MIRA INFORM REPORT

Report Date :

15.10.2011

IDENTIFICATION DETAILS

Name :	DEEPAK HYDRAULICS (INDIA) PRIVATE LIMITED
Registered Office :	A-27/3, Mayapuri Industrial Area, Phase - 1, New Delhi – 110 064
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.11.1995
Com. Reg. No.:	55-74003
Capital Investment / Paid-up Capital :	Rs.0.500 million
CIN No.: [Company Identification No.]	U74899DL1995PTC074003
TAN No.: [Tax Deduction & Collection Account No.]	DELD03785F
PAN No.: [Permanent Account No.]	AAACD5559N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Scientific and Engineering Instruments
No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 2000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. 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.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Vidya Sagar
Designation :	Director
Contact No.:	91-9810200980
Date :	05.10.2011

LOCATIONS

Registered Office/ Factory :	A-27/3, Mayapuri Industrial Area, Phase - 1, New Delhi – 110 064, India
Tel. No.:	91-11-28116038 / 25137758
Mobile No.:	91-9810200980 (Mr. Vidya Sagar)
Fax No.:	91-11-28117758
E-Mail :	skgass@airtelbroadband.in deepakhydraulics@gmail.com email4dhl@yahoo.co.in
Website :	http://www.deepakhydraulics.com
Area :	358 sq. yards
Location :	Owned

DIRECTORS

As on : 28.09.2010

Name :	Mr. Banwari Lal Sharma
Designation :	Managing Director
Address :	C – 216, Hari Nagar, New Delhi – 110064, Delhi, India
Date of Birth/Age :	08.05.1941
Qualification :	B.Com
Date of Appointment :	15.04.2005
DIN No.:	00169306
Name :	Ms. Narbada Devi
Designation :	Director
Address :	C – 216, Hari Nagar, New Delhi – 110064, Delhi, India
Date of Birth/Age :	18.07.1946
Qualification :	SSC
Date of Appointment :	20.11.1995
DIN No.:	00168754
Name :	Mr. Vidya Sagar
Designation :	Whole Time Director
Address :	C – 216, Hari Nagar, New Delhi – 110064, Delhi, India
Date of Birth/Age :	19.11.1971
Qualification :	B.Com
Date of Appointment :	20.11.1995
DIN No.:	00169204
Name :	Mr. Suresh Kumar
Designation :	Whole Time Director
Address :	C – 216, Hari Nagar, New Delhi – 110064, Delhi, India
Date of Birth/Age :	19.09.1963
Qualification :	HSC
Date of Appointment :	20.11.1995
DIN No.:	00168579

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 28.09.2010

Names of Shareholders	No. of Shares
Vidya Sagar	22500
Suresh Kumar	22500
Narbada Devi	4800
Banwari Lal Sharma	100
Narayanan Sankara	100
Total	50000

As on : 28.09.2010

Category	Percentage
Directors or relatives of directors	99.80
Other top fifty shareholders	0.20
Total	100.0

BUSINESS DETAILS

Line of Business :

Manufacturer of Scientific and Engineering Instruments

Products :

· Engineering Equipments

· Compression Testing Machines

· Scientific Equipments

Product Description	Item Code No. (ITC Code)
Testing Machine	902480
Parts	902490

Exports :

Products :

Engineering Instruments

Countries :

· Dubai

· UK

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Compression Testing Machine	Pieces	174
Spare Parts	Pieces	680

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

15 (Approximately)

Bankers :

· Syndicate Bank, Mayapuri, New Delhi, India

· ICICI Bank Limited, New Delhi, India

· Citi Bank

· HDFC Bank, Mayapuri Branch, New Delhi, India

· Standard Chartered Bank

Facilities :

Particulars	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Secured Loan
Standard Chartered Bank – OD A/c	4.978	1.214
Citi Bank	0.197	0.478
ICICI Bank Limited – Car Loan	0.000	0.265
Total	5.175	1.957

Particulars	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Unsecured Loans
Vidya Sagar	0.550	0.550
Suresh Kumar	0.555	0.555
Total	1.105	1.105

Banking Relations :	--
Auditors :
Name :	S. K. Gulati and Associates Chartered Accountants
Address :	A – 3, Rajouri Garden, New Delhi – 110027, Delhi, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Share	Rs.10/- Each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Share	Rs.10/- Each	Rs.0.500 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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.073	0.035	0.068
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.573	0.535	0.568
LOAN FUNDS
1] Secured Loans		5.175	1.957	3.121
2] Unsecured Loans		1.105	1.105	1.105
TOTAL BORROWING		6.280	3.062	4.226
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6.853	3.597	4.794
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.719	0.911	1.104
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	5.526	2.797	3.223
	Sundry Debtors	2.770	1.915	2.075
	Cash & Bank Balances	0.067	0.136	0.036
	Other Current Assets	0.022	0.022	0.023
	Loans & Advances	1.234	0.312	0.772
Total Current Assets		9.619	5.182	6.129
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.133	1.264	1.632
	Other Current Liabilities	1.315	1.170	0.748
	Provisions	0.037	0.062	0.059
Total Current Liabilities		3.485	2.496	2.439
Net Current Assets		6.134	2.686	3.690
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6.853	3.597	4.794

