MIRA INFORM REPORT

Report Date :

20.02.2013

IDENTIFICATION DETAILS

Name :	TOKAI IMPERIAL RUBBER INDIA PRIVATE LIMITED
Registered Office :	202-203, Kushal Bazar, 32-33, Nehru Place, New Delhi - 110019
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.11.2005
Com. Reg. No.:	55-142682
Capital Investment / Paid-up Capital :	Rs. 246.000 Millions
CIN No.: [Company Identification No.]	U25191DLC2005PTC142682
PAN No.: [Permanent Account No.]	AACCT4094J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer rubber hoses for cars and two wheelers.
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 340000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of Tokai Rubber Industries Limited, Japan. It is an established company having a moderate track record. There appears some dip in the profits during 2012. It seems that the company has recorded huge accumulated losses. However, trade relations are reported as fair. Business is active. Payments are reported be slow. 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.

LOCATIONS

Registered Office :	202-203, Kushal Bazar, 32-33, Nehru Place, New Delhi - 110019, India.
Tel. No.:	91-1275-262102
Fax No.:	91-1275-262106
E-Mail :	companysecretary@tir.co.in office@tir.co.in
Website :	http://www.tokai.co.jp
Corporate Office 1 :	45 Miles Stone VPO Prithla Delhi-Mathura Road, District-Palwal, Faridabad- 121102, Haryana, India
Tel. No.:	91-1275-262103 / 262102 / 262105
Fax No.:	91-1275-262106
Corporate Office 2 :	Plot No. 94, Sector 25, Faridabad - 121004, Haryana, India
Tel. No.:	91-129-2233281/ 2231148/ 2232993
Fax No.:	91-129-2441028
Branch Office :	Sy No. 65, No. 48-D, KIADB Industrial Area Yellapura Village, Doddaballapura, District Bangalore Rural – 561203, Karnataka, India
Tel. No.:	91-80-2763-0025
Fax No.:	91-80-2763-0040
Overseas Office :	Located at: · North America · Europe · China · Asia Nations

DIRECTORS

As on 05.09.2012

Name :

Mr. Jagjit Singh Lamba

Designation :

Director

Address :

House No -9 Sector -18 A, Faridabad, Haryana, India

Date of Birth/Age :

15.09.1938

Date of Appointment :

18.11.2005

DIN No.:

00109439

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	U74899DL1995PLC069837	IAI INDUSTRIES LIMITED	Director	01-10-95	01-10-95	-	Active	NO
2	U34300DL1997PLC084252	IMPERIAL AUTO NYLON TUBING LIMITED	Director	06-01-97	06-01-97	-	Active	NO
3	U34300DL1971PLC207710	AUTO IGNITION LIMITED	Director	02-07-02	02-07-02	-	Active	NO
4	U74899DL1975PLC007737	IMPERIAL AUTO INDUS-TRIES LIMITED	Managing director	01-04-09	01-04-05	-	Active	NO
5	U25191DL2005PTC142682	TOKAI IMPERIAL RUBBER INDIA PRIVATE LIMITED	Director	18-11-05	18-11-05	-	Active	NO
6	U74899DL1974PLC007063	SOLAR GLASS WORKS LIMITED	Director	28-06-06	28-06-06	01-12-07	Active	NO
7	U55101PB2006PTC030718	NORTHERN INDIA MOTELS AND RESORTS PRIVATE LIMITED	Director	30-11-06	30-11-06	28-06-08	Strike off	NO
8	U25199DL2010PLC207562	S J RUBBER INDUSTRIES LIMITED	Director	26-08-10	26-08-10	-	Active	NO

Name :

Mr. Sham Behari Sardana

Designation :

Director

Address :

House No D-99,Panchsheel Enclave, New Delhi, India

Date of Birth/Age :

21.03.1944

Date of Appointment :

18.11.2005

DIN No.:

00109418

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	U34300DL1997PLC084252	IMPERIAL AUTO NYLON TUBING LIMITED	Director	11-07-00	11-07-00	-	Active	NO
2	U74899DL1995PLC069837	IAI INDUSTRIES LIMITED	Director	01-12-08	01-11-02	-	Active	NO
3	U74899DL1975PLC007737	IMPERIAL AUTO INDUS-TRIES LIMITED	Managing director	01-04-09	01-04-05	-	Active	NO
4	U25191DL2005PTC142682	TOKAI IMPERIAL RUBBER INDIA PRIVATE LIMITED	Director	18-11-05	18-11-05	-	Active	NO
5	U25199DL2010PLC207562	S J RUBBER INDUSTRIES LIMITED	Director	26-08-10	26-08-10	-	Active	NO

Name :

Mr. Katsunori Kanaoka

Designation :

Director

Address :

7-14-22, Degawa, Kasugai City, Aichi Prefecture, Japan

Date of Birth/Age :

31.01.1958

Date of Appointment :

01.06.2011

DIN No.:

03535231

Name :

Mr. Junichi Yamada

Designation :

Managing Director

Address :

RM 204, 1-36-4, Gonaka, Komaki City, Aichi Prefecture-4850033, Japan

Date of Birth/Age :

27.11.1962

Date of Appointment :

04.02.2010

DIN No.:

02947784

KEY EXECUTIVES

Name :	Ms. Riti Arora
Designation :	Secretary
Address :	H No. # 1746, N.I.T., Faridabad-121005, Haryana, India
Date of Birth/Age :	29.11.1986
Date of Appointment :	22.03.2010
Pan No.:	ARLPA6936H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.09.2012

Names of Shareholders	No. of Shares
Tokai Rubber Industries Limited, Japan	147600
Imperial Auto Industries Limited, India	98400
Total	246000

As on 05.09.2012

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	60.00
Bodies corporate	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer rubber hoses for cars and two wheelers.

