MIRA INFORM REPORT

Report Date :

05.02.2013

IDENTIFICATION DETAILS

Name :	ISMT LIMITED
Registered Office :	Lunkad Towers, Viman Nagar, Pune – 411014, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.09.1999
Com. Reg. No.:	25-016417
Paid Up Capital :	Rs.732.500 Millions
CIN No.: [Company Identification No.]	L27109PN1999LC016417
TAN No.: [Tax Deduction & Collection Account No.]	PNEI00099B
PAN No.: [Permanent Account No.]	AAACJ9917A
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturer and Exporter of Seamless Tubes.
No. of Employees :	2589 (Approximately) (In Office + In Factory)

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 23000000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. The company has recorded an increase in its sales turnover during 2012 but there appears continuous decline in its profits. However, trade relations are reported as decent. Business is active. Payments are reported as usually correct 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.

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	CRISIL
Rating	3/5
Rating Explanation	Fundamentals are good
Date	23.03.2012

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.

INFORMATION PARTED BY

Name :	Mr. Vinay
Designation :	Accounts Department
Contact No.:	91-20-66024901
Date :	04.02.2013

LOCATIONS

Registered Office :	Lunkad Towers, Viman Nagar, Pune – 411014, Maharashtra, India
Tel. No.:	91-20-66024901/ 66024905/ 41434100/ 41434101
Fax No.:	91-20-26630779
E-Mail :	legal@ismt.co.in dbhansali@ismt.co.in secretarial@ismt.co.in
Website :	http://www.ismt.co.in
Location :	Rented
Factory 1 (Tube) :	MIDC Industrial Area, Ahmednagar – 414111, Maharashtra, India
Tel. No.:	91-241-2777960/ 2777845/ 2777946
Fax No.:	91-241-2777363
Factory 2 (Tube):	MIDC Industrial Area, Baramati – 413133, India
Tel. No.:	91-2112-243861/65
Fax No.:	91-2112-243873
Factory 3 (Tube):	Structo Hydraulics AB Storfors, Swedan
Factory 4 (Steel) :	Jejuri – Morgaon Road, Jejuri – 412303, Maharashtra, India
Tel. No.:	91-2115-253335
Factory 5 (Power) :	Village Kurla, Warora, Chandrapur – 422910, Maharashtra, India

DIRECTORS

As on 31.03.2012

Name :	Mr. S C Gupta
Designation :	Chairman
Name :	Mr. A. K. Jain
Designation :	Director
Name :	Mr. J P Sureka
Designation :	Director
Name :	Mr. Gourishankar V
Designation :	Nominee Director (IDBI Nominee upto 05.06.2012)
Name :	Mr. K. K. Rai
Designation :	Director
Name :	Mr. B R Taneja
Designation :	Director
Name :	Mr. Vinod Sethi
Designation :	Director
Name :	Mr. Suresh Khatanhar
Designation :	Nominee Director (IDBI Nominee w.e.f. 06.06.2012)

