MIRA INFORM REPORT

Report Date :

19.06.2014

IDENTIFICATION DETAILS

Name :	SUNFLAG IRON AND STEEL COMPANY LIMITED
Registered Office :	33, Mount Road, Sadar, Nagpur – 440001, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.09.1984
Com. Reg. No.:	11-034003
Capital Investment / Paid-up Capital :	Rs.1622.000 Millions
CIN No.: [Company Identification No.]	L27100MH1984PLC034003
TAN No.: [Tax Deduction & Collection Account No.]	NGPS06339E NGPS02039C
PAN No.: [Permanent Account No.]	AACCS3376C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Sale of Special Steel Rolled Products.
No. of Employees :	1400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 19262000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exits
Comments :	Subject is an established company having satisfactory track record. The company has incurred a loss during financial year 2013. However, net worth of the company is satisfactory. The rating also takes into account the long track record of the company in manufacturing of mild steel and alloy steel products, experienced management and established position in the alloy steel industry. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct and as per commitment. The company can be considered normal 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.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long - term bank facilities BBB+
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	October 9, 2013

Rating Agency Name	CARE
Rating	Short – term bank facilities A2
Rating Explanation	Have strong degree of safety and carry very low credit risk.
Date	October 9, 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 DENIED BY

Name :	Mr. Mahadevan
Designation :	General Manager
Contact No.:	91-712-2524661
Date :	17.06.2014

LOCATIONS

Registered / Head / Regional Office :	33, Mount Road, Sadar, Nagpur – 440001, Maharashtra, India
Tel. No.:	91-712-2524661/ 2520356/ 57/ 58/ 2532901
Fax No.:	91-712-2520360
E-Mail :	investor@sunflagsteel.com mdparakh@sunflagsteel.com
Website :	www.sunflagsteel.com
Factory :	Bhandara Road, District Bhandara – 441905, Maharashtra, India
Tel. No.:	91-7197-285551 to 285555
Fax No.:	91-7184-285570/ 285740
Warehouses :	Located at : Ø Kolkata Ø Chennai Ø Delhi Ø Faridabad Ø Ludhiana Ø Bangalore Ø Kanpur Ø Madurai Ø Jaipur Ø Bhiwadi Ø Mumbai
Branch Offices :	Located at : Ø Delhi Ø Indore Ø Bangalore
Regional Office 1 :	C/O Themco Private Limited, 8-B. T. Road, Belgharia, Kolkata – 700056, West Bengal, India
Tel No. :	91-33-25442429/ 25442430
Fax No. :	91-33-25442431
Regional Office 2 :	Plot No. 12, Sector – 6, Mathura Road, Faridabad- 121006, Haryana, India
Tel. No.:	91-129-4290801-08/ 4290887/ 4290888
Fax No.:	91-129-4061646
Regional Office 3 :	705, 7^th Floor, Challa Mall, 11 / 11A, Sir Thiagaraya Road, T. Nagar, Chennai - 600017, Tamilnadu, India
Tel. No.:	91-44-24341065/ 24342262/ 24342263/ 24323724
Fax No.:	91-44-24347649
Regional Office 4 :	Office No. 65-69, Fifth Floor, 'Sai Kripa Bhavan', Pune - Mumbai Highway, Opposite KSB Pumps, S No 5743, Kharalwadi, Pimpri District Pune – 411018, Maharashtra, India
Tel. No.:	91-20-32940427/ 27425607/ 27424685
Fax No.:	91-20-27423013
Regional Office 5 :	307, Hamilton-B, Hiranandani Business Park, Ghodbunder Road, Thane (West) - 400607, Maharashtra, India
Tel. No.:	91-22-25862294/ 95/ 96/ 25861928
Fax No.:	91-22-25861931

