MIRA INFORM REPORT

Report Date :

13.04.2013

IDENTIFICATION DETAILS

Name :	MAHINDRA STEEL SERVICES CENTRE LIMITED
Registered Office :	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai - 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.01.1993
Com. Reg. No.:	11-070416
Capital Investment / Paid-up Capital :	Rs.139.536 Millions
CIN No.: [Company Identification No.]	U27100MH1993PLC070416
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19662G MUMM09201D
PAN No.: [Permanent Account No.]	AAACM4987H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged exclusively in the business of manufacturing, processing, sale etc. of Flat Rolled Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 2600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a joint venture between Mahindra Intertrade Limited and Metal One Corporation of Japan. It is a well established and reputed company having a good track record. Financially company appears to be strong. Liquidity position is good. The rating also take into consideration the strong linkages with its holding companies. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. In view of experience promoters the company can be considered normal for any business dealings

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 Bank Facilities = A+
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk
Date	April 2013

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 :	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai-400018, Maharashtra, India
Tel. No.:	91-22-24948131/24935185/86
Fax No.:	91-22-24980732/24951236
E-Mail :	sheth.bakul@mahindra.com
Website:	http://www.mahindrasteelservicescentre.com
Factory :	At and Post Kanhe, Taluka Vadgaon, Maval, District Pune-412106, Maharashtra, India
Tel. No.:	91-2114-255348/255368
Fax No.:	91-2114-255433

DIRECTORS

As on 30.07.2012

Name :

Mr. Zhooben Dossabhoy Bhiwandiwala

Designation :

Chairman

Address :

S-13, Cusrow Baug, Shahid Bhagat Singh Road, Colaba, Mumbai-400039, Maharashtra, India

Date of Birth/Age :

09.12.1959

Date of Appointment :

22.07.2010

Din No.:

