MIRA INFORM REPORT

Report Date :

12.03.2011

IDENTIFICATION DETAILS

Name :	MULTITEX FILTRATION ENGIENEERS LIMITED
Registered Office :	217, Hans Bhawan, Singh Zafar Marg, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.11.1982
Com. Reg. No.:	55-14716
CIN No.: [Company Identification No.]	U74899DL1982PLC014716
TAN No.: [Tax Deduction & Collection Account No.]	DELM08634D
PAN No.: [Permanent Account No.]	AAACM4722G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and supplier of all types of Industrial Filtration Equipments, Sterlisers, Air and Fluid Handling Equipments and Systems, Air and Water Filtration Equipments and to undertake and execute all types of turnkey projects in the above fields.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 940000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company satisfactory track record. 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 for normal 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 – 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

LOCATIONS

Registered / Head Office :	217, Hans Bhawan, Singh Zafar Marg, New Delhi-110002, India
Tel. No.:	91-11-23370923/23370479/23311275 / 23316779 / 23715882 / 23715923 / 23316028
Fax No.:	91-11-23370221/ 23722221
E-Mail :	multitex@bol.net.in multitex@multitexfilters.com
Telex :	031-62206
Area :	350 sq. ft. (Owned)
Factory 1:	A-89, Sector V, District Gautambudh Nagar, Noida-201301, Uttar Pradesh, India
Factory 2 :	A-96, Sector 58, Noida-201301, Uttar Pradesh, India
Factory 3 :	Surajpur, Near Greater Noida, Uttar Pradesh, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Adar Kumar Jain
Designation :	Managing Director
Address :	181, Vaishali, Pitampura, New Delhi -110034, India
Date of Birth/Age :	18.01.1982
Name :	Mr. Nitin Jain
Designation :	Whole Time Director
Address :	181, Vaishali, Pitampura, New Delhi-110034, India
Date of Birth/Age :	01.12.1995
Name :	Mrs. Kanchan Jain
Designation :	Director
Address :	181, Vaishali, Pitampura, New Delhi-110034, India
Date of Birth/Age :	14.01.2002
Name :	Mr. Amit Jain
Designation :	Director
Address :	181, Vaishali, Pitampura, New Delhi-110034, India
Date of Birth/Age :	24.12.2003
Name :	Mr. Paramjeet Singh Barsal
Designation :	Director
Address :	A-80/2, Hari Nagar, New Delhi-110064, India
Date of Birth/Age :	07.05.1947
Date of Appointment :	02.08.2008
Name :	Mr. Sanjay Jain
Designation :	Director
Address :	CD-19, Pitampura, New Delhi-110088, India
Date of Birth/Age :	16.02.1970
Date of Appointment :	02.08.2008
Name :	Mr. Yashpal Malik
Designation :	Director
Address :	H-26, Sector-25, Noida-201301, India
Date of Birth/Age :	14.11.1947
Date of Appointment :	02.08.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2009

Names of Shareholders	No. of Shares
Adarsh Jain	5862
Adar Kumar Jain	177975
Amit Jain	3638
Dinesh Jain	1500
Highsky Finance and Investment Private Limited, India	15000
AK Jain HUF (Karta AK Jain)	26500
Kanchan Jain	4905
Muni Lal Jain	350
Nitin Jain	15265
Nikita Jain	8625
Multitex Filters Limited, India	11250
Adhunik Systems Private Limited, India	875
Frenzy Products Private Limited, India	4000
M.S. Capital Management Services, India	1000
Mehram Exports Private Limited, India	1250
VIK Medtronics Private Limited, India	1250
Garima Gangwal	6000
Hiralal Jain	6375
Reed Engineering Industries Limited, India	13000
Worth Well Mettalican (P) Limited, India	5000
Total	309620

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	17.00
Directors or relatives of directors	83.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and supplier of all types of Industrial Filtration Equipments, Sterlisers, Air and Fluid Handling Equipments and Systems, Air and Water Filtration Equipments and to undertake and execute all types of turnkey projects in the above fields.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Filters Stainers, Skids and Mist. Eliminators etc.	Qty. No	413
Filters Elements and Spares	Qty. No	29260

GENERAL INFORMATION

Bankers :

• State Bank of India, Noida, Uttar Pradesh, India
• Canara Bank, 5-A, Hearld House, Bahadur Shah Zafar Marg, New Delhi-110 002
• Bank of India, Bahadushah Zafar Marg Branch, 217, Hans Bhawan, Bahadushah Zafar Marg, Tilak Bridge, New Delhi-110002, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Cash credit against hypothecation of all current and fixed assets including stock in trade, book debts, personal guarantee of directors	182.509	58.294
Term loan from banks against mortgage of industrial land, building and machinery of Gr. Noida unit	24.383	0.000
Loans from banks against hypothecation of cars	1.383	1.743
Loans against mortgage of residential house of company and directors and personal guarantee of directors	43.786	27.496
Deferred credit payable for purchase of industrial plots	18.892	0.000
Total	270.953	87.533
Unsecured Loan
From directors	2.036	0.000
From companies	7.490	5.559
From shareholders	1.540	1.551
Total	11.066	7.110

