MIRA INFORM REPORT

Report Date :

2^ND May 2006

IDENTIFICATION DETAILS

Name :	MOTOR INDUSTRIES COMPANY LIMITED
Registered Office :	Hosur Road, Post Box No 3000, Adugodi, Bangalore – 560030, Karnataka, India
Country :	India
Financials (as on) :	31.12.2004
Date of Incorporation :	12^th November 1951
CIN No.:	U85110KA1951PTC000761
Com. Reg. No.:	08-761
TAN No.: (Tax Deduction & Collection Account No.)	BLRM01746D
Legal Form :	Public limited liability company. The company’s shares are listed on the Stock Exchanges. Subject is a 56.99% subsidiary of Robert Bosch GmbH, Germany
Line of Business :	Manufacturing and Marketing of pumps, Injectors, Nozzles, Starter motors, Spark plugs, Alternators, Blaupunkt car audio systems, Electric power tools, Special purpose machines, Packing machines, Automotive accessories and Bosch automotive products.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 50000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company is a part of Robert Bosch GmbH, Germany, a well-established and reputed multi-national industrial house. Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is good. Fundamentals of the company are strong and healthy. The Company has been making good progress in its performance. Payments are always correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Post Box No 3000, Hosur Road, Adugodi, Bangalore – 560030, Karnataka, India
Tel. No.:	91-80-22992111/22220088
Fax No.:	91-80-22272728
E-Mail :	bertling.h@pcm.bosch.de cavale.kr@pcm.bosch.de
Website :	1) http://www.pcm.bosch.de 2) http://www.micoindia.com
Mumbai Office :	Crystal Building, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharahstra
Tel. No.:	91-22-24930452/24951831
Fax No.:	91-22-24973924/24982052
Factory :	Located at v Naganathapura Plant, P.B.No.6887, Electronic City Post Office, Bangalore – 560 100, Karnataka, India v Nashik, Maharashtra v Jaipur, Rajasthan v Naganathapura, Karnataka

DIRECTORS

Name :	Hubert Zimmerer
Designation :	Chairman
Name :	M Lakshminarayan
Designation :	Joint Managing Director
Name :	V K Viswanathan
Designation :	Joint Managing Director
Name :	J J Irani
Designation :	Director
Name :	Bernd Bohr
Designation :	Director
Name :	Albert Hieronimus
Designation :	Managing Director
Name :	Deepak S Parekh
Designation :	Director
Name :	Bernhard Steinruecke
Designation :	Director
Other Personal
Name :	B S Iyer
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoter's Holding
Foreign Promoters	1940626	60.55
Person Acting in Concert	129	0.00
Sub Total	1940755	60.55
Non Promoter's Holding
Institutional Investors
Mutual Funds and UTI	142186	4.44
Banks Fin. Inst. and Insurance	695882	21.71
Fll's	5	0.00
Sub Total	838073	26.15
Other Investors
Private Corporate Bodies	62312	1.94
NRI's/OCB's/Foreign Others	27938	0.87
Sub Total	90250	2.82
General Public	336068	10.49
Grand Total	3205146	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Marketing of pumps, Injectors, Nozzles, Starter motors, Spark plugs, Alternators, Blaupunkt car audio systems, Electric power tools, Special purpose machines, Packing machines, Automotive accessories and Bosch automotive products.
Products :	Item Code No. (ITC Code) 84.08 & 84.09 Product Description Fuel Injection Equipment & Components Item Code No. (ITC Code) 85.11 Product Description Spark Plugs Item Code No. (ITC Code) 85.11 Product Description Auto Electrical Items
Exports to :	Bangladesh, Brazil, Germany, Malaysia, Philippines, Saudi Arabia, Singapore, Thailand, U.A.E. and U.S.A.
Imports from :	Germany, Japan and U.S.A

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Fuel Injection Equipment	Pcs. (‘000)	2108
Spark Plugs	Pcs. (‘000)	32482
Auto Electricals	Pcs. (‘000)	584
Hydraulics & Pneumatic Equipments	Pcs. (‘000)	60
Portable Electric Power Tools	Pcs. (‘000)	70
Injectors, nozzles and nozzle holders		8393
Special Purpose Engines	Nos.	118
Spares & Components	Pcs. ('000)	24968
Tools, Gauges, Jigs & Fixtures	Rs. Million	302
Car Stereos	Pcs. ('000)	60

