MIRA INFORM REPORT

Report Date :

28.01.2011

Note: Given Address could not be confirmed

IDENTIFICATION DETAILS

Name :	IAC INTERNATIONAL AUTOMOTIVE INDIA PRIVATE LIMITED
Registered Office :	Plot No.3, Rajiv Gandhi, Infotech Park, Phase 1, Hinjewadi, Pune-411 057, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.03.2008
Com. Reg. No.:	11-131589
CIN No.: [Company Identification No.]	U34300PN2008FTC131589
Legal Form :	Private limited liability company
Line of Business :	The Company is engaged in the design, development and manufacture of automotive interior systems for various automotive industry customers.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1200000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of IACNA Mauritius Limited. It is an established company having moderate 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 slow. The company can be considered for business dealings with some cautions.

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 Co- operative

LOCATIONS

Registered Office :	Plot No.3, Rajiv Gandhi, Infotech Park, Phase 1, Hinjewadi, Pune-411 057, Maharashtra, India
Tel. No.:	91-20-66538500/22934484
Fax No.:	91-20-66538777/22934234
E-Mail :	ajain01@iacna.com
Website :	www.iacna.com

DIRECTORS

As on 30.09.2010

Name :	Mr. James Kevin Kamsickas
Designation :	Director
Address :	44011, Cypress Point, Drive BNorthville, MI, USA-48168
Date of Birth/Age :	15.12.1966
Date of Appointment :	31.03.2008
Name :	Mr. Jeffrey Henery Vanneste
Designation :	Director
Address :	57863, Karam Navenue, Washington Township, MI, USA-48904
Date of Birth/Age :	03.09.1959
Date of Appointment :	31.03.2008
Name :	Mr. Janis Nikkoline Acosta
Designation :	Director
Address :	7676, Windgate Circle West, Bloom Field, MI, USA-48323
Date of Birth/Age :	26.09.1969
Date of Appointment :	31.03.2008
Name :	Mr. Christopher Thomas Dodge
Designation :	Director
Address :	361, Bauman Avenue, Clawson, Mi, USA-48017
Date of Birth/Age :	29.08.1971
Date of Appointment :	13.09.2008
Name :	Mr. Kehoe Allen Kehoe
Designation :	Director
Address :	5153, Cedar Creek Drive, Brownstown, MI, USa-481 34
Date of Birth/Age :	30.10.1973
Date of Appointment :	03.09.2009
Name :	Mr. Gajanan Vithal Gandhe
Designation :	Director
Address :	703/704, Wellington Coop Housing Society, Hiranandani Estate, Thane (West)-400 607, Maharashtra, India
Date of Birth/Age :	01.03.1864
Date of Appointment :	31.03.2008

KEY EXECUTIVES

Name :	Mr. Ashish Kumar jain
Designation :	Company Secretary
Address :	13, Ankit Residency, Pavna Nagar, Chinchawad, Pune-411 033, Maharashtra, Idnia
Date of Birth/Age :	14.05.1978
Date of Appointment :	14.05.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders (Equity Shares)	No. of Shares
Iacna Mauritius Limited, Mauritius	21314594
IAC Us holding Inc, USA	01
Total	21314595

Names of Shareholders (Preference Shares)	No. of Shares
Iacna Mauritius Limited, Mauritius	21900001
Total	21900001

As on 30.09.2010

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]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the design, development and manufacture of automotive interior systems for various automotive industry customers.

Products :

Item Code No. (ITC Code)	8708.99
Product Description	Automotive Interior Components

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Glove Box Compartment	Nos.	13200	1400
Instrument Panel	Nos.	3000	21

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

State Bank of India, Industrial Finance Branch, Tara Chambers, Mumbai-Pune Road, Pune - 411003, Maharashtra, India

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From Other than banks (The above loan is secured against the future purchase of certain movable equipments and is repayable by 31December 2016)	60.000	0.000
Total	60.000	0.000

Banking Relations :
Auditors :
Name :	Bsr and Company Chartered Accountants
Address :	703, 7^th Floor, Godrej Castle Maine, Next To Ruby Hall Clinic, Bund Garden Road, Pune-411 001, Maharashtra, India
Tel. No.:	91-20-30585764/65
Fax No.:	91-20-30585775
Holding Company:	IACNA Mauritius Limited
Ultimate Holding Company:	International Automotive Components Group North America, LLC
Associates/Subsidiaries :	Shanghai IAC Automotive Components Company Limited IAC U.S. Holdings, Inc.

