MIRA INFORM REPORT

Report Date :

07.09.2013

IDENTIFICATION DETAILS

Name :	VESUVIUS INDIA LIMITED
Registered Office :	P-104, Taratala Road, Kolkata – 700088, West Bengal
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	06.09.1991
Com. Reg. No.:	21-052968
Capital Investment / Paid-up Capital :	Rs.203.000 Millions
CIN No.: [Company Identification No.]	L26933WB1991PLC052968
TAN No.: [Tax Deduction & Collection Account No.]	CALV00709C CALV01863B
PAN No.: [Permanent Account No.]	AAACV8995Q
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Refractory.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 13730000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track record. Overall financials of the company appears to be strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for business dealing 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA: Suspended (Long Term Rating)
Rating Explanation	High credit quality and low credit risk.
Date	13, July 2012

Rating Agency Name	CRISIL
Rating	A1+: Suspended (Letter of Credit)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	13, July 2012

Reason of Suspension: Non Co-operative to provide adequate information for rating.

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 DENIED

Management Non Co-Operative (91-33-30410600)

LOCATIONS

Registered Office/ Factory 1 :	P-104, Taratala Road, Kolkata – 700088, West Bengal, India
Tel. No.:	91-33-30410600/ 24012842/ 3898/ 0215
Fax No.:	91-33-24013976/ 1235
E-Mail :	vesuviusindia@vesuvius.com vesuviusindia@in.vesuvius.com saibal.Bandyopadhyay@vesuvius.com
Website :	www.vesuviusindia.com
Factory 2 :	Plot No. 13, 14 and 15, Block “E”, IDA Autonagar, Visakhapatnam-530012, Andhra Pradesh, India
Tel. No.:	91-891-22749120 / 22755419 / 22755408
Fax No.:	91-891-22587511
E-Mail :	tumma.antony@in.vesuvius.com
Factory 3 :	Survey No. 90 and 98, Part, Block G, Industrial Park, Fakirtakya Village, Autonagar, Visakhapatnam-530046, Andhra Pradesh, India
Tel. No.:	91-891-2749120 / 2755419 / 2755408
Fax No.:	91-891-2587511
E-Mail :	tumma.antony@vesuvius.com
Factory 4 :	212/B, G.I.D.C Estate, Mehsana - 384002, Gujarat, India
Tel. No.:	91-2762-252948 / 949
Fax No.:	91-2762-2252909
E-Mail :	anil.raut@in.vesuvius.com chakrapani.Devburman@vesuvius.com

DIRECTORS

As on: 31.03.2012

Name :	Dr. Saibal Kanti Gupta
Designation :	Chairman
Name :	Mr. Tanmay Kumar Ganguly
Designation :	Managing Director
Date of Birth/Age :	49 Years
Qualification :	B. Com (Hons), ACA
Experience :	25 Years
Name :	Mr. Shekhar Datta
Designation :	Director
Name :	Dr. Claude Dumazeau
Designation :	Director
Name :	Mr. Biswadip Gupta
Designation :	Director
Qualification :	B.E. (Metallurgy) MBA
Name :	Mr. Yves M.C.M.G. Nokerman
Designation :	Director
Name :	Mr. Sudipto Sarkar
Designation :	Director
Name :	Mr. Francois Clement Wanecq
Designation :	Director

KEY EXECUTIVES

Audit Committee :
	Dr. Saibal Kanti Gupta, Chairman Mr. Shekhar Datta Mr. Biswadip Gupta Mr. Yves M.C.M.G. Nokerman Mr. Sudipto Sarkar
Share Transfer and Investor Grievance Committee :
	Dr. Saibal Kanti Gupta Mr. Shekhar Datta Mr. Tanmay Kumar Ganguly Mr. Biswadip Gupta Mr. Sudipto Sarkar
Name :	Mr. Taposh Dominic Roy
Designation :	Company Secretary
Emil ID :	Taposh.Roy@vesuvius.com
Executive Council :
Name :	Mr. Tanmay Kumar Ganguly
Designation :	Managing Director
Name :	Mr. Sudarshan Das
Designation :	Chief Executive- Sales
Name :	Mr. Snajoy Datta
Designation :	Chief Executive Officer
Name :	Mr. Subrata Roy
Designation :	Chief Executive-Operations

