MIRA INFORM REPORT

Report No. :	305526
Report Date :	04.02.2015

IDENTIFICATION DETAILS

Name :	KARTHIK INDUCTION LIMITED
Registered Office :	Plot No. 120-121, Kundaim, Industrial Estate, Kundam - 403115, Goa
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.10.1994
Com. Reg. No.:	24-001666
Capital Investment / Paid-up Capital :	Rs. 14.429 Millions
CIN No.: [Company Identification No.]	L27108GA1994PLC001666
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturer of M S Ingots and M S Billets
No. of Employees :	Not Available

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

Maximum Credit Limit :	USD 13000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Borrowing if the company is on the higher side. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow. The company can be considered for business dealings with 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

Rating Agency Name	CARE
Rating	Long term bank facilities = “B”
Rating Explanation	High risk of default
Date	January 9, 2014

Rating Agency Name	CARE
Rating	Short term bank facilities = “A4”
Rating Explanation	Minimal degree of safety and very high credit risk
Date	January 9, 2014

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.

LOCATIONS

Registered/ Corporate Office :	Plot No. 120-121, Kundaim, Industrial Estate, Kundam - 403115, Goa, India
Tel. No.:	91-832-2395555/ 2395289/ 2395096
Fax No.:	91-832-2395555/ 2395132
E-Mail :	karthikgoa2@yahoo.co.in
Head Quarter :	1^st Floor, “Sriteja”, Plot No. 232, Phase II, Kavuri Hills, Madhapur, Hyderabad – 500033, Telangana, India
Tel. No.:	91-40-23118665/ 23118653
Fax No.:	91-40-23117168
E-Mail :	karthikgroup@yahoo.co.in

DIRECTORS

AS ON 31.03.2014

Name :

Raghvendra Bhupal

Designation :

Managing Director

Address :

D-11, La Marvel Colony, Dona Paula, North Goa – 403004, India

Date of Birth/Age :

29.07.1958

Date of Appointment :

19.11.2012

DIN No.:

00159516

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	L27108GA1994PLC001666	KARTHIK INDUCTIONS LIMITED	Managing director	19/11/2012	06/10/1994	-	Active	NO
2	U60231GA1997PTC002330	KARTHIK ASSOCIATED ROAD CARRIERS PRIVATE LIMITED	Director	30/04/1997	30/04/1997	-	Active	NO
3	U27106GA1998PTC002541	RUKMINIRAMA STEEL ROLLINGS PRIVATE LIMITED	Director	26/03/1998	26/03/1998	-	Active	NO
4	U27310KL1994PLC021033	STEELMAX ALLOYS LIMITED	Director	15/07/2003	15/07/2003	04/03/2008	Active	NO
5	U51420OR1997PLC005092	LATASHA EXPORTS LIMITED	Director	08/09/2003	08/09/2003	30/06/2008	Active	NO
6	U40100GA1996PLC002167	RUKMINIRAMA FERRO ALLOYS AND POWER LIMITED	Director	30/09/2003	30/09/2003	-	Active	NO
7	U27101TG2004PLC044533	KARTHIK RUKMINI ALLOYS & ENERGY LIMITED	Director	15/04/2005	15/04/2005	05/05/2008	Active	NO

Name :

Ramu A.

Designation :

Director

Address :

Adwalpalkar Shelter, F-1 Block E Phase IV, Caranzalem – 403002, Goa, India

Date of Birth/Age :

01.07.1971

Date of Appointment :

02.08.2008

DIN No.:

00160028

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	U51420OR1997PLC005092	LATASHA EXPORTS LIMITED	Managing director	12/07/2004	12/07/2004	30/06/2008	Active	NO
2	L27109TG1992PLC013797	KARTHIK ALLOYS LIMITED	Director	01/08/2005	01/08/2005	-	Dormant	NO
3	L31200GA1992PLC001969	KARTHIK ALLOYS LIMITED	Director	01/08/2005	01/08/2005	12/09/2012	Active	NO
4	U27310WB2007PLC117625	RUKMINIRAMA MANGANESE ALLOYS LIMITED	Director	06/08/2007	06/08/2007	-	Strike off	NO
5	L27108GA1994PLC001666	KARTHIK INDUCTIONS LIMITED	Additional director	02/08/2008	02/08/2008	-	Active	NO

Name :

Srikanth R. Bhupal

Designation :

Director

Address :

D 11, La Marvel Colony, Dona Paula, North Goa – 403004, India

Date of Birth/Age :

10.03.1989

Date of Appointment :

26.09.2013

DIN No.:

06391001

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	L27108GA1994PLC001666	KARTHIK INDUCTIONS LIMITED	Director	26/09/2013	19/10/2012	-	Active	NO
2	U14220TG2012PLC083824	KRUS TRADEX LIMITED	Director	25/10/2012	25/10/2012	-	Active	NO

Name :

Uttam Kumar S. Bhupal

Designation :

Director

Address :

Rama Rukmini Villa, Plot No. F-10, Vasant Nagar Gogol, Margo – 403602, South Goa, India

Date of Birth/Age :

21.11.1988

Date of Appointment :

26.06.2013

DIN No.:

