MIRA INFORM REPORT

Report Date :

09.02.2012

IDENTIFICATION DETAILS

Name :	GONTERMANN - PEIPERS (INDIA) LIMITED
Registered Office :	Diamond Harbour Road, Post-Pailan, 24 Pags(S), Kolkata – 743 512, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.12.1966
Com. Reg. No.:	101410
Capital Investment / Paid-up Capital :	Rs.152.337 millions
CIN No.: [Company Identification No.]	L27106WB1966PLC101410
Legal Form :	A Public Limited Liability Company. The Company's Shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Iron and Steel Rolls for Rolling Mills.
No. of Employees :	675 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 4300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. There appears huge dip in the profitability of the company in the current year due to increase in the cost of materials, power and fuel. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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/Factory :	Diamond Harbour Road, Post-Pailan, 24 Pags(S), Kolkata – 743 512, West Bengal
Tel. No.:	91-33-24532455 / 56 / 24978183 / 8294 / 8462
Fax No.:	91-33-24978313 / 8547 / 8686
E-Mail :	gpikol@gontermann-peipers.com
Website :	http://www.gontermann-peipers.com

DIRECTORS

As on 31.03.2011

Name :	Mr. L. K. Poddar
Designation :	Managing Director
Name :	Mr. Sushil Ray
Designation :	Director (Marketing and Technical Services)
Name :	Mr. Saumitra Banerjee
Designation :	Director (Operations)
Name :	Mr. Mahesh Trivedi
Designation :	Non-Executive Director
Name :	Prof. Manoj Kumar Mitra
Designation :	Non-Executive Director
Name :	Dr. Shekhar Chaudhuri
Designation :	Non-Executive Director
Name :	Mr. S Balasubramanian
Designation :	Non-Executive Director
Name :	Mr. Vinod Kothari
Designation :	Non-Executive Director
Name :	Mr. B. K. Roy, IFCI Nominee
Designation :	Non-Executive Director
Name :	Mr. S. S. Sawant, EXIM Bank Nominee
Designation :	Non-Executive Director
Name :	Mr. R. K. Jena
Designation :	Non-Executive Director
Name :	Ms. Shristi Mittal
Designation :	Non-Executive Director

KEY EXECUTIVES

Name :	Mr. S Subramanian
Designation :	Company Secretary
Name :	Mr. R. K. Banthia
Designation :	Assistant Company Secretary
Name :	Mr. R. K. Parekh
Designation :	President and Chief Financial Officer
Name :	Mr. Alok Basu
Designation :	Vice President and Technical Services
Name :	Mr. Dwijen Lahiri
Designation :	Vice President (Operations)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholders	No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	263,481	1.89
Bodies Corporate	5,009,496	36.00
Sub Total	5,272,977	37.89
(2) Foreign
Bodies Corporate	2,538,096	18.24
Sub Total	2,538,096	18.24
Total shareholding of Promoter and Promoter Group (A)	7,811,073	56.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	17	-
Financial Institutions / Banks	29,010	0.21
Sub Total	29,027	0.21
(2) Non-Institutions
Bodies Corporate	2,831,774	20.35
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2,255,062	16.21
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	898,370	6.46
Any Others (Specify)	89,694	0.64
Non Resident Indians	89,694	0.64
Sub Total	6,074,900	43.66
Total Public shareholding (B)	6,103,927	43.87
Total (A)+(B)	13,915,000	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)	13,915,000	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel Rolls for Rolling Mills.

Products :

Product Description	ITC Code
Rolls for Rolling Mill	84553000

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity +	Installed Capacity	Actual Production
Iron & Steel base rolls (including high carbon and high chrome centrifugal compound rolls)	MT	N.A	12000	9781
Steel Ingots	MT	N.A	70500	NIL
Forged Rolls	MT	N.A	3300	1389

+ Not applicable in view of the de-licensing policy of the Government.

