MIRA INFORM REPORT

Report Date :

20.08.2007

IDENTIFICATION DETAILS

Name :	CETHAR VESSELS (PRIVATE) LIMITED
Registered Office :	No. 4, Dindugal Road, Tiruchirapalli 620 001, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	09.11.1981
Com. Reg. No.:	9067
CIN No.: [Company Identification No.]	U28991TN1981PTC009067
TAN No.: [Tax Deduction & Collection Account No.]	CHEC05058E
PAN No.: [Permanent Account No.]	AAACC2721M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of FBC Boilers and Steam Generating Accessories.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 7545184
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having excellent track records. Fundamentals are strong and healthy. Financial positions is good. Payments are always correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be considered as a promising business partner in medium to long-run.

LOCATIONS

Registered Office :	No. 4, Dindigul Road, Tiruchurapalli 620 001, Tamilnadu, India
Tel. No.:	91-431-2482452 / 53 / 54/ 2461038 / 039 / 040
Fax No.:	91-431-2481079 / 2464301
E-Mail :	try_cvltry@sancharnet.com finance@ethar.com cethar@md3.vsnl.net.in cvplmarketing@eth.net
Website :	http://www.cethar.com
Head Office :	Trichy
Marketing Office :	² Delhi ² Ahmedabad ² Indore ² Raipur ² Kolkatta ² Secunderabad ² Singapre
Factory :	² SF 9/1 Kumaramangalam Village, Mathur – 622 515, Pudukottai Dist., Tamilnadu, INDIA ² SF 21/10 and 21/98 Rasipuram Road, Mathur – 622 515, Pudukottai, Tamilnadu, INDIA ² SF 113/2 Tiruchi Madurai Main Road, Vaduga Patti Village, Viralimalai, Pudukottai Dist. – 621 316, Tamilnadu, INDIA ² SF 132 and 133 Mathur Industrial Estate, Post Mathur – 622 515, Pudukottai Dist., Tamilnadu, INDIA ² SF 256 Peramangalam Village, Thuraiyur Taluk, Tiruchirapalli Dist. – 621 006, Tamilnadu, INDIA

DIRECTORS

Name :	Mr. Mohanraju G N V
Designation :	Managing Director
Address :	2, Cethar Garden, Tiruchirapalli 620 021, Tamilnadu, India
Date of Birth/Age :	10.07.1948
Qualification :	B E (Mech)
Date of Appointment :	09.11.1981
Name :	Mr. Kandasamy Nagalapuram
Designation :	Director
Address :	19 and 20, Cethar Garden, K K Nagar, Tiruchirapalli, India
Date of Birth/Age :	07.04.1957
Date of Appointment :	12.04.2006
Name :	Mr. Subburaj Kandasamy
Designation :	Chairman
Address :	15, Cethar Garden, K K Nagar, Tiruchirapalli 620 021, Tamilnadu, India
Date of Birth/Age :	02.12.1949
Qualification :	B E (Mech)
Date of Appointment :	21.03.1988
Name :	Mr. Karuppa Ponnusamy
Designation :	Director
Address :	1591, Toursdale Drive, Easton 18045, P A, USA
Date of Birth/Age :	27.01.1949
Date of Appointment :	29.14.2006
Name :	Mr. Gopinath V Krishnakumar
Designation :	Director
Address :	23, Neelkamal Apartments, Adayar, Chennai 600 020, Tamilnadu, India
Date of Birth/Age :	15.07.1942
Date of Appointment :	29.04.2006
Name :	Mr. Krishnamoorthy A
Designation :	Director
Address :	20, Sarvamangala Nagar, Nanganallur, Chennai 600 061, Tamilnadu, India
Date of Birth/Age :	17.10.1944
Date of Appointment :	29.04.2006
Name :	Mr. Premraj M P
Designation :	Director
Address :	26, Begonia Walk, Singapore 805811
Date of Birth/Age :	10.05.1942
Date of Appointment :	29.04.2006
Name :	Mr. S. Navaneethakrishnan
Designation :	Director
Name :	Mr. PL Sundaram
Designation :	Director
Name :	Mr. N Chandrasekaran
Designation :	Director
Address :	2A, Milestone Apartments, 14, Sriram Nagar South Street, Alwarpet, Chennai 600 018, Tamilnadu, India
Date of Birth/Age :	23.04.1944
Date of Appointment :	04.05.2007
Other Directorship:	Name of the Company: EPT Engineering Services Private Limited CIN No.: U74210TN2005PTC055254 Name of the Company: Fortune Valley Agro Farms Private Limited CIN No.: U05001TN1995PTC030949 Name of the Company: Enmas Process Technologies Private Limited CIN No.: U4010TN1998PTC16124 Name of the Company: Enmas Dynetics Limited CIN No.: U74210TN1995PLC031887 Name of the Company: Hatsun Agro Product Limited CIN No.: L15499TN1986PLC012747 Name of the Company: Psts Heavy Lift And Shift Limited CIN No.: U29309TN1995PLC031089 Name of the Company: Cethar Energy Limited CIN No.: U40109TN2006PLC059441
Name :	Mr. R Thirunavukkarasu
Designation :	Joint Managing Director
Qualification :	M Tech
Name :	Mr. S Srinivasaragavan
Designation :	Director
Qualification :	M S (Energy Engg.) M Tech

