MIRA INFORM REPORT

Report Date :

14.12.2011

IDENTIFICATION DETAILS

Name :	BESCO LIMITED (w.e.f. 15.06.1993)
Formerly Known As :	THE HUKUMCHAND ELECTRIC STEEL COMPANY LIMITED
Registered Office :	7B and C, Poonam, 5/2, Russel Street, Kolkata – 700 071, West Bengal
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	23.12.1928
Com. Reg. No.:	21-006190
Capital Investment / Paid-up Capital :	Rs.43.594 millions
CIN No.: [Company Identification No.]	L27109WB1928PLC006190
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Railroad Product and Track System, Railway Coil Springs, Draft Gears, Brake Blocks and Metal Rubber Bonded Components.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1005000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	--
Comments :	Subject is an established company having moderate track. The management has not filed the financials of the company with the government departments after the year 2009. However, trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some caution.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Parashar
Designation :	Executive Assistant
Contact No.:	91-9051300054
Date :	12.12.2011

LOCATIONS

Registered Office :	7B and C, Poonam, 5/2, Russel Street, Kolkata – 700 071, West Bengal, India
Tel. No.:	91-33-22273964/ 22266784/ 22276784
Mobile No.:	91-9830008886 (Mr. Shashwat – Director) 91-9051300054 (Mr. Parashar - Executive Assistant)
Fax No.:	91-33-22261406/ 22263964
E-Mail :	besco@vsnl.com besco_brp@rediffmail.com corporate@bescoltd.com
Website :	www.bescoltd.com
Factory :	Baruipur, 24 Parganas (S), Kolkata – 700 144, West Bengal, India
Tel. No.:	91-33-24338251
Fax No.:	91-33-24335680/ 24330512
Mailing Address :	8, Anil Maitra Road, Kolkata – 700 019, West Bengal, India
Tel. No.:	91-33-24400228/ 6365/ 7644/ 7067
Fax No.:	91-33-24404011/ 24603974
E-Mail :	besco@vsnl.com

DIRECTORS

As on 30.06.2010

Name :

Mr. A.K. Tantia

Designation :

Director

Name :

Mr. Siddharth Tantia

Designation :

Director

Name :

Mr. Shashwat Tantia

Designation :

Director

Name :

Mr. Om Prakash Tantia

Designation :

Director

Date of Appointment :

19.06.1967

DIN No.:

00031211

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L27109WB1928PLC006190	Besco Limited	Managing director	19-06-67	19-06-67	Active	NO
2	U67120WB1981PTC033760	Sellwin Investments Private Limited	Director	28-04-06	28-04-06	Active	NO
3	U74140WB1966PTC026861	Bascon (Consultants) Private Limited	Director	28-04-06	28-04-06	Active	NO
4	U65921WB2008PTC123398	Om Besco Group Holdings Private Limited	Director	03-03-08	03-03-08	Active	NO
5	U45400WB2008PTC123428	Om Besco Infrastructure Private Limited	Director	03-03-08	03-03-08	Active	NO
6	U29253WB2008PTC123604	Om Besco Rail Products Private Limited	Director	05-03-08	05-03-08	Active	NO

Name :

Madhusudan Tantia

Designation :

Director

Date of Appointment :

01.09.1991

DIN No.:

000321226

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L27109WB1928PLC006190	Besco Limited	Director	01-09-91	01-09-91	Active	NO
2	U74140WB2004PTC098425	Besco Engineering and Services Private Limited	Director	27-04-04	27-04-04	Active	NO
3	U74140WB1966PTC026861	Bascon (Consultants) Private Limited	Director	28-04-06	28-04-06	Active	NO
4	U67120WB1981PTC033760	Sellwin Investments Private Limited	Director	28-04-06	28-04-06	Active	NO
5	U65921WB2008PTC123398	Om Besco Group Holdings Private Limited	Director	03-03-08	03-03-08	Active	NO
6	U45400WB2008PTC123428	Om Besco Infrastructure Private Limited	Director	03-03-08	03-03-08	Active	NO
7	U29253WB2008PTC123604	Om Besco Rail Products Private Limited	Director	05-03-08	05-03-08	Active	NO
8	U35203DL2004PTC127510	Greysham International Super Friction Private Limited	Director	30-09-09	08-12-08	Active	NO

