MIRA INFORM REPORT

Report Date :

07.03.2011

Note : PARKER MARKWEL INDUSTRIES PRIVATE LIMITED has been amalgamated with PARKER HANNIFIN INDIA PRIVATE LIMITED.

IDENTIFICATION DETAILS

Name :	PARKER HANNIFIN INDIA PRIVATE LIMITED PARKER MARKWEL INDUSTRIES PRIVATE LIMITED AMALGAMATED WITH PARKER HANNIFIN INDIA PRIVATE LIMITED
Registered Office :	Plot EL 26, MIDC Electronic Zone, TTC Industrial Area, Mahape, Navi Mumbai - 400 709, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	17.01.1989
Com. Reg. No.:	11-50377
CIN No.: [Company Identification No.]	U29119MH1989PTC050377
TAN No.: [Tax Deduction & Collection Account No.]	MUMP10093G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Engineering Products.

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

Maximum Credit Limit :	USD 1873000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some 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 business dealings with some caution, initially.

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 declined BY

Name :	Mr. B. Baddu
Designation :	Finance Manager
Contact No :	91-8455-248700
Date :	05.03.2011

LOCATIONS

Registered Office / Factory :	Plot EL 26, MIDC Electronic Zone, TTC Industrial Area, Mahape, Navi Mumbai - 400 709, Maharashtra
Tel. No.:	91-22-65137081 / 82 / 83 / 84 / 85
Fax No.:	91-22-27686841 / 27686618
E-Mail :	parker@vsnl.com mghag@parker.com vpai@parker.com bboddu@parker.com
Website :	www.parker.com
Area :	40000 sq.fts.
Location :	Leased (MIDC)
Sales offices 1 :	26-29(Partial)16A, Phase 5, IDA, Patanvheru, District Medak – 502319, Andhra Pradesh, India
Tel No. :	91-8455-248700
Fax No. :	91-8455-248789
Sales offices 2 :	19 B IDA Balangar, Hyderabad – 500037, India
Sales offices 3 :	Plot No. 20, Ajay Nager Colony, Near GSI, Bandlaguda – 500068, Hyderabad, India
Sales offices 4 :	26-29 IDA Phase 4, Patancheru, Medak – 502319, Andhra Pradesh, India
Factory 1 :	151 and 157, Developed Plots, Perungudi – 600096, Chennai, India
Factory 2 :	Chomerics Division No. 1465/2B1, Sriperumbudur Village, Taluka Sriperumbudur – 602105, Chennai, India
Factory 3 :	18-19, Phase 4, IDA, Patancheru – 502319, India
Factory 4 :	26-29, IDA, Phase 4, Patancheru – 502319, India
Branches :	House, 874, Dr. M C Modi Hospital Road, Bangalore – 560 086, Karnataka, India
Area :	3000 sq.fts.
Location :	Rented

DIRECTORS

As on 30.09.2009

Name :	Mr. Ashok Pratap
Designation :	Director
Address :	Ruby Mansion, 3^rd Floor, Darabhsha Lane, Nepean Sea Road, Mumbai – 400 036, Maharashtra
Date of Birth/Age :	02.10.1940
Date of Appointment :	17.01.1989
DIN No :	00107906
Name :	Ms. Parul Nanabai
Designation :	Director
Date of Birth/Age :	04.12.1957
Date of Appointment :	17.01.1989
DIN No :	00320158
Name :	Mr. Bhalasingam Sivapalan
Designation :	Director
Address :	# Flat No. 001, Camma Jaya Behri Silicon Country, Madhapur, Hyderabad – 500 034, Andhra Pradesh
Date of Birth/Age :	19.11.1959
Date of Appointment :	28.09.2007
DIN No :	01790430
Name :	Mr. Arjit Sen
Designation :	Additional Director
Address :	1C, Farab Fort Manor, 20, 1^st Main Road, Jayamahal Extn, Bangalore – 560 046, Karnataka
Date of Birth/Age :	17.11.1957
Date of Appointment :	07.01.2008
DIN No :	02097059
Name :	Mr. Thomas Anthony Piraino JR
Designation :	Director
Address :	2357 Delamere Road, C level Land, Ohio, USA 44106
Date of Birth/Age :	12.07.1949
Date of Appointment :	27.08.1998
DIN No :	02593802
Name :	Mr. John Joseph Vicic
Designation :	Director
Address :	120 Shady I.N, Montreay, USA
Date of Birth/Age :	06.06.1945
Date of Appointment :	19.12.2003
DIN No :	02542435
Name :	Mr. Myles hamel Reilly
Designation :	Director
Address :	II, Knightsbridge PL, Castle Hill, Sydney Australia NSW 215K
Date of Birth/Age :	02.12.1955
Date of Appointment :	30.10.2006
DIN No :	02460622

KEY EXECUTIVES

Name :	Mr. Madhukar
Designation :	Key Executive
Name :	Mr. B. Baddu
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (As on 30.09.2009)		No. of Shares
Parker Hannifin Corporation (U.S.A.)		11882987
Parker Hannifin International Corporation (U.S.A)		1679833
	Total	13562820

AS ON : 30.09.2009:-

Equity Share Breakup		Percentage of Holding
Category
Foreign Holdings (FIIs / Fcs / FFIs / NRIs / OCBs)		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Engineering Products.

