MIRA INFORM REPORT

Report Date :

05.03.2011

IDENTIFICATION DETAILS

Name :	HYDROFLEX PIPE PRIVATE LIMITED
Registered Office :	4, Suflam Estate, Near Avtar Hotel, Isanpur Highway, Isanpur, Ahmedabad-382443, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.07.2004
Com. Reg. No.:	04-44405
CIN No.: [Company Identification No.]	U31909GJ2004PTC044405
TAN No.: [Tax Deduction & Collection Account No.]	AHMH01566F
PAN No.: [Permanent Account No.]	AABCH4397M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel Metallic Corrugated Flexible Hoses.

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The Company can be considered for any business dealings on secured 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. Ramesh Oza
Designation :	Director
Date :	22.02.2011

LOCATIONS

Registered Office :	4, Suflam Estate, Near Avtar Hotel, Isanpur Highway, Isanpur, Ahmedabad-382443, Gujarat
Tel. No.:	91-79-25716213 / 25716157 / 30954566
Mobile No.:	91-9879538580 / 9327435442 / 9327538580 (Mr. Ramesh Oza)
Fax No.:	91-79-25710302
E-Mail :	hydromate@icenet.ne hydromat2000@yahoo.co.in info@hydroflexpipes.com
Website :	www.hydroflexpipes.com
Location :	Owned
Factory :	Near Cargo Motors, National Highway No. 8, Jetalpur, Ahmedabad-382426, Gujarat, India
Tel. No.:	91-79-30951699
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Dilipbhai Rancchodbhai Patel
Designation :	Director
Address :	18/B, Gopalkunj Society Rambaug, Maninagar, Ahmedabad-380008, Gujarat, India
Date of Birth/Age :	30.07.1945
Date of Appointment :	02.07.2004
Name :	Mr. Bhupendra Ambalal Raghavji
Designation :	Director
Address :	34, Patel Society, Rambaug, Maninagar, Ahmedabad-380008, Gujarat, India
Date of Birth/Age :	03.09.1949
Date of Appointment :	02.07.2004
Name :	Mr. Nitinbhai Chimanlal Desai
Designation :	Director
Address :	4, Pradip Shops and Flats, Narayan Nagar, Paldi, Ahmedabad-380007, Gujarat, India
Date of Birth/Age :	16.02.1944
Date of Appointment :	02.07.2004
Name :	Mr. Kinchit Bhupendrabhai Patel
Designation :	Director
Address :	34, Patel Society, Jawahar Chowk, Maninagar, Ahmedabad-380008, Gujarat, India
Date of Birth/Age :	23.03.1980
Date of Appointment :	02.07.2004
Name :	Mr. Rameshbhai Vishnuprasad Oza
Designation :	Director
Address :	SA-5, Ashapuri Society, Near Police Station, Ghodasar, Ahmedabad, Gujarat, India
Date of Birth/Age :	09.08.1943
Date of Appointment :	02.07.2004
Name :	Mr. Fenilbhai Mahendrabhai Patel
Designation :	Director
Address :	26/C, Ishwamagar Society, Isanpur Road, Maninagar, Ahmedabad, Gujarat, India
Date of Birth/Age :	14.04.1974
Date of Appointment :	02.07.2004
Name :	Mr. Amitbhai Dilipbhai Patel
Designation :	Director
Address :	18/B, Gopalkunj Society, Bhairavnath Road, Rambaug, Ahmedabad, Gujarat, India
Date of Birth/Age :	31.08.1969
Date of Appointment :	02.07.2004
Name :	Mr. Tapan Rameshbhai Oza
Designation :	Director
Address :	SA-5, Ashapuri Society Near Police Station, Ghodasar, Ahmedabad, Gujarat, India
Date of Birth/Age :	05.10.1978
Date of Appointment :	02.07.2004
Name :	Mr. Ritesh Nitinbhai Desai
Designation :	Director
Address :	4, Pradip Shops and Flats, Narayanagar Road Paldi, Ahmedabad, Gujarat, India
Date of Birth/Age :	12.03.1974
Date of Appointment :	02.07.2004
Name :	Mr. Chinmay Mahendrabhai Patel
Designation :	Director
Address :	26/C, Ishwamagar Society, Isanpur Road, Maninagar, Ahmedabad, Gujarat, India
Date of Birth/Age :	01.11.1979
Date of Appointment :	02.07.2004

KEY EXECUTIVES

Name :	Ms. Krupali
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Dilipbhai Rancchodbhai Patel	1000
Rameshbhai Vishnuprasad Oza	1000
Bhupendra Ambalal Raghavji	1000
Nitinbhai Chimanlal Desai	1000
Fenilbhai Mahendrabhai Patel	1000
Amitbhai Dilipbhai Patel	1000
Tapan Rameshbhai Oza	1000
Ritesh Nitinbhai Desai	1000
Kinchit Bhupendrabhai Patel	1000
Chinmay Mahendrabhai Patel	1000
Total	10000

(AS ON 30.09.2009)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Stainless Steel Metallic Corrugated Flexible Hoses.
Products :	· Braided Hydraulic Hoses · Multi Spiral Hydraulic Hoses · Braided Industrial Hoses · Steam Hoses · Ptfe Flexible Hoses · Ptfe Convoluted Flexible Hoses · Camlock Coupling · Quick Release Coupling · Thermoplast High Pressure Hoses · Low Pressure Flexible Rubber Hoses · Hoses For Fertilizers And Chemical Plants · Industrial Rubber Hoses · Standard Hose Fitting With Thread Specifications · Coupling Ends
Exports :
Products :	Stainless Steel Metallic Corrugated Flexible Hoses.
Countries :	UAE Singapore US Indonesia Israel Norway
Terms :
Selling :	L/C, Cash and Credit (30 days)
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Corporates

