MIRA INFORM REPORT

Report No. :	499393
Report Date :	22.03.2018

IDENTIFICATION DETAILS

Name :	SHAKTI PUMPS (INDIA) LIMITED
Registered Office :	Plot No. 401, 402 and 413, Sector-III, Industrial Area, Pithampur – 454774, Madhya Pradesh
Tel. No.:	91-7292-410500
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	21.04.1995
Com. Reg. No.:	10-009327
Capital Investment / Paid-up Capital :	INR 183.802 Million
CIN No.: [Company Identification No.]	L29120MP1995PLC009327
IEC No.: [Import-Export Code No.]	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	BPLS02081C
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Subject is mainly engaged in the business of manufacturing various types of Pumps and Motors. (Registered activity)
No. of Employees :	580 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject was incorporated in the year 1995 having a fine track record. It is engaged in manufacturing of energy efficient stainless steel submersible pumps, pump motors, solar pumps and pressure booster pumps. For the financial year 2017, the company has achieved decent growth in its revenue as compared to its previous year and has reported expansion in its operating profit margin due to high sales volume from solar segment. Rating takes into consideration, the healthy financial risk profile marked by its adequate net worth base and comfortable debt protection metrics. Rating continue to derive strength from its long and established track record of business operations backed by its well-established market position. As per quarterly results (Unaudited) the company has earned the total revenue of INR 1414.005 Million and has clocked the net profit margin of 10.82%. Further, the company is listed on BSE and NSE. Price quoted at BSE is INR 540.20 against its face value of INR 10. Payments seems to be regular and as per commitment. In view of aforesaid, 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Facilities = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	25.09.2017

Rating Agency Name	CARE
Rating	Short Term Facilities = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	25.09.2017

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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 22.03.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Mr. Ashwini Patel
Designation :	Deputy General Manager in Finance
Contact No.:	91-7869959636

LOCATIONS

Registered Office/ Factory / Head Office/ Corporate Office :	Plot No. 401,402 and 413, Sector III, Industrial Area, Pithampur- 454774, District: Dhar, Madhya Pradesh, India
Tel. No.:	91-7292-410500
Mobile No.:	91-7869959612 (Mr. Vinod) 91-7869959636 (Mr. Ashwin Patel)
Fax No.:	91-7292-410519 / 410645
E-Mail :	finance@shaktipumps.com cs@shaktipumpsindia.com info@shaktipumps.com sales@shaKipumps.com
Website :	http://www.shaktipumps.com
Area :	6000 Sq. ft.
Location :	Leased
Branches :	Located at: · Indore, Madhya Pradesh · Jabalpur, Madhya Pradesh · Bhopal, Madhya Pradesh · Mumbai, Maharashtra · Pune, Maharashtra · Nagpur, Maharashtra · Jaipur, Rajasthan · Chennai, Tamil Nadu · New Delhi, Delhi · Raipur, Chhattisgarh · Ranchi, Jharkhand · Kanpur, Uttar Pradesh · Patna, Bihar · Cuttack, Orissa · Cochin, Kerla · Ahmedabad, Gujarat · Bengaluru, Karnataka · Secunderabad, Andhra Pradesh · Andhra Pradesh · Howrah, West Bengal

DIRECTORS

As on 31.03.2017

Name :

Mr. Sridhar Narayan

Designation :

Nominee Director

Address :

21 A, Sagar Sangeet, 58, S B S Marg, Colaba, Mumbai – 400005, Maharashtra, India

Date of Appointment :

26.09.2015

DIN No.:

00137243

Name :

Mr. Dinesh Patidar

Designation :

Managing Director

Address :

354, Saket Nagar, Indore – 452001, Madhya Pradesh, India

Date of Birth/Age :

25.03.1962

Qualification :

Graduate

Experience :

30 years

Date of Appointment :

30.01.2006

DIN No.:

00549552

Name :

Mr. Ramesh patidar

Designation :

Whole Time Director

Address :

208 H Nalanda Parisar Keshar Bagh road, Indore – 452012, Madhya Pradesh, India

Date of Birth/Age :

25.01.1973

Qualification :

M.B.A.