Products :

Generic Names of principal Products of Company

Item Code No. (ITC Code)	Product Description
84131199	Hydraulics Pumps
84212190	Hydraulic Filters
73072900	Pipe Fittings

· Accumulators

· Actuators

· Adapters

· Additives

· Adhesives and Sealants

· Aerospace

· Aircraft Wheels and Brakes

· Air Preparation

· Analytical Systems

· Atomization Nozzles

· Controllers

· Cylinders

· Dental Products

· Diagnostic Products

· Drives

· Dryers

· Emi Shielding

· Enclosures

· Extruded Seals

· Filters

· Fittings

· Flanges

· Flow Controllers

· Flowmeters

· Fuel / Air Separators

· Gas Generators

· Gauges

· Gearheads and Gearmotors

· Heaters

· Hmi-visualization

· Hose

· Hose Crimpers / Swagers

· Hydrostatic Transmissions

· Inverters

· Linear Positioners

· Manifolds

· Miniature Fluidics

· Molded Shapes

· Monitoring

· Motors

· O-rings

· Packings

· Pfa/ptfe Products

· Power Take Offs

· Power Units

· Pumps

· Purifiers

· Quick Couplings

· Refrigeration and Air Conditioning

· Regulators

· Seals

· Sensors

· Steering

· Strainers

· Structural Aluminum

· Thermal Management

· Tools

· Tube Fabrication Equipment

· Tubing

· Valves

Exports :

Products :

Hydraulic Gear Pump

Countries :

Singapore, UK, Dubai, London

Imports :

Products :

Raw Material, House Fittings

Countries :

Chicago, Korea, China, Europe, US, New York

Terms :

Selling :

Cash, Credit (30 days/ 60 days / 90 days)

Purchasing :

Cash, Credit (30 days/ 60 days / 90 days)

PRODUCTION STATUS (As on:31.03.2009):-

Particulars	Unit	Licensed Capacity #	Installed Capacity **
Hydraulics Pumps	PCS	11000	11000
Hydraulics Products	PCS	50000	150000
Hydraulic system	PCS	125	NIL
Pneumatic	FT	27000	60000

Notes:-

Accessories # #

· # Based on acknowledgement fated 25.06.2004.

· # # Represents combined capacity of Pneumatics and CIC products and systems

· *represents combined capacity of hydraulics, fluid connector, filtration, Seals and Instrumentation products and systems

· * * based on double shift basis for 250 days in years

Particulars	Unit	Actual Production
CIC	Pcs	158762
Fluid Connectors	Pcs	18107
Filtration	Pcs	471
Hydraulics	Pcs/Ft	35783
Instrumentation	Pcs	2067
Pneumatics	Pcs	19864
Seals	Pcs	147

GENERAL INFORMATION

Customers :

Ø OEM’s

Ø Distributors

No. of Employees :

150 (Approximately)

Bankers :

City Bank, Fort Branch

Facilities :

Secured Loans	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
Hire Purchases Loan	0.994	1.486
Less : Unmatured Finance charges (Principal amount payable within year Rs. 0.336 million)	0.129	(0.269)
Total	0.865	1.217

Unsecured Loans	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
Short Term Loan from bank	152.643	147.909
Short Term Loan from others	100.000	122.500
Cash Credit	0.000	4.162
Total	252.643	274.571

Banking Relations :

Satisfactory

Auditors :

Name :

Lovelocks and lewes

Chartered Accountants

Address :

252, Veer Savarkar Marg, Shvaji Park, Mumbai – 400 028, Maharashtra

Holding Company :

Parke Hannifin Corporation USA

Associates/Subsidiaries :

· SFI Parent, USA

· Little Steamers LLC, USA

· Parker Hannifin Customers Support Inc., USA

· 265 Warwick LLC, USa

· Parker Royalty Partnership, USA

· Winco Enterprises Inc., USa

· McDonald Steel, USA

· DOmnick Hunter Canada Holdings, INC

· Xebec Inc., Canada

· Alenco (Holdings) Limited, UK

· Denison International Limited, UK

· Eurotherm Drives Limited, UK

· Denison Holdings Limited, UK

· Denison Hydraulics Limited, UK

· PH France Finance SAS, France

· S A Parker Hannifin NV, Belgium

· Parker Filtration and Separation BV, Netherlands

· PH Bermudas Luxembourg SCS, Luxembourg

· DH Hiross SPA, Italy

· Dynamic Seals INC

· KRC (wuxi) Company limited, China

· PH Connector Limited, Korea

· LLc Parker Hannifin Taiwan Limited, Taiwan

· Parker Sales (Ireland) Limited, Ireland

· Zander (Uk) Limited, UK

· Alkid Corp., USA

· NE Geese LLC, USA

· Sarl, Luxembourg

· Kenmore UK limited, UK

· Carouge, Switzerland

· Ultra Hydraulics Limited, UK

· Parker Hannifion GmbH and Company, KG, Germany

CAPITAL STRUCTURE

As on 30.09.2009:-

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity shares	Rs. 10/- each	Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13562820	Equity shares	Rs. 10/- each	Rs.135.628 millions

