MIRA INFORM REPORT

Report Date :

18.06.2011

IDENTIFICATION DETAILS

Name :	ELECTROMECH MATERIALS HANDLING SYSTEMS (INDIA) PRIVATE LIMITED

Registered Office :	Plot No. 1, Gate No. 316, At P Kasar Amboli, Tal Mulshi, District Pune – 412111, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	08.05.1996

Com. Reg. No.:	099346

Capital Investment / Paid-up Capital :	Rs.50.000 Millions

CIN No.: [Company Identification No.]	U31109MH1996PTC099346

IEC No.:	3104014311

TAN No.: [Tax Deduction & Collection Account No.]	PNEE01757A

PAN No.: [Permanent Account No.]	AABCE2527J

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing of Material Handling Equipments

No. of Employees :	500 Approximately

RATING & COMMENTS

MIRA’s Rating :

A (65)

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 :	USD 1361580

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company having fine track. Trade relations are fair. Business is active General financial position is satisfactory. Payments are reported as usually correct and as per commitments. The company can be considered good for normal 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.

INFORMATION PARTED BY

Name :	Mr. Nitin
Designation :	Accountant
Date :	17.06.2011

LOCATIONS

Registered Office / Factory / Head Office :	Gate No. 316, Plot No. IA/IB Kasar Amboli, Industrial Zone, Taluka Mulshi, Pune – 411004, Maharashtra, India
Tel. No.:	91-20-22922222 / 66542222
Fax No.:	91-20-22923300 / 66542222
E-Mail :	Tushar@emech.in cranes@emech.in nitin@emech.in
Website :	www.emech.in
Area :	10000 Sq. Fts.
Location :	Owned

Factory 2 :	16/3, F – 2 Block, M.I.D.C. Pimpari, Pune – 411018
Tel. No.:	91-20-27473666
Fax No.:	91-20-27472278

Branches :	Ahmedabad Office 254, Sayam Mall, Satellite, Ahmedabad, Gujarat, India Bangalore Office No. 26-27, Level 9, Raheja Towers, M.G. Road, Bangalore - 560 001, Karnataka, India Chennai Office No. 11, 1st floor, Gemini Parsn Manere, 602, Anna Salai, Mount Road, Chennai - 600 006, India Tele / fax 91-44-4214 4505 Delhi Office No. 1513, 15th floor, Galleria, DLF Phase - IV, Gurgaon, India Mumbai Office 802, Fairlink Centre, Off Link Road, Andheri (W), Mumbai - 400 053 Tel 91-22-4097 5252 Hyderabad Office: Block No. 76, Gruhalaxmi Colony, Kakaguda, Secunderabad – 500015, Andhra Pradesh, India Jamshedpur Office: Bungalow No. 19, Candystuff Lane, Ashiyana Gardens, Sonari, Jamshedpur – 831011, India Kolkata 16, Jogendra Gardens, Ground Floor, Bosepukar, Kolkata 700 078, West Bengal, India Nagpur 49, New Kailash Nagar, Samta Colony, Nagpur 440 027, Maharashtra, India Nasik 10, D. J. Housing society, Dsouza Colony, Opp. Model Colony, College Road, Nasik, Maharashtra, India

Overseas Office:	ElectroMech FZE, LOB 19 1002, P.O.Box 263019, Jebel Ali Free Zone, Dubai - UAE Tel : 971-4-8857466 Fax : 971-4-8857655 E-mail :cranes@emech.ae

DIRECTORS

AS ON 16.07.2010

Name :	Mr. Tushar Vinayak Mehendale
Designation :	Chairman
Address :	Flat No. 2, Nishigandha Apt., Prabhat Road, CTT CTS 105/6FP No. 64/6, Pune – 411004, Maharashtra, India
Date of Birth/Age :	02.11.1975
Qualification :	B.E., M.S.
Date of Appointment :	09.04.1996

Name :	Ms. Surekha Vinayak Mehendale
Designation :	Director
Address :	Flat No. 2, Nishigandha Apt., Prabhat Road, CTT CTS 105/6FP No. 64/6, Pune – 411004, Maharashtra, India
Date of Appointment :	03.01.2000

Name :	Ms. Awanti Tushar Mehendale
Designation :	Director
Address :	Flat No. 2, Nishigandha Apt., Prabhat Road, CTT CTS 105/6FP No. 64/6, Pune – 411004, Maharashtra, India
Date of Birth/Age :	12.09.1976
Date of Appointment :	01.01.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 16.07.2010

