MIRA INFORM REPORT

Report Date :

29.10.2012

IDENTIFICATION DETAILS

Name :	TULSYAN NEC LIMITED
Registered Office :	61, Sembudoss Street, 1^st Floor, Chennai – 600 001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.04.1947
Com. Reg. No.:	18-007437
Capital Investment / Paid-up Capital :	Rs. 108.700 Millions
CIN No.: [Company Identification No.]	L28920TN1947PLC007437
TAN No.: [Tax Deduction & Collection Account No.]	BLRT04262G
PAN No.: [Permanent Account No.]	AABCT3720E
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of TMT bars and Synthetics woven and sacks
No. of Employees :	1650 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 4000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and established company having satisfactory track. It has achieved some growth in its sales turnover and profits during 2012. There appears a huge external borrowing recorded by the company. However, trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered 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	ICRA
Rating	Long Term Working Capital Facilities : BB (Suspended)
Rating Explanation	Moderate risk of default
Date	April 2012

Rating Agency Name	ICRA
Rating	Short Term Fund Based and Non Fund Based Facilities : A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	April 2012

Reason for Suspension: Absence of the requisite information from the company

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 :	61, Sembudoss Street, 1^st Floor, Chennai – 600 001, Tamilnadu, India
Tel. No.:	91-44-25222673/ 25223918/ 25221060/ 25222676/2024432/2023974
Fax No.:	91-44-39181076
E-Mail :	tulsyannecltf@vsnl.net investor@tulsyannec.com
Website :	www.tulsyannec.co.in
Corporate Office :	Apex Plaza, 1^st Floor, Old No. 3, New No. 77, Nungambakkam High Road, Chennai - 600 034, Tamilnadu, India
Tel. No.:	91-44-39181060 / 39120756 / 39181097
Fax No.:	91-44-39181097
Email :	tulsyannec@gmail.com investor@tulsyannec.co.in
Website :	www.tulsyannec.co.in
Administrative Office :	37, Kaveriappa Layout, Miller Tank Bund Road, Vasanth Nagar, Bangalore - 560 052, Karnataka, India
Steel Division :	· 39, Dr. Harikrishna Naidu Street, Ambattur, Chennai - 600 053, Tamilnadu, India · D-4, SIPCOT Industrial Complex, Gummudipoondi, Chengalpet District, Tamilnadu, India
Depot :	55/2, Cuddalore Main Road, Ariyankuppam, Pondicheery – 605 007, India
Windmill :	· Kudimangalam, Udumalapet, Tamilnadu, India · Pazhavoor, Tirunelveli District Tamilnadu, India · Kavalakiurichi, Tirunelveli District Tamilnadu, India
Synthetic Division :	· 7-A, Doddaballapura Industril Area, Kasba Hobli, Karnataka, India · 2-B, Survey No. 16, Korandanahalli, Malur Industrial Area, Malur Kolar- 563130t, Karnataka, India · Plot No.20, KIADB Industrial Area, Malur - 563130, Kolar District, Karnataka, India · Plot No.E-4, Madkaim Industrial Area, Madkain Village, Ponda Taluk, Goa · Survey No. 4/1-P-1, Adakamaranahully Village, Dasanapura Hobli, Makali Post, Tumkur Road, Bangalore, Karnataka, India · Survey No.237 to 245, Boincheruvupalli Village, Peapully Mandal, Kurnool District – 518 220, Andhra Pradesh, India

DIRECTORS

As on: 31.03.2012

Name :	Mr. Lalit Kumar Tulsyan
Designation :	Managing Director
Date of Birth/Age :	18.02.1960
Qualification :	B.Com
Experience :	31 Years
Date of Appointment :	12.07.1994
Name :	Mr. Sanjay Tulsyan
Designation :	Managing Director
Date of Birth/Age :	12.01.1964
Qualification :	B.Com., (Hons)
Experience :	26 Years
Date of Appointment :	06.09.1986
Name :	Mr. S. Soundararajan
Designation :	Director
Qualification :	I.A. & A.S.
Date of Appointment :	18.01.1993
Name :	Mr. P.T. Rangamani
Designation :	Director
Date of Birth/Age :	26.08.1934
Qualification :	F.C.S., B.L.
Experience :	56 Years
Date of Appointment :	30.03.1994
Name :	Mr. A.P. Venkateshwaran
Designation :	Director (Finance)
Qualification :	B.Com. FCA
Date of Appointment :	09.01.2004
Name :	Mr. S. Ramakrishnan
Designation :	Director
Qualification :	B.Com.
Date of Birth/Age :	26.06.1963
Date of Appointment :	31.03.2005
Name :	Mr. Sanjay Agarwalla
Designation :	Whole –Time Director
Qualification :	B.Com
Date of Appointment :	27.04.2006
Name :	Mr. V. Kirubanandan
Designation :	Director
Date of Birth/ Age :	30.04.1948
Qualification:	B.E., M. Tech., M.B.A.
Experience :	43 years
Date of Appointment :	27.04.2006
Name :	Mr. C. Ramachandran
Designation :	Director
Date of Birth/ Age :	15.05.1938
Qualification:	I.A.S
Experience :	36 Years
Date of Appointment :	12.12.2007
Other Directorship :	Tamilnadu Petroproducts Limited Elnet Technologies Limited IG3 Infra Limited Elnet Software City Limited Grand Luxe Hotels Limited The Great Indian Linen and Textile Infrastructure Company Private Limited ETL Power Services Limited Appu Hotels Limited

