MIRA INFORM REPORT

Report Date :

27.11.2008

IDENTIFICATION DETAILS

Name :	THE SINGARENI COLLIERIES COMPANY LIMITED
Registered Office :	Kothagudem Collieries, District Khammam - 507101, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	23.12.1920
Com. Reg. No.:	01 – 000571
CIN No.: [Company Identification No.]	U10102AP1920SGC000571
PAN No.: [Permanent Account No.]	AAACT8873F
Legal Form :	A closely held public limited liability company
Line of Business :	Coal Mining

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 12515
Status :	Good
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established and reputed large company, jointly owned by state and central government. Trade relations are fair. Payments are reported as slow perhaps due to bureaucratic slowness and lengthy procedures for releasing money. However, dues can be regarded as safe due to the exposure of government. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Kothagudem Collieries, District Khammam - 507101, Andhra Pradesh
Tel. No.:	91-8744-242873
Fax No.:	91-8744-242393
E-Mail :	cosecy@scclmines.com
Branch:	Singareni Bhavan, Red Hills, PB. No.18, Khiratabad PO, Hyderabad – 500 004
Tel No:	91-40-23397775
Fax No:	91-40-23307653

DIRECTORS

Name :	Sri. Narsing Rao Singayapalli
Designation :	Managing Director
Address :	K-7/5, 3^rd Floor, Kundanbagh Government.Quarters, Begumpet, Hyderabad – 500 016, Andhra Pradesh.
Date of Birth/Age :	03.05.1958
Date of Appointment :	18.09.2006
Name :	Sri. Paritala Vasudeva Rao
Designation :	Director (Operations)
Address :	37B, SBH Colony, Saidabad, Hyderabad – 500 650, Andhra Pradesh.
Date of Birth/Age :	17.09.1946
Date of Appointment :	30.09.2006
Name :	Sri.Jammalamadaka Venkata Dattatreyulu
Designation :	Director (Planning and Projects)
Address :	SOB No.1, Bunglows Area, L.D.Palli, Kothagudem – 507 101, Khammam, Andhra Pradesh.
Date of Birth/Age :	14.04.1953
Date of Appointment :	01.09.2004
Name :	Sri. Abhiram Sharma
Designation :	Director
Address :	At/PO – Mokar, Jehanabad, Bihar.
Date of Birth/Age :	06.08.1947
Date of Appointment :	08.02.2005
Name :	Sri Sanjiv Kumar Mittal
Designation :	Director
Address :	A-76, Sector – 61, Noida – 201 301, Uttar Pradesh.
Date of Birth/Age :	08.08.1963
Date of Appointment :	10.02.2005
Name :	Sri. Kuljit Singh Kropha
Designation :	Director
Address :	D-1, 39, Bharti Nagar, New Delhi – 100 001.
Date of Birth/Age :	19.12.1957
Date of Appointment :	26.04.2005
Name :	Sri Ashok Kumar Goyal
Designation :	Director
Address :	Flat No.711, Teja Block, My Home Navadweep Apartment, Near HI – Tech City, Hyderabad – 500 045, Andhra Pradesh.
Date of Birth/Age :	03.12.1949
Date of Appointment :	24.05.2006
Name :	Sri. Raja Rao Eluripati
Designation :	Whole Time Director (Electrical and Mechanical)
Address :	QR.No.J-3, Bungalows Area, L.D.Palli, Kothagudem – 507 101, Khammam, Andhra Pradesh.
Date of Birth/Age :	04.12.1950
Date of Appointment :	01.03.2006
Name :	Sri. Venkata Krishna Reddy EDA
Designation :	Whole-Time Director (Finance)
Address :	S-4, Bungalows Area, L.D.Palli, Kothagudem – 507 101, Khammam, Andhra Pradesh.
Date of Birth/Age :	24.08.1961
Date of Appointment :	10.06.2006
Name :	Sri. Ippagunta Yashodhara Ramakrishna Rao
Designation :	Director
Address :	Plot.No.182, Road No.72, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh.
Date of Birth/Age :	22.01.1956
Date of Appointment :	23.06.2006
Name :	Sri Busani Venkateswar Rao
Designation :	Whole-Time Director (P.A.and W)
Address :	DD Colony, Bagh Ambarpet, Hyderabad – 500 103, Andhra Pradesh
Date of Birth/Age :	02.12.1959
Date of Appointment :	04.08.2006
Name :	Sri. Leela RamaKrishna Prasad Doddapaneni
Designation :	Whole –Time Director (Planning and Projects)
Address :	SOB No.2,Bungalows Area, L.D.Palli, Kothagudem – 507 101, Khammam, Andhra Pradesh.
Date of Birth/Age :	17.11.1956
Date of Appointment :	01.10.2006
Name :	Sri. Sashidhar Lingampally
Designation :	Whole-Time Director (Personnel, Administration and Welfare)
Address :	Flat No.31, Officers Transit Hostel, New Type, Kundanbagh, Begumpet, Hyderabad – 500 016, Andhra Pradesh.
Date of Birth/Age :	24.09.1961
Date of Appointment :	05.07.2007
Name :	Sri. Deepak Kumar Panwar
Designation :	Director
Address :	8-2-601/P/22, Road No.10, Panchavati Colony, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh.
Date of Birth/Age :	12.03.1950
Date of Appointment :	18.08.2007
Name :	Sri. Dinesh Chandra Garg
Designation :	Director
Address :	CMD’s Bungalows, Koyla Vihar, Civil Lines, Nagpur – 440 001, Maharashtra.
Date of Birth/Age :	12.11.1954
Date of Appointment :	21.09.2007
Name :	Sri. Kailash Chand Samria
Designation :	Director
Address :	M-2795, Netaji Nagar, New Delhi – 110 023.
Date of Birth/Age :	13.11.1969
Date of Appointment :	25.09.2007
Name :	Sri. Ashok Kumar Goyal
Designation :	Director
Address :	Flat No.711/811, Teja Block, My Home, Navadweepa Apartment, Near HI-Tech City, Hyderabad – 500 033, Andhra Pradesh.
Date of Birth/Age :	03.12.1949
Date of Appointment :	11.10.2007

