MIRA INFORM REPORT

Report No. :	486629
Report Date :	17.01.2018

IDENTIFICATION DETAILS

Name :	SANOH INDIA PRIVATE LIMITED
Registered Office :	Suit 601-F, 5 Hailey Road, New Delhi – 110001
Tel. No.:	91-1284-264248
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	04.04.2012
Com. Reg. No.:	55-234031
Capital Investment / Paid-up Capital :	INR 200.000 Million
CIN No.: [Company Identification No.]	U29292DL2012FTC234031
IEC No.:	Not Divulged
GSTIN:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AARCS4790B
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is primarily engage in the business of manufacturing of fuel injection rails (FIR) for the automobile sector. (Registered Activity)
No. of Employees :	Information declined by the management

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “Sanoh Industrial Company Limited, Japan” and was incorporated in the year 2012. For the financial year 2017, the company has achieved massive growth in its revenue as compared to the previous year but has incurred operational loss. The moderate financial risk profile of the company is marked by eroded net worth base due to accumulated losses. Rating takes into consideration the subject’s debt free balance sheet profile. Rating also takes into account the strong financial and managerial support that company receives from its holding entity backed by its well experienced management team. Payments are reported to be slow but correct. In view of aforesaid, 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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 17.01.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Mr. Gajendra Talwar
Designation :	Assistant General Manager (Finance)
Contact No.:	91-124-4149103
Date :	16.01.2018

LOCATIONS

Registered Office :	Suit 601-F, 5 Hailey Road, New Delhi – 110001, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	edure@sanoh.com vivek.gupta@sanoh.co.in
Website:	www.sanoh.com
Factory :	Plot No. 332, Sector - 3, Phase - II, Industrial Growth Centre, Bawal - 123501, Haryana, India
Tel. No.:	91-1284-264248/ 49/ 50
Fax No.:	91-1284-264248

DIRECTORS

As on 31.03.2017

Name :

Tadayoshi Mizukami

Designation :

Director

Address :

520-4 Nishiushi Koga, Ibaraki Koga 3060223, Japan

Date of Birth/Age :

17.07.1968

Qualification:

Post Graduate

Date of Appointment :

04.04.2012

DIN No.:

05176668

Other Directorship :

CIN/FCRN	Company Name	Begin Date	End Date
U25190DL1996PTC080998	STI SANOH INDIA PRIVATE LIMITED	01/08/2016	-

Name :

Kazunari Funabashi

Designation :

Director

Address :

Flat No.-710, Tower L-3, Ashiana Aangan, Bhiwadi, Alwar-301019, Rajasthan, India

Date of Appointment :

08.02.2016

DIN No.:

07428315

Name :

Toshihiro Takemura

Designation :

Additional Director

Address :

PPF031, DLF Park Place, DLF Phase-V, Golf Course Road, Gurugram- 122002, Haryana, India

Date of Appointment :

08.02.2016

DIN No.:

07428335

KEY EXECUTIVES

Name :	Ummang Madan
Designation :	Company Secretary
Address :	267A/20,Shakti Nagar, Gurugram -122001, Haryana, India
Date of Appointment :	01.09.2017
PAN No.:	ACSPU8285B
Name :	Mr. Gajendra Talwar
Designation :	Assistant General Manager (Finance)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2016

Names of Shareholders	No. of Shares	%age holding
Sanoh Industrial Company Limited, Japan	1998000	99.90
Kazunari Funabashi	2000	0.10
Total	2000000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2017

Category	Percentage
Promoters [Individual/Hindu Undivided Family-Foreign national (other than NRI)]	0.10
Promoters (Body corporate)	99.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engage in the business of manufacturing of fuel injection rails (FIR) for the automobile sector. (Registered Activity)

Products :

Item Code No.	Product Description
84099120	Fuel Injection Rails (FIRs)

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information declined by the management

Bankers :