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Mohanraju	2795
Mrs. Vimala	138850
Mr. Kanagaraj	39666
Mr. Ramasamy	7582
Mr. Gunasekaran	10629
Mr. Sridhar	16462
Mr. Pothiraj	24470
Mr. Subburaj	102223
Mr. Elango	1691
Mr. Kumar K Seshan	16971
Mr. Vijaya	1109
Mr. Baskaran	9033
Mrs. Deepa	9000
Mr. Kuppuraj	14866
Mr. Gunasekaran	430
Ms. Bharathi	847
Mr. Venkatesh	430
Mr. Raguraman	374
Mr. Mohan Jagat Ghosh	430
Mr. Kumar Pradipta Sinha	430
Mr. Kumar Venkatkrishna	376
Mr. Venkatkannan	430
Mr. Parthiban	376
Mr. Jayprakash	430
Mr. Raman	430
Mr. Sekar	429
Mr. Parikh Kirit	430
Mr. Rajaraman	430
Mrs. Sundari	5657
Mr. Shunmugham	100
Mr. Vijayalakshmi M	7000
Mr. Sivakumar M	9000
Mr. Sathishekumar M	9000
Mr. Saravanaperumal K S	833

Equity share breakup (percentage of total equity)

S. No.	Category	Percentage
1	Directors or relatives of director	52.90
2	Others	47.10
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of FBC Boilers and Steam Generating Accessories.

Products :

Ø Bubling Bed Combustion Boilers

Ø Waste Heat Recovery Boilers

Sponge iron waste heat boilers

Blast Furnance gas heat recovery boiler (under execution)

Gas turbine exhaust gas

Diesel engine exhaust gas

Coke oven gas (under execution)

Ø Travelling grate boilers

Ø Oil/Gas fired boilers

Ø CFBC (under execution)

Ø Water heat plant

Ø EPC

Ø Cooling Towers (under execution)

Item Code No. (ITC Code)	Product Description
352101000	Boilers

Exports :

Products :

Industrial Boilers

Countries :

Bangladesh, Nepal, Nigeria, Sri Lanka and Vietnam.

Imports :

Products :

Tubes & Pipes, BQ Plates and Bearings

Countries :

Germany, Japan and Singapore.

GENERAL INFORMATION

Customers :

Ø Bridge Stone ACC India Limited, Dhar, Madhya Pradesh

Ø Asian Paints (India) Limited, Cuddalore, Tamil Nadu

Ø Bihar Sponge Iron Limited, Bihar.

Ø Glaxo India Limited, Aligarh, Uttar Pradesh

Ø Grasim Industries Limited, Mavoor, Kerala.

Ø Hindustan Lever Limited, Orai, Dist., Jalaun, Uttar Pradesh

Ø Indian Oil Corporation Limited, Haldia, West Bengal

Ø Mitsubishi Heavy Industries Limited, Haldia, West Bengal

Ø Modi Rubbers Limited, Meerut, Uttar Pradesh

Ø Ranboxy Laboratories Limited, Dewas, Madhya Pradesh

Ø Smithkline Beecham Consumer Health Care, Rajamundry, Andhra Pradesh

Ø Binani Cement Limited, Rajasthan.

Ø Century Cement., Raipur.

Ø Diamond Cements., Damoh.

Ø Gujarat Ambuja Cements Limited, Rajasthan.

