MIRA INFORM REPORT

Report No. :	343302
Report Date :	30.09.2015

IDENTIFICATION DETAILS

Name :	JAYASWAL NECO INDUSTRIES LIMITED (w.e.f. 05.09.2007)
Formerly Known As :	JAYASWALS NECO LIMITED
Registered Office :	F-8, MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra
Tel. No.:	91-7104-237276
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	28.11.1972
Com. Reg. No.:	11-016154
Capital Investment / Paid-up Capital :	Rs.6386.258 Million
CIN No.: [Company Identification No.]	L28920MH1972PLC016154
IEC No.:	0388113758
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACJ3174F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject manufactures steel and steel products for manufacturing of automobiles, appliances, and other products, produces ferrous and non-ferrous castings for the railroad, automobile, construction, and valve manufacturing industries, and mines coal.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 63374800
Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject was established in year 1972 engaged in the mining operations of coal and iron. Its products include pig iron, billets, rolled products and sponge iron. The company business and financial profile impact due to recent de-allocation of the company’s three coal blocks by the Hon’ble Supreme Court (order dated September 24, 2014). With respect to the operational performance of 2015, company has reported 4.31% dip in its revenue profile, whereas profit of the company has drastically declined by 97% as compared to previous year operational performance. Rating weakness partially offset by company’s status as the third largest alloy steel player in the country backed by extensive industry experience of promoters in mining business. Trade relations are reported as fair. Payment terms are reported to be slow and delayed. In view of aforesaid, the company can be considered for business dealing with some caution.

NOTES :

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

ECGC Country Risk Classification List – 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 =BBB- (Suspended)
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	August, 2015
Rating Agency Name	ICRA
Rating	Non fund based facilities =A3 (Suspended)
Rating Explanation	Moderate degree of safety and higher credit risk
Date	August, 2015

Reason for suspension: Absence of adequate information.

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 31-03-2015.

INFORMATION DECLINED BY

Name :	Mr. Ashutosh Mishra
Designation :	Company Secretary and Finance Controller
Contact No.:	91-7104-237276
Date :	25.09.2015

LOCATIONS

Registered/ Corporate Office :	F-8 MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra, India
Tel. No.:	91-7104-237276/ 237471/ 237472
Fax No.:	91-7104-237583/ 236255
E-Mail :	contact@necoindia.com
Website :	http://www.necoindia.com http://www.jayaswalneco.com
Manufacturing Facility :	Located at: · Steel Plant– Siltara Growth Centre, Raipur, Chhattisgarh, India · Centri cast Division–MIDC Area, Hingna Road, Nagpur, Maharashtra, India · Automotive Castings Division – MIDC Area, Hingna Road and Butibori, Nagpur, Maharashtra, India · Construction Castings Division – Light Industrial Area, Bhilai and Anjora (CG)
Branch Offices :	Located at: · Mumbai · Kolkata · Bhilai · New Delhi

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Basant Lall Shaw
Designation :	Chairman
Name :	Mr. B K Agrawal
Designation :	Director (Independent)
Name :	Mr. M M Vyas
Designation :	Director (Independent)
Date of Birth/Age :	07.10.1942
Qualification :	B.Sc.
Experience in Specific Functional Areas :	Experience in administration, Export Marketing and Liasoning with Government Agencies, Institutions and Banks for over 36 years and associated with business of Iron and Steel Casting and fitting over 23 years.
Date of Appointment :	26.02.1998
DIN No.:	00399012
Name :	Mr. P K Bhardwaj
Designation :	Executive Director and CFO
Name :	Mr. S N Singh
Designation :	Director (Independent)
Name :	Mr. P K Das
Designation :	Director (IDBI Bank Nominee)
Name :	Mr. D K Sahni
Designation :	Director (Independent)
Name :	Ms. Raji Nathani
Designation :	Director (Independent)
Name :	Mr. Arvind Iyer
Designation :	Director (Independent)
Date of Birth/Age :	27.03.1962
Qualification :	M.Com, MBA, ICWA
Experience in Specific Functional Areas :	Vast experience in planning and implementation of Projects and Operational expertise in manufacturing sector
Date of Appointment :	13.11.2014
DIN No.:	01375173
Name :	Mr. M P Singh
Designation :	Executive Director (Steel)
Date of Birth/Age :	22.03.1958
Qualification :	B.E. Metallurgy and Material Science
Experience in Specific Functional Areas :	Rich experience of about 35 years in almost all the functional areas of a Steel Plant.
Date of Appointment :	13.11.2014
DIN No.:	02635073
Name :	Mr. Ramesh Jayaswal
Designation :	Joint Managing Director
Date of Birth/Age :	02.02.1960
Qualification :	B.Com
Experience in Specific Functional Areas :	Associated with Iron and Steel business for over 26 years. Looks after the implementation of new projects and other allied matters.
Date of Appointment :	05.03.1983
DIN No.:	00249947
Name :	Mr. Arbind Jayaswal
Designation :	Managing Director
Date of Birth/Age :	26.11.1953
Qualification :	B.Sc.
Experience in Specific Functional Areas :	Associated with Iron and Steel business for over 36 years. Looks after the administrative, accounts, technical and other allied matters.
Date of Appointment :	28.11.1972
DIN No.:	00249864

