MIRA INFORM REPORT

Report Date :

05.10.2012

IDENTIFICATION DETAILS

Name :	MCNALLY BHARAT ENGINEERING COMPANY LIMITED
Formerly Name:	PRABHUDAYAL RAMKRISHNA PRIVATE LIMITED
Registered Office :	4, Mangoe Lane, 7^th Floor, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.07.1961
Com. Reg. No.:	21-25181
Capital Investment / Paid-up Capital :	4664072 Euro
CIN No.: [Company Identification No.]	L45202WB1961PLC025181
TAN No.: [Tax Deduction & Collection Account No.]	BLRM08976C / RCHM01882G
PAN No.: [Permanent Account No.]	AABCM9443R
Legal Form :	A Public Limited Liability Company. The Company's shares are Listed on the Stock Exchanges
Line of Business :	Manufacturing of Industrial Machinery and Equipment and also in Consultancy and Industrial Turnkey Projects.
No. of Employees :	Around 885 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

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

Maximum Credit Limit :	EURO 9810000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A1+ [Short Term Bank Facility]
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	12.09.2012

Rating Agency Name	CARE
Rating	A+ [Long Term Bank Facility]
Rating Explanation	Adequate degree of safety and low credit risk.
Date	12.09.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/Corporate Office :	4, Mangoe Lane, 7^th Floor, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-2213 8901-05 / 08 / 22480847 / 0919 / 65500725-39
Fax No.:	91-33-22480340 / 22485016 / 22303519
E-Mail :	mbecal@mbecl.co.in dbc@mbecl.co.in
Website :	http://www.mcnallybharat.com
Head / Corporate Office :	Ecospase, 11F/12 (Old Plot No. AA-II/Blk-3), New Town, Rajaarhat, North 24, Parganas, Kolkata - 700156, West Bengal, India
Tel. No.:	91-33-30141111 / 66281111
Fax No.:	91-33-30142277 / 66282277
E-Mail :	corporate@mcnallybharat.com mbecal@mbecl.co.in mbe.corp@mbecl.co.in
Work and Sales Office :	· PO Kumardhubi, Dist. Dhanbad, Jharkhand 828203, India Phone : 91-6540-273010 / 11 / 16 / 272235 / 197215 Fax : 91-6540-273024 / 273015 Email : mse.kdb@mbecl.co.in · Plot No.:M-16, ADDA Industrial Area, PO R.K.Mission, Asansol – 713305, West Bengal, India Phone : 91-341-6554031 / 6554490 Email : mse.asn@mbecl.co.in · 3rd Floor, Maruthi Towers, 9th Main, Ex. Chairman Layout, Banaswadi Main Road, Bangalore 560034, India Phone : 91-80-41153781-83 Fax : 91-80-41153784 Email : mse.blr@mbecl.co.in · Chhani Road, Baroda-390 002, India Phone : 91-265-2793650 / 2780791-95 Fax : 91-265-2791914 Email: mse.brd@mbecl.co.in
Branch Office:	LOCATED AT: · Mumbai · Ernakulam · Kolkata · Nagpur · Secunderabad · Chennai · Visakhapatnam · Vijaywada

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Deepak Khaitan
Designation :	Executive Chairman
Date of Appointment :	15.09.2008
Name :	Mr. Virendra Kumar Verma
Designation :	Director
Name :	Mr. Utsav Parekh
Designation :	Director
Date of Appointment :	10.09.2007
Name :	Mr. Amritanshu Khaitan
Designation :	Director
Name :	Mr. Subir Ranjan Dasgupta
Designation :	Director
Name :	Mr. Asim Kumar Barman
Designation :	Director
Date of Appointment :	01.12.2009
Name :	Mr. Aditya Khaitan
Designation :	Director
Name :	Mr. Sudipto Sarkar
Designation :	Director
Name :	Mr. P H Ravi Kumar
Designation :	Director
Name :	Mr. Prasanta Kumar Chandra
Designation :	Whole Time Director
Name :	Mr. Prabir Ghosh
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Prasanta Kumar Chandra
Designation :	Chief Operating Operation
Name :	Mr. Prabir Ghosh
Designation :	Chief Financial Officer
Name :	Mr. Sukanta Chattopadhyay
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	10037743	32.28
Sub Total	10037743	32.28
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	10037743	32.28
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3781722	12.16
Financial Institutions / Banks	140	0.00
Insurance Companies	1626673	5.23
Foreign Institutional Investors	1780417	5.73
Sub Total	7188952	23.12
(2) Non-Institutions
Bodies Corporate	5110247	16.43
Individuals
Individual shareholders holding nominal share capital up to Euro 1492537	4009322	12.89
Individual shareholders holding nominal share capital in excess of Euro 1492537	4284456	13.78
Any Others (Specify)	463098	1.49
Non Resident Indians	403880	1.30
Clearing Members	59218	0.19
Sub Total	13867123	44.60
Total Public shareholding (B)	21056075	67.72
Total (A)+(B)	31093818	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	31093818	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Industrial Machinery and Equipment and also in Consultancy and Industrial Turnkey Projects.

