MIRA INFORM REPORT

Report Date :

17.09.2008

IDENTIFICATION DETAILS

Name :	TEXMACO LIMITED
Registered Office :	Belgharia, Kolkata-700 056, West Bengal
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	04.08.1939
Com. Reg. No.:	21-9800
CIN No.: [Company Identification No.]	L99999WB1939PLC009800
TAN No.: [Tax Deduction & Collection Account No.]	CALT02779A
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers of Textile Machinery, tools, Steel Ingots and Castings, Chemical Plant and Boilers.

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 12000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Belgharia, Kolkata – 700 056, West Bengal, India
Tel. No.:	91-33-25391631 / 1202 / 1613 / 1201 / 1713/ 5392448
Fax No.:	91-33-25392448
E-Mail :	texsvpcom@texmaco.in president@texmaco.in texed@texmaco.in texsvpsf@texmaco.in texsvpcom@texmaco.in texsvprs@texmaco.in texaprs@texmaco.in texsvpstrl@texmaco.in texvpstri@texmaco.in texsvpped@texmaco.in svphed@texmaco.in texedp@texmaco.in svpdelhi@texmaco.in texmaco_chennai@vsnl.com
Website :	http://www.texmacoindia.com
Corporate Office :	Birla Building, 9 /1, R. N. Mukherjee Road, Kolkata - 700 001, West Bengal
Tel. No.:	91-33-2204379
Fax No.:	91-33-2205833
Factory :	Engineering Works v Belgharia, Kolkata, West Bengal, India v Agarpara, West Bengal, India v Sodepur, West Bengal, India v Panihati, West Bengal, India
Regional Offices:	Located at :- v Mumbai, Maharashtra, India v Coimbatore, Tamilnadu, India v Chennai, Tamilnadu, India v New Delhi, India

DIRECTORS

Name :	Dr. K. K. Birla
Designation :	Chairman
Name :	Mr. Saroj Kumar Poddar
Designation :	Executive Vice Chairman
Date of Birth/Age :	60 years
Qualification :	B.Com. (Hons.)
Experience :	37 years
Date of Appointment :	01.01.2006
Previous Employment :	Poddar Heritage Investments Limited
Name :	Mr. B. P. Bajoria
Designation :	Director
Name :	Mr. H. C. Gandhi
Designation :	Director
Name :	Mr. A. C. Chakrabortti
Designation :	Director
Name :	Mr. B. Rai
Designation :	Director
Name :	Mr. Manish Gupta
Designation :	Director
Name :	Dr. H. Sadhak
Designation :	Director
Name :	Mr. S. Dhasarathy
Designation :	Director
Name :	Mr. A. K. Nanda
Designation :	Whole time Director
Name :	Mr. D. H. Kela
Designation :	Whole time Director

KEY EXECUTIVES

Name :	Shri Ramesh Maheshwari
Designation :	President and Chief Executive Officer
Date of Birth/Age :	73 years
Qualification :	M. Com. LLB
Experience :	50 years
Date of Appointment :	01.02.1962
Previous Employment :	F & C Osler (India) Limited and Sitster Concerns
Name :	Shri A. K. Vijay
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2008

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	5424890	52.54
Banks, Insurance Cos., and Fl's	543223	5.27
Mutual Funds and U.T.I	1498781	14.51
Corporate Bodies	13904321	13.47
NRI/OCB	275086	2.66
Indian Public	1148789	11.13
Others	43259	0.42
Total	10325760	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Textile Machinery, tools, Steel Ingots and Castings, Chemical Plant and Boilers.

