MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	STESALIT LIMITED
Registered Office :	Park Plaza North 7^th Floor, Park Street, Kolkata – 700016, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.05.1981
Com. Reg. No.:	21-033700
Capital Investment / Paid-up Capital :	Rs.90.054 Millions
CIN No.: [Company Identification No.]	U3520WB1981PLC033700
TAN No.: [Tax Deduction & Collection Account No.]	CALS00077A
PAN No.: [Permanent Account No.]	AAECS0758A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The Company is engaged in manufacturing highly sophisticated electrical, electro-mechanical and electronic products for the Indian Railways, Atomic Power establishments and various other industries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 3100000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and well established company having satisfactory track. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 :	Park Plaza North 7^th Floor, Park Street, Kolkata – 700016, West Bengal, India
Tel. No.:	91-33-22654984/ 22654985/ 22654986/ 226549847
Fax No.:	91-33-22495309/ 22495305
E-Mail :	statutoryfiling@gmail.com office@stesalitltd.com
Website :	www.stesalitltd.com
Research and Development Centers :	Located at Kolkata and Baddi ( Himachal Pradesh)

DIRECTORS

As on: 30.09.2011

Name :

Mr. Arun Kumar Khemka

Designation :

Chairman cum Managing Director

Address :

3C, Loudon Street, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

21.08.1940

Date of Appointment :

26.05.1981

DIN No.:

00032526

Other Directorships :

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	U35204WB1981PLC033700	STESALIT LIMITED	Managing director	01-04-11	26-05-81	-	Active	NO
2	U52314WB1988PTC044250	MARUNA EXPORTS PRIVATE LIMITED	Director	27-04-88	27-04-88	-	Active	NO
3	U70101WB1994PTC062390	FASPOL CONSTRUCTIONS COMPANY PRIVATE LIMITED	Director	10-05-95	10-05-95	-	Active	NO
4	U31102WB1995PTC072038	STESALIT TELEMA ELECTRICALS PRIVATE LIMITED	Director	08-06-95	08-06-95	-	Active	NO
5	U72400WB1998PLC088315	STESALIT INFOTECH LIMITED	Director	23-11-98	23-11-98	-	Active	NO
6	U74999WB2002PTC094885	BASIL HEIGHTS MAINTENANCE PRIVATE LIMITED	Director	12-07-02	12-07-02	-	Active	NO
7	U32109WB2004PLC098389	LOGINN HOSPITALITY LIMITED	Director	23-04-04	23-04-04	-	Active	NO
8	U51100GJ1974PTC002552	SAPPHIRE TRADERS PRIVATE LIMITED	Director	22-05-05	22-05-05	10-04-10	Active	NO
9	U51909WB1995PTC071579	SAPPHIRE TRADERS PRIVATE LIMITED	Director	22-05-05	22-05-05	-	Active	NO
10	U31102HP2008PTC030875	STESALIT TELEMA RESISTORS PRIVATE LIMITED	Director	24-04-08	24-04-08	-	Active	NO
11	U72900WB2008PTC130396	SKYGEON SPATIAL SOLUTIONS PRIVATE LIMITED	Director	10-11-08	10-11-08	-	Active	NO
12	U31900HP2009PTC031109	DAYTON PHOENIX ELECTRICALS (INDIA) PRIVATE LIMITED	Director	29-05-09	29-05-09	-	Active	NO
13	U31908WB2010PLC155476	STESALIT SYSTEMS LIMITED	Director	07-12-10	07-12-10	-	Active	NO

Name :

Mr. Surendra Kumar Rajpal

Designation :

Director

Address :

4A, Nasiruddin Road, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

01.02.1935

Date of Appointment :

29.09.1988

DIN No.:

00300149

Other Directorships :

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	U35204WB1981PLC033700	STESALIT LIMITED	Director	29-09-88	29-09-88	-	Active	NO
2	U72400WB1998PLC088315	STESALIT INFOTECH LIMITED	Additional director	12-01-12	12-01-12	-	Active	NO

Name :

Mr. Hemant Khemka

Designation :

Whole Time Director

Address :

3C, Loudon Street, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

27.11.1971

Date of Appointment :

11.05.1995

DIN No.:

00032636

Other Directorships :

