MIRA INFORM REPORT

Report Date :

30.01.2014

IDENTIFICATION DETAILS

Name :	DOZCO (INDIA) PRIVATE LIMITED
Registered Office :	6, Waterloo Street, 3^rd Floor, Room No. 309, Kolkata – 700069, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.03.1992
Com. Reg. No.:	21-054998
Capital Investment / Paid-up Capital :	Rs. 25.804 Millions
CIN No.: [Company Identification No.]	U29130WB1992PTC054998
TAN No.: [Tax Deduction & Collection Account No.]	CALD01356F / CAHD04029E
PAN No.: [Permanent Account No.]	AABCD0776E
Legal Form :	Private Limited Liability Company
Line of Business :	Selling of Heavy Earth Moving and Construction Machinery Spare Parts and Equipments and also Manufacturing of Rock Breakers, Chisels and Components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 3570000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profitability of the company seems to be fair. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non-compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Cash Credit : BB+
Rating Explanation	Moderate risk of default
Date	October 8, 2013

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 Office :	6, Waterloo Street, 3^rd Floor, Room No. 309, Kolkata – 700069, West Bengal, India
Tel. No.:	91-33-22489809/ 2082/ 22101930/ 22482082/ 22305943/ 40066560
Fax No.:	91-33-22480604
E-Mail :	kolkata@dozco.com opbangur@dozco.com mailto:dozkkbms@md3.vsnl.net.in mailto:ngbdozco@cal3.vsnl.net.in info@dozco.com
Website :	http://www.dozco.com
Corporate Office :	Plot No. 243, Block D, Industrial Development Area, Auto Nagar, Visakhapatnam – 530012, Andhra Pradesh, India
Tel. No.:	91-891-2769681
Fax No.:	91-891-2769687
E-Mail :	vizag@dozco.com
Branch Offices :	Located at: · New Delhi Guwahati Udaipur Dhanbad Ahmedabad Satna Mumbai Raipur Bilaspur Nagpur Barbil Bhopal Barhi Kota Bhubaneshwar Hyderabad Bangalore Chennai

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Radhe Shyam Bangur

Designation :

Whole-time director

Address :

A-32, Minocha Colony, Mungeli Road, Bilaspur - 495001, Chattisgarh, India

Date of Birth/Age :

21.01.1952

Date of Appointment :

30.03.1992

PAN No.:

ACJPB8023D

DIN No.:

00120097

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U25199JH1990PTC003986	BANGUR RUBBER WORKS PRIVATE LIMITED	Whole-time director	02/04/1990	02/04/1990	Amalgamated	NO
2	U29130WB1992PTC054998	DOZCO (INDIA) PRIVATE LIMITED	Whole-time director	30/03/1992	30/03/1992	Active	NO
3	U51909WB1992PTC056527	GCB FINVEST PRIVATE LIMITED	Whole-time director	04/09/1992	04/09/1992	Active	NO
4	U71220WB2006PTC109476	DOZCO INFRATECH PRIVATE LIMITED	Whole-time director	19/05/2006	19/05/2006	Active	NO

Name :

Mr. Shiv Kumar Bangur

Designation :

Whole-time director

Address :

303, Amarjyoti Palace, Lokmat Square, Wardha Road, Nagpur – 440012, Maharashtra, India

Date of Birth/Age :

19.02.1954

Date of Appointment :

01.04.1994

PAN No.:

ACVPB5055F

DIN No.:

00120871

Name :

Mr. Om Prakash Bangur

Designation :

Whole-time director

Address :

Darpan 50-A, Purna Das Road, 3^rd Floor, Kolkata – 700029, West Bengal, India

Date of Birth/Age :

14.02.1957

Qualification :

B. Com, ACA

Date of Appointment :

30.03.1992

PAN No.:

AELPB3441H

DIN No.:

00091652

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29130WB1992PTC054998	DOZCO (INDIA) PRIVATE LIMITED	Whole-time director	30/03/1992	30/03/1992	Active	NO
2	U51909WB1992PTC056527	GCB FINVEST PRIVATE LIMITED	Whole-time director	04/09/1992	04/09/1992	Active	NO
3	U71220WB2006PTC109476	DOZCO INFRATECH PRIVATE LIMITED	Whole-time director	19/05/2006	19/05/2006	Active	NO
4	U70109WB1995PTC068174	SAMSUNG PROPERTIES PRIVATE LIMITED	Director	01/08/2006	01/08/2006	Active	NO
5	U74950WB1993PTC060732	M G B COMMERCIAL PRIVATE LIMITED	Director	03/10/2006	03/10/2006	Active	NO
6	U65921WB1994PTC151636	SINGH FINVEST PRIVATE LIMITED	Director	01/09/2011	01/09/2011	Active	NO
7	U52201WB1994PTC064706	SILKINA COMMODEAL PRIVATE LIMITED	Director	22/10/2011	22/10/2011	Active	NO
8	U70109WB2012PTC172466	DOZCO-PMAX INFRA (INDIA) PRIVATE LIMITED	Director	18/01/2012	18/01/2012	Active	NO

