MIRA INFORM REPORT

Report Date :

29.05.2013

IDENTIFICATION DETAILS

Name :	CONTINENTAL AUTOMOTIVE COMPONENTS (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. 53 B, Bommasandra Industrial Area, Attibele Hobli, Anekal Taluk, Bangalore – 560099, Karnataka
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	15.06.2007
Com. Reg. No.:	08-043146
Capital Investment / Paid-up Capital :	Rs. 2830.100 Millions
CIN No.: [Company Identification No.]	U72900KA2007PTC043146
PAN No.: [Permanent Account No.]	AAKCS9578C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading of instrumentation products, sensors and other allied components for the automobile industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 8400000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of “Continental Automotive Gmbh, Germany”. It has a moderate track record. There appears a huge accumulated loss as of December 2011 which has adversely affected the company’s liquidity. Further, the holding company infused some additional equity which led to improvement in the net worth position. Trade relations are fair. Business is active. Payments are reported as slow. The company can be considered for business dealings with great 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

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. 53 B, Bommasandra Industrial Area, Attibele Hobli, Anekal Taluk, Bangalore – 560099, Karnataka, India
Tel. No.:	91-80-66115580/ 66115100
Fax No.:	91-80-66115115
E-Mail :	srinivasaiah.govindappa@continental-corporation.com
Website :	http://www.continental.corporation

DIRECTORS

As on: 29.06.2012

Name :

Mr. Claude Alex D'gama Rose

Designation :

Managing director

Address :

Flat No. 111, The Embassy, No.15, Ali Askar Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

29.10.1956

Qualification :

B.Com, ICWA

Date of Appointment :

01.01.2010

DIN No.:

01494440

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	U72900KA2007PTC043146	Continental Automotive Components (India) Private Limited	Managing director	01/01/2010	15/06/2007	-	Active	NO
2	U29130TN2007PLC064471	Automotive Infotronics Limited	Director	17/08/2007	17/08/2007	16/11/2007	Active	NO
3	U74900HR2008PTC037519	Continental Automotive Brake Systems (India) Private Limited	Alternate director	25/11/2011	29/04/2008	-	Active	NO
4	U34200HR2007FTC037177	Continental Automotive India Private Limited	Director	29/06/2010	02/11/2009	-	Active	NO
5	U25203DL2006PLC153993	Continental India Limited	Director	29/09/2011	15/07/2011	14/12/2011	Active	NO

Name :

Mr. Minaz Hassam

Designation :

Whole-time director

Address :

Room No. 705, building Lane 1068, Xinzha Road, Shanghai – 200041, China, India

Date of Birth/Age :

23.12.1954

Qualification :

Degree

Date of Appointment :

24.05.2012

DIN No.:

05284769

Name :

Mr. Jay Kelly Kunkel

Designation :

Director

Address :

Lanson Place, Jinlin Tiandi Residences, Unit 3202, No.3, Lane 168, Xing District, Shanghai – 200020, China, India

Date of Birth/Age :

18.11.1959

Qualification :

Degree

Date of Appointment :

02.11.2009

DIN No.:

02812190

Name :

Mr. Carsten Pfuhl

Designation :

Director

Address :

Room No. 705, building Lane 1068, Xinzha Road, Shanghai – 200041, China, India

Date of Birth/Age :

27.02.1976

Qualification :

Degree

Date of Appointment :

29.03.2010

DIN No.:

02950152

KEY EXECUTIVES

Name :	Mr. Srinivasaiah Govindappa
Designation :	Secretary
Address :	No.12, Subbaiah Lane, Murugeshpalya Hal Road, Bangalore – 560017, Karnataka, India
Date of Birth/Age :	08.12.1965
Date of Appointment :	24.01.2008
PAN No.:	ACRPS2799H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.06.2012

Names of Shareholders	No. of Shares
Continental Automtive GmbH, Germany	356809999
Cas One Holding Gessellschaft, Germany	1
Total	356810000

As on: 28.12.2012

Names of Allottess	No. of Allotted
Continental Automtive GmbH, Germany	61250000
Total	61250000

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 :

Manufacturing and Trading of instrumentation products, sensors and other allied components for the automobile industry.

