MIRA INFORM REPORT

Report Date :

25.03.2014

IDENTIFICATION DETAILS

Name :	MUKAND LIMITED (w.e.f. 23.03.1989)
Formerly Known As :	MUKAND IRON AND STEEL WORKS LIMITED
Registered Office :	Bajaj Bhavan, Jamnalai Bajaj Marg, 226 Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.11.1937
Com. Reg. No.:	11-002726
Capital Investment / Paid-up Capital :	Rs.787.500 Millions
CIN No.: [Company Identification No.]	L99999MH1937PLC002726
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19254E
PAN No.: [Permanent Account No.]	AAACM5008R
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchange.
Line of Business :	Manufacturing, Marketing and Exporting of Iron and Steel Products.
No. of Employees :	1970 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 83200000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having a moderate track record. The company is continuously incurring losses from its two years of operations. However, net worth of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities=BB+ (Suspended)
Rating Explanation	Have moderate risk of default.
Date	23.01.2012

Rating Agency Name	CARE
Rating	Short Term Bank Facilities=A4 (Suspended)
Rating Explanation	Have minimal degree of safety very high credit risk.
Date	23.01.2012

Reason: The ratings have been suspended as the company has not furnished the adequate information required by CARE for monitoring the rating.

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 (91-22-21727500)

LOCATIONS

Registered Office :	Bajaj Bhawan, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-61216666 / 61216629
Fax No.:	91-22-22021174
E-Mail :	investors_cell@mukand.com kjmallya@mukand.com mukandop@bom3.vsnl.net.in co.secretary@mukand.com info@mukand.com
Website :	www.mukund.com
Branch Office :	Located at : · Bangalore · Chennai · Delhi · Kolkata · Visakhapatnam
Factory 1 :	Thane-Belapur Road, Dighe, Kalwe, Thane – 400 605, Maharashtra, India
Tel. No.:	91-22-21727500/7700
Fax No.:	91-22-25348179
Factory 2 :	Ginigera, Karnataka – 583 228, India

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Niraj Bajaj
Designation :	Chairman and Managing Director
Age :	31 Years
Qualification :	B.COM.,M.B.A. (HARVARD BUSINESS SCHOOL)
Name :	Mr. Rajesh V Shah
Designation :	Co-Chairman and Managing Director
Age :	35 Years
Qualification :	M.A.(CAMBRIDGE),M.B.A (CALIFORNIA),P.M.D. (HARVARD BUSINESS SCHOOL)
Name :	Mr. Dhirajlal S Mehta
Designation :	Board of Director
Name :	Mr. Suketu V Shah
Designation :	Joint Managing Director
Age :	30 Years
Qualification :	B.COM.(HONS.),M.B.A. (HARVARD BUSINESS SCHOOL)
Name :	Mr. Vinod S Shah
Designation :	Board of Director
Name :	Dr. N P Jain, IFS (Retd.)
Designation :	Board of Director
Name :	Mr. Narendra J Shah
Designation :	Board of Director
Name :	Mr. N C Sharma
Designation :	Board of Director
Name :	Mr. Prakash V Mehta
Designation :	Board of Director
Name :	Mr. Pradip P Shah
Designation :	Board of Director
Name :	Mr. Amit Yadav
Designation :	Board of Director

KEY EXECUTIVES

Name :	Mr. K J Mallya
Designation :	Company Secretary
	STEEL DIVISION
Name :	Mr. A M Kulkarni
Designation :	Chief Executive (Steel Plant, Thane)
Name :	Mr. R Sampath Kumar
Designation :	Chief Executive (Steel Plant, Ginigera)
Name :	Mr. C H Sharma
Designation :	Technical Advisor, Stee
Name :	Mr. Sidharth Shah
Designation :	Chief of Materials Management
Name :	Mr. V M Mashruwala
Designation :	Chief of Marketing (Alloy and Stainless Steel)
Name :	Mr. Virendra K Mittal
Designation :	Business Development Director
	INDUSTRIAL MACHINERY DIVISION
Name :	Mr. R Jagannathan
Designation :	Chief Executive

SHAREHOLDING PATTERN

AS ON 15.03.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	41306997	29.21
Bodies Corporate	62424011	44.15
Sub Total	103731008	73.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	103731008	73.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6007	0.00
Financial Institutions / Banks	101439	0.07
Insurance Companies	7244583	5.12
Foreign Institutional Investors	908621	0.64
Sub Total	8260650	5.84
(2) Non-Institutions
Bodies Corporate	10262474	7.26
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	10337758	7.31
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	8379492	5.93
Any Others (Specify)	434479	0.31
Clearing Members	48717	0.03
Non Resident Indians	385762	0.27
Sub Total	29414203	20.80
Total Public shareholding (B)	37674853	26.64
Total (A)+(B)	141405861	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)	141405861	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Marketing and Exporting of iron and steel products.

Products :

Product Description	ITC Code
Bars and rods of Alloys Steel	7228 30 29
Bars and rods, coils, Other Alloy Steel (CHQ)	7227 90 40
Bars, Rods Hot Rolled Coils of Stainless Steel Nickel Chrome Austenitic Type	7221 00 12
Overhead Traveling Crane on Fixed Support	8426 11 00

PRODUCTION STATUS (AS ON: 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bars, Rods and Coils of Special and Alloy Steel and Stainless Steel	Tonnes	640000#	342024**
Electrical Energy (Captive Power Generation)  At Dighe – Fuel Oil based At Ginigera – Gas Based	Tonnes	22.10 M.W. 15.00 M.W.	82.70 Million KWH 6.67 Million KWH
Semi-Finished Billets and Blooms	Tonnes	970000##	565413@@

NOTE:

** Steel production includes 5,334 Tonnes (7,591 Tonnes) converted outside.

@@ Includes 204,301 Tonnes (182,857 Tonnes) converted from customers’ material.

# Installed capacity of Bar Rods and Coils includes 140,000 Tonnes of installed capacity from Ginigera plant allotted for products of Mukand Limited under Strategic Alliance Agreement with Kalyani Steels Limited

## Installed capacity of Semi-Finished Billets and Blooms at Ginigera of 700,000 Tonnes, includes 289, 660 Tonnes of capacity allotted for products of Kalyani Steels Limited under Strategic Alliance Agreement.

