MIRA INFORM REPORT

Report Date :

01.12.2008

IDENTIFICATION DETAILS

Name :	AIRTECH PRIVATE LIMITED
Registered Office :	5^th KM, NH-4 Village, Narendra, Dharwad – 580 005, Karnataka.
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	11.12.1979
Com. Reg. No.:	08 – 3680
CIN No.: [Company Identification No.]	U29192KA1979PTC003680
TAN No.: [Tax Deduction & Collection Account No.]	BLRA02765A
Legal Form :	Private limited Liability Company
Line of Business :	Manufacturer of Parts, Accessories and Attachments for Machines Tools such as Chucks, Mechanical or Pneumatic, Power Chucks, Hydraulic Chucking Cylinders.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 14385
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	5^th K M, National Highway No.4, Village Narendra, Dharwad – 580 005, Karnataka, India.
Tel. No.:	91-836-2780053 / 2780080
Fax No.:	91-836-2780095
E-Mail :	enquiry@aaairtechindia.com airtech.dharwad@gmail.com

DIRECTORS

Name :	Mr.lajpatrai Ramlal Sukhija
Designation :	Managing Director
Address :	Second Cross, Saptapur, Dharwad – 580 001, Karnataka, India.
Date of Birth/Age :	01.09.1937
Identity No :	KT 24 175 351423
Din No :	00137432
Date of Appointment :	11.12.1979
Name :	Mrs.Renu Anil Madan
Designation :	Director
Address :	Flat No.309, Bharat Golf View Apartments, 5^th Cross Rustumbagh Airport Road, Bangalore – 560 017, Karnataka, India.
Date of Birth/Age :	09.05.1971
Din No :	00472550
Date of Appointment :	20.03.2005
Name :	Mrs.Sapna Rohit Seth
Designation :	Director
Address :	603, Omkar Towers, Plot No 18, Tikekar Road, Dhantoli, Nagpur – 440 012, Maharashtra, India.
Date of Birth/Age :	19.05.1974
Din No :	00137663
Date of Appointment :	20.03.2005
Name :	Mr.Rohit Rajesh Seth
Designation :	Director
Address :	603, Omkar Towers, Plot No.18, Tikekar Road, Dhantoli, Nagpur – 440 012, Maharashtra, India.
Date of Birth/Age :	20.01.1975
Din No :	00137719
Date of Appointment :	20.03.2005
Name :	Mr.Lopa Vikrant Saigal
Designation :	Director
Address :	505, Sri Sai Avenue LIC Colony, Sri Nagar, Hyderabad – 500 073, Andhra Pradesh.
Date of Birth/Age :	03.09.1977
Din No :	00195805
Date of Appointment :	20.03.2005
Name :	Mr.Sudhindra Bhimasena Rao
Designation :	Director
Address :	6/1, 8^th Main Road, Malleshwaram, Bangalore – 560 003, Karnataka.
Date of Birth/Age :	26.12.1935
Din No :	00137903
Identity Card No :	KT 24 175 306245
Date of Appointment :	25.03.1995
Name :	Mr.Visvanath Kuppuswamy Swamy
Designation :	Director
Address :	4, Basant Gardens, Opp.Maitri Park, V.N.Purav Road, Chembur, Mumbai – 400 071, Maharashtra, India.
Date of Birth/Age :	17.09.1933
Din No :	00416599
Identity Card No :	MT 07 046 0391214
Date of Appointment :	25.03.1995
Name :	Mr.Panthangi Sreeramulu Gopal Krishn Murthy
Designation :	Director
Address :	Venkateshwara No.8, Chinnswamy Mudaliar Road, Bangalore – 560 051, Karnataka.
Date of Birth/Age :	13.01.1936
Din No :	00137800
Identity Card No :	KT 12 085 207363
Date of Appointment :	13.12.1987
Name :	Mr.Suresh Anant Phalnikar
Designation :	Director
Address :	Ashish, 61 A/8, Erandawana, Pune – 411 004, Maharashtra, India.
Date of Birth/Age :	11.03.1934
Din No :	00138172
Identity Card No :	MT 0042 024736321
Date of Appointment :	28.03.1998
Name :	Mr.Madhav Dhume
Designation :	Director
Address :	301 C, Daiseylea, Malabarhill, Mumbai – 400 006, Maharashtra, India.
Date of Birth/Age :	25.05.1948
Date of Appointment :	14.08.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON (28.09.2007)

