MIRA INFORM REPORT

Report Date :

22.08.2011

IDENTIFICATION DETAILS

Name :	MCNALLY BHARAT ENGINEERING COMPANY LIMITED
Formerly Name:	PRABHUDAYAL RAMKRISHNA PRIVATE LIMITED
Registered Office :	4, Mangoe Lane, 7^th Floor, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.07.1961
Com. Reg. No.:	21-25181
Capital Investment / Paid-up Capital :	Euro 4664072
CIN No.: [Company Identification No.]	L45202WB1961PLC025181
TAN No.: [Tax Deduction & Collection Account No.]	BLRM08976C / RCHM01882G
PAN No.: [Permanent Account No.]	AABCM9443R
Legal Form :	A public limited liability company. The company's shares are listed on the Stock Exchanges
Line of Business :	Manufacturing of Industrial Machinery and Equipment and also in Consultancy and Industrial Turnkey Projects.
No. of Employees :	Around 885 (Approximately)

RATING & COMMENTS

Rating :

A (58)

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 :	Euro 6821411
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered/Corporate Office :	4, Mangoe Lane, 7^th Floor, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-2213 8901-05 / 08 / 22480847 / 0919 / 65500725-39
Fax No.:	91-33-22480340 / 22485016 / 22303519
E-Mail :	mbecal@mbecl.co.in dbc@mbecl.co.in
Website :	http://www.mcnallybharat.com
Corporate Office :	Ecospase, 11F/12 (Old Plot No. AA-II/Blk-3), New Town, Rajaarhat, North 24, Parganas, Kolkata - 700156, West Bengal, India
Tel. No.:	91-33-30141111 / 66281111
Fax No.:	91-33-30142277 / 66282277
E-Mail :	corporate@mcnallybharat.com mbecal@mbecl.co.in mbe.corp@mbecl.co.in
Work and Sales Office :	· PO Kumardhubi, Dist. Dhanbad, Jharkhand 828203, India Phone : 91-6540-273010 / 11 / 16 / 272235 / 197215 Fax : 91-6540-273024 / 273015 Email : mse.kdb@mbecl.co.in · Plot No.:M-16, ADDA Industrial Area, PO R.K.Mission, Asansol – 713305, West Bengal, India Phone : 91-341-6554031 / 6554490 Email : mse.asn@mbecl.co.in · 3rd Floor, Maruthi Towers, 9th Main, Ex. Chairman Layout, Banaswadi Main Road, Bangalore 560034, India Phone : 91-80-41153781-83 Fax : 91-80-41153784 Email : mse.blr@mbecl.co.in · Chhani Road, Baroda-390 002, India Phone : 91-265-2793650 / 2780791-95 Fax : 91-265-2791914 Email: mse.brd@mbecl.co.in
Branch offices :	Located at: · Mumbai · Ernakulam · Kolkata · Nagpur · Secunderabad · Chennai · Visakhapatnam · Vijaywada

DIRECTORS

As on 30.09.2010

Name :	Mr. Deepak Khaitan
Designation :	Chairman
Date of Appointment :	15.09.2008
Name :	Mr. Shanti Prasad Singhi
Designation :	Vice Chairman
Date of Appointment :	10.09.2007
Name :	Mr. Virendra Kumar Verma
Designation :	Director
Name :	Mr. Sanjay Kumar Pasari
Designation :	Director
Name :	Mr. Utsav Parekh
Designation :	Director
Date of Appointment :	10.09.2007
Name :	Mr. Chandrakant Pasari
Designation :	Director
Date of Appointment :	15.09.2008
Name :	Mr. Srinivash Singh
Designation :	Director (upto June 17, 2010)
Name :	Mr. Amritanshu Khaitan
Designation :	Director
Name :	Mr. Subir Ranjan Dasgupta
Designation :	Director
Name :	Mr. Asim Kumar Barman
Designation :	Director
Date of Appointment :	01.12.2009

KEY EXECUTIVES

Name :	Mr. D. Chatterjee
Designation :	Company Secretary
Name :	Mr. Prabir Ghosh
Designation :	President and Chief Executive Officer
Name :	Mr. Prasanta Kumar Chandra
Designation :	President (Operation)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7450	0.02
Bodies Corporate	10040343	32.29
Sub Total	10047793	32.31
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10047793	32.31
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4070429	13.09
Financial Institutions / Banks	1940	0.01
Insurance Companies	1781635	5.73
Foreign Institutional Investors	3412148	10.97
Sub Total	9266152	29.80
(2) Non-Institutions
Bodies Corporate	4829575	15.53
Individuals
Individual shareholders holding nominal share capital up to Euro 1515	3214925	10.34
Individual shareholders holding nominal share capital in excess of Euro 1515	3364886	10.82
Any Others (Specify)	370487	1.19
Non Resident Indians	340553	1.10
Clearing Members	29934	0.10
Sub Total	11779873	37.88
Total Public shareholding (B)	21046025	67.69
Total (A)+(B)	31093818	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	31093818	-

