MIRA INFORM REPORT

Report Date :

27.09.2011

IDENTIFICATION DETAILS

Name :	MARATHON HEATER (INDIA) PRIVATE LIMITED
Registered Office :	24-25, Modern Complex, Bhuwana, Udaipur-313001, Rajasthan
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.03.2008
Com. Reg. No.:	17-026148
Capital Investment / Paid-up Capital :	Rs.3.500 Millions
CIN .:	U31909RJ2008PTC026148
TAN No :	JDHM09136B
PAN No:	AAFCM7344B
Legal Form:	Private Limited Liability Company
Line of Business :	Manufacturing and exporting of cartridge heaters, strip heaters, air heaters, coil heaters, band heaters, flexible heaters, thermocouple, etc.

RATING and COMMENTS

MIRA’s Rating :

Ca (13)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively new company having moderate track. There appears some accumulated losses recorded by the company. However Track relations are reported as fair. Business is active payments are reported to be slow. The company can be considered for business dealings on a secured 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 :	24-25, Modern Complex, Bhuwana, Udaipur-313001, Rajasthan, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	cadeora@gmail.com ARORACS@SIFY.COM
Website :	http://marathonheater.in
Factory :	A-190, Road No.5, MIA, Udaipur-313001, Rajasthan, India
Tel. No.:	91-294-3057700
Fax No.:	91-294-3057750/2492447
E-Mail :	info@marathonheater.in

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Michael Ronald Wrob
Designation :	Director
Address :	1400 Griner, Del Rio Texas-78840
Date of Birth/Age :	14.07.1959
Date of Appointment :	01.05.2008
DIN No :	02146652

Name :	Mr. Vinay Rathi
Designation :	Director
Address :	214 C Sardarpura, Po Shastri Circle, Bhupal Pura, Udiapur-313001, Rajasthan, India
Date of Birth/Age :	13.06.1974
Date of Appointment :	14.03.2008
DIN No :	01429843

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29299RJ2007PTC024278	Anant Instruments India Private Limited	Director	24/04/2007	24/04/2007	21/02/2011	Active	NO
2	U31909RJ2008PTC026148	Marathon Heater (India) Private Limited	Director	14/03/2008	14/03/2008	-	Active	NO
3	U31906RJ2009PTC029936	Accurate Sensing Technologies Private Limited	Director	23/09/2009	23/09/2009	-	Active	NO

Name :	Mr. Virendra Prakash Rathi
Designation :	Director
Address :	214-C, Sardarpura, Udaipur-313001, Rajasthan, India
Date of Birth/Age :	13.10.1948
Date of Appointment :	14.03.2008

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31909RJ1990PTC005414	Pyrotech Control (India) Private. Limited.	Director	17/05/1990	17/05/1990	-	Active	NO
2	U31402RJ1990PTC005590	Tempsens Instruments (India) Private Limited	Managing director	14/09/1990	14/09/1990	-	Active	NO
3	U51101RJ1993PTC007419	Pyrotech Marketing And Projects Private Limited	Director	20/05/1993	20/05/1993	16/03/2011	Active	NO
4	U40109RJ1988PTC011556	Pyrotech Electronics Private. Limited.	Director	30/09/2003	30/09/2003	-	Active	NO
5	U29299RJ2007PTC024278	Anant Instruments India Private Limited	Director	24/04/2007	24/04/2007	18/07/2011	Active	NO
6	U36109RJ2004PTC018899	Pyrotech Workspace Solutions Private Limited	Additional director	12/11/2007	12/11/2007	26/05/2008	Active	NO
7	U31909RJ2008PTC026148	Marathon Heater (India) Private Limited	Director	14/03/2008	14/03/2008	-	Active	NO
8	U31906RJ2009PTC029936	Accurate Sensing Technologies Private Limited	Director	23/09/2009	23/09/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Virendra Prakash Rathi	5000
Vinay Rathi	25000
Marathon Heater USA, USA	171500
Tempsens Instruments India Private Limited, India	60200
Kusum Rathi	84500
Sonia Rathi	3800
Total	350000

Equity Share Breakup

AS ON 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	49.00%
Bodies corporate	17.20%
Directors or relatives of Directors	33.80%
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and exporting of cartridge heaters, strip heaters, air heaters, coil heaters, band heaters, flexible heaters, thermocouple, etc.

