MIRA INFORM REPORT

Report Date :

20.12.2008

IDENTIFICATION DETAILS

Name :	THAKUR PRASAD SAO AND SONS PRIVATE LIMITED
Registered Office :	Avani Signature, 2nd Floor, 91A/1, Park Street, Kolkata – 700 016, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.12.1986
Com. Reg. No.:	21-41629
CIN No.: [Company Identification No.]	U10200WB1986PTC041629
TAN No.: [Tax Deduction & Collection Account No.]	CALT03015F
PAN No.: [Permanent Account No.]	AABCT9401G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Crushed Iron Ore.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 4494000
Status :	Good
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is well established and reputed company having fine track records. Financial position is good. Payments are reported as slow but correct. The company is doing well. It can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Alankar Apartments 1st floor, 220, Prince Anwar Shah Road, Kolkata – 700045, West Bengal, India
E-Mail :	tpsaoandsons@yahoo.com
Website :	http://tpsaoandsonsgroup.com
Admin Office :	334, Kumar Joda, Near T. V. Tower, Joda – 758034, Dist – Keonjhar, Orissa, India
Tel. No.:	91-6767 – 272363 / 272503
Corporate Office :	European Quarters, Near Gandhi Maidan, Chaibasa – 833 201,District Singhbhum West, Jharkhand, India

DIRECTORS

Name :	Mr. Ramesh Prasad Sao
Designation :	Managing Director
Address :	Ward No.10, Near Gandhi Maidan, Jamshedpur – 833 201, Jharkhand, India
Date of Birth/Age :	24.06.1942
Experience :	24 years in Mining Industry
Date of Appointment :	16.12.1986
Name :	Mr. Abhishek Sao
Designation :	Director
Address :	European Quarters, Near Gandhi Maidan, Chaibasa – 833 201,District Singhbhum West, Jharkhand, India
Date of Birth/Age :	26.08.1980
Experience :	7 years in Mining Industry
Date of Appointment :	20.08.2000
Name :	Mr. Rohit Sao
Designation :	Director
Address :	European Quarters, Near Gandhi Maidan, Chaibasa – 833 201,District Singhbhum West, Jharkhand, India
Date of Birth/Age :	31.07.1986
Experience :	4 years in Mining Administration
Date of Appointment :	15.12.2004
Name :	Mr. Romi Sao
Designation :	Director
Address :	European Quarters, Near Gandhi Maidan, Chaibasa – 833 201,District Singhbhum West, Jharkhand, India
Date of Birth/Age :	20.02.1984
Experience :	3 years in Mining Administration
Date of Appointment :	12.08.2003
Name :	Ms. Jayasree Sao
Designation :	Director
Address :	At European Quarters, Near Gandhi Maidan, Chaibasa – 833 201,District Singhbhum West, Jharkhand, India
Date of Birth/Age :	01.04.1949
Date of Appointment :	16.12.1986
Name :	Mr. Sajjan Kumar Naredi
Designation :	Director
Address :	Virdi Niwas, M-Road, Bistupur, Jamshedpur – 831 001, Jharkhand, India
Date of Birth/Age :	13.02.1961
Date of Appointment :	30.08.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.12.2007

Names of Shareholders	No. of Shares
Ramesh Prasad Sao	55048
Jayasree Sao	23881
Abhishek Sao	10331
Romi Sao	8280
Rohit Sao	6135
Sajjan Kumar Naredi	1
Total	103676

As on 15.12.2007

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Crushed Iron Ore.

Products :

Item Code No. (ITC Code)	NA
Product Description	Iron Ore
Item Code No. (ITC Code)	7203.10
Product Description	Sponge Iron

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Sponge Iron	M.T.	92500.00	36453.68
M.S. Ingot	M.T.	12000.00	7677.17

GENERAL INFORMATION

No. of Employees :

About 3000

Bankers :

Punjab National Bank, Chaibasa, West Singhbhum, Jharkhand.

