MIRA INFORM REPORT

Report Date :

07.10.2013

IDENTIFICATION DETAILS

Name :	FALCON PUMPS PRIVATE LIMITED
Registered Office :	Survey No.39/4,Vavdi Industrial Area, B/H. Hotel Krishna Park, Gondal Road, N.H.8B, Rajkot – 360004, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.05.1997
Com. Reg. No.:	04-032360
Capital Investment / Paid-up Capital :	Rs. 5.000 Millions
CIN No.: [Company Identification No.]	U55101GJ1997PTC032360
TAN No.: [Tax Deduction & Collection Account No.]	RKTF00050B
PAN No.: [Permanent Account No.]	AAACF3196P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Submersible Pumps and Motors.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 800000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. Trade relation reported to be fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealing 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 – 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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based cash credit – BBB
Rating Explanation	Moderate credit quality and average credit risk.
Date	August 2012.

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

Name :	Mr. Hardik Vyas
Designation :	Senior Manager Exports
Contact No.:	91-9727700583
Date :	26.09.2013

LOCATIONS

Registered Office / Factory :	Survey No.39/4,Vavdi Industrial Area, B/H. Hotel Krishna Park, Gondal Road, N.H.8B, Rajkot – 360004, Gujarat, India
Tel. No.:	91-281-2370801/02/03/04/05
Mobile No.:	91-91-9727700583 (Mr. Hardik Vyas)
Fax No.:	91-281-2374422
E-Mail :	sales@falconpumps.in rpc.efiling@gmail.com info@falconpumps.in export@falconpumps.in
Website :	www.falconpumps.in
Area :	220000 Sq. Ft.
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Kamalnayan Sojitra
Designation :	Director
Address :	Sadguru Tower, A-9, Opposite Wockhardt Hospital, Kalawad Road, Rajkot, Gujarat, India
Date of Appointment :	19.05.1997
PAN No.:	AGNPS6938C
DIN No.:	00643755
Name :	Mr. Bhargav Dhirajlal Suvagiya
Designation :	Director
Address :	“Dhumketu”, Jamuna Heritage, Plot No. 55/56/57, Opposite Gandhi School, Nana Mava Road, Rajkot, India
Date of Appointment :	01.10.2009
PAN No.:	BNLPS9618B
DIN No.:	02850963
Name :	Mr. Dhirajlal Laljibhai Suvagia
Designation :	Managing Director
Address :	“Dhumketu”, Jamuna Heritage, Plot No. 55/56/57, Opposite Gandhi School, Nana Mava Road, Rajkot, India
Date of Birth/Age :	05.04.1961
Date of Appointment :	30.09.2010
PAN No.:	AGBPS8834K
DIN No.:	01197188
Name :	Mrs. Meeraben Kamalnayanbhai Sojitra
Designation :	Director
Address :	Sadguru Tower, A-9, Opposite Wockhardt Hospital, Kalawad Road, Rajkot, Gujarat, India
Date of Birth/Age :	26.02.1975
Date of Appointment :	30.09.2010
PAN No.:	AGNPS9476K
DIN No.:	03286497
Name :	Mrs. Bhavnaben Dhirajlal Suvagiya
Designation :	Director
Address :	“Dhumketu”, Jamuna Heritage, Plot No. 55/56/57, Opposite Gandhi School, Nana Mava Road, Rajkot, India
Date of Birth/Age :	15.06.1963
Date of Appointment :	30.09.2010
PAN No.:	AFYPS7124L
DIN No.:	03286507

KEY EXECUTIVES

Name :	Mr. Hardik Vyas
Designation :	Senior Manager Exports

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Dhirajlal L. Suvagiya	14850
Kamalnayan R. Sojitra	9150
Bhargav D. Suvagiya	1000
Dhirajlal L. Suvagya (HUF)	14350
Bhavnaben D. Suvagiya	2500
Kamalnayan R. Sojitra (HUF)	5000
Miraben K. Sojitra	2500
Namrata D. Suvagiya	650
Total	50000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Submersible Pumps and Motors.
Products :	Submersible Pump Submersible Motor Centrifugal Mono Block Self Priming Mono Block Open Well Submersible U PVC Column Pipe Submersible Flat Cable
Exports :
Products :	Submersible Pumps and Motors
Countries :	Asian Countries Gulf Countries Middle East African Countries
Imports :
Products :	Raw material
Countries :	Korea Japan UAE US
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity
Pumps and Electric Motors	Nos.	150000

GENERAL INFORMATION

Customers :

End users

No. of Employees :

700 (Approximately)

Bankers :

• Bank of Baroda, Rajkot Main Branch, Bank of Baroda Building, Ground Floor, M. G. Road,, Rajkot - 360001, Gujarat, India

