MIRA INFORM REPORT

Report Date :

08.04.2013

IDENTIFICATION DETAILS

Name :	JSW CEMENT LIMITED
Registered Office :	Jindal Mansion, 5a, Dr. G. Deshmukh Marg, Mumbai – 400026, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.03.2006
Com. Reg. No.:	11-160839
Capital Investment / Paid-up Capital :	Rs.3015.100 Millions
CIN No.: [Company Identification No.]	U26957MH2006PLC160839
PAN No.: [Permanent Account No.]	AABCJ6731B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Cement.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 15900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is JSW Group company. It is a well established and reputed company having a satisfactory track record. The performance capability of the company appears to be good. However, reserves of the company appears to be low. Trade relations are decent. Business is active. Payment are reported to be usually correct and as per commitment. 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	BBB (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 27, 2012

Rating Agency Name	CARE
Rating	A3+ (Short Term Rating)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 27, 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/ Corporate Office :	Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai – 400026, Maharashtra, India
Tel. No.:	91-22-23513000/ 23513000/ 43437199/ 67848626/ 612
Fax No.:	91-22-23523459/ 23526400/ 67848333
E-Mail :	amit.mundhe@jsw.in
Website :	www.jsw.in
Branch Office 1:	11, Carmichael Road, Opposite MMC Bunglow, Mumbai – 400026, Maharashtra, India
Tel. No.:	91-22-43437600
Branch Office 2:	Maratha Udhog Bhavan, New Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-67838000
Fax No.:	91-22-24320740
Vasind Works	Village: Vasind, Taluka – Shahapur District Thane – 421604, Maharashtra, India
Tell No.:	91-2527-220022 to 025
Fax No.:	91-2527-220020/ 84/ 92
Vijayanagar Works	R O Vidyanagar, Toranagallu District Bellary – 583275, Karnataka, India
Tell No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138/250665
Vijayanagar Minerals Private Limited	P.O. Vidyanagar, Toranagallu, District Bellary – 583275, Karnataka, India
Tell No.:	91-8395–250120
Fax No.:	91-8395–240365
Jindal Praxair Oxygen Comapny Private Limited	Post Box No .16 Vidyanagar, District Bellary – 583275, Karnataka, India
Tell No.:	91-8395–250856 to 858
Fax No.:	91-8395–250781
South West Port Limited	1st Floor, Port Users Complex, Mormugao Harbour, Goa – 403803, India
Tell No.:	91-832–2523000
Fax No.:	91-832–2523006
Raj West Power	308 - 311, Gitanjali Towers, Bomba Walo ka Baug, Ajmer Road Jaipur – 302006, Rajasthan, India
Tarapur Works	B/6, Tarapur MIDC Boisar – 401506 District Thane, Maharashtra, India
Tell No.:	91-2525–270147/ 270149
Fax No.:	91-2525–270148
Salem Works	Tel: Fax: Pottaneri M Kalipatti Village , Mecheri, Mettur Taluka, Salem – 636453 Tamilnadu, India
Tell No.:	91-4298 – 278400 to 404
Fax No.:	91-4298 – 278618
JSW Bengal Steel Limited	Tower A 3rd Floor DLF IT Park 8 major Arterial Road New Town Kolkata 700156, West Bengal, India
Tell No.:	91-33-40002020
Fax No.:	91-33-40002021
JSW Aluminum Limited	Opposite NSTL, 58-17-1/1, Sanjevaya Nagar, Near NAD Kotha Road Junction, Visakhapatnam – 530009, Andhra Pradesh, India
JSW Energy - Ratnagiri Limited	Ambassador Plaza, 1st floor, Malnaka, Ratnagiri - 415612, Maharashtra, India
JSW Cement Limited	R O Vidyanagar, Toranagallu District Bellary – 583275, Karnataka, India
Tell No.:	91-8395-250120 to 30
Fax No.:	91-8395-250138/ 250665
Project Location:	Bilakalagudduru, Gadivemula Mandal, Nandyal, Kurnool – 518538, Andhra Pradesh, India

