MIRA INFORM REPORT

Report Date :

09.12.2011

IDENTIFICATION DETAILS

Name :	SHARP FERRO ALLOYS LIMITED
Registered Office :	Muza Kamalpur, Nachan Road, Durgapur – 713204, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.07.1990
Com. Reg. No.:	21-093185
Capital Investment / Paid-up Capital :	Rs.143.840 Millions
CIN No.: [Company Identification No.]	U27101WB1990PLC093185
IEC No.:	0598034897
TAN No.: [Tax Deduction & Collection Account No.]	CALS14866F
PAN No.: [Permanent Account No.]	AAHCS8998M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of Ferro Alloys and Steel Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Ashok Aggarwal
Designation :	Chief Financial Officer
Contact No.:	91-9311240841
Date :	07.12.2011

LOCATIONS

Registered Office/ Factory :	Mauza – Kamalpur, Nachan Road, Kamalpur, Durgapur- 713204 West Bengal, India
Tel. No.:	91-343-2564187 / 2562776 / 2544079
Fax No.:	91-343-2566949
Email:	marketing@sharpferro.com infoimport@sharpferro.com
Web Site:	www.sharpferro.com
Head Office :	301-302, Time House, 5 - Commercial Complex, Wazirpur Industrial Area , Delhi – 110052, India
Tel. No.:	91-11-27377131 to 35
Fax No.:	91-11-27377130
E-Mail :	sharpferro@yahoo.co.in info@sharpferro.com sharpferro_cfo@yahoo.com
Branch Office 1 :	Room No. 35, 8th Floor, Fortune Chamber 23 'A', N.S. Road, Kolkata- 700001, West Bengal, India
Tel. No.:	91-33-22311570
Fax No.:	91-33-22311571
Branch Office 2 :	Shed No.3, Sanjana Estate, Kothari Char Rasta, Gandhinagar – 382721, Gujarat, India

DIRECTORS

As on 24.09.2011

Name :

Mr. Tushar Rawat

Designation :

Managing Director

Address :

A -255, Derawal Nagar, G T Karnal Road, Delhi – 110 009, India

Date of Birth/Age :

18.08.1981

Date of Appointment :

05.07.2003

DIN No.:

00512880

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U27101WB1990PLC093185	Sharp Ferro Alloys Limited	Managing director	1/10/2009	5/07/2003	-	Active	NO
U27101DL2005PTC131779	Alliance Ferro Tech Private Limited	Director	3/01/2005	3/01/2005	27/08/2008	Active	NO
U17290DL1995PLC071542	Asia Pacific Globex Limited	Director	10/10/2005	10/10/2005	-	Active	NO
U27100DL2010PLC202583	Sharp Ferro Alloys (Vizag) Limited	Director	12/05/2010	12/05/2010	-	Active	NO
U27109DL2004PTC125134	Sharp Ispat Private Limited	Director	15/05/2010	15/05/2010	-	Active	NO

Name :

Mr. Lakshmi Narayan Gupta

Designation :

Director

Address :

7 – E, Dimpal Court, 26, Theater Road, Kolkata, West Bengal, India

Date of Appointment :

17.08.2006

DIN No.:

00856808

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U27101WB1990PLC093185	Sharp Ferro Alloys Limited	Whole-time director	1/10/2010	17/08/2006	-	Active	NO
U27100DL2010PLC202583	Sharp Ferro Alloys (Vizag) Limited	Director	12/05/2010	12/05/2010	-	Active	NO

Name :

Mrs. Kamla Devi

Designation :

Director

Address :

A -255, Derawal Nagar, G T Karnal Road, Delhi – 110 009, India

Date of Birth/Age :

03.11.1934

Date of Appointment :

20.04.2009

DIN No.:

02650633

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U17290DL1995PLC071542	Asia Pacific Globex Limited	Additional director	20/04/2009	20/04/2009	-	Active	NO
U27101WB1990PLC093185	Sharp Ferro Alloys Limited	Director	22/09/2009	20/04/2009	-	Active	NO
U27100DL2010PLC202583	Sharp Ferro Alloys (Vizag) Limited	Director	12/05/2010	12/05/2010	-	Active	NO
U27109DL2004PTC125134	Sharp Ispat Private Limited	Director	15/05/2010	15/05/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Mr. Kailash C Lath	10
Mr. Naresh K Dawar	10
Mr. Amrit Pal	10
Mr. Narendra Khanna	10
Mr. Atul Bagla	10
OPRK Ferro Alloys Limited, India	537000
Asia Pacific Globex Limited, India	5631000
Musha Trading and Exports Private limited, India	2517120
Om Prakash Rawat HUF	633605
Mr. Tushar Rawat	2120940
Mrs. Neelam Rawat	569335
Mrs. Somya Rawat	128950
Mrs. Sheela Rawat	667000
Sunshine Vinimay Private Limited, India	1089000
Kamla Devi	760000
Naresh Rawat	130000
Total	14784000

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2011

Category	Percentage
Bodies corporate	66.11
Directors or relatives of Directors	33.89
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Ferro Alloys and Steel Products.