Names of Shareholders	No. of Shares
Mr. Tushar Vinayak Mehendale	4234890
Ms. Surekha Vinayak Mehendale	247666
Ms. Awanti Tushar Mehendale	233000
Mr. Kedar Vinayak Mehendale	33555
Mr. Tushar Vinayak Mehendale	85254
Mr. Tushar Vinayak Mehendale	3030
Mr. Tushar Vinayak Mehendale	4326
Mr. Kedar Vinayak Mehendale	64005
Mr. Kedar Vinayak Mehendale	3167
Mr. Kedar Vinayak Mehendale	2773
Ms. Surekha Vinayak Mehendale	64042
Ms. Surekha Vinayak Mehendale	3158
Ms. Surekha Vinayak Mehendale	21134
Total	5000000

EQUITY SHARES BREAK UP

AS ON 16.07.2010

Category	Percentage

Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Material Handling Equipments

Products :	Material Handling Equipments

Brand Names :	EOT Cranes

Terms :
Selling :	LC/ Credit Up to ( 90 Days )

Purchasing :	LC/ Credit Up to ( 30 Days )

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Actual Production
Cranes	Nos.	519
Hoists	Nos.	80
Spares	Nos.	28315

GENERAL INFORMATION

Customers :

Industries

No. of Employees :

500 Approximately

Bankers :

State Bank of India, Industrial Finance Branch, 2^nd Floor, Tara Chambers, Near Marri Mandir, Pune Mumbai Highway, Wekdewadi, Pune – 411003, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Working Capital Facility From SBI secured by charge on current assets and fixed assets and against personal guarantee of promoter directors	437.535	383.835
Term Loan From SBI secured by hypothecation of plant and machinery, Factory building and against personal guarantee of promoter directors	115.180	100.576
Other vehicle loan Secured by hypothecation of vehicles	1.603	2.537

Total	593.318	486.948

Unsecured Loans
Deposit from Members	21.223	10.912

Total	21.223	10.912


Banking Relations :	--

Auditors :
Name :	Bhushans Bapat Chartered Accountant
Address :	120, Shukrawar Peth, Pune – 411002, Maharashtra, India
Tel. No.:	91-20-24459390

Associates / Subsidiaries :	Electromech Overseas Cranedge India Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

5000000	Equity Shares	Rs.10/- Each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

5000000	Equity Shares	Rs.10/- Each	Rs.50.000 Millions

Of the above:

4936828 shares are allotted as fully paid up by way of bonus shares.

During the year 800000 no. of preferences shares were converted into 3172 equity shares @ premium of Rs. 2522 /- per share.

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		50.000	50.000	8.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		290.395	202.301	152.177
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		340.395	252.301	160.777
LOAN FUNDS
1] Secured Loans		593.318	486.949	231.094
2] Unsecured Loans		21.223	10.912	1.540
TOTAL BORROWING		614.541	497.861	232.634
DEFERRED TAX LIABILITIES		14.461	9.179	4.646

TOTAL		969.397	759.341	398.057

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		371.034	255.722	93.839
Capital work-in-progress		5.337	7.045	101.180

INVESTMENT		16.581	0.406	0.406
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	358.175	323.436	181.278
	Sundry Debtors	543.260	332.316	225.992
	Cash & Bank Balances	40.400	18.544	21.876
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	171.174	120.468	102.764
Total Current Assets		1113.009	794.764	531.910
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	210.311	79.968	93.479
	Current Liabilities	268.259	218.727	235.915
	Provisions	58.076	0.000	0.000
Total Current Liabilities		536.646	298.695	329.394
Net Current Assets		576.363	496.069	202.516

MISCELLANEOUS EXPENSES		0.082	0.099	0.116

TOTAL		969.397	759.341	398.057

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Other Income	1393.924	1376.474	717.900
		TOTAL (A)	1393.924	1376.474	717.900

Less	EXPENSES
		Cost of Materials	811.281	864.576
		Manufacturing Expenses	97.655	99.701
		Selling and Distribution Expenses	87.858	63.578	596.704
		Office Expenses	109.175	77.785
		Administrative Expenses	60.624	37.552
		Miscellaneous Expenses written off	0.016	0.016
		TOTAL (B)	1166.609	1143.208	596.704

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		227.315	233.266	121.196

Less	FINANCIAL EXPENSES (D)		61.898	57.579	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		165.417	175.687	121.196

Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.846	6.516	3.304

	PROFIT BEFORE TAX (E-F) (G)		155.571	169.171	117.892

Less	TAX (H)		52.901	60.098	43.113

	PROFIT AFTER TAX (G-H) (I)		102.670	109.073	74.779

	Earnings Per Share (Rs.)		20.53	21.82	14.81

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.36	8.03	10.42

Net Profit Margin (PBT/Sales)	(%)	11.16	12.29	16.42

Return on Total Assets (PBT/Total Assets}	(%)	10.48	16.10	18.84

Return on Investment (ROI) (PBT/Networth)		0.45	0.67	0.73

Debt Equity Ratio (Total Liability/Networth)		3.42	3.16	3.50

Current Ratio (Current Asset/Current Liability)		2.07	2.66	1.61

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Particulars

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

31.03.2008

Rs. in Millions

Sundry creditors

210.311

79.968

93.479

NOTE:

During the year, the Board had with the consent of Preferences Shareholders converted Preferences Shares into Equity Shares. Further, Members will appreciate that the Board had declared a very liberal bonus issue for the Equity Shareholders of the Company. The Equity Shares Capital after Bonus Shares has increased to Rs. 50.000 Millions.

