MIRA INFORM REPORT

Report Date :

13.02.2007

IDENTIFICATION DETAILS

Name :	MRF LIMITED
Registered Office :	124 Greames Road, Chennai – 600 006, Tamilnadu
Country :	India
Financials (as on) :	30.09.2005
Date of Incorporation :	05.11.1960
Com. Reg. No.:	18-4306
CIN No.: [Company Identification No.]	L25111TN1960PLC004306
TAN No.: [Tax Deduction & Collection Account No.]	CHEM07088E
PAN No.: [Permanent Account No.]	AAACM4154G
Legal Form :	A Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of automobile tyres, automobile tubes, tread rubber, pre cured treads, bicycle tyres, bicycle tubes, rubberised tank tyres & boggie wheels, conveyor belting and speciality surface coatings.

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 30000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established, reputed and respectable company having fine track. Available information indicates high financial responsibility of the company and its’ directors. Fundamentals are strong and healthy. Market reputation is favourable. The company is progressing exceedingly well. Its’ payments are always correct and as per commitments. The company can be considered good for any normal business dealings.

LOCATIONS

Registered Office :	124 Greames Road, Chennai – 600 006, Tamilnadu, India
Tel. No.:	91-44-28292777
Fax No.:	91-44-28295087/28294089
E-Mail :	mrfmktg@vsnl.com mrfexpo@vsnl.com mrfmalt@md2.vsnl.net.in mrfshare@md3.vsnl.net.in
Website :	http://www.mrftyres.com
Overseas Office :	v P.O. Box 626871, Al Maktoum Hospital Road, Deira, Dubai, UAE Tel. 91-04-2239657 Fax. 91-04-2239660 E-mail. mrfdubai@emirates.net.ae Contact Person - Biju Abraham Thomas, General v 1764, Calvert Drive, Cuyahoga Falls, OHIO 44223 USA Tel. 91-001-330-9291594 Res. 91-001-330-9283096 Fax. 91-001-330-9290306 E-mail. jkillian@neo.rr.com
Factory 1 :	v Tiruvottiyur, Chennai, Tamilnadu, India v Vadavathoor, Kottayam Kerala, India v Usgao, Ponda, Goa, India v Icchiputhur, Arakonam, Tamilnadu, India v Sadasivapet, Medak, Andhra Pradesh, India v Eripakkam Village, Nettapakkam Commune, Pondicherry, India v Sipcot Industrial Complex, Gummidipoondi, Tamilnadu, India
Office :	C – 79, Ground Floor, Okhla Industrial Area, Phase – I, Delhi E-mail : mrfpaint.del@gnmds.global.ems.vsnl.net.in No. 2, Ground Floor, Plot No. 374, Build Arch Terrace, Sitla Devi Temple Road, Mahim Tel. No. 91-22-24463565 E-mail : mrfpaint.bby@gnbom.globalnet.ems.vsnl.net.in Tarapore Towers, Fifth Floor, 826, Anna Salai, Chennai, Tamilnadu, India E-mail : mrfpaint.mds@gnmds.globalnet.ems.vsnl.net.in No. 2, New Taratolla Road, Kolkata, West Bengal, India Tel. No. : 91-33-24589830 E-mail : imrfpaint.ccu@gncal.globalnet.ems.vsnl.net.in

