MIRA INFORM REPORT

Report Date :

10.07.2012

IDENTIFICATION DETAILS

Name :	KINETIC COMMUNICATIONS LIMITED
Registered Office :	G-92, D-III Block, MIDC, Chinchwad, Pune-411019, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.06.1995
Com. Reg. No.:	11-089588
Capital Investment / Paid-up Capital :	Rs.42.575 Millions
CIN No.: [Company Identification No.]	U74999MH1995PTC089588
TAN No.: [Tax Deduction & Collection Account No.]	PNEK05221G PNEK01156B
PAN No.: [Permanent Account No.]	AAACK7632B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is act as a engineering and design center offering cost executive engineering services.
No. of Employees :	200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 460000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has recorded a better increase in its sales turnover and profitability. Trade relations are reported as decent. Business is active. Payment 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.

INFORMATION PARTED BY

Name :	Ms. Dezy D’souza
Designation :	Assistant of Director
Contact No.:	91-9823056789
Date :	10.07.2012

LOCATIONS

Registered Office/ Factory :	G-92, D-III Block, MIDC, Chinchwad, Pune-411019, Maharashtra, India
Tel. No.:	91-20-32502190 / 27474288 / 27474204 / 27474274
Mobile No.:	91-9823056789 [Ms. Dezy D’souza]
Fax No.:	91-20-27470568
E-Mail :	dndsouza@kcl.kineticindia.com mandarsathe.cs@gmail.com
Website :	http://www.kcl.kineticindia.com
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Manish Mohan Motwani
Designation :	Managing Director
Address :	C-3, Abhimanshree Housing Society, Pashan Road, Aundh, Pune-411007, Maharashtra, India
Date of Birth/Age :	02.10.1967
Date of Appointment :	01.05.1997
Din No.:	00394860
Name :	Mrs. Jayeshree Arun Firodia
Designation :	Director
Address :	Swagat, Plot No. 20, SMT Pankunvar, Firodia Path, Pune-411016, Maharashtra, India
Date of Birth/Age :	26.01.1943
Date of Appointment :	04.09.2007
Din No.:	00328499
Name :	Mr. Ajay Raina
Designation :	Director
Address :	Building A, Flat No. 201, S. No. 128/1, Resi, 3 Phase, Prime Heights, SUS, Pune-411021, Maharashtra, India
Date of Birth/Age :	10.02.1964
Date of Appointment :	27.03.2008
Din No.:	02105211

KEY EXECUTIVES

Name :	Ms. Dezy D’souza
Designation :	Assistant of Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Kinetic Engineering Limited, India	16000
Vepa Murrai	100
Sanjeev Kulkarni	100
Prakash Chandra Jain	100
Saroop Mulchandani	100
Jayeshree Arun Firodia	2764980
Manish Mohan Motwani	1468620
Madhav Kulkarni	7500
Total	4257500

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.38
Directors or relatives of directors	99.43
Other top fifty shareholders	0.19
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is act as a engineering and design center offering cost executive engineering services.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Electronic Products	85.11
PCB ASSLY	85.11

Terms :

Selling :

Cash and Credit [30 and 60 Days]

Purchasing :

Cash and Credit [30 and 60 Days]

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
CDI	Nos.	450000	0
PCB ASSLY	Nos.	1500000	1282667

NOTE: Installed capacity as certified by the Managing Director and accepted by auditors. Installed capacity is estimated and the same is interchangeable depending upon the product mix.

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

200 [Approximately]

Bankers :

State Bank of India, Chinchwad Branch, Pune, Maharashtra, India

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
CASH CREDIT FROM STATE BANK OF INDIA (Secured by Hypothecation of raw materials, stores and spare, Book Debts and all other current assets.)	0.000	0.000
TERM LOAN FROM STATE BANK OF INDIA (Secured by Hypothecation of specific Assets purchased under loan and other specific Assets as Collateral security.) (Due within a year Rs.60,04,494 (Rs.66,00,000)	6.004	12.959
Total	6.004	12.959
UNSECURED LOAN
Sales Tax Deferral (Due within a year Rs.0.546 Million)	19.412	19.412
Total	19.412	19.412

