MIRA INFORM REPORT

Report Date :

25.07.2013

IDENTIFICATION DETAILS

Name :	WELSPUN STEEL LIMITED (w.e.f.26.05.2010)
Formerly Known As :	WELSPUN POWER AND STEEL LIMITED
Registered Office :	S N 650, Village Varsamedi, Taluka Anjar, District Kutch - 370110, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.06.2004
Com. Reg. No.:	04-044249
Capital Investment / Paid-up Capital :	Rs. 590.960 Millions
CIN No.: [Company Identification No.]	U27109GJ2004PLC044249
TAN No.: [Tax Deduction & Collection Account No.]	RKTW00058C
PAN No.: [Permanent Account No.]	AAACW5308G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of iron and steel products.
No. of Employees :	Information declined by the management

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 29000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having a good track record. Financial position of the company appears to be sound. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions. Subject has changed its accounting year. Latest financials are for the period from October 2011 to March 2012.

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	Short Term Bank Facility = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	18.04.2013

Rating Agency Name	CARE
Rating	Long Term Bank Facility = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	18.04.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED BY

Name :	Mr. Ameya
Designation :	Finance Manager
Contact No.:	91-22-66136000
Date :	24.07.2013

LOCATIONS

Registered Office/ Factory :	S N 650, Village Varsamedi, Taluka Anjar, District Kutch - 370110, Gujarat
Tel. No.:	91-2836-279051/ 53/ 54/ 55/ 56
Fax No.:	91-2836-279050
E-Mail :	secretariallegal@welspun.com dilip_chokhra@welspun.com wpslanjar_gov@welspun.com rashmi_mamtura@welspun.com
Website :	www.welspunsteel.com
Corporate Office :	Welspun House, 7^th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India.
Tel. No.:	91-22-66136000
Fax No.:	91-22-24908020
Branch Office 1 :	23 HIG, BDA Housing Complex, Gangadhar Meher Nagar, Jayadev Vihar, Bhubaneshwar - 751013, Orissa, India
Tel. No.:	91-674-2300223
Fax No.:	91-674-2300224
Branch Office 2:	GIDC Industrial Estate, Valia Road, Jagadia, District Bharuch, Gujurat, India
Tel. No.:	91-2645-226305/6/7
Fax No.:	91-2645-220403

DIRECTORS

As on: 29.09.2012

Name :	Mr. Sitaram Damodardas Somani
Designation :	Director
Address :	N-8/18 Ganpati Niwas, Bangur Niwas Building, Goregaon (West), Mumbai - 400090, Maharashtra, India.
Date of Birth/Age :	23.01.1948
Qualification :	C.A
Date of Appointment :	22.03.2006
DIN No.:	00005017
Name :	Mr. Rajesh Rameshkumar Mandawewala
Designation :	Director
Address :	161/171-B, Opposite Sidhivinayak Temple, Tanna Residency, Prabhadevi, Mumbai - 400025, Maharashtra, India
Date of Birth/Age :	05.05.1962
Qualification :	F.C.A
Date of Appointment :	01.09.2006
DIN No.:	00007179
Name :	Mr. Atul Manubhai Desai
Designation :	Director
Address :	C/62, Vellard View, 14, Tardeo Road, Haji Ali, Mumbai – 400034, Maharashtra, India
Date of Birth/Age :	21.01.1950
Date of Appointment :	29.09.2012
DIN No.:	00019443
Name :	Mr. Ram Gopal Sharma
Designation :	Director
Address :	E-707, Military Road, Off Marol Maroshi Road, Lok Sarita Building, Andheri (East), Mumbai - 400059, Maharashtra, India
Date of Birth/Age :	11.09.1940
Qualification :	B.com, M.A (Economics)
Date of Appointment :	10.05.2006
DIN No.:	00026514
Name :	Mr. Balkrishan Gopiram Goenka
Designation :	Director
Address :	Rocky Isle 46/C, Bhulabhai Desai Road, Breach Candy, Mumbai - 400026, Maharashtra, India
Date of Birth/Age :	15.08.1965
Qualification :	B. Com
PAN No. :	AEOPG4891D
Date of Appointment :	03.06.2004
DIN No.:	00270175
Name :	Mr. Anuj Burakia
Designation :	Director
Address :	B-108, NU-10B, Shakti Nagar, Gandhidham – 370201, Gujarat, India
Date of Birth/Age :	27.06.1979
Qualification :	C.A
PAN No. :	AGCPB8871E
Date of Appointment :	28.12.2011
DIN No.:	02840211

