MIRA INFORM REPORT

Report Date :

29.11.2013

IDENTIFICATION DETAILS

Name :	MONNET ISPAT AND ENERGY LIMITED (w.e.f 12.01.2006)
Formerly Known As :	MONNET ISPAT LIMITED
Registered Office :	Monnet Marg, Mandir Hasaud, Raipur – 492101, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.02.1990
Com. Reg. No.:	53-009826
Capital Investment / Paid-up Capital :	Rs. 2387.489 Millions
CIN No.: [Company Identification No.]	L02710CT1990PLC009826
TAN No.: [Tax Deduction & Collection Account No.]	DELM09084F
PAN No.: [Permanent Account No.]	AAACM0501D
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturers of Sponge Iron, Steel and Ferro Alloys.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 110000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a flagship company of the “Monnet Group”. It is a well established and reputed company having a fine track record. There appears slight dip in profit of the company during the financial year 2013. However, the rating takes in to consideration the company’s consistent track record of profitable operations, backed by captive coal mines as well as power plant, diversified product mix. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank Facilities : AA-
Rating Explanation	High degree of safety and very low credit risk.
Date	7 December 2012

Rating Agency Name	CARE
Rating	Short term Bank Facilities : A1+
Rating Explanation	Very Strong degree of safety and lowest credit risk
Date	7 December 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 DECLINED

Management non-cooperative

Tel. No.: 91-771-2471334

LOCATIONS

Registered Office / Factory 1:	Monnet Marg, Mandir Hasaud, Raipur – 492101, Chhattisgarh, India
Tel. No.:	91-771-2471334-339
Fax No.:	91-771-2471250
E-Mail :	monnet@monnetgroup.com monnetraipur@monnetgroup.com
Website :	http://www.monnetgroup.com
Corporate Office :	Monnet House, 11, Masjid Moth, Greater Kailash Part-ll, New Delhi-110048, Delhi, India
Tel. No.:	91-11-29218542-46
Fax No.:	91-11-29218541
E-mail :	monnet@monnetgroup.com isc_miel@monnetgroup.com
Factory 2 :	Village - Naharpali, Tehsil - Kharsia, District Raigarh - 496661, Chhattisgarh, India
Tel No. :	91–7762-275451/ 52
Fax No. :	91–7762-275455
E-Mail :	mielrgh@monnetgroup.com
Factory 3 :	Monnet Power Company Limited Village – Malibrahmani, P. O. – Nisha – 759130 Via – Kosala, District. -Angul, Orissa, India
Tel No. :	91-6764-224001 / 224002
Fax No. :	91-6764-224003
E-Mail :	angul@monnetgroup.com

DIRECTORS

As on: 31.03.2012

Name :	Mr. Sandeep Jajodia
Designation :	Chairman and Managing Director
Name :	Mr. C. P. Baid
Designation :	Dy. Managing Director
Name :	Mr. G.C. Mrig
Designation :	Non Executive Independent Director
Name :	Mr. Amit Dixit
Designation :	Non Executive Independent Director
Name :	Mr. Ajay Relan
Designation :	Non Executive Independent Director
Name :	Mr. Vikram Deswal
Designation :	Non Executive Independent Director
Name :	Mr. J. P. Lath
Designation :	Other Non Executive director

KEY EXECUTIVES

Name :	Mr. M.P. Kharbanda
Designation :	Company Secretary
Board Committees
Audit Committee	Mr. G.C. Mrig, Chairman Mr. Ajay Relan, Member Mr. J.P. Lath, Member Mr. M.P Kharbanda, Secretary
Shareholders / Investors' Grievance Committee	Mr. J.P. Lath Mr. C. P. Baid
Remuneration Committee	Mr. G.C. Mrig Mr. Vikram Deswal Mr. J.P. Lath
Finance Committee	Mr. Sandeep Jajodia Mr. C.P. Baid Mr. J.P. Lath
Executive Committee	Mr. Sandeep Jajodia Mr. C.P. Baid Mr. J.P. Lath
Share Transfer Committee	Mr. J.R Lath Mr. C.P. Baid Mr. M.P Kharbanda
Name :	Mr. Devi Mathur
Designation :	Senior Vice President of Finance of Account

