MIRA INFORM REPORT

Report No. :	330610
Report Date :	08.07.2015

IDENTIFICATION DETAILS

Name :	B.M.M. ISPAT LIMITED
Formerly Known As :	B.M.M. IRONORE PRIVATE LIMITED
Registered Office :	#114, Danapur Village, Hobli Marrimanahalli, Hospet Taluq, Bellary District, Karnataka – 583222
Tel. No.:	91-80-414956601/3
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.04.2002
Com. Reg. No.:	08-030365
Capital Investment / Paid-up Capital :	Rs. 1040.418 Million
CIN No.: [Company Identification No.]	U13100KA2002PLC030365
IEC No.:	0704018241
TAN No.: [Tax Deduction & Collection Account No.]	BLRB05074G
PAN No.: [Permanent Account No.]	AACCB3556B
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Subject is engaged in the manufacturing and selling of steel and allied products and generation of power.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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 was established in the year 2002 and it is engaged in beneficiation of iron ore, production of iron ore pellets, sponge iron, steel ingots, and long steel products. It is a company having satisfactory track record. For the financial year ended 2014, company reported healthy operational risk profile and achieved 11.07% topline growth along with 1.46% profitability margins. Rating also takes into consideration company sound financial risk profile marked by adequate net worth base and sound debt protection matrics of the company. Trade relations are reported as fair. Payment terms are reported to be usually correct. In view of aforesaid, 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	ICRA
Rating	Term Loan Facilities= “BB+”
Rating Explanation	Inadequate-credit-quality and high credit risk.
Date	March, 2015

Rating Agency Name	ICRA
Rating	Non-fund based facilities = “A4+”
Rating Explanation	Minimal degree of safety and very high credit risk
Date	March, 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 31-03-2013.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Shivam Agarwal
Designation :	Assistant Manager
Contact No.:	91-80-414956601
Date :	07.07.2015

LOCATIONS

Registered Office / Factory :	114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District – 583 222, Karnataka, India
Tel. No.:	91-80-414956601/3
Fax No.:	91-80-41495664
E-Mail :	suman@bmm.in anilagarwalanil@rediffmail.com
Website :	http://www.bmm.in
Location :	Owned
Corporate Office :	101, 1st Floor, Pride Elite, No.10, Museum Road. Bangalore – 560001, Karnataka, India.
Tel. No.:	91-80-41495660/ 1/ 3
Fax No.:	91-80-41495663/ 4
E-Mail :	bmmco@bmm.in bmmplant@bmm.in
Website :	www.bmm.in

DIRECTORS

As on: 30.09.2014

Name :

Mr. Dinesh Kumar Singhi

Designation :

Managing Director

Address :

No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

14.01.1971

Qualification :

B.E.(Mech)

Date of Appointment :

30.04.2012

PAN No.:

AAMHS2836L

DIN No.:

00208064

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	U13201KA1999PTC024827	H.K.T. MINING PRIVATE LIMITED	Managing director	30/04/2007	26/02/1999	-	Amalgamated	NO
2	U67120KA1999PTC025712	SINGHI FINLEASE PRIVATE LIMITED	Director	15/09/1999	15/09/1999	-	Active	NO
3	U67120KA2001PTC028490	SNEHFIN INVESTMENTS PRIVATE LIMITED	Director	22/01/2001	22/01/2001	-	Active	NO
4	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Managing director	30/04/2012	15/04/2002	-	Active	NO
5	U01010KA2004PTC033519	SHREE GAVISIDDESHWARA MINERALS PRIVATE LIMITED	Director	02/04/2007	16/11/2004	-	Strike off	NO
6	U70101KA2005PTC037125	SHRAVANEE PROPERTIES PRIVATE LIMITED	Director	02/09/2005	02/09/2005	-	Active	NO
7	U45203KA2006PTC040944	RANJITPURA INFRASTRUCTURE PRIVATE LIMITED	Director	28/09/2007	03/08/2007	-	Active	NO
8	U67120KA2007PTC043709	SINGHI HOLDINGS PRIVATE LIMITED	Director	27/08/2007	27/08/2007	-	Active	NO
9	U40300KA2007PLC043746	BMM Cements Limited	Director	02/05/2013	30/08/2007	-	Active	NO
10	U70101KA2007PTC041769	SNEH SHELTERS PRIVATE LIMITED	Director	26/09/2009	02/09/2008	-	Active	NO
11	U74899DL1995PTC070930	B. P.O .FINANCE AND INVESTMENTS PRIVATE LIMITED	Additional director	11/09/2009	11/09/2009	03/05/2010	Active	NO
12	U70101WB1986PTC101350	PANCHMUKHI PROPERTIES Private LIMITED	Additional director	11/09/2009	11/09/2009	03/05/2010	Active	NO
13	U40100KA2010PTC055239	BMM ENERGY PRIVATE LIMITED	Director	21/09/2010	21/09/2010	-	Active	NO
14	U70100KA2012PTC065798	BMM CONSTRUCTION & PROJECTS PRIVATE LIMITED	Director	07/09/2012	07/09/2012	-	Active	NO

