MIRA INFORM REPORT

Report Date :

18.10.2012

IDENTIFICATION DETAILS

Name :	SURYA ROSHNI LIMITED [w.e.f. 14.12.1990]
Formerly Known As :	PRAKASH TUBES LIMITED
Registered Office :	Prakash Nagar, Sankhol, Bahadurgarh – 124 507, Haryana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.10.1973
Com. Reg. No.:	05-007543
Capital Investment / Paid-up Capital :	Rs.438.313 Millions
CIN No.: [Company Identification No.]	L31501HR1973PLC007543
TAN No.: [Tax Deduction & Collection Account No.]	MRTS01773C/DELS06442C
PAN No.: [Permanent Account No.]	AAACS3558C
Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Steel Tubes and Pipes, Lamps, Cold Rolled Strips/ Sheets, etc.
No. of Employees :	3954 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 27300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some in the profitability of the company. However, general financial position of the company is good. 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A2+ [Short Term Bank Facilities]
Rating Explanation	Strong degree of safety it carry low credit risk.
Date	10.10.2012

Rating Agency Name	CARE
Rating	A – [Long Term Bank Facilities]
Rating Explanation	Adequate degree of safety it carry low credit risk.
Date	10.10.2012

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.

LOCATIONS

Registered Office/ Works-Steel Division :

Prakash Nagar, Sankhol, Bahadurgarh – 124 507, Haryana, India

Tel No.:

Not Available

Fax No.:

Not Available

E-Mail :

surya_roshni@satyam.net.in

Srlkash@ndf.vsnl.net.in

Surya@sroshni.com

Website :

http://www.suryaroshni.com

http://www.suryaroshnilighting.com

Head Office :

2^nd Floor, Padma Tower - 1, 8, Rajendra Place, New Delhi - 110 008, India

Tel. No.:

91-11-25810093/ 94/ 95/ 96

Fax No.:

91-11-25789560/ 41539762

E-Mail :

surya@sroshni.com

Factory :

WORKS LIGHTING DIVISION

7 K. M. Stone, Kashipur - Moradabad Road, Kashipur - 244 713, District Uhdam Singh Nagar, Uttar Pradesh

Tel. No. 91-5947-75117 / 195 / 124 / 110

Fax No. 91-5947-75185

J-7, 8 and 9, Malanpur Industrial Area, Malanpur, District Bhind, Madhya Pradesh

Tel. No. 91-7539-83554 / 82347 / 83348

Fax No. 91-7539-83483

E Mail : srlmlpr@gwr1.dot.net.in

Branch Office:

LOCATED AT:

Ahmedabad	Kanpur
Bangalore	Cochin
Mumbai	Chennai
Bhubaneshwar	Madurai
Kolkata	Nagpur
Chandigarh	Patna
Delhi	Pune
Ghaziabad (Branch and Centralised Godown)	Parwanoo
Goa	Raipur
Gwalior	Rohtak
Guwahati	Siliguri
Hyderabad	Varanasi
Himachal Pradesh	Jaipur
Indore	Jammu
Jabalpur	--

DIRECTORS

AS ON 31.03.2012

Name :	Mr. J. P. Agarwal
Designation :	Chairman and Managing Director
Name :	Mr. Aloke Sengupta
Designation :	Chairman and Managing Director
Name :	Mr. Ravinder Kumar Narang
Designation :	Director
Name :	Mr. K. K. Narula
Designation :	Director
Name :	Mr. B. B. Chadha
Designation :	Director
Name :	Mr. Vineet Garg
Designation :	Deputy Managing Director (Projects and Corporate Management)
Name :	Mr. Arvind Bansal
Designation :	Deputy Managing Director (Operations and Corporate Management)
Name :	Mr. Raju Bista
Designation :	Director (Corporate)
Name :	Ms. Tara Sankar Bhattacharya
Designation :	Chairman and Managing Director
Name :	Mr. Utpal Kumar Mukhopadhyay
Designation :	Chairman and Managing Director