Products :

Ferro Manganese

• High carbon ferro manganese
• Medium carbon ferro manganese

Silico Manganese

• High Carbon Silico Manganese 60/14
• High Carbon Silico Manganese 65/15

Steel

• Ms Billet

Item Code	Product description
7202.44	Ferro Alloys

Exports :

Products :

· Ferro Alloys

· Steel Products

Countries :

European Countries

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash/ Credit

Purchasing :

Cash/ Credit

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ferro Alloys	MTs	136400	42500	34197.800
Slags	MTs	--	--	27146.710
Mild Steel	MTs	200000	70000	667.229
Scrap	MTs	--	--	252.25

GENERAL INFORMATION

Customers :

Manufacturing Company

No. of Employees :

Not Available

Bankers :

· Oriental Bank of Commerce, Nachan Road, Benachity, Durgapur – 713213, West Bengal, India

· The Bank of Rajasthan Limited, Gurudwara Road, Karol Bagh, New Delhi – 110005, India

· Bank of India (Lead Bank), New Delhi Corporate Banking Branch, 37, Shaheed Bhagat Singh Marg, Connaught Place, New Delhi – 110001, India

• State Bank of Bikaner and Jaipur, CNW Branch , Barakhamba Road, New Delhi, - 110001,India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. in Millions)
Term loans from Banks		243.809
Working capital Facilities from bank	611.983	338.688
Other secured loan		4.589
Total	611.983	587.086
Unsecured Loan	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. in Millions)
Inter Corporate Deposit	59.555	31.250
Standard Chartered Bank *		41.103
Total	59.555	72.353

Note :

1. Term Loan are secured against Hypothecation of all Immovable and movable plant and machinery, equipment, Factory land and building and other misc assets (Both present and Future) at Durgapur

2. Working capital credit limit are secured against hypothecation of raw material, work-in-progress, consumable, semi finished and finished goods and all present and future book debts, receivable bills in respect of Ferro Alloys and Steel business along with second charge on fixed assets as stated above

3. Loan taken from Slandered chartered bank are recurred against first charge over money advanced for purchase of other fixed assets.

4 Others Secured loans are secured against the respective assets purchased

Above loans are further secured against personal guarantee of directors of the company

* Loan from standard chartered bank is secured against equitable mortgage of residential property belonging to relative of directors. Personal guarantee of directors have also been given.

Banking Relations :	--
Auditors :
Name :	P C Bindal and Company Chartered Accountants
Address :	101, Sita Ram Mansion, 718/21, Joshi Road, Karol Bagh, New Delhi – 110 005, India
Tel. No.:	91-11-23549822 / 23
Fax No.:	91-11-23623829
E-Mail :	pcbindal@rediffmail.com
PAN.:	AAAFP9359H
Related Parties :	Asia Pacific Globex Limited, India Alkmet Alloys India Private Limited

CAPITAL STRUCTURE

As on 24.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15500000	Equity Shares	Rs.10/- each	Rs.155.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14784000	Equity Shares	Rs.10/-each	Rs.147.840 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15500000	Equity Shares	Rs.10/- each	Rs.155.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14384000	Equity Shares	Rs.10/-each	Rs.143.840 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		147.840	143.840	139.000
2] Share Application Money		29.400	0.000	0.000
3] Reserves & Surplus		373.176	288.932	227.895
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		550.416	432.772	366.895
LOAN FUNDS
1] Secured Loans		611.983	587.086	396.470
2] Unsecured Loans		59.555	72.353	55.330
TOTAL BORROWING		671.538	659.439	451.800
DEFERRED TAX LIABILITIES		71.539	56.370	34.945
TOTAL		1293.493	1148.581	853.640
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		715.803	616.633	399.552
Capital work-in-progress		0.000	53.419	99.312
INVESTMENT		9.600	2.800	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		487.106	360.421
	Sundry Debtors		209.234	137.570
	Cash & Bank Balances		90.143	38.721
	Other Current Assets		0.000	0.000
	Loans & Advances		85.276	64.703
Total Current Assets			871.759	601.415
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		331.781	212.330
	Current Liabilities		50.839	22.842
	Provisions		13.410	11.467
Total Current Liabilities			396.030	246.639
Net Current Assets		568.090	475.729	354.776
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1293.493	1148.581	853.640

