MIRA INFORM REPORT

Report Date :

13.02.2012

IDENTIFICATION DETAILS

Name :	INNOVATIVE AQUA SYSTEMS PRIVATE LIMITED
Registered Office :	H No. 4-4-70 /46, Opposite Vijanthi Theatre, Koundinya Nagar, Nacharam, Hyderabad- 500076, Andhra Pradesh , India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.06.2008
Com. Reg. No.:	01-059579
Capital Investment/ Paid-up Capital:	Rs. 0.500 million
CIN No.: [Company Identification No.]	U28931AP2008PTC059579
Legal Form :	Private Limited Liability Company
Line of Business :	The company provide innovative solutions for a stream of pure and safe water
No. of Employees:	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 5000
Status :	Recently Commenced Business
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Though the company was incorporated in the year 2008, it has started its business activities in the year 2010-2011. The company has achieved a sizeable turnover in its first year of operation. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 :	Mr. Balaraju
Designation :	Director
Contact No.:	91-9885655133
Date :	10.02.2012

LOCATIONS

Registered Office :	House No- 4-4-70 /46, Opposite Vijanthi Theatre, Koundinya Nagar, Nacharam, Hyderabad- 500076, Andhra Pradesh , India
Tel. No.:	91-40-27177490
Mobile No.:	91-9885655133 / 9052600032 (Mr.B. Balaraju) , 91-9848655133 (Ms. B. Sunita)
Fax No.:	91-40-27177490
E-Mail :	Goudoa@gmail.com mtrca@rediffmail.com

DIRECTORS

(As on 31.03.2011)

Name :

Mr. Babburi Balaraju Goud

Designation :

Director

Address :

House No- 4-4-70 /46, Koundinya Nagar, Nacharam, Hyderabad- 500076, Andhra Pradesh , India

Date of Birth/Age :

01.03.1979

Date of Appointment :

09.06.2008

DIN No :

02199687

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28931AP2008PTC059579	INNOVATIVE AQUA SYSTEMS PRIVATE LIMITED	Director	09-06-08	09-06-08	-	Active	NO

Name :

Mrs. Babburi Sunitha

Designation :

Additional Director

Address :

4-4-70/46, Uppal Pratibha High School, Nacharam, Uppal Ranga Reddy District, Andhra Pradesh- 500039, India

Date of Birth/Age :

13.05.1982

Date of Appointment :

01.04.2010

DIN No :

03029499

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28931AP2008PTC059579	INNOVATIVE AQUA SYSTEMS PRIVATE LIMITED	Additional director	01-04-10	01-04-10	-	Active	NO

Name :

Motukuri Krishna Raghavendra Vara Prasad

Designation :

Director

Address :

H No. 7-84, Ram Temple, Uppal, Hyderabad-500039, Andhra Pradesh, India

Date of Birth/Age :

02.06.1982

Date of Appointment :

08.06.2008

DIN No :

02199683

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28931AP2008PTC059579	INNOVATIVE AQUA SYSTEMS PRIVATE LIMITED	Director	09-06-08	09-06-08	31-03-10	Active	NO

KEY EXECUTIVES

Name :	Ms. Sunita
Designation :	Manager
Contact No. :	91-9848655133

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Mr. Babburi Balaraju Goud	5000
Mrs. Babburi Sunitha	5000
Total	10000

(AS ON 30.09.2011)

Category	Percentage
Directors or relatives of directors	100.000
Total	100.000

BUSINESS DETAILS

Line of Business :	The company provide innovative solutions for a stream of pure and safe water
Products :	Water treatment plant Reverse Osmosis Plants Mineral water plants Drinking Water plants Dm plants Water Treatment Spares
Services Offered :	Water Treatment Installation of Water Treatment Plants Mineral Water and Package Drinking Water Projects.
Exports :
Countries :	· Sri Lanka · African Countries
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

No. of Employees :	35 (Approximately)
Bankers :	ICICI Bank, Nacharam Branch

Banking Relations :	--
Auditors :
Name :	Thiru Palu Reddy M Chartered Accountant
Address :	7-1-414 /25, F No 405, Kalyani Classics, Srinivasa Colony East, S R Nagar, Hyderabad-500038, Andhra Pradesh, India
PAN No.:	ACIPM57114G

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Share	Rs.10/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Share	Rs.10/- each	Rs.0.100 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.900	0.000	0.000
3] Reserves & Surplus		0.218	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.218	0.100	0.100
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1.218	0.100	0.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.339	0.000	0.000
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	9.352	0.000	0.000
	Sundry Debtors	0.229	0.000	0.000
	Cash & Bank Balances	0.268	0.003	0.006
	Other Current Assets	0.198	0.048	0.000
	Loans & Advances	0.000	0.000	0.048
Total Current Assets		10.047	0.051	0.054
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	8.821	0.000	0.000
	Other Current Liabilities	0.289	0.003	0.003
	Provisions	0.100	0.000	0.000
Total Current Liabilities		9.210	0.003	0.003
Net Current Assets		0.837	0.048	0.051
MISCELLANEOUS EXPENSES		0.042	0.052	0.049
TOTAL		1.218	0.100	0.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	33.452
		Other Income	0.681
		TOTAL	34.133
Less	EXPENSES
		Cost of Material sold	31.739
		Operating Expenses	1.443
		Administration and Marketing Expenses	0.608
		Preliminary and pre-operative expenses	0.010
		TOTAL	33.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)		0.333
Less/ Add	DEPRECIATION/ AMORTISATION		0.015
	PROFIT BEFORE TAX		0.318
Less	TAX		0.100
	PROFIT AFTER TAX		0.218
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000
	BALANCE CARRIED TO THE B/S		0.218
	Earnings Per Share (Rs.)		21.8

Expected Sales (2011-2012) : Rs50.000 millions.

The above information has been parted by Mr. Balaraju

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.032009
PAT / Total Income	(%)	0.64	---	---
Net Profit Margin (PBT/Sales)	(%)	0.95	---	---
Return on Total Assets (PBT/Total Assets}	(%)	3.06	---	---
Return on Investment (ROI) (PBT/Networth)		0.26	---	---
Debt Equity Ratio (Total Liability/Networth)		7.56	0.03	0.03
Current Ratio (Current Asset/Current Liability)		1.09	17.00	18.00

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	-
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last one year	Yes
Profitability for last three years	-
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	-
Major Suppliers	-
Major Customers	-
Payment Terms	Yes
Export / Import Details [If Applicable]	-
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	-
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	-
Last accounts filed at ROC	-
Major Shareholders, if applicable	-

Operational Results :

The Company has started business during the year and achieved turnover of Rs.3.345 Millions and the Net Profit Before Tax of Rs. 0.318 Million.

The Board of Directors is of the view to maintain same trend in the following year with some Improvement both in terms of turnover and profitability.

Fixed Assets :

· Furniture

· Computer System

· Vehicles

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 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.49.35
UK Pound	1	Rs.77.84
Euro	1	Rs.65.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.