MIRA INFORM REPORT

Report Date :

12.03.2011

IDENTIFICATION DETAILS

Name :	FRISTAM PUMPS (INDIA) PRIVATE LIMITED
Registered Office :	J-340 MIDC Industrial Area Bhosari, Pune – 411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.11.1986
Com. Reg. No.:	25-041599
CIN No.: [Company Identification No.]	U29120MH1986PTC041599
TAN No.: [Tax Deduction & Collection Account No.]	PNEF00633D
PAN No.: [Permanent Account No.]	AAACF4158R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Stainless Steel Hygienic Pumps

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 24000
Status :	Satisfactory
Payment Behaviour :	Slow but 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 slow but correct. The company can be considered for small to mediocre 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

LOCATIONS

Registered Office :	J-340 MIDC Industrial Area Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-65334954/20205506
Fax No.:	91-20-27122418
E-Mail :	fristamp@rediffmail.com response@fristamindia.net fristamp@vsnl.net fristamp@bsnl.in
Website :	www.firstamindia.net

DIRECTORS

As On 29.08.2008

Name :	Mr. Gajanan Chidambar Hegde
Designation :	Managing Director
Address :	Chindavat R No 4, Sai Garden Pimple Soudagar, Chinchwad, Pune – 411027, Maharashtra, India
Date of Birth/Age :	28.09.1948
Date of Appointment :	18.11.1986
DIN No. :	00195154
Name :	Mr. Swapna Sadanand Hedge
Designation :	Director
Address :	Chetna 14 Navrajasthan Society Senapati Bapt Road, Pune – 411016, Maharashtra, India
Date of Birth/Age :	20.08.1980
Date of Appointment :	30.04.1999
DIN No. :	00982265
Name :	Wolfgang Stamp
Designation :	Director
Address :	Elube Strasse 12 214 Winsen, Loheot, Lassroenne Germany
Date of Birth/Age :	24.12.1957
Date of Appointment :	03.05.1995
Name :	Joachim Friedsch
Designation :	Director
Address :	Eli Sabeth Thomannweg 10 21029, Hamburg Germany
Date of Appointment :	30.04.1999
Name :	Ms. Chetna Sadanand Hegde
Designation :	Additional Director
Address :	Plot No 14, Naurajasthan Society, Senapati Bapat Marg, Pune – 411016, Maharashtra, India
Date of Birth/Age :	24.05.1973
Date of Appointment :	29.12.2010
DIN No. :	03370204

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 29.08.2008

Names of Shareholders	No. of Shares
Hedge Sadanand Ganapati	1001
Hedge Bharati Sadanand	378
Hedge Chetna Sadanand	9490
Stamp Wolfgang	1950
Nayar Ashwin	824
Hedge Gajanan Chidambar	1221
Fristam Pumpen F Stamp (Gmbh and Company)	6549
Total	21413

As On 02.09.2008

List of Allottees	No. of Shares
Hedge Sadanand	379

As On 29.08.2008

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Stainless Steel Hygienic Pumps
Products :	Centrifugal Pumps Self Priming Centrifugal Pumps Multistage Pumps Rotary Piston Pumps Rotary Lobe Pumps

GENERAL INFORMATION

Bankers :

• Canara Bank – Camp, M.G. Road, Pune – 411001, Maharashtra, India
• HDFC

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Canara Bank : Cash Credit (Hypothecation of stock in trade and collateral security of book debts)	0.417	0.803
Canara Bank : Term Loan (List) (Hypothecation of Computerised system for online testing machine)	0.236	0.442
Total	0.653	1.245

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
HDFC : Car Loan (List) (Hypothecation of car)	3.013	1.017
Total	3.013	1.017

Banking Relations :	--
Auditors :
Name :	Nerlikar and Associates Chartered Accountant
Address :	Office No. 11, Sukhwani Fortunes, Court Road, Pimpri, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-27470461/27464110
E-Mail :	info@nerlikarassociates.com
Website :	www.nerlikarassociates.com
Pan No.:	AAAFN8614R

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21792	Equity Shares	Rs. 100/- each	Rs. 2.179 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		2.179	2.179	2.141
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.967	2.584	3.586
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.146	4.763	5.727
LOAN FUNDS
1] Secured Loans		0.653	1.245	1.732
2] Unsecured Loans		3.013	1.017	1.533
TOTAL BORROWING		3.666	2.262	3.265
DEFERRED TAX LIABILITIES		0.148	1.002	0.778
TOTAL		9.960	8.027	9.770
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.193	5.147	6.068
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	7.985	7.005	6.470
	Sundry Debtors	11.102	14.678	13.959
	Cash & Bank Balances	2.610	2.836	2.025
	Other Current Assets	0.550	1.242	0.500
	Loans & Advances	0.392	0.654	0.638
Total Current Assets		22.639	26.415	23.592
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		21.004	18.199
	Other Current Liabilities	19.565	1.462	1.323
	Provisions	0.318	1.086	0.390
Total Current Liabilities		19.883	23.552	19.912
Net Current Assets		2.756	2.863	3.680
MISCELLANEOUS EXPENSES		0.011	0.017	0.022
TOTAL		9.960	8.027	9.770

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income		37.451	30.375
		Other Income		0.202	0.143
		TOTAL (A)	30.363	37.653	30.518
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	21.176	35.061	28.070
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			2.592	2.448
Less	FINANCIAL EXPENSES (D)			0.483	0.453
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	2.109	1.995
Less/ Add	DEPRECIATION/ AMORTISATION (F)			1.091	1.325
	PROFIT BEFORE TAX (E-F) (G)		0.825	1.018	0.670
Less	TAX (I)		0.318	0.450	0.387
	PROFIT AFTER TAX (G-I) (J)		0.507	0.568	0.283
	IMPORTS
		Raw Materials	0.886	0.083	NA
	TOTAL IMPORTS		0.886	0.083	NA
	Earnings Per Share (Rs.)		23.27	26.06	13.22

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.67	1.51	0.93
Net Profit Margin (PBT/Sales)	(%)	NA	2.72	2.21
Return on Total Assets (PBT/Total Assets}	(%)	2.77	3.23	2.26
Return on Investment (ROI) (PBT/Networth)		0.13	0.21	0.12
Debt Equity Ratio (Total Liability/Networth)		3.83	5.42	4.05
Current Ratio (Current Asset/Current Liability)		1.14	1.12	1.18

LOCAL AGENCY FURTHER INFORMATION

OPERATING REVIEW

The Directors are confident that the Company will continue to maintain its good quality of product and Directors are optimistic for a bright future of the Company.

AS PER WEBSITE DETAILS

PROFILE:

Subject began its operation of manufacturing stainless steel hygienic pumps in 1987 with a well tooled plant in the Bhosari Industrial Area, Pune (Maharashtra), India. The company was founded as an Indo-German joint venture.

The company is very well managed by technocrats having more than 35 years of industrial experience.

By virtue of its exceptional quality, the company was able to develop a large clientele of multinational companies and industrial houses.

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.45.21
UK Pound	1	Rs.72.55
Euro	1	Rs.63.43

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.