Products :

The Generic Names of Principal Products/Services of the Company is:-

Product Description	Wagons
ITC Code	8606

Product Description	Steel Castings
ITC Code	8607

Product Description	Structurals
ITC Code	7308

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ring frames, doublers and worsted ring frames	Nos.	1035	1173	--
Carding Engines	Nos.	180	300	--
Draw Frames	Nos.	410	410	--
Speed frames	Nos.	--	--	--
Steel Castings & Ingots (including Draft Gear 4000 sets)	MT	9600	9600	17331
Power Tilller/ Reaper	Nos.	--	--	226
Wagons	MT	38400/39000	60000	89551
Water tube boilers and package boilers	Nos.	36	36	2
Sugar mill machinery (complete plant 1200 tons Crushing Capacity)	Nos.	2	2	242 MT
Structurals	MT	20400	20400	4031
Points & Crossings	Sets	--	2000	--
Site Fabrication and Erection	MT	--	--	731
Pressure Vessels, Heat exch. & Chemical Machineries	MT	1500	1500	301
Diesel Road Rollers	Nos.	400	400	--
Generation of Hydro electric Powers	KWH	--	--	6996

GENERAL INFORMATION

Suppliers :

v Bright Engineering Industry

v Bhola Trading

v FABCO

v Laxminarayan Engineering works

v Lalbaba Industrial Corporation

v Main Engineering Concern

v Mamoni Industries

v P.D Engineering Concern

v Rajendranath Kundu and Sons

v Saket Enterprises

v Spares and Equipments

v S.S Enterprises

v Star Electric

v Sas Industries

v Weldmen Synergic Private Limited

No. of Employees :

2014

Bankers :

State Bank of India

Facilities :

SECURED LOANS	31.03.2008 Rs. In Millions
From Banks : Secured by hypothecation of Finished Goods and part of Raw Materials, Stock-in-Process, Stores, Book Debts, etc. and second charge on Fixed Assets Cash Credit Accounts / WCDL / FCNR (B)	337.355
Secured by Letter of Credit opened by the Buyer from State Bank of India	37.800
Project Loans :
From State Bank of India	188.153
From Landesbank Wutterberg, Germany	45.682
From IREDA-Secured by Exclusive first charge of Immovable/ Movable Properties of Neora hydro project both existing and future subject to prior charge of banks on specified Current assets	52.111
Loans form Others- HDFC Bank Secured by hypothecation of Vehicle	0.048
Loan from Others - Secured by Bank Guarantee under Subsidised Industrial Housing Scheme	0.168
Total	661.317
UNSECURED LOANS	31.03.2008 Rs. In Millions
From Body Corporates	1.574
Fixed Deposit from employees/ex-employees	2.004
Advance against sale of land	60.000
Total	63.578

Banking Relations :	Satisfactory
Auditors :
Name :	K. N. Gutgutia and Company Chartered Accountants
Address :
Subsidiaries :	v High Quality Steels Limited v Shree Export House Limited v Macfarlane and Company Limited v Texmaco Machines Private Limited v Neora Hydro Limited - 50% Joint Venture.
Associates :	Lionel India Limited

CAPITAL STRUCTURE

As on 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
1,40,00,000	Equity Shares	Rs.10/- each	Rs.140.000 Millions
40,000	Preference Shares	Rs.100/- each	Rs.4.000 Millions
60,000	Shares	Rs.100/- each	Rs.6.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,03,25,760	Equity Shares (Including 375000 Equity Shares allotted for consideration other than cash) Excluding 996 Equity Shares lying in obeyance – NSDL Transit Case (Previous year 996 Equity Shares)	Rs.10/- each	Rs.103.257 Millions
Add :	Forfeited Shares		Rs.0.001 Million
	Equity Share Capital (Suspense) (752549 shares (Net) of Rs. 10/- each to be issued to the share holders of transferor Co. without payment being received in cash as per scheme of arrangement)		Rs. 7.525 Million
274050	6% Redeemable Non-Cumulative Preference Shares (To be issued to the Preference Share holders of Transferor Company namely Evershine Merchants Private Limited)	Rs. 100/- each	Rs. 27.405 Millions
	Total		Rs. 138.188 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		138.188	103.258	103.258
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2297.370	1528.150	1298.336
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2435.558	1631.408	1401.594
LOAN FUNDS
1] Secured Loans		661.317	454.251	533.070
2] Unsecured Loans		63.578	78.993	83.168
TOTAL BORROWING		724.895	533.244	616.238
DEFERRED TAX LIABILITIES		23.134	22.452	15.632
TOTAL		3183.587	2187.104	2033.464
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2242.115	1191.122	750.120
Capital work-in-progress		0.000	0.000	179.626
INVESTMENT		936.702	521.213	550.187
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1093.919	919.754	361.086
	Sundry Debtors	1380.300	1222.154	636.090
	Cash & Bank Balances	42.555	70.967	177.225
	Other Current Assets	10.847	8.662	7.950
	Loans & Advances	789.744	688.485	1102.827
Total Current Assets		3317.365	2910.022	2285.178
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3154.455	2382.624	1560.695
	Provisions	170.047	80.270	192.317
Total Current Liabilities		3324.502	2462.894	1753.012
Net Current Assets		[7.137]	447.128	532.166
MISCELLANEOUS EXPENSES		11.907	17.641	21.365
TOTAL		3183.587	2187.104	2033.464

