MIRA INFORM REPORT

Report Date :

08.09.2012

IDENTIFICATION DETAILS

Name :	TANEJA AEROSPACE AND AVIATION LIMITED
Registered Office :	Belagondapalli Village, Thally Road, Denkanikotta, Belagondapalli – 635 114, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.07.1988
Com. Reg. No.:	18-014460
Capital Investment / Paid-up Capital :	Rs.124.654 millions
CIN No.: [Company Identification No.]	L62200TZ1988PLC014460
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is primarily engaged in manufacturing, selling of products and services connected with aviation and also in Engineering Design Services.
No. of Employees :	1500 (Approximately)

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 4386000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual tarde 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	BBB+ (Long Term)
Rating Explanation	The moderate credit quality rating assigned by ICRA. The rated instrument carries higher than average credit risk.
Date	June 19, 2012

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 Office/ Factory :	Belagondapalli Village, Thally Road, Denkanikotta, Belagondapalli – 635 114, Tamilnadu, India
Tel. No.:	91-4347-233358 (Direct)
Mobile No.:	91-9900211807 (Mr. S.M. Kapoor)
Fax No.:	91-4347-233414
E-Mail :	smkapoor@taal.co.in aircraftsales@taal.co.in
Website :	http://www.taal.co.in
Corporate Office 1 :	2^nd Floor, Panchashila No.42, Dickenson Road, Bangalore – 560 042, Karnataka, India
Tel. No.:	91-80-25574600/ 25574613
Fax No.:	91-80-25574617
Corporate Office 2 and Infrastructure Office :	GGR Tower, 2^nd Floor, Sy # 18/2b, Ambalipura Road, Ambalipura Village, Sarjapur Road, Bellandur Gate, Bangalore East Taluk, Bangalore – 560 103, Karnataka, India
Tel. No.:	91-80-67300200
Fax No.:	91-80-67300201
Branch Office :	Lunkad Towers, 2nd Floor, Viman Nagar, Pune – 411 014, Maharashtra, India
Tel. No.:	91-20-41434185

DIRECTORS

As on 31.03.2012

Name :	Mr. Salil Taneja
Designation :	Chairman
Name :	Mr. C.S. Kameswaran
Designation :	Managing Director
Name :	Mr. B.R. Taneja
Designation :	Director
Name :	Mr. J.P. Sureka
Designation :	Director
Name :	Mr. A.K. Jain
Designation :	Director
Name :	Mr. R. Surie
Designation :	Director
Name :	Mr. S.K. Newlay
Designation :	Director (upto March 04, 2012)
Name :	Mr. Khushroo Rustumji
Designation :	Director (w.e.f. May 15, 2012)

KEY EXECUTIVES

Name :	Ms. Priya Nair
Designation :	Company Secretary
Name :	Mr. S.M. Kapoor
Designation :	Chief Executive Officer (Aircraft Manufacturing and Maintenance Support)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	32,500	0.13
Bodies Corporate	12,699,516	52.15
Sub Total	12,732,016	52.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	12,732,016	52.29
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	300	-
Foreign Institutional Investors	1,775,190	7.29
Sub Total	1,775,490	7.29
(2) Non-Institutions
Bodies Corporate	2,467,700	10.13
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	5,377,772	22.08
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1,664,285	6.83
Any Others (Specify)	333,473	1.37
Non Resident Indians	325,973	1.34
Trusts	7,500	0.03
Sub Total	9,843,230	40.42
Total Public shareholding (B)	11,618,720	47.71
Total (A)+(B)	24,350,736	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	580,000	-
Sub Total	580,000	-
Total (A)+(B)+(C)	24,930,736	-

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in manufacturing, selling of products and services connected with aviation and also in Engineering Design Services.

Products :

Product Description	ITC Code
Light Transport Aircraft	88023000
Parts of Aircraft	88033000
Engineering Design Services	85238020

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Light Transport Aircraft	NA	24	NIL

* At present Aircraft manufacturing is not in Production line.

