MIRA INFORM REPORT

Report Date :

05.12.2014

IDENTIFICATION DETAILS

Name :	YUKEN INDIA LIMITED
Registered Office :	P. B. No.16, Whitefield Road, Whitefield, Bangalore – 560066, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.06.1976
Com. Reg. No.:	08-003017
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	L29150KA1976PLC003017
TAN No.: [Tax Deduction & Collection Account No.]	BLRY00006G
PAN No.: [Permanent Account No.]	AAACY1160E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of wide range of Vane Pumps, Piston Pumps, Gear Pumps, Pressure Controls, Flow Controls, Directional Controls, Modular Control Valves, Servo Valves, Custom built/ standard Hydraulic Systems and Chip Compactor.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1565000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory having record. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct. 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 1, 2014

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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had willfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term rating = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	February 10, 2014

Rating Agency Name	CARE
Rating	Short term rating = A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	February 10, 2014

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE

[CONTACT NO.: 91-80-28454606]

LOCATIONS

Registered/ Head Office/ Factory 1 :	P. B. No.16, Whitefield Road, Whitefield, Bangalore – 560066, Karnataka, India
Tel. No.:	91-80-28457893/ 28454633/ 28451560/ 217
Fax No.:	91-80-28452261
E-Mail :	marketing@yukenindia.com radha_kk@yukenindia.com hmn_rao@yukenindia.com enquiry@yukenindia.com
Website :	http://www.yukenindia.com
Factory 2 :	6/13, Industrial Area, Kirti Nagar, New Delhi - 110015, India
Tel. No.:	91-11-45065008
E-Mail :	vinod_rathore@yukenindia.com biswaranjan_swain@yukenindia.com
Factory 3 :	Plot No. 57, IDA, Phase IV, Patancheru, Medak, Hyderabad – 502319, Andhra Pradesh, India
Foundry Division :	· No. 16-C, Doddanekundi Industrial Area, 2^nd Phase, Mahadevapura, Bangalore – 560048, Karnataka, India · Sy. No. 52, Khata No. 84/171, 85/172, Hedegabanahalli Village, Madivala Post, Malur Taluk, Kolar District – 569130, Karnataka, India
Sales and Services Offices :	Located at: · New Delhi (North Zone) · Faridabad · Kolkata (East Zone) · Mumbai (West Zone) · Ahmedabad · Pune · Indore · Bangalore (South Zone) · Belgaum · Secunderabad · Coimbatore · Chennai

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Osamu Tanaka
Designation :	Chairman
Date of Birth/Age :	03.06.1946
Qualification :	Bachelor’s degree of Accounting from Chuo University.
Experience :	Joined Yulen Kogyo Limited in 1982. Worked as Director from 1983 to 1986 in YKC, Brasil. Finance Manager of Nihon Cylinder from 1986 to 1988, Manager Production from 1988 to 1992, General Manager-Finance from 1996 to 1999 Director, West Sales Department from 1999 to 2007, Executive Director from 2007 to 2009, Senior Managing Director from 2009 to 2011, President from 2011 till date.
Date of Appointment :	02.09.2011
Name :	Mr. C.P. Rangachar
Designation :	Managing director
Name :	Mr. Y Mukaide
Designation :	Director
Name :	Mr. R Srinivasan
Designation :	Director
Date of Birth/Age :	10.09.1941
Qualification :	Graduate in Mechanical Engineering [BE Hons.]
Experience :	Managed Widia Indis Limited as Managing Director from 1981 to 1994 and transformed to become a market leader. Past Chairman of CII, Karnataka, Governing Council of CMTI, Bangalore. Past President of Greater Mysore Chamber of Commerce and IMTMA. Founder member of TQM Division started by CII in 1987. Closely associated with IMTMA and involved in establishing Bangalore International Exhibition Centre.
Date of Appointment :	29.06.1995
Name :	Capt. N S Mohanram
Designation :	Director
Date of Birth/Age :	10.04.1936
Qualification :	B Tech (Hons) in Naval Architecture from IIT, Khargapur. Post graduate in warship design [UK] MBA (Faculty of Management Studies) New Delhi.
Experience :	In Indian Navy, he has designed a number of warships and other crafts. Developed India’s indigenous major warship INS Godavari. He was Head of Divisions in Mukund Group. He recipient of major awards such as VKRV Rae Gold Medal and Das Gupta Gold Medal for standing first in MW. Vishist Sew Medal for designing INS Godavari from Rashtrapathi. Fellow of Indian National Academy of Engineering (INAE).
Date of Appointment :	30.05.2005
Name :	Dr. Premchander
Designation :	Director
Date of Birth/Age :	16.02.1954
Qualification :	Post Graduate in M. Sc Chemistry from Delhi University and Fellow-Indian Institute of Management (IIMB), Ahmedaabad, PhD-Finance and Control.
Experience :	Work experience includes State Bank of India Officer Commercial and Industrial Advances, Reliance Consultancy Private Limited involving in organizational development, Shrishrna Fine Chemicals and Pharmaceuticals Limited, in setting up of Management Systems and building the Organization. In IIMB as Associate Professor-Finance and Control.
Date of Appointment :	30.05.2005
Name :	Mr. Shiro Hattori
Designation :	Additional director
Date of Birth/Age :	20.09.1947
Qualification :	Graduate in Mechanical Engieering.
Experience :	Joined Yuken Kogyo Co. Limited Japan in 1966. Worked in Manufacturing Department till 1980. Worked in R and D for five years Worked in Quality Assurance Department, Production in various capacities for about more than 10 years and in 2013 appointed as Managing Director.
Date of Appointment :	09.09.2014