KEY EXECUTIVES

Name :	Mr. B. B. Singal
Designation :	Vice President and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2517839	5.74
Bodies Corporate	25538343	58.27
Sub Total	28056182	64.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	28056182	64.01
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1381	0.00
Financial Institutions / Banks	1528	0.00
Insurance Companies	3000	0.01
Foreign Institutional Investors	250	0.00
Sub Total	6159	0.01
(2) Non-Institutions
Bodies Corporate	9687293	22.10
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	5303292	12.10
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	369227	0.84
Any Others (Specify)	409097	0.93
NRIs/OCBs	174772	0.40
Clearing Members	234025	0.53
Trusts	300	0.00
Sub Total	15768909	35.98
Total Public shareholding (B)	15775068	35.99
Total (A)+(B)	43831250	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	43831250	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Tubes and Pipes, Lamps, Cold Rolled Strips/ Sheets, etc.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Steel Tubes and Pipes	730410.01
Lamps	853900
Cold Rolled Strips	720922

PRODUCTION STATUS [AS ON 31.03.2011]

PARTICULARS	Unit	Installed Capacity	Actual Production
Steel division
Pipes / Tubes	MT	Not yet assessed	231803
Cold Rolled Strips / Sheets	MT	Not yet assessed	78867
Lighting division
GLS Lamps	Million Nos.	187.000	179.319
Fluorescent Tube Lamps	Million Nos.	62.800	50.471
Tubular Glass Shells	Million Nos.	90.000	76.782
Glass Shells for GLS Lamps	Million Nos.	576.900	417.704
Filament	Million Nos.	303.000	291.361
Cap-GLS Lamps	Million Nos.	325.000	277.225
Lead Glass Tubings	MT	3400.000	2962.171
HPSV / HPMV Lamps	Nos.	1800000	691475
CFL	Million Nos.	66.000	37.445
Tuber	Million Nos.	66.000	39.497
PCB	Million Nos.	51.600	19.594
CFL Shell	M.T.	5000.000	3636.833
PVC Products
PVC Fitting	M.T.	2000.000	79.467
PVC Pipe	M.T.	17500.000	1260.483

GENERAL INFORMATION

No. of Employees :

3954 [Approximately]

Bankers :

• State Bank of India
• IDBI Bank Limited
• Punjab National Bank
• Bank of Baroda
• Standard Chartered
• Punjab National Bank
• ICICI Bank
• State Bank of Patiala

Facilities :

SECURED LOAN	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loan
From Banks [Term Loans from Banks secured by deposit of title deeds relating to immovable assets by hypothecation of all company's movable assets. of the company and further secured]	2426.315	2190.593
Working Capital Loans From Banks [Working Capital Loans from Banks are secured against hypothecation of present and future stock of raw material, stock in process, finished goods, spare and stores, book debts etc., guaranteed by managing director of the company and further secured by way of second charge on the company's Fixed Assets.]	3900.639	3285.794
TOTAL	6326.954	5476.387
UNSECURED LOAN	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loans
From Banks	549.685	499.681
Deposits	571.604	686.257
TOTAL	1121.289	1185.938

Banking Relations :	--
Statutory Auditors :
Name :	Sastry K. Anandam and Company Chartered Accountants
Cost Auditors :
Name :	R.J. Goel and Company [Lighting Division] Chartered Accountants H. R. Singal [Steel Division] Chartered Accountants
Subsidiaries :	Surya Global Steel Tubes Limited
Others Companies :	Surya Global Steel and Gen Power Limited Surya Global Cement Limited Surya Global Infrastructure Limited Surya Roadlink and Infra Limited Surya Vijay Nagar Steel and Power Limited Surya Vijay Nagar Cement Limited Surya Chhatisgarh Steel and Power Limited Surya Chhatisgarh Power Limited Surya Gujarat Power Limited Surya Shimoga Lighting Limited Surya Shimoga Steel Pipes Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
49800000	Equity Shares	Rs.10/- each	Rs.498.000 Millions
620000	Preferences Shares	Rs.100/- each	Rs.62.000 Millions
	TOTAL		Rs.560.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43831250	Equity Shares	Rs.10/- each	Rs.438.313 Millions

NOTE:

Equity Share Warrants	As on 31.03.2012		As on 31.03.2011
	No. of Shares	Rs. in Millions	No. of Shares	Rs. in Millions
Share Warrants of Rs. 27.75/- paid-up exercisable on or before 29th May, 2012 for one equity share of Rs. 10/- each fully paid-up @ Rs. 111/- per share	5475000	151.931	5475000	151.931

