MIRA INFORM REPORT

Report Date :

25.05.2012

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) :	31.03.2011
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.
No. of Employees:	25 (Approximately)

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 541788
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. Profitability of the company is under pressure. 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.

INFORMATION PARTED BY

Name :	Mr. Manriar
Designation :	Assistant Manager
Date :	25.05.2012

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 :	Owned
Factory :	8 Madhuban Dam Road, Rakholi, Silvassa Dadra Nagar and Haveli – 400 396
Location :	Owned

DIRECTORS

AS ON 30.09.2011

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
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
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
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

EQUITY SHARE AS ON 30.09.2011

Name Of Shareholder	No of Shares
Laddha R. Avinash	508930
Rathi R. Sanjay	1100
Pandit R. Mrunalini	100
Rathi R. Uma	100
Dhuldhoya N. Aayesha	100
Dhuldhoya N. Nimeesha	100
Laddha A. Rinku	1100
Soman B. Shrikar	2500
Sharma Ramgopal	25000
Khatod Hema	2000
Jhawar Sangeeta	1700
Jhawar Lalchand	800
Jhawar Narayan Gobind	25000
Maheshwari Narayan Prabhoo	25000
Kenjale Aba	2500
Shah R. Mehul	10000
Patel Jerambhai	2000
Bhattad G. Ramakaran	500
Ahmed Masood	15000
Shah Kishore	1000
Swadia K. Harbala	1250
Swadia K.Nimesh	1250
Shetty J. Sulochana	5000
Jain Hitendra	1000
Jain Shanta	500
Jain Deepesh	1000
Sariya Amrish	1000
Sariya Jayesh	1000
Sariya Rita	500
Laddha A. Alok	1000
Patel G. Harish	1000
Dowerah Jaya	2500
Jainarayan Sanjay	5000
Shukla K. Anand	2970
Kolhe V. Dilip	3000
Jain Chandubhai	7500
Mody Mohini	5000
Singhji M. Jetmal	5000
Singhji D. Madhosingh	5000
Singhji N.Hemendra	5000
Amroliwala K. Rashmikant	15000
Dhotre S. Sanjay	10000
Dhotre S. Diwakar	10000
Smt. Jaynarayan S. Alka	2500
Singh J. P.	5000
Shah A. Purnima	2500
Shah A. Anil	2500
Shah A. Raksha	2500
Shah M. Arun	2500
Navandar S. Vimal	1000
Fuletra J. Naran	2500
Fuletra J. Rameshbhai	2500
Agrawal K. L.	5000
Arora Ashok	1500
Smt. Arora Premkanta	1500
Arora Vijay	1500
Arora Ameesha	1500
Arora Sunita	1500
Arora Ramesh	1500
Bhuibhar R. Sudhakar	5000
Chowhan K. Dinesh	2500
Parmar H. Dilip	2500
Parmar D. Sarojben	2500
Thansing	5000
Oswal K. Kamal	137500
Oswal Nupur By N/G Oswal Prim	15000
Laddha A. Nila	52000
Satidham Industries Limited, Mumbai	5000
Rathi Krishnakant	1000
Rathi Rajendra	1000
Rathi Sushiladevi	1000
Bafna M. Pramila	196200
Bafna M. Mehul	247500
Bafna F. Mohanlal	525500
Bafna M. Rahul	155800
Laddha P. Sunita	2000
Laddha P. Kalpana	1000
Laddha R. Pushpa	1000
Laddha R. Mahendra	1000
Navandar S. Ashutosh	1000
Joshi K. Tanisha By N/G Joshi Ke'	1000
Joshi K. Snonita By N/G Joshi Ke	1000
Joshi R. Ketan	1000
Joshi K.Kokila	1000
Aasha Plastics Private Limited, Pune	5000
Primal Oswal	102500
Shah Sujata Snehalbhai and Shri Snehal Mahendrabhai Shah	2500
Renuka Primal Oswal	20000
Harbala K Swadia	1250
Padmaja M Swadia	1250
Kitec Investment Holdings Limited, Mauritius	7993400
Total	10243400

PREFERENCE SHARE AS ON 30.09.2011

Name Of Shareholder	No of Shares
Kitec Investment Holdings Limited., Mauritius	873900
Total	873900

AS ON :30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Foreign Holdings (FIIs / Fcs / FFIs / NRIs / OCBs)		78.03
Bodies corporate		0.05
Directors or relatives of directors		19.25
Other top fifty shareholders		2.48
Others		0.19
	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 :

· United Kingdom

· China

· United States of America

Terms :

Selling :

Cash, Credit (30 days, 60 days)

Purchasing :

Cash, Credit (30 days, 60 days)

PRODUCTION STATUS (As on : 31.03.2011):

Particulars	Unit	Installed Capacity	Actual Production
Multilayer Composite Pipes	Mio/Meters	7.180	2.624
PPR Pipes	In 000 Kgs	1.050	NIL
PVC Pipes	In 000 Kgs	1.400	33.561
HDPE Pipes	In 000 Kgs	NA	0.931

GENERAL INFORMATION

Customers :

· Wholesalers

· End Users

· Retailers

No. of Employees :

25 (Approximately)

Bankers :

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

· Axis Bank

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Rupee term loans banks secured	133.950	135.488
Total	133.950	135.488

Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Rupee term loans others unsecured	6.721	6.461
Total	6.721	6.461

