MIRA INFORM REPORT

Report Date :

08.09.2007

IDENTIFICATION DETAILS

Name :	P & H JOY MINING EQUIPMENT INDIA LIMITED

Registered Office :	Mining Centre, 85/1, Topsia Road (South), Kolkata – 700 046, West Bengal

Country :	India

Date of Incorporation :	31.10.2006

Com. Reg. No.:	21-045761

CIN No.: [Company Identification No.]	U29241WB1988PTC045761

Legal Form :	Private Limited Liability Company

Line of Business :	To carry on the business of makers, designers, patentees, assemblers, manufacturers of and dealers and distributors of equipment, plant and machinery of every description and kind and in particular, mining and material handling including conveyors, armored, gate, belt or otherwise, ropeways, excavators, bulldozers, dumpers, cranes, crushers, drills, feeder breakers, tunneling equipments, washery equipments, cutters, electrical, communications and signaling equipment, cable and accessories, tools, tackles and implements required either in connection with the mining and material handling equipment or otherwise, drilling and exploration equipment, all hydraulic equipment required for the mining and material handling equipment or otherwise.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 150000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. 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/ Head Office :	Mining Centre, 85/1, Topsia Road (South), Kolkata – 700 046, West Bengal
Tel. No.:	91-33-23022300
Fax No.:	91-33-23022347
E-Mail :	contactjoy@joy.com, admin@phjoyindia.com
Website :	http://www.phjoyindia.com

Factory 1 :	1, Transport Deport Road, Kolkata – 700 088, West Bengal

Factory 2 :	Mining Centre, 85/1, Topsia Road (South), Kolkata-700046, West Bengal, India
E-Mail :	admin@phjoyindia.com

Branches :	Located at:- Falcon Crest Building, Flat 2B, Block 1, 2^nd Floor, Plot No. 74, Road No. 10, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Tel. No.:	91-40-23310189
E-Mail :	91-40-23310198

DIRECTORS

Name :	Mr. Nirmalendu Dutta
Designation :	Director
Address :	P-423, Block G, New Alipore, Kolkata – 700 053, West Bengal
Date of Birth/Age :	03.05.1938

Name :	Mr. David Arthur Johnson
Designation :	Director

Name :	Mr. Richard Gaunt
Designation :	Director

Name :	Mr. Dinabandhu Mondal
Designation :	Director

Name :	Mr. Peter Harding
Designation :	Director

Name :	Mr. Hanson Nils John
Designation :	Director
Address :	22.01.1942
Date of Birth/Age :	4015, West Canterbury Court, Mequon WI53092, USA
Date of Appointment :	25.04.2005

Name :	Mr. Readinger E Mark
Designation :	Director
Address :	2128E Lafayette Place, Milwaukee WI53202, USA
Date of Birth/Age :	04.03.1953
Date of Appointment :	25.04.2005

Name :	Mr. Sutherlin W. Michael
Designation :	Director
Address :	06.12.1946
Date of Birth/Age :	601, East Drive, Sewickley PA 15143, Sewickley PA 15143, USA
Date of Appointment :	25.04.2005

Name :	Mr. Asit Kumar Das
Designation :	Director
Address :	10/2, Tanti Para Lane, Santragachi, Howrah-711104, West Bengal, India
Date of Birth/Age :	17.11.1957
Date of Appointment :	25.04.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Joy Mining Machinery Limited	49993
Mr. Dutta Nirmalendu	1
Mr. Dutta Chhanda	2
Mr. Pushpendu Sundar Mukherjee	1
Mr. Dutta Indrani	1
Mr. Kunnaruvath Pavitharan	1
Ms. Monica Mukhirjee	1

BUSINESS DETAILS

Line of Business :	To carry on the business of makers, designers, patentees, assemblers, manufacturers of and dealers and distributors of equipment, plant and machinery of every description and kind and in particular, mining and material handling including conveyors, armored, gate, belt or otherwise, ropeways, excavators, bulldozers, dumpers, cranes, crushers, drills, feeder breakers, tunneling equipments, washery equipments, cutters, electrical, communications and signaling equipment, cable and accessories, tools, tackles and implements required either in connection with the mining and material handling equipment or otherwise, drilling and exploration equipment, all hydraulic equipment required for the mining and material handling equipment or otherwise.

