MIRA INFORM REPORT

Report Date :

13.02.2012

IDENTIFICATION DETAILS

Name :	INDIAN TECHNOMAC COMPANY LIMITED (w.e.f. 31.03.2010)
Formerly Known as :	INDIAN TECHNOMAC CO. LIMITED
Registered Office :	Village Jagatpur, P O Misserwala, Paonta Sahib – 173021, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.09.1987
Com. Reg. No.:	06-007699
Capital Investment / Paid-up Capital :	Rs.252.937 Millions
CIN No.: [Company Identification No.]	U29214HP1987PLC007699
TAN No.: [Tax Deduction & Collection Account No.]	PTLA12997F
PAN No.: [Permanent Account No.]	AABCA3201H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of Ferro Alloys.
No. of Employees :	Not Available

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 17500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. The company has improved its performance in the year 2010-11. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

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

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

LOCATIONS

Registered Office :	Village Jagatpur, P O Misserwala, Paonta Sahib – 173021, Himachal Pradesh
Tel. No.:	91-1704-255141
Fax No.:	91-1704-255141
E-Mail :	corporataffairs@itcol.co.in accounts@itcol.co.in
Website :	www.indiatechnomac.com
Corporate Office :	1107, Vikrant Tower, 4, Rajendra Place, New Delhi – 110008, India
Tel. No.:	91-11-45704570
Fax No.:	91-11-45704580
E-Mail :	ferroalloys@itcol.co.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Rakesh Kumar Sharma

Designation :

Managing director

Address :

4512, Sector – B, 5-6, Vasant Kunj, New Delhi – 110070, India

Date of Birth/Age :

01.07.1963

Date of Appointment :

10.01.2008

DIN No.:

01911976

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74899DL1995PTC068211	Uphar International Private Limited	Additional director	26/11/2007	26/11/2007	27/03/2009	Active	NO
U29214HP1987PLC007699	Indian Technomac Company Limited	Managing director	1/04/2011	10/01/2008	-	Active	NO
U24233DL2009PTC191596	Indian Technoinvestment Private Limited	Director	25/06/2009	25/06/2009	-	Active	NO
U27205DL2009PLC192248	Indian Technometal Company Limited	Director	15/07/2009	15/07/2009	-	Active	NO
U27205DL2009PTC192245	Indian Technoalloys Company Private Limited	Director	15/07/2009	15/07/2009	-	Active	NO
U14219OR2007PTC009380	BMT Chrome Alloys Private Limited	Director	7/06/2010	7/06/2010	-	Active	NO
U14290DL2010PLC205626	Indian Technominerals Company Limited	Director	9/07/2010	9/07/2010	-	Active	NO
U13209ML2010PLC008423	Itcol Minerals Limited	Director	23/07/2010	23/07/2010	-	Active	NO
U13209ML2010PLC008427	ITCOL Hydrocarbon Limited	Director	18/08/2010	18/08/2010	-	Active	NO
U27200DL2010PLC207341	Indian Technothermic Company Limited	Director	20/08/2010	20/08/2010	-	Active	NO
U51909DL2010PLC211708	Indian Technotrade Company Limited	Director	23/12/2010	23/12/2010	-	Active	NO
U23101OR2010PTC012850	ITCOL Techno Industries Private Limited	Director	24/12/2010	24/12/2010	31/03/2011	Active	NO
U24112UP1987PLC008776	Indian Technolime Company Limited	Director	27/09/2011	20/01/2011	-	Active	NO
U13200ML2011PTC008472	Debdoot Minerals Private Limited	Director	28/04/2011	28/04/2011	-	Active	NO
U13200ML2011PTC008471	Treasury Minerals Private Limited	Director	28/04/2011	28/04/2011	-	Active	NO
U10100DL2011PTC223200	Thunder Coal and Mines Private Limited	Director	3/08/2011	3/08/2011	-	Active	NO
U10100DL2011PTC223897	Indian Technorem Company Private Limited	Director	18/08/2011	18/08/2011	-	Active	NO
U73100DL2011PTC224671	Indian Techno Research Private Limited	Director	7/09/2011	7/09/2011	-	Active	NO
U65929DL2011PTC226658	RKS Group Holding Private Limited	Director	21/10/2011	21/10/2011	-	Active	NO
U13100ML2011PTC008489	Treasury Iron Mines Private Limited	Director	14/11/2011	14/11/2011	-	Active	NO
U27205DL2011PLC228323	ITCOL Metals Limited	Director	5/12/2011	5/12/2011	-	Active	NO
U27205DL2011PLC228310	Itcol Alloys Company Limited	Director	5/12/2011	5/12/2011	-	Active	NO
U24100DL2011PLC228361	Indian Technocam Company Limited	Director	7/12/2011	7/12/2011	-	Active	NO
U61200DL2012PLC230137	ITCOL Shipping and Logistic Limited	Director	17/01/2012	17/01/2012	-	Active	NO

