MIRA INFORM REPORT

Report Date :

29.08.2013

IDENTIFICATION DETAILS

Name :	KAIVALLI ELECTRONICS PRIVATE LIMITED
Registered Office :	P.N.163/A/1 and 163/B, Phase-II, IDA, Cherlapalli, Hyderabad – 500051, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.02.1984
Com. Reg. No.:	01-004501
Capital Investment / Paid-up Capital :	Rs. 0.800 Million
CIN No.: [Company Identification No.]	U32300AP1984PTC004501
TAN No.: [Tax Deduction & Collection Account No.]	HYDK01689C
PAN No.: [Permanent Account No.]	AABCK2809H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Power Supplies Transformer, Inverters, Converters, Adaptors etc.
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management has failed to file its financial with government department since 2010. As per the available financial of 2009-2010, the company has recorded a small scale of business operations, and has shown a better profitability compared to previous year. However, business is active. Payment terms are unknown. The company can be considered for business dealings with great 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Shyam S. Rao
Designation :	Supervisor/ Office Executive
Contact No.:	91-40-27262627
Date :	27.08.2013

LOCATIONS

Registered Office/ Factory :	P.N.163/A/1 and 163/B, Phase-II, IDA, Cherlapalli, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27262627/ 27262628
Fax No.:	91-40-27260110
E-Mail :	cs@mic.co.in

DIRECTORS

AS ON 30.09.2010

Name :

Inaganti Siva Prasad

Designation :

Managing director

Address :

10-B, Jeera, Secunderabad - 500003, Andhra Pradesh, India

Date of Birth/Age :

05.08.1954

Date of Appointment :

01.12.2009

DIN No.:

01952132

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U32300AP1984PTC004501	KAIVALLI ELECTRONICS PRIVATE LIMITED	Managing director	01/12/2009	01/02/1985	-	Active	NO
2	U24130AP1998PTC030559	VSN PLASTICS PRIVATE LIMITED	Director	25/01/1999	25/01/1999	15/06/2012	Active	NO

Name :

Bhavani Inaganti

Designation :

Director

Address :

10-B, Jeera, Secunderabad - 500003, Andhra Pradesh, India

Date of Birth/Age :

15.02.1985

Date of Appointment :

20.07.2009

DIN No.:

02716203

KEY EXECUTIVES

Name :	Mr. Shyam S. Rao
Designation :	Supervisor/ Office Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Inaganti Siva Prasad	6513
Sucharitha Inaganti	1025
Sushma B. Chaudhary	464
Total	8002

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	94.20
Other top fifty shareholders	5.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Power Supplies Transformer, Inverters, Converters, Adaptors etc.

Products/ Services :

ITC Code No.	Product Descriptions
8504.00	Power Supplies Transformers

Terms :

Selling :

Cash, Credit and Depend

Purchasing :

Cash, Credit and Depend

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Switch Mode Power Supplies	Not Applicable	2150	--
D.C. Linear Power Supplies	Not Applicable	12278	--
Inverters/ Converters	Not Applicable	1200	--
Transformers	Not Applicable	1062	--
Adopters	Not Applicable	--	643
Power Supplies	Not Applicable	--	27
Laminations	Not Applicable	--	2400
Sets LED Display Module	Not Applicable	--	05

GENERAL INFORMATION

Suppliers :

· Aditya Electronics

· AS Technologies (Private) Limited

· Cosmic Engg. Enterprise

· Digimax

· DMS technologies Private Limited

· Dies and Moulds Engineers (Private) Limited

· J.S. Engineering

· Variturn Electro Products (Private) Limited

· Icon Electrical and Electronics

· Micronet Technologies Limited

· MIC Electronics Limited

· SV Engg. Industries

· Swamy Plastics

· Vijaya Traders

· Vijetha Engineering

· Vinay Enterprises

· Vision Soldering Solutions

Customers :

Others

· MIC Electronics Limited

· Icomm Tele Limited

· Linkwell Telesystems Private Limited

· Aster Teleservices Private Limited

· Nanotech Electronics Private Limited

No. of Employees :

10 (Approximately)

