MIRA INFORM REPORT

Report Date :

04.05.2012

IDENTIFICATION DETAILS

Name :	KAVITSU TRANSMISSIONS PRIVATE LIMITED
Registered Office :	W – 85, Additional MIDC, Opposite PMP Auto India, Satara – 415004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.12.2000
Com. Reg. No.:	25-015653
Capital Investment / Paid-up Capital :	Rs.7.500 Millions
CIN No.: [Company Identification No.]	U31103PN2000PTC015653
IEC No.:	3105021132
TAN No.: [Tax Deduction & Collection Account No.]	PNEK04933F
PAN No.: [Permanent Account No.]	AABCK9532F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Planetary Gear Boxes.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 140000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. General financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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. Nilesh Gadkari
Designation :	Marketing Manager
Contact No.:	91-9960745960
Date :	18.04.2012

LOCATIONS

Registered Office :	W – 85, Additional MIDC, Opposite PMP Auto India, Satara – 415004, Maharashtra, India
Tel. No.:	91-2162-24080314/ 247804/ 240803/ 240803/ 240824
Mobile No.:	91-9960745960 (Mr. Nilesh Gadkari)
Fax No.:	91-2162-245341/ 240805
E-Mail :	kavitsu8888@sify.com vnacoca@gmail.com
Website :	http://kavitsugear.com
Area :	780 Sq. mtr.
Location :	Owned
Factory :	Jetwell Additional MIDC, Satara – 415004, Maharashtra, India
Area :	7750 Sq. mtr.
Location :	Owned
Branch Office :	Office No. 4, 3^rd Floor, Kedar Empire, Opposite SNDT College, Karve Road, Erandawane, Pune – 411004, Maharashtra, India
Tel. No.:	91-20-25450805
Area :	600 Sq. ft
Location :	Owned

DIRECTORS

As on 22.09.2011

Name :

Mr. Vasant Gulabrao Phadtare

Designation :

Managing Director

Address :

S. No. 491/40, Sardar Bazar, Satara-415001, Maharashtra, India

Date of Birth/Age :

11.08.1957

Date of Appointment :

21.12.2000

DIN No.:

00506674

Name :

Mr. Vikrant Vasant Phadtare

Designation :

Director

Address :

Nilpavriksha, Survey No. 491/40, Cooper Bunglow, Kanishka Hall Road, Utekar Nagar, Satara-415519, Maharashtra, India

Date of Birth/Age :

07.11.1985

Date of Appointment :

29.03.2010

DIN No.:

03014162

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	U31103PN2000PTC015653	KAVITSU TRANSMISSIONS PRIVATE LIMITED	Director	30/09/2010	29/03/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nilesh Gadkari
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2011

Names of Shareholders	No. of Shares
Vasant Gulabrao Phadtare	525000
Kalpana Vasant Phadtare	75000
Kaustubh Vasant Phadtare	75000
Vikrant Vasant Phadtare	75000
Total	750000

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Planetary Gear Boxes.
Exports :
Products :	Planetary Gear Boxes
Countries :	· Thailand · Middle East Africa
Terms :
Selling :	Cash/ Credit (30 – 60 days)
Purchasing :	Cash/ Credit (30 – 60 days)

GENERAL INFORMATION

Suppliers :

Dhavalikar Engineering Works

Customers :

End Users, OEM’s

· Voltas Limited

No. of Employees :

300 (Approximately)

Bankers :

State Bank of India, MIDC, Satar Branch, Satara-415004, Maharashtra, India

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

Facilities :

Cash Credit – Rs.33.000 Millions, Term Loan – Rs.7.500 Millions, Cash Credit – Rs.2.000 Millions

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Bank Cash Credit	34.273	24.336
Secured Loans	14.237	11.003
Total	48.510	35.339
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans from Shareholders and Directors	3.200	0.783
Total	3.200	0.783

Banking Relations :	--
Auditors :
Name :	V N Astekar and Company Chartered Accountants
Address :	Office No. 829, Kedar Empire, Opposite SNDT College, Karve Road, Erandwane, Pune – 411038, Maharashtra, India
PAN.:	AAZPA3377R
Related Party :	Kavitsu Automation, Satara Line of Business: Manufacturing of Planetary Gear Boxes. Kavitsu Machine O-Elektrik, Satara Line of Business: Manufacturing Elektrik Motor

