MIRA INFORM REPORT

Report Date :

09.01.2008

IDENTIFICATION DETAILS

Name :	MUKAND ENGINEERS LIMITED
Registered Office :	Bajaj Bhavan, 3^rd Floor, 226, Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	30.01.1987
Com. Reg. No.:	042378
CIN No.: [Company Identification No.]	L45200MH1987PLC042378
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19304F
PAN No.: [Permanent Account No.]	AAACM4974G
Legal Form :	Public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Company is engaged in Providing Engineering Construction Services

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 1493484
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory track. The company has wiped out pervious losses. Its payments are correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Bajaj Bhavan, 3^rd Floor, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai – 400 021, Maharashtra, India.
Tel. No.:	91-22-22021060 / 2281 / 6524 / 3327 / 1025
Fax No.:	91-22-22021174
E-Mail :	mukandop@bom3.vsnl.net.in info@mukand.com
Website :	http://www.mukand.com

DIRECTORS

Name :	Mr. Rajesh V. Shah
Designation :	Chairman
Name :	Mr. Niraj Bajaj
Designation :	Director
Date of Appointment :	27.07.1992
Name :	Mr. D. S. Mulla
Designation :	Director
Name :	Mr. Prakash V. Mehta
Designation :	Director
Name :	Mr. T S Anand
Designation :	Director
Date of Appointment :	27.07.2001
Name :	Mr. N. Ramanathan
Designation :	Director
Date of Appointment :	14.05.2007
List of Directorship held:	· Mukand Limited · Bajaj Hindusthan Limited · Hind Rectifiers Limited · RPG Life Sciences Limited · Bajaj Auto Limited

KEY EXECUTIVES

Name :	Mr. K P Jotwani
Designation :	Manager
Name :	Mr. P R Dhruva
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Individuals	9499576	12.99
Corporate Bodies	25375820	34.71
Institutions
Mutual Funds/ UTI	3722224	5.09
Financial Institutions / Banks	254530	0.35
Insurance Companies	7679404	10.50
Foreign Institutions Investors	4956197	6.78
Non-Institutions
Corporate Bodies	4433336	6.06
Individual Shareholders Holdings nominal Share Capital up to Rs.0.100 Millions	13501008	18.47
Individual Shareholders Holdings nominal Share Capital in excess of Rs.0.100 Millions	3162.881	4.33
Any Other (Clearing Members)	345816	0.47
Any Other (NRIs)	183337	0.25
Total	69318364	100.00

BUSINESS DETAILS

Line of Business :	Company is engaged in Providing Engineering Construction Services
Products:	· Billets/blooms · Rolled products

GENERAL INFORMATION

Customers :

· Original equipment manufacturers (OEMs) like -

· Motor Industries Company Limited

· Hi-Tech Gears Limited

· SKF India Limited

· Sundram Fasteners Limited

· Maruti Udyog Limited

· Hero Honda Motors Limited

· Dephi Automotive Systems Limited

· Bajaj Auto Limited

· Sona Koyo Stearing Systems Limited

· Honda Motor Cycle and Scooter India Private Limited

· Steel Authority of India Limited

· Tata Group of companies

· National Aluminium Company Limited

· Larsen and Toubro Limited

· Bharat Heavy Electricals Limited

· Hindustan Aluminium Limited

· State Electricity Boards

· Sterlite/Bharat Aluminium Company Limited

· Nuclear Power Corporation Limited

· Loesche India

· National Thermal Power Corporation Limited

· Ispat Industries

· National Hydro Power Corporation Limited

· Essar Group

· Indian Space Research Organisation

· Birla Copper

· Defence Research and Development Organisation

· Directorate General of Naval Projects

· Port Trusts

· Indian Navy

· Ship Building Centre

· Mazgaon Docks Limited

No. of Employees :

600

Bankers :

· Allahabad Bank

· Axis Bank Limited

· Indian Overseas Bank

Facilities :

Secured Loans:	31.03.2007
Loans from Banks:
Working Capital	19.432
Others Secured against Vehicle Purchased thereagainst	0.288
Loan from a company	5.265
Total	24.985
Unsecured Loans:
Fixed Deposits	90.086
Interest accrued thereon	9.772
Inter-Corporate Deposits	140.000
Short Term loan from a Bank	239.858

