MIRA INFORM REPORT

Report Date :

15.09.2014

IDENTIFICATION DETAILS

Name :	KAYNES TECHNOLOGY INDIA PRIVATE LIMITED
Registered Office :	23-25, Belagola, Food Industrial Estate, Metalgalli P O, Mysore – 570 016, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.03.2008
Com. Reg. No.:	08-045825
Capital Investment / Paid-up Capital :	Rs.49.500 Millions
CIN No.: [Company Identification No.]	U29128KA2008PTC045825
TAN No.: [Tax Deduction & Collection Account No.]	BLRK08538F
PAN No.: [Permanent Account No.]	AADCK3295K
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in providing Electronic Manufacturing Service EMS Solutions.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1622000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s healthy financial risk profile marked by decent liquidity position and fair profitability levels of the levels of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual 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.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loan facilities BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 2013

Rating Agency Name	ICRA
Rating	Fund based facilities A3+
Rating Explanation	Moderate degree of safety and high credit risk.
Date	October 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 DENIED BY

Name :	Mr. Sachin
Designation :	Accountant
Contact No.:	91-821-4280259
Date :	10.09.2014

LOCATIONS

Registered Office / Corporate Office / Factory 1 :	23-25, Belagola, Food Industrial Estate, Metalgalli P O, Mysore – 570 016, Karnataka, India
Tel. No.:	91-821-4280259 / 4280270 / 2582595
Fax No.:	91-821-2282701 / 2582595
E-Mail :	commercial@kaynestechnology.net ramesh-kannan@kaynestyechnology.net ganeshan.s@kaynestechnology.net artysharath@kaynestechnology.net
Website :	www.kaynestechnology.net
Area :	3 Acres
Location :	Owned
Factory 2 :	Plot No 4, Near Govt Middle Primary School, Sector 5, Parwanoo PO, Solan District – 173 220, Himachal Pradesh, India
Tel. No.:	91-1792-233045
Factory 3 :	Khasra Hope Town, Camp Road, Industrail Area, Selaqui PO, Vikas Nagar, Dehradun District Uttarkand - 248 197, India
Factory 4 :	# A-53, 2nd Main, 2nd Phase, Peenya Industrial Area, Bangalore – 560 058 Karnataka, India
Tel. No.:	91-80-40902613 / 40902614
Factory 5 :	Plot No C-22, Mogappair Industrial Estate, East 6^th Block, Chennai – 600037 Tamilnadu, India
Tel. No.:	91-44-26564175
Factory 6 :	Plot No 339,Hebbal Industrial Area, Hebbal Mysore – 570016 Karnataka, India
Tel. No.:	91-821-4242903 ,4242904
E-Mail :	commercial@kaynestechnology.net
Factory 7 :	Plot No : 58, Sector 6 , IMT Manesar , GURGAON – 122050 , Haryana Delhi, India
Tel. No.:	91-124-4370261
Overseas Office 1 :	9418 N. Green Bay Road, Suite # 329, Milwaukee, WI 53209-1072, USA
Tel. No.:	414-339-8866
E-Mail :	pnedungadi@kaynestechnology.net
Overseas Office 2 :	663 Worcester Drive, Thorofare, NJ 08086-3827, USA
Tel. No.:	856-649-9320
E-Mail :	unni@kaynestechnology.net

DIRECTORS

As on 28.09.2013

Name :

Mr. Ramesh Kunhikannan

Designation :

Managing Director

Address :

Rukrani Emerald Enclave, Belavadi Post, Mysore – 570 018, Karnataka, India

Date of Birth/Age :

28.02.1964

Date of Appointment :

24.09.2012

PAN No.:

AGSPK2014Q

DIN No.:

02063167

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	U00360KA1995PTC018340	MARITRONICS INDIA PRIVATE LIMITED	Director	17/12/99	17/12/99	-	Active	NO
2	U29128KA2008PTC045825	Kaynes Technology India Private Limited	Managing director	24/09/12	28/03/08	-	Active	NO
3	U72900TN2009PTC073280	KEMSYS TECHNOLOGIES PRIVATE LIMITED	Director	20/10/09	20/10/09	-	Active	NO
4	U72200KA2009PTC051856	KAYNES EMBEDDED SYSTEMS PRIVATE LIMITED	Director	16/12/09	16/12/09	-	Active	NO
5	U74900KA2014PTC074083	KAYNES INTERCONNECTION SYSTEMS INDIA PRIVATE LIMITED	Director	11/03/14	11/03/14	-	Active	NO

Name :

Mrs. Savitha Ramesh

Designation :

Director

Address :

