MIRA INFORM REPORT

Report Date :

05.02.2007

IDENTIFICATION DETAILS

Name :	THE KCP LIMITED
Registered Office :	Ramakrishna Buildings, 2, Dr. P. V. Cherian Crescent, Egmore, Chennai – 600008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	03.07.1941
Com. Reg. No.:	18-1128
TAN No.: (Tax Deduction & Collection Account No.)	CHET00160G
Legal Form :	Public Limited Liability Company. The company's shares are listed on Stock Exchanges.
Line of Business :	Manufacturing of cement, cement machinery, sugar machinery, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 4000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered / Corporate Office :	Ramakrishna Buildings, 2, Dr. P. V. Cherian Crescent, Egmore, Chennai – 600008, Tamilnadu, India
Tel. No.:	91-44-28270687/1899/9533 / 8187/66772600/2615-19
Fax No.:	91-44-28255762/66772620
E-Mail :	kcp@vsnl.com kcp@md2.vsnl.net.in
Website :	http://www.kcp.co.in
Factory 1 :	Engineering Division Ø P. O. Box No. 2278, Tiruvottiyur, Chennai – 600 019, Tamilnadu Tel No. 91-44-25733301 / 302 / 304-8 Fax No. 91-44-25733419 E Mail : kcptvt@vsnl.com, engineering@kcp.co.in Ø Mosur Road, Ekhunagar, Arkonam – 631004, Tamilnadu Electricity Energy Hydel Unit Ø B. No. AE - 1, NSP Colony, Nekarikallu – 522615, Guntur District, Andhra Pradesh Tel. No. 91-8647-241269 E Mail : hydel@kcp.co.in Cement Division Ø Macherla – 52 426, Guntur District, Andhra Pradesh Tel. No. 91-8642-272303-5 Fax No. 91-8642-272350 E Mail : mclkcp@hd2.dot.net.in, gm.macherla@kcp.co.in Cement Marketing – Head Office Ø 6-3-551, Somajiguda, Hyderabad – 500 082, Andhra Pradesh Tel. No. 91-40-23310799 / 4860 Fax No. 91-40-23313922 E Mail : tmrdkcp@hd1.vsnl.net.in, hyderabad@kcp.co.in Wind Power Ø Thandayarkulam Village, Radhapuram Taluk, Tirunelveli District, Tamilnadu
Branches :	203, Arun Chambers, 2^nd Floor, J. Dadaji Road, Tardeo, Mumbai - 400034 Phone : 91-22 23512465 Fax : 91-22 23522319 E-Mail: kcp@bom3.vsnl.net.in Annapurna Apartments, 10-E, 10^th Floor, 68 Ballygange Circular Road, Kolkata - 700019 Phone : 91-33 22809204 / 22477742 Located at : · Hyderabad, Andhra Pradesh · New Delhi

DIRECTORS

Name :	Mr. V. L. Dutt
Designation :	Chairman & Managing Director
Name :	Mr. Indira V. L. Dutt
Designation :	Joint Managing Director
Name :	Mr. Kavitha D. Chitturi
Designation :	Executive Director
Name :	Mr. Ramakrishnan V. H.
Designation :	Director - Nominee (IDBI)
Name :	Mr. S. Nandgopal
Designation :	Director
Name :	Mr. C. V. R. Panikar
Designation :	Director
Name :	Mr. Nandagopal S.
Designation :	Director
Name :	Mr.Panikar C. V. R.
Designation :	Director
Name :	Mr. Pinnamaneni Koteswara Rao
Designation :	Director
Name :	Mr. G. S. Raju
Designation :	Director
Name :	Mr. P. R. Ramakrishnan
Designation :	Director
Name :	Mr. D. S. Reddy
Designation :	Director
Name :	Mr. Swaminatha O. Reddy
Designation :	Director
Name :	Mr. A Ramakrishna
Designation :	Director
Name :	Mr. V Gandhi
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Sridhar K.
Designation :	Company Secretary & Chief Financial Officer

