MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	VULKAN TECHNOLOGIES PRIVATE LIMITED
Registered Office :	Gat No399, Gala No 6, Village Bhare, Pirangut Industrial Area, Tal. Mulshi, Pune – 412111, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.06.2001
Com. Reg. No.:	11-016233
Capital Investment/ Paid-up Capital:	Rs.49.776 Millions
CIN No.: [Company Identification No.]	U29299PN2001PTC016233
TAN No.: [Tax Deduction & Collection Account No.]	PNEV04078E
PAN No.: [Permanent Account No.]	AABCV2508E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Marketing of Coupling /Castings, Rubber Elements and Lokrings.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 1375000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 :	Gat No399, Gala No 6, Village Bhare, Pirangut Industrial Area, Tal. Mulshi, Pune – 412111, Maharashtra, India
Tel. No.:	91-20-66765531
Fax No.:	91-20-66765551
E-Mail :	vulkan@vsnl.net info@vulkanindia.com
Website :	http://www.vulkan.com
Factory :	Gat No. 539 - B, Village Kasar Amboli, Urawade Road, Pirangut Industrial Area, Tal. Mulshi, Pune – 412115, Maharashtra, India
Tel No:	91-20-66765530 / 32 / 34
Fax No.:	91-20-66765551
E-Mail :	service@vulkanindia.com
Marketing Office :	#68, Mallapa Building, Chinnappa Layout, 1^st Cross, Kalkere Main Road, Ramamurthy Nagar, Bangalore – 560016, Karnataka, India
Tel. No.:	91-080-25653451
Mobile No:	91-9341347691
Fax No.:	91-080-25912389
E-Mail :	mrv.murthy@vulkanindia.com

DIRECTORS

(AS ON 15.09.2011)

Name :	Mr. Rajesh Krishnakumar Mishra
Designation :	Managing director
Address :	A-8,201,Ganga Satelite, Wanowarie, Pune – 411040, Maharashtra, India
Date of Birth/Age :	01.08.1961
Date of Appointment :	12.06.2001
DIN No:	00216370
Name :	Mr. Prashant Girjashankar Patel
Designation :	Director
Address :	A-8,302,Ganga Satelite, Wanowarie, Pune – 411040, Maharashtra, India
Date of Birth/Age :	12.10.1966
Date of Appointment :	31.01.2002
DIN No:	00218103
Name :	Mr. Bernd Email Hackforth
Designation :	Director
Address :	Langester 223, 44627, Herne – 44627, Germany
Date of Birth/Age :	13.03.1949
Date of Appointment :	10.08.2001
DIN No:	00242144
Name :	Mr. Andreas Boehme
Designation :	Director
Address :	Rahden Kleinendorf , IM Westerfeld 18, Rahden kleinendorf – 32369, Germany
Date of Birth/Age :	10.06.1954
Date of Appointment :	12.06.2009
DIN No:	02616871

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 15.09.2011)

Names of Shareholders	No. of Shares
Mr. Rajesh Krishnakumar Mishra	10,000
Hackforth GMBH, Germany	4,967,610
Total	4,977,610

(AS ON 15.09.2011)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.80
Directors or relatives of directors	0.20
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Coupling /Castings, Rubber Elements and Lokrings.

Products :

Item Code	Product description
--	Coupling/ castings, rubber elements and Lokrings

PRODUCTION STATUS

Particulars	Unit	Product	31.03.2011
Licensed Capacity	Nos.	Highly Flexible Coupling	200,000 / Annum
		Tube connectors	30,000,000 / Annum
Installed Capacity	Nos.	Highly Flexible Coupling	200,000 / Annum
		Tube connectors	30,000,000 / Annum
Actual Production	Nos.	Highly Flexible Coupling	7,206
		Highly Flexible Coupling Parts	51,770
		Tube connectors/spares	28,101,547

GENERAL INFORMATION

Customers :

Overseas Clients:

• American Vulkan Corporation, U.S.
• Vulkan Kupplungs – und Getriebebau B. Hackforth GmbH, Germany

Domestic Clients :

• Alfa Laval India Limited
• Cummins India Limited
• Elgi Equipments Limited
• Kirloskar Oil engines limited
• Man Diesel and Turbo India Limited

No. of Employees :

Not Available

Bankers :

• Oriental Bank of Commerce, 17- 20/20a, OBC Tower, Third Floor, Fergusson College Road, Pune – 411004, Maharashtra, India

• Kotak Mahindra Bank
• HDFC Bank Limited
• Citi Bank
• ICICI Bank

Facilities :

Secured Loan	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loan - Oriental Bank of Commerce (Secured by Mortgage of Fixed Assets of Steel Foundary )	0.000	5.669
Kotak Mahindra Bank	0.000	0.100
HDFC Bank Limited	1.438	1.881
Total	1.438	7.650

Banking Relations :	--
Auditors :
Name :	U.B. Gujar and Company Chartered Accountants
Address :	Swojas Gulmohar, 3, Shantisheela Society, Film Institute Road, Pune – 411004, Maharashtra, India
PAN No.:	ABMPG3737F
Holding Company :	B. Hackforth GmbH and Company.KG, Herne, Germany
Associates/Subsidiaries :	Vulkan Kupplungs –und Getriebebau GmbH and Company, Herne, Germany American Vulkan Corporation, Florida, USA Hackforth Holding GmbH and Company, Herne, Germany Valkan Italia (S.R.L.) Italy Vulkan do Brazil Ltda, Brazil Wuxi Vulkan, China

CAPITAL STRUCTURE

(As on 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Share	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,977,610	Equity Share	Rs.10/- each	Rs.49.776 Millions