Rukrani Emerald Enclave, Belavadi Post, Mysore – 570 018, Karnataka, India

Date of Birth/Age :

04.03.1972

Date of Appointment :

28.03.2008

PAN No.:

AHQPS3290P

DIN No.:

01756684

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	U00360KA1995PTC018340	MARITRONICS INDIA PRIVATE LIMITED	Director	17/12/99	17/12/99	-	Active	NO
2	U29128KA2008PTC045825	Kaynes Technology India Private Limited	Managing director	24/09/12	28/03/08	-	Active	NO
3	U72900TN2009PTC073280	KEMSYS TECHNOLOGIES PRIVATE LIMITED	Director	20/10/09	20/10/09	-	Active	NO
4	U72200KA2009PTC051856	KAYNES EMBEDDED SYSTEMS PRIVATE LIMITED	Director	16/12/09	16/12/09	-	Active	NO
5	U74900KA2014PTC074083	KAYNES INTERCONNECTION SYSTEMS INDIA PRIVATE LIMITED	Director	11/03/14	11/03/14	-	Active	NO

Name :

Podila Pandu Ranga Rao

Designation :

Additional director

Address :

25, Flat No.B1, Ashok Ganapathim, 4^th Main Road, Raja Annamalaipuram, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

25.06.1947

Date of Appointment :

10.03.2012

PAN No.:

ABPPR0221G

DIN No.:

02356232

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	L31900TN1985PLC012343	UCAL FUEL SYSTEMS LIMITED	Director	29/09/09	26/09/08	25/09/11	Active	NO
2	U29128KA2008PTC045825	Kaynes Technology India Private Limited	Director	29/09/12	10/03/12	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sachin
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares
Ramesh Kunhikannan	4947509
Savitha Ramesh	2475
Yogesh Madhu Talrejn	1
Damodar Bathija	1
G. Sunil Kumar	1
M. Gopal Jadwani	1
Mona Rajkumar Gokllancy	1
Rajkumar T Gokllancy	1
Om Sai Associates	1
Somya Roop Goklancy	1
Gabindran Krishnadas Chawla and Bros.	1
Shanthi Bai	1
Prakashchand Kothari	1
Usha Hariram	1
Purshitam Tirthdas Bathija	1
Sunitha Bathija	1
Hariram Amarchand	1
Abishek Totlani	1
Total	4950000

As on 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in providing Electronic Manufacturing Service EMS Solutions.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Canara Bank, No. 6, Temple Road, Jayalakshmipuram, Mysore – 570 012, Karnataka, India

· Ing Vysya Bank Limited, 22, Ground Floor, Ing Vysya House, M. G. Road, Bangalore – 560001, Karnataka, India

· Export-Import Bank of India, Center One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

· HDFC Bank Limited

· The South Indian Bank Limited Door No. 50, 51, 1^st Floor, Devaraj Urs Road, Mysore - 570001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	39.757	9.010
Rupee term loans from others	9.895	20.188
Other loans and advances	1.412	1.845
SHORT TERM BORROWINGS
Working capital loans from banks	494.259	322.060
Total	545.323	353.103

Banking Relations :	--
Financial Institution :	L and T Finance Limited, Unit No. 1, No 306, 3^rd Floor, Pride Hulkul, Lalbagh Road, Bangalore - 560027, Karnataka, India
Auditors :
Name :	Varma and Varma Chartered Accountants
Address :	# 424, 4^th `C’ Main, 6^th Cross, OMBR Layout Banaswadi, Bangalore – 560043, Karnataka, India
PAN No. :	AABFV9555E
Associates :	v Kaynes Technology Europe GmbH
Subsidiary company :	v Kaynes Embedded Systems Private Limited v Kemsys Technologies Private Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	v Kadd Technologies (Proprietary Concern) v Kaynes Energy Systems (Partnership Firm)

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4950000	Equity Shares	Rs.10/- each	Rs.49.500 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	49.500	25.000	25.000
(b) Reserves & Surplus	356.122	294.154	206.425
(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)	405.622	319.154	231.425
(3) Non-Current Liabilities
(a) long-term borrowings	51.064	31.043	28.810
(b) Deferred tax liabilities (Net)	25.593	15.929	12.353
(c) Other long term liabilities	0.000	0.000	0.386
(d) long-term provisions	0.762	0.016	1.467
Total Non-current Liabilities (3)	77.419	46.988	43.016
(4) Current Liabilities
(a) Short term borrowings	552.765	322.060	247.992
(b) Trade payables	561.993	397.066	329.311
(c) Other current liabilities	92.734	64.641	39.232
(d) Short-term provisions	26.431	29.705	12.374
Total Current Liabilities (4)	1233.923	813.472	628.909
TOTAL	1716.964	1179.614	903.350
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	235.364	179.071	154.970
(ii) Intangible Assets	2.666	2.812	1.445
(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	19.358	14.458	3.656
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	27.329	38.527	48.033
(e) Other Non-current assets	0.000	0.000	0.082
Total Non-Current Assets	284.717	234.868	208.186
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	416.394	389.211	232.700
(c) Trade receivables	870.121	465.529	419.716
(d) Cash and cash equivalents	51.084	53.692	29.427
(e) Short-term loans and advances	93.287	35.782	9.282
(f) Other current assets	1.361	0.532	4.039
Total Current Assets	1432.247	944.746	695.164
TOTAL	1716.964	1179.614	903.350

