MIRA INFORM REPORT

Report Date :

05.09.2012

IDENTIFICATION DETAILS

Name :	LITEL INFRA-RED SYSTEMS PRIVATE LIMITED
Registered Office :	J - 284, M.I.D.C., Bhosari, Pune – 411 026, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.06.1987
Com. Reg. No.:	11-134202
Capital Investment / Paid-up Capital :	Rs. 7.400 millions
CIN No.: [Company Identification No.]	U31500PN1987PTC134202
TAN No.: [Tax Deduction & Collection Account No.]	PNEL03751G
PAN No.: [Permanent Account No.]	AAACL4298G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Infrared Emitiers, Modules, Custom Built Intrared Heating Systems, Ultra Violet Heating / Curing Equipments, Non-Contact Temperature Sensor & Power Controllers.
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 63000
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. 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, 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

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.

INFORMATION DENIED BY

Name :	Ms. Shubhangi
Designation :	Account Assistant
Date :	03.09.2012

LOCATIONS

Registered Office :	J - 284, M.I.D.C., Bhosari, Pune – 411 026, Maharashtra, India
Tel. No.:	91-20-66300631 / 66300632 / 66300637 / 27120564 / 66300636 / 66300637 / 38 / 27121848 / 27127631
Mobile No.:	91-9623422464 (Mr. P.B.Kulkarni)
Fax No.:	91-20-27121086
E-Mail :	litelir@vsnl.com
Website :	www.litelir.com

DIRECTORS

As on 16.09.2011

Name :

Mr. Avinash Dattatraya Kulkarni

Designation :

Director

Address :

55 / 22 Ashokpath, Pras Anna Apartments, Erandvana, Pune – 411 004, Maharashtra, India

Date of Birth/Age :

26.01.1942

Date of Appointment :

19.06.1987

DIN No.:

00016046

Voter ID No.:

SAO0130855

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	U31500PN1979PTC138325	LITEX ELECTRICALS PRIVATE LIMITED	Managing director	19/05/1979	19/05/1979	-	Active	NO
2	U24100MH1986PTC039957	ELKAY CHEMICALS PVT LIMITED	Director	10/08/1986	10/08/1986	-	Active	NO
3	U31500PN1987PTC134202	LITEL INFRA-RED SYSTEMS PRIVATE LIMITED	Director	19/06/1987	19/06/1987	-	Active	NO
4	U74999MH1994PTC082852	KULKARNI TECHNO-PROCESS PRIVATE LIMITED	Director	11/11/1994	11/11/1994	-	Active	NO
5	U31902PN1996PLC014601	ARKLITE SPECIALITY LAMPS LIMITED	Director	01/10/2000	01/10/2000	-	Active	NO
6	L29307MH1981PLC023810	ENVAIR ELECTRODYNE LIMITED	Director	29/03/2003	29/03/2003	-	Active	NO
7	U29197PN2011PTC138721	AEROPURE UV SYSTEMS PRIVATE LIMITED	Additional director	10/09/2011	10/09/2011	-	Active	NO

Name :

Mr. Shirish Vasant Karkarey

Designation :

Director

Address :

4 Prasanna Apartments, Ashok Path, 55 / 22, Erandaw, Pune – 411 004, Maharashtra, India

Date of Appointment :

19.06.1987

DIN No.:

00016191

Voter ID No.:

MT/42/247/0366603

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	U31500PN1979PTC138325	LITEX ELECTRICALS PRIVATE LIMITED	Director	01/06/1985	01/06/1985	-	Active	NO
2	U31500PN1987PTC134202	LITEL INFRA-RED SYSTEMS PRIVATE LIMITED	Director	19/06/1987	19/06/1987	-	Active	NO
3	U31902PN1996PLC014601	ARKLITE SPECIALITY LAMPS LIMITED	Director	01/10/2000	01/10/2000	-	Active	NO

Name :

