MIRA INFORM REPORT

Report Date :

02.08.2011

IDENTIFICATION DETAILS

Name :	HYDROMECH AUTOMAciTION PRIVATE LIMITED
Registered Office :	WZ-3158-A, Mahendra Park, Rani Bagh, New Delhi – 110 034
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.08.1985
Com. Reg. No.:	55-021770
Capital Investment / Paid-up Capital :	Rs.0.482 Million
CIN No.: [Company Identification No.]	U74899DL1985PTC021770
IEC No.:	0501031553
TAN No.: [Tax Deduction & Collection Account No.]	DELH01779B
PAN No.: [Permanent Account No.]	AAACH2374P
Legal Form :	Private Limited Liability Company
Line of Business :	Designers, Consultants, Manufacturers and Suppliers of Hydraulic Valves, Pumps, Pneumatic Valves, Cylinder and Presses/ Power Packs.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 5000
Status :	Small Company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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. Sunrinder
Designation :	Sales Manager
Contact No.:	91-9311777401
Date :	26.07.2011

LOCATIONS

Registered/ Head Office :	WZ-3158-A, Mahendra Park, Rani Bagh, New Delhi – 110 034, India
Tel. No.:	91-11-27014283/ 20083198
Mobile No.:	91-9311777401 (Mr. Surinder)
Fax No.:	91-11-27034552/ 27014283
E-Mail :	vmanda@rediffmail.com hydroautomation@indiatimes.com to_rajminhas@yahoo.co.in
Area :	100 Sq. ft.
Location :	Owned
Factory :	Jaipur – Delhi National Highway Road (NH 8), Village-Pawta, Tehsil Kotputli, (Near Telephone Exhange), District Jaipur, Rajasthan, India
Fax No.:	91-1321-243418
Area :	1200 Sq. ft.
Location :	Owned

DIRECTORS

As on 28.09.2010

Name :	Mr. Dheer Singh Tanwar
Designation :	Director
Address :	3158 – A, Mahindra Park, Shakur Basti, Delhi – 110 034, India
Date of Birth/Age :	11.03.1955
Qualification :	D. Tech
Date of Appointment :	13.08.1985
DIN No.:	00334647
Name :	Mrs. Sunita Rani
Designation :	Director
Address :	3158 – A, Mahindra Park, Shakur Basti, Delhi – 110 034, India
Date of Birth/Age :	27.07.1976
Date of Appointment :	01.04.1996
DIN No.:	00334668
Name :	Mr. R. N. Sharma
Designation :	Director
Address :	44, Nalanda Apartments, Vikas Puri, New Delhi, India
Date of Appointment :	01.10.1996
Name :	Mr. Virender Singh Tanwar
Designation :	Director
Address :	WZ - 3158 – A, Mahindra Park, Shakur Basti, Delhi – 110 034, India
Date of Birth/Age :	06.06.1978
Qualification :	B.Com.
Date of Appointment :	03.08.1998
DIN No.:	00334705

KEY EXECUTIVES

Name :	Mr. Sunrinder
Designation :	Sales Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2010

Names of Shareholders	No. of Shares
Dheer Singh Tanwar	1810
Praveen Gupta	10
Supyar Devi	400
Sunita Rani	1250
Virender Singh Tanwar	1350
Total	4820

As on 28.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.80
Other top fifty shareholders	0.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Designers, Consultants, Manufacturers and Suppliers of Hydraulic Valves, Pumps, Pneumatic Valves, Cylinder and Presses/ Power Packs.
Product :	Hydraulic Moulding Press v Rubber Compression Moulding Press v Rubber Injection Moulding Press v Hydraulic Bakelite/Plywood Press v Hydraulic Press Brakes v Hydraulic Vacuum Compression v Hydraulic Pillar Type Press Hydraulic Presses for Other Purpose v Hydraulic Press v C-Frame Hydraulic Press v Hydraulic Powder Compacting Presses v Hydraulic Thimble Presses v Hydraulic Power Pack v Hydraulic Special Purpose Machine Hydraulic Press for Sheet Metal v Hydraulic Shearing Machines v Hydraulic Deep Draw Press Hydraulic Bailing Press v Single Action Hydraulic Bailing Press v Double Action Hydraulic Bailing Press v Triple Action Hydraulic Bailing Press v Hydraulic Forging Plants Hydraulic Cylinders
Exports :
Products:	Hydraulic Moulding Press v Rubber Compression Moulding Press v Rubber Injection Moulding Press v Hydraulic Bakelite/Plywood Press v Hydraulic Press Brakes v Hydraulic Vacuum Compression v Hydraulic Pillar Type Press Hydraulic Presses for Other Purpose v Hydraulic Press v C-Frame Hydraulic Press v Hydraulic Powder Compacting Presses v Hydraulic Thimble Presses v Hydraulic Power Pack v Hydraulic Special Purpose Machine Hydraulic Press for Sheet Metal v Hydraulic Shearing Machines v Hydraulic Deep Draw Press Hydraulic Bailing Press v Single Action Hydraulic Bailing Press v Double Action Hydraulic Bailing Press v Triple Action Hydraulic Bailing Press v Hydraulic Forging Plants Hydraulic Cylinders
Countries :	v Poland v Chile v Dubai v Australia
Terms :
Selling :	L/C and Credit (30/ 60/ 90 days)
Purchasing :	Credit (30/ 60/ 90 days)

