MIRA INFORM REPORT

Report Date :

09.07.2014

IDENTIFICATION DETAILS

Name :	SUMITOMO CORPORATION INDIA PRIVATE LIMITED
Registered Office :	4^th Floor, DLF Centre, Sansad Marg, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.01.1997
Com. Reg. No.:	55-084471
Capital Investment / Paid-up Capital :	Rs.376.560 Millions
CIN No.: [Company Identification No.]	U51909DL1997PTC084471
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, exporter, importer and dealer of steel engineering fuels, metals, machinery, plant, food, chemicals, textiles, telecommunications, software, power and electronic components.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 5632000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s sound financial risk profile and decent profitability levels of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 BY

Name :	Mr. Manohar
Designation :	Office Executive
Contact No.:	91-22-26561700
Date :	07.07.2014

LOCATIONS

Registered Office :	4^th Floor, DLF Centre, Sansad Marg, New Delhi – 110001, India
Tel. No. :	91-11-23737181
Fax No. :	91-11-23737111
E-Mail :	ndlzz-org@sumitomocorp.co.jp
Website :	http://www.sumitomocorp.co.jp
Mumbai Office :	RNA Corporate Park, 2^nd Floor, Sant Gyaneshwar Marg, Bandra East, Mumbai – 400051, India
Tel. No. :	91-22-26561700
Fax No. :	91-22-26561999
Chennai Office :	1^st Floor, Gee Gee Universal, No. 2, Mc Nichols Road, Chetpet, Chennai – 600031, Tamilnadu, India
Tel. No. :	91-44-42849837
Fax No. :	91-44-42849248

DIRECTORS

As on 19.09.2013

Name :

Mr. Pankaj Bajaj

Designation :

Whole-time Director

Address :

AB-45, Mianwali Nagar, Paschim Vihar, Rohtak Road, New Delhi – 110087, India

Date of Birth/Age :

07.12.1971

Date of Appointment :

06.09.2010

PAN No.:

ADEPB6052E

DIN No. :

00337925

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	L50101PB1983PLC005516	SML ISUZU LIMITED	Director	29/07/2006	29/07/2006	-	Active	NO
2	U27109DL2006PTC152545	India Steel Summit Private Limited	Director	26/08/2006	26/08/2006	25/11/2008	Active	NO
3	U31908HR2007PTC036926	OMRON AUTOMOTIVE COMPONENTS INDIA PRIVATE LIMITED.	Director	08/06/2007	08/06/2007	14/11/2007	Active	NO
4	U51909DL1997PTC084471	SUMITOMO CORPORATION INDIA PRIVATE LIMITED	Whole-time director	06/09/2010	02/08/2010	-	Active	NO

Name :

Naoki Suda

Designation :

Whole-time director

Address :

B-2/15, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

11.10.1957

Date of Appointment :

06.09.2010

PAN No.:

CMVPS1259Q

DIN No. :

02860882

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	U51909DL1997PTC084471	SUMITOMO CORPORATION INDIA PRIVATE LIMITED	Whole-time director	06/09/2010	13/11/2009	22/01/2014	Active	NO

Name :

Toshihiko Okuma

Designation :

Whole-time director

Address :

Flat No.2701, Tower A, Beau Bonde, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

27.12.1956

Date of Appointment :

06.09.2010

PAN No.:

AAVPO6561H

DIN No. :

03172762

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	U51909DL1997PTC084471	SUMITOMO CORPORATION INDIA PRIVATE LIMITED	Whole-time director	06/09/2010	02/08/2010	14/05/2014	Active	NO

Name :

Masahiro Maruyama

Designation :

Whole-time director

Address :

E-6/3, 1^st floor, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

02.03.1976

Date of Appointment :

06.09.2010

PAN No.:

BGRPM4383G

DIN No. :

