1. Summary Information

		Country	India
Company Name	RATNAMANI METALS AND TUBES LIMITED	Principal Name 1	Mr. Prakash M. Sanghvi
Status	Good	Principal Name 2	Mr. Jayantilal M. Sanghvi
		Registration #	04-006460
Street Address	17 Rajmugat Society, Naranpura Char Rasta, Ankur Road Naranpura, Ahmedabad – 380013, Gujarat, India
Established Date	15.09.1983	SIC Code	--
Telephone#	91-79-27415501/2/3/4	Business Style 1	Manufacturing
Fax #	91-79-2748 0999	Business Style 2	Marketing of Stainless Steel Tubes and Pipes, Saw Pipes and Carbon Steel Tubes and Pipes.
Homepage	www.ratnamani.com	Product Name 1	Stainless Steel Welded Tubes and Pipes
# of employees	12000 (approximately)	Product Name 2	EFSW Carbon Steel Pipes
Paid up capital	Rs.92750000/-	Product Name 3	--
Shareholders	Total shareholding of Promoter and Promoter Group – 58.90% Total Public shareholding – 41.10%	Banking	Dena Bank
Public Limited Corp.	Yes	Business Period	29 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	A (66)
Related Company
Relation	Country	Company Name	CEO
Subsidiaries		Ratnamani Food Products Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	2,632,585,000	Current Liabilities	2,211,549,000
Inventories	3,518,056,000	Long-term Liabilities	2,556,599,000
Fixed Assets	3,486,208,000	Other Liabilities	711,198,000
Deferred Assets	--	Total Liabilities	5,479,346,000
Invest& other Assets	191,878,000	Retained Earnings
		Net Worth	4,349,381,000
Total Assets	9,828,727,000	Total Liab. & Equity	9,828,727,000
Total Assets (Previous Year)	8,525,635,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	8,002,522,000	Net Profit	831,735,000
Sales(Previous yr)	8,368,623,000	Net Profit(Prev.yr)	814,271,000

MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	RATNAMANI METALS AND TUBES LIMITED
Registered Office :	17 Rajmugat Society, Naranpura Char Rasta, Ankur Road Naranpura, Ahmedabad – 380013, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.09.1983
Com. Reg. No.:	04-006460
Paid-up Capital :	Rs.92.750 millions
CIN No.: [Company Identification No.]	L70109GJ1983PLC006460
TAN No.: [Tax Deduction & Collection Account No.]	AHMR01519A
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchange.
Line of Business :	Manufacturing and marketing of Stainless Steel Tubes and Pipes, Saw Pipes and Carbon Steel Tubes and Pipes.
No. of Employees :	12000 (approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

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 17000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and a 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 / Sales Office :	17 Rajmugat Society, Naranpura Char Rasta, Ankur Road Naranpura, Ahmedabad – 380013, Gujarat, India
Tel. No.:	91-79-27415501/2/3/4
Fax No.:	91-79-2748 0999
E-Mail :	info@ratnamani.com jayantimsanghvi@ratnamani.com jiten.soni@ratnamani.com
Website :	www.ratnamani.com
Mumbai Office :	404-B Sukh Sagar Building, N.S Patkar Marg, Chowpatty, Mumbai - 400 007, Maharashtra
Tel. No.:	91-22-43334555
Fax No.:	91-22-43334575
E-Mail :	info.mumbai@ratnamani.com
Head Office / Factory 1:	STAINLESS STEEL TUBES AND PIPES DIVISION Survey No. 769, Ahmedabad Mehsana Highway, Village – Indrad, Near Chhatral GIDC, Taluka – Kadi, District. – Mehsana, Gujarat, India
Tel. No.:	91-2764-232254/232263/233766
Fax No.:	91-2764-234105/233098
E-Mail :	info.sstp@ratnamani.com
Website :	www.ratnamani.com
Factory 2:	SAW PIPE DIVISION Plot No. 3306, 3308 & 3309, GIDC–Chhatral,Taluka – Kalol, District.– Mehsana, Gujarat, India
Tel. No.:	91-2764-232234/233919/232409
Fax No.:	91-2764-233859
Factory 3:	KUTCH DIVISION Survey No. 474, Village – Bhimasar, Taluka – Anjar, District.–Kutch, Gujarat, India
Tel. No.:	91-2836-285538/285539
Fax No.:	91-2836-285540
Branches :	44, C. P. Tank Road, Mumbai – 400 004, Maharashtra, India
Ratnamani Techno Casts Limited (RTCL) :	Plot No. 3310, GIDC Estate Chhatral, Phase IV, Ahmedabad – Mehsana Highway, P.O. Chhatral – 382 729, Ta: Kalol, Dist. Gandhinagar, Gujarat, India
Tel. No.:	91-2764-233327 / 234488
Fax No.:	91-2764-233165
E-Mail :	info@ratnamanitechnocasts.com

