MIRA INFORM REPORT

Report No. :	307108
Report Date :	13.02.2015

IDENTIFICATION DETAILS

Name :	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED (w.e.f. 06.05.2010)
Formerly Known As :	EMCON TECHNOLOGIES INDIA PRIVATE LIMITED (w.e.f. 01.08.2007) ARVIN EXHAUST INDIA PRIVATE LIMITED
Registered Office :	Karumuthu Center, 1^st Floor, No.634, Anna Salai, Chennai – 600035, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.04.1997
Com. Reg. No.:	18-037962
Capital Investment / Paid-up Capital :	Rs.140.000 Millions
CIN No.: [Company Identification No.]	U29130TN1997FTC037962
TAN No.: [Tax Deduction & Collection Account No.]	CHEA02562A
PAN No.: [Permanent Account No.]	AAACA8450F
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the business of manufacture of automotive exhaust systems, technical and related design services.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 1259000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There has been a dip in revenue for the current year. However, the company appears to be in sound financial position. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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

Management non co-operative

Contact No.:

LOCATIONS

Registered Office:	Karumuthu Center, 1^st Floor, No.634, Anna Salai, Chennai – 600035, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	jagadish.ram@emcontechnologies.com jagdish.ram@faurecia.com subramani.kuppuswamy@faurecia.com
Website :	http://www.faureciaemissionscontrolindia.com http://www.faurecia.com
Factory:	#86/1, Kumbalagodu Industrial Area, Phase II, Mysore Road, Bangalore – 560 074, Karnataka, India
Tel No.:	91-80-28437092/93/94
Branch Office :	17 and 18, Sengindram Industrial Area, Melrosapuram, S.P. Koil Post – 603 204, Kancheepuram District, India
Tel. No.:	91-44-67404999, 27464640, 27464633 , 27464620 , 71114900
Fax No.:	91-44-27464620

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Venkatesh Madhavan

Designation :

Director

Address :

4A, Mauli Towers, 92 CP Ramasamy Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

Date of Birth/Age :

15.05.1962

Date of Appointment :

15.06.2012

DIN No.:

00104932

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	U28910DL1991PTC127698	ANAND TECHNOLOGY RESOURCE PARK PRIVATE LIMITED	Director	13/10/2004	13/10/2004	-	Amalgamated	NO
2	U35999TN1997PLC039028	MANDO INDIA LIMITED	Managing director	01/01/2011	23/08/2006	-	Amalgamated	NO
3	U29130TN1997FTC037962	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED	Director	15/06/2012	15/06/2012	-	Active	NO
4	U50300TN2006FLC061618	Mando Automotive India Limited	Director	01/07/2014	20/08/2013	-	Active	NO

Name :

Mr. Mahendra Kumar Goyal

Designation :

Director Appointed in Casual Vacancy

Address :

18, Anand Farm, 25.3 KM, Palam Gurgaon Road, Gurgaon – 122 016, Haryana, India

Date of Birth/Age :

01.11.1969

Date of Appointment :

14.06.2013

DIN No.:

02605616

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	U74999MH1975PLC206199	ANAND AUTOMOTIVE LIMITED	Managing director	01/04/2012	20/01/2009	28/06/2013	Active	NO
2	U99999MH1962PLC012316	Anand I-Power Limited	Director	29/07/2009	27/05/2009	-	Active	NO
3	U29199HR2006PLC043262	FEDERAL-MOGUL BEARINGS INDIA LIMITED	Director	02/06/2009	02/06/2009	-	Active	NO
4	U29309TN1997PLC038508	VALEO FRICTION MATERIALS INDIA LIMITED	Director	27/09/2013	09/06/2009	-	Active	NO
5	U34300PN1997PLC107619	MAHLE BEHR INDIA LIMITED	Alternate director	07/08/2010	13/08/2009	15/12/2010	Active	NO
6	U99999MH1998PLC118876	HALDEX INDIA LIMITED	Director	30/09/2009	30/09/2009	14/06/2013	Active	NO
7	U34300MH1993PLC073227	SPICER INDIA LTD	Director	08/12/2009	08/12/2009	25/06/2013	Active	NO
8	U24222HR1996PLC033371	HENKEL TEROSON INDIA LIMITED	Director	27/09/2013	10/12/2009	-	Active	NO
9	U29117PN2001PLC018092	VICTOR GASKETS INDIA LIMITED	Director	27/07/2010	08/02/2010	-	Active	NO
10	U74899DL1966PLC004919	MAHLE FILTER SYSTEMS (INDIA) LIMITED	Alternate director	29/11/2012	02/06/2010	29/11/2012	Active	NO
11	U51909DL1992PLC049978	CHANG YUN INDIA LIMITED	Director	25/07/2012	30/03/2011	22/07/2013	Active	NO
12	L34101PN1961PLC015735	GABRIEL INDIA LIMITED	Director appointed in casual vacancy	27/05/2011	27/05/2011	25/10/2013	Active	NO
13	U50100TN2012PTC084043	Valeo Service India Auto Parts Private Limited	Director	25/09/2013	13/04/2012	-	Active	NO
14	U29130TN1997FTC037962	FAURECIA EMISSIONS CONTROL TECHNOLOGIES INDIA PRIVATE LIMITED	Director appointed in casual vacancy	14/06/2013	14/06/2013	-	Active	NO
15	L74899DL1954PLC002452	Federal-Mogul Goetze (India) Limited	Additional director	13/08/2014	13/08/2014	-	Active	NO
16	U29253PN2014PLC152540	ANAND I-SEAL LIMITED	Director	15/09/2014	15/09/2014	-	Active	NO

