MIRA INFORM REPORT

Report Date :

27.06.2014

IDENTIFICATION DETAILS

Name :	SUJANA METAL PRODUCTS LIMITED (w.e.f. 09.11.2001)
Formerly Known As :	SUJANA STEEL LIMITED (w.e.f. 20.04.1992) SUJANA STEELS PRIVATE LIMITED (w.e.f. 30.03.1992) SUJANA STEEL RE-ROLLING INDUSTRIES PRIVATE LIMITED
Registered Office :	8-2-248/1/7/41, Nagarjuna Hills, Panjagutta, Hyderabad – 500 082, Telangana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.05.1988
Com. Reg. No.:	01-008610
Capital Investment / Paid-up Capital :	Rs.1131.091 millions
CIN No.: [Company Identification No.]	L28120TG1988PLC008610
TAN No.: [Tax Deduction & Collection Account No.]	HYDS00083G
PAN No.: [Permanent Account No.]	AACCS8614H
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is primarily engaged in the business of manufacturing and trading of Iron and Steel products.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 29277000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track. Even though the sales turnover of the company has increased, there appears a loss reported by the company during FY 2013. However trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. In view of experienced promoters and long track record of operation, 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

NEWS

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs.2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers with hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities: B+
Rating Explanation	Risk prone credit quality and high risk of default.
Date	February 19, 2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February 19, 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-cooperative

(Tel. No.: 91-40-23351885)

LOCATIONS

Registered/ Corporate Office :	8-2-248/1/7/41, Nagarjuna Hills, Panjagutta, Hyderabad – 500 082, Telangana, India
Tel. No.:	91-40-23351882/ 5/ 7/ 23351887
Fax No.:	91-40-2335 0766 / 23351882 / 23351887/ 23358499
E-Mail :	info@sujana.com info.smpl@sujana.com sujana@hd1vsnl.net.in smplexim@yahoo.co.in
Websites :	www.sujana.com
Works :
Hyderabad :	(i) Survey No.296/7/9, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana, India (ii) Plot No. 4, Survey No.296/7/7, 8 and 11, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana, India (iii) Survey No. 296/7/7, 296/7/8, 296/7/11, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana, India (iv) Survey No. 296/7/7, 8 and 11, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, Telangana, India (v) Survey No.196 and 197, Parigi Road, Elikatta Village, Shadnagar, Mahaboobnagar District, Telangana, India (vi) Cut and Bend Division: Survey No.204, 205 and 206 Elakatta Gram Panchayat, Farooq Nagar Mandal, Mahaboob Nagar District – 509 216, , Telangana, India (vii) Trading Division: Plot No.4, Survey No.296/7/7A, IDA Bollaram, Jinnaram Mandal, Medak District – 502 325, , Telangana, India
Chennai :	(i) Survey No.204/8B, Manjankaranai Village, Chennai, M.G.R. District – 620 502, Tamilnadu, India (ii) Plot No. B-20E, SIPCOT Industrial Complex, Gummidi Pondi, Chennai, Tamilnadu, India
Visakhapatnam :	Sanivada Village, Rajeevnagar, Visakhapatnam – 530 046, Andhra Pradesh, India

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Y.S. Chowdary
Designation :	Chairman
Address:	Plot No.29, Sagar Co-Operative Housing Society, Banjara Hills, Hyderabad – 500 033, Telangana, India
Date of Birth/ Age:	02.06.1961
Qualification :	Master Degree in Engineering with specialization in Machine Tools from P.S.G. College of Technology, Coimbatore
Expertise in specific functional area :	He has distinguished himself as a technocrat entrepreneur and had played a bigger role in establishing the Sujana Group of companies. He has been a constant driving force for fostering higher growth amongst all the group companies. Shri. Y.S. Chowdary has in depth knowledge and a deep insight into the domestic and global steel products industry.
Date of Appointment :	13.02.1992
Directorship in other Indian Public Limited Companies as on 31.03.2013 :	· Sujana Towers Limited · Sujana Universal Industries Limited · Sujana Projects Limited · Sujana Holdings Limited · Sujana Energy Limited · Sujana Power (Gangikondan) Limited · Sujana Power (Tuticorin) Limited · Sujana Power (India) Limited
Name :	Mr. R.K. Birla
Designation :	Managing Director
Address:	120, Gunrock Enclave, Secunderabad – 500 020, Telangana, India
Date of Birth/ Age:	20.01.1952
Qualification :	Bachelor Degree Course in arts and Master of Business Administration (MBA) from BITS Pilani
Experience :	40 Years
Date of Appointment:	05.05.1992
Name :	Mr. G. Srinivasa Raju
Designation :	Director
Address:	Flat No.405, White House, 8-2-6-74/2/2A, Road No.13, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh, India
Date of Birth/ Age:	20.10.1963
Date of Appointment:	18.08.1999
Name :	Mr. S. Hanumantha Rao
Designation :	Director
Address:	8-3-720/85, Salivahana Nagar, Srinagar Colony, Hyderabad – 500 073, Telangana, India
Date of Birth/ Age:	18.07.1951
Qualification :	PHD M Science B Civil Engineering
Date of Appointment:	19.07.1999
Name :	Mr. J. Ramakrishnan
Designation :	Independent and Non-Executive Director
Address:	Jasmin Cottage, H No.8-2-6088 Road No.10, Banjara Hills, Hyderabad – 500 034, Telangana, India
Date of Birth/ age:	20.08.1936
Date of Appointment:	24.07.1995
Name :	Dr. K. Srinivasa Rao
Designation :	Independent and Non-Executive Director
Address:	17/1-38 8/47 (II), Srivakshmi Nagar Colony, Hyderabad – 500 659, Telangana, India
Date of Birth/ Age :	01.08.1934
Qualification :	Master of Arts (Mathmatics) from Sri Venkateswara University
Expertise in specific functional area :	Started his career in July, 1957 as a Probationary Officer in State Bank of India, he was the Superintendent, Foreign Exchange Department, Bangalore Branch. He worked in various capacities such as Accountant, Officer-in-charge, Branch Manager, Deputy Chief Accountant, Chief Manager, General Manager, Finance Director etc., of State Bank of India at various branches across India.
Date of Appointment :	28.01.2000
Directorship in other Indian Public Limited Companies as on 31.03.2013 :	Sujana Universal Industries Limited
Name :	Dr. V. Malakonda Reddy
Designation :	Independent and Non-Executive Director
Address:	Plot No.268, 27, Minhvla Nagar, Banjara Hills, Hyderabad – 500 034, Telangana, India
Date of Birth/ Age:	23.08.1932
Qualification :	PHD M Science B Civil Engineering
Date of Appointment:	05.05.1992
Name :	Mr. Ashok Kumar De, IDBI Nominee
Designation :	Independent and Non-Executive Director
Qualification :	M Engineering
Management Committee :	Mr. Y.S. Chowdary Mr. G. Srinivasa Raju Mr. R.K. Birla Mr. S. Hanumantha Rao
Audit Committee :	Dr. K. Srinivasa Rao Mr. S. Hanumantha Rao Dr. V. Malakonda Reddy Mr. Ashok Kumar De
Share Transfer Committee :	Mr. Y.S. Chowdary Mr. G. Srinivasa Raju Mr. R.K. Birla
Shareholders’ Grievances Committee :	Mr. S. Hanumantha Rao Mr. Y.S. Chowdary Mr. G. Srinivasa Raju
Remuneration Committee :	Dr. K. Srinivasa Rao Mr. J. Ramakrishnan Dr. V. Malakonda Reddy

