MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	AIMS INDUSTRIES LIMITED (w.e.f. 19.07.2005)
Formerly Known As :	AIMS OXYGEN LIMITED (w.e.f. 07.02.2001) AIMS OXYGEN PRIVATE LIMITED
Registered Office :	Besides GEB Sub-Station, At and P.O. Gavasad, Taluka Padra, District Vadodara – 391430, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.11.1961
Com. Reg. No.:	04-001103
Capital Investment / Paid-up Capital :	Rs.47.943 Millions
CIN No.: [Company Identification No.]	U29199GJ1961PLC001103
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Supplier of Industrial and Medical Gases.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 1160000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears continuous losses recorded by the company due to which the reserve of the company deteriorating. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution.

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.

LOCATIONS

Registered Office/ Corporate Office/ Factory 1 :	Besides GEB Sub-Station, At and P.O. Gavasad, Taluka Padra, District Vadodara – 391430, Gujarat, India
Tel. No.:	91-2662-243051
Fax No.:	91-2662-243052/ 243050
E-Mail :	dipak@aims.co.in hemang@aims.co.in
Factory 2 :	Plot No. 7101 and 720, GIDC, Road No.55, Sachin, Surat – 394230, Gujarat, India
Factory 3 :	Opposite Observation Home, Gondal Road, Rajkot – 360002, Gujarat, India
Factory 4 :	Survey No.67/3 (12), Daman Kunta Road, Opposite Bhenslore Distillery, Near Excise Check Post, Nani Daman – 396210, Daman and Diu, India
Factory 5 :	L. K. Patel Timber Mart. Behind Lake View Hotel, Near Narol Cross Road, Ahmedabad, Gujarat, India
Factory 6 :	13/2, Panelav, Taluka Halol, P.O Tajpura, District Panchmahal – 389350, Gujarat, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Unmesh Ramchandra Mehta
Designation :	Whole Time Director
Address :	7, Soham Bunglows, Vasna Road, Vadodara – 390015, Gujarat, India
Date of Appointment :	01.08.1999
DIN No.:	00034658
Name :	Mr. Alerkkumar Asokkumar Patel
Designation :	Whole Time Director
Address :	Aims House, Old Padra Road, Vadodara – 390020, Gujarat, India
Date of Appointment :	01.04.1995
DIN No.:	00034589
Name :	Mr. Siddharthbhai Patel Ashokkumar
Designation :	Whole Time Director
Address :	Aims House, Old Padra Road, Vadodara – 390020, Gujarat, India
Date of Appointment :	01.04.1995
DIN No.:	00034594
Name :	Mr. Anish Alerk Patel
Designation :	Whole Time Director
Address :	Aims House, Old Padra Road, Vadodara – 390020, Gujarat, India
Date of Appointment :	01.10.2004
DIN No.:	00034602
Name :	Mr. Shwetanshu Siddharth Patel
Designation :	Whole Time Director
Address :	Aims House, Old Padra Road, Vadodara – 390020, Gujarat, India
Date of Appointment :	08.01.2005
DIN No.:	00034612
Name :	Mr. Ashokkumar Raojeebhai Patel
Designation :	Whole Time Director
Address :	Aims House, Old Padra Road, Vadodara – 390020, Gujarat, India
Date of Appointment :	05.03.1998
DIN No.:	00034584
Name :	Ms. Shreyanshi Siddharthbhai Patel
Designation :	Whole Time Director
Address :	Aims House, Old Padra Road, Vadodara – 390020, Gujarat, India
Date of Appointment :	25.09.2010
DIN No.:	02815638

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Ashokkumar Raojeebhai Patel	469300
Alerkkumar Asokkumar Patel	469300
Siddharthbhai Patel Ashokkumar	469300
Ashmini Alerk Patel	386900
Smita Siddharth Patel	386900
Anish Alerk Patel	298040
Shwetanshu Siddharth Patel	298040
Shreyanshi Siddharthbhai Patel	276660
Aims Oxygen Private Limited, India	8800
Shivani Shwetanshu Patel	201130
Aastha Anish Patel	94400
Sahaj Shwetanshu Patel	94400
Alerkkumar Asokkumar Patel (HUF)	285000
Siddharth Ashokkumar (HUF)	285000
Anish Alerk Patel (HUF)	285000
Shwetanshu Siddharth Patel (HUF)	285000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	0.83
Directors or relatives of directors	99.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Industrial and Medical Gases.