DIRECTORS

As on: 02.08.2012

Name :	Mr. Kantilal Narandas Patel
Designation :	Director
Address :	12, Yesho Mangal, 64, Lallubhai, Shmaldas Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	30.05.1951
Qualification :	FCA
Date of Appointment :	29.03.2006
DIN No.:	00019414
Name :	Mr. Jugal Kishore Tandon
Designation :	Director
Address :	B 201, Mon Repos 45, H K Bhabua Lands End, Bandra (west), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	16.12.1941
Qualification :	B. Tech (Hons) Metallurgy
Date of Appointment :	06.06.2007
DIN No.:	01282681
Name :	Roop Chand Sodani
Designation :	Whole Time Director
Address :	House No.C 8/3 JSW Township, P.O Vidyanagar, District, Ballary Karnataka
Date of Birth/Age :	13.05.1954
Qualification :	B.Com, FCA
Experience :	32 years
Date of Appointment :	21.07.2007
DIN No.:	01712915
Name :	Mr. Sunil Chandra Mathur
Designation :	Nominee Director
Address :	H- 62, Maker Kundan Gardens, Juhu Tara Road, Sanrtacruz West, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	07.12.1957
Qualification :	M Com, CAIIB
Date of Appointment :	28.02.2011
DIN No.:	01143204
Name :	Mr. Pankaj Kulkarni
Designation :	Director
Address :	A-602, Dipti Sapphire Natwar Road, Vile Parle (East), Mumbai – 400057, Maharashtra , India
Date of Birth/Age :	07.12.1957
Qualification :	B.E and Master of Financial Management
Date of Appointment :	02.08.2012
DIN No.:	00725144
Name :	Mr. Nirmal Kumar Jain
Designation :	Director
Address :	302, Suman, Playground Road, Vile Parle (East), Mumbai – 400057,Maharashtra, India
Date of Birth/Age :	03.05.1946
Date of Appointment :	31.01.2013
DIN No.:	00019442

KEY EXECUTIVES

Name :	Mr. Amitkumar Prabhakar Mundhe
Designation :	Secretary
Address :	802, A/B Wing, Emeraid Tower, Wadhwa Meadows, Near Cimemax, Kalyan -421301, Maharashtra, India
Date of Birth/Age :	15.09.1979
Date of Appointment :	22.06.2012
PAN No.:	ALPPM5465M
Name :	Mr. G. Veerababu
Designation :	VP (Project)
Date of Birth/Age :	51 Years
Qualification :	B.E. (Mech.)
Experience :	29 Years
Date of Appointment :	30.11.2007
Name :	Mr. U. G. Pawar
Designation :	Sr. VP (Logistics)
Date of Birth/Age :	56 Years
Qualification :	M. Com, LLB
Experience :	32 Years
Date of Appointment :	01.11.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 02.08.2012

Names of Shareholders	No. of Shares
JSW Investments Private Limited, India	301436450
Sapphire Technologies Limited, India	74750
Balwant Ranka	100
Seshagiri Rao	100
K.N. Patel	100
P.K Kedia	100
Jayant Acharya	100
Total	301511700

Equity Share Break up (Percentage of Total Equity)

As on: 02.08.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cement.

Products :

Product Description	ITC Code
Ground Granulated Blast Furnace Slag	25231000
Portland Slag Cement	25232940

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012
Rupee term loans from (Rupee Term Loans and Acceptances mentioned above are secured on pari passu basis by way of equitable mortgage on immovable assets and hypothecation on movable assets.)	9661.900
Total	9661.900

Secured Loans	As on 31.03.2011
Rupee term loans banks secured	6970.204
Total	6970.204

Banking Relations :	--
Financial Institution:	IDBI Trusteeship Services Limited Asian Buliding, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India
Auditors :
Name :	Shah Gupta and Company Chartered Accountant
Address :	38, Bombay Mutual Building, 2nd Floor, Dr. D.N. Road, Fort, Mumbai - 400001, Maharashtra, India
PAN No.:	AAAFS7702F
Holding Company :	JSW Investments Private Limited CIN No.: U65993MH2005PTC152325
Fellow Subsidiary Company :	JSW Aluminium Limited CIN No.: U27203MH2005PLC154612 JSW Energy Investments Private Limited CIN No.: U65923MH2007PTC167960 JSW Green Private Limited CIN No.: U01117MH2007PTC216973 JSW Infrastructure Fintrade Private Limited CIN No.: U45206MH2010PTC203280 JSW Projects Limited CIN No.: U74999MH2006PLC163924 Sapphire Technologies Limited CIN No.: U72900MH2000PLC129020 South-West Mining Limited CIN No.: U85110KA1996PLC021242
Associates :	JSW Steel Limited CIN No.: L27102MH1994PLC152925 JSW Energy Limited CIN No.: L74999MH1994PLC077041 JSW Realty and Infrastructure Private Limited CIN No.: U02710MH2003PTC187132 JSW Severfield Structures Limited CIN No.: U28112MH2009PLC191045 Jsoft Solutions Limited CIN No.: U72200KA2006PLC040034

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Rs.10/- each	Rs.10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
301511700	Equity Shares	Rs.10/- each	Rs.3015.100 Millions

