MIRA INFORM REPORT

Report No. :	516582
Report Date :	26.06.2018

IDENTIFICATION DETAILS

Name :	ELECTROSTEEL STEELS LIMITED (w.e.f. 05.05.2010)
Formerly Known As :	ELECTROSTEEL INTEGRATED LIMITED
Registered Office :	801, Uma Shanti Apartments, Kanke Road, Ranchi – 834008, Jharkhand
Tel. No.:	91-651-2285636
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	20.12.2006
Paid-up Capital :	INR 24092.350 Million
CIN No.: [Company Identification No.]	L27310JH2006PLC012663
IEC No.:	Not Divulged
PAN No.: [Permanent Account No.]	Not Divulged
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in Selling of Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes. [Registered activity]
No. of Employees :	2153 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

D

Credit Rating	Explanation	Rating Comments
D	High Risk	Business dealing not recommended or on secured terms only

Status :	Under Insolvency Process
Payment Behaviour :	Slow and delayed
Litigation :	Exists
Comments :	Subject was incorporated in the year 2006. It is a seller of TMT bars, billets, ductile iron pipes, pig iron and wire rods. For the financial year 2017, the revenue of the company has decreased by 3.96% and has incurred operational loss. The moderate financial risk profile of the company is reflected by negative networth base due to huge accumulated losses along with poor debt coverage indicators due to high debt balance sheet profile. The rating is constrained on account of delays in debt servicing by the company due to its weak liquidity and competition of integrated steel and subdued steel industry scenario. Furthermore, the company has been found under RBI defaulter’s list, the name of credit grantor is ICICI Bank Limited and the amount charged is INR 495.554 million as on 31-12-2018. The shares of the company are traded at the share price of INR 15.17 on stock exchange as against the face value of INR 10 as on 22nd June, 2018. As per the unaudited quarterly financials of December 2017, the company has achieved revenue of INR 8483.864 million but has incurred operational loss. The National Company Law Tribunal has ordered the commencement of a corporate insolvency resolution process against the Electrosteel Steels Limited on 21st July, 2017. Payment seems to be slow and delayed. In view of the aforesaid, we do not recommend any business dealings with the subject. Note: As per the current press release NCLT had approved the resolution plan submitted by Vedanta Ltd for Electrosteel Steels, making it first among the 12 large stressed accounts identified by RBI last year to get resolved under the Insolvency and Bankruptcy Code.

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

Country Name	Previous Rating (31.12.2017)	Current Rating (01.04.2018)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities D (Issuser Not Cooperating)
Rating Explanation	Lowest credit quality and very low prospects of recovery.
Date	19.02.2018

RBI DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under:

Borrowers’ Name :	ELECTROSTEEL STEELS LIMITED
Address :	801, UMA SHANTI APARTMENTS, KANKE ROAD, RANCHI – 834008, JHARKHAND, INDIA
Name of Individual :	Jayantika Ganguly Jinendra Kumar Jain Lalit Kumar Singh Naresh Pachisia Rama Shankar Singh Umang Kejriwal
Name of Credit Grantors / Bank & Branch:	ICICI Bank Limited, Kolkata
Amount (Rs. In Millions) :	INR 495.554 Million

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31.03.2018.

Name :	ELECTROSTEEL STEELS LIMITED	DID NOT MAKE DISCLOSURE IN RHP REGARDING REJECTION OF PROPOSAL OF FOREST DIVERSION OF ITS IRON ORE MINE BY MINISTRY OF ENVIRONMENT AND FOREST VIOLATING REGULATION 2009 IN MATTER OF IPO OF ELECTROSTEEL CASTING LIMITED	IMPOSED PENALTY INR 10.000 Million  31-MAR-2016
Old Name :	ELECTROSTEEL INTEGRATED LIMITED
PAN No :	AABCE6875H

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date. The details of the listing are as under :

Date of Listing / Announcement :	21.07.2017
Name of Company :	Electrosteel Steels Limited
Name of Applicant :	Dhaivat Anjaria
Name of Insolvency Professional :	PricewaterhouseCoopers (PWC)
Address of Insolvency Professional :	252, Veer Savarkar marg, Shivaji park, Dadar, Mumbai - 400028
Reason for Listing :	Corporate Insolvency Resolution Process

INFORMATION DECLINED

Management non-cooperative (Tel No.: 91-657-2285636/ 91-33-71034400)

LOCATIONS

Registered Office :	801, Uma Shanti Apartments, Kanke Road, Ranchi – 834008, Jharkhand, India
Tel. No.:	91-651-2285636
Fax No.:	91-651-2285636
E-Mail :	eil.investors@electrosteel.com binayak.dash@electrosteel.com
Website :	www.electrosteelsteels.com
Location :	Owned
Locality :	Industrial
Head Office/ Corporate Office/ Marketing Office :	G K Tower, 2^nd and 3^rd Floor, 19, Camac Street, Kolkata – 700017, West Bengal, India
Tel. No.:	91-33-71034400
Fax No.:	91-33-22902882
Factory/ Project Site :	Village Siyaljori, P.O. Jogidih, P S Chandankyari, Bokaro – 828303, Jharkhand, India
Branch Offices :	Ø Office No.-2B, Puja Apartment, Wing-A, 2^nd Floor, New Dak Bunglow Road, Patna – 800001, Bihar, India Ø Lohanchal Colony, Plot No.10, Near Sector 12-F, Bokaro Steel City, Jharkhand, India Ø Flat F-3, House No.11, House of JN Sarm, Udaychal Path, Christian Basti, Behind Christian Basti Petrol Pump, Guwahati – 781005, Assam, India Ø C-101, Palaspally, 1^st Floor, Bhubaneswar – 751020, Orissa, India Ø 19 Camac Street, Kolkata, West Bengal, India Ø B-47, Shiv Mahal, Connaught Place, New Delhi – 110001, India Ø 312, 314, 3rd Floor, DLF Tower – B, Jasola, New Delhi – 110025, India

