MIRA INFORM REPORT

Report Date :

23.07.2013

IDENTIFICATION DETAILS

Name :	AQUATECH SYSTEMS (ASIA) PRIVATE LIMITED
Registered Office :	Survey No. 244/2, Rajiv Gandhi Infotech Park, Hinjewadi, Pune – 411057, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.10.1986
Com. Reg. No.:	11-013151
Capital Investment / Paid-up Capital :	Rs.14.815 Millions
CIN No.: [Company Identification No.]	U29197PN1986PTC013151
PAN No.: [Permanent Account No.]	AABCA1850C
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Exporter of Waste Water Treatment Plant, Water and Waste Water System.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The financial for the year 2012 is not available. As per the financial of 2011, the company performance seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade and condition.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB+ (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	February 11, 2013

Rating Agency Name	CRISIL
Rating	A2 (Short Term Rating)
Rating Explanation	Strong degree of safety and low credit risk.
Date	February 11, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Jaya
Designation :	Office Executive
Contact No.:	91-20-66547000
Date :	17.07.2013

LOCATIONS

Registered Office :	Survey No. 244/2, Rajiv Gandhi Infotech Park, Hinjewadi, Pune – 411057, Maharashtra, India
Tel. No.:	91-20-66547280 / 66547000/ 01
Fax No.:	91-20-66547070
E-Mail :	spatro@aquatechasia.com
Website :	www.aquatechasia.com
Location :	Owned

DIRECTORS

As on: 28.09.2012

Name :

Mr. Ramesh Chandra Jaitly

Designation :

Director

Address :

Flat No. 4, Building D, Gaura Heritage, Aundh, Pune – 411045, Maharashtra, India

Date of Birth/Age :

30.04.1936

Date of Appointment :

14.09.2010

DIN No.:

00909244

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29197PN1986PTC013151	AQUATECH SYSTEMS (ASIA) PRIVATE LIMITED	Director	14/09/2010	11/10/2001	-	Active	NO
2	U41000MH1970PTC014995	QUA WATER TECHNOLOGIES PRIVATE LIMITED	Director	13/09/2010	17/07/2009	-	Active	NO

Name :

Mr. Devesh Prem Sharma

Designation :

Director

Address :

55, Appaloosa Lane, Washington, PA USA – 15301

Date of Birth/Age :

27.01.1977

Date of Appointment :

27.09.1995

DIN No.:

01877997

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29197PN1986PTC013151	AQUATECH SYSTEMS (ASIA) PRIVATE LIMITED	Director	27/09/1995	27/09/1995	-	Active	NO
2	U41000MH1970PTC014995	QUA WATER TECHNOLOGIES PRIVATE LIMITED	Director	13/09/2010	17/07/2009	-	Active	NO
3	U24231PN2001PTC015940	WEX TECHNOLOGIES PRIVATE LIMITED	Director	05/05/2011	05/05/2011	-	Active	NO
4	U41000PN2013PTC146678	AQUATECH WATER SOLUTIONS PRIVATE LIMITED	Director	21/03/2013	21/03/2013	-	Active	NO
5	U74900PN2013PTC146708	AQUATECH ENVIRONMENTAL SERVICES PRIVATE LIMITED	Director	22/03/2013	22/03/2013	-	Active	NO

Name :

Mr. Chandra Prabha Sharma

Designation :

Director

Address :

55, Appaloosa Lane, Washington, PA USA – 15301

Date of Birth/Age :

02.06.1943

Date of Appointment :

01.09.1993

DIN No.:

02066117

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29197PN1986PTC013151	AQUATECH SYSTEMS (ASIA) PRIVATE LIMITED	Director	01/09/1993	01/09/1993	-	Active	NO
2	U41000MH1970PTC014995	QUA WATER TECHNOLOGIES PRIVATE LIMITED	Director	13/09/2010	17/07/2009	-	Active	NO

Name :

Mr. Venkatesh Nath Sharma

Designation :

Director

Address :

