MIRA INFORM REPORT

Report Date :

22.11.2011

IDENTIFICATION DETAILS

Name :	KSE ELECTRICALS PRIVATE LIMITED
Registered Office :	33 A, Chowringhee Road, 7^th Floor, Block 9, Kolkata - 700 071, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.07.1996
Com. Reg. No.:	21-80466
Capital Investment / Paid-up Capital :	Rs.11.850 millions
CIN No.: [Company Identification No.]	U51505WB1996PTC080466
TAN No.: [Tax Deduction & Collection Account No.]	CALK03248A
PAN No.: [Permanent Account No.]	AABCK1911C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of complete range of Cable Terminals and Connectors
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 650000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealing 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	33 A, Chowringhee Road, 7^th Floor, Block 9, Kolkata - 700 071, West Bengal, India
Tel. No.:	91-33-22887600 / 01 / 02
Fax No.:	91-33-22887603 / 05
E-Mail :	kselugs@vsnl.com accounts@kse.in
Website :	www.kselugs.com
Manufacturing Units:	Terminal Works, 4/5 K.P. Singhee Road, Kolkata - 700 002, West Bengal, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Gautam Banka

Designation :

Director

Address :

4, HO, Chiminh Sarani, Kolkata – 700 071, West Bengal, India

Date of Birth/Age :

05.09.1978

Date of Appointment :

18.08.2000

DIN No.:

00800600

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51505WB1999PTC088679	KSE Exports Private Limited	Managing director	21-01-99	21-01-99	Active	NO
2	U51505WB1996PTC080466	KSE Electricals Private Limited	Director	18-08-00	18-08-00	Active	NO
3	U70101WB1986PTC040694	Lyons Properties Private Limited	Director	13-01-07	13-01-07	Active	NO

Name :

Mr. Siddharth Banka

Designation :

Director

Address :

4, HO, Chiminh Sarani, Kolkata – 700 071, West Bengal, India

Date of Birth/Age :

05.09.1978

Date of Appointment :

11.04.2007

DIN No.:

00800647

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31300WB1999PTC089592	UML Engineers Private Limited	Managing director	10-06-99	10-06-99	Active	NO
2	U51909WB1995PTC068997	Madhulika Dealcomm Private Limited	Director	27-02-07	27-02-07	Active	NO
3	U51505WB1996PTC080466	KSE Electricals Private Limited	Director	11-04-07	11-04-07	Active	NO

Name :

Mr. Anand Banka

Designation :

Director

Address :

4, HO, Chiminh Sarani, Kolkata – 700 071, West Bengal, India

Date of Birth/Age :

28.02.1983

Date of Appointment :

11.04.2007

DIN No.:

01314765

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51505WB1999PTC088679	KSE Exports Private Limited	Director	11-08-05	11-08-05	Active	NO
2	U51505WB1996PTC080466	KSE Electricals Private Limited	Director	11-04-07	11-04-07	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Kumkum Banka	215792
Gautam Banka	211450
Siddharth Banka	204400
Anand Banka	178550
Nicky Banka	132000
Namrata Banka	64000
Rashmi Banka	148000
Gautam Banka (HUF)	10308
Siddharth Banka (HUF)	20000
Satyawati Mahamia	100
Renu Kedia	100
Bhagawati Devi Tulsian	100
Amit Agarwal	100
Sabita Agarwal	100
Total	1185000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.96
Others	0.04
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of complete range of Cable Terminals and Connectors
Products :	· Cu. Lugs - Tubular · Cu. Connectors · Alum. Lugs  · Alum. Connectors · Bimetallic Lugs  · Cu. Soldering Lugs · Custom Made Terminals · Shear Head Terminals · Over Head Transmission Hardwares · Cu. and Alum. Busbars · Copper Terminals · Snap On Terminals
Product Description :	Electrical Engineering Goods

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Bank of Rajasthan Limited

Chowringhee Road Branch, 31, Chowringhee Road, Kolkata – 700 016, West Bengal, India

· State Bank of India

Overseas Branch, Samriddhi Bhavan, 1 Strand Road, Kolkata - 700 001, West Bengal, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Term Loan	23.107	5.741
Cash Credit Account	148.288	44.066
Bill Discount Account	9.868	14.645
Packing Credit Account	23.047	14.078
Total	204.310	78.530

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Body Corporate	65.072	62.124
From Shareholders	4.631	4.263
Total	69.703	66.387

Banking Relations :	-
Auditors :
Name :	R Tulsian and Company Chartered Accountants
Address :	7/1 C, Jatindra Mohan Avenue, Kolkata - 700 006, West Bengal, India
Tel. No.:	91-33-25431785 / 2270 / 2271
Fax No.:	91-33-25432270
E-Mail :	tulsian_tax@hotmail.com
PAN No.:	AAGFR4955B

