MIRA INFORM REPORT

Report Date :

14.09.2013

IDENTIFICATION DETAILS

Name :

MECGALE PNEUMATICS PRIVATE LIMITED

Registered Office :

N-65, MIDC Industrial Area, Hingna, Nagpur – 440016, Maharashtra

Country :

India

Financials (as on) :

31.03.2012

Date of Incorporation :

18.02.2003

Com. Reg. No.:

11-139205

Capital Investment / Paid-up Capital :

Rs. 1.753 Millions

CIN No.:

[Company Identification No.]

U74999MH2003PTC139205

TAN No.:

[Tax Deduction & Collection Account No.]

NGPM04080G

PAN No.:

[Permanent Account No.]

AADCM7418C

Legal Form :

Private Limited Liability Company

Line of Business :

Manufacturer and Exporter of Pneumatic Conveying Systems, Ash Handling Systems, Raw water intake equipments, Process equipments, Pneumatic Conveying System, etc.

No. of Employees :

Not Available

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 740000
Status :	Satisfactory
Payment Behaviour :	Usuall correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Overall financial position of the company appears to be decent. Trade relation are fair. Business is active. Payment terms are usually correct. The company can be considered for business dealing at usual trade terms and condition.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : “BBB”
Rating Explanation	Moderate credit quality and average credit risk.
Date	25.03.2013

Rating Agency Name	CRISIL
Rating	Short term rating : “A3+”
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	25.03.2013

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.

LOCATIONS

Registered Office :	N-65, MIDC Industrial Area, Hingna, Nagpur – 440016, Maharashtra, India
Tel. No. :	91-7104-236873 / 235271 / 645125 / 645916
Fax No. :	91-7104-235496
E-Mail :	info@mecgale.com
Website :	www.mecgale.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Tapas Umapada Sarkar

Designation :

Managing director

Address :

Flat No.: 7, Sameer Apartment, Byramji Town, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

31.12.1954

Qualification :

BE

Experience :

33 Years

Date of Appointment :

18.02.2003

DIN No. :

00250348

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999MH2003PTC139205	MECGALE PNEUMATICS PRIVATE LIMITED	Managing director	18/02/2003	18/02/2003	-	Active	NO
2	U28112MH2008PTC180527	ACE CONVEYORS PRIVATE LIMITED	Director	27/03/2008	27/03/2008	-	Active	NO

Name :

Mr. Taritkumar Umapada Sarkar

Designation :

Director

Address :

Flat No.: 7, Sameer Apartment, Byramji Town, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

09.01.1961

Qualification :

Master Marine

Experience :

32 Years

Date of Appointment :

18.02.2003

DIN No. :

00250402

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999MH2003PTC139205	MECGALE PNEUMATICS PRIVATE LIMITED	Director	18/02/2003	18/02/2003	-	Active	NO
2	U29248MH2012PTC237007	MECGALE AUTOMATION PRIVATE LIMITED	Director	19/10/2012	19/10/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Sarkar Umapada Tapas	80202
Sarkar Umapada Taritkumar	86191
Sarkar Baishnabcharan Arunkumar	4887
Sarkar Baishnabcharan Alakkumar	4050
Total	175330

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pneumatic Conveying Systems, Ash Handling Systems, Raw water intake equipments, Process equipments, Pneumatic Conveying System, etc.

Products :

· Pneumatic Conveying Systems · Ash Handling Systems · Raw water intake equipments · Process equipments · Technological structures · Powercon Dense Phase Conveying System · Controlcon Dense Phase Conveying System · Unicon Dense Phase Conveying System · Traveling Water Screen, Stop Log Gate · Steel Trash Rack · High Concentration Slurry Disposal System (HCSD) · Belt Conveyor · Bucket Elevator · Screw Conveyor · Clariflocculator · Material Feeding Arrangements

GENERAL INFORMATION

Customer :

· Nuclear Power Corporation of India Limited

· Steel Authority Of India Limited

· Rourkella Steel Plant

· Tata Metaliks Limited

· Usha Martin Limited

· Orissa Sponge Iron Limited

· Sunflag

· Shree Rangraj Ispat

· Lafarge India Private Limited

· Gujarat Ambuja Limited

· India Cements Limited

· Chettinad Cements Limited

· Zuari Cements Limited

No. of Employees :

Not Available

Bankers :

· State Bank of India, Hingna Industrial Estate (Nagpur) Branch, M.I.D.C. Area, Plot No. X-43, Nagpur - 440016, Maharashtra, India

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

· State Bank of India, SMECCC Branch, 128A, Shraddhanand Peth, Nagpur - 440022, Maharashtra, India

· ICICI Bank Limited

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
From Banks (Loans are taken from SBI, ICICI Bank, TATA Capital Limited and HDFC Bank)	12.769	13.931
SHORT TERM BORROWINGS
SBI Cash Credit	5.299	15.335
Total	18.068	29.266

Note:

Working Capital loans are secured by hypothecation of entire stocks, raw material, stock in process, finished goods, consumables, stores and spares, book debts, outstanding money receivables, entire current asset and All Fixed Asstes of company.

