MIRA INFORM REPORT

Report Date :

29.06.2012

IDENTIFICATION DETAILS

Name :	SCHENCK ROTEC INDIA LIMITED (w.e.f. 20.01.2006)
Formerly Known As :	SCHENCK AVERY PRIVATE LIMITED
Registered Office :	Plot No.A-5, Sector 81, Phase II, Noida-201 305, Uttar Pradesh
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	11.07.1986
Com. Reg. No.:	20-030401
Capital Investment / Paid-up Capital :	Rs.86.385 Millions
CIN No.: [Company Identification No.]	U74999UP1986PLC030401
TAN No.: [Tax Deduction & Collection Account No.]	MRTS05159A
PAN No.: [Permanent Account No.]	AAACS6590E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Balancing and Diagnosis
No. of Employees :	100 (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 690000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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 :	Sandeep Srivastava
Designation :	Account Manager
Contact No.:	91-120-2563174
Date :	07.06.2012

LOCATIONS

Registered Office/ Factory :	Plot No.A-5, Sector 81, Phase II, Noida-201 305, Uttar Pradesh, India
Tel. No.:	91-120-2563174 / 2563175 / 2563176 / 2563177 / 2563178 / 2563179
Fax No.:	91-120-2563172 / 2563173
E-Mail :	ssrivastava@schenck-ind.com roopali@schenck-ind.com sril@schenck-ind.com
Website :	http://www.schenck-india.com
Location :	Owned
Sales Offices :	Ø Ahmedabad Ø Bangalore Ø Chennai Ø Delhi Ø Hyderabad Ø Indore Ø Pune Ø Maha rashtra Ø Jamshedpur Ø Jharkhand Ø Madhya Pradesh Ø Gujarat
Branches :	Ø Europe Ø America Ø Asia

DIRECTORS

As on 30.06.2011

Name :

Mr. Vikas Chandra

Designation :

Managing Director

Address :

T2/1103, Parsvanath Estate, Sector Omega Pocket P-2, Greater Noida-201 306, Uttar Pradesh, India

Date of Birth/Age :

29.01.1955

Qualification :

B. Tech (Mechanical), MBA. (IIM/CAL)

Date of Appointment :

01.05.2002

DIN No.:

01390060

Last Employment:

Lohia Starlinger Limited (General Manager)

Name :

Mr. Ralf Michael Fuchs

Designation :

Director

Address :

Unetrmain Anlage-5, 60329, Frankfurtam, Germany

Date of Birth/Age :

23.05.1958

Date of Appointment :

11.09.2002

DIN No.:

00841363

Name :

Mr. Wolfgang Helmut Maria Scheithe

Designation :

Director

Address :

64347, Griesneim / Darmstadt Zeppelinstabe, 4A, Germany

Date of Birth/Age :

11.03.1950

Date of Appointment :

29.06.2009

DIN No.:

02630951

Name :

Mr. Franz Peter Matheis

Designation :

Director

Address :

Max-Reger-Strasse-16, 69121, Heidelberg, Germany

Date of Birth/Age :

23.03.1967

Date of Appointment :

29.06.2009

DIN No.:

02634494

Name :

Mr. Arvinder Singh

Designation :

Director

Address :

D-002, Suncity Heights, Golf Course Road, Sector-54, Gurgaon-122 003, Haryana, India

Date of Birth/Age :

05.07.1955

Date of Appointment :

09.11.2009

DIN No.:

02733311

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999UP1986PLC030401	SCHENCK ROTEC INDIA LIMITED	Director	09-11-09	09-11-09	-	Active	NO
2	U74140DL2008PTC177681	AP Finsmart Advisory Services Private Limited	Additional director	30-04-10	30-04-10	-	Active	YES

KEY EXECUTIVES

Name :	Ms. Roopali Agarwal
Designation :	Secretary
Address :	8/495, Adarsh Nagar, Opposite Modi Inter College, Modi Nagar, Uttar Pradesh, India
Date of Birth/Age :	14.12.1975
Date of Appointment :	16.02.2009
PAN No.:	AKDPA2174J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Names of Shareholders	No. of Shares
Sudersha Kumar Bhatia	1
Carl Schenck AG	8638455
Sangeeta Alu	1
Vikas Chandra	3
Tarun Krishna Goswami	1
Som Nath Sista	2
A. K. Roy	1
S. S. Sharma	1
Total	8638465

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Balancing and Diagnosis
Products :	Ø Dynamic Balancing Machine Ø Vibration Measuring Monitoring and Control Equipments Ø Dynamometer
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	L/C
Purchasing :	L/C