Products :	Its’ product range includes:- · Material Handling Equipments · Belt Conveyors · Mining Machinery. · Shuttle Cars · Battery Haulers · FCT · CHS · Multibolter · HFX Roofbolter · WASP · Mongoose · Wombat · Complete Longwall Systems · Roof Support · AFC Systems · Stageloader · Continuous Miners · IMM · Miner Bolters · Shearers · Crushers · Satellite Bolters It purchases against. It sells against. ·

Brand Names :	“Joy”

Terms :
Selling :	Contract, L/C or Credit terms

Purchasing :	Contract, L/C or Credit terms

GENERAL INFORMATION

Suppliers :	Its’ major supplier is:- · Longwell Rope Systems Limited, UK

Customers :	Its’ major customers include manufacturers and government bodies. Its’ major customer are:- · Coal India Limited & its’ Subsidiaries

Bankers :	Standard Chartered Bank, Shakespeare Sarani Branch, 32-A, Kolkata – 700 071, West Bengal Account No.: 337-0-500675-3 ABN Amro Bank N.V., I.T.C. Centre, 5^th Floor, 4, Russel Street, Kolkata-700071


Banking Relations :	Satisfactory

Auditors :
Name :	S R Batliboi and Company, Chartered Accountant
Address :	22, Camac Street, Block – C, 3^rd Floor, Kolkata – 700 016, West Bengal
Tel No.:	91-33-22811224
Fax No. :	91-33-22817750

Parent Company :	· Joy Mining Machinery Limited, United Kingdom · Pennsylvania

Associates/Subsidiaries :	· Project Monitor

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.10.2006	31.10.2005
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		74.835	57.463
4] (Accumulated Losses)		0.000	0.000
NETWORTH		75.335	57.963
LOAN FUNDS
1] Secured Loans		27.364	27.348
2] Unsecured Loans		1.020	0.000
TOTAL BORROWING		28.384	27.348
DEFERRED TAX LIABILITIES		0.000	0.000

TOTAL		103.719	85.311

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		17.525	5.302
Capital work-in-progress		0.146	0.000

INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.463

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.377	33.887
	Sundry Debtors	61.384	44.677
	Cash & Bank Balances	33.298	19.737
	Other Current Assets	0.252	0.156
	Loans & Advances	10.671	11.087
Total Current Assets		148.982	109.544
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	54.194	27.906
	Provisions	8.740	2.092
Total Current Liabilities		62.934	29.998
Net Current Assets		86.048	79.546

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		103.719	85.311

PROFIT & LOSS ACCOUNT

PARTICULARS	31.10.2006	31.10.2005
Total Income	176.229	0.000

Profit/(Loss) Before Tax	31.753	0.000
Provision for Taxation	14.381	0.000
Profit/(Loss) After Tax	17.372	0.000

Earnings in Foreign Currency :
Sales	67.594	57.079
Resource Utilization	9.180	5.055
Commission	0.628	0.439
Total Earnings	77.402	62.573

Total Imports	56.576	35.117

Total Expenditure	144.476	0.000

KEY RATIOS

PARTICULARS		31.10.2006	31.10.2005
PAT / Total Income	(%)	9.85	---

Net Profit Margin (PBT/Sales)	(%)	18.01	--

Return on Total Assets (PBT/Total Assets}	(%)	19.07	--

Return on Investment (ROI) (PBT/Networth)		0.42	--

Debt Equity Ratio (Total Liability/Networth)		1.21	0.98

Current Ratio (Current Asset/Current Liability)		2.36	3.65

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company

JOY MINING MACHINERY (INDIA) LIMITED

Presented By

ABN Amro Bank N.V.

I.T.C. Centre, 5^th Floor,

Kolkata-700071

1) Date and description of instrument creating the change

Hypothecation agreement for stocks dated 23.11.1998 and hypothecation agreement faor Book debts dated 23.11.1998

All th eabove agreements executed by Joy Mining Machinery (India) limited (the borrower) in fvaour of ABN Amro Bnk N.V.4, Russel Street, Kolkata-700071 (the Bank)

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

Rs.6 millions

The limits are as faollows :

Overdraft : Rs.3.500 millions

Guarantee : Rs.2.500 millions

Total : Rs.6.000 millions

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

The borrower bereby hypothecates to and charge sin favour of the Bank by way of rfirst charge all the goods, cstocks of Raew Materials, STP, Finished Goods and all otrher tangible movabelk properties of the borrower sucha s raw materials, stocks, spars, semi finished and ffinishecd goods, good sin process of amnfuacture and all goods manufactured therefrom belonging totrhe Borrower which now are or hereinafter from time to time dueing the sunsistance if the secyrity hereby created be brought in or store din or anour the Borrower’s factories, premises, warejouses and godowns including ay sucjh goods in thecourse of transit or dlivery.

