MIRA INFORM REPORT

Report No. :	318379
Report Date :	23.04.2015

IDENTIFICATION DETAILS

Name :	GKN LAND SYSTEMS INDIA PRIVATE LIMITED (w.e.f. 07.03.2012)
Formerly Known As :	STROMAG INDIA PRIVATE LIMITED
Registered Office :	T-153, MIDC, Bhosari, Pune – 411026, Maharashtra
Tel. No.:	91-20-40769900
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.07.2007
Com. Reg. No.:	11-134626
Capital Investment / Paid-up Capital :	Rs.22.241 Million
CIN No.: [Company Identification No.]	U34200PN2007PTC134626
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	PNES21155B
PAN No.: [Permanent Account No.]	AALCS0999N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Exporter of Wind products.
No. of Employees :	22 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 2000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has processed below average operational performance which has resulted into losses incurred from its operational activities. Further, due to huge operational losses net worth of the company is highly impacted, which further credit risk to liquidity position of the company. However, trade relations are reported as fair. Payments are reported to be slow. 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 PARTED BY

Name :	Ms. Prisha
Designation :	Assistant Manager Account Department
Contact No.:	91-40-40769900
Date :	22.04.2015

LOCATIONS

Registered Office / Factory :	T-153, MIDC, Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-40769900
Fax No.:	Not Available
E-Mail :	ashutosh.nadkarni@gkn.com
Website :	www.gkn.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Ashutosh Vasant Nadkarni

Designation :

Director

Address :

A – 604, Magnum, Vasant Marvel, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra, India

Date of Birth/Age :

24.03.1966

Date of Appointment :

30.09.2013

DIN No.:

06426235

Name :

Mr. Kanwar Kartar Bharat Dev Singh

Designation :

Director

Address :

A – 701, Eves Garden, Baner Road, Baner, Pune – 411045, Maharashtra, India

Date of Birth/Age :

08.11.1956

Date of Appointment :

30.09.2014

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	U34300MH1993PTC073227	SPICER INDIA Private 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
6	U34200PN2007PTC134626	GKN LAND SYSTEMS INDIA PRIVATE LIMITED	Director	30/09/2014	22/08/2014	-	Active	NO

Name :

Rank Robert Friedrich

Designation :

Director

Address :

Hedwig, Koerling Strasse – 4, Arnsberg – 59755, Germany

Date of Birth/Age :

06.05.1963

Date of Appointment :

30.09.2013

DIN No.:

06696546

KEY EXECUTIVES

Name :	Ms. Prisha
Designation :	Assistant Manager Account Department

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
GKN Stromag AG, Germany	2224098
GKN Stromag Holding GMBH, Germany	1
Total	2224099

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Exporter of Wind products.
Products :	Brakes Clutches Controls Discs Disc brakes Driveshaft’s Electric and Hybrid
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Germany
Imports :
Products :	Raw Material
Countries :	Germany France
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Mahabal Metals, Sangali, Maharashtra, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Wind World India Limited, Daman, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

22 (Approximately)

Bankers :

Banker Name	HSBC Bank
Branch Address	Bund Garden, Pune, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Cash Credit facility repayable on demand	26.676	29.685
Total	26.676	29.685

Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	7th Floor, Business Bay, Tower A, Wing - 1, Airport Road, Yerawada, Pune – 411006, Maharashtra, India
PAN No.:	AADFP9359C
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	GKN Stromag AG
Sister Concern :	GKN Service International GKN Stromag Dessau GKN Stromag France

