MIRA INFORM REPORT

Report Date :

27.06.2011

IDENTIFICATION DETAILS

Name :	KEC INDUSTRIES LIMITED KAMAL ENGINEERING CORPORATION DIVISION OF KEC INDUSTRIES LIMITED
Registered Office :	56, Industrial Estate, Yamuna Nagar-135001, Haryana
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.11.1983
Com. Reg. No.:	05-016894
Capital Investment / Paid-up Capital :	Rs. 28.500 millions
CIN No.: [Company Identification No.]	U74999HR1983PLC016894
IEC No.:	0588143642
PAN No.:	AAACK4706E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer, Trader, Exporter and Importer of Specialty Heat Recovery and Distillation Equipment.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 1700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Vikram Pratap Gaddh
Designation :	Director
Contact No.:	91-11-23351365
Date :	23.06.2011

LOCATIONS

Registered Office :	56, Industrial Estate, Yamuna Nagar-135001, Haryana, India
Tel. No.:	91-173-2250300
E-Mail :	kamal@kecindustries.com vikram@kecindutries.com ramkumar_associates@yahoo.co.in
Website :	www.kecindutries.com
Area :	22822.47 sq. ft.
Location :	Owned
Factory 1 :	Plot No. 57, Industrial Estate, Yamuna Nagar-135001, Haryana, India
Area :	23367.24.25 sq. ft.
Factory 2 :	Plot No. 58, Industrial Estate, Yamuna Nagar-135001, Haryana, India
Area :	19892.25 sq. ft.
Branches :	616, Antriksh Bhawan, 22, Kasturba Gandhi Marg, New Delhi-110001, Delhi, India
Tel. No.:	91-11-23351365 / 23723158
Fax No.:	91-11-23721656 / 23721657
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Rajinder Mohan Gaddh
Designation :	Managing Director
Address :	507,Silver Arch Apartments, 22, Feroze Shah Road, New Delhi-110001, Delhi, India
Date of Birth/Age :	01.05.1950
Date of Appointment :	03.11.1983
DIN No :	00254167
Name :	Mr. Anil Kumar Gaddh
Designation :	Whole Time Director
Address :	526-R, Model Town, Yamuna Nagar-135001, Haryana, India
Date of Birth/Age :	02.05.1962
Date of Appointment :	03.03.1984
DIN No :	00254100
Name :	Mr. Darshan Lal Gaddh
Designation :	Whole Time Director
Address :	81, Model Colony, Yamuna Nagar-135001, Haryana, India
Date of Birth/Age :	02.03.1935
Date of Appointment :	03.11.1983
DIN No :	00254217

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Rajindra Mohan Gaddh	596500
Darshan Lal Gaddh	27900
Anil Kumar Gaddh	219050
Saroj Bala Gaddh	148800
Sudershan Kumari Gaddh	164100
Kamna Kumar Gaddh	286800
Suresh Chander Setiya	21200
Pravin Setiya	6600
Kunal Setiya	10200
Karan Setiya	6000
Subhash Sawhney	6800
BMW Holings Private Limited, India	980000
Signature Towers Private Limited, India	166200
D. P. S. E. Finance Limited, India	35750
RSJ Credit and Capital Private Limited, India	12150
Surya Textiles Mills Limited, India	7150
DFCL Credits Limited, India	45500
Kesar Credit and Capital Limited, India	7150
Surakshit Portfolio Private Limited, India	17150
Varindra Hosiery Industries Limited, India	5000
Laxmi Infin Private Limited, India	10000
Dev Aashish Capitals Private Limited, India	10000
Ramsons Travels Limited, India	10000
Ramsons Proteins Limited, India	10000
Chanakya Finvest Private Limited, India	10000
Baba Nanak Financial Services Limited, India	10000
Fine Finance Leasing Private Limited, India	10000
Divya Secfin Private Limited, India	10000
Total	2850000

AS ON 30.09.2010

Category	Percentage
Bodies corporate	47.58
Directors or relatives of Directors	50.64
Other top fifty shareholders	1.78
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader, Exporter and Importer of Specialty Heat Recovery and Distillation Equipment.

Products :

ITC CODE	PRODUCTS
841989.01	Heat Exchange Unit
841989.01	Trays for Columns
--	Dampers

Exports :

Products :

· Heat Recovery and Distillation Equipment.

