MIRA INFORM REPORT

Report Date :

06.11.2013

IDENTIFICATION DETAILS

Name :	STERLING ABRASIVE LIMITED
Registered Office :	Plot No. 45/ 46, G.I.D.C. Industrial Estate, Odhav Road, Ahmedabad – 382415, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.07.1979
Com. Reg. No.:	04-003467
Capital Investment / Paid-up Capital :	Rs. 9.000 Millions
CIN No.: [Company Identification No.]	U29259GJ1979PLC003467
TAN No.: [Tax Deduction & Collection Account No.]	AHMS00471C
PAN No.: [Permanent Account No.]	AACCS1266P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Grinding Wheels, Full range of Vitrified and Resin Bonded Grinding Wheels.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1170000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Financial position of the company appears to be good. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : “A”
Rating Explanation	Adequate credit quality and average credit risk.
Date	July 30, 2013

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 :	Plot No. 45/ 46, G.I.D.C. Industrial Estate, Odhav Road, Ahmedabad – 382415, Gujarat, India
Tel. No.:	91-79-22870905/ 22870907/ 30911595/ 30911655/ 31042346 (Sales)
Fax No.:	91-79-22974102
E-Mail :	accounts@sterlingabrasives.com sales@sterlingabrasives.com
Website :	http://www.sterlingabrasives.com
Location :	Owned
Branch Office :	Located at: · Bangalore · Mumbai · Delhi · Pune · Rajasthan · Kolkata · Haryana · Orissa · Nagpur · Andhra Pradesh · Punjab · Gujarat · Nashik · Uttar Pradesh · Madhya Pradesh

DIRECTORS

As on 25.05.2013

Name :

Mr. Srinivasan Rangarajan

Designation :

Director

Address :

"Dhanya", 126, Nandidurg Road, Bangalore - 560046, Karnataka, India

Date of Birth/Age :

10.09.1941

Date of Appointment :

22.04.2009

DIN No.:

00043658

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29221KA1994PTC015104	NTTF INDUSTRIES PRIVATE LIMITED	Director	06/01/1994	06/01/1994	-	Active	NO
2	U72400KA1994PTC016526	RAS TRANSFORMATION TECHNOLOGIES PRIVATE LIMITED	Director	19/11/1994	19/11/1994	-	Strike off	NO
3	L35999TN1962PLC004943	SUNDRAM FASTENERS LIMITED	Director	06/03/1995	06/03/1995	-	Active	NO
4	L29150KA1976PLC003017	YUKEN INDIA LIMITED	Director	29/06/1995	29/06/1995	-	Active	NO
5	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LIMITED	Director	24/06/1998	24/06/1998	-	Active	NO
6	U85110KA1999NPL025461	NETTUR TECHNICAL TRAINING FOUNDATION	Director	13/07/1999	13/07/1999	-	Active	NO
7	U27109KA1999PTC025888	TAEGUTEC INDIA PRIVATE LIMITED	Director	01/03/2000	01/03/2000	-	Active	NO
8	L85110TZ1955PLC015049	TTK PRESTIGE LIMITED	Director	09/10/2000	09/10/2000	-	Active	NO
9	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Director	09/02/2002	09/02/2002	-	Active	NO
10	U66030TN2001PLC047977	CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LIMITED	Director	22/03/2002	22/03/2002	01/11/2012	Active	NO
11	L35921TN1949PLC002905	TUBE INVESTMENTS OF INDIA LIMITED	Director	09/06/2004	09/06/2004	06/08/2012	Active	NO
12	L29112PN1978PLC088972	KIRLOSKAR INDUSTRIES LIMITED	Director	20/01/2005	20/01/2005	30/03/2010	Active	NO
13	U02710KA2004PTC034823	DAKSHIN FOUNDRY PRIVATE LIMITED	Director	29/03/2005	29/03/2005	04/07/2012	Active	NO
14	L24231TN1958PLC003647	TTK HEALTHCARE LIMITED	Director	29/12/2005	29/12/2005	-	Active	NO
15	L72200KA1999PLC025564	MINDTREE LIMITED	Director	24/10/2006	24/10/2006	19/07/2013	Active	NO
16	U74140KA2007PTC042217	EDUTECH NTTF INDIA PRIVATE LIMITED	Director	28/04/2007	28/04/2007	-	Active	NO
17	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	04/06/2009	22/04/2009	-	Active	NO
18	U74300KA2009PTC050726	BANGALORE INTERNATIONAL EXHIBITION SERVICES PRIVATE LIMITED	Director	24/08/2009	24/08/2009	-	Active	NO
19	L29120PN2009PLC133351	KIRLOSKAR OIL ENGINES LIMITED	Director	09/07/2010	30/03/2010	-	Active	NO
20	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	29/08/2012	29/08/2012	-	Active	NO
21	U74900KA2012NPL067059	IMTMA MACHINE TOOL INDUSTRY PARK	Director	06/12/2012	06/12/2012	-	Active	NO

