Brickwork Ratings assigns BWR BBB- & BWR A3 for the Bank Loan Facilities of Cr of Balasore Alloys Limited.

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1 Rating Rationale Brickwork Ratings assigns BWR BBB- & BWR A3 for the Bank Loan Facilities of Cr of Balasore Alloys Limited. Brickwork Ratings (BWR) has assigned the following Ratings 1 for the Bank Loan facilities of Crores of Balasore Alloys Limited ( BAL or the Company ) sanctioned by consortium banks (State Bank of India is lead banker). Facility Fund Based : Cash Credits Fund Based: EPC/FBD (Sublimit CC) Non-Fund Based ILC / FLC Clean Letter of Credit (Sublimit) Bank Guarantee (Sublimit) Bank Guarantee Limits ( Cr) (42.46) (6.00) (14.22) 4.00 Total * Tenure Long Term Short Term Rating BWR BBB- (Pronounced as BWR Triple B Minus) (Outlook:Stable) BWR A3 (Pronounced as BWR A Three) INR One Hundred Eleven Crores & Eighty Four Lakhs only * Details about bank & loan wise breakup in Annexure I BWR has principally relied upon the audited financial results for FY13-FY15 and projections up to FY18 for Balasore Alloys Limited, publicly available information and information / clarifications provided by the management. The rating factors in the promoters experience and strong management, presence of captive chrome ore mine, installed capacity utilization for last three years, diversified customer base with growing export and moderate financial risk profile and successfully exited from CDR mechanism. However, the rating is constrained by risks associated with amalgamation of two units, susceptibility to electricity tariff hikes in the absence of captive power arrangement and inherent cyclicality of user industry. 1 Please refer to for definition of the Ratings Dec 2015

84 Crores of Balasore Alloys Limited ( BAL or the Company ) sanctioned by consortium banks (State Bank of India is lead banker).

2 Background: Balasore Alloys Limited (BAL) is a public Limited Company was incorporated in BAL is primarily engaged in mining of Chrome Ore from its Captive Mines and manufacturing Ferro Chrome of various grades which is sold in domestic and global markets which contributes ~25 per cent and ~75 per cent respectively. Its captive chrome ore mine covering an area of Hectares by Open Cast Mining method since 2000, explored and proven deposit of around 34 Million MT from existing lease. The mine is located in around 170 KMs from Company s Ferro Alloys plant and can to sustain production for next 30 years of operations (Mostly high (>52% Cr2O3) and medium (40-52% Cr2O3) grade Chrome Ore. The Company is having its registered office and manufacturing facility in Balasore, Odisha. Chrome ore mining site is located in Kaliapani, Sukinda, Odisha and its Corporate Office is located in Kolkata, West Bengal. The Company has installed 5 Submerged Electric Arc Furnaces with an annual capacity to produce 1, 25,000 MT of Ferro chrome. Currently it has capacity of 66MVA and proposed to increase 72MVA, COD is expect to start in April 2016 (Annual production capacity would increase to 1, 45,000MT from existing 1, 25,000MT). Management Profile: Mr. Anil Sureka is the Managing Director and has over 35 years of corporate experience in reputed organizations. His array of exposure percolates to areas like Finance, Project Planning etc. Mr. R K Parakh is having more than 24 years of experience in Accounting & Audit Function, Finance, Treasury, Export & Import Functions etc. During his career he had held key positions in various reputed organisation. Financial Performance: The Company reported a net revenue increase from Crs in FY 14 to Crs in FY15 resulting in 8.5% increase over the period. BAL was showing PAT since last couple of years ( Crs, Crs and Crs from FY 13 to FY15, respectively), the Company s profitability has increase due to demand for its product (Ferrochrome). H1FY16, the company has achieved gross sale of Crs and PAT is Crs. Financial details are in annexures (II & III). Rating Outlook: The outlook is expected to be stable for the current year Dec 2015

and ~75 per cent respectively. Its captive chrome ore mine covering an area of 64.

3 Going forward, the Company s ability to achieve projected sales turnover, maintaining gearing ratio and profitability margin after amalgamation of two units, efficiently managing working capital, appropriate hedging policy to mitigate forex will be the key rating sensitivities. Analyst Contact analyst@brickworkratings.com Relationship Contact bd@brickworkratings.com Phone Media Contact media@brickworkratings.com Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented as is without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons Dec 2015

com Phone Media Contact 1-860-425-2742 media@brickworkratings.

4 Balasore Alloys Limited Bank & Loan wise break up Annexure I Type of Facilities In Crs Allahabad Bank (6-3-13) SBH ( ) SBI (1-8-15) Cash Credit Fund Based EPC /FBD (Sublimit of CC) (2.18) (8.28) (32.00) Total (Long Term) ILC/FLC Non-Fund Clean Letter of Credit (Sublimit) - - (6.00) Based BG (14.22)* (0.50) 4.00 Total (Short Term) Total (Long & short) Balasore Alloys Limited Statement of Profit & Loss Annexure II Cr FY13 FY14 FY15 Result Type Audited Audited Audited Gross Sales Excise Duty/Sales Tax Net Sales Other Operating Income Total Operating Income Raw Material Consumed Change In Inventory (Increase)/Decrease Power and Fuel Expenses Employee Cost Manufacturing Expenses Cost of Goods Sold Selling, General and other Administrative expenses Operating Expenses OPBDIT Depreciation/Amortization/Impairment OPBIT Interest and Finance Charges OPBT Non-Operating Income(Expenses) PBT Extraordinary/Prior Period - Income(Expense) Provision for Taxes PAT(Continuing Operations) Dec 2015

50) 4.00 Total (Short Term) 14.22 15.35 14.00 Total (Long & short) 19.84 28.00 64.

5 Balasore Alloys Limited Balance Sheet Annexure III Cr FY13 FY14 FY15 Result Type Audited Audited Audited Liabilities Equity and Reserves Share capital Preference Share Capital/Quasi Equity Reserves and Surplus Non-current liabilities Long-Term Borrowings Deferred tax Liabilities (Net) Long-Term Provisions Current liabilities Short-Term Borrowings Current Portion Of Long Term Debt Trade Payables Other Current Liabilities Short-Term Provisions Total Liabilities ASSETS Non-current assets Net Fixed assets Capital Work-In-Progress Net Intangible assets Non-Current Investments Long Term Loans and Advances Other Non-Current Assets Current assets Inventories Trade Receivables < Six Months Cash and Cash Equivalents Short-Term Loans and Advances Other Current Assets Total Assets Dec 2015

28 Deferred tax Liabilities (Net) 13.95 16.40 10.40 Long-Term Provisions 9.20 7.82 10.85 Current liabilities 335.16 369.33 400.95 Short-Term Borrowings 68.57 73.24 58.

2014 FIRST QUARTER RESULTS CONFERENCE CALL. May 15th, 2014

2014 FIRST QUARTER RESULTS CONFERENCE CALL May 15th, 2014 DISCLAIMER This presentation has been prepared by Eurotech S.p.A.(or Eurotech ) and has to be read in conjunction with its oral presentation. The