MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	TRELLEBORG ENGINEERED SYSTEMS AUSTRALIA PTY LTD
Registered Office :	515 Zillmere Road Zillmere Queensland 4034
Country :	Australia
Financials (as on) :	31.12.2013
Date of Incorporation :	03.05.1955
Com. Reg. No.:	009674195
Legal Form :	Australian Proprietary Company, Limited by Shares
Line of Business :	Development, manufacturing and distribution of engineered rubber products mainly to offshore, infrastructure, construction and marine industries.
No. of Employees	78

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Australia	A1	A1

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

AUSTRALIA ECONOMIC OVERVIEW

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam

Source : CIA

Company name and address

TRELLEBORG ENGINEERED SYSTEMS AUSTRALIA PTY LTD

Verified Address

Subject name TRELLEBORG ENGINEERED SYSTEMS AUSTRALIA PTY LTD Business address 515 Zillmere Road Town Zillmere Province Queensland Zip / Postal code 4034 Country Australia Telephone +61 7 38667444 Fax +61 7 32634912 Email tqr.info@trelleborg.com Website www.trelleborg.com.au

Registered address 515 Zillmere Road Town Zillmere Province Queensland Zip / Postal code 4034 Country Australia Postal address P.O. Box 484 Town Virginia Province Queensland Zip / Postal code 4014 Country Australia

SUMMARY DETAILS

Report Summary

Date registered 03/05/1955 Legal form Australian Proprietary Company, Limited by Shares Key personnel Jeffery Bruce Cage Line of business The Subject’s business consist of development, manufacturing and distribution of engineered rubber products mainly to offshore, infrastructure, construction and marine industries. Staff employed 78 employees (Subject); 15,825 employees (Trelleborg Group)

Paid-up capital AUD 53,076.00 Sales turnover / Revenue / Income AUD 22,945,529.00 (Non-Consolidated 12 months, 31/12/2013) Net income / loss AUD -355,452.00 (Non-Consolidated 12 months, 31/12/2013) Total assets AUD 40,268,712.00 (Non-Consolidated 12 months, 31/12/2013) Share equity AUD 9,572,455.00 (Non-Consolidated 12 months, 31/12/2013)

Subject’s Credit Risk Analysis

Country risk Country risk is minimal Operation trend Operational trend is declining Management experience Management is adequately experienced Financial performance Financial performance is fair

Organisation structure Organisational structure is stable Detrimental No detrimental found Payment history No payment delays noted Credit amount requested Not described.

STATUTORY DETAILS

Registry Information

Date registered 03/05/1955 Legal form Australian Proprietary Company, Limited by Shares Registration number Australian Company Number: 009674195 Registered authority Australian Securities and Investments Commission Tax / VAT number Australian Business Number: 35009674195

Statutory status Active Previous name TRELLEBORG QUEENSLAND RUBBER PTY LTD QUEENSLAND RUBBER COMPANY PTY. LTD. (initial)

BOARD OF MANAGEMENT

Key Personnel

Name Jeffery Bruce Cage Designation Managing Director

BOARD OF DIRECTORS

Appointments

Name Lars Evald Olsson Title Director Appointment date 18/08/03 Address Rudbecksgatan 10A S-216 17 Limhamn Sweden Biography Born on 09-08-1953 in Hogsater, Sweden. Name Jeffery Bruce Cage Title Director Appointment date 30/04/01 Address 33 Evelyn Street Grange, QLD 4051 Australia Biography Born on 26-10-1952 in Brisbane, Queensland, Australia. Name Carl Fedrik Meuller Title Director Appointment date 20/07/12 Address Midgardsgatan 16B Malmoe Se-216 19 Sweden Biography Born on 01-12-1970 in Vetlanda, Sweden. Name Kay Jin Tan Title Director Appointment date 20/07/12 Address 6 Shangri-La Close Singapore 568250 Singapore Biography Born on 17-02-1975 in Johor Bahru, Malaysia. Name Andrew Robert Crawford Title Company Secretary Appointment date 10/07/09 Address 27 Evelyn Street Grange, QLD 4051 Australia Biography Born on 05-12-1965 in Brisbane, Queensland, Australia.