KEY EXECUTIVES

Name :	Mr. Shaik Ibraheem
Designation :	Company Secretary
Name :	Mr. Ch. Narayana Rao
Designation :	Vice President (Finance and Accounts)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2014

Category of Shareholders	No. of Shares	% of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3200028	1.63
Bodies Corporate	62766585	31.97
Any Others (Specify)	4278142	2.18
Trusts	7	0.00
Non Promoters in Sujana Steels Limited *	4278135	2.18
Sub Total	70244755	35.78
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	70244755	35.78
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	19096577	9.73
Sub Total	19096577	9.73
(2) Non-Institutions
Bodies Corporate	20715120	10.55
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	35491410	18.08
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	49158281	25.04
Any Others (Specify)	1644738	0.84
Clearing Members	254141	0.13
Non Resident Indians	1390597	0.71
Sub Total	107009549	54.50
Total Public shareholding (B)	126106126	64.22
Total (A)+(B)	196350881	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)	196350881	0.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in the business of manufacturing and trading of Iron and Steel products.

Products :

Product Description	ITEM Code
Steel Bars and Rods	72145000
Steel Angles, Shapes and U, I, H, L or T sections	72161000

PRODUCTION STATUS AS ON 31.03.2011):

Particulars	Unit	Installed Capacity	Actual Production
M. S. Casting products	MT	114600	23753
M. S. Rerolling products	MT	907500	246456
Ready Made Steel	MT	90000	9615

*Excludes 28176 MT job work done on behalf of others

Notes:

1. Licensed capacity is not applicable in terms of the Government of India Notification No.477 (E) dated 25^th July 1991

2. As certified by the management and this information is relied upon by the auditors

3. The production of 23753 Mts. of casting products (M.S. Ingots) is transferred to Rerolling Mill Division

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

• Andhra Bank
• Bank of Baroda
• Bank of India
• IDBI Bank Limited
• Indian Overseas Bank
• Indian Bank
• Karnataka Bank Limited, 6-3-1090/A, Bhupal Towers, Rajbhavan Road, Somajiguda, Hyderabad-500082, Andhrra Pradesh, India
• Lakshmi Vilas Bank Limited
• Punjab National Bank
• State Bank of Patiala, MID Corporate Branch, G. Pulla Reddy Building, ABIDC Circle, Hyderabad-500001, Andhra Pradesh, India
• Oriental Bank of Commerce

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from
i) Banks	2506.372	2167.916
ii) Financial institutions	655.688	596.398
Funding of Interest on Term Loan
i) FITL - I	217.303	0.000
ii) FITL - II	203.733	0.000
iii) WCTL	4175.336	0.000
iv) FITL ON WCTL	89.742	0.000
Vehicle loans from
i) Banks	3.583	2.466
ii) Others	0.000	0.000
SHORT TERM BORROWINGS
Loans repayable on demand
From Banks	5156.687	5562.614
Total	13008.444	8329.394

Notes:

LONG TERM BORROWINGS

Term loan from banks viz. Punjab National Bank, Bank of India, Indian Overseas Bank, IDBI Bank and Andhra Bank are secured by first change on all the immovable and movable fixed assets of the company both present and future and second charge on the current assets of the company. Further these loans are secured by personal guarantees and properties of certain directors.