KEY EXECUTIVES

Name :	Mr. Jayan Nair
Designation :	Company Secretary (upto 30.03.2012)
Name :	Mr. Nilesh Jain
Designation :	Company Secretary (w.e.f. 28.05.2012)
Name :	Mr. Salil Taneja
Designation :	Chief Executive Officer
Name :	Mr. Rajiv Goel
Designation :	Chief Financial Officer
Name :	Mr. Nirmal Chandra
Designation :	President (Projects and Product Development)
Name :	Mr. Vinay
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholder	Total No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4345216	2.97
Bodies Corporate	71362158	48.71
Sub Total	75707374	51.68
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	75707374	51.68
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	12694864	8.67
Financial Institutions / Banks	1993848	1.36
Foreign Institutional Investors	5689113	3.88
Sub Total	20377825	13.91
(2) Non-Institutions
Bodies Corporate	6823090	4.66
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	27714173	18.92
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	5396665	3.68
Any Others (Specify)	10482256	7.16
Non Resident Indians	3778765	2.58
Trust	6703491	4.58
Sub Total	50416184	34.41
Total Public shareholding (B)	70794009	48.32
Total (A)+(B)	146501383	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)	146501383	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl. No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Indian Seamless Enterprises Limited	5,55,33,788	37.91
2	Vishkul Leather Garments Private Limited	1,41,02,179	9.63
3	Misrilall Mines Private Limited	6,01,197	0.41
4	Tulika Estate And Holding Private Limited	5,43,023	0.37
5	Satya Leasing Company Limited	3,04,027	0.21
6	Prismo India Limited	2,10,772	0.14
7	Shentracon Finalease Private Limited	24,802	0.02
8	Misrilall Properties Private Limited	23,527	0.02
9	Shentracon Holdings Private Limited	18,543	0.01
10	Palatial Trading Private Limited	300	0.00
11	Ashok Kumar Jain HUF	21,58,632	1.47
12	Ashok Kumar Jain	4,47,145	0.31
13	Salil Baldev Taneja	2,34,040	0.16
14	B R Taneja	90,793	0.06
15	Jagdish Prasad Sureka	1,20,380	0.08
16	Tara Jain	6,63,035	0.45
17	Savitri Devi Sureka	99,386	0.07
18	Raj K Sureka	85,754	0.06
19	Ramesh Sureka	1,32,155	0.09
20	Sanjay Sureka	77,423	0.05
21	Alka P Mehta	73,473	0.05
22	Manju Banka	50,600	0.03
23	Aayushi Jain	41,424	0.03
24	Mini Sureka	20,450	0.01
25	Priti Sureka	20,213	0.01
26	Akshay Jain	10,313	0.01
27	Rohin Raj Sureka	10,000	0.01
28	Avishi Sureka	10,000	0.01
	Total	7,57,07,374	51.68

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	HDFC Trustee Company Limited - HDFC Equity Fund	9180031	6.27
2	East Coast Securities Limited	5012676	3.42
3	ISSAL Employee Welfare Fund	5000000	3.41
4	Life Insurance Corporation of India	1983208	1.35
5	ISMT Employees Welfare Fund	1471563	1.00
	Total	22647478	15.46

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	HDFC Trustee Company Limited - HDFC Equity Fund	9180031	6.27
	Total	9180031	6.27

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Seamless Tubes.

Products :

Products Description	Item Code No.
Hot Rolled Bars and Rods of Non Alloysteel	7214
Cast Rounds/ Hot Rolled	72247
Bars and Rods of Alloy Steel	7228
Seamless Tubes and Hollows	7304

Exports :

Products :

Finished Goods

Countries :

UK

Terms :

Selling :

Cheque

Purchasing :

Cheque

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity*	Actual Production
Seamless Hollows and Tubes	Tones	465000	167187**
Components and Spares, plugs and Dies Rolls and Nos. Mandrels	Nos.	10000	50720***
Cold Rolled Rings	Nos.	8000000	4021080
Steel Bars	Tones	350000	254070

Licensed capacities are not given, as the respective industries are de-licensed.

* The installed capacities as stated above are certified by the Management and relied upon by the Auditors.

** Captive consumption for the year 598 Tonnes (Previous Year 1000 Tonnes).

*** For Captive consumption within division.

GENERAL INFORMATION

No. of Employees :

2589 (Approximately) (In Office + In Factory)

Customers :

Wholesalers and Others (Factories)

Bankers :

• Industrial Development Bank of India Limited
• ICICI Bank Limited
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Indian Overseas Bank
• State Bank of India
• Andhra Bank
• IKB Deutsche Industrie Bank AG
• Handelsbanken- Sweden
• Axis Bank
• Central Bank of India
• Export - Import Bank of India
• IDBI Bank, Kalyani Nagar, Pune, Maharashtra, India

Contact No.: 91-20-66120368

Facilities :

Secured Loans :	As on 31.03.2012 Rs. in Millions	As on 31.03.2011 Rs. in Millions
Term Loan from Banks
- Rupee Loans	1318.600	2525.300
- Foreign Currency Loans	6484.400	3685.300
Long Term maturities of finance lease obligations	0.500	0.600
Working Capital Borrowings from Banks
- Rupee Loans	382.000	549.900
- Foreign Currency Loans	768.800	174.500
Total	8954.300	6935.600

Unsecured Loans :	As on 31.03.2012 Rs. in Millions	As on 31.03.2011 Rs. in Millions
Term Loan from Bank	300.000	0.000
Interest Free Incentive and sales Tax Loan	590.400	850.800
Total	890.400	850.800

