MIRA INFORM REPORT

Report Date :

24.10.2011

IDENTIFICATION DETAILS

Name :	MAKINO INDIA PRIVATE LIMITED (w.e.f. 05.10.2004)
Formerly Known As :	MAKINO MACHINE TOOL (INDIA) PRIVATE LIMITED
Registered Office :	No. 11, Export Promotion Industrial Park, K. R. Puram, Bangalore – 560 066, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.06.2001
Com. Reg. No.:	08-029127
Capital Investment / Paid-up Capital :	Rs.19.701 millions
CIN No.: [Company Identification No.]	U29299KA2001PTC029127
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Horizontal Machining Centers, Vertical Machining Centers, Graphite Machining Sinker EDM Wire EDM, Module M.M.C.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Makino Asia Private Limited, Singapore. It is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Payments are reported to be regular 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 – 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

LOCATIONS

Registered Office :	No. 11, Export Promotion Industrial Park, K. R. Puram, Bangalore – 560 066, Karnataka, India
Tel. No.:	91-80-28419500 / 67419500
Fax No.:	91-80-28410748 / 67419523
E-Mail :	biradar@makino.co.in info@makino.co.in
Website :	http://www.makino.co.in
Manufacturing and Sales Office 1 :	Unit 4, 4^th Floor, Salzburg Square, 107, Harrington Road, Chennai – 600031, Tamilnadu, India
Tel. No.:	91-44-28361883 / 28362039
Fax No.:	91-44-28361883
E-Mail :	infochn@makino.co.in
Manufacturing and Sales Office 2 :	192-B, Sector 4, IMT, Manesar (NCR Delhi), Gurgaon – 122050, Haryana, India
Tel. No.:	91-124-4652200 (Board)
Fax No.:	91-124-4652230
E-Mail :	infidel@makino.co.in
Manufacturing and Sales Office 3 :	Plot No. 25/26, F- Block, Rajangaon MIDC, Talika, Pune – 412210, Maharashtra, India
Tel. No.:	91-2138-673600 (Board)
Fax No.:	91-2138-673623
E-Mail :	infopun@makino.co.in
Sales Office :	Shop No. 43, Vasant Smruti, Thakur Complex, Kandivali (East), Mumbai – 400101, Maharashtra, India
Tel. No.:	91-22-42648484 / 28852456
E-Mail :	infomum@makino.co.in

DIRECTORS

As on 20.09.2010

Name :

Mr. K S Sankaran

Designation :

Director

Address :

32, Hert Ford Road, Singapore – 219400, Singapore

Date of Birth/Age :

23.06.1949

Date of Appointment :

14.06.2001

DIN :

02296912

Name :

Mr. Fumiyoshi Matsubara

Designation :

Director

Address :

4-1101-7-613, Matsumi-Cho Kanagawa-Town, Vokohama-Town, Kanagawa Pre, Japan

Date of Birth/Age :

01.07.1958

Date of Appointment :

24.05.2004

DIN :

02079567

Name :

Mr. D. A Biradar

Designation :

Whole-time Director

Address :

Basavashri NO.179, Kas Layout (BOOHBCS), 41^st Main 4^th Cross, BTM II Stage, Bangalore – 560068, Karnataka, India

Date of Birth/Age :

01.06.1955

Date of Appointment :

03.05.2007

DIN :

01479710

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29299KA2001PTC029127	Makino India Private Limited	Whole-time director	04-09-07	03-05-07	Active	NO

Name :

Mr. Raghava Badhya T V

Designation :

Whole-time Director

Address :

2^nd main, 3^rd A Cross, BSK, 3^rd Stage, 3^rd Phase, 2^nd Block, Bangalore – 560085, Karnataka, India

Date of Birth/Age :

14.04.1965

Date of Appointment :

25.05.2006

DIN :

00458887

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29299KA2001PTC029127	Makino India Private Limited	Director	27-07-06	25-05-06	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2010

Names of Shareholders	No. of Shares
Makino Asia Private Limited, Singapore	1970049
Makino Resource Development Private Limited, Singapore	1
Total	1970050

As on 20.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Horizontal Machining Centers, Vertical Machining Centers, Graphite Machining Sinker EDM Wire EDM, Module M.M.C.

GENERAL INFORMATION

Customers :

· Ashok Leyland Limited

· Bajaj Auto Limited

· Bharat Electronics Limited

· Bosch Limited

· BPL Limited

· HCL Infosystems Limited

No. of Employees :

Not Available

Distributors :

· S and T Engineers, Coimbatore

· Sreeven Technologies, Hyderabad

· Merlion Tools, Ludhiana

· Sanjay Tools and Accessories Private Limited, Pune

· Accura Machine Tools, Mumbai

Bankers :

Not Available

Facilities :

Unsecured Loan (Rs. in million)	31.03.2010	31.03.2009
Due to holding company (amounts payable within 1 year- Rs.48.971 millions; previous year 43.973 millions)	802.564	821.255
Total	802.564	821.255

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
PAN No.:	AACFD3771D
Holding Company :	Makino Asia Pte Limited, Singapore

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1970050	Equity Shares	Rs.10/- each	Rs.19.701 millions

Note :

· The entire issued share capital is held by the holding company Makino Asia Pte Limited, Singapore and its nominee