GENERAL INFORMATION

No. of Employees :	9856
Bankers :	· State Bank of India, Bangalore, Karnataka, India · Canara Bank, Bangalore, Karnataka, India · Citibank, N.A., Bangalore, Karnataka, India · Deutsche Bank AG, Bangalore, Karnataka, India
Banking Relations :	Good
Auditors :	S. R. Batliboi & Company Chartered Accountants ‘Divyasree Chambers’, A Wing, 2^nd Floor, Langford Road, Bangalore-560027, Karnataka, India
Associates :	· Motor Industries Software Services Limited · Motor Industries Trading Limited
Parents Company :	v Robert Bosch GmbH, Germany
Membership :	v Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3,805,145	Equity Shares	Rs.100/- each	Rs.380.515 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,205,000	Equity Shares	Rs.100/- each	Rs.320.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2004	31.12.2003	31.12.2002
SHAREHOLDERS FUNDS
1] Share Capital		320.500	320.500	320.500
3] Reserves & Surplus		12218.700	8833.400	6734.400
NETWORTH		12539.200	9153.900	7054.900
LOAN FUNDS
1] Secured Loans		244.100	182.000	313.500
2] Unsecured Loans		1234.700	792.600	434.400
TOTAL BORROWING		1478.800	974.600	747.900
DEFERRED TAX LIABILITIES
TOTAL		14018.000	10128.500	7802.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1946.900	1927.300	2290.200
Capital work-in-progress		643.500	143.700	164.900
INVESTMENT		5540.900	2914.700	1666.800
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2841.000	2213.000	1520.100
	Sundry Debtors	2141.800	2003.500	1794.700
	Cash & Bank Balances	4958.200	4891.600	3351.400
	Loans & Advances	3690.300	2361.300	2478.400
Total Current Assets		13631.300	11469.400	9144.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4961.800	3974.000	3406.700
	Provisions	2782.800	2352.600	2057.000
Total Current Liabilities		7744.600	6326.600	5463.700
Net Current Assets		5886.700	5142.800	2680.900
MISCELLANEOUS EXPENSES		0.00	0.00	0.00
TOTAL		14018.000	10128.500	7802.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2004	31.12.2003	31.12.2002
Sales Turnover [including other income]	27719.000	2,2376.600	17720.700
Profit/(Loss) Before Tax	5635.400	3835.900	2004.600
Provision for Taxation	1887.700	1485.500	664.000
Profit/(Loss) After Tax	3747.700	2350.400	1340.600
Export Value	NA	NA	2489.500
Total Expenditure	21259.300	17558.100	14662.100

SUMMARISED RESULTS

PARTICULARS	31.12.2005
Type	Full Year
Sales Turnover	3,0891.900
Other Income	218.200
Total Income	3,1110.100
Total Expenditure	2,4332.300
Operating Profit	6777.800
Interest	-493.200
Gross Profit	7271.000
Depreciation	1980.900
Tax	1726.400
Reported PAT	3430.700
Dividend (%)	1200.000

QUARTERLY RESULTS

PARTICULARS	31.03.2006
Type	1st Qtr
Sales Turnover	9230.700
Other Income	147.800
Total Income	9378.500
Total Expenditure	7225.500
Operating Profit	2153.000
Interest	-113.200
Gross Profit	2266.200
Depreciation	547.800
Tax	642.300
Reported PAT	1149.100

200603 Quarter 1 –

Notes Net Sales Includes Net Sales Rs 9051.60 million Other operating Income Rs 179.10 million Other Income Indicate Non Operating Income Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (4.50) million Consumption of Raw Materials & Trade goods Rs 4586.80 million Staff Cost Rs 1033.70 million Other Expenditure Rs 1606.30 million Extraordinary Items Indicates Other Items Tax Includes Current Tax Rs 685.00 million Deferred Tax debit/(credit) Rs (73.00) million Tax adjustment relating to earlier years Rs (42.70) million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended March 31, 2006. Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 03 Complaints disposed off during the quarter 03 Complaints unresolved at the end of the quarter Nil 1. Other items consist of the following For the quarter ended on March 31, 2006 Profit/(loss) on sales/diminution of investments Rs (3.20) million Profit on sale of property Rs 85.60 million 2. Provision for Current Tax includes provision for Fringe benefit Tax of Rs 17.00 million. 3. Previous years/periods figures have been regrouped/recast, wherever necessary, to conform to current year/period classification.

