1. Summary Information

		Country	India
Company Name	REMI EDELSTAHL TURBULARS LIMITED	Principal Name 1	Mr. Ritvik V. Saraf
Status	Moderate	Principal Name 2	Mr. Vishwambhar C. Saraf
		Registration #	11-014746
Street Address	11, Cama Industrial Estate, Walbhat Lane, Goregaon (East), Mumbai-400063, Maharashtra, India
Established Date	19.08.1970	SIC Code	--
Telephone#	91-22-40589800	Business Style 1	Manufacturer
Fax #	91-22-26852335	Business Style 2	--
Homepage	--	Product Name 1	S.S. Welded Pipe
# of employees	--	Product Name 2	S.S. Seamless Pipe
Paid up capital	Rs. 95,824,000/-	Product Name 3	Power Generation
Shareholders	Individuals-61.36% Companies-38.40% FIIs, NRIs, OCBs-0.13% Mutual Funds, Banks, FIs -0.11%	Banking	State Bank Of India
Public Limited Corp.	Yes	Business Period	40 Years
IPO	Yes	International Ins.	--
Public Enterprise	Yes	Rating	B (28)
Related Company
Relation - Associates	Country-India	Company Name	Rajendra Electrical Industries Limited
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	262955000	Current Liabilities	140844000
Inventories	299410000	Long-term Liabilities	360679000
Fixed Assets	369301000	Other Liabilities	67688000
Deferred Assets	0	Total Liabilities	569211000
Invest& other Assets	63715000	Retained Earnings	330346000
		Net Worth	426170000
Total Assets	995381000	Total Liab. & Equity	995381000
Total Assets (Previous Year)	1047777000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	914582000	Net Profit	8028000
Sales(Previous yr)	1,536,851,405	Net Profit(Prev.yr)	(26,697,239)

MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	REMI EDELSTAHL TURBULARS LIMITED
Formerly Known As :	RAJENDRA MECHANICAL INDUSTRIES LIMITED
Registered Office :	11, Cama Industrial Estate, Walbhat Lane, Goregaon (East), Mumbai-400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.08.1970
Com. Reg. No.:	11-014746
CIN No.: [Company Identification No.]	L28920MH1970PLC014746
TAN No.: [Tax Deduction & Collection Account No.]	MUMR13940D
PAN No.: [Permanent Account No.]	AAACR0408G
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Stainless Steel Welded and Seamless Pipes

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1704680
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered / Corporate Office :	11, Cama Industrial Estate, Walbhat Lane, Goregaon (East), Mumbai-400063, Maharashtra, India
Tel. No.:	91-22-40589800
Fax No.:	91-22-26852335
E-Mail :	vsiyer@remigroup.com remigrup@bom4.vsnl.net.in
Factory :	Plot No. N-211/1, M.I.D.C., Tarapur, Maharashtra

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Ritvik V. Saraf
Designation :	Executive Director
Name :	Mr. Mahabir Prasad Jatia
Designation :	Director
Name :	Mr. Rajendra C. Saraf
Designation :	Director
Name :	Mr. Kamal Kumar Dujodwala
Designation :	Director
Name :	Mr. Rishabh V. Saraf
Designation :	Managing Director
Name :	Mr. Shankar Lal Jain
Designation :	Director
Name :	Mr. Gopikishan Biyani
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Vishwambhar C. Saraf
Designation :	Chairman

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Category of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2419330	25.25
Bodies Corporate	1407176	14.69
Any Others (Specify)	1461748	15.25
Trusts	1461748	15.25
Sub Total	5288254	55.19
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5288254	55.19
(B) Public Shareholding
(1) Institutions
Mutual Funds/UTI	9000	0.09
Financial Institutions/ Banks	1000	0.01
Sub Total
(2) Non-Institutions
Bodies Corporate	2092158	21.83
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1577993	16.47
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	434364	4.53
Any Others (Specify)	179631	1.87
Clearing Members	4181	0.04
Non Resident Indians	13106	0.14
Overseas Corporate Bodies	162344	1.39
Sub Total	4284146	44.71
Total Public shareholding (B)	4294146	44.81
Total (A)+(B)	9582400	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
Total (A)+(B)+(C)	9582400	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stainless Steel Welded and Seamless Pipes