DIRECTORS

Name :	Mr. K. M. Mammen
Designation :	Chairman & Managing Director
Age:	53 Years
Qualification :	B. A.
Experience :	29 Years
Date of Joining :	01.06.1985
Previous Employment :	Devon Machines (Private) Limited
Name :	Mr. Arun Mammen
Designation :	Joint Managing Director
Name :	Mr. K. M. Philip
Designation :	Whole-time Director
Age :	65 Years
Qualification :	B.A.
Experience :	44 Years
Date of Joining :	05.11.1960
Name :	Dr. K. C. Mammen
Designation :	Director
Name :	Mr. K. D. Parakh
Designation :	Director
Name :	Mr. Ashok Jacob
Designation :	Director
Name :	Mr. S. Nandagopal
Designation :	Director
Name :	Mr. V. Sridhar
Designation :	Director
Name :	Mr. Vijay R. Kirloskar
Designation :	Director
Name :	Mr. N. Kumar
Designation :	Director
Name :	Mr. Ranjit I. Jesudasen
Designation :	Director
Other Personal
Name :	Mr. D. M. Choksi
Designation :	Company Secretary
Name :	Mr. Ravi Mannath
Designation :	Additional Company Secretary
Name :	Mr. Kurian and Kurian
Designation :	Legal Advisors

BUSINESS DETAILS

Line of Business :	Manufacturing and Marketing of automobile tyres, automobile tubes, tread rubber, pre cured treads, bicycle tyres, bicycle tubes, rubberised tank tyres & boggie wheels, conveyor belting and speciality surface coatings.
Products :	Item Code No. (ITC Code) 4011 Product Description New Pneumatic Tyres of Rubber Item Code No. (ITC Code) 4013 Product Description Inner Tubes of Rubber Item Code No. (ITC Code) 401290.04 Product Description Tyre Flaps Item Code No. (ITC Code) 400610.00 Product Description Camel Black Strips for Retreading Rubber
Imports from :	Europe and Far East
Terms :
Purchasing :	L/C and Credit terms

PRODUCTION STATUS

PARTICULARS	Unit	Licensed Capacity	Installed Capacity	Actual Production
Automobile Tyres	Nos.	@	19772000	17596948
Automobile Tubes	Nos.	@	18600000	16052918
Tread Rubber	MT	7,946	8,943	1548
Pre-cured Treads	MT	@	24,000	5971
Bicycle Tyres	Nos.	20,00,000	20,00,000	--
Bicycle Tubes	Nos.	20,00,000	20,00,000	--
Rubberised Tank Tyres & Boggie Wheels	Nos.	15,000	15,000	--
Conveyor Belting	MT	@	3,000	2778
Specialty Surface Coatings	KL	@	2,000	2114

GENERAL INFORMATION

No. of Employees :

8077

Bankers :

v State Bank of India

v Chennai, Tamilnadu, India

Facilities :

	30.09.2005 [Rs In Millions]
Secured Loans
Term Loan From Bank [Secured by hypothecation of Specific items of machinery acquired]	430.000
Bank (Secured by hypothecation of stock-in-trade, stores and spare parts and book debts)	2565.700
Total	2995.700
Unsecured Loans
Fixed Deposits	410.700
From Banks – Commercial Paper	440.200
Term loan from bank	650.000
Dealers Security Deposit	1670.600
Sales Tax Deferral Scheme	932.400
Total	3940.400