Expertise in specific functional areas:

International Business

Date of Appointment :

01.05.2011

DIN No.:

00931437

Name :

Mr. Navin S Patwa

Designation :

Independent Director

Address :

201, Vitrag Apartment, 64, Shakti Nagar, Telephone Nagar Square, Indore – 452018, Madhya Pradesh, India

Date of Birth/Age :

14.08.1975

Date of Appointment :

28.09.2012

DIN No.:

01009404

Name :

Mrs. Nishtha Neema

Designation :

Director

Address :

26, Saraswati Nagar, Annapurna Road Indore – 452009, Madhya Pradesh, India

Date of Appointment :

26.09.2015

DIN No.:

01743710

Name :

Mr. Shyam Sunder Raghuvanshi

Designation :

Director

Address :

E-6/2 Arera Colony Bhopal – 462016, Madhya Pradesh, India

Date of Birth/Age :

21.12.1935

Qualification :

B.E. (Hons) Civil Engineering

Expertise in specific functional areas :

Completed major water supply projects- Indore, Ujjain, Gwalior and Jabalpur

Date of Appointment :

01.09.2005

DIN No.:

02285727

Name :

Mr. Sunil Patidar

Designation :

Whole Time Director

Address :

354, Saket Nagar, Indore – 452001, Madhya Pradesh, India

Date of Birth/Age :

July 13,1969

Qualification :

Graduate

Expertise in specific functional areas :

Human resources Management and Industrial Relations

Date of Appointment :

30.01.2011

DIN No.:

02561763

Name :

Mr. Pramod Kumar Bhavsar

Designation :

Director

Address :

House No. 361 FH, Scheme No.54 Vijay Nagar, Indore – 452010, Madhya Pradesh, India

Date of Birth/Age :

June 27,1953

Qualification :

B.Sc. (University of Indore), CAIIB Pt.-I.(Indian Institute of Bankers)

Expertise in specific functional areas :

Forex Business, Restructuring of Accounts including handling of CDR, Effective participation in consortium meetings, Statutory and RBI audit and Credit Audit.

Date of Appointment :

19.05.2017

DIN No.:

07825119

KEY EXECUTIVES

Name :	Mr. Ashwini Patel
Designation :	Deputy General Manager in Finance
Name :	Mr. Akhilesh Maru
Designation :	Chief Finance Officer
Address :	B-708, Dheeraj Valley, Build No - 2 Near Oberai International School, Gorega on, Mumbai - 400063, Maharashtra, India
Date of Appointment :	15.05.2014
DIN No.:	AFYPM0549R
Name :	Mr. Ravi Patidar
Designation :	Company Secretary
Address :	26, Raghuvanshi Colony, Indore – 452001, Madhya Pradesh, India
Date of Appointment :	25.10.2016
PAN No.:	AQHPP4347G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on September 2017

Category of shareholder	No. of fully paid up equity shares held	Shareholding as a % of total no. of shares
(A) Promoter & Promoter Group	8747188	47.59
(B) Public	9632968	52.41
Grand Total	18380156	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

Category of shareholder	No. of fully paid up equity shares held	Shareholding as a % of total no. of shares
A1) Indian		0.00
Individuals/Hindu undivided Family	8349688	45.43
AISHWARYA PATIDAR	385400	2.10
ANKIT PATIDAR	1500000	8.16
GEETA PATIDAR	610800	3.32
INDIRA PATIDAR	334000	1.82
PALLAVI PATIDAR	341800	1.86
SEEMA PATIDAR	94000	0.51
DINESH PATIDAR	3521488	19.16
SUNIL PATIDAR	1562200	8.50
Any Other (specify)	397500	2.16
Vintex Tools Private Limited	397500	2.16
Sub Total A1	8747188	47.59
A2) Foreign		0.00
A=A1+A2	8747188	47.59

Statement showing shareholding pattern of the Public shareholder

Category & Name of the Shareholders	No. of fully paid up equity shares held	Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)
B1) Institutions	0	0.00
Mutual Funds/	4500	0.02
Financial Institutions/ Banks	69488	0.38
Sub Total B1	73988	0.40
B2) Central Government/ State Government(s)/ President of India	0	0.00
B3) Non-Institutions	0	0.00
Individual share capital upto INR 0.200 Million	3425713	18.64
Individual share capital in excess of INR 0.200 Million	999282	5.44
SNEHAL BHUPENDRA SHAH	360000	1.96
Any Other (specify)	5133985	27.93
Bodies Corporate	2961265	16.11
RAJAL SECURITIES PRIVATE LIMITED	463400	2.52
VINAY SECURITIES PRIVATE LIMITED	363000	1.97
M L SECURITIES AND FINANCE PVT LTD	1189491	6.47
Clearing Members	39460	0.21
NRI	322010	1.75
Overseas corporate bodies	1641092	8.93
AFHoldings	1636363	8.90
Trusts	165085	0.90
Corporate Body- Broker	5073	0.03
Sub Total B3	9558980	52.01
B=B1+B2+B3	9632968	52.41

BUSINESS DETAILS

Line of Business :

The Subject is mainly engaged in the business of manufacturing various types of Pumps and Motors. (Registered activity)

Products :

