MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	B.M.M. ISPAT LIMITED
Registered Office :	114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District – 583 222, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.04.2002
Com. Reg. No.:	08-030365
Capital Investment / Paid-up Capital :	Rs. 1029.248 Millions
CIN No.: [Company Identification No.]	U13100KA2002PLC030365
TAN No.: [Tax Deduction & Collection Account No.]	BLRB05074G
PAN No.: [Permanent Account No.]	AACCB3556B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in Trading in Iron Ore, Generation and Sale of Power, Manufacturing TMT Bars and Iron ORE Processing.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by dip in profitability of the company during financial year 2013 and increased in external borrowing of the company over previous year. 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.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loans facilities = BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	May 2014
Rating Agency Name	ICRA
Rating	Non- Fund based facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	May 2014

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 Corporative (91-80-41495660)

LOCATIONS

Registered Office / Factory :	114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District – 583 222, Karnataka, India
Tel. No.:	91-8394-244681/82/83/84
Fax No.:	91-8394-244680/244686
E-Mail :	suman@bmm.in
Website :	http://www.bmm.in
Location :	Owned
Corporate Office :	101, 1st Floor, Pride Elite, No.10, Museum Road. Bangalore – 560001, Karnataka, India.
Tel. No.:	91-80-41495660/ 1/ 3
Fax No.:	91-80-41495663/ 4
E-Mail :	bmmco@bmm.in bmmplant@bmm.in
Website :	www.bmm.in

DIRECTORS

As on : 19.09.2013

Name :

Mr. Saibal Kanti Gupta

Designation :

Director

Address :

No. 14, Singapore Gardens Kanakapura Road, Doddakallasandra (PO), Bangalore – 560062, Karnataka, India.

Date of Birth/Age :

18.08.1938

Date of Appointment :

26.07.2008

DIN No.:

00011138

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	L27102MH1994PLC152925	JSW Steel Limited	Director	25-04-94	25-04-94	-	Active	NO
2	L26933WB1991PLC052968	VESUVIUS INDIA LTD	Director	14-03-00	14-03-00	08-05-13	Active	NO
3	L27209KA1981PLC004343	BHUWALKA STEEL INDUSTRIES LIMITED	Director	29-09-07	12-07-01	14-04-10	Active	NO
4	L67120MH2001PLC217751	JSW HOLDINGS LIMITED	Director	12-07-01	12-07-01	-	Active	NO
5	L72200KA2001PLC029313	ENCORE SOFTWARE LIMITED	Director	24-07-01	24-07-01	25-08-07	Active	NO
6	U01010KA2003PTC032248	ECOCOKE AND POWER PRIVATE LIMITED	Director	14-07-03	14-07-03	-	Under Process of Striking off	NO
7	U74140KA2004PTC034641	FERROGREEN TECHNOLOGIES PRIVATE LIMITED	Director	06-09-04	06-09-04	31-10-09	Active	NO
8	U36911KA1995PLC018805	BHUWALKA JEWELLERS LIMITED	Director	07-02-05	07-02-05	01-04-10	Active	NO
9	U27109AP2005PLC046635	IVRCL STEEL CONSTRUCTION AND SERVICES LIMITED	Director	23-06-05	23-06-05	26-04-08	Active	NO
10	L29230KA1953PLC000748	H.M.T. LIMITED	Director	21-10-05	21-10-05	09-11-08	Active	NO
11	L27104UP1984PLC023979	JINDAL SAW LIMITED	Director	22-11-05	22-11-05	-	Active	NO
12	L45201KA1995PLC018475	SOBHA DEVELOPERS LIMITED	Director	28-06-06	28-06-06	-	Active	NO
13	L45201AP1987PLC007959	IVRCL LIMITED	Director	07-07-06	07-07-06	15-11-10	Active	NO
14	L27104TN1991PLC020533	SURANA INDUSTRIES LIMITED	Director	30-06-07	27-01-07	-	Active	NO
15	U74900DL2007PLC168338	JINDAL ITF LIMITED	Director	18-12-07	18-12-07	11-06-08	Active	NO
16	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Director	26-07-08	19-03-08	-	Active	NO
17	U02922KA1999GOI025572	HMT MACHINE TOOLS LIMITED	Director	26-09-08	21-04-08	24-12-09	Active	NO

