MIRA INFORM REPORT

Report Date :

29.05.2013

IDENTIFICATION DETAILS

Name :	KALRA OVERSEAS AND PRECISION ENGINEERING LIMITED (w.e.f. 01.02.211)
Formerly Known As :	KALRA OVERSEAS LIMITED (w.e.f. 14.10.2010) KALRA OVERSEAS PRIVATE LIMITED
Registered Office :	Office No 411/412, City Point, Street No 17, Boat Club Road, Pune – 411001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.12.1998
Com. Reg. No.:	11-013147
Capital Investment / Paid-up Capital :	Rs.56.700 Millions
CIN No.: [Company Identification No.]	U28112PN1998PLC013147
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of forgings Semi Machined and fully Machined forgings, Components, Hydraulic cylinder connectors and parts.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 480000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The latest financials [2012] is not available. As per previous year’s record, the company is found normal for business dealings. Trade relations are fair. Business is active. Payment terms are unknown. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB+ (Long Term - Term Loan)
Rating Explanation	Moderate risk of default.
Date	March, 2013

Rating Agency Name	ICRA
Rating	A4+ (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March, 2013

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

Name :	Mr. Balram
Designation :	Sales Department
Contact No.:	91-9823031950
Date :	25.05.2013

LOCATIONS

Registered Office :	Office No 411/412, City Point, Street No 17, Boat Club Road, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-66011394
Mobile No.:	91-9823031950 (Mr. Balram)
Fax No.:	91-20-26123794
E-Mail :	cs@koplindia.com sales@kopindia.com
Website :	www.kopindia.com
Location :	Owned
Factory :	Chakan, Pune, Maharashtra, India

DIRECTORS

As on: 29.09.2012

Name :	Mrs. Tripti Harsh Kalra
Designation :	Whole-time director
Address :	F/10, Marigold Green Acres, Salunke Vihar Road, Pune - 411048, Maharashtra, India
Date of Birth/Age :	10.10.1973
Date of Appointment :	18.12.1998
DIN No.:	00052481
Name :	Mr. Harsh Krishanchander Kalra
Designation :	Managing director
Address :	F/10, Marigold Green Acres, Salunke Vihar Road, Pune - 411048, Maharashtra, India
Date of Birth/Age :	18.05.1968
Date of Appointment :	16.03.1999
DIN No.:	00055216
Name :	Mr. Sharadchandra Santu Darade Patil
Designation :	Director
Address :	70/9B, Swaramala, Karve Road, Pune – 411004, Maharashtra, India
Date of Birth/Age :	16.09.1940
Date of Appointment :	05.08.2010
DIN No.:	03166906
Name :	Mr. Jashan Balumal Chandani
Designation :	Additional director
Address :	B/Block,25/5, Jaibaba Market, Pimpri Colony, Pune 411017, Maharashtra, India
Date of Birth/Age :	26.03.1982
Date of Appointment :	12.10.2011
DIN No.:	03620841

KEY EXECUTIVES

Name :	Mrs. Bhavana Nilesh Rokade
Designation :	Secretary
Address :	Flat No. 606, Karan Tej Arista, Sr. No,112/1/77-90, (Mr. Sai Sayaji Nagar, Mumbai - Banglore Highway, Waraje, Pune 411052, Maharashtra, India
Date of Birth/Age :	26.03.1982
Date of Appointment :	15.03.2011
PAN No.:	AAWPU4507E

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Kalra Krishnachanper Kaushalya	105651
Kalra Harsh Tripti	2268700
Kalra Krishnachandar Harsh	3495600
Harsh Krishnachandar Kalra [HUF]	7
Kalra Harsh Sanjana [Through Natural Guardian Harsh Krishnachandar Kalra]	7
Kalra Harsh Raunaq [Through Natural Guardian Harsh Krishnachandar Kalra]	7
Seth Ram Swaroop Narendra	7
Seth Narendra Shashi	7
Khurana Sukhadayal Jawahar Lal	7
Taluja Ajit Singh Ranjeeta Kaur	7
Total	5870000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of forgings Semi Machined and fully Machined forgings, Components, Hydraulic cylinder connectors and parts.
Exports :
Products :	Finished Goods
Countries :	UK Germany Italy Singapore Europe Australia Newzealand
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

