MIRA INFORM REPORT

Report Date :

28.12.2011

IDENTIFICATION DETAILS

Name :	PATELS AIRFLOW LIMITED
Registered Office :	61, Phase – 1, G.I.D.C., Industrial Estate, Vatva, Ahmedabad – 382 445, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.09.2001
Com. Reg. No.:	04-039998
Capital Investment / Paid-up Capital :	Rs.22.501 Millions
CIN No.: [Company Identification No.]	U31909GJ2001PLC039998
TAN No.: [Tax Deduction & Collection Account No.]	AHMP02025C
PAN No.: [Permanent Account No.]	AACCP6963G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Fans, Blowers and CS Seamless Tubes.
No. of Employees :	115 (In office + In factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 310000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Shailesh Patel
Designation :	Account Manager
Contact No.:	91-79-25830658
Date :	15.12.2011

LOCATIONS

Registered Office/ Factory :	61, Phase – 1, G.I.D.C., Industrial Estate, Vatva, Ahmedabad – 382 445, Gujarat, India
Tel. No.:	91-79-40200800/ 25831536/ 25830658
Fax No.:	91-79-40200888/ 25830865/ 25831537
E-Mail :	pafl@dataone.in paflacct@rediffmail.com info@patelsairflow.com info@pafltube.com info@steeltubeindia.com purchase@steeltubeindia.com
Website :	http://www.steeltubeindia.com
Area :	700 sq. ft
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Devang Kashiram Patel
Designation :	Director
Date of Appointment :	01.10.2006
DIN No.:	00146420

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65910GJ1994PTC022361	Sunrise Fintrade Private limited	Director	28-06-94	28-06-94	05-10-09	Strike off	NO
2	U31909GJ2001PLC039998	Patels Airflow Limited	Director	01-10-06	01-10-06	-	Active	NO
3	U29100GJ2011PTC068210	Farmson Envirocare Private Limited	Director	14-12-11	14-12-11	-	Active	NO

Name :	Mr. Himanshu Popatlal Patel
Designation :	Director
Address :	6/B, Sardar Patel Society, Maninagar, Ahmedabad – 380 008, Gujarat, India
Date of Appointment :	01.10.2006
DIN No.:	00145270

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65910GJ1994PTC022361	Sunrise Fintrade Private Limited	Director	28-06-94	28-06-94	05-10-09	Strike off	NO
2	U31909GJ2001PLC039998	Patels Airflow Limited	Director	01-10-06	01-10-06	-	Active	NO
3	U45201GJ1997PTC031946	Sarthak Organisers Private Limited	Director	29-09-07	03-10-06	22-03-11	Active	NO

Name :	Mr. Prakash Bhogilal Patel
Designation :	Director
Address :	19/ 416, Satyagrah Chhavni Society, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	16.11.1968
Date of Appointment :	01.10.2006
DIN No.:	00176928

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65910GJ1994PTC022361	Sunrise Fintrade Private Limited	Director	29-06-00	29-06-00	05-10-09	Strike off	NO
2	U31909GJ2001PLC039998	Patels Airflow Limited	Director	01-10-06	01-10-06	-	Active	NO

Name :	Mr. Popatlal Patel
Designation :	Director
Address :	6/B, Sardar Patel Society, Maninagar, Ahmedabad – 380 008, Gujarat, India
Date of Appointment :	17.09.2001
DIN No.:	00145058
Name :	Mr. Bhogilal I. Patel
Designation :	Director
Address :	19/ 416, Satyagrah Chhavni Society, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Date of Appointment :	17.09.2001
DIN No.:	00144617
Name :	Mr. Kashiram Khodidas Patel
Designation :	Director
Address :	“Parishram”, 24-B, Mithila Society, Ambawadi, Ahmedabad – 380 115, Gujarat, India
Date of Appointment :	17.09.2001
DIN No.:	00145192

KEY EXECUTIVES

Name :	Mr. Shailesh Patel
Designation :	Account Manager
Name :	Mr. Minesh Vyas
Designation :	General Manager - Works
E-Mail:	info@steeltubeindia.com
Name :	Mr. Hardik Patel
Designation :	Assistant Manager - Marketing
E-Mail:	mktg@steeltubeindia.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Shantaben Kashiram Patel	223825
Prakash Bhogilal Patel	215800
Gitaben Devang Patel	174200
Dhaniben Bhogilal Patel	161525
Bhogilal I Patel	156265
Kashiram Khodidas Patel	135500
Trupti H Patel	125650
Madhuben P Patel	118115
Popatlal B Patel	112011
Himanshu P Patel	108325
Rita Prakash Patel	105011
Popatlal Bhopabhai Patel	91750
Devang Kashiram Patel	72375
Himanshu Popatlal Patel	66500
Harsha Hitesh Javeri	17637
Santokben R Patel	15000
Geeta Bhogilal Patel	11270
Kaushik Ramanlal Shah	8825
Jignesh Bhogilal Patel	7825
Roshni J Patel	5750

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	0.35
Directors or relatives of Directors	75.09
Other top fifty shareholders	9.55
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Fans, Blowers and CS Seamless Tubes.

