MIRA INFORM REPORT

Report Date :

08.02.2012

Tel. No.:	91-2622-222399
Fax No.:	91-2622-222799

IDENTIFICATION DETAILS

Name :	WATECH R O SYSTEM (INDIA) PRIVATE LIMITED
Registered Office :	N. H. No.6, Opposite Fishnet Plant, G.I.D.C., Bardoli, Surat – 394601, Gujarat
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	21.04.2006
Com. Reg. No.:	04-48170
Capital Investment / Paid-up Capital :	Rs.3.500 Millions
CIN No.: [Company Identification No.]	U15543GJ2006PTC048170
TAN No.: [Tax Deduction & Collection Account No.]	BRDQ00127B
PAN No.: [Permanent Account No.]	AAACW6362L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Water Purifier
No. of Employees :	60 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 29000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financial of the company with the government department after the 2009. However, trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Ms. Deepti
Designation :	Marketing Manager
Contact No.:	91-2622-222399
Date :	01.02.2012

LOCATIONS

Registered Office / Head Office / Factory 1 :	N. H. No.6, Opposite Fishnet Plant, G.I.D.C., Bardoli, Surat – 394601, Gujarat, India
Tel. No.:	91-2622-222399
Fax No.:	91-2622-222799
E-Mail :	helpline@watechro.com watechro@watehro.com naigamca@gmail.com info@watechro.com
Website :	http://www.watechro.com
Location :	Owned
Factory 2:	Block No.536, Santej Road, At Rakanpur, Gandhi Nagar - 382721, Gujarat, India
Tel No.:	91-2764-286060
Fax No.:	91-2676-286080
E mail:	info@watechro.com
Location :	Owned
Factory 3 :	12 to 17, Harvilla Complex, Near Vishakarma Temple, Gota Road, Chandlodia, Ahmedabad, Gujarat, India
Sales Office :	Located at · Gujarat · Rajasthan · Madhya Pradesh · Delhi · Haryana · Tamil Nadu · Andhra Pradesh

DIRECTORS

As on 30.09.2009

Name :	Mr. Om Prakash Shah
Designation :	Managing Director
Address :	Rajender Nagar, Nagin Desai NI Chawl, Bardoli Surat – 394602, Gujarat, India
Date of Birth/Age :	27.05.1963
Qualification :	MBA
Date of Appointment :	21.04.2006
Name :	Mr. Jiteshkumar Kantilal Shah
Designation :	Director
Address :	Arya Niwas, Station Road, At. Po. Anaval, Taluka Mahua, Surat-396510, Gujarat, India
Date of Birth/Age :	08.11.1967
Date of Appointment :	21.04.2006
Name :	Mrs. Roopaben Shah
Designation :	Director
Address :	Arya Niwas, Station Road, At. Po. Anaval, Taluka Mahua, Surat-396510, Gujarat, India
Date of Birth/Age :	01.01.1972
Date of Appointment :	21.04.2006
Name :	Mrs. Premlata Omprakash Shah
Designation :	Director
Address :	Rajender Nagar, Nagin Desai NI Chawl, Bardoli Surat – 394601, Gujarat, India
Date of Birth/Age :	13.03.1966
Date of Appointment :	21.04.2006

KEY EXECUTIVES

Name :	Ms. Deepti
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2009

Names of Shareholders	No. of Shares
Om Prakash Shah	122500
Prem Lata Shah	82500
Jiteshkumar Shah	132500
Rupaben Shah	12500
Total	350000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2009

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Water Purifier
Products :	Industrial RO System Domestic RO System Commercial RO System Commercial components Domestic Components
Exports :
Products :	Water Purifier
Countries :	Germany USA Iraq Dubai
Imports :
Products :	Raw Material
Countries :	USA Taiwan
Terms :
Selling:	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Uniled Phosphorus Limited

Customers :

Wholesalers, Retailers

· C.R.I. Pumps Private Limited

No. of Employees :

60 (Approximately) (In Office + In Factory)

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West) Branch -400013, Maharashtra, India

· Punjab National Bank, Lower Parel (West), Maharashtra, India

Facilities:

Secured Loans	31.03.2009 Rs In Millions	31.03.2008 Rs. In Millions
Secured Loans	15.438	0.989
Total	15.438	0.989
Unsecured Loans	31.03.2009 Rs In Millions	31.03.2008 Rs. In Millions
Unsecured loans and advances	7.222	11.913
Total	7.222	11.913