Name :

Mr. Thierry Paul Robert Clement Depoux

Designation :

Director

Address :

06, Avenue Lazare Hoche, Chaville, France – 92370

Date of Birth/Age :

05.11.1962

Qualification :

MBA

Date of Appointment :

19.03.2010

Date of cessation :

19.06.2014

DIN :

3041072

Name :

Mr. Seung Kyu Lee

Designation :

Director Appointed in Casual Vacancy

Address :

953, Jyung-ki-do, Yong In, South Korea – 446908

Date of Birth/Age :

08.07.1955

Qualification :

MBA

Date of Appointment :

08.06.2011

DIN :

03529687

Name :

Mr. Joel Fernand Carvalho

Designation :

Director Appointed in Casual Vacancy

Address :

43, Rue Pasteur, La Norville, France – 91290

Date of Birth/Age :

21.02.1975

Date of Appointment :

13.06.2013

DIN No.:

06630152

KEY EXECUTIVES

Name :	Mr. Jagadish Ram Chandrasekaran
Designation :	Secretary
Address :	No. 2, Bhavani Street, Bharath Nagar, Adambakkam, Chennai – 600 088, Tamilnadu, India
Date of Birth/Age :	27.06.1984
Date of Appointment :	31.03.2009
PAN No :	AHRPJ5072H
Name :	Mr. Mahendra Arivnd Killedar
Designation :	Manager
Address :	205, Kumar Paritosh, Karvenagar, Near Corporation Bank, Pune – 411 052, Maharashtra, India
Date of Birth/Age :	30.10.1968
Date of Appointment :	03.06.2010
PAN No :	ABRPK8633M

MAJOR SHAREHOLDERS

AS ON 28.09.2013

Names of Shareholders	No. of Shares
Faurecia Emissions Control Systems Korea Company Limited, South Korea	10360000
Asia Investments Private Limited, India	3640000
Total	14000000

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2013

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	74.00
Bodies corporate	26.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the business of manufacture of automotive exhaust systems, technical and related design services

Products :

Product Description	Item Code No.
Muffler assembly (Exhaust Pipe) CAT convertor and Down pipes side Impact beam Instrumental Panel Assembly	8708 92 00

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Information declined by the management.

Bankers :

· Axis Bank Limited, CMC, First Floor, Karumuthu Nilayam, No. 192, Anna Salai, Chennai – 600 002, Tamilnadu, India.

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India.

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
Rupee Term Loans from Banks	143.100	131.330
Short Term Borrowings
Term Loans from Banks	0.000	10.000
Loans repayable on Demand from Banks	169.140	98.900
Total	312.240	240.230

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	8^th Floor, Prestige Palladium Bayan, 129-140, Greams Road, Chennai – 600 006, Tamilnadu, India
PAN No.:	AAEFP5579P
Holding Company :	Faurecia Emissions Control Systems, Korea
Associates :	Asia Investments Private Limited
Fellow Subsidiaries :	· Faurecia Emissions Control Technologies Spain, S.L. · Faurecia ECT Netherlands BV · Faurecia Emissions Control Technologies (Chongqing) Co., Limited · FECT Technologies LLC, USA · Faurecia Emissions Control Technologies, Limeira Ltda · FECT Technologies (UK) · Faurecia Systemes D'Echappement · Faurecia Emissions Control Technologies Germany (Augsburg) GmbH · Emission Control Technologies South Africa (Cape Town) (Pty.) Limited · Faurecia Emission Control Technologies Thailand Limited · Faurecia Emission Control Technologies, MladaBoleslav · Faurecia Technology Centre India Private Limited · Faurecia Emissions Control Technologies Technical Centre India Private Limited · Faurecia Interior Systems India Private Limited · Faurecia Componenents Pisek, sro Czezh · Faurecia Service Groupe