GENERAL INFORMATION

Customers :

Original equipment manufacturers (OEMs)

· Motor Industries Company Limited

· SKF India Limited

· Maruti Udyog Limited

· Delphi Automotive Systems Limited.

· Bajaj Auto Limited

· Sona Koyo Stearing Systems Limited

· Honda Motor Cycle and Scooter India Private Limited

· Hi-Tech Gears Limited

· Sundram Fasteners Limited

· Hero Honda Motors Limited

Government sector in India

· Steel Authority of India Limited

· National Aluminium Company Limited

· Bharat Heavy Electricals Limited

· State Electricity Boards

· Nuclear Power Corporation Limited

· National Thermal Power Corporation Limited

· National Hydro Power Corporation Limited

· Indian Space Research Organisation

· Defence Research and Development Organisation

Non - government sector in India

· Tata Group of companies

· Larsenand Toubro Limited

· Hindustan Aluminium Limited

· Sterlite/Bharat Aluminium Company Limited

· Loesche India

· Ispat Industries

· Essar Group

· Birla Copper

No. of Employees :

1970 (Approximately)

Bankers :

· Allahabad Bank

· ABN Amro Bank N.V.

· Bank of Baroda, Khand Bazar

· Dena Bank

· Bank of India, Fort Branch, Mumbai

· HDFC Bank Limited

· Indian Overseas Bank

· IDBI Bank, Nariman Point Branch, Mumbai

· ICICI Bank Limited, Backbay Reclamation Branch, Mumbai, Maharashtra, India

· Punjab National Bank

· State Bank of India

· Axis Bank Limited

Facilities :

LONG TERM BORROWINGS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
SECURED LOANS
Debentures	202.000	387.200
Term Loans
From Banks	2489.800	4140.600
From Financial Institutions	1190.100	1558.600
From Others	1176.300	440.300
UNSECURED LOANS
Fixed Deposits	1025.600	1196.600
Long Term Loans from Companies	2469.500	0.000
Sales Tax Deferment Loans	13.900	18.600
Total	8567.200	7741.900

SHORT TERM BORROWINGS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
SECURED LOANS
Working Capital Loans from Banks	6889.500	5909.800
UNSECURED LOANS
Short Term Loans from Companies	1956.600	2495.700
Total	8446.100	8405.500

NOTES:

Long term Borrowings:

Nature of Security	Terms of Repayment
Debentures 5,800,000, 10.50% (2006-15) Mortgage Debentures (balance outstanding as at 31.03.2013 Rs.408.200 Millions, Previous Year Rs.456.900 Millions), are secured by way of first pari-passu charge against mortgage / hypothecation of Company’s freehold land, immovable and movable fixed assets both present and future of the Company at Kalwe and Dighe, District Thane, in the State of Maharashtra and leasehold land, immovable and movable fixed assets both present and future of the Company at Ginigera / Kankapura, District Ginigera in the State of Karnataka and such mortgage and charge shall rank pari-passu with the existing mortgages and charges created in favour of financial institutions, banks and a company for their term loans except term loans at (ii) to (xiii) below. These debentures are also secured by way of a second and subservient pari-passu charge on stocks (excluding machinery spares) and book debts.	Rescheduled for repayment in 90 monthly installments from 2006 to 2015 in terms of financial restructuring package approved by Corporate Debt Restructuring Cell (CDR) in July 2003 and April 2009.
Term loans from Banks, Financial Institutions and a Company (balance outstanding as at 31.03.2013 Rs.2527.800 Millions, Previous Year Rs.3089.000 Millions), These are secured on pari-passu basis against the same assets as given to Trustees for Debentures as shown at (i) above.	The principal term debt is to be repaid in 144 monthly installments commencing from April 2006 and ending in March, 2018 with a predetermined ballooning schedule. During April 2009 CDR Cell approved deferment of principal amount due for payment aggregating Rs.1190.000 Millions during the period of 18 months commencing from 1st April, 2009 and ending on 30th September, 2010. The total loan amount is now rescheduled to be paid during FY2010-11 to FY2014-15 in place of the earlier schedule of payments by FY2017-18 without any increase in the rate of interest. Based on an assessment of its financial commitments and the estimated cash flows, the management is confident of meeting all its financial commitments in the foreseeable future.
Term loan of Rs.625.000 Millions (balance outstanding as at 31.03.2013 - Rs.625.000 Millions Previous Year Rs.625.000 Millions) from a Bank is secured against office premises at Mumbai and three residential premises at Mumbai.	Repayable in 36 equal monthly installments commencing from March 2013.
Term loan of Rs.3500.000 Millions (balance outstanding as at 31.03.2013 - Rs.2187.500 Millions, Previous Year Rs.2875.000 Millions) from a Bank is secured against mortgage of 50 acres of leasehold land at Dighe, Thane.	Term loan of Rs.750.000 Millions is repayable in 30 equal monthly installments commencing from September 2010. Term loan of Rs.1500.000 Millions is repayable in 40 equal monthly installments commencing from August 2011. Term loan of Rs.1250.000 Millions is repayable in 36 equal monthly installments commencing from April 2013.
Term loan of Rs.1000.000 Millions (balance outstanding as at 31.03.2013 - Rs.4250.000 Millions, Previous Year Rs.7000.000 Millions) from a Bank is secured on pari-passu basis against the same assets as given to Trustees for Debentures as shown at (i) above.	Repayable in 40 equal monthly installments commencing from February 2011.
Term loan of Rs.350.000 Millions (balance outstanding as at 31.03.2013 - Rs.285.800 Millions, Previous Year Rs.350.000 Millions) from a Bank is secured against plant and machinery and other moveable assets of Captive Power Plant at Ginigera / Kankapura, District Ginigera in the State of Karnataka.	Repayable in 60 equal monthly installments commencing from April 2012.
loan of Rs.125.000 Millions (balance outstanding as at 31.03.2013 - Rs.12.300 Millions, Previous Year Rs.57.800 Millions) from a Company is secured against hypothecation of specific movable plant and machinery, furniture and fixtures and office equipment.	Repayable in 36 monthly installments commencing from July 2010.
Loan of Rs.175.000 Millions (balance outstanding as at 31.03.2013 - Rs.91.800 Millions, Previous Year Rs.146.300 Millions) from a Company is secured against a residential premises at Delhi.	Repayable in 36 monthly installments commencing from September 2011.
Loan of Rs.250.000 Millions (balance outstanding as at 31.03.2013 - Rs.231.700 Millions, Previous Year Rs.250.000 Millions) from a Company is secured against mortgage of 5 acres of lease hold land at Dighe, Thane.	Repayable in 24 monthly installments commencing from February 2013.
Term loans of Rs.1000.000 Millions (balance outstanding as at 31.03.2013 - Rs.1000.000 Millions, Previous Year Rs. Nil) from HDFC Limited is secured against mortgage of 50 acres of lease hold land at Dighe, Thane (Pari-Passu Charge).	Repayable in 36 monthly installments commencing from July 2013 for a loan of Rs.500.000 Millions and October 2013 for a loan of Rs.500.000 Millions.
Term loan of Rs.500.000 Millions (balance outstanding as at 31.03.2013 - Rs.471.700 Millions, Previous Year Rs. Nil) from a Company is secured against various items of Plant and Machinery at Dighe, Thane, the charge being subservient to lenders at (i) and (ii) above.	Repayable in 58 monthly installments commencing from July 2012.
Term loan of Rs.374.500 Millions (balance outstanding as at 31.03.2013 - Rs.373.500 Millions, Previous Year Rs. Nil) from a Company is secured against Plant and Machinery at Ginigera, Kanakapura, District Ginigera in the State of Karnataka of Sinter Plant, Hot Blast Stoves and Pulverising Plant.	Repayable in 58 monthly installments commencing from February 2013.
Term loans of Rs.80.000 Millions from two companies (Rs.40.000 Millions from each company) (balance outstanding as at 31.03.2013 – Rs.80.000 Millions, Previous Year Rs. Nil) are secured against mortgage of a residential premises at Mumbai.	Repayable in one installment in November 2014.
(II) Effect and Progress of Restructuring Package In terms of the Financial Restructuring Package (FRP) approved by the Corporate Debt Restructuring (CDR) Cell in July 2003 and April 2009, the terms of security, redemption and conversion have been rescheduled. A separate disclosure is made hereunder to explain the same, as also the progress made so far: 1) Promoters / Associates have pledged 11,426,514 equity shares and 546,652 cumulative redeemable preference shares out of their share-holding in the Company. 2) Pledge of Promoters’ holding of shares of Bajaj Auto Limited is to the tune of Rs.109.000 80.000 Millions. 3) The Company shall ensure balance realization of non-core assets and investments aggregating Rs.827.300 (net of amounts realized till 31.03.2013) over a specified time schedule ending on 30th September 2013. 4) Lenders shall have a right of recompense upto 12% per annum in excess of the effective IRR charge / credit in FRP for 8 years commencing from the date of approval. 5) In the event of default, as defined in the restructuring package, the lenders have the right to cancel, suspend, reduce or modify all or any of the relief and concessions or vary the terms and conditions thereof. (III) For details of loans received from related parties. (IV) Deferred sales tax liability is to be paid in 5 annual instalments commencing from FY2012-13 to FY 2016-17.

