MIRA INFORM REPORT

Report Date :

25.01.2007

IDENTIFICATION DETAILS

Name :	TATA INDUSTRIES LIMITED
Registered Office :	Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	07.04.1945
Com. Reg. No.:	11-4403
CIN No.: [Company Identification No.]	U44003MH1945PLC004403
TAN No.: [Tax Deduction & Collection Account No.]	MUMT08994G
PAN No.: [Permanent Account No.]	AAACT4058L
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of Financing and Leasing activities.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD36500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an investment company of Tata Group. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22867101/22049131/22021464 / 56658282
Fax No.:	91-22-22047996 / 56657974
E-Mail :	sharajadhyaksha@tata.com, nrsrinivasan@tata.com
Website :	http://www.tata.com

DIRECTORS

Name :	Mr. Ratan Naval Tata
Designation :	Chaiman
Address :	Bakhtavar, Flat No. 202A, Lower Colaba Road, Colaba, Mumbai 400005, Maharashtra, India
Date of Birth/Age :	28.12.1937
Date of Appointment :	06.09.1981
Name :	Mr. Farrokh Kaikushru Kavarana
Designation :	Director
Address :	CCI Chambers, Flat No.9, Dinshaw Vaccha Road, Mumbai 400020, Maharashtra, India
Date of Birth/Age :	17.03.1944
Date of Appointment :	01.04.1975
Name :	Mr. Noshir Adi Soonawala
Designation :	Director
Address :	29, Hampton Court, Opposite Colaba Post Office, Colaba, Mumbai 400005, Maharashtra, India
Date of Birth/Age :	27.06.1935
Date of Appointment :	25.06.1980
Name :	Mr. Syamal Gupta
Designation :	Director
Address :	19, Common Wealth, Madame Cama Road, Nariman Point, Mumbai 400020, Maharashtra, India
Date of Birth/Age :	15.04.1934
Date of Appointment :	01.01.1983
Name :	Mr. Simone Naval Tata
Designation :	Director
Address :	302, Bakhtavar, Lower Colaba Road, Colaba, Mumbai 400005, Maharashtra, India
Date of Birth/Age :	03.03.1930
Date of Appointment :	11.05.1989
Name :	Mr. Jamshed Jiji Irani
Designation :	Director
Address :	221, A Wing NCPA Apartments, Nariman Point, Mumbai 400021, Maharashtra, India
Date of Birth/Age :	02.06.1936
Date of Appointment :	20.12.1994
Name :	Mr. Rayaroth Kuttambally Krishnakumar
Designation :	Director
Address :	Apsara, NCPA Complex, Flat 213, B Block, Nariman Point, Mumbai 400021, Maharashtra, India
Date of Birth/Age :	18.07.1938
Date of Appointment :	03.04.1998
Name :	Mr. Ishaat Rayasat Hussain
Designation :	Director
Address :	Flat No.222, NCPA Resindential Tial Apartments, Sir Dorabji Tata Road, Nariman Point, Mumbai 400021, Maharashtra, India
Date of Birth/Age :	02.09.1947
Date of Appointment :	03.04.1998
Name :	Mr. Sowmyan Ramakrishnan
Designation :	Director
Address :	D-9, Income Tax Oficer’s Colony, Peddar Road, Mumbai 400036, Maharashtra, India
Date of Birth/Age :	19.02.1949
Date of Appointment :	06.10.1998
Name :	Mr. Richard Alan Rosling
Designation :	Director
Address :	9, Hill Park, A G Bell Marg, Malabar Hill, Mumbai 400006, Maharashtra, India
Date of Birth/Age :	16.08.1962
Date of Appointment :	09.11.1998
Name :	Mr. Ramadorai Subramanian
Designation :	Director
Address :	104, Sagar Darshan, 8, Worli Sea Face, Mumbai 400025, Maharashtra
Date of Birth/Age :	06.10.1944
Date of Appointment :	03/07/2000
Name :	Mohamed Asad Pathan
Designation :	Director
Address :	23 A, Prithviraj Road, New Delhi 110011, New Delhi
Date of Birth/Age :	09.03.1942
Date of Appointment :	23.12.2002
Name:	Dr. F. A. Mehta
Designation:	Director
Name:	Mr. F. K. Kavarana
Designation:	Director
Name:	Mr. J. E. Talaulicar
Designation:	Director
Name :	Mr. Nawshir Mirza
Designation :	Director
Address :	6A, Somerset Place, Bhaulabhai Desai Road, 61-D, Mumbai 400026, Maharashtra, India
Date of Birth/Age :	04.04.1950
Date of Appointment :	10.10.2003
Name :	Mr. Balasubramanian Natesan Muthuraman
Designation :	Director
Address :	7 C Road, Northeren Town, Jamshedpur – 831001, Jharkhand, India
Date of Birth/Age :	26.09.1944
Date of Appointment :	10.05.2005
Name :	Mr. Prasad Raghava Menon
Designation :	Director
Address :	Lovedale, 50-F, Peddar Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	23.01.1946
Date of Appointment :	10.05.2005
Name :	Mr. Kishor Anant Chaukar
Designation :	Director
Address :	214, NCPA Apartments, Dorabji Tata Road, Nariman Point, Mumbai 400021, Maharashtra, India
Date of Birth/Age :	01.08.1947
Date of Appointment :	15.10.1998
Name:	Mr. Sujit Gupta
Designation:	Director
Name:	Mr. X. S. Desai
Designation:	Director