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	254448	0.40
Bodies Corporate	25669725	40.28
Any Others (Specify)	6046168	9.49
Directors/Promoters & their Relatives & Friends	6046168	9.49
Sub Total	31970341	50.16
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	31970341	50.16
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9713	0.02
Financial Institutions / Banks	62000	0.10
Insurance Companies	465161	0.73
Foreign Institutional Investors	24677624	38.72
Sub Total	25214498	39.56
(2) Non-Institutions
Bodies Corporate	4310946	6.76
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1802324	2.83
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	274979	0.43
Any Others (Specify)	158593	0.25
Hindu Undivided Families	59701	0.09
Non Resident Indians	96596	0.15
Directors & their Relatives & Friends	2296	0.00
Sub Total	6546842	10.27
Total Public shareholding (B)	31761340	49.84
Total (A)+(B)	63731681	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)	63731681	0.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Sponge Iron, Steel and Ferro Alloys.

Products :

Item Code No. (ITC Code)	Product Description
72.07	Mild Steel
72.03	Sponge Iron
72.02	Sponge Iron
NA	Power

PRODUCTION STATUS (AS ON 31.03.2012)

A. Production	Units	31.03.2012
- Sponge Iron	MT	742194
- MS /SS Products	MT	98061
-Structural Steel	MT	81204
- Ferro Alloys	MT	8993
-Coal	MT	850505
- Power	‘000 Units	858238

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank

· State Bank of Bikaner and Jaipur

· State Bank of India

· State Bank of Patiala

· IDBI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term Borrowing
Non-Convertible Redeemable Debenture of par	6050.006	3000.003
Foreign currency loans	12074.424	12124.091
Rupee loans	20936.519	11887.855
Short term Borrowing
Working capital from banks	6059.667	1892.165
From Banks	500.000	1500.000
From Institutions and Others	0.000	1000.000
Total	45620.616	31404.114
Note: Term Loans, External Commercial borrowings (ECB) and Non Convertible Debentures (NCD) from financial institutions / Banks, are secured by first charge on all immovable and movable assets (present and future) of the Company (subject to prior charges on movables in favour of working capital banks) ranking pari - passu with the charges created in favour of participating financial institutions. Some of the loans /facilities are further guaranteed by the Managing Director of the Company. The repayment terms and rate of interest of term loans are as under: a) Rupee Term Loan for Steel Project:- The Company has an outstanding balance of Rs. 21556.100 Millions of Rupee term loan with interest band of 1.50% to 2.25% plus base rate. These loans are repayable in 26 variable quarterly installments commencing from Financial Year 2013.14. b) Rupee Term Loan for Power Project:- The Company has an outstanding balance of Rs. 969.300 Millions of Rupee term loan with interest band of 1 1.75% to 12.95% repayable by Financial Year 2015-16. c) Foreign Currency Term Loan $ 192 Million: the loan is repayable in installments from Financial Year 201 4-1 5 to Financial Year 201 9-20 and carries interest rate of libor plus 4.25 to 4.6%. d) Foreign Currency Term Loan 212 Million: the loan is repayable in installments from 2014-15 to FY 2019-20 and carries interest rate of libor plus 4.25 to 6.6%. e) USD 45 million repayable in FY 2013-14 with interest rate libor + 1.90%

Banking Relations :	--
Auditors :
Name :	O.P. Bagla and Company Chartered Accountants
Address :	New Delhi, India
Enterprise where KMP has significant influence:	Ø A.P. Coal Washeries Private Limited Ø Monnet Global Limited Ø Monnet Overseas Limited Ø Monnet Daniel Coal Washeries Private Limited Ø Monnet Power Company Limited Ø Monnet Cement Limited Ø Monnet Enterprises PTE Limited Ø Rameshwaram Steel and Power Private Limited Ø Chattel Constructions Private Limited Ø Chomal Exports private limited Ø Monnet Sports Foundation
Subsidiary of Subsidiaries :	Ø Pt Monnet Global Ø Monnet Enterprises DMCC Ø Pt. Serwa Sembada Karya Bumi Ø Monnet Global Liberia Limited Ø Monnet Global Guinea S.A. Ø Monnet Global Mali S.A. Ø Monnet Global Colombia S.A.S.
Joint Ventures :	Ø MP Monnet Mining Company Limited Ø Mandakini Coal Company Limited Ø Urtan North Mining Company Limited Ø Monnet Ecomaister Enviro Private Limited
Associates:	Ø Orissa Sponge Lron and Steel Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
82000000	Equity Shares	Rs. 10/- each	Rs. 820.000 Millions
17500000	Preference share	Rs. 100/- each	Rs. 1750.000 Millions
	Total		Rs. 2570.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
63731681	Equity Shares	Rs.10/- each	Rs. 637.317 Millions
	Add: Shares forfeited amount originally paid up		Rs. 0.172 Million
17500000	Preference share	Rs. 100/- each	Rs. 1750.000 Millions
	Total		Rs. 2387.489 Millions

