MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	HITACHI INDIA PRIVATE LIMITED (w.e.f. 23.03.2010)
Formerly Known As :	HITACHI INDIA TRADING PRIVATE LIMITED
Registered Office :	304-306, ABW Elegance Tower, Jasola District Center, New Delhi-110025
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.02.1997
Com. Reg. No.:	55-085419
Capital Investment / Paid-up Capital :	Rs.308.969 millions
CIN No.: [Company Identification No.]	U52190DL1997PTC085419
TAN No.: [Tax Deduction & Collection Account No.]	DELH02181E/ DELH02180D
PAN No.: [Permanent Account No.]	AAACH2856G/ AAACH8121J
Legal Form :	Private Limited Liability Company
Line of Business :	Marketing and Selling of Products Ranging from Power and Industrial Systems, Industrial Components and Equipment, Air Conditioning and Refrigeration Equipment to International Procurement of software, materials and components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 938000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established and reputed company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can considered normal for business dealings at usual trade terms and condition.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 31-03-2012.

LOCATIONS

Registered Office :	304-306, ABW Elegance Tower, Jasola District Center, New Delhi-110025, India
Tel. No.:	91-11-40605252
Fax No.:	91-11-40605253
E-Mail :	rajiv@hitachi.co.in narain@hitachi.co.in
Website :	www.hitachi.co.in
Branches 1 :	Unit 103, 1st Floor, Shah Sultan Complex, No 17, Cunningham Road, Bangalore 560 052, India
Tel. No.:	91- 80-22386986 / 987 / 984
Fax No.:	91-80-22386988
Branches 2 :	302, Ascot Centre, Next to Hotel Le Royal Meridien, Sahar Road, Andheri (East), Mumbai 400 099, India
Tel. No.:	91-22-28215625 / 5892
Fax No.:	91-22-28212610
Branches 3 :	206, Apeejay House, No.12, Haddows Road, Nungambakkam, Chennai 600 006, India
Tel. No.:	91-44-28213108 / 3109
Fax No.:	91-44-28213110

DIRECTORS

As on 22.06.2011

Name :

Yukio Toyoshima

Designation :

Director

Address :

Casa Kokubunji, # 605, 24-5, Minamicho, 3 Chome Kokubunji-SHI, Tokyo-1850021, Japan

Date of Birth/Age :

25.11.1955

Date of Appointment :

01.04.2010

DIN No.:

03058965

Name :

Ichiro Iino

Designation :

Managing director

Address :

2-18-14-117, Tamagawadai, Setagaya-KU, Tokyo-1580096, Japan

Date of Birth/Age :

26.09.1956

Date of Appointment :

01.04.2011

DIN No.:

03498961

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	U52190DL1997PTC085419	HITACHI INDIA PRIVATE LIMITED	Managing director	01/04/2011	01/04/2011	-	Active	NO
2	U45400DL2008FTC173227	HITACHI LIFT INDIA PRIVATE LIMITED	Director	06/07/2011	19/04/2011	-	Active	NO
3	U72200GJ1990PTC013246	HITACHI HI-REL POWER ELECTRONICS PRIVATE LIMITED	Nominee director	28/09/2011	28/09/2011	-	Active	NO

Name :

Ravi Narain

Designation :

Whole-time director

Address :

B-136, Sector 30 , Noida-201303, Uttar Pradesh, India

Date of Birth/Age :

14.01.1962

Date of Appointment :

06.05.2010

DIN No.:

00740058

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	U74999DL2007PTC164519	SPLENDOR HEIGHTS RESIDENCES PRIVATE LIMITED	Director	08/06/2007	08/06/2007	07/05/2010	Strike off	NO
2	U72900DL2002PTC115543	BIZENETS TECHNOLOGY SERVICES PRIVATE LIMITED	Director	01/07/2007	01/07/2007	25/07/2009	Active	NO
3	U52190DL1997PTC085419	HITACHI INDIA PRIVATE LIMITED	Whole-time director	06/05/2010	06/05/2010	-	Active	NO

Name :

Kiyoshi Kinugawa

Designation :

Director

Address :

7-20-2, Hiyoshidai, Togane-Shi, Chiba Ken, Japan 2830803

Date of Birth/Age :

