MIRA INFORM REPORT

Report Date :

06.02.2013

IDENTIFICATION DETAILS

Name :	ORIENT REFRACTORIES LIMITED
Registered Office :	1307, Chiranjiv Tower, 43, Nehru Place, New Delhi-110019
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.11.2010
Com. Reg. No.:	55-210819
Capital Investment / Paid-up Capital :	Rs.120.139 Millions
CIN No.: [Company Identification No.]	L28113DL2010PLC210819
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Refractory and Monolithic Products.
No. of Employees :	450 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 3000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track record. Financial position of the company appears to be good. Trade relations are reported as decent. Business is active. Payment terms are regular and as per commitments. The company can be considered good 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	CARE
Rating	A1+ [Short Term Bank Facilities]
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	19.03.2012

Rating Agency Name	CARE
Rating	A+ [Long Term Bank Facilities]
Rating Explanation	Adequate degree of safety and low credit risk.
Date	19.03.2012

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.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Manoj Gupta
Designation :	General Manager in Commercial Department
Contact No.:	91-1493-222266
Date :	02.02.2013

LOCATIONS

Registered Office :	1307, Chiranjiv Tower, 43, Nehru Place, New Delhi-110019, India
Tel. No.:	91-11-46425400
Fax No.:	91-11-26443859
E-Mail :	satishgupta@orlindia.com mkgupta@orlindia.com bhiwadi@orlindia.com info@orlindia.com
Website :	http://www.orientrefractories.com
Factory :	SP 148, RIICO Industrial Area, Bhiwadi, District Alwar-301019, Rajasthan, India
Tel. No.:	91-1493-222266

DIRECTORS

AS ON 31.03.2012

Name :	Mr. R K Rajgarhia
Designation :	Chairman
Name :	Mr. S G Rajgarhia
Designation :	Managing Director
Name :	Mr. K K Thirani
Designation :	Director
Name :	Mr. P P Khanna
Designation :	Director
Name :	Mr. R S Bajoria
Designation :	Director
Name :	Mr. A K Jain
Designation :	Director
Name :	Mr. S C Sarin
Designation :	Executive Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	57600546	47.94
Bodies Corporate	564980	0.47
Any Others (Specify)	231000	0.19
Trusts	231000	0.19
Sub Total	58396526	48.61
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	58396526	48.61
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	40500	0.03
Sub Total	40500	0.03
(2) Non-Institutions
Bodies Corporate	13342564	11.11
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	12778638	10.64
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	33097759	27.55
Any Others (Specify)	2483213	2.07
Non Resident Indians	378040	0.31
Clearing Members	47415	0.04
Hindu Undivided Families	2056758	1.71
Trusts	1000	0.00
Sub Total	61702174	51.36
Total Public shareholding (B)	61742674	51.39
Total (A)+(B)	120139200	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)	120139200	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Refractory and Monolithic Products.
Exports :
Products :	Refractory and Monolithic Products
Countries :	· Germany · Turkey · Egypt · Middle East · Malaysia · Gulf Country · Indonesia · Italy · Pakistan · Kingdom of Saudi Arabia · Sultanate of Oman · Greece · Spain · Nigeria · Azerbaijan · Bulgaria · Thailand · Iran · Italy
Imports :
Products :	Raw Materials
Countries :	· China · Korea
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

450 [Approximately]

Bankers :

· HDFC Bank

· State Bank of India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Cash credit loan from a bank* [*The cash credit loan is taken from bank are secured by first pari passu charge on the current assets of the Company and second pari passu charge on movable fixed assets of the Company both present and future. Mr. S. G. Rajgarhia has also given personal guarantee for this facility to the bank. These are payable on demand and carries interest rate of bank base rate plus 305 basis points (currently 13.05% p.a.).]	127.367	0.000
TOTAL	127.367	0.000

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Other Related Parties :	Orient Abrasives Limited (Upto November 15, 2011)

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
120500000	Equity Shares	Re.1/- each	Rs.120.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
120139200	Equity Shares	Re.1/- each	Rs.120.139 Millions

NOTE:

a. Reconciliation of the Equity shares outstanding at the beginning and at the end of reporting period At the beginning of the year/period