Banking Relations :	Satisfactory
Auditors :	v Sastri & Shah Chartered Accountants Chennai, Tamilnadu v M. M. Nissim & Company Chartered Accountants Mumbai, Maharashtra
Associate :	v Tiruvottiyur, Chennai, Tamilnadu, India v Vadavathoor, Kottayam Kerala, India v Usgao, Ponda, Goa, India v Icchiputhur, Arakonam, Tamilnadu, India v Sadasivapet, Medak, Andhra Pradesh, India v Eripakkam Village, Nettapakkam Commune, Pondicherry, India v Sipcot Industrial Complex, Gummidipoondi, Tamilnadu, India
Subsidiaries:	v Funskool (India) Limited v MRF Corporation Limited v MRF International Limited
Membership :	v Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs. 90.000 millions
100000	Taxable Redeemable Cumulative Preference Shares	Rs.100/- each	Rs. 10.000 millions
GRAND TOTAL			Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4241143	Equity Shares	Rs.10/- each	Rs. 42.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.09.2005	30.09.2004	30.09.2003
SHAREHOLDERS FUNDS
1] Share Capital	42.400	42.400	42.400
2] Reserves & Surplus	7498.100	7191.700	6999.600
NET WORHT	7540.500	7234.100	7042.000
LOAN FUNDS
1] Secured Loans	2995.700	1663.200	1917.300
2] Unsecured Loans	4103.900	3940.400	2808.600
TOTAL BORROWING	7099.600	5603.600	4725.900
TOTAL	14640.100	12837.700	11767.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	5368.100	4192.200	3984.700
Capital work-in-progress	1519.900	1240.100	520.700
INVESTMENTS	137.500	762.100	751.100
Deferred Tax Assets	16.300	36.600	54.600
CURRENT ASSETS, LOANS & ADVANCES
Interest Accrued on investment	0.600	0.600	--
Inventories	5535.600	4820.400	4031.800
Sundry Debtors	4623.400	3983.600	3963.200
Cash & Bank Balances	460.200	367.200	402.600
Other Current Assets	2.100	1.600	1.600
Loans & Advances	1120.000	1364.200	1353.300
Total Current Assets	11741.900	10537.600	9752.500
Less :
Current Liabilities	3205.800	2924.000	2691.100
Provisions	937.800	1006.900	604.600
Total Current Liabilities	4143.600	3930.900	3295.700
Net Current Assets	7598.300	6606.700	6456.800
Miscellaneous Expenses	0.000	0.000	0.000
TOTAL	14640.100	12837.700	11767.900

PROFIT & LOSS ACCOUNT

PARTICULARS	30.09.2005	30.09.2004	30.09.2003
Sales Turnover [including other income]	29948.100	25938.200	21927.600
Profit/(Loss) Before Tax	553.400	429.000	1677.500
Provision for Taxation	150.300	141.00	503.700
Profit/(Loss) After Tax	403.100	288.000	1173.800
Export Value	4272.200	3555.300	3197.500
Import Value	4945.100	3442.400	2254.400
Total Expenditure	29352.90	25095.900	6993.400

SUMMARISED RESULTS

PARTICULARS	30.09.2006 [Full Year]
Sales Turnover	37388.500
Other Income	488.300
Total Income	37876.800
Total Expenditure	34929.400
Operating Profit	2947.400
Interest	492.700
Gross Profit	2454.700
Depreciation	1456.600
Tax	199.000
Reported PAT	799.100
Dividend (%)	2000.000

QUARTERLY RESULTS

PARTICULARS	31.12.2006 [1^st Qtr.]
Sales Turnover	10578.300
Other Income	37.800
Total Income	10616.100
Total Expenditure	9726.100
Operating Profit	890.000
Interest	111.200
Gross Profit	778.800
Depreciation	347.400
Tax	141.800
Reported PAT	289.600

Notes

2006-12 Quarter 1

Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (161.50) million Consumption of Raw Materials Rs 7492.90 million Staff Cost Rs 539.00 million Other Expenditure Rs 1855.70 million Tax indicate Provision for Taxation (including Fringe Benefit Tax & Net of Deferred Tax) EPS is Basic & Diluted 1. The above financial results which were reviewed by the Audit Committee, were taken on record by the Board of Directors at their meeting held on January 25, 2007. 2. Provision for Taxation has been made in respect of Income presently determined, subject to appropriate revision / adjustment on final determination of Income for the year. 3. Provision on account of revised Accounting Standard on Employee benefit (AS-15) issued by the ICAI has been made for on an estimated basis and there is no significant impact of the same on the results of the quarter ended December 31, 2006. The adjustment to opening revises required under the transitional provision of AS-15 will be made at the year end. 4. Figures have been regrouped wherever necessary. 5. Details of Number of Investor complaints for the quarter ended 31.12.2006: Beginning-0 Received-1 Disposed of-1

