MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	HYDRODYNE (INDIA) PRIVATE LIMITED
Registered Office :	B-47, Paramountnew Link Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.10.1986
Com. Reg. No.:	11-041391
Capital Investment / Paid-up Capital :	Rs.0.102 Million
CIN No.: [Company Identification No.]	U28100MH1986PTC041391
IEC No.:	0395001790
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporters of Oil Seal, Rubber Bellow Seal, PTFE Bellow Seal etc
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 200000
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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office :	B-47, Paramountnew Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-26736601 / 26733799 / 26736600 / 26736848
Fax No.:	91-22-26736639
E-Mail :	hydrodyn@bom3.vsnl.net.in
Website :	http://www.hydrodynepumps.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Muhammed Saeed Jalal Bhola

Designation :

Managing director

Address :

B-305, Pakeeza Co-Operative Housing Society Limited, Behram Baug, Jogeshwari (West), Mumbai – 400102, Maharashtra, India

Date of Birth/Age :

21.01.1952

Date of Appointment :

27.10.1986

DIN No.:

00069657

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U28100MH1986PTC041391	HYDRODYNE (INDIA) PRIVATE LIMITED	Managing director	27-10-86	27-10-86	-	Active	NO
2	U27101MH2009PTC189333	MULTI ALLOYS PRIVATE LIMITED	Director	05-01-09	05-01-09	-	Active	NO

Name :

Mrs. Amina Muhammed Saeed Bhola

Designation :

Director

Address :

B-305, Pakeeza Co-Operative Housing Society Limited, Behram Baug, Jogeshwari (West), Mumbai – 400102, Maharashtra, India

Date of Birth/Age :

17.01.1957

Date of Appointment :

07.05.1999

DIN No.:

00069695

Name :

Mr. Sajid Muhammed Saeed Bhola

Designation :

Director

Address :

B-305, Pakeeza Co-Operative Housing Society Limited, Behram Baug, Jogeshwari (West), Mumbai – 400102, Maharashtra, India

Date of Birth/Age :

06.01.1981

Date of Appointment :

01.04.2003

DIN No.:

00069475

Name :

Mr. Sadique Muhammed Saeed Bhola

Designation :

Director

Address :

B-305, Pakeeza Co-Operative Housing Society Limited, Behram Baug, Jogeshwari (West), Mumbai – 400102, Maharashtra, India

Date of Birth/Age :

26.01.1979

Date of Appointment :

16.02.2000

DIN No.:

00069572

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Bhola Jalal Muhammed Saeed	815
Bhola Muhammed Saeed Amina Jt Bhola Jalal Muhammed Saeed	5
Bhola Muhammed Saeed Sadique	100
Bhola Muhammed Saeed Sajid	100
Total	1020

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporters of Oil Seal, Rubber Bellow Seal, PTFE Bellow Seal etc

Products :

· Standard Basic Pumps

· High Temperature Pumps

· Reverse Circulation Pumps

· Reverse Circulation Vertical Pumps

· Pumps for Liquid with High Melting Point

· Slurry Handling Pumps

· Slurry Handling Vertical Pumps (Gas Seal Type)

· Multistage Pumps

· High Temperature High Pressure Pumps

Product Description	ITC Code
Engineering Spares	841090.00
Canned Motor Pumps	841090.00

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Engineering Spares	Nos.	838
Canned Motor Pumps	Nos.	356

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of India, Andheri (West) Branch, Bank of India Building, Ground Floor, 28, S. V. Road, Mumbai - 400058, Maharashtra, India

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Directors	8.273	0.468
Others	5.738	0.193
Total	14.011	0.661

Banking Relations :	--
Auditors :
Name :	Kuldip Mehta and Company Chartered Accountants
Address :	25-R, 9th Floor, Navjivan Commercial Premises, Lamington Road, Mumbai – 400008, Maharashtra, India
Tel. No.:	91-22-67991582 / 66335760
Fax No.:	91-22-23061214
E-Mail :	cakuldipmehta@gmail.com
PAN.:	AABPM7017Z

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1020	Equity Shares	Rs.100/- each	Rs.0.102 Million

Reconciliation of the number of shares and amount

Particulars	Opening	Fresh Issue	Other	Closing
Equity shares with voting rights
- Number of shares	1,020	Nil	Nil	1,020
- Amount in Millions	0.102	Nil	Nil	0.102

Details of shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	Number of shares held	% holding in that class of shares
Mr. Muhammed Saeed Jalal Bhola	815	80%
Mr. Sadique Muhammed Saeed Bhola	100	10%
Mr. Sajid Muhammed Saeed Bhola	100	10%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.102	0.102	0.102
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		52.066	46.135	41.517
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		52.168	46.237	41.619
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		14.011	0.661	1.861
TOTAL BORROWING		14.011	0.661	1.861
DEFERRED TAX LIABILITIES		1.594	1.561	1.644
TOTAL		67.773	48.459	45.124
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.771	9.437	10.291
Capital work-in-progress		13.415	7.013	6.500
INVESTMENT		0.049	0.049	0.049
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.503	14.129	14.818
	Sundry Debtors	30.380	37.869	15.277
	Cash & Bank Balances	32.586	19.697	4.954
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.941	3.764	18.816
Total Current Assets		83.410	75.459	53.865
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.995	28.502	14.556
	Other Current Liabilities	24.877	14.997	7.895
	Provisions	0.000	0.000	3.130
Total Current Liabilities		39.872	43.499	25.581
Net Current Assets		43.538	31.960	28.284
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		67.773	48.459	45.124