Staff employed 78 employees (Subject); 15,825 employees (Trelleborg Group)

Other Appointments

Auditor PRICEWATERHOUSECOOPERS Riverside Centre 123 Eagle Street Brisbane, QLD 4000 Australia

SHARE CAPITAL

Composition

Authorized capital AUD53,076.00 Number / Type of shares 26,538 Ordinary Shares Issued capital AUD53,076.00

Paid-up capital AUD53,076.00

OWNERSHIP / SHAREHOLDERS

Composition

Shareholder name QUEENSLAND RUBBER (HOLDINGS) PTY. LTD. Address 515 Zillmere Road Zillmere, QLD 4034 Australia Number / Type of shares 26,538 Ordinary Shares Percentage (%) of shares 100%

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name TRELLEBORG AB Affiliation type Ultimate Holding Company Country of business Sweden Comments Trelleborg AB is a Sweden-based engineering company active in the polymer technology sector. It is engaged in the development, manufacture and marketing of polymer solutions that seal, damp and protect in demanding industrial environments. The Company’s operations are divided into four areas: Trelleborg Engineered Systems, which supplies engineered solutions focusing on sealing, protection and safety of investments, processes and people in demanding environments; Trelleborg Automotive, which develops and manufactures polymer-based components and systems used for noise and vibration damping in passenger cars and light and heavy trucks; Trelleborg Sealing Solutions, which supplies precision seals for the industrial, aerospace and automotive markets, and Trelleborg Wheel Systems, which supplies wheel systems for agricultural and forest machinery, forklift trucks and other materials-handling vehicles. Company name QUEENSLAND RUBBER (HOLDINGS) PTY. LTD. Affiliation type Parent Company Country of business Australia Company name TRELLEBORG WHEEL SYSTEMS AUSTRALIA PTY LTD Affiliation type Sister Company Country of business Australia Company name TRELLEBORG MARINE SYSTEMS AUSTRALIA PTY LTD Affiliation type Sister Company Country of business Australia Company name TRELLEBORG DO BRAZIL LTDA Affiliation type Sister Company Country of business Brazil Company name TRELLEBORG SEALING SOLUTIONS CANADA INC. Affiliation type Sister Company Country of business Canada Company name TRELLEBORG COATED SYSTEMS (SHANGHAI) CO, LTD Affiliation type Sister Company Country of business China Company name TRELLEBORG MOULDED COMPONENTS (WUXI) CO., LTD. Affiliation type Sister Company Country of business China Company name TRELLEBORG SEALING SOLUTIONS (CHINA) CO., LTD. Affiliation type Sister Company Country of business China Company name Trelleborg Marine Systems France SAS Affiliation type Sister Company Country of business France

Remarks on corporate affiliations and related companies Other companies of the Trelleborg group should be considered affiliates of the Subject.

BANK AND MORTGAGES

Bank Details

Name of bank National Australia Bank Address Australia

Comments It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages

None reported.

Legal Filings

Bankruptcy filings None reported. Court judgements None reported.

Tax liens None reported. Others None reported.

FINANCIAL STATISTICS

Description

Financial statement source Commercial Registry Filings Financial statement date 31/12/13 Style of financial statement Full audited

Currency of financial statement Australia Dollar (AUD) Exchange rate 1 USD = AUD 1.07 as of 07-08-2014

Concise Financial Data	Consolidation style	Non Consolidated	Non Consolidated	Group Consolidated
	Currency	Australia Dollar (AUD)	Australia Dollar (AUD)	Sweden, Krona (SEK)
	Date of financial year end	31/12/13	31/12/12	31/12/13
	Length of financial accounts	12 months	12 months	12 months
	Sales turnover / Revenue / Income	22,945,529.00	30,584,181.00	21,473,000,000.00
	Gross profit	6,087,771.00	7,456,445.00	7,306,000,000.00
	Profit / Loss before tax	-536,352.00	339,963.00	2,361,000,000.00
	Net income / loss	-355,452.00	257,140.00	1,656,000,000.00
	Non-current assets	5,306,451.00	5,459,668.00	18,305,000,000.00
	Property, plant and equipment	4,048,631.00	4,078,911.00	5,141,000,000.00
	Current assets	34,962,261.00	34,765,277.00	8,983,000,000.00
	Inventories	3,526,766.00	4,058,741.00	3,188,000,000.00
	Cash and cash equivalents	614,867.00	1,910,501.00	893,000,000.00
	Accounts receivable	30,820,628.00	28,796,035.00	3,402,000,000.00
	Total assets	40,268,712.00	40,224,945.00	27,288,000,000.00
	Current liabilities	30,667,092.00	30,271,690.00	6,602,000,000.00
	Non-current liabilities	29,165.00	25,348.00	5,809,000,000.00
	Accounts payable	29,469,445.00	28,915,643.00	1,986,000,000.00
	Total liabilities	30,696,257.00	30,297,038.00	12,411,000,000.00
	Share equity	9,572,455.00	9,927,907.00	14,877,000,000.00
	Retained earnings	9,504,535.00	9,859,987.00	13,160,000,000.00
	Reserves	14,844.00	14,844.00