GENERAL INFORMATION

Bankers :

State Bank of Bikaner and Jaipur Mewer Industrial Area, Udaipur-313001, Rajasthan, India Sbbj10415@sbbj.co.in

Banking Relations :	--
Auditors :
Name :	Hitesh Bhadada and Associates Chartered Accountant
Address :	26, 1^st Floor, Toran Baori, Near Hotel Sonika, Udaipur-31300, Rajasthan, India
Tel No:	91-294-2417382/2427509
Mob:	91-94141-68681 (Mr. Hitiesh Bhadada)
PAN NO:	AAFFH7730M
SRN of Form 23B:	S03504628

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/- each	Rs.3.500 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		3.559	0.100	0.100
2] Share Application Money		0.000	0.175	0.000
3] Reserves and Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(0.257)	0.000	0.000
NETWORTH		3.302	0.275	0.100
LOAN FUNDS
1] Secured Loans		2.741	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2.741	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6.043	0.275	0.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.787	0.238	0.000
Capital work-in-progress
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.115	0.000	0.000
CURRENT ASSETS, LOANS and ADVANCES
	Inventories	2.034	0.000	0.000
	Sundry Debtors	0.741	0.000	0.000
	Cash and Bank Balances	0.418	0.091	0.100
	Other Current Assets	0.307	0.000	0.000
	Loans and Advances	0.023	0.000	0.000
Total Current Assets		3.523	0.091	0.100
Less : CURRENT LIABILITIES and PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	1.758	0.113	0.053
	Provisions	0.005	0.000	0.000
Total Current Liabilities		1.763	0.113	0.053
Net Current Assets		1.760	(0.022)	0.047
MISCELLANEOUS EXPENSES		0.381	0.059	0.053
TOTAL		6.043	0.275	0.100

PROFIT and LOSS ACCOUNT

	PARTICULARS		31.03.2010
	SALES
		Income	1.819
		Other Income
		TOTAL (A)	1.819
Less	EXPENSES
		Office Expenses
		Administrative Expenses	2.019
		Advertising Expenses
		TOTAL (B)	2.019
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(0.200)
Less	FINANCIAL EXPENSES (D)		0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(0.200)
Less/ Add	DEPRECIATION (F)		0.172
	PROFIT BEFORE TAX (E-F) (G)		(0.372)
Less	TAX (I)		(0.115)
	PROFIT AFTER TAX (G-I) (J)		(0.257)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000
	BALANCE CARRIED TO THE B/S		(0.257)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(14.13)	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	(5.09)	NA	NA
Return on Investment (ROI) (PBT/Networth)		(0.11)	NA	NA
Debt Equity Ratio (Total Liability/Networth)		136.40	41.09	53.00
Current Ratio (Current Asset/Current Liability)		199.83	80.53	188.68

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate Identity Number of the Company	U31909RJ2008PTC026148
Name of the company	MARATHON HEATER (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	24-25, Modern Complex, Bhuwana, Udaipur-313001, Rajasthan, India.
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	State Bank of Bikaner and Jaipur Mewer Industrial Area, Udaipur-313001, Rajasthan, India Sbbj10415@sbbj.co.in
Nature of instrument creating charge	1.Supplements Agreement of Loan cum Hypothecation 2.Memorandum for recording extension of Mortgage by Deposits of Title Deeds covering enhanced limits and/or creation of Equitable Mortgage on Additional Properties for existing limits and Additional facilities. 3.Letter of Confirmation 4.Letter of Arrangement 5.Sanction Letter
Date of instrument Creating the charge	21.03.2011
Amount secured by the charge	2.250 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 4.25% above base rate i.e. 13%p.a. In case of nonpayment of Interest/ installment, penal interest of 1% will be charged on the entire outstanding of term loan for the period of default. Terms of repayment Repayable in 54 monthly installments (1^st 48 installments of Rs.0.042 Millions and last 6 installments of Rs. 0.039 Millions commencing from sept.2011 (with as moratorium period of 6 month Margin As proposed in the projects, the amount incurred till date may be taken as margin Extent and operation of the charge First charges in favour of State Bank of Bikaner and Jaipur to the extent of Term Loan of Rs.2.250 Millions Other All other terms and conditions as per sanction letter and instruments creating charge.
Short particulars of the property charged (Including location of the property)	First exclusive charge by way of hypothecation over the company’s entire plant and machinery and misc. Fixed assets, present and future fixed assets having an aggregate Net Block of Rs.6.302 Millions as on 31.03.2011 Second charge by way of hypothecation by company’s entire current assets including RM, Finished goods, SIP, spares-consumables and receivables, present and future. Second charge on entire fixed assets present and future including equitable mortgage on factory land and building standing in the name of 0Tempsens Instruments (I) Private. Limited situated at A-190, Unit 2, Road No.5, MIA, Udaipur and B-188A, Road No.5, MIA, Udaipur (Unit-1) Personal Guarantee of Shri V.P. Rathi and Shri Vinay Rathi Corporate Guarantee of Tempsens Instruments India Private Limited

Fixed Assets:

· Air Conditioner

· Computer

· Furniture and Fixture

· Office Equipment

· Mobile Phone

· Motor Car

· Motor Cycle

· Telephone

· Office Premises

CMT REPORT (Corruption, Money Laundering and 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.49.62
UK Pound	1	Rs.66.47
Euro	1	Rs.76.68

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION		-
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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		13

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.