MIRA INFORM REPORT

Report Date :

09.11.2012

IDENTIFICATION DETAILS

Name :	FACOR ALLOYS LIMITED
Registered Office :	Shreeram Nagar, P. O. Garividi, Vizianagaram-535101, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.05.2004
Com. Reg. No.:	043252
Capital Investment / Paid-up Capital :	Rs.195.548 millions
CIN No.: [Company Identification No.]	L27101AP2004PLC043252
TAN No.: [Tax Deduction & Collection Account No.]	VPNF00065C
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Ferro Alloys product.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 5796000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. There appears some dip in the income from operations and profits during 2012. However, financial condition of the subject appears to be strong and healthy. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB+ (Fund Based facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	December, 2011

Rating Agency Name	ICRA
Rating	A2 (Non fund Based Facilities)
Rating Explanation	Strong degree of safety and low credit risk.
Date	December, 2011

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 31-03-2012.

LOCATIONS

Registered Office/ Factory :	Shreeram Nagar, P. O. Garividi, Vizianagaram-535101, Andhra Pradesh, India
Tel. No.:	91-8952-282029 / 282038 / 232251 / 232233 / 233090,
Fax No.:	Not Available
E-Mail :	facoralloys@facorgroup.in facordelhi@facorgroup.in
Website :	www.facorgroup.in

DIRECTORS

As on 31.03.2012

Name :	Mr. R.K. Saraf
Designation :	Chairman and Managing Director
Name :	Mr. M.D. Saraf
Designation :	Vice Chairman
Name :	Mr. Yogesh Saraf
Designation :	Joint Managing Director
Name :	Mr. Ashim Saraf
Designation :	Joint Managing Director
Name :	Mr. C.N. Harman
Designation :	Director (Technical)
Name :	Mr. K. Jayabharath Reddy
Designation :	Director
Date of Birth/Age :	12.04.1937
Qualification :	Post Graduate in Economics Statistics from Delhi School of Economics and post Graduate in Economics from Madras University, Visiting Fellow Oxford University, U.K.
Date of Appointment :	01.09.2004
PAN No.:
Other Directorship:	· BPL Limited · TAJ GVK Hotels and Resorts Limited · Viceroy Hotels Limited · BPL Power Projects Limited · NCL Altex Seccolor Limited · JCT Electronics Limited · Indus Medicare Limited
Name :	Mr. P.V.R.K. Prasad
Designation :	Director
Name :	Mr. K.L. Mehrotra
Designation :	Director
Name :	Mr. A. S. Kapre
Designation :	Director
Date of Birth/Age :	01.05.1949
Qualification :	B.Tech, LLB
Date of Appointment :	2710.2007
Other Directorship:	· Facor Steels Limited · Ferro Alloys Corporation Limited · Facor Power Limited
Name :	Mr. Gautam Khaitan
Designation :	Director
Name :	Mr. Vibhu Bakhru
Designation :	Director
Date of Birth/Age :	02.11.1966
Qualification :	C.A., LLB
Date of Appointment :	20.03.2012
Other Directorship:	Hindustan Everest Tools Limited, Filatex India Limited Facor Steels Limited
Name :	Mr. Arye Berest
Designation :	Director
Date of Birth/Age :	27.11.1939
Qualification :	Qualified in Business Studies (Post Graduate), London Polytechnic
Date of Appointment :	01.02.2005
Other Directorship:	· Facor Steels Limited · Ferro Alloys Corpn. Limited

KEY EXECUTIVES

Name :	Mr. S.S. Sharma
Designation :	General Manager (Legal) & Company Secretary
Name :	Mr. M.S.S. Sarma
Designation :	Chief Executive
Name :	Mr. Dinesh Sardana
Designation :	Chief Financial Officer
Name :	Mr. O.P. Saraswat
Designation :	Dy. Chief Financial Officer
Name :	Mr. D.K. Pareek
Designation :	Director (Projects)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	23669186	12.10
Bodies Corporate	24545389	12.55
Sub Total	48214575	24.66
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	239387	0.12
Bodies Corporate	42567505	21.77
Sub Total	42806892	21.89
Total shareholding of Promoter and Promoter Group (A)	91021467	46.55
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5739	0.00
Financial Institutions / Banks	42922	0.02
Insurance Companies	8220	0.00
Foreign Institutional Investors	120	0.00
Sub Total	57001	0.03
(2) Non-Institutions
Bodies Corporate	16434190	8.40
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	74220722	37.96
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	10720324	5.48
Any Others (Specify)	3093651	1.58
Non Resident Indians	3093651	1.58
Sub Total	104468887	53.42
Total Public shareholding (B)	104525888	53.45
Total (A)+(B)	195547355	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	195547355	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ferro Alloys product.

