MIRA INFORM REPORT

Report Date :

18.07.2013

IDENTIFICATION DETAILS

Name :	MUKAND LIMITED (w.e.f. 23.03.1989)
Formerly Known As :	MUKAND IRON AND STEEL WORKS LIMITED
Registered Office :	Bajaj Bhavan, Jamnalai Bajaj Marg, 226 Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.11.0937
Com. Reg. No.:	11-002726
Capital Investment / Paid-up Capital :	Rs. 787.500 Millions
CIN No.: [Company Identification No.]	L99999MH1937PLC002726
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19254E
PAN No.: [Permanent Account No.]	AAACM5008R
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchange.
Line of Business :	Manufacturing, Marketing and Exporting of Iron and Steel Products.
No. of Employees :	2060 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 85000000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Exist
Comments :	Subject is an established company having a satisfactory track record. There appears some loss in the current year. However, net worth of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BB+ (Suspended)
Rating Explanation	Moderate risk of default
Date	23.01.2012

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4 (Suspended)
Rating Explanation	Minimal degree of safety and high credit risk
Date	23.01.2012

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. Umesh Josh
Designation :	Financial Controller
Contact No.:	91-22-21727500
Date :	17.07.2013

LOCATIONS

Registered Office :	Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai 400 021, Maharashtra, India
Tel. No.:	91-22-61216666 / 61216629
Fax No.:	91-22-22021174
E-Mail :	Investors_cell@mukand.com kjmallya@mukand.com mukandop@bom3.vsnl.net.in co.secretary@mukand.com info@mukand.com
Website :	www.mukund.com
Branch Office :	Located at : · Bangalore · Chennai · Delhi · Kolkata · Visakhapatnam
Factory 1 :	Thane-Belapur Road, Dighe, Kalwe, Thane - 400 605, Maharashtra, India
Tel. No.:	91-22-21727500/7700
Fax No.:	91-22-25348179
Factory 2 :	Ginigera, Karnataka 583 228, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Niraj Bajaj
Designation :	Chairman and Managing Director
Age :	31 Years
Qualification :	B.COM.,M.B.A. (HARVARD BUSINESS SCHOOL)
Name :	Mr. Rajesh V Shah
Designation :	Co-Chairman and Managing Director
Age :	35 Years
Qualification :	M.A.(CAMBRIDGE),M.B.A (CALIFORNIA),P.M.D. (HARVARD BUSINESS SCHOOL)
Name :	Mr. Dhirajlal S Mehta
Designation :	Board of Director
Name :	Mr. Suketu V Shah
Designation :	Joint Managing Director
Age :	30 Years
Qualification :	B.COM.(HONS.),M.B.A. (HARVARD BUSINESS SCHOOL)
Name :	Mr. Vinod S Shah
Designation :	Board of Director
Name :	Dr. N P Jain, IFS (Retd.)
Designation :	Board of Director
Name :	Mr. Narendra J Shah
Designation :	Board of Director
Name :	Mr. N C Sharma
Designation :	Board of Director
Name :	Mr. Prakash V Mehta
Designation :	Board of Director
Name :	Mr. Pradip P Shah
Designation :	Board of Director
Name :	Mr. Amit Yadav
Designation :	Board of Director

KEY EXECUTIVES

Name :	Mr. K J Mallya
Designation :	Company Secretary
The Management Team :	Corporate
Name :	Mr. Niraj Bajaj
Designation :	Chairman and Managing Director
Name :	Mr. Rajesh V Shah
Designation :	Co-Chairman and Managing Director
Name :	Mr. Suketu V Shah
Designation :	Joint Managing Director
Name :	Mr. S B Jhaveri
Designation :	Chief Financial Officer
	Steel Division
Name :	Mr. A M Kulkarni
Designation :	Chief Executive (Steel Plant, Thane)
Name :	Mr. R Sampath Kumar
Designation :	Chief Executive (Steel Plant, Ginigera)
Name :	Mr. C H Sharma
Designation :	Technical Advisor, Stee
Name :	Mr. Sidharth Shah
Designation :	Chief of Materials Management
Name :	Mr. V M Mashruwala
Designation :	Chief of Marketing (Alloy & Stainless Steel)
	Industrial Machinery Division
Name :	Mr. R Jagannathan
Designation :	Chief Executive