Name :

Mrs. Snehalatha Singhi

Designation :

Director

Address :

No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

08.12.1972

Qualification :

B. Com

Date of Appointment :

02.04.2012

PAN No.:

AJMPS0427Q

DIN No.:

00208131

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	U67120KA1999PTC025712	SINGHI FINLEASE PRIVATE LIMITED	Director	15/09/1999	15/09/1999	-	Active	NO
2	U67120KA2001PTC028490	SNEHFIN INVESTMENTS PRIVATE LIMITED	Director	22/01/2001	22/01/2001	-	Active	NO
3	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Whole-time director	02/04/2012	15/04/2002	-	Active	NO
4	U13201KA1999PTC024827	H.K.T. MINING PRIVATE LIMITED	Director	06/05/2003	06/05/2003	-	Amalgamated	NO
5	U01010KA2004PTC033519	SHREE GAVISIDDESHWARA MINERALS PRIVATE LIMITED	Director	16/11/2004	16/11/2004	-	Strike off	NO
6	U70101KA2005PTC037125	SHRAVANEE PROPERTIES PRIVATE LIMITED	Director	02/09/2005	02/09/2005	-	Active	NO
7	U14107KA2007PTC043429	LOKAPUR LIMESTONE MINING PRIVATE LIMITED	Director	20/07/2007	20/07/2007	-	Strike off	NO
8	U67120KA2007PTC043709	SINGHI HOLDINGS PRIVATE LIMITED	Director	27/08/2007	27/08/2007	-	Active	NO
9	U40300KA2007PLC043746	BMM Cements Limited	Director	10/08/2012	30/08/2007	-	Active	NO
10	U45203KA2006PTC040944	RANJITPURA INFRASTRUCTURE PRIVATE LIMITED	Director	25/09/2008	29/08/2008	03/02/2009	Active	NO
11	U70101KA2007PTC041769	SNEH SHELTERS PRIVATE LIMITED	Director	26/09/2009	02/09/2008	-	Active	NO
12	U74899DL1995PTC070930	B. P.O .FINANCE AND INVESTMENTS PRIVATE LIMITED	Additional director	11/09/2009	11/09/2009	03/05/2010	Active	NO
13	U70101WB1986PTC101350	PANCHMUKHI PROPERTIES Private LIMITED	Additional director	11/09/2009	11/09/2009	03/05/2010	Active	NO
14	U40100KA2010PTC055239	BMM ENERGY PRIVATE LIMITED	Additional director	03/09/2012	03/09/2012	-	Active	NO
15	U70100KA2012PTC065798	BMM CONSTRUCTION & PROJECTS PRIVATE LIMITED	Director	07/09/2012	07/09/2012	-	Active	NO

Name :

Mr. Laxmipat Dudheria

Designation :

Director

Address :

No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

24.08.1962

Qualification :

CA

Date of Appointment :

12.07.2004

DIN No.:

00300443

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	U67120KA2001PTC029030	VSL SECURITIES PRIVATE LIMITED	Director	21/05/2001	21/05/2001	-	Active	NO
2	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Director	12/07/2004	12/07/2004	-	Active	NO
3	U01010KA2004PTC033519	SHREE GAVISIDDESHWARA MINERALS PRIVATE LIMITED	Director	16/11/2004	16/11/2004	-	Strike off	NO
4	U45200KA2006PTC040470	VSL REALTIES PRIVATE LIMITED	Director	11/09/2006	11/09/2006	-	Active	NO
5	U14107KA2007PTC043429	LOKAPUR LIMESTONE MINING PRIVATE LIMITED	Director	20/07/2007	20/07/2007	-	Strike off	NO
6	U40300KA2007PLC043746	BMM Cements Limited	Director	30/08/2007	30/08/2007	-	Active	NO
7	U13201KA1999PTC024827	H.K.T. MINING PRIVATE LIMITED	Director	25/07/2008	07/01/2008	-	Amalgamated	NO
8	U51109WB1994PTC066645	POLSON TIE-UP PRIVATE LIMITED	Director	09/09/2009	09/09/2009	-	Active	NO
9	U40100KA2010PTC055239	BMM ENERGY PRIVATE LIMITED	Director	21/09/2010	21/09/2010	-	Active	NO

Name :

Mr. Mrutunjaya Senapati

Designation :

Director

Address :

002, Aster Block, Fantasy Gardens Apartments, 2nd Main, Kasturinagar, Bangalore-560043, Karnataka, India.

Date of Birth/Age :

15.05.1947

Qualification :

B.Sc. (Mechanical Engineering), MBA

Date of Appointment :

01.06.2012

PAN No.:

ABUPS2716C

DIN No.:

02167644

Name :

Mr. Subramaniyam Pratapgiri

Designation :

Director

Address :

10-28 Patel Nagar, P and T Colony, Dilsukhnagar, Hyderabad-500060, Andhra Pradesh, India

Date of Birth/Age :

25.09.1965

Date of Appointment :

26.07.2008

DIN No.:

00038729

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	U99999TG1996PLC025571	VALLOUREC HEAT EXCHANGER TUBES LIMITED	Director	06/04/2006	06/04/2006	31/03/2008	Active	NO
2	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Director	26/07/2008	09/08/2007	-	Active	NO
3	U92132TG2004PTC044170	DEEP ROOTS ENTERTAINMENT AND MOVIES PRIVATE LIMITED	Director	05/05/2008	05/05/2008	-	Active	NO
4	U40300KA2007PLC043746	BMM Cements Limited	Director	30/09/2013	02/05/2013	-	Active	NO

Name :

Mr. Bangalore Krishnamurthy Ganesh

Designation :

Whole-time director

Address :

Shashikiran, 1st Floor, Opposite Huda Park, 5^th Main, M J Nagar, Hospet, Karnataka – 583201, India

Date of Birth/Age :

07.05.1966

Date of Appointment :

19.09.2013

DIN No.:

02108349

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	U14219KA2005PTC036020	KOPPAL MINES AND MINERALS PRIVATE LIMITED	Director	27/06/2005	27/06/2005	05/05/2008	Active	NO
2	U13100KA2002PLC030365	B.M.M. ISPAT LIMITED	Whole-time director	19/09/2013	01/07/2013	-	Active	NO

KEY EXECUTIVES

Name :	Suman Bajoria
Designation :	Secretary
Address :	House No. 251, 1^st Floor, 24^th Main, 5^th Phase, J.P. Nagar, Bangalore, Karnataka, India
Date of Birth/Age :	04.04.1982
Date of Appointment :	19.03.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Dinesh Kumar Singhi	47624940
Snehlatha Singhi	68605
Singhi Finlease Private Limited, India	16227491
Snehfin Investment Private Limited, India	34660750
Singhi Holdings Private Limited, India	3115000
Laxmipat Dudheria	70000
Dinesh Kumar Singhi (HUF)	55000
BPO Finance and Investment Private Limited, India	722500
Panchmukhi Properties Private Limited, India	725000
VSL Securities Private Limited, India	150000
Devendra Contra Private Limited, India	630000
Xplosion Entertainment Private Limited, India	12500
Ashok Kumar	10
Silas Nerella	10
Prashant Rajaram Hegde	10
Lakshmnarayana G	10
Ediga Hemendra Goud	10
Parvathappa N	10
TOTAL	104061846

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	54.05
Directors or relatives of Directors	45.95
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing and selling of steel and allied products and generation of power.