DISCLOSURE PURSUANT TO NOTE NO. 6(A)(D) OF PART I OF SCHEDULE VI TO THE COMPANIES ACT, 1956

Particular	As on 31.03.2012		As on 31.03.2011
	Equity Shares	Preferences Shares	Equity Shares	Preferences Shares
Shares outstanding at the beginning of the year	43831250	--	43831250	--
Shares Issued during the year	--	--	--	--
Shares bought back during the year	--	--	--	--
Shares outstanding at the end of the year	43831250	--	43831250	--

DISCLOSURE PURSUANT TO NOTE NO. 6(A)(G) OF PART I OF SCHEDULE VI TO THE COMPANIES ACT, 1956

Name of Shareholders	As on 31.03.2012		As on 31.03.2011
	No. of Shares	% of Holding	No. of Shares	% of Holding
Lustre Merchants Private Limited	3569894	8.14	3569894	8.14
Diwakar Marketing Private Limited	4300000	9.81	4300000	9.81
Shreyansh Mercantile Private Limited	2830000	6.46	2830000	6.46
Cubitex Marketing Private Limited	4300000	9.81	4300000	9.81

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		438.313	438.313	370.400
2] Share Application Money		0.000	0.000	0.000
3] Money Received Against Share Warrant		151.931	151.931	0.000
4] Reserves & Surplus		6244.564	5725.252	2200.431
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6834.808	6315.496	2570.471
LOAN FUNDS
1] Secured Loans		6326.954	5476.387	5739.663
2] Unsecured Loans		1121.289	1185.938	896.276
TOTAL BORROWING		7448.243	6662.325	6635.939
DEFERRED TAX LIABILITIES		523.334	537.943	558.116
TOTAL		14806.385	13515.764	9764.526
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8207.581	7745.457	4600.879
Capital work-in-progress		378.752	322.207	482.813
INVESTMENT		501.800	502.245	501.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3774.932	3578.927	2813.771
	Sundry Debtors	3356.349	2699.248	1790.680
	Cash & Bank Balances	207.886	251.206	100.300
	Other Current Assets	53.213	54.928	0.000
	Loans & Advances	509.770	567.793	279.130
Total Current Assets		7902.150	7152.102	4983.881
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	755.401	460.595	370.474
	Other Current Liabilities	1086.333	1202.620	261.004
	Provisions	342.164	543.032	173.269
Total Current Liabilities		2183.898	2206.247	804.747
Net Current Assets		5718.252	4945.855	4179.134
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14806.385	13515.764	9764.526

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	25544.442	22168.149	17953.094
		Other Income	8.962	4.850	8.649
		TOTAL (A)	25553.404	22172.999	17961.743
Less	EXPENSES
		Cost of Materials Consumed	17935.127	16017.831
		Purchase of Stock-in-Trade	1568.439	1094.358
		Employee Benefit Expense	1264.955	1155.007	16666.095
		Other Expenses	2819.949	2803.840
		Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(2.447)	(717.322)
		TOTAL (B)	23586.023	20353.714	16666.095
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1967.381	1819.285	1295.648
Less	FINANCIAL EXPENSES (D)		938.188	605.396	487.143
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1029.193	1213.889	808.505
Less/ Add	DEPRECIATION/ AMORTISATION (F)		473.079	512.362	270.928
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		556.114	701.527	537.577
Less	TAX (H)		36.301	34.172	85.848
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		519.813	667.355	451.729
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2065.360	1544.417	1217.600
Less	APPROPRIATIONS
		Proposed Equity Dividend	NA	65.747	55.662
		Tax on Dividend	NA	10.665	9.244
		Deferred tax Revision	NA	0.000	0.000
		Transfer to General Reserve	NA	70.000	60.000
	BALANCE CARRIED TO THE B/S		NA	2065.360	1544.423
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3116.887	2541.318	2193.137
	IMPORTS
		Raw Materials	1780.672	1415.623	496.692
		Components and Spare Parts	17.807	38.056	17.695
		Capital Goods	67.208	126.195	449.402
	TOTAL IMPORTS		1865.687	1579.874	963.789
	Earnings / (Loss) Per Share (Rs.)		11.86	19.13	16.23

