MIRA INFORM REPORT

Report Date :

20.09.2011

IDENTIFICATION DETAILS

Name :	METSO MINERALS (INDIA) PRIVATE LIMITED
Formerly Known As :	SVEDALA INDUSTRI INDIA PRIVATE LIMITED
Registered Office :	C-227, Ground Floor, Westend Marg, Near Garden of Five Senses, Paryavaran Complex, New Delhi – 110030, Delhi
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	02.11.1992
Com. Reg. No.:	55-050834
Capital Investment / Paid-up Capital :	Rs.530.000 Millions
CIN No.: [Company Identification No.]	U74899DL1992FTC050834
TAN No.: [Tax Deduction & Collection Account No.]	DELS08161G
PAN No.: [Permanent Account No.]	AAACS3407L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of Crushing and Screening Equipments, Road Construction Equipments and Minerals Processing Equipments.
No. of Employees :	900 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 6000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The company can be considered normal for business dealing 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.

INFORMATION PARTED BY

Name :	Mr. Nishant Srivastava
Designation :	Company Secretary
Contact No.:	91-9810510711
Date :	19.09.2011

LOCATIONS

Registered Office :	C-227, Ground Floor, Westend Marg, Near Garden of Five Senses, Paryavaran Complex, New Delhi – 110030, Delhi
Tel. No.:	91-11-29536312
Mobile No.:	91-9810510711 (Mr. Nishant)
Fax No.:	91-11-29536642
E-Mail :	nishant.srivastava@metso.com nishant.srivastava@metso.in
Website :	http://www.metso.com
Location :	Rented
Headquarters :	1^st Floor, DLF Building No/10, Tower A, DLF Cybercity, DLF Phase II, Gurgaon – 122002, India
Tel. No.:	91-124-2351541
Fax No.:	91-124-2351601
Factory 1:	Plot No. 177 and 178, Investate HSIDC Growth Centre, Bowal District, Reqari – 123501, Haryana, India
Tel. No. :	91-1284-308600 / 308666
Fax No.:	91-1284-308686
Factory 2:	Plot No. SP 1 to 13, South East Zone, Matshya Industrial Area, Alwar – 301030, Rajasthan, India
Foundry :	Opposite Vallabh Nagar, Odhav Road, Odhav, Ahmedabad – 382415, Gujarat, India
Tel. No.:	91-79-30260400
Fax No.:	91-79-22976621
Warehouse :	Located At : Bangalore Barbil Faridabad Hyderabad
Regional Offices :	Plot # A464, Sector Floor, TTC Industrial Area, MIDC, Mahape, Navi Mumbai – 400701, Maharashtra, India Tel No.: 91-22-25452755/ 39130000 Fax No.: 91-22-39130001 Located At : Bangalore Kolkata Hyderabad Chennai

DIRECTORS

(AS ON 30.06.2011)

Name :

Mr. Siddhant Jain

Designation :

Managing Director

Address :

Flat No.59, HOPE Appartm ent, Sector 15, Part II, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

06.11.1967

Date of Appointment :

31.05.2007

DIN No.:

01520250

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	U74899DL1989PTC107161	METSO MINERALS ( MUMBAI) PRIVATE LIMITED	Director	31-05-07	31-05-07	Active	NO
2	U74899DL1992FTC050834	METSO MINERALS (INDIA) PRIVATE LIMITED	Managing director	31-05-07	31-05-07	Active	NO

Name :

Mr. Muggeri Narayan Shetty

Designation :

Director

Address :

C-8, Brahma Co-Opeartive Group, Housing Society Limited, Sector – 7, Plot No. – 7, Dwarka, New Delhi – 100075, Delhi, India

Date of Birth/Age :

02.04.1947

Date of Appointment :

31.05.2007

DIN No.:

01520352

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	U74899DL1992FTC050834	METSO MINERALS (INDIA) PRIVATE LIMITED	Director	31-05-07	31-05-07	Active	NO

Name :

Mr. Neil Graeme Hughes

Designation :

Director

Address :

11, Tully Road East Perth, WA 6004, Australia

Date of Birth/Age :

07.05.1953

Date of Appointment :

14.07.2004

DIN No.:

00194925

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	U74899DL1992FTC050834	METSO MINERALS (INDIA) PRIVATE LIMITED	Director	14-07-04	14-07-04	Active	NO
2	U74899DL1989PTC107161	METSO MINERALS (MUMBAI) PRIVATE LIMITED	Director	14-07-04	14-07-04	Active	NO

Name :

Mr. Eeva Liisa Virkkunen

Designation :

Director

Address :

Musekatu 7 B 19, Helsinki, Finland – 00100

Date of Birth/Age :

20.11.1957

Date of Appointment :

30.06.2008

DIN No.:

02231272

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	U74210MH1999PTC122061	METSO AUTOMATION INDIA PRIVATE LIMITED	Director	11-04-05	11-04-05	08-10-09	Active	NO
2	U74899DL1992FTC050834	METSO MINERALS (INDIA) PRIVATE LIMITED	Director	30-06-08	30-06-08	-	Active	NO

KEY EXECUTIVES

(AS ON 30.06.2011)

Name :	Mr. Nishant Srivastava
Designation :	Company Secretary
Address :	U-62/8, DLF Phase III, Gurgaon – 122002, India
Date of Birth/Age :	17.03.1976
Date of Appointment :	02.04.2009
Pan No.:	AXFPS4444J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2010)

Names of Shareholders	No. of Shares
Metso Minerals Inc, Finland	52600000
Metso Minerals Sweden AB, Sweden	400000
Total	53000000

(AS ON 30.06.2011)

Category	Percentage
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 :

Manufacturing and Trading of Crushing and Screening Equipments, Road Construction Equipments and Minerals Processing Equipments.