KEY RATIOS

PARTICULARS	30.09.2005	30.09.2004	30.09.2003
Debt-Equity Ratio	0.86	0.72	0.70
Long Term Debt-Equity Ratio	0.51	0.45	0.46
Current Ratio	1.68	1.83	1.90
TURNOVER RATIOS
Fixed Assets	2.24	2.21	2.04
Inventory	6.59	6.76	6.68
Debtors	7.93	7.53	6.74
Interest Cover Ratio	2.10	3.91	3.34
Operating Profit Margin(%)	5.25	6.88	8.92
Profit Before Interest And Tax Margin(%)	2.01	3.68	5.30
Cash Profit Margin(%)	3.99	5.04	6.29
Adjusted Net Profit Margin(%)	0.75	1.84	2.68
Return On Capital Employed(%)	4.99	8.95	12.17
Return On Net Worth(%)	3.47	7.70	10.47

STOCK PRICES

Face Value	Rs.10/- each
High	Rs.3980.00/-
Low	Rs.3870.00/-

LOCAL AGENCY FURTHER INFORMATION

History

MRF Limited, incorporated in 1960 to take over the business of the Madras Rubber Factory, MRF later went public in 1961. The company has its works at Chennai, Arakkonam, Medak, Kottayam, Pondicherry, Gummidipoondi and Goa. All MRF plants were accredited with ISO-14001 and its corporate funtions have been certified ISO-9001-2000 for its quality management.  

The company manufactures tyres and tubes in collaboration with Mansfield Tyres and Rubber, US. Its products include Nylogrip, Zigma, Tyredrome, etc. Its subsidiary companies are MRF Corp and MRF International. The company tyres are being exported to 75 countries worldwide. 

MRF diversified into conveyor belts in collaboration with Pierelli, Italy, and in 1991-92, tied up with Vapocure, Australia, to manufacture polyurethane paint formulations and later into tyre machines in collaboration with Abex, US. It also diversified into speciality surface coatings, conveyor belts and leather.  
It has launched a steel-belted premium radial tyre variant called MRF ZVTS'. While this tyre augments the company's overall range of radials, it also marks a step forward in terms of technology, performance and superior ride quality. It has become an original equipment supplier(OES) of radial tyres to Tata Indica. 

Volvo, the only MNC which has entered the truck market in India, is sourcing most of its tyre requirements from MRF. 

MRF was declared the most ethical company by 'Business Magazine' in its survey in 1999. 

The Company's speciality coatings has launched MRF Durothane, an economical, multi-purpose, 100% polyurethane for metal, wood and plastic surfaces in 2004. Further the company ha launched MRF Cento, an elegant 100% polyurethane finish for wood surface, both interior and exterior and this is available in both glossy and matte finishes. 

During 2004-2005, the companies expanded its reach by exporting its products to countries like Finland, Canada and Turkey. MRF commenced export of Motor Sport Tyres. The company also exported MRF Pre-Treads Bangladesh, Fiji and a few other countries. A company MRF Lanka (Private) was incorporated in Srilanka for the manufacture of Pre-treads and other related products during this period. The company also expanded its capacity of Automobile Tyres and Automobile Tubes from 17372000 Nos to 19772000 Nos and from 16000000 Nos to 18600000 Nos respectively during this period.

Volvo, the only MNC which has entered the truck market in India, is sourcing most of its tyre requirements from the company.

1946

A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).

1949

Although the "factory" was just a small shed without any machines, a variety of products, ranging from balloons and latex-cast squeaking toys to industrial gloves and contraceptives, were produced. During this time, MRF established its first office at 334, Thambu Chetty Street, Madras (now Chennai), Tamil Nadu, India.

1952

MRF ventured into the manufacture of tread rubber. And with that, the first machine, a rubber mill, was installed at the factory. This step into tread-rubber manufacture, was later to catapult MRF into a league that few had imagined possible.

1955

MRF soon became the only Indian-owned unit to manufacture the superior extruded, non-blooming and cushion-backed tread-rubber, enabling it to compete with the MNC's operating in India at that time.