03229925

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	U51909DL1997PTC084471	SUMITOMO CORPORATION INDIA PRIVATE LIMITED	Whole-time director	06/09/2010	06/09/2010	-	Active	NO
2	U74140DL1976PTC008245	J J IMPEX (DELHI) PRIVATE LIMITED	Alternate director	20/04/2013	22/09/2010	-	Active	NO
3	L50101PB1983PLC005516	SML ISUZU LIMITED	Alternate director	11/02/2014	16/05/2011	-	Active	NO

Name :

Keiichi Takahashi

Designation :

Director

Address :

No. 64, 2^nd Floor, Poes Garden, Chennai – 600086, Tamilnadu, India

Date of Birth/Age :

25.07.1956

Date of Appointment :

05.09.2011

PAN No.:

BVAPK2827H

DIN No. :

03316156

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	U51909DL1997PTC084471	SUMITOMO CORPORATION INDIA PRIVATE LIMITED	Director	05/09/2011	01/11/2010	13/06/2014	Active	NO

Name :

Katsuya Okihiro

Designation :

Managing director

Address :

H. No. 21, First Floor, Rajdoot Marg, Chanakyapuri, New Delhi – 110021, India

Date of Birth/Age :

28.09.1959

Date of Appointment :

19.10.2011

PAN No.:

ABCPO5873G

DIN No. :

05115075

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	U74140DL1976PTC008245	J J IMPEX (DELHI) PRIVATE LIMITED	Nominee director	26/09/2011	26/09/2011	-	Active	NO
2	U51909DL1997PTC084471	SUMITOMO CORPORATION INDIA PRIVATE LIMITED	Managing director	19/10/2011	19/10/2011	-	Active	NO
3	L50101PB1983PLC005516	SML ISUZU LIMITED	Director	18/07/2012	10/11/2011	-	Active	NO
4	U73100HR1996PTC033284	NKC CONVEYOR INDIA PRIVATE LIMITED	Nominee director	10/11/2011	10/11/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Pankaj Bajaj
Designation :	Secretary
Address :	AB-45, Mianwali Nagar, Paschim Vihar, Rohtak Road, New Delhi – 110087, India
Date of Birth/Age :	07.12.1971
Date of Appointment :	06.05.1997
PAN No.:	ADEPB6052E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2013

Names of Shareholders	No. of Shares
Sumitomo Corporation Asia Pte Limited, Singapore	37655996
Summit Global Management II Bv, Netherland	2
Total	37655998

