MIRA INFORM REPORT

Report Date :

22.06.2012

IDENTIFICATION DETAILS

Name :	COSMA INTERNATIONAL (INDIA) PRIVATE LIMITED
Registered Office :	Satav Industrial Estate, Industrial Gala No. # 03, Gat # 376, Kharabwadi, Behind Racold, Chakan-Talegaon Road, Khed Taluka, Pune – 410 501, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	07.05.2009
Com. Reg. No.:	11-133906
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U34200PN2009FTC133906
TAN No.: [Tax Deduction & Collection Account No.]	PNEC07876B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sheet Metal Parts for Passenger Cars.
No. of Employees :	150 (Approximately)

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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of Magna Cyprus Holding Limited, Cyprus. It is an established company having moderate track. The turnover of the company have improve. But the latest financial detail is missing. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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.

INFORMATION PARTED BY

Name :	Mr. Amul Shinde
Designation :	Account Officer
Contact No.:	91-2135-677405
Date :	20.06.2012

LOCATIONS

Registered Office/ Factory :	Satav Industrial Estate, Industrial Gala No. # 03, Gat # 376, Kharabwadi, Behind Racold, Chakan-Talegaon Road, Khed Taluka, Pune – 410 501, Maharashtra, India
Tel. No.:	91-2135-677405/ 677440/ 677448/ 677409
Fax No.:	91-2135-677410
E-Mail :	SChakraborty@cosma.com ashind@cosma.com Kishore.Kotagiri@vehmaintl.com
Website :	www.cosma.com
Location :	Rented

DIRECTORS

As on 30.06.2011

Name :	Mr. Douglas Richard Tatters
Designation :	Director
Address :	685, Kingsmere Ave, New Market, Canada, L3X1L5
Date of Birth/Age :	15.03.1961
Date of Appointment :	07.05.2009
DIN No.:	01384498

Name :	Mr. Eric Jon Wilds
Designation :	Director
Address :	22540, Arden Glen Ct., Novi, Michigan - 48374, USA
Date of Birth/Age :	04.03.1967
Date of Appointment :	07.05.2009
DIN No.:	02387126

Name :	Mr. Seetarama Swamy Kotagiri
Designation :	Director
Address :	45, Roundtree, Rochester Hills, MI 48307, Michigan, USA
Date of Birth/Age :	17.12.1968
Date of Appointment :	07.05.2009
DIN No.:	02393025

Name :	Mr. Prasad Vasudeva Rao
Designation :	Director
Address :	MP209, Suryodaya Apartments, Mangalya Swapnaloka, Varthur Hubli, Near Marathahalli Bridge, Bangalore – 560 037, Karnataka, India
Date of Birth/Age :	05.08.1965
Date of Appointment :	30.09.2010
DIN No.:	03259082

KEY EXECUTIVES

Name :	Mr. Amul Shinde
Designation :	Account Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

Names of Shareholders	No. of Shares
Magna Cyprus Holding Limited, Cyprus	122500000
Magna Steyr Inc., Canada	1

As on 30.06.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Sheet Metal Parts for Passenger Cars.

Products :

Product Description	Item Code No.
Modular Brackets – IP Beam	870790.00

Exports :

Products :

Sheet Metal Parts

Countries :

v Russia

v South Africa

Imports :

Products :

Raw Materials

Countries :

Europe

Terms :

Selling :

Credit (30 days)

Purchasing :

Credit (30 days)

PRODUCTION STATUS (AS ON 31.12.2010)

Particulars	Unit	Installed Capacity	Actual Production
Modular Bracket – IP Beam	Nos.	128350	30284
Door Beam	Nos.	NA	79064

Notes:

1. Inter terms of Notification No. 477(E) dated July 25, 1991, issued by the Ministry of Industry, Department of Industrial Development, the Company’s products have been exempted from industrial licensing. Accordingly, disclosure requirements concerning licensed capacity are not applicable.

2. The installed capacity is as certified by the management and relied on by auditors, without verification, this being a technical matter. Installed Capacity for Door Beam is not available with the management.

GENERAL INFORMATION

Customers :

OEM’s and Manufacturer

v General Motors India

v Ford India

No. of Employees :

150 (Approximately)

Bankers :

Citi Bank, Pune Branch, Maharashtra, India

Facilities :

Unsecured Loan	31.12.2010 (Rs. in Millions)	31.12.2009 (Rs. in Millions)
Short Term Loans
- From Banks	45.000	0.000
Total	45.000	0.000