DIRECTORS

AS ON 31.03.2018

Name :	Mr. Rajkumar Khanna
Designation :	Non-Executive Independent Director
Address :	Flat No. 229, Malwa Singh Block, Asian Games Village, New Delhi – 110049, India
Date of Appointment :	05.05.2014
DIN No.:	05180042
Name :	Mr. Jinendra Kumar Jain
Designation :	Non-Executive Independent Director
Address :	60, Southern Avenue, 5th Floor, Kolkata – 700029, West Bengal, India
Date of Appointment :	06.05.2013
DIN No.:	00737352
Name :	Mr. Lalit Kumar Singhi
Designation :	Non-Executive Director
Address :	27/8A, Water Loo Street, Kolkata – 700069, West Bengal, India
Date of Birth/Age :	18.11.1959
Date of Appointment :	06.02.2012
DIN No.:	00893144
Name :	Mr. Naresh Pachisia
Designation :	Non-Executive Independent Director
Address :	Flat 9B, 29A, Ballygunge Park Road, Kolkata – 700019, West Bengal, India
Date of Appointment :	20.05.2009
DIN No.:	00233768
Name :	Mr. Sunil Vasant Diwakar
Designation :	Non-Executive Director
Address :	C-002, Shreejiville, Opposite Nitin Company, Almeda Road, Panchpakhadi, Thane West – 400602, Maharashtra, India
Date of Birth/Age :	22.05.1963
Date of Appointment :	31.08.2009
DIN No.:	00089266
Name :	Mr. Umang Kejriwal
Designation :	Non-Executive Director
Address :	Nav-Nikunj, 13, Gurusaday Road, Kolkata – 700019, West Bengal, India
Date of Appointment :	20.12.2006
DIN No.:	00065173
Name :	Mr. Rama Shankar Singh
Designation :	Whole Time Director
Address :	Ashoka Building, Flat :1D, Ashoka Road,Alipore, Kolkata – 700027, West Bengal, India
Date of Appointment :	06.02.2014
DIN No.:	02093276
Name :	Mr. Devaprasad Mozumder
Designation :	Nominee Director
Address :	A3-1205, Kumar Kruti, Wadgaon Sheri, Pune – 411014, Maharashtra, India
Date of Appointment :	08.12.2016
DIN No.:	07666887
Name :	Ms. Jayantika Ganguly
Designation :	Additional Director
Address :	8-A-10, Mig, Green Wood, Park Extension, New Town, Rajarhat, North 24 Parganas, Kolkata – 700156, West Bengal, India
Date of Appointment :	08.12.2016
DIN No.:	07667499

KEY EXECUTIVES

Name :	Mr. Ashutosh Agarwal
Designation :	Chief Financial Officer
Address :	33, Raja Santosh Road, Flat No. 4c, Front Block, Alipore, Kolkata – 700027, West Bengal, India
Date of Appointment :	05.05.2014
PAN No.:	ADBPA9564H
Name :	Mr. Pradeep Kumar Misra
Designation :	Non-Executive Independent Chairman
Name :	Mr. Binaya Kumar Dash
Designation :	Company Secretary
Address :	HIG-W-7, Niva Park, Phase-2, Brahmapur, Kolkata – 700096, West Bengal, India
Date of Appointment :	14.02.2017
PAN No.:	AGVPD5134B
Name :	Mr. Sunil Harbans Lal Katial
Designation :	Chief Executive Officer
Address :	1091. Park Royal Apartment, Plot No 10A, Sector-9, Dwarka, New Delhi – 110077, India
Date of Appointment :	04.07.2016
PAN No.:	ACRPK2195B

SHAREHOLDING PATTERN

AS ON 15.06.2018

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Public	196167342	100.00
Grand Total	196167342	100.00

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

Category & Name of the Shareholders	Total no. shares held	Shareholding % calculated as per SCRR, 1957 As a % of
B1) Institutions		0.00
Foreign Portfolio Investors	20000	0.01
Financial Institutions/ Banks	136554084	69.61
Bank Of India	3179949	1.62
Bank Of Baroda	2680074	1.37
Central Bank Of India	2122296	1.08
Canara Bank-Mumbai	7626626	3.89
Corporation Bank	2737828	1.40
Indian Overseas Bank	6860473	3.50
Indian Bank	2631591	1.34
Life Insurance Corporation Of India	2552036	1.30
Oriental Bank Of Commerce	6569253	3.35
Punjab National Bank	9341817	4.76
State Bank Of India	54323584	27.69
Union Bank Of India	4480503	2.28
Uco Bank	7434840	3.79
United Bank Of India	4886824	2.49
Vijaya Bank	3055436	1.56
Allahabad Bank	4383476	2.23
Bank Of Maharashtra	1996738	1.02
Syndicate Bank	2729701	1.39
Any Other (specify)	3252585	1.66
Overseas Corporate Bodies	1503748	0.77
Sub Total B1	139826669	71.28
B2) Central Government/ State Government(s)/ President of India		0.00
B3) Non-Institutions		0.00
Individual share capital upto INR 0.200 Million	14455634	7.37
Individual share capital in excess of INR 0.200 Million	1856534	0.95
NBFCs registered with RBI	1770	0.00
Any Other (specify)	40026735	20.40
Trusts	10351	0.01
Non-Resident Indian (NRI)	439591	0.22
Clearing Members	4356	0.00
Non Resident Indian Non Repatriable	66554	0.03
Bodies Corporate	39505883	20.14
Sub Total B3	56340673	28.72
B=B1+B2+B3	196167342	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Selling of Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes. [Registered activity]