As on 19.09.2013

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, exporter, importer and dealer of steel engineering fuels, metals, machinery, plant, food, chemicals, textiles, telecommunications, software, power and electronic components.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Building No. 10, 8^th Floor, Tower-B, DLF Cyber City, Phase - II, Gurgaon 122002, Haryana, India
PAN No. :	AAIFB0630K
Ultimate holding company :	¨ Sumitomo Corporation, Japan
Holding company :	¨ Sumitomo Corporation Asia Pte Limited., Singapore
Fellow Subsidiaries :	¨ Sumitomo Shoji Chemicals Company Limited ¨ SC Global Tubular Solutions, LLC ¨ Interacid S.A. ¨ Tortoise Company Limited ¨ Asian Steel Company Limited ¨ SC Foods Company Limited ¨ SC Machinery and Services Company Limited ¨ Sumitomo Corporation Kyushu Company Limited ¨ Sumitomo Corporation Thailand Limited ¨ Sumitomo Corporation Taiwan Limited ¨ Sumitomo Shoji Machinex Company Limited. ¨ Sumisho Machinery Trade Corporation Limited ¨ Sumisho Metalex Corporation ¨ Summit Agro International Limited ¨ Sumitomo Corporation Do Brasil S.A. ¨ Sumitomo Corporation of America ¨ Sumitex International Company Limited ¨ Summit Pharma Europe S.P.A. ¨ Summit Pharmaceuticals Europe Limited. Spain ¨ Summit Pharmaceuticals Europe Limited., London ¨ Summit Pharmaceuticals Europe, Limited, Barcelona ¨ Summit Pharmaceuticals Europe, Limited, Milan ¨ Summit Pharmaceuticals International Corporation ¨ Sumitomo Corporation (Shanghai) Limited ¨ SC Cement Company Limited ¨ Summit D and V Limited ¨ Summit CRM Limited ¨ Sumitomo Corporation Guangzhou Limited ¨ Sumitomo Corporation Korea Company Limited ¨ Sumur Chaya Sdn. Bhd. ¨ India Steel Summit Private Limited
Joint Ventures :	¨ J. J. Impex (Delhi) Private Limited ¨ Munjal Kiriu Industries Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
43000000	Equity Shares	Rs.10/- each	Rs.430.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37655998	Equity Shares	Rs.10/- each	Rs.376.560 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	376.560	316.560	316.560
(b) Reserves & Surplus	1031.480	653.202	555.158
(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)	1408.040	969.762	871.718
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	4.791	4.791
(d) long-term provisions	35.603	25.052	16.457
Total Non-current Liabilities (3)	35.603	29.843	21.248
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	430.202	244.794	113.710
(c) Other current liabilities	48.354	26.793	32.982
(d) Short-term provisions	17.921	10.357	19.752
Total Current Liabilities (4)	496.477	281.944	166.444
TOTAL	1940.120	1281.549	1059.410
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	54.666	61.211	52.742
(ii) Intangible Assets	5.068	11.018	17.017
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	121.895	112.968	100.892
(c) Deferred tax assets (net)	29.778	23.333	15.014
(d) Long-term Loan and Advances	243.196	118.648	121.877
(e) Other Non-current assets	0.014	0.013	2.590
Total Non-Current Assets	454.617	327.191	310.132
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	141.569	48.415	31.153
(c) Trade receivables	476.874	339.056	208.412
(d) Cash and cash equivalents	808.640	517.914	465.708
(e) Short-term loans and advances	49.791	33.198	26.766
(f) Other current assets	8.629	15.775	17.239
Total Current Assets	1485.503	954.358	749.278
TOTAL	1940.120	1281.549	1059.410

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	2320.000	1440.000	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	2090.810	1252.716	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		229.190	187.284	127.648
Less/ Add	DEPRECIATION/ AMORTISATION		22.457	32.840	35.051
	PROFIT/ (LOSS) BEFORE TAX		206.733	154.444	92.597
Less	TAX		68.455	56.400	36.957
	PROFIT/ (LOSS) AFTER TAX		138.278	98.044	55.640
	Earnings / (Loss) Per Share (Rs.)		3.67	2.60	1.48

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.96	6.81	NA
Return on Total Assets (PBT/Total Assets}	(%)	11.56	13.49	9.81
Return on Investment (ROI) (PBT/Networth)		0.15	0.16	0.11
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.99	3.38	4.50

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	316.560	316.560	376.560
Reserves & Surplus	555.158	653.202	1031.480
Net worth	871.718	969.762	1408.040
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
	(Rs. In Millions)	(Rs. In Millions)
Total Income	1440.000	2320.000
		61.111

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	1440.000	2320.000
Profit	98.044	138.278
	6.81%	5.96%

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	No
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	Yes
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

FINANCIAL REVIEW

The total revenue of the Company increased by around 61% in the financial year ended 31 March 2013 to Rs. 2320.000 millions as against Rs.1440.000 millions in the previous financial year. This is primarily on account on increase in chemicals and metal products business. Commission income has increased by around 28% in the financial year ended 31 March 2013 to Rs. 660.000 millions as against to Rs. 540.000 millions in the previous year. Other income has decreased by around 10.3% in year ended 31 March 2013 to Rs. 41.700 millions as against Rs. 46.500 millions in the previous financial year. Other income includes interest on deposits which for the financial year ended 31 March 2013 was Rs. 40.200 millions as against Rs. 40.300 millions in the previous financial year. There was exchange loss of Rs. 23.420 millions during the current financial year ended 31 March 2013 as against exchange gain of Rs. 4.340 millions during the previous year. On an overall, the net profit of the Company has increased by around 41% in the year ended 31 March 2013 to Rs 138. 000 millions as compared to Rs. 98.000 millions in the previous year.

