MIRA INFORM REPORT

Report No. :	316850
Report Date :	11.04.2015

IDENTIFICATION DETAILS

Name :	JSW STEEL (SALAV) LIMITED
Registered Office :	Welspun City, Village Versamedi, Taluka Anjar, Kutch Anjar – 370110, Gujarat
Tel. No.:	91-02-44-260110-119
Country :	India
Financials (as on) :	31.03.2013 (Welspun Maxsteel Limited)
Date of Incorporation :	27.06.2008
Com. Reg. No.:	04-064145
Capital Investment / Paid-up Capital :	Rs. 1338.224 Million
CIN No.: [Company Identification No.]	U27100GJ2008PLC064145
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCV7689R
Legal Form :	A Closely Held Public Limited liability Company.
Line of Business :	Manufacturer of Sponge Iron.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of JSW Group w.e.f. August 31, 2014 on the date which JSW Steel entered into a share purchase agreement to acquire sponge iron maker Welspun Maxsteel’s salav unit, in a deal worth over Rs.10000.000 Million. It is establishing itself under the new management and is expected to perform satisfactorily. Management has filed “Form 20B” depicting annual return for FY14, whereas failed to file any financials for the same year, with the statutory authorities for the reasons best known to them. So, the report contains the financial and holding information about the erstwhile company. As per indirect source i.e. CARE we found that the existing facilities under erstwhile Welspun Maxsteel Limited are entirely repaid. The ratings also take into consideration, the deal to be value accretive and adding synergies to the core business of steel by adding a backward integrated fully operational unit to the process which would stem in the raw material support for one of the JSW’s plant at Dolvi for sourcing raw material requirement i.e. sponge iron rather than buying it from open market, which would further cut costs and support margin. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of strong parentage and management, the company can be considered for business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities = AA- (Structured obligation)
Rating Explanation	High degree of safety regarding timely servicing of financial obligation and low credit risk
Date	February 18, 2015

Rating Agency Name	CARE
Rating	Short term bank facilities = A1+ (Structured obligation)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	February 18, 2015

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Satish Kunango
Designation :	Accounts Manager
Contact No.:	91-8805011377
Date :	10.04.2015

LOCATIONS

Registered Office :	Welspun City, Village Versamedi, Taluka Anjar, Kutch Anjar – 370110, Gujarat, India
Tel. No.:	91-02-44-260110-119
Mobile no. :	91-8805011377 (Mr. Satish Kunango)
Fax No.:	Not Available
E-Mail :	Lancy.varghese@jsw.in satish.kanungo@jsw.in
Website :	www.jsw.in
Corporate Office :	JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India

DIRECTORS

As On 25.09.2014

Name :

Mr.Jugal Kishore Tandon

Designation :

Additional Director

Address :

B-201 Mon Repos 45, H K Bhabua Road Lands’ End, Bandra (W), Mumbai, 400050, Maharashtra, India

Date of Appointment :

31.03.2015

DIN No.:

01282681

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L27310MH1991PLC175263	SOUTHERN IRON AND STEEL COMPANY LIMITED	Director	19/07/2007	27/03/2007	-	Amalgamated	NO
2	U13100TZ2005PLC011939	TAMILNADU IRON ORE MINING CORPORATION LIMITED	Director	22/09/2007	27/03/2007	-	Active	NO
3	U27106MH2007PLC170160	JSW Bengal Steel Limited	Director	20/09/2014	20/04/2007	-	Active	NO
4	U26957MH2006PLC160839	JSW CEMENT LIMITED	Director	13/08/2007	06/06/2007	26/12/2012	Active	NO
5	U27310MH2007PLC171405	JSW JHARKHAND STEEL LIMITED	Additional director	26/03/2015	07/06/2007	-	Active	NO
6	U74999MH2006PLC163924	JSW PROJECTS LIMITED	Director	22/11/2007	22/11/2007	21/02/2009	Active	NO
7	U45200MH2008PLC180608	JSW BUILDING SYSTEMS LIMITED	Director	28/03/2008	28/03/2008	23/04/2012	Amalgamated	NO
8	U13100KA1997PTC022398	VIJAYANAGAR MINERALS PRIVATE LIMITED	Director	23/05/2009	26/09/2008	23/09/2013	Active	NO
9	U85110KA1995PTC018868	JSW Praxair Oxygen Private Limited	Nominee director	30/09/2008	29/09/2008	09/03/2010	Active	NO
10	L74999MH1994PLC077041	JSW ENERGY LIMITED	Director	02/06/2009	23/10/2008	01/06/2010	Active	NO
11	U74900MH2010PLC202725	JSW TECHNO PROJECTS MANAGEMENT LIMITED	Director	31/10/2011	30/06/2011	20/02/2014	Active	NO
12	U27106MH1985PLC169768	MITTAL CORP LIMITED	Director	28/09/2012	03/09/2012	20/02/2014	Active	NO
13	U01010MH2003PLC176595	JSW STEEL PROCESSING CENTRES LIMITED	Additional director	26/03/2015	26/03/2015	-	Active	NO
14	U27100MH1985PLC037346	JSW STEEL COATED PRODUCTS LIMITED	Additional director	26/03/2015	26/03/2015	-	Active	NO
15	U23100MH1997PLC110901	AMBA RIVER COKE LIMITED	Additional director	31/03/2015	31/03/2015	-	Active	NO
16	U27100GJ2008PLC064145	JSW Steel (Salav) Limited	Additional director	31/03/2015	31/03/2015	-	Active	NO