KEY EXECUTIVES

Name :	Mr. Ashutosh Mishra
Designation :	Company Secretary and Finance Controller

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2015

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	15158690	2.37
Bodies Corporate	424144151	66.41
Sub Total	439302841	68.79
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	439302841	68.79
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	14306435	2.24
Financial Institutions / Banks	4086	0.00
Venture Capital Funds	4062	0.00
Foreign Institutional Investors	52745	0.01
Sub Total	14367328	2.25
(2) Non-Institutions
Bodies Corporate	124452195	19.49
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	23205519	3.63
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	36088571	5.65
Any Others (Specify)	1216609	0.19
Non Resident Indians	640360	0.10
Clearing Members	576249	0.09
Sub Total	184962894	28.96
Total Public shareholding (B)	199330222	31.21
Total (A)+(B)	638633063	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	638633063	0.00

BUSINESS DETAILS

Line of Business :	Subject manufactures steel and steel products for manufacturing of automobiles, appliances, and other products, produces ferrous and non-ferrous castings for the railroad, automobile, construction, and valve manufacturing industries, and mines coal.
Products :	· Steel and Steel Products · Ferrous and Non-Ferrous Castings
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Axis Bank Limited
Branch:	Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad- 380006, Gujarat, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Andhra Bank

· Punjab National Bank

· Bank of India

· State Bank of Bikaner and Jaipur

· Bank of Maharashtra

· State Bank of Hyderabad

· Central Bank of India

· State Bank of India

· ICICI Bank Limited

· State Bank of Patiala

· IDBI Bank Limited

· State Bank of Travancore

· Indian Overseas Bank

· UCO Bank

· Oriental Bank of Commerce

· Union Bank of India

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Term Loans
From Banks	29048.083	24036.860
SHORT TERM BORROWINGS
Working Capital Rupee Loans from Banks	6804.453	5327.154
Total	35852.536	29364.014

Banking Relations :

--

Auditors 1 :

Name :

Chaturvedi and Shah

Chartered Accountants

Auditors 2 :

Name :

Agrawal Chhallani and Company

Chartered Accountants

Memberships :

--

Collaborators :

--

Subsidiary :

Jayaswal Neco Urja Limited

Associate Company :

Maa Usha Urja Limited

Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year :

· Neco Heavy Engineering and Castings Limited

· AMR Iron and Steel Private Limited

· Neco Ceramics Limited

· Neco Mining Company Limited

· NSSL Private Limited

· Steel and Tube Exports Limited

· Jayaswal Neco Metallics Private Limited

· Jayaswal Holdings Private Limited

· Apex Spinning Mills Private Limited

· Anurag Sales and Services Private Limited

· Avon Sales & Services Private Limited

· Karamveer Impex Private Limited

· Jyotikant Investments Private Limited

· Nine Star Plastic Packaging Services Private Limited

· Jayaswal Neco Infrastructures Private Limited

· Vibrant Electronics Limited

· Jayaswal Neco Steel and Mining Limited

· Jayaswal Neco Energy Private Limited

· Parivar Food Industries Private Limited

· Jayaswal Neco Power Private Limited

· JLD Yavatmal Energy Limited

· Nagpur Scrap Suppliers Private Limited

· Neco Valves and Pumps Private Limited

· Neco Defence Systems Limited

· Deify Infrastructures Limited (upto 31.03.2014)

