MIRA INFORM REPORT

Report Date :

03.04.2013

IDENTIFICATION DETAILS

Name :	ECOREA AND KURODA ELECTRIC INDIA PRIVATE LIMITED

Registered Office :	Plot No. H -1, Phase 2, Ranjangaon, MIDC Industrial Area, Taluka : Shirur, District Pune – 412 220, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	23.08.2010

Com. Reg. No.:	11-137175

Capital Investment / Paid-up Capital :	Rs. 984.090 millions

CIN No.: [Company Identification No.]	U31902PN2010PTC137175

TAN No.: [Tax Deduction & Collection Account No.]	PNEE02775D

PAN No.: [Permanent Account No.]	AACCE4801E

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing of Moulded Industrial Accessories of Plastics.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 3700000

Status :	Moderate

Payment Behaviour :	Slow but Correct

Litigation :	Clear

Comments :	Subject is a relatively new company having a moderate track record. There appears some accumulated losses recorded by the company. It has incurred loss from its operation during 2012. However, the capital base of the company is strong. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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 :	Plot No. H -1, Phase 2, Ranjangaon, MIDC Industrial Area, Taluka : Shirur, District Pune – 412 220, Maharashtra, India
Tel. No.:	91-2138-612114
Fax No.:	Not Available
E-Mail :	accounts@eki.co.in

DIRECTORS

As on 29.05.2012

Name :

Tae Young Jeong

Designation :

Director

Address :

Seokbong Ma-Eul Daedong Apt. 503-201 40-4, Sammun-Ri Jangyu-Myeon Gimhae-Si Gyeongsangnam-Do, Gimhae Si, Republic of Korea 621832

Date of Birth/Age :

21.06.1964

Date of Appointment :

25.08.2011

DIN No.:

03144992

Name :

Mr. Dong Woo Kang

Designation :

Managing Director

Address :

E-Pyenhansesang Apt 106-804 1333, Sinmun-Ri Jangyu-Myeon Gimhae-Si Gyeongsangnam-Do, Gimhae Si, Republic of Korea 106804

Date of Birth/Age :

14.11.1970

Date of Appointment :

25.08.2011

DIN No.:

03245142

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	U31902PN2010PTC137175	ECOREA AND KURODA ELECTRIC INDIA PRIVATE LIMITED	Managing director	25-08-11	23-08-10	-	Active	NO
2	U74900PN2011PTC138188	WOO-R ENTERPRISES PRIVATE LIMITED	Director	05-01-11	05-01-11	-	Active	NO

Name :

Mr. Ryo Ito

Designation :

Managing Director

Address :

1-20-11 Chitosedai Setagaya-Ku Tokyo, Tokyo, Japan 1570071

Date of Birth/Age :

30.11.1965

Date of Appointment :

25.08.2011

DIN No.:

03325172

Name :

Mr. Koichi Hosokawa

Designation :

Director

Address :

1-20-11 Chitosedai Setagaya-Ku Tokyo, Tokyo, Japan 1570071

Date of Birth/Age :

05.05.1957

Date of Appointment :

25.08.2011

DIN No.:

03527294

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.05.2012

Names of Shareholders		No. of Shares

Ecorea Industrial Limited, Korea		46252230
Kuroda Electric Company Limited, Japan		48220410
Tae Young Jeong		1968180
Kang Soo Yoon		1968180

TOTAL		98409000

As on 29.05.2012

Equity Share Break up (Percentage of Total Equity)

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	96.00
Directors or relatives of Directors	2.00
Other top fifty shareholders	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Moulded Industrial Accessories of Plastics.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Tokyo Mitsubishi

· ICICI Bank Limited


Banking Relations :	--

Auditors :
Name :	ASA and Associates Chartered Accountants
Address :	118, KS House, Shahpur Jat, New Delhi – 110 049, India
PAN No.:	AAAFA4690A

Holding Company :	· Kuroda Electric Limited, Japan

Ultimate Holding Company :	· Ecorea Industrial Limited, Korea

Fellow Subsidiary:	· Z Kuroda Thailand Limited, Thailand

CAPITAL STRUCTURE

As on 29.05.2012

Authorized Capital:

No. of Shares	Type	Value	Amount

98409000	Equity Shares	Rs. 10/- each	Rs.984.090 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount

98409000	Equity Shares	Rs. 10/- each	Rs.984.090 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		984.090	366.340
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(36.204)	(10.784)
NETWORTH		947.886	355.556
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		255.782	0.000
TOTAL BORROWING		255.782	0.000
DEFERRED TAX LIABILITIES		0.000	0.000

TOTAL		1203.668	355.556

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		685.376	119.131
Capital work-in-progress		287.406	4.211

INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		12.863	0.660

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.524	0.000
	Sundry Debtors	14.405	0.000
	Cash & Bank Balances	139.644	62.946
	Other Current Assets	86.116	0.000
	Loans & Advances	30.276	172.894
Total Current Assets		290.965	235.840
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.859	1.683
	Other Current Liabilities	52.662	1.932
	Provisions	0.421	0.671
Total Current Liabilities		72.942	4.286
Net Current Assets		218.023	231.554

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		1203.668	355.556

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	15.819	0.000
		Other Income	19.918	3.211
		TOTAL (A)	35.737	3.211

Less	EXPENSES
		Cost of raw materials and components consumed	17.667	0.000
		Purchases of stock-in-trade	2.309	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(7.125)	0.000
		Employee benefits expense	13.990	1.240
		Power and Fuel	3.414	0.000
		Rent	5.394	1.267
		Rates & Taxes	7.349	1.003
		Legal & Professional	2.396	2.807
		Other expenses	15.082	6.430
		TOTAL (B)	60.476	12.747

Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(24.739)	(9.536)

Less	FINANCIAL EXPENSES (D)		0.218	1.668

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(24.957)	(11.204)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.516	0.240

	Prior Period Expenses		0.150	0.000

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(37.623)	(11.444)

Less	TAX (H)		(12.204)	(0.660)

	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(25.419)	(10.784)

	Earnings/(Loss) Per Share (Rs.)		(0.26)	(0.29)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
PAT / Total Income	(%)	(71.12)	(3.35)

Net Profit Margin (PBT/Sales)	(%)	(2.38)	0.00

Return on Total Assets (PBT/Total Assets}	(%)	(3.85)	(3.22)

Return on Investment (ROI) (PBT/Networth)		(0.03)	(0.03)

Debt Equity Ratio (Total Debt/Networth)		0.27	0.00

Current Ratio (Current Asset/Current Liability)		3.98	55.02

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 two years	Yes
12]	Profitability for last two 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	Yes
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 F-110, Karan Ceto, Kalyani Nagar NX, Wadgaonsheri, Pune – 411 014, Maharashtra to the present address w.e.f. 11.02.2011.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011

Term Loans from others	255.782	0.000

TOTAL	255.782	0.000

FIXED ASSETS:

Tangible Assets

· Lease Hold Land

· Office Equipments

· Computer Equipments

· Furniture and Fixtures

Intangible Assets

· Computer Software

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 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.54.33
UK Pound	1	Rs.82.72
Euro	1	Rs.69.82

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.

MIRA INFORM REPORT

Unit