MIRA INFORM REPORT

Report Date :

05.07.2011

IDENTIFICATION DETAILS

Name :	OSWAL PUMPS LIMITED [w.e.f. 24.10.2006]
Formerly Known As :	OSWAL PUMPS PRIVATE LIMITED
Registered Office :	C – 5/2 A, Rana Partap Bagh, Opposite CC CPLONY, Delhi – 110007
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.07.2003
Com. Reg. No.:	55-121307
Capital Investment / Paid-up Capital :	Rs.57.766 Millions
CIN No.: [Company Identification No.]	U74999DL2003PTC121307
TAN No.: [Tax Deduction & Collection Account No.]	DELO02982A
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pumps and Motors.
No. of Employees :	250 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 726000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.. The Company can be considered normal for business dealings at usual trade terms and conditions.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Narendra
Designation :	Accounts Manager
Contact No.:	91-184-6616600
Date :	27.06.2011

LOCATIONS

Registered Office :	C – 5/2 A, Rana Partap Bagh, Opposite CC CPLONY, Delhi – 110007, India
Tel. No.:	91-184-6616600
E-Mail :	Bhatiar9@yahoo.co.in
Corporate Office [New] :	21 Syndicate House, 3 Old Rohak Road, New Delhi, India
Mobile No.:	91-9416172472 (Mr. Nilesh Kumar)
E-Mail :	contact@oswalpumps.com accounts_oswalpumps@yahoo.com
Website :	www.oswalpumps.com
Area :	300 sq.ft
Location :	Rented
Corporate Office [Old] :	Oswal Estate, 73/1, Mile Stone, G.T. Road, Oswal Chowk, Karnal – 132001, Haryana, India
Tel. No.:	91-184-2221502 / 03 / 04 / 05 / 06 / 07
Fax No.:	91-184-2221501
Area :	Approx. 2 Lacs Sq. Feet
Location :	Owned

DIRECTORS

As on 28.09.2010

Name :	Mr. Vivek Gupta
Designation :	Director
Address :	H. No. 831, Sector 13, Urban Estate, Huda, Karnal – 132001, Haryana, India
Date of Birth/Age :	26.06.1969
Qualification :	B. Com, LLB
Date of Appointment :	22.09.2006
DIN :	00172835
Other Directorship :	Padam Cotton Yarns Limited CIN : L17112HR1997PLC033641
Name :	Mr. Padam Sain Gupta
Designation :	Director
Address :	H. No. 831, Sector 13, Urban Estate, Huda, Karnal – 132001, Haryana, India
Qualification :	Under Graduate
Date of Appointment :	22.09.2006
DIN :	00172840
Name :	Mr. Rajeev Gupta
Designation :	Director
Address :	H. No. 871, Sector 13, Urban Estate, Huda, Karnal – 132001, Haryana, India
Qualification :	B. Com
Date of Appointment :	15.07.2003
DIN :	00172828

KEY EXECUTIVES

Name :	Mr. Narendra
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2010

Names of Shareholders	No. of Shares
Mr. Rajiv Gupta	2000
Ess Aar Corporate Services Private Limited, India	965000
Mr. Padam Gupta	1406000
Mrs. Rekha Gupta	100000
Mrs. Radhika Gupta	100000
Shorya Trading Company Private Limited, India	3201650
Vivek Gupta	2000
Blue Whale Trading and Investments Private Limited, India	72500
Total	5849150

