MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	ADVANTEC COILS PRIVATE LIMITED
Registered Office :	A-29, Block B-1 Extension, First Floor, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi - 110044
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	24.09.1992
Com. Reg. No.:	55-050416
Capital Investment / Paid-up Capital :	Rs. 386.399 Millions
CIN No.: [Company Identification No.]	U74899DL1992PTC050416
TAN No.: [Tax Deduction & Collection Account No.]	DELA05979B
PAN No.: [Permanent Account No.]	AAACA0907F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Air Conditioners.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

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 :	Sick Company
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	As per the IBRF the company is considered as a sick company. The networth of the company is erroded. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term bank facilities : (ICRA) BB
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	March 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	A-29, Block B-1 Extension, First Floor, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110044, India
Tel. No.:	91-11-41225123 (10 Lines)/ 31901300
Fax No.:	91-11-41225106
E-Mail :	vsagar@advanteccoils.com sonali@advanteccoils.com sales@advanteccoils.com
Website :	http://www.advanteccoils.com http://www.azureacpl.com
Branch Offices :	Located at: Ø Mumbai Ø Ahmedabad

DIRECTORS

AS ON 28.06.2012

Name :

Mr. Gurvinder Pal Singh

Designation :

Director

Address :

K-25, Fateh Nagar, Tilak Nagar, New Delhi – 110018, India

Date of Birth/Age :

15.02.1963

Date of Appointment :

31.10.2011

PAN No.:

AAUPS4499M

DIN No.:

00283553

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Director	31/10/2011	24/09/1992	-	Active	NO
2	U34300DL1999PTC099118	LOKSHEEL INTERNATIONAL PRIVATE LIMITED	Director	12/06/2002	12/06/2002	-	Active	NO
3	U18204PB2007PTC036682	WOW HOME SOLUTIONS PRIVATE LIMITED	Director	24/05/2007	24/05/2007	-	Active	NO
4	U31908DL2007PTC168693	ANUSHKA AIR CONDITIONING PRIVATE LIMITED	Director	26/09/2007	26/09/2007	30/01/2008	Active	NO
5	U27310DL2007PTC171988	AGH ALTECH PRIVATE LIMITED	Managing director	01/11/2011	28/12/2007	-	Active	NO
6	U55101DL2008PTC183655	TGS HOSPITALITIES PRIVATE LIMITED	Director	24/09/2008	24/09/2008	-	Active	NO
7	U28910DL2011PTC222577	AGH WIRES PRIVATE LIMITED	Managing director	22/02/2012	20/07/2011	-	Active	NO

Name :

Mr. Tanjore Narasinra Rao Vidya Sagar

Designation :

Whole-time director

Address :

231, 3^rd Floor, Jai Maa Apartments, Plot No. 16, Sector 5, Dwarka New Delhi – 110075, India

Date of Birth/Age :

07.11.1952

Date of Appointment :

28.06.2012

DIN No.:

05191582

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Whole-time director	28/06/2012	16/11/2011	Active	NO

Name :

Mr. Dinesh Vijapurkar

Designation :

Alternate Director

Address :

Plot No. 630, Road No. 35, Jubilee Hill, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

25.05.1965

Date of Appointment :

28.06.2012

DIN No.:

02128630

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999AP2006PTC050207	LATITUDE OVERSEAS TRADE PRIVATE LIMITED	Director	29/05/2006	29/05/2006	-	Active	NO
2	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Director	28/06/2012	21/05/2008	-	Active	NO
3	U18101AP2010PTC070862	NCE FASHIONS PRIVATE LIMITED	Director	14/10/2010	14/10/2010	20/04/2012	Active	NO

Name :

Mr. Osama Fahad Albunyan

Designation :

Director

Address :

P. O. Box – 2700, Al Khobar – 31952, Saudi Arabia

Date of Birth/Age :

05.12.1967

Date of Appointment :

12.11.2008

DIN No.:

02150620

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Director	12/11/2008	21/05/2008	Active	NO
2	U74120DL2008PTC175696	ZAMIL INFRA PRIVATE LIMITED	Director	29/09/2012	03/06/2012	Active	NO

Name :

Mr. Abdullah Mohammed Alzamil

Designation :

Director

Address :