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
2224099	Equity Shares	Rs.10/- each	Rs.22.241 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	22.241	22.241	22.241
(b) Reserves & Surplus	(21.303)	(7.559)	0.076
(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)	0.938	14.682	22.317
(3) Non-Current Liabilities
(a) long-term borrowings	42.000	20.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.477	2.419	2.201
Total Non-current Liabilities (3)	44.477	22.419	2.201
(4) Current Liabilities
(a) Short term borrowings	26.676	29.685	30.033
(b) Trade payables	22.805	44.548	32.164
(c) Other current liabilities	5.017	32.800	13.584
(d) Short-term provisions	1.944	2.190	4.974
Total Current Liabilities (4)	56.442	109.223	80.755
TOTAL	101.857	146.324	105.273
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	35.448	42.622	11.636
(ii) Intangible Assets	0.144	0.041	0.332
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.136	3.901
(d) Long-term Loan and Advances	7.370	7.603	5.558
(e) Other Non-current assets	0.313	0.275	0.270
Total Non-Current Assets	43.275	50.677	21.697
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	28.838	27.781	46.427
(c) Trade receivables	27.115	64.712	33.426
(d) Cash and cash equivalents	1.823	1.588	1.671
(e) Short-term loans and advances	0.797	1.561	2.052
(f) Other current assets	0.009	0.005	0.000
Total Current Assets	58.582	95.647	83.576
TOTAL	101.857	146.324	105.273

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	135.639	152.954	194.357
	Other Income	0.903	10.728	3.674
	TOTAL (A)	136.542	163.682	198.031
Less	EXPENSES	134.828	156.703	185.706
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	1.714	6.979	12.325
Less	FINANCIAL EXPENSES (D)	5.711	5.829
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(3.997)	1.150	(Including Depreciation and Finance Expenses)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	9.610	5.021	4.032
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(13.607)	(3.871)	8.293
Less	TAX (I)	0.136	3.764	1.969
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(13.743)	(7.635)	6.324
	Earnings / (Loss) Per Share (Rs.)	(6.18)	(3.43)	2.84

Particulars	31.03.2015
Sales Turnover (Approximately)	170.000

Expected Sales (2015-16): Rs.200.000 Million

The above information has been parted by Ms. Prisha (Assistant Manager Account Department).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(10.13)	(4.99)	3.25
Operating Profit Margin (PBDIT / Sales)	(%)	1.26	4.56	6.34
Return on Total Assets (PBT/Total Assets}	(%)	(13.36)	(2.65)	8.18
Return on Investment (ROI) (PBT/Networth)		(14.51)	(0.26)	0.37
Debt Equity Ratio (Total Debt /Networth)		73.22	3.38	1.35
Current Ratio (Current Asset/Current Liability)		1.04	0.88	1.03

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	22.241	22.241	22.241
Reserves & Surplus	0.076	(7.559)	(21.303)
Net worth	22.317	14.682	0.938
long-term borrowings	0.000	20.000	42.000
Short term borrowings	30.033	29.685	26.676
Total borrowings	30.033	49.685	68.676
Debt/Equity ratio	1.346	3.384	73.215

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	194.357	152.954	135.639
		(21.303)	(11.320)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	194.357	152.954	135.639
Profit	6.324	(7.635)	(13.743)
	3.25%	(4.99%)	(10.13%)

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

Note:

The Registered address of the company has been shifted from the 1, Akshay 50, Anand Park, Aundh, Pune – 411007, Maharashtra, India to the present address w.e.f. 11.12.2009.

COMPANY OVERVIEW

Subject Company is a subsidiary of GKN Stromag AG, was incorporated under The Companies Act, 1956 of India on July 12, 2007. The Company’s primary business is to manufacture brakes for the windmill industry and trading of Limit Switches, Couplings, Clutches, and Spares thereof.

BUSINESS OPERATIONS

During the financial year 2013-2014, the overall market conditions of Wind Industry were not impressive. Due to economic constraints, stiff competition, increasing costs and lower margins, the Company could not improve its sales performance. The sales volume has dropped by more than 14% as compared to previous year. The company has incurred a net loss of Rs.13.743 Million as against Rs.7.635 Million.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Inter-corporate deposit from GKN Sinter Metals Private Limited	42.000	20.000
Total	42.000	20.000

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

• Plant and Machinery
• Office Equipment
• Computers
• 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.62.81
UK Pound	1	Rs.93.85
Euro	1	Rs.67.58

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	---
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.