MIRA INFORM REPORT

Report Date :

05.01.2011

IDENTIFICATION DETAILS

Name :	HYDAC (INDIA) PRIVATE LIMITED
Registered Office :	Ladhbhai Mansion, 2^nd Floor, 1-A Mama Darmanand Marg, Opera House, Mumbai – 400064, Maharashtra
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	05.10.1988
Com. Reg. No.:	11-49084
CIN No.: [Company Identification No.]	U33100MH1988PTC049084
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Hydraulic Systems and Accessories.

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track, Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – 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. Sanjay Bhuwad
Designation :	Accountant
Contact No.:	91-22-65119401
Date :	04.01.2011

LOCATIONS

Registered Office :	Ladhbhai Mansion, 2^nd Floor, 1-A Mama Darmanand Marg, Opera House, Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-65119401
Fax No.:	91-22-27781180
E-Mail :	brijen@hydacindia.com sanjay@hydacindia.com
Website:	http://www.hydacindia.com
Area:	Owned
Factory :	Hydac House, Plot No.A-58, TTC Industrial Area, MIDC, Mahape Navi Mumbai – 400701, Maharashtra, India
Tel No.:	91-22-41118888
Fax No.:	91-22-27781180
Email :	info@hydacindia.com
Overseas Office :	Located at: · Australia · Hong Kong · India · Iran · Japan · Saudi Arabia · China · Indonesia · Korea · Singapore · Thailand · Taiwan · Malaysia · Vietnam · New Zealand

DIRECTORS

(AS ON 25.06.2010)

Name :	Mr. Venkateshwaran Krishnan
Designation :	Managing Director
Address :	Bungalow No.2, Union Park, Sion Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India
Date of Birth/Age :	08.06.1961
Date of Appointment :	25.06.2010
Email :	k.venkat@hydacindia.com
Name :	Mr. Schen Peter Otmar
Designation :	Director
Address :	AM – Friend of 17, D – 66450, Bexbach, Holchem, Germany
Date of Appointment :	24.04.1995
Name :	Mr. Renate Huber
Designation :	Director
Address :	Appostrabbe – 6, D- 66280 Sulzbach, Saar, Germany
Date of Appointment :	24.04.1995
Name :	Dr. Alexander Dieter
Designation :	Director
Address :	Sonnenrain 7, D- 97816 Lohrmain, Germany
Date of Appointment :	14.08.2001
Name :	Mr. Umesh Sharad Gandhi
Designation :	Director
Address :	53, Sea Gull, M L Dahanukar Marg, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	19.09.1964
Date of Appointment :	25.06.2010
Email :	brijen@hydacindia.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 25.06.2010)

Names of Shareholders	No. of Shares (Equity)
Umesh Sharad Gandhi	20
Vivek Chemicals and Private Limited	2000
Superlative Finance and Investments Private Limited	63000
Sharad Gandhi	38980
Buv Beteligugs UND	296000
Total	400000
Names of Shareholders	No. of Shares (Preference)
Superlative Finance and Investments Private Limited	374400
Buv Beterligugs UND	1065600
Total	1440000

(AS ON 30.06.2010)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	74.00
Bodies corporate	16.25
Directors or relatives of directors	9.75
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Hydraulic Systems and Accessories.
Exports :
Products :	Hydraulic Systems and Accessories
Countries :	Germany Gulf Countries Dubai
Imports :
Products :	Raw Material
Countries :	Germany USA Singapore
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.12.2009)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Accumulators	Nos.	NA	NA	3,970
Filters	Nos.	NA	NA	9,113
Filters Elements	Nos.	NA	NA	25,170
Magnets	Nos.	NA	NA	18,855
Valves	Nos.	NA	NA	30,781

GENERAL INFORMATION

No. of Employees :

Approximately 90 (Office 20, Factory 70)

Bankers :

• Deutsche Bank AG, Hazarimal Somani Marg, Fort, Mumbai – 400001, Maharashtra, India
• HDFC Bank, Navi Mumbai Branch

Facilities :

Secured Loans	31.12.2009 (Rs. In Millions)	31.12.2008 (Rs. In Millions)
Loans and Advances from Bank Cash Credit from Deutsche Bank	0.960	0.000
Total	0.960	0.000
NOTE: Secured by present and future tangible movable assets including plant and machineries, tools and accessories etc. and all the present and future book debts, outstandings, monies receivable etc. counter guarantee and indemnity By Hydac Technology Gmbh.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shivsagar Estate Worli, Mumbai – 400018, Maharashtra, India
Holding Company :	§ BUV (Beteiligungs Und Verwaltungs) Gmbh
Associates/Subsidiaries :	§ Hydac Accessories GmbH § Hydac Cooling GmbH § Hydac Electronic GmbH § Hydac Filtertechnik GmbH § Hydac Finland § Hydac OY § Hydac Process Technology GmbH § Hydac PTK Production Technik GmbH § Hydac SARL § Hydac SPA § Hydac SA Cooling Systems § Hydac Service GmbH § Hydac Systems GmbH § Hydac Technology GmbH § Hydac Technology corporation § Hydac Technology Limited § Hydac Technology Pte. Limited § Hydac GmbH