Financial Institution:

Axis Trustee Services Limited, Axis House, 2^nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai - 400025, Maharashtra, India

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 :

(AS ON 31.03.2010)

Kitec Investment Holding Company Limited, Mauritius

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11150000	Equity Shares	Rs. 10/- each	Rs.111.500 millions
900000	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	Preferences Shares	Rs. 40/- each	Rs. 34.956 millions
		Total	Rs.137.390 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012
Sales Turnover (Approximately)	300.000

Expected Sales (2012-2013) : Rs.400.000 Millions

The above information has been parted by Mr. P R Manriar (Assistant Manager)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		137.390	137.390	137.390
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.786	0.201
4] (Accumulated Losses)		(1.943)	0.000	0.000
NETWORTH		135.447	138.176	137.591
LOAN FUNDS
1] Secured Loans		133.950	135.488	190.798
2] Unsecured Loans		6.721	6.461	6.989
TOTAL BORROWING		140.671	141.949	197.787
DEFERRED TAX LIABILITIES		2.641	0.000	0.000
TOTAL		278.759	280.125	335.378
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		179.654	201.583	158.893
Capital work-in-progress		4.373	3.000	0.000
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.912	46.212	37.725
	Sundry Debtors	45.005	35.271	25.426
	Cash & Bank Balances	28.077	44.227	119.904
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.372	20.450	36.633
Total Current Assets		150.366	146.160	219.688
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.601	38.945	14.138
	Current Liabilities	0.000	0.000	0.000
	Provisions	37.133	31.773	29.165
Total Current Liabilities		55.734	70.718	43.303
Net Current Assets		94.632	75.442	176.385
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		278.759	280.125	335.378

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	231.497	189.587	95.152
		Resale	0.000	0.000	82.806
		Other Income	2.461	9.913	12.726
		Profit on sale of fixed assets	0.000	0.000	0.000
		TOTAL (A)	233.958	199.500	190.684
Less	EXPENSES
		Consumption materials changes inventories	149.039	120.868	49.592
		Manufacturing service costs	7.831	6.331	0.000
		Contract cost	0.000	0.000	0.000
		Employee related expenses	10.161	8.975	0.000
		Administrative selling other expenses	38.317	37.048	0.000
		Cost of Resale	0.000	0.000	63.544
		Operation and Other Expenses	0.000	0.000	35.486
		Increase/(Decrease) in Finished Goods	0.000	0.000	2.918
		Increase/(Decrease) in excise duty on Finished Goods Stock	0.000	0.000	(1.063)
		Marketing Expenses	0.000	0.000	13.822
		TOTAL (B)	205.348	173.222	164.299
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		28.610	26.278	26.385
Less	FINANCIAL EXPENSES (D)		2.492	5.104	10.914
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.118	21.174	15.471
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.644	20.483	14.238
	PROFIT BEFORE TAX (E-F) (G)		(1.526)	0.691	1.233
Less	TAX (H)		1.203	0.107	(0.387)
	PROFIT AFTER TAX (G-H) (I)		(2.729)	0.584	0.846
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	0.201	1.502
Less	APPROPRIATIONS
		Proposed Dividend on Preference Shares	NA	0.000	1.835
		Tax on Dividend	NA	0.000	0.312
	BALANCE CARRIED TO THE B/S		(1.943)	0.785	0.201
	IMPORTS
		Raw Materials	NA	21.583	29.718
		Capital Goods	NA	2.815	0.000
		Spares	NA	0.568	0.000
		Others	NA	0.313	0.510
	TOTAL IMPORTS		NA	25.279	30.228
	Earnings Per Share (Rs.)		(0.48)	(0.15)	(0.13)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.17)	0.29	0.44
Net Profit Margin (PBT/Sales)	(%)	(0.66)	0.69	1.30
Return on Total Assets (PBT/Total Assets)	(%)	(0.46)	0.20	0.33
Return on Investment (ROI) (PBT/Networth)		(0.01)	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		1.45	1.54	1.75
Current Ratio (Current Asset/Current Liability)		2.70	2.07	5.07

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due small micro enterprises	6.991	9.079	6.853
Creditors due others	11.610	29.866	7.285
Total	18.601	38.944	14.138

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%	--
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)	Yes
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

PERFORMANCE REVIEW

During the year, the Company has achieved sales of Rs.243.962 Millions as against sales of Rs.198.220 Millions, registering an increase of about 23% over the previous year in spite of several challenges such as in terms of market and constantly increasing costs.

The sales of Subject company Composite pipes during the year have increased by 15% over the last year in quantity terms and by 22% in terms of value.

The increased awareness of composite pipes in market has prompted new entrepreneurs and importers to enter the market that has led to increased competition causing the pressure on selling prices. The Company is taking various steps to overcome the Competition.

EXPANSION AND FUTURE PLANS:

The Company has started the efforts to market the Company's products in the international markets and have exported two containers during the year. Further plans will be drawn based on response from the customers.

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 have edge over the competition.

FIXED ASSETS

· Land

· Compound wall

· Tube Well

· Building

· Mould

· Building

· Ownership Flats

· Furniture and Fixtures

· Plant and Machinery

· Office equipments

· Vehicles

·

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.56.28
UK Pound	1	Rs.88.25
Euro	1	Rs.70.81

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--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	YES
--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
-	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.