MIRA INFORM REPORT

Report Date :

08.02.2012

IDENTIFICATION DETAILS

Name :	HINDUSTAN AERONAUTICS LIMITED
Registered Office :	15/1, Cubbon Road, Post Box No. 5150, Bangalore – 560 001, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.08.1963
Com. Reg. No.:	08-001622
Capital Investment / Paid-up Capital :	Rs.1205.000 millions
CIN No.: [Company Identification No.]	U35301KA1963GOI001622
TAN No.: [Tax Deduction & Collection Account No.]	BLRB00692G
PAN No.: [Permanent Account No.]	AAACB5987A
Legal Form :	Government of India fully liable of the debts of this company.
Line of Business :	Manufacturer of Upgrade and Overhaul of Fighters, Trainers, Helicopters etc.
No. of Employees :	35000 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (80)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 389808896
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company of government of India. Financial positions of the company is sound. The company is doing well. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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. Chatterjee
Designation :	Finance Department
Contact No.:	91-80-22320358

LOCATIONS

Registered/ Corporate Office :	15/1, Cubbon Road, Post Box No. 5150, Bangalore – 560 001, Karnataka
Tel. No.:	91-80-22266901/ 8758/ 22865197/ 1258 / 8629/ 22866701/ 902-908/ 4636 / 22864930 / 22866578/ 22320701/ 22320903/ 22320376/ 22320001 / 22320358 / 22320008
Fax No.:	91-80-22268758 / 22577533 / 22867140 / 22862334 / 22867361 / 22865275 / 22320140 / 22320361
E-Mail :	root@bnghal.kar.nic.in marketing@hal-india.com cosec@hal-india.com projects@hal-india.com
Telex	845-2266
Telegram	HAL Bangalore
Website :	www.hal-india.com
Area :	4126 acres
Location :	Owned
Factory :	Located at : v Chakeri, P. B. No. 225, Kanpur - 208 008, Uttar Pradesh, India v Bangalore v Hyderabad v Koraput v Nashik v Korwa Engine Division: Bangalore Complex, P. O. Bag # 9310, Old Madras Road, Bangalore - 560 093, Karnataka, India Tel. No. 91-80-2526 5201 / 2528 3117 Fax No. 91-80-2527 9564 Design Complex Vimanapura, P. B. No. 1789, HAL Complex, Bangalore - 560 017, Karnataka, India Tel. No. 91-80-2526 5201 / 1020 Contact Person: Dr. C. R. Ramanja Char (General Manager)
Plant :	Engine Division – Koraput, P.O. Sunabeda – 763 002, District Koraput, Orissa, India
Tel. No. :	91-6853-220200
Fax No. :	91-6853-220004/220217
Overseas Office :	v Room No. 602, India House High Commission of India, Aldwych London WC2B, 4NA, United Kingdom Tel. No. 0044 – 171 – 497 – 2360 / 81 – 958 – 1826 Fax No. 0044 – 171 – 497 – 8398 Contact Person: Mr. Kanakappa, Resident Manager v Embassy of India, 6/8 Ulitsa Obukha, Moscow CIS, Moscow Tel. No. 007 – 095 – 2977523 / 095 – 1430320 Fax No. 007 – 095 – 9752337 Contact Person: Mr. R. Varadarajan, Resident Manager
Regional Office :	v No. 101, Aurbindo Place, Hauz Khas, New Delhi – 110 016, India Tel. No. 91-11-26514604 Fax No. 91-11-26864683 Contact Person: Gp. Capt. M. S. Shukla (Retd.), Resident Manager v New Kamani Chambers, 32, Ramjibhai Kamani Marg, Ballard Estate, Mumbai – 400 018, Maharashtra, India Tel. No. 91-22-2261 0329 / 2261 6276 Fax No. 91-22-2266 4890 Contact Person: Mr. Harish Chandra, Resident Manager v No. 9, SAIT Colony, 2^nd Street, Ground Floor, Egmore, Chennai – 600 008, Tamil Nadu, India Tel. No. 91-44-2822 4982 Fax No. 91-44-2828 4180 Contact Person: Mr. S. Ramachandran, Resident Manager v HAL Bhavan, D. No. 49-22-4, Near Shankar Matham, Lalitanagar, Vishakhapatnam – 530 016, Andhra Pradesh, India Tel. No. 91-891-22554376 Fax No. 91-891-22495248 Contact Person: Mr. C. Patnaik, Officer-in-Charge v Secretariat Contact Person: Mr. Ashok Tandon, Company Secretary Tel. No. 91-80-2286 6001 Fax No. 91-80-2286 8758 / 2286 7533
Corporate Communications :	Chief of Media Communications and Official Spokesperson
Address :	15/1, Cubbon Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22868629
Fax No.:	91-80-22862334
E-Mail :	cmc@hal-india.com
Marketing :	GM (Marketing ) Hindustan Aeronautics Limited
Address :	15/1, Cubbon Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22865197
Fax No.:	91-80-22867140
E-Mail :	marketing@hal-india.com
Business Development :	GM (Projects) Hindustan Aeronautics Limited
Address :	15/1, Cubbon Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22864930
Fax No.:	91-80-22867361
E-Mail :	Projects@hal-india.com
Customer Services :	ED (Customer Service and QA) Hindustan Aeronautics Limited
Address :	15/1, Cubbon Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22866578
Fax No.:	91-80-22865275
E-Mail :	Customerservice@hal-india.com
Suppliers :	GM (Integrated Material Management)
Address :	15/1, Cubbon Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22860292
Fax No.:	91-80-22867234
E-Mail :	imm@hal-india.com
Personnel and Administration:	Executive Director (Human Resource)
Address :	15/1, Cubbon Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-22862107
Fax No.:	91-80-22863432
Recruitment :
Tel. No.:	91-80-22861917
Fax No.:	91-80-22863432
E-Mail :	recruitment@hal-india.com