KEY EXECUTIVES

Name :	Mr. V. Subramani
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2012)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11,215,180	74.77
Sub Total	11,215,180	74.77
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11,215,180	74.77
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2,000	0.01
Sub Total	2,000	0.01
(2) Non-Institutions
Bodies Corporate	185,133	1.23
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,924,656	12.83
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,408,664	9.39
Any Others (Specify)	264,367	1.76
Clearing Members	970	0.01
Hindu Undivided Families	165,392	1.10
Non Resident Indians	98005	0.65
Sub Total	3,782,820	25.22
Total Public shareholding (B)	3,784,820	25.23
Total (A)+(B)	15,000,000	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)	15,000,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of TMT bars and Synthetics woven and sacks.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Finished Steel Products (Chennai)	Delicensed	48000 MT	43374 MT
Finished Steel Products (Chennai- Gummudipoondi) * 150000 MT added during September, 2009	Delicensed	300000* MT	130916 MT
MS Ingots	Delicensed	36000 MT	--
MS Billet	Delicensed	144000 MT	75679 MT
HDPE/PP Woven Sacks and Fabrics	Delicensed	25797 MT	11696 MT

GENERAL INFORMATION

Suppliers :

Local

· Vinmar International Limited- Usa

· Basell Asia Pacific Limited - Hongkong

· Tricon Energy Limited - Usa Limited.

· Oman Polypropylene L.L.C. – Oman

· Borouge Pte Limited - Abu Dhabi- U.A.E.

· Saudi Basic Industries Corporation

International

· Reliance Industries Limited - Mumbai

· Blend Colours Private Limited

· Konkan Speciality Pol Product Pvt

· Plasmix Limited

· S.C.J.Colourants

· Soltex Petro Products

Customers :

Steel Division

· DLF Group of Companies

· TVS Group of Companies

· HCL technologies Limited.

· Gammon India Limited.

· Cognizant Technologies

· Larsen & Toubro Limited.

· Prestige Group of Companies

· Central/State Class 1 contractors

Plastic Division

· Dalmia Cement (Bharat) Limited

· Grasim Industries Limited

· Grasim Industries Limited

· Ultratech Cement Limited –Ark

· Associated Cements Companies Limited

· Industrial Mineral Company

· Mangalore Chemicals & Fert Limited

· Fritz Marketing Inc.,-USA

No. of Employees :

1650 (Approximately)

Bankers :

· Canara Bank

· Syndicate Bank

· Andhra Bank

· State Bank of India

· IDBI Bank

· Indian Overseas Bank

· Shamrao Vithal Co-operative Bank

Facilities :

(Rs. In Millions)

Secured Loans	31.03.2012		31.03.2011
	(Rs. In Millions)
Working capital loans from Banks (Note 1)
Canara Bank	573.455		531.397
Syndicate Bank	460.328		409.650
State Bank of India	307.330		308.743
Andhra Bank	170.399		152.892
IDBI Bank Limited	150.000		0.000
Term Loan from Banks
Andhra Bank	341.444		82.392
Canara Bank	640.824		145.750
Syndicate Bank	333.084		213.876
State Bank of India	153.552		16.652
State Bank of India (Windmill)	7.914		13.914
Indian Overseas Bank –	346.080		97.900
Shamrao Vithal Co-operative Limited	186.235		0.000
From Financial Institutions
Industrial Development Bank of India	175.064		220.938
Tata Capital	26.072		27.284
From Others	231.407		210.069
Total	4103.188		2431.457
Notes: 1. Against hypothecation of book debts inventories and second charge on fixed assets of the company. 2. Secured by first charge on fixed assets on above loan. 3. First charge on wind mill, in addition, the above loans are also guaranteed by directors. 4. Secured by first charge on balance of fixed assets of the company. In addition, the above loans are also guaranteed by directors.
Unsecured Loan		As on 31.03.2012		As on 31.03.2011
From Body Corporate		345.369		135.360
From Directors		1.175		62.795
From Others		8.756		28.963
Interest Accured and Due		14.650		8.474
Total		369.950		235.592