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	11277650	55.57
Sub Total	11277650	55.57
Total shareholding of Promoter and Promoter Group (A)	11277650	55.57
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2880163	14.19
Financial Institutions / Banks	500	0.00
Foreign Institutional Investors	2178066	10.73
Sub Total	5058729	24.92
(2) Non-Institutions
Bodies Corporate	783546	3.86
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2285102	11.26
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	802928	3.96
Any Others (Specify)	88125	0.43
Non Resident Indians	85343	0.42
Clearing Members	2702	0.01
Overseas Corporate Bodies	80	0.00
Sub Total	3959701	19.51
Total Public shareholding (B)	9018430	44.43
Total (A)+(B)	20296080	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)	20296080	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Refractory.

Products :

Item Code Number	Products Description
69.03	Industrial Ceramics for Continuous Casting and Pouring of Molten Metals Slide Gate Plates and Nozzles Refractory Ceramics for Industrial Use Carbon and Graphite Products

PRODUCTION STATUS (As on 31.12.2011)

Particulars	Unit	Installed Capacity	Actual Production
Refractories (Shaped)	Pieces	778400	553253
Refractories (Unshaped )	Tons	100500	48528

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Axis Bank Limited Hongkong Bank State Bank of India

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Building No.10, 8^th Floor, Tower – BDLF Cyber City, Phase – II, Gurgaon – 122002, Haryana, India
Enterprises having control over the Company with which no transactions have taken place during the year :	Vesuvius plc, United Kingdom - Ultimate Holding Company from December 19, 2012. Cookson Group Limited (Formerly, Cookson Group plc - Ultimate Holding Company upto December 19, 2012), United Kingdom - Holding Company of Cookson Financial Limited, United Kingdom. Cookson Financial Limited, United Kingdom-Holding Company of Vesuvius Group Limited, U.K.
Enterprises having control over the Company with which transaction has taken place during the year and previous year :	Vesuvius Group Limited, United Kingdom - Immediate holding company
Fellow Subsidiaries :	Vesuvius Group S. A. Vesuvius Deutschland GmbH Vesuvius South Africa (Pty) Limited Vesuvius UK Limited Vesuvius Crucible Company Vesuvius USA Vesuvius Advanced Ceramics (Suzhou) Company Limited Wuhan Wugang Vesuvius Advanced Ceramics Company Limited Advent Processing Engineering Inc. Vesuvius Mexico S.A. de C.V. Vesuvius Malaysia SDN BHD Vesuvius Corporation S. A. Vesuvius Poland Sp., z.o.o. (Formerly Vesuvius Skawina Materialy Ogniotrwale Sp., z.o.o.) Vesuvius (Thailand) Co., Ltd Foseco (Thailand) Limited Foseco India Limited Vesuvius TK Refrakter Sanayi Ve Ticaret AS Vesuvius Belgium N.V. PT. Foseco Indonesia Foseco Pty Limited Foseco Industrial e Commercial Ltda Foseco Dokum Sanayi ve Ticaret Limited Foseco International Limited (Middle East Office)
Names of Principal Group Companies/ fellow subsidiaries :	Cookson Overseas Limited Cookson India Private Limited (upto December 19, 2012)

CAPITAL STRUCTURE

As on: 31.12.2012

Authorised Capital :

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

Issued Capital :

No. of Shares	Type	Value	Amount
20300000	Equity Shares (Of the above : 3,920 equity shares of Rs10 each are held in abeyance)	Rs.10/- each	Rs.203.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20296080	Equity Shares	Rs.10/- each	Rs.203.000 Millions

Note- Shares in abeyance :

In compliance with the provisions of Section 206A of the Companies Act, 1956, offer of Rights Shares of 3,920 equity shares out of the Rights Issue made in the year 1997 have been held in abeyance.

