MIRA INFORM REPORT

Report Date :

31.01.2012

IDENTIFICATION DETAILS

Name :	DECCAN HYDRAULICS PRIVATE LIMITED
Registered Office :	No. 38, KIADB Industrial Area, Dasarahosahalli, Bangarpet – 563114, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.05.2000
Com. Reg. No.:	08-027058
Capital Investment / Paid-up Capital :	Rs.30.652 Millions
CIN No.: [Company Identification No.]	U33127KA2000PTC027058
TAN No.: [Tax Deduction & Collection Account No.]	BLRD01511G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hydraulic Components and Piping Assemblies.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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. 38, KIADB Industrial Area, Dasarahosahalli, Bangarpet – 563114, Karnataka, India
Tel. No.:	91-8153-263078/263668/269758
Fax No.:	91-8153-269238
E-Mail :	accounts@deccanhydraulics.com decanhyd@sancharnet.in sales@deccanhydraulics.com
Website :	www.decanhydraulics.com
Area :	60000 Sq. ft
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Ramakrishnappa Gangappa Bevahalli

Designation :

Managing director

Address :

378, Balaji Nilaya, DK Halli, Bangarpet, Kolar– 563114, Karnataka, India

Date of Birth/Age :

12.02.1952

Qualification :

DME

Date of Appointment :

12.05.2000

DIN No.:

00439837

Other Directorship :

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
U33127KA2000PTC027058	Deccan Hydraulics Private Limited	Managing director	12/05/2000	12/05/2000	-	Active	NO
U01222KA1990PTC011220	Deccan Hybrid Cultivations Private Limited	Director	16/01/2003	16/01/2003	-	Active	NO
U63030KA2010PTC053495	Deccan Rashar Translogistics Private Limited	Director	5/05/2010	5/05/2010	-	Active	NO

Name :

Mr. Shashikanth Gangappa

Designation :

Whole-time director

Address :

378, Balaji Nilaya, DK Halli, Bangarpet, Kolar– 563114, Karnataka, India

Date of Birth/Age :

25.12.1965

Qualification :

DME

Date of Appointment :

12.05.2000

DIN No.:

01773503

Other Directorship :

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
U33127KA2000PTC027058	Deccan Hydraulics Private Limited	Whole-time director	12/05/2000	12/05/2000	-	Active	NO
U01222KA1990PTC011220	Deccan Hybrid Cultivations Private Limited	Director	16/01/2003	16/01/2003	-	Active	NO
U63030KA2010PTC053495	Deccan Rashar Translogistics Private Limited	Director	5/05/2010	5/05/2010	-	Active	NO

Name :

Mr. Raghu Gangappa

Designation :

Director

Address :

378, Balaji Nilaya, DK Halli, Bangarpet, Kolar– 563114, Karnataka, India

Date of Birth/Age :

22.06.1970

Qualification :

B. Sc

Date of Appointment :

12.05.2000

DIN No.:

00439864

Other Directorship :

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
U33127KA2000PTC027058	Deccan Hydraulics Private Limited	Director	12/05/2000	12/05/2000	-	Active	NO
U63030KA2010PTC053495	Deccan Rashar Translogistics Private Limited	Director	5/05/2010	5/05/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
B G Ramkrishnappa	2145640
G Shashikanth	613039
G Raghu	306520
Mahesh Chandra Manilal HUF	1
Total	3065200

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Hydraulic Components and Piping Assemblies.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Hydraulic Components and Piping Assemblies	8412

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank

· HDFC Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Secured Loans from Banks and Financial Institutions	188.461	183.695
Total	188.461	183.695
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Unsecured Loans from Mahesh Chandra	1.000	0.000
Total	1.000	0.000

Financial Institution :	Karnataka State Financial Corporation, S.L.N. Complex, Near K.S.R.T.C Bus Stand, M.B. Road, Kolar – 560001, Karnataka, India
Banking Relations :	--
Auditors :
Name :	Vijay Raja and Company Chartered Accountants
Address :	No. 322, 10^th A Main, 3^rd Block, Jayanagar, Bangalore – 560011, Karnataka, India
Tel. No.:	91-80-22442295
Fax No.:	91-80-22442295
E-Mail :	vijayrajaco@yahoo.com
PAN.:	ABFPR4931D

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5180000	Equity Shares	Rs.10/- each	Rs.51.800 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3065200	Equity Shares	Rs.10/- each	Rs.30.652 Millions

(Out of above, 200000 shares were issued for consideration other than cash, pursuant to agreement to takeover dated 01.06.2000)

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		30.652	30.652	30.652
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		94.367	83.150	67.588
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		125.019	113.802	98.240
LOAN FUNDS
1] Secured Loans		188.461	183.695	160.650
2] Unsecured Loans		1.000	0.000	0.000
TOTAL BORROWING		189.461	183.695	160.650
DEFERRED TAX LIABILITIES		0.331	0.170	0.046
TOTAL		314.811	297.667	258.936
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		120.511	120.745	123.430
Capital work-in-progress		0.967	4.561	4.561
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	128.294	99.642	60.994
	Sundry Debtors	124.944	125.650	154.745
	Cash & Bank Balances	5.218	13.909	12.107
	Other Current Assets	0.000	0.000	11.511
	Loans & Advances	105.294	158.432	49.016
Total Current Assets		363.750	397.633	288.373
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	134.664	95.884	111.671
	Other Current Liabilities	29.753	119.540	40.417
	Provisions	6.000	9.848	5.340
Total Current Liabilities		170.417	225.272	157.428
Net Current Assets		193.333	172.361	130.945
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		314.811	297.667	258.936

