MIRA INFORM REPORT

Report Date :

13.04.2012

IDENTIFICATION DETAILS

Name :	POCLAIN HYDRAULICS PRIVATE LIMITED
Registered Office :	R.S.No. 131/2 & 131/3, Kothapurinatham Road, Mannadipet Commune Panchayat Thiruvandarkoil, Pondicherry – 605102
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	01.12.2006
Com. Reg. No.:	18-002617
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U31200PY2006PTC002617
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture and export of hydraulic motors
No. of Employees :	No Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 400000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has been successful in wiping off the accumulated losses of previous years. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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 :	R.S.No. 131/2 & 131/3, Kothapurinatham Road, Mannadipet Commune Panchayat Thiruvandarkoil, Pondicherry – 605102, India
Tel. No.:	91-44-28224949
Fax No.:	Not Available
E-Mail :	Ganesan.p@poclain.hydraulics.com cassnroc@gamil.com modisangar@gmail.com

DIRECTORS

As on 18.04.2011

Name :

Mr. Jerome Bataille

Designation :

Director

Address :

43, Bis Rue De Paris, Compiene, France – 60200

Date of Birth/Age :

04.08.1953

Date of Appointment :

01.12.2006

DIN No.:

01784432

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31200PY2006PTC002617	POCLAIN HYDRAULICS PRIVATE LIMITED	Managing director	01-10-11	01-12-06	-	Active	NO

Name :

Mr. Laurent Bataille

Designation :

Director

Address :

71, Rue Du Moullin St Tron Senlis, France – 60300

Date of Birth/Age :

01.08.1955

Date of Appointment :

01.12.2006

DIN No.:

02041677

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.04.2011

Names of Shareholders	No. of Shares
Poclain Hydraulics S.A	999800
Poclain Hydraulics Industrie, S.A.S.	200
Total	10,000,00

As on 27.06.2011

Names of Allotees	No. of Shares
Poclain Hydraulics S.A, France	347,000
Total	347,000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
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 :	Manufacture and export of hydraulic motors
Products :	Item Code No	Product Description
	84129080	Hydraulics Motors
	84129030	Hydraulics Parts

PRODUCTION STATUS

31.12.2010

Particulars	31.03.2010
Licensed Capacity
Hydraulics Motors	1,93,500 No’s p.a
Hydraulics Motors Parts	3,98,687 No’s p.a
Installed Capacityp.a. on single-shift basis (units)
Hydraulics Motors	30,000 Nos p.a
Hydraulics Motors Parts	3,50,000 Nos p.a
Actual Production (Units)
Hydraulics Motors	6,508 No’s
Hydraulics Motors Parts (including Processed parts)	5,16,958 No’s

GENERAL INFORMATION

Customers :

Manufacture Company

No. of Employees :

Not Available

Bankers :

Not Available

(Rs. In Millions)

Facilities :

Unsecured Loan	As on 31.12.2010	As on 31.12.2009
Long Term Loans and Advances:
From Bank	15.566	34.301
Short Term Loans and Advances:
From Bank	93.598	111.762
External Commercial borrowing
From Parent company	137.862	63.716
Accured Interest on Loan from Banks	0.426	0.470
Accured Interest on ECb	3.624	0.536
Total	251.076	210.785

Banking Relations :
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountant
Address :	No.102, 2^nd Floor, Gangadhara Chetty Road, Bangalore – 560042, Karnataka, India
PAN.:	AAAFK7554R
Holding Company:	Poclain Hydraulics SA

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
17,500,00	Equity Shares	Rs.100/- each	Rs.175.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000,00	Equity Shares	Rs.100/- each	Rs.100.000 Millions

Note: Rs.0.999 Millions (Previous Year Rs. 0.859 Millions) Equity Share of Rs. 100 each, Fully paid are held by the holding company, Poclain Hydraulics, S.A France, and of the remaining 200 Equity Share of Rs. 100 each, fully paid, are held by Poclain Hydraulics Industries, S A, France.

After 18.04.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
17,500,00	Equity Shares	Rs.100/- each	Rs.175.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,470,00	Equity Shares	Rs.100/- each	Rs.34.700 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		100.000	86.000	46.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.087	0.000	0.000
4] (Accumulated Losses)		0.000	(44.495)	(14.348)
NETWORTH		102.087	41.505	31.652
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		251.076	210.785	165.715
TOTAL BORROWING		251.076	210.785	165.715
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		353.163	252.290	197.367
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		241.972	135.546	89.622
Capital work-in-progress		0.200	23.336	0.000
Capital Goods in Transit		9.475
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.692	58.887	88.992
	Sundry Debtors	51.525	24.836	45.716
	Cash & Bank Balances	1.262	5.890	50.360
	Loans & Advances	28.919	31.149	42.318
Total Current Assets		174.398	120.762	227.386
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.653	24.121	116.618
	Other Current Liabilities	6.737	2.741	2.503
	Provisions	0.492	0.492	0.520
Total Current Liabilities		72.882	27.354	119.641
Net Current Assets		101.516	93.408	107.745
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		353.163	252.290	197.367