P. O. Box – 14440, Dammam – 31424, Saudi Arabia

Date of Birth/Age :

07.01.1965

Date of Appointment :

12.11.2008

DIN No.:

02150647

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Director	12/11/2008	21/05/2008	Active	NO

Name :

Mr. Awad Sharif Nugod Elamin

Designation :

Director

Address :

P. O. Box – 14440, Dammam – 31424, Saudi Arabia

Date of Birth/Age :

01.01.1951

Date of Appointment :

28.06.2012

DIN No.:

02287435

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Director	28/06/2012	21/05/2008	Active	NO

Name :

Mr. Natarajan Rangasamy

Designation :

Director

Address :

P. O. Box – 14440, Dammam – 31424, Saudi Arabia

Date of Birth/Age :

02.06.1973

Date of Appointment :

28.06.2012

DIN No.:

02948146

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1992PTC050416	ADVANTEC COILS PRIVATE LIMITED	Director	28/06/2012	16/11/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Chand Prakash
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.06.2012

Names of Shareholders	No. of Shares
Gurvinder Pal Singh	2010450
Amarjeet Kaur Sehgal	100
G P Singh and Sons (HUF)	100
Zamil Industrial Investment Company, Saudi Arabia	860900
Zamil Industrial Investment Company Asia Pte Limited, Singapore	35768326
Total	38639876

AS ON 28.06.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	94.80
Directors or relatives of directors	5.20
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Air Conditioners.

Products :

ITC Code	Product Descriptions
841583	Air Conditioners and Parts

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Window AC	Nos.	1800 units per day	N.A	44,831
ODU		1800 per day	N.A	--
Split Air Conditioner		N.A	N.A	17,233
Indoor Units		N.A	N.A	4,662
Outdoor Units		N.A	N.A	28
Outdoor Units (Kit)		N.A	N.A	36,754
Plastic Assembly		N.A	N.A	39,858

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

Ø Citibank NA, Jeevan Vihar, 3 Sansad Marg, New Delhi – 110001, India

Ø State Bank of India - Lead Bank, Overseas Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi – 110001, India

Facilities :

Secured Loans	31.12.2011	31.12.2010
	(Rs. In Millions)
Rupee term loans banks secured	0.000	31.849
Working capital loans banks secured	528.263	549.547
Working capital loans others secured	19.384	83.664
Loans taken for vehicles secured	0.476	0.631
Total	548.123	665.691
Unsecured Loans	31.12.2011	31.12.2010
	(Rs. In Millions)
Rupee term loans financial institutions unsecured	87.190	156.029
Loans directors unsecured	0.000	13.644
Other debt unsecured	297.560	157.773
Total	384.750	327.446

Banking Relations :	--
Auditors :
Name :	S.K. Surana and Company Chartered Accountants
Address :	4831/24, Ansari Road, Daryaganj, New Delhi – 110002, India
Tel. No.:	91-11-23288018 / 45652626
E-Mail :	info@suranaca.com suranasso@vsnl.net
Income-tax PAN of auditor or auditor's firm :	AAUFS1209F
Holding Company :	Ø Zamil Industrial Investment Company Asia PTE. Limited � Singapore Ø Zamil Air Conditioner (Division of ZIIC)
Ultimate Holding Company :	Zamil Industrial Investment Company � Saudi Arabia
Fellow Subsidiary :	Zamil Steel Building India (Private) Limited [U74210PN2003PTC131123]
Enterprises where significant influence exist :	Ø AGH Industries Ø Azure Kooltech Industries Ø Loksheel International Private Limited [U34300DL1999PTC099118]

CAPITAL STRUCTURE

AFTER 28.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
41,000,000	Equity Shares	Rs. 10/- each	Rs. 410.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38,639,876	Equity Shares	Rs.10/- each	Rs. 386.399 Millions

