MIRA INFORM REPORT

Report No. :	335422
Report Date :	03.08.2015

IDENTIFICATION DETAILS

Name :	VA TECH WABAG LIMITED
Registered Office :	“WABAG HOUSE” No.17, 200 Feet Thoraipakam Pallavram Main Road, Sunnambu Kolthur, Chennai – 600117, Tamilnadu
Tel no. :	91-44-39232323
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	17.02.1995
Com. Reg. No.:	18-30231
Capital Investment / Paid-up Capital :	Rs. 108.600 Million
CIN No.: [Company Identification No.]	L45205TN1995PLC030231
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEV02389C
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Subject provided a comprehensive range of services which includes Drinking Eater, Industrial Water, Waste Water, Sea and Brackish Water desalination etc, for the public and private sectors.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company providing turkey solutions for water and waste treatment to municipal and industrial segments having fine track record. Management has seen an increase in its sales volume during 2015. The company possesses a strong financial profile characterized by a highly conservative capital structure, comfortable coverage indicators and large cash reserves. The ratings also take into consideration the large receivables position reported during the year under review and the favourable long term demand prospects for waste water treatment project. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. It view of strong technical capabilities arising out of experienced promoters and management, the subject can be considered good for normal 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	ICRA
Rating	Long Term fund based facilities: AA-
Rating Explanation	High Degree of safety and very low credit risk.
Date	November 2014

Rating Agency Name	ICRA
Rating	Short Term non fund based facilities: A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	November 2014

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Karthik
Designation :	Treasury
Contact No.:	91-44-39232458

LOCATIONS

Registered / Corporate Office :	“WABAG HOUSE” No.17, 200 Feet Thoraipakam Pallavram Main Road, Sunnambu Kolthur, Chennai – 600117, Tamilnadu, India
Tel. No.:	91-44-39232323
Fax No.:	91-44-39232324
E-Mail :	wabag@bdwt.com wabag@wabag.in companysecretary@wabag.in
Website :	http://www.wabagindia.com
Regional Office 1 :	Bhakti Plaza, 2nd Floor, Near Aundh Police Chowki, Aundhgao, Pune-411007, Maharashtra, India
Tel. No.:	91-20-66424900 / 66424901
Fax No.:	91-20-66424949
Regional Office 2 :	Nagras Road, New DP Road, 1^st Floor, Harsh Orchid Aundh Pune – 411007, Maharashtra, India
Regional Office 3 :	Ec-33, Sector -1, 1st Floor, Salt Lake City, Kolkata-700064, Maharashtra, India
Tel. No.:	91-33-23376779/ 23376778
Fax No.:	91-33-23376779
Regional Office 4 :	S-14, Second Floor, Green Park Extension, New Delhi-110016, India
Tel. No.:	91-11-41006634 / 41006635 / 41006636
Fax No.:	91-11-41006637

DIRECTORS

As on 31.03.2015

Name :	Mr. Bhagwan Dass Narang
Designation :	Independent Chairman
Address :	Flat No. 29, DDA Apartments, Pocket-F, SFS Scheme, Sheikh Sarai, Phase-I, New Delhi-110017, India
Date of Birth/Age :	12.04.1945
Date of Appointment :	07.09.2009
DIN No. :	00038052
Name :	Mr. Rajiv Mittal
Designation :	Managing Director
Address :	No. 13A , Jeevarathinam Nagar, First Street, Adyar, Chennai – 600 020, Tamilnadu, India
Date of Birth/Age :	08.04.1960
Date of Appointment :	27.09.2000
DIN No. :	01299110
Name :	Mr. Jaithirth Rao
Designation :	Independent Director
Address :	# 61, Umang, Kashibai Navrang Marg, Gamdevi, Mumbai-400007, Maharashtra, India
Date of Birth/Age :	12.07.1953
Date of Appointment :	31.01.2007
DIN No. :	00025289
Name :	Mr. Sumit Chandwani
Designation :	Independent Director
Address :	2001, Era3, Marathon Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
Date of Birth/Age :	11.11.1967
Date of Appointment :	13.09.2005
DIN No. :	00179100
Name :	Mr. Revathi Kasturi
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. S. Varadarajan
Designation :	Chief Financial Officer
Name :	Mr. Rajiv Balakrishnan
Designation :	Company Secretary
Name :	Mr. Karthik
Designation :	Treasury
Name :	M. Damodaran
Designation :	Practicing Company Secretary
Address :	M. Damodaran and Associates, New. No. 6, Old No. 12, Appavoo Gramani 1st Street, Mandaveli, Chennai - 600 028
Tel no.:	91 44 4360 1111

