MIRA INFORM REPORT

Report Date :

02.04.2014

IDENTIFICATION DETAILS

Name :	HEROHAMA INDIA PRIVATE LIMITED
Registered Office :	501, 5^th Floor, Sethi Bhavan, Rajendra Place, New Delhi – 110008
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.11.2007
Com. Reg. No.:	55-170694
Capital Investment / Paid-up Capital :	Rs.39.442 Millions
CIN No.: [Company Identification No.]	U74900DL2007PTC170694
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Hospitality Services.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company’s are low. Borrowings of the company has also increased during 2013. However, trade relations are reported to be fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

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. M. Kumar Singh
Designation :	Accounts Department
Contact No.:	91-11-25755468
Date :	01.04.2014

LOCATIONS

Registered Office :	501, 5^th Floor, Sethi Bhavan, Rajendra Place, New Delhi – 110008, India
Tel. No.:	91-11-25755468
Fax No.:	91-11-25754042
E-Mail :	ms@hirohama-india.co.in
Website :	www.hirohama-india.com
Location :	Rented
Branches :	· Mumbai · Chennai · Faridabad

DIRECTORS

AS ON 27.09.2013

Name :

Mr. Kojiro Honda

Designation :

Managing Director

Address :

A-335, Ground Floor, Defence Colony, New Delhi – 110024, India

Date of Birth/Age :

24.01.1976

Date of Appointment :

05.05.2008

DIN No.:

01920625

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	U74900DL2007PTC170694	HIROHAMA INDIA PRIVATE LIMITED	Managing director	05/05/2008	08/01/2008	Active	NO
2	U55101HR2013PTC050583	KUURAKU INDIA PRIVATE LIMITED	Director	04/10/2013	04/10/2013	Active	NO

Name :

Mr. Vishal Kailash Chandra Jhunjhunwala

Designation :

Whole-time Director

Address :

81, Panorama, 203, Walkeshwar Road, Malabar Hills, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

29.07.1978

Date of Appointment :

30.09.2009

DIN No.:

00359872

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	U34100MH1992PTC068200	HIND ELASTOMERS PRIVATE LIMITED	Director	01/07/1996	01/07/1996	Active	NO
2	U24139DL2005PTC142830	JMF SYNTHETICS INDIA PRIVATE LIMITED	Whole-time director	31/03/2007	22/11/2005	Active	NO
3	U74300DL2007PTC159967	Elastomer Technologies and Consulting India Private Limited	Director	01/03/2007	01/03/2007	Strike off	NO
4	U74900DL2007PTC170694	HIROHAMA INDIA PRIVATE LIMITED	Whole-time director	30/09/2009	23/11/2007	Active	NO
5	U65922MH1992PTC065137	SURMANGAL CAPITAL PRIVATE LIMITED	Director	30/09/2008	20/02/2008	Active	NO
6	U55101HR2013PTC050583	KUURAKU INDIA PRIVATE LIMITED	Director	04/10/2013	04/10/2013	Active	NO

Name :

Mr. Yuko Honda

Designation :

Whole-time Director

Address :

301, 3^rd Floor, Block No.3, Uniworld City West, Sector 31/41, Silokhra, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

30.10.1975

Date of Appointment :

30.09.2008

DIN No.:

02331695

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	U74900DL2007PTC170694	HIROHAMA INDIA PRIVATE LIMITED	Whole-time director	30/09/2009	17/09/2008	Active	NO

KEY EXECUTIVES

Name :	Mr. M. Kumar Singh
Designation :	Accounts Department

MAJOR SHAREHOLDERS

AS ON 27.09.2013

Names of Shareholders	No. of Shares
Kailash Chandra Shankarlal Jhunjhunwala	723632
Vishal K Jhunjhunwala	141154
Kojiro Honda	1000
Chandrakanta Jhunjhunwala	97096
Gautam Jhunjhunwala	84644
Sanju Jhunjhunwala	84644
Shweta Jhunjhunwala	97144
M. L. Sharma	5000
V. K. Tondon	40000
Dr. G. P. Bhatnagar	13333
Ashish Jhunjhunwala	5000
Vikas Aggarwal	5000
Mahender Kumar Singh	5000
Hirohama Corporation, Japan	1338957
Sub-Hirohama Corporation, Japan	1302555
Total	3944159

Equity Share Break up (Percentage of Total Equity)

AS ON 27.09.2013

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	66.97
Directors or relatives of Directors	31.18
Other top fifty shareholders	1.85
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing Hospitality Services.
Terms :
Purchasing :	Depend

GENERAL INFORMATION

Customers :

Others

No. of Employees :

100 (Approximately)

Bankers :

· ICICI bank Limited

· HDFC bank limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans for Vehicle	2.363	5.009
Short Term Borrowings
From Banks
Other Draft Facility	0.673	0.603
Working Capital Demand Loan	4.000	0.000
Total	7.036	5.612