Name :

Viji Aravamudhan Iyengar

Designation :

Director

Date of Appointment :

29.03.1993

DIN No.:

00064970

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L27109WB1928PLC006190	Besco Limited	Director	29-03-93	29-03-93	-	Active	NO
2	U85195WB1990SGC049515	Gluconate Health Limited	Director	27-03-01	27-03-01	19-07-07	Active	NO
3	U02001WB1996PLC135656	Maple Orgtech (India) Limited	Additional director	18-07-08	10-10-01	-	Active	NO
4	U85195WB1961SGC025168	Electro Medical and Allied Industries Limited	Director	29-05-02	29-05-02	15-03-10	Active	NO
5	U25199WB1976PLC030532	Tega Industries Limited	Director	06-06-02	06-06-02	-	Active	NO
6	L51909WB1947PLC014515	Jardine Henderson Limited	Director	25-07-02	25-07-02	-	Active	NO
7	L51109WB1938PLC009490	Albert David Limited	Director	31-10-02	31-10-02	-	Active	NO
8	L65993WB1992PLC056788	Marudhar Food and Credit Limited	Director	29-05-05	29-05-05	-	Active	NO
9	U74899DL1988PLC035848	Mm Aqua Technologies Limited	Director	28-04-06	28-04-06	-	Not Available for eFiling	NO
10	U00899HR1988PLC035848	MM Aqua Technologies Limited	Director	28-06-06	28-06-06	-	Active	NO
11	L67190WB1983PLC035658	VCK Capital Market Services Limited	Director	17-09-08	31-07-08	-	Active	NO
12	U93000MH2011PTC218782	Jugaad Ventures Private Limited	Director	17-06-11	17-06-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Parashar
Designation :	Executive Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

MAJOR SHAREHOLDERS – NOT AVAILABLE

As on 30.06.2010

Equity Share Breakup	Percentage of Holding
Category
Public financial companies	8.54
Nationalised or other banks	0.06
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.41
Bodies corporate	48.80
Directors or relatives of directors	37.80
Other top fifty shareholders	1.56
Others	2.83
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Railroad Product and Track System, Railway Coil Springs, Draft Gears, Brake Blocks and Metal Rubber Bonded Components.
Products :	v Railroad Products v Track System
Exports :
Products :	Rail Road Product
Countries :	v Brazil v Malaysia
Terms :
Purchasing :	Depends

GENERAL INFORMATION

Customers :

End Users

v Indian Railways

No. of Employees :

300 (Approximately)

Bankers :

v State Bank of India, Kolkata, West Bengal, India

v Allahabad Bank, Kolkata, West Bengal, India

Facilities :

Secured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
Working Capital Loan from Banks	94.596	49.697
Total	94.596	49.697

Security:

Working Capital loan from Banks (under consortium) is secured/ to be secured by hypothecation of stock-in-trade including raw materials, finished goods, work-in-progress, consumable stores, book debts, foreign contract, letter of credit and second charge as mortgage by way of deposit of title deeds of specified Land of the Company, Shed and Building at Faridabad and Plant and Machinery of the Company as collateral security.

Banking Relations :	--
Auditors :
Name :	R.N. Das and Associates Chartered Accountants
Address :	23/B, Allenby Road, Kolkata – 700 020, West Bengal, India
Tel. No.:	91-33-24768439/ 24768440
Income-tax PAN of auditor or auditor's firm :	ADRPD2424K
Associates/Subsidiaries :	VRC Continental Ghaziabad, Uttar Pradesh, India

CAPITAL STRUCTURE

As on 30.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4360000	Equity Shares	Rs.10/- each	Rs.43.600 millions