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income
		Other Income
		TOTAL (A)	528.368	161.925	296.628
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	456.913	169.320	298.650
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		71.455	(7.395)	(2.022)
Less	FINANCIAL EXPENSES (D)		15.389	15.660	6.866
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		56.066	23.055	8.888
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.484	7.120	2.428
	PROFIT BEFORE TAX (E-F) (G)		46.582	30.175	11.316
Less	TAX (I)		0.000	0.028	2.878
	PROFIT AFTER TAX (G-I) (J)		46.582	30.147	14.194
	BALANCE CARRIED TO THE B/S		46.582	30.147	14.194
	IMPORTS
		Raw Materials	2.016	1.863	60.070
		Capital Goods	95.389	13.346	80.982
	TOTAL IMPORTS		97.305	15.209	141.052
	Earnings Per Share (Rs.)		52.46	(56.51)	(51.89)

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	8.81	18.61	4.78
Return on Total Assets (PBT/Total Assets}	(%)	26.71	24.98	4.97
Return on Investment (ROI) (PBT/Networth)		0.45	0.72	0.35
Debt Equity Ratio (Total Liability/Networth)		0.71	0.65	3.77
Current Ratio (Current Asset/Current Liability)		2.39	4.41	1.90

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
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	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Note: Registered office of the company has been shifted from Apeejay House, 29, Haddows Road, Nungambakkam, Chennai – 600006, Tamilnadu, India to the present address w.e.f 02.08.2011

BACKGROUND

The company was incorporated under the companies act, 1956 on the 1^st day of December 2006. The company was in the business of merchant export from 2007 and until it commenced its manufacturing activity in july 2008 as a 100% Export Oriented Until in Pondicherry.

The company has installed its Motor Assembly until in 2008 and Machining until in 2010. During the year 2010, it has three divisions of activity viz.

· Processing and exporting of hydraulic motor parts which are procured from domestic vendors,

· Processing, machining and exporting of hydraulic motors parts which are procured from domestic vendors and

· Assembly and exporting of hydraulic motors.

Some of the motor parts are imported from associated companied abroad which are owning the unique technology of poclain Group. These imported items are exclusive for the motor assembly activity. Imported parts together with material procured from domestic vendors are the input for the assembly of motors.

After the global economic slow down in 2009, the company has witnessed a robust business in 2010 and the increase was garadual month after month.

COMPANY PERFORMANCE

After the year of global economic slow down in 2009, the company has witnessed a robust business in 2010 and the increase was gradual month after month. The company has achieved a Sales turnover of Rs. 817.000 Millions as against Rs. 153.800 Millions in 2009. Except the cost of material and a very few items of expenses, most of the costs are fixed or semi-fixed in nature. There is a reduction in rent charges from Rs. 15.600 Millions to Rs. 2.500 Millions as the lease rent on the factory premises at Pondicherry is finished by 31^st Jan 2010 consequent upon the purchase of that property. The company has spent about Rs.8.000 Millions towards goods transport on air-freight which was almost nil for the year 2009. Even –thought the sales in 2010 was about 336% OF 2009, Administrative and operational costs are retained at the level of 2009. Net Foreign exchange gains of the year 2010 was Rs. 8.261 Millions. Which is inclusive of unrealized / notional/ provisional gain of Rs. 11.400 Millions. This unrealized gain is resulting from the re-installment of currency value as on 31 Dec 2010 for ECB Loan from corporate, Import from Calyon Bank and AR/AP. The company has earned a Net-profit of Rs. 46.600 Millions in 2010 as against a loss of Rs. 30.100 Millions in 2009.

CONTINGENT LIABILITY NOT PROVIDED FOR

Claims against the Company not acknowledged as debt:

Central Excise:

The Company is a registered 100% EOU and is entitled to certain concessions from the Government. The company has executed a surety bond which is a statutory requirement for an EOU and offered a bank guarantee of Rs. 2.000 Million to the Commissioner of Central Excise. There is no claim from the department.

Income Tax (TDS)

During the year 2010, the company has received a notice under section 201 (1) of the Income Tax Act, 1961 relating to Income Tax Deducted at Source (With-holding Tax) by the company for the financial years 2007-08 to 2009-10. The department has raised a demand for Rs.0.304 Million towards short deduction and interest payable. The company has accepted a liability of Rs. 0.103 Million and there is no further correspondence from the department for the balance amount.

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.51.20
UK Pound	1	Rs.81.50
Euro	1	Rs.67.15

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	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		30

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.