MIRA INFORM REPORT

Report No. :	323788
Report Date :	26.05.2015

IDENTIFICATION DETAILS

Name :	TAIKISHA ENGINEERING INDIA PRIVATE LIMITED (w.e.f.27.01.2015)
Formerly Known As :	TAIKISHA ENGINEERING INDIA LIMITED (w.e.f. 20.02.2004) TAIKISHA ENGINEERING INDIA PRIVATE LIMITED
Registered Office :	14, Palam Marg, Vasant Vihar, New Delhi – 110057
Tel. No.:	91-11-26147101
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.02.1995
Com. Reg. No.:	55-065836
Capital Investment / Paid-up Capital :	Rs. 6.000 Million
CIN No.: [Company Identification No.]	U74999DL1995PTC065836
TAN No.: [Tax Deduction & Collection Account No.]	DELT01889G
PAN No.: [Permanent Account No.]	AAACT2634G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Plant and Machinery for Automobile Industries.
No. of Employees :	380 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 2760000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company satisfactory track record. There seems continuous dip in the turnover and profit of the company However net worth of the company is satisfactory. General financial position of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered normal for 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 – 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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. D. Sharma
Designation :	Accounts Department
Contact No.:	91-124-2348246
Date :	22.05.2015

LOCATIONS

Registered Office :	14, Palam Marg, Vasant Vihar, New Delhi – 110057, India
Tel. No.:	91-11-26147101/ 26148671
Fax No.:	91-11-26148671
E-Mail :	s.pradeep@taikishaindia.com namakwana@taikishaindia.com
Website :	http://www.taikishaindia.com
Head Office:	Plot No. 404, Udyog Vihar, Phase-IV, Gurgaon -122015, Haryana India
Tel. No.:	91-124-2455215/ 16
E-Mail :	contact@taikishaindia.com
Factory 1 :	Sheet Metal Factory, Gat No. 321/323, Village Kondapuri, Taluka-Shirur, District - Pune, Maharashtra, India
Tel. No.:	91-2137-270131/666000
Factory 2 :	19, Sector III, IMT Manesar, Gurgaon – 122 051, Haryana, India
Tel. No.:	91-124-2290152/ 4669011
Fax No.:	91-124-2290153
E-Mail :	asrivastava@taikishaindia.com
Factory 3 :	Block No. 1147, Survey No. 1558, Lambdapur Road, Post Manjusar, Taluka-Salvi, District – Vadodara – 391775, Gujarat
Branch Offices :	Located At: · Thane · Pune · Chennai

DIRECTORS

AS ON 17.09.2014

Name :

Mr. Natwarlal Amrutlal Makwana

Designation :

Whole Time Director

Address :

“Astha”, Plot No.438, Sector 14, Gurgaon – 122 001, Haryana, India

Date of Birth/Age :

20.06.1940

Qualification :

BE Mechanical and Electrical

Experience :

17 years

Date of Appointment :

01.07.2013

DIN No.:

00329059

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	U27310GJ1980PTC003647	MULTI TECH ENGINEERING PVT LTD	Director	15/04/1980	15/04/1980	Active	NO
2	U29100MH1983PTC031139	MARGO ENGINEERS PVT LTD	Director	20/10/1983	20/10/1983	Active	NO
3	U74999DL1995PTC065836	TAIKISHA ENGINEERING INDIA Private Limited	Whole-time director	01/07/2013	24/02/1995	Active	NO
4	U34300PN1998PTC012837	SPECIALITY SINTERED PRODUCTS PRIVATE LIMITED	Director	03/09/1998	03/09/1998	Active	NO
5	U45205MH2000PTC128774	MES WATER MANAGEMENT PRIVATE LIMITED	Director	19/09/2000	19/09/2000	Active	NO
6	U74999MH2000PTC129254	MEMBRANE SYSTEM SPECIALISTS INDIA PRIVATE LIMITED	Director	19/10/2000	19/10/2000	Active	NO
7	U45200MH2007PTC167532	KAMALASHA INFRASTRUCTURE AND ENGINNERING PRIVATE LIMITED	Director	02/08/2010	19/11/2009	Active	NO

