MIRA INFORM REPORT

Report Date :

16.09.2014

IDENTIFICATION DETAILS

Name :	EMERSON PROCESS MANAGEMENT FLOW B.V.

Registered Office :	Neonstraat 1 6718WX Ede

Country :	Netherlands

Financials (as on) :	2012

Date of Incorporation :	15.06.2004

Com. Reg. No.:	30196818

Legal Form :	Private Company

Line of Business :	Manufacture of instruments for measuring, testing, navigation and controlling (2651)

No. of Employees	178

RATING & COMMENTS

MIRA’s Rating :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Netherlands

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

NETHERLANDS ECONOMIC OVERVIEW

Netherlands is the sixth-largest economy in the euro-zone and is noted for its stable industrial relations, moderate unemployment and inflation, sizable trade surplus, and 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. Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The Dutch financial sector suffered as a result of the global financial crisis, due in part to the high exposure of some Dutch banks to US 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. 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. To recover, the government 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 austerity measures in early 2011, mainly reducting expenditures, which resulted in an improved budget deficit in 2011. However, in 2012 tax revenues dropped, GDP contracted, and the budget deficit deteriorated. In 2013, the government budget deficit decreased to 3.3% of GDP due to increased government revenue from higher taxes. However, spending on social benefits also increased, due to a rise in unemployment benefits and payments for pensions. The high unemployment rate and tax increases have contributed to continued decreases in household disposable income, causing the Dutch economy to contract.

Source : CIA

Summary

Company name EMERSON PROCESS MANAGEMENT FLOW B.V.

Operative address Neonstraat 1

6718WX Ede

Netherlands

Legal form Private Company

Registration number 30196818

VAT-number 813279276

Year	2012		Mutation	2011		Mutation	2010
Fixed assets	563.409.000		-4,79	591.780.000		-4,98	622.812.000
Total receivables	289.941.000		19,41	242.812.000		9,99	220.761.000

Total equity	189.139.000		-22,34	243.556.000	t	26,53	192.495.000
Short term liabilities	790.501.000		14,15	692.481.000		-2,05	706.975.000

Net result	42.675.000	%	-15,57	50.547.000	t	141,01	20.973.000

Working capital	-263.086.000	%	-18,65	-221.731.000		23,26	-288.920.000
Quick ratio	0,49	%	-2,00	0,50		19,05	0,42

Contact information

Company name Emerson Process Management Flow B.V.

Trade names Emerson Process Management Flow B.V.

Operative address Neonstraat 1

6718WX Ede

Netherlands

Correspondence address Postbus 286

6710BG Ede Gld

Netherlands

Telephone number 0318495555

Fax number 0318495556

Website www.emersonproces.eu

Registration

Registration number 30196818

Branch number 000017771382

VAT-number 813279276

Status Active

First registration company register 2004-07-06

Memorandum 2004-06-25

Establishment date 2004-06-15

Legal form Private Company

Legal person since 2004-06-26

Activities

SBI Machining (2562)

Manufacture of instruments for measuring, testing, navigation and controlling (2651)

Exporter No

Importer No

Goal The welding process connections, assembling, configuring and calibrating and trading, flow meters, and to undertake marketing and sales activities for the previously reported actions.

Relations

Shareholders EMRSN HLDG B.V.

Teleportboulevard 140

1043EJ AMSTERDAM

Netherlands

Registration number: 300342890000

Percentage: 100%

Companies on same address Personeelsvereniging 'Emerson'

Registration number: 091920430000

Liability statements Emerson Electric Nederland B.V.

Teleportboulevard 140

1043EJ Amsterdam

Netherlands

Registration number: 310399390000

date of issue: 2004-10-29

Starting date: 2004-10-26

Management

Active management P.J.M.M. Peters (Petrus Joannes Martinus Maria)

Netherlands

Competence: Fully authorized

Function: Manager

Starting date: 2009-08-01

Date of birth: 1957-06-29, Overasselt, NL

H. van Doornspeek (Hijmen)

Netherlands

Competence: Fully authorized

Function: Manager

Starting date: 2010-10-01

Date of birth: 1962-11-22, Rhenen, NL

G.J. Bouw (Gerhard Jan)

Netherlands

Competence: Fully authorized

Function: Manager

Starting date: 2010-10-01

Date of birth: 1975-05-23, Ede, NL

P.J.H. van Gastel (Petrus Joannes Henricus)