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	6283.800	7014.400
Total Expenditure	5798.300	6518.700
PBIDT (Excl OI)	485.500	495.700
Other Income	2.100	2.300
Operating Profit	487.600	498.000
Interest	225.000	229.500
PBDT	262.600	268.500
Depreciation	127.500	128.500
Profit Before Tax	135.100	140.000
Tax	16.100	18.200
Profit After Tax	119.000	121.800
Extraordinary Items	0.000	0.000
Net Profit	119.00	121.800

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.03	3.00	2.51
Net Profit Margin (PBT/Sales)	(%)	2.17	3.16	2.99
Return on Total Assets (PBT/Total Assets}	(%)	3.45	4.70	5.60
Return on Investment (ROI) (PBT/Networth)		0.08	0.11	0.20
Debt Equity Ratio (Total Liability/Networth)		1.41	1.40	2.89
Current Ratio (Current Asset/Current Liability)		3.62	3.24	6.19

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

HISTORY:

Formerly known as Prakash Tubes, Surya Roshni has two divisions -- the steel division and the lighting division. The steel division, which commenced operations in 1974, manufactures electrical resistance welded (ERW) steel pipes and tubes, and cold-rolled formed sections and profiles, and cold-rolled (CR) strips. The lighting division, operating since 1983, manufactures flourescent tube lamps (FTL), general lighting systems (GLS), glass shells for GLS lamps, tubular glass shells, FTL filaments, GLS filaments, and sodium and mercury vapour lamps. The lamps are sold under the Surya brand. A backward intergration to manufacture lead glass tubings and an expansion of capacities of the lighting division were undertaken in 1993. The company recently completed a project to manufacture halogen lamps and decorative lamps. Its backward integration project to manufacture ribbon glass shells, FTL tube drawing lines, GLS filaments, FTL filaments, GLS caps and GLS chains, is under implementation, out of which two GLS lamp groups, GLS lamp filament and automatic FTL packing machine were completed in 1995-96. The technologies for the above projects are from GB Glass, UK, and Falma, Switzerland. The projects for GLS lamps, GLS filaments, lamp caps and electrostatic coating were also completed in 1995-96, while those for ribbon glass shells and tube drawing projects, will get over in 1998. All the products except ribbon shells are totally for captive consumption. Surya Roshni has also set up a joint venture with Osram, under the name Osram Surya Private Limited to manufacture compact flourescent lamps.

FINANCIAL PERFORMANCE

In the fiscal year, the revenue from operations of the Company increased to Rs.25544.400 Millions from Rs.22168.100 Millions last year, registering an increase of 15.23%., Profit After Tax is Rs. 519.800 Millions as compared to Rs.667.300 Millions last year during this period.

STEEL DIVISION

During the year, the revenue from operations of the division is Rs. 1784.60 Millions as compared to Rs 14946.900 Millions in the last financial year, registering an increase of 19.40%. The export turnover of the division is Rs.3133.500 Millions in comparison to Rs.2479.200 Millions in the last financial year registering an increase of 26.93%. The Company has continued a series of Dealer, Retailer, Plumber and Architect / Builder / Consultants Conferences along with Press conferences and Brand awareness campaigns, which has increased the demand potential substantially. Due to the spurt in demand of petroleum products, existing oil refineries are expanding their capacities and new refineries are coming up burgeoning as a result the demand for steel pipes enhanced substantially during the year.

LIGHTING DIVISION

The Lighting Division has witnessed a growth in revenue from operations. During the year, the revenue from operation of the division increased to Rs.7698.400 Millions as compared to Rs.7221.300 Millions last year, an increase of 6.61 % over the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

Subject is a 38 years old Conglomerate with diverse businesses with units in different states. The range of business cover a wide spectrum of Lighting, Steel tubes and pipes, Cold Rolled Strips, High masts and PVC tubes. These are linked by a common philosophy of commitment to people, transparency in dealings and high quality standards.

The company’s core business comprises of lighting and steel tube products. It is the only lighting company of India with 100% backward integration resulting in timely availability of best quality raw materials at effective low cost .Thanks to his integration SURYA competitively positioned today over its rivals and has become prominent brand in the consumer market. The company’s manufacturing facilities are as follows –

• Largest ERW pipe and Cold Rolled Strips Mills at Bahadurgarh,Haryana

• High Mast and ERW pipe manufacturing Unit at, Malanpur, MP

• Lighting Units at Kashipur (Uttarakhand) and Malanur, MP producing Fluorescent Tube lights, GLS Lamps, CFL Lamps, PCB, HPSV Lamps, HPMV Lamps and Metal Halide Lamps.

