MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	THE STATE TRADING CORPORATION OF INDIA LIMITED
Registered Office :	Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi-11001
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.05.1956
Com. Reg. No.:	55-002674
Capital Investment / Paid-up Capital :	Rs.600.000 millions
CIN No.: [Company Identification No.]	L74899DL1956GOI002674
TAN No.: [Tax Deduction & Collection Account No.]	DELT00171D
PAN No.: [Permanent Account No.]	AAACT0102F
Legal Form :	Public Limited Liability Company. The Company’s Share are Listed on Stock Exchanges Government of India Owned Company.
Line of Business :	Subject is the official canalizing agency for Exports and Imports for a number of products.
No. of Employees :	Approximately 864 (Included 536 Managers and 328 Staff)

RATING & COMMENTS

MIRA’s Rating :

A (57)

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 27270000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a government of India owned company. It is established company having good track record. There appears sharp dip in the profitability and liquidity profile is also deteriorating. However, trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered normal for business dealing at usual trade terms and condition.

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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.

Subject’s name has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corproate Office :	Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi – 110 001, India
Tel. No.:	91-11-23313177/ 23701010
Fax No.:	91-11-23701191/ 23701123/ 23462277
E-Mail :	co@stc.gov.in msd@stc.gov.in
Website :	www.stc.gov.in
Branch Offices :	Located at: Mumbai Kolkata Chennai Ahmedabad Bangalore Hyderabad Jalandhar Agra Bhopal Sub Branches located at: Cochin Gandhidham Guntur Jaipur Raipur Coimbatore

DIRECTORS

As on 31.03.2012

Name :	Shri N.K. Mathur
Designation :	Chairman and Managing Director
FUNCTIONAL DIRECTORS:
Name :	Shri M.M. Sharma
Designation :	Functional Directors
Date of Birth/Age :	10.06.1954
Qualification :	BA, LLB, PG Diploma in Industrial Relations and Personnel Management
Name :	Shri Khaleel Rahim
Designation :	Functional Directors
Date of Birth/Age :	14.12.1961
Qualification :	BE (Hons.) Mech. Engg.
PART-TIME OFFICIAL DIRECTORS (GOVERNMENT NOMINEES):
Name :	Dr. Rajan Katoch
Designation :	Director (Government Nominees)
Date of Birth/Age :	03.02.1956
Qualification :	BA (Economics), MA (Economics) and Ph. D (Economics)
Name :	Shri Madhusudan Prasad
Designation :	Director (Government Nominees)
Date of Birth/Age :	22.03.1956
Qualification :	BA (Economics) and MA (Economics)
Directorship held in other companies :	MMTC Limited
Name :	Mrs. Anita Agnihotri
Designation :	Director (Government Nominees)
Date of Birth/Age :	10.10.1956
Qualification :	Graduate and Post graduate in Art Econometrics from University of Kolkata and Art Development Economics from School of Development Studies, University of East Anglia United Kingdom.
Directorship held in other companies :	MMTC Limited, ITPO, National Textile Corporation Limited, and Jute Corporation of India Limited
PART-TIME NON-OFFICIAL DIRECTORS (INDEPENDENT DIRECTORS):
Name :	Prof. Ravindra H. Dholakia
Designation :	Part-Time Non-Official Directors
Name :	Shri Proshanto Banerjee
Designation :	Part-Time Non-Official Directors
Date of Birth/Age :	30.10.1947
Qualification :	B. Tech (Chemical Engg.), Master in Management
Directorship held in other companies :	West Bengal State Electricity Distribution Company Limited and Greater Kolkata Gas Supply Corporation Limited
Name :	Shri Naresh Dayal
Designation :	Part-Time Non-Official Directors
Name :	Shri Uday N. Abhyankar
Designation :	Part-Time Non-Official Directors
Date of Birth/Age :	21.11.1943
Qualification :	BA and MA Mathematics and Economics Tripos, Trinity College, Cambridge University, England
Name :	Shri S.C. Tripathi
Designation :	Part-Time Non-Official Directors
Date of Birth/Age :	01.01.1946
Qualification :	Master's Degree in Science (Physics - Spl. In Electronics) from Allahabad University, LLB, Diploma in Development (Cantab.), AIMA Diploma in Management.
Directorship held in other companies :	Indus Ind Bank Limited, Reliance Capital Asset Management Limited, IL and FS Infrastructure Corporation Limited, IL&FS Energy Development Corporation Limited, Shipping Corporation of India Limited, Gammon Infrastructure Projects Limited, Kailash Health Care Limited, and Samurdhank Motherson Finance Limited.
Name :	Shri S.C. Saraf
Designation :	Part-Time Non-Official Directors
Date of Birth/Age :	04.01.1962
Qualification :	FCA & DISA (ICAI), M.Com & LLB (Calcutta University).
Directorship held in other companies :	Resurgent India Limited National Buildings Construction Corporation Limited (NBCC)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	54,613,600	91.02
Sub Total	54,613,600	91.02
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	54,613,600	91.02
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1230	0.00
Insurance Companies	659530	1.10
Foreign Institutional Investors	755389	1.26
Sub Total	1416149	2.36
(2) Non-Institutions
Bodies Corporate	864938	1.44
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2887307	4.81
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	161926	0.27
Any Others (Specify)	56080	0.09
Trust & Foundation	2000	0.00
Non Resident Indians	54080	0.09
Sub Total	3970251	6.62
Total Public shareholding (B)	5386400	8.98
Total (A)+(B)	60000000	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)	60000000	100.00

