MIRA INFORM REPORT

Report Date :

07.02.2013

IDENTIFICATION DETAILS

Name :	TRL KROSAKI REFRACTORIES LIMITED (w.e.f. 03.06.2011)
Formerly Known As :	TATA REFRACTORIES LIMITED (w.e.f. 06.03.1986) BELPAHAR REFRACTORIES LIMITED
Registered Office :	Belpahar, Jharsuguda – 768 218, Orissa
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.09.1958
Com. Reg. No.:	15-000349
Capital Investment / Paid-up Capital :	Rs.209.000 millions
CIN No.: [Company Identification No.]	U26921OR1958PLC000349
TAN No.: [Tax Deduction & Collection Account No.]	BBNT00014A
PAN No.: [Permanent Account No.]	AAACT6494Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Selling of Refractories.
No. of Employees :	1292 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 11000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a good track record. There appears some dip in the profitability of the company. However, the company has leading position in the domestic refractory industry, strong brand image and a large and reputed client base. Financial position of the company is good. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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	Term Loan: AA
Rating Explanation	High credit quality, it carry low credit risk.
Date	26.03.2012

Rating Agency Name	ICRA
Rating	Short Term Debt: A1+
Rating Explanation	Highest credit quality, it carry lowest credit risk.
Date	26.03.2012

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

Name :	Mr. M. V. Rao
Designation :	Vice President
Contact No.:	91-9937286933
Date :	06.02.2013

LOCATIONS

Registered Office/ Factory/ Refractory Engineering and Management Services (REMS)/ Technical Services (Finance and Accounts/ Human Resources/ Materials Management Order Management) :	Belpahar, Jharsuguda – 768218, Orissa, India
Tel. No.:	91-6645-258623/ 258396/ 258377/ 250249/ 250264/ 250273/ 2358486/ 258417
Mobile No :	91-9937286933 (Mr. M.V. Rao)
Fax No.:	91-6645-250243/ 250254
E-Mail :	nilkanth@tataref.com arabinda@tataref.com arabinda@trlkrosaki.com pkjana@trlkrosaki.com ps.shrivastava@yahoo.com hmnerurkar@tatasteel.com rajesh.chintak@tatasteel.com akc@tataref.com csd@tataref.com dbehera@tataref.com
Website :	www.tataref.com www.trlkrosaki.com
Head Office/ Marketing Division :	Tata Center, 11^th Floor, 43 J.L. Nehru Road, Kolkata – 700071, West Bengal, India
Tel No :	91-33-64990527
Fax No :	91-33-22881063/ 1065
E-Mail :	ac@tataref.com
Domestic Marketing Office :	Located at: · Jamshedpur · Kolkata · Vizag · Belpahar · Mumbai · Bengaluru · Delhi
Operation Office :	Located at: · Jamshedpur · Salem · China · Gujarat · Jhansi · Hyderabad
Branch Office :	Harshdeep Plaza, Indore – 452 001, Madhya Pradesh, India