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40,000,000	Equity Shares	Rs. 10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38,639,876	Equity Shares	Rs.10/- each	Rs. 386.399 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		386.399	28.716	28.716
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		381.092	381.092	476.593
4] (Accumulated Losses)		(438.733)	(176.052)	0.000
NETWORTH		328.758	233.756	505.309
LOAN FUNDS
1] Secured Loans		548.123	665.691	604.026
2] Unsecured Loans		384.750	327.446	33.170
TOTAL BORROWING		932.873	993.137	637.196
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1261.631	1226.893	1142.505
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		600.872	612.895	508.283
Capital work-in-progress		6.739	21.600	79.184
INVESTMENT		0.210	0.210	0.200
DEFERREX TAX ASSETS		242.570	0.000	16.701
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	405.501	477.533	249.231
	Sundry Debtors	95.428	155.678	201.425
	Cash & Bank Balances	169.344	151.455	76.115
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	451.619	377.673	527.949
Total Current Assets		1121.892	1162.339	1054.720
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	109.908	214.979	122.223
	Other Current Liabilities	585.924	342.457	385.411
	Provisions	14.820	12.715	8.949
Total Current Liabilities		710.652	570.151	516.583
Net Current Assets		411.240	592.188	538.137
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1261.631	1226.893	1142.505

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	1451.992	2130.002
		Other Income	N.A.	N.A.
		TOTAL (A)	N.A.	N.A.	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	N.A.	N.A.	N.A.
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(282.244)	(107.271)
Less	FINANCIAL EXPENSES (D)		168.357	89.385
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(450.601)	(196.656)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		53.157	58.169
	PROFIT BEFORE TAX AND PRIOR PERIOD EXPENSE		(503.758)	(254.825)
Less	PRIOR PERIOD EXPENSE		0.638	0.027
	PROFIT BEFORE TAX (E-F) (G)		(504.396)	(254.852)	N.A.
Less	TAX (H)		(241.715)	16.701	N.A.
	PROFIT AFTER TAX (G-H) (I)		(262.681)	(271.553)	N.A.
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	136.442	253.940	N.A.
	IMPORTS
		Raw Materials	356.052	719.830	N.A.
		Capital Goods	43.478	85.945	N.A.
	TOTAL IMPORTS		399.530	805.775	N.A.
	Earnings Per Share (Rs.)		(80.86)	(94.57)	N.A.

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
Net Profit Margin (PBT/Sales)	(%)	(34.74)	(11.96)	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	(29.28)	(14.36)	N.A.
Return on Investment (ROI) (PBT/Networth)		(1.53)	(1.09)	N.A.
Debt Equity Ratio (Total Liability/Networth)		5.00	6.69	2.28
Current Ratio (Current Asset/Current Liability)		1.58	2.04	2.04

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note: The registered address of the company has been shifted from 54/C-1, Rama Road, Motinagar, India to the present

NATURE OF OPERATIONS

Advantec Coils Private Limited was incorporated as a private limited company in September, 1992. The Company is promoted by Mr. Gurvinder Pal Singh and deals in manufacturing of all kind of Air Conditioners. During the year 2008 Zamil Industrial Investment Company ( Saudi Arabia ) (ZIIC) had made a joint venture through equity participation with the Company. During the year ZIIC has taken over the management control of the company and Zamil Industrial Investment Company Asia PTE. Limited � Singapore converted 357.683 Millions fully compulsory convertible debenture in equity.

The accumulated losses of the company has exceeded 50% of net worth as at 31st Dec 2011, hence the company has become potentially sick company as per the Sick Industrial Companies Act, 1985 (SICA). Board of Directors will file report to Board of Industrial Financial Reconstruction (BIFR) as per the SICA provisions.

The company has merged one of its units in Bahadurgarh (BGH II) with another unit in Bahadurgarh (BGH III) in Jan 2012. The company has vacated the rented premises (BGH II) to reduce losses, however it will not affect the production capacity of the company.

OPERATIONAL PERFORMANCE

During the year, the Company has been able to achieve a turnover of Rs. 1451.992 Millions as compared to the turnover of Rs. 2130.002 Millions during the previous year.

The operations of the Company, during the period have suffered due to continued delay in fully realising the insurance claim. As the Members are aware there was a fire accident in the company's factory at Nalagarh in June 2009. The company has so far realised a sum of Rs 153.000 Millions out of the claim of Rs. 446.400 Millions. They hope the Insurance Company would make the full settlement of claim by Aug/Sep this year. This delay has caused severe strain on the liquidity of the company, creating bottlenecks to increase production. The low turnover has resulted in losses. Stringent control over the productivity and cost and favourable market conditions will help in improving performance during the current year.