GENERAL INFORMATION

No. of Employees :

675 (Approximately)

Bankers :

· Allahabad Bank

· UCO Bank

· State Bank of India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
a) Term Loans from Financial Institutions and Banks
Foreign Currency Loans	10.033	20.178
Rupee Term Loans (Secured by a pari- passu first charge on the Company's immovable properties and hypothecation of all the moveable properties ( save and except book debts) both present and future, together with interest and all other monies payable in respect thereof, subject to prior charges created and/or to be created in favour of the Company's bankers on the stocks and book debts for securing borrowings for working capital requirements).	579.383	426.291
B) Under Equipment Finance/Refinance scheme Rupee loan (Secured by an exclusive charge on the assets purchased / to be purchased under the Scheme).	2.480	5.600
C) From Scheduled banks On Cash Credit/Packing Credit Account (Secured against Hypothecation of Raw Materials, Finished Goods, Stock in Process, Stores and Spare Parts, Trade bills, Movables etc. and Guarantee of two Directors of the Company and joint mortgage through second charge on the immoveable properties of the Company).	690.355	561.822
Total	1282.251	1013.891

Banking Relations :	--
Auditors :
Name :	V Malik and Associates Chartered Accountants
Enterprises over which Key Management Personnel / Shareholders / Relatives have Significant influence * :	· Ispat Industries Limited · Global Steel Holdings Limited · Balasore Alloys Limited · Delta Steel Company Plc · Global Steel Phillippines Plc · Navoday Management Services Limited (Formerly Ispat Finance Limited) · Navoday Consultants Limited (Formerly Mudra Ispat Limited) · Goldline Tracom (Private) Limited · Navdisha Real Estate Private Limited · Navoday Niketan Private Limited · Navoday Highrise Private Limited

* The parties stated are related parties in the broader sense of the item and are included for making the financial statements more transparent.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions
5000000	Preference Shares	Rs.10/- each	Rs.50.000 millions
	Total		Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13915000	Equity Shares Note : Of the above, 62,533 Equity shares have been allotted as fully paid up shares pursuant to a contract without payment being received in cash.	Rs.10/- each	Rs.139.150 millions
1318700	6% Cumulative Optionally Convertible Redeemable Preference Shares (COCRPS) fully paid up (Redeemable at par in two equal annual instalments commencing from 2013)	Rs.10/- each	Rs.13.187 millions
	Total		Rs.152.337 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		152.337	152.337	152.337
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		934.594	950.184	930.699
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1086.931	1102.521	1083.036
LOAN FUNDS
1] Secured Loans		1282.251	1013.891	726.663
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1282.251	1013.891	726.663
DEFERRED TAX LIABILITIES		64.986	58.285	57.402
TOTAL		2434.168	2174.697	1867.101
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1263.755	1000.910	1070.410
Capital work-in-progress		294.544	374.523	110.797
INVESTMENT		11.108	11.108	11.108
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	486.242	356.870	350.497
	Sundry Debtors	614.204	490.908	392.278
	Cash & Bank Balances	45.990	41.930	45.332
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	290.563	286.008	190.322
Total Current Assets		1436.999	1175.716	978.429
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	297.078	200.519	128.263
	Other Current Liabilities	228.510	153.472	139.658
	Provisions	46.650	33.569	35.722
Total Current Liabilities		572.238	387.560	303.643
Net Current Assets		864.761	788.156	674.786
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2434.168	2174.697	1867.101

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales / Income from Operations	1555.285	1351.807	1510.966
		Other Income	0.267	22.116	17.639
		TOTAL (A)	1555.552	1373.923	1528.605
Less	EXPENSES
		(Increase) / Decrease in Stocks	(105.873)	9.369	6.166
		Raw Materials Consumed	686.642	520.676	656.813
		Stores and Spare Parts Consumed	141.437	108.658	121.275
		Power and Fuel	227.950	152.717	150.491
		Payments to and Provisions for Employees	251.363	202.574	210.350
		Other Expenses	176.004	138.550	189.513
		Prior period Items (Net)	(0.172)	0.356	0.441
		TOTAL (B)	1377.351	1132.900	1335.049
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		178.201	241.023	193.556
Less	INTEREST (NET) AND FINANCE CHARGES (D)		90.447	88.835	86.609
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		87.754	152.188	106.947
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.068	71.007	63.700
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		14.686	81.181	43.247
Less	TAX (H)		5.637	29.865	17.593
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		9.049	51.316	25.654
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		450.643	400.253	375.525
Less	APPROPRIATIONS
		Proposed Dividend on Preference Shares	0.000	0.791	0.791
		Corporate Tax on Dividends	0.000	0.135	0.135
	BALANCE CARRIED TO THE B/S		459.692	450.643	400.253
	EARNINGS IN FOREIGN CURRENCY		317.112	357.944	488.681
	IMPORTS
		Raw Materials	110.646	68.083	118.050
		Components and Spares	22.028	6.633	7.352
		Capital Goods	2.813	199.208	5.500
	TOTAL IMPORTS		135.487	273.924	130.902
	Earnings Per Share (Rs.) Basic Diluted		0.58 0.59	3.62 3.37	1.78 1.68