KEY RATIOS

PARTICULARS	31.12.2004	31.12.2003	31.12.2002
Debt-Equity Ratio	0.11	0.11	0.09
Long Term Debt-Equity Ratio	0.09	0.08	0.07
Current Ratio	1.73	1.70	1.65
TURNOVER RATIOS
Fixed Assets	1.76	1.47	1.23
Inventory	10.22	11.26	10.77
Debtors	12.46	11.06	8.50
Interest Cover Ratio	134.54	77.87	30.09
Operating Profit Margin(%)	25.81	23.33	18.36
Profit Before Interest And Tax Margin(%)	21.98	18.49	12.10
Cash Profit Margin(%)	18.33	16.02	14.09
Adjusted Net Profit Margin(%)	14.51	11.19	7.83
Return On Capital Employed(%)	47.03	43.34	28.32
Return On Net Worth(%)	34.55	29.00	20.01

STOCK PRICES

Face Value	Rs. 100 /-
High	Rs. 3350.00/-
Low	Rs. 3250.00/-

LOCAL AGENCY FURTHER INFORMATION

Subject has a market share of 80% in diesel fuel injection pumps. It is the domestic leader in spark plugs with a market share of around 85%.

Motor Industries Company Ltd.(MICO), incorporated in 1951 as a subsidiary of Robert Bosch AG, Germany is India's largest auto-ancillary company. This ISO 9001 certified company which was initially incorporated to manufacture spark plugs for petrol engines and fuel injection equipment for diesel engines the company produces wide ranges of auto ancillary products which includes delivery valve nozzles, nozzle holders, filters, filter inserts, glow plugs, glow indicators, glow resistors, starter motors, etc. It is one of the world largest manufacturer of diesel fuel injection equipment. It is also dealing in industrial equipment, auto-electrical, gear pumps for tractor applications, electric power tools, packaging machines, security technology products and Blaupunkt car multimedia systems. Robert Bosch, Germany, holds a majority 56.99% stake in the company. 

 In 1985, MICO introduced the bi-metal electrode spark plug for petrol engines. It also took steps to develop a manufacturing programme to produce 59,500 multi-cylinder fuel injection pumps. The company diversified into starter motors and alternators. It set up the Bosch Global Development Centre to design and develop small single-cylinder pumps for the entire Bosch group. MICO has launched products like fog lamps, halogen lamps, stop lamps, tail lamps and horns. The company has designed and developed fuel injection systems with emphasis on reduction in both emission and fuel consumption. 

 The company has expanded its product mix in India with an investment of about Rs 500 cr. The company had set up a manufacturing base for fuel injection equipment with an investment of over Rs 200 cr. The Government of Karnataka has extended a package of incentive for the proposed expansion/diversification project. 

 It entered into a MOU with the Rajasthan Govt. to set up facilities near Jaipur to manufacture auto ancillaries/components including fuel injection equipment. The Jaipur plant was inaugrated and the civil work for the Application Development Center is nearing completion. For the ninth year in succession the MICO Vocational Center at Bangalore was adjudged the best establishment in the All India Skills Competition. It intorduced three contemporary models of Car Audio Systems belonging to Blaupunkt 99 range. 

 MICO made a buyback of shares in February 2002 of 200,000 equity shares of Rs.2500 per share. It had concluded the first tranche of share buyback in May 2000 at Rs 4,200 per share. In Nov.'2000, it obtained approval to buy back another two lakh shares, representing 5.55% of its capital at Rs 3,800 per share. The company has drawn up a total outlay of Rs 760.00 millions for the buyback, to be financed out of the free reserves. 

 The Bangalore, Nashik and Naganathapura plants were re-certified for QS 9000. The car radio assembly line at the Naganathapura plant achieved the QS 9000 certification. With a view to intensifying customer orientation, a new initiative called BeQIK has been introduced as in Bosch. BeQIK is the Bosch global guiding principle providing the overall vision for change within Bosch worldwide. 

 During 2001-02 the Nashik Plant successfully commissioned the shifting of production facilities from Robert Bosch in Brazil,Turkey & France for the manufacture of Nozzles and Nozzle Holder Assemblies. The installed capacities of Fuel injection Equipment were increased to 2131000 Pcs in 2002. To cater to the Indian market, 'Terra-25' a vertical form, fill and seal machine was introduced by Packaging Machinery division. The Mobile Communication Division has launched 'Velocity' range of car audio accessories such as speakers,woofers & MP3 players.