Countries :

· All over the world

Imports :

Products :

· Raw Material

Countries :

· All over the world

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

GENERAL INFORMATION

Customers :

· End Users

· Others

· Daelim Engineering - South Korea

· ITT Kirchner – Italia

· Maritime Industrial Services – Sharjah

· Heurtey Petrochem – France

· Thanlyin Refinery - Angelique International

· Pkn Orlen / Plock Poland - Kti Poland Sa

· Oao Lukoil - Kstovo Refinery – Russia

· Bang Chak Refinery – Thailand

· E-Lab – Egypt

· Hyundai Oil Bank, Korea

· ISO Octane, Dubai

· JVC (Pertamina SK) – Indonesia

· Bharat Petroleum Corporation Limited

· Bongaigaon Refineries and Petrochemicals Limited

· Hindustan Petroleum Corporation Limited

· Indian Oil Corporation Limited

· Chennai Petroleum Corporation Limited

· Mangalore Refineries and Petrochemicals Limited

· Gujarat State Fertilizers Company Limited

No. of Employees :

250 (Approximately)

Bankers :

· State Bank of India, Main Branch, Jagadhri Road, Yamuna Nagar-135001, Haryana, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
MANUFCTURING UNIT
State Bank of India, Yamuna Nagar:
From company’s bankers secured against assets as started below besides personal guarantee of the directors:
Against hypothecation of stocks of raw material, finished goods, semi finished goods and stores	3.113	4.663
Against Book Debts	0.000	4.857
Car Loans	2.014	3.517
TAMIL NADU WIND MILL UNIT
IREDA, New Delhi
Term Loan Against Wind Mill	11.109	17.457
MAHARASHTRA WIND MILL UNIT
IREDA, New Delhi
Term Loan Against Wind Mill	26.271	37.103
Total	42.507	67.597
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors and Shareholders	1.157	1.207
Total	1.157	1.207

Banking Relations :	--
Auditors :
Name :	Moudgil and Company Chartered Accountant
Address :	Khera Bazar, Jagadhri, Haryana-135003, India
Subsidiaries :	Mohan Apartments Private Limited CIN No.: U45400DL2008PTC183466

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs. 75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2850000	Equity Shares	Rs.10/- each	Rs. 28.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		28.500	28.500
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		406.369	349.518
4] (Accumulated Losses)		0.000	0.000
NETWORTH		434.869	378.018
LOAN FUNDS
1] Secured Loans		42.507	67.597
2] Unsecured Loans		1.157	1.026
TOTAL BORROWING		43.664	68.622
DEFERRED TAX LIABILITIES		23.639	14.753
TOTAL		502.172	461.393
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		96.379	104.944
Capital work-in-progress		0.000	0.000
INVESTMENT		317.056	266.911
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.838	26.883
	Sundry Debtors	84.023	42.423
	Cash & Bank Balances	24.512	24.054
	Other Current Assets	0.000	0.000
	Loans & Advances	56.925	66.863
Total Current Assets		185.298	160.223
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.480	29.713
	Other Current Liabilities	29.556	18.318
	Provisions	30.525	22.833
Total Current Liabilities		96.561	70.864
Net Current Assets		88.737	89.359
MISCELLANEOUS EXPENSES		0.000	0.180
TOTAL		502.172	461.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Sales and Revenue Receipts	404.337	404.073
		Sales of Wind Power	20.324	14.660
		Other Income	7.156	7.505
		TOTAL (A)	431.817	426.238
Less	EXPENSES
		Consumption of Materials	185.901	201.015
		Increase / (Decrease) in Stock	5.422	(4.209)
		Manufacturing Expenses	95.829	105.121
		Administrative and Selling Expenses	25.976	23.266
		Preliminary Expenses W/Off	0.180	0.182
		TOTAL (B)	313.308	325.375
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		118.509	100.863
Less	FINANCIAL EXPENSES (D)		6.692	9.168
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		111.817	91.695
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.045	20.570
Add / less	Profit / (Loss) on Sale of Fixed Assets / Investments		4.266	(5.726)
	PROFIT BEFORE TAX (E-F) (G)		99.038	65.399
Less	TAX (I)		42.187	3.362
	PROFIT AFTER TAX (G-I) (J)		56.851	62.037
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.518	43.481
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	50.000
	BALANCE CARRIED TO THE B/S		62.369	55.518

