MIRA INFORM REPORT

Report Date :

17.01.2013

IDENTIFICATION DETAILS

Name :	MERITOR DO BRASIL SISTEMAS AUTOMOTIVOS LTDA.
Registered Office :	Rua Nathanael Tito Salmon,409 – Centro 06.016-075 - Osasco/Sp
Country :	Brazil
Date of Incorporation :	27.12.1955
Legal Form :	Limited Liability Company
Line of Business :	Manufacture of Parts and Accessories for Motor Vehicles
No. of Employees :	1300

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

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^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Brazil	A2	A2

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

Brazil - ECONOMIC OVERVIEW

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth to 2.7% for 2011 as a whole, though forecasts for 2012 growth are somewhat higher. Despite slower growth in 2011, Brazil overtook the United Kingdom as the world's seventh largest economy in terms of GDP. Urban unemployment is at the historic low of 4.7% (December 2011), and Brazil's traditionally high level of income equality has declined for each of the last 12 years. Brazil's high interest rates make it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchanges markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint.

Source : CIA

Company name

MERITOR DO BRASIL SISTEMAS AUTOMOTIVOS LTDA.

ADDRESSES

MAIN ADDRESS:	RUA NATHANAEL TITO SALMON,409 - CENTRO
ZIP CODE/CITY:	06.016-075 - OSASCO/SP
PHONE:	11 3684-6588
E-MAIL:	jadir.almeida@meritor.com
WEB SITE:	www.meritor.com

BRANCHES:
ADDRESS:	AVENIDA JOÃO BATISTA,825 - CENTRO
ZIP CODE/CITY:	06097-105 OSASCO/SP
STATE REGISTER:	492.001.261.119
ADDRESS:	RUA ESTER ROMBENSO,403 - CENTRO
ZIP CODE/CITY:	06097-120 OSASCO/SP
PHONE:	11 3684-6931
CNPJ:	56.669.187/0011-47
STATE REGISTER:	492.458.225.119
ADDRESS:	RUA ENGENHEIRO ALAN DA COSTA BATISTA,100 MODULO - BAIRRO PEDRA SELADA
ZIP CODE/CITY:	27512-230 RESENDE/RJ
CNPJ:	56.669.187/0017-32
STATE REGISTER:	85.942.204
ADDRESS:	AVENIDA JOÃO BATISTA,830 - CENTRO
ZIP CODE/CITY:	06097-095 OSASCO/SP
CNPJ:	56.669.187/0012-28
STATE REGISTER:	492.365.928.118
ADDRESS:	AVENIDA JOÃO BATISTA,826 - CENTRO
ZIP CODE/CITY:	06097-095 OSASCO/SP
CNPJ:	56.669.187/0020-38
STATE REGISTER:	492.477.248.117

LEGAL DATA

MAIN ACTIVITIES:

MANUFACTURE OF PARTS AND ACCESSORIES FOR MOTOR VEHICLES

LEGAL FORM:	LIMITED LIABILITY COMPANY
INCORPORATION DATE:	27/12/1955
REGISTER DATE:	27/12/1955
BALANCE SHEET FILING DATE:	31/12
TAX CONTRIBUTOR NUMBER(CNPJ):	56.669.187/0001-75
STATE REGISTER:	417.120.754.110
SHARE CAPITAL:	R$ 231.763.539,00
LAST REGISTER OF CAPITAL:	05/10/2010

BOARD OF DIRECTORS:
ANGELO ANTONIO MORINO	DIRECTOR
SILVIO NOGUEIRA DE BARROS	DIRECTOR
JOSE MANOEL BERNARDES	DIRECTOR
TANIA MARA FERREIRA	ATTORNEY

AUTHORIZED USE OF SIGNATURE

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

SHAREHOLDERS / PARTNERS:
MERITOR BRAZIL HOLDING, LLC	R$ 231.763.538,00
ARVIN FINANCE, LLC. (U.S.A.)	R$ 1,00

AFFILIATES / SUBSIDIARIES:

A SCAN THROUGH OUTSIDE SOURCES SHOWED THE SUBJECT AND/OR DIRECTORS HAS THE FOLLOWING UNCONFIRMED HOLDINGS:

ALIMENTOS PREMIUM DO BRASIL LTDA.

NEU EMPREENDIMENTOS E PARCIPACOES LTDA - ME

SUSPENSYS SISTEMAS AUTOMOTIVOS LTDA

DE LUXE INTIME CONFECCOES LTDA - ME

MASTER SISTEMAS AUTOMOTIVOS LTDA

COMPANY'S BACKGROUND

THE SUBJECT WAS ESTABLISHED ON, DECEMBER 27, 1955 AS ARVIN SISTEMAS DE EXAUSTÃO LTDA TO BE ENGAGED IN THE SAID LINE OF BUSINESS. ON JULY 07, 1978 IT ALTERED TO ARVIN EXHAUST DO BRASIL LTDA. ON AUGUST 30, 2003 IT ALTERED TO ARVINMERITOR DO BRASIL SISTEMAS AUTOMOTIVOS LTDA. LATER IT ADOPTED THE ABOVE MENTIONED NAME AND UP TO DATE IT IS STILL OPERATING WITHIN THE GENERAL SCENE REPORTED HEREIN.

