MIRA INFORM REPORT

Report Date :

10.09.2014

IDENTIFICATION DETAILS

Name :	KIRAN ELECTRICAL INDUSTRIES
Registered Office :	1-8-206, Masetty Plaza, Flat. No. 204, Opposite Sind Bank, P.G. Road, Secunderabad – 3, Hyderabad
Country :	India
Financials (as on) :	31.03.2013
Com. Reg. No.:	08/05/01306/PMT/SSI/82-83
Year of Establishment :	1982
Capital Investment / Paid-up Capital :	Rs.1.967 Millions (Estimated)
IEC No.:	29150037420
PAN No.: [Permanent Account No.]	AADFK2690M
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Manufacturer of Fiber Glass Products, Braids
No. of Employees :	27 (Approximately) (In office : 09, In Factory : 18)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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 partnership concern having moderate track record. Management has reported modest scale of operations along with high gearing during FY 13. However, trade relations are fair. Business is active. Payment Terms are reported as slow but correct. The concern 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.

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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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

Name :	Mr. Rajendra Kulkarni
Designation :	Manager
Contact No.:	91-9342503021
Date :	03.09.2014

LOCATIONS

Registered Office :	1-8-206, Masetty Plaza, F.No. 204, Opposite Sind Bank, P.G. Road, Secunderabad – 3, Hyderabad, India
Tel. No.:	91-40-27894291 / 27893255 / 421011468
Mobile No.:	91-9342503021 (Mr. Rajendra Kulkarni)
Fax No.:	91-8482-2322221
E-Mail :	info@kiranudyog.com
Website :	www.kirnudyog.com
Location :	Rented
Head Office :	Plot No. 5, Naubad Industrial Area, NAubad, Bidar – 585 403, India
Tel. No.:	91-8482-232021 /
Fax No.:	91-8482-232221
E-Mail :	info@kiranudyog.com

PARTNERS

Name :	Mr. Sushil Malani
Designation :	Partner
Address :	House No. 6-6-54, Osman Gunj, Bidar – 585 401, Karnataka, India
Date of Birth/Age :	37 Years
Qualification :	B.E.
Experience :	14 Years
Name :	Ms. Vandana Malani
Designation :	Partner
Address :	House No. 6-6-54, Osman Gunj, Bidar – 585 401, Karnataka, India
Date of Birth/Age :	36 Years
Qualification :	B. Com
Experience :	10 YEars
Name :	Mr. Prems Malani
Designation :	Partner
Address :	House No. 6-6-54, Osman Gunj, Bidar – 585 401, Karnataka, India
Date of Birth/Age :	60 Years
Qualification :	B.A.
Experience :	35 Years
Name :	Ms. Shruti Malani
Designation :	Partner
Address :	House No. 6-6-54, Osman Gunj, Bidar – 585 401, Karnataka, India
Date of Birth/Age :	28 Years
Qualification :	MBA
Experience :	04 Years

KEY EXECUTIVES

Name :	Mr. Rajendra Kulkarni
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Manufacturer of Fiber Glass Products, Braids
Products :	· Fiber Glass Products · Braids
Terms :
Selling :	Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :	Retailers and End Users
No. of Employees :	27 (Approximately) (In office : 09, In Factory : 18)
Bankers :	Axis Bank Limited, B.V.B. College Road, Bidar – 585 401, Karnataka, India
Facilities :	CL : Rs. 25.000 Million

Banking Relations :	--
Auditors :
Name :	Kamal Kishore Attal Chartered Accountants
Address :	Osman Gunj, Bidar – 585 401, Karnataka, India
Tel. No :	91-8482-226405
E-Mail :	kamalattal@yahoo.com
Sister Concern :	· Kiran Udyog, Plot No. 40, Naubad Industrial Area, Naubad, Bidar – 585 403 · Kiran Fiber Glass Products, Shed No. S,D-11 To D-14, NAubad Industrial Area, Naubad, Bidar – 585 403

CAPITAL STRUCTURE

As on: 31.03.2013

Capital Investment :
Owned :	1.967 Millions (Estimated)
Borrowed :	--
Total :	1.967 Millions (Estimated)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		1.967
2] Share Application Money		0.00
3] Reserves & Surplus		0.560
4] (Accumulated Losses)		0.000
NETWORTH		2.527
LOAN FUNDS
1] Secured Loans		0.367
2] Unsecured Loans		9.114
TOTAL BORROWING		9.481
DEFERRED TAX LIABILITIES		0.000
TOTAL		12.008
APPLICATION OF FUNDS		0.000
FIXED ASSETS [Net Block]		4.196
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.865
	Sundry Debtors	5.310
	Cash & Bank Balances	0.738
	Other Current Assets	0.000
	Loans & Advances	0.550
Total Current Assets		9.463
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.441
	Other Current Liabilities	0.130
	Sales Advances	0.080
Total Current Liabilities		1.651
Net Current Assets		7.812
MISCELLANEOUS EXPENSES		0.000
TOTAL		12.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013
	SALES
		Income	9.233
		Other Income	0.563
		TOTAL	9.796
Less	EXPENSES
		Cost of Goods Sold	5.286
		Labour Wages	0.443
		Freight Charges	0.150
		Electricity Charges	0.596
		Salary and Wages	0.617
		Vehicle Repairs	0.011
		Vehicle Tax	0.001
		Travelling Expenses	0.019
		Telephone and Mobile	0.069
		Provident Fund	0.141
		Factory License Renewal	0.003
		Printing And Stationery	0.006
		Petrol and Diesel	0.175
		Packing Materials	0.059
		Insurance	0.055
		Sundry Office Expenses	0.053
		Job Works Contractor	0.441
		Maintenance and Repairs	0.203
		Jobwork	0.067
		Factory Expenses	0.187
		Electricals Items	0.010
		Building Repairs	0.004
		Bank Commission and Interest	0.045
		Discount Paid	0.004
		Audit Fees	0.003
		Salary to Partners	0.300
		Interest to Partners	0.167
		TOTAL EXPENSES	9.115
Less/ Add	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.681
Less/ Add	DEPRECIATION/ AMORTISATION		0.499
	NET PROFIT		0.184
	Earnings Per Share (Rs.)		0.09

KEY RATIOS

PARTICULARS		31.03.2013
PAT / Total Income	(%)	1.88
Net Profit Margin (PBT/Sales)	(%)	1.99
Return on Total Assets (PBT/Total Assets}	(%)	2.35
Return on Investment (ROI) (PBT/Networth)		7.28
Debt Equity Ratio (Total Debt /Networth)		3.75
Current Ratio (Current Asset/Current Liability)		1.21

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	Yes
11]	Turnover of firm for last One year	Yes
12]	Profitability for last One year	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)	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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

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 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.60.42
UK Pound	1	Rs.97.24
Euro	1	Rs.77.92

INFORMATION DETAILS

Information Gathered by :	HEN
Analysis Done by :	SUB
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		29

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.