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		6934.795	3739.566	3115.327
Other Income		123.108	454.049	25.930
Total Income		7057.903	4193.615	3141.257
Profit/(Loss) Before Tax		1007.212	431.354	287.316
Provision for Taxation		309.910	139.120	90.615
Profit/(Loss) After Tax		697.302	292.234	196.701
Total Export		24.335	38.879	95.717
Imports :
	Raw Materials	284.186	157.493	21.294
	Stores & Spares	1867.989	544.965	109.404
Total Imports		2152.175	702.458	130.698
Expenditures :
	Operating Cost	5871.501	3261.273
	Interest	90.587	40.222	2853.941
	Depreciation & Amortization	88.603	52.309
	Other Expenditure	0.000	408.457
Total Expenditure		6050.691	3762.261	2853.941

QUARTERLY RESULTS

PARTICULARS	30.06.2008 1^st Quarter
Sales Turnover	1968.300
Other Income	8.700
Total Income	1977.000
Total Expenditure	1617.800
Operating Profit	359.200
Interest	11.900
Gross Profit	347.300
Depreciation	24.500
Tax	95.500
Reported PAT	228.200

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.33	0.42	0.47
Long Term Debt-Equity Ratio	0.07	0.13	0.25
Current Ratio	0.91	1.03	1.13
TURNOVER RATIOS
Fixed Assets	3.78	2.91	2.87
Inventory	9.31	7.43	8.04
Debtors	7.20	4.69	6.58
Interest Cover Ratio	8.34	5.20	4.42
Operating Profit Margin(%)	13.08	12.12	10.34
Profit Before Interest And Tax Margin(%)	12.13	11.02	9.25
Cash Profit Margin(%)	8.32	7.08	5.94
Adjusted Net Profit Margin(%)	7.37	5.98	4.85
Return On Capital Employed(%)	45.41	27.31	21.28
Return On Net Worth(%)	36.85	20.84	16.24

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated in the year 1939 at Kolkata in West Bengal having Company Registration Number 9800.

The hard times of company began in 1987-88 when the company started incurring losses. The losses started accumulating, as a result the BIFR declared the company as a sick unit. ICICI worked out a rehabilitation package for the company.

In 1994-95, the company managed to come out of the red, and wrote-off a part of its term loans by transferring the cement division to the Zuari Agro Chemical division. During the same year Subject earned foreign exchange worth Rs.236.700 millions of which export of goods accounted for Rs.66.700 millions. Company is negotiating a joint venture in collaboration with Hawa Machinery, Japan, which has been supplying technology to the company for the past five years.

In 1998-99, the company bagged a prestigious order from Noell Stahl-und Maschinenbau GmbH, Germany for supply of hydraulic gates and allied equipments to Kali Gandaki H E P project in Nepal, which progressed satisfactorily and is nearing completion.

The year has been an excellent year of growth and prosperity for the Company. The Gross Turnover at Rs.9371.800 Millions was higher by 97% compared to Rs.4761.300 Millions in the previous year. It does not include the value of free-supply inputs including steel and components of over Rs.2050.000 Millions provided to the Company by Indian Railways and other clients for some large value contracts. The compound annual growth of the Company's turnover has been more than 48% over last 5 years. 