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3168.992	1673.721	1539.135
		Other Income		30.641	15.027
		TOTAL (A)	3168.992	1704.362	1554.162
Less	EXPENSES
		Manufacturing and other Expenses		1451.912	1372.386
		Personnel Expenses		23.844	15.918
		Administrative and Selling Expenses		55.356	42.940
		TOTAL (B)		1531.112	1431.244
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			173.250	122.918
Less	FINANCIAL EXPENSES (D)		3067.860	84.311	55.413
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(including financial expenses and depreciation)	88.939	67.505
Less/ Add	DEPRECIATION/ AMORTISATION (F)			25.222	15.674
	PROFIT BEFORE TAX (E-F) (G)		101.132	63.717	51.831
Less	TAX (H)		32.888	22.040	18.925
	PROFIT AFTER TAX (G-H) (I)		68.244	41.677	32.906
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	155.495	122.589
	BALANCE CARRIED TO THE B/S		NA	197.172	155.495
	TOTAL EARNINGS		NA	681.157	784.704
	IMPORTS
		Raw Materials	NA	400.673	45.476
	TOTAL IMPORTS		NA	400.673	45.476
	Earnings Per Share (Rs.)		4.67	2.92	2.50

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.15	2.45	2.12
Net Profit Margin (PBT/Sales)	(%)	NA	3.81	3.37
Return on Total Assets (PBT/Total Assets}	(%)	NA	4.28	5.18
Return on Investment (ROI) (PBT/Networth)		0.18	0.15	0.14
Debt Equity Ratio (Total Liability/Networth)		NA	2.44	1.90
Current Ratio (Current Asset/Current Liability)		NA	2.20	2.44

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U2710WB1990PLC093185
Name of the company	SHARP FERRO ALLOYS LIMITED
Address of the registered office or of the principal place of business in India of the company	Mauza – Kamalpur, Nachan Road, Durgapur – 713 204, west Bengal, India E-Mail : sharpferro_cfo@yahoo.com
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property
Particular of charge holder	Bank of India (Lead Bank) New Delhi Corporate Banking Branch, 37, Shaheed Bhagat Singh Marg, Connaught Place New Delhi 110001, India E- Mail: corporatebanking.newdelhi@bankofindia.co.in
Nature of instrument creating charge	Joint Deed of Hypothecation
Date of instrument Creating the charge	21.08.2010
Amount secured by the charge	Rs.120.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of repayment In 60 equated monthly installments repayable from 6 months after COD or July, 2011 whichever is earlier Margin 31.43% Extent and operation of the charge 100% Others The said charge is hypothecated to secure additional Term Loans aggregating to Rs.120.000 Millions granted by Bank of India Additional Term Loan Consortium to the Company
Particulars of the present modification	In addition the said facilities will also be secured by pari-passu charge by way of equitable mortgage of factory land at C.S. Plot No. 220, 221 (P), 222 (P) Khatian NO.176,37,972 Mouza Kamalpur, JL No. 47, Touzi No. 12, P.S. Durgapur, District Burdwan, West Bengal measuring 20 acres along with building and structures constructed thereon

CONTINGENT LIABILITIES:

(Rs. In Millions)

Sr. No.	Particulars	31.03.2010	31.03.2009
A)	In respect of claims against the company not acknowledged as debts:
i)	Disputed Electricity Demand	18.082	18.082
ii)	Sales Tax Demand against which appeal has been filed with the competent authority	50.292	17.234
iii)	Service Tax Demand against which appeal has been filed with the competent authority	5.998	0.000
iv)	ESI and PF Demand against which appeal has been filed with the competent authority	0.527	0.527
v)	Demand raised by DVC against payment of electricity duty. Stay order has been granted by City Civil Court, Kolkata	8.914	0.000
vi)	Income Tax demand for the assessment year 2007-08 against which appeal has been filed with the competent authority (Net of Amount paid under protest)	36.951	0.000
B)	In respect of Letter of credit and guarantee issued by banks
i)	Letters of credit (Net of Margin)	76.658	32.169
ii)	Bank Guarantee (Net of Margin)	8.619	10.069

FIXED ASSETS:

· Land and site development

· Building

· Plant and machinery

· Electric Installation

· Electric Saving Devices

· Furniture and fixtures

· Electrical Equipment and fitting

· Furniture and Fixtures

· Vehicles

· Office equipment

· Computers

· Borewell

· Lab equipment

· Pay Loader

· Pollution Control

· Equipment

· Weigh bridge

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	Indian Rupees
US Dollar	1	Rs.51.78
UK Pound	1	Rs.81.32
Euro	1	Rs.69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.