MIRA INFORM REPORT

Report Date :

12.09.2012

IDENTIFICATION DETAILS

Name :	SPRAYING SYSTEM (INDIA) PRIVATE LIMITED
Registered Office :	Plot No.303 and 304, 2nd Cross, 5th Main, IV Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	01.06.1999
Com. Reg. No.:	08-036505
Capital Investment / Paid-up Capital :	Rs.69.696 Millions
CIN No.: [Company Identification No.]	U29120KA1999PTC036505
IEC No.:	039942997
TAN No.: [Tax Deduction & Collection Account No.]	BLRS12394E
PAN No.: [Permanent Account No.]	AADCS8656E
Legal Form :	Private Limited Liability company
Line of Business :	Manufacture of Spray Nozzles, Accessories and Turnkey System.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 880000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company is a subsidiary of Spraying Systems Company, USA Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported to be fair. Business is active. Payments are reported to be fair. Business is active. Payment are reported to be regular and as per commitments. The company can be considered 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 – 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 :	Plot No.303 and 304, 2nd Cross, 5th Main, IV Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-39853200/201 / 28375341
Fax No.:	91-80-39853377 / 23378111
E-Mail :	bhats@sprayindia.com ssipl@sprayindia.com
Website :	http://in.spray.com/
Branch Office :	Located at · Mumbai · Kolkata · Chennai · Delhi · Jamshedpur

DIRECTORS

As on 25.06.2012

Name :	Mr. Sridhar Bhat
Designation :	Managing Director
Address :	Flat No. D; Champak Apartment, 30-11, 8^th Main Road; Near 11^th Cross, Malleswaram, Bangalore – 560003, Karnataka, India
Date of Birth/Age :	20.07.1956
Qualification :	B.E., MBA
Date of Appointment :	15.11.2000
DIN No.:	00029497

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	Company/ LLP Status	Defaulting status
1	U29120KA1999PTC036505	SPRAYING SYSTEMS (INDIA) PRIVATE LIMITED	Managing director	15/11/2000	15/11/2000	Active	NO
2	U51901KA2002PTC037722	AUTOJET TECHNOLOGIES PRIVATE LIMITED	Director	27/01/2004	27/01/2004	Active	NO
3	U29253KA2011PTC060708	TEEJET TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	07/10/2011	07/10/2011	Active	NO

Name :	Mr. James Erik Bramsen
Designation :	Director
Address :	No. 26, Ridge Road, Barrington, Illinois, USA
Date of Birth/Age :	27.07.1936
Date of Appointment :	01.06.1999
DIN No.:	02631247

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	Company/ LLP Status	Defaulting status
1	U29120KA1999PTC036505	SPRAYING SYSTEMS (INDIA) PRIVATE LIMITED	Director	01/06/1999	01/06/1999	Active	NO
2	U51901KA2002PTC037722	AUTOJET TECHNOLOGIES PRIVATE LIMITED	Director	18/09/2002	18/09/2002	Active	NO

Name :	Mr. Ted Lee Butterfield
Designation :	Director
Address :	No. 223, C-Avenue, Coronado, California 92118, USA
Date of Birth/Age :	07.05.1941
Date of Appointment :	01.06.1999
DIN No.:	02631215

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	Company/ LLP Status	Defaulting status
1	U29120KA1999PTC036505	SPRAYING SYSTEMS (INDIA) PRIVATE LIMITED	Director	01/06/1999	01/06/1999	Active	NO
2	U51901KA2002PTC037722	AUTOJET TECHNOLOGIES PRIVATE LIMITED	Director	18/09/2002	18/09/2002	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.06.2012

Names of Shareholders	No. of Shares
Spraying Systems Company, USA	6969610
Sridhar Bhat	1
Total	6969611

As on 25.06.2012

Equity Share Break up (Percentage of Total Equity)

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of Spray Nozzles, Accessories and Turnkey System.
Products :	· Air Atomizing Nozzles · Air Control Nozzles · Air Knives · Automatic Nozzles · Foaming Nozzles · Gas Conditioning Nozzles · Manifolds and Showers · Paint Nozzles · Quick Connect Nozzles · Spray Dry Nozzles · Spray Guns · Spray Lances / Injectors · Strainers