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Ashok Nayak
Designation :	Chairman
Address :	106-10th Cross, Indiranagat 1st Stage, Bangalore- 560038, Karnataka, Indian
Date of Birth/Age :	24.10.1951
Date of Appointment :	01.04.2009
Din No.:	01621890

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
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Whole-time director	01-04-09	01-07-07	-	Active	NO
U35303KA2005PTC037539	Snecma Hal Aerospace Private Limited	Nominee director	28-09-07	28-09-07	-	Active	NO
U74999KA2008PTC044972	Hatsoff Helicopter Training Private Limited	Director	16-01-08	16-01-08	15-04-09	Active	NO
U93000KA2008PLC046588	Tata HAL Technologies Limited	Director	28-05-08	28-05-08	08-06-11	Active	NO
U35303KA1994PLC016219	Indo-Russian Aviation Limited	Nominee director	15-04-09	15-04-09	-	Active	NO

Name :	Mr. Dhulappa Shivamurti
Designation :	Whole-time Director
Address :	SOQ-7, Hal Senior Officers Colony, Old Madras Road, Bangalore- 560093, Karnataka, India
Date of Birth/Age :	10.01.1956
Date of Appointment :	28.10.2005
Din No.:	00098231

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
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Whole-time director	28-10-05	28-10-05	03-03-11	Active	NO
U72200KA1993PLC013983	Baehal Software Limited	Director	30-06-09	01-04-09	03-03-11	Active	NO
U35303KA1994PLC016219	Indo-Russian Aviation Limited	Nominee director	15-04-09	15-04-09	-	Active	NO
U73100KA2007PTC042634	HAL-Edgewood Technologies Private Limited	Nominee director	14-08-09	14-08-09	-	Active	NO

Name :	Mr. Naresh Agarwal
Designation :	Whole-time director
Address :	SOQ-4, Hal Senior Officers Colony, Old Madras Road, Bangalore- 560093, Karnataka, India
Date of Birth/Age :	16.06.1951
Date of Appointment :	01.05.2008
Din No.:	01246449

Name :	Mr. Prakash V Deshmukh
Designation :	Managing Director
Address :	MIG Cottage, Hal Township, Ojhar Township PO, Nasik- 422207, Maharashtra, India
Date of Birth/Age :	07.11.1952
Date of Appointment :	01.10.2008
Din No.:	02376494

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
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Managing director	01-10-08	01-10-08	-	Active	NO
U35303KA1994PLC016219	Indo-Russian Aviation Limited	Director	01-10-08	01-10-08	-	Active	NO
U29200KA2007PLC043691	Infotech HAL Limited	Nominee director	16-04-09	16-04-09	-	Active	NO
U74999KA2008PTC044972	Hatsoff Helicopter Training Private Limited	Nominee director	08-06-11	08-06-11	-	Active	NO

Name :	Mr. Salil Kumar Jha
Designation :	Director
Address :	D -1, Hal Township, Faizabad Road, Lucknow- 226019, Uttar Pradesh, india
Date of Birth/Age :	18.07.1957
Date of Appointment :	01.01.2009
Din No.:	02417261