There has been a slow growth in the economy during financial year 2012-13 and future outlook continues to remain a bit pessimistic due to slowdown in domestic growth, prevailing inflation and current account deficit situation and continued negative growth in the euro area.

The Company along with Sumitomo group companies is exploring opportunities for investment and proposes to co-invest along with other Sumitomo group companies if a suitable and good opportunity is available in India. In order to meet the funding requirement for such prospective downstream investments, the Board decided to raise funds by offering, on preferential basis, 60 lakh equity shares of Rs. 10/- each at a premium of Rs. 40/- per equity share for a total amount of Rs. 300.000 millions to Sumitomo Corporation Asia Pte Limited (i.e. its existing principal shareholder) and the offer was fully subscribed and shares were issued thereof.

MANAGEMENT’S DISCUSSION AND ANALYSIS

GLOBAL BUSINESS ENVIRONMENT AND ECONOMIC OVERVIEW:

The World Bank, Credit Analysis and Research Limited and Dun and Bradstreet have presented a broadly similar outlook for 2013.

Global economic prospects for 2013 continue to remain downbeat as uncertainty and vulnerabilities of economies towards financial stress, real economy constraints and uneven recovery continue to persist with a global economic recovery proving harder to come by than originally anticipated.

The global economy is transitioning into what is likely to be a smoother and less volatile period. For high-income countries, growth in 2013 is projected to be a modest 1.2%. However, for high-income countries, broadly, conditions have improved. Financial market risk indicators have all improved significantly. However, fiscal consolidation, high unemployment and still weak consumer and business confidence will continue to dampen growth this year. Whilst such challenges faced by high-income countries shall continue to persist, the likelihood that these challenges will provoke a major crisis has declined markedly.

Despite this modest growth in high income countries, real-side activity remains sluggish in Europe, where it is being held back by weak confidence and continued banking sector and fiscal restructuring. The Euro Area is now estimated to contract by 0.6% in 2013. The European Central Bank introduced a thus far unused sovereign bond buying scheme to buy debt from countries that request bailout funds. Also, 25 countries joined a fiscal pact giving Brussels the power to review national budgets, expand the European Financial Stability Facility (effectively a firewall for indebted sovereign governments) and European Stability Mechanism (to help recapitalize private sector banks) and begin discussions on a possible European banking union. While these moves have sustained the Euro zone in the short term, more needs to be done to stop a Greek exit. Meanwhile, national governments introduced austerity measures to reduce burgeoning fiscal deficits and public sector debt levels, a development that has additionally impacted short-term growth prospects.

The recovery is on more solid ground in the United States, where a fairly robust private sector recovery is being held back, but not extinguished by fiscal tightening. The corporate sector is now in its strongest financial health in years, balance sheets have been rebuilt owing to the completion of deleveraging programs, payment performance is improving, and bankruptcies are declining. Meanwhile, in Japan, a dramatic relaxation of macroeconomic policy appears to have sparked an uptick in activity, at least over the short-term.

The story for developing countries is, for the most part, rosier. Developing economies have more or less completely recovered from the 2008 crisis and less volatile external conditions are expected to yield a gradual acceleration of activity in developing regions. Developing country gross domestic product is now projected to be around 5.1% in 2013. Looking at broader region-wide trends, East Asia is expected to grow by 7.3% this year; developing Europe and Central Asia by 2.8%; Latin America by 3.3%; Middle East and North Africa by 2.5%; South Asia by 5.2% and Sub-Saharan Africa by 4.9%. However, developing countries are not a homogenous group, and policy prescriptions may need to be tailored accordingly.

The economic challenges thrown up in the past few years have been more prolonged and challenging than any such previous challenges in the last century. A unique set of challenges and opportunities await economies in future, some of which include:

a) Fiscal challenges being faced in European Union and United States;

b) Deregulation and rebalancing in key sectors of developing economies;

c) The uncertain longer term effects of new monetary policies being employed to meet current economic challenges;

d) Commodity price uncertainty (including oil prices); and

e) Food inflation.