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		49.776	49.776	46.435
2] Share Application Money		0.000	0.000	3.341
3] Reserves & Surplus		293.991	168.046	112.127
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		343.767	217.822	161.903
LOAN FUNDS
1] Secured Loans		1.438	7.650	13.379
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.438	7.650	13.379
DEFERRED TAX LIABILITIES		0.000	0.710	0.000
TOTAL		345.205	226.182	175.282
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		132.898	112.078	111.262
Capital work-in-progress		0.000	0.000	2.949
INVESTMENT		74.164	44.859	15.618
DEFERREX TAX ASSETS		1.292	0.000	0.693
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.900	38.190	27.417
	Sundry Debtors	74.707	49.082	44.649
	Cash & Bank Balances	49.808	42.298	45.438
	Other Current Assets	85.649	47.813	31.778
	Loans & Advances	11.970	7.339	6.724
Total Current Assets		283.034	184.722	156.006
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	47.228	55.490	61.610
	Other Current Liabilities	0.614	1.323	8.540
	Provisions	98.341	58.752	41.273
Total Current Liabilities		146.183	115.565	111.423
Net Current Assets		136.851	69.157	44.583
MISCELLANEOUS EXPENSES		0.000	0.088	0.177
TOTAL		345.205	226.182	175.282

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES AND INCOME		535.703	315.662	353.353
Less	EXPENDITURE		375.259	234.190	288.010
	PROFIT BEFORE TAX		160.444	81.472	65.343
Less	TAX		34.499	25.553	12.551
	PROFIT AFTER TAX		125.945	55.919	52.792
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	112.127	59.335
	TOTAL PROFIT TRANSFERRED TO GENERAL RESERVE		NA	168.046	112.127
	EARNINGS IN FOREIGN CURRENCY		220.596	107.451	81.865
	IMPORTS
		Finished Goods	12.337	5.556	3.504
		Capital Goods	7.764	2.350	0.346
		Raw Materials	8.095	2.582	1.745
	TOTAL IMPORTS		28.196	10.488	5.595
	Earnings Per Share (Rs.)		25.30	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	23.51	17.71	14.94
Return on Total Assets (PBT/Total Assets}	(%)	38.57	27.44	24.45
Return on Investment (ROI) (PBT/Networth)		0.47	0.37	0.40
Debt Equity Ratio (Total Liability/Networth)		0.43	0.57	0.77
Current Ratio (Current Asset/Current Liability)		1.94	1.60	1.40

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10074685
Corporate identity number of the company	U29299PN2001PTC016233
Name of the company	VULKAN TECHNOLOGIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gat No399, gala No 6, Village Bhare, Pirangut Industrial Area, Tal. Mulshi, Pune – 412111, Maharashtra, India
Type of charge	Immovable property
Particular of charge holder	Oriental Bank of Commerce, 17- 20/20a, OBC Tower, Third Floor, Fergusson College Road, Pune – 411004, Maharashtra, India Email - bm1088@obc.co.in
Nature of description of the instrument creating or modifying the charge	Equitable Mortgage by Deposit of Title Deeds
Date of instrument Creating the charge	27.09.2007
Amount secured by the charge	Rs.6.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest.: 0.00% p.a over BPLR, Minimum 13.25% p.a. with monthly rests or as notified by the bank from time to time. Terms of Repayment Repayment in 57 monthly installments w.e.f. 05.10.2007 Amount of installment : @ Rs.0.114 Millions + Interest as and when due Margin Margin : 50% Extent and Operation of the charge First Charge Others Facility : Term Loan
Short particulars of the property charged	Immovable property of the Company Situated at Gat No. 539-B, Kasar Amboli, Taluka Mulshi, Pune 411 042
Particulars of the present modification	Company has given additional security of its immovable proerty situated at Gat no. 539-B, Kasar Amboli, Taluka Mulshi, Pune 411 042 for the term loan of Rs.6.500 Millions

YEAR IN RETROSPECT

The sales and other income are increased by 69% as compared to the previous year. The company could register higher profits achieved by increase in turnover and control over the expenses and better and efficient cash management. Also there was considerable increase in sale of lokrings. The company has taken several initiatives in development of new products and developed various components in SG Iron casting, steel castings in Steel Foundry Division and Aluminum parts in Aluminum Foundry Division. The company has plans to further expand the factory premises and expand the production capacities by adding some automation machineries and purchasing additional land for construction of new factory building. The company has decided to exit from EOU Scheme from the financial year 2011-12 as the Sunset Clause of Income Tax Exemption under section 10B is withdrawn by the Central Government in their Union Budget for the financial year 2011-12.

FINANCE

They continue to maintain sufficient cash to meet their strategic objectives. During the current year, internal cash flows have more than adequately covered working capital requirements which helped to reduce the interest cost burden and also reduced dependency on bank borrowings.

CONTINGENT LIABILITIES:

There are contingent liabilities in respect of Bank Guarantees given to various authorities of Rs.0.611 millions (Previous Year 0.503 millions) Company’s products are sold with warranties and to cover any risk company has taken product liability insurance policy.

In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount reasonably necessary. At each balance sheet date the company assesses whether there is any indication that any asset may be impaired.

In the opinion of Management the assets are carried at less than their recoverable amount and hence no impairment loss has been provided for in the final accounts.

FIXED ASSETS :

• Motor Vehicle
• Computer
• Furniture and Fixture
• Office Equipment
• Testing and Measuring Instruments
• Tools
• Mould Pattern and Dies
• Plant and Machinery
• Software
• Land
• Factory Building

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.49.79
UK Pound	1	Rs.78.79
Euro	1	Rs.65.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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.