GENERAL INFORMATION

No. of Employees :

Around 885 (Approximately)

Bankers :

• Bank of India
• IDBI Bank Limited
• State Bank of India, Mumbai – 400 021, Maharashtra, India
• Canara Bank
• United Bank of India
• UCO Bank
• Oriental Bank of Commerce
• Indian Overseas Bank
• Union Bank of India
• ICICI Bank Limited
• ING Vysya Bank Limited
• Axis Bank Limited
• The Karur Vysya Bank Limited
• ANZ Grindlays Bank Limited, Kolkata – 700 001, West Bengal, India

Facilities :

SECURED LOAN	As on 31.03.2012 [In Euro]	As on 31.03.2011 [In Euro]
Term Loan
From Banks	5344029	4819597
From Others	15463	2970
Loan Repayable on Demand Form Banks [For security details]	51495776	32172358
TOTAL	56855268	36994925

NOTE:

[In Euro]

Axis Bank (1st pari passu charge basis for the Working Capital limit, except on the current assets charged to BG issuers for Specific Projects, if any, all the stock in trade both present and future consisting stock including raw material, stock in process, finished goods, cash and other current assets and Outstanding monies, receivables, claims and bills etc. 2nd pari passu charge, all the stock in trade both present and future consisting stocks including raw material, stock in process, finished goods, cash and other current assets etc and Outstanding monies, receivables, claims and bills etc. or at any other premises or place pertaining to the current assets charged to BG issuers for Specific Projects, if any.)	3677283	9562373
Bank of India (First pari passu basis charge on all tangible movable properties, stocks of steel, cement, stones and other infrastructures materials wherever situate or in transit-All the present and future book debts, outstanding, moneys, receivables, claims, bills etc.-All tangible movable machineries and plants (both present and future) or about the borrowers premises and godowns at Various Projects Sites.)	22666134	12771820
Canara Bank (Entire current assets of the company with other banks in the consortium, except for project related specific assets. The fixed assets of the erstwhile unit I of the company at Kumardhubi which is presently owned by its subsidiary McNally Sayaji Engineering Limited excluding vehicles/equipments/specific assets charged for specific borrower limit along with other banks in the consortium.)	718074	363462
ICICI Bank (First pari passu charge by way of hypothecation of the current assets of the company in a form and manner satisfactory to the Bank, ranking pari passu with other participating banks, if any, more particularly described in the Schedule to the Deed of Hypothecation.)	2131253	4706865
IDBI Bank (First charge on the current assets of the company at par with other consortium bankers.)	4524179	2145492
Indian Overseas Bank (First charge on the current assets of the Company on pari passu basis with other consortium member Banks. Documents to title of goods, accepts Hundies/Draft of relative merchandise procured under Letter of Credit/Letter of Guarantee related debtors. Pari passu 1st charge on the fixed assets at Kumardhubi, Jharkhand.)	888283	(731)
ING Vysya Bank (Entire current assets of the company with other banks in the consortium, except for project related specific assets. The fixed assets of the erstwhile Unit I of the company at Kumardhubi which is presently owned by its subsidiary McNally Sayaji Engineering Limited excluding vehicles/ equipments/specific assets charged for specific borrower limits along with other banks in the consortium.)	500731	13671
Karur Vysya Bank (First pari passu charge on entire current asset including stock of RM, Semi Finished goods, plant and machinery, articles, consumables, stores and spares and components or other similar movable property, book debts, outstanding monies, receivables, claims, bills, rights, etc. both present and future inclusive of proposed projects on pari passu basis with other WC lender.)	5948805	2223402
Oriental Bank of Commerce (Hypothecation of stocks of raw materials, stocks in process, finished goods, stores and spares and receivables on pari passu basis with consortium member bank)	586283	5850
Punjab National Bank (Hypothecation of Stock of raw materials, stock in process, finished goods lying at Company's premises or site situated all over India and book debts (present and future) excluding advance payment or progress payment made by the company. The charge will be on pari passu basis with the consortium banks.)	99000	000
State Bank of India (First charge on entire moveable faxed assets pertaining to Kumardhubi Unit-1 of the Company viz. Plant and machineries, Stores and spares of plant and machineries, furniture, office equipments installed at the factory premises, lying loose or cases at godown, stores or elsewhere to the extent of Euro 4644776 in favour of State Bank of India on pari passu basis with other existing working capital lenders of MBE to secure working capital credit facilities of Euro 9701492 granted by SBI. First pari passu charger of hypothecation of RMs, SIP, FGs, Spares, Stores, Consumables, receivables and other current assets with other banks in the consortium).	6990970	382373
Union Bank (Pari passu first charge on the entire current assets viz. stocks of raw materials, WIP, semi finished and finished goods, stores and spares etc. and entire receivables of the Company with working capital lenders, both present as well as future to the extent of the Overall limit of Euro 5970149 together with interest, commission and other charges..Counter Indemnity of the Company.)	2226820	1552
United Bank of India (First pari-passu charge on stocks, job-in-progress, receivables and other current assets of the company, both present and future with other working capital lenders. Additional: First charge ranking pari passu with other working capital lending banks on fixed assets at Kumardhubi factory of the company.)	537955	(3776)
TOTAL	51495770	32172358