CAPITAL STRUCTURE

(AS ON 31.12.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- each	Rs.5.000 Millions
1800000	Preference Shares	Rs.10/- each	Rs.18.000 Millions
	Total		Rs.23.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
400000	Equity Share	Rs.10/- each	Rs.4.000 Millions
1440000	Preference Shares	Rs.10/- each	Rs.14.400 Millions
	Total		Rs.18.400 Millions

NOTE:

Of the above 296,000 Equity Shares and 1,065,800, 7% Non Cumulative Redeemable Preference Shares are held by BUV (Beteiligungs Und Verwaltungs) Gmbh the Holding company.

7% Non Cumulative Redeemable Preference Shares are redeemable at par within ten years but not earlier than one year from the date of allotment i.e. 21^st March 2001.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		18.400	18.400	18.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		296.312	223.987	153.728
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		314.712	242.387	172.128
LOAN FUNDS
1] Secured Loans		0.960	0.000	0.145
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.960	0.000	0.145
DEFERRED TAX LIABILITIES		0.000	0.000	4.896
TOTAL		315.672	242.387	177.169
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		66.999	60.594	57.006
Capital work-in-progress		31.092	11.702	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		2.583	1.771	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	190.304	177.482	103.709
	Sundry Debtors	183.596	132.095	100.871
	Cash & Bank Balances	98.143	70.935	30.324
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.045	28.279	39.217
Total Current Assets		497.088	408.791	274.121
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	236.229	198.272	137.789
	Other Current Liabilities	12.126	15.696	7.415
	Provisions	33.735	26.503	8.754
Total Current Liabilities		282.090	240.471	153.958
Net Current Assets		214.998	168.320	120.163
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		315.672	242.387	177.169

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008
	SALES
		Income	658.188	566.528
		Other Income	29.783	28.966
		TOTAL	687.971	595.494
Less	EXPENSES
		Office Expenses
		Administrative Expenses	567.981	476.384
		Advertising Expenses
		TOTAL	567.981	476.384
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		119.990	119.110
Less/ Add	DEPRECIATION/ AMORTISATION		6.320	4.961
	PROFIT BEFORE TAX		113.670	114.149
Less	TAX		41.344	43.890
	PROFIT AFTER TAX		72.326	70.259
	EARNINGS IN FOREIGN CURRENCY
		Commission	13.984	14.802
		FOB Value of Direct Exports	3.077	2.967
		Service Charges	4.068	9.581
	TOTAL EARNINGS		21.129	27.350
	IMPORTS
		Raw Materials	253.948	266.671
		Capital Goods	6.673	0.000
	TOTAL IMPORTS		260.621	266.671
	Earnings Per Share (Rs.)		180.81	175.65

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	10.51	28.99	NA
Net Profit Margin (PBT/Sales)	(%)	17.27	20.15	NA
Return on Total Assets (PBT/Total Assets}	(%)	20.15	24.32	NA
Return on Investment (ROI) (PBT/Networth)		0.36	0.47	NA
Debt Equity Ratio (Total Liability/Networth)		0.90	0.99	0.90
Current Ratio (Current Asset/Current Liability)		1.76	1.70	1.78

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CRDITORS

(Rs. In Millions)

Particulars	31.12.2009	31.12.2008	31.12.2007
Sundry creditors
Total Outstanding dues to Micro Enterprises and small enterprises	2.134	3.145	--
Total outstanding dues to creditors other than Micro Enterprises and small enterprises	234.095	195.127	137.789
Total	236.229	198.272	137.789

Trade References:

· Bosch Rexroth

· Larsen and Toubro

FINANCIAL RESULTS:

The company has made a profit after tax of Rs.72.326 Millions after providing depreciation of Rs.6.320 Millions and taxation Rs.40.531 Millions and reversal of deferred tax of Rs.0.813 Millions

OPERATIONS:

The operation during the year was satisfactory. The company achieved a sales turnover of Rs.658.188 and Other income of Rs.29.783 Millions.

FIXED ASSETS

· Leasehold Land

· Building

· Office premises

· Plant and Machinery

· Dies and Jigs

· Furniture and Fixtures

· Office Equipments

· Computers and Printers

· Vehicles

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.44.84
UK Pound	1	Rs.69.32
Euro	1	Rs.59.79

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.