MIRA INFORM REPORT

Report Date :

11.08.2012

IDENTIFICATION DETAILS

Name :	THM HUADE HYDRAULICS PRIVATE LIMITED
Registered Office :	F-127, Phase –VIII, Focal Point, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.09.2007
Com. Reg. No.:	16-031378
Capital Investment / Paid-up Capital :	Rs. 0.100 Million
CIN No.: [Company Identification No.]	U28112PB2007PTC031378
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Hydraulic Machinery Parts.
No. of Employees :	25 (Approximately)

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 1000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Ms. Nameeta
Designation :	Marketing Head
Contact No.:	91-161-2722778
Date :	01.08.2012

LOCATIONS

Registered Office / Factory :	F-127, Phase –VIII, Focal Point, Ludhiana – 141010, Punjab, India.
Tel. No.:	91-161-2672778/ 777/ 2722778
Fax No.:	91-161-2672777/ 778
E-Mail :	bkg.majestic@gmail.com sales@thmhuade.com
Website :	www.thmhuade.com
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mrs. Alka Arora
Designation :	Director
Address :	178-A, Tagore Nagar, Ludhiana-141009, Punjab, India.
Date of Birth/Age :	21.06.1968
Date of Appointment :	19.09.2007
DIN No.:	01769042

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U28112PB2007PTC031378	THM HUADE HYDRAULICS PRIVATE LIMITED	Director	19/09/2007	19/09/2007	Active	NO
2	U29196PB1996PTC018794	PRIME HYDRAULICS AND PNEUMATICS PRIVATE LIMITED	Director	15/01/2008	15/01/2008	Active	NO

Name :	Mr. Mandeep S. Sidana
Designation :	Director
Address :	17-B, 3K Road, Ludhiana-142021, Punjab, India.
Date of Birth/Age :	02.07.1970
Date of Appointment :	19.09.2007
DIN No.:	01774767

KEY EXECUTIVES

Name :	Mr. Nameet
Designation :	Marketing Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Alka Arora	9000
Mandeep S. Sidana	500
Harish Chhabra	500
TOTAL	10000

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Hydraulic Machinery Parts.
Products :	Variable Displacement Axial Piston Pump Bent Axial Piston Pump and Motor Gear Pumps Hydraulic Power Pack Hydraulic Cylinder Filters and Accumulators Directional Contorl Valves Pressure Control Valves Cartridge Valves Flow Control Valves and Accessories Proportional Valves Spares and Repair of Pumps etc.
Imports :
Products :	Raw Materials
Countries :	· China
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :

· Afl Dachsar Private Limited

· Jianu Foreign Trade Company Limited

· Polyfolw Precision Private Limited

· TNT India Private Limited

· Solpack Systems

· Sealtech Company

· Yash Enterprises

· HTL Logistics India Private Limited

· Terch Hydraulics Service

· Triputi LPG Industries Limited

Customers :

Wholesalers and Retailers

· Automation Controls and Equipment

· Bajaj Steel Industries

· Dynamic Sales Corporation

· Hiflex Hydraulics Private Limited

· Indotools Sales and Services

· Mahavir Hydraulics Private Limited

· Northern Enterprises Private Limited

· Suvera Fluid Power Private Limited

· Sun Hydraulics Private Limited

No. of Employees :

25 (Approximately)

Bankers :

· ING Vysya Bank Limited, No.630, Gurudev Nagar, Ferozepur Road, Near Park Plaza Hotel, Ludhiana-14001, Punjab, India

· HDFC Bank

· Indusind Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Indusind Bank O/D Account (Against FDR)	0.000	0.784
HDFC Bank Car Loan	0.346	0.000
Bajaj Auto Finance Limited	0.000	0.005
TOTAL	0.346	0.789
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Promoters, Directors and Their Relatives
Sh. Amoj Kumar	1.133	0.083
TOTAL	1.133	0.083

Banking Relations :	--
Auditors :
Name :	Parshotam and Associates Chartered Accountant
Address :	10-B, Udham Singh Naga, Ludhiana-141001, Punjab, India
PAN No.:	AAIFP6230H
Group companies where common control exists :	· Prime Hydraulics and Pneumatics · Tania Hydraulics Machines

