MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	KIRLOSKAR PNEUMATIC COMPANY LIMITED
Registered Office :	Plot No. 1, Hadapsar Industrial Estate, Pune – 411 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.11.1974
Com. Reg. No.:	11-110307
Capital Investment / Paid-up Capital :	Rs.128.443 Millions
CIN No.: [Company Identification No.]	L29120PN1974PLC110307
TAN No.: [Tax Deduction & Collection Account No.]	PNEK01506B
PAN No.: [Permanent Account No.]	AAACK2479C
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Pneumatic Systems viz. compressed air, air conditioning, refrigeration and hydraulic power transmission equipment; erection, commissioning and servicing of company’s products.
No. of Employees :	900 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 6400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a kirloskar group company. It is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

INFORMATION PARTED BY

Name :	Mr. Manoj Deshpande
Designation :	Finance Manager
Date :	21.06.2011

LOCATIONS

Registered Office :	Hadapsar Industrial Estate, Pune 411013, Maharashtra, India
Tel. No.:	91-20-26727000/ 6870133/ 6870341
Fax No.:	91-20-26870297 / 634
E-Mail :	Sec@Kpcl.Net kpcl@kpcl.net
Registrar and transfer agent
Pune Office :	Akshay Complex, No.202, 2^nd Floor, Near Ganesh Temple, Opposite Dhole Patil Road, Pune 411001
Tel. No.:	91-20-26053502 / 51629 / 50084
Fax No.:	91-20-26053503
E-Mail :	Pune@Linktime.Co.In
Mumbai Office :	C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai – 400078, Maharashtra, India
Tel. No.:	91-22-5963838
Fax No.:	91-22-5946969
E-Mail :	Mumbai@Linktime.Co.In
Plant locations:	Hadapsar Industrial Estate, Pune 411013, Maharashtra, India Saswad, Purandar, Pune, Maharashtra, India

DIRECTORS

As on : 26.07.2010

Name :	Mr. Sanjay C. Kirloskar
Designation :	Chairman
Name:	Mr.D.R.Swar
Designation:	Director
Date of appointment:	25.04.2009
Name:	Mr. H. R. Mustikar
Designation:	Managing Director
Name:	Mr. Rahul C. Kirloskar
Designation:	Director
Age:	41 Years
Experience:	15 Years
Name:	Mr. Vikram S. Kirloskar
Designation:	Director
Age:	46 Years
Qualification:	Bachelor of Science in Mechanical Engineering
Name:	Mr. J. Y. Tekawade
Designation:	Director
Name:	Mr. A. C. Mukherji
Designation:	Director
Name:	Mr. P. S. Jawadekar
Designation:	Director
Name:	Mr. G. Krishna Rao
Designation:	Director ( Nominee GIC)
Name:	Mr. Aditya Kowshik
Designation:	Executive Director
Date of appointment:	24.10.2008

KEY EXECUTIVES

Name :	Mr. Kedar P Phadke
Designation :	Company Secretary

SHAREHOLDING PATTERN

As On 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,487,157	19.36
Bodies Corporate	4,686,826	36.49
Sub Total	7,173,983	55.85
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7,173,983	55.85
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2,852,979	22.21
Financial Institutions / Banks	0,946	0.01
Insurance Companies	71,064	0.55
Sub Total	2,924,989	22.77
(2) Non-Institutions
Bodies Corporate	688,614	5.36
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1,493,891	11.63
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	511,421	3.98
Any Others (Specify)	51,440	0.40
Clearing Members	7,534	0.06
Non Resident Indians	43,902	0.34
Trusts	4	-
Sub Total	2,745,366	21.37
Total Public shareholding (B)	5,670,355	44.15
Total (A)+(B)	12,844,338	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
Total (A)+(B)+(C)	12,844,338	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pneumatic Systems viz. compressed air, air conditioning, refrigeration and hydraulic power transmission equipment; erection, commissioning and servicing of company’s products.

