MIRA INFORM REPORT

Report Date :

23.09.2014

IDENTIFICATION DETAILS

Name :	HONDA TRADING CORPORATION INDIA PRIVATE LIMITED
Registered Office :	F-10, Manish Twin Plaza, Plot No. 3, Sector-4, Dwarka, New Delhi-110075
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.05.2005
Com. Reg. No.:	55-135750
Capital Investment / Paid-up Capital :	Rs. 86.000 millions
CIN No.: [Company Identification No.]	U51909DL2005PTC135750
PAN No.: [Permanent Account No.]	AABCH5556J
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in trading of items such as steel coils, automotive parts and automotive equipments and also engaged in providing business auxiliary services and installation services.
No. of Employees :	737 [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 531300
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by thin profitability levels and low reserves of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

N E W S

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

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

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

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

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

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

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

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

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 PARTED BY

Name :	Mr. Prashupati Singh
Designation :	Assistance Executive
Contact No.:	91-124-4797777
Date :	20.09.2014

LOCATIONS

Registered Office :	F-10, Manish Twin Plaza, Plot No. 3, Sector-4, Dwarka, New Delhi-110075, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	shipra.singla@hondatradingindia.com
Head Office :	Sigma Centre, A-27, Infocity Sector – 34, Gurgaon – 122001, Haryana, India
Branch Office 1:	Survey No.48, Huskur Village, Bidarahalli Hobli, Hoskote Taluk, Bangalore-560049, Karnataka, India
Tel. No.:	91-80-28472171
Fax No.:	91-80-28472172
Branch Office 2 :	SPL-1, Tapukara Industrial Area, Khushkhera, District Alwar-301707, Rajasthan, India
Branch office 3:	Plot No. 197, Sector – 4, IMT Manesar, Gurgaon – 122050, Haryana, India
Tel. No.:	91-124-4797777
Fax No.:	91-124-4063800
Warehouse:	Farakh Nagar, Mubarakpur Village, Gurgaon – 122506, Haryana, India

DIRECTORS

AS ON 30.09.2013

Name :

Kazunari Chikara Tsuruhigashi

Designation :

Managing Director

Address :

B-031, Raheja Atlantis Sector-31, Gurgaon-122001, Haryana, India

Date of Birth/Age :

20.03.1964

Date of Appointment :

04.02.2013

Din No.:

06508374

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	U51909DL2005PTC135750	HONDA TRADING CORPORATION INDIA PRIVATE LIMITED	Managing director	19-09-2013	04-02-2013	Active	NO
2	U05004DL2007PTC169044	RAJASTHAN PRIME STEEL PROCESSING CENTER PRIVATE LIMITED	Managing director	19-09-2013	05-02-2013	Active	NO

Name :

Hideaki Murai

Designation :

Director

Address :

Emporium Suites, Room No.2808, 622, Sukhumvit Road, Klongtoey, Bangakok-10110, Thailand

Date of Birth/Age :

05.05.1960

Date of Appointment :

24.06.2011

Din No.:

03589994

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	U51909DL2005PTC135750	HONDA TRADING CORPORATION INDIA PRIVATE LIMITED	Director	08-09-2011	24-06-2011	Active	NO

Name :

Hidenori Kaneko

Designation :

Additional director

Address :

No. 796, 1st Cross, 12th Main HAL 2nd Stage, Indiranagar, Bangalore-560008, Karnataka, India

Date of Birth/Age :

23.12.1964

Date of Appointment :

01.10.2013

Din No.:

06703833

Name :

Shuhei Yoshioka

Designation :

Director

Address :

K031, DLF Park Place Tower, S DLF, Phase V, Sector 54, Gurgaon-122001, Haryana, India

Date of Birth/Age :

25.04.1978

Date of Appointment :

01.05.2013

KEY EXECUTIVES

Name :	Shipra Singla
Designation :	Secretary
Address :	House No. 89, Adarsh Nagar, Mandi Dabwali, Sirsa-125104, Haryana, India
Date of Birth/Age :	19.09.1983
Date of Appointment :	01.11.2012
Pan No.:	CQFPS1724L
Name :	Mr. Prashupati Singh
Designation :	Assistance Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Honda Trading Corporation, Japan	7740000	90.00
Honda Trading Asia Company Limited, Thailand	860000	10.00
TOTAL	8600000	100.00

AS ON 30.09.2013

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]	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in trading of items such as steel coils, automotive parts and automotive equipments and also engaged in providing business auxiliary services and installation services.

Products :

ITEM CODE NO.	PRODUCT DESCRIPTION
8708	Automobile Parts
8766	Automobile Equipments
7209	Steel

Exports :

Products :

Finished Goods

Countries :

· Japan

· Thailand

· America

· Indonesia

· Philippines

Imports :

Products :

Raw Materials

Countries :

· Japan

· Thailand

· America

· Indonesia

· Philippines

Terms :

Selling :

Credit

Purchasing :

Credit

GENERAL INFORMATION

Suppliers :	· Honda Motor Cycles and Scooters India Private Limited · Honda Car India Limited, Rajasthan
Customers :	Wholesalers · Honda Trading Corporation, Japan · Shanghai Honda Trading, China
No. of Employees :	737 [Approximately]
Bankers :	· Bank of Tokyo · ICICI Bank Limited, qutub plaza Branch, Gurgaon, Haryana, India · Mizuho Corporate Bank Limited, Cinnaugh Place Branch Delhi · Standard Chartered Bank
Facilities :	--