NoteS:

All of the above 11882987 shares are held by Parker Hannifin Corporation, USA the Holding company and its subsidiary

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		135.628	118.828	118.828
2] Share Application Money		236.977	16.800	0.000
3] Reserves & Surplus		95.645	175.261	144.206
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		468.250	310.889	263.034
LOAN FUNDS
1] Secured Loans		0.865	1.217	0.000
2] Unsecured Loans		252.643	274.572	76.394
TOTAL BORROWING		253.508	275.789	76.394
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		721.758	586.678	339.428
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		293.149	135.811	126.903
Capital work-in-progress		8.502	3.931	7.671
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		14.575	3.024	7.094
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	385.791	358.951	230.650
	Sundry Debtors	261.781	382.021	268.668
	Cash & Bank Balances	39.023	20.193	7.605
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	119.677	84.300	40.334
Total Current Assets		806.272	845.465	547.257
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	312.597	343.793	325.923
	Current Liabilities	63.538	48.761	21.369
	Provisions	24.605	8.999	2.205
Total Current Liabilities		400.740	401.553	349.497
Net Current Assets		405.532	443.912	197.760
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		721.758	586.678	339.428

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	1540.491	1618.123	1074.807
		Other Income	16.443	21.942	17.635
		TOTAL (A)	1556.934	1640.065	1092.442
Less	EXPENSES
		Cost of Goods Sold	1072.769	1119.147	779.543
		Personnel Expenses	178.447	145.026	65.130
		Other Expenditure	342.616	271.988	164.789
		TOTAL (B)	1593.832	1536.161	1009.462
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(36.898)	103.904	82.980
Less	FINANCIAL EXPENSES (D)		30.046	14.724	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(66.944)	89.180	82.980
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.020	17.445	5.693
	PROFIT BEFORE TAX (E-F) (G)		(86.964)	71.735	77.287
Less	TAX (I)		(7.348)	45.164	30.955
	PROFIT AFTER TAX (G-I) (J)		(79.616)	26.571	46.332
Add	Accumulated Profit		0.000	4.484	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		175.262	144.207	97.875
	BALANCE CARRIED TO THE B/S		95.646	175.262	144.207
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	13.220	7.573	NA
		Commission Earnings	0.143	4.858	NA
		Other Earnings	0.005	0.000	NA
	TOTAL EARNINGS		13.368	12.431	NA
	IMPORTS
		Finished Goods	323.455	291.592	NA
		Raw Materials	467.520	475.265	NA
		Capital Goods	0.000	1.446	NA
		Others	0.013	0.000	NA
	TOTAL IMPORTS		790.988	768.303	NA
	Earnings Per Share (Rs.)		(6.06)	2.24	3.90

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	(5.11)	1.62	4.24
Net Profit Margin (PBT/Sales)	(%)	(5.64)	4.43	7.19
Return on Total Assets (PBT/Total Assets}	(%)	(7.91)	7.29	11.22
Return on Investment (ROI) (PBT/Networth)		(0.18)	0.23	0.29
Debt Equity Ratio (Total Liability/Networth)		1.40	2.18	1.24
Current Ratio (Current Asset/Current Liability)		2.01	2.11	1.57

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In millions)

Particular	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- Small Scale Industrial Undertakings	3.896	0.000	0.000
- Others	308.701	343.793	325.923
Total	312.597	343.793	325.923

Operating Results:-

The performance of the company has been steadily improving. It has taken various steps to achieve higher volumes and to grow its income whilst controlling costs.

Fixed Assets:-

· Leasehold Land

· Buildings

· Plants and Machinery

· Air Conditioners

· Motor Vehicles

· Furniture and Fixtures

· Electrical Installation

· Office Equipment

website details:-

Company Profile

With annual sales exceeding $10 billion, subject is the world's leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The company's products are vital to virtually everything that moves or requires control, including the manufacture and processing of raw materials, durable goods, infrastructure development and all forms of transport. Traded on the New York Stock Exchange under the symbol "PH," Parker is strategically diversified, value-driven and well positioned for global growth as the industry consolidator and supplier of choice.

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.73.24
Euro	1	Rs.62.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	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.