KEY EXECUTIVES

Name :	Ms. Rashmi Donesh Mamatura
Designation :	Secretary
Address :	B-2, Ekvira Niwas, Bhnadar Wada, Pannalal Ghosh Marg, Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	23.01.1987
Date of Appointment :	31.10.2011
PAN No.:	BAHPM5142B
Name :	Mr. Ameya
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Krishiraj Trading Limited, India	54350100
Welspun Finance Limited, India	10000
Welspun Mercantile Limited, India	6659600
Welspun Fintrade Limited, India	40950000
Welspun Wintex Limited, India	2120000
Goldenarch Estates Private Limited, India	1000000
Welspun Investments and Commercials, India	5000000
Welspun Zucchi Textiles Limited, India	100
Welspun Syntex Limited, India	100
Welspun India Limited, India	100
Total	110090000

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of iron and steel products.

Products :

Product Description	ITC No.:
Sponge Iron	7203
Rolled Products	7213
Steel Ingots	7206

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad - 380006, Gujarat, India

· Andhra Bank, 16B, 16th Floor, Earnest House, 194, NCPA Marg, Nariman Point, Mumbai - 400021, Maharashtra, India

· Punjab National Bank, IIIaco House, Sir P. M. Road, Fort, Mumbai - 400001, Maharashtra, India

· Axis Bank Limited

· ICICI Bank Limited

· State Bank of Saurastra

· Yes Bank

· State Bank of Travnacore

· State Bank of Indore

· State Bank of Patiala

· IDBI Bank Limited

· State Bank of Bikaner and Jaipur

· Kotak Bank

· United Bank of India

· Vijya Bank

· Indusind Bank Limited

· Andhra Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 30.09.2011
Long-term borrowings
Rupee term loans from banks	2250.000	2250.000
Foreign currency term loans from banks	381.562	428.531
Short-term borrowings
Loans repayable on demand from banks	349.049	95.654
Total	2980.611	2774.185
Term loans (including current maturities) from banks are secured by way of mortgage (first charge) on all movable and immovable properties of the Company, both present and future, ranking pari passu. Further, the said loans are also secured by second charge on current assets subject to prior charge in favour of working capital facilities. Cash credit from banks are secured by hypothecation of inventories, bills receivables, book debts and other current assets of the Company, both present and future (first charge) and second charge on entire fixed assets of the Company. The cash Credits are repayable on demand and carries interest bank base rate plus spread of 3.25% to 4.25% p.a

Banking Relations :	--
Financial Institutions :	IDBI Trusteeship Services Limited, Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India
Auditors :
Name :	Suresh Surana and Associates Chartered Accountants
Address :	B-301 Mehvish Tower Patel Complex Mira Village Mira Road (East), District Thane Mira Road, Thane– 401104, Maharashtra, India
PAN No.:	ABAPV2006L
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	· Welspun India Limited CIN No.: L17110GJ1985PLC033271 · Welspun Syntex Limited CIN No.: L99999DN1983PLC000045 · Welspun Corp Limited CIN No.: L27100GJ1995PLC025609 · Welspun Maxsteel Limited CIN No.: U27100GJ2008PLC064145 · Welspun Projects Limited CIN No.: L45201GJ1994PLC023920 · Remi Metals Gujarat Limited CIN No.: L27100GJ1993PLC020358 · Welspun Fintrade Private Limited CIN No.: U65910GJ1982PTC055383 · Welspun Logistics Limited U63012MH2006PLC165280 · Welspun Orissa Steel Private Limited CIN No.: U45400OR2007PTC015831 · Krishiraj Trading Limited CIN No.: U65990GJ1992PLC050965 · Welspun Energy Limited CIN No.: U51909GJ2002PLC041136 · Welspun Enterprises (Cyprus) Limited · Red Lebondal Limited
Subsidiary Company :	· PT. Bangun Energy Indonesia · Welspun Steel Resources Private Limited CIN No.: U27109GJ2009PTC055893 · Weslpun Natural Resources (Australia) Pty. Limited · Welspun Mineral Resources Private Limited CIN No.: U14298MH2010PTC209181
Associates :	Welspun Captive Power Generation Limited CIN No.: U40100GJ2010PLC060502