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
1,00,00,00,000	Equity Shares	Rs. 10/- each	Rs. 10000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
63,86,33,063	Equity Shares	Rs. 10/- each	Rs. 6386.330 Million
	Less : Allotment Money Unpaid (from other than Directors)		Rs. 0.072 Million
	Total		Rs. 6386.258 Million

a) Reconciliation of Equity Shares outstanding at the beginning and at the end of the year

Particulars	31.03.2015
	(No. of Shares)	(Rs. In Million)
Shares outstanding at the beginning of year	59,86,33,063	5986.330
Add : Shares issued pursuant to Scheme of Arrangement	--	--
Add : Shares issued during the year on Preferential Basis	4,00,00,000	400.000
Shares outstanding at the end of year	63,86,33,063	6386.330

b) Details of Shareholders, holding more than 5% shares of the Company

Name of Shareholders	31.03.2015
	(No. of Shares)	Percentage
Jayaswal Holdings Private Limited	5,30,98,951	8.31
Karamveer Impex Private Limited	4,72,29,000	7.40
Nine Star Plastic Packaging Services Private Limited	4,42,94,600	6.94
Jayaswal Neco Metallics Private Limited	4,07,10,500	6.37
Avon Sales and Services Private Limited	3,90,95,000	6.12
Jayaswal Neco Energy Private Limited	3,97,32,000	6.22
Anurag Sales and Services Private Limited	3,89,31,000	6.10
Jayaswal Neco Power Private Limited	3,63,54,500	5.69
Apex Spinning Mills Private Limited	3,52,99,600	5.53
Jayaswal Neco Infrastructures Private Limited	3,43,85,500	5.38

c) 3,26,49,600 (Previous Year 15,64,26,456) shares were allotted in the last five years pursuant to various Schemes of Amalgamation and Arrangement without payment being received in cash.

d) Rights of Equity Shareholders

The Company has only one class of equity shares having a face value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the equity shareholders will be entitled to receive any of remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

e) As approved by the shareholders in their Extraordinary General Meeting held on 25th July 2014, the Board of Directors has allotted 4,00,00,000 equity shares of Rs. 10 each @ Rs. 25 per share. This money has been fully utilised for the upcoming projects of the Company.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6386.258	5986.258	4971.762
(b) Reserves & Surplus	15794.933	15252.422	13093.078
(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)	22181.191	21238.680	18064.840
(3) Non-Current Liabilities
(a) Long-term borrowings	29584.788	24559.435	14411.367
(b) Deferred tax liabilities (Net)	2139.042	2033.988	1606.707
(c) Other long term liabilities	2.342	1.685	1.685
(d) long-term provisions	269.495	269.495	269.495
Total Non-current Liabilities (3)	31995.667	26864.603	16289.254
(4) Current Liabilities
(a) Short term borrowings	8449.441	10005.621	7770.145
(b) Trade payables	4321.105	3693.623	3578.579
(c) Other current liabilities	4505.291	3209.556	2831.674
(d) Short-term provisions	615.890	560.980	511.664
Total Current Liabilities (4)	17891.727	17469.780	14692.062
TOTAL	72068.585	65573.063	49046.156
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13393.217	14090.644	12175.921
(ii) Intangible Assets	617.774	637.231	424.362
(iii) Capital work-in-progress	29844.266	18926.658	9516.801
(iv) Intangible assets under development	1530.322	1394.630	848.951
(b) Non-current Investments	0.001	0.001	0.001
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10090.085	14352.527	12353.265
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	55475.665	49401.691	35319.301
(2) Current assets
(a) Current investments	149.616	144.680	143.517
(b) Inventories	9245.941	7816.505	8018.506
(c) Trade receivables	3144.608	4106.293	3018.541
(d) Cash and cash equivalents	601.801	2545.701	1513.030
(e) Short-term loans and advances	3450.954	1558.193	1033.261
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	16592.920	16171.372	13726.855
TOTAL	72068.585	65573.063	49046.156