SHAREHOLDING PATTERN

AS ON: 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12584609	17.21
Bodies Corporate	26600258	36.38
Sub Total	39184867	53.59
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	39184867	53.59
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6007	0.01
Financial Institutions / Banks	101439	0.14
Insurance Companies	7244583	9.91
Foreign Institutional Investors	908621	1.24
Sub Total	8260650	11.30
(2) Non-Institutions
Bodies Corporate	9633903	13.18
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	9939481	13.59
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5651079	7.73
Any Others (Specify)	444149	0.61
Clearing Members	87273	0.12
Non Resident Indians	356876	0.49
Sub Total	25668612	35.11
Total Public shareholding (B)	33929262	46.41
Total (A)+(B)	73114129	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)	73114129	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)			Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Rahul Bajaj	1,01,822	0.14	0	0.00	0.00	0.14
2	Niraj Bajaj	17,49,641	2.39	0	0.00	0.00	2.39
3	Rajesh V Shah	36,44,642	4.98	3644642	100.00	4.98	4.98
4	Suketu V Shah	36,47,668	4.99	2678294	73.42	3.66	4.99
5	Sanjivnayay Bajaj	787	0.00	0	0.00	0.00	0.00
6	Shekhar Bajaj	33,047	0.05	0	0.00	0.00	0.05
7	Madhur Bajaj	3,100	0.00	0	0.00	0.00	0.00
8	Ruparani Bajaj	200	0.00	0	0.00	0.00	0.00
9	Anant Bajaj	43,200	0.06	0	0.00	0.00	0.06
10	Sunaina Kejriwal	363	0.00	0	0.00	0.00	0.00
11	Suman Jain	3,744	0.01	0	0.00	0.00	0.01
12	Viren J Shah	18,352	0.03	0	0.00	0.00	0.03
13	Narendrakumar J Shah	99,605	0.14	0	0.00	0.00	0.14
14	Anjana K Munsif	12,282	0.02	0	0.00	0.00	0.02
15	Jyoti Shah	21,117	0.03	0	0.00	0.00	0.03
16	Bansri Rajesh Shah	6,15,586	0.84	615586	100.00	0.84	0.84
17	Czaee Sukumar Shah	5,51,882	0.75	0	0.00	0.00	0.75
18	Priyaradhika Rajesh Shah	4,80,023	0.66	480023	100.00	0.66	0.66
19	Kaustubh Rajesh Shah	48,000	0.07	48000	100.00	0.07	0.07
20	Bajaj Auto Employees Welfare Funds	11,22,796	1.54	0	0.00	0.00	1.54
21	Shekharkumar Ramkrishnaji Bajaj	60,711	0.08	0	0.00	0.00	0.08
22	Surendra Bhaichand Jhaveri (Mukand EWF)	3,26,041	0.45	0	0.00	0.00	0.45
23	Akhil Investments and Traders Private Limited	260	0.00	0	0.00	0.00	0.00
24	Bachhraj & Company Private Limited	16,75,346	2.29	0	0.00	0.00	2.29
25	Bachhraj Factories Private Limited	6,89,084	0.94	0	0.00	0.00	0.94
26	Bajaj Holding & Investment Limited	40,56,782	5.55	0	0.00	0.00	5.55
27	Bajaj Sevashram Private Limited	12,50,080	1.71	0	0.00	0.00	1.71
28	Baroda Industries Private Limited	3,616	0.00	0	0.00	0.00	0.00
29	Jamnalal Sons Private Limited	1,31,47,761	17.98	3869090	29.43	5.29	17.98
30	Jeewan Limited	47,85,369	6.55	3688336	77.08	5.04	6.55
31	Mukand Engineers Limited	6,81,200	0.93	681200	100.00	0.93	0.93
32	Niraj Holdings Private Limited	500	0.00	0	0.00	0.00	0.00
33	Sidya Investments Limited	1,60,000	0.22	0	0.00	0.00	0.22
34	Valiant Investments & Trades Private Limited	260	0.00	260	100.00	0.00	0.00
35	Bahar Mercantile Limited	1,50,000	0.21	0	0.00	0.00	0.21
	Total	3,91,84,867	53.59	15705431	40.08	21.48	53.59

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	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	7228076	9.89	9.89
2	Shinano Retail Private Limited	3579056	4.90	4.90
3	Rakesh Sajjan Gupta	1463130	2.00	2.00
4	Fusion Investments and Financial Services Private Limited	806180	1.10	1.10
5	Clsa Mauritius Limited	796036	1.09	1.09
	Total	13872478	18.97	18.97

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	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	7228076	9.89	9.89
	Total	7228076	9.89	9.89

BUSINESS DETAILS

Line of Business :

Manufacturing, Marketing and Exporting of iron and steel products.

Products :

Product Description	ITC Code
Bars and rods of Alloys Steel	7228 30 29
Bars and rods, coils, Other Alloy Steel (CHQ)	7227 90 40
Bars, Rods Hot Rolled Coils of Stainless Steel Nickel Chrome Austenitic Type	7221 00 12
Overhead Traveling Crane on Fixed Support	8426 11 00

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bars, Rods and Coils of Special and Alloy Steel and Stainless Steel	Tonnes	640000#	342024**
Electrical Energy (Captive Power Generation)  At Dighe – Fuel Oil based At Ginigera – Gas Based	Tonnes	22.10 M.W. 15.00 M.W.	82.70 Million KWH 6.67 Million KWH
Semi Finished Billets and Blooms	Tonnes	970000##	565413@@

Note :

** Steel production includes 5,334 Tonnes (7,591 Tonnes) converted outside.

@@ Includes 204,301 Tonnes (182,857 Tonnes) converted from customers’ material.

# Installed capacity of Bar Rods and Coils includes 140,000 Tonnes of installed capacity from Ginigera plant allotted for products of Mukand Limited under Strategic Alliance Agreement with Kalyani Steels Limited

## Installed capacity of Semi Finished Billets and Blooms at Ginigera of 700,000 Tonnes, includes 289, 660 Tonnes of capacity allotted for products of Kalyani Steels Limited under Strategic Alliance Agreement.

GENERAL INFORMATION

Customers :

Original equipment manufacturers (OEMs)

· Motor Industries Company Limited

· SKF India Limited

· Maruti Udyog Limited

· Delphi Automotive Systems Limited.

