MIRA INFORM REPORT

Report Date :

23.12.2011

IDENTIFICATION DETAILS

Name :	MAGNA RICO POWERTRAIN PRIVATE LIMITED
Registered Office :	38, K. M. Stone, Delhi Jaipur Highway, Village Khandsa, C/o Rico Auto Industries Limited, Gurgaon-122001, Haryana
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.03.2008
Com. Reg. No.:	05-37708
Capital Investment / Paid-up Capital :	Rs.192.400 Millions
CIN No.: [Company Identification No.]	U29110HR2008PTC037708
TAN No.: [Tax Deduction & Collection Account No.]	RTKM05188B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Water and Oil Pumps used for Two and Four Wheeler Automobiles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 420000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a joint venture between Rico Auto Industries Limited (India) and Magna Powertrain AG (Austria). The company is having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	38, K. M. Stone, Delhi Jaipur Highway, Village Khandsa, C/o Rico Auto Industries Limited, Gurgaon-122001, Haryana, India
Tel. No.:	91-124-2875203/2875000 91-1274-277110
Fax No.:	91-124-2875100 91-1274-277212
E-Mail :	opaggarwal@ricoauto.com tarun.chhabra@magnarico.com mrpt@magnarico.com
Factory 1 :	69 KM Stone Delhi Jaipur Highway, Dharuhera, District Rewari, Gurgaon-122106, Haryana, India
Factory 2 :	Plot No. 11, Sector-8, Imt Manesar, Gurgaon, Haryana, India

DIRECTORS

As on 29.09.2010

Name :

Mr. Om Prakash Aggarwal

Designation :

Director

Address :

House No.761, Sector-14, Gurgaon-122001, Haryana, India

Date of Birth/Age :

08.01.1946

Date of Appointment :

14.03.2008

DIN No.:

01537211

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34200HR2007PLC037021	RICO JINFEI WHEELS LIMITED	Director	16-07-07	16-07-07	-	Active	NO
2	U29110HR2008PTC037708	MAGNA RICO POWERTRAIN PRIVATE LIMITED	Nominee director	14-03-08	14-03-08	-	Active	NO
3	U29253HR2007PLC036910	UTTARAKHAND AUTOMOTIVES LIMITED	Director	24-09-11	01-04-09	-	Active	NO
4	U74120HR2007PLC037192	RASA AUTOCOM LIMITED	Director	24-09-11	01-04-09	-	Active	NO
5	U35990HR2009PLC039865	KAPBROS ENGINEERING INDUSTRIES LIMITED	Director	30-09-10	07-01-10	-	Active	NO
6	U28112HR2010PLC039941	AAN ENGINEERING INDUSTRIES LIMITED	Director	09-07-11	14-01-10	-	Active	NO
7	U29130HR2010PLC039975	KRP AUTO INDUSTRIES LIMITED	Director	15-01-10	15-01-10	12-12-11	Active	NO

Name :

Mr. Vivek Kishan Hazari

Designation :

Director

Address :

D-910, New Friends Colony, New Delhi-110065, Delhi, India

Date of Birth/Age :

06.05.1965

Date of Appointment :

14.03.2008

DIN No.:

00694060

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1983PTC015771	CORE LEASE FINANCE PRIVATE LIMITED	Director	27-07-84	27-07-84	Active	NO
2	U51909DL1997PTC090130	ASCEND EXPORTS PRIVATE LIMITED	Director	10-10-97	10-10-97	Active	NO
3	U29110HR2008PTC037708	MAGNA RICO POWERTRAIN PRIVATE LIMITED	Nominee director	14-03-08	14-03-08	Active	NO
4	U74900HR2008PTC037519	CONTINENTAL RICO HYDRAULIC BRAKES INDIA PRIVATE LIMITED	Nominee director	29-09-11	29-09-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Sumit Kumar
Designation :	Secretary
Address :	H. No. 4043 G, Delhi Gate, Near Golchakkar Busting Station, Rewari-123401, Haryana, India
Date of Birth/Age :	10.10.1982
Date of Appointment :	12.09.2010
Pan No.:	AUYPK2860L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Magna Powertrain AG, Austria	11620000
Rico Auto Industries Limited, India	11620000
Total	23240000

As on 29.09.2010

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]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Water and Oil Pumps used for Two and Four Wheeler Automobiles.