As per CDR Terms of repayment are as follows:

i) Loan taken from Andhra Bank, Rs.509.100 millions, carries an interest rate of 11% p.a. from 1^st October, 2012 till 30^th September, 2014 and thereafter 13% p.a. and is repayable in 96 monthly installments commencing from 1^st October, 2014.

ii) Loan taken from Indian Overseas Bank, Rs.326.000 millions, carries an interest rate of 11% p.a. from 1^st October, 2012 till 30^th September, 2014 and thereafter 13% p.a. and is repayable in 96 monthly installments commencing from 1^st October, 2014.

iii) Loan taken from Bank of India, Rs.546.100 millions, carries an interest rate of 11 % p.a. from 1^st October, 2012 till 30^th September, 2014 and thereafter 13% p.a. and is repayable in 96 monthly installments commencing from 1^st October, 2014.

iv) Loan taken from Punjab National Bank, Rs.908.600 millions, carries an interest rate of 11 % p.a. from 1^st October, 2012 till 30^th September, 2014 and thereafter 13% p.a. and is repayable in 96 monthly installments commencing from 1^st October, 2014.

v) Loan taken from IDBI, Rs.223.800 millions, carries an interest rate of 11 % p.a. from 1^st October, 2012 till 30^th September, 2014 and thereafter 13% p.a. and is repayable in 96 monthly installments commencing from 1^st October, 2014.

vi) Term loan from financial institutions viz. Stressed Assets Stabilization Fund (SASF) secured by first charge on all the immovable and movable fixed assets of the company and second charge on the current assets of the company. As per SASF letter dated 15 March 2013, crystallizes the SASF dues to Rs.660.000 millions and is to be paid in cash carrying ROI @ 9% p.a. payable over 9 1/2 years and balance Rs.180.000 millions to be converted into equity as per SEBI Guidelines. After giving effect to the CDR it was decided that SASF dues as per June, 2008 package should be considered for restructuring at par with other lenders including clearance of interest overdue as on COD (October 1, 2012). As per Bank’s advice Interest and other over dues of Rs.182.000 millions as on COD, is to be cleared for restructuring of dues at CDR.

vii) Overdue interest on Term Loans, SASF and Working Capital was converted to ‘Funding of Interest on Term Loan’ amounting to Rs.674.600 millions, which shall be repayable in 4.5 years after completion of moratorium period i.e. October, 2014.

viii) Working Capital loans were converted to Working Capital Term Loans amounting Rs.417356.600 millions, which shall be repayable in 8 years, after completion of moratorium period i.e. October, 2014.

ix) Vehicle loans from banks and others are secured by hypothecation of the vehicles financed through the loan arrangements and are repayable over a period of 36 months to 60 months.

SHORT TERM BORROWINGS

i) Loans repayable on demand includes an amount of Rs.5107.227 millions (31.03.2012: Rs.5562.614 millions) represents working capital loans from banks are inter alia secured by way of parri passu first charge on current assets and parri passu second charge on fixed assets both present and future. Further these loans are secured by personal guarantee and properties of certain directors.

ii) Loans repayable on demand also includes an amount of Rs.49.416 millions taken from Punjab National Bank which is secured by pledge of fixed deposit amounting to Rs.69.600 millions.

Banking Relations :

--

Statutory Auditors :

Name :

CRK and Associates

Chartered Accountants

Address :

Hyderabad, Telangana, India

Cost Auditors :

Name :

Nageswara Rao and Company

Cost Accountants,

Address :

Secunderabad

Subsidiaries :

Subsidiaries held directly	Country of Incorporation	Percentage of ownership interest
Glade Steel Private Limited	India	51.15%
Alpha Ventures Limited	Cayman Islands	100%
Asian Tide Enterprises Limited	Hong Kong	100%
Subsidiaries held indirectly
Optimix Enterprises Limited	Mauritius	100%

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
310000000	Equity Shares	Rs.5/- each	Rs.1550.000 millions
4500000	Preference Shares	Rs.100/- each	Rs.450.000 millions
	Total		Rs.2000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
196350881	Equity Shares	Rs.5/- each	Rs.981.754 millions
1493365	1% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.149.337 millions
	Total		Rs.1131.091 millions

Notes:

i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting year/period

Particulars	As at 31^st March, 2013
	No. of Shares	Amount (Rs. in millions)
a) Equity (including shares represented by underlying GDRs)
Shares outstanding at the beginning of the year/period	196350881	981.754
Shares issued during the year/period	--	--
Shares bought back during the year/ period	--	--
Shares outstanding at the end of the year/ period	196350881	981.754
b) Cumulative Redeemable Preference Shares
Shares outstanding at the beginning of the year/period	1493365	149.337
Shares Issued during the year/period	--	--
Shares redeemed during the year/period	--	--
Shares outstanding at the end of the year/period	1493365	149.337

ii) Details of shares held by each shareholder holding more than 5% shares:

Name of Shareholder	As at 31^st March, 2013
	No. of Shares held	% held
a) Equity shares of Rs.5 each fully paid
Yalamanchili Finance & Trading Private Limited	26766461	13.63
Foster Infin and Trading Private Limited	25000000	12.73
Deutsche Bank Trust Company Americas	12946000	6.59
Stressed Assets Stabilisation Fund	12759682	6.50
Sujana Holdings Limited	10000000	5.09
b) Cumulative Redeemable Preference Shares of Rs.100 each fully paid
IDBI Bank Limited	1493365	100.00

iii) 13,140,489 Equity shares issued as fully paid up to the shareholders of erstwhile Sujana Steels Limited on its amalgamation with the company, for consideration other than cash in the last five years immediately preceding the balance sheet date.

iv) The company has only one class of shares referred to as equity shares having a par value of Rs.5/-. Each holder of equity shares is entitled to one vote per share held (other than the shares represented by underlying GDR’s which do not carrying a voting right).

