MIRA INFORM REPORT

Report Date :

29.05.2014

IDENTIFICATION DETAILS

Name :	WELSPUN STEEL LIMITED (w.e.f.26.05.2010)
Formerly Known As :	WELSPUN POWER AND STEEL LIMITED
Registered Office :	S N 650, Village Varsamedi, Taluka Anjar, District Kutch - 370110, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.06.2004
Com. Reg. No.:	04-044249
Capital Investment / Paid-up Capital :	Rs.1100.900 Millions
CIN No.: [Company Identification No.]	U27109GJ2004PLC044249
TAN No.: [Tax Deduction & Collection Account No.]	RKTW00058C
PAN No.: [Permanent Account No.]	AAACW5308G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of iron and steel products.
No. of Employees :	Informations denied by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 38210000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having a satisfactory track record. There appears continuous dip in the profit of the company. However, the company received good support from its group company. Trade relation are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	April 16, 2014

Rating Agency Name	CARE
Rating	Short term bank facilities A3+
Rating Explanation	Moderate degree of safety and higher credit.
Date	April 16, 2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DENIED

MANAGEMENT NON CO-OPERATIVE (91-2836-279051)

LOCATIONS

Registered Office/ Factory :	S N 650, Village Varsamedi, Taluka Anjar, District Kutch - 370110, Gujarat
Tel. No.:	91-2836-279051/ 53/ 54/ 55/ 56
Fax No.:	91-2836-279050
E-Mail :	secretariallegal@welspun.com dilip_chokhra@welspun.com wpslanjar_gov@welspun.com rashmi_mamtura@welspun.com
Website :	www.welspunsteel.com
Corporate Office :	Welspun House, 7^th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India.
Tel. No.:	91-22-66136000
Fax No.:	91-22-24908020
Branch Office 1 :	23 HIG, BDA Housing Complex, Gangadhar Meher Nagar, Jayadev Vihar, Bhubaneshwar - 751013, Orissa, India
Tel. No.:	91-674-2300223
Fax No.:	91-674-2300224
Branch Office 2:	GIDC Industrial Estate, Valia Road, Jagadia, District Bharuch, Gujurat, India
Tel. No.:	91-2645-226305/6/7
Fax No.:	91-2645-220403

DIRECTORS

As on 30.09.2013

Name :	Mr. Sitaram Damodardas Somani
Designation :	Director
Address :	N-8/18 Ganpati Niwas, Bangur Niwas Building, Goregaon (West), Mumbai - 400090, Maharashtra, India.
Date of Birth/Age :	23.01.1948
Qualification :	C.A
Date of Appointment :	22.03.2006
DIN No.:	00005017
Name :	Mr. Rajesh Rameshkumar Mandawewala
Designation :	Director
Address :	161/171-B, Opposite Sidhivinayak Temple, Tanna Residency, Prabhadevi, Mumbai - 400025, Maharashtra, India
Date of Birth/Age :	05.05.1962
Qualification :	F.C.A
Date of Appointment :	01.09.2006
DIN No.:	00007179
Name :	Mr. Atul Manubhai Desai
Designation :	Director
Address :	C/62, Vellard View, 14, Tardeo Road, Haji Ali, Mumbai – 400034, Maharashtra, India
Date of Birth/Age :	21.01.1950
Date of Appointment :	29.09.2012
DIN No.:	00019443
Name :	Mr. Ram Gopal Sharma
Designation :	Director
Address :	E-707, Military Road, Off Marol Maroshi Road, Lok Sarita Building, Andheri (East), Mumbai - 400059, Maharashtra, India
Date of Birth/Age :	11.09.1940
Qualification :	B.com, M.A (Economics)
Date of Appointment :	10.05.2006
DIN No.:	00026514
Name :	Mr. Balkrishan Gopiram Goenka
Designation :	Director
Address :	Rocky Isle 46/C, Bhulabhai Desai Road, Breach Candy, Mumbai - 400026, Maharashtra, India
Date of Birth/Age :	15.08.1965
Qualification :	B. Com
PAN No. :	AEOPG4891D
Date of Appointment :	03.06.2004
DIN No.:	00270175
Name :	Mr. Anuj Burakia
Designation :	Director
Address :	B-108, NU-10B, Shakti Nagar, Gandhidham – 370201, Gujarat, India
Date of Birth/Age :	27.06.1979
Qualification :	C.A
PAN No. :	AGCPB8871E
Date of Appointment :	28.12.2011
DIN No.:	02840211

