MIRA INFORM REPORT

Report Date :

22.03.2013

IDENTIFICATION DETAILS

Name :	BHUSHAN STEEL LIMITED (w.e.f. 2007)
Formerly Known As :	BHUSHAN STEEL AND STRIPS LIMITED
Registered Office :	F Block, 1^st Floor, International Trade Tower, Nehru Place, New Delhi – 110019
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.01.1983
Com. Reg. No.:	55-014942
Capital Investment / Paid-up Capital :	Rs.1284.144 Millions
CIN No.: [Company Identification No.]	L74899DL1983PLC014942
TAN No.: [Tax Deduction & Collection Account No.]	DELB07323B
PAN No.: [Permanent Account No.]	AAACB1247M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils and Galvanized Cold Rolled Steel Strips/Sheets/Coils.
No. of Employees :	5428 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 311000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a good track record. The external borrowing of the company is increasing over a year. However, general financial position of the company appears to be strong. Performance capability seems to be high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A+ (Non Convertible Debenture)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	12 November, 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.

LOCATIONS

Registered/ Corporate Office :	F Block, 1^st Floor, Nehru Place, International Trade Tower, New Delhi – 110019, India
Tel. No.:	91-11-26462373 (5 Lines) / 42297777 / 42295555 / 39194000
Fax No.:	91-11-26478750 / 26415845
E-Mail :	bssledl@nde.vsnl.net.in davraop@bhushan-group.org onlinefilling@gmail.com
Website :	http://www.bhushansteel.com
Factory 1 and Marketing Office – Sahibabad :	23, Site IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad – 201 010, Uttar Pradesh, India
Tel. No.:	91-120-2770601- 04/ 3028000-09
Fax No.:	91-120-2770509/ 4100574
E-Mail :	bsslsahibabad@bhushansteel.com
Factory 2 :	28/4, Site IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad – 201 010, Uttar Pradesh, India
Factory 3 :	Village Nifran, Savroli and Dehvali, Taluka – Khalapura, (Near Khopoli), District Raigad – 410 203, Maharashtra, India
Tel. No.:	91-2192-274146/ 302000
Fax No.:	91-2192-274294/ 274354
E-Mail :	bsslkhapoli@bhushansteel.com
Factory 4 :	Narendra Pur, P O Shibapur, Village Meramandali, District – Dhenkanal – 759 121, Orissa, India
Tel. No. :	91-6764-300000/ 326443/ 325133/ 325857
E-mail :	bssldhenkanal@bhushansteel.com
Branches :	Located at: · Agra · Ahmedabad · Aurangabad · Bengaluru · Bhubaneshwar · Chandigarh · Chennai · Coimbatore · Dehradun · Delhi · Faridabad · Gurgaon · Guwahati · Haldwani · Hyderabad · Hosur · Indore · Jaipur · Jammu · Kullu · Kolkata · Kanpur · Ludhiana · Mandigovindgarh · Mumbai · Pilkhuwa (Hapur) · Pune · Parwanoo · Rishikesh · Varanasi

DIRECTORS

As on 31.03.2012

Name :	Mr. Brij Bhushan Singal
Designation :	Chairman
Address:	W-29, Greater Kailash, Part-II, New Delhi-110046, India
Date of Birth/ Age:	20.11.1936
Date of Appointment:	15.01.1987
Name :	Mr. Neeraj Singal
Designation :	Vice Chairman and Managing Director
Address:	W-29, Greater Kailash, Part-II, New Delhi-110046, India
Date of Birth/ Age:	23.04.1968
Qualification:	Graduate
Date of Appointment:	01.04.1992
Name :	Mr. Mohan Lal
Designation :	Director
Address:	19-A, Udham Singh Nagar, Ludhiana, India
Name :	Mr. B B Tondon
Designation :	Director
Name :	Mr. V.K. Mehrotra
Designation :	Director
Name :	Mr. M. V. Surya Narayana
Designation :	Director
Address:	12-2-417/A/11, Gudimalkapur, Jaya Nagar, Hydedrabad - 500028, Andhra Pradesh, India
Date of Birth/ Age:	05.04.1946
Date of Appointment:	25.09.2010
Name :	Mrs. Sunita Sharma
Designation :	Nominee Director of LIC
Name :	Mr. Nittin Johari
Designation :	Whole-time Director [Finance]
Qualification:	M.Com, FCA
Date of Appointment:	06.01.1995
Name :	Mr. Rahul Sen Gupta
Designation :	Whole-time Director [Technical]
Name :	Mr. P.K. Aggarwal
Designation :	Whole time Director [Commercial]

KEY EXECUTIVES

Name :	Mr. O. P. Davra
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	117368885	55.27
Bodies Corporate	27643633	13.02
Sub Total	145012518	68.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	145012518	68.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	35918	0.02
Financial Institutions / Banks	6729	0.00
Insurance Companies	1641291	0.77
Foreign Institutional Investors	3838486	1.81
Sub Total	5522424	2.60
(2) Non-Institutions
Bodies Corporate	43237895	20.36
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3308234	1.56
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	14995201	7.06
Any Others (Specify)	282038	0.13
Non Resident Indians	136506	0.06
Clearing Members	145532	0.07
Sub Total	61823368	29.11
Total Public shareholding (B)	67345792	31.71
Total (A)+(B)	212358310	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)	212358310	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Distributor of Cold Rolled Steel Strips/Sheets/Coils and Galvanized Cold Rolled Steel Strips/Sheets/Coils.

Products :

Product Description	Item Code No. (ITC Code)
Corrugated coated with Zinc Cold Rolled Products of Iron or Non Alloy Steel of a width of 600 MM or more	721041
Flat Coated with Zinc Cold Products of Iron or Non Alloy Steel of a width of 600 MM or more	721049
Flat Cold Rolled Products of Iron or Non Alloy Steel of a width of 600 MM or more of a thickness of less than 0.5 MM	720918

· Cold Rolled

· Galvanised

· Bhushan Galume

· Colour Coated Coil

· Colour Coated Tiles

· Drawn Tubes of OEM Grade

· Hardened and Tempered Strip

· High Tensile Steel Stripping

· Wire Rods and Alloy Billets

· Sponge Iron

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Hot Rolled Steel Strips/Sheets/Coils	MT	1900000	805675
Cold Rolled Steel Strips/Sheets/Coils	MT	1250000	1191715
Cold Rolled Galvanised Steel Strips/Sheets/Coils	MT	540000	545196
Colour Coated Galvanised Steel Strips/Sheets/Coils	MT	160000	118691
Precision Tubes	MT	140000	126642
Hardened & Tempered Cold Rolled Steel Strips	MT	11000	12412
High Tensile Steel Strapings	MT	20000	9865
Sponge Iron	MT	900000	406787
Billets	MT	340000	242035
Wire Rods	MT	20000	8623
Formed Sections		3000	780

GENERAL INFORMATION

Customers

· Alstom

· BHEL

· Bajaj

· Bundy

· Ashok Leyand

· Ford

· Honda

· Hitachi

· Hyundai

· IFB

· Mahindra

· GM

· SKF

· Kone

· Carrier

· Yamaha

No. of Employees :

5428 (Approximately)

Bankers :

• Allahabad Bank
• Andhra Bank
• Axis Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Bank of Rajasthan
• Barclays Bank
• Bayerische Landesbank
• Canara Bank
• Central Bank of India
• Corporation Bank
• Credit Agricole Bank (Calyon Bank)
• Deutsche Bank
• Dena Bank
• DBS Bank
• Exim Bank
• Federal Bank
• HSBC Bank
• ICICI Bank
• IDBI Bank
• Indian Bank
• Indian Overseas Bank, 14-15, Farm Bhawan, Nehru Place, New Delhi-110019, India
• IndusInd Bank
• ING Bank
• Jammu and Kashmir Bank
• Oriental Bank of Commerce
• Punjab and Sind Bank
• Punjab National Bank
• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of India
• State Bank of Indore
• Sate Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore
• Syndicate Bank
• The Bank of Tokyo-Mitsubishi UFJ Limited
• UCO Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• Yes Bank
• Saraswat Cooperative Bank Limited
• South Indian Bank
• Standard Chartered Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012
Non Convertible Debentures	9950.000
Term Loan
1. From Banks
Foreign Currency	63262.194
Rupee Loans	82302.621
2. From Financial Institutions
Rupee Loans	947.136
3. Vehicle Loan From Bank	2.702
Working Capital Loans
From Banks
Cash Credit	10331.940
Foreign Currency Loans	6601.107
Term Loan
From Banks
Rupee Loans	11500.008
Total	184897.708

