MIRA INFORM REPORT

Report Date :

23.10.2012

IDENTIFICATION DETAILS

Name :	INERGY AUTOMOTIVE SYSTEMS INDIA PRIVATE LIMITED
Registered Office :	Plot No.S-16, 17 and 18, SIPCOT Industrial Complex, Phase–III, Mukundarayapyram Village and Post Ranipet, Walaj Pet, Taluka Vellore – 632 405, Tamilnadu
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	24.04.2007
Com. Reg. No.:	18-072066
Capital Investment / Paid-up Capital :	Rs.206.500 Millions
CIN No.: [Company Identification No.]	U25209TN2007PTC072066
TAN No.: [Tax Deduction & Collection Account No.]	CHEI06215G
PAN No.: [Permanent Account No.]	AABCI6747A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Plastic Fuel Systems and Gas Storage and Distribution Systems Aimed at Delivering Energy to the Engine or De-Polluting Engine Exhaust Gases.
No. of Employees :	Not Available

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

Maximum Credit Limit :	USD 860000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Inergy Automotive System SA, Paris. It is an established company having moderate track. It has achieved growth in its sales turnover during 2011. It has incurred heavy loss its operations. There appears huge accumulated losses recorded by the company. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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.

LOCATIONS

Registered Office :	Plot No.S-16, 17 and 18, SIPCOT Industrial Complex, Phase–III, Mukundarayapyram Village and Post Ranipet, Walaj Pet, Taluka Vellore – 632 405, Tamilnadu, India
Tel. No.:	91-4172-241024
Fax No.:	91-4172-241044
E-Mail :	odile.descamps@inergyautomotive.com
Website :	http://www.inergyautomotive.com

DIRECTORS

As on: 29.06.2012

Name :

Mr. Pierre Raymond Emile Lecocq

Designation :

Managing Director

Address :

2, Square Mignot, Paris – 75116, France

Date of Birth/Age :

23.08.1949

Date of Appointment :

17.02.2009

DIN No.:

01483128

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25209TN2007PTC072066	Inergy Automotive Systems India Private Limited	Managing director	17/02/2009	17/07/2007	-	Active	NO
2	U34300PN2011PTC139999	Plastic Omnium Engineering India Private Limited	Additional director	01/07/2012	01/07/2012	-	Active	NO

Name :

Mr. Odile Claude Descamps

Designation :

Director

Address :

5^th Floor, 52 RUE Liancourt, Paris – 75014, France

Date of Birth/Age :

06.04.1959

Date of Appointment :

30.06.2009

DIN No.:

02584707

Name :

Mr. Jaya Prakash Babu Kodimi

Designation :

Additional Director

Address :

Door No.20-2-496-5B, Maruhti Nagar, Korlagunta Tirupati, Chittoor District – 517 501, Andhra Pradesh, India

Date of Birth/Age :

01.08.1973

Date of Appointment :

29.06.2011

DIN No.:

03420123

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.06.2012

Names of Shareholders	No. of Shares
Inergy Automotive Systems S.A., France	34410000
Inergy Automotive Systems Spain S.A., Spain	10000
Total	34420000

Equity Share Break up (Percentage of Total Equity)

As on: 29.06.2012

Category	Percentage
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 :

Manufacturer of Plastic Fuel Systems and Gas Storage and Distribution Systems Aimed at Delivering Energy to the Engine or De-Polluting Engine Exhaust Gases.