00110373

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51900MH1988PTC046152	ALBERTVILLE EXPORTS PRIVATE LIMITED	Director	08-02-88	08-02-88	-	Dormant	NO
2	U22120MH1948PTC009314	THE INDIAN AND EASTERN ENGINEER COMPANY PRIVATE LIMITED	Additional director	10-08-09	20-01-92	-	Active	NO
3	U74140MH1992PLC066606	MAHINDRA AND MAHINDRA CONTECH LIMITED	Director	22-02-93	22-02-93	27-05-08	Active	NO
4	U74140MH1982PTC026770	PRUDENTIAL MANAGEMENT AND SERVICES PRIVATE LIMITED	Director	12-01-98	12-01-98	05-05-10	Active	NO
5	U51900MH1978PLC020222	MAHINDRA INTERTRADE LIMITED	Director	17-02-00	17-02-00	-	Active	NO
6	U74999MH1999PTC121254	MW COM (INDIA)PRIVATE LIMITED	Director	06-10-03	06-10-03	29-03-10	Active	NO
7	U30007MH1991PLC064368	BRISTLECONE INDIA LIMITED	Director	05-08-04	05-08-04	05-06-08	Active	NO
8	L27100MH1999PLC121285	MAHINDRA FORGINGS LIMITED	Director	19-05-06	28-04-06	-	Active	NO
9	U18101MH1995PLC095482	NBS INTERNATIONAL LIMITED	Director	28-09-07	15-11-06	29-10-08	Active	NO
10	U67120MH2007PLC168985	MAHINDRA STOKES HOLDING COMPANY LIMITED	Director	24-09-07	21-03-07	-	Amalgamated	NO
11	U74999MH1954PLC019908	MAHINDRA ENGINEERING AND CHEMICAL PRODUCTS LIMITED	Director	25-09-08	27-08-07	19-07-12	Active	NO
12	U52190MH2007PTC173762	MAHINDRA RETAIL PRIVATE LIMITED	Director	20-08-08	03-09-07	-	Active	NO
13	U74999MH1995PLC093447	TECPRO ASHTECH LIMITED	Additional director	05-11-07	05-11-07	05-01-08	Amalgamated	NO
14	U29130MH2004PTC168150	MAHINDRA GEARS AND TRANSMISSIONS PRIVATE LIMITED	Director	22-07-08	24-12-07	-	Active	NO
15	U27100MH2007PLC173636	MAHINDRA HINODAY INDUSTRIES LIMITED	Director	25-07-08	22-01-08	-	Active	NO
16	U29299MH1963PLC019745	MAHINDRA HINODAY INDUSTRIES LIMITED	Director	06-05-08	22-01-08	-	Amalgamated	NO
17	U63032MH2008PTC186581	MAHINDRA OCEAN BLUE MARINE PRIVATE LIMITED	Director	25-09-09	09-09-08	-	Active	NO
18	U67110MH2008PLC188837	RETAIL INITIATIVE HOLDINGS LIMITED	Director	11-12-09	11-12-08	16-08-11	Active	NO
19	U35911MH2008PLC185462	MAHINDRA TWO WHEELERS LIMITED	Director	12-08-09	12-12-08	-	Active	NO
20	U73100MH1995PTC124707	OWENS-CORNING (INDIA) PRIVATE LIMITED	Director	26-09-09	01-04-09	24-11-10	Active	NO
21	U63000MH2007PLC173466	MAHINDRA LOGISTICS LIMITED	Director	11-08-09	28-04-09	-	Active	NO
22	U29268MH2009PTC190702	DEFENCE LAND SYSTEMS INDIA PRIVATE LIMITED	Director	26-04-10	29-04-09	27-04-10	Active	NO
23	U27100MH2009PTC193205	MAHINDRA ELECTRICAL STEEL PRIVATE LIMITED	Director	29-09-10	10-06-09	-	Active	NO
24	U92190MH2008PLC178894	MUMBAI MANTRA MEDIA LIMITED	Director	30-09-10	29-03-10	-	Active	NO
25	U27100MH1993PLC070416	MAHINDRA STEEL SERVICE CENTRE LIMITED	Director	22-07-10	29-04-10	-	Active	NO
26	U65993MH2007PLC175649	MAHINDRA HOLDINGS LIMITED	Director	29-08-11	18-07-11	-	Active	NO
27	U55100DL2011PTC222498	EKATRA HOSPITALITY VENTURES PRIVATE LIMITED	Director	18-07-11	18-07-11	-	Active	NO
28	U74899DL1989PLC038453	M. A. R. K. HOTELS LIMITED	Director	30-09-11	30-09-11	-	Active	NO
29	U75144MH2012PTC231267	MAHINDRA DEFENCE NAVAL SYSTEMS PRIVATE LIMITED	Director	18-05-12	18-05-12	-	Active	NO
30	U75220MH2012PLC233889	MAHINDRA DEFENCE SYSTEMS LIMITED	Director	30-07-12	30-07-12	-	Active	NO
31	U40101MH2010PTC205236	MAHINDRA SOLAR ONE PRIVATE LIMITED	Additional director	27-09-12	27-09-12	-	Active	NO
32	U92412MH2011PTC224530	EPIC TELEVISION NETWORKS PRIVATE LIMITED	Nominee director	04-12-12	04-12-12	-	Active	NO

Name :

Mr. Harsh Kumar

Designation :

Managing Director

Address :

201, Ferndale, 12^th Road, Khar (West), Mumbai-400052, Maharashtra, India

Date of Birth/Age :

21.08.1954

Date of Appointment :

15.02.2012

Election Car No.:

WB/23/148/285702

Din No.:

00082621

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27100MH1993PLC070416	MAHINDRA STEEL SERVICE CENTRE LIMITED	Managing director	15-02-12	28-03-06	-	Active	NO
2	U51900MH1978PLC020222	MAHINDRA INTERTRADE LIMITED	Managing director	11-12-11	24-11-06	-	Active	NO
3	L99999MH1962PLC012542	MAHINDRA UGINE STEEL COMPANY LIMITED	Director	28-07-09	23-01-09	-	Active	NO
4	U27100MH2009PTC193205	MAHINDRA ELECTRICAL STEEL PRIVATE LIMITED	Director	29-09-10	10-06-09	-	Active	NO

Name :

Mr. Rajeev Dubey

Designation :

Director

Address :

1701, Mahindra Heights, 96, Tardeo Road, Mumbai-400034, Maharashtra, India

Date of Birth/Age :

03.04.1954

Date of Appointment :

24.07.2007

Din No.:

