MIRA INFORM REPORT

Report Date :

19.10.2013

IDENTIFICATION DETAILS

Name :	BHUSHAN POWER AND STEEL LIMITED
Registered Office :	4^th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.02.1999
Com. Reg. No.:	55-108350
Capital Investment / Paid-up Capital :	Rs. 2013.337 Millions
CIN No.: [Company Identification No.]	U27100DL1999PLC108350
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Flat, Round and Value Added Products in Steel.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 250900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a fine track record. Financial position of the company appears to be sound. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions.

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

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	A- (Long Term Bank Facilities)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	October 08, 2013

Rating Agency Name	CARE
Rating	A1 (Short Term Bank Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	October 08, 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 DECLINED

MANAGEMENT NON-COOPERATIVE [91-11-30451000]

LOCATIONS

Registered/ Corporate Office :	4th Floor, Tolstoy House, 15-17, Tolstoy Marg, Connaught Place, New Delhi - 110001, India
Tel. No.:	91-11-30451000
Fax No.:	91-11-23712737/ 30451101
E-Mail :	rkguptacs@yahoo.co.in eximndro@eximbankindia.com delhi@bpsl.net
Website :	http://www.bhushanltd.com
Head Office :	F – Block 1^st Floor, International Trade Tower Nehru Place, New Delhi, India
Admin/ Network Office :	J.K. Millennium Center, 6th Floor, 46-D, Jawahar Lal Nehru Road, Kolkata - 700071, West Bengal, India
Tel. No.:	91-33-30512299/ 30512332/ 3052333
Fax No.:	91-33-30512235/ 30512297
E-Mail :	kolkata@bpsl.net
Manufacturing Units :	Plot No 03, Industrial Area, Phase-1, Chandigarh, India Plot No 71, Industrial Area, Phase-1, Chandigarh, India Plot No 83, Industrial Area, Phase-1, Chandigarh, India Plot No 141 – 142, Industrial Area, Phase-1, Chandigarh, India Village Haripur Khura, Ambala-Chandigarh Road, Derabassi, District Mohali, Punjab, India NH-2, Bangihatti, Mallickpara, Serampore, Hooghly, Kolkata, West Bengal, India Village Thelkoloi and Dhubenchapper Tehsil Rengali District Sambalpur, Orissa, India
Marketing Offices :	Located at: North Amritsar Amb Baddi Bhiwadi Chandigarh Damtal Delhi Derabassi Faridabad Indore Jammu Jalandhar Jaipur Kanpur Ludhiana Panchkula Rudrapur Mandi Gobindgarh Parwanoo Una Kullu Manesar Ghaziabad (UP) South Bangalore Hosur Chennai Cochin Secunderabad Vijayawada Hyderabad East Kolkata Guwahati (Assam) Patna Agartala (Tripura West) Gulabbagh (Bihar) Bhubaneshwar Sambalpur Siliguri Jamshedpur (Jharkhand) Raipur (Chhattisgarh) West Nagpur Mumbai Nasik Pune Aurangabad Ahmedabad Rajkot
Network Offices :	Located at: CHANDIGARH OFFICE Plot No. 3, Industrial Area, Phase – I, Chandigarh - 160002, India Phone : 91-172-3911702/ 3911703 Fax : 91-172-3911704 E-mail : chandigarh@bpsl.net ORISSA OFFICE Village Thelkoloi, P.O. Lapanga, Tehsil - Rengoli, District Sambalpur - 768232 Orissa, India Phone: 91-663-2535000/ 2562026-32 Fax: 91-663-2562007/ 2562011 E-mail : orissa@bpsl.net DERABASSI OFFICE Chandigarh Ambala Road, Derabassi - 140507, District Patiala, Punjab, India Phone: 91-1762-307900/ 307901 Fax: 91-1762-307902 E-mail : bhushandrb@bpsl.ne

DIRECTORS

AS ON 17.09.2012

Name :

Mr. Sanjay Singal

Designation :

Managing director

Address :

61, Sector 5, Chandigarh, India

Date of Birth/Age :

19.06.1960

Qualification :

Graduate

Experience :

32 Years

Date of Appointment :

30.06.2013

DIN No.:

00006579

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Managing director	30/06/2013	22/02/1999	-	Active	NO
2	U74920HR1992PTC034375	ESSENN INVESTMENTS PRIVATE LIMITED	Director	01/11/2001	01/11/2001	-	Active	NO
3	U27100MH1991PTC060692	PITTIE STRIPES PRIVATE LIMITED	Director	21/10/2002	21/10/2002	17/11/2011	Active	NO
4	U65921DL1965PTC004523	ATMA RAM HOUSE INVESTMENT PRIVATE LIMITED	Director	15/09/2008	09/03/2008	-	Active	NO
5	U10300DL2008PTC176675	ROHNE COAL COMPANY PRIVATE LIMITED	Director	11/04/2008	11/04/2008	-	Active	NO
6	U27203CH2008PLC031346	BHUSHAN ALUMINIUM AND POWER LIMITED	Director	22/09/2009	29/08/2008	-	Active	NO
7	U74899DL1983PTC015894	SKAP ELECTRONICS PRIVATE LIMITED	Director	17/09/2011	18/01/2011	-	Active	NO
8	L02710CT1989PLC010052	NOVA IRON AND STEEL LIMITED	Director	11/10/2011	08/07/2011	-	Active	NO
9	U70101OR2012PTC015609	AVANTIKA REAL ESTATE PRIVATE LIMITED	Director	05/07/2012	05/07/2012	-	Active	NO

Name :

Mrs. Aarti Singal

Designation :

Vice Chairperson and Whole Time Director (Admin)

Address :

61, Sector 5, Chandigarh, India

Date of Birth/Age :

08.03.1961

Date of Appointment :

20.09.2010

DIN No.:

00007698

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U67120DL1992PTC102462	BIC INVESTMENTS PRIVATE LIMITED (CHANDIGARH TO DELHI)	Director	20/11/2003	20/11/2003	-	Active	NO
2	U00000CH2004PLC026792	AARTI IRON AND POWER LIMITED	Director	06/02/2004	06/02/2004	-	Active	NO
3	U27100CH2003PLC026593	MARSH STEEL TRADING LIMITED	Director	22/03/2004	22/03/2004	-	Active	NO
4	U27100CH2003PLC026592	VISION STEEL LIMITED	Director	22/03/2004	22/03/2004	-	Active	NO
5	U27100CH2003PLC026591	DIYAJYOTI STEEL LIMITED	Director	22/03/2004	22/03/2004	-	Active	NO
6	U27100CH2005PLC027972	TITANIC STEEL INDUSTRIES LIMITED	Director	15/02/2005	15/02/2005	-	Active	NO
7	U67190CH2005PLC027973	OLYMPIAN FINVEST LIMITED	Director	15/02/2005	15/02/2005	-	Active	NO
8	U27100CH2005PLC028119	VINTAGE STEEL LIMITED	Director	17/03/2005	17/03/2005	05/04/2010	Active	NO
9	U27100CH2005PTC028120	AROMATIC STEEL PRIVATE LIMITED	Director	17/03/2005	17/03/2005	-	Active	NO
10	U65921DL1965PTC004523	ATMA RAM HOUSE INVESTMENT PRIVATE LIMITED	Director	15/09/2008	09/03/2008	-	Active	NO
11	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Director	20/09/2010	30/03/2010	-	Active	NO
12	U74899DL1983PTC015894	SKAP ELECTRONICS PRIVATE LIMITED	Director	17/09/2011	18/01/2011	-	Active	NO
13	U70101OR2012PTC015609	AVANTIKA REAL ESTATE PRIVATE LIMITED	Director	05/07/2012	05/07/2012	-	Active	NO

