MIRA INFORM REPORT

Report Date :

15.04.2014

IDENTIFICATION DETAILS

Name :	STEELCO GUJARAT LIMITED

Registered Office :	Plot No. 2, G.I.D.C, Estate Palej, District Bharuch – 392 220, Gujarat

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	09.01.1989

Com. Reg. No.:	04-011748

Capital Investment / Paid-up Capital :	Rs.753.695 Millions

CIN No.: [Company Identification No.]	L27110GJ1989PLC011748

Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

Line of Business :	Manufacturer of Steel Products.

No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 3515000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Exist

Comments :	Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by low reserves and thin profitability levels of the company. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings 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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED

Management Non Co-operative (91-2642-277480)

LOCATIONS

Registered Office /Factory/ Head Office :	Plot No. 2, G.I.D.C, Estatel, Palej, District Bharuch – 392 220, Gujarat, India
Tel. No.:	91-2642-277479 / 480 / 481
Fax No.:	91-2642-277307
E-Mail :	sales@steelcogujarat.com secretarial@steelcogujarat.com shares@steelcogujarat.com
Website :	http://www.steelcogujarat.com

Branches :	Located at: · Baroda · New Delhi · Mumbai

DIRECTORS

AS ON 31.03.2013

Name :	Mr. N M Mohnot
Designation :	Managing Director
Date of Birth / Age :	59 years
Qualification :	B.Sc., C.A.
Experience :	33 years
Last Employment Held :	Indian Rayon Corporation Limited. (Unit: Jayshree Insulators)

Name :	Dr. R. S. Mamak
Designation :	Non Executive Vice Chairman (w.e.f. 01.02.2013)

Name :	Mr. R P Chandaria
Designation :	Director

Name :	Ms. Rashmi Chandaria
Designation :	Director
Experience :
Name :	Mr. J. Mehra
Designation :	Director

Name :	Mr. Mahendra Lodha
Designation :	Director

Name :	Mr. Vimal Chandaria
Designation :	Alternate to Mr. R. P. Chandaria

Name :	Mr. P.G.R Prasad
Designation :	Director (upto 16.11.2012)

Name :	Mr. S. S. Ranjan
Designation :	Additional Director (w.e.f. 22.05.2013)

KEY EXECUTIVES

Name :	Mr. Sunil Singhvi
Designation :	JT. General Manager Finance

Name :	Mr. Arvind Tambi
Designation :	Financial Controller and Assistant Company secretary

SHAREHOLDING PATTERN

AS ON 31.03.2014

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	33308398	78.26
Sub Total	33308398	78.26
Total shareholding of Promoter and Promoter Group (A)	33308398	78.26
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	19290	0.05
Financial Institutions / Banks	625642	1.47
Sub Total	644932	1.52
(2) Non-Institutions
Bodies Corporate	765675	1.80
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	5940287	13.96
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1773403	4.17
Any Others (Specify)	129127	0.30
Clearing Members	97894	0.23
Non Resident Indians	27708	0.07
Trusts	3525	0.01
Sub Total	8608492	20.23
Total Public shareholding (B)	9253424	21.74
Total (A)+(B)	42561822	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)	42561822	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Names of Shareholders	No. of Shares	Percentage of Holding
Spica Investments Limited	3,33,08,398	78.26
Total	3,33,08,398	78.26

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Names of Shareholders	No. of Shares	Percentage of Holding
IDBI Bank Limited	618570	1.45
Total	618570	1.45

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Products.

Product :

Item code No. (ITC Code)	Production Description
720918	Cold Rolled Steel
721230	Galvani C.R. Steel

AS ON 31.03.2011

PRODUCTION STATUS

Particulars

Unit

Licensed Capacity

Installed Capacity

Per Annum @

Actual Production

Cold Rolled (Steel) Coils

Current Year

Previous Year

144000

93099 #

94149 #

GP/GC Coils/Sheets

Current Year

Previous Year

78000

44474 $

43888 $

* Not applicable, since the Cold Rolling Industry has been de-licensed.