Products / Services :

Name and Description of Products / Services	NIC Code
Basic Iron and Steel	24101/24103/24105
Ductile Iron Pipe	24311

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers, Manufacturer

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

No. of Employees :

2153 (Approximately)

Bankers / Lenders :

· Allahabad Bank

· Indian Overseas Bank

· Andhra Bank

· Jammu & Kashmir Bank Limited

· Bank of Baroda

· LIC of India

· Bank of India

· Oriental Bank of Commerce

· Bank of Maharashtra

· Punjab National Bank

· Canara Bank

· Punjab & Sind Bank

· Central Bank of India

· SREI Infrastructure Finance Limited

· Corporation Bank

· State Bank of India

· Dena Bank

· Syndicate Bank

· HUDCO

· UCO Bank

· ICICI Bank Limited

· Union Bank of India

· IL&FS Financial Services Limited

· United Bank of India

· Indian Bank

· Vijaya Bank

Facilities :

(INR In Million)

SECURED LOANS	As on 31.03.2017	As on 31.03.2016
LONG TERM BORROWING
Restructured Term Loan	45194.003	52836.594
Additional Term Loan	8460.928	10010.872
Funded Interest Term Loan (FITL)	9162.080	10946.285
Restructured Term Loan	5507.346	6660.195
Funded Interest Term Loan (FITL)	873.556	1137.535
SHORT TERM BORROWING
Loan Repayable on Demand From Banks
Working Capital Facility (a)	4281.456	3945.999
Buyers Credit	2681.471	2491.871
Total	76160.840	88029.351

Note : A) Working Capital facility from Banks & Buyers' Credit is secured. The working capital facility carries interest rate of 11.00% p.a. and the Buyers' Credit carries interest rate at LIBOR plus spread being 0.24% to 0.75%.

Auditors :
Name :	B. Chhawchharia and Company Chartered Accountants
Address :	8A and 8B Satyam Towers, 3, Alipore Road, Kolkata – 700027, West Bengal, India
Tel. No.:	91-33-24791951
Fax No.:	91-33-24791952
E-Mail :	contact@bccoindia.com
Membership No.:	008482
Memberships :	Not Available
Collaborators :	Not Available
Promoter/ Associate Company :	· Electrosteel Castings Limited
Enterprises where Key Management Personnel (KMP) have significant influence or control :	· Rama Mining Consultants Private Limited · North Dhadhu Mining Company Private Limited · Asian Informatics Private Limited · Jhilmil Traders Private Limited · Bose Estates Private Limited · Sree Khemisati Constructions Private Limited · Hooghly Alloy and Steels Company Private Limited · Wilcox Merchants Private Limited · Tulsi Highrise Private Limited · Ampleforth Trading And Resources Private Limited · Hooghly Extrusions Limited

CAPITAL STRUCTURE

After 07.11.2017

Authorised Capital : INR 100000.000 Million

Issued, Subscribed & Paid-up Capital : INR 24092.350 Million

AS ON 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000000	Equity Shares	INR 10/- each	INR 50000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2409235023	Equity Shares	INR 10/- each	INR 24092.350 Million

a) Share Capital Reconciliation

Equity Shares	Number of Shares	Amount in Million
Opening balance	2409235023	24092.350
Issued during the period	--	--
Closing Balance	2409235023	24092.350

b) Particulars of Equity Shareholders holding more than 5% Shares at Balance Sheet date

Name of Shareholder	Number of Shares	% of holding
Electrosteel Castings Limited	1089800000	45.23%
Stemcor Cast Iron Investments Limited	400909646	16.64%

Rights, Preferences and Restrictions attached to shares

c) The Company has only one class of Shares referred to as Equity Shares having face value of INR 10. Each holder of Equity Shares is entitled to one vote per Share. In the event of liquidation, the Equity Shareholders are eligible to receive in proportion to their shareholding the remaining assets of the Company, after distribution of the preferential amount.

d) During the Financial year ended 31st March 2015, pursuant to the Corporate Debt Restructuring (CDR) Scheme, the Company had made preferential allotment of 22.25 crores Equity Shares of INR 10 each fully paid to Electrosteel Castings Limited under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and Companies Act, 2013. The proceeds of the issue have been utilised for the capital expenditure at the Plant, which is in line with CDR Scheme.

e) 2507571148 (Two Hundred Fifty crore seventy five lac seventy one thousand and one hundred and forty eight) number of Equity Shares (“These Shares”) of INR 10/- each are reserved for issue and allotment on preferential basis to the lenders as per the Strategic Debt Restructuring (SDR) terms under loans contract with the lenders by conversion of loan for a sum of INR 25075.700 million. These Shares will rank pari-passu with the existing Equity Shares with the right of pro-rata dividend from the date of allotment and that these Shares will be listed on the stock exchanges where the existing Equity Shares are listed.