Item Code No.	Product Description
28132	Manufacturing Pumps and Motors

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

• EICHER
• TATA
• Cipla
• GVK
• Lanco
• Raymond
• MAN
• Sayaji
• Jindal Steel and Power
• Mahindra 2 Wheelers
• HBL

Reference :	DS Group
Name of the Person :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark:	--

No. of Employees :

580 (Approximately)

Bankers :

Bank Name	HDFC Bank Limited
Branch	Brilliant Ave Scheme No. 94, Behind Bombay Hospital, Ring Road, Indore-452010, Madhya Pradesh, India
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

• State Bank of India - Commercial Branch, Near GPO, Indore-452001, Madhya Pradesh, India

• Axis Bank Limited - Mcmc1, Kamal Palace, Y.N. Road, Indore-452001, Madhya Pradesh, India

• Standard Chartered Bank - 23, Narain Manzil Barakhamba Road, Delhi-110001, India

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Term Loan From Banks:
Rupee Loan	56.000	25.013
Foreign Currency Loan	0.000	20.000
Vehicle Loan	0.000	1.476
Short-term borrowings
Working Capital Loans From Banks :
Rupee Loan	249.960	406.159
Packing Credit Limit	314.999	417.760
Total	620.959	870.408

Auditors :
Name :	Modi Manoj and Company Chartered Accountants
Address :	239, Satra Plaza, Sector – 16D, Palm Beacg Road, Navi Mumbai – 400703, Maharashtra, India
Mobile No.:	91-9022059201
E-Mail :	Manojodi1989@gmail.com
Memberships :	Not Available
Collaborators :	Not Available
Wholly Owned Subsidiary Companies	Shakti Pumps LLC, USA Shakti Pumps FZE , UAE Shakti Pumps Pty Limited. Australia
Enterprise over Which Key management are able to exercise significant influence :	Shakti Irrigation India Limited Arsh Industrial Solutions Private Limited Shakti Irrigation Private Limited Vintex Tools Private Limited Shakti Energy Solutions Private Limited

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	INR 10/- each	INR 250.000 Million
1500000	15 % Compulsory Convertible Preference Shares of 100/- each	INR 100/- each	INR 150.000 Million
	Total		INR 400.000 Million

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
18560356	Equity Shares	INR 10/- each	INR 185.603 Million

Paid-up Capital :

No. of Shares	Type	Value	Amount
18380156	Equity Shares	INR 10/- each	INR 183.802 Million

b) Reconciliation of the number of shares outstanding at the beginning and the end of the reporting period:

	31.03.2017
	No. of Shares held
Equity Shares of INR 10 At the beginning of the period	167437933
Issued during the period	1636363
Outstanding at the end of the period	18380156

1,80,200 Shares out of Issued Share are forfieted by the company which has not been reissued.

The details of shareholders holding more than 5% Shares :

Name of Shareholders	31.03.2017
	No. of Shares held	% of Holding
Dinesh Patidar	3521488	21.03%
Ankit Patidar	1500000	8.96%
Sunil Patidar	1562200	8.50%
M.L.Securities and Finance Private Limited	1771829	9.64%
AF Holdings	1636363	8.90%

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	183.802	317.438	317.438
(b) Reserves & Surplus	2032.936	1733.203	1776.719
(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)	2216.738	2050.641	2094.157
(3) Non-Current Liabilities
(a) long-term borrowings	56.000	46.489	165.776
(b) Deferred tax liabilities (Net)	84.413	69.709	62.555
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	38.721	13.192	0.000
Total Non-current Liabilities (3)	179.134	129.390	228.331
(4) Current Liabilities
(a) Short term borrowings	758.193	823.919	704.250
(b) Trade payables	544.251	237.396	265.414
(c) Other current liabilities	328.415	322.273	238.389
(d) Short-term provisions	166.927	101.919	187.470
Total Current Liabilities (4)	1797.786	1485.507	1395.523
TOTAL	4193.658	3665.538	3718.011
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1212.004	1100.921	1059.722
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	82.014	46.101
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	20.480	6.271	6.271
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	83.165	103.569	102.486
(e) Other Non-current assets	35.327	275.585	198.344
Total Non-Current Assets	1350.976	1568.360	1412.924
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	853.436	840.512	824.222
(c) Trade receivables	1560.508	942.436	1165.493
(d) Cash and cash equivalents	103.897	62.569	65.761
(e) Short-term loans and advances	324.841	251.661	249.611
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2842.682	2097.178	2305.087
TOTAL	4193.658	3665.538	3718.011