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

12,946,000 (31.03.2013:12,946,000) equity shares represent the shares underlying outstanding Global Depository Receipts (GDRs). Each GDR represents 10 underlying equity shares.

v) Redemption of Cumulative Redeemable Preference Shares (CRPS)

1,493,365 1% of Cumulative Redeemable Preference Shares of Rs.100 each aggregating to Rs.149.337 millions is redeemable in 12 quarterly installments co-terminus with principal payment commencing from October 01, 2013 and ending July 01, 2016. CRPS carry cumulative dividend @ 1% per annum. The company declares and pays dividend in Indian rupees each. Each holder of CRPS is entitled to one vote per share only on resolutions placed before the company which directly effect the rights attached to CRPS

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	1131.091	1131.091	1131.091
(b) Reserves & Surplus	6188.205	6392.544	5907.371
(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)	7319.296	7523.635	7038.462
(3) Non-Current Liabilities
(a) Long-term borrowings	7851.757	2766.780	3087.535
(b) Deferred tax liabilities (Net)	614.913	616.914	618.321
(c) Other long term liabilities	9.171	870.663	8.521
(d) Long-term provisions	24.297	20.711	21.655
Total Non-current Liabilities (3)	8500.138	4275.068	3736.032
(4) Current Liabilities
(a) Short term borrowings	5166.687	5572.614	6114.658
(b) Trade payables	2672.273	4513.434	4016.756
(c) Other current liabilities	736.410	1943.953	1084.563
(d) Short-term provisions	220.633	256.683	273.436
Total Current Liabilities (4)	8796.003	12286.684	11489.413
TOTAL	24615.437	24085.387	22263.907
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4699.183	4850.732	4323.185
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	545.619	616.801	78.943
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1422.940	1422.939	68.119
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	732.316	644.091	3468.238
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	7400.058	7534.563	7938.485
(2) Current assets
(a) Current investments	0.382	0.421	7.992
(b) Inventories	1580.349	1624.255	1018.520
(c) Trade receivables	13267.425	10786.151	8630.293
(d) Cash and cash equivalents	221.815	642.620	717.759
(e) Short-term loans and advances	2125.281	3471.710	3944.117
(f) Other current assets	20.127	25.667	6.741
Total Current Assets	17215.379	16550.824	14325.422
TOTAL	24615.437	24085.387	22263.907

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations (net)	36498.548	35383.635	42540.018
		Other Income	154.159	233.266	89.865
		TOTAL (A)	36652.707	35616.901	42629.883
Less	EXPENSES
		Cost of materials consumed	7081.682	6667.910	6612.682
		Purchase of Traded Stock	26428.603	25732.973	30060.945
		Change in inventories of finished goods, work in progress and stock- in-trade	(92.158)	(456.751)	995.079
		Employee benefit expenses	239.994	234.204	297.198
		Other expenses	976.924	993.075	1360.116
		TOTAL (B)	34635.045	33171.411	39326.020
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2017.662	2445.490	3303.863
Less	FINANCIAL EXPENSES (D)		1809.973	1722.830	1943.077
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		207.689	722.660	1360.786
Less/ Add	DEPRECIATION/ AMORTISATION (F)		412.301	469.462	706.995
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(204.612)	253.198	653.791
Less	TAX (H)		(2.001)	44.898	266.922
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(202.611)	208.300	386.869
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	6858.603	2701.691	5089.484
		Others	0.000	0.000	72.674
	TOTAL EARNINGS		6858.603	2701.691	5162.158
	IMPORTS
		Raw Materials including stock in trade	1053.483	2968.933	4987.578
		Capital Goods	0.000	0.000	0.259
		Others	0.000	0.000	63.335
	TOTAL IMPORTS		1053.483	2968.933	5051.172
	Earnings/ (Loss) Per Share (Rs.)
	- Basic		(1.04)	1.05	2.24
	- Diluted		(1.04)	1.05	2.15

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(0.55)	0.58	0.91
Net Profit Margin (PBT/Sales)	(%)	(0.56)	0.72	1.54
Return on Total Assets (PBT/Total Assets}	(%)	(0.90)	1.15	2.96
Return on Investment (ROI) (PBT/Networth)		(0.03)	0.03	0.09
Debt Equity Ratio (Total Debt/Networth)		1.78	1.11	1.31
Current Ratio (Current Asset/Current Liability)		1.96	1.35	1.25

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	1131.091	1131.091	1131.091
Reserves & Surplus	5907.371	6392.544	6188.205
Share Application money pending allotment	0.000	0.000	0.000
Net worth	7038.462	7523.635	7319.296
Long-term borrowings	3087.535	2766.780	7851.757
Short term borrowings	6114.658	5572.614	5166.687
Total borrowings	9202.193	8339.394	13018.444
Debt/Equity ratio	1.307	1.108	1.779

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (net)	42540.018	35383.635	36498.548
		(16.823)	3.151

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations (net)	42540.018	35383.635	36498.548
Profit	386.869	208.300	(202.611)
	0.91%	0.59%	(0.56%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