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	U35204WB1981PLC033700	STESALIT LIMITED	Whole-time director	01-10-09	11-05-95	-	Active	NO
2	U31102WB1995PTC072038	STESALIT TELEMA ELECTRICALS PRIVATE LIMITED	Director	08-06-95	08-06-95	-	Active	NO
3	U72400WB1998PLC088315	STESALIT INFOTECH LIMITED	Director	23-11-98	23-11-98	-	Active	NO
4	U70101WB1994PTC062390	FASPOL CONSTRUCTIONS COMPANY PRIVATE LIMITED	Director	10-02-03	10-02-03	-	Active	NO
5	U32109WB2004PLC098389	LOGINN HOSPITALITY LIMITED	Director	23-04-04	23-04-04	-	Active	NO
6	U31102HP2008PTC030875	STESALIT TELEMA RESISTORS PRIVATE LIMITED	Director	24-04-08	24-04-08	-	Active	NO
7	U72900WB2008PTC130396	SKYGEON SPATIAL SOLUTIONS PRIVATE LIMITED	Director	10-11-08	10-11-08	-	Active	NO
8	U31401HP2009PTC031036	JST STESALIT TRANSFORMERS PRIVATE LIMITED	Director	04-02-09	04-02-09	-	Active	NO
9	U31900HP2009PTC031109	DAYTON PHOENIX ELECTRICALS (INDIA) PRIVATE LIMITED	Director	29-05-09	29-05-09	-	Active	NO
10	U31908WB2010PLC155476	STESALIT SYSTEMS LIMITED	Director	07-12-10	07-12-10	-	Active	NO
11	U45202MH2010PTC204828	HARRODS REALTY PRIVATE LIMITED	Additional director	04-01-11	04-01-11	-	Under Process of Striking off	NO

Name :

Mr. Parag Kashae Bhattacharjee

Designation :

Director

Address :

BG -149, Sector -2, Saltlake, Kolkata – 700091, West Bengal, India

Date of Birth/Age :

18.01.1939

Date of Appointment :

30.06.2005

DIN No.:

00081899

Other Directorships :

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	L51909WB1991PLC053283	KANCO ENTERPRISES LIMITED	Director	03-09-99	03-09-99	-	Active	NO
2	L65993WB1897PLC001409	CHEVIOT COMPANY LIMITED	Director	30-07-01	30-07-01	-	Active	NO
3	L65922WB1987PLC043267	SBI HOME FINANCE LIMITED.	Director	19-04-04	19-04-04	-	Under liquidation	NO
4	U65991WB1995PLC071670	GLOBAL INVESTMENT TRUST LIMITED	Director	21-06-05	21-06-05	-	Active	NO
5	U35204WB1981PLC033700	STESALIT LIMITED	Director	30-06-05	30-06-05	-	Active	NO
6	U72200AP2000PLC033475	M.S.M. ENERGY LIMITED	Director	06-12-05	06-12-05	-	Active	NO
7	L51216WB1992PLC055629	KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED	Director	29-09-06	19-05-06	-	Active	NO
8	U45500WB2001PLC144017	QUIPPO INFRASTRUCTURE EQUIPMENT LIMITED	Director	16-09-06	16-09-06	-	Amalgamated	NO
9	L24117TN1990PLC019591	KILBURN CHEMICALS LIMITED	Director	29-01-07	29-01-07	-	Active	NO
10	L72300TN1993PLC024748	DHANUS TECHNOLOGIES LIMITED	Director	17-02-07	17-02-07	08-01-10	Active	NO
11	L40103AP1995PLC019554	SURYACHAKRA POWER CORPORATION LIMITED	Director	16-06-07	22-05-07	-	Active	NO
12	U65923WB2007PTC116670	ATIVIR FINANCIAL CONSULTANTS PRIVATE LIMITED	Director	30-09-08	07-01-08	-	Active	NO
13	U65990WB2009PTC139790	SREI MUTUAL FUND TRUST PRIVATE LIMITED	Director	19-05-11	03-12-09	24-12-11	Active	NO
14	U31908WB2010PLC155476	STESALIT SYSTEMS LIMITED	Director	07-12-10	07-12-10	-	Active	NO
15	U64203DL2005PLC138225	QUIPPO TELECOM INFRASTRUCTURE LIMITED	Director	30-09-11	08-02-11	-	Active	NO
16	U67190WB1995PLC074186	AMAZAN CAPITAL LIMITED	Director	30-09-11	01-04-11	-	Active	NO
17	U35203AP2007PLC057400	QUIPPO CONSTRUCTION EQUIPMENT LIMITED	Additional director	28-07-11	28-07-11	-	Active	NO
18	U45400WB2007PTC118781	SAPHIRE ENCLAVE PRIVATE LIMITED	Director	22-03-12	22-03-12	-	Active	NO
19	U45400WB2007PTC118776	WONDERLAND PROMOTERS PRIVATE LIMITED	Director	22-03-12	22-03-12	-	Active	NO
20	U45400WB2007PTC118777	RIGHT TOWERS PRIVATE LIMITED	Director	22-03-12	22-03-12	-	Active	NO