Banking Relations :	--
Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Solicitors:
Name:	Khaitan and Company S K Sawday and Company
Subsidiaries :	MBE Coal and Minerals Technologies India Private Limited (formerly Humbolt Wedag Minerals India Private Limited) McNally Sayaji Engineering Limited ( MSEL ) McNally Bharat Equipments Limited (MBEL) McNally Bharat Infrastructure Limited (MBIL) MBE Mineral Technologies Pte Limited (formerly MBE Holdings Pte Limited) MBE Minerals Zambia Limited Subsidiaries of MBE Mineral Technologies Pte Limited MBE Coal and Minerals Technologies GmbH EWB Kornyezetvedelmi Limited MBE Cologne Engineering Gmbh MBE Minerals (S.A.) (Proprietory) Limited Subsidiaries of MBE Coal and Mineral Technologies GmbH: MBE Mineral Processing Technology (Beijing) Company Limited MBE Mineral Processing of Brazil LTDA PT MBE Coal and Minerals Technology, Indonesia

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	0.15 Euro Each	6000000 Euro

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31093818	Equity Shares	0.15 Euro Each	4664072 Euro

NOTE:

(a) Reconciliation of Number of Equity Shares:

There was no movement of share capital during the year.

(b) Right and restrictions attached to shares:

Equity Shares: The company has one class of equity shares having apar value of 0.15 Euro per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,

(c) Shares held by holding company and subsidiary of holding company:

The company does not have a holding company.

(d) Aggregate shares in the Company

PARTICULAR	AS ON 31.03.2012		AS ON 31.03.2011
	No. of Shares	% Held	No. of Shares	% Held
Williamson Magor and Company Limited	3179748	10.23	1887247	6.07
Mcleod Russel India Limited	3052295	9.82	3052295	9.82
Kotak India Focus Fund	1680755	5.41	1680755	5.41
Janhit Seva Trust (J/H Sanjay Kumar Pasari and Shyam SunderJajodia)	--	--	3980600	12.80
IBC Knowledge Park Private Limited	--	--	1810253	5.82

