MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	SMC PNEUMATICS INDIA PRIVATE LIMITED
Registered Office :	B-94, Ashoka Enclave, Piragarhi, Rohtak Road, New Delhi - 110087
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.01.1995
Com. Reg. No.:	55-064419
Capital Investment / Paid-up Capital :	Rs. 2181.212 Millions
CIN No.: [Company Identification No.]	U74899DL1995PTC064419
TAN No.: [Tax Deduction & Collection Account No.]	DELS09347C
PAN No.: [Permanent Account No.]	AABCS8137L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Seller and Trader of Air Control Equipment’s.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 11590000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Overall financial position of the company is decent. Trade relations are reported to be fair. Business is active. Payments are reported to be usually 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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 DECLINED BY

Name :	Mr. P.K. Sood
Designation :	Sales Head
Contact No.:	91-9810096751
Date :	08.12.2014

LOCATIONS

Registered Office :	B-94, Ashoka Enclave, Piragarhi, Rohtak Road, New Delhi – 110087, India
Tel. No. :	Not Available
Mobile No. :	91-9810096751 (Mr. P.K. Sood)
Fax No. :	Not Available
E-Mail :	info@smcindia.in smcindia@ndc.vsnl.net.in
Website :	www.smcpneumaticsproducts.in
Factory 1:	D-107 to 112, Phase II Extn., Dist: Gautam Budh Nagar, Noida – 201305, Uttar Pradesh, India
Tel. No.	91-120-4780222/ 2568730
Fax No.:	91-120-2568933/ 2563111
Factory 2:	A-4, Sector-88, Dist: Gautam Budh Nagar, Noida – 201305, Uttar Pradesh, India
Tel. No.	91-120-2449222
Factory 3:	P-41/3, Mahindra World City, Nathamsub (P.O- Nathamsub), Chengalpet Taluk, Kancheepuram District - 603002, Tamilnadu, India
Tel. No.	91-44-27464488, 27464411
Branch Offices :	Located at Bangalore Coimbatore Mumbai Chennai Pune Ahmedabad Hyderabad Kolkatta Chandigarh Nasik Gurgaon Ludhiana Rudrapur

DIRECTORS

As on 19.09.2014

Name :

Mr. Rajendra Kumar Malhotra

Designation :

Managing director

Address :

B-11, First Floor, Pamposh Enclave, Greater Kailash-1, New Delhi - 110048, India

Date of Birth/Age :

17.12.1958

Date of Appointment :

22.03.1999

DIN No. :

00139060

Name :

Mr. Dinesh Chandra Sidana

Designation :

Director

Address :

A-15, Trikuta Hills, C-58/27, Sector-62, Noida - 201307, Uttar Pradesh, India

Date of Birth/Age :

10.05.1953

Date of Appointment :

22.03.1999

DIN No. :

00244693

Name :

Eiji Ohashi

Designation :

Director

Address :

4-9-7-1204, Hongo, Bunkyo-Ku, Tokyo, 1130033, Japan

Date of Birth/Age :

19.09.1951

Date of Appointment :

17.07.2013

DIN No. :

06587779

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	U74899DL1995PTC064419	SMC PNEUMATICS INDIA PRIVATE LIMITED	Director	17-07-2013	20-06-2013	Active	NO

Name :

Koichi Shikakura

Designation :

Director

Address :

2698-1, Chonan, Chonan-Mach I, Chosei-Gun, 2970121, Japan

Date of Birth/Age :

09.09.1951

Date of Appointment :

17.07.2013

DIN No. :

06596566

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	U74899DL1995PTC064419	SMC PNEUMATICS INDIA PRIVATE LIMITED	Director	17-07-2013	20-06-2013	Active	NO

KEY EXECUTIVES

Name :	Mr. P.K. Sood
Designation :	Sales Head
Name :	Kiran Banga
Designation :	Secretary
Address :	B-128, Sector-55, Noida - 201301, Uttar Pradesh, India
Date of Birth/Age :	15.10.7972
Date of Appointment :	19.11.2011
PAN No. :	AIBPB3321L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2014

Names of Shareholders	No. of Shares
SMC Corporation, Japan	21812116
SMC Pneumatics Australia Pty. Limited, Australia	3
Total	21812119

As on 19.09.2014

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Seller and Trader of Air Control Equipment’s.