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
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Managing director	01-01-09	01-01-09	-	Active	NO
U32204DL2007PLC158372	Samtel Hal Display Systems Limited	Director	23-09-09	01-01-09	-	Active	NO
U35303KA2007PTC042680	HALBIT Avionics Private Limited	Nominee director	15-04-09	15-04-09	14-08-09	Active	NO

Name :	Mr. R Srinivasan
Designation :	Managing Director
Address :	No. 97, 16^th Main Road, Koramangala 4^th Block, Bangalore- 560034, Karnataka, India
Date of Birth/Age :	19.05.1951
Date of Appointment :	22.06.2009
Din No.:	02715459

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
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Director	17-09-10	22-06-09	01-06-11	Active	NO
U74999KA2008PTC044972	Hatsoff Helicopter Training Private Limited	Nominee director	14-08-09	14-08-09	08-06-11	Active	NO
U35303KA2007PTC042680	Halbit Avionics Private Limited	Nominee director	14-08-09	14-08-09	08-06-11	Active	NO

Name :	Mr. Rajan P Soundara
Designation :	Whole- time director
Address :	A2-101, Everest Apartment, 8^th Mainroad, Malleshwaram, Bangalore-560003, Karnataka, India
Date of Birth/Age :	11.05.1953
Date of Appointment :	01.08.2009
Din No.:	02639746

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
U35303KA2005PTC037539	Snecma Hal Aerospace Private Limited	Director	01-04-09	01-04-09	-	Active	NO
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Managing director	17-09-10	01-08-09	-	Active	NO
U35303KA2007PTC042680	Halbit Avionics Private Limited	Nominee director	14-08-09	14-08-09	-	Active	NO
U72200KA1993PLC013983	Baehal Software Limited	Director	06-08-10	14-08-09	-	Active	NO
U74999KA2008PTC044972	Hatsoff Helicopter Training Private Limited	Nominee director	07-07-10	07-07-10	-	Active	NO
U29253KA2010PTC054509	International Aerospace Manufacturing Private Limited	Director	16-07-10	16-07-10	-	Active	NO
U29199KA2010PLC056091	Multirole Transport Aircraft Limited	Director	01-12-10	01-12-10	-	Active	NO
U93000KA2008PLC046588	Tata HAL Technologies Limited	Director	08-06-11	08-06-11	-	Active	NO

Name :	Mr. D Balasunder
Designation :	Managing Director
Address :	No. 966, Hal III Stage, 1^st Block, III Cross, New Thippasandra, Bangalore-560075, Karnataka, India
Date of Birth/Age :	16.08.1951
Date of Appointment :	22.03.2010
Din No.:	03034333

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
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Managing director	22-03-10	22-03-10	-	Active	NO
U29253KA2010PTC054509	International Aerospace Manufacturing Private Limited	Director	16-07-10	16-07-10	-	Active	NO
U35303KA2007PTC042680	Halbit Avionics Private Limited	Nominee director	08-06-11	08-06-11	-	Active	NO

Name :	Mr. Prem Kumar Kataria
Designation :	Director (Part – Time Official)
Address :	805, Setctor B- IX, Vasant Kunj, New Delhi-110070, India
Date of Birth/Age :	01.05.1960
Date of Appointment :	12.07.2010
Din No.:	03175921

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
U35100MH1934GOI002079	Mazagon Dock Limited	Director	12-07-10	12-07-10	-	Active	NO
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Director	12-07-10	12-07-10	-	Active	NO
U63032GA1967GOI000077	Goa Shipyard Limited	Director	12-07-10	12-07-10	-	ACTIVE	NO

Name :	Mr. Vinod Kumar Misra
Designation :	Director (Part- Time Non- Official)
Address :	56/1, Friends Colony (East), New Delhi-110065, India
Date of Birth/Age :	24.06.1947
Date of Appointment :	11.11.2009
Din No.:	01641492

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
U35100MH1934GOI002079	Mazagon Dock Limited	Director	12-07-10	12-07-10	-	Active	NO
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Director	12-07-10	12-07-10	-	Active	NO
U63032GA1967GOI000077	Goa Shipyard Limited	Director	12-07-10	12-07-10	-	Active	NO

Name :	Mr. Niranjan K Naik
Designation :	Director (Part – Time Non-Official)
Address :	Flat No. 804, “A” Wing, “Gundecha Heights”, L.B.S. Marg, Kanjur Marg (West), Mumbai-400078, Maharashtra, India
Date of Birth/Age :	20.06.1944
Date of Appointment :	11.11.2009
Din No.:	028935379

