MIRA INFORM REPORT

Report No. :	509164
Report Date :	14.05.2018

IDENTIFICATION DETAILS

Name :	NIFCO SOUTH INDIA MANUFACTURING PRIVATE LIMITED
Registered Office :	New No. 50, Old No. 109, Mannur Village, Sriperumbudur Taluk, Kancheepuram District – 602105, Tamilnadu
Tel. No.:	91-44-37187006/37187004
Country :	India
Financials (as on) :	31.03.2016
Date of Incorporation :	19.07.2010
Com. Reg. No.:	18-076629
Capital Investment / Paid-up Capital :	INR 1300.700 Million
CIN No.: [Company Identification No.]	U25200TN2010FTC076629
IEC No.: [Import-Export Code No.]	0410023728
GSTN : [Goods & Service Tax Registration No.]	33AADCN3438M1ZC
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
TIN No.:	33721667950
PAN No.: [Permanent Account No.]	AADCN3438M
Legal Form :	Private Limited Liability Company
Line of Business :	The company engaged in the manufacture and sale of plastic parts for automobiles. [Registered Activity and also Confirmed by management]
No. of Employees :	100 (Approximately)

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 3000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a step down subsidiary of “Nifco Korea Inc”, Korea. The company was incorporated in the year 2010. It is a manufacturer and trader of Plastic Parts for Automobiles. Management has failed to file its financials with Registrar of Companies for the FY 2017. As per the available financial records of 2016, the company has achieved 22.89% growth in its revenue as compared to the previous year revenue along with average profit margin of 3.03%. The moderate financial profile of the company is marked by negative reserve base along with negligible debt level. However, the rating takes into consideration strong financial and managerial support that the company receives from its holding entity backed by its well experienced management team. Business is active. Payment seems to be slow but correct. In view of aforesaid, the company can be considered 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

Country Name	Previous Rating (31.12.2016)	Current Rating (31.03.2017)
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 31-03-2018.

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 14.05.2018

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Kannan
Designation :	Finance Officer
Contact No.:	91-44-37187006
Date:	12.05.2018

LOCATIONS

Registered Office / factory:	New No. 50, Old No. 109, Mannur Village, Sriperumbudur Taluk, Kancheepuram District – 602105, Tamilnadu, India
Tel. No.:	91-44-37187006/37187004 / 37187009
Mobile No:	91 –9677111336 (Mr. Jae Hoo Lee)
Fax No.:	Not Available
E-Mail :	jhulee@nifcokorea.com raja.rajadurai@nifcokorea.in
Website :	http://www.nifco.co.kr
Location :	Owned

DIRECTORS

AS ON 31.03.2018

Name :	Jeunghun Seo
Designation :	Managing Director
Address :	Crest Towers, Door No. 901, Tower No. 4, 142, Velachery Main Road, Chennai - 600042, Tamilnadu, India
Date of Appointment :	01.04.2018
DIN No.:	07765771
Name :	Mr. Hyundon Choi
Designation :	Director
Address :	101-501, Woosung Apartment, 4/4 332, Gil- Dong, Gangdong – Gu, Seoul - 138050, , Korea
Date of Birth/Age :	22.10.1960
Date of Appointment :	30.09.2014
DIN No.:	06926854
Name :	Dongho Yoo
Designation :	Alternate Director
Address :	Prestige Bella Vista, Tower 7, 12th Floor, Door No 7143, Iyyapanthangal, Chennai – 600056, Tamilnadu, India
Date of Appointment :	26.03.2018
DIN No.:	08095477

KEY EXECUTIVES

Name :	Mr. Kannan
Designation :	Finance Officer

MAJOR SHAREHOLDERS

AS ON 31.03.2016

Names of Shareholders	No. of Shares	% of Holdings
Nifco Korea Inc., Korea	9755250	75.00
Nifco Inc, Japan	3251750	25.00
Total	13007000	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 21.09.2016

Category	Percentage
Public/Other than promoters - Body corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company engaged in the manufacture and sale of plastic parts for automobiles. [Registered Activity and also Confirmed by management]

Products / Services :

Name and Description of main products / services	ITC Code of the Product/service
Airvent	87089900
Centrefacia	87089900
Airvent	84807100

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

L/C, Advance Payment and Cheque

Purchasing :

L/C, Advance Payment and Cheque

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 :

End Users

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

No. of Employees :

100 (Approximately)

Bankers :

Banker 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 :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

Auditors :
Name :	A S A and Associates LLP Chartered Accountants
Address :	New No. 39, First Main Road, R A Puram, Chennai - 600028, Tamilnadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFA4690A
Memberships :	Not Available
Collaborators :	Not Available
Holding company (AS ON 31.03.2016):	Nifco Korea Inc, Korea, Republic of
Ultimate Holding Company (AS ON 31.03.2016):	Nifco Inc, Japan
Fellow Subsidiary Company (AS ON 31.03.2016):	Nifco Thailand Co Limited Nifco UK Limited Union Nifco Co Limited.

