MIRA INFORM REPORT

Report Date :

31.08.2013

IDENTIFICATION DETAILS

Name :	MINDA KYORAKU LIMITED [w.e.f.30.09.2011]
Formerly Known As :	BLOWMOULDING ENGINEERING LIMITED
Registered Office :	B 64/1, Wazirpur Industrial Area, Delhi - 110052
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.08.2011
Com. Reg. No.:	55-223819
Capital Investment / Paid-up Capital :	Rs. 400.000 Millions
CIN No.: [Company Identification No.]	U35122DL2011PLC223819
PAN No.: [Permanent Account No.]	AAECB6805H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Blow Moulding Products, Duct, Spoiler, Drain Hose and Warning Triangle.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 1757000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between Minda Industries Kyoraku Company Limited and Nagase Company Limited. It is an established company having a moderate track record. In its first year of business operations, the subject has recorded losses from its operations. However, there appear no external borrowings recorded during 2012. Liquidity position seems to be decent. Trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of strong holding companies, the subject can be considered for business dealings with slight 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 :	B 64/1, Wazirpur Industrial Area, Delhi – 110052, India
Tel. No.:	91-11-27375228
Fax No.:	Not Available
E-Mail :	rakeshb@mindagroup.com
Website :	http://www.mindagroup.com
Head Office :	Plot No. 327, Phase II, Sector-3, Industrial Growth Centre, Bawal – 123501, Rewari, Haryana, India
Tel. No.:	91-1284-264139
Fax No.:	91-1284-264138

DIRECTORS

AS ON 30.07.2012

Name :

Mr. Nitesh Kumar Minda

Designation :

Managing director

Address :

8, Harsh Vihar Pitam Pura, Delhi – 110034, India

Date of Birth/Age :

01.07.1982

Qualification :

Graduate

Date of Appointment :

01.10.2011

PAN No.:

AJEPM6743K

DIN No.:

00408023

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	U74899DL1994PLC057330	PIONEER FINEST LIMITED	Director	10/11/2004	10/11/2004	20/08/2010	Active	NO
2	U29111DL1999PLC102709	SHANKAR MOULDING LIMITED	Director	01/04/2008	01/04/2005	20/08/2010	Active	NO
3	U51909DL2011PLC223728	MI TORICA INDIA LIMITED	Managing director	01/10/2011	05/09/2011	-	Active	NO
4	U35122DL2011PLC223819	MINDA KYORAKU LIMITED	Managing director	01/10/2011	26/09/2011	-	Active	NO

Name :

Mr. Ashok Kumar Goel

Designation :

Director

Address :

A 303 GH- 96, Sector - 54, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

29.08.1950

Qualification :

Graduate

Date of Appointment :

17.08.2011

DIN No.:

02012971

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	U23201DL2001PLC111781	MINDA AUTOGAS LIMITED	Director	18/08/2008	17/12/2007	-	Amalgamated	NO
2	U34300KA2008PTC047401	TOKAI RIKA MINDA INDIA PRIVATE LIMITED	Director	27/07/2009	25/08/2008	-	Active	NO
3	U74899DL1995PTC073692	MINDARIKA PRIVATE LIMITED	Director	26/08/2009	11/12/2008	15/07/2013	Active	NO
4	L74899DL1992PLC050333	MINDA INDUSTRIES LIMITED	Director appointed in casual vacancy	29/07/2009	29/07/2009	29/10/2009	Active	NO
5	U51909DL2011PLC223728	MI TORICA INDIA LIMITED	Director	16/08/2011	16/08/2011	12/07/2013	Active	NO
6	U35122DL2011PLC223819	MINDA KYORAKU LIMITED	Director	17/08/2011	17/08/2011	-	Active	NO
7	U28111RJ2008PTC026385	TOYODA GOSEI MINDA INDIA PRIVATE LIMITED	Director	17/11/2011	17/11/2011	15/12/2012	Active	NO
8	U35999DL2012FTC238701	FUJITSU TEN MINDA INDIA PRIVATE LIMITED	Director	11/07/2012	11/07/2012	23/07/2013	Active	NO
9	U50400DL2012PTC238724	MINDA F-TEN PRIVATE LIMITED	Director	12/07/2012	12/07/2012	-	Active	NO

Name :

Kiyotaka Kawai

Designation :

Director

Address :

478-1, Kawamiya-CHO, Moriyama - KU, Nagoya – SHI, Aichi, Japan-4630081

Date of Birth/Age :

18.02.1952

Qualification :

Graduate

Date of Appointment :

26.09.2011

DIN No.:

03629226

Name :

Atsushi Senoo

Designation :

Alternate director

Address :

1958 Dai, Kamakura-SHI, Kanagawa-KEN, Japan 2470061

Date of Birth/Age :

21.11.1957

Date of Appointment :

