MIRA INFORM REPORT

Report Date :

27.11.2014

IDENTIFICATION DETAILS

Name :	TAEGUTEC INDIA PRIVATE LIMITED (w.e.f.10.03.2003)
Formerly Known As :	TAEGUTEC INDIA LIMITED
Registered Office :	#119 and 120, 4^th Phase, Bommasandra Industrial Area, Attibele Hobli, Bangalore – 562099, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.10.1999
Com. Reg. No.:	08-025888
Capital Investment / Paid-up Capital :	Rs.46.987 Millions
CIN No.: [Company Identification No.]	U27109KA1999PTC025888
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of Tungsten Carbide Inserts, Tool Holders, End Mills and Milling Cutters.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 5630000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. The rating reflects company’s healthy operational risk profile marked by strong liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

Rating Agency Name	ICRA
Rating	Long term fund based facilities = AA
Rating Explanation	High degree of safety and very low credit risk.
Date	March, 2014

Rating Agency Name	ICRA
Rating	Short term fund based facilities = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March, 2014

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

Contact No.: 91-80-27839111

LOCATIONS

Registered Office / Factory :	#119 and 120, 4^th Phase, Bommasandra Industrial Area, Attibele Hobli, Bangalore – 562099, Karnataka, India
Tel. No.:	91-80-27839111 / 27831870 / 72
Fax No.:	91-80-27839123 / 27831869
E-Mail :	vkumar@taegutec-india.com sales@taegutec-india.com neha@taegutec-india.com
Website :	http://www.taegutec-india.com
Branches :	No.1385, 4^th ‘A’ Cross, 10^th Main, RPC Layout, Hampi Nagar, Bangalore – 560014, Karnataka, India
Mobile No. :	91-8088239009 (Mr. Prashanth K.M.)

DIRECTORS

AS ON 30.09.2013

Name :

Hyun Jun Han

Designation :

Nominee director

Address :

Shincheon Hyperion Apartment 102-2101, 148-4, Shincheon – 3 Dong, Dong-gu, Daegu, 701825- Republic of Korea

Date of Birth/Age :

15.04.1960

Date of Appointment :

20.04.2011

DIN :

03535395

Name :

Mrs. Alpana Bhartia

Designation :

Director

Address :

#209, Ramanashree Chambers, #37, Lady Curzon Road, Bangalore – 560001, Karnataka, India

Date of Birth/Age :

07.09.1966

Date of Appointment :

27.10.1999

DIN :

00563608

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	U85110KA1990PTC011340	SHIVANGINI PROPERTIES Private Limited	Whole-time director	01/04/2011	25/03/1991	-	Active	NO
2	U67120KA1979PTC035394	PIALDE INVESTMENTS PRIVATE LIMITED	Director	20/06/1991	20/06/1991	-	Amalgamated	NO
3	U65999WB1996PTC076702	EIC HOLDINGS Private Limited	Director	17/01/1996	17/01/1996	05/01/2012	Active	NO
4	U85110KA1996PLC019607	SHIVANGINI INVESTMENTS LIMITED	Director	17/01/1996	17/01/1996	-	Dormant	NO
5	U51109WB1941PLC010409	EAST INDIA COMMERCIAL CO LTD	Director	01/04/1997	01/04/1997	-	Active	NO
6	U27109KA1999PTC025888	TAEGUTEC INDIA PRIVATE LIMITED	Director	29/09/2012	27/10/1999	-	Active	NO
7	U70101KA2002PTC030796	GOLFLINK ESTATES AND FINANCE PRIVATE LIMITED	Director	19/07/2002	19/07/2002	-	Amalgamated	NO
8	U02710KA2004PTC034823	DAKSHIN FOUNDRY PRIVATE LIMITED	Director	07/10/2004	07/10/2004	-	Active	NO
9	U85110KA1993PLC014444	SOUTHERN HIGHTECH CAPITAL LIMITED	Director	18/12/2004	18/12/2004	-	Active	NO
10	U05190KA2005PTC035395	MELBROW COMMERCIAL COMPANY Private Limited	Director	30/03/2013	31/08/2005	-	Active	NO
11	U51909KA2012PTC065298	DAKSHIN TRADES AND COMMERCE PRIVATE LIMITED	Director	11/08/2012	11/08/2012	-	Active	NO

Name :

Mr. Srinivasan Rangarjan

Designation :

Director

Address :

#126, Nandidurg Road, Bangalore – 560046, Karnataka, India

Date of Birth/Age :

10.09.1941

Date of Appointment :

08.03.2000

DIN :

00043658

Name :

Mr. Moshe Sharon

Designation :

Director

Address :

#304, Yonggye-Ri, Gachang-Myeon, Dalsung-Gun, TAEGU - 711-860

Date of Birth/Age :

04.04.1948

Date of Appointment :

01.04.2002

DIN :

00494804

Name :

Mr. Krishnan Lakshmikanthan

Designation :

Managing Director

Address :

