MIRA INFORM REPORT

Report Date :

07.06.2013

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) :	31.03.2012
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 (48)

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

Maximum Credit Limit :	USD 1650000
Status :	Satisfactory
Payment Behaviour :	Usually correct
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. Financially company seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB (Long Term Bank Facilities)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation. It carry moderate credit risk.
Date	September 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 DENIED BY

Name :	Mr. Pushkar Deodhar
Designation :	Assistant General Manager Finance
Contact No.:	91-20-22922222
Date :	06.06.2013

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
Email:	cranes@emech.ae

DIRECTORS

As on: 05.07.2012

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: 05.07.2012

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: 05.07.2012

EQUITY SHARES BREAK UP

Category	Percentage
Venture Capital	2.84
Directors / Relatives of Directors	92.14
Bodies corporate (not mentioned above)	5.02
Total	100.00

BUSINESS DETAILS

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

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Cranes	Nos.	519
Hoists	Nos.	80
Spares	Nos.	28315

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· State Bank of India, Industrial Finance Branch, 2^nd 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 :

Secured Loans	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Fully convertible debentures others	400.000	230.000
Rupee term loans from banks	0.000	17.123
Other loans and advances	1.136	0.102
Working capital loans from banks	0.000	197.325
Loans repayable on demand from others	226.854	220.429
Total	627.990	664.979

Banking Relations :	--
Auditors :
Name :	B K Khare and Company Chartered Accountants
Address :	Prabhat Road, Erandwane, Pune, Maharashtra, India
PAN No.:	AAAFB0265E
Subsidiaries :	· Cranedge India Private Limited CIN No.: U74990PN2009PTC139931 · Electromech Overseas
Fellow Subsidiary Company :	· Electromech FZE
Associate Companies :	· Electromech Engineers · Electromech Maritech India Private Limited CIN No.: U74140PN2008PTC131227 · Anay Infra Projects Private Limited CIN No.: U45200MH2010PTC200029 · Rajapur Shipyard Private Limited CIN No.: U35110PN2008PTC131226 · Tushar Constructions

CAPITAL STRUCTURE

As on: 31.03.2012

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		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS.
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		364.790	306.510	290.395
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		414.790	356.510	340.395
LOAN FUNDS
1] Secured Loans		627.990	664.979	593.318
2] Unsecured Loans		0.000	0.000	21.223
TOTAL BORROWING		627.990	664.979	614.541
DEFERRED TAX LIABILITIES		27.144	24.028	14.462
TOTAL		1069.924	1045.517	969.398
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		493.340	419.846	371.034
Capital work-in-progress		8.968	63.374	5.337
INVESTMENT		117.233	21.481	16.581
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	281.364	353.107	358.175
	Sundry Debtors	613.933	549.809	543.260
	Cash & Bank Balances	54.490	60.987	40.400
	Other Current Assets	77.757	69.855	0.000
	Loans & Advances	44.556	42.053	171.175
Total Current Assets		1072.100	1075.811	1113.010
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	295.173	330.586	210.311
	Current Liabilities	306.121	198.277	268.259
	Provisions	20.423	6.132	58.076
Total Current Liabilities		621.717	534.995	536.646
Net Current Assets		450.383	540.816	576.364
MISCELLANEOUS EXPENSES		0.000	0.000	0.082
TOTAL		1069.924	1045.517	969.398

