MIRA INFORM REPORT

Report Date :

02.11.2012

IDENTIFICATION DETAILS

Name :	REXNORD ELECTRONICS AND CONTROLS LIMITED (w.e.f. 15^th April, 1994)
Formerly Known As :	REXNORD ELECTRONICS AND CONTROLS PRIVATE LIMITED
Registered Office :	92-D, Government Industrial Estate, Charkop, Kandivli (West), Mumbai – 400 067, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.07.1988
Com. Reg. No.:	11-047946
Capital Investment / Paid-up Capital :	Rs.64.803 millions
CIN No.: [Company Identification No.]	L31200MH1988PLC047946
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14046E
PAN No.: [Permanent Account No.]	AAACR2920H
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing and selling of instrument cooling fans, exhaust fans and motors.
No. of Employees :	Approximately 24 officers and other staff

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 330000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The profitability of the company appears to be low. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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/ Head Office :	92-D, Government Industrial Estate, Charkop, Kandivli (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-28683087/ 28684715/ 28686088
Fax No.:	91-22-28687784
E-Mail :	domestic@rexnordindia.com sales@rexnordindia.com (Local Sales) exports@rexnordindia.com (Export Sales) rexnord@bom3.vsnl.net.in
Website :	http://www.rexnordindia.com
Factory 1 :	Unit No.12-15, Sarswati Building, Tungareshwar Industrial Estate, Sativali, Vasai (East), Thane, Maharashtra, India
Factory 2 :	62, 74, 75, 20, Village Davdal, Opposite Sagar Hotel, Kaman, Village-Devdal, Taluka-Vasai, District Thane, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Kishorechand Kewalkishore Talwar

Designation :

Managing Director

Address :

802, Beach Classic, J.P. Road, Versova, Andheri (West), Mumbai – 400 061, Maharashtra, India

Date of Birth/Age :

03.04.1953

Qualification :

BA

Date of Appointment :

01.04.2012

PAN No.:

AADPT0178P

DIN No.:

00351751

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	L31200MH1988PLC047946	REXNORD ELECTRONICS AND CONTROLS LIMITED	Managing director	01/04/2012	04/07/1988	-	Active	NO

Name :

Ms. Nainy Kishorechand Talwar

Designation :

Whole-Time Director

Address :

802, Beach Classic, J.P. Road, Versova, Andheri (West), Mumbai – 400 061, Maharashtra, India

Date of Birth/Age :

24.09.1981

Qualification :

M. Com., M.B.A in Marketing from NMIMS, Diploma in Import and Export

Date of Appointment :

01.04.2012

PAN No.:

ADFPT8904Q

DIN No.:

00351762

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	L31200MH1988PLC047946	REXNORD ELECTRONICS AND CONTROLS LIMITED	Whole-time director	01/04/2012	01/08/2001	-	Active	NO

Name :

Mr. Ram Sanehi

Designation :

Director

Address :

GH-14/166, Paschim Vihar, New Delhi – 110 041, India

Date of Birth/Age :

14.02.1938

Qualification :

MA Sociology

Date of Appointment :

03.03.2010

DIN No.:

02992889

Name :

Mr. Ayyaswami Sundaram

Designation :

Director

Address :

9, Sheetal Apartment, Maldani, Jain Parijat Nagar, Guruprasad, Nasik – 422 007, Maharashtra, India

Date of Birth/Age :

18.01.1961

Qualification :

MSC in Physics

Date of Appointment :

03.03.2010

DIN No.:

02997721

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	L31200MH1988PLC047946	REXNORD ELECTRONICS AND CONTROLS LIMITED	Director	03/03/2010	03/03/2010	-	Active	NO
2	U93090MH2010PTC208220	QES INFO SOLUTIONS PRIVATE LIMITED	Director	01/12/2010	01/12/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholders	No. of Shares	Percentage of holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3020771	46.61
Sub Total	3020771	46.61
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3020771	46.61
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	2000	0.03
Sub Total	2000	0.03
(2) Non-Institutions
Bodies Corporate	147563	2.28
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1548809	23.90
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1448140	22.34
Any Others (Specify)	313917	4.84
Non Resident Indians	12000	0.19
Overseas Corporate Bodies	300000	4.63
Clearing Members	1917	0.03
Sub Total	3458429	53.36
Total Public shareholding (B)	3460429	53.39
Total (A)+(B)	6481200	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	6481200	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing and selling of instrument cooling fans, exhaust fans and motors.