Products :

• Carbon Steel Cold Drawn Seamless Straight Tubes / Pipes
• Alloy Steel Cold Drawn Seamless Straight Tubes / Pipes
• Carbon Steel Cold Drawn Seamless 'U' Tubes / Pipes

Product Description	Item Code No.
Industrial Fans / Blower and Carbon Steel / Alloy Street, Cold Drawn Seamless tubes and pipes	84145930 and 73049000

Exports :

Products :

• Finished Goods

Countries :

• UK
• USA

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Licensed Capacity: Not Applicable

Installed Capacity: The items manufactured are tailor made and are different in each case nad hence, capacity installed is not ascertainable

Actual Production:

Particulars	Unit	Actual Production
Industrial Fan, blowers and its Accessories	No. Sets	1707 446
Seamless Tubes	Kgs.	913823

GENERAL INFORMATION

Customers :

Wholesalers and Others(Manufacturing Companies)

No. of Employees :

115 (In office + In factory)

Bankers :

Bank of India, Vatva Industrial Estate, (SME) Branch, 91/21, Phase1, GIDC, Vatva, Ahmedabad – 382 445, Gujarat, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working Capital Loan
Form Bank of India	4.700	5.709
Term Loans
Form Bank of India (Both secured against hypothecation of stock, book debts, plant and machineries and equitable mortgage of factory premises)	0.000	1.219
Form ICICI Bank Limited	0.214	0.502
Form Kotak Mahendra Prime Limited Bank (Both secured against hypothecation of vehicles) (amount due for repayment within one year Rs.2.540 millions)	3.315	2.961
Total	8.229	10.391

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Form Shareholders	6.600	5.100
Form Others	0.500	0.000
Total	7.100	5.100

Banking Relations :	--
Auditors :
Name :	Ashesh Alkesh and Company Chartered Accountants
Address :	301, Mahashakti Complex, Opposite Loha Bhavan, Old High Court Road, Ashram Road, Ahmedabad – 380 009, Gujarat, India
PAN No.:	AAFFA3771M

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2510000	Equity Shares	Rs.10/- each	Rs.25.100 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2250080	Equity Shares	Rs.10/- each	Rs.22.501 millions

Note:

Of the above share 1690080 shares were allotted as fully paid up pursuant to the scheme of arrangement and restructure (de-merger) without payments being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		22.501	22.501	22.501
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		53.934	47.509	33.694
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		76.435	70.010	56.195
LOAN FUNDS
1] Secured Loans		8.229	10.391	9.447
2] Unsecured Loans		7.100	5.100	5.100
TOTAL BORROWING		15.329	15.491	14.547
DEFERRED TAX LIABILITIES		5.810	5.322	3.907
TOTAL		97.574	90.823	74.649
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.347	47.701	38.321
Capital work-in-progress		0.000	0.000	0.887
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.530	21.671	12.496
	Sundry Debtors	35.946	24.704	23.003
	Cash & Bank Balances	8.889	11.025	10.152
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.487	18.574	12.325
Total Current Assets		83.852	75.974	57.976
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.345	8.988	8.270
	Other Current Liabilities	5.657	3.958	3.763
	Provisions	11.771	20.079	10.699
Total Current Liabilities		32.773	33.025	22.732
Net Current Assets		51.079	42.949	35.244
MISCELLANEOUS EXPENSES		0.048	0.073	0.097
TOTAL		97.574	90.823	74.649

