MIRA INFORM REPORT

Report Date :

26.02.2008

IDENTIFICATION DETAILS

Name :	BHATIA INTERNATIONAL LIMITED
Registered Office :	BCC House, 8/5, Manormaganj, New Ratan Building, Main Road, Indore-452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	30.08.1999
Com. Reg. No.:	013713
CIN No.: [Company Identification No.]	U23101MP1999PLC013713
TAN No.: [Tax Deduction & Collection Account No.]	BPLB01119G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Traders and Importers of indigenous coal.

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 5604372
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financials position is good. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered/Corporate Office :	BCC House, 8/5, Manormaganj, New Ratan Building, Main Road, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-4066101/2498101
Fax No.:	91-731-2498102/ 4066102
E-Mail :	info@bhatiacoalindia.com bcchowse@vsnl.com
Website :	http://www.bhatiacolindia.com
Regional Offices:	Western Region A-309, Tirupati Plaza,  Near Collector Office,  Atwa Gate, SURAT (Guj.)  Tel. : +91-261-2471430 Fax : +91-261-2460471 Central Region Near Cement Carrier,  Opp. Janta College, Chandrapur (M.S.) Tel. : +91-7172-250636, 252419 Fax : +91-7172-251745 Southern Region IH2, Atkinson Palace, 4, Atkinson Road, Vepery Chennai (T.N.) Tel. : +91-44-25612171 Fax : +91-44-25611099
Administrative office:	10-11, 2^nd Floor, Dawa Bazar, 13-14, R. N. T. Marg, Indore – 452 001, Madhya Pradesh
Tel. No.:	91-731-5041249 / 2702892
Fax No.:	91-731-2702892

DIRECTORS

Name :	Mr. Gurvinder Singh
Designation :	Director
Address :	360, Vishnu Puri Annex, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	06.06.1955
Date of Appointment :	30.08.1999
Name :	Mr. Surinder Singh Bhatia
Designation :	Director
Address :	12-14, Piplia Rao, Near Aditya Nagar, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	09.08.1963
Date of Appointment :	01.01.2004
Name :	Mr. Manjeet Singh Bhatia
Designation :	Director
Address :	Apoorva Apartment, Near Police station, Jari Patka, Nagpur – 440 014, Maharashtra, India
Date of Birth/Age :	10.05.1961
Date of Appointment :	30.08.1999
Name :	Mr. Kulwant S. Bhatia
Designation :	Director
Address :	8/5, Manormaganj Navratan Bagh, Main Road, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	27.05.1959
Date of Appointment :	01.08.2000
Name :	Mr. Amandeep S. Bhatia
Designation :	Whole Time Director
Address :	360, Vishnu Puri Annex, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	23.10.1981
Date of Appointment :	27.08.2003
Name :	Mr. Jitendra Kumar Jain
Designation :	Director
Address :	745/8, Nanda Nagar, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	30.06.1963
Date of Appointment :	01.08.2000
Name :	Mr. Prem Prakash Agarwal
Designation :	Director
Address :	F-103 Shalimar Towns, Nip Niranjanpur, Indore, Madhya Pradesh, India
Date of Birth/Age :	14.10.1942
Date of Appointment :	17.02.2005
Name :	Mr. Satya Prakash Verma
Designation :	Director
Address :	194-C Ashok Nagar Road No. 1, Ranchi – 834 001, India
Date of Birth/Age :	15.02.1938
Date of Appointment :	17.02.2005
Name :	Mr. Lal Krishna Thanvi
Designation :	Director
Address :	7 Ganesh Shivkripa Apartment, Ichanath Mahadev Mandir, Opposite SVR College, Surat, Gujarat, India
Date of Birth/Age :	01.01.1963
Date of Appointment :	01.01.2004

