MIRA INFORM REPORT

Report Date :

22.01.2011

IDENTIFICATION DETAILS

Name :	SIGMA VIBRACOUSTIC (INDIA) PRIVATE LIMITED
Registered Office :	R-561, Shanker Road, New Rajinder Nagar, New Delhi-110060, Delhi
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	08.10.1997
Com. Reg. No.:	090067
CIN No.: [Company Identification No.]	U34300DL1997PTC090067
TAN No.: [Tax Deduction & Collection Account No.]	DELS25168D DELS24298B DELS21380C
PAN No.: [Permanent Account No.]	AABCS7623P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Auto Components.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1928656
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a joint venture between Sigma Corporation, India and Phoenix AG, Germany. It is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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 PARTED BY

Name :	Mr. Pradeep
Designation :	Accounts
Date :	20.01.2011

LOCATIONS

Registered Office :	R-561, Shanker Road, New Rajinder Nagar, New Delhi-110060, Delhi, India
Tel. No. :	91-11-28745134
Fax No. :	91-11-28745140
E-Mail :	Pradeep.chauhan@svilindia.com sigma@sigmacorporation.com
Area :	4000 Sq. ft.
Location :	Owned
Factory 1 :	A-30, Caj Industrial area, Phase VII, Sector-73, Mohali-160055, Punjab, India
Tel. No.:	91-172-2236311
Fax No.:	91-172-2236316

DIRECTORS

As On : 29.09.2009

Name :	Mr. Jagdip Singh
Designation :	Chairman cum Director
Address :	A-9/13C, Vasant Vihar, New Delhi-110057, Delhi, India
Date of Birth/Age :	05.11.1944
Date of Appointment :	08.10.1997
Name :	Mr. Taranjit Singh
Designation :	Director
Address :	A-9/13C, Vasant Vihar, New Delhi-110057, Delhi, India
Date of Birth/Age :	13.04.1947
Date of Appointment :	08.10.1997
Name :	Mr. Kabir Singh
Designation :	Managing Director
Address :	A-9/13C, Vasant Vihar, New Delhi-110057, Delhi, India
Date of Birth/Age :	16.09.1974
Date of Appointment :	10.07.1998
Name :	Mr. Hans Juergen Goslar
Designation :	Director
Address :	Bartholomaeus Arnoldi Strabe 124 61250 Usengen, germany-61250
Date of Birth/Age :	28.11.1950
Date of Appointment :	23.09.2008
Name :	Mr. Norbert Georg Schebesta
Designation :	Director
Address :	Nibelungenstr. 10, Rimbach, Germany-64668
Date of Birth/Age :	05.09.1949
Date of Appointment :	01.10.2003
Name :	Axel Herald Wersel
Designation :	Director
Address :	Osterfeld 5, Glinde, Germany-21509
Date of Birth/Age :	17.02.1968
Date of Appointment :	30.10.2006
Name :	Mr. Martin Valentin Schuler
Designation :	Director
Address :	313, Ground Floor, Sector 9D, Chandigarh-160009, India
Date of Birth/Age :	13.11.1962
Date of Appointment :	27.08.2009

KEY EXECUTIVES

Name :	Mr. Pradeep
Designation :	Accounts
Name :	Mr. Pradeep Kumar Chauhan
Designation :	Secretary
Address :	1223, Pushpac Complex, Sector 49B, Chandigarh-160047, India
Date of Birth/Age :	01.02.1969
Date of Appointment :	05.02.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2009

Names of Shareholders	No. of Shares
Sigma Corporation (India) Ltd, India	320000
Mr. Jagdip Singh	40000
Mr. Taranjit Singh	40000
Vibracoustic Asia Holding Gmbh, Germany	4565000
Sigma Industries Limited, India	4165000
Total	9130000

As On 29.09.2009

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	50.00
Bodies corporate	49.00
Directors or relatives of Directors	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Auto Components.
Exports :
Products :	Auto Components
Countries :	China, Canada, Korea, Turkey
Imports :
Products :	Rubber, Chemical, Metal Parts
Countries :	China, Thailand, UK, Germany
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	L/C, Cash, Credit

GENERAL INFORMATION

Customers :

OEM’s, Corporates

No. of Employees :

50 (Approximately)

Bankers :

• Canara Bank, SCO 117-118, Sector 17C, Chandigarh-160017, India
• Citi Bank, Jeevan Vihar Branch, 3 Sansad Marg, New Delhi-110001, Delhi, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Canara Bank, Chandigarh CC0000112	48.505	14.536
Canara Bank Chandigarh-FDB	5.698	24.591
Canara Bank, Chandigarh Packing Credit	78.877	41.768
Citi Babk, Chandigarh-PCFC	0.000	54.857
Citi Bank, Bill Discounting	0.000	13.541
Term Loan	27.500	50.000
Interest on Term Loan Payable	0.334	0.498
Total	160.914	199.791

Notes :

First Charge on Stocks, Receivables and all fixed assets to be purchased out of term loans.

Mortgage of company’s Land And Building at D-126, Phase 7, Industrial Area, Mohali, Punjab.