CAPITAL STRUCTURE

As on 30.09.2011

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
1185000	Equity Shares	Rs.10/- each	Rs.11.850 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		11.850	11.850	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		149.640	124.431	76.634
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		161.490	136.281	86.634
LOAN FUNDS
1] Secured Loans		204.310	78.530	113.774
2] Unsecured Loans		69.703	66.387	53.959
TOTAL BORROWING		274.013	144.917	167.733
DEFERRED TAX LIABILITIES		7.331	0.000	0.000
TOTAL		442.834	281.198	254.367
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.428	56.849	40.988
Capital work-in-progress		63.330	0.000	0.000
INVESTMENT		2.556	2.519	5.771
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	179.851	100.081	82.400
	Sundry Debtors	273.144	132.907	199.765
	Cash & Bank Balances	12.992	0.180	0.269
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	89.595	49.408	66.913
Total Current Assets		555.582	282.576	349.347
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	210.694	52.585	135.065
	Other Current Liabilities	3.669	3.345	2.901
	Provisions	15.701	4.821	3.779
Total Current Liabilities		230.064	60.751	141.745
Net Current Assets		325.518	221.825	207.602
MISCELLANEOUS EXPENSES		0.002	0.005	0.006
TOTAL		442.834	281.198	254.367

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Net Sales	869.178	1073.944	849.300
		Other Income	12.831	2.936	0.214
		TOTAL (A)	882.009	1076.880	849.514
Less	EXPENSES
		Raw Material Consumed	910.771	533.990	552.104
		Trading Purchases		385.919	81.160
		Factory Expenses		62.571	78.956
		Employees Cost		4.411	4.497
		Administrative and Other Expenses		86.732	118.522
		Director’s Remuneration		6.210	0.910
		Variation in Stock	(99.990)	(40.275)	(13.072)
		TOTAL (B)	810.781	1039.558	823.077
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		71.228	37.322	26.437
Less	INTEREST (D)		19.713	16.364	11.671
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		51.515	20.958	14.766
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.276	2.711	1.915
	PROFIT BEFORE TAX (E-F) (G)		48.239	18.247	12.851
Less	TAX (H)		23.031	4.821	3.257
	PROFIT AFTER TAX (G-H) (I)		25.208	13.426	9.594
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.281	17.634	8.086
Less	ADJUSTMENTS
		Income Tax (Earlier Years)	0.000	0.025	0.046
		FBT (Earlier Years)	0.000	0.019	0.000
		VAT Receivable (2005-06)	0.000	0.735	0.000
	BALANCE CARRIED TO THE B/S		55.489	30.281	17.634
	EARNINGS IN FOREIGN CURRENCY		NA	387.831	NA
	Earnings Per Share (Rs.)		21.27	11.33	9.59

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.86	1.25	1.13
Net Profit Margin (PBT/Sales)	(%)	5.55	1.70	1.51
Return on Total Assets (PBT/Total Assets}	(%)	7.95	5.38	3.29
Return on Investment (ROI) (PBT/Networth)		0.30	0.13	0.15
Debt Equity Ratio (Total Liability/Networth)		3.12	1.51	3.57
Current Ratio (Current Asset/Current Liability)		2.41	4.65	2.46

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

Indian economy has been on the fulcrum of a rapid growth trajectory since 2005-06 which remained unfazed till the global recession that rocked economics across the world in 2008-09 and India could not remain unscratched despite all talks of decoupling theories by economists. Economies across the world were faced with dwindling consumption levels resulting into fall in demand, and exports miserably hit in the worst ever slowdown since the great depression. The Company is one of the independent manufacturers of “Electrical Engineering Goods” in Eastern India. Though faced with the odds of severe global recession during the year, the Company admirably reported Net Sales of Rs.869.170 Millions during the financial year ended March 31, 2010 as compared to Rs.1045.660 Millions during the previous financial year. Inspite of decline in turnover of the company profit of the Company have been increased from Rs.18.250 Millions to 48.240 Millions, registering an increase of around 164%.

OPERATION AND FUTURE OUTLOOK

The Company has managed to retain overseas market during the year. The Company is presently having work orders to the tune of Rs.350.000 millions from the overseas market and orders worth Rs.400.000 millions from the Domestic Market. The Directors are hopeful of multiplying the gross turnover of the company during the ensuing financial year.

Their performance during the year has been extremely good on the back of some strategic initiatives. They have expanded their presence in eastern India. The Company enjoys a rich heritage. They are focused on building on this platform by putting in place all the ingredients for a strong future.

