MIRA INFORM REPORT

Report Date :

06.05.2013

IDENTIFICATION DETAILS

Name :	HIROTEC INDIA PRIVATE LIMITED (w.e.f. 24.02.2010)
Formerly Known As :	KGTESCO ENGINEERING SERVICES PRIVATE LIMITED
Registered Office :	365 KG Campus, Saravanampatti, Coimbatore - 641035, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.05.2005
Com. Reg. No.:	18-011837
Capital Investment / Paid-up Capital :	Rs. 215.056 Millions
CIN No.: [Company Identification No.]	U72200TZ2005PTC011837
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Tig Welding Fixture, Biw Weld Fixture, Clamping Pan etc.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 870000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded better growth in its turnover and profits during 2012. However, financial profile of the company is moderate and is improving. Trade relations are fair. Business is active. Payment terms are 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

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.

INFORMATION PARTED BY

Name :	Mr. Rangnathan R
Designation :	Marketing Manager
Contact No.:	91-9543628399

LOCATIONS

Registered Office/ Factory :	365 KG Campus, Saravanampatti, Coimbatore-641035, Tamilnadu, India
Tel. No.:	91-422-2667054/ 2666187
Mobile No.:	91-9543628399 (Mr. Ranganathan)
Fax No.:	91-422-2668325
E-Mail :	finance@hirotecindia.com
Website :	www.hirotecindia.com
Area :	8000 Sq. ft
Location :	Rented
Branch :	Plot No 27, A Block, Chakan MIDC, Phase 1, Pune-410501, Maharashtra, India
Area :	3000 Sq. ft
Location :	Rented

DIRECTORS

AS ON 26.09.2012

Name :	Mr. James Bernard Toeniskoetter
Designation :	Director
Address :	3666 Hollenshade Drive, Rochester Hills, Michigan-483063788
Date of Birth/Age :	20.08.1958
Date of Appointment :	06.10.2005
DIN No.:	00026280
Name :	Mr. Brian Andrew Hopkins
Designation :	Director
Address :	1121 Lockwood Rd, Ortonville, Michigan-484629250
Date of Birth/Age :	03.12.1955
Date of Appointment :	29.01.2010
DIN No.:	02938490

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	Company/ LLP Status	Defaulting status
1	U72200TZ2005PTC011837	HIROTEC INDIA PRIVATE LIMITED	Director	10-09-10	29-01-10	Active	NO

Name :	Mr. Sharon Louise Beetham
Designation :	Director
Address :	1136, Nokomis Way Dr. Waterford, Michigan-48328
Date of Birth/Age :	20.04.1966
Date of Appointment :	26.09.2012
DIN No.:	06414095
Name :	Mr. Shoji Kimoto
Designation :	Director
Address :	3-8-47, Minami-Iwakuni, Yamaguchi Pref-740-0034
Date of Birth/Age :	27.02.1961
Date of Appointment :	26.09.2012
DIN No.:	06413393
Name :	Mr. Takahiro Hayama
Designation :	Director
Address :	2-16-30, Mukainada Shinmachi, Minamiku, Hiroshima, Japan-734-0055
Date of Birth/Age :	03.03.1975
Date of Appointment :	26.09.2012
DIN No.:	06413465

KEY EXECUTIVES

Name :	Mr. Rangnathan R
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2012

Names of Shareholders	No. of Shares
Hirotec America Inc, United State	21505549
Astrum Contract Services LLC, United State	1
Hirotec Corporation, Japan	14337033
TOTAL	35842583

AS ON 26.09.2012

Equity Shares Break Up	Percentage of Holding
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 :

Manufacturer and Exporter of Tig Welding Fixture, Biw Weld Fixture, Clamping Pan etc.

Products :

Item Code	Product Description
85249113	Computer Software
84795000	Roller Hemming Tools
82073000	Tools
84663020	Fixtures

Exports :

Products :

• Tig Welding Fixture
• Biw Weld Fixture
• Clamping Pan

Countries :

• USA
• Japan

Imports :

Products :

• Raw Materials

Countries :

• Japan
• Korea
• European Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (Approximately)

Bankers :

• Indusind Bank Limited, 652-656, Tristar Towers, Avinashi Road, Coimbatore-641037, Tamilnadu, India
• Axis Bank Limited, 1619 A, Cheran Plaza, Trichy Road, Coimbatore-641018, Tamilnadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Loans and Advances From Related Parties	70.049	9.159
Working Capital Loans From Banks	0.000	36.730
TOTAL	70.049	45.889

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	Shanmugha Mnram, 41 Race Course, Coimbatore - 641018, Tamilnadu, India
PAN No.:	AACFD3771D
Holding Company :	Hirotec America Inc, United State
Ultimate Holding Company :	Hirotec Corporation, Japan
Fellow Subsidiaries :	Ueno Technica

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21505550	Equity Shares	Rs.10/- each	Rs. 215.056 Millions