GENERAL INFORMATION

No. of Employees :

1500 (Approximately)

Bankers :

v Bank of Baroda

v Canara Bank

v Bank of India

v State Bank of India

v Vijaya Bank

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Term Loan from Bank	25.486	37.485
Short Term Borrowings
Working Capital Borrowing from Banks	93.905	84.899
Total	119.391	122.384

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Loans and Advances from related party
Inter Corporate Deposit	134.000	112.500
Other Borrowings (from entities other than bank)	77.179	56.284
Short Term Borrowings
Term Loan	8.722	40.893
Total	219.901	209.677

Notes:

Long Term Borrowings

Maturity Profile of Secured Term Loan from Bank

(Rs. in millions)

Particulars	Maturity Profile
	1-2 years	2-3 years	3-4 years	Beyond 4 years
Term Loan from Bank
Bank of India	12.000	13.486	-	-

Details of Securities and other terms:

Term Loan from Bank is secured by a first charge on specific free hold lands to the extent of 26.87 acres along with all movable properties of the Company situated on the said lands both present and future at Belagondapalli village, Thalli Road Denkanikottai Taluk, Krishnagiri District, Belagondapalli - 635114, Tamilnadu and second charge by way of hypothecation on current assets of the Company and further counter guarantee of ISMT Limited and Indian Seamless Enterprises Limited

The Loan is repayable in 60 monthly installment of Rs.1.000 million commencing from April 01, 2010 and ending on March 31, 2015.

Inter Corporate Deposit from related parties does not have any security or repayment term.

There are no stipulations for repayment of other borrowings.

Short Term Borrowings

Working Capital Loan from the banks is secured against hypothecation of stocks and Book Debts on pari-passu and second charge on Immovable properties/Fixed Assets and further guaranteed by counter guarantee of Promoter Company.

Banking Relations :	--
Auditors :
Name :	Haresh Upendra and Company Chartered Accountants
Address :	Pune, Maharashtra, India
Subsidiary Companies	v First Airways Inc v TAAL Aerosystems Private Limited
Associate Companies	v ISMT Limited v Indian Seamless Enterprises Limited v Vishkul Leather Garments Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.5/- each	Rs.200.000 millions
1000000	15% Redeemable Cumulative Preference Shares	Rs.50/- each	Rs.50.000 millions
	Total		Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24930736	Equity Shares	Rs.5/- each	Rs.124.654 millions

Reconciliation of the number of shares outstanding at the beginning and at the end of the year:

Particulars	As at March 31, 2012
	No. of shares	Rs. in millions
Equity Shares at the beginning of the year	24930736	124.654
Add: Shares issued during the year	-	-
Equity Shares outstanding at the end of the year	24930736	124.654

Details of shareholders holding more than 5% Equity Shares in the Company:

Name of the Shareholder	As at March 31, 2012
	No. of shares	% Holding
Equity Shares of Rs.5/- each
Indian Seamless Enterprises Limited	10479620	42.03
Vishkul Leather Garments Private Limited	1689179	6.78

Terms/rights attached to Equity Shares

The Company has only one class of issued share having par value of Rs.5/- each. Holder of Equity Shares is entitled to one vote per share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010 (9 Months)
SHAREHOLDERS FUNDS
1] Share Capital		124.654	124.654	124.654
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		971.826	930.401	907.538
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1096.480	1055.055	1032.192
LOAN FUNDS
1] Secured Loans		119.391	122.384	209.120
2] Unsecured Loans		219.901	209.677	76.649
TOTAL BORROWING		339.292	332.061	285.769
DEFERRED TAX LIABILITIES		56.438	56.438	56.438
TOTAL		1492.210	1443.554	1374.399
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1134.966	1097.698	957.248
Capital work-in-progress		112.499	99.217	233.732
INVESTMENT		47.846	47.771	47.771
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	47.236	54.148	56.440
	Sundry Debtors	134.823	74.478	14.851
	Cash & Bank Balances	58.991	78.012	63.476
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	139.526	158.743	145.867
Total Current Assets		380.576	365.381	280.634
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.817	29.537	36.850
	Other Current Liabilities	113.584	119.364	96.603
	Provisions	27.276	17.612	11.533
Total Current Liabilities		183.677	166.513	144.986
Net Current Assets		196.899	198.868	135.648
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1492.210	1443.554	1374.399