DIRECTORS

As on 31.03.2013

Name :	Mr. P. B. Bhardwaj
Designation :	Chairman cum Managing Director
Name :	Mr. Ravi Bhushan Bhardwaj
Designation :	Vice Chairman and Managing Director
Date of Birth/ Age :	70 Years
Experiences :	48 Years
Name :	Mr. Pranav Bhardwaj
Designation :	Joint Managing Director
Date of Birth/ Age :	39 Years
Qualification :	B. Sc
Experiences :	18 Years
Name :	Dr. E. R. C. Shekar
Designation :	Director
Name :	Mr. S Gajendran
Designation :	Director
Name :	CA Jayesh Madhavji Parmar
Designation :	Director
Name :	Mr. B.W. Ramteke
Designation :	Director (Effective 28th May 2012) Nominee - IDBI Bank Limited
Name :	Mr. Surendra Kumar Gupta
Designation :	Director and CEO
Date of Birth/ Age :	65 Years
Qualification :	B. E. (Mechanical) and Holding Diploma in Business Management
Experiences :	35 Years

KEY EXECUTIVES

Name :	CA R. Muralidhar
Designation :	Chief Financial Officer - Executive Director (Finance)
Name :	Mr. Mukesh D. Parakh
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1612140	0.99
Bodies Corporate	8333356	5.14
Sub Total	9945496	6.13
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	13217398	8.15
Bodies Corporate	65253582	40.23
Sub Total	78470980	48.38
Total shareholding of Promoter and Promoter Group (A)	88416476	54.51
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	88000	0.05
Financial Institutions / Banks	89870	0.06
Insurance Companies	1100	0.00
Foreign Institutional Investors	50000	0.03
Sub Total	228970	0.14
(2) Non-Institutions
Bodies Corporate	11381783	7.02
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	27140849	16.73
Individual shareholders holding nominal share capital in excess of to Rs. 0.100 million	34348719	21.18
Any Others (Specify)	680706	0.42
Non Resident Indians	528795	0.33
Clearing Members	150706	0.09
Trusts	1105	0.00
Overseas Corporate Bodies	100	0.00
Sub Total	73552057	45.35
Total Public shareholding (B)	73781027	45.49
Total (A)+(B)	162197503	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)	162197503	0.00

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

Name of the Shareholder	Details of Shares held
	No. of Shares held	As a % of grand total
Sunflag Limited, Channel Islands	6,52,53,582	40.23
Supra Corporation Limited	83,33,356	5.14
Ravi Bhushan Bhardwaj	7,00,000	0.43
Pranav Ravi Bhardwaj	9,12,140	0.56
Suhrit Ravi Bhushan Bhardwaj	1,32,17,398	8.15
Total	8,84,16,476	54.51

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

Name of the Shareholder	No. of Shares held	% of Total No. of Shares
Usha B Sanghavi	5443043	3.36
Kanwaljit Singh Bakshi	5000000	3.08
Bhupendra G Sanghavi	4361860	2.69
Baijnath Maniram Holdings and Finance Company Private Limited	3000000	1.85
Dhirendra B Sanghavi	2569675	1.58
Bhupendra G Sanghavi HUF	1868267	1.15
Total	22242845	13.71

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	% of Total No. of Shares
Usha B Sanghavi	5443043	3.36
Bhupendra G Sanghavi	4361860	2.69
Dhirendra B Sanghavi	2569675	1.58
Bhupendra G Sanghavi HUF	1868267	1.15
Bhavini D Sanghavi	680268	0.42
Dhirendra B Sanghavi HUF	240000	0.15
Total	15163113	9.35

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale of Special Steel Rolled Products.

Products :

Item Code No. (ITC Code)	Product Description
72262000	Rolled Products
72241000	Billets
72031000	Sponge Iron
72011000	Pig Iron

GENERAL INFORMATION

No. of Employees :

1400 (Approximately)

Bankers :

Ø State Bank of India

Ø Bank of India

Ø Canara Bank

Ø Indian Bank

Ø State Bank of Bikaner and Jaipur

Ø IDBI Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loans - From Banks	2008.600	2659.100
SHORT TERM BORROWINGS
Loans repayable on demand
Borrowings for Working Capital from banks	1450.200	1826.400
Total	3458.800	4485.500

NOTE:

LONG TERM BORROWINGS

1. Term Loans from Banks are secured by a first mortgage of all the Company's immovable properties, both present and future ranking pari passu interest and a first charge by way of hypothecation of all the Company's movables subject to prior charges created in favour of Company's bankers on inventories, book debts and other movables for securing the borrowings for working capital requirement.

