MIRA INFORM REPORT

Report Date :

21.02.2011

IDENTIFICATION DETAILS

Name :	VOLKSWAGEN GROUP SALES INDIA PRIVATE LIMITED AUDI INDIA (DIVISON OF VOLKSWAGEN GROUP SALES INDIA PRIVATE LIMITED)
Registered Office :	3, North Avenue, Level 3/4, Maker Maxity, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.03.2007
Com. Reg. No.:	11-168439
CIN No.: [Company Identification No.]	U50401MH2007FTC168439
TAN No.: [Tax Deduction & Collection Account No.]	MUMV14548C
PAN No.: [Permanent Account No.]	AACCV4413F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of high-quality and  innovative luxury cars.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 4621000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments inview of strong holding. 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION DECLINED BY

Management non- corporative [ Name not disclosed ]

LOCATIONS

Registered Office :	3, North Avenue, Level 3/4, Maker Maxity, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-40547200/ 40547205
Fax No.:	91-22-40547201
E-Mail :	vijay.kamath@volkswagen.co.in
Website :	www.audi.in www.audi.co.in
Corporate Sales Office :	Located at: Ahmedabad Bangalore Chandigarh Chennai Delhi Gurgaon Hyderabad Kochi Kolkata Ludhiana Mumbai Pune

DIRECTORS

As on : 30.09.2010

Name :	Mr. Benoit Tiers
Designation :	Managing Director
Address :	Satguru Sharan, 24/ 29, Road Bandra West, Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	09.02.1970
Date of Appointment :	07.03.2007
Name :	Mr. Gert Maximinian Bergmann
Designation :	Whole Time Director
Address :	Frankasse 1/ 5, Wien, Austria 38518
Date of Birth/Age :	23.03.1964
Date of Appointment :	30.06.2009
Name :	Mr. Neeraj Ved Prakash Garg
Designation :	Director
Address :	P – 496, Sector 21, Jalvayu Vihar, Noida – 201 301, Uttar Pradesh, India
Date of Birth/Age :	01.09.1960
Date of Appointment :	25.09.2009
Name :	Mr. Maik Klaus Stephan
Designation :	Managing Director
Address :	4^th Floor, Sea Wind, Oberoi Enclave, Juhu, Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	16.01.1968
Date of Appointment :	31.07.2009

KEY EXECUTIVES

Name :	Mr. Vijay Somnath Kamath
Designation :	Secretary
Address :	Room No.1, Dubhash Building, Gokhale Road, Dadar, Mumbai – 400 028, Maharashtra, India
Date of Birth/Age :	04.07.1976
Date of Appointment :	01.07.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 30.09.2010

Names of Shareholders (Equity Shares)	No. of Shares
Volkswagen International Finance N.V., Netherlands	18419737
Volkswagen A.G., Germany	1
Total	18419738

Names of Shareholders (Preference Shares)	No. of Shares
Volkswagen International A.G., Germany	185804330
Total	185804330

As on : 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Bodies corporate	0.00
Directors or relatives of Directors	0.00
Other top fifty shareholders	0.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of high-quality and  innovative luxury cars.

Products :

Item Code No. (ITC Code)	87.03
Product Description	Motor Car

GENERAL INFORMATION

No. of Employees :

Not Divulged By the Management.

Bankers :

Not Available

Facilities :

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Short Term Loans from Banks
- Working Capital Loan from Bank (Repayable on Demand)	35.296	1002.189
- Short Term Loan from Bank	--	150.000
Total	35.296	1152.189

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	252, Swatantryaveer Savarkar, Rashtriya Smarak, Next to Mayor’s Bunglow, Shivali Park, Dadar, Mumbai – 400028, Maharahtra, India
Ultimate Holding Company :	Porsche Automobile Holding SE
Intermediate Holding Company :	Volkswagen AG, Germany
Holding Company :	Volkswagen International Finance N.V.
Fellow Subsidiaries :	Skoda Auto India Private Limited Volkswagen Finance Private Limited Audi AG Volkswagen Immobillen Volkswagen Audi Espana, SA Skoda Auto A S Audi Quatlro GMBH Audi Akademie GMBH Volkswagen Do Brazil Limited Audi Volkswagen Middle East FZE Volkswagen Financial ServicesAG Volkswagen (China) Investment Company Limited Volkswagen Group United Kingdom Limited Volkswagen Coaching GMBH Volkswagen Group Singapore PTE Limited Bentley Motors limited, United Kingdom Volkswagen de Mexico, SA de C.V Volkswagen India Private limited