Short term Borrowings:

Working Capital Facilities

a) Working Capital Facilities from the Banks and other non-funded facilities are secured by hypothecation of stocks (excluding machinery spares) and book debts. The said facilities are also secured by way of second and subservient pari passu charge against the same assets as given to Trustees for Debentures as shown at Note No.3. The said charge shall be second and subservient to all other first charges created in favour of Trustees for all the series of Debentures and 􀀯enders for their term loans at (i) and (ii) at Note No.3 (I).

Note: Security given for the debentures, term loans at Note No.3 (I) and working capital facilities mentioned above exclude:

48 acres of grant land at Kalwe and Dighe, District Thane in the State of Maharashtra.

Leasehold land at Dighe, Thane, as it is mortgaged to lenders covered at Note No.3(I) (iv), (ix), (x) and (xi).

Freehold land acquired for Coke Oven Plant at Ginigera / Kankapura, District Ginigera in the State of Karnataka.

Plant and Machinery of Captive Power Plant at Ginigera / Kankapura, District Ginigera in the State of Karnataka is given as security to lenders covered at Note No.3 (I) (vi).

39.58 acres leasehold land at lonand, District Satara in the State of Maharashtra, for Company’s project of expansion of finishing facilities for steel products.

43.14 acres of leasehold land at Sinnar, District Nasik, in the State of Maharashtra, for Company’s project of expansion of its Industrial Machinery Division. 152.83 acres of freehold land in the State of Jharkhand, for Company’s projects in that State.

b) Company has defaulted in repayment of current maturity of long Term Debt to lenders to extent of Rs.315.900 Millions out of which Rs.228.400 Millions has been paid after close of the year.

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Subsidiaries :	· Mukand Global Finance Limited (MGFL), Mukand International Ltd. (MIL), · Vidyavihar Containers Limited (VCL), Mukand Vijayanagar Steel Ltd., · Mukand International FZE (MIFZE), · Mukand Sumi Metal Processing Limited (MSMPL) w.e.f. 29.10.2012
	·
Other related parties where control exists :	· Mukand Engineers Limited (MEL) · Bombay Forgings Limited (BFL) · Stainless India Ltd. (SIL), Hospet Steels Limited (HSL)
Joint Ventures :	· Mukand Vini Mineral Limited (MVML).
	·
Other related parties where significant influence exists or where the related party has significant influence on the Company :	· Kalyani Mukand Limited · Lineage Investments Limited (upto 29.03.2013) · Catalyst Finance Limited (upto 29.03.2013) · Econium Investments and Finance Limited (upto 29.03.2013) · Fusion Investments and Financial Services Limited (upto 29.03.2013) · Primus Investments and Finance Limited (upto 29.03.2013) · Conquest Investments and Finance Limited (upto 29.03.2013) · Jamnalal Sons Private Limited (JSPL) · Adonis Laboratories Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
118000000	Equity Shares	Rs.10/- each	Rs.1180.000 Millions
7000000	Preference Shares	Rs.10/- each	Rs.70.000 Millions
	Total		Rs.1250.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
73159805*	Equity Shares	Rs.10/- each	Rs.731.600 Millions
5626320	Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.56.300 Millions
	Total		Rs.787.900 Millions

* includes 28,031 Equity Shares which have been kept in abeyance by the Stock Exchange Authorities

