MIRA INFORM REPORT

Report Date :

21.07.2012

IDENTIFICATION DETAILS

Name :	KHS MACHINERY PRIVATE LIMITED
Registered Office :	53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad – 380006, Gujarat.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04-32397
Com. Reg. No.:	26.05.1997
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U29199GJ1997PTC032397
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Machines used to manufacturer soft drink bottles.
No. of Employees :	140 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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 well established company having fine track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be 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.

INFORMATION DECLINE

Management Non – Corporative (91-79-66100001)

LOCATIONS

Registered / Administrative Office :	53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26442729/26440331/26443236/ 66100000/2644033/26440331
Fax No.:	91-79-26421324/ 66100010
E-Mail :	info@mamata.com khs@khsindia.com mahendra@ad1.vsnl.net.in mamata@wilnetonline.net mamatagroup@mamata.com
Website :	www.khsindia.com www.khs.com
Head Office:	15, Madhuban Ellisbridge, Near Madalpur Underbridge, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-25832866
Factory :	Plot No. 14/16, GIDC, Phase – I, Hirapur, Chawkad, Vatva, Ahmedabad – 382435, Gujarat, India
Tel. No.:	91-79-5832023/24/25/25833581/26440331
Fax No.:	91-79-5832026/25832867/26421324
E-Mail :	khs@khsindia.com

DIRECTORS

As on 19.07.2012

Name :	Mr. Mahendra Narsinhbhai Patel
Designation :	Managing Director
Address :	15 Kairavi Bungalow, Near Sarthi Hotel, Vastrapur Road, Boadakdev, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	17.01.1949
Date of Appointment :	26.05.1997
DIN No.:	00104997
Name :	Mr. Yatindra Ramakant Sharma
Designation :	Managing Director
Address :	7 Royal Crescent, Bungalows, Thaltej, Ahmedabad – 380059, Gujarat, India
Date of Birth/Age :	14.03.1955
Date of Appointment :	01.05.2002
DIN No.:	00349038
Name :	Mr. Jlohann Grabenweger
Designation :	Nominee Director
Address :	Welserstrasse, 28 Ludwigshafenamrhein 67063, Germany
Date of Birth/Age :	02.01.1963
Date of Appointment :	19.01.2006
DIN No.:	01251313
Name :	Mr. Georg Michels
Designation :	Director
Address :	Pappelweg 5, Dusseldorf-40489, Germany
Date of Birth/Age :	16.08.1956
Date of Appointment :	09.07.2008
DIN No.:	02303843
Name :	Mr. Matthias Nimeyer
Designation :	Nominee Director
Address :	Pelikanstr 57, Hannover-30177, Germany
Date of Birth/Age :	19.05.1967
Date of Appointment :	06.09.2010
DIN No.:	02855100
Name :	Mr. Parthasarathi Ghose
Designation :	Director
Address :	16 Yogeshwar Bunglows, Gulab Tower Raod, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	06.02.1969
Date of Appointment :	25.03.2011
DIN No.:	03521131
Name :	Mr. Eike Sebastian Hagen
Designation :	Nominee Director
Address :	Welchselstr 40, Essen – 45136, Germany
Date of Birth/Age :	20.04.1976
Date of Appointment :	25.03.2011
DIN No.:	03525407
Name :	Mr. Anke Baerbel Fischer
Designation :	Chairman cum Managing Director
Address :	Beimdorf 31, Duesseldorf – 40547, Germany
Date of Birth/Age :	15.06.1965
Date of Appointment :	25.03.2011
DIN No.:	03525431

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.07.2012

Names of Shareholders	No. of Shares
N Mahendra Patel	27490
M Nayana Patel	10
Mamata Machinery Private Limited, Gujarat, India	13750
KHS Machine UND- Anlagenbauy AG, Germany	945000
R Yatindra Sharma	13750
Total	1000000

Equity Share Break up (Percentage of Total Equity)

As on 19.07.2012

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	94.50
Bodies corporate	1.38
Directors or relatives of Directors	4.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Machines used to manufacturer soft drink bottles.

PRODUCTION STATUS (AS ON 31.03.2011):-

Particulars	Unit	Actual Production
Bottling Machines	Nos.	243

Note: *Licensed capacity is not applicable in terms of Government of India’s Notification No. S.O.477 (E) dated July 25, 1991. Management is of the view that considering the nature of manufacturing activity, it is not possible to determine Installed Capacity on which auditors have placed reliance without verification, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

140 (Approximately)

Bankers :

• State Bank of India, Industrial Estate Branch, Vatva, Ahmedabad – 382445, Gujarat, India
• Standard Chartered Grindlays Bank, C. G. Road, Ahmedabad – 380006, Gujarat, India
• HDFC Bank Limited, Navrangpura Branch, Ahmedabad – 380009, Gujarat, India
• ICICI Bank Limited, JMC Branch

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans taken for vehicles secured	11.429	11.252
Total	11.429	11.252
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans others unsecured	10.000	50.000
Interest accrued due other debt unsecured	0.060	0.000
Total	10.060	50.000