Ø Kesoram Cement., Basanth Nagar.

Ø Maihar Cement., Satna.

Ø Satna Cement Works., Satna.

Ø Vasavadatta Cement., Gulbarga.

Ø Maratha Cements., Chandrapur.

Ø Dalmia Cement., Tiruchirapalli

Ø ITC Agro Tech Limited, Secunderabad.

Ø Satyakala Power Project Pvt Limited, Krishna.

Ø Sudha Agro Oil & Chemical Ind. Limited, Hyderabad.

Ø Vijay Agro Products Limited, Vijayawada

Ø Gujarat Heavy Chemicals Limited, Gujarat.

Ø Shriram Vinyl & Chemical Industries, Kota.

Ø Tata Chemicals Limited, Mithapur.

Ø Vam Organic Chemicals Limited, Gajraula

Ø Trichy Distilleries & Chem Limited,Trichy.

Ø Pioneer Distrilleries Limited, Nandad.

Ø Southtseas Distilleries Breweries Pvt. Limited, Thane.

Ø United Distilleries Limited,Gopalganj.

Ø Sona Distilleries., Alwar

Ø Ashok Paper Mills Limited., Darbhanga.

Ø Century Pulp And Paper., Nainital.

Ø Coastal Papers Limited, East Godavari.

Ø Emami Paper Mills Limited., Balasore.

Ø Orient Paper Mills., Orissa.

Ø Rama Newsprint & Papers Limited, Surat.

Ø Shree Bhawani Paper Mills Limited., Rae Bareli.

Ø Sri Venkatesa Paper & Boards Limited, Madukulam.

Ø Sun Paper Mills Limited, Cheranmahadevi.

Ø Tamilnadu Newsprint & Papers Limited, Kaghithapuram.

Ø The Andhra Pradesh Paper Mills Limited, Rajahmundry.

Ø Servall Engg. Industries Limited, Vilampatti.

Ø Jamkhandi Sugars Limited, Bijapur.

Ø Rajashree Sugars & Chemicals Limited., Theni.

Ø Sri Bhogawati S.S.K Limited, Kolhapur.

Ø The Mysore Sugar Company Limited,Mandya.

Ø Unique Sugars Limited., Dhule.

Ø Monnet Power Limited, Chattisgarh.

Ø Aarthi Steels Limited, Ludhiana.

Ø Prakash Industries Limited, Champa.

Ø Raipur Alloys & Steels Limited, Chattisgarh.

Ø Sponge Iron India Limited, Khammam.

Ø Vandana Vidyut Limited, Bilaspur.

Ø Shah Alloys Limited, Ahmedabad.

Ø Hima Ispat PrivateLimited, Barbil.

Ø Bihar Sponge Iron Limited, Bihar.

Ø Chattisgarh Electricity Company Limited, Raipur.

Ø Heg Limited., Durg.

Ø Steel Authority of India., Salem.

Ø Harihar Power and Alloys PrivateLimited, Tiruchirapalli.

Ø Sree Rengaraaj ISPAT PrivateLimited, Erode.

Ø Jindal Vijayanagar Steel Limited, Bellary

Ø Garden Silk Mills.,Gujarat.

Ø Sailakshmi Industries Limited,Mysore.

Ø VXL India Limited., New Delhi.

Ø K.G.Denium Limited, Mettupalayam.

Ø Shri Renuga Textile., Theni.

Ø Century Pulp And Paper., Nainital.

Ø Coastal Papers Limited, East Godavari.

Ø Emami Paper Mills Limited., Balasore.

Ø Orient Paper Mills., Orissa.

Ø Rama Newsprint & Papers Limited, Surat.

Ø Shree Bhawani Paper Mills Limited., Rae Bareli.

Ø Sri Venkatesa Paper & Boards Limited, Madukulam.

Ø Sun Paper Mills Limited, Cheranmahadevi.

Ø Tamilnadu Newsprint & Papers Limited, Kaghithapuram.

Ø The Andhra Pradesh Paper Mills Limited, Rajahmundry.