PARTICULAR	AS ON 31.03.2012 Rs. in Millions
500,000 (Previous period: nil) Equity Shares of Re. 1.00 each	0.500
Issued during the year - Equity Shares #119,639,200 (previous period: 500,000) equity shares of Re. 1.00 each	119.639
Outstanding at the year end 120,139,200 (previous period: 500,000) equity shares of Re. 1.00 each #Represent shares issued for consideration other than cash.	120.139

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 1.00 per share. The holder of each fully paid equity share is entitled to one vote. The company declares and pays dividends in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting. During the year ended March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders is Rs. 1.00 (Previous period: Rs. Nil)

c. Shares held by holding company

Out of equity shares issued by the Company shares held by its holding company are as below:

PARTICULAR	AS ON 31.03.2012 Rs. in Millions
Orient Abrasives Limited (Holding company till Nov 15, 2011) 0.499 Million (previous period: 0.499 Million) equity shares of Re. 1.00 each fully paid	0.499

d. Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

Equity shares allotted as fully paid-up pursuant to demerger scheme for consideration other than cash;

e. Details of shareholders holding more than 5% shares in the company

PARTICULAR	AS ON 31.03.2012
	NO. LACS	% AGE HOLDING IN THE CLASS
S G Rajgarhia	177.86	14.80
Anisha Mittal	132.32	11.01
S G Rajgarhia (HUF)	80.16	6.67
Bhavna Rajgarhia	82.24	6.85
Usha Rajgarhia	65.82	5.48

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		120.139	0.500
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		630.360	0.000
4] (Accumulated Losses)		0.000	(0.932)
NETWORTH		750.499	(0.432)
LOAN FUNDS
1] Secured Loans		127.367	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		127.367	0.000
DEFERRED TAX LIABILITIES		15.941	0.000
TOTAL		893.807	(0.432)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		270.991	0.000
Capital work-in-progress		2.256	0.000
INVESTMENT		0.057	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	456.326	0.000
	Sundry Debtors	588.428	0.000
	Cash & Bank Balances	13.228	0.499
	Other Current Assets	65.014	0.000
	Loans & Advances	33.165	0.000
Total Current Assets		1156.161	0.499
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	342.560	0.931
	Other Current Liabilities	19.919	0.000
	Provisions	173.179	0.000
Total Current Liabilities		535.658	0.931
Net Current Assets		620.503	(0.432)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		893.807	(0.432)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	3004.161	0.000
		Other Income	43.076	0.000
		TOTAL (A)	3047.237	0.000
Less	EXPENSES
		Cost of raw material and components consumed	1291.994	0.000
		Purchase of traded goods	454.821	0.000
		Employee benefits expenses	231.782	0.000
		Other expenses	575.459	0.932
		Increase in inventories	(33.621)	0.000
		TOTAL (B)	2520.435	0.932
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		526.802	(0.932)
Less	FINANCIAL EXPENSES (D)		38.776	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		488.026	(0.932)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		29.659	0.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		458.367	(0.932)
Less	TAX (H)		150.274	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		308.093	(0.932)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	461.216	0.000
		Royalty Income	0.944	0.000
	TOTAL EARNINGS		462.160	0.000
	IMPORTS
		Raw Materials	259.640	0.000
		Traded Goods	5.791	0.000
		Capital Goods	59.861	0.000
		Stores and Spare Parts	4.627	0.000
	TOTAL IMPORTS		329.919	0.000
	Earnings / (Loss) Per Share (Rs.)		2.56	(1.86)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
PAT / Total Income	(%)	10.11	0.00
Net Profit Margin (PBT/Sales)	(%)	15.25	0.00
Return on Total Assets (PBT/Total Assets}	(%)	32.12	(186.77)
Return on Investment (ROI) (PBT/Networth)		0.61	2.15
Debt Equity Ratio (Total Debt/Networth)		0.17	0.00
Current Ratio (Current Asset/Current Liability)		2.15	0.54

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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

OPERATIONS REVIEW AND FUTURE OUTLOOK:

The Company was incorporated on November 26, 2010. The Hon’ble High Court of Delhi, vide its order dated September 19, 2011 sanctioned a Scheme of Demerger (“the Scheme”) between Orient Abrasives Limited (“OAL”) and Orient Refractories Limited (“the Company”), pursuant to which the refractory division of OAL was demerged and transferred to the Company with effect from commencement of business on April 1, 2011 i.e. Appointed Date under the Scheme. The Scheme became effective from October 31, 2011.