And

All the oressent and future book dbts if the borrower and all outstanding, moneies , receivabels, claims and other dies whtsoever as security for the total credit facilities as sanctioned by the Bank.

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

The Borrower shall oa interest/commission in the following manner :

Facility

Interest/ Commission

Overdraft

PLR+ 1% + Applicable interest Tax.

Margin 25%

Guarantee

2% p.a.

Margin 25%

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

ABN Amro Bank N.V.

I.T.C. Centre, 5^th Floor

4, Russel Street,

Kolkata-700071

6) Date and brief description of instrument modifying the charge

N.A.

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.

N.A.

HISTORY

Subject was incorporated on 16th December, 1988 at Kolkata in West Bengal under the name and style of Gullcik Equipment Limited having Company Registration Number 45761. The name of the company was changed to Joy Mining Machinery (India) Limited w.e.f. 30^th August, 1996.

Again the name of the company was changed to the present w.e.f. 23^rd May, 2003.

Milestone

Year	Achievement
1919	Joy Machine company was incorporated
1919	Joseph Joy receives patent for mechanical loader
1920	First 4BU Loader produced
1924	Manufacturing plant moved to current location in Franking, PA
1938	First Shuttle Cars Model ZED-ID shipped
1948	First continuous miner model 3JCM shipped
1969	10SC Grindlays Bank Limited Shuttle car introduced to the market
1971	10,000^th shuttle car shipped
1972	First continuous miners model 12CM and 14Cm Shipped
1975	First longwall Shearer shipped
1985	1,000 IZCM continuous miner shipped
1986	First 4LS longwall shearer shipped
1990	First 6LS longwall shearer shipped
1994	Joy becomes affiliated with Harnischfeger Industries, Inc.
1995	Harnischfeger merges longwall international’s operations into Joy.
1998	Joy acquires CRAM Australia (Bolting Products)
2000	Two New Continuous Miners and Multibolter introduced

BUSINESS

Subject is engaged in the business as Manufacturer, Developer, Distributor and Service provider of underground Mining Machinery for the extraction of Coal and other Bedded materials.

Its’ production is processed by Third Party.

Character- Inventor-Reformer

Joseph Francis Joy was born September 13, 1883, in the small mining town of Cumberland, Maryland. This was a time when hard work, practical intelligence and thrift were needed to exist.

This was hard, dangerous work for strong men, let alone a young boy. While lying on his side soaked in mine water, for long hours as he labored, this bright young man visualized a "better way" to do the work.

Determined to learn and blessed with a precocious ability to persuade others, Joy won the favor of his sisters. They gathered and sold chestnuts to assist his struggling family in their efforts to finance a correspondence course for him in mechanical engineering. On his 20th birthday, the rare combination of his working knowledge, fortitude and specialized education, Joy produced his first sketch of a unique digging and loading device. He proudly shared his idea with a close friend who later provided convincing evidence of Joy's invention of a mechanical loader.

His work in the mines continued where he held every job from pumper to general superintendent. All during this time, Joe Joy attempted to convince others of his mechanical loading device invention. He circulated his drawing trying to persuade various mining companies to help him build his gathering arm loading machine. This marked the beginning of an uphill struggle to win his first of a total of 190 patents in his name.

Joseph F. Joy's accomplishments are as remarkable as his tenacious nature and aspiring ambition. In 1913, at age of 30, Joe took a lower paying job in exchange for the opportunity to work on the development of his machine. He was hired as an engineer for Jeffery Manufacturing Company where he spent his days in Pocahontas, Virginia, as a team member developing cutting and loading equipment which included the model 34A, 37A and 38A machines. At night, he continued to develop his gathering arm loader which he eventually presented to Jeffery management. He tried to sell Jeffery the rights to his machine, but his offer was declined because his employer believed that Joy's invention was not his own. They believed the machine already had been invented by a man named E.C. Morgan in 1910.

The machine proved to be so successful that Jeffery Manufacturing Company tried to claim rights to Joe Joy's invention. This resulted in Joy leaving his position with Jeffery Manufacturing and ultimately led to a patent lawsuit (which Joy successfully won in 1924). He then moved his family to Belle Vernon, Pennsylvania and with his patent in hand, went to work as a consultant to the Pittsburgh Coal Company.

