MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	UTTAM VALUE STEELS LIMITED
Formerly Known As :	LLOYDS STEEL INDUSTRIES LIMITED
Registered Office :	4^th Floor, Uttam House, 69, P.D Mello Road, Mumbai, 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.04.1970
Com. Reg. No.:	11-014621
Capital Investment / Paid-up Capital :	Rs. 12051.673 Millions
CIN No.: [Company Identification No.]	L27100MH1970PLC014621
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of manufacturing Steel and Capital Equipments and Turnkey Projects.
No. of Employees :	1350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 18000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. There appears accumulated losses recorded by the company. Rating also takes into consideration volatility in raw material prices material prices in steel industry. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: BBB -
Rating Explanation	Moderate credit quality and average credit risk.
Date	11.07.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	11.07.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY

Name :	Mr. Shah
Designation :	Accounts Departments
Contact No.:	91-22-30418111
Date :	09.10.2013

LOCATIONS

Registered Office :	4^th Floor, Uttam House, 69, P.D Mello Road, Mumbai, 400009, Maharashtra, India
Tel. No.:	91-22-30418111
Fax No.:	91-22-30418260
E-Mail :	ram@uttamgalva.com
Factory 1 :	Uttam Nagar, Bhugaon Link Road, Wardha, Maharashtra, India
Factory 2 :	Plot No. A-5/5 and A-6/3 MIDC Industrial Area, Murbad District Thane, Maharashtra, India
Branches :	Located at: Delhi Ahmedabad Bangalore Indore Hyderabad Pune Chennai Nagpur Kolkatta Indore Cochin Jaipur
Market Office:	Trade World, C Wing, 16^th Floor, Kamala City, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-30418111

DIRECTORS

As on: 31.03.2013

Name :	Mr. Rajinder Miglani
Designation :	Chairman
Name :	Mr. S K Soni
Designation :	Director
Name :	Mr. B.L. Agarwal
Designation :	Director
Date of Birth/Age :	65 Years
Qualification :	B.com, LL.B.
Experience :	43 Years
Date of Appointment :	01.08.1970
Other Directorship :	Lloyds Metals and Energy Limited Vidarbha Power Limited
Name :	Mr. U N Challu
Designation :	Director
Name :	Mr. Manash Chakraborty
Designation :	Director (Nominee - Arcil)
Name :	Mr. R K Bansal
Designation :	Director (Nominee - Idbi)
Name :	Mr. Ankit Miglani
Designation :	Director
Name :	Mr. Rajiv Munjal
Designation :	Director (Commercial)
Name :	Mr. Ashok Tandon
Designation :	Director (Engg.Division)
Name :	Mr. Gursharan S Sawhney
Designation :	Group CFO

KEY EXECUTIVES

Name :	Mr. Ram Gaud
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	609472232	51.02
Sub Total	609472232	51.02
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	609472232	51.02
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	573153	0.05
Financial Institutions / Banks	205007032	17.16
Central Government / State Government(s)	1500	0.00
Insurance Companies	4389894	0.37
Foreign Institutional Investors	258101	0.02
Sub Total	210229680	17.60
(2) Non-Institutions
Bodies Corporate	269745455	22.58
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	59137278	4.95
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	32092500	2.69
Any Others (Specify)	13841348	1.16
Clearing Members	92559	0.01
Non Resident Indians	4192389	0.35
Trusts	4500	0.00
Overseas Corporate Bodies	9551900	0.80
Sub Total	374816581	31.38
Total Public shareholding (B)	585046261	48.98
Total (A)+(B)	1194518493	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)	1194518493	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Ultimate Logistics Solutions Private Limited	42,36,37,469	35.47	192160670	45.36	16.09
2	Metallurgical Engineering and Equipments Limited	18,58,34,763	15.56	143342219	77.13	12.00
	Total	60,94,72,232	51.02	335502889	55.05	28.09

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Shree Global Tradefin Limited	188274167	15.76
2	IDBI Bank Limited	150000000	12.56
3	State Bank of India	50261802	4.21
4	Trump Investments Limited	37404966	3.13
5	Ragini Trading and Investments Limited	14244686	1.19
	Total	440185621	36.85

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Shree Global Tradefin Limited	188274167	15.76
2	IDBI Bank Limited	150000000	12.56
	Total	338274167	28.32

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Metallurgical Engineering and Equipments Limited	7,00,00,000	5.86
2	Shree Global Tradefin Limited	9,65,45,130	8.08
3	Trump Investments Limited	1,42,65,409	1.19
4	Ultimate Logistics Solutions Private Limited	31,00,00,000	25.95
5	IDBI Bank Limited	15,00,00,000	12.56
	Total	64,08,10,539	53.65