Products :

Item Code No. (ITC Code)	84145109
Product Description	Instrument Cooling Fan/ Motors Accessories, Components and Miscellaneous Items

PRODUCTION STATUS (AS ON 31.03.2011)

Licensed Capacity: Not Applicable

Installed Capacity: Instrument Cooling Fan 1602000 Pieces

Note: The licensed capacity and installed capacity as mentioned above has been certified by the directors on which auditors have relied without verifying the same.

Particulars	Unit	Production/ Purchase Qty.
Instrument/ Equipment Cooling Fans/ Motors	Nos.	1143604
Accessories, Components and Miscellaneous Items**	Nos.	528887

** Quantities do not include scrap and raw material quantities

GENERAL INFORMATION

No. of Employees :

Approximately 24 officers and other staff

Bankers :

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v The Saraswat Co-operative Bank Limited, Legal Department Central Administrative Office, 2^nd Floor, Apsara Cinema Building Dr. D.B. Marg, Grant Road, Mumbai – 400 007, Maharashtra, India

v The Saraswat Co-operative Bank Limited, Ameya, Plot No.346-B, Opposite Hotel, Nilkanth, Pathara Prabhu Co-operative Housing Society, Linking Road, Khar (West), Mumbai – 400 052, Maharashtra, India

v Development Credit Bank Limited

v Bank of Baroda

v NKGSB Co-Operative Bank Limited

v ICICI Bank Limited

v Axis Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans banks secured	(A) 13.025	0.000
Working capital loans banks secured	(B) 10.039	7.436
Loans taken for vehicles secured	(C) 5.259	3.079
Total	28.323	10.515

Notes:

(A) 1. Repayable within one year Rs.2.183 millions (P.Y Rs.0.342 million)

(B) 2. Secured by Hypothecation of stock and book debts of company and further secured by way of Equitable Mortgage of Factory Land and Building and personal guarantee of two directors of the company and three relatives of chairman and managing director of the company.

(C) 2. Repayable within one year Rs.1.288 millions (previous year Rs.1.180 millions)

Banking Relations :	--
Auditors :
Name :	R.S. Agrawal and Associates Chartered Accountants
Address :	20, Kanu Bhawan , 2^nd Floor, 22/24, Chewool Wadi, Dr. M.B. Velkar Street Mumbai – 400 002, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFR5770L

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6481200	Equity Shares	Rs.10/- each	Rs.64.812 millions
	Less: Calls in arrears (other than Directors)		Rs.0.009 million
	Total		Rs.64.803 millions

(Out of the above 1250000 shares are allotted as fully paid up bonus shares by capitalization of general reserve and capital reserves.)

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		64.803	64.803	64.803
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17.647	10.844	7.724
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		82.450	75.647	72.527
LOAN FUNDS
1] Secured Loans		28.323	10.515	25.020
2] Unsecured Loans		0.000	0.000	0.100
TOTAL BORROWING		28.323	10.515	25.120
DEFERRED TAX LIABILITIES		2.384	2.770	3.050
TOTAL		113.157	88.932	100.697
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.431	44.374	40.789
Capital work-in-progress		32.851	10.003	4.101
INVESTMENT		0.107	0.116	0.116
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	49.147	44.068	44.414
	Sundry Debtors	45.063	37.690	28.576
	Cash & Bank Balances	14.641	22.458	7.890
	Other Current Assets	4.280	3.033	0.000
	Loans & Advances	14.420	15.064	17.442
Total Current Assets		127.551	122.313	98.322
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.376	37.963	14.071
	Other Current Liabilities	57.310	44.693	25.159
	Provisions	6.097	5.218	3.401
Total Current Liabilities		93.783	87.874	42.631
Net Current Assets		33.768	34.439	55.691
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		113.157	88.932	100.697