Notes:

(1) 12% Redeemable Non-Convertible 100 Debentures (Subordinate Debt) of Rs.10.000 Millions each outstanding on 31st March 2012 Rs.1000.000 Millions (Previous Year 12% Redeemable Non-Convertible 100 Debentures of Rs.10.000 Millions each outstanding on 31st March 2011 Rs.1000.000 Millions) (subordinate debt) are redeemable at par in one bullet payment at the end of 10th year from the date of allotment i.e 31.03.2008 and are Secured by Subsequent and subservient charge by way of hypothecation on the present and future assets of the company so as to maintain minimum asset coverage of 1.25 times, throughout the currency of the Debentures. Debentures are further secured by pledge of Equity Shares of subject, having market value not less than 1.5 times of loans, held by promoters/ promoter entities, and Personal Guarantee of B.B. Singal and Neeraj Singal.

(2) 10.50 % Redeemable Non-Convertible 3000 Debentures of Rs.1.000 Millions each outstanding on 31st March 2012 Rs.3000.000 Millions (Previous Year 10.50% Redeemable Non-Convertible 3000 Debentures of Rs.1.000 Millions each outstanding on 31st March 2011 Rs.3000.000 Millions) Debentures are redeemable at par in three equal annual installments commencing from the end of 6th year from the date of allotment i.e.13.08.2010 and are Secured by first charge on pari passu basis on the fixed assets of the Company.

(3) 10.90 % Redeemable Non-Convertible 1750 Debentures of Rs.1.000 Millions each outstanding on 31st March 2012 Rs. 1750.000 Millions (Previous Year 10.90% Redeemable Non-Convertible 1750 Debentures of HO Millions each outstanding on 31st March 2011 Rs. 1750.000 Millions) are redeemable at par in Four equal annual installments commencing from the end of 5th year from the deemed date of allotment i.e.26.08.2010 and are Secured by first charge on pari passu basis on the fixed assets of the Company.

(4) 10.20% Redeemable Non-Convertible 1000 Debentures of Rs.1.000 Millions each outstanding on 31st March 2012 Rs.1000.000 Millions (Previous Year 10.20% Redeemable Non-Convertible 1000 Debentures of no Rs.1.000 Millions each outstanding on 31st March 2011 Rs.1000.0000 Millions) are redeemable at par in one bullet payment at the end of 7th year from the date of allotment i.e 26.03.2007 and are Secured by first charge on pari passu basis on the fixed assets of the Company.

(5) 8.15% Redeemable Non-Convertible 60 Debentures of Rs.10.000 Millions each outstanding on 31st March 2012 Rs.200.000 Millions (Previous Year 8.15% Redeemable Non-Convertible 60 Debentures of Rs.10.000 Millions each outstanding on 31st March 2011 Rs.400.000 Millions) are redeemable at par in three equal annual installments commencing from 4th year from the date of disbursement i.e.24.04.2006, Rs.6.666 Millions (Previous Year Rs.3.333 Millions) per Debenture have been redeemed and are Secured by first charge on pari passu basis on the fixed assets of the Company.

(6) 11.75 % Redeemable Non-Convertible 3000 Debentures of Rs.1.000 Millions each outstanding on 31st March 2012 Rs.3000.000 Millions (Previous Year Rs. Nil Debentures outstanding on 31st March 2011 Rs. Nil) are redeemable in three equal annual installments commencing from the end of 5th year from the date of allotment ie. 02.02.2012 and are Secured by first charge on pari passu basis on the fixed assets of the Company.

(7) Secured by first mortgage charge on all of the company's immovable and movable properties both present and future including movable machinery, spares, tools and accessories at all the plants (excluding specific charge created on favour of ECA Lenders), ranking pari passu inter-se, with the trustee of Debenture holders subject to prior charges created in favour of banks on stocks, book debts etc. for securing borrowing for working capital requirement, except Rs.5669.500 Millions (Previous Year Rs. NIL) secured by subsequent and subservient charge on movable assets, out of the above, the ECA Loans of Rs.24725.100 Millions (Previous Year Rs.146366 Millions) financed by ECA Lenders are secured by first exclusive charge on the assets financed and personal guarantee of two promoter directors. Out of these, Loans of Rs.61852.000 Millions (Previous Year Rs.32960.600 Millions) are guaranteed by the Personal Guarantee of two promoter directors and Loans of Rs.1410.200 Millions (Previous Year Rs.480.400 Millions) are guaranteed by the Personal Guarantee of One Promoter Director.

(8) Secured by first mortgage charge on all of the company's immovable and movable properties both present and future including movable machinery, spares, tools and accessories at all the plants (excluding specific charge created in favour of ECA Lenders) ranking pari passu inter-se, with the trustee of Debenture holders subject to prior charges created in favour of banks on stocks, book debts etc. for securing borrowing for working capital requirement, except Rs.4199.900 Millions (Previous Year Rs. 9948.800 Millions) secured by subsequent and subservient charge on movable assets. Loans of Rs.51279.600 Millions (Previous Year Rs.43352.200 Millions) are guaranteed by the Personal Guarantee of two promoter directors and Loans of Rs.31023.000 Millions (Previous Year Rs.22270.800 Millions) are guaranteed by the Personal Guarantee of One Promoter Director.

(9) Secured by first mortgage charge on all of the company's immovable and movable properties both present and future including movable machinery, spares, tools and accessories at all the plants (excluding specific charge created in favour of ECA Lenders) ranking pari passu inter-se, with the trustee of Debenture holders subject to prior charges created in favour of banks on stocks, book debts etc. for securing borrowing for working capital requirement. Out of these Loans of Rs.47.100 Millions (Previous Year Rs.94.300 Millions) are guaranteed by the Personal Guarantee of Two Promoter Directors and Loans of Rs.900.000 Millions (Previous Year Rs.1200.000 Millions) are guaranteed by the Personal Guarantee of One Promoter Director.

(10) Secured by hypothecation of specific assets.

(11) Maturity Profile of Long Term Borrowing (Other than NCDs) are set out as below:

(Rs. In Millions)

	1 year	2-3 Years	Beyond 3 years
Term Loans	15144.100	34002.000	11.100

(12) Domestic Loan sanctioned by SBI Syndication for Phase I and II of Orissa project was sanctioned at rate of interest of SBI Base Rate+2.00% (presently 12% p.a.) and repayable in 24 quarterly installments commencing from 24 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(13) Foreign Currency Loan for Phase I and II of Orissa project was sanctioned at interest rate of EURIBOR + 0.45% (Presently 1.89% p.a.) repayable in 20 Half Yearly Installments commencing from six Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(14) Another Foreign Currency Loan for Phase I and II of Orissa project was sanctioned at interest rate of USD LIBOR + 1.65% (presently 2.49% p.a.) repayable in three annual Installments commencing from 18 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(15) Domestic Loan sanctioned by SBI Syndication for Phase III of Orissa project was sanctioned at rate of interest of SBI Base Rate+2.50% (presently 12.50% p.a.) and repayable in 17 quarterly installments commencing from 18 months after completion of the project as per terms stipulated in respective loan/facility agreement/s.