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Prakash M. Sanghvi
Designation :	Chairman and Managing Director
Date of Birth/Age :	49 years
Qualification :	Matriculation
Experience :	28 years
Date of Appointment :	12.06.1989
Name :	Mr. Jayantilal M. Sanghvi
Designation :	Whole-time Director
Qualification :	1^st B.Com.
Date of Appointment :	12.06.1989
Name :	Mrs. Shantilal M. Sanghvi
Designation :	Director
Qualification :	Under graduate
Date of Appointment :	01.11.1998
Name :	Mr. D. C. Anjaria
Designation :	Director
Name :	Dr. Vinodkumar M. Agarwal
Designation :	Director
Name :	Mr. P. M. Merita
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Rakesh Agarwal
Designation :	Accounts Department
Name :	Mr. Jiten Soni
Designation :	Deputy Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	27,341,073	58.90
Sub Total	27,341,073	58.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27,341,073	58.90
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	594,128	1.28
Financial Institutions / Banks	330	--
Foreign Institutional Investors	5,540,672	11.94
Sub Total	6,135,130	13.32
(2) Non-Institutions
Bodies Corporate	1,270,962	2.74
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	3,903,740	8.41
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	7,310,216	15.75
Any Others (Specify)	454,488	0.98
Non Resident Indians	396,846	0.85
Directors & their Relatives & Friends	56,658	0.12
Others	984	--
Sub Total	12,939,406	27.88
Total Public shareholding (B)	19,074,536	41.10
Total (A)+(B)	46,415,609	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	46,415,609	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing and marketing of Stainless Steel Tubes and Pipes, Saw Pipes and Carbon Steel Tubes and Pipes.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
730640	Stainless Steel Welded Tubes and Pipes
730490	Stainless Steel Seamless Tubes and Pipes (Cold-Drawn)
730690	EFSW Carbon Steel Pipes
730610	Carbon Steel Saw Pipes Upto 16” (406.4mm)
730512	Carbon Steel Saw Pipes Above 16”

PRODUCTION STATUS (As on 31.03.2011):-

Particulars	Unit	Installed Capacity	Actual Production
Stainless Steel Tubes and Pipes	MT	21900	12103
Carbon Steel Pipes	MT	350000	85695
Coated Pipes	000 Sq. Mtrs	1650	123
Generation of Power using Windmills (other than for captive consumption)	‘000 Units	27300	15644

GENERAL INFORMATION

No. of Employees :

12000 (approximately)

Bankers :

Ø Dena Bank

Ø Punjab National Bank

Ø State Bank of India, Ahmedabad 380013, Gujarat

Ø IDBI Limited

Ø ICICI Bank Limited

Facilities :

(Rs in millions)

SECURED LOANS	31.03.2011	31.03.2010
Term Loans : Banks
Rupee Term Loans	0.000	58.329
External (Foreign) Commercial Borrowing	769.919	883.397
Working Capital Facilities from Banks
In Rupee	299.442	256.706
In Foreign Currency	903.453	1506.562
Total	1972.814	2704.994

NOTE- 01

(a) Rupee term loan of Rs. Nil from Bank of Maharashtra, of Rs. Nil from Syndicate Bank and External (Foreign) Commercial Borrowing of Rs. 23.699 millions from ICICI Bank (UK) Limited, are secured by first charge on the Company’s entire immovable and movable properties situated at Survey Nos. 769, 780 and 787, Village Indrad, Chhatral, Taluka, Kadi, District Mehsana and Survey No. 474, Village Bhimasar, Taluka Anjar, District Kutch. The said loans are further secured by second charge on inventories and book debts and personal guarantees of some of the Directors of the Company.