Joy built five similar machines while working for the Pittsburgh Coal Company, all of which were track mounted. Donaldson, while pleased with the progress of the machine, suggested placing it on crawlers to increase its flexibility. However, initial trials seemed unsuccessful and the crawler project was terminated.

Joe Joy viewed this project termination as simply another challenge and believed that he could develop a successful crawler. He also wanted to organize his own company to manufacture and sell his machines to the mines. In one of Joy's final consulting sessions with Pittsburgh Coal, Donaldson pointed out the importance of business capital. With a fond regard for Joy, Mr. Donaldson sent him to visit the office of Pittsburgh Coal Company's legal counsel for assistance, and Joy began to organize his business.

Joy machinery established

The first model JOY 4B sold for $2,800 in September, 1922, to the D. J. Kennedy Company which sold coal, bricks and building supplies. Soon the loaders were successfully operating in West Virginia, Illinois and Saskatchewan, Canada.

By 1923, Joy was looking for a place to call his own; close to a progressive and productive mining area. The site he chose was located in Evansville, Indiana. The model 4A, 4BU and 5BU ("U" referring to its underground application) were developed and manufactured at Joy's first commercial assembly plant in Evansville. One hundred eighty-four 4BU's were sold as the first commercial loading machines of their kind. The 5BU, however, was truly the forerunner of the modern loader, and the first with an articulated conveyor tail section. The first 5BU was manufactured in February, 1923 and installed in what is known today as Freeman Coal's Orient Number 1 Mine in West Frankfurt, Illinois.

Joy moves to Franklin, Pennsylvania

Financial difficulties related to rapid growth overwhelmed Joy. He continued to subcontract machines to the Charleroi Iron Works since the Evansville plant was simply too small for continued development of the 4BU and 5BU machines. Joy was unable to obtain a lease on a larger Evansville area plant. Joe Joy approached the Cobern Machine Tool Company of Cleveland, Ohio for help and they responded with an agreement to refinance Joy for $106,000 in stock and $19,000 in cash. The transaction included turning over the Cobern plant in Franklin, Pennsylvania to Joy Machine Company with "full ownership of building and lands". In early 1924, the Indiana operation moved to Franklin. At that time, West Virginia and Pennsylvania coal fields were in rapid development and there appeared to be excellent potential for loaders. The Franklin location was also near other desirable raw materials and steel foundries.

Operations began on March 1, 1924, and the Franklin plant became the first to bear Joy's name. One transplanted employee said, "They came here by car in April of that year and all you could see was hills. My mother took one look at the hills and said that she was taking the next train home!" For approximately 50 Hoosiers from Indiana, the steep hills of Pennsylvania had become a new home.

One hundred eighty-six loading machines were produced from the end of March until December 1, 1924 - all successfully incorporating "field proven" Joy developments. However, financial difficulties plagued the operation and payroll was progressively difficult to meet. At the same time union leader, John L. Lewis called a strike in the bituminous and anthracite coal fields. The effect on Joy's market was disastrous. Fifty machines in production in the plant were held up by creditors and on April 2, 1925, Joe Joy resigned as president, while a committee of creditors took steps to pay off a half-million dollars of debt.

Resigning from his own company was a major blow to Joe Joy. A photo from his private family album reflects his sentiments. The caption reads, "Life's labor lost - broke 1925". The photo also shows Joy dressed warmly for his new and dramatic project halfway around the world. Joseph F. Joy had become the Director of Mine Mechanization in the Donetz Basin in Russia (where it is interesting to note that a young miner who was named Nikita Khruschev claimed that he ran a Joy loader at about this time). For two years Joy, along with his American engineering associates and support personnel, courageously devoted themselves to the mechanization of Russian coal mines. However, Russia was now under Stalin's rule and the area was turning into a political hotbed. In 1927, fearing for the lives of his staff and himself, Joe commandeered a railroad locomotive and escaped into Poland.

When Joy returned to the United States, he pursued his life as an inventor, including working at the Bethlehem Steel Company in Pittsburgh, Pennsylvania on the design of conveyor systems. Subsequently, he was hired as Assistant Vice President of Engineering at the Marion Shovel Company in Ohio. In 1930, Joy founded and was president of the Joy Brothers Company where he developed a system of coal saws that could produce "block coal". Coal saw users at this time had an advantage in the domestic market until President Roosevelt set a floor price on slack coal of 75 cents a ton. This prompted Joy to sell the company to Sullivan Machinery Company, who asked him to remain as General Manager of the Mining Machinery Division in Claremont, New Hampshire. In a four-year period, he helped to create nine new cutting machines along with the development of a "saw loader", which was basically a primitive continuous miner.

