MIRA INFORM REPORT

Report Date :

05.06.2013

IDENTIFICATION DETAILS

Name :	RIECO INDUSTRIES LIMITED [w.e.f. 08-08-1997]
Formerly Known As :	RATHI INDUSTRIAL EQUIPMENT COMPANY LIMITED RATHI INDUSTRIAL EQUIPMENT PRIVATE LIMITED
Registered Office :	1162/2, Shivaji Nagar, Behind Observatory, Pune-411005, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.10.1975
Com. Reg. No.:	11-018631
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U24118MH1975PLC018631
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Air Pollution Control and Size Reduction Equipments.
No. of Employees :	160 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 571000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	October 2011 to March 2012

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

Name :	Mr. Pol
Designation :	Account Department
Contact No.:	91-20-25535384
Date :	04.06.2013

LOCATIONS

Registered / Head Office :	1162/2, Shivaji Nagar, Behind Observatory, Pune-411005, Maharashtra, India
Tel. No.:	91-20-25535384/ 25535215
Fax No.:	91-20-25533229
E-Mail :	rieco@rieco.com dvp@rieco.com
Website :	http://www.rieco.com
Location :	Owned
Factory :	Gat No. 144, Alandi Markal Road, Dhanore, Alandi Devachi, Pune-412105, Maharashtra, India
Tel. No.:	91-2135-305016
Fax No.:	91-2135-305006
Branch Office :	E-1, First Floor, Jhandewala Extension, Near Delhi Press, Rani Jhansi Road, New Delhi-110055, India
Tel. No.:	91-11-23628116/ 23554029
Fax No.:	91-11-23628243
E-Mail :	sales_delhi@rieco.com
Branch Office :	Also Located At: · Mumbai · Chennai · Kolkata · Pune

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Ajay Balkrishna Rathi
Designation :	Managing Director
Address :	60, National Housing Society, Baner Road, Pune-411007, Maharashtra, India
Date of Birth/Age :	28.07.1956
Date of Appointment :	21.07.1991
Din No.:	00018614
Name :	Mr. Narayandas Jagannath Rathi
Designation :	Director
Address :	113/3, Koregaon Park, Lane No. 4-A, Pune-411001, Maharashtra, India
Date of Birth/Age :	18.05.1935
Date of Appointment :	30.09.2004
Din No.:	00018597
Name :	Mr. Kishor Laxminarayan Rathi
Designation :	Director
Address :	C-4, Abhimanshree Society, Pashan Road, Pune-411008, Maharashtra, India
Date of Birth/Age :	27.10.1938
Date of Appointment :	29.09.2003
Din No.:	00018567
Name :	Mr. Pradeep Ramwilas Rathi
Designation :	Director
Address :	2, Boat Club Road, Pune-411001, Maharashtra, India
Date of Birth/Age :	20.05.1953
Date of Appointment :	29.09.2003
Din No.:	00018577
Name :	Mr. Rajesh B. Rathi
Designation :	Director
Address :	94/13/14, Lane No. 11, Prabhat Road, Pune-411004, Maharashtra, India
Date of Birth/Age :	13.11.1968
Date of Appointment :	30.06.2012
Din No.:	00018628

KEY EXECUTIVES

Name :	Mr. Pol
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Narayandas Jagannath Rathi	2485
Kishor Laxminarayan Rathi	52336
Aruna Kishor Rathi	15999
Pradeep Ramwilas Rathi	36774
Kusum Ramvilas Rathi	26668
Ajay Balkrishna Rathi	17610
Rajesh Balkrishna Rathi	40222
Rathi Bros Private Limited, India	22500
Rohit Kishor Rathi	31667
Anuj N. Rathi HUF	170
Balkrishna Rathi Finance Private Limited, India	10000
Anuj Narayandas Rathi	64638
Kusum Balkrishna Rathi	1333
Rahul Pradeep Rathi	43239
Nisha Ajay Rathi	1250
Subhadra Pradeep Rathi	11110
NJR Finance Private Limited, India	20498
PRR Finance Private Limited, India	10000
Laxminarayan Finance Private Limited, India	6666
Ajay Balkrishna Rathi HUF	8883
Archana Anuj Rathi	23332
Deepika Rohit Rathi	13280
Mannan Rathi Trust, India	25168
Sou. Rachana Rathi Family Trust, India	832
Rajesh Balkrishna Rathi HUF	13340
TOTAL	500000

AS ON 29.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Air Pollution Control and Size Reduction Equipments.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Size Reduction	8474 10
Air Pollutions Control	8428 28
PH System	8428 00

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2012]

Particulars	Licensed Capacity	Installed Capacity	Actual Production Nos
Chemical Machinery items, Tonnes	400	400	0
Size Reduction Equipment-Nos	200	200	82
Pneumatic Conveying System	50	50	47
Air Pollution Control Equipment-Nos	860	860	344
Multi Cell Dust Collector	50	50	0
Power Transmission Components	45000	45000	0

NOTE: Installed capacity certified by the director of the company.