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	24092.350	24092.350	24092.350
(b) Reserves & Surplus	(29770.811)	(15138.502)	(13163.957)
(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	(5678.461)	8953.848	10928.393
(3) Non-Current Liabilities
(a) long-term borrowings	68087.894	81591.481	88972.410
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	3.540	3.541	6.947
(d) long-term provisions	83.390	59.620	43.376
Total Non-current Liabilities	68174.824	81654.642	89022.733
(4) Current Liabilities
(a) Short term borrowings	6962.927	6437.870	5801.978
(b) Trade payables	4093.751	3657.164	2470.660
(c) Other current liabilities	56585.998	33597.919	25368.993
(d) Short-term provisions	26.221	20.981	17.276
Total Current Liabilities	67668.897	43713.934	33658.907
TOTAL	130165.260	134322.424	133610.033
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	99100.752	103720.767	46479.020
(ii) Intangible Assets	17.787	24.243	13.025
(iii) Capital work-in-progress	17990.704	17505.414	68190.370
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	1635.660
(e) Other Non-current assets	910.385	1094.124	0.000
Total Non-Current Assets	118019.628	122344.548	116318.075
(2) Current assets
(a) Current investments	0.000	0.000	400.777
(b) Inventories	7917.619	7357.625	8190.232
(c) Trade receivables	1272.047	2507.483	1143.549
(d) Cash and cash equivalents	1341.873	529.389	2598.098
(e) Short-term loans and advances	0.000	0.000	1177.710
(f) Other current assets	1614.093	1583.379	3781.592
Total Current Assets	12145.632	11977.876	17291.958
TOTAL	130165.260	134322.424	133610.033

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	27742.958	28887.589	18312.407
	Other Income	935.312	157.144	156.049
	TOTAL	28678.270	29044.733	18468.456
Less	EXPENSES
	Cost of Materials Consumed	15342.533	18422.266	14805.738
	Purchases of Stock-in-Trade	0.000	49.477	586.180
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	1170.947	(718.595)	(2071.824)
	Employees benefits expense	1311.763	840.397	447.322
	Other expenses	7070.797	6693.560	4415.531
	Excise duty on sale of goods	2330.494	2910.642	0.000
	Exceptional items	0.000	(2765.192)	0.000
	TOTAL	27226.534	25432.555	18182.947
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1451.736	3612.178	285.509
Less	FINANCIAL EXPENSES	11298.305	5266.327	4517.313
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(9846.569)	(1654.149)	(4231.804)
Less	DEPRECIATION/ AMORTISATION	4788.230	2025.793	2008.509
	PROFIT/ (LOSS) BEFORE TAX	(14634.799)	(3679.942)	(6240.313)
Less	TAX	0.000	0.000	0.110
	PROFIT/ (LOSS) AFTER TAX	(14634.799)	(3679.942)	(6240.423)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	NA	NA	1366.446
	TOTAL EARNINGS	NA	NA	1366.446
	IMPORTS
	Raw Materials	NA	NA	4724.577
	Components and Stores parts	NA	NA	726.156
	Capital Goods	NA	NA	2026.484
	TOTAL IMPORTS	NA	NA	7477.217
	Earnings / (Loss) Per Share (INR)	(6.07)	(1.53)	(2.68)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	26721.105	14657.365	7336.271
Cash generated from / (used in) operations	2453.143	7214.341	(3830.219)
Net Cash flow from / (used in) operating activities	2446.612	7212.930	(3835.924)

QUARTERLY RESULTS

Particulars	(Unaudited) 1 st Quarter Ended 30.06.2017	(Unaudited) 2^nd Quarter Ended 30.09.2017	(Unaudited) 3^nd Quarter Ended 31.12.2017
Net Sales	7731.710	7622.460	8483.860
Total Expenditure	7343.980	6812.140	7795.510
PBIDT (Excl OI)	387.730	810.320	688.350
Other Income	417.710	60.720	87.000
Operating Profit	805.440	871.040	775.350
Interest	2806.040	2827.120	2850.170
Exceptional Items	775.000	200.000	NA
PBDT	(1225.600)	(1756.080)	(2074.820)
Depreciation	1196.350	1210.490	1201.610
Profit Before Tax	(2421.950)	(2966.570)	(3276.430)
Tax	NA	NA	NA
Provisions and contingencies	NA	NA	NA
Profit After Tax	(2421.950)	(2966.570)	(3276.430)
Extraordinary Items	NA	NA	NA
Prior Period Expenses	NA	NA	NA
Other Adjustments	NA	NA	NA
Net Profit	(2421.950)	(2966.570)	(3276.430)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Operating Income * 365 Days)	16.74	31.68	22.79
Account Receivables Turnover (Operating Income / Sundry Debtors)	21.81	11.52	16.01
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	97.39	72.27	58.59
Inventory Turnover (Operating Income / Inventories)	0.18	0.49	0.03
Asset Turnover (Operating Income / Net Fixed Assets)	0.01	0.00	0.00

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	1.25	1.04	0.97
Debt Equity Ratio (Total Liability / Networth)	(17.92)	11.47	9.34
Current Liabilities to Networth (Current Liabilities / Net Worth)	(11.92)	4.88	3.08
Fixed Assets to Networth (Net Fixed Assets / Networth)	(20.62)	0.00	10.49
Interest Coverage Ratio (PBIT / Financial Charges)	0.13	0.69	0.06

