MIRA INFORM REPORT

Report Date :

03.11.2014

IDENTIFICATION DETAILS

Name :	GRUNDFOS PUMPS INDIA PRIVATE LIMITED
Registered Office :	No.118, Rajiv Gandhi Salai, Old Mahabalipuram Road, Thoripakkam, Chennai – 600097, Tamilnadu
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	13.03.1998
Com. Reg. No.:	18-040102
Capital Investment / Paid-up Capital :	Rs.162.345 Millions
CIN No.: [Company Identification No.]	U29309TN1998PTC040102
TAN No.: [Tax Deduction & Collection Account No.]	CHEG02229D
PAN No.: [Permanent Account No.]	AAACG8981B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of all Kinds of Pumps like Circulator Pumps (UP), Submersible Pumps (SP) and Centrifugal Pumps (CR).
No. of Employees :	Information decline by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 3500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There is a dip in profit of the company in the year 2013. However, Liquidity position of the company is strong and healthy. There are no external borrowings recorded by the company. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered for 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had illfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DENIED

Management Non Cooperative (Tel. No. : 91-44-45966800)

LOCATIONS

Registered/ Head/ Chennai Sales Office :	No.118, Rajiv Gandhi Salai, Old Mahabalipuram Road, Thoripakkam, Chennai – 600097, Tamilnadu, India
Tel. No.:	91-44-24966800/ 45966800
Fax No.:	91-44-24966868/ 45966868/ 24966969
E-Mail :	gopal@grundfos.com salesindia@grundfos.com ranganath@grundfos.com serviceindia@grundfos.com carlo@grundfos.com
Website :	http://www.grundfos.com http://www.grundfos.in
Location :	Owned
Regional Office :	Located at: · Mumbai · Delhi · Bangalore · Kolkata · Hyderabad · Pune · Ahmedabad · Nagpur · Bhubaneshwar · Maldives

DIRECTORS

As on 10.02.2014

Name :

Mr. Nugahalli Krishna Ranganath

Designation :

Managing Director

Address :

APT 5, Sreshtha Apartments, Old No.57, Subramaniya Street, Abhiramapuram, Chennai – 600018, Tamilnadu, India

Date of Birth/Age :

13.03.1956

Experience :

13 years

Date of Appointment :

06.03.2008

DIN No.:

00004044

Other Directorships :

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	Company/ LLP Status	Defaulting status
1	L17121TN1988PLC015655	CELEBRITY FASHIONS LIMITED	Director	06/09/2005	06/09/2005	Active	NO
2	U29130DL1999PTC098685	GRUNDFOS ENGINEERING INDIA PRIVATE LIMITED	Managing director	28/02/2006	28/02/2006	Amalgamated	NO
3	U29309TN1998PTC040102	GRUNDFOS PUMPS INDIA PRIVATE LIMITED	Managing director	06/03/2008	08/03/2006	Active	NO
4	L18101TN2009PLC073017	INDIAN TERRAIN FASHIONS LIMITED	Director	30/09/2011	20/09/2010	Active	NO
5	U18101TN2009PLC073049	CELEBRITY CLOTHING LIMITED	Director	28/09/2011	09/10/2010	Active	NO

Name :

Mr. Keld Fensten Madsen

Designation :

Director

Address :

Fennebakken 279, Viborg, 8800, Denmark, Danish

Date of Birth/Age :

21.02.1956

Date of Appointment :

25.01.1999

DIN No.:

01297421

Name :

Mr. Carlo Domenico Prola

Designation :

Director

Address :

Laskedalen 81, 8220 Brabrand, Italy

Date of Birth/Age :

15.02.1952

Date of Appointment :

06.03.2008

DIN No.:

02199703

Name :

Ms. Betul Ozlem Kansu

Designation :

Additional Director

Address :

Mimar Sinan MH Barbaros CD Isimsiz SK, No. 8/A 1/3, Cekmekoy, Istanbul NA, Turkey

Date of Birth/Age :

29.05.1974

Date of Appointment :

19.10.2011

DIN No.:

06431987

Name :

Mr. Peter Krarup

Designation :

Director

Address :

327 Bukit Road, 11-02 Ferrel Residences, Singapore, 259715

Date of Appointment :

11.02.2014

DIN No.:

06836323

KEY EXECUTIVES

Name :	Mr. Venkataraman A.
Designation :	Company Secretary
Address :	14/121, Abhiramapuram, 4^th Street, Abhiramapuram, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	17.06.1963
Date of Appointment :	11.05.2012
PAN No.:	AAGPA8023K
Email :	venkataraman@grundfos.com
Name :	Mr. Palamadai Subramanian Margabandu
Designation :	Company Secretary
Date of Appointment :	11.06.2007
PAN No.:	AGUPM2211P

MAJOR SHAREHOLDERS

As on 10.02.2014

Names of Shareholders	No. of Shares
Nugahalli Krishna Ranganath	1
Grundfos Holding AG, Switzerland	1623436
Grundfos A/S	10
Total	1623447

Equity Share Break up (Percentage of Total Equity)

As on 10.02.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of all Kinds of Pumps like Circulator Pumps (UP), Submersible Pumps (SP) and Centrifugal Pumps (CR).