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of manufacturing Steel and Capital Equipments and Turnkey Projects.
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

1350 (Approximately)

Bankers :

• State Bank of India
• Punjab and Sind Bank
• Abu Dhabi Commercial Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Term loans from banks	1655.762	1997.401
Rupee Loan from Financial Institutions	533.350	1066.667
Working capital finance from banks	0.000	238.407
Total	2189.112	3302.475

Banking Relations :	--
Auditors 1:
Name :	Todarwal and Todarwal Chartered Accountants
Address :	Mumbai, Maharashtra, India
Auditors 2:
Name :	Ernst and Young LLP Chartered Accountants
Address :	Mumbai, Maharashtra, India
Enterprise over which key management personnel /share holders /relatives have significant influence:	Uttam Galva Metallics Limited. Uttam Galva Steels Limited. Sainath Trading Company Private Limited. Kredence Multi Trading Limited. Grow well Mercantile Limited. Shree Global Tradefin Limited. (ceased w.e.f 6th December 2012)
Associates:	Indrajit Power Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000000	Equity Shares	Rs.10/- each	Rs.15000.000 millions
500000000	Preference Shares	Rs.10/- each	Rs. 5000.000 millions
	Total		Rs.20000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1194518493	Equity Shares	Rs.10/- each	Rs.11945.185 millions
2714451	Equity Shares forfeited (Amount Originally Paid up)		Rs.13.234 millions
9325420	Preference Shares (Redeemable)	Rs.10/- each	Rs. 93.254 millions
	Total		Rs. 12051.673 millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	31.03.2013
	IN Nos.	Amount (Rs. in millions)
At the beginning of the period	664518493	6645.185
Issued during the period - Preferential issue	380000000	3800.000
Issued during the period - Conversion of preference share	150000000	1500.000
Outstanding at the end of the period	1194518493	11945.185
Redeemable Preference shares
At the beginning of the period	236275420	2362.754
Less : Conversion into equity share	226950000	2269.500
Outstanding at the end of the period	9325420	93.254

Terms and Rights attached to equity shares

The company has only one class of shares having a par value at Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.

Terms and Rights attached to redeemable preference shares

The Redeemable preference shares will be redeemed with a premium of 11.50 % in 6(six) annual installments commencing from financial year 2016. No such shares shall be redeemed except out of the profits of the company which would otherwise be available for dividend or out of the proceeds of the fresh issue of shares made for the purpose of the redemption.

Equity shares in the Company held by its holding/ultimate holding company and/or their subsidiaries / associates are given below.

Name of the shareholder	As on 31.03.2013
Ultimate Logistics Solutions Private Limited	42364
Metallurgical Engineering and Equipments Limited	185835

Details of Shareholders holding more than 5 % shares in the company

Particulars	As on 31.03.2013
Equity shares of Rs.10/- each fully paid up	IN Nos.	% holding in the class
Ultimate Logistics Solutions Private Limited	18376329	27.65%
Shree Global Tradefin Limited	37404966	5.63%
	48918450	7.36%
	81500000	12.26%
Trump Investments Limited*	81500000	12.26%
Asset Reconstruction Co. India. Limited*
State Bank of India*	50261802	7.56%

* Holding less than 5 % as on 31st March 2013.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012 (9 month)	30.06.2011 (15 month)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12051.673	9021.173	6289.371
(b) Reserves & Surplus	(7423.543)	(8203.220)	(9280.222)
(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)	4628.130	817.953	(2990.851)
(3) Non-Current Liabilities
(a) long-term borrowings	3014.893	3852.639	7427.285
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	234.166	204.863	192.123
Total Non-current Liabilities (3)	3249.059	4057.502	7619.408
(4) Current Liabilities
(a) Short term borrowings	599.568	0.000	0.000
(b) Trade payables	19437.827	12943.858	12451.823
(c) Other current liabilities	2570.955	5994.738	5861.518
(d) Short-term provisions	21.618	20.474	0.000
Total Current Liabilities (4)	22629.968	18959.070	18313.341
TOTAL	30507.157	23834.525	22941.898
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	12537.715	10748.567	11482.446
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1642.342	11.351	308.962
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	16.026	25.026	25.026
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	58.542	142.559	194.380
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	14254.625	10927.503	12010.814
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	4575.117	3768.367	2767.801
(c) Trade receivables	1184.961	1192.307	2022.563
(d) Cash and cash equivalents	588.060	497.212	489.302
(e) Short-term loans and advances	9461.408	6996.411	5651.418
(f) Other current assets	442.986	452.725	0.000
Total Current Assets	16252.532	12907.022	10931.084
TOTAL	30507.157	23834.525	22941.898

