MIRA INFORM REPORT

Report Date :

15.12.2007

IDENTIFICATION DETAILS

Name :	MCNALLY BHARAT ENGINEERING COMPANY LIMITED
Formerly Name:	PRABHUDAYAL RAMKRISHNA PRIVATE LIMITED
Registered Office :	4 Mangoe Lane, 5 & 7^th Floor, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.07.1961
Com. Reg. No.:	21-25121
CIN No.: [Company Identification No.]	U10102WB1961PTC025121
TAN No.: [Tax Deduction & Collection Account No.]	BLRM08976C/RCHM01882G
PAN No.: [Permanent Account No.]	AABCM9443R
Legal Form :	A public limited liability company. The company's shares are listed on the Stock Exchanges
Line of Business :	Manufacturing of Industrial Machinery and Equipment and also in Consultancy and Industrial Turnkey Projects.

RATING & COMMENTS

MIRA’s Rating :

A

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 3900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	4 Mangoe Lane, 5 & 7^th Floor, Kolkata – 700001, West Bengal
Tel. No.:	91-33-5550 0725-39, 2213 8905, 2240 0340 / 5016 / 65500725-39
Fax No.:	91-33-22480340
E-Mail :	mbecal@mbecl.co.in
Website :	http://www.mbecal.com, http://www.mcnallybharat.com
Corporate Office :	44, Park Street, Kolkata – 700 016, West Bengal
Tel. No.:	91-33-22478611 / 22403479 / 0221 / 3338 / 22800810 / 0811
Fax No.:	91-33-240 2086 / 2802707
E-Mail :	corporate@mcnallybharat.com, mbecal@mbecl.co.in
Factory 1 :	Production Division: P. O. Kumardhubi, Dist. Dhanbad, Jharkhand, Bihar – 828203, India Tel. No. 91-6540-223010 / 11/ 13 / 15 / 19 / 47 / 48 91-6540-298321 / 263265 Fax No. 91-6540-223024 Cable MEDOLARK KUMARDHUBI E Mail mbe@dte.vsnl.net.in mbekdb@rediffmail.com Roads Division 44, Park Street, Kolkata – 700 016, West Bengal Tel. No. : 91-33-22478611 / 22403479 / 0221 / 3338 / 22800810 / 0811 Fax No. : 91-33-22402086 / 22802707 E-Mail : corporate@mcnallybharat.com mbecal@mbecl.co.in Website http://www.mbecal.com http://www.mcnallybharat.com Cable MEDOLARK, KOLKATA Southern Division : Hoodi-Whitefield Road, P. O. Whitefield, Bangalore – 560 066, Karnataka Tel. No. 91-80-8452596 To 99 Fax No. 91-80-8452764 Cable MINIPRO WHITEFIELD E Mail mbl@mcnallyblr.com
Regional offices	Located at : Mumbai and New Delhi

DIRECTORS

Name :	Mr. V. K. Verma
Designation :	Director
Name :	Mr. A. Sankara Narayanan
Designation :	Director
Name :	Mr. S. K. Pasari
Designation :	Director
Name :	Mr. U. Parekh
Designation :	Director
Name :	Mr. C. K. Pasari
Designation :	Director
Name :	Mr. U. S. Chaturvedi
Designation :	Director
Name :	Mr. S. Singh
Designation :	Managing Director
Name :	Mr. A Khaitan
Designation :	Director
Date of Appointment :	31.10.2006
Name :	Mr. S .R Das Gupta
Designation :	Director
Date of Appointment :	21.06.2006

KEY EXECUTIVES

Name :	Mr. D. Chatterjee
Designation :	Company Secretary
Name :	Mr. D. Khaitan
Designation :	Chairman
Name :	Mr. S. P. Singhi
Designation :	Vice Chairman

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Resident Indian		4534744
Domestic Companies		11313228
NRI		3051364
Foreign Companies		----
Mutual Fund		2984460
Financial Institutions		----
Bank ( non – Nationalized)		600
Directors and relatives		37887
FII		3055526
Insurance		1801891
	Total	26779700

BUSINESS DETAILS

Line of Business :	Manufacturing of Industrial Machinery and Equipment and also in Consultancy and Industrial Turnkey Projects.
Products :	v Material Handling and Conveying Plant / Machinery v Crushing and Screening Plant / Machinery / Spares v Ball Mills - Plant / Machinery / Spares
Product Description :	v Turnkey project in Bulk Material Handling v Turnkey Projects in mineral Benefication v Manufacture and sale of equipments for such projects