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
32000000	Equity Shares	Rs. 10/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs. 10/- each	Rs.140.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	140.000	140.000	140.000
(b) Reserves & Surplus	300.620	276.650	225.910
(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)	440.620	416.650	365.910
(3) Non-Current Liabilities
(a) long-term borrowings	143.100	131.330	193.440
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	18.640	26.870	4.980
(d) long-term provisions	12.580	10.940	6.290
Total Non-current Liabilities (3)	174.320	169.140	204.710
(4) Current Liabilities
(a) Short term borrowings	169.140	108.900	70.070
(b) Trade payables	412.200	533.240	442.000
(c) Other current liabilities	203.490	141.220	115.390
(d) Short-term provisions	23.230	37.080	66.940
Total Current Liabilities (4)	808.060	820.440	694.400
TOTAL	1423.000	1406.230	1265.020
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	579.340	472.660	452.400
(ii) Intangible Assets	45.580	33.430	14.090
(iii) Capital work-in-progress	41.550	90.660	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)	6.240	4.200	13.130
(d) Long-term Loan and Advances	114.630	112.330	57.640
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	787.340	713.280	537.260
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	178.340	184.650	114.370
(c) Trade receivables	302.500	363.380	394.610
(d) Cash and cash equivalents	27.110	17.530	134.040
(e) Short-term loans and advances	127.710	122.460	70.790
(f) Other current assets	0.000	4.930	13.950
Total Current Assets	635.660	692.950	727.760
TOTAL	1423.000	1406.230	1265.020

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	6212.000	2670.800	2582.000
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		TOTAL (B)	NA	NA	NA
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		212.900	251.700	266.200
Less	FINANCIAL EXPENSES (D)		45.100	37.800	34.800
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		167.800	213.900	231.400
Less	DEPRECIATION/ AMORTISATION (F)		137.900	116.200	86.400
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		29.900	97.700	145.000
Less	TAX (H)		5.900	30.700	53.700
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		24.000	67.000	91.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		222.700	172.000	109.700
Less	APPROPRIATIONS
		Transfer to General Reserves	0.000	0.000	4.600
		Interim and Final Dividend	0.000	0.000	0.000
		Tax on Dividend	0.000	16.300	24.400
	BALANCE CARRIED TO THE B/S		246.700	222.700	172.000
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	4.000	7.480	20.760
		Services Rendered	0.000	0.000	98.370
	TOTAL EARNINGS		4.000	7.480	119.130
	IMPORTS
		Raw Materials	NA	254.290	395.120
		Stores & Spares	NA	6.360	3.260
		Capital Goods	NA	22.580	50.650
	TOTAL IMPORTS		NA	283.230	449.030
	Earnings Per Share (Rs.)		1.71	4.79	6.52

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.39	2.51	3.54
Operating Profit Margin (PBIDT/Sales)	(%)	3.43	9.42	10.31
Return on Total Assets (PBT/Total Assets}	(%)	2.17	7.45	11.58
Return on Investment (ROI) (PBT/Networth)		0.07	0.23	0.40
Debt Equity Ratio (Total Debt /Networth)		0.71	0.58	0.72
Current Ratio (Current Asset/Current Liability)		0.79	0.84	1.05

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	140.000	140.000	140.000
Reserves & Surplus	225.910	276.650	300.620
Share Application money pending allotment	0.000	0.000	0.000
Net worth	365.910	416.650	440.620
long-term borrowings	193.440	131.330	143.100
Short term borrowings	70.070	108.900	169.140
Total borrowings	263.510	240.230	312.240
Debt/Equity ratio	0.720	0.577	0.709

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2582.000	2670.800	6212.000
		3.439	132.589

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2582.000	2670.800	6212.000
Profit	91.300	67.000	24.000
	3.54%	2.51%	0.39%

