MIRA INFORM REPORT

Report Date :

14.05.2013

IDENTIFICATION DETAILS

Name :	KIRBY BUILDING SYSTEMS INDIA LIMITED
Registered Office :	Plot No. 8-15, Phase - III, IDA Phashamyalaram, Medak District – 502 307, Andhra Pradesh
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	20.07.1998
Com. Reg. No.:	01-029787
Capital Investment / Paid-up Capital :	Rs.517.079 millions
CIN No.: [Company Identification No.]	U28100AP1998PLC029787
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacture and construction of Pre-Engineered Building Systems and also engaged providing designing, drafting and engineering services for construction of Pre-Engineered Buildings.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 6400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank Facilities: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	October 2012

Rating Agency Name	CARE
Rating	Short term Bank Facilities: A2
Rating Explanation	Strong degree of safety and very low credit risk
Date	October 2012

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.

LOCATIONS

Registered Office Corporate Office / Factory 1/ India Storage Solution :

Plot No. 8-15, Phase - III, IDA Phashamyalaram, Medak District – 502307, Andhra Pradesh, India

Tel. No.:

91-8455-224401-4 / 226901

Fax No.:

91-8455-224419 / 226911 / 224427/ 226887

E-Mail :

kirby@kirby-india.com

najayababu@kirby-india.com

Website :

www.kirby-india.com

Factory 2 :

F No. 2A, 3-6-131, Rukmini Enclave, Hyderabad- 500 029, Andhra Pradesh, India

Factory 3 :

Plot 2, Sector 11, Integrated Industrial Estate, Haridwar – 249403, Uttaranchal, India

Region Office:

Located at

Delhi	Haridwar	Chandugarh	Noida	Pantnagar
Jaipur	Bhopal	Indore	Chennai	Coimbatore
Madurai	Cochin	Bangalore	Bellary	Hyderabad
Vizag	Kakinada	Kolkata	Bhubaneshwar	Jamshedpur
Mumbai	Pune	Kolhapur	Goa	Baroda
Ahmedabad	Gandhidham	Vapi

DIRECTORS

As on 29.06.2012

Name :

Mr. Thomas Samuel

Designation :

Director

Address :

Athi Nilkunnathil, Hill Villa Edapally, Cochin – 682 024, Kerala, India

Date of Birth/Age :

16.09.1945

Date of Appointment :

01.10.2005

DIN No.:

00586609

Name :

Mr. Urfan Sharif

Designation :

Director

Address :

Block 2, Street 79, Building 82, BNELD-AL-GAR, Safat, Kuwait 13003

Date of Birth/Age :

06.09.1970

Date of Appointment :

25.05.2010

DIN No.:

03088991

Name :

Mr. Robert H A Farrow

Designation :

Additional Director

Address :

House 19 B, Plot 285, Building 4, Street 1, Mishref, Kuwait 13003

Date of Birth/Age :

02.07.1957

Date of Appointment :

25.05.2010

DIN No.:

03090416

Name :

Mr. Dodle Raju

Designation :

Managing Director

Address :

Flat No. 201, C Block, landmark Residence, Madinaguda, Hyderabad – 500 049, Andhra Pradesh, India

Date of Birth/Age :

10.08.1957

Date of Appointment :

01.12.2011

DIN No.:

02579249

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	U51432DL2004PTC124408	KIRBY CONSTRUCTION COMPANY PRIVATE LIMITED	Director	16/03/2009	16/03/2009	-	Strike off	NO
2	U28100AP1998PLC029787	KIRBY BUILDING SYSTEMS INDIA LIMITED	Managing director	01/12/2011	31/03/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nandamuri Ajaya Babu
Designation :	Secretary
Address :	108, Mahalakshmi Estates, Block B, Nizampet, Kukatpally, Hyderabad – 500 085, Andhra Pradesh, India
Date of Birth/Age :	16.06.1962
Date of Appointment :	01.05.2006
PAN No.:	AAMPN7001N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.06.2012

Names of (Equity) Shareholders	No. of Shares
Alghanim Industries Mauritius Limited, Mauritius	39999940
Alghanim Yousuf Kutayba	10
Alghanim Bassam	10
Alghanim K Omar	10
Alghanim K Waleed	10
Alghanim K Samar	10
Alghanim Industries WLL, Kuwait	10
Total	40000000

Names of (Preference) Shareholders	No. of Shares
Alghanim Industries Mauritius Limited, Mauritius	1170790
Total	1170790

Equity Share Break up (Percentage of Total Equity)

As on 29.06.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacture and construction of Pre-Engineered Building Systems and also engaged providing designing, drafting and engineering services for construction of Pre-Engineered Buildings.