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	30242.701	31610.512	25492.423
		Other Income	173.680	103.164	117.807
		TOTAL	30416.381	31713.676	25610.230
Less	EXPENSES
		Cost of Materials Consumed	16618.472	18783.290	15584.875
		Purchases of Stock-in-Trade	3045.910	1690.579	546.027
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(417.736)	(309.342)	(675.022)
		Employees benefits expense	1576.221	1491.693	1274.912
		Other expenses	5827.152	6044.877	5618.137
		TOTAL	26650.019	27701.097	22348.929
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		3766.362	4012.579	3261.301
Less	FINANCIAL EXPENSES		1848.472	1733.814	1806.214
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1917.890	2278.765	1455.087
Less/ Add	DEPRECIATION/ AMORTISATION		828.379	1157.244	966.836
	EXCEPTIONAL ITEM		916.153	0.000	0.000
	PROFIT/(LOSS) BEFORE TAX		173.358	1121.521	488.251
Less	TAX		153.674	488.534	201.777
	PROFIT/(LOSS) AFTER TAX		19.684	632.987	286.474
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	80.754	128.516	118.428
		Recovery of Freight	2.308	3.166	3.028
	TOTAL EARNINGS		83.062	131.682	121.456
	IMPORTS
		Raw Materials	810.327	2168.135	1000.723
		Stores & Components	228.696	106.413	106.240
		Capital Goods	50.975	0.278	0.000
	TOTAL IMPORTS		1089.998	2274.826	1106.963
	Earnings Per Share (Rs.)
	Basic		0.03	1.19	0.73
	Diluted		0.03	1.17	0.66

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	2241.210	1922.729	1778.017
Cash Generated from Operations	3448.872	2054.119	2182.050
Net Cash Flow From Operating Activities	3330.551	1843.643	2090.524

QUARTERLY RESULTS

PARTICULARS (Unaudited)	30.06.2015 (1^st Quarter)
Net Sales	7050.500
Total Expenditure	6367.100
PBIDT (Excl OI)	683.400
Other Income	100.500
Operating Profit	783.900
Interest	516.300
Exceptional Items	NA
PBDT	267.600
Depreciation	181.400
Profit Before Tax	86.200
Tax	(8.000)
Provisions and contingencies	NA
Profit After Tax	94.200
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	94.200

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.07	2.00	1.12
Operating Profit Margin (PBDIT/Sales)	(%)	12.45	12.69	12.79
Return on Total Assets (PBT/Total Assets}	(%)	0.43	2.48	1.26
Return on Investment (ROI) (PBT/Networth)		0.01	0.05	0.03
Debt Equity Ratio (Total Debt/Networth)		1.82	1.72	1.33
Current Ratio (Current Asset/Current Liability)		0.93	0.93	0.93

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.7.05/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	4971.762	5986.258	6386.258
Reserves & Surplus	13093.078	15252.422	15794.933
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	18064.840	21238.680	22181.191
Long-term borrowings	14411.367	24559.435	29584.788
Short term borrowings	7770.145	10005.621	8449.441
Current maturities of long-term debts	1778.017	1922.729	2241.210
Total borrowings	23959.529	36487.785	40275.439
Debt/Equity ratio	1.326	1.718	1.816

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	25492.423	31610.512	30242.701
		24.000	(4.327)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	25492.423	31610.512	30242.701
Profit	286.474	632.987	19.684
	1.12%	2.00%	0.07%

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)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
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	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10587604	31/07/2015	1,400,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD- 380006, GUJARAT, INDIA	C62316930
2	10575967	12/06/2015	50,000,000.00	UNION BANK OF INDIA	318, POST OFFICE ROAD,, GANDHIBAGH BRANCH,, NAGPU R- 440002, MAHARASHTRA, INDIA	C56959158
3	10566737	24/04/2015	436,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD- 380006, GUJARAT, INDIA	C52311529
4	10564647	31/03/2015	359,400,000.00	UCO BANK	FLAGSHIP CORPORATE BRANCH, 1ST FLOOR,, MAFATLAL C ENTRE, NARIMAN POINT, MUMBAI- 400021, MAHARASHTRA, INDIA	C51365203
5	10560710	19/03/2015	275,604,000.00	UNION BANK OF INDIA	GANDHIBAGH BRANCH, 318 POST OFFICE ROAD, NAGPUR- 440002, MAHARASHTRA, INDIA	C49719388
6	10547151	28/01/2015	939,220.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD- 380006, GUJARAT, INDIA	C42503284
7	10541732	30/12/2014	980,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH,, 5, SAI COMPLEX, BHARA T NAGAR, AMRAVATI ROAD,, NAGPUR- 440033, MAHARASHTRA, INDIA	C39817036
8	10485451	23/01/2015 *	1,330,000,000.00	PUNJAB NATIONAL BANK	SITABULDI, MAHAJAN MARKET, NAGPUR- 440012, MAHARASHTRA, INDIA	C42610279
9	10483785	30/08/2014 *	928,600,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 5, SAI COMPLEX,, BHARA T NAGAR, AMRAVATI ROAD,, NAGPUR- 440033, MAHARASHTRA, INDIA	C19484039
10	10471710	23/01/2015 *	1,000,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI- 400005, MAHARASHTRA, INDIA	C42609115