BUSINESS DETAILS

Line of Business :

Subject is the official canalizing agency for Exports and Imports for a number of products.

Products :

Item Code No. (ITC Code)	Product Description
7108	Gold
2701	Hydrocarbon
7109	Silver

GENERAL INFORMATION

No. of Employees :

Approximately 864 (Included 536 Managers and 328 Staff)

Bankers :

State Bank of India, CAG Branch, Jawahar Vyapar Bhavan, Tolstoy Marg, New Delhi – 110 001, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From banks	3574.500	4122.800
Cash credit / Overdraft/ Demand Loan (Secured)	16422.900	10483.100
Packing credit (Pre-shipment / Post-shipment) (Secured)	0.000	574.600
Interest accrued and due on loans*	0.000	4.600
Total	19997.400	15185.100
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Unsecured	305.800	305.800
Total	305.800	305.800

Banking Relations :	--
Auditors :
Name :	Chandilok and Guliani Chartered Accountants
Address :	C-44, Nizamuddin East, New Delhi – 100 013, India
Tel. No.:	91-11-243539676/ 0860
Fax No.:	91-11-24530457
Subsidiary:	STCL Limited (Wholly Owned Subsidiary)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs.600.000 Millions

Details of Bonus Issue during the preceding five years :

3,00,00,000 equity shares having face value of Rs.10/- each alloted as fully paid by way of bonus shares by capitalization of General reserve during F.Y. 2007-08 in the ratio 1:1

Equity shares issued and subscribed do not enjoy any differential rights

Reconciliation of no. of shares :

Class of share capital	Opening as at 01.04.2011	Issued during the year	Shares bought back during the year	Closing as at 31.03.2012
Equity share of Rs.10/- each	60,000,000	-	-	60,000,000

Deatails of Share holders holding more than 5% shares as on 31.03.2012

S.No.	Name	No. of shares held	% of shares held
1.	Govt. of India	54,613,600	91.0227

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		600.000	600.000	600.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6219.800	6194.600	5839.430
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6819.800	6794.600	6439.430
LOAN FUNDS
1] Secured Loans		19997.400	15185.100	20277.514
2] Unsecured Loans		305.800	305.800	4401.006
TOTAL BORROWING		20303.200	15490.900	24678.520
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		27123.000	22285.500	31117.950
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		517.800	530.700	549.551
Capital work-in-progress		98.700	33.700	0.000
INVESTMENT		3.100	30.300	30.304
DEFERRED TAX ASSETS		730.100	658.200	734.053
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5437.100	13137.500	5670.127
	Sundry Debtors	42040.700	21638.000	66109.635
	Cash & Bank Balances	2263.400	7370.300	4868.274
	Other Current Assets	10316.700	26213.100	0.000
	Loans & Advances	3134.400	1756.100	3909.667
Total Current Assets		63192.300	70115.000	80557.703
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22233.600	32068.500	19781.590
	Other Current Liabilities	14150.600	15868.200	30203.877
	Provisions	1034.800	1145.700	768.194
Total Current Liabilities		37419.000	49082.400	50753.661
Net Current Assets		25773.300	21032.600	29804.042
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		27123.000	22285.500	31117.950

