MIRA INFORM REPORT

Report Date :

18.09.2014

IDENTIFICATION DETAILS

Name :	GKN DRIVELINE (INDIA) LIMITED
Formerly Known As :	GKN INVEL TRANSMISSIONS LIMITED
Registered Office :	Plot No. 270, Sector – 24, Faridabad – 121 005, Haryana
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	25.07.1985
Com. Reg. No.:	05-034079
Capital Investment / Paid-up Capital :	Rs.127.731 Millions
CIN No.: [Company Identification No.]	U74999HR1985PLC034079
TAN No.: [Tax Deduction & Collection Account No.]	RKTG03318A / RKTG02547G
PAN No.: [Permanent Account No.]	AAACG4276B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture and sale of Drive Axle Assembly and related products.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 9900000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating constrained on account of company’s moderate financial risk profile and losses that company has incurred from its operational activities. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications: Apex court order may alter coal import dynamics. Traders go slowly on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn Business Empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M a M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Limited grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DENIED

Management Non Co-Operative (Tel No.: 91-129-4091100)

LOCATIONS

Registered Office/ Factory 1 :	Plot No. 270, Sector – 24, Faridabad – 121005, Haryana, India
Tel. No.:	91-129-4091100 / 2232531
Fax No.:	91-129-2230580
E-Mail :	ashish.kumar@gkndriveline.com
Website :	www.gkndriveline.com
Factory 2 :	Plot No. B-13, SIPCOT Industrial Park, Vaipur A and B, Oragadam, Sriperumbadur, Kancheepuram – 602105, Tamilnadu, India
Tel. No.:	91-44-27142380
Fax No.:	91-44-27142300
E-Mail :	info@gkndriveline.com
Factory 3 :	34 and 35, Industrial Area, Dharuhera – 122106, Haryana, India
Tel. No.:	91-1274-398000 / 242579
Fax No.:	91-1274-242581

DIRECTORS

As on 28.06.2013

Name :

Mr. Bharat Dev Singh Kanvar

Designation :

Managing Director

Address :

A-701, Eves Garden, Baner Road, Baher, Pune – 411 045, Maharashtra, India

Date of Birth/Age :

08.11.1956

Date of Appointment :

28.06.2013

DIN No.:

00428180

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	U74999PN2000PTC015131	DANA INDIA PRIVATE LIMITED	Managing director	17/12/2010	27/09/2005	04/01/2013	Active	NO
2	U74210PN2001PTC129657	DANA INDIA TECHNICAL CENTRE PRIVATE LIMITED	Managing director	13/12/2010	15/06/2007	04/01/2013	Active	NO
3	U34300MH1993PLC073227	SPICER INDIA LIMITED	Director	06/12/2010	06/12/2010	04/01/2013	Active	NO
4	U74899DL1995PLC070604	DRIVETECH ACCESSORIES LIMITED	Director	28/06/2013	14/03/2013	-	Active	NO
5	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Managing director	28/06/2013	14/03/2013	-	Active	NO

Name :

Mr. Dharam Vir Kapur

Designation :

Director

Address :

405, Arashana Apartment, Sector XIII, R.K. Puram, New Delhi - 110066, India

Date of Birth/Age :

09.09.1928

Date of Appointment :

28.06.2004

DIN No.:

00001982

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	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	05/08/2014	31/03/1988	-	Active	NO
2	U27109DL1901PLC022060	HONDA SIEL POWER PRODUCTS LIMITED	Director	31/03/1988	31/03/1988	-	Not Available for eFiling	NO
3	L29220MH1960PLC011773	ZENITH BIRLA (INDIA) LIMITED	Director	23/12/1988	23/12/1988	24/07/2013	Active	NO
4	L24239MH1939PLC002893	TATA CHEMICALS LIMITED	Director	29/09/1989	29/09/1989	27/07/2007	Active	NO
5	U74899DL1995PLC070604	DRIVETECH ACCESSORIES LIMITED	Director	07/07/1995	07/07/1995	29/06/2013	Active	NO
6	U40100HR1988PLC032877	Eastern India Powertech Limited	Director	17/07/1995	17/07/1995	31/03/2008	Active	NO
7	L17110MH1973PLC019786	RELIANCE INDUSTRIES LIMITED	Director	28/03/2001	28/03/2001	-	Active	NO
8	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Director	28/06/2004	28/06/2004	29/06/2013	Active	NO
9	L70101HR1963PLC002484	DLF Limited	Director	29/09/2006	21/04/2006	-	Active	NO
10	U40101DL2010PTC207559	SUNON ENERGY PRIVATE LIMITED	Director	26/08/2010	26/08/2010	-	Active	NO
11	U74999DL2011PTC219906	GSD Automation Private Limited	Director	27/05/2011	27/05/2011	-	Active	NO
12	U74140DL2014PTC265432	AMIDA CLEANTECH PRIVATE LIMITED	Director	26/02/2014	26/02/2014	-	Active	NO

