MIRA INFORM REPORT

Report Date :

24.04.2014

IDENTIFICATION DETAILS

Name :	MARUICHI KUMA STEEL TUBE PRIVATE LIMITED
Registered Office :	Plot No.27, Sec-2A,  IMT Manesar, Gurgaon – 122050, Haryana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.11.2003
Com. Reg. No.:	05-035250
Capital Investment / Paid-up Capital :	Rs.89.455 Millions
CIN No.: [Company Identification No.]	U27109HR2003PTC035250
PAN No.: [Permanent Account No.]	AACCK2624D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Tubes.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 3700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track record. Financial position of the company seems to be good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = A-
Rating Explanation	Have adequate degree of safety and carry low credit risk
Date	29.10.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A2+
Rating Explanation	Have strong degree of safety and carry low credit risk
Date	29.10.2013

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 DENIED

Management Non-Cooperative (Tel No.: 91-124-2291667)

LOCATIONS

Registered Office :	Plot No.27, Sec-2A,  IMT Manesar, Gurgaon – 122050, Haryana, India
Tel. No.:	91-124-2291667 / 4213056 / 4213058
Fax No.:	91-124-2291669
E-Mail :	manish@kumastainlesstubes.com info@kumastainlesstubes.com
Website :	http://www.maruichikuma.com

DIRECTORS

As on 30.07.2013

Name :

Mr. Mukul Varma

Designation :

Managing Director

Address :

D-31, Raheja Atlantis, Seclor-31, Gurgaon- 122001, Haryana, India

Date of Birth/Age :

07.03.1959

Date of Appointment :

01.04.1910

PAN No.:

ABRPV5479J

DIN No.:

00465901

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	U27109HR2003PTC035250	Maruichi Kuma Steel Tube Private Limited	Managing director	01/04/2010	27/06/2006	-	Active	NO
2	U29253HR2009FTC039557	Kusakabe India Private Limited	Director	01/10/2009	01/10/2009	-	Active	NO

Name :

Mr. Hiroyuki Suzuki

Designation :

Director

Address :

2-1 1-3, Kitabatake, Abeno- Ku, Osaka, 5450035-Japan

Date of Birth/Age :

07.02.1946

Date of Appointment :

27.10.2009

DIN No.:

02816145

Name :

Mr. Takeshi Takeuchi

Designation :

Director

Address :

2-3-5-401. Mikage, Higashinada -Ku, Kobe, 6580047-Japan

Date of Birth/Age :

03.04.1954

Date of Appointment :

27.10.2009

DIN No.:

02817187

Name :

Mr. Shizuka Hayashi

Designation :

Director

Date of Birth/Age :

08.02.1975

Date of Appointment :

30.07.2013

DIN No.:

03316927

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	U27105KA1999PTC025012	TOYOTA TSUSHO INDIA PRIVATE LIMITED	Managing director	01/04/2013	27/11/2010	-	Active	NO
2	U25209MH1991PLC060602	KRYFS POWER COMPONENTS LIMITED	Nominee director	06/08/2012	18/05/2012	-	Active	NO
3	U27109HR2003PTC035250	Maruichi Kuma Steel Tube Private Limited	Director	30/07/2013	15/04/2013	-	Active	NO
4	U74140KA1998PTC024262	TOYOTA TECHNO PARK INDIA PRIVATE LIMITED	Alternate director	22/05/2013	22/05/2013	-	Active	NO
5	U85100KA2010PTC055258	TAKSHASILA HEALTHCARE AND RESEARCH SERVICE PRIVATE LIMITED	Nominee director	10/08/2013	10/08/2013	-	Active	NO
6	U85110KA2012PTC063508	TAKSHASILA HOSPITALS OPERATING PRIVATE LIMITED	Nominee director	10/08/2013	10/08/2013	-	Active	NO

Name :

Mr. Yoichiro Okano

Designation :

Director

Address :

6-14-1 9, Kozukayama, Tarumi- Ku,Kobe City,Hyogo-Pref., Japan – 6550002

Date of Birth/Age :

27.12.1953

Date of Appointment :

18.06.2012

DIN No.:

05115276

Name :

Mr. Satoshi Hashimoto

Designation :

Director

Address :

Royal ARC, Ueda Hills, # 101, 2-103-2, Moto-Ueda, Tenpaku-Ku, Nagoyashi,

Japan 4680009

Date of Birth/Age :

15.10.1957

Date of Appointment :

30.07.2013

DIN No.:

06576454

KEY EXECUTIVES

Name :	Mr. Manish Kumar Jain
Designation :	Secretary
Address :	Mr. K. Sharma, House No. 547, Sector-14, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	08.02.1975
Date of Appointment :	18.10.2006
PAN No.:	AFHPJ2246K

MAJOR SHAREHOLDERS

As on 30.07.2013

Names of Shareholders	No. of Shares	% of Holding
Maruichi Steel Tube Limited, Japan	6261818	70.00
Toyota Tsusho Corporation, Japan	2683636	30.00
Total	8945454	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.07.2013

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 :

Manufacturing of Tubes.