PRODUCTION STATUS (As on: 31.12.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Gasoline / Diesel Part	Numbers	NA	237980	69181

Notes:

(i) The Installed Capacity has been certified by the Company’s management on triple shift basis and relied upon by the Auditors, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.12.2011	As on 31.12.2010
Other external commercial borrowings unsecured	253.013	183.995
Total	253.013	183.995

Banking Relations :	--
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountants
Address :	No.102, 2^nd Floor, Gangadhara Chetty Road, Bangalore – 560 042, Karnataka, India
Tel. No.:	91-80-25549666/ 25514977/ 41133305
Fax No.:	91-80-25549666/ 25514977/ 41133305
PAN No.:	AAAFK7554R
Holding Company :	Inergy Automotive Systems S.A., Paris
Fellow Subsidiary :	· Inergy Automotive Systems – China · Inergy Automotive Systems – Belgium · Inergy Automotive Systems - Brasil · Inergy Automotive Systems – Thailand · Inergy Automotive Systems – Korea · Inergy Automotive Systems (USA)LLC · Inergy Automotive Systems KK (Japan) · Inergy Automotive Manufacturing Systems India Private Limited – India Fellow

CAPITAL STRUCTURE

As on: 29.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
68250000	Equity Shares	Rs.10/- each	Rs.682.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34420000	Equity Shares	Rs.10/- each	Rs.344.200 Millions

As on: 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
68250000	Equity Shares	Rs.10/- each	Rs.682.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20650000	Equity Shares	Rs.10/- each	Rs.206.500 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		206.500	173.100	132.100
2] Share Application Money		137.700	33.400	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(129.056)	(42.903)	(15.515)
NETWORTH		215.144	163.597	116.585
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		253.013	183.995	134.060
TOTAL BORROWING		253.013	183.995	134.060
DEFERRED TAX LIABILITIES		0.000	6.420	0.000
TOTAL		468.157	354.012	250.645
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		372.293	368.029	16.358
Capital work-in-progress		53.477	10.367	266.079
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.331	16.056	2.474
	Sundry Debtors	43.407	5.312	0.000
	Cash & Bank Balances	108.438	24.828	26.531
	Other Current Assets	0.002	0.002	0.000
	Loans & Advances	31.887	46.445	16.585
Total Current Assets		213.065	92.643	45.590
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	155.790	83.834	58.064
	Other Current Liabilities	13.879	32.744	19.318
	Provisions	1.009	0.449	0.000
Total Current Liabilities		170.678	117.027	77.382
Net Current Assets		42.387	(24.384)	(31.792)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		468.157	354.012	250.645

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income			0.000
		Other Income			4.262
		TOTAL (A)	257.355	14.848	4.262
Less	EXPENSES
		Expenditure on Employees			3.106
		Administration and Other Expenses			7.286
		TOTAL (B)	349.621 (Including Depreciation and Financial Expenses)	35.761 (Including Depreciation and Financial Expenses)	10.392
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				(6.130)
Less	INTEREST (D)				1.911
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				(8.041)
Less/ Add	DEPRECIATION/ AMORTISATION (F)				0.118
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(92.266)	(20.913)	(8.159)
Less	TAX (H)		6.113	(6.420)	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(98.379)	(14.493)	(8.159)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(27.334)	(15.515)	(7.356)
	BALANCE CARRIED TO THE B/S		(86.153)	(27.334)	(15.515)
	Earnings Per Share (Rs.)		(4.76)	(0.84)	(0.62)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	(38.23)	(97.61)	(191.44)
Return on Total Assets (PBT/Total Assets}	(%)	(15.76)	(4.54)	(13.17)
Return on Investment (ROI) (PBT/Networth)		0.43	0.12	(0.07)
Debt Equity Ratio (Total Liability/Networth)		1.97	1.84	1.81
Current Ratio (Current Asset/Current Liability)		1.25	0.79	0.59

LOCAL AGENCY FURTHER INFORMATION

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	No
10]	Designation of contact person	No
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	No
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	No
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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
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 Unit 706, A Wing, Carlton Tower No.1, Airport Road, Bangalore – 560 008, Karnataka, India, to the preset address w.e.f. 18.06.2009.

FIXED ASSETS:

Tangible Assets

· Leasehold Land

· Buildings

· Computers

· Furniture and Fixtures

· Office Equipments

· Vehicles

Intangible Assets

· Computers – 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 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.53.67
UK Pound	1	Rs.86.05
Euro	1	Rs.70.07

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	3
--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		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.