Banking Relations :	Satisfactory
Auditors :
Name :	Dalal and Shah Chartered Accountants
Associates/Subsidiaries :	· Mukand Limited · Indian Thermal Power Limited · Mukand Global Finance Limited · Mukand International Limited · Vidyavihar Containers Limited · Mukand Vijaynagar Steel Limited · Bombay Forgings Limited · Stainless India Limited · Hospet Steels Limited · Kalyani Mukand Limited · Jamnalal Sons Private Limited · Conquest Investments and Finance Limited · Econium Investments and Finance Limited · Fusion Investments and Financial Services Limited · Catalyst Finance Limited · Primus Investments and Finance Limited · Lineage Investments Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs.10/- Each	Rs.200.000 Millions
500,000	Preference Shares	Rs.100/- Each	Rs.50.000 Millions
	Total		Rs.250.000 Millions

Issued Capital:

No. of Shares	Type	Value	Amount
12592700	Equity shares	Rs.10/- each	Rs.125.927 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12572400	Equity Shares	Rs.10/- Each	Rs.125.724 Millions
Add:	Forfeited Shares		Rs.0.073 Millions
	Total		Rs.125.797 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		125.797	125.797	125.797
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		247.574	231.867	224.766
4] (Accumulated Losses)		0.000	0.000	(7.884)
NETWORTH		373.371	357.664	342.679
LOAN FUNDS
1] Secured Loans		24.986	28.018	32.710
2] Unsecured Loans		239.858	230.848	258.420
TOTAL BORROWING		264.844	258.866	291.130
DEFERRED TAX LIABILITIES		10.404	11.540	17.243
TOTAL		648.619	628.070	651.052
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		56.307	71.067	97.651
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		17.560	17.577	17.579
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.357	11.234	23.603
	Sundry Debtors	162.534	142.651	149.566
	Cash & Bank Balances	18.856	27.887	25.746
	Other Current Assets	64.565	63.122	113.953
	Loans & Advances	616.116	614.582	624.316
Total Current Assets		893.428	859.476	937.184
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	192.078	195.048	276.845
	Provisions	126.598	125.002	124.517
Total Current Liabilities		318.676	320.050	401.362
Net Current Assets		574.752	539.426	535.822
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		648.619	628.070	651.052

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		330.347	259.993	320.846
Other Income		0.000	0.000	0.000
Total Income		330.347	259.993	320.846
Profit/(Loss) Before Tax		16.147	10.353	(38.759)
Provision for Taxation		(0.405)	(4.888)	(7.143)
Profit/(Loss) After Tax		16.552	15.241	(31.616)
Export Value		N.A.	N.A.	N.A.
Import Value		N.A.	N.A.	N.A.
Expenditures :
	Cost of Goods Sold	178.511	108.058	0.000
	Manufacturing Expenses	48.090	36.131	0.000
	Administrative and other Expenses	50.976	47.483	0.000
	Depreciation	9.807	23.622	0.000
	Interest and Financial Charges	26.812	34.343	0.000
	Other Expenditure	0.003	0.003	359.605
Total Expenditure		314.199	249.640	359.605

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2007 1^st Quarter	30.09.2007 2^nd Quarter
Sales Turnover	82.800	43.100
Other Income	5.500	7.700
Total Income	88.300	50.800
Total Expenditure	77.400	39.100
Operating Profit	10.900	11.700
Interest	6.500	6.300
Gross Profit	4.400	5.400
Depreciation	1.300	1.300
Tax	0.100	0.300
Reported PAT	3.200	3.800

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio	0.72	0.79	0.91
Long Term Debt Equity Ratio	0.26	0.31	0.48
Current Ratio	1.71	1.62	1.70
TURNOVER RATIOS
Fixed Assets	1.06	0.65	0.87
Inventory	13.46	10.95	16.97
Debtors	1.87	1.30	1.96
Interest Cover Ratio	1.76	1.07	(0.01)
Operating Profit Margin (%)	20.45	13.75	10.96
Profit Before Interest and Tax Margin (%)	17.02	1.36	(0.08)
Cash Profit Margin (%)	10.73	(2.10)	(0.83)
Adjusted Net Profit Margin (%)	7.31	(14.48)	(11.86)
Return on Capital Employed (%)	7.76	0.42	0.00
Return on Net Worth(%)	5.72	(7.88)	0.00

LOCAL AGENCY FURTHER INFORMATION

History

Mukand Engineers Limited, (MEL), was incorporated in January 1987 under the name and style of Mukand Construction and Project Engineering company Private Limited. Their object was engineering construction, erection and commissioning of Plants. It was a Subsidiary of Mukand Limited. It became deemed Public company in February 1990 and later was converted into Public Limited company in July 1992 and a fresh certificate was incorporated. The company was promoted by Mukand Limited, it is a part of Shah and Bajaj group companies.