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
73114129	Equity Shares	Rs.10/- each	Rs.731.100 Millions
5626320	Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.56.300 Millions
	Add: Forfeited Shares		Rs.0.100 Million
	Total		Rs.787.500 Millions

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	Number of Shares
At the beginning of the year	73.100
Add : issued during the period	0.000
Less : bought back during the year	0.000
Outstanding at the end of the year	73.100

Preference Shares (CRPS)	Number of Shares
At the beginning of the year	5.600
Add : issued during the period	0.000
Less : bought back during the year	0.000
Outstanding at the end of the year	5.600

b. Terms / rights attached to equity shares

The Company has only one class of equity share having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. During the year ended 31 March 2013, the amount of dividend per share recognized as distribution to equity shareholders was Rs. Nil (31 March 2012 : Re. Nil).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Terms of redemption of CRPS

Pursuant to the order of the Hon’ble High Court of Judicature at Bombay dated October 14, 2003, the Company had cancelled 22 ½ equity shares issued and unallotted and reduced 20% of the outstanding equity shares amounting to 5,626,320 equity shares. In lieu of cancelled shares, the company has issued 5,626,320 0.01% Cumulative Redeemable Preference Shares of Rs.10/- each entitled for cumulative Preference dividend of 0.01% p.a. and redeemable in five equal annual installments starting from September. 2019. In the event of liquidation of the company before redemption, the holders of CRPS will have priority over equity shares in the payment of dividend and repayment of capital.

d. The Company does not have any holding company.

e. There are no bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

f. Details of shareholders holding more than 5% shares in the company

Name of Shareholder (Equity Shares)	Number of Shares	% holding
Jamnalal Sons Private Limited	13147761	17.98
Life Insurance Corporation of India	7228076	7.89
Bajaj Holdings and Investments Limited	4056782	5.55
Jeewan Limited	4785369	6.55
CRPS of Rs.10/- each fully paid
Life Insurance Corporation of India	595545	10.58
Jamnalal Sons private Limited	474143	8.43

As per of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

g. There are no shares reserved for issue under options and contracts / commitments for sale of shares / disinvestment.

h. There are no unpaid calls from any Director and officer.

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	787.500	787.500	787.500
(b) Reserves & Surplus	20032.700	20470.800	21449.700
(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)	20820.200	21258.300	22237.200
(3) Non-Current Liabilities
(a) long-term borrowings	8567.200	7741.900	8900.900
(b) Deferred tax liabilities (Net)	0.000	0.000	146.500
(c) Other long term liabilities	120.300	121.900	44.900
(d) long-term provisions	300.500	284.900	242.100
Total Non-current Liabilities (3)	8988.000	8148.700	9334.400
(4) Current Liabilities
(a) Short term borrowings	8846.100	8405.500	5769.900
(b) Trade payables	6558.500	7327.200	6253.100
(c) Other current liabilities	6393.100	4387.700	4070.100
(d) Short-term provisions	29.100	45.300	163.500
Total Current Liabilities (4)	21826.800	20165.700	16256.600
TOTAL	51635.000	49572.700	47828.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	24071.500	23896.500	24317.100
(ii) Intangible Assets	3.800	4.700	4.800
(iii) Capital work-in-progress	1461.000	1042.200	236.500
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2278.100	1096.700	1096.700
(c) Deferred tax assets (net)	82.400	0.000	0.000
(d) Long-term Loan and Advances	1124.900	1228.800	926.800
(e) Other Non-current assets	482.800	482.800	482.800
Total Non-Current Assets	29504.500	27751.700	27064.700
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10346.400	9963.100	9251.600
(c) Trade receivables	9352.600	8769.800	8703.500
(d) Cash and cash equivalents	748.000	786.900	1043.800
(e) Short-term loans and advances	1664.200	2271.800	1735.200
(f) Other current assets	19.300	29.400	29.400
Total Current Assets	22130.500	21821.000	20763.500
TOTAL	51635.000	49572.700	47828.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	21262.400	25659.600	25486.500
		Other Income	108.700	98.900	504.100
		TOTAL (A)	21371.100	25758.500	25990.600
Less	EXPENSES
		Cost of Material Consumed	11212.400	13517.000	13791.400
		Changes in inventories of finished goods and work in progress	(611.300)	(197.700)	(1694.200)
		Employee Benefit Expenses	1365.300	1318.500	1254.700
		Other Expenses	8324.900	9772.800	9741.200
		Expenditure transfer to capital account / Capital work in progress	(155.200)	(44.200)	(19.800)
		TOTAL (B)	20136.100	24366.400	23073.300
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1235.000	1392.100	2917.300
Less	FINANCIAL EXPENSES (D)		2153.800	1818.700	1626.400
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(918.800)	(426.600)	1290.900
Less	DEPRECIATION/ AMORTISATION (F)		641.500	657.200	678.100
Less	EXCEPTIONAL ITEMS		1083.300	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(477.000)	(1083.800)	612.800
Less	TAX (H)		82.400	148.800	146.200
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(394.600)	(935.000)	466.600
	EARNINGS IN FOREIGN CURRENCY
		Export (FOB)	1518.300	2169.500	1535.369
		Income from engineering contracts	5.300	3.100	0.000
		Dividends	2.700	2.300	11.405
		Others	1.600	1.600	20.081
	TOTAL EARNINGS		1527.900	2176.500	1566.855
	IMPORTS
		Raw Materials	2960.400	3834.500	4684.074
		Stores, Spare Parts, Components and Fuel	391.800	615.900	538.177
		Goods for trade	2.000	0.000	63.028
		Capital Goods	249.700	424.500	15.914
	TOTAL IMPORTS		3603.900	4874.900	5301.193
	Earnings Per Share (Rs.)		(20.21)	(12.79)	6.38

QUARTERLY RESULTS

Particulars	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
	1^st Quarter	2^nd Quarter
Net sales	5970.100	6239.100
Total Expenditure	5487.900	5873.700
PBIDT (Excluding Other Income)	482.200	365.400
Other income	29.500	29.900
Operating Profit	511.700	395.200
Interest	616.500	569.800
Exceptional Items	(132.100)	(30.900)
PBDT	(236.900)	(205.500)
Depreciation	163.000	165.900
Profit Before Tax	(399.900)	(371.400)
Tax	(53.000)	(59.200)
Profit after tax	(346.900)	(312.200)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(346.900)	(312.200)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(1.85)	(3.63)	1.80
Net Profit Margin (PBT/Sales)	(%)	(2.24)	(3.64)	2.40
Return on Total Assets (PBT/Total Assets}	(%)	(1.03)	(2.28)	1.32
Return on Investment (ROI) (PBT/Networth)		(0.02)	(0.05)	0.03
Debt Equity Ratio (Total Debt /Networth)		0.84	0.76	0.66
Current Ratio (Current Asset/Current Liability)		1.01	1.08	1.25