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	4049.285	2638.479	2985.231
	Other Income	67.909	83.743	114.519
	TOTAL	4117.194	2722.222	3099.750
Less	EXPENSES
	Cost of Materials Consumed	2250.926	1519.702	1476.081
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	31.261	(118.873)	(108.615)
	Employees benefits expense	414.113	410.358	346.678
	Other expenses	820.024	616.065	805.458
	TOTAL	3516.324	2427.252	2519.602
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	600.870	294.970	580.148
Less	FINANCIAL EXPENSES	159.600	140.060	131.665
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	441.270	154.910	448.483
Less/ Add	DEPRECIATION/ AMORTISATION	127.980	120.625	98.236
	PROFIT/ (LOSS) BEFORE TAX	313.290	34.285	350.247
Less	TAX	100.074	14.534	93.044
	PROFIT/ (LOSS) AFTER TAX	213.216	19.751	257.203
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	4.100	0.000	0.000
Less	APPROPRIATIONS
	Transfer to General Reserve	0.000	0.000	195.572
	Proposed Dividend	36.760	0.000	33.488
	Dividend on CCPS	2.712	0.000	8.445
	Dividend Tax	7.483	9.694	8.386
	Dividend Tax (CCPS)	0.552	0.000	0.000
	CSR Expenditure	0.000	0.000	4.806
	Interest on Dividend Tax	0.000	0.335	0.000
	Interest on Income Tax	0.000	0.866	-0.204
	Excess/(Short) Provision of Income Tax	(0.389)	4.756	6.710
	Total (M)	47.118	15.651	257.203
	Balance Carried to the B/S	170.198	4.100	0.000
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	979.575	1087.234	1327.868
	TOTAL EARNINGS	979.575	1087.234	1327.868
	IMPORTS
	Raw Materials	418.978	276.461	511.231
	Capital Goods	29.190	11.402	6.259
	TOTAL IMPORTS	448.168	287.863	517.490
	Earnings / (Loss) Per Share (INR)	11.71	1.18	16.43

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	62.412	151.563	151.419
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	576.838	340.379	(43.106)

QUARTERLY RESULTS

Particulars	30.06.2017	30.09.2017	31.21.2017
Audited / Unaudited	Unaudited	Unaudited	Unaudited
	1^ST Quarter	2^nd Quarter	3^rd Quarter
Net Sales	861.080	632.470	1414.860
Total Expenditure	754.640	548.350	1129.280
PBIDT (Excl OI)	106.440	84.120	285.580
Other Income	2.860	5.540	9.960
Operating Profit	109.300	89.650	295.530
Interest	30.540	28.920	34.390
Exceptional Items	NA	NA	NA
PBDT	78.760	60.730	261.140
Depreciation	34.070	35.020	35.510
Profit Before Tax	44.690	25.710	225.630
Tax	14.850	15.900	72.570
Provisions and contingencies	NA	NA	NA
Profit After Tax	29.840	9.810	153.060
Extraordinary Items	NA	NA	NA
Prior Period Expenses	NA	NA	NA
Other Adjustments	NA	NA	NA
Net Profit	29.840	9.810	153.060

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	140.66	130.37	142.50
Account Receivables Turnover (Income / Sundry Debtors)	2.59	2.80	2.56
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	88.25	57.02	65.63
Inventory Turnover (Operating Income / Inventories)	0.70	0.35	0.70
Asset Turnover (Operating Income / Net Fixed Assets)	0.50	0.25	0.52

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.46	0.46	0.46
Debt Equity Ratio (Total Liability / Networth)	0.40	0.50	0.49
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.81	0.72	0.67
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.55	0.58	0.53
Interest Coverage Ratio (PBIT / Financial Charges)	3.76	2.11	4.41

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	5.27	0.75	8.62
Return on Total Assets ((PAT / Total Assets) * 100)	%	5.08	0.54	6.92
Return on Investment (ROI) ((PAT / Networth) * 100)	%	9.62	0.96	12.28

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.58	1.41	1.65
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.11	0.85	1.06
G-Score Ratio Financial (Networth / Total Assets)	0.53	0.56	0.56
G-Score Ratio Debt (Debts / Equity Capital)	4.77	3.22	3.22
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.58	1.41	1.65

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	INR 10.00/-
Market Value	INR 540.20/-

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	317.438	317.438	183.802
Reserves & Surplus	1776.719	1733.203	2032.936
Net worth	2094.157	2050.641	2216.738
Long Term borrowings	165.776	46.489	56.000
Short Term borrowings	704.250	823.919	758.193
Current Maturities of Long term debt	151.419	151.563	62.412
Total borrowings	1021.445	1021.971	876.605
Debt/Equity ratio	0.488	0.498	0.395

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	2985.231	2638.479	4049.285
		(11.616)	53.470

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	2985.231	2638.479	4049.285
Profit	257.203	19.751	213.216
	8.62%	0.75%	5.27%