SHAREHOLDING PATTERN

As on 30.06.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6063998	11.15
Sub Total	6063998	11.15
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	9709406	17.84
Sub Total	9709406	17.84
Total shareholding of Promoter and Promoter Group (A)	15773404	28.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11346043	20.85
Financial Institutions / Banks	175969	0.32
Insurance Companies	31914	0.06
Foreign Institutional Investors	15697685	28.85
Sub Total	27251611	50.09
(2) Non-Institutions
Bodies Corporate	4334637	7.97
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	5210347	9.58
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	201300	0.37
Any Others (Specify)	1638562	3.01
Non Resident Indians	255605	0.47
Clearing Members	42528	0.08
Trusts	2044	0.00
Others	1338385	2.46
Sub Total	11384846	20.92
Total Public shareholding (B)	38636457	71.01
Total (A)+(B)	54409861	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	54409861	100.00

BUSINESS DETAILS

Line of Business :

Subject provided a comprehensive range of services which includes Drinking Eater, Industrial Water, Waste Water, Sea and Brackish Water desalination etc, for the public and private sectors.

Products :

Products Description	Item Code No.
Water Treatment Plant	841989.03
Wastewater Treatment Plant	841989.04

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Purchasing :

Cash, L/C, Cheque and Credit (60/90 Days)

Selling :

Cash, L/C, Cheque and Credit (60/90 Days)

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

2000 (Approximately)

Bankers :

· ICICI Bank Limited

Landmarkrace Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

· State Bank of India

Industrial Finance Branch, 155, Anna Salai, Chennai – 600002, Tamilnadu, India

· The HongKong and Shanghai Banking Corporation Limited

76, Cathedral Road, Chennai-600086, Tamilnadu, India

· YES Bank Limited

· HDFC Bank Limited

· IDBI Bank Limited

· Punjab National Bank

· Societe Generale Bank

· ING VYSYA Bank

· Standard Chartered Bank

· Axis Bank Limited

· Kotak Mahindra Bank Limited

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
SHORT TERM BORROWING
Term loan from Banks
Overdraft account/packing credit	626.000	890.300
Total	626.000	890.300

These packing credits are repayable within 180 days from the date of availment and is secured against foreign currency receivables. During the year the company has availed packing credit in foreign currency amounting to Rs. 19,24.700 Million (Previous year: Rs. 7,24.600 Million) at an interest rate ranging from 0.9% to 1.5%.