Banking Relations :	--
Auditors :
Name :	C.A. Patel and Patel Chartered Accountants
Address :	Chennai
Subsidiaries :	· Cosmic Global Limited · Tulsyan Power Limited · Chitrakoot Steel and Power Private Limited · Balaji Engineering and Galvanizing Limited · Color Peppers Media Private Limited · T G Logistics Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
22000000	Equity Shares	Rs.10/- each	Rs. 2200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions
9566565	Equity Shares	Rs. 6/- each	Rs.57.400 Millions
433435	Equity Shares	Rs. 3/- each	Rs.1.300 Millions
	Total		Rs. 108.700 Millions

As on 31.03.2012

Shareholders Holding More than 5% of the Share Capital

Name of the Shareholders	No of Share
Lalitkumar Tulsyan	4612555
Sanjay Tulsyan	4475481
Priya Tulsyan	954982
Allka	751130

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		108.700	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1061.854	655.023	573.307
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1170.554	705.023	623.307
LOAN FUNDS
1] Secured Loans		4103.188	2431.457	2030.769
2] Unsecured Loans		369.950	235.592	207.019
TOTAL BORROWING		4473.138	2667.049	2237.788
DEFERRED TAX LIABILITIES		139.275	153.811	138.189
TOTAL		5782.967	3525.883	2999.284
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1030.276	1053.362	1069.409
Capital work-in-progress		2193.277	411.385	1.476
INVESTMENT		92.894	87.867	77.364
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		21.970	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1016.222	1269.443	974.746
	Sundry Debtors	2750.075	1354.682	1368.731
	Cash & Bank Balances	206.033	206.000	187.390
	Other Current Assets	533.888	0.000	0.000
	Loans & Advances	761.441	903.928	632.231
Total Current Assets		5267.659	3734.053	3163.098
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2429.172	1538.608	1119.505
	Other Current Liabilities	35.218	10.435	0.000
	Provisions	358.719	215.963	192.558
Total Current Liabilities		2823.109	1765.006	1312.063
Net Current Assets		2444.55	1969.047	1851.035
MISCELLANEOUS EXPENSES		0.000	4.222	0.000
TOTAL		5782.967	3525.883	2999.284

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	11301.314	7812.605	5930.097
		Other Income	57.533	17.767	17.524
		TOTAL	11358.847	7830.372	5947.621
Less	EXPENSES
		Cost of Materials Consumed	7570.555	6242.623	5721.770
		Exceptional Items Profit / Loss	0.000	12.696	8.573
		Purchase of stock in Trade	1828.748	293.199
		Increase/Decrease in Stocks	278.163	(131.930)
		Employee benefit expenses	271.653	237.596
		Other expenses	666.541	565.618
		Financial Costs	500.550	386.727
		TOTAL	11116.210	7606.529	5730.343
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		242.637	223.843	217.278
Less/ Add	DEPRECIATION/ AMORTISATION		88.508	85.788	81.333
	PROFIT BEFORE TAX		154.129	138.055	135.945
Less	TAX		21.264	44.622	51.017
	PROFIT AFTER TAX		132.865	93.433	84.928
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		405.036	333.484	269.883
Less	APPROPRIATIONS
		Transfer to General Reserve	7.800	10.500	10.200
		Interim dividend Paid	0.000	5.000	0.000
		Corporate Tax on Interim Dividend Paid	0.000	0.850	0.000
		Proposed Dividend	16.305	5.000	10.000
		Corporate Tax on Dividend	0.820	0.531	1.126
	BALANCE CARRIED TO THE B/S		512.976	405.036	333.485
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	506.842	319.020	185.719
	TOTAL EARNINGS		506.842	319.020	185.719
	IMPORTS
		Raw Materials	1378.576	1213.546	649.208
	TOTAL IMPORTS		1378.576	1213.546	649.208
	Earnings Per Share (Rs.)		12.22	18.69	16.98