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	328.810	302.010
Total Expenditure	315.560	290.260
PBIDT (Excl OI)	13.250	11.750
Other Income	0.000	37.010
Operating Profit	13.250	48.760
Interest	47.380	47.330
Exceptional Items	(0.070)	(22.070)
PBDT	(34.200)	(20.640)
Depreciation	24.500	23.570
Profit Before Tax	(58.700)	(44.210)
Tax	(19.580)	(15.170)
Provisions and contingencies	0.000	0.000
Profit After Tax	(39.120)	(29.040)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(39.120)	(29.040)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.58	3.73	1.68
Net Profit Margin (PBT/Sales)	(%)	0.94	6.01	2.86
Return on Total Assets (PBT/Total Assets}	(%)	0.54	3.73	2.11
Return on Investment (ROI) (PBT/Networth)		0.01	0.07	0.04
Debt Equity Ratio (Total Liability/Networth)		1.71	1.27	0.95
Current Ratio (Current Asset/Current Liability)		2.51	3.03	3.22

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL PERFORMANCE

During the year, the net revenue from Sales was Rs.1555.285 millions representing an increase of 15 % from Rs.1351.807 millions in the previous year. Operating Profit before interest and depreciation decreased by 26 % to Rs.178.029 millions as against Rs.241.379 millions during the previous year. Net profit after providing for interest, depreciation and tax amounted to Rs.9.049 millions as against Rs.51.316 millions during the previous year. The decrease in profitability was mainly due to increase in the cost of raw materials, power and fuel and other consumables.

OPERATIONS

CAST ROLL DIVISION

Production during the current year increased by 30% to 9781 MT as against 7522 MT during 2009-10. Cast Roll sales increased by 24% from 7851 MT in the last year to 9701 MT in 2010-11. Consequently the total revenue from the Cast roll division increased by 27 % at Rs.1321.790 millions compared to Rs.1042.465 millions in the previous year.

FORGE ROLL DIVISION

Production during the current year was 1389 MT as against 1372 MT during the previous year. Forge Roll sales decreased by 10 % from 1448 MT in the last year to 1300 MT in 2010-11. Consequently the total revenue from the Forge roll division decreased by 16 % to Rs.304.649 millions compared to Rs.361.610 millions in the previous year.

EXPORTS

During the year the Company exported 2099 MT of Cast Rolls as compared to 1526 MT during the previous year. The Company is exploring new markets for Cast Rolls in Venezuela, Colombia, Brazil, Canada, Russia, Ukraine and other Latin American countries while strengthening its presence in the existing markets. The initial foray into the untapped European and African markets of Spain, Russia and Kenya respectively have been fruitful.

The Company exported 289 MT of Forged Steel Roll as against 300 MT during the previous year. The Company has made foray into new markets like Malaysia, Indonesia, Africa and Ethiopia, etc and is aggressively pursuing requirements in Thailand, Brazil, Egypt, Kenya and Vietnam.

FUTURE OUTLOOK

Rolls being integral to steel production, its demand is directly linked to the growth of steel industry.

The Indian steel industry has been performing better than its global peers and even the new projects are being implemented with minor delays. With many Greenfield projects in the pipeline the demand for steel remains bullish.

India’s steel consumption rose 8 per cent in the year ended March 2011, over the same period a year ago on account of improved demand from sectors like automobile, infrastructure and housing. The country’s steel consumption increased to 56.3 million tonnes in the 12 months to March 2011 from 52.3 million tonnes in the previous year.

However, in view of comparative decrease in demand in the western world and better prospect in the Asian Market specially India and China, all the giant roll manufacturers are focusing at Indian market and hence the competition in roll industry has increased. This has thrown a big challenge to Indian roll manufacturers.