• Corporation Bank, SSI Branch J P Tower, Tagor Road, Rajkot - 360002, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Rupee term loans from banks	6.475	8.286
Short term borrowings
Working capital loans from banks	92.274	111.608
Total	98.749	119.894

Banking Relations :	--
Auditors :
Name :	R.P.C. and Company Chartered Accountants
Address :	203-204, Race Course Plaza, Near Excise Custom Building, Race Course Ring Road, Rajkot – 360001, Gujarat, India
PAN No.:	AAJFR1869F
Related Parties :	Flotech Engineering Private Limited Fab Cable Corporation Sun Castings Falcon Pipes Private Limited
Sister Concern:	Flotech Cables Private Limited

CAPITAL STRUCTURE

As on: 29.09.2012

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
50000	Equity Shares	Rs.10/- each	Rs. 5.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.000	0.980
(b) Reserves & Surplus	195.440	145.664
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	200.440	146.644
(3) Non-Current Liabilities
(a) long-term borrowings	32.218	29.212
(b) Deferred tax liabilities (Net)	0.674	0.606
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	32.892	29.818
(4) Current Liabilities
(a) Short term borrowings	92.273	111.608
(b) Trade payables	158.441	126.155
(c) Other current liabilities	50.565	7.918
(d) Short-term provisions	30.348	30.866
Total Current Liabilities (4)	331.627	276.547
TOTAL	564.959	453.009
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	73.127	69.775
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	5.507	0.466
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.003	0.003
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	5.002	1.683
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	83.639	71.927
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	301.598	206.712
(c) Trade receivables	114.550	92.393
(d) Cash and cash equivalents	0.977	25.247
(e) Short-term loans and advances	63.784	56.486
(f) Other current assets	0.411	0.244
Total Current Assets	481.320	381.082
TOTAL	564.959	453.009

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.980
2] Share Application Money		0.000
3] Reserves & Surplus		97.415
4] (Accumulated Losses)		0.000
NETWORTH		98.395
LOAN FUNDS
1] Secured Loans		63.551
2] Unsecured Loans		14.093
TOTAL BORROWING		77.644
DEFERRED TAX LIABILITIES		0.000
TOTAL		176.039
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49.674
Capital work-in-progress		4.078
INVESTMENT		0.003
DEFERREX TAX ASSETS		0.037
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	223.995
	Sundry Debtors	63.789
	Cash & Bank Balances	1.515
	Other Current Assets	0.000
	Loans & Advances	62.150
Total Current Assets		351.449
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	189.349
	Other Current Liabilities	5.846
	Provisions	34.007
Total Current Liabilities		229.202
Net Current Assets		122.247
MISCELLANEOUS EXPENSES		0.000
TOTAL		176.039

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	898.349	837.715
		Other Income
		TOTAL (A)	898.349	837.715
Less	EXPENSES
		Office Expenses	804.562	745.745
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	804.562	745.745
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		93.787	91.970
Less	FINANCIAL EXPENSES (D)		15.008	8.850
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		78.779	83.120
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.857	4.361
	PROFIT BEFORE TAX (E-F) (G)		72.922	78.759
Less	TAX (H)		24.485	26.700
	PROFIT AFTER TAX (G-H) (I)		48.437	52.059
	Earnings Per Share (Rs.)		4942.55	NA

Particulars	31.03.2013
Sales Turnover (Approximately)	1880.000

The above information has been parted by Mr. Hardik Vyas

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	5.39	6.21
Return on Total Assets (PBT/Total Assets}	(%)	NA	16.11	28.24
Return on Investment (ROI) (PBT/Networth)		NA	0.50	0.80
Debt Equity Ratio (Total Debt/Networth)		0.62	0.97	0.79
Current Ratio (Current Asset/Current Liability)		1.45	1.38	1.53

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	Yes
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)	Yes
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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Loans and advance from directors	4.160	5.357
Loans and advance from others	21.582	15.569
Total	25.742	20.926

NOTE: The registered office address of the company has been shifted from “7 Parsana Society, 50 Feet Road, Rajkot, Gujarat, India” to the present address w.e.f.12.06.2008.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10405951	15/07/2013 *	249,500,000.00	AXIS BANK LIMITED	GROUND FLOOR, SHIVALIK-5, G-2B, GONDAL MAIN ROAD,  NEAR MAKKAM CHOWK, BHAKTI NAGAR, RAJKOT, Gujarat - 360002, INDIA	B81716110

* Date of charge modification

FIXED ASSETS

• Land
• Factory Plot
• Factory Building
• Plant and Machinery
• Furniture
• Office Equipments
• 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 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. 61.41
UK Pound	1	Rs.99.29
Euro	1	Rs.83.68

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.