KEY EXECUTIVES

Name :	Mr. H.M. Narasinga Rao
Designation :	Chief Finance Officer and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	28330	0.94
Bodies Corporate	347952	11.60
Sub Total	376282	12.54
(2) Foreign
Bodies Corporate	1200000	40.00
Sub Total	1200000	40.00
Total shareholding of Promoter and Promoter Group (A)	1576282	52.54
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1500	0.05
Sub Total	1500	0.05
(2) Non-Institutions
Bodies Corporate	175101	5.84
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	875827	29.19
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	295514	9.85
Any Others (Specify)	75776	2.53
Non Resident Indians	71088	2.37
Clearing Members	4688	0.16
Sub Total	1422218	47.41
Total Public shareholding (B)	1423718	47.46
Total (A)+(B)	3000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	3000000	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of wide range of Vane Pumps, Piston Pumps, Gear Pumps, Pressure Controls, Flow Controls, Directional Controls, Modular Control Valves, Servo Valves, Custom built/ standard Hydraulic Systems and Chip Compactor.
Brand Names :
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Experience:	Not Divulged
Maximum limit dealt:	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Experience:	Not Divulged
Maximum limit dealt:	Not Divulged

POWER

· Bhel

· Alstom

· Jyoti Limited

STEEL

· Tata Steel

· Sail

· JSW

MACHINE TOOLS

· Makino

· HMT

· Proteck

PLASTICS

· Toshiba Machine

· Modtech

· Patel Plast

MOBILE

· Escorts

· Kamco

· Tata Hitech

OTHERS

· Toyota

· Honda

· Suzuki

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· State Bank of India

· Bank of Tokyo-Mitsubishi UFJ Limited

· Mizuho Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Term Loans From Banks	18.750	43.750
SHORT TERM BORROWINGS
Loans repayable on demand From Banks	56.097	43.921
Total	74.847	87.671
LONG-TERM BORROWINGS This loan is secured by exclusive first charge on hypothecation of company’s movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs. 6.250 Millions each at an interest rate of 10.15%.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
Subsidiaries :	· Yuflow Engineering Private Limited · Coretec Engineering India Private Limited
Associates :	· Sai India Limited · Bourton Consulting (India) Private Limited · Kolben Hydraulics Limited
Entity having significant influence :	Yuken Kogyo Co. Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period

PARTICULARS	OPENING	CLOSING
Equity shares with voting rights
As at 31.03.2014
- Number of Shares	3000000	3000000
- Amount in Millions	30.000	30.000

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

PARTICULARS	31.03.2014
Equity shares with voting rights	Number	% Holding
- Yuken Kogyo Co. Limited	1200000	40.00
- Benefic Investments and Finance Co. Private Limited	347952	11.60

