MIRA INFORM REPORT

Report Date :

30.09.2011

IDENTIFICATION DETAILS

Name :	AAKASH INSTITUTE DIVISION OF AAKASH EDUCATIONAL SERVICES LIMITED AAKASH EDUCATION SERVICES LIMITED
Registered Office :	Aakash Tower, Plot No.4, MLU Sector – 11, DWARKA , New Delhi – 110075
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.10.2007
Com. Reg. No.:	55-169398
Capital Investment / Paid-up Capital :	Rs. 60.942 Millions
CIN No.: [Company Identification No.]	U80300DL2007PLC169398
TAN No.: [Tax Deduction & Collection Account No.]	DELA21650G
PAN No.: [Permanent Account No.]	AAGCA6863Q
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Leading and Premier Institute in India for Imparting Coaching to Students appearing in entrance Examination of Medical and Engineering Education.
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 680000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company is doing well. 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 :	Aakash Tower, Plot No. 4, MLU Sector – 11, DWARKA, New Delhi – 110075, India
Tel. No.:	91-11-47623456
Mobile No.:	91-9999629991 ( Ms Rawat)
Fax No.:	91-1147623472
E-Mail :	aakashaccounts@yahoo.co.in accounts@aakashinstitute.com iitjee@aakashinstitute.com medical@aakashinstitute.com
Website :	www.aakashinstitute.com
Branch Office/ Information Centre :	LOCATED AT: Delhi – Janakpuri Noida Dehradun – Rajpur Road Mumbai – Nerul Chandigarh Kalu Sarai – Information Centre Delhi- South Extension Part- 1( Medical) Dehradun- Ballapur Chowk Mumbai – Andheri Pune – Wanowrie Amritsar Indore – Information Centre Kota- Information Centre Hyderabad – InformationCentre Rohtak Faridabad Greater Noida Durgapur- Information Centre Ludhiana Mumbai – Thane Panipat Bathinda Bengaluru- Information Centre Hisar Kanpur- Information Centre Delhi – South Extensiuon Part- ll ( Engineering) Jaipur Chennai South Rohtak- Information Centre Patna- Information centre Jalandhar Saharanpur Chennai North Delhi – East Delhi Lucknow Guwahati East Kolkata - Central Ranchi Kanpur Jamshedpur Dibrugarh Delhi – North Delhi ( Engineering) Haldwani Nagpur Delhi- North Delhi ( Medical) Bhubaneswar Guwahati – West Kolkata- North Patna Gurgaon Jammu (Gandhi nagar) Silliguri Bokaro Varanasi Kolkata – South Bhopal Patna ( Engeering) Jammu ( Kachi Chawni)

DIRECTORS

As on 30.09.2010

Name :

Mr. Jagdish Chand Chaudhry

Designation :

Director

Address :

B-8, 1^st Floor, Vasant Marg, , Vasant Vihar, New Delhi- 110057, India

Date of Birth/Age :

01.08.1949

Date of Appointment :

15.10.2007

DIN No.:

00106128

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	U74899DL1994PTC063836	AAKASH INSTITUTE PRIVATE LIMITED	Director	28/12/1994	28/12/1994	-	Active	NO
2	U74999DL2002PTC115326	QUANTASS ASSOCIATES PRIVATE LIMITED	Director	13/05/2002	13/05/2002	-	Active	NO
3	U55101DL2006PTC156777	JAKNAM RESORTS PRIVATE LIMITED	Director	20/12/2006	20/12/2006	-	Strike off	NO
4	U51909DL2006PTC156911	JAKNAM EXPORTS PRIVATE LIMITED	Director	09/01/2007	09/01/2007	-	Strike off	NO
5	U80300DL2007PLC169398	AAKASH EDUCATIONAL SERVICES LIMITED	Managing director	01/04/2008	15/10/2007	-	Active	NO
6	U35122DL2006PTC156761	PRIDE TRANSPORT PRIVATE LIMITED	Director	31/12/2010	31/12/2010	-	Strike off	NO
7	U74999DL2011PTC222467	DESTINATION HOME PRIVATE LIMITED	Director	18/07/2011	18/07/2011	-	Active	NO

Name :

Mr. AAkash Chaudhry

Designation :

Director

Address :

B-8, 3^rd Floor, Vasant Marg, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

