Report Date :

21.02.2011

IDENTIFICATION DETAILS

Name :	UNITED CONVEYOR CORPORATION (INDIA) PRIVATE LIMITED
Registered Office :	11, Shakespeare Sarani, 5^th and 6^th Floor, Kolkata-700071, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.06.1998
Com. Reg. No.:	21-087373
CIN No.: [Company Identification No.]	U45207WB1998PTC087373
TAN No.: [Tax Deduction & Collection Account No.]	CALU01309A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Ash Handling and Pneumatic Conveying Equipment.

RATING & COMMENTS

Rating :

C (7)

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of United Conveyor Corporation, U.S.A. The company is not faring well in India and has huge accumulated losses. However, its payments are correct and as per commitments. In view of difficult financial status, it would be prudent to deal with the company on safe and secured trade terms and conditions.

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 Office :	11, Shakespeare Sarani, 5^th and 6^th Floor, Kolkata – 700 071, West Bengal
Tel. No.:	91-33-40029999
Fax No.:	91-33-40033045
E-Mail :	ucci@cal2.vsnl.net.in auc@cal.vsnl.net.in
Website :	http://www.uccindia.net
Head Office :	Located at: Kolkata
Factory :	Located at: Uluberia Industrial Growth Centre
Branch Office :	Located at: New Delhi

DIRECTORS

As on 30.09.2010

Name :	Mr. Douglas S. Basler
Designation :	Chairman
Address :	877 E, West Minister Lake Forest, United States of America 060045
Date of Birth/Age :	22.05.1959
Date of Appointment :	03.08.1998
Name :	Mr. Sumantra Sen
Designation :	Director
Address :	107, Meghnad Saha Sarani, Kolkata – 700 029, West Bengal, India
Date of Birth/Age :	17.07.1959
Date of Appointment :	15.09.2008
Name :	Mr. Mark Springer
Designation :	Director
Address :	516, Cole Drive, South Elgin, Illinois-60177, USA
Date of Birth/Age :	17.03.1964
Date of Appointment :	02.06.2009
Name :	Mr. Robert Kenneth Koleno
Designation :	Director
Address :	510, East Burr Oakdrive, Arlington Heights, United States of America 060000
Date of Birth/Age :	30.08.1968
Date of Appointment :	21.04.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Basler N. Donald	1
United Conveyor Corporation, USA	59801203
Total	59801204

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Ash Handling and Pneumatic Conveying Equipment.

GENERAL INFORMATION

Bankers :

State Bank of India, Commercial Branch, N.S. Road, 8, N.S. Road, Kolkata – 700 001, West Bengal, India JP Morgan Chase Bank, N.A., JP Morgan Tower, Off CST Road, Kalina, Santacruz (E), Mumbai-400098, Maharashtra, India The Hong Kong and Shanghai Banking Corporation Limited

Banking Relations :	--
Auditors :
Name :	Suresh Surana and Associates Chartered Accountants
Address :	310 Ahura Centre, 82 Mahakali Caves Road, Andheri East, Mumbai-400093, Maharashtra, India

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59801204	Equity Shares	Rs.10/- each	Rs.598.012 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		598.012	420.857	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(654.942)	(533.393)	(208.272)
NETWORTH		(56.930)	(112.536)	(158.272)
LOAN FUNDS
1] Secured Loans		11.705	39.120	33.828
2] Unsecured Loans		159.825	114.924	304.503
TOTAL BORROWING		171.530	154.044	338.331
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		114.600	41.508	180.059
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		71.733	77.684	77.364
Capital work-in-progress		0.000	0.000	1.788
INVESTMENT		0.010	0.037	0.037
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	74.562	75.360	138.399
	Sundry Debtors	114.546	185.960	253.055
	Cash & Bank Balances	13.040	17.611	7.311
	Other Current Assets	0.151	0.106	0.016
	Loans & Advances	167.714	192.459	19.129
Total Current Assets		370.013	471.496	417.910
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	283.229	477.821	312.238
	Provisions	43.927	36.345	4.802
Total Current Liabilities		327.156	514.166	317.040
Net Current Assets		42.857	(42.670)	100.870
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
OTHERS		0.000	6.457	0.000
TOTAL		114.600	41.508	180.059

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income			647.042
		Other Income			14.904
		TOTAL (A)	437.060	401.900	661.946
Less	EXPENSES
		Cost of material consumed and sold			470.799
		Employees remuneration and benefits	511.170	652.890	67.196
		Manufacturing, administrative, selling and other expenses			266.663
		Increase/ decrease in stocks			24.077
		TOTAL (B)	511.170	652.890	828.735
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(74.110)	(250.990)	(166.789)
Less	FINANCIAL EXPENSES (D)		13.150	24.290	26.965
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(87.260)	(275.280)	(193.754)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.550	7.430	6.917
	PROFIT BEFORE TAX (E-F) (G)		(94.810)	(282.710)	(200.671)
Less	TAX (H)		NA	NA	1.552
	PROFIT AFTER TAX (G-H) (I)		NA	NA	(202.223)
Add	PRIOR PERIOD TAX ADJUSTMENT		NA	NA	(0.862)
	REVERSAL OF DEFERRED TAX ASSETS RECOGNIZED IN EARLIER YEARS		NA	NA	(1.681)
	PRIOR PERIOD ADJUSTMENT		NA	NA	(0.571)
Add / Less	ADJUSTMENT IN ACCORDANCE WITH TRANSITIONAL PROVISION IN ACCORDING STANDARDS 15		NA	NA	0.950
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(3.885)
	BALANCE CARRIED TO THE B/S		NA	NA	(208.272)
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	NA	NA	160.415
		Export of Services	NA	NA	14.826
	TOTAL EARNINGS		NA	NA	175.241
	IMPORTS
		Raw Materials	NA	NA	4.197
		Capital Goods	NA	NA	0.000
	TOTAL IMPORTS		NA	NA	4.197
	Earnings Per Share (Rs.)		NA	NA	(40.95)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	NA	(30.55)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(31.01)
Return on Total Assets (PBT/Total Assets}	(%)	(21.46)	51.48	(40.52)
Return on Investment (ROI) (PBT/Networth)		1.67	2.51	1.27
Debt Equity Ratio (Total Liability/Networth)		(8.76)	5.94	4.14
Current Ratio (Current Asset/Current Liability)		1.13	0.92	1.32