KEY EXECUTIVES

Name :	Mrs. Sunila Rao
Designation :	Secretary
Address :	26/3, Mridula Bhawan, Shakti Nagar, Indore – 452 018, Madhya Pradesh, India
Date of Birth/Age :	12.01.1982
Date of Appointment :	01.06.2004
Name :	Mr. Anil Bhaskaran
Designation :	Secretary
Address :	102, Kalpataru Apartment, 6, Dhanwantari Nagar, Indore – 452 009, Madhya Pradesh, India
Tel. No.:	91-731-4200219
Fax No.:	91-731-4066102
E-Mail:	anilbhaskaran@bhatiacoalindia.com
Date of Birth/Age :	26.10.1968
Date of Appointment :	07.11.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Kripal Singh Bhatia	22099
Mr. Gurvinder Singh Bhatia	813791
Mr. Surinder Singh Bhatia	1427866
Ms. Veena Bhatia	39266
Ms. Gurvinder Kaur Bhatia	168633
BCC Cargo Private Limited	112000
Mr. Amandeep Singh Bhatia	545166
Ms. Narendra Kaur Bhatia	2000
Surender Singh Bhatia HUF	381363
BCC Investments (India) Private Limited	100000
Category	Percentage of Holding
Bodies corporate (not mentioned above)	39.01
Directors or relatives of directors	34.72
Other top fifty (50) shareholders (other than listed above)	26.27
Total	100.00

BUSINESS DETAILS

Line of Business :	Traders and Importers indigenous coal.
Products :	Indigenous Coal Washed Coal Lignite Coal Steaming Coal Coking Coal
Imports :
Countries :	Coking coal from Australia and China and steaming coal from all over India

GENERAL INFORMATION

Customers :

Clients are the doyens of industry in the field of cement, chemicals, fertilizers, paper, power, solvents, steel, sugar and textile.

• Aditya Birla Group
• Ambuja Group
• Bangur Group
• B K Birla Group 
• Chettinad Cement
• Dharani Sugar
• DPL
• HNL
• India Cement 
• L and T
• Madras Cement
• Malabar Cement
• Mehta Group
• Mohan Breweries
• M P Birla Group
• MSEB 
• Reliance
• Shara Group
• SCM Suger
• Seshasayee Paper and Boards Ltd
• Shakti Sugar
• Singhania Group
• S K Birla Group
• Tatas
• Thapar Group
• Thiruaroran Sugar Group
• TNPL

No. of Employees :

700

Bankers :

• State Bank of Mysore- Indore
• State Bank of India- Indore
• UCO Bank of India- Indore
• Union Bank of India – Indore
• Bank of Punjab – Indore
• Industrial Bank of India – Indore

Facilities :

Particulars	Ason 31.03.2005 (Rs. In Millions)
Secured Loans:
A) Term Loan for Ghuggus Project
1. State Bank of Mysore, Indore	20.307
2. State Bank of Indore, Indore i. First charge by way of Equity Mortgage on Land and Building of Ghuggus Washery Project on Pari-passu basis. ii. First hypothecation charge on Plant and Machinery and other movable / Fixed Asset, present and future of the Ghuggus Project, on pari-passu basis and personal Guarantee of the Directors of the company.	29.556
B) Term Loan for Coke Oven Project
1. Indus Ind Bank Limited, Indore i. First and exclusive charge on the entire Fixed / Movable Assets of the Coke Oven Plant situated at Gummidipondi and Personal Guarantee of the Directors.	40.000
C) Term Loans secured by way of hypothecation of Tippers, Loaders and Vehicles
i. HDFC Bank, Indore	5.800
ii. CITI corp. Finance Limited, Indore	0.000
iii. ICICI Bank Limited, Indore	10.299
Total	16.099
D) Loan against FDRs (Fixed Deposit receipts)
1. UCO Bank, Indore Lien against Fixed Deposits	180.204
2. Union Bank of India, Indore Lien against Fixed Deposits and Third Party Guarantee by way Deposits	40.014
3. Bank of Punjab, Indore Lien against Fixed Deposits and Third Party Guarantee by way of Deposits	9.000
4. Indus Ind Bank Limited, Indore Lien against Fixed Deposits and Third Party Guarantee by way of Deposits	64.107
Total	293.325
Unsecured Loans:
From Directors	1000.038
Total	1000.038

