MIRA INFORM REPORT

Report Date :

31.12.2013

IDENTIFICATION DETAILS

Name :	SCHWING STETTER (INDIA) PRIVATE LIMITED
Registered Office :	F-71, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kanchipuram-602105, Tamilnadu
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	18.06.1998
Com. Reg. No.:	18-046270
Capital Investment / Paid-up Capital :	Rs.240.945 Millions
CIN No.: [Company Identification No.]	U45309TN1998PTC046270
TAN No.: [Tax Deduction & Collection Account No.]	CHES20172F
PAN No.: [Permanent Account No.]	AADCS5069D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Marketing of readymix concrete handling machinery and related spares and services.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 7780000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a wholly-owned subsidiary of Schwing. It is a well-established company having fine track record. There appears drastic dip in the profit of the company during 2012. Reserves of the company also appears to be low. However, rating takes into consideration the strong brand name, robust market position, technology and product support from Schwing Gmbh, a global leader in the ready mix concrete equipment sector. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. 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, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “A-”
Rating Explanation	Have adequate degree of safety and carry low credit risk.
Date	13.09.2013

Rating Agency Name	CRISIL
Rating	Short term rating: “A2+”
Rating Explanation	Have strong degree of safety and carry low credit risk.
Date	13.09.2013

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Balaji
Designation :	Deputy Manager Finance
Contact No.:	91-44-37178301
Date :	30.12.2013

LOCATIONS

Registered / Corporate Office / Factory :	F-71, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kanchipuram-602105, Tamilnadu, India
Tel. No.:	91-44-27156780 / 1 / 27156537 / 8 / 47108100 / 37178100 / 37178301
Fax No.:	91-44-27156539 / 37178319
E-Mail :	subramanian.ar@schwingstetterindia.com schwing@vsnl.com chennai@schwingstetterindia.com balaji.j@schwingstetterindia.com ars.manian@schwingstetterindia.com
Website :	www.schwingstetterindia.com
Location:	Owned
Branch Office :	Located At: · Mumbai Bangalore Hyderabad Chandigarh Pune New Delhi Ahmedabad Cochin Kolkata

DIRECTORS

As on 28.06.2013

Name :

Mr. Gerhard Schwing

Designation :

Chairman cum Director

Address :

Holbeinstr 3, Herne, Germany – 44651

Date of Birth/Age :

13.09.1947

Date of Appointment :

27.06.2008

DIN No.:

02166664

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	Company/ LLP Status	Defaulting status
1	U45309TN1998PTC046270	SCHWING STETTER (INDIA) PRIVATE LIMITED	Director	27/06/2008	25/02/2008	Active	NO

Name :

Mr. Ananthanarayan Sundaresan

Designation :

Managing Director

Address :

Flat No. D-2, Block II, Mangolia Park, Five Furlong Road, Guindy, Chennai-600032, Tamilnadu, India

Date of Birth/Age :

24.05.1957

Date of Appointment :

06.01.2002

PAN No.:

ADEPA3158J

DIN No.:

01028552

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	Company/ LLP Status	Defaulting status
1	U45309TN1998PTC046270	SCHWING STETTER (INDIA) PRIVATE LIMITED	Managing director	06/01/2002	06/01/2002	Active	NO
2	U51900TN2012PTC088576	SCHWING STETTER SALES AND SERVICES PRIVATE LIMITED	Director	01/10/2013	21/11/2012	Active	NO

Name :

Mr. Achim Michael Waldemar Schoder

Designation :

Director

Address :

Stuttgarter Strate 86, Kirschheim Unter Teck, Germany – 73230

Date of Birth/Age :

21.03.1953

Date of Appointment :

27.06.2008

DIN No.:

02166685

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	Company/ LLP Status	Defaulting status
1	U45309TN1998PTC046270	SCHWING STETTER (INDIA) PRIVATE LIMITED	Director	27/06/2008	25/02/2008	Active	NO

Name :

Mr. Gunther Abolins

Designation :

Director

Address :

Raupolzer Weg 22A, Bad Gornenbach, Germany – 87730

Date of Birth/Age :

01.11.1950

Date of Appointment :

27.06.2008

DIN No.:

02330188

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	Company/ LLP Status	Defaulting status
1	U45309TN1998PTC046270	SCHWING STETTER (INDIA) PRIVATE LIMITED	Director	27/06/2008	29/05/2008	Active	NO

Name :

Mr. Angarai Raghavan Subramanian

Designation :

Executive Director (Finance)

Address :

Flat P2, Ragavilla No.15, Jagadambal Colony, I, Street Royapettah, Chennai-600014, Tamilnadu, India

Date of Birth/Age :

18.08.1958

Qualification:

FCA, FCS,

Date of Appointment :

28.06.2013

DIN No.:

01544903

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	Company/ LLP Status	Defaulting status
1	U45309TN1998PTC046270	SCHWING STETTER (INDIA) PRIVATE LIMITED	Director	28/06/2013	01/01/2013	Active	NO
2	U51900TN2012PTC088576	SCHWING STETTER SALES AND SERVICES PRIVATE LIMITED	Additional director	01/10/2013	01/10/2013	Active	NO

Name :

Mr. Sakthikumar Velayutham Govindarajan

Designation :

Whole Time Director - Operations

Address :

Ceebros Boulevard, FL 511, 3/381, OMR, Rajiv Gandhi Salai, Thuraipakkam, Chennai – 600097, Tamilnadu, India

Date of Birth/Age :

30.01.1965

Qualification:

B.Tech, MBA,

Date of Appointment :

28.06.2013

DIN No.:

06475756

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	Company/ LLP Status	Defaulting status
1	U45309TN1998PTC046270	SCHWING STETTER (INDIA) PRIVATE LIMITED	Director	28/06/2013	01/01/2013	Active	NO
2	U51900TN2012PTC088576	SCHWING STETTER SALES AND SERVICES PRIVATE LIMITED	Managing director	01/10/2013	01/10/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Angarai Raghavan Subramanian
Designation :	Company Secretary
Address :	Flat P2, Ragavilla No.15, Jagadambal Colony, I, Street Royapettah, Chennai-600014, Tamilnadu, India
Date of Birth/Age :	18.08.1958
Date of Appointment :	01.07.2003
PAN No.:	AIGPS3888L
Name :	Mr. Balaji
Designation :	Deputy Manager Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.06.2013

Names of Shareholders	No. of Shares
Schwing GmbH, Germany	24094510
Schwing Verwaltungs-UND Beteiligungs GmbH, Germany	1
TOTAL	24094511

As on 28.06.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of readymix concrete handling machinery and related spares and services.

Products :

Item Code No. (ITC Code)	Product Description
84743110	Batching Plant
84743110	Mixer
84134000	Pump

Exports :

Products :

Finished Good

Countries :

· South Asia

· Central Africa

· Germany

Imports :

Products :

Raw Materials

Countries :

Germany

Terms :

Selling :

Credit

Purchasing :

Credit and Depend

GENERAL INFORMATION

Customers :

End Users and Others

No. of Employees :

Not Divulged

Bankers :

· Kotak Mahindra Bank Limited, Capitale, 11^th Floor, 555, Anna Salai, Teynampet, Chennai-600018, Tamilnadu, India

State Bank of India, Overseas Branch, No.86, Rajaji Salai, Chennai-600001, Tamilnadu, India

ING Vysya Bank Limited, 185,Anna Salai, Near TVS, Chennai - 600006, Tamilnadu, India

HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Facilities :

SECURED LOANS	31.12.2012 (Rs. in Millions)	31.12.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	37.431	0.000
Foreign currency term loans from Banks	421.934	371.805
Long-term maturities of finance lease obligations (Secured by Hypothecation of the vehicles under the lease arrangement.)	6.444	4.727
SHORT TERM BORROWINGS
Non-convertible debentures banks (Repayable on Demand)	0.000	550.000
Rupee term loans from banks (Secured by Pari passu first charge on all the current assets and Second Pari passu charge on all the fixed assets of the Company.)	700.000	1210.000
Working capital loans from banks (Secured by Pari passu first charge on all the current assets and Second Pari passu charge on all the fixed assets of the Company.)	51.733	237.267
Total	1217.542	2373.799

