MIRA INFORM REPORT

Report Date :

14.03.2014

IDENTIFICATION DETAILS

Name :	ISMT LIMITED
Registered Office :	Lunkad Towers, Viman Nagar, Pune – 411014, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.09.1999
Com. Reg. No.:	11-016417
Capital Investment / Paid-up Capital :	Rs.732.500 Millions
CIN No.: [Company Identification No.]	L27109PN1999PLC016417
TAN No.: [Tax Deduction & Collection Account No.]	PNEI00099B
PAN No.: [Permanent Account No.]	AAACJ9917A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Subject is engaged in manufacturing of Seamless Tubes and Engineering Steels.
No. of Employees :	2416 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 19590000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is a well-established and reputed company having fine track record. The company has seen a dip in its sales revenue and has reported a huge loss during 2013. However, the financial position seems to be decent marked by healthy networth. However, trade relations are fair. Business is active. Payment terms are reported as usually correct. Company the 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.

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	3/5
Rating Explanation	Fundamentals are good
Date	23.03.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED

Management Non Co-Operative (91-20-66024901)

LOCATIONS

Registered Office/ Corporate Office :	Lunkad Towers, Viman Nagar, Pune – 411014, Maharashtra, India
Tel. No.:	91-20-41434100/ 01/ 66024901/ 02/ 03/ 04
Fax No.:	91-20-26630779
E-Mail :	legal@ismt.co.in dbhansali@ismt.co.in secretarial@ismt.co.in
Website :	http://www.ismt.co.in http://www.ismt.com
Location :	Rented
Factory 1 (Tube) :	MIDC Industrial Area, Ahmednagar – 414111, Maharashtra, India
Tel. No.:	91-241-2777960/ 2777845/ 2777946
Fax No.:	91-241-2777363
Factory 2 (Tube):	MIDC Industrial Area, Baramati – 413133, India
Tel. No.:	91-2112-243861/65
Fax No.:	91-2112-243873
Factory 3 (Tube):	Structo Hydraulics AB Storfors, Swedan
Factory 4 (Steel) :	Jejuri – Morgaon Road, Jejuri – 412303, Maharashtra, India
Tel. No.:	91-2115-253335
Factory 5 (Power) :	Village Kurla, Warora, Chandrapur – 422910, Maharashtra, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. S C Gupta
Designation :	Chairman
Name :	Mr. B R Taneja
Designation :	Director
Name :	Mr. A K Jain
Designation :	Director (up to April 12, 2013)
Name :	Mr. O P Kakkar
Designation :	Director (w. e. f. November 08, 2012)
Name :	Mr. J P Sureka
Designation :	Director
Name :	Mr. K K Rai
Designation :	Director
Name :	Mr. Vinod Sethi
Designation :	Director
Name :	Mr. V Gourishankar
Designation :	Nominee Director of IDBI Bank Limited (upto June 05, 2012)
Name :	Mr. Suresh Khatanhar
Designation :	Nominee Director of IDBI Bank Limited (w. e. f. June 06, 2012)

KEY EXECUTIVES

Name :	Mr. Salil Taneja
Designation :	Chief Executive Officer
Name :	Mr. Rajiv Goel
Designation :	Chief Financial Officer
Name :	Mr. Nirmal Chandra
Designation :	President (Project and Product Development) up to November 30, 2012
Name :	Mr. Nilesh Jain
Designation :	Company Secretary (w. e. f. May 28, 2012)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2013

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	5008513	3.42
Bodies Corporate	71362258	48.71
Sub Total	76370771	52.13
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	76370771	52.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	75395	0.05
Financial Institutions / Banks	1993848	1.36
Foreign Institutional Investors	5160926	3.52
Sub Total	7230169	4.94
(2) Non-Institutions
Bodies Corporate	9528880	6.50
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	29031582	19.82
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	13826400	9.44
Any Others (Specify)	10513581	7.18
Non Resident Indians	3819440	2.61
Trusts	6694141	4.57
Sub Total	62900443	42.94
Total Public shareholding (B)	70130612	47.87
Total (A)+(B)	146501383	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)	146501383	0.00

BUSINESS DETAILS

Line of Business :

The Subject is engaged in manufacturing of Seamless Tubes and Engineering Steels.