Name :

Mr. Ravi Prakash Goyal

Designation :

Whole Time Director (Commercial)

Address :

House No. 157, Sector 16, Panchkula – 134112, Haryana, India

Date of Birth/Age :

09.09.1951

Date of Appointment :

01.03.2011

DIN No.:

00006595

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L65910CH1984PLC021285	MARBLE FINVEST LIMITED	Director	20/06/1990	20/06/1990	-	Active	NO
2	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Whole-time director	01/03/2011	01/03/2001	-	Active	NO
3	U27100MH1991PTC060692	PITTIE STRIPES PRIVATE LIMITED	Director	21/10/2002	21/10/2002	17/11/2011	Active	NO
4	U65921DL1965PTC004523	ATMA RAM HOUSE INVESTMENT PRIVATE LIMITED	Director	15/09/2008	09/03/2008	-	Active	NO
5	U10300DL2008PTC176675	ROHNE COAL COMPANY PRIVATE LIMITED	Director	11/04/2008	11/04/2008	-	Active	NO
6	U27101DL2008PLC182617	PRIYANKA IRON AND ENERGY LIMITED	Director	19/09/2009	29/08/2008	-	Active	NO
7	U27203CH2008PLC031346	BHUSHAN ALUMINIUM AND POWER LIMITED	Director	22/09/2009	29/08/2008	-	Active	NO
8	L02710CT1989PLC010052	NOVA IRON AND STEEL LIMITED	Director	11/10/2011	08/07/2011	-	Active	NO
9	U70101OR2012PTC015609	AVANTIKA REAL ESTATE PRIVATE LIMITED	Director	05/07/2012	05/07/2012	-	Active	NO

Name :

Mr. Hardev Chand Verma

Designation :

Whole Time Director (Marketing)

Address :

House No. 1258, Near old Post Office, Mani Majra, Chandigarh – 160002, India

Date of Birth/Age :

15.11.1952

Date of Appointment :

01.03.2011

DIN No.:

00007681

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1995PTC069880	TRACK CASTING (INDIA) PRIVATE LIMITED	Director	15/09/1995	15/09/1995	01/09/2008	Active	NO
2	U74899DL1995PTC074322	CLASSIC TRANSPORTATION PRIVATE LIMITED	Director	04/12/1995	04/12/1995	17/11/2011	Active	NO
3	U74899DL1992PTC102460	ADHUNIK INVESTMENTS PRIVATE LIMITED	Director	26/03/1996	26/03/1996	29/02/2012	Active	NO
4	U67120DL1992PTC102461	ASL INVESTMENTS PRIVATE LIMITED	Director	26/03/1996	26/03/1996	27/02/2012	Active	NO
5	U74899DL1994PTC060843	DECOR INVESTMENT AND FINANCE PRIVATE LIMITED	Director	28/06/1999	28/06/1999	10/05/2012	Active	NO
6	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Whole-time director	01/03/2011	01/03/2001	-	Active	NO
7	L02710CT1989PLC010052	NOVA IRON AND STEEL LIMITED	Additional director	05/08/2013	05/08/2013	-	Active	NO

Name :

Mr. Ram Naresh Yadav

Designation :

Whole Time Director (Technical)

Address :

Flat No. 35, Vasant Apartment, Mayur Vihar, Phase – 1, New Delhi, India

Date of Birth/Age :

16.07.1959

Date of Appointment :

14.06.2003

DIN No.:

00006697

Name :

Mr. Ram Dev Batra

Designation :

Director

Address :

4148, Pocket 4, Sector D, Vasant Kunj, New Delhi -110001, India

Date of Birth/Age :

16.05.1936

Date of Appointment :

01.03.2001

DIN No.:

00007769

Name :

Mr. Dinesh Kumar Behal

Designation :

Director

Address :

House No. 3235, Phase – II, Dugri Road, Urban Estate, Ludhiana, Punjab, India

Date of Birth/Age :

19.02.1958

Date of Appointment :

19.06.2006

DIN No.:

00011735

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L51909DL1981PLC023796	CREATIVE INTRA LIMITED	Director	01/01/1991	01/01/1991	18/08/2011	Active	NO
2	U65990DL1984PTC152267	LINTAS INVESTMENT AND TRADING LIMITED	Director	28/08/2003	28/08/2003	-	Amalgamated	NO
3	U67120DL1984PLC152148	BEVERLY INVESTMENT COMPANY LIMITED	Director	12/04/2004	12/04/2004	24/03/2007	Amalgamated	NO
4	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Director	19/06/2006	28/02/2006	-	Active	NO
5	U51900DL1994PLC152147	ISABELLE TRADERS LIMITED	Additional director	24/02/2011	24/02/2011	-	Active	NO
6	U17290PB2011PTC034791	AGGARWAL SPINTEX PRIVATE LIMITED	Director	08/03/2011	08/03/2011	-	Active	NO

Name :

Mr. Jimmy Lachmandas Mahtani

Designation :

Director

Address :

APT BLKI, Chatsworth Road, #22-21, Singapore

Date of Birth/Age :

27.10.1976

Date of Appointment :

23.05.2012

DIN No.:

00996110

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Nominee director	23/05/2012	22/11/2006	-	Active	NO
2	U17111MH1982PLC118017	PRATIBHA SYNTEX LIMITED	Director	30/05/2007	30/05/2007	15/12/2010	Active	NO
3	U74999MH2004PTC175698	JSM CORPORATION PRIVATE LIMITED	Director	29/09/2007	12/06/2007	-	Active	NO
4	L15141MP1985PLC003171	K.S.OILS LIMITED	Director	20/10/2007	22/08/2007	20/05/2011	Active	NO
5	U74140MH2004PTC175689	H R CAFE INDIA PRIVATE LIMITED	Director	29/09/2007	24/08/2007	-	Amalgamated	NO
6	U67120AP1995PLC019877	KARVY STOCK BROKING LIMITED	Director	29/09/2008	23/11/2007	29/06/2010	Active	NO
7	U99999MH1995PLC087498	SHAREKHAN LIMITED	Director	24/09/2008	20/02/2008	-	Active	NO
8	U45200AP1999PTC031431	RITHWIK PROJECTS PRIVATE LIMITED	Director	26/03/2008	26/03/2008	23/04/2012	Active	NO
9	U85110KA1996PTC019807	RSP DESIGN CONSULTANTS (INDIA) PRIVATE LIMITED	Nominee director	04/08/2008	04/08/2008	-	Active	NO
10	U45203OR1995PLC003982	COASTAL PROJECTS LIMITED	Nominee director	17/09/2010	05/01/2010	01/10/2013	Active	NO
11	U80301DL2010FTC207423	GLOBAL INDIAN SCHOOL EDUCATION SERVICES PRIVATE LIMITED	Nominee director	29/09/2012	25/11/2011	-	Active	NO
12	U26940MH1999PTC118229	LAFARGE INDIA PRIVATE LIMITED.	Director	05/09/2013	15/07/2013	-	Active	NO
13	L72900MH1992PLC069662	HEXAWARE TECHNOLOGIES LIMITED	Additional director	11/10/2013	11/10/2013	-	Active	NO

Name :

Mr. Anil S. Supanekar

Designation :

Director

Address :

694/2, Swami Kripa Apartments, Market Yard Road, Pune, Maharashtra, India

Date of Birth/Age :