Products :

ITC CODE NO.	PRODUCT/ SERVICES DESCRIPTION
720241-00	FERRO CHROME CONTAINING BY WEIGHT MORE THAN 4%C
720249-00	FERRO ALLOYS OTHERS

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India

· Central Bank of India

· State Bank of India

· Syndicate Bank

· State Bank of Bikaner and Jaipur

· Indian Overseas Bank

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Cash Credit Accounts	183.447	203.937
Bills Discounted	145.315	152.427
Total	328.762	356.364
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Deferred payment liabilities	3.343	5.010
Total	3.343	5.010

Note:

Secured by hypothecation of stocks of raw-materials, finished products, book debts, and other receivables and by way of second charge on fixed assets of the Company by deposit of title deeds in respect of immovable properties and guaranteed by two Directors.

Banking Relations :	--
Auditors :
Name :	Salve and Company Chartered Accountants
Internal Auditors:
Name :	Rao and Kumar Chartered Accountants
Subsidiaries :	· Best Minerals Limited · Facor Electric Limited · BEC Power Private Limited · Facor Minerals Pte Limited
Related Parties:	· Ferro Alloys Corporation Limited · Facor Steels Limited · Rai Bahadur Shree Ram And Company Private Limited · Godawaridevi Saraf and Sons · Saraf Bandhu Private Limited · GDP Infrastructure Private Limited · Shreeram Shipping Services Private Limited · Smt Godawaridevi Saraf Janseva Trust · Shri Durgaprasad Saraf Charitable Trust · Shri R.B. Shreeram Religious and Charitable Trust · Vidharbha Iron and Steel Corporation Limited · Facor Power Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
360000000	Equity Shares	Re.1/- each	Rs.360.000 Millions
3900000	0.01% Redeemable Preference Shares	Rs.100/- each	Rs.390.000 Millions
	Total		Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
195547355	Equity Shares	Re.1/- each	Rs.195.548 Millions

The details of Shareholders holding more than 5% shares:

Name of the Shareholder	31.03.2012
	No. of Shares	% held
Rai Bahadur Shree Ram And Company Private Limited	22,980,831	11.75%

The reconciliation of number of shares outstanding at the beginning and at the end of the reporting period:

Particulars	31.03.2012
Shares outstanding at the beginning of the year	195,547,355
Shares issued during the year	--
Shares bought back during the year	--
Shares outstanding at the end of the year	195,547,355

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		195.548	195.548	195.548
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1253.578	1186.440	900.716
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1449.126	1381.988	1096.264
LOAN FUNDS
1] Secured Loans		328.762	356.364	25.696
2] Unsecured Loans		3.343	5.010	5.551
TOTAL BORROWING		332.105	361.374	31.247
DEFERRED TAX LIABILITIES		54.870	47.109	23.324
TOTAL		1836.101	1790.471	1150.835
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		270.580	307.092	171.575
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		546.847	187.601	156.988
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	275.291	531.222	231.271
	Sundry Debtors	299.515	257.604	186.239
	Cash & Bank Balances	661.340	408.554	513.351
	Other Current Assets	8.689	5.326	2.504
	Loans & Advances	367.252	834.687	469.566
Total Current Assets		1612.087	2037.393	1402.931
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	346.384	469.269	332.940
	Other Current Liabilities	111.384	92.844	193.849
	Provisions	135.645	179.502	53.870
Total Current Liabilities		593.413	741.615	580.659
Net Current Assets		1018.674	1295.778	822.272
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1836.101	1790.471	1150.835

