MIRA INFORM REPORT

Report No. :	321324
Report Date :	13.05.2015

IDENTIFICATION DETAILS

Name :	KINTETSU WORLD EXPRESS (INDIA) PRIVATE LIMITED

Formerly Known As :	KWE KINTETSU EXPRESS (INDIA) PRIVATE LIMITED

Registered Office :	897/D, P.R. Complex, 80 Feet Road, 6th Block, Koramangala, Bangalore – 560095, Karnataka
Tel. No.:	91-80-39415050

Country :	India

Financials (as on) :	31.12.2013

Date of Incorporation :	07.04.1997

Com. Reg. No.:	022093

Capital Investment / Paid-up Capital :	Rs. 20.600 Million

CIN No.: [Company Identification No.]	U63023KA1997PTC022093

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AAACK8804H

Legal Form :	Private Limited Liability Company

Line of Business :	The Company is primarily engaged in the business of freight forwarding and providing facilities for the storage, warehousing, carriage and distribution of merchandise and logistics management services.

No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1880000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established company having fine track. The management has failed to file its financial record with government department for the year 2014. However, the rating reflects company’s healthy financial risk profile marked by adequate liquidity position and sound profitability margins of the company. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment. 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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

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

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2014.

INFORMATION PARTED BY

Name :	Ms. Arpita
Designation :	Admin Executive
Contact No.:	91-80-39415050
Date :	06.05.2015

LOCATIONS

Registered Office :	897/D, P.R. Complex, 80 Feet Road, 6th Block, Koramangala, Bangalore – 560095, Karnataka, India
Tel. No.:	91-80-39415050
Fax No.:	91-80-30443001
E-Mail :	venkataraghavan.n@kwe.com
Website :	http://www.kweindia.com

Branches :	Located At : Bangalore Gurgaon Delhi Mumbai Chennai Hyderabad Kolkata Pune Ahmedabad Cochin Nagpur Coimbatore

DIRECTORS

AS ON 29.05.2014

Name :	Karthi Baskar
Designation :	Director
Address :	No.344, Himagiri Meadows, 286 Bg Road,, Gottigere Village, Bangalore, 560076, Karnataka, India
Date of Appointment :	05.06.2008
DIN No.:	02880143

Name :	Seng Kok Tan
Designation :	Director
Address :	1A, Limau Garden, Singapore, 466078, Singapore
Date of Appointment :	06.05.2009
DIN No.:	02895454

Name :	Yoshinori Watarai
Designation :	Director
Address :	Flat B 22F Block 3, Cavendish Heights, 33 Perkins Road, Jardine's Lookout 999077, Hong Kong
Date of Appointment :	23.06.2011
DIN No.:	02904604

Name :	Yoshinobu Mitsuhashi
Designation :	Director
Address :	#3 Balmoral Cres, #08-02 The Balmoral Spring, Singapore, 259888, Singapore
Date of Appointment :	07.06.2010
DIN No.:	03121427

Name :	Kazuhisa Kawamura
Designation :	Director
Address :	Flat No B2, 1st Floor, Rathna Avenue, Bangalore - 560025, Karnataka, India
Date of Appointment :	19.04.2011
DIN No.:	03487832

KEY EXECUTIVES

Name :	Ms. Arpita
Designation :	Admin Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.05.2014

Names of Shareholders		No. of Shares
Kintetsu South Asia Development (S) Pte Limited, Singapore		3309998
KWE - Kintetsu World Express (HK) Limited, China		2

Total		3310000

Equity Share Break up (Percentage of Total Equity)

AS ON 29.05.2014

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is primarily engaged in the business of freight forwarding and providing facilities for the storage, warehousing, carriage and distribution of merchandise and logistics management services.

