MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	KANTILAL CHUNILAL AND SONS APPLIANCES PRIVATE LIMITED
Registered Office :	48-51, Road No. 3, Udyog Nagar, Udhna, Distrist Surat – 394 210, Gujarat
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	09.05.1975
Com. Reg. No.:	04-02704
Capital Investment / Paid-up Capital :	Rs.5.100 Millions
CIN No.: [Company Identification No.]	U32201GJ1975PTC002704
PAN No.: [Permanent Account No.]	AABCK1313Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Heaters and other Heating Systems
No. of Employees :	90 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 37000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financials of the company with the government departments after the years 2009. 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 – 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. Nirupam Doshi
Designation :	Director
Contact No.:	91-3824136995
Date :	02.05.2012

LOCATIONS

Registered Office / Factory :	48-51, Road No. 3, Udyog Nagar, Udhna, Distrist Surat – 394 210, Gujarat, India
Tel. No.:	91-261-2277555 / 2276888
Mobile No.:	91-9824136995 (Nirupan Doshi)
Fax No.:	91-261-2276666 / 2277138
E-Mail :	info@spherehatkcsa.com pnd@spherehotkcsa.com
Website :	www.spherehatkcsa.com
Location :	Owned
Branch :	Vithalwadi, Kalbadevi, Mumbai, Maharashtra, India

DIRECTORS

Name :

Mr. Nirupam Doshi

Designation :

Director

Address :

903, Rajeshwar Apartment, Nanpura, Surat, Gujarat, India

Date of Birth/Age :

14.10.1950

Qualification :

B. Sc.

Date of Appointment :

09.05.1975

DIN No. :

03095948

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	U32201GJ1975PTC002704	KANTILAL CHUNILAL AND SONS APPLIANCES PRIVATE LIMITED	Director	9/5/1975	9/5/1975	-	Active	YES
2	U31909GJ1985PTC007751	DOSHI HEATERS PRIVATE LIMITED	Director	27/03/1985	27/03/1985	-	Active	YES
3	U65910GJ1981PTC004368	SPECIALITY HEATERS PRIVATE LIMITED	Director	1/12/2001	1/12/2001	-	Dormant	NO
4	U28999GJ1981PTC004235	DOSHI TUBES PRIVATE LIMITED	Director	12/4/2010	12/4/2010	-	Active	YES

Name :

Ms. Snehal Navin Doshi

Designation :

Director

Address :

601-A, Gokul Divine Co-Operative Housing Society Limited, Irla, S V Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

19.12.1968

Date of Appointment :

17.04.2010

DIN No. :

03093531

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	U65910GJ1981PTC004368	SPECIALITY HEATERS PRIVATE LIMITED	Director	1/12/2001	1/12/2001	-	Dormant	NO
2	U28999GJ1981PTC004235	DOSHI TUBES PRIVATE LIMITED	Director	12/4/2010	12/4/2010	-	Active	YES
3	U31909GJ1985PTC007751	DOSHI HEATERS PRIVATE LIMITED	Director	15/04/2010	15/04/2010	-	Active	YES
4	U32201GJ1975PTC002704	KANTILAL CHUNILAL AND SONS APPLIANCES PRIVATE LIMITED	Director	17/04/2010	17/04/2010	-	Active	YES

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2009

Names of Shareholders	No. of Shares
Navin J Doshi	4260
Jyotsana N Doshi	4260
Snehal N Doshi	2115
Nikunj N Doshi	2115
Arvind J Doshi	4260
Shobana A Doshi	4260
Janish A Doshi	2115
Himanshu N Doshi	2115
Prakash Doshi	4260
Ajita Doshi	4260
Parag P Doshi	4230
Nirupam P Doshi	4260
Kalpana N Doshi	4260
Pankhil N Doshi	4230
Total	51000

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Heaters and other Heating Systems
Products :	· Water Heater · Component Heaters · Circulation Heaters · Canteen Equipments · Domestic Appliances · S.S. Tubes · Process Heaters
Exports :
Products :	Heaters and other Heating System
Countries :	· Australia · Far East
Imports :
Products :	Raw Materials
Countries :	UK Span South America
Terms :
Selling :	Advances
Purchasing :	Advances

PRODUCTION STATUS AS ON 31.03.2009

Particulars	Unit	Actual Production
Heaters System	Pieces	2000

GENERAL INFORMATION

Suppliers :

Doshi Tubes private Limited

Customers :

Manufacturer, Retailers and traders

• Sasha Exports

No. of Employees :

90 Approximately

Bankers :

· ICICI Bank, Zaveri Bazar, Mumbai, Maharashtra, India

· Bank of Baroda , Industrial Estate, Udhna Branch, Surat, Gujarat, India

Facilities :