Products :

ITC Code No.	Product Description
40092200	Automotive Hoses

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Automotive Hoses (Manufactured)	Meters	4680000	15435257
Automotive Hoses (Repackaged/ relabeled) #	Meters	--	177150

Note

1. Installed capacity is as certified by management and have not been verified by the auditors, being a technical matter.

2. Installed capacity is in running length, while actual output is in numbers of pieces of automotive hoses produced based upon specific lengths as ordered by customers.

3. The actual production does not include free issues of finished goods during the year.

# These represent automotive hoses imported and sold after repackaging, inspection, lubrication, checking of fitment and relabelling. Hence, in respect of such goods there is no corresponding installed capacity.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	7^th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City Phase -II,Gurgaon-122002, Haryana, India
PAN. No. :	AABFD2095B
Holding and ultimate holding company :	Tokai Rubber Industries Limited, Japan
Entity in respect of which the Company is an associate :	Imperial Auto Industries Limited
Enterprise that has a member of key management personnel in common :	S.J. Rubber Industries Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
246000	Equity Shares	Rs.1000/- each	Rs.246.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
246000	Equity Shares	Rs.1000/- each	Rs.246.000 Millions

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
Imperial Auto Industries Limited	98,400	40.00%
Tokai Rubber Industries Limited	1,47,600	60.00%

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		246.000	246.000	246.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(159.296)	(180.459)	(255.389)
NETWORTH		86.704	65.541	(9.389)
LOAN FUNDS
1] Secured Loans			0.000	0.000
2] Unsecured Loans		57.000	109.000	261.694
TOTAL BORROWING		57.000	109.000	261.694
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		143.704	174.541	252.305
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		289.471	332.291	390.847
Capital work-in-progress		29.432	3.490	0.149
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	194.115	145.007	104.378
	Sundry Debtors	125.794	112.623	44.398
	Cash & Bank Balances	5.061	8.968	8.859
	Other Current Assets	0.000	0.000	0.000
	Other Non-Current Assets	18.268	0.000	0.000
	Loans & Advances	58.154	70.067	98.253
Total Current Assets		401.392	336.665	255.888
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	551.834	463.409	365.905
	Other Current Liabilities	20.945	13.743	22.518
	Provisions	3.812	20.753	6.156
Total Current Liabilities		576.591	497.905	394.579
Net Current Assets		(175.199)	(161.240)	(138.691)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		143.704	174.541	252.305

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	799.745	745.945	468.962
		Other Income	0.011	9.349	58.434
		TOTAL (A)	799.756	755.294	527.396
Less	EXPENSES
		Raw material and components consumed			270.062
		Increase/ decrease in Stock	709.945		(8.728)
		Personnel Costs			34.366
		Manufacturing Expenses			79.440
		Other Expenses			1.697
		TOTAL (B)	709.945	588.507 (Including Finance Expenses)	376.837
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		89.811		150.559
Less	FINANCIAL EXPENSES (D)		0.049		24.021
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		89.762	166.787	126.538
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.324	71.654	60.041
	PROFIT BEFORE TAX (E-F) (G)		26.438	95.133	66.497
Less	TAX (H)		5.274	20.203	(51.615)
	PROFIT AFTER TAX (G-H) (I)		21.164	74.930	118.112
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	0.631	0.087	NA
	TOTAL EARNINGS		0.631	0.087	NA
	IMPORTS
		Raw Materials	325.041	311.649	244.817
		Stores & Spares	76.629	62.735	18.750
		Capital Goods	25.371	4.047	26.807
	TOTAL IMPORTS		427.041	378.431	290.374
	Earnings Per Share (Rs.)		86.03	304.59	480.13

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.65	9.92	22.40
Net Profit Margin (PBT/Sales)	(%)	3.31	12.75	14.18
Return on Total Assets (PBT/Total Assets}	(%)	3.83	14.22	10.28
Return on Investment (ROI) (PBT/Networth)		0.30	1.45	(7.08)
Debt Equity Ratio (Total Debt /Networth)		0.66	1.66	(27.87)
Current Ratio (Current Asset/Current Liability)		0.70	0.68	0.65

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

BACKGROUND

Subject was incorporated under the Companies Act, 1956 on November 18, 2005 with an objective of carrying out the business of manufacturing rubber hoses for cars and two wheelers

The Company is a subsidiary of Tokai Rubber Industries Limited, Japan, which holds 60% of its equity shares. The remaining 40% equity shares are held by Imperial Auto Industries Limited, India.

RESULTS OF OPERATIONS:

The standalone turnover for the year ended 31^st March, 2012 stood at Rs.799.745 Millions as against turnover of Rs. 745.945 Millions in the previous year. However the bottom line reflected the profit after tax and depreciation of Rs. 21.164 Millions as against the profit of Rs. 74.929 Millions in the previous year, which is mainly attributable to the increase in expenditure to Rs. 709.945 Millions as against Rs. 588.507 Millions in the previous year.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Other Debt Unsecured	Not Available	109.000
Total	Not Available	109.000
Borrowing costs include interest. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

FIXED ASSETS

• Land freehold
• Buildings
• Plant and Machinery
• Tools and dies
• Furniture and fixture
• Office Equipment
• Computers
• Motor 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 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.54.29
UK Pound	1	Rs.84.09
Euro	1	Rs.72.44

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	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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		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.