(16) Foreign Currency Loan for Phase III of Orissa project was sanctioned at interest rate of EURIBOR+1.50% (Presently 2.946% p.a.) repayable in 20 half yearly installments commencing from 6 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(17) Another Foreign Currency Loan sanctioned for Phase III of the Orissa Project at interest rate of USD LIBOR+3.95% (Presently 4.703% p.a.) repayable in 6 annual installments commencing from 36 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(18) Another Foreign Currency Loan sanctioned for Phase III of the Orissa Project at interest rate of Euribor+1.75% (Presently 3.28% p.a.) repayable in 18 half yearly installments commencing from three Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(19) Domestic Loan sanctioned for Coke Oven 2 of Orissa project was sanctioned at rate of interest of Base Rate+2.50% (Presently 12.25% p.a.) and repayable in 24 quarterly installments commencing from 15 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(20) Foreign Currency Loan for Coke Oven 2 of Orissa Project was sanctioned at interest rate of EURIBOR + 4.50% (Presently 5.21% p.a.) repayable in 12 half yearly installments commencing from 15 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(21) Other Foreign Currency Loans for Orissa Project was sanctioned at rate of interest of USD LIBOR+3.50% (Presently 3.98% p.a.) repayable in three annual installments commencing from 48 Months after completion of the project as per terms stipulated in respective loan / facility agreement/s.

(22) Rate of interest of other Term Loans / Foreign Currency Loans are linked with the Base Rate / LIBOR.

(23) Working capital loans are secured by hypothecation of stock and book debts, second charge on company's land, building and other immovable properties ranking pari passu inter-se, personal guarantee of two promoter directors.

(24) Secured by Subsequent and subservient charge on movable assets of the company. Further Loans of Rs.4000.000 Millions (Previous Year Rs.6009.900 Millions) are guaranteed by the personal guarantee of two promoter directors and Loans of Rs.75000 Millions (previous year Rs.2000.000 Millions) are guaranteed by the personal guarantee of one promoter director.

Secured Loans	Rs. In Millions 31.03.2011
60 8.15 % Redeemable Non Convertible Debentures of Rs.100 Lac each	400.000
1000 10.20% Redeemable Non Convertible Debentures of Rs.10 Lac each	1000.000
3000 10.50% Redeemable Non Convertible Debentures of Rs.10 Lac each	3000.000
100 12% (Previous Year Nil) Redeemable Non Convertible Debentures of Rs.100 Lac each	1000.000
1750 10.90% Redeemable Non Convertible Debentures of Rs.10 Lac each	1750.000
Cash Credit From Banks:
Foreign Currency Loans	4190.919
Rupee Loans	3925.957
Term Loan
From Banks-.
Foreign Currency Loans	33450.852
Rupee Loans	73901.784
From Financial Institutions
Rupee Loans	1294.280
Vehicle Loan from Bank	4.725
Total	123918.517

Banking Relations :

--

Auditors :

Name :

Mehra Goel and Company

Chartered Accountants

Memberships :

Confederation of Indian Industry

Joint Venture:

Andal East Coal Company Private Limited

Associates :

· Angul Sukinda Railway Limited

· Bhusahan Energy Limited

Subsidiaries :

• Bhushan Steel (Orissa) Limited (Incorporated on 27th April, 2010)
• Bhushan Steel Madhya Bharat Limited(Incorporated on 27th April, 2010)
• Bhushan Steel (South) Limited (Incorporated on 27th April, 2010)
• Bhushan Steel Bengal Limited (Incorporated on 27th April, 2010)
• Parakeet Finvest Private Limited (from 25th January, 2012)
• Marsh Capital Services Private Limited (from 25th January, 2012)
• Paragon Securities Private Limited (from 25th January, 2012)
• Perpetual Securities Private Limited (from 25th January, 2012)
• Jawahar Credit and Holdings Private Limited(from 29th February, 2012)
• Bhushan Capital and Credit Services Private Limited(from 29th February, 2012)
• Bhushan Steel Global FZE (Upto 7th May, 2011)
• Bhushan Steel (Australia) PTY Limited–
• Bowen Energy Limited, Australia
• Kondor Holdings PTY Limited
• Bowen Coal PTY Limited
• Bowen Consolidated PTY Limited
• Capricorn Metals Limited(Deregistered w.e.f. 04th April, 2011)
• Capricorn Resources (Australia) Limited (Deregistered w.e.f. 04th April, 2011)
• Golden Country Resources (Australia) PTY Limited
• Bowen Energy (Asia) PTE Limited (Has been struck off).

Other Related Parties :

· Bhushan Aviation Limited

· Arshiya International Limited

CAPITAL STRUCTURE

As on: 24.09.2012

Authorised Capital : Rs.2250.000 Millions

Issued, Subscribed and Paid-up Capital : Rs.1427.970 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.2/- each	Rs.800.000 Millions
14500000	Preference Shares	Rs.100/- each	Rs.1450.000Millions
	Total		Rs. 2250.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
216448000	Equity Shares	Rs. 2/- each	Rs.432.896 Millions
7795267	10% Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 779.527 Millions
399000	4% Non convertible Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 39.900 Millions
400000	25% Non convertible Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs.40.000 Millions
	Total		Rs.1292.323 Millions

Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
212358310	Equity Shares	Rs. 2/- each	Rs.424.717 Millions
7795267	10% Redeemable Cumulative Preference Shares	Rs. 100/- each	Rs. 779.527 Millions
399000	4% Non convertible Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 39.900 Millions
400000	25% Non convertible Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs.40.000 Millions
	Total		Rs. 1284.144 Millions

Note:

Detail of Shareholders holding more than 5% shares:

Name of Shareholders	As at 31st March,2012
	No. of Shares	% Held
(A) Equity Shareholders
1. Brij Bhushan Singal	41558130	19.57%
2. Neeraj Singal	65988640	31.07%
3. Archana Mittal	12491075	5.88%
4. Bhushan Infrastructure Private Limited	26534916	12.50%
(B) Preference Shareholders
1. Bhushan Energy Limited	1200000	13.96%
2. Bhushan Finance Limited	840000	9.77%
3. Robust Transportation Limited	531567	6.19%
4. Shri Neeraj Singal	434400	5.05%

	As at 31st March,2012
Particulars	No. of Shares	Amount (Rs. In Millions
Reconciliation of number of shares outstanding is set out
below:
(A) Equity Shares
At the beginning of the year	212358310	424.717
Add : Shares Issued	-	-
Less: Shares Cancelled	-	-
At the end of the year	212358310	424.717
(B) Preference Shares (Non Convertible Cumulative
Redeemable Preference Shares)
10% Preference Shares
At the beginning of the year	5168600	516.860
Add : Shares Issued	2626667	262.667
Less: Shares Redeemed	-	-
At the end of the year	7795267	779.527
4% Preference Shares
At the beginning of the year	900000	90.000
Add : Shares Issued	-	-
Less: Shares Redeemed	501000	50.100
At the end of the year	399000	39.900
25% Preference Shares
At the beginning of the year	800000	80.000
Add : Shares Issued	-	-
Less: Shares Redeemed	400000	40.000
At the end of the year	400000	40.000

The holders of Equity Shares has one vote for each equity shares held by them. The registerd holders of Equity Shares are entitled to dividend declared from time to time. The Preference Shareholders are entitled to pro-rata dividend in preference over Equity Shareholders. The dividend is cumulative at the rate specified against each category.

The premium on redemption of preference shares to the extent of premium received on issue will be adjusted against the security premium account and any premium paid over the above said amount shall be paid out of current appropriation / General Reserve.