Netherlands

Competence: Fully authorized

Function: Manager

Starting date: 2012-12-01

Date of birth: 1965-10-02, Veldhoven, NL

J. van den Brink (Johanna)

Netherlands

Competence: Limited authorization

Function: Proxy

Starting date: 2012-08-01

Date of birth: 1966-10-08, Barneveld, NL

J.J.K. Pieters - Oosterbeek (Jolanda Jeanette Klasina)

Netherlands

Competence: Limited authorization

Function: Proxy

Starting date: 2013-10-01

Date of birth: 1968-07-07, Ede, NL

L.A. Brouwers (Lars Adriaan)

Netherlands

Competence: Limited authorization

Function: Proxy

Starting date: 2013-10-01

Date of birth: 1981-05-06, Apeldoorn, NL

Employees

Total according to the Chamber of Commerce 178

Year	2014	2013	2006
Total	178	178	100

Payments

Description Payments made under regular condition

Key figures

Year	2012	2011	2010	2009	2008
Quick ratio	0,49	0,50	0,42	0,41	0,53
Current ratio	0,67	0,68	0,59	0,55	0,76

Working capital/ balance total	-0,24	-0,21	-0,28	-0,31	-0,16
Equity / balance total	0,17	0,23	0,18	0,16	0,19
Equity / Fixed assets	0,34	0,41	0,31	0,26	0,40
Equity / liabilities	0,21	0,30	0,23	0,19	0,25
Balance total / liabilities	1,21	1,30	1,23	1,19	1,30

Working capital	-263.086.000	-221.731.000	-288.920.000	-308.420.000	-109.203.000
Equity	189.139.000	243.556.000	192.495.000	160.003.000	129.034.000
Mutation equity	-22,34	26,53	20,31	24,00	31,80
Mutation short term liabilities	14,15	-2,05	3,12	50,16	7,36

Return on total assets (ROA)	4,75	6,42	2,70	4,43	8,11
Return on equity (ROE)	27,40	28,01	14,58	27,69	41,97
Gross profit margin	5,37	7,18	3,63	4,24	7,57
Net profit margin	3,87	4,66	2,15	3,52	3,68

Average collection ratio	1,39	1,57	1,38	1,28	2,10
Average payment ratio	3,80	4,46	4,42	4,30	4,89
Equity turnover ratio	5,83	4,45	5,06	5,50	7,43
Total assets turnover ratio	1,01	1,02	0,94	0,88	1,44
Fixed assets turnover ratio	1,96	1,83	1,57	1,41	2,99
Inventory conversion ratio	7,82	8,72	7,85	9,28	9,09

Turnover	1.102.050.000	1.083.838.000	974.975.000	879.782.000	959.337.000

Year	2012	2011	2010	2009	2008
Gross margin	369.501.000	340.162.000	309.858.000	261.786.000
Operating result	59.233.000	77.839.000	35.368.000	37.321.000	72.603.000
Net result after taxes	42.675.000	50.547.000	20.973.000	30.960.000	35.330.000

Gross profit					959.337.000
EBIT	59.233.000	77.839.000	35.368.000	37.321.000	72.603.000

Summary The 2012 financial result structure is a negative working captial of -263.086.000 euro, which is in agreement with -24 % of the total assets of the company.

The working capital has diminished with -18.65 % compared to previous year. The ratio, with respect to the total assets of the company has however, declined.

The deterioration between 2011 and 2012 has mainly been caused by an increase of the current liabilities.

The current ratio of the company in 2012 was 0.67. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations.

The quick ratio in 2012 of the company was 0.49. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

The 2011 financial result structure is a negative working captial of -221.731.000 euro, which is in agreement with -21 % of the total assets of the company.

The working capital has increased with 23.26 % compared to previous year. The ratio, with respect to the total assets of the company has however, increased.

The improvement between 2010 and 2011 has mainly been caused by an increase of the current assets.

The current ratio of the company in 2011 was 0.68. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations.

The quick ratio in 2011 of the company was 0.5. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

Financial statement

Remark annual account The financial statements shown in the report relate to the consolidated financial statements of the group.

Type of annual account Consolidated

Annual account Emerson Electric Nederland B.V.