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2017	31.03.2016
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	183.801	317.438
(b) Reserves & Surplus	1999.924	1701.719
(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)	2183.725	2019.157
(3) Non-Current Liabilities
(a) long-term borrowings	70.981	64.782
(b) Deferred tax liabilities (Net)	84.413	69.709
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	38.721	13.192
Total Non-current Liabilities (3)	194.115	147.683
(4) Current Liabilities
(a) Short term borrowings	758.193	823.919
(b) Trade payables	544.826	244.851
(c) Other current liabilities	340.488	326.521
(d) Short-term provisions	179.293	101.919
Total Current Liabilities (4)	1822.800	1497.210
TOTAL	4200.640	3664.050
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1212.004	1100.921
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	82.014
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.002	0.002
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	83.165	103.569
(e) Other Non-current assets	35.327	275.585
Total Non-Current Assets	1330.498	1562.091
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1029.229	1080.052
(c) Trade receivables	1383.961	694.128
(d) Cash and cash equivalents	132.040	76.045
(e) Short-term loans and advances	324.912	251.734
(f) Other current assets	0.000	0.000
Total Current Assets	2870.142	2101.959
TOTAL	4200.640	3664.050

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	4245.770	2642.274
	Other Income	70.437	87.735
	TOTAL	4316.207	2730.009
Less	EXPENSES
	Cost of Materials Consumed	2253.445	1576.513
	Purchases of Stock-in-Trade	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	95.009	(272.496)
	Employees benefits expense	426.835	420.172
	Other expenses	930.279	716.819
	TOTAL	3705.568	2441.008
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	610.639	289.001
Less	FINANCIAL EXPENSES	164.323	143.179
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	446.316	145.822
Less/ Add	DEPRECIATION/ AMORTISATION	127.980	120.625
	PROFIT/ (LOSS) BEFORE TAX	318.336	25.197
Less	TAX	112.919	14.534
	PROFIT/ (LOSS) AFTER TAX	205.417	10.663
	Earnings / (Loss) Per Share (INR)	11.28	0.64

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	Yes
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	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

FINANCIAL PERFORMANCE

During the year, the Company has registered sales and other income of INR 4117.194 Million as compared to INR 2722.222 Million of previous year showing an increase in sales by 51.21%. The Company was able to register Million in domestic sales by 98.71% i.e. INR 3155.257 Million in current year as compared to INR 1587.934 lacs in previous year and decrease in export sales by 12.82% i.e. INR 979.575 Million in current year as compared to INR 1123.695 Million in previous financial year. The Company earned profit before depreciation, interest and tax of INR 600.870 Million as against INR 294.970 Million in previous year.

BACKGROUND

Having commenced operations in 1982, Shakti Pumps is now one of India’s most reputed manufacturers of energy efficient submersible pumps. With a manufacturing capacity of 5,00,000 pumps per annum, the Company services the needs of agricultural, industrial, domestic and horticultural sectors.

Shakti Pumps is a pioneer in the manufacture of energy-efficient stainless steel pumps and motors. State-of-the-art technology, high-tech processes and innovative designs have allowed Shakti Pumps to carve a niche for itself in the market and emerge as a globally-competitive manufacturer.

Shakti Pumps is committed to achieve total customer satisfaction by manufacturing high quality pumps, meeting global benchmarks, providing timely supply and excellent services through team work and continual improvement.

OVERVIEW

In view of the convergence of these realities, we believe that the Company is poised to significantly benefit from the increased installations of solar pumps in the Country apart from expanding its reach in the area of industrial pumps, exports and the energy efficient conventional agricultural pump segments. This has already begun to manifest in capital assets that enhance sectoral viability, convenience and national savings.

With the Indian government focused on modernising agriculture, while investing in Smart Cities, road infrastructure, drinking water and urbanisation, we can be safely assured of the prospects of energy-efficient pumps resulting in attractive corporate prospects the Company appear attractive across the foreseeable future.

MANAGEMENT DISCUSSION AND ANALYSIS

Global economic overview

Buoyant financial markets, combined with a long-awaited recovery in manufacturing and trade, is expected to result in higher global growth from 3.2% in 2016 to 3.5% in 2017 and 3.6% in 2018. The previous financial year was marked by a number of changes such as the Brexit, the Presidential election in USA, stable oil prices, geo-political tension across countries and China’s slowdown. The sluggish growth in developing economies was largely characterised by commodity and oil price declines, overhangs global financial crisis and political turmoil. While Asia in general and India in particular continued to grow, several emerging market currencies devalued considerably. However, advanced economies like US and Japan, with their extended monetary support policy and return to fiscal neutrality, fortified a generally-quickening output. However, the overall forecast masks a marked difference between countries with strong commodity import-export ratios.

