MIRA INFORM REPORT

Report Date :

01.11.2013

IDENTIFICATION DETAILS

Name :	MUSASHI PAINT INDIA PRIVATE LIMITED
Registered Office :	P-37/2, 7^th Avebue, Domestic Tariff Area, Mahindra World City, Anjur Village, Chengalpet Taluk – 603002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.09.2010
Com. Reg. No.:	18-077457
Capital Investment / Paid-up Capital :	Rs.250.000 Millions
CIN No.: [Company Identification No.]	U24100TN2010FTC077457
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Distributor of paints.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Reserves of the company appears to be low. However, sales and profit margins of the company appears to be decent. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – 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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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 :	Ms. Archana
Designation :	Finance Department
Contact No.:	91-44-47405650
Date :	30.10.2013

LOCATIONS

Registered Office :	P-37/2, 7^th Avebue, Domestic Tariff Area, Mahindra World City, Anjur Village, Chengalpet Taluk – 603002, Tamilnadu, India
Tel. No.:	91-44-47405650
Fax No.:	Not Available
E-Mail :	Anish.nair@musashipaint.com
Website :	www.musashipaint.com
Location:	Owned

DIRECTORS

As on 20.09.2013

Name :

Mr. Ryoji Uchida

Designation :

Managing Director

Address :

29-26 Miyanotani, Terada, Joyo-Shi, Kyoto. 6100121, Japan

Date of Birth/Age :

15.10.1967

Date of Appointment :

01.03.2012

DIN No.:

03134059

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	U24100TN2010FTC077457	MUSASHI PAINT INDIA PRIVATE LIMITED	Managing director	01/03/2012	23/09/2010	-	Active	NO

Name :

Mr. Anish Viswanathan Nair

Designation :

Director

Address :

316, Block - C (Even and Odd), Sarojini Nagar, New Delhi – 110023, India

Date of Birth/Age :

06.03.1986

Date of Appointment :

29.09.2012

PAN No.:

AIVPN6234C

DIN No.:

02836726

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	U93000TN2009PTC073961	TS REAL ESTATE CONSULTANCY PRIVATE LIMITED	Director	17/12/2009	17/12/2009	25/03/2011	Active	NO
2	U29142HR2010PTC039951	NIHON KOHNETSU INDIA PRIVATE LIMITED	Director	12/01/2010	12/01/2010	30/08/2012	Active	NO
3	U51909TN2010PTC075266	MEISEI TRADING INDIA PRIVATE LIMITED	Director	07/04/2010	07/04/2010	30/09/2011	Active	NO
4	U51109HR2010PTC040743	SANKYO TRADING INDIA PRIVATE LIMITED	Director	23/06/2010	23/06/2010	19/10/2010	Active	NO
5	U28999TN2010PTC076660	SAKAZAKI ENGRAVING INDIA PRIVATE LIMITED	Director	20/07/2010	20/07/2010	17/02/2012	Active	NO
6	U74140HR2010PTC041375	TOKYO CONSULTING FIRM HUMAN RESOURCES PRIVATE LIMITED	Director	18/10/2010	18/10/2010	15/12/2011	Active	NO
7	U52399PN2011PTC138603	SINTO ENGINEERING INDIA PRIVATE LIMITED	Director	21/02/2011	21/02/2011	07/03/2011	Active	NO
8	U29253TN2011PTC079422	TSUGAMI PRECISION ENGINEERING INDIA PRIVATE LIMITED	Director	01/03/2011	01/03/2011	17/03/2011	Active	NO
9	U52100KA2011FTC057673	KOYO ENGINEERING INDIA PRIVATE LIMITED	Director	17/03/2011	17/03/2011	06/07/2011	Active	NO
10	U21098MH2011FTC220637	BUNSHODO TRADING PRIVATE LIMITED	Director	08/08/2011	08/08/2011	11/08/2011	Active	NO
11	U24100TN2010FTC077457	MUSASHI PAINT INDIA PRIVATE LIMITED	Director	26/09/2012	30/03/2012	-	Active	NO

Name :

Yee Kim Ngee

Designation :

Additional Director

Address :

No. 17, Jalan Batu Unjur 3, Taman Bayu Perdana, Klang, 41200, Malaysia

Date of Birth/Age :

15.06.1969

Date of Appointment :

20.09.2013

DIN No.:

06645613

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	U24100TN2010FTC077457	MUSASHI PAINT INDIA PRIVATE LIMITED	Director	20/09/2013	30/07/2013	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Archana
Designation :	Finance Department
Name :	Mr. Haripriya Rangarajan
Designation :	Secretary
Address :	"Chitrakuta", Old No. 6, New No.15, Theagaraya Gramani Street, T Nagar, Chennai – 600017, Tamilnadu, India
Date of Birth/Age :	15.07.1978
Date of Appointment :	05.12.2012
DIN No.:	ACHPH3413R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 20.09.2013

Names of Shareholders	No. of Shares
Musashi Paint Industry Company Limited, Japan	1495000
Musashi Paint Company Limited, Japan	5000
Musashi Paint Corporation Sdh Bhd (KL), Malaysia	1000000
Total	2500000

