MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	RECON MACHINE TOOLS PRIVATE LIMITED
Registered Office :	9, Hoota Galli Industrial Area, Off Hunsur Road, Mysore – 570086, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.09.1982
Com. Reg. No.:	08-004934
Capital Investment / Paid-up Capital :	Rs. 0.570 Million
CIN No.: [Company Identification No.]	U27101KA1982PTC004934
TAN No.: [Tax Deduction & Collection Account No.]	BLRR02006E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Plant and Machinery used for Metal Cans, Metal Closures, etc.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba [45]

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

Maximum Credit Limit :	USD 52700
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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 – 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Chawan
Designation :	Accounts Manager
Contact No.:	91-22-26875931
Date :	03.01.2013

LOCATIONS

Registered Office :	9, Hoota Galli Industrial Area, Off Hunsur Road, Mysore – 570086, Karnataka, India
Tel. No.:	91-821-2402441
Fax No.:	Not Available
E-Mail :	rmt@airtelmail.com sales@reconmachine.com rmt@touchtelindia.com
Website :	www.reconmachine.com
Location :	Owned
Branch :	37, Sarvodaya Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-26875931
Fax No.:	91-22-26873739
E-Mail :	sales@reconmachine.com

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Dattatraya Kogga Bantwal

Designation :

Director

Address :

Flat No. 2-A, A – Building, Cresent Co-Operative Housing Society, Pali Hill Road, Mumbai - 400052, Maharashtra, India

Date of Birth/Age :

15.06.1938

Date of Appointment :

04.09.1982

DIN No.:

00221052

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	U29220MH1982PTC026747	RECON DIES AND TOOLS PRIVATE LIMITED	Director	23/03/1982	23/03/1982	Active	NO
2	U92110MH1982PTC026744	PRAKASH MEHRA PICTURES PRIVATE LIMITED	Director	23/03/1982	23/03/1982	Active	NO
3	U27101KA1982PTC004934	RECON MACHINE TOOLS PRIVATE LIMITED	Director	04/09/1982	04/09/1982	Active	NO
4	U28920KA1996PTC019660	PACMAC ENGINEERS PRIVATE LIMITED	Director	23/01/1996	23/01/1996	Active	NO

Name :

Mr. Chandrashekhar Santhur Kambalguttu Rao

Designation :

Director

Address :

604, Sagar Kanya, J P Road, Andheri (West), Mumbai – 400061, Maharashtra, India

Date of Birth/Age :

06.12.1947

Date of Appointment :

04.09.1982

DIN No.:

00221105

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	U92110MH1982PTC026744	PRAKASH MEHRA PICTURES PRIVATE LIMITED	Director	23/03/1982	23/03/1982	Active	NO
2	U29220MH1982PTC026747	RECON DIES AND TOOLS PRIVATE LIMITED	Director	23/03/1982	23/03/1982	Active	NO
3	U27101KA1982PTC004934	RECON MACHINE TOOLS PRIVATE LIMITED	Director	04/09/1982	04/09/1982	Active	NO
4	U28920KA1996PTC019660	PACMAC ENGINEERS PRIVATE LIMITED	Director	23/01/1996	23/01/1996	Active	NO

Name :

Mr. Anantharay Pai

Designation :

Director

Address :

13, Gulab View, Chembur, Mumbai – 400074, Maharashtra, India

Date of Birth/Age :

03.09.1944

Date of Appointment :

04.09.1982

DIN No.:

00307460

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	U29220MH1982PTC026747	RECON DIES AND TOOLS PRIVATE LIMITED	Director	23/03/1982	23/03/1982	Active	NO
2	U92110MH1982PTC026744	PRAKASH MEHRA PICTURES PRIVATE LIMITED	Director	23/03/1982	23/03/1982	Active	NO
3	U27101KA1982PTC004934	RECON MACHINE TOOLS PRIVATE LIMITED	Director	04/09/1982	04/09/1982	Active	NO
4	U28920KA1996PTC019660	PACMAC ENGINEERS PRIVATE LIMITED	Director	23/01/1996	23/01/1996	Active	NO

KEY EXECUTIVES

Name :	Mr. Chawan
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Chandrashekhar Santhur Kambalguttu Rao	1900
Dattatraya Kogga Bantwal	1900
Anantharay Pai	1900
Total	5700

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Plant and Machinery used for Metal Cans, Metal Closures, etc.
Products :	Metal Cans such as Ø General line Cans Ø OTS Cans Ø Shoe polish, Ø Balm tins, 2 piece Cans etc. Metal Closures such as Ø Aluminium PP Caps Ø Vial seals Ø Pull tab seals Ø R.O.Caps, Screwed caps Ø Twist open caps Ø Drum closures
Exports :
Products :	Metal Cans such as Ø General line Cans Ø OTS Cans Ø Shoe polish, Ø Balm tins, 2 piece Cans etc. Metal Closures such as Ø Aluminium PP Caps Ø Vial seals Ø Pull tab seals Ø R.O. Caps, Screwed caps Ø Twist open caps Ø Drum closures
Countries :	Gulf Country
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