Notes:

i) Term Loans of Rs. 1421.900 Millions (including current maturities of Rs. 367.800 Millions) (Previous year Rs. 1116.700 Millions including current maturities of Rs.617.800 Millions) are stipulated to be secured by a first charge ranking pari passu on the Company's immovable properties and movable fixed assets both present and future with other term lenders, excluding term loan lenders where exclusive charge on movable fixed assets as mentioned in clause (iii) has been stipulated and assets of captive power project of the Company located at Chandrapur district as mentioned in clause (v). These loans are further stipulated to be secured by a second charge ranking pari passu by way of hypothecation with other term lenders on the current assets ofthe Company on which the first pari passu charge is stipulated to be covered in favor of consortium banks

ii) Term Loans of Rs. 3934.500 Millions (including current maturities of Rs. 921.200 Millions) (Previous year Rs. 3437.300 Millions including current maturities of Rs. 850.300 Millions) are stipulated to be secured by a first charge ranking pari passu on the Company's immovable properties and movable fixed assets both present and future with other term lenders, excluding term loans lenders where exclusive charge on movable fixed assets as mentioned in clause (iii) has been stipulated and assets of captive power project of the Company located at Chandrapur district as mentioned in clause (v).

iii) Term Loans of Rs. 2138.900 Millions (including current maturities of Rs. 220.700 Millions) (Previous year Rs. 1954.100 Millions including current maturities ofRs.181.500 Millions) are stipulated to be secured by exclusive charge on the equipment finance. Out of above, term loan of Rs.893.00 Millions is further stipulated to be secured with the land appurtenant thereto.

iv) Term Loans of Rs. 251.800 Millions (including current maturities of Rs. 143.900 Millions) (Previous year Rs. 407.300 Millions including current maturities of Rs. 150.00 Millions) are stipulated to be secured by first charge on the entire fixed assets ranking pari passu with other term lenders excluding term loans lenders where exclusive charge on movable fixed assets as mentioned in clause (i) and (iv) has been stipulated.

v) Term Loans of Rs. 1447.900 Millions (including current maturities of Rs. 124.600 Millions) (Previous year Rs. 699.900 Millions) are stipulated to be secured by first charge ranking pari passu on the Company's immovable properties and movable fixed assets relating to captive power projects of the Company located in Chandrapur district.

vi) Term Loan of Rs. 386.200 Millions (including current maturities of Rs. Nil) (Previous Year Rs. 394.900 Millions) is secured by first charge ranking pari passu by hypothecation in respect of current assets of the Company present and future and are further secured by a second pari passu charge on the Company's immovable properties and all movable fixed assets both present and future

vii) Finance Lease Obligation is secured by Hypothecation of Assets taken under Finance Lease.

viii) Maturity Schedule

(Rs. In Millions)

Particulars	1-2 year	2-3 year	3-4year	Beyond 4 years
a) Terms Loan-from Banks (Secured Loan)	1899.600	2043.300	1244.200	2615.900
b) Terms Loan-from Banks (Unsecured Loan)	200.000	100.000	-	-
c) Sales Tax Loan	3.400	26.200	101.800	459.000

Financial Institutions :	IFCI Limited Life Insurance Corporation of India International Finance corporation (Washington)
Banking Relations :	-
Auditors 1 :
Name :	J. K. Shah and Company Chartered Accountant
Auditors 2 :
Name :	P. G. Bhagwat Chartered Accountant
Cost Auditors 1 :
Name :	Dhananjay V. Joshi and Associates Cost Accountants
Cost Auditors 2 :
Name :	Parkhi Limaye and Company Cost Accountants
Advocates and Solicitors :	Amarchand and Mangaldas and Suresh A Shroff and Company J Sagar Associates HSB Partners, Chennai Lindahi, Sweden
Associates:	Indian Seamless Enterprises Limited Indian Seamless Incorporated, USA Taneja Aerospace and Aviation Limited
Subsidiaries:	ISMT Enterprises SA, Luxemburg TRIDEN Port and power Company Private Limited, India Structo Hydraulics AB (Sweden) Structo (UK) Limited, Uk Structo Hydraulics India Limited (India) ISMT Europe AB (Sweden) Nagapattinam Energy Private Limited, Japan PT ISMT Resources, Indonesia

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
17,50,00,000	Equity Shares	Rs.5/- Each	Rs.875.000 Millions
	Unclassified Shares		Rs. 710.000 Millions
	Total		Rs. 1585.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14,65,01,383	Equity Shares	Rs.5/- Each	Rs.732.500 Millions

Notes:

The Company has only one class of issued shares having par value of Rs. 5 /- each. Holder of Equity Shares is entitled to one vote per share.