Rights, preferences and restrictions attached to shares

The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in India rupees. The dividend proposed by Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	30.000	30.000	30.000
(b) Reserves & Surplus	517.852	497.708	482.817
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	547.852	527.708	512.817
(3) Non-Current Liabilities
(a) Long-term borrowings	18.750	43.750	68.750
(b) Deferred tax liabilities (Net)	43.813	42.715	29.738
(c) Other long term liabilities	47.262	40.423	45.778
(d) long-term provisions	17.559	14.933	11.868
Total Non-current Liabilities (3)	127.384	141.821	156.134
(4) Current Liabilities
(a) Short term borrowings	296.268	243.921	312.591
(b) Trade payables	341.917	249.654	302.685
(c) Other current liabilities	63.951	108.380	84.321
(d) Short-term provisions	8.575	7.375	14.606
Total Current Liabilities (4)	710.711	609.330	714.203
TOTAL	1385.947	1278.859	1383.154
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	503.996	522.879	498.241
(ii) Intangible Assets	8.841	7.399	10.041
(iii) Capital work-in-progress	3.908	4.846	6.718
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	34.541	33.424	31.494
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.885	10.798	16.267
(e) Other Non-current assets	0.289	1.065	2.934
Total Non-Current Assets	562.460	580.411	565.695
(2) Current assets
(a) Current investments	0.000	2.441	0.000
(b) Inventories	251.676	195.101	214.729
(c) Trade receivables	510.234	426.261	538.379
(d) Cash and cash equivalents	9.648	9.988	19.474
(e) Short-term loans and advances	50.001	63.671	44.701
(f) Other current assets	1.928	0.986	0.176
Total Current Assets	823.487	698.448	817.459
TOTAL	1385.947	1278.859	1383.154

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations [Net]	1644.862	1540.434	1712.436
		Other Income	6.367	11.854	7.318
		TOTAL (A)	1651.229	1552.288	1719.754
Less	EXPENSES
		Cost of Materials Consumed	847.664	777.116	863.381
		Purchases of Stock-in-Trade	2.266	3.697	3.796
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(30.556)	(2.322)	(0.495)
		Employees benefits expense	283.631	245.363	231.880
		Other expenses	456.098	406.686	397.188
		Exceptional Item	(20.059)	0.000	0.000
		TOTAL (B)	1539.044	1430.540	1495.750
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		112.185	121.748	224.004
Less	FINANCIAL EXPENSES (D)		37.579	47.336	41.305
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		74.606	74.412	182.699
Less/ Add	DEPRECIATION/ AMORTISATION (F)		43.134	41.313	28.820
	PROFIT BEFORE TAX (E-F) (G)		31.472	33.099	153.879
Less	TAX (H)		6.098	12.978	50.248
	PROFIT AFTER TAX (G-H) (I)		25.374	20.121	103.631
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings [FOB basis]	71.966	99.832	34.075
		Other Earnings	0.165	2.822	1.570
	TOTAL EARNINGS		72.131	102.654	35.645
	IMPORTS
		Raw Materials	265.054	182.083	203.862
		Capital Goods	1.091	6.810	38.146
	TOTAL IMPORTS		266.145	188.893	242.008
	Earnings Per Share (Rs.)		8.46	6.71	34.54

QUARTERLY RESULTS

PARTICULARS	30.06.2014	30.09.2014
Type	1^st Quarter	2^nd Quarter
Net Sales	377.400	471.400
Total Expenditure	392.200	448.300
PBIDT (Excl OI)	(14.800)	23.100
Other Income	1.800	2.100
Operating Profit	(13.000)	25.200
Interest	9.700	10.800
Exceptional Items	0.000	0.000
PBDT	(22.800)	14.400
Depreciation	11.000	11.200
Profit Before Tax	(33.800)	3.200
Tax	(10.600)	0.700
Provisions and contingencies	0.000	0.000
Profit After Tax	(23.100)	2.500
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(23.100)	2.500

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.54	1.31	6.05
Operating Profit Margin (PBDIT/Sales)	(%)	6.82	7.90	13.08
Return on Total Assets (PBT/Total Assets}	(%)	2.34	2.67	11.44
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.30
Debt Equity Ratio (Total Debt/Networth)		0.58	0.55	0.74
Current Ratio (Current Asset/Current Liability)		1.16	1.15	1.14

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	30.000	30.000	30.000
Reserves & Surplus	482.817	497.708	517.852
Net worth	512.817	527.708	547.852
Long-term borrowings	68.750	43.750	18.750
Short term borrowings	312.591	243.921	296.268
Total borrowings	381.341	287.671	315.018
Debt/Equity ratio	0.744	0.545	0.575

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1712.436	1540.434	1644.862
		(10.044)	6.779

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1712.436	1540.434	1644.862
Profit	103.631	20.121	25.374
	6.05%	1.31%	1.54%

