MIRA INFORM REPORT

Report Date :

14.11.2014

IDENTIFICATION DETAILS

Name :	KANAKIA RESIDENTIAL PRIVATE LIMITED

Registered Office :	215-Atrium, 10^th Floor, Opposite Divine School, JB Nagar, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	06.09.2010

Com. Reg. No.:	11-207453

Capital Investment / Paid-up Capital :	Rs.0.100 Million

CIN No.: [Company Identification No.]	U45400MH2010PTC207453

TAN No.: [Tax Deduction & Collection Account No.]	MUMK21839G

PAN No.: [Permanent Account No.]	AAECK1950C

Legal Form :	Private Limited Liability Company

Line of Business :	Construction Activity.

No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Exist

Comments :	Subject is an established company having moderate track record. Even though the company incorporated during the year 2010 the company is yet to commence its commercial operation. The company has recorded huge pre-operative expenses which has resulted into accumulated losses during 2013. Mr. Jitendra Mehta Chief Financial Officer denied to part any information about the company. As per Registrar of Companies the status of the company is shown as active. The company can be considered for business dealings on a secured trade terms and condition.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had illfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Not Available

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 DENIED BY

Name :	Mr. Jitendra Mehta
Designation :	Chief Financial Officer
Contact No.:	91-22-67266666
Date :	13.11.2014

LOCATIONS

Registered Office :	215-Atrium, 10^th Floor, Opposite Divine School, JB Nagar, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-67266666 / 67267777
Fax No.:	91-22-66937777
E-Mail :	rasmi.shah@kanakia.com jatin.shah@kanakia.com
Website :	www.kanakia.com

DIRECTORS

AS ON 28.09.2013

Name :	Mr. Rasesh Babubhai Kanakia
Designation :	Director
Address :	Ashish, Plot No.18, M. S. Road No.4,JVPD, Vile Parle (West), Mumbai – 400056, Maharashtra , India
Date of Birth/Age :	14.09.1961
Date of Appointment :	06.09.2010
DIN No.:	00015857

Name :	Mr. Himanshu Babubhai Kanakia
Designation :	Director
Address :	Vrusti Swastik, Plot 20, Road No.2, JVPD, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	01.01.1964
Date of Appointment :	06.09.2010
DIN No.:	00015908

KEY EXECUTIVES

Name :	Mr. Jitendra Mehta
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS

AS ON 28.09.2013

Names of Shareholders	No. of Shares	% of Holding
Centaur Mercantile Private Limited	9800	97.80
Rasesh Kanakia on Behalf of Centaur Mercantile Private Limited	100	1.00
Himanshu Kanakia on Behalf of Centaur Mercantile Private Limited	100	1.00
Heightlon Limited	10	0.10
Mr. and Mrs. M. Mehta Pension Scheme	10	0.10
Total	10020	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2013

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	0.20
Bodies corporate	99.80
Total	100.00

BUSINESS DETAILS

Line of Business :	Construction Activity.

Products :	Not Available

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :	Not Available

Imports :	Not Available

Terms :
Selling :	Not Available

Purchasing :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

A.J. Kanakia and Company
A1 Third Eye Security Private LimitedAarohi Sanitation
Ambica Enterprise
Gaikwad Constructions
B B Brothers
Darti Enterprise
Dipnal Valve and Tubestos Company
Law Point
Jay Enterprise
Maheshwari Enterprise
Minimax Ads Private Limited
Pinsas Corporation

Customers :

Not Available

No. of Employees :

Information declined by the management

Bankers :

Bank of Baroda
HDFC Bank Limited
ICICI Bank Limited

Facilities :

PARTICULARS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Heightion Limited	291.420	291.420
Mr. Madhoobhai Mehta and Mrs. Meenalben Mehta	258.645	258.645
Indostar Capital Finance Private Limited	700.000	0.000
Term loan – Srei Equipment Finance Private Limited	17.842	0.000
Other loans and advances	0.000	45.004

Short Term Borrowings
Loans and advances from related parties
Kanakia Spaces Private Limited	0.000	29.014
Kanakia Bhumi Construction Private Limited	19.820	0.000
Centaur Mercantile Private Limited	0.000	68.530