· Bajaj Auto Limited

· Sona Koyo Stearing Systems Limited

· Honda Motor Cycle and Scooter India Private Limited

· Hi-Tech Gears Limited

· Sundram Fasteners Limited

· Hero Honda Motors Limited

Government sector in India

· Steel Authority of India Limited

· National Aluminium Company Limited

· Bharat Heavy Electricals Limited

· State Electricity Boards

· Nuclear Power Corporation Limited

· National Thermal Power Corporation Limited

· National Hydro Power Corporation Limited

· Indian Space Research Organisation

· Defence Research and Development Organisation

Non - government sector in India

· Tata Group of companies

· Larsenand Toubro Limited

· Hindustan Aluminium Limited

· Sterlite/Bharat Aluminium Company Limited

· Loesche India

· Ispat Industries

· Essar Group

·Birla Copper

No. of Employees :

2060 (Approximately)

Bankers :

• Allahabad Bank
• ABN Amro Bank N.V.
• Bank of Baroda, Khand Bazar
• Dena Bank
• Bank of India, Fort Branch, Mumbai
• HDFC Bank Limited
• Indian Overseas Bank
• IDBI Bank, Nariman Point Branch, Mumbai
• ICICI Bank Limited, Backbay Reclamation Branch, Mumbai, Maharashtra, India
• Punjab National Bank
• State Bank of India

· Axis Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Debentures	387.200	456.900
Term Loans :
- From Banks	4140.600	5302.200
- From Financial Institution	1558.600	1818.100
- From Others	440.300	181.800
SHORT-TERM BORROWINGS
Working Capital Loan From Banks	5909.800	3951.200
Total	12436.500	11710.200

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Subsidiaries :	· Mukand Global Finance Limited. · Mukand International Limited (MIL) · Vidyavihar Containers Limited. (VCL) · Mukand Vijayanagar Steel Limited. · Mukand International FZE (MIFZE) w.e.f. 09.01.2011
Step-down Subsidiary:	· Mukand International FZE (MIFZE) up to 08.01.2011
Other related parties where control exists :	· Mukand Engineers Limited. (MEL) · Bombay Forgings Limited. (BFL) · Stainless India Limited. (SIL) · Hospet Steels Limited. (HSL) · Kalyani Mukand Limited. · Lineage Investments Limited. · Catalyst Finance Limited. · Econium Investments and Finance Limited. · Fusion Investments and Financial Services Limited. · Primus Investments and Finance Limited. · Conquest Investments and Finance Limited. · Jamnalal & Sons Private Limited. (JSPL).
Joint Ventures :	· Mukand Vini Mineral Limited. (MVML), · Bekaert Mukand Wire Industries Private. Limited. (up to 28.03.2011).

CAPITAL STRUCTURE

After: 13.08.2012

Authorised Capital : Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.787.404 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
118000000	Equity Shares	Rs.10/- each	Rs.1180.000 Millions
7000000	Preference Shares	Rs.10/- each	Rs. 70.000 millions
	Total		Rs.1250.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
73159805	Equity Shares	Rs.10/- each	Rs.731.599 millions
5626320	0.01% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.56.263 millions
	Total		Rs.787.862 millions

Subscribed & Paid-up

No. of Shares	Type	Value	Amount
73114129	Equity Shares	Rs.10/- each	Rs.731.141 millions
	Add: Forfeited Shares, amounts originally paid up		Rs. 0.100 million
5626320	0.01% Cumulative Redeemable Preference Shares fully paid up	Rs.10/- each	Rs.56.263 millions
	Total		Rs.787.504 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	787.500	787.500
(b) Reserves & Surplus	20470.800	21449.700
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	21258.300	22237.200
(3) Non-Current Liabilities
(a) long-term borrowings	7741.900	8900.900
(b) Deferred tax liabilities (Net)	0.000	146.500
(c) Other long term liabilities	122.600	44.900
(d) long-term provisions	284.900	242.100
Total Non-current Liabilities (3)	8149.400	9334.400
(4) Current Liabilities
(a) Short term borrowings	8405.500	5769.900
(b) Trade payables	7327.200	6253.100
(c) Other current liabilities	4387.000	4070.100
(d) Short-term provisions	45.300	163.500
Total Current Liabilities (4)	20165.000	16256.600
TOTAL	49572.700	47828.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	23896.500	24317.100
(ii) Intangible Assets	4.700	4.800
(iii) Capital work-in-progress	1042.200	236.500
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1096.700	1096.700
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1228.800	926.800
(e) Other Non-current assets	482.800	482.800
Total Non-Current Assets	27751.700	27064.700
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	9963.100	9251.600
(c) Trade receivables	8769.800	8703.500
(d) Cash and cash equivalents	786.900	1043.800
(e) Short-term loans and advances	2271.800	1735.200
(f) Other current assets	29.400	29.400
Total Current Assets	21821.000	20763.500
TOTAL	49572.700	47828.200

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		787.520
2] Share Application Money		0.000
3] Reserves & Surplus		17724.792
4] (Accumulated Losses)		0.000
NETWORTH		18512.312
LOAN FUNDS
1] Secured Loans		13341.920
2] Unsecured Loans		3489.719
TOTAL BORROWING		16831.639
DEFERRED TAX LIABILITIES		0.000
TOTAL		35343.951
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20259.863
Capital work-in-progress		1218.209
INVESTMENT		1061.762
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7711.636
	Sundry Debtors	7438.974
	Cash & Bank Balances	1018.259
	Other Current Assets	0.000
	Loans & Advances	3740.247
Total Current Assets		19909.116
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2470.766
	Other Current Liabilities	3922.394
	Provisions	748.255
Total Current Liabilities		7141.415
Net Current Assets		12767.701
MISCELLANEOUS EXPENSES		36.416
TOTAL		35343.951