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	273.998	209.230	149.115
		Other Income	1.901	1.340	1.238
		TOTAL (A)	275.899	210.570	150.353
Less	EXPENSES
		Consumption materials changes inventories	173.593	120.191	132.940
		Manufacturing service costs	47.390	38.396
		Employee related expenses	9.715	7.934
		Administrative selling other expenses	24.841	29.896
		Prior period items	0.000	0.349
		TOTAL (B)	255.539	196.766	132.940
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.360	13.804	17.413
Less	INTEREST FINANCIAL EXPENSES (D)		4.336	3.864	6.099
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.024	9.940	11.314
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.537	5.355	6.929
	PROFIT BEFORE TAX (E-F) (G)		10.487	4.585	4.385
Less	TAX (H)		3.684	1.465	1.025
	PROFIT AFTER TAX (G-H) (I)		6.803	3.120	3.360
Add	Excess depreciation written back for earlier years		0.000	0.000	0.158
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.843	7.723	4.205
	BALANCE CARRIED TO THE B/S		17.646	10.843	7.723
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	37.559	16.592	10.328
	TOTAL EARNINGS		37.559	16.592	10.328
	IMPORTS
		Raw Materials	86.064	47.743	37.557
		Capital Goods	1.578	2.054	0.554
		Stores & Spares	0.124	0.097	0.078
	TOTAL IMPORTS		87.766	49.894	38.189
	Earnings Per Share (Rs.)		1.05	0.48	0.54

QUARTERLY RESULTS

PARTICULARS	30.06.2011 (1^st Quarter)	30.09.2011 (2^nd Quarter)	31.12.2011 (3^rd Quarter)	31.03.2012 (4^th Quarter)	30.06.2012 (5^th Quarter)
Net Sales	67.840	59.800	73.340	69.620	80.3900
Total Expenditure	63.210	54.500	70.350	62.040	69.400
PBIDT (Excl OI)	4.630	5.300	2.990	7.580	10.990
Other Income	0.180	0.230	0.340	1.010	0.050
Operating Profit	4.820	5.530	3.330	8.590	11.040
Interest	0.880	0.970	1.050	2.020	3.710
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	3.940	4.560	2.280	6.570	7.330
Depreciation	1.310	1.320	1.370	1.970	2.310
Profit Before Tax	2.630	3.240	0.910	4.610	5.020
Tax	0.790	1.380	0.440	1.440	1.760
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Profit After Tax	1.840	1.860	0.480	3.170	3.260
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	1.840	1.860	0.480	3.170	3.260

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.47	1.48	2.23
Net Profit Margin (PBT/Sales)	(%)	3.83	2.19	2.94
Return on Total Assets (PBT/Total Assets}	(%)	6.03	2.75	3.15
Return on Investment (ROI) (PBT/Networth)		0.13	0.06	0.06
Debt Equity Ratio (Total Liability/Networth)		1.48	1.30	0.93
Current Ratio (Current Asset/Current Liability)		1.36	1.39	2.31

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	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	No
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	No
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	No

HISTORY

Subject was incorporated as a Private Limited Company on the 4^th July 1988 under the name and style of Rexnord Electronics and Controls Private Limited and, later, converted into a Public Limited Company, pursuant to the provisions of Section 23 of the Companies Act 1956 by passing a Special Resolution in the Extra-Ordinary General Meeting held on the 8^th March 1994. The Company obtained a fresh Certificate for change of name, on conversion, on the 15^th April 1994 from the Registrar of Companies, Maharashtra, at Bombay.

The Company was set up in 1988 and was initially engaged in assembly of instrument cooling fans by importing the kits in complete knock-down condition. In the year 1992, the Company entered into a Technical Collaboration with Sun Elect Trading Co. Limited (Taiwan) for manufacture of AC fans and Micron A. Engineering Co. (South Korea) for manufacture of DC fans. The Company commenced the regular in-house production of AC fans and DC fans from basic raw materials in August 1993 and February 1994 respectively.

The Company has expanded its production facilities at the existing site from 1 lac of AC fans and 2 lac of DC fans to 3 lac of AC fans and 7.62 lac of DC fans per annum. The required items of machines and moulds have been sourced through the Company's Technical Collaborators. The cost of the ongoing expansion is Rs.20.800 millions, which is financed by Equity Capital of Rs.5.000 millions, internal accruals of Rs.0.800 million and interest-free loan of Rs.0.500 million and a Term Loan of Rs.14.500 millions from SICOM under the Equipment Refinance Scheme.

The Company proposes to further expand its productions facilities at a new site in TTC Industrial Area (Electronic Zone), New Bombay. This expansion at the new site is the proposed project of the Company.

