MIRA INFORM REPORT

Report Date :

25.01.2013

IDENTIFICATION DETAILS

Name :	ZEN AIR TECH PRIVATE LIMITED

Registered Office :	CM-14, GIDC Estate, Sidheshwari Estate, Near New BSNL Telephone Exchange, Naroda, Ahmedabad - 382330, Gujarat.

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	08.06.2005

Com. Reg. No.:	04-046205

Capital Investment / Paid-up Capital :	Rs.1.950 Millions

CIN No.: [Company Identification No.]	U29190GJ2005PTC046205

TAN No.: [Tax Deduction & Collection Account No.]	AHMZ00173F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Air Compressor and Vacuum Pumps, Booster Compressors, Compressor Accessories.

No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 18000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. Also, the company has recorded huge external borrowings. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some cautions.

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

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 PARTED BY

Name :	Mr. Ritesh
Designation :	Head of Accounts Department
Contact No.:	91-79-22819821
Date :	18.01.2013

LOCATIONS

Registered Office/Factory :	CM-14, GIDC Estate, Sidheshwari Estate, Near New BSNL Telephone Exchange, Naroda, Ahmedabad - 382330, Gujarat, India
Tel. No.:	91-79-22819821
Mobile No.:	91-9328423099 (Mr. Vinod Panchal)
Fax No.:	91-79-22829820
E-Mail :	info@zenairtech.com sales@zenairtech.com support@zenairtech.com
Website :	http://zenairtech.com
Location :	Owned

DIRECTORS

As on: 28.09.2012

Name :

Mr. Natwarlal Karsanbhai Panchal

Designation :

Director

Address :

A-22-689, Pratikkunj Co-operative Housing Society, Sanket Bungalows, National Highway No.8, Naroda, Ahmedabad - 382330, Gujarat, India

Date of Birth/Age :

19.12.1968

Qualification :

B. Com

Date of Appointment :

18.06.2005

DIN No.:

01254929

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	U32109GJ1991PTC015228	VINOD HIGH TECH PRIVATE LIMITED	Director	19/03/1991	19/03/1991	-	Amalgamated	NO
2	U29190GJ2005PTC046205	ZEN AIR TECH PRIVATE LIMITED	Director	18/06/2005	18/06/2005	-	Active	NO
3	U29268GJ2006PTC048729	VINTECH INDUSTRIES PRIVATE LIMITED	Director	31/03/2007	31/03/2007	01/03/2010	Active	NO

Name :

Mr. Vinodkumar Karsandas Panchal

Designation :

Director

Address :

53/2,Mohannagar Society, Naroda, Ahmedabad- 382330, Gujarat, India

Date of Birth/Age :

22.06.1969

Qualification :

B. Com

Date of Appointment :

30.06.2007

DIN No.:

01423133

KEY EXECUTIVES

Name :	Mr. Ritesh
Designation :	Head of Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders		No. of Shares
Natvarlal K. Panchcal		75000
Vinodkumar K. Panchal		75000
Rekhaben Natvarlal Panchal		22500
Nayanaben Vinodkumar Panchal		22500
Total		195000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Air Compressor and Vacuum Pumps, Booster Compressors, Compressor Accessories.

Products :	High Pressure Air Compressor Water Cooled - Inter Cooling Systems High Pressure Compressors Two Stage Compressors Single Stage Compressors Vertical Water Cooled Lub / Non Lub Vacuum Pumps Air Receivers Air Dryers Auto Drain Valves Filter for Air Compressors Water Cooled After coolers Spare Parts Standard Scope of Supply

Exports :
Products :	Finished Goods
Countries :	South Africa

Terms :
Purchasing :	Credit (30 Days and 60 Days)

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

Eco Water Solutions Private Limited

No. of Employees :

50 (Approximately)

Bankers :

ICICI Bank, Naroda Road, Ahmedabad, Gujarat, India

Tel. No.: 91-79-65104667/ 65104667

Central Bank of India, Saijpur Bodgha Branch, Naroda Road, Ahmedabad - 382345,Gujarat, India
Cosmos Co-Operative Bank, Naroda Road Branch, Beside Satluj Hotel, Near S. T. Workshop, Naroda Road, Ahmedabad - 380025, Gujarat, India
Kotak Mahlndra Bank
ABN Amco Bank Limited
Union Coop Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Secured loan from others
Future Capital Holdings Limited	3.200	0.000
Short Term Borrowings
Secured Working Capital Loan From Banks
The Union Coop Bank Limited	0.000	0.000
The Cosmos Co-Operative Bank Limited	5.982	4.916
Total	9.182	4.916

Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Unsecured Loans from Banks
Kotak Mahlndra Bank	0.241	0.000
Unsecured Loans from other entities	0	0
Barclays investment India Limited	0.245	0.789
Bajaj Finance Limited	0.000	0.429
Unsecured Loans from related parties	0	0
From Directors and Relatives	0.693	0.170
Short Term Borrowings	0	0
Unsecured Loans from related parties	0.000	0.061
Total	1.179	1.449
Note: Long-term borrowings Secured loan from Future Holdings Limited. is secured by mortgage of residential property of Mr. Natverlal K. Panchal. Director of the company situated at 22. Sanket Bungalows, Naroda Ahmedabad and payable In 180 EM1 of Rs.0.043 Million each commencing from 5^th November, 2011. It’s bearing 13.75% rate of Interest per annum. Unsecured loan from Kotak Mahindra Bank Limited is payable in 24 EM1 of Rs.0.062 Million each commencing from 10th August, 2011. It’s bearing 17.00% rate of interest per annum. Unsecured loan from Barclay’s investment India Limited. is payable in36 EM1 of Rs.0.054 Million each commencing from 3rd August.2010. It’s bearing 18.00% rate of interest per annum. Unsecured loan from Bajaj Finance Limited. is payable in 24 EM1 of Rs. 0.067 Million commencing from 5th December, 2010. It’s bearing 17.28% rate of interest per annum. Outstanding balance as on the date of balance sheet of unsecured loan from Directors and relatives is payable on demand. It’s bearing 15.00% rate of interest per annum. Short Term Borrowings Working capital loan is secured by way of mortgage of land and building of the company situated at CM -12, Near Telephone Exchange Naroda, Ahmedabad and hypothecation of entire stock of raw materials, stores, semi finished and finished goods and all other current assets including book debts and first charge over fixed assets of the company.


Banking Relations :	--

Auditors :
Name :	Patel Mohan Ramesh and Company Chartered Accountants
Address :	C-20,Second Floor, Galaxy Avenue, Naroda, Ahmedabad - 382330, Gujarat, India
Tel. No.:	91-79-22813383 / 22818409
E-Mail :	rnpatelca@hotmail.com
PAN.:	AABFP5408N

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

195000	Equity Shares	Rs.10/- each	Rs.1.950 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.950	1.650	0.550
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.715	2.072	1.470
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4.665	3.722	2.020
LOAN FUNDS
1] Secured Loans		9.182	4.916	2.138
2] Unsecured Loans		1.179	1.449	0.845
TOTAL BORROWING		10.361	6.365	2.983
DEFERRED TAX LIABILITIES		0.034	0.009	0.000

TOTAL		15.060	10.096	5.003

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		5.030	2.009	1.210
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		1.400	0.100	0.071
DEFERREX TAX ASSETS		0.000	0.000	0.017

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.593	11.018	2.740
	Sundry Debtors	10.302	6.170	5.700
	Cash & Bank Balances	1.530	1.441	0.212
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.416	6.329	1.920
Total Current Assets		22.841	24.958	10.572
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.665	10.839	5.634
	Other Current Liabilities	3.642	5.499	0.996
	Provisions	0.904	0.633	0.237
Total Current Liabilities		14.211	16.971	6.867
Net Current Assets		8.630	7.987	3.705

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		15.060	10.096	5.003

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	50.171	35.940	28.070
		Other Income	0.088	0.011
		TOTAL (A)	50.259	35.951	28.070

Less	EXPENSES
		Office Expenses	47.389	33.709	26.529
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	47.389	33.709	26.529

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.870	2.242	1.542

Less	FINANCIAL EXPENSES (D)		1.565	1.112	0.642

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.305	1.130	0.900

Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.322	0.228	0.145

	PROFIT BEFORE TAX (E-F) (G)		0.982	0.901	0.755

Less	TAX (H)		0.339	0.299	0.246

	PROFIT AFTER TAX (G-H) (I)		0.643	0.602	0.509

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.072	1.470	0.961

	BALANCE CARRIED TO THE B/S		2.715	2.072	1.470

	EARNINGS IN FOREIGN CURRENCY		7.591	2.287	2.110

	IMPORTS
		Trading Goods and Services	0.337	0.136	0.000
	TOTAL IMPORTS		0.337	0.136	0.000

	Earnings Per Share (Rs.)		3.74	7.94	9.25

Expected Sales (2012-13): Rs.70.000 Millions

The above information has been parted by Mr. Ritesh Panchal.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.28	1.67	1.81

Net Profit Margin (PBT/Sales)	(%)	1.96	2.51	NA

Return on Total Assets (PBT/Total Assets}	(%)	3.52	3.24	6.46

Return on Investment (ROI) (PBT/Networth)		0.21	0.24	0.37

Debt Equity Ratio (Total Liability/Networth)		5.27	6.27	4.88

Current Ratio (Current Asset/Current Liability)		1.61	1.47	1.54

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	Yes
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	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

OPERATIONS:

The company has achieved sales turnover of Rs. 50.171 Millions (Previous year – 35.940 Millions) during the year The Company has achieved moderate increase in sales turnover during the year. The company has achieved net profit of Rs. 0.643 Millions (Previous year Rs. 0.602 Millions) after interest, depreciation and Tax.

FIXED ASSETS:

Computer
Motor Car
Office Equipment
Office Furniture
Pattern
Plant and Machinery
Factory Shed
Scooter
Mobile Phone

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.53.85
UK Pound	1	Rs.85.26
Euro	1	Rs.71.72

INFORMATION DETAILS

Information Gathered by :	PLK

Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.

MIRA INFORM REPORT

9.593

10.302

1.530

0.000

1.416

22.841

9.665

3.642

0.904

14.211

8.630

1.28

1.96

3.52

0.21

5.27

1.61

Unit