Name :

Mr. Dinesh Kumar Singhi

Designation :

Managing Director

Address :

No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

14.01.1971

Qualification :

B.E.(Mech)

Date of Appointment :

30.04.2012

PAN No.:

AAMHS2836L

DIN No.:

00208064

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	U13201KA1999PTC024827	H.K.T. MINING PRIVATE LIMITED	Managing director	30-04-07	26-02-99	-	Amalgamated	NO
2	U67120KA1999PTC025712	SINGHI FINLEASE PRIVATE LIMITED	Director	15-09-99	15-09-99	-	Active	NO
3	U67120KA2001PTC028490	SNEHFIN INVESTMENTS PRIVATE LIMITED	Director	22-01-01	22-01-01	-	Active	NO
4	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Managing director	30-04-12	15-04-02	-	Active	NO
5	U01010KA2004PTC033519	SHREE GAVISIDDESHWARA MINERALS PRIVATE LIMITED	Director	02-04-07	16-11-04	-	Strike off	NO
6	U70101KA2005PTC037125	SHRAVANEE PROPERTIES PRIVATE LIMITED	Director	02-09-05	02-09-05	-	Active	NO
7	U45203KA2006PTC040944	RANJITPURA INFRASTRUCTURE PRIVATE LIMITED	Director	28-09-07	03-08-07	-	Active	NO
8	U67120KA2007PTC043709	SINGHI HOLDINGS PRIVATE LIMITED	Director	27-08-07	27-08-07	-	Active	NO
9	U40300KA2007PLC043746	BMM Cements Limited	Director	02-05-13	30-08-07	-	Active	NO
10	U70101KA2007PTC041769	SNEH SHELTERS PRIVATE LIMITED	Director	26-09-09	02-09-08	-	Active	NO Bottom of Form
11	U74899DL1995PTC070930	B. P.O .FINANCE AND INVESTMENTS PRIVATE LIMITED	Additional director	11-09-09	11-09-09	03-05-10	Active	NO
12	U70101WB1986PTC101350	PANCHMUKHI PROPERTIES Private LIMITED	Additional director	11-09-09	11-09-09	03-05-10	Active	NO
13	U40100KA2010PTC055239	BMM ENERGY PRIVATE LIMITED	Director	21-09-10	21-09-10	-	Active	NO
14	U70100KA2012PTC065798	BMM CONSTRUCTION & PROJECTS PRIVATE LIMITED	Director	07-09-12	07-09-12	-	Active	NO

Name :

Mrs. Snehalatha Singhi

Designation :

Director

Address :

No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

08.12.1972

Qualification :

B. Com

Date of Appointment :

15.04.2002

PAN No.:

AJMPS0427Q

DIN No.:

00208131

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	U67120KA1999PTC025712	SINGHI FINLEASE PRIVATE LIMITED	Director	15-09-99	15-09-99	-	Active	NO
2	U67120KA2001PTC028490	SNEHFIN INVESTMENTS PRIVATE LIMITED	Director	22-01-01	22-01-01	-	Active	NO
3	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Director	15-04-02	15-04-02	-	Active	NO
4	U13201KA1999PTC024827	H.K.T. MINING PRIVATE LIMITED	Director	06-05-03	06-05-03	-	Amalgamated	NO
5	U01010KA2004PTC033519	SHREE GAVISIDDESHWARA MINERALS PRIVATE LIMITED	Director	16-11-04	16-11-04	-	Strike off	NO
6	U70101KA2005PTC037125	SHRAVANEE PROPERTIES PRIVATE LIMITED	Director	02-09-05	02-09-05	-	Active	NO
7	U14107KA2007PTC043429	LOKAPUR LIMESTONE MINING PRIVATE LIMITED	Director	20-07-07	20-07-07	-	Strike off	NO
8	U67120KA2007PTC043709	SINGHI HOLDINGS PRIVATE LIMITED	Director	27-08-07	27-08-07	-	Active	NO
9	U40300KA2007PLC043746	BMM Cements Limited	Director	10-08-12	30-08-07	-	Active	NO
10	U45203KA2006PTC040944	RANJITPURA INFRASTRUCTURE PRIVATE LIMITED	Director	25-09-08	29-08-08	03-02-09	Active	NO
11	U70101KA2007PTC041769	SNEH SHELTERS PRIVATE LIMITED	Director	26-09-09	02-09-08	-	Active	NO
12	U70101WB1986PTC101350	PANCHMUKHI PROPERTIES Private LIMITED	Additional director	11-09-09	11-09-09	03-05-10	Active	NO
13	U74899DL1995PTC070930	B. P.O .FINANCE AND INVESTMENTS PRIVATE LIMITED	Additional director	11-09-09	11-09-09	03-05-10	Active	NO
14	U40100KA2010PTC055239	BMM ENERGY PRIVATE LIMITED	Additional director	03-09-12	03-09-12	-	Active	NO
15	U70100KA2012PTC065798	BMM CONSTRUCTION & PROJECTS PRIVATE LIMITED	Director	07-09-12	07-09-12	-	Active	NO

