MIRA INFORM REPORT

Report Date :

25.07.2012

IDENTIFICATION DETAILS

Name :	XINDIA STEELS LIMITED
Registered Office :	No. 52/44, 8th Main, 2nd Cross, Ganesha Block, Mahalaxmi Layout, Bangalore – 560096, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Year of Incorporation :	14.05.2007
Com. Reg. No.:	08-042792
Capital Investment / Paid-up Capital :	Rs. 719.857 Millions
CIN No.: [Company Identification No.]	U27106KA2007PLC042792
TAN No.: [Tax Deduction & Collection Account No.]	BLRX00082F
PAN No.: [Permanent Account No.]	AAACX0521A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is involved in the business of iron ore processing, steel making, steel and iron finished product manufacturing and other associated activities
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 2800000
Status :	Yet to commenced business
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Though the company incorporated in the year 2007. It is yet to commenced its commercial operation. Payments are unknown. The company can be considered for business dealings with some caution.

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

EXTERNAL AGENCY RATING

Agency Name	Rating
CRISIL	BBB- / Stable / CRISIL A3

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Corporate Office :	No. 52/44, 8th Main, 2nd Cross, Ganesha Block, Mahalaxmi Layout, Bangalore – 560096, Karnataka, India
Tel. No.:	91-80-23599222/ 23497581
Fax No.:	91-80-23192498/ 23491490
E-Mail :	mh2@xindiasteels.com alex@xindiasteels.com alex@manasara.com info@xindiasteels.com
Website :	www.xindiasteels.com

DIRECTORS

AS ON 22.08.2011

Name :

Mr. Yang Bin

Designation :

Chairman and Managing Director

Address :

5-3-2, 2672 Worker Village, Fuxing District, Handan City Heibei Province, China

Date of Birth/Age :

04.05.1964

Date of Appointment :

17.09.2008

DIN No.:

02079200

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	U27106KA2007PLC042792	XINDIA STEELS LIMITED	Director	10/07/2011	17/09/2008	-	Active	NO

Name :

Mr. Alex Puthenchira Johnson

Designation :

Director

Address :

F-204, Raheja Gardenia, 38, Millers Road, Opposite Benson Town, Bangalore – 560046, Karnataka, India

Date of Birth/Age :

31.05.1965

Date of Appointment :

14.05.2007

DIN No.:

00502359

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	U40100KA2005PLC036884	ZEALTEC ENERGY LIMITED	Director	03/08/2005	03/08/2005	-	Active	NO
2	U51420KA2006PLC040284	MINMET GLOBAL INFRASTRUCTURE LIMITED	Director	25/08/2006	25/08/2006	-	Active	NO
3	U27106KA2007PLC042792	XINDIA STEELS LIMITED	Director	01/01/2012	14/05/2007	-	Active	NO
4	U85110KA1996PLC021030	HAMPI INDUSTRRY LIMITED	Director	15/09/2008	06/09/2007	-	Amalgamated	NO
5	U32202KA1994PLC015460	CELLCOMM SOLUTIONS LIMITED	Director	30/09/2008	16/11/2007	-	Active	NO
6	U45201KA2009PLC049358	XINDIA CONSTRUCTIONS LIMITED	Director	12/03/2009	12/03/2009	-	Active	NO
7	U13209KA2010PTC053636	BESTO MINING INDIA PRIVATE LIMITED	Director	14/05/2010	14/05/2010	-	Active	NO
8	U14200KA2008PLC045891	DAKSHIN MINES AND MINERALS LIMITED	Additional director	17/08/2010	17/08/2010	31/12/2010	Active	NO
9	U27310KA2010PLC055188	TUNGABHADRA BENEFICIATION LIMITED	Director	17/09/2010	17/09/2010	-	Active	NO
10	U26940KA2010PLC055251	XINDIA INTERNATIONAL CEMENTS LIMITED	Director	22/09/2010	22/09/2010	-	Active	NO
11	U15492KA2011PTC060584	ORIGIN COFFEE ROASTING PRIVATE LIMITED	Director	26/09/2011	26/09/2011	-	Active	NO
12	U15490KL2012PTC031281	PRASAN SOLUTIONS (INDIA) PRIVATE LIMITED	Director	22/05/2012	22/05/2012	-	Active	NO

Name :