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010 (9 Months)
	SALES
		Revenue From Operations	504.489	412.079	245.952
		Other Income	18.284	11.183	12.511
		TOTAL (A)	522.773	423.262	258.463
Less	EXPENSES
		Cost of Materials Consumed	85.979	73.162	49.335
		Changes in Inventory of Finished Goods & Work-in-Progress & Stock-in-Trade	15.711	6.436	(0.723)
		Operational and Other Expenses	141.376	106.412	88.885
		Employee Benefit Expenses	157.566	118.084	74.995
		Extra Ordinary Items	(0.187)	0.794	7.884
		TOTAL (B)	400.445	304.888	220.376
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		122.328	118.374	38.087
Less	FINANCIAL EXPENSES (D)		49.435	42.767	24.526
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		72.893	75.607	13.561
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.254	32.839	22.264
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		38.639	42.768	(8.703)
Less	TAX (H)		0.000	0.125	16.979
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		38.639	42.643	(25.682)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		145.343	102.700	128.382
	BALANCE CARRIED TO THE B/S		NA	145.343	102.700
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods/Services	83.093	26.737	6.592
		Commission	34.242	10.613	2.814
		Charter Income	0.000	2.009	0.000
	TOTAL EARNINGS		117.335	39.359	9.406
	IMPORTS
		Raw Materials, Spares, etc.	12.323	15.892	4.344
	TOTAL IMPORTS		12.323	15.892	4.344
	Earnings/ (Loss) Per Share (Rs.)		1.55	1.71	(1.03)

QUARTERLY RESULTS

PARTICULARS	30.06.2012 (1^st Quarter)
Net Sales	82.110
Total Expenditure	95.810
PBIDT (Excl OI)	(13.700)
Other Income	1.420
Operating Profit	(12.280)
Interest	14.800
Exceptional Items	0.000
PBDT	(27.080)
Depreciation	8.180
Profit Before Tax	(35.250)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(35.250)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(35.250)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010 (9 Months)
PAT / Total Income	(%)	7.39	10.07	(9.94)
Net Profit Margin (PBT/Sales)	(%)	7.66	10.38	(3.54)
Return on Total Assets (PBT/Total Assets}	(%)	2.55	2.92	(0.70)
Return on Investment (ROI) (PBT/Networth)		0.04	0.04	(0.01)
Debt Equity Ratio (Total Liability/Networth)		0.48	0.47	0.42
Current Ratio (Current Asset/Current Liability)		2.07	2.19	1.94

LOCAL AGENCY FURTHER INFORMATION

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	No
8) No. of employees	Yes
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	Yes
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	No
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

OPERATIONS

The Company has continued to register significant growth in revenue during the year. Revenues in all divisions increased during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

Subject has two distinct business Segments, Aviation and Engineering Design Services.

Aviation consist of:

Ÿ Aircraft Manufacturing Complex (AMC);

Ÿ Aircraft Sales and Services (ASSR) and

Ÿ Airfield Services (Airfield)

Engineering Design Services consists of: TAAL Technologies.

The AMC division caters to the aerospace community in the country including organizations such as ISRO, Hindustan Aeronautics Limited (HAL), Aeronautical Defence Establishment (ADE), National Aerospace Laboratory (NAL), the Indian Navy and the Indian Air Force. They design and manufacture components for these organizations and also participate in aircraft modification programs for the defence forces. They have recently added a few export customers as well.

The ASSR division focuses on providing consultancy services for the sale of aircraft, on providing maintenance and operations services for General Aviation aircraft and also carries on Charter operations.

The Airfield business refers to income generated from the airfield spreading over 240 acres that subject owns at Hosur in Tamilnadu. They have currently leased a large hangar that can accommodate a 737 or A320 type of aircraft to Airworks for maintenance and repair activity and they earn a rental income from this hangar.

TAAL Technologies is the design engineering wing of subject. This division provides off-shore and on-shore design support to companies outside India. In this segment they compete with the likes of TCS, Mahindra Satyam, CADES and Quest.

