MIRA INFORM REPORT

Report Date :

12.03.2011

IDENTIFICATION DETAILS

Name :	AKAR IMPEX PRIVATE LIMITED
Registered Office :	205 Shantidoot Apartment, 18, Vasundhara Enclave, New Delhi – 110 096, Delhi
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.03.1986
Com. Reg. No.:	55 – 23634
CIN No.: [Company Identification No.]	U74899DL1986PTC023634
TAN No.: [Tax Deduction & Collection Account No.]	DELA12348A
PAN No.: [Permanent Account No.]	AAACA2253J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Waste Water Treatment Plants and Sewage Treatment Plants.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 23000
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 dealing 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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. Taral Vaidya
Designation :	Director
Contact No.:	91-9811421458
Date :	01.03.2011

LOCATIONS

Registered Office :	205 Shantidoot Apartment, 18, Vasundhara Enclave, New Delhi – 110096, Delhi, India
Mobile No. :	91-9871051499 (Mrs. Gurmeet Kaur)
E-Mail :	akagr@bol.net.in
Website :	www.akarimpex.com
Area :	1000 sq. ft.
Location :	Owned
Head Office :	E-9, Sector-6, Noida-201301, Uttar Pradesh, India.
Tel. No.:	91-120–4526666, 4255580 / 82/83
Fax No.:	91-120–4256632/2422541
E-Mail :	info@akarimpex.com taralkumar@akarimpex.com akarimpex@hotmail.com akarimpex@gmail.com akagr@bol.net.in akar@touchtelindia.net akarimpex@yahoo.co.in
Website :	www.akarimpex.com www.mobilwaterplants.com www.wastewater-treatment-plants.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Vaidya Ganesh Ratnakar
Designation :	Director
Address :	205, Shantidoot Apartment, 18, Vasundhra Enclave, Delhi – 110 096, India
Date of Birth/Age :	15.11.1944
Date of Appointment :	17.03.1986
Name :	Mr. Malhotra Lal Jawahar
Designation :	Director
Address :	205, Shantidoot Apartment, 18, Vasundhra Enclave, Delhi – 110 096, India
Date of Birth/Age :	29.10.1939
Date of Appointment :	20.03.1986
Name :	Mr. Vaidya Taral
Designation :	Director
Address :	205, Shantidoot Apartment, 18, Vasundhra Enclave, Delhi – 110 096, India
Date of Birth/Age :	03.11.1967
Date of Appointment :	28.06.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
R.G. Vaidya	50450
Sharda Vaidya	4950
J.L. Malhotra	13400
Shashi Bhanu	100
Taral Vaidya	68000
Ramesh Chandra	6000
Avani Vaidya	2750
Sandeep Malhotra	3600
Sanjeev Malhotra	3600
Total	152850

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Waste Water Treatment Plants and Sewage Treatment Plants
Products :	v Mobile Waste Water Treatment systems. v Packaged Akar Dynamic Bio-Reactor Systems. v Surface Aerators. v Floating Aerators. v Mixers / Agitators. v All types of Screens. v Diffused Aeration Systems. v Sludge Thickeners. v Filter Presses. v Clarifiers Mechanisms v All Types of Scrapers v Oil Removal Systems v Iron Removal Systems v Dissolved Air Floatation system
Terms :
Selling :	Cash and Credit (30 / 60 / 90 days)
Purchasing :	Cash and Credit (30 / 60 / 90 days)

GENERAL INFORMATION

Customers :

End users and OEM’s

In India

v Bhel
Indian Airlines

v Larson and Turbo

v Hcl Limited

v Bechtel International Incorporated

v Birla Education Trust

v ITC

v ONGC

v Nirulas and Company Private Limited

v Modi Institute

Outside India

v Microtech, Nepal

v Engineering Services, Sri Lanka

v Angelique Industrial Limited , Africa

v Pact Engineering, Dubai

v Master Textile, Pakistan

v Kcc Engineering and Contracting Co. , Kuwait

v Diamond Pace, Oman

v One Composite Mills Limited , Bangladesh

v Shepherd Industries, Bangladesh

v Engineering Centre (U.K.) Limited , U.K

No. of Employees :

50 (Approximately)

Bankers :

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

v ICICI Bank

v Ing Vysya Bank Limited, A-361, Sector – 19, Noida – 201301, Uttar Pradesh, India

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Cash Credit (Secured by hypothecation of stock and Equitable Mortgage of Land and Building and Guaranteed by the two Directors)	5.486	3.822
ICICI Bank Demand Loan (Guaranteed by the two directors)	0.000	0.094
Term Loan (Secured by hypothecation of car and guaranted by the one director)	0.000	0.220
Standard Chartered Bank	0.000	0.167
Total	5.486	4.303

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From Directors	0.187	0.437
From Shareholders	0.125	0.125
From Others	0.030	0.030
Total	0.342	0.592

Banking Relations :	-
Auditors :
Name :	Agarwal Anoop and Associates Chartered Accountants
Address :	37, Chawla Complex, A-215, Shakarpur, Vikas Marg, Delhi – 110 092, India
Pan No.:	AAFPA8126Q
Tel No.:	91-11-22500348
Fax No. :	91-11-22520449
Memberships :	Confederation of Indian Industry (CII) Federation of Indian chambers of commerce and Industry (FICCI) Engineering Export Promotion Council (EEPC)