Name :

Mr. Laxmipat Dudheria

Designation :

Director

Address :

No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

24.08.1962

Qualification :

CA

Date of Appointment :

12.07.2004

DIN No.:

00300443

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	U67120KA2001PTC029030	VSL SECURITIES PRIVATE LIMITED	Director	21-05-01	21-05-01	-	Active	NO
2	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Director	12-07-04	12-07-04	-	Active	NO
3	U01010KA2004PTC033519	SHREE GAVISIDDESHWARA MINERALS PRIVATE LIMITED	Director	16-11-04	16-11-04	-	Strike off	NO
4	U45200KA2006PTC040470	VSL REALTIES PRIVATE LIMITED	Director	11-09-06	11-09-06	-	Active	NO
5	U14107KA2007PTC043429	LOKAPUR LIMESTONE MINING PRIVATE LIMITED	Director	20-07-07	20-07-07	-	Strike off	NO
6	U40300KA2007PLC043746	BMM Cements Limited	Director	30-08-07	30-08-07	-	Active	NO
7	U13201KA1999PTC024827	H.K.T. MINING PRIVATE LIMITED	Director	25-07-08	07-01-08	-	Amalgamated	NO
8	U51109WB1994PTC066645	POLSON TIE-UP PVT. LTD.	Director	09-09-09	09-09-09	-	Active	NO
9	U40100KA2010PTC055239	BMM ENERGY PRIVATE LIMITED	Director	21-09-10	21-09-10	-	Active	NO

Name :

Mr. Mrutunjaya Senapati

Designation :

Director

Address :

002, Aster Block, Fantasy Gardens Apartments, 2nd Main, Kasturinagar, Bangalore-560043, Karnataka, India.

Date of Birth/Age :

15.05.1947

Qualification :

B.Sc. (Mechanical Engineering), MBA

Date of Appointment :

01.06.2012

PAN No.:

ABUPS2716C

DIN No.:

02167644

Name :

Mr. Subramaniyam Pratapgiri

Designation :

Director

Address :

10-28 Patel Nagar, P and T Colony, Dilsukhnagar, Hyderabad-500060, Andhra Pradesh, India

Date of Birth/Age :

25.09.1965

Date of Appointment :

26.07.2008

DIN No.:

00038729

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	U99999AP1996PLC025571	VALLOUREC HEAT EXCHANGER TUBES LIMITED	Director	06-04-06	06-04-06	31-03-08	Active	NO
2	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Director	26-07-08	09-08-07	-	Active	NO
3	U92132AP2004PTC044170	DEEP ROOTS ENTERTAINMENT AND MOVIES PRIVATE LIMITED	Director	05-05-08	05-05-08	-	Active	NO
4	U40300KA2007PLC043746	BMM Cements Limited	Director	30-09-13	02-05-13	-	Active	NO

Name :

Mr. Bangalore Krishnamurthy Ganesh

Designation :

Whole-time director

Address :

Shashikiran, 1st Floor, Opposite Huda Park, 5^th Main, M J Nagar, Hospet, Karnataka – 583201, India

Date of Birth/Age :

07.05.1966

Date of Appointment :

01.07.2013

DIN No.:

02108349

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	U14219KA2005PTC036020	KOPPAL MINES AND MINERALS PRIVATE LIMITED	Director	27-06-05	27-06-05	05-05-08	Active	NO
2	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Whole-time director	19-09-13	01-07-13	-	Active	NO