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	787.500	787.500	787.500
Reserves & Surplus	21449.700	20470.800	20032.700
Net worth	22237.200	21258.300	20820.200
long-term borrowings	8900.900	7741.900	8567.200
Short term borrowings	5769.900	8405.500	8846.100
Total borrowings	14670.800	16147.400	17413.300
Debt/Equity ratio	0.660	0.760	0.836

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	25486.500	25659.600	21262.400
		0.679	(17.137)

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	25486.500	25659.600	21262.400
Profit	466.600	(935.000)	(394.600)
	1.83%	(3.64%)	(1.86%)

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	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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Case Details

Bench:-Bombay

	Lodging No.:-	NMSL/714/2013	Filing Date:-	26/03/2013	Reg. No.:-	NMS/605/2013	Reg. Date:-	04/04/2013
Main Matter
	Lodging No.:-	SL/605/2010			Reg. No.:-	S/516/2010

Petitioner:-

MUMBAI INTERNATIONAL AIRPORT PRIVATE LIMITED

Respondent:-

MUKAND LIMITED AND 2 ORS. -

Resp.Adv.:-

N V SANGLIKAR FOR DEFT NO 1 (0)

District:-

MUMBAI

Bench:-	SINGLE
Status:-	Pre-Admission	Category:-	NOTICE OF MOTION.
Last Date:-	23/10/2013	Stage:-	NOTICE OF MOTION FOR HEARING [ORIGINAL SIDE MATTERS]

Act :-

Code of Civil Procedure 1908

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10442545	17/07/2013	750,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B81895773
2	10396621	31/12/2012 *	500,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B68239839
3	10389398	09/11/2012	80,000,000.00	WINRO COMMERCIAL (INDIA) LIMITED	209/210, ARCADIA BUILDING, 2ND FLOOR, PLOT NO. 195, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B62910583
4	10384912	22/10/2012	370,000,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA	B61470894
5	10379885	10/10/2012 *	500,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA	B61366357
6	10352896	15/04/2012	250,000,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA	B38653804
7	10353101	15/04/2012	250,000,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA	B38654703
8	10345594	03/04/2012	250,000,000.00	BAJAJ FINANCE LIMITED	4TH FLOOR, BAJAJ FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE, MAHARASHTRA - 411014, INDIA	B36301315
9	10303605	01/08/2011	175,000,000.00	BAJAJ FINANCE LIMITED	4TH FLOOR, BAJAJ FINSERV CORPORATE OFFICE, OFF. PUNE AHMEDNAGAR ROAD, VIMAN NAGAR, PUNE, MAHARASHTRA - 411014, INDIA	B19338664
10	10273919	16/06/2011 *	800,000,000.00	EXPORT IMPORT BANK OF INDIA	21 FLOOR, CENTRE ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	B14758445
11	10249773	23/10/2010	350,000,000.00	CORPORATION BANK	LARGE CORPORATE BRANCH, 301-302, EAGLES FLIGHT, SUREN ROAD, ANDHERI (E), MUMBAI, MAHARASHTRA - 400093, INDIA	A97753776
12	10193562	28/08/2013 *	2,750,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, CHANDER MUKHI BUILDING, GROUND FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B82931536
13	10163749	05/08/2009 *	1,000,000,000.00	CENTRAL BANK OF INDIA	CHANDERMUKHI, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A67443333
14	10153984	22/06/2010 *	234,214,817.00	BAJAJ AUTO FINANCE LIMITED	AKURDI PUNE-, MUMBAI - PUNE ROAD, PUNE, MAHARASHTRA - 411035, INDIA	A87782009
15	10024169	16/06/2007 *	500,000,000.00	DENA BANK	C-10, G BLOCK, BANDRA KURLA COMLEX, BANDRA(E), MUMBAI, MAHARASHTRA - 400051, INDIA	A18223248
16	90236515	07/02/2006	100,000,000.00	INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITE D	PLOT C-22;BANDRA KURLA COMPLEX, BANDRA, MUMBAI, MAHARASHTRA, INDIA	-
17	90232897	16/12/2005	354,300,000.00	CANARA BANK	CANARA BANK BUILDING, 2ND/3RD FLOOR; ADI MARZBAN PATH; BALLARAD ESTATE, MUMBAI, MAHARASHTRA - 400038, INDIA	-
18	90236490	16/12/2005	730,100,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER; 5TH FLOOR, CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA	-
19	80065070	11/09/2004	3,000,000,000.00	THE WESTERN INDIA TRUSTEE & EXECUTOR COMPANY LIMITED	161, MITTAL COURT-C JAMNALAL BAJAJ MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
20	80005610	05/03/2013 *	11,310,000,000.00	DENA BANK	C-10, G-BLOCK, CORPORATE BUSINESS BRANCH, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA - 400051, INDIA	B71068076

* Date of charge modification

GROSS SALES, SERVICES AND OTHER INCOME:

The gross sales from the operations and other income for the year was at Rs.23480.000 Millions as against Rs.28000.000 Millions in the previous year.

Revenues from exports went down at Rs.1518.300 Millions during the year as against Rs.2169.500 Millions in the previous year.

Loss for the year is reduced to Rs.394.600 Millions as against loss of Rs.935.000 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS:

GENERAL:

The year that is past will be remembered for the economic and political turmoil that engulfed most parts of the world. It will be remembered as a year that witnessed the economic decline of Europe and America and a sluggish performance by the BRIC nations which fell short of all optimistic predictions.

In India, rising fiscal deficits, adverse trade balance and continued inflation resulted in high interest rates and weakening of the Rupee. Uncertain political environment resulting in policy and regulatory delays in implementing reforms slowed down the economic growth. The industrial growth was at 0.9% during April-February 2013, even lower than 3.3% recorded during April-February 2008-09 (the year of financial crisis). In FY 13manufacturing grew at 1%, mining industry recorded a fall of 2.6% while the auto industry grew only by 3%.

