MIRA INFORM REPORT

Report Date :

29.06.2011

IDENTIFICATION DETAILS

Name :	KAFF APPLIANCES (INDIA) PRIVATE LIMITED
Registered Office :	14/25, DDA Complex, Nangal Rai, New Delhi – 110025
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.10.2007
Com. Reg. No.:	55-169229
Capital Investment / Paid-up Capital :	Rs.7.000 Millions
CIN No.: [Company Identification No.]	U28910DL2007PTC169229
Legal Form :	Private Limited Liability Company
Line of Business :	Imports, purchase, sale, repairs and installations of all kinds of electrical and non electrical home appliances.
No. of Employees :	Not Available.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 75000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has been successful in wipping off the accumulated losses of the previous year. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings 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 – 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

LOCATIONS

Registered Office :	14/25, DDA Complex, Nangal Rai, New Delhi – 110025, India
E-Mail :	dca1991@yahoo.co.in dca1995@yahoo.com nanikainter@satyam.net.in
Branch Office :	No.229, Royal Park, K H Road, Ayanavaram, Chennai – 600023, India

DIRECTORS

(AS ON 09.08.2010)

Name :	Mr. Kamlesh Anand
Designation :	Director
Address :	C-67, Old DLF Colony, Gurgaon – 122001, Haryana, India
Date of Appointment :	10.10.2007
Name :	Mr. Deepak Anand
Designation :	Director
Address :	C-67, Old DLF Colony, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	17.10.1963
Date of Appointment :	10.10.2007
Name :	Mr. Malvika Anand
Designation :	Director
Address :	C-67, Old DLF Colony, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	03.09.1970
Date of Appointment :	14.09.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2010)

Names of Allottee	No. of Shares Allotted
Deepak Anand	499000
Kamlesh Anand	1000
Raj K Mercantile Corporation Limited, India	30000
Vidhan Infrastructures Private Limited, India	54000
Shri Ram Tradecom Private Limited, India	56000
WBT India Private Limited, India	30000
SPIL Financial Services Limited, India	30000
Total	700000

(AS ON 30.09.2010)

Category	Percentage
Bodies corporate	28.58
Directors or relatives of directors	71.42
Total	100.00

BUSINESS DETAILS

Line of Business :

Imports, purchase, sale, repairs and installations of all kinds of electrical and non electrical home appliances.

GENERAL INFORMATION

Suppliers :

· ACG Infotech Limited

· Adani Logistics Limited

· Ahuja Shuttering Stores

· Gateway Distriparks Limited

· Lalit Allagh and Associates

· Asian Trade International

· Yongkang Puneng Electric Company Limited

· Crescent Communications Private Limited

· Easa Elevators Private Limited

· Hellman Worlwide Logistics (India) Private Limited

· Jindal Mectec Private Limited

· K V computers

· Manisha services

· Kosmo Automobiles

Customers :

· Aarsh Wood Craft

· Aggarwal Agencies

· Bajrang Hardware and Paints

· Bloom Merchandise Private Limited

· D M International

· Encore Office Systems Private Limited

· Hind Enterprises

· Intex Enterprises

· Kitchen Kreation

· Maa Bhagwati Traders

· Magpie International Limited

· Omaxe Buildhome Private Limited

· SNP Traders Group (Private) Limited

· Singhla Enterprises

· The New Divya Enterprises

· Vertex Busienss House

No. of Employees :

Not Available.

Bankers :

· Kotak Mahindra Bank Limited

7th Floor, Ambadeep Building, Kasturba Gandhi Marg, New Delhi – 110001, India

· Citibank N.A

Jeevan Bharti Building, 4th Floor, 124, Connaught Circus, Connaught Place, New Delhi - 110001, India

· Punjab National Bank

· ICICI Bank

· Union Bank of India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Kotak Mahindra Prime Limited	0.262	0.313
Kotak Mahindra Prime Limited – Swift	0.308	--
Kotak Mahindra Prime Limited – Tata 407, Kolkata	0.340	--
Kotak Mahindra Prime Limited	0.194	--
Total	1.104	0.313
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Deepak Anand	59.180	62.680
Kamlesh Anand	0.040	0.040
Share Application Money	1.000	--
Malvika Anand	1.000	--
Nanika International (Chennai)	9.900	13.200
Nanika International (Gurgaon)	(8.319)	0.197
Nanika International (Mumbai)	0.007	0.327
Total	62.808	76.444

