MIRA INFORM REPORT

Report Date :

30.11.2011

IDENTIFICATION DETAILS

Name :	KAYNES TECHNOLOGY INDIA PRIVATE LIMITED
Registered Office :	23-25, Belagola, Food Industrial Estate, Metalgalli P O, Mysore – 570 016, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.03.2008
Com. Reg. No.:	08-45825
Capital Investment / Paid-up Capital :	Rs.10.000 millions
CIN No.: [Company Identification No.]	u29128ka2008ptc045825
TAN No.: [Tax Deduction & Collection Account No.]	BLRK08538F
PAN No.: [Permanent Account No.]	AADCK3295K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Electrical Components, Testing Equipments, etc.
No. of Employees :	750 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 660000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company is doing well. 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 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 – 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

INFORMATION PARTED BY

Name :	Mr. Ganeshan
Designation :	Account Manager
Contact No.:	91-821-4280259
Date :	29.11.2011

LOCATIONS

Registered Office / Factory 1 :	23-25, Belagola, Food Industrial Estate, Metalgalli P O, Mysore – 570 016, Karnataka, India
Tel. No.:	91-821-4280259 / 4280270 / 2582595
Fax No.:	91-821-2282701 / 2582595
E-Mail :	commercial@kaynestechnology.net ramesh-kannan@kaynestyechnology.net ganeshan.s@kaynestechnology.net artysharath@kaynestechnology.net
Website :	www.kaynestechnology.net
Area :	3 Acres
Location :	Owned
Factory 2 :	Plot No 4, Near Govt Middle Primary School, Sector 5, Parwanoo PO, Solan District – 173 220, Himachal Pradesh, India
Tel. No.:	91-1792-233045
Factory 3 :	Khasra Hope Town, Camp Road, Industrail Area, Selaqui PO, Vikas Nagar, Dehradun District Uttarkand - 248 197, India
Factory 4 :	# A-53, 2nd Main, 2nd Phase, Peenya Industrial Area, Bangalore – 560 058 Karnataka, India
Tel. No.:	91-80-40902613 / 40902614
Overseas Office 1 :	9418 N. Green Bay Road, Suite # 329, Milwaukee, WI 53209-1072, USA
Tel. No.:	414-339-8866
E-Mail :	pnedungadi@kaynestechnology.net
Overseas Office 2 :	663 Worcester Drive, Thorofare, NJ 08086-3827, USA
Tel. No.:	856-649-9320
E-Mail :	unni@kaynestechnology.net

DIRECTORS

As on 30.09.2011

Name :

Mr. Ramesh Kunhikannan

Designation :

Managing Director

Address :

232 5^th Cross, Metagall, Mysore – 570 016, Karnataka, India

Date of Birth/Age :

28.02.1964

Date of Appointment :

28.03.2008

DIN No.:

02063167

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	U00360KA1995PTC018340	Maritronics India Private Limited	Director	17-12-99	17-12-99	Active	NO
2	U29128KA2008PTC045825	Kaynes Technology India Private Limited	Director	28-03-08	28-03-08	Active	NO
3	U72900TN2009PTC073280	Kemsys Technologies Private Limited	Director	20-10-09	20-10-09	Active	NO
4	U72200KA2009PTC051856	Kaynes Embedded Systems Private Limited	Director	16-12-09	16-12-09	Active	NO

Name :

Mrs. Savitha Ramesh

Designation :

Director

Address :

Rukrani Emerald Enclave, Belavadi Post, Mysore – 570 018, Karnataka, India

Date of Birth/Age :

04.03.1972

Date of Appointment :

28.03.2008

DIN No.:

01756684

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	U51507TN2005PTC058428	Eminence Electronic Technology (India) Private Limited	Managing director	01-12-06	26-12-05	Active	NO
2	U29128KA2008PTC045825	Kaynes Technology India Private Limited	Director	28-03-08	28-03-08	Active	NO

KEY EXECUTIVES

Name :	Mr. Ganeshan
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ramesh Kunhikannan	2498750
Savitha Ramesh	1250
Total	2500000

As on 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Electrical Components, Testing Equipments, etc.
Exports :
Products :	Electrical Components
Countries :	· USA · Europe · Singapore
Imports :
Products :	Raw Material
Countries :	· Taiwan · China · USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Licensed / Installed Capacity	Actual Production (Excluding Captive Consumption)
Populated Printed Circuit Boards	2500000	760000

GENERAL INFORMATION

Suppliers :

Shogini Technoarts Private Limited

Customers :

Wholesalers and Retailers

· TBS Electronics Limited

· Larsen and Toubro

No. of Employees :

750 (Approximately)

Bankers :

· Canara Bank

No. 6, Temple Road, Jayalakshmipuram, Mysore – 570 012, Karnataka, India

· Canara Bank

No. 6, Temple Road, Mysore – 570 001, Karnataka, India

· Export-Import Bank of India

Center One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Scheduled Bank
Cash Credit and Bills Discounted	122.883	97.986
Export Packing Credit and Bills Discounted	99.272	58.444
From Others
Machinery Loan	15.294	9.534
Loan against Fixed Deposit / LC	4.202	3.385
Vehicle Loan	1.843
Total	243.494	169.349

