MIRA INFORM REPORT

Report No. :	328083
Report Date :	22.06.2015

IDENTIFICATION DETAILS

Name :	KATSUSHIRO MATEX INDIA PRIVATE LIMITED
Registered Office :	Plot No. A 38 and 39, Sipcot Industrial Growth Center, Oragadam, Sriperumbudur, Kanchipuram – 602105, Tamilnadu
Tel. No.:	91-44-47114999/ 47114965
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	14.12.2007
Com. Reg. No.:	18-065743
Capital Investment / Paid-up Capital :	Rs. 550.000 Million
CIN No.: [Company Identification No.]	U33100TN2007FTC065743
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEK09385F
PAN No.: [Permanent Account No.]	AADCK3983A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Fabrication of Heavy Machinery Equipments like Steel Plates, General Parts etc.
No. of Employees :	180 (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 640000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a fully owned subsidiary of Katshushiro Matex Company Limited, Japan. Though the company was established in the year 2007, it has commenced commercial production during the year 2011. It is having moderate track record. Company has recorded some accumulated losses from its operations since last 3 financial years. (i.e. FY14, FY13, FY12) However, rating takes into consideration strong financial and managerial support from its holding company and zero-debt balance sheet of the subject company. 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Jambulingam J.P.
Designation :	Finance Manager
Contact No.:	91-44-47114952
Date :	22.06.2015

LOCATIONS

Registered Office/ Factory :	Plot No. A 38 and 39, Sipcot Industrial Growth Center, Oragadam, Sriperumbudur, Kanchipuram – 602105, Tamilnadu, India
Tel. No.:	91-44-47114999/ 47114965/ 47114952
Fax No.:	91-44-47114998
E-Mail :	mamoru_katsushiro@katsushiro.co.jp tsukasa_hasegawa@katsushiro.co.jp junpei_yamashita@katsushiro.co.jp jambulingam.j.b.@katsushiro.co.in
Website :	http://www.katsushiro.co.jp
Location :	Owned
Locality :	Industrial

DIRECTORS

AS ON 29.09.2014

Name :	Inui Shinichi
Designation :	Whole-time director
Address :	Kyouto-Shi Sakyou Ku Iwakura Nagathani Chou 3753 Japan
Date of Birth/Age :	24.11.1955
Experience :	32 Years
Date of Appointment :	14.09.2012
DIN No.:	06379457
Name :	Satoshi Katsushiro
Designation :	Nominee director
Address :	6-19-28, Hojo, Daito City, Osaka, Perfecture, Japan – 5740011
Date of Birth/Age :	26.05.1961
Date of Appointment :	14.12.2007
DIN No.:	01767351
Name :	Mamoru Katsushiro
Designation :	Nominee director
Address :	4-12-4, Okayama Shijyonawate, Osaka, Japan - 5750002
Date of Birth/Age :	16.08.1957
Date of Appointment :	14.12.2007
DIN No.:	01767174

KEY EXECUTIVES

Name :	Kurohara Noritoshi
Designation :	Production Head
Name :	Hiroyuki Uchida
Designation :	Production Control Head
Name :	Yamamoto Tomo
Designation :	Production Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Katsushiro Matex Co. Limited, Japan	54899999	99.82
K – Y Kogyo Co. Limited, Japan	100001	0.18
Total	55000000	100.00

AS ON 29.09.2014

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
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Fabrication of Heavy Machinery Equipments like Steel Plates, General Parts etc.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Finished Goods
Countries :	· Japan · Indonesia
Imports :
Products :	Raw Material
Countries :	· Japan · Indonesia
Terms :
Selling :	Cash, Cheque and Credit
Purchasing :	Cash, Cheque and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

End Users and OEMs

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

180 (Approximately)

Bankers :

Bank Name:	The Bank of Tokyo-Mitsubishi UFJ, Limited
Branch:	Chennai Branch, Tamilnadu, India
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Standard Chartered Bank, Chennai, Tamilnadu, India

· Indian Overseas Bank, Oragadam, Tamilnadu, India

· State Bank of India, Oragadam, Tamilnadu, India

· HDFC Bank Limited, Oragadam, Tamilnadu, India

Facilities :