11.09.1979

Date of Appointment :

15.10.2007

DIN No.:

00106392

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	U74999DL2002PTC115326	QUANTASS ASSOCIATES PRIVATE LIMITED	Director	13/05/2002	13/05/2002	-	Active	NO
2	U80300DL2007PLC169398	AAKASH EDUCATIONAL SERVICES LIMITED	Whole-time director	01/04/2008	15/10/2007	-	Active	NO
3	U80301DL2010PTC198078	Creat Ed Private Limited	Director	18/01/2010	18/01/2010	-	Active	NO
4	U74999DL2011PTC222467	DESTINATION HOME PRIVATE LIMITED	Director	18/07/2011	18/07/2011	-	Active	NO

Name :

Mr. Kamala Chaudhry

Designation :

Director

Address :

B-8, 1^st Floor, Vasant Marg, , Vasant Vihar, New Delhi- 110057, India

Date of Birth/Age :

27.12.1949

Date of Appointment :

15.10.2007

DIN No.:

00106490

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	U74899DL1994PTC063836	AAKASH INSTITUTE PRIVATE LIMITED	Director	28/12/1994	28/12/1994	-	Active	NO
2	U55101DL2006PTC156777	JAKNAM RESORTS PRIVATE LIMITED	Director	20/12/2006	20/12/2006	-	Strike off	NO
3	U51909DL2006PTC156911	JAKNAM EXPORTS PRIVATE LIMITED	Director	09/01/2007	09/01/2007	-	Strike off	NO
4	U80300DL2007PLC169398	AAKASH EDUCATIONAL SERVICES LIMITED	Director	15/10/2007	15/10/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Chaudhry Chand Jagdish	5914077
Chaudhry Kamla	100
Chaudhry Aashish	100
Chaudhry Minal	100
Chaudhry Askash	179698
Chaudhry Neetu	100
Chaudhry Prashant	100
TOTAL	6094275

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Leading and Premier Institute in India for Imparting Coaching to Students appearing in entrance Examination of Medical and Engineering Education

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank, Ganesh Nagar, New Delhi – 110018, India

· HDFC Bank Limited , HDFC bank Housesenapati Bapat Marg, Lower Parel – West, Mumbai – 400013, Maharashtra

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Secured against hypothecation of Vehicles	6.203	13.409
Total	6.203	13.409
Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Unsecured Loan	0.000	0.000
Total	0.000	0.000

Banking Relations :
Auditors :
Name :	Sunil Vijay and Associates Chartered Accountant
Address :	R-700, New Rajendra Nagar, New Delhi- 110060, delhi, India
PAN.:	AAIFS6442A

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6094275	Equity Shares	Rs.10/- each	Rs. 60.943 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		60.942	60.942	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		111.415	33.463	(0.115)
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		172.357	94.405	0.500
LOAN FUNDS
1] Secured Loans		6.203	13.409	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		6.203	13.409	0.000
DEFERRED TAX LIABILITIES		2.521	0.000	0.000
TOTAL		181.081	107.814	0.385
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		102.689	88.690	0.494
Capital work-in-progress		2.256	0.681	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.977	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	12.909	11.217	0.000
	Cash & Bank Balances	115.613	53.463	1.522
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	125.683	49.712	0.000
Total Current Assets		254.204	114.392	1.522
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.834	7.400	1.991
	Other Current Liabilities	33.592	26.412	0.000
	Provisions	114.026	63.656	0.016
Total Current Liabilities		178.452	97.468	2.007
Net Current Assets		75.753	16.924	(0.485)
MISCELLANEOUS EXPENSES		0.383	0.542	0.376
TOTAL		181.081	107.814	0.385