GENERAL INFORMATION

No. of Employees :

2416 (Approximately)

Bankers :

· Andhra Bank

· Axis Bank

· Bank of Baroda

· Bank of India

· Bank of Maharashtra

· Central Bank of India

· Export - Import Bank of India

· ICICI Bank Limited

· IDBI Bank Limited

· IKB Deutsche Industrie bank AG

· Indian Overseas Bank

· State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Term Loans from Banks
Rupee Loans	633.200	1318.600
Foreign Currency Loans	6091.000	6484.400
Long Term maturities of finance lease Obligations	0.300	0.500
SHORT TERM BORROWINGS
Loans Repayable on Demand
Working Capital Borrowings From Banks
Rupee Loans	1918.200	382.000
Foreign Currency Loans	800.200	768.800
Total	9442.900	8954.300

Notes:

Security

i) Term Loans of Rs. 1303.000 Millions (including current maturities of Rs. 278.300 Millions) (Previous Year Rs. 1421.900 Millions including current maturities of Rs. 367.800 Millions) are stipulated to be secured by a first charge ranking pari passu on the Company’s immovable properties and movable fixed assets both present and future with other term lenders, excluding term loan lenders where exclusive charge on movable fixed assets as mentioned in clause (iii) has been stipulated and assets of Captive Power Project of the Company located at Chandrapur district as mentioned in clause (v). These loans are further stipulated to be secured by a second charge ranking pari passu by way of hypothecation with other term lenders on the current assets of the Company on which the first pari passu charge is stipulated to be covered in favour of consortium of banks as mentioned in Note No. 1.6.

ii) Term Loans of Rs. 3161.500 Millions (including current maturities of Rs. 897.500 Millions) (Previous Year Rs. 3934.500 Millions including current maturities of Rs. 921.200 Millions) are stipulated to be secured by a first charge ranking pair passu on the Company’s immovable properties and movable fixed assets both present and future with other term lenders, excluding term loans lenders where exclusive charge on movable fixed assets as mentioned in clause (iii) has been stipulated and assets of Captive Power Project of the Company located at Chandrapur district as mentioned in clause (v).

iii) Term Loans of Rs. 2489.500 Millions (including current maturities of Rs. 646.300 Millions) (Previous Year Rs. 2138.900 Millions including current maturities of Rs. 220.700 Millions) are stipulated to be secured by exclusive charge on the equipment finance. Out of above, term loan of Rs. 837.100 Millions is further stipulated to be secured with the land appurtenant thereto.

iv) Term Loans of Rs. 111.500 Millions (including current maturities of Rs. 111.500 Millions) (Previous Year Rs. 251.800 Millions including current maturities of Rs. 143.900 Millions) are stipulated to be secured by first charge on the entire fixed assets ranking pari passu with other term lenders excluding term loans lenders where exclusive charge on movable fixed assets as mentioned in clause (iii) and (v) has been stipulated.

v) Term Loans of Rs. 1367.100 Millions (including current maturities of Rs. 171.200 Millions) (Previous Year Rs. 1447.900 Millions including current maturities of Rs. 124.600 Millions) are stipulated to be secured by first charge ranking pari passu on the Company’s immovable properties and movable fixed assets relating to Captive Power Projects of the Company located in Chandrapur district.

vi) Term Loan of Rs. 396.400 Millions (including current maturities of Rs. Nil) (Previous Year Rs. 386.200 Millions including current maturities of Rs. Nil) is secured by first charge ranking pari passu by hypothecation in respect of current assets of the Company present and future and are further secured by a second pari passu charge on the Company’s immovable properties and all movable fixed assets both present and future as referred in Note No.(i) above.

vii) Finance Lease Obligation is secured by Hypothecation of Assets taken under Finance Lease.

viii) Maturity Schedule

(Rs. In Millions)

Particulars	1-2 year	2-3 year	3-4year	Beyond 4 years
a) Terms Loan-from Banks (Secured Loan)	2328.800	1428.700	924.300	2042.400
b) Terms Loan-from Banks (Unsecured Loan)	150.000	-	-	-
c) Sales Tax Loan	26.200	72.600	84.000	261.400

Working Capital Borrowings from Consortium Banks are secured by first charge ranking pari passu by hypothecation in respect of current assets of the Company present and future and are further secured by a second pari passu charge on the Company’s immovable properties and all movable fixed assets both present and future.