KEY EXECUTIVES

Name :

Mr. Shailash Harishchandra Rajadhyaksha

Designation :

Secretary

Address :

Hill View Raghavji Road, Gowalia Tank, Mumbai 400036, Maharashtra, India

Date of Birth/Age :

04.11.1951

Date of Appointment :

01.03.1996

Name :

Mr. Nurani Ramachandran Srinivasan

Designation :

Secretary

Address :

D-73, Symphony , Powai, Chandivali Farm Road, Andheri (East), Mumbai 400072, Maharashtra, India

Date of Birth/Age :

01.07.1968

Date of Appointment :

23.04.2004

Name :

Mr. Raghavan Ramachandra Shastri

Designation :

Secretary

Address :

Flat No A61/62, Meherzin, 109-A, Wodehouse Road, Colaba, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

26.09.1952

Date of Appointment :

01.01.2007

Directorship in other Companies:

CIN of Company	U67120MH1992PLC066160
Name of Company	Panatone Finest Limited
Designation	Director
CIN of Company	U74140MH1988PTC049927
Name of Company	Aida Marketing Services Private Limited
Designation	Director
CIN of Company	U51900MH1988PTC049926
Name of Company	Brihat Trading Private Limited
Designation	Director
CIN of Company	U74899DL1989PTC036902
Name of Company	Chic Interiors Private Limited
Designation	Director
CIN of Company	U74300MH1988PTC049512
Name of Company	Kaygee Advertising Private Limited
Designation	Director
CIN of Company	U51900MH1988PTC049518
Name of Company	Mohar Export Services Private Limited
Designation	Director
CIN of Company	U63040MH1988PTC049514
Name of Company	Malusha Travels Private Limited
Designation	Director
CIN of Company	U72900MH2006PTC163193
Name of Company	Advanced Computing Solutions Private Limited
Designation	Director
CIN of Company	U72900MH2006PLC164730
Name of Company	Tara Systems and Technologies Limited
Designation	Director
CIN of Company	U51900MH2006PTC159776
Name of Company	Computational Research Laboratories Private Limited
Designation	Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Tata Sons Limited	21001899	28.61
Tata Iron And Steel Company Limited	5628388	7.66
Tata Motors Limited	6665780	9.08
Tata Chemicals Limited	6574202	8.95
Tata International Limited	3147951	4.28
Voltas Limited	870480	1.18
Taj Investment And Finance Company Limited	4274590	5.82
Tata Tea Limited	4346294	5.92
Tata Investment Corporation Limited	666944	0.90
Ewart Investments Limited	198629	0.27
Nelco Limited	22500	0.03
The Tata Power Company Limited	3551903	4.83
Aftaab Investment Company Limited	1000543	1.36
JSH (Mauritius) Limited	13890669	18.92
Kalimati Investment Company Limited	383609	0.52
Sheba Properties Limited	870217	1.18
Samrat Holdings Limited	300000	0.40
Total	73394598	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Financing and Leasing activities.

GENERAL INFORMATION

No. of Employees :	100
Bankers :	Ø Bank of Baroda Ø Canara Bank Ø State of Mysore
Facilities :	--

