MIRA INFORM REPORT

Report Date :

26.04.2013

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) :	31.03.2012
Date of Incorporation :	27.12.1996
Com. Reg. No.:	18-037208
Capital Investment / Paid-up Capital :	Rs.700.000 Millions
CIN No.: [Company Identification No.]	U40109TN1996PTC037208
TAN No.: [Tax Deduction & Collection Account No.]	CHEI04150G
PAN No.: [Permanent Account No.]	AAACI2673L
Legal Form :	Private Limited Liability Company
Line of Business :	The subject is engaged in the business of manufacturing Automotive Lighting Equipments and Allied Products.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a 50:50 joint venture between Lucas TVS and Koito. It is an established company having a moderate track record. The appears huge accumulated losses recorded by the company. The external borrowings seems to be huge. However, the company gets strong support from its holdings. 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	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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SHORT TERM RATING : CRISIL A4+
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation it carry very high credit risk
Date	August 2012

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 15.09.2012

Name :	Mr. Tirumala Kumara 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
DIN No.:	00002010

Name :	Mr. Krishnavilasam Raghavan 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
DIN No.:	00301904

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
DIN No.:	00557711

Name :	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
DIN No.:	01733142

Name :	Yutaka Mikami
Designation :	Whole Time Director
Address :	29/14, 4The Main Road, Indira Nagar, Chennai – 600020, Tamilnadu, India
Date of Birth/Age :	28.09.1961
Date of Appointment :	30.06.2009
DIN No.:	01879253

Name :	Miyazawa Kenji
Designation :	Director appointed in casual vacancy
Address :	Shera Gardens, No.2, Door No.4A, 4^th Floor, Appa Garden Street, Kilpauk, Chennai – 600010, Chennai – 600010, Tamilnadu, India
Date of Birth/Age :	25.04.1945
Date of Appointment :	26.12.2011
DIN No.:	05313356
Name :	Megumi Iwanabe
Designation :	Alternate director
Address :
Date of Birth/Age :
Date of Appointment :	15.09.2012
DIN No.:	05322976

KEY EXECUTIVES

Name :	Mr. Venkataramanan Thinniyam Vaidyanathan
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
PAN No.:	AABPV1893K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2012

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 15.09.2012

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 :

The subject is engaged in the business of manufacturing Automotive Lighting Equipments and Allied Products.

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 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity @	Actual Production
Automotive Lighting Products	Nos.	3900000	3870000	1861288
Others **	Nos.	363137	253841	--

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

*excluding bought out items.

GENERAL INFORMATION

No. of Employees:

Not Available

Bankers :

· Bank of Baroda, IF Branch, 252 A, TTK Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· The Bank of Tokyo-Mitsubishi UFJ Limited, Seshachalam Centre, 6th and 7th Floor,, 636/1, Nandanam, Chennai - 600035, Tamil Nadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
TERM LOAN FROM BANKS
- In Rupee	273.367	423.333
LOANS REPAYABLE ON DEMAND FROM BANKS	191.611	78.179
Total	464.978	501.512

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	ASV Ramana Towers, No. 52, Venkatnarayan Road, T Nagar, Chennai – 600 017, Tamilnadu, India
PAN No.:	AACFD3771D
Holding Company :	· Koito Manufacturing Company Limited, Japan · Lucas TVS Limited, India

CAPITAL STRUCTURE

AS ON 31.03.2012

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		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		700.000	700.000	700.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(447.543)	(320.527)	(334.486)
NETWORTH		252.457	379.473	365.514
LOAN FUNDS
1] Secured Loans		464.978	501.512	711.405
2] Unsecured Loans		464.634	235.311	221.387
TOTAL BORROWING		929.612	736.823	932.792
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1182.069	1116.296	1298.306
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1187.936	1155.697	1323.128
Capital work-in-progress		14.973	56.507	9.437
INVESTMENT		8.500	2.100	2.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	244.104	144.785	124.095
	Sundry Debtors	357.017	223.359	125.974
	Cash & Bank Balances	1.191	2.484	52.610
	Other Current Assets	21.056	29.122	100.860
	Loans & Advances	98.354	101.662	0.000
Total Current Assets		721.722	501.412	403.539
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	538.465	397.006	274.640
	Other Current Liabilities	204.797	194.714	129.556
	Provisions	7.800	7.700	35.702
Total Current Liabilities		751.062	599.420	439.898
Net Current Assets		(29.340)	(98.008)	(36.359)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1182.069	1116.296	1298.306