Ø Servall Engg. Industries Limited, Vilampatti

Overseas Clients

Ø Fludor Benin, South Africa

Ø Ceylon Petroleum Corporation, Sri Lanka

Ø Bhrikuti Pulp & Paper, Nepal

Ø Agripesco CompanyLtd, South Vietnam

Ø Vink + Company, Germany

Ø Sun Seed Nigeria PLC (Zaria Project), Lagos

Ø Neoluxe Nepal Limited , Nepal

Ø North Bengal Grain Industries Ltd , Bangladesh

Ø Puja Soap & Household Prod. ( Private ) Ltd, Nepal

Ø Arihant Oils & Feeds Ltd , Vietnam

Ø River Vegetable Oil Company Limited , Nigeria

Ø North Bengal Grain Ind, Limited , Bangaladesh

Ø Industrial Sales & Service, Bangaladesh

Ø Kumar Metal Ind, Nigeria

Ø Sri Ram Sugar Mill, Nepal

Ø Aarthi Sopa & Chem Ind. ( Private ) Limited, Nepal

Ø Presscane Limited, Malawi

Ø Palm Energy SDN BHD, Malaysia

No. of Employees :

1,500

Bankers :

Ø Canara Bank

Ø The Lakshmi Vilas Bank Limited

Ø The Federal Bank

Ø ICICI Limited

Ø Consortium Banks

Facilities :

Particulars	31.03.2006	31.03.2005
SECURED LOANS
TERM LOAN
Infrastructure Development Finance Company Limited
Expansion	220.000	--
Canara Bank
Wind Electric Generator Project	48.760	--
Canara Bank	--	4.272
The Lakshmi Vilas Bank Limited	5.795	2.062
The Fedral Bank	--	2.512
	274.555	8.846
The ICICI Limited
Car Loan	2.188	1.568
Consortium Banks
Current Account	180.324	46.467
Bills Discounted	60.008	18.769
TOTAL	517.075	75.650

Working capital limits with Consortium Banks are secured by first charge on the company’s land, building. Plant and machinery except assets purchased under term loan from Federal Bank Limited, Canara Bank, The Lakshmi Vilas Bank Limited and IDFC by hypothecation of raw materials, stores, work – in – progress and are personally guaranteed by the Board of Directors and Pipelines and Process Equipments (Private) Limited

Banking Relations :	Good
Auditors :
Name :	L Pandurangan and Company Chartered Accountants
Address :	Plot No. 29, Vyasaraya Nagar, Srirangam, Trichy 620 006, Tamilnadu, India
Memberships :	Confederation of Indian Industry
Collaborators :	Abco Industries Inc., U.S.A.
Associates/Subsidiaries :	Ø Cethar Consultancy Services Private Limited Ø Cethar Consulting Engineers Private Limited Ø EPT Engineering Services Private Limited Ø Fortune Valley Agro Farms Private Limited Ø Enmas Process Technologies Private Limited Ø Enmas Dynetics Limited Ø Hatsun Agro Product Limited Ø Psts Heavy Lift And Shift Limited Ø Cethar Energy Limited Ø Cethar Industries Limited Ø Pipelines & Process Equipments (Private) Limited Ø Cethar Garments (Private) Limited Ø Agro Products India Ø K. S. & Company

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity shares	Rs. 100/- each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
426164	Equity shares	Rs 100/- each	Rs. 42.616 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		42.616	42.616	42.616
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1843.680	915.995	345.559
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1886.296	958.611	388.175
LOAN FUNDS
1] Secured Loans		1675.531	517.075	75.650
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1675.531	517.075	75.650
DEFERRED TAX LIABILITIES		11.173	9.890	0.166
TOTAL		3573.000	1485.576	463.991
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1234.501	448.325	85.593
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		169.774	0.576	0.576
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1814.901	1193.841	494.575
	Sundry Debtors	2434.154	1139.538	706.680
	Cash & Bank Balances	269.996	162.387	375.797
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1263.369	579.609	103.988
Total Current Assets		5782.420	3075.375	1681.040
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3129.736	2038.700	1303.218
	Provisions	483.959	0.000	0.000
Total Current Liabilities		3613.695	2038.700	1303.218
Net Current Assets		2168.725	1036.675	377.822
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3573.000	1485.576	463.991

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		10795.713	5689.252	3258.488
Other Income		60.985	35.059	26.733
Total Income		10856.698	5724.311	3285.221
Profit/(Loss) Before Tax		1444.343	898.558	401.464
Provision for Taxation		492.362	313.544	150.512
Profit/(Loss) After Tax		951.981	585.014	250.952
Expenditures :
	Cost of sales		3671.042	2260.635
	Manufacturing distraction and selling expenses		1124.576	605.128
	On term loans		5.579	2.716
	On working capital		0.726	0.380
	Depreciation		23.530	14.898
Total Expenditure		9412.355	4825.453	2883.757