FINANCIAL DATA

[all figures are in Euro]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4664072	4664072	4664072
2] Share Application Money		000	000	000
3] Reserves & Surplus		44396119	35106940	29003537
4] (Accumulated Losses)		000	000	000
NETWORTH		49060191	39771012	33667609
LOAN FUNDS
1] Secured Loans		56855268	36994925	30000119
2] Unsecured Loans		000	000	000
TOTAL BORROWING		56855268	36994925	30000119
DEFERRED TAX LIABILITIES		000	1741537	1400940
TOTAL		105915459	78507474	65068668
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17456776	15592134	13048223
Capital work-in-progress		16119	000	10940
INVESTMENT		26023641	23310910	23398119
DEFERREX TAX ASSETS		000	000	000
OTHER NON CURRENT ASSEST		000	141865	000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9466358	2089014	3936119
	Sundry Debtors	198964641	189067805	148412074
	Cash & Bank Balances	1802552	4791044	4868492
	Other Current Assets	31864089	20096283	12044283
	Loans & Advances	39593283	40463402	31255537
Total Current Assets		281690923	256507548	200516505
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	114636910	103309865	63158074
	Other Current Liabilities	93533298	108464373	106794358
	Provisions	11125000	5293955	1978582
Total Current Liabilities		219295208	217068193	171931014
Net Current Assets		62395715	39439355	28585491
MISCELLANEOUS EXPENSES		000	000	000
OTHERS		23208	23210	25895
TOTAL		105915459	78507474	65068668

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	310328820	262368791	221547746
		Other Income	1799328	2147597	446373
		TOTAL (A)	312128148	264516388	221994119
Less	EXPENSES
		Cost of Material Consumed	158672358	137175508
		Outsourcing Expenses to Outsiders For Job Works	78988224	63251881	208755897
		Employee Benefits Expenses	21489493	18083731
		Other Expenses	30309970	28511657
		TOTAL (B)	289460045	247022777	208755897
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22668103	17493611	13238222
Less	FINANCIAL EXPENSES (D)		9374089	5256343	4551895
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13294014	12237268	8686327
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1571835	1242477	739671
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		11722179	10994791	7946656
Less	TAX (H)		1924269	3843284	2768537
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		9797910	7151507	5178119
	EARNINGS IN FOREIGN CURRENCY
		Sale of Contracts	13851328	13416507	000
	TOTAL EARNINGS		13851328	13416507	000
	IMPORTS
		Components, Spare Parts and Stores	9001014	2704074	12003343
		Capital Goods	9940	000	802194
	TOTAL IMPORTS		9010954	2704074	12805537
	Earnings / (Loss) Per Share (Rs.)		0.32	0.23	0.17

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Net Sales	63867164
Total Expenditure	58835820
PBIDT (Excl OI)	5031343
Other Income	411940
Operating Profit	5443283
Interest	3076119
Exceptional Items	0
PBDT	2367164
Depreciation	468656
Profit Before Tax	1898507
Profit After Tax	595522
Net Profit	1302985

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.14	2.70	2.33
Net Profit Margin (PBT/Sales)	(%)	3.77	4.19	3.59
Return on Total Assets (PBT/Total Assets}	(%)	3.92	4.04	3.72
Return on Investment (ROI) (PBT/Networth)		0.23	0.28	0.23
Debt Equity Ratio (Total Liability/Networth)		5.63	6.39	6.00
Current Ratio (Current Asset/Current Liability)		1.28	1.18	1.17

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

HIGHLIGHTS

The key highlights of the operations for the financial year 2011-12 over the previous year are (based on standalone only in all cases):

· Total Income increased by 18%

· Earnings before Interest, Depreciation and Taxes increased by 26.6%

· Profit before Tax increased by 6.6%

· Earnings per Share increased by 37%

BUSINESS PERFORMANCE

The Directors are to report that 2011-12 turned out to be yet another excellent year during which the company achieved its highest ever turnover and profits. The total income for the year was Euro 312089552 as against Euro 264925373 during the previous year.

However, due to credit crunch faced by our clients across all sectors, collections and working capital management was a challenge, resulting in increased borrowings and higher interest charges.

PROJECT EXECUTION

During the year a large number of projects were at various stages of execution. Some of the major projects which were completed are:

• 800 TPH Coal Handling Plant for DVC, Chandrapura Thermal Power Station

• 750 TPH East Mill Copper Concentrator Plant for VEDANTA, Konkona Copper Mines, Zambia

• Ball Mill for Kenya Fluorspar

• Ash Handling Plant for DVC - Mejia Phase "B"- 1x500MW

• Ash Handling for 2x660 MW Power project for Essar Power Gujarat in Salaya

• Lead Zinc Concentrator at SK Mines for Vedanta.

