MIRA INFORM REPORT

Report Date :

10.03.2010

Note : The Correct Name of the Company is ELRINGKLINGER AUTOMOTIVE COMPONENTS (INDIA) PRIVATE LIMITED

IDENTIFICATION DETAILS

Name :	ELRINGKLINGER AUTOMOTIVE COMPONENTS (INDIA) PRIVATE LIMITED
Registered Office :	Readymoney Mension, 43, Veer Nariman Road, Mumbai-400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.02.2007
Com. Reg. No.:	11-168152
CIN No.: [Company Identification No.]	U28999MH2007FTC168152
TAN No.: [Tax Deduction & Collection Account No.]	MUME06917B
PAN No.: [Permanent Account No.]	AABCE7188D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automotive Components.

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 820000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of EringKlinger AG, Germany. It is a company having moderate track. Profitability of the company appears to be under pressure. There appears some accumularted 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 – 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. Ajit Gokhle
Designation :	Finance Manager
Contact No.:	91-9764007935
Date :	09.03.2011

LOCATIONS

Registered Office :	Readymoney Mension, 43, Veer Nariman Road, Mumbai-400001, Maharashtra, India
Mobile No.:	91-9764007935 (Mr. Ajit Gokhale)
E-Mail :	Ajit.gokhale@elrignklinger.in Stefan.wolf@elringklinger.de infor@elringkliner.de
Website :	http://www.elringlinger.in
Area :	Rented
Corporate Office :	Plat No. G 2, Ranjangaon, Industrial Area, Taluka Shirur, District Pune-412220, Maharashtra, India
Tel. No.:	91-2138-671700
Fax No. :	91-2138-671701
Area :	6 acres (Owned)

DIRECTORS

As on 30.09.2009

Name :	Mr. Stefan Franz Watterwalf
Designation :	Director
Address :	Bergster 61, D-70771, Leinfelden-Echterdingen, Germany
Date of Birth/Age :	12.09.1961
Date of Appointment :	26.02.2007
Name :	Mr. Theo Ernst Becker
Designation :	Director
Address :	Unitegrasse 20, Idstein-Walsdorf, Germany
Date of Birth/Age :	22.12.1959
Date of Appointment :	26.02.2007
Name :	Mr. Jurgen Weingartner
Designation :	Managing Director
Address :	Elring Llinger Automotive Components, I PL PL # 2, MIDC, Ranjangaon Industrial Area, Taluka Shiruk, District Pune-412200, Maharashtra, India
Date of Birth/Age :	12.10.1967
Date of Appointment :	26.02.2007
Date of Ceasing:	01.04.2009
Name :	Mr. Suresh Rasiklal Vasani
Designation :	Director
Address :	302, Rameshwar Neelkantha Valley, 7^th Road, Rajawadi Ghatkopar, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	10.07.1961
Date of Appointment :	01.04.2007
Name :	Mr. Frank Christof Schaible
Designation :	Managing Director
Address :	Flat No. 201, Wing – 2, Lane No. 8, Wellington Mews, 352, Koregaon Park, Pune – 411011, Maharashtra, India
Date of Birth/Age :	04.04.1975
Date of Appointment :	01.04.2009

KEY EXECUTIVES

Name :	Mr. Ajit Gokhale
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2009

Names of Shareholders	No. of Shares
Elringkliger AG, Germany	39058013
Theo Becker on Behal of Elringkliger AG, Germany	1
Total	39058014

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2009

Category	Percentage of Holding
Foreign Holdings	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automotive Components.

Products :

ITC Code No.	Product Description
84099900	Cylinder Head Gasket

Imports :

Products :

Raw material

Countries :

Europe

Terms :

Selling :

Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2008)

Particulars	Unit	Installed Capacity	Actual Production
Cylinder Head Gaskets	Nos.	2000000	2050
Specialty Gaskets	Nos.	8000000	--
Head Shield	Nos.	500000	--
Rubber Moulded Gaskets	Nos.	300000	--

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

110 (In Office -30, In Factory- 80) Approximately

Bankers :

HSBC Bank, Pune, Maharashtra, India

Facilities :

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
External Commercial borrowing from holding company	123.080	0.000
Total	123.080	0.000

Note:

Loan from holding company represent commercial borrowing (ECB) of Euro 2 Millions from ElringKlinger AG, the holding company. The loan will be repaid after three years from the date of drawn down (16 September 2009). Interest rate is 5.75% p.a. for the complete term of the loan. The interest is payable on or before 31^st December each year.

