MIRA INFORM REPORT

Report Date :

10.04.2012

IDENTIFICATION DETAILS

Name :	AKAR IMPEX PRIVATE LIMITED
Registered Office :	205 Shantidoot Apartment, 18, Vasundhara Enclave, New Delhi – 110 096, Delhi
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.03.1986
Com. Reg. No.:	55 – 23634
Capital Investment / Paid-up Capital :	Rs.1.528 Millions
CIN No.: [Company Identification No.]	U74899DL1986PTC023634
TAN No.: [Tax Deduction & Collection Account No.]	DELA12348A
PAN No.: [Permanent Account No.]	AAACA2253J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Waste Water Treatment Plants and Sewage Treatment Plants.
No. of Employees :	52 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 27084
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 dealing 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. Lokesh
Designation :	Accounts Executive
Contact No.:	91-120-4526666
Date :	17.03.2012

LOCATIONS

Registered Office :	205 Shantidoot Apartment, 18, Vasundhara Enclave, New Delhi – 110096, Delhi, India
Mobile No. :	91-9811421458 (Mr. Vaidya Taral)
E-Mail :	akagr@bol.net.in akarimpex@gmail.com
Website :	www.akarimpex.com
Area :	1000 sq. ft.
Location :	Owned
Head Office :	E-9, Sector-6, Noida-201301, Uttar Pradesh, India.
Tel. No.:	91-120–4526666, 4255580 / 82/83
Fax No.:	91-120–4256632/2422541
E-Mail :	info@akarimpex.com taralkumar@akarimpex.com akarimpex@hotmail.com akarimpex@gmail.com akagr@bol.net.in akar@touchtelindia.net akarimpex@yahoo.co.in
Website :	www.mobilwaterplants.com www.wastewater-treatment-plants.com
Branch :	Pune – Nagar Road, Opposite Kamal Motors, Wagholi, Pune 412207, Maharashtra, India

DIRECTORS

AS ON 26.09.2011

Name :	Mr. Vaidya Ganesh Ratnakar
Designation :	Director
Address :	205, Shantidoot Apartment, 18, Vasundhra Enclave, Delhi – 110 096, India
Date of Birth/Age :	15.11.1944
Date of Appointment :	17.03.1986
Name :	Mr. Malhotra Lal Jawahar
Designation :	Director
Address :	205, Shantidoot Apartment, 18, Vasundhra Enclave, Delhi – 110 096, India
Date of Birth/Age :	29.10.1939
Date of Appointment :	20.03.1986
Name :	Mr. Vaidya Taral
Designation :	Director
Address :	205, Shantidoot Apartment, 18, Vasundhra Enclave, Delhi – 110 096, India
Date of Birth/Age :	03.11.1967
Date of Appointment :	28.06.2001

KEY EXECUTIVES

Name :	Mr. Lokesh
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2011

Names of Shareholders	No. of Shares
R.G. Vaidya	50450
Sharda Vaidya	4950
J.L. Malhotra	13400
Shashi Bhanu	100
Taral Vaidya	68000
Ramesh Chandra	6000
Avani Vaidya	2750
Sandeep Malhotra	3600
Sanjeev Malhotra	3600
Total	152850

AS ON 26.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturers of Waste Water Treatment Plants and Sewage Treatment Plants
Products :	v Mobile Waste Water Treatment systems. v Packaged Akar Dynamic Bio-Reactor Systems. v Surface Aerators. v Floating Aerators. v Mixers / Agitators. v All types of Screens. v Diffused Aeration Systems. v Sludge Thickeners. v Filter Presses. v Clarifiers Mechanisms v All Types of Scrapers v Oil Removal Systems v Iron Removal Systems v Dissolved Air Floatation system
Exports :
Countries :	Dubai, Jordan, Kuwait
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Suppliers :

· Dabur India, Nepal

· K C C, Kuwait

· Master Textile, Pakistan

Customers :

· Builders / Hotels

· Beta Machines, Noida

· Pharmatech Filtration, Delhi

No. of Employees :

52 Approximately

Bankers :

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

v ICICI Bank

v Ing Vysya Bank Limited, A-361, Sector – 19, Noida – 201301, Uttar Pradesh, India

v Ing Vysya Bank Limited, 2/10, WHS, Kirti Nagar, New Delhi 110015, Delhi, India

Facilities :

Rs. In Millions

Secured Loans :	31.03.2011	31.03.2010
ING Vysya Bank Limited - Cash Credit (Secured by hypothecation of stock and Equitable Mortgage of Land and Building and Guaranteed by the two Directors)	5.662	5.486
Bajaj Finance Limited – Demand Loan (guaranted by the two director)	1.445	0.000
ING Vysya Bank Limited – Term Loan (secured by hypothecation of car and guaranted by the one director)	0.600	0.000
HDFC Bank (guaranted by the two director)	0.399	0.000
Total	8.106	5.486

Unsecured Loans :	31.03.2011	31.03.2010
From Directors	0.866	0.187
From Shareholders	0.225	0.125
From Others	0.030	0.030
Total	1.121	0.342

