MIRA INFORM REPORT

Report Date :

15.10.2011

IDENTIFICATION DETAILS

Name :	HIROTEC INDIA PRIVATE LIMITED (w.e.f.24.02.2010)
Formerly Known As :	KGTESCO ENGINEERING SERVICES PRIVATE LIMITED
Registered Office :	365 KGCAMPUS, Saravanampatti, Coimbatore-641018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.05.2005
Com. Reg. No.:	011837
Capital Investment / Paid-up Capital :	Rs.37.398 Millions
CIN No.: [Company Identification No.]	U72200TZ2005PTC011837
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing And Exporting of tig welding fixture, biw weld fixture, clamping pan and weld spot, also offering welding fixture design services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 134296
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The 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.

INFORMATION DENIED BY

Name :	Mr. Loganathan
Designation :	Accountant
Date :	15.10.2011

LOCATIONS

Registered Office :	365 KGCAMPUS, Saravanampatti, Coimbatore-641018, Tamilnadu, India
Tel. No.:	91-422-2667054
Fax No.:	91-422-2668325
E-Mail :	finance@hirotecindia.com
Factory 1 :	Plot No 27, A Block, Chakan MIDC Phase 1, Pune-410501, Maharashtra, India

DIRECTORS

AS ON 08.09.2011

Name :	Mr. Sridharan Srinivasalu
Designation :	Director
Address :	12 Palanisamy Naidu Street, Coimbatore-641018, Tamilnadu, India
Date of Birth/Age :	21.02.1961
Date of Appointment :	14.07.2005
Date of Cessation :	17.12.2009
Name :	Mr. Brian Geraro Mcginnity
Designation :	Director
Address :	660 Springview Drive, Rochester, Michigan-493078065
Date of Birth/Age :	12.07.1960
Date of Appointment :	06.10.2005
Name :	Mr. James Joseph Syeed
Designation :	Director
Address :	648N Perry Pontiag, Michigan-483421680
Date of Birth/Age :	29.09.1963
Date of Appointment :	06.10.2005
Name :	Mr. James Bernard Toeniskoetter
Designation :	Director
Address :	3666 Hollenshade Drive, Rochester Hills, Michigan-483063788
Date of Birth/Age :	20.08.1958
Date of Appointment :	06.10.2005
Name :	Mr. Brian Andrew Hopkins
Designation :	Director
Address :	1121 Lockwood Rd, Ortonville, Michigan-484629250
Date of Birth/Age :	03.12.1955
Date of Appointment :	29.01.2010

Name :	Mr.Ashok Bakthavatsalam
Designation :	Director
Address :	138, Race Course Road, Coibatore-641010, Tamilnadu, India
Date of Birth/Age :	03.02.1968
Date of Appointment :	14.07.2005
Date of Cessation :	17.12.2009

KEY EXECUTIVES

Name :	Mr. Loganathan
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 08.09.2011

Names of Shareholders	No. of Shares
Hirotec America Inc, United States	5992679
Astrum Contract Services LLC, United States	1
Total	5992680

AS ON 08.09.2011

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 :

Manufacturing And Exporting of tig welding fixture, biw weld fixture, clamping pan and weld spot, also offering welding fixture design services.

Products :

Item Code	Product Description
85249113	Computer Software
84795000	Roller Hemming Tools
82073000	Tools
84663020	Fixtures

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indusind Bank Limited, 652-656, Tristar Towers, Avinashi Road, Coimbatore-641037, Tamilnadu, India

· Axis Bank Limited, 1619 A, Cheran Plaza, Trichy Road, Coimbatore-641018, Tamilnadu, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Mizuho Corporate Bank Limited (Against letter of Credit from Mizuho Bank Limited, Hiroshima) (Amounts due within one year)	16.720	33.855
Cash Credit Facilities with Axis Bank Limited (Against letter of credit from Fifth Third Bank and hypothecation of book debts)	20.010	0.000
TOTAL	36.730	33.855
UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Hirotec America Inc (Holding Company) (Amounts due within one year Rs. Nil)	9.159	1.664
TOTAL	9.159	1.664

Banking Relations :
Auditors :
Name :	Deloitte Haskins And Sells – C. Rajagopal Chartered Accountant
Address :	Shanmugha Mnram, 41 Race Course, Coimbatore-641018, Tamilnadu, India
Ultimate Holding Company:	Hirotec Corporation, Japan
Holding Company :	Hirotec America Inc, United States
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3739800	Equity Shares	Rs.10/- each	Rs.37.398 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		37.398	14.198	14.198
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(3.824)	(5.303)	(8.419)
NETWORTH		33.574	8.895	5.779
LOAN FUNDS
1] Secured Loans		36.730	33.855	43.575
2] Unsecured Loans		9.159	1.664	1.892
TOTAL BORROWING		45.889	35.519	45.467
DEFERRED TAX LIABILITIES		2.589	3.483	4.420
TOTAL		82.052	47.897	55.666
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.377	22.386	28.118
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	15.142	10.726	14.594
	Cash & Bank Balances	10.480	6.688	12.328
	Other Current Assets	41.308	15.051	2.016
	Loans & Advances	39.061	12.133	6.842
Total Current Assets		105.991	44.598	35.780
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.544	5.532	1.070
	Other Current Liabilities	38.724	11.918	5.466
	Provisions	4.048	1.637	1.696
Total Current Liabilities		47.316	19.087	8.232
Net Current Assets		58.675	25.511	27.548
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		82.052	47.897	55.666