Statutory Auditors :
Name :	Walker, Chandiok and company Chartered Accountants
Address :	Arihant Nitco Park, 6th floor No.90, Dr. Radhakrishnan Salai Mylapore, Chennai - 600 004, Tamilnadu, India
Internal Auditors :
Name :	G. Balu Associates Chartered Accountants
Address :	4 - A, Venkatesa Agraharam Road Mylapore, Chennai - 600 004, Tamilnadu, India
Tel No.:	91- 44 - 2464 2377
Cost Auditor :
Name :	S.Chandrasekaran, Practicing Cost Accountant
Address :	Membership No. 47844 Sreshta, 57 Subramaniam Street, Abhiramapuram, Chennai - 600 018, Tamilnadu, India
Tel No.:	91-44 - 2499 0286
Memberships :	Not Available
Collaborators :	Not Available
Subsidiaries:	· VA Tech Wabag Singapore (Pte) Limited, Singapore · VA Tech Wabag GmbH, Austria · Wabag Wassertechnik AG, Switzerland · VA Tech Wabag Deutschland GmbH, Germany · VA Tech Wabag Brno Spol S.R.O, Czech Republic · Wabag Water Services (Macao) Limited, Macao · Wabag Water Services s.r.l, Romania · VA Tech Wabag Tunisia s.a.r.l., Tunisia · Ujams Wastewater Treatment Company (Pty) Limited, Namibia · VA Tech Wabag Algeria s.a.rl., Algeria · VA Tech Wabag Tecknolojisi Ve Ticaret Limited, Turkey · VA Tech Wabag (Hong Kong) Limited, Hong Kong · VA Tech Wabag Egypt Limited, Egypt · Beijing VA Tech Wabag Water Treatment Technology Company Limited, China · VA Tech Wabag Muscat LLC, Oman · VA Tech Wabag (Philippines) Inc, Philippines · VA Tech Wabag (Spain) S.L.U, Spain · VA Tech Wabag Limited - Pratibha Industries Limited JV, Nepal · Wabag Limited, Thailand · Wabag Operation And Maintenance WLL, Bahrain
Associates:	· Windhoek Goreangab Operating Company Limited, Namibia · OEG Renew Waters (Thoothukudi) Private Limited
Joint Ventures:	· International Water Treatment LLC, Oman (Incorporated on 23 February 2013)
	·

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital:

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.2/- each	Rs.150.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
54285110	Equity Shares	Rs.2/- each	Rs. 108.600 Million

1. Reconciliation of share capital (Equity)

Balance at the beginning of the year	2,65,45,772	531
Add : Issued pursuant to Employee Stock Option Plan	550425	11
Add : Issued pursuant to Bonus issue	2,71,42,555	543
Balance at the end of the year	5,42,85,110	1,086

Shareholders holding more than 5% of the aggregate shares in the Company

	Nos.	% holding
Equity Shares of Rs. 2 each
Mr. Rajiv Mittal (Managing Director)	97,09,406	18%
IDFC Premier Equity Fund	39,37,178	7%
Emerging Markets Growth Fund Inc.	14,66,254	3%

Details of shares issued as fully paid up by way of bonus issues

Year	Face value	Bonus issue
Equity Shares
31 March 2015	2	2,71,42,555

d) Terms/ rights attached to equity shares

The Company has issued only one class of equity shares having a face value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

In the event of liquidation, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the year ended 31 March 2015, the amount of dividend per share, recognised as distributions to the equity

shareholders of face value Rs.2 each was Rs.4 (Previous year : Rs.8).

e) Bonus issue

The Company has allotted 2,71,42,555 fully paid up equity shares of face value Rs. 2 each during the year ended 31 March 2015, pursuant to the bonus issue approved by the shareholders through postal ballot by capitalization of share premium. The record date fixed by the Board of Directors was 27 March 2015. Bonus share of one equity share for every equity share held has been allotted. The earning per share has been adjusted for the previous periods presented in accordance with Accounting Standard 20, Earning per share.

f) Shares reserved for issue under options

The Company had reserved issuance of Equity shares 7,03,308 of Rs. 2 each (Previous year : 9,60,813 shares of Rs. 2 each) for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Plan (ESOP).