Business Situation: 

 The Company had a second consecutive successful year wit] growth in sales volumes in almost all segments: both automotive and non-automotive. 

 The Indian automobile market continued to grow in the year 2004, driven by the overall improvement in the economy, increased purchasing power, continued easy availability of finance, higher spending on infrastructure projects, etc., resulting in a substantial increase in the demand for MICO products. In addition, the Company secured new projects and gained market share to post an impressive overall 36% growing in OE sales. This growing in the OE segment was complemented by healthy growth rates in the other businesses like Power Tools, Car Multimedia, Security Technology, Packaging Machines and Special Purpose Machines. However, the automotive after market business of the Company faced a challenging market environment due to severe competition from local players and continuing grey imports and declining part replacement frequencies. Despite this environment the Company retained its leading market position in the after market segment. 

 MICO established itself as a reliable partner in the international production network of Bosch with its high quality and productivity. This gave a good platform for further growth in its exports to Germany, France, Austria, the Czech Republic, UK and USA with exports constituting 17% of total sales. 

 As in the previous year, the volume growth in 2004 in production could be met through improvements in productivity. Stringent control over costs, working capital and capital expenditure, focus on cost reduction and value engineering measures continued to partly neutralize the increasing cost of raw materials like steel and aluminium. These measures resulted in a significant positive impact on the operating results enabling the Company to post an increase in operating profit from 19.5% of sales in 2003 to 21.8% in 2004. 

 The introduction of Bharat Stage II emission norms (equivalent of Euro II norms) all over India from 2005 will significantly affect the demand for In-line Pumps, leading to surplus manpower and fixed assets. As a part of the ongoing exercise for restructuring the operations, a further provision of Rs.250 millions. has been made in the year under report. 

 After a detailed analysis and review, the Company has taken strategic decisions to prepare for the future and to secure its leadership position in the automobile components market. 

 The latest in Diesel Fuel Injection technology, the Common Rail System, is emerging as a preferred solution for auto industry in India to achieve as a further step, the Bharat Stage III emission norms (equivalent of Euro III norms). In order to lead the technological change in the market and to strengthen its market position, the Company will set up manufacturing facilities for the Common Rail System in India apart from reinforcing the application and testing facilities for these products. Efforts are under way to set up facilities that will meet the local demand as also supplement the Bosch manufacturing capacities worldwide to supply parts for the overseas markets. 

 Start of production of various components is scheduled over the period 2005 to 2007. A total investment of Rs. 5,500 millions. has been earmarked towards this objective: The High Pressure Pump for the system will be produced in Bangalore supported by Injectors' production in Nashik. The first Common Rail System is expected to roll out in early 2006. 

 The Common Rail System which has turned out to be a success story for Bosch will contribute to making diesel cars cleaner, economical, more quiet and sportier than ever. This technological expertise and global experience at Bosch will help the Company to gain a leading position in the Common Rail diesel market in India. The Company has offered this system to all manufacturers in India and has already secured some major projects, the details of which cannot be disclosed at this stage due to confidentiality agreements with customers. 

 As a result of planned increases in investments during the years 2005-07 for manufacture of Common Rail Systems and due to the change in product mix comprising increase in volume of Distributor Pump and significant fall in demand for In-line Pumps, the net profits for the years 2005 and 2006 is expected to decline from the 2004 levels. 

 The Power Tools division of the Company took up several new marketing initiatives. The Accident Relief Kit launched for the Railways has been received well. The product range was further improved with the launch of the Lawn and Garden Tools. The first Bosch Power Tools Shoppe in India became operational in Secunderabad. This is the first of its kind outside Europe. 

 The Packaging Machinery division plans, designs, manufactures and installs complete packaging lines which enables to offer to the customers in the pharmaceutical, confectionery, cement and food industries, a 'one-stop' solution. This division recorded good sales of the TERRA - 25 Form, Fill and Seal Packaging Machine. As a new product, the world's fastest high speed Candy Wrapping Machine with a capacity for wrapping 2000 candies per minute was launched during the year. 

 The Industrial Equipment division added new customers both within and outside India. 