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		3015.100	2815.117	2332.117
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		965.900	473.001	184.013
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3981.000	3288.118	2516.130
LOAN FUNDS
1] Secured Loans		9661.900	6970.204	2750.000
2] Unsecured Loans		349.400	0.000	0.000
TOTAL BORROWING		10011.300	6970.204	2750.000
DEFERRED TAX LIABILITIES		180.200	120.469	90.472
TOTAL		14172.500	10378.791	5356.602
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1619.500	1386.203	1410.305
Capital work-in-progress		11740.900	8809.411	2440.271
INVESTMENT		284.200	24.183	1404.266
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	544.400	151.612	88.603
	Sundry Debtors	180.300	82.413	72.943
	Cash & Bank Balances	185.700	85.288	131.240
	Other Current Assets	2.500	0.000	0.000
	Loans & Advances	970.600	871.916	312.178
Total Current Assets		1883.500	1191.229	604.964
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	391.400	892.557	421.851
	Other Current Liabilities	915.100	113.433	72.973
	Provisions	49.100	26.245	8.380
Total Current Liabilities		1355.600	1032.235	503.204
Net Current Assets		527.900	158.994	101.760
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14172.500	10378.791	5356.602

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	2720.900
		Other Income	29.400
		TOTAL (A)	2750.300
Less	EXPENSES
		Cost of materials consumed	649.900
		Purchases of stock-in-trade	369.600
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	7.700
		Employee benefit expense	107.700
		Amortisation expense	1.600
		Other expenses	741.200
		Prior period items	7.700
		TOTAL (B)	1885.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		864.900
Less	FINANCIAL EXPENSES (D)		73.500
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		791.400
Less/ Add	DEPRECIATION/ AMORTISATION (F)		72.800
	PROFIT BEFORE TAX (E-F) (G)		718.600
Less	TAX (H)		226.600
	PROFIT AFTER TAX (G-H) (I)		490.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		470.500
	BALANCE CARRIED TO THE B/S		960.500
	Earnings Per Share (Rs.)		1.63

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	1624.246	1293.047
		Other Income	35.335	8.368
		TOTAL (A)	1659.581	1301.415
Less	EXPENSES
		Consumption materials changes inventories	616.835	553.277
		Manufacturing service costs	298.245	203.141
		Employee related expenses	61.543	65.976
		Administrative selling other expenses	92.615	65.119
		TOTAL (B)	1069.238	887.513
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		590.343	413.902
Less	FINANCIAL EXPENSES (D)		77.616	77.772
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		512.727	336.130
Less/ Add	DEPRECIATION/ AMORTISATION (F)		67.185	62.058
	PROFIT BEFORE TAX (E-F) (G)		445.542	274.072
Less	TAX (H)		158.997	90.255
	PROFIT AFTER TAX (G-H) (I)		286.545	183.817
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		184.013	0.196
	BALANCE CARRIED TO THE B/S		470.558	184.013
	Earnings Per Share (Rs.)		1.19	2.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	17.82	17.27	14.12
Net Profit Margin (PBT/Sales)	(%)	26.41	27.43	21.20
Return on Total Assets (PBT/Total Assets}	(%)	20.51	17.29	13.60
Return on Investment (ROI) (PBT/Networth)		0.18	0.14	0.11
Debt Equity Ratio (Total Debt/Networth)		2.51	2.12	1.09
Current Ratio (Current Asset/Current Liability)		1.39	1.15	1.20

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	No
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	Yes

UNSECURED LOAN

(Rs. In Millions)

	As on 31.03.2012
Deposits from others	349.400
Total	349.400

INDUSTRY OVERVIEW

After touching the decades lowest level of sales growth of less than 5% in Fiscal

2011, Indian cement industry started Fiscal 2012 with an expectation of brighter outlook and healthy demand growth. Inspite of challenging national economic scenario and slow down of industrial production, the cement industry put up a better performance witnessing growth of 6.50% on year on year basis.

Although the pace of capacity addition has slowed down, the industry is passing through substantial under utilization of capacity mainly on account of lower than expected demand growth, reduced spending in infrastructure projects by the Government and slowdown of reality sector due to high interest cost.

The cement sector witnessed major escalations in cost of key inputs including cost of imported coal. In the second half of the year, the coal prices slightly softened but depreciation of rupee against the dollar led to increase in fuel cost. Further, hike in oil prices and consistent inflationary pressure had negative impact on distribution cost and overheads. Besides, realisation was adversely impacted by 2% hike in excise duty announced in the Union Budget 2012.

Inspite of all the challenges, the Company ended the year with overall improved performance as highlighted herein below.

HIGHLIGHTS OF PERFORMANCE

Total production of Portland Slag Cement (PSC) and Ground Granulated Blast Furnace Slag (GGBS) during the year has increased by 28% to 6.96 Lac tonnes (PSC 3.83 Lac tones and GGBS 3.13 Lac tonnes) against production of 5.42 Lac tonnes (PSC 1.73 Lac tonnes and GGBS 3.69 Lac tonnes) in previous year.