Banking Relations :	--
Auditors 1 :
Name :	J. K. Shah and Company Chartered Accountant
Auditors 2 :
Name :	P. G. Bhagwat Chartered Accountant
Cost Auditors 1 :
Name :	Dhananjay V. Joshi and Associates Cost Accountants
Cost Auditors 2 :
Name :	Parkhi Limaye and Company Cost Accountants
Advocates and Solicitors :	· J Sagar Associates · Amarchand and Mangaldas and Suresh A Shroff and Company · Federal and Rashmikant
Subsidiary Companies :	· ISMT Enterprises SA, Luxembourg · Structo Hydraulics AB, Sweden · ISMT Europe AB, Sweden · Structo (UK) Limited, United Kingdom · Structo Hydraulics India Private Limited (up to December 4, 2012) · Tridem Port and Power Company Private Limited · Nagapattinam Energy Private Limited · PT ISMT Resources, Indonesia · Indian Seamless Inc., USA (w.e.f. June 12, 2012)
Associate Companies :	· Indian Seamless Enterprises Limited · Taneja Aerospace and Aviation Limited · Structo Hydraulics India Private Limited (w.e.f. December 5, 2012) · Indian Seamless Inc., USA (up to June 11, 2012) · Lighto Technologies Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
175000000	Equity Shares	Rs.5/- each	Rs.875.000 Millions
	Unclassified Shares		Rs.710.000 Millions
	Total		Rs.1585.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
146501383	Equity Shares	Rs.5/- each	Rs.732.500 Millions

The Company has only one class of issued shares having par value of Rs. 5/- each. Holder of Equity Shares is entitled to one vote per share.

Proposed Dividend per Equity Share Rs. Nil (Previous Year Rs. 0.75).

The reconciliation of number of shares outstanding and the amount of share capital is set-out below.

Particulars	As at March 31, 2013
	Equity Shares Number	Rs. in Millions
Shares outstanding at the beginning of the year Shares issued during the year Shares bought back during the year Shares outstanding at the end of the year	146501383 - - 146501383	732.500 - - 732.500

The details of shareholders holding more than 5% shares.

Name of Shareholders	As at March 31, 2013
	No. of Shares held	% of Holding
Indian Seamless Enterprises Limited Vishkul Leather Garments Private Limited HDFC Trustee Company Limited - HDFC- Equity Fund	55533788 14102179 7938894	37.90% 9.63% 5.42%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	732.500	732.500	732.500
(b) Reserves & Surplus	4165.700	5090.800	5454.500
(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)	4898.200	5823.300	6187.000
(3) Non-Current Liabilities
(a) long-term borrowings	7318.700	8697.300	7062.000
(b) Deferred tax liabilities (Net)	343.600	752.300	752.200
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	60.200	53.000	45.100
Total Non-current Liabilities (3)	7722.500	9502.600	7859.300
(4) Current Liabilities
(a) Short term borrowings	3218.400	1150.800	724.400
(b) Trade payables	6399.600	5917.500	5392.500
(c) Other current liabilities	5884.000	5881.300	5627.300
(d) Short-term provisions	17.900	166.600	247.600
Total Current Liabilities (4)	15519.900	13116.200	11991.800
TOTAL	28140.600	28442.100	26038.100
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13560.200	11331.700	10879.500
(ii) Intangible Assets	1.700	4.500	19.200
(iii) Capital work-in-progress	315.200	2929.700	2214.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	527.500	484.700	484.700
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	120.700	145.500	347.300
(e) Other Non-current assets	928.700	981.500	796.400
Total Non-Current Assets	15454.000	15877.600	14741.300
(2) Current assets
(a) Current investments	0.000	15.000	15.000
(b) Inventories	5078.500	4916.300	4486.000
(c) Trade receivables	4000.600	4117.500	4387.800
(d) Cash and cash equivalents	743.700	899.800	677.900
(e) Short-term loans and advances	1576.900	1403.300	806.800
(f) Other current assets	1286.900	1212.600	923.300
Total Current Assets	12686.600	12564.500	11296.800
TOTAL	28140.600	28442.100	26038.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	15917.900	19444.300	16477.000
		Other Income	206.600	244.400	141.700
		TOTAL (A)	16124.500	19688.700	16618.700
Less	EXPENSES
		Cost of Materials Consumed	7734.400	10000.700	7976.000
		Purchases of Traded Goods	82.100	0.000	0.000
		Changes in Inventories of Finished Goods & Work-in-Progress	(271.800)	(392.600)	(552.500)
		Employee Benefits	1157.900	1134.700	946.900
		Other Expenses	5706.700	6291.200	5501.900
		Foreign Exchange (Gain)/Loss	638.500	315.200	25.800
		TOTAL (B)	15047.800	17349.200	13898.100
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1076.700	2339.500	2720.600
Less	FINANCIAL EXPENSES (D)		1526.600	1207.900	905.600
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(449.900)	1131.600	1815.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		956.400	845.000	855.400
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1406.300)	286.600	959.600
Less	TAX (H)		(409.200)	0.700	206.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(997.100)	285.900	753.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		247.300	589.100	548.300
Less	APPROPRIATIONS
		Dividend	0.000	109.900	183.100
		Tax on Dividend	0.000	17.800	29.700
		General Reserve	0.000	500.000	500.000
	BALANCE CARRIED TO THE B/S		(749.800)	247.300	589.100
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3920.900	4755.700	3049.500
		Freight on Export	199.800	254.900	235.100
	TOTAL EARNINGS		4120.700	5010.600	3284.600
	IMPORTS
		Raw Materials	4554.800	4269.200	3571.100
		Stores & Spares	502.700	477.600	492.000
		Capital Goods	0.000	253.200	81.900
	TOTAL IMPORTS		5057.500	5000.000	4145.000
	Earnings/ (Loss) Per Share (Rs.)		(6.81)	1.95	5.14