Reconciliation of shares outstanding at the beginning and at the end of the reporting period is given below:

Particulars	31.03.2013
Equity share
Number of shares outstanding as at the beginning of the year	64337807
Shares issued during the year	0
Shares bought back during the year	606126
Number of shares outstanding as at the closing of the year	63731681
Preference share
Number of shares outstanding as at the beginning of the year	0
Shares issued during the year	17500000
Number of shares outstanding as at the closing of the year	17500000

The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meeting of shareholders.

Particulars	% of Shareholding 31.03.2013
Pavitra Commercials Limited	0.00
Cecil Webber Engineering Limited	0.71
Kamdhenu Enterprise Limited	0.00
Udhyam Merchandise Private Limited	38.69
Vistabrook Limited	5.95
Blackstone GPV Capital Partners Mauritius	7.17
Deutsche Securities Mauritius Limited (FII Custodian)	7.87
Preference share
Monnet Industries Limited	100.00

The Company has issued the following shares for a consideration other than cash or bonus shares during the immediately preceding 5 years:

47,22,539 equity shares of t10 each were allotted as fully paid up for consideration other than cash pursuant to scheme of amalgamation of M/s. Mounteverest Trading and Investment Limited with the Company as per order dated 19-11-2010 passed by Honourable High Court of Chattisgarh.

The company has bought back 1894385 equity share during the last five year

Preference share were issued on 30^th March 2013 for the period of 9 year with periodical put and call options.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2387.489	643.550	643.550
(b) Reserves & Surplus	25160.119	22959.944	20257.806
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	27547.608	23603.494	20901.356
(3) Non-Current Liabilities
(a) long-term borrowings	40324.249	28511.949	16373.824
(b) Deferred tax liabilities (Net)	1661.221	1504.990	1412.382
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	60.086	62.379	33.621
Total Non-current Liabilities (3)	42045.556	30079.318	17819.827
(4) Current Liabilities
(a) Short term borrowings	13991.782	9831.952	9689.749
(b) Trade payables	1244.162	611.827	1223.573
(c) Other current liabilities	8774.206	4776.579	1770.110
(d) Short-term provisions	112.573	186.467	373.875
Total Current Liabilities (4)	24122.723	15406.825	13057.307
TOTAL	93715.887	69089.637	51778.490
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13875.021	13786.959	10935.681
(ii) Intangible Assets	0.000	0.538	1.451
(iii) Capital work-in-progress	36825.919	20219.300	10653.295
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	9314.971	5902.802	5167.046
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	08096.082	4433.586	4714.504
(e) Other Non-current assets	836.178	797.352	11.607
Total Non-Current Assets	68948.171	45140.537	31483.584
(2) Current assets
(a) Current investments	0.995	10.259	333.045
(b) Inventories	7790.413	5623.675	3604.253
(c) Trade receivables	2458.499	1788.205	1897.968
(d) Cash and cash equivalents	7191.707	8733.295	6869.492
(e) Short-term loans and advances	7218.931	7724.404	7566.719
(f) Other current assets	107.171	69.262	23.429
Total Current Assets	24767.716	23949.100	20294.906
TOTAL	93715.887	69089.637	51778.490

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	19574.335	18973.846	15730.493
		Other Income	708.346	631.536	293.217
		TOTAL (A)	20282.681	19605.382	16023.710
Less	EXPENSES
		Cost of materials consumed	11736.906	12079.516
		Changes in inventories	7.695	(661.229)
		Employee benefit expense	1084.731	945.380
		Other Expenses	1988.229	1863.254
		TOTAL (B)	14817.561	14226.921	11359.811
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5465.120	5378.461	4663.899
Less	FINANCIAL EXPENSES (D)		1192.091	867.022	309.952
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4273.029	4511.439	4353.947
Less/ Add	DEPRECIATION/ AMORTISATION (F)		888.980	741.068	738.638
	PROFIT BEFORE TAX (E-F) (G)		3384.049	3770.371	3615.309
Less	TAX (H)		880.856	881.766	803.732
	PROFIT AFTER TAX (G-H) (I)		2503.193	2888.605	2811.577
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11980.410	9883.160	8067.514
Less	APPROPRIATIONS
		Dividend	95.600	160.439	321.689
		Dividend on Preference Shares	0.600	0.000	0.000
		Tax on Dividend	16.400	26.027	52.186
		Dividend paid	112.600	0.000	25.030
		Transfer to General Reserve	251.000	289.000	282.000
		Transfer to Debenture Redemption Reserve	0.000	315.889	315.026
	BALANCE CARRIED TO THE B/S		14007.403	11980.410	9883.160
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	448.682	987.999	813.119
	IMPORTS
		Raw Materials	0.000	0.000	0.000
		Capital Goods including Spares	1874.671	1456.898	1018.015
	TOTAL IMPORTS		1874.671	1456.898	1018.015
	Earnings Per Share (Rs.)
	Basic		39.07	44.90	48.61
	Diluted		37.83	43.48	46.91

