MIRA INFORM REPORT

Report Date :

22.01.2007

IDENTIFICATION DETAILS

Name :	HINDUSTAN MOTORS LIMITED
Registered Office :	Birla Building, 10^th Floor, 9/1, Rajendra Nath Mukherjee Road, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	11.02.1942
Com. Reg. No.:	11-7655
TAN No.: [Tax Deduction & Collection	CALH01880E
PAN No.:	AAACH7328B
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of passenger cars, heavy commercial vehicles, utility vehicles, car engines, earthmoving equipments like dumpers, loaders etc., power shift transmission (power product division) and management consultancy services

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow by 30-60 days
Litigation :	Clear
Comments :	Subject is a well-established company of the G. P. Birla Group, but passing through difficult times. The company's profitability is under severe pressure. It continues to incur losses. General financial position is moderate. Payments are reported as slow and delayed. The company can be considered normal for any business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Birla Building, 9/1, Rajendra Nath Mukherjee Road, Kolkata – 700 001, West Bengal, INDIA
Tel. No.:	91–33–22201680/22480135/22484370/22482880/22420932
Fax No.:	91–33–22480055/22205708
E-Mail :	hmmkt.del@hm.sprintrpg.ems.vsnl.net.in mktgmis@nda.vsnl.net.in hm.cal@hm.sprintrpg.ems.vsnl.net.in rsrinivas@hmppd.com msrk@hmppd.com mukundan@hmppd.com
Website :	http://www.hmppd.com
Plant Locations :	Royal Arcade, 1^st Floor, 934, 16^th Main, MICO Layout, BTM, 2^nd Stage, Bangalore - 560 076, Karnataka Tel. 91-80-26782603/26782660 Fax. 91-80-26782613 E-Mail : cbmohan@hmppd.com subhash@hmppd.com samuel@hmppd.com Panapalli Village, Mathagondapalli Post, Hosur - 635 114, Dharmapur District, Tamilnadu, India Hindmotor, District Hooghly - 712233, West Bengal, India Adigathur, Kadambathur – 631023, Tiruvallur District Tamilnadu, India Pithampur, Sector 111, Sagore – 454 774, District Dhar, Madhya Pradesh, India
Corporate Office :	Gulab Bhawan, 6 Bahadur Shah Zafar Marg, New Delhi – 110 002, India Tel. No. : 91–11–23738201/02/03/04 Fax No. : 91–11–23324487 E-mail : hmmkt.del@hm.sprintrpg.ems.vsnl.net.in mktgmis@nda.vsnl.net.in 6-B, Grand South Trunk (GST) Road, St. Thomas Mount, Chennai – 600016, Tamil Nadu Tel : 91-44-22346651  Fax : 91-44-22342243
Group Headquarter :	Birla Tower, 8^th Floor, 25 Barakhamba Road, New Delhi - 110001, India Tel : 91-11-42092100 Fax : 91-11-42092198 Contact Person: Ms. Soni Shrivastav , General Manager Corporate Communications, CK Birla Group"