Products :

PRODUCTS	ITEM CODE NO.
Iron Ore	26011130
Power	84101100
Sponge Iron	73071110
Iron Ore	26011130

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Products :

Raw material

Countries :

• Saudi Arabia
• Indonesia
• Australia

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Avani Resources Pte. Limited, Singapore
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Wholesaler and Retailer

Reference :	MFAR Construction Private Limited, Bangalore
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

1000 (Approximately)

Bankers :

• State Bank of India, Corporate Accounts Group Branch - 13039, "Ozone", 2nd Floor, #6-3-669, Punjagutta Main Road, Hyderabad - 500082, Andhra Pradesh, India
• Punjab National Bank, Large Corporate Branch, Centenary Building, No.28, M G Road, Bangalore - 560001, Karnataka, India
• Canara Bank, Prim Corporate Branch, 25, M.G. Road, Bangalore - 560001, Karnataka, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Rupee term loan from banks	17821.464	12440.171
Intercorporate borrowing	0.800	0.876
SHORT TERM BORROWING
Working capital loans from bank	832.322	1586.240
Other loans and advances	1333.804	609.662
Total	19988.390	14636.949

Banking Relations :	--
Financial Institute:	SBICAP Trustee Company Limited, 202, Maker Tower "E", Cuffe Parade, Mumbai, Maharashtra - 400005, India
Auditors :
Name :	T.D. Jain and D.I. Sakaria Chartered Accountants
Address :	No. 34, Keshava Nivas, 3rd Floor, 1st Main, Gandhinagar, 1st Main, Gandhinagar, Bangalore – 560009, Karnataka, India
PAN No.:	AAAFO2177L
Memberships :	--
Collaborators :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	ShravanI Constructions and Projects Singhi Finlease Private Limited, India [U67120KA1999PTC025712] Snehfin Investments Private Limited, India [U67120KA2001PTC028490] Singhi Holdings Private Limited, India [U67120KA2007PTC043709] BMM Cements Limited, India [U40300KA2007PLC043746] Shree Gavisiddeshwara Minerals Private Limited, India [U01010KA2004PTC033519] Sneh Shelters Private Limited, [U70101KA2007PTC041769] Shravanee Properties Private Limited, India [U70101KA2005PTC037125] Panchmukhi Properties Private Limited, India [U70101WB1986PTC101350] B. P.O .Finance and Investments Private Limited, India [U74899DL1995PTC070930] BMM Energy Private Limited, India [U40100KA2010PTC055239] Bharat Mines and Minerals Shri Gavisiddeshwara Minerals
Subsidiary company:	Ranj Itpura Infrastructure Private Limited, India [U45203KA2006PTC040944]

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
160000000	Equity Shares	Rs.10/- each	Rs. 1600.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
104041846	Equity Shares	Rs.10/- each	Rs. 1040.418 Million

AS ON: 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
160000000	Equity Shares	Rs.10/- each	Rs.1600.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
104061846	Equity Shares	Rs.10/- each	Rs.1040.618 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1040.418	1029.247	1029.248
(b) Reserves & Surplus	12666.857	12193.423	11850.539
(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)	13707.275	13222.670	12879.787
(3) Non-Current Liabilities
(a) long-term borrowings	18608.431	13883.821	11300.446
(b) Deferred tax liabilities (Net)	1524.079	1238.669	750.826
(c) Other long term liabilities	510.975	0.598	331.626
(d) long-term provisions	32.693	48.928	36.974
Total Non-current Liabilities (3)	20676.178	15172.016	12419.872
(4) Current Liabilities
(a) Short term borrowings	2445.853	2195.902	2145.386
(b) Trade payables	2360.866	1162.483	2064.365
(c) Other current liabilities	2545.199	1970.784	1844.122
(d) Short-term provisions	2.393	69.322	100.805
Total Current Liabilities (4)	7354.311	5398.491	6154.678
TOTAL	41737.764	33793.177	31454.337
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	23528.491	15073.460	11942.074
(ii) Intangible Assets	10.239	13.639	10.844
(iii) Capital work-in-progress	9162.932	10753.721	10215.449
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1152.894	764.190	871.788
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2408.715	1775.738	2220.863
(e) Other Non-current assets	12.020	9.046	1.465
Total Non-Current Assets	36275.291	28389.794	25262.483
(2) Current assets
(a) Current investments	0.000	50.000	5.000
(b) Inventories	2285.858	3032.068	1791.538
(c) Trade receivables	1119.639	1142.239	755.626
(d) Cash and cash equivalents	314.152	68.703	1094.231
(e) Short-term loans and advances	1394.968	922.028	2530.313
(f) Other current assets	347.856	188.345	15.146
Total Current Assets	5462.473	5403.383	6191.854
TOTAL	41737.764	33793.177	31454.337