Bankers :

UCO Bank, 62, M G Road, Secunderabad - 500003, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Secured Loans	1.800	1.962
Total	1.800	1.962

Banking Relations :	--
Auditors :
Name :	Subrahmanyam and Sivudu Chartered Accountants
Address :	#1-2-27, Gaganmahal Road, Domalguda, Hyderabad – 500027, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAGFS7351E

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,002	Equity Shares	Rs. 100/- each	Rs. 0.800 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.800	0.800	0.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.737	1.772	2.134
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.537	2.572	2.934
LOAN FUNDS
1] Secured Loans		1.800	1.962	3.841
2] Unsecured Loans		4.240	2.594	1.528
TOTAL BORROWING		6.040	4.556	5.369
DEFERRED TAX LIABILITIES		0.234	0.230	0.000
TOTAL		8.811	7.358	8.303
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.124	4.628	4.868
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.020
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	112.230	8.445	5.578
	Sundry Debtors	16.614	0.756	3.193
	Cash & Bank Balances	0.813	0.024	0.005
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.929	15.120	0.101
Total Current Assets		130.586	24.345	8.877
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	115.101	13.464	3.080
	Other Current Liabilities	10.478	7.657	2.000
	Provisions	0.320	0.494	0.382
Total Current Liabilities		125.899	21.615	5.462
Net Current Assets		4.687	2.730	3.415
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8.811	7.358	8.303

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	18.901	22.372
		Other Income	2.051	0.010
		TOTAL	20.952	22.382	8.796
Less	EXPENSES
		Cost of goods sold	16.513	16.686
		Salaries and Wages	2.517	3.063
		Jobwork and Fabrication	0.017	0.107
		Transport and Freight	0.147	0.017
		Rates and Taxes	0.130	0.058
		Bank charges	0.122	0.067
		Excise Duty	0.000	0.343
		Interest CC	0.276	0.421
		MD Remuneration	0.000	0.252
		Office maintenance	0.046	0.027
		Security Services	0.080	0.087
		Vehicle Maintenance	0.064	0.171
		Other Expenses	0.530	0.582
		TOTAL	20.442	21.881	8.038
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.510	0.501	0.758
Less/ Add	DEPRECIATION/ AMORTISATION		0.503	0.587	0.689
	PROFIT/ (LOSS) BEFORE TAX		0.007	(0.086)	0.069
Less	TAX		0.041	0.276	0.057
	PROFIT/ (LOSS) AFTER TAX		(0.034)	(0.362)	0.012
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.717	2.079	NA
	BALANCE CARRIED TO THE B/S		1.683	1.717	NA
	IMPORTS		0.661	0.000	0.542

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(0.16)	(1.62)	0.14
Net Profit Margin (PBT/Sales)	(%)	0.04	(0.38)	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.01	(0.30)	0.50
Return on Investment (ROI) (PBT/Networth)		0.00	(0.03)	0.02
Debt Equity Ratio (Total Debt/Networth)		2.38	1.77	1.83
Current Ratio (Current Asset/Current Liability)		1.04	1.13	1.63

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
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)	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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90130625	21/12/2011 *	40,000,000.00	UCO BANK	62, M G ROAD, SECUNDERABAD - 500003, ANDHRA PRADESH, INDIA	B27918713
2	90127510	27/02/1992	3,000,000.00	STATE BANK OF INDIA	SECUNDERABAD BRANCH, PATNY CIRCLE, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
3	90125479	02/01/2003 *	1,555,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
4	90129093	20/03/1985	1,555,000.00	STATE BANK OF INDIA	SECUNDERABAD BRANCH, PATNY CIRCLE, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
5	90125474	02/11/1994 *	1,555,000.00	STATE BANK OF INDIA	SECUNDERABAD BRANCH, PATNY CIRCLE, SECUNDERABAD, ANDHRA PRADESH, INDIA	-

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Unsecured Loans	4.240	2.594
Total	4.240	2.594

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office Equipments

· Generator

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 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 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. 68.36
UK Pound	1	Rs. 106.03
Euro	1	Rs. 91.47

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.