The Company expects to live up to the exacting demands of customers and to further improve roll performance. Search is on for better quality of inputs, which would stand up to these requirements.

EXPANSION PROJECT

The expansion-cum-modernisation project undertaken by the Company is in the verge of completion. The Company expects to derive the full benefit of the expansion during the current fiscal.

FUTURE PLAN OF ACTION

· Development of cast and forge Back Up Roll through a new route of production.

· Development of a significantly improved microstructure re-engineered grade of Hi-Cr Roll.

· Establish the process of centrifugally cast Plate Mill rolls.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW

The global recovery that started in the second half of 2009-10 continued in most markets in 2010-11. However, the recovery was not uniform as the economic growth in the advanced economies remained modest at around 3% in 2010 after a decline of 3.4% in 2009, emerging and developing economies recorded robust growth in excess of 7% during the year led primarily by China and India.

The global economy is transitioning from the bounce-back phase of the recovery towards a period of slower but more sustainable growth. Growth in most developing countries is increasingly running into capacity constraints, while in high income and developing Europe and Central Asia growth is hampered by the concentrated nature of slack and ongoing restructuring.

According to the International Monetary Fund (IMF), world real GDP growth for 2011 is forecast at 4.4%, representing a modest slowdown from 2010 levels. Real GDP in the advanced economies is expected to grow by 2.5% while that in the emerging and developing economies is forecast to grow by 6.5%. The sustainability of the global recovery depends on how the developed markets manage their public debt, boost private economic activity and generate employment.

The Indian Economy continued to be on a strong growth trajectory recording a real GDP growth of 8.6% for the fiscal year 2010-11 as compared to a 8 % growth for 2009-10 fiscal. India's GDP is projected to grow at a brisk pace of 8.8 percent in 2011-12. According to the Centre for Monitoring Indian Economy (CMIE), the domestic environment is conducive for growth and private final consumption expenditure is projected to grow by a healthy 7.5 percent and gross fixed capital formation by 14.6 percent respectively.

Steel industry has a major role to play in the economic growth of India. With new global acquisitions by Indian steel giants, setting up of new state-of-the-art steel mills, modernisation of existing plants, improving energy efficiency and backward integration into global raw material sources, India is now on the centre of the global steel map. Consumption of steel in the construction sector, industrial applications, and transport sector has been on the rise and special steel usage in engineering industries such as power generation, petrochemicals and fertiliser industry is also growing.

According to World Steel Association (WSA), India has recorded a growth of over 8.6 per cent, producing 6.35 million tonnes of steel in March 2011 as against 5.85 million tonnes in the corresponding month in 2010.

The consumption of steel domestically was recorded at 44.28 million tonnes. The consumption of steel in the country has shown an increase of 10.3 per cent during April 2010 to January 2011 as compared to the same period of previous year.

OPERATIONAL PERFORMANCE

CAST ROLLS

Production during the current year increased by 30% to 9781 MT as against 7522 MT during 2009-10. Cast Roll sales increased by 24% from 7851 MT in the last year to 9701 MT in 2010-11. Consequently the total revenue from the Cast roll division increased by 27 % at Rs.1321.790 millions compared to Rs.1042.465 millions in the previous year.

FORGED ROLLS

Production during the current year was 1389 MT as against 1372 MT during the previous year. Forge Roll sales decreased by 10 % from 1448 MT in the last year to 1300 MT in 2010-11. Consequently the total revenue from the Forge roll division decreased by 16 % at Rs.304.649 millions compared to Rs.361.610 millions in the previous year.

FUTURE OUTLOOK

As reported by the 'World Economic Outlook' (WEO) issued by the International Monetary Fund in April 2011, the world economy is expected to grow at 4.5% in the years 2011 as well as 2012. The advanced economies are projected to grow at 2.5% while the emerging and developing economies will be growing at a higher level of 6.5%.

World Steel Association has projected the World Steel Demand to grow by 6% to 1360 million tonnes by 2011. China is expected to continue its leadership position with a share of 44%. The demand in Advanced and Emerging economies are slated to grow 5.3% and 6.3% respectively.