(b) External (Foreign) Commercial Borrowing of Rs. 385.100 millions from ICICI Bank, Hong Kong branch is secured by an exclusive charge over all the 8 windmills along with related equipments/ machinery situated at Moti Sindholi, Kutch, Gujarat and personal guarantee of one of the directors of the Company.

(c) External (Foreign) Commercial Borrowing of Rs. 361.120 millions from ICICI Bank, Hong Kong branch is secured by an exclusive charge over movable assets in respect of 3 Layer PE Coating Line and Offline Welding and Finishing Lines for HSAW plant situated at Survey No. 474, Village Bhimasar, Taluka Anjar, District Kutch.

NOTE -02

Working Capital Facilities from State Bank of India, Punjab National Bank, Dena Bank, ICICI Bank Limited and Industrial Development Bank of India Limited are secured by :

i) Hypothecation of Inventories, Books debts, all other movables

ii) Second charge on Fixed Assets of the Company except

a) 8 wind mills along with related equipments/ machinery situated at Moti Sindholi, Kutch, Gujarat and

b) movable assets in respect of 3Layer PE Coating Line and Offline Welding and Finishing Lines for HSAW plant situated at Survey No.474, Village Bhimasar, Taluka Anjar, District Kutch

iii) Personal guarantees of some of the Directors of the Company

iv) Joint equitable mortgage of all immovable properties held as free-hold and leasehold lands of the Company, except leasehold land related to 8 wind mills situated at Moti Sindholi, Kutch and 3 Layer PE Coating Line and Offline Welding and Finishing Lines for HSAW plant situated at Survey No.474, Village Bhimasar, Taluka Anjar, District Kutch.

NOTE -03

Additional Working Capital Facilities of Rs. 844.948 millions from ICICI Bank Limited are secured by

i) Hypothecation of Inventories, Books debts, all other movables by way of subservient charge

ii) Personal guarantee of one of the Directors of the Company

UNSECURED LOANS	31.03.2011	31.03.2010
Short Terms Loans from :
Bodies Corporate	6.420	20.764
Director	0.000	0.760
Banks	577.365	474.947
Total	583.785	496.471

Banking Relations :

--

Auditors :

Name :

Mehta Lodha and Company

(Chartered Accountants)

Address :

63 Hirabhai Market, Diwan Ballubhai Road, Ahmedabad – 380 022, Gujarat, India

Associates/Subsidiaries :

v Ratnamani Food Products Private Limited

v Ratnamani Marketing Private Limited

CAPITAL STRUCTURE

AS ON 18.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.2/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46415609	Equity Shares	Rs.2/- each	Rs.92.831 millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs. 2/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46374959	Equity Shares	Rs. 2/- each	Rs. 92.750 millions

NOTES:-

- Out of the above shares, 1,53,51,000 Equity Shares of Rs. 2/- each were allotted as fully paid up by way of Bonus Shares by capitalizing General Reserve.

- Out of the above shares, 1,23,00,665 Equity Shares of Rs. 2/- each were allotted as fully paid up for consideration other than cash, on amalgamation.

- During the year, the Company has allotted 431575 Equity Shares of Rs. 2/- each under Employees Stock Option Scheme, 2006.

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		92.750	91.887	90.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4256.631	3524.771	2752.529
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4349.381	3616.658	2842.529
LOAN FUNDS
1] Secured Loans		1972.814	2704.994	1272.498
2] Unsecured Loans		583.785	496.471	634.141
TOTAL BORROWING		2556.599	3201.465	1906.639
DEFERRED TAX LIABILITIES		536.819	580.940	535.546
Employee Stock options outstanding		20.476	30.575	39.487
TOTAL		7463.275	7429.638	5324.201
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3486.208	3599.396	3658.752
Capital work-in-progress		121.789	29.712	199.762
INVESTMENT		70.089	500.493	0.070
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3518.056	1675.677	1010.008
	Sundry Debtors	1640.408	1663.088	1230.557
	Cash & Bank Balances	474.123	243.016	521.142
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	518.054	814.253	528.359
Total Current Assets		6150.641	4396.034	3290.066
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1963.264	739.947	1485.084
	Current Liabilities	248.285	135.020	187.028
	Provisions	153.903	221.030	152.337
Total Current Liabilities		2365.452	1095.997	1824.449
Net Current Assets		3785.189	3300.037	1465.617
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7463.275	7429.638	5324.201