CP 175 / 2013

CPSR 4864 / 2013

CASE IS:PENDING

PETITIONER		RESPONDENT
STANDARD BANK (MAURITIUS) LIMITED	VS	SUJANA METAL PRODUCTS LIMITED
PET.ADV. : PAVAN KUMAR		RESP.ADV. : RAJU
SUBJECT: COMPANY APPLICATION		DISTRICT:  HYDERABAD

FILING DATE:	POSTING STAGE :  FOR ADMISSION AND HEARING
REG. DATE    :	LISTING DATE :	STATUS   :  NOTICES

HON'BLE JUDGE(S):

C.V.NAGARJUNA REDDY

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10437144	01/10/2013 *	2,262,100,000.00	PUNJAB NATIONAL BANK	MAKER TOWERS E, GROUND FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B89591317
2	10437145	01/10/2013 *	400,000,000.00	PUNJAB NATIONAL BANK	MAKER TOWERS E, GROUND FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B89592125
3	10437192	01/10/2013 *	4,918,700,000.00	PUNJAB NATIONAL BANK	MAKER TOWERS E, GROUND FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B89591689
4	10399112	12/01/2013	400,000,000.00	LAKSHMI VILAS BANK LIMITED	CHENNAI MAIN BRANCH, NO.275,THAMBU CHETTY STREET, CHENNAI, TAMILNADU - 600001, INDIA	B66498056
5	10370071	19/06/2012	320,000,000.00	INDIAN OVERSEAS BANK	762, IOB BUILDINGS, ANNASALAI, CHENNAI, TAMILNADU - 600002, INDIA	B45520491
6	10297932	03/01/2012 *	1,000,000,000.00	ORIENTAL BANK OF COMMERCE	769, SPENCER PLAZA, ANNA SALAI, CHENNAI, TAMIL NA  DU - 600002, INDIA	B28990125
7	10238591	01/10/2013 *	3,407,900,000.00	PUNJAB NATIONAL BANK	MAKER TOWERS E, GROUND FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B89589410
8	10199987	01/10/2013 *	8,228,000,000.00	PUNJAB NATIONAL BANK	MAKER TOWERS E, GROUND FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B89588651
9	10170459	08/04/2011 *	340,000,000.00	KARNATAKA BANK LIMITED	RAJBHAVAN ROAD, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	B13712740
10	10103325	22/02/2008	120,000,000.00	SBI FACTORS AND COMMERCIAL SERVICES PRIVATE LIMITE  D	903-906, RAHEJA CHAMBERS, 9TH FLOOR, FREE PRESS  JOURNAL MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA  - 400021, INDIA	A38770301
11	10036374	19/02/2007	200,000,000.00	KARNATAKA BANK LIMITED	6-3-1090/A, BHUPAL TOWERS, RAJ BHAVAN ROAD, HYDERABAD, ANDHRA PRADESH - 500016, INDIA	A10444818
12	80032176	28/01/2005	50,000,000.00	BANK OF BARODA	CHENNAI MAIN BRANCH, 28, RAJAJI SALAI, CHENNAI, TAMILNADU - 600001, INDIA	-
13	90262491	03/07/2004	45,000,000.00	BANK OF BARODA	CHENNAI MAIN BRANCH, 28 RAJAJI SALAI, CHENNAI, TAMILNADU, INDIA	-
14	90262043	24/03/2014 *	200,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06052054
15	90292903	24/03/2014 *	350,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06052245
16	80032054	24/03/2014 *	100,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06049449
17	80032055	18/02/2000 *	220,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, BOMBAY, MAHARASHTRA - 400005, INDIA	-
18	80032056	24/03/2014 *	107,457,960.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06049845
19	90261671	24/03/2014 *	190,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06051023
20	90261619	16/03/1998	25,000,000.00	BANK OF BROD	RAJJI SALAI, CHENNAI, TAMILNADU, INDIA	-
21	90261552	25/03/1998 *	130,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA	-
22	90261498	07/05/1997	325,125,000.00	STATE BANK OF HYDERABAD	IFB BRANCH, HYDERABAD, ANDHRA PRADESH, INDIA	-
23	90261483	28/03/1997	50,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA	-
24	90292460	24/03/2014 *	180,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06050389
25	90261474	24/03/2014 *	50,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06049167
26	90261409	19/08/1996	20,000,000.00	ANDHRA PREDESH INDUSTRIAL DEVELOPMENT CORPORATION  LIMITED	PARISHRMA BHAWAN, FATEH MAIDAN ROA, HYDERABAD, ANDHRA PRADESH, INDIA	-
27	90261405	31/07/1996	60,000,000.00	BANK OF MADURA LIMITED	K.J. MARKET, HYDERABAD, ANDHRA PRADESH, INDIA	-
28	90261378	24/03/2014 *	30,000,000.00	IDBI BANK LIMITED	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA -  400005, INDIA	C06048110
29	90261324	29/12/1995	7,500,000.00	MODAL FINANCIAL CORPORATION LIMITED	MODAL HOUSE, PANJGUTTA, HYDERABAD, ANDHRA PRADESH, INDIA	-
30	90261299	09/11/1989 *	60,000,000.00	STTAE BANK OF INDIA	BALANAGAR BRANCH, HYDERABD, ANDHRA PRADESH, INDIA	-
31	90261253	22/04/1996 *	42,500,000.00	THE SOUTH INDIAN BANK LIMITED	64; ARHENNIANN STREET, MADRAS, TAMILNADU, INDIA	-
32	90261151	27/10/1994 *	5,000,000.00	BANK OF BARODA	MSAB TNK, HYDERABAD, ANDHRA PRADESH, INDIA	-
33	90261137	24/09/1994	224,000.00	CITI BANK N.A	ANNA SALAI, MADRAS, TAMIL NADU, INDIA	-
34	90261085	21/08/1998 *	13,000,000.00	INDUSTRIL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, HYDERABAD, ANDHRA PRADESH, INDIA	-
35	90261077	25/03/1998 *	13,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA	-
36	90261054	07/01/1994	20,000,000.00	BANK OF BAROD	MASAB TANK ROAD, HYDERABD, ANDHRA PRADESH, INDIA	-
37	90261028	17/05/1994 *	5,000,000.00	BANK OF BARODA	MASAD TANK BARNCH, HYDERABAD, ANDHRA PRADESH, INDIA	-
38	90261013	17/06/1993	5,000,000.00	BANK OF BARODA	MASAD TANK BARNCH, HYDERABAD, ANDHRA PRADESH, INDIA	-
39	90261002	26/04/1993	17,500,000.00	BANK OF BAROD	MASAB TANK ROAD, HYDERABD, ANDHRA PRADESH, INDIA	-
40	90260999	17/05/1994 *	15,000,000.00	BANK OF BARODA	MASAD TANK BARNCH, HYDERABAD, ANDHRA PRADESH, INDI  A	-
41	90260975	26/04/1993 *	3,000,000.00	BANK OF BAROD	MASAB TANK ROAD, HYDERABD, ANDHRA PRADESH, INDIA	-
42	90260967	14/10/1992	2,900,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARDE, MUMBAI, MAHARASHTRA, INDIA	-
43	90260706	09/11/1989 *	7,400,000.00	STTAE BANK OF INDIA	BALANAGAR BRANCH, HYDERABD, ANDHRA PRADESH, INDIA	-