Banking Relations :	Satisfactory
Auditors :
Name :	R. S. Bansal and Company Chartered Accountants
Address :	Urvashi, 1^st Floor, 3, Jaora Compound, Indore, Madhya Pradesh, India
Tel. No.:	91-731-2702834-35 R- 91-731-2492425-35
Associates/Subsidiaries :	Bhatia Coal Seals Limited Date of Incorporation – April, 1991 Subject is engaged in trading of imported as well as indigenous coal. Associated Transport Company This is a proprietorship firm. Contact Person – Mr. S. S. Bhatia It had started its business in the year 1985. The firm is engaged in transportation and handling of coal of the group companies only. BCC Finance Limited Date of Incorporation – July, 1993 The company is engaged in finance of leasing and Hire Purchase business. The shares of the companies are being quoted at Bombay Stock Exchange, Ahmedabad and M. P. Stock Exchange, Indore, Madhya Pradesh. The company is profit making and continuous dividend paying company for last 5 years.
Group Companies:	BCC Investments India Private Limited BCC Cargo Private Limited Ishher overseas Private Limited

CAPITAL STRUCTURE

Authorized Capital:

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs. 10/- each	Rs. 130.000 millions

Issued, Subscribed Capital:

No. of Shares	Type	Value	Amount
10441277	Equity Shares	Rs. 10/- each	Rs. 104.413 Millions

Paid-up Capital:

No. of Shares	Type	Value	Amount
10441277	Equity Shares	Rs.10/- each	Rs104.413 Millions
	Less: Forfeited Share	Rs. Rs.10/-each	Rs.1.485 Million
	Total		Rs.102.928 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		102.928	89.023	55.701
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1298.165	992.791	625.804
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1401.093	1081.814	681.505
LOAN FUNDS
1] Secured Loans		806.803	811.360	399.288
2] Unsecured Loans		955.096	891.838	1000.038
TOTAL BORROWING		1761.899	1703.198	1399.326
DEFERRED TAX LIABILITIES		5.815	4.751	3.340
TOTAL		3168.807	2790.328	2084.171
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		979.518	926.492	337.361
Capital work-in-progress		85.393	0.000	0.000
INVESTMENT		19.460	9.619	0.592
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1528.188	902.689	942.010
	Sundry Debtors	4133.527	3091.939	1369.076
	Cash & Bank Balances	797.168	754.676	800.730
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	349.596	383.824	164.074
Total Current Assets		6808.479	5133.128	3275.890
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4473.734	3204.283	1529.886
	Provisions	250.487	74.898	0.000
Total Current Liabilities		4724.221	3279.181	1529.886
Net Current Assets		2084.259	1853.947	1746.004
MISCELLANEOUS EXPENSES		0.177	0.270	0.214
TOTAL		3168.807	2790.328	2084.171

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		15369.443	10059.079	8130.253
Other Income		0.022	0.552	349.532
Total Income		15369.465	10059.631	8479.785
Profit/(Loss) Before Tax		260.106	103.289	84.150
Provision for Taxation		92.841	36.202	31.652
Profit/(Loss) After Tax		167.265	67.087	52.498
Expenditures :
	Raw Material Consumed	244.656	0.000	8183.633
	Purchases made for re-sale	14174.669	9672.844	0.000
	Increase or decrease in finished goods	(56.615)	(122.272)	0.000
	Salaries, wages and bonus	58.752	28.517	0.000
	Managerial Remuneration	45.358	21.161	0.000
	Payment of auditors	0.260	0.097	0.000
	Interest	83.881	96.892	75.764
	Insurance Expenses	12.794	22.627	0.000
	Power and Fuel	8.408	2.566	0.000
	Depreciation and amortization	135.517	44.029	19.546
	Other Expenditure	401.680	74.255	116.692
Total Expenditure		15109.360	9956.342	8395.635

