MIRA INFORM REPORT

Report No. :	334126
Report Date :	30.07.2015

IDENTIFICATION DETAILS

Name :	MARATHON ELECTRIC MOTORS (INDIA) LIMITED (w.e.f. 17.12.2007)
Formerly Known As :	ALSTOM INDUSTRIAL PRODUCTS LIMITED
Registered Office :	58, Taratala Road, Kolkata – 700024, West Bengal
Tel. No.:	91-33-24695560
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.04.2004
Com. Reg. No.:	21-098278
Capital Investment / Paid-up Capital :	Rs. 39.864 Million
CIN No.: [Company Identification No.]	U29120WB2004PLC098278
IEC No.:	0206013582
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAFCA5012Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Motors and industrial fans.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. As per registrar of companies the date of balance sheet i.e. financials filed is shown as 31^st March 2014 but the documents related to the financials for the year 2014 are not available from any sources. The ratings reflect company’s comfortable financial risk profile, marked by a healthy networth, comfortable capital structure and debt protection metrics in FY 2013. However, there seems decrease in sales turnover of the company in FY 2013, net profit margin has decreased over previous year. However, the ratings also factor in the company’s established market position in the electric motor business in India. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CRISIL
Rating	Long term rating = A-
Rating Explanation	Adequate degree of safety and low credit risk
Date	June 10, 2015

Rating Agency Name	CRISIL
Rating	Short term rating = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	June 10, 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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Harish Pangia
Designation :	Finance Executive
Contact No.:	91-9810041325
Date :	29.07.2015

LOCATIONS

Registered Office / Factory :	58, Taratala Road, Kolkata – 700024, West Bengal, India
Tel. No.:	91-33-24695560 / 44030400
Mobile No.:	91-9810041325 (Mr. Harish Pangia)
Fax No.:	91-33-24698530 / 24698530
E-Mail :	memi.mktg@marathonelectric.com mktg@marathonelectric.com marathonelectric.india@marathonelectric.com
Website :	www.marathonelectric.in
Branch Office :	Located At: · Ahmedabad · Bangalore · Bhubaneswar · Chandigarh · Chennai · Jamshedpur · Mumbai · Nagpur · New Delhi · Pune · Raipur · Secunderabad

DIRECTORS

As on 30.09.2014

Name :

Mr. Sheel Kapoor

Designation :

Director

Address :

Flat No. 86, Plot No. 102., Jai Apartments, Patparganj, New Delhi - 110092, India

Date of Birth/Age :

02.08.1969

Date of Appointment :

02.11.2007

DIN No.:

00063765

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	U31909HR1994FTC032429	Marathon Electric India Private Limited	Director	29/09/2006	29/09/2006	-	Active	NO
2	U40101DL1997PLC088255	RBC Motors India Limited	Additional director	02/11/2007	02/11/2007	-	Amalgamated	NO
3	U29120WB2004PLC098278	Marathon Electric Motors (India) Limited	Director	30/12/2008	02/11/2007	-	Active	NO

Name :

Mr. Scott Douglas Brown

Designation :

Director

Address :

9 Coyote Ct, Madison, Wisconsin, 53717, United States Of America

Date of Birth/Age :

24.07.1959

Date of Appointment :

16.02.2009

DIN No.:

02505852

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	U29120WB2004PLC098278	Marathon Electric Motors (India) Limited	Director	23/09/2009	16/02/2009	-	Active	NO
2	U31909HR1994FTC032429	Marathon Electric India Private Limited	Director	19/09/2009	16/02/2009	-	Active	NO

Name :

Mr. Debajit Sen

Designation :

Additional Director

Address :

146/8c, Lake Gardens, Kolkata - 700045, West Bengal, India

Date of Appointment :

26.12.2014

DIN No.:

07049886

Name :

Mr. Debashish Ghosh

Designation :

Additional Director

Address :

772 Lake Town, Block A LP 103/10/4/4, Kolkata - 700055, West Bengal, India

Date of Appointment :

26.12.2014

DIN No.:

07049935

KEY EXECUTIVES

Name :	Mr. Harish Pangia
Designation :	Finance Executive

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Regal Beloit Finance BV, Nether	3986389
Dutch Horizon I LLC	1
Dutch Horizon II LLC	2
Dutch Horizon III LLC	2
Dutch Horizon IV LLC	2
Dutch Horizon V LLC	3
Dutch Horizon VI LLC	3
Total	3986402

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Motors and industrial fans.