Secured Loans	As on 31.03.2009 Rs. in millions	As on 31.03.2008 Rs. in millions
Term Loans
Bank of Baroda – WCTL	0.000	9.849
Bank of Baroda – FITL	0.000	1.109
Working Capital Loans
Bank of Baroda – CC (Hypothecation of Stocks)	0.000	5.990
AB Bill a/c with BOB Udhna	0.000	0.956
Total	0.000	17.904

Unsecured Loans	As on 31.03.2009 Rs. in millions	As on 31.03.2008 Rs. in millions
Deposits from Companies
Others	28.019	26.400
Total	28.019	26.400

Banking Relations :	--
Auditors :
Name :	Chinmay A Nanavati Chartered Accountant
Address :	502, Lalbhai Contractor Complex, Near Library, Nanpura, Surat – 395 001, Gujarat, India
PAN No. :	AAUPN3967D

CAPITAL STRUCTURE

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Ordinary Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
51000	Ordinary Shares (Includes 10000 Shares issued for consideration other than cash)	Rs.100/- each	Rs.5.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		5.100	5.100	5.100
2] Share Application Money		3.900	0.000	0.000
3] Reserves & Surplus		11.237	0.307	0.307
4] (Accumulated Losses)		(11.111)	(13.685)	0.000
NETWORTH		9.126	(8.278)	5.407
LOAN FUNDS
1] Secured Loans		0.000	17.904	28.154
2] Unsecured Loans		28.019	26.400	24.976
TOTAL BORROWING		28.019	44.304	53.130
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		37.145	36.026	58.537
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.236	1.862	3.416
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.014	0.014	0.014
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.221	4.724	6.311
	Sundry Debtors	14.306	11.460	11.877
	Cash & Bank Balances	1.263	3.017	3.428
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.816	40.384	32.143
Total Current Assets		62.606	59.585	53.759
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.553	23.660	20.651
	Other Current Liabilities	1.056	1.660
	Provisions	0.102	0.115	0.000
Total Current Liabilities		27.711	25.435	20.651
Net Current Assets		34.895	34.150	33.108
MISCELLANEOUS EXPENSES		0.000	0.000	21.999
TOTAL		37.145	36.026	58.537

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	44.994	42.491	40.718
		Other Income		9.429	0.000
		TOTAL (A)	44.994	51.920	40.718
Less	EXPENSES
		Manufacturing Expenses	43.686	8.275	8.626
		Administrative Expenses		10.125	8.677
		Raw Material Consumed		18.452	17.566
		Purchases made for re-sale		5.225	4.969
		Increase/(Decrease) in Finished Goods		0.000	0.019
		Other Expenditure		0.448	3.136
		TOTAL (B)	43.686	42.525	42.993
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.308	9.395	(2.275)
Less	INTEREST (D)		NA	0.821	0.821
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.308	8.574	(3.096)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.279	0.260	0.418
	PROFIT BEFORE TAX (E-F) (G)		1.029	8.314	(3.514)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		1.029	8.314	(3.514)
	Earnings Per Share (Rs.)		20.18	163.00	--

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	55.000	50.000

Expected Sales (2012-13) : Rs.75.000 Millions

The above information has been parted by Mr. Nirupam Doshi

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	2.29	16.01	(8.63)
Net Profit Margin (PBT/Sales)	(%)	NA	19.57	(8.63)
Return on Total Assets (PBT/Total Assets}	(%)	1.59	13.53	(6.15)
Return on Investment (ROI) (PBT/Networth)		0.11	(1.00)	(0.65)
Debt Equity Ratio (Total Liability/Networth)		6.11	(8.42)	13.65
Current Ratio (Current Asset/Current Liability)		2.26	2.34	2.60

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	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	No
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	No
30) Major Shareholders, if available	Yes

Trade References

• Doshi Tubes private Limited
• Sasha Exports

RESULT OF OPERATIONS

The Sales of the company has been increased from Rs.42.491 millions to Rs.44.994 millions during the year. However, the profit before tax has been decrease from Rs.8.314 millions to Rs.1.029 millions. The directors expected better results during the current financial year.

FORM 8

Name of the company	KANTILAL CHUNILAL AND SONS APPLIANCES PRIVATE LIMITED.
Presented By	Shri Navinchandra J Doshi, Director
1) Date and description of instrument creating the change	Memorandum of Deposit of Title Deeds dated 13^th September, 2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs.77.800 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Equitable Mortgage of Plots Nos. 48 to 51 of land and Industrial sheds, Office Premises, and other structures constructed and standing thereon.
4) Gist of the terms and conditions and extent and operation of the charge.	Various Credit Limits of the Company and its other three associate concerns totaling to Rs.77.800 millions, granted by Bank of Baroda, Udhna Branch, Surat is secured by equitable mortgage. The operation of the ‘Charge’ will continue till clearance of all dues of the bank and cancellation of the limit.
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda Industrial Estate, Udhna Branch, Surat
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Teflon Coating Plant
• Dies
• Furnace
• Computer
• Electrical Installation

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.56.29
UK Pound	1	Rs.88.26
Euro	1	Rs.70.82

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.