Mr. Kuruvilla Joseph Kelachandra

Designation :

Director

Address :

No. 5/3, Embassy Woods, No. 6A, Cunningham Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

30.05.1955

Date of Appointment :

17.09.2008

DIN No.:

00945900

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	U25199KA1991PTC012257	KINGSWAY RUBBER PRODUCTS PRIVATE LIMITED	Director	26/08/1991	26/08/1991	-	Active	NO
2	U60231KA1984PTC006006	KELACHANDRA LOGISTICS PRIVATE LIMITED	Director	18/06/1992	18/06/1992	-	Active	NO
3	U85110KA1994PLC016453	KELACHANDRA LEASINGANDFINANCE LIMITED	Managing director	25/10/1994	25/10/1994	-	Active	NO
4	U25191KL1910PLC000516	KUTTANAD RUBBER CO LTD	Managing director	29/03/1995	29/03/1995	-	Active	NO
5	U85110KA1995PTC018594	D M ESTATES PRIVATE LIMITED	Director	31/08/1995	31/08/1995	-	Active	NO
6	U02922KA1995PTC018795	KINGSWAY PROJECTS PRIVATE LIMITED	Managing director	01/06/2012	20/09/1995	-	Active	NO
7	U70101KA1995PTC018815	WHITEFIELD ESTATES PRIVATE LIMITED	Director	25/09/1995	25/09/1995	-	Active	NO
8	U51909KL2000PTC013636	KINGSWAY EXPORTS PRIVATE LIMITED	Director	28/01/2000	28/01/2000	-	Active	NO
9	U45309KA2000PTC028147	GOLFLINKS SOFTWARE PARK PRIVATE LIMITED	Director	17/11/2000	17/11/2000	-	Active	NO
10	U70200KA2002PTC030485	BOOK AND MARKS HOSPITALITY PRIVATE LIMITED	Director	14/05/2002	14/05/2002	-	Active	NO
11	U63090KA2002PTC031031	KINGSWAY TRAVEL AGENCIES PRIVATE LIMITED	Director	23/09/2002	23/09/2002	-	Active	NO
12	U51102KA2004PTC034295	WILDFLOWER ESTATE AND RESORTS PRIVATE LIMITED	Director	08/07/2004	08/07/2004	-	Active	NO
13	U85110KA1994PTC016281	GOLF LINK-EMBASSY BUSINESS PARK MANAGEMENT SERVICES PRIVATE LIMITED	Director	05/11/2004	05/11/2004	-	Active	NO
14	U18101KA2004PTC034502	MEREENA CREATIONS PRIVATE LIMITED	Director	15/10/2005	15/10/2005	16/10/2007	Active	NO
15	U27106KA2007PLC042792	XINDIA STEELS LIMITED	Director	14/05/2007	14/05/2007	-	Active	NO
16	U17118KA2006PTC041015	KINGSWAY GARMENTS PRIVATE LIMITED	Director	01/09/2007	01/09/2007	22/09/2009	Active	NO
17	U85110KA1996PLC021030	HAMPI INDUSTRRY LIMITED	Director	15/09/2008	06/09/2007	-	Amalgamated	NO
18	U45201KA2007PTC041384	G.V PROPERTIES PRIVATE LIMITED	Director	30/01/2008	30/01/2008	-	Active	NO
19	U65999KA2008PTC047117	KELACHANDRA HOLDINGS PRIVATE LIMITED	Director	10/07/2008	10/07/2008	-	Active	NO
20	U45201KA2009PLC049358	XINDIA CONSTRUCTIONS LIMITED	Director	12/03/2009	12/03/2009	-	Active	NO
21	U27310KA2010PLC055188	TUNGABHADRA BENEFICIATION LIMITED	Director	17/09/2010	17/09/2010	-	Active	NO
22	U26940KA2010PLC055251	XINDIA INTERNATIONAL CEMENTS LIMITED	Director	22/09/2010	22/09/2010	-	Active	NO
23	U15492KA2011PTC060584	ORIGIN COFFEE ROASTING PRIVATE LIMITED	Director	26/09/2011	26/09/2011	-	Active	NO

Name :

Mr. Fang Gang

Designation :

Director

Address :

10A Building 16, Moshikou East Road, Haidina District, Beijing, China

Date of Birth/Age :

31.05.1959

Date of Appointment :

17.09.2008

DIN No.:

