MIRA INFORM REPORT

Report No. :	498111
Report Date :	20.03.2018

IDENTIFICATION DETAILS

Name :	ARC MACHINES, INC.
Registered Office :	14320 Arminta Street, Panorama City CA 91402 USA
Country :	United States
Financials (as on) :	2016 [Summarized]
Date of Incorporation :	15.03.1976
Legal Form :	Domestic Stock
Line of Business :	Subject is a mid-sized organization in the welding apparatus manufacturers industry located in Pacoima, CA. Arc Machines, Inc. is an American company that designs, manufactures and distributes advanced automated orbital welding equipment, systems and services.
No. of Employees :	190

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+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist

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 (30.09.2017)	Current Rating (31.12.2017)
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:

ARC MACHINES, INC.

Trade Name:

AM INC.

AMI

ID:

C0780461

Date Created:

1976

Date Incorporated:

03/15/1976

Legal Address:

14320 Arminta Street

Panorama City CA 91402 USA

Operative Address:

14320 Arminta Street

Panorama City CA 91402 USA

Telephone:

818-896-9556

(512) 810-1944

Fax:

818-890-3724

Legal Form:

Domestic Stock

Email:

kevin.wunsch@arcmachines.com

Registered in:

CALIFORNIA

Website:

www.arcmachines.com

Contact:

Stephen Ripp, Chief Executive Officer

Staff:

190

Activity:

NAICS 1: Welding and Soldering Equipment Manufacturing

NAICS 2: Motor and Generator Manufacturing

NAICS 3: Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing

SIC 1: Welding And Cutting Apparatus And Accessories, Nec

SIC 2: Motors And Generators

SIC 3: Speed Changers, Drives, And Gears

BANKS

The company does not make its banking data public

HISTORY

The company was founded in 1976 by Mr. M.E. (Mindy) Gedgaudas and Mr. L.V. (Lou) Reivydas, joined shortly thereafter by V.K. (Vic) Fukumoto.

Key Developments:

1985 Arc Machines Europe - Gland, Switzerland.

1991 Arc Machines UK, Ltd. - Daventry, United Kingdom.

1993 Arc Machines, GmbH. - Much, Germany.

2008 Acquisition of Exel Orbital Products in the U.S.A.

As of December 31, 2016, Arc Machines, Inc. operates as a subsidiary of Colfax Corporation.

PRINCIPAL ACTIVITY

Arc Machines, Inc. is a mid-sized organization in the welding apparatus manufacturers industry located in Pacoima, CA. Arc Machines, Inc. is an American company that designs, manufactures and distributes advanced automated orbital welding equipment, systems and services.

Products/Services description:

Arc Machines, Inc. designs, manufactures, and distributes automated orbital welding equipment. The company offers power supplies and weld heads, fusion welding products, narrow groove welding products, pipe welding products, inside diameter welding products, tube-to-tube sheet welding products, integrated systems, custom engineered products, and accessories. It provides its products for butt welding (with filler materials), socket or fillet welding, weld overlay or cladding, and automated or robotic weld applications. The company offers services in the areas of training, repair, leasing/rental, welding and custom engineering, manufacturing, and equipment maintenance services. It serves aerospace, brewery, food/dairy/beverage, fossil, heat exchanger manufacturing, nuclear, offshore, petrochemical, pharmaceutical/biotechnology/medical, power generation, pulp/paper, semiconductor, shipbuilding, defense, oil/gas installation, vessel manufacturing, wastewater treatment, and other industries through representatives, and distribution and service networks worldwide.

Brands:

AMI

Sales are:

Wholesale

Clients:

Industries using automated orbital welding:

Aerospace

Brewery

Food/Dairy/Beverage

Fossil

Heat Exchanger Manufacturing

Nuclear

Offshore

Oil & Gas

Petrochemical

Pharmaceutical

Power Generation

Pulp/Paper

Semiconductor

Shipbuilding

Vessel Manufacturing

Biotechnology

Medical

Wastewater Treatment

TECNINGENIERIA LTDA

Colombia

CONSORCIO ITS

Colombia

TECNINGENIERIA LTDA

Colombia

Equipos Generales Universales Sa De Cv

Mexico

Suppliers:

ARC MACHINES UK LTD.

UK

Ding Zing Chemical Products Co., Ltd.

Taiwan

Equipment Fabricators

India

Rothe Erde Gmbh

Germany

Operations area:

National and international

The company imports from

UK, Taiwan, India and Germany

The company exports to

Colombia and Mexico

The subject employs

190 employees

Payments:

Regular

LOCATION

Headquarters :

14320 ARMINTA STREET

PANORAMA CITY CA 91402

USA

Comments:

NA

Branches:

The company does not have branches

Main Competitors

Technical Devices Company

560 Alaska Ave

Torrance, California

90503-3904

Maitlen & Benson, Inc.