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Dynamic Balancing Machine	Nos.	NA	60	58
Vibration Measuring Monitoring and Control Equipments	Nos.	NA	2500	1065
Dynamometer	Nos.	NA	NA	1

Note: Delicensed Products

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

100 (Approximately)

Bankers :

Ø Yes Bank, Noida, Uttar Pradesh, India

Ø Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai- 400018, Maharashtra, India

Facilities :

Secured Loan	As on 31.12.2010 (Rs. in Millions)	As on 31.12.2009 (Rs. in Millions)
From Bank	1.591	0.075
(secured against Hypothecation of Car) (Amount repayable with in one year of Rs.0.300)
Total	1.591	0.075

Banking Relations :	--
Auditors :
Name :	S. S. Kothari Mehta and Company Chartered Accountant
Address :	146-149, Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi-110 065, Delhi, India
PAN.:	AABFS6730L
Holding Companies :	Ø Durr AG (Ultimate Holding Company) Ø Carl Schenck AG (holds 99.99% shares in Schenck RoTec India Limited)
Fellow Subsidiaries :	Ø Schenck RoTec GmbH Darmstsdt, Germany Ø Schenck Shanghai Machinery Corporation Limited, Shanghai, China Ø Nagahama Seisakusho Limited, Osaka Ø Durr Assembly Products, GmbH Ø Durr Ecoclean, GmbH Ø Schenck Trebel Corporation, U.S.A Ø Durr System Incorporation Ø Durr Somac GmbH Ø Durr Ecoclean Incorporation

CAPITAL STRUCTURE

As on 30.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
9995000	Equity Shares	Rs.10/- each	Rs.99.950 Millions
5000	Preference Shares	Rs.10/- each	Rs.0.050 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8638465	Equity Shares	Rs.10/- each	Rs.86.385 Millions

Note: 8638455 Equity Shares held by Holding company, Carl Schenck AG, Germany, Ultimate Holding Company, Durr AG.

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	450.000 (Business Expansion)	400.000

Expected Sales ( 2012-13 ) : Rs.600.000 Millions

The above information has been parted by Mr. Sandeep Srivastava (Account Manager).

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		86.385	86.385	86.385
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		88.486	58.793	44.997
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		174.871	145.178	131.382
LOAN FUNDS
1] Secured Loans		1.591	0.075	0.288
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.591	0.075	0.288
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		176.462	145.253	131.670
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.594	44.141	45.908
Capital work-in-progress		0.000	0.000	2.253
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		3.533	3.698	3.095
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.468	64.196	63.004
	Sundry Debtors	87.347	95.894	77.052
	Cash & Bank Balances	82.170	17.355	27.066
	Other Current Assets	0.687	0.078	0.014
	Loans & Advances	12.696	16.433	7.636
Total Current Assets		258.368	193.956	174.772
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.906	48.879	41.659
	Other Current Liabilities	38.160	23.013	29.361
	Provisions	26.967	24.650	23.338
Total Current Liabilities		138.033	96.542	94.358
Net Current Assets		120.335	97.414	80.414
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		176.462	145.253	131.670

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income	284.707	173.188	180.975
		Other Income	50.494	34.839	26.543
		TOTAL (A)	335.201	208.027	207.518
Less	EXPENSES
		Raw Material Consumed	125.800	65.066	79.115
		Personnel Expenses	81.249	68.722	55.066
		Operating and Other Expenses	87.032	54.707	48.922
		(Increase) and Decrease in Inventories	(4.977)	(7.381)	(9.510)
		TOTAL (B)	289.104	181.114	173.593
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		46.097	26.913	33.925
Less	FINANCIAL EXPENSES (D)		1.529	0.949	2.002
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		44.568	25.964	31.923
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.496	4.292	4.745
	PROFIT BEFORE TAX (E-F) (G)		39.072	21.672	27.178
Less	TAX (I)		9.379	7.875	12.045
	PROFIT AFTER TAX (G-I) (J)		29.693	13.797	15.133
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		27.404	13.607	(1.526)
	BALANCE CARRIED TO THE B/S		57.097	27.404	13.607
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	9.795	28.074	20.080
		Commission Earnings	36.395	21.530	24.935
	TOTAL EARNINGS		46.190	49.604	45.015
	Note: (Excludes the amount of deemed exports)
	IMPORTS
		Raw Materials and Components	28.295	15.804	22.289
	TOTAL IMPORTS		28.295	15.804	22.289
	Earnings Per Share (Rs.)		3.44	1.60	1.75