02079182

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	Company/ LLP Status	Defaulting status
1	U27106KA2007PLC042792	XINDIA STEELS LIMITED	Director	13/07/2009	17/09/2008	Active	NO

Name :

Mr. Alex Puthenchira Johnson

Designation :

Director

Address :

F-204, Raheja Gardenia, 38

Millers Road, Opposite Benson TOWN

Bangalore - 560046, Karnataka, India

Date of Birth/Age :

31.05.1965

Date of Appointment :

31.12.2010

DIN No.:

00502359

KEY EXECUTIVES

Name :	Ms. Madhavi Hegde
Designation :	Secretary
Address :	#24, 17^th Cross, T G Loayout, Ittamadu, B S K, 3^rd Stage, Bangalore – 560085, Karnataka, India
Date of Birth/Age :	30.07.1983
Date of Appointment :	02.08.2010
PAN No.:	ADIPH5692N
Name :	Jiang Junjie
Designation :	Head of Technical
Date of Birth/Age :	42 Years
Qualification :	Engineering
Experience :	18 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.08.2011

Names of Shareholders	No. of Shares
Mr. Alex Puthenchira Johnson	8248656
Mr. Srivatsan Attur	123830
Mr. Kuruvilla Joseph Kelachandra	4537213
Mr. Fran Baby	24943
Mr. Vinod V. Menon	7180
Ms. Deena Davy	32180
Mrs. Sujatha Sadanand	232030
Alex Puthenchira Johnson Proprietor of Manasara Investment	8248656
Alex Puthenchira Johnson Proprietor of Manasara Venture	8248656
Mr. Iyer Gopalswamy Ramanathan	1133601
Mr. S H Prakash	201651
Mr. P K Sambamoorthy	94188
Mrs. K Padmavati	20001
Mr. K J George	4537213
Mr. Victor J Pais	1800001

AS ON 22.08.2011

Names of Allottees	No. of Shares
China National Metal Products Company Limited, China	3308800
Xinxing Heavy Industries Group Company Limited, China	5725480
Mcwane India Trading Company Limited, Mauritius	15600000
Joinus Venture Capital Company Limited, China	9100000
Lianyungang Xinjin International Trde Company Limited, China	1300000
Xiangfen County Hongda Group Cement and Building Material Company Limited, China	15600000
Mr. P K Sambamoorthy	19187
Mr. Fran Baby	7763
H R Channakeshava	200000
Mr. Alex Puthenchira Johnson	1706208
Alex Puthenchira Johnson Proprietor of Manasara Investment	1706208
Alex Puthenchira Johnson Proprietor of Manasara Venture	1706208
Mr. Kuruvilla Joseph Kelachandra	937213
Mr. K J George	937213
Swarna Ramanathan	160000
Total	58014280

AS ON 22.08.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	72.16
Bodies corporate
Directors or relatives of directors	26.03
Other top fifty shareholders	1.81
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is involved in the business of iron ore processing, steel making, steel and iron finished product manufacturing and other associated activities

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Industrial Finance Branch, 61, Residency Plaza, Residency Road, Bangalore – 560025, Karnataka, India

· Punjab National Bank, Large Corporate Branch, Centenary Building, No. 28, M G Road, Bangalore – 560001, Karnataka, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Rupee term loans banks secured	1644.950	844.357
Working capital loans banks secured	320.279	0.000
Loans taken for vehicles secured	0.498	1.324
Total	1965.727	845.681
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Loans directors unsecured	113.000	59.604
Total	113.000	59.604

Banking Relations :	--
Auditors :
Name :	Gnanoba and Bhat Chartered Accountants
Address :	No. 45, I Floor, Annamalai Arcade, I Cross, Wilson Garden, Hosur Main Road, Bangalore – 560027, Karnataka, India
PAN No.:	AAAFG5742M
Joint Venture :	Xindia Tianjin Pipes Company Limited
Associates/Subsidiaries :	· China National Metal Products Company Limited, China · Xinxing Heavy Industry Company Limited, China · Xindia Tianjin Pipes Limited, China · Zealtec Energy Private Limited (previously known as Zealtec Infosolutions Private Limited) · Kingsway Travel Agencies Private Limited · Consolidated Management Group