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(6.18)	1.45	4.53
Net Profit Margin (PBT/Sales)	(%)	(8.83)	1.47	5.82
Return on Total Assets (PBT/Total Assets}	(%)	(5.15)	1.15	4.11
Return on Investment (ROI) (PBT/Networth)		(0.29)	0.05	0.15
Debt Equity Ratio (Total Debt/Networth)		2.15	1.69	1.26
Current Ratio (Current Asset/Current Liability)		0.82	0.96	0.94

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	732.500	732.500	732.500
Reserves & Surplus	5,454.500	5,090.800	4,165.700
Net worth	6,187.000	5,823.300	4,898.200
long-term borrowings	7,062.000	8,697.300	7,318.700
Short term borrowings	724.400	1,150.800	3,218.400
Total borrowings	7,786.400	9,848.100	10,537.100
Debt/Equity ratio	1.259	1.691	2.151

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	16,477.000	19,444.300	15,917.900
		18.009	-18.136

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	16,477.000	19,444.300	15,917.900
Profit	753.600	285.900	(997.100)
	4.57%	1.47%	(6.26)%

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	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS
Bench:- Bombay
Presentation Date:- 23/10/2013
Lodging No:-	CPL/736/2013	Failing Date:-	23/10/2013		Reg. No.:	CP/164/2014	Reg. Date:	01/03/2014
Petitioner:-	HOTEL PARC ESTIQUE			Respondent:-		ISMT LIMITED
Petn.Adv:-	S ASHINIKUMAR AND CO (O)
District:-	MUMBAI
Bench:-	SINGLE			Category:-		COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT
Status:-	Pre-Admission			Stage:-
Last Date:-	20/03/2014
Last Coram:-	REGISTRAR(OS)/PROTHONOTARY & SR. MASTER
Act:-	COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT
Under Section:-	433 434

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Term Loan from Bank	150.000	300.000
Interest Free Incentive and Sales Tax Loan	444.200	593.800
SHORT TERM BORROWINGS
Working Capital Borrowings From Bank Rupee Loan	500.000	0.000
Total	1094.200	893.800

OPERATIONS

As a result of adverse market conditions, particularly on the domestic front, volumes dropped significantly both in Tube as well as Steel. In turn, lower volumes led to higher fixed costs per ton, resulting in a further erosion of margin.

During the year the Company’s focus was on containing its losses by initiating a number of cost reduction measures at its plants with a special emphasis on improving yields, reducing input costs, and reducing the PQF mill process cost.

MANAGEMENT DISCUSSION AND ANALYSIS

The business environment more particularly in the second half of the year has been the most challenging times that they have faced in the recent past. The core sectors of the Indian economy which in turn are their key consuming sectors witnessed deceleration in growth, due to policy paralysis, apart from other reasons. The domestic Seamless Tube industry was further impacted by increasing share of imports resulting from dumping. At the global front, the developed economies continue to show growth below the consensus estimates, putting further pressure on their Exports. During the year the Company posted losses for the first time since its merger in 2004.

Export sales during the year was Rs. 4120.000 Millions and accounts for over 38% of Company’s total Tube Sales. During the year the Company initiated several cost rationalization infinitives, which apart from others involved developing new vendors in the international markets. The imported raw material now accounts for 55% of Company’s total Raw Material requirement against 48% Previous Year.