DIRECTORS

Name :	Mr. Chandra Kant Birla
Designation :	Chairman
Name :	Mr. A. Sankaranarayanan
Designation :	Director
Age:	59 years
Qualification:	B.E. (Mech.)
Experience:	37 years
Date of Appointment:	08.01.1997
Previous Employment:	The English Electric Company (India) Limited – General Manager (3 years)
Other Directorships :-	1. Hindustan Power Plus Limited 2. McNally Bharat Engineering Company Limited Birlasoft Limited Accord Group (India) Private Limited
Name :	Mr. R. Vasudevan
Designation :	Director – IDBI Nominee
Name :	Mr. Pradip Kumar Khaitan
Designation :	Director
Date of Appointment	21.12.1989
Qualification	B. Com, L.L.B., Attorney at Law (Bell Chambers Gold Medallist)
Other Directorships :-	Bata India Limited CESC Limited Dalmia Cement (Bharat) Limited Electrosteel Castings Limited Eveready Industries India Limited G. I. S. Limited Graphite India Limited India Glycols Limited Lanco Kalahasthi Castings Limited OCL India Limited Pilani Investment & Industries Corporation Limited South Asian Petrochem Limited Woodlands Hospital & Medical Research Centre Limited JP Morgan Securities India Private Limited Vaishakh Fintrade Private Limited
Name :	Dr. Anand C. Burman
Designation :	Director
Date of Appointment:	26.11.1997
Qualification:	B. Sc. (From the University of Wisconsins) M.Sc. (From the University of Kansas) Awarded Doctorate by University of Kansas
Other Directorships :-	Dabur India Limited Binaca Hygience Products Limited Interx Laboratories Private Limited Dabur Research Foundation Dabur Pharmaceuticals Limited Dabur Overseas Limited Dabur Oncology plc. Puran Associates Private Limited
Name :	Mr. Naresh Chandra
Designation :	Director
Name :	Mr. Kranti Sinha
Designation :	Director
Name :	Mr. S. Doreswamy
Designation :	Nominee Director – IDBI
Name :	Mr. Achintya Karati
Designation :	Nominee Director – ICICI
Name :	Mr. B. K. Chaturvedi
Designation :	Executive Director
Age:	53 years
Qualification:	B.E. (Mech.), MBA
Experience:	30 years
Date of Joining:	18.07.2000
Previous Employment:	Eicher Limited - Managing Director (7 years)
Name :	Mr. S. C. Jain
Designation :	Director
Name :	Mr. R. Santhanam
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. G. N. Pareek
Designation :	Company Secretary
Name :	Dr. Anand C. Burman
Designation :	Director
Name :	Mr. S. P. Singhi
Designation :	President (Administration)
Age:	62 years
Qualification:	B. Sc.
Experience:	41 years
Date of Joining:	26.03.1960

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Individuals/ Hindu Undivided Family	558642	0.35
Bodies Corporate – Foreign	46581382	28.90
Mutual Funds /UTI	3991909	2.48
Financial Institutions / Banks	413132	0.26
Insurance Companies	10622253	6.59
Foreign Institutional Investors	2295946	1.42
Bodies Corporate – Non Institutions	26421947	16.39
Individual shareholders holding nominal share capital up to Rs. 0.100 million	50057395	31.06
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	16756326	10.40
NRIs/ OCBs	3276431	2.03
Custodian of Enemy Properties	82614	0.05
Foreign Companies	16060	0.01
Non – Residents [Foreign]	97956	0.06

BUSINESS DETAILS

Line of Business :	Manufacturing of passenger cars, heavy commercial vehicles, utility vehicles, car engines, earthmoving equipments like dumpers, loaders etc., power shift transmission (power product division) and management consultancy services
Products with ITC Code :	> Motor vehicles for passengers - 870300 > Motor vehicles for transport of goods - 870410 > Self-propelled bulldozers, excavators, shovel loaders - 842900 > Automatic Power shift Transmissions and Torque Converters - 848340

GENERAL INFORMATION

Customers :

² Ashok Leyland Limited

² Bharat Earth Movers Limited

² Escorts India Limited

² Godrej & Boyce Manufacturing Company Limited

² Ovis Equipment Private Limited

² Caterpillar India Private Limited

² Larsen & Toubro Limited

² Oil & Natural Gas Corporation Limited

² Douglas Equipment's, UK

² SVE Truck, Sweden

No. of Employees :

Around 8672

Bankers :

v UCO Bank

v Bank of India

v United Bank of India

v Bank of Baroda

v State Bank of India

Facilities :

	As on 31.03.2006 [Rupees in Millions]
SECURED LOANS :
From Financial Institutions :
Rupee Term Loans	432.693
From Scheduled Banks :
Rupee Term Loans	470.900
Against hypothecation of stocks and book debts	254.241
Deferred Payment Credits	2.399
Interest accrued and due	0.009

Banking Relations :	Satisfactory
Auditors :	S. R. Batliboi & Company Chartered Accountants
Associates :	Hindustan Powerplus Limited (Joint Venture)
Subsidiaries :	² Hindustan Motor Finance Corporation Limited ² Hindustan Motor Export Limited ² Hindustan Motors Limited, USA
Memberships :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
165000000	Ordinary shares	Rs. 10/-	Rs. 1650.000 millions
5500000	Unclassified shares	Rs. 100/-	Rs. 550.000 millions
	Total		Rs. 2200.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
161589297	Ordinary shares	Rs. 10/-	Rs. 1615.893 millions