2. New term loan of Rs. 2.000 millions borrowed during the year from State Bank of India is further secured by Personal Guarantee of Shri Ravi Bhushan Bhardwaj, Vice Chairman and Managing Director of the Company.

3. The Company has not defaulted in either repayment of principle or interest during the year.

@ The Unsecured loans comprising interest free loans given by Promoters. There is no stipulation as to the repayment hence there is no default in repayment during the period.

# The Unsecured loan comprising interest free Sales Tax Loan. The repayment of the Sales Tax loan is made as per the schedule and there is no default in repayment during the period.

SHORT TERM BORROWINGS

1. Working Capital Borrowings are secured by way of hypothecation of inventories and book debts and further secured by way of second charge ranking pari passu over the fixed assets both present and future, subject to prior charges created by the Company in favour of banks for securing term loan. Working capital borrowings are further secured by the personal guarantee of Shri Ravi Bhushan Bhardwaj, Vice Chairman and Managing Director of the Company.

ii. The Company has not defaulted in either repayment of principle or interest during the year.

Banking Relations :	--
Auditors :
Statutory Auditors :
Name :	Patel, Shah and Joshi Chartered Accountants
Address :	Mumbai, Maharashtra, India
Cost Auditors :
Name :	G. R. Paliwal and Company Cost Accountants
Address :	Nagpur, Maharashtra, India
Associate Enterprise :	Ø Haryana Television Limited Ø Ridge Farm Developers (Private) Limited
Joint Venture Companies :	Ø Madanpur (North) Coal Company Private Limited Ø C T Mining Private Limited Ø Gujarat State Mining and Resources Corporation Limited
Subsidiary Companies :	Ø Sunflag Power Limited Ø Sunflag Special Steels Limited Ø Khappa Coal Company Private Limited
Enterprise which have significant influence :	Ø Sunflag Limited, Channel Island, UK

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	10% Cumulative Preference Shares	Rs.100/- each	Rs.400.000 Millions
165000000	Equity Shares	Rs.10/- each	Rs.1650.000 Millions
	Total		Rs. 2050.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
162197503	Equity Shares	Rs.10/- each	Rs.1622.000 Millions

After 25.09.2013

Authorised Capital : Rs. 2050.000 Millions

Issued, Subscribed & Paid-up Capital :Rs. 1621.975 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	1622.000	1622.000	1622.000
(b) Reserves & Surplus	3193.700	3318.700	3125.000
(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)	4815.700	4940.700	4747.000
(3) Non-Current Liabilities
(a) long-term borrowings	2772.500	3484.700	2713.800
(b) Deferred tax liabilities (Net)	558.000	558.000	488.100
(c) Other long term liabilities	130.600	166.000	279.000
(d) long-term provisions	138.900	105.200	610.200
Total Non-current Liabilities (3)	3600.000	4313.900	4091.100
(4) Current Liabilities
(a) Short term borrowings	1450.200	1826.400	1102.700
(b) Trade payables	2406.800	1920.200	548.300
(c) Other current liabilities	826.800	821.900	616.300
(d) Short-term provisions	476.200	456.400	605.500
Total Current Liabilities (4)	5160.000	5024.900	2872.800
TOTAL	13575.700	14279.500	11710.900
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6178.000	4169.300	3449.700
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	327.000	2362.500	1893.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	76.700	76.500	75.800
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	295.300	553.400	862.900
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	6877.000	7161.700	6281.600
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3269.300	3918.400	2990.300
(c) Trade receivables	1556.200	1496.000	1409.500
(d) Cash and cash equivalents	534.000	526.800	345.500
(e) Short-term loans and advances	1325.500	1134.100	676.200
(f) Other current assets	13.700	42.500	7.800
Total Current Assets	6698.700	7117.800	5429.300
TOTAL	13575.700	14279.500	11710.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
	Income		15693.100	16181.800	15440.700
	Other Income		78.200	52.800	56.000
	TOTAL		15771.300	16234.600	15496.700
Less	EXPENSES
	Cost of Materials Consumed		9438.600	11126.600	9862.200
	Other Manufacturing Expenses		3468.100	3296.000	2755.200
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade		168.300	(787.000)	(122.900)
	Employees benefits expense		758.600	716.400	660.200
	Other expenses		674.900	626.200	663.000
	TOTAL		14508.500	14978.200	13817.700
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1262.800	1256.400	1679.000
Less	FINANCIAL EXPENSES		823.300	530.500	374.400
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		439.500	725.900	1304.600
Less/ Add	DEPRECIATION/ AMORTISATION		564.500	424.400	396.400
	PROFIT/ (LOSS) BEFORE TAX		(125.000)	301.500	908.200
Less	TAX		0.000	107.800	202.900
	PROFIT/ (LOSS) AFTER TAX		(125.000)	193.700	705.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3293.100	3099.400	2488.400
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	0.000	0.000	81.100
		Corporate Dividend Tax	0.000	0.000	13.200
	BALANCE CARRIED TO THE B/S		3168.100	3293.100	3099.400
	EARNINGS IN FOREIGN CURRENCY
		Export at FOB value	1085.400	1355.900	1151.400
	TOTAL EARNINGS		1085.400	1355.900	1151.400
	IMPORTS
		Raw Materials	790.400	936.000	1295.600
		Components & Spares	33.600	50.700	26.200
		Capital Goods	13.200	171.000	414.500
	TOTAL IMPORTS		837.200	1157.700	1736.300
	Earnings / (Loss) Per Share (Rs.)		(0.77)	1.19	4.35