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.384	0.170	0.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.484	0.270	0.200
LOAN FUNDS
1] Secured Loans		0.346	0.789	0.802
2] Unsecured Loans		1.133	0.083	0.000
TOTAL BORROWING		1.479	0.872	0.802
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1.963	1.142	1.002
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.847	0.119	0.015
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.115	0.094	0.100
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.590	4.053	0.000
	Sundry Debtors	5.711	4.096	0.956
	Cash & Bank Balances	1.718	1.170	1.042
	Other Current Assets	0.000	0.000	4.173
	Loans & Advances	1.261	2.744	0.607
Total Current Assets		14.280	12.063	6.778
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.843	6.965	3.335
	Other Current Liabilities	8.437	4.170	2.557
	Provisions	0.000	0.000	0.000
Total Current Liabilities		13.280	11.135	5.892
Net Current Assets		0.100	0.928	0.886
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1.963	1.142	1.002

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	21.032	22.981	13.698
		Other Income
		TOTAL	21.032	22.981	13.698
Less	EXPENSES
		Office Expenses
		Administrative Expenses	20.448	22.631	13.524
		Advertising Expenses
		TOTAL	20.448	22.631	13.524
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.584	0.350	0.174
Less/ Add	DEPRECIATION/ AMORTISATION		0.062	0.004	0.001
	PROFIT BEFORE TAX		0.522	0.346	0.173
Less	TAX		0.308	0.276	0.075
	PROFIT AFTER TAX		0.214	0.070	0.098
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.170	0.100	0.002
	BALANCE CARRIED TO THE B/S		0.384	0.170	0.100
	IMPORTS
		Raw Materials, Packaging Material and Store and Spare Parts	14.738	0.000	0.000
	TOTAL IMPORTS		14.738	0.000	0.000
	Earnings Per Share (Rs.)		21.44	6.95	9.83

Particulars	31.03.2012
Sales Turnover (Approximately)	35.000

Expected Sales (2012-2013) : Rs.40.000 Millions

The above information has been parted by Ms. Nammeda.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.02	0.30	0.72
Return on Total Assets (PBT/Total Assets}	(%)	3.42	2.82	2.55
Return on Investment (ROI) (PBT/Networth)		1.08	1.28	0.87
Debt Equity Ratio (Total Liability/Networth)		30.49	44.47	33.47
Current Ratio (Current Asset/Current Liability)		1.08	1.08	1.15

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
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	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FORM 8

Corporate identity number of the company	U28112PB2007PTC031378
Name of the company	THM HUADE HYDRAULICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	F-127, Phase –VIII, Focal Point, Ludhiana – 141010, Punjab, India.
This form is for	Creation of charge
Type of charge	· Book debts · Floating charge · Others
Particular of charge holder	ING Vysya Bank Limited, No.630, Gurudev Nagar, Ferozepur Road, Near Park Plaza Hotel, Ludhiana-14001, Punjab, India
Nature of instrument creating charge	Facility cum hypothecation agreement
Date of instrument Creating the charge	14.07.2011
Amount secured by the charge	Rs. 6.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest SOD : IVBR + 3.55% LC/FLC : Commission on 1.00% Terms of repayment SOD : Payable on demand Margin SOD : N.A. Extent and operation of the charge SOD limit - Rs. 1.000 Million LC/FLC limit - Rs.5.000 Millions Total Exposure - Rs.6.000 Millions Exclusive charge on Hypothecation of all kind of Hydraulie Pharmatic Machine Parts and Engg. Goods and Book Debts both present and future. Other NIL
Short particulars of the property charged (Including location of the property)	Exclusive charge on Hypothecation of all kind of Hydraulie Pharmat which are already stored and to be stored from to time in that shop premises bearing F-127, Focal Point, Phase-VIII, Ludhiana, Punjab Exclusive charge on Hypothecation of Book Debts both present and future.

FIXED ASSETS

· Machinery

· Vehicles

· Misc Fixed Assets

· Computer

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. 55.34
UK Pound	1	Rs. 86.45
Euro	1	Rs. 68.04

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	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	NO
--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.