• Asia Largest Ribbon glass plant from Dema Glass UK (Formerly known as GB Glass) at Mala

• PVC tube Unit at Kashipur, Uttarakhand.

Quality is the index of a company success in today's global economy. The company's success at both domestic and global front can be attributed to its unswerving focus on quality. Quality has always been the driving force in every process from the raw material stage to the finished product at Surya. By being cost effective without compromising on quality, the company has become a leader in Steel pipes industry and the second largest lighting company in India .The company processes are certified under ISO 9001:2008 Quality Management Systems Standard, ISO 14001:2004 Environmental Management Systems Standards and OHSAS 18001:2007 Occupational Health and Safety Management System Standard. Surya has also obtained 5 star rating for fluorescent tube lamps from Bureau of Energy Efficiency, India.

INDUSTRY STRUCTURE, DEVELOPMENT AND OUTLOOK

OUTLOOK FOR STEEL PIPES

India has become the global pipe manufacturing hub primarily due to the benefits of its lower cost, high quality and geographical advantages. The global accreditations and certifications that the Indian companies possess have made them preferred suppliers for many leading oil and gas companies in the world and particularly those in

Middle East, North America and Europe. Since the global economy returned to sustained growth, the domestic pipe industry is expected to accelerate into high growth trajectory. Their demand forecasting is derived from several upcoming pipeline projects expected in India and other countries along with the normal demand for replacement of existing pipe lines.

The expanding infrastructure, oil and gas and construction sectors have been the main growth drivers for steel industry that includes steel pipes. Indian pipe manufacturers are greatly benefited after commencement of the Exploration and Production (EandP) projects for oil and gas companies that were earlier kept on hold or revoked because of the global financial crisis. This new spurt in demand will impat positively on the future growth. Existing oil refineries are expanding their capacities and new refineries are coming up burgeoning as a result the demand for steel pipes.

The transportation and distribution of gas widely used for domestic and commercial purposes have undergone a sea change with the gas and oil being conveyed through steel pipe lines over long distances. The surging demand based on several ongoing natural gas pipeline projects in India will surely boost the demand for steel pipes. The increased emphasis and thrust given by the Government on infrastructure and housing sectors where steel tubes and pipes are much in use will again benefit the pipe industry. It would be pertinent to point out that the steel pipe industry has witnessed a good growth during the year with the concomitant growth in the market due to the surge in Infrastructure sectors. Mention must be made of the several initiatives taken by the Indian government to make available basic water supply and sanitation over large parts of the country. Along with the focus on oil and gas sector, these initiatives serve as a big boost to the pipe industry as a whole.

OUTLOOK FOR LIGHTING INDUSTRY

Lighting is always a prime necessity in the modern world. It is an important component in the industrial growth of a country and vital at the domestic front for a good living. With the increase in residential houses, the demand for lighting and consequently the lighting industries are growing at tremendous pace.With a general improvement in the power condition both in urban and rural areas and anticipated increase in spending on infrastructure development both in public and private sectors in the coming years, the demand of regular lighting products is expected to increase by leaps and bounds.

Subject brings brightness to many homes every evening in over 48 countries across the globe. Surya Roshni is one among the large producers in the field of light source and its components in India and has played the role of a technology leader by establishing new benchmarks for the industry. As a leader in the area of lighting equipments, Surya Roshni has been providing innovative and safe lighting equipments to its customers. Its wide range of world class energy efficient lamps, T5 lamps, Fluorescent lamps, high pressure sodium and mercury lamps, metal halides lamps to name a few are manufactured at state-of-the-art units with top of the line machinery and equipments (from FALMA-Montena S.A., Switzerland, DEMA engineering UK.GE-Hungary) to benchmarked processes and practices. Surya Roshni has instituted a culture of continuous quality upgradation and a strong system to ensure that the quality meets international benchmark.