As on 31.03.2009

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.43.594 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		43.594	43.594	43.594
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		207.762	165.897	158.979
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		251.356	209.491	202.573
LOAN FUNDS
1] Secured Loans		94.596	49.697	42.239
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		94.596	49.697	42.239
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		345.952	259.188	244.812
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		179.208	115.302	115.278
Capital work-in-progress		1.256	29.600	0.682
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	180.299	31.038	45.969
	Sundry Debtors	120.089	67.374	70.769
	Cash & Bank Balances	9.933	5.879	7.421
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.249	37.516	23.833
Total Current Assets		332.570	141.807	147.992
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	207.276	68.717	61.267
	Other Current Liabilities	2.020	0.621	0.300
	Provisions	0.459	0.856	0.246
Total Current Liabilities		209.755	70.194	61.813
Net Current Assets		122.815	71.613	86.179
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Foundry Division		42.673	42.673	42.673
TOTAL		345.952	259.188	244.812

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	1248.344	410.898	304.891
		Other Income	2.478	0.956	1.579
		TOTAL (A)	1250.822	411.854	306.470
Less	EXPENSES
		Manufacturing and Other Expenses	1275.568	398.629	288.830
		Increase/ Decrease in Stocks	(109.196)	(16.466)	0.000
		TOTAL (B)	1166.372	382.163	288.830
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		84.450	29.691	17.640
Less	INTEREST (D)		4.731	4.315	5.532
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		79.719	25.376	12.108
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.754	10.453	9.454
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		65.965	14.923	2.654
Less	TAX (H)		24.100	8.005	3.299
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		41.865	6.918	(0.645)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.273	(0.645)	--
	BALANCE CARRIED TO THE B/S		48.138	6.273	(0.645)

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	900.000	900.000

Expected Sales (2011-2012): Rs.900.000 millions

The above information has been parted by Mr. Parashar (Executive Assistant).

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	3.35	1.68	(0.21)
Net Profit Margin (PBT/Sales)	(%)	5.28	3.63	0.01
Return on Total Assets (PBT/Total Assets}	(%)	12.89	5.80	1.01
Return on Investment (ROI) (PBT/Networth)		0.26	0.07	0.01
Debt Equity Ratio (Total Liability/Networth)		1.21	0.57	0.51
Current Ratio (Current Asset/Current Liability)		1.59	2.02	2.39

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v AC and Water Supply

v Vehicles

v Railway Siding

v Furniture and Fixtures

v Plant and Machinery (R and D)

v Building (R and D)

TRADE REFERENCES:

v Indian Railways

WEBSITE DETAILS:

HISTORY:

1930 - The company was incorporated in 1930. The company is headed by Shri. B L Tantia and Shri. O P Tantia. The company is engaged in the manufacture of Steel castings, Steel ingots/Billets and Alloy Steel.

2000 - Subject with Amalgamation of VRC Continental Private Limited

PROFILE:

Subject, with its headquarters in Calcutta, is one of India's manufacturers of railroad infrastructure. Founded in 1929, it has successfully served the needs of the Indian Railways and those of other railroad systems globally for more than 75 years. Currently, the Company has manufacturing facilities in Eastern and Northern India; namely in Calcutta, West Bengal and Faridabad, Haryana. The foundry in Calcutta has the capacity to produce in excess of 25000 MT of steel castings annually and has been certified by Lloyd's Register Quality Assurance Limited as being compliant with ISO-9001:2000 quality management standards.

products

Subject's product base is composed of engineering products of a high safety nature. These products find application on locomotives / wagons / coaches and rail tracks. They have been produced in technical know-how collaborations with reputed American railway builders such as Amsted and Cardwell Westinghouse to meet AAR standards. Subject has exported substantial volumes of its products to the railway systems in Brazil, Austria, Japan, Czech Republic, Australia, Vietnam, Egypt, Bangladesh, China, Uganda, Indonesia, Thailand, Sudan, Mali and Malaysia etc.

v Freight cars

v Freight car rehabilitation

v Freight car bogies/undercarriage (supplied > 70000 nos.).

v Center Buffer Couplers and draft gears (supplied > 110000 nos.).

v Cast manganese rail tracks/frogs (supplied > 15000 nos.).

v Ancillary components: Yokes, elastomeric pads, steel coil springs and metal-to-rubber bonded components for rolling stock.

v Heavy engineering fabrications

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.53.40
UK Pound	1	Rs.83.32
Euro	1	Rs.70.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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.