MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	AVIATORS (INDIA) PRIVATE LIMITED
Registered Office :	1309, Brigade Towers, 135 Brigade Road, Bangalore – 560025, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.10.1996
Com. Reg. No.:	08-021303
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U62100KA1996PTC021303
PAN No.: [Permanent Account No.]	AABCA4499H
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Aircraft Charters, Aircraft Sales, Flight Handling Helicopter and Aircraft Management.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 53000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge accumulated losses recorded by the company. The external borrowing appears to be huge. However, trade relations are reported to be fair. Business is active. Payments are slow. The company can be considered for business dealings with great 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 :	1309, Brigade Towers, 135 Brigade Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-22219838/ 9839
Fax No.:	91-80-22213849
E-Mail :	aviators@vsnl.com
Website :	http://www.aviatorsindia.com

DIRECTORS

As on: 28.09.2012

Name :

Mr. Arun Balkeshwar Sharma

Designation :

Managing Director

Address :

No. 126, B4, Devalaya, 3^rd Main, 6^th Cross, Defense Colony, Indiranagar, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

18.05.1962

Date of Appointment :

22.10.1996

PAN No.:

ABWPS2674K

DIN No.:

00392826

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	U62100KA1996PTC021303	AVIATORS (INDIA) PRIVATE LIMITED	Managing director	22/10/1996	22/10/1996	-	Active	NO
2	U74140KA2004PTC033280	ESURANCE CONSULTANCY PRIVATE LIMITED	Managing director	30/06/2004	30/06/2004	-	Strike off	NO
3	U51410KA2005PTC036516	AVIATORS OIL PRIVATE LIMITED	Managing director	09/06/2005	09/06/2005	-	Strike off	NO

Name :

Mrs. Babita Sharma

Designation :

Director

Address :

No. 126, B4, Devalaya, 3^rd Main, 6^th Cross, Defense Colony, Indiranagar, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

01.08.1973

Date of Appointment :

22.10.1996

PAN No.:

ABWPS2675J

DIN No.:

00471387

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	U62100KA1996PTC021303	AVIATORS (INDIA) PRIVATE LIMITED	Director	22/10/1996	22/10/1996	-	Active	NO
2	U74140KA2004PTC033280	ESURANCE CONSULTANCY PRIVATE LIMITED	Director	30/06/2004	30/06/2004	-	Strike off	NO
3	U51410KA2005PTC036516	AVIATORS OIL PRIVATE LIMITED	Director	09/06/2005	09/06/2005	-	Strike off	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Arun Balkeshwar Sharma	4000000
Babita Sharma	1000000
Total	5000000

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 :

Trader of Aircraft Charters, Aircraft Sales, Flight Handling Helicopter and Aircraft Management.

Products :

Product Description	ITC Code
Charter Services	9961
Charter Services and other related services	99611823

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Deutsche Bank
• HSBC Bank Limited
• ICICI Bank Limited, 2B, Groky Terrace, Kolkata - 700017, West Bengal, India
• State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks	95.179	0.454
Rupee term loans from others	30.917	0.000
Total	126.096	0.454

Banking Relations :	--
Auditors :
Name :	B N Subramanya and Company Chartered Accountants
Address :	No. 101, R. V-15, E Block, 6th Main, Malleswaram, Bangalore – 560003, Karnataka, India
PAN No.:	AAAFB6412D

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 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		50.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	5.866
4] (Accumulated Losses)		(36.671)	(15.323)	(7.180)
NETWORTH		13.329	4.677	18.686
LOAN FUNDS
1] Secured Loans		126.096	0.454	3.763
2] Unsecured Loans		34.775	19.637	6.200
TOTAL BORROWING		160.871	20.091	9.963
DEFERRED TAX LIABILITIES		6.671	0.000	0.000
TOTAL		180.871	24.768	28.649
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		134.566	3.684	4.740
Capital work-in-progress		37.878	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	1.225	0.912
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	3.762	0.734	15.467
	Cash & Bank Balances	18.722	0.217	1.162
	Other Current Assets	1.672	0.819	0.000
	Loans & Advances	23.081	34.252	29.140
Total Current Assets		47.237	36.022	45.769
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.571	4.476	16.253
	Other Current Liabilities	30.547	8.477	2.039
	Provisions	0.692	3.210	4.480
Total Current Liabilities		38.810	16.163	22.772
Net Current Assets		8.427	19.859	22.997
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		180.871	24.768	28.649