India is expected to show strong growth in steel use in the coming years due to its strong domestic economy, massive infrastructure needs and expansion of industrial production. In 2011, India's steel use is forecast to grow by 13.3% to reach 68.7 million tonnes. In 2012, the growth rate is forecast to accelerate further to 14.3%.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

Particulars	As on 31.03.2011 Rs. in millions
(i) Outstanding Bank Guarantees	100.993
(ii) Bills discounted with banks	24.284
(iii) Central Excise claims against show cause notices being disputed by the company	24.518
(iv) Service Tax claims against show cause notices being disputed by the company	1.394
(v) Sales Tax demands for earlier years being disputed by the Company	24.407
(vi) Maximum demand charges payable to West Bengal State Electricity Board to the extent and up to the period disputed by the company, against which a case is pending with Hon'ble Calcutta High Court.	20.888
(vii) Customs Duty demand against import of a machine, being contested by the Company	0.150
(viii) Capital goods imported under E.P.C.G. scheme without payment of customs duty against future export obligations.	46.896

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Furniture, Fixture and Office Equipment

· Vehicles

Intangible Assets

· Computer Software

· Technical Knowhow

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH SEPTEMBER 2011

(Rs. in millions)

Particulars	Quarter Ended 30.09.2011 Unaudited	Half Year Ended 30.09.2011 Unaudited
1. Gross Sales	322.027	680.834
Less: Excise Duty	23.309	56.681
a) Net Sales / Income from Operations	298.718	624.153
b) Other Operating Income	3.289	3.493
Total Operating Income (a+b)	302.007	627.646
2. Expenditure
(a) (Increase)/decrease in Stock in Trade and work in progress	(15.586)	(37.551)
(b) Consumption of Raw Materials	115.774	264.959
(c) Employee cost	65.585	131.773
(d) Depreciation	23.556	48.060
(e) Other Expenditure
(I) Power and Fuel	51.223	105.759
(II) Other expenses	73.290	141.115
(f) Total	313.842	654.115
Total
3. Profit From Operations before other Income, Interest and Exceptional Items (1-2)	(11.835)	(26.469)
4. Other Income	37.012	37.012
5. Profit from Operations before Interest and Exceptional items (3+4)	25.177	10.543
6. Interest (net) and financial charges	47.328	94.705
7. Profit after interest but before Exceptional items (5-6)	(22.151)	(84.162)
8. Exceptional items
Prior Period Items (Net)	0.446	0.517
Exchange (Gain)/Loss	21.616	18.236
9. Profit from Ordinary Activities before tax (7-8)	(44.213)	(102.915)
10. Tax Expenses
- Current Year	--	--
- Tax related to earlier year	0.053	0.053
- Deferred Tax Liability	(15.229)	(34.809)
11. Net Profit from Ordinary Activities after tax (9-10)	(29.037)	(68.159)
12. Extraordinary items (net of tax)	--	--
13. Net Profit for the period (11-12)	(29.037)	(68.159)
14. Paid Up Equity Share Capital (Face Value Rs.10/- each)	139.150	139.150
15. Reserves excluding revaluation reserve as per Balance Sheet of previous accounting year
16. Earning per share (EPS) for the period, for the year to date and for the previous period (Not annualized)
- Basic-in Rs.	(2.10)	(4.93)
- Diluted – in Rs.	(1.90)	(4.47)
17. Aggregate of Public Shareholding
- Number of Shares	6103927	6103927
- Percentage of Shareholding (%)	43.87%	43.87%
18. Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	NIL	NIL
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	0.00%	0.00%
- Percentage of shares(as a % of the total share capital of the company)	0.00%	0.00%
b) Non-encumbered
- Number of Shares	7811073	7811073
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%
- Percentage of Share (as a % of the total share capital of the company)	56.13%	56.13%

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

Particulars	Quarter Ended 30.09.2011 Unaudited	Half Year Ended 30.09.2011 Unaudited
1. Segment Revenue
a) Cast division	280.587	594.070
b) Forge division	41.440	86.764
Sales /Income from operations	322.027	680.834
2. Segment Results
Profit/(Loss) before Tax and interest and Finance charges from each segment
a) Cast division	4.774	(10.058)
b) Forge division	(1.659)	1.847
	3.116	(8.211)
Less - Interest & Finance charges	47.328	94.705
Profit/ (Loss) before Tax	(44.213)	(102.915)
Less - Provision for Taxation	0.053	0.053
Less - Provision for deferred Tax	(15.229)	(34.809)
Profit/ (Loss) after Tax	(29.037)	(68.159)
3. Capital Employed
a) Cast division	2053.843	2053.843
b) Forge division	306.878	306.878
Total	2360.721	2360.721

NOTES

· The above financial results were reviewed by the Audit Committee and approved by the Board of Directors in their adjourned meeting held on 14^th November, 2011.