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	(52.75)	(12.74)	(34.08)
Return on Total Assets ((PAT / Total Assets) * 100)	%	(11.24)	(2.74)	(4.67)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	257.72	(41.10)	(57.10)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.18	0.27	0.51
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.06	0.11	0.27
G-Score Ratio Financial (Networth / Total Assets)	(0.04)	0.07	0.08
G-Score Ratio Debt (Debts / Equity Capital)	4.22	4.26	4.24
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.18	0.27	0.51

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	INR 10.00/-
Market Value	INR 15.17/-

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	24092.350	24092.350	24092.350
Reserves & Surplus	(13163.957)	(15138.502)	(29770.811)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	10928.393	8953.848	(5678.461
long-term borrowings	88972.410	81591.481	68087.894
Short term borrowings	5801.978	6437.870	6962.927
Current Maturities of Long term debt	7336.271	14657.365	26721.105
Total borrowings	102110.659	102686.716	101771.926
Debt/Equity ratio	9.344	11.468	(17.922)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	18312.407	28887.589	27742.958
		57.749	(3.962)

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	18312.407	28887.589	27742.958
Profit/(Loss)	(6240.423)	(3679.942)	(14634.799)
	(34.08%)	(12.74%)	(52.75%)

LEGAL CASES

City Civil Court, Calcutta

Case Details

Case Type: MS - MONEY SUIT
Filing Number: 12017/2015 Filing Date: 23-12-2015
Registration Number: 752/2015 Registration Date: 23-12-2015
CNR Number: WB0101-008663-2015

Case Status

First Hearing Date: 23rd December 2015
Next Hearing Date: 06th April 2017
Stage of Case: Steps
Court Number and Judge: 7-LD JUDGE 7th BENCH

Petitioner and Advocate

1) ZKL Bearings India Pvt. Ltd.
    Address - Block B, Gillanders House, 3rd Floor, 8, Netaji Subhash Road, Kol-1, P.S.- Hare Street.
    Advocate- Sailesh Mishra
Respondent and Advocate

1) ELECTROSTEEL STEELS LTD.
    Address - VILL- SIYALJORI, P.O. JOGIDH, OP BAGERIA, P.S. CHANDANKYARI, BOKARO-828203, Jharkhand.

Acts

Under Act(s)			Under Section(s)
Specific Relief Act			6
History of Case Hearing
Registration Number	Judge	Business On Date		Hearing Date	Purpose of hearing
752/2015	LD JUDGE 7th BENCH	23-12-2015		23-11-2016	Steps
752/2015	LD JUDGE 7th BENCH	23-11-2016		06-04-2017	Steps

City Civil Court, Calcutta

Case Details

Case Type: MS - MONEY SUIT
Filing Number: 12017/2015Filing Date: 23-12-2015
Registration Number: 752/2015Registration Date: 23-12-2015
CNR Number: WB0101-008663-2015

Case Status

First Hearing Date: 23rd December 2015
Next Hearing Date: 06th April 2017
Stage of Case: Steps
Court Number and Judge: 7-LD JUDGE 7th BENCH

Petitioner and Advocate

1) ZKL Bearings India Pvt. Ltd.
    Address - Block B, Gillanders House, 3rd Floor, 8, Netaji Subhash Road, Kol-1, P.S.- Hare Street.
    Advocate- Sailesh Mishra

Respondent and Advocate

1) ELECTROSTEEL STEELS LTD.
    Address - VILL- SIYALJORI, P.O. JOGIDH, OP BAGERIA, P.S. CHANDANKYARI, BOKARO-828203, Jharkhand.

Acts

Under Act(s)	Under Section(s)
Specific Relief Act	6
History of Case Hearing

Registration Number	Judge	Business On Date	Hearing Date	Purpose of hearing
752/2015	LD JUDGE 7th BENCH	23-12-2015	23-11-2016	Steps
752/2015	LD JUDGE 7th BENCH	23-11-2016	06-04-2017	Steps

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	No
8	Designation of contact person	No
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	Yes
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	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION:

The company promoted by Electrosteel Castings Limited is a public limited company, incorporated and domiciled in India having its registered office at, 801, Uma Shanti Apartments, Kanke Road, Ranchi - 834008. ESL has an envisaged capacity of 2.51 Million Ton Per Annum (MTPA) Greenfield Integrated Steel Plant in Bokaro District Jharkhand. ESL makes products like Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron (DI) Pipes. It consists of a Sinter Plant, Pellet Plant, Coke Oven, Blast Furnace, Basic Oxygen Furnace, Billet Caster, Wire Rod Mill, Ductile Iron Pipe Plant, Bar Mill and Power Plant. It also manufactures DI Pipe used for Water supply and Pressure sewerage application. The Company's shares are listed and publically traded on the National Stock Exchange of India and Bombay Stock Exchange.

ECONOMIC OVERVIEW

This year has been marked by several historic economic policy developments. On the domestic side, a constitutional amendment paved the way for the long-awaited and transformational goods and services tax (GST) while demonetisation of the large currency notes signaled a regime shift to punitively raise the costs of illicit activities. On the international front, United Kingdom's decision to leave the European Union and the outcome of presidential elections in United States of America, both the events are expected to have long-term effects on the global economy. India has emerged as one of the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). As per the Economic Survey 2016-17, the Indian economy should grow between 6.75% and 7.5% in Financial Year 2017-18. The Indian Government's decisive policy manoeuvres towards ensuring fiscal consolidation and pegging back inflation will help it maintain economic stability in the years ahead. India's eight core infrastructure industries coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity registered cumulative growth of 4.9% during the April-November period compared to 2.5% a year ago.