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3786.363	3953.746	2670.773
		Other Income	39.477	36.384	22.736
		TOTAL (A)	3825.840	3990.130	2693.509
Less	EXPENSES
		Cost of Materials Consumed	2081.465	1961.218	2438.466
		Changes in Inventories of Finished Goods and Stock-in-Process	18.030	(0.557)
		Employee Benefits Expense	224.070	191.066
		Other Expenses	1277.587	1297.033
		TOTAL (B)	3601.152	3448.760	2438.466
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		224.688	541.370	255.043
Less	FINANCIAL EXPENSES (D)		81.972	21.701	13.629
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		142.716	519.669	241.414
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.151	21.635	22.785
	PROFIT BEFORE TAX (E-F) (G)		101.565	498.034	218.629
Less	TAX (H)		34.427	166.856	78.318
	PROFIT AFTER TAX (G-H) (I)		67.138	331.178	140.311
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.637	(236.087)	(1968.088)
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	25.000	(1625.894)
		Dividend	0.000	39.109	29.332
		Tax on Dividend	0.000	6.345	4.872
	BALANCE CARRIED TO THE B/S		91.775	24.637	(236.087)
	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods on F.O.B. basis	2621.716	3000.021	2069.998
	TOTAL EARNINGS		2621.716	3000.021	2069.998
	IMPORTS		251.300	312.704	178.879
	Earnings Per Share (Rs.)		0.34	1.69	0.72

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Net Sales	434.810
Total Expenditure	454.790
PBIDT (Excl OI)	(19.980)
Other Income	10.670
Operating Profit	(9.310)
Interest	4.630
Exceptional Items	0.000
PBDT	(13.940)
Depreciation	8.990
Profit Before Tax	(22.930)
Tax	(6.530)
Provisions and contingencies	0.000
Profit After Tax	(16.400)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(16.400)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.75	8.30	5.21
Net Profit Margin (PBT/Sales)	(%)	2.68	12.60	8.19
Return on Total Assets (PBT/Total Assets}	(%)	5.39	21.24	13.89
Return on Investment (ROI) (PBT/Net worth)		0.07	0.36	0.20
Debt Equity Ratio (Total Liability/Net worth)		0.64	0.80	0.56
Current Ratio (Current Asset/Current Liability)		2.72	2.75	2.42

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	------
22]	Litigations that the firm / promoter involved in	------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	------
26]	Buyer visit details	------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CORPORATE INFORMATION

Facor Alloys Limited ("The Company") is a Public Limited Company incorporated in India under the Companies Act, 1956. It is part of worldwide reputed FACOR Group of Industries. The Company is listed at Bombay Stock Exchange. The Company, one of the India's largest producers of Ferro Alloys Products produces Ferro Alloys product at its works in Andhra Pradesh and caters both domestic and international markets. The product is used in the manufacture of Steel/Stainless Steel.

OVERALL PERFORMANCE

Ferro Alloys is one of the intermediate products used as additives and de-oxidising/de-sulfurizing agents in steel making. The growth of the Ferro Alloy industry is directly linked to the growth of the steel industry. During the first half of year overall the global steel industry witnessed steady growth. Despite financial turbulence in the Euro zone, weak private demand in the United States and events in Japan and the Middle East, the growth in global steel demand was driven by increased demand from key steel end-user industries specially from automotive sector. This resulted in increase in demand for Ferro Chrome.

However the second half of 2011-12 witnessed weakness in international demand due to a slowdown in China combined with the effects of the European debt crisis. In fact, the second half saw prices go down to the low 90's (cents per pound of chrome content).

The prolonged economic slowdown in the developed world, particularly in the European Union and the UK has resulted in a significant decline in steel consumption in several geographies in the western hemisphere. Steel plants are being closed or mothballed to conserve costs and to control over-supply. In the first few months of 2012-13 also, apparent Ferro Chrome demand from steel plants remained subdued due to the uncertain economic climate. On account of this, the demand and prices of chrome products in the domestic market too were adversely affected.

On account of above and other factors, during the year under consideration the production and sale of ferro chrome were lower as compared to the previous year 2010-2011. Owing to unfavourable market conditions, the overall turnover of the Company declined from Rs.3885.900 Millions in 2010-2011 to Rs.3674.400 Millions in 2011-2012. Exports were Rs.2871.300 Millions as against Rs.3099.000 Millions in the previous year. The Company derived 78% of its total sales from exports and during the year under review foreign currency earnings in rupee terms was Rs 2621.700 Millions. The profit before tax too was lower at Rs. 101.600 Millions as compared to Rs. 498.000 Millions in the previous year recording a steep fall of 80%.