@ The capacity [as certified by the management] is notional, depending on a particular product mix.(Size -0.20*900 MM)

# Including 41234 MT (Previous Year 40908 MT) for Captive Consumption.

$ Including 153 MT (Previous Year 912 MT) defective and rejects used in-house for packing purposes.

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· State Bank of India

· Bank of India

· Canara Bank

· State Bank of Mysore

· State Bank of Travancore

· State Bank of Hyderabad

· The Federal Bank Limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans from Banks	383.211	9.000
Short Term Borrowings
Working Capital Loans from Banks [*]	549.173	604.566

Total	932.384	613.566

NOTES:

Long Term Borrowings:

Securities and Terms of Repayment for Secured Long Term Borrowings:

Rupee Term Loans:

Rupee Term Loan of Rs.403.386 Millions is secured by way of joint mortgage of immovable properties of the company situated at Plot No.2, GIDC Estate, Palej, District Bharuch, Gujarat (India) both present and future and by way of hypothecation of whole of immovable property of the Company, including plant and machinery and other movables, both present and future (Save and except inventories and book debts) whether installed or not, or in the course of transit by way of first charge to the lenders subject to the first charge on specified movable assets created in favour of banks providing Working capital finance) to rank on pari-passu basis.

The secured borrowings are further secured by way of pledge of 3,33,08,398 Equity Shares held by the promoters in favour of the Consortium of Bankers and corporate guarantee of Spica Business Corp., Panama, the holding Company of Spica Investments Limited, Mauritius.

The loans are rescheduled in terms of Corporate Debts Restructuring Scheme as approved by the Corporate Debt Restructuring Cell vide its approval letter Date June 27, 2012. Accordingly the loans are now repayable in stepped-up quarterly 30 instalments commencing from December 2013 as detailed hereunder.

Sr. No.	Financial year	% of Principal
1	2013-14	5%
2	2014-15	10%
3	2015-16	10%
4	2016-17	15%
5	2017-18	15%
6	2018-19	15%
7	2019-20	15%
8	2020-21	15%

Short Term Borrowings:

[*] Working Loan comprising Cash Credit (CC), Packing Credit Foreign Currency (PCFC), Export Packing Credit (EPC) and Demand Loan (DL) is repayable on demand from Banks are secured by way of hypothecation of the Company’s entire current assets including stock of goods, including raw material, work-in-process, finished goods, stores, consumables, spares, goods in transit etc. and book-debts, both present and future, to rank on “pari-passu” basis. These facilities are also secured by way of first charge over the entire fixed assets including Equitable mortgage over leasehold right over the factory land of the Company situated at Plot No.2, GIDC estate, Palej, Dist. Bharuch, Gujarat (India) both present and future. Interest for borrowing in Indian Currency through CC, EPC and DL is in the range of 9.25% p.a. to 16% p.a. and for borrowing in foreign currency through PCFC is in the range of Libor + 2.00% p.a. to Libor+3.50% p.a.

The secured borrowings are further secured by way of pledge of 3,33,08,398 Equity Shares held by the promoters in favour of the Consortium of Bankers.


Banking Relations :	--

Statutory Auditors :
Name :	Mukesh M. Shah and Company Chartered Accountants
Address :	Ahmadabad, Gujarat, India

Internal Auditor:

Name :	M/s. Deloitte Haskins and Selles Chartered Accountants
Address :	Vododara, Gujarat, India

Holding Company :	Spica Investment Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

75000000	Equity Shares	Rs. 10/- each	Rs.750.000 Millions
75000000	Preference Shares	Rs. 10/- each	Rs.750.000 Millions

	Total		Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

42561822	Equity Shares	Rs. 10/- each	Rs.425.618 Millions
	Less: Calls in arrears – Due from others		Rs.(0.123) Millions
32820000	Cumulative Redeemable Preference Shares	Rs. 10/- each	Rs.328.200 Millions

	Total		Rs.753.695 Millions

a) The reconciliation of the number of Shares outstanding is as under:

Equity Shares	Number of Shares
Number of shares at the beginning	42561822
Add: Bonus shares issued during the year/shares issued during the year	-
Less: Shares bought back/redeemed during the year	-
Number of shares at the end	42561822

b) The equity shares rank parri passu and carry equal rights with respect to voting and dividend.

