MIRA INFORM REPORT

Report Date :

30.09.2011

IDENTIFICATION DETAILS

Name :	KITEC INDUSTRIES (INDIA) LIMITED
Registered Office :	C-18/11, Jeevan, Bima Nagar, Borivali (W), Mumbai – 400 103, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.01.1994
Com. Reg. No.:	22-076323
Capital Investment / Paid-up Capital :	Rs.137.390 Millions
CIN No.: [Company Identification No.]	u74999mh1994plc076323
TAN No.: [Tax Deduction & Collection Account No.]	mumk05137G
Legal Form :	A closely held Public Limited Liability of the Company
Line of Business :	Manufacturer of revolutionary piping systems.

RATING & COMMENTS

MIRA’s Rating :

B ( 26 )

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

Maximum Credit Limit :	USD 552000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 :	C-18/11, Jeevan, Bima Nagar, Borivali (W), Mumbai – 400 103, Maharashtra
Tel. No.:	91-22-28951144 / 28934413
Fax No.:	91-22-28942549 / 28934413
E-Mail :	services@kitecindia.com ho@kitecindia.com
Website :	www.kitecindustries.com
Area :	Rented
Factory :	8 Madhuban Dam Road, Rakholi, Silvassa Dadra Nagar and Haveli – 400 396
Location :	Owned

DIRECTORS

As on: 30.09.2010

Name :	Mr. Kamal Kumar Oswal
Designation :	Director
Address :	D-35, Defence Colony, New Delhi – 110 025
Date of Birth/Age :	25.09.1949
Date of Appointment :	31.01.1994
DIN No :	00160800

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1982PTC014250	HARVEL IRRIGATIONS PRIVATE LIMITED	Director	26-08-82	26-08-82	-	Active	NO
2	U74899DL1986PTC025312	AGVET CHEMICALS PRIVATE LIMITED	Director	01-09-86	01-09-86	-	Active	NO
3	U24239DL1989PTC035274	NOVA BIOGENICS PRIVATE LIMITED	Director	01-04-92	01-04-92	-	Active	NO
4	U74999MH1994PLC076323	KITEC INDUSTRIES (INDIA) LTD	Director	01-05-10	31-10-94	-	Active	NO
5	U74999DL2001PTC112462	SYNERGY PETRO PRODUCTS PRIVATE LIMITED	Director	19-09-01	19-09-01	02-06-08	Active	NO
6	U18101DL2005PTC136481	SYNERGY FASHIONS PRIVATE LIMITED	Director	20-05-05	20-05-05	-	Active	NO
7	U01407DL2006PTC151601	HARVEL AGUA INDIA PRIVATE LIMITED	Director	04-08-06	04-08-06	-	Active	NO
8	U51909DL2002PTC115861	ARCUS MARKETING PRIVATE LIMITED	Director	01-10-09	01-10-09	-	Active	NO

Name :	Mr. Mohanlal Futarmal Bafna
Designation :	Director
Address :	501 Prahlad 17- Linking Road, Santacruz West Mumbai – 400 054, Maharashtra
Date of Birth/Age :	12.10.1943
Date of Appointment :	08.07.1995
DIN No :	01727373

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51900MH1977PTC019591	RIDHAM EXPORTS AND CONSULTANTS PRIVATE LIMITED	Director	22-03-78	22-03-78	-	Active	NO
2	U74999MH1994PLC076323	KITEC INDUSTRIES (INDIA) LTD	Director	08-07-95	08-07-95	-	Active	NO
3	U36910MH1974PTC017746	GEM PLASTO-CHEM PRIVATE LIMITED	Managing director	01-05-96	01-05-96	-	Active	NO

Name :	Mr. Rama Krishnan
Designation :	Director
Address :	G-14, Saket, New Delhi
Date of Birth/Age :	11.09.1935
Date of Appointment :	30.06.2004
DIN No :	00546256

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74999MH1994PLC076323	KITEC INDUSTRIES (INDIA) LTD	Director	30-06-04	30-06-04	-	Active	NO
2	U74140DL2004PTC125077	ASSOCIATED VAT RECOVERY CONSULTANTS PRIVATE LIMITED	Director	26-06-06	26-06-06	21-01-08	Active	NO
3	U74899DL1987PTC027598	TRANSNATIONAL INDUSTRIAL AND FINANCIAL MANAGEMENT PRIVATE LIMITED	Additional director	29-09-09	29-09-09	02-10-09	Active	YES
4	L25209HR2003PLC035034	MACHINO PLASTICS LIMITED	Director	16-07-10	17-05-10	-	Active	NO

Name :	Mr. Avinash Rameshchandra Laddha
Designation :	Director
Address :	C-18/11, Jeevandharm Jeevan Bima Nagar, Borivali (West), Mumbai – 40 1203, Maharashtra
Date of Birth/Age :	05.05.1947
Date of Appointment :	31.01.1994
DIN No :	00119190