ACTIVITY HIGHLIGHTS:

The Projects activities was realigned to reflect synergy in sectors they were operating in:

POWER PLANT PROJECTS:

Responsible for Power including complete power plants, Balance of Plant, Coal and Ash Handling plants, Water re-treatment and water projects for municipalities and other Industries, operations and maintenance of Power Plants.

METALS AND MINING PROJECTS:

Responsible for Coal and Metal Mines, Coal and Mineral Beneficiation, Steel Plants, Cement Plants, Oil and Gas sector and Ports.

INFRASTRUCTURE AND CONSTRUCTION PROJECTS:

Responsible for Infrastructure projects like Highways and Roads, Railways and MRTS, Bridges and Flyovers, Commercial and Residential Buildings, and townships, cross-country pipelines, transmission lines, Construction of power plants, steel plants, ports etc.

The company has ambitious plans to expand in Infrastructure projects and has been bidding for road, Metro, High rise buildings and other industrial construction projects and they expect to receive good order booking in this sector in 2012-1 3. The Infrastructure Projects and Construction Division has been strengthened by inducting senior professionals from the Industry.

The company, through its 100% subsidiary in Singapore, MBE Mineral Technologies Pte Limited. has acquired a 42% stake in Specialist Energy Group pic in UK (SEG). SEG owns Hayward Tyler Limited UK and Hayward Tyler Inc. USA. Hayward Tyler manufactures specialized pumps for Power, Nuclear and Oil and Gas Industry. The company has received the following prestigious awards during the year. In October 2011, the Deptt. Of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, GOI accorded recognition of our In-house R and D activities. Reputed International Consultants, KPMG had been engaged to develop the Operating Processes for the Infrastructure Projects and Construction Division to enable rapid scaling up of operations. The Center of Engineering Excellence (COEE) has been established to develop software based solutions for achieving automation in execution of day to day engineering of projects. Since inception, work has been completed for automation of Engineering and Drawing for various Material Handling system and equipment, Mills etc. This has resulted in significant saving in man-hours, material cost and project execution time. The company has received numerous Safety awards at project sites from clients such as SOLIOS, BHEL and Tata Projects Limited. More than 1 Million hours accident free operations were achieved at the following construction sites: Bellary Thermal Power Station and HINDALCO, Mahan.

SUBSIDIARIES

McNally Sayaji Engineering Limited (MSEL)

Some of the major orders received during the year:

• Rashi Steel and Power for various equipment including Ball Mills for Iron Ore Beneficiation plant

• Hindustan Dorr Oliver (client NMDC) for Grinding Mills

• HINDALCO, Renusagar power project for 2 Nos 400TPH skid mounted coal crushing plants

• Stemcor India Private Limited for Ball Mills

• Sesa Goa for Thickners, crushers, screens and feeders

• Thermax Ltd for single roll crusher, Hammer mill, Screen

• Bengal Tools for Apron Feeders and screens

• S K Samanta (client - BCCL) for Single Roll crusher

• Furnace Fabrica India Limited for Ball Mill

• IFFCO for chain mill

• Nava Bharat Energy Limited for single roll crusher

• Hamtek Technologies for single roll crusher Construction of the new plant at Savli in Vadodara is completed. The Department of Scientific and Industrial Research (DSIR), Mininstry of Science and Technology, GOI has accorded recognition to the In - house RandD activities of MSEL. During the year, the R and D department has successfully developed a 3 inch centrifugal slurry pump and a skid mounted coal crushing plant.

MBE Coal and Mineral Technology India Limited

Some of the major orders received during the period:

• Trade Serve International Private Limited for 150 TPH Coal Washery at Karachi with Batac Jig.

• NRE Metcoke Limited for 150 TPH Heavy Media Cyclone Washery with 80 TPH Fines Washing in Pneumatic Flotation Machine at Bachau.

• MSPL, Hospet for 100 TPH Iron Ore Jigging Plant.

• Janki Corporation, Bellary for 200 TPH Iron Ore Beneficiation Plant (WHIMS).

• For the first time export order received from South America for Design and Engineering works of Flotation Plant for VALE (Brazil) through MBE-CMT, Cologne, Germany.