Products :

Item Code No. (ITC Code)

Product Description

Exports :

--

Imports :

--

Terms :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

Customers :

Reference:	NOT DIVULGED
Name of the Person (with Designation):
Contact Number:
Since How Long Known:
Maximum Limit Dealt:
Experience :
Remarks :

No. of Employees :

Not Divulged

Bankers :

Bank Name:	NOT DIVULGED
Branch:
Name of the Person (with Designation):
Contact Number:
Name of Account Holder:
Account Number:
Account Since (Date/ Year of A/c Opening):
Average Balance Maintained (Optional):
Credit Facilities Enjoyed (CC/OD/Term Loan):
Account Operation:
Remarks:

Auditors :
Name :	Walker Chandiok and Company LLP Chartered Accountants
Address :	L-41, Connaught Circus, New Delhi, India
Income-tax PAN of auditor or auditor's firm :	AAAFW4298E
Holding Company :	SMC Corporation, Japan
Fellow Subsidiary Company :	· SMC Pneumatics Korea Company Limited SMC Pneumatik Gmbh Advance Pressure Technology SMC Corporation of America SMC Pneumatics(Australia) Pty. Limited SMC (China) Co. Limited SMC Pneumatics (Hongkong) Limited SMC-Espana SA SMC Thailand Limited NK Automation Malaysia Sdn. Bhd SMC Pneumaatics (S.E.A) Pte. Limited
Fellow Subsidiary Companies (Where control exists but having no transactions during the year) :	· SMC Corporation (Mexico), S.A. de C.V. SMC Pneumatics (Canada) Limited SMC Argentina SA SMC Neumatica Venezuela S.A. SMC Pneumatics (Vietnam) Sole Member Co., Limited SMC Pneumatics Bolivia S.r.l. SMC Pneumatics do Brasil Ltda PT SMC Pneumatics Indonesia SMC Pneumatics Chile SA SMC Manufacturing (S'pore) Pte. Limited SMC Manufacturing (Australia) Pty. Limited SMC Pneumatics (New Zealand) Limited SMC Pneumatics (Philippines), Inc. SMC Industrial Automation CZ s.r.o. SMC Pneumatics (S.E.A.) Sdn. Bhd. SMC Pneumatics (Taiwan) Co., Limited SMC Industrial Automation Bulgaria Eood SMC Pneumatik LLC Shoketsu Finance B.V. SMC Industrial Automation Polska Sp.z.o.o. SMC Pneumatics Finland Oy SMC Pneumatique SA SMC Hungary Ipari Automatizalasi Kft. SMC Pneumatics Latvia SIA SMC Industrijska Avtomatika d.o.o. SC SMC Romania S.r.l. SMC Pneumatics (Ireland ) Limited SMC Pneumatics Sweden AB SMC Priemyselna Automatizacia Spol s.r.o. SMC Logistics Service Europe NV SMC Pneumatics Norway AS SMC Pneumatics Estonia OU SMC Pneumatik A/S SMC (Beijing) Manufacturing Co. Limited SMC Pneumatik AG Nihon Kizai (Shanghai) Co. Limited UAB SMC Pneumatics Uruguay Pneumatics S.A. SMC Pneumatics (Guangzhou) Limited Shoketsu Engineering Sdn. Bhd. Dae Yeong Metal Co., Limited Seigyo Kizai Co. Limited LLC "SMC-RUS" SMC Industrijska Automatika d.o.o. Nihon Kizai Co. Limited SMC Pnomatik Sanayi Ticaret ve Servis A.S. Toyo Warehouse and Transportation Co. Limited SMC Pneumatics (U.K.) Limited LLP "SMC Kazakhstan" NK Automation Pte. Limited SMC Thailand Limited NK Automation Malaysia Sdn. Bhd. PT SMC Manufacturing Indonesia