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Sales Tax Deferral (Under Package Scheme of Incentives)	435.054	391.712
Long term maturities of finance lease obligations	101.651	130.863
SHORT TERM BORROWINGS
Inter Corporate Deposits taken from:
i) Related parties	277.503	313.693
ii) Others	1185.279	1203.279
Buyer's Credits	35.597	6.381
Suppliers Credits*	146.609	3155.114
Total	2181.693	5201.042

* Backed by Letter of Credit and includes Rs. 0.273 Million (Previous Year Rs. 2517.256 Million) relating to Capital Goods to be paid out of Term Loans.

SEGMENT COMPOSITION:

a) Steel Segment is engaged in manufacture and sale of Pig Iron, Billets, Rolled Products, Sponge Iron and includes its captive Power Plants at its unit located at Siltara, Raipur and Mining activities in the state of Chhattisgarh, Jharkhand and Maharashtra.

b) Iron and Steel Castings Segment comprises of manufacture and sale of Engineering and Automotive Castings with production facilities at Nagpur, Bhilai and Anjora.

c) Other Segment comprise of trading of cotton yarn, coal and PVC pipes.

MANAGEMENT DISCUSSION AND ANALYSIS:

Financial Performance:

The year was a very challenging one with multiple constraints being faced due to unprecedented dumping of Steel from China, Russia, Japan and South Korea at very aggressive prices, cancellation of captive coal blocks with blockage of investments incurred over period of time in the coal mines , no future return expected from the cancelled coal blocks, payment of significant additional levy on coal extracted right from the inception, pricing pressures, low domestic demand, lack of working capital to sustain the operations and burden of debt servicing of the projects.

INDUSTRY OUTLOOK, DEVELOPMENTS AND CONCERNS:

The slowdown in the economic growth which set in two years back continued in the year 2014-15. Many factors like continued inflationary pressures, adverse effects due to coal blocks de-allocation, extraordinary dumping of cheap steel, lack of commensurate domestic demand, pricing pressures, fiscal situation, freeze on the flow of credit by the Banks and Financial Institutions, lack of private and public investments and the influence of subdued external demand compounded the problems for the domestic Iron and Steel industry.

India is the fourth largest crude steel producer in the world and is one of the leading producers of pig iron and the largest producer of sponge iron in the world. Steel manufacturing infrastructure in the country is well developed and consists of integrated steel mills as well as primary steel mills manufacturing a variety of semi-finished and finished steel products.

However, despite this growth in steel sector, the domestic consumption is yet to pick up commensurately. Stringent anti dumping measures to avoid dumping from China, Russia, South Korea and Japan where domestic demand is very weak, revival of private and public infrastructure investments in our country, easing of availability of coal at affordable prices through coal linkages, increasing iron ore and fines production and removing restrictions on its mining, recommencement of credit flow to the sector is must to revive the sector which is a vital

part of the country's core sector.

Solving socio political issues at the mines sites would help to commence captive iron ore mining in those areas. With the additional capacities being created by the Company in finished steel making in the long products segment, adoption of various austerity measures and other efforts; the Company is trying to improve its performance weathering the adverse conditions. Sustained domestic economic recovery will have to be led by improved public infrastructure expenditure and private investment and consumption.

