MIRA INFORM REPORT

Report No. :	336523
Report Date :	14.08.2015

IDENTIFICATION DETAILS

Name :	K TECH PRIVATE LIMITED
Registered Office :	200/5A, 5B, 10 and 11, Vayalur Village, Surarkapuram Road, Taluk Thiruvallur – 602105, Tamilnadu
Tel. No.:	91-8939899126 (Ms. Manju)
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.02.2012
Com. Reg. No.:	18-084486
Capital Investment / Paid-up Capital :	Rs.89.759 Million
CIN No.: [Company Identification No.]	U25190TN2012PTC084486
IEC No.:	0412013622
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECK6585D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture, import, export and deal in rubber, metal, plastic, polymer and other allied products for automotive and engineering industry.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 240000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a wholly owned subsidiary of “Kunhwa Engineering Company Limited”, Korea. It is having satisfactory track. Company has incurred losses from its operations which has resulted in to some accumulated losses. However, company’s low gearing leading to sound financial risk profile. Further, company receives strong managerial and financial support from its holding company. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of strong foreign holding, the company can be considered for business dealings with 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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

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 31-03-2013.

INFORMATION PARTED BY

Name :	Ms. Manju
Designation :	Accounts Manager
Contact No.:	91-8939899126
Date :	13.08.2015

LOCATIONS

Registered Office :	200/5A, 5B, 10 and 11, Vayalur Village, Surarkapuram Road, Taluk Thiruvallur – 602105, Tamilnadu, India
Tel. No.:	Not Available
Mobile No.:	91-8939899126 (Ms. Manju)
Fax No.:	Not Available
E-Mail :	kunho.kim@kunhwa.co.kr
Website :	www.kunhwa.co.kr
Location :	Owned
Locality :	Commercial

DIRECTORS

As on 30.09.2014

Name :	Hur Yonghoon
Designation :	Director
Address :	No.29 Devadi Street, Mylapore, Chennai - 600004, Tamilnadu, India
Date of Birth/Age :	05.10.1964
Date of Appointment :	15.02.2012
DIN No.:	05153431
Name :	Kim Young Chun
Designation :	Additional Director
Address :	102-1202, 625 Gil 21, Dalgubeoldaero, Suseong-Gu, Daegu City, Korea, Na, Korea, Republic Of
Date of Birth/Age :	14.02.1959
Date of Appointment :	14.05.2013
DIN No.:	06609807
Name :	Kim Kunho
Designation :	Alternate Director
Address :	No.29 Devadi Street, Mylapore, Chennai - 600004, Tamilnadu, India
Date of Birth/Age :	10.03.1984
Date of Appointment :	14.05.2013
DIN No.:	05153443
Name :	Sanghyung Lee
Designation :	Alternate Director
Address :	Seongdangdong The Sharp 105-703, 115 Janggi-Ro, Dalseo-Gu, Daegu Metropolitan, Korea - 704917, Korea, Republic of
Date of Appointment :	17.11.2014
DIN No.:	07010344

KEY EXECUTIVES

Name :	Ms. Manju
Designation :	Accounts Manager

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Kunhwa Engineering Company Limited, Korea	12019893
Yonghoon Hur	10
Total	12019903

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture, import, export and deal in rubber, metal, plastic, polymer and other allied products for automotive and engineering industry.

Products :

Product Description	Item Code No. (ITC Code)
Other Parts and Accessories of Motor Vehicles	87089900

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Products :

Raw Material

Countries :

• Korea
• China
• Singapore

Terms :

Selling :

Cash, Advance Payment and Cheque

Purchasing :

Cash, Advance Payment and Cheque

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers, Retailers and End Users

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 :

100 (Approximately)

Bankers :

Banker Name	Shinhan Bank
Branch Address	69/4, A1, Bang Highway, Sripermudur - 602105
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 Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Working capital loans from banks	68.000	75.100
Loans repayable on demand	11.073	38.354
Total	79.073	113.454