40 (Approximately)

Bankers :

Syndicate Bank, Saraswathipuram Branch, 2961/38A, 5th Main, 5th Cross, Saraswathipuram, Mysore - 570009, Karnataka, India (Tel No.: 91-821-2543973/ 2543342)

Facilities :

OD – Rs. 5.000 Millions

Secured Loans	31.03.2012	31.03.2011
Term Loans -From Banks	(Rs. In Millions)
Term Loan from Syndicate Bank	0.072	0.481
Overdraft from Syndicate Bank (Hypothecation of stock, debtors, plant and machinery, land and building and directors personal)	1.313	0.000
Short term loan against FD (secured against Fixed Deposits of the Company with the Bank and Directors personal guarantee)	1.470	0.000
Packing Credit Loan (Hypothecation of stock, debtors, plant and machinery, land and building and directors personal)	1.900	0.000
Total	4.755	0.481

Banking Relations :	--
Auditors :
Name :	B S Ravikumar and Associates Chartered Accountants
Address :	No. 73, 2^nd Floor, Sri Madhvesha Complex, Malai Mahadeshwara Road, Nazarbad, Mysore – 570010, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AADFB1008N
Related Parties :	Ø Recon Dies and Tools Private Limited Ø Decomac Engineers Ø Packmac Engineers Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 100/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5700	Equity Shares	Rs. 100/- each	Rs. 0.570 Million

Reconciliation of paid up share capital

Particulars	No. of shares	Amount in millions
Opening paid up Equity shares capital	5700	0.570
Add: Bonus shares issued	--	--
Closing paid up Equity shares capital	5700	0.570

List of shareholders having 5% or more shares

Name of shareholders	No. of shares	In % of shares
Chandrashekhar Santhur Kambalguttu Rao	1900	33.33
Dattatraya Kogga Bantwal	1900	33.33
Anantharay Pai	1900	33.33

As per the of the company, including its register of members/ shareholders, the above shareholding represents both legal and beneficial ownership of the shares.

Terms / Rights attached to Equity shares

The company has only one class of equity shares having a par value of Rs. 100/- per shares. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after payment of all preferential amounts. The distribution to the equity shareholders will be in proportion to the number of equity shares held by the shareholders.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.570	0.570	0.570
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.621	12.285	11.687
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.191	12.855	12.257
LOAN FUNDS
1] Secured Loans		4.755	0.481	0.989
2] Unsecured Loans		0.000	0.000	0.043
TOTAL BORROWING		4.755	0.481	1.032
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		17.946	13.336	13.289
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.468	3.933	4.557
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.018	0.018	0.018
DEFERRED TAX ASSETS		0.239	0.137	0.044
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.043	15.143	12.767
	Sundry Debtors	10.433	4.886	7.015
	Cash & Bank Balances	3.632	4.010	4.949
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.131	2.012	1.300
Total Current Assets		31.239	26.051	26.031
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.443	4.137	6.897
	Other Current Liabilities	10.089	11.842	10.464
	Provisions	2.486	0.824	0.000
Total Current Liabilities		17.018	16.803	17.361
Net Current Assets		14.221	9.248	8.670
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17.946	13.336	13.289

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	40.332	30.640	32.092
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	38.034	29.073	29.918
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.298	1.567	2.174
Less	FINANCIAL EXPENSES (D)		0.903	0.106	0.346
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.395	1.461	1.828
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.574	0.669	0.791
	PROFIT BEFORE TAX (E-F) (G)		0.821	0.792	1.037
Less	TAX (H)		0.486	0.194	0.379
	PROFIT AFTER TAX (G-H) (I)		0.335	0.598	0.658
	EARNINGS IN FOREIGN CURRENCY
		Goods Traded	1.475	2.321
		Goods Manufactured	10.220	5.848
	TOTAL EARNINGS		11.695	8.169	4.291
	Earnings Per Share (Rs.)		58.77	104.91	115.51

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.83	1.95	2.05
Return on Total Assets (PBT/Total Assets}	(%)	2.37	2.64	3.39
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.08
Debt Equity Ratio (Total Liability/Networth)		1.65	1.34	1.50
Current Ratio (Current Asset/Current Liability)		1.84	1.55	1.50

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FIXED ASSETS:

Ø Land

Ø Borewell

Ø Industrial Gala – Mumbai

Ø Factory / Office Building

Ø Building

Ø Plant and Machinery

Ø Furniture and Fixtures

Ø Spares and Accessories

Ø Computer

Ø Electrical Installations

Ø Vehicles

Ø Technical Know-how

Ø Motor Car

Ø Bicycle

Ø Air Conditioner

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. 54.98
UK Pound	1	Rs. 88.11
Euro	1	Rs. 71.67

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.