MIRA INFORM REPORT

Report Date :

19.03.2012

IDENTIFICATION DETAILS

Name :	KAPCO ELECTRIC PRIVATE LIMITED
Registered Office :	C-309, Sarita Vihar, Delhi – 110044
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.03.1984
Com. Reg. No.:	55-17684
Capital Investment / Paid-up Capital :	Rs.12.250 Millions
CIN No.: [Company Identification No.]	U74899DL1984PTC017684
TAN No.: [Tax Deduction & Collection Account No.]	DELK07152F
PAN No.: [Permanent Account No.]	AAACK3740Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Current and Voltage Transformers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 74000
Status :	Moderate
Payment Behaviour :	Slow but Correct
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 but correct. The company can be considered for small business dealings at usual trade terms and conditions. 2010-2011 Profit and Loss of the company is not available.

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 :	C-309, Sarita Vihar, Delhi – 110044, India
Tel No.:	Not Available
Fax No.:	Not Available
E-Mail :	kapco@airtelmail.in
Website :	http://www.kapco.in
Factory 1 :	A-8, Sector-83, Phase II, Noida-201305, Uttar Pradesh, India
Tel. No.:	91-120-4630200
Fax No.:	91-120-4630201
E-Mail :	sales@kapco.in

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Sharad Damodar Kulkarni

Designation :

Director

Address :

C-309, Sarita Vihar, New Delhi-110044, India

Qualification:

Electrical Engineer

Date of Birth/Age :

09.10.1941

Date of Appointment :

12.03.1984

DIN No.:

00246092

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	U74899DL1984PTC017684	KAPCO ELECTRIC PRIVATE LIMITED	Director	12-03-84	12-03-84	Active	NO
2	U74899DL1990PTC041881	KAPCO TRANSFORMERS PRIVATE LIMITED	Director	26-10-90	26-10-90	Active	NO

Name :

Mr. Shantanu Kulkarni

Designation :

Managing Director

Address :

C-309, Sarita Vihar, New Delhi-110044, India

Date of Birth/Age :

05.12.1973

Qualification :

MBA in Finance

Date of Appointment :

22.08.1998

DIN No.:

00246114

Name :

Mr. Shashi Kulkarni

Designation :

Director

Address :

C-309, Sarita Vihar, New Delhi-110044, India

Date of Birth/Age :

01.09.1947

Date of Appointment :

22.08.1998

DIN No.:

00246138

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	U74899DL1990PTC041881	KAPCO TRANSFORMERS PRIVATE LIMITED	Director	10-12-92	10-12-92	Active	NO
2	U74899DL1984PTC017684	KAPCO ELECTRIC PRIVATE LIMITED	Director	22-08-98	22-08-98	Active	NO

KEY EXECUTIVES

Name :	Ms. Suruchi Kulkarni
Designation :	General Manager (Marketing)
Qualification :	MBA in Marketing
Email :	suruchi@kapco.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Kulkarni Sharad Damodar	3295
Kulkarni Shantanu	217
Kulkarni Shashi	4358
Kulkarnid Suruchi	130
Amarnath Buildcon Private Limited, India	600
AGP Bio Energy Private Limited, India	850
Trupti Balaji Hi- Tech Systems Private Limited, India	1200
Omni Present Credit Private Limited, India	300
Wiseman Trading Private Limited, India	1300
Total	12250

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	35.00
Directors or relatives of directors	65.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Current and Voltage Transformers.

GENERAL INFORMATION

Customers :

· ABB Limited

· Alstom

· Bajaj Electronics Limited

· BSES

· BHEL

· Indian Oil

· Siemens

· Tata Power

· Areva T and D India Limited

· NHPC

· NTPC

· NDPL

· Suzlon Power Infrastructure Private Limited

· SPML

· Powergrid

· Crompton Greaves

· Reliance Energy

· Vijai Electricals Limited

· Voltas Limited

No. of Employees :

Not Available

Bankers :

· Bank of India,

Okhla SME Branch, DSIDC Complex, Okhla Industrial Area, Phase-1, New Delhi – 110020, India

