MIRA INFORM REPORT

Report Date :

20.09.2013

IDENTIFICATION DETAILS

Name :	AKONA ENGINEERING PRIVATE LIMITED
Registered Office :	WZ-23/A, Gali No.32, Santgarh, New Delhi – 110018
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.01.2006
Com. Reg. No.:	55-144576
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U21199DL2006PTC144576
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacturing and trading of Building Construction Machinery and Ready Mix Concrete.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 200000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Profit margin of company is drastically declining from last financial year. However, trade relations of company are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 DECLINED

Management Non – Cooperative (91-120.4536712)

LOCATIONS

Registered Office :	WZ-23/A, Gali No.32, Santgarh, New Delhi – 110 018, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	akona_accounts@yahoo.com rsassociate@gmail.com rsa.fcs@gmail.com cs.rsmco@gmail.com info@akonahycon.com
Websites:	http://www.akonaengineers.com
Location :	Owned
Factory :	A-455, Hycon House, Behind Hindon Motels, Hindon Vihar, Delhi Meerut Road, Ghaziabad – 201 001, Uttar Pradesh, India
Tel. No.:	91-120-4536700/ 2833334/ 4536712
Fax No.:	91-120-2854742
Branch Office :	Located at: v Raipur v Patna v Punjab v Lucknow

DIRECTORS

As on 28.09.2012

Name :

Mr. Anand Ram Bharose Rathore

Designation :

Director

Address :

59, New Gandhi Nagar, Ghaziabad – 201 001, Uttar Pradesh, India

Date of Birth/Age :

11.07.1983

Qualification

Bachelor of Commerce

Date of Appointment :

09.01.2006

DIN No.:

00544882

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	U21199DL2006PTC144576	AKONA ENGINEERING PRIVATE LIMITED	Director	09/01/2006	09/01/2006	-	Active	NO
2	U70200DL2009PTC195510	AKONA INFRASTRUCTURE PRIVATE LIMITED	Director	26/10/2009	26/10/2009	-	Active	NO
3	U70109DL2011PTC222588	AKONA PATHWARI INFRASTRUCTURE PRIVATE LIMITED	Director	20/07/2011	20/07/2011	-	Active	NO

Name :

Mr. Ram Bharose Rathore

Designation :

Director

Address :

59, New Gandhi Nagar, Ghaziabad – 201 001, Uttar Pradesh, India

Date of Birth/Age :

04.06.1964

Qualification :

MCA

Date of Appointment :

09.01.2006

DIN No.:

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	U21199DL2006PTC144576	AKONA ENGINEERING PRIVATE LIMITED	Director	09/01/2006	09/01/2006	-	Active	NO
2	U70200DL2009PTC195510	AKONA INFRASTRUCTURE PRIVATE LIMITED	Director	26/10/2009	26/10/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Ram Bharose Rathore	614450
Kamla Rathore	23000
Anand Rathore	332500
Dhan Singh	50
Neelam Rathore	30000
Total	1000000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.000
Other top fifty shareholders
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing and trading of Building Construction Machinery and Ready Mix Concrete.
Products :	v Fully Automatic Computerised  Batching and Mixing Plant v Drum Type Concrete Batching and Mixing Plant v Mini Mobile Concrete and Batching Plant v Mini Mobile Concrete Batching and Mixing Plant with 3-Bins v Pan Type Concrete Batching and Mixing Plant  v Concrete Mixer Machines v Builder Hoist v Road Roller v Hot Mix Plant v Weigh Batcher and Related Spare Parts

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

v ICICI Bank Limited, Land Mark Race Course Circle, Vadodara – 390 007, Gujarat, India

v Bank of Baroda, Shastri Nagar, Ghaziabad – 201 001, Uttar Pradesh, India

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v Punjab National Bank, Branch Rudki, Ghaziabad, Uttar Pradesh, India

v Small Industries Development Bank of India, C-60, Sector-2, Noida – 201 301, Uttar Pradesh, India

v Kotak Mahindra Bank

v Andhra Bank

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Term Loan From SIDBI	1.850	5.600
Vehicle
From Bank	0.252	1.598
From other	0.021	0.135
Machinery Loan
From Bank	0.000	1.596
From Other	0.157	1.050
Short-term borrowings
Form Bank	19.344	10.838
Total	21.624	20.817