Presently projects executed by the company include Project and Design Engineering, Mechanical and Civil Construction and Site Fabrication Works. Company now focus on Core Sector Areas of Power Transmission, HDVC Lines, Hydrocarbon and Port Modernization. 

The company has come out with Public Issue of 30,08,000 Equity Shares of Rs. 10/- for cash at a premium of Rs. 30/- per share aggregating to Rs. 120.300 Millions. 

In 1999-2000, the company has setup an Authorised Training Centre in Kurla, Maharashtra for high-end computer training. To facilitate synergical benefits and expansion of the present business, the company acquired the EDP department of Mukand Limited, which possesses facilities in software development, consultancy, data processing, accounting system on ERP, etc. 

The company completed the prestigious order which was received from NALCO for the Civil and Structural work at Angul, Orissa. It is also executing turnkey project of green anode plant of NALCO at Angul. The Company's Info tech division has suffered set back due to melt down of the IT industry. The company is expecting orders from Power generation and petrochemical industry and also expects work from refurbishing programme being undertaken by Power plants.

· Operations:

General - The income from operations, waiver and other income during the year was Rs.271.000 Million compared to Rs.306.000 Million in the corresponding previous year. The Company earned a profit of Rs.15.000 Million during the year under review as compared to loss of Rs.32.000 Million in the previous year. 

Engineering - The infrastructure industry is expected to grow at a rapid rate and the investment in expansion/new projects of Petroleum, Steel and Engineering is also increasing. 

The income from Engineering operation during the year was Rs.155.000 Million. Engineering operations incurred loss of Rs.15.000 Million during the year under review as compared to loss of Rs.11.000 Million in the previous year. 

Four orders amounting to Rs.510.000 Millions were received during the year and the outstanding orders as at the end of the year were Rs.500.000 Million Rs.135.000 Million at the beginning of the year. 

The company has received Rs.22.000 Millions by way of interest and installments against debts purchased from Commerzbank AG. 

Infotech - The Income from Infotech operations during the year was Rs.46.000 Million. Infotech operations incurred profits of Rs.7.000 Million during the year under review as compared to loss of Rs.18.000 Million in the previous year. 

· Financial: 

During the year, company negotiated with Finance Company for conclusion of lease arrangement. Company derived Rs.42.000 Millions waiver of future lease rents. 

During the year, company reduced unsecured loans by Rs.27.000 Millions. Unsecured loans from Finance Companies and Banks were replaced by Inter Corporate Deposit.

The replacement will result in reduction in interest costs of Rs.3 Million per annum. 

ENGINEERING AND CONSTRUCTION DIVISION:

· INDUSTRY STRUCTURE ANDDEVELOPMENTS: -

The company undertakes detailed Engineering, Civil and Structural work including Mechanical, Electrical and Piping, for the clients in Petroleum, Power Generation and Steel / Aluminium manufacturing sectors.

· OUTLOOK:

The economy during current fiscal is expected to grow at about 8%. New projects will be undertaken for capacity expansion and infrastructure developments. Steel, Power and Petroleum industries are expanding their production capacities. Company has a good track record of executing expansion projects in these industries.

· INFOTECH DIVISION:

The company continues to undertake Electronic Data Processing and ERP advisory and support activities. Efforts are on to procure additional business from large companies who are outsourcing.

· SEGMENTWISE PERFORMANCE:

The Income from operations of the Engineering and Construction business amounted to Rs.232 million for the year under review as against Rs.155 million in the previous year. Infotech business income amounted to Rs.56 million in the current year against Rs.46 million in the previous year. The detailed disclosures in respect of both the segments of the company are available in the financial statements,

· FINANCIAL PERFORMANCE:

For the year under review turnover and other receipts amount to Rs.310 million compared to Rs.271 • million in the previous year. The profit for the year before interest and depreciation amounted to Rs.53 million as against profit of Rs.68 million in the previous year.

