MIRA INFORM REPORT

Report Date :

05.03.2012

IDENTIFICATION DETAILS

Name :	JINDAL INDIA LIMITED
Registered Office :	2/1, Ahmed Mamuji Street, PS Bally, Howrah – 711 204, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.1991
Com. Reg. No.:	21-092393
Capital Investment / Paid-up Capital :	Rs. 199.080 million
CIN No.: [Company Identification No.]	U51109WB1991PLC092393
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of ERW/HFIW Black and Galvanized Steel Piles and Tubes, Cold Rolled and Galvanized Plain and Corrugated Sheets.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (59)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 6300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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 :	2/1, Ahmed Mamuji Street, PS Bally, Howrah – 711 204, West Bengal, India
Tel. No.:	91-33-26556298/ 6399/ 26555490/ 0701
Fax No.:	91-33-26555186
E-Mail :	jil@cal2.vsnl.net.in
Area :	10000 sq ft
Location :	Owned
Corporate Office:	LMJ Chamber, 2^nd Floor, 15C, Hemanta Basu Sarani, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22481160/ 1162/ 22482266
Fax No.:	91-33-22481059
Location :	Leased
Factory 1 :	Belur Unit 4, Dharamtalla Road, Belurmath, Howrah – 711 202, West Bengal, India
Tel. No.:	91-33-26542606/ 2299
Fax No.:	91-33-26541770
Area :	14000 sq ft
Location :	Owned
Factory 2 :	Jangalpur Unit National Highway No.6, Village – Jangalpur, P.O. Andul, P.S. Sankrail, District Howrah – 711 302 ,West Bengal, India
Tel. No.:	91-33-26696319/ 0727/ 26691800-04
Fax No.:	91-33-26690356
Factory 3 :	Ghusuri Unit 107/2, Jay Bibi Lane, Ghusuri, Howrah – 711 107, West Bengal, India
Tel. No.:	91-33-26555889/ 3734
Fax No.:	91-33-26553028
Branches :	6-D, Gopala Towers, 25, Rajendra Place, New Delhi – 110 008, India
Tel. No.:	91-11-45552670-75
Fax No.:	91-11-45552676

DIRECTORS

As on 28.09.2011

Name :

Mr. Bhavi Chand Jindal

Designation :

Chairman cum Managing Director

Address :

20/C, Belvedre Road, Alipore, Kolkata- 700027, West Bengal, India

Date of Birth/Age :

15.07.1926

Pan No:

AAGPJ0185P

Date of Appointment :

14.01.1952

DIN No.:

00426886

Name :

Mr. Punit Jatia

Designation :

Joint managing Director

Address :

25, Raja Santosh Road, Alipore, Kolkata-700027, West Bengal, India.

Date of Birth/Age :

14.01.1964

Date of Appointment :

01.03.1997

DIN No.:

00082221

Name :

Mr. Purushottam Das Bhoot

Designation :

Director

Address :

26, P. K. Tagore Street, Kolkata-700006, West Bengal, India.

Date of Birth/Age :

01.03.1929

Date of Appointment :

01.04.1985

DIN No.:

00094087

Other Directorship :

S.No.	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
1	L65999DL1984PLC019465	VIKAS GLOBALONE LIMITED	Director	20/07/1994	20/07/1994	-	Active	NO
2	U01132AS1977PLC001713	BAZALONI GROUP LIMITED	Whole-time director	15/02/1996	15/02/1996	-	Active	NO
3	U51109WB1991PLC092393	JINDAL INDIA LIMITED	Director	1/4/2001	1/4/2001	-	Active	NO
4	L01132WB1911PLC002077	BHATKAWA TEA INDUSTRIES LIMITED.	Director	1/6/2011	1/6/2011	-	Active	NO

Name :

Mr. Ayush Jatia

Designation :

Whole Time Director

Address :

25, raja Santosh Road, Alipore, Kolkata-700027, West Bengal, India,

Date of Birth/Age :

26.02.1986

Date of Appointment :

16.04.2008

DIN No.:

00557505

Other Directorship :

S.No.	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
1	U65993WB1923PTC004723	PRAISE CO PVT LTD	Director	31/12/2005	31/12/2005	-	Active	NO
2	U51109WB1991PLC092393	JINDAL INDIA LIMITED	Whole-time director	24/09/2008	16/04/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Purushottam Das Bhoot
Designation :	Secretary
Address :	26, P. K. Tagore Street, Kolkata-700006, West Bengal, India.
Date of Birth/Age :	01.03.1929
Date of Appointment :	01.04.1985

