MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	YOROZU JBM AUTOMOTIVE TAMIL NADU PRIVATE LIMITED
Registered Office :	Plot No. B-5 and B-6, SIPCOT Industrial Park, Vangadu Village, Sriperumbudur Taluk, District Kancheepuram– 602105, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	10.02.2011
Com. Reg. No.:	18-079145
Capital Investment / Paid-up Capital :	Rs.1500.000 Millions
CIN No.: [Company Identification No.]	U34201TN2011FTC079145
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEY03311A
PAN No.: [Permanent Account No.]	AAACY4647A
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Developing, Manufacturing and sale of Automotive Parts [Suspension].
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 3280000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating takes into consideration company’s moderate financial risk profile marked by weak operational performance and huge accumulated losses incurred by the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2014.

INFORMATION DENIED

MANAGEMENT NON CO-OPERATIVE (91-44-71158115)

LOCATIONS

Registered Office :	Plot No. B-5 and B-6, SIPCOT Industrial Park, Vangadu Village, Sriperumbudur Taluk, District Kancheepuram– 602105, Tamilnadu, India
Tel. No.:	91-44-71158115
Fax No.:	91-44-71158116
E-Mail :	ananthas@yorozu.co.in sm.corporate@lawindia.com aswaroop@jbm.co.in
Website :	http://www.yorozu-corp.co.jp

DIRECTORS

As on 05.08.2014

Name :

Mr. Fumihiro Kondo

Designation :

Managing director

Address :

2668-83, Imajuku-cho, Asohi-ku, Yokohama shi, Japan

Date of Birth/Age :

12.03.1969

Date of Appointment :

01.05.2013

DIN No.:

06602777

Name :

Mr. Akihiko Shido

Designation :

Director

Address :

5-9-12, Shimo - Sueyoshi Tsurumi-Ku, Yokohomashi 2208686, Japan

Date of Birth/Age :

30.01.1943

Date of Appointment :

01.08.2012

DIN No.:

03326342

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	U34201TN2011FTC079145	Yorozu JBM Automotive Tamil Nadu Private Limited	Director	01/08/12	16/02/11	-	Active	NO

Name :

Mr. Anand Swaroop Khandelwal

Designation :

Director

Address :

C - 5A/14, 2nd Floor, Janakpuri, New Delhi - 110058, India

Date of Birth/Age :

26.06.1956

Date of Appointment :

10.02.2011

DIN No.:

00004816

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	U74899DL1995PLC067432	JBM INTERNATIONAL LIMITED	Director	18/04/95	18/04/95	-	Active	NO
2	U34300DL2003PTC123285	Neel Auto Private Limited	Director	24/03/14	15/12/03	-	Active	NO
3	U45201DL2003PTC120054	SATISH BUILDWELL PRIVATE LIMITED	Director	03/03/05	03/03/05	-	Active	NO
4	U45201DL2006PTC144716	SHREEAUMJI BUILDWELL PRIVATE LIMITED	Director	12/01/06	12/01/06	-	Active	NO
5	U45201DL2006PTC144715	SHREEAUMJI PROPERTIES PRIVATE LIMITED	Director	12/01/06	12/01/06	-	Active	NO
6	U45201DL2006PTC144717	SHREEAUMJI BUILDERS PRIVATE LIMITED	Director	12/01/06	12/01/06	-	Active	NO
7	U74899DL2006PTC144712	HICOM INFRASTUCTURE PRIVATE LIMITED	Director	12/01/06	12/01/06	-	Active	NO
8	U70109DL2006PTC149250	SHREEAUMJI BUILDTECH PRIVATE LIMITED	Director	27/05/06	27/05/06	-	Active	NO
9	U70109DL2006PTC150431	COMTECH INFRASTRUCTURE PRIVATE LIMIED.	Director	30/06/06	30/06/06	-	Active	NO
10	U35990DL1995PLC071596	JAYBHARAT BREED LIMITED	Director	30/09/08	09/12/06	-	Amalgamated	NO
11	U13203DL2007PLC164433	ANS STEEL TUBES LIMITED	Director	17/06/13	01/11/07	-	Active	NO
12	U29220DL2007PTC171360	JBM MA AUTOMOTIVE PRIVATE LIMITED	Director	14/05/09	12/03/08	-	Active	NO
13	U45200DL2008PTC178619	JBM PROJECTS & INFRASTRUCTURE PRIVATE LIMITED	Director	27/05/08	27/05/08	-	Active	NO
14	U28910DL2008PLC185040	JBM MOTORS LIMITED	Director	19/11/08	19/11/08	-	Active	NO
15	U34300TN1998PTC046810	JBM AUTO SYSTEM PRIVATE LIMITED	Director	04/08/11	23/02/09	-	Active	NO
16	U80302DL2009PTC190802	JBM CADMIUM PRIVATE LIMITED	Director	02/06/09	02/06/09	-	Active	NO
17	U28931DL2008PTC174381	INDO TOOLINGS PRIVATE LIMITED	Director	20/08/09	01/07/09	28/01/13	Active	NO
18	U27100DL2009PLC187584	JBM OGIHARA AUTOMOTIVE INDIA LIMITED	Director	28/07/10	21/09/09	-	Active	NO
19	U28900DL2010PLC211731	M J CASTING LIMITED	Director	23/12/10	23/12/10	-	Active	NO
20	U34201TN2011FTC079145	Yorozu JBM Automotive Tamil Nadu Private Limited	Director	10/02/11	10/02/11	-	Active	NO
21	U74140DL2011PTC227157	JBM Corporate Services Private Limited	Director	08/11/11	08/11/11	-	Active	NO
22	U28111DL2006PTC155129	ARCELOR NEEL TAILORED BLANK PRIVATE LIMITED	Alternate director	19/06/12	19/06/12	-	Active	NO
23	U29253HR2012PTC046397	JBM Kanemitsu Pulleys Private Limited	Alternate director	17/07/12	17/07/12	06/03/14	Active	NO
24	U74140DL2007PTC158597	NEEL METAL FANALCA ENVIRONMENT MANAGEMENT PRIVATE LIMITED	Nominee director	20/12/12	20/12/12	-	Active	NO
25	U40300DL2013PTC249282	JBM Solar Private Limited	Director	11/03/13	11/03/13	-	Active	NO
26	U40106DL2013PTC250286	JBM Solar Power Private Limited	Director	04/04/13	04/04/13	-	Active	NO
27	U74140DL2003PTC118916	K R CHAWLA CONSULTING PRIVATE LIMITED	Additional director	26/07/13	26/07/13	-	Active	NO
28	U70101DL2002PTC117107	HN PROPERTIES PRIVATE LIMITED	Director	09/09/14	26/07/13	-	Active	NO