Total	1287.727	692.613


Banking Relations :	--

Financial Institution :	IL and FS Trust Company Limited, IL and FS Financial Centreplot No. C22 G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Auditors :
Name :	A.J. Kanakia and Company Chartered Accountants
Address :	1, Alankar, 251, Sion Main Road, Sion (West), Mumbai – 400022, Maharashtra, India
Tel. No.:	91-22-24070092 / 93
Fax No.:	91-22-24097878
PAN No.:	AAAFA2089B

Membership :	--

Ultimate Holding Company :	Kanakia Spaces Private Limited

Holding Company :	Centaur Mercantile Private Limited

Associates :	Kanakia Bhumi Construction Private Limited

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

10020	Equity Shares	Rs.10/- each	Rs.0.100 Million

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	0.100	0.100	0.100
(b) Reserves & Surplus	(17.734)	(0.099)	(0.007)
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(17.634)	0.001	0.093

(3) Non-Current Liabilities
(a) long-term borrowings	1267.907	595.069	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	466.636	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	1734.543	595.069	0.000

(4) Current Liabilities
(a) Short term borrowings	19.820	97.544	0.030
(b) Trade payables	499.554	0.547	0.003
(c) Other current liabilities	164.218	36.370	0.000
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	683.592	134.461	0.033

TOTAL	2400.501	729.531	0.126

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.184	0.000	0.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	389.914	406.324	0.000
Total Non-Current Assets	390.098	406.324	0.000

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1543.655	26.710	0.000
(c) Trade receivables	0.000	0.000	0.000
(d) Cash and cash equivalents	179.835	50.691	0.114
(e) Short-term loans and advances	286.913	245.806	0.000
(f) Other current assets	0.000	0.000	0.012
Total Current Assets	2010.403	323.207	0.126

TOTAL	2400.501	729.531	0.126

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.000	0.000	0.000
		TOTAL (A)	0.000	0.000	0.000

Less	EXPENSES
		Purchase of Stock-in-trade	69.438	0.000	0.000
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(298.915)	(26.710)	0.000
		Other Expenses	121.425	1.891	0.007
		TOTAL (B)	(108.052)	(24.819)	0.007

	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		108.052	24.819	(0.007)

Less	FINANCIAL EXPENSES (D)		125.650	24.911	0.000

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(17.598)	(0.092)	(0.007)

Less	DEPRECIATION/ AMORTISATION (F)		0.037	0.000	0.000

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(17.635)	(0.092)	(0.007)

Less	TAX (H)		0.000	0.000	0.000

	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(17.635)	(0.092)	(0.007)

	Earnings/(Loss) Per Share (Rs.)		(1759.96)	(9.16)	(0.73)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin PAT / Sales	(%)	0.00	0.00	0.00

Operating Profit Margin (PBDIT/Sales)	(%)	0.00	0.00	0.00

Return on Total Assets (PBT/Total Assets}	(%)	(0.73)	(0.01)	(5.56)

Return on Investment (ROI) (PBT/Networth)		1.00	(92.00)	(0.08)

Debt Equity Ratio (Total Debt /Networth)		(73.03)	692613.00	0.32

Current Ratio (Current Asset/Current Liability)		2.94	2.40	3.82

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	0.100	0.100	0.100
Reserves & Surplus	(0.007)	(0.099)	(17.734)
Net worth	0.093	0.001	(17.634)

long-term borrowings	0.000	595.069	1267.907
Short term borrowings	0.030	97.544	19.820
Total borrowings	0.030	692.613	1287.727
Debt/Equity ratio	0.323	692,613.000	(73.025)

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT DETAILS NOT AVAILABLE

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	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	Yes
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	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	No

NOTE: Registered address of the company has been shifted from 5^th Floor, 349 Business Point, Western Express Highway, Andheri (East), Mumbai – 400069, Maharashtra, India to the present address w.e.f. 20.09.2010

INDEX OF CHARGE:

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

10385908

12/10/2012 *

20,000,000.00

SREI EQUIPMENT FINANCE PRIVATE LIMITED

'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BENGAL - 700046, INDIA

B63569479

10385910

12/10/2012

71,445,167.00

SREI EQUIPMENT FINANCE PRIVATE LIMITED

'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, WEST BENGAL - 700046, INDIA

B63559223

*Date of modification Charges

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.61.48
UK Pound	1	Rs.97.92
Euro	1	Rs.76.79

INFORMATION DETAILS

Information Gathered by :	SVA

Analysis Done by :	DIV

Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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		12

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.

MIRA INFORM REPORT

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