GENERAL INFORMATION

Customers :

• Toyota
• Honda
• Maruti Suzuki
• Chevrolet
• Ford
• Fiat
• Hyundai
• Renault
• Tata
• Mahindra
• Hero
• Yamaha
• Suzuki

No. of Employees :

Information denied by management / (Approximately)

Bankers :

• HDFC Bank Limited
• ICICI Bank Limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks	0.000	58.384
Loans taken for fixed assets	0.397	1.021
Short Term Borrowings
Rupee term loans from banks	215.524	148.310
Total	215.921	207.715

Banking Relations :	--
Auditors :
Name :	Uberoi Sood and Kapoor Chartered Accountants
Address :	606, Vishal Bhawan,95, Nehru Place, Delhi – 110019, India
PAN No.:	AAAFU1674L
Holding Company :	Maruichi Steel Tube Limited, Japan
Fellow Subsidiary Company :	Maruichi American Corporation Maruichi Leavitt Pipe and Tube LLC Maruich Sun Steel Joint Stock Company Hokkaido Maruichi Steel Tube Limited Kyusyu Maruichi Steel Tube Limited Shikoku Maruichi Steel Tube Limited Alpha Metal Company Limited MKK USA INC Maruichi Sun Steel (Hanoi) Company Limited Maruichi Kohan Limited Maruichi Mex S.A de C.V.
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Toyota Tsusho Corporation Toyota Tsusho Korea Corporation

CAPITAL STRUCTURE

As on 30.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8945454	Equity Shares	Rs.10/- each	Rs.89.455 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	89.455	89.455	89.455
(b) Reserves & Surplus	838.189	763.827	647.123
(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)	927.644	853.282	736.578
(3) Non-Current Liabilities
(a) long-term borrowings	0.397	59.405	50.518
(b) Deferred tax liabilities (Net)	29.005	27.516	24.798
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	4.497	3.547	2.445
Total Non-current Liabilities (3)	33.899	90.468	77.761
(4) Current Liabilities
(a) Short term borrowings	215.524	148.310	218.611
(b) Trade payables	437.663	247.918	240.138
(c) Other current liabilities	71.094	20.084	12.829
(d) Short-term provisions	37.238	6.959	22.893
Total Current Liabilities (4)	761.519	423.271	494.471
TOTAL	1,723.062	1,367.021	1,308.810
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	281.682	274.781	252.151
(ii) Intangible Assets	0.560	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.017
(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	0.000	0.000
(d) Long-term Loan and Advances	13.967	14.089	19.421
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	296.209	288.870	271.589
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	532.689	300.030	397.604
(c) Trade receivables	432.389	399.652	268.216
(d) Cash and cash equivalents	337.516	315.306	314.732
(e) Short-term loans and advances	124.259	63.163	56.669
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1,426.853	1,078.151	1,037.221
TOTAL	1,723.062	1,367.021	1,308.810

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Sales ( Net of Excise Duty) and Job Work		1700.036	1439.471	1052.649
		Other Income		NA	NA	NA
		TOTAL		NA	NA	NA
Less	EXPENSES			NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			184.604	184.842	170.385
Less	DEPRECIATION/ AMORTISATION			23.226	20.558	16.773
	PROFIT/(LOSS) BEFORE TAX			161.378	164.284	153.611
Less	TAX			55.095	47.581	50.422
	PROFIT/(LOSS) AFTER TAX			106.283	116.703	103.189
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	4.858	7.802	0.000
	TOTAL EARNINGS			4.858	7.802	0.000
	IMPORTS
			Raw Materials	1238.899	80.989
			Capital Goods	25.478	0.646
			Components and Spare Parts	15.683	16.764
	TOTAL IMPORTS			1280.060	98.399	NA
	Earnings Per Share (Rs.)			11.88	13.05	23.25

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	9.49	11.41	14.59
Return on Total Assets (PBT/Total Assets}	(%)	9.37	12.02	11.74
Return on Investment (ROI) (PBT/Networth)		0.17	0.19	0.21
Debt Equity Ratio (Total Debt /Networth)		0.23	0.24	0.37
Current Ratio (Current Asset/Current Liability)		1.87	2.55	2.10

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	89.455	89.455	89.455
Reserves & Surplus	647.123	763.827	838.189
Net worth	736.578	853.282	927.644
long-term borrowings	50.518	59.405	0.397
Short term borrowings	218.611	148.310	215.524
Total borrowings	269.129	207.715	215.921
Debt/Equity ratio	0.365	0.243	0.233

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 ( Net of Excise Duty) and Job Work	1,052.649	1,439.471	1,700.036
		36.747	18.101

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 ( Net of Excise Duty) and Job Work	1,052.649	1,439.471	1,700.036
Profit	103.189	116.703	106.283
	9.80%	8.11%	6.25%

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

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10238498	13/09/2010	324,800,000.00	ICICI BANK LIMITED	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, India	A94145638

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.07
UK Pound	1	Rs.102.77
Euro	1	Rs.84.49

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	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		49

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.