Subject has an exhaustive range of luminaires and accessories to meet the requirement of every segment of professional lighting that includes domestic, industrial, designer, commercial, street lights besides LEDs. Products are designed and developed after extensive in house research ensuring thereby high standards of quality. To complement its foray in luminaire segment, Subject has set up with state-of-the-art manufacturing facility for High Mast Lighting Systems and Octagonal Poles.

Apart for light source manufacturing, Subject has also been a leading manufacturer of various lamps' components since last two decades and well known as quality lamp component supplier from India. Subject has set-up state-of-the-art lighting laboratory in NOIDA that is one of the best lighting laboratories in Asia. It has house the Mirror Goniophotometer from LMT-Germany and is used for developing new generation energy saving luminaries. In adition to this, Surya will provide Photometric Optical Testing facility for all kinds of luminaries. Subject is also diversifying the product range to PVC/CPVC Pipes and Fittings. The company has commissioned a latest art of technology plant imported from Europe at Kashipur.

FUTURE PROSPECTS

STEEL DIVISION

India has become the global pipe manufacturing hub primarily due to the benefits of its low costs, higher quality and geographical advantages. The global accreditations and certifications that the Indian companies possess have made them preferred suppliers for many leading oil and gas companies in the world and particularly those in Middle East, North America and Europe.The expanding infrastructure, oil and gas and construction sectors have been the main growth drivers for steel industry that includes steel pipes. After the commencement of the Exploration and Production (EandP) projects for oil and gas companies, Indian pipe manufacturers are greatly benefitted by this new spurt in demand which will impact positively on the future growth. Existing oil refineries are expanding their capacities and new refineries are coming up burgeoning as a result the demand for steel pipes.

LIGHTING DIVISION

Lighting is always a prime necessity in the modern world. With the increase in residential houses, the demand for lighting and consequently the lighting industries are growing at tremendous pace. With growing demand for lighting products, the Lighting industry is on a strong wicket. Surya Roshni brings brightness to many homes every evening in over 48 countries across the globe as it has an exhaustive range of luminaries and accessories to meet the requirements of every segment of the society. Through whole hearted efforts and better commitment

at all levels, the revenue from operations and profitability of the company will be provide a more healthy growth and profitability in the years to come.

LUMINAIRE BUSINESS GROUP

The Luminaire Business Group (LBG) of the Lighting Division has been making consistent growth year on year. This trend has continued in this year also. Their new State of the Art World Class Laboratory has been commissioned and has been inaugurated by Sh. G B Pradhan, Honorable Special Secretary, Ministry of Power, Government of India and Dr. Ajay Mathur, Director General, Bureau of Energy Efficiency. This is a major leap in the direction of developing Energy Efficient Products by their Company.

In this year many new energy saving products has been introduced like :

• LED Street Lights
• LED Tube Lights
• Induction Light for Petrol Pumps
• Induction Light for Street Lights
• Sensor Controlled Streetlights
• New Generation HID Street Lights

Luminaire Business Group is extending its Dealer Network Range across India and now has more than 500 dealers. In addition to this various marketing initiatives are being taken to consolidate the growth of the division and make the presence felt in the market.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Claims against the company not acknowledged as debt	22.931	22.931
Guarantees	284.987	262.059
Corporate Guarantee in favour of PNB and SBI for providing term loans to Subsidiary Company	1350.000	1350.000
Bonds executed by the Company to Custom Department against export obligation under EPCG Scheme	332.545	332.545
Other money for which the company is contingently liable	0.000	0.000
TOTAL	1990.463	1967.535

FIXED ASSETS:

v Land and Site Development

v Building

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Office Equipments

v Air conditioners and Coolers

v Miscellaneous Assets

v Temporary Erections

STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER/HALF YEAR ENDED 30.09.2012