Name :

Mr. Nirav Nitin Parikh

Designation :

Managing director

Address :

"Viral" 1278, Near Law College, Ellisbridge, Ahmadabad - 380006, Gujarat, India

Date of Birth/Age :

25.02.1966

Date of Appointment :

01.07.2013

PAN No.:

ABIPP8929L

DIN No.:

00042146

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Managing director	01/07/2013	01/07/2005	Active	NO

Name :

Mr. Nitin Shantilal Parikh

Designation :

Whole-time director

Address :

"Viral" 1278, Near Law College, Ellisbridge, Ahmadabad - 380006, Gujarat, India

Date of Birth/Age :

30.03.1940

Date of Appointment :

01.07.2013

PAN No.:

ABIPP8930B

DIN No.:

00041876

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Whole-time director	01/07/2013	27/07/1979	Active	NO

Name :

Mr. Sudhir Indravadan Nanavati

Designation :

Director

Address :

“Archit", S.M. Road, Ambawadi, Ahmedabad - 380015, Gujarat, India

Date of Birth/Age :

29.09.1947

Date of Appointment :

27.07.1979

DIN No.:

00050236

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	27/07/1979	27/07/1979	-	Active	NO
2	L22121GJ1943PLC000183	THE SANDESH LIMITED	Director	31/01/2001	31/01/2001	-	Active	NO
3	U92410GJ1989GAP012192	KARNAVATI CLUB LIMITED	Director	29/12/2011	08/03/2011	24/08/2012	Active	NO

Name :

Mr. Srinivasan Krishnaswamy

Designation :

Director

Address :

34/4, Arunachalam Road, Kotturpuram, Chennai - 600085, Tamilnadu, India

Date of Birth/Age :

22.11.1957

Date of Appointment :

11.12.2001

DIN No.:

00088424

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	11/12/2001	11/12/2001	-	Active	NO
2	L85110KA1980PLC003913	WENDT INDIA LIMITED	Director	30/01/2002	30/01/2002	-	Active	NO
3	L29224TN1954PLC000318	CARBORUNDUM UNIVERSAL LIMITED	Managing director	01/02/2010	01/02/2005	-	Active	NO
4	U29230DL1999PTC100838	BOART LONGYEAR INDIA PRIVATE LIMITED	Director	25/03/2005	25/03/2005	04/03/2013	Active	NO
5	U24117TN1999PLC043439	PRODORITE ANTICORROSIVES LIMITED	Director	25/03/2005	25/03/2005	-	Amalgamated	NO
6	U74999TN1997PLC039545	NET ACCESS INDIA LIMITED	Director	08/04/2005	08/04/2005	24/03/2011	Active	NO
7	U40100TN1985PLC012425	SOUTHERN ENERGY DEVELOPMENT CORPORATION LIMITED	Director	12/04/2005	12/04/2005	-	Active	NO
8	U30007TN2000PTC045768	LASER WORDS PRIVATE LIMITED	Director	15/03/2006	15/03/2006	04/11/2011	Active	NO
9	U26990TN2008PLC069898	CELLARIS REFRACTORIES INDIA LIMITED	Director	19/11/2008	19/11/2008	-	Active	NO
10	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LTD	Director appointed in casual vacancy	12/10/2010	12/10/2010	-	Active	NO