KEY EXECUTIVES

Name :	Ms. Rashmi Donesh Mamatura
Designation :	Secretary
Address :	B-2, Ekvira Niwas, Bhnadar Wada, Pannalal Ghosh Marg, Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	23.01.1987
Date of Appointment :	31.10.2011
PAN No.:	BAHPM5142B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	%age
Krishiraj Trading Limited, India	54350100	49.37
Welspun Finance Limited, India	10000	0.01
Welspun Mercantile Limited, India	6659600	6.05
Welspun Fintrade Limited, India	40950000	37.20
Welspun Wintex Limited, India	2120000	1.93
Goldenarch Estates Private Limited, India	1000000	0.91
Welspun Investments and Commercials, India	5000000	4.54
Welspun Zucchi Textiles Limited, India	100	0.00
Welspun Syntex Limited, India	100	0.00
Welspun India Limited, India	100	0.00
Total	110090000	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of iron and steel products.

Products :

Product Description	ITC No.
Sponge Iron	7203
Rolled Products	7213
Steel Ingots	7206

GENERAL INFORMATION

No. of Employees :

Informations denied by the management

Bankers :

· Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad - 380006, Gujarat, India

· Andhra Bank, 16B, 16th Floor, Earnest House, 194, NCPA Marg, Nariman Point, Mumbai - 400021, Maharashtra, India

· Punjab National Bank, IIIaco House, Sir P. M. Road, Fort, Mumbai - 400001, Maharashtra, India

· Axis Bank Limited

· ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· State Bank of Saurastra

· Yes Bank

· State Bank of Travnacore

· State Bank of Indore

· State Bank of Patiala

· IDBI Bank Limited

· State Bank of Bikaner and Jaipur

· Kotak Bank

· United Bank of India

· Vijya Bank

· Indusind Bank Limited

· Andhra Bank

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loan from bank	2025.000	2250.000
Foreign currency term loan from bank	271.425	381.562
SHORT TERM BORROWINGS
Loans repayable on demand from bank	271.513	349.049
Total	2567.938	2980.611

Banking Relations :	--
Financial Institutions :	· IDBI Trusteeship Services Limited, Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India · Sbicap Trustee Company Limited, 202, Maker Tower, 'E', Cuffe Parade, Colaba,, Mumbai - 400005, Maharashtra, India
Auditors :
Name :	Suresh Surana and Associates Chartered Accountants
Address :	B-301 Mehvish Tower Patel Complex Mira Village Mira Road (East), District Thane Mira Road, Thane– 401104, Maharashtra, India
PAN No.:	ABAPV2006L
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	· Welspun India Limited CIN No.: L17110GJ1985PLC033271 · Welspun Syntex Limited CIN No.: L99999DN1983PLC000045 · Welspun Corp Limited CIN No.: L27100GJ1995PLC025609 · Welspun Maxsteel Limited CIN No.: U27100GJ2008PLC064145 · Welspun Projects Limited CIN No.: L45201GJ1994PLC023920 · Remi Metals Gujarat Limited CIN No.: L27100GJ1993PLC020358 · Welspun Fintrade Private Limited CIN No.: U65910GJ1982PTC055383 · Welspun Logistics Limited U63012MH2006PLC165280 · Welspun Orissa Steel Private Limited CIN No.: U45400OR2007PTC015831 · Krishiraj Trading Limited CIN No.: U65990GJ1992PLC050965 · Welspun Energy Limited CIN No.: U51909GJ2002PLC041136 · Welspun Enterprises (Cyprus) Limited · Red Lebondal Limited
Subsidiary Company :	· PT. Bangun Energy Indonesia · Welspun Steel Resources Private Limited CIN No.: U27109GJ2009PTC055893 · Weslpun Natural Resources (Australia) Pty. Limited · Welspun Mineral Resources Private Limited CIN No.: U14298MH2010PTC209181
Associates :	· Welspun Captive Power Generation Limited CIN No.: U40100GJ2010PLC060502 · RMG Alloy Stel Limited CIN No. :L27100GJ1993PLC020358