Names of Shareholders	No. of Shares
Mr.Suresh Phalnikar	218
Mrs.Radhika Dhume	312
Mrs.Neena Phalnikar	120
Mrs.Sunetra Summannavar	108
Mr.Vatsala Rao	252
Mr.Lajapatrai Sukhija	55
Mrs.Renu Sukhija	691
Mrs.Sapna Sukhija	691
Mr.Lopa Sukhija	691
Mr.Anil Madan	99
Mr.Rohit Seth	99
Mr.Vikrant Saigal	99
Mr.Visavnath Swamy	85
Mr.Ratna Swamy	178
Mr.P.G.K. Murthy	115
Mr.P.G. Murthy	159
Mrs.Usha Sukhija	285
Mr.Sudhindrarao M B	85
Mr.Madhav Dhume	83
Mr.Sridhar swamy	57
Mr.Hema Srinivasan	18

Equity Share Breakup	Percentage of Holding
Category (31.03.2007)
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Parts, Accessories and Attachments for Machines Tools such as Chucks, Mechanical or Pneumatic, Power Chucks, Hydraulic Chucking Cylinders.
Exports :
Countries :	Australia South Africa United Kingdom
Imports :
Countries :	Japan Singapore

GENERAL INFORMATION

No. of Employees :

Around 75

Bankers :

State Bank of India, Dharwad Main Branch, College Road, Dharwad – 580 001, Karnataka, India.

Facilities :

PARTICULAR	31.03.2008 Rs (in Million)
(A) SECURED LOAN – Medium term loan from
1) State Bank of India DWD A/C No.10943617675 State Bank of India DWD A/C No.10943617653 State Bank of India DWD A/C No.10943671664 (Secured by hypothecation of all machineries/equipments equitable mortgage of land and building and personal guarantee of all directors)	4.468 6.170 0.305
2) Cash Credit loan from State Bank of India, Dharwad (Secured by hypothecation of raw material, stock in process finished goods, receivables, machinery and equitable mortgage of land and building and personal guarantee of all directors)	0.667
Total	11.610
(B) UNSECURED LOAN
Fixed deposit from members Directors and their relatives	1.630
Total	1.630
Grand Total	13.240

Banking Relations :	Satisfactory
Auditors :	Basavaraj M Balageri
	Chartered Accountant
Address :	H.No.3, 9^th Cross, Madhura Chetana Colony, Keshwapur, Hubli – 580 023, Karnataka, India.
Pan No.:	ABVPM0942R
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

AS ON

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 100/- Each	1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs. 100/- Each	1.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		1.500	0.450	0.450
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.271	23.524	16.152
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.771	23.974	16.602
LOAN FUNDS
1] Secured Loans		11.613	14.494	16.370
2] Unsecured Loans		1.630	1.240	2.190
TOTAL BORROWING		13.243	15.734	18.560
DEFERRED TAX LIABILITIES		0.251	0.099	0.063
TOTAL		42.265	39.807
				35.225
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.542	17.202	19.531
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.767	10.883	9.388
	Sundry Debtors	20.992	28.712	14.594
	Cash & Bank Balances	0.490	0.461	0.130
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.432	1.341	1.122
Total Current Assets		39.681	41.397	25.234
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	13.676	17.703	8.418
	Provisions	0.282	1.089	1.122
Total Current Liabilities		13.958	18.792	9.540
Net Current Assets		25.723	22.605	15.694
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		42.265	39.807	35.225

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2008	31.03.2007
Sales Turnover	66.636	68.075
Other Income	0.000	0.000
Total Income	66.636	68.075
Profit/(Loss) Before Tax	6.373	11.884
Provision for Taxation	2.451	4.423
Profit/(Loss) After Tax	3.922	7.461
Total Expenditure	60.263	56.191

