MIRA INFORM REPORT

Report Date :

27.05.2013

IDENTIFICATION DETAILS

Name :	NIPPON EXPRESS (INDIA) PRIVATE LIMITED (w.e.f. 12.04.2007)
Formerly Known As :	J I LOGISTICS PRIVATE LIMITED
Registered Office :	“Logistics Park”, Plot No.7, Road No.10, Export Promotion Industrial Park, Whitefield, Bangalore – 560 066, Karnataka
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	27.09.2006
Com. Reg. No.:	08-040642
Capital Investment / Paid-up Capital :	Rs.35.000 millions
CIN No.: [Company Identification No.]	U63031KA2006PTC040642
PAN No.: [Permanent Account No.]	AACCN5026E
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Logistics Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 3020000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Nippon Express Company Limited’. It is a well-established company having a fine track record. The financial position of the company is sound and healthy. Trade relations are decent. Business is active. Payment terms are regular and as per commitment. The company can be considered for business dealings at usual trade terms and conditions.

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 :	“Logistics Park”, Plot No.7, Road No.10, Export Promotion Industrial Park, Whitefield, Bangalore – 560 066, Karnataka, India
Tel. No.:	91-80-41353500 (10 Lines)
Fax No.:	91-80-41353539/ 41353600
E-Mail :	krishnamurthy.p@nittsu.co.in
Website :	http://www.nipponexpress.com
Nhava Sheva Office :	No.705, 7^th Floor, Freight Forwarders, Premises Co-operative Soc. Ltd. Plot No. 5, Sector 1, Dronagiri, Uran, District Raigad – 400 707, Maharashtra, India
Tel. No.:	91-22-27472318/ 27472384
Fax No.:	91-22-27472640
Bangalore Branch Airport Terminal Office :	Room #11, 3^rd Floor, Menzies Bobba Cargo Terminal, Bangalore Airport Devanahalli, Bangalore – 560 300, Karnataka, India
Tel. No.:	91-80-27688233
Fax No.:	91-80-27688309
Branch Office 1 :	Plot No.442, Udyog Vihar Phase-III, Gurgaon – 122 016, Haryana, India
Tel. No.:	91-124-4994200/ 4216533-36/ 4001357
Fax No.:	91-124-4001359/ 4216532
Branch Office :	Also located at: · Ahmedabad · Chennai · Cochin · Coimbatore · Hyderabad · Kolkata · Mumbai · Pune · Trivandrum

DIRECTORS

As on 26.04.2013

Name :	Mr. Paradarami Krishna Murthy
Designation :	Managing Director
Address :	49, YS Palazzo, 6^th Main, 18^th Cross, Malleswaram, Bangalore – 560 003, Karnataka, India
Date of Birth/Age :	01.07.1963
Qualification :	B. Tech
Experience :	26 Years
Date of Appointment :	02.04.2007
DIN No.:	00144842
Name :	Mr. Rajam Jayakumar
Designation :	Director
Address :	34, Kirloskar Colony, 1^st Stage, Bangalore – 560 079, Karnataka, India
Date of Birth/Age :	01.09.1948
Qualification :	M. Sc Engineering
Date of Appointment :	27.09.2006
DIN No.:	00121817
PAN No.:	ABIPJ6417H
Name :	Mr. Shuji Kojima
Designation :	Director
Address :	2-46-12, WAKABACHO, Tachikawa, Tokyo
Date of Birth/Age :	09.11.1951
Qualification :	Graduate
Date of Appointment :	22.04.2008
DIN No.:	01801824
Name :	Mr. Hiroyasu Takeuchi
Designation :	Director
Address :	B3, Royal Castle, 3^rd Floor, Sriram Nagar, North Street, Alwarpet, Chennai – 600 018, Tamilnadu, India
Date of Birth/Age :	24.12.1954
Qualification :	B. Economics
Experience :	35 Years
Date of Appointment :	11.05.2011
DIN No.:	03512553
Name :	Hajime Shukuya
Designation :	Director
Address :	Asagaya-Kita, 5-46-E-101, Suginami Ku, Tokyo, Japan
Date of Birth/Age :	03.04.1958
Qualification :	Graduate
Date of Appointment :	11.08.2011
DIN No.:	03592335

KEY EXECUTIVES

Name :	Tatsuo Tsutsui *
Designation :	General Manager - Sales
Name :	Toshio Wani
Designation :	General Manager - Sales
Name :	Katsuhiro Tsunoda *
Designation :	General Manager - Sales
Name :	Kazushige Hayashi *
Designation :	General Manager - Sales
Name :	Takafumi Masukata *
Designation :	General Manager - Sales
Name :	Osamu Sasaki *
Designation :	General Manager - Sales
Name :	Naohisa Masuda
Designation :	Deputy General Manager - Sales
Name :	Takashi Yamamoto
Designation :	Deputy General Manager - Sales

Note:

* Indicates that the employee worked for part of the year

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.04.2013

Names of Shareholders	No. of Shares
Nippon Express Company Limited, Japan	2800000
Nippon Express HK Company Limited, Hong Kong	35000
R. Jayakumar	140000
P. Krishna Murthy	525000
Total	3500000

As on 26.04.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	81.00
Directors or relatives of directors	19.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Logistics Services.