· The Statutory Auditors have carried out a ‘Limited Review’ of the financial results for the quarter ended 30th September, 2011.

· Information on investor complaints (numbers) : Pending at the beginning of the quarter : Nil; Received during the quarter : 2 ; Resolved/replied during the quarter : 2 ; Unresolved at the end of the quarter : Nil.

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in millions)

Particulars	As at 30.09.2011 Unaudited
Shareholders' Funds:
a. Share Capital	152.337
b. Reserves and surplus	856.201
Loan Funds	1322.006
Deferred Tax Liability	30.177
TOTAL	2360.721
Fixed Assets	1527.163
Investments	11.108
Current Assets, Loans and Advances
a. Inventories	485.856
b. Debtors	524.797
c. Cash and Bank Balances	42.908
d. Loans and Advances	313.517
Less : Current Liabilities and Provisions
a. Current Liabilities	491.882
b. Provisions	52.745
TOTAL	2360.721

· Other income includes Rs.37.012 millions gain on raw material hedging.

· Due to unusual depreciation in the value of rupee against foreign currencies over last three months, the net unrealised loss on restatement of foreign currency monetary items at the end of the quarter has been considered as exceptional in nature by the company.

WEB DETAILS

BUSINESS DESCRIPTION

Subject is an India-based company. The Company is engaged in the manufacturing of iron and steel rolls for rolling mills. It operates in two segments: Cast Roll Division and Forge Roll Division. As of March 31, 2011, it had an installed capacity of 12,000 iron and steel base rolls; 70,500 steel ingots, and 3,300 forged rolls. During the fiscal year ended March 31, 2011 (fiscal 2011), it exported 2099 million tons of cast rolls. During the fiscal year ended March 31, 2011 (fiscal 2011), it exported 289 million tons of forged steel rolls. During fiscal 2011, the Company produced 9,781 million tons of cast rolls. During fiscal 2011, the Company produced 1,389 million tons of forge rolls. Its cast roll products include Hi-Cr Iron Roll, Anti Peeling Hi-Cr Iron Roll, Indefinite Chilled Double Poured Roll, Cast Steel Roll, Cast Steel Back-up Roll, Spheroidal Graphite Iron Roll, Hi-Cr Steel Roll and Cast High Speed Steel Roll. For the nine months ended 31 December 2010, Subject's revenues increased 14% to RS1.16B. Net loss totaled RS4.9M, vs. a profit of RS42.8M. Revenues reflect an increase in income from Cast division. Net loss reflects by increase in consumption of raw materials, higher employees cost, a rise in provision for depreciation expense an increase in power and fuel expense and higher other expenses.

BOARD OF DIRECTORS

Mr. Pramod Mittal - Non-Executive Chairman

Mr. Pramod Mittal is Non-Executive Chairman of the Board of subject. His qualifications in B.com, DBM. Experience in specific functional areas - Strategic Planning, managing and implementation of projects and overseeing business operations. List of other Companies in which Directorship held - Chairman in Ispat Industries Limited, Balasore Alloys Limited, Global Steel Holdings Limited, Global Steel Philippines (SPVAMC) Inc., Global Infrastructure Nigeria Limited, Delta Steel Company Limited, Drum International Inc GSHL-Brazil Mineracao SA., Ispat Energy Limited President of Supervisory Board, Global ispat Koksna Industrija Doo, Director Finmetals Holding AD Global Management and Technical Services Limited, Global Oil Resources (Georgia) Limited, Gbbai Resources Europe Limited.

Dr. Shekhar Chaudhuri - Non-Executive Independent Director

Dr. Shekhar Chaudhuri is Non-Executive Independent Director of subject. His Qualifications inlcudes B. Tech (Hons), IIT Kharagpur, FoIlow of IIM Ahmedabad (Phd. Equivalent). His Directorship inlcudes Gujarat Industries Power Company Limited, West Bengal Electronics industry Development Corporation Limited.