50 (Approximately)

Bankers :

• Union Bank of India, Pune, Maharashtra, India
• Small Industries Development Bank of India, SIDBI Tower, 15 Ashok Marg, Lucknow - 226001, Uttar Pradesh, India
• Union Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
TERMS LOANS FROM INSTITUTION
S.I.D.B.I. (WCTL and TL) (against hypothecation of Plant and Machinery )	15.093	15.343
Union Bank of India -Term Loan ( against hypothecation of Plant and Machinery)	22.195	0.000
Tata Motors Finance Limited - ( against Vehicle)	0.491	0.000
WORKING CAPITAL LOANS FROM BANKS - RUPEE LOANS
Union Bank of India - Bill Discounting ( against book debts)	11.442	0.000
Union Bank of India - Bill Discounting ( Packing Credit) (against stock, book debts)	29.951	15.551
Total	79.172	30.894

Banking Relations :	--
Auditors :
Name :	Uttam Abuwala and Company Chartered Accountants
Address :	Abuwala House 409/410, Gundecha Industrial Estate, Near Big Bazar Akurli Road, Kandivali (East) Mumbai – 400101, Maharashtra, India
Tel. No.:	91-22-28870069
Fax No.:	91-22- 28878000
E-Mail :	abuwaia@vsnl.net pamnani_ps@vsnl.net parnnani-ps@uttamabuwala.co.in
PAN No.:	AAAFU6583C
Subsidiaries :	Kalra Overseas FZE, UAE
Associates / Enterprises / Joint Ventures over which Key Management Personnel have significant Influences:	Mallikarjun Forging Private Limited Cardinal Info-services Private Limited Weber Hydraulic India Private Limited

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5870000	Equity Shares	Rs.10/- each	Rs.58.700 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5670000	Equity Shares	Rs.10/- each	Rs.56.700 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		56.700	7.500	7.500
2] Share Application Money		0.000	7.500	0.000
3] Reserves & Surplus		64.616	78.685	54.225
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		121.316	93.685	61.725
LOAN FUNDS
1] Secured Loans		79.172	30.894	21.758
2] Unsecured Loans		12.524	0.119	2.806
TOTAL BORROWING		91.696	31.013	24.564
DEFERRED TAX LIABILITIES		0.531	0.585	0.586
TOTAL		213.543	125.283	86.875
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.327	17.010	19.728
Capital work-in-progress		66.276	34.786	33.777
INVESTMENT		17.916	4.626	4.626
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.750	18.136	12.252
	Sundry Debtors	31.409	11.891	12.450
	Cash & Bank Balances	30.153	32.680	5.109
	Other Current Assets	0.000	0.000	1.406
	Loans & Advances	65.413	22.511	21.202
Total Current Assets		172.725	85.218	52.419
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.899	4.956	10.623
	Other Current Liabilities	40.512	0.239
	Provisions	17.091	12.857	13.052
Total Current Liabilities		63.502	18.052	23.675
Net Current Assets		109.223	67.166	28.744
MISCELLANEOUS EXPENSES		4.801	1.695	0.000
TOTAL		213.543	125.283	86.875