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	5.8	10.9	NA
Net Profit Margin (PBT/Sales)	(%)	9.5	17.4	NA
Return on Total Assets (PBT/Total Assets}	(%)	11.3	20.3	NA
Return on Investment (ROI) (PBT/Networth)		0.22	0.5	NA
Debt Equity Ratio (Total Liability/Networth)		0.5	0.8	0.6
Current Ratio (Current Asset/Current Liability)		2.8	2.2	2.6

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS:

Ø Land

Ø Building

Ø Plant and Machinery

Ø Electrical Installations

Ø Furnitures

Ø Office Equipment

Ø Vehicles

Ø Cars

Ø Computers

Ø Capital Work In Progress

Name of the company	AIRTECH PRIVATE LIMITED
Presented By	State Bank of India, Dharwad Branch, College Road, Dharwad – 580 001, Karnataka, India.
1) Date and description of instrument creating the change	a. General Agreement for the grant of medium term advances to SSI and hyp. Of movables, Book debts and other aseets. b. Agreement of hypothecation (Both documents relate to single charge)
2) Amount secured by the charge/amount owing on the securities of charge	Rs.1.500 millions (MTL)
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of CNC vertical milling machine with accessories and existing plant and machineries as per list enclosed belonging to the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @13.25%p.a. margin 47% Repayable in 60 equal monthly installments of Rs.0.025 million each
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Dharwad Branch College Road, Dharwad – 580 001

This form is for	Creation of charge Modification of charge
Charge identification number of the modified	90193108
Corporate identity number of the company	U29192KA1979PTC003680
Name of the company	AIRTECH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	5^th KM, NH-4 Village Narendra Dharwad village, Narendra Dharwad – 580 005, Karnataka, India.
Type of charge	· Immovable property · Book Debts · Movable Property · Floating Charge
Particular of charge holder	State Bank of India, Dharwad Main Branch, College Road, Dharwad – 580 001, Karnataka, India. E-Mail Id: surevict@gmail.com
Nature of description of the instrument creating or modifying the charge	Agreement of loan cum hypothecation form SME – 2 and link letter SME – 12 Memorandum for recording extension of mortgage by deposit of title deeds SME – 7 (All pertain to the same charge)
Date of instrument Creating the charge	29.03.2008
Amount secured by the charge	Rs.50.650 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate:1) WCL/TL-At Sbar with a minimum of 12.25%P.A. rising or falling therewith, on daily products with Monthly rests. Present effective rate 12.25%Per Annum. Penal interest for non compliance of terms of sanction: Max 2% Per Annum over the normal rate prepayment penalty as per terms of sanction. Terms of repayment WCL – On demand.Advance is for a period of 12 months and subject to review as per sanction. Term Loan: In 77 Monthly installements with effect from October 2008. First 6 Monthly Instalments of Rs.0.100 Million Each; Next 12 Monthly Instalments of Rs.0.200 Million Each; Next 12 Monthly Instalments of Rs.0.250 Millions Each; Next 46 Monthly Instalments of Rs.0.350 Millions Each; And the last instalments of Rs.0.400 Millions Margin RM/FG/BD/Receivables – 25 Semifinished Goods – 33% BG – 25% Term Loan – 26.42% Extent and operations of the charge Exclusive first charge on the assets of the company and to the full extent. Charge on immovable property covers to the extent of Rs.50.650 Millions, Charge on current assets and other movable assets covers to the extent of Rs.48.150 Millions. Others Cash credit of Rs.6.500 Millions; Term Loan 1 Rs.1.950 Millions; Term Loan 2 Rs.8.000 Millions;Term Loan 3 Rs.9.000 Millions; Bank guarantee Rs.0.200 Millions; New Term Loan Rs.22.500 Millions Total Limit of Rs.48.150 Millions.
Short particulars of the property charged	Hpo.of company’s present and future movable fixed assets and current assets like stocks, raw material, semi finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance Equit Mort of imm prop land and building situate at no.87/E, Sy no.87/E, Narendra Village, Dharwad measuring 1 acres 26 guntas.
Date of latest modification prior to the present modification	14.08.2005

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	Indian Rupees
US Dollar	1	Rs.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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