Products :

Product Description	ITC Code
Water Pump Assy	3748
Oil Pump Assy	3748

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Water Pump	Nos.	1000000	450000	2560
Oil Pump	Nos.	1000000	--	--

GENERAL INFORMATION

Bankers :

Not Available

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Address :	Golf View Corporate, Tower B, Sector-42, Sector Road, Gurgaon-122002, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
Pan No.:	AABFS3421N
Related Parties:	· Rico Auto Industries Limited, India · Magna Powertrain Ag and Co Kg, Austria · Magna Powertrain Engineering Technology Group, Canada · Magna Automotive Technology and Service Company Limited, China · Magna Powertrain Changzhou Company Limited · Magna Powertrain Korea Inc., Korea · Magna International Japan Inc. · Magna Steyr India Private Limited

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23240000	Equity Shares	Rs.10/- each	Rs.232.400 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19240000	Equity Shares	Rs.10/- each	Rs.192.400 Millions

NOTE:

OF THE ABOVE

1. 9620000 shares are held by Magna Powertrain Ag, Austria

2. 9620000 shares are held by Rico Auto Industries Limited, India

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		192.400	92.400
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(86.141)	(43.134)
NETWORTH		106.259	49.266
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		106.259	49.266
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		60.925	21.696
Capital work-in-progress		3.770	31.726
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.313	0.000
	Sundry Debtors	14.302	0.000
	Cash & Bank Balances	20.522	23.550
	Other Current Assets	0.034	0.084
	Loans & Advances	11.991	11.452
Total Current Assets		56.162	35.086
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.823	32.195
	Other Current Liabilities	4.595	6.729
	Provisions	1.180	0.318
Total Current Liabilities		14.598	39.242
Net Current Assets		41.564	(4.156)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		106.259	49.266

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	15.472	3.400
		Other Income	1.938
		TOTAL	17.410	3.400
Less	EXPENSES
		Office Expenses
		Administrative Expenses	51.080	44.120
		Advertising Expenses
		TOTAL	51.080	44.120
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(33.670)	(40.720)
Less/ Add	DEPRECIATION/ AMORTISATION		8.770	2.110
	PROFIT BEFORE TAX		(42.440)	(42.830)
Less	TAX		0.220	0.300
	PROFIT AFTER TAX		(42.660)	(43.130)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.909	0.000
		Service Income	0.675	0.000
	TOTAL EARNINGS		6.584	0.000
	IMPORTS
		Raw Materials	1.858	0.000
		Components and Spare Parts	0.075	0.145
		Capital Goods	3.791	19.734
	TOTAL IMPORTS		5.724	19.879
	Earnings Per Share (Rs.)		(2.22)	(6.32)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	(245.03)	(1268.53)
Net Profit Margin (PBT/Sales)	(%)	(274.30)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(36.25)	(75.43)
Return on Investment (ROI) (PBT/Networth)		(0.40)	(0.87)
Debt Equity Ratio (Total Liability/Networth)		0.14	0.80
Current Ratio (Current Asset/Current Liability)		3.85	0.89

LOCAL AGENCY FURTHER INFORMATION

NATURE OF OPERATIONS:

Subject was incorporated on 14^th March 2008 for manufacture of water and oil pumps used for two and four wheeler automobiles. The company is joint venture between Rico Auto Industries Limited and Magna Powertrain Ag. The company registered office is based in Gurgaon, Haryana and has set up manufacturing facility at Dharuhera, Haryana.

PERFORMANCE:

The Company has won so far Four Water Pump program (SPIL 1.3 LSDE WP, Nissan XH2/XH5 WP, GM 1.3 LSD WP and Renault H41H5 WP and One Oil Pump program (GM 1.3 SD Oil pump). All the Programmed are in development phase as per the customer time plan. The company has successfully launched and started regular serial productions its first Water Pump program (SPIL 1.3 SDE WP) in the last month of the financial year 2009-10. The Company has also launched it second program, Nissan XH2/XH5 and regular supplies started from month of May 2010.

FUTURE OUTLOOK:

Today India is the fastest growing economy this means the automotive sector is also performing well; In view of this the directors expect the same trends will continue in the auto segment also for current financial year. the company is making continuous efforts to grow its booked business for the domestic and export market, launch nominated programs on time; the directors hope that the company would be able to generate and sustain financial viability.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Export obligation to be undertaken by the company under EPCG licenses.	2.638	1.914

FIXED ASSETS:

· Leasehold Improvements

· Furniture and Fixtures

· Office Equipments

· Computers

· Dies and Moulds

· Plant and Machinery

· Intangibles 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	Indian Rupees
US Dollar	1	Rs.52.78
UK Pound	1	Rs.82.73
Euro	1	Rs.68.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.