Facilities :

Secured Loans :

	As on 31.03.2007 Rs. in Millions
From Banks Working Capital Loans	40.919
Term Loan (secured by way of hypothecation of Plant and Machinery and personal guarantee of Directors)	43.886
Vehicle Loans Vehicle Finance from various Banks and Financial Institution (secured by way of hypothecation of respective vehicle and guarantee of Directors)	1.263
Total	86.068

Unsecured Loans :

	As on 31.03.2007 Rs. in Millions
Guidance Commercial Private Limited	16.000
S.P. International Limited	8.000
Surinder Steel Ludhiana	1.000
Total	25.000

Banking Relations :	Satisfactory
Auditors :
Name :	Manav and Company Chartered Accountants
Address :	Suit No.204, 21, Hemant Basu Sarani, Kolkata – 700 001, West Bengal, India
Group of Companies :	Tulip Mines Private Limited (Crushing) CIN No.: U13209DL2004PTC124639 Registered Office: F – 572, Sarita Bihar, New Delhi – 110044. Corp. Office: European Quarters, Near Gandhi Maidan, Chaibasa - 833201, Dist:- Singhbhum West, Jharkhand Admin Office: 334, Kumar Joda, Near T. V. Tower, Joda – 758034, Dist – Keonjhar, Orissa. Bajrang Ispat Limited (Sponge Iron / Iron Furnace) Registered. Office: Naikinbahal , Kuarmunda, Rourkela, Dist – Sundergarg, Orrissa. Corp. Office: European Quarters, Near Gandhi Maidan, Chaibasa - 833201, Dist:- Singhbhum West, Jharkhand. Admin Office: NN – 8, Civil Township, Rourkela – 769004, Dist – Sundergarg, Orrissa. Manglam Ispat Limited (Sponge Iron Unit) Registered Office: D – 5, Civil Township, Rourkela – 769004, Dist – Sundergarg, Orrissa. Ph. No – 0661 – 2400634 / 2400684. Corp. Office: European Quarters, Near Gandhi Maidan, Chaibasa, 833201, Dist:- Singhbhum West, Jharkhand. Admin Office: D – 5, Civil Township, Rourkela – 769004, Dist – Sundergarg, Orrissa.
Associates/Subsidiaries :

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100840	Equity Shares	Rs.100/- each	Rs.10.084 millions

Out of the above 75630 shares have been allotted as bonus shares by capitalization of reserves in the C.Y. 50420 shares and had been allotted as bonus shares.

As on 15.12.2007

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
103677	Equity Shares	Rs.100/- each	Rs.10.368 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		10.084	5.042	2.031
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		888.721	146.471	8.536
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		898.805	151.513	10.567
LOAN FUNDS
1] Secured Loans		86.068	5.233	3.284
2] Unsecured Loans		25.000	0.000	0.249
TOTAL BORROWING		111.068	5.233	3.533
DEFERRED TAX LIABILITIES		27.229	2.953	0.108
Share to be allotted after merger order of H.C.		0.284	0.000	0.000
TOTAL		1037.386	159.699	14.208
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		342.267	48.281	5.285
Capital work-in-progress		9.644	0.000	0.000
INVESTMENT		63.672	96.350	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	98.315	8.487	7.888
	Sundry Debtors	121.385	5.792	0.402
	Cash & Bank Balances	910.895	217.794	27.501
	Other Current Assets	418.381	30.616	0.000
	Loans & Advances	93.657	25.447	19.838
Total Current Assets		1642.633	288.136	55.629
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	591.831	192.387	38.223
	Provisions	429.011	80.705	8.519
Total Current Liabilities		1020.842	273.092	46.742
Net Current Assets		621.791	15.044	8.887
MISCELLANEOUS EXPENSES		0.012	0.024	0.036
TOTAL		1037.386	159.699	14.208

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Sales Turnover & Other Income	3327.250	NA	NA
Total Income	3327.250	NA	NA
Profit/(Loss) Before Tax	1322.673	230.069	17.069
Provision for Taxation	440.995	77.800	6.249
Profit/(Loss) After Tax	881.678	152.269	10.820
Total Expenditure	2004.577	NA	NA

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	26.50	NA	NA
Net Profit Margin (PBT/Sales)	(%)	39.75	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	64.26	53.16	28.02
Return on Investment (ROI) (PBT/Networth)		1.47	1.52	1.62
Debt Equity Ratio (Total Liability/Networth)		1.26	1.84	4.76
Current Ratio (Current Asset/Current Liability)		1.61	1.06	1.19

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from Alankar Apartments 1st floor, 220, Prince Anwar Shah Road, Kolkata – 700045, West Bengal to the present address w.e.f. 05.05.2008.