Education

PHD, Indian Institute of Management, Ahmedabad

ME Mechanical Engineering, Indian Institute of Technology, Kharagpur

Mr. Vinod Kumar Kothari - Non-Executive Independent Director

Mr. Vinod Kumar Kothari is Non-Executive Independent Director of subject. His qualifications is B.Com, FCA, FCS. Experience in specific functional areas - Corporate Laws, Securitisation, Credit Derivatives and Leasing Finance. List of other Companies in which Directorship held - Director in Rupa and Company Limited, Greenply Industries Limited, Vinod Kothari Consultants Private Limited. Wise Men’s Consultancy Company Private Limited, Academy of Financial Services Private Limited, Investec Capital Private Limited-Sri Lanka Association of Leasing and Financial Services. He is member of Audit Committee of Rupa and Company Limited -Chairman and Greeny Industries Limited - member.

Mr. Mahesh Trivedi - Non-Executive Independent Director

Mr. Mahesh Trivedi is Non-Executive Independent Director of subject. Mr. Mahesh Trivedi Qualifications inlcudes B.Com., MA. (Eng). His Directorship inlcudes Balasore Alloys Limited.

PRESS RELEASES

GONTERMANN PEIPERS INDIA LIMITED ANNOUNCES NO DIVIDEND

Jul 26, 2011

Gontermann Peipers India Limited announced that the Board of Directors of the Company at its meeting held on May 30, 2011, decided not to recommend any dividend (Equity / Preference) for the financial year ended March 31, 2011.

BOARD MEETING RE-SCHEDULED TO MAY 30, 2011

India, May 20 -- With reference to earlier announcement dated May 16, 2011, regarding Board to consider Dividend on May 26, 2011, Gontermann Peipers India Limited has now informed BSE that due to unavoidable circumstances, the meeting of the Board of Directors of the Company originally scheduled to be held on May 26, 2011 has been rescheduled to May 30, 2011, inter-alia, to consider and approve the Audited Financial Results of the Company for the year ended March 31, 2011, and to consider recommendation of a dividend, if any, for the said financial year.

MITTAL BROS LOOKING TO EXIT GONTERMANN

28 December 2011

Barely a year after they sold Ispat Industries to JSW Steel, the Mittal brothers - Vinod and Pramod - are on the lookout for a buyer for Gontermann-Peipers (India) Limited, which makes rollers for steel mills, among other products.

The brothers, younger siblings of steel tycoon Lakshmi Narayan Mittal, had even approached Sajjan Jindal with a proposal to sell promoter stake in the company, but the talks didn't go far, according to sources who refused to be named.

The Mittals own 56.13% in Gontermann. Institutions, including banks and mutual funds, have very little holding in it.

Besides Gontermann, the brothers currently control Balasore Alloys Limited, Ispat Metallics Limited and Ispat Profiles Limited in India.

Their holding outfit, Isle of Man-based Global Steel Holdings, also controls steel plants in Bulgaria and Nigeria and manages a steel facility in Zimbabwe.

The Mittals' desire to dispose of Gontermann and Jindal's reported refusal is understandable, looking at the company's current health.

When the times were good for steel producers, its key clients, Gontermann was posting handsome profits and revenue growth. But its health and performance have gone downhill since, coinciding with the economic slowdown and a reversal in the fortunes of the steel makers.

The company posted losses in the last two quarters, reporting a loss of Rs.29.000 millions in the quarter ended September as against a net profit of Rs.22.500 millions in the year-ago period, as sales dropped 35% to Rs.298.700 millions.

To add to its woes, Gontermann's financial strength has deteriorated with a rating agency expressing concern over poor liquidity position due to mounting receivables.

Investors, on the other hand, have been peeved at developments including a plan to make an unrelated diversification into setting up a commodity bourse, announced a year back but not pursued in right earnest with the Forward Market Commission, the regulator for such exchanges.

In terms of fundamentals, however, Gontermann has a strong presence in the industry, being the largest steel roll manufacturer, with a presence in both cast and forged rolls, key components for hot-rolled and cold-rolled steel mills.

The Mittals have also invested in raising capacity to about 21,000 tonne, from 15,300 tonne. The additional capacity was commissioned at Gontermann's plant at Pailan in West Bengal recently.

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 :