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	307731.00	204756.500	215086.536
		Other Income	3099.900	2202.600	8058.230
		TOTAL	310830.900	206959.100	223144.766
Less	EXPENSES
		Cost of material consumed	13.400	20.500	220206.847
		Purchase of Stock-in -Trade	298858.200	210213.400
		Changes in inventories of Finished Goods, Work in Progress & Stock in Trade	7701.800	(7473.200)
		Employee benefits expense	1005.300	1052.000
		Other expenses	517.800	481.700
		TOTAL	308096.500	204294.400	220206.847
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		2734.400	2664.700	2937.919
Less	FINANCIAL EXPENSES		2034.700	1775.300	1204.010
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		699.700	889.400	1733.909
Less/ Add	DEPRECIATION/ AMORTISATION		30.700	30.700	24.590
	PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX		669.000	858.700	-
Less	EXCEPTIONAL ITEMS		459.300	94.200	-
	PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX		209.700	764.500	-
Add	PRIOR PERIOD ADJUSTMENTS (NET)		(31.700)	31.800	-
	PROFIT BEFORE TAX		178.000	796.300	1709.319
Less	TAX		13.300	231.900	639.832
	PROFIT AFTER TAX (G-I) (J)		164.700	564.400	1069.487
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2024.749	1921.402	1497.810
	Transfer from Bonus Reserve		-	-	0.040
Less	APPROPRIATIONS
		Transfer to Bonus Reserve			0.011
		Interim Dividend	N.A	N.A	150.000
		Proposed Dividend			135.000
		Tax on Dividend			47.914
		Export Import Contingency Reserve			198.010
		Transfer to Exchange Fluctuation Reserve			0.000
		Transfer to General Reserve			115.000
	BALANCE CARRIED TO THE B/S		N.A	N.A	1921.402
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis*	3000.400	3766.800	14937.384
		Dispatch Money	0.000	7.800	0.000
		Others	34.200	49.400	1.008
	TOTAL EARNINGS		3034.600	3824.000	14938.392
	Earnings Per Share (Rs.)		2.74	9.41	17.82

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Net Sales	44049.300
Total Expenditure	43472.700
PBIDT (Excl OI)	576.600
Other Income	74.600
Operating Profit	651.200
Interest	458.900
Exceptional Items	(146.500)
PBDT	45.800
Depreciation	8.100
Profit Before Tax	37.700
Tax	10.200
Provisions and contingencies	0.000
Profit After Tax	27.500
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	27.500

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.05	0.27	0.38
Net Profit Margin (PBT/Sales)	(%)	0.06	0.39	0.73
Return on Total Assets (PBT/Total Assets}	(%)	0.28	1.13	1.71
Return on Investment (ROI) (PBT/Networth)		0.03	0.12	0.25
Debt Equity Ratio (Total Liability/Networth)		8.46	9.50	13.94
Current Ratio (Current Asset/Current Liability)		1.69	1.43	1.51

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	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 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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS AND BUSINESS PERFORMANCE

The Corporation achieved an all time high turnover of over Rs.300000.000 Millions during 2011-12 thereby exceeding the previous year performance by 52%. The Profit Before Tax during the year amounted to `18 Crore, which is lower than the previous year mainly on account of high interest costs and provisions/write-offs in certain cases. The higher turnover was the result of sustained efforts by the company in increasing its business in moderate risk areas.

FOREIGN EXCHANGE EARNINGS/OUTGO

The total foreign exchange earnings of the Corporation by way of exports, trade margins, etc. during the year amounted to Rs.3030.000 Millions while the foreign exchange outgo by way of imports and other expenses amounted to Rs.182350.000 Millions.

RECOGNITIONS EARNED

During the year, the Corporation earned a number of recognitions. These included :

- 'Very Good' rating by the Department of Public Enterprises in terms of MOU for the year 2010-11.

- 14th rank in terms of net sales among 208 PSUs as per Public Enterprises Survey: 2010-11 brought out by the Department of Public Enterprises.

- 32nd rank in terms of net sales among top 500 companies by Business Standard (Mar.'2012).

- 39th rank in terms of net sales among top 1000 companies by The Financial Express (Feb.'2012).

PERFORMANCE OF SUBSIDIARY COMPANY

STCL Limited (Formerly Spices Trading Corporation Limited)

STCL, the wholly owned subsidiary of STC based at Bangalore, is involved in trading of spices and other agricultural products.

In view of lack of funds and banking limits, its activities during 2011-12 remained confined mainly to participation in cardamom auctions, undertaking onion exports and supply of fertilizers to tobacco growers.

Annual Accounts of STCL for 2011-12 are under audit. As per the provisional unaudited accounts for 2011-12, STCL has a negative net worth of `1800 Crore, due to provisions made towards recoveries outstanding from its business associates and the accumulated interest thereon in merchanting trade transactions undertaken during 2007- 08 and earlier.

STC has not given any corporate guarantee to/on behalf of STCL and STC’s liability is limited to its investment (Rs.28.200 Millions) in the equity of STCL. Due to erosion of entire equity of STCL, provision for entire amount of `2.82 Crore has been made in the Books of Accounts of STC for the year 2011-12. As such, STC has no further liability for the losses of STCL.

