MIRA INFORM REPORT

Report Date :

17.05.2011

IDENTIFICATION DETAILS

Name :	ALFA THERM LIMITED
Registered Office :	6, Community Centre, Mayapuri, Industrial Area, Phase 1, New Delhi-110064
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.01.1994
Com. Reg. No.:	55-056781
Capital Investment / Paid-up Capital :	Rs.4.997 Millions
CIN No.: [Company Identification No.]	U74899DL1994PLC056781
TAN No.: [Tax Deduction & Collection Account No.]	DELA04908B
PAN No.: [Permanent Account No.]	AABCA0367Q
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer of Medical, Industrial and General Waste Incinerators, Air Heaters, HVAC Fans, Kerosene Heaters, Bio Toilets and Automatic Oil and Gas Burners.
No. of Employees :	Not Available

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 160000
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 – 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 Office / Factory:	6, Community Centre, Mayapuri, Industrial Area, Phase 1, New Delhi-110064, India
Tel. No.:	91-11-28115222/28116222/28114748/28117391
Fax No.:	91-11-28115396
E-Mail :	alfatherm@vsnl.com psinghal1961@yahoo.com
Website :	http://www.alfathermltd.com http://www.fansandblowers.in

DIRECTORS

As on 30.09.2010

Name :	Mr. Prem Singh Chatha
Designation :	Director
Address :	C-50, Kirti Nagar, New Delhi-110015, India
Date of Birth/Age :	16.03.1947
Date of Appointment :	05.01.1994
Name :	Mr. Swarn Singh Chatha
Designation :	Director
Address :	C-50, Kirti Nagar, New Delhi-110015, India
Date of Birth/Age :	22.06.1953
Date of Appointment :	05.01.1994
Name :	Mr. Harjot Singh Chatha
Designation :	Director
Address :	C-50, Kirti Nagar, New Delhi-110015, India
Date of Birth/Age :	11.08.1972
Date of Appointment :	05.01.1994
Name :	Mr. Aman Chatha
Designation :	Director
Address :	C-50, Kirti Nagar, New Delhi-110015, India
Date of Birth/Age :	15.06.1972
Date of Appointment :	15.04.2005
Name :	Mr. Tajender Kaur Chatha
Designation :	Director
Address :	C-50, Kirti Nagar, New Delhi-110015, India
Date of Birth/Age :	13.01.1955
Date of Appointment :	15.04.2005
Name :	Mr. Daljeet Singh Virk
Designation :	Director
Address :	D-2/2388 Vasant Kunj, New Delhi-110070, India
Date of Birth/Age :	18.04.1954
Date of Appointment :	20.03.2007
Name :	Mr. Kanwar Ranbir Singh
Designation :	Director
Address :	D-1/8, Model Town-III, New Delhi-110009, India
Date of Birth/Age :	10.06.1985
Date of Appointment :	20.03.2007
Name :	Mr. Kulwant Rai
Designation :	Director
Address :	H. No.1/5, Roop Nagar, New Delhi-110007, India
Date of Birth/Age :	10.09.1951
Date of Appointment :	20.03.2007
Name :	Mr. Inderpal Singh Chatha
Designation :	Additional Director
Address :	C-50, Kirti Nagar, New Delhi-110015, India
Date of Birth/Age :	13.1.1985
Date of Appointment :	01.01.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Prem Singh Chatha	141950
Swaran Singh Chatha	231670
Harjot Singh Chatha	66730
Harinder Jeet Singh	300
Daljit Singh Randhwa	300
Kulwant Rai Maini	300
Baldev Singh Kang	300
Tejinder Kaur Chatha	15150
Aman Chatha	33000
Gurinder Jeet Chatha	10000
Total	499700

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.76
Other top fifty shareholders	0.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Medical, Industrial and General Waste Incinerators, Air Heaters, HVAC Fans, Kerosene Heaters, Bio Toilets and Automatic Oil and Gas Burners.

Products :

Product Description	Item Code
Air Heaters	73229010
Incinerators	84171000
Burners	94167000

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity
Air Heater	Nos.	168
Incinerators	Nos.	48
Golf Trolleys	Nos.	5000
Burners	Nos.	750
Bukhari/ Kero Heaters	Nos.	4000

Actual Production:

Particulars	Unit	Actual Production
Air Heater	Nos.	154
Incinerators	Nos.	16
Burners	Nos.	259*
Blower	Nos.	1440**
Bio-Digester	Nos.	7
Bukhari/ Kero Heaters	Nos.	98
Structural Steel Fabrication	Nos.	91788
Spare, Components and Scrape Others	Nos.	--

Note:

• *Including captive consumption 159 Nos.
• **Including captive consumption 130 Nos.

