MIRA
INFORM REPORT
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Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
PENTAIR WATER INDIA PRIVATE LIMITED |
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Registered Office : |
L 52/55, Verna Industries Estate, Phase –II, Verna, Salcete-403722,
Goa |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
26.09.1996 |
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Com. Reg. No.: |
24-2193 |
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CIN No.: [Company
Identification No.] |
U29197GA1996PTC002193 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRP05854C |
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PAN No.: [Permanent
Account No.] |
AABCS8856L |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Components used for water purification |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Pentain USA. Trade relations are fair.
Business is active. General financial position is good. Payments are reported
as usually made as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
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Name : |
Mr.Varprasad |
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Designation : |
Deputy finance Manager |
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Date : |
10.11.2008 |
LOCATIONS
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Registered Office/ Factory: |
L 52/55, Verna Industries Estate, Phase –II, Verna, Salcete-403722,
Goa, India |
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Tel. No.: |
91-832-2883300 |
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Fax No.: |
91-832-2883312 |
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E-Mail : |
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Website : |
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Area : |
Leased |
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Corporate Office/ Regional Sales Offices: |
A-25, Mohan C-operative Industrial Estate, New Delhi-110044, India |
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Tel. No.: |
91-11-66118800 |
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Fax No.: |
91-11-66118822 |
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Regional Sales Offices |
Located at:- Hyderabad |
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Mobile No.: |
91-93800882225 |
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Industrial Business Unit/ CodeLine : |
Located at:- ·
Ahmedabad ·
Bangalore ·
Chennai ·
Delhi |
DIRECTORS
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Name : |
Mr. Babu Suri Gopi |
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Designation : |
Director |
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Address : |
G-6, Arshad Co-operative Society, Madel, Margao-403722, Goa, India |
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Date of Birth/Age : |
23.11.1967 |
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Qualification : |
ICWA/ MBA |
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Experience : |
19 Years |
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Date of Appointment : |
20.05.2000 |
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Previous Employment: |
Sreerman Sethu Madhavan |
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Name : |
Mr. Lynde Louis Ainsworth |
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Designation : |
Director |
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Address : |
3916 Kipling Ave. Society, St. Louis Park, MN- 55416, United States of
America |
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Date of Birth/Age : |
31.08.1947 |
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Date of Appointment : |
07.10.2002 |
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Name : |
Mr. Richard James Cathcart |
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Designation : |
Director |
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Address : |
1695, Fox St, Wayzata, MN-55391, United States of America |
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Date of Birth/Age : |
28.09.1944 |
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Date of Appointment : |
20.12.1999 |
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Name : |
Mr. John MA Changheng |
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Designation : |
Director |
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Address : |
200, Chaun Shen RD, # 140, Yun, Jian Shui, Zuang, Shanghai-PRC200120,
China |
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Date of Birth/Age : |
14.08.1962 |
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Date of Appointment : |
29.06.2006 |
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Name : |
Mr. Manu Anand |
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Designation : |
Director |
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Address : |
Flat No. S-6, Building No. 8, Kamat Classic, Phaes IV, Caranzalem,
Panjim-403002, Goa, India |
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Date of Birth/Age : |
20.10.1968 |
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Qualification : |
BE (Mech)/ PGDIPM/ DMM |
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Experience : |
19 Years |
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Date of Appointment : |
04.12.2006 |
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Last Employment: |
Minda Industries Limited |
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Name : |
Mr. Neeraj Gupta |
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Designation : |
Director- CDR |
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Date of Birth/Age : |
38 Years |
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Qualification : |
MSC/ M Tech/ PHD |
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Experience : |
11 Years |
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Date of Appointment : |