In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

c) The Preference Shares are redeemable after a period of 18 years from the date of its issues i.e.29-09-2008.

The said shares do not carry any voting rights nor do they participate in the profits of the Company, except that they carry preferential right in respect of cumulative arrears of unpaid dividend. In the event of liquidation of the Company, the preference shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all other preferential amounts but before distribution to the equity shareholders.

d) In terms of conditions and covenents laid down in the approved Corporate Debt Restructuring Scheme, promoters are required to contribute a stipulated margin of Rs.34.700 Millions towards Lenders' sacrifice, which has been remitted by the promoters as an advance towards subscription to Preference Shares proposed to be issued by the Company. Pending the completion of relevant formalities and obtaining requisite approval from regulatory authorities, the amount so received is shown as “Share application money pending allotment”.

e) Details of Share Holders holding more than 5% of Share Capital :

Spica Investments Limited (Holding Company), Mauritius, which is a subsidiary of Spica Business Corp., Panama.

Name of Shareholder	Number of Shares
Number of Equity Shares	33308398
% to total share holding	78.26%
Number of Preference Shares	32820000
% to total share holding	100.00%

f) Equity shares allotted without payment being received in cash	Nil

g) Preference shares allotted without payment being received in cash	Nil

h) Equity Shares allotted as fully paid up shares by way of Bonus Shares	Nil

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	753.695	753.695	753.695
(b) Reserves & Surplus	90.228	148.439	498.740
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	34.864	0.000	0.000
Total Shareholders’ Funds (1) + (2)	878.787	902.134	1252.435

(3) Non-Current Liabilities
(a) long-term borrowings	404.811	31.890	63.962
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	1.610	1.779	1.794
(d) long-term provisions	20.669	20.548	17.062
Total Non-current Liabilities (3)	427.090	54.217	82.818

(4) Current Liabilities
(a) Short term borrowings	549.173	604.566	497.991
(b) Trade payables	1263.462	1623.150	1454.263
(c) Other current liabilities	114.588	145.027	151.020
(d) Short-term provisions	12.559	12.528	19.602
Total Current Liabilities (4)	1939.782	2385.271	2122.876

TOTAL	3245.659	3341.622	3458.129

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1250.514	1345.748	1512.158
(ii) Intangible Assets	0.621	0.480	0.801
(iii) Capital work-in-progress	9.260	18.412	10.892
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	106.882	97.209	98.915
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1367.277	1461.849	1622.766

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	655.054	859.598	808.303
(c) Trade receivables	810.447	640.149	726.961
(d) Cash and cash equivalents	63.070	91.657	78.094
(e) Short-term loans and advances	177.368	130.503	108.959
(f) Other current assets	172.443	157.866	113.046
Total Current Assets	1878.382	1879.773	1835.363

TOTAL	3245.659	3341.622	3458.129

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5415.145	4698.011	5363.915
		Other Income	32.311	14.122	15.325
		TOTAL (A)	5447.456	4712.133	5379.240

Less	EXPENSES
		Cost of Materials Consumed	4246.784	3653.328	4148.374
		Changes in Inventories of finished goods, work-in-progress	(2.532)	78.858	(64.873)
		Employee Benefits Expenses	109.166	109.977	96.274
		Other Expenses	842.902	796.354	831.819
		TOTAL (B)	5196.320	4638.517	5011.594

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		251.136	73.616	367.646

Less	FINANCIAL EXPENSES (D)		202.133	236.377	211.072

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.003	(162.761)	156.574

Less/ Add	DEPRECIATION/ AMORTISATION (F)		47.300	124.298	123.339

	PROFIT BEFORE TAX (E-F) (G)		1.703	(287.059)	33.235

Less	TAX (H)		0.000	0.000	8.000

	PROFIT AFTER TAX (G-H) (I)		1.703	(287.059)	25.235

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings on FOB Basis	2619.180	2589.732	2983.846
	TOTAL EARNINGS		2619.180	2589.732	2983.846