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales Turnover	8002.522	8368.623	9391.588
		Wind Mill income	119.949	150.886	160.462
		Other Income	24.221	14.829	14.243
		TOTAL (A)	8146.692	8534.338	9566.293
Less	EXPENSES
		Raw Material Consumed	5281.938	5662.685	6298.188
		Salaries, Wages, Bonus, etc.	492.583	474.103	383.041
		Other Expenditure	798.108	707.483	1320.912
		TOTAL (B)	6572.629	6844.271	8002.141
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1574.063	1690.067	1564.152
Less	FINANCIAL EXPENSES (D)		46.666	17.498	167.247
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1527.397	1672.569	1396.905
Less/ Add	DEPRECIATION/ AMORTISATION (F)		399.946	368.823	297.230
	PROFIT BEFORE TAX (E-F) (G)		1127.451	1303.746	1099.675
Less	TAX (H)		295.716	489.475	387.642
	PROFIT AFTER TAX (G-H) (I)		831.735	814.271	712.033
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		521.746	325.729	208.462
Less	APPROPRIATIONS
		Transfer to General Reserve	500.000	500.000	500.000
		Proposed Dividend	115.938	101.076	81.000
		Tax on Dividend	18.808	17.178	13.766
	BALANCE CARRIED TO THE B/S		718.735	521.746	325.729
	IMPORTS
		Raw Materials	4507.351	3267.929	2620.335
		Stores & Spares	15.809	106.741	62.366
		Capital Goods	214.559	85.081	573.765
	TOTAL IMPORTS		4737.719	3459.751	3256.466
	Earnings Per Share (Rs.)		17.98	18.00	15.82

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	30.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2895.220	3088.300	2807.130
Total Expenditure	2365.370	2615.340	2390.130
PBIDT (Excl OI)	529.850	472.960	417.000
Other Income	17.010	15.330	6.860
Operating Profit	546.860	488.290	423.860
Interest	58.540	41.090	32.360
Exceptional Items	0.000	0.000	0.000
PBDT	488.320	447.200	391.500
Depreciation	101.980	103.180	109.870
Profit Before Tax	386.340	344.020	281.630
Tax	116.280	109.350	83.260
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	270.060	234.670	198.370
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	270.060	234.670	198.370

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.20	9.54	7.44
Net Profit Margin (PBT/Sales)	(%)	14.08	15.57	11.71
Return on Total Assets (PBT/Total Assets)	(%)	11.69	16.30	15.38
Return on Investment (ROI) (PBT/Networth)		0.25	0.36	0.38
Debt Equity Ratio (Total Liability/Networth)		1.25	1.35	1.31
Current Ratio (Current Asset/Current Liability)		2.60	4.01	1.80

LOCAL AGENCY FURTHER INFORMATION

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
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 three years	Yes
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	--
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	No

PROFILE

Subject is an India-based company. The Company is engaged in the business of steel tubes and pipes, and generation of power by windmills. The Company’s manufacturing facilities produces a range of stainless steel welded/seamless tubes and pipes, and carbon steel welded pipes. It caters to the oil and gas, refineries, petrochemicals, process industries, power plants and water distribution industries. The products of the Company include high frequency welded (HFW) pipes, submerged arc welded (SAW) pipes, seamless tubes and pipes, welded tubes and pipes, and electric fusion welded. As at March 31, 2010, the Company’s installed capacity of stainless steel tubes and pipes was at 21,900 metric tons (M.T.). As at March 31, 2010, the Company’s installed capacity of carbon steel pipes was at 350,000 (M.T.). As at March 31, 2010, the Company’s installed capacity of generation of power using wind mills was at 27,300 units. For the nine months ended 30 September 2010, subject revenues increased 5% to RS5.66B. Net income decreased 4% to RS549M. Revenues reflect an increase in an income from Steel Tubes and Pipes division. Net income was offset by an increase in consumption of raw materials, the presence of purchase of traded goods, increased employees cost and an increase in depreciation charges.

REVIEW OF OPERATIONS:

A. GENERAL:

The year 2010 witnessed revival in the economies, both domestic as well as global. Their country witnessed a strong GDP growth with a positive outlook. However, as the Company caters to the oil and gas and the power sectors primarily, where demand pick up during the first half of the year under reviews was not very good, the performance of the Company in terms of numbers has not been very positive. The major decisions regarding investment in infrastructure namely oil and gas and power were taken in second quarter onwards resulting into the finalization of orders in the beginning of the third quarter onwards. As a result, inspite of having the highest order booking in the history of the Company, the same could not get converted into dispatches due to the time required from order booking to dispatch.