DIRECTORS

AS ON 15.09.2012

Name :	Mr. Vuppala Satyanarayana Murty
Designation :	Director
Address :	No. 10, Judges Court Road, Alipore, Flat No.31, 7^th Floor, Kolkata, West Bengal, India
Date of Birth/Age :	15.04.1951
Date of Appointment :	05.05.2008
DIN No :	00092348
Name :	Mr. Hemant Madhusudan Nerurkar
Designation :	Additional director
Address :	5-C Road, Northern Town, Bistupur, Jamshedpur – 831001, Jharkhand, India
Date of Birth/Age :	20.10.1948
Qualification :	B. Tech. in Metallurgy
Date of Appointment :	15.09.2012
DIN No :	00265887
Other Directorship :	· Tata Steel Limited · Tata Bluescope Steel Limited
Name :	Mr. Arup Kumar Chattopadhyay
Designation :	Managing Director
Address :	Owners Court 6, May Fair Road, Flat No.81, Kolkata – 70 0019, West Bengal, India
Date of Birth/Age :	17.12.1952
Date of Appointment :	28.04.2009
DIN No :	00201892
Name :	Mr. Yujiro Ueda
Designation :	Director
Address :	7-1 Shirahagi-machi, Kokurakita-ku, Kitakyushu-city, Fukuoka, Kitakyushu – 8030825, Japan
Date of Birth/Age :	14.10.1949
Qualification :	B.Eng. (Tokyo University) and Doctorate of Steelmaking (RWTH Aachen)
Date of Appointment :	31.05.2011
DIN No :	03514624
Name :	Mr. Hiroshi Odawara
Designation :	Director
Address :	12-10-1006, Tsutsui-machi, Yahantanishi-ku, Kitakyushu-City, Fukuoka-Perfecture, Kitakyushu, Japan
Date of Birth/Age :	18.08.1953
Date of Appointment :	31.05.2011
DIN No :	03514764
Name :	Mr. Kotaro Kuroda
Designation :	Director
Address :	1-5-12, Sakuradai, Nakama-shi, Fukuoka – 8090017, Japan
Date of Birth/Age :	21.07.1956
Date of Appointment :	31.05.2011
DIN No :	03140089
Name :	Mr. Kinji Matsushita
Designation :	Director
Address :	4-9-42-503, Kobai-cho, Yahatanishi-ku, Kitakyushu-City, Fukuoka Perfecture, Kitakyushu – 8060011, Japan
Date of Birth/Age :	24.01.1957
Date of Appointment :	31.05.2011
DIN No :	03515430
Name :	Mr. Kiyotaka Oshikawa
Designation :	Director
Address :	Mitsusadadai 1-1-1-714, Yahatanishi-ku, Kitakyushu-city, Fukuoka Perfecture, Kitakyushu – 8070805, Japan
Date of Birth/Age :	27.07.1960
Date of Appointment :	31.05.2011
DIN No :	03515516
Name :	Mr. Prem Shankar Shrivastava
Designation :	Additional Director
Address :	1302, Kailash Tower, Kaushambi, Ghaziabad – 201010, Uttar Pradesh, India
Date of Birth/Age :	18.02.1955
Date of Appointment :	26.10.2012
DIN No :	06397536
Name :	Mr. Rajesh Chintak
Designation :	Director
Address :	B-12, BJB Nagar, Bhubaneswar – 751009, Orissa, India
Date of Birth/Age :	14.10.1967
Qualification :	B. Tech
Date of Appointment :	15.09.2012
DIN No :	02384452
Other Directorship :	· T. S. Alloys Limited · Tata Sponge Iron Limited · Gopalpur Special Economic Zone Limited · Kalinga Aquatics Limited
Name :	Mr. Rakesh Kulshreshtha
Designation :	Director appointed in casual vacancy
Address :	C-01, Ispatika Apartments, Sector – 4, Plot no.29, Dwarka phase – 1, New Delhi – 110075, India
Date of Birth/Age :	08.10.1952
Date of Appointment :	12.12.2011
DIN No :	03196186

KEY EXECUTIVES

Name :	Mr. Arbinda Debta
Designation :	Secretary
Address :	P-45, TRL Township, Belpahar, Jharsuguda – 768 218, Orissa, India
Date of Birth/Age :	25.06.1976
Date of Appointment :	22.08.2011
PAN No.:	AIKPD0761H
Name :	Mr. P.B. Panda
Designation :	Executive Vice President and Chief Operating Officer
Name :	Mr. C.S. Das
Designation :	Executive Vice President and Chief Financial Officer
Name :	Dr. Tarapada Dash
Designation :	Vice President (HR and Administration)
Name :	Mr. Hirdesh Sehgal
Designation :	Vice President (Operations)
Name :	Mr. P.K. Patel
Designation :	Vice President (Project and Support Services)
Name :	Dr. Sukumar Adak
Designation :	Vice President (Technology)
Name :	Mr. Santanu Mukhopadhyay
Designation :	Vice President (Business Development)
Name :	Mr. J Pandey
Designation :	Vice President (Strategy Management and Business Excellence)
Name :	Mr. P.K. Naik
Designation :	Vice President (Strategic Raw Material Sourcing)
Name :	Mr. M.V. Rao
Designation :	Vice President (Commercial)
Name :	Mr. M.C. Pradhan
Designation :	Vice President (Gujarat and Jhansi Operations)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2012

Shareholding details file attached.