• Order received from MBE-CMT, Cologne for Design and Engineering Works for Naryn Sukhai Coal Handling and Preparation Project at Mongolia.

• Order received for Design and Engineering for Pasir Coal Washery, Kideco in Indonesia from MBE-CMT, Cologne.

• Renewed contract for Operation and Maintenance of 1200 TPH Deshaling Plant at Bina Project of Northern Coalfields Limited for a period of 5 years.

Some of the major orders executed and commissioned during the period:

• Successfully commissioned 500 TPH Coal Washery Plant at Korba for S. V. Power Private Limited

• Successfully commissioned the Coarse Seed Filtration package for Vedanta Aluminum Limited, Lanjigarh, Orissa.

• Sales of centrifuges reached record high of 113 numbers surpassing the earlier high of 107 in 2010-11. "

MBE Mineral Technologies Pte Limited, Singapore

A 100% owned subsidiary of MBE has a number of companies under its fold.

• The MBE CMT Group comprising MBE Coal and Minerals Technology GmbH Cologne, MBE Minerals SA Ply Limited South Africa and operations in China, Russia, Indonesia and Brazil. The performance of the MBE CMT Group was satisfactory inspite of the European crisis and global slowdown

• Cologne Engineering and EWB Techologial left Budapest, have also performed satisfactorily under adverse conditions.

• Specialist Engineering Group (SEG)

MBE Mineral Technologies Pte Limited, has acquired controlling stake (42%) in Specialist Energy Group pic in UK (SEG). SEG owns Hayward Tyler Limited UK (HTL) and Hayward Tyler Inc. USA (HTI). HTL is one of the three global manufacturers of Boiler Circulating Pumps. Other products included pumps for special application, canned pumps used in Nuclear Power Plant, submersible motors, process pumps, pumps used in oil and gas sector, subsea pumps and pumps used in Submarine. HTI is a major player in Nuclear Power sector, specialising in service, overhauling of Nuclear Power Plants in USA. HTI has strong presence in special range of pumps used in Coal Power Generation, Nuclear Power, Syngas Power and speciality Chemical and Hydrogen processing.

MANAGEMENT DISCUSSION and ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

The GDP growth in 2011-12 was only 6.5% compared to 8.4% in the previous year. During 2011-12, the 8 core infrastructure industries grew by only 4.4%. These include crude oil, refinery products, coal, electricity, cement, steel, fertilizer and natural gas.
 
As per the revised projections done by the Planning Commission, the expected investment in Infrastructure during the 11th Plan period (2007-12) will be Rs 20.5 Lakh Crores. Sector wise the investments will be as follows: Power (31%), Roads and bridges (12%), Railways (7%), Oil and Gas (6%), Water Supply and Sanitation (5%) and Ports (3%). In most of these sectors, MBE is very active.
 
For the 12th Plan (2012-17), the Planning Commission has indicated that the investment in Infrastructure will double to Rs 41 Lakh Crores. A sector wise analysis is given below.
 
POWER
 
The thermal power capacity addition in 12th Plan (2012-17) is expected to be 67,686 MW compared to 50,757 MW addition during the 11th Plan (2007-12). In spite of this addition, McKinsey forecasts a power shortfall of 315 GW in 2017, whereas CEA forecasts a shortfall of 213 GW. With Coal India being advised to sign fuel supply agreements with power plants having long term power purchase agreements with Power distribution companies, they expect the investment in power sector to increase in 2012-13. Private sector participation in power generation has increased significantly and expected to contribute 40% in the 11th Plan.
 
As per Central Electricity Authority (CEA), there will be a requirement of 1,100 BOP packages during the 12h Plan comprising Coal handling and Ash Handling plants, water packages, cooling towers, chimney stacks and fuel oil systems. MBE is active in these areas.
 
STEEL
 

In 2011, India produced 72.2 Million Tons of steel and was the fourth largest producer in the world after China, Japan and USA. The installed capacity of Steel is expected to increase to 142 Million TPA by 2018 based on the assumption of 8% GDP growth.

 
Most of the additional capacity will be created in the Private sector, apart from a few in the public sector. EPC Packages in Steel Plants, where MBE has execution experience include raw material handling, Sinter plant, Byproducts recovery plant and coke oven batteries.
 