Name :

Ryoichi Uenodan

Designation :

Director

Address :

3-21-2, Sounam,Minami-Ku, Sagamihara, Kanagawa, 2520312, Japan

Date of Birth/Age :

20.07.1953

Qualification :

Engineer

Date of Appointment :

04.07.2013

DIN No.:

06619438

Name :

Hikaru Kimura

Designation :

Director appointed in casual vacancy

Address :

6-19-2, Maeno-Cho, Itabashi-Ku,Tokyo, 1740063, Japan

Date of Birth/Age :

04.01.1953

Qualification :

Engineer

Date of Appointment :

04.07.2013

DIN No.:

06619425

Name :

Mr. Hemant N. Makwana

Designation :

Whole Time Director

Address :

“Astha”, Plot No.438, Sector 14, Gurgaon – 122 001, Haryana, India

Date of Birth/Age :

11.07.1972

Date of Appointment :

11.06.2004

DIN No.:

00329094

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	U74999DL1995PTC065836	TAIKISHA ENGINEERING INDIA Private Limited	Whole-time director	11/06/2014	10/06/2004	Active	NO
2	U29100MH1983PTC031139	MARGO ENGINEERS PVT LTD	Director	02/09/2014	07/12/2013	Active	NO

Name :

Yutaka Onozawa

Designation :

Managing director

Address :

2-14-11 Gontazaka Hodogaya-Ku, Yokohama City Kanagawa, 2400026, Japan

Date of Birth/Age :

14.05.1965

Qualification :

Mechanical Engineering

Experience :

25 Years

Date of Appointment :

06.04.2012

DIN No.:

05223674

Name :

Tetsuya Ogawa

Designation :

Director appointed in casual vacancy

Address :

No. 2605 1 Chome 4-20, Ariake, Kotu-Ku, Tokyo, 1350063, Japan

Date of Birth/Age :

25.04.1953

Date of Appointment :

01.04.2012

DIN No.:

05223702

Name :

Nobuhiko Harada

Designation :

Director

Address :

3116-64 Ikenouchi, Komaki City Aichi, 4850804, Japan

Date of Birth/Age :

27.02.1952

Qualification :

Engineer

Date of Appointment :

18.09.2012

DIN No.:

05223729

Name :

Yukinori Hamanaka

Designation :

Director

Address :

9-40-7 Asumigaoka, Midori-Ku, Chiba City, 2670066, Japan

Date of Birth/Age :

10.12.1958

Qualification :

Engineer

Date of Appointment :

18.09.2012

DIN No.:

05223751

KEY EXECUTIVES

Name :	Mr. D. Sharma
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 17.09.2014

Names of Shareholders	No. of Shares
Taikisha Limited, Japan	329997
Sumitomo Corporation, Japan	30000
Margo Engineers Private Limited, India	239998
Kamiyama Satoru	1
Hashimoto Kazunori	1
Saito Masaaki	1
Hemant Makwana	1
Natwarlal Amrutal Makwana	1
Total	600000

AS ON 17.09.2014

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]	60.00
Bodies corporate	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Plant and Machinery for Automobile Industries.