Name :

Mr. Ramesh Veeraraghavan

Designation :

Director

Address :

Old No. 55, New No. 17, 20^th Street, Anna Nagar, Chennai – 600040, Tamilnadu, India

Date of Birth/Age :

16.07.1957

Date of Appointment :

04.06.2009

DIN No.:

01412093

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140TN1972PLC006192	MURUGAPPA MANAGEMENT SERVICES LIMITED	Director	30/07/2007	22/12/2006	30/03/2012	Active	NO
2	U24117TN1999PLC043439	PRODORITE ANTICORROSIVES LIMITED	Director	24/07/2007	25/01/2007	-	Amalgamated	NO
3	U40100TN1985PLC012425	SOUTHERN ENERGY DEVELOPMENT CORPORATION LIMITED	Director	24/07/2007	25/01/2007	20/07/2011	Active	NO
4	U74999TN1997PLC039545	NET ACCESS INDIA LIMITED	Director	24/07/2007	27/01/2007	26/07/2011	Active	NO
5	U26990TN2008PLC069898	CELLARIS REFRACTORIES INDIA LIMITED	Director	19/11/2008	19/11/2008	16/03/2009	Active	NO
6	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	04/06/2009	17/01/2009	-	Active	NO

Name :

Mr. Deepak Paul Leo Dorairaj

Designation :

Director

Address :

O.No. 33, N.No. 10, Conran Smith Road, Gopalapuram, Chennai – 600086, Tamilnadu, India

Date of Birth/Age :

30.06.1956

Date of Appointment :

06.06.2011

DIN No.:

03353414

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29259GJ1979PLC003467	STERLING ABRASIVE LIMITED	Director	06/06/2011	17/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.05.2013

Names of Shareholders	No. of Shares
Nitinbhai S. Parikh	7494
Nirav Nitin Parikh	10000
Deval Nitin Parikh	1000
Payal Nitin Parikh	1250
Viralben Nitinbhai Parikh	1250
Radhe Investment Private Limited, India	6
Ashaben Nitinbhai Parikh	15000
Carborundum Universal Limited, India	54000
Total	90000

As on 25.05.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	60.00
Directors or relatives of directors	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Grinding Wheels, Full range of Vitrified and Resin Bonded Grinding Wheels.

Products/ Services :

ITC Code No.	Product Descriptions
68041000	Grinding Wheels – FC & DC

GENERAL INFORMATION

Customers :

· JK Files and Tools

Rane

Spicer

Bosch

Kar Mobiles Limited

SKF

Amtek

Gajra Group

TATA

Wendt

No. of Employees :

Not Available

Bankers :

State Bank Of India, G.V.M.S.A.V. Odhav Branch, Odhav Road, Ahmedabad - 382415, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand from banks (Secured by hypothecation of Current Assets and Equitable Mortgage of Fixed Assets, both movable and immovable.)	14.781	0.000
Total	14.781	0.000

Banking Relations :	--
Auditors :
Name :	J.T. Shah and Company Chartered Accountants
Address :	201, 202 Lalita Complex, 352/3 Rasal Marg, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26444420/ 26444430/ 26444440
Fax No.:	91-79-26560440
E-Mail :	info@jtshahco.com
PAN No.:	AABFJ6616J
Holding Company :	Carborundum Universal Limited, India CIN No.: L29224TN1954PLC000318
Associates :	· Wendt India Limited CIN No.: L85110KA1980PLC003913 Murugappa Morgan Thermal Ceramics Limited CIN No.: U26919TN1982PLC009622 Net Access India Limited CIN No.: U74999TN1997PLC039545

