MIRA INFORM REPORT

Report Date :

06.12.2013

IDENTIFICATION DETAILS

Name :	ELECTROMECH MATERIAL HANDLING SYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :	Gate No. 316, Plot No. IA/IB, At P Kasar Amboli, Industrial Zone, Taluka Mulshi, Pune – 411004, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.05.1996
Com. Reg. No.:	11-099346
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 :	Manufacturer and Exporter of Material Handling Equipments.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is a wholly owned subsidiary of “Cranedge India Private Limited” and “Electromech Overseas Mauritius”. It is a well-established company having satisfactory track record. The company has seen a decline in its sales volume as well as net profitability during 2013 owing to slow down in the core sector and continuing subdued outlook for the sector. However, financially company seems to be strong. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of long standing experience of the management, the subject 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	07.10.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	07.10.2013

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.

INFORMATION DENIED BY

Name :	Mr. Pushkar Deodhar
Designation :	Assistant General Manager Finance
Contact No.:	91-20-22922222
Date :	05.12.2013

LOCATIONS

Registered Office / Factory / Corporate Office :	Gate No. 316, Plot No. IA/IB, At P 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 pushkar.deodhar@emech.in
Website :	www.emech.in
Area :	10000 Sq. Ft.
Location :	Owned
Factory 2 :	16/3, F – 2 Block, M.I.D.C. Pimpari, Pune – 411018, Maharashtra, India
Tel. No.:	91-20-27473666
Fax No.:	91-20-27472278
Sales and Service Network :	Ahmedabad Office Shop No.8, Sayam Mall, Satellite, Ahmedabad - 380015, Gujarat, India Bangalore Office No. 22, 3rd Floor, Above Bombay Dyeing Showroom, 5th cross, 5th Block, Koramangala, Bangalore - 500095, Karnataka, India Chennai Office No. 6, 5th Floor, B wing, Gemini Parsn Manere No. 602, Anna Salai, Chennai -600006, Tamilnadu, India Delhi Office 812, Pearl Best Heights - II, Netaji Subhash Place, New Delhi – 110034, India Hyderabad Office: H. No.: 16-2-705/1/6/A, Professors Colony, Malakpet, Hyderabad - 500036, Andhra Pradesh, India Kolkata 716, Jogendra Gardens, Ground Floor, Bosepukar, Kolkata - 700078, West Bengal, India     Mumbai Office A-103, Royale, Neelkanth Palms, Kapurbawdi, sThane (West) - 400607, Maharashtra, India
Overseas Office:	Electromech FZE, LOB 19 1002, P.O. Box 263019, Jebel Ali Free Zone, Dubai - UAE
Tel No.:	971-4-8857466
Fax No.:	971-4-8857655

DIRECTORS

As on 13.07.2013

Name :	Mr. Tushar Vinayak Mehendale
Designation :	Managing director
Address :	Flat No. 2, Nishigandha Apartments, 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.
PAN No.:	ACDPM3069L
Date of Appointment :	09.04.1996
DIN No.:	01846705
Name :	Ms. Awanti Tushar Mehendale
Designation :	Director
Address :	Flat No. 2, Nishigandha Apartments, Prabhat Road, CTT CTS 105/6FP No. 64/6, Pune – 411004, Maharashtra, India
Date of Birth/Age :	12.09.1976
PAN No.:	AGWPM7216N
Date of Appointment :	01.01.2007
DIN No.:	00434591
Name :	Mr. Prakash Bagla
Designation :	Director
Address :	Flat No.603C, Vastu Sidhi, Rajmata Jijabai Road, Near Pump House, Andheri (East), Mumbai – 400093, Maharashtra, India
Date of Birth/Age :	11.11.1975
Date of Appointment :	28.02.2011
DIN No.:	03043874
Name :	Mr. Prakash Manohar Kulkarni
Designation :	Director
Address :	Flat No. G 703 and 803, Rohang Arima, Shivaji Nagar, Pune – 411016, Maharashtra, India
Date of Birth/Age :	09.06.1947
Date of Appointment :	30.06.2012
DIN No.:	00019652
Name :	Mr. Charuchandra Ganesh Patankar
Designation :	Director
Address :	616, Sindh Housing Society, RD 6, Aundh, Pune – 411007, Maharashtra, India
Date of Birth/Age :	06.06.1956
Date of Appointment :	30.06.2012
DIN No.:	00136573

KEY EXECUTIVES

Name :	Mr. Pushkar Deodhar
Designation :	Assistant General Manager Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 13.07.2013

Names of Shareholders	No. of Shares
Mehendale Vinayak Tushar	3916117
Mehendale Vinayak Surekha	247666
Mehendale Tushar Awanti	233000
Mehendale Vinayak Kedar	125055
Tushar Vinayak Mehendale	85254
Tushar Vinayak Mehendale	3030
Tushar Vinayak Mehendale	4326
Kedar Vinayak Mehendale	64005
Kedar Vinayak Mehendale	3167
Kedar Vinayak Mehendale	2773
Surekha Vinayak Mehendale	64042
Surekha Vinayak Mehendale	3158
Surekha Vinayak Mehendale	21134
India Busines Excellence Fund 1, India	152273
ILFS Trust Company, India	75000
Total	5000000