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30500000	Equity Shares	Rs.10/- Each	Rs.305.000 millions
30500000	Preference Shares	Rs.10/- Each	Rs.305.000 millions
	Total		Rs.610.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21314595	Equity Shares	Rs.10/- Each	Rs.213.146 millions
21900001	Preference Shares	Rs.10/- Each	Rs.219.000 millions
	Total		Rs.432.146 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30500000	Equity Shares	Rs.10/- Each	Rs.305.000 millions
30500000	Preference Shares	Rs.10/- Each	Rs.305.000 millions
	Total		Rs.610.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21314595	Equity Shares	Rs.10/- Each	Rs.213.146 millions
17318001	Preference Shares	Rs.10/- Each	Rs.173.180 millions
	Total		Rs.386.326 Millions

Notes:

Of the above, 22,314,595 equity shares (31 March 2009 - 21,314,595 equity shares) of Rs.10/- each are held by IACNA Mauritius Limited, the holding company, together with its nominee, JAC U.S. Holdings Inc. The ultimate holding company is International Automotive Components Group North America, LLC

17318001 preference shares of Rs.10/- each fully paid (31 March 2009 - 11,532,174 preference shares of Rs.10/- each fully paid)

1) Of the above, 17,318,001 preference shares (31 March 2009 - 11,532,174 preference shares) of Rs.10/- each are held by IACNA Mauritius Limited.

2) Of the above preference shares, 11,532,174 preference shares of Rs.10/- each fully paid are Compulsory Convertible Preference Shares (CCPS) carrying dividend @16.75% on non cumulative basis and 5,785,827 preference shares of Rs.10/- each fully paid are CCPS carrying dividend @ 14.75% on non cumulative basis.

3) At the call option of the Company, CCPS would be converted into equity shares within a period of 5 years from the date of allotment, the date of allotment being 13 September 2008 for 11,532,174 preference shares and 15 October 2009 for 5,785.827 preference shares. CCPS would be converted into equity shares at a price not less than the base price determined in terms of FEMA Regulations and the Companies Act, 1956.

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		386.326	328.468
2] Share Application Money		45.820	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(130.980)	(110.803)
NETWORTH		301.166	217.665
LOAN FUNDS
1] Secured Loans		60.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		60.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		361.166	217.665
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		245.900	236.794
Capital work-in-progress		12.250	0.195
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.729	0.000
	Sundry Debtors	9.555	18.956
	Cash & Bank Balances	121.561	28.513
	Other Current Assets	15.483	0.913
	Loans & Advances	59.775	23.642
Total Current Assets		207.103	72.024
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.579	11.764
	Other Current Liabilities	23.748	26.701
	Provisions	34.760	52.883
Total Current Liabilities		104.087	91.348
Net Current Assets		103.016	(19.324)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		361.166	217.665

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	221.557	141.568
		Other Income	3.015	2.852
		TOTAL (A)	224.572	144.420
Less	EXPENSES
		Material cost	2.777	0.000
		Cost of tool Development	82.086	96.689
		Employee costs	84.623	48.889
		Operating and Other Expense	66.569	106.290
		TOTAL (B)	236.055	251.868
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(11.483)	(107.448)
Less	FINANCIAL EXPENSES (D)		1.717	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(13.200)	(107.448)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.977	2.786
	PROFIT BEFORE TAX (E-F) (G)		(20.177)	(110.234)
Less	TAX (H)		0.000	0.569
	PROFIT AFTER TAX (G-H) (I)		(20.177)	(110.803)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(110.803)	0.000
	BALANCE CARRIED TO THE B/S		(130.980)	(110.803)
	EARNINGS IN FOREIGN CURRENCY		80.453	26.841
	IMPORTS
		Raw Materials	0.760	0.000
		Capital Goods	1.302	11.448
	TOTAL IMPORTS		2.062	11.448
	Earnings Per Share (Rs.)		2.25	(11.81)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	(8.98)	(76.72)
Net Profit Margin (PBT/Sales)	(%)	(9.11)	(78.27)
Return on Total Assets (PBT/Total Assets}	(%)	(4.45)	(35.70)
Return on Investment (ROI) (PBT/Networth)		(0.07)	(0.51)
Debt Equity Ratio (Total Liability/Networth)		0.54	0.42
Current Ratio (Current Asset/Current Liability)		1.99	0.79

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors for Goods and Services
Dues to micro and Small Enterprises	-	-
Dues to others	45.579	11.764

Background of the Company

L4C International Automotive India Private Limited ('IAC India' or 'the Company') was incorporated in India as a private limited company on 11 March 2008. The entire share capital of LAC India is held by IACNA Mauritius Limited, Mauritius (formerly known as "International Vehicle Components Mauritius Limited"), together with its nominee, MC U.S.Holdings, Inc., USA. The ultimate holding Company is International Automotive Components Group North America LEC, USA.

The Company is engaged in the design, development and manufacture of automotive interior systems for various automotive industry customers and has one corporate office, one manufacturing facility and an engineering centre.

