MIRA INFORM REPORT

Report Date :

31.07.2013

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 :	The Company is engaged in manufacturing and exporting of Seamless Tubes and Engineering Steels.
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.

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 (GENERAL DETAILS)

Name :	Mr. Vinay
Designation :	Accounts Department
Contact No.:	91-20-66024901
Date:	29.07.2013

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 30.06.2013

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	5008513	3.42
Bodies Corporate	71362158	48.71
Sub Total	76370671	52.13
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	76370671	52.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2967395	2.03
Financial Institutions / Banks	1993848	1.36
Foreign Institutional Investors	5205305	3.55
Sub Total	10166548	6.94
(2) Non-Institutions
Bodies Corporate	13587280	9.27
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	29422019	20.08
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6339153	4.33
Any Others (Specify)	10615712	7.25
Non Resident Indians	3912375	2.67
Trusts	6703337	4.58
Sub Total	59964164	40.93
Total Public shareholding (B)	70130712	47.87
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

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacturing and exporting of Seamless Tubes and Engineering Steels.

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 :

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

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
Long Term Borrowing
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
Short Term Borrowing
Working Capital Borrowings from Banks
- Rupee Loans	382.000	549.900
- Foreign Currency Loans	768.800	174.500
Total	8954.300	6935.600

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 of the 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
175000000	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
146501383	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	146501383 - - 146501383	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	55533788 14102179 9180031	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
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	732.500	732.500
(b) Reserves & Surplus	5141.000	5454.500
(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)	5873.500	6187.000
(3) Non-Current Liabilities
(a) long-term borrowings	8693.900	7062.000
(b) Deferred tax liabilities (Net)	752.300	752.200
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	53.000	45.100
Total Non-current Liabilities (3)	9499.200	7859.300
(4) Current Liabilities
(a) Short term borrowings	1150.800	724.400
(b) Trade payables	5917.500	5392.500
(c) Other current liabilities	5884.700	5627.300
(d) Short-term provisions	166.600	247.600
Total Current Liabilities (4)	13119.600	11991.800
TOTAL	28492.300	26038.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11331.700	10879.500
(ii) Intangible Assets	4.500	19.200
(iii) Capital work-in-progress	2929.700	2214.200
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	484.700	484.700
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	145.500	347.300
(e) Other Non-current assets	981.500	796.400
(f) Foreign Currency Monetary Item Translation Difference Account	50.200	--
Total Non-Current Assets	15927.800	14741.300
(2) Current assets
(a) Current investments	15.000	15.000
(b) Inventories	4916.300	4486.000
(c) Trade receivables	4117.500	4387.800
(d) Cash and cash equivalents	899.800	677.900
(e) Short-term loans and advances	1403.300	806.800
(f) Other current assets	1212.600	923.300
Total Current Assets	12564.500	11296.800
TOTAL	28492.300	26038.100