1.10.1998 |
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Last Employment: |
Indian Institute of Technology, Delhi |
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Name : |
Mr. Vadiraj K Meghlal |
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Designation : |
Director-Operation |
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Date of Birth/Age : |
44 Years |
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Qualification : |
M.S. Industrial Enggineering. |
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Experience : |
20 Years |
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Date of Appointment : |
31.09.2007 |
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Last Employment: |
Puralator India Private Limited |
KEY EXECUTIVES
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Name : |
Mr. Maruthi Krishna Venkata Rao Gudivada |
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Designation : |
Secretary |
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Address : |
C-2, Block-A, Sundew Apartments, Margao-403601, Goa, India |
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Date of Birth/Age : |
01.06.1977 |
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Date of Appointment : |
01.07.2005 |
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Name : |
Mr. Hariprasad |
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Designation : |
Vice-President |
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Date of Birth/Age : |
35 Years |
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Qualification : |
BE (Poymer SC and Tech), MBA |
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Experience : |
12 Years |
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Date of Appointment : |
27.03.1997 |
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Last Employment: |
Advanced Composites Private Limited, Goa |
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Name : |
Mr.Varprasad |
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Designation : |
Deputy finance Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 28.06.2008
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Names of Shareholders |
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No. of Shares |
|
EPPS Limited |
|
3999980 |
|
Pentair Water Treatment (OH) Company |
|
28518736 |
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Total |
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32518716 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.06.2008
|
Category |
|
Percentage |
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Foreign holdings (Foreign institutional investor(s),Foreign
companie(s) Foreign financial institution(s), Non-resident indian(s) or
Overseas corporate bodies or Others |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Components used for water purification |
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Exports : |
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Countries : |
·
USA ·
Europe ·
Asia |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
·
USA ·
Singapore ·
China |
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Terms : |
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Selling : |
Credit (60 Days) |
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Purchasing : |
Credit ( 30-60 Days) |
GENERAL
INFORMATION
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No. of Employees : |
600 (Contract Workers 100) |
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Bankers : |
Bank of India, Margaon Branch |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400018,
Maharashtra, India |
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Tel. No.: |
91-22-56679000 |
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Fax No.: |
91-2-56679025 |
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Holding Company : |
Pentair INC USA (Ultimate Holding Company) Pentair Water Treatment (OH) Company, USA |
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Associates/Subsidiaries : |
Pentair Water Treatment Private Limited, Delhi U29197GA1997PTC002373 Fellow
Subsidiaries Companies: ·
Structural North America ·
Pentair Water Belgium, N.V ·
Pentair Water Italy, S.R.I ·
Pentair Pacific Rim (Water) Limited, Hong Kong ·
Pentair Water (Suzhou) Company Limited ·
Pentair Pool Products Incorporation ·
Pentair Water Treatment Plymouth Product Incorporation ·
Fleck Controls Incorporation ·
Pentair Electronic Packaging ·
Pentair Pump Group – Aurora ·
Pentair Water Filtration UK ·
Pentair Water Filtration Incorporation ·
Pentair Water France ·
Pentair Water Treatment – Brookfield ·
Pentek/ Plymouth Products – USA ·
Pentair Pumps S.P.A ·
STA-RITE Industries, LLC ·
Shurflo LLC ·
Hoffman Enclosures Incorporation ·
Pentair Water Australia ·
Pentair Enclosures China ·
Pentair Enclosures USA ·
Pentair Taunus Electrometalugica Limited ·
Pentair Water Middle East ·
Hypro LLC ·
Bejjing Pentair Water ·
Pentair Technical Products China ·
Pentair International LLC ·
Schroff Gmbh ·
Porous Media Limited |
CAPITAL STRUCTURE
As on 30.06.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
24000000 |
Equity Shares |
Rs. 10/- each |
Rs. 240.000 Millions |
|
22500000 |
Preference Shares |
Rs. 10/- each |
Rs. 225.000 Millions |
|
|
Total |
|
Rs. 465.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18211100 |
Equity Shares |
Rs. 10/-
each |
Rs. 182.111
Millions |
|
14307616 |
Preference Shares |
Rs. 10/-
each |
Rs. 143.076
Millions |
|
|
Total |
|
Rs. 325.187 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
325.187 |
325.187 |
325.187 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
728.106 |
611.046 |
355.686 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1053.293 |
936.233 |
680.873 |
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LOAN FUNDS |
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1] Secured Loans |
0.308 |
0.691 |
0.992 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.308 |