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.79)	1.19	4.55
Net Profit Margin (PBT/Sales)	(%)	(0.80)	1.86	5.88
Return on Total Assets (PBT/Total Assets}	(%)	(0.95)	2.55	9.32
Return on Investment (ROI) (PBT/Networth)		(0.03)	0.06	0.19
Debt Equity Ratio (Total Debt /Networth)		0.88	1.07	0.80
Current Ratio (Current Asset/Current Liability)		1.30	1.42	1.89

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	1622.000	1622.000	1622.000
Reserves & Surplus	3125.000	3318.700	3193.700
Net worth	4747.000	4940.700	4815.700
long-term borrowings	2713.800	3484.700	2772.500
Short term borrowings	1102.700	1826.400	1450.200
Total borrowings	3816.500	5311.100	4222.700
Debt/Equity ratio	0.804	1.075	0.877

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	15440.700	16181.800	15693.100
		4.800	(3.020)

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	15440.700	16181.800	15693.100
Profit	705.300	193.700	(125.000)
	4.57%	1.20%	(0.80%)

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Current Maturities of Long Term Debts
Term Loan from Banks	728.500	657.000	475.400
Unsecured Interest free Sales Tax Loan	61.700	65.800	67.000
Total	790.200	722.800	542.400

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	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	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

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Presentation Date:- 04/03/2014

Lodging No.:- MCAST/4348/2010 Filing Date:- 17.02.2010 Reg. No.:- MCA/19/2010 Reg. Date:- 10.03.2010

Petitioner: THE STATE OF MAHARASHTRA Respondent: SUNFLAG IRON AND STEEL COMPANY

LIMITED

Petn. Adv : GOVERNMENT PLEADER (0)

District: NAGPUR

Bench: SINGLE

Status: Pre-Admission

Last Date: 09.06.20144 Stage: FOR ADMISSION

Last Coram: ACCORDING TO SITTING LIST

Act: Constitution of India

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
From Promoters (Interest Free) @	137.500	137.500
Other Loans and Advances #
Interest Free Sales Tax Loan	626.400	688.100
Total	763.900	825.600