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	25911.100	25486.500	19817.178
		Other Income	25.100	504.100	312.215
		TOTAL (A)	25936.200	25990.600	20129.393
Less	EXPENSES
		Cost of Material Consumed	13942.100	13791.400	8633.189
		Changes in inventories of finished goods and work in progress	(445.200)	(1694.200)	9329.079
		Employee Benefit Expenses	1318.500	1254.700	447.919
		Other Expenses	9772.800	9741.200	[10.645]
		Expenditure transfer to capital account / Capital work in progress [including Trial Run Expenditure (net)]	(44.100)	(19.800)	[1041.091]
		TOTAL (B)	24544.100	23073.300	17358.451
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1392.100	2917.300	2770.942
Less	FINANCIAL EXPENSES (D)		1818.700	1626.400	1515.462
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(426.600)	1290.900	1255.480
Less/ Add	DEPRECIATION/ AMORTISATION (F)		657.200	678.100	635.462
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(1083.800)	612.800	620.018
Less	TAX (H)		(148.800)	(146.200)	0.625
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(935.000)	466.600	619.393
	Prior Period Adjustments (net)		N.A	(0.070)	(0.641)
	Excess/ (Short) provision for tax		N.A	0.282	1.174
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		302.359	300.629	0.000
			N.A
Less	APPROPRIATIONS
		Transferred from Debenture Redemption Reserve	N.A	62.500	125.000
		Transferred to Debenture Redemption Reserve	N.A	(22.356)	(58.750)
		Proposed Preference Dividend	N.A	(0.006)	(0.006)
		Proposed Equity Dividend	N.A	(73.114)	(73.114)
		Tax on Preference/ Equity Dividend	N.A	(11.862)	(12.427)
		Transfer to General Reserve	N.A	(420.000)	(300.000)
	BALANCE CARRIED TO THE B/S		(632.641)	302.359	300.629
	EARNINGS IN FOREIGN CURRENCY
		Export (FOB)	2169.500	1535.369	770.560
		Income from engineering contracts	0.000	0.000	0.000
		Dividends	2.300	11.405	18.169
		Others	4.700	20.081	1.364
	TOTAL EARNINGS		2176.500	1566.855	790.093
	IMPORTS
		Raw Materials	3834.500	4684.074	3604.911
		Stores, Spare Parts, Components and Fuel	615.900	538.177	491.210
		Goods for trade	0.000	63.028	0.582
		Capital Goods	424.500	15.914	14.679
	TOTAL IMPORTS		4874.900	5301.193	4111.382
	Earnings Per Share (Rs.)		12.79	6.38	8.48

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	6275.500	5254.400	4637.400	5191.700
Total Expenditure	6166.800	5212.400	4259.500	4713.400
PBIDT (Excl OI)	108.700	42.000	377.900	478.300
Other Income	07.500	93.000	37.900	89.700
Operating Profit	116.200	135.100	415.800	568.000
Interest	496.600	498.700	532.600	625.900
Exceptional Items	0.000	1083.300	0.000	0.000
PBDT	(380.400)	719.600	(116.800)	(57.900)
Depreciation	158.700	159.300	158.400	165.100
Profit Before Tax	(539.100)	560.300	(275.200)	(223.000)
Tax	(162.300)	162.300	(82.400)	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(376.800)	398.000	(192.800)	(223.000)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(376.800)	398.000	(192.800)	(223.000)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.60	1.80	3.07
Net Profit Margin (PBT/Sales)	(%)	4.18	2.40	3.13
Return on Total Assets (PBT/Total Assets}	(%)	(2.28)	1.32	1.54
Return on Investment (ROI) (PBT/Networth)		(0.05)	0.03	0.03
Debt Equity Ratio (Total Liability/Networth)		0.76	0.66	0.91
Current Ratio (Current Asset/Current Liability)		1.08	1.25	2.78

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2012	31.03.2011	31.03.2010
Current maturities of long-term debt	2665.100	2790.600	Not Available
Total	2665.100	2790.600	Not Available

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	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

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	WPST/20016/2011	Failing Date:-	29/07/2011	Reg. No.:-	WP/7373/2011	Reg. Date:-	07/09/2011
		Main Matter
Stamp No.:-	WPST/20016/2011		Reg. No.:-	WP/7373/2011
Petitioner:-	MUKUND KAMGAR UNION KURLA		Respondent:-	MUKAND LIMITED
Petn.Adv:-	Ranjana Todankar
District:-	Mumbai
Bench:-	Single
Status:-	Admitted(Unready)		Stage:-	FOR ADMISSION - FRESH [CIVIL SIDE MATTERS]
Last Date:-	05/03/2012
Last Coram:-	HON'BLE SHRI JUSTICE G. S. GODBOLE
Act:-	Industrial Dispute Act, 1947.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
a) Fixed Deposits	1196.600	1118.700
b) Sales tax Deferment Loans	18.600	23.200
SHORT-TERM BORROWINGS
c) Short term loan from companies	2495.700	1818.700
Total	3710.900	2960.600

GROSS SALES, SERVICES AND OTHER INCOME:

The gross sales from the operations and other income for the year was at Rs.28280.000 millions as against Rs.2840.000million in the previous year.