BOARD OF DIRECTORS

Since the last AGM, Shri Madhusudan Prasad, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry was appointed as Part-time Official Director on the Board of STC vice Shri P.K. Chaudhery w.e.f. 12.01.2012. Smt. Anita Agnihotri, Additional Secretary and Financial Advisor, Ministry of Commerce was appointed as Part-time Official Director on the Board of STC vice Shri Rajan S. Katoch w.e.f. 30.05.2012. The Directors place on record their deep appreciation for the valuable contributions made by Shri P.K. Chaudhery and Shri Rajan S. Katoch during their tenures.

Shri N.K. Nirmal, Director (Finance) and Shri S.S. Roy Burman, Director (Marketing) ceased to be the Directors of the Corporation w.e.f. 12.12.2011 and 30.04.2012 respectively. The Directors place on record their deep appreciation for the valuable services rendered by them as member of the Board.

Since the last AGM, three new Independent Directors have been appointed on the Board of the Corporation. Shri S.C. Tripathi and Shri Uday N. Abhyankar joined the Board of STC w.e.f. 14.10.2011 and 10.10.2011 respectively while Shri S.C. Saraf joined w.e.f. 28.03.2012, as Part-time nonofficial (Independent) Directors.

The terms of appointment of Dr. (Smt.) B. Kinnera Murthy and Shri J.N. Shah as Part-time non-official (Independent) Directors expired on 07.12.2011 and 30.11.2011 respectively. However, both of them were re-appointed as Part-time non-official (Independent) Directors on the Board of STC w.e.f.18.04.2012.

Pursuant to the provisions of Section 255 and 256 of the Companies Act, 1956 and in terms of provisions of article 79 (2) of the Articles of Association of the Corporation, Shri Khaleel Rahim and Shri Proshanto Banerjee, Directors would retire by rotation at the ensuing Annual General Meeting (AGM) and being eligible, have offered themselves for re-appointment.

Brief resumes of all Directors seeking Appointment / Re- Appointment, as stipulated under Clause 49 of the Listing Agreement with the stock exchanges, are given in the notice convening the 56th Annual General Meeting of the Company, and form part of the Annual Report.

MANAGEMENT DISCUSSION and ANALYSIS REPORT

While the company has been reviewing the domestic and international economic environment regularly, more emphasis has been placed on making the analysis more comprehensive and form the basis for the key strategies and initiatives of STC. The economic forecasts provided below are not very rosy, yet, there are opportunities for growth:

WORLD ECONOMIC OVERVIEW

The world economy suffered major setbacks during 2011 leading to restriction of growth to only 3.9 percent as against a robust 5.3 percent in 2010.

Growth in the advanced economies remained hindered due to fiscal consolidation and bank leveraging and was confined to a meager 1.6 percent as against 3.2 percent in the preceding year. European growth slowed sharply, especially in the Euro zone, which went through another acute crisis, and grew by a moderate 1.5 percent during 2011. The Japanese earthquake, supply disruptions due to floods in Thailand and weaker global demand contracted growth in Japanese GDP to a negative 0.7 percent in 2011 as against a robust 4.4 percent in 2010.

Although the U.S. economy showed signs of improvement and expansion in the job market during 2011; fiscal uncertainty, weakness in the housing market and potential spillovers from Europe dragged its GDP growth down to 1.7 percent during 2011 from 3 percent in the previous year.

GDP growth rate of developing countries came down from 7.5 percent in 2010 to 6.2 percent in 2011 due to lower export growth mainly attributable to a weak demand from advanced economies. Activity across Asia slowed during the last quarter of 2011, reflecting both external and domestic developments. The effect of crises in Europe reflected in the weakness of Asia's exports to that region. In some other Asian economies, however, robust domestic demand helped offset the drag on export growth.

China grew at 9.2 percent in the year 2011 as against 10.4 percent in the preceding year, mainly due to overheated real estate sector and related activities. However, domestic demand in China remained resilient and led to strong investment and private consumption.

The CIS counties continued to grow strongly during the second half of 2011, supported by still-strong oil and commodity prices, a rebound in agricultural output in a number of economies viz. Armenia, Belarus, Kazakhstan, Russia following the drought in 2010, and strong domestic demand. The region, however, was affected by developments in the euro area. The global financial turmoil in late 2011 and the resulting flight of capital to safety contributed to significant outflows from Russia, a rise in Credit Default Swap spreads (particularly for Ukraine), and depreciation of a number of regional currencies, including the Russian rouble. The recession in the euro area resulted in weaker exports and a slowdown in industrial production in the region's larger economies.