Name :	Mr. Barry Abraham Stiefel
Designation :	Director
Address :	5, Carlyle Close, Hampstead Garden Suburb, London, United Kingdom
Date of Birth/Age :	11.12.1949
Date of Appointment :	16.06.2007
DIN No :	01568308

Name :	Mr. Robin Charles Fisher
Designation :	Director
Address :	3 Winnington Road, Hampstead Garden Road, London, United Kingdom
Date of Appointment :	18.11.1995
DIN No :	00467025

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	Equity Shares	Preference Shares
	No. of Shares
Laddha R Avinash	47930	0
Rathi R Sanjay	1100	0
Pandit R Murnalini	100	0
Dhuldhoya N Aayesha	100	0
Dhuldhoya N Nimeesha	100	0
Jain Hitendra	1000	0
Jain Shanta	500	0
Jain Deepesh	1000	0
Sariya Rita	500	0
Shah M Arun	2500	0
Shah A Raksha	2500	0
Parmar D. Sarojben	2500	0
Bhuibhar R. Sudhakar	5000	0
Arora Ramesh	1500	0
Kitec Investment Holdings Limited, Mauritius	7993400	873900
Total		873900

AS ON :30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Foreign Holdings (FIIs / Fcs / FFIs / NRIs / OCBs)		78.03
Bodies corporate		0.10
Directors or relatives of directors		18.95
Other top fifty shareholders		02.74
Others		0.18
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of revolutionary piping systems.

Products :

Product Description	Item Code No.
KITEC Composite Pipes	3917 3290
PE Pipes	3915 1000
PPR Pipes	7602 0090
PVC Pipes

Imports :

Products :

Raw Materials

Countries :

Germany, China, USA

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit, L/C

PRODUCTION STATUS (As on : 31.03.2010 ):

Particulars	Unit	Installed Capacity	Actual Production
Multilayer Composite Pipes	Mio/Meters	7.180	2.340
PPR Pipes	In 000 Kgs	1.050	NIL
PVC Pipes	In 000 Kgs	1.400	24.016
HDPE Pipes	In 000 Kgs	1.050	0.899

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

22 (Approximately)

Bankers :

· Axis Bank, S V Road, Branch, Malad, Mumbai, Maharashtra

· State Bank of India, MIDC Branch, Andheri (East) Mumbai, Maharashtra

· Saraswat Co-operative Bank Limited

· Dena Bank

· The Zoroastrian Co- Operative Bank

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Foreign Currency Loans
From a Shareholder	135.420	152.850
Loan From Banks
From Axis Bank Limited	0.068	28.088
From the Saraswat Co-op Bank Limited	0.000	9.860
Total	135.488	190.798

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Deposits from distributors	6.461	6.989
Total	6.461	6.989

Banking Relations :

---

Auditors :

Name :

M K Swadia

Chartered Accountant

Address :

314, Shriram Chambers, R C Dutt Road, Vadodara – 390 005, Gujarat

PAN No.:

AABFK7028F

Holding Company :

Kitec Investment Holding Company Limited, Mauritius

CAPITAL STRUCTURE

As on: 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
11150000	Equity Shares	Rs. 10/- each	Rs.111.500 millions
900000	5.25% Non – Cumulative Redeemable and Non – Convertible Preferences Shares	Rs. 40/- each	Rs. 36.000 millions
		Total	Rs.147.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10243400	Equity Shares	Rs. 10/- each	Rs.102.434 millions
873900	5.25% Non – Cumulative Redeemable and Non – Convertible Preferences Shares	Rs. 40/- each	Rs. 34.956 millions
		Total	Rs.137.390 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		137.390	137.390	137.390
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.786	0.201	1.503
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		138.176	137.591	138.893
LOAN FUNDS
1] Secured Loans		135.488	190.798	256.979
2] Unsecured Loans		6.461	6.989	7.293
TOTAL BORROWING		141.949	197.787	264.272
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		280.125	335.378	403.165
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		204.583	158.893	101.459
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	46.212	37.725	36.543
	Sundry Debtors	35.271	25.426	26.578
	Cash & Bank Balances	44.227	119.904	251.578
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.450	36.633	21.642
Total Current Assets		146.160	219.688	336.341
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.945	14.138	11.485
	Current Liabilities	0.000	0.000	0.000
	Provisions	31.773	29.165	23.250
Total Current Liabilities		70.718	43.303	34.735
Net Current Assets		75.442	176.385	301.606
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		280.125	335.378	403.165

