MIRA INFORM REPORT

Report No. :	328316
Report Date :	23.06.2015

IDENTIFICATION DETAILS

Name :	PENTAIR WATER TREATMENT PRIVATE LIMITED
Registered Office :	L/52-55, Verna Industrial Estate Phase II, Verna, Salcete, Margao – 403722, Goa
Tel. No.:	91-832-2883300
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.07.1997
Com. Reg. No.:	24-002373
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U29197GA1997PTC002373
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Trading in components/equipment for water treatment liquid processing/ handling equipment.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary company of Pentair Water India Private Limited. It is a well-established private limited company incorporated in the year 1997, having satisfactory track. Rating takes into consideration company’s relatively high gearing in FY 14. However, company has recorded profit from its operations in financial year 2014 as compared to previous year loss. As per directors report company has witnessed 19% growth in its sales turnover. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 DECLINED

MANAGEMENT NON CO-OPERATIVE (91-832-2883300)

LOCATIONS

Registered Office :	L/52-55, Verna Industrial Estate Phase II, Verna, Salcete, Margao – 403722, Goa, India
Tel. No.:	91-832-2883300
Fax No.:	Not Available
E-Mail :	Maruthi.Venkat@pentair.com

DIRECTORS

AS ON 29.09.2014

Name :	Mr. Maruthi Krishna Venkata Rao Gudivada
Designation :	Director
Address :	Flat C-2, Block A, Sundew Apts., Near Cine Vishant, Margao - 403601, Goa, India
Date of Birth/Age :	01.06.1977
Date of Appointment :	21.01.2008
DIN No.:	02032136
Name :	Juan Francisco Brondo
Designation :	Director appointed in casual vacancy
Address :	2324 Red River Dr, Mission Tx, Texas, 78572, Mexico
Date of Birth/Age :	17.10.1961
Date of Appointment :	22.03.2010
DIN No.:	03015949
Name :	Angela Dee Lageson
Designation :	Director appointed in casual vacancy
Address :	21 Ludlow Ave, St Paul, Minnesota, 55108, United States of America
Date of Birth/Age :	11.09.1968
Date of Appointment :	22.03.2010
DIN No.:	03018715
Name :	Mr. Raghunath Vitthal Mane
Designation :	Director
Address :	Flat No 1, Villa Avetti, Behind China House, Murida, Fatorda, Salcete - 403602, Goa, India
Date of Birth/Age :	01.06.1973
Date of Appointment :	01.03.2013
DIN No.:	06611549

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2014

Names of Shareholders	No. of Shares	%age holding
Pentair Water India Private Limited, India	740	74.00
Babu Suri Gopi	260	26.00
Total	1000	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2014

Category	Percentage
Bodies corporate	74.00
Other top fifty shareholders	26.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trading in components/equipment for water treatment liquid processing/ handling equipment.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

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

No. of Employees :

Information declined by the management

Bankers :