	IMPORTS
		Raw Materials	619.995	1119.965	842.170
		Spare Parts	12.682	24.911	42.989
		Capital Goods	0.000	0.000	4.613
	TOTAL IMPORTS		632.677	1144.876	889.772

	Earnings Per Share (Rs.)		(0.92)	(7.71)	(0.37)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.03	(6.09)	0.47

Net Profit Margin (PBT/Sales)	(%)	0.03	(6.11)	0.62

Return on Total Assets (PBT/Total Assets}	(%)	0.05	(8.90)	1.04

Return on Investment (ROI) (PBT/Networth)		0.00	(0.32)	0.03

Debt Equity Ratio (Total Debt /Networth)		1.09	0.71	0.45

Current Ratio (Current Asset/Current Liability)		0.97	0.79	0.86

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	753.695	753.695	753.695
Reserves & Surplus	498.740	148.439	90.228
Net worth	1252.435	902.134	843.923

long-term borrowings	63.962	31.890	404.811
Short term borrowings	497.991	604.566	549.173
Total borrowings	561.953	636.456	953.984
Debt/Equity ratio	0.449	0.706	1.130

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	5,363.915	4,698.011	5,415.145
		(12.415)	15.265

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	5,363.915	4,698.011	5,415.145
Profit	25.235	(287.059)	1.703
	0.47%	(6.11%)	0.03%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITY OF LONG TERM DEBT:

SOURCES OF FUNDS

31.03.2013

31.03.2012

31.03.2011

Current maturity of long term debt

21.576

35.433

36.553

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	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	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS:

HIGH COURT OF GUJARAT

TAX APPEAL No. 331 of2009

Status : PENDING

( Converted from : ST/391/2009 )

CCIN No : 001092200900331

Last Listing Date:

03/03/2010

Coram

· HONOURABLE MR.JUSTICE D.A.MEHTA

· HONOURABLE MS.JUSTICE HARSHA DEVANI

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER-CENTRAL EXCISE & CUSTOMS VADODARA-II	MR GAURANG H BHATT for: Appellant(s) 1

S.NO.	Name of the Respondant	Advocate On Record
1	STEELCO GUJARAT LIMITED	MR BL NARASIMHAN for :Opponent(s) 1


Presented On	: 06/02/2009	Registered On	: 06/02/2009
Bench Category	: DIVISION BENCH	District	: BHARUCH
Case Originated From	: THROUGH ADVOCATE	Listed	: 127 times
StageName	: FOR FINAL HEARING - TAX MATTERS


Act	CENTRAL EXCISES AND SALT ACT, 1944

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	06/02/2009	CERTIFIED COPY	MR GAURANG H BHATT ADVOCATE for PETITIONER(s) 1	6	MR GAURANG H BHATT:1
2	06/02/2009	MEMO OF APPEAL/PETITION/SUIT	MR GAURANG H BHATT ADVOCATE for PETITIONER(s) 1	50	MR GAURANG H BHATT:1
3	15/08/2009	VAKALATNAMA	MR BL NARASIMHAN ADVOCATE for RESPONDENT(s) 1	-	MR BL NARASIMHAN:1
Linked Matters

Court Proceedings

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

03/03/2010

FOR FINAL HEARING - TAX MATTERS

RULE/ADMIT

· HONOURABLE MR.JUSTICE D.A.MEHTA

· HONOURABLE MS.JUSTICE HARSHA DEVANI

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

Download

TAX APPEAL/312/1999

· HONOURABLE MR.JUSTICE K.A.PUJ

· HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

30/11/2009

ORDER

Download

TAX APPEAL/331/2009

· HONOURABLE MR.JUSTICE D.A.MEHTA

· HONOURABLE MS.JUSTICE HARSHA DEVANI

10/03/2010

ORDER

Download

UNSECURED LOAN:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From banks	1.600	2.890
From Others / Intercorporate Deposits	20.000	20.000

Total	21.600	22.890

NOTES:

Long Term Borrowings:

Finance obligations of Rs.5.523 Millions is taken against Hypothecation of respective vehicles and it is repayable as per the repayment schedule ranging 36 to 48 equal monthly instalments along with interest for the year. The outstanding amount as at 31^st March 2013 is Rs.3.001 Millions. [As at 31-03-2012: Rs.4.323 Millions]

There are no continuous default as on 31st March 2013.