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	13.17	14.55
Net Profit Margin (PBT/Sales)	(%)	23.32	15.62
Return on Total Assets (PBT/Total Assets}	(%)	35.16	24.66
Return on Investment (ROI) (PBT/Networth)		0.23	0.17
Debt Equity Ratio (Total Liability/Networth)		0.38	0.41
Current Ratio (Current Asset/Current Liability)		1.92	2.26

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U74999HR1983PLC016894
Name of the company	KEC INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	56 Industrial Estate, Yamuna Nagar, Haryana- 135001, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Floating charge
Particular of charge holder	State Bank of India, Main Branch, Jagadhri Road, Yamuna Nagar, Haryana-135001, India
Nature of instrument creating charge	Agreement for modification in the existing credit facilities from 132.500 millions to 177.500 millions vide agreement dated 22.03.2010.
Date of instrument Creating the charge	22.03.2010
Amount secured by the charge	Rs. 177.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest shall be charged as applicable to SBAR present effective rate being 11.75% p.a. Terms of repayment As per the loan Agreement dated 22.03.2010 executed between SBI and the Company. Margin Raw Material 25% Stocks in Process 25% Finished Goods 25% Receivables 50% LC/BG 10% Extent and operation of the charge Extent of operation 100%
Short particulars of the property charged (Including location of the property)	Plot No.56, Industrial Estate, Yamuna Nagar, Measures 2535.83 Sq. Yards vide Conveyance deed No.3436/1 dated 22.03.1976 Plot No.57, Industrial Estate, Yamuna Nagar, Measures 2596.36 Sq. Yards vide Conveyance deed No.4379/1 dated 28.10.1986 Plot No.58, Industrial Estate, Yamuna Nagar, Measures 2210.25 Sq. yards vide Conveyance deed No.4722 dated 02.12.1987
Charge identification number of the charge to be modified	80033225
Date of instrument modifying the charge	21.01.2009
Particulars of the present modification	Enhancement of Credit Facilities From 132.500 millions To 177.500 millions Vide Agreement Dated 22.03.2010 CC (Hypothecation) : 17.500 millions CC (Book Debts) :(12.500) millions (Within CC Hypothecation) EPC/PCFC :(8.000) millions (Within CC Hypothecation) Bank Guarantee : 140.000 millions (Enhanced From 100.000 millions to 140.000 millions) Letter of Credit : 20.000 millions *With 100% OF Limit From LC to BG (One Way)

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Tools and Dies

· Type Writers

· Furniture and Fixtures

· Telephone Installation

· Office Equipments

· Electrical Installation

· Cars

· Motor Cycles

· Cycles

· Air Conditioners

· Water Coolers and Softeners

· Computers

· Laboratory Equipments

· Pumping Set and Lawn Mover

WEB SITE DETAILS

PROFILE

Established in 1973, Kamal Engineering Corporation (KEC), an ISO 9001 company, is one of the industry leaders in designing and manufacturing Specialty Heat Recovery and Distillation Equipment and is on the approved list of all major Indian Consultants and many foreign consultants. KEC products include Heat and Mass Transfer equipment to increase the efficiency / fractionation section of the process plant and are supplied to petroleum refineries, petrochemical, fertilizer and chemical plants.

KEC’s foundation is built upon Customer satisfaction by delivering high quality products and services. Matchless quality and a long list of satisfied customers stand testimony to their commitment. KEC boosts a quality controlled and fully equipped fabrication unit and a completely automated foundry plant located at Yamuna Nagar in the state of Haryana, India, about 125 miles north west of New Delhi.

The equipments supplied by KEC is not a stand alone or basic process plant and so there is scope for the equipment to be fitted into plants supplied by any manufacturer.

KEC specializes in the design and manufacture of following equipments:

• Combustion Air Pre heaters (Cast and Glass)

• Steam Air Heaters

• Column Tray and Internals

• Dampers

• Sugar Equipments

• Portable / Fixed Type Igniters and Pilot Burners

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.44.94
UK Pound	1	Rs.71.89
Euro	1	Rs.64.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.