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.09	0.67	0.62
Net Profit Margin (PBT/Sales)	(%)	1.69	1.03	1.04
Return on Total Assets (PBT/Total Assets}	(%)	3.34	1.70	2.33
Return on Investment (ROI) (PBT/Networth)		0.19	0.10	0.12
Debt Equity Ratio (Total Liability/Networth)		4.63	4.61	4.30
Current Ratio (Current Asset/Current Liability)		1.44	1.56	2.14

LOCAL AGENCY FURTHER INFORMATION

Form 8

Name of the company

BHATIA INTERNATIONAL LIMITED

Presented By

Jointly by Mr. G S Bhatia, Chairman and Managing Director on behalf of the Company and State Bank of India, Commercial Branch, Indore, Madhya Pradesh, India

1) Date and description of instrument creating the change

31.10.2005

• Working Capital Consortium Agreement in Form CF-1
• Joint Deed of Hypothecation in Form Cf-2

All the above agreements have been executed between the Company and the consortium Banks i.e.

• State Bank of India, Commercial branch, Indore (Lead and A bank)
• State bank of Indore, Y N Road Branch, Indore (B Bank)
• UCO Bank, Sanyogitaganj Branch, Indore (C Bank)
• Central Bank of India, Siyaganj Branch, Indore (D Bank)
• Oriental bank of Commerce, Sneh Nagar Branch, Indore (E Bank)
• Centurian Bank of Punjab Limited, Navlakha Square Branch, Indore (F Bank)
• State Bank of Mysore, M G Road, Indore (G Bank)
• Union Bank of India, Sindhi Colony Branch, Indore (H Bank)

(hereinafter collectively called as “said banks” or “the SBI Consortium”)

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

Working Capital Consortium Limits sanctioned by the said Banks is Rs. 4580.000 millions as per details expounded in the First Schedule of the Working Capital Consortium Agreement and are as under:

Banks	Fund Based	Non-Fund Based	Total Limits
A Bank	200.000	650.000	850.000
B Bank	70.000	700.000	770.000
C Bank	50.000	750.000	800.000
D Bank	20.000	310.000	330.000
E Bank	40.000	560.000	600.000
F bank	0.000	150.000	150.000
G bank	40.000	380.000	420.000
H Bank	60.000	600.000	660.000
Total	480.000	4100.000	4580.000

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 above working Capital Credit facilities together with interest, compound interest, additional interest, liquidated damages, costs, charges, expenses and other moneys elaborately mentioned in the Second Schedule of the Working Capital Consortium Agreement, payable in respect thereof will be secured in favour of said Banks by of

1. First pari-passu charge by way of hypothecation and/pledge of the borrower’s current assets namely stocks of raw materials, semi-finished and finished goods (consumable stores and spares), bills receivables and book debts and all other movables of the borrower, both present and future excluding such movables as may be permitted by the said Banks from time to time.

2. Second charge on pari passu basis in favour of the said Banks after the charges created and/or to be created in favour of the term lenders of borrowers on the borrower’s immovable and movable properties (other than current assets) both present and future in a form and manner acceptable to the said banks.

3. Irrecoverable and unconditional guarantees in the form prescribed by the Lead Bank from its Directors and/or others for the payment and discharge by the borrower to the said banks of the sum of Rs. 4580.000 millions along with other charges mentioned above.

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

1. The working capital credit facility of Rs. 4580.000 millions in the form of overdrafts, cash credits, pre-shipment and post shipment credits, opening of Letter of credit, issuing of Guarantees including deferred payment guarantee and indemnities, negotiation and discounting of demand and/or usance bills and Cheques and such other facilities sanctioned by the said Banks has been secured by first pari passu charge by way of Hypothecation on all current assets and a second pari passu charge on the immovable properties of the borrower.