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	8.76	10.21	7.63
Net Profit Margin (PBT/Sales)	(%)	13.37	15.79	12.32
Return on Total Assets (PBT/Total Assets}	(%)	20.58	25.50	22.72
Return on Investment (ROI) (PBT/Networth)		0.76	0.47	1.03
Debt Equity Ratio (Total Liability/Networth)		2.80	2.66	3.55
Current Ratio (Current Asset/Current Liability)		1.60	1.50	1.28

LOCAL AGENCY FURTHER INFORMATION

History

Incorporated in India, 320 km South of Chennai at Tiruchirappalli, in the Year 1981. Achieved a sales turnover of USD 76 million in 2004-2005. Started manufacturing activities in the year 1984. Present net worth of the company is USD 9 million. Commissioned over 800 boilers and 7 power plants.

Director’s Report

Financial Performance:

The directors are pleased to inform that the sales and profit before tax for the year under review has increased by 74.60% and 123.82% respectively compared to the previous year.

Performance and prospects:

Economic scenario

Provisional data presented in the union budget 06-07, has indicated that on estimated basis, GDP of the country for the year 2005-2006, will be recording 7 % growth and it is projected to reach a GDP growth of 8 % for the ensuring year. Agriculture registered a growth rate of 3% while manufacturing and services sectors continued to contribute for good growth rate. Industrial production recorded 8.8 % growth as against 8 % for last year. Inflation has been floating around 4 to 4.5 % and finally settled at 3.96%.

External sectors of the economy performed very well with export touching US$100.6bn, registering 25% growth YOY. Imports touched US$ 138.11 bn, an increase of 31.5% over last year’s figures resulting in trade deficit of US$ 39.6 bn. Rupee has been axcillating around 44 to US$ due to increased dollar demand and dollar premium has been around 1.28%. sensex breached 11000 for the first time FIIS and MFS coming as major buyers.

Prospects

Government of India and the state governments continue to lay emphasis on the development of infrastructure in the country, such as airports, roads, power generation and distribution etc. several policy announcements have been mde by the Government of India on power sector reforms including tax holiday for the power projects for any ten year within 15 years in respect of any projects completed before 2010.100% foreign equity has also been permitted in the power generation project. It is estimated that in the current five year plan period the capacity addition in power generation will be 50000mws.

The company with decades of long experience and expertise built up in manufacture and supply of boilders and equipments to the power project of varied capacities, is confident of reaching higher growth in the years to come by successfully garnering a major share in the emerging and potential market by reorienting its business strategies. At the beginning of the current year the company has orders on hand to the extent of Rs. 11448.200 millions.

The company continued to march on a high note by scaling new heights on all fronts. Amidst stiff competition and rising pries, the company could achieve higher turnover and was able to book order. The company a preferred supplier due to its quality, service and technical expertise. During the year to cater services in the global market, the company opened an office at Singapore and a new company was incorporated in USA to take advantage of the favorable market conditions and sustain the growth of the company, proactive resurgent actions are being taken for expansion to increase the capacity and capabilities.

Highlights:

The company has commissioned 27 MWe Power Plant at Birla Corporation Limited at Chanderia, Rajasthan.

The company has commissioned 27 MWe Capitive Power Plant at Birla Corporation Limited at Satna, Madhya Pradesh.

The company has commissioned 2 Nos. 125 TPH AFBC Boilers one at Dalmia Cement (Bharat) Limited, Dalmiapuram.

The company has commissioned 1 No. 110 TPH AFBC Boiler at SAL Steels Limited, Gandhidam, Gujarat and another at Aarti Steels Limited, Cuttack, Orrissa.

Other Acitvities:

Wind Mills

The Wind Mills have generated a total of 110.400 millions units out of which 37.200 millions units were sold and the balance was used in the units at Mathur, Viralimalai and Pullivalam.

The company has installed 1 No. 1.25 MW Wind Mill at Ukkirankottai Village, Tiruelveli District, Tamil Nadu to meet the power requirements of the company’s expansion projects.

