MIRA INFORM REPORT

Report No. :	318599
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :		ROTOMAG MOTORS AND CONTROLS PRIVATE LIMITED
Registered Office :		Plot No. 2102/ 3 and 4, GIDC Estate, Vithal Udyognagar, Anand – 388121, Gujarat
Tel. No.:	91-2692-236409
Country :		India
Financials (as on) :		31.03.2014
Date of Incorporation :		24.08.1993
Com. Reg. No.:		04-020063
Capital Investment / Paid-up Capital :		Rs. 26.242 Million
CIN No.: [Company Identification No.]		U34100GJ1993PTC020063
TAN No.: [Tax Deduction & Collection Account No.]		BRDR00897B
PAN No.: [Permanent Account No.]		AAACR9061K
Legal Form :		Private Limited Liability Company
Line of Business :		Manufacturer of Permanent Magnet D.C. motors, Wound field D.C motors, Gear Motors, Battery Operated D.C. Motors, Speed Reducers and Custom PMDC motors.
No. of Employees :		Not Divulged

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 440000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The management has witnessed significant increase in its turnover and profit margin during FY2014. The company’s profit margin grew from 3.5% in FY2013 to 11% in FY2014. Available information indicates satisfactory financial position of the company. However, the company has huge receivables which may come as a threat to the liquidity profile of the company. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank facilities = BB+
Rating Explanation	Inadequate credit quality and high credit risk.
Date	April 09, 2015

Rating Agency Name	CARE
Rating	Short term Bank facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 09, 2015

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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Dhaval
Designation :	Accounts Department
Contact No.:	91-2692-236005
Date :	22.04.2015

LOCATIONS

Registered Office/ Factory :	Plot No. 2102/ 3 and 4, GIDC Estate, Vithal Udyognagar, Anand – 388121, Gujarat, India
Tel. No.:	91-2692-236409/ 236005
Fax No.:	91-2692-235209
E-Mail :	mail@rotomag.com
Website :	http://www.rotomag.com
Branch Offices :	Located at: · Vadodara · Ahmedabad

DIRECTORS

AS ON 11.09.2014

Name :

Mr. Umesh Mohan Balani

Designation :

Director

Address :

Priya Bunglow, Opposite M.B. Patel College, Nana Bazar, Vallabh Vidyanagar - 388120, Gujarat, India

Date of Birth/Age :

19.07.1967

Date of Appointment :

24.08.1993

DIN No.:

00273387

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	U34100GJ1993PTC020063	ROTOMAG MOTORS AND CONTROLS PRIVATE LIMITED	Director	24-08-1993	24-08-1993	Active	NO
2	U31103GJ2006PLC048638	ROTOMOTIVE POWERDRIVES INDIA LIMITED	Director	06-07-2006	06-07-2006	Active	NO
3	U31101GJ2014PTC078331	MAGTOR SERVOMOTION PRIVATE LIMITED	Director	20-01-2014	20-01-2014	Active	NO

Name :

Kamla Mohan Balani

Designation :

Director

Address :

Priya Bunglow, Opposite M.B. Patel College of Education, Vallabh Vidyanagar - 388120, Gujarat, India

Date of Birth/Age :

31.08.1940

Date of Appointment :

15.08.2003

DIN No.:

00451878

Name :

Mrs. Neelam Umesh Balani

Designation :

Director

Address :

Priya Bunglow, Opposite M.B. Patel College of Education, Vallabh Vidyanagar - 388120, Gujarat, India

Date of Birth/Age :

21.02.1966

Date of Appointment :

30.09.2008

DIN No.:

02260056

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	U34100GJ1993PTC020063	ROTOMAG MOTORS AND CONTROLS PRIVATE LIMITED	Director	30-09-2008	01-07-2008	Active	NO

KEY EXECUTIVES

Name :	Mr. Dhaval
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 11.09.2014

Names of Shareholders	No. of Shares
Umesh Mohan Balani	1441760
Kamla Mohan Balani	239420
Priya Mohan Balani	274183
Tushar Harshadbhai Patel	77700
Aparna Tushar Patel	20
Neelam Umesh Balani	350616
Niranjan Nanikram Balani	4
Pooja Tushar Balani	80163
Siddharth Balani	80165
Anjali Umesh Balani	80165
Total	2624196

AS ON 11.09.2014

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Permanent Magnet D.C. motors, Wound field D.C motors, Gear Motors, Battery Operated D.C. Motors, Speed Reducers and Custom PMDC motors.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Not Divulged
Countries :	Not Divulged
Imports :
Products :	Not Divulged
Countries :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Bank of Baroda

Nana Bazar, Opposite Nalini College, Vallabh Vidyanagar - 388120, Gujarat, India

· State Bank of India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
From Banks	10.217	16.770
SHORT TERM BORROWINGS
From banks Bank of Baroda CC	54.057	19.071
Bank of Baroda OD	28.131	19.353
Total	92.405	55.194