PARTICULAR	3 MONTHS ENDED		6 MONTHS ENDED
	UNAUDITED	UNAUDITED	UNAUDITED
	30.09.2012	30.06.2012	30.09.2012
Net Sales/Income from Operations	7014.400	6283.800	13298.200
Expenditure
Cost of materials consumed	5192.800	4557.600	9750.400
Purchase of stock in trade	354.200	384.500	738.700
Changes in inventories of finished goods, work in progress and stock in trade	(166.100)	(123.100)	(289.200)
Employee benefits expenses	319.300	292.700	612.000
Depreciation and amortization expenses	128.500	127.500	256.000
Other expenses	818.500	686.600	1505.100
Total	6647.200	5925.800	12573.000
Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	367.200	358.000	725.200
Other Income	2.300	2.100	4.400
Profit Before Interest and Exceptional Items (3+4)	369.500	360.100	729.600
Interest	229.500	225.000	454.500
Profit After Interest but before Exceptional Items (5-6)	140.000	135.100	275.100
Exceptional Items	--	--	--
Profit from Ordinary Activities before Tax (7+8)	140.000	135.100	275.100
Tax Expense
a) Current tax	14.200	14.900	29.100
b) Deferred tax	4.000	1.200	5.200
Net Profit from Ordinary Activities after Tax (9-10)	121.800	119.000	240.800
Extraordinary Item (net of expense)	--	--	--
Net Profit for the period (11-12)	121.800	119.000	240.800
Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	438.300	438.300	438.300
Reserves Excluding Revaluation Reserve	--	--	--
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
a) Basic and diluted EPS before extraordinary items	2.78	2.72	5.50
b) Basic and diluted EPS after extraordinary items	2.78	2.72	5.50
Public Shareholding
-Number of Shares	15775068	15775068	15775068
- Percentage of Shareholding	35.99	35.99	35.99
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	--	--	--
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
b) Non Encumbered
- Number of Shares	28056182	28056182	28056182
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
- Percentage of Shares (as a % of the Total Share Capital of the Company)	64.01	64.01	64.01

INVESTOR COMPLAINTS	3 MONTHS ENDED 30.09.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	3
Disposed of during the quarter	3
Remaining unresolved at the end of the quarter	Nil

SEGMENT WISE REVENUE, RESULT AND CAPITAL EMPLOYED

Rs. in Millions

PARTICULAR	3 MONTHS ENDED		6 MONTHS ENDED
	UNAUDITED	UNAUDITED	UNAUDITED
	30.09.2012	30.06.2012	30.09.2012
SEGMENT REVENUE
Steel Products	4916.000	4534.300	9450.300
Lighting Products	2704.000	2193.500	4897.500
Total	7620.000	6727.800	14347.800
Less: Inter-Segment Revenue	0.000	0.000	0.000
Less: Excise Duty	605.600	444.000	1049.600
Net Sales/Income From Operation [Net of Excise Duty]	7014.400	6283.800	13298.200
SEGMENT RESULTS
Profit / loss before tax and finance cost form each segment wise
Steel Products	158.500	162.400	320.900
Lighting Products	211.000	197.700	408.700
Total	369.500	360.100	729.600
Less:
Finance cost	229.500	225.000	454.500
Other un-allocable expenditure off	0.000	0.000	0.000
Un-allocable income	0.000	0.000	0.000
Total profit before tax	140.000	135.100	275.100
CAPITAL EMPLOYED
[Segment Assets – Segment Liabilities ]
Steel Products	9853.000	9876.800	9853.000
Lighting Products	5148.200	5139.600	5148.200
Total	15001.200	15016.400	15001.200

STATEMENT OF ASSETS AND LIABILITIES

Rs. in Millions

PARTICULARS	30.09.2012
	Unaudited
Equity and liabilities
Shareholders' fund
Share capital	438.300
Reserve & surplus	6666.400
Sub-total - Shareholders' funds	7104.700
Non - current liabilities
Long term borrowings	3559.700
Deferred tax liability (net)	528.500
Other long term liabilities	51.100
Long term provisions	143.100
Sub-total - Non-current liabilities	4282.400
Current liabilities
Short term borrowings	3808.300
Trade payables	619.800
Other current liabilities	1092.400
Short term provisions	248.300
Sub-total - Current liabilities	5768.800
Total - Equity & Liabilities	17155.900
Assets
Non-current assets
Fixed assets	8536.600
Capital work in progress	0.000
Non-current investment	501.800
Long term loans & advances	0.000
Other non-current assets	0.000
Sub-total - Non-current Assets	9038.400
Current assets
Inventories	3750.700
Trade receivables	3640.600
Cash & bank balances	250.000
Short term loans & advances	418.000
Other current assets	58.200
Sub-total - Current Assets	8117.500
Total – Assets	17155.900

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 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.52.75
UK Pound	1	Rs.85.07
Euro	1	Rs.69.04

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		51

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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