Name :

Alexander Demetrius Antoniadis

Designation :

Director

Address :

VIA Lucino 6932, Breganzoan Lugano – 6932, Swizerland

Date of Birth/Age :

01.04.1965

Date of Appointment :

30.06.2005

DIN No.:

03570875

Name :

Mr. Saubir Bhattacharyya

Designation :

Director

Address :

H1-1A, Darpa Narayan, Tagore Street, Kolkata – 700064, West Bengal, India

Date of Birth/Age :

02.09.1946

Date of Appointment :

24.06.2010

DIN No.:

01383195

Other Directorships :

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	U24211DL1954GOI002377	HINDUSTAN INSECTICIDES LIMITED	Director	04-12-06	04-12-06	19-09-07	Active	NO
2	U51109WB1995PLC074861	RDB TEXTILES LIMITED.	Director	15-09-08	15-09-08	08-09-10	Active	NO
3	U74140WB1991PTC051878	INKWEST MANAGEMENT CONSULTANTS PRIVATE LIMITED	Director	06-11-08	06-11-08	30-09-09	Active	NO
4	U45203AR2006PLC008234	EVEREST INFRA ENERGY LIMITED	Director	07-09-09	11-08-09	07-07-10	Active	NO
5	U35204WB1981PLC033700	STESALIT LIMITED	Director	29-09-10	24-06-10	-	Active	NO
6	U74900WB2009PTC134753	CSE CAPITAL MARKETS PRIVATE LIMITED	Additional director	06-12-10	06-12-10	20-06-11	Active	NO
7	L31901WB1953PLC021044	EMC LIMITED	Director	26-08-11	22-02-11	-	Active	NO

KEY EXECUTIVES

Name :	Me. Nilu Saluja
Designation :	Secretary
Address :	30 – 1a Darpa Narayan, Tagore Street, Kolkata – 700007, West Bengal, India
Date of Birth/Age :	03.11.1985
Date of Appointment :	16.09.2009
PAN No :	BUWPS8737F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Arun Kumar Khemka	1322510
A. K. Khemka (HUF)	1233500
Kusum Khemka	826000
Hemant Khemka	445000
Maruna Exports Private Limited, India	1678000
Sapphire Traders Private Limited, India	1687000
Jugraj Bhandari	490
ETA Star Holdings Limited, Dubai	1469149
Vellore Pattabiraman Nagarajan	93776
Ajay Dilkhush Sarupria	250000
Total	9005425

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

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	17.35
Bodies corporate	37.36
Directors or relatives of Directors	42.50
Other top fifty shareholders	2.79
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in manufacturing highly sophisticated electrical, electro-mechanical and electronic products for the Indian Railways, Atomic Power establishments and various other industries.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• UCO Bank, Flagship Corporate Branch, 2, India Exchange Place, Kolkata – 700001, West Bengal, India
• State Bank of India, Industrial Finance Branch, 11, DR. U.N. Brahmachari Street, Kolkata – 700017, West Bengal, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	297.579	272.591
Loans taken for fixed assets secured	4.935	4.301
Total	302.514	276.892

Banking Relations :
Auditors :
Name :	B Chhawchharia and Company Chartered Accountants
Address :	8A and 8B, Satyam Towers, 3 Alipore Road, Kolkata – 700027, West Bengal, India
PAN.:	AADFB3210F
Associates/Subsidiaries :	Stesalit Systems Limited (U31908WB2010PLC155476) Dayton Phoenix Electricals Private Limited (U31900HP2009PTC031109)
Joint Venture :	JST Stesalit Transformers Private Limited (U31401HP2009PTC031036) Himachal Transformers Private Limited
Related Parties	Maruna Exports Private Limited (U52314WB1988PTC044250) Sapphire Traders Private Limited (U51909WB1995PTC071579) Faspol Construction Company Private Limited (U70101WB1994PTC062390) Stesalit Infotech Limited (U72400WB1998PLC088315) Skygeon Spatial Solutions Private Limited (U72900WB2008PTC130396) Stesalit Telema Electricals Private Limited (U31102WB1995PTC072038)