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90000	Equity Shares	Rs. 100/- each	Rs. 9.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.000	9.000	9.000
(b) Reserves & Surplus	284.917	246.819	203.848
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	293.917	255.819	212.848
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	13.236	12.494	9.285
(c) Other long term liabilities	0.102	0.195	0.092
(d) long-term provisions	0.388	0.724	1.267
Total Non-current Liabilities (3)	13.726	13.413	10.644
(4) Current Liabilities
(a) Short term borrowings	14.781	0.000	0.000
(b) Trade payables	33.524	33.542	40.021
(c) Other current liabilities	23.800	17.008	9.868
(d) Short-term provisions	33.886	31.189	27.277
Total Current Liabilities (4)	105.991	81.739	77.166
TOTAL	413.634	350.971	300.658
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	198.502	110.011	100.477
(ii) Intangible Assets	1.567	1.708	0.719
(iii) Capital work-in-progress	5.358	1.460	0.296
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11.652	15.085	4.639
(e) Other Non-current assets	0.027	0.349	0.000
Total Non-Current Assets	217.106	128.613	106.131
(2) Current assets
(a) Current investments	0.000	52.559	24.220
(b) Inventories	84.956	80.681	74.363
(c) Trade receivables	92.020	73.480	80.431
(d) Cash and cash equivalents	4.851	7.735	4.793
(e) Short-term loans and advances	12.620	7.544	10.277
(f) Other current assets	2.081	0.359	0.443
Total Current Assets	196.528	222.358	194.527
TOTAL	413.634	350.971	300.658

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	523.239	475.779	416.426
		Other Income	3.792	5.827	1.483
		TOTAL (A)	527.031	481.606	417.909
Less	EXPENSES
		Cost of materials consumed	166.042	156.635	138.906
		Purchase of Stock in Trade	2.795	2.642	1.986
		Employee Benefits Expenses	70.314	61.586	49.591
		Other Expenses	185.814	161.955	134.181
		Changes in inventories of Finished Goods, Work in Progress and Stock in Trade	(3.304)	(10.614)	(10.234)
		TOTAL (B)	421.661	372.204	314.430
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		105.370	109.402	103.479
Less	FINANCIAL EXPENSES (D)		1.955	0.028	0.050
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		103.415	109.374	103.429
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.299	7.343	6.596
	PROFIT BEFORE TAX (E-F) (G)		94.116	102.031	96.833
Less	TAX (H)		30.413	32.690	32.623
	PROFIT AFTER TAX (G-H) (I)		63.703	69.341	64.210
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		61.189	42.998	27.323
Less	APPROPRIATIONS
		Transfer to General Reserve	25.000	25.000	25.000
		Dividend	22.500	22.500	20.250
		Tax on Dividend	3.824	3.650	3.285
	BALANCE CARRIED TO THE B/S		73.568	61.189	42.998
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods (F.O.B) value through Export house/ Direct	NA	115.087	96.252
	TOTAL EARNINGS		NA	115.087	96.252
	IMPORTS
		Raw Materials	NA	23.761	31.110
		Component, Spares and Packing Material	NA	0.820	1.105
		Capital Goods	NA	0.116	0.000
		Trading Purchase	NA	0.460	0.046
	TOTAL IMPORTS		NA	25.157	32.261
	Earnings Per Share (Rs.)		707.810	770.46	713.45

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	12.09	14.40	15.36
Net Profit Margin (PBT/Sales)	(%)	17.99	21.45	23.25
Return on Total Assets (PBT/Total Assets}	(%)	23.05	29.19	32.24
Return on Investment (ROI) (PBT/Networth)		0.32	0.40	0.45
Debt Equity Ratio (Total Debt/Networth)		0.05	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.85	2.72	2.52

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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS

HIGH COURT OF GUJARAT TAX APPEAL No. 2485 of 2010

Status: PENDING (Converted from : ST/3353/2010) CCIN No : 001092201002485 Last Listing Date: 11/01/2012 Coram: HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX-IV

MR.VARUN K.PATEL for: Appellant(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

STERLING ABRASIVE LTD

MRS SWATI SOPARKAR for :Opponent(s) 1

Presented On : 29/11/2010 Registered On : 29/11/2010 Bench Category : DIVISION BENCH District : AHMEDABAD Case Originated From: THROUGH ADVOCATE Listed : 1 times Stage Name : TAX APPEALS - GROUP D MATTERS Classification - DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA Act - INCOME-TAX ACT, 1961

