MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	KANUNGA EXTRUSION PRIVATE LIMITED
Registered Office :	No.42, N. R. Road, Bangalore, Bangalore – 560002, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.08.1998
Com. Reg. No.:	08-024082
Capital Investment / Paid-up Capital :	Rs. 23.930 Millions
CIN No.: [Company Identification No.]	U27105KA1998PTC024082
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACK8268M
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor of Iron and Steel.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its financial. With government department for the year 2014. As per available financial record of 2013, the rating is constrained on account company’s below operational performance marked by stretched financial risk profile and thin profitability margins of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	ICRA
Rating	Long Term Limits = B+ (Suspended)
Rating Explanation	Risk prone credit quality and carries very high credit risk.
Date	April 2014

Reason for Suspended: Absence of the requisite information from company.

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Laxman
Designation :	Not Divulged
Contact No.:	91-98886222443
Date :	22.12.2014

LOCATIONS

Registered Office :	No.42, N. R. Road, Bangalore, Bangalore – 560002, Karnataka, India
Tel. No.:	91-80-22109341
Mobile No.:	91-9886222443 (Mr. Laxman) 91-9986029859 (Mr. Niraml)
Fax No.:	Not Available
E-Mail :	kepl1979@gmail.com
Branch 1 :	Karur, Tamilnadu, India
Branch 2 :	Hyderabad, Telangana, India

DIRECTORS

As on 28.09.2013

Name :

Mr. Ranjeet Kanunga

Designation :

Managing Director

Address :

No.90, R. V. Road, Govindappa Lane, Basavanagudi, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

03.04.1958

Date of Appointment :

14.08.1998

DIN No.:

00877517

PAN No.:

AAQPK6807M

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	U27105KA1998PTC024082	KANUNGA EXTRUSION PRIVATE LIMITED	Managing director	14/08/1998	14/08/1998	-	Active	NO
2	U51109WB2007PTC119424	SHIVAM SUPPLIERS PRIVATE LIMITED.	Director	24/07/2009	24/07/2009	-	Active	NO
3	U67120KA2011PTC056752	CATALYTIC INVESTMENT AND HOLDINGS PRIVATE LIMITED	Director	21/01/2011	21/01/2011	-	Active	NO
4	U27109KA2011PTC058933	INTERNATIONAL TUBES INDIA PRIVATE LIMITED	Additional director	20/08/2013	20/08/2013	-	Active	NO

Name :

Mr. Jitendra Kanunga

Designation :

Director

Address :

No.90, R. V. Road, Govindappa Lane, Basavanagudi, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

21.08.1984

Date of Appointment :

01.07.2004

DIN No.:

00877586

PAN No.:

AJYPK6026F

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	U27105KA1998PTC024082	KANUNGA EXTRUSION PRIVATE LIMITED	Director	01/07/2004	01/07/2004	-	Active	NO
2	U51109WB2007PTC119424	SHIVAM SUPPLIERS PRIVATE LIMITED.	Director	24/07/2009	24/07/2009	-	Active	NO
3	U67120KA2011PTC056752	CATALYTIC INVESTMENT AND HOLDINGS PRIVATE LIMITED	Director	21/01/2011	21/01/2011	-	Active	NO
4	U29253KA2003PTC032118	SKF BOILERS AND DRIERS PRIVATE LIMITED	Whole-time director	09/02/2011	09/02/2011	-	Active	NO
5	U27109KA2011PTC058933	INTERNATIONAL TUBES INDIA PRIVATE LIMITED	Additional director	20/08/2013	20/08/2013	-	Active	NO

Name :

Ms. Leela Kanunga

Designation :

00877633

Address :

No.90, R. V. Road, Govindappa Lane, Basavanagudi, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

16.10.1962

Date of Appointment :

14.08.1998

DIN No.:

00877633

PAN No.:

AAQPK6806L

KEY EXECUTIVES

Name :	Ganapathi and Mohan
Designation :	Company Secretary
Address :	No.118, Police Station Road, Basavanagudi, Bangalore - 560 004, Karnataka, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

SHAREHOLDER DETAILS FILE ATTACHED

As on 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	10.44
Directors or relatives of Directors	89.56
Total	100.00

BUSINESS DETAILS

Line of Business :	Distributor of Iron and Steel.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :
Products :	Iron and Steel
Countries :	Japan
Terms :
Selling :	L\C, Cheque and Credit
Purchasing :	L\C, Cheque and Credit

GENERAL INFORMATION

Suppliers :

Reference :	JWS Steel Limited
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

40 (Approximately)

Bankers :

Banker Name	ING VYSYA BANK LIMITED
Branch Address	489, Avenue Road, Bangalore - 560002, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2013	As on 31.03.2014
Long Term Borrowing
Rupee term loans from banks	0.000	0.314
Short Term Borrowing
Rupee term loans from banks	206.620	215.288
Total	206.620	215.602