PRODUCTION STATUS

As on 31.12.2011

Particulars	Unit	Licensed Capacity	Actual Production
Industrial Spray Nozzles and Accessories	Nos.	Not applicable	1,34,970

Installed Capacity: On a review of the technical aspects of the capacity, it is considered by the management that the installed capacity is not determinable

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

HDFC Bank Limited, Indira Nagar Branch, CMH Road, Indira Nagar, Bangalore – 560 038, Karnataka, India

Facilities :

Unsecured Loan	As on 31.12.2011 (Rs. in Millions)	As on 31.12.2010 (Rs. in Millions)
Other External Commercial Borrowings	53.025	44.703
Interest Accrued Due Other Debt	0.451	0.848
Total	53.476	45.551

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	31, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600 006, Tamilnadu, India
PAN No.:	AADFP9359C
Holding Company :	· Spraying Systems Company, USA Address : North Avenue, AT Schalle Road, Wheaton 60189, USA
Fellow Subsidiaries :	· Spraying System Company(S) Pte Limited , Singapore · Spraying Systems Deutschland GmbH, Germany · Spraying System Far East Co, Japan · Spraying Systems Compan, Japan · Autojet Technologies, Gent · Autojet Technologies, France · Spraying Systems (China) Company, Limited · Spraying System Company Sdn Bhd · Spraying Systems Mexico S.A. De C.V - Mexico · Spraying Systems do Brasil Ltda · Spraying Systems Middle East FZE · Spraying Systems Comtosi S.R.L · Spraying Systems Company (Philippines) INC · Spraying Systems Company De Chile LTDA · Teejet Technologies (India) Private Limited

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Share	Rs. 10/- each	Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6969611	Equity Share	Rs. 10/- each	Rs.69.696 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		69.696	52.937	52.937
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		149.723	96.554	86.776
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		219.419	149.491	139.713
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		53.476	45.551	28.178
TOTAL BORROWING		53.476	45.551	28.178
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		272.895	195.042	167.891
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		55.631	56.416	51.963
Capital work-in-progress		4.711	0.300	0.168
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		8.050	3.502	2.232
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.704	34.555	17.534
	Sundry Debtors	206.585	158.898	141.205
	Cash & Bank Balances	15.464	20.109	25.740
	Other Current Assets	0.183	0.144	0.158
	Loans & Advances	43.153	22.592	26.015
Total Current Assets		295.089	236.298	210.652
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	52.751	61.270	56.269
	Other Current Liabilities	22.222	21.454	20.656
	Provisions	15.618	18.755	20.204
Total Current Liabilities		90.591	101.479	97.129
Net Current Assets		204.498	134.819	113.523
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		272.895	195.042	167.891

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	466.850	332.538	286.577
		Other Income
		TOTAL	466.850	332.538	286.577
Less	EXPENSES
		Office Expenses	NA	316.748	260.245
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	316.748	260.245
	PROFIT BEFORE TAX		NA	15.790	26.332
Less	TAX		NA	6.012	9.096
	PROFIT AFTER TAX		24.680	9.778	17.236
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		14.125	7.220
		Commission Earnings		3.064	2.809
	TOTAL EARNINGS		22.560	17.189	10.029
	IMPORTS
		Raw Materials	40.003	39.628	29.187
		Trading Stocks	0.101	0.914	0.017
		Capital Goods	1.915	2.931	7.915
	TOTAL IMPORTS		42.019	43.473	37.119
	Earnings Per Share (Rs.)		4.24	1.85	3.60

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	5.29	2.94	6.01
Return on Total Assets (PBT/Total Assets}	(%)	NA	4.67	8.56
Return on Investment (ROI) (PBT/Networth)		NA	0.11	0.19
Debt Equity Ratio (Total Liability/Networth)		0.66	0.98	0.90
Current Ratio (Current Asset/Current Liability)		3.26	2.33	2.17

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	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 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

NOTE:

The registered office address of the company has been shifted from “42-A, Yeshwanthpur, Industrial Suburb, Ring Road (Opposite FTI), Yeshwanthpur, Bangalore – 560022, Karnataka, India” to the present address w.e.f. 01.03.2009.

FIXED ASSETS:

· Plant and Machinery

· Computers

· Office Equipments

· Furniture and Fixtures

· Vehicles

· 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.55.52
UK Pound	1	Rs.88.85
Euro	1	Rs.70.85

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.