ACTIVITY WISE PERFORMANCE

(Rs. in millions)

Division	2011-12	2010-11
AMC	279.533	244.906
ASSR	89.442	88.573
Airfield	51.862	47.652
TAAL Technologies	83.652	30.948
Total	504.489	412.079

OUTLOOK

With the combination of an increase in defence spending, the introduction of an “Offset Policy”, the general growth in Civil Aviation in India and the growth in demand for design services, they foresee a consistent growth in their business over the coming years.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012

(Rs. in millions)

Sr. No.	Particulars	Quarter Ended 30.06.2012
		Unaudited
Part I
1.	Net Sales/ Income from Operations	82.110
2.	Expenditure
	(a) (Increase) / Decrease in Stock-in-trade and Work in progress	(1.274)
	(b) Consumption of Parts and Components	9.836
	(c) Employees Costs	50.296
	(d) Depreciation & Amortization	8.183
	(e) Operational and Other Expenditure	36.939
	Total Expenditure (a to e)	103.980
3.	Profit from Operations before Other Income , Interest and Finance Charges (1-2)	(21.870)
4.	Other Income	1.421
5.	Profit before Interest and Finance Charges (3+4)	(20.449)
6.	Interest and Finance Charges	14.802
7.	Profit/(Loss) after Interest and Finance Charges before Tax (5-6)	(35.251)
8.	Tax expenses	-
9.	Current Tax Minimum Alternate Tax	-
10.	MAT Credit Entitlement	-
11.	Profit/(Loss) from Ordinary Activities after Tax (7-8-9+10)	(35.251)
12.	Prior Period Adjustments	-
13.	Net Profit/(Loss) from ordinary activities after Tax (11-12)	(35.251)
14.	Share of Minority Interest	-
15.	Net Profit After tax and Minority Interest (13-14)	(35.251)
16.	Paid-up Equity Share Capital (Face Value of Rs. 5/- per Share)	124.654
17.	Reserves excluding Revaluation Reserves as per Balance Sheet of previous accounting year	-
18.	Earnings Per Share	(1.41)
	Basic and Diluted Earnings Per Share (Rs.) (Not annualized)
Part II
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of Shares	11618720
	Percentage of Shareholding	46.60
2.	Promoters and Promoter group Shareholding
	(a) Pledge/Encumbered
	Number of Shares	-
	Percentage of Shares (as a % of the total
	shareholding of promoter and Promoter group)	-
	Percentage of Shares (as a % of the total share
	capital of the company)	-
	(b) Non-Encumbered
	Number of Shares	12732016
	Percentage of Shares (as a % of the total
	shareholding of promoter and Promoter group)	100.00
	Percentage of Shares (as a % of the total share capital of the Company)	51.07
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed off during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

Notes:

1. The Company is primarily engaged in Aviation and Design and Engineering Activities

2. Figures for previous period have been reclassified and regrouped wherever necessary to conform to the current quarter and year ended

3. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on 24^th July, 2012

4. The Statutory Auditors have carried out Limited review of Unaudited financial result for the quarter ended 30^th June, 2012.

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

Sr. No.	Particulars	Quarter Ended 30.06.2012
		Unaudited
1.	Segment Revenue
	Sales & Services
	a) Aviation	46.696
	b) Design & Engineering Services	35.414
	Total Net Sales / Income from Operations	82.110
2.	Segment Results
	(Profit after Depreciation & before Finance Charges and Tax)
	a) Aviation	(19.036)
	b) Design & Engineering Services	(1.414)
	Total	(20.450)
	Less : Finance Charges	14.801
	Total Profit /(Loss)Before Tax	(35.251)
	Less : Tax Expenses	-
	Less : Prior Period Adjustments	-
	Total Profit/(Loss) after Tax	(35.251)
3.	Capital Employed
	( Segment Assets – Segment Liabilities)
	a) Aviation	1170.142
	b) Design & Engineering Services	38.743
	c) Unallocable	(285.822)

FIXED ASSETS

v Freehold Land

v Building

v Plant and Machinery

v Office Equipment

v Furniture and Fixture

v Hardware

v Vehicles

WEBSITE DETAILS:

HISTORY

1991-1992

v Technical Know- how Transfer Agreement with Partenavia , Italy for manufacture of 6 Seater and 11 Seater Light Transport Aircraft.

v Agreement with National Aerospace Laboratories (NAL) for Joint Development of Twin Seater All Composite Trainer Aircraft.