· Cement Industries

· Fertilizer Company's Oil Refineries Steel plants

· Petrochemicals

· Pharmaceuticals

· Heavy Chemicals

· Glass Manufacturing Company

· Power Plant

· Nuclear Power Plants

· Thermal Power Plants

· Gas Power Plants of dual cycles of Government

· Major Dairies

· Dairy Equipments Machinery Manufacturing company

· Renowned Textile Mills

· Offshore Drilling Plants

No. of Employees :

40 (In Office-15, In Factory-25)

Bankers :

Union Bank of India, Maninagar, Ahmedabad, Gujarat, India Branch

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Secured Loan	2.220	2.458
Total	2.220	2.458
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors and Relatives of Director	18.603	14.007
From Others	0.000	0.000
Total	18.603	14.007

Banking Relations :	--
Auditors :
Name :	Himanshu Patel and Company Chartered Accountants
Address :	305, Riddhi Complex, Opposite Loha Bhavan, Ashram Road, Ahmedabad-380009, Gujarat, India
Associates/Subsidiaries :	Hydroflex Hoss Industries Address: Branch Maninagar, Ahmedabad B N Traders Address: Ahmedabad

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Share	Rs.10/- Each	Rs. 0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Share	Rs.10/- Each	Rs. 0.100 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		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(0.662)	(1.583)	(2.133)
NETWORTH		(0.562)	(1.483)	(2.033)
LOAN FUNDS
1] Secured Loans		2.220	2.458	1.877
2] Unsecured Loans		18.603	14.007	16.460
TOTAL BORROWING		20.823	16.465	18.337
DEFERRED TAX LIABILITIES		0.893	0.843	0.306
TOTAL		21.154	15.825	16.610
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.548	7.981	9.574
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	6.230	4.826	6.152
	Sundry Debtors	7.163	3.147	4.970
	Cash & Bank Balances	0.932	2.528	0.084
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.939	0.390	0.213
Total Current Assets		17.264	10.891	11.419
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.143	2.467	3.838
	Other Current Liabilities	0.468	0.366	0.456
	Provisions	0.047	0.214	0.092
Total Current Liabilities		4.658	3.047	4.386
Net Current Assets		12.606	8.072	7.033
MISCELLANEOUS EXPENSES		0.000	0.000	0.003
TOTAL		21.154	16.053	16.610

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL (A)	34.103	29.604	24.694
Less	EXPENSES
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.044	2.936	0.364
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.044	2.936	0.364
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.234	1.700	1.301
Add	OTHER INCOME		0.182	0.022	0.015
	PROFIT BEFORE TAX (E-F) (G)		0.992	1.258	(0.921)
Less	TAX (I)		0.071	0.708	0.026
	PROFIT AFTER TAX (G-I) (J)		0.921	0.551	(0.947)
	Earnings Per Share (Rs.)		92.09	55.12	--

Expected Sales (2010-11): Rs. 42.500 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.70	1.86	(3.83)
Return on Total Assets (PBT/Total Assets}	(%)	3.84	6.67	(4.39)
Return on Investment (ROI) (PBT/Networth)		(1.76)	(0.85)	(0.45)
Debt Equity Ratio (Total Liability/Networth)		(45.34)	(13.15)	(11.17)
Current Ratio (Current Asset/Current Liability)		3.71	3.86	2.78

LOCAL AGENCY FURTHER INFORMATION

Trade References

· Balan Steel

· GNSP

Bankers Charges Report as per Registry

Name of the company

HYDROFLEX PIPE PRIVATE LIMITED

Presented By

Mr. Dilipbhai Patel

1) Date and description of instrument creating the change

Hypothecation agreement of goods and debts assets dated 21.04.2005 made between M/s. Hydroflex Pipe Private Limited on one part and Union Bank of India, Maninagar Branch, Ahmedabad on the other part.

2) Amount secured by the charge/amount owing on the securities of charge

(Rs. In Millions)

Nature of facility	Present Limit
Cash Credit Hypothecation	3.200
Term Loan	4.000
Total	7.200

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

1. All tangible movable machinery, machinery fixtures fittings other installation, cranes furniture, computers and other accessories vehicles together with spares tools and accessories and all other articles lying on the premises at godown at Jetalpur, Taluka Dascroi, District Ahmedabad or wherever else.

2. The whole of the borrowers movable goods and assets both present and future including but without prejudice to generality of the foregoing words all stocks of Raw material, work in process, semi finished goods, finished goods such as SS and Corrugated Hose Pipe etc, packing materials, consumable stores and spares etc.

3. All the present and future book debts, outstanding monies, receivable, claim, bills, contracts, engagements and securities

4) Gist of the terms and conditions and extent and operation of the charge.

1. Margin

Cash Credit Hypothecation - Stock 25%

Book Debts 50%

Term Loan 25%

2. Rate of Interest

C. C. Hypothecation - 12.25%

Term Loan - 13.25%

3. Repayment

Cash Credit hypothecation amount repayable on demand

Term loan – to be repaid in 60 equal monthly installments to be paid on or before the 31.07.2005

5) Name and Address and description of the person entitled to the charge.

Union Bank of India, Maninagar Branch, Ahmedabad, Gujarat, India

6) Date and brief description of instrument modifying the charge

Nil

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Nil

Fixed Assets

· Computer and Printers

· Furniture and Fittings

· Delivery Van

· Land

· Plant and Machinery

· Electrification

· Factory Building / Shed

· Factory Tubewell

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.44.99
UK Pound	1	Rs.73.23
Euro	1	Rs.62.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	1
--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		27

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.