Subscribed & Paid-up Capital

No. of Shares	Type	Value	Amount
161171993	Ordinary shares	Rs. 10	Rs. 1611.720 millions
Add :	Forfeited shares		Rs. 0.848 million
	Total		Rs. 1612.568 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006 [9 Months]	30.06.2005 [15 Months]	31.03.2004 [12 Months]
SHAREHOLDERS FUNDS
1] Share Capital		1612.568	1612.568	1612.568
2] Reserves & Surplus		164.391	176.480	176.772
3] (Accumulated Losses)		[864.563]	[438.852]	(1050.838)
NETWORTH		912.396	1350.196	738.502
LOAN FUNDS
1] Secured Loans		1160.242	972.853	3099.402
2] Unsecured Loans		449.810	688.934	634.628
TOTAL BORROWING		1610.052	1661.787	3734.030
TOTAL		2522.448	3011.983	4472.532
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1992.479	2046.592	3188.222
Capital work-in-progress		3.290	3.217	2.807
INVESTMENT		702.487	705.652	14.961
DEFERREX TAX ASSETS		0.000	0.000	412.889
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	858.678	795.191	1583.428
	Sundry Debtors	513.264	426.046	978.386
	Cash & Bank Balances	88.736	572.269	156.748
	Other Current Assets	57.398	62.809	60.045
	Loans & Advances	449.731	501.496	481.235
Total Current Assets		1967.807	2357.811	3259.842
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2093.646	2112.898	2349.339
	Provisions	73.410	62.048	99.531
Total Current Liabilities		2167.056	2174.946	2448.870
Net Current Assets		[199.249]	182.865	810.972
MISCELLANEOUS EXPENSES		23.441	73.657	42.681
TOTAL		2522.448	3011.983	4472.532

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006 [9 Months]	30.06.2005 [15 Months]	31.03.2004 [12 Months]
Sales Turnover [including other income]	4410.013	12551.417	7390.325
Profit/(Loss) Before Tax	[370.429]	1028.740	999.102
Provision for Taxation	66.484	416.754	189.631
Profit/(Loss) After Tax	[436.913]	611.986	809.471
Export Value	11.292	135.077	99.360
Import Value	720.960	1153.924	866.443
Total Expenditure	4511.998	10528.749	8389.427

SUMMARISED RESULTS

PARTICULARS	30.06.2006 [1^st Qtr.]	30.09.2006 [2^nd Qtr]
Sales Turnover	1414.700	1624.600
Other Income	19.500	103.200
Total Income	1434.200	1727.800
Total Expenditure	1549.600	1686.100
Operating Profit	[115.400]	41.700
Interest	30.200	35.500
Gross Profit	[145.600]	06.200
Depreciation	58.500	58.700
Tax	1.300	01.300
Reported PAT	[205.400]	[53.800]

Notes

200606 Quarter 1

EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter 06 Complaints Received during the quarter 67 Complaints disposed off during the quarter 65 Complaints unresolved at the end of the quarter 08 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on July 28, 2006. 2. The figures for the corresponding periods in the previous year being inclusive of Power Unit Plant and Power Products Division, which had been sold to AVTEC Limited last year on June 28, 2005, are not comparable with the current period's figures. 3. As in the past, the company has not provided against certain doubtful debts, claims and advances, as it is hopeful of recovering these amounts. The above matter was referred to by the auditors in their report for the period ended March 31, 2006. 4. Prior period figures have been re-grouped / rearranged, wherever necessary.

200609 Quarter 2

Expenditure Includes (Increase)/Decrease in stock in Trade Rs 66.60 million Consumption of Raw Material Rs 1207.60 million Staff Cost Rs 173.20 million Other expenditure Rs 238.60 million Tax Indicates Provision for Wealth Tax Rs 0.10 million Fringe Benefit Tax Rs 1.30 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter 08 Complaints Received during the quarter 43 Complaints disposed off during the quarter 46 Complaints unresolved at the end of the quarter 05 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on October 26, 2006. 2. The cumulative figures for the current financial period being for six months ended September 30, 2006, are not comparable with the figures for the corresponding period in the previous year as the same are for three months ended September 30, 2005. 3. As in the past, the Company has not provided against certain doubtful debts, claims and advances, as it is hopeful of recovering these amounts. The above matter was referred to by the auditors in their report for the period ended March 31, 2006. 4. Other income includes Rs 99.40 million as profit from sale of immovable property at Chennai. 5. The Government of West Bengal has accepted the Company's application and granted permission for alternate use of 314 acres of land vide it's Order dated September 13, 2006. 6. Prior period figures have been re-grouped / rearranged, wherever necessary.