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10432530	28/09/2013 *	200,000,000.00	State Bank of Bikaner & Jaipur	Commercial Network Branch, 239, P. D. Mello Road, Near GPO, Fort, Mumbai - 400001, Maharashtra, India	B86608924
2	10413511	28/09/2013 *	200,000,000.00	State Bank of India	The Arcade, 2nd Floor, World Trade Centre, Cuffe Parade, Mumbai - 400005, Maharashtra, India	B86567369
3	10225887	20/08/2010 *	1,500,000,000.00	Indian Bank	Deccan Gymkhana Branch, 759/62, Prabhat Road, Pune - 411004, Maharashtra, India	A94006160
4	10222470	20/08/2010 *	900,000,000.00	Bank of India	Nagpur Corporate Banking Branch, S V Patel Marg, Kingsway, Nagpur - 440001, Maharashtra, India	A93477800
5	10209393	20/08/2010 *	1,000,000,000.00	IDBI Bank Limited	IDBI Tower, 9th Floor, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India	A93440774
6	10112073	12/09/2008 *	600,000,000.00	State Bank of India	Industrial Finance Branch, 'The Arcade' 2nd Floor, World Trade Centre, Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India	A45338423
7	90239709	28/09/2013 *	6,993,300,000.00	State Bank of India	The Arcade, 2nd Floor, World Trade Centre, Cuffe Parade, Mumbai - 400005, Maharashtra, India	B87636999
8	90239530	22/07/2004 *	43,600,000.00	IFCI Ltd	Bank of Baroda Building, Parliamentary Street, New Delhi - 110001, India	-
9	90239504	22/07/2004 *	81,100,000.00	INDUSTRIAL FINANCE CORP. OF INDIA	Bank of Baroda Building, Parliamentary Street, New Delhi - 110001, India	-
10	90239492	28/03/1990	2,000,000.00	STATE BANK OF INDIA	Commercial Branch, Bombay, Maharashtra, India	-

* Date of charge modification

CORPORATE INFORMATION

Subject was incorporated in 1984 and engaged in the business of manufacturing and sale of Special Steel Rolled products.

FINANCE

During the financial year, the net turnover is lower by about 3% as compared to corresponding previous financial year. The Company has ended the financial year with a loss after tax of Rs. 125.000 millions. After taking into account the brought forward profit of Rs. 3293.100 millions, the Company has carried forward an amount of Rs.3168.100 millions.

MARKET SCENARIO

The current market scenario is not favorable to Steel Industry as well as Automobile and Auto component sectors due to general slowdown in Indian and Global economy coupled with policies of Government. However, is continuing to develop new high value grades of alloy steel to cater the needs of domestic as well as international markets.

OPERATIONS

i. During the financial year:

a) The total production for Direct Reduction Plant (I + II) was 118,030 MT as against 142,444 MT of the previous financial year.

b) The total production of 269,152 MT in Steel Melt Shop as against 302,532 MT of the previous financial year.

c) The total production of Rolled products at BSM and ASM was 273,019 MT as against 303,732 MT of the previous financial year. (Previous year production includes outside conversion of 7,624 MT).

d) The total production of Hot Metal / Pig Iron was 189,640 MT as against 205,089 MT of the previous financial year.

e) The total production of Sinter Plant was 340,389 MT as against 339,900 MT of the previous financial year.

f) The total production of Blooming Mill was 30,206 MT including semis. The production for the previous year nil as it was commissioned in the financial year.

ii. The power plant generated 1,601.03 Lacs kWh as compared to 1,714.21 Lacs kWh of the previous financial year.

iii. The total coal production at Belgaon Coal Block is 248,350 as against 159,905 MT of the previous financial year.

PROJECTS

Steel Plant:

The Company has commissioned commercial production of Blooming Mill during the financial year. Additionally, the Company is in the process of installation of Variable Reduction Mill (VRM) which will give close dimension, tolerance and good surface finish. Also, the Company is in process of installation of Bar Conditioning system.

These new projects will add wider product range, value addition and more competitive products and in particular, in achieving economy in the cost of production.

Also, the Company had installed Fume Extraction System in its Steel Melt Shop area as a measure of reducing the pollution.

SUBSIDIARY COMPANIES:

Sunflag Power Limited: Requisite approvals are being sought and underway for implementation of Hydro Power Project at Hanol Tuini in the state of Uttarakhand. Recent disaster in the state of Uttarakhand may delay the progress of implementation of Company’s Hydro Power Project at Hanol Tuini.