The Gross Profit for the year (PBDT) increased by 127% to Rs.1095.800 Millions against Rs.483.700 Millions, and profit before tax (PBT) by 133% to Rs.1007.200 Millions against Rs.431.400 Millions in the previous year. The Net Profit at Rs.690.900 Millions was higher by 143% compared to Rs.284.800 Millions in the previous year, after providing enhanced Tax liability of Rs.309.900 Millions against Rs.139.100 Millions only in the previous year. The Deferred Tax Liability for the year has been created in the Profit and Loss Account in accordance with the Accounting Standard 22 'Accounting for taxes on Income', issued by the Institute of Chartered Accountants of India. 

Consequent to the merger of Shree Export House Limited, Neora Hydra Limited and Evershine Merchants Private Limited in terms of an order passed by the Hon'ble High Court, Kolkata, effective from 1 st August, 2007, the Share Capital of the Company stands enhanced from Rs.103.258 Millions to Rs.110.783 Milllions. The aforesaid results for the year have taken into account the said merger. 

THE MANAGEMENT DISCUSSION AND ANALYSIS: 

The Management had taken a series of measures to encash the unprecedented opportunities thrown up by reforms in the Rail Sector, where it enjoys undisputed leadership over the years. These have started yielding result as reflected in the spectacular performance of the company during the year. The management has further intensified its efforts to build the Company's engineering strength and competitive ability to make a thrust in the area of hi-tech, new design and commodity specific wagons. Efforts are underway to fill the market niche in its other core competence areas through continuous development of infrastructure and forging new alliances with renowned multi-national corporations. 

The Management notes with concern the current inflationary spiral in the wake of oil price surge to over $ 120/bl, credit squeeze, world-wide food shortage, steep escalation in the cost of basic minerals, steel etc. It is vigilant on all fronts and adopting a prudent course to safeguard its working from the economic uncertainties as best as possible. 

 HEAVY ENGINEERING DIVISION: 

 ROLLING STOCK: 

The Rolling Stock Division of the Company excelled in turning out the best-ever performance during the year, contributing handsomely to the operating results. There was a record turn-out of 4129 wagons (VUs) during the year as against 2843 wagons in the previous year, an increase of around 45% comprising deliveries to both Indian Railways and private operators. In recognition of its outstanding performance in the industry, the company was awarded the highest-ever order by the Railway Board for 2539 wagons against 2007-08 RSP Besides, the Railways placed additional orders on the company for 692 nos. comprising special wagons, optional quantity and certain wagons transferred from non-performers in the industry. Significantly, there is a progressive switch-over from conventional to special purpose wagons being procured by Railways. During the year, the company delivered 325 nos. Stainless Steel BOXNLW wagon to Indian Railways. 

There has been a steady flow of orders to the Company under Public Private Partnership (PPP) scheme of the Indian Railways. Altogether, the total orders booked by the Company during the year were for 6814 wagons, valued approx. Rs.11000.000 Millions including 3583 wagons valued Rs.7750.000 Millions from private parties. (It bears mention that the value of the Railway orders is exclusive of steel, wheelsets and bearings, which are supplied free of cost by Indian Railways). The Company delivered a series of Container Freight Rakes as also wagons for bulk transportation of alumina, food grains, caustic soda, etc. to private parties during the year. 

Recently, Indian Railways have floated a tender for procurement of 14412 wagons against 2008-09 RSP, which is due to be opened on May 29,'08. The Company hopes to get a substantial share thereof based on its performance in keeping with the tender conditions. 