KEY EXECUTIVES

Name :	Suman Bajoria
Designation :	Company Secretary
Address :	No. 251, 1^st Floor, 24^th Main, 5^th Phase, J.P. Nagar, Bangalore – 560 078, Karnataka, India.
Date of Birth/Age :	04.04.1982
Date of Appointment :	19.03.2008
Pan No.:	ANDPB4760G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 19.09.2013

Names of Shareholders	No. of Shares
Dinesh Kumar Singhi	47625000
Snehlatha Singhi	68605
Singhi Finlease Private Limited, India	15902910
Snehfin Investment Private Limited, India	34660750
Singhi Holdings Private Limited, India	3115000
Laxmipat Dudheria	50000
Dinesh Kumar Singhi (HUF)	55000
BPO Finance and Investment Private Limited, India	722500
Panchmukhi Properties Private Limited, India	725000
TOTAL	102924765

As on : 19.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	53.56
Directors or relatives of Directors	46.39
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Trading in Iron Ore, Generation and Sale of Power, Manufacturing TMT Bars and Iron ORE Processing.

Products :

PRODUCTS	ITEM CODE NO.
Iron Ore	26011130
Power	84101100
Sponge Iron	73071110
Iron Ore	26011130

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India, Corporate Accounts Group Branch - 13039, "Ozone", 2nd Floor, #6-3-669, Punjagutta Main Road, Hyderabad - 500082, Andhra Pradesh, India

· Punjab National Bank, Large Corporate Branch, Centenary Building, No.28, M G Road, Bangalore - 560001, Karnataka, India

· Canara Bank, Prim Corporate Branch, 25, M.G. Road, Bangalore - 560001, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Rupee term loan from bank	12440.171	9877.673
Other loans and advances	0.876	0.000
SHORT TERM BORROWINGS
Working capital loans from bank	1586.240	1357.313
Other loans and advances	609.662	788.073
Total	14636.949	12023.059

Banking Relations :	---
Auditors :
Name :	T.D. Jain and D.I. Sakaria Chartered Accountants
Address :	No. 34, Keshava Nivas, 3rd Floor, 1st Main, Gandhinagar, 1st Main, Gandhinagar, Bangalore – 560009, Karnataka, India
PAN No.:	AAAFO2177L
Subsidiaries :	· Ranjitpura Infrastructure Private Limited · BMM Global Resources Limited
Associates :	BMM Energy Private Limited

CAPITAL STRUCTURE

As on : 19.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
160000000	Equity Shares	Rs.10/- each	Rs.1600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
102924765	Equity Shares	Rs.10/- each	Rs.1029.248 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	1029.248	1029.248	1021.998
(b) Reserves & Surplus	12193.423	11850.539	10072.228
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	13222.671	12879.787	11094.226
(3) Non-Current Liabilities
(a) long-term borrowings	13883.821	11300.446	4809.622
(b) Deferred tax liabilities (Net)	1238.669	750.826	592.627
(c) Other long term liabilities	0.598	331.626	115.057
(d) long-term provisions	48.928	36.975	26.262
Total Non-current Liabilities (3)	15172.016	12419.873	5543.568
(4) Current Liabilities
(a) Short term borrowings	2195.902	2145.386	1621.846
(b) Trade payables	1187.830	2064.365	1470.941
(c) Other current liabilities	1945.437	1844.122	1131.300
(d) Short-term provisions	69.322	4.157	7.885
Total Current Liabilities (4)	5398.491	6058.030	4231.972
TOTAL	33793.178	31357.690	20869.766
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	15073.460	11965.859	9303.498
(ii) Intangible Assets	13.639	10.844	10.683
(iii) Capital work-in-progress	10753.721	10215.449	3694.586
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	764.191	871.788	988.646
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1775.738	2100.431	2737.391
(e) Other Non-current assets	9.046	0.000	11.181
Total Non-Current Assets	28389.795	25164.371	16745.985
(2) Current assets
(a) Current investments	50.000	5.000	0.000
(b) Inventories	3032.068	1791.538	2064.847
(c) Trade receivables	1142.239	755.627	319.281
(d) Cash and cash equivalents	247.080	1095.254	872.249
(e) Short-term loans and advances	922.028	2530.313	853..674
(f) Other current assets	9.968	15.587	13.730
Total Current Assets	5403.383	6193.319	4123.781
TOTAL	33793.178	31357.690	20869.766