24.10.1940

Date of Appointment :

20.07.2007

DIN No.:

00023254

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65993DL1988PLC030284	IFCI VENTURE CAPITAL FUNDS LIMITED	Director	05/07/2003	05/07/2003	30/09/2011	Active	NO
2	U27100DL1999PLC108350	BHUSHAN POWER AND STEEL LIMITED	Director	20/07/2007	29/09/2006	-	Active	NO

Name :

Mr. Aniket Singal

Designation :

Director w.e.f. 27.06.2012

Name :

Mr. Melwyn Rego

Designation :

Nominee Director - IDBI

Name :

Mr. R. P. Goyal

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Ravinder Kumar Gupta
Designation :	Secretary
Address :	2147/3, Sector 45 C, Chandigarh – 160002, Punjab, India
Date of Birth/Age :	31.05.1958
Date of Appointment :	21.09.2000
PAN No.:	ADOPG2712Q
Name :	Mr. R K Rastogi
Designation :	Vice President Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 17.09.2012

NOT AVAILABLE

AS ON 17.09.2012

Equity Share Breakup	Percentage of Holding
Category
Individuals – Promoters	11.65
Body Corporate - Promoters	82.82
FII	5.53
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Flat, Round and Value Added Products in Steel.

Products :

v HR Coil

v Steel Billets

v Alloy Steel Rounds

v Tor Steel

v Wire Rods

v Pig Iron

v Sponge Iron

v Power

v CR Coils

v Narrow CR Coils

v CR Sheets

v Precision Tubes (ERW and CEW)

v Cable Tapes

v Black Pipe

v GI Pipe

v GP Coils / Sheets

v GP Corrugated Sheets

Product Description	ITC Code
Flat Cold Rolled products of Iron or Non Alloy Steels of a width of less than 600 mm not further worked.	721119.00
ERW Precision Tubes	730690.01
Corrugated Coated with zinc cold rolled products of Iron or Non-Alloy Steel of width 600 mm or more.	721041.00
Rolled Products	721491.09
Flat Rolled products of Iron or Non – Alloy Steels, of a width of 600 mm or more, Hot Rolled, Not Clad, plated or coated.	720810.00

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

v Axis Bank Limited

v Allahabad Bank

v Andhra Bank

v Bank of Baroda

v Bank of India

v Bank of Maharashtra Bayem-LB, Germany

v Canara Bank

v Central Bank of India Corporation Bank

v Dena Bank

v Export Import Bank of India

v ICICI Bank

v IDBI Limited.

v Indian Bank

v Indian Overseas Bank

v Indusind Bank Limited

v IKB Deutsche Industriebank, Germany

v Karur Vysya Bank

v KFW Bank, Germany

v Life Insurance Corporation of India

v Oriental Bank of Commerce

v Punjab National Bank

v Punjab and Sind Bank

v State Bank of Bikaner and Jaipur

v State Bank of Hyderabad

v State Bank of India

v State Bank of Mysore

v State Bank of Patiala

v State Bank of Travancore

v Syndicate Bank

v The Jammu and Kashmir Bank Limited

v UCO Bank

v United Bank of India

v Union Bank of India

v Unicredit, Germany

v Vijaya Bank

Facilities :

Secured Loans

31.03.2013

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

Term Loans From Banks

Rupee Loan

77366.605

Foreign Currency Loan

54574.104

Deferred Credits from Banks

18.486

SHORT TERM BORROWINGS

Working Capital Loans from Banks

Rupee Loan

13536.041

Foreign Currency Loan

6021.563

Total

NA

151516.799

Notes:

LONG TERM BORROWINGS

1 Security Detail of Long Term Borrowings (Including Current Maturities)

(a) Rs.121530.832 Millions (Previous year Rs.88330.207 Millions), secured by first charge on all movable property of the Company including plant and machinery, tools, spares, accessories, (excluding assets exclusively charged to IKB Deutsche Industrie Bank, Germany, Unicredit Bank, Austria and Bayern LB Bank, Germany) created and/or to be created in favour of Company's bankers for working capital.

These are further secured by first charge on Immovable properties situated at Plot No. 22, 71, Industrial Area, Chandigarh, Derabassi on Ambala-Chandigarh Road, 186, G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata), village Dhubenchhapar, Khadiapali, Thelkoloi, Jangla, Brahmmipali, Derba, Katarbaga, Tumbekela and Dharropani, District Sambalpur, Odisha, two city offices at Chowringhee Road, Kolkata and residential premises situated at Alipore, Kolkata (both present and future), ranking pari-passu interse between term lenders and further secured by personal guarantee of Chairman cum Managing Director and a Whole Time Director.

Rs.35455.281 Millions (Previous year Rs. 28324.402 Millions) is further secured by first charge in favour of security agent acting for itself and other lenders in respect of Company's immovable property situated at D-818, New Friends Colony, New Delhi.

(b) Rs.17670.580 Millions (Previous year Rs. 14867.521 Millions) is secured by sub-servient charge on entire current and fixed assets of the Company and further secured by personal guarantee of Chairman cum Managing Director and a Whole Time Director.

(c) Rs. 1777.162 Millions (Previous year Rs. 2302.353 Millions) is secured by exclusive first charge in favour of security agents, acting as agent for equipment suppliers, on the specific equipment supplied by specific supplier, specific equipments/ movable assets (of value approximately Rs.1000.000 Millions) erected/to be erected/ constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located including CSP plant, CSP Caster shed, CSP Tunnel Furnace shed, CSP Mill shed and Hot Rolled Coils Handling and Storage and further secured by immovable property situated at Flat No. 215-C, Pocket C, IInd Floor, Sidharth Extention, New Delhi.

(d) Rs. 247.631 Millions (Previous year Rs. 217.550 Millions) is secured by exclusive first charge in favour of security agents, acting as agent for equipment suppliers, on the specific equipment supplied by specific supplier, specific equipments/ movable assets erected/to be erected/ constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located includes Hicon/H2 Bell Annealer.

(e) Rs. 1169.450 Millions (Previous year Rs. Nil) is secured by exclusive first charge in favour of security agents, acting as agent for equipment suppliers, on the specific equipment supplied by specific supplier, specific equipments/ movable assets (of value approximately Rs. 1943.500 Millions) erected/to be erected/ constructed/ installed at Rengali, Sambalpur, Odisha, wherein the equipments are located/ shall be located including Pellet Plant, Centreless Grinding Line, Combined Drawling Line and Pealing Line.

(f) Rs. 38.057 Millions (Previous year Rs. 40.804 Millions) including current maturities of Rs. 19.571 Millions (Previous year Rs. 18.486 Millions) is secured by hypothecation of specific assets under deferred credit payment terms and personal guarantee of Chairman cum Managing Director .

2 Terms of repayment of Term Loans

(Rs. In Millions)

Particular	2012-13	2013-14	2014-15 and Beyond
Loans	10454.946	12304.947	105965.151

Terms of repayment of Term Loans

(a) Domestic Loan of Rs. 2343.209 Millions is outstanding as on 31.03.2012. Interest @ 13.50% is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2012 amounts to Rs. 3184.759 Millions on which Interest is payable @ LIBOR + 875 basis points. Amount due is repayable in quarterly installments as mentioned.

(b) Domestic Loan of Rs. 7104.301 Millions is outstanding as on 31.03.2012. Interest @ 13.75% is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2012 amounts to Rs. 4389.417 Millions on which Interest is payable @ LIBOR + (600 to 800) basis points. Amount due is repayable in quarterly installments as mentioned.