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Shyam Sunder Jindal	500
Subhadra Jindal	2935
Consolidated Photo $ Investment Limited	190000
Sunita Jatia	114435
P unit Jatia	56825
Bazalonl Group Limited	111000
Jindal Photo Investment Limited	178300
Ayush Jatia	20000
Ulkarsh Jatra	20000
Safe Holding Private Limited	106750
Penrose Mercantiles Limited	150000
Shyam Sunder Jindal (HUF)	400
Flextar Safes Private Limited	95000
Punit Jatia (HUF)	23000
Soyuz Trading Company Limited	196413
RIshiTradlng company Limited	125242
Bhavesh Jindal	100000
Bazaloni Group Limited	300000
Total	1790800

As on 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	77.32
Directors or relatives of Directors	22.68
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of ERW/HFIW Black and Galvanized Steel Piles and Tubes, Cold Rolled and Galvanized Plain and Corrugated Sheets.
Products :	· M.S pipes and tubes · M.S pipes and Fittings · Steel Structurals and poles · C.R. Strips · G.P Coils/ Sheets and G.C. Sheets

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
M.S pipes and tubes	M.T	260000	106818531
M.S pipes and Fittings	M.T	6912	-
Steel Structurals and poles	M.T	4680	-
C.R. Strips	M.T	350000	*128457.593
G.P Coils/ Sheets and G.C. Sheets	M.T	4000000	163926.275

Note:

a) Licenced capacity is not applicable in terms liberalized licensing policy announced by the Government of India.

b) Installed capacity is as certified by the management and accepted by auditors, being a technical matter.

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

Punjab National Bank, 268/2, G.T. Road, Liluah, Howrah-711204, West Bengal, India.

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans Banks secured	165.917	255.101
Working Capital Loans Banks Secured	3096.514	3032.473
Total	3262.431	3287.574
Unsecured Loan
Working capital loans others unsecured	10.000	10.000
Interest accrued due other debt unsecured	0.203	0.203
Total	10.203	10.203

Banking Relations :	--
Auditors :
Name :	G. Sanyal and company Chartered Accountant
Address :	6, Old Post Office Street, Kolkata-700001, West Bengal, India.
PAN.:	AAEFG5079K
Related Party :	· Consolidated Photo $ Investment Limited · Bazalonl Group Limited · Jindal Photo Investment Limited · Safe Holding Private Limited · RIshiTradlng company Limited · Soyuz Trading Company Limited · Consolldated Finvest and holding Limited · Jindal Photo Limited · Jindal Poly Films Limited · Jindal Imaging limited · M.d Jindal Medical Institute and Research Center · Gunjan Trust · Universal Folls Limited · Jindal India thermal power limited

CAPITAL STRUCTURE

As on 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs. 150.000 Million
2000000	Preference share	Rs.100/- each	Rs. 200.000 Million
	Total		Rs. 350.000 Million

Issued, Subscribed :

No. of Shares	Type	Value	Amount
1490800	Equity Shares	Rs.100/- each	Rs.149.080 Million
600000	Preference share	Rs.100/- each	Rs. 60.000 Million
	Total		Rs. 209.080 million

Paid-up capital :

No. of Shares	Type	Value	Amount
1490800	Equity Shares	Rs.100/- each	Rs. 149.080 Million
300000	Preference share	Rs.100/- each	Rs. 30.000 Million
	Total		Rs. 179.080 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs. 150.000 Million
2000000	Preference share	Rs.100/- each	Rs. 200.000 Million
	Total		Rs. 350.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1490800	Equity Shares	Rs.100/- each	Rs. 149.080 Million
500000	Preference share	Rs.100/- each	Rs. 50.000 Million
	Total		Rs. 199.080 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		199.080	209.080	211.580
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1364.874	1095.740	899.059
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1563.954	1304.820	1110.639
LOAN FUNDS
1] Secured Loans		3262.431	3287.574	2760.733
2] Unsecured Loans		10.203	10.203	5.089
TOTAL BORROWING		3272.634	3297.777	2765.822
DEFERRED TAX LIABILITIES		0.000	17.484	8.368
TOTAL		4836.588	4620.081	3884.829
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1428.912	1618.428	1209.673
Capital work-in-progress		21.073	27.422	583.532
INVESTMENT		74.161	74.161	74.161
DEFERREX TAX ASSETS		16.200	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1820.634	1393.244	1061.549
	Sundry Debtors	1216.969	971.835	734.781
	Cash & Bank Balances	386.247	287.754	181.564
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	255.927	568.130	538.119
Total Current Assets		3679.777	3220.963	2516.013
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	295.840	201.697	537.939
	Other Current Liabilities	79.089	113.051	99.560
	Provisions	8.606	6.145	3.544
Total Current Liabilities		383.535	320.893	641.043
Net Current Assets		3296.242	2900.070	1874.970
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Foreign Currency Difference Accounts		0.000	0.000	142.493
TOTAL		4836.588	4620.081	3884.829

