MIRA INFORM REPORT

Report Date :

17.12.2013

IDENTIFICATION DETAILS

Name :	AIR FLOW EQUIPMENTS (INDIA) PRIVATE LIMITED
Registered Office :	No.9, Chelliaman Koil Street, Keelkattalai, Chennai – 600117, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.12.1998
Com. Reg. No.:	18-041571
Capital Investment / Paid-up Capital :	Rs. 40.000 Millions
CIN No.: [Company Identification No.]	U29309TN1998PTC041571
TAN No.: [Tax Deduction & Collection Account No.]	CHEA03129A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Heating, Ventilation and Air Conditioning Systems (HVAC) and also Supplier of Equipments.
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 :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company appears to be low. However, trade relations are fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealings with some caution. The rating takes into consideration delay by company in payment of its debt obligations, due to weak liquidity, marked by almost fully utilized bank lines and inadequate cash accruals.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “D”
Rating Explanation	Default
Date	28.11.2012

Reason: Delay by company in payment of its term debt obligations, due to weak liquidity.

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 :	No.9, Chelliaman Koil Street, Keelkattalai, Chennai – 600117, Tamilnadu, India
Tel. No.:	91-44-22474783/ 84/ 22470350
Fax No.:	91-44-22474783
E-Mail :	rai_chennai@hotmail.com enquiry@airflor.co.in
Website:	www.airflow.co.in
Corporate Office :	No.12, Thiruvalluvar Street, Keelkattalai, Chennai – 600117, Tamilnadu, India

DIRECTORS

As on 28.09.2013

Name :	Mr. Venkatesan Dakshinamoorthy
Designation :	Director
Address :	No.9, Chelliaman Koil Street, Keelkattalai, Chennai – 600 117, Tamilnadu, India
Date of Birth/Age :	12.03.1965
Date of Appointment :	14.12.1998
DIN No. :	00232210
Name :	Mr. Manikandan Dakshinamoorthy
Designation :	Director
Address :	No.9, Chelliaman Koil Street, Keelkattalai, Chennai – 600 117, Tamilnadu, India
Date of Birth/Age :	12.10.1980
Date of Appointment :	18.08.2005
DIN No. :	00232275

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares
Dakshinamoorthy Venkatesan	2000000
Dakshinamoorthy Manikandan	2000000
Total	4000000

As on 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Heating, Ventilation and Air Conditioning Systems (HVAC) and also Supplier of Equipments.

GENERAL INFORMATION

Customers :

· Bharath Earth Movers Limited

BHEL

Deccan Extrusion (Private) Limited

Horiba India Private Limited

Sakthi Industries

TL Metal Works

Universal Engineers Chennai Private Limited

KSTDC Limited

No. of Employees :

Not Available

Bankers :

· Punjab National Bank, Nungambakkam High Road, Nungambakkam, Chennai - 600034, Tamilnadu, India

Union Bank of India, Mylapore Branch, P S Sivaswamy Salai Mylapore, Chennai - 600004, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
From Loan
Term Loan with UBI – A/c No.008	17.768	19.858
Term Loan with UBI – A/c No.009	101.306	99.294
Term Loan with Kotak Mahindra Bank Limited	0.639	3.269
Term Loan with HDFC Bank	0.156	0.718
Bajaj Finance	0.000	1.340
Axis Bank	0.558	0.000
From Others
Loans and Advances from Related Parties
D Manikandan	3.333	1.048
D Vekatesan	9.666	7.153
Airtrec Equipments	3.350	0.000
Nanthini	0.490	0.000
Revathy	1.745	0.000
SHORT TERM BORROWINGS
Cash Credit with UBI (Secured against Stock and Book Debts)	50.542	44.214
Total	189.553	176.894

Banking Relations :	--
Auditors :
Name :	G Sekar Associates Chartered Accountants
Address :	No.27, Akbarabad Second Street, Kodambakkam, Chennai – 600024 Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAOFS1488C
Related Parties :	· Airtec Equipments Raghavendra Industries

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs.10/- each	Rs. 40.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	40.000	40.000	40.000
(b) Reserves & Surplus	18.933	17.189	15.359
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	58.933	57.189	55.359
(3) Non-Current Liabilities
(a) long-term borrowings	139.011	132.680	35.217
(b) Deferred tax liabilities (Net)	0.510	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	139.521	132.680	35.217
(4) Current Liabilities
(a) Short term borrowings	50.542	44.214	18.552
(b) Trade payables	72.480	44.770	50.317
(c) Other current liabilities	7.105	5.652	20.743
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	130.127	94.636	89.612
TOTAL	328.581	284.505	180.188
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	115.567	20.800	21.004
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	106.678	173.143	58.756
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.539	0.911	0.708
(d) Long-term Loan and Advances	0.844	0.863	1.925
(e) Other Non-current assets	0.715	0.785	0.733
Total Non-Current Assets	224.343	196.502	83.126
(2) Current assets
(a) Current investments	0.500	0.500	0.000
(b) Inventories	41.413	37.997	37.519
(c) Trade receivables	59.977	45.684	52.474
(d) Cash and cash equivalents	0.399	2.211	0.477
(e) Short-term loans and advances	1.504	1.003	6.029
(f) Other current assets	0.445	0.608	0.563
Total Current Assets	104.238	88.003	97.062
TOTAL	328.581	284.505	180.188

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	155.175	165.210	230.042
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		2.913	2.891	19.126
Less	TAX		1.168	(0.938)	6.156
	PROFIT/ (LOSS) AFTER TAX		1.745	1.829	12.970
	EARNINGS IN FOREIGN CURRENCY		0.000	2.092	0.000
	IMPORTS
		Raw Materials			8.893
		Capital Goods			24.330
	TOTAL IMPORTS		NA	NA	33.223
	Earnings / (Loss) Per Share (Rs.)		0.44	0.46	5.63

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	1.32	2.62	15.84
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.35
Debt Equity Ratio (Total Debt/Networth)		3.22	3.09	0.97
Current Ratio (Current Asset/Current Liability)		0.80	0.93	1.08

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	Yes
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	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/ MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10072125	03/07/2013 *	63,000,000.00	UNION BANK OF INDIA	MYLAPORE BRANCH, P S SIVASWAMY SALAI MYLAPORE, CHENNAI - 600004, TAMILNADU, INDIA	B79214276

* Date of charge modification

FIXED ASSETS

· Computer

Plant and Machinery

Furniture and Furniture

Vehicle

Car

Kargo Trax

Air Conditioner

UPS

Building

Land and Building under construction

Machinery

Electrical Equipments

CREO Elements

Office Equipments

Planning 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 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.62.10
UK Pound	1	Rs.101.27
Euro	1	Rs.85.43

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.