Bank Name	Not Divulged
Branch	--
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Auditors :
Name :	KSSM and Company Chartered Accountants
Address :	Flat No. D1, Plot No. C-24-C Shalimar Garden, Extension-II, Sahibabad Ghaziabad-201010, Uttar Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAUFM4413B
Memberships :	Not Available
Collaborators :	Not Available
Holding Company:	Sanoh Industrial Company Limited, Japan
Fellow subsidiaries / Associated Enterprises:	STI Sanoh India Limited Sanoh China Investment Company Limited Able Sanoh Industries Company Limited Sanoh Industrial De Mexico S.A De C.V Shanghai Sanoh Mechanical Manufacture Company Limited

CAPITAL STRUCTURE

As on 29.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	INR 100/- each	INR 500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	INR 100/- each	INR 200.000 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	200.000	200.000	200.000
(b) Reserves and Surplus	(254.430)	(236.401)	(145.677)
(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)	(54.430)	(36.401)	54.323
(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	0.248	0.394	0.191
Total Non-current Liabilities (3)	0.248	0.394	0.191
(4) Current Liabilities
(a) Short-term borrowings	0.000	0.000	0.000
(b) Trade payables	398.241	328.453	270.580
(c) Other current liabilities	12.745	1.878	3.579
(d) Short-term provisions	0.246	0.063	0.001
Total Current Liabilities (4)	411.232	330.394	274.160
TOTAL	357.050	294.387	328.674
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	221.200	200.198	197.593
(ii) Intangible Assets	0.000	0.003	0.020
(iii) Tangible assets capital work-in-progress	0.830	0.830	27.460
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.030	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term loans and advances	3.435	3.654	3.965
(e) Other Non-current assets	0.258	0.241	0.000
Total Non-Current Assets	225.753	204.926	229.038
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	56.470	16.857	16.144
(c) Trade receivables	28.531	21.601	20.875
(d) Cash and bank balances	8.814	15.410	22.507
(e) Short-term loans and advances	37.482	35.593	40.035
(f) Other current assets	0.000	0.000	0.075
Total Current Assets	131.297	89.461	99.636
TOTAL	357.050	294.387	328.674

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	221.704	87.814	71.096
	Other Income	16.856	2.994	35.792
	TOTAL	238.560	90.808	106.888
Less	EXPENSES
	Cost of Materials Consumed	135.198	39.480	38.715
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(2.478)	2.717	(8.220)
	Employees benefits expense	39.235	32.086	31.150
	Other expenses	62.340	79.692	52.674
	Prior period item	1.736	2.231	0.000
	TOTAL	236.031	156.206	114.319
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	2.529	(65.398)	(7.431)
Less	FINANCIAL EXPENSES	0.000	0.000	0.555
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2.529	(65.398)	(7.986)
Less/ Add	DEPRECIATION/ AMORTISATION	20.558	25.326	24.916
	PROFIT/ (LOSS) BEFORE TAX	(18.029)	(90.724)	(32.902)
Less	TAX	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	(18.029)	(90.724)	(32.902)
	EARNINGS IN FOREIGN CURRENCY	7.108	7.272	0.070
	IMPORTS
	Raw materials and components	121.155	30.219	34.157
	Capital Goods	11.245	19.841	55.346
	TOTAL IMPORTS	132.400	50.060	89.503
	Earnings / (Loss) Per Share (INR)	(9.01)	(45.25)	(16.45)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Net cash flows from (used in) operations	35.004	(8.500)	5.252
Net cash flows from (used in) operating activities	34.955	(8.537)	5.286

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	46.97	89.78	107.17
Account Receivables Turnover (Income / Sundry Debtors)	7.77	4.07	3.41
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	1075.15	3036.61	2550.99
Inventory Turnover (Operating Income / Inventories)	0.04	(3.88)	(0.46)
Asset Turnover (Operating Income / Net Fixed Assets)	0.01	(0.33)	(0.03)

