MIRA INFORM REPORT

Report Date :

10.03.2012

IDENTIFICATION DETAILS

Name :	BHATIA INTERNATIONAL LIMITED
Formerly Known As :	BHATIA COAL CORPORATION
Registered Office :	BCC House, 8/5, Manorama Ganj, Navratan Bagh, Main Road, Indore-452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.08.1999
Com. Reg. No.:	10-13713
Capital Investment / Paid-up Capital :	Rs.94.098 Millions
CIN No.: [Company Identification No.]	U23101MP1999PLC013713
TAN No.: [Tax Deduction & Collection Account No.]	BPLB01119G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Traders and Importers of Indigenous Coal.
No. of Employees :	700 (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 15400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established and reputed 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 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.

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 / Corporate Office :	BCC House, 8/5, Manorama Ganj, Navratan Bagh, Main Road, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-4066101 / 2498101 / 4200211
Fax No.:	91-731-2498102 / 4066102
E-Mail :	cs@bhatiacoalindia.com info@bhatiacoalindia.com bcchowse@vsnl.com
Website :	http://www.bhatiacoalindia.com
Regional and Branch Offices:	Located at: · Ahmedabad · Chandrapur · Chennai · Mumbai · Nagpur · Porbandar · Surat · Vizag

DIRECTORS

As on 29.09.2011

Name :

Mr. Surinder Singh Bhatia

Designation :

Chairman cum Managing Director

Address :

Plot No.13 and 14, Aditya Nagar, Indore – 452001, Madhya Pradesh, India

Date of Birth/Age :

09.08.1963

Date of Appointment :

01.01.2004

DIN No.:

00038741

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	L65922MP1993PLC007767	BHATIA INDUSTRIES AND INFRASTRUCTURE LIMITED	Whole-time director	19/10/2009	8/07/1993	-	Active	NO
2	U63090MP1995PLC009476	BCC CARGO LIMITED	Director	25/05/1995	25/05/1995	-	Active	NO
3	U10102MP1997PLC011857	BCC ENTERPRISES (INDIA) LIMITED	Director	28/04/1997	28/04/1997	-	Active	NO
4	U70102MP1997PTC012118	BCC ESTATES PRIVATE LIMITED	Director	9/07/1997	9/07/1997	-	Active	NO
5	U23101MP1999PLC013713	BHATIA INTERNATIONAL LIMITED	Managing director	1/07/2011	1/01/2004	-	Active	NO
6	U15540MP1966PTC001016	BHATIA SOFTWARE AND REALTORS PRIVATE LIMITED	Director	5/05/2004	5/05/2004	-	Active	NO
7	U51101MP1997PLC012380	ISHHAR OVERSEAS LIMITED	Director	4/03/2005	4/03/2005	-	Active	NO
8	U10100MP2008PLC020780	BHATIA COAL WASHERIES LIMITED	Director	13/06/2008	13/06/2008	6/07/2011	Active	NO
9	U40100MP2008PLC020787	BHATIA COKE AND ENERGY LIMITED	Director	13/06/2008	13/06/2008	-	Active	NO
10	U74140MP1974PLC015187	RELIANCE SERVICES AND CONSULTANTS LIMITED	Director	30/09/2009	1/08/2009	-	Active	NO
11	U14200MP2009PLC022462	BHATIA NATURAL RESOURCES LIMITED	Director	5/10/2009	5/10/2009	-	Active	NO
12	U10100MP2009PLC022493	BHATIA SONS (INDIA) LIMITED	Director	13/10/2009	13/10/2009	-	Active	NO
13	U45203MP2009PLC022492	BHATIA PORT AND INFRASTRUCTURE LIMITED	Director	13/10/2009	13/10/2009	-	Active	NO
14	U10100MP2009PLC022514	BHATIA OSL WASHERIES AND MINERALS LIMITED	Director	16/10/2009	16/10/2009	-	Active	NO
15	U70100MP2010PTC023650	GSB REAL ESTATES PRIVATE LIMITED	Director	28/05/2010	28/05/2010	-	Active	NO
16	U70101MP2010PTC023930	SSB LAND DEVELOPERS PRIVATE LIMITED	Director	16/07/2010	16/07/2010	-	Active	NO
17	U40100MP2010PLC024232	BHATIA ENERGY LIMITED	Director	1/09/2010	1/09/2010	-	Active	NO
18	U60200MP1991PLC006626	BHATIA GLOBAL TRADING LIMITED	Managing director	1/07/2011	30/06/2011	-	Active	NO

Name :