CHARGES:

STEELCO GUJARAT LIMITED

(Along with: SPECIA INVESTMENTS LIMITED)

JATINDER DINANATH MEHTA

SEBI

DID NOT COMPLY WITH MINIMUM PUBLIC SHAREHOLDING REQUIREMENT

DEBARRED/RESTRAINED FROM BUYING/SELLING/DEALING/IPOS IN SECURITIES/SPECIFIED SCRIPS DIRECTLY/INDIRECTLY FROM 04-JUNE-2013 TILL COMPLIANCE MINIMUM PUBLIC SHAREHOLDING REQUIREMENT

DIRECTED FREEZINGOF VOTING RIGHTS AND CORPORATE BENEFITS LIKE DIVIDEND, RIGHTS, BONUS SHARES, SPLIT, ETC. WITH RESPECT TO EXCESS OF PROPORTIONATE PROMOTER / PROMOTERS COMPLIANCE MINIMUM PUBLIC SHAREHOLDING REQUIREMENT

RESTRAINED SHAREHOLDERS FORMING PART OF PROMOTER / PROMOTER GROUP FROM HOLDING ANY NEW POSITION AS DIRECTOR IN ANY LISTED COMPANY FROM 04-JUNE-2013 TILL COMPLIANCE MINIMUM PUBLIC SHAREHOLDING REQUIREMENT

RESTRAINED DIRECTORS FROM HOLDING ANY NEW POSITION AS DIRECTOR IN ANY LISTED COMPANY FROM 04-JUNE-2013 TILL COMPLIANCE MINIMUM PUBLIC SHAREHOLDING REQUIREMENT

04-JUNE-2013

MAHENDRA GUMANMALJI LODHA

NARENDRA MAL MOHNOT

RAGHBIR SINGH MAMAK

RASHMIKANT DEVCHAND CHANDARIA

RATILAL CHANDARIA

SUNDARAM SRINIVAS RANJAN

VIMAL RATILAL CHANDARIA

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10149742	22/10/2012 *	2,537,200,000.00	STATE BANK OF INDIA LEAD BANK	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	B61603825
2	10107812	08/10/2012 *	2,537,200,000.00	STATE BANK OF INDIA LEAD BANK	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	B60737194
3	80027724	11/01/2003	54,000,000.00	COLLECTOR OF ELECTRICITY	O/O C.E. ELECTRICAL INSPECTOR & COLLECTOR OF ELEC-, BLOCK NO.18, 6TH FLOOR, UDYOD BHAVAN, GANDHINAGAR - 382017, GUJARAT, INDIA	-
4	80027723	11/01/2003	250,000,000.00	STATE BANK OF INDIA	IF BRANCH, RACE COURSE CIRCLE, BARODA - 390007, GUJARAT, INDIA	-

* Date of charge modification

REVIEW OF OPERATIONS:

During the year, subject has made a net profit of Rs.1.700 Millions on turnover of 88,901 MT Valuing Rs.5447.500 Millions against a net loss of Rs.287.100 Millions on turnover of 77,114 MT valuing Rs.4712.100 Millions in the previous year. Subject has made Cash Profit of Rs.49.000 Millions for the year ended 31st March 2013 as against a Cash loss of Rs.162.800 Millions in the previous year. This can be mainly attributed to improved capacity utilization, selection of appropriate product mix and cost efficiency during the year as follows:-

1) Selection of appropriate product mix resulted into better sales realization per MT.

2) Subject has improved its turnover by 15% resulting into efficient utilization of equipments and reduction in costs.

3) Financial Costs during the year of operations have reduced by Rs.34.300 Millions due to the CDR implementation.