(c) Domestic Loan of Rs. 24442.451 Millions is outstanding as on 31.03.2012. Interest @ 13.50% is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2012 amounts to Rs. 5484.862 Millions on which Interest is payable @ LIBOR + (600 to 800) basis points. Amount due is repayable in quarterly installments as mentioned.

(d) Domestic Loan of Rs. 10914.587 Millions is outstanding as on 31.03.2012. Interest @ 12% is payable on said loan. Domestic loan converted into Foreign Currency (in USD) outstanding as on 31.03.2012 amount to Rs. 511.600 Millions on which Interest is payable @ LIBOR + 625 basis points. Amount due is repayable in quarterly installments as mentioned.

(e) Foreign Currency Loan of Rs.32368.028 Millions is outstanding as on 31.03.2012. Out of this RS. 66,601.00 Millions is repayable in half yearly installments carrying interest @ 3/6 Months LIBOR/URIBOR + (70 to 200) basis points, Rs. 25707.928 Millions is repayable in yearly installments carrying interest @ 3/6 Months LIBOR + (220 to 475) basis points. Amount and period of repayment is as mentioned.

(f) Domestic loan of Rs. 27566.543 Millions is outstanding as on 31.03.2012. Interest @ 11.85% to 13.00% is payable on said loan. Domestic loan converted into foreign currency (in USD) outstanding as on 31.03.2012 amounts to Rs. 10415.287 Millions on which Interest is payable @ LIBOR + (500 to 850) basis points. Amount and period of repayment is as mentioned.

3 Terms of conversion of Term Loan into Equity Shares

(a) Domestic Loan of Rs. 6500.000 Millions is outstanding as on 31st March, 2012 Interest @13% is payable on said loan. The said loan to be utilised for Phase-V of the Odisha project with option to convert into equity shares in case the Company comes out with IPO within 5 years from the date of first disbursement at a mutually pre-agreed discount to IPO price.

(b) The Company also has term loan aggregating to Rs.7170.611 Millions (Previous year Rs.7750.000 Millions from Bank of India of Rs.2400.000 Millions (Previous year Rs. 3000.000 Millions) at 12.25% p.a., Canara Bank of RS. 1500.000 Millions (Previous year Rs. 1500.000 Millions) @12.50% p.a., United Bank of India of Rs. 750.000 Millions (Previous year Rs. 750.000 Millions) p.a., Vijaya Bank of Rs. 1000.000 Millions (Previous year Rs. 1000.000 Millions) @ base rate + 4.25% p.a.(Floating) and Andhra Bank of Rs. 1500.000 Millions (Previous year Rs. 1500.000 Millions) @ base rate + 3% p.a. with monthly rest to be utilised for Phase-IV of the Odisha project with option to convert into equity shares in case the company comes out with IPO within 3 years from the date of first disbursement at lower price of band in case of book building or at the issue price in case of fixed price issue.

Out of the 'B' above, 50% loan of United Bank of India, 100% loan of Vijaya Bank and Canara Bank is converted into foreign currency loan during the year and the corresponding restated converted loans as on 31.03.2012 in books are Rs.359.169 Millions, Rs.1006.097 Millions and Rs.1530.522 Millions respectively. Out of the above amount of domestic loan outstanding as on 31.03.2012 is Rs.4274.824 Millions.

SHORT TERM BORROWINGS

4 Security Detail of Secured Short Term Borrowings

Rs.19557.604 Millions (Previous year Rs.13036.142 Millions) secured by first charge on current assets (both present and future) by way of hypothecation of stocks, book-debts, investments and other current assets and all movable property (excepts assets exclusively charged to IKB Deutsche Industrie Bank, Germany, Unicredit Bank, Austria and Bayern LB Bank, Germany) and further secured by second charge created and/or to be created on all movable assets forming part of fixed/block of assets (both present and future) and on immovable properties, building, structure and all plant and machinery fastened to earth at Plot No. 22, 71, Industrial Area, Chandigarh, Derabassi on Ambala-Chandigarh Road, 186, G.T. Road, Ludhiana, Bangihatti Serampore (Near Kolkata),village Dhubenchhapar, Khadiapali, Thelkoloi, Jangla, Brahmmipali, Derba, Katarbaga, Tumbekela and Dharropani, District Sambalpur Odisha, and two city offices situated at Chowringhee Road, Kolkata and residential premises situated at Alipore, Kolkata. The security ranks pari-passu inter-se between consortium member banks. Loans are further secured by personal guarantee of Chairman cum Managing Director and a Whole Time Director.

5 Security Detail of Unsecured Short Term Borrowings

Rs.16937.379 Millions (Previous year Rs.1523.204 Millions) is secured by personal guarantee of Chairman cum Managing Director.

Banking Relations :	--
Auditors :
Name :	Mehra Goel and Company Chartered Accountants
Address :	505, Chiranjiv Tower, Nehru Place, New Delhi – 110019, India
E-Mail :	mg@mehragoelco.com
Website :	http://www.mehragoelco.com
Cost Auditors :
Name :	J. K. Kabra and Company Cost Accountants
Address :	New Delhi, India
Joint Venture [As on 31.03.2012] :	v Rohne Coal Company Private Limited
Associates [As on 31.03.2012] :	v Nova Iron and Steel Limited (from 11.06.2011) v Ambey Steel and Power Private Limited (from 17.06.2011)
Enterprise over which key managerial personnel have significant influence [As on 31.03.2012] :	v Atma Ram House Investment Private Limited
Subsidiaries Companies :	v Aarti Minerals (Australia) Pty Limited v Aarti Resources Mozambique Limitada v Skap Electronics Private Limited

CAPITAL STRUCTURE

AFTER 17.09.2012

Authorised Capital : Rs.3500.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.2109.116 Millions

AS ON 31.03.2013

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 2013.337 Millions

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	2013.337	1937.150	1360.517
(b) Reserves & Surplus	60722.449	52652.758	24831.769
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	11032.200
Total Shareholders’ Funds (1) + (2)	62735.786	54589.908	37224.486
(3) Non-Current Liabilities
(a) long-term borrowings	179971.013	132105.195	97408.427
(b) Deferred tax liabilities (Net)	11008.309	7958.309	5158.309
(c) Other long term liabilities	20661.645	16089.221	7393.256
(d) long-term provisions	283.478	103.415	85.027
Total Non-current Liabilities (3)	211924.445	156256.140	110045.019
(4) Current Liabilities
(a) Short term borrowings	48603.314	36494.983	28259.347
(b) Trade payables	9408.180	9491.993	10269.441
(c) Other current liabilities	22622.728	13483.084	10664.182
(d) Short-term provisions	271.983	299.866	297.007
Total Current Liabilities (4)	80906.205	59769.926	49489.977
TOTAL	355566.436	270615.974	196759.482
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	137422.703	125469.041	78334.536
(ii) Intangible Assets	11.462	7.214	7.894
(iii) Capital work-in-progress	141939.816	84419.515	66285.003
(iv) Intangible assets under development	149.344	0.000	0.000
(b) Non-current Investments	1220.696	1013.858	151.409
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11316.363	6367.803	6188.994
(e) Other Non-current assets	337.930	65.233	37.713
Total Non-Current Assets	292398.314	217342.664	151005.549
(2) Current assets
(a) Current investments	212.206	453.787	732.620
(b) Inventories	19927.145	17648.281	23462.840
(c) Trade receivables	17184.061	11090.131	8590.260
(d) Cash and cash equivalents	7336.532	8604.496	4510.672
(e) Short-term loans and advances	18508.178	15476.615	8457.541
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	63168.122	53273.310	45753.933
TOTAL	355566.436	270615.974	196759.482