GENERAL INFORMATION

Bankers :

Canara Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Loans from Banks
Cash credit limit from Canara Bank (Against hypothecation of stocks and book debts and collateral security of plant and machinery, land and building )	18.932	24.283
Term loan against vehicles (Against hypothecation of vehicles)	1.783	1.614
Other loans
Loan against machinery (Against hypothecation of machinery.)	1.697	2.228
Total	22.412	28.125

Banking Relations :	--
Financial Institution:	Electronica Finance Limited, 128/A, Plot No.3,Kailashchandra Appartments, Paud Road, Kothrud, Pune-411038, Maharashtra, India
Auditors :
Name :	Pawan Singhal and Company Chartered Accountant
Address :	201, A-1/B-6, Local Shopping Centre, Pankha Road, Janak Puri, New Delhi-110058, India
Tel. No.:	91-11-25502809/25617232 (Office) 91-11-25072657 (Residential)

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
499700	Equity Shares	Rs.10/- each	Rs.4.997 Millions

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
529250	Equity Shares	Rs.10/- each	Rs.5.292 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		4.997	4.997	4.997
2] Share Application Money		2.955	2.955	0.000
3] Reserves & Surplus		32.555	29.028	25.597
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		40.507	36.980	30.594
LOAN FUNDS
1] Secured Loans		22.412	28.125	14.587
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		22.412	28.125	14.587
DEFERRED TAX LIABILITIES		1.681	0.592	1.774
TOTAL		64.600	65.697	46.955
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.989	45.487	40.824
Capital work-in-progress		0.000	0.675	0.000
INVESTMENT		0.325	0.328	0.352
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.026	24.775	8.781
	Sundry Debtors	19.219	15.388	16.548
	Cash & Bank Balances	3.615	2.761	2.736
	Other Current Assets	0.000	0.005	0.004
	Loans & Advances	31.743	26.837	22.456
Total Current Assets		76.603	69.766	50.525
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.914	30.327
	Other Current Liabilities	27.510	13.847	36.844
	Provisions	5.893	6.385	7.902
Total Current Liabilities		63.317	50.559	44.746
Net Current Assets		13.286	19.207	5.779
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		64.600	65.697	46.955

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	102.027	71.287	97.457
		Other Income	8.851	3.176	3.360
		TOTAL (A)	110.878	74.463	100.817
Less	EXPENSES
		Raw material consumed and goods traded	68.577	56.397	62.351
		Purchase of goods traded in	0.453	0.832	2.951
		Decrease in stocks	0.000	0.000	2.795
		Manufacturing expenses	12.907	6.553	5.080
		Administrative expenses	11.733	10.830	11.448
		Selling and distribution expenses	5.975	5.903	6.039
		Provision for diminution in value of L.T. investments	0.003	0.025	0.000
		Increase in stocks	(0.545)	(14.327)	0.000
		TOTAL (B)	99.103	66.213	90.664
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.775	8.250	10.153
Less	FINANCIAL EXPENSES (D)		3.093	2.909	1.378
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.682	5.341	8.775
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.086	1.893	1.473
	PROFIT BEFORE TAX (E-F) (G)		6.596	3.448	7.302
Less	TAX (H)		2.531	1.302	3.254
	PROFIT AFTER TAX (G-H) (I)		4.617	2.146	4.727
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.028	10.597	6.522
	DEFERRED TAX LIABILITY WRITTEN BACK		0.000	1.182	0.087
Less	PROVISION FOR DEFERRED TAX LIABILITY		1.088	0.000	0.678
	SHORT PROVISION OF FBT FOR EARLIER YEARS		0.002	0.000	0.061
Add	EXCESS PROVISION WRITTEN BACK OF FBT		0.000	0.103	0.000
	BALANCE CARRIED TO THE B/S		17.555	14.028	10.597
	EARNINGS IN FOREIGN CURRENCY		17.715	1.347	27.175
	IMPORTS		0.664	1.643	1.460
	Earnings Per Share (Rs.)		9.24	4.29	9.46