Name of the company

THAKUR PRASAD SAO AND SONS PRIVATE LIMITED

Presented By

Mr. Sajjan Kumar Naredi, Director

1) Date and description of instrument creating the change

Dated 27.09.2003, Hypothecation of assets agreement and term loan agreement. Charge Registered on 03.11.2003.

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

Rs.1.000 million

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

Hypothecation of all present and future Machinery such as double doggle and Generator 62.50 KVA etc.

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

Charge operate as first charge to secure repayment of principal loan amount together with interest due to bank by borrower at any time or ultimately found due.

Rate of interest 11.5% Margin 25%

Other terms and conditions as per agreement

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

Punjab National Bank, Chaibasa, West Singhbhum, Jharkhand.

6) Date and brief description of instrument modifying the charge

Dated: 15.09.2005, Term Loan Agreement and W.C. Loan Agreement. Hypothecation of Assets to secure Term Loan.

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.

	Old Rs. In Millions	New Rs. In Millions
T.L.	1.000	31.000
W.C.	0.000	5.000
Total	1.000	36.000

Extension of Old Charge:

For working Capital Stock of Iron Ore, lumps, sized iron ore, fine iron ores, consumable stores, receivables and other current assets.

For T.L. all the present and future fixed assets including cursing plant, screening plant, DG Set, Pay Loader etc., charged to secure repayment of principal loan amount as well interest due moment of time.

Equitable Mortgage of Block Assets.

FIXED ASSETS:

• Land
• Plant and Machinery
• Electrical Installation
• Computer
• Vehicles
• Office Equipment
• Furniture and Fixture
• Motor Cycle
• Diesel Generator
• Factory Shed
• Pollution Control Equipment
• Material Handling
• Earth Moving Equipment
• Jeep
• Laboratory Equipment
• Plantation
• Factory Building

FINANCIAL REVIEW:

Two companies namely Bajrang Ispat limited and Mangalam Ispat Private Limited were merged with the company as per the scheme approved by Hon’ble High Court at Kolkata, vide Order Dated 26.09.2007.

PROFITS AND DIVIDEND:

During the year Profit Before Tax has been increased from Rs.230.069 millions to Rs.1322.673 millions there is increase of 575%, which is far higher than the overall growth of Country’s Economy.

During the year Company paid Dividend of 1200% for the year 2006-07 amounting to Rs.121.008 millions out of the profit of the company earned during the year. Board request to treat this interim dividend as final dividend as final dividend, hence no any further dividend for the year 2006-07 is recommended.

BUSINESS:

In today’s era of fierce Global Competition and rapid technological advances, an organization has to move twice as fast just to keep pace with the changing world and four times as fast if it has to speed ahead. At subject, they are in the process of achieving the same.

At Guali mines, Keonjhar District of Orissa, they have one of the largest iron ore mines. They propose to transform form mere mining activities to a captive iron or mine with power plant facilities. With this they propose to be the sponge iron producer with its own raw material source and power generation making it one of the most cost effective producer of sponge iron in the country.

They are equally aware of the sense of duty as corporate citizen and the domestic business opportunity and global markets. Infant, the vision is to develop underdeveloped regions of India. The facilities at Guali Sector, Dist. Keonjhar and Kuarmunda Village, Dist. Sundargarh fall under State of Orissa. They have been and will continue to stand Committed to State and its people.

At subject, they recognize that environmental protection is an integral part of the operations. They are committed to conducting a business safely, ethically, and in responsible manner that protects the natural resources and the environment.

The philosophy of moving up the value chain by increasing the portfolio continues. A zeal to be ahead of others, to venture where few dared has increasing orbits of growth. The sector they have chosen to operate means having key national priorities, even as they build profitable business and create value for shareholder.

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.47.08
UK Pound	1	Rs.71.17
Euro	1	Rs.66.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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