MIRA INFORM REPORT

Report Date :

24.01.2011

IDENTIFICATION DETAILS

Name :	INDIA JAPAN LIGHTING PRIVATE LIMITED
Registered Office :	Aalim Centre, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.12.1996
Com. Reg. No.:	18-37208
CIN No.: [Company Identification No.]	U40109TN1996PTC037208
TAN No.: [Tax Deduction & Collection Account No.]	CHEI04150G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Head Lamps, Tail Lamps, Rear Lamps, Licence Plate Lamps, Front Turn Signal Lamps, Dome Lamps, Head Lamps with Bliners and Automotive Lighting Equipments.

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

Maximum Credit Limit :	USD 1462056
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Profitability of the company is under severe pressure. There appears to be some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow. Company 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Aalim Centre, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-28110063 / 28110074
Fax No.:	91-44-28115624
E-Mail :	tvvenkat@ijl.co.in
Factory :	No. 1, Puduchathram, (Via) Tirumazhisai, Thiruvellore High Road, Chennai – 601107, India.

DIRECTORS

As on 28.06.2010

Name :	Mr. T K Balaji
Designation :	Director
Address :	34, Poes Garden, Chennai – 600 086, Tamilnadu, India
Date of Birth/Age :	12.07.1948
Date of Appointment :	27.12.1996
Name :	Mr. K R Anandakumaran Nair
Designation :	Director
Address :	7, Stone Link Avenue, Raja Annamalaipuram, Chennai – 600 028, Tamilnadu, India
Date of Birth/Age :	01.12.1939
Date of Appointment :	27.12.1996
Name :	Mr. Arvind Balaji
Designation :	Director
Address :	34, Poes Garden, Chennai – 600 086, Tamilnadu, India
Date of Birth/Age :	08.12.1974
Date of Appointment :	16.06.2006
Name :	Mr. Hiroshi Mihara
Designation :	Director
Address :	2-2-9, Kitamgome Ohtaku, Tokyo, Japan - 1430021
Date of Birth/Age :	19.02.1955
Date of Appointment :	10.09.2005
Name :	Mr. K Yamamoto
Designation :	Director
Address :	108-01, Kikkawa, Shimizu-ku, Shiazuoka-Shi, Japan - 4240055
Date of Birth/Age :	30.06.1967
Date of Appointment :	26.03.2007
Name :	Mr. T Suzuki
Designation :	Director
Address :	B3, Ceebros Malikai Apartments, Pycrofts Garden Road, Chennai – 600 034, Tamilnadu, India
Date of Birth/Age :	09.01.1951
Date of Appointment :	01.10.2007
Name :	Mr. Yutaka Mikami
Designation :	Whole Time Director
Address :	Flat No. B-122, Pilot Court, Essel Tower, M G Road, Gurgaon – 122 002, Haryana, India
Date of Birth/Age :	28.09.1961
Date of Appointment :	30.06.2009

KEY EXECUTIVES

Name :	Mr. T V Venkataramanan
Designation :	Secretary
Address :	New No. 27 (Old No. 10) Vyasar Street, East Tambaram, Chennai – 600 059, Tamilnadu, India
Date of Birth/Age :	25.05.1968
Date of Appointment :	10.07.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 28.06.2010)

Names of Shareholders	No. of Shares
Koito Manufacturing Company Limited, Japan	35000000
Lucas TVS Limited, Chennai	35000000
Total	70000000

Equity share breakup (percentage of total equity)

(As on 28.09.2008)

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	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Head Lamps, Tail Lamps, Rear Lamps, Licence Plate Lamps, Front Turn Signal Lamps, Dome Lamps, Head Lamps with Bliners and Automotive Lighting Equipments.

Products :

Product Description	ITC Code
Head Lamps	851220.01
Tail Lamps	851220.01
Head Lamp with Blinkers	851220.01
Automotive Lighting Equipments	851220.02

PRODUCTION STATUS

(As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity @	Actual Production
Head Lamps	Nos.	--	--	1331838
Rear Lamps	Nos.	3900000	3200000	737509
Others **	Nos.	(3900000)	(3200000)	253841
Total				2323188

@ As certified by management and relied upon by the auditors being technical matter.

*excluding bought out items.