KEY EXECUTIVES

Name :	Mr.Sri Janamanchi Rama Krishna
Designation :	Company Secretary
Address :	MA-8, Near Central Workshop, Writers Basthi, Kothagudem – 507 101, Khammam, Andhra Pradesh.
Date of Birth/Age :	04.05.1956
Date of Appointment :	20.11.1995
Name :	Sri.S. Narsing Rao, IAS
Designation :	C and MD, SCCL
Tel No :	91-40-23393746
Fax No :	91-40-23393746
Name :	Sri Dr.T.R.K.Rao IRTS
Designation :	ED(M and M,PR and Finance)
Tel No :	91-40-23316171
Fax No :	91-40-23307653
Name :	Sri.Surendra Pandey IFS
Designation :	Advisor (Forestry)
Tel No :	91-8744-249402
Name :	Sri.B.Ramesh Kumar
Designation :	CGM (CP & P)
Tel No :	91-8744-243108
Fax No :	91-8744-243108
Name:	Sri.S. Chandrasekhar
Designation :	SO to C & MD
Tel No:	91-40-23391761
Fax No:	91-40-23307653

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON (27.12.2007)

Names of Shareholders	No. of Shares
The Governor of Andhra Pradesh	885599139
The President of India	847559997
The South Arcot diocesan Corp.Private limited	6440
Mr.Tyeb Abdeally Attari	1120
LT.Col.M. Mathew	1012
Mr.Ronald Duttson	1000

Equity Share Breakup	Percentage of Holding
Category (As on 31.03.2007)
Government ( Central and State)	100.00