The Preference Share are not convertible in Equity and are redeemable at the option of the company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital	1284.144	1151.577	791.547
2] Share Application Money	3830.100	0.000	0.000
3] Reserves and Surplus	72679.500	57852.511	39125.159
4] (Accumulated Losses)	0.000	0.000	0.000
NETWORTH	77793.744	59004.088	39916.706
LOAN FUNDS
1] Secured Loans	184897.708	123918.517	83269.600
2] Unsecured Loans	28612.020	42007.833	30771.453
TOTAL BORROWING	213509.728	165926.350	114041.053
DEFERRED TAX LIABILITIES	10388.184	6983.183	3295.382
CURRENT MATURITY OF LONG TERM BORROWINGS	(15344.104)	0.000	0.000
TOTAL	286347.552	231873.621	157253.141
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	157338.965	125662.947	20793.240
Capital work-in-progress	90686.743	73932.148	111093.250
INVESTMENTS	3294.526	2777.303	3700.446
DEFERREX TAX ASSETS	0.000	0.000	0.000
CURRENT ASSETS, LOANS and ADVANCES
Inventories	33114.261	31684.055	19626.717
Sundry Debtors	12203.763	4835.331	7339.231
Cash and Bank Balances	3349.803	350.790	1201.978
Other Current Assets	0.000	0.000	0.000
Other Non Current Assets	193.754	0.000	0.000
Loans and Advances	34326.860	13306.777	9534.157
Total Current Assets	83188.441	50176.953	37702.083
Less : CURRENT LIABILITIES and PROVISIONS
Sundry Creditors	9931.250	11253.549	9785.195
Other Current Liabilities	37681.507	8937.976	5886.141
Provisions	548.366	484.205	364.542
Total Current Liabilities	48161.123	20675.730	16035.878
Net Current Assets	35027.318	29501.223	21666.205
MISCELLANEOUS EXPENSES	0.000	0.000	0.000
TOTAL	286347.552	231873.621	157253.141

PROFIT AND LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	99414.077	69676.567	56112.687
		Other Income	273.442	695.128	1177.766
		Export Incentives	0.000	328.058	290.816
		TOTAL	99687.519	70699.753	57581.269
Less	EXPENSES
		Manufacturing and other Expenses	--	49700.687	41876.143
		Cost of Materials Consumed	55067.473	--	--
		Change in Inventories of Finished Goods, Work In Progress and Stock- in –Trade	(653.307)	--	--
		Employee Benefits Expense	1439.797	--	--
		Other Expenses	13519.329	--	--
		TOTAL	69373.292	49700.687	41876.143
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		30314.227	20999.066	15705.126
Less	FINANCIAL EXPENSES		10462.673	4464.108	2100.121
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		19851.554	16534.958	13605.005
Less/ Add	DEPRECIATION/ AMORTISATION		6199.295	2778.453	2091.356
	PROFIT BEFORE TAX		13652.259	13756.505	11513.649
Less	TAX		3417.510	3705.646	3055.683
	PROFIT AFTER TAX		10234.749	10050.859	8457.966
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		37.769	720.833	731.824
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	106.179	106.179	106.179
		Proposed Dividend on Preference Shares	0.407	37.014	2.331
		Provision for Dividend Tax	17.291	23.230	18.022
		Interim Dividend on Preference Shares	75.050	0.000	0.000
		Dividend Tax on Interim Dividend	12.193	0.000	0.000
		Transferred to Debenture Redemption Reserve	847.500	547.500	197.500
		Release from Debenture Redemption Reserve	0.000	(100.000)	0.000
		Transfer to General Reserve	9000.000	10120.000	8144.925
		Premium paid on Redemption of Preference Shares	124.589	0.000	0.000
	BALANCE CARRIED TO THE B/S		89.309	37.769	720.833
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	14553.645	12059.629	12172.763
		Interest Received	14.816	2.260	0.000
		Compensation Received	0.000	0.000	36.920
	TOTAL EARNINGS		14568.461	12061.889	12209.683
	IMPORTS
		Raw Materials	14937.369	27393.773	20160.069
		Stores & Spares	599.810	1091.688	234.727
		Capital Goods	19137.965	7861.598	5838.349
	TOTAL IMPORTS		34675.144	36347.059	26233.145
	Basic and Diluted Earnings Per Share (Rs.)		47.78	47.13	39.82

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter	31.12.2012 3^rd Quarter
Net Sales	28413.000	25542.500	25290.700
Total Expenditure	19790.600	18049.600	17472.700
PBIDT (Excl OI)	8622.400	7492.900	7818.000
Other Income	46.100	34.400	36.500
Operating Profit	8668.500	7527.300	7854.500
Interest	3778.000	2815.800	2930.100
Exceptional Items	0.000	0.000	0.000
PBDT	4890.500	4711.500	4924.400
Depreciation	2065.600	2066.100	2074.100
Profit Before Tax	2824.900	2645.400	2850.300
Tax	765.200	630.300	638.300
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	2059.700	2015.100	2212.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	2059.700	2015.100	2212.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	10.27	14.22	14.69
Net Profit Margin (PBT/Sales)	(%)	13.73	19.74	20.52
Return on Total Assets (PBT/Total Assets}	(%)	5.68	7.82	19.68
Return on Investment (ROI) (PBT/Networth)		0.18	0.23	0.29
Debt Equity Ratio (Total Debt/Networth)		2.74	2.81	2.86
Current Ratio (Current Asset/Current Liability)		1.73	2.43	2.35

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012
Term Loan
Foreign Currency Loans
From Indian Banks	1678.710
From Foreign Banks	12373.297
From Others	115.245
From Bank
Rupee Loan
Term Loan / Commercial Paper	11679.365
Foreign Currency Loans
From Indian Banks	2765.403
Total	28612.020

Notes:

(1) Guaranteed by the Personal Guarantee of One Promoter Director.

(2) Out of these Loans of Rs.10338.500 Millions (Previous Year Rs.9882.000 Millions) are guaranteed by the Personal Guarantee of Two Promoter Directors and Loans of Rs.2034.800 Millions (Previous Year Rs.1780.800 Millions) are guaranteed by the Personal Guarantee of One Promoter Director.

(3) Includes Commercial Papers Rs.6850.000 Millions (Previous Year Rs.5850.000 Millions) personally guaranteed by two promoter directors. Further Rs.1500.000 Millions (Previous Year Rs.4600.000 Millions) guaranteed by the personal guarantee of two promoter directors and Rs.3329.400 Millions(Previous Year Rs.14721.000 Millions) were personally guaranteed by one promoter director.

(4) Rs.2765.400 Millions (Previous Year Rs.1447.100 Millions) guaranteed by the personal guarantee of one promoter director. Rs. NIL (Previous Year Rs.996.600 Millions) are guaranteed by the personal guarantee of two promoter directors.

UNSECURED LOAN

(Rs. In Millions)

Particular	31.03.2011
Rupee Loans From Bank
- Term Loan / Commercial Paper *	26207.904
Foreign Currency Loans :
- From Foreign Banks **	11741.203
- From Indian Banks	3921.071
- From Others	137.655
Total	42007.833

BOARD OF DIRECTORS

Brij Bhushan Singal

As a first generation entrepreneur, Brij Bhushan Singal, Chairman of the Board has played a pivotal role in guiding Subject to its current position of strength. As a promoter director, he has been instrumental in not only shaping the physical assets of the Company but also in honing a promising leadership pool in the Company. Holding a Bachelor’s Degree in Law from Delhi University, he brings a rich experience of over five decades in the steel industry. A big admirer and advocate of technological advancements, he guides the Company in technological and equipment related aspects.

Neeraj Singal

As Vice Chairman and Managing Director, Neeraj Singal has spearheaded Subject transformation from a single plant downstream steel processor to a three locations fully integrated Steel and Power player in India. Having risen from ranks, he has served in various departments of the Company and also as executive director of Bhushan Metallics before joing the board of Subject. Holding a Bachelor’s Degree from Punjab University, he brings rich hands on experience of 25 years. As a promoter Director, he guides the Company on all operational aspects including expansion projects.

Nittin Johari

As Whole-time Director (Finance), Mr. Nittin Johari heads the finance function of the Company. A fellow member of Institute of Chartered Accountants of India, He holds a Master’s Degree in Commerce from the University of Rohilkhand at Bareilly. He brings nearly 27 years of experience in corporate finance, management information systems, budgeting, etc. Prior to joining Bhushan Steel, he has served WIMCO Limited, Century Textiles Limited and Modi Rubber Limited in various leadership roles in finance function. He is responsible for financial management, treasury, foreign exchange management of the Company, alongside legal matters.

Rahul Sen Gupta

Mr. Rahul Sen Gupta is Whole-time Director (Technical) on the Company’s Board. He holds a Bachelor's Degree in Science in Mechanical Engineering from the University of Calcutta, Kolkata. He has nearly 31 years of experience in steel industry. Prior to joining the Board, he was employed with Indian Oxygen Limited. He is responsible for project conceptualization, project planning and implementation, and technology evaluation.