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

25 (Approximately)

Bankers :

v Bank of Rajasthan

v HDFC Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
C. C. Hypothecation from the bank of Rajasthan, Delhi (Secured by hypothecation of stocks of raw materials, stock in process and finished goods. Further secured by Equitable mortgage of property at 69, Ganesh Colony, Jhtowara, Jaipur and personal guarantees of Director i.e. Mr. Dheer Singh Tanwar and Mr. Virendra Singh Tanwar)	0.284	0.397
Car Loan (From Mahindra and Mahindra Financial Services secured by hypothecation on car)	0.342	0.447
Total	0.626	0.844

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Director	2.269	1.365
From others	0.218	0.160
Total	2.487	1.525

Banking Relations :

Satisfactory

Auditors :

Name :

B. Jain and Associates

Chartered Accountants

Address :

F-3, 2^nd Floor, Ramesh Marg, C – Scheme, Jaipur – 302 001, Rajasthan , India

Tel. No.:

91-141-2372228/2372229

PAN No.:

AAAFB7062P

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4820	Equity Shares	Rs.100/- each	Rs.0.482 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.482	0.482	0.482
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.875	0.732	0.564
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.357	1.214	1.046
LOAN FUNDS
1] Secured Loans		0.626	0.844	0.916
2] Unsecured Loans		2.487	1.525	1.389
TOTAL BORROWING		3.113	2.369	2.305
DEFERRED TAX LIABILITIES		0.011	0.011	0.011
TOTAL		4.481	3.594	3.362
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.613	0.823	0.366
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.548	2.108	5.265
	Sundry Debtors	2.998	5.364	1.944
	Cash & Bank Balances	0.593	1.103	0.912
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.281	2.790	2.190
Total Current Assets		10.420	11.365	10.311
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.321	6.021	4.063
	Current Liabilities	1.957	2.277	3.038
	Provisions	0.274	0.296	0.214
Total Current Liabilities		6.552	8.594	7.315
Net Current Assets		3.868	2.771	2.996
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4.481	3.594	3.362

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	9.872	12.739	8.824
		Other Income	0.004	0.025	0.042
		TOTAL (A)	9.876	12.764	8.866
Less	EXPENSES
		Materials Cost	6.109	7.437	5.147
		Operating Expenses	3.276	3.096	2.546
		Employees Cost	0.872	0.603	0.440
		Administrative & Selling Expenses	0.535	0.604	0.364
		Accretion/ Decretion of Stock	(1.440)	0.495	(0.006)
		TOTAL (B)	9.352	12.235	8.491
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.524	0.529	0.375
Less	FINANCIAL EXPENSES (D)		0.107	0.087	0.083
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.417	0.442	0.292
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.210	0.192	0.129
	PROFIT BEFORE TAX (E-F) (G)		0.207	0.250	0.163
Less	TAX (H)		0.064	0.082	0.055
	PROFIT AFTER TAX (G-H) (I)		0.143	0.168	0.108
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.732	0.563	0.455
	BALANCE CARRIED TO THE B/S		0.875	0.732	0.563
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Goods Exported	Nil	0.682	Nil
	TOTAL EARNINGS		Nil	0.682	Nil
	Earnings Per Share (Rs.)		29.50	35.00	22.41

Particulars	31.03.2011 (Approximately)
Sales Turnover	12.500

The above information has been parted by Mr. Sunrinder (Sales Manager).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.45	1.32	1.22
Net Profit Margin (PBT/Sales)	(%)	2.10	1.96	1.85
Return on Total Assets (PBT/Total Assets}	(%)	1.88	2.05	1.53
Return on Investment (ROI) (PBT/Networth)		0.15	0.21	0.16
Debt Equity Ratio (Total Liability/Networth)		7.12	9.03	9.20
Current Ratio (Current Asset/Current Liability)		1.59	1.32	1.41

LOCAL AGENCY FURTHER INFORMATION

change of address:

The Registered Address of the company has been shifted from 1-6 DISDC Complex, Nagloi, New Delhi – 110 041, India to the present address with the effect from 01.03.2007.

operations:

The Company has achieved sales of Rs.9.872 millions in comparison to last years sales of Rs.12.739 millions. The Directors are to achieve better performance in future. The Company also made export and looking for making more efforts for participating in export markets

Fixed Assets:

v Machinery

v Car

v Generator

v Computer

v Motor Cycle

v Balero Car

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 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.44.05
UK Pound	1	Rs.72.40
Euro	1	Rs.63.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--AFFILIATION	YES/NO	No
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		30

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.