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	355.036	292.821	292.077
		Other Income		0.177	1.000
		TOTAL (A)	355.036	292.998	293.077
Less	EXPENSES
		Cost of Goods Sold		149.555	175.431
		Salaries		29.710	16.920
		Administrative, Selling and General Expenses		68.801	57.454
		TOTAL (B)		248.066	249.805
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		337.481	44.932	43.272
Less	FINANCIAL EXPENSES (D)			0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			44.932	43.272
Less/ Add	DEPRECIATION/ AMORTISATION (F)			18.373	17.953
	PROFIT BEFORE TAX (E-F) (G)		17.555	26.559	25.319
Less	TAX (H)		6.161	10.997	6.595
	PROFIT AFTER TAX (G-H) (I)		11.394	15.562	18.724
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	67.543	48.819
	BALANCE CARRIED TO THE B/S		NA	83.105	67.543
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	58.568	51.792	NA
	TOTAL EARNINGS		58.568	51.792	NA
	IMPORTS
		Raw Materials	1.192	3.886	NA
		Capital Goods	1.193	3.289
	TOTAL IMPORTS		2.385	7.175	NA
	Earnings Per Share (Rs.)		4.00	5.08	6.11

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.21	5.31	6.39
Net Profit Margin (PBT/Sales)	(%)	NA	9.07	8.67
Return on Total Assets (PBT/Total Assets}	(%)	3.63	5.12	6.15
Return on Investment (ROI) (PBT/Networth)		0.14	0.23	0.26
Debt Equity Ratio (Total Liability/Networth)		2.87	3.59	3.24
Current Ratio (Current Asset/Current Liability)		2.13	1.77	1.83

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

Subject was incorporated as a private limited company on 12 May 2000 under the Companies Act, 1956. The Company is primarily engaged in the business as manufacturers, producers, processors, assembling, design, supply, servicing, repairing, importers, exporters, traders, buyers, sellers, retailers, wholesalers, suppliers, indenters, packers, movers, stockists, agents, sub-agents, merchants, distributors, consigners, jobbers, brokers, concessioners or otherwise deal in all kinds of and description of hydraulic components.

REVIEW OF OPERATIONS

During the year, the Company achieved Total Turnover/Gross Receipts of Rs.355.036 Millions resulting in a profit of Rs.17.555 Millions before making provision for current taxation to the extent of Rs.6.000 Millions deferred tax asset/(liability) to the extent of Rs.(0.161) .The Directors retain the balance profit of Rs.11.394 Millions which is transferred to Profit and Loss reserve. Inspite of severe competition from other similar businesses coupled with higher sales and increase in expenditures the company is satisfied with the performance.

FORM 8

Corporate identity number of the company	U33127KA2000PTC027058
Name of the company	DECCAN HYDRAULICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.38, KIADB Industrial Area, Dasarahosahalli, Bangarpet – 563114, Karnataka, India Email Id : accounts@deccanhydraulics.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Karnataka State Financial Corporation, S.L.N. Complex, Near K.S.R.T.C Bus Stand, M.B. Road, Kolar – 560001, Karnataka, India Email Id : legal123@ksfc.in
Nature of instrument creating charge	Mortgage Deed executed between the Company, Directors of the Company and Karnataka State Financial Corporation dated 15th day October 2011
Date of instrument Creating the charge	15.10.2011
Amount secured by the charge	Rs.14.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate of 13.5% per annum on the principal amount and if default is made in repayment of installment, penal interest at 2% per annum will be charged over and above the contract rate Terms of repayment First 4 quarterly installments of Rs.0.500each Next 8 quarterly installments of Rs.0.700 each Last 8 quarterly installments of Rs.0.800 each Margin NA Extent and operation of the charge The charge shall be in operation for a quarterly period of 20 installments or such further period as may be granted by the corporation
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1. Primary Security: All that piece and parcel of the Plot Bearing No. 38, KIADB Industrial Area, Dosarahosahalli, Bangarpet Taluk, Kolar District, measuring 2024 sq. mtrs. All that piece and parcel of the Plot Bearing No. 51, KIADB Industrial Area, Dosarahosahalli, Bangarpet Taluk, Kolar District, measuring 2021 sq. mtrs. All that piece and parcel of the Plot Bearing No. 53, in Sy. Nos. 134, 135 and 138, KIADB Industrial Area, Dosarahosahalli, Bangarpet Taluk, Kolar District, measuring 2133 sq. mtrs. All that piece and parcel of the Plot Bearing No. 10 and 11 (PART), in Sy. No. 122, 131 and 132, KIADB Industrial Area, Dosarahosahalli, Bangarpet Taluk, Kolar District, measuring 4536.18 sq. mtrs. All that piece and parcel of the Plot Bearing No. 8, in Sy. No. part of 71, 130 and 133, KIADB Indl. Area, Dosarahosahalli, Robertsonpet, Bangarpet Taluk, Kolar District, measuring 16116 sq. mtrs. All that piece and parcel of the Plot Bearing No. 11, KIADB Industrial Area, Dosarahosahalli, Robertsonpet, Bangarpet Taluk, Kolar District, measuring 4043 sq. mtrs. 2.Collateral Security: All that piece and parcel of the plot bearing no A 9, situated at Gollahalli Industrial area measuring 899.5675 sq mts All that industrial premises at C-6 situated at Gollahalli Industrial area measuring 419.90 sq mts

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Electrical Installations

· Furniture and Fixtures

· Computer

· Pattern Core Box Moulds

· Gauges and Instruments

· Racks and Angles

· Vehicles

· Telephones

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.49.50
UK Pound	1	Rs.77.74
Euro	1	Rs.65.19

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.