Prem Kumar Aggarwal

Mr. Prem Kumar Aggarwal is Whole-time Director (Commercial) on the Board of the Company. He holds Bachelor's Degree in Science from Punjabi University and is also a fellow member of the ICAI. He has more than 30 years of experience in accounts and commercial activities, and prior to joining the Board, he has worked as an Assistant General Manager with Bhushan Industries Limited and in other capacities with Amrit Banaspati Limited and the Himachal Pradesh State Forest Corporation. He is responsible for the overseeing of commercial and legal matters involving the Company, including indirect taxation disputes in particular.

Mohan Lal

Mr. Mohal Lal is an independent Director on the Board. He holds a Master's Degree in Arts and a Bachelor's Degree in Law - both from the University of Delhi, New Delhi. He has over 63 years of experience in the field of law, particularly in income taxation. He was designated as a senior advocate.

Vinod Kumar Mehrotra

Mr. Vinod Kumar Mehrotra is an independent Director on the Board. He holds a Master's Degree in Commerce and a Bachelor's Degree in Law from the University of Delhi, New Delhi. He also holds a certified associate-ship with the Indian Institute of Banking. He has around 38 years of experience in banking industry. Prior to joining the Board, he was employed with numerous banks including the State Bank of India as Deputy Managing Director.

Brij Bihari Tandon

Mr. Brij Bihari Tandon is an independent Director on the Board. He holds a Master's Degree in Economics and a Bachelor's Degree in Law from the University of Delhi, New Delhi, as well as certificate of associate-ship from the Indian Institute of Bankers. Prior to joining the Board, he served as an officer of the Indian Administrative Service and has about 47 years of experience in that capacity. He served as the Chief Election Commissioner of India and the Election Commissioner of India, and also held numerous positions including as a member of the Delimitation Commission of India, the Secretary to the Ministry of Personnel, Public Grievances and Pensions, and the Secretary to the Ministry of Mines, Govt. of India.

Malakapalli Venkata Suryanarayana

Mr. Malakapalli Venkata Suryanarayana is an independent Director on the Board. He is a fellow member of the ICAI. He has over 35 years of experience with the Life Insurance Corporation of India where he held various positions before retiring as the Executive Director (Audit). He has been a nominee Director of the Life Insurance Corporation of India on the Board prior to joining as independent Director.

Sunita Sharma

Ms. Sunita Sharma is a nominee Director of the Life Insurance Corporation of India on the Board. She holds a Master's Degree in Science from the University of Delhi, New Delhi. She has over 32 years of working experience with the Life Insurance Corporation of India where she has worked in different departments including housing finance and accounts. She has held various positions at the Life Insurance Corporation of India such as Secretary (Personnel and Industrial Relations) and Chief (Personnel).

HIGHLIGHTS

During the year, the Company has installed the Large Dia ERW Pipe plant at Khopoli with the capacity of 0.285 MTPA.

The Gross sales of the Company have increased to Rs.107930.000 Millions, registering a growth of 42% over previous year's level of Rs.75760.000 Millions.

EXPANSION PROJECT

The company had commissioned 1.9 MTPA of HRC plant in FY 2011 at Orissa and now is in the process of enhancing the HR capacity to 4.40 MTPA, this brownfield expansion is at advance stage of implementation and trial runs are expected to start in the current financial year. With the start up of HR plant at Orissa the company's dependence on others to supply us primary steel ended, resulting full control of margins.

The company plans to utilize all its HR capacity to manufacture the downstream products as it has leadership position in value added segment for automobile and white goods sector.

At present the company has total downstream capacity of 1.54 MTPA at its Sahibabad and Khopoli plants out of which the major capacity is available to auto and white goods sector and the balance capacity is used for Galvanised and other value added products. The company has almost 100% order book for auto and white goods sector.

Further the company has started trial production of 0.45 MTPA Colled Rolled Complex. With this the company shall utilize its HR capacity of around 2 MTPA and after the expansion of HR capacity during the current financial year the company shall be long on HRC.

The company has option to sell the surplus HR in the market or to further downstream/value addition the same to capture the full value chain and maximize the margins.

In order to maintain its leadership position in this segment and to maximize the margins, the company proposes to set up the downstream capacity of 1.8 MTPA, where the company is planning to set up PLTCM of 1.8 MTPA and CAL of 1 MTPA with the capex of around Rs.60000.000 Millions to fully utilize its additional HR capacity. The PLTCM and CAL line shall have the world class facility with latest technology and lower conversion cost as compared to the existing facilities. For the output of this mill the company has entered into the technical collaboration with Sumitomo Metals, Japan which will help the company to market the product under their brand name in the overseas markets.

In addition to the above, the company shall also be completing the Coke oven plant (1.3 MTPA), Coal Washery (2.5 MTPA) and 2 DRI Kilns (aggregate capacity of 0.34 MTPA) and 197 MW Power Plant at the existing site of Integrated steel plant at Orissa.

With this the company will be able to improve in its margins.

FINANCE

During the year the Company has tied up the term loans in foreign currency and rupee for its expansion plans and for the requirement of funds for its normal capital expenditure. The Company has also tied up ECB for USD 250 Million from State Bank of India, Singapore for their Debottlenecking project at Orissa.

The Working Capital facilities for Sahibabad, Khopoli and Orissa Plants have been appraised by PNB, the lead Bank, for Rs.85890.000 Millions) (Fund Based limit of Rs.36260.000 Millions excluding export credit and Non Fund Based limit of Rs.49630.000 Millions) for the Financial year 2012-13.

CREDIT RATING

The Long Term rating of the company is Care A+ by Credit Analysis and Research Limited as per the provisions of BASEL II guidelines of RBI.

The Credit Analysis and Research Limited (CARE) has rated the short term rating at the highest rating of A1+ (A One Plus) for short term credit facilities of the company.

EXPORTS

During the year, the company has achieved the Export Turnover of Rs.14550.000 Millions. The Export Turnover of most of the Exporters in the country has a negative trend due to the recession in international market during the last year.

With a firm commitment and through sustained efforts, the company continues to maintain good rapport with Global Customers. Their quality products and timely delivery have found wide acceptance in the highly competitive international market.

Their products are being exported across the globe.

GROUP

Pursuant to intimation from the promoters, the name of the Promoters and entities comprising the 'group' as defined under the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 are disclosed herein below.

Persons constituting group coming within the definition of 'group' as defined in the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 for the purpose of Regulation 10 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 include the following:

• Bhushan Energy Limited
• Bhushan Aviation Limited
• Bhushan Buildwell Private Limited
• Bhushan Infrastructure Private Limited
• Bhushan Energy Trading Private Limited
• Bhushan Placement Services Private Limited
• Bhushan General Traders Private Limited
• hushan Consumer Electronics Private Limited

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL STEEL INDUSTRY

World crude steel production reached 1,527 Million tonnes (Mt) for the year of 2011. This is an increase of 6.8% compared to 2010 and is a record for global crude steel production.

Annual production for Asia was 988.2 Mt of crude steel in 2011, an increase of 7.9% compared to 2010. The region's share of world steel production increased slightly from 64.0% in 2010 to 64.7% in 2011.

The international steel industry has been recording a gradual improvement since 2010, with production levels rising steadily in all regions. This revival has been propelled by the global economic resurgence (as evident in rising industrial production across major geographies) as well as the government stimulus provided in key regions. The global economy is on the recovery path while advanced economies are expected to pick up growth momentum. The emerging economies will consolidate with moderate growth as the focus is shifted to contain inflation while pursuing growth.

INDIAN STEEL INDUSTRY

India is the 4th largest producer of steel in the world and produced about 72 million tonnes (MT) of steel in FY 11, thus accounting for approximately 5% of the world's total production.

Globally, with the financial crisis spilling into the real economy, demand has slowed down. However, India is the only country in the world apart from China to post a positive overall growth in crude steel production over the last year. The recovery in steel production has been aided by the improved sales performance of steel companies. China and India are expected to provide the impetus for steel demand for the next few years.

India, being one of the fastest growing countries, showed significant increase in steel consumption during the last 3-4 years. Finished steel demand in India registered a healthy growth during last 7-8 years.