EBIDTA in absolute terms during the year stood at Rs. 1715.100 Millions, impacted by under utilisation of capacities. In absence of Banking, the 40 MW Captive Power Plant was forced to run at lower PLF to match with lower power requirement of the manufacturing plants. Over 68% of Company’s power requirement was met through the Captive route.

As mentioned in the last report, the Company continues its efforts to lobby against the rising imports of seamless tubes at prices which is clearly hurting the domestic industry. Imports now accounts for over 60% of domestic consumption and has been on a rise. After aggressively pursuing, the Directorate General of Safeguards under Ministry of Finance has initiated Safeguard investigations vide its Notification dated April 22, 2013. The Company is expected to substantially benefit from levy of safeguard duty on Import of seamless tubes as and when it happens. The Company is hopeful of a positive outcome of the same.

Having created significant tube and steel capacities, the challenge during the year has been to achieve volumes and hence higher capacity utilisation. The immediate priority of the Company has been to sail through this difficult times while maintaining its quality standards and ensure that the Company retains and wins those customers that matter the most.

The 40 MW Captive Power Project was undertaken to address the rising power cost, which accounts for Company’s second biggest cost element after Raw Material. However, the denial of Banking beyond 15 minutes, has resulted into captive consumption of only 76% units generated at the 40 MW Captive Power Plant. With the fluctuating nature of power consumption involved at Company’s Steel and Tube manufacturing plants the Company is forced to sell the balance power at rate which is below its cost of generation. Further, their request for coal linkage continues to be pending for over five years now which has further aggravated the problem.

The problems in the Eurozone refusing to die down, it continued to negatively impact Company’s Overseas subsidiary Structo Hydraulics AB, Sweden.

SEGMENT / PRODUCT INFORMATION

The Company is engaged in manufacturing Seamless Tubes and Engineering Steels. Seamless Tube accounted for 73% of ISMT’s total external sales value while Steel accounted for 27% of the total Steel Billets sold, 64% of the Steel in Quantity terms was used captively to make Tubes while 36% was sold to the external market.

The Company continued with its strategy to sell value added Steel Billets to external market and outsourced commodity grade Steel Billets required for inhouse Tube manufacturing.

OUTLOOK

The overall outlook has changed to cautiously optimistic with start of commodity prices and inflation moderating. However the uncertain geopolitical and economic situation both domestically and internationally, makes us cautious. The Company is well poised to take advantage of economic upturn which has started showing early positive signs. The benefit from both, increased capacities and the Captive Power Plant is expected to gradually flow in with recovery in volumes.

CONTINGENT LIABILITY

(Rs. In Millions)

Particulars	31.03.2013	31.03.2012
a) Claims against the Company not acknowledged as debt
Sales Tax	121.700	121.700
Income Tax disputed by the Company	2.000	2.000
Excise Duty	409.800	385.000
Others	94.200	89.400
b) Corporate Guarantees	272.000	493.600
c) Bills discounted on behalf of third party	747.000	370.600

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST DECEMBER 2013

(Rs. In Millions)