CAPITAL STRUCTURE

AS ON 22.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
130,000,000	Equity Share	Rs.10/- each	Rs. 1300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130,000,000	Equity Share	Rs.10/- each	Rs. 1300.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
130,000,000	Equity Share	Rs.10/- each	Rs. 1300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
719857200	Equity Share	Rs.10/- each	Rs. 719.857 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		719.857	719.857	655.807
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		719.857	719.857	655.807
LOAN FUNDS
1] Secured Loans		1965.727	845.681	2.231
2] Unsecured Loans		113.000	59.604	120.084
TOTAL BORROWING		2078.727	905.285	122.315
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2798.584	1625.142	778.122
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		404.184	388.892	355.196
Capital work-in-progress		2098.008	1154.359	31.002
INVESTMENT		0.935	107.733	393.894
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	624.260	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	84.421	40.660	2.558
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	212.201	126.671	17.891
Total Current Assets		920.882	167.331	20.449
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	321.362	33.641	1.051
	Other Current Liabilities	218.593	136.354	0.947
	Provisions	85.470	23.178	20.421
Total Current Liabilities		625.425	193.173	22.419
Net Current Assets		295.457	(23.842)	(1.970)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2798.584	1625.142	778.122

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	0.000	0.000
		Other Income	0.000	0.000
		TOTAL (A)	0.000	0.000
Less	EXPENSES
		Office Expenses	0.000	0.000
		Administrative Expenses	0.254	0.200
		Advertising Expenses	0.000	0.000
		TOTAL (B)	0.254	0.200
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(0.254)	(0.200)
Less	FINANCIAL EXPENSES (D)		0.000	0.000
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(0.254)	(0.200)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.000
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		(0.254)	(0.200)
Less	TAX (H)		0.000	0.000
	PROFIT/ LOSS AFTER TAX (G-H) (I)		(0.254)	(0.200)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	(0.02)	(0.04)	N.A.
Return on Investment (ROI) (PBT/Networth)		(0.00)	((0.00)	N.A.
Debt Equity Ratio (Total Liability/Networth)		3.76	1.53	0.22
Current Ratio (Current Asset/Current Liability)		1.47	0.87	0.91

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last two years	No
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

NATURE OF INDUSTRY:

Xindia Steels Limited (Xindia/XSL/Company) was established in May 2007 as a public limited company, with an authorized share capital of Rs. 5.000 Millions with Indian promoters.

In January 2008, the Company entered into Joint Venture with various parties, predominantly with (i) Xinxing Heavy Industries Group Company Limited, a part of Xinxing Cathay International Group (formerly known as Xinxing Pipes Group) (XHG), and (ii) China National Metal Products Company Limited, a part of China Minmetals Group (CMP).

While construction of factory building and necessary infrastructure therein was being undertaken, Xindia, in December 2010, executed another SHA with multiple parties, enhancing its mutual co-operation from China and Indian parties to United States of America, and roped in McWane as one of its partners. Currently, the following major partners are associated in the shareholding structure of Xindia:

· Xinxing Heavy Industries Group Company Limited

,

· China National Metal Products Company Limited

· Joinus Venture Capital Company Limited

· Xiangfen County Hongda Group Cement & Building Materials Company Limited

McWane India Trading Company Limited.

The Company is in advanced stages of bringing into effect the above-stated co-operation and is expected to complete the deal at the earliest, in any case, within a couple of months.

XSL is basically involved in the business of iron ore processing, steel making, steel and iron finished product manufacturing and other associated activities as enumerated in the Memorandum of Association of the Company.

The Company aims to be among the lowest cost producers of Iron and Steel finished products. This will be achieved by leveraging on access to the latest cutting edge steel technology, economical processing and utilization of raw material. It also believes in providing the highest quality products to the customers by investing in ‘state-of-the-art’ international technology & equipment by adopting the best operating practices, attracting & nurturing the best talent from all over the world.

FOREIGN INVESTMENTS OR COLLABORATORS, IF ANY:

As stated elsewhere hereinabove, the Authorised Capital of the Company is Rs. 1300.000 Millions, out of which Rs. 719.800 Millions has been paid up currently. The existing Joint Venture partners of the Company are:

China National Metal Products Company Limited, a part of China Minmetals Group (CMP) with 19.96 % stake in the capital structure of Rs.719.800 Millions of the Company , is one of the largest global mineral and metal trading companies. Minmetals have over 40 successful joint ventures across the globe. China Minmetals Corporation established in 1950, is a large-size international manufacturing and trading group of metals, minerals and electrical products. In 1999, Minmetals was listed among the 44 "key enterprises" managed by the Central Government.