Total sales volume of PSC and GGBS during the year has increased by 37 % to 7.01 Lac tonnes (PSC 3.89 Lac tonnes and GGBS 3.12 Lac tonnes) against 5.12 Lac tonnes (PSC 1.46 Lac tonnes and GGBS 3.66 Lac tonnes) sold in previous year.

Sale of Granulated Blast Slag (GBS) volume during the year has increased by 35% to 14.69 Lac tonnes against 10.91 Lac tonnes in previous year.

Total Revenue, Earnings Before Interest Depreciation and Tax (EBIDTA) and Profit After Tax (PAT) for the year was Rs. 2750.300 Millions, Rs. 866.500 Millions and Rs. 490.000 Millions respectively which shows a growth of 66%, 47% and 71% respectively as compared to previous year.

INDUSTRY OUTLOOK

The long term prospects for cement industry are favourable on account of strong economic growth fundamentals and the thrust provided by Government to the housing and infrastructure sectors in the 12th Five Year Plan period 2012-17.

Looking ahead, the business environment is expected to show steady improvement as Reserve Bank of India (RBI) has also taken cognizance of the slow-down in the economy and taken the first step towards reviving economic growth in the country by cutting interest rates.

In Fiscal 2013, the cement industry is likely to grow in line with the projected Gross Domestic Product (GDP) growth of around 7.0%. The residential demand will emanate from Government stimulus to various rural and affordable housing schemes, whereas the commercial demand will be driven by an increased spending in industrial and commercial segments. However, cement realisation and over all margin are expected to remain under pressure in all the regions on account of increase in input and distribution costs which are not showing any sign of abatement.

The Directors however remain confident that the industry is in a good position to face the challenges and pass on the cost increases to customers. Besides, healthy demand growth along with expected slowdown in capacity addition may lead to higher capacity utilization for cement manufacturers, thus providing room for margin improvement during Fiscal 2013.

With a view to conserve the internal accruals for utilization in expansion projects the Board of Directors have not recommended any dividend for the year on the equity share capital of the Company.

EXPANSION PLAN

After setting up and successful operation of ~0.70 million ton per annum (mtpa) grinding facility at Vijayanagar, Karnataka for production of Ground Granulated Blast Furnace Slag (GGBS) and Portland Slag Cement (PSC), the Company had embarked upon the second phase of growth for setting up a green field cement plant comprising of clinkerisation and cement grinding and blending facilities in the State of Andhra Pradesh for enhancing the cement manufacturing capacity to ~5.20 mtpa.

As per the implementation schedule, the above green field project was envisaged to be completed by December, 2011. However, due to break down of roller press gear box shaft during trial run and other teething problems being faced during stabilisation of post clinkerisation facilities viz. grinding, packaging and material handling facilities, the commissioning activities have been prolonged and the commercial operation is expected to commence shortly.

In next phase of expansion, the Company is initializing plans for setting up additional grinding facility at Vijayanagar, Karnataka for manufacturing of PSC/GGBS and Captive Power Plant at

Nandyal, Andhra Pradesh.

In addition to above, the Company is also looking for acquiring grinding facilities, mineral resources/ores across various regions in Indian geographical segments for expanding its business.

Bankers Charges Report as per Registry

Corporate identity number of the company	U26957MH2006PLC160839
Name of the company	JSW CEMENT LIMITED
Address of the registered office or of the principal place of business in India of the company	Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai – 400026, Maharashtra, India Email: amit.mundhe@jsw.in
This form is for	Creation of charge
Type of charge	Book debts Others (Current Assets mainly RM, WIP, Stores Spares etc.)
Particular of charge holder	IDBI Trusteeship Services Limited Asian Buliding, Ground Floor, 17, R.Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India Email: itsl@idbitrustee.co.in
Nature of instrument creating charge	Deed of Hypothecation dated June 30, 2012
Date of instrument Creating the charge	30.06.2012
Amount secured by the charge	Rs.1500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Floating rate of interest at the rate of 1% p.a. (including tenor premium of 0.50% p.a.) over the Bank's Base Rate (BR) p.a. subject to minimum of NIL% p.a. with monthly rests. Term of Payment: It is a cash credit facility. Margin 25% - Stocks (including Raw Material, WIP, Finished Goods, Stores & Spares, Consumables, Packing Materials, etc.) 25% - Book Debts (not exceeding 90 days) Extent and operation of the charge Charge created in favour of IDBI Trusteeship Services Limited, Security Trustee to secure working capital facilities of Rs. 1500.000 Millions
Short particulars of the property charged (Including location of the property)	The whole of the current assets mainly includes Raw Materials, Stock in process, Finished Goods, Stock in trade, Stores & Spares, Consumables, Packing Materials and Book Debts and Receivables.

FIXED ASSETS:

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer Equipments

Intangible Assets

• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No 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 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.54.88
UK Pound	1	Rs.83.54
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.