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	No. 10, Mahatma Gandhi Road, Nungambakkam, Chennai - 600034, Tamilnadu, India
Tel. No.:	91-44-39145000
Fax No.:	91-44-39145999
Income-tax PAN of auditor or auditor's firm :	AAAFB9852F
Holding company:	Schwing GMBH, Germany
Associates / Fellow subsidiaries:	· Stetter GmbH, Germany SCHWING America Inc., USA SCHWING GmbH, Austria SCHWING GmbH, Dubai SCHWING Equipamentos Industrials Ltda, Brazil SCHWING Hydraulik Electronik GmbH, Germany SCHWING Project GmbH, Herne SCHWING- Stetter S.A France SCHWING- Stetter Baumaschinen GmbH. Austria SCHWING- Stetter Ostrava, S.R.O. Czech Republic SCHWING- Stetter B.V. Netherlands SCHWING- Stetter Skandinavien, Sweden SCHWING Shanghai Machinery Co Ltd. Shanghai, China SCHWING Stetter Iberica S.LU, Madrid, Spain SCHWING Stetter (India) Trading GmbH
Wholly owned subsidiary:	Schwing Stetter (India) Trading GMBH, Germany

CAPITAL STRUCTURE

As on 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24094511	Equity Shares	Rs.10/- each	Rs.240.945 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	240.945	240.945
(b) Reserves & Surplus	1703.797	1671.052
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1944.742	1911.997
(3) Non-Current Liabilities
(a) long-term borrowings	465.809	376.532
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.876	2.083
(d) long-term provisions	68.484	57.030
Total Non-current Liabilities (3)	535.169	435.645
(4) Current Liabilities
(a) Short term borrowings	1868.784	2685.000
(b) Trade payables	1156.706	1196.825
(c) Other current liabilities	367.632	230.137
(d) Short-term provisions	21.666	26.888
Total Current Liabilities (4)	3414.788	4138.850
TOTAL	5894.699	6486.492
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1053.799	493.863
(ii) Intangible Assets	76.693	85.443
(iii) Capital work-in-progress	15.510	173.998
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	19.463	0.000
(c) Deferred tax assets (net)	19.391	18.756
(d) Long-term Loan and Advances	155.483	124.950
(e) Other Non-current assets	16.083	12.638
Total Non-Current Assets	1356.422	909.648
(2) Current assets
(a) Current investments
(b) Inventories	3020.862	3305.625
(c) Trade receivables	1038.813	1054.346
(d) Cash and cash equivalents	240.167	854.486
(e) Short-term loans and advances	238.005	319.709
(f) Other current assets	0.430	42.678
Total Current Assets	4538.277	5576.844
TOTAL	5894.699	6486.492

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		240.945
2] Share Application Money		0.000
3] Reserves & Surplus		1486.072
4] (Accumulated Losses)		0.000
NETWORTH		1727.017
LOAN FUNDS
1] Secured Loans		1458.674
2] Unsecured Loans		107.331
TOTAL BORROWING		1566.005
DEFERRED TAX LIABILITIES		0.000
TOTAL		3293.022
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		493.455
Capital work-in-progress		18.222
INVESTMENT		13.000
DEFERRED TAX ASSETS		14.182
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2847.566
	Sundry Debtors	778.091
	Cash & Bank Balances	460.308
	Other Current Assets	0.000
	Loans & Advances	211.278
Total Current Assets		4297.243
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1281.386
	Other Current Liabilities	183.249
	Provisions	84.541
Total Current Liabilities		1549.176
Net Current Assets		2748.067
MISCELLANEOUS EXPENSES		6.096
TOTAL		3293.022

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Sales Excluding Excise Duty	7539.500	9434.100	8079.670
		Service Income	226.220	260.500	203.770
		Other Income	127.180	194.080	137.620
		TOTAL	7892.900	9888.680	8421.060
Less	EXPENSES
		TOTAL	7731.300	9304.800	7721.510
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		161.600	583.880	699.550
Less/ Add	DEPRECIATION/ AMORTISATION		113.590	80.920	84.730
	PROFIT / (LOSS) BEFORE TAX		48.010	502.960	614.820
Less	TAX		15.260	168.070	208.250
	PROFIT / (LOSS) AFTER TAX		32.750	334.890	406.570
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1361.830	1274.500	1116.550
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	33.480	40.660
		Transfer to Debenture Redemption Reserves	20.240	64.170	74.080
		Tax on Dividend	0.000	149.910	133.880
	BALANCE CARRIED TO THE B/S		1374.340	1361.830	1274.500
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	NA	105.572
		Freight reimbursement	NA	NA	0.320
		Interest income	NA	NA	8.986
	TOTAL EARNINGS		NA	NA	114.878
	IMPORTS
		Components & Spares	NA	NA	1420.636
		Capital Goods	NA	NA	0.000
	TOTAL IMPORTS		NA	NA	1420.636
	Earnings / (Loss) Per Share (Rs.)		1.36	13.90	16.87

