MIRA INFORM REPORT

Report Date :

13.01.2012

IDENTIFICATION DETAILS

Name :	INDIAN ORDNANCE FACTORIES
Registered Office :	Ordnance Factory, Ambernath, Maharashtra
Country :	India
Date of Incorporation :	18.03.1802
Capital Investment / Paid-up Capital :	Not Divulged
Legal Form :	Owned by Government of India
Line of Business :	Subject is engaged in Production, Testing, Logistics, Research, Development and Marketing of a comprehensive product range in the area of Land, Sea and Air Systems.
No. of Employees :	Several Thousand

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is owned by government of India. It falls under Ministry of Defence. Lenders and Creditors can feel confident about the government of India’s exposure to the subject. Payments are usually correct and as per commitments. It can be considered good for any normal business dealings.

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

LOCATIONS

Registered Office :	Ordnance Factory, Ambernath, Maharashtra, India
Tel No.:	Not Available
Fax No.:	Not Available
Website :	http://ofbindia.gov.in
Factory:	Ø Field Gun Factory Kanpur (FGK) Address: Kalpi Road, Kanpur-208009, Uttar Pradesh, India Tel No.: 91-512-2295100/103 [4 Lines] Fax No.: 91-512-2219462 Email: fgk.ofb@nic.in Website: http://www.fieldgunindia.gov.in Ø Ammunition Factory Khadki (AFK) Ø Cordite Factory Aruvankadu (CFA) Ø Engine Factory Avadi (EFA) Ø Gun Carriage Factory (GCF) Ø Grey Iron Foundry (GIF) Ø Gun and Shell Factory (GSF) Ø Heavy Alloy Penetrator Project (HAPP) Ø High Explosive Factory (HEF) Ø Heavy Vehicle Factory (HVF) Ø Machine Tool Prototype Factory (MPF) Ø Metal and Steel Factory (MSF) Ø Ordnance Clothing Factory Avadi (OCFAV) Ø Ordnance Cable Factory Chandigarh (OCFC) Ø Ordnance Clothing Factory Shahjahanpur (OCFC) Ø Ordnance Equipment Factory Kanpur (OEFC) Ø Ordnance Equipment Factory Harzatpur (OEFHZ) Ø Ordnance Factory Ambernath (OFA) Ø Ordnance Factory Anbajhari (OFAJ) Ø Ordnance Factory Bhandara (OFBA) Ø Ordnance Factory Bhusawal (OFBH) Ø Ordnance Factory Bolangir (OFBOL) Ø Ordnance Factory Kanpur (OFK) Ø Ordnance Factory Chandrapur (OFCH) Ø Ordnance Factory Dumdum (OFDC) Ø Ordnance Factory Dehu Road (OFDR) Ø Ordnance Factory Dehradun (OFDUN) Ø Ordnance Factory Itarsi (OFI) Ø Ordnance Factory Khamaria (OFK) Ø Ordnance Factory Katni (OFKAT) Ø Ordnance Factory Muradnagar (OFM) Ø Ordnance Factory Project Nalanda (OFN) Ø Ordnance Factory Project Medak (OFPM) Ø Ordnance Factory Tiruchirapalli (OFT) Ø Ordnance Factory Vrangaon (OFV) Ø Opto Electronics Factory (OLF) Ø Ordnance Parachute Factory (OPF) Ø Rifle Factory Ishapore (RFI) Ø Small Arms Factory (SAF) Ø Vehicle Factory Jabalpur (VFJ)
Headquarters:	Ø Armoured Vehicle Head Quarters Ø Ordnance Equipment Factories Head Quarters (OEFHQ) Ø Ordnance Factory Board (OFBHQ)
Ordnance Factories Institute of Learning:	Ø National Academy of Defence Production (NADP) Ø Ordnance Factory Institute of Learning Ambajhari (OFILAJ) Ø Ordnance Factory Institute of Learning Ambernath (OFILAM) Ø Ordnance Factory Institute of Learning Avadi (OFILAV) Ø Ordnance Factory Institute of Learning Dehradun (OFILDD) Ø Ordnance Factory Institute of Learning Ishapore (OFILIS) Ø Ordnance Factory Institute of Learning Khamaria (OFILKH) Ø Ordnance Factory Institute of Learning Kanpur (OFILKN) Ø Ordnance Factory Institute of Learning Medak (OFILMK)
Regional Marketing Centres:	Ø Regional Marketing Centre Avadi (RMCAV) Ø Regional Marketing Centre Delhi (RMCDL) Ø Regional Marketing Centre Pune (RMCPU)
Regional Controller of Safety:	Ø Regional Controller of Safety Ambajhari (RCSAJ) Ø Regional Controller of Safety Avadi (RCSAV) Ø Regional Controller of Safety Kanpur (RCSKN) Ø Regional Controller of Safety Pune (RCSPU)