After stagnating in 2015, growth in commodity-exporting nations for 2016 was pegged at 0.4% – substantially below the forecasted 1.6% (January 2016). This reflects a significant downward revision in terms of commodity prices spurred by weak global trade, capital flow volatilities and inherent domestic challenges. With China reorienting into a consumption-centric economy and Gulf nations reducing their dependence on oil, the case for base metals strengthened. This, in turn, propped commodity prices. Consequently, inflation recovered across advanced economies and commodity prices bottomed out (Source: IMF and World Bank).

However, businesses will need to prepare themselves adequately in order to address the challenges arising from geopolitical tensions, policy uncertainties, financial market volatilities and rapid changes in technology. They would be able to do so by leveraging qualitative sources of growth, boosting their technology quotient and productivity.

Indian economic overview

The Indian economy slowed in 2016-17 to 7.1% from 8% in FY2015- 16, largely owing to the currency demonetisation in the third quarter of the financial year. Although the demonetization initiative affected growth, it is expected to have major long-term benefits. Further, the recently-introduced Goods and Services Tax (GST) is also significantly advantageous in the long-term as it will boost interstate trade, reduce supply chain-related issues, improve economies-of-scale, overheads. The cost of doing business for the unorganised segment will increase. Over the last few years, India’s growth performance and moderate robust, backed by policy reforms that have made India more open to goods and capital flows. However, the country is witnessing challenges with respect to infrastructure development, slower private sector capex, high non- performing assets, poor financials of state discoms and job creation. The growth rate of the industrial sector was estimated to moderate to 5.2% in FY 2017, down from 7.4% in FY 2016. With an anticipated normal rainfall, the rural sector demand is expected to be strong this year after two years of poor monsoons. This should lift sagging rural demand and, by extension, the GDP growth rate. (Source: Crisil, HT)

The near-term outlook for India seems brighter. Nonetheless, the growth forecast for the next fiscal has been pegged around 7.2%, primarily due to the temporary cash shortages and payment disruptions associated with demonetisations and GST implementation. The Asian Development Bank expects the Indian economy to grow at an accelerated 7.4% in 2017-18 and 7.6% in 2018-19, retaining its position as the world’s fastest-growing major economy. (Source: IMF, World Bank, RBI, IBEF)

Global pumps

The global pump market is projected to register a compounded annual growth rate (CAGR) of 4.6% in terms of revenue and 4.2% in terms of sales volume between 2016, according to a new report titled ‘Pumps Market: Global Industry Analysis and Forecast, 2016–2024,’ by Persistence Market Research.

Key growth drivers

• Government regulations
• Pharmaceutical demand
• Growing need for water treatment and wastewater management
• Oil and gas expansion

The global pumps market is segregated across the five key regions of North America, Latin America, Europe, APAC and the Middle East and Africa. The APAC region is estimated to dominate the global pumps market with 38.5% revenue share by end 2016. Sales of pumps in the North America and Europe regions is estimated to collectively account for 48.8% share by end 2016.

Global demand to grow 5.5% yearly through 2018

Global demand for fluid handling pumps is projected to increase 5.5% per year to $84 billion in 2018. In developed nations, an improved environment for fixed investment spending will enable pump-using manufacturers to invest in expansion and an upgrade of facilities. In developing areas, increased investment in water infrastructure will spur gains as access to water supply and sanitation systems is expanded. Continued growth in mining activity, a byproduct of the voracious demand for mined materials in China, India, and other developing nations, could boost pump demand in countries with large mining industries. Growth in oil production could also provide opportunities, especially in newly developed areas requiring infrastructure development.

China, Asia/Pacific region to lead new pump demand

The Asia/Pacific region will generate 44% of new pump demand through 2018. Pump sales in the region will be based on solid advances in fixed investment expenditures and construction spending. Several Asian countries are projected to record impressive gains, including China and India. China alone will account for 23% of all new global pump demand between 2013 and 2018. On a regional basis, Central and South America are expected to post the strongest annual gains, benefiting from ongoing industrialisation. The US will remain the largest national market through 2018, due to its large process manufacturing industries, water infrastructure, and oil and gas industries.

Higher incomes in developing regions to benefit process manufacturing

Pump demand in the process manufacturing market will benefit from greater standards of living, particularly in developing regions. As consumers earn better incomes, they will spend more on goods such as fuel, chemicals, and food and beverages. Advances in pump demand in the water infrastructure market could result from two key factors: in developing nations, access to water supply and sanitation could be increase; in developed nations, aging water infrastructure could need repair and upgrades. Demand in the oil and gas market will benefit from more oil and gas production worldwide, though this may be tempered in the short-term by a sharp decline in oil prices.

Indian pumps

The pump market in India was valued at about ~H10000 to 11000 crore in FY2016-17, Submersible and centrifugal pumps accounted for 95% of the pumps sold in India. The market for water pumps in India is expected to witness rapid growth at a CAGR of ~12% till 2020.