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	18582.827	16748.262	14937.496
	Other Income	68.385	42.915	55.819
	TOTAL (A)	18651.212	16791.177	14993.315
Less	EXPENSES
	Cost of Materials Consumed	11604.850	9802.436	8074.151
	Purchases of Stock-in-Trade	463.049	359.423	66.658
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(19.530)	(204.645)	(10.132)
	Employees benefits expense	291.867	359.106	335.458
	Other expenses	2764.168	3229.055	2966.747
	TOTAL (B)	15104.404	13545.375	11432.882
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	3546.808	3245.802	3560.433
Less	FINANCIAL EXPENSES (D)	1289.757	991.906	648.51
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	2257.051	2253.896	2911.923
Less/ Add	DEPRECIATION/ AMORTISATION (F)	1768.409	1474.942	870.383
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	488.642	778.954	2041.540
Less	TAX (H)	272.137	436.070	545.979
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	216.505	342.884	1495.561
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	5098.712	11850.54	10072.23
	Balance Carried to the B/S (J+K+L-M)	5315.217	12193.424	11850.54
	EARNINGS IN FOREIGN CURRENCY	828.295	716.730	0.000
	Earnings / (Loss) Per Share (Rs.)	2.10	3.33	14.61

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	847.328	952.846	941.327
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	6654.184	938.536	3706.108

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.17	2.05	10.01
Operating Profit Margin (PBIDT/Sales)	(%)	19.09	19.38	23.84
Return on Total Assets (PBT/Total Assets}	(%)	1.56	3.50	10.02
Return on Investment (ROI) (PBT/Networth)		0.04	0.06	0.16
Debt Equity Ratio (Total Debt /Networth)		1.60	1.29	1.12
Current Ratio (Current Asset/Current Liability)		0.74	1.00	1.01

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	1029.248	1029.247	1040.418
Reserves & Surplus	11850.539	12193.423	12666.857
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	12879.787	13222.670	13707.275
long-term borrowings	11300.446	13883.821	18608.431
Short term borrowings	2145.386	2195.902	2445.853
Current maturities of long-term debts	941.327	952.846	847.328
Total borrowings	14387.159	17032.569	21901.612
Debt/Equity ratio	1.117	1.288	1.598

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	14937.496	16748.262	18582.827
		12.122	10.954

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	14937.496	16748.262	18582.827
Profit	1495.561	342.884	216.505
	10.01%	2.05%	1.17%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from Singhi Sadan, Infantry Road cantonment, Bellary - 583104, Karnataka, India to the present address w.e.f. 04.09.2006

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Loans and advances from directors	786.167	1317.174
Loans and advances from others	0.000	125.600
SHORT TERM BORROWING
Loans repayable on demand	279.726	0.000
Total	1065.893	1442.774

CORPORATE INFORMATION

Subject is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in the manufacturing and selling of steel and allied products and generation of power. The company caters to both domestic and international markets.

OVERVIEW AND REVIEW OF OPERATIONS

The gross turnover of the Company for the period under review was Rs. 20282.28 million. The company recorded a net revenue growth of 11.08% to Rs. 18,651.22 million from Rs. 16,791.18 million in the previous year due to increase in revenue generated from Power Sales post commissioning of 140 MW Power Plant. The EBITDA showed a growth of 2.47% at Rs.3,603.83 million in period under review, compared to Rs.3516.87 million in previous year. But the EBITDA margins decreased to 19.32% in FY 2013-14 compared to 20.94% at in FY 2012-13. The PBT margin decreased to 2.93% at Rs.545.66 million in FY 2013-14 compared to 6.25% at Rs. 1050.02 million in FY 2012-13 due to higher depreciation and interest costs. The PAT margins decreased to 1.47% at Rs.273.52 million in FY 2013-14 compared to 3.66% at Rs. 613.96 million in FY 2012-13.