Products/ Services :

ITC Code No.	Product Descriptions
90328910	Engineering Items

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Finished Goods

Countries :

· Switzerland

· Hong Kong

Imports :

Products :

Raw Material

Countries :

Japan

Terms :

Selling :

Cash and Credit

Purchasing :

Cash 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 :

Wholesalers , Retailers and End Users

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 :

380 (Approximately)

Bankers :

Bank Name:	Bank of Tokya Mitsublishi Limited
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 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

· Bank of India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee Term Loans from Banks	6.627	4.179
SHORT TERM BORROWINGS
Other Loans and advances, Other	109.580	59.194
Rupee Term Loans from Banks	0.000	0.483
Total	116.207	63.856

Banking Relations :	--
Auditors :
Name :	Gupta Thapar and Company Chartered Accountants
Address :	D-53 Anand Niketan, New Delhi, India
Income-tax PAN of auditor or auditor's firm :	AAKPG8803F
Cost Auditor :	Jugal K Puri and Associates Cost Accountants
Address :	New Delhi, India
Ultimate Holding Company:	Taikisha Limited
Enterprises over which key management personnel and their relatives are able to exercise significant influence :	· Multi Engineering Services · Margo Engineer Private Limited · Advance Tech Engineering Private Limited · Multi Engineering Industries

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600,000	Equity Shares	Rs. 10/- each	Rs. 6.000 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	6.000	6.000	6.000
(b) Reserves & Surplus	960.721	911.018	818.449
(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)	966.721	917.018	824.449
(3) Non-Current Liabilities
(a) Long-term borrowings	135.754	67.196	16.742
(b) Deferred tax liabilities (Net)	9.727	8.504	6.424
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	399.128
Total Non-current Liabilities (3)	145.481	75.700	422.294
(4) Current Liabilities
(a) Short term borrowings	448.704	544.898	321.850
(b) Trade payables	293.016	345.876	0.000
(c) Other current liabilities	129.630	283.887	62.824
(d) Short-term provisions	153.622	261.290	412.117
Total Current Liabilities (4)	1024.972	1435.951	796.791
TOTAL	2137.174	2428.669	2043.534
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	671.123	640.333	323.167
(ii) Intangible Assets	12.270	12.471	8.690
(iii) Capital work-in-progress	42.327	46.264	16.474
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	16.136	29.353	31.896
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	83.911	70.339	80.875
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	825.767	798.760	461.102
(2) Current assets
(a) Current investments	5.000	5.000	4.734
(b) Inventories	82.976	260.317	90.324
(c) Trade receivables	839.429	818.883	961.189
(d) Cash and cash equivalents	191.162	267.585	269.839
(e) Short-term loans and advances	155.783	252.959	225.614
(f) Other current assets	37.057	25.165	30.732
Total Current Assets	1311.407	1629.909	1582.432
TOTAL	2137.174	2428.669	2043.534

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2131.147	2064.326	3254.441
		Other Income	32.298	25.907	23.829
		TOTAL (A)	2163.445	2090.233	3278.270
Less	EXPENSES
		Cost of Materials Consumed	200.872	241.896	285.604
		Purchases of Stock-in-Trade	977.275	1140.242	1796.503
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	152.534	(140.802)	73.379
		Employees benefits expense	241.282	199.980	173.995
		Prior Period Items	1.664	0.301	2.351
		Exceptional Items	(16.413)	(24.173)	(1.755)
		Other expenses	322.019	316.926	404.857
		TOTAL (B)	1879.233	1734.370	2734.934
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		284.212	355.863	543.336
Less	FINANCIAL EXPENSES (D)		64.833	32.258	43.707
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		219.379	323.605	499.629
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.000	60.697	45.285
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		146.379	262.908	454.344
Less	TAX (H)		51.750	88.911	150.670
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		94.629	173.997	303.674
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		786.322	746.081	670.912
	BALANCE CARRIED TO THE B/S		935.340	1018.907	804.747
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	27.119	43.982	21.642
	IMPORTS
		Raw Materials	29.760	15.281	61.19
		Capital Goods	584.650	81.366	27.963
	TOTAL IMPORTS		614.410	96.647	89.153
	Earnings Per Share (Rs.)		157.72	290.00	506.12