AS ON 26.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35842583	Equity Shares	Rs.10/- each	Rs. 358.426 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		215.056	37.398	14.198
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.596	(3.824)	0.000
4] (Accumulated Losses)		0.000	0.000	(5.303)
NETWORTH		219.652	33.574	8.895
LOAN FUNDS
1] Secured Loans		70.049	45.889	33.855
2] Unsecured Loans		0.000	0.000	1.664
TOTAL BORROWING		70.049	45.889	35.519
DEFERRED TAX LIABILITIES		3.447	2.589	3.483
TOTAL		293.148	82.052	47.897
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		69.693	23.376	22.386
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.506	0.000	0.000
	Sundry Debtors	47.517	15.142	10.726
	Cash & Bank Balances	152.228	10.363	6.688
	Other Current Assets	99.576	41.434	15.051
	Loans & Advances	38.631	39.052	12.133
Total Current Assets		339.458	105.991	44.598
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	62.894	27.180	5.532
	Other Current Liabilities	42.143	16.088	11.918
	Provisions	10.966	4.047	1.637
Total Current Liabilities		116.003	47.315	19.087
Net Current Assets		223.455	58.676	25.511
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		293.148	82.052	47.897

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	258.657	127.415	64.671
		Other Income	NA	0.008	3.027
		TOTAL (A)	NA	127.423	67.698
Less	EXPENSES
		Personal Expenses	NA	46.829	24.810
		Administrative Expenses	NA	71.631	32.130
		TOTAL (B)	NA	118.460	56.940
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.762	8.963	10.758
Less	FINANCIAL EXPENSES (D)		9.996	0.179	0.659
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.766	8.784	10.099
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.253	8.066	7.520
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		11.513	0.718	2.579
Less	TAX (H)		3.094	(0.761)	(0.536)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		8.419	1.479	3.115
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(3.824)	(5.303)	(8.418)
	BALANCE CARRIED TO THE B/S		4.595	(3.824)	(5.303)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	78.592	44.731	31.780
	TOTAL EARNINGS		78.592	44.731	31.780
	IMPORTS
		Purchases	NA	4.561	2.788
		Services	NA	0.000	0.231
		Capital Goods	NA	0.068	0.020
	TOTAL IMPORTS		NA	4.629	3.039
	Earnings Per Share (Rs.)		0.39	(1.02)	(3.74)

Particulars	31.03.2013
Sales Turnover (Approximately)	450.000

Expected Sales (2013-2014): Rs.800.000 Millions (Due to more Production)

The above information has been parted by Mr. Ranganathan R

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	1.16	4.60
Net Profit Margin (PBT/Sales)	(%)	4.45	0.56	3.98
Return on Total Assets (PBT/Total Assets}	(%)	2.81	0.56	3.85
Return on Investment (ROI) (PBT/Networth)		0.05	0.02	0.29
Debt Equity Ratio (Total Debt /Networth)		0.32	1.37	3.99
Current Ratio (Current Asset/Current Liability)		2.93	2.24	2.34

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No

CORPORATE INFORMATION

Subject (formerly known as KGHirotec Engineering Services Private Limited) was formed in 2005 in Coimbatore, Tamilnadu as a Joint Venture between Hirotec America Inc., and KG Information Systems Private Limited. Hirotec India Private Limited became wholly owned subsidiary of Hirotec America Inc., in the year 2009.

Subject (formerly known as KGHirotec Engineering Services Private Limited), was basically into Engineering Design services and widened its base to Manufacturing of Tooling in the year 2009. The Company now provides Design and Build solutions for closures for Major OEMS in India like Ford, Mahindra, Tata, Volkswagen, Renault Nissan, etc.

REVIEW OF BUSINESS

The year has shown a profit of 4.45% before taxes. The margin has increased by about 3.90% compared to previous year 2010-11. The company has made a profit of 27.3% in the Design services business and a loss of 17.60% in the Automotive Tooling Manufacturing business.

Design services business saw revenue of Rs. 118.500 Millions, a jump of about 50%, compared to the previous year 2010-11 of Rs. 78.700 Millions. Main Revenue was generated from Hirotec America, Hirotec Corporation and General Motors India.

The Automotive Tooling Manufacturing saw revenue of Rs.140.000 Millions, a jump of about 187%, compared to the previous year 2010-11 of Rs. 48.700 Millions. The Company also added a Major Customer, Ford India, to its Customer base in 2011-12. The Company’s diversified Customers are Major Automotive OEMs in India like Ford, Volkswagen, Tata, Mahindra, Renault Nissan etc.

As promised last year, The Company has made Investments in its Automotive Tooling Business, putting in place State of Art Machineries in its leased Manufacturing Facility.

Also the Design Services Division has been expanded to meet the growing needs of the Customers.

FUTURE PLANS OF THE COMPANY

The Company has plans of purchasing its own Land next year and Build its own State of Art Manufacturing and Engineering facility in the next couple of years.

The Company is also looking out for a larger leased facility, for a short term, for its Tooling business so as to have a large space to Build and Integrate, for meeting the demands of Indian OEMs.

The Company will also continue to focus on expanding their core engineering services for customers in India and throughout Europe, Asia and North America. Investment on new avenues like Stamping Die, Simulation etc are also planned for the next year.

FIXED ASSETS

• Machinery
• Furniture And Fixtures
• Building
• Office Equipments
• Plant And Machinery
• 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. 53.95
UK Pound	1	Rs. 83.80
Euro	1	Rs. 70.49

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		37

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.