MIRA INFORM REPORT

Report Date :

09.12.2014

IDENTIFICATION DETAILS

Name :	ERNST KRETZSCHMAR ANTRIEBS- UND VERFAHRENSTECHNIK ENTWICKLUNGS- UND VERTRIEBS GMBH
Registered Office :	Alte Schulstr. 32 D 51515 Kürten
Country :	Germany
Financials (as on) :	31.12.2012
Year of Establishment :	1973
Com. Reg. No.:	HRB 45860
Legal Form :	Private Limited Company
Line of Business :	· Manufacturer of Instruments and appliances for measuring, testing and navigation. Manufacture of electronic motors, generators and transformations.
No. of Employees :	9

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 :	Slow but correct
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Germany	A1	A1

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

GERMANY - ECONOMIC OVERVIEW

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, has contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II - and its decrease to 5.3% in 2013. The new German government introduced a minimum wage of $11 per hour to take effect in 2015. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2012 Germany reached a budget surplus of 0.1%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016 though the target was already reached in 2012. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany hopes to replace nuclear power with renewable energy. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production.

Source : CIA

Company Name and address

Ernst Kretzschmar Antriebs- und Verfahrenstechnik Entwicklungs- und Vertriebs GmbH

Company Status: active

Alte Schulstr. 32

D 51515 Kürten

Telephone:02207/70901

Telefax: 02207/6713

Homepage: www.kretzschmar.eu

E-mail: info@kretzschmar.eu

VAT no.

DE121974064

CONCLUSION

Business relations are permissible.

Company Summary

LEGAL FORM Private limited company

Date of foundation: 1973

Shareholders'

agreement: 27.04.1983

Registered on: 19.07.1983

Commercial Register: Local court 50939 Köln

under: HRB 45860

Share capital

EUR 50,000.00

Shareholder:

Ernst Kretzschmar

Hollweg 18

D 51519 Odenthal

born: 02.07.1934

Share: EUR 30,000.00

Shareholder:

Hannelore Kretzschmar

D 51515 Kürten

born: 21.04.1941

Share: EUR 20,000.00

Manager:

Ernst Kretzschmar

Hollweg 18

D 51519 Odenthal

having sole power of representation

born: 02.07.1934

Profession: Businessman

Marital status: married

Manager:

Klaus Kretzschmar

Zu den Birken 28

D 51515 Kürten

having sole power of representation

born: 21.11.1966

Profession: Businessman

Marital status: married

Proxy:

Herbert Kretzschmar

D 51515 Kürten

having sole power of representation

born: 25.01.1963

Profession: Businessman

Marital status: married

BUSINESS ACTIVITIES

Main industrial sector

26511 Manufacture of instruments and appliances for measuring, testing and navigation

27110 Manufacture of electric motors, generators and transformators

71122 Engineering activities in the field of technical sectoral planning andengineering design

FINANCIAL INFORMATION

Payment experience: cash discount/within agreed terms

Negative information:We have no negative information at hand.

Balance sheet year: 2012

REAL ESTATE

Type of ownership: Tenant

Address Alte Schulstr. 32

D 51515 Kürten

Real Estate of: Klaus Kretzschmar

Type of ownership: Unknown

Address Zu den Birken 28

D 51515 Kürten

Land register documents were not available.

BANKERS

KREISSPARKASSE KÖLN, 51515 KÜRTEN

Sort. code: 37050299

BIC: COKSDE33XXX

DEUTSCHE BANK, 50587 KÖLN

Sort. code: 37070060

BIC: DEUTDEDKXXX

FINANCIAL FIGURES

Turnover: 2013 *EUR 1,140,000.00

Equipment: EUR 52,096.00

Ac/ts receivable: EUR 162,382.00

Liabilities: EUR 130,084.00

Employees: 9

The business figures marked with an asterisk are estimates based

on average values in the line of business.

BALANCE SHEETS

Balance sheet ratios 01.01.2012 - 31.12.2012

Equity ratio [%]: -5.40

Liquidity ratio: 0.47

Balance sheet ratios 01.01.2011 - 31.12.2011

Equity ratio [%]: -9.76

Liquidity ratio: 0.58

Balance sheet ratios 01.01.2010 - 31.12.2010

Equity ratio [%]: -1.01

Liquidity ratio: 1.65

Balance sheet ratios 01.01.2009 - 31.12.2009

Equity ratio [%]: 10.47

Liquidity ratio: 10.00

Equity ratio

The equity ratio indicates the portion of the equity as compared

to the total capital. The higher the equity ratio, the better the

economic stability (solvency) and thus the financial autonomy of

a company.

Liquidity ratio

The liquidity ratio shows the proportion between adjusted

receivables and net liabilities. The higher the ratio, the lower

the company's financial dependancy from external creditors.

Type of balance sheet: Company balance sheet

Financial year: 01.01.2012 - 31.12.2012

ASSETS EUR 561,249.03

Fixed assets EUR 168,548.12

Intangible assets EUR 238.00

Tangible assets EUR 52,096.00

Financial assets EUR 116,214.12

Other / unspecified financial assets EUR 116,214.12

Current assets EUR 391,648.58

Stocks EUR 198,255.50

Accounts receivable EUR 162,382.01

Liquid means EUR 31,011.07

Remaining other assets EUR 1,052.33

Accruals (assets) EUR 1,052.33

LIABILITIES EUR 561,249.03

Shareholders' equity EUR 92,315.97

Provisions EUR 337,999.09

Liabilities EUR 130,083.97

Other liabilities EUR 850.00

Deferrals (liabilities) EUR 850.00

Type of balance sheet: Company balance sheet

Financial year: 01.01.2011 - 31.12.2011

ASSETS EUR 624,124.91

Fixed assets EUR 140,205.38

Intangible assets EUR 526.00

Other / unspecified intangible assetsEUR 526.00

Tangible assets EUR 31,298.00

Other / unspecified tangible assets EUR 31,298.00

Financial assets EUR 108,381.38

Other / unspecified financial assets EUR 108,381.38

Current assets EUR 482,383.69

Stocks EUR 224,305.54

Accounts receivable EUR 190,559.59

Other debtors and assets EUR 190,559.59

Liquid means EUR 67,518.56

Remaining other assets EUR 1,535.84

Accruals (assets) EUR 1,535.84

LIABILITIES EUR 624,124.91

Shareholders' equity EUR 58,355.54

Capital EUR 58,355.54

Provisions EUR 356,653.24

Liabilities EUR 208,316.13

Other liabilities EUR 208,316.13

Unspecified other liabilities EUR 208,316.13

Other liabilities EUR 800.00

Deferrals (liabilities) EUR 800.00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.93
UK Pound	1	Rs.96.37
Euro	1	Rs.76.10

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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.