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	230.757	223.539	168.345
		Other Income	2.515	0.109	0.393
		Variation in Stock	27.212	5.791	(0.580)
		TOTAL (A)	260.484	229.439	168.158
Less	EXPENSES
		Manufacturing & Trading Expenses	207.231	184.477	134.031
		Operating and Administration Expenses	9.513	8.891
		TOTAL (B)	216.744	193.368	134.031
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		43.740	36.071	34.127
Less	FINANCIAL EXPENSES (D)		7.622	2.686	4.854
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		36.118	33.385	29.273
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.569	2.890	3.224
	PROFIT BEFORE TAX (E-F) (G)		33.549	30.495	26.049
Less	TAX (H)		3.895	4.384	2.581
	PROFIT AFTER TAX (G-H) (I)		29.654	26.111	23.468
Less	SHORT PROVISION OF TAX EARLIER YEAR		0.000	0.476	0.000
Less	PRIOR PERIOD EXPENSES		0.320	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.928	47.726	32.029
Less	APPROPRIATIONS
		Proposed Dividend	1.466	0.750	5.000
		Dividend Tax	0.238	0.900	0.424
		General Reserves	2.965	2.658	2.347
	BALANCE CARRIED TO THE B/S		45.593	69.528	47.726
	EARNINGS IN FOREIGN CURRENCY		105.026	59.021	141.922
	Earnings Per Share (Rs.)		24.31	34.81	31.29

Particulars	31.03.2012
Sales Turnover (Approximately)	230.000

The above information has been parted by Mr. Balram.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	11.38	11.38	13.96
Net Profit Margin (PBT/Sales)	(%)	14.54	13.64	15.47
Return on Total Assets (PBT/Total Assets}	(%)	17.84	29.83	36.11
Return on Investment (ROI) (PBT/Networth)		0.28	0.33	0.42
Debt Equity Ratio (Total Debt /Networth)		0.76	0.33	0.40
Current Ratio (Current Asset/Current Liability)		2.72	4.72	2.21

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	5.899	4.956	NA
Total	5.899	4.956	NA

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	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
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

OPERATIONS:

INDIAN INDUSTRY

FY 2010-11 has reaffirmed the strength in the global economic recovery. It is considered as year of consolidation after the recession of 2008-09. Several major developed economies had witnessed a fall in economic output. Most of these developed economies bounced back in 2010. The developing and emerging economies also witnessed higher growth in economic output of 7.1% in 2010 against 2.6% in 2009.

The Indian automobile industry continued to grow at a rapid pace in FY 10-201 1. The total automobile market, comprising passenger cars, utility vehicles and commercial vehicles, registered a growth of 28% in production. Driven by 38% growth in Medium and Heavy CVs, the total CV market grew by 33% in FY2011. This is one of the highest growth rates registered by CVs in India in the last decade. Further, given the increase in oil prices and interest rates one expects some slowdown in growth rates witnessed last year.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
From Director	6.873	0.000
Others	5.651	0.119
Total	12.524	0.119

FINANCIAL PERFORMANCE

There is a marginal increase in the sales. Profit before (PBT) increase by 10.02 % in comparison to earlier year ended on March 31, 2010. Sale for the year March 201 1 has shown marginal growth of 5% in compassion with the previous year March 2010 by achieving a Turnover of Rs. 235.002 Millions.

Since, the expansion is under way and the Management of the Company was occupied with augmentation of resources and development of new Products and Customers for the proposed enhanced facility resulting into meager increase the Revenue. In spite of this Earnings before Interest, Depreciation and Tax (EBIDTA) for the year has also depicted an increase of over 7.868 Millions as compared to previous year March 2010 by showing a growth of 21.26%

Overall, Company has been able to post stable results. The Company continues to successfully secure new business and growth opportunities in varied industrial sectors - automotive as well as non-automotive.

CAPACITY EXPANSION AND NEW PROJECTS

The management firmly believes that the company needs additional capacities due to increase pressure from Customers in terms of volume for existing supply and new products. For which the Land has been identified and for the complete Project funds have already been tied up with the Bank and Financial Institutions. The Management is glad to inform that the Company has decided to back ward integrate for additional line of activity i.e. forgings for which the funds will be raised through Share Capital, internal accruals and loans from Banks and Financial institutions.

FIXED ASSETS:

• Air Conditioner
• Office Interiors
• Security System
• Compute
• Motor Car
• Plant and Machinery
• Tools and Equipment

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.55.74
UK Pound	1	Rs.84.17
Euro	1	Rs.72.03

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.