Name :

Mr. Ramesh Kumar Bangur

Designation :

Whole-time director

Address :

Plot No.243, D-Block, Industrial Development Area, Auto Nagar, Vishakhapatnam – 530012, Andhra Pradesh, India

Date of Birth/Age :

10.12.1958

Qualification :

B. Com

Date of Appointment :

30.03.1992

PAN No.:

ACJPB8853D

DIN No.:

00241628

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U25199JH1990PTC003986	BANGUR RUBBER WORKS PRIVATE LIMITED	Whole-time director	02/04/1990	02/04/1990	Amalgamated	NO
2	U29130WB1992PTC054998	DOZCO (INDIA) PRIVATE LIMITED	Whole-time director	30/03/1992	30/03/1992	Active	NO
3	U70102AP2005PTC047122	RADIANT DEVELOPERS PRIVATE LIMITED	Director	30/09/2010	15/07/2010	Active	NO

Name :

Mr. Nand Gopal Bangur

Designation :

Whole-time director

Address :

Plot No.243, D-Block, Industrial Development Area, Auto Nagar, Vishakhapatnam – 530012, Andhra Pradesh, India

Date of Birth/Age :

06.05.1964

Qualification :

M. Tech.

Date of Appointment :

30.03.1992

PAN No.:

ACVPB5237H

DIN No.:

00241593

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U25199JH1990PTC003986	BANGUR RUBBER WORKS PRIVATE LIMITED	Whole-time director	02/04/1990	02/04/1990	Amalgamated	NO
2	U29130WB1992PTC054998	DOZCO (INDIA) PRIVATE LIMITED	Whole-time director	30/03/1992	30/03/1992	Active	NO
3	U71220WB2006PTC109476	DOZCO INFRATECH PRIVATE LIMITED	Whole-time director	19/05/2006	19/05/2006	Active	NO
4	U70102AP2005PTC047122	RADIANT DEVELOPERS PRIVATE LIMITED	Director	30/09/2010	15/07/2010	Active	NO
5	U70109WB1995PTC068174	SAMSUNG PROPERTIES PRIVATE LIMITED	Director	30/09/2011	01/10/2010	Active	NO
6	U70109WB2012PTC172466	DOZCO-PMAX INFRA (INDIA) PRIVATE LIMITED	Director	18/01/2012	18/01/2012	Active	NO
7	U29248AP2012PTC084481	TAIHEIYO SEIKI (INDIA) PRIVATE LIMITED	Director	29/11/2012	29/11/2012	Active	NO

Name :

Mr. Kamal Kishor Bangur

Designation :

Whole-time director

Address :

248, Kilpauk Garden Road, Coral Orcheds, Chennai – 600010, Tamilnadu, India

Date of Birth/Age :

05.06.1968

Date of Appointment :

01.04.1994

PAN No.:

AAGPB6161K

DIN No.:

00091697

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U25199JH1990PTC003986	BANGUR RUBBER WORKS PRIVATE LIMITED	Whole-time director	02/04/1990	02/04/1990	Amalgamated	NO
2	U29130WB1992PTC054998	DOZCO (INDIA) PRIVATE LIMITED	Whole-time director	01/04/1994	01/04/1994	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 31.03.2013

Names of Shareholders	No. of Shares
Singh Finvest Private Limited, India	399000
MGB Commercial Private Limited, India	279300
Galaxy Merchants Private Limited, India	214800
Silkina Commodeal Private Limited, India	419625
Silkina Commodeal Private Limited, India	154500

AS ON 05.01.2013

Names of Allottee	No. of Shares
Silkina Commodeal Private Limited, India	174000
Total	174000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	69.64
Directors or relatives of directors	30.36
Total	100.00

BUSINESS DETAILS

Line of Business :

Selling of Heavy Earth Moving and Construction Machinery Spare Parts and Equipments and also Manufacturing of Rock Breakers, Chisels and Components.