According to the current projections, IR traffic is expected to grow from 794 mn tons in FY 2008 to 1 100 mn tons by the end of the current 5-Year Plan in 2012 . In the budget for FY 2008-09, there is a clear charter of Indian Railways to increase capacity for its 'bread and butter' freight business. The budget envisages investment of about Rs.750 bn over the next 7 years to augment capacity on a Dedicated Freight Corridor linking Delhi, Mumbai, Chennai and Kolkata, and the lines to and from the major ports. Coal accounts for 40% of freight revenues of Indian Railways, other major contributors being iron ore, steel, cement, container traffic, and foreign trade movement to and from gateway ports. The traffic in these sectors is slated to double by 2011-12. Hence, there would be a pressing need for adding capacity for freight. The company expects to play a pivotal role in the Indian Railways' new visionary moves. 

With a view to encouraging investment in modernizing and upgrading the designs, the Railways have announced a new policy for simplifying the process of certification and acceptance of new wagons to the builders' own designs, whilst protecting intellectual property rights of the suppliers. It is coupled with Wagon Leasing Policy and the Liberalized Wagon Investment Scheme to attract investment in special purpose, high capacity wagons. Accordingly, the company has geared to move fast forward in this direction, and as reported earlier it has already signed a Memorandum of Agreement with United Group Limited, Australia's largest end-to-end rail technology solutions provider.

Coaches and Loco Components: 

 The Company is also embarking on the manufacture of EMUS and Loco Shells. The Railway Board has placed a trial order on the Company for manufacture and supply of one EMU rake valued at Rs.67.000 Millions. The planning for manufacture thereof is under way. Further, the Company has received a developmental order from Chittaranjan Locomotive Works (CLW) valued at Rs.38.000 Millions for fabrication of 8 nos. body shells for WAG-9 electric locomotives. The preparatory work thereon has been taken up. 

HYDRO MECHANICAL EQUIPMENT and STRUCTURALS: 

The turnover for the year at Rs.600.000 Millions was marginally higher than that of the previous year. It would have been appreciably higher but for the constraints in execution, especially due to non-availability of working fronts from the civil contractors of the customers. The project work was generally affected owing to various geological, environmental, and re-habilitation problems faced by the Project Authorities. It is expected that there would be a substantial increase in turnover in the current year. 

During the year, the Division bagged an order valued approx. Rs.420.000 Millions for Loharinag Pala H.E. Project (600 MW) of NTPC in Uttaranchal, which is the first project the Company would be executing for NTPC in hydel sector. 

The year marked completion of the supply of hydro-mechanical equipment and successful commissioning of 510 MW Teesta Stage-V H.E. Project in Sikkim. The Project Authority, NHPC Limited, has formally acknowledged the Company's performance under 'Challenging Circumstances' and conveyed compliments and congratulations to the Company's team. The work on Sewa Stage-II H.E. Project (120 MW), J and K, is nearing completion, while that on Teesta Low Dam H.E. Project (132 MW), West Bengal, is progressing satisfactorily. In the prestigious Subansiri Lower H.E. Project (2000 MW), Arunachal Pradesh, the progress is on schedule. 

Since power continues to be a major constraint in achieving double digit growth of the economy, the Government of India is according high priority for development of hydel power in the 11th and 12th 5-year plans. NHPC, which is a nodal organization of the Government of India for fulfilling the target, has announced its plan to become a 10,000 MW firm by the end of the 11th Plan from its current capacity of about 5,000 MW. The Company is ideally placed to participate in this high growth sector. 

The division is also exploring the possibility of diversification in Ship Cranes and Shipbuilding, and Railway Bridges, which have good business potential. 

 PROCESS EQUIPMENT DIVISION: 

The Division achieved a turnover of approx. Rs.400.000 Millions It has executed orders of Cane Milling Plant of size 39'x78'and also High Pressure Boiler of 90 T/Hr. capacity, having Pressure of 67 Kg/cm2 at 510 degree Celsius Temperature. The supply and erection of 3 Nos. Horton Spheres of 16.18 M. Diameter for Indian Space Research Organization (ISRO) have been completed. Orders for 3 Nos. large size Buffer Vessels, each of 3.2 M. Diameter x 28.5 M. Long and weighing about 105 MT for Praxair India Limited for storage of gaseous oxygen, are under execution. The Division has also booked orders to supply 16 nos. Buffer Vessels of different sizes which would be executed in the current year. 