Proposed Dividend per Equity Share Rs. 0.75 (Previous Year Rs. 1.25)

The reconciliation of number of shares outstanding and the amount of share capital is set-out below.

Particulars	As at March 31, 2012
	Equity Shares Number	Rs. in Millions
Shares outstanding at the beginning of the year Shares issued during the year Shares bought back during the year Shares outstanding at the end of the year	14,65,01,383 - - 14,65,01,383	732.500 - - 732.500

The details of shareholders holding more than 5% shares.

Name of Shareholders	As at March 31, 2012
	No. of Shares held	% of Holding
Indian Seamless Enterprises Limited Vishkul Leather Garments Private Limited HDFC Trustee Company Limited - HDFC- Equity Fund	5,55,33,788 1,41,02,179 91,80,031	37.90% 9.63% 6.27%

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		732.500	732.500	732.500
2] Equity Share Warrants		0.000	0.000	0.000
3] Reserves & Surplus		5141.000	5454.500	5061.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5873.500	6187.000	5793.600
LOAN FUNDS
1] Secured Loans		8954.300	6935.600	7805.800
2] Unsecured Loans		890.400	850.800	2189.400
TOTAL BORROWING		9844.700	7786.400	9995.200
DEFERRED TAX LIABILITIES		752.300	752.200	416.900
TOTAL		16470.500	14725.600	16205.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11336.200	10898.700	6986.600
Capital work-in-progress		2929.700	2214.200	4886.100
INVESTMENT		499.700	499.700	357.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
Foreign Currency Monetary Item Translation Account		50.200	0.000	49.100
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4916.300	4486.000	3512.200
	Sundry Debtors	4117.500	4387.800	3388.900
	Cash & Bank Balances	899.800	677.900	623.700
	Other Current Assets	2194.100	1719.700	0.000
	Loans & Advances	1548.800	1154.100	2332.600
Total Current Assets		13676.500	12425.500	9857.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5917.500	5392.500	1222.100
	Other Current Liabilities	5884.700	5627.300	4420.500
	Provisions	219.600	292.700	306.400
Total Current Liabilities		12021.800	11312.500	5949.000
Net Current Assets		1654.700	1113.000	3908.400
MISCELLANEOUS EXPENSES		0.000	0.000	18.100
TOTAL		16470.500	14725.600	16205.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	19444.300	16477.000	11932.700
		Other Income	244.400	141.700	114.000
		TOTAL (A)	19688.700	16618.7	12046.700
Less	EXPENSES
		Cost of Materials Consumed	10000.700	7976.000
		Changes in Inventories of Finished Goods & Work-in-Progress	(392.600)	(552.500)
		Employee Benefits	1134.700	946.900
		Other Expenses	6291.200	5501.900
		Foreign Exchange (Gain)/Loss	315.200	25.800
		TOTAL (B)	17349.200	13898.100	9783.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2339.500	2720.600	2263.300
Less	FINANCIAL EXPENSES (D)		1207.900	905.600	786.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1131.600	1815.000	1476.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		845.000	855.400	564.400
	PROFIT BEFORE TAX (E-F) (G)		286.600	959.600	912.300
Less	TAX (H)		0.700	206.000	166.200
	PROFIT AFTER TAX (G-H) (I)		285.900	753.600	746.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	548.300	473.000
Less	APPROPRIATIONS
		Interim Dividend	NA	NA	0.000
		Proposed Dividend			146.500
		Tax on Interim Dividend			0.000
		Tax on Proposed Dividend			24.300
		General Reserve			500.000
	BALANCE CARRIED TO THE B/S		NA	NA	548.300
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4755.700	3049.500	1660.400
		Freight on Export	254.900	235.100	95.400
	TOTAL EARNINGS		5010.600	3284.600	1755.800
	IMPORTS
		Raw Materials	4269.200	3571.100	169.200
		Stores & Spares	477.600	492.000	419.300
		Capital Goods	253.200	81.900	169.200
	TOTAL IMPORTS		5000.000	4145.000	757.700
	Earnings Per Share (Rs.)		1.95	5.14	5.09

