MIRA INFORM REPORT

Report Date :

07.09.2011

IDENTIFICATION DETAILS

Name :	AIRO LAM LIMITED
Registered Office :	Survey No. 355, Nananpur Road, N.H No. 8, Village - Dalpur, Taluka Prantij – 383 120, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.10.2007
Com. Reg. No.:	04-52019
Capital Investment / Paid-up Capital :	Rs.55.000 Millions
CIN No.: [Company Identification No.]	U20211GJ2007PLC052019
TAN No.: [Tax Deduction & Collection Account No.]	AHMA07515E
PAN No.: [Permanent Account No.]	AAGCA6219G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of High Pressure Decorative Laminates.
No. of Employees :	90 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 320000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company is progressing well. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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. Bharat Patel
Designation :	Chief Finance Officer
Contact No.:	91-9909954408
Date :	03.09.2011

LOCATIONS

Registered Office :	Survey No. 355, Nananpur Road, N.H No. 8, Village - Dalpur, Taluka Prantij – 383 120, Gujarat, India
Tel. No.:	91-2770-240572 / 73
Mobile No. :	91-9909954408 (Mr. Bharat Patel)
Fax No.:	91-2770-240574
E-Mail :	finance@airolam.com marketing@airolam.com airolam@yahoo.com
Website :	www.airolam.com
Location :	Owned
Branch Office :	Bhuyangdev Char Rasta, Satellite Road, Ahmedabad, Gujarat, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Kamleshbhai Jethabhai Patel
Designation :	Whole Time Director
Address :	At Laxmanpura, Po Goral, Taluka – Idar, Sabarkantha – 383410, Gujarat, India
Date of Birth/Age :	01.07.1974
Date of Appointment :	01.07.2008
DIN No. :	01840272
Name :	Mr. Prafulkumar Devchandbhai Patel
Designation :	Director
Address :	2, Yogi Parivar Bunglows, Mahakali Mandir Road, Mahavirnagar, Himatnagar, Sabarkantha – 383001, Gujarat, India
Date of Birth/Age :	15.10.1965
Date of Appointment :	22.10.2007
DIN No. :	00256551
Name :	Mr. Pravinkumar Nathabhai Patel
Designation :	Managing Director
Address :	At Suryanagar Kampa, Idar, Sabarkantha – 383450, Gujarat, India
Date of Birth/Age :	01.06.1969
Date of Appointment :	01.08.2009
DIN No. :	01840244
Name :	Mr. Bharatbhai Dolabhai Patel
Designation :	Whole Time Director
Address :	At Lamanpura, Po. Goral Ta Idar, Sabarkantha – 383410, Gujarat, India
Date of Birth/Age :	01.06.1972
Date of Appointment :	01.07.2008
DIN No. :	01840296
Name :	Mr. Jashubhai Amichandbhai Patel
Designation :	Director
Address :	5, Yogi Parivar Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383001, Gujarat, India
Date of Birth/Age :	13.12.1977
Date of Appointment :	22.10.2007
DIN No. :	00256318
Name :	Mr. Pravinbhai Amichandbhai Patel
Designation :	Additional Director
Address :	6, Yogi Parivar Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383001, Gujarat, India
Date of Birth/Age :	16.12.1980
Date of Appointment :	01.06.2008
DIN No. :	00256357
Name :	Mr. Utkarshakumar Revabhai Patel
Designation :	Whole Time Director
Address :	1, Yogi Parivar, Near Mahakali Temple, Kanknol Road, Mahavirnagar, Himatnagar, Sabarkantha – 383001, Gujarat, India
Date of Birth/Age :	08.02.1982
Date of Appointment :	01.07.2008
DIN No. :	02022565
Name :	Mr. Babu Devjibhai Patel
Designation :	Whole Time Director
Address :	At and Po. Nava Revas, Ta- Idar, Sabarkantha – 383430, Gujarat, India
Date of Birth/Age :	07.08.1974
Date of Appointment :	01.07 .2008
DIN No. :	02223836
Name :	Mr. Sureshbhai Hansrajbhai Patel
Designation :	Whole Time Director
Address :	C/o. Patel Saw Mill, Mehtapura, Himatnagar, Sabarkantha – 383001, Gujarat, India
Date of Birth/Age :	10.04.1980
Date of Appointment :	01.07.2008
DIN No. :	02223842