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
U27100WB2010PTC140961	Shree Omkar Steel and Power Private Limited	Director	12-01-10	12-01-10	-	Active	NO
U45400WB2009PTC132074	Bajarangbali Infracon Private Limited	Additional director	26-03-10	26-03-10	-	Active	NO
U27200WB2010PTC148076	Shree Amr Ferro Alloys Private Limited	Director	17-05-10	17-05-10	-	Active	NO
U27106WB2011PTC157251	Shree Psp Ferro Alloys Private Limited	Director	13-01-11	13-01-11	-	Active	NO
U27106WB2011PTC160780	Sharma Alloys Private Limited	Director	15-03-11	15-03-11	-	Active	NO

Name :	Mr. S Ravi
Designation :	Director
Address :	D -218, Saket, New Delhi-110017, India
Date of Birth/Age :	12.07.1955
Date of Appointment :	14.09.2006
Din No.:	00009790

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
U65990MH1993GOI075578	IDBI Capital Market Services Limited	Director	12-07-00	12-07-00	-	Active	NO
L74899DL1993PLC053677	IFCI Limited	Director	01-10-01	01-10-01	16-10-08	Active	NO
U67110MH2000PTC129483	Principal Trustee Company Private Limited	Director	05-05-04	05-05-04	18-12-06	Active	NO
L52320MH1941PLC003494	Batliboi Limited	Nominee director	03-09-04	03-09-04	15-05-08	Active	NO
U40109AP1992PLC014937	Spectrum Power Generation Ltd.	Nominee director	09-05-05	09-05-05	28-08-08	Active	NO
L63010GJ1992PLC018106	Gujarat Pipavav Port Limited	Nominee director	21-05-05	21-05-05	26-02-09	Active	NO
L65922MH1989PLC052257	LIC Housing Finance Ltd	Director	26-06-05	26-06-05	-	Active	NO
L99999MH1962PLC012542	Mahindra Ugine Steel Company Limited	Director	29-07-05	29-07-05	-	Active	NO
U65999DL2000PLC103177	IDBI Homefinance Limited	Director	11-08-06	30-01-06	01-09-10	Amalgamated	NO
L13100KA1976PLC002974	Kiocl Limited	Director	15-04-06	15-04-06	14-04-09	Active	NO
U35301KA1963GOI001622	Hindustan Aeronautics Limited	Director	14-09-06	14-09-06	13-09-09	Active	NO
U65991MH2002GOI137868	Uti Trustee Company Private Limited	Director	26-09-07	29-11-06	-	Active	NO
U74210DL1999PTC098637	Ravi Rajan And Company Private Limited	Director	29-09-08	16-10-07	28-10-10	Active	NO
L74899DL1964GOI004281	Bharat Heavy Electricals Limited	Additional director	10-03-11	29-11-07	-	Active	NO
U67120MH2005PLC157556	Inter-Connected Stock Exchange Of India Limited	Director	30-01-08	30-01-08	21-11-09	Active	NO
U74140DL2008PTC178279	S Ravi Financial Management Services Private Limitd	Director	19-05-08	19-05-08	-	Active	NO
L27100AP1989PLC010122	Zenotech Laboratories Limited	Director appointed in casual vacancy	17-10-08	17-10-08	31-12-08	Active	NO
U74899DL1993PLC054259	Religare Housing Development Finance Corporation Limited	Director	23-09-09	24-06-09	-	Active	NO
U45203KA2009PTC050441	GMR Chennai Outer Ring Road Private Limited	Director	11-08-10	13-07-10	-	Active	NO
U74999MH2005PLC155683	Sme Rating Agency Of India Limited	Director	29-09-10	03-09-10	-	Active	NO
U85110KA1995PLC017248	Canbank Venture Capital Fund Limited	Additional director	25-11-10	25-11-10	-	Active	NO

Name :	Mr. Manoj Saunik
Designation :	Director
Name :	Mr. V V R Sastry
Designation :	Director
Name :	Mr. Ajay Shankar
Designation :	Director
Name :	Mr. V M Chamola
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ashok Tandon
Designation :	Company Secretary
Address :	SOQ-3, Hal Senior Officers Colony, Old Madras Road, Bangalore- 560093, Karnataka, India
Date of Birth/Age :	26.04.1955
Date of Appointment :	27.09.1995
Name :	Mr. Ranjan Chatterjee
Designation :	Joint Secretary
Name :	Mr. Anuradha Mitra
Designation :	Joint Secretary
Name :	Mr. Chatterjee
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.08.2010

Names of Shareholders	No. of Shares
Ashok Nayak	10
Dhlulappa Shivamurti	10
R K Singh	50
Manoj Saunik	10
P.K. Katria	10
N C Agarwal	10
President of India	120499900
Total	120500000

Equity Share Breakup (Percentage of Total Equity)

AS ON 31.03.2009

Category	Percentage
Government (Central and State )	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Upgrade and Overhaul of Fighters, Trainers, Helicopters etc.