Name :

Mr. Vinay Sharma

Designation :

Director

Address :

Vpo Pir Saluhi, Tehsil Dehra, District Kangra – 176001, Himachal Pradesh, India

Date of Birth/Age :

04.03.1979

Date of Appointment :

10.01.2008

DIN No.:

02031019

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29214HP1987PLC007699	Indian Technomac Company Limited	Director	1/08/2010	10/01/2008	-	Active	NO
U14219OR2007PTC009380	BMT Chrome Alloys Private Limited	Director	12/06/2010	12/06/2010	-	Active	NO
U24233DL2009PTC191596	Indian Technoinvestment Private Limited	Director	20/08/2010	21/06/2010	-	Active	NO
U27205DL2009PTC192245	Indian Technoalloys Company Private Limited	Director	20/08/2010	21/06/2010	-	Active	NO
U27205DL2009PLC192248	Indian Technometal Company Limited	Whole-time director	1/04/2011	21/06/2010	-	Active	NO
U24112UP1987PLC008776	Indian Technolime Company Limited	Director	27/09/2011	1/01/2011	-	Active	NO
U65929DL2011PTC226658	RKS Group Holding Private Limited	Director	21/10/2011	21/10/2011	-	Active	NO
U13100ML2011PTC008489	Treasury Iron Mines Private Limited	Director	14/11/2011	14/11/2011	-	Active	NO
U27205DL2011PLC228323	ITCOL Metals Limited	Director	5/12/2011	5/12/2011	-	Active	NO
U27205DL2011PLC228310	ITCOL Alloys Company Limited	Director	5/12/2011	5/12/2011	-	Active	NO
U24100DL2011PLC228361	Indian Technocam Company Limited	Director	7/12/2011	7/12/2011	-	Active	NO
U61200DL2012PLC230137	ITCOL Shipping and Logistic Limited	Director	17/01/2012	17/01/2012	-	Active	NO

Name :

Mr. Rabindra Nath Sarangi

Designation :

Director

Address :

Friends Colony, BK Road, Boxi Bazar, Magala Bagh Cuttak – 753001, Orissa, India

Date of Birth/Age :

26.11.1948

Date of Appointment :

09.04.2010

DIN No.:

02871532

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29214HP1987PLC007699	Indian Technomac Company Limited	Director	24/09/2010	9/04/2010	2/11/2011	Active	NO
U14219OR2007PTC009380	BMT Chrome Alloys Private Limited	Director	12/06/2010	12/06/2010	2/11/2011	Active	NO
U23101OR2010PTC012850	ITCOL Techno Industries Private Limited	Director	24/12/2010	24/12/2010	2/11/2011	Active	NO

Name :

Mr. Ranganathan Srinivasan

Designation :

Director

Address :

A/IV/32, N.M.L Quaters, Agrico Area, Jamshedpur East Singhbhum – 831007, Bihar, India

Date of Birth/Age :

10.10.1958

Date of Appointment :

21.06.2010

DIN No.:

03097684

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29214HP1987PLC007699	Indian Technomac Company Limited	Director	24/09/2010	21/06/2010	-	Active	NO

Name :

Mr. Satya Narayan Nandi

Designation :

Director

Address :

Flat – 256, Dakshinayan, Plot – 19, Sector – 4, Dwaraka, New Delhi – 110075, India

Date of Birth/Age :

09.03.1945

Date of Appointment :

04.06.2010

DIN No.:

03030154

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29214HP1987PLC007699	Indian Technomac Company Limited	Director	24/09/2010	4/06/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Raghvendra Kumar Verma
Designation :	Secretary
Address :	4/4, Indira Vikas Colony, New Delhi – 110009, India
Date of Birth/Age :	03.12.1974
Date of Appointment :	24.03.2011
PAN No.:	AEFPV8978M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
R.K Sharma	10120500
Vinay Sharma	100
Gurupath Merchandise Limited	2599900
Thunder Traders Limited	2587255
Divya Dealers Limited	1281542
Dibya Jyoti Trade and Commerce Limited	1395980
Salt Lake Vyapar Limited	1443888
Sudhanil Vanijya Limited	2294013
Mrinalini Vnaimay Private Limited	457254
Debdoot Vinimay Private Limited	316176
Prominent Heights Private Limited	288430
SK Dealcom Private Limited	276470
Transit Vinimay Private Limited	269803
Hooghly Dealers Private Limited	200979
Mainak Vincom Private Limited	301175
Blackberry Tradelink Private Limited	392352
Prefer Vyapaar Private Limited	244117
Victor Tracom Private Limited	301862
Sumeru Vincom Private Limited	242450
Divya Jewellers Private Limited	279411
Total	25293657