Mr. Mahendra Kantilal Shah

Designation :

Managing Director

Address :

2 A, Shree Vallabh 11 / 2, Boat Club Road, Pune – 411 001, Maharashtra, India

Date of Birth/Age :

01.06.1941

Date of Appointment :

19.06.1987

DIN No.:

00446569

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	U31500PN1979PTC138325	LITEX ELECTRICALS PRIVATE LIMITED	Director	10/10/1981	10/10/1981	-	Active	NO
2	U31500PN1987PTC134202	LITEL INFRA-RED SYSTEMS PRIVATE LIMITED	Managing director	19/06/1987	19/06/1987	-	Active	NO
3	U51507PN2002PTC017194	ACTION MEDICAL MARKETING PRIVATE LIMITED	Director	06/08/2002	06/08/2002	-	Active	NO

Name :

Mr. Pramod Manohar Shringarpure

Designation :

Whole-time Director

Address :

B 21, Ashwini Society, Pune – 411 005, Maharashtra, India

Date of Birth/Age :

13.11.1942

Date of Appointment :

19.06.1987

DIN No.:

00449472

Name :

Mr. Nilay Mahendra Shah

Designation :

Director

Address :

2A, Shree Vallabh 11 / 2, Boat Club Road, Pune – 411 001, Maharashtra, India

Date of Birth/Age :

06.08.1974

Date of Appointment :

30.09.2008

DIN No.:

00840933

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	U51507PN2002PTC017194	ACTION MEDICAL MARKETING PRIVATE LIMITED	Director	10/09/2004	10/09/2004	-	Active	NO
2	U31500PN1987PTC134202	LITEL INFRA-RED SYSTEMS PRIVATE LIMITED	Director	30/09/2008	01/04/2008	-	Active	NO
3	U31500PN1979PTC138325	LITEX ELECTRICALS PRIVATE LIMITED	Director	13/08/2010	01/10/2009	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Shubhangi
Designation :	Account Assistant
Name :	Mr. P. B. Kulkarni
Designation :	General manager - Operations

MAJOR SHAREHOLDERS

As on 16.09.2011

Names of Shareholders	No. of Shares
Litex Electricals Private Limited	172800
Doshi Nagindas Bipin	18000
Karkarey Vasant Shirish	18000
Shah Subdarji Chhotalal JW ILA Shah	18000
Mehta Dinkar Mrudula	18720
Shrirangarpure Manohar Pramod	72000
Kulkarni Dattatray Avinash	18000
Kulkarni Avinash Veena	201600
Shah kantilal Mahendra	38880
Shah Mahendra Ila	120000
Kulkarni Balkrishna Pralhad	10000
Nawathe Ramchandra Kiran	10000
Shah Mahendra Nilay	24000
TOTAL	740000

As on 29.06.2012

Names of Shareholders	No. of Shares
Mr. N Jawahar	5000
Mr. Sanjay Mali	5000
TOTAL	10000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	23.35
Directors or relatives of Directors	76.65
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Infrared Emitiers, Modules, Custom Built Intrared Heating Systems, Ultra Violet Heating / Curing Equipments, Non-Contact Temperature Sensor & Power Controllers.
Products :	· Ir Module · Vertical Web Dryer · Paint Drying and Curling Booth · Ir Heating System · Ir Sensor · Booster Oven · Pvc Coating Drying System

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· S.B.I. Pune (Dividend) A/C

· S.B.I. Mumbai

· S.B.I. (EDI) A/C Mumbai

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Cash credit from banks secured by hypothecation of stocks and book debts and personal guarantee of three directors	1.194	0.780
Total	1.194	0.780

Banking Relations :	--
Auditors :
Name :	Shirish H Shah and Company Chartered Accountants
Address :	1 / 2 , Mangrol Mansion, 6, Rustom Sidhwa Marg, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-66357045/46
Fax No.:	91-22-22642361
E-Mail :	shshahca@yahoo.com
PAN No.:	AAJPS8833N