Particulars	Number of options	Weighted average exercise price (`)
Outstanding as at 01 April 2013	17,823	36
Exercised	11,814	36
Lapsed	875
Outstanding as at 31 March 2014	5,134	36
Exercised	5,134	36
Lapsed	--	36
Outstanding as at 31 March 2015	--	36

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	108.600	53.200	53.100
(b) Reserves & Surplus	6753.400	5975.100	5312.600
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	1.300	2.200	0.400
Total Shareholders’ Funds (1) + (2)	6863.300	6030.500	5366.100
(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	2046.200	1548.800	798.000
(d) long-term provisions	168.600	73.700	55.200
Total Non-current Liabilities (3)	2214.800	1622.500	853.200
(4) Current Liabilities
(a) Short term borrowings	626.000	890.300	545.100
(b) Trade payables	5575.300	5444.300	5335.600
(c) Other current liabilities	968.100	1361.400	728.600
(d) Short-term provisions	817.700	673.700	701.500
Total Current Liabilities (4)	7987.100	8369.700	7310.800
TOTAL	17065.200	16022.700	13530.100
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	989.900	927.500	274.300
(ii) Intangible Assets	0.000	91.400	117.600
(iii) Capital work-in-progress	0.000	0.500	320.600
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	253.600	184.200	153.600
(c) Deferred tax assets (net)	200.900	104.700	87.000
(d) Long-term Loan and Advances	95.500	9.700	32.000
(e) Other Non-current assets	2088.600	1970.000	1327.100
Total Non-Current Assets	3628.500	3288.000	2312.200
(2) Current assets
(a) Current investments	350.000	200.000	0.000
(b) Inventories	298.300	144.200	158.700
(c) Trade receivables	9833.100	9236.800	7823.300
(d) Cash and cash equivalents	1282.600	1564.300	1713.700
(e) Short-term loans and advances	741.700	735.300	909.300
(f) Other current assets	931.000	854.100	612.900
Total Current Assets	13436.700	12734.700	11217.900
TOTAL	17065.200	16022.700	13530.100

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	12333.600	11522.400	10,571.70
	Other Income	91.200	116.300	125.600
	TOTAL (A)	12424.800	11638.700	10697.300
Less	EXPENSES
	Cost of sales and Services	9576.600	8671.800	7981.800
	Decrease in inventories	(154.100)	14.500	190.500
	Employees benefits expense	806.000	801.900	688.700
	Other expenses	612.500	623.300	322.300
	TOTAL (B)	10841.000	10111.500	9183.300
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	1583.800	1527.200	1514.000
Less	FINANCIAL EXPENSES (D)	149.200	123.600	115.200
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1434.600	1403.600	1398.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)	74.500	80.900	66.100
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1360.100	1322.700	1332.700
Less	TAX (I)	456.000	436.900	431.600
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	904.100	885.800	901.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	3486.700	2512.300	1918.700
Less	APPROPRIATIONS
	Transfer to General Reserve	NA	(88.600)	90.100
	Proposed Dividend (Including Dividend Tax)	NA	0.000	217.400
	Total (M)	NA	(88.600)	307.500
	Balance Carried to the B/S (J+K+L-M)	4390.800	3486.700	2512.300
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	3119.800	3180.800	1850.400
	TOTAL EARNINGS	3119.800	3180.800	1850.400
	IMPORTS
	Raw Materials	215.500	694.700	2358.500
	Components and Stores parts	0.000	3.600	0.000
	Capital Goods	215.500	0.000	0.000
	TOTAL IMPORTS		698.300	2358.500
	Earnings / (Loss) Per Share (Rs.)	16.59	33.30	34.00

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	605.500	1690.500	1402.800
Net cash generated from operating activities	55.600	1124.100	1119.900

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	7.33	7.69	8.52
Operating Profit Margin (PBDIT / Sales)	(%)	12.84	13.25	14.32
Return on Total Assets (PBT/Total Assets}	(%)	8.19	8.41	10.28
Return on Investment (ROI) (PBT/Networth)		0.20	0.22	0.25
Debt Equity Ratio (Total Debt /Networth)		0.09	0.15	0.10
Current Ratio (Current Asset/Current Liability)		1.68	1.52	1.53