24.02.2012

DIN No.:

05203285

KEY EXECUTIVES

Name :	Mr. Rakesh Bhardwaj
Designation :	Secretary
Address :	H. No. 285, IInd Floor, Sector-47, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	15.01.1984
Date of Appointment :	15.06.2012
PAN No.:	AONPB6595A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.07.2012

Names of Shareholders	No. of Shares
Anand K. Minda	49400
Nirmal K. Minda	100
Sudhir Jain	100
Harish Chander Dhamija	100
Brijesh K. Saini	100
Praveen Juneja	100
Debadas Panda	100
Minda Industries Limited, India	29550000
Kyoraku Company Limited, Japan	6400000
Nagase and Company Limited, Japan	4000000
Total	40000000

AS ON 13.12.2012

Names of Allottee	No. of Shares
Chiyoda Manufacturing Corporation, japan	1237000
Total	1237000

AS ON 30.07.2012

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]	26.00
Bodies corporate	73.88
Directors or relatives of directors	0.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Blow Moulding Products, Duct, Spoiler, Drain Hose and Warning Triangle.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Building No. 10, 8th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon, Haryana, India
Income-tax PAN of auditor or auditor's firm :	ADIPJ2480L
Holding Company: :	Minda Industries Limited [L74899DL1992PLC050333]
Other Entities over which Key Management Personnel are able to exercise significant influence: :	MI Torica India Limited

CAPITAL STRUCTURE

AFTER 30.07.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
41,237,000	Equity Shares	Rs. 10/- each	Rs. 412.370 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41,237,000	Equity Shares	Rs. 10/- each	Rs. 412.370 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40,000,000	Equity Shares	Rs. 10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40,000,000	Equity Shares	Rs. 10/- each	Rs. 400.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	17.08.2011 to 31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	400.000
(b) Reserves & Surplus	39.368
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	439.368
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	2.322
(c) Other long term liabilities	4.200
(d) long-term provisions	1.681
Total Non-current Liabilities (3)	8.203
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	9.245
(c) Other current liabilities	43.841
(d) Short-term provisions	0.062
Total Current Liabilities (4)	53.148
TOTAL	500.719
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	258.849
(ii) Intangible Assets	6.928
(iii) Capital work-in-progress	0.143
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	14.779
(e) Other Non-current assets	0.000
Total Non-Current Assets	280.699
(2) Current assets
(a) Current investments	0.000
(b) Inventories	22.253
(c) Trade receivables	30.442
(d) Cash and cash equivalents	156.688
(e) Short-term loans and advances	9.048
(f) Other current assets	1.589
Total Current Assets	220.020
TOTAL	500.719

PROFIT & LOSS ACCOUNT

	PARTICULARS		17.08.2011 to 31.03.2012
	SALES
		Revenue from operations	42.499
		Other Income	1.994
		TOTAL (A)	44.493
Less	EXPENSES
		Cost of materials consumed	25.596
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1.629)
		Employee benefit expense	8.920
		Other expenses	12.072
		TOTAL (B)	44.959
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(0.466)
Less	FINANCIAL EXPENSES (D)		0.197
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(0.663)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.496
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(6.159)
Less	TAX (H)		2.323
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(8.482)
	IMPORTS
		Raw Materials	0.651
		Stores & Spares	0.930
	TOTAL IMPORTS		1.581
	Earnings/ (Loss) Per Share (Rs.)		(1.30)

KEY RATIOS

PARTICULARS		17.08.2011 to 31.03.2012
PAT / Total Income	(%)	(19.06)
Net Profit Margin (PBT/Sales)	(%)	(14.49)
Return on Total Assets (PBT/Total Assets}	(%)	(1.23)
Return on Investment (ROI) (PBT/Networth)		(0.01)
Debt Equity Ratio (Total Debt/Networth)		0.00
Current Ratio (Current Asset/Current Liability)		4.14

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 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 (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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10391042	28/06/2013 *	50,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA	B78965175
2	10391044	28/06/2013 *	120,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA	B78964335

* Date of charge modification

COMPANY OVERVIEW

Subject was incorporated in India on 17th August 2011 as a joint venture between Minda Industries Limited, Nagase and Company Limited (Japan) and Kyoraku Company Limited (Japan). The Company is primarily involved in manufacture of blow moulding products, duct, spoiler, drain hose and warning triangle. The Company caters to both domestic markets.

OPERATIONS

The Company was incorporated on 17 August, 2011 by Registrar of Companies, NCT of Delhi and Haryana and received certificate of Commencement of Business on 15 September, 2011. During the period the company has achieved a turnover of Rs. 42.499 Millions and incurred a loss after tax of Rs. 8.482 Millions.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

· 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. 66.57
UK Pound	1	Rs. 103.34
Euro	1	Rs. 88.16

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.