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2257.600	2223.600	2207.900
		Other Income
		TOTAL (A)	2257.600	2223.600	2207.900
Less	EXPENSES
		Office Expenses	2110.700	1941.200	1885.600
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	2110.700	1941.200	1885.600
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		146.900	282.400	322.300
Less	FINANCIAL EXPENSES (D)		102.000	85.600	108.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		44.900	196.800	214.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		171.900	182.900	194.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(127.000)	13.900	20.300
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(127.000)	13.900	20.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(325.300)	(339.200)	(359.500)
	BALANCE CARRIED TO THE B/S		(452.300)	(325.300)	(339.200)
	Earnings Per Share (Rs.)		(1.81)	0.20	0.29

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(5.63)	0.63	0.91
Return on Total Assets (PBT/Total Assets}	(%)	(6.65)	0.84	1.17
Return on Investment (ROI) (PBT/Networth)		0.50	0.04	0.05
Debt Equity Ratio (Total Debt/Networth)		3.68	1.94	2.55
Current Ratio (Current Asset/Current Liability)		0.96	0.84	0.98

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	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
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	Yes

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
TERM LOAN FROM BANKS
- In Rupee	379.946	170.000
- In Foreign Currency	35.238	16.831
LOANS REPAYABLE ON DEMAND FROM BANKS	49.450	48.480
Total	464.634	235.311

INDIAN AUTOMOTIVE INDUSTRY:

The fiscal 2011-12 witnessed several challenges in the global and domestic business environments. Natural calamities in Japan and Thailand, sovereign debt crisis in the European economies, uprisings in the Middle East coupled with spiralling inflation and increasing interest rates in India marked the progress of the year. Overall GDP growth rate dropped from 8.4% to 6.5% in 2011-12, while the Index of Industrial Production growth declined from 8.2% to 2.8%. During the financial year 2011-12, the automobile sector registered an overall growth of 13.8% compared to 2010-11. The Passenger & Utility vehicles segment grew by 4.7%. The Commercial Vehicle segment and the two wheeler recorded a growth of 10.8% and 14% respectively.

PERFORMANCE REVIEW:

The company, which currently operates in the passenger car, commercial vehicle and two wheeler domain, recorded growth of 1% as compared to last year. The company sales was affected significantly due to Maruti Suzukis Manesar Plant shut down for about three months during the year. However business from new customers helped the company to partly compensate the shortfall in sales. Chennai plant sales increased by 25% during the year. While the Chennai plant capacity utilisation during the year improved to 83%, the Bawal plant operated only at about 55% level. Consequent to increase in power cost together with investment in employees to support future business activities led to lower operating margins. In addition to this, higher interest cost contributed to the loss for the year. With additional business targeted by the Company by expanding the customer base, the company hopes to improve its results in the coming years.

CORPORATE INFORMATION

Subject was incorporated in December 1996. It is a 50:50 Joint venture between Lucas-TVS Chennai and Koito Manufacturing Limited Japan. Lucas TVS limited is an acknowledged leader in Auto Electricals in India, While Koito Manufacturing Company Limited is the leader in Automotive lighting in Japan. Koito have been in the lighting business for 90 years. Apart from automotive lighting, they also manufacture specialized lighting equipments for ships and aircrafts. Koito also has ventures in USA, UK, China, Korea, Thailand, Taiwan, and Czechakaslovika. India Japan Lighting Private Limited is a TS-16949 and ISO -14001 Company.

BANKERS CHARGES REPORT AS PER REGISTRY

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 E-Mail Id : tvvenkat@ijl.co.in
This form is for	Creation of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	The Bank of Tokyo-Mitsubishi UFJ Limited, Seshachalam Centre, 6th and 7th Floor,, 636/1, Nandanam, Chennai - 600035, Tamil Nadu, India E-Mail Id : devakanth_munusamy@in.mufg.jp
Nature of instrument creating charge	Agreement of hypothecation covering fixed assets dated 27.08.2012
Date of instrument Creating the charge	27.08.2012
Amount secured by the charge	Rs.250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest MIBOR or MIOIS Plus 95 BPPS Terms of repayment 1st instalment of Rs.43.300 Millions on 29-9-2012, second instalment of Rs.63.300 on 29-9-2013, third instalment of Rs.63.300 Millions 29-9-2014 and final instalment of Rs.80.100 Millions 29-9-2015. Margin As per the hypothecation agreement dated 27.08.2012 Extent and Operation of the charge The charge operates as security for the repayment of loan of Rs.250.000 Millions along with interest.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Building, plant and machinery (present and future located at Puduchatram in Tamilnadu state and Bawal in Haryana State.

FIXED ASSETS:

· Land and Building

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· 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.54.17
UK Pound	1	Rs.82.99
Euro	1	Rs.70.62

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	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		27

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.