Products:

Item code No.	Product Description
8802.20	Fighter, Transport and Trainer Aircraft
8802.11	Helicopters
8803.30	Parts of Aircraft and Helicopters

· Aircrafts of Russian Origin

· Aircrafts of Western Origin

· Helicopters

· Communication/ Navigation Equipments

· Advanced Communication Equipments

· Accessories for Aircraft Helicopters and Aeri Engines

· Aerospace Equipments

· Aero Engines of Russian Origin

· Aero Engines of Origin

Brand Names :

"HAL", "KIRAN", "HIT-34", "CHETAK", "HAWK" and "JAGUAR"

GENERAL INFORMATION

Customers :	Manufacturers Government Bodies Others Domestic Customers: v Indian Airforce - 80% v Indian Coast Guard v Indian Airlines v Indian Navy v Indian Army v Border Security Force v Defence Research & Development Organisation v Indian Space Research Organization v Air India v Airports Authority of India v Jet Airways v Air Sahara v Bharat Electronics v Ordinance Factories v Oil & Natural Gas Corporation Limited v Coal India v Kudremukh Iron Ore Company Limited v NALCO v Reliance Industries v United Breweries v Government of Karnataka v Government of Andhra Pradesh v Government of Maharashtra v Government of Rajasthan v Government of West Bengal v Government of Jammu & Kashmir v Government of Uttar Pradesh v Government of Andhra Pradesh International Customers v Cosmic Air, Nepal v Gorkha Airlines, Nepal v Royal Nepal Army, Nepal v Island Aviation Services, Maldives v Royal Malaysian Air Force, Malaysia v Vietnam Air Force, Vietnam v Corporate Air, Philippines v Mistubishi Heavy Industries, Japan v Coast Guard, Mauritius v Namibian Air Force, Namibia v Peruvian Air Force, Peru v ELTA, Israel v Israel Aircraft Industries, Israel v Royal Air Force, Oman v Transworld Aviation, UAE v Airbus Industries, France v Dassault Aviation, France v EADS, France v Snecma, France v APPH Bolton, UK v BAE Systems, UK v Chelton, UK v Dowty Aerospace Hydraulics, UK v Hampson, UK v Messier Dowty Limited, UK v Rolls Royce Plc, UK v Smiths Industries, UK v Strongfield Technologies, UK v The Boeing Aircraft Company, USA v Honeywell International, USA v MOOG, USA
No. of Employees :	35000 (approximately)
Bankers :	v State Bank of India Industrial Finance Branch Residency Plaza, Residency Road, Bangalore 560025, Karnataka, India v Punjab National Bank, City Branch, Bangalore - 560 002, Karnataka, India v State Bank of Mysore, Industrial Finance Branch, Bangalore - 560 001, Karnataka, India v Bank of Baroda, Banking Branch, Bangalore - 560 025, Karnataka, India v Indian Bank, Bangalore, Karnataka, India v State Bank of India, Madame Cama Road, Mumbai - 400 021, Maharashtra, India v State Bank of Hyderabad v State Bank of Travancore v State Bank of Bikaner and Jaipur
Banking Relations :	Good
Auditors :
Name :	Shantahmurthy and Company Chartered Accountants
Address :	“SIsa House” No.3029, Hal 2^nd Stage, Sri Sai Darshna Marg, 13^th Main, Indiranagar, Bangalore- 560008, Karnataka, India
Pan No.:	AACFS5604E
Associates/Subsidiaries :	v BAR Hal Software Private Limited Address: Bangalore, Karnataka, India v All Government of India Undertaking Companies

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
160,000,000	Equity shares	Rs.10/- each	Rs.1600.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
120,500,000	Equity shares	Rs.10/- each	Rs.1205.000 millions

Notes

Of the above Shares, 2400000 Shares of Rs.10 each have been allotted as fully paid-up without payment being received in cash