Teleportboulevard 140

1043EJ Amsterdam

Netherlands

Registration number: 310399390000

Balance

Year	2012	2011	2010	2009	2008
End date	2012-09-30	2011-09-30	2010-09-30	2009-09-30	2008-09-30
Intangible fixed assets	383.519.000	396.044.000	432.135.000	450.607.000	151.217.000
Other tangible fixed assets					146.862.000
Tangible fixed assets	142.469.000	150.237.000	152.053.000	153.421.000	146.862.000
Other financial fixed assets					22.656.000
Financial fixed assets	37.421.000	45.499.000	38.624.000	18.089.000	22.656.000
Fixed assets	563.409.000	591.780.000	622.812.000	622.117.000	320.735.000

Other stock					105.518.000
Total stock	141.016.000	124.341.000	124.277.000	94.794.000	105.518.000
Accounts receivable	116.204.000	120.711.000	120.022.000	104.955.000	94.230.000
Other receivables	173.737.000	122.101.000	100.739.000	99.629.000	102.041.000
Total receivables	289.941.000	242.812.000	220.761.000	204.584.000	196.271.000
Liquid funds	96.458.000	103.597.000	73.017.000	77.786.000	45.588.000
accruals					102.041.000
Current assets	527.415.000	470.750.000	418.055.000	377.164.000	347.377.000
Total assets	1.090.824.000	1.062.530.000	1.040.867.000	999.281.000	668.112.000

Other reserves					129.034.000
Total reserves					129.034.000
Minority interests					3.055.000
Total equity	189.139.000	243.556.000	192.495.000	160.003.000	129.034.000

Provisions	35.776.000	45.735.000	49.800.000	46.906.000	21.932.000
Long term interest yielding debt	75.408.000	80.758.000	91.597.000	106.788.000
Other long term liabilities					57.511.000
Long term liabilities	75.408.000	80.758.000	91.597.000	106.788.000	57.511.000
Accounts payable		104.926.000
Other short term liabilities		587.555.000			456.580.000
Short term liabilities	790.501.000	692.481.000	706.975.000	685.584.000	456.580.000
Total short and long term liabilities	901.685.000	818.974.000	848.372.000	839.278.000	514.091.000
Total liabilities	1.090.824.000	1.062.530.000	1.040.867.000	999.281.000	668.112.000

Summary The total assets of the company increased with 2.66 % between 2011 and 2012.

Despite the assets growth, the non current assets decreased with -4.79 %.

Asset growth is in contrasts with the net worth decline of -22.34 %. The company's indebtedness has, therefore, increased with 10.1 %.

In 2012 the assets of the company were 51.65 % composed of fixed assets and 48.35 % by current assets. The assets are being financed by an equity of 17.34 %, and total debt of 82.66 %.

The total assets of the company increased with 2.08 % between 2010 and 2011.

Despite the assets growth, the non current assets decreased with -4.98 %.

The assets growth has been financed by a Net Worth increase of 26.53 %. The company's net increase has also covered a reduction of -3.47 % of the company's indebtedness.

In 2011 the assets of the company were 55.7 % composed of fixed assets and 44.3 % by current assets. The assets are being financed by an equity of 22.92 %, and total debt of 77.08 %.

Year	2012	2011	2010	2009	2008
Revenues	1.102.050.000	1.083.838.000	974.975.000	879.782.000	959.337.000
Net turnover	1.102.050.000	1.083.838.000	974.975.000	879.782.000	959.337.000

Gross margin	369.501.000	340.162.000	309.858.000	261.786.000

Wages and salaries	200.632.000	160.761.000	157.827.000	154.085.000	127.065.000
Sales	732.549.000	743.676.000	665.117.000	617.996.000
other operating costs	109.636.000	101.562.000	116.663.000	70.380.000	68.207.000
Raw materials and consumables					691.462.000
Operating expenses	1.042.817.000	1.005.999.000	939.607.000	842.461.000	886.734.000
Operating result	59.233.000	77.839.000	35.368.000	37.321.000	72.603.000

Year	2012	2011	2010	2009	2008
Financial income	7.911.000	4.319.000	3.225.000	24.978.000	4.082.000
Financial expenses	15.322.000	13.943.000	10.528.000	17.992.000	22.532.000
Financial result	-7.411.000	-9.624.000	-7.303.000	6.986.000	-18.450.000
Result on ordinary operations before taxes	51.822.000	68.215.000	28.065.000	44.307.000	54.153.000

Taxation on the result of ordinary activities	9.147.000	17.668.000	7.092.000	13.347.000	22.762.000
Result of ordinary activities after taxes	42.675.000	50.547.000	20.973.000	30.960.000	31.391.000

Extraordinary income					5.232.000
Extraordinary result after taxation					5.232.000
Net result	42.675.000	50.547.000	20.973.000	30.960.000	35.330.000

Attributable to third parties					-1.293.000

Summary The turnover of the company grew with 1.68 % between 2011 and 2012.

