MIRA INFORM REPORT

Report Date :

19.10.2013

IDENTIFICATION DETAILS

Name :	HOSOKAWA MICRON BV
Registered Office :	Gildenstraat 26, Postbus 98, Doetinchem, 7000 AB
Country :	Netherlands
Financials (as on) :	30.09.2012
Year of Establishments:	1987
Com. Reg. No.:	34056583
Legal Form :	Private Subsidiary Company
Line of Business :	Design and supply of equipment and systems for mechanical and thermal processing of dry and wet powders.
No. of Employees :	231

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Netherlands	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Netherlands ECONOMIC OVERVIEW

The Dutch economy is the sixth-largest economy in the euro-zone and is noted for its stable industrial relations, moderate unemployment and inflation, a sizable trade surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. After 26 years of uninterrupted economic growth, the Dutch economy - highly dependent on an international financial sector and international trade - contracted by 3.5% in 2009 as a result of the global financial crisis. The Dutch financial sector suffered, due in part to the high exposure of some Dutch banks to U.S. mortgage-backed securities. In 2008, the government nationalized two banks and injected billions of dollars of capital into other financial institutions, to prevent further deterioration of a crucial sector. The government also sought to boost the domestic economy by accelerating infrastructure programs, offering corporate tax breaks for employers to retain workers, and expanding export credit facilities. The stimulus programs and bank bailouts, however, resulted in a government budget deficit of 5.3% of GDP in 2010 that contrasted sharply with a surplus of 0.7% in 2008. The government of Prime Minister Mark RUTTE began implementing fiscal consolidation measures in early 2011, mainly reductions in expenditures, which resulted in an improved budget deficit in 2011. In 2012 tax revenues dropped nearly 9%, GDP contracted, and the budget deficit deteriorated. Although jobless claims continued to grow, the unemployment rate remained relatively low at 6.8 percent.

Source : CIA

Company name & address

Hosokawa Micron BV

Gildenstraat 26

Postbus 98

Doetinchem, 7000 AB

Netherlands

Tel: 31-314373333

Fax: 31 (314) 37 34 56

Web: www.hosokawamicron.com

synthesis

Employees: NA

Company Type: Private Subsidiary

Corporate Family: 24 Companies

Ultimate Parent: HOSOKAWA MICRON CORP.

Incorporation Date: 1987

Financials in: usd (millions)

Fiscal Year End: 30-Sep-2012

Reporting Currency: Euro

Annual Sales: 48.2

Total Assets: 34.3

Business Description

Design and supply of equipment and systems for mechanical and thermal processing of dry and wet powders. The group has four core businesses: mixing, drying, agglomeration and containment

Industry

Industry Machinery and Equipment Manufacturing

ANZSIC 2006: 2469 - Other Specialised Machinery and Equipment Manufacturing

ISIC Rev 4: 2825 - Manufacture of machinery for food, beverage and tobacco processing

NACE Rev 2: 2893 - Manufacture of machinery for food, beverage and tobacco processing

NAICS 2012: 333241 - Food Product Machinery Manufacturing

UK SIC 2007: 2893 - Manufacture of machinery for food, beverage and tobacco processing

US SIC 1987: 3556 - Food Products Machinery

Key Executives

Name	Title
Joseph Giesen	Managing director
Barbara Smeitink	Director-Marketing
E. Van Ek	EDP manager
R. Dijkhuizen	Purchasing manager
Roland Wiersinga	Product Manager, New Developments

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7705342

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7719989

Corporate Overview

Location

Gildenstraat 26

Postbus 98

Doetinchem, 7000 AB

Netherlands

Tel: 31-314373333

Fax: 31 (314) 37 34 56

Web: www.hosokawamicron.com

Sales EUR(mil): 37.2

Assets EUR(mil): 26.5

Employees: NA

Fiscal Year End: 30-Sep-2012

Industry: Miscellaneous Capital Goods

Incorporation Date: 1987

Company Type: Private Subsidiary

Quoted Status: Not Quoted

Registered No.(NLD): 34056583

Managing director: Joseph Giesen

Industry Codes

ANZSIC 2006 Codes:

2469 - Other Specialised Machinery and Equipment Manufacturing

ISIC Rev 4 Codes:

2825 - Manufacture of machinery for food, beverage and tobacco processing

NACE Rev 2 Codes:

2893 - Manufacture of machinery for food, beverage and tobacco processing

NAICS 2012 Codes:

333241 - Food Product Machinery Manufacturing

US SIC 1987:

3556 - Food Products Machinery

UK SIC 2007:

2893 - Manufacture of machinery for food, beverage and tobacco processing

Business Description

Design and supply of equipment and systems for mechanical and thermal processing of dry and wet powders. The group has four core businesses: mixing, drying, agglomeration and containment

More Business Descriptions

Air Pollution Control Equipment

Hosokawa Micron B.V. is primarily engaged in manufacture of machinery for working soft rubber or plastics or for the manufacture of products of these materials (extruders, moulders, pneumatic tyre making or retreading machines and other machines for making a specific rubber or plastic product); manufacture of printing and bookbinding machines; manufacture of machinery for producing tiles, bricks, shaped ceramic pastes, pipes, graphite electrodes, blackboard chalk, foundry moulds, etc.; manufacture of moulding boxes for any material; mould bases; moulding patterns; moulds; manufacture of dryers for wood, paper pulp, paper or paperboard; manufacture of centrifugal clothes dryers; manufacture of diverse special machinery and equipment (machines to assemble electric or electronic lamps, tubes (valves) or bulbs; machines for production or hot-working of glass or glassware, glass fibre or yarn; machinery or apparatus for isotopic separation; rope-making machinery, etc.); and manufacture of industrial robots for multiple uses.

Brand/Trade Names

Nautamix

Financial Data

Financials in:	EUR(mil)
Revenue:	37.2
Assets:	26.5
Current Assets:	17.2
Total Liabilities:	26.5
Net Worth:	15.8
Date of Financial Data:	30-Sep-2012

1 Year Growth

15.6%

NA

Subsidiaries

Company	Percentage Owned	Country
Recomix B.V.		Netherlands
Hosokawa Micron Real Estate B.V.		Netherlands
Hosokawa Micron Espana S.A.		Spain
Hosokawa Micron Ltd

Key Corporate Relationships

Bank:	ING Bank

Corporate Family	Corporate Structure News:
	HOSOKAWA MICRON CORP. Hosokawa Micron BV
Hosokawa Micron BV Total Corporate Family Members: 24

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
HOSOKAWA MICRON CORP.	Parent	Hirakata-Shi	Japan	Machinery and Equipment Manufacturing	516.4	1,465
Hosokawa Alpine AG & Co oHG	Subsidiary	Augsburg, Bayern	Germany	Machinery and Equipment Manufacturing	177.6	560
HOSOKAWA BEPEX GmbH	Subsidiary	Leingarten, Baden-Württemberg	Germany	Machinery Wholesale		170
Hosokawa Micron International Inc.	Subsidiary	Summit, NJ	United States	Machinery and Equipment Manufacturing		60
Menardi-Criswell	Division	Trenton, SC	United States	Textile Manufacturing	35.6	160
Hosokawa Micron Powder Systems	Division	Summit, NJ	United States	Machinery and Equipment Manufacturing	226.0	72
Nano Particle Technology Center	Division	Summit, NJ	United States	Machinery and Equipment Manufacturing	0.8	70
Hosokawa Polymer Systems	Division	Berlin, CT	United States	Electrical Equipment and Appliances Manufacturing		20
Hosokawa Confectionery	Branch	Memphis, TN	United States	Grocery Wholesale	15.9	7
Hosokawa Micron International, Inc	Branch	Minneapolis, MN	United States	Machinery and Equipment Manufacturing		60
Alpine American	Division	Natick, MA	United States	Machinery Wholesale	28.0	12
Hosokawa Micron Ltd.	Subsidiary	Markham, ON	Canada	Electromedical and Control Instruments Manufacturing
Hosokawa Micron GmbH	Subsidiary	Cologne	Germany	Electromedical and Control Instruments Manufacturing	35.0	53
HOSOKAWA MICRON POWDERS GmbH	Subsidiary	Köln, Nordrhein-Westfalen	Germany	Basic Chemical Manufacturing		50
HOSOKAWA MICRON (Shanghai) Powder Machinery Co. Ltd	Subsidiary	Shanghai	China	Machinery Wholesale		20
HOSOKAWA ALPINE AMERICAN INC.	Subsidiary	Natick, MA	United States	Machinery Wholesale		15
HOSOKAWA DE MEXICO S.A. DE C.V.	Subsidiary	Mexico	Mexico	Machinery Wholesale		15
Hosokawa Micron BV	Subsidiary	Doetinchem	Netherlands	Machinery and Equipment Manufacturing	48.2
Hosokawa Micron Ltd.	Subsidiary	Runcorn	United Kingdom	Machinery and Equipment Manufacturing	13.4	58
Vitalair Systems Ltd.	Subsidiary	Runcorn	United Kingdom	Machinery and Equipment Manufacturing
HOSOKAWA MICRON FRANCE	Subsidiary	Evry, Essonne	France	Machinery and Equipment Manufacturing		3
Wagner-Hosokawa Micron Ltd	Subsidiary	Hirakata, Osaka	Japan	Machinery Wholesale
HOSOKAWA ALPINE JAPAN Co., Ltd.	Subsidiary	Hirakata, Osaka	Japan	Machinery Wholesale
HOSOKAWA MICRON (Korea) Ltd	Subsidiary	Seoul	Korea, Republic of	Machinery Wholesale