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2084.602	1585.132	1320.067
		Other Income	11.704	9.383	7.197
		TOTAL	2096.306	1594.515	1327.264
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1874.021	1396.924	1183.287
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		222.285	197.591	143.977
Less	FINANCIAL EXPENSES		66.851	56.418	40.077
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		155.434	141.173	103.900
Less/ Add	DEPRECIATION/ AMORTISATION		22.302	16.869	10.206
	PROFIT/ (LOSS) BEFORE TAX		133.132	124.304	93.694
Less	TAX		46.664	36.576	25.251
	PROFIT/ (LOSS) AFTER TAX		86.468	87.728	68.443
	Earnings / (Loss) Per Share (Rs.)		17.47	17.72	13.83

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.12	5.50	5.16
Net Profit Margin (PBT/Sales)	(%)	6.39	7.84	7.10
Return on Total Assets (PBT/Total Assets}	(%)	7.84	10.67	10.41
Return on Investment (ROI) (PBT/Networth)		0.33	0.39	0.40
Debt Equity Ratio (Total Debt/Networth)		1.49	1.11	1.20
Current Ratio (Current Asset/Current Liability)		1.16	1.16	1.11

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	25.000	25.000	49.500
Reserves & Surplus	206.425	294.154	356.122
Net worth	231.425	319.154	405.622
long-term borrowings	28.810	31.043	51.064
Short term borrowings	247.992	322.060	552.765
Total borrowings	276.802	353.103	603.829
Debt/Equity ratio	1.196	1.106	1.489

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)
Sales	1320.067	1585.132	2084.602
		20.080	31.510

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1320.067	1585.132	2084.602
Profit	68.443	87.728	86.468
	5.18%	5.53%	4.15%

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

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties	21.906	0.000
Other loans and advances	36.600	0.000
Total	58.506	0.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10482722	04/02/2014	1,570,000.00	THE SOUTH INDIAN BANK LIMITED	Door No. 50, 51, 1st Floor, Devaraj Urs Road, Mysore, Karnataka - 570001, INDIA	B98534084
2	10464082	12/11/2013	10,000,000.00	L & T Finance Limited	Unit No. 1, No 306, 3rd Floor, Pride Hulkul,, Lalbagh Road, Bangalore, Karnataka - 560027, INDIA	B91074989
3	10460920	11/11/2013	5,995,000.00	THE SOUTH INDIAN BANK LIMITED	Door No. 50, 51, 1st Floor, Devaraj Urs Road, Mysore, Karnataka - 570001, INDIA	B89739312
4	10460918	21/10/2013	750,000.00	THE SOUTH INDIAN BANK LIMITED	Door No. 50, 51, 1st Floor, Devaraj Urs Road, Mysore, Karnataka - 570001, INDIA	B89739023
5	10369063	01/08/2013 *	50,000,000.00	ING VYSYA BANK LIMITED	22,GROUND FLOOR, ING VYSYA HOUSE,M.G.ROAD, BANGALORE, Karnataka - 560001, INDIA	B85559011
6	10369075	27/12/2013 *	380,000,000.00	ING VYSYA BANK LIMITED	22,GROUND FLOOR, ING VYSYA HOUSE, M.G.ROAD, BANGALORE, Karnataka - 560001, INDIA	B95340519
7	10248552	29/09/2010	730,000.00	Canara Bank	No 6, Temple Road, Jayalakshmipuram Mysore, Mysore, Karnataka - 570012, INDIA	A97846158
8	10229604	18/09/2010 *	31,000,000.00	Karnataka State Financial Corporation	Sowrabha Chambers, Lashkar Mohalla, Sri Harsha Road, Mysore, Karnataka - 570001, INDIA	A96077938
9	10210067	01/03/2010	800,000.00	CANARA BANK	NO.6, TEMPLE ROAD, JAYALAKSHMIPURAM, MYSORE, Karnataka - 570012, INDIA	A81951410
10	10188885	02/11/2009	12,500,000.00	Karnataka State Financial Corporation	2716, L-4, 1st Floor, Lashkar Mohalla, Sri Harsha  Road, Mysore, Karnataka - 570001, INDIA	A73754186
11	10143013	27/06/2014 *	509,730,000.00	CANARA BANK	Jayalakshmipuram Branch, No.6, Temple Road, Jaya  lakshmipuram, Mysore, Karnataka - 570022, INDIA	C18308593

* Date of charge modification

CORPORATE INFORMATION:

Subject is a company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in providing Electronic Manufacturing Service EMS solutions to suit individual customer requirements. The Company is headquartered at Mysore and has its 8 manufacturing facilities at 5 locations in India.