· Punjab National Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Cash Credit with Bank of India (Secured against hypothecation against stocks)	37.866	6.383
Cash Credit with Bank of India (Secured against hypothecation against Book debts)	--	15.796
Term Loan from Bank of India (Secured against land and building)	--	0.314
Term Loan from Bank of India (Secured against Maruti Swift Dzire Car)	0.014	0.213
Term Loan Form Bank of India (Secured against Guest House)	4.829	--
Term Loan from Bank of India (Secured against plant and machinery)	0.708	1.260
Term Loan from Bank of India (Secured against Plant and Machinery)	0.551	0.962
Term Loans from Bank of India (Secured against plant and machinery)	1.923	1.158
Total	45.891	26.086
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Due from Directors
S D Kulkarni	0.956	0.683
Shashi Kulkarni	1.737	0.372
Due From Others
PSB Investment and Hire Purchase Limited	--	0.210
Total	2.693	1.265

Banking Relations :	--
Auditors :
Name :	Prem Gupta and Company Chartered Accountant
Address :	4, Shivaji Marg, Najafgarh Road, New Delhi – 110015, India
PAN No.:	AAAFP6102E

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
12500	Equity Shares	Rs.1000/- each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12250	Equity Shares	Rs.1000/- each	Rs.12.250 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		12.250	12.250	9.950
2] Share Application Money		0.000	0.000	1.600
3] Reserves & Surplus		6.220	5.004	3.890
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.470	17.254	15.440
LOAN FUNDS
1] Secured Loans		45.891	26.086	24.861
2] Unsecured Loans		2.693	1.265	0.800
TOTAL BORROWING		48.584	27.351	25.661
DEFERRED TAX LIABILITIES		0.056	0.074	0.083
TOTAL		67.110	44.679	41.184
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.735	15.919	14.947
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.273	3.248	3.253
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.559	16.172	10.912
	Sundry Debtors	40.296	20.729	21.275
	Cash & Bank Balances	0.056	0.068	0.024
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.617	6.295	4.794
Total Current Assets		76.528	43.264	37.005
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	22.566	12.017	8.061
	Other Current Liabilities	7.486	5.493	5.684
	Provisions	0.600	0.525	0.615
Total Current Liabilities		30.652	18.035	14.360
Net Current Assets		45.876	25.229	22.645
MISCELLANEOUS EXPENSES		0.226	0.283	0.339
TOTAL		67.110	44.679	41.184

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	98.092	82.243
		Other Income	0.512	0.247
		TOTAL (A)	98.604	82.490
Less	EXPENSES
		Increase/ (Decrease) in Stock	(4.010)	(4.168)
		Raw Material Consumed	68.323	57.767
		Manufacturing and Other Expenses	12.271	10.594
		Office and Administration Expenses	8.826	5.748
		Selling and Distribution Expenses	5.173	5.217
		Other Expenses	0.506	0.357
		TOTAL (B)	91.089	75.515
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.515	6.975
Less	FINANCIAL EXPENSES (D)		4.002	3.619
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.513	3.356
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.852	1.839
	PROFIT BEFORE TAX (E-F) (G)		1.661	1.517
Less	TAX (H)		0.547	0.597
	PROFIT AFTER TAX (G-H) (I)		1.114	0.920
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.743	2.823
	BALANCE CARRIED TO THE B/S		4.857	3.743
	Earnings Per Share (Rs.)			92.46

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	1.13	1.12
Net Profit Margin (PBT/Sales)	(%)	NA	1.69	1.84
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.81	2.92
Return on Investment (ROI) (PBT/Networth)		NA	0.10	0.10
Debt Equity Ratio (Total Liability/Networth)		4.29	2.63	2.59
Current Ratio (Current Asset/Current Liability)		2.50	2.40	2.58