GLOBAL STEEL INDUSTRY

Steel market conditions at a holistic level at the end of 2016 was mixed but overall optimistic, looking upto a rebound in Chinese market conditions to resurrect. The system, despite being weighed down by issues on stability of global economic/manufacturing growth and the streamlining of still-lingering excess capacity situation.

During the period growth in the global steel demand was sluggish, mainly attributable to weaker than expected performance in the emerging and developing economies. The slowdown in the emerging economies has revealed in deceleration in steel usage. Growth in China which had been the main driver for both demand and supply in the past, has moderated significantly reflecting the structural transformation of the economy. China has been exporting steel despite several barricading measures taken by the affected countries.

With demand remaining lukewarm for major part of the year and impact of excess capacity remaining unabated, steel prices remained on uneven grounds generally only to witness some bouncing back globally towards the end of the year.

An equally-strong rally was noted in global cooking coal prices specially in latter part of 2016, where rising demand in face of a stringent supply side impacted price markedly.

World crude steel production was stagnant in 2016. However, Asia is the only major steel producing region showing moderate increase in steel production and India's steel production has shown the highest growth. World's steel demand grew 0.2% in 2016 and is set to grow 0.5% in 2017.

INDIAN STEEL INDUSTRY

During the year, India's steel production has shown the highest growth. Indian steel demand is set to grow at 5.7% in 2017 vis-à-vis 5.4% growth in 2016, highest among the large economies. India is set to beat Japan to second position in 2018. The steel vision by Government of India envisage creation of crude steel capacity of 300 MTPA by 2030-31 and per capita steel consumption of 160 kg against current 61 kg in India. In India mild steel consumption increase during 16-17 is expected at 76.78 MT - a likely growth of 4.5%. Consumption of TMT is estimated to be 27.4 MT (projected growth of 4%).

Though China continued to rule the world crude steel production and consumption scenario in 2016, the year saw the sustenance of India as the most stable market and a major global investment destination and the country maintained its global ranks of being the 3rd largest crude steel producer and 3rd largest consumer of finished steel during the year.

PERFORMANCE OF THE COMPANY

The Company is selling Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes in the open market. It’s flagship product - Ductile Iron Pipe has established its presence in the market and is contributing significantly to Company’s growth. Continuous efforts for reduction of production cost and improvement in operational efficiency has resulted in the Company being able to report positive Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) for the year.

Owing to the shutdown of the Oxygen Plant as a result of an accident and to sustain the production level, your Company had to resort to procurement of oxygen from Open Market which resulted in increase in cost and increase in operating and maintenance cost which adversely affected performance of the Company to some extent. Wide fluctuation in raw material prices, especially imported coking coal, also had a negative impact. Effective steps towards implementing better guidelines for operational procedure and precautionary measures thereto have been put in place. Continuous efforts were initiated to improve performance of the Company in both, quantitative and qualitative terms.

INDEX OF CHARGES:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G46675963	10493325	VISTRA ITCL (INDIA) LIMITED	17/04/2014	26/04/2017	-	195400000.0	IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EAST MUMBAI-827013IN
2	G49525967	10487072	VISTRA ITCL (INDIA) LIMITED	24/03/2014	26/04/2017	-	2986800000.0	IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EAST MUMBAI-827013IN
3	G44633055	10484687	VISTRA ITCL (INDIA) LIMITED	24/01/2014	26/04/2017	-	102593800000.0	IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EAST MUMBAI-827013IN
4	B28352359	10324558	SREI INFRASTRUCTURE FINANCE LIMITED	26/12/2011	-	-	5000000000.0	VISHWAKARMA,86C,TOPSIA ROAD (SOUTH), KOLKATA-700046, INDIA
5	B71995393	10261324	STATE BANK OF INDIA	11/01/2011	30/03/2013	-	8650000000.0	RELIANCE HOUSE34 J L NEHRU ROAD, KOLKATA-700071IN
6	G76984145	10547664	L&T FINCORP LIMITED	22/01/2015	31/03/2015	02/02/2018	400000000.0	L & T HOUSE, BALLARD ESTATE, MUMBAI-400001, MAHARSHTRA, INDIA
7	C39917752	10066956	IL & FS TRUST COMPANY LIMITED	29/08/2007	26/03/2013	12/01/2015	85120000000.0	IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EAST, MUMBAIMH400051IN
8	B95832622	10440089	The Bank of Baroda	28/06/2013	-	07/02/2014	72500000.0	3 WALCHAND HIRACHAND MARG, BELLARD PIER, MUMBAI-400001IN
9	B95589255	10372111	STATE BANK OF TRAVANCORE	30/07/2012	-	29/01/2014	560000000.0	CORPORATE FINANCE BRANCH 112-115 TULSIANI CHAMBERS, 212 NARIMAN POINT MUMBAI-400021IN
10	B95234266	10378639	STATE BANK OF HYDERABAD	19/09/2012	-	18/01/2014	800000000.0	CORPORATE FINANCE BRANCH 112-115 TULSIANI CHAMBERS, 212 NARIMAN POINT MUMBAI-400021IN