KEY RATIOS

PARTICULARS	31.03.2006 [9 Months]	30.06.2005 [15 Months]	31.03.2004 [12 Months]
Debt Equity Ratio	1.64	2.96	3.73
Long Term Debt Equity Ratio	1.34	2.27	2.74
Current Ratio	0.88	1.03	1.12
TURNOVER RATIOS
Fixed Assets	1.60	1.81	1.17
Inventory	8.92	9.10	4.62
Debtors	15.70	15.40	7.61
Interest Cover Ratio	[4.16]	[0.35]	[0.81]
Operation Profit Margin (%)	[3.40]	2.54	[0.40]
Profit Before Interest and Tax Margin (%)	[6.65]	[1.23]	[5.20]
Cash Profit Margin (%)	[5.95]	[1.05]	[4.63]
Adjusted Net Profit Margin (%)	[9.21]	[4.83]	[9.42]
Return On Capital Employed [%]	0.00	[3.54]	0.00
Return On Net Worth [%]	0.00	[46.14]	0.00

STOCK PRICES

Face Value	Rs. 10/- each
High	Rs. 40.70/-
Low	Rs. 38.70/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 11^th February 1942 at Kolkata in West Bengal having Company Registration Number 18967.

The company is the flagship company of the C. K. Birla group of companies. The company became the first manufacturer of cars in India when it set up its plant at Port Okha in Gujarat. In 1948, it shifted its activities in Uttarpara near Kolkata and set up facilities to manufacture cars and trucks. A division at Indore manufactures fuel-efficient engines and transmissions for cars in collaboration with Isuzu Motors, Japan. It diversified its activities over the years by undertaking the manufacture of heavy engineering equipments at Uttarpara, and setting up plant at Triuvallur, to manufacture earth moving equipments and a plant at Hosur for heavy duty automatic transmissions for earth moving equipments. For the products at Triuvallur, it has a technical collaboration with Caterpillar, U.S.A. The collaborators for the Hosur plant are General Motors, U.S.A. and Twin Disc, U.S.A. The divisions at Triuvallur, Indore and Hosur have been accredited with the ISO 9001 certification.

The company has introduced a diesel version of the Contessa car with diesel power train manufactured at the company's Pithamur plant, with technology from Isuzu Motors, Japan. It has launched Opel Astra, which is manufactured at Halol, Gujarat, in collaboration with Adam Opel, Germany (a subsidiary of General Motors, U.S.A.).

The Lancer car manufactured in collaboration with Mitsubishi Motors, Japan at its Tiruvallur plant has been rated as “the best quality car” and no. 1 in sales satisfaction survey conducted by JD Power Asia. The company sells about 100 cars a month in Chennai and 145 in Tamilnadu.

The company has undertaken a Rs. 750.0 millions modernisation drive for its oldest brand, Ambassador, in order to launch a modern improved vision of the car while retaining its core design. The company is targeting sales over 1500 compressed natural gas (CNG) version of the Ambassador in Mumbai. It introduced the upgrade version of Ambassador, popularly known as 'Classic 1500 Diesel' in the year 1999-2000. It is planning for aggressive marketing of CNG Ambassadors, particularly in the taxi segment.

The company has marketing and servicing arrangement with Mitsubishi for the SUV Pajero. The company is the sole selling agent for Pajero CBUs and the arrangement covers marketing and servicing. The company is talking to Mitsubishi about assembling the Pajero at its Chennai plant in low volume manner.

It unveiled the CNG version of its Rural Transport Vehicle (RTV). The vehicle made in alliance with Australia based OKA Motor Company will be sold in both the passenger and 1.5 tonne cargo version. It expects to sell about 100 RTVs every month in fiscal 2001 and 2500 units in 2001-02.