IN AUGUST 2003 THE SUBJECT TOOK OVER THE COMPANY MERITOR DO BRASIL LTDA., CNPJ: 61.080.396/0001-19.

PARTNERS AND DIRECTORS:

MERITOR BRAZIL HOLDING, LLC: HEADQUARTERED AT 2135 WEST MAPLE ROAD TROY, STATE MICHAGAN, 48084 UNITED STATES, REPRESENTED BY ITS ATTORNEY, TANIA MARA FERREIRA, BRAZILIAN, HOLDER OF DOCUMENTS CPF 520.124.338-04 AND RG 4.291.152, RESIDENTIAL ADDRESS AT AVENIDA BRIGADEIRO FARIA LIMA, 3729, 2º ANDAR, ITAIM BIBI, ZIP CODE 04538-905, SÃO PAULO/SP;

ARVIN FINANCE, LLC. (U.S.A.): HEADQUARTERED AT 2135 WEST MAPLE ROAD TROY, STATE MICHAGAN, 48084 UNITED STATES, REPRESENTED BY ITS ATTORNEY, TANIA MARA FERREIRA, BRAZILIAN, HOLDER OF DOCUMENTS CPF 520.124.338-04 AND RG 4.291.152, RESIDENTIAL ADDRESS AT AVENIDA BRIGADEIRO FARIA LIMA, 3729, 2º ANDAR, ITAIM BIBI, ZIP CODE 04538-905, SÃO PAULO/SP;

JOSE MANOEL BERNARDES: BRAZILIAN, HOLDER OF DOCUMENTS CPF 970.728.188-04 AND RG 7.572.473 SP, RESIDENTIAL ADDRESS AT AVENIDA ANTONIO DE SOUZA NOSCHESE, 2225, PARQUE CONTINENTAL, ZIP CODE 05328-000, SÃO PAULO/SP;

SILVIO NOGUEIRA DE BARROS: BRAZILIAN, HOLDER OF DOCUMENTS CPF 481.110.748-91 AND RG 6.406.447,. SP, RESIDENTIAL ADDRESS AT RUA FRANCISCA JULIA, 229, APTO 132, ZIP CODE 02403-010, SÃO PAULO/SP;

ANGELO ANTONIO MORINO: BRAZILIAN, HOLDER OF DOCUMENTS CPF 007.795.738-54 AND RG 5.812.851 SP, RESIDENTIAL ADDRESS AT ALAMEDA SUÉCIA, 276, ZIP CODE 06474-230, BARUERI/SP.

ON AUGUST 11, 2009 THE COMPANY UNDERWENT A PARTIAL SPLIT OFF WITH THE TRANSFERENCE OF THE SPUN-OFF PART TO MERITOR COMERCIO E INDUSTRIA DE SISTEMAS AUTOMOTIVOS LTDA NIRE 35222396392.

ON OCTOBER 05, 2010 THE COMPANY UNDERWENT A PARTIAL SPLIT OFF WITH THE TRANSFERENCE OF THE SPUN-OFF PART TO ARVINMERITOS DO BRASIL COMERCIO DE SISTEMAS DE PORTAS LTDA.

FURTHER DETAILS ARE SO FAR NOT KNOWN.

PUBLIC INFORMATION:

PROTESTS:

3 PROTEST,TOTAL AMOUNT R$ 29.742,15

DETAILS OF LATEST PROTESTS:

NOTARY OFFICE:	DATE:	VALUE:
1º CARTORIO DE BARUERI/SP	21/12/2012	R$ 369,00
1º CARTORIO DE OSASCO/SP	18/12/2012	R$ 16.848,80
1º CARTORIO DE OSASCO/SP	07/12/2012	R$ 12.524,35

LAWSUITS:
	DATE:	COURT OF LAW:

1

FEDERAL LAWSUIT

10/05/10

1º VARA DE CAMBUÍ/MG

FINANCIAL INFORMATION

DUE TO THE SUBJECT'S LEGAL FORM, IT IS NOT OBLIGED TO PUBLISH THE BALANCE SHEET INFORMATION. WHEN INTERVIEWING SOURCES AT THE SUBJECT COMPANY DECLINED TO PROVIDE ANY KIND OF FINANCIAL INFORMATION.

OUTSIDE SOURCES CONTACTED SHOWED NO FINANCIAL DATA ABOUT THIS COMPANY.

EXCHANGE RATE:
US$ 1,00 = R$ 2,03	- OFFICIAL RATE ON 14/01/2013

COMMENTS ON THE FINANCIAL INFORMATION:

IN THE ABSENCE OF FINANCIAL INFORMATION NO COMMENTS CAN BE MADE ABOUT THE SUBJECT'S CURRENT FINANCIAL STANDING.

REAL ESTATE:

OWNED PREMISES ARE VALUED AT R$ 75.750.000,00

VEHICLES:

NOT AVAILABLE

MACHINES:

NOT AVAILABLE

INSURANCE

THE SUBJECT IS SAID TO HOLD INSURANCE POLICIES BUT DETAILS WERE NOT DISCLOSED.