The social unrest and geopolitical uncertainty in the Middle East and North Africa, further depressed the outlook for the region even as some economies rebuild after earlier conflicts. In other regions, however, developments have been more positive.

Major Commodity Trends

Oil prices remained high during 2011 due to supply disruptions in major oil-producing economies, especially Libya and other non OPEC countries. Crude oil price peaked to US$ 115 a barrel in mid-March 2012. In addition, geopolitical risks particularly in Islamic Republic of Iran boosted oil prices. As the markets absorbed these disruptions and supply conditions improved, prices began to come under additional downward pressure from slowing demand and uncertainty about the near-term economic and financial outlook.

Drought and heavy rains affected most of the agriculture markets pushing prices to annual highs in early 2011. However, prices for most agricultural commodities moderated during the year under review. The agriculture price index ended the year at 19 percent down compared to their early-2011 peaks.

Metal prices strengthened and reached their highs in the first quarter of 2011 due to strong demand in China, lower stocks, production cutbacks and various supply disruptions but came down subsequently with the index falling down 25 percent by the year end due to concerns about global growth emanating from the debt crisis and deliberate lowering down of metal imports by China.

During 2011, world trade volumes expanded by 5.8 percent as against 12.9 percent in the previous year. The sharp deceleration in growth was attributable to after-shocks of global economic slowdown, including the European sovereign debt crises. While exports of advanced economies increased by 5.3 percent as against 12.2 percent in the previous year, exports of emerging and developed economies increased by 6.7 percent as compared to 14.7 percent in the previous year.

OVERVIEW OF INDIAN ECONOMY

The Indian economy managed to grow by 6.5 percent during 2011-12 despite being plagued with deteriorating current account deficit, increasing inflation rate and a declining rupee. However, the growth was significantly lower than 8.4 percent achieved in the previous year.

Though agriculture and services continued to perform well, the slowdown in GDP Growth was attributed mainly to weakening industrial growth. The agriculture and allied services sector grew by 2.8 percent in 2011-12 compared to 7 percent in 2010-11 with foodgrain production estimated at a record 250 million tonnes, higher than the previous highest output of 244.8 million tonnes last year. The services sector recorded a marginal lower growth of 8.9 percent in 2011-12 as against 9.3 percent achieved in the previous year. The industry sector grew at a meager 3.4 percent as against a robust 7.2 percent in 2010-11. The largest decline in industry sector was seen in mining sector which registered a negative growth rate of 0.9 percent during 2011-12 for the first time in three decades. Production in the mining sector experienced a contraction, particularly in coal, crude oil and natural gas. Moreover, restrictions imposed on iron ore production and movement in some parts of the country also resulted in lower output.

Inflation as measured by the wholesale price index remained high for most part of the year but subdued towards the end of the year. Measures to tighten the monetary policy were taken by the Reserve Bank of India to control inflation and curb inflationary tendencies. During 2011-12, the Foreign Direct Investment into India was around $ 36.50 billion (around `1.82 lakh Crore) as compared to $ 27 billion in the previous year.

During 2011-12, exports grew at 23.5 percent to reach US$ 304 billion with petroleum and oil products, gems and jewellery, engineering goods, cotton fabrics, made ups, electronics, readymade garments, and drugs being the major items of exports. Exports during the first half of 2011- 12 had witnessed a high growth of 40.6 per cent. However, growth in exports decelerated thereafter as a result of the crisis originating in the periphery and spreading to the core economies in the euro area. Imports stood at US$ 479 billion registering a growth of 29.4 per cent. Thus, trade deficit amounted to $175 billion or 9.3 per cent of GDP. During the year, UAE emerged as India's largest trading partner, followed by China.

India's foreign exchange reserves, after reaching an all time high of US$ 322 billion in August 2011, declined to US$ 294 billion at the end of March 2012. The decline in reserves was partly due to intervention by the RBI to stem the slide of the rupee against the US dollar. During 2011-12, the rupee after reaching a peak of 43.94 per US dollar in July 2011 touched a low of 54.23 per US dollar in December 2011 and closed at 50 per US dollar as on 31 March 2012.

SEGMENT-WISE PERFORMANCE and OUTLOOK

During the year, the Corporation explored a number of new areas of business e.g. stock & sale of soya seed, mustard seed, desi chana and retail sale of STC brand tea in domestic market and effected increases in business of many existing areas of trade.

Exports

During the year, STC effected exports worth Rs.3440.000 Millions.

