MIRA INFORM REPORT

PRELIMINARY REPORT

Report Date :

30.10.2013

IDENTIFICATION DETAILS

Name :	STERLING ABRASIVE LIMITED
Registered Office :	Plot No. 45/ 46, G.I.D.C. Industrial Estate, Odhav Road, Ahmedabad – 382 415, Gujarat
Country :	India
Financials (as on) :	31.03.2011
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 and Exporter of Grinding Wheels.
No. of Employees :	500 (Approximately)

NOTES :

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

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Mahesh Shah
Designation :	Key Executive
Contact No.:	91-9323223712
Date :	27.02.2012

LOCATIONS

Registered Office/ Factory :	Plot No. 45/ 46, G.I.D.C. Industrial Estate, Odhav Road, Ahmedabad – 382 415, Gujarat, India
Tel. No.:	91-79-22870905/ 22870907/ 30911595/ 30911655/ 31042346 (Sales)
Mobile No.:	91-9323223712 (Mr. Mahesh Shah)
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 Nagpur/ MP Mumbai Hyderabad Delhi Punjab Pune Gujarat Jaipur Nashik

DIRECTORS

As on 06.06.2011

Name :	Mr. Srinivasan Rangarajan
Designation :	Director
Address :	"DHANYA", 126, Nandidurg Road, Bangalore - 560 046, Karnataka, India
Date of Birth/Age :	10.09.1941
Date of Appointment :	22.04.2009
DIN No.:	00043658
Name :	Mr. Nirav Nitin Parikh
Designation :	Managing director
Address :	"Viral" 1278, Near Law College, Ellisbridge, Ahmadabad-380 006, Gujarat, India
Date of Birth/Age :	25.02.1966
Date of Appointment :	01.07.2005
DIN No.:	00042146
Name :	Mr. Nitin Shantilal Parikh
Designation :	Whole-time director
Address :	"Viral" 1278, Near Law College, Ellisbridge, Ahmedabad-380 006, Gujarat, India
Date of Birth/Age :	30.03.1940
Date of Appointment :	27.07.1979
DIN No.:	00041876
Name :	Mr. Sudhir Indravadan Nanavati
Designation :	Director
Address :	“ARCHIT", S.M. Road, Ambawadi, Ahmedabad-380 015, Gujarat, India
Date of Birth/Age :	29.09.1947
Date of Appointment :	27.07.1979
DIN No.:	00050236
Name :	Mr. Srinivasan Krishnaswamy
Designation :	Director
Address :	34/4, Arunachalam Road, Kotturpuram, Chennai - 600 085, Tamilnadu, India
Date of Birth/Age :	22.11.1957
Date of Appointment :	11.12.2001
DIN No.:	00088424
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 :	17.01.2009
DIN No.:	01412093
Name :	Mr. Paul Leo Deepak Dorairaj
Designation :	Additional director
Address :	Old No. 33, New No. 10, Conran Smith Road, Chennai – 600086, Tamilnadu, India
Date of Birth/Age :	30.06.1956
Date of Appointment :	17.01.2011
DIN No.:	03353414

KEY EXECUTIVES

Name :	Mr. Mahesh Shah
Designation :	Key Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 06.06.2011

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

Equity Share Break up (Percentage of Total Equity)

As on 06.06.2011

Category	Percentage
Bodies corporate	60.00
Directors or relatives of Directors	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Grinding Wheels.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Grinding Wheels and the like, and parts thereof	6801.10
Finished Sticks, Dressing Sticks, Slip Stones, Filter, etc.	6801.90
Fixing Powder	3823.00

Exports :

Products :

Grinding Wheels

Countries :

European Countries

America

Imports :

Products :

Raw Material

Countries :

European Countries

Terms :

Selling :

L/C/ Cash/ Credit (30, 60 and 90 days)

Purchasing :

L/C/ Cash/ Credit (30, 60 and 90 days)

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Installed Capacity Tons	Actual Production in pieces
Grinding Wheels	2800	630590

GENERAL INFORMATION

Customers :	Manufacturer
No. of Employees :	500 (Approximately)
Bankers :	State Bank of India, G.V.M.S.A.V. Odhav Branch, Odhav Road, Ahmedabad – 382410, Gujarat, India

Banking Relations :	--
Auditors :
Name :	J.T. Shah and Company Chartered Accountants
Address :	201, 202 Lalita Complex, 352/3 Rasal Marg, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26444420/ 26444430/ 26444440
Fax No.:	91-79-26560440
E-Mail :	info@jtshahco.com
PAN.:	AABFJ6616J
Holding Company :	· Carborundum Universal Limited CIN No.: L29224TN1954PLC000318 · Wendt India Limited · CIN No.: L85110KA1980PLC003913
Associates :	Murugappa Morgan Thermal Ceramics Limited CIN No.: U26919TN1982PLC009622

CAPITAL STRUCTURE

As on 31.03.2011

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

Notes:

(1) 90000 Equity Shares of Rs.100/- each fully paid up

(2) Out of the 90000 Equity shares, 75000 (Previous Year 75000) shares of Rs.100/- each were issued as fully paid up Bonus Shares by capitalization of General Reserve.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		9.000	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		203.848	163.393	129.129
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		212.848	172.393	138.129
LOAN FUNDS
1] Secured Loans		0.000	0.000	3.966
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	3.966
DEFERRED TAX LIABILITIES		9.284	9.945	7.644
TOTAL		222.132	182.338	149.739
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		101.195	98.038	87.078
Capital work-in-progress		2.602	0.737	0.909
INVESTMENT		24.220	15.067	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	74.363	47.651	42.448
	Sundry Debtors	80.431	63.245	55.047
	Cash & Bank Balances	4.793	8.381	1.426
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.053	11.159	4.780
Total Current Assets		172.640	130.436	103.701
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	53.755	38.562	23.298
	Current Liabilities	1.235	2.389	2.858
	Provisions	23.535	20.989	15.793
Total Current Liabilities		78.525	61.940	41.949
Net Current Assets		94.115	68.496	61.752
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		222.132	182.338	149.739