 The Security Technology division enlarged its client profile by supplying its Security, Fire & Communication products and systems for many prestigious projects/organizations like Delhi Metro Rail Corporation, power plants, airports, police departments, corporate, atomic power plants, legislative assemblies, etc. The division launched latest technology based products like CCTV over Internet Protocol, High End Cameras and Digital Video Recorders, Blue Line Sensors, Plena `Voice Alarm System', integrated security management platform called `Building Integration System'. 

 During the year, the Company embarked on a new journey - to drive its growth in the future and to deliver value for all its customers with aggressive support from Bosch. In this journey, Bosch will be an even more active partner to harness its technology, global expertise, innovation and leadership. The Company will in turn support Bosch through its skilled and trained manpower, good manufacturing know-how and long standing presence in the Indian market, established over the past 53 years. These efforts will translate into further business growth opportunities as well as transform the Company into a Research and Development Competence Center and a manufacturing hub for the Bosch Group. 

 The Company has an integrated information system and good IT infrastructure to cater to all locations through a secure and reliable international corporate network. Regular checks and information security audit in line with international standard practices ensure business continuity, protection of Bosch and MICO proprietary information and addresses emergency situations. 

 The implementation of SAP R3 project: 'SPECTRA' (Speed, Efficiency & Transparency), was commenced during the year for optimizing planning and operational efficiencies as also to adopt some of the best practices of Bosch. MICO Engineers specialized on SAP R3 are currently receiving the required training at the Bosch overseas offices and in India. The roll out of the SAP Project estimated in 2006 will address the requirements of users in Corporate Office, four manufacturing plants, Sales Offices and warehouses spread across the country. 

 Effective 1st January 2005, the Company acquired from Robert Bosch India Ltd., the business activities relating to Petrol Injection Systems consisting primarily of system application, development and manufacture of Electronic Control Units as well as the trading activity involving import and sale to Indian OE customers of components such as Electronic Control Units, Fuel Filters, Fuel Pumps, Temperature Sensors, Pressure Sensors, Valves, etc., as a going concern for an aggregate value of Rs.115 millions. 

INDUSTRY STRUCTURE AND DEVELOPMENT OPERATIONS: 

 India's GDP growth for fiscal year 2004-05 is estimated around 6%, on top of a robust growth of 8.2% in the previous year. A weak monsoon in 2004 led to negative agricultural growth (-2%), as against an above average 9.1% in the previous year. As agriculture constitutes 22% of total GDP, this had an adverse impact on the GDP growth. Nevertheless, the growth rates in Industrial sector and Services sector are estimated at a good 7% and 9%, respectively, thanks to strong fundamentals of the economy. Governmental spending on infrastructure projects continues to be a major factor for growth. 

 The automobile sector continues to grow at a fast pace. While car sales were 28% higher in 2004 than in the previous year, commercial vehicles sales grew at 29% despite the high price of crude oil, firmer interest rates or lower farm income. Diesel consumption increased at a steady pace of 4.5%. On the other hand, easy availability of credit, good industrial activity and adding of nearly 6,000 KMs of express-ways (Golden Quadrilateral) to the road network have had a positive impact on the demand for the commercial vehicles. Large capacities built by OEMs in the past are coming in handy now as they have been able to fully meet the increasing demand for commercial vehicles. Cars and multi-utility vehicles crossed the mark of one million for the first time in calendar year 2004. The launch of large number of new international models appear to be another factor which is boosting the car sales. Two wheelers also are selling at higher rate of 12%. After recovery from a long downward slide, the tractor industry is showing signs of a good growth. However, there still exists a large un-utilized capacity in this segment. 

 India is the largest producer of tractors, second largest producer of 2/3 wheelers in the world today. 

 The growth rate in different segments of the automobile sector in the last three years is shown below: 2002 2003 2004 

 Commercial Vehicles 24% 37% 31% 

 Tractors -3.5% -2.0% 40% 

 Cars & Multi-utility 

 Vehicles 2.9% 25% 29% 

 Source: Automobile Component Manufacturers Association & Society of Indian Automobile Manufacturers. 

 OPERATIONS: 

 The year 2004 was another year with many important milestones in MICO: 

 * The company recorded highest ever sales since its inception yet again. 

 * Most of our Diesel Fuel Injection equipments recorded double digit growth, thanks to the high demand from our OEM customers. Inline and Distributor Pumps recorded the highest ever production. 