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	11968.651	10656.446	7799.882
		Other Income	196.269	138.457	183.958
		TOTAL (A)	12164.920	10794.903	7983.840
Less	EXPENSES
		Consumption materials changes inventories	9874.932	8164.313
		Manufacturing service costs	810.327	835.761
		Employee related expenses	99.966	78.073
		Administrative selling other expenses	455.382	568.461
		TOTAL (B)	11240.607	9646.608	7544.320
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		924.313	1148.295	439.520
Less	FINANCIAL EXPENSES (D)		211.197	213.194	191.205
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		713.116	935.101	248.315
Less/ Add	DEPRECIATION/ AMORTISATION (F)		322.863	358.225	215.855
	PROFIT BEFORE TAX (E-F) (G)		390.253	576.876	32.460
Less	TAX (I)		123.767	183.437	27.392
	PROFIT AFTER TAX (G-I) (J)		266.486	393.439	5.068
	BALANCE CARRIED TO THE B/S		175.162	0.000	82.680
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	3888.175	3751.146	2795.728
		Others (freight)	240.224	215.787	170.469
		Miscellaneous	0.176	3.666	10.616
	TOTAL EARNINGS		4128.575	3970.599	2976.813
	IMPORTS
		Raw Materials	2882.478	2732.965	1669.984
		Stores & Spares	51.838	54.693	99.369
		Capital Goods	32.598	3.088	407.715
	TOTAL IMPORTS		2966.914	2790.746	2177.068
	Earnings Per Share (Rs.)		178.75	263.22	(0.19)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.19	3.64	0.06
Net Profit Margin (PBT/Sales)	(%)	3.26	5.41	0.42
Return on Total Assets (PBT/Total Assets}	(%)	7.64	11.92	0.87
Return on Investment (ROI) (PBT/Networth)		0.02	0.44	0.29
Debt Equity Ratio (Total Liability/Networth)		2.34	2.77	30.79
Current Ratio (Current Asset/Current Liability)		9.59	10.04	3.92

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the current financial year, the company rooks various strategic steps to improve its production and turnover volumes and profitability. As a result of this sincere effort, the Company posted an impressive performance during the year and earned a profit after tax of Rs. 393.400 Million as compared to Rs, 5.100 Million in the previous year.

During the year the overall operation of the Company is satisfactory. The domestic and export sales volume continued to show rising trend and total gross turnover for the year stood at Rs. 11239.400 Million as compared to Rs. 8361.200 Million in the previous year.

Form 8:

Corporate identity number of the company	U51109WB1991PLC092393
Name of the company	JINDAL INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	2/1, Ahmed Mamuji Street, PS Bally, Howrah-711204 West Bengal, India. Email- jil@cal2.vsnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90245046
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Punjab National Bank, 268/2, G.T. Road, Liluah, Howrah-711204, West Bengal, India. Email- ramanujam@pnb.co.in
Nature of instrument creating charge	1. Hypothecation of Plant & Machinery and other assets dated 15.07.2010 2. Deed of Hypothecation to secure LC on DA basis/DPG/FLG dated 15.07.2010 3. Hypothecation of Goods and Book Debt to secure Cash Credit facilities dated 15.07.2010 4. Hypothecation of Current Assets dated 15.07.2010 5. Agreement for Cash Credit dated 15.07.2010 6. Supplementary Agreements dated 15.07.2010 7. General Counter Indemnity (three) dated 15.07.2010 8. Seven letters of continuity evidencing extension of charge on immovable properties on 15.07.2010
Date of instrument Creating the charge	15.07.2010
Amount secured by the charge	Rs. 7300.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest BPLR with monthly rests, which is 11% p.a subject to change from time to time. Terms of repayment Repayable in quarterly installments and interest is payable as and when debited/due. Margin 5 to 25% Extent and operation of the charge Charge on the entire assets of M/s Jindal India Limited created in favor of Punjab National Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stocks of all sorts of Raw Materials, pipes and tubes, old structures, all sorts of finished & semi finished goods manufactured by Jindal India Limited Liluah (Howrah) lying at their Premises and Godown. Book Debts including export receivables. Spares and Components. R/R/Bills of Lading covering consignment of Raw Materials. Raw Materials of Finished Goods. Govt, Semi-Govt. and Other parties supplies Bills, and Block of Assets of the Company.
Date of instrument modifying the charge	26.03.2009
Particulars of the present modification	By the aforesaid modification the overall limit has been enhanced to Rs. 7300.000 Million by way of various credit facilities.

Fixed Assets:

· Land and Building

· Plant and Machinery

· Electric Equipments

· Computers

· Furniture and Fixtures

· Vehicles

· Computer Software

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.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		59

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.