MIRA INFORM REPORT

Report No. :	487945
Report Date :	27.01.2018

IDENTIFICATION DETAILS

Name :	HYDRANAUTICS
Registered Office :	401 Jones Rd, Oceanside CA 92058, USA
Country :	United States
Date of Incorporation :	1963
Legal Form :	Corporation
Line of Business :	Manufactures and supplies high-performance membrane products for potable water, boiler feedwater, industrial process water, wastewater treatment, surface water treatment, seawater desalination, residential water, electronic rinse water, agricultural irrigation, and pharmaceuticals applications.
No. of Employees :	450

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
United States	A1	A1

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

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $57,300. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures.

In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and further reduce them as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increases. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With US GDP growth below 2%, the Fed opted to raise rates three times since then, and in mid-June 2017, the range for the target rate stood at 1% to 1.25%.

Source : CIA

STATUTORY INFORMATION
Legal Name:	HYDRANAUTICS
Trade Names:	HYDRANAUTICS
ID:	C0739226
Date Created:	1963
Date Incorporated:	06/30/1975
Legal Address:	401 Jones Rd Oceanside CA 92058, USA
Operative Address:	401 Jones Rd Oceanside CA 92058, USA
Telephone:	760-901-2500
Fax:	760-901-2578
Legal Form:	Corporation
Email:	info@hydranautics.com
Registered in:	CALIFORNIA
Website:	www.membranes.com
Contact:	Mr. Brett Andrews - Chief Executive Officer and Managing Director of The Nitto Global Membrane Division
Staff:	450
Activity:	NAICS 1: All Other Miscellaneous Chemical Product and Preparation Manufacturing NAICS 2: Other Commercial and Service Industry Machinery Manufacturing SIC 1: Chemical Preparations, Nec SIC 2: Water Treatment Equipment, Industrial
Banks:	BANK OF AMERICA
History:	Hydranautics, Inc. was founded in 1963 and is based in Oceanside, California
ARENT Company:	Hydranautics, Inc. operates as a subsidiary of: Nitto Denko Corporation Grand Front Osaka 33rd Floor 4-20, Ofuka-cho Kita-ku Osaka,  530-0011 Japan
PRINCIPAL ACTIVITY
	Hydranautics, Inc. manufactures and supplies high-performance membrane products for potable water, boiler feedwater, industrial process water, wastewater treatment, surface water treatment, seawater desalination, residential water, electronic rinse water, agricultural irrigation, and pharmaceuticals applications.
Products/Services description:	It offers reverse osmosis, nanofiltration, ultrafiltration/microfiltration, and process separation products; end-to-end support for membrane systems; and IMSDesign, a hydranautics membrane projection software. The company serves optical media, semiconductors, flexible circuits, electrical insulation, packaging, insulation, automobiles, and healthcare markets.
Brands:	HYDRANAUTICS
Sales are:	Wholesale
Clients:	Grupo Novem SA De Cv Lauda SA Paraguaya Aquafree Srl. Reliance Industries Ltd. Uem India Pvtltd.
Suppliers:	Nitto Denko Corporation Nitto Denko (Shanghai Songjiang) Co. Hydranautics Bv Pentair Water Treatment
Operations area:	National and International
The company imports from	JAPAN CHINA NETHERLANDS INDIA
The company exports to	MEXICO PARAGUAY INDIA
The subject employs	450 employees
Payments:	Regular
LOCATION
Headquarters :	401 JONES RD OCEANSIDE CA 92058, USA
Comments on Address:	This business is located at 401 Jones Rd, a commercial address in Oceanside, CA. The industrial property was last sold on December 10, 1999 for $7.6 million USD. The light industrial facility has an estimated value of $6.36 million USD, which places it among the most valuable 10% of industrial properties in the area. When the building was last assessed in 2012, the assessment value was $6.17 million USD. With 99,999 square feet of space, this building is one of the largest industrial properties in the 92058 zip code. The average industrial property in the area has around 2,956 square feet.
Branches:	No other branches were found.
Related Companies:	Nitto Denko (Shanghai Songjiang) Co. No.716, Lianyang Road, Songjiang Industrial Zone, Shanghai 201613, China Hydranautics Bv WILHELMINASINGEL 116, MAASTRICHT 6221 BL NL
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	NA
Shareholders:	The company does not disclose information on shareholders. The following information has been obtained through private sources. Nitto Denko Corporation Grand Front Osaka 33rd Floor 4-20, Ofuka-cho Kita-ku Osaka, 530-0011 Japan This information was confirmed by the company.
