MIRA INFORM REPORT

Report Date :

22.01.2013

IDENTIFICATION DETAILS

Name :	PEPPERL AND FUCHS (INDIA) PRIVATE LIMITED
Registered Office :	546/1,7^th Main, 4^thPhase, Peenya Industrial Estate, Bangalore - 560058,, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.09.2000
Com. Reg. No.:	08-027777
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U74999KA2000PTC027777
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Electronic Switches and Equipment.
No. of Employees :	150 (Approximately)

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 450000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Latest financials i.e. 2011-12 are missing from the government department. From the previous year record there seems a dip in the profitability of the company. However, net worth of the company is satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per the commitment. 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.

INFORMATION PARTED BY

Name :	Mr. Arvind
Designation :	Accounts Manager
Contact No.:	91-8-33526000
Date :	16.01.2013

LOCATIONS

Registered Office :	546/1,7^th Main, 4^thPhase, Peenya Industrial Estate, Bangalore - 560058,, Karnataka, India
Tel. No.:	1-80-28378030 / 5660
Mobile No.:	91-80-33526000 [Mr. Arvind]
Fax No.:	91-80-28378031
E-Mail :	info@in.pepperl-fuchs.com
Website :	http://www.pepperl-fuchs.in
Location :	Owned
Factory :	Vabha Business Park, Tower -2, Sohna 122002, Gurgaon, Haryana, India
Tel. No.:	91-124-3894000/3894176
Fax No.:	91-124-3894250
Location :	Owned

DIRECTORS

AS ON 30.09.2012

Name :	Mr. Thampy Mathew
Designation :	Managing Director
Address :	63, 5^th Main, NGEF Layout, Nagarbhavi, Bangalore – 560 071, Karnataka, India
Date of Birth/Age :	28.05.1958
Date of Appointment :	13.09.2006
DIN No.:	02022865
Name :	Mr. Ravi Krishna Prasad Agarwal
Designation :	Director
Address :	C-503, True Friends CGHS Limited, Plot No 29, Sector-6, Dwarka, New Delhi -110 075, India
Date of Birth/Age :	26.10.1969
Date of Appointment :	29.09.2007
DIN No.:	02298328
Name :	Mr. Matthias Gunkel
Designation :	Director
Address :	288A Bukit Batok Street 25 Apartments # 03-224, Singapore-650288
Date of Birth/Age :	13.12.1955
Date of Appointment :	23.02.2005
Name :	Mr. Gunther KEGEL
Designation :	Director
Address :	Mozartstrasse 19, Worms, Germany – 67549
Date of Birth/Age :	07.05.1960
Date of Appointment :	11.06.2005

KEY EXECUTIVES

Name :	Mr. Arvind
Designation :	Account Manager
Name :	Mr. S.P. Nagarajan
Designation :	Company Secretary
Qualification	M.com., A.C.S., L.L.B

MAJOR SHAREHOLDERS

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Pepperl + Fuchs GmbH, Germany	1499999
Pepperl+ Fuchs Pte Limited, Singapore	1
TOTAL	1500000

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
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 :

Manufacturer of Electronic Switches and Equipment.

Products :

Item Code No. (ITC Code)	74999
Product Description	Electronic Switches and Equipment

· Connectors

· Identification Systems

· Level Measurement

· Photoelectric Sensors

· Positioning Systems

· Rotary Encoders

· Ultrasonic Sensors

· Acceleration Sensors

· Inductive Sensors

· Vision Sensors

· Capacitive Sensors

· Speed Monitoring Device

· Switch Amplifier

Terms :

Selling :

Credit

Purchasing :

Credit

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Proximity Switch (Net of rejection)	Qty	N.A	20000	8.309
Proximity Switch Junction Box	Qty	N,A	N.A	174
Fully Wired Control Panels and others	Qty	N.A	N.A	395

GENERAL INFORMATION

Suppliers :	Pepperl and Fuchs Private Limited, Singapore
Customers :	Wholesalers and Industries · Yokogawa India limited
No. of Employees :	150 (Approximately)
Bankers :	Deutsche Bank, M.G. Road, Bangalore – 560001, Karnataka, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	Khivraj Mansion, 10/2, Kasturba Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-22274551/ 22274552
Fax No.:	91-80-22212437
E-Mail :	srinivas@brahmayya.com admin@brahmayyabir.com
PAN No.:	AAAFB9147R
Holding Company :	Pepperl +Fuchs Gmbh, Germany.
Fellow Subsidiaries :	· Pepperl + Fuchs (ME) FZE, Dubai. · Pepperl + Fuchs Pte Limited., Singapore · Pepperl + Fuchs (Mfg) Pte Limited., Singapore

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 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		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		98.234	93.011	70.778
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		113.234	108.011	85.778
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		113.234	108.011	85.778
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		88.856	13.439	19.880
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		16.818	12.936	25.217
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	108.446	51.995	40.320
	Sundry Debtors	414.701	259.741	253.737
	Cash & Bank Balances	46.015	32.270	35.517
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.873	80.640	60.426
Total Current Assets		670.035	424.646	390.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	571.307	264.211	284.953
	Other Current Liabilities	15.156	4.729	7.239
	Provisions	76.012	74.070	57.127
Total Current Liabilities		662.475	343.01	349.319
Net Current Assets		7.560	81.636	40.681
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		113.234	108.011	85.778

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	1012.044	776.749	569.749
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1005.866	735.456	624.656
	PROFIT / (LOSS) BEFORE TAX		6.178	41.293	41.293
Less	TAX		0.955	19.060	19.060
	PROFIT / (LOSS) AFTER TAX		5.223	22.233	22.233
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		52.347	30.114	67.438
	BALANCE CARRIED TO THE B/S		57.571	52.347	30.114
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports (Software Billings + Exports)	21.459	18.944	14.434
	TOTAL EARNINGS		21.459	18.944	14.434
	Earnings Per Share (Rs.)		3.48	14.82	(24.88)

Particulars	31.03.2012
Sales Turnover (Approximately)	1200.000

Expected Sales (2012-2013) : Rs.1500.000 Millons

The above information has been parted by Mr. Arvind [Account Manager]

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.51	2.86	(6.55)
Return on Total Assets (PBT/Total Assets}	(%)	0.81	9.43	(13.40)
Return on Investment (ROI) (PBT/Networth)		0.05	0.38	(0.64)
Debt Equity Ratio (Total Liability/Networth)		5.85	3.18	4.07
Current Ratio (Current Asset/Current Liability)		1.01	1.24	1.12

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	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
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	No
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 of the company has been shifted from Plot No.10, 3^rd Main, 1^st Stage, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India w.e.f 01.04.2012

BUSINESS OPERATIONS OVERVIEW and OUTLOOK

The Company depicted considerable stability in its performance during the year under review that can be attributed to focused operations excellence, quality, innovation and working closely with the customers to provide product solutions that meet their specific requirements. The enhanced sales of the Company’s products conforming to international standards are a clear affirmation of the Company’s channel initiatives implemented in all focal areas of operation to create an efficient and robust system of operation.

The Directors are confident of further improving the performance of the Company by implementation of conservative operating plans for the year ahead with continued focus on cost management to meet the challenges posed by the competitive business environment.

TRADE REFERENCES

· Pepperl and Fuchs Private Limited, Singapore – Supplier

· Yokogawa India limited - Customer

FIXED ASSETS

· Improvement to Leasehold Premises

· Plant and Machinery

· Computers

· Furniture and Fixtures

· Office Equipments

· Vehicles

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 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.53.87
UK Pound	1	Rs.85.53
Euro	1	Rs.71.78

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	HET

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.