The company has received an approval for Bank Guarantee facility of Rs.50 Million during the year. This will enable the Company to procure more orders. Discussions with the Bankers will be continued to get enhanced Bank Guarantee facility.

Notes-forming part of the Accounts :

Loan Funds :

Nature of security for Secured Loans: Cash credit facilities from Allahabad Bank, UTI Bank Limited and Indian Overseas Bank are secured by hypothecation of all the stocks, book debts and moveable fixed assets of the Company, (Also refer footnote (@) under Schedule 5).

Contingent Liability not As at provided for:	31.3.2007 Rs. In Millions
Disputed Income Tax as the matters are in appeal	52.969
Disputed Sales Tax as the matters are in appeal	0.039
Corporate Guarantee given by the Company on behalf of a company	60.000
Counter Guarantees given by the Company on behalf of companies	903.625
Contribution to ESIC for contract labour	-

In the opinion of the Board of Directors, all items of Current Assets, Loans and Advances continue to have a realisable value of at least the amounts at which they are stated in the Balance Sheet, unless otherwise stated.

Other Loans and Advances" include: Due from Manager of the Company Rs. Nil (Previous Year Rs.0.197 Millions) Maximum balance outstanding during the year Rs.0.197 Millions (Previous Year Rs.0.298 Millions).

Auditor's Remuneration	31.03.2007 Rs. In Millions
As Auditors	0.250
As Tax Auditors	0.016
For Other Matters	0.090
For Certification work	0.090
Out of pocket expenses	0.018

The company has loans aggregating Rs.219,450 Millions - and interest recoverable aggregating Rs.62,332 Millions due from investment .companies. The net worth of these companies has eroded. On the undertaking by these companies to pay the principal amount along with interest up to 31s1 March, 2003 before the end of the financial year 2008-2009, the Company has agreed to waive interest on these loans with effect from 1SI April,2003. As a matter of prudence, the Company had already stopped accounting for interest income on these loans with effect from 1s1 April, 2003. Further, the management believes that ultimate losses that may result on account of these loans and recoverable will depend upon the amounts that would be realized from the financial assets of these companies. Under these circumstances, being unable to make an informed judgment, the auditors have relied upon the judgment of the management regarding the possible reliability of the dues from these companies.

As per the understanding reached by Mukand Limited with Commerz bank AG as recorded in the Consent Terms filed in the Debt Recovery Tribunal, the company during 2002-2003 joined as a surety under the said Consent Decree to pay a sum of Rs.76,000 Millions in the manner specified in the Consent terms, whereby the Company became entitled to assignment of the entire outstanding debt of Rs.160,858 Millions due by Mukand Limited to the Bank together with the security held by the Bank. The company discharged its obligations under the said Consent Terms and the aforesaid debt has been assigned in its favour. The difference between the face value of debt assigned to the company and the obligation discharged by it aggregating Rs.84,858 Millions was credited to the Profit and Loss Account as "Exceptional Income" during 2002-2003 The company had participated along with other secured creditors in restructuring of Mukand Limited's debts and will receive the payment of principal amount and interest only over a period of 12 years, on similar lines, as other secured creditors, who have accepted the Financial Restructuring Package .(FRP) approved by the corporate Debt Restructuring Cell for Mukand Limited. As per the aforesaid FRP, interest for the period 1s' April, 2002 to 30'" September, 2004 was converted into a loan to be repaid in 96 monthly installments from April 2005 to March 2013. The Principal amount will be received in 144 monthly installments from April 2006 to March 2018. The installments of principal and interest have been received as per the said schedule. The Company have ceded pari -passu charge on the assets of Mukand Limited. to the extent of Priority Debt raised by Mukand Limited

Loans granted aggregating Rs.219,450 Millions matured for recovery. The company, on the basis of a legal opinion, continues to treat these loans as overdue for recovery and therefore does not consider them as loans granted while examining their limits under Section 372A of the companies Act, 1956.