STOCK PRICES

Face Value	Rs.2.00
Market Value	Rs.761.00

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	53.100	53.200	108.600
Reserves & Surplus	5312.600	5975.100	6753.400
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.400	2.200	1.300
Net worth	5366.100	6030.500	6863.300
long-term borrowings	0.000	0.000	0.000
Short term borrowings	545.100	890.300	626.000
Total borrowings	545.100	890.300	626.000
Debt/Equity ratio	0.102	0.148	0.091

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	10571.700	11522.400	12333.600
		8.993	7.040

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	10571.700	11522.400	12333.600
Profit	901.100	885.800	904.100
	8.52%	7.69%	7.33%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATIONS DETAILS

MADRAS HIGH COURT

Case Status :	Pending
Status Of :	APPLICATION  1653  Of  2014
Litigants :	STATE BANK OF INDIA  Vs.  VA TECH WABAG LIMITED
Pet's Adv :	M/S.S.SETHURAMAN
Res's Adv :	M/S.SATISH PARASARAN
Last Listed On :	Thursday, March 06, 2014
Case Updated On :	Monday, May 26, 2014
Category :	---

MANAGEMENT’S DISCUSSION AND ANALYSIS

WABAG Opportunity

The WABAG Group is a leading multinational player with a workforce of over 2,000 people, with companies and offices in more than 30 countries. It operates through unique technological know-how, based on patented technologies and long-term experience.

Since 1996, WABAG built over 900 water and wastewater plants worldwide. Through the conservation and ecological use of the world’s most valuable resource, WABAG has made a sustained contribution in the quality of life of over a hundred million people.

Around the world, the WABAG name stands for innovative and successful solutions in the water engineering sector. As an internationally respected expert group, we act as a systems specialist and full service provider with a focus on the planning, installation and operation of drinking and wastewater plants for local governments and industries in the growth markets of Asia, Africa, the Middle East, the Central and Eastern European countries.

Global economy

The global economy is expected to grow at a modest pace of 3.5% in 2015, as against 3.4% in 2014. However, it must be emphasised that the pattern of growth is largely uneven across geographies.

The US economy is poised to grow strongly exceeding expectations on account of domestic demand supported by the upward trend in the US economy in 2014. The UK is well on its way to recovery. In comparison, Eurozone, Japan, China and other emerging markets have to discover new ways to revive growth. To counter weak growth, the European Central Bank has adopted an accommodative monetary policy stance. Japan has not yet recovered from the consumption tax levied last year, despite an expansionary monetary and fiscal policy. A weak yen, however, is bolstering Japanese exports. China experiences a weak property market and excess capacity in some industries.

Lower oil prices in FY 2014-15 bring substantial savings into government coffers and give an opportunity to reform energy subsidies and taxes in both oil exporting and importing nations. In oil importing nations, the saving from the removal of general energy subsidies is expected to be used to increase public infrastructure spending for many emerging economies.

GENERAL INFORMATION

VA Tech Wabag Limited (‘the Company’), its subsidiaries, associates and joint ventures (collectively referred to as ‘the Group’) is one of the world’s leading companies in the water treatment field. The group’s principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment , industrial water treatment and desalination plants. The shares of the Company are listed in the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

All amounts in the standalone financial statements are presented in Rupees in lakhs except per share data and as otherwise stated. Figures for the previous year have been regrouped / rearranged wherever considered necessary to conform to the figures presented in the current year.

The Company is in the business of execution of turnkey projects for water management and hence the requirements under paragraph 5(ii)(a), 5(ii)(b) and 5(ii) (d) of Part II of Schedule III to the Companies Act, 2013 are not applicable.

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10449852	29/08/2013	1,350,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	B85313211
2	10053844	25/06/2012 *	11,925,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 155, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	B58406331

* Date of charge modification

FIXED ASSETS:

· Freehold Land

· Plant and Machinery

· Furniture and Fittings

· Electrical Equipments

· Office Equipments

· Computers

· 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.66.00
UK Pound	1	Rs.99.83
Euro	1	Rs.70.16

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	KIN
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		66

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.