The company entered into an agreement with Ford India Limited in 2001-02 for supply of engines and transmissions for its Pithampur Factory. The supply commenced from September, 2002. The licensing agreement with Mitsubishi Motor Corporation Limited was concluded for the introduction of Premium Uitility Vehicle Pajero and sales of the car was started in September, 2002.

The company’s range of automobile products include the Ambassador and Contessa cars (both petrol and diesel versions), Trekker (an utility vehicle), Bedford trucks (exported as CKDs to Bangladesh) and Mitsubishi Lancer model of cars in the mid-size segment.

Subject has a small presence in the multi utility vehicle and the heavy commercial vehicle segments.

In the passenger car segment, the company has the well-known "Ambassador" and "Contessa" models.

The Company is also started " Remote Services Division" at Chennai as a Software Technology Park. 

Currently the Company is having three subsidiaries i.e Hindustam Motor Finance Corporation Limited, HM Export Limited and Hindustan Motors Limited, U.S.A. 

The company has decided to hive off the component Business of the company into its subsidiary AVTEC Limited and also decided to invite Actis Capital LLP through its investment vehicle Actis Powertrain Investments Limited to acquire 30% stake in the new company. As part of the terms and conditions, the Promoter Group of the company has agreed to acquire 21% stake in AVTEC at the same valuation as Actis. The company would ultimately own 49% of AVTEC. With this transaction, AVTEC would be India's largest independent engines and transmission manufacturer, supplying critical auto components to global OEMs including GM, Ford, Caterpillar and for Mitshubishi cars in India.

Review of operations: 

Sale of automobiles during the nine-month period under report, consisting of Ambassador, Lancer and utility vehicles, was at 11856 numbers compared to 18869 numbers during the previous financial year of fifteen months period. In January 2006, the company introduced a new model of premium car, manufactured under license from Mitsubishi Motors, Japan and branded as 'Lancer Cedia'. This product has been well received in the market. The Ambassador car caters to niche segments of the market and the demand for this car was steady during the period under report. A new variant of the utility vehicle RTV was launched with value engineered design and revised emission norm requirements. 

Consequent upon input cost increases and the competitive pressure on selling prices of vehicles, the margins in the automobile business remained under pressure. The Company could minimize the pressure on margins by way of cost reduction and value engineering measures. 

As part of strategic initiatives and in view of the expected growth rate in the auto component business at the rate of 15-20% per annum, the company's unit at Uttarpara focused on supply of components from Forge Shop, Foundry and Press Shop to other manufacturers. Initiatives taken in the year under report have resulted in an increase in auto components business and it is expected that the Company will be able to achieve further higher volumes in component business in the years to come. 

The Company's Remote Services Division, engaged in providing engineering services is focusing on serving clients in automobile/engineering sectors and is confident of stepping up the sales revenue in the medium term. 

Outlook for next year: 

The recent launch of 'Lancer Cedia' should enable the Company to achieve higher sales volume of vehicles in the next year. The Company is also in discussions with Mitsubishi Motors for introduction of new models of sports utility vehicles in the current year. The Uttarpara unit expects steady sales of vehicles and a substantial growth in the component business. The Company has introduced a new variant of RTV with Diesel option. With this, RTV is now available both in CNG and Diesel variants. With these initiatives, the Company expects the results for the next financial year to be substantially better. 

Financial Performance: 

The results for the current financial year consisting of nine months are not comparable with those of the previous financial year, which consisted of fifteen months. Moreover, the results for the previous financial year included the operating performance of two of the business units namely PUP and PPD, which were sold in June 2005. 

Total turnover of the Company during the nine-month period was Rs. 5530 millions. This indicates a growth of 10% compared to previous financial period, on an annualized basis in respect of automobile business and after excluding the turnover of the business units which were sold. The operating loss before interest and depreciation during the nine-month period was Rs. 120 millions. 

The Company has repaid loans to the extent of Rs. 1925 millions in June 2005, out of the cash flow received from the sale of business units and sales of shares in AVTEC Limited. This has reduced the interest burden substantially and the same has come down to Rs. 88 millions for the nine-month period in the current financial year compared to Rs. 483.400 millions during the previous financial year. 

The Company is predominantly in automobile and auto component business. The segment-wise results are indicated in the notes schedule to the accounts. 