Banking Relations :	--
Auditors :
Name :	Kiran Patel and Company Chartered Accountants
Address :	3rd Floor, Blue Corridor, D Z Patel School, 80 Ft. Road, Anand – 388001, Gujarat, India
Telefax :	91-2692-246701/ 247701/ 249701
E-Mail :	info@kiranpatelco.com
Income-tax PAN of auditor or auditor's firm :	AACFK7514M
Associates :	· Rotomotive Powerdrives India Limited · Hi-Eff Pumps · Magtor Servomotion Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs. 10/- each	Rs. 30.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,624,196	Equity Shares	Rs. 10/- each	Rs. 26.242 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	26.242	26.242	26.242
(b) Reserves & Surplus	128.563	96.399	90.366
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	154.805	122.641	116.608
(3) Non-Current Liabilities
(a) Long-term borrowings	10.217	16.770	13.032
(b) Deferred tax liabilities (Net)	1.588	0.830	0.487
(c) Other long term liabilities	10.927	0.725	0.128
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	22.732	18.325	13.647
(4) Current Liabilities
(a) Short term borrowings	82.188	39.448	43.818
(b) Trade payables	38.532	40.146	25.721
(c) Other current liabilities	8.395	6.562	8.241
(d) Short-term provisions	11.921	2.284	2.478
Total Current Liabilities (4)	141.036	88.440	80.258
TOTAL	318.573	229.406	210.513
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.778	46.756	48.152
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	42.384	21.952	21.018
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	64.028	64.265	58.801
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	164.190	132.973	127.971
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	15.559	6.696	6.498
(c) Trade receivables	100.026	43.040	44.687
(d) Cash and cash equivalents	32.032	38.283	24.129
(e) Short-term loans and advances	0.175	0.138	0.362
(f) Other current assets	6.591	8.276	6.866
Total Current Assets	154.383	96.433	82.542
TOTAL	318.573	229.406	210.513

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Turnover	282.270	170.202	NA
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		122.965	18.478	29.570
Less/ Add	DEPRECIATION/ AMORTISATION		74.658	6.902	6.230
	PROFIT BEFORE TAX		48.307	11.576	23.340
Less	TAX		16.143	5.543	7.209
	PROFIT AFTER TAX		32.164	6.033	16.131
	EARNINGS IN FOREIGN CURRENCY
		Sales earned	79.136	82.569
		Purchase remitted	42.329	21.255
	TOTAL EARNINGS		121.465	103.824	NA
	IMPORTS
		Raw Materials	42.329	21.255	NA
	Earnings Per Share (Rs.)		12.26	2.30	6.65

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	11.39	3.54	NA
Return on Total Assets (PBT/Total Assets}	(%)	17.49	5.58	12.32
Return on Investment (ROI) (PBT/Networth)		0.31	0.09	0.20
Debt Equity Ratio (Total Debt/Networth)		0.60	0.46	0.49
Current Ratio (Current Asset/Current Liability)		1.09	1.09	1.03

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	26.242	26.242	26.242
Reserves & Surplus	90.366	96.399	128.563
Net worth	116.608	122.641	154.805
Long-term borrowings	13.032	16.770	10.217
Short term borrowings	43.818	39.448	82.188
Total borrowings	56.850	56.218	92.405
Debt/Equity ratio	0.488	0.458	0.597

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Turnover	170.202	282.270
		65.844

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Turnover	170.202	282.270
Profit	6.033	32.164
	3.54%	11.39%

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two 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	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	10558347	02/03/2015	1,800,000.00	STATE BANK OF INDIA	RASMECCC, V-SQUARE BUILDING, BHAIKAKA STATUE, VALLABH VIDYA NAGAR, GUJARAT - 388120, INDIA	C48536445
2	10539850	11/12/2014	932,000.00	STATE BANK OF INDIA	RASME CITY CREDIT CENTER, V SQUARE 2ND FLOOR, NEAR BHAIKAKA STATUE, GUJARAT - 388120, INDIA	C38770350
3	10513677	14/07/2014	565,000.00	STATE BANK OF INDIA	RASME CITY CREDIT CENTER, V SQUARE, 2ND FLOOR, NEAR BHAIKAKA STATUE, V V NAGAR, GUJARAT - 388120, INDIA	C15552581
4	90096752	03/01/2014 *	135,800,000.00	BANK OF BARODA	NANA BAZAR, OPP. NALINI COLLEGE, VALLABH VIDYANAGAR, GUJARAT - 388120, INDIA	B94819364
5	90099455	01/01/2014 *	135,800,000.00	BANK OF BARODA	NANA BAZAR, OPP. NALINI ARTS COLLEGE, VALLABH VIDYANAGAR, GUJARAT - 388120, INDIA	B94844727
6	90097891	18/12/2000 *	500,000.00	BANK OF BARODA	VALLABH VIDYANAGAR BRANCH, VIDYANAGAR, GUJARAT - 388120, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Advances from Directors	0.000	1.024
Total	0.000	1.024

OPERATIONS

During the year, the company achieved turnover of Rs. 282.270 Million against turnover of Rs. 170.202 Million of last year and recorded net profit of Rs. 32.164 Million compared to Rs. 6.033 Million of last year. To conserve the resources of the company, the directors do not recommend any dividend for the year.

FIXED ASSETS:

· Land (Freehold)

· Factory Shade and Buildings

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office Equipments

· Computer System and Software

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. 63.19
UK Pound	1	Rs. 94.94
Euro	1	Rs. 67.66

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUM
Report Prepared by :	BVA

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
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		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.