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- Each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
152850	Equity Shares	Rs.10/- Each	Rs.1.528 Millions

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		1.528	1.528	1.528
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.283	3.333	2.656
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5.811	4.861	4.184
LOAN FUNDS
1] Secured Loans		5.486	4.303	4.178
2] Unsecured Loans		0.342	0.592	0.203
TOTAL BORROWING		5.828	4.895	4.381
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		11.639	9.756	6.896
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.364	1.326	1.471
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.025	0.026	0.027
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.600	3.143	5.236
	Sundry Debtors	7.297	5.298	7.953
	Cash & Bank Balances	2.394	2.034	1.301
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.313	4.049	2.825
Total Current Assets		16.604	14.524	17.315
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	9.434	4.640	9.238
	Provisions	0.920	1.480	1.010
Total Current Liabilities		10.354	6.120	10.248
Net Current Assets		6.250	8.404	7.067
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11.639	9.756	8.565

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	15.897	21.877	14.628
		Contract and Business Receipts	9.572	2.389	13.102
		Other Income	1.536	0.722	0.342
		TOTAL (A)	27.005	24.988	28.072
Less	EXPENSES
		Cost of Goods Manufactured	11.879	12.447	10.814
		Contracts Charges Paid	4.935	2.449	8.527
		Payment to and Provision for Employees	3.882	3.141	2.236
		Administrative Expenses	3.866	4.535	3.932
		TOTAL (B)	24.562	22.572	25.509
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.443	2.416	2.563
Less	FINANCIAL EXPENSES (D)		0.765	0.989	0.834
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.678	1.427	1.729
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.242	0.281	0.318
	PROFIT BEFORE TAX (E-F) (G)		1.436	1.146	1.411
Less	TAX (I)		0.486	0.470	0.548
	PROFIT AFTER TAX (G-I) (J)		0.950	0.676	0.863
	Earnings Per Share (Rs.)		22.00	4.42	5.50

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.52	2.70	2.99
Net Profit Margin (PBT/Sales)	(%)	9.03	5.24	9.65
Return on Total Assets (PBT/Total Assets}	(%)	6.54	7.23	7.51
Return on Investment (ROI) (PBT/Networth)		0.25	0.23	0.34
Debt Equity Ratio (Total Liability/Networth)		2.78	2.26	2.45
Current Ratio (Current Asset/Current Liability)		1.60	2.37	1.69

LOCAL AGENCY FURTHER INFORMATION

Operations:

During the year company has earned a net profit of Rs.0.950 millions after providing depreciation of Rs.0.242 million. Net Provision for taxation and Deferred tax for Rs.0.484 million

Bankers Charges Report as per Registry

Name of the company	AKAR IMPEX PRIVATE LIMITED
Presented By	Co. C HDFC Bank Limited
1) Date and description of instrument creating the change	Letter of hypothecation dated 31.08.2005. Memorandum of entry dated 31.08.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.000 Millions
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 all stock in trade and other merchandise, fixed assets, movable assets and book debts both present and future by way of first charge. Equitable mortgage of companies immovable property situated at E-9, Sector-6, Noida, Uttar Pradesh
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest as may be determined by the bank from time to time.
5) Name and Address and description of the person entitled to the charge.	HDFC Bank Limited, Dwarki, New Delhi

This form is for	Creation of charge
Corporate identity number of the company	U74899DL1986PTC023634
Name of the company	AKAR IMPEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	205 Shantidoot Apartment, 18, Vasundhara Enclave, New Delhi – 110 096, Delhi, India
Type of charge	Book Debts Floating Charge Others
Particular of charge holder	Ing Vysya Bank Limited, A-361, Sector – 19, Noida – 201301, Uttar Pradesh, India
Nature of description of the instrument creating or modifying the charge	General Hypothecation Agreement General counter Guarantee and Indemnity
Date of instrument Creating the charge	30.08.2010
Amount secured by the charge	Rs.15.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : OD-SIT/BD : IVBR + 3.75% i.e. 11% (IVBR at present is at 7.25) Bank Guarantee : Commission 1 % p.a. Terms of Repayment : OD-SIT/BD : Payable on Demand BG : Payable on Demand Margin : OD-SIT/BD : 25% on stock and 35% on book debts Bank Guarantee : 25% with due noting lien. Extent and Operation of the charge : OD-SIT/BD limit - Rs.10.000 millions Bank Guarantee - Rs. 5.000 millions Total exposure - Rs. 15.000 millions Exclusive charge on Hypothecation of Stock containing machinery used for water treatment plants and alied items etc. and Book debts all present and future.
Short particulars of the property charged	Exclusive charge on Hypothecation of Stock containing machinery used for Water Treatment Plants and allied items etc. and Book debts all present and future. Above stock stored/ to be stored at E-9, Sector-6, Noida or anywhere else from time to time.

TRADE REFERENCE :

• Angelique Industrial Limited, Africa
• Engineering Centre (UK) Limited, UK

FIXED ASSETS:

v Land and Building

v Land at Sitarganj

v Building at Noida

v Building at Sitarganj

v Plant and Machinery

v F. Fighting Equipment

v Office Equipment

v Testing Equipment

v Books

v Electric Fitting

v Loose Tools

v Typewriter

v Computer

v Vehicles

v Furniture and Fixture

v Air Conditioner

v Mobile

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.45.21
UK Pound	1	Rs.72.55
Euro	1	Rs.62.43

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	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		46

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.