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	0.41	3.39	4.83
Net Profit Margin (PBT/Sales)	(%)	0.62	50.19	7.42
Return on Total Assets (PBT/Total Assets}	(%)	0.82	7.99	12.83
Return on Investment (ROI) (PBT/Networth)		0.02	0.26	0.36
Debt Equity Ratio (Total Debt/Networth)		1.20	1.60	0.91
Current Ratio (Current Asset/Current Liability)		1.33	1.35	2.77

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10364406	15/06/2012	60,000,000.00	KOTAK MAHINDRA BANK LIMITED	555, CAPITALE, 11TH FLOOR,, ANNA SALAI, TEYNAMPET, CHENNAI - 600018, TAMILNADU, INDIA	B43155910
2	10289389	16/04/2011	200,000,000.00	INDUSIND BANK LTD.	2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE - 411001, MAHARASHTRA, INDIA	B13924857
3	10132302	17/10/2008	500,000,000.00	THE BANK OF NOVA SCOTIA	CLASSIC TOWERS, 1547, TRICHY ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	A51919736
4	10066904	06/08/2007	1,306,659,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A22745731
5	10061891	12/03/2010 *	400,000,000.00	ICICI BANK LIMITED	NO.110, PRAKASH PRESIDIUM, NUNGAMBAKKAM HIGH ROAD, CHENNAI - 600034, TAMILNADU, INDIA	A82814179
6	10053417	25/09/2012 *	250,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B61625646
7	90288421	15/05/2013 *	450,000,000.00	KOTAK MAHINDRA BANK LIMITED	CAPITALE, 11TH FLOOR, 555, ANNA SALAI, TEYNAMPET, CHENNAI - 600018, TAMILNADU, INDIA	B77408250
8	90285699	23/07/2012 *	270,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, NO.86. RAJAJI SALAI, CHENNAI - 600001, TAMIL NADU, INDIA	B56353006
9	90285615	25/06/2011 *	500,000,000.00	IDBI BANK LIMITED	7 CHEVALIER SHIVAJI GANESAN SALAI, T NAGAR, CHENNAI - 600017, TAMILNADU, INDIA	B16952749
10	90285511	28/01/2013 *	350,000,000.00	ING VYSYA BANK LIMITED	185,ANNA SALAI, NEAR TVS, CHENNAI - 600006, TAMILNADU, INDIA	B71351548
11	80036449	24/07/2010 *	380,000,000.00	INDIAN OVERSEAS BANK	SSI BRANCH, NO.10, G.S.T. ROAD, GUINDY, CHENNAI - 600032, TAMILNADU, INDIA	A91211136

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.12.2012 (Rs. in Millions)	31.12.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Other external commercial borrowings (Repayable on Demand)	133.435	348.628
Loans repayable on demand from banks (Repayable on Demand)	983.616	328.502
Loans repayable on demand from others	0.000	10.603
Total	1117.051	687.733

COMPANY OVERVIEW

Subject, a wholly owned subsidiary of SCHWING GmbH, Germany was incorporated on June 18, 1998. The Company is engaged in the business of manufacturing and marketing of readymix concrete handling machinery and related spares and services. The Company operates predominantly in domestic market.

PERFORMANCE OF THE COMPANY

In the year 2012, the Company recorded a decrease of 20.18% in turnover, compared to the previous year. The profit before tax was lower by 90.45% over the previous year due to high cost of inputs. This was due to delay in sanctioning the several infrastructure projects announced by Government in the Budget 2012-13. The total spending of the Government on infrastructure projects took a beating leading to reduction in infrastructure machinery spending by contractors. Competition with international presence and with deep pockets resorted to dumping of their inventory thus taking the Company’s market price realization to abysmal levels.