r. No.	Particulars	Quarter ended		Nine Months ended
		31.12 2013	30.09.2013	31.122013
		Unaudited	Unaudited	Unaudited
1	Gross Sales/ Income from Operations	5917.400	7146.700	1,9298.500
	Less :  Inter Segment Transfers	2110.300	2540.600	6737.500
	Inter Division Transfers	90.100	99.000	317.000
	Excise Duty	327.400	403.000	1087.000
	(a) Net Sales/ Income from Operations	3389.600	4104.100	1,1157.000
	(b) Other Operating Income	168.200	153.600	507.300
	Total Income from Operations (a+b)	3557.800	4257.700	1,1664.300
2	Expenses
	(a) Consumption of Raw Materials	2029.800	2116.800	5940.300
	(b) Purchases of stock-in-trade	-	11.400	14.000
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(425.000)	(234.500)	(667.500)
	(d) Employee benefits expense	323.100	304.800	923.500
	(e) Depreciation & Amortisation Expense	255.800	258.600	762.900
	(f) Other Expenses :
	(i) Energy	782.700	907.600	2443.400
	(ii)Other Direct Expenditure	699.100	712.700	1969.400
	(iii) Other Expenditure	70.400	77.500	218.900
	Total Expenses	3735.900	4154.900	1,1604.900
3	Profit / (Loss) from Operations before other income, finance costs and exceptional items (1-2)	(178.100)	102.800	59.400
4	Other Income	32.700	46.500	124.400
5	Profit / (Loss) from ordinary activities before finance costs and	(145.400)	149.300	183.800
	exceptional items ( 3+4)
6	Finance Costs	486.600	448.700	1332.000
7	Profit / (Loss) from ordinary activities after finance costs but before exceptional items and foreign exchange( Gain)/ Loss ( 5-6)	(632.000)	(299.400)	(1148.200)
8	Exceptional items
	a) Foreign Exchange (Gain)/ Loss	146.900	112.200	329.700
	b) Excess Energy Cost	-	156.600	156.600
	c) Others (Refer Note No. 6)	113.800	36.100	191.800
9	Profit / (Loss) from ordinary activities before tax (7- 8)	(892.700)	(604.300)	(1826.300)
10	Tax Expenses	(9.300)	(216.400)	(343.600)
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	(883.400)	(387.900)	(1482.700)
12	Extraordinary items	-	-	-
13	Net Profit / (Loss) for the period after tax (11-12)	(883.400)	(387.900)	(1482.700)
14	Paid-up Equity Share Capital (Face Value of Rs.5/- per share)	732.500	732.500	732.500
15	Reserves excluding Revaluation Reserves as per	-	-	-
	Balance Sheet of previous accounting year.
16	Earnings per share before extraordinary items
	Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised)	(6.03)	(2.65)	(10.12)
17	Earnings per share after extraordinary items
	Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised)	(6.03)	(2.65)	(10.12)
	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of Shares	70130612	70130712	70130612
	Percentage of Shareholding	47.87%	47.87%	47.87%
2	Promoters and promoter group shareholding
	(a) Pledged / Encumbered
	Number of Shares	NIL	NIL	NIL
	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 )	-	-	-
	(b) Non - Encumbered
	Number of Shares	76370771	76370671	76370771
	Percentage of Shares ( as a % of the total shareholding of promoter	100.00%	100.00%	100.00%
	and promoter group )
	Percentage of Shares ( as a % of the total share capital of the company )	52.13%	52.13%	52.13%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	2
	Disposed of during the quarter	2
	Remaining unresolved at the end of the quarter	NIL

Note:

The Company had adopted the Hedge Accounting policy and principles set out in Accounting Standard (AS) 30 Financial Instruments: Recognition and Measurement. During the quarter ended 31st December, 2013, the Company has carried Exchange Gain of Rs 132.800 Millions to Hedge Reserve Account and charged Exchange Loss of Rs 66.800 Millions to Statement of Profit and Loss from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 31st December, 2013 is Rs. 706.500 Millions.

The Company has exercised the option as per Para 46 A inserted in the Accounting Standard ( AS-11) for treatment of exchange difference on long term monetary liabilities, other than covered under the Hedge accounting . Accordingly during the quarter ended 31st December, 2013, Exchange Gain capitalized is Rs. 49.200 Millions and Exchange Gain recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 5.900 Millions and Exchange Loss of Rs. 4.100 Millions transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 31st December, 2013 is Rs. 112.100 Millions.

Based on the advice on treatment of Amalgamation Reserve created in terms of the Scheme of Arrangement, sanctioned by the Hon'ble High Court, Bombay, the Company has adjusted depreciation of Rs.16.700 Millions and Rs.50.500 Millions during current quarter and nine months ended 31st December, 2013 respectively against the Amalgamation Reserve.

The Company has invested Rs.484.300 Millions in its subsidiary ISMT Enterprises, Luxembourg, which in turn holds 100 % investment in Struc to Hydraulics AB, Sweden (SHAB). The company has given a corporate guarantee of Rs 185.700 Millions (USD 3 Million) for loan availed by SHAB. The net recoverable on account of supplies by the company to SHAB is Rs. 416.700 Millions. While SHAB had cash loss in the previous year and the net worth of SHAB is eroded. The management is of the opinion that the investment made in ISMT Enterprises group is strategic and as a forward integration in the value chain of core business of the company and the diminution is temporary in nature, as such no provision for the same is considered necessary.

Upon petition filed by the Company regarding non implementation of Energy Banking Agreement (EBA) dated 7th May, 2010, Maharashtra Electricity Regulatory Commission (MERC) had passed an interim order dated 13th May,2013 inter alia restoring the banking. This order was challenged by Maharashtra State Electricity Distribution Company Limited (MSEDCL) on grounds of jurisdiction before the Appellate Tribunal for Electricity after being turned down by High Court at Bombay, which the Tribunal had remanded back to MERC after setting aside the above order. MERC has now passed an order dated 3rd December,2013, confirming that they have jurisdiction to stipulate banking. Based on Legal advice, the Company, pending final disposal of the petition, has continued to accrue Banking Credit as per EBA of Rs.56.700 Millions and Rs.150.600 Millions during current quarter and nine months ended 31st December, 2013 respectively (Cumulative up to 31st December, 2013 Rs. 450.000 Millions) representing excess energy charges paid to MSEDCL on account of non availability of banking facility.