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income from Operation	853.817	542.223	0.000
		Other Income	1.199	0.784	0.000
		TOTAL	855.016	543.007	0.000
Less	EXPENSES
		Cost of courseware and other services	73.497	49.575	0.000
		Personnel Expenses	249.792	153.045	0.000
		Rent	114.471	83.928	0.000
		Administrative and other operative expenses	65.032	48.998	0.020
		Transportation	8.083	4.621	0.000
		Advertisement and marketing expenses	195.174	123.391	0.000
		Preliminary Expenses	0.159	0.159	0.094
		TOTAL	706.208	463.717	0.114
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		148.808	79.290	(0.114)
Add	INTEREST RECEIVED		7.410	3.019	0.000
Less	FINANCIAL EXPENSES		1.143	2.510	0.001
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		155.075	79.799	(0.115)
Less/ Add	DEPRECIATION/ AMORTISATION		9.048	10.347	0.000
	PROFIT BEFORE TAX		146.025	69.452	(0.115)
Less	TAX		50.288	24.553	0.000
	PROFIT AFTER TAX (G-I)		95.737	44.899	(0.115)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.973	(0.115)	(0.115)
Less	APPROPRIATIONS
		Interim Dividend	4.875	0.000	0.000
		Tax on interim Dividend	0.829	0.000	0.000
		Proposed final Dividend	10.360	9.677	0.000
		Provision for tax on proposed Dividend	1.721	1.645	0.000
		Transferred to general reserve	9.574	4.489	0.000
	BALANCE CARRIED TO THE B/S		97.351	28.973	(0.115)
	EARNINGS IN FOREIGN CURRENCY		9.998	9.677	--
	Earnings Per Share (Rs.)		15.71	7.37	(0.02)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	11.20	8.29	0.00
Net Profit Margin (PBT/Sales)	(%)	17.10	12.81	0.00
Return on Total Assets (PBT/Total Assets}	(%)	40.92	34.20	(5.70)
Return on Investment (ROI) (PBT/Networth)		0.85	0.74	(0.23)
Debt Equity Ratio (Total Liability/Networth)		1.07	1.17	4.01
Current Ratio (Current Asset/Current Liability)		1.42	1.17	0.76

LOCAL AGENCY FURTHER INFORMATION

OPERATION RESULT AND BUSINESS

(Aakash or the Company) along with its divisions Aakash Institute, Aakash IIT-JEE and Aakash Foundations is leading and premier Institute in India for imparting coaching to students appearing in entrance examinations of Medical and Engineering education.

The Company performed and gave excellent results from its first year of operation and touched new heights in coaching industries. The Company now has 18 own centers and 30 franchise centers across India.

For the year ended March 31, 2010, the company earned a total income of Rs 862.426 Millions an increase of 57.95% over previous year’s Rs 546.027 Millions

The operating profit (PBIDTA) amounted to Rs 156.217 Millions (18.11% of the total income) as against Rs 82.310 Millions (15.07% of the total income) in the previous year. The profit before tax (PBT) was Rs 146.025 Millions, an increase of 104.94% over the previous year’s Rs 71.251 Millions.

The net profit of the Company for the year increased to Rs 95.737 Millions(11.10% of the total income) as compared to Rs 44.900 Millions (8.22% of the total income) in the previous year.

FORM 8:

Corporate identity number of the company	U80300DL2007PLC169398
Name of the company	AAKASH EDUCATION SERVICES LIMITED
Address of the registered office or of the principal place of business in India of the company	Aakash Tower, Plot No. 4, MLU Sector – 11, DWARKA , New Delhi – 110075, Delhi, India
This form is for	Creation of Charge
Type of charge	Others
Particular of charge holder	Canara Bank, A-33, Ganesh Nagar, New Delhi- 110018, Delhi, India Email Id: delhi1762@canbank.co.in
Nature of instrument creating charge	NF 722 Deed of Hypothecation Re: Vehicles Dated 19.03.2009 and Resolution Dated 14.03.2009
Date of instrument Creating the charge	19.03.2009
Amount secured by the charge	Rs. 3.875 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate Of Interest : 11.75% p.a Terms of Repayment: The Entire to be repaid in 35 EMIs of Rs. 0.122 Million each commencing from April 2008. Margin : 20% Extent and operation of the charge: None
Short particulars of the property or asset(s) charged (including complete address and location of the property)	ZT54EDNG ELWB CNG STD BUS with wheel base 4760MM , 06+1 TYRE 37 STR 4 (FOUR) Buses M V Rs. 484.500 Millions

FIXED ASSETS:

• Temporary Structure – Canopy
• Plant and Machinery
• Vehicles
• Office Equipment
• Computer, Printer and Software’s
• Furniture, Fixture and Fitttings
• Brand Assets

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.48.92
UK Pound	1	Rs.76.52
Euro	1	Rs.66.64

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.