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Government Companies	10.54
Public Financial Institutions	4.61
Foreign holdings	51.00
Bodies Corporate	27.83
Other Top 50 Shareholders	5.95
Others	0.07
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Refractories.

Products :

Item Code No. (ITC Code)	69021004
Product Description	Bricks and Shapes, Magnesia Carbon
Item Code No. (ITC Code)	69039004
Product Description	Monolithics / Castables (Fireclay, Basic, Silica, High Alumina, Insulating)
Item Code No. (ITC Code)	69022002
Product Description	Bricks and Shapes, High Alumina

GENERAL INFORMATION

No. of Employees :

1292 (Approximately)

Bankers :

· Central Bank of India

Main Road, Bistupur, Jamshedpur – 831001, Bihar, India

· Central Bank of India

Corporate Finance Branch, 33, N.S. Road, Kolkata – 700001, West Bengal, India

· State Bank of India

· Mizuho Corporate Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans
From Bank Central Bank of India (Secured by a pari passu mortgage of immovable properties and hypothecation of movable assets, except book debts, both present and future, subject to prior charge on stocks and stores in favour of Central Bank of India and State Bank of India.)	--	--
State Bank of India (Secured by a pari-passu first charge with other lenders on fixed assets, both present and future.)	85.000	119.000
Mizuho Corporate Bank (Secured by Corporate Guarantee of Krosaki Harima Corporation, Japan)	220.000	--
Repayable on Demand From Bank	709.263	747.580
Total	1014.263	866.580

Banking Relations :	--
Auditors :
Name :	N.M. Raiji and Company (Mr. Vinay D. Balse – Partner) Chartered Accountants
Address :	Universal Insurance Building, 6^th Floor, Sir P.M. Road, Mumbai – 400 001, Maharashtra, India
PAN No.:	AAAFN4217G
Holding Company :	· Krosaki Harima Corporation, Japan (Holding Company) (June 3, 2011 onwards) · Tata Steel Limited.(Holding Company) (Upto June 2, 2011)* CIN No:L27100MH1907PLC000260
Subsidiaries :	· TRL Asia Private Limited, Singapore · TRL China Limited, China
Fellow Subsidiaries :	· The Indian Steel and Wire Products Limited · Nat Steel Asia Pte Limited · Tata Metaliks Limited · Corus U. K. Limited · Tayo Rolls Limited
	·
Associates :	· Almora Magnesite Limited · Tata Sponge AND Iron (Upto June 2, 2011)* · TRF Limited (Upto June 2, 2011)* · Jamipol Limited (Upto June 2, 2011)*

CAPITAL STRUCTURE

(AS ON 15.09.2012)

Authorised Capital:

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
20900000	Equity Shares	Rs.10/- each	Rs.209.000 millions

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		209.000	209.000	209.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2475.832	2315.486	2272.407
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2684.832	2524.486	2481.407
LOAN FUNDS
1] Secured Loans		1014.263	866.580	664.823
2] Unsecured Loans		494.145	144.615	438.954
TOTAL BORROWING		1508.408	1011.195	1103.777
DEFERRED TAX LIABILITIES		142.826	153.439	166.304
Provision for Employee Separation Compensation		0.000	0.000	43.227
TOTAL		4336.066	3689.120	3794.715
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1735.709	1651.172	1805.878
Capital work-in-progress		149.341	117.756	0.000
INVESTMENT		336.648	338.935	338.934
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1605.304	1378.440	1219.827
	Sundry Debtors	1908.028	1685.056	1258.818
	Cash & Bank Balances	32.900	79.435	130.779
	Other Current Assets	0.011	0.016	0.036
	Loans & Advances	489.373	446.784	464.305
Total Current Assets		4035.616	3589.731	3073.765
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1174.903	944.157	878.921
	Other Current Liabilities	349.576	348.977	279.033
	Provisions	396.769	715.340	265.908
Total Current Liabilities		1921.248	2008.474	1423.862
Net Current Assets		2114.368	1581.257	1649.903
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4336.066	3689.120	3794.715