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	409.562	317.521	285.959
		Other Income	8.347	1.524	4.202
		TOTAL (A)	417.909	319.045	290.161
Less	EXPENSES
		Consumption materials changes inventories	165.419	118.432	223.197
		Manufacturing service costs	52.071	34.918
		Employee related costs	40.789	31.717
		Administrative selling other expenses	56.152	44.598
		Prior Period Items	0.000	(0.534)
		TOTAL (B)	314.431	229.131	223.197
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		103.478	89.914	66.964
Less	FINANCIAL EXPENSES (D)		0.049	0.319	3.496
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		103.429	89.595	63.468
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.596	5.821	5.451
	PROFIT BEFORE TAX (E-F) (G)		96.833	83.774	58.017
Less	TAX (H)		32.623	28.299	20.476
	PROFIT AFTER TAX (G-H) (I)		64.210	55.475	37.541
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		27.323	17.838	16.090
Less	APPROPRIATIONS
		Transfer to General Reserve	25.000	25.000	20.000
		Dividend	20.250	18.000	13.500
		Tax on Dividend	3.285	2.990	2.293
	BALANCE CARRIED TO THE B/S		42.998	27.323	17.838
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	96.252	70.216	74.856
	TOTAL EARNINGS		96.252	70.216	74.856
	IMPORTS
		Raw Materials	31.110	16.141	17.276
		Stores & Spares	1.105	0.472	0.633
		Capital Goods	0.000	0.718	0.000
		Others	0.046	0.000	0.047
	TOTAL IMPORTS		32.261	17.331	17.956
	Earnings Per Share (Rs.)		713.45	616.38	417.12

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.36	17.38	12.95
Net Profit Margin (PBT/Sales)	(%)	23.64	26.38	20.29
Return on Total Assets (PBT/Total Assets}	(%)	35.36	36.67	30.41
Return on Investment (ROI) (PBT/Networth)		0.45	0.48	0.42
Debt Equity Ratio (Total Liability/Networth)		0.37	0.35	0.33
Current Ratio (Current Asset/Current Liability)		2.20	2.10	2.47

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due small micro enterprises	0.867	0.528	23.298
Creditors due others	52.888	38.034
Total	53.755	38.562	23.298

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	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
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	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	No
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	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Financial Performance

The Company's net sales stood at Rs.409.500 Millions, which represents a 29% increase over the previous year sales of Rs.317.500 Millions. The Profits from operation were at Rs.96.800 Millions, up by 16.3 % over the previous year.

Domestic and Export Sales grew by 30.15% and 25.47% respectively. Higher growth rates were possible thanks to new product lines, focused market and customer initiatives. The Company has been able to increase its market share in most of its product lines. Sales growth was driven by good order inflow from all customer segments.

The manufacturing team supported the marketing efforts ably by ensuring product availability and meeting stiff delivery schedules.

Investments for scaling up and upgrading production facilities were undertaken across all business segments. A total Capital Expenditure of Rs.10.683 Millions was incurred during the year taking the total Capital expenditure during the Last 3 years to Rs.34.807 Millions.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90107641
Corporate identity number of the company	U29259GJ1979PLC003467
Name of the company	STERLING ABRASIVE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No 45/46 G I D C, Industrial Estate, Odhva Road, Ahmedabad – 382415, Gujarat, India
Type of charge	Immovable Property Floating Charge
Particular of charge holder	State Bank of India, G.V.M.S.A.V. Odhav Branch, Odhav Road, Ahmedabad – 382410, Gujarat, India Email : bimal.k@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental agreement of loan- cum- hypothecation and deposit of title deed creating equitable mortgage on immovable properties
Date of instrument Creating the charge	30.03.2009
Amount secured by the charge	Rs.44.630 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 0.25 above SBAR Terms of Repayment Payable on Demand Margin Raw material 25%, SIP - 40%, FG - 30 %, receivable (cover period 90 days)- 50%, LC - 25%, EPC - 10% Extent and Operation of the charge Floating charge on movable assets, plant machineries, stock, raw material, finished goods, semi finished goods, and immovable property of the company
Short particulars of the property charged	All that pieces or parcel of leasehold land bearing plot nos. 45 and 46 admeasuring 6967 sq. mts. in the Odhav Industrial Estate of revenue survey no.552,535,536 and 537 within the village limits of Mouje Odhav, City Taluka in the registration District of Ahmedabad and Sub District of Ahmedabad - 7 together with superstructure amdeasuring 3483.50 sq. mts. standing thereto and floating charge on movable assets, plant and machinery, book debts, F.G., semi F.G., raw material etc.
Date of latest modification prior to the present modification	23.09.2006
Particulars of the present modification	Cash credit limit enhanced upto 30.000 Millions inclusive of EPC of Rs. 15.000 Millions, there is no change in term loan, the LC limit enhanced from Rs. 2.500 Millions to Rs. 5.000 Millions, and credit exposure limit is to the extent of Rs.1.130 Millions, total charge is as under CC limit Rs. 30.000 Millions + term loan Rs. 8.500 Millions + LC Rs. 5.000 Millions + credit exposure Rs. 1.130 Millions charge is also on immovable property

FIXED ASSETS:

• Land – Leasehold
• Buildings
• Plant and Machinery
• Furniture and Fixtures
• Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.46
UK Pound	1	Rs.98.99
Euro	1	Rs.84.72

INFORMATION DETAILS

Report Prepared by :

DPH

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.