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Global Trade Finance	0.000	10.152
HDFC Bank Limited	0.000	0.521
Reliance Capital Limited	0.000	0.375
KADD Technologies	1.877	2.140
Canara Bank Loan (Secured by fixed deposits of the managing directors)	0.000	2.567
Total	1.877	15.755

Banking Relations :

---

Auditors :

Name :

A K Krishna Moorthy

Chartered Accountants

Address :

“Sree Mahalakshmi Mandiram”, 1105, Geetha Road, Chamarajapuram, Mysore – 570 005, Karnataka, India

Subsidiaries :

Kaynes Embedded Systems Private Limited

Related Party :

Kadd Technologies

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 millions

As on 31.03.2010

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		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		155.898	103.208
4] (Accumulated Losses)		0.000	0.000
NETWORTH		165.898	113.208
LOAN FUNDS
1] Secured Loans		243.494	169.349
2] Unsecured Loans		1.877	15.755
TOTAL BORROWING		245.371	185.104
DEFERRED TAX LIABILITIES		8.361	3.327
TOTAL		419.630	301.639
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		104.876	76.034
Capital work-in-progress		0.000	0.000
INVESTMENT		12.913	0.656
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.544	93.237
	Sundry Debtors	311.807	232.061
	Cash & Bank Balances	16.816	20.594
	Other Current Assets	0.000	0.000
	Loans & Advances	89.519	45.860
Total Current Assets		536.686	391.752
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	181.857	135.061
	Other Current Liabilities	8.303	10.090
	Provisions	44.933	21.982
Total Current Liabilities		235.093	167.133
Net Current Assets		301.593	224.619
MISCELLANEOUS EXPENSES		0.248	0.330
TOTAL		419.630	301.639

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2010	31.03.2009
TURNOVER		1031.660	791.038
NET PROFIT		70.239	56.208
EARNINGS IN FOREIGN CURRENCY		446.987	129.949
IMPORTS
	Raw Materials	462.606	638.847
TOTAL IMPORTS		462.606	638.847
Earnings Per Share (Rs.)		NA	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	1330.000

Expected Sales (2011-2012) : Rs.1800.000 millions

The above information has been parted by Mr. Ganeshan

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009
Debt Equity Ratio (Total Liability/Networth)	2.90	3.11
Current Ratio (Current Asset/Current Liability)	2.28	2.34

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last two years	YES
12.	Profitability for last three years	--
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	YES
15.	Capital in the business	YES
16.	Details of sister concerns	--
17.	Major Suppliers	YES
18.	Major Customers	YES
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation 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	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

FINANCIAL RESULTS

The company has achieved a total turnover of Rs.1031.660 millions during the financial year ended 31^st March 2010 as against Rs.791.038 millions in the previous accounting period. The company has earned a net profit (after depreciation and tax) of Rs.70.239 millions as against Rs.56.208 millions in the previous accounting period. A sum of Rs.14.354 millions has been transferred to General Reserve. An interim dividend @ 100% was declared in the year ended 31^st March 2010.

contingent liabilities

Particulars	As on 31.03.2010 Rs. in millions
Bank Guarantee / Letter of Credit for purchase of materials	5.750

form 8

Corporate identity number of the company	U29128KA2008PTC045825
Name of the company	Kaynes Technology India Private Limited
Address of the registered office or of the principal place of business in India of the company	23-25, Belagola, Food Industrial Estate, Metalgalli P O, Mysore – 570 016, Karnataka, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Export-Import Bank of India Center One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation date 26/07/2011 executed by subject (The borrower) in favour of Export-Import Bank of India (Exim Bank) as security over its moveable assets for the due repayment of the loan of United States Dollars of 1 million (not exceeding Rs.45.000 millions) available in Dollars and Rupees (The Loan) granted by Exim Bank to the Borrower
Date of instrument Creating the charge	26.07.2011
Amount secured by the charge	Rs.45.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest For Rupee disbursement: 11.25% per annum payable with monthly rests For Dollar disbursement LIBOR (6 months) +400 basis points payable quarterly Terms of repayment Pre-shipment Credit: Each disbursement is repayable within 180 days from the date of such disbursement or out of realisation of export proceeds or out of post-shipment credit whichever is the earliest. Post-shipment Credit: Each disbursement is repayable within 180 days from the date of such disbursement or out of realisation of export proceeds whichever is earlier Margin 10% Extent and operation of the charge A subservient charge on the entire current assets and on the fixed assets of the Borrower, both present and future in favour of Exim Bank.
Short particulars of the property charged (Including location of the property)	Current assets and movable fixed assets of the Borrower both present and future, to the Deed of Hypothecation dated 26/7/2011 (DOH)

Trade reference

· TBS Electronics Limited

· Larsen and Toubro

· Shogini Technoarts Private Limited

Fixed Assets

· Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Electrical Fittings

· Computers and Software

· Motor Vehicles

· 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 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.51.93
UK Pound	1	Rs.80.62
Euro	1	Rs.69.37

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.