MIRA INFORM REPORT

Report Date :

03.02.2014

IDENTIFICATION DETAILS

Name :	THREE BOND INDIA PRIVATE LIMITED
Registered Office :	J-288, Saket, New Delhi - 110017
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	21.01.1997
Com. Reg. No.:	55-084565
Capital Investment / Paid-up Capital :	Rs. 49.234 Millions
CIN No.: [Company Identification No.]	U74900DL1997PTC084565
TAN No.: [Tax Deduction & Collection Account No.]	DELT04515A
PAN No.: [Permanent Account No.]	AAACT5989N
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Trader of Sealant and Adhesives which are manufactured by Parent Company in Japan.
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 1608000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings 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 – 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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non-compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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. Vineet Negi
Designation :	Assistant Finance Manager
Contact No.:	91-9899250668
Date :	31.01.2014

LOCATIONS

Registered Office :	J-288, Saket, New Delhi - 110017, India
Tel. No.:	Not Available
Mobile No.:	91-9899250668 (Mr. Vineet Negi)
Fax No.:	Not Available
E-Mail :	finance@threebond.co.in atul.sales@threebond.co.in tribid@threebond.co.in
Website :	http://www.threebondindia.com
Head Office :	Plot No. 43, Sector-3, IMT Manesar - 122050, Haryana, India
Tel. No.:	91-124-4499025
Factory :	531-532, Udyog Vihar Phase V, Gurgaon-122016, Haryana, India
Tel. No.:	91-124-2347373/ 2347014-21
E-Mail :	sales@threebond.co.in
Branch Office :	No. 242, Vanagaram Road, Athipet, Ambattur, Chennai - 600058, Tamilnadu, India
Tel. No.:	91-44-65325337
Fax No.:	91-44-26257439
E-Mail :	adminsouthindia@threebond.co.in

DIRECTORS

AS ON 19.04.2013

Name :

Mr. Shuji Mochizuki

Designation :

Managing director

Address :

J- 803, Central Park, Sector 42, Gurgaon -122001, Haryana, India

Date of Birth/Age :

10.11.1956

Qualification :

Graduate in Technical

Experience :

35 Years

Date of Appointment :

01.01.2010

DIN No.:

02919332

Name :

Mr. Shinji Sorimachi

Designation :

Director

Address :

S 23B, Windsor Court, DLF Phase-IV, Gurgaon-122002, Haryana, India

Date of Birth/Age :

23.07.1956

Date of Appointment :

01.01.2010

DIN No.:

01225038

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	U74900DL1997PTC084565	THREE BOND INDIA PRIVATE LIMITED	Director	01/01/2010	29/11/2006	Active	NO

KEY EXECUTIVES

Name :	Mr. Vineet Negi
Designation :	Assistant Finance Manager
Name :	Watari Nakanishi
Designation :	General Manager Marketing
Date of Birth/Age :	42 Years
Qualification :	Graduate in Sales
Experience :	18 Years
Name :	Hideaki Tamura
Designation :	Manager Technical
Date of Birth/Age :	59 Years
Qualification :	Graduate in Technical
Experience :	39 Years
Name :	Koichi Muranaka
Designation :	Manager Technical
Date of Birth/Age :	54 Years
Qualification :	Graduate in Technical
Experience :	39 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 19.04.2013

Names of Shareholders	No. of Shares
Three Bond Singapore Pte Limited, Singapore	4923447
Shinji Sorimachi	1
Total	4923448

AS ON 19.04.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Importer and Trader of Sealant and Adhesives which are manufactured by Parent Company in Japan.

Products/ Services :

ITC Code No.	Product Descriptions
321490	Sealant
350691	Adhesive
481190	Sheet Gasket Roll

Exports :

Products :

Sealant and Adhesives

Countries :

· Japan

Trade Reference :

· Three Bond Company Limited, Japan

Terms :

Selling :

Credit (60 Days)

Purchasing :

T.T.

PRODUCTION STATUS (AS ON 31.12.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sealant	Kgs	NA	75000	67236
Adhesives	Kgs	NA	12000	6913

GENERAL INFORMATION

Suppliers :	Three Bond Company Limited, Japan
Customers :	OEM’s · Maruti Udyog Limited Honda Cars India Limited
No. of Employees :	110 (Approximately)
Bankers :	· Mizuho Corporate Bank Limited New Delhi, India · ICICI Bank Limited Manesar, Haryana, India

Banking Relations :	--
Auditors :
Name :	Rajendra K. Goel and Company Chartered Accountants
Address :	J-288, Ground Floor, Saket, New Delhi – 110017, India
Tel. No.:	91-11-29551642/ 29555354
Fax No.:	91-11-29555036
E-Mail :	rajendrakgoelco@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAGPB2075G
Holding Company :	Three Bond Singapore Pte Limited, Singapore
Ultimate Holding Company :	Three Bond Company Limited, Japan
Fellow Subsidiaries :	· Three Bond Manufacturing (Thailand) Company Limited Three Bond Europe S.A.S

CAPITAL STRUCTURE

AS ON 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,923,448	Equity Shares	Rs. 10/- each	Rs. 49.234 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

NOTE: FINANCIAL DETAILS FILE ATTACHED

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	Yes
18]	Major customers	Yes
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	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

UNSECURED LOANS

UNSECURED LOANS	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Unsecured Loan USD 1200000 (@ 2.25% from related party) to be repaid in 16 quarterly instalments of USD 75000 each from August 2013	57.519	0.000
Total	57.519	0.000

PERFORMANCE OF THE COMPANY

The Company's overall turnover of Rs. 458.076 Millions recorded a growth of 4% over the previous year turnover of Rs. 441.152 Millions. The Company also achieved a Net Profit after Tax of Rs. 3.390 Millions for the year ended 31.12.2012 as against Rs. 29.073 Millions during the previous year. The main reasons for decrease in profits of the company are economic slowdown. slump in automobile sector, exchange loss; increase the product cost and depreciation of new establishment in Manesar. The company is having focused approach on cost reduction in all aspects. In the current year, the company continues its focus and concerns about the expansion and establishing its own state of art manufacturing facility in India. The company has spent mainly on infrastructure, personnel recruitment as well as personnel development and brand promotion as well as brand awareness in India.

In order to establish the manufacturing plant, the Company purchased the industrial land in Manesar (Gurgaon) in the year 2009 and in the year 2010 the construction of facility commenced has started. The company’s new factory at Manesar commenced its commercial production on 01.08.2012. Place on record its sincere appreciation to Three Bond Singapore Pte. Limited, parent company for lending financial support for expansion plans of the company.

TRADE REFERENCES:

· Three Bond Company Limited, Japan

Maruti Udyog Limited

Honda Cars India Limited

FIXED ASSETS:

· Factory Building

Office Building

Plant and Machinery

Furniture and Fixture

Office Equipments

Vehicles

Computers

Electric Installments

Temporary Structure

ETP Plant

Land

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. 62.48
UK Pound	1	Rs. 102.95
Euro	1	Rs. 84.60

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.