Products :

Products Description	Item Code No.
Manufacturing and Trading of Crushing and Screening Equipments, Road Construction Equipments and Minerals Processing Equipments.	351

Exports :

Products :

Mining Projects

Countries :

Across World

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.12.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Machines	Tonnes	Not Applicable	*4500	1604**
Castings	Tonnes	Not Applicable	*7200	5993**

NOTE:

* As certified by the management and relied upon by the auditors being a technical matter.

** Installed capacity for machines is in tonnes, whereas production and stock figures of machines are in numbers as recorded by the Company in its books and records. For castings all the figures are in tonnes.

GENERAL INFORMATION

Customers :

· Jindal

· Vedanta

· Bhushan Steels

Suppliers :

· A.B.B.

No. of Employees :

900 (Approximately)

Bankers :

Standard Chartered Bank, New Delhi, India

Facilities :

Unsecured Loans	31.12.2010	31.12.2009
	(Rs. In Millions)
Long Term Loan
From Banks *#	520.000	520.000
Interest Accrued and Due	4.449	3.347
From Others, (External Commercial Borrowing from Parent Company) #	298.800	--
Interests Accrued and due	0.064	--
Short Term Loan
From Banks *	1122.890	528.000
Interest Accrues and Due	4.044	1.097
From Others (Group Companies)	325.046	307.707
Interest Accrued and Due	2.077	2.101
Deferred Sales Tax Liability ***	70.707	87.123
Total	2348.077	1449.375

NOTE:

* Guaranteed by Metso Corporation, Finland, the Ultimate Parent Company.

# Repayable Within a Year Rs.390.000 millions (Previous Year Rs. Nil)

*** Repayable within a year Rs.34.431 millions (Previous year Rs.16.414 millions)

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountant
Address :	DLF Building No.8, 7^th and 8^th Floor, Tower B, DLF Cyber City, Gurgaon – 122002, Haryana, India
Holding Company :	· Metso Minerals Inc, Finland (English Translation of Metso Minerals Oy)
Ultimate Holding Company :	· Metso Corporation, Finland
Associates/Subsidiaries :	· Metso Minerals (Mumbai) Private Limited, CIN No.: U74899DL1989PTC107161 · Metso Minerals Canada Inc · Metso Minerals (France) SA. · Metso Minerals (Australia) Limited · Metso Minerals (Tianjin) Int'l Trade · Metso Minerals (Sweden) AB. · Metso Minerals Ind. Inc. · Metso Mexico, S.A. de C.V. · Metso Minerals (Hong Kong) Limited · Metso Minerals (Wear Protection) AB* · Metso Minerals (Sala) AB* · [merged with Metso Minerals (Sweden) AB w.e.f. October 1, 2010) · Metso Minerals (Singapore) Pte. Limited · Metso Minerals (Matamata) Limited · Metso Minerals (Deutschland) GMBH. · Metso Brasil Industria e Comercio Ltda · Metso Minerals (South Africa) Pty Limited · Metso Paper (India) Private Limited · Metso Automation (India) Private Limited · Metso Power (India) Private Limited · Metso Minerals (Cappagh) Limited · Metso Minerals (Moers) Gmbh · Metso Minerals (UK) Limited · Metso Automation Pte. Limited · Metso Share Services Oy

CAPITAL STRUCTURE

(AS ON 31.12.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
53000000	Equity Shares	Rs.10/- each	Rs.530.000 Millions

NOTE:

* Of the above 52,600,000 (previous year 52,600,000) Equity Shares are held by Metso Minerals Inc., the Holding Company and 400,000 (Previous Year 400,000) Equity Shares are held by Metso Minerals (Sweden) AB*, Subsidiary of Metso Minerals Inc.