Banking Relations :	--
Auditors :
Name :	BSR Associates Chartered Accountants
Address :	Building No. 10, 8^th Floor, Power-B, DLF City, Phase – III, Gurgaon - 122001, Haryana, India
Holding company :	Honda Trading Corporation, Japan
Ultimate Holding Company :	Honda Motors Company Limited, Japan
Fellow Subsidiary :	Honda Express Logistics India Private Limited, India CIN No.: U34300DL2005ptc136703 Honda Motorcycle And Scooter India Private Limited, India CIN No.: U35911dl1999ptc101242 Honda R&D (India) Private Limited, India CIN No.: U51202HR2003ptc035129 Honda Siel Cars India Limited, India CIN No.: U74999DL1995plc074375 Honda Siel Power Products Limited, India CIN No.: U27109dl1901plc022060 · Honda Automovies Do Brasil Ltda. (Hab)., Brazil · Honda Trading ( China ) Company Limited, China · Honda Trading America, United States · Honda Trading (South China) Company Limited, China · Honda Trading America Corp., United States · Honda Trading Asia Company Limited, Thailand · Honda Trading Brasil, Brazil · Honda Trading China Company Limited, China · Honda Trading Europe Limited, United Kingdom · Honda Trading Malaysia Sdn. Bhd, Malaysia · Honda Trading Indonesia, Indonesia · Honda Trading Philippines, Philippines · Honda Trading Kumato Branch, Japan · Honda Trading Philippines Ecozone Corp., Philippines · Honda Trading Malaysia Sdn. Bhd, Malaysia · Honda Trading South ( China ) Company Limited, China · Honda Trading Vietnam Company Limited, Viet Nam · Pt. Honda Treading Indonesia, Indonesia · Shanghai Honda Trading Company Limited, Japan · Wuhan Honda Trading Company Limited, Japan

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
8600000	Equity Shares	Rs.10/- each	Rs.86.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8600000	Equity Shares	Rs.10/- each	Rs.86.000 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	86.000	86.000	86.000
(b) Reserves & Surplus	46.848	15.649	(6.062)
(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)	132.848	101.649	79.938
(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	0.000	0.000
(d) long-term provisions	1.702	1.670	1.472
Total Non-current Liabilities (3)	1.702	1.670	1.472
(4) Current Liabilities
(a) Short term borrowings	461.890	224.517	181.754
(b) Trade payables	1006.028	504.144	360.414
(c) Other current liabilities	27.304	285.016	19.175
(d) Short-term provisions	0.207	5.623	0.088
Total Current Liabilities (4)	1495.429	1019.300	561.431
TOTAL	1629.979	1122.619	642.841
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	28.082	19.028	12.954
(ii) Intangible Assets	0.376	1.820	0.833
(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	19.800	19.800	19.800
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.077	3.261	3.995
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	58.335	43.909	37.582
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	626.283	314.667	168.699
(c) Trade receivables	722.359	434.645	319.087
(d) Cash and cash equivalents	94.317	13.288	66.691
(e) Short-term loans and advances	128.685	316.110	50.782
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1571.644	1078.710	605.259
TOTAL	1629.979	1122.619	642.841

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	5556.380	2068.010	1901.669
Less	EXPENSES
		TOTAL	5508.892	2043.799	1869.997
	PROFIT / (LOSS) BEFORE TAX		47.488	24.211	31.672
Less	TAX		16.289	2.500	6.496
	PROFIT / (LOSS) AFTER TAX		31.199	21.711	25.176
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	(31.238)
	BALANCE CARRIED TO THE B/S		31.199	21.711	(6.062)
	EARNINGS IN FOREIGN CURRENCY		NA	352.568	101.753
	Earnings / (Loss) Per Share (Rs.)		3.63	2.52	2.93

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.56	1.05	4.04
Return on Total Assets (PBT/Total Assets}	(%)	2.95	2.20	5.08
Return on Investment (ROI) (PBT/Networth)		0.35	0.23	0.40
Debt Equity Ratio (Total Debt/Networth)		3.47	2.21	2.27
Current Ratio (Current Asset/Current Liability)		1.05	1.05	1.07

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	86.000	86.000	86.000
Reserves & Surplus	(6.062)	15.649	46.848
Net worth	79.938	101.649	132.848
long-term borrowings	0.000	0.000	0.000
Short term borrowings	181.754	224.517	461.890
Total borrowings	181.754	224.517	461.890
Debt/Equity ratio	2.274	2.209	3.477

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)
Total Income	1901.669	2068.010	5556.380
		8.747	168.682

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1901.669	2068.010	5556.380
Profit	25.176	21.711	31.199
	1.32%	1.05%	0.56%

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	Yes
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

NOTE:

The registered office of the company has been shifted from A-390, Defence Colony New Delhi-110024, India to the present address w.e.f. 01.11.2006

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

BACKGROUND:

Honda Trading Corporation India Private Limited was incorporated under the Companies Act 1956, on May 3, 2005. The Company is primarily engaged in trading of items such as steel coils, automotive parts and automotive equipments. The company is also engaged in providing business auxiliary services and installation services to its customers.

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
Term loans from banks	111.890	26.517
Loans repayable on demand from banks	350.000	198.000
TOTAL	461.890	224.517

FIXED ASSETS:

· Land

· Buildings

· Furniture and fixtures

· Vehicles

· Office equipment

· 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.60.79
UK Pound	1	Rs.99.30
Euro	1	Rs.78.17

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	KAR
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	3
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--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.