Joy returned to Joy Manufacturing Company to assist them in another patent litigation against Jeffery Manufacturing (E. C. Morgan). As an engineering consultant in Franklin, Joe created the Joy Safety Coal Drill. Had today's mine safety regulations been in effect, the machine would have been an instant success.

Later, Joy was called to service with the Army as a senior ordinance engineer in charge of development for the Chief of Army Ordinance. Among other accomplishments, he developed a seal of rubber and bronze cuttings which greatly improved the recoiling mechanism of large guns. In 1944, Joy left the Army and returned to Pittsburgh.

For two years he worked as Vice President and General Manager of Warren Welding and Engineering Company of Ohio. There was never a shortage of work or opportunity for Joe Joy. Numerous mining machinery companies were trying to hire him as a consultant. But it was A. S. Knoizen, Executive Vice President of Joy Manufacturing, who played the key role in bringing Joy back to the company that kept his name after reorganization in 1928.

In 1946, Joy Manufacturing Company awarded Joe Joy a lifetime contract at $1000 a month, plus materials and expenses, to develop new equipment and methods for the mining industry. Joy moved to Brookside Farms in Pittsburgh where he lived until moving to Ft. Pierce, Florida in 1954. In both locations he had a well-equipped machine shop and designers working for him. Numerous people from Joy Manufacturing Company visited Joe to share information on his latest developments.

Profile

It’s founder, Mr. Joseph Francis Joy was born September 13, 1883, in the small mining town of Cumberland, Maryland, USA. At the early age of 12, as his father and brother before him, Joe Joy went to work at the nearby coal mine. He started as a slate picker, and by age 15 he was working underground as a face-miner using a pick and shovel. He would drill the face with a hand-held auger, charge the holes with dynamite to "shoot down" the coal and then hand-load it into small rail-mounted cars pulled by mules or ponies.

The first gathering arm loader was shipped to Pittsburgh Coal Company's Sommer Number 2 Mine on September 27, 1916. Joe Joy applied for a patent for this gathering arm loader, and continued to work on its testing and development underground. He was awarded a patent, in his name, for the machine in 1919.

On June 4, 1920, the first crawler-mounted JOY loader was manufactured at Traylor Engineering in Allentown, Pennsylvania. Greater mobility proved itself, delighted Joy and promoted more interest in his machine. A major machine order was subcontracted by Joy to Charleroi Iron Works in Charleroi, Pennsylvania.

Joseph F. Joy died in February of 1957. He accumulated an impressive 190 patents during his career. His major inventions were recognized as milestones in the history of underground mining mechanization. He had pioneered new concepts in hydraulics, modern control and power circuits, trackless mining equipment, efficient gearing and seal designs as well as dozens of other "firsts" in the industry. His contributions changed forever the way minerals are mined.

Subject operates from caption owned office premises of area admeasuring 800 sq.ft. Caption factory cum warehouse premises is also owned by the company.

Subject employs around 60 persons in its set up comprising of 10 persons in office, 40 persons in factory, 4 persons in sales office and 6 others.

Website Details :

Headquartered in Warrendale, Pennsylvania, Joy Mining Machinery employs 4,500 persons worldwide. Their Vision is to be the Leading Global Supplier of Underground Mining Systems and Services In Partnership with Their Customers to Enable Them to Consistently Produce at "The Lowest Cost Per Ton" Over the Lifecycle of the Equipment.

History :

Joseph Francis Joy was born September 13, 1883, in the small mining town of Cumberland, Maryland. This was a time when hard work, practical intelligence and thrift were needed to exist. At the early age of 12, as his father and brother before him, Joe Joy went to work at the nearby coal mine. He started as a slate picker, and by age 15 he was working underground as a face-miner using a pick and shovel. He would drill the face with a hand-held auger, charge the holes with dynamite to "shoot down" the coal and then hand-load it into small rail-mounted cars pulled by mules or ponies.

This was hard, dangerous work for strong men, let alone a young boy. While lying on his side soaked in mine water, for long hourrs as he labored, this bright young man visualized a "better way" to do the work.