27.02.1951

Date of Appointment :

01.04.2011

DIN No.:

03498972

Name :

Masahide Tanigaki

Designation :

Director

Address :

3-4-29, Miyazaki, Miyamae-Ku, Kawasaki-2160033, Japan

Date of Appointment :

01.04.2011

DIN No.:

03518381

KEY EXECUTIVES

Name :	Devika Khandelwal
Designation :	Secretary
Address :	Flat No 719, Sarvahit Appartments, Sector-17, Pocket A, Dwarka-110078, Delhi, India
Date of Appointment :	01.05.2010
PAN No.:	BIBPK1871P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.06.2011

Names of Shareholders	No. of Shares
Hitachi Asia Limited, Singapore	6475002
Hitachi Home Electron ICS Asia (S0 Pte. Limited, Singapore	1
Total	6475003

Equity Share Break up (Percentage of Total Equity)

As on 22.06.2011

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 :

Marketing and Selling of Products Ranging from Power and Industrial Systems, Industrial Components and Equipment, Air Conditioning and Refrigeration Equipment to International Procurement of software, materials and components.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	DELOITTE HASKINS & SELLS Chartered Accountants
Address :	Deloitte Haskins and Sells, 7th Floor, Building 10B, DLF Cyber City Complex, DLF City Phase II, Gurgaon – 122002, Haryana, India
PAN No.:	AABFD2095B
Holding Company:	Hitachi Asia Limited, Singapore
Enterprise having Substantial Interest in the Company:	Hitachi Ltd, Japan
Fellow subsidiaries and other companies which does not exercise control or significant influence over the company:	· Hitachi Home Electronics Asia (S) Pte. Limited, Singapore · Hitachi Asia Thailand Company Limited, Thailand · Renesas Technology Singapore Pte. Limited · Hitachi Displays Limited · Luvata Hitachi Cable Limited, Thailand · Hitachi Business International Limited, Japan · Hitachi Appliance Inc, Singapore · Hiatchi Global Storage Technologies Asia Pte Limited, Singapore · Hitachi Plant Technologies Limited, Japan · Japan AE Power Systems Corporation, Japan · Hitachi Industrial Equipment system company Limited, Japan · Hitachi Koki India Limited · Hitachi Omron Terminal Solutions Corp, Japan · Saim HPM Company Limited, India Branch office · Hitachi Transport Systems India Liaison Office · Hitachi Chemical (Thailand) Company Limited , Thailand · Hitachi Life Limited, Japan · Hitachi Research Institute, Japan · Hitachi Management Partner Corp, Japan · Hitachi Automotive Systems Limited, Japan · Hitachi Capital Singapore PTE Limited, Singapore · Hitachi Data Systems Private Limited, Singapore · Hitachi Limited, BBMB Project Office

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6475003	Equity Shares	Rs.10/- each	Rs.64.750 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		64.750	64.750	47.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		169.944	115.000	74.989
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		234.694	179.750	122.739
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		234.694	179.750	122.739
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.877	12.572	20.269
Capital work-in-progress		2.287	0.000	0.000
INVESTMENT		15.500	15.500	0.000
DEFERRED TAX ASSETS		4.487	3.854	2.318
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.106	6.297	0.242
	Sundry Debtors	30.040	21.708	24.270
	Cash & Bank Balances	161.431	125.215	79.327
	Other Current Assets	0.014	0.010	0.005
	Loans & Advances	31.188	29.034	32.299
Total Current Assets		225.779	182.264	136.143
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.832	17.434	11.220
	Other Current Liabilities	4.765	13.222	16.868
	Provisions	3.639	3.784	7.903
Total Current Liabilities		20.236	34.440	35.991
Net Current Assets		205.543	147.824	100.152
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		234.694	179.750	122.739