Banking Relations :	-
Financial Institutions:	Volkswagen India Private Limited, E -1, Midc Industrial Area Phase III, Village Nigoje Mhalunge Kharabwadi Chakan Tal Khed, Pune-410 501, Maharashtra, India
Auditors :
Name :	BSR and Company Chartered Accountant
Address :	703, 7th Floor, Godrej Castelmaine, Bundgarden Road, Pune-411 001, Maharashtra, India
Holding Company:	Elring Klinger AG, Germany

CAPITAL STRUCTURE

As on 30.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39058014	Equity Shares	Rs.10/- each	Rs.390.580 Millions

Note:

Of the above:

39058014 Equity Shares of Rs.10 /- each are held by ElringKlinger AG (“the Holding Company”) and the balance each are held by jointly by ElringKinsher AG and Mr. Theo Becher. Of the above 1950505 shares have been issued without consideration being received in cash.

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		390.580	390.580	200.000
2] Share Application Money		0.000	0.000	56.940
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(184.965)	(149.331)	(26.633)
NETWORTH		205.615	241.249	230.307
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		123.080	0.000	0.000
TOTAL BORROWING		123.080	0.000	0.000
DEFERRED TAX LIABILITIES		0.789	0.000	0.000
TOTAL		329.484	241.249	230.307
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		373.735	374.406	175.548
Capital work-in-progress		9.051	7.149	70.938
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	68.847	27.527	2.124
	Sundry Debtors	18.366	2.137	0.412
	Cash & Bank Balances	33.131	29.496	34.407
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	59.153	38.848	42.372
Total Current Assets		179.497	98.008	79.315
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	226.431	221.265	89.071
	Other Current Liabilities	5.227	16.701	5.872
	Provisions	1.141	0.348	0.551
Total Current Liabilities		232.799	238.314	95.494
Net Current Assets		(53.302)	(140.306)	(16.179)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		329.484	241.249	230.307

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	151.619	27.675	0.350
		Other Income	128.436	102.219	0.000
		TOTAL (A)	280.055	129.894	0.350
Less	EXPENSES
		TOTAL (B)	256.873	204.439
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.182	(74.545)	26.710
					Including
Less	FINANCIAL EXPENSES (D)		4.446	0.094	Financial
					Expenses
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.736	(74.639)	And
					Depreciation
Less/ Add	DEPRECIATION/ AMORTISATION (F)		53.581	47.815
	PROFIT BEFORE TAX (E-F) (G)		(34.845)	(122.454)	(26.360)
Less	TAX (H)		0.789	0.243	(0.273)
	PROFIT AFTER TAX (G-H) (I)		(35.634)	(122.697)	(26.633)
	Earnings Per Share (Rs.)		0.89	-	-

Expected Sales (2010-2011) : Rs.220.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(12.72)	(94.46)	(7609.43)
Net Profit Margin (PBT/Sales)	(%)	(22.98)	(442.47)	(7531.15)
Return on Total Assets (PBT/Total Assets}	(%)	(6.29)	(25.92)	(10.39)
Return on Investment (ROI) (PBT/Networth)		(0.17)	(0.99)	(0.11)
Debt Equity Ratio (Total Liability/Networth)		1.73	0.99	0.41
Current Ratio (Current Asset/Current Liability)		0.77	0.41	0.83

LOCAL AGENCY FURTHER INFORMATION

Background:

Subject was incorporated on 26.02.2007. the company is a part of the Elringklinger AG Group and was established with the objective of setting up a green- field manufacturing facility in India for manufacturer of various type of gaskets for the automobile industry. The company manufacturing facility is located at Ranjangaon industrial Estate of Maharasahtra industrial Development Corporation near Pune.

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors for Goods and Services
Amount due to Micro and small Enterprises	0.000	0.000	0.000
Amount due to others	226.431	221.265	89.071

Trade References:

· Maruti Suzuki Powertrain (I) Private Limited

Bankers Charges Report as per Registry

Corporate identity number of the company	U28999MH2007FTC168152
Name of the company	ELRINGKLINGER AUTOMOTIVE COMPONENTS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ready Money Mension, 43, Veer Nariman Road, Mumbai-400001, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Volkswagen India Private Limited, E -1, Midc Industrial Area Phase III, Village Nigoje Mhalunge Kharabwadi Chakan Tal Khed, Pune-410 501, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Deed of charge on tools against advance dated 15th December 2009
Date of instrument Creating the charge	15.12.2009
Amount secured by the charge	Rs.0.900 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As mutually agreed. Further penal interest at 24%will be charged, in case of failure to manufacture/develop and supply tools. Terms of Repayment The Advance payment and interest will be deducted from the final invoice. Margin NA Extent and Operation of the charge The Volkswagen India Private Limited has a first and 100% charge on the raw material and other materials purchased, in present or future, for the execution of the order of the Volkswagen India Private Limited
Short particulars of the property charged	Materials, tools, jigs purchased and lying in premises of Elrlingklinger for manufacturing/development of Drawings, cutting, Up bending, clinching, forming and hole punching, checking gauge.

Fixed Assets:

• Plant and Machinery
• Building
• Electrical Installation
• Computer
• Office Equipments
• Vehicles
• Furniture and Fixtures

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.45.02
UK Pound	1	Rs.72.70
Euro	1	Rs.62.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	-
--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.