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
18419738	Equity Shares	Rs.10/- each	Rs.184.197 millions
185804330	Non Cumulative, Non Convertible, Redeemable Preference Shares	Rs.10/- each	Rs.1858.043 millions
	Total		Rs.2042.241 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18419738	Equity Shares (Of the above 18419737 equity shares are held by Volkswagen International Finance N.V., the holding company and one Equity Shares is held by Volkswagen AG. Porsche Automobile Holding SE is the ultimate holding company)	Rs.10/- each	Rs.184.197 millions
185804330	Non Cumulative, Non Convertible, Redeemable Preference Shares (Preference shares are held by Volkswagen AG, these shares carry a preferential right to a fixed rate of dividend which shall be determined mutually by the Company and the preference shareholders in accordance with the Articles of Association and will be redeemed at par at any time before the expiry of twenty years from the date of allotment.)	Rs.10/- each	Rs.1858.043 millions
	Total		Rs.2042.241 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2042.240	2042.241	2042.241
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(886.904)	(1789.423)	(639.753)
NETWORTH		1155.336	252.818	1402.488
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		35.296	1152.189	0.000
TOTAL BORROWING		35.296	1152.189	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1190.632	1405.007	1402.488
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		632.640	428.511	128.415
Capital work-in-progress		26.055	31.229	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	523.703	418.619	274.252
	Sundry Debtors	1416.625	80.364	708.028
	Cash & Bank Balances	1488.166	232.369	47.135
	Other Current Assets	5.349	0.023	5.310
	Loans & Advances	1227.243	1612.697	861.827
Total Current Assets		4661.086	2344.072	1896.552
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	47.633	452.745	58.831
	Sundry Creditors	3715.455	869.146	526.143
	Provisions	366.061	76.914	37.505
Total Current Liabilities		4129.149	1398.805	622.479
Net Current Assets		531.937	945.267	1274.073
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1190.632	1405.007	1402.488

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	12739.993	7550.812	1451.390
		Other Income	613.482	211.412	65.560
		TOTAL (A)	13353.475	7762.224	1516.950
Less	EXPENSES
		Cost of Traded Goods	10093.734	6726.559
		Personnel Cost	456.330	384.483	2130.310
		Administrative And Other Expenses	949.414	826.559
		Selling and Distribution Expenses	498.177	743.123
		TOTAL (B)	11997.655	8680.724	2130.310
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1355.820	(918.500)	(613.360)
Less	FINANCIAL EXPENSES (D)		22.290	116.840	8.520
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1333.530	(1035.340)	(621.880)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		226.814	100.590	12.370
	PROFIT BEFORE TAX (E-F) (G)		1106.716	(1135.930)	(634.250)
Less	TAX (I)		204.198	13.740	5.500
	PROFIT AFTER TAX (G-I) (J)		902.518	(1149.670)	(639.750)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1789.423)	(639.752)	NA
	BALANCE CARRIED TO THE B/S		(886.904)	(1769.423)	NA
	EARNINGS IN FOREIGN CURRENCY
		Management Services	NA	46.473	--
		Commission Earnings	NA	1.641	--
	TOTAL EARNINGS		NA	48.114	--
	IMPORTS
		Motor Cars	NA	1280.025	444.851
		Capital Goods	NA	97.033	29.505
	TOTAL IMPORTS		NA	1377.058	474.356
	Earnings Per Share (Rs.)		49.00	(62.42)	(51.98)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.75	(14.81)	(42.17)
Net Profit Margin (PBT/Sales)	(%)	8.68	(15.04)	(43.70)
Return on Total Assets (PBT/Total Assets}	(%)	21.30	(40.97)	(31.32)
Return on Investment (ROI) (PBT/Networth)		0.95	(4.49)	(0.45)
Debt Equity Ratio (Total Liability/Networth)		4.06	10.09	0.44
Current Ratio (Current Asset/Current Liability)		1.12	1.68	3.05

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Due to Micro Small Enterprises	--	--	--
Due of Creditors Other Than Micro and small enterprises	3715.455	869.146	526.143
Total	3715.455	869.146	526.143

Note:

The situation of the registered office of the company was changed from Vakils House, 18, Sprott Road, Ballard Estate, Mumbai – 400 001, Maharashtra to the present address w.e.f. 15.09.2008.

OPERATIONS:

During the year, the Company has made a net Profit of Rs.902.520 millions after tax.

MARKET/ BUSINESS OVERVIEW:

During the year ended March 31, 2010, the Company has sold 6023 cars of Volkswagen Passenger cars and Audi as a result of which the Company could achieve sales of Rs.12739.990 million. The Company is optimistic of achieving higher sales figures in the forthcoming year.

FIXED ASSETS:

• Computers
• Office Equipments
• Furniture and Fixtures
• Leasehold Improvements
• Vehicles
• Computer Software

WEBSITE DETAILS:

PROFILE:

As a manufacturer of high-quality and  innovative luxury cars, Audi is one of the world’s leading premium brands and is among the most admired on the world market. The basis of its success comprises pioneering concepts in the domains of advanced technology and design.

Audi is represented in 110 countries  worldwide and since 2004, Audi has been selling its products on the Indian market.

In March 2007, Audi set up its own sales company for India. By establishing Audi India as a Division of Volkswagen Group Sales India Private Limited in Mumbai, Audi is making a clear long-term statement in the country with ambitious growths plans. Audi’s goal is to become the leading automobile luxury brand in the Indian market in the next few years.

The Audi India strategy encompasses significant investments in branding, marketing, exclusive dealerships and after sales service for the upcoming years.

At present, Audi is assembling the Audi A6 and the Audi A4 for the Indian market in Aurangabad.

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. 45.18
UK Pound	1	Rs. 73.04
Euro	1	Rs. 61.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.