Banking Relations :	-
Auditors :
Name :	Agarwal Anoop and Associates Chartered Accountants
Address :	37, Chawla Complex, A-215, Shakarpur, Vikas Marg, Delhi – 110 092, India
Pan No.:	AAFPA8126Q
Tel No.:	91-11-22500348
Fax No. :	91-11-22520449
Memberships :	· Confederation of Indian Industry (CII) · Federation of Indian chambers of commerce and Industry (FICCI) · Engineering Export Promotion Council (EEPC)

CAPITAL STRUCTURE

AS ON 26.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- Each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
152850	Equity Shares	Rs.10/- Each	Rs.1.528 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1.528	1.528	1.528
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.243	4.283	3.333
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.771	5.811	4.861
LOAN FUNDS
1] Secured Loans		8.106	5.486	4.303
2] Unsecured Loans		1.121	0.342	0.592
TOTAL BORROWING		9.227	5.828	4.895
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		15.998	11.639	9.756
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.345	5.364	1.326
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.024	0.025	0.026
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.038	4.600	3.143
	Sundry Debtors	5.729	7.297	5.298
	Cash & Bank Balances	3.008	2.394	2.034
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.308	2.313	4.049
Total Current Assets		19.083	16.604	14.524
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.276	4.855	1.443
	Current Liabilities	5.320	4.579	3.197
	Provisions	0.858	0.920	1.480
Total Current Liabilities		9.454	10.354	6.120
Net Current Assets		9.629	6.250	8.404
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		15.998	11.639	9.756

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	20.925	15.897	21.877
		Contract and Business Receipts	4.985	9.572	2.389
		Other Income	1.748	1.536	0.722
		TOTAL (A)	27.658	27.005	24.988
Less	EXPENSES
		Cost of Goods Manufactured	11.809	11.879	12.447
		Contracts Charges Paid	2.970	4.935	2.449
		Payment to and Provision for Employees	5.253	3.882	3.141
		Administrative Expenses	4.871	3.866	4.535
		TOTAL (B)	24.903	24.562	22.572
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.755	2.443	2.416
Less	FINANCIAL EXPENSES (D)		1.074	0.765	0.989
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.681	1.678	1.427
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.308	0.242	0.281
	PROFIT BEFORE TAX (E-F) (G)		1.373	1.436	1.146
Less	TAX (I)		0.413	0.486	0.470
	PROFIT AFTER TAX (G-I) (J)		0.960	0.950	0.676
	Earnings Per Share (Rs.)		6.28	22.00	4.42

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.47	3.52	2.70
Net Profit Margin (PBT/Sales)	(%)	6.56	9.03	5.24
Return on Total Assets (PBT/Total Assets}	(%)	5.40	6.54	7.23
Return on Investment (ROI) (PBT/Networth)		0.20	0.25	0.23
Debt Equity Ratio (Total Liability/Networth)		2.75	2.78	2.26
Current Ratio (Current Asset/Current Liability)		2.02	1.60	2.37

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year company has earned a net profit of Rs.0.960 millions after providing depreciation of Rs.0.306 million. Net Provision for taxation for Rs. 0.412 million.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1986PTC023634
Name of the company	AKAR IMPEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	205 Shantidoot Apartment, 18, Vasundhara Enclave, New Delhi – 110 096, Delhi, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Floating charge Others
Particular of charge holder	Ing Vysya Bank Limited, A-361, Sector – 19, Noida – 201301, Uttar Pradesh, India Email: cms@companiesinn.com
Nature of instrument creating charge	Supplemental Facility Cum Hypothecation Agreement. Letter of Continuity.
Date of instrument Creating the charge	10.10.2011
Amount secured by the charge	Rs. 18.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC : IVBR+3.75% BG : Commission 1% Terms of repayment CC : On Demand BG : 24 months Margin CC : 25% on stocks and 35% on book debts. BG : 25% with due noting of lien. Extent and operation of the charge First charge on the stocks and the book debts of the company both present and future. Fist charge on the immovable property of the company.
Short particulars of the property charged (Including location of the property)	All the stocks and the book debts of the company both present and future. The immovable property of the company situated at Industrial Property No.E-9,Sector-9,Noida.
Particulars of the present modification	The limit has been enhanced from Rs.15.000 millions to Rs.18.000 millions as follows: Limit Existing Modified (Rs. in millions) CC 10.000 12.000 BG 5.000 6.000 The hypothecation on the assets and EM on the immovable property of the company extended to the enhanced limit.

FIXED ASSETS:

v Land and Building

v Land at Sitarganj

v Building at Noida

v Building at Sitarganj

v Plant and Machinery

v F. Fighting Equipment

v Office Equipment

v Testing Equipment

v Books

v Electric Fitting

v Loose Tools

v Typewriter

v Computer

v Vehicles

v Furniture and Fixture

v Air Conditioner

v Mobile

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

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.51.27
UK Pound	1	Rs.81.38
Euro	1	Rs.67.01

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	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.