Awards and Recognition

The company's Power Unit plant at pithampur near Indore has received QS 9000 certification during the year under report. The Lancer Car Plant too has received ISO 14001 certification in December 2002. The Lancer car topped the sales satisfaction index and also the customer satisfaction index for mid-size premium cars for the year 2002, according to the survey by JD Power, Asia Pacific

The company has technical collaboration with following companies:

v Caterpillar Inc., USA

v Fermec Manufacturing Limited, UK

v Barber Coleman, USA

v General Motors Corporation, USA

v Mitsubishi Motors Corporation, Japan

v Oka Motors Company, Australia

The company is in trade terms with:

² Anu Auto Industries Private Limited

² Arvind Engineering Works Limited

² Atop Products Private Limited

² Baldeodass Gajanand Auto Spares Private Limited

² Dynamic Industries Limited

² Kejriwal Alloys & Metals Private Limited

² Macurex Sensors Private Limited

² Mantri Brothers Private Limited

² Ratan Plastics Private Limited

² Sawalka Kel Private Limited

² Vinman Engineering Private Limited

² 21 ST Century Autolocks Private Limited

² Airtech Private Limited

² Amrita Engineering & Trading Company

² Anupam Industries

² Associates Manufacturers (I)

² Auto Upholstery

² Baldeodas Gajanand Auto Spares

² Benara Udyog Private Limited

² Bengal Engineering Works

² Bharat Exports Limited

² Esko Die Casting Private Limited

² Eureka Rubber Industries

² Everhappy Plastics

² Farnco Spring Company

² Grey Engineering works

² Hind Casting and Engineering Works

² Hindustan Manufacturers

² Hi-Tech Metal Formin

² Imperial Auto Industries

² Indoman Engineering Works

² J. P. Agarwalla and Sons

² Kejriwal House and Metals Private Limited

² Lal Plastic Products

² Mahanagar Engineering Private Limited

² Malay Engineering

² Mohan Industries

² Multilink

² Narmada Enterprises

² National Cork Sheet Company

The company has been accredited with ISO 9001 and ISO 9002 Certifications.

The company's fixed assets of important value include freehold land, leasehold land, buildings, machinery & equipments, railway siding, furniture & fittings and vehicles.

As per Web Details

Hindustan Motors Limited - Flagship Company of C.K. Birla Group

Hindustan Motors Limited (HML), India's pioneering automobile manufacturing company and Flagship Company of the C.K. Birla Group was established just before Indian independence, in 1942 by Mr. B.M. Birla of the industrious Birla family. Commencing operations  in a small assembly plant in Port Okha near Gujarat, the manufacturing facilities later moved to Uttarpara, West Bengal in 1948, where it began the production of - the Ambassador.

Hindustan Motors Limited over the years has equipped itself with state-of-the-art facilities for the production of passenger cars, trucks and multi utility vehicles. 

Besides passenger cars (Ambassador, Grand, and Avigo), Multi Utility Vehicles (Trekker, Porter, and Pushpak) and the RTV, Hindustan Motors also manufactures passenger cars in the mid size premium segment (Mitsubishi Lancer, Lancer Select, and Lancer Cedia) and has brought in Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market in collaboration with Mitsubishi Motors, Japan. 

Contributing significantly to the Indian Automotive industry for over five decades, Hindustan Motors Limited's manufacturing facilities are situated in the states of  Madhya Pradesh, Tamilnadu and West Bengal. Hindustan Motors Limited functions with a commitment to core values such as quality, safety, and environmental care, combined with customer-oriented total solutions. 

The Plants

Tiruvallur (Chennai)

Exclusive state-of-the art plant dedicated to the manufacture of Mitsubishi Lancer cars in technical collaboration with Mitsubishi Motors, Japan. 

Uttarpara (Kolkata)

The Automobile division at Uttarpara, West Bengal near Kolkata, is engaged in the manufacture of Passenger Cars- Ambassadors, Contessa and Multi Utility Vehicles -Trekker, Porter and Pushpak.

Pithampur (Indore)

The Pithampur plant houses the Road Trusted Vehicle division, manufacturing the "RTV" brand of multi utility vehicles, in technical collaboration with OKA Motor Company, Australia.