As on 28.09.2010

Category	Percentage
Directors / Relatives Of Directors	27.53
Bodies Corporate	72.47
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pumps and Motors.
Products :	· Stainless Steel Submersible Pumps · Stainless Steel Submersible Motors · Booster Pumps · Mono Block Pumps · Centrifugal Pumps · Borewell Submersible Pumps Sets o Oil Filled Submersible Pumps Sets (Single and Three Phase-80 and 100 mm) o Water Filled Submersible Pumps (Single and Three Phase-80 mm to 200 mm) · Horizontal Open well Submersible Pumps · Re-Generative Self Priming Monoblock Pumps Sets o Re-Generative Self Priming Monoblock Pumps-1440 RPM o Re-Generative Self Priming Monoblock Pumps-2880 RPM · Centrifugal Mono Block Pumps o Centrifugal Monoblock Pumps-1440 RPM o Centrifugal Monoblock Pumps-2880 RPM · Squirrel cage Induction Motor Single Phase and Three Phase o Squirrel cage Induction Motor Single Phase-Model TEFC o Squirrel cage Induction Electric Motors-Three Phase · Submersible Winding Wires and Cables · Noryl Impellers and Diffusers for V3/V4 Submersible Pumps · Other Products o Electrical Stampings: Aluminium Die Casted Rotors, etc. o Carbon Thrust Bearing o Investment Castings o Submersible Winding Wires and Cables
Terms :
Selling :	Cash, Credit (30 Days)
Purchasing :	Cash, Credit (30 Days)

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Submersible Pumps, Monobloc Pumps, Electric Motors, etc	Nos.	---	---	186510

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• End Users
• OEM’s

No. of Employees :

250 [Approximately]

Bankers :

• Punjab National Bank, Namaste Chowk, Karnal - 132001, Haryana, India
• ICICI Bank Limited
• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Punjab National Bank CC (Secured against hypothecation of Stocks, Debtors and Other Current Assets as well as Personal Guarantee of Directors of the company )	299.452	261.970
Punjab National Bank T/L (Secured against hypothecation of Building and Personal Guarantee of Directors of the company)	29.587	39.672
From ICICI Bank Limited (Secured against hypothecation of Car)	0.000	0.167
Total	329.039	301.809
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors, Shareholders, Their Friends	158.165	117.516
Total	158.165	117.516

Banking Relations :	---
Auditors :
Name :	Viney Goel and Associates Chartered Accountant
Address :	B-2, Purshotam Market, Near Chandranchal Banquet Hall, Karnal 132001, Haryana, India
Mobile No.:	91-9416032944 (Viney Goel)
Tel. No.:	91-184-2272648
Email :	vineygoel@rediffmail.com
Associates/Subsidiaries :	Padam Cotton Tarns Limited Shorya Trading Company Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Shares	Rs. 10 /- each	Rs. 70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,776,650	Equity Shares	Rs. 10 /- each	Rs. 57.766 millions

AS ON 28.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Shares	Rs. 10 /- each	Rs. 70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,849,150	Equity Shares	Rs. 10 /- each	Rs. 58.491 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		57.766	52.920	49.110
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		123.798	97.187	78.116
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		181.564	150.107	127.226
LOAN FUNDS
1] Secured Loans		329.039	301.809	248.360
2] Unsecured Loans		158.165	117.516	48.052
TOTAL BORROWING		487.204	419.325	296.412
DEFERRED TAX LIABILITIES		7.664	6.405	2.246
TOTAL		676.432	575.837	425.884
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		203.415	177.232	87.491
Capital work-in-progress		31.356	4.496	34.283
INVESTMENT		0.503	0.801	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	423.070	306.242	245.082
	Sundry Debtors	143.040	191.555	164.307
	Cash & Bank Balances	1.572	8.230	10.620
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	42.290	27.732	35.452
Total Current Assets		609.972	533.759	455.461
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	22.685	25.768	--
	Sundry Creditors	144.187	113.546	151.696
	Provisions	2.075	1.377	0.000
Total Current Liabilities		168.947	140.691	151.696
Net Current Assets		441.025	393.068	303.765
MISCELLANEOUS EXPENSES		0.133	0.240	0.345
TOTAL		676.432	575.837	425.884