Products/ Services :

Item Code No. (ITC Code)	440045
Product/ Service Description	Logistic Services

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loans	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. in Millions)
Loans taken for vehicles secured	0.000	0.509
Total	0.000	0.509

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560 025, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AACFD3771D
Holding Company :	Nippon Express Company Limited, Japan
Subsidiary Company :	Nittsu Logistics (India) Private Limited, India (w.e.f April 26 ,2011) CIN No.: U63090KA2011PTC058308
Fellow Subsidiaries :	Nippon Express Australia Pty Limited Nippon Express Belgium NV Nippon Express DO Brasil Nippon Express Canada Limited Nippon Express (China) Company Limited Nippon Express (Deutschland) GMBH, Germany Nippon Express (France) S.A Nippon Express (H.K.) Company Limited Nippon Express (Ireland) Limited Nippon Express (Italia) S.R.L Nippon Express (Malaysia) Sdn Bhd Nippon Express (Nederland) B.V. Nippon Express (New Zealand) Limited Nippon Express (Philippines) Corp Nippon Express Portugal S.A. Nippon Express (Shanghai) Company Limited Nippon Express (Singapore) Pte. Limited Nippon Express De Espana S.A. Nippon Express (Schweiz) AG Nippon Express (Taiwan) Company Limited Nippon Express Thailand Company Limited Nippon Express (UK) Limited Nippon Express U.S.A., Inc. Nippon Express De Mexico SA. DE C.V Nippon Express (Vietnam) Company Limited Nippon Express (Middle East) LLC Nippon Express (South China) Company Limited PT. Nippon Express Indonesia PT. Nittsu Lemo Indonesia Logistik Nittsu Sinotrans Logistic Dalian Limited, China Hi-tech Nittsu (Thailand) Company Limited NEX Global Logistics Korea Company Limited Nippon Express Austria Nippon Express (Istanbul) Global Logistics A.S

CAPITAL STRUCTURE

As on 26.04.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		35.000	35.000	35.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		719.961	555.704	498.567
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		754.961	590.704	533.567
LOAN FUNDS
1] Secured Loans		0.000	0.509	2.070
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.509	2.070
DEFERRED TAX LIABILITIES		0.000	0.000	1.082
TOTAL		754.961	591.213	536.719
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		276.283	279.050	87.744
Capital work-in-progress		4.832	0.943	26.436
INVESTMENT		39.996	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	729.060	428.012	240.649
	Cash & Bank Balances	298.000	203.089	318.732
	Other Current Assets	5.852	3.962	0.000
	Loans & Advances	93.254	74.736	131.398
Total Current Assets		1126.166	709.799	690.779
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	301.109	195.095	232.707
	Other Current Liabilities	276.160	181.768	21.816
	Provisions	115.047	21.716	13.717
Total Current Liabilities		692.316	398.579	268.240
Net Current Assets		433.850	311.220	422.539
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		754.961	591.213	536.719

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	2256.129	1342.940	851.325
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		427.160	135.275	70.813
Less/ Add	DEPRECIATION/ AMORTISATION		53.920	16.691	10.137
	PROFIT BEFORE TAX		373.239	118.584	60.676
Less	TAX		127.627	41.040	22.472
	PROFIT AFTER TAX		245.612	77.544	38.204
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		132.240	82.856	60.757
Less	APPROPRIATIONS
		Transfer to General Reserve	25.062	7.754	3.820
		Dividend Payable	70.000	17.500	10.500
		Dividend distribution tax provision	11.356	2.906	1.785
	BALANCE CARRIED TO THE B/S		271.434	132.240	82.856
	EARNINGS IN FOREIGN CURRENCY		968.164	409.449	253.685
	Earnings Per Share (Rs.)		70.17	22.16	17.32

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
Net Profit Margin (PBT/Sales)	(%)	16.54	8.83	7.12
Return on Total Assets (PBT/Total Assets}	(%)	26.61	11.99	7.79
Return on Investment (ROI) (PBT/Networth)		0.49	0.20	0.11
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.63	1.78	2.58

LOCAL AGENCY FURTHER INFORMATION

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	No
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

BUSINESS AND OPERATIONS OF THE COMPANY

The Company has achieved substantial turnover and profitability during the current year.

During the year Company established a new major subsidiary Company, Nittsu Logistics (India) Private Limited (incorporated on 26^th April 2011) mainly to focus on domestic trucking business and invested an amount of Rs.39.996 millions. Salient features and the audited statements of accounts of the new Company are provided separately.

First phase of High-tech Logistics Center, at New Industrial Complex, Neemrana, in the State of Rajasthan (inaugurated on 29^th November 2010) is functional for full year. During the Year Company added around 1.52 Lakhs Sq.ft area for its warehouse business, major area is for Parts Logistics Collection Centre at Chennai.

During the year Company has acquired 12 new trucks for Milk run services at Chennai, which takes the total number of trucks to 37.

FUTURE PLANS

The Company is planning to build and maintain a strong brand name in the field of Logistics in India and Overseas. The essential elements for this brand building and maintaining includes expansion, strengthening of network, high quality infrastructure set up, deploying cutting edge IT systems, qualified manpower and developing strong customer relationship.

With the help of empowered and dedicated employees and committed associates, the Company approaches the future with confidence to pursue Global Challenge.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Office Equipments

· Furniture and Fixtures

· Motor Vehicles

· Leasehold Improvements

· Computer

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.55.61
UK Pound	1	Rs.83.98
Euro	1	Rs.71.94

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		55

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.