GENERAL INFORMATION

Customers :

Others

· Nalco Limited

No. of Employees :

160 [Approximately]

Bankers :

Bank of Maharashtra, Pune Branch, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	2.732	0.000
Intercorporate deposits	107.051	97.785
Loans repayable on demand from banks	246.385	148.878
TOTAL	356.168	246.663

Banking Relations :	--
Auditors :
Name :	A.H. Joshi and Company Chartered Accountants
Address :	1907, Sadashiv Peth, Natu Baug, Pune-411030, Maharashtra, India
PAN No:	AADFA6011E

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

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		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		137.789	103.484	88.527
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		142.789	108.484	93.527
LOAN FUNDS
1] Secured Loans		356.168	246.663	110.029
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		356.168	246.663	110.029
DEFERRED TAX LIABILITIES		2.229	2.423	3.163
TOTAL		501.186	357.570	206.719
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.194	25.185	28.647
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	280.632	221.553	143.109
	Sundry Debtors	599.861	492.433	301.453
	Cash & Bank Balances	10.991	0.750	1.348
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	118.315	107.886	56.127
Total Current Assets		1009.799	822.622	502.037
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	327.627	285.076	113.627
	Other Current Liabilities	200.947	194.605	191.614
	Provisions	6.233	10.556	18.724
Total Current Liabilities		534.807	490.237	323.965
Net Current Assets		474.992	332.385	178.072
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		501.186	357.570	206.719

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1271.783	902.350	694.670
		Other Income	6.277	5.043	1.431
		TOTAL (A)	1278.060	907.393	696.101
Less	EXPENSES
		Cost of materials consumed	876.669	652.112
		Employee benefit expense	93.932	79.258
		Other expenses	261.700	183.522	659.124
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(48.249)	(56.849)
		TOTAL (B)	1184.052	858.043	659.124
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		94.008	49.350	36.977
Less	FINANCIAL EXPENSES (D)		38.145	14.283	8.604
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		55.863	35.067	28.373
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.171	2.940	2.929
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		52.692	32.127	25.444
Less	TAX (H)		17.806	11.360	9.367
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		34.886	20.767	16.077
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		85.634	72.758	63.740
	EXCESS PROVISION OF EARLIER YEARS		0.000	0.000	0.371
Less	APPROPRIATIONS
		Transfer to General Reserve	3.485	2.080	1.600
		Dividend 10% (Last Year @ 100%)	0.500	5.000	5.000
		Tax on Dividend	0.081	0.811	0.830
	BALANCE CARRIED TO THE B/S		116.454	85.634	72.758
	EARNINGS IN FOREIGN CURRENCY		38.235	11.523	20.344
	IMPORTS
		Components & Spares Parts	22.009	10.138	16.245
	Earnings / (Loss) Per Share (Rs.)		105.38	64.25	32.15

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.73	2.29	2.31
Net Profit Margin (PBT/Sales)	(%)	4.14	3.56	3.66
Return on Total Assets (PBT/Total Assets}	(%)	5.09	3.79	4.79
Return on Investment (ROI) (PBT/Networth)		0.37	0.30	0.27
Debt Equity Ratio (Total Debt/Networth)		2.49	2.27	1.17
Current Ratio (Current Asset/Current Liability)		1.89	1.67	1.55

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]	31.03.2010 [Rs. in millions]
Sundry Creditors	327.627	285.076	113.627

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

OUTLOOK FOR FUTURE:

The Engineering Industry has shown upward trend during last three months. The Company has shown considerable increase in the sales during the year. The Company has outlined a series of aggressive marketing measures to increase the sales and outperform the market. The Company also aims to economize the cost of operations to be cost effective and competitive. Barring unforeseen circumstances, company expects better results in the current year.

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.56.64
UK Pound	1	Rs.86.69
Euro	1	Rs.73.97

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.