MIRA INFORM REPORT

Report Date :

01.07.2011

IDENTIFICATION DETAILS

Name :	OM SHAKTHI HYDRAULICS PRIVATE LIMITED
Registered Office :	B-197, 5^th Main, 2^nd Stage, Peenya Industrial Area, Bangalore-560058, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.04.2002
Com. Reg. No.:	08-30372
Capital Investment/ Paid-up Capital:	Rs. 1.000 million
CIN No.: [Company Identification No.]	U31909KA2002PTC030372
IEC No.:	0703005120
TAN No.: [Tax Deduction & Collection Account No.]	BLRO01247B
PAN No.: [Permanent Account No.]	AAACO5892R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hydraulic and Pneumatic Cylinder and Power Packs.
No. of Employees:	80 (Approximately)

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 51000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 :	Ms. Sunaiana
Designation :	Manager in Customer Care
Contact No.:	91-9480686763
Date :	29.06.2011

LOCATIONS

Registered Office / Factory :	B-197, 5^th Main, 2^nd Stage, Peenya Industrial Area, Bangalore-560058, Karnataka, India
Tel. No.:	91-80-28364084/ 2363442/ 41171117/ 41171007/28364048
Mobile No.:	91-9480686763 (Ms. Sunaina)
Fax No.:	91-80-28363442
E-Mail :	oshy@vsnl.net marketing@oshpt.in alok_reddy@rediffmail.com tr_jairam@vsnl.net
Website :	http://www.omshaktihydraulics.com
Area :	5000 Sq.ft
Location :	Owned

DIRECTORS

As on 25.09.2010

Name :	Mr. Bhojaraju Ballaiganur Ningachar
Designation :	Director
Address :	No. 69, 7^th Main, 7^th B Corss, Kalyan Nagar, T. Dasarahalli, Bangalore-560057, Karnataka
Date of Birth/Age :	25.06.1964
Qualification :	DME
Experience :	25 Years
Date of Appointment :	16.04.2002
DIN No.:	01950845
Name :	Mr. Shetty N Krishan
Designation :	Director
Address :	No. 910, 2^nd B Cross, 5^th Main, Havanur Ext, Nagasandra Post, Bangalore – 560077, Karnataka, India
Date of Birth/Age :	18.04.1963
Qualification :	DME
Experience :	25 Years
Date of Appointment :	16.04.2002
Name :	Mr. Balkrishna Durairaj
Designation :	Director
Address :	No.17, Bhuvaneshwar Nagar, 12^th Cross, Laks, SMI Temple Road, Bangalore – 560057, Karnataka, India
Date of Birth/Age :	22.06.1966
Qualification :	DME
Experience :	25 Years
Date of Appointment :	16.04.2002
DIN No.:	01973595

KEY EXECUTIVES

Name :	Ms. Sunaiana
Designation :	Manager in Customer Care

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders	No. of Shares
Blakrishna Durairaj	3400
Krishna N	3300
B N Bhogaraju	3300
Total	10000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Hydraulic and Pneumatic Cylinder and Power Packs.
Products :	v The Rod Construction Cylinders v Non tie Rod Construction Cylinders v Cylinder Earth Moving Application v Telescopic Cylinders v Clamp Cylinders v Swing Clamp Cylinders v Hydro Pneumatic Press Cylinders v Hydraulic Power Packs v Pneumatic Cyllinders v Hand Pump v Hydraulic Press v Custom Built Control Block Mainfolds v Master Pin Pusher Unit v Bagasse Compactor etc.
Exports :
Products :	Hydraulic Cylinders
Countries :	v Bahrain
Terms :
Selling :	L/C, Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Actual Production
Hydraulic Cylinders	Nos.	5386
Hydraulic Spares	Nos.	1955

GENERAL INFORMATION

Customers :

Retailers and OEM’s

No. of Employees :

80 (Approximately)

Bankers :

v Canara Bank, Specialised SME Branch, 473D, 13^th Cross, IV Phase, Peenya Industrial Estate, Banglore – 560058, Karnataka, India

v Axis Bank Limited, M.G. Road Branch, Banglore-560001, Karnataka

v UCO Bank, Bangalore, Karnataka

v ICICI Bank

v Citi Bank

v Centurion Bank

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Cash Credit – Bank	11.994	10.265
Canara Bank – Term Loan	1.563	2.689
Bill Discounting	2.900	2.019
ICICI Bank (Acer Loan)	0.000	0.016
Citit Bank Loan	2.689	2.839
Centurion Bank	0.000	0.007
Religare Finvest Limited	0.993	0.000
Total	20.139	17.835
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Unsecured Loan From Citibank	0.297	0.494
Other unsecured Loans	1.115	0.000
Total	1.412	0.494
Note: The cash credit facility and Factoring is secured by hypothecation of inventories and book debts, other loans are secured by assets.

