MIRA INFORM REPORT

Report No. :	309287
Report Date :	25.02.2015

IDENTIFICATION DETAILS

Name :	KAIVALLI ELECTRONICS PRIVATE LIMITED
Registered Office :	P.N.163/A/1 and 163/B, Phase-II, IDA, Cherlapalli, Hyderabad – 500051, Telangana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.02.1984
Com. Reg. No.:	01-004501
Capital Investment / Paid-up Capital :	Rs. 0.800 Million
CIN No.: [Company Identification No.]	U32300TG1984PTC004501
TAN No.: [Tax Deduction & Collection Account No.]	HYDK01689C
PAN No.: [Permanent Account No.]	AABCK2809H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Power Supplies Transformer, Inverters, Converters, Adaptors etc.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Management has failed to file its financials after FY 12, with the statutory authorities. As per available of FY12, the management has witnessed a drastic decline in its revenue base along with high total liabilities to tangible networth ratio. However, business is active. Payment terms are unknown. In view of lack of requisite information, the company can be considered for business dealings with great caution. Mr. Siva Prasad, the director and Mr. Shivudu Chartered accountant denied to provide any information of the subject to us.

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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Shivudu
Designation :	Chartered accountant
Contact No.:	91-9246530670
Date :	24.02.2014

Name :	Mr. Siva Prasad
Designation :	Director
Contact No.:	91-9849058800
Date :	24.02.2014

LOCATIONS

Registered Office/ Factory :	P.N.163/A/1 and 163/B, Phase-II, IDA, Cherlapalli, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27262627/ 27262628
Fax No.:	91-40-27260110
E-Mail :	cs@mic.co.in

DIRECTORS

As on 29.09.2012

Name :	Inaganti Siva Prasad
Designation :	Managing director
Address :	10-B, Jeera, Secunderabad - 500003, Andhra Pradesh, India
Date of Birth/Age :	05.08.1954
Date of Appointment :	01.12.2009
DIN No.:	01952132

Name :	Bhavani Inaganti
Designation :	Director
Address :	10-B, Jeera, Secunderabad - 500003, Andhra Pradesh, India
Date of Birth/Age :	15.02.1985
Date of Appointment :	20.07.2009
DIN No.:	02716203

KEY EXECUTIVES

Name :	Mr. Shivudu
Designation :	Chartered accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares	%age holding
Inaganti Siva Prasad	6513	81.39
Inaganti Sucharitha	1025	12.81
Sushma Chaudhary	464	5.80
Total	8002	100.00

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	94.20
Other top fifty shareholders	5.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Power Supplies Transformer, Inverters, Converters, Adaptors etc.

Products/ Services :

ITC Code No.	Product Descriptions
8504.00	Power Supplies Transformers

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Switch Mode Power Supplies	Not Applicable	6510	--
D.C. Linear Power Supplies	Not Applicable	18650	--
Inverters/ Converters	Not Applicable	2650	--
Transformers	Not Applicable	4250	--
Power Supplies	Not Applicable	--	11500
Laminations	Not Applicable	--	28063
Sets LED Display Module	Not Applicable	--	02

GENERAL INFORMATION

Suppliers :

• AS Technologies (Private) Limited
• MIC Electronics Limited
• Ascent Circuts Private Limited
• Digi Max Media Private Limited
• Gayathri Magnetic Devices
• Incap Private Limited
• Powertronics
• Ram Kumar Electrotech Private Limited

Customers :

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

No. of Employees :

Information declined by the management

Bankers :

UCO Bank, 62, M G Road, Secunderabad - 500003, Andhra Pradesh, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term borrowings
Working capital loan	24.690	2.964
Total	24.690	2.964

Banking Relations :	--
Auditors :
Name :	Subrahmanyam and Sivudu Chartered Accountants
Address :	#1-2-27, Gaganmahal Road, Domalguda, Hyderabad – 500027, Andhra Pradesh, India
Tel No.:	91-40-2763742840-27632141
Mobile No.:	91-9246530670
E-Mail :	passivudul@rediffmail.com passivudu@gmail.com
PAN N Income-tax PAN of auditor or auditor's firm :	AAGFS7351E
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,002	Equity Shares	Rs. 100/- each	Rs. 0.800 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.800	0.800
(b) Reserves & Surplus	1.512	1.732
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2.312	2.532
(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	0.064	0.032
Total Non-current Liabilities (3)	0.064	0.032
(4) Current Liabilities
(a) Short term borrowings	24.690	2.964
(b) Trade payables	105.584	88.644
(c) Other current liabilities	22.394	17.802
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	152.668	109.410
TOTAL	155.044	111.974
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.358	3.716
(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)	0.029	0.015
(d) Long-term Loan and Advances	2.401	1.097
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	5.788	4.828
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	127.215	105.999
(c) Trade receivables	21.261	0.838
(d) Cash and cash equivalents	0.780	0.309
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.000	0.000
Total Current Assets	149.256	107.146
TOTAL	155.044	111.974