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs. 1500.000 Millions

Issued, Subscribed

No. of Shares	Type	Value	Amount
125500000	Equity Shares	Rs.10/- each	Rs. 1255.000 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
25100000	1 Equity Shares	Rs.10/- each	Rs. 251.000 Millions
84990000	2 Equity Shares	Rs.4/- each	Rs. 339.960 Millions
	Total		Rs. 590.960 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012 (6 Months)	30.09.2011 (18 Months)
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	590.960	590.960
(b) Reserves & Surplus	6789.225	6693.669
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	450.000
Total Shareholders’ Funds (1) + (2)	7380.185	7734.629
(3) Non-Current Liabilities
(a) long-term borrowings	2631.562	2678.531
(b) Deferred tax liabilities (Net)	60.693	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	4.658	3.772
Total Non-current Liabilities (3)	2696.913	2682.303
(4) Current Liabilities
(a) Short term borrowings	349.049	95.654
(b) Trade payables	1493.829	526.400
(c) Other current liabilities	783.238	334.582
(d) Short-term provisions	15.051	666.376
Total Current Liabilities (4)	2641.167	1623.012
TOTAL	12718.265	12039.944
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2072.200	1262.280
(ii) Intangible Assets	0.309	0.386
(iii) Capital work-in-progress	227.861	1050.006
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	6830.339	280.825
(c) Deferred tax assets (net)	0.000	21.982
(d) Long-term Loan and Advances	425.768	6781.030
(e) Other Non-current assets	57.140	37.956
Total Non-Current Assets	9613.617	9434.465
(2) Current assets
(a) Current investments	20.485	50.130
(b) Inventories	1164.881	841.624
(c) Trade receivables	279.175	251.027
(d) Cash and cash equivalents	428.759	82.768
(e) Short-term loans and advances	1123.223	1359.130
(f) Other current assets	88.125	20.800
Total Current Assets	3104.648	2605.479
TOTAL	12718.265	12039.944

SOURCES OF FUNDS		31.03.2010 (12 Months)
SHAREHOLDERS FUNDS
1] Share Capital		251.000
2] Share Application Money		0.000
3] Reserves & Surplus		1549.791
4] (Accumulated Losses)		0.000
NETWORTH		1800.791
LOAN FUNDS
1] Secured Loans		466.534
2] Unsecured Loans		3565.302
TOTAL BORROWING		4031.836
DEFERRED TAX LIABILITIES		22.311
TOTAL		5854.938
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1256.154
Capital work-in-progress		111.852
INVESTMENT		3050.196
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	584.465
	Sundry Debtors	277.563
	Cash & Bank Balances	585.517
	Other Current Assets	1.910
	Loans & Advances	879.449
Total Current Assets		2328.904
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.535
	Other Current Liabilities	574.266
	Provisions	181.367
Total Current Liabilities		892.168
Net Current Assets		1436.736
MISCELLANEOUS EXPENSES		0.000
TOTAL		5854.938