Name :

Mr. Christophe Jean Philippe Jollivel

Designation :

Whole-time Director

Address :

46, Route De Fille, 72700 Spay, France

Date of Birth/Age :

31.01.1969

Date of Appointment :

28.06.2013

DIN No.:

06431185

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	U74999HR1985PLC034079	GKN DRIVELINE (INDIA) LIMITED	Whole-time director	28/06/2013	13/12/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ashish Kumar Pandey
Designation :	Secretary
Address :	H. No. A – 68, Ashoka Enclave II, Sector 37, Faridabad – 122 003, Haryana, India
Date of Birth/Age :	13.07.1975
Date of Appointment :	22.06.2010
PAN No.:	AKXPP2127N

MAJOR SHAREHOLDERS

As on 28.06.2013

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 28.06.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	97.13
Bodies corporate	0.05
Other top fifty shareholders	0.49
Others	2.30
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and sale of Drive Axle Assembly and related products.

Products :

Product Descriptions	ITC Code
Drive Axles Including Constant Velocity Joints	870850.00

PRODUCTION STATUS (As on 31.12.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity*
Drive Axle Assembly and Components including C. V. Joints	Sets	NA	2322000
Precision Forgings	Sets	NA	3600000

*Installed capacity is computed on a triple shift basis using a six day week and certified by the management and being a technical matter has been relied upon by the auditors.

Particulars	Units	Actual Production
Drive Axle Assembly	Sets	1920296
Others	Nos	272277

GENERAL INFORMATION

No. of Employees :	Information denied by management
Bankers :	· ICICI Bank · IDBI Bank · HDFC Bank Limited · Canara Bank · Standard Chartered Bank · The Hongkong and Shanghai Banking Corporation Limited · Citibank N.A.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building 8, Tower B, 8^th Floor, DLF Cyber City, Gurgaon-122022, Haryana, India
PAN No.:	AAFFP3698A
Ultimate Parent Company:	· GKN Plc., UK
Immediate Parent Company:	· GKN Driveline International GmbH, Germany
wholly owned subsidiary:	· Drivetech Accessories Limited · CIN No.: U74899DL1995PLC070604
Fellow Subsidiaries:	· GKN Driveline Japan Limited, Japan · GKN Do Brasil Ltda, Brasil · GKN Driveline Zumaia SA, Spain · GKN Driveline Vigo, Spain · GKN Arya Servicio , SA, Spain · GKN Driveline Lazpiur Limited, Spain · GKN Group Service Limited, UK · GKN Driveline Birmingham Limited, U.K · GKN Automotive Limited, U.K · GKN Holding plc, UK · GKN (United Kingdom) Plc. UK · AP Newall and Company Limited, UK · GKN Aerospace Services (Cowes), UK · GKN Freight Services, UK · GKN Gelenkwellenwerk Kailserslautern GmbH, Germany · GKN Service International GmbH, Germany · GKN Walterscheid Gmbh, Germany · GKN Driveline Trier GmbH, Germany · GKN Driveline Deutschland GmbH, Germany · GKN Driveline Firenze SpA, Italy · GKN Driveline Brunico, SpA, Italy · GKN Driveline North America, Inc, USA · GKN Driveline Malaysia Sdn Bhd, Malaysia · GKN Driveline Korea Limited, South Korea · GKN Driveline (Thailand) Limited, Thailand · GKN Driveline Manufacturing Limited, Thailand (Formerly GKN Driveline JTEKT Manufacturing Limited) · Unidrive Pty Limited, Australia · GKN Driveline Singapore Pte Limited, Singapore · GKN Driveline Slovenija, d.o.o, Slovenia · GKN Driveline SA, France · GKN Driveline Polska Sp.zo.o, Poland · GKN Sinter Metals Private Limited, India · Joint Ventures of GKN Plc, UK, the ultimate parent company · Shanghai GKN Drive Shaft Company Limited, China · Taiway Limited, Taiwan