Banker Name	Not Divulged
Branch Address	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :
Name :	Deloitte Haskins and Sells LLP Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra-, India
PAN N Income-tax PAN of auditor or auditor's firm :	AACFD4815A
Memberships :	--
Collaborators :	--
Holding Company of Holding Company:	Pentair Water Treatment (OH) Company, USA
Holding Company:	Pentair Water India Private Limited
Ultimate Holding Company:	Pentair Limited, Switzerland (Formerly known as Pentair Inc, USA)
Fellow Subsidiary:	Pentair Residential Filtration LLC Pentair Pacific Rim (Water) Limited Pentair Water (Suzhou) Company Limited Pentair Water Pool and Spa Inc Pentair Water Australia Pty Limited Pentair Filtration Solutions LLC Pentair Flow Technologies LLC Pentair Pump Group Inc, Aurora Pentair Water Do Brasil Ltds Pentair International LLC Jung Pumpen Pentair Water Asia Pacific Paragon Aquatics of Pacific Pentair Inter Plant Pisa Pentair Water Mexico Schroff GmbH Sudmo Components GmbH Pentair Flow Services AG Pentair Water – New Brigh Pentair Manufacturing BVB Pentair Pool Products Pentair Sothern Cross Pentair Technical Products – China Pentair Aquatic Eco-Systems Fleck Control, Inc Haffman Enclosures Inc Haffmans B V X-Flow B V Pentair Clean Process Technologies India Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs. 5.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000	Equity Shares	Rs.100/- each	Rs. 0.100 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100	0.100
(b) Reserves & Surplus	41.565	30.825	53.273
(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)	41.665	30.925	53.373
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	148.015	154.462	70.288
(b) Trade payables	71.579	79.835	85.976
(c) Other current liabilities	22.890	8.123	7.896
(d) Short-term provisions	7.649	1.880	1.444
Total Current Liabilities (4)	250.133	244.300	165.604
TOTAL	291.798	275.225	218.977
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.427	9.624	2.456
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	15.420	0.000	4.558
(d) Long-term Loan and Advances	2.458	2.452	6.021
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	49.305	12.076	13.035
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	111.395	104.089	102.167
(c) Trade receivables	95.529	119.551	73.204
(d) Cash and cash equivalents	23.923	29.131	18.872
(e) Short-term loans and advances	11.575	10.041	11.494
(f) Other current assets	0.071	0.337	0.205
Total Current Assets	242.493	263.149	205.942
TOTAL	291.798	275.225	218.977

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	607.626	509.506	595.570
	Other Income	1.407	2.362
	TOTAL (A)	609.033	511.868	595.570
Less	EXPENSES
	Purchases of Stock-in-Trade	525.686	457.464
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.306)	(1.922)	588.530 (Including Financial Expenses and Depreciation)
	Other expenses	87.721	74.085
	TOTAL (B)	606.101	529.627
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2.932	(17.759)
Less	FINANCIAL EXPENSES (D)	0.513	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	2.419	(17.759)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	1.399	0.345
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1.020	(18.104)	7.040
Less	TAX (H)	-9.719	4.343	4.180
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	10.739	(22.447)	2.860
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	30.820	53.270	50.410
	Balance Carried to the B/S	41.560	30.820	53.270
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	57.980	53.492	35.079
	TOTAL EARNINGS	57.980	53.492	35.079
	IMPORTS
	Trading Goods	427.524	365.400	404.814
	TOTAL IMPORTS	427.524	365.400	404.814
	Earnings / (Loss) Per Share (Rs.)	10739.00	(22448.00)	2862.00

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	22.563	(71.014)	(24.414)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.77	(4.41)	NA
Operating Profit Margin (PBIDT/Sales)	(%)	0.48	(3.49)	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.37	(6.58)	3.28
Return on Investment (ROI) (PBT/Networth)		0.02	(0.59)	0.13
Debt Equity Ratio (Total Debt /Networth)		3.55	4.99	1.32
Current Ratio (Current Asset/Current Liability)		0.97	1.08	1.24

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.100	0.100	0.100
Reserves & Surplus	53.273	30.825	41.565
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	53.373	30.925	41.665
long-term borrowings	0.000	0.000	0.000
Short term borrowings	70.288	154.462	148.015
Total borrowings	70.288	154.462	148.015
Debt/Equity ratio	1.317	4.995	3.553

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	595.570	511.868	609.033
		(14.054)	18.982

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	595.570	511.868	609.033
Profit	2.860	(22.447)	10.739
	0.48%	(4.39%)	1.76%

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	No
8	Designation of contact person	No
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	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
21	Banking facility details	No
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	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

OPERATIONS

The company witnessed approximate 19% growth over last year. Their focused approached and expanding the distribution channels and improved product lead times helped us to achieve this growth inspite of having general economic softness in the market.

UNSECURED LOAN

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
SHORT TERM BORROWING
Loans and advance from related parties Advance from holding company (Loans and advance from related party is interest free and repayable on demand)	148.015	154.462
Total	148.015	154.462

FIXED ASSETS

Tangible Assets

• Furniture and Fixtures
• Office Equipment
• Other Equipment
• Plant and Machinery
• Computer

Intangible Assets

• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.51
UK Pound	1	Rs.100.94
Euro	1	Rs.72.32

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KIN
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	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		41

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.