MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	BERU DIESEL START SYSTEMS PRIVATE LIMITED
Registered Office :	Plot No. A 13/2, Navlakh Umbre, Talegaon MIDC, Taluka Maval, Pune-410507, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	15.07.1996
Com. Reg. No.:	11-101055
Capital Investment / Paid-up Capital :	Rs.21.000 Millions
CIN No.: [Company Identification No.]	U29191PN1996PTC101055
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Glow Plug.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 812000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track. The financial position of the company appears to be sound and healthy. Directors are reported to be well experienced and knowledgeable businessmen. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Sumeet Kalantri
Designation :	Finance Manager
Contact No.:	91-2114-306789
Date :	19.11.2012

LOCATIONS

Registered Office / Factory :	Plot No. A 13/2, Navlakh Umbre, Talegaon MIDC, Taluka Maval, Pune-410507, Maharashtra, India
Tel. No.:	91-2114-306789 / 799
Fax No.:	91-2114-306789 / 799
E-Mail :	sumeet.kalantri@beruindia.com info@beruindia.com

DIRECTORS

AS ON 13.09.2012

Name :	Charles Henry Polzin
Designation :	Director
Address :	21610, E, Valley Woo Ds, Beverly Hills, Michigan-48025, USA
Date of Birth/Age :	09.06.1954
Date of Appointment :	09.07.2012
Din No.:	00254746
Name :	Brady Daniel Ericson
Designation :	Director
Address :	334, Boundary Tree, Pass Arden, North C, Arolina, Arden, Carolina-28704, USA
Date of Birth/Age :	10.01.1972
Date of Appointment :	02.09.2011
Din No.:	03048330
Name :	Hrushit Jayant Dave
Designation :	Director
Address :	Sindoor Plot No. 15, Sr. No. 81, Giriraj Society, Aundh, Pune-411007, Maharashtra, India
Date of Birth/Age :	28.03.1988
Date of Appointment :	09.07.2012
Din No.:	03105738

KEY EXECUTIVES

Name :	Mr. Sumeet Kalantri
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 13.09.2012

Names of Shareholders	No. of Shares
Jayant Avinash Dave Joint With Pragna Jayant Dave	931000
Pragna Jayant Dave	140000
Beru AG, Germany	1029000
TOTAL	2100000

AS ON 13.09.2012

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]	49.00
Directors or relatives of directors	51.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Glow Plug.

PRODUCTION STATUS [AS ON 31.12.2011]

Particulars	Unit	Actual Production
Glow Plug	Nos.	1339500
Flame Start System
Flame Glow Plug	Nos.	2108
Relay 24V	Nos.	6674
Solenoid Valve	Nos.	1898
Connecting Pipe	Nos.	150
Connecting Cable / Harness	Nos.	1319
Flame Glow Plug Controller	Nos.	1130
Temperature Sensor	Nos.	1966
Grid Heater	Nos.	14097
Glow Plug Timer	Nos.	14945

GENERAL INFORMATION

Customers :

· Mahindra

· Ford

· Tata

· Force

· Forbes Marshall

· Bajaj

· Suzuki

· Eicher

· Mobis

· Federal Mogul

No. of Employees :

Information denied by the management.

Bankers :

· Oriental Bank of Commerce

· State Bank of India

· Citi Bank, Pune, Maharashtra, India

Facilities :

Unsecured Loan	As on 31.12.2011 [Rs. in Millions]	As on 31.12.2010 [Rs. in Millions]
Other Loan From Shareholders
External Commercial Borrowings [Repayable within one year Rs. Nil and Previous Year Rs. Nil.]	53.974	0.000
TOTAL	53.974	0.000

Banking Relations :	--
Auditors :
Name :	V.S. Potdar and Company Chartered Accountants
Address :	C-9, Beverly Estate, 852/2 and 6 Bhandarkar Institute Road, Pune-411004, Maharashtra, India
Tel. No.:	91-20-25678400/03
Fax No.:	91-20-25678405
E-Mail :	vspaco@eth.net
PAN No:	ABQPP0877P
Associates:	· BorgWaner Beru Systems GmbH · Jayant Engineering Works · Jayant International · Associated Engineers · Aarushi Developers

CAPITAL STRUCTURE

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2100000	Equity Shares	Rs.10/- each	Rs.21.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		21.000	21.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		182.047	142.230	48.983
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		203.047	163.230	63.983
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		53.974	0.000	0.000
TOTAL BORROWING		53.974	0.000	0.000
DEFERRED TAX LIABILITIES		3.668	1.244	1.283
TOTAL		260.689	164.474	65.266
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		201.907	13.212	15.751
Capital work-in-progress		0.000	64.474	13.591
INVESTMENT		0.000	11.884	11.211
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.311	16.607	13.716
	Sundry Debtors	75.101	51.349	49.516
	Cash & Bank Balances	34.341	56.908	9.526
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	26.369	25.644	11.643
Total Current Assets		177.122	150.508	84.401
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	87.869	51.534	46.532
	Other Current Liabilities	3.358	1.940	0.015
	Provisions	27.113	22.130	13.141
Total Current Liabilities		118.340	75.604	59.688
Net Current Assets		58.782	74.904	24.713
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		260.689	164.474	65.266

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income
		Other Income
		TOTAL	291.218	219.028	143.777
Less	EXPENSES
		TOTAL	214.025	157.069	123.192
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		77.193	61.959	20.585
Less/ Add	DEPRECIATION/ AMORTISATION		18.099	2.395	2.660
	PROFIT / (LOSS) BEFORE TAX		59.094	59.564	17.925
Less	TAX		19.131	20.317	8.935
	PROFIT / (LOSS) AFTER TAX		39.963	39.247	8.990
Less	PRIOR PERIOD ITEMS		0.147	0.000	0.003
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		68.671	29.424	20.437
	BALANCE CARRIED TO THE B/S		108.487	68.671	29.424
	Earnings / (Loss) Per Share (Rs.)		19.03	18.69	--

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	13.72	17.92	6.25
Return on Total Assets (PBT/Total Assets}	(%)	15.59	36.38	17.90
Return on Investment (ROI) (PBT/Networth)		0.29	0.36	0.28
Debt Equity Ratio (Total Liability/Networth)		0.85	0.46	0.93
Current Ratio (Current Asset/Current Liability)		1.50	1.99	1.41

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.12.2011 (Rs. in millions)	31.12.2010 (Rs. in millions)	31.12.2009 (Rs. in millions)
Sundry Creditors	87.869	51.534	46.532

Sr. No.	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	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

The registered office of the company has been shifted from 46/2/1B, Kaka Halwai Industrial Estate, Pune Satara Road, Pune-411009, Maharashtra, India to the present address w.e.f. 01.01.2012.

FIXED ASSETS:

· Leasehold Land

· Factory Building

· Office Building

· Plant and Machinery

· Generator Set

· Vehicles

· Office Equipments

· Computer Hardware

· Furniture and Fixtures

· Elevator

· Temporary Shed

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 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.54.96
UK Pound	1	Rs.87.50
Euro	1	Rs.70.15

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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		55

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.