FINANCIAL RESULTS

The company has achieved a total turnover of Rs. 2084.602 millions during the financial year ended 31^st March 2013 as against Rs. 1585.132 millions in the previous financial year. The total turnover grew year on year by 31.51%in the current year. The company has earned a net profit (after depreciation and tax) of Rs. 86.468 millions in the current year as against Rs. 87.728 millions in the previous year.

Gross margin for the current year fell from 32.30% to 28.09%. This is on account of material cost increase and import of materials by air. Operating and other expenses increased from Rs. 323.724 millions in FY 2011-12 to Rs. 374.979 millions in FY 2012-13. Cos as a % to sales is at 17.99% in FY 2012-13 as against 20.42% in FY 2011-12. The monetary value increase in operating and other expenses is mainly because of increase in employee cost, Exchange loss on account of rupee devaluation etc.

Profit after tax for the year 2012-13 is Rs. 86.468 millions as against Rs. 87.728 millions in 2011-12. Basic EPS for the year 2012-13 is Rs.17 as against Rs. 18 in 2011-12.

OUTLOOK OF THE COMPANY

Thanks to the excellent patronage by its customers, the commitment demonstrated by its employees towards the

Vision of the company and the unstinted support by its business partners, they are consistently growing year on year and have reached the current level of performance.

The company’s strategy of emphasizing on the Process and Customer orientation (Kaynes has 7 different global process accreditations and a Customer list that makes any EMS company envious) to achieve highest Quality Standards, agility and velocity in all its business operations gave immense satisfaction to their Customers, their employees and all their business associates.

Global economic slowdown and its impact on India might have had some impact on their performance during this year especially due to an unexpected weakening of rupee resulting into increase in their operating cost. They are one among the few Indian companies who have still managed to have a reasonable growth in both top line and their bottom line.

INDIAN EMS MARKET

India’s focus on its electronic manufacturing is always an interesting subject matter and the country now sees a large amount of electronic products being imported to the country. The rate at which import growing, it may exceed oil import some time by 2020. Now the government of India is realizing the importance of supporting electronic manufacturing and they see the EMS business shall be doubling in the next 5-8 years. They in Kaynes see this as a great opportunity for both domestic and international market. Due to significantly higher costs level, they are now seeing lot of customers from US and Europe market look for Indian companies to meet their requirement. These volumes are low-mid level and requires tremendous amount of flexibility on the part of the vendor to meet up with this challenge. They in Kaynes are already geared up to meet this be having a business focus by verticals viz, Defense and Aerospace, Medical, Automotive, Industrial electronics etc.

For the Indian market they are giving value proposition by offering solutions at most competitive pricing and they also are now targeting geographical expansion within India to be closer to their customers. They have entered into a Joint Venture in Australia for expanding the market. They shall certainly look forward to have more facilities in the coming years apart from expanding the capacities available.

Their strength has been their employees and they continue to give lot of emphasis on training and development of their work force. They have now brought in quality professional to bring more strength to their management and they continue to excite them to achieve higher business goals and continue to create value to their customers.

They see an impending wave of global interest in Indian EMS as due to the eagerness to achieve lower costs, deliver products to the shifting market locations and all this without hampering the Quality Standards. Kaynes is fully geared to meet these expectations and en-cash the opportunity.

Kaynes is conscious of the challenges involved in scaling up its operations, providing all the requisite resources, whether they are financial, technological or managerial. Kaynes believes that the corner stone of the strategy for future is investment in the Human Resources which continues to conceive and execute the future Technology and Business Road Map of the organization. Kaynes will continue its exciting journey of building its Financial Capital through building stronger Human Capital and Knowledge Capital. The company’s well nurtured Value System and Culture would guarantee that company growth is in sync with the growth of all stakeholders.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and Equipment

œ Furniture and Fixtures

œ Vehicles

œ Office Equipment

œ 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 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.60.84
UK Pound	1	Rs.98.72
Euro	1	Rs.78.64

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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		50

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.