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans repayable on demand
From Others (Unsecured loans from others in the previous period include certain trade payables to the extent of Rs.10.000 millions, have been converted into unsecured loans after obtaining the consent from the payees. These unsecured loans are repayable within a period of one and half year and carries an interest at the rate of 17% per annum.)	10.000	10.000
Total	10.000	10.000

CORPORATE INFORMATION

Subject was incorporated in 02 May 1988 under the name of Sujana Steel Re-rolling Industries Private Limited. The name of the company was changed to Sujana Steels Private Limited on 30 March 1992. The company was converted into public limited company on 20 April 1992. The company further changed its name as Sujana Metal Products Limited w.e.f. 09 November 2001. The Company was promoted by Sri Y.S. Chowdary, his associates and relatives.

The company was incorporated with an object to manufacture of steel re-rolled products SMPL is engaged in the business of manufacturing and marketing value added steel products. Subject is categorized as a secondary steel producer in the Industry.

Subject is currently engaged in the business of Manufacture and trading of steel products like Thermo Mechanically Treated (TMT) bars in different sizes, Structural steels like Ms Angles, Ms Squares, Ms Beams and Ms Channels etc. and smart steel of varying shapes and dimensions for the construction and infrastructure sector.”

REVIEW OF OPERATIONS:

During the financial year 2012-13, the Company has incurred a net loss of Rs.202.611 millions. The Management on its part filed an application with CDR Cell, Mumbai for restructuring of its debts under Corporate Debt Restructuring (CDR) Scheme so that it can help the Company to improve its financial position so as to improve the service to the lenders in future and also modernize, expand and diversify in order to come out of problem.

CDR package has been approved by the CDR Empowered Group, Mumbai vide its letter dated: 28.03.2013 and various requirements are being complied with respect to the said corporate debt restructuring.

PROSPECTS:

The Company had made a reference to the Corporate Debt Restructuring (CDR) cell constituted by Reserve Bank of India for restructuring of its financial debt. The CDR Cell positively considered the request of the Company and has approved the debt restructuring proposal given by the Company. For the purpose of implementation of the approved package as also to comply with the post-implementation requirements, Punjab National Bank the lead consortium bank of the Company has been appointed as Monitoring Institution (MI) by the CDR Cell. To facilitate the process of monitoring of progress of sanction and implementation of the approved package by respective lenders and to revive the performance of the Company/ restructuring package on a continuous basis, a Monitoring Committee (MC), comprising of representatives of Punjab National Bank, State Bank of Patiala, Bank of Baroda and Bank of India has also been constituted.

With the restructuring of its debts and implementation of the CDR package as approved by the CDR Cell, the Company believes that it will gradually be able to progress in its operations towards profitability. The company has been extremely fortunate to have full support of its employees during this period and all efforts are being made to garner support from the customers of the Company.

SCHEME OF AMALGAMATION:

Board of Directors of the Company at their meeting held on 12th November, 2010 approved the Scheme of amalgamation between (1) Lakshmi Gayatri Industries Private Limited, (2) Glade Steel Private Limited, (3) Sri Ganga Steel Enterprises Private Limited and (4) Topaz Steel India Limited with subject w.e.f: 01.10.2009. The Amalgamation would result in synergy of operations and also reduce the overhead and administrative costs substantially, by combining these units it will meet the competition in the domestic and international market and also helps to meet the international standards and it will also reduce the inventory levels which will result in significant savings in procurement of inventory and carrying costs of the inventory.

Necessary approvals from the Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE) and Madras Stock Exchange Limited (MSE) have been obtained vide their Letter Nos. DCS/ AMAL/NTP/24(f)/983/2010-11 dated: 24^th December, 2010, NSE/LIST/153641-Z dated: 14^th December, 2010 and MSE/LD/ PSK/738/593/10 dated: 16^th December, 2010 respectively.