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	965.599	944.091
		Other Income	0.054	0.514
		TOTAL (A)	965.653	944.605	751.447
Less	EXPENSES
		Material Consumed	647.923	668.776
		Other Manufacturing Expenses	184.409	151.512
		Payment to Employees	34.733	26.547
		Office selling and administration Expenses	32.400	27.191
		Loss on sale of Fixed assets	0.000	0.010
		Preliminary Expenses W/off	0.106	0.106
		Accretion and Depletion in stock	[12.364]	3.654
		TOTAL (B)	887.207	877.796	721.145
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		78.446	66.809	--
Less	FINANCIAL EXPENSES (D)		39.655	38.157	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		38.791	28.652	--
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.531	17.499	NA
	PROFIT BEFORE TAX (E-F) (G)		12.260	11.153	30.302
Less	TAX (I)		3.343	6.084	8.342
	PROFIT AFTER TAX (G-I) (J)		8.917	5.069	21.960
Less	APPROPRIATIONS
		Dividend	1.444	1.058	--
		Tax on Dividend	0.245	0.180	--
	BALANCE CARRIED TO THE B/S		7.228	3.831	NA
	Earnings Per Share (Rs.)		1.68	0.76	4.21

Particulars	31.03.2011
Sales Turnover [Approximately]	1140.000

The above information has been parted by Mr. Narendra [Accounts Manager]

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.92	0.54	2.92
Net Profit Margin (PBT/Sales)	(%)	1.27	1.18	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.51	1.57	5.58
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.24
Debt Equity Ratio (Total Liability/Networth)		3.61	3.73	3.52
Current Ratio (Current Asset/Current Liability)		3.61	3.79	3.00

LOCAL AGENCY FURTHER INFORMATION

Note : Registered office address of the company has been shifted from 21, Syndicate House, 3 Old Rohtak Road, New Delhi, India to the present address w.e.f 18.01.2011

WORKING RESULTS :

the company has achieved a turnover of Rs. 965.599 Millions as against a turn over of Rs. 944.091 Millions during the year ended on 31st March, 2010 and has earned a net profit of Rs. 8.917 Millions as against Rs. 5.069 Millions during the previous year. barring unforeseen circumstances, the directors are hopeful to achieve better results in the years to come.

TRADE REFRENCES:

• Shakti Forms
• Hindustan Forms

FORM 8

Corporate identity number of the company	U74999DL2003PTC121307
Name of the company	OSWAL PUMPS LIMITED
Address of the registered office or of the principal place of business in India of the company	C-5/2 A, Rana Partap Bagh, Opposite CC CPLONY, Delhi – 110007, Delhi, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10228121
Type of charge	Book debts Floating Charge Movable property (not being pledge)
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	20.05.2011
Amount secured by the charge	Rs.430.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest - Interest at the rate as may be communicated by the Bank from time to time. Terms of repayment - On demand Margin - As may be stipulated by the Bank from time to time. Extent and operation of the charge - Hypothecation by way of First Charge on Company's Stocks, Book Debts, Plant and Machinery and Vehicles etc, as a continuing security as mentioned in Column No.15 to secure below for the repayment of Rs. 430.000 millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property charged (Including location of the property)	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights The movable plant and machinery and vehicles, which may now or at any time hereafter belong to the Borrower or come to the
Date of instrument modifying the charge	13.04.2011
Particulars of the present modification	The Charge shall now stand increased from to Rs. 380.000 millions to Rs. 430.000 millions against the security of Stocks, Book Debts, Plant and Machinery and Vehicles of the Company.

Fixed Assets :

• Air Conditioner
• Air Cooling System
• Air Tel Dish
• Brand and Aq. Ch
• Building
• Building Leased
• Computers
• Computer Software
• Cycle and Rikchaw
• Draw and Sketches
• DVD
• Electric Appliances and Fittings
• Electrical Connection
• EPABX and Telephone
• Fax Machine
• Furniture and Fixtures
• Gas Connection
• Generator
• Moulding and Dies
• Office Equipments
• Patterns
• Plant and Machinery
• Rack
• TV
• Telephone
• Testing Equipments
• Tools and Dies
• Vehicles
• Water Cooler
• Water Tank
• Online UPS
• Trade Marks
• Photostat Machine
• Tractor Traully
• Welding Set

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] Records 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.44.45
UK Pound	1	Rs.71.52
Euro	1	Rs.64.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	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	-

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.