KEY EXECUTIVES

Name :	Mr. V Anantha Subramanian
Designation :	Secretary
Address :	3-257, VOC Street, Karapakkam, Chennai – 600097, Tamilnadu, India
Date of Birth/Age :	25.03.1985
Date of Appointment :	09.05.2012
PAN No.:	BAYPS0340C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.08.2014

Names of Shareholders	No. of Shares	%age
Yorozu Corporation, Japan	140000000	93.33
JBM Auto System Private Limited, India	10000000	6.67
Total	150000000	100.00

As on 05.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	93.33
Bodies corporate	6.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Developing, Manufacturing and sale of Automotive Parts [Suspension].

Products :

Item Code No. (ITC Code)	Product Description
87089900	Parts and Accessories of the Motor Vehicles of Headings

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Not Divulged

Auditors :
Name :	Satish and Sankar Chartered Accountants
Address :	Old No. 17, New No 6 , Muthalamman Koil St West Mambalam, Chennai – 600033, Tamilnadu, India
PAN No. :	ABXFS5342K
Memberships :	--
Collaborators :	--
Ultimate Holding Company:	Yorozu Corporation

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1500.000	1500.000
(b) Reserves & Surplus	(351.930)	(171.388)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1148.070	1328.612
(3) Non-Current Liabilities
(a) long-term borrowings	1703.341	1189.922
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1703.341	1189.922
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	214.139	513.251
(c) Other current liabilities	776.098	38.448
(d) Short-term provisions	0.000	0.365
Total Current Liabilities (4)	990.237	552.064
TOTAL	3841.648	3070.598
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2020.921	960.751
(ii) Intangible Assets	52.005	61.344
(iii) Capital work-in-progress	68.385	786.692
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	15.341	0.000
Total Non-Current Assets	2156.652	1808.787
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	59.957	122.402
(c) Trade receivables	374.777	209.030
(d) Cash and cash equivalents	552.543	759.835
(e) Short-term loans and advances	236.290	0.000
(f) Other current assets	461.429	170.544
Total Current Assets	1684.996	1261.811
TOTAL	3841.648	3070.598

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		TOTAL	1204.424	233.237
Less	EXPENSES
		TOTAL	1389.753	404.625
	PROFIT/ (LOSS) BEFORE TAX		(185.329)	(171.388)
Less	TAX		0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(185.329)	(171.388)
	Earnings / (Loss) Per Share (Rs.)		(1.23)	(1.14)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	(4.91)	(7.50)
Return on Investment (ROI) (PBT/Networth)		(0.16)	(0.130
Debt Equity Ratio (Total Debt/Networth)		1.48	0.90
Current Ratio (Current Asset/Current Liability)		1.70	2.29

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	1500.000	1500.000
Reserves & Surplus	(171.388)	(351.930)
Net worth	1328.612	1148.070
long-term borrowings	1189.922	1703.341
Short term borrowings	0.000	0.000
Total borrowings	1189.922	1703.341
Debt/Equity ratio	0.896	1.484

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Total Income	233.224	1204.424
	#REF!	416.424

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Total Income	233.224	1204.424
Profit	(171.388)	(185.329)
	(73.49%)	(15.39%)

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 two years	Yes
12]	Profitability for last two 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	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

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Other loans and advances	1703.341	1189.922
Total	1703.341	1189.922

INDEX OF CHARGES

No Charges Exist for Company

BACKGROUND

The company, incorporated on February 10, 2011 as a Private limited company. The Company was incorporated in the State of Tamil Nadu, India. The Company is a subsidiary of Yorozu Corporation, Japan (YCJ). YC Japan holds 93.33% of the share capital of the Company. The Company is engaged in developing, manufacturing and sale of automotive parts [suspension]. The Company is also engaged in sale of production tooling die and equipment.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and Equipment

œ Furniture and Fixtures

œ Vehicles

œ Office Equipment

œ Computer Equipment’s

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.62.14
UK Pound	1	Rs.97.05
Euro	1	Rs.77.37

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.