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	12.34	14.73	17.55
Net Profit Margin (PBT/Sales)	(%)	17.29	19.87	22.98
Return on Total Assets (PBT/Total Assets}	(%)	7.11	8.78	10.05
Return on Investment (ROI) (PBT/Networth)		0.12	0.16	0.13
Debt Equity Ratio (Total Debt/Networth)		1.97	1.62	1.25
Current Ratio (Current Asset/Current Liability)		1.02	1.55	1.55

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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 LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term Borrowing
Rupee loans	1263.300	1500.000
Short term borrowings
0% Fully Convertible Debenture of Rs. 1000/- each.	392.625	392.625
Foreign currency loans	2925.382	536.683
Rupee loans	4114.108	4510.479
Total	8695.415	6939.787
Note: Working capital facilities from banks are secured by first charge on movable current assets and second charge on all immovable assets of the Company. These working capital loans are further guaranteed by Managing Director of the Company.

STATUS OF EXPANSIONS

STEEL

The company has implemented the integrated steel project at Raigarh. As the project has multiple models leading to the production of both long and Flat products, stabilizing the various processes might require fixing or addressing technical problems. Moreover, the Company plans to steadily introduce the new products in the market to ensure the positive response in view of the pressure on the demand in the industry. It is, however, hopeful that the above does not pose any serious issues.

POWER (MONNET POWER COMPANY LIMITED) – TECHNICAL UPDATE

The boiler drum lifting for both, Unit 1 and Unit 2, were completed in the year 2012.Boiler hydro-test for Unit 1 has been completed in April, 2013. The foundation works for ESP has been completed and structural work is at advanced stage of completion. The ESP control room panel erection works is under progress. Turbine erection for Unit 1 is in progress and generator stator erection has already been completed. Condenser erection for Unit 1 has been completed and hydro-test is in progress and Condenser erection for Unit 2is in progress. The shell casting for chimney upto 275 meters has already been achieved, flue cane fabrication has been completed and flue cane erection upto 255 meters has already been achieved. The civil works for cooling tower and mechanical erection is in progress. The tower erection for switchyard has been completed and stringing works, equipment erection and panel erection is in progress. The raw water reservoir compartment#2 has already been completed and civil works is in progress for raw water reservoir compartment #1. For water intake system intake water pump house raft has been completed and pipe laying activity for water intake system is in progress.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The steel industry globally has been passing through challenging times for almost two years on account of economic slowdown, falling investment rate and overall pressure on the commodities. Indian Steel Industry has become completely integrated with the global industry and the outlook of the industry is not only influenced by the global factors but strongly correlates and tracks the global developments in the industry and economy.

The potential for the Indian Steel industry to grow is enormous on account of huge bankable reserves of coal and iron-ore and the potential investment demand from the development of the Infrastructure and allied industries. The plan layout for the industry set by the Government was targeted to achieve a capacity of 95 million tonnes by April-December, 2012-13. However, global slowdown and the domestic deceleration in economic activity in last few years have witnessed a sharp decline in the investment demand and capital formation and as such growth in the Industry also slowed down considerably. Issues such as long and tedious form of land acquisition and host of regulatory approvals at the Central and State level Governments consuming inordinate delayis impacting the growth of steel industry in the Country. Coupled with that, the Indian mining sector has also been plagued by regulatory hurdles and a unclear policy framework.