The financial results for the year ended March 31, 2012 are for the business transferred to the Company, after giving effect to the Scheme of Demerger and accordingly, are not strictly comparable with the previous corresponding period and hence not given here.

During the year the Company has achieved a gross turnover of Rs. 3004.161 Millions including export income of Rs.461.216 Millions. The gross profit and net profit for the year are Rs. 458.367 Millions and Rs. 308.093 Millions respectively.

The directors are hopeful that the turnover and profitability of the Company will increase in the current financial year.

CAPITAL STRUCTURE:

PAID-UP CAPITAL:

In accordance with the Scheme of Demerger 119,639,200 equity shares of Rs. 1.00 each fully paid up were issued and allotted to the shareholders of OAL on November 15, 2011, as per the entitlement ration of 1:1, i.e. each shareholder of OAL whose name appeared in the register of members of the OAL on the record date i.e. November 14, 2011, received one fully paid equity share of face value of Rs. 1.00 each in the Company.

The paid-up capital as at March 31, 2012 stands at Rs. 120.139 Millions comprising of 120,139,200 equity shares of Re. 1.00 each fully paid up.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

GENERAL REVIEW:

Subject is among the elite Indian producers of refractories and monolithics for the steel industry. Its consistent quality and developmental initiatives has facilitated a large customer base, within the country and across the world, making it the preferred choice for people looking for quality and service.

BUSINESS DIVISIONS/SEGMENTS:

The product range includes:

(a) Isostatically pressed continuous casting Refractories

(b) Slide gate Refractories

(c) Metering, Flying and Fixed Tundish Nozzles

(d) Bottom Purging Refractories and Top Purging Lances for Steel Ladles

(e) Precast Shapes and Blocks

(f) Slag Arresting Darts for Converters

(g) Basic Spray Mass for Tundish Working Lining

(h) Blast Furnace Trough Castable for Main Trough, Metal and Rocking Runners

(i) Conventional, Low Cement and Ultra Low Cement Castables, etc.

All these products are made to suit the casting conditions and grade of steel being cast and are a result of an intensive research and development effort by the company. To reinforce quality and development of products, the Company has an in-house research and development facility that is recognized by the Government of India.

The Company also has a well trained group of technical personnel at plant and customer sites to address all customers’ technical and commercial needs as it has a large base of customers to whom it provides total refractory management services.

The Company exports a fair share of its output to various overseas customers. The major export customers are based in Egypt, Turkey, Indonesia, Italy, Pakistan, Kingdom of Saudi Arabia, Sultanate of Oman, Greece, Spain,

Nigeria, Azerbaijan, Malaysia, Bulgaria, Thailand, Iran, Germany, Italy etc.

BUSINESS ENVIRONMENT:

Industrial growth has been weak and volatile and has trended downwards for several quarters and despite RBI’s recent decision to reduce reference rates by 0.5%, there are no signs that growth will recover in the near term. Meanwhile, high fiscal and current account deficits, high inflation and depreciating Rupee are major concerns for the economy. The outlook for 2012-13 is uncertain.

INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES, THREATS, RISKS AND CONCERNS AND FUTURE OUTLOOK:

The Directors continue to be optimistic about future of the Steel Industry both in India and abroad and envisage that going forward, there will be a great thrust on “Clean Metal” and thus the demand for specialized refractories produced by the Company will continue to grow barring unforeseen circumstances. The Directors however continue to be concerned about steep increases in cost including manufacturing, selling and employees. Other areas of concern are scarcity of raw-materials and steep fluctuation in foreign exchange. As usual, all these factors would continue to be monitored closely and necessary measures will be taken as and when required. Entire revenue of the Company is earned from steel manufacturers and in the event demand for steel and other derivative products reduces performance of the Company can be adversely affected.