Xinxing Heavy Industries Group Company Limited, a part of Xinxing Cathay International Group (formerly known as Xinxing Pipes Group) with 35.03% stake in the capital structure of Rs. .719.800 Millions of the Company, is a 1.6 Billion USD Central Government Company in China. Xinxing Cathay is one of the top 500 corporations in China. Jihua Group Corporation Limited, which is a part of Xinxing Cathay is listed on the Shanghai Stock Exchange since 2010. Xinxing Ductile Iron Pipes Company Limited, which is also a part of Xinxing Cathay is listed on the Shenzhen Stock Exchange since 1997. Xinxing Ductile Iron Pipes Company Limited is the largest Ductile Iron Pipe manufacturers in the world. Xinxing Heavy Industries Group Company Limited has multi locational manufacturing facilities producing ductile iron pipe equipments, steel plant equipments, petrochemical equipments, iron ore processing and cement equipments.

In addition to the above, the Company had executed a Joint Venture and Shareholders Agreement on 9 December 2010. Details of new partners and their proposed shareholding as per the Agreement are as under:

Joinus Venture Capital Company Limited., a Company incorporated in the Peoples Republic of China, proposed to hold 7% stake in the proposed capital structure of Rs. 1300.000 Millions of the Company. Joinus Venture has been established by Guangdong Shaoguan Hydraulics Company, Shengze Energy Technology Company, and Shanxi Huifengxingye Coal and coking Group. These Companies are expert in the technology of metallurgy, iron and steel making, coke oven gas recovery and utilization, low heating and high ash coal generation power, in DIPs model etc. They are also good in circumstance protection, clear and effective burning coal, Ductile Iron Pipes production, coke making, prime coking coal, coke resource etc.

Lianyungang Xinjin International Trade Company Limited, a Subsidiary Company of Xiangfen County Hongda Group. It is incorporated in the Peoples Republic of China, proposed to hold 1% stake in the capital structure of the Company.

Xiangfen County Hongda Group Cement & Building Materials Company Limited., is one of the Subsidiary of Xiangfen County Hongda Group, and has the largest cement plant in Shanxi Province, proposed to hold 12% stake in the capital structure of Xindia. The main product included general purpose Portland cement, blast-furnace portland cement and composite Portland cement. It is an integrated Group Company including iron making, coking, cement, gas generation. It has 300 cubic meter iron making plant, 3 lakh tons coke-oven plant per annual, 1 million capacity cement plant, 6000KW and 3000KW gas generating power factory separately.

McWane India Trading Company Limited., a company incorporated and existing under the laws of Mauritius and a wholly owned subsidiary of Canada Pipe Company Limited, which in turn is wholly owned by McWane Inc. (a US entity). Proposed shareholding of McWane India in Xindia Steels is 12% of the capital structure of Xindia. The history of McWane traces its roots to the daring and ingenuity of a family that lived in the Blue Ridge Mountains of Virginia. Charles Phillip (C.P.) McWane Inc. conducts business throughout North America and the world. Its major plants by industry include four pipe facilities, four valve and hydrant facilities, seven soil pipe and utility fittings facilities, seven tank manufacturing facilities and one fire extinguisher facility.

In view of globalization and the liberalized policies of the Foreign Investment Promotion Board (FIPB), the Company is expecting much more investments from joint venture partners and collaborators, show-casing a positive growth and expansion of its activities and is set to earn very good revenue in foreign exchange.

BACKGROUND DETAILS:

Mr. Yang Bin is a MBA Graduate from Xi’an Jiaotong University, China and also a Graduate from Xi’an University of Architecture and Technology.

His knowledge in the field of business of our Company is immeasurable and is extremely helpful for the development of the Company. His eagerness for learning new things and doing better things in the best manner gave him the opportunity to serve in different industries at different places in different positions. He is one of the talented personnel who have extensive hands-on experience in the field of the Company.