4) Forex losses reduced by Rs.17.500 Millions to a bare minimum of Rs.0.200 Millions during the year under review.

5) Power cost has reduced by Rs.28.300 Millions in view of purchase of power through Open Access by entering into an agreement with Indian Energy Exchange.

6) Depreciation reduced by Rs.77.000 Millions mainly on account of the Rolling Mills and other ancillary equipments fully depreciated during the year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES AND OUTLOOK:

During 2012, global capacity utilization in the steel sector remained below 80% due to continued growth in new steelmaking facilities particularly in developing countries coupled with sluggish demand of steel. Globally steelmaking capacity will continue to exceed the demand growth in 2013 with expected excess capacity of 479 million tonnes.

As a result, capacity utilization is also expected to remain below 80% in 2013, to limit the amount of excess supply in the market. Margins will continue to be tight in 2013 as steel prices will remain flat and costs are unlikely to decrease significantly in 2013. From 2014, the demand outlook may improve modestly resulting in modest increases in capacity utilization and steel prices.

The World Steel Association (WSA) has forecasted that steel demand in India to pick up and 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 7.0% in view of the reform measures aimed at narrowing the fiscal deficit, coupled with measures to improve the foreign direct investment climate.

The overall outlook for the steel sector is positive and the demand is likely to pick up towards the end of current financial year on the back of revival in economic growth and Govt.’s measures to ease infrastructure investments.

Infrastructure development of the country coupled with high targeted spending in core sector as announced by the Government in the Union Budget will boost the economy and accelerate the domestic demand of steel. The development of ports and infrastructure of roads and bridges are expected to accelerate steel demand and your Company is also poised to take benefit of the same.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Subject has made net Profit of Rs.1.700 Millions on turnover of 88,901 MT valuing Rs.5447.500 Millions against net loss of Rs.287.100 Millions on turnover of 77,114 MT. valuing Rs.4712.100 Millions in the previous year.

FIXED ASSETS:

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fixture and Other Office Equipments

· Vehicles

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER,

2013

(Rs. In Millions)

Particulars	Unaudited for the quarter ended		Unaudited for the half year ended
	30.09.2013	30.06.2013	30.09.2013
1. Income form operations
a) Net sales/ Income from operation (net of excise duty)	1271.378	1115.303	2404.550
b) Other operating income	36.990	28.236	65.226
Total income from Operations(net)	1308.368	1143.539	2451.907
2.Expenditure
a) Cost of material consumed	976.857	899.256	1876.113
b) Purchases of stock in trade	24.873	0.000	24.873
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	20.518	(24.676)	(4.159)
d) Employees benefit expenses	28.150	29.909	58.059
e) Depreciation and amortization expenses	11.615	11.445	23.060
f) Other expenditure	185.218	224.132	409.350
Total expenses	1247.231	1140.066	2387.297
Profit / (Loss) from Operations before other Income, Finance Cost and Exceptional Items (1-2)	61.137	3.473	64.611
Other Income	4.066	3.972	8.038
Profit / (Loss) from Ordinary Activities before finance cost and exceptional items (3+4)	65.203	7.445	72.649
Finance cost	46.294	41.650	87.944
Profit / (Loss) from Ordinary Activities after finance cost but before exceptional items (5-6)	18.909	(34.205)	(15.296)
Exceptional items - Gain / (Loss) - Refer note no 2	0.000	0.000	0.000
Profit /(Loss) from Ordinary Activities before tax (7+8)	18.909	(34.205)	(15.296)
Tax expense	0.000	0.000	0.000
Net profit / (Loss) from Ordinary Activities after tax (9-10)	18.909	(34.205)	(15.296)
Extraordinary items	0.000	0.000	0.000
Net profit / (Loss) for the period (11-12)	18.909	(34.205)	(15.296)
Paid-up Equity Share Capital (face value of Rs.10/- each)	425.495	425.495	425.495
Reserves excluding revaluation reserve as per balance sheet of previous accounting year	0.000	0.000	0.000
Earning per share (EPS)
a) - Basic EPS before and after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized)	0.20	(1.04)	(0.84)
b) - Diluted EPS before and after Extraordinary items for the period, for the year to date and for the previous year (not to be annualized) (*)	0.20	(1.04)	(0.84)