Equity Share Break up (Percentage of Total Equity)

As on 20.09.2013

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Distributor of paints.
Imports :
Products :	Finished Goods
Countries :	Japan Malaysia
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit, Depend

GENERAL INFORMATION

No. of Employees :	20 (Approximately)
Bankers :	Bank of Tokya

Banking Relations :
Auditors :
Name :	Jaggi Malhotra and Associates Chartered Accountants
Address :	B-1a/77-C, Janak Puri, New Delhi-110058, India
PAN N Income-tax PAN of auditor or auditor's firm :	AKDPM5936G
Ultimate Holding Company:	Musashi Paint Company Limited, Japan Musashi Paint Industry Company Limited, Japan Musashi Paint Company Limited SDNBHD(KL)
Holding Company:	Musashi Paint Company Limited SDNBHD(KL)
Fellow subsidiary:	Musashi Paint (China) Company Limited
Other Related Party:	Musashi Paints Trading Hongkong Limited

CAPITAL STRUCTURE

As on 20.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.100/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.100/- each	Rs. 250.000 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1635000	Equity Shares	Rs.100/- each	Rs. 163.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	163.500	46.500	46.500
(b) Reserves & Surplus	8.122	2.983	0.454
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	86.500	50.000	0.000
Total Shareholders’ Funds (1) + (2)	258.122	99.483	46.954
(3) Non-Current Liabilities
(a) long-term borrowings	1.676	1.676	1.676
(b) Deferred tax liabilities (Net)	0.150	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	1.826	1.676	1.676
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	6.188	1.060	0.347
(c) Other current liabilities	0.150	0.177	0.057
(d) Short-term provisions	1.587	1.657	0.363
Total Current Liabilities (4)	7.925	2.894	0.767
TOTAL	267.873	104.053	49.397
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	49.541	39.030	39.062
(ii) Intangible Assets	0.058	0.054	0.000
(iii) Capital work-in-progress	101.301	7.235	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.295	0.000
(d) Long-term Loan and Advances	1.477	1.752	0.701
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	152.377	48.366	39.763
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5.091	0.000	0.000
(c) Trade receivables	6.425	0.000	0.904
(d) Cash and cash equivalents	102.028	53.967	7.390
(e) Short-term loans and advances	0.353	0.000	0.000
(f) Other current assets	1.599	1.720	1.340
Total Current Assets	115.496	55.687	9.634
TOTAL	267.873	104.053	49.397

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	27.958	10.129	2.725
		Other Income	1.114	0.490	0.000
		TOTAL	29.072	10.619	2.725
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	22.128	6.666	1.959
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		6.944	3.953	0.766
Less/ Add	DEPRECIATION/ AMORTISATION		0.494	0.415	0.068
	PROFIT BEFORE TAX		6.450	3.538	0.698
Less	TAX		1.312	1.008	0.244
	PROFIT AFTER TAX		5.138	2.530	0.454
	Earnings Per Share (Rs.)		2.03	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	17.67	23.83	16.66
Net Profit Margin (PBT/Sales)	(%)	23.07	34.93	25.61
Return on Total Assets (PBT/Total Assets}	(%)	3.87	3.67	1.41
Return on Investment (ROI) (PBT/Networth)		0.02	0.04	1.49
Debt Equity Ratio (Total Debt /Networth)		0.01	0.02	0.04
Current Ratio (Current Asset/Current Liability)		14.57	19.24	12.56

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

NOTE: Registered office of the company has been shifted from Krish Varuna, Flat No.1, No.7, 31st Cross Street, Besant Nagar, Chennai – 600090, Tamil Nadu, India to the present address w.e.f 29.07.2013

INDEX OF CHARGES: No Charges Exist for Company

PERFORMANCE:

The Company’s revenue for the year stood at Rs. 29.000 Millions as against Rs. 10.600 Millions in the previous year. The Profit after tax is Rs. 5.138 Millions as against Rs. 2.529 Millions in the previous year.

PROSPECTS FOR THE FUTURE:

The Company foresees a bright and enduring opportunity in the Paint Industry. It has expansion plans and acquired an industrial plot for new plant in the state of Haryana. We intend to commence our manufacturing activities by the next quarter in our southern plant. Organizational prosperity is nurtured, not inherited. The Company has always worked to identify, cultivate and enhance the competencies that make growth possible. The Company is continuously trying to improve its performance and it has a long way to go. The Company is continuously trying to find new avenues of business. The future of the Company is bright enough for both the shareholders and its employees as there are immense opportunities for growth in this sector.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Loans and advances from related parties	1.676	1.676
Total	1.676	1.676

FIXED ASSETS

Tangible assets

• Land
• Plant and equipment
• Furniture and fixtures
• Office equipment
• Computer equipments
• Other equipments

Intangible assets

• Computer software
• Brands and trade marks
• Trade marks

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.61.41
UK Pound	1	Rs.98.29
Euro	1	Rs.84.12

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	3
--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		43

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.