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	4.44	8.43	9.33
Operating Profit Margin (PBDIT/Sales)	(%)	13.34	17.24	16.70
Return on Total Assets (PBT/Total Assets}	(%)	7.34	11.52	23.73
Return on Investment (ROI) (PBT/Networth)		0.15	0.29	0.55
Debt Equity Ratio (Total Debt/Networth)		0.60	0.67	0.41
Current Ratio (Current Asset/Current Liability)		1.28	1.14	1.99

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	6.000	6.000	6.000
Reserves & Surplus	818.449	911.018	960.721
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	824.449	917.018	966.721
Long-term borrowings	16.742	67.196	135.754
Short term borrowings	321.850	544.898	448.704
Total borrowings	338.592	612.094	584.458
Debt/Equity ratio	0.411	0.667	0.605

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	3254.441	2064.326	2131.147
		(36.569)	3.237

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	3254.441	2064.326	2131.147
Profit	303.674	173.997	94.629
	9.33%	8.43%	4.44%

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	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
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	No
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
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

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee Term Loans from Banks	129.127	63.017
SHORT TERM BORROWINGS
Other Loans and advances, Other	339.124	485.221
Total	468.251	548.238

YEAR 2013-14 OVERALL ECONOMY AND EFFECT ON TEI PERFORMANCE

Indian economy FY 2013-14 was poor and India GDP had dropped to 4.5% which was one of the lowest in last decade. This was mainly due to no new investments and development since investors not confident to invest and the prime reason was old government policy and not good governance.

Due to above, automotive customers were also not investing for new projects and hence new projects were very less. This resulted into very low budget to our customer and severe competition among various paint shop suppliers and on account of it, TEI performance was also not good and could do sales turnover only to Rs. 212 0.000 million and profit before tax was Rs. 131.600 million. The profitability is quite reduced mainly due to very severe competition and order received at almost no profit and not able to cover even complete overheads of the company.

YEAR 2013-14 KEY PROJECTS AND ACHIEVEMENTS:

M/s DICV vendor M/s MSGI new frame painting line, Chennai

TEI booked order for new frame painting line. This project is special project for TEI since it is a different component which is 12 mtrs long and process involved is also new consisting of washing, shot blasting and powder coating which TEI usually does not do, hence it is new opportunity for TEI.

International Tractor Robotic Painting Line, Hoshiarpur Punjab

TEI could book order from new customer M/s ITL who are producing tractors for local and exports as agriculture industry is doing good and hence they have a big demand of new tractor. This order booked was with very severe competition with M/s Eisenmann and hence the project profitability is very low, however it was booked so that at least project members salary cost is covered and ideal cost for the manpower is reduced.

IRCON – Coach Painting Plant, Rai Bareily

This project was executed successfully and painting trials were found to be satisfactory. TEI is now further waiting from Indian Railways to provide coaches so that after painting of several coaches the final prove out will be done. This successful completion of the plant has further added high brand value of Taikisha India in complete Indian Railway department and have very much appreciate our quality and commitment. This will result into getting additional future railway business.

SOME IMPORTANT PROJECT BIDS LOST:

TEI was aware year 2013-14 would be competitive and challenging, hence TEI was aggressively trying to book all the possible order form clients in spite of some projects TEI lost and could not win from the client.

Mahindra and Mahindra New Painting Line, Chakan

TEI lost this project to M/s Durr, this was mainly due to dry booth technology. Presently TKS Japan has developed dry booth technology but it is using CaCo3 powder which handling is not easy by the client, hence client has awarded this order to M/s Durr who is having technology of dry booth without water and paint removal is just by paper filtration which is comparatively easy to operate.

Mother son Sumi Bumper Painting Line for Ford, Gujarat

This order was lost to M/s Eisenmann mainly on account of price difference. For this TEI has quoted with low profit but was careful in cost since there were some new requirements of customer like robotic flaming, Co2 dry ice cleaning and complete robotic painting without any manual touch up. After lot of discussions and detail internal working, TEI could offer such client new requirement, however could not compete in the cost and lost the project.