Products :

Product Description	Item Code No. (ITC Code)
Electric Motor and Excluding Generating Sets	85014010

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cash and Cheque (30/60/90 Days)

Purchasing :

Cash and Cheque (30/60/90 Days)

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

2000 (Approximately)

Bankers :

Banker Name	IDBI Bank
Branch Address	Main Branch, Kolkata, West Bengal, India
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 Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

· Punjab National Bank, B. R. B. B. Road Branch, 135, B. R. B. B. Road, Kolkata - 700001, West Bengal, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWING
Rupee term loans from banks	30.324	5.383
Total	30.324	5.383

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Bengal Intelligent Park, Building Alpha, 1st Floor, Block EP and GP, Sector V, Salt Lake Electronics Complex, Kolkata – 700091, West Bengal, India
PAN No.:	AADFD5357J
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern :	Marathon Electric India Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital:

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
3986402	Equity Shares	Rs.10/- each	Rs.39.864 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	39.864	39.864	39.864
(b) Reserves & Surplus	1781.647	1650.516	1416.319
(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)	1821.511	1690.380	1456.183
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	42.078	34.257	39.592
Total Non-current Liabilities (3)	42.078	34.257	39.592
(4) Current Liabilities
(a) Short term borrowings	30.324	5.383	67.490
(b) Trade payables	635.180	819.947	674.170
(c) Other current liabilities	60.850	90.039	61.949
(d) Short-term provisions	90.295	92.544	81.543
Total Current Liabilities (4)	816.649	1007.913	885.152
TOTAL	2680.238	2732.550	2380.927
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	383.499	378.213	206.656
(ii) Intangible Assets	0.000	0.000	0.134
(iii) Capital work-in-progress	0.649	14.888	95.334
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	72.801	61.956	74.897
(d) Long-term Loan and Advances	82.863	74.841	100.037
(e) Other Non-current assets	2.057	2.057	2.057
Total Non-Current Assets	541.869	531.955	479.115
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	607.644	672.327	766.246
(c) Trade receivables	1342.739	1380.014	1008.846
(d) Cash and cash equivalents	152.503	75.255	73.207
(e) Short-term loans and advances	34.812	72.650	53.418
(f) Other current assets	0.671	0.349	0.095
Total Current Assets	2138.369	2200.595	1901.812
TOTAL	2680.238	2732.550	2380.927

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	2854.577	3444.763	2783.261
	Other Income	33.654	15.928	22.386
	TOTAL	2888.231	3460.691	2805.647
Less	EXPENSES
	Cost of Materials Consumed	1916.350	2341.000	2187.619
	Purchases of Stock-in-Trade	0.000	17.596	22.404
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	14.697	33.641	(197.719)
	Employees benefits expense	324.548	312.779	236.350
	Other expenses	376.822	360.625	333.871
	TOTAL	2632.417	3065.641	2582.525
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	255.814	395.050	223.122
Less	FINANCIAL EXPENSES	7.406	3.741	1.012
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	248.408	391.309	222.110
Less/ Add	DEPRECIATION/ AMORTISATION	55.633	36.962	32.403
	PROFIT/ (LOSS) BEFORE TAX	192.775	354.347	189.707
Less	TAX	61.645	120.150	67.995
	PROFIT/ (LOSS) AFTER TAX	131.130	234.197	121.712
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	NA	59.104	10.703
	TOTAL EARNINGS	NA	59.104	10.703
	IMPORTS
	Capital items	NA	33.509	81.731
	Raw materials and components	NA	401.189	420.622
	TOTAL IMPORTS	NA	434.698	502.353
	Earnings / (Loss) Per Share (Rs.)	32.89	58.75	30.53

Particulars	31.03.2015	31.03.2014
Sales Turnover (Approximately)	3000.000	3200.000

The above information has been parted by Mr. Harish Pangia (Finance Executive).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2013	31.03.2012	31.03.2011
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	144.452	293.464	(132.606)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	4.59	6.80	4.37
Operating Profit Margin (PBDIT / Sales)	(%)	8.96	11.47	8.02
Return on Total Assets (PBT/Total Assets}	(%)	7.40	13.34	8.58
Return on Investment (ROI) (PBT/Networth)		0.11	0.21	0.13
Debt Equity Ratio (Total Debt/Networth)		0.02	0.00	0.05
Current Ratio (Current Asset/Current Liability)		2.62	2.18	2.15

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	39.864	39.864	39.864
Reserves & Surplus	1416.319	1650.516	1781.647
Net worth	1456.183	1690.380	1821.511
long-term borrowings	0.000	0.000	0.000
Short term borrowings	67.490	5.383	30.324
Total borrowings	67.490	5.383	30.324
Debt/Equity ratio	0.046	0.003	0.017

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2783.261	3444.763	2854.577
		23.767	(17.133)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2783.261	3444.763	2854.577
Profit	121.712	234.197	131.130
	4.37%	6.80%	4.59%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last five years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10047328	30/04/2009 *	100,000,000.00	PUNJAB NATIONAL BANK	B. R. B. B. ROAD BRANCH, 135, B. R. B. B. ROAD, KOLKATA - 700001, WEST BENGAL, INDIA	A64044845
2	10033907	15/12/2010 *	380,000,000.00	IDBI BANK LIMITED	KOLKATA MAIN BRANCH (MCG), IDBI HOUSE, 44 SHAKESPEARE SARANI, KOLKATA - 700017, WEST BENGAL, INDIA	B01237346

* Date of charge modification

FIXED ASSETS

· Land

Buildings

Plant and equipment

Furniture and fixtures

Office equipment

Computer Equipments

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.63.89
UK Pound	1	Rs.99.71
Euro	1	Rs.70.62

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KIN
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--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		50

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.