Mr. Amandeep S. Bhatia

Designation :

Whole Time Director

Address :

360, Vishnupuri Nx, Indore – 452001, Madhya Pradesh, India

Date of Birth/Age :

23.10.1981

Date of Appointment :

27.08.2003

DIN No.:

00038591

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	U70102MP1997PTC012118	BCC ESTATES PRIVATE LIMITED	Director	31/03/2003	31/03/2003	-	Active	NO
2	U23101MP1999PLC013713	BHATIA INTERNATIONAL LIMITED	Whole-time director	1/10/2010	27/08/2003	-	Active	NO
3	U74140MP1974PLC015187	RELIANCE SERVICES AND CONSULTANTS LIMITED	Director	30/09/2008	16/06/2008	-	Active	NO
4	U40100MP2008PLC020787	BHATIA COKE AND ENERGY LIMITED	Director	30/09/2009	21/06/2008	-	Active	NO
5	U10100MP2008PLC020780	BHATIA COAL WASHERIES LIMITED	Additional director	10/12/2011	21/06/2008	-	Active	NO
6	U60200MP1991PLC006626	BHATIA GLOBAL TRADING LIMITED	Director	30/09/2009	1/08/2009	-	Active	NO
7	U14200MP2009PLC022462	BHATIA NATURAL RESOURCES LIMITED	Director	5/10/2009	5/10/2009	-	Active	NO
8	U40100MP2010PLC024232	BHATIA ENERGY LIMITED	Director	1/09/2010	1/09/2010	-	Active	NO
9	U10100MP2009PLC022493	BHATIA SONS (INDIA) LIMITED	Director	30/09/2011	2/07/2011	-	Active	NO

Name :

Mr. Prem Prakash Agarwal

Designation :

Director

Address :

FICS 103, Shalimar Township, A B Road, Indore – 452010, Madhya Pradesh, India

Date of Birth/Age :

14.10.1942

Date of Appointment :

17.02.2005

DIN No.:

00038545

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	U23101MP1999PLC013713	BHATIA INTERNATIONAL LIMITED	Director	17/02/2005	17/02/2005	-	Active	NO
2	U40100MP2008PLC020787	BHATIA COKE AND ENERGY LIMITED	Director	29/09/2011	30/06/2011	-	Active	NO
3	U10100MP2008PLC020780	BHATIA COAL WASHERIES LIMITED	Director	29/09/2011	30/06/2011	-	Active	NO

Name :

Mr. Jitendra Kumar Jain

Designation :

Director

Address :

H. No. 745, Road No. 8, Nanda Nagar, Indore – 452011, Madhya Pradesh, India

Date of Birth/Age :

30.06.1963

Date of Appointment :

01.08.2000

DIN No.:

00051878

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	U63090MP1995PLC009476	BCC CARGO LIMITED	Director	30/09/2009	25/05/1995	-	Active	NO
2	L65922MP1993PLC007767	BHATIA INDUSTRIES AND INFRASTRUCTURE LIMITED	Director	26/08/1997	26/08/1997	-	Active	NO
3	U23101MP1999PLC013713	BHATIA INTERNATIONAL LIMITED	Director	1/08/2000	1/08/2000	-	Active	NO
4	U45201MP2008PTC020296	FCC ENTERPRISES AND INFRASTRUCTURE PRIVATE LIMITED	Director	5/02/2008	5/02/2008	1/06/2011	Active	NO
5	U51101MP1997PLC012380	ISHHAR OVERSEAS LIMITED	Director	30/09/2009	1/08/2009	-	Active	NO
6	U10100MP2008PLC020780	BHATIA COAL WASHERIES LIMITED	Director	30/09/2009	12/08/2009	6/07/2011	Active	NO
7	U40100MP2008PLC020787	BHATIA COKE AND ENERGY LIMITED	Director	30/09/2009	12/08/2009	27/07/2011	Active	NO
8	U10100MP2009PLC022493	BHATIA SONS (INDIA) LIMITED	Director	13/10/2009	13/10/2009	2/07/2011	Active	NO
9	U45203MP2009PLC022492	BHATIA PORT AND INFRASTRUCTURE LIMITED	Director	13/10/2009	13/10/2009	-	Active	NO
10	U60200MP1991PLC006626	BHATIA GLOBAL TRADING LIMITED	Director	23/09/2010	20/10/2009	-	Active	NO
11	U10102MP1997PLC011857	BCC ENTERPRISES (INDIA) LIMITED	Director	23/09/2010	10/02/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Gurvinder Singh Bhatia (HUF)	240709
Ishhar Overseas Limited, India	687286
BCC Cargo Limited, India	656000
Surinder Singh Bhatia (HUF)	340380
G S Bhatia Family Trust, India	1720
S. S. Bhatia Family Trust, India	2300
BCC Enterprises (India) Limited, India	1195000
Bhatia Global Trading Limited, India	641000
BCC Estates Private Limited, India	53000
Reliance Services and Consultants Limited, India	79000
Gurpreet Singh Bhatia	19482
Inshipal Singh Bhatia	79922
Rupalpreet Kaur Bhatia	3166
Surinder Singh Bhatia Jointly with Gurvinder Kaur	2026786
Gurvinder Kaur Bhatia Jointly with Surinder Singh Bhatia	235299
Ishipal Kaur Bhatia Jointly with Mr. Gurvinder Singh Bhatia	5500
Veena Bhatia Jointly with Gurvinder Singh Bhatia	55932
Amandeep Singh Bhatia Jointly with Gurvinder Singh Bhatia	595165
Gurvinder Singh Bhatia Jointly with Veena Bhatia	1303630

