MIRA INFORM REPORT

Report Date :

13.01.2012

IDENTIFICATION DETAILS

Name :	MBE COAL AND MINERAL TECHNOLOGY INDIA PRIVATE LIMITED
Formerly Known As :	Humboldt Wedag Minerals India Private Limited Mcnally Humboldt Wedag Minerals India Private Limited
Registered Office :	Ecospace Campus, 2B/11F/12, (Old No. II/BLK 3), (Old Plot No II/Blk- 3), New Town, Rajarhat, Kolkata – 700156, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.2009
Com. Reg. No.:	01-137428
Capital Investment / Paid-up Capital :	Rs.3.493 Millions
CIN No.: [Company Identification No.]	U27100WB2009PTC137428
TAN No.: [Tax Deduction & Collection Account No.]	CALH03558C
PAN No.: [Permanent Account No.]	AACCH2574H
Legal Form :	Private Limited Liability Company
Line of Business :	Turnkey Engineering and Project Execution of Coal and Mineral Beneficiations Plants
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 680000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – 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/ Head Office :	Ecospace Campus, 2B/11F/12, (Old No. II/BLK 3), (Old Plot No II/Blk- 3), New Town, Rajarhat, Kolkata – 700156, West Bengal, India
Tel. No.:	91-33 -30142350 / 66282350
Mobile No.:
Fax No.:	91-33-30142233/ 2234/ 66282233/2234
E-Mail :	indra.chatterjee@mbecl.co.in avinash.pareek@mbecl.co.in Sales.mbehumboldt@mbecl.co.in
Website :	http://www.mbehumboldt-cmt.com
Factory :	Plot 1A, Sector-B, Industrial Growth Centre, Nimpura, P.O. Rakhajungal, Kahragpur 721301, Midnapur, West Bengal, India
Tel. No.:	91-3222-733336
Fax No.:	91-3222-33358
Branches :	Located at Mumbai Chennai Bokaro

DIRECTORS

As on 31.05.2011

Name :

Mr. Deepak khaitan

Designation :

Director

Address :

10, Queens Park, Ballygunge, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

09.05.1955

Date of Appointment :

14.01.2010

DIN No.:

00023780

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	L01132WB1949PLC017715	Williamson Magor and Company Limited	Director	13-08-81	13-08-81	-	Active	NO
2	L01132AS1915PLC000200	B and A Limited	Director	26-09-86	26-09-86	22-03-07	Active	NO
3	L67120AS1971PLC001358	Williamson Financial Services Limited	Director	26-11-91	26-11-91	-	Active	NO
4	U67120WB1993PLC058690	Babcock Borsig Limited	Director	29-04-93	29-04-93	-	Active	NO
5	L31402WB1934PLC007993	Eveready Industries India Limited	Director	10-08-11	23-11-94	-	Active	NO
6	L45202WB1961PLC025181	Mcnally Bharat Engineering Company Limited	Whole-time director	12-08-11	17-11-95	-	Active	NO
7	L15491WB1977PLC031134	Moran Tea Company (India) Limited	Director	23-06-03	23-06-03	-	Active	YES
8	L24232WB1987PLC042956	Kilburn Engineering Limited	Director	16-07-04	16-07-04	-	Active	NO
9	L51109WB1998PLC087076	Mcleod Russel India Limited	Director	16-02-05	16-02-05	-	Active	NO
10	U85110WB1995PLC115165	Powercell Battery India Limited	Director	07-10-05	07-10-05	-	Active	YES
11	L15491WB2002PLC112000	Doom Dooma Tea Company Limited	Director	23-01-06	23-01-06	-	Not Available for eFiling	NO
12	L28999WB1943PLC133247	Mcnally Sayaji Engineering Limited	Director	06-11-09	15-09-08	-	Active	NO
13	U27100WB2009PTC137428	Mbe Coal and Mineral Technology India Private Limited	Director	14-01-10	14-01-10	-	Active	NO
14	U74999WB2011PLC162493	Litez India Limited	Director	10-05-11	10-05-11	-	Active	NO

Name :

Mr. Prasanta Kumar Chandra

Designation :

Director

Address :

Flat No. 5J, Tower III, City High, 85A, Shah Road, Kolkata – 700068, West Bengal, India

Date of Birth/Age :

01.02.1957

Date of Appointment :

27.10.2009

DIN No.:

01919454

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	U45400WB2008PLC123453	Mcnally Bharat Infrastructure Limited	Director	03-03-08	03-03-08	-	Active	NO
2	U27100WB2009PTC137428	MBE Coal and Mineral Technology India Private Limited	Director	27-10-09	27-10-09	-	Active	NO
3	L45202WB1961PLC025181	Mcnally Bharat Engineering Company Limited	Whole-time director	14-02-11	14-02-11	-	Active	NO