Products :

Item Code No.	Product Description
99831162	logistics management services

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products :

Garment / Food Items

Countries :

Singapore
US
China
Japan
America
Shanghai

Imports :

Products :

Finished goods

Countries :

China
US
Singapore

Terms :

Selling :

Cash, L/C and Credit

Purchasing :

Cash, L/C and Credit

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Toyota Group
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Medicare
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

500 (Approximately)

Bankers :

Bank Name	Standard Chartered Bank
Branch	Not Divulged
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 Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2013 (Rs. in Million)	31.03.2012 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks	0.687	2.823
Short-term borrowings
Working capital loans from banks [The company had obtained loan from Mizuho Bank for meeting Working Capital requirements that carried an interest rate 10.5% per annum These loans are repayable based on demand and are secured by assets.]	99.776	37.240
Total	100.463	40.063

Auditors :
Name :	S. Krishnaswamy and Company Chartered Accountants
Address :	389/1, 7th Main 42nd Cross, 5^th Block Jayanagar Bangalore – 560014, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAYFS5079B

Memberships :	--

Collaborators :	--

Related parties [AS ON 31.12.2013] :	Gati Kintetsu Express Private Limited Kintetsu Global I.T. Inc. Kintetsu World Express (Benelux) B.V. Head Quarter Kintetsu World Express (Canada) Inc. Kintetsu World Express (China) Co., Limited. Kintetsu World Express (Czech) S.R.O. Head Office Kintetsu World Express (Deutschland) Gmbh Hq & Adm Kintetsu World Express (Ea)B.V. Kintetsu World Express (France) S.A.S Head Office Kintetsu World Express (Guangzhou) Limited Kintetsu World Express (Hk) Limited Kintetsu World Express (India) Private Limited - Head Office Kintetsu World Express (Ireland) Limited Head Office Kintetsu World Express (Italia) S.R.L. - Head Office Kintetsu World Express (Korea) Inc. Hq & Admin. Dept Kintetsu World Express (Malaysia) Sdn. Bhd. Kintetsu World Express (Middle East) Fze (Hq) Kintetsu World Express (Philippines) Inc. Hq Kintetsu World Express (Rus), Inc. Llc Head Office Kintetsu World Express (Sa) Limited Hq Kintetsu World Express (Sweden) Ab -Head Office Kintetsu World Express (Switzerland)Ltd. - Head Office Kintetsu World Express (Taiwan), Inc. - Head Office Kintetsu World Express (U.K.) Limited, Head Office Kintetsu World Express (Usa) Head Office Kintetsu World Express (Xiamen) Co Limited (Hq) Kintetsu World Express Inc. Head Office Kintetsu World Express Mexico Head Office Kintetsu World Express South Africa (Pty) Limited (Hq) Kintetsu World Express(Australia)Pty Limited-Head Office Kintetsu World Express(Vietnam).,Inc. Headquarter Kwe-Kintetsu World Express (S) Pte Limited Kwe-Kintetsu World Express (Thailand) Co. Limited. - Head Office Pt Kintetsu World Express Indonesia (Hq)

Ultimate Holding company :	Kintetsu South Asia Development (S) Pte Limited

CAPITAL STRUCTURE

AS ON 29.05.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

3,310,000	Equity Shares	Rs.10/- each	Rs. 33.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

3,310,000	Equity Shares	Rs.10/- each	Rs. 33.100 Million

AS ON 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

20,60,000	Equity Shares	Rs.10/- each	Rs. 20.600 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

20,60,000	Equity Shares	Rs.10/- each	Rs. 20.600 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.600	20.600	5.000
(b) Reserves & Surplus	636.565	600.115	192.649
(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)	657.165	620.715	197.649

(3) Non-Current Liabilities
(a) long-term borrowings	0.687	2.823	4.439
(b) Deferred tax liabilities (Net)	(0.246)	1.482	0.368
(c) Other long term liabilities	64.777	40.221	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	65.218	44.526	4.807

(4) Current Liabilities
(a) Short term borrowings	99.776	37.240	1.937
(b) Trade payables	299.057	190.417	142.841
(c) Other current liabilities	0.000	0.000	10.649
(d) Short-term provisions	77.401	61.789	49.634
Total Current Liabilities (4)	476.234	289.446	205.061

TOTAL	1198.617	954.687	407.517

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	42.188	40.832	33.387
(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	372.080	372.080	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	233.169	179.510	110.053
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	647.437	592.422	143.440

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	508.985	312.721	230.161
(d) Cash and cash equivalents	22.446	20.746	32.059
(e) Short-term loans and advances	8.818	7.779	0.000
(f) Other current assets	10.931	21.019	1.857
Total Current Assets	551.180	362.265	264.077