0.691 |
0.992 |
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DEFERRED TAX LIABILITIES |
10.941 |
9.091 |
7.342 |
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TOTAL |
1064.542 |
946.015 |
689.207 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
280.191 |
297.337 |
302.769 |
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Capital work-in-progress |
5.139 |
2.713 |
0.784 |
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INVESTMENT |
0.074 |
0.074 |
0.074 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
132.734
|
104.024 |
92.566 |
|
|
Sundry Debtors |
424.650
|
386.681 |
259.673 |
|
|
Cash & Bank Balances |
499.153
|
314.534 |
183.033 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
78.436
|
55.185 |
60.096 |
|
Total
Current Assets |
1134.973
|
860.424 |
595.368 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
319.200
|
173.148 |
156.709 |
|
|
Provisions |
36.635
|
41.385 |
53.359 |
|
Total
Current Liabilities |
355.835
|
214.533 |
210.068 |
|
|
Net Current Assets |
779.138
|
645.891 |
385.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.280 |
|
|
|
|
|
|
|
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TOTAL |
1064.542 |
946.015 |
689.207 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
|
|
Sales Turnover |
|
1311.820 |
1315.170 |
|
|
Other Income |
|
0.000 |
0.000 |
|
|
Total Income |
|
1311.820 |
1315.170 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
162.570 |
273.770 |
|
|
Provision for Taxation |
|
45.720 |
18.540 |
|
|
Profit/(Loss) After Tax |
|
117.060 |
255.220 |
|
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
|
979.550 |
1.098 |
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
|
277.866 |
273.777 |
|
|
Stores & Spares |
|
7.572 |
12.020 |
|
|
Capital Goods |
|
0.284 |
5.110 |
|
Total Imports |
|
285.722 |
290.907 |
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
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Depreciation & Amortization |
|
48.020 |
42.490 |
|
|
Other Expenditure |
|
1101.230 |
998.910 |
|
Total Expenditure |
|
1149.250 |
1041.400 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
8.92
|
19.40 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.39
|
20.82 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.49
|
23.65 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.29 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.34
|
0.23 |
0.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.38
|
4.01 |
2.83 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATING RESULTS
AND FUTURE OUTLOOK:
During the year, the weakness in dollar has severely impacted the sales
realization that resulted in the marginal decrease of 0.25% in the turnover of
the company as compared to last year. However, in terms of dollars, the company
registered a growth of more than 10% compared to last year. But the increase in
turnover could not generate more revenue due to weakening of dollar, there by
less realization.
The profit of the company dipped to Rs. 16.250 Millions as compared to
that of Rs. 27.370 Millions in the last year. The factors that caused to the
decrease were increase in the input costs, strong rupee leading to lesser
realization of export bills and intense international competition.
As the company is a 100% EOU, the exchange rate fluctuation has an important
bearing on its profitability. The adverse effect of exchange fluctuation is
largely off set during the current year as dollar has appreciated by nearly 8%
since December 2007. The company plans to rationalize the product mix for
higher productivity and lower production cost. It is expected that the company
would be able to meet the challenge of growth in turnover and increase in
profitability.
Trade References:
·
Thermax India Private Limited, Delhi
·
B.I Marketing, Chennai
·
UNOX Exchange, Delhi House, Mumbai etc
Fixed Assets:
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Office Equipment
·
Furniture and Fixture
·
Motor Vehicles
·
Goodwill
·
Computer Software
AS PER WEBSITE
Profile:
Subject is a diversified
operating company headquartered in Minnesota , USA serving customers worldwide
in its core businesses of Water technologies and Technical Products. With
approximately 15,000 employees and a portfolio of 30 brands, the annual
turnover of the Pentair group is fast approaching $3 billion. The company
operates from more than 50 locations in Europe, Asia and Australia.
About Pentair Water India
Pentair Inc. with its initial thrust on industrial water management
entered the Indian market in 1998 through its 100% subsidiary Pentair Water
India and established a state of the art manufacturing facility in Goa,
corporate office in Delhi and regional offices in Ahmedabad, Bangalore,
Chennai, Kolkatta, Mumbai and Hyderabad.
Subject is a manufacturer and exporter of water treatment
components in the country with revenues growing at 40% per annum over the last
four years. Its products adhere to highest international quality standards of
manufacturing and meet ISO 9001 standards and the international certifications
held by the company include ASME, NSF and CE of Europe. At present, Pentair
Water India provides water treatment solutions for both industrial/commercial
applications and for the residential market. Pentair Water India is the
country's largest exporter of water treatment equipment (70% of the products
are exported across the globe) and it also supplies critical products to the
world's largest and most prestigious water treatment projects.
PWI Business Units
Residential
As part of its strategy to reach out to individual homes, Pentair Water India has launched its
range of residential systems to provide safe, clean water to families across
the country. In addition to reverse osmosis based drinking water solutions,
Pentair water India has a range of innovative home water solutions which can
make a significant difference in people's daily interaction with water in their
homes.