Name :

Bhagabati Prasad Misra

Designation :

Director

Address :

346, DDA Flats, Pocket – 2, Sector – 9, Dwarka, New Delhi – 110075, India

Date of Birth/Age :

17.10.1952

Qualification :

B Sc (Engineering) – Chemical Engineering and M Tech – Chemical Engineering

Experience :

33 Years

Date of Appointment :

27.10.2009

DIN No.:

01320170

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	U29253DL1976PTC216812	Humboldt Wedag India Private Limited	Director	29-06-07	08-11-06	31-03-09	Active	NO
2	U27100WB2009PTC137428	MBE Coal and Mineral Technology India Private Limited	Director	27-10-09	27-10-09	31-03-11	Active	NO
3	U29253DL2010PTC211352	Westech Process Equipment India Private Limited	Director	13-12-10	13-12-10	-	Active	NO

Name :

Mr. Gurudas Mustafi

Designation :

Director

Address :

1/524, 1^st Floor, Jodhpur Park, Kolkata – 700068, West Bengal, India

Date of Birth/Age :

20.02.1953

Date of Appointment :

27.10.2009

DIN No.:

02879447

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.05.2011

Names of Shareholders	No. of Shares
Prabir Kumar Ghosh	1
MBE Holding Private Limited, Singapore	349322
TOTAL	349323

Equity Share Break up (Percentage of Total Equity)

As on 31.05.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Turnkey Engineering and Project Execution of Coal and Mineral Beneficiations Plants

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Slurry pumps	Nos.	NA	42	--
Vibrating screen	Nos.	NA	72	15
Vibrating screen centrifuge	Nos.	NA	10	1
Batac jig. Etc	Tonnes.	NA	150	--
Decanter centrifuge including solid bowl	Nos.	Na	80	79
Vibrating Palla Mill	Nos.	Na	1	--
Other spares	Nos.	NA	100	--

(As certified by the management and relied upon by the Auditors, being a technical matter)

GENERAL INFORMATION

Customers :

• S.V.Power Private Limited – Coal Washery at Korba
• Orissa Mining Corporation

No. of Employees :

Not Available

Bankers :

• ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital loans banks secured	34.429	0.000
Total	34.429	0.000
Footnotes (A) Secured by first charge by way of hypothecation of Company's entire stock of raw materials, work-in-progress, semi-finished and finished goods, consumable stores and spares and other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank, ranking pari passu with other participating bank, if any and Corporate Gurantee of McNally Bharat Engineering Limited (MBEL) in favour of ICICI Bank Limited.

Banking Relations :	--
Auditors :
Name :	Lovelock and Lewes Chartered Accountant
Address :	Y-14, Block – EP, Sector V, Salt Lake Electronic Complex, Kolkata – 700091, West Bengal, India
PAN.:	AABFL5878L
Holding Company :	MBE Holdings PTE ltd, Singapore MBE coal and Minerals Technology GmbH EWB-MBE International Kornyezetvedelmi Kft, Hungary (EWB-MBE) (formerly EWB-MBE International Environmental Limited)
Ultimate Holding company :	McNally Bharat Engineering Company Limited
Fellow subsidiaries and other companies which does not exercise control or significant influence over the Company :	McNally Sayaji Engineering Limited ( MSEL ) McNally Bharat Equipments Limited (MBEL) Cin No : L45202WB1961PLC025181 McNally Bharat Infrastructure Limited (MBIL) EWB Kornyezetvedelmi Kft, Hungary

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
349323	Equity Shares	Rs.10/- each	Rs.3.493 Millions

Note:

(A) *10,000 Equity shares are allotted as fully paid up in cash and 3,39,323 Equity Shares are allotted as fully paid up pursuant to a contract without payment being received in cash and held by its holding company, MBE Holding PTE Limited and its nominee.

(B) *10,000 Equity shares are allotted as fully paid up in cash and 3,39,323 Equity Shares are allotted as fully paid up pursuant to a contract without payment being received in cash and held by its holding company, MBE Holding PTE Limited and its nominee.