MAJOR SHAREHOLDERS

Category	No. of Shares	% of Shares
Clearing Member	49906	0.3871
Foreign Bank	50	0.0004
Foreign Institutional	7578	0.0588
Indian Financial Institutions	546415	4.2384
Indian Promoters	5963824	46.2595
Mutual Funds and UTI	1550	0.0120
NRIs/OCB	167571	1.2998
Private Corporate Bodies	565918	4.3897
Indian Public	5585473	43.3247
Trusts	3831	0.0297
TOTAL	12892116	100.0000

BUSINESS DETAILS

Line of Business :	Manufacturing of cement, cement machinery, sugar machinery, etc.
Exports to :	Kenya, Mauritius, Rwanda, Sri Lanka and Vietnam
Imports from :	Germany and USA

PRODUCTION STATUS

Class of Goods	Unit	Licenced Capacity	Installed Capacity	Actual Production
Hydel Power	MWH	8.25	8.25	33183700
Wind Power	MWH	2.70	2.70	3638169
Cement	TPA	--	500000	531504

GENERAL INFORMATION

No. of Employees :

706

Bankers :

Canara Bank

State Bank of India, Chennai – 600 001, Tamilnadu

Standard Chartered Bank

Punjab National Bank, 17, Rajaji Road, Chennai – 600 001, Tamilnadu

South Indian Bank

Facilities :

[figures are in Rupees Millions]

Facility	As on 31.03.2006
Secured loans
Short Term Loans :
Working capital facilities from bank against paripassu first charge on current assets at Cement Unit and a second charge paripassu on the fixed assets of the Cement and Engineering Units	100.000
From a bank against paripassu first charge on the entire fixed assets of the company	100.000
From a company on the security of some of the shares held as investments	11.500
Long Term Loans :
From a bank secured by paripassu frist charge with other term lenders, by hypothecation of all the fixed assets, of the company, present and future	128.215
From a bank against security of specific assets	1.900

Banking Relations :	Satisfactory
Auditors :	Brahmayya & Company Chartered Accountants, Vijayawada, Andhra Pradesh Cost Auditors : Parankusam & Company Chartered Accountants
Subsidiaries :	KCP Vietnam Industries Limited 22, Nguyen Thi Minh Khai Street, Cung Son Town, Son Hoa District, Phuyen Province, Vietnam Tel. No. 91-8457-861613 Fax No. 91-8457-861616 E Mail : kcpsonhoa@dng.vnn.vn TRANSACTION CELL : Ramakrishna Buildings, 2, Dr. P. V. Cherian Crescent, Egmore, Chennai – 600 008, Tamilnadu Tel. No. 91-44-8279533 / 8187 / 1899 / 0687 Fax No. 91-44-8275762 KECEPE Investment Private Limited KCP Bio Tech Limited Fives Cail KCP Limited KCP Technologies Limited V. Ramakrishna Sons Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs. 10/- each	Rs. 500.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
12897748	Equity Shares	Rs. 10/- each	Rs. 128.977 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12892116	Equity Shares	Rs. 10/- each	Rs. 128.921 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		128.921	128.921	128.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		962.511	861.047	808.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1091.432	989.968	937.300
LOAN FUNDS
1] Secured Loans		341.616	210.279	328.800
2] Unsecured Loans		265.520	259.889	227.700
TOTAL BORROWING		607.136	470.168	556.500
DEFERRED TAX LIABILITIES		74.528	76.790	0.000
TOTAL		1773.096	1536.926	1493.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		689.850	678.040	706.000
Capital work-in-progress		67.382	6.957	3.100
INVESTMENT		316.055	334.055	339.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	512.049	378.501	314.600
	Sundry Debtors	140.578	153.389	136.800
	Cash & Bank Balances	170.655	64.001	62.300
	Other Current Assets	7.454	5.344	0.000
	Loans & Advances	559.672	462.847	457.900
Total Current Assets		1390.408	1064.082	971.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	468.973	437.801	492.300
	Provisions	221.626	108.407	34.400
Total Current Liabilities		690.599	546.208	526.700
Net Current Assets		699.809	517.874	444.900
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1773.096	1536.926	1493.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	2068.047	1686.338	1453.300
Profit/(Loss) Before Tax	248.510	146.191	13.500
Provision for Taxation	73.546	49.439	1.800
Profit/(Loss) After Tax	174.964	96.752	11.700
Export Value	34.447	107.845	207.226
Import Value	22.715	6.411	NA
Total Expenditure	1819.537	1540.147	1439.700