BUSINESS DETAILS

Line of Business :	Manufacturing of Industrial Machinery and Equipment and also in Consultancy and Industrial Turnkey Projects.
Products :	· Material Handling and Conveying Plant / Machinery · Crushing and Screening Plant / Machinery / Spares · Ball Mills - Plant / Machinery / Spares
Product Description :	· Turnkey project in Bulk Material Handling · Turnkey Projects in mineral Benefication · Manufacture and sale of equipments for such projects

GENERAL INFORMATION

No. of Employees :

Around 885 (Approximately)

Bankers :

· Bank of India

· IDBI Bank Limited

· State Bank of India, Mumbai – 400 021, Maharashtra, India

· Canara Bank

· United Bank of India

· UCO Bank

· Oriental Bank of Commerce

· Indian Overseas Bank

· Union Bank of India

· ICICI Bank Limited

· ING Vysya Bank Limited

· Axis Bank Limited

· The Karur Vysya Bank Limited

· ANZ Grindlays Bank Limited, Kolkata – 700 001, West Bengal, India

Facilities :

Secured Loans	As on 31.03.2010 In Euro	As on 31.03.2009 In Euro
From Banks:
Overdraft including Working Capital Demand Loans (including interest accrued and due Rs. Nil; Secured on a pari passu basis by the current assets of the Company including that of the erstwhile Products Division of the Company and immoveable and moveable assets located at the manufacturing Unit 1 of the Factory Premises of the erstwhile Kumardhubi unit of the Company.	16504379	14270318
Term Loans Term loan from ICICI Bank is secured by first charge over the immoveable and movable assets at the erstwhile Asansol and Bangalore units of the Company and the equipments to be procured under the facility and term loan from DBS Bank is secured by specific charge on certain fixed assets and personal guarantee of the Promoter Director	13764621	8333333
Car Loans (Secured by hypothecation of Motor Vehicles acquired out of these loans).	46545	20985
From Others:
Equipment Finance Loans (Secured by hypothecation of the tangible movable assets acquired out of these loans).	129970	238288
Car Loans (Secured by hypothecation of Motor Vehicles acquired out of these loans).	9151	000
Total	30454666	22862924

UNSECURED LOAN	As on 31.03.2010 In Euro	As on 31.03.2009 In Euro
Short Term Loan
From banks (Overdraft)	000	19757
Total	000	19757

Banking Relations :

Satisfactory

Auditors :

Lovelock and Lewes

Chartered Accountant

Solicitors :

· Khaitan and Company

· S K Sawday and Company

Memberships:

Confederation of Indian Industry

Associates/Subsidiaries :

· MBE Holding Pte Limited

· Mcnally Sayaji Engineering Limited

· Mcnally Bharat Equipments Limited

· Mcnally Bharat Infrastructure Limited

· EWB Kornyezetvedelmi Kft, Hungary

· MBE Minerals Technologies Private Limited, Singapore

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity shares	0.15 Euro Each	6000000

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31093818	Equity shares	0.15 Euro Each	4664072

Note:

Of the above Shares:

i) 486100 Shares were allotted as fully paid-up pursuant to Contracts without payments being received in cash

ii) 1257930 Shares were issued as fully paid-up Bonus Shares by capitalization of General Reserve