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	100.640	95.152	105.879
		Resale	88.947	82.806	76.311
		Other Income	9.895	12.726	16.927
		Profit on sale of fixed assets	0.018	0.000
		TOTAL (A)	199.500	190.684	199.117
Less	EXPENSES
		Cost of Materials	55.275	49.592	47.194
		Cost of Resale	67.149	63.544	59.259
		Operation and Other Expenses	36.097	35.486	21.124
		Increase/(Decrease) in Finished Goods	(1.888)	2.918	4.836
		Increase/(Decrease) in excise duty on Finished Goods Stock	0.331	(1.063)	(1.261)
		Marketing Expenses	16.258	13.822	14.094
		TOTAL (B)	173.222	164.299	145.246
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.278	26.385	53.871
Less	FINANCIAL EXPENSES (D)		5.104	10.914	11.849
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.174	15.471	42.022
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.483	14.238	9.682
	PROFIT BEFORE TAX (E-F) (G)		0.691	1.233	32.340
Less	TAX (H)		0.107	(0.387)	(2.095)
	PROFIT AFTER TAX (G-H) (I)		0.584	0.846	30.245
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.201	1.502	(23.375)
Less	APPROPRIATIONS
		Proposed Dividend on Preference Shares	0.000	1.835	4.588
		Tax on Dividend	0.000	0.312	0.780
	BALANCE CARRIED TO THE B/S		0.785	0.201	1.502
	IMPORTS
		Raw Materials	21.583	29.718	23.850
		Capital Goods	2.815	0.000	36.496
		Spares	0.568	0.000	0.238
		Others	0.313	0.510	0.376
	TOTAL IMPORTS		25.279	30.228	60.960
	Earnings Per Share (Rs.)		(0.15)	(0.13)	5.97

Expected Sales (2010-2011) : Rs. 230.000 Millions (Approximately)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.29	0.44	15.19
Net Profit Margin (PBT/Sales)	(%)	0.69	1.30	30.54
Return on Total Assets (PBT/Total Assets)	(%)	0.20	0.33	7.39
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.23
Debt Equity Ratio (Total Liability/Networth)		1.54	1.75	2.15
Current Ratio (Current Asset/Current Liability)		2.07	5.07	9.68

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LAIBILITY

Rs. In Millions

particular	31.03.2010	31.03.2009
Estimated amount of contracts remaining to be executed on capital account and not provided for	10.879	25.000
Excise Department has raised demand for Excise Duty on the sales promotion expenses shared by the distributors and dealers. The Company has gone in appeal based on the legal advice.	1.326	1.326
Dividend on 5.25% cumulative redeemable non convertible Preference Shares for 2009-10 and Dividend Distribution Tax thereon.	2.147	0.000

PERFORMANCE REVIEW

During the year, the Company has achieved sales of Rs.198.220 Millions as against sales of Rs.188.130 Millions, registering an increase of about 5% over the previous year in spite of several challenges such as in terms of market, constantly increasing costs, interruptions in power supply and ongoing construction activities. The Company has no accumulated losses at the end of the year ended on 31 March 2010.

The sales of KiTEC Composite pipes during the year under review have increased by 9.90% over the last year in quantity terms and by 3% in terms of value.

However, with the increasing awareness of composite pipes in market, the competition has increased and the prices are under severe pressure. The Company is taking various steps to overcome the Competition

EXPANSION AND FUTURE PLANS

The Company has completed the expansion of factory and office building.

The Company has explored overseas opportunities to market the Company’s products, especially in South Africa, Eastern European countries and America. The initial response received is very positive. The Company may commence the export activities in the current financial year.

The domestic market is also improving though at the same time the competition is also increasing. However, due to the specific recognitions available, the Company has edge over the competitions

FIXED ASSETS

· Land

· Compound wall

· Tube Well

· Building

· Mould

· Building

· Ownership Flats

· Furniture and Fixtures

· Plant and Machinery

· Office equipments

· Vehicles

·

WEBSITE DETAILS

PROFILE

Welcome to world of Kitec Industries Ltd., one of the leading manufacturers and service providers of today. Their company provides an exclusive range of products which is of high optimum quality. Their range encompasses of premium quality aluminum composite pipes and polythene composite pipes and amongst services them have superior quality pipe fitting and plumbing services. Them have also become one of the renowned polythene Composite manufacturers in India.

Their company was established in the year of 1996 and in just a short span of time them made a prominent position for themselves in the market. Their company provides very high quality products and services which are available nowhere else. Them have an efficient team of employees which takes care of the quality of their products and services so that there is no compromise in their standards. Them also have a well equipped

infrastructure which is incorporated with state-of-the-art technology

They are a complete customer driven organization and them keep customer satisfaction as their priority. Them provide top quality composite pipes to their customers so that they remain satisfied. hem also provide top class services to their customers to maintain the trust that they bestow on us. Lastly them work with an objective of serving their clients with utmost care and dedication to form everlasting relations with them.

SERVICES

Their services include Pipe Fitting Services & Plumbing Services which are also of premium quality. Them provide highly reliable solutions through their services and also well within the time avoiding all delays. Them have a highly efficient team of employees which strives to produce one of the best quality products and provide one of the best quality services. Them also have state-of-the-art technology equipped in their infrastructure which also takes care of the quality standards

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.48.93
UK Pound	1	Rs.76.52
Euro	1	Rs.66.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		26

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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.