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		1205.000	1205.000	1205.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		96247.224	80030.226	64959.658
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		97452.224	81235.226	66164.658
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		14855.529	15052.868	15252.657
DEFERRED LIABILITIES (Net)		1.685	1.820	19.853
TOTAL		112309.438	96289.914	81437.168
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15091.794	14655.024	43397.092
Capital work-in-progress		1184.198	2123.740	2178.593
Special Tools & Equipments		28882.648	29782.531	0.000
INVESTMENT		3975.107	2306.560	440.298
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	174271.809	136600.348	104311.862
	Sundry Debtors	23182.162	18580.350	18482.571
	Cash & Bank Balances	200993.174	186576.356	197445.579
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57013.988	50733.840	58561.421
Total Current Assets		455461.133	392490.894	378801.433
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24592.895	30636.563	37881.330
	Other Current Liabilities	370898.540	318236.667	312586.027
	Provisions	15728.303	15857.873	12719.952
Total Current Liabilities		411219.738	364731.103	363187.309
Net Current Assets		44241.395	27759.791	15614.124
MISCELLANEOUS EXPENSES		18934.296	19662.268	19807.061
TOTAL		112309.438	96289.914	81437.168

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	131140.807	114558.212	103706.965
		Other Income	22969.639	19536.961	21993.298
		TOTAL (A)	154110.446	134095.173	125700.263
Less	EXPENSES
		Consumption of raw material, components etc.	117724.254	92218.016	76359.457
		Amortization and other charges	9358.950	7855.189	7977.416
		Salaries and wages	22871.546	19540.535	25427.760
		Other expenses	9659.936	7884.972	7761.715
		Provision	4865.888	4237.221	4782.966
		Capital and other accounts	(7114.299)	(5847.515)	(7000.080)
		Change in WIP/SIT Scrape	(33339.008)	(20337.886)	(14386.141)
		TOTAL (B)	124027.267	105550.532	100923.093
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30083.179	28544.641	24777.170
Less	INTEREST (D)		0.045	0.344	2.987
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30083.134	28544.297	24774.183
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1687.895	1659.973	1425.543
	PROFIT BEFORE TAX (E-F) (G)		28395.239	26884.324	23348.640
Less	TAX (H)		7252.661	7210.211	5950.048
	PROFIT AFTER TAX (G-I) (I)		21142.578	19674.113	17398.616
Less	APPROPRIATIONS
		Interim Dividend	2999.500	2999.500	2999.500
		Proposed Final Dividend	1231.700	935.322	480.300
		Tax on Dividend (Interim and Final)	694.380	668.723	591.392
	BALANCE CARRIED TO THE B/S		16216.998	15070.568	13327.424
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2141.895	1766.406	NA
		Commission Earnings	229.144	249.262	NA
		Other Earnings	2.815	37.176	NA
	TOTAL EARNINGS		2373.854	2052.844	NA
	IMPORTS
		Raw Materials	33651.402	80489.975	NA
		Stores & Spares	77543.131	21069.429	NA
		Capital Goods	558.996	1286.463	NA
		Others	1625.807	1133.969	NA
	TOTAL IMPORTS		113379.336	103979.836	NA
	Earnings Per Share (Rs.)		175.46	163.27	144.39

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	13.72	14.67	13.84
Net Profit Margin (PBT/Sales)	(%)	21.65	23.47	22.51
Return on Total Assets (PBT/Total Assets}	(%)	6.03	6.60	5.53
Return on Investment (ROI) (PBT/Networth)		0.29	0.33	0.35
Debt Equity Ratio (Total Liability/Networth)		4.37	4.49	5.49
Current Ratio (Current Asset/Current Liability)		1.10	1.08	1.04

LOCAL AGENCY FURTHER INFORMATION

OPERATING RESULTS

During the year 2010-11, the Company has performed exceptionally well in terms of growth and profitability. The Company achieved the highest ever turnover of Rs. 131155.000 millions, an increase of 14.48 per cent over the previous year and Profit Before Tax of Rs. 28395.200 millions as compared to Rs. 26884.300 millions in the previous year.

PERFORMANCE AGAINST MOU

The Company has been signing a Memorandum of Understanding (MOU) with the Ministry of Defence (MoD) every year with regard to achieving the desired level of performance. The performance for the year 2009-10 was rated as ‘Excellent’. The rating for the year 2010-11 is under evaluation and the Company is likely to be adjudged as ‘Excellent’ once again. The Company has continued its journey of excellence for the 10^th year in its performance against the MOU with the Government.