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	Yes
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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10255884	09/12/2010	100,000,000.00	MIZUHO CORPORATE BANK LIMITED	MAKER CHAMBERS III, 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B01653534
2	80002038	28/03/2009 *	392,800,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, NO. 65, ST. MARK'S ROAD, BANGALORE, KARNATAKA - 560001, INDIA	A60229853
3	90196168	23/09/2005 *	125,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, ST MARK ROAD, BANGALORE, KARNATAKA, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand	240.171	200.000
Total	240.171	200.000

CORPORATE INFORMATION

Subject was established in 1976 in technical and financial collaboration with Yuken Kogyo Company Limited, Japan. YIL Manufacturing unit is located in Bangalore. Sales and distribution network is spread across India. Today YIL is the most preferred source of supply by most of the original equipment manufacturers in India. YIL manufacture wide range of Vane Pumps, Piston Pumps, Gear Pumps, Pressure Controls, Flow Controls, Directional Controls, Modular Control Valves, Servo Valves, Custom built/ standard Hydraulic Systems and Chip Compactor. YIL established Foundry Division in 1984, catering to Hydraulics, Automobile, Machine Tools, Textile Machinery, Earth moving, Agriculture and Material Handling segments. YIL has been certified as an ISO-9001:2008.

REVIEW OF PERFORMANCE

During the year, the Company achieved a turnover of Rs.1644.900 Millions compared to Rs.1540.400 Millions in 2013. The operations of the Company for the year have resulted in a net profit of Rs.25.400 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

The Indian Economy has undergone a tough phase in the year 2013-14. The growth was impacted by both the deteriorating global economy and various domestic issues like high interest rates, inflation, infrastructure constraints, lack of political consensus and liquidity crunch among others. Besides a fragile external account has caused depreciation of rupee in the back drop of volatile global risk sentiment Indian GDP growth is declined to around 4.75% during the year 2013-14. The overall macro-economic conditions during the year 2013-14 remained weak.

Customers are increasingly demanding innovative products and services with accelerated delivery times and at competitive prices. To adequately address these needs, Corporations are focusing on their core competencies using high technology to improve productivity, develop new products, conduct research and development activities, reduce business risk and manage operations more effectively.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The role of technology has evolved from supporting Corporations to transforming them. The ability to design, develop, implement and maintain advanced technology platform and solution to address business and customer needs has become a competitive advantage and a priority for Corporations worldwide. Concurrently, the prevalence of multiple technology platforms and a greater emphasis on network security and redundancy have increased the complexity, costs and risks associated with these technology platforms have created a growing need for specialists with experience in leveraging technology to help drive business strategy.

The Hydraulic Industry is a measure of the progress of a nation in terms of industrialization as well as social development. Obviously, extensive use of sophisticated hydraulics "correlates" with a high level of development. Inspired by Yuken, Japan our value system comprises-service to customers; deep sense of responsibility; respect for human beings; quality and frugality in all they do.

UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30.09.2014

[RS. IN MILLIONS]

PARTICULARS	3 Months ended 30.09.2014	Preceding 3 Months ended 30.06.2014	Half year ended 30.09.2014
	(Unaudited)	(Unaudited)	(Unaudited)
Income from Operations
Net Sales/Income from Operations [Net of Excise Duty]	471.383	377.393	848.776
Expenses
(a) Cost of material consumed	243.190	204.215	447.405
(b) Purchase of stock in trade	0.297	0.276	0.573
(c) Changes in inventories of finished goods, work in progress and stock in trade	(7.137)	(3.636)	(10.773)
(d) Employee benefit expenses	83.608	77.017	160.625
(e) Depreciation and amortization expenses	11.234	10.990	22.224
(f) Other Expenses	128.313	114.315	242.628
Total Expenses	459.505	403.177	862.682
Profit from Operations before Other Income, Finance costs and Exceptional item	11.878	(25.784)	(13.906)
Other Income	2.121	1.748	3.869
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	13.999	(24.036)	(10.037)
Finance costs	10.802	9.718	20.520
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	3.197	(33.754)	(30.557)
Exceptional item	--	--	--
Profit/ Loss from Ordinary Activities before tax	3.197	(33.754)	(30.557)
Tax Expenses	0.695	(10.622)	(9.927)
Net Profit for the period	2.502	(23.132)	(20.630)
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	--	--	--
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	--	--	--
Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualized) - Basic	0.83	(7.71)	(6.88)
- Diluted	0.83	(7.71)	(6.88)
Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualized) - Basic	0.83	(7.71)	(6.88)
- Diluted	0.83	(7.71)	(6.88)
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	1423718	1423718	1423718
Percentage of Shareholding	47.46	47.46	47.46
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	--	--	--
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
Non - encumbered
- Number of Shares	1576282	1576282	1576282
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
- Percentage of Shares (as a % of the total share capital of the company)	52.54	52.54	52.54

NOTES:

1) The above financial results as reviewed by the Audit Committee were taken on record by the Board of Directors at their meeting held on 29.10.2014.