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012 (9 month)	30.06.2011 (15 month)
	SALES
		Revenue from operation	63440.424	38481.637	40807.376
		Other Income	620.328	434.693	463.661
		TOTAL (A)	64060.752	38916.330	41271.037
Less	EXPENSES
		Cost of materials consumed	20402.572	15738.282	21156.524
		Purchases of Stock in Trade	33453.118	17183.856	12069.099
		(Increase)/ decrease in inventories of finished goods and work-in-progress	(935.399)	(990.103)	678.078
		Employee benefits expense	742.596	508.654	6986.655
		Other Expenses	7280.033	4927.969
		Exceptional Items ( Net )	0.000	132.240	(23.689)
		TOTAL (B)	60942.920	37500.898	40142.764
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3117.832	1415.432	1128.273
Less	FINANCIAL EXPENSES (D)		1657.550	1084.994	975.679
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1460.282	330.438	152.594
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1450.105	1064.984	1549.307
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		10.177	(734.546)	(1396.713)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		10.177	(734.546)	(1396.713)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(17191.625)	(16457.079)	(15060.366)
	BALANCE CARRIED TO THE B/S		(17181.448)	(17191.625)	(16457.079)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of export	258.477	164.501	0.000
		Brokerage and Commission	13.956	6.300	2.177
	TOTAL EARNINGS		272.433	170.801	2.177
	IMPORTS
		Raw Materials	68.137	935.102	1256.811
		Production Consumables, Stores and Spares	408.323	345.012	0.000
	TOTAL IMPORTS		476.460	1280.114	1256.811
	Earnings / (Loss) Per Share (Rs.)		0.01	(1.75)	(4.46)

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2013 1^st Quarter
Audited / Unaudited	Unaudited
Net Sales	15448.200
Total Expenditure	14778.000
PBIDT (Excl OI)	670.300
Other Income	92.600
Operating Profit	762.900
Interest	536.000
Exceptional Items	0.000
PBDT	226.900
Depreciation	398.100
Profit Before Tax	(171.200)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(171.200)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(171.200)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012 (9 month)	30.06.2011 (15 month)
PAT / Total Income	(%)	0.01	(1.89)	(3.38)
Net Profit Margin (PBT/Sales)	(%)	0.01	(1.91)	(3.42)
Return on Total Assets (PBT/Total Assets}	(%)	0.03	(3.09)	(6.18)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.90)	(0.47)
Debt Equity Ratio (Total Debt/Networth)		0.79	4.71	(2.48)
Current Ratio (Current Asset/Current Liability)		0.71	0.69	0.60

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	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 borrowings
Sales tax deferral	814.638	532.089
Sales tax loan from government of Maharashtra	11.143	18.075
Short term borrowings
Overdraft form banks	99.568	0.000
Loan from body corporate	500.000	0.000
Total	1425.349	550.164

LISTING DETAILS

Lodging No.:-

ARBPL/1118/2013

Filing Date:-

12/07/2013

Petitioner:-	WELPSUN MAXSTEEL LIMITED	Respondent:-	UTTAM VALUE STEEL LIMITED (FORMERL)
Petn.Adv.:-	WADIA GHANDY AND COMPANY
District:-	OUTSIDE MAHARASHTRA

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	ARBITRATION ACT.
Last Date:-	08/10/2013	Stage:-	FOR REJECTION [ORIGINAL SIDE MATTERS]
Last Coram:-	REGISTRAR(OS)/PROTHONOTARY AND SR. MASTER

Act :-

Arbitration and Conciliation Act 1996

Under Section:-

34

STEEL INDUSTRY SCENARIO

2012 -13 was a challenging year for the steel industry with apparent steel use increasing at the slowest rate since 2009 when global demand declined by 6.5%. This was mainly due to the Euro zone crisis which persisted throughout 2012 and whose impact was felt further. On top of this, corrective macroeconomic measures in major emerging economies also contributed to a concerted slowdown globally. However, in the early part of 2013, the key risks to the global economy – the Euro zone crisis, a hard landing for the Chinese economy, and the US fiscal cliff issue – have all stabilized considerably and they now expect a recovery in global steel demand to kick in by the second half, led by the emerging economies. Yet, the situation on the financial markets remains fragile and the Euro zone crisis is far from being solved as the recent events in Cyprus have again shown.