 STEEL FOUNDRY DIVISION: 

The Foundry achieved the highest-ever production of 19792 tons and turnover of Rs.1734 mn, which are 47% and 33% higher respectively compared to the previous year. It has maintained its leadership in the supplies of steel castings for manufacture of Rolling Stock. The working of the new State-of-the-Art Foundry equipped with Kunkel Wagner Plant from Germany has fully stabilized. 

The quality of castings produced in the new Foundry meets international standards. Its reputation is gaining world-wide recognition, and there has been a stream of export enquiries. In fact, the Division has booked some export orders for High-Tech Castings and already exported two pilot batches of casting, one to USA and other to Australia. 

The Company is actively working on expansion of the new foundry and has also undertaken modernization-cum-expansion of the old foundry. It is expected to be completed by the middle of 2009, which will raise the capacity of the foundry to 40000 tons per year. 

During the last quarter of the year, there has been a steep escalation in the cost of major inputs for steel making which has put the margins under pressure. 

AGRO MACHINERY: 

During the year, the Ministry of Agriculture, Govt. of India, enforced requirement of a new Emission Certificate (Bharat Trem-III) for Power Tillers. This resulted in disruption of the off-take, which was 254 Nos. only valued at Rs.21.700 Millions. However, the new Emission Certificate has since been acquired, and the Division is well-poised to receive good orders in the current year. 

 MINI HYDEL POWER: 

The Company's JV for 3 MW Mini-Hydel Power Project on river Neora in Darjeeling Dist. has been merged with the Company as per approval of the Scheme of Merger by the Hon'ble High Court of Kolkata, effective from 1 st August 2007. The project has been facing certain problems on account of inadequate water discharge during the lean/semi-lean season (October-May) and also technical issues relating to the turbines supplied by M/s Alstom. All efforts are being made to resolve the problems before arrival of Monsoon to be able to generate full power during the peak season. M/s WBIDC have granted the capital subsidy of Rs.25.000 Millions to the Company under the State Subsidy Scheme for Mini-Power Project, and the amount has since been received by the Company in the current year.

EXPORTS: 

The exports of the Company during the year were approx. Rs.3150.000 Millions. The first export shipment of hi-tech Industrial and Railway Castings from the new State-of-the-Art-Foundry started during the year to renowned buyers in USA and Australia. The approval of AAR for export of Cast Steel Bogies for wagons is expected to be received in the next couple of months. 

REAL ESTATE: 

The decision of the Hon'ble Supreme Court of India on the legal issues relating to Birla Mills Land at Delhi is still awaited. The hearing has been completed, and the decision has been reserved which is expected to be announced in due course. The development plans of the property will be undertaken after the decision of the Hon'ble Supreme Court of India.

During the year, under a Scheme of Amalgamation approved by the Hon'ble High Court of Calcutta, Evershine Merchants Private Limited, owning a property in Gurgaon, comprising of an area of 66,500 Sq.ft. (approx.), has been merged with the Company. It has been rented out to multinationals and other Companies of international repute with suitable lock-in-period, yielding an income of Rs.90.000 Millions per annum, going upto Rs.100.000 Millions per annum next year, with a provision of escalation in rent thereafter. The property is at a prime location having good prospect for long term capital appreciation.  

 Fixed Assets:

• Land (Including Lease Hold)
• Building
• Roads
• Railway Sidings
• Plant and Machinery
• Electrical Machinery
• Office Equipments
• Furniture and Fittings
• Vehicles

AS PER WEBSITE

Profile:

Subject has emerged as a leading engineering complex in India over the decades. It is engaged in serving Core Sector Projects and Process Industries within the country and abroad. It has to its credit successful execution of several prestigious projects financed by international agencies such as World Bank and Asian Development Bank etc.

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.46.63
UK Pound	1	Rs.83.76
Euro	1	Rs.66.49

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	8
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		59

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

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