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	97.571	93.126	63.500
		Other Income	3.126	2.524	1.573
		TOTAL (A)	100.697	95.650	65.073
Less	EXPENSES
		Office Expenses
		Administrative Expenses	90.298	87.708	56.457
		Advertising Expenses
		TOTAL (B)	90.298	87.708	56.457
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.399	7.942	8.616
Less	FINANCIAL EXPENSES (D)		0.965	0.014	0.708
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.434	7.928	7.908
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.121	1.043	1.054
	PROFIT BEFORE TAX (E-F) (G)		8.313	6.885	6.854
Less	TAX (H)		2.383	2.267	2.108
	PROFIT AFTER TAX (G-H) (I)		5.930	4.618	4.746
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		41.136	36.518	32.207
Less	Prior Year Tax		0.000	0.000	0.435
	BALANCE CARRIED TO THE B/S		47.066	41.136	36.518
	EARNINGS IN FOREIGN CURRENCY		5.278	5.664	4.238
	VALUE OF IMPORTS		11.692	3.012	2.412
	Earnings Per Share (Rs.)		5813.73	5017.00	4654.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.89	4.83	7.29
Net Profit Margin (PBT/Sales)	(%)	8.52	7.39	10.79
Return on Total Assets (PBT/Total Assets}	(%)	8.83	8.10	10.68
Return on Investment (ROI) (PBT/Networth)		0.16	0.15	0.16
Debt Equity Ratio (Total Liability/Networth)		1.03	0.96	0.66
Current Ratio (Current Asset/Current Liability)		2.09	1.73	2.11

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	No
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	No
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 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

CONTINGENT LIABILITY (As on 31.03.2012)

Contingent liability Rs.53.354 Millions (Previous Year Rs. 36.791 Millions) being guarantee issued by bank against guarantee given by Company

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28100MH1986PTC041391
Name of the company	HYDRODYNE (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-47, Paramountnew Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India hydrodyn@bom3.vsnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90243582
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of India, Andheri (West) Branch, Bank of India Building, Ground Floor, 28, S. V. Road, Mumbai - 400058, Maharashtra, India AndheriW.MumbaiNorth@bankofindia.co.in
Nature of instrument creating charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	07.02.2011
Amount secured by the charge	Rs.70.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest presently Rs.180 + 0.77% per quarter or part thereof with a minimum of 1.54% + service tax with Guaranteewise rests or at such other rate/s as may be notified by the bank from time to time. Terms of Repayment On Demand. Margin As specified by the Bank from time to time. Extent and Operation of the charge Security and charge hereby created shall be by way of first charge on all said hypothecated assets for due payment as provided in the deed of all monies including principal sums, interest, commission costs, charges, expenses and all other monies whatsoever due owing and payable by Borrower to Bank under or in respect of or in connection with or in any wise concerning or relating to the said facility agreed to be granted and/or granted by Bank to the borrower Others and also for due repayment of all present and future indebtedness and liabilities of borrower to Bank of any kind in any manner whether solely or jointly primary or collateral accrued or accruing with all relative interest/commission, charges, costs and expenses. Revised Facility and Limit: Guarantee (I) Rs.70.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	a) All tangible movable machineries and plant both present and future situate at wherever else b) All tangible movable properties and assets of whatsoever nature of the Borrower (both present and future) wheresover situate at Andheri (West) or elsewhere, c) All present and future book debts, outstanding, money receivables, claims, bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the Borrower.
Date of instrument modifying the charge	22.06.2005
Particulars of the present modification	2^nd Modification. The principal amount of charge on the hypothecated assets is increased from Rs.11.500 Millions to Rs.70.000 Millions. Revised Facility and Limit: Guarantee (I): Rs.70.000 Millions.

FIXED ASSETS

· Plant and Machinery

· Factory Equipments

· Office Equipments

· Furnitures and Fixtures

· Electric Installation

· Vehicle

· Computers

As per Website

PROFILE

Subject is founded by Mr. M. J. Bhola, a man of eminent achievements in the Chemical and Process Engineering field. A self-made technocrat of remarkable technical ingenuity, Mr. Bhola has made pioneering and valuable contributions to certain segments of the Indian Industry.

· He was the first to put up a Mechanical Seal manufacturing unit in India, way back in 1973.

· Introduced Flexible Graphite Gaskets and Packing for the first time in the country in 1983.

· Pioneer in the manufacture of indigenous Canned Motor Pumps - 1994.

His achievements and contributions have earned him admiration and respect in the highest quarters of the Industries he has served for over a quarter century.

Subject is the leading pumps manufacturer, supplying sealless canned motor pumps, high pressure canned pumps, vertical canned pumps, chemical process pumps etc. Hydrodyne offers a whole range of canned pumps to suit extreme conditions for critical services in variety of industrial sectors. Hundreds of pumps are serving in the most critical areas of refineries, petrochemicals, power stations, liquefied gases, edible oiland fatty acids, industrial refrigeration etc.

The company maintains unsurpassable standards in design, engineering and precision manufacturing of motors and pumps to provide the most durable and efficient pumping system for the users. State-of-Art, comprehensive manufacturing and testing facilities and highly skilled technical core group assure for the users an ideal pump for every application

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 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.54.97
UK Pound	1	Rs.87.50
Euro	1	Rs.70.16

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		49

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.