Remarks

The non-consolidated financial statement above relates only to the Subject. The group consolidated financial statement above relates to the Subject's Ultimate Holding Company Trelleborg AB and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities The Subject engages in development, manufacturing and distribution of engineered rubber products mainly to offshore, infrastructure, construction, mining and marine industries. The Subject is ultimately owned by Trelleborg AB. Trelleborg AB develops polymer solutions for seal, damp, and protect applications in industrial environments in Western Europe, North America, and internationally. The company offers rubber and polyurethane-coated substrates for general industry, automotive, transportation, and safety and health markets; and printing blanket solutions for offset printing, as well as operates a carrier sleeve production line for packaging flexo printing. It also provides fluid-handling solutions, including hoses, expansion joints, and elastomer materials; marine hoses for handling oil and gas; antivibration solutions, such as vibration dampers and precision components; pipe seals; sealing profiles for facades, windows, and doors; vibration-damping and acoustic solutions for rail and off-highway vehicles, and marine applications; and sealing systems for trains and trucks, as well as repairs wastewater and drinking water systems. In addition, the company offers polymer-based solutions for deep subsea exploration and extraction of oil and gas; sealing and vibration-damping civil engineering solutions for tunnels, bridges, and other structures; and berthing, docking, and mooring solutions for ports and vessels. Further, it provides O-rings, and rotary and hydraulic seals for various industrial applications; safety-critical aircraft seals for engines, flight control actuators, landing gear, and wheels and brakes; safety-critical seals for fuel systems, steering, air conditioning, and exhaust systems in light vehicles; and safety-critical precision seals for trains, engineering and agricultural equipment, and offshore oil and gas industry, as well as technology for damping and sealing. Additionally, the company offers tires and wheels for tractors and other vehicles in agriculture and forestry, as well as for other materials-handling vehicles, including forklift trucks. Trelleborg AB was founded in 1905 and is headquartered in Trelleborg, Sweden. Products and services Marine Solutions: Anti Terrorist Boat Barrier System Anti Vibration Mountings – Industrial D Fender and D Buffers Dam Seals/Gate Seal/Water Stop Seals/Music Note Seals Dracone Barges Inflatable Pipe Plugs Marine Fenders Orkot Industrial & Marine Bearings Pipe Expansion Joints Swing Back Flexible Safety Barrier Mining Products: Trelleborg Truck Body Rubber Liners Abrasion Resistant Lining Rubber – With and without bonding layer Anaconda Portable Park Ups Ceramic Wear Resistant Tiles Collapsible Containers Composite Ceramic Linings Conveyor Dust Sealing & Belt Cleaning Systems Conveyor Impact Beds Conveyor Skirting & Trellskirt Dragline Fairlead Buffers Elastoseal Waterproof Membrane Expansion Joints Handmade rubber bellows for mineral dredging barge application Inflatable Pipe Plugs Lifting Bags Mill and Scrubber Auxillary Equipment Mill Trunnion Liners Mining Hose Orkot Industrial & Marine Bearings Pulley Lagging Rock Curtains that Survive Rubber Lining and Lined Products Rubber Mill Liners Rubber Wear Panels Special Rubber Products Specialised Hoses Defence Products: Anti Terrorist Boat Barrier System Anti Vibration Mountings – Industrial Collapsible Containers Dracone Barges Orkot Industrial & Marine Bearings Single Sphere Rubber Bellows Electrical Products: Electrical Safety Mats High Voltage Blankets go to Market Industrial Rubber Products: Anti Vibration Mountings – Industrial Butyl Rubber D Fender and D Buffers Dust Cloth Rubber Elastoseal Waterproof Membrane EPDM Rubber Gina Seals Hydrobar Waterproofing Bandage Hypalon Rubber Industrial Rubber Hose Inflatable Seals Lifting Bags Man Hole Frame – Chimney Seal Matting – Ribbed, Studded Mouldings Natural Rubber Insertion Natural Rubber Insertion – Nylon Insertion Neoprene Insertion Neoprene Rubber Neoprene Rubber Sponge Nitrile Insertion Nitrile Rubber Omega Seals Peroxide Cured EPDM Potable Water EPDM AS4020 Pure Gum Repair & Maintenance – Collapsible Containers Rubber Ladder Fender Rubber Rail Crossing Self Adhesive Neoprene Sponge Tape Silicone Rubber Single Sphere Rubber Bellows Skirting Rubber Range Viton Infrastructure – Rail, Road And Bridges Products: Acoustic Isolation Bearings Ballast Matting Base Isolation Bearings – Seismic Bearing Strip Bridge Deck Expansion Joints including Modular type Elastoseal Waterproof Membrane Gold Coast Rapid Transit Project Kempsey Bypass Project PHS Expansion Joint System Pot Bearings Rail Track Isolation – FST Resilient Rail Mounts Rubber Laminated Bearings Rubber Rail Crossing See us at Ausrail – Stand 406 Seismic Protection Systems Swing Back Flexible Safety Barrier Trelleborg improves service life in Indian freight locos Tuned Mass and Viscous Dampers Infrastructure – Water Related Products: Dam Seals/Gate Seal/Water Stop Seals/Music Note Seals Elastoseal Waterproof Membrane Expansion Joints Gina Seals Hydrobar Waterproofing Bandage Inflatable Pipe Plugs Man Hole Frame – Chimney Seal Marine Fenders (New Install) Marine Fenders (Replacement) Omega Seals Pipe Expansion Joints Repair & Maintenance – Collapsible Containers Transporation Products: Anaconda Portable Park Ups Anti Vibration Mountings – Rail Ballast Matting Collapsible Containers Dracone Barges DragonCoat: Fire-retardant coating improves survivability in rail fires Kempsey Bypass Project Lifting Bags Matting – Ribbed, Studded Rubber Rail Crossing Brands TRELLEBORG