Fixed Assets:

Ø Land

Ø Buildings

Ø Plant And Machinery

Ø Electronic Data Processing Equipment

Ø Furniture And Fixtures

Ø Car / Vehicles

Ø Capital Work In Progress

Name of the company

CETHAR VESSELS (PRIVATE) LIMITED

Presented By

DIRECTOR

1) Date and description of instrument creating the change

a) Agreement of cash credit / overdraft / demand loan

b) Agreement for inland letter of credit

Both Dated 15.07.2004

2) Amount secured by the charge/amount owing on the securities of charge

	Amount in Millions
Supply Bills Limit	6.000
ILC / FLC	12.000
Bank Guarantee	45.000
SBP	1.5000
Total	64.500

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

1. Hypothecation of all goods and documents of title to goods covered under the respective letter of credit.
2. Hypothecation of whole of the goods, produce, merchandise, finished goods, goods in transit and any other stocks mentioned in the stock statements brought into, stored or tobe stored in or about the borrower’s godowns and premises, book debts, receivables.
3. Hypothecation of assets, vehicles, machinery listed in the annexure to the form.

4) Gist of the terms and conditions and extent and operation of the charge.

For cash credit	14.75% p. a.
For bills discounting	14.75% p. a.
For D. Ds Purchase and discount	14.75%

5) Name and Address and description of the person entitled to the charge.

Federal Bank, Chinnakkadai Street, Tiruchirapalli 620 002

6) Date and brief description of instrument modifying the charge

Agreement for cash credit / overdraft / demand loan

Counter guarantee

Agreement for inland letter of credit

Agreement for negotiable instruments purchased / discounted

Link letter

All Dated 30.08.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

	Present limit Rs. In Millions	Revised limit Rs. In Millions
Supply Bills Purchase (SBP / BD) (CP Limit – submit to SBP – Rs. 1.500 millions)	6.000	7.500
ILC / FLC	22.500	64.000
Bank Guarantee	67.500	125.000
Total	96.000	196.500

Rate of Interest:

14% all the existing securities continue to hold good for the enhanced financial facilities

Additional security: paripassu first charge on fixed assets of the company comprising

Factory land building	Rs. 35.700 millions
Plant and machinery	Rs. 31.100 millions
Misc. fixed assets	Rs. 14.300 millions
Fixed deposits	Rs. 4.400 millions

Supply bills drawn on Government / Semi Government Departments/ Undertakings / Reputed JSC’s accompanies by receipted delivery challan.

As per website details:

Mr. K. SUBBURAJ

Chairman

A visionary with a mission

This the profile of a person, whose vision, the will power and the entrepreneurial skill, that has made CETHAR, a worthy contributor to the country’s power and energy needs. The word CETHAR was coined by this entrepreneur almost 25 years ago, as he had a dream of venturing into C-Chemical, E-Engineering, T-Textiles, H-Health Care, A-Agencies, and R for Reengineering. Well, today, C stands for Computers or Consultancy.

His flagship company subject, is now a leader in the manufacture of Boilers, the much-needed component for the power and energy sector. Starting with modest business, the satisfied Customer list of Cethar Vessels now covers the entire length and breadth of the country and even abroad. True to the acronym, Cethar has set their foot successfully into the Textiles, Energy (engineering) consultancy, Information Technology segments as well and new ventures in the other sectors are on the drawing board.

The group turnover is around Rs.6000.000 millions today and a target of Rs.13000.000 millions for the next financial year, is indeed achievable, as it seems now. However, the entrepreneur has a much wider vision, to do business of over Rs.45000.000 millions (USD 1 Billion) by the year 2011. He firmly believes that such achievements are not to the credit of an individual but made possible only by the collective team effort of the well qualified, well experiences and dedicated CETHAR team.

subject has their head office at Trichy, with regional offices in all the Metros and at other important cities/towns. Other group companies of subject are, Pipelines and Process Equipments (P) Limited, who work on the piping requirements for a boiler, Cethar Industries, a vertically integrated Knitted garment manufacturer, Cethar Consulting Engineers for Engineering Projects and Cethar Consultancy Services as an I.T Solutions provider. This first generation entrepreneur, whose dream now has made Cethar, a household name especially in South India, is Mr. K. Subburaj.