INDUSTRY STRUCTURE, DEVELOPMENT AND OTHER RELATED MATTERS

Ferro Chrome is a value added intermediate product which imparts the noncorrosive property to stainless steel, hence growth of Ferro Alloys industry is primarily driven by the growth and progress of Steel Industry. Growth in the Indian economy is expected to remain strong. The automotive segment, is expected to grow by 11-13% in Financial Year 2012-13. As per world steel forecasts, steel demand in India should grow by 6.9% in 2012 and the growth should accelerate to 9.4% in 2013. Further the low per capita consumption of stainless steel in India which was 2.1 kg as compared to 7.5 kg in China and a world average of 4 kg, all in the 2011-12 fiscal year, constitutes a huge opportunity for growth in this sector. Indian stainless steel consumption will grow at a compounded annual growth rate of 9.7 percent reaching 3.4 million tons per annum (mtpa) by 2015, outstripping global consumption growth of 6 percent to 34.12 million tons which is a welcome sign for the Ferro Alloys Industry as consumption of Ferro Alloys will also increase. India’s total annual production of ferro chrome is around 1.2 million tons (mt), of which around 0.7 mt is exported. As against monthly export of around 60,000 tons on an average current export is only around 40,000 to 45,000 tons per month as the long term contract materials are still going, while spot deals are not there. Further, out of the total export of around 0.7 mt of ferro chrome annually, the maximum quantity goes to China. On an average around 70 percent of the total export goes to Far East Asian countries and the balance 30 percent to Europe, US and other places. However, the prices of ferro alloys have improved by about 10 to 30 percent in second half of the year 2012-13 on slight improvement in demand from steel makers in Europe and the US even as demand from China continued to remain weak. Presently, the supply of ferro chrome is higher than domestic demand and unless 40-50 percent of ferro chrome that is produced in India is exported, the price will continue to remain under pressure.

The global economy is also on a recovery path due to concerted policy actions around the world. Chinese GDP growth and targets remains strong. Chinese steel demand growth is expected to be moderate as the government pursues economic restructuring. As such, steel demand in China is projected to grow by 4% every year in the next two years. Overall, the world GDP is expected to grow by 3.3% in 2012. Steel prices have recovered from the lows reached in December last year with increased buying activity seen across regions. However, the momentum seems to have lost steam and with the economic conditions in many parts of the world not looking strong, steel capacity utilisation remains below 80%. Looking ahead, global steel market developments are likely to remain generally positive, but with lower growth in 2012 compared to 2011. For 2012 as a whole, global steel demand is forecasted to grow by a further 4% to reach 1,422 million tonnes. China, India and other emerging markets will continue to drive demand but recent market developments suggest likely slackening of demand. South Africa has a crucial role to play in the ferro chrome industry. There has been significant increase in power tariffs over the last 4 years. As a result, South Africa’s share of the total ferro chrome production worldwide now stands at approximately 40%.

At the same time, the Indian Ferro Alloys Industry is concerned about the insufficient availability of good quality raw-material mainly Chrome Ore, Coke and availability of cheaper imported Ferro Alloys. Further the problems of this industry are aggravated because of the high input cost of power as well as ore and stiff competition in the domestic and export markets. Since the ferro alloy industry is a power intensive unit, the power cost is about 35-40 percent of its total production cost and repeated power tariff hikes by state run power utility company have put the industry in a fix. In addition to the higher power tariff, the frequent power cuts in Andhra Pradesh are affecting the industry badly. At such high power tariff, there is hardly any margin and viability in the production of ferro alloys. These issues need to be addressed by the Government to enable the Ferro Alloys Producers to compete in the Domestic as well as International Markets.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER 2012

