Major Developments

Major developments that have taken place in the company during the last few years:

1. The Company had become debt free in 2002 after repaying the whole of term debt of INR 326.0 million on schedule, a distinction not achieved by any Pig Iron manufacturer in India. The Pig Iron unit once again had become debt free in September 2008, after repayment of term loans availed for modernization and expansion.

2. The company has successfully implemented a Modernization and Expansion project of its Brownfield operations involving capacity addition to Pig Iron from 120000 tpa to 210000 tpa and addition of captive power generation of 8.43 MW to the existing facility of 3 MW, with an outlay of INR 450 million.

3. The company implemented a project for manufacture of 300000 tpa of Metallurgical Coke with 30 MW Co-generation Power with an outlay of INR 2200 millions, which is now operational.

4. The company has made in March 2008 a preferential issue of 4900000 Equity Shares to Stemcor Group at a issue price of Rs.60 per share and 625000 Equity Shares and !575000 Share Warrants to Promoters Group at a issue of Rs.60 per instrument. The equity shares were issued for cash and share warrants were issued with option to convert the same into equity shares within eighteen months from the date of allotment and after full payment of issue price. The promoters subscribed and paid up fully the share warrants money at Rs.60/- per warrant inspite of the fact that the market price of share is fifty percent of the issue price. The company raised Rs.426 million from equity during the last one and a half year.

5. The company has taken up expansion of Greenfield project for enhancing the Metallurgical Coke capacity to 450000 tpa and for augmentation of additional power of 10 MW at an estimated outlay of Rs.1065 million. The expansion was financed by debt of Rs.840 million and preferential issue proceeds of Rs.225 million. The Company has also taken up a project to debottleneck the idle capacity in the turbine generating by adding one CFBC Boiler which will give additional 25 MW of power at an estimated outlay of Rs.500million. These projects were financed by term debt of Rs.1240 million. The additional Metallurgical Coke capacity of 150,000 tpa was commissioned in December 2010 and additional power generating capacity to 50 MW in March 2012.

6. The Company is implementing an integrated project involving a capital expenditure of Rs.5870 million for manufacture of Ductile Iron pipes 210,000 tpa and 25,000 tpa Castings unit for making DI Pipe Fittings as a forward integration to Pig Iron making on the one hand and sinter plant, 30 captive thermal plant apart from modernisation of blast furnace as a backward integration. The project is being financed by term debt of Rs.4660 million and balance of Rs.1210 million by way of equity of Rs.690 million and Rs.520 million from internal accruals. The company has already raised equity of Rs.300 million and term debt has been fully tied up. The sinter plant and blast furnace modernization has been completed and the DI Pipe making and fittings and thermal power plant by April 2014.

7. The company has made preferential issue of 800000 equity shares to Stemcor group and 420000 Share warrants to Ganapati Adusumilli Fininvest Private Limited (GAFIL) a promoter group company at an issue price of Rs.60/- per share. GAFIL already exercised option of conversion of 4200000 share warrants by paying full consideration of Rs.252 million.

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