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Net Sales	2464.490
Total Expenditure	2327.910
PBIDT (Excl OI)	136.580
Other Income	0.070
Operating Profit	136.650
Interest	90.330
Exceptional Items	0.000
PBDT	46.320
Depreciation	22.730
Profit Before Tax	23.590
Tax	8.190
Provisions and contingencies	0.000
Profit After Tax	15.400
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	15.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.17	1.19	1.43
Net Profit Margin (PBT/Sales)	(%)	1.36	1.77	2.29
Return on Total Assets (PBT/Total Assets}	(%)	2.45	2.88	3.21
Return on Investment (ROI) (PBT/Networth)		0.13	0.20	0.22
Debt Equity Ratio (Total Liability/Networth)		6.23	6.28	5.70
Current Ratio (Current Asset/Current Liability)		1.86	2.14	2.41

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%	Yes
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	Yes

OPERATIONS AND OUTLOOK:

The Sales and other receipts grew 45.06% YOY to Rs.11358.847 Millions. EBITDA grew by 2.58% YOY to Rs.132.865 Millions and PAT grew by 42.20% YOY to 132.865 Millions. The directors expect a growth of 40% in the top line for the FY 2013.

As in the last year during the current year also there were drastic power cuts consequently affecting their costs and also the production. Due to these power cuts they could not utilize their capacities in full thus losing out on economies of large scale production. The 35 MW captive thermal power plants at Gummudipoondi is in its final stage and expected to commence production on or after November 2012 and consequently will start commercial production on or after December 2012. The other additional Power Plant of 35 MW capacity, additional Induction furnaces of 4 numbers of 20T each for billet manufacturing with annual installed capacity of 274000 MTPA this will be set up at the new site where the captive power plant of 35MW is under implementation. The company is setting up a Wire Rod and Bundling machine with a coal gasifier at the existing rolling mill division in Gummudipoondi.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company's products are TMT Bars, Sponge Iron, Billets and Ingots in the steel division and in synthetic division it is PP Woven Sacks, FIBC and Woven Fabric. TMT Bars are used in the Construction Sector and the plastic products cater to the packaging needs of various industries such as Cement, Fertilizers, Food grains, Sugar, etc.

The raw materials for Steel Making are M.S. scrap, Sponge and for TMT Bars is Billets. PP granules are used for manufacture of plastic packaging products. This raw material is available in abundance within the country and can also be freely imported. Being in the commodity market the company is continuously making efforts for reducing the cost of production to sustain its margins.

SEGMENT-WISE/PRODUCT-WISE:

The production of steel rods was 196786 MT compared to 174290 MT in the previous year. The sale of rods during the year was 205623 MT compared to 176603 MT in the previous year.

The production of synthetic products was 12548 MT compared to 11881 MT in the previous year. The sale of synthetic products during the year was 12659 MT compared to 11013 MT in the previous year

FUTURE OUTLOOK:

The economic revival will bring in lots of opportunities for growth. With various infrastructure facilities coming up both in private and public sectors including nuclear power and water, across the country, the management envisages huge demand for its products especially steel. The company has emerged stronger in the last three four years and is well set to capitalize on growth prospects as they arise. The main Raw Material for our Steel making is Scrap / Sponge Iron and Power. MS Scrap is being imported from various countries all across the globe; sponge iron is being supplied by our subsidiary company M/s. Chitrakoot Steels and Power Private Limited. The other major cost is power which cost the company is aiming to reduce by installing a 35MW thermal Power plant at Gummudipoondi. During the current year your company is planning to set up an additional captive Power Plant of 35 MW capacity, additional Induction furnaces of 4 numbers of 20 Ton each for billet manufacturing with annual installed capacity of 274000 MTPA this will be set up at the new site where the captive power plant of 35 MW is under implementation.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Turnover for the year amounted to Rs.11301.314 Millions as against Rs.7812.605 Millions for the previous year showing a increase of 44.65% over the last year. The profit during the year, after tax was Rs.132.865 Millions as against Rs.93.433 Millions last year, indicating an increase of 42.20%.

CONTINGENT LIABILITIES:

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the Notes to the Accounts wherever practicable.

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Guarantees Outstanding	7.608	14.238
FLC with Bank	0.000	481.367
Entry Tax	8.044	8.044
Excise Duty	0.996	0.996

The Company has executed (during the year 2009-10 and 2011-12) Corporate Guarantee in favour of the Shamrao Vithal Co- operative Bank Limited, Mumbai for the loan taken by M/s. Chitrakoot Steel and Power Private Limited, wholly owned subsidiary of the Company, for Rs.250.000 Millions.

FIXED ASSETS

· Land

· Leasehold Land

· Factory Buildings

· Office Premises

· Plant and Machinery

· Works Equipments

· Lab Equipments

· Office and Other Equipments

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 53.63
UK Pound	1	Rs. 86.18
Euro	1	Rs. 69.74

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		47

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.