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	169.830	142.467	97.604
		Job Work Charges	3.274	18.302	13.084
		Other Income	1.562	0.999	1.549
		TOTAL (A)	174.666	161.768	112.237
Less	EXPENSES
		Manufacturing and Other Expenses	156.292	130.856	92.369
		Variation in Stock	(4.424)	(1.769)	(0.217)
		Prior Year Tax Adjustments	(0.113)	(0.004)	(0.044)
		TOTAL (B)	151.755	129.083	92.108
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.911	32.685	20.129
Less	INTEREST & FINANCIAL EXPENSES (D)		2.525	1.589	1.705
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.386	31.096	18.424
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.996	2.577	1.916
	PROFIT BEFORE TAX (E-F) (G)		17.390	28.519	16.508
Less	TAX (H)		5.718	9.965	5.934
	PROFIT AFTER TAX (G-H) (I)		11.672	18.554	10.574
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		40.449	28.633	21.718
Less	APPROPRIATIONS
		Proposed Dividend	4.500	4.050	2.700
		Tax on Dividend	0.747	0.688	0.459
		Transfer to General Reserve	2.000	2.000	0.500
	BALANCE CARRIED TO THE B/S		44.874	40.449	28.633
	Earnings Per Share (Rs.)		5.19	8.25	4.70

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.68	11.47	9.42
Net Profit Margin (PBT/Sales)	(%)	10.24	20.02	16.86
Return on Total Assets (PBT/Total Assets}	(%)	13.36	23.06	17.14
Return on Investment (ROI) (PBT/Networth)		0.23	0.41	0.29
Debt Equity Ratio (Total Liability/Networth)		0.63	0.69	0.73
Current Ratio (Current Asset/Current Liability)		2.56	2.30	2.55

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS:

During the year under report, the sales of the company have been increased from Rs.163.537 Millions to Rs.179.089 Millions which shows significant rise. The company has earned profit (before taxation) of Rs.17.276 Millions (previous year Rs.28.514 Millions) which is quite encouraging. The progress of the company is very much satisfactorily, which is due to hard and sincere efforts of the Directors of the company.

FORM 8

Corporate identity number of the company	U31909GJ2001PLC039998
Name of the company	PATELS AIRFLOW LIMITED
Address of the registered office or of the principal place of business in India of the company	61, Phase – 1, GIDC, Industrial estate, Vatva, Ahmedabad 382445, Gujarat, India E-mail : paflacct@rediffmail.com
This form is for	Creation of charge
Charge identification (ID) number of the charge to be modified
Type of charge	Immovable property Any interest in immovable property
Particular of charge holder	Bank of India, Vatva industrial estate, (SME) Branch, 91/21, Phase1, GIDC, Vatva, Ahmedabad 382445, Gujarat, India E-Mail : vessi.ahmedabad@bankofindia.co.in
Nature of instrument creating charge	Memorandum of entry executed on 29.12.2010 for creation of equitable mortgage on immovable prop of the co to secure fund and non fund based credit facilities aggregating Rs.23.052 Millions registered with sub registrar sro - ahmedabad - 5 narol at sr no 209 of book no 1 on 05.01.2011
Date of instrument Creating the charge	29.12.2010
Amount secured by the charge	Rs.23.052 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest TL - 2.75% Over BR i.e. 11.25% P.A. Plus 0.75% Prem Effective 12% P.A. CC STK / BK DTS - 2.75% Over BR i.e. 11.25% P.A., EPC / FBP / FBN / BK GUA - As Per Rules Terms of repayment Term Loan - 60 EMI OF Rs.0.166 Millions Each. CC Stock - On Demand / Annual Review EPC (Sub Limit) - On Demand / Annual Review CC Book Debts - On Demand / Annual Review FBP/FBN - 90 Days (Sub Limit) - On Demand / Annual Review BK Guarantee - On Demand / Annual Review Margin Term Loan - 24.60% CC Stock - 25% EPC - 25% CC Book Debts - 40% FBP/FBN - 90 Days - 40% Extent and operation of the charge First and exclusive equitable mortgage charge on all immovable properties of the co being land, building, sheds, structures standings thereon and fixed plant and mach etc to secure fund and non fund based credit facilities aggregating Rs.23.052 Millions along with interest, additional interest, penal interest, liquidated damages, costs, charges and commission and such other amt due to the bank from time to time of what so ever nature
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All piece of land known as plot no. 61/a, phase I vatva industrial area consiting of rev s. No 952 within village of vatva, taluka dascroi, district ahmedabad adm 4181 sq mts with building, construction etc.

FIXED ASSETS

· Land (Leasehold)

· Buildings

· Plant and Machinery

· Electric Installation

· Furniture and Fixtures

· Office Equipments

· 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	Indian Rupees
US Dollar	1	Rs.52.89
UK Pound	1	Rs.82.71
Euro	1	Rs.69.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.