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
14950000	Equity Shares	Rs.10/- each	Rs.149.500 Millions
5000	Preference Shares	Rs.100/-each	Rs.0.500 Million
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9005425	Equity Shares	Rs.10/- each	Rs.90.054 Millions

Note:

(A) 90,05,425 Equity Shares of Rs 10 each fully paid up (out of the above 67,20,000 have been allotted as fully paid up bonus shares by capitalisation of General Reserves)

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		90.054	90.054	90.054
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		690.721	528.034	398.543
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		780.775	618.088	488.597
LOAN FUNDS
1] Secured Loans		302.514	276.892	189.482
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		302.514	276.892	189.482
DEFERRED TAX LIABILITIES		8.215	10.054	10.854
TOTAL		1091.504	905.034	688.933
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		170.629	155.004	154.175
Capital work-in-progress		3.728	3.975	0.000
INVESTMENT		106.127	74.585	41.451
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	801.849	244.443	220.261
	Sundry Debtors	293.363	612.859	434.484
	Cash & Bank Balances	83.324	44.803	23.605
	Other Current Assets	6.603	6.180	0.000
	Loans & Advances	173.796	221.545	130.681
Total Current Assets		1358.935	1129.830	809.031
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	279.494	228.456	159.498
	Other Current Liabilities	168.173	88.184	91.082
	Provisions	100.248	141.720	65.184
Total Current Liabilities		547.915	458.360	315.764
Net Current Assets		81.102	671.470	493.267
MISCELLANEOUS EXPENSES		0.000	0.000	0.040
TOTAL		1091.504	905.034	688.933

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1794.846	1506.332	1248.331
		Other Income	18.868	44.679	4.001
		TOTAL (A)	1813.714	1551.011	1252.332
Less	EXPENSES
		Consumption materials changes inventories	1159.560	956.837
		Manufacturing service costs	108.410	103.667
		Employee related expenses	170.288	141.854
		Administrative selling other expenses	86.024	85.442
		TOTAL (B)	1524.282	1287.800	1062.528
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		289.432	263.211	189.804
Less	FINANCIAL EXPENSES (D)		42.226	34.041	22.150
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		247.206	229.170	167.654
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.768	13.215	9.468
	PROFIT BEFORE TAX (E-F) (G)		231.438	215.955	158.186
Less	TAX (H)		47.817	39.210	23.353
	PROFIT AFTER TAX (G-H) (I)		183.621	176.745	134.833
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		303.571	224.081	99.783
Less	APPROPRIATIONS		70.933	97.255	10.536
		Transfer to General Reserve
		Dividend
		Tax on Dividend
	BALANCE CARRIED TO THE B/S		416.259	303.571	224.051
	Earnings Per Share (Rs.)		20.39	19.63	14.97

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.12	11.39	10.77
Net Profit Margin (PBT/Sales)	(%)	12.89	14.34	12.67
Return on Total Assets (PBT/Total Assets}	(%)	15.13	16.81	16.42
Return on Investment (ROI) (PBT/Networth)		0.30	0.35	0.32
Debt Equity Ratio (Total Liability/Networth)		1.09	1.19	1.03
Current Ratio (Current Asset/Current Liability)		2.48	2.46	2.56