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.16	2.88	4.69
Net Profit Margin (PBT/Sales)	(%)	6.46	4.84	7.49
Return on Total Assets (PBT/Total Assets}	(%)	5.17	2.99	7.99
Return on Investment (ROI) (PBT/Networth)		0.16	0.09	0.23
Debt Equity Ratio (Total Liability/Networth)		2.12	2.13	2.13
Current Ratio (Current Asset/Current Liability)		1.21	1.38	1.13

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U74899DL1994PLC056781
Name of the company	ALFA THERM LIMITED
Address of the registered office or of the principal place of business in India of the company	6, Comminuty Centre, Mayapuri, Industrial Area, Phase 1, New Delhi-110064, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Electronica Finance Limited, 128/A, Plot No.3,Kailashchandra Appartments, Paud Road, Kothrud, Pune-411038, Maharashtra, India
Email	finance@elfl.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation dated 9th September 2008
Date of instrument Creating the charge	09.09.2008
Amount secured by the charge	Rs.1.277 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 14.1085% per annum Terms of Repayment To be paid in 48 monthly installments Extent and Operation of the charge First Charge
Short particulars of the property charged	EMTL make CNC Electro Discharge machine model :-Eco cut situated at 32 Km stone, NH-1 Kundli, DISH.Sonepal-131028, Haryana, India

Fixed Assets:

• Land and Building
• Factory Land
• Plant and Machinery
• Vehicles
• Office Equipments
• Software
• Technical Know How

As per website details:

Profile:

Subject, a more than 2 decade old ISO 9001:2000 certified company, is the largest manufacturer of Hospital, Industrial and General Waste Incinerators, Air Heaters, HVAC fans, Bio Toilets and Automatic Oil and Gas Burners. The company was established in 1989 and today, Subject is one of the widely accepted brand for Heating Systems and Incinerators in the Indian as well as global market.

Over 10,000 amongst their satisfied clientele of renowned Industrial Organization in Private as well as Govt. Sectors are spread over to the entire section of India and abroad.

Company Overview:

Subject has the necessary resources and experience to meet current and future challenges faced by engineering industry.

Over the years they have tried to deliver high quality product ensuring Product Satisfaction to all their customers. They have always tried to create innovative and cost-effective solutions for the most challenging environments and needs of the industry.

At Subject, they have a dedicated team of engineers and state of the art manufacturing facility to execute all projects on time. They are backed-up by time dedicated service engineers to provide prompt after sales service all over the country. Over the years, they have invested heavily in building up their capabilities, facilities and equipments in order to offer customers high quality products. This has enabled them to make a reputable position in the industry.

Company History:

Subject established in 1989 started with manufacturing of Steam Boilers IBR / Non IBR, Hot Water Heaters, Thermic Fluid Heaters and Material Handling Equipments. Subject has been a pioneer in providing solutions in Process Heating industry with thousands of installations in government and private sector throughout India and abroad.

In 1994, constitution of the company was changed from Private Limited to Public Limited. In the year 1995, they were the first company in India to manufacture Automatic Oil Burners indigenously. It required extensive tooling in developing more than 30 models of burners. Entire tooling was done in-house by them. Today thousands of Subject Industrial Burners are in operation in India and abroad.

In 1997, Subject Process Heating Division introduced Air Heaters for printing, packaging, food, textile, central heating and pharmaceutical industry. Till date they are pioneers in Air Heaters in India with thousands of installations in various industries for heating applications.

In 1998, Subject formed the Waste Management Division for manufacturing Incinerators and Shredders, the need of the hour for the Indian market and Global Environment. In 2000, they successfully executed their first export order for Incinerators to Germany.

During the 2000's, Subject continued executing Turnkey contracts and developing various products for the areas it had already diversified into. Today Subject has the largest Installations of Incinerators in Bio Medical Waste Common Treatment Facilities in India. The entire medical waste of New Delhi, Mumbai, Kolkata, Agra and more than 35 other cities of India is treated with technology and equipments manufactured and supplied by us. Each and every part of the incinerator is manufactured in-house by them.

Subject is the only company from India to execute Rotary Incinerator Waste Management Project on turnkey basis for complete Hazardous Industrial waste incineration in Saudi Arabia and the largest paper waste incinerator for Medhina, Saudi Arabia.

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.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

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	4
--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	NO
--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.