Joseph F. Joy's accomplishments are as remarkable as his tenacious nature and aspiring ambition. In 1913, at age 30, Joe took a lower paying job in exchange for the opportunity to work on the development of his machine. He was hired as an engineer for Jeffery Manufacturing Company where he spent his days in Pocahontas, Virginia, as a team member developing cutting and loading equipment which included the model 34A, 37A and 38A machines. At night, he continued to develop his gathering arm loader which he eventually presented to Jeffery management. He tried to sell Jeffery the rights to his machine, but his offer was declined because his employer believed that Joy's invention was not his own. They believed the machine already had been invented by a man named E.C. Morgan in 1910.

Joe Joy was not easily dissuaded. He took his invention to senior officer, John A. Donaldson, at the Pittsburgh Coal Co. He demonstrated his model on Donaldson's desk using dry dog food as the loaded material to be conveyed. Donaldson was so impressed that he requested Jeffery to manufacture this machine. The first gathering arm loader was shipped to Pittsburgh Coal Company's Sommer Number 2 Mine on September 27, 1916. Joe Joy applied for a patent for this gathering arm loader, and continued to work on its testing and development underground. He was awarded a patent, in his name, for the machine in 1919.

Joy machinery established

Joy moves to Franklin, Pennsylvania

Operations began on March 1, 1924, and the Franklin plant became the first to bear Joy's name. One transplanted employee said, "We came here by car in April of that year and all you could see was hills. My mother took one look at the hills and said that she was taking the next train home!" For approximately 50 Hoosiers from Indiana, the steep hills of Pennsylvania had become a new home.

News

Joy Mining Machinery Supplying LW Systems

WARRENDALE, PA, October 2006 -

Joy Mining Machinery UK will be furnishing two complete state-of-the-art longwall mining systems to Powerfuel plc as the company reopens its Hatfield Colliery in Yorkshire, England.

The two longwall systems each consists of a JOY 7LS shearer, 772 ton (700 tonne) capacity hydraulic roof supports with Joy’s RS20s control system, and an armored face conveyor and stage loader, as well as ancillary equipment.

The Hatfield Colliery, located near Doncaster, was idled in 2004, and has been undergoing a program to develop its reserves and to construct a mine-mouth clean-coal power plant with the capacity of one gigawatt. This has been a joint venture with the Russian coal giant, Kuzbassrazrezugol (KRU) that, in March 2006, signed an agreement to acquire a 51% interest in Powerfuel.

This represents KRU’s first major direct international acquisition. The company, already an important exporter of coal to the United Kingdom, operates surface mines in the Kuznetsky coal basin (Kuzbass) in southwestern Siberia, and has coal reserves of about 2,200 million tons (2,000 million tonnes).

Prior to its delivery to the Hatfield Colliery, the first of the two longwall systems is scheduled to undergo compatibility trials in August 2007. The second longwall system will be delivered in 2008.

When the two longwall systems are fully operational, the mine is expected to produce about 2.2 million tons (2 million tonnes) of coal annually from the 10 foot (3 metre) Barnsley seam, primarily for delivery to power plants in Yorkshire and the Midlands.

Joy Mining Machinery, a subsidiary of Joy Global Inc., is a global leader in the development, manufacture, distribution and service of underground mining machinery for the extraction of coal and other bedded materials.

Joy Mining Machinery Awarded Order

WARRENDALE, PA October 2006 – Joy Mining Machinery signed a contract with Huainan Mining Industry (Group) Co. Ltd. for the supply of longwall equipment. The contract is for two JOY 7LS6 longwall shearers, along with spare parts and product services.

Huainan is a major coal producer in the Anhui Province, close to Shanghai; annually producing 34 million tons (30.8 million tonnes) of raw coal, with plans to increase production to 80 million tons (72.5 million tonnes) by 2010 with the introduction of high-efficiency mining equipment and the opening of six new coal mines presently under development.

With the opening of these mines, Huainan Mining Industry (Group) will double the number of coal mines it operates, from six to 12, and will be operating a total of 23 longwall faces. This, Joy said, represents future requirements for a variety of highly productive, efficient longwall mining equipment, such as the JOY 7LS2 and 7LS3 shearers for the extraction of medium thickness coal seams, and JOY continuous miner bolters for the development of longwall panels.

Joy has plans to open a sales and service office in Huainan to support this important and growing market for quality, high efficient and productive mining equipment.

The two Joy7LS6 shearers purchased in late September will be operating in Huainan’s Guqiao mine, one of the new mines now under development.

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.40.71
UK Pound	1	Rs.82.26
Euro	1	Rs.55.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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

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