CAPITAL STRUCTURE

As on 31.03.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
740000	Equity Shares	Rs. 10/- each	Rs. 7.400 millions

As on 16.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 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		7.400	7.400	7.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.528	6.819	6.317
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.928	14.219	13.717
LOAN FUNDS
1] Secured Loans		1.194	0.011	0.780
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.194	0.011	0.780
DEFERRED TAX LIABILITIES		0.702	0.668	0.835
TOTAL		17.824	14.898	15.332
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.377	5.837	6.391
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.018	2.324	1.728
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.315	8.183	10.493
	Sundry Debtors	7.176	2.562	2.621
	Cash & Bank Balances	0.151	0.117	0.077
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.893	4.852	8.106
Total Current Assets		25.535	15.714	21.297
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.280	4.217	5.002
	Other Current Liabilities	7.466	1.108	2.621
	Provisions	3.360	3.652	6.461
Total Current Liabilities		18.106	8.977	14.084
Net Current Assets		7.429	6.736	7.213
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17.824	14.898	15.332

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Income	62.137	38.010	40.913
PROFIT BEFORE TAX	3.885	1.260	1.521
Earnings Per Share (Rs.)	4.07	1.56	1.22

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	15.56	5.84	5.49
Return on Investment (ROI) (PBT/Networth)		0.24	0.08	0.11
Debt Equity Ratio (Total Liability/Networth)		1.21	0.63	1.08
Current Ratio (Current Asset/Current Liability)		1.41	1.75	1.51

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	No
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	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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	No

Note:

Registered office of the company has been shifted from 916, Dhiraj Shri Hind Co-operative Housing Society, 23, Duncan Causeway Road, Sion, Mumbai, Maharashtra, India to the present registered address w.e.f. 05.06.2009

FIXED ASSETS:

· Land

· Building

· Machinery

· Electrical Installations

· Furniture

· Office Equipments

· Vehicles

· Computers

REVIEW OF ACTIVITIES:

During this period the world economy was in recovery stage after the global meltdown. In this process India is playing a pivotal role. Many foreign manufacturing companies are coming to India either for setting up new facilities or enhancing their existing capacities. Indian automobile industry has become the leaders in this transformation. Many auto, auto. Ancillary and related businesses have grown in India at very high rate. Subject quickly adapted' to this trend and captured several orders for supplying paint touch up in auto assembly or systems in auto component manufacturing. Subject past experience played important role. Appropriate pricing. Acceptable quality and prompt response by Subject enabled several prestigious orders from auto majors Toyota, Hyundai and Volkswagen. Also, from component manufacturers such as Brakes India and Rane Brakes.

Innovative approach for T-Shirt Print Curing machine using gas in place of electric power became popular in Tirupur (the capital of T-Shirt Printing Industry). Units achieved energy saving and production rate acceptable to user. Recently, the state authorities closed all printing activities because of enforcement of water pollution laws. This is expected to be resolved soon.

Defence Agency DRDO preferred specially designed Subject emitters and associated components for the space materials testing applications for their laboratories. This was the biggest single order received by Subject in its history. This order was completed successfully in stipulated time.

The export of lamps and accessories remained almost zero, due to recession in Europe and USA.

All in an, there was a significant shift in Indian market having major expansion in auto and auto component industry. Where as other traditional industries remained lack luster. It is anticipated that capital equipment market will remain positive for 2011-12.

FUTURE PLAN OF ACTION:

· Increase knowledge base with services of specialist consultants

· Develop more energy saving heating sources & systems.

· Develop sensitive electronic devices & instrumentation for precision control, and repeatability.

· Bring awareness of energy saving through infrared heating to many industries.

· Use internet to upgrade heating systems components and designs.

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.55.53
UK Pound	1	Rs.88.23
Euro	1	Rs.70.01

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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.