Purchases

International The Subject sources its product(s) / material(s) from countries such as Malaysia, India, Indonesia and Thailand.

Sales

Local The Subject sells its product(s) locally.

International The Subject exports its product(s) to countries worldwide.

Business Facilities and Assets

Premises The Subject operates from the verified heading address consisting of a production facility, warehouse and an administrative office.

Branches In addition, the Subject operates from office branches located at: 25 Glassford Road Kewdale, WA 6105 Australia Tel: +61 8 92566000

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) and Economic Overview

Central bank Reserve Bank of Australia Reserve of foreign exchange and gold US$ 46.714 billion Gross domestic product (GDP) US$ 1.586 trillion Purchasing power parity (GPP) 954.296 billion of International dollars GDP per capita (current prices) US$ 68,916 GDP composition by sector agriculture: 4% industry: 25.6% services: 70.4% Inflation 2010: 2.8% 2011: 3.4% 2012: 2.7% Unemployment rate 2010: 5.2% 2011: 5.1% 2012: 5.2%

Public debt (general Government gross debt as percentage (%) of GDP) 2010: 20.4% 2011: 22.9% 2012: 24% Government bond ratings Standard & Poor's: AAA Moody's rating: Aaa Moody's outlook: STA Market value of publicly traded shares US$1.198 trillion

Trade and Competitiveness Overview

Total exports US$263.9 billion Export commodities Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment Total imports US$239.7 billion Import commodities Machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products Best countries for doing business 10 out of 185 countries Global competitiveness ranking 20 (ranking by country on a basis of 144, the first is the best)

Major export partners China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8% Major import partners China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7% FDI inflows 2009: US$26,554 million 2010: US$35,556 million 2011: US$41,317 million FDI outflows 2009: US$16,693 million 2010: US$12,791 million 2011: US$19,999 million

Country and Population Overview

Total population 22.68 million Total area 7,692,024 km2 Capital Canberra

Currency Australian dollars (AUD) Internet users as percentage (%) of total population 79%

PAYMENT OUTLOOK

Purchases Term

International L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-90 days

Sales Term

Local Bank transfer, D/P, Credit 30-90 days

International L/C, Prepayment, Telegraphic transfer, D/P, Credit 30-90 days

Trade Reference / Payment Behaviour

Comments As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources Interviews and material provided by the Subject Other official and local business sources

KEY FINANCIAL RATIOS

For financial year end	31/12/13	31/12/12	.
Profitability	.	.	.
Gross profit (loss) margin (%)	26.53	24.38
Pre-tax profit (loss) margin (%)	-2.34	-2.34
Net profit (loss) margin (%)	-1.55	0.84
Return on Invested Capital	.	.	.
Return on assets (%)	-0.88	0.64
Return on equity (%)	-3.71	2.59
Liquidity	.	.	.
Current ratio	1.14	1.15
Quick ratio	1.03	1.01
Cash ratio	0.02	0.05
Accounts receivable turnover ratio (times)	0.74	1.06
Accounts payable turnover ratio (times)	0.78	1.06
Collection period (days)	490.27	343.66
Payment period (days)	468.78	345.09
Inventory turnover ratio (times)	6.51	7.54
Inventory conversion period (days)	56.10	48.44
Asset Management	.	.	.
Fixed asset turnover ratio (times)	5.67	7.50
Asset turnover ratio (times)	0.57	0.76
Capital Structure and Solvency	.	.	.
Total debt to asset ratio (%)	76.23	75.32
Total debt to equity ratio (%)	320.67	305.17
Non-current debt to equity ratio (%)	0.30	0.26

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	NIS

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.