CC is payabale on demand.

Banking Relations :	--
Financial Institution :	TATA Capital Limited
Auditors :
Name :	Mahesh Rathi and Company Chartered Accountants
Address :	101/102/105/111 A, Lokmat Bhawan, Wardha Road, Nagpur – 440012, Maharashtra, India
Tel. No. :	91-712-2437395
Fax No. :	91-712-2438543
PAN No. :	AAGFM2740R
Company in which KMP / Relatives of KMP can exercise significant influence :	· Ace Conveyors Private Limited · NCP Services

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
175330	Equity Shares	Rs.10/- each	Rs. 1.753 Millions

Note: Equity Shares has only one class of Equity Shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to recieve the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.753	1.753
(b) Reserves & Surplus	184.319	125.047
(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)	186.072	126.800
(3) Non-Current Liabilities
(a) long-term borrowings	21.727	14.735
(b) Deferred tax liabilities (Net)	0.182	1.037
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	2.044	1.523
Total Non-current Liabilities (3)	23.953	17.295
(4) Current Liabilities
(a) Short term borrowings	5.299	15.336
(b) Trade payables	109.437	144.377
(c) Other current liabilities	91.597	74.474
(d) Short-term provisions	21.056	19.726
Total Current Liabilities (4)	227.389	253.913
TOTAL	437.414	398.008
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	66.628	51.557
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2.294	1.773
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.559	1.309
(e) Other Non-current assets	2.500	2.500
Total Non-Current Assets	72.981	57.139
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	23.714	25.956
(c) Trade receivables	297.096	286.077
(d) Cash and cash equivalents	30.382	18.394
(e) Short-term loans and advances	7.124	7.616
(f) Other current assets	6.117	2.826
Total Current Assets	364.433	340.869
TOTAL	437.414	398.008

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.753
2] Share Application Money		0.000
3] Reserves & Surplus		75.624
4] (Accumulated Losses)		0.000
NETWORTH		76.377
LOAN FUNDS
1] Secured Loans		11.602
2] Unsecured Loans		0.590
TOTAL BORROWING		12.192
DEFERRED TAX LIABILITIES		0.412
TOTAL		88.981
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.431
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.345
	Sundry Debtors	156.278
	Cash & Bank Balances	2.168
	Other Current Assets	0.000
	Loans & Advances	15.774
Total Current Assets		181.565
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	85.561
	Other Current Liabilities	21.159
	Provisions	23.295
Total Current Liabilities		130.015
Net Current Assets		51.550
MISCELLANEOUS EXPENSES		0.000
TOTAL		88.981

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	782.624	588.139	395.313
Less	EXPENSES
		TOTAL (B)	686.722	520.830	342.752
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		95.902	67.309	52.561
Less	FINANCIAL EXPENSES (D)		3.048	1.420	0.965
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		92.854	65.889	51.596
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.057	4.408	2.935
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		86.797	61.481	48.661
Less	TAX (H)		27.355	21.049	17.242
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		59.442	40.432	31.419
	EARNINGS IN FOREIGN CURRENCY		47800 (US $)	6469 (US $)	218222 (US $)
	Earnings / (Loss) Per Share (Rs.)		339.03	230.61	417.08

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.60	6.87	7.95
Return on Total Assets (PBT/Total Assets}	(%)	19.95	15.52	12.28
Return on Investment (ROI) (PBT/Networth)		0.47	0.48	0.64
Debt Equity Ratio (Total Debt/Networth)		0.15	0.24	0.16
Current Ratio (Current Asset/Current Liability)		1.60	1.34	1.40

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
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	10421467	12/04/2013	1,098,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B73678245
2	90345818	22/09/2011 *	193,000,000.00	STATE BANK OF INDIA	HINGNA INDUSTRIAL ESTATE (NAGPUR) BRANCH, M.I.D.C. AREA, PLOT NO. X-43, NAGPUR - 440016, MAHARASHTRA, INDIA	B23203524
3	90347047	07/03/2006 *	4,800,000.00	STATE BANK OF INDIA	HINGNA INDUSTRIAL ESTATE (NAGPUR) BRANCH, M.I.D.C. AREA, PLOT NO. X-43, NAGPUR - 440016, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWING
From Other Loan from Related Party	8.958	0.805
Total	8.958	0.805

FIXED ASSETS

· Land

· Office Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Computer (NCP)

· Vehicles

· Vehicle (NCP)

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.63.79
UK Pound	1	Rs.100.70
Euro	1	Rs.84.67

INFORMATION DETAILS

Report Prepared by :

MRI

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	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	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.