Key drivers:

• Government regulations
• Government Agriculture spending
• Growing need for water treatment and wastewater management
• Urbanisation, Smart Cities etc.
• Solar pumps

This growth could be driven by increasing urbanisation, leading to high demand for residential and commercial real estate. Growing dependence on groundwater and irregular monsoons are catalysing the demand for water pumps in the agricultural segment. Governmental efforts to improve water infrastructure, water supply and sanitation services across the country are expected to catalyse the demand for water pumps in the country.

The increase in consumption, rise in agriculture exports, growth in the food processing industry, and growth in organic farming could result in the growth of the agriculture sector, which could subsequently increase the demand for pumps. Additionally, the expected investments from the government towards irrigation projects could also drive demand.

Besides agriculture, a significant share to the country’s water pumps market is accounted for by the industrial sector, where power plants, chemical manufacturing, water and wastewater treatment are the prime application areas.

Rapid penetration of desalination plants in the industrial sector is boosting the demand for water pumps. Many desalination plants announced in the past are likely to be launched in the country over the next few years. The demand for desalinated water has been exacerbated by depleting per capita water availability, motivating the Indian Government to explore alternative sources.

Over the years, the Governments at the Central and the State level have been working to provide the right financing mechanism for solar pumps considering the high upfront costs of pumps. However, given the lack of electricity and high costs of setting up a transmission and distribution network, the Governments have come out with a feasible financing solution. This is expected to significantly increase the demand for solar pumps in the near future.

Company’s performance, 2016-17

After a year of slowdown, Shakti Pumps’ performance in 2016-17 turned around on the back of strong domestic solar sales. The Indian market showed improvement during the year under review owing to clear government policies and better implementation. However, the unprecedented demonetisation drive of the government slowed the domestic agriculture and residential demand. Shakti Pumps continued to strengthen its network by adding good dealers and consultants during the year.

Exports

Exports were affected in the past few years owing to the Company’s prominent markets (Gulf region) facing a geo-political crisis. The Company worked on the exports policy, started entering newer markets and building its distribution channel. This was reflected positively on the ground as the Company associated with good dealers and consultants. During the year, the Company added 11 international dealers in more than six countries. Exports revenue was INR 980.000 Million in 2016-17 compared to INR 1120.000 Million in 2015-16.

Domestic market

The domestic business revenue increased by 99% to INR 3150.000 Million from INR 1580.000 Million in 2015-16. The increase in revenue was driven by mainly by the solar pumps businesses.

During the year, the Company improved its market penetration through changes in dealer policy, entry in new markets and empanelment with industry experts.

Agriculture business

After two consecutive poor monsoons the year saw a revival in the monsoon but due to demonetisation, revival in demand was postponed by a few months.

Industrial

During the year, the Company was in the process to be empaneled with major corporate consumer through dealers and consultants. The government initiatives like Swachh Bharat, Smart Cities and wastewater management, along with revival in the infrastructure segment, are expected to drive growth in the sector.

Solar

The solar pump started showing positive traction captured by the government’s effort I prompting solar pumps. Over and above, Projects like International Solar Alliance are expected to drive demand in the coming years.

UNSECURED LOAN

Unsecured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Short-term borrowings
From Banks Rupee Loan	193.234	0.000
Total	193.234	0.000

INDEX OF CHARGES:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G34791269	100034436	HDFC BANK LIMITED	31/03/2016	06/01/2017	-	370000000.0	HDFC BANK HOUSE SENAPATI BAPAT MARGLOWER PAREL (W)MUMBAIMH400013IN
2	G45998960	10372844	State Bank of India	31/07/2012	19/05/2017	-	2161100000.0	Commercial BranchNear GPO, A.B. RoadIndoreMP452001IN
3	G69035335	10335669	Axis Bank Limited	19/01/2012	10/10/2017	-	555000000.0	MCMC1, KAMAL PALACE Y.N. ROADIndoreMP452001IN
4	C34704965	10011394	State Bank of India	15/07/2006	29/10/2014	-	1132500000.0	COMMERCIAL BRANCHNEAR G.P.O., A.B.ROADINDOREMP452001IN
5	G33608381	10335726	Standard Chartered Bank	26/12/2011	04/10/2012	09/01/2017	200000000.0	Narain Manzil, 23Barakhamba RoadDehliDL110001IN
6	G05155569	10364084	Standard Chartered Bank	31/05/2012	28/04/2015	01/06/2016	300000000.0	23, Narain ManzilBarakhamba RoadDelhiDL110001IN
7	B38056875	10051996	MADHYA PRADESH FINANCIAL CORPORATION INDORE	30/03/2007	-	30/04/2012	75000000.0	HEAD OFFICE FINANCE HOUSE BOMBAY AGRA ROAD INDOREINDOREMP452001IN
8	B37817335	10213311	Barclays Bank Plc	29/03/2010	26/05/2010	11/04/2012	207000000.0	601/603, Ceejay House, Shivsagar Estate,Dr. Annie Besant Road, Worli,MumbaiMH400018IN
9	A03354818	80009414	STATE BANK OF INDORE	20/02/2004	-	12/08/2006	246250000.0	PITHAMPUR BRANCHPITHAMPURMP454775IN
10	A03354578	80009425	STATE BANK OF INDORE	27/07/2002	-	12/08/2006	15000000.0	PITHAMPUR BRANCHDISTT. DHARPITHAMPURMP454775IN