(Rs. In Millions)

A. Particulars of shareholding
1. Public Shareholding
- Number of shares	9253424	9253424	9253424
- Percentage of shareholding	21.74	21.74	21.74
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	33308398	33308398	33308398
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100%	100%	38.33%
Percentage of shares (as a % of total share capital of the company)	78.26%	78.26%	30.00%

b) Non Encumbered
Number of shares	0	0	0
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	0%	0%	0%

Percentage of shares (as a % of total share capital of the company)	0%	0%	0%

B. Investor Complaints	For the Quarter Ended 30^th September, 2013
Pending at the beginning of the quarter	0.00
Receiving during the quarter	5.00
Disposed of during the quarter	5.00
Remaining unreserved at the end of the quarter	0.00

(Rs. In Millions)

STANDALONE STATEMENT OF ASSETS AND LIABILITIES	AS ON 30.09.2013
	Unaudited
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	753.695
(b) Reserves & Surplus	46.381
(c) Money received against share warrants	34.864
Sub-total - Shareholders’ funds	834.940

(2) Non-Current Liabilities
(a) long-term borrowings	456.609
(b) Other long term liabilities	0.610
(c) long-term provisions	21.437
Total Non-current Liabilities	478.656

(3) Current Liabilities
(a) Short term borrowings	471.169
(b) Trade payables	1285.010
(c) Other current liabilities	104.448
(d) Short-term provisions	12.560
Total Current Liabilities	1873.187

TOTAL - EQUITY AND LIABILITIES	3186.783

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1203.041
(ii) Intangible Assets	0.495
(iii) Capital work-in-progress	10.157
(b) Deferred tax assets (net)	0.000
(c) Long-term Loan and Advances	144.768
(d) Other Non-current assets	0.000
Total Non-Current Assets	1358.461

(2) Current assets
(b) Inventories	746.110
(c) Trade receivables	726.970
(d) Cash and cash equivalents	81.333
(e) Short-term loans and advances	121.365
(f) Other current assets	152.544
Total Current Assets	1828.322

TOTAL - ASSETS	3186.783

NOTES:-

1) The Company has only one manufacturing unit at Palej, to produce steel products i.e. cold rolled and galvanized steel and hence there is only a single segment in terms of Accounting Standard on "Segment Reporting" (AS-17) issued by ICAI applicable w.e.f. 1st April, 2001.

2) The above financial results were reviewed by the Audit Committee and have been taken on record by the Board of Directors at its meeting held on 15th November, 2013.

3) The figures of previous year / quarter have been regrouped and reclassified wherever necessary.

4) Basic & Diluted EPS has been arrived at after considering dividend payable on Preference share Capital.

5) Depreciation for the quarter ended 30th September 2013 is net of depreciation on revaluation Rs. 143.54 lakhs, claimed from Revaluation Reserve.

6) Other expenses include a sum of Rs. 188.03 Lac towards marked to market variation of foreign exchange transaction for quarter. Ended 30th September 2013.

7) The 'Limited Review' by the statutory Auditors for the quarter as required under clause 41 of the Listing Agreement has been completed and the related report is being forwarded to the Stock Exchange. This report does not have any impact on the above results and above notes, which need to be explained.

8) During the last week of the quarter the factory premises got flooded due to heavy rains in surrounding area resulting into disruption in operations for 10 days. As the company is fully insured for all the losses due to flood, the impact of the same has not been considered in the above results, pending finalisation of losses by surveyors.

9) Promoter’s contribution received as per approved CDR scheme has been shown as share application money pending approval from the statutory authorities.

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.60.27
UK Pound	1	Rs.101.10
Euro	1	Rs.83.74

INFORMATION DETAILS

Information Gathered by :	NYA

Analysis Done by :	KRN

Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
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		30

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.

MIRA INFORM REPORT

0.03

0.03

0.05

0.00

1.09

0.97

Unit