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity
Acetylene Gas	NA	324000 M3
Oxygen Gas	NA	20771000 M3

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Vepar Vikas Co-operative Bank Limited
• Baroda Peoples Co-operative Bank Limited
• Indian Bank, Raopura Branch, Raopura, Vadodara – 390001, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans from Banks	7.561	0.000
Term Loans from Others	0.000	1.530
Working Capital Loans from Banks	26.990	2.050
Total	34.551	3.580

Banking Relations :	--
Auditors :
Name :	A.M. Gandhi and Company Chartered Accountants
Address :	211, Narmada Apartment, Raopura, Baroda – 390001, Gujarat, India
PAN No.:	AASPG1597N
Associate Company :	Aims Oxygen Private Limited Asoksons Construction Private Limited Aims Pharma Private Limited Baroda Medical Gases Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5100000	Equity Shares	Rs.10/- each	Rs.51.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4794300	Equity Shares	Rs.10/- each	Rs.47.943 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		47.943	47.943	47.943
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		243.075	253.284	262.877
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		291.018	301.227	310.820
LOAN FUNDS
1] Secured Loans		34.551	3.580	6.859
2] Unsecured Loans		16.143	17.854	11.439
TOTAL BORROWING		50.694	21.434	18.298
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
CYLINDERS SECURITY DEPOSITS		0.000	0.000	19.218
TOTAL		341.712	322.661	348.336
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		201.506	192.956	201.070
Capital work-in-progress		5.864	9.776	0.459
INVESTMENT		0.556	0.605	0.605
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.831	11.856	8.203
	Sundry Debtors	49.311	49.036	61.848
	Cash & Bank Balances	58.494	57.550	57.545
	Other Current Assets	15.647	16.786	0.000
	Capital with Firm	0.000	0.000	0.191
	Loans & Advances	44.933	30.841	38.838
Total Current Assets		191.216	166.069	166.625
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.924	20.130	16.123
	Other Current Liabilities	32.726	26.615	3.298
	Provisions	2.780	0.000	1.409
Total Current Liabilities		57.430	46.745	20.830
Net Current Assets		133.786	119.324	145.795
MISCELLANEOUS EXPENSES		0.000	0.000	0.407
TOTAL		341.712	322.661	348.336

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	287.781	263.930	245.759
		Other Income	6.886	6.268	9.917
		TOTAL (A)	294.667	270.198	255.676
Less	EXPENSES
		Cost of Material Consumed	59.688	46.490
		Purchases of Stock-in-Trade	24.312	12.428
		Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-trade	(9.700)	0.092
		Employee Benefit Expenses	38.120	31.716
		Amortization Expenses	0.058	0.058
		Other Expenses	162.438	162.996
		TOTAL (B)	274.916	253.780	231.646
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.751	16.418	24.030
Less	FINANCIAL EXPENSES (D)		4.364	2.261	6.457
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.387	14.157	17.573
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.596	23.750	25.797
	PROFIT BEFORE TAX (E-F) (G)		(10.209)	(9.593)	(8.224)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		(10.209)	(9.593)	(8.224)
	IMPORTS
		Raw Materials	0.000	5.969	6.169
		Capital Goods	4.649	2.076	4.851
	TOTAL IMPORTS		4.649	8.045	11.020
	Earnings Per Share (Rs.)		(2.13)	(2.00)	(1.72)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(3.46)	(3.55)	(3.22)
Net Profit Margin (PBT/Sales)	(%)	(3.55)	(3.63)	(3.35)
Return on Total Assets (PBT/Total Assets}	(%)	(2.60)	(2.67)	(2.24)
Return on Investment (ROI) (PBT/Networth)		(0.04)	(0.03)	(0.03)
Debt Equity Ratio (Total Debt/Networth)		0.17	0.07	0.06
Current Ratio (Current Asset/Current Liability)		3.33	3.55	8.00

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	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	No

Note:

The Registered Office of the company has been shifted from Baroda, Gujarat, India to the present address w.e.f. 19.01.2008

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Public Fixed Deposits	1.326	3.104
Loans from Related Parties	14.817	14.750
Total	16.143	17.854

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Liabilities in respect of Guarantees issued by the Bank	1.300	1.300

FIXED ASSETS

• Land
• Buildings
• Plant and Machineries
• Cylinders
• Electrical Installation and Equipments
• Furniture and Fixtures
• Air Conditioners and Refrigeration
• Office Equipments / Computers
• Vehicles
• Books

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.16
UK Pound	1	Rs.81.75
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		37

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.