As on 13.07.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	92.14
Other	5.02
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Material Handling Equipments.
Products :	Material Handling Equipments

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

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

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Fully convertible debentures	400.000	400.000
Loans taken for fixed assets	0.344	1.136
Short-term borrowings
Working capital loans from banks	92.066	0.000
Loans repayable on demand from banks	0.000	106.401
Loans repayable on demand from others	45.715	120.453
Total	538.125	627.990

Banking Relations :	---
Auditors :
Name :	B K Khare and Company Chartered Accountants
Address :	Prabhat Road, Erandwane, Pune, Maharashtra, India
PAN No.:	AAAFB0265E
Fellow Subsidiary Company :	Electromech FZE
Subsidiary company :	Cranedge India Private Limited
Associates :	· Electromech Engineers · Tushar Constructions · Electromech Enterprises · Rajapur Shipyards Private Limited · Anay Infra Projects Private Limited

CAPITAL STRUCTURE

As on 13.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	50.000	50.000	50.000
(b) Reserves & Surplus	379.160	364.790	306.510
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	429.160	414.790	356.510
(3) Non-Current Liabilities
(a) long-term borrowings	400.344	401.136	247.225
(b) Deferred tax liabilities (Net)	28.455	27.144	24.028
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	1.515	0.000
Total Non-current Liabilities (3)	428.799	429.795	271.253
(4) Current Liabilities
(a) Short term borrowings	137.781	226.854	417.754
(b) Trade payables	171.693	295.173	330.586
(c) Other current liabilities	200.204	306.121	198.277
(d) Short-term provisions	18.463	18.908	6.132
Total Current Liabilities (4)	528.141	847.056	952.749
TOTAL	1386.100	1691.641	1580.512
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	481.556	491.680	419.846
(ii) Intangible Assets	0.946	1.660	0.000
(iii) Capital work-in-progress	8.968	8.968	63.374
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	99.699	99.699	21.481
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	73.341	65.610	63.860
Total Non-Current Assets	664.510	667.617	568.561
(2) Current assets
(a) Current investments	0.000	17.534	0.000
(b) Inventories	248.991	281.364	353.107
(c) Trade receivables	422.913	613.933	549.809
(d) Cash and cash equivalents	15.599	54.490	60.987
(e) Short-term loans and advances	25.192	44.556	42.053
(f) Other current assets	8.895	12.147	5.995
Total Current Assets	721.590	1024.024	1011.951
TOTAL	1386.100	1691.641	1580.512

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1148.100	1655.000	1651.000
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	134.100	57.200
Less/ Add	DEPRECIATION/ AMORTISATION		NA	20.500	15.200
	PROFIT BEFORE TAX		NA	113.600	42.000
Less	TAX		NA	38.000	16.000
	PROFIT AFTER TAX		26.100	75.600	26.000
Less	PRIOR PERIOD ADJUSTMENTS		0.000	0.000	7.500
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		268.100	215.100	203.900
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	8.000	5.000
		Dividend	1.700	2.100	0.300
		Tax on Dividend	10.000	12.500	2.000
	BALANCE CARRIED TO THE B/S		280.500	268.100	215.100
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	13.862	39.763	87.123
	TOTAL EARNINGS		13.862	39.763	87.123
	VALUE FOR IMPORTS		171.129	237.344	178.035
	Earnings Per Share (Rs.)		5.22	15.12	3.69

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	NA	6.86	2.54
Return on Total Assets (PBT/Total Assets}	(%)	NA	7.26	2.81
Return on Investment (ROI) (PBT/Networth)		NA	0.27	0.12
Debt Equity Ratio (Total Debt /Networth)		1.25	1.51	1.87
Current Ratio (Current Asset/Current Liability)		1.37	1.21	1.06

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term debt	0.791	19.756	86.907

Sr. No.	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	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
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	Yes
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	Yes

Note:

The registered office 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 w.e.f 01.07.2009

OUTLOOK FOR THE FUTURE

The current order book position is healthy and enquiries have been good for specialized cranes. This augurs well for the Company. Barring unforeseen circumstances the current year should be a favorable one for the Company

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10456855	07/10/2013	150,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B87683207
2	10368141	09/07/2012	150,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B44720456
3	90093359	07/10/2013 *	918,000,000.00	STATE BANK OF INDIA	I.F. BRANCH, TARA CHAMBERS, OLD MUMBAI PUNE HIGHWAY, NEAR MARIAAI POLICE CHOWKY, WAKDEWADI, PUNE, MAHARASHTRA - 411003, INDIA	B87682746

* Date of charge modification

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office equipment

Intangible Assets

· Computer Software

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 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.61.69
UK Pound	1	Rs.101.08
Euro	1	Rs.84.07

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.