In such an environment, the Company too witnessed a slowdown with its turnover and other income dropping to Rs.23480.000 Millions in the year as against Rs.28000.000 Millions in the previous year.

SPECIALTY STEEL DIVISION:

Subject is predominantly engaged in the business of special and alloy steel and stainless steel long products that feed into the auto components, engineering, defense and fasteners industries. The fortunes of this business are closely linked with the availability and prices of raw-materials, growth of the user industries and overall growth of the economy.

The utilization of steelmaking capacity at the Steel Plant at Ginigera continued to remain low for the year due to the paucity of iron ore supplies and steep increase in iron ore prices resulting from the continued partial ban on mining operations and transportation of iron ore in the state of Karnataka by the Hon’ble Supreme Court since July- August 2011. The resulting loss of production contributed mainly to the losses incurred by the Company during the year.

IRON ORE:

As per the Order by the Hon’ble Supreme Court in July-August

2011, a total of 166 iron ore mines were closed. After exhaustive investigations under the aegis of a committee appointed by the Hon’ble Supreme Court, the Court permitted re-opening of only 18 ‘Category A’ mines on 3rd September 2012 subject to the conditions laid down by the Court. By the end of March 2013, only 9 mines resumed mining operations of which one mine had to be closed down. There was thus only a marginal improvement in the availability of iron ore during the year under review.

At the beginning of the Financial Year 2012-13, it was expected that the balance ‘Category A’ and ‘Category B’ mines would reopen by the first half of 2012. Unfortunately, this did not happen and it was only in April 2013 that the Hon’ble Supreme Court permitted re-opening of the balance of ‘Category A’ and ‘Category B’ mines subject to specified conditions. The Court also simultaneously directed termination of mining leases of 49 ‘Category C mines’. The opening of the balance ‘Category A’ and ‘Category B’ mines will be a gradual process as each of the mines has to first obtain various approvals and implement a Reclamation and Rehabilitation Plan as approved by the competent authority.

The Hon’ble Supreme Court’s Order referred above, also lifted the ban on allocation of new mining leases by Government of Karnataka coupled with termination of leases for the 49 ‘Category C’ mines. These iron ore mines will now be available for new allotment to the steel plants and is expected to help them get mining leases for captive requirements.

With limited availability of high grade iron ore in the Supreme Court mandated e-auctions, the price of iron ore continued to remain high and the quality of available iron ore was also poor. The situation for subject was even more challenging as it can only use iron ore lumps which are in short supply and the prices of which too were much higher than iron ore fines. The Company’s need to reduce its dependence on iron ore lumps fructified in the second half of the year under report with the commissioning of the Sinter Plant which uses iron ore fines. Thus the company’s input cost for iron ore used in making steel will be lower during the year in progress.

INPUT PRICES:

On account of the recessionary conditions and slump in the industrial activity in Europe and lackluster growth in the United States of America, the commodity prices in general were subdued, crude oil prices moved down, coking coal prices softened, prices of nickel, scrap and other imported input commodities also declined. However, due to the depreciation of the Indian Rupee during the year, the benefits on account of reduced prices have partially been negated. In India, however, the prices of Ferrochrome high carbon, one of the major inputs for alloy and stainless steel production went up by about 11% during the year due to power cuts in the States of Orissa and Andhra Pradesh, where the manufacturing facilities of this input are located.

The Steel industry in India is largely dependent on imports of key inputs like coking coal, metallurgical coke, scrap, nickel and molybdenum. The prices of these inputs continue to remain volatile on the basis of global demand and supply factors and also, the highly volatile Rupee-Dollar exchange rate.

DEMAND:

The market for special carbon and alloy steel is expected to remain positive in the long run with the automobile sector expected to pick up momentum. Moreover, India is emerging as a major automobile hub for exports of vehicles as well as components. Emphasis on the development of the infrastructure segment by the Government is also likely to push up the demand for commercial vehicles.

The demand for bright bars and wires will increase considerably with the growth in automobile and engineering sectors and in view of this, subject entered into a Joint Venture with Sumitomo

Corporation, Japan to increase the output of bright bars and wires for which, the Company will supply larger quantities of wire rods and bars.

Subject expects prices of steel products to continue to be under pressure on account of the expansion in capacities by existing players, entry of new players in the alloy steel market and cheaper imports. The import duties on special and alloy steel are presently only at 5% and imports from the countries under the free trade agreement attract even a lower rate of 3% resulting in increased imports. Countries like China, Korea, Japan, Germany and France are stepping up their exports of steels to India to offset lower demand in other Asian and European countries. The sales of CHQ special steel wire rods were severely affected as the said segment was dominated by cheaper imports and stiff competition from domestic players.

The Indian auto industry grew by only 3% during the year as compared to 12% in the previous year. Several factors including high inflation, firm interest rates and rising fuel prices had a dampening effect on demand for automobiles. The growth rate of the sector however, is expected to improve in the year in progress to 6% to 8% and 9% to 11% in the long run. The growth of two-wheelers and low capacity vehicles (LCVs) is expected to grow rapidly.

The business of stainless steel long products largely depends on international markets. The markets in Europe and the USA are yet to emerge out of the recessionary conditions of the year 2008-09. This resulted in reduced off-take of stainless steel wire rods and bars by Indian producers manufacturing Bright Bars and Wires for export. Stiff competition from Indian producers as well as from international mills has put pressure on prices.

The demand for stainless steel is expected to grow at 6% to 8% per annum in the next five years. The demand for stainless steel in oil and gas sector has already revived. The investment made by subject in hardening, tempering and quenching facilities will provide better opportunities to cater to this market. The increase in demand for stainless steel may shoot up the present low nickel prices and slow-down the growth. The Company has developed new grades of wire rods and bars to widen its customer base.

The strategy for alloy and stainless steel business is to increase sale of high revenue contributing products, value added products and develop new products. The Company will widen its distribution network and tie up with automobile manufacturers who can take advantage of the Company being a one-stop-shop.