CAPITAL STRUCTURE

As on 31.03.2011

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
750000	Equity Shares	Rs.10/- each	Rs.7.500 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		7.500	6.055	4.821
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.840	21.445	17.440
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.340	27.500	22.261
LOAN FUNDS
1] Secured Loans		48.510	35.339	30.455
2] Unsecured Loans		3.200	0.783	2.033
TOTAL BORROWING		51.710	36.122	32.488
DEFERRED TAX LIABILITIES		1.158	1.375	0.334
TOTAL		88.208	64.997	55.083
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.813	36.043	28.240
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	36.726	19.046	7.692
	Sundry Debtors	68.652	50.513	42.767
	Cash & Bank Balances	3.729	1.238	0.140
	Other Current Assets	2.796	1.521	1.446
	Loans & Advances	1.480	0.846	0.805
Total Current Assets		113.383	73.164	52.850
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		38.323	20.964
	Other Current Liabilities	56.535	1.728	1.570
	Provisions	6.453	4.159	3.473
Total Current Liabilities		62.988	44.210	26.007
Net Current Assets		50.395	28.954	26.843
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		88.208	64.997	55.083

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	164.538	107.846	105.300
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
EXPENSES
	Office Expenses	157.962	98.521	93.884
	Administrative Expenses
	Advertising Expenses
	TOTAL	157.962	98.521	93.884
PROFIT BEFORE TAX		8.908	6.547	9.676
TAX		2.730	1.501	2.894
PROFIT AFTER TAX		6.395	4.005	6.463
BALANCE CARRIED TO THE B/S		6.395	4.005	6.463
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	1.376	NA	NA
TOTAL EARNINGS		1.376	NA	NA
Earnings Per Share (Rs.)		8.53	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	230.000 [Due to more demand]

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

The above information has been parted by Mr. Nilesh Gadkari.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	5.41	6.07	9.19
Return on Total Assets (PBT/Total Assets}	(%)	5.89	5.99	11.93
Return on Investment (ROI) (PBT/Networth)		0.25	0.24	0.43
Debt Equity Ratio (Total Liability/Networth)		3.24	2.92	2.63
Current Ratio (Current Asset/Current Liability)		1.80	1.65	2.03

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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%	Yes
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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

Bankers Charges Report as per Registry

Corporate identity number of the company	U31103PN2000PTC015653
Name of the company	KAVITSU TRANSMISSIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	W-85, Additional MIDC, Opposite PMP Auto India, Satara-415004, Maharashtra, India Email : vnacoca@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90086968
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India, MIDC, Satar Branch, 52/3, Ganesh Chowk, Rahimtpur Road, Satara-415004, Maharashtra, India Email : ajit.sahane@sbi.co.in
Nature of instrument creating charge	Supplemental Agreement of Loan cum Hypothecation
Date of instrument Creating the charge	27.04.2011
Amount secured by the charge	Rs.57.443 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As determined by the Bank from time to time Presently - on DCC and SME Credit plus 6.75% p.a. above base rate Terms of Repayment Working capital - on demand Term Loan - as per original sanction Margin As prescribed by the Bank from time to time Extent and Operation of the charge First charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All present and future stocks of raw materials, finished goods, stock in process, book-debts and receivables
Date of instrument modifying the charge	29.05.2010
Particulars of the present modification	Additional DCC of Rs.7.000 Millions and B/G of Rs.14.000 Millions granted. Existing Term Loans reduced to its outstanding amount of Rs.0.918 Millions and Rs.4.525 Millions. Hence, amount of charge increased from Rs.39.622 Millions to Rs.57.443 Millions [DCC Rs.35.000 Millions, SME Credit Plus Rs.2.000 Millions, B/G Rs.15.000 Millions, T/L -1 (o/s) Rs.0.918 Million, T/L -2 (o/s) Rs.4.525 Millions]

FINANCIAL RESULTS/ OPERATIONS

The performance of the Company in terms of sales and profits was much better during the year ended as on 31^st March 2011. The sales of the Company during the financial year amounted to Rs. 164.500 Millions approx. The net profit before tax was Rs. 8.908 Millions approx and the net profit after tax was Rs. 6.395 Millions.

Keeping in view the increasing demand for the company's products, the directors have undertaken an expansion programme and it is expected that first stage of the expansion programme will be completed within the next 12 months. The director propose to raise part of the funds required for the expansion programme by way of additional secured loans from banks and part of the funds required by way of further issue and allotment of shares to the willing investors.

TRADE REFERENCES

· Dhavalikar Engineering Works

· Voltas Limited

FIXED ASSETS

· Leasehold Land

· Site Development

· Factory Building

· Plant and Machinery

· Tools and Equipments

· Furniture and Fixtures

· Office Equipments

· Computer

· Motor Car

· Electrical Installations

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.53.24
UK Pound	1	Rs.86.14
Euro	1	Rs.69.98

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	CTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.