Industrial
Pentair Water India is a leading manufacturer and distributor of water
treatment components and systems in the country. Apart from the components
business, Pentair Water India has recently entered the growing
industrial/commercial systems market to provide relevant, world class
solutions. With its innovative technologies and commitment to world class
standards, Pentair Water India provides comprehensive and effective water
treatment solutions for a range of industrial, commercial and institutional
applications.
CodeLine
CodeLine is the world's leading brand of
membrane housings built to maximize the performance of water purification
systems. For over 3 decades, CodeLine has been the most trusted brand and used
in some of the most prestigious Desalination projects. CodeLine is manufactured
at the state-of-the-art manufacturing facility in Goa to exacting standards as
per National Sanitation Foundation (NSF) and American Society of Mechanical
Engineers (ASME) specifications.
The Goa factory - commitment to
operational excellence
Pentair Water India has a state-of-the-art manufacturing
facility at Verna, Goa over a sprawling 300,000 sq m plot with more than
150,000 sq m of built up area. The plant is the largest membrane housings
manufacturing facility in the world. It has 6 product lines which operate to
stretched capacities and boasts of one of the best safety records in the
region. About 400 people work at the plant in Goa and employee morale is high.
The flagship brand of the company, CodeLine membrane housings are manufactured to
exacting specifications at this plant, as are Structural FRP and composite
tanks. Being an export oriented unit, close to three quarters of the output is
exported. The certifications held by Pentair Water India include ISO 9001:2000,
NSF, ASME and CE.
Pentair's commitment to
technology - the CDR
With the aim of remaining leaders and pioneering technology
in the water treatment industry, Pentair has set up a Center for Design and
Research (CDR) in India . The center employs engineers from some of the leading
institutes in India , focusing their efforts on enabling Pentair to change
ideas into products and problems into solutions. The center currently has a
team of 110 qualified engineers which caters to the worldwide requirements of
the Pentair group of companies.
Global Brand Portfolio
Pentair brands are
associated with innovative, world class quality products, which adhere to the
highest international standards. Functionality, quality, style and
dependability have earned Pentair brands leadership in the market they serve
and a preferred status among buyers.
Pentair has a large portfolio of trusted, global brands
serving the Pumps, Filtration and Pool markets. Pentair Water India is the one
point contact to access these global brands in India . If you want to know more
about Pentair's range of global brands, useful web links pertaining to these
brands are indicated below.
·
Filtration
·
Pool
·
Pump
·
Others
Market Severed
Subject is a manufacturer and distributor of water treatment
components and systems in the country. Its world class components are supplied
to most of the big and prestigious projects, both in India as well as across
the globe.
Based on its
global experience and innovative technologies, Pentair Water India provides
relevant, practical and cost effective water treatment solutions for a range of
applications across industries, institutions and households.
Code of Conduct
As an independent, publicly owned company, Pentair created
this Code to guide its development and the conduct of its business.
·
They will manage their businesses according to the highest
business, ethical, moral and civic standards that apply to a public company.
·
They will operate their businesses to earn the respect of
the shareholders, employees, plant communities, customers, suppliers and all
others with a stake in the success.
·
They intend to make Pentair a top-performing company,
managed and operated for the long-term benefit of all its constituents.
The Code of Business Conduct and Ethics is the foundation
for numerous specific practices, policies and guidelines that determine how
Pentair and its employees conduct their day-to-day business. The Code is intended
to set the tone and spirit for how Pentair operates.
As a company, by following the spirit of the Code, Pentair
creates an operating environment where management sets clear goals, company
leadership is engaged, and all operations are accountable for their performance
and practices. The business style is practical, with an emphasis on openness,
informality and candid, conversational exchanges among employees. They expect
all employees equally to uphold the Company's standards for ethics, integrity and
work practices.
Know
the Water
The fact that water is essential to the being needs little
mention. About 75% of planet earth and almost 90% of the human body comprises
this vital liquid. Water is a crucial resource and demands a deep understanding
and concern.
Many of them, who once gave little or no thought to knowing
more about it, are now asking pertinent questions - How safe is my drinking
water? What is being done to improve the security of public water systems?
Where does my drinking water come from, and how is it treated? What can I do to
help protect my drinking water?
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.32 |
|
UK Pound |
1 |
Rs.74.20 |
|
Euro |
1 |
Rs.60.73 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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%)
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|