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	127.415	64.671	58.764
		Other Income	0.008	3.027
		TOTAL (A)	127.423	67.698	58.764
Less	EXPENSES
		Personal Expenses	46.829	24.810
		Administrative Expenses	71.631	32.130	NA
		TOTAL (B)	118.460	56.940
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.963	10.758	6.029
Less	FINANCIAL EXPENSES (D)		0.179	0.659	2.299
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.784	10.099	3.730
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.066	7.520	6.862
	PROFIT BEFORE TAX (E-F) (G)		0.718	2.579	(3.132)
Less	TAX (I)		(0.761)	(0.536)	1.106
	PROFIT AFTER TAX (G-I) (J)		1.479	3.115	(4.238)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5.303)	(8.418)	NA
	BALANCE CARRIED TO THE B/S		(3.824)	(5.303)	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	44.731	31.780	40.204
	TOTAL EARNINGS		44.731	31.780	40.204
	IMPORTS
		Purchases	4.561	2.788	0.000
		Services	0.000	0.231	0.000
		Capital Goods	0.068	0.020	0.000
	TOTAL IMPORTS		4.629	3.039	0.000
	Earnings Per Share (Rs.)		(1.02)	(3.74)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.16	4.60	(7.21)
Net Profit Margin (PBT/Sales)	(%)	0.56	3.98	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.55	3.85	(4.90)
Return on Investment (ROI) (PBT/Networth)		0.02	0.28	0.54
Debt Equity Ratio (Total Liability/Networth)		2.77	6.13	9.29
Current Ratio (Current Asset/Current Liability)		2.24	2.33	4.34

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors for Goods and Services
-Dues to Micro and Small Enterprises	1.011	0.304	0.000
-Other than dues to Micro and Small Enterprises	3.633	5.228	1.070
Total	4.544	5.532	1.070

Form 8:

This form is for	Creation of charge
Charge identification number of the modified	--
Corporate identity number of the company	U72200TZ2005PTC011837
Name of the company	Hirotec India Private Limited
Address of the registered office or of the principal place of business in India of the company	365 KGCAMPUS, Saravanampatti, Coimbatore-641018, Tamilnadu, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Axis Bank Limited, 1619A, Cheran Plaza, Trichy Road, Coimbatore-641018, Tamilnadu, India
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation of Current Assets (Stock and Bood Debts)
Date of instrument Creating the charge	22.11.2010
Amount secured by the charge	Rs.24.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1)Cc:Br+3.25%,2)Epc:Upto 180 Days-Br+2.50%;Beyond180 Days and Upto 270 Days- Br+7.50%3)Bill Disc- Br+3.25%(4)Fbd/Fbp:Demand Bills-Br+2.75%;Usance Bills Upto 90 Days-Br+2.5%, Beyond 90days-Bplr/Br+7.5%, Terms of Repayment 1. Cc : On Demand 2. Bill Discounting, Epc, Fbp/Fbd : On Due Dates 3 Ler Tenure : Covering Exposure For 6 Months 4.Lc Usance Period : Inland Lc - Maximum 90 Days; Import Lc - Maximum 180 Days 5 Bg Period :Maximum Upto 12 Months Including Claim Period Margin 1. Cc : Stock 25%, Book Debts 40% (Debtors Below 90 Days ) 2.Bill Discounting, Fbd/Fbp, Ler - Nil 3.Epc : 10 % On Raw Materials/Stock In Process/Finished Goods 4.Letter Of Credit : 10 % Cash Margin 5.Bank Guarantee :15 % Cash Margin (100 % Cash Margin For Disputed Liabilities) Extent and Operation of the charge This Charge Operates Secure The Loan Amount Of Rs.240.00 Lacs. Hypothecation Of Entire Current Assets Including Receivables Both Present And Future. Others NIL
Short particulars of the property charged	Hypothecation of All Current Assets Including Receivables of the Company
Date of latest modification prior to the present modification
Particulars of the present modification

Fixed Assets:

· Machinery

· Furniture And Fixtures

· Building

· Office Equipments

· Plant And Machinery

· Vehicles

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.49.06
UK Pound	1	Rs.77.41
Euro	1	Rs.67.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.