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		732.500
2] Equity Share Warrants		0.000
3] Reserves & Surplus		5061.100
4] (Accumulated Losses)		0.000
NETWORTH		5793.600
LOAN FUNDS
1] Secured Loans		7805.800
2] Unsecured Loans		2189.400
TOTAL BORROWING		9995.200
DEFERRED TAX LIABILITIES		416.900
TOTAL		16205.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6986.600
Capital work-in-progress		4886.100
INVESTMENT		357.400
DEFERREX TAX ASSETS		0.000
Foreign Currency Monetary Item Translation Account		49.100
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3512.200
	Sundry Debtors	3388.900
	Cash & Bank Balances	623.700
	Other Current Assets	0.000
	Loans & Advances	2332.600
Total Current Assets		9857.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1222.100
	Other Current Liabilities	4420.500
	Provisions	306.400
Total Current Liabilities		5949.000
Net Current Assets		3908.400
MISCELLANEOUS EXPENSES		18.100
TOTAL		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	16618.700	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		589.100	548.300	473.000
Less	APPROPRIATIONS
		Dividend	109.900	183.100	146.500
		Tax on Dividend	17.800	29.700	24.300
		General Reserve	500.000	500.000	500.000
	BALANCE CARRIED TO THE B/S		247.300	589.100	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	31.12.2012	31.03.2013
	1^st Quarter	2^nd Quarter	3^rdQuarter	4^thQuarter
Net Sales	4695.600	3864.000	3374.500	3983.800
Total Expenditure	4300.900	3494.400	3163.300	3642.200
PBIDT (Excl OI)	394.700	369.600	211.200	341.600
Other Income	41.900	49.400	34.000	81.300
Operating Profit	436.600	419.000	245.200	422.900
Interest	373.000	385.900	396.200	371.500
Exceptional Items	0.000	(249.500)	-87.300	(110.200)
PBDT	63.600	(216.400)	(238.300)	(58.800)
Depreciation	2198.500	236.900	253.300	246.700
Profit Before Tax	(155.900)	(453.300)	(491.600)	(305.500)
Tax	0.000	(171.200)	(135.000)	(103.000)
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(155.900)	(282.100)	(356.600)	(202.500)
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	(155.900)	(282.100)	(356.600)	(202.500)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.45	4.53	6.19
Net Profit Margin (PBT/Sales)	(%)	1.47	5.82	7.65
Return on Total Assets (PBT/Total Assets}	(%)	1.20	4.32	5.42
Return on Investment (ROI) (PBT/Networth)		0.05	0.15	0.16
Debt Equity Ratio (Total Debt/Networth)		1.68	1.26	1.73
Current Ratio (Current Asset/Current Liability)		0.96	0.94	1.66

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	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

UNSECURED LOANS:

Particulars	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Long Term Borrowing
Term Loan from Bank	300.000	0.000
Interest Free Incentive and sales Tax Loan	590.400	850.800
Total	890.400	850.800

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 AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST MARCH, 2013

(Rs. In Millions)

Sr. No.	Particulars	Quarter Ended		Year ended
		31.03.2013	31.12.2012	31.03.2013
		Unaudited	Unaudited	Audited
PART-I
1	Gross Sales/ Income from Operations	64010.000	5136.900	25130.200
2	Less :  Inter Segment Transfers	2046.100	1444.500	7452.900
	Inter Division Transfers	172.000	193.100	1123.800
	Excise Duty	378.200	367.500	1439.400
	(a) Net Sales/ Income from Operations	3804.700	3134.500	15114.100
	(b) Other Operating Income	179.100	240.000	803.800
	Total Income from Operations (a+b)	3983.800	3374.500	15917.900
2	Expenses
	(a) Consumption of Raw Materials	1975.800	1661.400	7734.400
	(b) Purchases of stock-in-trade	21.500	22.400	82.100
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(10.000)	(83.200)	(271.800)
	(d) Employee benefit expenses	300.800	280.700	1157.900
	(e) Depreciation and Amortisation Expense	246.700	253.300	956.400
	(f) Other Expenses :
	(i) Energy	518.300	750.900	2956.000
	(ii)Other Direct Expenditure	658.000	479.800	2399.500
	(iii) Other Expenditure	177.800	51.300	351.200
	Total Expenses	3888.900	3416.600	15365.700
3	Profit from Operations before other income, finance costs and exceptional items (1-2)	94.900	(42.100)	552.200
4	Other Income	81.300	34.000	206.600
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	176.200	(8.100)	758.800
6	Finance Costs	371.500	396.200	1526.600
7	Profit from ordinary activities after finance costs but before exceptional items and foreign exchange( Gain)/ Loss( 5-6)	(195.300)	(404.300)	(767.800)
8	Exceptional items (Foreign Exchange (Gain)/ Loss)	110.200	87.300	638.500
9	Profit / (Loss) from ordinary activities before tax (7- 8)	(305.500)	(491.600)	(1406.300)
10	Tax Expenses	(103.000)	(135.000)	(409.200)
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	(202.500)	(356.600)	(997.100)
12	Extraordinary items	--	--	--
13	Net Profit / (Loss) for the period after tax (11-12)	(202.500)	(356.600)	(9.971)
14	Share of Minority Interest	--	--	--
15	Net Profit/ (Loss) after tax and Minority Interest (13-14)	(202.500)	(356.600)	(9.971)
16	Paid-up Equity Share Capital (Face Value of Rs.5/- per share)	73.25	73.25	73.25
17	Reserves excluding Revaluation Reserves as per	--	--	4165.700
	Balance Sheet of previous accounting year.
18	Earnings per share before extraordinary items
	Basic and Diluted Earnings per share of Rs.5/- each (Rs) (not annualised)	(1.38)	(2.43)	(6.81)
	Earnings per share after extraordinary items
19	Basic and Diluted Earnings per share of Rs.5/- each (Rs) (not annualised)	(1.38)	(2.43)	(6.81)
PART-II
A	SELECT INFORMATION FOR THE QUARTER ENDED 31^STMARCH, 2013
	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of Shares	70150712	70794009	70150712
	Percentage of Shareholding	47.88	48.32	47.88
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	76350671	75707374	76350671
	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 )	52.12	51.68	52.12
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	4
	Disposed of during the quarter	4
	Remaining unresolved at the end of the quarter	NIL