06391009

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	L27108GA1994PLC001666	KARTHIK INDUCTIONS LIMITED	Director	26/09/2013	19/10/2012	-	Active	NO
2	U14220TG2012PLC083824	KRUS TRADEX LIMITED	Director	25/10/2012	25/10/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2014

Names of Shareholders	No. of Shares
Anirudh Mundra	78400
Raghvendra Bhupal	338100
K R Infrastructures Limited	300900
Laxmi Gopala	176925

AS ON 31.03.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	23.13
Directors or relatives of Directors	50.89
Other top fifty shareholders	25.81
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturer of M S Ingots and M S Billets
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

dGENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

Not Available

Bankers :

State Bank of Mysore, Margo Branch, Ground Floor, Damodar Chambers, Near Baptista Road, Margo – 403601, Goa, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from banks	0.123	0.863
Term loan from others	80.914	87.275
SHORT TERM BORROWINGS
Loans repayable on demand	89.980	47.533
Total	171.017	135.671

Auditors :
Name :	D.V. Sarovar and Company Chartered Accountants
Address :	3/14, Indira Nagar Road, Hospet – 583201, Karnataka, India
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs. 10/- each	Rs. 17.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1442850	Equity Shares	Rs. 10/- each	Rs. 14.429 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	14.429	14.429	14.429
(b) Reserves & Surplus	33.688	31.366	27.801
(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)	48.117	45.795	42.230
(3) Non-Current Liabilities
(a) long-term borrowings	91.891	96.677	118.674
(b) Deferred tax liabilities (Net)	2.640	2.343	2.854
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.863	2.630	2.196
Total Non-current Liabilities (3)	97.394	101.650	123.724
(4) Current Liabilities
(a) Short term borrowings	92.280	49.833	67.131
(b) Trade payables	71.076	44.911	38.236
(c) Other current liabilities	27.828	28.553	25.268
(d) Short-term provisions	2.746	0.744	2.952
Total Current Liabilities (4)	193.930	124.041	133.587
TOTAL	339.441	271.486	299.541
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	36.584	11.327	11.697
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.554	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	24.995	24.995	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.988	4.983	4.983
(e) Other Non-current assets	5.177	0.000	0.000
Total Non-Current Assets	71.744	41.859	16.680
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	63.216	25.289	34.539
(c) Trade receivables	50.998	46.325	45.513
(d) Cash and cash equivalents	4.502	4.254	16.928
(e) Short-term loans and advances	148.981	153.759	185.881
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	267.697	229.627	282.861
TOTAL	339.441	271.486	299.541

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	684.389	712.138	707.208
		Other Income	14.462	17.727	18.754
		TOTAL (A)	698.851	729.865	725.962
Less	EXPENSES
		Cost of Materials Consumed	549.388	582.317	608.696
		Purchases of Stock-in-Trade	0.000	0.000	1.367
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(20.807)	1.756	(1.502)
		Employees benefits expense	12.655	9.915	9.049
		Other expenses	132.102	111.322	87.652
		TOTAL (B)	673.338	705.310	705.262
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.513	24.555	20.700
Less	FINANCIAL EXPENSES (D)		17.972	16.611	12.566
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.541	7.944	8.134
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.301	2.785	2.512
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		3.240	5.159	5.622
Less	TAX (H)		0.920	1.594	1.737
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		2.320	3.565	3.885
	Earnings / (Loss) Per Share (Rs.)		1.61	2.47	2.69

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.33	0.50	0.55
Operating Profit Margin (PBDIT/Sales)	(%)	3.72	3.45	2.93
Return on Total Assets (PBT/Total Assets}	(%)	1.03	2.10	1.88
Return on Investment (ROI) (PBT/Networth)		0.07	0.11	0.13
Debt Equity Ratio (Total Debt/Networth)		3.83	3.20	4.40
Current Ratio (Current Asset/Current Liability)		1.38	1.85	2.12

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	14.429	14.429	14.429
Reserves & Surplus	27.801	31.366	33.688
Net worth	42.230	45.795	48.117
long-term borrowings	118.674	96.677	91.891
Short term borrowings	67.131	49.833	92.280
Total borrowings	185.805	146.510	184.171
Debt/Equity ratio	4.400	3.199	3.828

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	707.208	712.138	684.389
		0.697	(3.897)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	707.208	712.138	684.389
Profit	3.885	3.565	2.320
	0.55%	0.50%	0.34%

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	No
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	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	10515121	28/07/2014	16,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH,STATE BANK STAFF TRAINING CENTRE, PATTO PLAZA, PANAJI, Goa - 403001, INDIA	C16537649
2	90075711	22/01/2014 *	177,500,000.00	STATE BANK OF MYSORE	MARGAO BRANCH, DAMAODAR CHAMBERS, MARGAO, Goa - 403601, INDIA	B94832052
3	90077148	14/07/1995	39,000,000.00	STATE BANK OF MYSORE	MARGAO BRANCH, DAMODAR CHAMBERS, MARGAO, Goa - 403601, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loan from others	10.854	8.540
SHORT TERM BORROWINGS
Loans repayable on demand	2.300	2.300
Total	13.154	10.840

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. 61.74
UK Pound	1	Rs. 92.71
Euro	1	Rs. 69.94

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	2
--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	YES
--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.