CAPITAL STRUCTURE

As on 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12773061	Equity Shares	Rs.10/- each	Rs.127.731 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	127.731	127.731	127.731
(b) Reserves & Surplus	2,349.799	2,754.627	3,004.345
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2,477.530	2,882.358	3,132.076
(3) Non-Current Liabilities
(a) long-term borrowings	1,232.500	1,000.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.044	121.441
(c) Other long term liabilities	8.966	6.791	5.516
(d) long-term provisions	98.825	93.155	68.505
Total Non-current Liabilities (3)	1,340.291	1,099.990	195.462
(4) Current Liabilities
(a) Short term borrowings	66.477	111.488	287.267
(b) Trade payables	1,691.840	1,303.837	1,380.831
(c) Other current liabilities	617.952	426.355	347.034
(d) Short-term provisions	42.245	53.608	26.031
Total Current Liabilities (4)	2,418.514	1,895.288	2,041.163
TOTAL	6,236.335	5,877.636	5,368.701
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3,531.434	3,712.065	3,100.521
(ii) Intangible Assets	1.858	1.062	0.224
(iii) Capital work-in-progress	360.641	213.718	171.758
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.502	0.502	0.502
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	149.679	154.371	321.611
(e) Other Non-current assets	0.700	0.700	0.700
Total Non-Current Assets	4,044.814	4,082.418	3,595.316
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1,108.610	861.896	859.465
(c) Trade receivables	806.116	683.143	659.468
(d) Cash and cash equivalents	48.994	25.740	34.971
(e) Short-term loans and advances	224.767	222.567	219.376
(f) Other current assets	3.034	1.872	0.105
Total Current Assets	2,191.521	1,795.218	1,773.385
TOTAL	6,236.335	5,877.636	5,368.701

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.12.2013	31.12.2012	31.12.2011
	SALES
		Income		7,142.027	6,821.908	6,376.296
		Other Income		9.935	5.303	57.200
		TOTAL (A)		7,151.962	6,827.211	6,433.496
Less	EXPENSES
		Cost of Materials Consumed		4,197.670	4,308.521	3,873.206
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(57.734)	(46.838)	(34.215)
		Employee Benefits Expenses		817.970	655.324	475.323
		Other Expenses		1,862.654	1,734.010	1,510.543
		TOTAL (B)		6,820.560	6,651.017	5,824.857
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			331.402	176.194	608.639
Less	FINANCIAL EXPENSES (D)			188.094	106.864	22.297
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			143.308	69.330	586.342
Less	DEPRECIATION/ AMORTISATION (F)			548.179	440.445	360.909
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(404.871)	(371.115)	225.433
Less	TAX (H)			(0.044)	(121.397)	82.929
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(404.827)	(249.718)	142.504
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			2390.302	2640.020	2497.516
	BALANCE CARRIED TO THE B/S			1985.475	2390.302	2640.020
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	135.540	50.105	89.364
	TOTAL EARNINGS			135.540	50.105	89.364
	IMPORTS
			Raw Materials, Components and Spares	285.610	518.583	573.097
			Capital Goods	2215.857	1992.845	1571.724
	TOTAL IMPORTS			2501.467	2511.428	2144.821
	Earnings / (Loss) Per Share (Rs.)			(31.69)	(19.55)	11.16

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
PAT / Total Income	(%)	(5.66)	(3.66)	2.22
Net Profit Margin (PBT/Sales)	(%)	(5.67)	(5.44)	3.54
Return on Total Assets (PBT/Total Assets}	(%)	(6.89)	(6.55)	4.34
Return on Investment (ROI) (PBT/Networth)		(0.16)	(0.13)	0.07
Debt Equity Ratio (Total Debt /Networth)		0.52	0.39	0.09
Current Ratio (Current Asset/Current Liability)		0.91	0.95	0.87

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	127.731	127.731	127.731
Reserves & Surplus	3004.345	2754.627	2349.799
Net worth	3132.076	2882.358	2477.530
long-term borrowings	0.000	1000.000	1232.500
Short term borrowings	287.267	111.488	66.477
Total borrowings	287.267	1111.488	1298.977
Debt/Equity ratio	0.092	0.386	0.524