SEGMENT WISE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED

31^st MARCH, 2013

Particulars	Quarter Ended		Year Ended
	31.03.2013	31.12.2012	31.03.2013
a) Gross Sales – Tube	3184.400	2659.000	12978.800
Less : Inter Division	172.000	193.100	1123.800
Sales to Subsidiary Company	-	-	-
Excise Duty	241.000	210.900	873.700
Sub total	2771.400	2255.000	10981.300
b) Gross Sales – Steel	3216.600	2480.600	12151.400
Less : Inter Segment	2046.100	1444.500	7452.900
Excise Duty	137.200	156.600	565.700
Sub total	1033.300	879.500	4132.800
Total Net Sales/ Income from Operations	3804.700	3134.500	15114.100
Segment Results
Profit / ( Loss) after Depreciation and Before Finance Costs &
Exceptional item- Foreign Exchange (Gain) / Loss, Unallocable income (net) and Tax
a) Tube	(276.600)	20.000	83.700
b) Steel *	78.000	(61400)	177.800
Total	(198.600)	(41.400)	261.500
Less : Finance Costs	371.500	396.200	1526.600
Foreign Exchange ( Gain) / Loss	110.200	87.300	638.500
Add : Unallocable Income	374.800	33.300	497.300
( Net of Unallocable Expenses)
Total Profit/ (Loss) Before Tax	(305.500)	(491.600)	(1406.300)
Less : Tax Expenses	(103.000)	(135.000)	(409.200)
Total Profit/(Loss) After Tax	(202.500)	(356.600)	(997.100)
Less : Share of Minority Interest	-	-	-
Profit/ (Loss) After Minority Interest	(202.500)	(356.600)	(997.100)
Capital Employed
( Segment Assets – Segment Liabilities)
a) Tube	14033.300	13991.400	14033.300
b) Steel	1074.100	2358.200	1074.100
c) Unallocable	(10209.200)	(11360.900)	(10209.200)