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31TH DECEMBER 2017

		Particulars	quarter ended	quarter ended	Nine months ended
			31.12.2017	30.09.2017	31.12.2017
1		Income from Operations
		Sales/Income from Operations (Gross)	1414.005	625.047	2868.168
		Other Operating Income	0.851	7.418	19.393
		Other Income	9.955	5.542	18.352
	Total Income from Operations (Net)		1424.811	638.007	2905.914
2	Expenses
	a)	Cost of Materials consumed	801.622	349.413	1673.880
	b)	Purchase of Stock-in-trade	--	--	--
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	31.243	(16.362)	(57.114)
	d)	Employee benefit expenses	109.667	105.851	322.595
	e)	Finance Cost	34.387	28.923	93.845
	f)	Depreciation and amortization expense	35.511	35.020	104.599
	g)	Other expenses	186.756	109.449	472.076
	Total Expenses		1199.185	612.294	2609.882
	Profit /(Loss) from ordinary activities after finance costs but before exceptional items		225.626	25.714	296.031
	Exceptional Items		--	--	--
	Profit /(Loss) from ordinary activities before tax		225.626	25.714	296.031
	Tax Expense
	- Current Tax		64.847	7.932	88.245
	- Differed Tax		7.722	7.973	15.080
	Net Profit /(Loss) from ordinary activities after tax		153.057	9.809	192.706
	Other Comprehensive Income		1.804	2.309	2.176
	Total Other Comprehensive Income for the period		1548.61	12.116	194.882
	Paid up equity share capital (Eq. shares of INR 10/- each)		183.802	183.802	183.802
	Reserve excluding revaluation reserves
		Earnings per share (before/after extraordinary items) of INR 10/- each
		Basic & Diluted	8.33	0.53	10.48

Note:

1. The figures for the corresponding previous quarter and nine months ended have been restated / regrouped whenever necessary, to make them comparable.
2. First time adoption of Ind AS: The Company adopted Indian Accounting Standards ("Ind AS") from 01st April 2017 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in Ind AS 34 ‘Interim Financial Reporting' prescribed under Section 133 of the Companies Act,2013 read with the relevant rules Issued there under and the other accounting principles generally accepted in India.

3. Reconciliation between financial results, as previously reported and as restated under Ind-AS are as under:

S. No.:	Particulars	Nine months ended 31.12.2017
	Net profit per India GAAP	103.791
a.	Borrowing at Amortised Cost	(3.345)
b.	Remeasurement (Gain / Loss) on Defined Plans	(0.720)
c.	Unrealised (Gain / Loss) impact	6.469
d.	Deferred Tax	0.691
	Net Profit before other Comprehensive Income as per Ind AS	106.886
e.	Other Comprehensive Income (After Tax)	(5.749)
	Total Comprehensive Income (after tax)	101.137

4. The Company has only one operating segment namely, “Pump & Motors"

5. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 29th January 2018. The Auditors of the Company have carried out a 'Limited Review' of the result for the quarter and nine months ended on 31st December 2017 only. The results for the quarter and nine month ended 31st December 2016 have not been subjected to limited review or audit. However, the management has exercised necessary due diligence to ensure that the financial results for the quarter and nine months ended 31st December 2016 provide a true and fair review of the Company's affairs.

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Bank Guarantee Outstanding	179.500	35.739
Unexpired Letter of Credit	360.500	112.927
Excise Demand Under Dispute	4.800	4.770
Commercial Tax Demand under Dispute	10.500	10.044
Income Tax Demand Under Dispute	0.000	27.218

FIXED ASSETS

- Computers

- Equipments

- Office Buildings

- Factory Buildings

- Furniture

- Land

- Plant & Machinery

- Tools

- 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 records 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	INR
US Dollar	1	INR 65.19
UK Pound	1	INR 91.49
Euro	1	INR 80.46

INFORMATION DETAILS

Analysis Done by :	NSR
Report Prepared by :	SUJ

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.