OPERATIONS:

This year was the second year of operation of the Company. During the year the Company has successfully set up an Interim Facility in Chakan (Interim Manufacturing Facility) to cater to the Prototype Builds requirements during the development Stage of the Mahindra and Volkswagen programs.

Further the Company has received a soft loan of Rs.60.000 millions (USD 1.35M) from Mahindra Vehicle Manufacturing Limited (MVML) to purchase machinery and equipments for the W201 program to launch in February 2010. The MVML program consists of supplying automotive interiors such as Instrument Panel and Exterior Parts, Floor Consol. Rear and Front Door Trims, B. C and D Pillar Terms. Tall Gate and Glove Box Assembly for the W201 program. MVML is also providing a manufacturing facility on lease in its supplier park in Chakan.

FUTURE BUSINESS PROSPECTS

Though the Company is just two years old, a significant interest is being shown in it by the Indian domestic passenger car and heavy truck manufacturers.

The Company has been approached by the Indian domestic passenger car and truck manufacturers with requests for quotation for their upcorning future programs The Company: has received Engineering business from M/s Ashok Leyland among others.

The Indian automobile market has shown a significant growth in recent years and all major OEM's is corning here to take advantage of it. The Company will definitely benefit in the areas of both engineering and manufacturing.

Bankers Charges Report as per Registry

Corporate identity number of the company	U34300PN2008FTC131589
Name of the company	IAC International Automotive India Private Limited
Address of the registered office or of the principal place of business in India of the company	Plot No.3, Rajiv Gandhi, Infotech Park, Phase 1, Hinjewadi, Pune-411 057, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Immovable Property Others All Current Assets
Particular of charge holder	State Bank of India, Industrial Finance Branch, Tara Chambers, Mumbai-Pune Road, Pune - 411003, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	1.Agreement of Loan for Overall Limit( Form C.1) 2.Agreement of Hypothecation of Goods and Assets(Form C.2) 3.Letter Regarding the Grant of Individual Limits within the Overall Limit (C.5) 4.Memorandum of Deposit for Creation of Charge for Term Loan/Overall Limits (All these documents create a single charge).
Date of instrument Creating the charge	25.09.2010
Amount secured by the charge	Rs.350.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest For TL: @ 5.50% above Base Rate (Effective Rate 13.00% p.a.) with annual reset. CC: @ 5.00% above Base Rate (Effective Rate 12.50% p.a.) LC and BG: At Standard Rates of Bank. Terms of Repayment As per the Agreement. Margin For Cash Credit:- Raw Materials: 25% Finished Goods: 25% Receivables: 25% For Term Loan: 34.29% For Letter of Credit and Bank Guarantee: 10% Extent and Operation of the charge Type of Facilities: Cash Credit of Rs.70.000 millions, Term Loan of Rs.260.000 millions. and Letter of Credit (Full interchangeability between LC and BG Limits) of Rs. 20.000 millions. and Bank Guarantee-within overall NFB Facility (Full interchangeability between LC and BG Limits) of Rs.(20.000) millions. Total Credit Limit of Rs.350.000 millions. First Charge on entire Current Assets, Immovable property of Co. situate at Mauje Mahalunge, Khed and over all existing movable assets of Co.(Excl. those exclusively charged to M and M for their Soft Loan). Others All other terms and conditions are as per the agreement.
Short particulars of the property charged	First Charge over all the Current Assets of the Company and over all the existing Movable Assets of the Company (Excl. those exclusively charged to MandM for their Soft Loan). Charge over all Immovable of Company viz. Equitable/Registered Mortgage of Freehold indl. land - 1. All that piece and parcel of Land situate at Gat No 132 Admeasuring about 0.90 H (earlier S No 65, H No 1) 2. All that piece and parcel of Land situate at Gat No 134/1 admeasuring about 0.27 H 3. All that piece and parcel of Land situate at Gat No 134/2 Admeasuring about 0.60 H 4. All that piece and parcel of Land situate at Gat No 134/2 Admeasuring about 0.80 H (earlier S No 65, H No 2A and S No 1A) 5. All that piece and parcel of Land situate at Gat No 140/2 Admeasuring 2.52 H (earlier S No 66, H No 1) situate at Vill Mahalunge, Tal Khed, Dist Pune together with Building and Structures sponsoring thereon or which may be erected thereon during the currency of loan, in Taluka Khed, Dist. Pune adm.5.09 Hectares .First Charge on all the assets acquired out of Bank finance.

Fixed Assets:

· Land – Freehold

· Leasehold Improvement

· Plant and Machinery

· Office Equipments

· Computer

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.45.57
UK Pound	1	Rs.72.50
Euro	1	Rs.62.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.