MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	CARL SCHMALE GMBH & CO.
Registered Office :	Lindhorststr. 12 D 48607 Ochtrup Post Box: 1341, D 48602 Ochtrup
Country :	Germany
Financials (as on) :	31.12.2011
Date of Incorporation :	01.01.1962
Com. Reg. No.:	HRA 1379
Legal Form :	Ltd partnership with priv. ltd. company as general partner
Line of Business :	Wholesale of machinery for the textile industry and of sewing and knitting machines
No. of Employees :	26

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Germany	A1	A1

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

GERMANY - ECONOMIC OVERVIEW

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 6.0% in 2011. GDP contracted 5.1% in 2009 but grew by 3.6% in 2010, and 2.7% in 2011. The recovery was attributable primarily to rebounding manufacturing orders and exports - increasingly outside the Euro Zone. Germany's central bank projects that GDP will grow 0.6% in 2012, a reflection of the worsening euro-zone financial crisis and the financial burden it places on Germany as well as falling demand for German exports. Domestic demand is therefore becoming a more significant driver of Germany's economic expansion. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's budget deficit to 3.3% in 2010, but slower spending and higher tax revenues reduce the deficit to 1.7% in 2011, below the EU's 3% limit. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela Merkel announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its energy and 46% of its base-load electrical production.

Source : CIA

Company name and address

Carl Schmale GmbH & Co.

Company Status: active

Lindhorststr. 12

D 48607 Ochtrup

Post Box:

1341, D 48602 Ochtrup

Telephone:02553/7401

Telefax: 02553/7439

Homepage: www.schmale.com

E-mail: info@schmale.com

Registration data

LEGAL FORM Ltd partnership with priv. ltd. company as

general partner

Date of foundation: 01.01.1962

Begin of business

activities: 17.12.1969

Registered on: 17.12.1969

Register of

companies: Local court 48565 Steinfurt

under: HRA 1379

Total cap. contribution

EUR 173,839.24

Limited partner

Carl Schmale

Canisiusstr. 3

D 48607 Ochtrup

born: 02.07.1952 in Ochtrup

Share: EUR 173,839.24

General partner:

Verwaltungsgesellschaft Schmale,

Gesellschaft mit beschränkter Haftung

Lindhorststr. 12

D 48607 Ochtrup

Legal form: Private limited company

Share capital: EUR 25,564.59

Registered on: 21.12.1973

Reg. data: 48565 Steinfurt, HRB 1172

Shareholder:

Carl Schmale

Canisiusstr. 3

D 48607 Ochtrup

born: 02.07.1952 in Ochtrup

Share: EUR 25,564.59

Manager:

Carl Schmale

Canisiusstr. 3

D 48607 Ochtrup

born: 02.07.1952 in Ochtrup

Profession: graduate engineer

Marital status: married

BUSINESS ACTIVITIES

Main industrial sector

46640 Wholesale of machinery for the textile industry and of sewing and knitting machines

FINANCIAL INFORMATION

Payment experience: within agreed terms

Negative information:We have no negative information at hand.

Balance sheet year: 2011

REAL ESTATE

Type of ownership: Tenant

Address Lindhorststr. 12

D 48607 Ochtrup

Real Estate of: Verwaltungsgesellschaft Schmale,

Gesellschaft mit beschränkter Haftung

Type of ownership: Tenant

Address Lindhorststr. 12

D 48607 Ochtrup

Land register documents were not available.

BANKERS

VERBUNDSPARKASSE EMSDETTEN OCHTRUP, OCHTRUP

Sort. code: 40153768, BIC: WELADED1EMS

DEUTSCHE BANK, RHEINE

Sort. code: 40370079, BIC: DEUTDE3B403

VOLKSBANK, OCHTRUP

Sort. code: 40164618, BIC: GENODEM1OTR

FINANCIAL FIGURES

Turnover: 2010 EUR 7,500,000.00

Ac/ts receivable: EUR 2,362,333.00

Liabilities: EUR 1,758,972.00

Employees: 26

The aforementioned business figures may partly be estimated

information based on average values in the line of business.

BALANCE SHEETS

Balance sheet ratios 01.01.2011 - 31.12.2011

Equity ratio [%]: 5.58

Liquidity ratio: 1.76

Equity ratio

The equity ratio indicates the portion of the equity as compared

to the total capital. The higher the equity ratio, the better the

economic stability (solvency) and thus the financial autonomy of

a company.

Liquidity ratio

The liquidity ratio shows the proportion between adjusted

receivables and net liabilities. The higher the ratio, the lower

the company's financial dependancy from external creditors.

Type of balance

sheet: Company balance sheet

Financial year: 01.01.2011 - 31.12.2011

ASSETS EUR 3,130,144.36

Fixed assets EUR 21,413.00

Tangible assets EUR 21,253.00

Other / unspecified tangible assets EUR 21,253.00

Financial assets EUR 160.00

Other / unspecified financial assets EUR 160.00

Current assets EUR 3,080,948.33

Stocks EUR 299,773.63

Accounts receivable EUR 2,362,332.98

Other debtors and assets EUR 2,362,332.98

Liquid means EUR 418,841.72

Remaining other assets EUR 27,783.03

Accruals (assets) EUR 10,603.03

Deferred taxes (assets) EUR 17,180.00

LIABILITIES EUR 3,130,144.36

Shareholders' equity EUR 173,839.23

Capital EUR 173,839.23

Provisions EUR 1,197,333.00

Liabilities EUR 1,758,972.13

Other liabilities EUR 1,758,972.13

Unspecified other liabilities EUR 1,758,972.13

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.08
UK Pound	1	Rs.89.53
Euro	1	Rs.72.77

INFORMATION DETAILS

Report Prepared by :

PRL

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	--

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%)

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.