Names of Shareholders	No. of Preference Shares
BCC Enterprises (India) Limited, India	1067000
Total	1067000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Directors or relatives of Directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Traders and Importers indigenous coal.

Products :

• Indigenous Coal
• Washed Coal
• Lignite Coal
• Steaming Coal
• Coking Coal

Item Code No. (ITC Code)	27.01
Product Description	Coal
Item Code No. (ITC Code)	27.04
Product Description	Coke
Item Code No. (ITC Code)	270119.20
Product Description	Steam Coal

PRODUCTION STATUS

Particulars	Unit	31.03.2011
Installed Capacity
Coke Ovens	MT Tones	168000
Deshelling Divisions – Ghughus, Wani and Jharsuguda	MT Tones	9000000
Actual Production
Coke Oven	MT Tones	44557
Job Work- Coke Oven	MT Tones	50910
Processing- Washery Divisions	MT Tones	2901371

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

· State Bank of Indore, 5, Yeshwant Niwas Road, Indore – 452003, Madhya Pradesh, India

· Bank of Baroda, 13, Old Palasia, A.B. Road Branch, Indore – 452018, Madhya Pradesh, India

· State Bank of Mysore- Indore

· State Bank of India- Indore

· UCO Bank of India- Indore

· Union Bank of India – Indore

· Bank of Punjab – Indore

· Industrial Development Bank of India – IDBI Tower, World Trade Complex, Cuffe Parade, Mumbai – 400 005, Maharastra, India

· Industrial Bank of India – Indore

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans	0.000	607.327
Working capital loans banks secured	3386.511	6708.469
Loans taken for vehicles secured	0.000	102.376
Deposits secured	0.000	88.648
Other debt secured	191.178	8.519
Total	3577.689	7515.339
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans directors unsecured	94.000	5.862
Total	94.000	5.862

Banking Relations :	--
Auditors :
Name :	R. S. Bansal and Company Chartered Accountants
Address :	Urvashi, 1st Floor, 3 Jaora Compound, Indore, Madhya Pradesh, India
PAN.:	AABFR4852J
Associates :	· Bhatia Global Trading Limited CIN No.: U60200MP1991PLC006626 · Bhatia Coke and Energy Limited CIN No.: U40100MP2008PLC020787 · Bhatia Coal Washeries Limited CIN No.: U10100MP2008PLC020780 · Bhatia Industries and Infrastructure Limited CIN No.: L65922MP1993PLC007767 · BCC Cargo Limited CIN No.: U63090MP1995PLC009476 · BCC Enterprises (India) Limited CIN No.: U10102MP1997PLC011857 · BCC Estates Private Limited CIN No.: U70102MP1997PTC012118 · Ishhar Overseas Limited CIN No.: U51101MP1997PLC012380 · Bhatia Natural Resources Limited CIN No.: U14200MP2009PLC022462 · Bhatia Sons (India) Limited CIN No.: U10100MP2009PLC022493 · Bhatia Port and Infrastructure Limited CIN No.: U45203MP2009PLC022492 · Reliance Services And Consultants Limited CIN No.: U74140MP1974PLC015187 · Pure Oils And Products Limited CIN No.: U15141MP2008PLC020746 · Bhatia OSL Washeries and Minerals Limited CIN No.: U10100MP2009PLC022514 · Bhatia International Pte. Limited · Pt Bhatia International Limited · Ishhar Overseas FZE · IOF Pte Limited
Others :	Bhatia Logistic