GENERAL INFORMATION

Bankers :

Bank of Baroda

IF Branch, 252 A, TTK Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

Facilities :

Secured Loans	(As on 31.03.2010 Rs. in millions
From Banks
Term Loans *	656.500
Cash Credit **	54.905
Total	711.405

* Secured by Hypothecation of Plant and Machinery

** Secured by Hypothecation of Stocks and Book Debts

Unsecured Loans	(As on 31.03.2010) Rs. in millions
Loans and Advances from Banks	221.387
Total	221.387

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	ASV Ramana Towers, No. 52, Venkatnarayan Road, T Nagar, Chennai – 600 017, Tamilnadu, India
Holding Company :	· Koito Manufacturing Company Limited, Japan · Lucas TVS Limited, Chennai

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	Rs.10/- each	Rs.700.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		700.000	700.000	400.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(334.486)	(354.783)	(196.253)
NETWORTH		365.514	345.217	203.747
LOAN FUNDS
1] Secured Loans		711.405	875.787	603.300
2] Unsecured Loans		221.387	249.875	399.378
TOTAL BORROWING		932.792	1125.662	1002.678
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1298.306	1470.879	1206.425
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1323.128	1440.780	1077.161
Capital work-in-progress		9.437	3.186	231.907
INVESTMENT		2.100	2.100	2.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	124.095	136.536	138.207
	Sundry Debtors	125.974	145.223	85.198
	Cash & Bank Balances	52.610	107.434	5.808
	Other Current Assets	100.860	0.000	0.000
	Loans & Advances	0.000	112.979	205.385
Total Current Assets		403.539	502.172	434.598
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	433.898	474.859	537.841
	Provisions	6.000	2.500	1.500
Total Current Liabilities		439.898	477.359	539.341
Net Current Assets		(36.359)	24.813	(104.743)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1298.306	1470.879	1206.425

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Sales Turnover		2178.198	1424.231	1329.179
Other Income		29.772	32.013	14.740
Total Income		2207.970	1456.244	1343.919
Profit/(Loss) Before Tax		20.296	(150.718)	(262.485)
Provision for Taxation		0.000	2.537	(25.976)
Profit/(Loss) After Tax		20.296	(153.255)	(236.509)
Imports :
	Raw Materials	299.279	229.188	164.984
	Components	308.269	208.426	195.344
	Capital Goods	8.969	81.990	92.574
	Consumables	3.225	1.628	1.618
Total Imports		619.742	454.520	521.232
Expenditures :
	Material Consumed	1365.563	924.680	891.222
	Employee Cost	183.428	101.665	134.490
	Manufacturing and Other Expenses	249.027	212.106	239.607
	Selling Expenses	87.612	171.615	61.620
	Interest and finance charges	108.008	57.901	121.745
	Depreciation & Amortization	194.034	138.437	158.278
	Other Expenditure	0.000	0.000	0.000
Total Expenditure		2187.672	1606.962	1606.404
Earnings Per Share (Rs.)		0.29	(3.80)	(5.91)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.91	(10.52)	(17.60)
Net Profit Margin (PBT/Sales)	(%)	0.93	(10.58)	(19.75)
Return on Total Assets (PBT/Total Assets}	(%)	1.17	(7.76)	(17.36)
Return on Investment (ROI) (PBT/Networth)		0.05	(0.44)	(1.29)
Debt Equity Ratio (Total Liability/Networth)		3.75	4.64	7.57
Current Ratio (Current Asset/Current Liability)		0.91	1.05	0.81

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Name of the company	INDIA JAPAN LIGHTING PRIVATE LIMITED
Presented By	A R Rajagopalan, Secretary
1) Date and description of instrument creating the change	04.10.2000 Instrument for hypothecation of Machinery.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.100.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of Machinery
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at 0.5% over Bank ‘PLR’ rate with a minimum of 12.5% p.a.
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda IF Branch, 252 A, TTK Road, Alwarpet, Chennai – 600 018
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Corporate identity number of the company	U40109TN1996PTC037208
Name of the company	INDIA JAPAN LIGHTING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Aalim Centre, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamilnadu, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Maruti Suzuki India Limited 11^th Floor, Jeevan Prakash, 25 Kasturba Gandhi Marg, New Delhi – 110 001, India
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	14.10.2008
Amount secured by the charge	Rs.39.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest 12.25% per annum · Terms of repayment As per repayment schedule determined by Maruti Suzuki India Limited · Margin Nil · Extent and Operation of the charge As mentioned in the deed of hypothecation
Particulars of the property charged	Model YC5 Type B – Body Mould, Lens Mould, Extension Mould, Gauges and Fixtures, Test Stands India Japan Lighting Private Limited, Plot No. 22 to 25, Sector VI, HSIDC Growth centre, Bawal Industrial Area, Rewari District, Haryana – 123 501.