55, Appaloosa Lane, Washington, PA USA – 15301

Date of Birth/Age :

01.09.1966

Date of Appointment :

01.09.1993

DIN No.:

02744556

KEY EXECUTIVES

Name :	Ms. Jaya
Designation :	Office Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Equity Shareholders	No. of Shares
Aquatech International Corporation, USA	1244613
Ramesh Chandra Sharma	1
Jatindranath R Sharma	1
Total	1244615

Names of Preferences Shareholders	No. of Shares
Aquatech International Corporation, USA	354570
Total	354570

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Importer and Exporter of Waste Water Treatment Plant, Water and Waste Water System.

Products :

Product Description	ITC Code
Water Treatment Plant	841989.83
Waste Water Treatment Systems Plant	841989.04

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

25 (Approximately)

Bankers :

State Bank of India, Industrial Finance Branch, Tara Chambers, 2^nd Floor, Near Mariaai Police Chowky, Pune – Mumbai Highway Road, Wakdewadi, Pune – 411003, Maharashtra, India

Tel. No.: 91-20-25618121

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks	89.951	96.363
Working capital loans banks	80.372	0.000
Loans taken for vehicles	0.511	1.373
Total	170.834	97.736

Banking Relations :	--
Auditors :
Name :	Ashok Kumar Prabhashankar and Company Chartered Accountants
Address :	SF – 7, Business Point, 137, Brigade Road, Bangalore – 560025, Karnataka, India
PAN No.:	AAKFA0917E
Holding Company :	Aquatech International Corporation, USA
Subsidiaries :	Aquatech Eastern FZE, Sharjah, United Arab Emirates Aquatech (HK) Water Treatment Limited, Hong Kong Aquatech Guangzhou Water Treatment Comapny, China Qua Water Technologies Private Limited, India CIN No.: U41000MH1970PTC014995

CAPITAL STRUCTURE

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1645430	Equity Shares	Rs.10/- each	Rs.16.454 Millions
354570	Preference Shares	Rs.10/- each	Rs.3.546 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1244615	Equity Shares	Rs.10/- each	Rs. 12.446 Millions
354570	Preference Shares	Rs.10/- each	Rs. 3.546 Millions
	Total		Rs.15.992 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1645430	Equity Shares	Rs.10/- each	Rs.16.454 Millions
354570	Preference Shares	Rs.10/- each	Rs.3.546 Millions
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1126892	Equity Shares	Rs.10/- each	Rs.11.269 Millions
354570	Preference Shares	Rs.10/- each	Rs.3.546 Millions
	Total		Rs.14.815 Millions

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		14.815	14.254	13.954
2] Share Application Money		24.585	27.174	3.910
3] Reserves & Surplus		290.011	196.032	136.891
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		329.411	237.460	154.755
LOAN FUNDS
1] Secured Loans		170.834	97.736	97.464
2] Unsecured Loans		16.114	67.599	103.473
TOTAL BORROWING		186.948	165.335	200.937
DEFERRED TAX LIABILITIES		10.177	0.000	0.000
TOTAL		526.536	402.795	355.692
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		275.158	144.509	167.250
Capital work-in-progress		0.000	120.115	0.000
INVESTMENT		208.893	46.476	6.550
DEFERREX TAX ASSETS		0.000	3.208	1.197
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	283.722	16.348	130.088
	Sundry Debtors	265.970	506.218	309.625
	Cash & Bank Balances	107.838	117.368	47.508
	Other Current Assets	22.641	29.995	0.000
	Loans & Advances	179.863	98.308	104.176
Total Current Assets		860.034	768.237	591.397
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	198.276	256.520	146.866
	Other Current Liabilities	514.633	337.239	204.607
	Provisions	104.640	85.991	59.229
Total Current Liabilities		817.549	679.750	410.702
Net Current Assets		42.485	88.487	180.695
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		526.536	402.795	355.692