Products :

Product Description	Item Code. (ITC Code)
S.S. Welded Pipe	730640.00
S.S. Seamless Pipe	730410.01
Power Generation	--

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Installed Capacity	Actual Production
Stainless steel pipes and tubes	7445	3518.169
Wind power	2.25 MW	3355393

Note:

1. The company manufactures wide range of small and big diameter stainless steel welded and seamless pipes and tubes and installed capacity in tons is based on standard size of diameter.
2. Installed capacity is as certified by the management and relied by auditors being a technical matter.

GENERAL INFORMATION

Bankers :

State Bank Of India

Facilities :

Particulars	AS ON 31.03.2010 (Rs. In millions)	As at 31.03.2009 ( Rupees in Millions)
Secured loan
Loan From SBI on Cash Credit Accounts	147.245	177.293
Buyers Credit from Bank	16.867	92.822
Term Loan from SBI	90.020	71.647
Loan from other Banks	0.523	1.321
Loan from LIC	0.000	8.336
TOTAL	254.655	351.419

UNSECURED LOAN	AS ON 31.03.2010 (Rs. In millions)	As at 31.03.2009 ( Rupees in Millions)
Interest – free Loans under Sales Tax Deferral Scheme (Payable within one year Rs.7.128 millions, Previous Year Rs.7.836 millions)	106.024	111.048
TOTAL	106.024	111.048

Banking Relations :	--
Auditors :
Name :	M/s. Sundarlal, Desai and Kanodia Chartered Accountants
Address :	903, Arcadia, 195, N.C.P.A. Road, Mumbai-400021
Associates/Subsidiaries :	Remi Process Plant and Machinery Limited Rajendra Electrical Industries Limited Remi Metals Gujarat Limited Remi Finance and Investments Private Limited Remi Sales and Engineering Limited Remi Anupam Mixie Limited Bajrang Finance Limited Remi Securities Limited Rajendra Finance Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- Each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9582400	Equity Share	Rs.10/- Each	Rs. 95.824 Millions

Of the above 49, 39,700 equity share of Rs. 10/- each were issued as fully paid bonus shares by capitalization of reserves

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		95.824	95.824	47.912
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		330.346	323.316	405.648
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		426.170	419.140	453.560
LOAN FUNDS
1] Secured Loans		254.655	351.419	566.744
2] Unsecured Loans		106.024	111.048	101.090
TOTAL BORROWING		360.679	462.467	667.834
DEFERRED TAX LIABILITIES		67.688	69.420	79.218
TOTAL		854.537	951.027	1200.612
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		369.301	375.241	380.899
Capital work-in-progress		63.238	0.758	8.617
INVESTMENT		0.477	7.470	23.106
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	299.410	368.320	630.398
	Sundry Debtors	192.992	207.403	299.974
	Cash & Bank Balances	14.673	27.882	26.629
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	55.290	60.703	74.417
Total Current Assets		562.365	664.308	1031.418
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.851	56.952	226.823
	Other Liabilities	28.404	32.550
	Provisions	3.589	7.248	16.605
Total Current Liabilities		140.844	96.750	243.428
Net Current Assets		421.521	567.558	787.990
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		854.537	951.027	1200.612

