AC Choksi Share Brokers Private Limited

A C ChoksiShare Brokers Private LimitedA C Choksi Institutional Research | Initiation Report|MINING MOILApril 26, 2011Reliance on Few CustomersMOIL is heavily dependent on a few customers for its businessIt derives 51.5% of its revenues from its top ten customers. MOIL’s sales ofmanganese ore depends on a few customers heavily. Its top ten customers accountfor approximately 51.5% of sales of manganese ore for FY 2010. It sells themanganese ore to ferro alloy manufacturers that supply ferro alloys directly to steelplants. Approximately 99.0% of manganese ore production inFY 2010 was sold to manganese ore alloy manufacturers.Two customers account for nearly 40% of the sales to the top ten customers.The key customers of MOIL include Maharashtra Elektrosmelt Limited and BhilaiSteel Plant, which are both state entities that are subsidiaries of SAIL and whichtogether accounted for 22.1% of the manganese ore sales revenue in Fiscal 2010.The loss of revenues from such customers, in particular, Maharashtra ElektrosmeltLimited and Bhilai Steel Plant, might have an adverse impact on its results ofoperations and financial condition and on our forecasts.Source: MOIL, RHP, A C Choksi Institutional Research_____________________________________________________________________________________ A C Choksi Institutional Researchresearch@acchoksi.com 11