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Kamleshbhai Jethabhai Patel	149600
Bharatbha Dolabhai Patel	348600
Pravinkumar Nathabhai Patel	347310
Prafulkumar Devchandbhai Patel	355000
Jasavantbhai Amichandbhai Patel	272800
Utkarshbhai Revabhai Patel	81200
Sureshbhai Hansrajbhai Patel	59000
Aartiben Pravinbhai Patel	54100
Amrutbhai Kodarbhai Patel	93000
Anandkumar Hairbhai Patel	47000
Dahyabhai Becharbhai Patel	70000
Daxeshbha Vasantbhai Raval	261000
Dinaben Jasavantbhai Patel	90600
Girishbhai Ramjibhai Patel	90000
Jagdishbhai Maganbhai Patel	55750
Jasubhai Amichandbhai Patel (HUF)	20000
Jaswantbhai Ramanbhai Patel	10000
Jayanthibhai Dahyabhai Patel	20000
Jayanthibhai Pashabhai Patel	82000
Jiviben Nathabhai Patel	41000
Kalpanaben Utkarshbhai Patel	11400
Manilal Karshanbhai Patel	70000
Nathabhai Girdharbhai Patel	50000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	69.49
Other top fifty shareholders	30.51
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of High Pressure Decorative Laminates.
Exports :
Products :	Decorative Laminates
Countries :	· Bangladesh · Kuwait
Imports :
Products :	Machines
Countries :	· China · Germany
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

PRODUCTION STATUS (As On 31.03.2010)

Particulars	Unit	Installed Capacity
Laminates Sheets	Sheets Per day	3000

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

90 Approximately

Bankers :

· State Bank of India

Industrial Finance Branch, 1^st Floor, Neptune Towe, Annexe, Opp. Gandhidham Railway Station, Ahmedabad – 380 009, Gujarat, India

· State Bank of India

Industrial Finance Branch, Gujarat Bhavan, Opposite M. J Library, Ellisbridge, Ahmedabad – 380 006, Gujarat, India

· Bank of India, Himatnagar

· Kotak Mahindra Bank

· IDBI Bank

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Term loan – Hyp. of P and M etc.
S.B.I. Term Loan A/c. No – 30334327809	63.622	80.825
Working Capital loans
From Bank
S.B.I CC- 30332064952	60.707	50.021
S.B.I. FCNRB	48.298	0.000
Total	172.627	130.846

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Corporates	0.039	1.500
From Shareholders	1.021	1.021
From Trade Deposits	7.235	6.012
From Directors	0.908	1.127
From Others	7.208	6.100
Total	16.411	15.760

Banking Relations :	--
Auditors :
Name :	K. K Patel and Associates Chartered Accountant
Address :	F-51, 2^nd Floor, “Akash Ganga” Complex, Near S T Stand, Himatnagar – 383 001, Gujarat, India
Tel. No.:	91-2772-240499
Mobile No.:	91-9898044121
E-Mail :	Kamleshpatel174@hotmail.com
Pan No. :	AGPPP6687D
Associates :	City Tiles, Himatnagar Line of Business : Manufacturer of Ceramic Tiles

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 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		55.000	55.000	32.045
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.223	20.604	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		80.223	75.604	32.045
LOAN FUNDS
1] Secured Loans		172.627	130.846	36.888
2] Unsecured Loans		16.411	15.760	0.000
TOTAL BORROWING		189.038	146.606	36.888
DEFERRED TAX LIABILITIES		2.666	0.000	0.000
TOTAL		271.927	222.210	68.933
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		101.934	107.293	2.296
Capital work-in-progress		0.000	0.000	42.006
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	120.994	77.911	0.000
	Sundry Debtors	89.152	41.385	0.000
	Cash & Bank Balances	2.172	2.031	4.863
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.281	14.312	22.349
Total Current Assets		226.599	135.639	27.212
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64.745	33.803	2.982
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	2.996	0.875	0.031
Total Current Liabilities		67.741	34.678	3.013
Net Current Assets		158.858	100.961	24.199
MISCELLANEOUS EXPENSES		11.135	13.956	0.432
TOTAL		271.927	222.210	68.933

