MIRA INFORM REPORT

Report Date :

26.11.2014

IDENTIFICATION DETAILS

Name :	KONE ELEVATOR INDIA PRIVATE LIMITED (w.e.f. 01.06.1990)
Formerly Known As :	BEACON KONE LIMITED
Registered Office :	50 / 55 and 58, Vanagaram Road, Ayanambakkam, Chennai – 600095, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.06.1984
Com. Reg. No.:	18-010913
Capital Investment / Paid-up Capital :	Rs. 349.000 Millions
CIN No.: [Company Identification No.]	U29141TN1984FTC010913
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	CHEB00075F
PAN No.: [Permanent Account No.]	AAACK2567P
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing, supply, installation and commissioning of new elevators, supply, installation and commissioning of new escalators, maintenance, servicing and modernization of existing elevators and escalators and is also engaged in rendering software services to the group companies.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Fundamentals of the company is decent. Financial position of the company is strong and healthy. Trade relations reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for business dealing 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

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 wilfully 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

Rating Agency Name	ICRA
Rating	Non fund based facilities AA+
Rating Explanation	High degree of safety and low credit risk.
Date	December 2013

Rating Agency Name	ICRA
Rating	Fund based facilities A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	December 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 31-03-2014.

INFORMATION DECLINED

Management Non Cooperative (91-44-66254000)

LOCATIONS

Registered Office :	50 / 55 and 58, Vanagaram Road, Ayanambakkam, Chennai – 600095, Tamilnadu, India
Tel. No. :	91-44-26533901 / 26533902 / 903 / 904 / 905 / 906
Fax No. :	91-44-26533912
E-Mail :	c.v.s.krishnakumar@KONE.com
Website :	http://www.KONE.in

DIRECTORS

As on 31.03.2014

Name :

Mr. Klaus Thomas Cawen

Designation :

Director

Address :

Kuninkaanniemi, 10 B ESPOO, Finland 02160

Date of Birth/Age :

21.05.1957

Date of Appointment :

09.01.2009

DIN No.:

02417329

Name :

Mr. Arnoldus Ludovicus Josephus Veeger

Designation :

Director

Address :

Fox Hollow St. Marys Road, Ascot Brekshire, United Kingdom SL59AX

Date of Birth/Age :

16.04.1961

Date of Appointment :

11.02.2011

DIN No.:

03414247

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	U29141TN1984FTC010913	KONE ELEVATOR INDIA PRIVATE LIMITED	Director	11/02/2011	11/02/2011	-	Active	NO
2	U29150TN2004PTC075704	OLYMPUS ELEVATOR PRIVATE LIMITED	Additional director	09/03/2011	09/03/2011	-	Amalgamated	NO

Name :

Chittatoorveeravalli Seshadri Krishnakumar

Designation :

Whole-time Director

Address :

99, SRP Colony, Third Street, Chennai 600082, Tamilnadu, India

Date of Birth/Age :

21.03.1965

Date of Appointment :

13.09.2013

DIN No.:

06652406

Name :

CVS Krishnakumar

Designation :

Whole time Director

Address :

99, SRP Colony, Third Street, Chennai 600082, Tamilnadu, India

Date of Birth/Age :

21.03.1965

Date of Appointment :

29.08.2013

KEY EXECUTIVES

Name :	Mr. Chittatoor Veeravalli Seshadri Krishnakumar
Designation :	Company Secretary
Address :	99, SRP Colony, Third Street, Chennai 600082, Tamilnadu, India
Date of Birth/Age :	21.03.1965
Date of Appointment :	27.02.2007
PAN No.:	AAYPK6368D

MAJOR SHAREHOLDERS

As on 31.03.2014

Names of Shareholders	No. of Shares
KONE OY, Finland	34946961
KONE Capital Corporation, Finland	234
Total	34947195

As on 31.03.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
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 manufacturing, supply, installation and commissioning of new elevators, supply, installation and commissioning of new escalators, maintenance, servicing and modernization of existing elevators and escalators and is also engaged in rendering software services to the group companies.

Products :

Item Code No. (ITC Code)	Product Description
84313100	Parts of Lifts, Skip / Hoists / Escalators

Brand Names :

Not divulged

Agencies Held :

Not divulged

Exports :

Not divulged

Imports :

Not divulged

GENERAL INFORMATION

Suppliers :	Not divulged
Customers :	Not divulged
No. of Employees :	Information declined by the management
Bankers :	· Standard Chartered Bank, No. 19, Rajaji Salai, Chennai – 600001, Tamilnadu, India

Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	14 Block, EP, Sector V, Salt Lake Electronics Complex Bidhan Nagar Kolkata – 700091, West Bengal, India
PAN No. :	AADFP9359C
Holding Company :	· KONE OY, Finland
Fellow subsidiaries :
	· KONE OYJ, Finland · KONE Industrial Oy, Finland · KONE Telc Industries company Limited, China · KONE SSC s.r.o., Slovakia · KONE PTE. Limited, Singapore · KONE Inc. (Canada), Canada · Simpa S.R.L., Italy · KONE Elevators Company Limited, China · KONE Elevators (HK) Limited, Hong Kong · KONE Thai Lift Public Company Limited, Thailand · KONE Elevators Pty Limited, Australia · KONE Hissit Oy, Finland · KONE Elevators South Africa (PTY) Limited, South Africa · KONE (Ireland) Limited, Ireland · KONE Middle East Lcc, United Arab Emirates · KONE Inc. (USA), United States · KONE Industrial S.A. de C.V., Mexico · KONE Plc., Slovakia · KONE Industrial SPA, Italy

CAPITAL STRUCTURE

After 13.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
92760000	Equity Shares	Rs.10/- each	Rs.927.600 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34947195	Equity Shares	Rs.10/- each	Rs.349.472 Millions

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
92800000	Equity Shares	Rs.10/- each	Rs. 928.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34900000	Equity Shares	Rs.10/- each	Rs. 349.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.12.2011
	(12 Months)	(15 Months)
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	349.000	149.000	149.000
(b) Reserves & Surplus	831.000	862.000	704.000
(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)	1180.000	1011.000	853.000
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	92.000	29.000	22.000
Total Non-current Liabilities (3)	92.000	29.000	22.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	975.000	1256.000	1023.000
(c) Other current liabilities	11198.000	8540.000	6865.000
(d) Short-term provisions	696.000	687.000	832.000
Total Current Liabilities (4)	12869.000	10483.000	8720.000
TOTAL	14141.000	11523.000	9595.000
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	872.000	844.000	727.000
(ii) Intangible Assets	8.000	70.000	145.000
(iii) Capital work-in-progress	30.000	11.000	14.000
(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)	210.000	165.000	133.000
(d) Long-term Loan and Advances	153.000	105.000	82.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1273.000	1195.000	1101.000
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	7384.000	6161.000	4695.000
(c) Trade receivables	785.000	735.000	735.000
(d) Cash and cash equivalents	3506.000	2465.000	2051.000
(e) Short-term loans and advances	1099.000	895.000	934.000
(f) Other current assets	94.000	72.000	79.000
Total Current Assets	12868.000	10328.000	8494.000
TOTAL	14141.000	11523.000	9595.000

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.12.2011
		(12 Months)	(15 Months)
	SALES
	Income
	Other Income
	TOTAL	11565.000	11720.000	8549.000
Less	EXPENSES	8870.000	9296.000	6761.000
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2694.000	2424.000	1788.000
Less	FINANCIAL EXPENSES	3.000	4.000	9.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2691.000	2420.000	1779.000
Less/ Add	DEPRECIATION/ AMORTISATION	274.000	282.000	219.000
	PROFIT/ (LOSS) BEFORE TAX	2417.000	2138.000	1560.000
Less	TAX	817.000	722.000	487.000
	PROFIT/ (LOSS) AFTER TAX	1600.000	1416.000	1073.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	73.000	57.000	64.000
Less	APPROPRIATIONS
	Transfer to General Reserve	160.000	142.000	107.000
	Dividend	1223.000	1080.000	837.000
	Tax on Dividend	208.000	178.000	136.000
	Total	1591.000	1400.000	1080.000
	Balance Carried to the B/S	82.000	73.000	57.000
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	684.000	0.000	19.872
	Software development	0.000	0.000	374.032
	Income from Shared Services	0.000	0.000	36.025
	TOTAL EARNINGS	684.000	0.000	429.929
	IMPORTS
	Raw Materials	0.000	0.000	1166.8
	Components and Stores parts	0.000	0.000	14.671
	Capital Goods	0.000	0.000	25.955
	TOTAL IMPORTS	0.000	0.000	1207.426
	Earnings / (Loss) Per Share (Rs.)	0.045	95.03	71.18

KEY RATIOS

PARTICULARS		31.03.2014 (12 Months)	31.03.2013 (15 Months)	31.12.2011
Net Profit Margin (PAT/Sales)	(%)	13.83	12.08	12.55
Operating Profit Margin (PBDIT / Sales)	(%)	23.29	20.68	20.91
Return on Total Assets (PBT/Total Assets}	(%)	17.39	18.84	16.51
Return on Investment (ROI) (PBT/Networth)		2.05	2.11	1.83
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.00	0.99	0.97

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	149.000	149.000	349.000
Reserves & Surplus	704.000	862.000	831.000
Net worth	853.000	1011.000	1180.000
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	8549.000	11720.000	11565.000
		37.092	(1.323)

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	8549.000	11720.000	11565.000
Profit	1073.000	1416.000	1600.000
	12.55%	12.08%	13.83%

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	No
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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90304106	12/11/1986 *	3,850,000.00	FINNISH FUND FOR INDUSTRIAL DEVELOPMENT COOPERATIO N LIMITED	RATAKATU, 27; 00120; HELSINKI, FINLAND, FINLAND	-

* Date of charge modification

FIXED ASSETS

· Land

· Leasehold improvements

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office 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.61.92
UK Pound	1	Rs.97.12
Euro	1	Rs.76.93

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUM
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		68

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.