BUSINESS DETAILS

Line of Business :

Coal Mining

GENERAL INFORMATION

No. of Employees :

Around 75753

Bankers :

State Bank of Hyderabad

Facilities :

Particulars	31.03.2008 (Rs. In Millions)
Secured Loan:
(A) FROM THE GOVERNMENT OF INDIA: (Secured by a first charge in favour of Government of India created by equitable mortgage on the entire immovable assets of the Company, except 300 Acres of freehold land required for employee welfare, and guaranteed by Government of A.P., as per the Tripartite agreement dated 19.10.2004) Add: Funded interest(Moratorium up to 31.03.2007)	6633.380	6633.380
	1413.900 579.794 8627.074	424.123 246.405 7303.908
(B) FROM BANKS: 1. CASH CREDIT FROM BANKS (Secured by first charge in favour of participating banks ranking pari-passu on the stocks and receivable and other Current Assets) 2. SHORT TERM DEMAND LOAN FROM BANK State Bank of Hyderabad, Hyderabad (Secured by pledge of SBH term deposits)
Total

Banking Relations :	Satisfactory
Auditors :	Raju and Prasad
	Chartered Accountant
Address :	401, Diamond House, Adj. Amruta Hills, Punjagutta, Hyderabad – 500 082, Andhra Pradesh, India.
Pan No:	AACFR2404H
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1800000000	Equity Shares	Rs. 10/- Each	18000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1733198119	Equity Shares	Rs. 10/- Each	17331.981 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		17331.981	17331.981
2] Reserve for future overburden removal		1578.238	2431.538
3] Reserves & Surplus		6119.075	5158.898
4] (Accumulated Losses)		0.000	0.000
NETWORTH		25029.294	24922.417
LOAN FUNDS
1] Secured Loans		8627.074	7303.908
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		8627.074	7303.908
DEFERRED TAX LIABILITIES		968.918	1238.878
TOTAL		34625.286	33465.203
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23801.038	21123.722
Capital work-in-progress		3121.198	2956.063
INVESTMENT		194.201	2968.701
DEFERREX TAX ASSETS		0.000	0.000
Advance action for overburden removal		2403.066	3751.356
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2402.109	3251.156
	Sundry Debtors	1653.393	1851.882
	Cash & Bank Balances	15500.547	8734.691
	Other Current Assets	278.478	327.589
	Loans & Advances	5241.166	5363.158
Total Current Assets		25075.693	19528.476
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	15506.886	10535.438
	Provisions	6288.285	7678.574
Total Current Liabilities		21795.171	18214.012
Net Current Assets		3280.522	1314.464
MISCELLANEOUS EXPENSES		1825.261	1350.897
TOTAL		34625.286	33465.203

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		44996791.607	37905.524	36291.052
Other Income		3343252.640	3049.542	4067.470
Total Income		48340044.247	40955.066	40358.522
Profit/(Loss) Before Tax		2901176.426	1171.994	3324.946
Provision for Taxation		1137180.038	414.541	1462.841
Profit/(Loss) After Tax		1763996.388	757.453	1862.105
Expenditures :
	Salaries wages and bonus	3636176.646	16673.870	16268.330
	Managerial remuneration	18631519.365	4.138	4.470
	Payment to auditor	4652.286	1.243	0.591
	Interest	1233.026	84.839	93.714
	Power and fuel	87692.868	1898.790	1993.007
	Depreciation and amortization	4801.395	3167.036	2986.414
	Other expenditure	1876162.486	14185.103	12123.473
	Consumption of stores and spares	4160250.192	3768.053	3563.577
	Insurance expenses	17036379.557	0.000	0.000
Total Expenditure		45438867.821	39783.072	37033.576

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	3.6	1.8	4.6
Net Profit Margin (PBT/Sales)	(%)	64.5	3.1	9.1
Return on Total Assets (PBT/Total Assets}	(%)	0.05	0.02	NA
Return on Investment (ROI) (PBT/Networth)		0.1	0.04	NA
Debt Equity Ratio (Total Liability/Networth)		0.8	0.7	NA
Current Ratio (Current Asset/Current Liability)		1.2	1.1	NA