PRODUCTION STATUS as on 31.03.2007:-

a) Installed Capacity of plant at Kumardhubi
i) Coal Washing Plant of 300 Tons per hour capacity	Two Plant per annum
ii) Coal Washing Plant, Materials Handling and Conveying System, Thermal Power Plant on Coal Handling System, Rail Wagon, Haulages, Retarders, Unloaders and Loaders, Wagon Tipplers, Rotary Discharge Machines, Automatic Sampling, Primary, Secondary Crushing and Screening of Bulk Materials, Pump and Centrifugal and Valves, Feeders and Gates, Bins, Hoppers, Chutes, Gears, Pulleys, Sprockets, Screens and Screen Plates, Dryers, Centrifugal and Thermal Coal Cleaners, Conveyor Chain Drives, Coal Crushing, Breaking, Screening and Conveying System, Structural Steel Work, Engineering, Fabrication and Erection. Port and Yard Handling Equipment Open	20000 Tonnes per annum
Cast Mining Machinery	3000 MT
Steel Plant Equipment	5000 MT
Sinter Plant	1000 MT
iii) Cement Mill Machinery	Two Plants of 3000 Tonnes and above per day each
iv) Lime Recovery Plant, Lime Burning Plant, Coke Calcining Plant, Phosphate Ore Nodulizing Plant, Lightweight Aggregate Plant, Magnesite Calcining to Periclase for Refractory Industry, Carbon Paste, Green Anode – Bath Handling, Carbon Recycling, Alumina Handling Plant, Special Coke Plant, Pelletizing Fine Materials, Rock Crushing and Screening, Pneumatic Handling System, Complete Line of Kennedy Van Saun Machinery such as Crushers and Kilns which are components of the above plants.	Nine Plants per annum
v) Mineral Beneficiation and Treatment Plants with all associated equipments like, grinding mills, Floatation Ceils, Thinners, Pumps, Filters etc.	3 plants of 60000 TPD p.a
vi) Ash handling/Pneumatic handling Plants, Equipments like Transporter Vessel, Valves, Pressure Vessels, Chemical Plants, such as avaporation and Bye products with associate items like Pressure Vessels, utilities, etc.	4 plants of 60 MT per hour capacity
vii) Spare Parts, Jobing works, Water Treatment. Transport and Distribution	---

B ) Installed Capacity of Projects Division	Installed capacity
Engineering, Procurement and Construction Jobs
Coal Handling, Material Handling, Crushing and Conveying Systems, etc.	Nos	10
Metallurgical and Mineral Process Plants for Aluminium, Copper, Zinc, Iron Ore etc. including coal washeries	Nos	8
Ash Handling Plants	Nos	12
Water Management'Systems	Nos	6
Port Handling Equipment and Stockyard Machinery	Nos	30
Structural Fabrication	MT	30000

Sales and production for the year ended 31.03.2007:	Production	Sale
Metallurgical Machinery	Quantity M.T.	Qty MT / Nos.	Amt Rs. ‘000’
a) Kiln and Cooler Plant/ Machinery/Spares	147	147	38889
b) Crushing and Screening Plant/ Machinery/Spares	122	122	26224
c) Feeders and Gates Machinery/Spares	106	106	22059
d) Ball Mill-Machinery/Spares	49	49	39869
e) Structural Steel Work, Engineering, Fabrication and Erection	94	94	14246
f) Mineral Beneficiation Plant/Machinery/Spares	168 MT /4 Nos	168 MT / 4 Nos	562780
Material Handling and Conveying Plant/Machinery/Spares	239 MT /24 Nos	239 MT /24 Nos	3977199
Coal Washing Plant/Machinery/Spares	---	---	176
Cement Mill/Plant	29	29	2348
Road Construction Machinery/Spares	--	---	---
Pump and Spares	4960 Nos	4864 Nos (12 MT /5395 Nos)	55157
Road Construction	----	---	112649
Water Management System	3 nos	3 Nos	24147
Port Equipment	6 Nos	6 Nos	165467
Thickener, Floatation cells and spares	1187 Nos	1185 Nos	105135
	954 MT / 6184 Nos	954 MT /6086 Nos	5146345
Excise Duty	954 MT / 6184 Nos	954 MT / 6086 Nos	5020528