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	59.99
Directors or relatives of Directors	40.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Ferro Alloys.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Ferro Alloys	7202

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit
Licensed Capacity	MT	117600.000
Installed Capacity	MT	*117600.000
Actual Production	MT	**67500.033

*It Includes Additional Capacity of 54300.000 MT put to use as on 31.03.2011

**Production includes 397.397 MT of Semi Finished Goods which have been converted into Finished Goods during the year.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab and Sind Bank, Karol Bagh, New Delhi – 110005, India

· Central Bank of India, MID Corporate Finance Branch, GF (Right Wing), Link House, 3 , Bahadur Shah Zafar Marg, New Delhi – 110002, India

· State Bank of India, Sector – 7, Madhya Marg, Chandigarh, India

· Indian Overseas Bank

· State Bank of Hyderabad

· Allahabad Bank

· Andhra Bank

· Union 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	1312.790	787.715
Foreign currency loans	849.990	0.000
Working capital loans	1302.789	434.529
Loans taken for vehicles	22.891	10.236
Total	3488.460	1232.480

Banking Relations :	--
Auditors :
Name :	SNRS and Associates Chartered Accountants
Address :	413, Pratap Bhawan, 5, Bahadur Shah Zafar Marg, New Delhi – 110002, India
PAN.:	AAXFS1427Q
Enterprises owned or significantly influenced by the Key Managerial Person or their relatives :	· Indian Techno Metal Company CIN No.: U27205DL2009PLC192248 · Indian Lime Industrial Limited CIN No.: U24112UP1987PLC008776
	·
Related Parties :	Thunder Traders Limited CIN No.: U51109WB1996PLC077422

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
25293657	Equity Shares	Rs.10/- each	Rs.252.937 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		252.937	134.539	52.865
2] Share Application Money		0.000	155.500	93.700
3] Reserves & Surplus		4112.957	1271.195	195.453
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4365.894	1561.234	342.018
LOAN FUNDS
1] Secured Loans		3488.460	1232.480	279.813
2] Unsecured Loans		0.000	0.000	16.000
TOTAL BORROWING		3488.460	1232.480	295.813
DEFERRED TAX LIABILITIES		105.380	45.783	5.580
TOTAL		7959.734	2839.497	643.411
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3431.463	2082.495	307.283
Capital work-in-progress		357.019	5.968	115.853
Expenditure pending allocation		9.807	0.000	0.000
INVESTMENT		480.029	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2383.807	654.483	78.611
	Sundry Debtors	2447.279	504.765	122.379
	Cash & Bank Balances	385.324	54.387	10.904
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	992.211	237.542	88.962
Total Current Assets		6208.621	1451.177	300.856
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	104.742	371.093	69.740
	Other Current Liabilities	2227.372	297.716	8.691
	Provisions	196.543	33.295	2.408
Total Current Liabilities		2528.657	702.104	80.839
Net Current Assets		3679.964	749.073	220.017
MISCELLANEOUS EXPENSES		1.452	1.961	0.258
TOTAL		7959.734	2839.497	643.411