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	13.351	14.549	13.828
		Other Income
		TOTAL	13.351	14.549	13.828
Less	EXPENSES
		Office Expenses	13.073	14.258	13.562
		Administrative Expenses
		Advertising Expenses
		TOTAL	13.073	14.258	13.562
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.278	0.291	0.266
Less/ Add	DEPRECIATION/ AMORTISATION		0.203	0.261	0.239
	PROFIT/LOSS BEFORE TAX		0.075	0.030	0.027
Less	TAX		0.037	0.062	0.059
	PROFIT/LOSS AFTER TAX		0.038	(0.032)	(0.032)
	Earnings Per Share (Rs.)		0.76	(0.64)	(0.64)

Particulars	31.03.2011
Sales Turnover (Approximately)	14.800

Expected Sales (2011-2012) : Rs.18.000 Millions

The above information has been parted by Mr. Vidya Sagar

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.28	(0.22)	(0.23)
Return on Total Assets (PBT/Total Assets}	(%)	0.72	0.49	0.37
Return on Investment (ROI) (PBT/Networth)		0.13	0.06	0.05
Debt Equity Ratio (Total Liability/Networth)		21.66	10.39	18.23
Current Ratio (Current Asset/Current Liability)		2.76	2.08	2.51

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last three years	YES
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	NO
14.	Estimation for coming financial year	YES
15.	Capital in the business	YES
16.	Details of sister concerns	--
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	NO
25.	Conduct of the banking account	--
26.	Buyer visit details	--
27.	Financials, if provided	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

NOTE

Registered Office of the company has been shifted from A-27/3, Mayapuri Industrial Area, Phase-II, New Delhi – 110064, Delhi, India to the present address w.e.f. 30.06.2009

FINANCIAL RESULTS

The Balance Sheet and Profit and Loss Account have been in the hands and they take them as received. During the year the turnover of the company was Rs. 13.351 millions and the company earned Net profit of Rs. 0.075 millions after providing depreciation of Rs. 0.202 millions on fixed assets. The company has provided Rs. 0.037 millions towards Income tax. The directors hope to deliver better results in the years to come.

Bankers Charges Report as per Registry

Name of the company	DEEPAK HYDRAULICS INDIA PRIVATE LIMITED
Presented By	Syndicate Bank, Mayapuri, New DelhI
1) Date and description of instrument creating the change	Hypothecation deed for goods and monies receivables etc. dated 30.10.2000
2) Amount secured by the charge/amount owing on the securities of charge	Rs.1.000 Million
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	Hypothecation of stocks of raw materials, semi finished and finished goods etc, now lying or hereafter stored at Company’s premises at F – 135, Mayapuri Industrial Area, Phase – II, New Delhi or at any other place including those in transit and all book debts, investments, deposits, outstanding, monies and receivables both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	The above is to secure ODH limit of Rs. 1.000 Millions granted to the company. Interest is to be charged @ 3.50 % p.a. over PLR of the Bank with a minimum of 16.25 % p.a. with an overdue interest of 2% p.a. over and above the agreed rate to be charged in case of default or at such rate as may be specified by the Bank from time to time. Margin: 25 % or as may be stipulated by the Bank from time to time. Payable on Demand.
5) Name and Address and description of the person entitled to the charge.	Syndicate Bank, Mayapuri, New Delhi
6) Date and brief description of instrument modifying the charge	Deed of hypothecation of machinery dated 30.10.2000
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.	The ODH limit of Rs.1.000 million stands additionally secured by all machineries of the company in the deed plated and feted at company’s premises at F-135, Mayapura Industrial Area, Phase-II, New Delhi, Delhi, India and also any other machineries that the borrower may bring and fit in the said premises hereafter. Other terms and conditions remained the same.

Name of the company	DEEPAK HYDRAULICS INDIA PRIVATE LIMITED
Presented By	SYNDICATE BANK, MAYAPURI, NEW DELHI
1) Date and description of instrument creating the change	Composite Hypothecation Agreement dated 10.12.2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.500 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	Hypothecation of stock of Scientific and Engineering Instruments – Compression Testing Machines now lying or hereafter stored at Company’s premises at A – 27/3, Mayapuri Industrial Area, phase – I, [Near Community Centre], New Delhi – 110064 or at any other place including those in transit and all the borrower’s present and future debts outstanding monies, receivables, claims bills etc .
4) Gist of the terms and conditions and extent and operation of the charge.	The above is to secure all amounts payable under SOD limit of Rs. 1.500 Millions carrying interest @ PLR + 3 % p.a. or at such rate as may be specified by the Bank from time to time and all other interests, costs, charges, expenses etc.
5) Name and Address and description of the person entitled to the charge.	Syndicate Bank, Mayapuri, New Delhi
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

FIXED ASSETS

· Machinery

· Generator

· Furniture and Fixture

· Scooter Motor Cycle

· Air Conditioner

· Water Cooler

· Computer

· Communication Equipment

· Lifesaver Equipment

· Fan

· Inverter

· Cellular Phone

· Fire Extinguisher

· Cycle

· CCTV Camera

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.49.07
UK Pound	1	Rs.77.42
Euro	1	Rs.67.72

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	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.