GENERAL INFORMATION

No. of Employees :	Information decline by the management
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	M K Ananthanarayanan Chartered Accountant
Address :	ASV N Ramanas Tower, 52 Venkatnarayana Road, T Nagar, Chennai – 600017, Tamilnadu, India
Tel. No.:	91-44-66885000
Fax No.:	91-44-66885050
PAN No.:	AACFD3771D
Holding Company :	· Grundfos Holding AG, Switzerland
Fellows Subsidiaries :	Grundfos Singapore Pte Limited, Singapure Grundfos Pompe Italia S.R.L., Italy Grundfos Environment Finland, Finland Grundfos Management A/s, Denmark Alldos (Shanghai) Water Treatment, China Hilge Gmbh and Company Kg, Germany Grundfos Handels AG-Taiwan, , Taiwan, Provunce of China Bombas Grundfos De Mexico Manufacturing, Mexico Grundfos (Ireland) Limited,China Bombas Grundfos De Mexico Manufacturing Bombas Grundfos Chile Limitada, Chile Grundfos DK A/s, Denmark Kelam Jung Industrial Company Limited, Korea Grundfos Pumps (Wuxi) Limited, CHINA Grundfos Manufacturing Ltd, U.K. Grundfos Manufacturing Corporation, UNITED STATES Grundfos Pumper A/S, NORWAY Pompes Grundfos S.A.S, FRANCE Grundfos Pumps (Suzhou) Limited, CHINA Grundfos Distribution Service B.V., NETHERLANDS Grundfos Hungary Manufacturing Limited, HUNGARY Grundfos GMBH, GERMANY

CAPITAL STRUCTURE

As on 10.02.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Share	Rs.100/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1623447	Equity Shares	Rs.100/- each	Rs.162.345 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	162.345	162.345	162.345
(b) Reserves & Surplus	1090.779	1083.186	1026.643
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1253.124	1245.531	1188.988
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	328.952	274.538	220.684
Total Non-current Liabilities (3)	328.952	274.538	220.684
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	548.180	614.647	801.617
(c) Other current liabilities	52.039	36.474	98.912
(d) Short-term provisions	10.798	12.134	22.886
Total Current Liabilities (4)	611.017	663.255	923.415
TOTAL	2193.093	2183.324	2333.087
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	549.291	455.144	474.390
(ii) Intangible Assets	26.088	50.169	74.251
(iii) Capital work-in-progress	5.774	0.505	0.713
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	149.714	145.006	128.624
(d) Long-term Loan and Advances	437.453	335.298	259.934
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1168.320	986.122	937.912
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	516.383	479.888	537.088
(c) Trade receivables	443.314	553.531	546.519
(d) Cash and cash equivalents	37.444	144.175	290.247
(e) Short-term loans and advances	24.755	18.597	18.655
(f) Other current assets	2.877	1.011	2.666
Total Current Assets	1024.773	1197.202	1395.175
TOTAL	2193.093	2183.324	2333.087

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2013	31.12.2012	31.12.2011
	SALES
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		88.864	157.357	257.035
Less	FINANCIAL EXPENSES (D)		0.362	2.556	69.667
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		88.502	154.801	187.368
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.018	71.140	2.171
	PROFIT BEFORE TAX (E-F) (G)		12.484	83.661	185.197
Less	TAX (H)		4.891	27.118	65.276
	PROFIT AFTER TAX (G-H) (I)		7.593	56.543	119.921
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		652.993	596.450	476.528
	BALANCE CARRIED TO THE B/S		660.586	652.993	596.450
	Earnings Per Share (Rs.)		4.68	34.83	73.87

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
Return on Total Assets (PBT/Total Assets}	(%)	0.61	4.11	8.40
Return on Investment (ROI) (PBT/Networth)		0.01	0.07	0.16
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.68	1.81	1.51

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	162.345	162.345	162.345
Reserves & Surplus	1026.643	1083.186	1090.779
Net worth	1188.988	1245.531	1253.124
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
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	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	No
24]	Banking facility details	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

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. 98.06
Euro	1	Rs. 77.19

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUM
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.