Office Details

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/08/2010

VAKALATNAMA

MR.VARUN K.PATEL ADVOCATE for PETITIONER(s) 1

-

MR.VARUN K.PATEL:1

2

15/08/2010

VAKALATNAMA

MRS SWATI SOPARKAR ADVOCATE for RESPONDENT(s) 1

-

MRS SWATI SOPARKAR:1

3

07/02/2012

VAKALATNAMA

MRS SWATI SOPARKAR ADVOCATE for RESPONDENT(s) 1

5

MRS SWATI SOPARKAR:1

4

29/09/2012

APPEARANCE NOTE

MR.VARUN K.PATEL ADVOCATE for PETITIONER(s) 1

-

MR.VARUN K.PATEL:1

Court Proceedings

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

11/01/2012

9

-

TAX APPEALS - GROUP D MATTERS

FIXED RULE / ADMIT

· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgment/Order

1

TAX APPEAL/2485/2010

· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI

11/01/2012

N

ORDER

Certified Copy

S. No.

ApplicantName

ApplicationType

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MRS MAUNA M BHATT

ORDINARY

12/01/2012

O/1234/2012

11/01/2012

17/01/2012

18/01/2012

Delivered

ORDER

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90107641	16/02/2013 *	87,350,000.00	STATE BANK OF INDIA	G.V.M.S.A.V. ODHAV BRANCH, ODHAV ROAD, AHMEDABAD - 382415, GUJARAT, INDIA	B69769701
2	90108593	22/09/1989	7,200,000.00	BANK OF BARODA	BHADRA BRANCH, AHMEDABAD, GUJARAT, INDIA	-

CORPORATE INFORMATION

Subject is an ISO 9001:2008 certified company, incorporated under the provisions of the Companies Act, 1956. Company is a subsidiary of Carborundum Universal Limited. Company is one of the leading Manufacturer of Grinding Wheels, Full range of Vitrified and Resin Bonded Grinding Wheels. The company caters to major industries like auto, auto ancillary, bearings, steels, blades and knives and general engineering. Company also caters to the need of agro industries in terms of Cone Polisher, Dal Roller, Rice Rollers, etc.

MANUFACTURING

The manufacturing teams performed creditably to service the enhanced demand requirements of the markets. The additional capacities built up over last 3 years in various product lines helped the company to capture the benefits of the surge in volume.

Investments for scaling up and upgrading production facilities were undertakes across all business segments. During the current year company purchased Lease Hold Land in odhav GIDC for Rs. 64.891 Millions for further growth. Total Capital Expenditure (Excluding Land Cost) of Rs. 38.860 Millions was incurred during the year taking the total Capital expenditure during the Last 3 years to Rs. 66.237 Millions.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
1. Disputed demand of Income Tax and T.D.S. [Against which the company has paid Rs. 5.562 Millions as under protest (Previous Year Rs. 3.899 Millions)]	5.669	3.899
2. Dispute demand of Sales Tax [Against which the company has paid Rs. 1.004 Millions (Previous Year Rs. 1.004 Millions)]	2.275	2.275
3. Disputed demand of ESI [Against which the company has paid Rs. 0.097 Million (Previous Year Rs. 0.152 Million)]	0.493	0.603
4. Disputed demand of Service Tax and Penaltyu [Against which the company has paid Rs. Nil under Protest (Previous Year Nil)]	3.769	0.963
5. Disputed demand of Central Excise and Penalty [Against which the company has paid Rs. 0.075 Million under protest (Previous Year Rs. 0.075 Million)]	1.396	1.396
6. Estimated amount of Contracts remaining to be executed on Capital account	9.090	9.722
7. Employees demands pending before labour court	Amount Not ascertainable	Amount Not ascertainable

FIXED ASSETS:

v Tangible Assets

Leasehold Land

Buildings

Plant and Machinery

Office Equipments

Furniture and Fixtures

Vehicles

v Intangible Assets

Software and Licenses

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceedingfor 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. 61.79
UK Pound	1	Rs. 98.66
Euro	1	Rs. 83.42

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.