B. FINANCIAL PERFORMANCE:

Despite a lower than expected performance in the first half due to slower finalization of project application pipes

and tubes orders from majority of the key customers, the Company could achieve net income from operations of

Rs. 8122.500 millions with a PBT of Rs. 1127.500 millions and PAT of Rs. 831.700 millions during the year under review compared to net income of Rs. 8519.500 millions with a PBT of Rs. 1303.700 millions and PAT of Rs. 814.300 millions during the previous financial year.

C. OPERATIONS:

During the year, there has been good domestic demand for project application pipes and tubes, both for Stainless Steel as well as Carbon Steel mainly from refineries and power projects and as a result, majority of the capacities have been utilized optimally. Looking to a good demand potential from power sector, the Company has undertaken project to increase the capacity of SS Condenser Tubes which will be commissioned during 2011-12. However, due to severe competition in the domestic market in HSAW Pipes segment and very thin margins as a result thereof, the Company could not utilize the capacities at optimum levels in the line pipe segment. Similarly, utilization of capacities in respect of some of the product segments of SS catering mainly to refinery sector overseas remained low as the demand is still to pick up in the global markets.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRIAL SCENARIO

The year 2009-10 was one of the toughest periods for manufacturing industries. This impacted the order booking

position during that year, impacting the performance of the Company mainly during first half of the year under review. However, the global and Indian economy in general have shown strong signs of revival, with Indian economy being amongst a few which has grown at a rate close to 8% during the last financial year and it is expected it will continue to grow at about 8% - 9% p.a in the current financial year also. Moreover, despite rising inflation and interest rates within India and growing concern about economic stability in Europe, adverse impact of tsunami on Japanese economy, the concerns about the real soundness of the Chinese economy and the risk of double dip recession/deflation in USA and fluctuating commodity prices, the continuous focus on investment in infrastructure mainly related to power and oil and gas pipe line network will help the Company in maintaning its scale of operations. The investment in infrastructure has helped the Company to build up a respectable order book position, the highest in the history of the Company so far. They expect investment in infrastructure projects to continue thus providing opportunities to the Indian pipe industry. For the Company, particularly the investment in oil and gas, power projects, refinery and petrochemicals, fertilisers, irrigation and water supply pipe lines offer good opportunities.

MARKETING SCENARIO

STAINLESS STEEL DIVISION

As in the past, the major revenue generated by Stainless Steel Division is coming from oil and gas, petrochemicals and refineries and power, with water desalination, chemicals, fertilizers, pharmaceutical and sugar sector also contributing significantly.

Oil and Gas / Petrochemical and Refineries Sector

This sector continues to suffer from lower capacity built up and high crude prices. The global demand is yet to pick up as the investment decisions for setting up of new refineries or expanding the existing ones and setting up of down stream petrochemical projects has not yet started. The slack economic conditions prevailing globally particularly in developed countries/nations like USA, Japan, Europe etc. has adversely affected flow of fresh investments in capacity built up or expansion. The Company is trying to look at market beyond the traditional one, i.e. Middle East and expand reach of its products. However the Investment in cross country pipe lines and distribution pipe lines in the country offer good oprtunities. In Middle East also, new investment in refineries and petrochemical is showing signs of pickup which will offer good opportunities to the Company.

Power Sector

This sector continues to remain buoyant within the country, for which the Company continues to remain one of the

preferred suppliers of high-end application Tubes and Pipes for majority of the projects coming up in the country.

Water Desalination

Though this sector looks very profitable as far as demand for the Company’s products is concerned, but this is a

sector of very high capital cost. They have not seen any significant investment being announced either within the

country or in Middle East. However, looking to the potential, the Company is gearing up internally so that as and when an opportunity arises, the Company is in a position to exploit the same fully.

Fertilizer

This sector also continues to be one with fundamentally very strong potential. However, this is an industry which depends on government polices and investment decisions. Inspite of very promising announcements, they still have to witness real investment flowing-in in capacity built up/ modernization of this sector. The Company has the capability to cater to major demand likely to be generated by the sector once investment starts happening.