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	1122.486	1105.854	1292.830
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	988.561	991.417	1191.848
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		133.925	114.437	100.982
Less/ Add	DEPRECIATION/ AMORTISATION		35.608	30.087	28.338
	PROFIT BEFORE TAX		98.317	84.350	72.644
Less	TAX		30.950	28.819	26.760
	PROFIT AFTER TAX		67.367	55.531	45.884
Less	Fringe Benefit Tax		0.000	0.000	1.423
Add	Deferred Tax		0.000	0.000	1.526
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		170.975	115.444	69.457
	BALANCE CARRIED TO THE B/S		238.342	170.975	115.444
	EARNINGS IN FOREIGN CURRENCY		345.251	500.937	1022.841
	Earnings Per Share (Rs.)		54.12	52.00	45.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.00	5.02	3.55
Return on Total Assets (PBT/Total Assets}	(%)	8.67	9.24	9.58
Return on Investment (ROI) (PBT/Networth)		0.30	0.36	0.47
Debt Equity Ratio (Total Debt/Networth)		0.57	0.70	1.30
Current Ratio (Current Asset/Current Liability)		1.05	1.13	1.43

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note:

The Registered Office of the company has been shifted from Plot No. 3. Survey No. 250/5, Baner Park, D P Road, Aundh, Pune – 411007, Maharashtra, India to the present address w.e.f. 01.09.2008

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Other Instruments	6.981	6.981
Loans subsidiary	9.044	60.486
Loans directors	0.089	0.132
Total	16.114	67.599

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U29197PN1986PTC013151
Name of the company	AQUATECH SYSTEMS (ASIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S No. 244/2, Rajiv Gandhi Infotech Park, Hinjewadi, Pune – 411057, Maharashtra, India Email-id - spatro@aquatechasia.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	State Bank of India Industrial Finance Branch, Tara Chambers, 2^nd Floor, Near Mariaai Police Chowky, Pune – Mumbai Highway Road, Wakdewadi, Pune – 411003, Maharashtra, India Email-id - milind.bankapure@sbi.co.in
Nature of instrument creating charge	Joint Deed of Hypothecation
Date of instrument Creating the charge	30.07.2012
Amount secured by the charge	Rs. 2840.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As notified by the bank from time to time Terms of Repayment As stipulated by the bank Margin As per norms of the Bank Extent and Operation of the charge First charge on assets hypothecated
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The whole of the Current Assets of the Borrower namely, Stocks of Raw Materials, Stocks in Process, Semi-Finished and Finished Goods, Stores and Spares not relating to plant and machinery (consumable stores and spares), Stocks in transit, Bills Receivable, Book Debts, all other receivables and all other movables both present and future. The whole of the Borrowers moveable properties (save and except current assets) including its movable plant and machinery, machinery spares, tools and accessories, non-trade receivables and other movables, both present and future.

OPERATIONS

In the month of May 2011, the company has acquired 60% of shares of Wex Technologies Private Limited Wex has Specialty in Water Treatment Chemical industry and manufactures of water chemicals across the water purification industry. Acquisition of Wex brings to table synergies for both Aquatech and Wex. Aquatech needs water chemicals for operation of its various water plants. Hence, this deal would bring the cost effectiveness and dedicated supply chain for Aquatech as well as growing business opportunities for Wex in which increases potential for Wex.

During the year, the total income of the Company stood Rs 1122.486 Millions against Rs 1105.854 Millions during the previous year and the profit before tax stood at Rs 98.317 Millions as compared to pervious year figure of Rs 84.351 Millions.

FIXED ASSETS:

• Land
• Lease Hold land
• Plant and Machinery – Model Plant
• Moulds
• Plant and Machinery
• Equipment Electrical
• Equipment Computer
• Lab and Testing Equipments
• Office Equipments
• Furniture and Fixtures
• Motor Car
• Two Wheeler
• R and D Building
• Plant - RII Jamnagar
• Shell Pilot Plant
• Jubail Plot Plant
• Hinjrewadi Building

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 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. 59.41
UK Pound	1	Rs. 90.73
Euro	1	Rs. 78.11

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.