1956

The quality of the product manufactured was of such a high standard that by the close of 1956, MRF had become the market leader with a 50% share of the tread-rubber market in India. So effective was MRF's hold on the market, that the large multinationals had no other option but to gradually withdraw from the tread rubber business in India.

1961

With the success achieved in tread rubber, MRF entered into the manufacture of tyres. MRF established a technical collaboration with the Mansfield Tire & Rubber Company of USA. Around the same time, it also became a public company. It set up a pilot plant for tyre manufacture at Tiruvottiyur, Madras (now Chennai).

1963

On June 12, 1963, India's first Prime Minister, Late Pandit Jawaharlal Nehru laid the foundation stone for the Rubber Research Centre at Tiruvottiyur to commemorate the inauguration of the Tiruvottiyur factory.

1964

With the commissioning of the main plant in 1964, MRF also made progress in the export of tyres. An overseas office at Beirut (Lebanon) was established to develop the export market, and it was amongst India's very first efforts on tyre exports. This year also marked the birth of the now famous MRF Muscleman.

1967

MRF became the first Indian company to export tyres to USA - the very birthplace of tyre technology.

1973

MRF scored a major breakthrough by being among the very first in India to manufacture and market Nylon tyres passenger tyres commercially.

1978

MRF developed the MRF Superlug-78, a sturdy tyre for heavy-duty trucks. The tyre was a significant improvement over its existing products, and went on to become the country's largest selling truck tyre in later years.

1979

MRF's turnover crossed INR one billion.

1980

MRF entered into a technical collaboration with the B.F. Goodrich Tyre Company of USA, which was involved with the development of tyres for the NASA space-shuttle. With this began a significant exercise in quality improvement and new product development.

MRF took a major policy decision to be aggressive on the racing circuits.

1983

MRF began a rapid product development programme for new vehicles entering India.

1984

Sales crossed INR two billion. MRF tyres were the first tyres selected for fitment onto the Maruti Suzuki 800 - India's first small, modern car.

1985

MRF Nylogrip tyres for two-wheeler vehicles were launched.

1986

MRF was selected by the National Institution of Quality Assurance for their most prestigious award. Pitted against 20 tyre companies worldwide, MRF also won 6 Quality Improvement Awards instituted by the B.F. Goodrich Tyre Company from USA.

1987

MRF crossed the INR three billion mark and also became the No. 1 tyre company in India. MRF Legend, the premium nylon car tyre was introduced.

1988

The MRF Pace Foundation was set up, with international pace bowler, Dennis Lillee as its Director. Not long thereafter, pace bowlers trained at the Foundation were selected for the Indian Cricket Team.

1989

By 1989, MRF was the clear market leader in every tyre segment. Once again, in recognition of excellence, MRF was awarded the Visvesvaraya Award for the Best Business House in South India and the Economic Times Harvard Business School Award for the Best Corporate Performance. MRF collaborated with Hasbro International USA, the world's largest toy makers, and launched Funskool India. The company also entered into collaborations with Vapocure, Australia to manufacture polyurethane paint formulations and with Pirelli for MUSCLEFLEX Conveyor & Elevator Belting.

1989

MRF launched the MRF ZIGMA CC Radial synchronising with the MRF World Series Cricket Tournament for the Jawaharlal Nehru Trophy sponsored by the company. The Chief Minister of Tamil Nadu, Dr. M. Karunanidhi, awarded MRF the Special Export Award. MRF also opened the MRF Tyredrome, India's first tyre company-owned wheel care complex at Madras (now Chennai).

1990

MRF brought the 6th World Cup Boxing Championship to Mumbai - the first of its kind - with 39 countries participating. The event was telecast live on TV networks worldwide.

1993

K. M. Mammen Mappillai was awarded the Padmashri Award of National Recognition for his contribution to industry - the only industrialist from South India to be accorded this honour until that time. MRF also became the first tyre company in India to cross the INR 10 billion mark. In addition, the company was voted by the Far Eastern Economic Review, as one of the ten leading Corporate Groups in India and a Leader in Asia.