Nuclear Power Plants

Though long term prospects from this sector are very promising, but because of the after effects of tsunami in Japan, they don’t foresee in near future any major investment decisions being taken. They are watching the situation and will take appropriate decisions when the right time approaches.

CARBON STEEL AND COATING

The market for CS line pipe for oil and gas, transport and distribution continues to suffer from excessive capacity in the domestic market, fierce competition by the major players and very low margins. The line pipe business is a

location based business as transport cost of large diameter pipes becomes the disadvantage to the manufacturers like the Company whose manufacturing set up is only in Western India, i.e. Gujarat.

The Company has been looking at global opportunities also in CS pipe sector and has been successful in getting

initial orders from Europe and South America. Other markets are also being explored in order to ensure that capacities are optimally booked.

FUTURE OUTLOOK AND OPPORTUNITIES

The Company continues to enjoy the leadership position amongst all the SS tubes/pipes manufacturing companies and also in very high-end application of CS pipes. It has also been recognized as one of the quality manufacturers of spiral/coating pipes for oil and gas sector and has executed orders from some of the very prestigious names in the industry. The need for continuous built up in power generation and need to ensure an equitable distribution in natural resources will ensure their Company as in a position to continue to utilize its capacities in respect of products which are used in very high-end applications.

FIXED ASSETS

• Goodwill
• Lease Hold Land
• Freehold Land
• Buildings
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Equipments

UNAUDITED FINANCIAL RESULTS FOR THE 2^ND QUARTER ENDED ON 30^TH SEPTEMBER, 2011

(Rs. in millions)

Sr. No.	Particulars	Quarter Ended 30.09.2011 (Unaudited)	Half Year Ended 30.09.2011 (Unaudited)
1.	Net Sales/Income from Operations	3088.298	5990.121
2	Expenditure
i	(Increase)/decrease in stock in trade and work-in Progress	(219.737)	(248.835)
ii	Consumption of raw materials	2163.784	4128.840
iii	Purchase of Traded Goods	1.047	3.670
iv	Employee Cost	160.953	287.866
v	Depreciation	103.177	205.153
vi	Other Expenditure	519.298	809.168
vii	Total Expenditure	2718.520	5185.862
3	Profit from Operations before Other Income and Interest	369.778	804.259
4	Other Income	15.332	25.737
5	Profit Before Interest	385.110	829.996
6	Interest	41.091	99.636
7	Profit before Tax	344.019	730.360
8	Tax Expenses (including current tax, deferred taxation, fringe benefit tax and prior period adjustments for the period)	109.351	225.633
9	Net Profit for the period	234.668	504.727
10	Paid- up Equity Share Capital (Face value of the share – Rs. 10)	92.750	92.750
11	Reserves excluding revaluation reserves (as per last audited balance sheet)	----	----
12	Basic and diluted Earnings per share for the period, for the year to date (not annualized) and for the previous year – Rs.	5.06	10.88
13	Public shareholding
a)	Number of Shares	19035886	19035886
b)	Percentage of Shareholding	41.05%	41.05%
14.	Promoters and promoter group shareholding
	a) Pledged/Encumbered
	- Number of Shares	400000	400000
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	1.46%	1.46%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	0.86%	0.86%
	b) Non Encumbered
	- Number of Shares	26939073	26939073
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	98.54%	98.54%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	58.09%	58.09%

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE 2^ND QUARTER ENDED ON 30^TH SEPTEMBER, 2011

(Rs. in millions)

Sl. No.	Particulars	Quarter Ended	Half Year Ended
		30/09/2011	30/09/2011
		(Unaudited)	(Unaudited)
1	Segment Revenue
	Steel Tubes and Pipes	3049.767	5892.000
	Windmills	38.531	98.121
	Total	3088.298	5990.121
	Less : Inter Segment Revenue (Net of Excise)	--	--
	Net Sales / Income from Operation	3088.298	5990.121
2	Segment Results
	Steel Tubes and Pipes	351.255	746.631
	Windmills	18.523	57.628
	Total	369.778	804.259
	Add :Interest and Dividend Income	15.332	25.737
	Less : Interest and Finance Charges	41.091	99.636
	Profit Before Tax	344.019	730.360
3	Capital Employed
	Steel Tubes and Pipes	7360.183	7360.183
	Windmills	825.725	825.725
	Unallocable	(3309.429)	(3309.429)
	Total	4876.479	4876.479

Notes:

1. The aforesaid results, as reviewed by the Audit Committee, were opproved by the Board of Directors in it’s meeting held on 10^th November, 2011.