The gross profit of the company grew with 8.63 % between 2011 and 2012.

The operating result of the company declined with -23.9 % between 2011 and 2012. This evolution implies an decrease of the company's economic profitability.

The result of these changes is a reduction of the company's Economic Profitability of -26.01 % of the analysed period, being equal to 2011 % in the year 2012.

Despite the decline the assets turnover did not change, the index remained the same at 1.01.

The Net Result of the company increased by -15.57 % between 2011 and 2012.

The company's Financial Profitability has been negatively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability reduction of -2.18 % of the analysed period, being 27.4 % in the year 2012.

The company's financial profitability has been positively affected by its financial structure.

The turnover of the company grew with 11.17 % between 2010 and 2011.

The gross profit of the company grew with 9.78 % between 2010 and 2011.

The operating result of the company grew with 120.08 % between 2010 and 2011. This evolution implies an increase of the company's economic profitability.

The result of these changes is an increase of the company's Economic Profitability of 137.78 % of the analysed period, being equal to 2010 % in the year 2011.

This growth has contributed to the increase in assets turnover, increasing by 8.51 % reaching 1.02.

The Net Result of the company decreased by 141.01 % between 2010 and 2011.

The company's Financial Profitability has been negatively affected by the financial activities in comparison to the EBITs behaviour. The result of these variations is a profitability reduction of 92.11 % of the analysed period, being 28.01 % in the year 2011.

The company's financial structure has slowed down its financial profitability.

Analysis

Branch (SBI) Manufacture of fabricated metal products, except machinery and equipment (25)

Region Veluwe

In the Netherlands 12215 of the companies are registered with the SBI code 25

In the region Veluwe 520 of the companies are registered with the SBI code 25

In the Netherlands 347 of the bankrupcties are published within this sector

In the region Veluwe 7 of the bankruptcies are published within this sector

The risk of this specific sector in the Netherlands is normal

The risk of this specific sector in the region Veluwe is normal

Publications

Consent statements 20-06-2014: Voor boekjaar 2012 is een instemmingsverklaring gedeponeerd.

28-09-2012: Voor boekjaar 2011 is een instemmingsverklaring gedeponeerd.

02-12-2010: Voor boekjaar 2009 is een instemmingsverklaring gedeponeerd.

Functions 19-11-2013: Per 01-12-2012 is bestuurder Petrus Joannes Henricus van Gastel in

Functie getreden.

19-11-2013: Per 01-10-2013 is gevolmachtigde Lars Adriaan Brouwers in functie getreden.

19-11-2013: Per 01-10-2013 is gevolmachtigde Jolanda Jeanette Klasina Pieters-Oosterbeek

in functie getreden.

19-11-2013: Per 01-06-2013 is gevolmachtigde Hendricus van de Bovenkamp uit functie

getreden.

19-11-2013: Per 01-06-2013 is gevolmachtigde Gerrigje van Nieuw-Amerongen-van Schagen

uit functie getreden.

27-08-2012: Per 01-08-2012 is gevolmachtigde Johanna van den Brink in functie getreden.

24-11-2010: Per 01-11-2010 is gevolmachtigde Benno Henk Klomp uit functie getreden.

27-10-2010: Per 01-10-2010 is bestuurder Willem Cornelis Hendrik Verweerd uit functie

getreden.

07-10-2010: Per 01-10-2010 is bestuurder Gerhard Jan Bouw in functie getreden.

01-10-2010: Per 01-10-2010 is bestuurder Hijmen van Doornspeek in functie getreden.

Amendments 24-11-2010: Per 1-10-2010 is de bevoegdheid van Bestuurder Gerhard Jan Bouw gewijzigd.

Company structure

Relations 13

Emerson Electric Co.

Registration number: 0000

Emerson Electric Nederland B.V.

Teleportboulevard 140

1043EJ Amsterdam

Netherlands

Registration number: 310399390000

EMRSN HLDG B.V.

Teleportboulevard 140

1043EJ AMSTERDAM

Netherlands

Registration number: 300342890000

Emerson Process Management Flow B.V.

Neonstraat 1

6718WX Ede

Netherlands

Registration number: 301968180000

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.99
UK Pound	1	Rs.99.10
Euro	1	Rs.79.03

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SDA

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%)

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.

MIRA INFORM REPORT

Summary

Contact information

Registration

Activities

Relations

Management

Employees

Payments

Key figures

Financial statement

Balance

Analysis

Publications

Company structure

Unit