(C) *10,000 Equity shares are allotted as fully paid up in cash and 3,39,323 Equity Shares are allotted as fully paid up pursuant to a contract without payment being received in cash and held by its holding company, MBE Holding PTE Limited and its nominee.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.493	3.493
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		166.473	133.920
4] (Accumulated Losses)		0.000	0.000
NETWORTH		169.966	137.413
LOAN FUNDS
1] Secured Loans		34.429	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		34.429	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		204.395	137.413
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.132	13.179
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		4.813	12.534
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.514	89.244
	Sundry Debtors	527.094	490.991
	Cash & Bank Balances	34.368	23.294
	Other Current Assets	44.374	0.061
	Loans & Advances	63.985	55.868
Total Current Assets		751.335	659.458
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	348.171	172.041
	Other Current Liabilities	93.176	255.864
	Provisions	119.538	119.853
Total Current Liabilities		560.885	547.758
Net Current Assets		190.450	111.700
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		204.395	137.413

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	912.600	730.096
		Other Income	22.100	17.263
		TOTAL (A)	934.700	747.359
Less	EXPENSES
		Project Expenses	861.830	542.278
		Employee Remuneration and Benefits		71.920
		Administrative and Other Expenses		67.217
		Selling Expenses		6.386
		TOTAL (B)	861.830 (Including Financial Expenses)	687.801
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			59.558
Less	FINANCIAL EXPENSES (D)			19.146
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		72.870	40.412
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.810	5.535
	PROFIT BEFORE TAX (E-F) (G)		66.060	34.877
Less	TAX (H)		27.620	18.193
	PROFIT AFTER TAX (G-H) (I)		38.440	16.684
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	1.668
		Tax Dividend	5.890	0.580
		Proposed Dividend	0.000	3.494
	BALANCE CARRIED TO THE B/S		32.550	10.942
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	NA	9.300
	TOTAL EARNINGS		NA	9.300
	IMPORTS
		Purchase of Raw Materials	NA	35.916
	TOTAL IMPORTS		NA	35.916
	Earnings Per Share (Rs.)		110.04	47.76

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	4.11	2.23
Net Profit Margin (PBT/Sales)	(%)	7.24	4.78
Return on Total Assets (PBT/Total Assets}	(%)	8.69	5.19
Return on Investment (ROI) (PBT/Networth)		0.39	0.25
Debt Equity Ratio (Total Liability/Networth)		3.50	3.99
Current Ratio (Current Asset/Current Liability)		1.34	1.20

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL REVIEW

The first financial period reported last year was a truncated period from August 4, 2009 (being the date of demerger and formation of this Company) to March 31, 2010 and hence the figures are not comparable with the current year. However, the Profits have been higher and the EBITDA margins better than the previous period.

NEW BUSINESS

Coal and Minerals Division

Coal continues to be the major source of meeting the energy requirements of the power industry. Washed coal is the major raw material for steel, sponge iron and cement plants and washed coal availability being less, the demand for washeries is expected to go up. With the formation of a high level committee by the Government of India comprising of GOM, it is expected clearances from MoEF will be quicker compared to the year thereby enabling industries in both Public and Private Sectors to go ahead with the setting up of the coal and mineral beneficiation plants.

With AKW Germany as technical associates, the Company has received two orders for Chrome Ore Beneficiation Plant from Orissa Mining Corporation, execution of which is progress.

The industrial Centrifuge business continues to grow and in the year the Company bagged orders for 108 machines which till now is the highest. This trend is expected to continue in the coming years with greater control being imposed by the pollution control board in all the industrial units.

INDUSTRIAL RELATIONS

Relations with all employees and workers at all levels were cordial and a congenial atmosphere prevailed.

CONTINGENT LIABILITY

Demand for sales tax aggregating to Rs.21.053 millions ( PY : Rs.45.551 millions) for the financial year 2001-02, 2003-04, 2004-05, 2005-06, 2006-07 and 2007-08 is disputed by the company against which the company has preferred an appeal. The probable cash flow in respect of the above matter is not determinable at this stage.

FORM 8

Corporate identity number of the company	U27100WB2009PTC137428
Name of the company	HUMBOLDT WEDAG MINERALS INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ecospace Campus, 2B/11F/12, (Old No. II/BLK 3), (Old Plot No II/Blk- 3), New Town, Rajarhat, Kolkata – 700156, West Bengal Email : indra.chatterjee@mbecl.co.in
This form is for	Creation of charge
Type of charge	Book Debts Floating Charge
Particular of charge holder	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India Email : renu.agarwala@icicibank.com
Nature of instrument creating charge	Deed of Hypothecation dated July 01 2010
Date of instrument Creating the charge	01.07.2010
Amount secured by the charge	Rs.550.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per the sanction letter issued/ to be issued by the bank from time to time. Terms of Repayment : Repayment As per the sanction letter issued (Sanctioned Letter No.01/E01KOL/26531 dated 24.06.2010.) Margin: Inventory: 25%, Book Debts: (Cover Period 90 days): 25%, Extent and Operation of charge : First charge over the current assets of the company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge over the current assets including book debts of the company

FIXED ASSETS

• Leasehold Land
• Building
• Plant and Machinery
• Office Equipment
• Furniture and Fixture
• Motor Car
• Computer

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		47

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.