1395 Obispo Ave

Long Beach, California

90804-2509

Related Companies:

The company has offices in Switzerland, Germany, the United Kingdom, and India plus a network of domestic and international representatives in more than 55 countries worldwide.

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:

NO

Capital:

NA

Shareholders:

This is a private company. The company does not disclose information on shareholders. The following information has been obtained through private sources and could not be confirmed:

As of December 31, 2016, Arc Machines, Inc. operates as a subsidiary of:

Colfax Corporation.

Colfax Corporation operates as a diversified industrial technology company worldwide.

Address: 420 National Business Parkway, 5th Floor, Annapolis Junction, MD 20701, United States

Founded in: 1860

Full-time employees: 14,300 Employees

Phone: 301-323-9000

Fax: 301-323-9001

Website: www.colfaxcorp.com

Direct Holders of Colfax Corporation:

Direct Holders
Name	Shares	Date Reported
ALLENDER PATRICK W	49,568	Dec 28, 2017
KAMBEYANDA SHYAM	48,144	May 12, 2016
JORDAN RHONDA L	46,78	Dec 28, 2017
GAYNER THOMAS SINNICKSON	44,681	Dec 28, 2017
TREROTOLA MATTHEW L.	44,67	Jan 1, 2018
PRYOR DANIEL A	40,224	Dec 18, 2017
PUCKETT A. LYNNE	30,025	Jan 15, 2018
PERFALL A CLAYTON	29,631	Dec 28, 2017
BRANNAN C SCOTT	29,041	Feb 23, 2016
HIX CHRISTOPHER M	18,018	Jul 28, 2016

Institutional and Mutual Fund Holders of Colfax Corporation:

Top Institutional Holders
Holder	Shares	Date Reported	Value
Price (T.Rowe) Associates Inc	11,883,551	Dec 30, 2017	472,371,152
BDT Capital Partners, LLC	10,702,769	Dec 30, 2017	425,435,067
Principal Financial Group, Inc.	8,279,887	Dec 30, 2017	329,125,508
Vanguard Group, Inc. (The)	6,727,901	Dec 30, 2017	267,434,064
Victory Capital Management Inc.	4,487,041	Dec 30, 2017	178,359,879
Blackrock Inc.	4,060,600	Dec 30, 2017	161,408,850
Bares Capital Management Inc	3,599,952	Dec 30, 2017	143,098,092
FMR, LLC	3,074,365	Dec 30, 2017	122,206,008
Dimensional Fund Advisors LP	2,784,131	Dec 30, 2017	110,669,207
Massachusetts Financial Services Co.	2,441,211	Dec 30, 2017	97,038,137
Top Mutual Fund Holders
Holder	Shares	Date Reported	Value
Principal Mid Cap Fund	6,333,461	Dec 30, 2017	251,755,074
Price (T.Rowe) Mid Cap Growth Fund	4,732,376	Dec 30, 2017	188,111,946
Vanguard Small-Cap Index Fund	1,852,152	Jun 29, 2017	70,455,863
Vanguard Total Stock Market Index Fund	1,834,579	Jun 29, 2017	69,787,386
Victory Portfolios-Victory Munder Mid Cap Core Growth Fund	1,319,700	Jun 29, 2017	50,201,389
Massachusetts Investors Growth Stock Fund	1,300,654	Aug 30, 2017	50,452,369
Vanguard Extended Market Index Fund	1,242,316	Jun 29, 2017	47,257,701
Vanguard Small Cap Value Index Fund	1,202,067	Jun 29, 2017	45,726,629
TIAA-CREF Funds-Large-Cap Value Fund	1,160,201	Jul 30, 2017	47,046,149
Price (T.Rowe) Institutional Mid-Cap Equity Growth Fund	1,084,699	Dec 30, 2017	43,116,785

Management:

Stephen Ripp, Chief Executive Officer

Lisa Lorentzian, Chief Financial Officer

Yosya Shvager, Vice President of Production

David Sherington, Principal

Wedge Oldham, Chief Software and Hardware Engineer

Doug Solomon, Chief Operations Officer

FINANCIAL INFORMATION

The company does not make its financial statements public. The following information has been provided by private sources:

USD 2016

Sales

52,000,000

Cash flow

Normal

We also attach the latest financial statements of

Colfax Corporation

LEGAL FILINGS

Patents:

System and process for video monitoring a welding operation

Patent number: 5255088

Abstract: A configuration or system of lenses for use in an arc welding environment variably filters light so that the dramatic contrasts of light present in the welding area are reduced for better remote viewing. A photochromic lens forms a negative image of the welding area. The negative image of the photochromic lens serves as a variable density optical filter to reduce the brightness of the image incident upon the photochromic lens. A first lens initially gathers and focusses the light upon the photochromic lens. Subsequent lenses further prepare the image for camera reception by eliminating ultraviolet (UV) light, by eliminating light at spectral lines, and/or by enhancing the depth of field of the image.

