MIRA INFORM REPORT

Report Date :

02.09.2014

IDENTIFICATION DETAILS

Name :	KNORR-BREMSE AUSTRALIA PTY LIMITED
Registered Office :	23-29 Factory Street, Granville New South Wales 2142
Country :	Australia
Financials (as on) :	31.12.2013
Date of Incorporation :	20.04.2000
Com. Reg. No.:	Australian Company Number: 092562671
Legal Form :	Australian Proprietary Company, Limited by Shares
Line of Business :	The Subject engages in import, manufacturing, assembly and wholesale distribution of railway and commercial vehicle brake systems, door components and heating, ventilation, and air conditioning (HVAC) systems
No. of Employees :	172

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 – June 01, 2014

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

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

CORPORATE DETAILS

Verified Address

Subject name KNORR-BREMSE AUSTRALIA PTY LIMITED Business address 23-29 Factory Street Town Granville Province New South Wales Zip / Postal code 2142 Country Australia Telephone +61 2 88636500 Fax +61 2 98979980 Email rvs.aus@knorr-bremse.com / cvs.aus@knorr-bremse.com Website www.knorr-bremse.com.au

Registered address 23-29 Factory Street Town Granville Province New South Wales Zip / Postal code 2142 Country Australia Postal address P.O. Box 180 Town Granville Province New South Wales Zip / Postal code 2142 Country Australia

SUMMARY DETAILS

Report Summary

Date registered 20/04/2000 Legal form Australian Proprietary Company, Limited by Shares Key personnel Michael Mclellan Line of business The Subject’s business consist of import, manufacturing, assembly and wholesale distribution of railway and commercial vehicle brake systems, door components and heating, ventilation, and air conditioning (HVAC) systems. Staff employed 172 employees (Subject); 20,833 employees (Knorr-Bremse Group)

Paid-up capital AUD 9,000,000.00 Sales turnover / Revenue / Income AUD 125,748,457.00 (Non-Consolidated 12 months, 31/12/2013) Net income / loss AUD 6,124,889.00 (Non-Consolidated 12 months, 31/12/2013) Total assets AUD 72,466,371.00 (Non-Consolidated 12 months, 31/12/2013) Share equity AUD 26,213,831.00 (Non-Consolidated 12 months, 31/12/2013)

STATUTORY DETAILS

Registry Information

Date registered 20/04/2000 Legal form Australian Proprietary Company, Limited by Shares Registration number Australian Company Number: 092562671 Registered authority Australian Securities and Investments Commission Tax / VAT number Australian Business Number: 31092562671

Statutory status Active

BOARD OF MANAGEMENT

Key Personnel

Name Michael Mclellan Designation Managing Director Name George Sabbouh Designation Chief Financial Officer

BOARD OF DIRECTORS

Appointments

Name Michael Mclellan Title Director Appointment date 05/01/04 Address 4 Kulgoa Road Pymble, NSW 2073 Australia Biography Born on 26-09-1961 in Christchurch, New Zealand. Name Domingo Mendieta Vetter Title Director Appointment date 30/09/04 Address Apartment 2416 Convention Plaza Apartments No 1 Harbour Road Hong Kong Biography Born on 11-11-1957 in Madrid, Spain. Name Henrik Thiele Title Director Appointment date 21/09/11 Address 15 Ching Sau Lane Chung Hom Kok Hong Kong Biography Born on 10-10-1967 in Munich, Germany. Name Ansgar Heinrich Brockmeyer Title Director Appointment date 05/05/14 Address 203 Seabee Lane Discovery Bay Lantau Hong Kong Biography Born on 10-12-1966 in Bonn, Germany. Name George Sabbouh Title Company Secretary Appointment date 01/06/07 Address 22 Greygum Terrace Northmead, NSW 2152 Australia Biography Born on 27-03-1977 in Sydney, New South Wales, Australia.

Staff employed 172 employees (Subject); 20,833 employees (Knorr-Bremse Group)

Other Appointments

Auditor KPMG Level 10, 10 Shelley Street Sydney, NSW 2000 Australia

SHARE CAPITAL

Composition

Authorized capital AUD 9,000,000.00 Number / Type of shares 9,000,000 Ordinary Shares Share par value AUD 1.00 Issued capital AUD 9,000,000.00

Paid-up capital AUD 9,000,000.00

OWNERSHIP / SHAREHOLDERS

Composition

Shareholder name KNORR-BREMSE ASIA PACIFIC (HOLDING) LIMITED Address Suite 2901, 29/F. Central Plaza 18 Harbour Road Wanchai Hong Kong Number / Type of shares 9,000,000 Ordinary Shares Percentage (%) of shares 100%

CORPORATE AFFILIATIONS AND RELATED COMPANIES

Structure

Company name KNORR-BREMSE AG Affiliation type Ultimate Holding Company Country of business Moosacher Straße 80 80809 Munich Germany Company name KNORR-BREMSE ASIA PACIFIC (HOLDING) LIMITED Affiliation type Parent Company Country of business Central Plaza Suite 2901, 18 Harbour Road Wanchai Hong Kong Company name SYDAC PTY LTD. Affiliation type Sister Company Country of business Australia Company name KNORR-BREMSE TICARI ARAÇ FREN SISTEMLERI LTD. ŞTI. Affiliation type Sister Company Country of business Turkey Company name SIGMA TRANSIT SYSTEMS PTY. LTD. Affiliation type Sister Company Country of business Australia

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

BANK AND MORTGAGES

Bank Details

Name of bank Commonwealth Bank of Australia 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 01-09-2014