LOCAL AGENCY FURTHER INFORMATION

Note: The registered office of the company has been shifted from 27 B Moulana Abul Kalamazad Sarani, Kolkata-700054, West Bengal, India to the present address w.e.f. 08.03.2007

FINANCIAL RESULTS

The Company recorded an Income of Rs. 437.060 million (including finished / semi finished goods) compared to the income of Rs. 401.900 million during the previous year thereby registering a increase of 8.75%. The company registered an operating loss of Rs. 94.810 million during the year compared to an operating loss of Rs.282.710 million during the previous year. After providing Rs. 13.150 million for interest Rs. 7.550 million for depreciation, the revenue account show a loss of Rs. 115.520 million during the year compared to Rs. 314.440 million losses during the previous year. The increase of loss is mainly for cost overrun for long time period for execution of projects, adverse exchange variance, the significant increase in steel prices, increase of fixed expenses in respect of high remuneration to employees to match with the current market trend and high cost of borrowings for project finance. In this state of condition, the parent company confirms that they will continue to provide full financial support during the next financial period. However, considering the unabsorbed business loss the Directors do not recommend any dividend for the year.

OPERATIONAL REVIEW

The Company turnover during the financial year comprised mainly of execution of Indian as well as Export jobs. The activity in respect of supply of spares for Indian jobs has also increase substantially. Although the Company could not achieve success in executing projects involving construction work, the Company booked three MRS Contracts and two Supply Contracts during the period. The Company has also successfully completed one Export Contract on time during the period, The Management has experienced that you are more efficient in handling Export Contracts wherein only design and supply are involved and better consequently margin is achieved. Therefore the Company is now focusing more on Export Contracts and also few Domestic Contracts which involves lesser or no construction work.

The Management of the Company has formed a Team called IPAT meaning “India Process Alignment Team” which consists of members from various departments of our Parent Company who are focusing mainly on process Alignment between our Parent Company and their Company.

The Management has decided to strengthen the process flow within the Company which will ultimately help us to monitor execution of Project Steps at each level thereby achieving the Company’s goals and objectives.

The industry is very competitive for newly entrant and the market is extremely price sensitive. The company has increased the scale of operation with full new set up of office facilities for handling additional projects. The company is maintaining the quality for the accredited ISO 9001-2000 for Design, project Management and Manufacture of Pneumatic and Hydraulic Conveying Systems for Ash and Other Abrasive Materials, Cement and Mill Reject.

During the year the turnover of the company has not improved compared to the previous period and it couldn’t achieve positive operating margin. Despite of their best effort significant increase in input cost of material prices and fixed expenses, cost overrun of projects for prolong time of execution the company was unable to generate sufficient operating profit to cover fixed expenses, interest depredation and it ended the year with negative net profit. The management of the company planned to close twelve projects and already seven projects have been closed after the period. The company has decided to take projects which are less risky and having good margin. The company is expecting a turnaround of this present situation and it is expected that after the period the company will earn to a margin to cover the fixed cost

MANUFACTURING FACILITIES

During the year, the Company’s manufacturing facilities at the Industrial Growth Center at Uluberia, operated successfully. The products manufactured at the Company’s manufacturing facilities were dispatched to various Indian projects and export projects to the entire satisfaction of the customer. The Company has made considerable Endeavour to achieve and further improve upon the product quality during the course of the year .The Management of the Company has decided to make huge investments for factory to make it viable for Global competitive market and increase productivity.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90245024
Corporate identity number of the company	U45207WB1998PTC087373
Name of the company	UNITED CONVEYOR CORPORATION (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	27 B Moulana Abul Kalamazad Sarani, Kolkata-700054, West Bengal, India
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Commercial Branch, N.S. Road, 8, N.S. Road, Kolkata-700001, West Bengal, India
Email	sbi.04215@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit for Creation of further Charge for Term Loan/Overall Limit where the Initial Charge is created by way of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	10.11.2006
Amount secured by the charge	Rs.175.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest, commission, discount, costs and charges as may be current from time to time for the credit facility according to Banking norms and RBI Guidelines. Terms of Repayment On Demand. Margin As may be stipulated by the Bank for the respective assets from time to time. Extent and Operation of the charge First Charge on the whole of the mortgaged properties.
Short particulars of the property charged	Mouza Chandipur, J. L. No.9, P.S. Uluberia, District-Howrah containing an area of more or less 6.3027 acres of land comprising Plot No.56, under Deed No.8034 for the year of 2005.
Particulars of the present modification	By this modification, the Overall Limit is enhanced by Rs.45.000 Millions from Rs.130.000 Millions to Rs.175.000 Millions (Particulars of Immovable Properties and all other terms and conditions continue to remain as before in full force and effect.

FIXED ASSETS:

• Leasehold Land
• Leasehold Improvement
• Buildings
• Plant and Machinery
• Office Equipments
• Computer and Software
• Furniture and Fixtures
• Vehicles

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.18
UK Pound	1	Rs.73.04
Euro	1	Rs.61.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	-
OPERATING SCALE	1~10	-
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	-
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	-
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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	NO
--OTHER MERIT FACTORS	YES/NO	NO
TOTAL		7

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.