Name :

Mr.Pradeep Bhargava

Designation :

Additional Director

Address :

House No. B-1402, Floor - 14, Building Simaran, Residency, Plot No. - 21, Sector - 7, Kharghar, Navi Mumbai, 410210, Maharashtra, India

Date of Appointment :

31.03.2015

DIN No.:

03628767

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U23201MH1997PLC110834	ISPAT ENERGY LIMITED	Director	25/09/2012	01/10/2011	-	Active	NO
2	U23100MH1997PLC110901	AMBA RIVER COKE LIMITED	Nominee director	18/09/2012	04/10/2011	-	Active	NO
3	U27100GJ2008PLC064145	JSW Steel (Salav) Limited	Additional director	31/03/2015	31/10/2014	-	Active	NO

Name :

Mr. Bhushan Lal Dewangan

Designation :

Whole-Time Director

Address :

B 1301, La Vista, 13th Floor, Plot No 256 and 257, Sector 10, Kharghar, Navi Mumbai, 410210, Maharashtra, INDIA

Date of Appointment :

01.03.2015

DIN No.:

07011510

Name :

Saswati Goswami

Designation :

B-710, Sicily Park, Sector-12b, Plot No.54, Koparkhairane, Navi Mumbai, 400709, Maharashtra, India

Address :

Additional Director

Date of Appointment :

31.03.2015

DIN No.:

07144843

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51900MH2014PTC257483	DOLVI MINERALS AND METALS PRIVATE LIMITED	Additional director	31/03/2015	31/03/2015	-	Active	NO
2	U27100GJ2008PLC064145	JSW Steel (Salav) Limited	Additional director	31/03/2015	31/03/2015	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Satish Kunango
Designation :	Accounts Manager
Name :	Mohan Narayan Budgude
Designation :	Chief Financial Officer
Address :	H No 16, Flat No 2800, Rutugandha HSC Society Maharashtra HSC Board, Yerwada, PUNE, 411006, Maharashtra, INDIA
Date of Appointment :	01.03.2015
PAN No.:	AAZPB5383J
Name :	Pradeep Kumar Gokhroo
Designation :	Chief Financial Officer
Address :	A-2 Welspun Baug, Village Salav, Raigad, 402202, Maharashtra, India
Date of Appointment :	09.06.2014
PAN No.:	AFEPG8956L

MAJOR SHAREHOLDERS

As on 25.09.2014

Names of Equity Shareholders	No. of Shares
Welspun Enterprises Limited, India	672426576
Welspun Corp Limited, India	236749881
Grasim Industries Limited, India	1391600
Dwarka Dass Rathi	1400
Sanjeev Bafna	1400
Pavan Kumar Jain	1400
Ashok Malu	1400
Hemant Kadel	1400
Ravindra Kastia	1400
Devendra Patil	1
Shashikant Thorat	1
Pradeep Joshi	1
Ravindra More	1
Rashmi Mamtura	1
Saji Padmanabhan	1
Rajendra Sawant	1
Total	910576464

Names of Preference Shareholders	No. of Shares
Welspun Enterprises Limited, India	3740000
Total	3740000

As on 25.09.2014

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 Sponge Iron.

Products :

Item Code No. (ITC Code)	Product Description
72031000	Sponge Iron

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cash and Credit (30 Days)

Purchasing :

Cash and Credit (30 Days)

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

· End Users and OEMs

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

200 (Approximately)

Bankers :

Banker Name	Canara Bank
Branch Address	85, maker Tower, F Wing, 20^th Floor Cuff Parade, Mumbai – 400005, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name	IDBI Trusteeship Services Limited
Branch Address	Ballard Estate, Mumbai
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit – Rs. 10940.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Million)	31.03.2012 (Rs. in Million)
LONG TERM BORROWINGS
Rupee term loans from banks	9507.979	6575.756
SHORT TERM BORROWINGS
Working Capital loans from banks	42.279	302.458
Total	9550.258	6878.214