FIXED ASSETS:

· Intellectual Property Rights

· Computers

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Hire – Purchases

As per Website Details

Mukand Limited is part of the Bajaj Groups of companies, one of the most dynamic business groups in India, Bajaj Auto Limited being the flagship company of the group. The group has substantial manufacturing and marketing interests in diverse fields including scooters, motorcycles and three-wheeler vehicles, electrical appliances etc.

Besides group affiliations, Mukand Limited has direct and substantial ownership/management interests in the associate companies listed below.

Specialists in engineering construction

Subject has substantial expertise, built up over the years, in all areas of engineering construction including feasibility studies, planning, construction, erection and commissioning of projects. The company is equipped with a whole range of mobile facilities including, mobile cranes, gantry cranes, tower crane etc. It has served industries such as oil exploration and refineries, petro-chemicals, fertilizers, steel plants, thermal and nuclear power plants

Engineering Construction Services

· Mukand Engineers Limited. undertakes:

· Engineering procurement and construction contracts

· Civil work including architechtural works.

· Structural fabrication and erection

· Piping work

· Mechanical work

· Electrical and instrumentation work

· Testing and commissioning services

· Revamping and shut-down jobs

· Fired heaters and furnaces

· Connected refractory, insulation and painting works.

BUSINESS PROFILE

· EPC Contracts

· Engineering Construction

· Revamping & Shutdown Jobs

· Fired Heaters packages

Civil Works

WORKS EXECUTED

3,50,000 M ³ of RCC and 4,000 no. of piles

Major Jobs

· Approach Bridges Up To 10 Mtr Width

· Under Ground Cable / Water Tunnel - Over 2 Km

· Over Head Water Tank of Max. 1,000 M³ and Upto +52 Mtr Ht

· Coal Tower of 3,000 M³ Cap. at a Ht of +23 Mtr to + 49mtrs

· Wagon Tippler Foundation Starting from a depth Of 18 Mtr

· Scale Pit Foundation from a depth of 18 Mtr

· HDPE Film Lined Open Reservoir of Capacity 6,00,000 M³

· Track Hopper Foundation For 2 X 500 Mw Power Plant

· Industrial Buildings of Area 35,000 Sqm

Structural Work

75,000 MT of Structures up to Height of +78.5 MTR and 10,000 MT of Technological Structures.

Major Jobs

· Jackets and decks for offshore platforms

· Equip support structures and platforms for Hydro Carbon Industry

· Converter Bay, Mixer Bay, Slag Yard for 1.44 Mn MTPA SMS

· Total Structural Work for 0.3 Mn MTPA Integrated Steel Plant

· Structural Work for Raw Material Handling Plant of 1.0 Million MTPA Integrated Steel Plant

· Technological Structures Including 50,000 M³ Capacity LD Gas Holder

· Pollution Control System Structures, Pig Casting Machine Stand, Billet And Bloom Bay Structures.

· Power plant structures

Fired Heaters

Total experience of 42 Heaters Upto Heat Duty of 41.12 MMKcal/hr

Piping Works

More than 2 million Inch-mtr. of Piping of different types of Materials

Major Jobs

Piping work carried out for LP, HP unit, underground, coated, cement lined, glass reinforced epoxy lined, offsites and jacketed

· Maximum pipe thickness welded - upto 63 mm

· Various pipe materials welded

· Carbon Steel - Non-IBR, IBR, NACE

· Stainless Steel -304, 304L, 308, 310, 316, 316L, 347H, 410

· Duplex Stainless Steel

· Cupro – Nickel

· Alloy Steel - P1, P5, P9, P11, P21, P22

· Incolloy – 800

· Titanium

· Aluminium

Electrical and Instrumentation Work

· Over 1,500 km of Cable Laying

· Power Distribution Systems

· Thyristor Drives, Instrumentation and Automation

· Telecommunication , Fire Detection and Alarm Systems

· Lighting

· Earthing and Lightning Protection Systems

Mechanical Works

· Tall columns, internals, heat exchangers and rotary equipment in Refineries

· Fired Heater and heat related packages for Refineries

· Basic Oxygen Furnace shop equipment of Capacity 1.44 mn MTPA

· Medium Merchant Mill of 1 million mtpa

· Converter, Mixer, Desulphurisation plant, Energy Optimising Furnace, Bloom and Billet Caster