FINANCE

Although HAL is a ‘Zero-Debt’ Company, it has been availing Cash Credit facility from the Bankers to meet its shortterm requirements from time to time. This credit rating has enabled the Company to source funds at the best possible rates, thereby improving the profitability. The cash and bank balances, including short-term deposits at the end of the year under review stood at Rs. 200993.200 millions against Rs.186576.400 millionsof the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry scenario

The Defence Industry in India is on the threshold of an inflection point in its expansion cycle driven by the modernisation plans, increased focus on Home Land security and India’s growing attraction as a “Home Market” defence sourcing hub. With a total defence allocation of Rs.1473440 millions for the year 2010-11, India is currently one of the largest defence spender in the world with the third highest growth rate.

The Defence industry in the country, hitherto dominated by the Defence Public Sector Undertakings (DPSUs), is undergoing a change with the opening up of the industry for private sector participation permitting 100 per cent private sector ownership and Foreign Direct Investment of up to 26 per cent. This has led to a paradigm shift in the structure of the Defence Industry in India.

It is estimated that 70 per cent of the equipment are imported and only 30 per cent are manufactured in India. The

current policy initiatives display the Government’s keenness to reverse this ratio and to strengthen the Aerospace and Defence (AandD) industry in the Country. The introduction of the concept of “Offsets” in the Defence Procurement Policy 2006 and reinforced in the subsequent revisions has opened up new vistas with huge business potential to the Public/Private sector companies in the Country.

Many major industrial houses in the Country have diversified into the AandD sector. News of collaborations and tieups between the Foreign OEMs, who are the technology providers, and the Indian companies is common. It would not be an overstatement to say that the Indian AandD market is one of the most sought after destinations with all the global majors striving for a share in the Indian market. To sum it up, “Opportunities are abounding, but so are the challenges”.

World over, the Aircraft Industry has the unique microeconomic characteristic of being oligopolistic in nature with high entry and exit barriers due to extremely high capitalisation and large cash flows. The industry, which has high technology content, not only to the products themselves but to production processes as well, is global in nature. The industry being sensitive in nature in terms of high technology is subjected to close Government regulations. In India, the aerospace sector has been spearheaded by Hindustan Aeronautics Limited (HHAL) and is reckoned to be the flag bearer of Indian Aviation.

HAL, a premier aerospace Company and a Navratna PSU, is involved in design and development, manufacture, upgrade and repair / overhaul of aircraft (fighters, trainers and transport), helicopters and associated Aero-engines, Accessories and Avionics for both military and civil applications. HAL has diversified into allied areas like manufacture of Structures for Aerospace Launch Vehicles/Satellites and Cryogenic Engines, production and overhaul of Marine and Industrial Gas Turbine Engines.

OUTLOOK

The Company with a vision “To become a significant global player in the aerospace industry” has chalked out plans and strategies to put itself into the big league of global companies in the aerospace vertical, while achieving the mission of becoming self-reliant in supporting the Indian Defence Services. HAL, with a turnover of Rs. 131155.000 millions (US$ 2.90 billion) in the year 2010-11, has a healthy Order Book of Rs. 682650 millions (a little over US$ 15.10 billion) as on 1st April 2011.

In addition, the new programmes in the pipeline such as the MMRCA project, co-development of FGFA and MTA with the Russians, indigenous development of new basic trainer HTT- 40, on-going development projects like the IJT, LCH, LUH etc. will not only ensure that the in-house capacity is fully loaded, but will also provide the required impetus for the growth of the Company.

As per the Perspective Plan, the Company would achieve sales of Rs. 239300 millions (US$ 5.30 billion) by 2016. HAL is presently ranked 38th in the world in the Defence Aerospace sector as per the ‘Top 100’ survey of the Defence aerospace manufacturing market for the year 2009, published in ‘Flight International’. HAL aims to improve the ranking and break into the top 25 as a first step.