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
110090000	Equity Shares	Rs.10/- each	Rs.1100.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1100.900	590.960	590.960
(b) Reserves & Surplus	8454.042	6789.225	6693.669
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	450.000
Total Shareholders’ Funds (1) + (2)	9554.942	7380.185	7734.629
(3) Non-Current Liabilities
(a) long-term borrowings	2996.425	2631.562	2678.531
(b) Deferred tax liabilities (Net)	229.073	60.693	0.000
(c) Other long term liabilities	63.625	0.000	0.000
(d) long-term provisions	4.452	4.658	3.772
Total Non-current Liabilities (3)	3293.575	2696.913	2682.303
(4) Current Liabilities
(a) Short term borrowings	291.513	349.049	95.654
(b) Trade payables	1772.445	1493.829	526.400
(c) Other current liabilities	1808.527	783.238	334.582
(d) Short-term provisions	0.638	15.051	666.376
Total Current Liabilities (4)	3873.123	2641.167	1623.012
TOTAL	16721.640	12718.265	12039.944
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3896.314	2072.200	1262.280
(ii) Intangible Assets	0.338	0.309	0.386
(iii) Capital work-in-progress	380.422	227.861	1050.006
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7998.739	6830.339	280.824
(c) Deferred tax assets (net)	0.000	0.000	21.982
(d) Long-term Loan and Advances	509.327	425.768	6781.030
(e) Other Non-current assets	66.651	57.139	37.959
Total Non-Current Assets	12851.791	9613.616	9434.467
(2) Current assets
(a) Current investments	53.151	20.486	50.129
(b) Inventories	1260.295	1164.881	841.624
(c) Trade receivables	425.891	279.175	251.027
(d) Cash and cash equivalents	577.718	428.759	82.768
(e) Short-term loans and advances	1262.404	1122.933	1359.130
(f) Other current assets	290.390	88.415	20.799
Total Current Assets	3869.849	3104.649	2605.477
TOTAL	16721.640	12718.265	12039.944

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4688.778	3034.169	5631.548
		Other Income	498.520	100.615	6853.642
		TOTAL	5187.298	3134.784	12485.190
Less	EXPENSES
		Cost of materials consumed	3314.271	2257.477	4525.084
		Purchase of stock-in-trade	260.653	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(139.673)	127.786	(98.528)
		Employee related expenses	128.489	63.150	129.816
		Other Expenses	822.737	282.430	1129.131
		TOTAL	4386.477	2730.843	5685.503
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		800.821	403.941	6799.687
Less	FINANCIAL EXPENSES		628.760	216.272	405.475
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		172.061	187.669	6394.212
Less/ Add	DEPRECIATION/ AMORTISATION		122.333	53.937	117.627
	PROFIT/ (LOSS) BEFORE TAX		49.728	133.732	6276.585
Less	TAX		39.055	38.175	132.707
	PROFIT/ (LOSS) AFTER TAX		10.673	95.557	5143.878
	Earnings / (Loss) Per Share (Rs.)		0.17	1.62	88.50

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.20	3.05	41.20
Net Profit Margin (PBT/Sales)	(%)	1.06	4.41	111.45
Return on Total Assets (PBT/Total Assets}	(%)	0.60	2.36	58.73
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	0.81
Debt Equity Ratio (Total Debt/Networth)		0.34	0.40	0.36
Current Ratio (Current Asset/Current Liability)		0.99	1.17	1.60

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	590.960	590.960	1100.900
Reserves & Surplus	6693.669	6789.225	8454.042
Net worth	7284.629	7380.185	9554.942
long-term borrowings	2678.531	2631.562	2996.425
Short term borrowings	95.654	349.049	291.513
Total borrowings	2774.185	2980.611	3287.938
Debt/Equity ratio	0.381	0.404	0.344

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	5631.548	3034.169	4688.778
		(46.122)	54.533

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	5631.548	3034.169	4688.778
Profit	5143.878	95.557	10.673
	91.34%	3.15%	0.23%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Current maturities of long term debts	360.713	127.188	101.219
Total	360.713	127.188	101.219