 * The Auto Electrical business recorded a significant growth and improved its market share further. 

 * Non-automotive businesses such as Power Tools, Blaupunkt Car Audio, Security Systems, and Packaging Machinery also showed impressive growth. 

 * Exports crossed Rs.3,950 millions. the highest volume so far. Exports are largely to Bosch divisions worldwide. Export of Single cylinder pumps crossed Rs.1,000 millions. 

 * The quality performance could be significantly improved. 

 * The company achieved a substantial cost reduction in operating costs despite rising prices of steel, oil and other inputs. 

 The successful transfer of product lines and the corresponding business from other plants of Bosch to MICO has been a major factor in boosting the exports. 

 The automotive aftermarket is the only area where sales have remained more or less at the same level as last year. The reasons for this have already been discussed in the Directors' Report. 

 The Spark Plug business, which is suffering from falling demand in export markets due to progressively longer life of the new types and onslaught of spurious/ grey imports in the domestic market, achieved major savings by removing the excess manufacturing capacity and the attendant structural costs. However, it is yet to return to achieving profitability. Good growth of 2 and 3 wheelers as well as cars in India is expected to give a boost to this business in the near future. 

FINANCIAL PERFORMANCE: 

 The company's financial reflect the healthy trend seen all around in the Indian automotive industry. Higher volumes in the OE segment stretched plant capacities to the full extent. This had a positive effect on the bottom line. Higher production and sales were managed through improved productivity and higher capacity utilization. In Nashik and Jaipur plants, the demand beyond the manufacturing capacity was met by importing balancing components. As imports have longer lead time, this resulted in higher levels of inventory when compared to the previous year. However, the inventory turnover ratio (measured in number of days' coverage) has been maintained at the previous year level of 39 days. 

 With a view to ensure high level of quality of products, significant investment was made during the year in testing equipment. Further, to meet the increasing demand for Injectors, Distributor Pumps and Single Cylinder Pumps, investment was made to increase manufacturing capacity of these products. In all, Rs.1,300 Mio. was invested in the respective plants during the year. The breakup of these investments is as under: 

 Quality 21%Capacity 26%Environment 7%R&D 5%Services 24%Others 17% 

 Project start up costs and lead time for start of production has been kept to the minimum. Net surplus of the year has been prudently invested in financial instruments with high safety and liquidity with reasonable return. 

In addition to its ongoing technical collaborations for the manufacture of fuel injection equipments, spark plugs, auto electricals, etc., the company has entered into technical collaborations for the following products :

• Diesel In-Line Injection Pumps and Governors (1996)
• Compact Disc Changers, Car Radios / Cassette Compact Disc Players and Accessories (1998)
• Compact Alternators (1999)
• Cross Hatch Pattern Super-finishing Machines of the types 811 and 813 with NC controlled feeding of the Super-finishing units (1999)
• Testing Equipment for VE Test Benches (2000)
• CNC Grinding Center Jumaximat 520 (2000)

It’s exports are mainly to Bosch Group companies worldwide and has access to Bosch's sales network. It has opened a representative office at Bangkok, for developing the South East Asian market.

The company imports its requirements from Germany, Japan and U.S.A.

The company has Joint Venture/Collaboration with :

• Lisk, U.S.A.
• Maschinenfarbick Gehring GmbH, Germany
• Robert Bosch GmbH, Germany
• Subfina Greishaber, Germany
• Wifzig & Frank Turmatic GmbH, Germany

The company is in trade terms with :

· Abhishek Alloys Private Limited

· Accurate Engineering Private Limited

· Control Infotech Limited

· Kanthi Precision Private Limited

· Prasa Tools Private Limited

· Klass Engineering Private Limited

· Pragati Machine Tools Corporation

· Chemoleums Private Limited

· Race Technologies Private Limited

· Riviera Packers Private Limited

· Gole Precision Tools Private Limited

· Fastener Manufacturers Private Limited

· Mukund Industries

· Karnataka Electronics

· Jaycee Industries

· R. B. Associates Private Limited

· TA Hydraulics Private Limited

· Bhat Metal Research Private Limited

· Finetech Engineering

The company’s fixed assets of important value include Freehold & Leasehold Land, Buildings, Plant & Machinery, Furniture & Equipments and Motor 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 records 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 records 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.44.88
UK Pound	1	Rs.83.07
Euro	1	Rs.56.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		80

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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