Type: Grant

Filed: January 29, 1992

Date of Patent: October 19, 1993

Assignee: Arc Machines, Inc.

Inventor: Gary J. Thompson

Trademarks:

AMI - Trademark Details

Status: 800 - Registered And Renewed

Image for trademark with serial number 78633485

Serial Number78633485

Registration Number3212321

Word Mark AMI

Status800 - Registered And Renewed

Status Date2016-11-07

Filing Date2005-05-19

Registration Number3212321

Registration Date2007-02-27

Mark Drawing4000 - Standard character mark Typeset

Published for Opposition Date2006-12-12

Attorney Name Barbara A. Friedman

Law Office Assigned Location CodeL10

Employee Name CLARK, ROBERT C

AMI ARC MACHINES, INC. - Trademark Details

Status: 800 - Registered And Renewed

Image for trademark with serial number 78633503

Serial Number78633503

Registration Number3214820

Word Mark AMI ARC MACHINES, INC.

Status800 - Registered And Renewed

Status Date2016-11-07

Filing Date2005-05-19

Registration Number3214820

Registration Date2007-03-06

Mark Drawing5000 - Illustration: Drawing with word(s)/letter(s)/number(s) in Stylized form Typeset

Published for Opposition Date2006-12-19

Attorney Name Barbara A. Friedman

Law Office Assigned Location CodeM10

Employee Name FINE, STEVEN R

ARC MACHINES INC. - Trademark Details

Status: 800 - Registered And Renewed

Image for trademark with serial number 78633520

Serial Number78633520

Registration Number3166917

Word Mark ARC MACHINES INC.

Status800 - Registered And Renewed

Status Date2016-09-27

Filing Date2005-05-19

Registration Number3166917

Registration Date2006-10-31

Mark Drawing4000 - Standard character mark Typeset

Attorney Name Barbara A. Friedman

Law Office Assigned Location CodeM20

Employee Name GRAY, CAROLYN C

Filling History:

Document Type	File Date
SI-COMPLETE	01/20/2018
SI-COMPLETE	01/17/2017
MERGER	01/16/2008
REGISTRATION	03/15/1976

Lawsuits:

ARC Machines Inc v. Industrial Solutions & Innovations LLC et al

Plaintiff: ARC Machines Inc

Defendant: Industrial Solutions & Innovations LLC, Does and Darrell Whittenberg

Case Number: 2:2013cv09473

Filed: December 26, 2013

Court: California Central District Court

Presiding Judge: Dale S. Fischer

Referring Judge: Carla Woehrle

Nature of Suit: Contract: Other

HOLTEC INTERNATIONAL et al v. PANDJIRIS, INC. et al

Plaintiff: HOLTEC INTERNATIONAL and HOLTEC MANUFACTURING DIVISION, INC.

Defendant: PANDJIRIS, INC., ARC MACHINES, INC. and JOHN DOES 1-10

Case Number: 1:2017cv00666

Filed: January 20, 2017

Court: New Jersey District Court

Office: Camden Office

County: Burlington

Presiding Judge: Renee Marie Bumb

Referring Judge: Joel Schneider

Nature of Suit: Other Contract

Cause of Action: 28:1332

Jury Demanded By: Plaintiff

UCC:

No records found

OFAC

Sanctions List Search:

The company is not listed in the OFAC list.

SUMMARY

Founded in 1976, Arc Machines, Inc. is a mid-sized organization in the welding apparatus manufacturers industry located in Pacoima, CA. Arc Machines, Inc. is an American company that designs, manufactures and distributes advanced automated orbital welding equipment, systems and services.

The company has 190 full-time employees and generates an estimated USD 52 million in annual revenue.

The company imports from UK, Taiwan, India and Germany, and exports to Colombia and Mexico, operating within national and international markets.

As of December 31, 2016, Arc Machines, Inc. operates as a subsidiary of Colfax Corporation.

This has been an ACTIVE company incorporated in California in 1976.

RISK INFORMATION

DEBTS

Controlled

PAYMENTS

Regular

CASH FLOW

Normal

STATUS

ACTIVE

INTERVIEW

NAME

James

POSITION

Operator

COMMENTS

She confirmed legal name, trade name, address, website, telephone, principal activity and operations area.

She explained that the company does not have branches.

She also said that Mindaugas Gedgaudas is no longer the company´s President.

She also confirmed related companies.

She could not confirm neither staff number nor major holders.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.04
UK Pound	1	INR 90.55
Euro	1	INR 79.77
US Dollar	1	INR 65.24

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

INFORMATION DETAILS

Analysis Done by :	PRI
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)

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.