The Company Law Board, Southern Region Bench, Chennai has approved the shifting of registered office of M/s Sriganga Steel Enterprises Private Limited (Third Transferor Company) from the state of Tamilnadu to Andhra Pradesh on 17th February, 2011.

By an order dated: 28.03.2011, the Hon’ble High Court of Andhra Pradesh, Hyderabad has directed that meetings of the Shareholders and Secured Creditors of the Company be held at Anjuman Hall, Hotel Taj Banjara, Road No.1, Banjara Hills, Hyderabad-500034 on Thursday the 28th day of April, 2011 at 2.30 P.M. and 3.30 P.M respectively for the purpose of considering and approving the proposed scheme of amalgamation.

On 28.04.2011, Shareholders and Secured creditors of the Company passed the resolution for approving the Scheme of Amalgamation with requisite majority. The petition under Section 394 read with Section 391(2) of the Companies Act, 1956 for sanction of Scheme of amalgamation was filed with the Hon’ble High Court of Judicature at Andhra Pradesh on 15.06.2011 and admitted on 15.07.2011. As on the date of this report, the Company has not yet received the order from Hon’ble High Court of Judicature at Andhra Pradesh.

SUBSIDIARIES OF THE COMPANY:

Details of the subsidiaries are given below:

Indian Subsidiaries

(a) Glade Steel Private Limited

Glade Steel Private Limited, Hyderabad, is a subsidiary of the Company. It is engaged in the business of manufacturing, distributing, supplying, selling and other wise dispose of Rounds, Flats, Squares, Angles, Channels, Girders and Allied Products with installed capacity of 75,000 MT/per annum of re-rolling and 50,000 MT/per annum of MS ingots.

Overseas Subsidiaries

(a) Alpha Ventures Limited

Alpha Ventures Limited is a Wholly Owned Subsidiary Company incorporated on 6 March 2007 in Cayman Islands. Alpha Ventures Limited has been promoted to carry out any object not prohibited by the Companies Law (2004) Revision, or as the same may be revised from time to time, or any other law of the Cayman Islands. As per the law prevailing in Cayman Islands, Financial Statements of Alpha Venture Limited are not required to be audited.

(b) Asian Tide Enterprises Limited

Asian Tide Enterprises Limited, is a Wholly Owned Subsidiary Company. It was incorporated on 3 July 2007 in Hong Kong for carrying on the business of trading of goods and services with accent on procuring raw materials (in bulk) for manufacturing activities of the Company (melting scarp for its rolling division) and sale surplus in the market.

(c) Optimix Enterprises Limited

Optimix Enterprises Limited, is a Wholly Owned Subsidiary of Asian Tide Enterprises Limited, Hong Kong and step down subsidiary of the Company. It was incorporated on 22nd August, 2011 in Mauritus for carrying on the business or businesses which are not prohibited under the laws for the time being in force in the Republic of Mauritius. This includes (inter alia) to engage in the business of all forms of investments including but not limited to venture capital and private equity investments whether directly, indirectly through any special purpose vehicles or otherwise.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Developments:

The Indian steel sector, one of the core industries in the country, is about a century old, with Tata Iron and Steel Co (Tata Steel) being the first integrated steel plant to be established in 1907. India is currently the world's fourth largest producer of crude steel and is expected to move ahead of its competitors (the US and Japan) in a couple of years.

Steel industry mainly derives its demand from other sectors like infrastructure, aviation, engineering, construction, automobile, pipes and tubes etc. Thus its intense integration with other important segments makes it a strategic focus area for the Government as well.

India Ratings and Research (Ind-Ra) anticipates that growth in Indian steel sector will gain momentum in 2014 on the back of growth in other economic segments. The World Steel Association (WSA) projects that local steel demand in India would increase by 5.9 per cent and 7 per cent in 2013 and 2014 respectively.

Market Size

Latest figures by WSA has revealed that India's steel production increased by 0.9 percent to 6.45 million tonne (MT) in June 2013, as against 6.39 MT in June 2012. Moreover, the data showed that India fared better than rest of the world in terms of average output for the first six months of 2013.

India’s steel production grew by 2.5 per cent to 39.63 MT in the six month period January- June 2013 as against 38.68 MT in the same period in 2012. During the same period, world crude steel production was 789.8 MT, recording an increase of 2 per cent.

Road Ahead

The market of Steel Service Centres (SSC) is at a very nascent stage in India. It is expected to grow at a compound annual growth rate (CAGR) of 18 per cent during FY 2017-18 as steel makers expand capacities and more and more customers look for customised products.

Domestic steel market is into an evolutionary stage wherein it is shifting from simply selling steel to selling steel solutions; thanks to growth in the automobile and white goods segments, and entry of multinational companies (MNCs). Owing to immense competition in the automotive industry, white goods, fabricators and other end-use segments (infrastructure, construction, electrical, pipes and tubes, and engineering equipment-related industries), and the need of curbing inventory cost, executing strategies like ‘just-in-time (JIT)’ is likely to boost this service center concept to grow rapidly in the next 5-10 years.

OPPORTUNITIES, THREATS AND FUTURE OUTLOOK:

The Company will continue to maintain and grow its presence in the Export Markets while retaining its focus on value added products in Domestic Market. The Company is ready to cater to customer’s stringent specifications and demands which will ultimately improve the bottom-line. The overall presence in the Conventional, Construction and Infrastructure Segments will continue.