1993-1994

v Trail Run

v Commercial Production

1994-1995

v Public issue

v Subject’s Flying Academy - Commencement of Operations

v Appointment of Sales and Service Representative for Commander Aircraft in India.

v Appointment of Authorized Sales Representative for CESSNA CITATION Aircraft in India.

1995-1996

v Appointment of Authorized Sales Representative for CESSNA CARAVAN Aircraft in India

1996-1997

v CREATIVE PARTNER” Award from Aeronautical Development Establishment for development of Remote Pilotless Vehicle (RPV).

v Launching of Net Air Aircraft sharing scheme.

1997-1998

v Manufacture of 6 Seater Aircraft from detailed parts.

v Launching of Aircraft Charter Services for Corporate Sector.

v Commencement of building of 3 Nos Proto type 14 Seater Multi Role Light Transport Aircraft ‘Saras’ in Association with National Aerospace Laboratories (NAL)

1998-1999

v Entry into the business of Manufacturing parts for Space Satellite Launch Vehicles

v Export of Aircraft Parts and Spares

1999-2000

v Development of Aircraft Interior Panels.

v Recognition of subject as R and D Organization by the Department of Scientific and Industrial Research (DSIR), Government of India.

v Introduction of Fractional Ownership Scheme called Corporate Aircraft Program (CAP).

v Memorandum of Understanding with National Aerospace Laboratories (NAL) for manufacture of All Composite Trainer Aircraft “ HANSA-3” at subject’s facilities.

2000-2001

v Development of Homing Transducer Housing for Naval Science and Technological Lab for the first time in India and Letter of appreciation for this unique Development.

v Design and Development of Stretcher for Helicopter.

v Design and Development of Composite Landing Gear for UAV.

2002-2003

v Development of Interior Panels and Parts for Helicopters and Aircraft.

2003-2004

v Assembly of Twin Seater Light Sport Aircraft “Thorpe-T211” for Domestic Market and Kits for USA..

2004-2005

v Development of Auxiliary Fuel tank and Sound Proofing Panels for Helicopters.

2005-2006

v Issue of GDR

2006-2007

v Issue of Equity Shares on Preferential Basis.

v Appointment of subject as “Authorised Service Agency for the maintenance of CESSNA Aircraft in India.

v Development of Bullet Proof Panel for ALH and Window Glasses for Air Force Aircraft.

v AS 9100 B Quality Accreditation.

v Establishment of Maintenance Hangar, Air Traffic Control and Runway for Airbus A320 and Boeing 737 series Aircraft.

v Augmentation of Manufacturing Facilities.

2008-2009

v In principle SEZ approval for Airport/ Aviation sector (including MRO).

2009-2010

v Memorandum of Understanding with Tamilnadu Industrial Development Corporation for Establishment of Aerospace Park.

v Establishment of Design Engineering Business unit.

v National Aerospace and Defense Contractors Accreditation Program (NADCAP) approval for Chemical Processing.

v Landing of first Jet Aircraft Boeing 737 at subject’s Airfield.

2010-2011

v Design and development of Antenna Housing System for Exploration of Minerals.

v Modification of MIG-21 Cockpit to convert as Pilots Training Simulator.

v Development of Weather Radar Radome for Navy Helicopter.

v Building of Mockup Light Utility Helicopter (LUH) for Hindustan Aeronautics Limited (HAL)

v Development of a Number of Technological Processes like

v Titanium hot forming.

v Forming of extruded section using hydraulic press.

v Landing of Jet Aircraft Airbus A 320 and A321 at subject’s Airfield.

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.55.52
UK Pound	1	Rs.88.49
Euro	1	Rs.70.20

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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	-

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.