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales	1655.000	1651.000	1393.924
		Other Income	NA	NA
		TOTAL (A)	NA	NA	1393.924
Less	EXPENSES
		Cost of Materials			811.281
		Manufacturing Expenses			97.655
		Selling and Distribution Expenses			87.858
		Office Expenses			109.175
		Administrative Expenses			60.624
		Miscellaneous Expenses written off			0.016
		TOTAL (B)	NA	NA	1166.609
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				227.315
Less	FINANCIAL EXPENSES (D)				61.898
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		134.100	57.200	165.417
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.500	15.200	9.846
	PROFIT BEFORE TAX (E-F) (G)		113.600	42.000	155.571
Less	TAX (H)		38.000	16.000	48.782
	PROFIT AFTER TAX (G-H) (I)		75.600	26.000	106.789
Less	PRIOR PERIOD ADJUSTMENTS		0.000	7.500	4.118
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		215.100	203.900	125.833
	APPROPRIATIONS
		Transfer to General Reserve	8.000	5.000	10.000
		Tax on Dividend	2.100	0.300	2.076
		Proposed Equity Dividend	12.500	2.000	12.500
	BALANCE CARRIED TO THE B/S		268.100	215.100	203.928
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	39.763	87.123	27.480
	TOTAL EARNINGS		39.763	87.123	27.480
	IMPORTS
		Crane Kits			93.600
		Stores & Spares			3.700
		Capital Goods			0.400
	TOTAL IMPORTS		237.344	178.035	97.700
	Earnings Per Share (Rs.)		15.12	3.69	20.53

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	7.66
Net Profit Margin (PBT/Sales)	(%)	6.86	2.54	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.26	2.81	10.48
Return on Investment (ROI) (PBT/Networth)		0.27	0.12	0.45
Debt Equity Ratio (Total Debt/Networth)		1.51	1.87	1.81
Current Ratio (Current Asset/Current Liability)		1.72	2.01	2.07

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
Sundry creditors	295.173	330.586	210.311
Total	295.173	330.586	210.311

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	Yes
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 two years	Yes
12]	Profitability for last two 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	No
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	Yes

NOTE:

The registered office address of the company has been shifted from “401-402, Abhijeet Court, Bhandarkar Road, Erandawana. Pune – 411004, Maharashtra, India” to the “Pralhad Arcade, Plot No. 73/2/1, Bhakti Nagar, Off Law College Road, Erndawana, Pune – 411004, Maharashtra, India” w.e.f. 01.09.2008. The registered office address of the company again 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

THE YEAR IN RETROSPECT

FY12 was an interesting year. The year started off on a great note with distinct signs of optimism being reflected in the overall economy leading to an increase of enquiry flow as well as increased order finalization in their product space. However, from the end of August 2011, the trend reversed. On the background of the Euro crisis, the overall financial scenario turned negative and a lot of pessimism again crept back into the economy.

On the background of performance of the company in FY11, the company had made all plans for delivering a much improved performance in FY12, especially on the profitability front. Hence as a policy, they decided to focus on the gross profit margins that they were getting on each order and became selective in order acceptance. They gracefully walked away from orders where they came across suicidal prices being offered by the competition and bagged orders where they had a chance of making reasonable profits. This strategy paid off! Hence for practically the same topline of net sales of Rs. 1655.000 Millions in FY12 as compared with net sales of Rs. 1651.000 Millions in FY11, they managed to increase their net profit from Rs. 18.500 Millions to Rs. 75.600 Millions on a standalone basis.

In retrospect, their strategy proved to be extremely sound as they realized that majority of the competition that had resorted to suicidal pricing had indeed suffered badly in FY12.

The increased profitability not only came from being more selective about orders but also on account of sustained cost management exercises within the company. All the departmental heads put their heads together and delivered substantial cost reductions. They will be carrying forward this cost rationalization momentum gathered in FY12 into the subsequent years as well.

They continued to maintain their lead in terms of being the largest manufacturer of overhead cranes in India by manufacturing in excess of 650 cranes this year as well.

CONTINGENT LIABILITY NOT PROVIDED FOR:

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
Guarantees given by Company’s Bankers on behalf of the Company, towards performance and other matters	224.145	175.712