FIXED ASSETS:

· Land Leasehold

· Leasehold Improvement

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Software

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2012

Rs. in Million

Sr. No.	Particular	Quarter Ended		Half Year Ended
		30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)
1.	Net Sales/Income from Operations	909.808	910.844	1820.652
	Other Operating Income	1.864	0.952	2.816
	Total Income From Operations	911.672	911.796	1823.468
2.	Expenditure
	Cost of materials consumed	399.416	379.483	778.899
	Purchase of stock in trade	126.110	156.837	282.947
	Changes in inventories of finished goods, work in progress and stock in trade	(15.053)	(24.460)	(39.513)
	Employee benefits expenses	65.058	67.689	132.747
	Depreciation and amortization expenses	9.231	7.669	16.900
	Other expenses	166.170	174.140	340.310
	Total Expenses	750.932	761.358	1512.290
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	160.740	150.438	311.178
4.	Other Income	0.272	1.675	1.947
5.	Profit Before Interest and Exceptional Items (3+4)	161.012	152.113	313.125
6.	Interest	4.417	4.191	86.08
7.	Profit After Interest but before Exceptional Items (5-6)	156.595	147.922	304.517
8.	Exceptional Items	--	12.586	12.586
9.	Profit from Ordinary Activities before Tax (7+8)	156.595	135.336	291.931
10.	Tax Expense	51.358	43.649	95.007
11.	Net Profit from Ordinary Activities after Tax (9-10)	105.237	91.687	196.924
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	105.237	91.687	196.924
14.	Paid-up Equity Share Capital (Face Value of Re.1/- Each)	120.139	120.139	120.139
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	0.88	0.76	1.64
	b) Basic and diluted EPS after extraordinary items	0.88	0.76	1.64
17.	Public Shareholding
	-Number of Shares	61742674	61742674	61742674
	- Percentage of Shareholding	51.39	51.39	51.39
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	58396526	58396526	58396526
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	48.61	48.61	48.61

Particulars	3 Months ended on September 30, 2012
Pending at the beginning of the quarter	1
Received during the quarter	2
Disposed of during the quarter	3
Remaining unresolved at the end of the quarter	Nil

NOTES:

1. The Company has been listed on stock exchange on March 12, 2012, therefore information in relation to quarter ended September 30, 2011 and half year ended September 30, 2011 are not applicable and hence not disclosed.

2. The above financial results were approved and taken on record by the Board of Directors at their meeting held on November 10, 2012.

3. The Company is mainly in the business of manufacturing and selling of refractories and monolithics. Hence, there is no separate reportable segment as per Accounting Standard 17, issued by the Institute of Chartered Accountants of India.

4. During the previous quarter, the Company offered a Voluntary Retirement Scheme (VRS) and based on applications accepted an expense of Rs. 12.586 millions had been recorded in last quarter.

5. Statutory auditors have carried out limited review on above results for the quarter ended September 30, 2012.

6. Previous period/year figures have been regrouped/recasted, wherever necessary.

Rs. in Millions

PARTICULARS	30.09.2012 [Unaudited]
Equity and liabilities
Shareholders' fund
Share capital	120.139
Reserve & surplus	827.284
Sub-total - Shareholders' funds	947.423
Non - current liabilities
Deferred tax liability (net)	8.740
Long term provisions	8.817
Sub-total - Non-current liabilities	17.557
Current liabilities
Short term borrowings	105.390
Trade payables	439.848
Other current liabilities	54.863
Short term provisions	36.225
Sub-total - Current liabilities	636.326
Total - Equity & Liabilities	1601.306
Assets
Non-current assets
Fixed assets	279.392
Non-current investment	0.057
Long term loans & advances	7.136
Other non-current assets	10.466
Sub-total - Non-current Assets	297.051
Current assets
Inventories	586.302
Trade receivables	651.849
Cash & bank balances	17.511
Short term loans & advances	21.382
Other current assets	27.211
Sub-total - Current Assets	1304.255
Total – Assets	1601.306

WEBSITE DETAILS:

PROFILE:

Subject entered into a Scheme of Arrangement with Orient Abrasives Limited (OAL) and their respective shareholders, which became effective on April 1, 2011. In terms of the Scheme, the refractory business of OAL was demerged into our Company on a going concern basis.

The Company offers a wide range of Refractory and Monolithic products for the iron and steel industry and enjoy large domestic and international clientele. An in-house R and D facility supports the division’s product development initiatives. This makes ORL the preferred choice for quality products. 

Headquartered in New Delhi, India, its manufacturing facility is located in Bhiwadi, Rajasthan. They have the distinction of being ISO - 9001 quality certified.

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 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 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.53.29
UK Pound	1	Rs.83.97
Euro	1	Rs.71.87

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.