CAPITAL STRUCTURE

As on 19.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
22,000,000	Equity Shares	Rs.100/- each	Rs. 2200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21,812,119	Equity Shares	Rs.100/- each	Rs. 2181.212 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2181.212	2181.212	2181.212
(b) Reserves & Surplus	1875.608	1568.583	1387.544
(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)	4056.820	3749.795	3568.756
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	37.470	42.283	47.500
(c) Other long term liabilities	9.014	9.837	8.949
(d) long-term provisions	2.726	2.344	2.384
Total Non-current Liabilities (3)	49.210	54.464	58.833
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	620.331	468.480	1082.802
(c) Other current liabilities	154.079	60.373	63.788
(d) Short-term provisions	9.688	17.741	0.295
Total Current Liabilities (4)	784.098	546.594	1146.885
TOTAL	4890.128	4350.853	4774.474
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2151.661	1371.175	1414.458
(ii) Intangible Assets	1.684	1.731	0.435
(iii) Capital work-in-progress	1.967	3.520	8.796
(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	4.631	188.695	6.745
(e) Other Non-current assets	41.380	35.994	33.377
Total Non-Current Assets	2201.323	1601.115	1463.811
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1542.524	1376.867	1366.631
(c) Trade receivables	644.004	503.817	424.832
(d) Cash and cash equivalents	351.224	697.169	1375.401
(e) Short-term loans and advances	150.201	168.424	137.517
(f) Other current assets	0.852	3.461	6.282
Total Current Assets	2688.805	2749.738	3310.663
TOTAL	4890.128	4350.853	4774.474

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	GROSS REVENUE		3372.550	2812.360	2290.260
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		645.160	433.450	354.150
Less/ Add	DEPRECIATION/ AMORTISATION		169.950	164.200	126.520
	PROFIT/ (LOSS) BEFORE TAX		475.210	269.250	227.630
Less	TAX		168.180	88.210	75.090
	PROFIT/ (LOSS) AFTER TAX		307.030	181.040	152.540
	EARNINGS IN FOREIGN CURRENCY
		Export Sales at FOB value	500.060	406.770	152.490
	TOTAL EARNINGS		500.060	406.770	152.490
	Earnings / (Loss) Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	9.10	6.44	6.66
Return on Total Assets (PBT/Total Assets}	(%)	9.72	6.19	4.78
Return on Investment (ROI) (PBT/Networth)		0.12	0.07	0.06
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.43	5.03	2.89

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	2181.212	2181.212	2181.212
Reserves & Surplus	1387.544	1568.583	1875.608
Net worth	3568.756	3749.795	4056.820
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2290.260	2812.360	3372.550
		22.797	19.919

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2290.260	2812.360	3372.550
Profit	152.540	181.040	307.030
	6.66%	6.44%	9.10%

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	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	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

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

BACKGROUND

The Company is a wholly owned subsidiary of SMC Corporation Japan (the Holding Company) was incorporated in 1995. The Company is engaged in manufacturing, sale and trading of Air control equipments.

PERFORMANCE

Despite the slow-down in Indian Economy, during the financial year ended March 31, 2014 your Company has achieved a Gross Revenue of Rs. 3372.55 millions as compared to Gross Revenue of Rs.2812.36 millions for the year ended March 31, 2013, thereby registering a growth of 20%. Profit before Tax (PBT) recorded an increase of 76% to Rs.475.21 millions from Rs.269.25 millions during the last year. Profit after Tax (PAT) increased by 69% to Rs.307.03 millions in 2013-14 from Rs.181.04 millions in 2012-13.

FUTURE OUTLOOK

Your company continues to achieve good growth on a sustained basis year-on-year. The company conducts its business with an objective to forge long term relationships with its customers by providing them a diverse range of quality products and services to meet their various requirements. Your company has managed to develop an effective working relationship with the customers and suppliers for ensuring the quality of our supplies and inputs.

FIXED ASSETS

Tangible Assets

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Intangible Assets

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.62.21
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	MRI

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	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		46

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.