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL

During the year the company earned a net profit of Rs.1.837 Millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U74899DL1984PTC017684
Name of the company	KAPCO ELECTRIC PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-309, Sarita Vihar, Delhi-110044, India kapco@aitrtelmail.in
This form is for	Modification of charge
Charge Identification number of the charge to be modified	90055539
Type of charge	· Immovable Property · Book Debts · Movable Property · Floating Charge · Others: Stock, BD, P and M, EM of Immovable Properties
Particular of charge holder	Bank of India, Okhla SME Branch, DSIDC Complex, Okhla Industrial Area, Phase-1, New Delhi-110020, India gselvam.ganesan@gmail.com
Nature of instrument creating charge	Supplementary Deed of Hypothecation, term Loans Agreement
Date of instrument Creating the charge	12.03.2011
Amount secured by the charge	Rs.99.645 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest Interest as per sanction terms and bank norms Terms of Repayment Repayment as per sanction terms and bank norms Margin Margin as per sanction terms and bank norms Extent and Operation of the charge First charge on asset mentioned in Col 15 is to secure the aggregate credit facilities sanctioned to the company to the extent of Rs 99.645 Millions: 1 CC Stocks Rs.20.000 Millions 2 CC Book Debts Rs.20.000 Millions Max 1+2 Rs. 35.000 Millions 3 IBP Rs.20.000 Millions Max 1+2+3= Rs. 47.500 Millions. NFB: BG Rs.35.000 Millions inland LC Rs.1.500 Millions Max, NFB Rs. 35.000 Millions TL-III Rs. 0.629 Million TL- IV Rs. 0.808 Million TL V Rs. 5.000 Millions TL VI Rs. 6.000 Millions TL New for Machinery Rs.4.700 Millions Aggregate Limits Rs.99.645 Millions.
Short particulars of the property charged	Hypothecation of Plant and Machinery, Stocks, Book debts other current and fixed assets present and future. Equitable Mortgage of property at Plot No. 8, Block A Sector 83 Phase –II, Noida Together with Land and Building constructed/ to be constructed thereon. Collateral Security E M of Residential Flat At C-309, Sarita Vihar, New Delhi in the Name of Mr. Sharad Damodar Kulkarni
Particulars of the present modification	The amount secured is increased to Rs. 99.645 Millions to secure the aggregate credit facilities as details: Hypothecation of Plant and Machinery, Stocks, Book debts other current and fixed assets present and future. E M of Property at Plot No. 8, Block A Sector 83 Phase-II, Noida Collateral Security E M of residential Flat at C-309 Sarita Vihar, New Delhi in the name of Mr. Sharad Damodar Kulkarni

FIXED ASSETS:

· Plant and Machinery

o Air Compressor

o Air Blower

o Fire Extinguishers

o Furnace

o Xerox Machinery

o Machinery

o Testing Equipments

o Tools and Dues

o Pump Set

o Off Test System

o Off Storage Tank

o Plate From Scale

o Generator Set

o Capacitors

o Hydrolic

o Drill Machine

o Winding Controller

o Voltage Regulator

o Vaccum Plant

o Chain Pulley

· Furniture and Fixtures

o Electrical Installation

o Furniture

o Fans

o Office Equipments

o Fax

o EPBX

o Typewriters

o Air Condiiton

o Printer

o Battery Inverter

o Cellular Phone

o UPS

o Water Purifier

o Water cooler

o Cycles

o Car

o Computer

· Land and Building

o Land

o Building

AS PER WEBSITE

MANAGEMENT:

Mr. S. D. Kulkarni

Director

An electrical engineer by education, Mr. Kulkarni has spent teaching the same as a professor for eight years, lending him a strong and sound theoretical base. He also worked for Madhya Pradesh Electric Board (MPEB) and many reputed electrical agencies like Minilec and Statfield before founding Kapco in 1980. Since then, he has played a key role in providing vision and direction to the company. As recognition of his contributions to the Industry, Mr. Kulkarni was awarded the prestigious Udyog Patra Award in He continues to provide invaluable guidance to the entire Kapco team and is an inspiration to the entire Industry.

Mr. Shantanu Kulkarni

Managing Director

Armed with an Engineering Degree in Electronics and Communication and an MBA in Finance, Shantanu has played an instrumental role in swiftly bringing modern practices to Kapco since his joining in 1997.

Under his energetic leadership, Kapco has embraced the latest technological practices for its internal and external practices. His strong focus on processes has led to excellent quality standards and benchmarks. All these changes have gone a long way in getting Kapco the coveted ISO 9001:2008 certification.

Ms. Suruchi Kulkarni

General Manager (Marketing)

With an MBA in Marketing and rich experience in organizations such as Fujitsu ICIM and Escorts, Suruchi has ably led the marketing function at Kapco since 2002 to establish high standards in the areas of client servicing.  Her ability to accurately understand and address client requirements has resulted in long term relationships with organizations of International repute. Suruchi continues to serve as the face of Kapco to many a client

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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

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	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		29

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.