STATEMENT OF UNAUDITED FINANCIAL RESULT FOR THE QUARTER AND NINE MONTH ENDED 31^ST DECEMBER 2017

Particulars	Quarter Ended		Nine Month Ended
Income from Operations	31.12.2017 Unaudited	30.09.2017 Unaudited	31.12.2017 Unaudited
(a) Net sates/income from operations (Net of excise duty)	8483.864	7622.460	23838.033
(b) Other Operating Income	87.004	60.715	565.427
Total income from operations (net)	8570.868	7683.175	24403.460
Expenses
Cost of materials consumed	4734.433	4769.083	14765.610
Changes in inventories of finished goods. work-in-progress and stock in trade	1324.294	28.706	527.105
Excise duty on sale of goods	0.000	0.000	662.974
Employee benefits expense	373.039	365.343	1107.944
Finance Costs	2850.179	2827.124	8483.339
Depreciation and Amortization Expenses	1201.607	1210.493	3608.452
Other Expenses	1363.748	1648.999	4887.989
Total expenses	11847.300	10849.748	34043.413
Profit/ (Loss) from ordinary activities after finance cost but before exceptional items	(3276.432)	(3166.573)	(9639.953)
Exceptional items	0.000	(200.000)	(975.000)
Net Profit / (Loss) for the period	(3276.432)	(2966.573)	(8664.953)
Other Comprehensive Income
Items that will not be reclassified to profit or loss	0.579	0.579	1.738
Income tax relating to item that will not be reclassified to profit or loss	--	--	--
Other Comprehensive Income	0.579	0.579	1.738
Total Other Comprehensive Income for the period	(3275.853)	(2965.994)	(8663.215)
Paid up equity share capital (Face Value of INR 10/-each)	24092.350	24092.350	24092.350
Earnings per share (before extraordinary items) of INR 10/- each (not annualized):
(a) Basic	(1.36)	(1.23)	(3.60)
(b) Diluted	(1.36)	(1.23)	(3.60)

NOTES :

1. The Company's Integrated Steel & DI Pipe Plant is in the State of Jharkhand, India. A part of plant facility is still under construction and erection and cost of equipment, pre-operative and other expenditure related thereto has therefore been carried forward under capital work in progress.

2. The Company has incurred significant amount of losses leading to erosion of networth and current liabilities have exceeded the current assets of the Company. Interest and other terms and condition of repayment etc. as per the sanctioned CDR package could not be complied with and lenders in terms of RBI Circular dated 8th July 2015 and 24th September 2015, invoked “Strategic Debt Restructuring” (SDR) in respect of the Company. Pending implementation of SDR, State Bank of India in it’s capacity as financial creditor has filed a petition on 27th June 2017 under “Insolvency and Bankruptcy Code, 2016” (IBC) with Hon’ble National Company Law Tribunal, Kolkata Bench (NCLT). On 21st July 2017, the NCLT vide it’s order of even date admitted the said petition and Corporate Insolvency Resolution Process (CIRP) has been initiated in terms of IBC and related rules and regulation issued thereunder. Mr. Dhaivat Anjaria (having Registration No: IBBI/IPA-001/IPP00088/2017-18/10184) was appointed as Interim Resolution Professional (IRP) and thereafter has been confirmed to be Resolution Professional (RP) by Committee of Creditors (COC) constituted under IBC. Further, the NCLT, on the basis of the resolution passed by the COC and on the application made by the RP, has granted further extension of period of CIRP by 90 days w.e.f. 17th January, 2018. Expression of Interest (“EOI”) from prospective investors have been received during the quarter and the same are in the process of verification and evaluation. 

CIRP is currently in progress and as a part of the said process, resolution plan is to be prepared, approved by COC and implemented on approval thereof by NCLT. Pending this and measures to be adopted as a part of the resolution process, the financial statements has been continued to be prepared on a going concern basis.  

3. Interest on borrowings have been provided for considering the rates and terms and conditions stipulated originally as per CDR Package or otherwise stipulated/advised in this respect. Adjustments, if any required in this respect pursuant to the resolution plan will be given effect to on completion of CIRP and approval thereof by NCLT. 

4. Pending finalisation of Resolution Plan and certaintity as to the realisation of unused tax losses, adjustments for deferred taxation have not been given effect to during the period. 

5. This being interim financial statement certain disclosures/ adjustments etc. pending compilation and ongoing measures as stated above, in respect of the following could not be ascertained and given effect to during the period: 

a) Independent Confirmation of debit and credit balances including Trade Payables and reconciliation of these balances including Statutory liabilities and admitted claims with respect to financial and operational creditors; 

b) Non-recognition of additional interest (over and above as per 3 above), management fees and other charges in respect of Non-CDR lender SREI pending finalisation of amount payable in this respect; 

c) Impairment testing in respect of tangible and intangible assets; and 

d) Contingent Liability/ Provision if any with respect to matters related to Entry Tax and custom duty including interest etc., due to non-fulfilment of export obligations 

Necessary adjustments/disclosures, if any, with respect to above will be given effect to on determination of amount thereof.

6. In respect of Auditor’s qualification on the results of the previous quarter regarding certain disclosures/ adjustments etc. the following steps have been taken and consequential effect has been given in the results for the period: 

a) Physical Verification of Inventory and reconciliation resulting in decrease in Inventory by Rs. 1,509.41 lakhs (Net); 

b) Confirmation and Reconciliation of Bank balance including fixed deposits with Banks and Independent Confirmation in respect of Trade Receivables being circulated by the management, pending reconciliation on receipt thereof in due course of time; and 

c) Remuneration of Mr. Rama Shankar Singh, as a whole time director not being approved by the shareholder with effect from February 06, 2017 reversed during the period.