BANKING REFERENCES

	BRANCH/PHONE:	CITY:
BANCO DO BRASIL S/A	0637-8 / 11 3682-5996	OSASCO/SP
BANCO BRADESCO S/A	0127-9 / 11 3465-1396	OSASCO/SP
BANCO ABN AMRO REAL S/A	0689 / 11 3174-7123	SÃO PAULO/SP

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK").

ACTIVITIES COMMENTS

MANUFACTURE OF PARTS AND ACCESSORIES FOR MOTOR VEHICLES

IMPORT AND EXPORT:

IMPORTS FROM:

NOT AVAILABLE.

EXPORTS TO:

NOT AVAILABLE.

MAIN CLIENTS:

DOMESTIC CLIENTS:

AGRALE S/A

CATERPILLAR BRASIL LTDA.

DAIMLERCHRYSLER DO BRASIL LTDA

FIAT AUTOMOVEIS S/A

FORD BRASIL LTDA.

GENERAL MOTORS DO BRASIL LTDA.

MAN LATIN AMERICA IND E COM DE VEICULOS LTDA

SCANIA LATIN AMERICA LTDA

TOYOTA DO BRASIL LTDA

VOLKSWAGEN DO BRASIL LTDA.

VOLVO DO BRASIL VEICULOS LTDA.

FOREIGN CLIENTS:

CHRYSLER CORPORATION

STAFF:

THE COMPANY HAS: 1300 EMPLOYEE(S)

CONCEPT AND FULFILMENT

THE SUBJECT IS A WELL-ESTABLISHED COMPANY, OPERATING SINCE 1955. IT IS SUBSIDIARY OF A GROUP WITH HUGE FINANCIAL STRENGTH. SO FAR IT HAS A CLEAR TRADE HISTORY, GOOD PAYMENT BEHAVIOUR AND KEEPS ENJOYING A FAVORABLE REPUTATION AMONG LOCAL TRADE SOURCES.

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

THE LAWSUIT REPORTED IS NOT RELATED WITH TRADE DEBT. IT IS RELATED TO TAX DEBT THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUIT DOES NOT AFFECT THE COMPANY’S TRADE REPUTATION.

THE PROTESTS FOUND DO NOT AFFECT SUBJECT'S REPUTATION.

MAIN SUPPLIERS:

DOMESTIC SUPPLIERS:

ACESITA S/A

ARCELOR BRASIL S/A

BASF S/A

CIA SIDERURGICA BELGO MINEIRA

CINPAL INDUSTRIAL DE PEÇAS LTDA

COBRADIS CIA BRASILEIRA DISTRIBUIDORA DE PRODUTOS

DAMBROZ S/A IND MECÂNICA E METALÚRGICA

DELGA INDUSTRIA E COMERCIO LTDA

FERROLAR INDÚSTRIA E COMÉRCIO DE ARTEFATOS DE METAIS LTDA

INDÚSTRIA DE TINTAS E VERNIZES PAUMAR LTDA

OURO FINO IND E COMÉRCIO DE AUTO PEÇAS LTDA

PAULETUBO COMERCIAL LTDA

RIGESA CELULOSE PAPEL E EMBALAGENS LTDA

SAINT GOBAIN VIDROS S/A

THYSSEN FUNDIÇÕES LTDA.

TINKEN DO BRASIL LTDA

VALLOUREC & MANNESMANN TURES V. & M DO BRASIL

PAYMENT HISTORY:

7 SUPPLIERS REPORTED PAYMENTS:

TOTAL AMOUNT: R$ 1.846.392,00

AMOUNT OF INVOICES PAID: 181

TOTAL OF PROMPT PAYMENTS: 93,5%

TOTAL OF DELAYED PAYMENTS: 6,5%

HIGHEST INVOICE: R$ 47.706,60

HIGHEST CREDIT: R$ 186.483,16

OUTSTANDING INVOICES DUE WITHIN THE NEXT 60 DAYS:

---------------------------	SUPPLIERS:	INVOICES:	TOTAL AMOUNT:
DUE WITHIN 30 DAYS	2	30	R$ 182.999,58
DUE WITHIN 60 DAYS	2	10	R$ 84.415,77

FINAL OPINION

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS FOR SEVERAL YEARS. UP TO DATE IT HAS CLEAR TRADE HISTORY AND GOOD PAYMENT BEHAVIOUR.

BASED ON THE OVERALL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S SIZE AND FINANCIAL STRENGTH.

DESPITE THE ABSENCE OF FINANCIAL DATA AN INITIAL CREDIT LIMIT OF US$ 300.000,00 MAY BE CONSIDERED. FOR HIGHER AMOUNTS IT WOULD BE RECOMMENDED DEMANDING A COLLATERAL OF THE SHAREHOLDERS.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.82
UK Pound	1	Rs.87.9
Euro	1	Rs.72.83

INFORMATION DETAILS

Report Prepared by :

SDA

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	----

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%)

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.