· Single piece of 267 MT

· Aluminium strip caster and rolling mills

· Equipment modifications

1. PROJECTS FOR STEEL INDUSTRY

Steel Authority of India Limited

· Basic oxygen furnace shop for Rourkela Steel Plant

· Restoration of existing 50,000 M Capacity Gas Holder

Hospet Steels, Karnataka

· Civil and Structural work for Integrated Steel Plant

Ispat Industries

· Erection of Twin shell and Ladle furnace for Hot strip mill

Rashtriya Ispat Nigam Limited

· Assembly, erection and commissioning of Medium Merchant and Structural Mill

· Continuous Casting machines for Steel Melt Shop

2. PROJECTS FOR HYDROCARBON INDUSTRY

Bharat Petroleum Corporation Limited

· Fired heaters with APH System

· Piping and mechanical works

· Revamps and shutdowns

Kochi Refineries Limited

· Piping, Equipment erection, structural work

· Shutdown work

Haldia Petro Chemicals Limited

· Cold section piping

· Construction of 600,000 cubic mtr capacity Pond

Hindustan Petroleum Corporation Limited

· Fired heaters with APH System

Hindustan Organic Chemicals Limited

· Heaters on turnkey basis

· Piping and Equipment erection

Indian Petro Chemicals Limited

· Incinerator

· Piping, Structural, Equipment Erection

Oil and Natural Gas Commissions

· Regeneration Gas Heater

· Piping, Structural, Equipment Erection

PETROFILS

· Piping and equipment erection

· Piping, Structural, Equipment Erection

Gas Authority of India Limited

· Composite works for LPG Recovery Plant

Indian Oil Cprporation Limited

· Composite works

· Revamps and shutdowns

3. PROJECTS FOR NON-FERROUS INDUSTRY

Bharat Aluminium Company Limited

· Erection, testing and commissioning of hot and cold rolling mill equipment mainly imported from Russia, Germany and partly indigenous - 7400 Tons, and piping - 40,000" M

· Erection of Caster and Cold Rolling Mill thru FATA Hunter Italy

National Aluminium Company Limited

· Civil, Structural and erection works incl. caster and Rolling mill foundation

· Civil, Structural, equipment Erection, Electrics and Instrumentation work for Green Anode Plant and Alumina and Crushed Bath Handling Plant

· Erection, Testing, and Commissioning of Strip Casting Machine

WORK DONE JOINTLY WITH MUKAND LIMITED

ROURKELA STEEL PLANT - BASIC OXYGEN FURNACE SHOP

· Largest Order ever placed on a Private Company in India

· Mukand / MEL in association with Tyazpromexport, Russia

· Order Value : Rs. 6300 Million (1992-1997)

· Mukand/MEL Share - 85 %

Supply of Equipments

· 2 X 150 T LD Converter

· 2 X 1300 T Mixer

· 13 Nos EOT Cranes including 4 Nos., 250 T Ladle Handling Cranes

· Gas Cleaning Plant

· Gas Recovery Equipment

· Desulphurisation Plant

· Electrics, Instrumentation, Process Computerisation

· Utilities

· Fabrication and Erection Of Building Structures

· Fabrication Yard - Gantry Cranes

· Slag Yard and Mixer Shop

· Fabrication Yard - Gantry Cranes

· Utility Services - Pump House

· Flux and Ferro Alloy Handling System

· Waste Water Treatment Plant

· Electrical and Instrumentation Works

· 50,000 M ³ Gas Holder

· Day Bin House

· Mill Foundation

· Over Head Tank

· Utility Services

· Electrical and Instrumentation Works

· Civil and Structurals

· Electrical and Instrumentation Works

A joint venture of strategic alliance between Mukand Limited. and Kalyani Group, Pune with the plants located at Ginigera, Karnataka for manufacture of steel from iron ore using mini blast furnace.

Facilities and processes

The state-of-the art manufacturing facilities include :

Mini blast furnace, energy optimizing furnace, ladle furnaces, vacuum degassing, bloom caster, billet caster, blooming mill.

The company has its plant and facilities at Jodhpur, Rajastan and is in the business of manufacturing and marketing stainless steel flat products.

The company is engaged in the business of trading in metals and steels products

The company has modern manufacturing facilities at Aurangabad, Maharashtra for manufacture of closed die forgings.

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.39.27
UK Pound	1	Rs.77.44
Euro	1	Rs.57.73

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	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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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.	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