DIRECTORS

Name :	Mr. A. K. Lamba
Designation :	Director General Ordnance Factories (DGOF) and Chairman, OFB
Date of Birth/Age :	15.12.1946
IOFS Officer Since:	01.12.1972
Chairman Since:	01.09.2006
Name :	Mr. S. K. Sharma
Designation :	Additional Director General Ordnance Factories (DGOF) and AVHQ
Date of Birth/Age :	18.07.1947
IOFS Officer:	01.12.1972
Name :	Mr. Sudipta Ghosh
Designation :	Member / M and C
Date of Birth/Age :	25.04.1949
IOFS Officer Since:	23.12.1970
Member Since:	14.12.2004
Name :	Mr. B. C. Biswas
Designation :	Member / Weapons, Vehicles and Equipments (WV and E)
Date of Birth/Age :	09.02.1948
IOFS Officer Since:	01.12.1972
Member Since:	04.10.2005
Name :	Mr. A. M. Naik
Designation :	Member / Ammunition and Explosives (A and E)
Date of Birth/Age :	13.10.1948
IOFS Officer Since:	07.02.1973
Member Since:	19.01.2006
Name :	Mr. Ramesh Chandra
Designation :	Additional Director General Ordnance Factories (DGOF) and OEFHQ
Date of Birth/Age :	01.01.1948
IOFS Officer Since:	01.12.1972
Member Since:	01.02.2006
Name :	Mr. Subir Mikhppadhyay
Designation :	Member/ Finance
Date of Birth/Age :	30.01.1948
IOFS Officer Since:	28.12.1971
Member Since:	09.02.2005
Name :	Mr. G. V. Shivakumar
Designation :	Member/ Technical Services (TS)
Date of Birth/Age :	18.12.1946
IOFS Officer Since:	18.12.1972
Member Since:	01.09.2006
Name :	Mr. Harman Singh
Designation :	Member/ Personnel
Date of Birth/Age :	01.01.1947
IOFS Officer Since:	01.12.1972
Member Since:	12.04.2006
Name :	Mr. B. S. Bhatia
Designation :	Member/ Planning and Material Management (P and MM)
Date of Birth/Age :	20.08.1949
IOFS Officer Since:	01.12.1972
Member Since:	01.01.2006

BUSINESS DETAILS

Line of Business :	Subject is engaged in Production, Testing, Logistics, Research, Development and Marketing of a comprehensive product range in the area of Land, Sea and Air Systems.
Products :	Ø Weapons Ø Ammunitions, Explosives, Propellants and Chemicals Ø Military Vehicles Ø Optical Devices Ø Parachutes Ø Support Equipment Ø Troop Comfort and General Stores Ø Material, Components and SPMs Ø Sporting Arms and Ammunition
Exports :
Countries :	· Nepal · Thailand · Malaysia · Germany · Turkey · USA · Indonesia · Oman · Sri Lanka · Bangladesh · Israel · Egypt

GENERAL INFORMATION

Customers :	Government Departments Ø Indian Army Ø Indian Navy Ø Indian Air Force Ø Ministry of Home Affairs Civil Trade
No. of Employees :	Several Thousand
Bankers :	State Bank of India

Banking Relations :	Good
Auditors :	Not Available

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Divulged
Borrowed :	Not Divulged
Total :	Not Divulged

FINANCIAL DATA

[all figures are in Rupees Millions]

NOT DIVULGED

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

LOCAL AGENCY FURTHER INFORMATION

WEBSITE DETAILS:

FIELD GUN FACTORY KANPUR:

PROFILE:

Field Gun Factory located on Kalpi Road (NH-2) at a distance of 10 kms. from Kanpur Central railway station on way to Jhansi is the youngest member of the Weapons, Vehicles and Equipment (WV and E) group Ordnance of factories.

In view of the importance given to ordnance production in the wake of the Indo-Pak war of 1965 and the Bangladesh Liberation war of 1971, it was seen that the load for Ordnance Factory, Kanpur was much more than its capacity. It was then decided by the Government to establish a new factory, which should be a self-contained unit for production of Field Guns. While designing the factory, the approach followed was that ordnance should be manufactured in this factory right from preparation of desired grade of steel to final assembly, proof and issue. With the advantage of a large area of land being available, the layout of Field Gun Factory was designed very scientifically. The shops were planned in one row in the order of the initial operation to the last operation.