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	914.582	1536.851	1809.554
		Other Income	25.677	15.488	33.355
		TOTAL (A)	940.259	1552.340	1842.909
Less	EXPENSES
		Consumption of Raw Material	579.495	1078.442	1416.889
		Purchase for Resale	26.501	3.354	20.382
		Manufacturing Expenses	61.516	79.975	87.679
		Employees Remuneration and benefits	55.732	61.089	51.668
		Administrative Expenses	52.635	98.295	113.295
		Increase/(Decrease) in Finished Goods	107.918	184.768	(68.083)
		TOTAL (B)	883.797	1505.923	1621.830
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		56.462	46.417	221.079
Less	FINANCIAL EXPENSES (D)		27.733	56.636	58.358
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.729	(10.219)	162.721
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.745	25.856	23.860
	PROFIT BEFORE TAX (E-F) (G)		2.984	(36.075)	138.861
Less	TAX (H)		(5.044)	(9.378)	46.726
	PROFIT AFTER TAX (G-H) (I)		8.028	(26.697)	92.135
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		121.097	157.794	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	10.000	NA
	BALANCE CARRIED TO THE B/S		119.125	121.097	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	121.701	407.046	460.795
	TOTAL EARNINGS		121.701	407.046	460.795
	IMPORTS
		Raw Materials	309.136	607.564	1030.341
		Stores & Spares	0.000	0.501	0.000
		Fixed Assets	52.449	8.171	4.238
	TOTAL IMPORTS		361.585	616.236	1034.579
	Earnings Per Share (Rs.)		0.84	(2.79)	9.62

QUARTERLY RESULTS

PARTICULARS	30.06.2010 1^st Quarter	30.09.2010 2^nd Quarter
Net Sales	170.700	266.010
Total Expenditure	154.620	250.110
PBIDT (Excl OI)	16.080	15.900
Other Income	0.390	1.160
Operating Profit	16.470	17.060
Interest	8.330	9.310
Exceptional Items	0	0
PBDT	8.140	7.750
Depreciation	6.510	6.800
Profit Before Tax	1.630	0.950
Tax	0.500	-0.120
Provisions and contingencies	0	0
Profit After Tax	1.130	1.070

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.85	1.76	4.99
Net Profit Margin (PBT/Sales)	(%)	0.32	2.35	7.67
Return on Total Assets (PBT/Total Assets}	(%)	0.32	3.47	9.83
Return on Investment (ROI) (PBT/Networth)		0.00	0.09	0.30
Debt Equity Ratio (Total Liability/Networth)		1.17	1.33	2.00
Current Ratio (Current Asset/Current Liability)		3.99	6.87	4.24

LOCAL AGENCY FURTHER INFORMATION

Operations:

The Company has changed its name to Remi Edelstahl Tubulars Limited. The word Edelstahl means Stainless Steel in German language. With this change the name itself reflects the products of the Company.

The year 2009-10 was a testing and challenging year for the Company. During the year, the turnover of the Company witnessed a sharp fall of 41% to Rs.97.64 Crores due to 23% lower volume of sales coupled with fall in prices. In spite of this, the Company has posted EBIDTA of Rs.564.63 a growth of 22% over the previous

year, which helped the Company to break even in spite of recessionary business environment.

The Management still believes that the fundamentals and the prospects of the Company are positive. The Company has developed value added products e.g. Duplex Stainless Steel Grades and has also successfully executed trial orders during the year. Such product developments would help in improving utilization & profitability of the Company. The expansion programme initiated in the previous year is in the final stage of implementation and successful trial runs have been conducted. Commercial production benefits would commence in the coming years. The Company is also focusing on the growth in the power sector to optimize utilization of its capacity

MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENT:

The stainless steel industry can be classified into the organized and unorganized sector. The organized sector, in which the Company operates, has witnessed a sharp growth in capacity over the recent years. The growth in demand has traditionally been witnessed in the oil and gas(refining) sectors. Now with the government aiming to provide electricity to all, the power sector (particularly thermal based power projects) has emerged as a major sector where the Company's products are used.

OPPORTUNITIES AND THREATS:

The high rate of growth in the Indian economy, particularly the oil, gas, power, fertilizer sectors, offer growth for the requirement of the Company's product range. The volatility in the non ferrous commodities (e.g. Nickel / Moly) can effect the usage and pricing patterns of the user industry. The threat of dumping of secondary quality products from foreign manufacturers can have an adverse effect on the industry.