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U31109MH1996PTC099346
Name of the company	ELECTROMECH MATERIALS HANDLING SYSTEMS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1, Gate No. 316, At P Kasar Amboli, Taluka Mulshi, District Pune – 412111, Maharashtra, India E-mail : cranes@emech.in
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Others (Current Assets and Residual movable fixed assets)
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India E-mail: balakrishna.kuckian@kotak.com
Nature of instrument creating charge	Deed of Hypothecation.
Date of instrument Creating the charge	09.07.2012
Amount secured by the charge	Rs.150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per the terms of Bank's sanction letter. Terms of repayment As per the terms of Bank's sanction letter. Margin As per the terms of Bank's sanction letter. Extent and operation of the charge 1. First Pari passu charge by way of Hypothecation on all present and future Current assets of the Borrower, to secure repayment of financial facilities granted by KMBL to the Borrower. 2. First Pari passu charge by way of Hypothecation on Residual movable fixed assets (i.e net of the existing term loan outstanding with SBI as on date) of the Borrower, to secure repayment of financial facilities granted by the KMBL to the Borrower.
Short particulars of the property charged (Including location of the property)	Book debts, receivables, outstanding moneys, claims, demands bills, contracts, engagements and securities belonging to or held by the borrower stocks of raw materials, finished and semi-finished goods, goods in process and consumable stores, which are now or hereafter be lying or stored in or about the factories, godowns etc. Moveable plant and machinery, equipment, appliances, furniture, vehicles, machinery spares and stores, tools and accessories, whether or not installed; and related moveables in the course of transit or delivery, whether now belonging or which may hereafter belong to the Borrower, more specifically described in 2nd and 3rd sch to the Deed of Hypothecation

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office equipment

Intangible Assets

· Computer Software

AS PER WEBSITE DETAILS:

PRESS RELEASE

MOTILAL OSWAL'S INDIA BUSINESS EXCELLENCE FUND TO INVEST RS.450.000 MILLIONS IN ELECTROMECH MATERIAL

Funds managed and advised by Motilal Oswal Private Equity Advisors Private Limited (MOPE), have committed to invest Rs. 450.000 millions in ElectroMech Material Handling Systems (India) Private Limited, the largest manufacturer of work shop duty cranes in India and which offers probably the widest range of product spectrum in the cranes industry.

ElectroMech is engaged in the business of design, engineering, manufacturing and installations of Electric Overhead Travelling (EOT) Cranes, Electric Wire Rope Hoists, Jib Cranes and Gantry Cranes. Over the past 30 years of its existence, company has supplied in excess of 4,000 cranes.

ElectroMech has tie-ups with global leaders in the industry like ABUS and Stahl (EX) from Germany, Sibcranex from Russia, and Shuttlelift from USA; to bring in technology, diversify its product offering and increase customer reach. Since 2010, company has also started providing complete after-market sales and services required for cranes, hoists and related material handling systems of any make through its subsidiary Cranedge.

ElectroMech is led by its young and dynamic MD Tushar Mehendale. Tushar, a second generation entrepreneur, stepped into current role at a young age of 24 in 2000. Over the last ten years he has catapulted ElectroMech into one of the largest players in India in terms of number of cranes produced and sold.

According to Mr. Raamdeo Agrawal, Chairman of MOPE, “Over the past 7-8 years, the gross capital formation in the economy as a percentage of GDP has increased from 25% to 36%. With GDP in nominal terms expected to grow at 13% -14% coupled with investment of US$ 1 trillion infrastructure spending in the 12th 5-year plan, this would result in substantial demand for all products and the services required for the development and maintenance of infrastructure. This provides a very strong opportunity for companies like ElectroMechwith a credible brand - built over the last 30 years of its existence, strong management team and a world class manufacturing facility.”

Talking about their decision to invest in ElectroMech he further adds, “We have analyzed a very strong inherent value in the company in the long run. One of our business evaluation tools measures if the company has consistently performed over time vs. its peers. We have realized that ElectroMech’s management is intelligent with business widening prospects and is focused to sustain a long-term competitive advantage.Thus we are optimistic about the future because of the strength of the company.”

“ElectroMech has been able to generate a strong brand recall in a highly commoditized product like cranes. This has helped the company to not only diversify its customer base but also helped in approaching customers for its services business.”

According to Mr. Tushar Mehendale, Managing Director of ElectroMech, “ElectroMech’s vision is to be the largest industrial crane manufacturer in South Asia in the next 5 years in terms of volumes as well as value. As a result, ElectroMech has aggressive plans to become a Rs 7 billion company over the next 5 – 6 years. The growth would come from expansion of product portfolio and entry into newer geographies like Africa, ME, etc.”