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions
2000000	9% Cumulative Redeemable Preference Share	Rs.10/- each	Rs.20.000 Millions
	TOTAL		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8491277	Equity Shares	Rs.10/- each	Rs.84.913 Millions
1067000	9% Cumulative Redeemable Preference Share	Rs.10/- each	Rs.10.670 Millions
	Forfeited Shares	Rs.10/- each	Rs.1.485 Millions
			Rs.94.098 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		94.098	102.928	102.928
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3755.455	2537.514	2105.637
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3849.553	2640.442	2208.565
LOAN FUNDS
1] Secured Loans		3577.689	7515.339	1911.910
2] Unsecured Loans		94.000	5.862	0.864
TOTAL BORROWING		3671.689	7521.201	1912.774
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Balances of Subsidiary Companies		0.000	0.000	4655.582
TOTAL		7521.242	10161.643	8776.921
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.621	1274.570	1219.739
Capital work-in-progress		31.880	316.078	270.701
INVESTMENT		60.614	44.503	29.730
DEFERREX TAX ASSETS		0.000	12.045	15.322
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1865.030	2899.983	2951.703
	Sundry Debtors	8479.431	7683.729	7860.884
	Cash & Bank Balances	2163.130	1761.429	1550.574
	Other Current Assets	2438.476	249.774	0.000
	Loans & Advances	940.673	865.428	578.739
Total Current Assets		15886.740	13460.343	12941.900
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7876.029	3838.660	5047.762
	Other Current Liabilities	469.475	906.658	440.915
	Provisions	164.109	200.578	211.794
Total Current Liabilities		8509.613	4945.896	5700.471
Net Current Assets		7377.127	8514.447	7241.429
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7521.242	10161.643	8776.921

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	41376.236	28179.233	55902.981
		Other Income	141.816	175.668	20.846
		TOTAL (A)	41518.052	28354.901	55923.827
Less	EXPENSES
		Consumption materials changes inventories	38010.732	25641.278
		Manufacturing service costs	387.177	432.141
		Employee related expenses	153.610	152.807
		Administrative selling other expenses	1367.436	1188.274	55022.734
		Research development expenditure	28.290	19.995
		Restructuring charges	909.753	0.000
		Prior Items before tax	(3.158)	(9.763)
		TOTAL (B)	40853.840	27424.732	55022.734
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		664.212	930.169	901.093
Less	FINANCIAL EXPENSES (D)		139.591	116.915	247.637
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		524.621	813.254	653.456
Less/ Add	DEPRECIATION/ AMORTISATION (F)		143.672	184.138	163.409
	PROFIT BEFORE TAX (E-F) (G)		380.949	629.116	490.047
Less	TAX (H)		139.950	168.276	177.648
	PROFIT AFTER TAX (G-H) (I)		240.999	460.840	312.399
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1420.204	1030.752	782.589
Less	APPROPRIATIONS
		Transfer to General Reserve		47.500	40.500
		Proposed Dividend	202.436	20.486	20.288
		Tax on Dividend		3.402	3.448
	BALANCE CARRIED TO THE B/S		1458.767	1420.204	1030.752
	EARNINGS IN FOREIGN CURRENCY
		Freight from Re-letting	938.110	318.407	446.531
		Demurrage/Dispatch	312.984	18.743	223.698
		Merchandise Trade on FOB Basis	498.228	405.869	6167.559
		Commission received	568.030	0.000	1.638
		Claims and Settlements	0.000	0.000	1.738
		Agency Fee	2.656	0.000	0.000
	TOTAL EARNINGS		2320.008	743.019	6841.164
	IMPORTS
		CIF Value of Imports	24910.016	19468.457	29576.408
	TOTAL IMPORTS		24910.016	19468.457	29576.408
	Earnings Per Share (Rs.)		27.76	45.43	30.80

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.58	1.63	0.57
Net Profit Margin (PBT/Sales)	(%)	0.92	2.23	0.88
Return on Total Assets (PBT/Total Assets}	(%)	2.39	4.27	3.49
Return on Investment (ROI) (PBT/Networth)		0.10	0.24	0.22
Debt Equity Ratio (Total Liability/Networth)		3.16	4.72	3.45
Current Ratio (Current Asset/Current Liability)		1.87	2.72	2.27

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW

During the year, the Company has posted the Sales of Rs. 41376.200 Millions and Profit after Tax of Rs.241.000 Millions. The Sales of the Company is increased by 46.84% and Profit after Tax is decreased by 47.70% as compared to the previous year. During the year company handled 977,817 Metric Tons of Indigenous Coal and 8,158,846 Metric Tons of Imported Coal.