H M EXPORTS

Hindustan Motors Limited (HML), India's premier automobile company making strident contributions to Indian economy is the manufacturer of Ambassador- the first Indian car.  HML also produces a range of other vehicles including Passenger cars, RTV, Multi Utility Vehicles (MUV), the versatile Bedford trucks. Hindustan Motors Exports is a wholly owned subsidiary of HML.  All products manufactured at HML are exported through the division. 

NEWS ROOM

Hindustan Motors offers ‘Customer Care Initiative’ in flood-hit Gujarat - October 4, 2006

Ahmedabad, Wednesday, October 4, 2006: Hindustan Motors recently launched ‘Customer Care Initiative’ for its customers in flood-hit Gujarat. The company is offering its services to help customers emerge from the terrible experience of floods.

The persistent rains in Gujarat caused a flood like situation in various cities of the state with several cars being seriously impacted from being partially or completely submerged in the rains. Surat and Ahmedabad were the worst hit with severe infrastructure breakdown. About 60 Lancers have been affected in the floods. The company has stepped forward with the initiative to help car owners recover from their dampened sentiments due to this unforeseen calamity. 

Hindustan Motors in partnership with its dealers, Auto Nova in Ahmedabad and Jaideep Motors in Surat has offered assistance to its customers by renedering special attention to the affected vehicles and providing original spare parts. Complete check up of these cars is also being carried out in order to map all possible disorders.

Commenting on the initiative, Managing Director of Hindustan Motors, Mr. Ravi Santhanam said, “Hindustan Motors has always been on the forefront of providing quality services to its customers. They shall provide technical and infrastructural support to their customers in order to bring back the vehicles to complete working order”.

Hindustan Motors Limited was established in 1942 and is a part of the G.P. C. K. Birla group of companies. Its registered office is in Kolkata, with the car manufacturing plant being at Chennai. Mr. C. K. Birla is the Chairman of Hindustan Motors. Lancer, Cedia and Pajero are the other models that are rolled out of the plant in Chennai.

Hindustan Motors keen to Expand & Diversify at Uttarpara Plant - August 25, 06

Hindustan Motors keen to Expand & Diversify at Uttarpara Plant - To emerge as a Vibrant Manufacturing Enterprise

To develop World Class Automotive Casting, Forging & Stamping Units at it’s Uttarpara Plant Kolkata, Friday, August 25, 2006: HM has developed a comprehensive “Revival & Renewal Proposal” that would bring its Automotive Industrial Complex at Uttarpara back to profitability and financial health. The proposal envisages the following:

Diversifying & Expanding into the Auto Component Sector by developing a modern & large sized Automotive Forgings & Automotive Castings & Automotive Stampings business by cost effectively leveraging existing facilities and infrastructure.

Sustaining the existing vehicle business by expanding range and upgrading technology. 

Transformation of work practices in line with best in class in the auto industry – to achieve competitiveness in Quality Cost & Delivery. 

McKinsey & Co. and other reputed consultants have forecast auto component exports from India to grow manifold from current levels of $ 1.5 Billion; Uttarpara is well placed to ride this growth wave. The company has piloted this approach over the past few months and response from OEMs, both in India and Europe has been heartening.

HM’s Uttarpara (UTP) facility was established in 1948 and developed as a fully integrated automotive industrial complex and township. For many decades this plant has been a significant contributor to the State of West Bengal by bringing in technology and capital, generating direct and indirect employment and contributing through direct and indirect Taxes. Post liberalization and opening up of the economy, this unit handicapped by legacy costs and systems, experienced a whole new set of challenges and sustained financial stress. Given this backdrop, to fund the expansion and diversification program, HM had applied to the State Government, seeking permission for alternate use of 314 acres. 

It has been reported that West Bengal Govt. through a communiqué to a syndicated news agency, has indicated that the above application is being approved, under the West Bengal Industrial Renewal Scheme 2001 and as per West Bengal Land Reforms Act 1955. The company is awaiting formal communication.

The company’s application envisages development of 314 acres of land, over a 4-5 year period, into a World Class Integrated IT & ITES Township and Auto Ancillary Park. IT, ITES and Auto Ancillary are three of the fastest growing sectors and such a development will also maximize socio-economic benefits to Uttarpara and the neighbouring belts.

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 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.44.24
UK Pound	1	Rs.86.95
Euro	1	Rs.57.33

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		35

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	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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