M 48, Diamond District, Airport Road, Bangalore – 560017, Karnataka, India

Date of Birth/Age :

16.03.1959

Date of Appointment :

01.01.2005

DIN :

00316429

KEY EXECUTIVES

Name :	Mrs. Neha Jain
Designation :	Company Secretary
Address :	# 691, 17^th ‘E’ Cross. CMH Road, Indiranagar, Bangalore, Karnataka, India
Date of Birth/Age :	31.07.1979
Date of Appointment :	16.08.2005
PAN No.:	AFNPJ6303B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders		No. of Shares
Equity Shares :
IMC International Metal Working Company B.V, Natherland		3054100
Shivangini Properties Limited, Bangalore		1644570
	Total	4698670

AS ON 30.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	65.00
Bodies corporate	35.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading of Tungsten Carbide Inserts, Tool Holders, End Mills and Milling Cutters.

Products :

Item Code No.	Product Description
82090010	Tool Holder

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :	Not Divulged
Customers :	Not Divulged
No. of Employees :	Information declined by the management.
Bankers :	State Bank of India, Industrial Finance Branch, Residency Road, Bangalore – 560025, Karnataka, India
Facilities :	Not Available

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountant
Address :	Maruti Infotech Centre, 11/1 & 12/1 East wing, II Floor, Koramangla Inner Ring Road, Bangalore – 560070, Karnataka, India
Tel. No. :	91-80-39806000
Fax No. :	91-80-39806999
PAN No. :	AADFB6889R
Ultimate Holding Company / Holding Company :	IMC International Metalworking Company BV, Netherlands
Fellow Subsidiary Company :	ISCAR Limited, Israel TaeguTec Limited, Korea (TT Korea), Ingersoll Cutting Tools, Germany IT.TE.DI.S.R.L, Italy Tungaloy India Private Limited U51909MH2009FTC215964 IMC Dalian China, Unitac Incorporated Tungaloy Corporation

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs.10/-each	Rs.60.000 Millions
8,000,000	Preference Shares	Rs.10/-each	Rs.80.000 Millions
	Total		Rs. 140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,698,670	Equity Shares	Rs.10/-each	Rs.46.987 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	46.987	46.987	46.987
(b) Reserves & Surplus	1920.984	1751.103	1463.649
(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)	1967.971	1798.090	1510.636
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	69.010	59.137	45.573
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6.327	5.044	14.078
Total Non-current Liabilities (3)	75.337	64.181	59.651
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	251.712	309.860	219.628
(c) Other current liabilities	99.649	95.515	49.807
(d) Short-term provisions	24.201	21.667	15.619
Total Current Liabilities (4)	375.562	427.042	285.054
TOTAL	2418.870	2289.313	1855.341
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	796.115	704.961	588.243
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	19.207	81.679	114.793
(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	10.885	24.164	1.821
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	826.207	810.804	704.857
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	489.630	525.436	356.620
(c) Trade receivables	347.530	453.170	418.992
(d) Cash and cash equivalents	706.153	441.263	340.323
(e) Short-term loans and advances	39.467	54.892	34.005
(f) Other current assets	9.883	3.748	0.544
Total Current Assets	1592.663	1478.509	1150.484
TOTAL	2418.870	2289.313	1855.341

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	2208.529	2347.826	1961.289
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX	553.887	732.514	754.091
Less	TAX	180.617	235.705	257.932
	PROFIT/ (LOSS) AFTER TAX	373.270	496.809	496.159
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	3.985	8.384	2.667
	TOTAL EARNINGS	3.985	8.384	2.667
	Earnings / (Loss) Per Share (Rs.)	79.44	105.73	105.59

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	16.90	21.16	25.30
Return on Total Assets (PBT/Total Assets}	(%)	23.08	33.18	43.32
Return on Investment (ROI) (PBT/Networth)		0.28	0.41	0.50
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		4.24	3.46	4.04

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	46.987	46.987	46.987
Reserves & Surplus	1463.649	1751.103	1920.984
Net worth	1510.636	1798.090	1967.971
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	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1961.289	2347.826	2208.529
		19.708	(5.933)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1961.289	2347.826	2208.529
Profit	496.159	496.809	373.270
	25.30%	21.16%	16.90%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	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	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	No
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	Yes

OPERATING PERFORMANCE

During the period, the Company made a turnover of Rs.2208.528 Millions as against previous year’s Rs.2347.826 Millions and has earned a Net Profit before Tax of Rs.553.887 Millions as against Rs.732.514 Millions in the previous year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90197839	30/01/2003 *	110,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RESIDENCY ROAD, BANGAL  ORE, Karnataka - 560025, INDIA	-

* Date of charge modification

FIXED ASSETS

• Leasehold Land
• Building
• Plant and Machinery
• Computers
• Office Equipment
• Furniture and Fixtures
• Vehicles
  

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 records 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.61.87
UK Pound	1	Rs.97.23
Euro	1	Rs.77.21

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		66

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.