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012 (6 Months)	30.09.2011 (18 Months)	31.03.2010 (12 Months)
	SALES
		Income	3034.169	5631.548	3216.910
		Other Income	100.615	6853.641	202.786
		TOTAL (A)	3134.784	12485.189	3419.696
Less	EXPENSES
		Cost of materials consumed	2257.477	4525.084
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	127.786	(98.528)	2870.660
		Employee related expenses	67.049	129.816
		Other Expenses	278.531	1129.131
		TOTAL (B)	2730.843	5685.503	2870.660
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		403.941	6799.686	549.036
Less	FINANCIAL EXPENSES (D)		216.272	405.475	212.559
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		187.669	6394.211	336.477
Less/ Add	DEPRECIATION/ AMORTISATION (F)		53.937	117.627	75.260
	PROFIT BEFORE TAX (E-F) (G)		133.732	6276.584	261.217
Less	TAX (H)		38.175	1132.706	30.490
	PROFIT AFTER TAX (G-H) (I)		95.557	5143.878	230.727
Add	PRIOR PERIOD INCOME / EXPENSES		0.000	0.000	0.069
	PRIOR YEAR TAX ADJUSTMENT		0.000	0.000	0.421
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6693.669	1549.791	1318.574
	BALANCE CARRIED TO THE B/S		6789.226	6693.669	1549.791
	Earnings Per Share (Rs.)		1.62	88.50	4.64

KEY RATIOS

PARTICULARS		31.03.2012 (6 Months)	30.09.2011 (18 Months)	31.03.2010 (12 Months)
PAT / Total Income	(%)	3.05	41.20	6.74
Net Profit Margin (PBT/Sales)	(%)	4.41	111.45	8.12
Return on Total Assets (PBT/Total Assets}	(%)	2.36	58.73	7.29
Return on Investment (ROI) (PBT/Networth)		0.02	0.81	0.15
Debt Equity Ratio (Total Debt /Networth)		0.40	0.36	2.24
Current Ratio (Current Asset/Current Liability)		1.18	1.61	2.61

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

(Rs. In Millions)

Particulars	31.03.2012 (6 Months)	30.09.2011 (18 Months)	31.03.2010 (12 Months)
Current maturities of long-term debt	127.188	101.219	NA
Total	127.188	101.219	NA

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	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	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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

DETAILS OF LITIGATION

HIGH COURT OF GUJARAT

TAX APPEAL No. 252 of 2013

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Status : PENDING

CCIN No : 001092201300252

Next Listing Date:

26/07/2013

Coram

HONOURABLE MR.JUSTICE M.R. SHAH HONOURABLE MS JUSTICE SONIA GOKANI

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S.NO.	Name of the Petitioner	Advocate On Record
1	STATE OF GUJARAT THROUGH COMMISSIONER OF	GOVERNMENT PLEADER for: Appellant(s) 1

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S.NO.	Name of the Respondant	Advocate On Record
1	WELSPUN STEEL LTD	MR B S SOPARKAR for :Opponent(s) 1

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Presented On	: 28/01/2013	Registered On	: 14/03/2013
Bench Category	: DIVISION BENCH	District	: SURAT
Case Originated From	: THROUGH ADVOCATE	Listed	: 6 times
StageName	: ADJOURNED MATTERS

Classification	DB ? OJ ? MISC. CIVIL APPLICATION - CODE OF CIVIL PROCEDURE, 1908 - EXTENTION OF TIME / CLARIFICATION
Act	SALES TAX ACT, 1969

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Other Forums

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S.No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	FA 27/2010	GUJARAT VALUE ADDED TAX TRIBUNAL, AHMEDABAD	PRESIDENT & MEMBER	27/12/2011	SURAT
Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	28/01/2013	VAKALATNAMA	GOVERNMENT PLEADER for PETITIONER(s) 1	5	GOVERNMENT PLEADER:1
2	28/01/2013	MEMO OF APPEAL/PETITION/SUIT	GOVERNMENT PLEADER for PETITIONER(s) 1	50	GOVERNMENT PLEADER:1
3	26/03/2013	VAKALATNAMA	MR B S SOPARKAR ADVOCATE for RESPONDENT(s) 1 , 1	5	MR B S SOPARKAR:1
Linked Matters

S. No.	CaseDetail	Status Name	Disposal Date	Action/Coram
1	CIVIL APPLICATION/185/2013	PENDING	-	- HONOURABLE MR.JUSTICE M.R. SHAH HONOURABLE MS JUSTICE SONIA GOKANI
Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	15/03/2013	7	34	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
2	05/04/2013	7	43	ADMISSION (FRESH MATTERS)	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
3	26/04/2013	7	45	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
4	09/05/2013	7	38	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
5	11/06/2013	5	35	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH HONOURABLE MS JUSTICE SONIA GOKANI
6	21/06/2013	5	21	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH HONOURABLE MS JUSTICE SONIA GOKANI
7	05/07/2013	5	29	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE M.R. SHAH HONOURABLE MS JUSTICE SONIA GOKANI
8	26/07/2013	5	29	ADJOURNED MATTERS	undefined	HONOURABLE MR.JUSTICE M.R. SHAH HONOURABLE MS JUSTICE SONIA GOKANI