Concise Financial Data	Consolidation style	Non Consolidated	Non Consolidated	Group Consolidated
	Currency	Australia Dollar (AUD)	Australia Dollar (AUD)	Euro (EUR)
	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	125,748,457.00	128,035,620.00	4,302,682,000.00
	Gross profit	47,078,017.00	85,242,877.00
	Profit / Loss before tax	8,922,272.00	13,728,662.00	547,628,000.00
	Net income / loss	6,124,889.00	9,263,075.00	366,704,000.00
	Non-current assets	15,941,703.00	17,601,667.00	913,825,000.00
	Property, plant and equipment	8,356,240.00	6,548,765.00	642,562,000.00
	Current assets	56,524,668.00	65,289,364.00	1,955,243,000.00
	Inventories	11,056,779.00	13,908,841.00	279,342,000.00
	Cash and cash equivalents	9,137,098.00	17,800,140.00	806,386,000.00
	Accounts receivable	31,684,810.00	25,563,803.00	758,261,000.00
	Total assets	72,466,371.00	82,891,031.00	2,869,068,000.00
	Current liabilities	43,997,839.00	53,926,876.00	779,294,000.00
	Non-current liabilities	2,254,701.00	1,303,213.00	982,937,000.00
	Accounts payable	14,532,504.00	16,648,080.00	693,425,000.00
	Total liabilities	46,252,540.00	55,230,089.00	1,762,231,000.00
	Share equity	26,213,831.00	27,660,942.00	1,106,837,000.00
	Retained earnings	17,213,831.00	18,660,942.00	584,599,000.00

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 Knorr-Bremse AG. and all its subsidiaries.

BUSINESS DETAILS

Operational Details

Main activities The Subject engages in import, manufacturing, assembly and wholesale distribution of railway and commercial vehicle brake systems, door components and heating, ventilation, and air conditioning (HVAC) systems. The Subject is ultimately owned by Knorr-Bremse AG. Knorr-Bremse AG is engaged in the development, production, marketing, and servicing of braking systems for rail and commercial vehicles worldwide. The company also provides entrance systems, HVAC systems, control components and windscreen wiper systems, platform screen doors, friction material, simulators, and driver assistance systems for rail vehicles sector, as well as driver assistance systems, torsional vibration dampers, powertrain-related solutions, and transmission control systems for commercial vehicles sector. In addition, it offers maintenance, repair, and overhaul services to rail vehicles; and operates an online brake school that provides training services to drivers, technicians, distributors, fleets, and owner-operators. The company is headquartered in Munich, Germany. Products and services Rail, Buses, trailers and truck brakes systems and components, door components, electronic control and driver assistance systems and heating, ventilation, and air conditioning (HVAC) systems. Brands KNORR-BREMSE BENDIX

Purchases

International The Subject sources its product(s) / material(s) from countries worldwide.

Sales

Local The Subject sells its product(s) locally.

International The Subject exports its product(s) to countries in Asia and Oceania.

Key events
December 9,2013
Knorr-Bremse Opens New Plant in Australia

Knorr-Bremse Group opened a new braking systems, doors and heating, ventilation, and air conditioning (HVAC) plant in Granville, Australia. The new plant marks the cross-functional merger of its four former locations in New South Wales into one site in Granville. The 16,000 square meters facility employees 240 people in the various departments of Knorr-Bremse Australia. The new facilities in Granville represent a total investment of approximately EUR 25 million (USD 34.26 million). With the new facility, Knorr-Bremse aims to merge the activities of Sigma company, which it acquired in 2010, facilitating an efficient cross-functional collaboration. At its Granville plant, the company will continue manufacturing rail and commercial vehicle brake components, IFE-Tebel door systems, and Sigma HVAC systems. The site is a provider for OE and aftermarket services for brakes, doors, and HVAC in Australia, and comes at a time when the future of the local industry is under scrutiny.

Source: Businessweek

Business Facilities and Assets

Premises The Subject operates from the verified heading address consisting of a warehouse and an administrative office. Intellectual property AS/NZS 9001:2008 certified.

Branches In addition, the Subject operates from office branches located at: 16 Machinery Street Darra, QLD 4076 Australia Tel: +61 7 37137411 10A Downing Street Carlisle, WA 6985 Australia Tel: +61 8 93616600 9 & 13 Stoney Way Derrimut, VIC 3030 Australia Tel: +61 3 83536400 Unit 7, 7–11 Rodeo Drive Dandenong South, VIC 3175 Australia Tel: +61 3 97978500

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 & Poors: AAA Moodys rating: Aaa Moodys 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 Telegraphic transfer, D/P, Credit 30-90 days

Sales Term

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

International 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 (%)	37.44	66.58
Pre-tax profit (loss) margin (%)	7.10	10.72
Net profit (loss) margin (%)	4.87	7.23
Earnings per share (currency based on financial statement)	0.68	1.03
Return on Invested Capital	.	.	.
Return on assets (%)	8.45	11.18
Return on equity (%)	23.37	33.49
Liquidity	.	.	.
Current ratio	1.29	1.21
Quick ratio	1.03	0.95
Cash ratio	0.16	0.27
Accounts receivable turnover ratio (times)	3.97	5.01
Accounts payable turnover ratio (times)	8.65	7.69
Collection period (days)	91.97	72.88
Payment period (days)	42.18	47.46
Inventory turnover ratio (times)	11.37	9.21
Inventory conversion period (days)	32.09	39.65
Asset Management	.	.	.
Fixed asset turnover ratio (times)	15.05	19.55
Asset turnover ratio (times)	1.74	1.54
Capital Structure and Solvency	.	.	.
Total debt to asset ratio (%)	63.83	66.63
Total debt to equity ratio (%)	176.44	199.67
Non-current debt to equity ratio (%)	8.60	4.71

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.42
Euro	1	Rs.79.39

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	PDT

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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