Iron Ore was the single largest value export item during the year. As a result of the thrust laid by the Corporation on export of iron ore, its exports increased from `46 Crore in 2009-10 and `140 Crore in 2010-11 to reach an all time high of Rs.1950.000 Millions in 2011-12. However, prospects of exports during 2012-13 are not very bright in view of high export duty and regulatory issues like restrictions on mining and transportation of iron ore imposed by various state governments.

During 2011-12, the Corporation exported over 25,500 tonnes of non-basmati rice valued at Rs.530.000 Millions under the World Food Programme (WFP). During 2012-13, STC shall also focus on new opportunities for export of non-basmati rice emerging from Iraq, Indonesia, Philippines and countries in West and Southern African region. With lifting of ban on exports of wheat and rice, the Corporation hopes to undertake significant exports of these items in the coming year.

During 2011-12, the Corporation exported castor oil amounting to Rs.490.000 Millions. Efforts are on to consolidate this business and include more suppliers and target new markets during 2012-13. STC has been regularly exporting maize for the last three years and exports worth Rs.340.000 Millions were made during 2011-12. With strong demand from Malaysia, Indonesia and other neighboring countries, efforts are being made to enhance exports of this item.

During 2011-12, the Corporation also exported other items such as molasses and manufactured products.

STC has been exporting molasses for last two years and with strong demand from Far-East countries like Korea, Indonesia and Vietnam as also from EU, STC is gearing up to increase its export of molasses from various load ports in India. With all quantitative restrictions on export of sugar having been removed, the Corporation has initiated discussions with various sugar suppliers for exports during 2012-13.

Imports

The Corporation attained an all time high import turnover of Rs.299610.000 Millions during 2011-12 as compared to Rs.189380.000 Millions in the previous year thereby registering an increase of 58%. The increase was contributed mainly by bullion, coal and fertilizers. Details of performance of major import items are as under:

Bullion

Despite stiff competition and wide fluctuation in the prices of bullion during the year, STC was able to effect highest ever imports of bullion resulting in a turnover of Rs.179050.000 Millions as compared to Rs.149640.000 Millions in the previous year. This became possible due to enlistment of new customers and new foreign suppliers of bullion and efficient servicing of the requirements of associates by way of custom clearance, price fixation, timely remittances and settlement of their accounts. The Corporation will continue bullion import business during 2012-13 as well.

Coal

During the year, STC successfully executed order for import of 12 million MTs of thermal coal, implementation of which had been initiated towards the end of the financial year 2010-11. This resulted in sales of Rs.98850.000 Millions during the year as against only Rs.6730.000 Millions in the previous year. During 2012-13, the Corporation hopes to undertake supply of coal to a number of state electricity boards, power generation companies and steel production units. Simultaneously, efforts shall be made to enlarge the supply base.

Urea

The Corporation continued to undertake imports of urea on behalf of the Department of Fertilizers, Govt. of India and imported 5.6 lakh MT of urea resulting in sales worth Rs.13930.000 Millions. The Corporation also imported technical grade urea valuing Rs.55.000 Millions.

Edible Oils

During the year, edible oil market remained highly volatile. The Corporation continued to import edible oils both on

commercial account as well as for the state governments for distribution to the weaker sections under Public Distribution System (PDS). Overall imports of edible oils amounted to Rs.4840.000 Millions.

The Corporation is making efforts to identify more oil processors and meet their import/domestic demand of edible oils and also increase imports for state governments for PDS distribution during 2012-13. Possibilities are also being explored to import other oils like Sunflower / Rapeseed / Canola / Palm Fatty Acid Distillates and acid oils.

Pulses

STC sold pulses worth `205 Crore imported on behalf of Government of India under its subsidy schemes including

imports for state governments for distribution to the weaker sections of the society under PDS.

Equipments/Instruments/Ballistics

STC achieved an overall turnover of about Rs.220.000 Millions by way of imports of equipments, instruments and ballistic items during the year. This included import of two Hydraulic Platforms for U.P. Fire Service Department. Special focus on modernization of police forces by the Government of India and projects executed for J&K Govt. provided opportunity for doing higher business than in the earlier years.

For 2012-13, the Corporation has identified a number of thrust products e.g. hydraulic platforms for State Fire Services, arms for State Police and Forest Departments, vehicle armouring solutions and bullet proof jackets, snow cutting machines, tools and equipments for State Forensic Science Laboratories. Thus, the Corporation hopes to do substantial business by undertaking imports on behalf of State Governments.

Domestic sales

During the period, STC effected domestic sales worth Rs.1390.000 Millions. Major items of sale on domestic front were oils, seeds and oil meals, jute goods, coal and pulses.

