MIRA INFORM REPORT

Report Date :

05.12.2011

IDENTIFICATION DETAILS

Name :	REMI ELEKTROTECHNIK LIMITED [w.e.f November 2009]
Formerly Known As :	RAJENDRA ELECTRICAL INDUSTRIES LIMITED
Registered Office :	Plot No. 11, Cama Industrial Estate, Goregaon (East), Mumbai – 400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.04.1988
Com. Reg. No.:	11-47157
Capital Investment / Paid-up Capital :	Rs.48.650 Millions
CIN No.: [Company Identification No.]	L51900MH1988PLC047157
TAN No.: [Tax Deduction & Collection Account No.]	MUMR13939C
PAN No.: [Permanent Account No.]	AAACR2578P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Laboratory Stirrers and Magnetic Stirrers and Centrifuges.
No. of Employees :	50 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 2200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. R.P. Singh
Designation :	Accountant
Contact No.:	91-22-40589888

LOCATIONS

Registered Office :	Plot No. 11, Cama Industrial Estate, Goregaon (East), Mumbai-400063, Maharashtra, India
Tel. No.:	91-22-40589888/40589800
Mobile No.:	91-9820627422 (Mr. Ram Krishanan)
Fax No.:	91-22-40589890/26852335
E-Mail :	vsyer@remigroup.com remigroup@bom4.vsnl.net.in sales@remilabworld.com
Website :	http://www.remigroup.com
Area:	10000
Location :	Owned
Factory 1 :	Survey No. 65/1, Naaikpada, Vasai (East), District – Thane, Mumbai-401208, Maharashtra, India
Tel No.:	91-250-2452027/28
Fax No.:	91-250-2454493
Area:	60000
Location :	Owned
Factory 2 / Corporate Marketing Office :	Instruments Division, 3^rd Floor, 11, Cama Industrial Estate, Goregaon (East), Mumbai-400063, Maharashtra, India
Tel. No.:	91-22-40589888
Fax No.:	91-22-40589890/ 26850888
Branch Office :	Located At: · Ahmedabad · Bangalore · Chennai · Goa · New Delhi · Hyderabad · Indore · Kanpur · Kolkata · Kochi · Nagpur

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Vishwambhar C. Saraf
Designation :	Chairman and Managing Director
Name :	Mr. Rajendra C. Saraf
Designation :	Executive Director
Name :	Mr. Sunil Saraf
Designation :	Executive Director
Name :	Mr. Sandeep Shriya
Designation :	Executive Director
Name :	Mr. Shyam Jatia
Designation :	Executive Director
Name :	Mr. Ashish Kanodia
Designation :	Executive Director
Name :	Mr. Mahendra Chirawawala
Designation :	Executive Director
Name :	Mr. Harkishan Zaveri
Designation :	Executive Director
Name :	Mr. Ritvik Saraf
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. R.P. Singh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Category	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,346,730	27.68
Bodies Corporate	1,661,234	34.15
Any Others (Specify)	463,296	9.52
Trusts	463,296	9.52
Sub Total	3,471,260	71.35
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3,471,260	71.35
(B) Public Shareholding
(1) Institutions	--	--
(2) Non-Institutions
Bodies Corporate	1,382,200	28.41
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	11,540	0.24
Sub Total	1,393,740	28.65
Total Public shareholding (B)	1,393,740	28.65
Total (A)+(B)	4,865,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	4,865,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Laboratory Stirrers and Magnetic Stirrers and Centrifuges.

Products :

Product Description	Item Code No. (ITC Code)
Electric Motors	850110.02
Laboratory Equipments	841899

· H.P. Motors

· Laboratory Stirrers

· BOD Incubators

· Environmental Test Chambers

· Rotary Shakers

· Blood Bank Refrigerators

· High Speed Centrifuges

· Laboratory and Blood Banking instruments

· A.C Fans and D C Fans, Solar Fans

· Electric Motors and Geared Motors

· Stainless Steel Welded / Seamless Pipes and Tubes

· Industrial Agitators and Mixers

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Electrical Motors	Nos.	83000	78894
Laboratory Instruments	Nos.	--	32571

GENERAL INFORMATION

Customers :

· All India Institute of Medical Science

Apollo Hospital

Asian Heart Institute

Asian Paints

Cadila Pharmaceuticals Limited

Care Hospitals

CDRI

CFTRI

CIPLA

CLINIRX

Coca-Cola

Colgate Palmolive Company

Columbia Asia

Dabour

University of Delhi

DOW

Ranbaxy Laboratories Limited

Tata Tea

World Health Organization

Seven Hills Hospital

Reliance Life Sciences

No. of Employees :

50 [Approximately]

Bankers :

· State Bank of India

Small Industries Development Bank of India

ICICI Bank

Facilities :