TOTAL	1198.617	954.687	407.517

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2013	31.12.2012	31.12.2011
SALES
Income	1319.546	1318.848	914.130
Other Income
TOTAL	1319.546	1318.848	914.130

EXPENSES
TOTAL	1251.217	1266.921	874.206

GROSS PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	68.329	51.927	39.924

DEPRECIATION/ AMORTISATION	6.836	7.626	6.534

PROFIT/ (LOSS) BEFORE TAX	61.493	44.301	33.390

TAX	25.044	18.706	11.139

PROFIT/ (LOSS) AFTER TAX	36.449	25.595	22.251

EARNINGS IN FOREIGN CURRENCY
F.O.B. Value of Exports	741.710	622.000	NA
TOTAL EARNINGS	741.710	622.000	NA

Earnings / (Loss) Per Share (Rs.)	17.69	12.42	--

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
Net Profit Margin (PAT / Total Income)	(%)	2.76	1.94	2.43

Return on Total Assets (PBT/Total Assets}	(%)	7.44	7.60	8.19

Return on Investment (ROI) (PBT/Networth)		0.09	0.07	0.17

Debt Equity Ratio (Total Debt /Networth)		0.15	0.06	0.03

Current Ratio (Current Asset/Current Liability)		1.16	1.25	1.29

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	5.000	20.600	20.600
Reserves & Surplus	192.649	600.115	636.565
Share Application money pending allotment	0.000	0.000	0.000
Net worth	197.649	620.715	657.165

long-term borrowings	4.439	2.823	0.687
Short term borrowings	1.937	37.240	99.776
Total borrowings	6.376	40.063	100.463
Debt/Equity ratio	0.032	0.065	0.153

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	914.130	1318.848	1319.546
		44.274	0.053

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	914.130	1318.848	1319.546
Profit	22.251	25.595	36.449
	2.43%	1.94%	2.76%

LOCAL AGENCY FURTHER INFORMATION

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

INDEX OF CHARGES : NO CHARGES EXIST FOR COMPANY

FINANCIAL RESULTS [AS ON 31.12.2013]

The market remained competitive in 2013. Air Export, Air Import, Sea Export, Sea Import and warehousing business sales had good increase of 227%, 77%, 112%, 76% and 131% respectively. Good potential seen for Air export, Sea Export and Integrated supply chain requirements with their JV partner GATI services in the market. De-Growth in import products are mainly due to currency depreciation of INR against USD & JPY which made major fall in import market, major RFQ lost of Emerson Imports from USA & Singapore and Number of shipment count is 94% for air import and 98% for sea import, but loss in volume brought the sales de-growth.

They will be happy to note from the statement of accounts attached to this report, that the Company’s sales revenue turnover was Rs. 1913 Million (Previous year Rs 1318 Million).

BACKGROUND [AS ON 31.12.2013]

The company was incorporated on April 7, 1997 as a subsidiary of Kintetsu South Asia Development (Singapore) Pte. Limited ('KSAD'), a company promoted by Kintetsu World Express (Singapore) Pte. Limited ('KWE Singapore') and its nominee and registered with limited liability in Singapore. The ultimate holding company of the Company is Kintetsu World Express, Inc, Japan ('KWE Japan'). KWE Japan and its subsidiaries are collectively referred as Kintetsu World Express Group ('Kintetsu Group').

The Company is primarily engaged in the business of freight forwarding and providing facilities for the storage, warehousing, carriage and distribution of merchandise. The Company has its Head office at Bangalore and ten other branches in India at Delhi, Mumbai, Chennai, Hyderabad, Kolkata, Pune, Ahmadabad, Cochin, Nagpur and Coimbatore during the year ended December 31, 2013.

FIXED ASSETS

Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Computer equipment
Land

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No 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.63.85
UK Pound	1	Rs.98.47
Euro	1	Rs.71.51

INFORMATION DETAILS

Information Gathered by :	DPA

Analysis Done by :	KAR

Report Prepared by :	SNT

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
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		52

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.

MIRA INFORM REPORT

Unit