· Of the above 1944000 equity shares have been issued for consideration other than cash

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		19.701	19.701	19.701
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		480.846	419.259	352.279
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		500.547	438.960	371.980
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		802.564	821.255	694.714
TOTAL BORROWING		802.564	821.255	694.714
DEFERRED TAX LIABILITIES		44.488	33.994	52.909
TOTAL		1347.599	1294.209	1119.603
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		935.118	858.180	730.857
Capital work-in-progress		2.516	74.001	50.042
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	248.863	351.414	282.840
	Sundry Debtors	265.538	397.037	398.766
	Cash & Bank Balances	351.076	253.813	203.334
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	97.314	72.343	146.584
Total Current Assets		962.791	1074.607	1031.524
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	418.503	543.824	478.839
	Other Current Liabilities	67.947	86.997	62.827
	Provisions	66.376	81.758	151.154
Total Current Liabilities		552.826	712.579	692.820
Net Current Assets		409.965	362.028	338.704
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1347.599	1294.209	1119.603

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	756.744	1097.548	1025.388
		Other Income	94.233	26.010	18.463
		TOTAL	850.977	1123.558	1043.851
Less	EXPENSES
		Increase / Decrease in inventory		(56.150)	64.219
		Material Consumed		589.844	440.049
		Employee Remuneration and benefits		160.122	145.077
		General and Administration Expenses		237.518	139.291
		Selling and Marketing Expenses		32.175	21.530
		TOTAL	755.997	963.509	810.166
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(Including Depreciation)	160.049	233.685
Less/ Add	DEPRECIATION/ AMORTISATION			77.485	61.198
	PROFIT BEFORE TAX		94.980	82.564	172.487
Less	TAX		33.393	15.584	60.273
	PROFIT AFTER TAX		61.587	66.980	112.214
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	352.279	240.680
Less	TRNSITIONAL ADJUSTMENT ARISING OUT OF EMPLOYEE BENEFIT		NA	0.000	0.615
	BALANCE CARRIED TO THE B/S		NA	419.259	352.279
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Goods Exported	133.409	293.258	197.626
		FOB value of Service Exported	19.028	89.856	52.108
		Commission Earned	67.746	115.534	158.487
		Misc. Income	3.794	10.607	0.000
	TOTAL EARNINGS		223.977	509.255	408.221
	Earnings Per Share (Rs.)		31.26	34.00	56.96

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.24	5.96	10.75
Net Profit Margin (PBT/Sales)	(%)	12.55	7.52	16.82
Return on Total Assets (PBT/Total Assets}	(%)	5.00	4.27	9.79
Return on Investment (ROI) (PBT/Networth)		0.19	0.19	0.46
Debt Equity Ratio (Total Liability/Networth)		2.71	3.49	3.73
Current Ratio (Current Asset/Current Liability)		1.74	1.51	1.49

LOCAL AGENCY FURTHER INFORMATION

Financial and Operational Performance :

The recent economic recession worldwide has affected all the sectors. Even the company has not been left untouched. The company’s business has also been affected adversely; despite the company has shown overall growth. The satisfactory performance of the company during the year. The company has taken serious steps to undertake cost reduction during the year. With the recording of satisfactory sales, the confidence level has increased and has put the management team in forward position while taking important business decisions.

The total revenue for the year was Rs.850.977 millions (Previous Year Rs.1123.558 millions)

Sales

The Company has achieved export sales of Rs.140.167 millions for the current year as compared to last year's Rs.299.098 millions

Expenditure

The Expenditure (Including Depreciation) for the current year was Rs.755.997 millions (89%), ((Previous Year Rs. 1,040.993 millions (92%)), resulting in Net Profit of Rs.61.587 millions (7%) ((Previous Year Rs. 66.979 millions (6%)) after providing for Taxes including Deferred Taxes and Fringe Benefit Taxes.

Profit

The Board has noted the company's profit before taxes for this year Rs. 94.980 millions (Previous year Rs. 82.564 millions)

Business Strategies / Outlook

The business strategies are well structured and continuously reviewed. Slim machines are capable of capturing small component market and are considered as the 'Manufacturing Drivers'. The Company has sold 39 machines for a total value of Rs.153.621 millions during the year 2009-10. This has given a positive indication that more machines of this category will get the attention of the market in the coming years too.

While undertaking the marketing of the products and rendering of services, the company always keeps 'Customer Satisfaction' as the prime objective which drives the company to cherish its long term goals and keep forward. Further the company would also concentrate on optimizing the operational cost to enhance the level of profit without compromising the quality of the products delivered.

The global economy of the field in which the company is engaged and the market dynamics are favorable and therefore the company will improve the marketing techniques further to encash these favorable business environment. However recent global recession and economic slow down in lndia has made management to work out strategic cost and productivity optimization including relocation of Slim machine production from lndia to Singapore to optimize the group production abilities, in the current year, under review .However this decision will be again reviewed , if business dynamics , and call for rethinking.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Electrical Fittings

· Tools and Jigs

· Office Equipments

· Furniture and Fittings

· Vehicles

· Computers

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.50.07
UK Pound	1	Rs.79.15
Euro	1	Rs.69.04

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	6
--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		50

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.