Secured Loan	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
From State Bank of India
Working Capital facilities (Secured by equitable mortgage of the Company’s immovable property situated at Andheri Mumbai , second charge over Fixed Assets situated at Vasai, Hypothecation of Stocks of Raw materials, Stock in Process, Finished Goods, Stores and Spares and Book Debts and all other Current Assets, and further guaranteed by two of the Directors)	99.985	70.339
Kotak Mahindra Prime Limited (Secured by hypothecation of the vehicle against which the loan is availed, Due within One year Rs.0.161 million (PY. Rs. Nil )	0.385	0.000
Term Loan from SIDBI (Secured by equitable mortgage of the Company’s immovable property at Vasai and hypothecation of Plant and Machinery, Die and Tools etc. second charge over Current Assets of the company and further guaranteed by two of the Directors, Due within One year Rs.9.136 millions PY.Rs.9.136 millions)	13.308	22.501
Loan from ICICI Bank (secured by hypothecation of the vehicle against which the loan is availed., Due within One year Rs. Nil (PY.Rs.0.244 million)	0.000	0.245
Total	113.678	93.085
Unsecured Loan	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Sales Tax Deferred Liability	2.968	3.000
From Corporate Bodies	120.979	28.970
Total	123.947	31.970

Banking Relations :	--
Auditors :
Name :	Sundarlal Desai and Kanodia
Address :	Chartered Accountants
Tel. No.:	903, Arcadia, 195, N.C.P.A. Road, Mumbai- 400 021, Maharashtra, India
Associates:	· Bajrang Fianance Limited · Remi Process Plant and Machinery Limited · Remi Metal Gujarat Limited · Rajendra Finance Private Limited · Remi Finance and Investment Private Limited · Remi Securities Limited · Remi Edelstahl Tubulars Limited · Remi International Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4865000	Equity Shares	Rs.10/- each	Rs.48.650 Millions

NOTE:

(5,70,000 Shares allotted as fully paid up to the shareholders of amalgamating companies pursuant to the scheme of amalgamation without payments being received in cash and 23,32,500 equity shares issued a bonus share by capitalization of General Reserve.)

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		48.650	48.650	48.650
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		524.742	110.950	84.556
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		573.392	159.600	133.206
LOAN FUNDS
1] Secured Loans		113.678	93.085	122.793
2] Unsecured Loans		123.947	31.970	19.179
TOTAL BORROWING		237.625	125.055	141.972
DEFERRED TAX LIABILITIES		11.167	9.301	6.599
TOTAL		822.184	293.956	281.777
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		153.844	151.351	130.831
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.448	0.447	1.426
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	602.405	88.285	61.656
	Sundry Debtors	182.976	148.746	138.000
	Cash & Bank Balances	2.227	1.161	1.119
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.016	30.814	11.221
Total Current Assets		797.624	269.006	211.996
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	106.116	103.466	38.802
	Other Current Liabilities	16.510	17.264	16.307
	Provisions	7.106	6.118	7.367
Total Current Liabilities		129.732	126.848	62.476
Net Current Assets		667.892	142.158	149.520
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		822.184	293.956	281.777

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	695.241	548.462	480.628
		Other Income	2.345	11.181	4.554
		TOTAL (A)	697.586	559.643	485.182
Less	EXPENSES
		Consumption of Raw Materials	421.534	329.423	272.832
		Purchase of Traded Goods	7.717	4.222	5.594
		Manufacturing Expenses	74.014	64.039	46.633
		Employees' Remuneration and Benefits	61.019	50.521	47.754
		Administrative, Selling and Other Expenses	70.331	57.401	51.012
		Increase /(Decrease) in Stocks	(3.475)	(9.096)	19.676
		TOTAL (B)	631.140	496.510	443.501
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		66.446	63.133	41.681
Less	FINANCIAL EXPENSES (D)		13.881	12.534	16.369
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.565	50.599	25.312
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.742	9.023	8.442
	PROFIT BEFORE TAX (E-F) (G)		42.823	41.576	16.870
Less	TAX (H)		14.352	15.028	5.916
	PROFIT AFTER TAX (G-H) (I)		28.471	26.548	10.954
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		51.175	29.627	23.673
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	5.000	5.000
	BALANCE CARRIED TO THE B/S		69.646	51.175	29.627
	Earnings Per Share (Rs.)		5.85	5.44	2.35

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	148.770	141.900
Total Expenditure	133.680	130.230
PBIDT (Excl OI)	15.090	11.670
Other Income	0.400	0.120
Operating Profit	15.490	11.790
Interest	4.290	2.340
Exceptional Items	0.000	0.000
PBDT	11.200	9.450
Depreciation	2.320	2.360
Profit Before Tax	8.880	7.090
Tax	2.880	2.400
Provisions and contingencies	0.000	0.000
Profit After Tax	6.000	4.710
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	6.000	4.710

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.08	4.74	2.25
Net Profit Margin (PBT/Sales)	(%)	6.16	7.58	3.51
Return on Total Assets (PBT/Total Assets}	(%)	4.50	9.89	12.66
Return on Investment (ROI) (PBT/Networth)		0.07	0.26	0.13
Debt Equity Ratio (Total Liability/Networth)		0.64	1.58	1.53
Current Ratio (Current Asset/Current Liability)		6.15	2.12	3.39