FINANCIAL DATA

[all figures are in EURO]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		4664072	4664072	4346530
2] Share Application Money		000	000	000
3] Reserves & Surplus		29442984	24986575	16415984
4] (Accumulated Losses)		000	000	000
5] Share Warrant Application Money		000	000	3176561
NETWORTH		34107056	29650647	23939075
LOAN FUNDS
1] Secured Loans		30454666	22862924	7674227
2] Unsecured Loans		000	19757	1816818
TOTAL BORROWING		30454666	22882681	9491045
DEFERRED TAX LIABILITIES		1419439	1263454	172470
TOTAL		65981161	53796782	33602590
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13245924	6263318	9385181
Capital work-in-progress		11106	846166	2815136
INVESTMENT		23752636	11720484	2228924
DEFERREX TAX ASSETS		000	000	000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3995757	862681	3879818
	Sundry Debtors	150660742	95059757	56229560
	Cash & Bank Balances	4942257	4218787	10682000
	Other Current Assets	12226772	26840742	000
	Loans & Advances	31729106	15878696	15149772
Total Current Assets		203554634	142860663	85941150
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64115015	43649712	25366787
	Other Current Liabilities	108412454	62994575	40298863
	Provisions	2008560	1202454	1102151
Total Current Liabilities		174536029	107846741	66767801
Net Current Assets		29018605	35013922	19173349
MISCELLANEOUS EXPENSES		000	000	000
Others		(47110)	(47108)	000
TOTAL		65981161	53796782	33602590

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sale of Equipment and Contract Revenue	224904530	146663196	82845636
		Other Income	453136	827121	496393
		TOTAL (A)	225357666	147490317	83342029
Less	EXPENSES
		Materials	136233287	92776454	45422409
		Increase / (Decrease) in jobs-in-progress	000	000	413318
		Outsourcing Expenses to outsiders for job Work.	41726469	25265454	14463878
		Assets / Advance / Debts written off/ provision / liabilities written back	164848	272651	(173545)
		Profit on transfer of the products Division of the Company.	000	(3495742)	000
		Other Expenses	33794257	19558287	16632318
		TOTAL (B)	211918861	134377104	76758378
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13438805	13113213	6583651
Less	FINANCIAL EXPENSES (D)		4620863	4964969	1347530
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8817942	8148244	5236121
Less/ Add	DEPRECIATION/ AMORTISATION (F)		750878	365272	341439
	PROFIT BEFORE TAX (E-F) (G)		8067064	7782972	4894682
Less	TAX (H)		2810489	2613745	1500743
	PROFIT AFTER TAX (G-H) (I)		5256575	5169227	3393939
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10826045	6618515	3787151
Less	APPROPRIATIONS
		Proposed Dividend	706681	588893	471121
		Tax on Dividend	93484	100075	80061
		Proposed Dividend for last year	000	000	9636
		Tax on Dividend for last year	000	000	1757
		Transfer to General Reserve	274242	272727	000
	BALANCE CARRIED TO THE B/S		15008213	10826045	6618515
	IMPORTS
		Components, Spare parts and Stores	12185212	1699439	1702363
		Capital Goods	814348	1482136	13015
	TOTAL IMPORTS		12999560	3181575	1715378
	Earnings Per Share (Euro) Basic Diluted		0.16 0.16	0.16 0.16	0.12 0.11

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.33	3.50	4.07
Net Profit Margin (PBT/Sales)	(%)	3.58	5.31	5.90
Return on Total Assets (PBT/Total Assets}	(%)	3.72	5.21	5.13
Return on Investment (ROI) (PBT/Networth)		0.23	0.26	0.20
Debt Equity Ratio (Total Liability/Networth)		6.01	4.40	3.18
Current Ratio (Current Asset/Current Liability)		1.16	1.32	1.28

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND BUSINESS PERFORMANCE

2009-10 turned out to be yet another record year during which the company achieved highest ever Turnover and profits. The total income for the year was Euro 225303030 as against Euro 150909090 during the previous year.

ACTIVITY HIGHLIGHTS

The company implemented the Oracle based ERP system across all Divisions during the year. PWC were the implementing Consultants.

The company has signed a collaboration agreement in January 2010 with Hyflux, Singapore for jointly bidding for desalination plants in the power sector.

During the year they appointed KPMG for valuable Advisory assistance in Strategic and Business Planning. They have submitted their Report covering Business Plan Projections for the 5 year period 2010-15 and have also assessed additional business from new businesses with the goal to achieve Euro 1060606060 turnover for the Group by 2015. Their study also involved preparing the Financing strategy for their growth Plans and also review the key Business Process capabilities for the EPC business.

They had also appointed PWC to propose recommendations on organization transformation and re-structuring. Their scope of work covered developing the organizational structure to handle future growth, design of Performance Management System, Talent and Leadership development and change management.

They engaged Ernst and Young for a diagnostic review of operational processes across the company.

Three new Business divisions were set up during the year. The Cement EPC group have signed an MOU with KHD Humboldt International to jointly bid for turnkey contracts in setting up cement plants, where Humboldt provides the technology and key products and MBE executes the Project. The Oil and Gas group is focusing primarily on the Civil and Mechanical Packages and plans to graduate in the next 2 to 3 years to executing EPC projects in Refineries. The Nuclear Group is focused on obtaining EPC projects in Non Nuclear Island such as BOP for the forthcoming Nuclear Power Plants being set up by NPCIL and foreign companies.