COAL AND MINING
 
India has vast reserves of many different minerals. It is the world`s third largest producer of coal, fourth largest producer of iron ore and fifth largest producer of bauxite. It also has significant reserves of copper, zinc, lead, lignite and other minerals.
 
Domestic coal production has been less than 600 million tons in 2011-12 and the demand supply gap is around 150 Million Tons, which is being met  by imports. By the end of the 12th Plan (2016-17), the demand for coal is expected to be 1000 million tons and the shortfall is expected to rise to 250 Million Tons, to be met from imports. Since the quality of coal available is poor, India will require more coal washeries and Coal India has a plan to set up 19 washeries. MBE with Technology from MBE Coal and Minerals Technology (formerly KHD Humboldt Wedag), is well placed to get a share of the coal washery market.
 
In iron ore beneficiation, further to the acquisition of the Coal and Mineral Technology business of KHD Humboldt Wedag, MBE hopes to do well with MBE-CMT`s Jigging and WHIMS technology.
 
Pelletization of unused iron ore fines will be needed in a big way to meet the growing demand of the steel industry. MBE hopes to play a significant role in setting up iron ore pelletization plants with International technology partners.
 
NON FERROUS METALS
 
Subject is a market leader in Mineral Beneficiation in India, having set up most of the plants for Copper, Lead and Zinc in India and presently executing two copper projects in Konkola Mines, Zambia.
 
Consumption of refined copper has been growing @ 10% annually and is projected to be 1.2 million tons by 201516. All the manufacturers, Hindusthan Copper, Sterlite and Birla have indicated expansion plans to meet the demand. Due to strategic reasons, there is significant thrust on exploration and processing of Uranium ore, where MBE has strong credentials.
 
The production capacity of aluminium at the end of the 12th Plan would be around 4.7 million tons, and alumina and bauxite requirement would be 9.2 million tons and 28 million tons respectively. India has abundant bauxite to meet the demand. 3 to 4 smelting and refining projects are expected to come up in the 12th Plan to meet the demand. International manufacturers like Anrak, Rio Tinto and Dubal have shown interest in entering the Indian market due to cost advantages. MBE having executed a number of projects in this sector, can look forward to significant business in future.
 
PORT and STOCKYARD EQUIPMENT
 
The current capacity of Indian Ports is around 813 Million Tons per year (MTPA) and capacity addition of 775 MTPA is planned by 2017. The demand for port cranes is a sum of requirement from new capacity as well as replacement of existing old cranes.
 
MBE has a license agreement with Kone Cranes to manufacture and supply Port and Shipyard cranes, and Poltegor for Stacker Reclaimers. MBE plans to increase its product range in this sector through tie-ups.
 
Due to increase in coal imports, there will be significant demand for stacker reclaimers and other bulk handling equipment in Ports, where MBE has a significant presence with Poltegor as technology partner.
 
INFRASTRUCURE
 
To improve the basic infrastructure, large investments will be needed in roads, railways, ports, civil aviation and water supply and sanitation during the 12th Plan. The investments planned in these sectors during the 12th Plan is Rs 11.4 lakh crores. Private sector investment through Public Private partnership (PPP) will be required to supplement public sector investments to achieve the plan.
 
MBE has significantly increased its focus in this area by strengthening the management team in Infrastructure and have gained significant success in obtaining orders in this sector.
 
NEW BUSINESSES
 
The Oil Refinery capacity is expected to grow from 182 MTPA in 2010 to 302 MTPA by 2017, which will involve a huge investment of nearly Rs 2.4 Lakh Crores. Cement capacity also is expected to increase from 275 Million Tons in 2010 to 440 Million Tons by 2017, averaging a capacity addition of 20 Million Tons annually.
 
OUTLOOK
 
The company has an order backlog of Euro 510000000 and they hope to continue our past growth trend this year also. Moreover, with a healthy GDP growth forecast of 8%, they expect the new order booking to be comfortable and as per Planned targets.
 

FIXED ASSETS:

· Land (Freehold And Leasehold)

· Buildings

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Refrigerators and Air Conditioners

· Office Equipment

· Telephone Plant

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 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.51.97
UK Pound	1	Rs.83.67
Euro	1	Rs.67.20

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.