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The Sales of both the divisions of the Company, (1) Instrument Division and (2) Motor Division, increased, whereby the total sales of the Company grew from Rs.548.462 Millions to Rs.695.241 Millions , having growth of more than 25% from the previous year due to major contribution of the Laboratory Division, Marketing and product development efforts. Net profit after tax increased from Rs.26.548 Millions to Rs.28.471 Millions. However, the operating profit has gone up from Rs.30.394 Millions to Rs.40.478 Millions, a growth of more that 33%. But the Other Income has come down from Rs.11.181 Millions (which includes extraordinary items of Rs.9.335 Millions) to Rs.2.345 Millions, having a growth of Rs.0.498 Million without any extraordinary items.

Thus the working of the Company for the year is having an overall growth, as compared to the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS:

Instrument Division products are for medical, hospital, health organizations, all types of testing laboratories and research organizations. The demand for these traditional products has now shifted to high-tech global quality and standards.

The Company is continuously developing new products and upgrading the existing ones to global quality and standard, to meet ever-increasing demand presently met by import. The Company has been growing with this philosophy. We expect growth in demand of the products to continue.

Motor Division’s expansion programme of increasing range and production of gear motors and electric motors, which started in the previous year, will be completed by December 2011, with installation of new machinery, equipment and wider range of these motors. Improved sales are expected to be achieved during the year.

FIXED ASSETS:

· Lease Hold Land

· Lease Hold Land

· Staff Quarters

· Factory Building (A)

· Factory Building (V)

· Plant and Machinery

· Moulds, and Dies

· Electric Installation

· Office Equipments

· Furniture and Fixture

· Air Conditioner

· Motor Car

· Computer

· Computer Software

· Goodwill A/c

· Fire extinguisher

· Testing Equipments

· Borewell

WEBSITE DETAILS:

Company Profile

Subject founded in 1960, by the late visionary Mr. C. K. Saraf, with a small factory, is today Turning, Evolving, Growing. From a humble beginning, subject has diversified into multi-product manufacturing divisions to become one of India’s most trusted brands. This year, yet another chapter are written in REMI’s history, as we complete 50 glorious years. Over these 50 epic years, they have dreamt, innovated, succeeded and are on the way to become a world class enterprise.

Headquartered in Mumbai, subject today, is a global Laboratory and Blood Banking Instruments manufacturer and exporter. The world class quality products and its talented team of professionals make it a premier player in the country, with a presence in 50 countries across the globe.

At subject, they pursue research with a pioneer’s zeal by threading new paths and attempting breakthrough products and processes. No wonder, we are pioneers in introducing host of new products in Indian market.

Subject is the industry leader in manufacturing Laboratory/ Magnetic Stirrers and Centrifuges and Blood Bank Refrigerators / Freezers catering to over 50% of the total Indian demand. The manufacturing facilities adhere to WHO-GMP guidelines, with ISO 9001-2008 certification for design, manufacturing and supply of Laboratory and Blood Banking Instruments and ISO-13485:2003 for medical devices. All the products are CE marked.

The goal is to be a top global player. In pursuance of their objective, they are committed to maintain world-class quality standards, efficient delivery schedules, cost-effective rates and exceptional after sales service.

MILESTONES

1960	A team of 10, produced motorized Laboratory Centrifuges and Stirrers in a small factory
1962	Started manufacturing Industrial Mixers, Agitators and Oil Field equipments
1969	First to manufacture fans for Car, Coach and Bus Fans in India.
1970	- Foray into Household segment with Domestic Mixies (Blender and Grinder)
	- Introduced Geared Motors in Indian Market in technical collaboration with German Giant VEB KOMBINAT
	ELECTROMASCHINENBAU Started to manufacture Three phase and Single phase electric motors
	- Started manufacturing welded Stainless steel pipes In technical collaboration with Kobe Steel of Japan
1980-85	- REMI Sales and Engineering Limited, became a marketing hub for all the REMI GROUP products
	- Established 12 branches across India
1983-85	REMI begins to manufacture equipments and instruments used in Blood Banks and Hospitals
1992	Tarapur SS pipe plant operational with an area of 50,000 sq. mtrs.
1994	Fan Manufacturing plant set up at Mahad
2003	Appointed as National Distributors by Fenwal, USA for their ancillary products of Blood Banks.
2004	Lab Instruments Division awarded ISO-9001
2005	OE manufacturer and supplier to foreign brands for laboratory instruments.
2007	Major expansion with state-of-the-art manufacturing facility of instruments division to Vasai, (outskirts of Mumbai).
2010	Corporate offices of all REMI Group divisions under  one roof
2011	REMI launches PLUS Range of Laboratory 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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.35
UK Pound	1	Rs.80.51
Euro	1	Rs.69.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
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	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.