The International Division has been formed to primarily focus on Middle East, South East Asia, Bangladesh and African countries for EPC projects and also in countries where MBE CMT Group (formerly KHD Humboldt Wedag) has a strong presence to leverage the Humboldt brand and customer base. The company emphasizes on Human Resource Development and has a flag-ship "Executive Trainee" program where fresh Engineers from premier Engineering Colleges are hired and honed through a rigorous one-year orientation program. On completion, they are absorbed directly in the Middle Management category. The organization is invited for campus visits on prestigious first-day slots at all the targeted institutions.

SUBSIDIARIES

McNally Sayaji Engineering Limited.

During the year the company scaled new heights and recorded a sales turnover of Euro 47121212, which was an increase of over 50% over sales in 2008-09 amounting to Euro 30909090. Pre Tax profit grew by 15 % to Euro 5360606, as compared to Euro 4674242, in the previous year while post tax profits at Euro 3540909 registered a growth of 20%. Some of the major orders received during the year:

· Order from MSPL for equipment for 150 TPH iron ore beneficiation plant, valued at Euro 2121212.

· Order from International Mineral Trading for Ball Mill, Scrubbers, Feeders valued at Euro 1363636.

· Export order from Vale, Oman for slurry pumps

· Order from HEC for coke bridge crusher valued at Euro 810606.

The new plant at Malur near Bangalore commenced production from December 2009. The Savli plant near Baroda is under construction and is expected to be on stream in the current financial year. During the year, the Authorised Share Capital of the Company has been increased from one crore equity shares amounting to Euro 1515151 to Five Crore equity shares amounting to Euro 7575757 to enable the Company to issue further securities for the purpose of meeting its funding requirements for normal capital expenditures, new acquisitions, repayment of high. To achieve long term plans of the Company and to meet the funding requirements of normal capital expenditure, new acquisitions, to improve manufacturing facilities, repayment of high cost loans, diversification, working capital requirement and other general corporate purposes, the Company issued during the year, 16,33,344 Equity shares of Euro 0.15 each at a price of Euro 2.81 per share (including a premium of Euro 2.66 per share) and 5,10,000 Warrants convertible into equity shares of the Company of Euro 0.15, each Warrant entitling the holder of the warrants to apply for and be allotted one equity share of Euro 0.15 each fully paid-up, at a price of Euro 2.81 per share (including a premium of Euro 2.66) or at such other higher prices, conversion of which should be made as stipulated from the date of allotment of the Warrants, in one or more tranches, to the Strategic Investors and the Promoters.

Humboldt Wedag Mineral India Private Limited.

Consequent to the takeover from CMT Division of KHD Humboldt Wedag GmbH, the turnover of the India entity for the period ended March 2010 was Euro 11318181 and PBT was Euro 530303.

Some of the major orders received during this period include

· 660 TPH Coal washery for Bhushan Steel valued at Euro 6666666.

· Chrome ore beneficiation plant for Orissa Mining Corporation valued at Euro 5303030.

· Disc Filter and Diaster filter from Anrak Aluminium valued at Euro 1666666.

During the year, several Coal washery projects were completed including 600 TPH plant for Bhushan Power and Steel, Gujarat NRE Coke Limited Bahchau plant, 300 TPH Belpahar plant of Global Coal, 2.5 mtpa non coking coal washery for SV Power at Korba, Ultratech Awarpur plant. The 50TPH Ferro Manganese and Ferro Silica slag recovery plant of Jindal Steel has been commissioned.

The technical tie-ups with Gaudfrin France and AKW Germany have helped in securing significant orders. The industrial Centrifuge business continues to grow and this trend is expected to continue in the coming years.

MBE Coal and Minerals Technolgy GmbH

The Turnover of the German entity for the period July 2009 to March 2010 was Euro 11 Million.

Many initiatives have been taken to integrate the company into the MBE Group. To announce the acquisition by MBE, MBE-CMT have have done a mailer campaign with all customers with the message "new name, new colour, the essential endure" and also advertised in several mining journals.

MBE Minerals SA Pty Limited South Africa

The turnover of the South African entity for the period ended March 2010 was ZAR 95.8 Million.

Cologne Engg GmbH, Cologne

The turn over of the manufacturing unit for the period ended March 2010 was Euro 4.5 Million.