Products/ Services :

ITC Code No.	Product Descriptions
73261910	Heavy Earthmoving and Mining Equipments

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India (Lead Bank), Commercial Branch, # 43-29-54/8, 1st Floor, Balaji Metro Chambers, Dondaparthy, Visakhapatnam - 530016, Andhra Pradesh, India

Indusind Bank Limited

ICICI Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Other loans and advances	10.215	8.964
SHORT TERM BORROWINGS
Other loans and advances	356.648	486.561
Total	366.863	495.525

Banking Relations :	--
Auditors :
Name :	R K Periwal and Company Chartered Accountants
Address :	165/1, Sarda Pally, Sector-2, Makhla, Hooghly – 712245, West Bengal, India
Income-tax PAN of auditor or auditor's firm :	AFNPP8149K
Associate Companies/ Entities :	· Dozco Infratech Private Limited [U71220WB2006PTC109476] GCB Finvest Private Limited MGB Commercial Private Limited [U74950WB1993PTC060732] Samsung Properties Private Limited [U70109WB1995PTC068174]
Subsidiary company :	Beijing Excon Equipment Company Limited

CAPITAL STRUCTURE

AFTER 30.09.2013

Authorised Capital : Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 26.963 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3,500,000	Equity Shares	Rs. 10/- each	Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,580,390	Equity Shares	Rs. 10/- each	Rs. 25.804 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	25.804	23.153	21.165
(b) Reserves & Surplus	868.126	714.977	595.790
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	893.930	738.130	616.955
(3) Non-Current Liabilities
(a) long-term borrowings	52.250	154.548	169.594
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.411	0.418	0.572
(d) long-term provisions	58.125	35.105	57.504
Total Non-current Liabilities (3)	110.786	190.071	227.670
(4) Current Liabilities
(a) Short term borrowings	702.869	592.178	189.480
(b) Trade payables	284.296	206.263	389.843
(c) Other current liabilities	93.492	96.204	101.500
(d) Short-term provisions	32.772	28.437	26.523
Total Current Liabilities (4)	1113.429	923.082	707.346
TOTAL	2118.145	1851.283	1551.971
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	311.337	216.088	159.565
(ii) Intangible Assets	0.551	0.551	0.551
(iii) Capital work-in-progress	16.644	6.766	25.575
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	40.154	40.154	40.154
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	90.420	66.721	92.280
(e) Other Non-current assets	22.624	26.701	26.961
Total Non-Current Assets	481.730	356.981	345.086
(2) Current assets
(a) Current investments	0.000	0.034	0.032
(b) Inventories	1146.009	1041.181	660.600
(c) Trade receivables	360.063	302.440	412.084
(d) Cash and cash equivalents	14.608	43.840	113.962
(e) Short-term loans and advances	72.060	23.997	20.207
(f) Other current assets	43.675	82.810	0.000
Total Current Assets	1636.415	1494.302	1206.885
TOTAL	2118.145	1851.283	1551.971

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	1566.300	1492.700	1455.500
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		196.023	230.542	120.729
Less	FINANCIAL EXPENSES (D)		91.450	140.165	39.446
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		104.573	90.377	81.283
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.050	19.477	16.346
	PROFIT BEFORE TAX (E-F) (G)		82.523	70.900	64.937
Less	TAX (H)		26.775	23.809	21.571
	PROFIT AFTER TAX (G-H) (I)		55.748	47.091	43.366
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		40.696	34.023	25.609
Less	APPROPRIATIONS
		Proposed Dividend	5.161	4.631	4.233
		Dividend Tax	0.837	0.787	0.719
		Transfer to General Reserve	40.000	35.000	30.000
	BALANCE CARRIED TO THE B/S		50.446	40.696	34.023
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on F.O.B. Basis		104.784	18.482
		Rebate/ Discount/ Incentive		29.466	31.947
		Warrantee Claim		3.955	0.827
	TOTAL EARNINGS		NA	138.205	51.256
	IMPORTS
		Material Purchased	NA	1045.447	696.065
	Earnings Per Share (Rs.)		21.60	20.34	20.49

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	4.00	3.93	4.37
Return on Investment (ROI) (PBT/Networth)		0.09	0.10	0.11
Debt Equity Ratio (Total Debt/Networth)		0.84	1.01	0.58
Current Ratio (Current Asset/Current Liability)		1.47	4.33	2.30

