MIRA INFORM REPORT

Report Date :

25.05.2011

Tel. No.:	91-120-3221819/3221820/3914910-16
Fax No.:	91-120-2423661

IDENTIFICATION DETAILS

Name :	A.K. SYSTEM ENGINEERS PRIVATE LIMITED
Registered Office :	322, NEB Sarai, New Delhi – 110 068
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.01.1985
Com. Reg. No.:	55-019955
Capital Investment / Paid-up Capital :	Rs.3.000 millions
CIN No.: [Company Identification No.]	U74899DL1985PTC019955
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Water, Tea and Coffee Vending Machines and related services.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 23000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered 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

INFORMATION PARTED BY

Name :	Mr. Sahul Khurana
Designation :	Director
Contact No.:	91-9811078486
Date :	23.05.2011

LOCATIONS

Registered Office :	322, NEB Sarai, New Delhi – 110 068, India
Tel. No.:	91-11-41706895
Mobile No.:	91-9811078486, 9899975966 (Mr. Sahul Khurana)
E-Mail :	sahul@gmail.com
Website :	www.altantisplus.com
Area :	1000 sq ft
Location :	Owned
Factory :	B-32, Sector-5, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-3221819/ 3221820/ 3914910-16
Fax No.:	91-120-2423661
Location :	Owned

DIRECTORS

As on 29.09.2010

Name :	Mr. (Col.) Krishan Swarup Khurana
Designation :	Director
Address :	325, Sector – 15A, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India
Date of Birth/Age :	08.11.1934
Date of Appointment :	29.01.1985
DIN No.:	01040497
Name :	Mrs. Shobha Khurana
Designation :	Director
Address :	325, Sector – 15A, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India
Date of Birth/Age :	01.08.1941
Date of Appointment :	29.01.1985
DIN No.:	01972488
Name :	Mr. Sahul Khurana
Designation :	Whole Time Director
Address :	325, Sector – 15A, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India
Date of Birth/Age :	05.02.1965
Date of Appointment :	16.07.1992
DIN No.:	01040417
Name :	Mr. Rahul Khurana
Designation :	Director
Address :	325, Sector – 15A, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India
Date of Birth/Age :	22.07.1963
Date of Appointment :	16.07.1992
DIN No.:	01236604

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Col. K.S. Khurana	203600
Shobha Khurana	20800
Sahul Khurana	72000
Rahul Khurana	3600
Total	300000

As on 29.09.2010

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Water, Tea and Coffee Vending Machines and related services.
Products :	Water Dispensers v Frosty v Fire and Ice v Mega v Classic v Basic v Icy Hot Beverage Dispensers v Cafe Mini v Cafe Plus v Vendor
Imports :
Products :	Raw Materials
Countries :	China
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

No. of Employees :

50 (Approximately)

Bankers :

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v Bank of India, Greater Kailash – II, New Delhi, India

v ICICI Bank Limited

Facilities :

Cash Credit – Rs.28.800 millions

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Overdraft from HDFC Bank Limited against hypothecation of stock and mortgage of land and building of the company	14.993	14.594
ICICI Bank Limited, against hypothecation of car	0.158	0.405
Tata Capital Limited, against hypothecation of ACE	0.000	0.094
HDFC Loan	3.775	4.565
Total	18.926	19.658

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Director’s, Friends and Relatives	5.500	6.000
From Col. K.S. Khurana	0.871	0.000
From Citi Bank	0.132	0.385
From Sahul Khurana	5.745	1.940
Total	12.248	8.325

Banking Relations :	--
Financial Institutions :	Uttar Pradesh Financial Corporation, 14/88, Civil Lines, Kanpur, Uttar Pradesh, India
Auditors :
Name :	Sunil Vijay and Associates Chartered Accountants
Address :	R-700, New Rajinder Nagar, New Delhi – 110 060, India
Tel. No.:	91-11-28743579
Fax No.:	91-11-28743577
E-Mail :	sunilvijay22@rediffmail.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3.000	3.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2.774	1.953
4] (Accumulated Losses)		0.000	0.000
NETWORTH		5.774	4.953
LOAN FUNDS
1] Secured Loans		18.926	19.658
2] Unsecured Loans		12.248	8.325
TOTAL BORROWING		31.174	27.983
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		36.948	32.936
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.923	13.122
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.072	8.572
	Sundry Debtors	15.003	17.881
	Cash & Bank Balances	0.040	0.042
	Other Current Assets	0.000	0.000
	Loans & Advances	4.459	4.787
Total Current Assets		33.574	31.282
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.466	8.982
	Other Current Liabilities	1.656	2.206
	Provisions	0.327	0.280
Total Current Liabilities		8.549	11.468
Net Current Assets		25.025	19.814
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		36.948	32.936

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Sales	55.689	51.529
		Service Income	1.184	1.066
		Rental Income	0.320	0.000
		Foreign exchange fluctuation income	0.054	0.000
		Other Income	0.081	0.026
		TOTAL	57.328	52.621
Less	EXPENSES
		Cost of goods traded and material consumed	44.027	39.099
		Salary and Wages	3.256	3.223
		Contribution to ESI and PF	0.420	0.404
		Advertisement	0.314	0.511
		Telephone	0.292	0.271
		Power and Fuel	0.290	0.284
		Conveyance	0.146	0.154
		Security Charges	0.271	0.316
		Rate Difference/ Discount	0.965	0.644
		Other Expenses	4.977	6.013
		TOTAL	54.958	50.919
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.370	1.702
Less/ Add	DEPRECIATION/ AMORTISATION		1.222	0.972
	PROFIT BEFORE TAX		1.148	0.730
Less	TAX		0.327	0.280
	PROFIT AFTER TAX		0.821	0.450
	Earnings Per Share (Rs.)		2.73	NA

Particulars	31.03.2011 (Approximately)
Sales Turnover	60.000

Expected Sales (2011-2012): Rs.70.000 millions

The above information has been parted by Mr. Sahul Khurana (Director).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	1.43	0.86
Net Profit Margin (PBT/Sales)	(%)	2.06	1.42
Return on Total Assets (PBT/Total Assets}	(%)	2.52	1.64
Return on Investment (ROI) (PBT/Networth)		0.20	0.15
Debt Equity Ratio (Total Liability/Networth)		6.88	7.97
Current Ratio (Current Asset/Current Liability)		3.93	2.73

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from Y 36, Okhla Industrial Area, Phase II, New Delhi – 110 020 to the present address w.e.f. 20.02.2011.

FORM 8:

Corporate identity number of the company	U74899DL1985PTC019955
Name of the company	A.K. SYSTEM ENGINEERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	322, NEB Sarai, New Delhi – 110 068, India E-Mail: sahulk@gmail.com
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds.
Date of instrument Creating the charge	25.04.2011
Amount secured by the charge	Rs.28.800 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: Working Capital facility shall be payable on Demand Term Loan facility shall be repayable in suitable installments. Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as security for the due repayment of Rs.28.800 millions granted by bank to Vending Updates India Private Limited ("the borrower") including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc.
Short particulars of the property charged	Immovable property being Plot No.23, Block - B Sector - 88, Phase - II, Noida, Uttar Pradesh.

FIXED ASSETS:

v Land

v Building

v Furniture and Fixture

v Computer

v Machinery

v Fans

v Vehicles

v Typewriter

v Cycle

v Generator

v Office Equipments

v Refrigeration

v Pager

v Air Conditioner

v Water Cooler

v Mobile Phone

v Tempo

v Water Purifier

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.45.25
UK Pound	1	Rs.72.83
Euro	1	Rs.63.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		32

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.