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	4695.600	3864.000
Total Expenditure	4300.900	3494.400
PBIDT (Excl OI)	394.700	369.600
Other Income	41.900	49.400
Operating Profit	436.600	419.000
Interest	373.000	385.900
Exceptional Items	0.000	(249.500)
PBDT	63.600	(216.400)
Depreciation	2198.500	236.900
Profit Before Tax	(155.900)	(453.300)
Tax	0.000	(171.200)
Provisions and contingencies	0.000	0.000
Profit After Tax	(155.900)	(282.100)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(155.900)	(282.100)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.46	4.53	6.19
Net Profit Margin (PBT/Sales)	(%)	1.47	5.82	7.65
Return on Total Assets (PBT/Total Assets}	(%)	1.15	4.11	5.42
Return on Investment (ROI) (PBT/Networth)		0.05	0.16	0.16
Debt Equity Ratio (Total Debt/Networth)		1.68	1.26	1.73
Current Ratio (Current Asset/Current Liability)		1.14	1.10	1.66

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particular	31.03.2012	31.03.2011	31.03.2010
Acceptance	4487.800	3992.100	1222.100
Other Trade Payables
i ) Micro, Small and Medium Enterprises	2.600	2.600
ii) Others	1427.100	1397.800
Total	5917.500	5392.500	1222.100

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	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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

During the year the Company registered incremental tube sales of 17,532 MT and incremental steel sales of 10,950 MT. After streamlining the new PQF capacity with the existing processes last year, this year the efforts were to increase the lot size so as to minimize downtime on account of size changes and further on Production Planning to optimize on available resources.

MANAGEMENT DISCUSSION AND ANALYSIS

The business environment remained challenging for 2011-12, with higher inflation and interest rates, volatile domestic currency, slowing global economic growth and Euro zone crisis. In this challenging year, the company has attained highest ever:

On back of increased manufacturing capacity, total revenue grew by 18%, however, the challenging economic environment, more specifically sluggish domestic demand, higher energy cost and volatile foreign exchange rate has impacted company's profitability During the year company posted total Revenue and PAT of Rs. 19690.000 Millions and Rs. 285.900 Millions respectively against Rs. 16620.000 Millions and Rs. 753.600 Millions reported last financial year. The aggressive marketing efforts in overseas markets led to over 52% rise in export sales which has now crossed Rs. 5000.000 Millions. Exports now accounts for over 38% of company's total tube sales against 31% last year.

The 40 MW captive power project undertaken to address the rising power cost, which accounts for company's second biggest cost element (at 11% of net sales) after raw material, is now operational. Nearly 80% of company's power requirement would be met by the captive plant. The Project is expected to result in much needed cost efficiencies through reduction in energy cost. With expanded capacities in place, the Company is well positioned to take advantage of the upturn in market as and when it happens. No major fresh capital expenditure is anticipated in the immediate future.

Continuing with the cost rationalisation exercise initiated last year at company's overseas subsidiary, Structo Hydraulics AB, the second draw bench from Sweden was shifted to India which is now fully operational. ISMT would now be supplying cold drawn tubes to Structo instead of hot finished tubes and in turn Structo would focus on value added hydraulic tubes and products. Further, it would enhance ISMT's product range for cold draw tubes enabling it to offer wider range of cold drawn tubes to its customers. Given the back drop of the continuing European crisis and the Cold draw bench shifting, Structo's performance was satisfactory.

Domestic Tube and Steel Sales grew by 8% while exports grew by 52%. While growth in domestic sales was largely on account of higher realisations, the growth in exports was led by growth in volumes.

Despite the challenging economic environment, the Company was able to sustain EBIDTA which dropped marginally to Rs. 2650.000 Millions. However, Profitability was impacted largely on account of FCCB redemption premium provisioning and foreign exchange volatility.

The focus during the year continued on adding new customers across major geographies and enhancing product portfolio through developing new products.