Reconciliation of shares outstanding at the beginning and at the end of the reporting year

	As at December 31, 2012
	Number	Rs. In Millions
Equity shares
At the commencement of the year	20296080	203.000
Shares issued during the year	-	-
At the end of the year	20296080	203.000

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares with par value of Rs. 10/- per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

Shares held by a holding company

	As at December 31, 2012
	Number	Rs. In Millions
Equity share of Rs 10 each fully paid up held by Holding company - Vesuvius Group Limited, (U.K.) *#	11277650	112.800

* Subsidiary of Cookson Group plc, U.K. upto December 19, 2012 and Vesuvius plc, U. K. from December 19, 2012, the ultimate holding Company.

# The companies, namely Vesuvius plc, Cookson Group Limited (formerly, Cookson Group plc) and Cookson Financial Limited, all incorporated in the United Kingdom, do not hold my shares of Vesuvius India Limited directly but are holding company of Vesuvius India Limited through a chain of subsidiary holdings.

Particulars of shareholders holding more than 5% shares of a class of shares

	As at December 31, 2012
	Number	% of total shares in the class
Equity share of Rs 10 each fully paid-up held by
-Vesuvius Group Limited, U.K., holding company	11277650	55.57
- HDFC Trustee Company Limited- HDFC Mid Cap Opportunities Fund	1111500	5.48

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	203.000	203.000
(b) Reserves & Surplus	3229.500	2778.000
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	3432.500	2981.000
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	75.900	63.600
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	68.000	62.000
Total Non-current Liabilities (3)	143.900	125.600
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	759.300	857.600
(c) Other current liabilities	129.600	130.000
(d) Short-term provisions	137.800	129.900
Total Current Liabilities (4)	1026.700	1117.500
TOTAL	4603.100	4224.100
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1170.000	1085.200
(ii) Intangible Assets	4.300	1.400
(iii) Capital work-in-progress	220.900	304.300
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	160.100	127.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	8.200	5.100
Total Non-Current Assets	1563.500	1523.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	513.100	484.400
(c) Trade receivables	1660.700	1490.100
(d) Cash and cash equivalents	721.200	541.00
(e) Short-term loans and advances	139.000	154.100
(f) Other current assets	5.600	31.500
Total Current Assets	3039.600	2701.100
TOTAL	4603.100	4224.100

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		202.961
2] Share Application Money		0.000
3] Reserves and Surplus		2325.717
4] (Accumulated Losses)		0.000
NETWORTH		2528.678
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		57.961
TOTAL		2586.639
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		919.756
Capital work-in-progress		195.667
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS and ADVANCES
	Inventories	379.184
	Sundry Debtors	1155.165
	Cash and Bank Balances	561.086
	Other Current Assets	1.005
	Loans and Advances	1638.505
Total Current Assets		3734.945
Less : CURRENT LIABILITIES and PROVISIONS
	Sundry Creditors	592.648
	Other Current Liabilities	84.800
	Provisions	1586.281
Total Current Liabilities		2263.729
Net Current Assets		1471.216
MISCELLANEOUS EXPENSES		0.000
TOTAL		2586.639

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Income	5355.300	5123.600	4203.211
		Sale of services	268.100	279.000	197.947
		Other Income	35.200	46.500	53.255
		TOTAL (A)	5658.600	5449.100	4454.413
Less	EXPENSES
		Cost of materials consumed	2255.600	2214.100
		Purchase of stock-in-trade	879.300	882.800
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	32.300	(32.100)
		Employee benefit expenses	338.700	307.600
		Other expenses	1162.300	1097.100
		TOTAL (B)	4668.200	4469.500	3577.082
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		990.400	979.600	877.331
Less	FINANCIAL EXPENSES (D)		0.600	6.100	0.204
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		989.800	973.500	877.127
Less/ Add	DEPRECIATION/ AMORTISATION (F)		163.500	146.700	129.113
	PROFIT BEFORE TAX (E-F) (G)		826.300	826.800	748.014
Less	TAX (H)		268.700	274.600	259.510
	PROFIT AFTER TAX (G-H) (I)		557.600	552.200	488.504
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2264.700	1867.700	1522.596
	APPROPRIATIONS
		Transfer to General Reserve	55.800	55.200	48.850
		Proposed Dividend	91.300	86.300	81.184
		Tax on Dividend	14.800	13.700	13.484
	BALANCE CARRIED TO THE B/S		2660.400	2264.700	1867.582
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	218.600	314.000	235.449
		F.O.B Value of Deemed Exports	550.300	500.000	389.684
		Reimbursement of expenses	19.000	30.400	16.090
	TOTAL EARNINGS		787.900	844.400	641.223
	IMPORTS
		Raw Materials	1333.700	1113.800	860.215
		Stores and Spares	15.000	15.600	15.461
		Other Goods-Trading	102.900	119.200	72.710
		Capital Goods	26.200	39.400	63.776
		Toolings	28.300	25.900	25.920
	TOTAL IMPORTS		1506.100	1313.900	1038.082
	Earnings Per Share (Rs.)		27.48	27.21	24.07