Notwithstanding above, Indian policy makers would be forced to seriously pursue the objective of streamlining the road map of easy approval system and to secure the development of core sector in India. India’s GDP growth is hugely dependent on the manufacturing activity which in turn will be led only by growth of the core sector in the country. Therefore, the outlook for the steel industry as a whole remains buoyant in the medium term and inspiring to plan for fresh investments to the existing steel capacity in the Country.

India also ranked 4th largest producer of crude steel in the world and it continues to retain the position of largest producer of DRI (sponge iron) in the world mainly on account of domestic availability of thermal coal and iron ore, the key resources for sponge iron. India’s capacity of crude steel production has expanded from 51.17 MT in2005-06 to 91.66 MT in April-December, 2012-13. During the same period, the production of crude steel grew from 46.46 MT to 73.79 MT at an annual growth of 8%. Per capita consumption of steel has registered an annual growth of 7.6% and has increased to 59 kg sin 2011-12 from 38 kgs during 2005-06.

The production of finished steel grew to 73.42 MT during 2011-12 as against 46.57 MT in2005-06 with an annual growth of 7.9% and the consumption of finished steel grew by 9.4%during these six years. During April-December 2012-13, export of finished steel stood at3.78 million tonnes, thus registering a growth of 24% compared to last year while 5.79million tonnes of steel was imported during the same period, thus registering a growth of16.2% compared to last year, registering a jump of about 1 million ton during FY 2012-13.Concessional duties being extended by India under FTAs to countries like South Korea and Japan are the primary reason behind jump in imports. On the other hand, India continues to be net exporter of pig iron for which main contribution is made by private sector.

OPPORTUNITIES AND THREATS

India’s GDP growth is likely to move higher in the coming years due to compulsive focus by Policy Makers for development of Infrastructures and other Sectors to provide jobs / employment to millions of qualified youth coming out of colleges and institutions in India.

Capacity expansions are expected to continue for meeting the anticipated demand that is likely to come from various sectors, mainly rural sector which has not yet got the requisite exposure to multi-faceted use of steel. India has enormous scope and untapped potential to increase steel consumption in almost all sectors, especially in automobiles, engineering industries, irrigation and water supply. India has rich mineral resources and has fourth largest iron ore reserves. Besides, India has third largest pool of technical manpower after United States and the erstwhile USSR. Expected increase in the investments in infrastructure projects and expected growth in housing sector, urbanization of rural India strengthen the industry prospects.

The Government has earmarked USD 1 trillion for investment in infrastructure and construction during 12th Five Year Plan. This will boost the steel demand by approximately40 million tonnes. As per World Steel Association estimates, 5.9% growth is projected in the Indian Steel Industry during FY 2013-14. The Planning Commission has approved a total outlay of Rs. 909746.400 millions of Internal and Extra Budgetary Resources for Central Sector Schemes and Rs. 2000.000 millions for Centrally Sponsored Scheme for 12th Five Year Plan (2012-17).Indian Government has recently taken several reformist measures such as containment of fuel subsidy, FDI in retail etc. Besides, India has so far experienced good monsoon that will boost rural income. These factors are expected to help push India’s GDP grow that the rate of 6.4 per cent.

OUTLOOK

The revival in the economy of US in the last twelve months where the GDP growth has accelerated to 2.5% and is further expected to grow to 3.5% will provide a big impetus to the world growth. Besides, China, the other major economy, is re-energizing its efforts to lift the growth in the country to generate jobs and employment for its ever increasing work force in the country. Similarly, Japan, of late, has also liberalized the financial markets to provide enough liquidity to boost the growth in the country. The uncertainty in the Europe is also settling down and the European Union is collectively trying to push the growth in the region.

Back home, the economic activity in the country is expected to accelerate post the General Elections at the Centre and in the States. The GDP growth is likely to inch higher as a consequence of various initiatives taken by the Government.

Currently, the Focus of the Government and Central Bank in India is for monetary and fiscal consolidation likely to attract FDI and foreign capital which is desperately required for pushing the growth in the country.

The aggregation of the above factors at the global and local levels provide a very optimistic projection of the industry’s future.