Sunflag Special Steels Limited: The management is exploring the business opportunities for the Company.

Khappa Coal Company Private Limited: The Company has initiated various activities well in time and is striving harder to pave its way to success. The activities to be initiated by the Company are almost over and different matters are pending with various departments of Government of Maharashtra and Government of India. The operations of the Khappa and Extension Coal Block will depend on delay in execution of project approvals and clearances, for which regular follow up action is being taken by the Company.

JOINT VENTURE COMPANIES:

Madanpur (North) Coal Company Private Limited: Earlier, the project was declared as 'No Go Area' which was later withdrawn by the Ministry of Environment & Forest, Government of India for the purpose of forest clearances. As such, various approvals / clearances are being sought from the concerned authorities for effective implementation of the Madanpur (North) Coal Project in the state of Chhattisgarh.

C T Mining Private Limited: The Ministry of Coal, Government of India vide its order dated 22nd November 2012 de-allocated the Coal Block allocated to the Joint Venture Company. The said joint venture company together with the promoter companies viz.

M/s Sunflag Iron & Steel Company Limited and M/s Rungta Mines Limited have separately filed Writ Petition/s before the Hon’ble High Court of Jharkhand at Ranchi and got stay order on 12th December 2012. The matter is now sub-judice before the Hon’ble High Court of Jharkhand at Ranchi.

Gujarat State Mining and Resources Corporation Limited: The management efforts are underway for getting allocation of coal block for development of integrated coke oven plant in the state of Gujarat.

MANAGEMENT DISCUSSION AND ANALYSIS

Subject had set up a ‘state of the art’ integrated Steel plant at Warthi, Bhandara Road to produce high quality Special Steel with manufacturing facilities like Sponge Iron Plant, Mini Blast Furnace, Sinter plant, Captive Power Plant and Blooming Mill.

Sunflag Steel has established itself as a major global force. With the modern complex pulsating with world class technology, expert human resources and a commitment to excellence, Sunflag Steel has become a reputed supplier in Flat Bars, Round Bars, Bright Bars and Wire Rods of Alloy Steel, Spring Steel and Stainless Steel and captured better position in these market segments. Sunflag Steel is also embarking on an export thrust and is regularly supplying to various customers in South East Asian, African, Middle East and South American countries.

Further, due to implementation of Blooming Mill, Sunflag Steel can cater to foreign as well as indigenous customers of their needs of Rolled Products for higher sections and thus offering a better product mix. The Blooming Mill will yield better quality of higher size rolled products and Bloom / Ingots due to better compression ratio and more specifically used in the critical applications like crank shaft quality and it can be supplied to Only Equipment Manufacturers (OEM).

GLOBAL ECONOMY

1. Global economic prospects have not much improved again and the road to recovery in the advanced economies will remain bumpy.

2. Though the financial market rally has been helping economic recovery by improving funding conditions and supporting confidence, but growth prospects appear broadly unchanged.

3. In the euro area, better conditions for periphery sovereigns are not yet passing through to companies and households, because banks are still hobbled by poor profitability and low capital, constraining the supply of credit.

4. In advanced economies, real GDP is projected to contract relative to 2012, by about ¼ percent of GDP. Japan, by contrast, will see a fiscal and monetary-stimulus-driven rebound, with real GDP growth reaching 1½ percent.

5. Overall, the annual growth for advanced economies in 2013 is no better than the outcome for 2012.

6. There was a noticeable slowdown in the emerging market and developing economies during 2012. With consumer demand resilient, macroeconomic policy on hold, and exports reviving, most of the economies in Asia and sub- Saharan Africa and many economies in Latin America and the Commonwealth of Independent States are now seeing higher growth.

7. The economies in the Middle East and North Africa continue to struggle with difficult internal transitions. And a couple of economies in South America are facing high inflation and increasing exchange market pressure.

INDIAN ECONOMY

Industrial growth has remained subdued since July 2011 due to weak global demand, weak supply linkages, high import costs and sluggish investment activities.