“The investment banking firm Innoven, led by Mr. Pradip Dubhashi and Ms. Madhu Dubhashi; has advised us in evaluating our options to make the right decision. ElectroMech has partnered with MOPE considering the track record of the promoters behind the fund and most importantly their ability to understand the unique features pertaining to India and the Indian markets.”

About ElectroMech

ElectroMech is a leading brand in engineering, manufacturing and servicing Industrial Overhead Cranes, Gantry Cranes, Electric wire rope hoists and customized material handling solutions. ElectroMech’s strong tradition of design and manufacturing capability coupled with its tie-ups with ABUS and Stahl (EX) from Germany, Sibcranex of Russia and Shuttlelift of USA, enables it to provide world class hoisting solutions across several industry verticals.

MOTILAL OSWAL PE INVESTS RS.450.000 MILLIONS IN ELECTROMECH MATERIAL

Friday, March 11, 2011

Motilal Oswal Private Equity Advisors has announced its second deal this week with a Rs.450.000 Millions investment in ElectroMech Material Handling Systems (India) Private Limited.

Motilal Oswal Private Equity Advisors has announced its second deal this week with a Rs.450.000 Millions investment in ElectroMech Material Handling Systems (India) Private Limited, one of the largest manufacturer of work shop duty cranes in India. ElectroMech is engaged in the business of design, engineering, manufacturing and installations of Electric Overhead Travelling (EOT) Cranes, Electric Wire Rope Hoists, Jib Cranes and Gantry Cranes. Pune-based ElectroMech has supplied in excess of 4,000 cranes.

Earlier this week, Motilal Oswal PE along with IDFC's Hybrid Infrastructure Portfolio invested Rs.800.000 Millions in GR Infraprojects Limited, an integrated road infrastructure company from Rajasthan.

ElectroMech has tie-ups with global players like ABUS and Stahl (EX) from Germany, Sibcranex from Russia, and Shuttlelift from USA for technology and increasing customer reach. It has also started providing complete after-market sales and services required for cranes, hoists and related material handling systems through its subsidiary Cranedge.

ElectroMech has its main facility in Pune spread over 18 acres of land with a new facility coming up at Sriperembudur near Chennai to cater exclusively to the markets in Southern India.

According to an ICRA filing dated February '10, ElectroMech reported profit after tax (PAT) of Rs.110.600 Millions on an operating income of Rs.1376.500 Millions in FY 2009 as against PAT of Rs.74.800 Millions on an operating income of Rs.710.600 Millions in FY 2008. In H1, FY 2010, the company reported PAT of Rs.54.000 Millions on an operating income of Rs.665.000 Millions.

Over the past 7-8 years, the gross capital formation in the economy as a percentage of GDP has increased from 25% to 36%. With GDP in nominal terms expected to grow at 13% -14% coupled with investment of US$ 1 trillion infrastructure spending in the 12th 5-year plan, this would result in substantial demand for all products and the services required for the development and maintenance of infrastructure. This provides a very strong opportunity for companies like ElectroMech with a credible brand - built over the last 30 years of its existence, strong management team and a world class manufacturing facility, said

Raamdeo Agrawal, Chairman of Motilal Oswal PE.

ElectroMechs vision is to be the largest industrial crane manufacturer in South Asia in the next 5 years in terms of volumes as well as value. As a result, ElectroMech has aggressive plans to become a Rs.7 billion company over the next 5 6 years. The growth would come from expansion of product portfolio and entry into newer geographies like Africa, ME, etc, said Tushar Mehendale, Managing Director of ElectroMech.

Motilal Oswal Private Equity is currently investing from its $125 million India Business Excellence Fund (IBEF), and is raising a $200 million second fund. It has previously invested in companies like Cremica Foods, Time Technoplast, IMP Powers, RT Outsourcing Services, Effort BPO, Parag Milk and Milk Products, Power Mech Projects and Resurgere Mines and Minerals India.

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.56.87
UK Pound	1	Rs.87.65
Euro	1	Rs.74.52

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

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	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.