Banking Relations :	Satisfactory
Auditors :
Name :	Mr. R Ramakrishna Chartered Accountant
Address:	No-5-6/335, 13^th Cross Sampige Road, Malleshwaram Bangalore-560003, Karnataka, India
Tel No.:	91-80-23445604
Telefax No:	91-80-23561748
Email:	rramakrishnaca@gmail.com
Memberships :	INDIAN/ KASSIA/ PIA
Associates/Subsidiaries :	v Ultra Fluid Systems Address : V - 17 Peenya Industrial Area, Bangalore-560058, Karnataka, India Line of Business: Manufactures of Hydraulic Products.

CAPITAL STRUCTURE

As on 25.09.2010

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
10000	Equity Shares	Rs. 100/- each	1.000 million

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs. 100/- each	Rs. 8.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 100/- each	Rs. 1.000 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		1.000	1.000	1.000
2] Share Application Money		6.970	6.970	0.000
3] Reserves & Surplus		4.774	3.369	1.684
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.744	11.339	2.684
LOAN FUNDS
1] Secured Loans		20.139	17.835	17.664
2] Unsecured Loans		1.412	0.494	0.638
TOTAL BORROWING		21.551	18.329	18.302
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		34.295	29.668	20.986
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.273	5.091	6.051
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		6.803	4.103	0.000
DEFERREX TAX ASSETS		0.148	0.082	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.336	12.528	10.009
	Sundry Debtors	24.744	18.197	13.357
	Cash & Bank Balances	1.789	2.215	1.174
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.929	5.831	4.490
Total Current Assets		45.798	38.771	29.030
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.293	17.757	14.075
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.434	0.622	0.020
Total Current Liabilities		22.727	18.379	14.095
Net Current Assets		23.071	20.392	14.935
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		34.295	29.668	20.986

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	43.639	55.341	42.055
		Other Income
		TOTAL (A)	43.639	55.341	42.055
Less	EXPENSES
		Office Expenses
		Administrative Expenses	38.291	49.025	37.801
		Advertising Expenses
		TOTAL (B)	38.291	49.025	37.801
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.348	6.316	4.254
Less	FINANCIAL EXPENSES (D)		2.450	2.796	2.748
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.898	3.520	1.506
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.818	1.013	1.144
	PROFIT BEFORE TAX (E-F) (G)		2.080	2.507	0.362
Less	TAX (H)		0.740	0.905	0.000
	PROFIT AFTER TAX (G-H) (I)		1.340	1.602	0.362
	Earnings Per Share (Rs.)		134.00	--	--

Particulars	31.03.2011
Sales Turnover (Approximately)	60.000

Expected Sales (2011-2012) : Rs. 80.000 Millions

The above information has been parted by Ms. Sunaina (Manager in Customer care)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.07	2.89	0.86
Return on Total Assets (PBT/Total Assets}	(%)	4.15	5.72	1.03
Return on Investment (ROI) (PBT/Networth)		0.16	0.22	0.13
Debt Equity Ratio (Total Liability/Networth)		3.47	3.24	12.07
Current Ratio (Current Asset/Current Liability)		2.02	2.11	2.06

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company	OM SHAKTI HYDRAULICS PRIVATE LIMITED
Presented By	Canara Bank, Specialised SSI Branch, Peenya, Bangalore – 560 058
1) Date and description of instrument creating the change	05.01.2005 Deed of hypothecation Re machinery
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.200 millions
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	Plant and machinery, Tools and accessories as per list attached to the agreement as also those to be purchased hereafter which are kept/ to be or in transit being erected at the premises in the occupation of the borrower at no. B 197, II Stage, Peenya Industrial Area, Bangalore – 560 58, Karnataka, India.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @ 2% above the ongoing benchmark PLR with a minimum of 12.75% p.a. Repayment – In 56 monthly Instalments of Rs. 39000/- each and last Installment of Rs. 16000/- commencing from April , 2005.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Specialised SSI Branch, Peenya, Bangalore – 560 058