Brand Name :

“Kirloskar”

Products :

Item Code	Product Description
356501000	Air and Gas Compressor
375308000	Marine Gear Boxes
356106000	Industrial Air Conditioning and Refrigeration Equipment

Exports :

Countries :

· USA

· Gulf Countries

· Dubai

Imports :

Product :

Raw Materials

Countries :

· USA

· China

Terms :

Purchasing :

Depends

PRODUCTION STATUS 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Compressors	Nos	9846	5501	1969
Transmission Equipment and Gear Boxes	Nos	4300	142	142

NOTE: INSTALLED CAPACITY

Most of the Plant and Machinery being common for different products manufactured by the Company and installed capacity being dependent on Product Mix, which in turn is decided by the actual demand for various products from time to time and also on availing of subcontracting facilities, it is not ascertainable for the Company to indicate the exact installed capacity. The Company has, however, indicated the installed capacity on the basis of year‘s Products Mix as certified by the Executive Director of company and being a technical matter, accepted by the Auditors as correct.

GENERAL INFORMATION

Customers :

· Others

· Industries

No. of Employees :

900 (Approximately)

Bankers :

• Bank of India
• Bank of Maharashtra
• State Bank of India
• Union Bank of India
• ICICI Bank Limited
• HDFC Bank Limited

Facilities :

SECURED LOAN	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In millions)
Other Loans: From ICICI Limited (secured against hypothecation of specific vehicles purchased.)	0.000	1.328
Rupee term loan from ICICI Bank Limited (For security see (c) below)	50.000	90.000
Foreign currency term loan from bank of India, wembley (For security see (d) below)	249.040	281.380
Working capital loans from consortium banks cash credit (For security see (e) below)	0.000	0.000
Total	299.040	372.708

Note : SECURED LOAN

(a) Rupee Term Loan from ICICI Bank Limited, is secured by a) Second charge by way of executing legal Mortgage of immovable properties situate at i) Hadapsar Industrial Estate, Pune both present and future ii) Saswad within the

limits of Saswad Municipal Corporation both present and future iii) All movable assets of the Company present and future b) Corporate Guarantee by M/s. Kirloskar Oil Engines Limited

(b) ECB of US$ 5,500,000 (US$ Five Million Five Hundred Thousand) from Bank of India, UK, is secured by first exclusive legal charge on specific assets worth Rs. 400.000 millions

UNSECURED LOAN (RS. IN MILLIONS)	31.03.2010	31.03.2009
Sales tax interest free loan from the state industrial and Investment Corporation of Maharashtra limited	1.480	4.242
Total	1.480	4.242

Banking Relations :	---
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates :	Kirloskar Chilliers Private Limited
Subsidiaries :	Kirloskar Indair Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity shares	Rs.10/-each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12844338	Equity shares	Rs.10/-each	Rs.128.443 Millions

NOTE:

i) 1495100 Equity Shares of Rs. 10/- each were allotted as fully paid up Bonus Shares by capitalization of General Reserve.

ii) 592000 Equity Shares of Rs. 10/- each were allotted as fully paid up as per Delhi High Court Amalgamation order without payment being received in cash.

iii) 2590138 Equity Shares of Rs. 10/- each were allotted to Equity Shareholders of Erstwhile Kirloskar Pneumatic Company Limited on Amalgamation as per scheme approved by the High Court of judicature at Mumbai.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		128.443	128.443	128.443
2] Share Application Money		0.000	0.000	0.000
2] Reserves & Surplus		1479.668	1180.941	914.042
3] Accumulated Losses		0.000	0.000	0.000
NETWORTH		1608.111	1309.384	1042.485
LOAN FUNDS
1] Secured Loans		299.040	372.708	216.617
2] Unsecured Loans		1.480	4.242	8.056
TOTAL BORROWING		300.520	376.950	224.673
Deferred Tax liability		20.600	14.628	16.018
TOTAL		1929.231	1700.962	1283.176
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		724.097	478.954	391.903
Capital work-in-progress		39.763	96.937	21.664
INVESTMENT		272.186	207.198	36.107
Technical Know-how		28.617	32.784	20.284
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	741.598	1024.228	717.515
	Sundry Debtors	1395.659	1338.505	1362.375
	Cash & Bank Balances	259.790	308.766	108.747
	Loans & Advances	476.500	511.856	299.934
Total Current Assets		2873.547	3183.355	2488.571
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	851.917	848.731	580.033
	Sundry Creditors	730.386	1042.715	867.468
	Provisions	426.636	406.820	227.852
Total Current Liabilities		2008.979	2298.266	1675.353
Net Current Assets		864.568	885.089	813.218
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1929.231	1700.962	1283.170