PRODUCTION STATUS (As on 31.12.2011)

Particulars	Installed Capacity **	Actual Production
Pre Engineered Buildings	115000	54,387*

* * Includes work-in-process of 4,730 MT

** As certified by the Management.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited, Credit Management Centre, 5-2-183/184, 8751(Old), 3^rd Floor, R P Road, Secunderabad – 500 003, Andhra Pradesh, India

· State Bank of Hyderabad, ICRISAT Branch, Patancheru, Medak District – 502 319, Andhra Pradesh, India

· ICICI Bank Limited

· State Bank of India, Commercial Branch, Mid Corporate Group, Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India

· Punjab National Bank

Facilities :

Secured Loan	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. in Millions)
Rupee term loans banks secured	131.537	260.644
Working capital loans banks secured	13.592	19.694
Total	145.129	280.338

Banking Relations :
Auditors :
Name :	S R Batliboi and Associates Chartered Accountants
Address :	Oval Office, 18, iLabs Centre, Hitech City, Madhapur, Hyderabad – 500 081, Andhra Pradesh, India
Tel. No.:	91-40-67362000
Fax No.:	91-40-67362200
PAN No.:	AABFS3421N
Ultimate Holding company:	Almana Industries SAK
Intermediate Holding Company:	Kuwait Insulating Material Manufacturing Company S.A.K
Immediate Holding Company:	Alghanim Industries (Mauritius) Limited
Fellow subsidiary:	Rockwool India Limited Kirby Building Systems(Uttaranchal) India Private Limited
Enterprise over which Major shareholder of reporting enterprise exercise significant influence:	Kirby Building Systems Kuwait S.A.K. Kirby Building Systems - (UAE) L.L.C Yusuf A.Alghanim and Sons W.L.L Kirby South East Asia Kirby Construction Company Private Limited Kirby International PTE Limited

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
88000000	Equity Shares	Rs.10/- each	Rs.880.000 millions
1200000	Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.120.000 millions
	Total		Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 millions
1170790	5% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.117.079 millions
	Total		Rs.517.079 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		517.079	517.079	317.079
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1077.543	997.478	488.585
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1594.622	1514.557	805.664
LOAN FUNDS
1] Secured Loans		145.129	280.338	688.757
2] Unsecured Loans		35.852	111.818	361.351
TOTAL BORROWING		180.981	392.156	1050.108
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1775.603	1906.713	1855.772
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		831.211	911.213	1009.463
Capital work-in-progress		0.437	0.050	6.542
INVESTMENT		0.011	0.011	0.011
DEFERREX TAX ASSETS		221.058	275.102	223.190
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	764.248	754.754	805.946
	Sundry Debtors	825.549	918.893	392.659
	Cash & Bank Balances	204.812	347.028	80.461
	Other Current Assets	746.096	261.874	446.685
	Loans & Advances	639.616	574.593	875.941
Total Current Assets		3180.321	2857.142	2601.692
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	490.219	595.926	811.208
	Other Current Liabilities	1761.993	1335.490	1017.932
	Provisions	205.222	205.389	155.986
Total Current Liabilities		2457.434	2136.805	1985.126
Net Current Assets		722.887	720.337	616.566
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1775.603	1906.713	1855.772