2. The borrower shall repay the above working Credit facilities to each of the said banks on demand of all such amounts together with interest, compound interest, additional interest, liquidated damages, costs charges, expenses and other monies thereon the rate or rates as may be applicable to the second schedule of the Working Capital Consortium Agreement.

3. Interest shall be charged on the outstanding in the said accounts at such rate or rates as may be determined by the said banks from time to time and if such rate or rates is or are linked to the Commercial Banks Advance Rate, than the effective rate of interest on such account(s) shall correspondingly stand revision.

4. As stipulated by the said banks from time to time, the borrower shall at all times maintain sufficient security margins.

5. The Borrower shall indemnity the said Banks and keeps the said banks harmless and the said banks harmless and indemnified at all times against all losses, damages, actions, costs, charges or expenses, which may be made against or sustained or incurred by the said banks.

6. The above said Agreements for Working Capital Credit facilities shall operates as continuing security for all monies indebtedness and liabilities.

7. The other terms and conditions, extent and operations of the Working Capital Credit limits of Rs. 4580.000 millions sanctioned by the said Banks have been given in the Working Capital Consortium agreement in Form CF1; Joint Deed of Hypothecation in Form CF 2; Inter Se agreement in Form CF 3 and Deed(s) of Guarantee, all dated 31.10.2005.

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

• State Bank of India, Commercial branch, Indore (Lead and A bank)
• State bank of Indore, Y N Road Branch, Indore (B Bank)
• UCO Bank, Sanyogitaganj Branch, Indore (C Bank)
• Central Bank of India, Siyaganj Branch, Indore (D Bank)
• Oriental bank of Commerce, Sneh Nagar Branch, Indore (E Bank)
• Centurian Bank of Punjab Limited, Navlakha Square Branch, Indore (F Bank)
• State Bank of Mysore, M G Road, Indore (G Bank)
• Union Bank of India, Sindhi Colony Branch, Indore (H Bank)

6) Date and brief description of instrument modifying the charge

Not Applicable

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.

Not Applicable

Corporate identity number (CIN) Foreign company registration number	U23101MP1999PLC013713
Name of the Company	BHATIA INTERNATIONAL LIMITED
Address	BCC House, 8/5, Manormaganj, New Ratan Building, Main Road, Indore-452001, Madhya Pradesh, India
This form is for	Modification of charge
Type of Charge	A charge on: Immovable Property Book Debts Movable Property (not being pledge)
Particulars of the charge holder	State Bank of India Commercial Branch, A B Road, Indore – 452 001, Madhya Pradesh, India E-mail: jaidev.dave@sbi.co.in
Nature or description of the instrument(s) creating or modifying the charge	Working Capital consortium agreement- CF1 Joint deed of hypothecation CF 2 Inter Se agreement CF3 Deed of Guarantee CF4 (executed by corporate guarantors) Deed of Guarantee CF 4 (executed by individual guarantors) Letter of undertaking for creating second charge on fixed assets Cf6 Form CF 8 Form CF9 Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties.
Date of the instrument creating or modifying the charge	23.05.2007
Amount secured by the charge	Rs. 6.160 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of Interest: Interest shall be charged on the outstanding at such rate(s) as may be determined by the Bank from time to time and if such rate is linked to commercial banks advance rate then effective rate of interest shall be charged accordingly. (b) Terms of repayment: The borrower shall repay the amount on demand to the respective bankers. (c) Margin: Cash Margin as stated in the first schedule to working capital consortium agreement. (d) Extent and operation of the charge: The credit facilities together with interest, costs, charges, expenses and other moneys payable will be secured in favour of the Banks by a first charge by way of hypothecation and/or pledge of the borrower’s current assets (as described in Article –II of working capital consortium agreement) both present and future. (e) Others: Creation of second mortgage and charge in favour of Banks ranking after charges created and/or to be created in favour of term lenders of Borrower on borrower’s immovable property both present and future. Personal guarantee of G S Bhatia, S S Bhatia, M S Bhatia, K S Bhatia, A S Bhatia, Veena Bhatia, G K Bhatia, I K Bhatia, G S Bhatia (HUF), corporate guarantee of ATC, BCC Estates Private Limited, Ishhar Overseas Private Limited, BCC Cargo Private Limited, BCC Investments (India) Private Limited, Reliance Services and Consultants Limited
Short particulars of the property charged (including location of the property)	Borrower hypothecate to and in favour of Banks jointly and to each of them severally all and singular stock of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables, book debts and all other movables exclusive as permitted by Bankers but inclusive of title to goods and other assets such as outstanding moneys, receivables incl. receivables by way of cash assistance and/ or cash inc. cash incentive scheme etc. both present and future of the borrower/ borrower’s division at various places.
Particular of the present modification	The credit facilities of Rs. 5057.500 millions sanctioned to the company under consortium is enhanced to Rs. 6160.000 millions. The previous charge is hence modified on the terms and conditions as stipulated in above columns as well as on the terms and conditions as specified in the respective agreements/ documents and their schedules (if any)