India is expected to record 6.1 per cent Gross Domestic Product (GDP) growth in the current fiscal 2013-2014. The growth is expected to increase further to 6.7 per cent in 2014-2015, according to the World Bank’s latest India Development Update, a bi-annual report on the Indian economy. While, Prime Minister’s Economic Advisory Panel expects the economic growth to increase to 6.4 per cent in 2013-2014 from 5.0 per cent during 2012-2013 (as compared to 6.2 per cent in 2011-2012), on back of improvement in performance of agriculture and manufacturing sectors. However, the growth rate in the first three quarters of the current fiscal is 5.0 per cent.

Slowdown in Indian economy is largely due to global factors, as also because of domestic factors like tightening of monetary policy, high inflation and slower investment and industrial activities.

The major points of concern during the fiscal 2012-2013 are as follows:

1. Overall growth in the Index of Industrial Production (IIP) was 0.9 per cent as compared to 3.5 per cent in 2011-2012

2. Eight core industries (comprising of crude oil, petroleum refinery products, coal, electricity, cement, steel, natural gas and fertilizers) registered 2.6 per cent growth as compared to 5.2 per cent during 2011-2012

3. Growth in the manufacturing sector disappointed coming in at 1.0 per cent in FY2013, a 15 year low. It has decelerated for the third straight year from 11.3 per cent in FY2010.

INDIAN STEEL, AUTOMOBILE AND AUTO COMPONENT INDUSTRY

In India, the Steel industry plays a significant role in the economic growth. India has acquired a central position in the global steel map with its giant steel mills, acquisition of global scale capacities players, continuous modernisation and up-gradation of old plants, improving energy efficiency and backward integration into global raw material sources. However, the subdued growth of core industries has remained a drag on industrial production, more particularly, the Policy uncertainties in area such as iron ore and coal have adversely affected the output of Steel and Power industries.

Currently, ranked the world’s fourth largest crude steel capacity, India is expected to become second largest producer of crude steel in the world by 2015-2016. India is also the world’s largest producer of sponge iron with a host of coal based units located in its mineral rich states.

Indian crude steel production is estimated to grow at a compounded annual growth rate (CAGR) of around 10.0 percent whereas the finished steel consumption is estimated to grow at a CAGR of around 12.0 per cent during financial years 2012-2014.

The industry has faced with stiff challenges due to rising inflationary pressures and deteriorating global growth conditions. The multiple hikes in interest rates by the central bank also impacted the industry’s growth in rate sensitive key user industries.

Domestic automakers continued with their poor run in April - May 2013 also, broadly on the expected line, due to slowdown in economic activity and negative consumer sentiments. The slowdown continues to be prominent in the medium and heavy commercial vehicle (MHCV), passenger car and two-wheeler segments. The utility vehicle (UV) and light commercial vehicle (LCV) segments, which so far had remained insulated from the slowdown, too have started witnessing demand pressures. Going ahead, it is expected that volume growth to remain sluggish in 1HFY2014 due to high inventory levels and weak consumer sentiments. Nonetheless, they expect volumes to recover in 2HFY2014 on the back of further easing of interest rates, festival demand and also due to favorable base effect.

MATERIAL DEVELOPMENT

Sunflag Steel was not able to maintain its profitability mainly due to marginal rise in selling prices of its products versus abnormal rise in the cost of inputs such as iron ore, pig iron and coke and largely due to overall decelerated global and Indian economic growth.

In order to achieve effective cost reduction and improvement in productivity, activity of total productive maintenance (TPM) continued to be implemented by the Company during the year.

CONTINGENT LIABILITIES

Particulars	31.03.2013 (Rs. in millions)	31.03.2012 (Rs. in millions)
i. Contingent liabilities
a) Unexpired Letter of Credit	1080.100	674.000
b) Guarantees issued by Company's Bankers on behalf of the Company	269.200	266.600
c) Bonds / Under Takings given by the Company under Duty Exemption Scheme to the Custom Authorities	259.800	278.200
d) Bills Discounted	640.000	336.700
e) Excise Duty & Custom Duty against which Company has preferred an Appeal	10.000	10.000
f) Income Tax Liability - Disputed but paid	107.400	132.400
g) Income Tax Liability - Disputed but not paid	73.900	0.000
h) Corporate Guarantee issued to Banks on behalf of Subsidiaries	40.000	40.000
ii. Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for :- Tangible Assets	50.700	376.500