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	No
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10462744	25/11/2013	150,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	B90566498
2	10317743	15/11/2011	80,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, #43-29-54/8, NARONA ROAD, BALAJI METRO CHAMBERS, DONDAPARTHY, VISAKHAPATNAM - 530016, ANDHRA PRADESH, INDIA	B25341447
3	90252233	17/02/2005 *	135,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, 9-1-57 GNT ROAD, VISAKHAPATNAM - 530013, ANDHRA PRADESH, INDIA	-
4	90251379	13/12/2012 *	1,100,000,000.00	STATE BANK OF INDIA (LEAD BANK)	COMMERCIAL BRANCH, #43-29-54/8, NARONA ROAD, BALAJI METRO CHAMBERS, DONDAPARTHY, VISAKHAPATNAM - 530016, ANDHRA PRADESH, INDIA	B65763591

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans and advances from related parties	42.035	24.488
Other external commercial borrowings	0.000	121.096
SHORT TERM BORROWINGS
Term loans from others	182.204	51.530
Intercorporate borrowings	164.017	54.087
Total	388.256	251.201

PERFORMANCE AND FUTURE OUTLOOK

The company has successfully made the beginning in the manufacturing activity by establishing the facilities for manufacturing Rock Breakers and Components for Construction, Mining and Material Handling equipment at Visakhapatnam in ‘G’ Block on the land procured by the company from APIIC. Major investments in respect of infrastructure including plant and machinery have already been made and the project is under trial run. The management expects good business possibility with its manufactured products besides establishing its own brand image in the infrastructure and construction sector under the present scenario with thrust in the government policy on industrialization and infrastructure development in the country.

Year 2012-13 has been as challenging as the previous year which had the severe economic uncertainty in Europe and geopolitical upheaval in the Middle East, effect of which continued leading to adverse impact on demand and margin outlook for industrial products coupled with excessive volatile currency exchange rate of US Dollar and Euro vis-à-vis Indian Rupee recording more than 10% depreciation with many ups and downs during the entire year. The company being basically an importer had to face enormous challenge to maintain profitability.

In spite of all these adverse situations, the overall performance of the Company during the year was satisfactory especially considering the overall economic scenario in the country. The company has recorded an increase in the Profits before tax by 16.39% over the previous year while the revenue from operations recorded an increase by 4.93% at 1566.300 Millions from 1492.700 Millions in the previous year. The profits before Tax and after Tax are recorded at Rs.82.523 Millions and Rs.55.748 Millions respectively during the Year compared to Rs 70.900 Millions and Rs.47.091 Millions respectively in the previous Year.

The company has been successful in insulating its businesses by following a prudent operating discipline and the resultant increase in the profit could be possible mainly due to the improvement in inventory and cost control measures undertaken during the Year.

The company is continuing with its focus on expansion both in outfit network and in range and scope to provide widespread service to the sector by concluding new arrangements and tie ups for sales and distributions of new equipments and spares with high Brand value and opening new sales/ branch offices. The company added during the year four new branches at strategic location at Cochin, Barhi, Jodhpur and Raipur and a sales office at Kota taking the total Branch and Sales outfit network to 22 in the country.

CONTINGENT LIABILITIES [AS ON 31.03.2012]:

For counter guarantees (BG), given in respect of guarantees given by the Company's Bankers State Bank of India, Mid – Corporate Commercial Branch, Visakhapatnam for Rs.141.857 Millions (Previous year Rs.159.537 Millions and Indusind Bank Limited, Gajuwaka Branch, Visakhapatnam for Rs.0.100 Million (Previous year Rs.0.100 Million).

Foreign Letter of Credit (FLC) for Rs.79.711 Millions issued in favour of overseas suppliers by company’s Banker State Bank of India, Mid – Corporate Commercial Branch, Visakhapatnam (Previous year Rs.248.584 Millions and Indusind Bank Limited, Gajuwaka Branch, Visakhapatnam for Rs. NIL (Previous year Rs.95.621 Millions) and ICICI Bank Limited, Dwaraka Nagar Branch, Visakhapatnam for Rs.7.960 Millions (Previous year Rs. NIL).

Sales Tax Liability to the extent of Rs.0.246 Million, for demand raised by Sales Tax Authority and appeal for the same preferred by the company before Appropriate Authorities.

At the end of financial year the Company had outstanding Commercial Borrowings (External) in Foreign Currency of US$ 3.35 Millions (Previous Year US$3.35 Million), which has been recorded at the rates of exchange prevailing on the date of transactions, are converted at the rate of exchange prevailing on the date of Balance Sheet. Exchange Loss of Rs. 23.201 Millions on such conversion is accounted for in the Statement of Profit and Loss.

FIXED ASSETS:

· Land

Buildings

Office building

Factory building

Other building

Plant and equipment

Factory equipments

Other pollution reduction equipment

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Computer equipments

Other equipments

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 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. 62.20
UK Pound	1	Rs. 103.12
Euro	1	Rs. 84.96

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.