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4532.796	5184.823	4028.208
		Other Income	99.706	72.534	83.680
		TOTAL (A)	4632.502	5257.357	4111.888
Less	EXPENSES
		Material Consumes and Manufacturing Expenses	2836.426	3450.927	2647.643
		Employee’s Emoluments	531.876	510.375	476.232
		Sundry Expenses	489.813	593.484	552.501
		TOTAL (B)	3858.115	4554.786	3676.376
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		774.387	702.571	435.513
Less	FINANCIAL EXPENSES (D)		18.597	23.653	25.249
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		755.790	678.918	410.264
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.507	52.795	40.500
	PROFIT BEFORE TAX (E-F) (G)		682.283	626.123	369.764
Less	TAX (I)		206.575	217.613	71.380
	PROFIT AFTER TAX (G-I) (J)		475.708	408.510	298.384
Less	TAX ADJUSTMENTS IN RESPECT OF EARLIER YEARS (NET)		3.403	8.688	6.377
	EXPENSES IN RESPECT OF PREVIOUS YEARS		(0.066)	(0.026)	(0.108)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		168.404	151.504	152.041
Less	APPROPRIATIONS
		Transfer to General Reserve	300.000	250.000	200.000
		Dividend	154.132	128.443	89.910
		Tax on Dividend	26.187	21.828	15.280
	BALANCE CARRIED TO THE B/S		167.131	168.404	151.504
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	172.851	196.603	195.794
		Commission Received	0.000	0.000	0.051
	TOTAL EARNINGS		172.851	196.603	195.845
	IMPORTS
		Raw Materials (including component and spares)	486.137	919.434	571.090
		Capital Goods	82.435	118.463	79.100
	TOTAL IMPORTS		568.572	1037.897	650.190
	Earnings Per Share (Rs.)		37.29	32.48	23.72

Particulars	31.03.2011
Sales Turnover (Approximately)	5000.000

The above information has been parted by Mr. Manoj Deshpande.

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	866.800	1200.800	977.100	1872.600
Total Expenditure	820.400	1051.500	852.600	1505.900
PBIDT (Excl OI)	46.400	149.300	124.500	366.700
Other Income	15.000	24.400	20.200	36.500
Operating Profit	61.400	173.700	144.700	403.200
Interest	4.300	6.500	6.000	1.800
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	57.100	167.200	138.700	401.400
Depreciation	20.600	22.000	22.400	48.300
Profit Before Tax	36.500	145.200	116.300	353.100
Tax	13.400	50.100	36.600	115.800
Reported PAT	23.100	95.100	79.700	237.300
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	6.600	0.000	(2.500)
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	23.100	101.600	79.700	234.800

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.26	7.77	7.25
Net Profit Margin (PBT/Sales)	(%)	15.05	12.07	9.17
Return on Total Assets (PBT/Total Assets}	(%)	13.22	15.65	12.49
Return on Investment (ROI) (PBT/Networth)		0.42	0.47	0.35
Debt Equity Ratio (Total Liability/Networth)		1.43	2.04	1.82
Current Ratio (Current Asset/Current Liability)		1.43	1.38	1.48

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Due to Micro and Medium Enterprises	0.000	0.000	0.000
Other Liabilities	730.386	1042.715	867.468
Total	730.386	1042.715	867.468

HISTORY:

K G Khosla Compressors Limited. a Kirloskar group of company was incorporated in Nov.'74 as Khosla Compressors. The name of the company was changed to K G Khosla Compressors in 1976. Originally the company was promoted by K G Khosla. Kirloskar Pneumatic Company Limited Acquired additional 20,51,000 equity shares of the company pursuant to SEBI in 1998-99. During the year 2002, Kirloskar Pneumatic Company merged with the company and the name was changed to Kirloskar Pneumatic Company. It manufactures high pressure compressors, air and gas compressors, refrigeration compressors, hydraulic press vacuum pumps and grey iron castings. The main product of the company -- air and gas compressors -- are used by steel plants, fertiliser plants, and by general engineering industry. The company suffered industrial unrest for a few years and the plant was locked out between Sep.'91 and Jun.'92. A revival plan was prepared in consultation with financial institutions, including raising of fresh capital. In Feb.'94, the company came out with a rights issue at a premium to raise funds for a voluntary retirement scheme, for the reduction of a part of the high-interest borrowings and for long-term working capital. The revival plan has been successfully implemented. In 1997 the Company has improved the technology for gas compressors with the help of IHI Limited, Japan. The company has also tied up with KOBELCO for Dry Screw Compressors. Both of this would fetch additional business for the company. In the second half of 1999-2000 the company has taken over the air compressors business of the Kirloskar Pneumatic Company Limited, on licence. The company has also entered into a License Agreement with Kirloskar Proprietory Limited to use the brand name `Kirloskar' on its products, letter heads, etc. which will help to promote its products in the market.