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	9007.570	8682.374	8195.943
		Other Income	66.921	47.143	50.332
		TOTAL (A)	9074.491	8729.517	8246.275
Less	EXPENSES
		Raw Materials Consumed	3272.186	3187.285
		Purchases of Finished, Semi-finished and Other products	2044.148	2022.915
		Changes in stock of finished goods, work-in-progress and stock-in-trade	(24.299)	(66.808)	7330.700
		Employee Benefit Expense	517.129	499.072
		Other Expenses	2517.607	2119.756
		Expenditure (other than interest) transferred to capital	(43.279)	(32.850)
		TOTAL (B)	8283.492	7729.370	7330.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		790.999	1000.147	915.575
Less	FINANCIAL EXPENSES (D)		206.819	122.244	108.991
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		584.180	877.903	806.584
Less/ Add	DEPRECIATION/ AMORTISATION (F)		236.619	214.554	209.770
	PROFIT BEFORE TAX (E-F) (G)		347.561	663.349	596.814
Less	TAX (H)		102.198	236.480	212.162
	PROFIT AFTER TAX (G-H) (I)		245.363	426.869	384.652
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	246.748	196.138
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	426.789	200.000
		Dividend	NA		114.950
		Tax on Dividend	NA		19.092
	BALANCE CARRIED TO THE B/S		NA	246.828	246.748
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1405.059	1227.698	1289.332
		Commission Earnings	50.822	31.023	41.239
	TOTAL EARNINGS		1455.881	1258.721	1330.571
	IMPORTS
		Raw Materials	1361.026	1270.550	930.616
		Finished Products	662.490	615.357	857.885
		Stores & Spares	15.279	3.966	11.841
		Capital Goods	31.338	18.847	11.514
	TOTAL IMPORTS		2070.133	1908.720	1811.856
	Earnings Per Share (Rs.)		11.74	20.42	18.40

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.70	4.89	4.66
Net Profit Margin (PBT/Sales)	(%)	3.86	7.64	7.28
Return on Total Assets (PBT/Total Assets}	(%)	6.02	12.69	12.23
Return on Investment (ROI) (PBT/Networth)		0.13	0.26	0.24
Debt Equity Ratio (Total Debt/Networth)		0.56	0.40	0.44
Current Ratio (Current Asset/Current Liability)		2.10	179	2.15

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	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	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

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Short Term Loans
From Banks	470.000	--
Fixed Deposits	24.145	44.615
Interest accrued and due thereon	--	--
Other Loans Commercial Papers	--	100.000
Total	494.145	144.615

PERFORMANCE

The performance of the Company was deeply impacted by the ill effect of domestic as well as global economic downturn that severely subdued the demand for industrial goods and could nevertheless achieve a growth of over 4% in sales revenue at Rs.9640.000 Millions during the year against Rs.9270.000 Millions of the previous year. The consolidated revenue which includes the revenues of TRL China Limited were Rs.1088 Millions compared to Rs.10100.000 Millions of the previous year; an increase of 8%. The drop in demand of its products also led to lower capacity utilization.

The gross production during the year was 2,22,309 t. against 2,34,831 t. of previous year; a decline of around 4%.

The overall sales volume was 2,99,013 t. against 3,18,087 t. of the previous year; a decline of around 6%. Although production and sales volume were lower than that of the previous year the total revenue was higher due to better product mix and increase in selling prices.

The under absorption of overhead expenses, higher input prices particularly abnormal increase in fuel and power cost and increase in financing cost prevailing over a large part of the year saw the profit before taxes dropping to 4% as compared to 7% of the previous year. The profit before taxes for the year was Rs.350.000 Millions against Rs.660.000 Millions of the previous year; a decrease of 47%. The profit after tax was Rs.250.000 Millions against Rs.430.000 Millions of the previous year; a decrease of 42%.

INTERNATIONAL BUSINESS

The export turnover of the Company for the year was Rs.1470.000 Millions against Rs.1300.000 Millions of the previous year. The consolidated international business was Rs.1900.000 Millions against Rs.1670.000 Millions of the previous year. Close to one fifth of the Company's consolidated turnover comes from sales outside India. The Company is enlarging its global footprint for sound business reasons. A wide international customer base enables the Company de-risking of operations. Further international exposure enables the Company to benchmark its operations against global standard. The Company was successful in securing coke oven battery No.1 rebuilding order of Esfahan Steel Company, Iran, competing with several international players in the field. Although, the Company is facing difficulties for execution of the Project due to sanction of U.S.A. and European countries the Company has taken actions to mitigate the problem and execute the Project, which will enable the Company to earn the reputation of a global refractories service provider.