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	9.85	10.13	10.97
Net Profit Margin (PBT/Sales)	(%)	15.43	16.14	17.80
Return on Total Assets (PBT/Total Assets}	(%)	19.57	21.80	16.07
Return on Investment (ROI) (PBT/Networth)		0.24	0.28	0.30
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.96	2.42	1.65

LOCAL AGENCY FURTHER INFORMATION

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

Note: No Charges Exist for Company

OPERATING AND FINANCIAL PERFORMANCE, INTERNAL CONTROL

It continued to be a difficult period for the Indian economy reflected by lower GDP, inflationary trends and lower industrial production. The steel industry, which comprises the biggest group ofthe Company's customers, alsofaced a similar difficult period. Poor availability of iron ore and other raw materials resulted in reduced production and major expansion projects have been delayed. These have had a negative impact on their business.

This year total revenue increased by over Rs.205.800 Millions driven by domestic growth in spite of the slowdown in domestic steel production while exports had marginally reduced.

Increase in raw material prices, energy and transportation and adverse foreign exchange fluctuation have placed a burden on the margins for the year. Margin decline was most severe at the beginning of the year. Focussed action on cost, internal efficiencies and price optimisation helped restore profitability by year end.

The Kolkata plant expansion was completed in April 2012 and the plant is ready to cater to the proposed increased demand of customers. Freehold land at Visakhapatnam has been purchased and possession obtained for setting up the fifth plant of the Company. An international standard Research and Development Centre is also proposed at this location.

The Company always engages with customers to enable them to be aware of the systems and processes internally followed by the Company. In one such interaction, Mr. AP Choudhry, Chairman and Managing Director of Rashtriya Ispat Nigam Limited visited their Blast Furnace -III at Visakhapatnam and interacted with the Vesuvius team working at that site. He was delighted with the processes being followed and appreciated that all team members strictly adhered to the Health and Safety norms.

The LD3 CSP caster-1 at Tata Steel was commissioned successfully in February 2012. Vesuvius provided the entire tundish refractory and application for this caster. The entire refractory job for the new 1.2 million tons per annum pellet ("MTPA") plant of BMM Ispat which was commissioned during the year was provided by the Company. Similar turnkey refractory supply and installation was done at Essar Steel's 6 MTPA iron ore pelletisation furnace in Paradip. The largest boiler gunning repair work was done for JSW Energy at Barmer during the year.

All four factories had been working at near full efficiency during the year. In-plant rejection for all manufactured items have been further reduced due to improved processes. Safety measures and processes have been installed at all plants and work sites.

The Company has in place an established internal control system designed to ensure proper recording of financial and operational information and compliance of various internal controls and other regulatory and statutory compliances. Internal Audit has been conducted on a pan India basis.

The Company has complied with the provision of the Code on Internal Control which require that the Directors review the effectiveness of internal controls including financial, operational and compliance control and risk management systems. Self certification exercises are also conducted by which senior management certify effectiveness of the internal control system for which they are responsible together with the Company's policies.

SEGMENTWISE PERFORMANCE

The Company is primarily a manufacturer and trader of refractory and is managed organizationally as a single unit. Accordingly, the Company is a single business segment company. Geographical (secondary) segment has been identified as domestic sales and exports.