The factory spreads over an area of 104.10 Hectares , out of which 40.49 hectares only is the yet covered area. As many as 53.61 hectares, strategically located in this industrial city is waiting to be gainfully utilized.

The infrastructure has been designed very scientifically and consists of industrial/ commercial buildings and services viz power supply, water supply, sewage, air conditioning, drainage system, compressed air supply etc., taking care of the futuristic expansion of the factory.

Production facilities in both Metallurgical and Engineering sectors exists with the latest technology available.

Field Gun Factory, Kanpur synonymous with its appellation, has an unique capacity of manufacturing various types of Field Guns commensurate with country's Defence needs. The factory has a set up with all types of the latest and sophisticated production processing equipments right from melting, forging to finish machining with a built in superlative degree of excellence in quality.

As part of its diversification programme, the product range of the factory has been further expanded and the factory is catering to the demands of civilian market in government and private sectors and also personal weapons.

The factory believes in producing stores of highest international quality which is revealed from the fact that the factory has implemented International Quality Management System standard (ISO 9001: 2000) in all spheres of its production activities. The factory is also having a NABL accredited lab. To ensure that all the measurement devices and instruments, used in production activities are calibrated to International Standards.

INDIAN ORDNANCE FACTORIES:

PROFILE:

Subject organisation - a family of 40 Ordnance Factories under the aegis of its corporate headquarters Ordnance Factory Board, Kolkata - possesses the unique distinction of over 200 years experience in defence production. They are engaged in production, testing, logistics, research, development and marketing of a comprehensive product range in the area of land, sea and air systems.

HISTORY:

The Beginning

The history and development of Indian Ordnance Factories is directly linked with the British reign in India. East India company of England for their economic interest in India and to increase their political hold considered military hardware as vital element. During 1775 British authorities accepted the establishment of Board of Ordnance in Fort William, Kolkata. This marks the official beginning of the Army Ordnance in India.

In 1787 a gun powder factory was established at Ishapore which started production from 1791 ( at which location Rifle Factory was established in 1904). In 1801 a Gun Carriage Agency at Cossipore, Kolkata (presently known as Gun and Shell Factory, Cossipore) was established and production started from 18th March, 1802. This is the first Industrial establishment of Ordnance Factories which has continued its existence till date.

Growth of Indian Ordnance Factories

The growth of the Ordnance Factories leading to its present setup has been continuous but in spurts. There were 18 ordnance factories before India became independent in 1947. 21 factories have been established after independence - mostly, in wake of defence preparedness imperatives caused by the three major wars fought by the Indian Armed forces. 40th Factory is under establishment at Nalanda, Bihar.

Main Events

Main events in the evolution of Ordnance Factory can be listed as below:

1801 - Establishment of Gun Carriage Agency at Cossipore, Kolkata.

1802 - Production started from 18th March 1802 at Cossipore.

1906 - The Administration of Indian Ordnance Factories came under a separate charge as 'IG of Ordnance

Factories'.

1933 - Charged to 'Director of Ordnance Factories'.

1948 - Placed under direct control of Ministry of Defence.

1962 - Dept. of Defence Production was set up at Ministry of Defence.

1979 - Ordnance Factory Board came into existence from 2nd April

OFB IN BRIEF:

Introduction

Indian Ordnance Factories is a giant industrial setup which functions under the Department of Defence Production of the Ministry Defence. Indian Ordnance Factories, headquartered at Kolkata, is a conglomerate of 39 Factories, 9 Training Institutes, 3 Regional Marketing Centres and 4 Regional Controller of Safety.

Today OFB along with its 39 factories spread over India provide

Ø A broad and versatile production base with multi-technology capabilities

Ø State of the art manufacturing facilities

Ø Large reservoir of skilled and professionally qualified manpower and managerial personnel

Ø Strict adherence to  quality standard (all the units are ISO-9000 certified)

Ø Original as well as adaptive research and development to make need based refinement and modifications

Ø Project engineering capability

Ø A strong base for industrial training facilities

Ø Ready market access due to convenient location

Geographical Spread

There are 39 Ordnance Factories geographically distributed all over the country at 24 different locations. A visual idea of how their factories and headquarters are distributed can be had from their location.

Name of State/ Union Territory	Number of factories
Maharashtra	10
Uttar Pradesh	8
Madhya Pradesh	6
Tamil Nadu	6
West Bengal	4
Uttaranchal	2
Andhra Pradesh	1
Chandigarh	1
Orissa	1

The 40th Factory is being set up at Nalanda in Bihar.