Banking Relations :	--
Auditors :
Name :	P.G. Bhagwat Chartered Accountants
Address :	Suit 101-102, Orchard, Dr. Pai Marg, Baner, Pune-411045, Maharashtra, India
Pan No.:	AAAFB0762E
Associates :	· Ducati Energia (India) Private Limited · Kinetic Hankuk Electricals and Electronics Private Limited
Enterprises over which Key Managerial Personnel or their relatives are able to exercise significant influence :	· Chrysalis Financial Services Private Limited · Jaya Hind Sciaky Limited · JHS Taigene Electrical Company Private Limited · Kinetic Engineering Limited · Kinetic Hyundai Escalator and Movement Technologies Limited · Kinetic Marketing and Services Limited · Kinetic Motor Company Limited · Kinetic FGTecnopolo Engineering Services Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4300000	Equity Shares	Rs.10/- each	Rs.43.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4257500	Equity Shares	Rs.10/- each	Rs.42.575 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		42.575	42.575	42.575
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		72.643	50.774	45.938
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		115.218	93.349	88.513
LOAN FUNDS
1] Secured Loans		6.004	12.959	22.383
2] Unsecured Loans		19.412	19.412	19.352
TOTAL BORROWING		25.416	32.371	41.735
DEFERRED TAX LIABILITIES		0.427	0.000	0.000
TOTAL		141.061	125.720	130.248
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		60.709	55.584	52.008
Capital work-in-progress		0.000	0.000	9.279
INVESTMENT		15.997	15.997	15.997
DEFERREX TAX ASSETS		0.000	0.257	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.623	23.254	22.193
	Sundry Debtors	37.065	38.366	45.006
	Cash & Bank Balances	22.995	10.308	0.053
	Other Current Assets	1.310	1.393	1.448
	Loans & Advances	9.110	9.896	14.442
Total Current Assets		92.103	83.217	83.142
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.237	22.779	22.347
	Other Current Liabilities	5.083	5.820	7.095
	Provisions	0.428	0.736	0.736
Total Current Liabilities		27.748	29.335	30.178
Net Current Assets		64.355	53.882	52.964
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		141.061	125.720	130.248

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	211.365	178.785	144.476
Less	EXPENSES
		Office Expenses
		Administrative Expenses	178.720	174.300	152.591
		Advertising Expenses
		TOTAL	178.720	174.300	152.591
	PROFIT / (LOSS) BEFORE TAX		32.645	4.485	(8.115)
Less	TAX		10.776	(0.351)	(0.867)
	PROFIT / (LOSS) AFTER TAX		21.869	4.836	(7.248)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	45.241	52.489
	BALANCE CARRIED TO THE B/S		NA	50.077	45.241
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	11.130	0.834	18.990
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	63.868	55.169	40.730
		Capital Goods	12.105	1.389	5.901
		Others	0.958	0.000	0.000
	TOTAL IMPORTS		76.931	56.558	46.631
	Earnings / (Loss) Per Share (Rs.)		5.14	1.14	--

IMPORTANT NOTE:

There is some error in the March 2011 Director’s Report. It is mentioned that the ANNUAL REPORT ON THE WORKING OF THE COMPANY FOR THE YEAR ENDED ON 31^ST MARCH 2011 but the financial results are as on 31.03.2010. We have obtained the profit and loss account figures from the balance sheet abstract.

Particulars	31.03.2012
Sales Turnover [Approximately]	250.000

Expected Sales (2012-13) : More than Rs.300.000 Millions.

The above information has been parted by Ms. Dezy D’souza.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.35	2.70	(5.02)
Return on Total Assets (PBT/Total Assets}	(%)	21.36	3.23	(6.00)
Return on Investment (ROI) (PBT/Networth)		0.28	0.05	(0.09)
Debt Equity Ratio (Total Liability/Networth)		0.46	0.66	0.81
Current Ratio (Current Asset/Current Liability)		3.32	2.84	2.75

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	22.237	22.779	22.347

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

NOTE: The registered office of the company has been shifted from D-1 block, Plot No. 18/2, Chinchwad, Pune-411019, Maharashtra, India to the present address w.e.f. 20.04.2009.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Sales tax matter under appeal	2.504	2.210
Income tax matter under appeal	0.285	0.000
Total	2.789	2.210

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Computer Software

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.56.02
UK Pound	1	Rs.86.77
Euro	1	Rs.68.83

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.