During the year, a beginning was made in stock and sale of soyabean and mustard seeds which will be continued in 2012-13.

With a view to gaining foothold in the domestic tea market, the Corporation has started opening retail outlets in southern India for sale of own brand "STC Tea" in 250 gms packs initially. This yielded sales worth about Rs.50.000 Millions during the year. It is proposed to extend operations to more cities in the near future. Simultaneously, efforts are being made to penetrate into export markets, namely, Turkey, Iran, Pakistan and Iraq.

PROFITABILITY

During the period under review, STC earned a Profit Before Tax (PBT) of Rs.180.000 Millions. The profitability of the Corporation remained under strain due to thin trading margins, high interest costs and provisioning/write-offs in certain cases.

KEY INITIATIVES

During the year, the Corporation took a number of initiatives to increase its business in near as well as long

term. Some of the major initiatives are indicated below: -

-A beginning was made, though on a modest scale, in stock & sale of items like soyabean, mustard seeds and desi chana whereby small quantities of these items were purchased, stocked and then successfully sold back in the domestic market taking advantage of the seasonality in prices.

- With a view to establishing itself in the domestic tea market, retail outlets were opened in many parts of southern India for sale of own brand "STC Tea" in consumer packs. This initiative helps a host of small tea growers and also gives a sustainable revenue stream for STC through institutional sales. Exports will further enhance STC's performance in this segment. This is part of building a longer term business strategy as opposed to being completely dependent on fluctuating trading markets.

- A Bullion Dealing Room has been set up at STC's corporate office for online price fixation of bullion and timely remittances and settlement of associates' accounts. As servicing is important in this business and margins are low, faster clearances will ensure better business returns through customer satisfaction and faster realization of dues.

- With a view to improving efficiency and to facilitate online monitoring of offset programmes, a web-based e-portal was developed in association with Boeing, thereby making the entire process involving inflow / outflow of data, documents and other communications from / to the offset partners virtually paperless.

- Greater liaison was developed with state governments resulting in enhanced procurements on their behalf of items like pulses, edible oil, and a number of equipments such as Fire Hydraulic Platform, Snow Groomer Machine, Braille Printer, which are new additions to the trade portfolio of STC.

- STC has embarked upon professionalization in its trading initiatives by reviewing, introducing and fine tuning various policies, procedures and guidelines to make the systems of due diligence and risk mitigation more effective.

INTERNAL CONTROLS AND PROCEDURES

STC has a sound system of internal controls which ensures compliance with statutory requirements, regulations and various policies and guidelines of the Corporation. Besides, Statutory Audit and Audit by the C&AG, regular and exhaustive internal audits are conducted through professional agencies in close coordination with STC's Internal Audit Division to ensure that a proper system of checks and balances is in place in the Corporation totake

care that all its assets are safeguarded and protected against any possible loss and all the transactions are authorized, recorded and reported properly.

Internal Audit is conducted as per the Accounting Standards and Rules/policies formulated by the Corporation from time to time. Annual Audit Programme is approved by the Audit Committee of Directors. The observations/ recommendations made by the auditing agencies are complied timely. The quarterly financial statements as also

summary of the findings of internal, external and Government audit are reported to Management Audit Committee and the Audit Committee of Directors along with a report on compliance of directions issued in the past.

The Corporation has a well-defined Delegation of Powers (DoP) in place, which lays down the powers for different

managerial levels and Committees to facilitate faster commercial decisions. The systems and procedures laid down by the Corporation ensure maximum transparency in all commercial deals. The Corporation has a full-fledged Vigilance Division to oversee that the guidelines of the Government and the rules/procedures of the company are strictly adhered to/implemented in all matters.

During the year, the Vigilance Division conducted inspection of Branch Offices of the Corporation and various aspects were brought to the attention of top Management for taking corrective / preventive action. Over the past three

- four years, several steps were taken to streamline branches on the basis of vigilance and internal audit reports and these actions have resulted in branches becoming more compliant with professional procedures and practices.

THE WAY FORWARD

The Corporation has already started making best efforts to further improve its performance during 2012-13, in terms of business and increased profitability. An annual Business and Action Plan has been prepared. The Corporation shall endeavour to take advantage of higher domestic availability of food grains during the year and has already initiated the process of registration of grain traders for this purpose. It also plans to expand import operations for state governments and their entities in items like edible oils, pulses, equipment, instruments, etc. Similarly, tea operations shall be enlarged by taking another processing unit on lease, opening more retail centers for domestic sale of STC Brand tea and identifying new overseas buyers for exports. In addition, the Corporation also proposes to consolidate requirements of various cashew processing units for importing raw cashew in bulk on their behalf and participate in tenders floated by SEBs, power generation companies, and steel production units, etc. Besides, renewed thrust shall continue to be laid on identification of new customers and suppliers.