FIXED ASSETS

Ø Freehold Land

Ø Leasehold Land

Ø Buildings

- Factory Building

- Non – Factory Building

- Office Building

- Township

- Welfare Building

- Roads

- Boundary wall and fencing

Ø Railway Siding

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Heavy Vehicles

Ø Light Vehicles

Ø Development of Mines

UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED 31^ST DECEMBER, 2013

(Rs. In Millions)

Sr No.	Particulars (PART I)	Quarter Ended		Nine Months Ended
		31.12.2013	30.09.2013	31.12.2013
1	Income from operations
	(a) Net sales/income from operations (Net of excise duty)	4099.800	382.100	11600.400
	(b) Other operating income	--	--	--
	Total income from operations (net)	4099.800	382.100	11600.400
2	Expenses
	(a) Cost of materials consumed	2354.000	2462.500	6892.600
	(b) Purchases of stock-in-trade	--	--	--
	(c) Changes in inventories of finished goods and work-in-progress	(18.300)	(171.100)	(105.200)
	(d) Employee benefits expense	180.200	181.200	551.500
	(e) Depreciation and amortisation expense	162.700	148.500	459.800
	(f) Other expenses	1161.400	1018.400	3166.000
	Total expenses	3840.000	3639.500	10964.700
3	Profit (Loss) from operations before other income, finance costs and exceptional items (1-2)	259.800	181.500	635.700
4	Other income	3.500	12.100	34.000
5	Profit/(Loss) from ordinary activities before finance costs and exceptional items (3*4)	263.300	193.600	669.700
6	Finance costs	198.000	167.200	538.000
7	Profit (Loss) from ordinary activities after finance costs but before exceptional items (5-6)	65.300	26.400	131.700
8	Exceptional items	--	--	--
9	Profit / (Loss) from ordinary activities before tax (7-8)	65.300	26.400	131.700
10	Tax expense	(13.100)	(5.300)	(26.400)
11	Net Profit/[Loss after tax (9-10)	52.200	21.100	105.300
12	Paid-up equity share capital (Face Value Rs. 10/-)	1622.000	1622.000	1622.000
13	Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year
14	Basic and Diluted Earning per share (Rs.)	0.32	0.13	0.65

PART II
PARTICULARS OF SHAREHOLDING
Public Shareholding
- Number of Shares	737781027	737781027	737781027
- Percentage of Shareholding	45.49%	45.49%	45.49%
Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
- Number of Shares	--	--	--
- Percentage of shares (as a percentage of the total shareholding of Promoters and Promoter Group)	--	--	--
- Percentage of shares (as a percentage of the total capital of the Company)	--	--	--
b) Non-encumbered
- Number of Shares	88416476	88416476	88416476
- Percentage of shares (as a percentage of the total shareholding of Promoters and Promoter Group)	100.00%	100.00%	100.00%
- Percentage of shares (as a percentage of the total capital of the Company)	54.51%	54.51%	54.51%

NOTE:

1. After reviewed by the Audit Committee, the above financial results were approved by the Board of Directors at their meeting held on 28Ih January 2014.

2. The above Financial results are subject to 'Limited Review' by the Statutory Auditors of the Company.

3. The capital employed as on 31"' December 2013 is Rs. 8890.700 millions

4. As there are no taxable profits, the Company has provided current tax expenses as per provisions under MAT

5. As of now, there is no deferred tax liability. However, the same will be reviewed and liability, if any, will be provided before the end of the financial year.

6. The Company is primarily engaged in the business of rolled products and grouped as single segment as per the Accounting Standard (AS) - 17 dealing with segment report issued by ICAI.

7. During the quarter. 4 Investors' complaints were received and all the complaints were attended to by the Company I Share Transfer Agent. At the end of the quarter, no complaints were pending.

8. The figures of previous periods have been re-grouped I re-arranged, wherever necessary

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.60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Don by :	RAS
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		47

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.