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

LISTING DETAILS:

HIGH COURT OF GUJARAT

STAMP NUMBER No. 251 of 2013

Status : PENDING CCIN No : 001087201300251 Last Listing Date :- Coram :
S.NO.	Name of the Petitioner	Advocate On Record
1	STATE OF GUJARAT THROUGH COMMISSIONER OF	GOVERNMENT PLEADER for: null 1

S.NO.	Name of the Respondant	Advocate On Record
1	WELSPUN STEEL LIMITED

Presented On	: 28/01/2013	Registered On	: 28/01/2013
Bench Category	: DIVISION BENCH	District	: SURAT
Case Originated From	: THROUGH ADVOCATE	Listed	: 0 times
Stage Name Classification Act	: ADMISSION (FRESH MATTERS) · DB OJ MISC. CIVIL APPLICATION - CODE OF CIVIL PROCEDURE, 1908 - EXTENTION OF TIME / CLARIFICATION · SALES TAX ACT, 1969

OTHER FORUMS

S.No.	CASEDETAILS	TRIBUNAL REFERRENCE	ORDER PASSED BY	JUDGEMENT DATE	PLACE
1	FA 27/2010	GUJARAT VALUE ADDED TAX TRIBUNAL, AHMEDABAD	PRESIDENT & MEMBER	27/12/2011	SURAT
OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	28/01/2013	VAKALATNAMA	GOVERNMENT PLEADER for PETITIONER(s) 1	5	GOVERNMENT PLEADER:1
2	28/01/2013	MEMO OF APPEAL/PETITION/SUIT	GOVERNMENT PLEADER for PETITIONER(s) 1	50	GOVERNMENT PLEADER:1
LINKED MATTERS

S. No.	CaseDetail	Status Name	Disposal Date	Action/Coram
1	CIVIL APPLICATION/94/2013	DISPOSED	08/03/2013	ANY OTHER MODE @ ADM.STAGE · HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Debenture	700.000	0.000
SHORT TERM BORROWINGS
Loans repayable on demand from other	20.000	0.000
Total	720.000	0.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10412421	11/02/2013	550,000,000.00	Standard Chartered Bank	Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad, Gujarat - 380006, INDIA	B70993001
2	10397245	15/12/2012	1,050,000,000.00	ANDHRA BANK	16B, 16TH FLOOR, EARNEST HOUSE, 194, NCPA MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	B65979957
3	10391122	26/11/2012 *	2,250,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B65694978
4	10395487	12/11/2012	300,000,000.00	Punjab National Bank	Ilaco House, Sir P M Road, Fort, Mumbai, Maharashtra - 400005, INDIA	B65317042
5	10355314	20/04/2012	200,000,000.00	PUNJAB NATIONAL BANK	ILACO HOUSE, SIR P M ROAD, MUMBAI, Maharashtra - 400001, INDIA	B39507462
6	10297842	25/08/2012 *	2,250,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B60210085
7	10269499	01/02/2011	900,000,000.00	STANDARD CHARTERED BANK	Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad, Gujarat - 380006, INDIA	B06622468
8	80011715	25/06/2013 *	2,670,120,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE,, COLABA, MUMBAI, Maharashtra - 400005, INDIA	B80248529
9	80011728	25/06/2013 *	2,670,120,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE,, COLABA, MUMBAI, Maharashtra - 400005, INDIA	B80078538
10	80011722	28/06/2005 *	266,000,000.00	PUNJAB NATIONAL BANK	ILLACO HOUSE, FORT, MUMBAI, Maharashtra - 400001, INDIA	-
11	80011726	24/01/2006 *	266,000,000.00	PUNJAB NATIONAL BANK	ILLACO HOUSE, FORT, MUMBAI, Maharashtra - 400001, INDIA	-

* Date of charge modification

FIXED ASSETS

• Freehold Land
• Lease Hold Improvement
• Building
• Plant and Machinery
• Officer Equipments
• Furniture and Fixtures
• Vehicle
• Power Plant

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.59.08
UK Pound	1	Rs.99.20
Euro	1	Rs.80.53

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KAR
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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

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

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

RATING EXPLANATIONS

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

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

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