In August 2012 the Company commissioned operations in its fourth plant which is equipped with state of the art technology for fabrication including shot blasting with well equipped paint shop. This facility will be used for indigenous manufacture of boom pumps. The Company also completed the expansion of the concrete mixer plant.

The Company continues to face intensive competition from new players in the field, mainly in the pricing front. However the key factors, viz. quality and service are shielding the Company from the aggression of competition. With a view to expand market presence, the Company has established representative offices in Singapore and Indonesia.

In July 2012, the holding company Schwing GmbH, sold a majority stake to XCMG China, thus making the Company a part of this Chinese conglomerate.

During the year, the Company incorporated a wholly owned subsidiary in Germany by name Schwing Stetter India Trading GmbH for facilitating direct sale of FBVs and German origin spare parts to Indian customers directly to save on logistics. The annual report of this company is also annexed.

FUTURE PROSPECTS

The Company is planning to set up a few more Service Centers and Spares Depots during the next year.

The Government budget proposals have placed immense stress on the infrastructure development and investment on various other projects. It is expected that the Indian construction equipment business will grow as in the past and the market demand for the products of the Company will also increase proportionately by later part of the year 2013 after currency crisis settles down.

In the meanwhile, the Company is in the process of signing an agreement with XCMG China for selling their machinery in India either by floating a new subsidiary as a JV with them or in the company?s own name which could enhance the opportunity of improving the topline and bottom line for the year 2013 and after.

CONTINGENT LIABILITIES:

PARTICULARS	31.12.2012 (Rs. In Millions)	31.11.2012 (Rs. In Millions)
a) Claims against the company not acknowledged as debts:
- income tax related matters	0.000	4.360
- sales tax related matters	164.039	163.947
- service tax related matters	11.849	17.797
- excise duty tax related matters	71.889	74.383
b) Guarantees outstanding:
Bank Guarantees	58.806	77.148

FIXED ASSETS

v Tangible assets

Land

Buildings

Plant and equipment

Furniture and fixtures

Vehicles

Office equipment

Computer equipments

Other equipments

Leasehold improvements

v Intangible assets

Computer software

Recipes, formulae, models, designs and prototypes

PRESS RELEASE

SCHWING STETTER TIES-UP WITH BHARAT SHELL LIMITED

SCHWING Stetter India Pvt. Ltd (SSIPL), a leading player in the Ready Mix Concrete (RMC) Equipment Industry and Bharat Shell Limited (BSL), manufacturers of quality industrial lubricants have entered a strategic tie-up to offer their customers high quality lubricants to enhance the life of the equipments. Bharat Shell will develop a superior grade of hydraulic oil, exclusively for SCHWING Stetter's equipments for the Indian market.

The new grade hydraulic oil developed by Bharat Shell will be of superior specifications and standards.

Extensive field testing done on SCHWING Stetter's equipments have revealed an enhanced performance by the products. The new grade hydraulic oil is expected to substantially enhance the machine life as compared to the regular oil. "The use of this new lubricant will greatly benefit customers by enhancing the life cycle of the machine. The longer life cycle of the Lubricant results in reduction of oil consumption and enhances the functioning of the equipment." Says, Mr. V. G. Sakthi Kumar VP Marketing, SCHWING Stetter India Private Limited.

Bharat Shell will supply the developed hydraulic oil for the first fill at SCHWING Stetter's factory. The new product will also be marketed by Bharat Shell to all existing and new customers of SCHWING Stetter. SCHWING Stetter and Bharat Shell will jointly educate all customers of SCHWING on the advantages of using Bharat Shell lubricants. Bharat Shell will also offer to the pump owners a unique condition monitoring service, which will help the customers to maintain their pump.

"We are delighted that we share a focus on serving customers with a world leader. The exclusivity of the partnership will better help emphasis the fact that the customer offering is a unique one " said Mr. Utpal Ghosh, VP - B2B, Bharat Shell Limited.

In accordance with the agreement, SCHWING Stetter will promote Bharat Shell on their products and also include the new lubricant in their recommended list, in their product catalogue. The product will be stocked, displayed, distributed and sold by outlets of Bharat Shell to customers, on demand.

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.62.00
UK Pound	1	Rs.102.17
Euro	1	Rs.85.19

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
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	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.