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations		67510.904	46784.390
		Other Income		29.236	330.041
		TOTAL (A)	NA	67540.140	47114.431
Less	EXPENSES
		Cost of Raw Materials Consumed		29374.474	28280.309
		Purchases of Traded Stock		856.140	2551.930
		(Increase)/Decrease in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade		4016.266	(8248.088)
		Employee Benefits Expense		2967.019	2592.053
		Other Expenses		9765.342	7773.493
		TOTAL (B)	NA	46979.241	32949.697
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			20560.899	14164.734
Less	INTEREST & FINANCIAL EXPENSES (D)			7360.448	4424.106
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16234.700	13200.451	9740.628
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7465.500	5059.775	3729.227
	PROFIT BEFORE TAX (E-F) (G)		8769.200	8140.676	6011.401
Less	TAX (H)		3050.000	2800.000	1632.840
	PROFIT AFTER TAX (G-H) (I)		5719.200	5340.676	4378.561
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11210.386	7878.110	5507.449
Less	APPROPRIATIONS
		Transferred to General Reserve	2076.400	2000.000	2000.000
		Transferred to Debenture Redemption Reserve	0.000	0.000	0.000
		Proposed Dividend	9.700	7.200	6.800
		Proposed Dividend on Cumulative compulsorily convertible preference Shares	0.010	0.000	0.000
		Dividend Tax	1.700	1.200	1.100
	BALANCE CARRIED TO THE B/S		14841.776	11210.386	7878.110
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		13849.910	11496.834
		Interest		8.472	23.213
	TOTAL EARNINGS		NA	13858.382	11520.047
	IMPORTS
		Raw Materials		7486.365	10925.479
		Stores & Spares		334.782	486.667
		Capital Goods		6195.772	8159.115
	TOTAL IMPORTS		NA	14016.919	19571.261
	Earnings Per Share (Rs.)
	- Basic		NA	37.00	32.18
	- Diluted		NA	32.26	26.17

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	7.91	9.29
Net Profit Margin (PBT/Sales)	(%)	NA	12.06	12.85
Return on Total Assets (PBT/Total Assets}	(%)	4.13	4.40	4.61
Return on Investment (ROI) (PBT/Networth)		0.14	0.15	0.16
Debt Equity Ratio (Total Debt/Networth)		3.64	3.09	3.38
Current Ratio (Current Asset/Current Liability)		0.78	0.89	0.92

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	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 LOANS

Unsecured Loans	31.03.2013	31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS
From Corporate Bodies		0.000
SHORT TERM BORROWINGS
Commercial Paper		500.000
Rupee Loan		13747.234
Foreign Currency Loans		975.971
Total	NA	15223.205

HIGHLIGHTS OF INDUSTRY REVIEW

In the year 2012 the world steel production reached 1,527 million tonnes and showed a growth of 6.8% over 2012. China remained the world's largest crude steel producer in 2011 with total production of 695.5 million tonnes followed by Japan (107.6 million tonnes) and USA (86.2 million tonnes). India occupied the 4th position with total production of 72.2 million tonnes for the second consecutive year.

World Steel Association has projected that apparent steel use will increase by 5.4% in 2012. Such growth will be largely driven by China and India with China apparent steel use in 2012 is expected to grow by 6%. For India, growth in apparent steel use is expected to go up by 7.9% in 2012. Per capita consumption of steel at world level is estimated at 206 kg, 427kg for China and 35kg for India. Going forward much of global steel demand, growth is expected to be driven by the developing economies of China and India and steel demand is expected to be robust for the period 2010-14.

Chinese Government continue to spend in infrastructure projects to develop rural western China. It is expected to drive future growth, while policies like raising minimum purchase price and subsidies to rural household on consumer durables are expected to boost the share of rural consumption in total domestic demand.

Consumption growth in flat steel products was higher as compared to long steel products on account of growth in the Indian automobile industry. Flat steel products consumption rose by 9.7% (y-o-y) while that for long steel products increased by 6.7% thereafter.

The liberalisation of Industrial Policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry. While the existing units are being modernized / expanded, a large no. of units have also come up in the different parts of the country based on modern, cost effective, state-of-the art technologies. In the last few years, rapid and stable growth of the demand side has also promoted domestic entrepreneurs to set up fresh Green field projects in different states of the country. The country is expected to become second largest producer of crude steel in the world by 2015-16, provided all requirements for creation of fresh capacity are adequately met.

It is expected that Indian crude steel Industry will grow at CAGR of around 10% during 2010-2013. Moreover, with the Government proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile and power will drive the Steel Industry in future.

The National Steel Policy has set up the target of 110 million tonnes of steel production by 2018 whereas total steel production in 2012 was 72.2 million tonnes. Major steel producers in India are planning to expand their capacities in tune with the National Steel Policy.

HIGHLIGHTS OF OPERATIONAL PERFORMANCE

The Company continues to manage effectively supply chain management, product mix enrichment, improvement in quality and productivity. The performance and the Company achieved turnover of Rs.72816.500 Millions as compared to Rs.50203.500 Millions last year recording growth of 45.04%. Net Profit after taxes increased by 21.97% to Rs. 5340.700 Millions. Cash Profit increased by 35.70% to Rs. 13200.500 Millions. Better market demand, higher exports and better realization during the year has resulted into increased financial performance.

EXPORTS

The Company is making consistent efforts to mark presence in international market. Growing response, quality consciousness and greater market acceptability in global market has resulted into achieving the growth in the international market. Exports turnover of the Company has increased by 23.88% over last year to Rs. 15203.500 Millions by exporting its products to various countries i.e. to Austria, Bhutan, Beinhoa City, Belgium, Congo, Cotondu, Dubai, England, France, Freetown, Gambia, Kuwait, Lebanon, Liberia, Luanda, Malaysia, Monrovia, Nepal, Nigeria, Oman, Singapore, Saudi Arabia, Sudan, Sri Lanka, South Africa, Senegal, Sierra Leone, Switzerland, Tanzania, Tamatave, UA.E and Vietnam. Their products confirm international quality standards coupled with efficacy of sternest delivery tests applied worldwide which are key factors of higher realization in international market.

MINES

COKING COAL

The price of coking coal in global market has fallen compared with the last year prices. However, the steel producers without captive mines are likely to see margins contraction. The volatile exchange fluctuation on higher side has further squeezed the margins. Demand of coking coal is expected to be higher while supplies are most likely going to be less. Indian steelmakers will continue to import coking coal. It is expected that import will increase to 60 million tonnes by 2017 and 90 million tonnes by 2020 as to meet increasing capacities each year.

THERMAL COAL

Global coal prices of thermal coal have fallen down to a two year low of $87 per tonnes in June 2012. It was trading at around $ 142 per tonnes at the beginning of the year 2012. However, the slash in prices are offset by rupee depreciation. Sudden supply of coal is outpacing the demand. High cost of mining in countries like US may lead to supply cut. Coal is a critical input for industries like steel, power and cement.

Mining plan for coal mines at Jamkhani and Bijhan has been approved by Government of India and the company expects mining lease will be executed at the earliest. Necessary approvals are in place. Company's coal mines at Jamkhani in the State of Odisha are expected to be operational shortly. Till that time, Company has to depend on market supply and supply from Coal India Limited and other available sources. The Company has been allotted coal block in Patal East block in the State of Jharkhand for its proposed Integrated Steel and Power Project in the State of Jharkhand.