Major steel consuming sectors such as construction, infrastructure, pipe and tubes and machinery recorded significant growth over the last few years, driving the country's steel demand.

DEMAND SUPPLY SCENARIO FOR FLAT PRODUCTS

During the period 2002-03 to 2010-11, the finished steel production of flat products has increased from 17.69 MT to 30.8 MT, exhibiting a CAGR of 7.2%. The demand of these products has exhibited a CAGR of 13.23% in the same time period. This emphasizes the point that the demand for flat steel products is increasing at a rapid pace, thereby creating a ready market for steel producers in flat steel segment. It is evident from the following chart that the gap in production and consumption in last 2 years have been reduced to almost NIL.

Cold Rolled Steel

The total installed capacity of CR flats in India was 15.33 million tonnes at the end of 2009-10.The production of CR flats has exhibited a CAGR of 8% from 2002-03 to 2010-11. The consumption of CR flat products exhibited a CAGR of 9.5% in the same period.

Bulk of the CR Coils/Sheets produced in the country are consumed by the Coating Sector to produce value added steel which gives higher margins. The second largest consumer of CR Coils is the automobile industry using nearly 22% of total CR Coils produced.

Galvanised Steel

The total installed capacity of Galvanised Steel in India was 5.60 million tonnes per annum at the end of 2010-ll.The production of GP/GC sheets in India has increased significantly during the recent years. Due to the long life and durability of the product, it is used massively in development of infrastructure like Airports, Metro stations etc. Major producers of galvanized steel in the country have installed state-of-the-art technologies and are now capable of producing galvanized coils for high end applications.

India's galvanized steel products have been well accepted in the global market. This is evident from the fact that the production of galvanized products is higher than the domestic demand. This excess quantity is fed into the global market especially Middle east / African markets, which are a big consumer of these products.

HR Coils

The production of HR coils has exhibited a CAGR of around 10.46% in the past 8 years. Due to the increase in demand for value added products of HR coil like Cold rolled coils and coated steel products (Galvanized steel, galume steel etc.) the production of HR coils has accelerated. The consumption of HR itself has increased over the years with use of HR galvanized sheets in automobile sector. The growth in consumption of the HR coils in the past 8 years in India has outpaced the growth in production of HR coils.

FUTURE OUTLOOK

The steel industry cycle had turned negative during the latter half of 2008-09 resulting in margin compression for all steel players due to reduction in sales volume and realizations. Indian steel companies have, however shown signs of recovery.

COMPANY'S PROSPECTS

The company is on steel growth trajectory, led by strong volume growth and backward integration:

The company commenced the implementation of its integrated steel plant at Meramandali, Orissa in January 2005 as a backward integration to produce HR Coils in phased manner. The phase I and II of the project has been installed with the production capacity of Hot Roll Coil Mill (1.90 Mtpa), Billets (3,00,000 TPA) and Power Plant (110 MW). With the start up of HR plant of 1.9 MTPA at Orissa the company's dependence on others to supply primary steel ended up resulting in full control of margins.

The Company's Brownfield project Phase III at Orissa is scheduled for completion in FY 13 which is envisaging setting up of additional 2.5 MTPA HRC Capacity in addition to Phase II capacity to ensure optimum utilization of infrastructure and resources at the existing plant to utilize the full capacity of Hot Rolling (HR) mill being implemented. The total HRC of the company shall be 4.4 MTPA once the project will be completed.

It is one of the most modern integrated steel and Power Complex which deploys best available technologies, thereby enabling Subject to produce auto grade HR Coil for the first time in India.

At a time of Economic, Industrial slowdown and uncertain socio-regulatory conditions, Subject has been investing in expansion that is nearing completion with economic growth now in sight. Subject's investments are so timed that they ensure reaping the benefits at the right time when demand is expected to rise. Subject over the period of time has added significantly to its offering right from secondary steel to primary steel and then to value-added steel to ERW Pipes and excelled on customer expectations. Today, when completion of Phase III expansion by adding 2.5 MTPA primary steel is well within site, Bhushan's strategic vision reflects in nearing truly backward and forward integrated operations.

The Company has been allocated Iron Ore Mines and Coal Mines by the Orissa Government. The work on these mines has been started and the mines are likely to be operational within 2-3 years. The Company has also acquired sizeable stake in Bowen Energy Ltd, Australia, which has the license for exploring coking coal mines in Queensland, Australia. With the development of all these mines the Company shall be able to increase the margin in future. Thus, going forward the Company is expected to show significant growth in its Topline as well as Bottom line.

PERFORMANCE

The company is engaged in Steel business, which is context of Accounting Standard (AS)-17 issued by the institute of Chartered Accountants of India is considered the only business segment. The overall operational performance of the company has been much satisfactory during the year. The plants have operated optimally during the year and there were no major break downs or shutdowns.

STATEMENT OF UNAUDITED FINANCIAL RESULT FOR THE QUARTER ENDED ON 30TH JUNE, 2012

(Rs. In Millions)

SL	PARTICULARS	QUARTER
NO.		ENDED
		30.06.2012
		(Unaudited)
1	INCOME FROM OPERATIONS
	Domestic Sales	26111.300
	Export Sales	4152.800
	Total Gross Sales of Finished Goods	30264.100
	Less : Excise Duty	2790.700
(a)	Net Sales of Finished Goods / income from operation	27473.400
	Other operating income	1000.200
	Less : Excise Duty	60.600
(b)	Net Other Operating Income	939.600
	Net Sales / Total Income from operations	28413.000
2	Expenses
	a) Consumption of Raw Materials	16696.400
	b) Purchase of Traded Goods	160.800
	c) Change in Inventories of Finished Goods,	(1388.600)
	Work in Progress and stock in trade (Increase)/ Decrease
	d) Employees Benefits Expense	429.500
	e) Depreciation and Amortisation Expense	2065.600
	f) Other Expenses	3892.500
	Total Expenses	21856.200
3	Profit from operations before other income, finance costs and exceptional items	6556.800
4	Other Income	46.100
5	Profit from ordinary activities before finance costs and exceptional items	6602.900
6	Finance Costs	3778.000
7	Profit from ordinary activities after Finance costs but before Exceptional items	2824.900
8	Exceptional items	-
9	Profit from ordinary activities before Tax	2824.900
10	Tax Expense	765.200
11	Net Profit from ordinary activities after Tax	2059.700
12	Extraordinary items (net of tax)	-
13	Net Profit for the Period	2059.700
14	Paid-up Equity Share Capital (Face Value of Rs.2/- each)	424.700
15	Reserves Excluding Revaluation Reserves	-
16	EPS (Not Annualised)
	i) Basic (Rs.)	9.58
	ii) Diluted (Rs.)	9.58

Public Shareholding
- Number of shares	67345842
- Percentage of shareholding	31.71%
Promoters and Promoter Group shareholding
a) Pledged/ Encumbered
- Number of shares	55437100
- Percentage of share (as % of the total shareholding of Promoter group)	38.23%
- Percentage of share (as % of the total share capital of the Company)	26.11%
b) Non-Encumbered
- Number of shares	89575368
- Percentage of share (as % of the total shareholding of Promoter group)	61.77%
- Percentage of share (as % of the total share capital of the Company)	42.18%

INVESTOR COMPLAINTS
Pending at the beginning of the Quarter	1
Received during the Quarter	2
Disposed of during the Quarter (Requisite documents, DD for unclaimed dividend sent. Complainants not responding)	3
Remaining unresolved at the end of the Quarter	NIL

NOTES:

1. The above results have been reviewed by Audit committee and taken on record by the Board of Directors at New Delhi on 31st July, 2012.
2. The limited review for the quarter ended on 30th June, 2012, as required under clause 41 of the listing agreement with the stock exchanges, has been carried out by the Statutory Auditors.
3. The Company is engaged in the steel business, which in the context of Accounting Standard (AS)-17, is considered the only business segment.
4. During the current quarter the company has started its new cold rolling unit.
5. Previous period / year figures have been regrouped / rearranged to make them comparable with current period / year.