FIXED ASSETS

Electrical Installation
Factory Building
Land
Building
Furniture and Fixture
Plant and Machinery
Office Equipment
Vehicle
Computer

NOTE:

The Registered Address of the company has been shifted from Pralhad Arcade, Plot No. 73/2/1, Bhakti Nagar, Off Law College Road, Erndawana, Pune – 411004, Maharashtra, India to the present address i.e. Gate No. 316, Plot No. IA/IB Kasar Amboli, Industrial Zone, Taluka Mulshi, Pune – 411004, Maharashtra, India with effect from 01.07.2009.

FORM 8:

Corporate identity number of the company	U31109MH1996PTC099346
Name of the company	ELECTROMECH MATERIALS HANDLING SYSTEMS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1, Gate No. 316, At P Kasar Amboli, Tal Mulshi, District Pune – 412111, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	State Bank of India, Industrial Finance Branch, 2^nd Floor, Tara Chambers, Near Marri Mandir, Pune Mumbai Highway, Wekdewadi, Pune – 411003, Maharashtra, India Email: aroradinesh10@gmail.com
Nature of instrument creating charge	Memorandum for recording Extention of Mortgage by Deposit of Title Deeds covering Enhanced limits and/or creation of Equitable Mortgage on additional properties for exiting limits and enhanced limits and additional facilities extended by the Bank to the Borrower Company.
Date of instrument Creating the charge	03.03.2010
Amount secured by the charge	Rs. 1305.300 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per Sanction letter under reference IFB/CREDIT/328 Dated 09/12/2009 duly acknowledged by the Company for the enhanced limits through its Directors who agreed to abide all the Terms and Conditions. Terms of repayment As per Sanction letter under reference IFB/CREDIT/328 Dated 09/12/2009 duly acknowledged by the Company for the enhanced limits through its Directors who agreed to abide all the Terms and Conditions. Margin As per Sanction letter under reference IFB/CREDIT/328 Dated 09/12/2009 duly acknowledged by the Company for the enhanced limits through its Directors who agreed to abide all the Terms and Conditions. Extent and operation of the charge State Bank of India IFB Branch Pune, will have first and exclusive charge on all the properties as mentioned and geographicated in the relative Schedule of the Mortgage Deed, duly executed to create additional security as a shield to cover the enhanced limits extended by the Bank to the Borrower Company . The Charge will be in continuous operational mode till the repayment of entire loan including the interest thereon. Other The Company, by virtue of the Board Resolution passed on 03/12/2009, has given assent to all the Terms and Conditions, Covenants, as provided in the Bank's Sanction Letter IFB:/CREDIT/328 Dated 09/12/2009 and executed the related loan document(s)/ Agreement(s) through the Director(s),who have received and singed the documents in physical form and who have been authorized to file eform-8 for modifications in the existing charge,on agreed terms.
Short particulars of the property charged (Including location of the property)	Property at S.No.316/1-Kasaramboli covered under Schedule-A All that piece and parcel of Vacant Land totally adm 10 Hec.40Aars bearing Gat No.316/1at Village Kasaramboli Tal.Mulshi Distt. Pune. Property covered under Sub- Schedule "B" of the Mortgage Deed. The status duly geographicated in the schedule itself. Property covered under Sub- Schedule "C "of the Mortgage Deed. The status duly geographicated in the schedule itself. Property covered under Sub- Schedule "D" of the Mortgage Deed. The status duly geographicated in the schedule itself. Properties as denoted under Schedule of Properties:315 covered under Sub- Schedule-A, Schedule-B, Schedule-C,Schedule-D,Schedule-E.The status duly geographicated in the schedule itself. Property at Chennai Covered under Sub Schedule-A and Sub Schedule-B. The status duly geographicated in the schedule itself. All the properties covered under relative schedules are part and parcel of the Memorandum of Title Deeds which have been deposited with the Bank as Security for the Credit Limits.
Date of instrument modifying the charge	04.01.2010
Particulars of the present modification	By this modification, the Company has given additional Security of the properties, by way of Deposit of Memorandum of Title Deeds, favouring SBI IFB Branch Pune to secure the Credit Facilities extended by the Bank to the tune of Rs.1305.300 millions.

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.44.93
UK Pound	1	Rs.72.42
Euro	1	Rs.63.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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

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.