ROHNE COAL BLOCK- A JOINT VENTURE

Company holds 24.09% shareholding in Joint Venture with JSW Steel Limited and Jai Balaji Steel Limited under the name Rohne Coal Company Private Limited. Rohne Coal Block in the State of Jharkhand has been allotted. The said joint venture has acquired 204.47 acres land. Total allocated land is 3076.39 Acres. Mining closure Plan has been approved by the Government of India. Government of India has accorded prior approval under MMDRA for mining lease over coal bearing area of 778 Hectare and prospecting Licence over an unexplored area of 420 Hectare. Public hearing has been completed.

IRON ORE

Iron ore prices are steadily increasing in recent year. Steel production in China has been at the core of that country's growth story and the price of iron ore has been a major component driving steel costs across the rest of the industrial landscape.

Hon'ble Supreme Court of India vide its order dated 14th March 2012 has directed State of Odisha to recommend to Government of India the allotment of iron ore mines in the State of Odisha to the Company. The Company has been allotted iron ore block in Chatuburu block in the State of Jharkhand and taking necessary steps for execution of mining lease.

POWER

Present installed capacity in power sector in India is about X 1.99 lacs MW, out of which thermal capacity constitute 65.84% (Coal based 56.04%, Gas based 9.19% and oil based 0.60%), 19.50% capacity comprising from hydro, nuclear based power capacity is 2.39% and renewal energy sources constitute about 12.25% of the total installed power capacity.

Number of power plants will increase in the years to come with various State Government inviting private players to invest in the power sector. It is estimated that Indian Power Sector will add around 45000 MW by 2013-14. Renewable energy creates huge opportunities for power generation, however, thermal based power sector will remain the dominant source for energy in India. Investments in power sector are expected to be high in the next five years. The total demand for electricity in India is still more than its generation and there is huge gap of demand and supply.

Supply of indigenous coal to power sector may not be adequate. Government has intervened for supply of coal to private power players for more generation of power. Company has successfully commissioned 506 MW captive power plants.

PROJECTS - ODISHA EXPANSION

The Company has successfully commissioned the facilities envisaged in various Phases i.e. I, II, III and IV. All phases were completed within time schedule and cost estimates.

PHASE –V

To achieve total integration of primary and secondary products, the Company is implementing the facilities under Phase V consisting facilities of Iron Ore Beneficiation Plant of 6.50 MTPA (feed) and Pellet Plant of 3.85 MTPA capacity. With the completion, the entire value chain of products fully integrated will be at one place to take further advantage of the present market scenario. The commissioning of the facilities under Phase V shall facilitate low grade iron ore to be upgraded in the Beneficiation Plant by increasing the iron contents of iron ore fines near to 63.1 %. The upgraded fines, thereafter, will be processed in the Pellet Plant and converted into Pellets and subsequently, these pellets will be used in DRI kilns and Blast Furnace as a substitute to high grade lump ore to reduce the cost of production. Low grade iron ore is available in abundance in India at low cost.

INTEGRATED STEEL AND POWER PLANT – JHARKHAND

The Company has initiated steps for setting up of Integrated Steel and Power Plant of steel making facilities of 3 million tonnes and 900 MW captive power plant at an envisaged estimated capital outlay of X10,500 Millions in the State of Jharkhand. About 400 acres of land has been purchased and civil activities started. Government of Jharkhand has allotted Iron Ore Mines to the Company at Chattu Bum Ghatkuri Reserves and Coal mines has been allotted at Patal East.

INTEGRATED STEEL AND POWER PLANT – CHHATTISGARH

The Company foresees the growth potential in the State of Chhattisgarh and has entered into a MOU for setting up an Integrated Steel and Power Plant of steel making facilities of 1.2 million tonnes and 300 MW captive power plants have been planned with an estimated capital outlay of Rs.5500 Millions. In furtherance of implementation of facilities under MOU, the Company has acquired substantial stake in a Chhattisgarh based steel company - Nova Iron and Steel Ltd for synergic business interest.

POWER PROJECT – CHHATTISGARH

The Company is planning 1000 MW Power Project based on waste heat recovery in the State of Chhattisgarh. Initially the project cost estimated to be Rs.40000.000 Millions. Land and other infrastructure facilities yet to be identified.

FINANCE

TERM LENDING

During the year, Company has availed Term Loan of Rs.8530.000 Millions out of sanctioned Rupee Term loan of 2,853 Millions, ECA of Rs.448.600 Millions from sanctioned ECA of Rs.3565.000 Millions from KFWIPEX Bank Gmbh, Frankfurt, Germany for Odisha Phase-IV project.

Axis Bank has appraised Odisha Phase V Project and syndicated rupee term loan of Rs.32500.000 Millions, ECB $410 million (equivalent to Rs. 18450.000 Millions) out of the total loan requirement of Rs.52750.000 Millions, sub ordinate debt of Rs.650 Millions and ECA of Euro 28.73 million (equivalent of X180 Millions) has been tied up with Bayern LB, Germany. Out of this, the Company has availed rupee loan of 1,144.62 Millions, ECB of Rs. 10575.000 Millions, sub ordinate debt of Rs.6500.000 Millions and ECA of Rs. 1069.500 Millions.

During the year, the Company has received Long Term Loan/ECB of Rs.9825.000 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW - GLOBAL SCENARIO

Steel makers prospects till 2015 are mixed, given consolidations in most parts of the old industrial world, a resurgence of steelmaking capacity addition in the Far East particularly in India, in Latin America (Brazil) and in the Middle East, a revitalization of the Russian steel industry and continued massive expansion in China. One factor stimulating new capacity is the technological revolution which is sweeping in the industry.

Despite the slowdown in late 2011, global economy is recovering in 2012 and the growth is expected to pick up in part of the globe in the second half of this year. Growth for Asia and Pacific region as a whole is projected to be 6% in 2012 and should pick up to 6.5% in 2013.

Steel demand growth in China to moderate but continue to grow at a healthy CAGR of 8-9% for 2010-2014. China is expected to drive future growth to boost the share of rural consumption in total domestic demand by raising minimum purchase price and subsidies to rural household on consumer durables.

The iron ore, coking coal prices are witnessing instability in global market. Greece debt crises further deepend the financial market. Nuclear sumani in Japan also impacted in industrial sector.

OVERVIEW OF INDIAN STEEL INDUSTRY

Indian steel industry plays a significant role in the country's economic growth. The major contribution directs the attention that steel is having a stronghold in the traditional sectors, such as infrastructure and construction, automobile, transportation, industrial application etc. Moreover steel variant stainless steel is finding innovative application due to its corrosion resistance property. India is the fourth largest steel producer of the world and struggling to become the second largest producer in the coming years after China. In India, GDP growth is projected to moderate 6.9% in 2012 picking up slightly to 7.3% in 2013. Global uncertainty has hurt the domestic business sentiments and has encouraged the firms and investors to delay the implementation of investments proposals. Country has acquired a central position on the global steel industry with its giant steel mills, continuous modernization and upgradation of old plants, expansion of production capacity, improving energy efficiency and backward integration into global raw material sources. Global steel giant across the world has shown its interest in the steel industry due to its phenomenal performance.

In domestic market the steel demand is expected to grow at CAGR of 10-12% between 2009-10 to 2014-15. Govt. more focusing on Public Private Participation projects for infrastructure development are being implemented with speedy growth. Construction industry has earmarked investment between 2010-11 to 2014-15 to the tune of Rs. 16809 billion almost 1.9 times of previous 5 years. Power, roads, irrigation and urban infrastructure, housing sector are considered to be key drivers of growth and is likely to contribute to a significant portion of long steel demand in India.