The domestic flat steel consumption in the relevant business segments is estimated to grow at 6%-8%. The need, however, for value added and niche products are likely to surge and have been identified as major focus area for the Company. Global steel consumption is expected to rise by1.3%. Non-tariff barriers (like Anti-Dumping Duty on low priced, low quality suppliers) introduced recently by some of the emerging economies is expected to open additional markets and opportunities for the Company to increase its market share in international business.

Discussion on Financial Performance with respect to operational performance:

They have achieved a growth of 3.56% in annual revenues, recording Rs.37408.155 millions for the year 2012-13 as against 36122.377 millions in the previous financial year 2011-12. The net loss for the year Rs.202.611 millions as against net profit of Rs.208.302 millions in the previous financial year 2011-12.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
i) Claims against the Company not acknowledged as debts in respect of:
Excise Duty	211.687	182.336
Custom Duty	79.767	52.337
TNVAT/APGST/CST	217.939	197.939
Income Tax (Net of liability as per return)	151.725	103.707
FERA	63.000	63.000
ii) Guarantees
Corporate Guarantees furnished on behalf of Sujana Universal Industries Limited	8141.000	8141.000
Joint Corporate Guarantee executed by the Company along with Sujana Universal Industries Limited and Sujana Towers Limited in favour of Alpha Ventures Limited and Sujana Holdings Limited, Wholly Owned Subsidiary of the Company and Sujana Universal Industries Limited respectively [ USD Nil (31.03.2012:Nil)]	--	--
Corporate guarantee furnished on behalf of Optimix Enterprises Limited (USD 75 lakhs)	408.750	311.797

STATEMENT OF UN-AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST DECEMBER, 2013

(Rs. in millions)

Particulars	Unaudited
	Quarter Ended		Nine Months Period Ended
	31.12.2013	30.09.2013	31.12.2013
PART-I
1. Income from operations
(a) Net sales/income from operations (net of excise duty)	7639.087	8392.001	21023.736
(b) Other Operating Income	9.995	14.709	44.185
Total income from operations (net)	7649.082	8406.710	21067.921
2. Expenses
a) Cost of materials	6635.892	8624.376	20271.213
b) Changes in inventories of finished goods, work in process and stock-in-trade	281.042	(929.322)	(1132.397)
c) Employee benefits expense	57.799	57.204	169.998
d) Depreciation and amortisation expense	99.562	93.841	282.923
e) Other expenses	194.496	275.359	668.155
Total expenses	7268.791	8121.458	20259.892
3. Profit from Operations before Other Income, Interest and Exceptional Items (1-2)	380.291	285.252	808.029
4. Other Income	0.488	97.473	229.434
5. Profit from ordinary activities before finance costs and exceptional items (3+4)	380.779	382.725	1037.463
6. Finance costs	472.826	428.115	1308.750
7. Profit from ordinary activities after finance costs but before exceptional items (5-6)	(92.047)	(45.390)	(271.287)
8. Exceptional items	--	--	--
9. Profit from ordinary activities before tax (7+8)	(92.047)	(45.390)	(271.287)
10. Tax expense	(18.384)	45.652	26.947
11. Net Profit/(Loss) from ordinary activities after tax (9-10)	(73.663)	(91.042)	(298.234)
12. Extraordinary items	--	--	--
13. Net Profit/(Loss) for the period (11-12)	(73.663)	(91.042)	(298.234)
14. Paid-up equity share capital (Face value - Rs.5 per equity share)	981.754	981.754	981.754
15. Reserves excluding revaluation reserve as per balance sheet of previous accounting year	--	--	--
16. Earnings per share (of Rs.5 each) (before extraordinary items) ( not annualised)
- Basic (Rs.)	(0.377)	(0.466)	(1.524)
- Diluted (Rs.)	(0.377)	(0.466)	(1.524)
17. Earnings per share (of Rs.5 each) (after extraordinary items) ( not annualised)
- Basic (Rs.)	(0.377)	(0.466)	(1.524)
- Diluted (Rs.)	(0.377)	(0.466)	(1.524)
PART-II
A. Particulars of Shareholding
1. Public shareholding
- No. of shares	126106126	126106126	126106126
- Percentage of shareholding	64.22	64.22	64.22
2. Promoters And Promoter Group Shareholding
a) Pledged/ Encumbered
- Number of Shares	70244748	70244748	70244748
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
- Percentage of shares (as a % of the total share capital of the company)	35.78	35.78	35.78
b) Non Encumbered
- Number of Shares	7	7	7
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	--	--	--
- Percentage of shares (as a % of the total share capital of the company)	--	--	--

Particulars	Quarter ended 31.12.2013
B. Investor complaints
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

Notes:

1. The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 12^th February 2014.

2. The company is primarily engaged in the manufacturing and trading of steel and steel products business, which in the context of Accounting Standard 17, is considered the only significant business segment.

3. The Company has three subsidiaries a) Glade Steel Private Limited b) Alpha Ventures Limited, c) Asian Tide Enterprises Limited.

4. Scheme of Amalgamation was withdrawn by the company and the order on withdrawal of the company’s petition was issued by the Hon’ble High Court, AP on 17.12.2013

5. Figures of the previous quarters/period have been regrouped and reclassified wherever necessary.

FIXED ASSETS:

Tangible Assets

· Land-Freehold

· Buildings

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Computers

Intangible Assets

· Goodwill

· Computer Software

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 records 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.60.16
UK Pound	1	Rs.102.23
Euro	1	Rs.82.04

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--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		31

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.