7. Exceptional items relate to the interim payment received from the insurers against 'Loss of profit' claim made by the company due to the accident at the oxygen plant in May, 2016. The balance amount will be recognised on acceptance thereof by the insurance authorities.

8. Considering the nature of the Company’s business operations and future prospects and possible capacity utilisation etc. on completion of entire plant facilities, no separate reportable segments (business and/ or geographical) in terms of IND AS 108 ‘Operating Segments’ has been considered necessary. 

9. Goods and Service Tax ("GST") has been implemented with effect from 1st July 2017 and therefore Revenue from Operations for the quarter ended 30th September 2017 and 31st December 2017 are net of GST. Revenue from operations and expenses for the quarter and nine months ended 31st December 2016 and year ended 31st March 2017 being inclusive of excise duty are not comparable with corresponding figures of quarter and nine months ended 31st December 2017.

10. The above financial results which have been prepared in accordance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular dated July 5, 2016 have been subjected to Limited Review by the Statutory Auditors. Since the powers of the board of directors has been suspended after commencement of CIRP, the above financial results have been certified by Mr. Sunil Katial, Chief Executive Officer and Mr. Ashutosh Agarwal, Chief Financial Officer and thereafter provided to the Resolution Professional. The Board of Directors of the Company was in charge of the business and conduct of the Company until 21st July 2017 i.e. the date when the CIRP process has commenced and IRP/Resolution Professional had been appointed and taken charge of operations of the company. The above results has been reviewed by the RP. The Resolution Professional has not conducted an independent verification of such statement. The Resolution Professional has therefore relied upon the certifications, representations and statements made by Mr. Sunil Katial, Chief Executive Officer, Mr. Ashutosh Agarwal, Chief Financial Officer in relation to the financial accounts and records.  

11. Previous periods' figures have been reclassified wherever appropriate to conform to current periods' presentation.

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Contingent Liabilities not provided for in respect of:
Central Excise & Service Tax	0.004	0.004
Customs Duty (under EPCG)	0127	0.074
Customs Duty (others	0.006	0.006
Sales Tax	0.016	0.013
Entry Tax	0.002	--
Guarantees given by banks on behalf of the Company	0.003	0.003
Right of Recompense of Lenders as per CDR Guidelines	0.085	0.061
Other pending claims & disputes	0.001	0.001
Claims filed against the company by the vendors 1	0.019	0.019
Note : The Company’s pending litigations comprises of claims against the company and proceedings pending with Statutory/ Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed contingent liabilities, where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial positions. Future cashflow, if any in respect of (a), (d), (e) and (f) is dependent upon the outcome of judgements/ decisions.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

· Railway Sidings

· Computer Software

PRESS RELEASE:

ELECTROSTEEL STEELS SPELLS OUT STEPS FOR COMPLETION OF ACQUISITION BY VEDANTA 

Jun 05, 2018,

Electrosteel Steels NSE 3.33 % Ltd today spelled out steps to be taken for completion of its takeover by Vedanta Star Ltd and subsequent delisting from stock exchanges.

In a filing to the BSE, Electrosteel Steels said since the liquidation value of the company as determined by the Resolution Professional is not sufficient to cover the debt of financial creditors in full, hence the liquidation value of the company in the hands of equity shareholder is nil. 

However, it added that "as per the Resolution plan, the shareholder of the company will be paid INR 0.19 per equity share they hold as on date (Pre-capital Reduction Price). 

"On completion of Transaction Steps, Vedanta Star Ltd will make the delisting offer to the then shareholders of the company. The equivalent per share exit price post completion of Transaction Steps is INR 9.54 per equity share (Post-capital Reduction Price)," Electrosteel Steels said. 

In March, Vedanta was declared as successful resolution applicant by the committee of creditors (CoC) for Electrosteel Steels Ltd under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016. 

NCLAT ALLOWS VEDANTA TO MAKE UPFRONT PAYMENT OF INR 53200.000 MILLION FOR ELECTROSTEEL 

KOLKATA, MAY 30, 2018

NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) today allowed Vedanta NSE -0.22 % Ltd to make an upfront payment of INR 53200.000 Million to lenders for acquiring Electrosteel NSE 3.33 % Steels. 

A two-member bench also said this payment would be subject to the outcome of the petition filed by Renaissance Steel challenging Vedanta's bid.

"During the pendency, the parties may act as far the approved resolution plan and the resolution applicant may deposit the upfront amount to Committee of Creditors subject to the order of the appeal," said the NCLAT bench headed by Chairman Justice S J Mukhopadhaya.

The bench also clarified that if Renaissance Steel wins the case, then the Committee of Creditors (CoC) will have to return the money to Vedanta. 

The appellate tribunal also reserved its order over Renaissance Steel's petition. 

In a regulatory filing, Vedanta Ltd said NCLAT "has allowed Vedanta Limited to acquire Electrosteel Steels Limited (ESL) by depositing the upfront payment to the Committee of Creditors". 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	INR
US Dollar	1	INR 68.15
UK Pound	1	INR 90.27
Euro	1	INR 79.35

INFORMATION DETAILS

Information Gathered by :	TEJ
Analysis Done by :	VAR
Report Prepared by :	TRUP

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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