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

It continues to be a difficult period for the Indian economy. GDP has become lower at around 5% while inflation remains high. Foreign exchange fluctuation have also added to the concerns and estimates had to be revised. The steel industry, which is the major customer of the Company, which have been impacted with shortage of iron ore and other raw material have reduced volumes and have delayed their expansion plans.

Competition activities have increased causing pressure on margins. International refractory companies are now strategically entering Indian and South Asian markets.

Other industries like Aluminium, Cement, Power etc where the Company also operates, have also been facing similar slow down due to reduced demand.

The Company trades in refractory based solutions and steel industry comprises the biggest group of its customers. Hence anything that affects the steel industry will have its one off effect on their business. India is set to emerge as the second largest producer and consumer of steel in the next few years and refractory being an essential requirement in steel industry will see increased demand. The Kolkata plant expansion was completed in April 2012 and is ready to meet any increased demands of the customer.

All business operations have risks and threats attached to them most of which may be outside the control of the Company. Apart from the concerns over raw material prices and availability, fluctuations in exchange rates, inflationary pressures, adverse political or regulatory developments, aggressive competition and chances of a reduction in customer output leading to lower demands are some perceived threats.

During the year a risk analysis and assessment was conducted in line with the Group requirements and no major risks were noticed.

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	31.12.2012	31.12.2011
Sales Tax	6.700	18.700
Income Tax matters
Other Income Tax matters	108.500	100.600
Excise Duty, Customs Duty and Service Tax matters	20.500	20.200

Note: Cost of tooling purchased during the earlier years were fully expensed for the purpose of ascertaining income tax liability for that years. Vide order dated December 16, 2003, the Income Tax Appellate Tribunal (ITAT) directed the department to allow expenses based on quantity consumed. The Company has disputed such decision on the contention that the entire purchase is issued to the production process and hence should be treated as consumption. Relevant order from authorities giving effect of ITAT order is yet to be received. The Company has made an application to the Hon'ble High Court at Calcutta seeking further clarifications of the ITAT order. The Company has again claimed full deduction in respect of tooling received during the year for determining the taxable income for the assessment year 2009-2010 and thereafter. Contingent liability with respect to tooling is included in para (c) above, under the head - 'Other Income Tax matters'.

(ii) A counter claim has been filed against the Company before the Hon'ble High Court at Calcutta by a customer for claims aggregating Rs 749 (previous year Rs 749) regarding certain disputes relating to goods supplied by the Company in prior years.

Statement of Standalone Unaudited Financial Results for the Quarter and Six Months ended June 30, 2013

(Rs. In Millions)

SL NO.	Particulars	Three Months ended 30.06.2013	Previous Three Months ended 31.03.2013	Year to date for previous period ended 30.06.2013
		Unaudited	Unaudited	Unaudited
1.	Income From Operations
	a) Net sales/income from operations (Net of excise duty)	1515.600	1444.400	2960.000
	b) Other Operating Income	1.700	1.400	3.100
	Total income from operations (net)	1517.300	1445.800	2963.100
2.	Expenditure
	a) Cost of materials consumed	625.600	557.800	1183.400
	b) Purchases of stock in trade	220.200	225.900	446.100
	c) Changes in inventories of finished goods, work in progress, and stock in trade - (Increase) / Decrease	(47.500)	(22.500)	(70.000)
	d) Employee benefits expenses	97.400	93.600	191.000
	e) Depreciation and amortization expense	40.200	41.100	81.200
	f) Other Expenditure	316.200	298.600	614.800
	Total Expenses	1252.100	1194.400	2446.500
3.	Profit from Operations before other income, finance costs and Exceptional Items (1-2)	265.200	251.400	516.600
4.	Other income	11.600	9.800	21.400
5.	Profit from ordinary activities before finance costs & exceptional items (3+4)	276.800	261.200	538.000
6.	Finance Costs	-	-	-
7.	Profit from ordinary activities after finance costs but before exceptional items (5-6)	276.800	261.200	538.000
8.	Exceptional Items	-	-	-
9.	Profit from ordinary activities before tax (7-8)	276.800	261.200	538.000
10.	Tax Expenses	100.000	84.800	184.800
11.	Net Profit from ordinary activities after tax (9-10)	176.800	176.400	353.200
12.	Extraordinary items (net of tax expensed nil)	-	-	-
13.	Net Profit for the period (11-12)	176.800	176.400	353.200
14.	Share of Profit of Associates	-	-	-
15.	Minority Interest	-	-	-
16.	Net Profit after taxes, minority interest and share of profit of associates (13+14+15)	176.800	176.400	353.200
17.	Paid up Equity Share Capital (Face Value Rs.10/- per share)	203.000	203.000	230.00
18.	Reserves excluding Revaluation Reserves as per Balance Sheet as at 31.12.2012
91. i.	Earnings per share (before extraordinary items) (of Rs.10/- each) (not annualised):
1.	Public Share holding
	a) Basic	8.71	8.69	17.40
	b) Diluted	8.71	8.69	17.10
19. ii.	Earnings per share (after extraordinary items) (of Rs.10/- each) (not annualised)
	a) Basic	8.71	8.69	17.40
	b) Diluted	8.71	8.69	17.10
A.	Promoters and Promoter Group shareholding
	Public shareholding
	- Number of shares	9018430	9018430	9018430
	- Percentage of shareholding	44.43%	44.43%	44.43%
	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	11277650	11277650	11277650
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100%	100%	100%
	- Percentage of shares (as a % of the total share capital of the Company)	55.57%	55.57%	55.57%