MRF was selected as one of India's most admired Marketing Companies by the readers of the
A & M magazine.

1995

The company's turnover crossed INR 15 billion. MRF was chosen for fitment on the Daewoo Cielo. This year too MRF was voted by the Far Eastern Economic Review as one of the 10 leading Indian Companies.

1996

In the Golden Jubilee year, MRF's turnover crossed the INR 20 billion milestone. A special factory dedicated entirely to the manufacture of radials was started at Pondicherry. MRF Tyres were also chosen for fitment on the Ford Escort, Opel Astra and Fiat Uno. Further proof of its superior quality.

1999

MRF was declared the most ethical company by "Business World" magazine in its survey.

2000

MRF launched the Smile campaign on Indian roads.

2004

MRF's turnover crossed INR 30 billion mark

Financial

Despite unprecedented increase in cost of raw materials and their inability to pass on completely the increase in the cost to the customers, the Company has achieved satisfactory results due to cost cutting measures undertaken over a period of time. Two interim dividends of 30% each for the year ended 30th September, 2005 were declared by the Board of Directors on 21-07-2005 and on 25-10-2005. The Directors now recommend to the Annual General Meeting the declaration of Final dividend of 140% for the year ended 30-0§-2005. With this, the total dividend for the entire year works out to 200%. The total amount of dividends aggregates to Rs. 84.800 Millions. The Directors recommend that after making provision for taxation and proposed Dividend, the amount of Rs.306.400 Millions be transferred to General Reserve. With this, the Company's Reserves and Surplus stand at Rs. 7498.100 Millions. Industrial Relations The overall industrial relations in all their manufacturing plants were cordial and harmonious throughout the year and the production and productivity were maintained at the desired levels. Exports Company's exports for the year ended 30th September,2005 were at Rs. 4265.700 Millions as against Rs. 3549.900 Millions for the previous year. This works out to an increase of almost 21%.

Future plan of Action

Sophisticated models are being continuously introduced by the multinational automobile manufacturer in passenger car segment. The performance requirements are stringent for these tyres. Continuous R&D efforts are being taken to meet the precise tolerances required by the original equipment manufacturers. New products for the specific requirement of the automobile sector for both domestic and export markets are continuously developed. There is a tremendous growth In the export market including PCTR. R&D efforts are taken to meet the stringent global standards as demanded by the foreign companies. R&D efforts are also taken to optimize the processing stages for improving the capacity utilization. This would result in reducing the processing cost and meeting the productivity requirements. R&D efforts are taken for developing aircraft tyres to meet the defence requirement.

PERFORMANCE OF THE COMPANY

The sales turnover of the Company during the year has registered a growth of 13.96% from Rs.29932.400 Millions in 2003-04 to Rs.34109.400 Millions in 2004-05. The Gross Profit amounted to Rs.2025.000 Millions against Rs.2082.600 Millions in the previous year. After provision for depreciation, interest and income tax, the net profit for the year stood at Rs.403.100 Millions (after adjusting exceptional item) as compared to Rs.288.000 Millions (after exceptional item of expenditure) in the previous year. Profit for the current year includes profit on sale of investments amounting to Rs.234.300 Millions . Export Incentives are lower during the current year since we have changed over from DEPB to DEEC scheme of imports.

AWARDS RECEIVED DURING THE YEAR: 

The Company has received the Top Export Award from AIRIA and Special Export Award from CAPEXIL for the year 2003-2004. 

The company imports raw materials, components & spares parts and capital goods.

