MIRA INFORM REPORT

Report Date :

05.12.2008

IDENTIFICATION DETAILS

Name :	FLOWSERVE B.V.

Registered Office :	Parallelweg 6 Etten- Leur 4878AH

Country :	Netherlands

Financials (as on) :	31.12.2006

Date of Incorporation :	01.01.1971

Legal Form :	Private Limited Liability Company (BV) with Ordinary Structure

Line of Business :	Manufacture of Pumps and Compressors

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	(€) 18,100,000

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

Company Summary

COMPANY DETAILS
Company Name	Flowserve B.V.
Chamber of Commerce Number	20052878
Street	Parallelweg
House Number	6
City	ETTEN-LEUR
Postal Code	4878AH
Phone	076 5028200
Incorporated Date	01-01-1971
Company Type	Private limited liability company (BV) with ordinary structure

MAILING ADDRESS DETAILS
Street	Parallelweg
House Number	6
City	ETTEN-LEUR
Postal Code	4878AH

CREDIT INFORMATION SUMMARY
Company Status	ACTIVE
Credit Rating	68	good credit worthiness
Credit Limit (€)	18,100,000
Purchase Limit (€)	121,000,000

PAYMENT EXPECTATIONS SUMMARY
Suspension of Payments / Mora	No
Payment Expectation Days	66.57
Day Sales Outstanding	66.73
Industry Average Payment Expectation Days	49.98
Industry Average Day Sales Outstanding	125.69

COURT DATA SUMMARY
Court Action	No
Type

HOLDING COMPANY DETAILS
Company Name	No

DIRECTOR
Director	J.M. Nanos

Accounts & Ratios

PERIOD
Accounts End Date	31-12-2006	changes	31-12-2005	changes	31-12-2004
Weeks	52	-	52	-	52
Currency	EUR		EUR		EUR
Consolidated Accounts	N		N		N
Profit & Loss
Turnover	692,354,000	33.2%	519,638,000	11.8%	464,658,000
Total Operating Expenses	669,802,000	35.6%	494,043,000	17.1%	421,769,000
Operating Result	22,552,000	-11.9%	25,595,000	-40.3%	42,889,000
Total Financial Income	3,237,000	670.7%	420,000	-	-
Total Financial Expenses	17,720,000	32.4%	13,385,000	-	-
Results on Ordinary Operations Before Tax	8,069,000	-36.1%	12,630,000	21.5%	10,393,000
Taxation	6,627,000	-37.3%	10,575,000	28.9%	8,206,000
Results on Ordinary Operations After Tax	1,442,000	-29.8%	2,055,000	-6.0%	2,187,000
Extraordinary Items	-	-	-	-	-
Net Result	1,458,000	-29.5%	2,068,000	-6.0%	2,199,000
Other Information
- Employee Costs	30,515,000	-	-	-	-
- Social Security Contributions	-	-	-	-	-
- Amortization & Depreciation	29,681,000	23.9%	23,960,000	-	-

BALANCE SHEET
Accounts End Date	31-12-2006	-	31-12-2005	-	31-12-2004
Weeks	52		52		52
Currency	EUR		EUR		EUR
Consolidated Accounts	N		N		N
Intangible Fixed Assets	220,118,000	42.4%	154,605,000	46.1%	105,808,000
- Goodwill	0	-	0	-	0
- Other Intangible Fixed Assets	220,118,000	42.4%	154,605,000	46.1%	105,808,000
Tangible Assets	78,013,000	24.9%	62,479,000	3.4%	60,397,000
- Land And Buildings	0	-	0	-	0
- Plant And Machinery	0	-	0	-	0
- Other Tangible Fixed Assets	78,013,000	24.9%	62,479,000	3.4%	60,397,000
Financial Fixed Assets	153,072,000	108.1%	73,540,000	174.1%	26,826,000
- Investments In Group Company	0	-	0	-	0
- Recievables From Group Company	0	-	0	-	0
- Other Financial Assets	153,072,000	108.1%	73,540,000	174.1%	26,826,000
Fixed Assets	451,203,000	55.3%	290,624,000	50.6%	193,031,000
Inventories
- Raw Materials & Consumables	0	-	0	-	0
- Work in Progress	0	-	0	-	0
- Finished Goods	0	-	0	-	0
- Other Stocks	0	-	0	-	0
Receivables	267,533,000	183.5%	94,373,000	-21.5%	120,206,000
- Trade Debtors	126,579,000	101.1%	62,956,000	-47.6%	120,206,000
- Group Accounts	0	-	0	-	0
- Cash	14,805,000	-85.2%	100,167,000	3,042.0%	3,188,000
- Miscellaneous Current Assets	140,954,000	348.7%	31,417,000	-	0
Total Current Assets	431,071,000	61.1%	267,655,000	44.9%	184,694,000
Current Liabilities
- Trade Creditors	122,165,000	133.6%	52,295,000	-	0
- Short Term Group Loans	0	-	0	-	0
- Other Short Term Loans	0	-	0	-	0
- Payments Received On Account	0	-	0	-	0
- Taxation	0	-	0	-	0
- Miscellaneous Current Liabilities	277,784,000	273.7%	74,342,000	-25.8%	100,242,000
Total Current Liabilities	399,949,000	215.8%	126,637,000	26.3%	100,242,000
Long Term Debts
- Long Term Group Loans	0	-	0	-	0
- Other Long Term Loans	0	-	0	-	0
- Other Long Term Liabilities	326,709,000	10.9%	294,560,000	96.5%	149,875,000
Total Long Term Debts	326,709,000	10.9%	294,560,000	96.5%	149,875,000
Shareholders Equity
Issued Share Capital	0	-	0	-100.0%	472,000
Share Premium Account	0	-	0	-100.0%	41,324,000
Reserves	0	-	0	-	0
Revaluation Reserve	0	-	0	-	0
Legal & Statutory Reserves	0	-	0	-	0
Other Share Capital & Reserves	69,228,000	10.2%	62,798,000	152.8%	24,840,000
Minority Interests	33,000	-37.7%	53,000	12.8%	47,000
Total Shareholders Equity	69,261,000	10.2%	62,851,000	-5.7%	66,683,000
Working Capital	31,122,000	-77.9%	141,018,000	67.0%	84,452,000
Net Worth	-150,857,000	-64.4%	-91,754,000	-134.5%	-39,125,000