Corporate identity number of the company	U31909KA2002PTC030372
Name of the company	OM SHAKTI HYDRAULICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-197, 5^th Main, 2^nd Stage, Peenya Industrial Area, Bangalore-560058, Karnataka, India
This form is for	Modification of Charge
Charge identification number of the charge to be modified	90194548
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Canara Bank, Specialised SME Branch, 473D, 13^th Cross, IV Phase, Peenya Industrial Estate, Banglore – 560058, Karnataka, India
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	01.02.2011
Amount secured by the charge	Rs. 22.750 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC/BE-SSI : 13.25% p.a., Stand By CC : 15.25%, Term Loan O : 14.75% p.a. Terms of Repayment CC- Running account repayable on demand Other Limits- As per existing sanction terms Margin As per bank home Extent and Operation of the charge The charge shall operate to the extent of entire loan amount plus interest, commission, cost, expenses and other charges if any thereof. Others The said amount of Rs. 22.750 Millions comprises of CC/OD – Rs. 12.000 Millions (enhanced from Rs. 10.000 Millions), BE SSI Rs. 3.000 Millions (enhanced from Rs. 2.000 Millions) and LC Rs. 3.000 Millions (enhanced from Rs. 1.000 Million) Guarantee Rs. 1.000 Million existing TL II Rs. 2.200 Millions since closed.
Short particulars of the property charged	Hypothecation by way of first charge on stocks, book debts, raw materials, finished goods, plant and machinery, and other movable present and future stored/ installed at company premises at B-197, 2^nd Stage, Peenya, Industrial Area, Bangalore-560058 or at any other place.
Date of instrument modifying the charge	31.01.2011
Particulars of the present modification	By the above, the amount stands enhanced from Rs. 19.950 Millions to Rs. 22.750 Millions (Al other terms and conditions remain uncharged)

This form is for	Modification of charge
Charge identification number of the charge to be modified	90194548
Corporate identity number of the company	U31909KA2002PTC030372
Name of the company	OM SHAKTI HYDRAULICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-197, 5^th Main, 2^nd Stage, Peenya Industrial Area, Bangalore-560058, Karnataka, India
Type of charge	v Book debts v Movable property (not being pledge)
Particular of charge holder	Name : Canara Bank Address: SME Branch, 473D, 13^th Cross, IV Phase, Peenya Industrial Area, City : Bangalore State : Karnataka ISO country code : IN Pin code : 560058 e-mail ID : tr_jairam@vsnl.net
Nature of description of the instrument creating or modifying the charge	a) Supplemental Agreement b) Supplemental collateral security agreement c) Agreement to be obtained CDB / SDB/ BE advances d) Deed of hypothecation re: machinery (All the above pertain to the same charge)
Date of instrument Creating the charge	27.03.2007
Amount secured by the charge	Rs. 15.750 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC / ODBD – 14.25% p.a. TL – 14.5% p.a. Terms of repayment OCC / ODBD – Repayable on demand subject to annual review / renewal TL – within 60 months at Rs. 12500/- Margin OCC / ODBD – 25% on stocks; 40% on book debts TL – 25% Extent operation of the charge The charge shall operate to the extent of Rs. 15.750 millions plus Interest, commission, costs, expenses and other charges thereon. Others The said amount of Rs. 15.750 millions comprises OCC / ODBD Rs. 6.000 millions (enhanced from Rs. 4.000 millions) ILC Rs. 1.000 million continued at existing level; BE SSI Rs. 5.000 millions now sanctioned; TL Rs. 3.750 millions (with a submit of Rs. 1.300 million as FLC) now sanctioned. The overall limits are enhanced from Rs. 5.000 millions to Rs. 15.750 millions.
Short particulars of the property charged	Continuing security by way of first charge on stocks of raw materials, semi finished goods, finished goods, stores, spares, book debts, plant, machineries and other movable assets both present and future stored/installed at company’s premises at B 197, Peenya Industrial Area, II Stage, Bangalore – 560058 or at any other place.
Date of latest modification prior to the present modification	10.04.2006
Particulars of the present modification	By the above , the amount secured by charge stands enhanced from Rs. 5.000 millions to Rs. 15.750 millions (All the terms and conditions remain unchanged)

Fixed Assets:

· Plant and Machinery

o CNC Machine

o Generator

o Lathe machine

o Machinery

o Measuring Scale

o Mobile Phone

o Printer

o Telephone

o UPS

o Welding Machine

· Furniture and Fixture

o Furniture and Fixture

o Electrical Fittings

o Fan

o Camera

· Computer

· Vehicles

o Acer Car

o Tata Indica

o Two Wheeler

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 :

The 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.

The 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. 44.72
UK Pound	1	Rs. 71.96
Euro	1	Rs. 64.79

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	5
--PROFITABILIRY	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	YES
--AFFILIATION	YES/NO	NO
--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.