2. Statement of Assets and Liabilities

(Rs. In Millions)

Particulars		30.09.2011 (Unaudited)
SHAREHOLDERS FUNDS
1] Share Capital		92.750
2] Share Application Money		1.895
3] Reserves & Surplus		4781.834
Loan Fund		2799.376
Deferred Tax		523.859
TOTAL		8199.714
FIXED ASSETS		3807.185
INVESTMENTS		0.075
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3145.667
	Sundry Debtors	1961.379
	Cash & Bank Balances	201.918
	Other Current Assets	0.000
	Loans & Advances	320.197
Total Current Assets		5629.161
Less : CURRENT LIABILITIES & PROVISIONS
	Liabilities	1158.547
	Provisions	78.160
Total Current Liabilities		1236.707
Net Current Assets		4392.454
TOTAL		8199.714

WEBSITE DETAILS

MILESTONES

1985 

Commenced production of Stainless Steel Welded Pipes and Seamless Tubes, as a twin small-scale units.

1991

Established facilities for manufacturing Stainless Steel Electric Fusion Welded [EFW] Pipes.

1993

Listed on Mumbai (BSE) and Ahmedabad Stock Exchange (ASE)

1995

Commenced production of Submerged Arc Welded [SAW] Pipes

1997

Received API 5L Monogramming License

1999

Commenced production of Stainless Steel Tubes for Automobile Exhaust Systems.

2000

First Mobile plant, for Narmada Canal Pipe Line Project under Government of Gujarat.

2001

Quality Management System accredited to ISO 9002 Under Lloyd’s Register Quality Assurance (LRQA).

Addition of API 2B Monogramming License

2002

AD 2000 - Merkblatt W 0 Certification Under RWTUV

Recognition as a well known Tube / Pipe Maker Under IBR

2003

• Pressure Equipment Directive [PED] Certification Under LRQA
• Approval from Nuclear Power Corporation of India Limited for the Supply of Critical Instrumentation Seamless Tubes & Primary Piping for Nuclear Reactors
• Up-gradation of ISO 9002 Certification to ISO 9001-2000 under LRQA

2004

• Delivered Duplex Stainless Steel Seamless Tubes as per SA 789 / UNS 31803 and UNS 32205
• Officially Implemented Safety, Health & Environment Policy [SHE]
• Enhancement of Current Capacity by establishing new manufacturing facilities @ Kutch, Gujarat

2005

Commenced manufacturing of Welded Cold Drawn Duplex Steel Tubes as per SA 789 / UNS 31803 and UNS 32205.

Board of Directors:

Ratnamani has a board comprising of eminent individuals from diverse fields. The board acts with autonomy and independence in exercising strategic supervision, discharging its fiduciary responsibilities, and in ensuring that the management observes the highest standards of ethics, transparency and disclosure.

Our Directors are experts in the diversified fields of engineering, human resource development, business strategy, finance and economics. They review all information relating to significant business decisions, including strategic and regulatory matters. Every member of the board, including the non-executive directors, has full access to any information related to the company.

Mr. Prakash Sanghvi - Chairman and Managing Director

Mr. Prakash Sanghvi has vast business experience in the metal industry. He leads the core team that is driving the company's growth and transformation from a company predominantly selling Tubes and Pipes to achieving its vision of becoming a technology-led global engineering company.

Mr. Sanghvi has played a vital role in the company's evolution. He has been the architect of the company's projects and expansion strategy. He has helped create new platforms of growth for Ratnamani increasing shareholder and societal value while decreasing the company's environmental footprint.

Mr. Jayanti Sanghvi - Whole Time Director

Mr. Jayanti Sanghvi is one of the key members of the core team responsible for creation and setting up of Development Centres, Resources, Staffing and Training, Facilities and Infrastructure Management and Administration.

Mr. Jayanti Sanghvi is constantly focused on process improvements for enhancing productivity.

Mr. Shanti Sanghvi - Whole Time Director

Mr. Shanti Sanghvi is a thought leader on marketing strategy and customer related issues in India, helping organization develop marketing strategies. He is stationed at Mumbai handling marketing activities.