Fixed Assets

• Head Office
• Washery Chinchala
• Branch Korba
• Washery Ghuggus
• Coke Oven Plant
• Deshaling Division

AS PER WEBSITE

It took nature, millions of years to form this solid fuel and the ease with which it is being used today, throws new light on the role coal plays in the lives on a day-to-day basis. This is the story of an organization and its people whose dreams helped propel the economy of a country....

What began three decades ago as a wholesale distributor of steam coal to small volume customers, is today, a Rs. 7.5 billion (US $ 160 million), 25 office giant that employs 400 team members and uses state of the art technology to transform coal into clean fuel for electricity, cement and steel industries. 

One of the largest importers of coal, the group supplies coal, both indigenous and imported to various blue chip companies in almost all sectors where coal is used either for heat or power generation. The group imports from most of the coal mines in the world, and has the ability to supply varieties of coal, making it the perfect one stop shop for customers tailor made needs. 

Important milestones in the journey

1962:  Mr. Kripal Singhji Bhatia, Father of the Founder, started retailing Timber, Charcoal, Coke and Steam Coal.

1979:  Bhatia Coal Corporation, Mr. G. S. Bhatia's proprietorship was formed, which subsequently developed as the BCC Group.

1985:  Associated Transport Company, the proprietorship of Mr. S. S. Bhatia was formed, which offered end to end solutions.

1987:  The Group started supplying to Cement and Paper Industries. In addition to trading coal, it extended its support services to leading Indian and Multi- national companies.

1995:  First vessel carrying imported coal for the Group sailed into India. An important turning point.

1999:  Bhatia International came into existence, and took over Bhatia Coal Corporation, thus consolidating the business.

2001: Bhatia International forced its own Shipping division, and began chartering vessels.

2002:  The Group imported its centenarian vessel. In this year, 1.5 million tones of coal was imported. Bhatia International setup its first washery at Wani (Maharashtra) with a capacity of 1 million tones per annum.

2003:  In a strategic move, Bhatia International took over Bhatia Coal Sales limited, thus strengthening the scattered coal business. It imported 2 million tones of coal, becoming the largest importer of coal in India in the stock and sale business.

2004 and Beyond:  Bhatia International is in the process of setting up a 2 million tonnes washery at Ghughus (Maharashtra), followed by another in Korba (Chattisgarh) with a capacity of 2 million tonnes. It has also taken effective steps to set up its first coke oven plant in Tamilnadu.

The foresight and hard work of its promoters and team-members have helped the Group turnover reach where it is today. At Rs. 7.5 billion (US$ 60million), future projections look very bullish.

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. 40.05
UK Pound	1	Rs. 78.75
Euro	1	Rs. 59.39

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	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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