MIRA INFORM REPORT

Report Date :

23.05.2013

IDENTIFICATION DETAILS

Name :	FMI AUTOMOTIVE COMPONENTS LIMITED
Registered Office :	Plot No.1, Nelson Mandela Road, Vasant Kunj, New Delhi -110070
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.11.2007
Com. Reg. No.:	55-170043
Capital Investment / Paid-up Capital :	Rs. 900.000 Millions
CIN No.: [Company Identification No.]	U34201DL2007PLC170043
PAN No.: [Permanent Account No.]	AABCF1682P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Seller and Dealer in all kinds of Automotive Exhaust System Components and Related Parts.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2852800
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between Futaba Industrial Company Limited Japan and Maruti Suzuki India Limited. It is an established company having satisfactory track record. There appears slight dip in its sales turnover and has recorded some accumulated losses during 2012. However the subject gets strong managerial and financial support from its holding companies. Trade relations are fair. Business is active. Payments are slow but correct. In view of experienced promoters the company can be considered for normal business dealings at usual trade terms and condition.

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.

LOCATIONS

Registered Office :	Plot No.1, Nelson Mandela Road, Vasant Kunj, New Delhi -110070, India
Tel. No.:	91-11-46781138
Fax No.:	91-11-46150275
E-Mail :	krishan.kumar@fmi_automotive.co.in
Factory / Corporate Office:	MSIL Supplier Park, Plot No. 1 (Sub Plot No – 4,5,8,and 9), Phase 3A, IMT Manesar, Gurgaon – 122050, Haryana, India
Tel. No.:	91-124-4548405/4548017

DIRECTORS

As on : 21.05.2012

Name :

Mr. Toshio Inoue

Designation :

Managing Director

Address :

Flat No.101, Block No. F, Central Park-, Sector-42, Gurgaon-122 009, Haryana, India

Date of Birth/Age :

06.04.1959

Qualification :

B.E.

Experience :

30 Years

Date of Appointment :

01.04.2011

DIN No.:

03115290

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	U34201DL2007PLC170043	FMI AUTOMOTIVE COMPONENTS LIMITED.	Managing director	01-04-11	14-06-10	-	Active	NO

Name :

Mr. Tsuneo Ohashi

Designation :

Director

Address :

Room No. 211, Jukaso IT Suites, IT Composite Tower, 1 IDC Mahrauli Road, Gurgaon-122015, Haryana, India

Date of Birth/Age :

20.06.1951

Date of Appointment :

19.12.2008

DIN No.:

00009612

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	L34103DL1981PLC011375	MARUTI SUZUKI INDIA LIMITED	Whole-time director	01-01-11	01-01-08	26-04-13	Active	NO
2	U34201DL2007PLC170043	FMI AUTOMOTIVE COMPONENTS LIMITED.	Director	19-12-08	02-01-08	-	Active	NO
3	U27109DL2002PLC117679	SUZUKI POWERTRAIN INDIA LIMITED	Director	22-08-08	11-07-08	-	Amalgamated	NO
4	U40300HR2007PTC046166	MAGNETI MARELLI POWERTRAIN INDIA PRIVATE LIMITED	Director	07-03-12	07-03-12	29-11-12	Active	NO

Name :

Mr. Junji Kitagawa

Designation :

Director

Address :

3-905-7,Tsuchihara Tenpaku-ku, Nagoya-City, Aichi-Pref, Japan-4680026

Date of Birth/Age :

10.01.1953

Date of Appointment :

19.12.2008

DIN No.:

01641310

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	U34201DL2007PLC170043	FMI AUTOMOTIVE COMPONENTS LIMITED.	Director	19-12-08	01-11-07	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Krishan Kumar
Designation :	Company Secretary
Address :	639,Sector-9,Gurgaon, Haryana, India
Date of Birth :	10.08.1974
Date of Appointment :	24.06.2008
PAN No :	AQPPK3301D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 21.05.2012

Names of Shareholders	No. of Shares
Futaba Industrial Company Limited, Japan	45900000
Maruti Suzuki India Limited, India	44099995
Maruti Suzuki India Limited, India jointly with Mr. Shinzo Nakanishi	1
Maruti Suzuki India Limited, India jointly with Mr. Tsuneo Ohashi	1
Maruti Suzuki India Limited, India jointly with Mr. Toshiaki Tashiro	1
Maruti Suzuki India Limited, India jointly with Mr. Keiichi Asai	1
Maruti Suzuki India Limited, India jointly with Mr. Hiroshi Sakamoto	1
Total	90000000

Equity Share Break up (Percentage of Total Equity)

As on : 21.05.2012

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	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Seller and Dealer in all kinds of Automotive Exhaust System Components and Related Parts

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity-
Muffler	Pcs	507456
Pipe Components	Pcs	1174452
Manifold	Pcs	684000

Note: - Annual capacity on double shift basis, as certified by the management, at 90% efficiency.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	HDFC Bank Limited, House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Building No. 10, 8^th Floor, Tower-B, DLF Cuber, Phase - II, Gurgaon-122002, Haryana, India
Tel. No.:	91-124-2549191
Fax No.:	91-124-2549101
Holding Company:	Futaba Industrial Company Limited, Japan
Company venture/ Joint Venture Partner :	Maruti Suzuki India Limited, India