Revenues from exports rose by over 41% at Rs.2169.500 millions during the year as against Rs.1535.400 millions in the previous year.

PERFORMANCE:

During the year, the loss after writing back deferred tax was Rs.935.000 millions as against the profit after tax of Rs.466.600 millions for the previous year

The loss was mainly on account of lower iron ore supply consequent to the banning of mining and transport of iron ore in some of the districts in Karnataka.

The salient features of the operating performance in each segment during the year are discussed in the following paragraphs.

SPECIALTY STEEL DIVISION:

The net sales of alloy, special and stainless steel long products were at Rs.22910.000 millions compared to Rs.2240.000 million in the previous year. Increase in selling prices and improved product mix enabled the company to maintain its turnover similar to that of the previous year. However, the sales in volume declined due to the paucity of iron ore in the state of Karnataka where the company operates one of its steel making facilities.

Input prices rose during the year. Iron ore prices increased by over 60%, crude oil prices moved up by more than 25%. The power generation from the captive power plant at Dighe, Thane, Maharashtra became uneconomical and the company had to resort to purchase of power from Maharashtra State Electricity Distribution Company (MSEDC) at higher cost. The Indian Rupee depreciated by 22.5% during the year and thus, negatively impacted the costs of imported raw-materials and equipment. Indian Rupee is likely to depreciate further in 2012-13.

IRON ORE SUPPLY:

The supply of iron ore from the iron ore rich mines in the state of Karnataka has become scarce since last two years, especially in the year under report.

Further, consequent to the Karnataka Lokayukta Report and Petition filed in the Honorable Supreme Court, alleging illegal mining, encroachment of forest areas and other related charges, the apex court suspended mining operations, transportation and sale of iron ore in Bellary District in July 2011 and subsequently, in Tumkur and Chitradurga Districts out of 166 mines in the three districts of Karnataka.

In September 2011, the Hon’ble Supreme Court permitted transportation and sale of existing stocks of iron ore available with mines and stockyards and also permitted mining operations in only the two mines of National Mineral Development Corporation (NMDC). To-date, the industry currently depends exclusively on e-auctions conducted by the Monitoring Committee of the stock as mentioned and from the ongoing production of the two NMDC mines. This does not meet the industry’s demand.

The ban on mining and transportation in July 2011, forced the company to close down its steel making facility in Hospet, Karnataka for 35 days. The commencement of e-auctions of iron ore enabled the company to restart its Karnataka operations initially to 40% of its capacity and gradually improve it to 75%.

After strenuous efforts by the user industry and others, the Honorable Supreme Court has permitted category ‘A’ mines to reopen after getting approval of their Reclamation and Rehabilitation plans and complying with other conditional ties. It is expected that category ‘A’ mines will open by July 2012 and ‘B’ category mines by September 2012. The Honorable Supreme Court appointed Central Empowered Committee to categorize 166 mines in Karnataka into ‘A’, ‘B’ and ‘C’ category mines depending on the level of violations, if any.

Due to rising input costs, the company had to raise its selling prices in the month of October 2011. Unfortunately, increases in selling prices were lower than the increase in input costs. Moreover, the company expects its prices to continue to be under pressure due to increase in supply emanating from expansion in capacities by existing players, entry of new players in the alloy steel market and cheaper imports. Therefore, further rise in input prices may not be recovered by increase in selling price.

The auto industry grew by 12 per cent per annum in the year under report and is expected to continue this growth in the year in progress. This strong outlook in the growth of user industry is however currently faced with short-term challenges in the form of inflation, high interest rates, uncertainty of fuel prices and rising tax burden.

The company’s continuous Endeavour to tap new markets has resulted in higher exports and the company plans to enhance the same in the year FY 2012-13.

The sales in volume and value of stainless steel products too rose during the year under report. The company has plans to improve the sales in this segment with the introduction of new value added products.

INDUSTRIAL MACHINERY DIVISION:

At the beginning of the year, the Division had orders on hand amounting to Rs.3610.000 millions. However, by the end of the year, the division was unable to achieve higher turnover as many of the major customers, particularly, in the steel sector, delayed their projects which in turn delayed the placement of new orders during the year. This had the effect of marginally reducing the turnover of the division at Rs.2530.000 millions as compared to Rs.2660.000 millions in the previous year. At the end of the year the division had orders aggregating to Rs.2750.000 millions on hand.

Some of the major equipment manufactured and commissioned by the division in 2011-12 include, Level luffing traveling tower crane for a large shipyard, Electrical level luffing cranes for ports, Rotating trolley cranes for a steel plant, EOT cranes of more than 100 tonne lifting capacity, Large capacity ladles and ladle transport cars for a steel plant in co-operation with Siemens VAI. The division is also gearing for the development and manufacture of new equipment to widen its market.

The Division expects to book several new orders in the first quarter of 2012-13 thereby ensuring that there is adequate order book for execution in the next three quarters of the year in progress. The actual sales would however depend on the movement of finished goods for the steel sector where the progress of projects unfortunately continues to be slow. The Division is making all efforts to book export orders to increase the share of exports of cranes and process equipment.

MANAGEMENT DISCUSSION AND ANALYSIS

The year under report experienced turmoil in most of the global economies in Europe and America. However, the Indian economy was not adversely affected by this crisis although some signs of a downturn are visible in the current year. The International Monetary Fund has projected India to be the second-fastest-growing major economy after China.