--

Banking Relations :	--
Auditors :
Name :	R S M and Associates Chartered Accountants
Address :	No.1, Bharathi Street, West Mambalam, Chennai – 600033, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAIFR2466D
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
55,000,000	Equity Shares	Rs. 10/- each	Rs. 550.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
55,000,000	Equity Shares	Rs. 10/- each	Rs. 550.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	550.000	450.000	400.000
(b) Reserves & Surplus	(324.985)	(215.160)	(104.338)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	50.000
Total Shareholders’ Funds (1) + (2)	225.015	234.840	345.662
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	436.714
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	372.336	359.547	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	372.336	359.547	436.714
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	50.000
(b) Trade payables	210.502	162.002	11.744
(c) Other current liabilities	2.016	1.042	0.517
(d) Short-term provisions	12.587	6.135	4.487
Total Current Liabilities (4)	225.105	169.179	66.748
TOTAL	822.456	763.566	849.124
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	496.382	554.096	593.913
(ii) Intangible Assets	0.000	0.000	0.000
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	2.586	1.731	0.652
Total Non-Current Assets	498.968	555.827	594.565
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	128.256	123.675	139.510
(c) Trade receivables	40.192	0.000	0.000
(d) Cash and cash equivalents	116.983	41.942	51.326
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	38.057	42.122	63.723
Total Current Assets	323.488	207.739	254.559
TOTAL	822.456	763.566	849.124

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	204.761	216.448	67.874
		Other Income	5.418	0.423	0.263
		TOTAL	210.179	216.871	68.137
Less	EXPENSES
		TOTAL	259.609	259.427	96.525
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(49.430)	(42.556)	(28.388)
Less/ Add	DEPRECIATION/ AMORTISATION		60.395	68.266	75.950
	PROFIT/ (LOSS) BEFORE TAX		(109.825)	(110.822)	(104.338)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(109.825)	(110.822)	(104.338)
	EARNINGS IN FOREIGN CURRENCY
		Supply of Equipment		2.490	39.823
		Advance against Order		15.110	0.000
	TOTAL EARNINGS		NA	17.600	39.823
	Earnings/ (Loss) Per Share (Rs.)		(2.00)	(2.46)	(2.61)

Expected Sales (2014-2015): Rs. 319.200 Million

The above information has been parted by Mr. Jambulingam J.P. (Finance Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	0.000	0.000
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(53.64)	(51.20)	(153.72)
Return on Total Assets (PBT/Total Assets}	(%)	(13.35)	(14.51)	(12.29)
Return on Investment (ROI) (PBT/Networth)		(0.49)	(0.47)	(0.30)
Debt Equity Ratio (Total Liability/Networth)		0.00	0.00	1.41
Current Ratio (Current Asset/Current Liability)		1.44	1.23	3.81

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	400.000	450.000	550.000
Reserves & Surplus	(104.338)	(215.160)	(324.985)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	50.000
Net worth	295.662	234.840	275.015
Long-term borrowings	436.714	0.000	0.000
Short term borrowings	50.000	0.000	0.000
CURRENT MATURITIES OF LONG-TERM DEBTS	0.000	0.000	0.000
Total borrowings	486.714	0.000	0.000
Debt/Equity ratio	1.646	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	67.874	216.448	204.761
		218.897	(5.399)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	67.874	216.448	204.761
Profit/ (Loss)	(104.338)	(110.822)	(109.825)
	(153.72%)	(51.20%)	(53.64%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CHANGE OF ADDRESS:

The Registered Office of the company has been shifted from C/o. Velu Muthu Associates, 1-B, Prabha Apartments, 17, Bishop Wallers Avenue East, Mylapore, Chennai – 600004, Tamilnadu, India to the present address w.e.f.30.07.2011.

OPERATIONS AND FINANCIAL RESULTS

The Company incorporated on December 14, 2007 to set up production facility to manufacture fabricated steel plates, general parts and components for assembly of heavy machinery like excavators, earth movers etc. has commenced commercial production during the year 2011 after successfully raising factory building and erecting the machinery, both imported and indigenous.

OUTLOOK

The company is optimistic in spite of operating losses in the first and second full year of operations that the third full year of operations (2014-15) will be a stabilization year and expected to result in profitable operations. The company expects to build up sufficient order book for manufacture and for job works as the operations are closely monitored by the parent company and prospects of diverting international orders to the company is expected in case there is any shortfall in procuring orders.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

· Other equipments

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. 63.82
UK Pound	1	Rs. 101.26
Euro	1	Rs. 72.36

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KIN
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--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.