EWB Kornyezetvedelmi Kft

EWB Kornyezetvedelmi showed significant growth in Billing and over 99% was from export markets since the demand from power plants in Hungary was low during the year. EWB has been consistently promoting existing partner relationships and expect substantial business this year also through these partnerships.

The Consolidated Financial Statements of the Company and its subsidiaries, prepared in accordance with Accounting Standard AS 21 form part of the Annual Report.

In terms of the approval granted by the Central Government under Section 212(8) of the Companies Act, 1956, copy of the Balance Sheet, Profit and Loss Account, Reports of the Board of Directors and Auditors of the Subsidiaries have not been attached to the Balance Sheet of the Company. These documents would be made available upon receipt from any member of the Company interested in obtaining the same. However as directed by the Central Government, the financial data of the subsidiaries have been separately furnished forming part of the Annual Report.

The accounts of the individual subsidiary companies shall be uploaded on the Website of the Company. These documents would also be available for inspection at the Registered Office of the Company and at the office of the respective subsidiary companies, during working hours upto the date of the Annual General Meeting.

MANAGEMENT DISCUSSION AND ANALYSIS

Segmentwise or Productwise Performance

The company is engaged in turnkey projects in infrastructure and related manufacturing activities and therefore the question of segment-wise performance does not arise.

Outlook

The Company has an order backlog of Euro 468181818 as on March 2010 and they hope to achieve a topline of around Euro 409090909 this year. Morever, with a healthy GDP growth forecast of 8.5 to 9% in the coming 2 years, they expect the new order booking to be comfortable and as per Planned targets.

Financial Performance

During the year, the Company recorded commendable growth in its performance both in terms of sales and profitability. While the total income of the Company has grown from Euro 147424242 to Euro 225303030, the Profit Before Tax gone up from Euro 7727272 to Euro 8030303 and earning per share has gone up from Euro 0.16 per share to Euro 0.16 per share. Based on the business scenario within the country and Company’s expanded capability, the Company has set a higher benchmark of performance for the year to come. The Board expects this growth trend, both in terms of profitability and sales, to be maintained in the coming years.

FIXED ASSETS:

· Land (Freehold And Leasehold)

· Buildings

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Refrigerators and Air Conditioners

· Office Equipment

· Telephone Plant

WEBSITE DETAILS:

About Company

Subject (MBE) is one of the leading Engineering Companies in India engaged in providing turnkey solutions in the areas of Power, Steel, Aluminium, Material Handling, Mineral Beneficiation, Pyroprocessing, Pneumatic Handling of powdered materials including fly ash handling and high concentrate disposal, coal washing, port cranes, civic and industrial water supply etc. Over 300 plants have been constructed on turnkey basis by MBE till March 2009.

The Company, headquartered at Kolkata, is a part of the Williamson Magor Group.

The turnkey construction activity of the company is managed through separate Projects Business Groups that assume responsibility for each activity from concept to commissioning. MBE has been awarded ISO 9001:2000 certification.

MBE manufactures a wide range of products required for its various projects through its subsidiary company McNally Sayaji Engineering Limited. (MSE), to whom it provides the requisite technology and design to manufacture the products. MSE product range includes crushing, screening and milling equipment, pressure vessels, material handling equipment, steel plant equipment, process equipment like flotation cell, thickeners, slurry pumps etc.

MBE has technical collaborations with some of the world’s leading firms for each of their activities. Some of our associates include SOLIOS - France, Poltegor- Poland, TPE - Russia, DMT - Germany, Siemens Vai - France, KCI Cranes - Finland, CODCO - China, GRD Minproc - Australia, Gea Messo - Swiss, MCC (China) Uralmash Engg. - Russia, Mekhanobr Chormet (Ukraine) etc.

MBE also has a second subsidiary, EWB Kornyezetvedelmi Kft., Hungary, a fully owned company of MBE, who are world leaders in Ash Handling Systems.

Vision:

MBE will emerge as one of the “best-in-class” organizations in the area of infrastructure development, continuing to consolidate the ongoing process of expansion and venturing into new areas of business maintaining all the way, a high standard of corporate governance. It will rapidly enhance its growth in turnover and net worth, sharing benefits among all its stake holders and assuring customers of quality in all its products and services.

Mission:

Their Mission will be to achieve:

1. Enhanced effectiveness of our people in all functional areas.

2. Long term co-operation and partnership with vendors and associates to expand the base for production of goods and services.