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10486764	14/03/2014	100,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL  W, MUMBAI, MAHARASHTRA - 400013, INDIA	C01117381
2	10436076	31/05/2013	70,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W  , MUMBAI, MAHARASHTRA - 400013, INDIA	B79285714
3	10239057	31/05/2013 *	280,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL  W, MUMBAI, MAHARASHTRA - 400013, INDIA	B79938544
4	10167596	31/01/2014 *	191,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH,KARUMUTHU NILAYAM, NO.19  2 ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	C00387324
5	10015970	28/08/2006	4,170,002.00	FORD INDIA (P) LIMITED	S.P.KOIL POST,CHENGALPATTU,, KANCHEEPURAM - 603 2  04., KANCHEEPURAM - 603 204., TAMIL NADU - 603204,  INDIA	A03893252
6	10016208	28/08/2006	4,028,753.00	FORD INDIA (P) LIMITED	S.P.KOIL POST,CHENGALPATTU,, KANCHEEPURAM - 603 2  04., KANCHEEPURAM - 603 204., TAMIL NADU - 603204,  INDIA	A03892833
7	10016215	28/08/2006	488,826.00	FORD INDIA (P) LIMITED	S.P.KOIL POST,CHENGALPATTU,, KANCHEEPURAM - 603 2  04., KANCHEEPURAM - 603 204., TAMIL NADU - 603204,  INDIA	A03893609

* Date of charge modification

NOTE :

The given address has been shifted from Fagun Mansion, 26 C-IN-C Road, Chennai – 600 008, Tamilnadu, India to the present address.

OPERATIONS AND BUSINESS PROSPECTS

The company has achieved a turnover of Rs. 2,612.0 Million compared to Rs. 2,670.8 Million during the previous year. The reduction in the turnover for the current year is on account of a lower volume off take by all customers (Ford, Toyota, Renault Nissan and Tata).

Sustained deceleration in the economic growth, high inflation, higher fuel prices, reduced availability of finance and elevated interest rate regime continued to impact demand for the Indian auto industry in general. Raw material prices continued their upward march on back of rising commodity prices driven by weakening rupee against US Dollar.

During the year the Company has commenced SOP for new models for one of its major suppliers, Ford and Nissan. SOP for Toyota Corolla was launched in March 2014.

The company has been successful in acquiring 100% share of existing business and is aggressively and continuously striving to add new business from its current and new customers both in domestic and in overseas market thereby improving its market share by exploring and expanding the market.

The company has been successful in getting many major projects with OEMs such as Ford and Volkswagen. The commercial production of Ford B515 MCA will start in second Quarter of 2017 and Volkswagen Polo and Vento will start in second quarter of 2020.

The company has filed an application for compounding of offence for failing to get prior approval of Central Government for entering into transaction with Yutaka Autoparts Pune Private Limited a wholly owned subsidiary which was a private company in which there were common directors. This application is pending and is yet to be posted for hearing.

The company has continued to enjoy good reputation and high customer satisfaction by ensuring timely supply of quality products in high volumes to both its domestic and overseas customers.

Lean manufacturing principles supported by employee involvement culture continues to be the key focus for the company. Implementation of lean manufacturing concepts like single piece flow,, Kanban, Employee Involvement, etc has helped the company sustain its operational excellence. The Company has successfully implemented Faurecia Excellence System (FES), 7QB and QRQC in various areas of its operations.

As required under the Ministry of Corporate Affairs' General Circular 08/2014 No. 1/19/2013?CL?V dated April 4, 2014, the Financial Statements and other reports required to be attached to the Annual Report for FY 2013?14 are governed by the relevant provisions, schedules, rules of the Companies Act, 1956.

SEGMENT REPORTING

The Company has identified business segment as its primary segment. In accordance with Accounting Standard 17 - Segment Reporting, the Company has determined its business segment as " manufacture of automotive Exhaust Systems, Catalytic Converter and Instrumental panel reinforcement tubes and is supplying those to car manufacturers in India". Since the entire Company’s business is from manufacture of automotive Exhaust Systems, Catalytic Converter and Instrumental panel reinforcement tubes and is supplying those to car manufacturers in India, there are no other primary reportable segments. Thus, the segment revenue, segment results, total carrying value of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation and amortization during the year are all as reflected in the Financial Statements as at and for the year ended March 31, 2014.

The secondary segment by geographical segments is provided below based on location of customers.

FIXED ASSETS:

· Buildings

· Plant and Machinery

· Furniture, Fittings and Equipment

· Vehicles

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.62.43
UK Pound	1	Rs.95.02
Euro	1	Rs.70.63

INFORMATION DETAILS

Information Gathered by :	PAT
Analysis Done by :	SUC
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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		44

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.