Banking Relations :	--
Auditors :
Name :	S.V. Ghatalia and Associates Chartered Accountants
Address :	C-401, 4^th Floor, Panchshil Tech Park, Yerwada (Near Don Bosco School), Pune – 411 006, Maharashtra, India
Tel No.:	91-20-66036000
Fax No.:	91-20-66015900
Income-tax PAN of auditor or auditor's firm :	AACFS6921Q
Holding Company :	Magna Cyprus Holding Limited, Cyprus
Ultimate Holding Company :	Magna International Inc., Canada
Fellow Subsidiaries (As certified by management) :	v Vehma Engineering Solutions (India) Private Limited, India v Cosma International Inc., Canada v Vehma International of America Inc., USA v Cosma Engineering Europe AG, Austria v Promatek Research Center, Canada v Litens Automotive India Private Limited, India v Sonara Forming SA de CV, Mexico v Cosym LLC, Russia v Magna Tech and Tools Systems, China v Magna Steyr Inc., Canada

CAPITAL STRUCTURE

As on 30.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
122500000	Equity Shares	Rs.10/- each	Rs.1225.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
122500000	Equity Shares	Rs.10/- each	Rs.1225.000 Millions

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Of the Above:

(i) 4999999 equity shares are held by Magna Cyprus Holding Limited, Cyprus the Holding Company.

(ii) 1 equity share held by Magna Steyr Inc., Canada

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS		31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(57.594)	(41.495)
NETWORTH		(7.594)	8.505
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		45.000	0.000
TOTAL BORROWING		45.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		37.406	8.505
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		33.505	29.270
Capital work-in-progress including capital advances		12.444	4.787
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.268	0.041
	Sundry Debtors	52.848	0.420
	Cash & Bank Balances	42.024	26.079
	Other Current Assets	0.000	0.350
	Loans & Advances	123.069	48.218
Total Current Assets		231.209	75.108
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.792	94.717
	Other Current Liabilities	103.733	2.691
	Provisions	3.227	3.252
Total Current Liabilities		239.752	100.660
Net Current Assets		(8.543)	(25.552)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		37.406	8.505

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009
	SALES
		Turnover (Net)	141.702	9.364
		Other Income	1.414	0.346
		TOTAL (A)	143.116	9.710
Less	EXPENSES
		Raw material and bought-out components consumed	47.775	0.117
		Cost of Tooling	51.930	34.792
		Personnel Expenses	11.489	2.318
		Operating and Other Expenses	40.844	11.432
		(Increase) in Inventories	(2.622)	0.000
		TOTAL (B)	149.416	48.659
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(6.300)	(38.949)
Less	FINANCIAL EXPENSES (D)		2.335	0.068
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(8.635)	(39.017)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.464	2.478
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(16.099)	(41.495)
Less	TAX (H)		0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(16.099)	(41.495)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(41.495)	0.000
	BALANCE CARRIED TO THE B/S		(57.594)	(41.495)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	7.072	0.145
	TOTAL EARNINGS		7.072	0.145
	IMPORTS
		Capital Goods	5.084	5.373
		Tooling Cost	0.000	31.531
		Raw Material	14.235	0.422
	TOTAL IMPORTS		19.319	37.326
	Earnings / (Loss) Per Share (Rs.)		(3.22)	(8.30)

Particulars	As on 2012	As on 2011
Sales Turnover (Approximately)	220.000	160.000
	(New Orders)

Expected Sales (2013): Rs.250.000 millions

The above information has been parted by Mr. Amul Shinde (Account Officer).

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009
PAT / Total Income	(%)	(11.25)	(427.34)
Net Profit Margin (PBT/Sales)	(%)	(11.36)	(443.13)
Return on Total Assets (PBT/Total Assets}	(%)	(6.08)	(39.75)
Return on Investment (ROI) (PBT/Networth)		2.12	(4.88)
Debt Equity Ratio (Total Liability/Networth)		(37.50)	11.84
Current Ratio (Current Asset/Current Liability)		0.96	0.75

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.12.2010 (Rs. in millions)	31.12.2009 (Rs. in millions)
Sundry Creditors
- Total outstanding dues of Micro and Small Enterprises	--	--
- Total outstanding dues to creditors other than Micro and Small Enterprises	132.792	94.717
Total	132.792	94.717

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last two years	Yes
13) Reasons for variation <> 20%	Yes
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	Yes

NATURE OF OPERATIONS:

The Company is primarily engaged in the manufacture of sheet metal parts for passenger cars. The Company has been incorporated on May 7, 2009 under the Companies Act, 1956. The Company is a 99.99% subsidiary of Magna Cyprus Holding Limited, Cyprus.

PERFORMANCE:

Turnover during the financial year was Rs.141.702 millions. Management of the company has taken several steps, subsequent to the balance Sheet date, to aggressively better the performance of the company in coming years

TRADE REFERENCES:

v General Motors India

v Ford India

FIXED ASSETS:

Tangible Assets:

v Plant and Machinery

v Furniture and Fittings

v Leasehold Improvements

v Computers

v Office and Other Equipments

Intangible Assets:

v 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.56.42
UK Pound	1	Rs.88.45
Euro	1	Rs.71.52

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	SMN

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	3
--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	YES
--AFFILIATION	YES/NO	YES
--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.