Financial Institute	IDBI Trusteeship Services Limited Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate,, MUMBAI – 400001, Maharashtra, India
Facilities :	Cash Credit = Rs. 10940.000 Million (From IDBI Trusteeship Services Limited)
Auditors :
Name :	MGB and Company Chartered Accountants
Address :	Jolly Bhavan, 2, 1^st Floor, 7, New Marine Lines, Churchgat, Mumbai – 400020, Maharashtra, India
Tel. No.:	AAAFM5742R
Memberships :	Not Divulged
Collaborators :	Not Divulged
Holding Company :	Welspun Corp Limited Welspun Projects Limited Welspun Steel Limited Welspun Infratech Limited
Other Related Parties :	Welspun India Limited

CAPITAL STRUCTURE

As on 25.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000000	Equity Shares	Rs.10/- each	Rs.12000.000 Million
300000000	Preference Shares	Rs.10/- each	Rs. 3000.000 Million
	Total		Rs.15000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
910576464	Equity Shares	Rs.10/- each	Rs. 9105.765 Million
3740000	Preference Shares	Rs.10/- each	Rs. 37.400 Million
	Total		Rs. 9143.165 Million

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
268250000	Equity Shares	Rs.10/- each	Rs.2682.500 Million
3750000	Preference Shares	Rs.10/- each	Rs. 37.500 Million
	Total		Rs. 2720.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130082352	Equity Shares	Rs.10/- each	Rs. 1300.824 Million
3740000	Preference Shares	Rs.10/- each	Rs. 37.400 Million
	Total		Rs. 1338.224 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

(WELSPUN MAXSTEEL LIMITED)

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1338.224	1300.824	1300.824
(b) Reserves & Surplus	5694.801	1137.262	1841.355
(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)	7033.025	2438.086	3142.179
(3) Non-Current Liabilities
(a) long-term borrowings	10101.777	7125.536	7167.511
(b) Deferred tax liabilities (Net)	0.000	301.865	301.865
(c) Other long term liabilities	0.050	0.050	0.050
(d) long-term provisions	34.563	34.603	42.627
Total Non-current Liabilities (3)	10136.390	7462.054	7512.053
(4) Current Liabilities
(a) Short term borrowings	42.279	2302.458	2395.330
(b) Trade payables	2534.313	2543.328	5120.100
(c) Other current liabilities	187.894	426.045	326.160
(d) Short-term provisions	36.230	33.760	6.544
Total Current Liabilities (4)	2800.716	5305.591	7848.134
TOTAL	19970.131	15205.731	18502.366
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14705.644	6392.670	5771.747
(ii) Intangible Assets	3.816	7.156	8.826
(iii) Capital work-in-progress	79.989	2093.245	1749.523
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	29.906	29.906	29.906
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1975.980	2021.030	2778.744
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	16795.335	10544.007	10338.746
(2) Current assets
(a) Current investments	0.000	0.000	1294.573
(b) Inventories	2396.369	2368.616	3753.958
(c) Trade receivables	382.961	1472.360	2342.962
(d) Cash and cash equivalents	287.017	511.253	335.654
(e) Short-term loans and advances	107.447	287.964	322.309
(f) Other current assets	1.002	21.531	114.164
Total Current Assets	3174.796	4661.724	8163.620
TOTAL	19970.131	15205.731	18502.366

PROFIT & LOSS ACCOUNT

(WELSPUN MAXSTEEL LIMITED)

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	8948.369	7212.370	24227.575
	Other Income	263.361	318.049	356.360
	TOTAL	9211.730	7530.419	24583.935
Less	EXPENSES
	Cost of Materials Consumed	8649.403	6362.932	20279.199
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(215.907)	332.966	(161.943)
	Employees benefits expense	346.990	149.057	437.548
	Exceptional Items	493.992	0.000	0.000
	Other expenses	1048.934	849.812	1861.172
	TOTAL	10323.412	7694.767	22415.976
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(1111.682)	(164.348)	2167.959
Less	FINANCIAL EXPENSES	829.841	357.098	1223.652
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(1941.523)	(521.446)	944.307
Less/ Add	DEPRECIATION/ AMORTISATION	366.918	180.981	424.679
	PROFIT/ (LOSS) BEFORE TAX	(2308.441)	(702.427)	519.628
Less	TAX	(301.865)	1.665	243.666
	PROFIT/ (LOSS) AFTER TAX	(2006.576)	(704.092)	275.962
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(322.381)	381.712	105.750
	Balance Carried to the B/S	(2328.957)	(322.380)	381.712
	EARNINGS IN FOREIGN CURRENCY	935.497	755.775	3294.751
	Earnings / (Loss) Per Share (Rs.)	(15.43)	(5.41)	2.12

KEY RATIOS

(WELSPUN MAXSTEEL LIMITED)