Management:	Mr. Brett Andrews - Chief Executive Officer and Managing Director of The Nitto Global Membrane Division Mr. K. Scott - Vice President of Business Operations Dr. Bhasker Davé - Vice President of Sales & Marketing Jannies S Burlingame - Vice President of Administration Francisco Dominguez - Senior Director Of Engineer And Maintenance
FINANCIAL INFORMATION
	The company does not make its financial statements public. The following information has been provided by private sources:
USD 2016
Revenue	50 000 000
Cash flow	Normal
LEGAL FILINGS
PATENTS	Interfacially synthesized reverse osmosis membrane containing an amine salt and processes for preparing the same Patent number: 4872984 Abstract: The present invention relates to an interfacially synthesized reverse osmosis membrane useful for the separation of fluid mixtures and solutions. In particular, the present invention relates to an aromatic polyamide water permeable membrane containing an amine salt therein, which is useful for desalination of an aqueous solution. The present invention also relates to processes for preparing the membrane. Type: Grant Filed: September 28, 1988 Date of Patent: October 10, 1989 Assignee: Hydranautics Corporation Inventor: John E. Tomaschke Interfacially synthesized reverse osmosis membrane containing an amine salt and processes for preparing the same Patent number: 4948507 Abstract: The present invention relates to an interfacially synthesized reverse osmosis membrane useful for the separation of fluid mixtures and solutions. In particular, the present invention relates to a polyamide water permeable membrane containing a monomeric amine salt therein, which is useful for desalination of an aqueous solution. The present invention also relates to processes for preparing the membrane. Type: Grant Filed: October 6, 1989 Date of Patent: August 14, 1990 Assignee: Hydranautics Corporation Inventor: John E. Tomaschke Method for reducing boron concentration in high salinity liquid Publication number: 20030230531 Abstract: A method of treating a high salinity liquid, such as seawater, containing boron is provided. The method includes adjusting the pH of the liquid to about 8.5 to about 9.5, optionally adding a scale inhibitor to the liquid, passing the liquid through a reverse osmosis device, and recovering a permeate having a boron concentration less than about 1 ppm. Type: Application Filed: July 3, 2002 Publication date: December 18, 2003 Applicant: Hydranautics and Nitto Denko Corporation Inventors: Mark Wilf, Craig R. Bartels, Masahiko Hirose
GOVERNMENT CONTRACTS	Government Contractor: HYDRANAUTICS INC Name & Address: 401 JONES RD OCEANSIDE, CA 92054 Number of Defense Contracts Awarded : 1 Dollar Amount of Defense Contracts Awarded: $286,655
CASES	No found.
TRADEMARKS	QUALSEP membrane filters for commercial and industrial use in processing sugars Owned by: HYDRANAUTICS Serial Number: 76207702 VIRABLOC Filter units for residential, commercial and industrial water filtration Owned by: HYDRANAUTICS Serial Number: 76455032 Image Trademark Water purifying apparatus and water purification installations for reverse osmosis applications; water filters, namely,… Owned by: HYDRANAUTICS Serial Number: 77238326
RENEWAL HISTORY	Document Type File Date SI-COMPLETE 01/12/2017 SI-COMPLETE 08/17/2015 RESTATED REGISTRATION 04/14/2006 AMENDMENT 01/01/1984 MERGER 12/31/1982 AMENDMENT 02/22/1977 AMENDMENT 04/02/1976 REGISTRATION 06/30/1975
UCC	No records found.
OFAC Sanctions List Search	The company is not listed in the OFAC list.
SUMMARY
	Founded in 1963, Hydranautics is a large-sized organization in the chemical preparation company’s industry located in Oceanside, CA. It has 450 full time employees and generates $50 million in annual revenue. The company operates nationally and internationally, mainly importing form Japan, China, the Netherlands and India. It is ACTIVE in business with no negative records.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	Priya Johnson
POSITION	Operations
COMMENTS	She confirmed the name of the company, the address of the headquarters and location, the date of creation of the company, the number of employees and the name of the Chief Executive Officer.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.50
UK Pound	1	INR 90.92
Euro	1	INR 79.07
US Dollar	1	INR 63.59

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.