INDIAN BUSINESS ENVIRONMENT AND ECONOMIC OVERVIEW:

The Economic Advisory Council to the Prime Minister of India and the World Bank have presented a broadly similar outlook for 2013 in relation to India.

Growth and, more particularly, industrial growth has slowed. Overall economic growth is expected to rise to 6.4% in 2013-14 and India is likely to remain one of the faster growing nations in the world, although the expected pace takes a step back from the very high growth rates achieved in the late 2000s.

Investment and savings rates have come down but economic growth has declined more steeply than what is warranted by the decline in investment. The main reason for this is that while capital assets have been formed, counterpart output has not flowed into the economy. Capital accumulated in projects is not yielding commensurate output, as the implementation of projects has slowed. Policy and administrative actions such as the recently constituted cabinet committee on investment may help to overcome obstacles in the speedy execution of projects but more needs to be done in the coming months so that new investment can be facilitated. In the current context, achieving the production and capacity creation targets in the key infrastructure sectors such as coal, power, roads, railways and ports, which are largely in the public sector or public private partnership model, will act as a great stimulus to private investment and faster growth.

Weak exports, elevated imports, and a significant depreciation of the rupee in the first half of 2013 have widened the current account deficit to a record high, although recent data points to some narrowing of the trade gap. Current Account Deficit is estimated to be USD 94 billion (5.1% of gross domestic product) in 2012-13 and is projected to be USD 100 billion (4.7% of gross domestic product) in 2013-14. Specific mention needs to be made of the close link between India’s dependence on imports of oil and natural gas and its current account deficit. Hence, steps should be taken to improve the energy economy in all aspects i.e. production, transformation and final use. Facilitating an increase in domestic coal production will make a substantial difference. The conditions for exploration and production of hydrocarbons must be improved to increase domestic supply. While in the short run, actions that are necessary to encourage capital flows need to be taken, over the medium term, India must bring down the current account deficit to moderate levels.

Inflation continues to remain high, but there are definite signs that headline WPI inflation is coming down. The provisional figure for inflation at the end of 2012-13 is 5.96%. In 2013-14, the headline WPI inflation is expected to be around 6.0 %, with primary food inflation around 8%, fuel at about 11% and manufactured goods at around 4%. Non-food manufacturing inflation remains around the comfort zone. Further, owing to such inflationary conditions prevailing in the Indian economy, the Reserve Bank of India has had to strike a tough balance between providing some monetary stimulus and restraining further price growth.

The fiscal deficit of India for 2012-13 is estimated to be 5.2% of gross domestic product. Fiscal performance by the states has largely followed the adjustment path recommended by the 13^th Finance Commission and, although the India’s deficit remains elevated, policy actions to reduce fuel subsidies and the recently presented in FY2014 Union Budget have reaffirmed the Indian government’s commitment to fiscal consolidation. The next decade will be a crucial decade for India. If India grows at 8 to 9% per annum, it is projected to graduate to the level of a middle income country by 2025.

BUSINESS SEGMENT REVIEW:

TRANSPORTATION AND CONSTRUCTION SYSTEMS:

AUTOMOTIVE:

In 2012, the Indian automobiles industry witnessed a moderation in demand after the double-digit growth in sales recorded in the preceding three years. Weak macroeconomic sentiment coupled with subdued consumer confidence pulled down sales, particularly in the latter half of the year. Domestic automobile sales grew by 6.6% in 2012 (Jan-Nov), as compared to growth of 14-31% during 2009-2011. Whilst typically India is seen as an emerging export hub for sports utility vehicles and compact cars to Europe, South Africa and Southeast Asia due to its cost competitive manufacturing practices, in view of the current macro environment, both domestically and globally, vehicle exports are witnessing a downhill drive since mid-2012. As a result, achieving high growth rates and vehicle exports is likely to be a major challenge for the industry in 2013.

AUTOMOTIVE COMPONENTS:

As is the case with automotive sector, the automotive components sector in India is currently facing its most formidable challenge i.e. slowing demand and that too across the board.