2) Information on Investors complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended 30.09.2014

Nature of complaints received	Opening Balance as on 01.07.2014	Received	Disposal	Closing Balance as on 30.09.2014
Non-receipt of Share Certificates	0	1	1	0
Non-receipt of Dividend Warrants	0	0	0	0
Non-receipt of Annual Report	0	3	3	0
Complaint from Stock Exchange / SEBI	0	0	0	0
Total	0	4	4	0

3) Previous period figures have been re-grouped / reclassified wherever necessary.

STATEMENT OF ASSETS AND LIABILITIES

[RS. IN MILLIONS]

PARTICULARS		30.09.2014
A. EQUITY AND LIABILITIES		Unaudited
1. Shareholders’ Funds
a] Share Capital		30.000
b] Reserves and Surplus		497.222
Sub-total – Shareholders’ funds		527.222
2. Non-current Liabilities
a] Long term Borrowings		6.250
b] Deferred Tax Liabilities		33.886
c] Other current liabilities		48.540
d] Long term provisions		19.357
Sub-total - Non-current Liabilities		108.033
3. Current Liabilities
a] Short term Borrowings		326.442
b] Trade Payables		372.907
c] Other Current Liabilities		91.009
d] Short Term Provision		3.345
Sub-total - Current Liabilities		793.703
TOTAL - EQUITY AND LIABILITIES		1428.958
B ASSETS
1. Non-current assets
a] Fixed assets		507.593
b] Non-current investment		34.541
c] long Term loans and Advances		14.417
d] Other non-current assets		0.838
Sub-total – Non- current assets		557.389
2. CURRENT ASSETS
	Current Investments	0.000
	Inventories	311.390
	Trade Receivables	493.240
	Cash & Bank Balances	8.663
	Short Term loans and advances	52.324
	Other Current Assets	5.952
Sub-total – Current Assets		871.569
TOTAL - ASSETS		1428.958

SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

[RS. IN MILLIONS]

PARTICULARS	3 Months ended 30.09.2014	Preceding 3 Months ended 30.06.2014	Half year ended 30.09.2014
	(Unaudited)	(Unaudited)	(Unaudited)
Segment Revenue [Sales and Other Operating Income]
a. Hydraulic Business	416.702	337.543	754.245
b. Other Business	81.736	65.111	146.847
c. Unallocated Income	1.673	0.427	2.100
Total Segment Revenue	500.111	403.081	903.192
Less: Inter segment Revenue	26.607	23.940	50.547
Net Segment Revenue	473.504	379.141	852.645
Segment Results [Profit before tax and interest from ordinary activities]
a. Hydraulic Business	60.228	31.856	92.084
b. Other Business	(20.299)	(17.254)	(37.553)
Total Segment Results	39.929	14.602	54.531
Less: Finance Costs	10.802	9.718	20.520
Add/ (Less): Other unallocable expenditure net off income	(25.930)	(38.638)	(64.568)
Total Profit/ (Loss) before Tax	3.197	(33.754)	(30.557)
Total Capital Employed [Segment assets less Segment liabilities]	527.222	524.720	527.222

NOTES:

· Segment Revenue, Results represent amount identifiable to each of the segment. Other ‘unallocable expenditure net off income’ mainly includes interest, dividend, gain on sale of investments [net], expenses on common services not directly identifiable to individual segments and corporate expense.

· There is no segment wise bifurcation of Assets and Liabilities for Hydraulic Business and Other Business. Assets and Liabilities of the Company are jointly used by all segments.

· The segment information is being presented in the manner above, for the first year by the Company, accordingly comparable information relating to the corresponding to quarter of the previous year and for the year ended 31.03.2014 were not available and hence not presented.

· Previous period figures have been re-grouped / reclassified wherever necessary.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Corporate guarantee given by the Company on behalf of subsidiaries.	35.900	38.605
Bills discounted outstanding as at the year end	4.546	15.542
Total	40.446	54.147

FIXED ASSETS:

· Freehold Land

· Buildings

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Jigs and Fixtures

· Motor 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. 61.88
UK Pound	1	Rs. 97.02
Euro	1	Rs. 76.13

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	BVA

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	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.