CONTINGENT LIABILITIES:

(Rs. in millions)

Particulars	31.03.2013
Claims against the company not acknowledged as debt
- In respect of disputed Excise Demands	171.402
- In respect of disputed Sales Tax Demands	57.940
- In respect of disputed Entry Tax Demands	25.951
- In respect of disputed Income Tax Demands	1686.956
- In respect of disputed Demands for water charges by Water Resources Division.	123.809
- In respect of electricity Duty on generation of power	440.756
- Other claims against the Company not acknowledged as debt.	511.107

STATEMENT OF STANDALONE AND CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 30^TH JUNE, 2013

(Rs. In Millions)

SLNo.	Particulars	As on 30.06.2013
1	Income from Operations
	(a) Net Sales/Income from Operations (Net of excise duty)	46.989
	(b) Other Operating Income	1.027
	Total income from operations (net)	48.016
2	Expenses
	(a) Cost of Materials consumed	35.387
	(b) Purchase of stock-in-trade	0.000
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(6.524)
	(d) Employee benefits expenses	2.687
	(e) Depreciation and amortization expense	2.640
	(f) Other expenses(Any item exceeding 10% of the total expenses relating to continuing operations to be shown separately)	4.994
	Total Expenses	39.184
3.	Profit / (Loss) from operations before other income, finance costs and exceptional items (1-2)	8.832
4	Other Income	2.362
5	Profit / (Loss) from ordinary activities before finance costs and exceptional items (3 + 4)	11.194
6	Finance Costs	3.948
7	Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5 + 6)	7.246
8	Exceptional Items	0.000
9	Profit / (Loss) from ordinary activities before tax (7 + 8)	7.246
10	Tax expense	1.996
11	Net Profit / (Loss) from ordinary activities after tax (9 + 10)	5.250
12	Extraordinary items (net of tax expense Rs. Millions)	0.000
13	Net Profit / (Loss) for the period (11 +12)	5.250
	Cash Profit	8.266
14	Paid-up equity share capital (Face Value Rs.10/- per Share fully paid-up)	6.373
15	Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year
16	Earnings Per Share (EPS) (being same before and after extraordinary items) of Rs. 10/- each (not Annualized)
	(a) Basic	8.24
	(b) Diluted	7.98
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of Shares	31921340
	- Percentage of Shareholding	50.09
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	- Number of Shares	Nil
	- Percentage of Shares (as a % of total shareholding of promoter and promoter group)
	- Percentage of Shares (as a % of total share Capital of the Company)
	b) Non-Encumbered
	- Number of Shares	31810341
	- Percentage of Shares (as a % of total shareholding of promoter and promoter group)	100.00
	- Percentage of Shares (as a % of total share Capital of the Company)	49.91

PARTICULARS	3 Months Ended 31.06.2013
Pending at the beginning of the quarter	34
Received during the quarter	31
disposed off during the quarter	53
Remaining unresolved at the end of the quarter	12

AUDITED SEGMENT-WISE REVENUE, RESULTS, CAPITAL EMPLOYED FOR THE QUARTER AND YEAR ENDED 30^TH JUNE 2013

(Rs. In Millions)

SI. No.	Particulars	Quarter ended 31.06.2013
1	"Segment Revenue (Net Sales / Income from each segment should be disclosed under this head)" (a) Power	7.778
	(b) Steel	43.699
	(c) Unallocated	0.000
	Total	51.477
	Less: Inter Segment Revenue	3.461
	Net Sales / Income From Operations	48.016
2	Segment Results (Profit) (+) / Loss (-) before tax and interest from each segment) (a) Power	0.954
	(b) Steel	7.878
	(c) Unallocated	0.000
	Total	8.832
	Less: i) Financial Charges	3.948
	ii) Un-allocable Expenditure net off	0.000
	ii) Un-allocable income	2.362
	Total Profit Before Tax	7.246
3	"Capital Employed (Segment assets - Segment Liabilities)" (a) Power	64.298
	(b) Steel	216.427
	(c) Unallocated	--
	Total	280.725

NOTE:

These unaudited Financial Results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors of the Company held on 14^TH August 2013.

The company does not have any exceptional of extraordinary item to report for the above period.

The figures for the quarter ended March 31, 2013 are the balancing figures between audited figures in respect of the full financial year and the unaudited year to date figures upto the quarter of that financial year.

The figures for the previous periods are re-classified / rearranged / re-grouped, wherever necessary, to correspond with the current period's classification / disclosure.

FIXED ASSETS:

Tangible assets:

Ø Land and Site Development

Ø Lease hold land

Ø Railway Siding

Ø Building

Ø Plant and Machinery

Ø Office Equipment

Ø Furniture and Fixtures

Ø Vehicle

Intangible assets:
Ø Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No 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. 62.39
UK Pound	1	Rs. 101.80
Euro	1	Rs. 84.75

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	DPH

SCORE & 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	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		60

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.