Absence of any decisive step by the Indian Government on imposing anti dumping duty on Chinese producers continues to impact domestic margins in some key sectors. The Company along with other major domestic manufacturers has initiated the process for levying safeguard duty.

SEGMENT / PRODUCT INFORMATION

The Company is engaged in manufacturing seamless tubes and engineering steels. Seamless tube accounted for 69% of ISMT's total external sales value while Steel accounted for 31%. Of the total steel billets sold, 59% of the steel in quantity terms was used captively to make tubes while 41% was sold to the external market With increase in tube volumes, company continued with its strategy to sell increasing volumes of value added steel billets to external market and outsourced commodity grade steel billets required for inhouse tube manufacturing. Accordingly higher quantity of ready steel billets were purchased during the year.

The increase in external billet purchase also contributed to increase in raw material cost as percentage to overall sales during the year to 51% from 46% for the previous year.

OUTLOOK

The overall outlook remains cautious with uncertain economic situation both domestically and internationally, volatile domestic currency and high inflation. The commencement of company's 40 MW Captive power plant along with gradual ramp up of the seamless tube capacity will lead to higher efficiencies and advantage of economies of scale.

CONTINGENT LIABILITY

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
a) Claims against the Company not acknowledged as debt
Sales Tax	121.700	121.700
Income Tax disputed by the Company	2.000	3.000
Excise Duty	385.000	312.900
Others	89.400	75.300
b) Corporate Guarantees	493.600	284.700
c) Bills discounted on behalf of third party	370.600	436.400

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2012

(Rs. In Millions)

Sr. No.	Particulars	Quarter Ended		Half Year ended
		30.09.2012	30.06.2012	30.09.2012
		Unaudited	Unaudited	Unaudited
PART-I
1	Gross Sales/ Income from Operations	6347.200	7242.400	13589.600
	Less :  Inter Segment Transfers	196.6.800	1995.500	3962.300
	Inter Division Transfers	383.300	375.400	758.700
	Excise Duty	311.200	382.500	693.700
	(a) Net Sales/ Income from Operations	368.5.900	4489.000	8174.900
	(b) Other Operating Income	178.100	206.600	384.700
	Total Income from Operations (a+b)	3864.000	4695.600	8559.600
2	Expenses
	(a) Consumption of Raw Materials	1531.100	2566.100	4097.200
	(b) Purchases of stock-in-trade	24.500	13.700	38.200
	(c) Changes in inventories of finished goods,       work-in-progress and stock-in-trade	176.300	(354.900)	(178.600)
	(d) Employee benefit expenses	292.000	284.400	576.400
	(e) Depreciation and Amortisation Expense	236.900	219.500	456.400
	(f) Other Expenses :
	(i) Energy	817.200	869.600	1686.800
	(ii)Other Direct Expenditure	593.200	668.500	1261.700
	(iii) Other Expenditure	60.100	62.000	122.100
	Total Expenses	3731.300	4328.900	8060.200
3	Profit from Operations before other income, finance costs and exceptional items (1-2)	132.700	366.700	499.400
4	Other Income	49.400	41.900	91.300
5	Profit from ordinary activities before finance costs and exceptional items ( 3+4)	182.100	408.600	590.700
6	Finance Costs	385.900	373.000	758.900
7	Profit from ordinary activities after finance costs but before exceptional items and foreign exchange( Gain)/ Loss( 5-6)	(203.800)	35.600	(168.200)
8	Exceptional items (Foreign Exchange (Gain)/ Loss)	249.500	191.500	441.000
9	Profit / (Loss) from ordinary activities before tax (7- 8)	(453.300)	(155.900)	(609.200)
10	Tax Expenses	(171.200)	-	(171.200)
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	(282.100)	(155.900)	(438.000)
12	Extraordinary items	-	-	-
13	Net Profit / (Loss) for the period after tax (11-12)	(282.100)	(155.900)	(438.000)
14	Paid-up Equity Share Capital (Face Value of Rs.5/- per share)	732.500	732.500	732.500
15	Reserves excluding Revaluation Reserves as per	-	-	-
	Balance Sheet of previous accounting year.
16	Earnings per share before extraordinary items
	Basic and Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised)	(1.93)	(1.06)	(2.99)
17	Earnings per share after extraordinary items
	Basic and Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised)	(1.93)	(1.06)	(2.99)
PART-II
A	SELECT INFORMATION FOR THE QUARTER ENDED 30th SEPTEMBER, 2012
	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of Shares	70764009	70764009	70764009
	Percentage of Shareholding	48.30%	48.30%	48.30%
2	Promoters and promoter group shareholding
	(a) Pledged / Encumbered
	Number of Shares	NIL	NIL	NIL
	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	75737374	75737374	75737374
	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 )	51.70%	51.70%	51.70%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	6
	Disposed of during the quarter	6
	Remaining unresolved at the end of the quarter	NIL