The steel industry in Karnataka has been facing multiple challenges over the past few years due tonon-availability of raw materials and high input costs. The company also faced challenges of increased input costs, elevated interest rates and depreciating Rupee which affected the performance of the Company. Due to non-availability of good quality of iron ore, the Company operated its beneficiation and pellet plant at lower production level and was unable to achieve its revenue potential.

The beneficiated ore production was 15,06,257 MT, compared to 15,23,507 MT in previous year. Pellet production was 12,95,175 MT compared to 12,77,542 MT in previous year. Sponge iron production was 4, 88,391 MT compared to 5,45,203 MT in previous year. Billet production increased to 70,352 MT from 68,297 MT in the year and TMT production from Rolling Mill increased to 63,775 MT from 63,570 MT in the previous year. Power generated during the year was 147.2 MW against 64 MW in previous year.

Further to the search and seizure operations by Income tax authorities in July 2010 and receipt of demand tax notice by the Company and associate firm, the appeals made by the Company and the firm are pending for disposal before CIT (Appeals)VI.

The operations at iron ore mines of your Company’s group entity, M/s Shree Gavisiddeshwara Minerals did not commence during period under review.

Despite the multiple hurdles faced by the steel industry and the company, the future outlook looks positive due to improving macroeconomic scenario. The government is undertaking proactive policy initiatives for infrastructural development and industrial growth, which will accelerate steel demand in line with economic growth. However, concerns like poor availability of quality iron ore and fluctuation in coal prices needs to be addressed.

A detailed analysis of your Company’s operations, project review, financial review and analysis has been given in the Management Discussion and Analysis Report which forms part of the Annual Report as a separate section.

EXPANSION AND FUTURE BUSINESS PLAN

Taking into account of current market conditions pertaining to steel industry, the company has deferred some technological and infrastructural facilities to reduce capital cost, which in turn will reduce debt component. In view of slowdown of project investment due to lower internal accruals, the company has also deferred the Commercial Operations Date of the Project by one year with subsequent shift in loan repayment. The revised Commercial Operations Date of Phase III Project is 1st October 2015.

The company has received requisite sanctions from all its Lenders. The Company is taking all measures to put project on track and achieve Commercial Operations Date of the Project.

WORLD STEEL OUTLOOK

As per World steel association, Steel demand in CY 2014 is expected to increase by 3.6% to 1527 million tonnes following a growth of 3.6% in mCY 2013 and India's steel demand is expected to grow by 3.3% to 76.2 million tones in 2014, following a growth of 1.8 per cent in 2013 due to an improved outlook for construction and manufacturing sectors. Steel demand is expected to increase on account of an uptick in construction activities due to planned infrastructure growth, improvement in automobile and consumer durable sectors. Further, the Indian steel industry has tremendous potential for further growth as per capita steel consumption in India is lower than developed economies.

COMPANY OVERVIEW:

a. Analysis of Financial Performance

The year under review has been challenging for the company attributed by weak price trends, weakening of rupee, slower demand growth which has put pressure on operating profitability of steel sector and your company. The Company’s performance has been affected due to high raw material cost, increased interest cost and non-availability of quality iron ore. The company’s beneficiation and pellet plant production was at low level due to non-availability of good quality of iron ore.

b. Review of Financial Performance

Revenue: The net revenue of the company stood atRs.18651.22 million in FY 2013-14 compared to Rs.16791.18million in previous year, thus registering a growth of 11.08 % due to increase in revenue generated from Power Sales post commissioning of 140 MW Power Plant.

Raw Material Consumption Cost: Raw Material Consumption Cost increased 18.39% from Rs.9802.44 million in 2012-13 to Rs.11604.85 million in 2013-14, largely owing to increase in raw material prices. Coal and iron ore forms major raw material. Raw material consumption cost as a percentage of revenue, increased from 58.38% in 2012-13 to 62.22% in 2013-14. Traded goods purchases were Rs.463.05 million as compared to Rs.359.42 million in the previous year.