GENERAL INFORMATION

No. of Employees :

720

Bankers :

v Bank of India,

v State Bank of India,

Address: Mumbai – 400 021, Maharashtra, India

v Canara Bank

v United Bank of India

v UCO Bank

v Oriental Bank of Commerce

v Indian Overseas Bank

v Union Bank of India

v ICICI Bank Limited

v ING Vysya Bank Limited

v Axis Bank

v Karur Vysya Bank

v ANZ Grindlays Bank Limited

Address: Kolkata – 700 001, West Bengal, India

Facilities :

Secured Loans	31.03.2007	31.03.2006
From Banks:	(Rs. in millions)
Overdraft including Working Capital Demand Loans (including interest accrued and due Rs.0.341 Millions; 2005-06 – Rs. 0.002 millions)	586.933	441.116
Term Loans
Include: i) Rs. 56.000 Millions is secured by a second mortgage and charge on the immovable and movable properties of the Kumardhubi unit of the Company and a guarantee from United Insurance Company Limited ii) Rs. 36.666 Millions is secured by way of subserviant charge on all fixed and current assets of the Co. and a guarantee from United India Insurance Company Limited (pending creation of charge) iii).5.059 millions secured by subservient charge on entire fixed assets of the company both present and future. Rs. 7.500 millions secured by a subservient charge on entire fixed assets of the company both present and future. (including interest accrued and due Rs. 0.096 millions; 2005-06 – Rs. – Nil)	105.322	315.529
Equipment Finance Loan (Secured by hypothecation of the tangible movable asset acquired out of these loans).	2.700	6.769
Car Loans (Secured by hypothecation of Motor Vehicles acquired out of these loans).	5.245	1.121
From Others:
Equipment Finance Loans (Secured by hypothecation of the tangible movable assets acquired out of these loans).	6.493	30.880
Total	706.693	795.415

UNSECURED LOAN	31.03.2007	31.03.2006
Short Term Loan from Others	(Rs. in millions)
From banks ( including interest accrued and due Rs. 0.628 millions , 2005-06 – Rs. Nil)	73.750	0.000
Other loans
Car loan	0.149	0.000
4.5% Foreign Currency Convertible Bond	392.310	0.000
Total	466.209	0.000

Banking Relations :

Satisfactory

Auditors :

Khaitan & Company

Chartered Accountant

Memberships:

Confederation of Indian Industry

Associates/Subsidiaries :

Ø Williamson Magor Group Companies

Ø G. P. Birla Group Companies

Ø Eriez MBI India Limited, Bangalore, Karnataka

SUBSIDIARIES

McNally Bangalore Industries Limited

Hoodi Whitefield Road, P. O. Whitefield, Bangalore – 560 056, Karnataka, India

Tel. No. 91-80-845 2596 / 2597 / 2598 / 2599

Fax No. 91-80-845 2764

E-Mail mbil.blr@smy.sprintrpg.ems.vsnl.net.in, mbl@mcnallyblr.com

Telegram : MINPRO WHITEFIELD

Ø Erotev – Waagner Biro (EWEB) Limited, Budapest

EWB-MBE Waagner Biro Limited

Ø EWB – MBE International Kornyezetvedelmi Kft, Hungary

(Formerly EWB – MBE International Environmental Limited)

Ø EWB –MBE International Kornyezetvedelmi Kft, Hungary

- EWB Kornyezetvedelmi Kft, Hungary

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity shares	Rs. 10/- each	Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26779700	Equity shares	Rs. 10/- each	Rs.267.797 millions

Note:

Of the above Shares:

i) 486100 Shares were allotted as fully paid-up pursuant to Contracts without payments being received in cash

ii) 1257930 Shares 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		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		267.797	264.618	197.832
2] Share Application Money		20.777	0.000	0.000
3] Reserves & Surplus		673.978	523.952	163.238
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		962.552	788.570	361.070
LOAN FUNDS
1] Secured Loans		706.693	795.415	604.480
2] Unsecured Loans		466.209	0.000	9.900
TOTAL BORROWING		1172.902	795.415	614.380
DEFERRED TAX LIABILITIES		7.022	11.016	11.571
TOTAL		2142.476	1595.001	987.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		451.962	527.405	425.695
Capital work-in-progress		113.689	1.717	8.137
INVESTMENT		46.137	32.094	12.219
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	188.169	118.023	135.037
	Sundry Debtors	2603.738	1895.741	1319.410
	Cash & Bank Balances	544.500	153.916	178.815
	Other Current Assets	0.000	0.000	0.019
	Loans & Advances	669.867	574.156	397.964
Total Current Assets		4006.274	2741.836	2031.245
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2431.502	1683.576	1454.206
	Provisions	44.084	24.475	36.069
Total Current Liabilities		2475.586	1708.051	1490.275
Net Current Assets		1530.688	1033.785	540.970
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2142.476	1595.001	987.021