Banking Relations :	--
Auditors :
Name :	B S Sawhney And Associates Chartered Accountant
Address :	F-249 (G.F.), New Rajinder Nagar, New Delhi-110060, Delhi, India
Associates/Joint Ventures:	Freudenberg Analgen-UND-Werrkzeugtechnik KG, Germany Freudenberg Dichtungs – UND Freudenberg Forschungsdienste Freudenberg Versicherungsservice GmBH Sigma Corporation India Limited. Sigma Freudenberg NOK Private Limited Sigma Moulds And Stampings Private Limited Vibracoustic Gmbh And Co. Kg Vibracoustic GmBH And CO.KG , Weinheim Vibracoustic Shanghai Sales And Trading Co Limited Vibracoustic Hungary Limited Vibracoustic North America Vibracoustic Polska Sp Zoo Right Guard Rubber Private Limited Freudenberg IT – Consulting KG

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9130000	Equity Shares	Rs.10/- each	Rs.91.300 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		91.300	91.300	91.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		390.864	306.478	224.388
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		482.164	397.778	315.688
LOAN FUNDS
1] Secured Loans		160.913	199.792	132.839
2] Unsecured Loans		0.000	0.000	12.837
TOTAL BORROWING		160.913	199.792	145.676
DEFERRED TAX LIABILITIES		38.123	33.131	28.175
TOTAL		681.200	630.701	489.539
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		419.489	381.494	302.370
Capital work-in-progress		7.004	0.000	1.227
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	109.816	87.379	71.099
	Sundry Debtors	162.435	166.358	147.043
	Cash & Bank Balances	26.862	12.685	19.600
	Other Current Assets	0.873	0.112	0.554
	Loans & Advances	245.228	278.935	203.630
Total Current Assets		545.214	545.469	441.926
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.410	119.941	112.130
	Other Current Liabilities	36.388	37.670	46.350
	Provisions	182.709	137.651	97.511
Total Current Liabilities		290.507	295.262	255.991
Net Current Assets		254.707	250.207	185.935
MISCELLANEOUS EXPENSES		0.000	0.000	0.007
TOTAL		681.200	631.701	489.539

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Sale	906.510	829.630	705.040
		Other Income	37.340	64.990	38.970
		TOTAL	943.850	894.620	744.010
Less	EXPENSES
		TOTAL	775.820	727.710	602.320
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		168.030	166.910	141.690
Less/ Add	DEPRECIATION/ AMORTISATION		49.880	41.250	28.760
	PROFIT BEFORE TAX		118.150	125.670	112.920
Less	TAX		47.150	43.580	39.610
	PROFIT AFTER TAX		71.000	82.090	73.310
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	677.891	649.692	494.586
		Commission Earnings	3.198	3.846	0.000
	TOTAL EARNINGS		681.089	653.538	494.586
	IMPORTS
		Raw Materials	50.600	41.257	27.341
		Capital Goods	37.187	53.287	0.544
	TOTAL IMPORTS		87.787	94.544	27.885
	Earnings Per Share (Rs.)		7.78	--	--

Particulars	31.03.2010
Sales Turnover (Approximately)	1327.000

Expected Sales (2010-2011): Rs.1560.000 Millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	7.52	9.17	9.85
Net Profit Margin (PBT/Sales)	(%)	13.03	15.14	16.01
Return on Total Assets (PBT/Total Assets}	(%)	12.24	13.55	15.17
Return on Investment (ROI) (PBT/Networth)		0.24	0.31	0.35
Debt Equity Ratio (Total Liability/Networth)		0.93	1.24	1.27
Current Ratio (Current Asset/Current Liability)		1.87	1.84	1.72

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

(Rs. In Millions)

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors	71.410	119.941	112.130

Trade References:

• Tata Motors
• Mahindra And Mahindra

Form 8:

This form is for	Modification of charge
Charge identification number of the modified	10098589
Corporate identity number of the company	U34300DL1997PTC090067
Name of the company	Sigma Vibracoustic (India) Private Limited
Address of the registered office or of the principal place of business in India of the company	R-561,Shanker Road, New Rajinder Nagar, New Delhi-110060, Delhi, India
Type of charge	Book Debts Stocks
Particular of charge holder	Canara Bank, S.C.O. - 117-118, Sectior-17 C, Chandigarh-160017, India
Nature of description of the instrument creating or modifying the charge	Bank's Letter Dt.18.12.2010
Date of instrument Creating the charge	18.12.2010
Amount secured by the charge	Rs.145.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As governed by the Bank's Sanction Letter Terms of Repayment Working Capital Loans payable on demand Margin Funds Based Limits -25% Extent and Operation of the charge First pari-passu charge on all present and future stocks and books debts Others NIL
Short particulars of the property charged	Stocks and Book Debts of the Company at all locations

Fixed Assets:

• Land Freehold
• Building
• Plant And Machinery
• Furniture And Fixture
• Office Equipment
• Vehicles
• Technical Know How

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.45.70
UK Pound	1	Rs.72.78
Euro	1	Rs.61.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
TOTAL		48

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.