Law and order problems in Iron Ore Mining belts in the State of Chhattisgarh is another continuing concern for the company as well as for the economy; creating serious problems for government and social machineries. This has already delayed operationalisation of the captive Iron Ore Mines of the Company in those regions. Nevertheless, the Company is making all efforts to start those Mines.

Finding market for its new Steel Melt Shop and Rolling Mill products and sustained pressure on selling prices amidst weak demand is a major challenge and area of concern for the company.

The analysts predict that despite global overcapacity, potential growth in domestic demand will continue to fuel ambitions in the Indian steel landscape. Boosting domestic demand will be a critical enabler to realize the ambition. The steel intensity curve, socio-economic indicators coupled with announced directional plans of the new Government, all indicate potential to multiply the industry size in India.

The focus on the “Make in India” campaign is expected to give a fresh impetus to the steel consumption. Steel being a capital-intensive industry, the investments need to be calibrated to realistic levels based on domestic demand while aspiring for increased participation in the global arena. With good raw material supply conditions, a growing market and competent producers, analysts believe that India is at the start of a new growth curve. It may not be immediate, however the fundamental conditions for growth are in place.

PART I

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

(Rs. in Million)

	Particulars	30.06.2015 3 months ended
		Unaudited
1.	Income from Operations
	a) Net Sales/Income from Operations	7050.200
	(Net of excise duty)
	b) Other Operating Income	0.300
	Total Income from Operations (net)	7050.500
2.	Expenses
	a) Cost of materials consumed	4320.200
	b) Purchase of traded goods	386.500
	c) Changes in inventories of finished goods, work-in-progress and traded goods	127.700
	d) Employee benefits expense	327.300
	e) Depreciation and amortisation expense	181.400
	f) Exchange Difference (Net)	14.100
	g) Other expenses	1191.300
	Total Expenses	6548.500
3.	Profit from Operations before other income, finance costs and Exceptional items (1-2)	502.000
4.	Other Income	100.500
5.	Profit from ordinary activities before finance costs and exceptional Items (3+4)	602.500
6.	Finance costs	516.300
7.	Profit from ordinary activities after finance costs but before exceptional Items (5-6)	86.200
8.	Exceptional Items	--
9.	Profit/ (Loss) from ordinary activities before tax (7-8)	86.200
10.	Tax expense
	Current tax (Net of MAT Credit)	--
	Deferred tax liability/ (Deferred tax asset)	(8.000)
11.	Net Profit/ (Loss) from ordinary activities after tax (9-10)	94.200
12.	Extraordinary items ( net of tax expense)	--
13.	Net Profit/ (Loss) for the period (11-12)	94.200
14.	Paid - up Equity Share Capital (face value per share Rs 10/-)	6386.300
15.	Reserves excluding revaluation reserves as per the audited balance sheet of previous year
16.	Earnings Per Share (before and after extraordinary items) (of Rs. 10 each) (not annualised)
	a) Basic	0.15
	b) Diluted	0.15
PART II
Select Information for the Quarter Ended 30.06.2015
A.	PARTICULARS OF SHAREHOLDING
1.	Public Shareholding
	- Number of Shares	199330222
	- Percentage of Shareholding	31.21%
2.	Promoter and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	52857285
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	12.03%
	-Percentage of Shares (as a % of the total share capital of the Company)	8.28%
	b) Non-encumbered
	- Number of Shares	386445556
	-Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	87.97%
	-Percentage of Shares (as a % of the total share capital of the Company)	60.51%
	Particulars	Quarter ended on June 30, 2015
B.	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	0
	Disposed of during the quarter	0
	Remaining unresolved at the end of the quarter	Nil

NOTES:

1. The above results have been reviewed by Audit Committee and approved and taken on record by the Board of Directors at its Meeting held on 12^th August, 2015

2. The statutory auditors of the Company have carried out a Limited Review of the results for the quarter ended 30th June, 2015 in accordance with clause 41 of the listing agreement
3. In the earlier year, the Hon'ble Supreme Court of India by its Order dated 24th September, 2014 cancelled number of coal blocks allotted to various entities which includes three coal blocks consisting of one operational and two under development blocks allotted to the Company by the Ministry of Coal, Government of India. Subsequently the Government of India, issued second Ordinance on 26th December, 2014 for implementing the order of the Hon’ble Supreme Court and fixation of Compensation etc. These mines have been allotted to other bidders in the e-auction by the Ministry of Coal, Government of India.