OPERATIONS

The year remained better than previous year inspite of tough competition. The sales and other income of the Company, during the year, remained at Rs.275.900 millions as against sales and other income of Rs.210.570 millions in the previous year. The Company has been able to earn net profit before tax of Rs.10.487 millions for the year as against the net profit before tax of Rs.4.585 millions in the previous year. The board expects better results for the current year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT:

The main business of the Company is manufacturing and sale of instrument cooling fans, exhaust fans and motors used in industrial and domestic purposes. The industry is directly related to the growth of the user industry in which the products find applications. The instrument cooling fans /motors are mainly used in the computer hardware equipments, power supply equipments, textile machines, refrigeration industry, injection molding machines, photocopying machines etc.

OPPORTUNITIES, THREATS, OUTLOOK, RISKS AND CONCERNS:

In spite of continuance of global recessionary trends during the year, the Company could not be much affected due to quality of its products.

The Company is experiencing pressure on margins due to immense competition from international competitors. However the Company is confident of adequately protecting its plans from the competition.

There is also pressure from rising cost of manufacturing of the products like manpower costs, processing charges and rent etc. These are risks and matter of concern and may affect the profitability of the Company.

The general outlook with respect to this industry in India is of caution under immense competitive pressure. However the intrinsic strength of the Company has helped us to effectively overcome such pressure and the sales therefore should register a modest but definite growth.

The Company is regularly investing in modernization and up-gradation of its production facilities which poised the Company to take maximum advantage of demand of its products.

The Company’s operations are predominantly comprises of only one business segment -Instrument Cooling Fans/ Motors.

FINANCIAL AND OPERATIONAL PERFORMANCE:

During the year, the Company has achieved the sales and other income of Rs.275.900 millions as against the sales and other income of Rs.210.570 millions in the previous year. The Company has earned net profit before tax of Rs.10.487 millions during the year as against the net profit before tax of Rs.4.585 millions in the previous year.

The challenges described above could not affect the Company much and the Company could be able to register net profit of Rs.6.803 millions as against net profit of Rs.3.120 millions last year in spite of global recessionary trends. During the current financial year, the Company is working towards further improvement in its profitability.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2011)

a. Guarantees given by the banks on behalf of the Company Rs.0.005 million

b. Letter of credit issued by the bankers of the Company Rs.3.710 millions

c. Disputed income tax demand of Rs.0.047 million for the assessment year 2006-07 against which the Company has filed an application for rectification with the Assessing Officer, which is yet to be decided.

d. Disputed fringe benefit tax demand of Rs.0.013 million for the Assessment year 2007-08 against which the Company has filed an application for rectification with the Assessing Officer, which is yet to be decided.

e. Disputed excise demand of Rs.0.549 million plus interest raised by the excise authorities reduced to Rs.0.290 million by the Commissioner (Appeal). The excise authorities have preferred an appeal with the Custom Excise and Service Tax Appellate Tribunal (the CESTAT) challenging the order of the Commissioner (Appeal). The Company has also preferred a further appeal with the CESTAT against the order of the Commissioner (Appeal). The CESTAT has stayed the recovery of the said demand. The Company has already provided and paid Rs.0.259 million against the said demand.

f. Liability, if any, arising on account of Bonds/Undertakings given by the Company under concessional duty / exemption schemes to Custom and Excise authorities, pending fulfillment of specified export obligation.

UNAUDITED FINANCIAL RESULTS FOR QUARTER/ YEAR ENDED 31^ST MARCH, 2012

(Rs. in millions)