Exceptional Item - Others include Legal and other expenses incurred in international arbitration and write off insurance claim not received.

The comparative figures are regrouped and reclassified to meet the current quarter's classification.

The above results were reviewed by the Audit committee and have been taken on record by the Board of Directors at their meeting held on 11th February, 2014.

SEGMENT WISE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST DECEMBER 2013

(Rs. In Millions)

Sr. No.	Particulars	31.12 2013	30.09.2013	31.122013
		Unaudited	Unaudited	Unaudited
1	Segment Revenue
	a) Gross Sales – Tube	2847.700	3239.300	8972.600
	Less : Inter Division	90.100	99.000	317.000
	: Excise Duty	212.900	243.700	675.300
	Sub total	2544.700	2896.600	7980.300
	b) Gross Sales – Steel	3069.700	3907.400	1,0325.900
	Less : Inter Segment	2110.300	2540.600	6737.500
	: Excise Duty	114.500	159.300	411.700
	Sub total	844.900	1207.500	3176.700
	Total Net Sales/ Income from Operations	3389.600	4104.100	1,1157.000
2	Segment Results
	Profit / ( Loss) after Depreciation & before interest & Finance Costs
	Exceptional items, Unallocable income (net) and Tax
	a) Tube	(71.100)	80.400	57.400
	b) Steel *	(163.700)	0.500	(148.100)
	Total	(234.800)	80.900	(90.700)
	Less : Finance Costs	486.600	448.700	1332.000
	Less : Exceptional items
	: Foreign Exchange (Gain) / Loss	146.900	112.200	329.700
	: Excess Energy Cost	-	156.600	156.600
	: Others	113.800	36.100	191.800
	Add : Unallocable Income	89.400	68.400	274.500
	( Net of Unallocable Expenses)
	Total Profit/ (Loss) Before Tax	(892.700)	(604.300)	(1826.300)
	Less : Tax Expenses	(9.300)	(216.400)	(343.600)
	Total Profit/(Loss) After Tax	(883.400)	(387.900)	(1482.700)
3	Capital Employed
	( Segment Assets – Segment Liabilities)
	a) Tube	1,4656.300	1,5201.800	1,4656.300
	b) Steel	731.500	489.100	731.500
	c) Unallocable	(1,2619.700)	(1,2232.000)	(1,2619.700)

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

Sr. No.	Particulars	30.09.2013
A	EQUITY AND LIABILITIES
1	Shareholders' Funds
	a) Share Capital	732.500
	b) Reserves & Surplus	2726.400
	Sub -Total Shareholders' funds	3458.900
2	Non - Current Liabilities
	a) Long Term Borrowings	9469.400
	b) Deferred Tax Liabilities (Net)	9.300
	c) Long Term Provisions	71.000
	Sub - Total - Non Current Liabilities	9549.700
3	Current Liabilities
	a) Short Term Borrowings	3108.800
	b) Trade Payables	6574.800
	c) Other Current Liabilities	6829.800
	d) Short Term Provisions	28.700
	Sub -Total - Current Liabilities	1,6542.100
	TOTAL EQUITY AND LIABILITIES	2,9550.700
B	ASSETS
1	Non - Current Assets
	a) Fixed Assets	1,4091.500
	b) Non-Current Investment	527.500
	c) Long Term Loans and Advances	126.900
	d) Other Non-Current Assets	928.300
	Sub - Total - Non - Current Assets	1,5674.200
2	Current Assets
	a) Inventories	5601.700
	b) Trade Receivables	4333.900
	c) Cash and Bank Balances	1138.400
	d) Short Term Loans and Advances	1501.100
	e) Other Current Assets	1301.400
	Sub - Total - Current Assets	1,3876.500
	Total Assets	2,9550.700