* Includes profit on steel captively consumed by Tube Segment

STATEMENT OF ASSETS AND LIABILITIES

Particulars	31.03.2013 (Rs. In Millions)
A EQUITY AND LIABILITIES
1 Shareholders' Funds
a) Share Capital	732.500
b) Reserves & Surplus	4165.700
Sub -Total Shareholders" funds	4898.200
2 Minority Interest	--
3 Non - Current Liabilities
a) Long Term Borrowings	7318.700
b) Deferred Tax Liabilities (Net)	343.600
c) Long Term Provisions	60.200
Sub - Total - Non Current Liabilities	7722.500
4 Current Liabilities
a) Short Term Borrowings	3218.400
b) Trade Payables	6399.600
c) Other Current Liabilities	5884.000
d) Short Term Provisions	17.900
Sub -Total - Current Liabilities	15519.900
TOTAL EQUITY AND LIABILITIES	28140.600
B ASSETS
1 Non - Current Assets
a) Fixed Assets	13877.100
b) Goodwill on Consolidation	--
c) Non-Current investment	527.500
d) Long Term Loans and Advances	120.700
e) Other Non Current Assets	928.700
Sub - Total - Non - Current Assets	15454.000
2 Current Assets
a) Current Investment	0.000
b) Inventories	5078.500
c) Trade Receivables	4000.600
d) Cash and Bank Balances	743.700
e) Short Term Loans and Advances	1576.900
f) Other Current Assets	1286.900
Sub - Total - Current Assets	12686.600
Total Assets	28140.600

NOTES ON AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31^st MARCH, 2013

1. The Company had adopted the Hedge Accounting policy and principles set out in Accounting Standard (AS) 30 Financial Instruments: Recognition and Measurement. During the quarter ended 31^st March, 2013, the Company has carried Exchange gain of Rs.67.400 Millions to Hedge Reserve Account and charged Exchange Loss of Rs. 128.700 Millions to Profit and Loss Account from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 31^stMarch, 2013 is Rs. 154.400 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 31^st March, 2013, Exchange gain capitalized is Rs. 48.700 Millions and Exchange gain recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 2.800 Millions and Exchange Loss of Rs. 2.100 Millions transferred to Profit and Loss Account from FCMITDA. Balance in FCMITDA as on 31^st March, 2013 is Rs. 67.500 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. 16.600 Millions and Rs. 67.200 Millions during current quarter and nine months ended 31^st March, 2013 respectively against the Amalgamation Reserve.

4. The Company has invested Rs.484.300 Millions in its subsidiary ISMT Enterprises, Luxembourg, which in turn holds 100 % investment in Structo Hydraulics AB, Sweden (SHAB). The company has given a corporate guarantee of Rs 272.000 Millions (USD 5 Million) for loan availed by SHAB. The net recoverable on account of supplies by the company to SHAB is Rs. 279.800 Millions. While SHAB had cash profit in the previous year, it has incurred cash loss in the current year and the net worth of SHAB is eroded. The management is of the opinion that the investment made in ISMT Enterprises group is strategic and with a long term view as a forward integration in the value chain of core business of the Company as such no provision for the same is considered necessary.

5. Employee Benefit Expenses include remuneration paid to Non Executive Director amounting to Rs. 1.200 Millions and to Executive Directors amounting to Rs. 167.000 Millions, which is in excess of limit specified under Schedule XIII to The Companies Act, 1956, is subject to approval of Central Govt.

6. The Company had entered in to an Energy Banking Agreement (EBA) dated 7^th May, 2010 with Maharashtra Electricity Distribution Company Limited (MSEDCL) which was not implemented by MSEDCL while granting Open Access permission. Upon petition filed by the Company in this matter an interim order has been passed by Maharashtra Electricity Regulatory Commission, Mumbai (MERC), staying Open Access Circular No. 170 of MSEDCL and making the EBA operative .Consequent on the order of MERC and based on the legal opinion, the Company has accounted refund claim of Rs.299.400 Millions representing excess energy charges paid to MSEDCL on account of non availability of banking facility.'

7. The Company had recognized insurance claim amounting to Rs. 149.800 Millions in the financial year 2011-12. After accounting for receipt of part claim and credit for rejected material, the balance amount of Rs. 24.500 Millions is yet to be received from the Insurance Company. The Company expects that the said claim would be settled by the Insurance Company and there would be no material difference in the settlement of the claim.

8. The figures of the last quarter of year ended 31^st March, 2013 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year.

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

10. 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 28^th May, 2013.

FIXED ASSETS:

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

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 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.59.83
UK Pound	1	Rs.91.76
Euro	1	Rs.79.33

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

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
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.