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	17593.247	5947.417	368.467
		Other Income	27.801	3.294	0.148
		TOTAL (A)	17621.048	5950.711	368.615
Less	EXPENSES
		Consumption materials changes inventories	15440.822	5474.206
		Manufacturing service costs	315.460	32.427	346.264
		Employee related expenses	109.628	43.910
		Administrative selling other expenses	263.548	77.122
		Restructuring charges	0.642	0.508
		TOTAL (B)	16130.100	5628.173	346.264
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1490.948	322.538	22.351
Less	FINANCIAL EXPENSES (D)		341.261	76.528	5.563
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1149.687	246.010	16.788
Less/ Add	DEPRECIATION/ AMORTISATION (F)		222.684	53.220	3.825
	PROFIT BEFORE TAX (E-F) (G)		927.003	192.790	12.963
Less	TAX (H)		255.137	73.079	7.393
	PROFIT AFTER TAX (G-H) (I)		671.866	119.711	5.570
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		125.304	5.593	0.023
	BALANCE CARRIED TO THE B/S		797.170	125.304	5.593
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	2208.506	56.263	NA
		Others	17.270	1.399	NA
	TOTAL EARNINGS		2225.776	57.662	NA
	IMPORTS
		Raw Materials	2125.892	68.037	NA
		Capital Goods	14.313	10.394	NA
	TOTAL IMPORTS		2140.205	78.431	NA
	Earnings Per Share (Rs.)		38.37	16.73	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.81	2.01	1.51
Net Profit Margin (PBT/Sales)	(%)	5.27	3.24	3.52
Return on Total Assets (PBT/Total Assets}	(%)	9.62	5.46	2.13
Return on Investment (ROI) (PBT/Networth)		0.21	0.12	0.04
Debt Equity Ratio (Total Liability/Networth)		1.38	1.24	1.10
Current Ratio (Current Asset/Current Liability)		2.46	2.07	3.72

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the year, the Company’s income was Rs.18037.681 Millions against Rs.5965.497 Millions in the previous year. However, due to increase in production and other activities of the Company expenses increased to Rs.16887.994 Millions for the period. As a result of continued effort and focus on enhancing operating efficiency across the business, the company posted net profit after tax of Rs.671.866 Millions.

PROSPECTS

During the Financial Year 2009-10, the Bulk Ferro Alloys Industry was passing through critical times due to the slow down in the demand, but the products produced by their company i.e Minor Metals and Noble Ferro Alloys were very lessly affected. Further, the large and coordinated stimulus from governments globally has secured greater stability in financial markets and a return to economic growth. Commodity prices and industrial demand have recovered and they enter to the 2010-2011 financial year with much greater optimism to than they entered 2009-2010. Their structurally low cost position across commodities, excellent liquidity and strong cash flow has positioned them well to deliver in these unprecedented markets. This has enabled them to continue to grow production and further invest in their industry-leading capacity expansion programme. Their excellent results fully endorse their decision to continue investing through the cycle in their industry leading organic growth programme. They have achieved significant milestones during the year and are on track to deliver a substantial increase in production capacity across their businesses in 2011-12. They remain confident about the future as they continue to deliver their projects and look for further opportunities to enhance value.

FUTURE STRATEGY AND GROWTH

ITCOL is poised to become the world leading Rare Earth Metal, Minor Metal and Noble Alloy Company. It has been built on consistent management strategy that values scale vertical integration, product diversity and quality, continuous growth in higher value products, up gradation of technology, modernization of facilities, strong employee well – being and customer focus. Company’s three dimensional growth strategies of product diversity, geographical reach and vertical integration is the key to sustainability and growth. As a result of this strategy, the company will become leader in all major global Minor Metals and Noble Alloy markets with leading research and development and technology as well as sizable captive supplies of raw materials and outstanding distribution networks. ITCOL has set the target of achieving turnover of Rs. 3500.00 Crores in the FY 2011-12 which will be achieved with total installed capacity of 117600 MTY at plants in HP and Orissa. ITCOL, through its group companies, is expanding its operations by adding new products and enhancing the existing facilities. The Key areas on which the work is on progress are: 1. Setting up facility for mining, crushing and processing of Sillimanite in North East with output capacity of 240,000 TPA Sillimanite Mineral in powder form and 120,000TPA in sized lumps. These products will be used in the manufacture of high temperature refractories and fillers for the furnaces. The facility is likely to be functional by September 2011 and will contribute approx USD 100 millions to the group turnover. 2. They are in process of acquiring 100 Million Tons deposits of coal. In addition to these mines, a complete coal processing unit with the integrated Tar and liquor processing facility for making of furnace grade coke is planned. Coke will be used in house for their own furnaces. The whole set up is expected to be operational by Oct 2011 and will contribute approx USD 50 Million to the group turnover. 3. They are in process of establishing units for the Chrome ore beneficiation Units. These plants are designed for total output capacity of 120,000Tons per month. These plants will be capable of handling both Indian as well as imported lean Chrome ores. The start up of these plant productions is targeted for December 2011. 4. They are in process of establishing a 300 MTD facility for producing steel grade Quick Lime Plant, with yearly output of 100000TPA. The facility will cater to their own captive requirement. In January 2011 they have acquired one facility manufacturing steel grade lime ith a capacity of approx 20000 MTPA. 5. Foresighting the market scope in the minerals like Lime, Quartz, Feldspar, Dolomite, Graphite, Manganese, Chromites and Rare Earth Minerals etc., they are also planning for mining, processing and marketing of these minerals. 6. They are planning to establish and generate their own power in North East and Himachal Pradesh. For this, work on the project report to establish coal based Thermal Power Plant of 200-300MW capacity is in progress. Part of this Power generated will be for their own consumption enhancing their self reliance in power sector, and the remaining power will be supplied to the national grid. 7. To strengthen their operations in North East, they are planning to establish a Noble Alloy plant with 100MVA .Submerged Arc Furnaces (SAF). 8. They are planning to establish facility for the extraction of Rare Earth metals like Cerium, Lanthanum, Neodymium, Ytterbium and other metals from Lanthanide group. 9. They are planning to set up facility to selectively extract metal value from complex ore, concentrates, and recycled and residual material, from Spent Catalysts having Vanadium, Nickel and Molybdenum by Hydrometallurgy process in the current financial year.