Employee Cost: Employee cost as a proportion of revenue was 1.56% as compared to 2.14% in the previous year. The employee cost decreased from Rs.359.11 million in 2012-13 to Rs. 291.87 million in 2013-14.

Manufacturing Expenses: Manufacturing Expenses decreased 10.88% from Rs.2430.46 million in 2012-13 to Rs.2165.99 million in 2013-14 and Manufacturing expenses as a proportion of revenue decreased from 14.47% in 2012-13 to 11.61% in 2013-14. This was mainly due to reduction in power and fuel expenses. Due to commissioning of coal gasifier, furnace oil consumption reduced drastically resulting in lower power and fuel expenses

Administrative, Selling and Distribution Expenses: The Administrative, Selling and Distribution Expenses Cost increased by Rs.13.63 million from Rs.527.53 million in 2012-13 toRs.541.16 million in 2013-14. However Administrative, Selling and General Expenses, as a proportion of revenue decreased to 2.90%, compared to 3.14% in previous financial year.

Share of Profit/Loss from Mining Firms: The share of loss from company’s associate mining firms is Rs. 57.01 million in 2013-14.

Depreciation: The depreciation on fixed assets has increased 19.90% from Rs.1474.94 million in 2012-13 to Rs.1,768.41 million in 2013-14 on account of capitalization of non ISP units of Phase III.

Financial Expenses: The financial expenses during the year has increased 30.03% from Rs.991.91 million in 2012-13 to Rs.1289.76 million in 2013-14, on account of increase in interest cost on term loan as well as due to increase in interest charged to Profit & Loss account, post commissioning of non ISP units of Phase III.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA): EBITDA (excluding share of profit/loss from investment in mining firms) of the company increased toRs.3,603.83 million in 2013-14 from Rs.3,516.87 million in 2012-13.But EBITDA margin for 2013-14 decreased from 20.94% to 19.32% due to high raw material consumption cost.

Profit before Tax (PBT):Profit before tax (excluding share of profit/loss from investment in mining firms) of the company decreased from Rs.1,050.02 million in 2012-13 to Rs.545.66 million in 2013-14,on account of higher depreciation and financial costs. PBT Margins reduced to 2.93% in 2013-14, compared to 6.25 % in 2011-12. Tax Expenses: Total tax expenses for 2013-14 is Rs.272.14 million.

Profit after tax: The Company has reported net profit after tax (excluding share of profit/loss from investment in mining firms) of Rs. 273.52 million as against Rs. 613.95 million during the previous year. Net Profit margins have declined from 3.66% in 2012-13 to 1.47% in 2013-14.

Equity Capital: The Company’s share capital comprised of 104,041,846 shares of Rs.10 each. The equity share capital of the company increased from Rs. 1029.25 million in 2012-13 to Rs. 1040.42 million in 2013-14 on account of issue of 1117081 equity shares

Reserves and surplus: Reserves and surplus increased 3.88% from Rs. 12193.42 million in 2012-13 to Rs.12666.86 million in 2013-14 owing to earnings retained in business and addition in securities premium account.

Borrowed Funds: The Company’s borrowed funds include secured and unsecured loans. The total loan increased 34.03% from Rs.13883.82 million in 2012-13 to Rs.18608.43 million in 2013-14 owing to further disbursement availed by the Company for ongoing Phase III expansion plan. Secured Loans comprising 95.77% of loan portfolio as on March 31, 2014 increased 43.25% from Rs.12441.05 million in 2012-13 to Rs.17821.46 million in 2013-14, owing to funds drawn for company’s ongoing expansion plan. Unsecured loan comprising 4.23% of loan portfolio as on March 31, 2014 decreased from Rs.1442.77 million in 2012-13 to Rs.786.97 million in 2013-14, on account of completion of bank loan obligation for previously completed projects.

Gross Block: The gross block has increased from Rs.18729.79 million in 2012-13 to Rs.28970.25 million in 2013-14, an increase of Rs.10240.46 million on account of capitalization of assets. CWIP stood at Rs.9,162.93 million in 2013-14.