A simple and unassuming type, always approachable, Mr.K.Subburaj, is respected and revered by his colleagues for his sharp business acumen, and attention to details. A Mechanical Engineer from Thyagaraja College of Engineering, Madurai (Madras University), Mr. K. Subburaj started his career at ISRO Thumba and moved on to Bharat Heavy Electricals Limited, Trichy, where he got the hands-on experience in manufacturing, before his entrepreneurial desire, made him start his own venture (Pipelines India Limited) as a subcontractor to BHEL.

Mr.K.Subburaj, risked in investing in a new technology (as of 25 years ago) for Boilers when he started subject and this proved to be a correct decision as Cethar is now an acknowledged industry leader with their own technology unmatched by competitors. This profile would have to be enhanced almost continuously, as Mr.K.Subburaj’s achievements are also continuously growing, true to his entrepreneurial spirit.

Mr. G.N.V MOHANRAJU

Managing Director

G. N. V. Mohan Raju is the Managing Director of subject and promoter of N. V. Enterprises concerned with Thermal Power Plants. Before venturing into own group of Industries, he worked in Time-Aids India (P) Limited, ( a TTK Group Company). He was responsible for many planning production and development of components required for WESTCLOX Time pieces between 1969 and 1971. Later he joined BHEL, Tiruchirapalli and underwent many Technical and Management Trainings abroad. With series of such training programmes intensifying his indigeneous skills, he has been acclaimed for a record of commissioning 2 boilers within 18 months of commencing erection. He has made significant contributions to the Cethar group of Industries after quitting BHEL in 1981. He holds a B. E. Mechanical Engineering Degree from the University of Madras.

Mr. M. P. PREM RAJ

Director

Mr. Prem Raj, is a successful Engineer combined with a sharp business acumen that has made every business he has handled into huge profit making entities in Singapore, India and many other Far Eastern Countries.

With over FOUR Decades of rich experience, both in India and Internationally Prem Raj, is a name to reckon with in the Oil and Gas Industry. One of his several achievements has been to head an Organization that designs manufactures and Installs large Oil and Gas Platforms for major International Oil giants. The turnover of the organization based in Singapore increased to 800 Million Singapore Dollars (USD 500 M) during his leadership.

At Malaysia, where he headed a Joint Venture Organization, the turnover rose to 350 Million Ringits (USD 95 M) from a mere 28 Million Ringits (USD 7 M) in a matter of just three years, an increase by around 13 times.

Prior to moving to the Far East in 1980, Prem Raj worked with Bharat Heavy Electricals Limited India in various Senior Management positions. During this tenure, he was responsible for the transfer of technology for the manufacture of Nuclear Steam Generators from West Germany.. which could be considered as a major feather in the cap not only for Prem Raj personally but also for BHEL on the whole.

Manufacture of key components of Power Generation, be it, Drums, Headers, Pipelines, or Nuclear Steam Generators, Prem Raj had played an active role as the Production In-Charge at BHEL. Operation Planning and Control were also other responsibilities at BHEL.

The CETHAR group, a leader in the Power Generation Industry, is fortunate to benefit from such a vast experience of Prem Raj, as a Director. Prem Raj has been the guiding factor behind Cethar’s Venture in to the Far Eastern market.

Prem Raj has won a medal of commendation from the National Trade Union Congress Singapore and was also recognized as “WHO IS WHO OF SINGAPORE” (By the Publication – The Peak)

His career graph is illustrated below:

Executive Vice President – Sembcorp Marine and Offshore Engineering Singapore

Director Sembawang – Thailand

Director Sembawang Alswaget – Saudi Arabia

Director P.T.Gema Semb Brown Indonesia

Director Sime Sembcorp Engineering Malaysia

Director Chiwan Sembcorp Engineering China

Director Axes Technologies Singapore

Director Macrocomm Convergence, Singapore

Mr. V.K.GOPINATH

Director

Mr. V. K. Gopinath, an Electrical Engineering graduate from Regional Engineering College Warangal, started his career in BHEL Trichy in 1965 when he joined the Organization as a Graduate Apprentice. He had his initial training in Welding Engineering in Combustion Engineering, USA and ESAB, Sweden. . He had also undergone regular Management training in Premier Institutions in India and abroad. Sri. Gopinath was closely involved in all the stages of Expansion, Modernization, and Technology Development of High Pressuree Boiler plant.. After serving in various capacities in Plant Engineering, Manufacturing and Operations, he ultimately became the Chief Executive of BHEL, Trichy in-charge of the High Pressure Boiler Plant and the Seamless Steel Tube Plant in Trichy, Boiler Auxiliaries Plant in Ranipet, Piping Centre in Chennai and the Valves Plant in Goindwal, Punjab in 1998.