MANAGEMENT DISCUSSION AND ANALYSIS

The Economy Global Economy:

The financial crisis is behind them and the world is now a different place. Demand in emerging economies, especially China, surged, almost unaffected by the turmoil in rest of the world. Already, demand in the rest of the world outside Europe and North America has reached pre-crisis levels and volumes of the Chinese market alone is one third higher than 2008. China accounted for 39% of the world market while India overtook Japan to become the world’s third largest market after Europe. Economic recovery across the globe is expected to generate real demand pull. While the former is expected to be generated from investment in infrastructure and private consumption, the latter is expected to emanate from creating inventories which were used up by the economies across the globe in 2009 and 2010. Depreciating dollar is expected to fuel capital investment and consumption expenditure pulling up overall demand. The World Steel Association has forecasted that apparent steel use will increase by 5.9% to 1359 Million Tons (m.t.) in 2011, following 13.3% growth in 2010. In 2012, it is forecast that world steel demand will grow further by 6% to reach a new record of 1441 Million Tons (m.t.)

Indian Economy:

Indian economy is the 3rd largest economy in the world. After the global crisis of 2008, the Indian economy has come out with flying colors. In terms of purchasing power, it is going to touch new heights in the coming years. As per recent reports issued by Centre for Monitoring Indian Economy, India’s GDP growth is expected to expand by 9.2% in 2010-11 as compared to 7.4% in 2009-10. As per planning commission, 11th Five Year Plan targets to increase total investment in infrastructure from around 5% of GDP in the base year of 11^th Five Year Plan to 9% by terminal year of the plan. Government is set to go for a more ambitious infrastructure creation drive through a greater emphasis on private public partnership (PPP) model. The private sector is now expected to contribute at least half of over $ 1 trillion dollar investment planned in infrastructure in the 12th five year Plan (2012-2017). A rise in private investments during the 11^th plan period is in fact expected to compensate for a shortfall in public sector investment. The World Steel Association forecasts India’s steel usage to grow by 13.3% to reach 68.7 Million Tons (m.t.). In 2012, the growth rate is forecast to accelerate further to 14.3%. At the Forex front, the Foreign exchange reserves as on December 2010 totaled US $ 294.60 bn which is an increase of US $ 11bn over the same period last year. It has witnessed a higher growth of 36.5 percent in December 2010 as against 9.3 percent growth in December 2009. 21% of the FDI equity inflow was attracted in the services sector comprising of financial and non financial services. The second largest share of the FDI investment was attracted in the telecommunications sector and metallurgical sector accounted for the third largest share. Labor force in India would continue to be dominated by young workers. Steady uptick in savings and investments rates is also indicative of positive structural change. The global reliance on India as a sourcing hub is expected to increase. Global automotive majors have established a sizeable presence in Indian automotive manufacturing hubs. There will be exponential growth in passenger car sales. According to a survey by the Confederation of Indian industry (CII) and ASCON, around 50 segments in the manufacturing sector have entered into ‘Excellent Growth Category’ and further 22 segments have entered into ‘High Growth Category’ with the growth of around 39 percent and 17.3 percent during the first nine months of the current fiscal. Segments in the Excellent category includes air conditioners, natural gas, tractors, nitrogen fertilizers, ball bearing, electrical and cable wires, auto components, construction equipments, electric fans and tyre industries. According to industry groups, twelve (12) out of the seventeen (17) industry groups have registered positive growth in December 2010 as compared to the same month of the previous year. The highest increase in output is evident in industries like ‘Jute and other vegetable fiber Textiles (except cotton)’ (58.6 percent), followed by ‘Other Manufacturing Industries’ (21.6 percent) and in ‘Metal Products and Parts (21.0 percent). Industry Structure and Development Growth of Noble Alloy and Minor Metal Industry is directly linked to the growth of specialty metals, structural steel products, stainless steel industry, high speed steel products and alloys. Noble Ferro alloys are alloys of iron with a high proportion of elements such as chromium, silicon, manganese, molybdenum, vanadium etc. Ferro alloys are used in the manufacture of all grades of steel. Ferro alloy industry has the potential to make India the hub for Ferro alloys to the world. Demand for stainless steel will grow faster as stainless steel is increasingly the material of choice in many applications where life- cycle costing and appearance is important. Consumer goods like pots, fans, tableware and appliances account for 38% of the world market. Demand from this sector was particularly stable through the crisis and will continue to grow fast as life style products consume more stainless steel. This will be focused in emerging economies. Demand from process equipment manufacturers was very hard hit by the global crisis. Sectors like chemical, pulp and paper, food processing, power generation and desalination have started to recover. Some chemical and petrochemical projects will start in 2011, but largely outside Europe and North America. Stainless steel used in applications for architecture and building accounts for 17% of the world market. 2011 should be a turning point, with low interest rates. The transport sector seems certain to enjoy a good year, as well. Double digit growth rates will be driven not just by emerging countries but also by new emission regulations, such as Euro 6 Norm for diesel engines, which require more stainless steel. All in all, they expect consumer spending, company investments and stock building to drive demand in 2011. Global stainless steel production increased by 24.9% to 30.7 million tons in 2010 compared with 24.5 million tons in 2009, according to International Stainless Steel Forum (ISSF). ISSF cited economic recovery, strong end-user demand, restocking at service centers and fabricators, and refilling of the internal supply chain in mills for the increase. Output grew in all major production areas, with stainless steel producers now accounting for 65% of global production. Chinese output grew 27.8% in 2010 to almost 11.3 million tons, production within the rest of Asia increased by 20.8% to 8.6 million tons. Without any exception, there has been a good recovery in a number of sectors, including structural steel automotive, engineering and yellow goods. Steel prices have been rising sharply since the end of last year on the back of restocking and raw material price increases. Prices of raw material, as a percentage in cost of production are increasing.