00104817

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51900MH1978PLC020222	MAHINDRA INTERTRADE LIMITED	Director	25-02-04	25-02-04	-	Active	NO
2	U74999MH2000PLC126610	OFFICEMART INDIA .COM LIMITED	Director	10-03-04	10-03-04	16-11-10	Active	NO
3	U65990MH1987PLC042609	MAHINDRA INSURANCE BROKERS LIMITED	Director	03-08-04	03-08-04	-	Active	NO
4	U64200MH1994PLC083996	MAHINDRA FIRST CHOICE WHEELS LIMITED	Director	01-12-04	01-12-04	-	Active	NO
5	L99999MH1962PLC012542	MAHINDRA UGINE STEEL COMPANY LIMITED	Director	20-10-06	20-10-06	23-01-09	Active	NO
6	U27100MH1993PLC070416	MAHINDRA STEEL SERVICE CENTRE LIMITED	Nominee director	24-07-07	08-11-06	-	Active	NO
7	U52190MH2007PTC173762	MAHINDRA RETAIL PRIVATE LIMITED	Director	20-08-08	03-09-07	-	Active	NO
8	U74990MH2007PLC174898	WALCHAND TALENTFIRST LIMITED	Director	21-04-08	31-12-07	-	Amalgamated	NO
9	U35999MH2008PLC180385	Mahindra First Choice Services Limited	Director	22-07-09	24-03-08	-	Active	NO
10	U91110MH2001NPL130853	MAGIC BUS INDIA FOUNDATION	Director	26-09-08	12-09-08	-	Active	NO
11	U92412MH2008PTC187927	MAHINDRA UNITED FOOTBALL CLUB PRIVATE LIMITED	Director	01-09-09	03-11-08	-	Active	NO
12	U27100MH2009PTC193205	Mahindra Electrical Steel Private Limited	Director	29-09-10	10-06-09	-	Active	NO
13	L65993MH1920PLC000791	WALCHAND PEOPLEFIRST LIMITED	Director	07-05-10	07-05-10	-	Active	NO
14	U74999MH1924NPL001128	BOMBAY CHAMBER OF COMMERCE AND INDUSTRY	Director	23-06-12	23-06-12	-	Active	NO

Name :

Mr. Naoki Setoguchi

Designation :

Director

Address :

A-35, Vasant Marg, New Delhi-110057, India

Date of Birth/Age :

16.07.1961

Date of Appointment :

03.09.2009

Din No.:

02121162

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27100MH1993PLC070416	MAHINDRA STEEL SERVICE CENTRE LIMITED	Director	03-09-09	25-07-08	-	Active	NO
2	U51909DL2007PTC165254	METAL ONE CORPORATION INDIA PRIVATE LIMITED	Director	04-04-12	19-12-08	-	Active	NO
3	U27205HR2010PTC041264	MANESAR STEEL PROCESSING (INDIA) PRIVATE LIMITED	Director	23-09-10	23-09-10	08-03-11	Active	NO
4	U28113TN2011PTC080233	INDIA METAL ONE STEEL PLATE PROCESSING PRIVATE LIMITED	Nominee director	19-07-11	19-07-11	27-03-12	Active	NO

Name :

Mr. Yoshihisa Miyamoto

Designation :

Director

Address :

A2303, Chuogaiku, Shinano-cho, Totsuka-k, Yokohama-shi, Kanagawa-2440801, Japan

Date of Birth/Age :

26.11.1962

Date of Appointment :

03.09.2009

Din No.:

02631904

KEY EXECUTIVES

Name :	Mr. Bakul Pranjivandas Sheth
Designation :	Company Secretary
Address :	B-104, Aum Darshan Apartments, Shankar Lane, Kandivali (West), Mumbai-400067, Maharashtra, India
Date of Birth/Age :	17.09.1954
Date of Appointment :	23.04.1999
Pan No.:	AALPS0967M
Election Car No.:	MT/09/44/0987381

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.07.2012

Names of Shareholders	No. of Shares
Mahindra Intertrade Limited, India	8511666
Mahindra Intertrade Limited, India jointly with Zhooben Dossabhoy Bhiwandiwala	1
Mahindra Intertrade Limited, India jointly with K. Chandrasekar	1
Mahindra Intertrade Limited, India jointly with Rajeev Dubey	1
Mahindra Intertrade Limited, India jointly with Jyoti Walunj	1
Mahindra Intertrade Limited, India jointly with S. Venkatraman	1
Mahindra Intertrade Limited, India jointly with Bakul P. Sheth	1
Mahindra Intertrade Limited, India jointly with Harsh Kumar	1
Metal One Corporation, Japan	5441894
Total	13953567

As on 30.07.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	39.00
Bodies corporate	61.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged exclusively in the business of manufacturing, processing, sale etc. of Flat Rolled Products.