TRANSFER OF UNTERTAKINGS VIA SLUMP SALE

With effect from 31 January, 2011 the Company has sold off via slump sale 3 (Three) Business Divisions st namely Coal Trading (Stock and Sale) Division, Coke Oven Division and Coal Washery Division in terms of approvals of the shareholders under section 293 (1) (a) of the Companies Act, 1956 and other provisions, if any, of all other applicable Laws/Statutes/Acts, the Company has executed 3 (Three) individual Business Transfer Agreements with 3 companies namely, Bhatia Global Trading Limited (Formerly known as Bhatia Coal Trading and Consignment Private Limited), Bhatia Coke and Energy Limited and Bhatia Coal Washeries Limited.

The business of Trading of Coal (Public Sector and Tender Business) shall continue to be with the Company as the Company will continue to pursue the said business and participate in various tenders floated by the enterprises both under the public and private sector. The company foresees good future business prospects under the retained business division and shall look forward for further business opportunities in times to come.

BUSINESS OPERATIONS:

The Company has been persistently catering to the requirements of imported Coal of Public Sector in India and grew as second largest player in India to cater this particular sector. Looking to the demand of Imported Coal in Public Sector in India, the Company has focused its attention to grab the opportunity in this segment. The Company has participating in various Tenders floated by Public Sectors.

During the year, the Company has been awarded the tender from M/s. MAHAGENCO, Mumbai for supply of 2.88 Million MT of imported coal. In addition to above, the Company has also awarded the prestigious tender from State Trading Corporation Limited, New Delhi for handling the imported coal of 2.40 Million MT in consortium with overseas Group Concern M/s. Bhatia International Pte. Limited, Singapore

INCREASE IN AUTHORISED SHARE CAPITAL

During the year, the Authorized Capital of the Company has been increased from Rs. 130.000 Millions divided into 1,30,00,000 Equity Shares of Rs. 10/- each to Rs. 150.000 Millions divided into 1,30,00,000 Equity Shares of Rs. 10/- each and 20,00,000 9% Cumulative Redeemable Preference Shares of Rs. 10/- each with the approval of members in the Extra-ordinary General Meeting of the Company held on 15th January, 2011.

Bankers Charges Report as per Registry

Corporate identity number of the company	U23101MP1999PLC013713
Name of the company	BHATIA INTERNATIONAL LIMITED
Address of the registered office or of the principal place of business in India of the company	BCC House, 8/5, Manoramaganj, Navratan Bagh , Main Road, Indore, Madhya Pradesh – 452001, India Email : cs@bhatiacoalindia.com
This form is for	Creation of charge
Type of charge	(Corporate Guarantee)
Particular of charge holder	Bank of Baroda, 13, Old Palasia, A.B. Road Branch, Indore – 452018, Madhya Pradesh, India Email : colind@bankofbaroda.com
Nature of instrument creating charge	Deed of Corporate Guarantee dated 14.02.2011
Date of instrument Creating the charge	14.02.2011
Amount secured by the charge	Rs.1250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest N.A. Terms of repayment N.A. Margin N.A. Extent and operation of the charge Corporate Guarantee is extended in favour of Bank

a. Contingent Liability not provided for :

i. Bills Discounted with Banks – Rs.659.487 Millions

ii. Bank Guarantees issued in favour of Customers/ various Parties – Rs.5166.154 Millions

iii. Corporate Guarantees issued on behalf of Group Companies USD 129 Million (previous year USD 123.25 Million) – Rs.5752.110 Millions

(Conversion Rate on the date of Balance Sheet + US $ / Rupee = 44.59)

iv. Performance Guarantees issued on behalf of Group Companies. USD 30 Million (previous year.USD 60 Million) – Rs.1337.700 Millions

(Performance guarantees given in respect of purchases of 2 new ships ( previous year 4 new ships), pending actual draw down from the Group Company’s bankers (Bank of Scotland) as per stage of Ship construction, stipulated by shipyards.

FIXED ASSETS

• Head Office
• Land and Site Development
• Factory Building
• Office Building
• Office Equipment
• Computers
• Commercial Vehicles
• Furniture and Fixtures
• Plant and Machinery
• Washery Chinchala
• Branch Korba
• Washery Ghuggus
• Coke Oven Plant
• Deshaling Division

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.50.02
UK Pound	1	Rs.79.01
Euro	1	Rs.66.18

SCORE & RATING EXPLANATIONS

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