Products :

ITC Code	Production and Services
87089900	Instrumentation products
84133020	Engine systems and components
90328930	Sensors and actuators
84133020	Vehicle body and security products
84133020	Power steering products
84133020	Fuel supply products
90328930	Speed sensors
84133020	Tyres

PRODUCTION STATUS (As on 31.12.2011)

Particulars	Unit	Installed Capacity	Actual Production
Instrumentation products	Nos	3483344	1534059
Sensors and actuators	Nos	3238000	1545742
Fuel supply products	Nos	2210527	417613
Speed sensors	Nos	2145906	1334871
Vehicle body and security products	Nos	2115000	875011
Power steering products	Nos	630000	89760
Others	Nos	597635	369686

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2011	As on 31.12.2010
Working capital loans banks	23.408	726.439
Total	23.408	726.439

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Maruthi Info-Tech Centre, 11-12/1 Inner Ring Road, Koramangala, Bangalore – 560071, Karnataka, India
PAN No.:	AAIFB4734C
Ultimate Holding Company:	Continental AG, Germany
Holding Company :	Continental Automotive GmbH, Germany
Parties under common control with whom transaction have taken place during the year :	Continental Teves AG and Company GmbH , Germany Continental Automotive Benelux, Belgium Continental Automotive Corporation, South Korea Continental Automotive Hungary Kft, Hungary Continental Automotive Mexicana, Mexico Continental Automotive, China Continental Automotive Corporation, China Continental Automotive Jinan Company, China Conti Temic Microelectronic, Germany Continental Engineering Services GmbH, Germany TEMIC Automotive (Phils) Inc., Philippines Continental Automotive Systems (Shanghai) Company Limited., China Continental Automotive Systems US, Inc, USA Continental Automotive Mexicana S.A, Mexico Continental Trading GmbH, Germany Continental Mechanical Components GmbH, Germany Continental Pty Limited., Australia Continental Automotive Belgium N.V., Belgium Continental Brasil Industria Automotive Limited, Brazil Continental Industria e Comrcio, Brazil Continental Automotive Switzerland AG, Switzerland Continental Automotive Systems Management Company Limited, China Continental Automotive, China Continental Automotive Wuhu Company Limited, China Continental Automotive Czech Republic s.r.o., Czech Republic Continental Automotive Systems Czech Republic S.R.O., Czech Republic Continental Automotive Spain, S.A., Spain Continental Automotive France SAS, France Continental Automotive Japan K.K., Japan Continental Automotive, South Korea Continental Automotive Systems Corporation, South Korea Continental Automotive Guadalajara Mexico S.A.de C.V., Mexico Continental Guadalajara Services, Mexico Continental Automotive Instruments Malaysia SDN. BHD, Malaysia Continental Automotive Romania Srl, Romania Continental Automotive (Thailand) Company Limited, Thailand Continental Automotive Systems US Inc, USA Continental Automotive Systems, Romania LLC Continental Automotive Sys. RUS, Russian Fed. Continental Automotive Singapore Pte., Limited., Singapore Continental Automotive, Malaysia A.D.C. Automotive Distance Control Systems GmbH, Germany Continental RICO Hydraulik, India Continental Automotive Asia Pacific Company Limited Shanghai, China Continental Automotive IN, Malaysia Synerject SAS, France Continental Sime Tyre PJ Sdn Continental Tires (Shanghai) Company Limited Continental Automotive Changchun Company Limited, China Continental RICO Hydraulik, India Continental Pty Limited, Australia

CAPITAL STRUCTURE

After 28.12.2012:

Authorised Capital :

No. of Shares	Type	Value	Amount
470000000	Equity Shares	Rs.10/- each	Rs. 4700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
418060000	Equity Shares	Rs.10/- each	Rs. 4180.600 Millions