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

In the year 1871, Dr. King of the Geological Survey of India discovered coal near the village of Yellandu in Khammamdistrict and one of the important coal seams bore his name. The Hyderabad(Deccan) Company limited incorporated in England acquired mining rights in 1886 to exploit coal found in Yellandu area. The present Company was incorporated on 23^rd December 1920 under the Hyderabad Companies Act as a public limited company with the name “The Singareni Collieries Company Limited (SCCL). It acquired all the asstes and liabilities of the Hyderabad (Deccan) Company Limited Best and Company acted as Secretaries and Selling Agents. The State of Hyderabad Purchased majority shares of the Company in 1945. From 1945 to 1949, the Hyderabad Construction Company limited, was acting as Manging agent. In 1949 this function was entrusted to Industrial Trust Fund by the then Government of Hyderabad. The controlling interest of the Company devolved on the Government of Andhra Pradesh in 1956 pursuant to the reorganization of States. Thus, the SCCL became a Government Company under the Companies Act in 1956.

Large-scale expansion of Singareni Collieries Company Limited was undertaken during the initial Five-Year plans. In 1960 the Government of India started its participation in the Equity of the Company and also started extending loan assistance. Thus since March 1960 it has been jointly owned by the Government of Andhra Pradesh and Government of India. In 1974 the Government of India transferred its share capital to the coal mines Authority Limited. The manner of extending financial assistance for expansion of Singareni Collieries Company Limited. By the Government of Andhra Pradesh, and the Government of India during V plan period was agreed upon in the Four party Agreement executed on 10^th June 1974. Subsequently, the Government of India decided to control its equity directly in Singareni Collieries Company Limited. Accordingly, agreement was concluded on 13^th December 1977. The Singareni Collieries Company Limited, the Government of Andhra Pradesh, the Government of India and Coal. India Limited were parties to the agreement. These two agreements are popularly called quadripartite agreements.

For financial and other assistance during VI, VII, VIII, IX and X Plan periods, separate agreements were executed on 31^st March, 1985, 10^th February 1989, 24^th September 1994, 11^th January 2002 and 19^th October 2004 between the Government of India, the Government of Andhra Pradesh and Singareni Collieries Company Limited. These agreement are called tripartite agreement.

The Company’s accredited function is to explore and exploit the coal deposits in the Godavari valley coalfield, which is the only repository of coal in South India. Mining activities of Singareni Collieries Company Limited are presently spread over four districts of Andhra Pradesh Viz. Adilabad, Karimnagar, Khammam and Warangal.

The studies of Geological Survey of India attribute as much as 16997 million tones of coal reserves in the Godavari valley coalfield. The inventory covers up to a depth of 1200 metres and it includes reserves confirmed, indicated as well as inferred.

The coal extracted by Singareni Collieries Company Limited in the Godavari valley up to the year 2004-2005 was about 721 million tones.

HIGHLIGHTS OF PERFORMANCE DURING JULY 2008:

1) Production was achieved 112% of target during July, 2008.

2) Company dispatched 113% of its target during the month of July, 2008.

3) Capacity utilization during the month was 92% as against the target of 82% which is 112% of the target.

4) The month of July, 2008 remained as the fourth ‘Strike Free Month’ during 2008-09. Singareni Collieries Company Limited has set up a record of 20 strike months since December, 2006.

FIXED ASSETS:

1. Lands:

i) Freehold

ii) Leasehold

2. Buildings:

i) Factory

ii) Others

3. Railway sidings

4. Plant and Machinery

5. Furniture and fixtures

6. Mine development

7. Vehicles

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 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.49.85
UK Pound	1	Rs.76.60
Euro	1	Rs.64.68

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	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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