As the Executive Director of BHEL, Trichy Unit, he took the Organization to Numero Uno position among all the BHEL Units in terms of Turnover, Profits, Growth, Technology Development and Industrial Relations. . He has been largely instrumental for the success of Total Quality Management and Enterprise Resource Planning in BHEL Trichy. Sri. Gopinath has been honoured with the Kieth Heartly Award by Indian Institute of Welding for his contribution to welding He was in the Board of Governors of Bharatidasan Institute of Management for four years.. Sri, Gopinath’s special areas of interest included Rehabilitation Centre for Mentally challenged children – ARIVALAYAM, Environmental Care through massive Affoestation, Sports, Tamil Literature and nurturing of Professional Institutions.

Mr. PONNUSAMY GOUNDER

Director

Mr.Ponnu Gounder has over thirty years experience primarily as Performance Engineering Manager and Project Manager. He possesses a comprehensive knowledge of the requirements for the CFB Boiler engineering and successful execution of projects. He has worked on several CFB projects located in USA, Canada, Poland, Thailand, China and India. He has served in various capacities related to Boiler Performance and Proposals in BHEL, Trichy from 1971 to 1983. Later he joined New York University, New York as an Assistance Research Scientist, after which he served in Pyropower Corporation San Diego, CA.

From 1995 he has been actively involved as the Project Manager and Manager/CFB Projects for the present. He has been awarded eight patents related to CFB Boilers. He did pioneering work in the development of utility scale CFB boilers while working for Pyropower Corporation. In 1990 he was nominated for Ahistrom Corporation’s Prize (International) for Excellence in Engineering. He holds an MS degree from New York University, New York (1985) and BE (Hons) degree from University of Madras (1971).

Mr. A.KRISHNAMOORTHY

Director

Mr A. Krishnamoorthy is an M.A (Public Administration) and M.B.A with specialization in Financial and Personnel Management. In his four decades of Banking experience starting with a tenure in Reserve Bank of India, Mr A. Krishnamoorthy held several territorial and functional jurisdictions as senior executive in Andhra Bank (Govt of India undertaking) heading operational units at Chennai, Hyderabad and Mumbai and as General Manager incharge of Human Resurces Development, Credit and Priority sector advances.. He held the post as concurrent chairman of Banking services Recruitment Board of Andhra Pradesh appointed by Govt of India.

He was appointed by RBI as Chairman and Chief Executive officer of Lakshmi Vilas Bank ltd. which position he held till April 2005. His wide experience and knowledge in Banking,enabled him to land his expertise as member of various Advisory Committees of Indian Banks Association, Reserve Bank of India Banks and several development institutions of central and state governments and as Convener State Level Bankers Committee, Andhra Pradesh.

He has to his credit a lot of innovations like introducing credit card as a payment system and steering the activities of Self-Help Groups through Micro Finance. He has widely travelled and participated and presented papers at several International and National Seminars. He joined subject as Director on the Board in the backdrop of his illustrious career in Banking and Finance, to assist the company to convert its vision to reality with missionary zeal, strategic planning, labour welfare, employee motivation, customer origination, profit maximization, corporate governance of highest order and with an eye for social responsibility.

Mr. POTHIRAAJ

Director

Mr. N.K.Pothiraaj is a Mechanical Engineer from Thiagaraja College of Engineering, Madurai. He started his career as a Production Engineer in M/s. PIPELINES INDIA (P) LTD., in 1981. He is responsible for making the same a major sub-contractor of BHEL, Trichy, BHEL Piping Center, Chennai. As the Managing Director, he is the proud claimant of a Turnover hike from Rs. 8 lakhs to Rs. 400 lakhs in 20 years period. Later he joined Cethar Industries Limited, as President / Operations from April 2003 to March 2005, and revived and stabilized the operations Cethar Industries at Tirupur. He could be labeled as successful reviver of the industries he was incharge of. Currently, he is a Director, CV(P) Limited Looking after its Finance, BCC, Administrator and Expansion.

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 records 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. 41.57
UK Pound	1	Rs. 82.14
Euro	1	Rs. 55.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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