Sector consumption pattern of steel in domestic market was 12% by automobile sector, 32% in pipe sector, 13% in oil and gas sector, 10% in capital goods sector, 10% in consumer durables and 23% in other sector. Similarly, the long steel end use consumption pattern in India for 2009-10 was 43% by infrastructure, construction 31%, Capital goods 6%, automobiles 4%, pipes 2%, Railways 2% and others 12%.

Indian steel industry needs to address its own opportunities and challenges some of which are unique. The issues around social licences to operate and growing resources nationalism are very visible with their impact on growth of steel industry. India's iron ore resources and surplus iron ore production capacity are significant strengths that the steel industry has been unable to fully utilize due to host of issues, many being external to the industry as such. The Industry needs iron ore for survival since it is the lifeline and inadequate supply of quality ore affects the industry and its future growth.

Good quality deposits of iron ore, particularly in the eastern region located in Odisha, Jharkhand and Chhattisgarh is prime destination of steel industry. The Company visualizes the potential of growth in steel sector.

OVERVIEW OF INDIAN POWER SECTOR

The total installed capacity of Indian power sector is approx. 1.99 Lacs MW. The total fuel based power installed capacity is about 1.32 Lacs MW. Hydro (Renewable) capacity is 0.39 Lacs MW, nuclear based power capacity is 0.05 Lacs MW. Indian power sector suggest that the installed capacity will add around 45,000 MW by 2013-14. Renewal energy sources have the capacity of 0.25 Lacs MW. However, coal based power will remain the dominant source for energy in India. The next five years should ramp up the markets even more with high end investments.

Waste heat recovery process has been recognized as the competitive generation cost of power. In the Indian scenario, electricity sector is predominantly controlled by Public Sector Undertakings of Govt. of India in generation of electricity. Nuclear based power generation in the near future in the country shall bridge the gap of generation and demand of power sector. State level Corporations are also involved in the generation of electricity. The intra state distribution is managed by the State Electricity Boards (SEBs) and private companies. Power Grid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.

COMPANY'S PROSPECTS

The facilities under Phase- IV of Odisha Project have been successfully commissioned. After commissioning of facilities under Phase V, your Company will have unique integrated steel complex having total integration of primary steel products i.e. sponge iron, pig iron/ hot metal, Steel Billets, HR Coils and secondary steel products CR Coils/Sheets, Galvanized Plain/Corrugated Sheets, Galvalume Sheets, Colour Coated Sheets, Black Pipes, GI Pipes, Precision Tubes, Cable Tapes and Special Alloy Steel, Bars, Wire Rod, Wires and Bright Bars with total control on raw material supplies including own railway siding.

Mining of Company's coal blocks at Jamkhani and Bijhan and generation of additional power will further reduce the cost of inputs and saving in cost of production and increase in profitability. Hon'ble Supreme Court of India in its decision has also directed State of Odhisha to recommend for allotment of iron ore mines to Govt of India. Rohne Coal Block in the State of Jharkhand will supplement to meet the coal demand of the Company, further enhancing the self reliance. Allocation of Patal (E) coal block and Chatuburu Iron Ore Mines in the State of Jharkhand to the Company for its proposed Integrated Steel & Power Project will further make the Company truly integrated. 1000 MW Power project in the State of Chhatisgarh is envisaged for uninterrupted supply of Power.

FINANCIAL OPERATIONAL PERFORMANCE

TERM LENDING

During the year, Company has availed Term Loan of Rs. 853 Millions out of sanctioned rupee term loan of Rs.28530.000 Millions, ECA of Rs. 448.600 Millions from sanctioned ECA of Rs. 3565.000 Millions from KFW IPEX Bank Gmbh, Frankfurt, Germany for Odisha Phase IV project.

Axis Bank has appraised Odisha Phase V Project and syndicated rupee term loan of Rs.32500.000 Millions, ECB $410 million (equivalent to Rs. 18450.000 Millions) out of the total loan requirement of Rs. 52750.000 Millions, sub-ordinate debt of Rs. 6500.000 Millions, and ECA of Euro 28.73 million (equivalent of Rs. 1800.000 Millions) has been tied up with Bayern LB, Germany. Out of this, the company has availed rupee loan of 1,144.62 Millions, ECB of Rs.10575.000 Millions, sub ordinate debt of Rs. 6500.000 Millions and ECA of Rs. 1069.500 Millions.

During the year, the Company has received Long Term Loans/ECB of Rs. 9825.000 Millions.

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
Outstanding guarantees furnished to Banks and Financial Institutions including in respect of letters of credit (availed by the company)	5059.419	2506.518
Cheque / DD and bills discounted with banks	2037.276	1757.438
Claims against the Company not acknowledged as debt	0.368	0.368
Central / State Sales Tax Act	286.570	199.308
Orissa Entry Tax Act	309.549	23.452
Central Excise Act, 1944	299.153	1441.842
Income Tax Act, 1961	537.305	241.169

FIXED ASSETS

Tangible Assets

v Freehold Land

v Leasehold Land

v Building

v Railway Siding

v Plant and Equipment

v Furniture and Fixture

v Office Equipment

v Vehicles

v Assets not owned by the Company

Intangible Assets

v Technical Knowhow

v Computer Software

PRESS RELEASES:

SC RULES IN FAVOUR OF BHUSHAN STEEL

New Delhi March 15, 2012

The Supreme Court today allowed the appeal of Bhushan Power and Steel Limited and directed the Orissa government to act according to the memorandum of understanding (MoU) between the two, signed on May 15, 2002. Overruling the Orissa high court order, a bench headed by Justice Altamas Kabir also asked the state government to make recommendations to the Centre for granting iron ore mines, as per the MoU.

The Bhushan group had sought allocation of iron ore mines to it to set up an integrated steel plant in the state. However, after the signing of the MoU, there were disputes among the family members of the industrial family. The state government then stated that the MoU had become naught and asked the company to sign a new one. Later, when the family claimed that the disputes had been settled, the state government still insisted on a new MoU.

According to the group, the government was not complying with its obligation of making recommendations for grant iron ore mines. The industrial house said that in the MoU the state government had committed to provide land, iron ore mines, coal blocks and other facilities to it.

The company claims it has set up an integrated steel plant, which has been operating since 2005. It also claims that it has invested Rs 180000.000 Millions and is providing employment to at least 10,000 people. Putting forward these claims, it argued before the Supreme Court that the state was obliged to make recommendation to the Centre for grant of iron ore mines.

According to the company, it has been incurring losses since it has no captive mines and is forced to purchase irons ore from the market at five times the normal rate.

PCB SERVES CLOSURE NOTICE ON BHUSHAN STEEL

September 18, 2013

Company asked to shut down DRI kiln 6, 9 and 10 and 130 mw FBC boiler (unit-II) forthwith

Taking exception to violation of pollution norms, the Odisha State Pollution Control Board (OSPCB) has served closure notice on Bhushan Power and Steel Limited (BPSL) in Sambalpur district.

The OSPCB has intimated Sambalpur district Collector to ensure closure of direct reduced iron (DRI) plants 3 and 4, 60 mw FBC boiler and electric arc furnace under Section of 31 A of Air (Prevention and Control of Pollution) Act, 1981, and Section 33A of Water (Prevention and Control of Pollution) Act, 1974.