OUTLOOK:

The Company has geared itself to meet the demand from the above mentioned sectors by getting major approvals within India.

The Company is also looking at getting approvals overseas to further enhance the value added component of its business. The progress of India's approval within the Nuclear community will also result in huge demand of the Company's products in the coming years.

 
Contingent Liabilities not provided for,
· Bank Guarantees Given by Bankers on Behalf of the Company 
· Guarantee given by the Company to Bankers on behalf of Associates Company 
· Bills Discounted
· Claim of Collector
· Sales Tax (Deputed in Appeal)
· Show Cause Notice in Respect of Central Excise
· Central Excise
· Subletting Charges
· In Respect of Custom Duty
· Income Tax matters
 

Fixed Assets

• Leasehold Land-Wind Mill
• Land (Leasehold)
• Factory Building
• Plant and Machinery
• Plant and Machinery-Wind Mill
• Dies and Moulds
• Electrical Installation
• Office Equipments
• Furniture and Fixtures
• Air Conditioner
• Computers
• Furniture and fixtures
• Vehicles
• Office Premises

WEBSITE DETAILS

Company Profile:

Remi Edelstahl Tubulars Limited, formerly known as Rajendra Mechanical Industries Limited is the largest manufacturer of Stainless Steel welded and seamless pipes/ tubes and the only organization in India in this field to have ISO-9002 Certification. REMI's manufacturing plant is equipped with the latest equipment, technology and expertise to deliver quality products to the customers. REMI products have been used extensively in critical process industries such as refineries, petrochemicals, paper and pulp, fertilizers, pharmaceuticals, nuclear plants, etc.

Their products have been working satisfactorily for years in the world of Refineries, Petrochemicals, Fertilizers, Pharmaceuticals, Paper and Pulp Industries, critical applications of Nuclear Plants. Repeat orders from most of the clients are a testimony to the confidence generated with their valued customers. Meeting customer requirement and customer satisfaction is the main goal for “REMI”. Inspection department is obviously no exception to this.

They are:

• Pioneer in country in the field of S.S. Welded and Seamless Pipes & Tubes.
• Started operation in 1970 under co-operation agreement with M/s KOBE STEEL –JAPAN.
• Spread over 14 acres of land with cover area of .25 million Square feet at, Tarapur, an industrial Town Ship in Maharashtra   (160 Kms from Mumbai).
• Approved from all leading consultants in India.
• Catering to all process industries of India and Abroad.
• Equipped with modern production facilities.
• Latest generation Testing Equipments and Laboratory.
• Managed by a Team of Professionals and Technocrats.
• ISO 9001-2000 Company with Complete Range of Products.
• I B R Approval.
• AD 2000-Merkblatt WO / TRD 100 Directive 97/23/EC from TUV.
• PED Approval for Export to Europe for high Pressure Application.
• EIL Approval for ASTM A-358 Class-I Pipes.

They have:

• Bright Annealing Facilities for Heat Exchanger Tubes.
• U Bending Facilities for Heat Exchanger Tube
• Cold Pilgering Facility up to 114.30 mm OD.
• Widest Range (6mm OD TO 1500 mm OD).
• Heat Treatment up to 24 “NB.
• Cold Pilgering Facilities up to 4 “ NB
• U-Bending.
• Capacity 7500 MT. P.a.
• 2 complete Stainless Steel/Titanium condenser Tube mills with online bright annealing.
• Pneumatic Air testing Facilities.
• Helium Leak Test.

First in:

• India to Manufacture S.S.Welded Pipes of ASTM A-358 CLASS---I, With Solution Annealing.
• Stabilizing Heart Treatment of TP-321 GRADE Heat Exchanger Tubing/Pipes.
• First to Get ISO 9001-2000 Approval.
• First to Get PED Approval.

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. 45.32
UK Pound	1	Rs. 70.54
Euro	1	Rs. 58.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.