Auditors :
Name :	G. R. V. and P. K. Chartered Accountant
Address :	No.205, 2^nd Floor, Jala Shambhavi Complex, 1^st Main, Gandhinagar, Bangalore – 560009, Karnataka, India
PAN No.:	AACFG7569A
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern :	Kanunga INC, India
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Shivam Suppliers Private Limited, India CIN No.: U51109wb2007ptc119424

CAPITAL STRUCTURE

As on 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.100/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
239300	Equity Shares	Rs.100/- each	Rs. 23.930 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	23.930	23.930	21.430
(b) Reserves & Surplus	236.361	234.815	132.853
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	100.600	100.600	60.000
Total Shareholders’ Funds (1) + (2)	360.891	359.345	214.283
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	49.530	18.852
(b) Deferred tax liabilities (Net)	0.000	0.000	-0.043
(c) Other long term liabilities	0.000	0.000	1.660
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.000	49.530	20.469
(4) Current Liabilities
(a) Short term borrowings	279.085	215.588	210.009
(b) Trade payables	42.358	48.863	38.489
(c) Other current liabilities	6.214	4.534	9.148
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	327.657	268.985	257.646
TOTAL	688.548	677.860	492.398
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	26.905	10.871	11.227
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	3.274
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.074	0.074	0.000
(d) Long-term Loan and Advances	0.405	3.576	3.819
(e) Other Non-current assets	3.886	4.089	0.000
Total Non-Current Assets	31.270	18.610	18.320
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	69.657	70.845	14.365
(c) Trade receivables	584.708	585.653	452.472
(d) Cash and cash equivalents	1.008	0.406	0.435
(e) Short-term loans and advances	1.723	2.346	6.806
(f) Other current assets	0.182	0.000	0.000
Total Current Assets	657.278	659.250	474.078
TOTAL	688.548	677.860	492.398

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	TOTAL INCOME	1170.009	1419.222	1257.018
Less	EXPENSES	1165.595	1411.649	1249.829
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	4.414	7.573	7.189
Less/ Add	DEPRECIATION/ AMORTISATION	1.894	1.050	1.186
	PROFIT/ (LOSS) BEFORE TAX	2.520	6.523	6.003
Less	TAX	0.940	2.036	1.878
	PROFIT/ (LOSS) AFTER TAX	1.580	4.487	4.125
	Earnings Per Share (Rs.)	6.60	18.75	17.24

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	0.37	0.96	1.23
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	0.03
Debt Equity Ratio (Total Debt /Networth)		0.77	0.74	1.07
Current Ratio (Current Asset/Current Liability)		2.01	2.45	1.84

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	21.430	23.930	23.930
Reserves & Surplus	132.853	234.815	236.361
Share Application money pending allotment	60.000	100.600	100.600
Net worth	214.283	359.345	360.891
long-term borrowings	18.852	49.530	0.000
Short term borrowings	210.009	215.588	279.085
Total borrowings	228.861	265.118	279.085
Debt/Equity ratio	1.068	0.738	0.773

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1257.018	1419.222	1170.009
		12.904	(17.560)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1257.018	1419.222	1170.009
Profit	4.125	4.487	1.580
	0.33%	0.32%	0.14%

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	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	Yes
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Loans and advances from related parties	0.000	49.216
Short Term Borrowing
Loans and advances from related parties	72.465	0.000
Total	72.465	49.216

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	ADDRESS	Service Request Number (SRN)
1	10485382	18/02/2014	200,000,000.00	ING VYSYA BANK LIMITED	489, AVENUE ROAD, BANGALORE, KARNATAKA - 560002, INDIA	C00649624
2	90197474	24/05/2013 *	220,000,000.00	STATE BANK OF INDIA	SPECIALISED MID-CORPORATE BRANCH, NO.136, RAILWAY PARALLEL ROAD, KUMARAPARK WEST, BANGALORE, KARNAT AKA - 560020, INDIA	B78700176
3	90200325	02/03/2005 *	10,000,000.00	STATE BANK OF INDIA	BANGALORE CITY BRANCH, J. C. ROAD, BANGALORE, KAR NATAKA - 560002, INDIA	-

* Date of charge modification

REVIEW OF OPERATION

During the financial year the Company has recorded a sale of Rs.1170.009 Millions as against the previous year sales of Rs.1418.993 Millions by showing a growth over the previous financial year. Due to increased sales, the Company has incurred a profit of Rs.1.545 Millions against the net profit of Rs. 4.487 Millions over the corresponding previous year.

OPERATION

The Company is expanding its operations in the field of dealership in ferrous and non- ferrous metals and has done good business during the year, hope to do a better business in the coming years.

FIXED ASSETS

• Land
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer Equipments

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.63.63
UK Pound	1	Rs.98.97
Euro	1	Rs.77.74

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.