Banking Relations :
Auditors :
Name :	Arun K. Gupta and Associates Chartered Accountants
Address :	D-58, East of Kailash, New Delhi – 110 065, India
Tel No.:	91-11-26287884
Fax No.:	91-11-26472939
E-Mail :	akgassociates@gmail.com
Income-tax PAN of auditor or auditor's firm	AAOPG5265F
Enterprises owned of significantly influenced by key management personnel of their relatives :	v Anand Engineering Corporation v Mohan Engineering Corporation v Hycon v Akona Infrastructure Private Limited v Akona Pathwari Infrastructure Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	4.025
(b) Reserves & Surplus	40.300	37.417
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	50.300	41.442
(3) Non-Current Liabilities
(a) long-term borrowings	2.280	9.979
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2.280	9.979
(4) Current Liabilities
(a) Short term borrowings	20.352	11.946
(b) Trade payables	52.109	30.671
(c) Other current liabilities	22.539	27.653
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	95.000	70.270
TOTAL	147.580	121.691
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	37.886	47.803
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	1.452	0.425
(d) Long-term Loan and Advances	0.086	0.000
(e) Other Non-current assets	6.414	3.503
Total Non-Current Assets	45.838	51.731
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	35.887	7.682
(c) Trade receivables	51.733	54.117
(d) Cash and cash equivalents	6.080	4.426
(e) Short-term loans and advances	8.042	3.735
(f) Other current assets	0.000	0.000
Total Current Assets	101.742	69.960
TOTAL	147.580	121.691

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.025
2] Share Application Money		0.000
3] Reserves & Surplus		29.087
4] (Accumulated Losses)		0.000
NETWORTH		33.112
LOAN FUNDS
1] Secured Loans		43.053
2] Unsecured Loans		1.672
TOTAL BORROWING		44.725
DEFERRED TAX LIABILITIES		0.665
TOTAL		78.502
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.049
Capital work-in-progress		0.693
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.873
	Sundry Debtors	53.907
	Cash & Bank Balances	2.987
	Other Current Assets	0.499
	Loans & Advances	11.478
Total Current Assets		76.744
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.413
	Other Current Liabilities	14.536
	Provisions	1.035
Total Current Liabilities		44.984
Net Current Assets		31.760
MISCELLANEOUS EXPENSES		0.000
TOTAL		78.502

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	251.756	279.819
		Other Income	0.862	0.166
		TOTAL	252.618	279.985	205.312
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	249.162	271.097	193.808
	PROFIT BEFORE TAX		3.456	8.888	11.504
Less	TAX		0.573	0.558	2.170
	PROFIT AFTER TAX		2.883	8.330	9.334
	Earnings Per Share (Rs.)
	- Basic		2.88	20.70	50.47
	- Diluted		2.88	20.70	50.47

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.14	2.98	4.55
Net Profit Margin (PBT/Sales)	(%)	1.37	3.18	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.37	7.33	9.37
Return on Investment (ROI) (PBT/Networth)		0.07	0.21	0.35
Debt Equity Ratio (Total Debt /Networth)		0.45	0.53	1.35
Current Ratio (Current Asset/Current Liability)		1.07	1.00	1.71

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	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	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

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Unsecured loan from related party	1.008	1.108
Total	1.008	1.108

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10352015	05/07/2013 *	110,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B81113334
2	10350835	05/07/2013 *	110,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B80762354
3	10200126	28/01/2010	20,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	C - 60, SECTOR- 2, NOIDA, NOIDA, UTTAR PRADESH - 201301, INDIA	A78102399
4	10171813	04/07/2009	1,382,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A68171313
5	10018204	19/08/2006	750,000.00	ICICI BANK LIMITED	LAND MARK RACE COURSE CIRCLE, VADODARA, GUJARAT - 390007, INDIA	A03972627

Note: * Date of charge modification

FIXED ASSETS:

v Freehold Land

v Building Factory

v Plant and Machinery

v T.M. and Pump A/c

v Furniture and Fixture

v Office Equipment

v Computer

v Vehicle

v Air Conditioner

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.61.75
UK Pound	1	Rs.99.56
Euro	1	Rs.83.55

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	KVT

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		43

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.