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	6,376.296	6,821.908	7,142.027
		6.989	4.693

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	6,376.296	6,821.908	7,142.027
Profit	142.504	(249.718)	(404.827)
	2.23%	(3.66%)	(5.67%)

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	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]	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 LOANS:

Particulars	31.12.2013 Rs. In Millions	31.12.2012 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from others	1232.500	1000.000
SHORT TERM BORROWINGS
Working capital loans from banks	0.000	2.500
Other loans and advances, others	66.477	108.988
Total	1298.977	1111.488

GENERAL INFORMATION

Subject was incorporated on July 25, 1985 and is engaged in the manufacture and sale of driveshaft’s to original equipment manufacturers in the automobile industry. The company has four manufacturing locations in India at Faridabad, Dharuhera, Oragadam and Pune. During the year the company commenced operations at Pune.

FINANCIAL PERFORMANCE:

The Company’s top-line and bottom line continued to grow during the year in spite of slowdown. The profit before interest, tax and depreciation (EBITDA) was 4.6% as compared to 2.6% in previous year mainly due to higher production of in house forging at the newly set up precision forging plant at Chennai and better operation excellence, though the Economic slowdown resulted in excess capacity and higher fixed cost.

However the profit before tax (PBT) is lower as compared to previous year mainly due to higher interest cost in view of capex spending on state of the art Long stem Tulip Manufacturing cell and depreciation was higher due to newly establish Pune plant.

The Directors are satisfied that the accounts represent the trading performance of the company and give a true and fair view of the state of affairs of the company as at December 31, 2013 and of the profit or loss of the company for that date. The annual accounts of the company for the year ended December 31, 2013 are enclosed with this Report.

OPERATIONS:

The year was focused on systems improvements like Safety, Program management, Supply Chain processes, ERP usage and Manufacturing Engineering standards in all the plants.

Constant Velocity Joint plant at Chennai made some good progress focused mainly during the last quarter in operational excellence in terms of OEE, lost time analysis, maintenance plan and shop management discipline, resulting in better production output. The year was marked with new launches of Hyundai, Ford & Nissan. The company commissioned best in class LST (Long Stem Tulip) manufacturing cell at Chennai during the latter part of the year. However, the company faced some challenges in respect to warranty concern with Toyota and delivery issue of Nissan resulting in premium freight expenditure.

Chennai Precision Forging plant ramped up successfully last year to reach 2.9 million forgings.

Pune plant got all customer approvals (Volkswagen, General Motors, Fiat, Bajaj abd Tata) and started serial production in August 2013. People development & trainings have been deployed to all people of the organization to bring them to the GKN standards expectations.

Dharuhera & Faridabad performed well in terms of quality and deliveries.

While the year was marked by challenges on several fronts, the company continued to take significant measures for long term benefits in the areas of expansion, product development, industrial relation and organization structure.

During the year sales, gross margin and EBITDA was higher than previous year. The company posted growth rate of 4.7% in terms of sales value and has supplied Driveshafts for 1.93 Mn cars during the year.

The company sales is expected to grow by 14% during 2014. The company faces many challenges in coming years such as safety culture, stabilize organization structure, focus on systems, and achieve operational performance, targets and ramp up its Long stem tulip production cell.

AUTOMOTIVE INDUSTRY AND OUTLOOK:

As per Society of Indian Automobile Manufacturers (Siam), passenger vehicle sales including cars, sports utility vehicles and vans in India slumped 6 per cent in 2013-14, marking the biggest rout in a decade. Car & SUV sales fell 5 per cent and van sales registered the biggest decline of 20 per cent. It is expected that sector will record positive growth in the new fiscal.

Although the government had announced a 4-6 per cent cut in excise duty in February' 14, it failed to lift the mood in a market weighed down by rising costs and higher interest rates. The auto industry, however, pegged hopes on a new, stable government reviving demand.

While the challenging times are expected to continue, going forward, India should see positive growth on the strength of new models, increase in contribution of sales of petrol vehicles and rural sales.

The World Bank has projected economic growth rate of 5.7 percentages for India in FY 2014-15 on the back of competitive exchange rate and much large investment going forward as compared to 4.4 percentages for FY 2013-14.

NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.10
UK Pound	1	Rs.99.05
Euro	1	Rs.79.03

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4ss
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	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		34

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.