The Directors are monitoring the operation of the Company and are confident that the Company will be able to substantially improve the performance during the current year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1992PTC050416
Name of the company	ADVANTEC COILS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	54/C-I, Rama Road, Moti Nagar, New Delhi – 110015, India Email: sonali@advanteccoils.com
This form is for	Creation of charge
Type of charge	Immovable Property Any interest in immovable property Book Debts Movable Property
Particular of charge holder	State Bank of India - Lead Bank, Overseas Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi – 110001, India Email: mk.mehra@sbi.co.in
Nature of description of the instrument creating or modifying the charge	i) Working Capital Consortium Agreement dated 23.08.2011 ii) Joint Deed of Hypothecation dated 23.08.2011 iii) Inter Se Agreement dated 23.08.2011 iv) Confirmatory Letters regarding deposit of Title Deeds dated 23.08.2011.
Date of instrument Creating the charge	23.08.2011
Amount secured by the charge	Rs. 1120.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The borrower agrees with each of the said Banks that it will abide by the terms and conditions contained in the said Working Capital Consortium Agreement/Joint Deed of Hypothecation/ Inter se Agreement. Terms of Repayment The Borrower agrees to repay to each of the said banks their respective principal amount on demand as mentioned in the said Consortium Agreement. The Borrower agrees with each of the said Banks that so long as the said facilities or any portion thereof will remain outstanding or unpaid, the Borrower will pay to each of the said Banks, interest and other charges as indicated in the said Working Capital Consortium Agreement/Joint Deed of Hypothecation/Inter se Agreement. Margin Margin - As prescribed by the Consortium Member Banks from time to time. Extent and Operation of the charge The charge shall rank pari-passu between the Consortium Banks up to the agreed exposure without any preference or priority of one over the other for the agreed exposure of working capital limits. Others The above is to secure the working capital facilities provided by the Consortium Member Banks as under : State Bank of India (Lead Bank) - Rs. 550.000 Millions, Bank of India - Rs. 227.500 Millions, ICICI Bank Limited - Rs. 342.500 Millions, totaling Rs. 1120.000 Millions.
Short particulars of the property charged	1) 1st pari-passu charge on the Current Assets of the company namely stock of raw materials, stocks-in-process, semi-finished and finished goods, stores and spares not relating to plant and machinery (consumable stores and spares), export bills receivable, book-debts and all other movables, both present and future, whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the Borrower's factories, premises and godowns situated at various places in different parts of the country or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the Borrower and either by way of substitution or addition with other Consortium Member Banks. 2) 1st pari-passu charge on the Fixed Assets of the company both present and future. 3) 1st pari-passu charge by way of equitable mortgage of immovable properties of the company situated at Factory Land & Buildingsit at Nalagarh i.e. Equitable mortgage over land & building at Village Dhadi Kanian and Khera Nihla, Tehsil Nalagarh, District Solan, bearing Khasra No. 780/625/477, 782/626, 477, 784/ 486, 487, 489 and 490 and Khasra No. 707 of Village Khera Nihla. Total area of the land 26543.84 sq. mtrs.

CONTINGENT LIABILITY NOT PROVIDED FOR

(Rs. in millions)

Particulars	31.12.2011	31.12.2010
On guarantees given to banks and financial companies	182.500	192.500
Bank Guarantee	1.411	1.911
On bills discounted outstanding	--	29.041
Letter of Credit outstanding	96.026	85.126
Differential amount of custom duty in respect of machinery/raw material imported under EPCG/Advance License scheme including interest thereon	41.444	51.694
Outstanding Derivative (Company has pledged fixed deposit of Rs. 34.666 Millions against the above derivative contract)	37.205	17.577

FIXED ASSETS:

Tangible assets:

Ø Freehold Land

Ø Factory Building

Ø Other Building

Ø Electric Installations

Ø Plant and Machinery

Ø Office Equipments

Ø Dies and Moulds

Ø Computer

Ø Vehicles

Ø Furniture and Fixtures

Intangible assets:

Ø Software

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 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. 54.97
UK Pound	1	Rs. 87.50
Euro	1	Rs. 70.16

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		12

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.