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Account
Address :	Plot YOY 14 Block EP, Sector V, Saltlake Electronic Complex, Bidhan Nagar, Kolkata – 700091, West Bengal, India
PAN.:	AAEFP3641G
Fellow Subsidiaries:	· KHS AG- Corpoplast GmbH and Company KG – Hamburg · KHS Asia Pte. Limited (Singapore) · KHS China GLM2 Company Limited (China) · KHS Industrial De Maquinas Ltda. (Brazil) · KHS Pacific Ptyl Limited- Victoria (Australia) · KHS USA Inc., Waukesha (USA) · Kloeckner Desma Machinery Private Limited · KHS AG (Thailand) Limited. - Thailand
Holding Company :	KHS AG, Germany
Ultimate Holding Company:	Salzgitter Gmbh, Germany
Others Related Parties :	Sourcepro Infotech Private Limited (till December 25, 2009) Mamta Airwings Mamata Machinery Private Limited Ferromatic Milacron India Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Note: Of all the above, 945,000 Equity Shares are held by KHS GmbH - Germany, the Holding Company which is a subsidiary of Salzgitter AG - Germany, the ultimate Holding Company.

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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		513.285	374.350	293.605
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		523.285	384.350	303.605
LOAN FUNDS
1] Secured Loans		11.429	11.252	12.358
2] Unsecured Loans		10.060	50.000	90.356
TOTAL BORROWING		21.489	61.252	102.714
DEFERRED TAX LIABILITIES		12.333	14.320	14.753
TOTAL		557.107	459.922	421.072
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		393.201	415.159	428.994
Capital work-in-progress		1.650	2.240	0.403
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	324.133	368.841	538.589
	Sundry Debtors	287.842	291.405	96.325
	Cash & Bank Balances	146.667	94.328	117.876
	Other Current Assets	0.454	0.312	0.987
	Loans & Advances	48.980	59.214	53.998
Total Current Assets		808.076	814.100	807.775
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	154.022	212.398	420.067
	Other Current Liabilities	441.868	518.780	377.894
	Provisions	49.930	40.399	18.139
Total Current Liabilities		645.820	771.577	816.100
Net Current Assets		162.256	42.523	[8.325]
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		557.107	459.922	421.072

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Other Income	2204.418	1777.418	649.632
		TOTAL (A)	2204.418	1777.418	649.632
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1939.659	1601.628	584.411
		Advertising Expenses
		TOTAL (B)	1939.659	1601.628	584.411
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		264.759	175.790	65.221
Less	FINANCIAL EXPENSES (D)		6.968	4.640	6.826
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		257.791	171.150	58.395
Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.031	40.034	37.991
	PROFIT BEFORE TAX (E-F) (G)		215.760	131.116	20.404
Less	TAX (H)		71.014	47.445	[1.283]
	PROFIT AFTER TAX (G-H) (I)		144.746	83.671	21.687
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		303.764	231.418	214.855
Less	APPROPRIATIONS
		Transfer to General Reserve	14.500	8.400	2.200
		Proposed Dividend	5.000	2.500	2.500
		Tax on Dividend	0.811	0.425	0.424
	BALANCE CARRIED TO THE B/S		428.199	303.764	231.418
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	36.150	163.844
	TOTAL EARNINGS		NA	36.150	163.844
	IMPORTS
		Raw Materials	NA	591.134	133.589
		Bought Out Components	NA	53.638	20.406
		Capital Goods	NA	0.256	0.000
	TOTAL IMPORTS		NA	645.028	153.995
	Earnings Per Share (Rs.)		144.75	83.67	21.69

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.57	4.71	3.34
Return on Total Assets (PBT/Total Assets}	(%)	26.70	16.11	2.53
Return on Investment (ROI) (PBT/Networth)		0.41	0.34	0.07
Debt Equity Ratio (Total Liability/Networth)		1.28	2.17	3.03
Current Ratio (Current Asset/Current Liability)		1.25	1.06	0.99

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Micro, Small and Medium Enterprise and others	1.716	2.622	3.624
Others	152.306	209.776	416.443
Total	154.022	212.398	420.067

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	No
10) Designation of contact person	No
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	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
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

YEAR IN RETROSPECT:

The year has been significant in many respects. After having high growth in sales in FY-2009-10, the company has again registered sales growth of 24% against last year and profits have been 50% higher than last year.

They have been also able to increase their business efficiencies by increasing their inventory turns to 9.8. Also their ROCE has been healthy 25.6 %. They have been able to reduce their material costs significantly by 4% of their sales under their cost reduction programme 2010-11.

The company has been able to win excellent goodwill from the customers. KHS India has been awarded the Best Supplier Performance Award -2010 by Coca Cola India. Annual supply chain audit by Heineken Global Supply Chain Team has given over all rating of 80% to the company. Also the company has received Economic Times India Manufacturing Excellence Award-2010.

The company is looking forward to much broad based business and profitability growth next year.

Contingent Liabilities:

Particulars	31.03.2011 Rs. In Millions
Disputed Income Tax Matters	17.094

Fixed Assets:

· Freehold Land

· Factory Building

· Plant and Machinery

· Computer

· Furniture and Fixture

· Vehicles

· Office Equipment

· Computer Software

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.55.15
UK Pound	1	Rs.86.57
Euro	1	Rs.67.60

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.