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		5139.789	3347.055	2849.648
Other Income		56.227	5.067	0.000
Total Income		5196.016	3352.122	2849.648
Profit/(Loss) Before Tax		200.833	65.994	34.524
Provision for Taxation		25.787	13.464	8.271
Profit/(Loss) After Tax		175.046	52.530	26.253
Export Value		150.596	49.969	6.190
Import Value		81.109	119.206	91.295
Expenditures :
	Materials	3179.106	1973.727
	Outsourcing Expenses to outsiders for job Work Expenses	922.649	631.224
	Advance / Debts written off/ provision / liabilities written back	743.292	558.652	2815.124
	Loss on sale of fixed assets	11.269	6.674
	Interest and finance charges	31.408	0.970
	Depreciation & Amortization	17.219	27.285
	Other Expenditure	90.240	87.373
Total Expenditure		4995.183	3285.905	2815.124

QUARTERLY RESULTS

Year	30.09.2007	30.06.2007
Type	2^ndQuarter	1^st Quarter
Sales Turnover	1152.100	1108.500
Other Income	5.400	3.000
Total Income	1157.500	1111.500
Total Expenditure	1069.200	1017.400
Operating Profit	88.300	94.100
Interest	22.700	25.500
Gross Profit	65.600	68.600
Depreciation	4.800	5.000
Tax	0.800	19.800
Reported PAT	60.000	43.800

KEY RATIOS

Year	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	1.27	1.36	1.51
Long Term Debt-Equity Ratio	0.56	0.55	0.42
Current Ratio	1.27	1.18	1.04
TURNOVER RATIOS
Fixed Assets	7.16	4.77	4.60
Inventory	33.70	26.77	23.65
Debtors	2.29	2.11	2.58
Interest Cover Ratio	2.08	1.44	1.30
Operating Profit Margin(%)	7.01	7.17	5.92
Profit Before Interest And Tax Margin(%)	6.68	6.36	5.14
Cash Profit Margin(%)	3.35	2.36	1.67
Adjusted Net Profit Margin(%)	3.02	1.55	0.89
Return On Capital Employed(%)	19.57	17.60	17.63
Return On Net Worth(%)	20.06	10.10	7.69

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORTS:

HIGHLIGHTS

The key highlights of the operations for the £ financial year 2006-07 over the previous year are:

· Total Income increased by 55%

· Earnings before Interest Depreciation and Taxes increased by 71%

· Profit before Taxes increased by 204%

· Earnings per Share increased by 192%

The company has also participated in a large number of tenders in RINL and SAILIISCO plant at Burnpur and hope to be successful in some of these tenders.

PRODUCTS DIVISION

MANUFACTURING

During the review period both Kumardhubi Works and Bangalore Works have been fully utilized and have achieved targeted results with respect to the order book, sales and operating profits. Products Division has initiated innovative actions to reduce delivery time for its products, more particularly for Stacker cum Bucket Wheel Reclaimer for Paradeep Port Trust and Neyveli Lignite Corporation, Gravity Roller Conveyor and Power Roller Conveyor for Vedanta. Kumardhubi Works continued to serve various industries with existing products range like Mill, Crushers, Screens. A few to name are TISCO, MECON/NLC, DEMPO, RAJLAKSHMI MINERALS, JINDAL STEEL and POWER LIMTED (JSPL), etc. During the review period Kumardhubi Works have restarted manufacturing of Pressure Vessels for Projects Division as well as for other customers. Bangalore Works also continued to report excellent results and have emerged as one of the major suppliers of Process Equipment like Thickener and Pumps. Record number of 24 Thickeners Floatation Cells and Spares were sold during the review

period. As a diversification during 2006-07, we also entered into tie-up with M/S. LAROX of Finland and Bangalore unit would be responsible for promoting sale of these Filter.