Fixed Assets:

Tangible Assets

• Freehold Land
• Leasehold Land / Building
• Plant and Machinery
• Railway Siding
• Furniture and Fixtures
• Vehicles
• Office Equipment

Intangible Assets

• Computer Software

AS PER WEBSITE DETAILS:

Press Release

BHUSHAN STEEL SEEKS CONTEMPT PROCEEDINGS AGAINST ORISSA

February 06 2013

Bhushan Power and Steel (BPSL) has asked the Supreme Court to initiate contempt proceedings against the Orissa government for failing to comply with the apex court’s order that asked it to recommend BPSL’s case for grant of iron ore reserves to the Central government. The compamy needed the iron ore reserves for the company’s 2.8- million-tonne integrated steel plant at Lapanga.

BPSL claimed that the state government has only recommended grant of 96 million tonne of iron ore reserves in Keonjhar (Thakurani area) and is yet to send the recommendation for an additional 128 million tonne in Keora (Sundergarh district) to meet its requirement of 1.6 million tonne for 50 years.

On the other hand, the state government said that a recommendation had been made to the Central government for grant of mining lease to BPSL in December last year for Thakurani-A block and the same is adequate to feed the requirement of “a 2.4-MTPA steel plant for 25 years”.

A bench headed by chief justice Altamas Kabir posted the matter for hearing on March 11.

Saying that the state was obliged to make recommendation to the Centre for grant of iron ore mines, BPSL claimed that it had invested around R20,000 crore in its integrated steel plant.

BPSL senior counsel Mukul Rohtagi submitted that although about 10 months have lapsed since the judgment, the state government has only partially complied with the orders, compelling the company to procure the iron ore from the open market at exorbitant prices.

“The whole purpose of setting up the plant was that BPSL will have captive mines with assured supply, making the production economically viable…,” the contempt petition stated.

As for mining leases in Sundargarh district, a part of the area applied for overlaps with area earlier applied for by Larsen and Toubro and Tata Iron and Steel Company, and almost entirely falls within the areas notified under Rule 59(1) of the Mineral Concession Rules, 1960.

Arguing that the state had not deliberately flouted the orders, senior counsel L Nageswar Rao, appearing for the state, said that the Department of Steel and Mines is faced with difficulty in processing BPSL's recommendation due to overlapping areas.

He further said that that several applications with requests for overlapping areas are embroiled in pending litigation and, therefore, the state cannot be held responsible for delays.

The Supreme Court, while setting aside the Orissa High Court judgment that refused to interfere with the state government’s decision asking BPSL to sign a fresh MoU, had in March last year directed the Orissa government to take appropriate steps to act in line with terms of the MoU signed with the firm on May 15, 2002.

INDIA’S BHUSHAN STEEL BORROWS $200 MILLION IN U.S. DOLLAR LOANS

December 13, 2010 1:03

Bhushan Steel Limited, an Indian steelmaker, raised $200 million in dollar-denominated loans, according to data compiled by Bloomberg.

Bhushan borrowed $100 million at 489 basis points more than the London interbank offered rate, or Libor, the data show. The loans mature on Nov. 30, 2020.

The company raised another $100 million at 330 basis points above Libor in loans maturing Nov. 30, 2016. The loans were arranged by a syndicate led by the State Bank of India.

BASIS POINT-US$250M BHUSHAN STEEL LOAN SEALED; ALLOCATIONS

Monday October 15, 2012 2:54pm IST

HONG KONG, Oct 15 (Basis Point) - The US$250m multi-tranche term loan for Bhushan Steel Limited has been signed, according to sources.

As previously reported, the loan comprises three tranches: an US$83m tranche A with an average life of 5.5 years, an US$83m tranche B with an average life of 6.5 years, and an US$84m tranche C with an average life of 7.5 years.

On tranche A, sole mandated lead arranger and bookrunner State Bank of India held US$58m, while Union Bank of India joined with US$25m.

On tranche B, SBI held US$68m, while SBI International (Mauritius) Ltd took US$15m. SBI took the whole of the US$84m tranche C.

As previously reported, the facility pays a margin of 350bp over Libor. Banks were offered a top-level all-in of 377bp for tranche A, 388bp all-in for tranche B, and 393bp all-in for tranche C.

Funds from the underwritten loan are for capital expenditure. (Reporting by Maggie Chen; Editing by Gavin Stafford)

COALGATE: SKS ISPAT AND POWER, BHUSHAN STEEL MOVE COURT AGAINST DE-ALLOCATION OF COAL MINES

September 24, 2012

NEW DELHI: SKS Ispat and Power linked to tourism minister Subodh Kant Sahai, and Bhushan Steel have challenged the de-allocation of their coal blocks in the Delhi High Court, even before they received any formal communication about cancellation.

Coal blocks were de-allocated after an inter-ministerial group (IMG) reviewed the progress of work in the blocks and recommended action after hearing the response of the companies that were issued notices.

BHUSHAN STEEL’S ODISHA UNIT IN THE DOCK FOR ILLEGAL EXPANSION

July 20, 2012

Bhushan Steel Limited (BSL), a Delhi-based conglomerate, has been slapped with a case in a district court in Dhenkanal in Odisha for undertaking expansion without necessary approvals. The district collector has filed the case against BSL for violating provisions of the Environment Protection Act (EPA).

The company is operating a 3.1 million tonnes per annum (MTPA) unit at Meramandali village and has applied for environmental clearance for phase III expansion to 5.6 MTPA. While the clearance for the said expansion is pending with the Union Ministry of Environment and Forests (MoEF), the firm had started its expansion as per media reports.

Earlier in March, an MoEF expert committee had undertaken inspection of the plant. “The committee found the plant is indeed in a very poor state of environment compliance,” said one of the committee members who requested anonymity. “The committee found major violations in the plant with respect to EPA, drawing from reports by Odisha State Pollution Control Board (OSPCB) and their own site inspections,” said A K Swar, senior environment engineer of the board. “The committee also noted that the expansion was being undertaken without clearances. Hence, the committee had asked the state to take legal action against BSL. Consequently, the state environment secretary had directed the district collector to file case against BSL,” says Swar.

The Meramandali unit of BSL has a long track record of non-compliance with the environment norms. In October last year, OSPCB had served the unit with closure notice. It had also asked BSL to stop construction work on the proposed expansion till all statutory clearances have been obtained, says Sitikantha Sahu, regional officer, Angul office of the board. “Yet BSL paid no heed to the warnings, prompting MoEF to inspect and file case against BSL,” he adds. Prasanna Kumar Behera of non-profit Nature Environment and Wildlife Society in Angul laments: "The local community around BSL is already suffering due to poor environmental management. Majority of the community has also opposed the expansion in the public hearing conducted on October 28, 2010,” he says. Incidentally, Centre for Science and Environment (CSE), a Delhi-based non-profit, had also rated the plant last among 21 plants in the steel sector in the recently concluded Green Rating Project.

The plant did not participate in the voluntary disclosure initiative and obtained a meagre score of just two marks out of 100. The project brought to light BSL’s track record of non-compliance with environmental pollution norms and heightened concerns of the local community.

Interestingly, even while the several violations and problems of the plant are being reported in MoEF, pollution control board and media agencies, the stock market equity research firms are providing wrong information to the investor community. CSE found that reputed firms such as State Bank of India Capital Markets (SBI CAP) in its June 8, 2012 report and Motilal Oswal in its May 16, 2012 report have concluded that expansion of BSL Meramandali unit to 5.6 MTPA is on track and is expected to be completed by March, 2013. SBI CAP states: “Phase III expansion in its last leg”, and “Phase III is on track and is expected to come on stream by end of Financial Year 2013.” Motilal Oswal states: “Phase III expansion is expected to be commissioned in 4QFY13.” “Clearly, this shows willful ignorance of proper environmental due diligence by equity research organisations and gives a wrong signal to investors as well,” says a senior official of CSE.

Ulm, May 2011

BHUSHAN STEEL LIMITED RELIES ON PROVEN KAMAG TRANSPORT TECHNOLOGY – A NEW SLAG POT TRANSPORTER FOR INDIA

Ulm-based KAMAG Transporttechnik has supplied a new slag pot transporter to Bhushan Steel Limited in India. In so doing, the reliable KAMAG transport system was the preferred choice in spite of fierce competition from the Far East.