Notes:

1. The Company has adopted the Hedge Accounting policy and principles set out in Accounting Standard (AS -30) Financial Instruments Recognition and Measurement. During the quarter ended 30th September, 2012, the Company has carried Exchange Gain of Rs.693.900 Millions to Hedge Reserve Account and charged Exchange Loss of Rs.104.400 Millions to Profit and Loss Account from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 30th September, 2012 is Rs.144.700 Millions.

2. The Company has exercised the option as per Para 46 A inserted in the Accounting Standard ( AS-11) for treatment of exchange difference on long term monetary liabilities, other than covered under the Hedge accounting . Accordingly during the quarter ended 30th September, 2012, Exchange Gain capitalized is Rs.292.800 Millions and Exchange Gain recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs.25.700 Millions and Exchange Loss of Rs.1.200 Millions transferred to Profit and Loss Account from FCMITDA. Balance in FCMITDA as on 30th September, 2012 is Rs.60.800 Millions.

3. Based on the advice on treatment of Amalgamation Reserve created in terms of the Scheme of Arrangement, sanctioned by the Hon'ble High Court, Bombay, the Company has adjusted depreciation of Rs.16.800 Millions and Rs.33.600 Millions during current quarter and six months ended 30th September, 2012 respectively against the Amalgamation Reserve.

4. The insurance claim lodged during the quarter ended 30th September, 2011 has been accounted on accrual basis and a note to this effect was given in the previous year’s quarterly results. The limited review report has been qualified with respect to the said note and the Company expects that the said claim to be settled by the insurance Company without any material deviation.

5. The auditors have conducted a “Limited Review’’ of the financial results for the quarter ended 30th September, 2012.

6. The comparative figures are regrouped and reclassified to meet the current quarter's classification.

7. The above results were reviewed by the Audit committee and have been taken on record by the Board of Directors at their meeting held on 8th November, 2012.

FIXED ASSETS:

• Leasehold Land
• Freehold Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipment
• Vehicles
• Technical Know – How
• Software Development

PRESS RELEASE:

ISMT COMMENCES PRODUCTION AT ITS 40 MW CAPTIVE POWER PLANT

THE PLANT AIMS TO CATER TO OVER 80% OF ISMT’S POWER REQUIREMENT

29th May 2012

ISMT Limited has officially commissioned its 40 MW, thermal, coal based, captive Power Plant. Located at Chandrapur district (Maharashtra), the Power Plant was conceived to address the rising energy costs of the company. The plant commenced commercial production from 28th May 2012. The Power generated is wheeled using the state electricity grid to all three manufacturing plants located at Ahmednagar, Baramati and Jejuri. 

The captive plant will cater to over 80% of the company's power requirement, thereby helping the Company to substantially reduce its variable costs.

Elaborating on the benefits of the plant, ISMT’s CEO, Mr. Salil Taneja said “the commissioning of this plant significantly de-risks the operations of the company by hedging against the possibility of future increases in power cost by the Govt. of Maharashtra” 

CRISIL'S INDEPENDENT EQUITY RESEARCH RATES ISMT AS A COMPANY WITH 'GOOD FUNDAMENTALS' AND 'STRONG UPSIDE'

4th April 2012

CRISIL Research has assigned a CRISIL IER 5/5 on valuation grade indicating that the company has a very strong upside. The report also gives fundamental grade of 3/5 to ISMT Limited - indicating that the company's fundamentals are 'good' relative to other listed equity securities in India.

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.52.97
UK Pound	1	Rs.83.17
Euro	1	Rs.72.21

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--RESERVES	1~10	6
--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	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.