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	367.567	113.488
		Other Income	1.496	1.135
		TOTAL (A)	369.063	114.623
Less	EXPENSES
		Trading Purchase	5.230	0.000
		Manufacturing and Other expenses	356.192	124.289
		Variations in stocks	(33.600)	(26.621)
		TOTAL (B)	327.822	97.668
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.241	16.955
Less	INTEREST FINANCIAL CHARGES (D)		19.524	7.833
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.717	9.122
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.032	8.362
	PROFIT BEFORE TAX (E-F) (G)		8.685	0.760
Less	TAX (H)		4.066	0.156
	PROFIT AFTER TAX (G-H) (I)		4.619	0.604
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.604	0.000
	BALANCE CARRIED TO THE B/S		5.223	0.604
	IMPORTS
		Raw Materials	58.518	48.203
	TOTAL IMPORTS		58.518	48.203
	Earnings Per Share (Rs.)		0.84	0.11

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.25	0.53	NA
Net Profit Margin (PBT/Sales)	(%)	2.36	0.67	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.64	0.31	NA
Return on Investment (ROI) (PBT/Networth)		0.11	0.01	NA
Debt Equity Ratio (Total Liability/Networth)		3.20	2.40	1.25
Current Ratio (Current Asset/Current Liability)		3.35	3.91	9.03

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions	As on 31.03.2008 Rs. in millions
For Goods	57.659	27.024	0.000
For Expenses	6.889	6.267	0.035
For Capital Goods	0.197	0.512	2.947
Total	64.745	33.803	2.982

TRADE REFERENCES

· Airo Marketing Services Private Limited, Mumbai

· Thansau Decors Private Limited, Mumbai

OPERATION

During the Financial year the Company has achieved turnover of Rs.367.567 millions as against Rs.113.488 millions during the previous year. During the year the Company has earned Net Profit of Rs.4.619 millions as against Rs.0.604 million during the previous year. Barring unforeseen circumstances, the Directors are hopeful to get better performance in the current year.

FORM 8

Corporate identity number of the company	U20211GJ2007PLC052019
Name of the company	AIRO LAM LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 355, Nananpur Road, N.H No. 8, Village - Dalpur, Taluka Prantij – 383 120, Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Others Hypo. of Goods and Assets.
Particular of charge holder	State Bank of India Industrial Finance Branch, 1^st Floor, Neptune Towe, Annexe, Opp. Gandhidham Railway Station, Ahmedabad – 380 009, Gujarat, India
Nature of instrument creating charge	Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the overall limit.
Date of instrument Creating the charge	29.07.2011
Amount secured by the charge	Rs.218.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit : At 3.75% above Base Rate (BR) Team Loan : At 4.25% above Base Rate (BR), with biennial reset. Terms of repayment Cash Credit : 0.25% p.a. on the entire unutilized portion, if average is 60% or less (to be levied half yearly). Term Loan : As per bank's extant instructions. Margin Nature Margin Raw Materials: 25% Stock in Progress: 25% Stores and Consumable: 25% Finished Goods: 25% Receivables(cover period 90 days): 40% Letters of Credit: 15% Extent and operation of the charge All the properties hypothecated and charged to the Bank for reduction in various credit facilities from Rs.256.500 millions to Rs.218.500 millions on renewal of the said credit facilities by the Bank together with interest, commission, costs, charges, expenses and other monies payable by the Company to the Bank. Others Sr. Name of Facilities Existing Proposed 1. Cash Credit 11.00 12.00 2. SLC 1.65 NIL 3. Term Loan 8.00 4.85 4. Letters of Credit 5.00 5.00 Total 25.65 21.85
Particulars of the property charged	· Hypothecation of all present and future Stocks of Raw Materials, stock-in-process, finished goods, packing materials, movable Plant and Machineries, accessories, Consumable Stores and Spares · furniture and fixtures, office equipment, and other movable assets situated or to be situated at Survey No.355, Nananpur Road, N. H. No.8, Village-Dalpur,Tal-Prantij,Dist-Sabarkantha-383120 or wheresoever. · Hypothecation of both present and future book-debts, receivables, outstanding monies, claims, rights, bills, invoices, contracts, insurance policies, guarantees, engagements, securities, investments etc.
Particulars of the present modification	The original charge dated 19/02/2008 being Hypothecation Agreement of Goods and Assets now modified for reduction in various credit facilities from Rs.256.500 millions to Rs.218.500 millions granted by the Bank to the Company together with interest, commission, costs, charges, expenses and other monies payable by the Company to the Bank

FIXED ASSETS

· Factory Building

· Plant and machinery

· Office Building

· Labour quarter

· Laboratory

· Computer

· Furniture and Fixture

· Vehicle

· Office Equipments

· Land

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.46.13
UK Pound	1	Rs.74.18
Euro	1	Rs.64.88

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--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.