Particulars	3 months ended 31.03.2012 (Unaudited)	Preceding months ended 31.12.2011 (Unaudited)	Current year ended 31.03.2012 (Unaudited)
Income from operations
Net Sales / Income from Operations (Net of Excise Duty and Sales Tax)	69.621	73.031	269.366
Other Operating Income	0.000	0.314	1.245
Total Income from Operations (net)	69.621	73.345	270.611
Expenditure
a) Cost of Materials Consumed	22.081	40.313	141.852
b) Purchases of stock-in-trade	0.000	0.000	0.000
c) Changes in inventories of finished goods, WIP and Stock-in-trade	13.230	8.221	14.391
d) Employee Benefit Expenses	1.855	2.722	8.914
e) Depreciation and Amortisation expense	1.968	1.371	5.967
f) Manufacturing Expenses	3.865	5.337	24.753
g) Processing Charges	13.216	7.605	35.707
h) Other Expenditure	7.784	6.157	24.478
Total Expenses	63.999	71.726	256.062
Profit from Operations before Other Income, Interest and Exceptional Items	5.622	1.619	14.549
Other Income	1.009	0.339	1.763
Profit before Interest and Exceptional Items	6.631	1.958	16.312
Interest	2.021	1.045	4.922
Profit after Interest but before Exceptional Items	4.610	0.913	11.390
Exceptional Items	0.000	0.000	0.000
Profit (+)/ Loss (-) from Ordinary Activities before Tax	4.610	0.913	11.390
Tax Expenses
a) Income tax for current year	(0.124)	0.076	2.053
b) MAT Credit entitlement	(0.104)	0.000	(0.104)
c) Income tax for prior years	0.002	0.000	0.007
d) Deferred Tax	1.666	0.362	2.095
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax	3.170	0.475	7.339
Extraordinary Items	0.000	0.000	0.000
Net Profit	3.170	0.475	7.339
Paid up equity share capital (Face value of Rs.10/- per share)	64.803	64.803	64.803
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--	--	--
EPS before Extraordinary items (in Rs)
Basic & Diluted EPS before Extraordinary items	0.49	0.07	1.13
EPS after Extraordinary items (in Rs)
Basic & Diluted EPS after Extraordinary items	0.49	0.07	1.13
A) PARTICULARS OF SHAREHOLDING
Number of Public Shareholding	3505429	3555429	3505429
Percentage of Public Shareholding	54.09	54.86	54.09
Promoters and Promoter Group Shareholding
Pledged / Encumbered
Number of Shares	--	--	--
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	--	--	--
Percentage of Shares (as a% of the total share capital of the company)	--	--	--
Non-encumbered
Number of Shares	2975771	2925771	2975771
Percentage of Shares (as a% of the total shareholding of promoter & prom group)	100.00	100.00	100.00
Percentage of Shares (as a % of the total share capital of the company)	45.91	45.14	45.91

Particulars	3 months ended 31.03.2012
B. INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

Notes:

1. The above results have been reviewed by Audit Committee and approved and taken on record by the Board of Directors at its meeting held on May 15, 2012.

2. The Statutory Auditors have carried out limited review of the above financial results.

3. Since Company's operations are predominantly comprises of only one business segment "Instrument Cooling Fan/Motors", segment reporting is not given.

4. Previous year/period figures have been regrouped/reclassified wherever necessary to make them comparable with the figures of current year/period.

FIXED ASSETS:

v Leasehold Land

v Factory Building

v Residential Flat

v Plant and Machinery

v Moulds and Dies

v Furniture and Fixtures

v Office Equipments

v Vehicles

v Computers

v Factory Equipments

WEBSITE DETAILS:

PROFILE:

Established in 1988, Subject has evolved into one of the India’s premier manufacturer’s of high quality Compact Cooling Fans and Single Phase Shaded Pole Motors.

The firm’s success can be attributes to the continuous development and testing of products, investment not only in plant and machinery but also in employees at all levels and concentration on niche markets.

For over two decades Rexnord has worked in close contact with engineers from around the world, understanding their needs and designing equipments to satisfy all their requirements.

At Rexnord they have the latest techniques and machineries to meet high production standards combined with a team of highly qualified and experienced professionals who are constantly striving for high quality products and service.

Passionately involved in R&D, they aim at constantly improving their products by taking advantage of the latest development methods and state of the art technology.

They believe in high quality, cost effective and reliable cooling solutions designed for an extensive range of applications, including IT and Telecom, Ventilation, Refrigeration and Equipment Cooling which are renowned internationally.

Over the years the company has developed an enviable reputation for quality and reliability. This is due to the company philosophy that all products are tested during the manufacturing stage to ensure customer delight.

In order to keep pace with developments in air movement technology, all fan selections are designed using the latest CAD/Cam technology to produce high quality and precision engineering. This enables Rexnord to tailor specifications to suit the individual requirements and process projects quickly, efficiently and cost effectively every time.

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 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.53.77
UK Pound	1	Rs.86.77
Euro	1	Rs.69.71

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		35

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.