QUARTERLY RESULTS

PARTICULARS	30.06.2006 [1^st Qtr.]	30.09.2006 [2^nd Qtr.]	31.12.2006 [3^rd Qtr.]
Sales Turnover	524.800	582.100	585.400
Other Income	21.100	12.400	9.100
Total Income	545.900	594.500	594.500
Total Expenditure	377.300	383.400	364.400
Operating Profit	168.600	211.100	230.100
Interest	11.100	10.900	10.400
Gross Profit	157.500	200.200	219.700
Depreciation	14.200	14.000	16.500
Tax	44.700	57.300	38.800
Reported PAT	101.600	99.900	131.800

Notes

200606 Quarter 1

EPS is Basic 1. The above results was taken on record at the Board meeting held on July 24, 2006. 2. Pursuant to the change in the company's scheme for contribution to its employee's superannuation, in line with the revised Accounting Standard 15 Employee Benefits the additional liability of Rs. 40.900 millions has been charged to revenue in the above accounts. 3. There are no investor complaints pending at the beginning of the quarter and no complaints received for the quarter ended 30.06.2006 and no investor complaint pending at the end of the quarter.

200609 Quarter 2

EPS is Basic and Diluted 1. The above statement was taken on record at the Board Meeting held on 25^th October,2006. 2. Status of investor grievances for the quarter ended 30.09.2005. No. of Complaints from investors pending as on 01.07.2006 - Nil No. of Complaints from investors received during the quarter - Nil No. of Complaints from investors addressed during the quarter - Nil No. of Complaints from investors pending as on 30.09.2006 - Nil

200612 Quarter 3

EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil The above statement was taken on record at the Board Meeting held on January 24, 2007.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.52	0.53	0.61
Long Term Debt Equity Ratio	0.52	0.53	0.61
Current Ratio	1.76	1.77	1.81
TURNOVER RATIOS
Fixed Assets	1.15	0.97	0.85
Inventory	4.43	4.73	4.41
Debtors	13.43	11.29	10.74
Interest Cover Ratio	6.60	3.99	1.23
Operating Profit Margin (%)	17.47	14.92	9.80
Profit Before Interest and Tax Margin (%)	14.84	11.90	5.09
Cash Profit Margin (%)	11.50	8.92	5.55
Adjusted Net Profit Margin (%)	8.87	5.91	0.83
Return on Capital Employed (%)	18.55	13.21	4.76
Return on Net Worth (%)	16.82	10.05	1.25

STOCK PRICES

Face Value	Rs.10/-
High	Rs.280.00/-
Low	Rs.280.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 3^rd July, 1941 at Chennai in Tamilnadu having Company Registration Number 1128.

The KCP group of Companies had its beginning in the year 1941. It started with a single co-operative sugar factory in the state of Andhra Pradesh.

Since then The KCP Group has diversified into cement and heavy engineering. The KCP cement division went operational in 1958 and was India's first dry process kiln.

The KCP heavy engineering division was established in 1955 as a sprawling high technology complex in the suburb of Chennai.

KCP cement division has a state-of-the-art cement manufacturing plant at Macherla, Andhra Pradesh. India's first dry process kiln was installed here in 1958 by HUMBOLDT, Germany. In 1962, subject installed a second wet process kiln in collaboration with FIVES LILLIE CAIL, France.

A multi-product company with two sugar mills, a downstream distillery, a cement plant and an engineering division, the company was initially a sick sugar unit (cap. : 600 tpd). It was taken over by the late Velagapudi Ramakrishna in 1941. The merger of Challapalli Sugars - a BIFR company - with it in 1988 and expansions have increased its sugar capacity tenfold to 6300 tpd over the last five decades. 

The cement factory, set up in 1958, was the first dry process plant in India. The engineering division was set up in 1955 as an in-house venture to manufacture sugar machinery required by the company. Manufacture of machinery required for cement, chemicals, steel castings, etc, were later added to this division. Both the cement and engineering divisions have been accredited with the ISO 9002 and ISO 9001 certification respectively in 1994. 