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U35204WB1981PLC033700
Name of the company	STESALIT LIMITED
Address of the registered office or of the principal place of business in India of the company	Park Plaza North 7^th Floor, Park Street, Kolkata – 700016, West Bengal, India E-mail: statutoryefiling@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80013541
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Movable Plant and Machinery etc.
Particular of charge holder	UCO Bank, Flagship Corporate Branch, 2, India Exchange Place, Kolkata – 700001, West Bengal, India E-mail: bo.mcciep@ucobank.co.in
Nature of instrument creating charge	(1) Deed of hypothecation of stocks to secure demand cash credit. (2) Deed of hypothecation of book debts to secure demand cash credit. (3) Agreement for extension of charge by way of hypothecation over current assets to secure non-fund based facilities, (4) Deed of hypothecation of movable Plant and Machinery etc. (5) Letters confirming extension of equitable mortgage by deposit of title deeds.
Date of instrument Creating the charge	07.01.2011
Amount secured by the charge	Rs550.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 3.80% Per annum over base rate which is at present 9.00% p.a. i.e. presently 12.80% p.a. with monthly rests subject to change by the Bank/RBI from time to time. Terms of repayments Repayable on demand Margin 25% on Stocks and 30% on Book debts. Extend and operation of the charge Exclusive charge in favour of UCO Bank, FCB, 2, India Exchange Place, Kolkata-700001. Others The hypothecated and mortgaged assets shall be insured against loss or damage under bank clause.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecated. Of stocks of Raw Materials, W I P, Finished Goods and other movables etc. Which now or hereafter from time to time stored or to be stored at the company premises/godowns/factory situated at Plat No.25 and 26, 35, 42, 43, 44, 17 and 114, Dic Industrial Area ,P.O.Baddi, Solan, Himachal Pradesh and In West Bengal (B B Trunk Road, Sarkarpur 24 Pgs(S), 1c,Tangra,2nd Lane, Kolkata, 29/7,Ballygunge Park, . Kolkata-700019; 25/1, Rustamji Street, Kolkata-700019; 3, Pagladanga Road, Kolkata-700015; 71, Topsia Road, Kolkata) or wherever else the same may be including goods in course of transit. Hypothecation of all present and future book debts, outstanding moneys, receivables, claims etc. Of the company. Hypothecation of all Plant and Machinery, Equipments, Tools etc. located at the company factory premises at Plat No.25 and 26,35,42,43,44,17 and 114 Dic Industrial Area, P.O.Baddi, Solan, Himachal Pradesh or wherever else. Equitable mortgage of all that piece and parcel of land under Plot No. 25 And 26,35,42,43,44 ,Industrial Area P.O.Baddi, District Solan, Tehsil. Nalagarh, Himachal Pradesh together with buildings, structure etc Equitable mortgage of all that pieces and parcels of leasehold land situated at Plot No. 114 and 17, Dic Industrial Area, P.O. Baddi, District Solan, Himachal Pradesh together with buildings, structure.
Date of instrument modifying the charge	09.09.2010
Particulars of the present modification	By this modification the overall working capital limits has been enhanced from Rs.450.000 Millions to Rs.550.000 Millions (rupees five hundred fifty Millions only) comprising of: Cash credit : Rs300.000 Millions (LC-LBD OF RS.50.000 Millions as sub limit OF C/C) ILC/FLC. : Rs.200.000 Millions B.G. : Rs.50.000 Millions all other terms, conditions and properties charged and mortgaged remain unaltered.

PERFORMANCE:

The total turnover of the Company for the year stood at Rs.1801.595 Millions as against Rs.1541.231 Millions achieved last year, an increase of 17%. The profit after Tax has increased from Rs.176.746 Millions to Rs.183.621 Millions, an increase of 4%.

The Company is engaged in manufacturing highly sophisticated electrical, electro-mechanical and electronic products for the Indian Railways, Atomic Power establishments and various other industries. The product line includes equipment for Electric Locomotives, Diesel Locomotives, Coaches, EMUs and Railway Signaling. The company has their R and D Centers located at Kolkata and Baddi (H.P.). On an ongoing basis the company keeps innovating and carrying our R and D and product innovations and development for the introduction of new products. These act as the growth drivers to the company. The company has demonstrated this and achieved growth with the introduction and innovation of new products. The company has alliances and joint ventures with world leaders, which has endorsed the brand of the company. This has further helped and exposed the company to the best technologies and practices in the world. The Company expects to nurture and engage more such relationships in the years ahead.

JOINT VENTURES:

The Company which has entered into the Joint Ventures in earlier years with world's leaders in their fields namely Telema SPA,Italyand JST Transformateurs SAS, France, has invested approximately Rs.70.000 Millions till date.

INDUSTRY OUTLOOK:

Indian Railway Minister in Railway Budget for 2011-12 has proposed investment of Rs.576300.000 Millions, the highest ever plan investment to provide efficient, customer focused and modern railway network. The thrust areas include enhancement of rail network routes, expansion of rail infrastructure, up gradation of stations, introduction and strengthening of suburban services, new projects under JV/PPP mode, implementation of more safety and security measures, improvement of amenities and better services at stations, electrification of more rail routes. These will open huge opportunities for the company to strengthen its long term business relationship and business growth with the Indian Railways.

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	As on 31.03.2011	As on 31.03.2010
Bank Guarantees issued in favour of third party	92.548	60.081
Letter of Credit opened in favour of supplier	16.589	13.337
Indemnity Bond given by the Company in favour of third parties	175.126	260.818
Estimated amount of contracts remaining to be executed on capital account but not provided	3.950	2.500
From Excise authorities authority for demand	9.507	14.280
Service Tax Authority for demand	4.433	24.013
Contested demand of Sales Tax	2.872	2.662
Income Tax Authority for demand	2.405	0.000

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.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

VRN

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	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		52

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.