Till 2011-12, the automotive components manufacturers were grappling with a rising cost structure arising from volatile currency movements, firm interest rates and inflation in other overheads including employee costs and power costs. However, since raw material cost environment was relatively benign, it allowed automotive components manufacturers to have one less worrisome variable to contend with. While there has been no significant change in character of any of the above forces during 2012-13, the biggest trepidation for automotive components makers currently springs from tepid automobile demand, dreaded to remain weak even in the near term. Decline in revenues (on YoY basis) has significantly hurt both profits as well as margins of automotive components manufacturers.

On the exports front, automotive components supplies to Europe had already been witnessing sluggish growth over the last few years, but steady expansion in demand for light vehicles and commercial vehicles in North America was adequately offsetting the overall exports weakness. However, starting Q2 2012-13, automotive components exports to USA also have declined significantly, particularly related to parts meant for commercial vehicles applications due to sharp contraction in demand. Automotive components suppliers to the domestic replacement market have also been experiencing moderation in growth, but this segment, typically, has been relatively more resilient if not fully immune.

CONSTRUCTION EQUIPMENT:

The Construction equipment sector in India is expected to witness dynamic growth in the near future owing to government investments in infrastructure coupled with growing real estate sector.

Robust economic development coupled with growth in infrastructure stimulates the demand for more construction equipment’s across the country.

Expansion in mining sector is one the major factors influencing the growth of the construction equipment market. Growing presence of original equipment manufacturers in India provides a major opportunity for market growth. Foreign direct investment inflow in construction has also facilitated the market to grow further.

Further initiatives to promote infrastructure construction and manufacturing sector policies will have a favorable impact on the market for construction equipment’s.

In view of the increasing focus of automotive and automotive components manufacturers towards India, the Company is making enhanced efforts to promote and develop this segment further. The Company realizing long term benefits that can be realized from this segment, has been supporting SC group in managing an automotive component manufacturing company named Munjal Kiriu Industries, a joint venture company between Hero Group, Kiriu Corporation Japan, SC, Japan and SC India. In addition, the Company has been strongly supporting investment initiatives of SC Japan in its joint venture with Kubota Japan to promote sales of Kubota tractors and farm equipment’s in India. The Company has also supported SC Japan’s initiatives in relation to its light commercial vehicles manufacturer - SML Isuzu and has managed important issues related thereto. The Company also continues to support J J Impex (Delhi) a joint venture company between Maruti Suzuki India, SC Japan and SC India. Finally, the Company is exploring trading and investment opportunities in this sector and company is hopeful that it would be able to enhance its presence in this sector.

FUTURE OUTLOOK:

The Company is looking forward and seeking opportunities to grow business and volumes. Regional business reorganization and more coordination between subsidiaries of Sumitomo Corporation Asia Pte Ltd is anticipated to increase intra-regional business activity amongst SC subsidiaries. In addition there is an increasing interest of Sumitomo Corporation, Japan to promote business in India and in this regard India has been identified as a focused area. The Company is making effort to increase spectrum of its business operations and has been able to create new opportunities.

The Company believes that it would be able to grow its operations on account of increasing interest of global as well as other Japanese corporations in India. Further, the company has invested certain amounts of money in downstream ventures and is contemplating some more (subject to viability) and exploring opportunities for expanding trading transactions on principal basis.

The company is looking forward to promoting business relationship amongst South Asian region countries and expansion of business relationship between group companies located in this region. The company is also contemplating to undertake a wider perspective of services, which would allow it to be more economic and efficient and also provide for value addition to its services.

The company believes that it would be able to play a major role in supporting Sumitomo Corporation and its business associates in expanding their business horizon within India and in the process would be able to enrich its business portfolio with more value added functions and a stronger bottom line.

FIXED ASSETS

œ Furniture and Fixtures

œ Vehicles

œ Office Equipment

œ Computer Equipments

œ Leasehold Improvements

œ Refrigerators

œ Mobile Phones

œ Air Conditioners

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.59.80
UK Pound	1	Rs.102.42
Euro	1	Rs.81.32

INFORMATION DETAILS

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

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	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.