Banking Relations :	--
Auditors :
Name :	G. M. Kapadia and Company Chartered Accountants
Address :	Ground Floor, E-22, Greater Kailash Part-1, New Delhi – 110048, India
Tel. No.:	91-11-29241327 / 3259 / 3547 / 41082273
PAN No.:	AAAFG4713G
Sister Concern :	JMS Synthetic India Private Limited

CAPITAL STRUCTURE

AS ON 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3944159	Equity Shares	Rs.10/- each	Rs.39.442 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	39.442	39.442	19.194
(b) Reserves & Surplus	36.490	34.113	5.440
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	75.932	73.555	24.634
(3) Non-Current Liabilities
(a) long-term borrowings	109.796	5.009	5.562
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.444	0.879	0.448
Total Non-current Liabilities (3)	111.240	5.888	6.010
(4) Current Liabilities
(a) Short term borrowings	4.673	0.603	0.472
(b) Trade payables	1.243	0.889	1.154
(c) Other current liabilities	19.793	19.952	11.404
(d) Short-term provisions	0.369	0.318	2.311
Total Current Liabilities (4)	26.078	21.762	15.341
TOTAL	213.250	101.205	45.985
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	66.853	69.966	24.357
(ii) Intangible Assets	0.090	0.109	0.034
(iii) Capital work-in-progress	41.925	1.721	0.427
(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)	2.384	1.230	0.313
(d) Long-term Loan and Advances	23.383	8.629	5.273
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	134.635	81.655	30.404
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.084	0.091	0.120
(c) Trade receivables	8.044	7.897	6.350
(d) Cash and cash equivalents	58.970	2.463	2.075
(e) Short-term loans and advances	11.295	9.092	7.036
(f) Other current assets	0.222	0.007	0.000
Total Current Assets	78.615	19.550	15.581
TOTAL	213.250	101.205	45.985

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	95.697	83.937	48.701
		Other Income	0.852	0.618	0.208
		TOTAL (A)	96.549	84.555	48.909
Less	EXPENSES
		Cost of Materials Consumed	4.853	4.067	2.761
		Employees benefits expense	19.314	15.390	6.590
		Operating Expenses	55.297	42.193	0.000
		Other expenses	5.266	5.500	27.497
		Prior Period Items	(0.047)	0.004	0.074
		TOTAL (B)	84.683	67.154	36.922
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.866	17.401	11.987
Less	FINANCIAL EXPENSES (D)		1.394	1.237	0.593
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.472	16.164	11.394
Less	DEPRECIATION/ AMORTISATION (F)		7.149	9.808	4.234
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		3.323	6.356	7.160
Less	TAX (H)		0.862	1.980	2.223
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		2.461	4.376	4.937
	Earnings Per Share (Rs.)		0.62	2.20	2.93

Expected Sales (2013-2014): Rs.120.000 Millions

The above information has been parted by Mr. M Kumar Singh (Accounts Department)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.55	5.18	10.09
Net Profit Margin (PBT/Sales)	(%)	3.47	7.57	14.70
Return on Total Assets (PBT/Total Assets}	(%)	1.97	6.47	15.82
Return on Investment (ROI) (PBT/Networth)		0.04	0.09	0.29
Debt Equity Ratio (Total Debt /Networth)		1.51	0.08	0.24
Current Ratio (Current Asset/Current Liability)		3.01	0.90	1.02

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	19.194	39.442	39.442
Reserves & Surplus	5.440	34.113	36.490
Net worth	24.634	73.555	75.932
long-term borrowings	5.562	5.009	109.796
Short term borrowings	0.472	0.603	4.673
Total borrowings	6.034	5.612	114.469
Debt/Equity ratio	0.245	0.076	1.508

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	48.701	83.937	95.697
		72.352	14.011

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	48.701	83.937	95.697
Profit	4.937	4.376	2.461
	10.14%	5.21%	2.57%

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	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)	No
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

OPERATIONS:

During the year 2012-13, operational revenue and other incomes of the company has been increased to Rs.96.549 Millions as compared to Rs.84.555 Millions for the previous year. However, the net profit for the year has been declined from Rs.4.376 Millions of the previous year to Rs.2.461 Millions for the current year. The directors are hopeful of improved results in the current year 2013-14.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
External Commercial Borrowing	107.433	0.000
Total	107.433	0.000

NO CHARGES EXIST FOR COMPANY.

FIXED ASSETS:

· Leasehold Land

· Plant and Equipment

· Furniture and Fixture

· Vehicles

· Office Equipment

· Computer

· Computer 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 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.60.09
UK Pound	1	Rs.99.84
Euro	1	Rs.82.57

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NKT

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	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.