The company hived off its sugar and industrial alcohol business, which was transferred to a new company, KCP Sugar Industries Corporation. The Company also undertook a joint venture with Vantech Industries for the manufacture of specialised insecticides. KCP promoted FCB-KCP, a joint venture with FCB, France, in a 40:40 equity participation. The new company is to manufacture and supply state-of-the-art machinery and technology to clients in the sugar industry both in India and abroad. 

The cement unit of the company continues to retain the ISO 9001 certification while the engineering unit was accredited to use the symbol 'S' and 'U' of the American Society of Mechanical Engineers (ASME) for the manufacture and assembly of power boilers and pressure vessels, respectively on 15 May' 1996. The company has also received the Certificate of Merit for outstanding export performance during 1994-95 among Non-SSI exporters in industrial machinery panel for manufacture of sugar, paper, chemical, cement and pharmaceuticals. 

The company had set up 5 mini-hydel units aggreagting 8.25 MW capacity in the Guntur branch canal of the Nagarjuna Sagar Dam. Electricity generated in this unit is wheeled to the cement unit for use. During 2001-02 the company entered into an agreement with Andhra Pradesh Transmission Corporation Limited (APTRANSCO) for wheeling the generated energy at Hydel stations to the cement plant with a wheeling charge of 2% fixed for a period of 20 years.

BUSINESS:

The company is engaged in manufacturing of cement, cement machinery, sugar machinery, etc.

It is also engaged in designing, manufacturing, erection and commissioning critical equipment for sugar, metallurgical, mineral processing, chemical industries, tidal power installations, etc.

Generic Names of the Principal Products of the company are :

Ø Cement

Ø Cement Machinery

Ø Sugar Machinery

CEMENT

Overview 

The Company operates a plant of 500000 tones annual capacity at Macherla in Guntur District of Andhra Pradesh. During the year under report, the Company marketed cement in Andhra Pradesh, Pondicherry and parts of Tamil Nadu & Karnataka. The Company's prospects were in tune with the realization in Andhra Pradesh since 90% of the production was marketed in Andhra Pradesh. 

State of the Industry 

The entire country is witnessing increase in Demand. Demand outstripped supplies in the entire country, as also in Andhra Pradesh, in the last quarter of this year. The Company's production capacity is 4% of the total production capacity available in the State. Severe competition and unremunerative prices had impacted in the first three quarters. However, prices firmed up in the last quarter as mentioned above. 

Increase in transport costs due to oil price increase and consequent increase in input costs, have had adverse impact on the segment result. 

Outlook 

The Company produced 50% Portland Cement and 50% Blended Cement during the year. The Company proposes to produce predominantly Portland Cement in the ensuing year. 

Demand for Cement increased substantially during the fourth quarter of the year and thereafter. Hence prices are expected to firm up and rule at higher levels as compared to previous year all through the Country. 

The Company was able to procure required coal domestically thereby avoiding incurring heavy costs on import of coal. 

The Company is in the final stages of installing a waste heat recovery system, at a cost of Rs. 115 millions, which is expected to generate 2MW electricity. In furtherance of clean environment, a clinker silo is being built at a cost of Rs. 100 millions, which is also in the final stages of completion. These facilities are expected to be operational in the second / third quarter of fiscal year 2006-2007. 

POWER

Overview 

The Company has five mini-hydel units aggregating to 8.25 MW capacity on the Guntur Branch Canal of the Nagarjuna Sagar Dam. This being an irrigation canal, water is expected to be available for seven to eight months of the year. Electricity generated in these units is wheeled to the Company's cement unit for use. Generation in excess of the consumption at the cement unit is banked on a monthly basis and is to be used within twelve months of generation. Electricity unused even after twelve months is sold to the Grid. Electricity used in the cement factory will be deducted from the monthly bills and will get a relief at the H.T rates, while electricity sold to grid will be paid for at the prevalent purchase price as determined by APERC. 