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	387.128	389.554	333.484
		Other Income		15.520	11.792
		TOTAL (A)	387.128	405.074	345.276
Less	EXPENSES
		Cost of Materials		30.553	5.102
		Employees Remuneration and Benefits		120.803	110.332
		Administrative and Other Expenses		173.842	162.310
		TOTAL (B)		325.198	277.744
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		304.387 (Including Finance Expenses, Depreciation and Other Expenses)	79.876	67.532
Less	FINANCIAL EXPENSES (D)			0.135	0.263
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			79.741	67.269
Less/ Add	DEPRECIATION/ AMORTISATION (F)			9.021	8.562
	PROFIT BEFORE TAX (E-F) (G)		82.741	70.719	58.707
Less	TAX (I)		27.797	20.831	25.225
	PROFIT AFTER TAX (G-I) (J)		54.944	49.888	33.482
	BALANCE CARRIED TO THE B/S		54.944	49.888	33.482
	EARNINGS IN FOREIGN CURRENCY		319.191	336.250	293.251
	IMPORTS		N.A	31.968	5.344
	Earnings Per Share (Rs.)		8.49	10.10	7.01

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	14.19	12.32	9.70
Net Profit Margin (PBT/Sales)	(%)	NA	18.15	17.60
Return on Total Assets (PBT/Total Assets}	(%)	35.56	36.30	37.53
Return on Investment (ROI) (PBT/Networth)		0.35	0.39	0.48
Debt Equity Ratio (Total Liability/Networth)		0.09	0.19	0.29
Current Ratio (Current Asset/Current Liability)		11.16	5.29	3.78

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	Yes
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	No
24]	Banking facility details	No
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	No

NOTE:

The Registered office of the company has been shifted from 10^th Floor Hindustan Time Building, K G Marg, New Delhi-110001, India to the present address w.e.f. 15.04.2008

BACKGROUND

Hitachi India Private Limited (‘the Company’) was incorporated in India on February 27, 1997 for undertaking activities of general trading restricted to exports and imports, procurement and supply of materials and equipment required for industrial projects investment in India. The company is a closely held company with 6,475,002 equity shares held by Hitachi Asia Limited, Singapore and the balance one equity share held by Hitachi Home Electronics Asia (S) Pte Limited, Singapore.

OPERATION HIGHLIGHTS:

The company, in its fourteenth year of operations, earned its revenue from Service fees, Commission and Sale of goods amounting to Rs. 387.128 Millions. A Sum of Rs 54.944 Millions is being carried forward to the balance sheet.

SCHEME OF AMALGAMATION:

The board of directors of the company in their meeting held on June 18, 2008 approved the amalgamation of Hitachi India Private Limited with the Company under section 394 of the Companies Act, 1956. Hitachi India Private Limited was incorporated in India on February 3, 1997 for investment in downstream joint venture projects.

Pursuant to the scheme of amalgamation of erstwhile Hitachi India Private Limited with the Company, as sanctioned by the Hon’ble High Court of Delhi on August 3, 2009, the assets and liabilities of erstwhile Hitachi India Private Limited were transferred to and vested in the Company with retrospective effect from April,2008 being the appointed date for accounting purpose. The scheme has, accordingly been given effect to in these accounts.

The amalgamation has been accounted for under the ‘pooling of Interest’ method as prescribed by Accounting Standard 14 on Accounting for Amalgamations issued by the Institute of Chartered Accountants of India subject to the specific stipulations in the scheme of amalgamation as approved by the High Court. Accordingly the assets and liabilities of erstwhile Hitachi India Private Limited as at April 1 , 2008 have been taken over at the book values subject to adjustments made for the differences in the accounting policies, and/or specified in the scheme of amalgamation.

The aggregate face value of equity shares allotted to the shareholders of the erstwhile Hitachi India Private in terms of the scheme of amalgamation has been credited to Share Capital of the company in Schedule A. The equity shares of the company held by Hitachi India Private Limited have not been considered as these have been cancelled pursuant to the cancellation of investments as specified in the scheme of amalgamation.

The accumulated loss of Hitachi India Private Limited as at March 31, 2009 aggregating to Rs.9.878 Millions has been adjusted to the opening balance of Profit and Loss account of the company. Subsequent to the amalgamation, investments held by Hitachi India Private Limited in other companies were tested for impairment as at Mach 31, 2010 and provision for impairment of impairment of investments aggregating to Rs.10.000 Millions recognized in the prior years and now no longer required was written back to Other Income in Schedule H.

FIXED ASSETS:

· Furniture and Fixtures

· Plant and Machinery

· Computers

· Vehicles

· Leasehold Improvements

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.52.70
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.