAL (B)	8541.112	8306.471	8183.099
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1548.531	1518.954	1627.333
Less	FINANCIAL EXPENSES (D)		805.367	459.260	557.209
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		743.164	1059.694	1070.124
Less/ Add	DEPRECIATION/ AMORTISATION (F)		413.649	313.347	282.880
	PROFIT BEFORE TAX (E-F) (G)		329.515	746.347	787.244
Less	TAX (I)		86.019	145.014	126.701
	PROFIT AFTER TAX (G-I) (J)		243.496	601.333	660.543
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2668.480	2067.147	1406.604
	BALANCE CARRIED TO THE B/S		2911.976	2668.480	2067.147
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	404.777	4.487
	TOTAL EARNINGS		NA	404.777	4.487
	IMPORTS
		Raw Materials		916.629	0.000
		Stores & Spares	NA	1.315	2.801
		Capital Goods		15.089	227.640
	TOTAL IMPORTS		NA	933.033	230.441
	Earnings Per Share (Rs.)		6.72	16.04	18.29

Expected Sales (2011-2012) : Rs.12000.000 Millions

The above information has been parted by Mr. Sominathan.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.41	6.12	6.73
Net Profit Margin (PBT/Sales)	(%)	3.37	7.75	8.15
Return on Total Assets (PBT/Total Assets}	(%)	2.27	5.89	7.79
Return on Investment (ROI) (PBT/Networth)		0.05	0.15	0.19
Debt Equity Ratio (Total Liability/Networth)		1.48	1.62	1.63
Current Ratio (Current Asset/Current Liability)		4.64	7.44	4.89

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

The Company has achieved a Turnover of Rs.9783.212 Millions during the financial year as against Rs.9627.991 Millions during the previous year. The EBDITA has increased marginally to Rs.1691.692 Millions from Rs.1668.986 Millions despite two of the turbines were out of operation for 3-5 months. The Profit after tax has declined due to higher interest, and depreciation. The directors are confident that increased power availability attributed to the commissioning of the 30MW power plant coupled with the stabilization and scaling up of production facilities shall result in higher profit margins in the coming years.

OPERATIONS:

Operations of various production facilities, viz. Four DRI kilns, SMS comprising 8 nos of Induction Furnaces and Concast, 25 MW WHRB based CPP, 30 MW AFBC boiler based CPP, 30 MW CFBC boiler based CPP and Rolling mills are being gradually scaled up. Due to the addition of Service facilities such as Railway siding, Iron ore Crusher and other infrastructure facilities in the second and third phase, Company has achieved substantial cost benefits in material handling and logistics. Project: The Company is implementing a fourth Rolling Mill at the existing plant at Siltara, which is expected to be commissioned by December 2011.

CONTINGENT LIABILITIES (As on 31.03.2011)

a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.1.234 Millions.

b) Bank guarantees issued outstanding at the year end Rs.329.472

c) Letter of credit issued by banks outstanding at the year end Rs.337.883 Millions

d) Disputed excise liabilities Rs.277.278 Millions).

e) Claims against the Company not acknowledged as debts Rs.10.152 Millions

f) Export obligation to be fulfilled against imports made under EPCG Schemes Rs.527.693 Millions. Customs Duty liability which may arise on non-fulfilment of aforesaid export obligations Rs.65.962 Millions

g) Corporate guarantees issued on behalf of subsidiaries and an associate company outstanding at the year end Rs.768.000 Millions

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27100MH2000PLC125893
Name of the company	SKS ISPAT AND POWER LIMITED
Address of the registered office or of the principal place of business in India of the company	501B, Elegant Business Park, Andheri Kurla Road, J. B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India E-mail : corporateoffice@sksispat.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	L and T Finance Limited, L and T House, Ballard Estate, Mumbai – 400001, Maharashtra, India
Nature of instrument creating charge	Loan Agreement and Deed of Hypothecation, executed on 09.12.2011 in favour L and T Finance Limited for Loan of Rs.200.000 Millions
Date of instrument Creating the charge	09.12.2011
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 14% p.a Terms of Repayment 10 Equal monthly installments of Rs. 20.000 Millions each starting from the end of 9th month from the date of disbursement. Margin NIL Extent and Operation of the charge Second Pari-passu charge by way of hypothecation on the Movable Fixed Assets of the Company for repayment of Loan of Rs. 200.000 Millions. Deed of Hypothecation dated 09.12.2011
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Second Pari-passu charge by way of hypothecation of entire movable fixed assets, present and future of the Company as described in Schedule II of Deed of Hypothecation.

Fixed Assets:

• Freehold Land
• Building

- Factory Building

- Non-Factory Building

• Plant and Machinery
• Electrical Installation
• Borewell
• Material Handling Equipments
• Office Equipments
• Computers
• Furniture and Fixtures
• Vehicles (Motor Car)
• Transport Vehicles (Trailers)

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] 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.54.31
UK Pound	1	Rs.87.36
Euro	1	Rs.70.36

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.