While some of the identified strategies have already been implemented, others are also at various stages of implementation. The Corporation hopes to further improve its turnover and profitability in the coming year.

CONTINGENT LIABILITIES

Contingent Liabilities not provided for	31.03.2012
Claims against the company not acknowledged as debt	10816.300
Guarantees	5444.900
Other money for which company is contingently liable	16653.800

STATEMENT OS STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30.06.2012

(Rs. In Millions)

Particulars	30.06.2012
1. a) Net Sales/Income From Operation	42625.500
b) Other Trade Income	1423.800
Total Income (a) + (b)	44049.300
2. Expenditure
a) Cost of Materials consumed	0.300
b) Purchase of Stock in Trade	40136.100
c) Changes in Stock in Trade work in Progress and Stock in trade	3016.400
d) Employees Benefits Expenses	229.000
e) Depreciation and Amortisation expenses	8.100
F) Other Expenses	90.900
Total	43480.800
3. Profit/ (Loss) from operations before other income, finance costs and exceptional items (1-2 )	568.500
4. Other Income	74.600
5. Profit/ (Loss) from Ordinary activities before finance costs and exceptional items ( 3+4 )	643.100
6. Finance Costs	458.900
7. Profit/ (Loss) from Ordinary activities after finance costs and exceptional items ( 5-6 )	184.200
8. Exceptional items	146.500
9. Profit (+)/Loss(-) from Ordinary Activities before Tax ( 7-8 )	37.700
10. Tax Expenses
- Current Tax	15.00
- Income tax relating to earlier years	(4.800)
11. Net Profit (+)/Loss(-) from Ordinary Activities after Tax ( 9-10 )	27.500
12. Extraordinary items (net of tax expenses Rs.)
13. Net Profit (+)/Loss(-) for the period (11-12)	27.500
14. Paid Up-Equity Share Capital (Face Value of Rs.10/- each)	60
15.Reserve Excluding, Revaluation Reserve as per balance of previous accounting year
16. Earnings per shares (EPS) (before extraordinary items)
A.) Basic	0.46
B) Diluted	0.46
16. Earnings per shares (EPS) (after extraordinary items)
A.) Basic	0.46
B) Diluted	0.46
17. Public Shareholdings
- No. of Shares	5386400
- Percentage of Shareholding	8.977
18. Promoter and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	-
- Percentage of Shares (as a % of total shareholding of promoter and promoter group)	-
- Percentage of Shares (as a % of total share capital of the Company)	-
b) Non-Encumbered
- Number of Shares	54613600
- Percentage of shares (as a % of total shareholding of promoter and promoter group)	100
- Percentage of shares (as a % of total share capital of the company)	91.023

SEGMENT WISE REVENUE, RESULTED AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	3 months ended 30.06.2012 (Unaudited)
1. Segment revenue (Net Sales from each segment)
a) Export	127.100
b) Import	42299.300
c) Domestic	199.100
Total	42625.500
Less: Inter-segment revenues	-
Net Sales	42625.500
2. Segment results (Profit)/ Loss before tax and interest from each segment
a) Export	1.500
b) Import	158.200
c) Domestic	2.600
Total	162.300
Less: i) Interest	458.900
ii) Other unallocable expenditure net off unallocable income	(334.300)
Profit Before Tax
3. Capital Employed (Segment assets – Segment Liabilities)
a) Export	-
b) Import	-
c) Domestic	-
d) Unallocated	-

Note:

1) The Financial Results for the Quarter ended 30^th June,2012 were reviewed by the committee and taken on record by the Board of Directors in its meeting held on 13^th August, 2012

2) Figures for quarter ended March 31,2012 are the balancing figures between the audited in respect of the full Financial year and published year to date figures up to the third quarter of the relevant financial year.

3) Limited Review as per clause 41 of the listing agreement with SEBI has been carried out by the statutory Auditors of the company

4) Deferred Tax Liability and Segment-wise capital employed will be considered at the end of accounting year.

5) Figures of the previous period have been regrouped/ rearranged to make them comparable with those of the current period wherever necessary.

FIXED ASSETS:

· Land

· Building

· Plant and Equipment

· Furniture and Fixtures

· Vehicle

· Air conditioners and Office Equipment

· Railway sidings

· Computer, Data Processor and Communication Equipment

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 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 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 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.52.70
UK Pound	1	Rs.85.71.
Euro	1	Rs.68.15

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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.