He possesses rich knowledge and experience in many other fields also. He is considered to be one of the important pillars for the Company, as he is associated with the Company in all the ways. As a major joint venture partner, Mr. Yang Bin was instrumental in steering the pilot project of its size and kind for the Company, at the project site at Koppal and Hirebaganal, Koppal Taluk and District. He has shouldered multiple portfolio of activities and responsibilities in the Company and performing many roles in management, administration, functioning in the Company. He has been assigned with multifarious functions which require his constant attention and potential contribution for the growth, effective functioning and ambitious plans of the Company.

Considering the above-mentioned facts, the Board decided to remunerate him suitably for his performance in the Company.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27106KA2007PLC042792
Name of the company	XINDIA STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 52/44, 8th Main, 2nd cross, Ganesha Block, Mahalaxmi Layout, Bangalore - 560096, Karnataka, India
This form is for	Creation of Charge
Type of charge	Book debts Movable property
Particular of charge holder	State Bank of India, Industrial Finance Branch, 61, Residency Plaza, Residency Road, Bangalore – 560025, Karnataka, India Email ID: rm4.ifbban@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1. Joint Deed of Hypothecation dated 20.05.2011 2. Hypothecation Deed for Second Charge on moveable assets forming part of fixed/block assets dated 20.05.2011 3. Working Capital Consortium Agreement dated 20.05.2011
Date of instrument Creating the charge	20.05.2011
Amount secured by the charge	Rs. 676.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment SBI - CC - Running account repayable on demand EPC/PCFC /FBD/EBR/LC/BG- 12 Months BOI - CC - Repayable on demand LC- Not exceeding 180 days EPC/FBP/DA/BG - As per Bank norms PNB -CC - Running account repayable on demand ILC/FLC - Tenor - ILC Not exceeding 90 days, FLC - Not exceeding 180 days BG - As per Bank norms. Margin SBI - RM/SIP/FG/Stores & Spares/Receivables - 25% (Cover Period - 90 days) EPC/PCFC/FBD/EBR - 25% LC/BG - 10% BOI - CC/EPC/FBP - 25% LC/DA/BG -10% PNB -CC/PC - 25% LC/BG -10% FOBP/FOUBP/FOBNLC/FOUBNLC – Nil Extent and Operation of the charge The charge shall operate to the extent of the loan amount plus interest commission costs expenses and other charges thereon. Others Total Working Capital Loan amount of Rs. 676.000 Millions includes loan from SBI - Rs. 258.500 Millions, BOI - Rs. 202.500 Millions, PNB - Rs. 215.000 Millions.
Short particulars of the property charged	First Charge on the whole of the current assets of the Borrower namely, Stocks of Raw Materials, Stocks in process, Semi-Finished and Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumable stores and spares), Bills Receivables and Book Debts and all other moveables, both present and future of the borrower's manufacturing division at Kunikere and Hirebaganal Villages whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the Borrower's factories, premises and godowns situated at Kunikere and Hirebaganal Villages in the State of Karnataka or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the Borrower and either by way of substitution or addition. The second Charge on the whole of the movable properties of the Company including its movable plant and machinery, machinery spares, tolls and accessories and other movables, both present and future (save and except book debts) whether installed or not and whether now lying loose or in cases or which are now lying or stored in about or shall hereafter from time to time during the continuance of the security be brought into or upon or be stored at their manufacturing division at Kunikere and Hirebaganal Village Koppal Taluk and District, Karnataka or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high seas or on orders or delivery, wheresoever in the possession of the company.

CONTINGENT LIABILITIES

a. Contingent liabilities not provided for in respect of Bank Guarantee for Rs. 31.208 Millions towards import of capital equipments under EPCG and Rs 0.500 Million towards Sales tax registration in Vishakapatnam. Andhra Pradesh.

b. The company has provided Counter guarantee against guarantee given by State Bank of India, IFB Branch, Bangalore, for a sum not exceeding Rs.100.000 millions on our behalf in favour of various departments of Central or State Government, Semi Government bodies, local or public bodies or authorities and various persons, banks, companies or corporations specified by us in connection with the supply of materials, installations and erection of machinery and due performance and fulfillment of all contracts whatsoever entered into by company.

FIXED ASSETS:

· Land Contractual Rights

· Plant and Machinery

· Factory Equipments

· Office Equipments

· Computers and Peripherals

· Furniture and Fixtures

· 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] 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. 56.02
UK Pound	1	Rs. 86.89
Euro	1	Rs. 67.84

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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		27

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.