The Company has filed Writ Petitions (WP) before the Hon’ble Delhi High Court, challenging various provision of the Coal Mines (Special Provision) Second Ordinance 2014, pertaining to mode and manner of determination of compensation for Land and Mine Infrastructure etc. Further company has also challenged certain provisions of tender documents based on which auction was conducted by the Ministry of Coal, Government of India.

As on 30th June,2015 the Company’s Net investment in the value of Mining Assets in the three Coal blocks was Rs. 22013.39 lacs. The Company had also made provision for Rs. 2694.95 lacs for site restoration expenses.

Subject to outcome of the WP, no adjustment has been made in the value of the above mentioned mining assets as the value of compensation to be received cannot be determined at this stage. The losses/gains, if any on account of it would be recognised as and when determined. This has been also qualified by the auditors in their Review Report on the aforesaid financial results and had also qualified in their report on the Financial Statements of the Company for the year ended 31st March, 2015.

4. The Company’s Project for enhancement of Iron and Steel making capacities of its Integrated Steel Plant

and Captive Power Plants in Chhattisgarh are facing time delay of around twelve months. The Company is confident and committed to commission the projects at the earliest.

5. The figures for the corresponding previous year/periods have been restated/regrouped wherever necessary to make them comparable. The figures for the quarter ended 31st March, 2015 are the balancing figures between the audited figures in respect of full financial year and the published year to date figures up to the third quarter of the financial year 2014-2015.

REPORT OF SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED, UNDER CLAUSE 41 OF THE LISTING AGREEMENT:

(Rs. in million)

Particulars	Unaudited 3 months ended 30.06.2015
Segment Revenue
a) Steel	5952.100
b) Iron and Steel Castings	888.200
c) Others	223.000
Total	7063.300
Less : Inter Segment Revenue	13.100
Net Sales / Income from Operations (Net)	7050.200
Segment Results (Segment Revenue – Segment Expenses)
a) Steel	484.700
b) Iron and Steel Castings	29.100
c) Others	8.600
Total	522.400
Less : i) Finance Cost	(516.300)
ii) Unallocated Corporate Expenses	(9.900)
iii) Unallocated Income	90.000
Total Profit/ (Loss) before Tax	86.200
Capital Employed (Segment Assets-Segment Liabilities)
a) Steel	60444.400
b) Iron and Steel Castings	2758.600
c) Others	18.800
d) Unallocated (Assets- Liabilities)	(40946.300)
Total	22275.500

NOTES:

Segments have been identified in line with the Accounting Standard on Segment Reporting (AS 17).

Steel Segment is engaged in manufacture and sale of Pig Iron. Billets, Rolled Products including alloy steel and sponge Iron and its captive power plants at its units located at Siltara, Raipur and Mining activities in the state of Chhattisgarh, Jharkhand and Maharashtra and trading of steel items.

Iron and steel Castings Segment comprises of manufacture and sale of Engineering and Automotive Castings with production facilities at Nagpur in Maharashtra and Bhilai and Anjora in Chhattisgarh.

Other Segment comprise of trading of cotton yarn, coal and PVC pipes.

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
a. Guarantees given by the Company's Bankers. (Bank guarantees are provided under contractual/legal obligation)	360.391	390.087
Corporate Guarantee (Given to Banks against the borrowing taken by one of the associate Company)	118.100	118.100
c. Demands not acknowledged as debts
i) Disputed Excise Duty and Service Tax	280.314	272.854
ii) Disputed Sales Tax	248.080	406.575
iii) Disputed Customs Duty (Relating to cess on Metallurgical Coke)	86.510	83.311
iv) Other Disputed Demands (Mainly related to demand of Cess on Power, Electricity Duty and Stamp Duty)	657.177	715.559
v) Third Party Claims (Matters are pending before various forums)	24.300	42.068
d. Liability in respect of Bills Discounted	1970.959	1841.284
e. Letters of credit opened in favour of suppliers (Cash flow is expected on receipt of material from suppliers)	1030.453	4515.649
Total	4776.284	8385.487

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Leasehold Land

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. 66.18
UK Pound	1	Rs. 100.46
Euro	1	Rs. 74.61

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAR
Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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 and 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.