Products :

Product Description	Item Code
Flat Rolled Product Cold Rolled	7209
Flat Rolled Product Hot Rolled	7208
Electrical Steel Sheets	7225

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Steel Blanks / Slit Coils	MT	60400	85675

Note:

· Installed Processing Capacity and actual quantity processed are in respect of slitting, shearing and leveling of steel coils.

· The Installed Processing Capacity varies in accordance with the product mix and is as certified by management. This has been relied upon by the auditors.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· Yes Bank Limited, 9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

· AXIS Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Rupee term loans from banks	77.778	0.000
Foreign currency term loans from banks	253.172	239.927
Short-term borrowings
Loans repayable on demand from banks	0.000	2.615
Total	330.950	242.542
The Company has a term loan of Rs.77.778 Millions which is secured by first hypothecation charge on the movable fixed assets of the Company situated at Kanhe, Maharashtra and second charge over the present and future current assets of the Company. The Company has taken buyers credit under sanction of LUT extended by AXIS bank, secured by first hypothecation charge on the movable fixed assets of the Company situated at Kanhe plant, Maharashtra and second charge over present and future current assets of the Company.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai - 400018, Maharashtra, India
PAN.:	AABFD7919A
Ultimate Holding Company :	Mahindra and Mahindra Limited (M and M)
Holding Company :	Mahindra Intertrade Limited (MIL)
Fellow Subsidiaries :	· Mahindra MiddleEast Electrical Steel Service Centre (FZC) (MME) · Mahindra Logistics Limited (MLL) · Mahindra Hinoday Industries Limited (MCPL) · Mahindra BPO Service Private Limited (MBPO) · Mahindra Electrical Steel Private Limited (MESPL) (Formely known as Mahindra Electrical Steel Limited) · Mahindra Ugine Steel Company Limited (MUSCO) · Mahindra Holidays and Resorts Limited (MHRL)
A Company having significant influence :	Metal One Corporation (MO)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13953567	Equity Shares	Rs.10/- each	Rs.139.536 Millions

Terms/rights attached to equity shares

The Company is having only one class of equity shares having par value of Rs. 10 each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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		139.536	139.536	97.675
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		533.002	476.759	320.898
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		672.538	616.295	418.573
LOAN FUNDS
1] Secured Loans		330.950	242.542	153.794
2] Unsecured Loans		167.519	54.019	36.552
TOTAL BORROWING		498.469	296.561	190.346
DEFERRED TAX LIABILITIES		76.540	51.439	43.905
TOTAL		1247.547	964.295	652.824
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1062.635	619.163	480.405
Capital work-in-progress		0.000	25.200	0.116
INVESTMENT		0.000	114.786	113.688
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	220.848	56.930	27.787
	Sundry Debtors	242.427	67.384	24.853
	Cash & Bank Balances	28.808	3.260	2.256
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	315.190	247.573	136.688
Total Current Assets		807.273	375.147	191.584
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	413.529	150.766	95.676
	Other Current Liabilities	197.591	13.892	20.397
	Provisions	11.241	5.343	16.896
Total Current Liabilities		622.361	170.001	132.969
Net Current Assets		184.912	205.146	58.615
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1247.547	964.295	652.824