CAPITAL STRUCTURE

AS ON 31.03.2016

Authorised Capital :

No. of Shares	Type	Value	Amount
13007000	Equity Shares	INR 100/- each	INR 1300.700 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13007000	Equity Shares	INR 100/- each	INR 1300.700 Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2016	31.03.2015	31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1300.700	1300.700	1300.700
(b) Reserves and Surplus	(249.286)	(277.735)	(203.738)
(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)	1051.414	1022.965	1096.962
(3) Non-Current Liabilities
(a) long-term borrowings	193.769	140.720	20.332
(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	2.745	1.386	0.789
Total Non-current Liabilities (3)	196.514	142.106	21.121
(4) Current Liabilities
(a) Short-term borrowings	41.863	96.824	0.000
(b) Trade payables	314.608	302.251	235.846
(c) Other current liabilities	125.191	34.433	62.398
(d) Short-term provisions	0.195	0.033	0.441
Total Current Liabilities (4)	481.857	433.541	298.685
TOTAL	1729.785	1598.612	1416.768
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1147.024	1214.810	1091.967
(ii) Intangible Assets	76.746	45.521	19.022
(iii) Tangible assets capital work-in-progress	31.357	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 loans and advances	15.436	18.877	8.373
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1270.563	1279.208	1119.362
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	130.772	85.821	115.539
(c) Trade receivables	162.601	129.284	78.986
(d) Cash and bank balances	47.388	7.969	27.786
(e) Short-term loans and advances	118.461	96.330	75.095
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	459.222	319.404	297.406
TOTAL	1729.785	1598.612	1416.768

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2016	31.03.2015	31.03.2014
	SALES
	Income	940.454	765.249	268.929
	Other Income	1.191	1.471	10.365
	TOTAL	941.645	766.720	279.294
Less	EXPENSES
	Cost of Materials Consumed	232.117	187.800	60.631
	Purchases of Stock-in-Trade	122.887	67.660	136.728
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(55.466)	58.657	(75.040)
	Employee benefit expense	109.049	88.222	77.237
	Other expenses	326.504	299.967	120.025
	TOTAL	735.091	702.306	319.581
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	206.554	64.414	(40.287)
Less	FINANCIAL EXPENSES	34.392	12.605	0.097
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	172.162	51.809	(40.384)
Less/ Add	DEPRECIATION/ AMORTISATION	143.713	125.806	68.438
	PROFIT/ (LOSS) BEFORE TAX	28.449	(73.997)	(108.822)
Less	TAX	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	28.449	(73.997)	(108.822)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	241.536	180.035	0.000
	TOTAL EARNINGS	241.536	180.035	0.000
	IMPORTS
	Raw Materials	252.488	196.199	214.008
	Capital Goods	68.090	277.597	152.081
	TOTAL IMPORTS	320.578	473.796	366.089
	Earnings / (Loss) Per Share (INR)	2.19	(5.69)	(8.52)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2016	31.03.2015	31.03.2014
Current Maturities of Long term debt	87.325	0.000	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	142.838	40.526	(16.605)
Net cash flows from (used in) operating activities	143.649	39.763	(16.605)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Average Collection Days (Sundry Debtors / Income * 365 Days)	63.11	61.66	107.20
Account Receivables Turnover (Income / Sundry Debtors)	5.78	5.92	3.40
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	323.47	431.85	436.18
Inventory Turnover (Operating Income / Inventories)	1.58	0.75	-0.35
Asset Turnover (Operating Income / Net Fixed Assets)	0.16	0.05	-0.04

LEVERAGE RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.44	0.36	0.23
Debt Equity Ratio (Total Liability / Networth)	0.31	0.23	0.02
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.46	0.42	0.27
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.19	1.23	1.01
Interest Coverage Ratio (PBIT / Financial Charges)	6.01	5.11	(415.33)

PROFITABILITY RATIOS

PARTICULARS		31.03.2016	31.03.2015	31.03.2014
PAT to Total Income ((PAT / Total Income) * 100)	%	3.02	(9.65)	(38.96)
Net Profit Margin ((PBT / Operating Income) * 100)	%	13.77	(114.88))	270.12
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.64	(4.63	(7.68)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	2.71	(7.23)	(9.92)

SOLVENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Current Ratio (Current Assets / Current Liabilities)	0.95	0.74	1.00
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.68	0.54	0.61
G-Score Ratio Financial (Networth / Total Assets)	0.61	0.64	0.77
G-Score Ratio Debt (Debts / Equity Capital)	0.25	0.18	0.02
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.95	0.74	1.00

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

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2014	31.03.2015	31.03.2016
	(INR In Million)	(INR In Million)	(INR In Million)
Share Capital	1300.700	1300.700	1300.700
Reserves & Surplus	(203.738)	(277.735)	(249.286)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1096.962	1022.965	1051.414
Long-term borrowings	20.332	140.720	193.769
Short term borrowings	0.000	96.824	41.863
Total borrowings	20.332	237.544	235.632
Debt/Equity ratio	0.019	0.232	0.224

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015	31.03.2016
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	268.929	765.249	940.454
		184.554	22.895

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015	31.03.2016
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	268.929	765.249	940.454
Profit/ (Loss)	(108.822)	(73.997)	28.449
	(40.46 %)	(9.67 %)	3.03 %

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	Yes
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	No
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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGE: NO CHARGES EXISTS FOR COMPANY

BACKGROUND

Subject was incorporated as a private limited company on July 19, 2010. The Company has been set up for engaging in the manufacture and sale of plastic parts for automobiles. The Company is a subsidiary of Nifco Korea Inc. and its ultimate parent company is Nifco Inc. Japan.

UNSECURED LOANS:

(INR In Million)

Particulars	As on 31.03.2016	As on 31.03.2015
LONG TERM BORROWING
Other loans and advances	193.769	140.720
SHORT TERM BORROWING
Loans repayable on demand from banks	41.863	96.824
Total	235.632	237.544

FIXED ASSETS:

Tangible assets

• Land
• Buildings
• Plant and equipment
• Motor vehicles
• Furniture and fixtures
• Office equipment
• Computer equipments

Intangible assets

• 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 records 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 67.22
UK Pound	1	INR 90.88
Euro	1	INR 80.09

INFORMATION DETAILS

Information Gathered by :	ARC
Analysis Done by :	VAR
Report Prepared by :	KVT

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.