Apparent steel use in China is expected to grow by 3.5% in 2013 to 668.8 Mt following a 1.9% increase in 2012. In 2014, steel demand is expected to grow by 2.5% as the Chinese government’s measures to control investment in an effort to rebalance the economy will remain in place.

In India, steel demand is also expected to pick up and will grow by 5.9% to 75.8 Mt in 2013 following 2.5 % growth in 2012 as monetary easing is expected to support investment activities. In 2014, growth in steel demand is expected to further accelerate to 7% thanks to the reform measures aimed at narrowing the fiscal deficit, coupled with measures to improve the foreign direct investment climate.

OPERATIONS and OVERALL PERFORMANCE

The Company achieved a Gross Turnover of Rs. 66855.600 millions in 2012-13 as against Rs. 40530.300 millions in the previous period (9 months), showing a growth of 23 % over previous year. The operating EBIDTA for the year was Rs. 3117.800 millions as against Rs. 1547.700 millions in the previous period (9 months). The Company posted a profit of Rs. 10.100 millions during the year as against a loss of Rs. 734.500 millions in the previous period (9 months) after providing depreciation of Rs. 1450.100 millions (Previous period Rs. 1065.000 millions).

STEEL PRODUCTS

Sale of steel products during the year 2012-13 was Rs. 30333.100 millions as against the previous period 9 months) of Rs. 22396.900 millions. Export sales achieved during the year Rs. 230.700 millions as against Rs. 107.700 millions recorded during the previous period of 9 months.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

Indian Steel Industry has grown from the production of 72 million tonnes in 2011 to 76 million tonnes in 2012, a growth of 5.5%.

The Indian Steel Industry plays an important role in the country’s economic growth. The growth of the Indian Steel Industry looks positive. However, it is impeded to some extent due to higher money lending rates resulting in to high cost of capital, impacting margins as well as capital expenditure plans.

A wide range of products are manufactured by Engineering Industries in India the developments of which is dependent upon the development of core and the infrastructure sector.

SEGMENT WISE / PRODUCT WISE PERFORMANCE

The Company is mainly in the business of Manufacturing steel and Capital Equipments and Turnkey Projects. The Company has no activity outside India except export of steel products manufactured in India. Segment wise performance is given at Note No 32 of Notes to Accounts.

OUTLOOK

The outlook in the domestic steel industry looks positive. The country has acquired an important position in global steel map. The Indian Steel Industry is having Giant Steel Mills, modernization and up gradation of old steel mills improving energy efficiency and backward integration to global raw material resources.