OPERATIONS

The Global Economic Crisis witnessed in the later part of the last year impacted the executable order board for the first quarter of the year 2009-10. The corresponding sales therefore in the first quarter were lower by Rs.550 million and this shortfall could not be recouped through out the year. Thus the Company could register sales of Rs.4533 million during the year under report as against Rs.5185 million during 2008-09.

However, various measures undertaken to strengthen operations, costs reduction to improve bottom line have resulted in improvement in profit after tax from Rs.408 million of the previous year to Rs.475 million in the year 2009-10.

ENERGY CONSERVATION

Kirloskar Pneumatic, Hadapsarand Saswad Plant jointly participated in State and National level "Energy Management and Conservation Competition" organized by MEDA ( Maharashtra Energy Development Agency) and CM (Confederation of Indian Industries) and bagged third prize and" Energy Efficient Unit Award" respectively. Kirloskar Pneumatic, Hadapsar Plant bagged the "Third Prize" in Kirloskar Group Energy Conservation Competition, which was held among the Kirloskar Group Companies

PROSPECTS

The Gas Compression business is growing and the company is prepared to meet this challenge.

As a preferred supplier for Refrigeration and AC Packages the company has bagged many prestigious orders during the year and has been selected for many more in the coming years.

During the year, 1 MW range wind turbine gearbox was successfully developed and we expect to commence serial production.

DIRECTORS

Mr. Sanjay C. Kirloskar expressed his inability to continue as the Chairman of the Company w.e.f February 24, 2010 due to other pre-occupations, but continues to act as the Director of the Company.

He was elected as the Chairman of the Company on July 6, 1999 and continued to act as Chairman of the Company over a decade.

The Board places on record its appreciation of the rich and varied experience, advise, counsel and guidance received during his tenure as the Chairman of the Company.

The Board unanimously elected Mr. Rahul C. Kirloskar as the Chairman of the Company w.e.f. March 9,2010. Mr. J Y Tekawade and Mr. P S Jawadekar retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment.

MANAGEMENT DISCUSSIONS AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

The recessionary trends of the last year due to global financial crisis impacted sales of both the segments. However, during the year the order board of the Company improved significantly. Consequently, the Company is in a position to achieve a sizeable growth during the current year.

BUSINESS SEGMENTS (SEGMENT-WISE PERFORMANCE)

The Company has two major business segments viz. Compression Systems and

TRANSMISSION PRODUCTS :

Compression Systems The Compression Systems are set-up at Hadapsar and Saswad, both at Pune, manufacturing a wide variety of compressors, and also undertaking design, packaging of conventional and high-tech refrigeration systems and serving various industries such as Power Generation, Air Separation, Textile, Iron and Steel, Oil and Gas, Cement, Sugar, Defence, Railways, Construction and Mining, Fertilizers, Pharmaceuticals, Dairy, Brewery, Fish and Meat Processing, Cold Storage, Ice Plant etc. The plant at Saswad also packages Gas Compression systems for CNG Stations, Refineries and Petrochemical Industry.

TRANSMISSION PRODUCTS :

The Transmission Products are manufactured at Hadapsar, Pune for Rail Traction Gears, Wind Turbine Gearboxes, Marine Gearboxes for Naval and commercial ships and gearboxes for industrial applications.

PERFORMANCE

During the year, the turnover of Compression Systems Segment, was Rs. 3,903.68 million, (previous year Rs. 4,235.982million) The turnover of Transmission Products Segment was Rs. 629.11 million, (previous year Rs. 948.84 million).

OUTLOOK

The Company is focused on

1) Oil and Gas

2) Food

3) Power

4) Railways

5) Indian Navy

In addition to above sectors, the general trend in the Indian industrial sector is positive resulting better order booking of the Company in the current financial year. The current year too will see the considerable investment in all these areas and our product lines have been geared up to meetthese demands. The Company received a prestigious order for supply of Refrigeration Compressor Package for Coal Gasification Plant.