The BPSL operates integrated steel plant for production of sponge iron through DRI kiln, coal washery, captive power plant, coke oven plant, and cold rolling mill at Thelkoli in Sambalpur district.

The OSPCB had conducted a surprise inspection of the plant on the midnight of May 1, 2013, and verified the operational status and efficacy of pollution control devices. The OSPCB team observed several non-compliances of directions under Section 31 A of Air (P&CP) Act, 1981, and Section 33A of Water (P&CP) Act, 1974.

The board had ordered the plant to rectify lapses subsequently and not to resume operation of DRI 3 and 4, 60 mw FBC boiler and electric arc furnace. The company responded to the board’s direction stating that all action had been taken to comply with the orders.

However, regional officer of Sambalpur again inspected the plant site on July 2 and 3 and found recurring of violation of pollution norms, including heavy air pollution. “Facts and observations lead to the conclusion that the company has grossly failed to manage the problems of environmental pollution within the plant side and also failed to keep commitments made through affidavits,” notes OSPCB’s closure notice.

The notice directs the company to shut down DRI kiln 6, 9 and 10 and 130 mw FBC boiler (unit-II) forthwith and take appropriate actions to remove the defects in electro static precipitators and process equipment to the satisfaction of board and get prior approvals for restart of those units.

SUPREME COURT UNTANGLES BHUSHAN KNOT OVER ODISHA RESOURCES

Kolkata, May 2:

What's in a name? A lot, if it is a name of a corporate entity; more so, if it represented change in control. It took the apex court years to untangle complex legal knots created by the change of name of a company.

Bhushan Limited signed an MoU with the Government of Orissa, now Odisha, for setting up a 4-million-tonne steel plant in two phases. The State committed iron ore reserves in Keonjhar and Sundargarh districts and recommended allocation of coal blocks and facilitated a captive power plant in the State.

In February 2006, Bhushan Limited altered its name to Bhushan Power and Steel Limited (BPSL). The State Government rejected its claim for mining lease on the basis of MoU with Bhushan Limited.

The Supreme Court in a judgment on March 14 (Bhushan Power and Steel Limited and Ors vs State of Orissa) directed the State Government to stand by the MoU and ensure raw material security for BPSL. The State has allotted the agreement-specific reserve to some other firms.

The apex court noted that “trouble began to brew” in 2003.

“A decision had been taken to merge Bhushan Limited with Bhushan Steel and Strips Limited (BSSL) which had an identity that was separate from that of Bhushan Limited, though treated to be a family concern under the Bhusan family umbrella,” the judgment recorded. But on February 21, 2003, Mr Brij Bhusan Singhal, Chairman of the Group, said Bhushan Limited would not be merging with BSSL.

On March 17, 2003, BSSL also wrote to the Chief Minister, informing him that two companies had decided not to merge, with retrospective effect from April 1, 2002, as had been decided earlier.

On May 5, 2003, BSSL informed it was unable to process the setting up of the steel plant and “in order to minimise the friction” between the two family groups, BSSL had decided to set up a separate plant at a different location in Dhankanal district.

BHUSHAN POWER AND STEEL MAY LOSE COAL BLOCK OVER DELAY

Bhubaneswar Jul 04, 2011

Coal ministry warning follows a show cause notice issued on September 23 last year.

The Union coal ministry has threatened to de-allocate the coal block allotted to Bhusan Power and Steel Limited (BPSL) for inordinate delay by the company to develop the block. The block is located at Jamkhani in Sundergarh district of Orissa.

The ministry’s warning follows a show cause notice issued to the company on September 23 last year to explain the delay. The review committee of the ministry noted the reasons given by the steel company in response is not convincing.

Accordingly, the ministry, in a letter on June 29, has directed the company to develop the block immediately. Any further failure in this regard would lead to necessary action as per the terms and conditions of the allocation including de-allocation, it warned.

The Jamkhani coal block was allocated to the allocatee under Section 3(3) (a) (iii) of the Coal Mines (Nationalisation) Act-1973 vide letter no- 47011/1(13)/2001-CPAM/CA dated November 12, 2003 for supply of coal to meet the requirement of 2.6 mtpa (million tonne per annum) of coal for the company’s 0.68 mpa sponge iron plant and 135 Mw (mega watt) CPP.

In order to expedite the development of the coal block, various review meetings were held from time to time with the representatives of BPSL. The company had assured the ministry to commence coal production from March, 2010.

In the review meeting held on July 20/21 last year, it was noted that no serious efforts had been made by the company to develop the coal block.

It was also found that some of the important milestones such as land acquisition and R and R (rehabilitation and resettlement) are still pending since allocation of the coal block, the ministry said.

ARCELORMITTAL IN TALKS TO BUY STAKE IN BHUSHAN POWER AND STEEL – PAPER

MUMBAI Mar 18, 2010

(Reuters) - ArcelorMittal, the world's largest steelmaker, is in talks to buy a stake in unlisted Indian steel producer Bhushan Power and Steel Limited to gain access to its plant and mining rights, the Economic Times said.

Christophe Cornier, a member on the board of ArcelorMittal, and Chief Technology Officer Pierre Gugliermina were in New Delhi recently and met senior Bhushan Power officials, the newspaper said on Thursday, quoting people familiar with the development.

Bhushan Power Chairman Sanjay Singal told the paper there was no such plan. "ArcelorMittal hasn't approached us and we are not talking to the company," he was quoted as saying.

Officials at ArcelorMittal could not immediately be reached for comment.

Bhushan Power has seven steel plants with a combined annual capacity of 1.5 million tonnes, according to its website. It posted a turnover of 38.73 billion rupees ($850 million) in 2008.

The Economic Times said ArcelorMittal, which has about 8 percent of the global market, would gain access to a steel mill and some mining rights in eastern Indian state of Orissa if it succeeds in buying a stake.

MCNALLY BH ENGG

10th-Apr-2012

Mcnally Bh Engg - Received Order from Bhushan Power and Steel Limited (At a price of Rs. 1500.000 Millions)

McNally Bharat Engineering Company Limited has informed BSE that the Company have received an order from Bhushan Power and Steel Limited for Supply of Equipments (Shop Manufactured Mechanical Items) and Technological Structures, Detail Design, Engineering (Mechanical), Erection and Construction of Civil, Structural and Mechanical Work of the Recovery Coke Oven Plant and By Product Plant of Bhushan Power and Steel Limited, Rengali, Sambalpur, Orissa at a price of Rs. 1500.000 Millions

BHUSHAN POWER REVISES OPEN OFFER

Kolkata, June 25:

Bhushan Power and Steel Limited, along with Titanic Steel Industries Limited and Olympian Finvest Limited (formerly Olympian Steel Industries Limited), termed ‘Person Acting in Concert’, has revised its open offer to shareholders of Orissa Sponge Iron and Steel Limited. The intending acquirers have raised the size of the offer. In an announcement, the offer manager, Centrum Capital Limited, said that the offer size was revised from 52 lakh to 79.3 lakh shares of Orissa Sponge, the target company.

The earlier offer, in 2009, for 20 per cent of the target company’s paid-up capital has now been raised to 26 per cent. This is the second revision of the open offer and is in connection with the original public announcement published on February 7, 2009. On July 26, 2010, Bhushan had made its first revision to the offer. According to the revised schedule, though the specified date remains unchanged (February 27, 2009), the offer reopens on June 28 and closes on July 17. In the last few years, the Bhubaneswar-located company has seen multi-cornered moves for acquisition of its control.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.28
UK Pound	1	Rs. 99.03
Euro	1	Rs. 83.80

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.