PERFORMANCE:

Despite maintaining its turnover, the company recorded a loss in the year that has been. Scarcity of iron ore, a major input for steel making and its rising cost, depreciation of the rupee resulting in higher costs of imports, escalating fuel and interest costs, inflation and slow growth in the economy have all had a negative impact on the performance of the company.

STEEL:

India is the fifth largest steel producer in the world and is poised to become the second largest producer in the coming years as a result of several futuristic and positive steps taken by Indian steel companies. Today, the country has several giant steel mills, global scale capacities and backward integration into global raw material sources. Most of these steel capacities are in the form of commodity steel.

Mukand is in the business of specialty steel long products. The special and alloy steels, which forms the lion’s share of Mukand’s steel production in terms of volume, primarily feeds the automobile and auto component sector while the stainless steel products feed into the exports, engineering, automobile, nuclear, etc. sectors. The Indian automobile industry has maintained its growth rate despite several negative factors. It is to be seen if the industry can sustain this growth in the year in running, despite the rising fuel and finance costs.

Mukand produces special and alloy steel through the mini blast furnace route using iron ore as one of the major inputs. This facility is based in Ginigera which is situated in the iron ore rich state of Karnataka. However, it was severely affected by the Supreme Court ruling to ban mining in all the three iron ore producing districts in Karnataka since July 2011. In the month of September 2011 iron ore was available through e–auction but at a much higher price.

The subsequent order by the Supreme Court dated 20th April 2012 permitting category “A” mines to re-open after approval of reclamation and rehabilitation plans is expected to open up the supply by July 2012 and likely to ease the unwarranted pressure on the prices as well as availability of this raw material. But the ban, and the subsequent developments however caused a dip in the production of the company’s alloy steel in the year due to the total closure of the facility for 35 days in the second quarter and partial closure in the third and fourth quarter of the year.

The company produces stainless steel through the ultra high power furnace route in Dighe, Thane, Maharashtra. Prices of alloys required to produce stainless steel such as nickel, molybdenum and ferro-chrome high carbon softened during the year under report, but due to the declining value of the rupee against the dollar, the company was not able to benefit substantially. The company however, recorded a growth in the sales of its stainless steel products in both the export and domestic markets. The overall margin of the steel division was however adversely affected in the year. Substantial increase in iron ore prices, fuel, inflation, slow growth in the economy, depreciation of the Rupee and subsequent increase in finance cost all contributed to this. The company expects the iron ore prices to soften once the Supreme Court order to re-open Category “A” and “B” mines, subject to clearances, is effected. It will have a positive effect on the pricing and availability of iron ore thereby permitting us to achieve the full capacities in production. Meanwhile, the sinter plant which will enable the company to use iron ore fines, which are available at a considerably lower cost, will also be commissioned. This is expected to bring down the cost of steel making considerably. However, the company expects competitive pressure on pricing to intensify with more capacities available in the market vis-à-vis demand.

Cost saving measures introduced by the company will fructify in the year in running. In a study conducted by Bureau of Energy Efficiency on the energy consumption per tonne of steel produced, Mukand’s energy consumption level was the fourth lowest amongst 67 steel companies in India. Constantly adapting to change and developing newer products that will enhance productivity of both the company and the customer is intrinsic to Mukand. In the year under report, several new products that meet the requirements for high end automotive, petrochemical and nuclear application were developed successfully. Import substitutions for the domestic market too were developed.

INDUSTRIAL MACHINERY:

In a recessionary economy, the debate between austerity vs. growth has brought own governments and propped up others across the world. It is a debate that perhaps has no clear solutions just like the chicken and egg scission. In India a hough we do not make this a crucial issue, the government and many large private companies have put their expansion and growth plans on the backburner as a precautionary measure. This has adversely affected the industrial machinery division of Mukand whose performance is linked to the definite growth patterns of other infrastructure industries.

The year under report began on a positive note with order bookings reaching Rs.361 million. However, at the end of the year the division only achieved a turnover of Rs.2530.000 million as some of the customers postponed the delivery dates of their orders. The orders booked during the year were lower due to depressed market. The division continues to hold orders worth Rs.2750.000 million at the end of the year and hopes to further its order book position in the first quarter of the year in running. A major market for the products of the division comes from the steel sector where there is a marked slowdown in the execution of brown and green field projects which will inadvertently effect the performance of the industrial machinery division of the company. The division is also looking at increasing its presence in international markets such as Africa and the Middle East.

The division expects to book several new orders based on tenders quoted he actual execution will depend on the progress of various new as well as expansion projects of the customers. The company has been involved in enhancing its technical skills and widening the product range. Strategic technical collaborations with global leaders are under consideration which will fructify into financial benefits in the future. The division also achieved a 10% reduction in costs through improved product designs and better sourcing during the last one year and is also working on the possibilities of reduction in other costs to become more competitive in the current market. These efforts would rigorously continue in the year in running.

TOTAL QUALITY MANAGEMENT:

Focus on business excellence through total quality management (TQM) activities has been Mukand’s mantra for decades. This strategy has paid rich dividends in terms of market share, brand reputation and superior quality of products over the years. The steel and industrial machinery divisions continue in conformation to the ISO 14001:2004 standard which relates to the environment management system. The steel division also continues its conformity to the ISO/TS 16949 standard which is specific to steel suppliers for the global automotive industry while the industrial machinery division conforms to the ISO 9001:2008 quality management system. The quality control laboratories of the steel division to continued its ISO/IEC 17025:2005 quality management systems enabling it to be considered as an accredited system for undertaking any metallurgical analysis of global standards.

