MIRA INFORM REPORT

Report Date :

01.03.2011

IDENTIFICATION DETAILS

Name :	DARLING PUMPS PRIVATE LIMITED
Registered Office :	14 B/2 Model Town L.B S Marg, Mulund, Mumbai -400080, Maharashtra.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.11.1982
Com. Reg. No.:	11-028753
CIN No.: [Company Identification No.]	U29120MH1982PTC028753
TAN No.: [Tax Deduction & Collection Account No.]	MUMD10069D
PAN No.: [Permanent Account No.]	AAACD1664L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of all kinds of Pumps and Motors.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 114500
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 concern 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. Ulhas Joshi
Designation :	Regional Manager
Contact No.:	91-9981992837
Date :	05.02.2011

LOCATIONS

Registered Office :	14 B/2 Model Town L.B S Marg, Mulund, Mumbai -400080, Maharashtra.
Tel. No.:	91-22-25604451
Fax No.:	91-22-25682690
Mobile No.:	91-9981992837 (Mr. Ulhas Joshi)
E-Mail :	spnaolekar@gmail.com darlingim@hathway.com dpplm@darlingpumps.in
Website :	http://www.darlingpumps.co.in http://www.darlingpumps.in http://www.darlingpumps.com
Location :	Owned
Factory and Head office :	36-F-Sector B, Sanwer Road, Indore-452003, Madhya Pradesh, India.
Tel. No.:	91-731-2720558/2721782
Fax No.:	91-731-2721136
E-Mail :	dpplin@darlingpumps.in
Sales Offices :	B/24, Runwal Commercial Complex, Opp. Govardhan Nagar, L.B.S.Marg, Mulund (West), Mumbai – 400080, India

DIRECTORS

AS ON 30.09.2010

Name :	Ms. Ashwini Avinash Ranade
Designation :	Director
Address :	14B/2, Model Town, Balrajeshwar Road, Mulund (West), Mumbai -400080, Maharashtra, India.
Date of Birth/Age :	25.03.1943
Date of Appointment :	02.09.1994
Qualification :	Graduate
Din :	00140218
Name :	Mr. Sandeep Prakash Naolekar
Designation :	Director
Address :	Gharonda, 54DF, Schene No. 74-C, Vijay Nagar, Indore – 452010, Madhya Pradesh.
Date of Birth/Age :	29.03.1971
Qualification :	Graduate
Date of Appointment :	31.03.1998
Din :	00140117
Name :	Mrs. Deepa Sandeep Naolekar
Designation :	Director
Address :	Gharonda, 54DF, Schene No. 74-C, Vijay Nagar, Indore – 452010, Madhya Pradesh.
Date of Birth/Age :	09.09.1974
Date of Appointment :	01.03.2002
Din :	00140248

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Ms. Ashwini Avinash Ranade	54860
Mr. Sandeep Prakash Naolekar	7101
Mrs. Deepa Sandeep Naolekar	35631
Mr. Jayant G. Buty	10
Total	97602

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of all kinds of Pumps and Motors.
Products :	Wet Pit Sewage Pumps Dewatering Pump Water Pump Dredger Pumps Slurry Pump Low Head High Discharge Pumps Pumps and vacuum Equipment Non Clog Pumps Multi Stage Mono Block Pumps Sump Pumps Cantilever Pumps
Exports :
Products :	All Kinds of Pumps and Motors
Countries :	· Sri Lanka · Nepal · Bangladesh · Pakistan · Canada

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

100 (in office – 30 and in factory - 70)

Bankers :

Bank of India, Laxmi Nagar Branch, 33/D, Laxmi Nagar, Kila Maidan, Indore – 452002, Madhya Pradesh, India

Facilities :

Secured Loan	As On 31.03.2009 (Rs.in million)	As On 31.03.2009 (Rs.in million)
Secured Loan – Bank of India FDR Loan	0.900	0.000
Unsecured Loan :
From Directors
Smt. Ashwini A Ranade	2.034	2.090
Smt. Deeps S. Naolekar	0.343	0.343
Total	2.377	2.433

Banking Relations :	--
Auditors :
Name :	Mandovra and Associates Chartered Accountant
Address :	2, White Church Colony, Opposite Aaykar Bhavan, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-2701600 / 603

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Share	Rs.10/- Each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
97,602	Equity Share	Rs.10/- Each	Rs. 0.976 Million