FORM 8

Corporate identity number of the company	U29214HP1987PLC007699
Name of the company	INDIAN TECHNOMAC COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	# Village Jagatpur, P O Misserwala, Paonta Sahib, H P – 173021, Himachal Pradesh, India Email Id : corporateaffairs@itcol.co.in
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Bills, stocks etc
Particular of charge holder	Central Bank of India, MID Corporate Finance Branch, GF (Right Wing), Link House, 3 , Bahadur Shah Zafar Marg, New Delhi – 110002, India Email Id : agmdelamid@centralbank.co.in
Nature of instrument creating charge	Deed of Hypothecation, Agreement of Hypothecation of goods, Letter of Hypothecation- Book debts
Date of instrument Creating the charge	17.12.2011
Amount secured by the charge	Rs.750.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC/OD : BASE RATE + 3.50/ %, PCFC:- LIBOR +2.00%+out of pocket expenses subject to availability of forex funds Terms of repayment As per Demand Margin CC/ODBD-25% PCFC/EPC:-15% LC-10% BG-10%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Registered Mortgage of Agricultural Land(1 Bigha , 4 Biswas of Mr. R.K Sharma Situated at Village Mehrauli, New Delhi, India Equitable Mortgage of Residential Property of Mr. R.K Sharma situated at Vasant Kunj, New Delhi, India Equitable Mortgage of Industrial Land (16 Bigha 9 Biswas) Situated at Paonta Sahib, In The Name of Mr. Vinay Sharma Equitable Mortgage of Industrial Land (30 Bigha ) situated at Paonta Sahib, in the name of Mr. Vinay Sharma. pledge of 26,20,500 shares held by Mr. R. K Sharma

CONTINGENT LIABILITIES

A. Claims against the Company not acknowledged as Debts.

Current Year: NIL (Previous Year: NIL)

B. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for

Current Year: Rs.238.075 Millions (Previous Year : Rs.34.389 Millions)

C. Bank Guarantee: Rs.43.025 Millions (Previous Year – Rs.2.673 Millions)

FIXED ASSETS

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Computers

· Vehicles

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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.80

SCORE & RATING EXPLANATIONS

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