MIRA INFORM REPORT

Report Date :

28.04.2012

IDENTIFICATION DETAILS

Name :	LEAKLESS GASKET INDIA PRIVATE LIMITED
Registered Office :	Plot No. 124, Sector – 6, Industrial Growth Centre, HSIDC Bawal, Rewari – 123501, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.11.2005
Com. Reg. No.:	05-035931
Capital Investment/ Paid-up Capital:	Rs. 84.459 Millions
CIN No.: [Company Identification No.]	U34300HR2005PTC035931
TAN No.: [Tax Deduction & Collection Account No.]	RTKL01068E
PAN No.: [Permanent Account No.]	AABCL1517D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automotive Gaskets, Non asbestos sheet gaskets, Industrial gaskets, Non asbestos cut gaskets and Non metallic gaskets.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Plot no. 124, Sector – 6, Industrial growth centre, HSIDC Bawal, Rewari – 123501, Haryana, India
Tel. No.:	91-1284-264064 / 264074
Fax No.:	91-1284-264094
E-Mail :	masami@leaklessgasket.com

DIRECTORS

As on 30.09.2011

Name :	Shinya Miyamoto
Designation :	Director
Address :	3 - 20 - C 905, Naka – Rai, Tokorozawa – City, Saitama, Prefecture Japan, Japan - 359-0041
Date of Birth/Age :	20.04.1934
Date of Appointment :	23.12.2005
Din No.:	00503065

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29199HR2005PTC035653	NIPPON LEAKLESS TALBROS PRIVATE LIMITED	Director	18-03-05	18-03-05	Active	NO
2	U34300HR2005PTC035931	LEAKLESS GASKET INDIA PRIVATE LIMITED	Director	23-12-05	23-12-05	Active	NO

Name :	Akira Komatsu
Designation :	Director
Address :	6-24-3, Koyama, Shinagawa – Ku, Tokyo, Japan
Date of Birth/Age :	15.03.1947
Date of Appointment :	25.11.2005
Din No.:	00729454

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29199HR2005PTC035653	NIPPON LEAKLESS TALBROS PRIVATE LIMITED	Director	18-03-05	18-03-05	Active	NO
2	U34300HR2005PTC035931	LEAKLESS GASKET INDIA PRIVATE LIMITED	Director	25-11-05	25-11-05	Active	NO

Name :	Kiyoyuki Saito
Designation :	Director
Address :	14, Aspen Green, Nirvana Country, Gurgoan – 122001, Haryana, India
Date of Birth/Age :	16.03.1965
Date of Appointment :	15.06.2011
Din No.:	00641473

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34300HR2005PTC035931	LEAKLESS GASKET INDIA PRIVATE LIMITED	Alternate director	15-06-11	29-06-06	-	Active	NO
2	U29199HR2005PTC035653	NIPPON LEAKLESS TALBROS PRIVATE LIMITED	Managing director	01-04-10	11-03-10	17-03-12	Active	NO

KEY EXECUTIVES

Name :	Mrs. Tanvi Sahu
Designation :	Secretary
Address :	House No. 2058, Mahavir Street, Bahadurgarh Road, Delhi – 110006, India
Date of Birth/Age :	02.03.1987
Date of Appointment :	01.04.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
US Leakless Inc., USA	8361409
NKL Engineering Corporation, Japan	84459
Total	8445868

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automotive Gaskets, Non asbestos sheet gaskets, Industrial gaskets, Non asbestos cut gaskets and Non metallic gaskets.

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
Non – Asbestors Gasket Jointing Sheets	Kgs	1450000	1450000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Japan Bank of International Corporation, Japan
• HDFC Bank, India

Facilities :

Secured Loans	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Loan from Japan Bank of International Corporation	116.273	134.580
Car Loan from HDFC Bank	0.095	0.453
Total	116.368	135.033
Unsecured Loans	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From Others	68.456	70.000
Total	68.456	70.000

Banking Relations :	--
Auditors :
Name :	Ranag and Associates Chartered Accountants
Address :	B – 53, Yash Path, Tilak Nagar, Jaipur – 302004, Rajasthan, India
Pan No.:	AAJFA7371D
Holding Company:	U S Leakless Inc., USA
Associates :	Nippon Leakless Corporation, Japan Thai Leakless Corporation, Japan NP Leakless SDN, BHD, Japan Vietnam Leakless Company Limited, Vitnam P T Indonesia Leakless Gasket, Indonesia Leakless Do Brasil Ltda., Brasil Nippon Leakless Talbros Private Limited, Bawal Nippon Leakless Talbros Private Limited, Haridwar

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8445868	Equity Shares	Rs.10/- each	Rs. 84.459 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		84.459	84.459	84.459
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		257.660	109.876	19.374
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		342.119	194.335	103.833
LOAN FUNDS
1] Secured Loans		116.368	135.033	168.733
2] Unsecured Loans		68.456	70.000	72.800
TOTAL BORROWING		184.824	205.033	241.533
DEFERRED TAX LIABILITIES		45.370	44.287	43.281
TOTAL		572.313	443.655	388.647
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		320.552	309.508	298.760
Capital work-in-progress		0.000	0.000	0.351
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	63.755	43.782	31.069
	Sundry Debtors	215.787	185.798	93.101
	Cash & Bank Balances	79.526	52.269	41.650
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	133.731	61.788	35.925
Total Current Assets		492.799	343.637	201.745
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	117.527	154.066	95.676
	Other Current Liabilities	5.729	5.857	3.846
	Provisions	117.845	49.693	12.876
Total Current Liabilities		241.101	209.616	112.398
Net Current Assets		251.698	134.021	89.347
MISCELLANEOUS EXPENSES		0.063	0.126	0.189
TOTAL		572.313	443.655	388.647

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Turnover		691.800	466.600	330.900
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		232.631	139.070	89.567
DEPRECIATION/ AMORTISATION		15.660	10.997	9.593
PROFIT BEFORE TAX		216.971	128.073	79.974
TAX		69.187	36.564	12.329
PROFIT AFTER TAX		147.784	90.502	32.187
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	268.899	296.670	223.671
	Consultancy	0.000	0.000	0.154
	Sale of Plant and Machinery	0.000	0.000	0.051
TOTAL EARNINGS		268.899	296.670	223.876
IMPORTS
	Raw Materials	217.826	200.799	155.377
	Capital Goods	2.528	24.844	6.123
	Others	0.266	0.215	0.223
TOTAL IMPORTS		220.620	225.858	161.723
Earnings Per Share (Rs.)		17.50	10.72	3.81

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	26.68	19.61	15.99
Return on Investment (ROI) (PBT/Networth)		0.63	0.66	0.77
Debt Equity Ratio (Total Liability/Networth)		1.38	2.36	1.02
Current Ratio (Current Asset/Current Liability)		2.04	1.64	1.79

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions 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	Yes
9. Name of person contacted	No
10. Designation of contact person	No
11. Turnover of firm for last one year	Yes
12. Profitability for last one year	Yes
13. Reasons for variation <> 20%	----------
14. Estimation for coming financial year	No
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	No
20. Export / Import details	No
21. Market information	---------
22. Litigations that the firm / promoter involved	---------
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

Fixed Assets:

• Freehold Land
• Factory Building
• Plant and Machinery
• Office Equipments
• Furniture and Fixtures
• 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. 52.68
UK Pound	1	Rs. 85.12
Euro	1	Rs. 69.38

INFORMATION DETAILS

Report Prepared by :

ACH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		50

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.