Auditors :
Name :	P. Venkatesan and Company Chartered Accountants
Address :	3/1A, Sullivan Apartments, 22, P. S. Sivaswamy Road (Sullivan Garden Road), Mylapore, Chennai – 600004, Tamilnadu, India
PAN No.:	AAAFP0885G
Memberships :	Not Available
Collaborators :	Not Available
Holding company :	Kunhwa Engineering Company Limited, Korea
Others :	Trellborg Kunhwa Company Limited, Korea Daesang Industry Company Limited, Korea

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital: Rs.250.000 Million

Issued, Subscribed & Paid-up Capital: Rs.244.929 Million

As on 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
12500000	Equity Shares	Rs.10/- each	Rs.125.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
12019903	Equity Shares	Rs.10/- each	Rs.120.199 Million

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
12500000	Equity Shares	Rs.10/- each	Rs.125.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
8975913	Equity Shares	Rs.10/- each	Rs.89.759 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	89.759	31.961
(b) Reserves & Surplus	(34.394)	(22.581)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	30.440	0.000
Total Shareholders’ Funds (1) + (2)	85.805	9.380
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	79.073	113.454
(b) Trade payables	97.066	27.669
(c) Other current liabilities	4.116	22.256
(d) Short-term provisions	3.632	2.179
Total Current Liabilities (4)	183.887	165.558
TOTAL	269.692	174.938
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	107.811	87.510
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	1.925	-2.274
(d) Long-term Loan and Advances	31.225	23.868
(e) Other Non-current assets	0.000	1.928
Total Non-Current Assets	140.961	111.032
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	31.005	32.757
(c) Trade receivables	88.563	18.084
(d) Cash and cash equivalents	4.937	10.816
(e) Short-term loans and advances	0.296	0.055
(f) Other current assets	3.930	2.194
Total Current Assets	128.731	63.906
TOTAL	269.692	174.938

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	01.12.2012 To 31.03.2013
	TURNOVER	223.700	34.300
	EXPENSES	NA	NA
	PROFIT/ (LOSS) BEFORE TAX	NA	NA
Less	TAX	NA	NA
	PROFIT/ (LOSS) AFTER TAX	(25.100)	(22.581)
	IMPORTS
	Raw Materials	145.912	51.173
	Components and Stores parts	0.301	0.788
	Capital Goods	48.162	74.903
	TOTAL IMPORTS	194.375	126.864
	Earnings / (Loss) Per Share (Rs.)	(2.79)	(2.51)

Particulars	31.03.2015
Sales Turnover (Approximately)	250.000

Expected Sales (2015-16): Rs.350.000 Million

The above information has been parted by Mr. Manju (Accounts Manager).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA
Cash generated from operations	NA	NA
Net cash flows from (used in) operations	(1.639)	(10.891)

KEY RATIOS

PARTICULARS		31.03.2014	01.12.2012 To 31.03.2013
Net Profit Margin (PAT/Sales)	(%)	(11.22)	(65.83)
Debt Equity Ratio (Total Debt/Networth)		0.92	12.10
Current Ratio (Current Asset/Current Liability)		0.70	0.39

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	31.961	89.759
Reserves & Surplus	(22.581)	(34.394)
Share Application money pending allotment	0.000	30.440
Net worth	9.380	85.805
long-term borrowings	0.000	0.000
Short term borrowings	113.454	79.073
Total borrowings	113.454	79.073
Debt/Equity ratio	12.095	0.922

YEAR-ON-YEAR GROWTH

Year on Year Growth	01.12.2012 To 31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	34.300	223.700
		552.187

NET PROFIT MARGIN

Net Profit Margin	01.12.2012 To 31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	34.300	223.700
Profit	(22.581)	(25.100)
	(65.83%)	(11.22%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last about four months and two year	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	Yes
29	Profitability for last about four months and one year	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

Note:

Registered address has been shifted from the 524/3C, A Block, Nemili Road, Mannur Village, Mannur Village, Kancheepuram – 602105, Tamilnadu, India to the present address.

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

• Plant and Equipment
• 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 records 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.64.92
UK Pound	1	Rs.101.43
Euro	1	Rs.72.25

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	KIN
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		41

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.