Particular	3 months ended 30.06.2013
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	NIL
Received during the quarter	2
Disposed of during the quarter	2
Remaining unresolved at the end of the quarter	NIL

Standalone Statement of Assets and Liabilities

	Particulars	As at Current half year ended 30.06.2013
		(Unaudited)
A	EQUITY AND LIABILITIES
1.	SHAREHOLDERS* FUNDS :
	(a) Share Capital	203.000
	(b) Reserves & Surplus	3582.700
	(c) Money received against share warrants	-
	Sub-total: Shareholders' Funds	3785.700
2.	Share application money pending allotment	-
3.	Minority Interest	-
4.	Non-current liabilities
	(a) Long-term borrowings	-
	(b) Deferred tax liabilities (net)	72.800
	(c) Other long-term liabilities	-
	(d) Long-term provisions	83.200
	Sub-total: Non-curreut liabilities	156.000
5.	Current Liabilities
	(a) Short-term borrowings	-
	(b) Trade payables	722.500
	(c) Other current liabilities	125.200
	(d) Short-term provisions	83.400
	Sub-total: Current liabilities	931.100
	TOTAL : EQUITY AND LIABILITIES	4872.800
B	ASSETS
1.	Non-Current Assets
	(a) Fixed Assets	1461.200
	(b ) Non-current investments	-
	(c) Deferred tax assets (net)	-
	(d) Long-term loans and advances	126.900
	(e) Other non-current assets	5.100
	Sub-total: Non-current assets	1593.200
2.	Current assets
	(a) Current investments	-
	(b) Inventories	609.900
	(c) Trade Receivables	1695.400
	(d) Cash and cash equivalents	794.900
	(e) Short-term loans and advances	175.400
	(f) Other current assets	4.000
	Sub-total: Current assets	3279.600
	TOTAL: ASSETS	4872.800

Notes

a) The Company is primarily a manufacturer and trader of refractories and is managed organisationally as a single unit. Accordingly, the Company is a single segment company,

b) Previous period's figures have been regrouped and/or rearranged wherever necessary.

c) Provision for current taxation has been made with reference to the profit for the quarter and in accordance with the provisions of Income Tax Act, T 961 and Rules framed there under. The ultimate tax liability for the assessment year 2014^2015, however, will be determined on the basis of total income for the year ending on March 31, 2014.

d) These unaudited results have been subjected to "Limited Review" by the Auditors of the Company

e) This statement has been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 27, 2013,

FIXED ASSETS

• Tangible Assets
• Freehold Land
• Leasehold Land
• Building
• Plant and Equipments
• Toolings
• Furniture and Fixture
• Vehicles
• Office Equipment
• Computer
• Electrical Installation

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.65.96
UK Pound	1	Rs.102.91
Euro	1	Rs.86.58

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.