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10412421	11.02.2013	550,000,000.00	Standard Chartered Bank	Abhijeet II, Ground Floor, Near Mithakali Six Ro Ads, Ahmedabad, Gujarat - 380006, India	B70993001
2	10397245	15.12.2012	1,050,000,000.00	Andhra Bank	16b, 16th Floor, Earnest House, 194, Ncpa Marg, N Ariman Point, Mumbai, Maharashtra - 400021, India	B65979957
3	10391122	26.11.2012 *	2,250,000,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Guj Arat - 390015, India	B65694978
4	10395487	12.11.2012	300,000,000.00	Punjab National Bank	Ilaco House, Sir P M Road, Fort, Mumbai, Maharash Tra - 400005, India	B65317042
5	10355314	20.04.2012	200,000,000.00	Punjab National Bank	Ilaco House, Sir P M Road, Mumbai, Maharashtra - 400001, India	B39507462
6	10297842	25.08.2012 *	2,250,000,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, India	B60210085
7	10269499	01.02.2011	900,000,000.00	Standard Chartered Bank	Abhijeet II, Ground Floor, Near Mithakali Six Ro Ads,, Ahmedabad, Gujarat - 380006, India	B06622468
8	80011715	08.12.2011 *	1,612,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, Maker Tower, 'E', Cuffe Parade, Colaba, Mu Mbai, Maharashtra - 400005, India	B29261203
9	80011728	25.06.2013 *	2,670,120,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, Maker Tower, 'E', Cuffe Parade, Colaba, Mu Mbai, Maharashtra - 400005, India	B80078538
10	80011722	28.06.2005 *	266,000,000.00	PUNJAB NATIONAL BANK	Illaco House, Fort, Mumbai, Maharashtra - 400001, India	-
11	80011726	24.01.2006 *	266,000,000.00	PUNJAB NATIONAL BANK	Illaco House, Fort, Mumbai, Maharashtra - 400001, India	-

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2012	30.09.2011
Corporate guarantee given to a bank for term loan and working capital loan availed by Remi Metals Gujarat Limited, a associates company	3850.000	3850.000
Bills discounted with bank	275.635	28.233
Disputed sales tax liability	24.003	24.003

FIXED ASSETS:

• Freehold Land
• Lease Hold Improvement
• Building
• Plant and Machinery
• Officer Equipments
• Furniture and Fixtures
• Vehicle
• Power Plant

AS PER WEBSITE DETAILS

Press Release

WELSPUN PUTS RS.60000.000 MILLIONS STEEL PROJECT IN MAHARASHTRA ON HOLD

July 24, 2013

Welspun Maxsteel, wholly owned subsidiary of the $3-billion Welspun Group, has kept its proposed steel factory plan in Maharashtra on hold due to the shortage of raw material and energy. The delay in environment clearances has also forced the company to keep the project in abeyance for now.

The company proposed in August 2009 to set up a steel plant with annual capacity of 1.5 million tonnes, at an investment of Rs.60000.000 Millions. Power back up from gas-based power plants with a capacity of 330 Mw was part of the plan.

“The proposed plans were made based on the government assurance of adequate gas supplies for both steel mills and power plants from the Krishna-Godavari (KG) basin. The government had also assured us a green signal after it was satisfied with all the requisites. But, neither adequate gas supplies are ensured to us nor environment clearance given. Hence, we decided to put the plant on hold,” said a senior management official.

Welspun was pinning its hopes on this expansion to complete its backward integration. The steel plates from this plant would have been used as raw material for its steel pipe business. Welspun Corp has a pipe mill in Gujarat. The company had planned this investment to shield itself from fluctuating steel prices and getting completely integrated from the raw material to the end product.