* Mesto Minerals (Wear Protection) AB has been merged with mesto Minerals (Sweden) AB. W.e.f. October 1, 2010.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		530.000	530.000	530.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		921.334	786.983	739.902
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1451.334	1316.983	1269.902
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		2348.077	1449.375	1306.643
TOTAL BORROWING		2348.077	1449.375	1306.643
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3799.411	2766.358	2576.545
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1592.301	913.296	954.825
Capital work-in-progress		265.519	646.986	191.357
INVESTMENT		0.018	0.018	0.019
DEFERREX TAX ASSETS		25.414	42.338	19.408
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1387.616	985.382	1210.583
	Sundry Debtors	1713.987	1154.643	850.447
	Cash & Bank Balances	354.901	103.860	90.272
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	322.076	272.591	237.500
Total Current Assets		3778.580	2516.476	2388.802
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1177.135	909.801	687.344
	Other Current Liabilities	546.467	348.419	162.656
	Provisions	138.819	94.536	127.699
Total Current Liabilities		1862.421	1352.756	977.866
Net Current Assets		1916.159	1163.720	1410.936
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3799.411	2766.358	2576.545

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Net Sales	4783.150	2965.231	3292.565
		Income from Services Rendered	528.118	422.305	496.601
		Other Income	34.238	22.960	17.089
		TOTAL (A)	5345.506	3410.496	3806.255
Less	EXPENSES
		Manufacturing and other Expenses	4878.763	3131.629	3424.486
		TOTAL (B)	4878.763	3131.629	3424.486
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		466.743	278.867	381.769
Less	FINANCIAL EXPENSES (D)		128.169	107.018	74.378
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		338.574	171.849	307.391
Less/ Add	DEPRECIATION/ AMORTISATION (F)		131.608	94.886	74.370
	PROFIT BEFORE TAX (E-F) (G)		206.966	76.963	233.021
Less	TAX (H)		72.615	29.883	107.532
	PROFIT AFTER TAX (G-H) (I)		134.351	47.080	125.489
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		591.982	544.902	419.413
	BALANCE CARRIED TO THE B/S		726.333	591.982	544.902
	EARNINGS IN FOREIGN CURRENCY
		Service Charges	155.218	86.940	133.384
		Reimbursement of Expenses incurred on behalf of others	40.534	21.703	42.785
	TOTAL EARNINGS		195.752	108.643	176.169
	IMPORTS
		Raw Materials	570.928	119.426	201.514
		Trading Goods	382.976	379.269	520.391
		Capital Goods	5.746	55.546	118.736
	TOTAL IMPORTS		959.650	554.241	840.641
	Earnings Per Share (Rs.)		2.53	0.89	2.91

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	2.51	1.38	3.29
Net Profit Margin (PBT/Sales)	(%)	3.90	2.27	6.14
Return on Total Assets (PBT/Total Assets}	(%)	3.85	2.24	6.96
Return on Investment (ROI) (PBT/Networth)		0.14	0.05	0.18
Debt Equity Ratio (Total Liability/Networth)		2.90	2.12	1.79
Current Ratio (Current Asset/Current Liability)		2.03	1.86	2.44

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Total Outstanding dues of Micro Enterprises and Small Enterprises	0.693	1.842	3.127
Total Outstanding dues of creditors other than Micro Enterprises and Small Enterprises	1176.442	907.959	684.217
Total	1177.135	909.801	687.344

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	No
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	--
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	No
Export/ Imports Details (If applicable)	Yes
Market Information	No
Litigations that the firm/ Promoters Involved in	No
Banking details	Yes
Banking Facility Details	No
Conduct of the Banking Account	No
Buyer visit details	No
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

NOTE:

The Registered office address of the company has been shifted from C-88-89, Paryavaran Complex, New Delhi – 110030, Delhi, India, to present address w.e.f. 01.04.2009

TRADE REFERENCES:

· ABB – Suppliers

· Jindal – Customers

· Vedanta – Customers

· Bhushan Steels – Customers

PERFORMANCE:

As the economy started sharp recovery after the downturn of year 2009, the company also participated in the recovery and improved its sales by more than 50%. During the year, the Company was able to utilize all its production and engineering capabilities at a high level. Further during the year, Metso Park, the high profile manufacturing project of the Company also started commercial production and started adding to the needed capacity. Profit (PBT) for the year jumped from 77.000 Millions in the year 2009 to 207.000 Millions in the year 2010.

FUTURE OUTLOOK:

The company is having a big order backlog to be executed during the year 2011 and beyond. More over the economic activity is expected to accelerate further in the future and hence we are expecting the growth momentum to continue in future as well. Further, as growth in India is expected to continue in future, the Company is considering to start to manufacture several new products in the country.

The company is confident of India growth story and shall continue to invest in manufacturing, supply chain and engineering capabilities in the country so as to be able to improve its market share and profitability.

CONTINGENT LIABILITIES:

The following are the details of contingent liabilities, the outflow of which is uncertain at this stage.

· Pending litigation in respect of Labour cases, wherein amount is not currently ascertainable.

· Litigation in respect of Income Tax for Assessment year 2007-08, pending disposal of appeal by Income Tax Authorities is Rs.6.899 Millions. The authorities have adjusted Rs.3.415 Millions against the refund for the Assessment year 2010-11.

· Sales tax matters pending for disposal by authorities - Rs.8.721 Millions. The Company has deposited Rs.1.317 Millions under protest.

FIXED ASSETS:

· Land – Free Hold

· Land – Leasehold

· Building

· Plant and Machinery

· Computers

· Office Equipments and Furniture and Fixtures

· Vehicles

· Leasehold Improvements

· Patterns

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.47.47
UK Pound	1	Rs.74.96
Euro	1	Rs.65.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.