Banking Relations :	--
Auditors :
Name :	Shashi Verma and Company Chartered Accountant
Address :	E-20, Lajpat Nagar III, New Delhi-110024, India
Tel. No.:	91-11-29845477/29832913
Fax No.:	91-11-29831814

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.100/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
311320	Equity Shares	Rs.100/- each	Rs.31.132 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		31.132	26.745	25.870
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		205.526	138.878	87.015
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		236.658	165.623	112.885
LOAN FUNDS
1] Secured Loans		270.953	87.533	92.042
2] Unsecured Loans		11.066	7.110	7.051
TOTAL BORROWING		282.019	94.643	99.093
DEFERRED TAX LIABILITIES		6.400	4.044	3.842
TOTAL		525.077	264.310	215.820
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		156.672	65.346	55.335
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.529	0.529	0.029
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	142.854	72.085	107.397
	Sundry Debtors	320.712	318.651	120.956
	Cash & Bank Balances	53.441	41.520	36.424
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.095	75.785	74.445
Total Current Assets		617.102	508.041	339.222
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	145.696	171.687
	Other Current Liabilities	82.442	113.200	174.070
	Provisions	21.088	24.719	4.696
Total Current Liabilities		249.226	309.606	178.766
Net Current Assets		367.876	198.435	160.456
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		525.077	264.310	215.820

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1036.895	1121.242	476.823
		Other Income	18.008	8.609	17.779
		TOTAL (A)	1054.903	1129.851	494.602
Less	EXPENSES
		Cost of raw material	669.172	694.451	318.183
		Manufacturing, administrative and other expenses	285.240	343.298	147.681
		TOTAL (B)	954.412	1037.749	465.864
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		100.491	92.102	28.738
Less	FINANCIAL EXPENSES (D)		26.672	18.202	10.080
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		73.819	73.900	18.658
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.392	3.240	2.795
	PROFIT BEFORE TAX (E-F) (G)		67.427	70.660	15.863
Less	TAX (H)		23.445	24.922	5.960
	PROFIT AFTER TAX (G-H) (I)		43.982	45.738	9.903
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		73.606	27.868	17.965
	BALANCE CARRIED TO THE B/S		117.588	73.606	27.868
	EARNINGS IN FOREIGN CURRENCY		255.310	515.068	227.797
	IMPORTS		114.851	116.085	49.190
	Earnings Per Share (Rs.)		141.27	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.17	4.05	2.00
Net Profit Margin (PBT/Sales)	(%)	6.50	6.30	3.33
Return on Total Assets (PBT/Total Assets}	(%)	8.71	12.32	4.02
Return on Investment (ROI) (PBT/Networth)		0.28	0.43	0.14
Debt Equity Ratio (Total Liability/Networth)		2.24	2.44	2.46
Current Ratio (Current Asset/Current Liability)		2.48	1.64	1.90

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U74899DL1982PLC014716
Name of the company	MULTITEX FILTRATION ENGINEERS LIMITED
Address of the registered office or of the principal place of business in India of the company	217, Hans Bhawan, Singh Zafar Marg, New Delhi-110002, India
Type of charge	Immovable Property
Particular of charge holder	Bank of India, Bahadushah Zafar Marg Branch, 217, Hans Bhawan, Bahadushah Zafar Marg, Tilak Bridge, New Delhi-110002, India
Email	virendradel@gmail.com
Nature of description of the instrument creating or modifying the charge	No Instrument. Oral assent for creation of Equitable Mortgage
Date of instrument Creating the charge	14.05.2010
Amount secured by the charge	Rs.198.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge 100 Percent. Others The said charge is mortgage to collaterally secure following credit facilities granted by the Bank of India to the company:- Fund Based 1. OCC/ODBD - Rs.48.000 Millions Non Fund Based 2. FLC(DA/DP) - Rs.20.000 Millions 3. BG - Rs.130.000 Millions Total - Rs.198.000 Millions
Short particulars of the property charged	I) Equitable mortgage by deposit of title deeds in respect of immovable property of the company being all that piece of land with buildings, sheds and structures standing thereon and embedded machinery II) situated at Industrial Plot No. B-3, Site -IV, Kasna Road, UPSIDC Industrial Area, Greater Noida (UP) admeasuring 12588 square meters.

Fixed Assets:

• Land
• Building
• Flats
• Machinery
• Computer
• Air Conditioner
• Electrical Installation
• Generator
• Office Equipment
• Cycle
• Furniture and Fixtures
• Car
• Scooter

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 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.72.54
Euro	1	Rs.62.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.