Royal Enfield, Chennai

This project was lost to M/s Durr. This project was comparatively simple and cost was the main criteria. TEI had worked very competitive price by considering no profit even reducing overhead and also reduced net cost by having more accurate design and light weight consideration but M/s Durr has booked this project at very low cost probably in loss mainly due to reason they had no project in hand and all their approx. 250 manpower were sitting completely idle and they being in Chennai were able to offer comparatively lesser project overhead cost

FUTURE PAINT SHOP BUSINESS:

TEI is more aggressively working to increase paint shop business activity and have made Chennai office active in order to book small business orders from company based in South India as in Chennai many new small paint shop set up are being done. Also TEI is working towards booking order of two large size projects i.e. for M/s Isuzu Chennai and M/s Honda Scooter and Motorcycle Gujarat. The order value of these projects will be sizeable since they are large size projects.

Further TEI has strongly built good relation with M/s DICV and have also booked new order from M/s DICV for their bus chassis painting line and M/s Wright Bus body paint facility. These are small value orders, however based on good relationship with M/s DICV future business with them will also be of great advantage to TEI.

TEI NEW OFFICE IN GURGAON:

TEI has already started construction of new office in Gurgaon which is near to the National Highway (NH)-8 main highway road and construction presently is going on in full swing. It is expected office construction work will be completed by end of Dec. 2014 and TEI consider to shift to new office from next financial year from April 2015 onwards. This office will give TEI advantage of bigger space for accommodating new division like GT and also have better facility for training room etc.

TEI GT DIVISION:

TEI GT division has become very active and working towards booking order of new projects mainly in Chennai and Gujarat. For improving GT division business, TKS Japan has deputed one senior experienced member and also TEI has recruited one senior experienced sales and estimation member and are aggressively discussing new business with companies like M/s Kajima, M/s Horiba, M/s Tata Motors, etc. Also TEI has contacted to various new project consultant companies through whom TEI can book orders of other new customers in automotive and non-automotive sector.

In current year and next year, it is expected TEI GT division work is likely to increase since more Japanese companies would be coming to India and investing for better business opportunities.

NEW BUSINESS DEVELOPMENT:

TEI is aggressively working for developing new business and presently has taken up electrical automation control panel manufacturing and supply. TEI has written to various companies in USA and also aggressively discussing with various Indian companies. TEI could successfully book some control panel orders from non-automotive companies like Bokaro Steel, Unicharm, Encon Systems, etc.

TEI CURRENT YEAR PERFORMANCE AND FUTURE PROSPECTS:

TEI expect India GDP to improve and increase to approx. 6% as predicted by the economists. The major growth and contribution will be only after Dec. 2014 mainly since the new government is active and aggressively passing required and correct new polices.

The effect of the new government and good governance, international companies have again started investing in India in order to tap the business opportunities and due to this the overall business sentiments has gone up and new projects have kick started for automotive company, non-automotive and infrastructure projects.

For current year, TEI sales would be expected similar to last year as the present business and economy is still tough and the profitability also for in hand projects by TEI is very low due to severe competition. It is expected total profitability for current year will be very low comparing to last year, however TEI is aggressively trying to book shut down projects and other small projects so that can be completed soon and turnover and profitability can be improved for current year up to March 2015.

TEI in current year shall book order like M/s Isuzu Chennai, M/s HMSI Gujarat, however turnover and profitability effect will only achieved in year 2015-16. TEI Company sees good growth and much better performance in coming 3 to 5 years due to new government policy and good relation with Japan country. For this TEI is further making accurate detail long term and mid-term plan so that such opportunities can be encased by the company.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Claims against the company not acknowledged as debt	212,570	212,570
Bank Guarantees	315,182	767,389

FIXED ASSETS:

· Land

· Plant and Equipment

· Vehicles

· Office Equipment

· Buildings

· Furniture and Fixtures

· 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. 63.62
UK Pound	1	Rs. 98.51
Euro	1	Rs. 69.93

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	ARC

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		43

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.