Exports of subject’s steel products were lower mainly on account of weak demand for the Company’s stainless steel long products in almost all the world markets due to global economic downturn and fluctuating Rupee-Dollar rate. Increase in import duty by Sri Lanka, the trade restrictions imposed by Argentina, dollar sales embargo with Iran, anti-dumping duties levied by the USA and European countries have reduced the exports of auto industry. Further, reduction in export incentives has brought down the export of steel and automobiles. The Government must come out with WTO compliant scheme and provide a level playing field to the exporters in the world market.

INDUSTRIAL MACHINERY DIVISION:

The division saw a decline in the turnover for the year.

Several major projects, particularly in the steel sector, did not pick up momentum during the year and also some customers delayed their committed delivery schedule requirements. Expected capital investments in the ferrous and non-ferrous sector were deferred, resulting in lower order booking for the division. At the end of the year, the division has orders aggregating to Rs.3860.000 Millions to be executed over FY 2013-14 and FY 2014-15.

Lower demand is likely to adversely affect the margins of the division. However the division initiated a number of cost reduction measures, including design changes so as to reduce input and operating costs. A 10% reduction in the costs has already been achieved during the year through improved design and better sourcing. These efforts will rigorously continue during the year in progress.

Infrastructure work on the land acquired at Sinnar for expansion of the Industrial Machinery division is in progress and production is expected to commence in a phased manner during the year in progress.

INTERNAL CONTROL SYSTEMS:

Adequate systems for internal controls provide assurances on the efficiency of operations, security of assets, statutory compliances, appropriate authorization, reporting and recording of transactions. The management audit prepares regular reports on the review of the systems and procedures. The scope of the audit activity is broadly guided by the annual audit plan approved by the Audit Committee of Directors. Audit reports are regularly reviewed by the top management and corrective measures are taken.

AWARDS:

Subject has for the second time, received SKF’s Supplier Excellence Award 2012 for the quality of the wires and wire rods for tapered roller bearings. The earlier award was received in 2009. Bajaj Auto Limited awarded subject its Quality Silver Award for the year 2012. Somic SF Components Ltd. too gave an award for quality and delivery.

Subject’s Steel Plant at Ginigera, Karnataka received safety awards instituted by the Government of Karnataka. These include first prize for ‘Best Worker in Large Scale Industry’ category for adopting Best Safe Practices in the year 2012.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Railway Siding

· Buildings and Roads

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Software

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

(Rs. In Millions)

	Particulars	Three Months Ended ( Unaudited)		Nine Months Ended ( Unaudited)
		31.12.2013	30.09.2013	31.03.2013
1	INCOME FROM OPERATIONS
a)	Gross Sales	6787.549	6868.206
	Less : Excise Duty Recovered	629.235	678.947	1959.194
	Net Sales	6158.314	6189.259
b)	Other Operating Income	41.208	49.820	187.212
	Total Income from Operations	6199.522	6239.079
2	EXPENSES
a)	Cost of materials consumed	3570.675	3075.472	9659.433
b)	Purchase of Stock in Trade	138.658		138.658
c)	Changes in inventories of finished goods and work-in-progress	(980.758)	(125.290)	(1356.433)
d)	Stores, Spares, Components,  Tools, etc. consumed	1067.231	982.259	3072.455
e)	Power & Fuel	542.727	4998.83	1530.497
g)	Employee benefits expense	371.849	3486.76	1068.879
h)	Depreciation and Amortisation expenses	167.052	1658.45	495.915
i)	Other Expenditure	963.601	10927.09	3089.993
	Total Expenses	5841.035	60395.54	17699.397
3	Profit/(Loss)  from Operations before Other Income , Finance Costs, & Net Exceptional income/ (Expenditure)	358.487	1995.25	716.901
4	Other Income [Refer Note 2]	229.727	482.18	289.097
5	Profit/(Loss) from Ordinary Activities before Finance Costs & Net Exceptional income/ (Expenditure)	588.214	2477.43	1005.998
6	Less : Finance Costs (net)	631.984	5881.90	1818.287
7	(Loss) from ordinary activities before Net Exceptional income / (Expenditure)	(43.770)	(340.447)	(812.289)
8	Net Exceptional Income / (Expenditure) [Refer Note 3]	(108.629)	(30.939)	(111.428)
9	Profit / (Loss) before Tax	(152.399)	(371.386)	(923.717)
10	Less : Tax Expense [(Deferred Tax Credit) / Charge]	(19.289)	(59.200)	(131.489)
11	Profit/ (Loss) after Tax	(133.110)	(312.186)	(792.228)
	Paid-up Equity Share Capital                                        (Face value Rs 10/- per share)	731.257	731.257	731.257
	Reserves (excluding Revaluation Reserve)
	Earnings per Share (EPS)  - Rs
	Basic and Diluted EPS (in Rs.)
	- Including exceptional items	(1.82)	(4.27)	(10.84)
	- Excluding exceptional items	(0.33)	(3.85)	(9.31)
	Part - II
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of Shares
	Percentage of Shareholding	45.67%	46.28%	45.67%

Disclosure in respect of pledged shares of Promoters and Promoter Group

Shares held by Promoters & Promoter Group - Nos. (A)
Percentage of Total Share Capital	54.33%	53.72%	54.33%
Pledged / Encumbered - No. of Shares
Percentage of Total Share Capital	19.66%	22.01%	19.66%
Percentage of (A)	36.20%	40.96%	36.20%
Non Encumbered - No. of Shares
Percentage of Total Share Capital	34.67%	31.71%	34.67%
Percentage of (A)	63.80%	59.04%	63.80%

		Quarter ended 31-12-13
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	18
	Disposed off during the quarter	18
	Remaining unresolved at the end of the quarter	Nil

SEGMENT REVENUE (Net of Excise Duty)

(Rs. In Millions)