As on: 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.10/- each	Rs. 3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
283010000	Equity Shares	Rs.10/- each	Rs. 2830.100 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		2830.100	2830.100	2830.100
2] Share Application Money		1709.500	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(2420.450)	(1466.215)	(1123.679)
NETWORTH		2119.150	1363.885	1706.421
LOAN FUNDS
1] Secured Loans		23.408	726.439	0.000
2] Unsecured Loans		1783.809	777.407	670.600
TOTAL BORROWING		1807.217	1503.846	670.600
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3926.367	2867.731	2377.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2741.910	2686.616	2197.523
Capital work-in-progress		596.418	323.717	633.826
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	850.578	724.347	398.645
	Sundry Debtors	1815.825	724.938	655.396
	Cash & Bank Balances	8.667	5.847	25.863
	Other Current Assets	8.290	20.195	21.794
	Loans & Advances	823.267	597.299	316.684
Total Current Assets		3506.627	2072.626	1418.382
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2240.772	1774.668	1625.687
	Other Current Liabilities	553.616	375.966	205.770
	Provisions	124.200	64.594	41.253
Total Current Liabilities		2918.588	2215.228	1872.710
Net Current Assets		588.039	(142.602)	(454.328)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3926.367	2867.731	2377.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	8230.080	6912.270	4091.350
		TOTAL	8230.080	6912.270	4091.350
Less	EXPENSES
		TOTAL	9184.310	7254.810	4690.620
	PROFIT BEFORE TAX		(954.230)	(342.540)	(599.270)
Less	TAX		0.000	0.000	2.110
	PROFIT AFTER TAX		(954.230)	(342.540)	(601.380)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1466.210)	(1123.680)	(522.300)
	BALANCE CARRIED TO THE B/S		(2420.440)	(1466.220)	(1123.680)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	231.895	190.123	108.566
		Service revenue	972.620	577.357	443.766
	TOTAL EARNINGS		1204.515	767.480	552.332
	IMPORTS
		Raw Materials	201.462	16.033	22.926
		Component and Spar Parts	2231.176	2081.371	844.750
		Capital Goods including technical know how	815.556	685.173	720.084
	TOTAL IMPORTS		3248.194	2782.577	1587.760
	Earnings Per Share (Rs.)		(2.67)	(1.21)	(2.12)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	(11.59)	(4.96)	(14.70)
Return on Total Assets (PBT/Total Assets}	(%)	(15.27)	(7.20)	(16.57)
Return on Investment (ROI) (PBT/Networth)		(0.45)	(0.25)	(0.35)
Debt Equity Ratio (Total Debt/Networth)		0.85	1.10	0.39
Current Ratio (Current Asset/Current Liability)		1.20	0.93	0.76

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	No
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

UNSECURED LOAN

(Rs. in Millions)

Particulars	As on 31.12.2011	As on 31.12.2010
Foreign currency loans others	1095.695	178.507
Deposits related parties	688.114	598.900
Total	1783.809	777.407

BACKGROUND

Subject was incorporated on 15 June 2007 as a private limited company under the provisions of the Companies Act, 1956, ('the Act1) with its registered office in Bangalore, India. The Company is in the business of manufacturing and trading of instrumentation products, sensors and other allied components for the automobile industry. The Company is a subsidiary of Continental Automotive GmbH, Germany and the ultimate holding company is Continental AG, Germany.

FINANCIAL RESULTS

Though the accumulated loss of the Company as 31.12.2011 had resulted in erosion of net worth as on that date by more than fifty percent, due to infusion of additional equity capital by the Holding Company, Continental Automotive GmbH, Germany, the net worth position improved subsequently. However, the Company shall comply with section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985.

FIXED ASSETS:

· Freehold Land

· Plant and Machinery

· Tools, Jigs and Moulds

· Computers

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Goodwill

· Technical Kno-how

· Lease Benefit

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 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. 55.74
UK Pound	1	Rs. 84.17
Euro	1	Rs. 72.02

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.