Extreme operating conditions with loads of hot slag reaching temperatures of up to 1,300 degrees: the tough working environment in steel plants presents a great challenge to workers and machines in equal measure. KAMAG transport systems have been developed in particular to meet the requirements of the metallurgy industry. They are unaffected by heat, dirt or heavy loads. These strong arguments convinced India´s third biggest steel producer, Bhushan Steel Limited, to use the proven technology from KAMAG. As a result, German quality craftsmanship from KAMAG won through against other manufacturers from the Far East.

The slag pot transporter for Bhushan Steel Limited is 13 metres long, 5.5 metres wide and 4.3 metres high. Weighing 86 t, the vehicle - Type 2703-100 - is suitable for carrying 18 m³ as well as 25 m³ slag pots with loads up to 100 t, and is driven by a 405 hp diesel engine. Using 2 hydraulic dumping arms which are arranged and dimensioned so that the tilting point of the pot is positioned as far away as possible from vehicle, the slag pot is picked up and, through the use of additional dumping arms, the slag pot is tilted to ensure that it is completely emptied due to dumping angles of up to 180°.

With the new generation of slag pot transporters, which will soon be in operation at Bhushan, KAMAG has re-defined the "SAFETY slag transport" issue. Safety not only for the transportation process but also for the operating personnel. Example: the entire tilting procedure is shown on a multi-functional display in the driver´s cab. As a result, the driver is kept fully up-to-date about all functional processes whether, for example, the rear support required for tilting operations has been extended or if the locking procedure for the slag pot has taken place correctly. In addition, the new industry transporter has, among other things, a closed prime mover covering, protective roof complete with border strip and an emergency operation system which functions independent of the on-board electronics.

Slag pot transporters from KAMAG are used in many foundries and steel mills around the world. They have had a decisive influence on the shaping of modern and cost-effective transportation of molten slag. As the transport of molten slag is one of the most challenging tasks in metallurgical plants, no transportation job requires as much concentration and attention from the service personnel as this. The new generation of slag pot transporter - the 2700 series - is based on over 40 years of experience which KAMAG has gained as one of the leading manufacturers of special vehicles. Other transport vehicles are available which round off the KAMAG programme for industrial logistics. Ladle transporters and industrial lift transporters in foundries and steel plants, ship section lift transporters in shipyards and modular transporters in the off-shore industry are daily features in this industry. Since the beginning of 2010, modular-designed road vehicles have been part of KAMAG Transporttechnik´s product portfolio: the SCHEUERLE-KAMAG K25 as well as an additional platform trailer with a low overall height, the K22. Both types of vehicle are based on a common development platform within the TII Group.

SKS ISPAT, BHUSHAN STEEL MAY LOSE COAL BLOCKS

September 16, 2012

The Zohra-Chatterjee-headed Inter-Ministerial Group (IMG) is learnt to have recommended the cancellation of two more coal blocks, including the Fatehpur mine allocated to the controversial SKS Ispat, which was linked to Sudhir Kant Sahay, brother of Union Tourism Minister Subodh Kant Sahay, and the other one to Bhushan Steel and Strips Limited It also recommended forfeiture of bank guarantee for the recipients of two other blocks.

However, the fate of the Gourangdih ABC block in West Bengal, owned by the Sajjan-Jindal-owned JSW Steel Limited and Himachal EMTA, was not known. However, government sources said the IMG had recommended the cancellation of this block also.

The IMG, which met here for the third consecutive day on Saturday, reviewed allocations of four coal blocks and recommended de-allocation of two blocks. This included SKS Ispat, in which Mr. Sudhir Kant Sahay is a promoter and honorary executive director. The decision to de-allocate the Fatehpur block in Chhattisgarh should come as a sigh of relief for the beleaguered Tourism Minister. SKS Ispat had bagged this block on June 2, 2008 with extractable reserves of 87.6 million tones.

Similarly, the IMG also recommended de-allocation of the New Patrapara coal block allotted to the Pradeep-Khaitan-promoted Bhushan Steel and Strips and others in 2006. The block had huge extractable reserves of around 316 million tonnes. The IMG recommended that the bank guarantees of the Bijahan and Radhikapur East coal blocks in Odisha, allocated to Bhushan Power and Steel and Tata Sponge Iron Limited, be forfeited. The Bijahan block was allocated in 2006 and holds total extractable reserves of 161 million tonnes. The Tata-group-owned Radhikapur East block holds extractable reserves up to 105.24 tonnes.

The IMG already recommended cancellation of coal blocks held by four private companies, namely Castron Mining Limited, Field Mining and Ispat Limited, DOMCO Smokeless Fuels Private Limited and Shree Virangana Steels Limited the CAG report presented to the Parliament on August 17 said coal block allocations led to a presumptive loss of Rs.1.86 lakh crore. The IMG has forwarded its recommendations to the Coal Ministry, which is expected to take further action in the matter on Monday, September 17.

BHUSHAN STEEL’S ODISHA UNIT IN THE DOCK FOR ILLEGAL EXPANSION

July 20, 2012

Bhushan Steel Limited (BSL), a Delhi-based conglomerate, has been slapped with a case in a district court in Dhenkanal in Odisha for undertaking expansion without necessary approvals. The district collector has filed the case against BSL for violating provisions of the Environment Protection Act (EPA).

The company is operating a 3.1 million tonnes per annum (MTPA) unit at Meramandali village and has applied for environmental clearance for phase III expansion to 5.6 MTPA. While the clearance for the said expansion is pending with the Union Ministry of Environment and Forests (MoEF), the firm had started its expansion as per media reports.

Earlier in March, an MoEF expert committee had undertaken inspection of the plant. “The committee found the plant is indeed in a very poor state of environment compliance,” said one of the committee members who requested anonymity. “The committee found major violations in the plant with respect to EPA, drawing from reports by Odisha State Pollution Control Board (OSPCB) and their own site inspections,” said A K Swar, senior environment engineer of the board. “The committee also noted that the expansion was being undertaken without clearances. Hence, the committee had asked the state to take legal action against BSL. Consequently, the state environment secretary had directed the district collector to file case against BSL,” says Swar.

The Meramandali unit of BSL has a long track record of non-compliance with the environment norms. In October last year, OSPCB had served the unit with closure notice. It had also asked BSL to stop construction work on the proposed expansion till all statutory clearances have been obtained, says Sitikantha Sahu, regional officer, Angul office of the board. “Yet BSL paid no heed to the warnings, prompting MoEF to inspect and file case against BSL,” he adds. Prasanna Kumar Behera of non-profit Nature Environment and Wildlife Society in Angul laments: "The local community around BSL is already suffering due to poor environmental management. Majority of the community has also opposed the expansion in the public hearing conducted on October 28, 2010,” he says. Incidentally, Centre for Science and Environment (CSE), a Delhi-based non-profit, had also rated the plant last among 21 plants in the steel sector in the recently concluded Green Rating Project.

The plant did not participate in the voluntary disclosure initiative and obtained a meagre score of just two marks out of 100. The project brought to light BSL’s track record of non-compliance with environmental pollution norms and heightened concerns of the local community.

Interestingly, even while the several violations and problems of the plant are being reported in MoEF, pollution control board and media agencies, the stock market equity research firms are providing wrong information to the investor community. CSE found that reputed firms such as State Bank of India Capital Markets (SBI CAP) in its June 8, 2012 report and Motilal Oswal in its May 16, 2012 report have concluded that expansion sof BSL Meramandali unit to 5.6 MTPA is on track and is expected to be completed by March, 2013. SBI CAP states: “Phase III expansion in its last leg”, and “Phase III is on track and is expected to come on stream by end of Financial Year 2013.” Motilal Oswal states: “Phase III expansion is expected to be commissioned in 4QFY13.” “Clearly, this shows willful ignorance of proper environmental due diligence by equity research organisations and gives a wrong signal to investors as well,” says a senior official of CSE.

CMT REPORT (Corruption, Money Laundering and Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.28
UK Pound	1	Rs.82.06
Euro	1	Rs.70.23

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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		62

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 and 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.