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	8.86	6.63	7.29
Net Profit Margin (PBT/Sales)	(%)	13.72	12.51	15.02
Return on Total Assets (PBT/Total Assets}	(%)	12.56	9.10	12.31
Return on Investment (ROI) (PBT/Networth)		0.22	0.15	0.21
Debt Equity Ratio (Total Liability/Networth)		0.80	0.66	0.72
Current Ratio (Current Asset/Current Liability)		1.87	2.01	1.85

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last five years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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	No
30) Major Shareholders, if available	Yes

FINACIAL RESULT:

The Total Income of the company has increased to Rs.335.201 Millions in 2010 as compared to Rs.208.027 Millions in 2009 and Profit before tax has increased to Rs.39.072 Millions as compared to Rs.21.672 Millions in 2009.

OPERATIONS:

During the year 2010, the company has successfully executed prestigious orders for leading Indian Companies such as MRF, Larsen and Toubro Limited, Birla Tyers, General Motors, Reitz India, Kirloskar Brothers, CEVA (through Volkswagon)

PROSPECTS:

The current affairs of the company are indicative of still better prospects for the year 2011. The company has a good order backlog and there is a continued inflow of further orders.

With the return of better economic conditions, Industrial growth is now in fine health. This has resulted in many benefits for the company which includes good order booking and pickup in sales. The sales project pipeline is also very healthy leading to the belief that booking, sales and profit before tax will also be better in 2011.

INDUSTRIAL RELATIONS:

Industrial relations remained satisfactory and directors appreciate the efforts of the company’s employee at all levels.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

PARTICULARS	31.12.2010 (Rs. in Millions)
(a) Counter guarantees given by the banks in respect of performance of machines sold and advances received from customers.	33.350
(b) Orders against the company relating to disallowances of expenses and transfer pricing cases for Assessment year 2002-03 and 2004-05 respectively	14.215
(c) Claims against the company not acknowledged as debt to the extent ascertainable	0.501
Total	48.066

Bankers Charges Report as per Registry

Corporate identity number of the company	U74999UP1986PLC030401
Name of the company	SCHENCK ROTEC INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.A-5, Sector 81, Phase II, Noida-201 305, Uttar Pradesh, India Email: roopali@schenck-ind.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10177582
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai- 400018, Maharashtra, India Email: dlbbcaddel@yesbank.in
Nature of instrument creating charge	MOE Dated 22-03-2011
Date of instrument Creating the charge	22.03.2011
Amount secured by the charge	Rs.40.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit-Yes bank Base Rate plus 5.50p.a. i.e. 12.50% PBG(SL of CC)- 1.00% p.a payable upfront WCDL-Yes bank Base Rate plus 3.50p.a. i.e. 10.50% Terms of Repayment Cash Credit-Repayable on Demand Performance Bank Guarantee(SL of CC)-12 Months (including Claim Period, if any) WCDL- Max. 90 Days Margin Cash Credit-25% on (Book Debts<90 Days plus stocks minus creditors) Performance Bank Guarantee (SL of CC)-20% in the form of FD Receipts to be kept under Lien with Yes Bank Limited. WCDL-25% on (Book Debts<90 Days plus stocks minus creditors) Extent and Operation of the charge The Facility is secured by the Company’s Immovable Property Plot bearing No.05, ad measuring about 12500 Sq. mtrs, situated at Block No. A, Sector 81, Noida, Uttar Pradesh to secure repayment of aggregate sum of Rs.40.000 millions together with interest ,cost, charges, expenses and all other monies payable by the company to the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Plot bearing No.05, ad measuring about 12500 Sq. mtrs, situated at Block No. A, Sector 81, Noida, Uttar Pradesh
Date of instrument modifying the charge	11.03.2011
Particulars of the present modification	The Facility is also secured by the Company’s Immovable Property Plot bearing No.05, ad measuring about 12500 Sq. mtrs, situated at Block No. A, Sector 81, Noida, Uttar Pradesh to secure repayment of aggregate sum of Rs.40.000 millions together with interest ,cost, charges, expenses & all other monies payable by the company to the Bank.

FIXED ASSETS:

Ø Computer Software

Ø Leasehold Land

Ø Building (Office and Factory)

Ø Plant and Machinery

Ø Furniture, Fixture and Office Equipments

Ø Motor Vehicles

Ø Motor Vehicles on Lease

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.56.91
UK Pound	1	Rs.88.90
Euro	1	Rs.71.24

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	DPTP

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--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.