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.800
2] Share Application Money		0.000
3] Reserves & Surplus		1.737
4] (Accumulated Losses)		0.000
NETWORTH		2.537
LOAN FUNDS
1] Secured Loans		1.800
2] Unsecured Loans		4.240
TOTAL BORROWING		6.040
DEFERRED TAX LIABILITIES		0.234
TOTAL		8.811
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.124
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	112.230
	Sundry Debtors	16.614
	Cash & Bank Balances	0.813
	Other Current Assets	0.000
	Loans & Advances	0.929
Total Current Assets		130.586
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	115.101
	Other Current Liabilities	10.478
	Provisions	0.320
Total Current Liabilities		125.899
Net Current Assets		4.687
MISCELLANEOUS EXPENSES		0.000
TOTAL		8.811

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2012	31.03.2011
	SALES
	Income	46.058	145.569
	Other Income	0.110	0.095
	TOTAL (A)	46.168	145.664
Less	EXPENSES
	Cost of Materials Consumed	41.294	141.112
	Employees benefits expense	0.463	1.979
	Other expenses	2.002	1.938
	TOTAL (B)	43.759	145.029
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2.409	0.635
Less	FINANCIAL EXPENSES (D)	2.286	0.465
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	0.123	0.170
Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.358	0.423
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(0.235)	(0.253)
Less	TAX (I)	(0.015)	(0.249)
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(0.220)	(0.004)
	Earnings / (Loss) Per Share (Rs.)	(0.28)	(0.01)

	PARTICULARS		31.03.2010
	SALES
		Income	18.901
		Other Income	2.051
		TOTAL	20.952
Less	EXPENSES
		Cost of goods sold	16.513
		Salaries and Wages	2.517
		Jobwork and Fabrication	0.017
		Transport and Freight	0.147
		Rates and Taxes	0.130
		Bank charges	0.122
		Excise Duty	0.000
		Interest CC	0.276
		MD Remuneration	0.000
		Office maintenance	0.046
		Security Services	0.080
		Vehicle Maintenance	0.064
		Other Expenses	0.530
		TOTAL	20.442
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		0.510
Less/ Add	DEPRECIATION/ AMORTISATION		0.503
	PROFIT/ (LOSS) BEFORE TAX		0.007
Less	TAX		0.041
	PROFIT/ (LOSS) AFTER TAX		(0.034)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.717
	BALANCE CARRIED TO THE B/S		1.683
	IMPORTS		0.661

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PAT / Sales)	(%)	(0.48)	0.00	0.18
Operating Profit Margin (PBIDT/Sales)	(%)	5.23	0.44	NA
Return on Total Assets (PBT/Total Assets}	(%)	(0.15)	(0.23)	0.01
Return on Investment (ROI) (PBT/Networth)		(0.10)	(0.10)	0.00
Debt Equity Ratio (Total Debt /Networth)		10.68	1.17	2.38
Current Ratio (Current Asset/Current Liability)		0.98	0.98	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.800	0.800
Reserves & Surplus	1.732	1.512
Net worth	2.532	2.312
long-term borrowings	0.000	0.000
Short term borrowings	2.964	24.690
Total borrowings	2.964	24.690
Debt/Equity ratio	1.171	10.679

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	145.569	46.058
		(68.360)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	145.569	46.058
Profit	(0.004)	(0.220)
	0.00%	(0.48%)

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	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	No
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90130625	26/03/2014 *	40,000,000.00	JM FINANCIAL ASSET RECONSTRUCTION COMPANY PRIVATE LIMITED	7TH FLOOR, CNERGY,, APPASAHEB MARATHE MARG, PRABH ADEVI, MUMBAI, MAHARASHTRA - 400025, INDIA	C24938615
2	90127510	27/02/1992	3,000,000.00	STATE BANK OF INDIA	SECUNDERABAD BRANCH, PATNY CIRCLE, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
3	90125479	02/01/2003 *	1,555,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
4	90129093	20/03/1985	1,555,000.00	STATE BANK OF INDIA	SECUNDERABAD BRANCH, PATNY CIRCLE, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
5	90125474	02/11/1994 *	1,555,000.00	STATE BANK OF INDIA	SECUNDERABAD BRANCH, PATNY CIRCLE, SECUNDERABAD, ANDHRA PRADESH, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office Equipments

· Generator

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 records 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.62.28
UK Pound	1	Rs.96.21
Euro	1	Rs.70.60

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.