TQM activities form an important part of or every day life in Mukand. The worker group quality circles have won several laurels in national and state competitions including the Par Excellence and Excellence awards at the

national level held by the Quality Circle Forum of India.

INTERNAL CONTROL SYSTEMS:

Adequate systems for internal controls provide assurances on the efficiency of operations, security of assets, statutory compliances, appropriate authorization, reporting and recording of transactions. The management and

audit department prepare regular reports on the review of the systems and procedures. The scope of the audit activity is broadly guided by the annual audit plan approved by the Audit Committee. The Chairman and Managing Director of the Company regularly reviews significant audit observations, discusses corrective measures with the senior managers. The Chief of Management Audit monitors the implementation of these suggested measures.

EMPLOYING THE INTELLECTUAL CAPITAL:

So as we move towards the 75th anniversary, perhaps, we will not be misconstrued if we look within and analyze the contribution to society and perhaps even the country. Today, countries are realizing that measuring GDP alone does not give the whole picture and are exploring new pursuits that reflect society’s broader goals like measuring the happiness levels of its citizens. Perhaps, the time is ripe for us at Mukand to focus a little on the

happiness and welfare of the employees along with the financial reports.

TRAINING FOR ACHIEVEMENT:

Training and development is part and parcel of every company in order to harvest the potential value of employees. Mukand is no different. Up gradation of technical skills training is periodically given to employees as per identified requirements while employees are encouraged to participate in personality development, soft skills enhancement programmers, etc.

Total Quality Management activities are also a very important aspect in the every day life of Mukand. Employees undergo training in TPM, ISO or Damming award preparation and are given opportunities to participate in quality circles, Kaize , suggestions schemes, etc

FUTURE PLAN OF ACTION:

• Studies with respect to type and occurrence of Titanium inclusions in our Ti stabilized stainless steel grades through inclusion characterization using EDAX analysis.

• Studies related to leaded micro alloyed steels for improvement in both mechanical properties and machine ability for CRDI system application in the automotive sector.

• To carry out feasibility for manufacture of Super Duplex Stainless Steels.

• Studies on the development of low carbon Chrome Nickel steel for fuel injection application.

• Improved carburizing steels for high end automobile gear application.

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER & TWELVE MONTHS ENDED MARCH 31, 2013