Apollo, a global private equity company, had agreed to invest Rs.22500.000 Millions in Welspun Corp in June 2011.

Welspun Maxsteel was formed in May 2009 after Welspun Steel Limited completed the acquisition of Vikram Ispat, the sponge iron division business of Grasim Industries Limited. The Raigad plant was set up in 1989 with an annual capacity of 750,000 mt of sponge iron in the form of hot briquetted iron and an initial investment of Rs.5250.000 Millions. The company was held by the promoters of Welspun Group and in June 2011, when Apollo announced a Rs.2250 Millions investment, was sold to Welspun Corp for Rs.8050.000 Millions. Apollo invested Rs.1400.000 Millions for a 12.5 per cent promoter stake and another Rs.1300.000 Millions in expansion of the plant.

The company’s direct reduced iron plant with annual capacity of 900,000 tonnes is operating normally. However, there are closure fears. The company says it is losing Rs.150.000 Millions a month, as the net weighted cost of gas has soared to $12 per unit, a threefold increase in recent times.

In 2009, the government estimated a total gas output of 60 mscmd from the D6 gas block in the K-G Bsin (KG-D6), estimated to rise to 80 mscmd and later to 100 mscmd in phases in four years. The output at present is 32.3 mscmd. Consequently, the government cut the supply target for each consumer. A cut of 25 per cent has been imposed on the Welspun allocation, which may go down further.

The biggest worry is the change in the pricing of iron ore. “When this steel plant was proposed, the government assured us of an iron ore mining lease on a fixed price basis for a long and sustainable period. From the annual pricing system earlier, the government changed it to quarterly and has now made it index-based, which has made iron ore price several times costlie.

PR - Interim Order in the matter of Non-Compliance of the requirement of Minimum Public Shareholding by the Listed Companies in Private Sector

June 04, 2013

The Securities Contracts (Regulation) Rules, 1957 were amended in 2010 to provide for minimum and continuous public shareholding requirement in listed companies in private sector at 25%. In terms of these Rules, all listed companies have to comply with the said requirement by June 03, 2013. This was done with a view that a dispersed shareholding structure is essential for the sustenance of a continuous market for listed securities to provide liquidity to the investors and to discover fair prices.

There were two hundred such companies which were non compliant with the above requirement as on June 30, 2012. For some of the companies the due date of compliance falls beyond June 3, 2013. There are two companies with substantial government holding which will be taken up along with the time line specified for the Public Sector Undertakings. SEBI initiated a detailed process of consultation with the non compliant companies so as to facilitate achieving the minimum public shareholding requirement. There was a positive response from most of the companies and many companies have made substantial efforts to achieve the minimum public shareholding requirement. Among the large active companies, most of the companies have fully complied with the said requirement.

However, there are 108 companies which have not complied with the said requirement, despite SEBI issuing repeated cautionary advice and providing enabling methods. WTM (SEBI) has passed an ad interim order dated June 04, 2013 against the promoter/promoter group and directors of 105 non compliant companies of which, thirty three companies are suspended by the stock exchanges. (There are three companies where the matter is sub

judice.)

For the aforesaid non-compliances, the following directions have been issued:

a) Freezing of voting rights and corporate benefits like dividend, rights, bonus shares, split, etc. of the promoter/ promoters group of the non-compliant companies, with respect to the excess of proportionate shareholding in respective companies, till such time these companies comply with the minimum public shareholding requirement;

b) Prohibiting the promoters/promoter group and directors of the non-compliant companies from buying, selling or otherwise dealing in the securities of their respective companies, either directly or indirectly, in any manner whatsoever, except for the purpose of complying with the minimum public shareholding requirement till such time these companies comply with the minimum public shareholding requirement;

c) Restraining the promoter/promoter group and directors of the non-compliant companies from holding any new position as a director in any listed company, till such time these companies comply with the minimum public shareholding requirement;

SEBI may take further action in accordance with law for non compliance with the minimum public shareholding requirement and the said order shall be treated as a show cause notice for the same.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.45
UK Pound	1	Rs.91.24
Euro	1	Rs.78.44

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.