FORM 8

Corporate identity number of the company	U51505WB1996PTC080466
Name of the company	KSE ELECTRICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	33 A, Chowringhee Road, 7^th Floor, Block 9, Kolkata - 700 071, West Bengal, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10197068
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge · Others o All other Current and Movable Fixed Assets
Particular of charge holder	State Bank of India Overseas Branch, Samriddhi Bhavan, 1 Strand Road, Kolkata - 700 001, West Bengal, India
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall Limit Supplemental Deed of Guarantee for Increase in the Overall Limit Letter Regarding the Grant of Individual Limits within the Overall Limit. Memorandum of Deposit for Creation of further charge for Term Loan/Overall Limit where the initial charge is created by way of Mortgage by deposit of Title Deeds of Borrower and Corporate Guarantor and Security Provider.
Date of instrument Creating the charge	08.09.2010
Amount secured by the charge	Rs.409.100 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest CC: 2% above SBAR, effective rate 13.75% p.a. at monthly rests. TL : 2.50% above SBAR, effective rate 14.25% p.a. at monthly rests. EPC/PCFC and FBD/EBR : As per SBI Exporters Gold Card Scheme. Terms of repayment Working Capital limit is repayable on Demand. The Term Loan of Rs.60.000 millions is repayable in 16 equal quarterly installments of Rs.3.750 millions commencing from June, 2010 and ending on March, 2014. Margin As stipulated by the Bank for the respective assets from time to time. Cash Credit: Stocks : 25%, Book Debts(cover period 90 days) : 40%, Letter of Credit : 10% and Bank Guarantee : 10%. Extent and operation of the charge The charge operates as first charge basis on the whole of the hypothecated current assets, movable fixed assets of the Company, both present and future and mortgaged properties of the Borrower and Corporate Guarantor/Security Provider to secure the maximum amount under the said charge fixed at Rs.409.100 millions together with interest, costs and charges thereon. Others The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreements. The overall limit is also secured by corporate guarantee of M/s. KSE Exports Private Limited. All other terms and conditions continue to remain as before in full force and effect.
Short particulars of the property charged	· Hypothecation of stocks, receivables and other current assets of the Company, both present and future. · Moveable fixed assets of the Company including plant and machinery, both present and future. · Land measuring 48.5 satak/decimal out of 2 acre 26 satak/decimal of Sali land situated at Mouza Sankharidaha, J.L. No.22, P.S. Domjur, District Howrah. · Land measuring 10 satak/decimals of Doba situated at Mouza Sankharidaha, J.L. No.22, P.S. Domjur, District Howrah. · Land measuring 18 satak/decimals of Sali land situated at Mouza Sankharidaha, J.L. No.22, P.S. Domjur, District Howrah. · Land measuring 19.5 satak/decimals of Sali land situated at Mouza Sankharidaha, J.L. No.22, P.S. Domjur, District Howrah. · Land measuring 20 satak/decimals of Sali land situated at Mouza Sankharidaha, J.L. No.22, P.S. Domjur, District Howrah. · Land measuring 20.5 satak/decimals of Sali Land situated at Mouza Sankharidaha, J.L. No.22, P.S. Domjur, District Howrah belonging to the Borrower. · Vacant Sali land measuring aggregating 3 bighas, 3 cottahs, 14 chittaks and 9 Sq. ft. situated at Jalan Industrial Complex in Mouza Janagalpur, PS Sankrail, Howrah under Conveyance Deed No. 2627, 2628 and 3133 belonging to M/s. KSE Exports Private Limited (Corporate Guarantor/Security Provider).
Particulars of the present modification	By this modification, the overall limit is enhanced from Rs.359.100 millions to Rs.409.100 millions as stated under and charge on hypothecated current assets, movable fixed assets and mortgaged properties extended to secure the enhanced overall limit. CC: Rs.190.000 millions EPC/PCFC: (Rs.40.000 millions) FBD/EBR: (Rs.50.000 millions) TL: Rs.60.000 millions BG:Rs.50.000 millions LC (within TL): (Rs.5.000 millions) LC (within BG): (Rs.20.000 millions) Forward Contract: Rs.9.100 millions Inland Bill/FBN under LC (OABF): Rs.100.000 millions Overall Limit : Rs.409.100 millions

FIXED ASSETS

· Plant and Machinery

· Dies and Moulds

· Stores Equipments

· Factory Development

· Stores Development

· Factory Furniture

· Stores Furniture

· Electrical Fitting – Factory

· Electrical Fitting – Stores

· Tools and Implement

· Office Equipments

· Software

· Computer

· Office Development

· Office Furniture

· Car

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.51.72
UK Pound	1	Rs.81.42
Euro	1	Rs.69.89

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.