CAPITAL STRUCTURE

As on : 21.05.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.10/- each	Rs. 900.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.10/- each	Rs. 900.000 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		900.000	900.000	900.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(186.800)	(92.500)	(191.553)
NETWORTH		713.200	807.500	708.447
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		852.300	842.900	755.809
TOTAL BORROWING		852.300	842.900	755.809
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1565.500	1650.400	1464.256
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1161.700	1101.700	1259.424
Capital work-in-progress		1.400	86.900	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	157.800	122.700	95.602
	Sundry Debtors	453.900	517.200	151.306
	Cash & Bank Balances	46.500	96.300	98.076
	Other Current Assets	110.400	1.300	0.100
	Loans & Advances	232.300	216.500	205.380
Total Current Assets		1000.900	954.000	550.464
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	466.800	483.400	330.263
	Other Current Liabilities	130.000	7.700	14.576
	Provisions	1.700	1.100	0.793
Total Current Liabilities		598.500	492.200	345.632
Net Current Assets		402.400	461.800	204.832
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1565.500	1650.400	1464.256

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3302.600	3693.900	2027.800
		Other Income	9.100	14.900	61.009
		TOTAL	3311.700	3708.800	2088.809
Less	EXPENSES
		Cost of Materials	2784.400	3063.200	1771.568
		Changes in Inventories	10.300	(27.800)	(17.665)
		Employees Benefits	49.200	37.300
		Personnel Expenses	0.000	0.000	26.555
		Operating and administrative expenses	0.000	0.000	63.195
		Other Expenses	288.400	285.900	1.300
		TOTAL	3132.300	3358.600	1844.953
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		179.400	350.200	243.856
Less	FINANCIAL EXPENSES		67.900	61.000	5.969
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		111.500	289.200	237.887
Less/ Add	DEPRECIATION/ AMORTISATION		205.800	190.100	167.015
	PROFIT BEFORE TAX		(94.300)	99.100	70.872
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		(94.300)	99.100	70.872
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(92.500)	(191.553)	(262.425)
	BALANCE CARRIED TO THE B/S		(186.800)	(92.500)	(191.553)
	IMPORTS
		Raw Materials	51.000	86.000	38.368
		Stores & Spares	4.300	5.300	6.721
		Capital Goods	146.200	88.800	177.791
		Consumables Goods	0.600	18.700	20.466
		Goods in Transit	13.600	6.800	7.293
	TOTAL IMPORTS		215.700	205.600	250.639
	Earnings Per Share (Rs.)		(1.05)	1.10	0.79

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.85)	2.67	3.39
Net Profit Margin (PBT/Sales)	(%)	(2.86)	2.68	3.49
Return on Total Assets (PBT/Total Assets}	(%)	(4.36)	4.82	3.92
Return on Investment (ROI) (PBT/Networth)		(0.13)	0.12	0.10
Debt Equity Ratio (Total Debt /Networth)		1.20	1.04	1.07
Current Ratio (Current Asset/Current Liability)		1.67	1.94	1.59

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	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, 11th Floor, Jeevan Prakash, Kasturba Gandhi Marg, New Delhi – 110001 India to the present address with w.e.f.01.01.2009

BACKGROUND :

FMI Automotive Components Limited, a Subsidary of Futaba Industrial Company Limited, is a limited liability company incorporated on 1^st November 2007, as a joint venture between Futaba Industrial Company Limited and Maruti Suzuki India Limited. The company was set up with the primary objective to carry on the business of Manufacturer, Seller and Dealer in all kinds of Automotive Exhaust System Components and Related Parts.

BUSINESS AND OPERATIONS :

Net sales of the Company has reduced to Rs. 330.000 Millions for the financial year ended 31 March, 2012 from Rs. 3690.000 Millions in financial year ended 31 March, 2011 thereby a reduction of 11% in turnover in financial year 2011-12 against previous financial year. Loss after tax is Rs. 94.300 Millions against profit of Rs. 99.100 Millions in last financial year. Loss on account of foreign exchange fluctuation is Rs. 142.600 Millions as against loss of Rs. 90.000 Millions in 2010-11. Company incurred Rs. 166.100 Millions in capitalization of new manifold line in January, 2012. Labor problem at our customer’s end was the prime reason for reduction in net sales of the company.

FUTURE OUTLOOK :

Considering limited grow in exhaust systems, Company is in process of evaluating the possibility of supplying other parts and components like sheet metal components to its customer. Further, as the fuel prices particularly of petrol are rising with alarming speed, Company is planning to enter into diesel segment wherein Company will be supplying exhaust systems for diesel engine cars.

UNSECURED LOAN

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
External commercial borrowings from holding company	852.300	842.900
Total	852.300	842.900

Note :

External commercial borrowings from holding company Terms of repayment of loan As per the contarctual terms, the repayment of this loan is on quarterly basis, wherein the first installment becomes due on 31 December 2012 and the last installment becomes due on 30 September 2016. Rate of interest is 3 months LIBOR plus 0.25% per annum. The loan amount repayable within next one year has been reclassed as other currrent liability

FIXED ASSETS:

Tangible Assets

• Building
• Electrical Fitting
• Plant and Machinery
• Dies and Moulds
• Vehicle
• Furniture and Fixture
• Office Equipments
• Computers and Accessories

Intangible Assets

• 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 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. 55.52
UK Pound	1	Rs. 84.09
Euro	1	Rs. 71.67

INFORMATION DETAILS

Report Prepared by :

NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	-
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		42

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.