In addition to the Hydel Unit, the 12 wind turbines of 225 KW each, taken on operating lease, newly set up last year by Indusind bank, and maintained by Alfin Wind Energy Limited, which is located at Thandayarkulam Village, Radhapuram Taluk, Tirunelveli District of Tamil Nadu is producing adequate units as envisaged. The Company has entered into agreement with Tamil Nadu Electricity Board, as operating lessee, to wheel the energy generated to the Company's Engineering Unit located in Tiruvottiyur. Power remaining unused as at 31st March of each year is sold to TNEB at the prevalent purchase price.

Concerns 

The following matters taken to Court by the Company are still pending in appropriate Courts: 

a) Increase in wheeling charge - challenged by the Company, in AP High Court. The Court quashed the order. APTRANSCO went on appeal to Supreme Court, which is pending. 

b) Increase in water cess - challenged by the Company and is pending in AP High Court. 

c) Government levied a duty on electricity generated, which was also contested by the Company and is pending in AP High Court. APERC has, for the current year fixed wheeling charge of 6% and cash compensation of 84.25 paise per KW per month. The Company has contested this hike also in the AP High Court, which is pending. 

Outlook 

Prospects of this unit are dependent on copious monsoon resulting in abundant water flow to Nagarjuna Sagar Dam. Electricity reform measures are expected to tone down the concessions available to all developers including mini-hydel units. This will reduce the expected benefit out of captive generation of Hydel Power. 

ENGINEERING

The Company operates a versatile engineering facility that is capable of manufacturing heavy mechanical equipment to a given design for various industries. The workshop has foundry, heavy fabrication and machine shop facilities, integrated within the plant location. Arakonam facility was effectively used to augment production of foundry products. 

Due to all round growth in the Cement, Sugar and Infrastructure sectors, the operation of the Engineering Unit at Tiruvottiyur was substantially better than the previous year in terms of turnover and profits. 

Overview 

Status of capital goods sector 

During the year capital goods industry has maintained momentum and is doing well on both domestic and export market. 

Outlook 

With the orders on hand of about Rs. 1000 millions and the existing product-mix, performance during fiscal 2006-2007 is expected to yield similar results as that of the year under report. The modernization programme being implemented at a cost of Rs. 200 millions will enable the Company to increase productivity and to compete in higher value added segment. 

CORPORATE INVESTMENTS 

Performance 

Fives Cail K.C.P. Limited 

Operations during the year ended 31.03.2006 were better than the previous year. New domestic orders fructified on revival of sugar industry. The Company returned profits in the current year and was able to wipe out accumulated losses. Outlook for the ensuing year is optimistic. The Company has declared a dividend of 50% for the year ended 31.03.2006. 

Sudalagunta Sugars Limited

Their Investment in Sudalagunta Sugars Limited has come down below 20% and hence the financial results are not discussed here. 

K.C.P. Biotech Limited 

During the year under report, paprica (chilli) colour extract was exported to USA; Europe, South Africa and Japan. Quality of the products has been acceptable to the international buyers. Natural colour market demand being vast, growth potential offered by this business is impressive. 

However, production process is under stabilization and the Company is focusing to get quality manpower to improve the efficiency of the Plant. Efforts are on to improve yields, which is essential to make this business segment profitable. 

For the year under report this unit posted a loss of Rs. 27.900 millions. 

Diminution in value of investments 

As per the audited accounts of KCP Biotech Limited, the company has incurred cash losses during the year, and is more than 50% of its net worth. The Directors are of the opinion- that since this being the first full year of operations, and the production process is being stabilized, there need not be any adjustment towards diminutions of investment in the books of 'The KCP Limited”.

KCP Vietnam Industries Limited 

KCP Vietnam Industries Limited concluded the season with a crush of 303321 tones and a recovery of 9.64%. Realization in 2005 was higher than that of the previous year. For the year ended 31-12-2005, the Company earned a profit of Rs. 85.300 millions. Accumulated losses have been brought down to Rs. 42.000 millions. Dong Xuan Factory crushed 7432 tones of cane and the syrup was taken into production process at the Phu Yen factory. 

KECEPE Investments (Pte) Limited 

The process of winding up of the investment Company, (KECEPE Investments (Pte) Limited) in Singapore, through which investment was made in the Vietnam Subsidiary has been completed. 