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	4221.722	3333.371	4417.803
		Other Income	134.148	303.771	143.546
		TOTAL (A)	4355.870	3637.142	4561.349
Less	EXPENSES
		Consumption materials changes inventories	2773.078	2292.116
		Manufacturing service costs	432.360	296.115
		Employee related expenses	489.486	429.158
		Administrative selling other expenses	375.880	334.202
		TOTAL (B)	4070.804	3351.591	4735.282
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		285.066	285.551	(173.933)
Less	FINANCIAL EXPENSES (D)		56.864	79.590	185.787
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		228.202	205.961	(359.720)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		87.394	108.622	106.999
	PROFIT/LOSS BEFORE TAX (E-F) (G)		140.808	97.339	(466.719)
Less	TAX (H)		57.338	(51.913)	(99.160)
	PROFIT/LOSS AFTER TAX (G-H) (I)		83.470	149.252	(367.559)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		373.982	224.730	592.289
	BALANCE CARRIED TO THE B/S		457.452	373.982	224.730
	EARNINGS IN FOREIGN CURRENCY
		Service income	43.480	26.981	30.360
		Export sales	29.924	10.720	0.000
		Sale of raw materials	0.000	10.376	13.235
	TOTAL EARNINGS		73.404	48.077	43.595
	IMPORTS
		Raw Materials	3.927	26.859	333.515
		Accessories	31.859	7.831	18.803
		Stores & Spares	18.288	18.264	28.489
		Capital Goods	1.736	0.000	5.890
	TOTAL IMPORTS		55.810	52.954	386.697
	Earnings Per Share (Rs.)
	Basic		0.19	0.60	(18.69)
	Diluted		0.19	0.58	(18.69)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	1.92	4.10	(8.06)
Net Profit Margin (PBT/Sales)	(%)	3.34	2.96	(10.71)
Return on Total Assets (PBT/Total Assets}	(%)	4.43	2.58	(12.92)
Return on Investment (ROI) (PBT/Networth)		0.09	0.06	(0.58)
Debt Equity Ratio (Total Debt /Networth)		0.11	0.26	1.30
Current Ratio (Current Asset/Current Liability)		1.29	1.34	1.31

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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	Yes

UNSECURED LOAN

PARTICULARS	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. in Millions)
Deferred sales tax loan unsecured	35.852	82.024
Other debt unsecured	0.000	29.794
Total	35.852	111.818

NATURE OF OPERATIONS:

The Company is engaged in the business of manufacture and construction of Pre-Engineered Building Systems. Also, the Company provides designing, drafting and engineering services for construction of Pre-Engineered Buildings.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28100AP1998PLC029787
Name of the company	KIRBY BUILDING SYSTEMS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 8-15, Phase - III, IDA Phashamyalaram, Medak District – 502 307, Andhra Pradesh, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10110039
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	State Bank of India, Commercial Branch, Mid Corporate Group, Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India
Nature of instrument creating charge	1) Letter regarding the grant of Individual Limits within the overall Limit. (Form C.5)
Date of instrument Creating the charge	28.03.2013
Amount secured by the charge	Rs.470.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: At 4.25% above Base Rate at monthly rests after factoring concession for external rating. Terms of Repayment Working Capital: on demand. Margin 1) Raw Materials (Domestic & Imported) - 25% 2) Stock-in-process - 25% 3) Finished Goods - 25% 4) Receivables (Cover period - 90 days) - 25% 5) Bank Guarantee - 2.50% * (*Margin for disputed liabilities =100%) 6) Letter of Credit - 2.5% Extent and Operation of the charge The charge operates as security, inter alia, for the due repayment by the company to the State Bank of India, Commercial Branch, Hyderabad for its limits sanctioned to the extent of Rs.470.000 Millions, together with interest, additional interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, charges, expenses and all other moneys payable by the Company to State Bank of India, Commercial Branch, Hyderabad on pari passu basis with other bankers.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	There is no change in the security already registered.
Date of instrument modifying the charge	08.05.2012
Particulars of the present modification	The existing overall limits ofRs.550.000 Millions is revised to Rs.470.000 Millions. The details of the individual limits are as under: 01) Cash Credit - Rs. 60.000 Millions 02) Forward Contract/ Derivative Limit - Rs. 10.000 Millions 03) Letters of Credit- Rs. 220.000 Millions 04) Bank Guarantee - Rs. 180.000 Millions Total - Rs. 470.000 Millions.

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.54.91
UK Pound	1	Rs.84.44
Euro	1	Rs.71.31

INFORMATION DETAILS

Report Prepared by :

KVT

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.