Executive report

Board of Directors

Name	Title	Function
Tetsuya Inoue	Member of the board of directors	Director/Board Member

Executives

Name	Title	Function
Joseph Giesen	Managing director	Managing Director
G. Boomkamp	Head of accounting department	Accounting Executive
B. Derksen	Personnel manager	Human Resources Executive
Barbara Smeitink	Director-Marketing	Marketing Executive
E. Van Ek	EDP manager	Information Executive
Roland Wiersinga	Product Manager, New Developments	Product Management Executive
R. Dijkhuizen	Purchasing manager	Purchasing Executive

Annual Profit & Loss

	30-Sep-2012	30-Sep-2011	30-Sep-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.770534	0.717768	0.740255
Consolidated	Yes	Yes	Yes
Net sales	48.2	44.8	37.1
Other operating income	0.1	0.2	0.1
Cost of goods sold	32.8	30.5	25.9
Cost of sales	32.8	30.5	25.9
Gross profit	15.4	14.3	11.2
Total payroll costs	3.6	-	-
Change in value of fixed assets arising from revaluation	1.0	1.0	1.1
Other operating costs	8.1	11.9	9.8
Net operating income	2.8	1.6	0.4
Total financial income	0.1	0.1	0.1
Total expenses	0.0	0.0	0.0
Profit before tax	2.9	1.6	0.5
Profit on ordinary activities after tax	3.1	2.2	0.4
Total taxation	-0.2	-0.6	0.1
Profit after tax	3.1	2.2	0.4
Net profit	3.1	2.2	0.4

Annual Balance Sheet

Financials in: USD (mil)

	30-Sep-2012	30-Sep-2011	30-Sep-2010
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.771999	0.745323	0.732493
Consolidated	Yes	Yes	Yes
Provisions and allowances	0.7	0.9	0.9
Trade creditors	5.6	4.8	6.1
Total current liabilities	12.6	12.8	13.1
Total liabilities (including net worth)	34.3	35.9	34.5
Intangibles	0.5	0.7	0.9
Total tangible fixed assets	9.7	9.7	10.0
Total asset investment	1.9	1.7	1.1
Total non-current assets	12.0	12.0	12.0
Net stocks and work in progress	2.9	2.0	1.6
Trade debtors	12.8	9.8	9.0
Other receivables	2.6	2.4	1.6
Total receivables	15.4	12.3	10.6
Cash and liquid assets	4.1	9.7	10.3
Total current assets	22.3	23.9	22.5
Total assets	34.3	35.9	34.5

Annual Ratios

Financials in: USD (mil)

	30-Sep-2012	30-Sep-2011	30-Sep-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.771999	0.745323	0.732493
Consolidated	Yes	Yes	Yes
Current ratio	1.80	1.90	1.70
Acid test ratio	1.50	1.70	1.60
Current liabilities to net worth	0.61%	0.59%	0.67%
Fixed assets to net worth	0.58%	0.56%	0.61%
Collection period	96.80	83.10	87.60
Stock turnover rate	16.60	21.80	23.20
Sales to net working capital	5.00	3.90	4.00
Asset turnover	1.40%	1.20%	1.09%
Profit margin	0.06%	0.04%	0.01%
Return on assets	0.08%	0.04%	0.01%
Sales per employee	160.90	144.89	128.41
Profit per employee	9.62	5.24	1.71
Return on capital	0.13%	0.07%	0.02%
Average wage per employee	12.06	-	-
Net worth	20.5	21.6	19.6
Number of employees	231	222	214

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Report Prepared by :

MNL

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	--

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.