INDIAN AUTOMOTIVE INDUSTRY :

The automobile sector was one of the severely affected sectors in the global meltdown of 2008. Thanks to the stimulus packages introduced by the Government in late 2008 and early 2009, the overall vehicle production during FY 2009-10 crossed 14 million (from previous years 11 million), reflecting 27% growth. Of this, passenger vehicles clocked 2.3 million (up by 25%), while commercial vehicles recorded 36% growth. The two – wheeler segment that crossed 10 millions showed 25% increase in volumes. The cash for clunkers incentive packages implemented in the North American and European markets also enabled the major OEMs to capitalize on the opportunity available outside India, where the overall automobile exports grew by 18% of which passenger vehicles registered 33 %increase.

PERFORMANCE REVIEW :

The Company, which currently operates in the passenger car domain, recorded sales growth of 53% during FY 2009-10. Sales to Maruti – Suzuki (MSIL), who continued to be the major OEM customer, constituted nearly two-third of the company’s turnover. A-Star , which was launched in October 2008, showed its fully year impact of sales in FY 2009-10, added by substantial volumes through exports to China and EU markets. Lamp sales for about 12 variants of A-Star model alonc formed 35 % of total turnover of the company. During the year, MISIL launched facelift of Zen Estilo in July 2009, which performed better than its earlier model as reflected in the lamp sales for this model grew by 26%. As for Tata Motors, while sales of lamps for Indica came down during the year, Indigo sales showed a modest improvement of 8%. With the renewed burst on spares segment, its sales rose by 25 % during the year. This amount for 16% of the company’s turnover.

Bawal Plant surpassed Chennai plant on volumes with its manufactured product sales accounting for nearly 60 % of total turnover. Sales ex-Chennai plant grew by 12 %. Consequent upon increase in volumes that led to capacity utilization of both the plant reaching 70 % the company improved its operating margins and made a profit before tax of 20.300 millions. The cash accruals for the year improved substantially from previous year’s Rs 5.000 million to Rs. 214 million.

BUSINESS DEVELOPMENT AND NEW PRODUCTS :

The company has entere the commercial vehicles segment by receiving orders from two commercial vehicle manufacturers for supply of headlamps for their LCV projects. Discussions are also in progress with another commercial vehicle manufacturer to secure orders for their LCV / HCV Applications. As for two- wheeler segment, two 2wheeler manufacturers have nominated the company to design, develop and supply headlamps and LED-based near combination lamps for their new motorcycles. As for passengers vehicles, the company has secured order from one OE manufacturer to design, develop and supply headlamps for their utility vehicle facelift model. As indicated in the last year’s report, the company is also fully geared to meet the scheduled launches of compact cars under development by Toyoto as well as Honda. Currently, the design and development work is in progress in respect of 17 new products set for launch during the next 2 years.

Tangible Assets

· Freehold Land

· Building

· Plant and Machinery

· Furniture, Fixtures and Office Equipments

· Vehicles

Intangible Assets

• Plant and Machinery includes Electrical Installations and Data Procesing Equipments
• The amount of exchange difference included in the cost of capital asset on account of Notification No.GSR 225(E) dated 31.03.23009 during the year is Rs. 13.022 million (2008-09 Rs. 33.702 millions) net of depreciation amounting to Rs. 1.245 millions (2008-09) Rs. 1.397 millions).
• Plant and Machinery is nety of subsidy received from Govt. of Tamilnadu in the year 2006-07 Rs. 0.276 millions.
  

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.45.70
UK Pound	1	Rs.72.78
Euro	1	Rs.61.65

SCORE & RATING EXPLANATIONS

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