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10457773	30/10/2013	500,000,000.00	State Bank of India	INDUSTRIAL FINANCE BRANCH, PUNE, TARA CHAMBERS, MUMBAI PUNE ROAD, PUNE, MAHARASHTRA - 411003, INDIA	B88611462
2	10448095	30/08/2013	500,000,000.00	Bank of India	SUSHILP, 1290, SHIVAJINAGAR, OPPOSITE SWAN INN, OFF. JANGLI MAHARAJ ROAD, PUNE, MAHARASHTRA - 411005, INDIA	B84601442
3	10447489	24/08/2013	500,000,000.00	Bank of Baroda	CORPORATE FINANCIAL SERVICES BRANCH, MANTRI COURT, 1ST FLOOR, 39, RAMABAI AMBEDKAR ROAD, PUNE, MAHARASHTRA - 411001, INDIA	B84253087
4	10446041	01/08/2013	500,000,000.00	BANK OF MAHARASHTRA	LOKMANGAL, 1501,SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	B83566620
5	10440923	03/07/2013	400,000,000.00	ICICI Bank Limited	'A' WING, SHANGRILA GARDEN, 3RD FLOOR, BUNDGARDEN ROAD, PUNE, MAHARASHTRA - 411001, INDIA	B81064719
6	10433156	05/06/2013	300,000,000.00	Andhra Bank	SPECIALIZED CORPORATE FINANCE BRANCH, 16TH FLOOR, EARNEST HOUSE, NCPA MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B78015427
7	10419654	04/04/2013	500,000,000.00	Indian Overseas Bank	PUNE CANTONMENT BRANCH, WONDERLAND, 7 M G ROAD, PUNE, MAHARASHTRA - 411001, INDIA	B73172025
8	10383532	08/10/2012	516,500,000.00	Bank of India	4TH FLOOR, 63 QUEEN VICTORIA STREET, LONDON, - EC4N4UA, UNITED KINGDOM	B60930641
9	10384144	08/10/2012	774,750,000.00	BANK OF BARODA	GLOBAL SYNDICATION CENTER, 32 CITY ROAD, LONDON,- EC1Y2BD, UNITED KINGDOM	B61175071
10	10357625	23/05/2012	450,000,000.00	Bank of India	1162/6 SHIVAJINAGAR, UNIVERSITY ROAD, PUNE, MAHARASHTRA - 411005, INDIA	B40381154
11	10346942	30/03/2012	1,100,000,000.00	Bank of Maharashtra	LOKMANGAL, 1501, SHIVAJINAGAR, PUNE, MAHARASHTRA - 411005, INDIA	B36759421
12	10306539	26/08/2011	440,000,000.00	Central Bank of India	PUNE CAMP BRANCH, 317, M G ROAD, PUNE, MAHARASHTRA - 411001, INDIA	B20656641
13	10312001	15/03/2012 *	500,000,000.00	ICICI Bank Limited acting through its Singapore Br  anch	9 RAFFLES PLACE #50-01, REPUBLIC PLAZA, SINGAPORE , - 048619, SINGAPORE	B35303098
14	10285250	04/05/2011	50,000,000.00	Bank of Maharashtra	628 / 629 SACHAPIR STREET, CAMP BRANCH, PUNE, MAHARASHTRA - 411001, INDIA	B12073854
15	10277142	16/04/2012 *	500,000,000.00	Andhra Bank	SPECIALIZED CORPORATE FINANCE BRANCH, 16TH FLOOR, EARNEST HOUSE, NCPA MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B39138888
16	10264133	11/01/2011	850,000,000.00	Bank of Maharashtra	628/629, SACHAPIR STREET, CAMP BRANCH, PUNE, MAHARASHTRA - 411001, INDIA	B05011531
17	10260098	28/12/2010	460,000,000.00	Central Bank of India	PUNE CAMP BRANCH, 317, M.G. ROAD, PUNE, MAHARASHTRA - 411001, INDIA	B03163854
18	10220918	29/04/2010	600,000,000.00	Indian Overseas Bank	7 M G ROAD, WONDERLAND, CAMP, PUNE, MAHARASHTRA - 411001, INDIA	A86681020
19	10211203	28/12/2010 *	500,000,000.00	Bank of India	1162/6, SHIVAJI NAGAR, NEAR OBSERVATORY, UNIVERSITY ROAD, PUNE, MAHARASHTRA - 411005, INDIA	B02537827
20	10211194	22/03/2010	400,000,000.00	BANK OF MAHARASHTRA	628/629 SACHAPIR STREET, CAMP BRANCH, PUNE, MAHARASHTRA - 411001, INDIA	A82974296

* Date of charge modification

FIXED ASSETS

Tangible Assets

· Land – Freehold

· Land – Leasehold

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles

Intangible Assets

· Techinical Know-How

· Software Development

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.61.01
UK Pound	1	Rs.101.65
Euro	1	Rs.85.02

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.