It is in trade terms with:-

v R. Mendez & Sons

v Span Chemicals

v Rotomech Industry

v Continental Equipment India Private Limited

v Aristo Packers Private Limited

v Noble Synthetics Limited

v Blue Bell Polymers

v Synthetic & Polymers

v Gopal Metal Containers

v SPGC Metal Industries Private Limited

v Laffans Petro Chemicals Limited

v Raveshia Pigments Limited

v Insap Engineers Private Limited

Fixed Assets :

Land and Building, Plant and Machinery, Moulds, Vehicles Others.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30th SEPTEMBER, 2006 [Rs in Millions]				CONSOLIDATED FINANCIAL RESULTS
	9 Months  ended  30/06/06	3 Months  ended  30/09/06	Year ended  30/09/06	Year ended 30.09.06
Sales/Income from operations (Including Export Incentives)	30536.800	11946.300	8933.700	42484.100
Less: Excise Duty	3621.300	1473.300	1064.200	5094.600
Other Income	63.200	61.000	126.200	123.400
Total Expenditure
a) (Increase)/Decrease in stock in trade	57.200	50.200	(179.500)	106.400
b) Consumption of raw materials	18711.500	7439.700	5832.100	26152.900
c) Staff Cost	1436.100	565.200	457.900	2002.400
d) Other Expenditure	4936.100	1737.400	1571.400	6671.600
Interest	363.200	129.500	94.800	492.900
Depreciation	1043.300	413.300	319.100	1457.300
Profit before tax (1+2-3-4-5)	435.300	198.700	199.900	629.400
Add/(Deduct): Exceptional Item	--	364.100	(41.800)	364.100
Profit Before Taxation	435.300	562.800	158.100	993.500
Provision for Taxation (including Fringe Benefit Tax and Net of Deferred Tax)	156.000	43.000	44.600	200.500
Net Profit (8-9)	279.300	519.800	113.500	793.000
Paid-up Equity Share Capital (Face Value of Rs.10/- each)	42.400	42.400	42.400	42.400
Reserves Excluding revaluation reserves	--	--		8200.300
Basic and diluted EPS for the period	Rs. 65.85	Rs. 122.56	Rs.56.77	Rs.186.98
Aggregate of non-promoter shareholding -
No. of Shares	3120129	3121679	3132168	3121679
% of Shareholding	73.57 %	73.61 %	73.85%	73.61%

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED [Rs in Millions]				CONSOLIDATED FINANCIAL RESULTS
	9 Months  ended  30/06/06	3 Months  ended  30/09/06	Year ended  30/09/06	Year ended 30.09.06
Segment Revenue
(a) Rubber Products	26662.700	10464.200	37126.900	26152.900
(b) Others	316.000	69.800	385.800	386.400
Total	26978.700	10534.000	37512.700	37512.900
Segment Results - Profit Before Tax and Interest from each segment
(a) Rubber Products	753.000	336.100	1089.100	1084.100
(b) Others	45.500	[7.900]	37.600	38.200
(c) Exceptional Item	--	364.100	364.100	364.000
Total	798.500	692.300	1490.800	1486.400
Less: Other Unallocable, expenditure (net of unallocable Income)	363.200	129.500	492.700	492.900
Total Profit Before Tax	435.300	562.800	998.100	993.500
Capital Employed (Segment Assets - Segment Liabilities)
(a) Rubber Products			14897.000	14886.900
(b) Others			136.700	150.500
Total Rubber Products include Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt			15036.700	1503.7400

Notes:

The above financial results which were reviewed by the Audit Committee, was taken on record by the Board of Directors at their Meeting held on 20th December, 2006.

The Board has recommended a Final dividend of 140 % for the year ended 30.09.2005, which along with the two interim dividends of 30% each already paid, works out to 200%.

Provision for Taxation has been made in respect of Income presently determined, subject to appropriate revision/adjustment on final determination of Income for the year.

Details of Number of Investor Complaints for the quarter ended 30.09.2006 - beginning-0, received-5, disposed of-5.

Figures have been regrouped wherever necessary.

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.44.17
UK Pound	1	Rs.86.10
Euro	1	Rs.57.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--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		76

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