Technology

Their products must be safe in handling, reliable and perform consistently during actual operation with equal efficiency under varying and extreme conditions of climate. The plant and technologies have been so chosen as to ensure high degree of quality and reliability and is a unique blend of old and the most modern stae-of-the-art CNC technologies. The manufacturing process covers wide spectrum of engineering - Mechanical, Electrical, Metallurgical, Chemical, Textile, Leather, Optics and Electronics.

It is their endeavour to manufacture world-class products without compromising with the safety aspects of products and processes. Adherence to safety standards is given highest priority and a well laid down safety norm as well as diaster management plan exists in the organisation.

Civil Trade

Besides the above, they have a large number of customers in the civil sector - government departments, PSUs, private companies and individuals, etc. - who purchase industrial chemicals, explosives, Non Prohibited Bores (NPB) arms and ammunition, brass ingots, aluminium alloy products, steel castings and forgings, vehicles, clothing and leather goods, cables and opto-electronic instruments.

Exports

They are making vigorous marketing efforts to boost export by participating in International Exhibitions, product promotion through advertisement in the international media, interaction with visiting delegations from friendly countries, agents and the customer's representative, both in India and abroad.

They have been exporting their products by maintaining the foothold in traditional markets of Nepal, Thailand, Malaysia, Germany, Turkey and making efforts for emerging new markets like USA, Indonesia, Oman, Sri Lanka, Bangladesh, Israel and Egypt.

Arms and Ammunition, Weapon Spares, Chemicals and Explosives, Leather and Clothing items have been exported to the developing countries as well as to the developed nations worldwide.

Indian / civil trade customers

Indian customers wishing to buy civilian (NPB) arms and ammunition can download application forms for booking. Factory's telephone numbers are given in the application forms. The respective factory should be contacted directly for any further information.

Other civil trade customers should contact the units / factories directly for items mentioned against them in the table below.

Factory Name	Main Items
AFK	Sporting Ammunition
OFBA	NC Propellant
OFDR	Pyrotechnics (Fog Signal, Signal Cartridge, etc.)
HEF	Explosives / chemicals (TNT, IPN, Styphnic Acid, PEK, etc.)
OFK	Explosive Filling, Cartgs .303" and 9 mm
OFV	7.62 mm and 5.56 mm ammunition
OFIT	Nitric Acid, Picrite
CFA	Industrial NC, BSNC
OFCH	Explosive filling
SAF	.32 Revolver
RFI	.315 Rifle, .22 Rifle, .22 Revolver
FGK	.32 Revolver, armature shaft, steel blooms
GSF	.32 Pistol, Projector Pyro 13 / 16 mm
GIF	Steel Castings (M.T. Housing, Brake Block, SGCI Inserts, etc.)
GCF	12 Bore Pump Action Gun
VFJ	Vehicles, DG sets
OFC	Gauges, Pipe moulds, Step down hollow shaft, etc.
OFT	7.62 mm Rifle spares
OFDC	Fabrication
OFA	Brass Ingots, CC Coils and Strips
OFAJ	Al. Alloy Castings, Extruded Rods, Billets, etc.
MSF	Brass Ingots, Steel forgings, axles, etc.
OFKAT	Brass Ingots
OCFC	Cables
OFBH	Barrels
MPF	.32 revolver, Gears, engineering spares etc.
HAPP	Tungsten Alloy Components
OFM	Steel castings
OEFHQ	Cloth and leather items - Shirts, Trousers, Coat, Sleeping Bags, Tents, Parasail, Parachutes, Net Mosquito, Boots, etc.
OFDUN	Night Vision Devices
OFPM	Bullet proofing, Engineering spares, Pressure plates, etc.
OLF	Optical items (lens, mirror, polishing of sapphire, etc.)

Foreign customers / agents

For export enquiries

Marketing and Export Division

Ordnance Factory Board
Ayudh Bhawan , 10-A, S. K. Bose Road, Kolkata - 700001, India
Tel. No.: 91-33-2248 9027 / 2248 2103 / 2248 5077-80
Fax No.: 91-33-2248 1748/2210 8235
Email: ofbtrade@dataone.in

ofbtrade@vsnl.net

For General Information:

The Secretary
Ordnance Factory Board
Ayudh Bhawan , 10-A, S. K. Bose Road, Kolkata - 700001, India
Tel. No.: 91-33-22481209 / 22489744
Fax No.: 91-33-22482927
Email: ofboard@giascl01.vsnl.net.in

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.51.83
UK Pound	1	Rs.79.42
Euro	1	Rs.65.90

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.