FIXED ASSETS:

• Land
• Building
• Water Tanks and Pipelines
• Plant and Machinery (Including Equipments)
• Electrical Installations
• Furniture and Fixture
• Vehicles
• Leased Assets (Plant and Machinery)

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED SEPTEMBER 31, DECEMBER 2010 RS. IN MILLIONS

Sr. no	Particular	Quarter ended on December 31, 2010	Nine Month Ended on December 31, 2010
		(Unaudited)	(Unaudited)
1.	Sales / Income from operations	1048.900	3249.100
	Less : Excise Duty	71.800	204.400
	Net Sales / Income from operations	977.100	3044.700
2.	Expenditure
	a (Increase) / Decrease in stock in trade	(94.400)	(53.900)
	b Consumption of Raw Materials	573.500	1719.100
	c Manufacturing Expenses	84.200	230.400
	d Employee Cost	152.200	464.300
	e Depreciation	22.400	65.000
	f Other Expenditure	137.100	364.700
	g Total	875.000	2789.600
3.	Profit/(Loss) from Operations before Other Income and Interest	102.100	255.100
4.	other Income	20.200	59.600
5.	profit/(loss) before interest	122.300	314.700
6.	Interest	6.000	16.900
7.	Profit/(Loss) before tax	116.300	297.800
8.	Provision for Taxation
	a Current	35.300	96.300
	b Deferred Tax	1.300	3.800
	c Fringe Benefit Tax	--
9.	Prior period Adjustments Debit/ (Credit)	--	(6.600)
10.	Net Profit/(Loss) after tax	797.300	204.300
11.	Paid up Equity Share Capital (Face Value of Rs. 10/- each)	128.400	128.400
12.	Reserves excluding Revaluation Reserve	--	--
13.	Basic and diluted EPS (Rs.)
14.	Public Shareholding	6.21	15.91
	Number of Shares	5670355	5670355
	Percentage of Shareholding	44.15%	44.15%
15.	Promoter and Promoter Group Share holding
	a. Pledged / Encumbered Number of Shares Percentage of shares ( as a % of the total shareholding of promoter and promoter group ) Percentage of shares ( as a % of the total share capital of the company )	-- -- --	-- -- --
	b. Non Encumbered Number of Shares Percentage of shares ( as a % of the total shareholding of promoter and promoter group ) Percentage of share capital of the company )	7173983 100.00% 55.85%	7173983 100.00% 55.85%

Note:

1. The above results have been reviewed and recommended by the audit committee and approved by the board of directors at its meeting held on 19.01.2011. The Statutory Auditors have conducted ‘Limited Review’ of the Financial Results.

2. The company has received any complaint from investors during the quarter

3. The Board of Directors today appointed Mr. Sunil Shah Singh as an Additional Director of the company with immediate effect. He will hole office upto the date of the annual General meeting. When his appointment as a director will be placed for the approval of the Shareholders.

3. Previous periods figures are regrouped, wherever necessary to make them comparable with those of the current year.

SEGMENT –WISE REVENUE, RESULTS AND CAPITAL EMPLOYED, AS PER CLAUSE 41 OF THE LISTING AGREEMENT

Sr. No	Particular	Quarter ended on December 31, 2010	Nine Months ended December 31, 2009
		Unaudited	Unaudited
1.	Segment Revenue	824.900	2672.600
	a. Compression System	152.200	372.100
	b. Transmission Products	977.100	3044.700
	Total	--	--
	Less: Inter Segment revene
	Net Sales/ Income From Operations	977.100	3044.700
2.	Segment Results
	Profit/ Loss Before Tax and Interest from each segment
	a. Compression System	172.400	511.500
	b. Transmission Products	2.200	(39.600)
	Total	174.600	471.900
	Less: i. Interest	6.000	16.900
	ii. Other unallocable expenditure net off unallocable income	52.300	157.200
	Total Profit/ Loss Before Tax	116.300	297.800
3.	Capital Employed (Segment Assets – Segment Liabilities)
	a. Compression System	488.600	488.600
	b. Transmission Products	625.800	625.800
	Total Capital Employed in Segments	1114.400	1114.400
	Add: Unallocable corporate assets net of Liabilities	928.300	928.300
	Total Capital employed in the company	2042.700	2042.700

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. 44.82
UK Pound	1	Rs. 72.83
Euro	1	Rs. 64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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

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

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

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.