Rs.in millions

	Particulars	Three months ended		Six Month Later
(1)	INCOME	31.03.2013 (Un audited)	31.12.2012 (Un audited)	31.03.2013 (Un audited)
	Net Sales and Other Operating Income
a)	Gross Sales	5678.184	5054.347	22805.257
	Less : Excise Duty Recovered	533.831	483.358	2212.822
	Net Sales	5144.353	4570.989	20592.435
b)	Other Operating Income	47.347	46.094	669.984
	Net Sales and Other Operating Income	5191.700	4617.083	21262.419
	Expenditure
a)	Cost of materials consumed	2505.094	2452.600	11212.318
b)	Changes in inventories of finished goods and work-in-progress	(292.928)	(413.749)	(611.344)
c)	Stores, Spares, Components,  Tools, etc. consumed	857.354	675.734	3231.513
d)	Power & Fuel	447.725	446.023	1782.010
e)	Employee benefits expense	339.205	346.411	1365.312
f)	Depreciation and Amortisation expenses	165.143	1583.58	641.522
g)	Unrealised Foreign Exchange Loss /  (Gain)	(59.456)	(34.097)	(6.371)
h)	Other Expenditure	856.904	752.456	3162.678
	Total Expenditure	4819.041	4383.736	20777.638
(3)	Profit / (Loss) from Operations before Other Income , Finance Costs  & Net Exceptional income	372.659	233.347	484.781
(4)	Other Income	30.238	24.064	108.741
(5)	Profit/(Loss) from Ordinary Activities before Finance Costs & Exceptional income	402.897	257.411	593.522
(6)	Less: Finance Costs (net)	625.928	532.592
(7)	Profit/(Loss) from ordinary activities before Exceptional income	(223.031)	(275.181)
(8)	Net Exceptional -  Income / (Expenditure)	--	--
(9)	Profit/(Loss) from ordinary activities before Tax	(223.031)	(275.181)
(10)	Less : Tax Expense  (Deferred Tax)	--	(82.408)
(11)	Net Profit / (Loss) from  ordinary  activities  after Tax	(223.031)	(192.773)
(12)	Paid-up Equity Share Capital (Face value Rs 10/- per share)	731.257	731.257	731.257
(13)	Reserves (excluding Revaluation Reserve)
	- Including exceptional items	(3.05)	(2.64)	(5.40)
	- Excluding exceptional items	(3.05)	(2.64)	(20.21)
A	PARTICULARS OF SHAREHOLDING
(1)	Public Shareholding
	Number of Shares	33,929,262	31,320,868	33,929,262
	Percentage of Shareholding	46.41%	42.84%	46.41%
(2)	Disclosure  in respect  of  pledged shares of Promoters and Promoter Group
	Shares held by Promoters & Promoter Group - Nos. (A)	39,184,867	41,793,261	39,184,867
	Percentage of Total Share Capital	53.59%	57.16%	53.59%
	Pledged / Encumbered - No. of Shares	15,705,431	18,328,179	15,705,431
	Percentage of Total Share Capital	21.48%	25.07%	21.48%
	Percentage of (A)	40.08%	43.85%	40.08%
	Non Encumbered - No. of Shares	23,479,436	23,465,082	23,479,436
	Percentage of Total Share Capital	32.11%	32.09%	32.11%
	Percentage of (A)	59.92%	56.15%	59.92%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	30
	Disposed off during the quarter	30
	Remaining unresolved at the end of the quarter	Nil
	SEGMENT RESULT (net of Excise Duty)
1)	Steel	4464.439	4212.665	18480.803
2)	Power Generation	66.515	13.627	221.252
3)	Industrial Machinery	588.848	369.002	1602.352
4)	Road Construction	120.792		565.234
	Sub Total	5240.594	4595.294	20869.641
	Less : Inter Segment Revenue	(96.241)	(24.305)	(277.206)
	Total Segment Revenue  (net of Excise Duty)	5144.353	4570.989	20592.435
	SEGMENT RESULT
(1)	Steel	327.716	235.674	33.033
(2)	Power Generation	52.540	2.365	167.788
(3)	Industrial Machinery	151.403	37.777	276.829
(4)	Road Construction	(50.775)	(18.180)	(104.168)
	Less : Inter  segment margin	(4.438)	(1.220)	(6.997)
	Total Segment Result	386.446	256.416	366.485
	Add / (Less) :
	Other net un-allocable :
	Income	30.159	50.255	348.533
	Expenditure	13.708	49.260	121.496
	Other net un-allocable (expenditure) / income	16.451	0.995	227.037
	Profit before Finance costs	402.897	257.411	593.522
	Less :
	Finance costs  (net)	625.928	532.592	2153.808
	Net Exceptional - Income / (Expenditure)			1083.263
	Profit / (Loss) before tax	(223.031)	(275.181)	(477.023)
	Capital Employed as on	31.03.2013	31.12.2012	31.03.2013
1)	Steel	32725.087	33145.638	32725.087
2)	Power Generation	483.826	485.154	483.826
3)	Industrial Machinery	4221.322	4228.685	4221.322
4)	Road Construction	1426.977	1475.233	1426.977
5)	Un allocable (net)	(18036.963)	(18363.233)	(18036.963)
	Total Net Capital Employed	20820.249	20971.477	20820.249
	Statement of Assets and Liabilities as on	31.03.2013
A	EQUITY AND LIABILITIES
(1)	Shareholders' Funds
	(a) Share Capital	787.520
	(b) Reserves and surplus	20032.729
	Sub-total Shareholders' Funds	20820.249
(2)	Non Current Liabilities
	(a) Long-term borrowings	8567.222
	(b) Other long term liabilities	120.267
	(c) Long-term provisions	300.491
	Sub total Non Current Liabilities	8987.980
(3)	Current Liabilities
	(a) Short-term borrowings	8846.054
	(b) Trade payables	6558.504
	(c) Other current liabilities	6393.128
	(d) Short-term provisions	29.106
	Sub total Current Liabilities	21826.792
	TOTAL EQUITY AND LIABILITIES
B	ASSETS
(1)	Non Current Assets
	(a) Fixed Assets	25536.286
	(b) Non-current investments	2278.044
	(c) Deferred tax Assets (net)	82.408
	(d) Long-term loans and advances	1124.856
	(e) Other non-current assets	482.826
	Non Current Assets	29504.420
(2)	Current Assets
	(a) Inventories	10346.414
	(b) Trade receivables	9352.613
	(c) Cash and Bank Balances	748.048
	(d) Short-term loans and advances	1664.211
	(e) Other Current Assets	19.315
	Sub total Current Assets	22130.601
	TOTAL ASSETS	51635.021

CONTINGENT LIABILITIES

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Disputed matters in appeal/contested in respect of:
-Income Tax	201.000	208.300
- Excise Duty, Customs Duty etc.	45.300	27.600
- Sales Tax, Works Contract Tax etc.	49.000	28.300
- Other matters	2.400	2.400
(ii) Claims against the Company not acknowledged as debts as these are disputed and pending disposal at various fora. For items (i) and (ii) The Company has taken legal and other steps to protect ifs interest in respect of these matters, which is based on legal advice and/or precedents in its own/other cases, It is not possible to make any further determination of the liability which may arise in these matters.	208.900	172.600
(iii) Bills discounted with the Bankers and others-Sale Bills discounted	98.000	172.700
(iv) Guarantees and Counter guarantees given by the Company on behalf of	227.500	189.600
- Other Companies
(v) Bonds / Undertakings given by the Company under concessional duly/ exemption to Customs / Excise Authorities (Net of redemption applied for)	6.600	6.600
(vi) Bonds given by the Company against import of machinery under EPCG Scheme. (Net of redemption applied for)	300.200	193.700
Lenders shall have a right of recompense upto 12% per annum in excess of the effective IRR charged in FRP for 8 years commencing from the date of approval.

FIXED ASSETS

Tangible Assets

• Freehold Land
• Leasehold Land
• Railway Siding
• Buildings and Roads
• Plant and Machinery
• Furniture and Fixtures
• Vehicles

Intangible Assets –

• 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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited tansactions 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.59.36
UK Pound	1	Rs.89.69
Euro	1	Rs.77.99

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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	-

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