FORM : 8

Corporate identity number of the company	U35301KA1963GOI001622
Name of the company	HINDUSTAN AERONAUTICS LIMITED
Address of the registered office or of the principal place of business in India of the company	P.B. No. 225, 15/1, Cubbon Road, P. O. Box 5150, Bangalore – 560 001, Karnataka
This form is for	Modification of Charge
Charge identification number of the charge to be modified	10070823
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India Industrial Finance Branch Residency Plaza, Residency Road, Bangalore - 560025, Karnataka, India
Nature of instrument creating charge	Joint deed of Hypothecation Form CF-2 and Interest pari passu agreement (both pertain to the same charge)
Date of instrument Creating the charge	30..04.2010
Amount secured by the charge	Rs. 11680.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC/LC/BG – Limit as per respective sanction Terms of Repayment CC/LC/BG – Limit as per respective sanction Margin CC/LC/BG – Limit as per respective sanction Extent and Operation of the charge Pari Passu First Charge on the Asset of the assets of the company and to the full extent. Pari passu with other 11 banks SBI Rs. 9700.000 Millions, PNB Rs. 700.000 Millions, IB Rs. 300.000 Millions, BOB Rs. 80.000 Millions, SB Rs. 220.000 Millions, CRS, UBI Rs. 20.000 Millions, IOB Rs. 20.000 Millions, SBH Rs. 300.000 Millions, SBM Rs. 280.000 Millions, SBT Rs. 20.000 Millions, SBP Rs. 20.000 Millions SBB and J Rs. 20.000 Millions, Total Rs. 11680.000 Millions Others Accordingly the bank had taken security documents for Rs. 11700.000 Millions. However, Exim Bank who had earlier inclined to join the consortium have since withdrawn from the consortium and hence have not executed the inter se pari passu agreement. Hence, the charge to be registered has to be registered to Rs. 11680.000 Millions. Please register the charge favouring the consortium banks.
Short particulars of the property charged	Hypothecation of company’s present and future current assets like stocks, raw material, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components and assets to be purchased out of bank finance.
Particulars of the present modification	The amount secured by the charge stands increased to Rs. 11680.000 Millions. The securities described and detailed in col. No. 15 herein above continue for the enhancement limit. All other terms and conditions remain unchanged.

FIXED ASSETS:

· Land and Development

· Buildings

· Plant,

· Machinery,

· Equipments

· Water Supply

· Rail Road, Siding

· Runways

· Equipments and Furniture’s

· Aircraft / Helicopters

· Transport Vehicles

PRESS RELEASES

Bangalore, Feb 01, 2012 : Shri T.Suvarna Raju has taken over the coveted post of Director (Design and Development) of Hindustan Aeronautics Limited(HAL), today. Prior to this, he was the General Manager of HAL’s Aircraft Division. He joined Hindustan Aeronautics Limited on 26 June 1980 as Management Trainee Technical XV Batch.

His has vast experience in various segments of aircraft production and was responsible for establishing licence production of Hawk Mk 132, DARIN II Prototype proving and production of 17 Jaguar twin-seater aircraft, 20 single-seat aircraft and upgrade of 29 NUP Jaguar aircraft, establishing the production facilities for Unmanned Arial Vehicle Lakshya and produced 27 UAV’s.

Born on 06th August 1958, holds BE (Mechanical), MBA (Marketing), PGDIPR and M.Phil in Defence Strategic Studies. He is also a member of the Aeronautical Society of India, which has conferred him DR.BIREN ROY TRUST AWARD FOR THE YEAR 2002 for his unstinted efforts in planning and establishment of new technologies at HAL.

His major achievements are :

• Conceptualized and prepared Performance Based Maintenance Management Support system for Hawk Mk 132 advanced jet trainer aircraft and brought on board the customer and MoD authorities to support the implementation of this project for the first time.
• Technology development for forming transparencies for Hawk, LCA and IJT aircraft. Developed MOPS in consultation with IISc to achieve self reliance and long term support to the customer.
• Develop Web based tools for project management on real time basis to enable the clear visibility of the project implementation status to various levels of management
• Development of technology for manufacturing P8I weapon bay door to demonstrate the capabilities of Indian Industry. Configuration control and production of Export Products to Boeing – USA, Airbus – France and IAI – Israel.
• Conceived the requirement of Local Modification Committee requirement for Hawk Aircraft and ensured the formation of LMC for Hawk Aircraft.
• Successful completion of 42 Mirage aircraft Major Inspection at Overhaul Division, Bangalore. Member of the study team for life extension of Mirage aircraft calendar life.
• Responsible for establishment of new technologies at HAL viz. Mirage Canopy re-bubbling, Gas Turbine Starter overhaul facilities, undercarriage overhaul facilities and Radome painting facilities
• Established 3rd and 4th line workshop facilities for Jaguar, Mirage LRU’s.
• Associated with M/s Elbit Systems of Israel in development and prototype testing of Project Legend.
  

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 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. 77.31
Euro	1	Rs. 64.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		80

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.