Mr. D C Anjaria – Director

Mr. Anjaria is an independent non-executive Director on the Board of the company having stupendous experience in the field of international finance and corporate finance. Mr. Anjaria is an MBA from IIM, Ahmedabad and has worked with Citibank and UTI.

Dr. Vinodkumar Agrawal - Director

He is an independent non-Executive Director on the Board of the Company.

Mr. P M Mehta - Director

Mr. Mehta is an independent non-Executive Director on the Board of the Company . He is Mechanical Engineer by qualification, has mammoth experience in engineering industry, having spent his entire career in the leading engineering corporate. M/s. Larsen and Toubro. He was an Executive Director on Board of Larsen and Toubro. At the time of his retirement, he was in-charge of nine different business units located all over the country. He is extensively experienced in the area of modern technologies, and international businesses.

At the helm of the entire operations is the experience and able direction of the people who make it all happen. Ratnamani acknowledges their inspiring stewardship and indefatigable work.

PRESS RELEASE:

Ratnamani Metals and Tubes attractive bet for investors

21 Jul 2008, 0419 hrs IST, Santanu Mishra, ET Bureau

Crude oil prices have more than quadrupled in the past five years, and this has increased exploration and production (E and P) activities around the world. These activities have generated huge requirements for carbon steel pipes and stainless steel tubes.

Many domestic pipe makers are set to benefit from this trend. Ratnamani Metals and Tubes is one such player which manufactures pipes and an array of stainless steel tubes, used in industrial applications. The company’s strong financials, growth plans and diversification strategy make it a good investment bet at the current price level.

BUSINESS:

Ratnamani’s business can be categorised mainly into two segments — stainless steel tubes for industrial applications and carbon steel pipes. Stainless steel tubes are used by a number of industries like refineries, fertiliser, pharmaceutical and power plants (both thermal and nuclear), among others.

These are very critical applications and hence, require high quality levels. Ratnamani is a market leader in this segment, with a market share of close to 40%. The second line of business constitutes electric resistance welded (ERW) and submerged arc welded (SAW) pipes, which are used for oil and gas transportation.

Most of the company’s carbon steel capacities are currently fully utilised. The company’s strategy is to maintain a balance between the two lines of businesses, with each contributing around 50% towards its topline.

FINANCIALS:

Ratnamani has strong financials compared to its peers in the pipe industry. The company’s net sales have jumped 10-fold in the past five years, while its net profit has surged by more than 40 times over the same period. In fact, the company has never posted a loss in the past 14 years.

It ranks among the best within the pipe industry as far as the return on capital employed (RoCE), return on net worth (RoNW) and operating margins are concerned (refer to the adjacent table).

Ratnamani’s lower debt-to-equity ratio (close to 1) and higher interest coverage ratio (more than 8) enable it to leverage its balance sheet for future expansion plans. The company’s operating margin for FY08 shrunk by around 200 bps on account of Rs 270 millions mark-to-market notional forex hedging losses, which are not core to its operation. The management doesn’t expect any such losses for the current financial year.

GROWTH POTENTIAL:

The company plans to expand its capacity in modular phases. It plans to increase its horizontal SAW (HSAW) capacity by one lakh tonnes to two lakh tonnes by the end of the current financial year. Out of this, 150,000 tonnes of capacity will be commissioned by September this year, while the rest will come up by the end of FY09.

The company is also setting up a three-layer pipe coating line to provide a one-stop solution (coated pipe) to its customers. On the stainless steel tubes front, it plans to add 3,000 tonnes of capacity in the high-speed welded tubes segment, which will be commissioned by September ’08. These expansion plans will require a capex of Rs 900-1000 millions in the current financial year.

This will be funded through debt of Rs 200-300 millions, and the rest will come from internal accruals. The company has a current order book of close to 80% of its FY08 net sales. It will increase its order book, as and when its new capacities come up.

VALUATIONS:

Ratnamani has diversified its business risk by making products which are used in a wide range of industries. The company’s P/E and EV/EBITDA multiples are on the lower side compared to its peers. The effect of its expansion plans will be partly and fully visible in FY09 and FY10, respectively.

The company’s estimated EPS for FY09 and FY10 works out to Rs 128 and Rs 174, respectively. At the current price level of Rs 675, this translates into forward P/Es of 5.3 and 3.9, respectively. This provides a good upside potential for investors with a horizon of 2-3 years.

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.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.