	PARTICULARS	31-Dec-13	30-Sep-13	31-Dec-13
1	Steel	5908.937	5753.788
2	Power Generation	128.517	108.039	345.152
3	Industrial Machinery	299.779	508.784	1147.093
4	Road Construction	0.005		12.891
	Sub-total	6337.238	6370.611
	Less : Inter Segment Revenue	(137.716)	(131.532)	(385.062)
	Total Segment Revenue  (net of Excise Duty)	6199.522	6239.079
	SEGMENT RESULT
1	Steel	183.778	(0.143)	175.977
2	Power Generation	116.770	950.77	308.300
3	Industrial Machinery	106.096	1436.99	365.334
4	Road Construction	(16.939)	(11.190)	(50.332)
	Less : Inter  segment margin	(0.989)	(3.420)	(5.222)
	Total Segment Result	388.716	224.023	794.057
	Add / (Less) :
	Other net un-allocable :
	Income	229.727	48.218	289.097
	Expenditure	30.229	24.498	77.156
	Other net un-allocable (expenditure) / income	199.498	23.720	211.941
	Profit /(Loss) before Finance costs	588.214	247.743	1005.998
	Less : Finance costs  (net)	631.984	588.190	1818.287
	Net Exceptional - Income / (Expenditure)	(108.629)	(30.939)	(111.428)
	Profit / (Loss) before tax	(152.399)	(371.386)	(923.717)
	Capital Employed as on
1	Steel
2	Power Generation	460.300	464.982	460.300
3	Industrial Machinery	4990.276	4920.857	4990.276
4	Road Construction	1380.274	1396.936	1380.274
5	Unallocable (net)	(19531.713)	(19055.596)	(19531.713)
	Total Net Capital Employed	20339.845	20134.554	20339.845

NOTES:

1. Management's response to the qualifications / observations of the auditors on the financial statements for the year ended 31.03.2013 :

a. Advances due from and investments made in Vidyavihar Containers Limited (VCL), aggregating Rs.763.700 Millions as at 31st March 2013 remains same as at 31st Dec. 2013. The Company, barring unforeseen circumstances, relies upon the estimation of future realizable values of the financial assets of VCL to recover its Exposures;

b. Investments made in Mukand Global Finance Limited (MGFL), aggregating Rs.262.500 Millions as at 31st March 2013 remains same as at 31st Dec. 2013. The recovery out of this investment is dependent upon realization of the financial assets that MGFL stands invested into at the close of the year and future earnings from the business activities of MGFL. The management considers the 'Exposure' to be 'Good' and adequately covered. Any ultimate shortfall if any, in the realization is not determinable at present.

c. The investments in and debts / advances due from Bombay Forgings Limited (BFL), which stood at Rs.765.100 Millions as at 31.03.2013 has increased to Rs.854.700 Millions as at 31.12.2013 due to current supplies on credit. Recovery towards these supplies will be made by 31st March 2014. The management, considering its long term view on the 'Exposures' relies upon the valuation of unencumbered fixed assets of BFL as at 31st March, 2013 which is at Rs.718.900 Millions, value of current assets and future earnings from the ongoing business of BFL. The management considers the balance 'Exposures' to be 'Good' at the close of the year and adequately covered and barring unforeseen circumstances expects full realisability of the same in future.

d. Debts / advances recoverable from Stainless India Limited (SIL), which aggregated Rs.141.100 Millions as at 31st March 2013, has reduced to Rs.777 Lakhs as at 31.12.2013. The management relies upon the proceeds from disposal of Land and Building of SIL as at 31.03.2013. The management considers the balance 'Exposures' to be 'Good' at the close of the quarter and adequately covered and barring unforeseen circumstances expects full realisability of the same in future.

e. The Company in previous years executed road construction projects in the state of Uttar Pradesh with National Highway Authority of India (NHAI) along with Centrodorstroy (CDS), Russia. The exposure on this account as at 31.03.2013 aggregated Rs.1416.800 Millions (represented by contracts in progress Rs.800.200 Lakhs and trade dues of Rs.616.600 Millions) and is now at Rs.1369.800 Millions as at 31.12.2013 (represented by contracts in progress Rs.753.800 Millions and trade dues of Rs.616.000 Millions). Although the outcome of the Road Construction activity cannot be estimated with reliability at present, it is the opinion of the management that in view of the substantially large claims aggregating Rs.1617.300 Millions as at 31.12.2013 (amount as at 31.03.2013 Rs.1643.300 Millions) of CDS for incremental jobs executed, escalations and time over-runs to be settled progressively over a period of 2 to 3 years, losses currently expected are already recognized till the close of the Quarter.

2. Other income includes surplus amounting to Rs.184.400 Millions on sale of residential premises.

3. Net Exceptional Expenditure of Rs.108.600 Millions represents :

a. Adhoc amount payable to CDR Lenders amounting to Rs.31.1000 Millions: During the quarter ended 30th June 2013, the Company arrived at settlement with the Corporate Debt Restructuring members for an adhoc amount of Rs.249.000 Millions payable in monthly installments till the maturity of the loans without any further interest thereon. This settlement was arrived at to compensate the Lenders for the lower interest charged by them during the period FY 2002-03 to FY 2011-12. A proportionate charge of Rs.31.100 Millions has been made in the current Quarter.

b. Provision for diminution in value of investment in the shares of Bekaert Wire Industries Private Limited amounting to Rs.77.500 Millions as company sold its entire shareholding costing Rs.130.000 Millions in its erstwhile joint venture company on January 11, 2014 for Rs.52.500 Millions to Bekaert Industries Private Limited.

4. In respect of issue of equity shares on a Rights basis at an issue price of Rs.21/- per share in the ratio of 1:1 to the existing equity shareholders of the Company, letter of offer has been filed with the Stock Exchanges on 30th January, 2014 with record date for rights entitlement fixed as 11th February, 2014. The issue is scheduled to open on 20th February, 2014 and close on 6th March, 2014.

5. Figures for the corresponding nine months ended 31st December 2012 includes business of cold finished bars and wires upto 30th September 2012, which was subsequently transferred to the subsidiary and hence the figures are not comparable.

6. Figures in respect of previous year / quarter have been regrouped / recast wherever necessary.

7. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 13th February, 2014. Statutory Auditors have carried out a "Limited Review" of the financial results shown above.

PRESS RELEASE

MUKAND SELLS ENTIRE STAKE IN ITS JV COMPANY FOR RS.52.500 MILLIONS

Mukand Limited has informed BSE that the Company vide Share Purchase Agreement dated January 11, 2014, has sold its entire shareholding in its erstwhile Joint Venture company viz. Bekaert Mukand Wire Industries Fvt. Limited i.e. 1,30,00,000 equity shares acquired at a cost of Rs.130.000 Millions to Bekaert Industries Private Limited for a sale consideration of Rs.52.500 Millions.

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.61.53
UK Pound	1	Rs.100.73
Euro	1	Rs.83.84

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	NKT

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	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.