Sr. No.	Particulars	Quarter ended 30.09.2012 (Unaudited)	Quarter ended 30.06.2012 (Unaudited)	Half Year Ended 30.09.2012 (Unaudited)
1	Income From Operations a) Net Sales / Income from operations (Net of Excise Duty) b) Other Operating Income	412.894 21.921	561.274 199.930	974.168 41.851
	Total Income from Operations (Net)	434.815	581.204	1016.019
2	Expenses: a) Cost of materials consumed b) Purchases of stock-in-trade c) Changes in inventories of finished goods, work in progress and stock-in-trade d) Employee benefits expense e) Depreciation and amortisation expense f) Power and fuel h) Other Expenditure	215.141 -- (12.762) 51.262 8.993 121.376 79.770	272.997 -- -- (45.764) 50.882 8.826 151.814 96.733	488.138 -- -- (58.526) 102.144 17.819 273.190 176.503
	Total Expenses	463.780	535.488	999.268
3	Profit / (-Loss) from Operations before Other Income, Finance costs and Exceptional Items (1-2)	(28.965)	45.716	16.751
4	Other Income	10.665	(2.136)	8.529
5	Profit / (-Loss) from Ordinary Activities before Finance Cost & Exceptional Items (3+4)	(18.300)	43.580	25.280
6	Finance costs	4.632	5.271	9.903
7	Profit / (-Loss) from Ordinary Activities after finance costs but before Exceptional Items (5+6)	(22.932)	38.309	15.377
8	Exceptional Items	---	---	---
9	Profit (+)/ Loss (-) from Ordinary Activities before Tax (7+8)	(22.932)	38.309	15.377
10	Tax expenses	(6.534)	12.626	6.092
11	Net Profit (+)/ Loss(-) from Ordinary Activities after Tax (9±10)	(16.398)	25.683	9.285
12	Extra Ordinary Items (net of Tax Expenses)	---	---	---
13	Net Profit (+) / Loss (-) for the period (11±12)	(16.398)	25.683	9.285
14	Paid-up Equity Share Capital (Face Value of Re.1 per share)	195.548	195.548	195.548
15	Reserve excluding Revaluation Reserves as per Balance sheet of previous accounting year
16	Earning par share (before extraordinary Items) (of Re. 1/- each) (not annualised) (a) Basic (b) Diluted Earning par share (after extraordinary Items) (of Re. 1/- each) (not annualised) (a) Basic (b) Diluted	(0.08) (0.08) (0.08) (0.08)	0.13 0.13 0.13 0.13	0.05 0.05 0.05 0.05
	PART II
1	Public Shareholding
	Number of shares	104525888	104567674	104525888
	Percentage of shareholding	53.45 %	53.47 %	53.45 %
2	Promoters and promotor group shareholding a) Pledged/Encumbered -Number of Shares -Percentage of shares (as a % of the total shareholding of promoter and promoter group) -Percentage of shares (as a % of the total share capital of the company) b) Non-encumbered -Number of Shares -Percentage of shares (as a % of the total shareholding of promoter and promoter group) -Percentage of shares (as a % of the total share capital of the company)	-- -- -- 91021467 100.00 % 46.55 %	-- -- -- 90979681 100.00 % 46.53 %	-- -- -- 91021467 100.00 % 46.55 %

Particulars		Quarter Ended 30.09.2012
	INVESTOR COMPLAINTS Pending at the beginning of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved at the end of the quarter	- 3 3 -

NOTE: 1) Unaudited statement of Assets and Liabilities as at 30th September, 2012

Particulars	30.09.2012
ASSETS
Shareholders' Funds
Share Caplital	195.548
Reserves and Surplus	1262.862
	1458.410
Non-Current Labilities
Long-Term Borrowings	3.343
Deferred Tax Liabilities (Net)	50.824
Long-Term Provisions	120.596
	174.763
Current Liabilities
Short-Term Borrowings	199.231
Trade Payables	156.451
Other Current Liabilities	71.924
Short-Term Provisions	5.922
	433.528
Total	2066.701
LIABILITIES
Non-Current Assets
Fixed Assets Tangible	255.566
Non-Current Investments	575.390
Long-Term Loans and Advances	99.646
	930.602
Current Assets
Inventories	569.909
Trade Receivables	142.303
Cash end Cash Equivalents	118.370
Short-Term Loans and Advances	302.783
Other Current Assets	2.734
	1136.099
Total	2066.701

2) The Company is engaged in the business of Ferro Alloys only and is managed organisationally as a single unit. Hence there is no separate reportable segment as per Accounting Standard AS-17on Segment Reporting issued by the Institute of Chartered Accountants of India.

3) The Statutory Auditors have carried out the limited review of the results for (he quarter ended 30th September. 2012.

4) The above results, as reviewed by the Audit Committee, have been approved by the Board of Directors of the Company at Itsmeeting held on 26th October, 2012.

5) Previous period figures are regrouped / rearranged wherever necessary to facilitate comparison.

CONTINGENT LIABILITIES:

(a) Claims against the Company not acknowledged as debts, since disputed Rs. 2.127 Millions (Previous Year Rs. 2.127 Millions).

(b) Counter guarantees in favour of Consortium Banks in respect of their outstandings with Facor Steels Limited. Due to the nature of the liability, its financial impact is not ascertainable.

FIXED ASSETS:

· Land Freehold

· Mines and Quarries Freehold

· Buildings

· Railways Sidings

· Plant and Machinery

· Office and Other Equipments

· Furniture and Fixtures

· Vehicles

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 t 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.54.44
UK Pound	1	Rs.87.00
Euro	1	Rs.69.48

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.