MIRA INFORM REPORT

Report Date :

18.04.2011

IDENTIFICATION DETAILS

Name :	INDUSTRIAL HYDRAULICS PRIVATE LIMITED
Registered Office :	C-27, Angol Industrial Estate, Udyambag, Belgaum – 590 008, Karnataka
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	24.04.1995
Com. Reg. No.:	08-17666
CIN No.: [Company Identification No.]	U28110KA1995PTC017666
TAN No.: [Tax Deduction & Collection Account No.]	BLRI01052C
PAN No.: [Permanent Account No.]	AAACI4163K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hydraulics Machinery.

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 78000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually made 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. B P Desai
Designation :	Director
Date :	30.03.2011

LOCATIONS

Registered Office/Factory :	C-27, Angol Industrial Estate, Udyambag, Belgaum – 590 008, Karnataka, India
Tel. No.:	91-831-2440723 / 5202117 / 4202117
Fax No.:	91-831-2441334
E-Mail :	ihpl@airtelmail.in gururaj_mutalik@rediffmail.com
Area :	3400 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Bhujabali Padmappa Desai
Designation :	Chairman cum Managing Director
Address :	306-B, Roy Road, Tilakwadi, Belgaum – 590 006, Karnataka, India
Date of Birth/Age :	01.06.1949
Date of Appointment :	24.04.1995
Mobile No.:	91-9341770117
Name :	Mr. Manik Padmappa Desai
Designation :	Director
Address :	306-B, Roy Road, Tilakwadi, Belgaum – 590 006, Karnataka, India
Date of Birth/Age :	20.03.1935
Date of Appointment :	24.04.1995
Name :	Mrs. Mala Manik Desai
Designation :	Director
Address :	306-B, Roy Road, Tilakwadi, Belgaum – 590 006, Karnataka, India
Date of Birth/Age :	15.08.1949
Date of Appointment :	24.04.1995
Name :	Mr. Anand Manik Desai
Designation :	Director
Address :	306, Roy Road, Tilakwadi, Belgaum – 590 006, Karnataka, India
Date of Birth/Age :	24.02.1970
Date of Appointment :	31.03.1997

KEY EXECUTIVES

Name :	Mr. Nilafor
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders	No. of Shares
Bhujabali Padmappa Desai	20010
Manik Padmappa Desai	2790
Mala Manik Desai	960
Anand Manik Desai	540
Total	24300

Equity share breakup (percentage of total equity)

AS ON 30.09.2009

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Hydraulics Machinery.
Terms :
Selling :	Cash, Credit (30 days / 60 days / 90 days)
Purchasing :	Cash, Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :

· Industrial

· HAL

· BHEL

· BEML

· TATA

· Railways

· Hindustan Composits

· Hindustan Motor Mfg. Company, Mumbai

· Kapil Corepacks, Delhi

· Kapsons Electro Stampings, Jalandhar

· Precision Engineering Works, Mumbai

· Prime Press Matics, Gujarat

· Pragati Pumps, Ahmedabad

· Paras Pumps Private Limited, Mumbai

· Kapson Industries (P) Limited, Jalandhar

· Auto Limited, Ludhiana

· Precision Stampings, Faridabad

· Pittie Alcast Private Limited Hyderabad

· Poggen Amp, Ahmedabad

· Non Ferrows Materials Technology Dev., Hyderabad.

No. of Employees :

32

Bankers :

• State Bank of India, Udyambag, Belgaum, Karnataka
• HDFC Bank, Karnataka Branch
• ICICI Bank

Facilities:

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Bank Overdraft A/c (Cash Key IHOL with SBI)	2.620	1.503
ICICI Car Loan	0.033	0.33
Total	2.653	1.833
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Mr. Anand Desai	(0.117)	0.271
Mr. B P Desai	0.078	(0.025)
Mr. B P Desai (Loan to IHOL)	2.115	0.000
Mr. Manik P Desai	0.501	0.635
Mr. M P Desai	(0.017)	(0.177)
Mrs. Mala M Desai	0.167	0.155
Total	2.726	0.860

Banking Relations :

--

Auditors :

Name :

Gadgil and Uppin

Chartered Accountant

Address :

1801, Kelkarbag, Belgaum – 590 002, Karnataka, India

Memberships :

· Belgaum Small Scale Industries Association

Associates/Subsidiaries :

IH Casting, Belgaum, Karnataka

Activity : Manufacturer of Casting

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24300	Equity Shares	Rs.100/- each	Rs.2.430 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2010	31.03.2009
Sales Turnover (Approximately)	25.000	25.000

Expected Sales (2010-2011) : Rs.300.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		2.430	2.430	2.430
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.005	17.277	11.554
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.435	19.707	13.984
LOAN FUNDS
1] Secured Loans		2.654	0.033	0.033
2] Unsecured Loans		2.727	2.362	0.547
TOTAL BORROWING		5.381	2.395	0.580
DEFERRED TAX LIABILITIES		0.004	0.023	0.000
TOTAL		19.820	22.125	14.564
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.504	2.127	1.697
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		14.875	13.736	11.270
DEFERREX TAX ASSETS		0.000	0.000	0.027
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.570	1.410	4.333
	Sundry Debtors	0.664	2.403	0.000
	Cash & Bank Balances	0.172	3.261	1.319
	Other Current Assets	0.000	3.245	1.565
	Loans & Advances	0.289	0.037	2.195
Total Current Assets		4.695	10.356	9.412
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.323	2.834	3.391
	Current Liabilities	0.889	0.944
	Provisions	0.042	0.316	4.451
Total Current Liabilities		2.254	4.094	7.842
Net Current Assets		2.441	6.262	1.570
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		19.820	22.125	14.564

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	16.942	29.580	15.226
		Other Income	1.011	1.539	0.902
		TOTAL	17.953	31.119	16.128
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.705	6.201	2.384
Add/ Less	DEPRECIATION/ AMORTISATION		0.510	0.478	0.362
	PROFIT BEFORE TAX		3.195	5.723	2.022
Less	TAX		0.353	1.831	0.732
	PROFIT AFTER TAX (		2.842	3.892	1.290
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.344	2.049	0.826
Less	APPROPRIATIONS
		Transfer to General Reserve	0.197	0.389	0.000
		Dividend	0.000	3.645	0.000
		Tax on Dividend	0.000	0.563	0.000
	BALANCE CARRIED TO THE B/S		3.989	1.344	2.117
	Earnings Per Share (Rs.)		239.00	150.00	--

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	16.78	12.51	7.99
Net Profit Margin (PBT/Sales)	(%)	18.85	19.35	13.28
Return on Total Assets (PBT/Total Assets}	(%)	44.38	45.85	18.20
Return on Investment (ROI) (PBT/Networth)		0.22	0.29	0.14
Debt Equity Ratio (Total Liability/Networth)		0.53	0.33	0.60
Current Ratio (Current Asset/Current Liability)		2.08	2.53	1.20

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES

· Hindustan Motors

FORM 8

Name of the company	INDUSTRIAL HYDRAULICS PRIVATE LIMITED
Presented By	State Bank of India, Industrial Estate Branch, Belgaum – 590 088
1) Date and description of instrument creating the change	02.01.1996 General Agreement for the grant of Small Industrial Advances and Hypothecation of movables, book debts and other assets
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.500 million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of the whole of the present and future stocks and book debts, movables and other assets belonging to the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest 17.5% Margin 25% Repayment : On demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Industrial Estate Branch, Belgaum

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 records 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 records 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.44.52
UK Pound	1	Rs.72.71
Euro	1	Rs.64.41

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	6
--PROFITABILIRY	1~10	4
--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
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.