3. Adequate R and D facilities to provide innovative designs and methods of production.

4. Excellence in all our business operations through an all-pervasive Total Quality Management Programme.

5. Improved communication internally as well as with customers and other stakeholders, through appropriate use of information technology and an effective information security management system.

Historical Background

Subject commenced business as McNally Bird Engg. Company. Limited. in a serene township at Kumardhubi (near Dhanbad) as the Indian arm of McNally Pittsburg, USA one of the then leading companies in the world engaged in the construction of coal washeries and Mineral Beneficiation plants with the erstwhile Bird and

Company, a British Managing Agency acting as secretary and managers. The company started with expatriate Americans taking care of major Engineering, Design and Manufacturing functions.

Subject was a pioneer in the country in its initial areas of business, viz Coal preparation, Mineral Benficiation and Bulk Material Handling and there are several firsts attributed to company. Some of the major milestones in the history of MBE are given below:

Directors:

Mr. Deepak Khaitan

Chairman, McNally Bharat Engineering Company Limited

Mr. Deepak Khaitan is the eldest son of Mr. B.M. Khaitan and a renowned industrialist. Mr. Khaitan’s company Eveready Industries India Limited is one of the most renowned and enduring FMCG companies with the operations entrenched in the country for over 100 years.  He has in-depth exposure to and over 30 years of experience in steering diverse business enterprises in India and has gained considerable experience and expertise in management of Tea, Batteries and Engineering Industries.

Mr. Khaitan is the Vice Chairman and Managing Director of Eveready Industries India Limited, Chairman of McNally Sayaji Engineering Limited and a Director of the Williamson Magor Group of Companies along with Directorship in many other companies. Mr. Deepak Khaitan secured First class in B.Com (Hons.) from St. Xaviers College and thereafter moved to Geneva to complete his MBA.

Mr. Shambhu Prasad

MD, McNally Sayaji Engineering Limited

Mr Shambhu Prasad is presently the Managing Director of McNally Sayaji Engineering Limited. He is a Mechanical Engineer from BIT, Sindri. He has over 39 years rich experience in the Engineering Industry. Prior to joining MBE, he worked in various capacities in Durgapur Steel Plant, Tata Robins Fraser and TEGA . He has been with MBE since 1984, initially in Projects and Contracts Division and then moving over to the Manufacturing Units, where he was the Senior Vice President of the Product Division.

Mr. P. K. Chandra

President, Projects Division, McNally Bharat Engineering Company Limited

Mr. Chandra is a Mechanical Engineer, a Cost Accountant and has done his Post-graduation in Marketing Management. He has a brilliant academic record to his credit. He was 1977 batch all-branch topper in engineering from Bengal Engineering College, Shibpore. Later he secured All India First Rank in ICWA final examination in 1984.

He has approximately 30 years of experience in various Multi-National and professionally managed Companies located at Kolkata, Mumbai and Jakarta (Indonesia) in the field of Design and Engineering, Manufacturing, Project Management, Operations Management and Corporate Planning.

He has been associated with various Institutes like the Institute of Cost and Works Accountants - India and the Mumbai University Master of Management Science Programme as a part-time Faculty Member on Finance Management, Management Accounting, Operations Management, Project Management etc.   He has also acted as a UNDP Consultant at Dhaka for conducting a training programme at Institute of Cost and Management Accountants Bangladesh for management subjects, including Project Cost Control.

Mr. P. K. Ghosh

President (Corporate Finance) and CFO, McNally Bharat Engineering Company Limited

Prabir  Ghosh, 49 years, is a qualified Chartered Accountant (trained in Price Waterhouse) with over 25 years of experience in the areas of Financial Policies and Systems, Corporate Finance, Treasury Management, Manufacturing Accounting, International Finance including GDR, ECB and Suppliers credit, Taxation, Commercial Function including export, import, purchase, exim matters, handling  and leading techno-commercial team for large projects, information system development, General Management, Industrial relations and Corporate Strategy. Till 1998 he was Sr Vice-President (Treasury), heading financial  and commercial functions of India Foils Limited.  Between 1999-2001 he served as President in IFB Agro Industries Limited, having businesses in distillery, Liquor, marine processing and export. Since November 2001 he is working as Chief Financial Officer in MBE. He has played a crucial role in re-engineering process and repositioning of the Company to its current form.

He is serving as an active member in different committees and sub-committees (both in Eastern India and at national level) of CII, Bengal Chamber, and Indian Chamber. Mr. Ghosh also is a visiting guest faculty of Globsyn Business School.

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.45.61
UK Pound	1	Rs.75.32
Euro	1	Rs.66.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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		58

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.