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	49.485	19.344	35.204
Less	EXPENSES
		Direct Expenses		9.418	6.716
		Selling and distribution Overheads		7.248	3.206
		Administrative Overheads		6.502	9.811
		Remuneration to Directors		5.739	4.968
		Staff Remuneration and Benefits		3.323	3.321
		TOTAL (B)	56.441	32.230	28.022
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(6.956)	(12.886)	7.182
Less	FINANCIAL EXPENSES (D)		4.556	0.436	1.159
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(11.512)	(13.322)	6.023
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.457	1.000	1.366
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(15.969)	(14.322)	4.657
Less	TAX (H)		5.379	(0.313)	2.316
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(21.348)	(14.009)	2.341
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(21.189)	(7.180)	(9.521)
	BALANCE CARRIED TO THE B/S		(42.537)	(21.189)	(7.180)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14.013	18.001	45.967
	TOTAL EARNINGS		14.013	18.001	45.967
	Earnings/ (Loss) Per Share (Rs.)		(4.27)	(0.70)	1.17

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(43.14)	(72.42)	6.65
Return on Total Assets (PBT/Total Assets}	(%)	(8.78)	(36.07)	9.22
Return on Investment (ROI) (PBT/Networth)		(1.20)	(3.06)	0.25
Debt Equity Ratio (Total Debt/Networth)		12.07	4.30	0.53
Current Ratio (Current Asset/Current Liability)		1.22	2.23	2.01

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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Rupee term loans from others	34.775	19.637
Total	34.775	19.637

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U62100KA1996PTC021303
Name of the company	AVIATORS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1309, Brigade Towers, 135 Brigade Road, Bangalore – 560025, Karnataka, India E-mail: aviators@vsnl.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	ICICI Bank Limited, 2B, Groky Terrace, Kolkata - 700017, West Bengal, India E-mail: ayush.jhunjhunwala@icicibank.com
Nature of instrument creating charge	1) Deed of hypothecation dated 19.01.2012 2) Credit arrangement letter dated 29.11.2011 3) Letter received from government of India, department of civil aviation dated 16/01/2012 (all the above documents pertains to a single charge)
Date of instrument Creating the charge	19.01.2012
Amount secured by the charge	Rs.110.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest I Base rate + Spread per annum as communicated by the bank periodically (at intervals of 12 months) + Applicable interest tax or other statutory levy if any. (Current: I Base- 10% Spread: 2.75%) Terms of Repayment Repayment of total drawn down amount in 22 equal installments starting after 9 months from the date of the first disbursement. Margin The borrower shall maintain Debts Service Reserve Account (DSRA) equal to the next two-quarter principal and interest repayment obligations in the form of fixed deposit with ICICI Bank to be lien marked in favour of ICICI Bank. In case the loan is drawn in tranches, the DSRA has to be maintained only to the extent of the facility drawn. Extent and Operation of the charge 1st charge on all the rights, title, interest, benefits, claims and demands of borrower in and to the particular aircraft model no. PC-12/47, Registration No. VT-TEM including the airframe, engines, electronics and all appurtent equipment First charge on all the rights, title, interest, benefits, claims and demands of borrower in and to the receivables arising or accruing from aircraft described above and in respect of all insurance contracts relating to the hypothecated property.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Aircraft model no. PC-12/47, to be inserted and registered with Directorate General of Civil Aviation with Registration No. VT-TEM including airframe, engines and all appurtenant equipment. All receivables arising or accruing to the borrower from aircraft described above. All the rights, title, interest, benefits, claims and demands of borrower in in respect of all insurance contracts relating to the hypothecated property.

FIXED ASSETS:

Tangible Assets

• Furniture and Fixtures
• Vehicles
• Aircrafts Helicopters
• Office Equipment
• Computer Equipments

Intangible Assets

• Computer 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 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	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.