RATIOS ANALYSIS
Trading Performance
Results on Ordinary Operations before Tax Profit Margin	0.01	-50.0%	0.02	0.0%	0.02
Return On Capital Employed	0.02	-50.0%	0.04	-20.0%	0.05
Return On Total Assets Employed	0.01	-50.0%	0.02	-33.3%	0.03
Return On Net Assets Employed	0.05	-44.4%	0.09	12.5%	0.08
Sales net Working Capital	22.25	504.6%	3.68	-33.1%	5.50
Operating Efficiency
Stock Turnover Ratio	0.21	50.0%	0.14	7.7%	0.13
Debtor Days	66.73	50.9%	44.22	-53.2%	94.42
Creditor Days	66.57	72.3%	38.64	-	-
Short Term Stability
Current Ratio	1.08	-48.8%	2.11	14.7%	1.84
Liquidity Ratio	0.71	-53.9%	1.54	25.2%	1.23
Current Debt Ratio	5.77	187.1%	2.01	34.0%	1.50
Long Term Stability
Gearing	471.71	0.7%	468.66	108.5%	224.76
Equity In Percentage	10.46	-32.8%	15.57	-36.5%	24.52
Total Debt Ratio	4.72	0.6%	4.69	108.4%	2.25

Payment Expectations

Suspension of Payments / Moratorium History
Date
Details

Payment Expectations
Payment Expectation Days	66.57
Day Sales Outstanding	66.73

Industry Comparison
Activity Code	2912
Activity Description	Manufacture of pumps and compressors
Industry Average Day Sales Outstanding	125.69
Industry Average Payment Expectation Days	49.98

Industry Quartile Analysis
Payment Expectation Days
Payment Expectations - Lower	46.71
Payment Expectations - Median	75.37
Payment Expectations - Upper	121.50
Day Sales Outstanding
Day Sales Outstanding - Lower	26.21
Day Sales Outstanding - Median	33.94
Day Sales Outstanding - Upper	71.04

Shareholder Details

HOLDING COMPANY (100%)
Company Name	Flowserve Holdings, Inc.
House Number	5215
Street	N. O'Connor Boulevard
City	Ver. Staten van Amerika
Postal Code

SUBSIDARIES (100%)
Company Name	Flowserve Flow Control Benelux B.V.
House Number	17
Street	Rechtzaad
City	ROOSENDAAL
Postal Code	4703RC
Company Name	Flowserve Netherlands Management B.V.
House Number	6
Street	Parallelweg
City	ETTEN-LEUR
Postal Code	4878AH
Company Name	Flowserve Repair & Services B.V.
House Number	6
Street	Parallelweg
City	ETTEN-LEUR
Postal Code	4878AH
Company Name	Flowserve International B.V.
House Number	6
Street	Parallelweg
City	ETTEN-LEUR
Postal Code	4878AH

Court Data

Identification Details
Company Name
Trade Name
Chamber of Commerce Number
Street
City
Country
Post Code

Facts
Court Action
Details
Annulment (if applicable)
Date of Annulment	--

Dates
Enunciation Date	--
Voting Date (in case of Moratorium)	--

Receiver Details (if bankruptcy)
Name
Title
Gender
Street
City
Country
Post Code

Industry Details
Activity Description
Activity Code

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.69
UK Pound	1	Rs.72.96
Euro	1	Rs.63.46

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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%)

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

CAPITAL DETAILS
Nominal Capital	2,000,000
Placed Capital	471,932
Deposited Capital	471,932

EMPLOYEE DETAILS
Number Of Employees	546