The steel consumption in the country grew from 71 million tonnes in 2011-12 to 73.3 million tonnes in 2012-13 a growth of 3.2%. In the coming years the consumption is expected to grow at higher rates.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10450652	25/09/2013	6,120,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B85583532
2	10450654	25/09/2013	13,900,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B85583771
3	10438683	19/07/2013	1,750,000,000.00	ALLAHABAD BANK	ALLAHABAD BANK BUILDING, GROUND FLOOR, 37 MUMBAI  SAMACHAR MARG, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	B80351034
4	10439188	19/07/2013	2,000,000,000.00	CANARA BANK	SPECIALISED PRIME CORPORATE BRANCH MUMBAI FORT, VARMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B80499726
5	10438804	19/07/2013	2,200,000,000.00	ANDHRA BANK	18, HOMI MODI STREET, NANAVATI MAHALAYA, MUMBAI,  MAHARASHTRA - 400001, INDIA	B80381841
6	10445662	12/07/2013	500,000,000.00	PUNJAB AND MAHARASHTRA CO-OPERATIVE BANK LIMITED.	OFFICE NO 4 & 5, 3RD FLOOR, DREAMS MALL, L B S MARG, BHANDUP (WEST), MUMBAI, MAHARASHTRA - 400078, INDIA	B83370783
7	10426052	19/04/2013	4,036,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, N. G. N. VAIDYA MARG, HORNIMAN CIRCLE, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B75242404
8	90231025	14/06/1999	510,000,000.00	ICICI LIMITED	ICICITOWER, BANDR KURLA, MUMBAI, MAHARASHTRA - 400051, INDIA	-
9	90232123	29/09/2006 *	240,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A06399224
10	90230982	29/09/2006 *	158,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A06400634
11	90230979	17/08/1999 *	200,000,000.00	INDUTRIAL DEVELOPMENT BANKOF INDIA	IDBI TOWER, CUFFE PRADE, MUMBAI, WEST BENGAL - 400005, INDIA	-
12	90240447	29/09/2006 *	580,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A42687277
13	90230974	03/03/1998	250,000,000.00	INDUSTRIAL DEVELOPMENT BNAK OF INDIA	IDBI TOWER, MUMBAI, MAHARASHTRA - 400005, INDIA	-
14	90230971	16/01/1998	950,300,000.00	INDUSTRIAL CRDIT INVESTMENT CORPORATION OF INDIA	163 BACKBAY RECLMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
15	90230958	29/10/1997	239,600,000.00	INDUSTRIAL CEVALOPMENT OF INDAI	IDBI TOWER CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
16	90230946	29/09/2006 *	100,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A42689901
17	90230933	29/09/2006 *	150,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A42686402
18	90230932	29/09/2006 *	300,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A06400451
19	90230901	27/09/2007 *	740,500,000.00	BANK OF INDIA	MUMBAI CORPORATE BANKING BRANCH, 70/80 M.G.ROAD,  MUMBAI, MAHARASHTRA - 400023, INDIA	A25173790
20	90230892	27/09/2007 *	150,000,000.00	BANK OF INDIA	MUMBAI CORPORATE BANKING BRANCH, 70/80 M.G.ROAD,  MUMBAI, MAHARASHTRA - 400023, INDIA	A25173121
21	90230891	16/04/1996	100,000,000.00	INDUATRIAL CREDIT INVESSTMENT CORPORTIAON OF INDIA	163, BACKBAY, BOMBAY, MAHARASHTRA - 400020, INDIA	-
22	90230888	29/09/2006 *	100,000,000.00	ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED	SHREEPATI ARCADE, AUGUST KRANTI MARG, NANA CHOWK  MUMBAI, MAHARASHTRA - 400036, INDIA	A55460604
23	90230873	16/01/1996	15,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA	163 BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
24	90230872	12/01/1996	250,000,000.00	THE INDUSRTILA CREDIT AND INVESTMENT CORPORATION OF INDIIA	163 BACKBAY RECLMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
25	90230854	27/11/1997 *	600,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, MUMBAI, MAHARASHTRA - 400005, INDIA	-
26	90231944	12/09/1995	75,000,000.00	THEINDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDAI	163 BACKBAY, MUMBAI, MAHARASHTRA - 400005, INDIA	-
27	90230828	23/12/1997 *	250,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT DEVALOPMENT BANK OF INDIA	IDBI TOWER, MUMBAI, MAHARASHTRA - 400005, INDIA	-
28	90230804	11/12/1995 *	60,000,000.00	INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA	163 BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
29	90231873	25/03/1994	200,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA	163 BACKBAY, MUMBAI, MAHARASHTRA - 400005, INDIA	-
30	90230775	29/09/2006 *	2,085,900,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	A06399109
31	90230766	21/10/1993	200,000,000.00	INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA	163 BACKBAY, MUMBAI, MAHARASHTRA - 400020, INDIA	-
32	90230763	30/09/1993	200,000,000.00	INDUSTRIAL DEVALOPMENT BANK OF INDIA	OIDBI TOWER, MUMBAI, MAHARASHTRA - 400005, INDIA	-
33	90230743	11/05/1993	90,000,000.00	THE INDUSTRIAL CREDIT AND INCESTMENT CORO	163 BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
34	90230698	28/02/1992	218,000,000.00	THE IUNDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA	163 BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
35	90230670	20/08/1991	1,500,000.00	THE SHIPPING CREDIT AND INVESTMENT COMPANY OF INDIA	254 B NARIMAN POINT, DR ANNLE BESANT ROAD, |MUMBAI, MAHARASHTRA - 400025, INDIA	-
36	90230652	08/08/1989 *	100,000,000.00	THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATINOF INDIA	163 BACKBAY, NARIMAN OINT, MUMBAI, MAHARASHTRA - 400020, INDIA	-
37	90230647	17/08/1992 *	122,400,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER CUFFEPARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	-
38	90231717	17/08/1992 *	200,000.00	THE INDUSTRIAL CERDIT AND INVESTMENT COPRPORATION OF  INDIA	163BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-
39	90230625	08/08/1989 *	15,000,000.00	THE INDUSTRIAL CREDIT AND INVESMENT CORPORTIN	163 BACKBAY, MUMBAI, MAHARASHTRA - 400020, INDIA	-
40	90230585	17/08/1992 *	20,000,000.00	INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA	163 BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA	-

* Date of charge modification

FIXED ASSETS:

• Land
• Building
• Plant Machinery
• Computer
• Electrical Installation
• Office Equipment
• Furniture and Fixtures
• Motor Vehicles
• Railway Siding

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. 61.91
UK Pound	1	Rs. 99.45
Euro	1	Rs. 83.92

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.