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	973.822	748.646	20.862
		Income from Services Rendered (Gross)	0.000	0.000	118.934
		Other Income	2.330	2.543	15.305
		TOTAL (A)	976.152	751.189	155.101
Less	EXPENSES
		Cost of materials consumed	724.653	590.598
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(30.561)	(17.970)	76.813
		Employee benefit expense	39.376	31.588
		Other expenses	89.529	63.668
		TOTAL (B)	822.997	667.884	76.813
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		153.155	83.305	78.288
Less	FINANCIAL EXPENSES (D)		16.596	12.454	0.141
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		136.559	70.851	78.147
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.251	45.595	23.930
	PROFIT BEFORE TAX (E-F) (G)		82.308	25.256	54.217
Less	TAX (H)		26.065	7.534	18.200
	PROFIT AFTER TAX (G-H) (I)		56.243	17.722	36.017
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		181.338	163.616	141.027
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.900
		Dividend	0.000	0.000	1.784
		Tax on Dividend	0.000	0.000	10.744
	BALANCE CARRIED TO THE B/S		237.581	181.338	163.616
	EARNINGS IN FOREIGN CURRENCY
		Interest** [Capitalized during the year Rs. Nil (2010: Rs.0.684 Million)]	NA	2.802	0.749
		Exchange Loss / Gain (Net)* [Capitalized during the year Rs.6.698 Millions (2010: Rs.0.203 Million)]	NA	7.973	(0.203)
	TOTAL EARNINGS		NA	10.775	10.775
	IMPORTS
		Raw Materials	658.549	200.909	0.000
		Stores & Spares	0.440	26.555	0.411
		Plant & Machinery	203.458	95.371	165.252
	TOTAL IMPORTS		862.447	322.835	165.663
	Earnings Per Share (Rs.)		4.03	1.75	4.92

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.76	2.36	23.22
Net Profit Margin (PBT/Sales)	(%)	8.45	3.37	38.78
Return on Total Assets (PBT/Total Assets}	(%)	4.40	2.54	8.07
Return on Investment (ROI) (PBT/Networth)		0.12	0.03	0.13
Debt Equity Ratio (Total Debt /Networth)		0.74	0.48	0.77
Current Ratio (Current Asset/Current Liability)		1.30	2.21	1.44

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	Yes
34]	External Agency Rating, if available	Yes

Note:

The registered office of the company has been shifted from Mahindra Towers, Worli Road No. 13, Worli, Mumbai-400018, Maharashtra, India to the present address w.e.f. 24.10.2007.

OPERATIONS

During the year, demand from the Company’s automotive customers continued to be robust resulting in capacity utilization at near-peak level at the Kanhe facility. The transformer industry, however, continued to suffer from sluggish demand resulting in margins being under pressure. The Company’s Bhopal unit operated at a satisfactory capacity utilization level, and reported a marginal profit for the year.

Income for the year was Rs 976.152 Millions against Rs 751.189 Millions in the previous year. Profit before tax for the year was Rs 82.308 Millions against Rs 25.256 Millions in the previous year.

The Company’s Electrical Stampings facility was inaugurated on 28th February, 2012. This facility incorporates state-of-the-art technology with equipment sourced from some of the best suppliers across the globe: slitting line from Japan, stamping presses from Japan and Taiwan, and aluminium injection machine from Europe.

The plant is spread across 2,00,000 sq.ft., and is the only facility of its kind in the country with a presence across the complete value chain from steel through stampings.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Deferred payment liabilities	54.019	54.019
Short-term borrowings
Loans and advances from related parties	113.500	0.000
Total	167.519	54.019

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27100MH1993PLC070416
Name of the company	MAHINDRA STEEL SERVICE CENTRE LIMITED
Address of the registered office or of the principal place of business in India of the company	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai - 400018, Maharashtra, India sheth.bakul@mahindra.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10214119
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India niharika.mehta@hdfcbank.com
Nature of instrument creating charge	Supplemental Letter of Hypothecation of Stocks and Book debts dated 25th September, 2012.
Date of instrument Creating the charge	25.09.2012
Amount secured by the charge	Rs.280.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be communicated by bank from time to time. Terms of Repayment As may be communicated by bank from time to time. Margin 25% on Stocks and Book debts or such other margin as may be communicated by bank from time to time. Extent and Operation of the charge First pari passu charge on all Stocks and Book debts both present and future.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu charge on all Stocks and Book debts both present and future.
Date of instrument modifying the charge	15.06.2010
Particulars of the present modification	Pursuant to present modification HDFC Bank Limited has extended Buyers Credit limit of Rs.25.000 Millions (as a sub limit of existing LC limit) and incremental LC limit of Rs. 20.000 Millions by earmarking CC limit sanctioned to the company. However overall charge remains at Rs. 280.000 Millions.

FIXED ASSETS:

· Land and Land Improvement

· Building

· Office Equipments

· Furniture and Fixtures

· Vehicles

· Motor 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 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.54.44
UK Pound	1	Rs.83.78
Euro	1	Rs.71.33

INFORMATION DETAILS

Report Prepared by :

NTH

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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		54

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.