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT / Sales)	(%)	(22.42)	(9.76)	1.14
Operating Profit Margin (PBDIT/Sales)	(%)	(12.42)	(2.28)	8.95
Return on Total Assets (PBT/Total Assets}	(%)	(11.62)	(5.37)	3.11
Return on Investment (ROI) (PBT/Networth)		(0.33)	(0.29)	0.17
Debt Equity Ratio (Total Debt /Networth)		1.44	3.87	3.04
Current Ratio (Current Asset/Current Liability)		1.13	0.88	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

(WELSPUN MAXSTEEL LIMITED)

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	1300.824	1300.824	1338.224
Reserves & Surplus	1841.355	1137.262	5694.801
Net worth	3142.179	2438.086	7033.025
long-term borrowings	7167.511	7125.536	10101.777
Short term borrowings	2395.330	2302.458	42.279
Total borrowings	9562.841	9427.994	10144.056
Debt/Equity ratio	3.043	3.867	1.442

YEAR-ON-YEAR GROWTH

(WELSPUN MAXSTEEL LIMITED)

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	24227.575	7212.370	8948.369
		(70.231)	24.070

NET PROFIT MARGIN

(WELSPUN MAXSTEEL LIMITED)

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	24227.575	7212.370	8948.369
Profit	275.962	(704.092)	(2006.576)
	1.14%	(9.76%)	(22.42%)

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Million)	31.03.2012 (Rs. in Million)
LONG TERM BORROWINGS
Deferred payment liabilities	593.798	549.780
SHORT TERM BORROWINGS
Rupee term loans from banks	0.000	2000.000
Total	593.798	2549.780

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10162078	16/05/2011 *	6,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	Asian Bldg., Ground Floor, 17, R.Kamani Marg, Ballard Estate, MUMBAI, Maharashtra - 400001, INDIA	B13845516

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Factory building
• Plant and equipment
• Other plant and equipment
• Furniture and fixtures
• Vehicles
• Motor vehicles

WEBSITE DETAILS:

Press Release:

JSW STEEL TO BUY WELSPUN MAXSTEEL FOR OVER RS. 10000.000 MILLION

August 18, 2014

Country's third largest steel maker JSW Steel today said it has entered into an agreement to acquire sponge iron maker Welspun Maxsteel in a deal worth over Rs.10000.000 Million.

This is the third big-ticket M and A deal in the past thirty days after Adani Power announced it was buying troubled Lanco Infra's Udupi power plant for Rs.60000.000 Million. This was preceded by Reliance Power signing a pact to acquire all the three hydroelectric power plants of Jaiprakash Associates Limited

Under the all-debt JSW Steel-Welspun Maxsteel deal, the steel maker will take over the debt of Welspun Maxsteel. 

In a statement issued on the buyout, the Sajjan Jindal-promoted company said it would acquire the entire equity shares held by Welspun Enterprises Limited in Welspun Maxsteel Ltd "for an enterprise value of Rs.10000.000 Million plus net current assets". 

Welspun Maxsteel has a debt of Rs.10300.000 Million on its books. 

The Welspun Group, owned by billionaire BK Goenka, had bought Vikram Ispat at Salav village in Raigad district of Maharashtra in May 2009 for Rs.10300.000 Million from the Aditya Birla Group. Goenka renamed the company as Welspun Maxsteel to integrate it with his flagship business of high-end pipes primarily used in the oil and gas industry. 

JSW Steel said the Welspun Maxsteel deal is subject to regulatory approvals and customary closing conditions as of August 31. 

When contacted, Welspun Group Chairman BK Goenka told PTI that the sale is an all-debt deal, but a win-win for both the parties. 

"We are quitting our steel-making business because it has no synergy with our core business. When we bought it in 2009, there was no issue with gas availability, but in the past few years we could not run the plant well due to paucity of gas. Therefore, the decision to exit," Goenka said. 

JSW Steel has an installed capacity of 14.3 million tonne per annum and is the third largest alloy maker in the country after Tata Steel and the state-run SAIL. However, its plants in Karnataka are running under stress due to non- availability of raw materials. 

JSW Steel has a strategic goal to enhance its steel production to 40 MT in the next decade. 

Welspun Maxsteel is situated in close proximity to JSW Steel's Dolvi unit, offering complimentary infrastructure and location to augment the current envisaged expansions at Dolvi, the company added. 

"This acquisition is value-accretive to JSW Steel due to synergies in supplying surplus pellets to Welspun Maxsteel and use of DRI from Welspun Maxsteel in the company's steel- making operations at the Dolvi plant," JSW Steel Joint Managing Director and Group CFO Seshagiri Rao said. 

JSW Steel shares at BSE today closed at Rs.1276.50 up 0.14 per cent compared to its previous closing.

Shares of Welspun Enterprises ended at Rs.256.75 down 4.77 per cent from its previous close.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.36
UK Pound	1	Rs. 91.60
Euro	1	Rs. 66.48

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	SUB
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--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		49

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.