EXPORTS

During the review period both Kumardhubi and Bangalore Works have been executing orders for export market. To highlight the one 74.1 M long Apron Conveyor against orders received from SOLIOS, France. It may be noted that this is probably the largest Apron Conveyor in the world.

CAPACITY EXPANSION

Substantial expansion programme has been undertaken for both at Kumardhubi Works and Bangalore Works which are under implementation. Kumardhubi Works Unit II expansion, Phase I has been completed and the work is under progress for the Phase II.

In addition Kumardhubi Works is investing substantially in Machine Tools to augment the machining capability and would be adding up state of the art Machining centers for both Unit I and Unit II. Orders for these machine tools have already been placed and are expected to be in place by second quarter 2007. Bangalore Works have also undertaken expansion initiative and have procured 4 acres of land for constructing a new workshop. Projects Division has already expanded its resource in terms of Engineering and Project execution capabilities to attain annual turnover of Rs. 15000.000 millions. EWB - MBE INTERNATIONAL KORNYEZETVEDELMI KFT EWB LIMITED The performance of the subsidiaries during the year is satisfactory. The unit has a healthy order book position. The Company continues to receive valuable technical support in Dry Ash Handling Technology which is used in power projects.

PROJECT FUNDING

During the year under review, the Company issued 4.5% Foreign Currency Convertible Bond worth US$ 10 million, which is convertible at Rs.143/- per share at the option of the bondholders, within the tenure of the bonds. Out of the above issue an amount of US$ 1 million have since been converted by the bondholders. The fund is being utilized for meeting the ongoing capital expenditures.

MANAGEMENT DISCUSSION and ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

The economic survey of 2006-07 has estimated 9.2% growth rate for the 2006-07. The Union Budget 2007-08 forecasts the same growth level for the year 2007-08. Manufacturing sector with an estimated growth rate of 11.3% and construction activity with an estimated growth of 9.4% has been identified as two major growth drivers. Under the "Power for all by 2012" programme of Government of India, total capacity addition envisaged during 10th and 11th plan shall be 100000 MW and the planned expenditure in power sector is Rs.3526 billion which includes Rs.779 billion investment in Coal based Thermal Sector, where capacity expansion is targeted by 20,000 MW within 2012. The estimated investment during 2007- 12 in Steel Sector alone is Rs.820 billion, in Non-ferrous Metal the estimated investment is Rs.221 billion and in Coal, Lignite and other mining sectors the estimated investment has been estimated at Rs.145 billion. In Port Sector the estimated investment is Rs.558 billion during the period 2007-2012. Based on the above scenario, the estimated size of the total construction and manufacturing equipment shall be Rs.4.2 billion by the end of 2010. The amount spent on construction as a total percentage as to total GDP has increased to 6.12% in 2007 from 5.7% in 2001.

The Company operates as a major player in all the above sectors and is fully geared to take the benefit of growth opportunities which shall prevail in these sectors.

SEGMENTWISE OR PRODUCT WISE PERFORMANCE

The Company is engaged in turnkey projects in infrastructure and related manufacturing activities and therefore the question of segment-wise performance does not arise.

OUTLOOK

Considering the buoyant market situation and expected investment in infrastructure sector across the country, the Company expects strong double digit growth in future years. Effective steps have already been taken to mobilize resources to cater to the growth plan. The Company has already raised adequate funding and has fixed up access to funding for its future plans. The manufacturing capacity in its Plants at Kumardhubi and Bangalore has already been expanded to accommodate expanded activities. The Company has added adequate manpower across the line to handle to its growth.

FINANCIAL PERFORMANCE

During the year, the Company recorded commendable growth in its performance both in terms of sales and profitability. While the total income of the Company has grown up by 55%, the Profit Before Tax has gone up by 204% and earnings per share has up by 192%, i.e. from Rs.2.26 per share to Rs.6.60 per share. Based on the business scenario within the country and Company's expanded capability, the Company has set a higher benchmark of performance during the year 2007-08. The Board expects this growth trend, both in terms of profitability and sales, to be maintained in the coming years.

Fixed Assets:

· Land (Freehold And Leasehold),

· Buildings

· Plant and Machinery

· Vehicles,

· Furniture and Fixtures,

· Refrigerators and Air Conditioners,

· Office Equipment,

· Telephone Plant

· Cooking appliances

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.39.35
UK Pound	1	Rs. 80.36
Euro	1	Rs. 57.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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/normal.	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

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