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		0.976	0.976	0.976
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.669	19.348	13.009
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.645	20.324	13.985
LOAN FUNDS
1] Secured Loans		0.900	0.000	0.463
2] Unsecured Loans		2.377	2.433	2.396
TOTAL BORROWING		3.277	2.433	2.859
DEFERRED TAX LIABILITIES		0.466	0.344	0.383
TOTAL		32.388	23.101	17.227
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.645	9.343	9.171
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.739	3.215	4.295
	Sundry Debtors	14.774	12.749	6.821
	Cash & Bank Balances	13.596	9.645	6.374
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.398	4.059	4.095
Total Current Assets		35.507	29.668	21.585
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.867	8.354	8.785
	Other Current Liabilities	5.851	6.663	4.744
	Provisions	0.046	0.893	0.000
Total Current Liabilities		15.764	15.910	13.529
Net Current Assets		19.743	13.758	8.056
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		32.388	23.101	17.227

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	91.418	84.960	68.495
		Other Income	0.777	0.618	0.342
		Profit on Sale of Fixed Assets	0.000	0.000	1.646
		TOTAL (A)	92.195	85.578	70.483
Less	EXPENSES
		Material Consumed / Purchase	34.758	32.790	28.601
		Other manufacturing Expenses	2.859	2.671	2.444
		Expenditure On Employees	9.749	7.896	6.126
		Directors Remuneration	4.151	2.966	2.793
		Other Expenses	13.761	15.885	14.120
		Selling Expenses	11.996	9.903	6.819
		Increase in Finished Stock	(0.510)	0.577	(0.372)
		TOTAL (B)	76.764	72.688	60.531
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.431	12.890	9.952
Less	FINANCIAL EXPENSES (D)		0.296	0.372	0.389
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.135	12.518	9.563
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.127	1.200	1.124
	PROFIT BEFORE TAX (E-F) (G)		14.008	11.318	8.439
Less	TAX (I)		4.831	4.123	2.970
	PROFIT AFTER TAX (G-I) (J)		9.177	7.195	5.469
Less	Dividend @Rs.75%		0.732	0.732	0.732
Less	Corporate Dividend Tax on Above		0.124	0.124	0.124
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19.015	12.676	8.063
	BALANCE CARRIED TO THE B/S		27.336	19.015	12.676
	Earnings Per Share (Rs.)		94.02	64.95	--

Expected Sales ( 2010-2011 ) : Rs.150.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	9.95	8.41	7.76
Net Profit Margin (PBT/Sales)	(%)	15.32	13.32	7.51
Return on Total Assets (PBT/Total Assets}	(%)	29.09	29.01	16.73
Return on Investment (ROI) (PBT/Networth)		0.49	0.56	0.37
Debt Equity Ratio (Total Liability/Networth)		0.66	0.90	1.17
Current Ratio (Current Asset/Current Liability)		2.25	1.86	1.60

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCE :

• Delhi Jal Board
• Larsen and Tourbo
• BHEL

PERFORMANCE REVIEW :

The turnover and other income during the year have been increased at Rs.92.195 million as compared to preceding year Rs.85.578 million. The company has earned net profit of Rs. 9.304 million in comparison of the profit of Rs.7.195 million in preceding year.

BANKERS CHARGES REPORT AS PER REGISTRY

Name of the company	Darling Pumps Private Limited
Presented By	Darling Pumps Private Limited
1) Date and description of instrument creating the change	Hypothecation cum Loan Agreement dated 18.04.2005.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.800 Million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of tangible movable assets such as Automatic Computerized Pump testing system and its accessories as specified in the Hypothecation cum Loan Agreement dated 18.04.2005
4) Gist of the terms and conditions and extent and operation of the charge.	Loan Payable in 60 installments each of Rs. 0.013 Millions Plus Interest first installment on 30.11.2005 and last installment on 31.10.2010.
5) Name and Address and description of the person entitled to the charge.	Bank of India, Laxmi Nagar Branch, 33/D, Laxmi Nagar, Kila Maidan, Indore – 452002.

FIXED ASSETS:

• Land
• Building
• Building (CWIP) (New Plot)
• Testing Tank
• Plant and Machinery
• Pattern and Dies
• Motor Car
• Cycle
• Delivery Van
• Computer
• Office Equipment
• Typewriter
• Furniture and Fixtures

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.45.18
UK Pound	1	Rs.72.78
Euro	1	Rs.62.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	NO
--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		46

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.