The company has collaboration with FCB, France.

Subject has been accredited with ISO 9002 Certification.

MEMBERSHIPS

Ø Confederation of Indian Industry

As per Website Details:

KCP is a diversified 50 million US$ business group with interests in Heavy Engineering, Sugar, Cement, Hydel Power, Information Technology and Biotechnology.

2002	KCP Biotech Limited setup at Biotech Park, Shameerpet, Hyderabad to manufacture biotech related products.
2001	KCP Heavy Engineering Plant II setup at Arakonam near Chennai, to execute medium to large sized fabrication projects.
1999	KCP Hydel Power Division setup at Nekkarikallu, Andhra Pradesh on the Guntur Canal of Krishna river to generate 8 MW of power.
1999	KCP Vietnam Industries Limited, a fully owned subsidiary of the KCP Limited setup to manufacture sugar at Thua Thien Hue Province at Central Vietnam. This 2500 TCD plant was shifted to Son Hoa District, Phuyen Province in 2001.
1999	KCP Technologies Limited setup to provide high quality IT Solutions & Engineering Technical Services.
1995	FCB-KCP Limited, (now Fives Cail-KCP) setup as a joint venture with Fives Cail Group of France for the design and manufacture of Sugar Plants.
1995	KCP Sugar Manufacturing Division demerger into a separate company, KCP Sugar & Industries Limited.
1984	Arakonam Castings & Forgings Limited, started as a joint venture between The KCP Limited and the Tamilnadu Industrial Development Corporation (TIDCO).
1984	Fuller KCP Limited, a joint venture with Fuller International Inc, USA was launched, for the design and manufacture of large-sized cement plants and other mineral processing equipment. KCP divested its stake to FL Smidth, Denmark in 1996.
1967	EIMCO-KCP Limited, started as a joint venture between The KCP Limited and EIMCO Corporatation, USA. Currently a 100% subsidiary of KCP Sugar & Industries Limited.
1958	KCP Cement Division, setup at Macherla, Andhra Pradesh with a state-of-the-art cement manufacturing plant. India's first dry process kiln was installed at Macherla by HUMBOLDT AG, Germany in 1958 (while still a prototype in Europe).
1955	KCP Heavy Engineering Division Plant I, setup at Tiruvottiyur, Chennai consisting of an integrated manufacturing facility, which caters to a wide range of heavy mechanical equipment and sub-systems for core sector industries.
1941	An 800 TCD Sugar Plant was setup at Vuyyuru, Andhra Pradesh, India by Sri. V. Ramakrishna, Founder Chairman of KCP.

KCP Heavy Engineering

KCP Heavy Engineering Division setup in 1955 is an integrated manufacturing facility that caters to a wide range of heavy mechanical equipment and sub-systems for the core sector industries.

KCP Heavy Engineering has significantly contributed to the development of core sector infrastructure in India, Srilanka, Bangladesh and Vietnam. The company has made a pioneering contribution in the modernising & expansion of the Cement and Sugar industries in India by providing high quality import substitution equipment.

This facility is one of the largest, well-integrated workshops of its kind and has facilities for casting, fabrication and machining heavy equipment. This integrated manufacturing facility is located proximal to Chennai Sea Port as well as the Airport.

Quality Certifications

ISO 9001-2001 QS certified by Lloyd's Register Quality Company (LRQA), COFRAC, ANSI-RAB since 1994.

ASME authorization of the Manufacture & Assembly of Power Boilers & Pressure Vessels (this enables us to use the 'U' & 'S' stamps for Pressure Vessels & Boilers respectively)

National Board Registration for manufacture and supply of pressure Vessels.

Certification from Engineers India Limited, New Delhi for manufacture and supply of Pressure Vessels & Columns in Carbon Steel & Stainless Steel.

Their foundry enjoys the "WELL KNOWN FOUNDRY STATUS" conferred by Indian Boilers Regulations Board, Apex Authority in Boilers Engineering & Certification in India.

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 records 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 records 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. 44.11
UK Pound	1	Rs. 86.58
Euro	1	Rs. 57.04

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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