Banking Relations :	--
Auditors :
Name :	Deepak Chopra and Associates Chartered Accountant
Address :	137, DDA Site – 1, Shankar Road, New Rajinder Nagar, New Delhi – 110060, India
Tel No.:	91-11-28745780/ 81/ 82
Email :	dca1991@yahoo.co.in

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Share	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
700000	Equity Share	Rs.10/- each	Rs.7.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		7.000	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.829	0.000	0.000
4] (Accumulated Losses)		0.000	(1.281)	(1.290)
NETWORTH		18.829	(1.181)	(1.190)
LOAN FUNDS
1] Secured Loans		1.104	0.313	0.000
2] Unsecured Loans		62.808	76.444	1.287
TOTAL BORROWING		63.912	76.757	1.287
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		82.741	75.576	0.097
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.202	0.667	0.067
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.343	53.051	0.000
	Sundry Debtors	8.988	3.711	0.000
	Cash & Bank Balances	(0.032)	14.174	0.083
	Other Current Assets	11.048	5.001	0.000
	Loans & Advances	34.764	16.864	0.469
Total Current Assets		113.111	92.801	0.552
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	17.697	10.841	0.089
	Other Current Liabilities	3.552	3.337	0.000
	Provisions	11.461	3.809	0.559
Total Current Liabilities		32.710	17.987	0.648
Net Current Assets		80.401	74.814	(0.096)
MISCELLANEOUS EXPENSES		0.138	0.095	0.126
TOTAL		82.741	75.576	0.097

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		TOTAL	386.591	95.723
Less	EXPENSES
		TOTAL	379.551	95.707
	PROFIT BEFORE TAX		7.040	0.016
Less	TAX		1.779	0.000
	PROFIT AFTER TAX		5.261	0.016
	Earnings Per Share (Rs.)		5.69	1.56

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.36	0.02	NA
Return on Total Assets (PBT/Total Assets}	(%)	6.11	(0.02)	NA
Return on Investment (ROI) (PBT/Networth)		0.37	(0.01)	NA
Debt Equity Ratio (Total Liability/Networth)		5.13	(80.22)	(1.63)
Current Ratio (Current Asset/Current Liability)		3.46	5.16	0.85

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

Profit (Loss) during the year:-

The company has earned a Net Profit of Rs.5.261 Millions.

FORM 8:

Corporate identity number of the company	U28910DL2007PTC169229
Name of the company	KAFF APPLIANCES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	14/25, DDA Complex, Nangal Rai, New Delhi – 110025, India dca1995@yahoo.com
This form is for	Creation of charge
Type of charge	Book debts Stocks
Particular of charge holder	Citibank N.A Jeevan Bharti Building, 4th Floor, 124, Connaught Circus, Connaught Place, New Delhi – 110001, India roc@sdpa.in
Nature of instrument creating charge	Goods Security Agreement.
Date of instrument Creating the charge	25.10.2010
Amount secured by the charge	Rs.44.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: As per sanction terms and as may be decided by the bank and company mutually from time to time. Terms of Repayment: Repayable on demand, annually renewable. Margin: 30% against the said stocks. 30% against the said book debts. Extent and Operation of the charge: First exclusive charge by hypothecation of all the borrower's movable assets (including stocks and book debts) forming part of its current assets both present and future in favour of Citibank N.A Delhi for the repayment of all monies in respect of the credit facility, including outstanding balance and also all interest, costs, charges and expenses.
Particulars of the property charged	The whole of the Borrower's present and future stocks of raw material, goods in process of manufacture, semi finished goods. All of the Borrower's present and future book debts, outstanding monies, receivables, claims, bills, investments, securities.

FIXED ASSETS:

· Computers

· Car

· Digital Camera

· Furniture and Fixtures

· Inverter

· Laptop

· Mobile Phones

· Office Equipments

· Printer

· Weighing Machine

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.45.05
UK Pound	1	Rs.71.92
Euro	1	Rs.64.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	4
--CREDIT LINES	1~10	2
--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
TOTAL		28

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.