During the year, the Company has received the Capexil's Top Export Award for the year 2010-11.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC ENVIRONMENT

The year 2011-12 was a challenging year for the Indian as well as global economy. With the Gross Domestic Product (GDP) growth slowing to 6.9% in FY 2012 from 8.4% in the previous two fiscals, India has witnessed a slowdown due to weak industrial activity coupled with a contraction in investments. Factor such as persistent and high inflation, monetary tightening, weakening of the Rupee, negative global developments and domestic political uncertainty have contributed to it. Global economy recovery got serious setback due to intensification of debt crises in Euro Zone, political turmoil in Middle East and USA and European sanction on Iran. As a result of high inflation and abnormal increase in interest rates due to tightening of monetary policy by RBI, industrial growth slowed drastically to mere 3.9% as compared to 7.6% of last year. Restriction on iron ore production owing to scam and environmental issues, weak coal output and decline in natural gas production during the year also seriously affected core sector particularly Steel which consumes around 75% refractories.

INDUSTRY OVERVIEW

Refractories are composite materials used in large volume in extreme, usually corrosive, environments as furnace lining for high temperature materials processing and other applications in which thermo mechanical and thermo chemical properties are critical. Refractories are therefore facilitating or enabling materials and are essential to successful operations of any industry in which high temperature are used. The steel industry is by far the greatest user of refractories, which accounts for about 70% of the world refractories production. Other significant users include cement and lime, aluminium, copper, chemical, glass and ceramic industries. Consequently the growth of refractories industry is closely linked with growth in iron and steel industry.

FUTURE OUTLOOK

Despite the lower growth figure of 6.9%, India remains one of the fastest growing economies in the World as all major Countries (including the emerging economies) are witnessing a significant slowdown. While a slowing down of the Indian economy can be largely attributed to global factors, domestic factors also played an important role.

The survey predicts the Indian economy to grow by 7.6% and 8.6% in the next two years. It also predicts that the weakness in the economic activity might have bottomed out. Keeping in view the economic trends of various parameters, inflation is expected to decline in the short run. As a result, the RBI is expected to opt for an expansionary monetary policy which could provide necessary fillip to the economy.

Steel has a good outlook for next two years with a forecast of 80 Million Tonnes for 2012-13 and 100 Million Tonnes in 2013-14. Since growth of refractories industries is linked to steel industry, your Company can be benefited from this outlook.

FORM 8

Corporate identity number of the company	U26921OR1958PLC000349
Name of the company	TRL Krosaki Refractories Limited
Address of the registered office or of the principal place of business in India of the company	Belpahar, Jharsuguda – 768218, Orissa, India E-mail : arabinda@trlkrosaki.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90078462
Type of charge	· Immovable property · Any Interest in Immovable Property · Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Central Bank of India, Corporate Finance Branch, 33, N. S. Road, Kolkata-700001, West Bengal, India E-Mail : agmcfb3842@centralbank.co.in
Nature of instrument creating charge	1. Sanction Letter 2. Hypothecation of Book Debts to secure Cash Credit and WCDL 3. Letter of Hypothecation to secure demand Cash Credit against goods 4. Agreement for Letter of Credit and BG 5. Packing Credit Agreement 6. Demand Promissory Note of Rs.620.000 Millions All agreement executed on 14^th November, 2011.
Date of instrument Creating the charge	14.11.2011
Amount secured by the charge	Rs.1020.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Margin 25% on CC 10% on PC/EBP Extent and operation of the charge First charge by way of hypothecation over stocks and receivables ranking pari passu with SBI. 2nd Charge by way of hypothecation/mortgage of entire block assets both existing and future ranking pari passu with CBI and SBI. By this modification the earlier overall limit of Rs.1215.000 Millions is modified to Rs.1020.000 Millions.
Short particulars of the property charged (Including location of the property)	The properties hypothecated/mortgaged are located at TRL Krosaki Refractories Limited, Belpahar, District - Jharsuguda, Odisha, India, Pin - 768218 and with all its branches.
Date of instrument modifying the charge	09.06.2011
Particulars of the present modification	By this modification the earlier limit of Rs.1215.000 Millions is modified to Rs.1020.000 Millions as per followings. (A) Fund Based Working Capital limit Rs.620.000 Millions (i) Cash Credit Rs. 370.000 Millions (ii) Export Packing Credit Rs.250.000 Millions (B)Non-fund Based Working Capital limit Rs.400.000 Millions (i) Letter of Credit Rs.200.000 Millions (ii) Bank Guarantee Rs.200.000 Millions