Banking Relations :	--
Auditors :
Name :	Naigam H Sha and Associates Chartered Accountants
Address :	404, Himadri Complex, Ashram Road, Ahmedabad-380009, Gujarat, India

CAPITAL STRUCTURE

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/- each	Rs. 3.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/- each	Rs. 3.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		3.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.823	2.322	0.933
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.323	2.822	1.433
LOAN FUNDS
1] Secured Loans		15.438	0.989	0.705
2] Unsecured Loans		7.222	11.913	12.187
TOTAL BORROWING		22.660	12.902	12.892
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		29.983	15.724	14.325
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.316	6.706	4.365
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	17.011	5.140	4.629
	Sundry Debtors	12.979	13.729	7.974
	Cash & Bank Balances	0.535	1.526	0.101
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.959	1.340	1.436
Total Current Assets		33.484	21.735	14.140
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.215	11.999	3.437
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.676	0.741	0.773
Total Current Liabilities		11.891	12.740	4.210
Net Current Assets		21.593	8.995	9.930
MISCELLANEOUS EXPENSES		0.074	0.023	0.030
TOTAL		29.983	15.724	14.325

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Income	61.281	43.509
		Other Income	0.323	0.147
		TOTAL (A)	61.604	43.656
Less	EXPENSES
		Purchases	45.542	19.599
		Direct Expenses	4.941	5.708
		Administrative and Other Expenses	18.759	15.660
		Increase/ Decrease in Stock-in-trade	[11.871]	[0.511]
		TOTAL (B)	57.371	40.456
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.233	3.200
Less	FINANCIAL EXPENSES (D)		0.557	0.150
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.676	3.050
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.282	0.954
	PROFIT BEFORE TAX (E-F) (G)		2.394	2.096
Less	TAX (I)		0.894	0.707
	PROFIT AFTER TAX (G-I) (J)		1.500	1.389
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.322	0.933
	BALANCE CARRIED TO THE B/S		3.822	2.322
	Earnings Per Share (Rs.)		4.29	--

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	85.000	80.000

Expected Sales (2011-2012) : Rs.90.000 Millions

The above information has been parted by Ms. Deepti.

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	2.43	3.18	NA
Net Profit Margin (PBT/Sales)	(%)	3.91	4.82	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.73	7.37	NA
Return on Investment (ROI) (PBT/Networth)		0.33	0.74	NA
Debt Equity Ratio (Total Liability/Networth)		4.72	9.09	11.93
Current Ratio (Current Asset/Current Liability)		2.82	1.71	3.36

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Trade References:

· Uniled Phosphorus Limited

· C.R.I. Pumps Private Limited

Fixed Assets:

· Computer and Printer

· Electric Fittings

· Furniture and Fixture

· Office Equipments

· Plant and Machinery

· Vehicles

· Gold Coin Purchase

· Cars

· Land and Building

· Plant and Machinery Baddi

· Furniture

· Computer Jaipur

· Furniture and Fitting Jaipur

Website Details:

Profile:

Subject is the fastest and largest emerging integrated water solution provider, with the state of the art multi locational manufacturing facilities backed by dedicated team of engineering professionals having the core competency in designing, manufacturing, installation and services of RO-Systems. They also dealing in OEM Base Domestic RO, Commercial RO, Industrial RO, in company brand and also dealing in OEM components. Companies have the national presence through its branch offices and dealer network. Through which it assures the customer of Time Bound and Zero defect Service.

Company is member of Water Quality Association-USA and Indian Water Works Association. They are also associated with USA and Taiwan based water treatment companies for procurement of components and design of commercial RO & Domestic RO systems.

Company is first company in the India to implement stringent ISO 9001:2000 quality parameters for Designing, Manufacturing, Marketing and After Sales Service of TUV Rhineland. Company is promoted by Mr. Om Prakash Shah (M.D) who has the Two decade of experience in Water Treatment/purification System. Their M.D has also got the Paul Harris Fellow Award from Rotary International and winner of the various national awards and recognized like Rashtriya Nirman Ratan Award by the Indian Organization for Business Research and Development and Udyog Pratibha Ratan Award by the Global Society for Health and Education Growth. The M.D is renowned expert and technocrat in water treatment/purification industry.

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.48.12
UK Pound	1	Rs.77.31
Euro	1	Rs.64.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.