Sundry Debtors: Debtors contributed to 20.50% of total assets as on March 31, 2014 and decreased by Rs. 22.60 million from Rs.1,142.24 million as on March 31, 2013 toRs.1119.64 million as on March 31, 2014 .

Inventories: Inventories contributed to 41.85 % of total assets as on March 31, 2013 and decreased 24.61% from Rs.3032.07million as on March 31, 2013 to Rs.2285.86 million as on March 31, 2014.

Short Term Loans and advances: The short term loans and advances as on 31st March 2014 stood at Rs.1394.97 million. Current Liabilities: The overall current liabilities increased 36.23% from Rs.7354.31 million as on March 31, 2013 to Rs.7354.31 million as on March 31, 2014

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

ECONOMY OVERVIEW

Globally, the Financial Year 2013-14 saw mild trends of macroeconomic recovery in several major economies, but on the domestic front, the Indian economy saw a subdued GDP growth at 4.7% and fiscal deficit of 4.6%. Growth rate continued to slide despite attempts made by RBI and the Government. Growth was impacted by high inflation, high interest rates, depreciating rupee, slowdown in investments and industrial expansion.

As per IMF, the world economy is projected to grow at 3.6%in CY 2014 up from 3% in CY 2013 and accelerate further to 3.9% in CY 2015. The Indian economy is also expected to perform comparatively well in the coming years. With a stable government at the centre, significant policy changes are anticipated in the near future. There are significant expectations from the new Government to pursue economic reforms, investments in infrastructure and an inclusive growth agenda to revive the economy. As per Economic survey by Government for FY 2014-15, the economy is likely to grow in the range of 5.4%-5.9% driven by focus on infrastructure revival, manufacturing growth, control on inflation. New policy trends could create greater opportunity for industry to grow and economy to prosper.

GLOBAL STEEL INDUSTRY OVERVIEW

World steel production recorded 1607 mega tonnes for CY 2013, up by 3.5% compared to 2012. The growth came from Asia and middle east while crude production in all other regions decreased in 2013, compared to 2012.Annual production for Asia was 1080.9 MT of crude steel in 2013, an increase in 6% compared to 2012.

The global steel demand which is dependent on economic growth grew by 3.6% to 1481 million tonnes. China’s global steel demand grew by 6.1% in 2013 compared to 2.9% in 2012 but demand in rest of world remained lower.

INDEX OF CHARGES:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10385982	09/09/2014 *	6,600,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS BRANCH, 2ND FLOOR,, OZONE BUILDING, #6-3-669, PUNJAGUTTA,, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	C23333941
2	10344921	05/03/2012	1,200,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH,, PARWAZ PLAZA, COLLEGE ROAD, HOSPET, KARNATAKA - 583201, INDIA	B36032670
3	10344922	05/03/2012	250,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, CENTENARY BUILDING, NO.28, M G ROAD, BANGALORE, KARNATAKA 560001, INDIA	B36033280
4	10341146	22/02/2012	1,500,000,000.00	CANARA BANK	PRIM CORPORATE BRANCH, 25, M.G. ROAD, BANGALORE,  KARNATAKA - 560001, INDIA	B34548677
5	10306952	20/09/2014 *	26,401,700,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER "E", CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA	C29444189
6	10206134	13/09/2013 *	1,981,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH - 13039, "OZONE", 2ND FLOOR, #6-3-669, PUNJAGUTTA MAIN ROAD, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	B86646569
7	10172529	07/11/2012 *	4,600,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH, PARWAJ PLAZA, COLLEGE ROAD, HOSPET, KARNATAKA - 583201, INDIA	B64329741
8	10255047	14/11/2009 *	900,000,000.00	STATE BANK OF INDIA	COLLEGE ROAD BRANCH, PARWAJ PLAZA, COLLEGE ROAD, HOSPET, KARNATAKA - 583201, INDIA	A80484983
9	80051743	14/02/2009 *	575,000,000.00	STATE BANK OF INDIA	STATION ROAD, HOSPET, KARNATAKA - 583201, INDIA	A56248057

*Date of charge modification

FIXED ASSETS

• Land and Land Improvements
• Freehold Land
• Building
• Office Equipments
• Plant and Machinery

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.63.57
UK Pound	1	Rs.98.22
Euro	1	Rs.69.93

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		48

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.