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	1.15	1.12	0.83
Debt Equity Ratio (Total Liability / Networth)	0.00	0.00	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	(7.56)	(9.08)	5.05
Fixed Assets to Networth (Net Fixed Assets / Networth)	(4.08)	(5.52)	4.14
Interest Coverage Ratio (PBIT / Financial Charges)	0.00	0.00	(13.39)

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	(8.13)	(103.31)	(46.28)
Return on Total Assets ((PAT / Total Assets) * 100)	%	(5.05)	(30.82)	(10.01)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	33.12	249.23	(60.57)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.32	0.27	0.36
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.18	0.22	0.30
G-Score Ratio Financial (Networth / Total Assets)	(0.15)	(0.12)	0.17
G-Score Ratio Debt (Debts / Equity Capital)	0.00	0.00	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.32	0.27	0.36

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

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Share Capital	200.000	200.000	200.000
Reserves & Surplus	(145.677)	(236.401)	(254.430)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	54.323	(36.401)	(54.430)
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	71.096	87.814	221.704
		23.515	152.470

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	71.096	87.814	221.704
Profit/ (Loss)	(32.902)	(90.724)	(18.029)
	(46.28 %)	(103.31 %)	(8.13 %)

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)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
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	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	No
35	Negative Reporting by Auditors in the Annual Report	No

BACKGROUND

The Company, incorporated on 4 April, 2012, is a wholly owned subsidiary of Sanoh Industrial Company, which is based in Japan. The Company has been set up to primarily engage in the business of manufacturing of fuel injection rails (FIR) for the automobile sector.

AUTOMOTIVE INDUSTRY

The Indian Automobile Industry (except 2 wheeler) grew by 6.7% during the year (7.1% previous year). With the passenger vehicle industry growth of 9.2% and record sales crossing the 3 million mark. The commercial vehicle industry grew 4.2% with the LCV (2 to 3.5T PU segment) posting the highest ever sales of 0.2mn and taking 29% share of the total commercial vehicle industry. However the medium and heavy commercial vehicle segment remain flat at a volume of 0.3mn. The 2 wheeler industry grew by 6.9% with sales crossing a record 17mn during the year.

This growth was broad based with almost half the manufacturers showing improved sales over the previous year. New models were the primary growth drivers. The reduction in lending rates, coupled with banks renewed focus on retail loans, easy credit and finance facility, favorable duties and tax structure, change in regulatory guidance on diesel engine vehicles and disposable income in the hands of consumers also supported growth in different segment. The gap between prices of diesel and petrol continue to reduce and it shifted the favor of customer towards petrol vehicles during the year, which is also reflected in 4% lower sales of diesel vehicle this year in comparison to last year share of 44.1% in total automobile sales.

BISINESS PROSPECTS

The outlook for Indian Auto Industry in medium term is very positive. As per Society of Indian Automobile Manufacturers (SIAM), the growth of passenger vehicle (PV) and commercial vehicle (CV) industry in India is likely to be in double digit in next 2 FY 2017-19. As an estimate the total PV and CV market is likely to grow up to 5.7mn. vehicles by end of FY 2019-20 which shall be average 15% higher than the current market of 3.85mn vehicles. As per SIAM forecast the passenger vehicle (PV) Industry is likely to grow by 8-9% in the FY2017-18, and in the same period, the LCV segment is likely to grow by 6-7% and commercial vehicle segment by 5-6%. The remaining segment of Automobile Industry are likely to grow by average of 10%.

INDEX OF CHARGES: NO CHARGES EXISTS FOR COMPANY

FIXED ASSETS

• Furniture and Fixture
• Plant and Machinery
• Office equipment
• Computer software
• Plant and equipment

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	INR
US Dollar	1	INR 64.91
UK Pound	1	INR 81.43
Euro	1	INR 69.27

INFORMATION DETAILS

Information Gathered by :	SUV
Analysis Done by :	PRI
Report Prepared by :	RKI

SCORE FACTORS

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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.