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	16791.180	14937.496	10440.836
		Other Income	NA	75.014	2248.078
		TOTAL (A)	NA	15012.510	12688.914
Less	EXPENSES
		Cost of materials consumed		8103.557	5229.730
		Purchases of stock-in-trade		66.658	501.983
		Changes in inventories of finished goods, work-in-progress and stock-in-trade		(10.131)	(47.124)
		Employee benefit expense		339.871	231.436
		Other expenses		2997.785	2152.901
		TOTAL (B)	NA	11497.740	8068.926
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3516.870	3514.770	4619.988
Less	FINANCIAL EXPENSES (D)		991.910	602.847	238.172
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2524.960	2911.923	4381.816
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1474.940	870.383	495.860
	PROFIT BEFORE TAX (E-F) (G)		1050.020	2041.540	3885.956
Less	TAX (H)		436.060	545.979	593.770
	PROFIT AFTER TAX (G-H) (I)		613.960	1495.561	3292.186
	Earnings Per Share (Rs.)		118.46	14.53	31.99

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income		NA	9.96	25.95
Net Profit Margin (PBT/Sales)	(%)	6.25	13.67	37.21
Return on Total Assets (PBT/Total Assets}	(%)	4.71	10.07	24.01
Return on Investment (ROI) (PBT/Networth)		0.08	0.16	0.36
Debt Equity Ratio (Total Debt /Networth)		1.22	1.04	0.58
Current Ratio (Current Asset/Current Liability)		1.00	1.02	0.97

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	1021.998	1029.248	1029.248
Reserves & Surplus	10072.228	11850.539	12193.423
Net worth	11094.226	12879.787	13222.671
long-term borrowings	4809.622	11300.446	13883.821
Short term borrowings	1621.846	2145.386	2195.902
Total borrowings	6431.468	13445.832	16079.723
Debt/Equity ratio	0.580	1.044	1.216

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	10440.836	14937.496	16791.180
		43.068	12.410

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	10440.836	14937.496	16791.180
Profit	3292.186	1495.561	613.960
	31.53%	10.01%	3.66%

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	No
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	No
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

OVERVIEW AND REVIEW OF OPERATIONS

The Company is engaged in the business of manufacturing Sponge iron, Pellets and TMT bars. In addition, the Company generates power mainly used for captive consumption and excess is sold to India Energy Exchange. For the year, the Company recorded a revenue growth of 11.99% to Rs. 16791.180 millions from Rs. 14993.320 millions in the previous year. But the EBITDA margins decreased to 20.94% at Rs. 3516.870 millions in FY 2012-13 compared to 26.28% at Rs. 3940.970 millions in FY 2011-12. The PBT decreased to 6.25% at Rs. 1050.030 millions in FY 2012-13 compared to 16.15% at Rs. 2422.070 millions in FY 2011-12 and PAT to 3.66% at Rs. 613.960 millions compared to 12.51% at Rs. 1876.090 millions in FY 2011-12. The Year under the report was challenging for the steel industry with pressure on raw material availability and cost pressures. During the period, the performance of the Company has been adversely affected due to increase in input costs, elevated interest rates and depreciating Rupee. Further, due to non-availability of good quality of iron ore, the Company operated its beneficiation and pellet plant at lower production level.

During the year, the beneficiated ore production was 15,23,507 MT, compared to 13,47,668 MT in previous year. Pellet production was 12,77,542 MT compared to 11,38,009 MT in previous year. Sponge iron production from DRI increased by 17.26%, to 5, 45,203 MT from 4,64,949 MT in the corresponding previous year. Billet production from Induction Furnace and TMT bars production from Rolling Mill were lower compared to last year. Billet production reduced to 68,297 MT from 75,815 MT in the year and TMT production from Rolling Mill reduced to 63,570 MT from 66,319 MT in the previous year. Power generated during the year was 64 MW against 39 MW in previous year.