FIXED ASSETS:

· Land

· Buildings and Roads

· Plant and Machinery

· Railway Siding

· Furniture and Fixture

· Office Equipments

· Vehicles

WEBSITE DETAILS:

ORGANIZATION PROFILE

TRL Krosaki Refractories Limited (Formerly Tata Refractories Limited) was established in the year 1958 in the name of Belpahar Refractories Limited. Subsequently the Company’s name was changed to Tata Refractories Limited.  After acquisition of 51% shares of Tata Refractories Limited by Krosaki Harima Corporation, (KHC), Japan from Tata Steel, Tata Refractories Limited has changed its name to “TRL Krosaki Refractories Limited” with effect from June 03, 2011. Tata Steel will continue to hold 26.46% equity stake in TRL Krosaki. Besides Krosaki Harima Corporation and Tata Steel, TRL Krosaki has also equity participation from Steel Authority of India Limited, the largest public sector steel producer of India and Life Insurance Corporation of India, the largest public sector Insurance Company. KHC and  TRL Krosaki have jointly emerged as the 4^th largest refractories manufacturers in the world.

The development of the Refractories Industries in India is inextricably linked with the growth of company. Refractories are used in all high temperature processes to protect the reactors and personnel from the influence of heat and hot materials. Thus, Refractories are critical consumables in metallurgical and other industries where pyro-processes are involved.

Company is presently the largest producer of refractories in India, with a product range comprising high alumina refractories, basic refractories, dolomite refractories, silica refractories, Flow Control Products and monolithics for standard and specialized applications for the Steel, Cement, Glass, Non-ferrous and Petro-chemical industries both in India and abroad.  Company is the only Refractories Company in India which manufactures and sells a wide range of sophisticated refractories products.  Company’s market share in India is around 22%.

Company exports its products to various countries. Around 14% of the annual turnover comes from Exports. The Company has been accorded the status of an Export House by the Government of India. 

The Company has received the Integrated Management System (IMS) Certificate. This IMS certification includes three major international standards -ISO 9001:2008, ISO 14001: 2004 and OHSAS 18001: 2007.  

Company is the first Refractories Company in India to have received the IMS Certificate. 

Besides supply of refractories, Company also offers to customers Refractories Engineering and Management Services such as design, supply, erection and commissioning   and maintenance jobs of equipment where refractories are used.

PRESS RELEASE

AFTER A GOOD WAGE AGREEMENT, TRL KROSAKI PAYS A BONUS OF MINIMUM RS 17,000 TO ITS WORKMEN.

TRL Krosaki Refractories Limited (TRL) has declared an amount of minimum Rs 17,000/- as bonus and cash award to its workmen for the year 2011-2012. TRL Krosaki has recently signed a very good wage agreement with the Union which has accrued windfall gains to the workmen.

As per the Bonus Agreement, each employee in workmen grade is eligible for Bonus and cash award for the accounting year 2011-12 at the rate of 20% of their salary subject to a minimum of Rs. 17000/-. This is the highest amount ever paid by any Refractories company in India and one of the highest for any industry in Odisha. Nearly 1000 workers are benefited from this payment which was made through their respective bank account on October 12, 2012. It may be noted that, the management has agreed for the bonus, in spite of present financial stringency of the company.

The company has been paying bonus uninterruptedly for last so many years, despite of its low profitability.

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.53.09
UK Pound	1	Rs.83.12
Euro	1	Rs.72.02

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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		65

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.