The operations at iron ore mines of the Company’s group entities, M/s Bharat Mines and Minerals and M/s Shree Gavisiddeshwara Minerals remain suspended due to ban on mining operations in Karnataka. However, the Honorable Supreme Court in its order dated 3rd September, 2012 had given clearances for starting few mines under Category? A? Mines which includes Company’s mining firm M/s Shree Gavisiddeshwara Minerals subject to all statutory approvals and clearances in place. It is expected that the mining operations in the firm shall commence in the current financial year. Subsequently, the Supreme Court in its order dated 18th April, 2013 has allowed mining operations in remaining mines under Category A. The Court also allowed mining operations to be resumed of mines under category B subject to terms and conditions as stipulated by the Court. Further, the Court cancelled the mining leases of Category? C? Mines which includes Company’s mining firm M/s Bharat Mines and Minerals.

Notwithstanding the grim situation of the past two years, outlook for 2013-14 and beyond looks quite promising with government policy coming back to track. With the commissioning of mines, additional supply of iron ore would be available for sale due to which there will be assured supply of quality iron ore. The e-auction system would also be phased out and open market may be restored once the supply opens up. With the above developments, it is expected that there would be continuous supply of iron ore and the prevailing market rates of the ore are expected to ease. Overall, the raw material situation for the steel industry is expected to turn very favorable as compared to the present scenario.

A detailed analysis of the Company’s operations, project review, financial review and analysis has been given in the Management Discussion and Analysis Report which forms part of the Annual Report as a separate section.

EXPANSION and FUTURE BUSINESS PLAN

In view of the conservative investment pattern, high inflation and elevated interest rates, the Company proposes to optimize the Phase III expansion plan by modifying the process flow of the proposed integrated steel plant from a two-line process envisaged earlier into a one-line process to rationalize the capital cost and achieve absolute reduction in capital cost. The Company has also deferred implementation of few technological packages and support infrastructural facilities which would also lead to saving in capital cost. The Company has approached the lenders to seek their approval, which is under process.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10385982	04/12/2013 *	5,600,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS BRANCH, 2ND FLOOR,, OZONE BUIL  DING, #6-3-669, PUNJAGUTTA,, HYDERABAD, Andhra Pra  desh - 500082, INDIA	B94515814
2	10344921	05/03/2012	1,200,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH,, PARWAZ PLAZA, COLLEGE ROAD,  , HOSPET, Karnataka - 583201, INDIA	B36032670
3	10344922	05/03/2012	250,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, CENTENARY BUILDING, NO.28  , M G ROAD, BANGALORE, Karnataka - 560001, INDIA	B36033280
4	10341146	22/02/2012	1,500,000,000.00	CANARA BANK	Prim Corporate Branch, 25, M.G. Road, BANGALORE,  Karnataka - 560001, INDIA	B34548677
5	10306952	07/11/2012 *	42,000,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE,, COLABA,, MU  MBAI, Maharashtra - 400005, INDIA	B64329352
6	10206134	13/09/2013 *	1,981,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH - 13039,, "OZONE"  , 2ND FLOOR, #6-3-669, PUNJAGUTTA MAIN ROAD, HYDER  ABAD, Andhra Pradesh - 500082, INDIA	B86646569
7	10172529	07/11/2012 *	4,600,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH, PARWAJ PLAZA, COLLEGE ROAD,  HOSPET, Karnataka - 583201, INDIA	B64329741
8	10124193	04/10/2008	1,000,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH CENTENARY BUILDING, NO. 2  8, M G ROAD, BANGALORE, Karnataka - 560001, INDIA	A47364393
9	10112198	05/03/2012 *	2,000,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, CENTENARY BUILDING, NO.28  , M G ROAD, BANGALORE, Karnataka - 560001, INDIA	B36031706
10	10255047	14/11/2009 *	900,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH, PARWAJ PLAZA, COLLEGE ROAD,  HOSPET, Karnataka - 583201, INDIA	A80484983

* Date of charge modification

UNSECURED LOAN (Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Loans and advances from directors	1317.174	1317.174
Loans and advances from others	125.600	105.600
Total	1442.774	1422.774

FIXED ASSETS

· Land and Land Improvements

· Freehold Land

· Building

· Office Equipments

· Plant and Machinery

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.60.44
UK Pound	1	Rs.100.24
Euro	1	Rs.80.35

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.