Banking Relations :	Good
Auditors :	A.F. Ferguson And Company Chartered Accountants Maker Chamber ‘E’, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Subsidiaries :	Ø Tata Advanced Materials Limited, CIN of the company : U02420KA1889PLC013224 Ø Tata Televentures (Holdings) Limited Ø Drive India.Com Limited  Ø Apex Investments (Mauritius) Holding Private Limited Ø Tata Interactive Systems AG – Switzerland Ø Tata Interactive Systems AG – Germany
Associates:	Ø Automotive Stampings and Assemblies Limited Ø Concorde Motors Limited Ø Drive India.com Limited Ø Tata Finance Limited Ø Tata Autocomp Systems Limited Ø Tata Johnson Controls Limited Ø Itel Industries Limited Ø Tata Internet Services Limited Ø Tata TD Waterhouse Securities Limited Ø Oriental Floratech Limited Ø Oriental Seritech Limited Ø Aviation Software Development Consultancy India Limited Ø Tata Teleservices Limited Ø JSH (Mauritius) Limited
Joint Venture:	Ø Tata Honeywell Limited Ø Information Technology Park Limited Ø Idea Cellular Limited
Promoter:	Tata Sons Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7,50,00,000	Equity Shares	Rs. 100/- Each	Rs. 7500.000 millions
50,00,000	Redeemable Preference Shares	Rs. 100/- Each	Rs. 500.000 millions
	Total		Rs 8000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
73394598	Equity Shares	Rs. 100/- Each	Rs 7339.460 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		7339.460	7339.460	6945.336
2] Share Capital Suspense		0.000	0.000	394.124
3] Reserves & Surplus		1808.462	1246.575	655.549
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9147.922	8586.035	7995.009
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		13251.747	10131.018	10627.957
TOTAL BORROWING		13251.747	10131.018	10627.957
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		22399.669	18717.053	18622.966
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		231.374	241.867	178.143
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		21385.430	17810.396	17278.252
DEFERREX TAX ASSETS		0.000	0.000	0.000
Work done not billed				--
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	--
	Sundry Debtors	179.749	78.559	--
	Cash & Bank Balances	23.577	22.051	--
	Other Current Assets	172.832	431.320	480.052
	Loans & Advances	700.016	537.814	1096.497
Total Current Assets		1076.174	1069.744	1576.549
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	254.347	377.510	313.652
	Provisions	42.190	36.196	110.253
Total Current Liabilities		296.537	413.706	423.905
Net Current Assets		779.637	656.038	1152.644
MISCELLANEOUS EXPENSES		3.228	8.752	13.927
TOTAL		22399.699	18717.053	18622.966

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004
Sales Turnover [including other income]	1591.157
Profit/(Loss) Before Tax	102.232
Provision for Taxation	28.000
Profit/(Loss) After Tax	74.232
Expenditure
Salaries & Wages	351.802
Interest	752.081
Depreciation	34.931
Rent & Royalty	--
Selling & Administrative Expenses	--
Other Expenses	122.324
Establishment Expenses	227.787

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	NA	NA	4.67
Net Profit Margin (PBT/Sales)	NA	NA	6.43
Return on Total Assets (PBT/Total Assets}	NA	NA	0.54
Return on Investment (ROI) (PBT/Networth)	NA	NA	0.01
Debt Equity Ratio (Total Liability/Networth)	1.48	1.22	2.38
Current Ratio (Current Asset/Current Liability)	3.62	2.58	3.72

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

The company’s fixed assets of important value includes ownership flats, motor vehicles, furniture, fixtures and equipments, Computer Software

The company’s generic names of principal products/services includes :-

· Investment Holding

· Consultancy Services

· Web-based Training & Vertical Portals

The Scheme of Amalgamation (Scheme) of Tata Televentures (Holdings) limited (TTVHL), a subsidiary of the company in which the company holds over 87% of the paid up equity capital, with Tata Industries Limited (TIL) has been approved by the Mumbai and Delhi High Courts. In terms of the Scheme, the company would be allotting the shares in the ratio of 100 ordinary shares of the company of Rs. 100 Each for every 1634 equity shares of Rs. 10 Each of TTVHL. With this, the company Paid up Capital would further stand increased to Rs.7339.400 millions.

During the year, the company sold its entire holding in Automotive Stampings And Assemblies Limited (formerly JBM Tools Limited) and Tata Internet Services Limited to Tata Autocomp Systems Limited (TACO) and Tata Teleservices Limited (TTSL) respectively. The company also sold 50 % of its stake in Driveindia.com Limited to Cameo Investment and Finance Limited, a subsidiary of Tata International Limited.

In April 2004, the group agreed to sell its entire holding (25.10%) in Tata Telecom Limited (TTL) to the foreign collaborator, Avaya Inc. at Rs. 220 per share. An open offer for acquiring a minimum of 20% of TTL’s issued capital is being made by Avaya at the same price, in accordance with the SEBI takeover Guidelines. The transaction is likely to be consummated by August 2004 and will result in a profit of Rs. 207.000 millions and a cash inflow of Rs. 298.700 millions to the company during 2004-2005.

Website details are attached herewith

Leadership with trust

The Tata Group is one of India's oldest, largest and most respected business conglomerates. The Group's businesses are spread over seven business sectors. It comprises 91 companies and operates in six continents. It employs some 220,000 people and collectively has a shareholder base of over two million.

Quality shining

The Tata Group, through its many companies, offers a cornucopia of high-quality products and services in a variety of industries. This section enables visitors to get a brief description of these products and services and the Tata company they come from. It is bifurcated into products and services for homes and individuals, and for industries and companies

Press releases, media reports, Group highlights and events

This subsection provides links to all the news releases issued by the Tata Group and its companies to media organisations; reports about the Group and its companies that have appeared in print and web publications; and a listing of events relating to the Group and its companies.

For industries and companies

Tata companies offer an abundance of products and services for industry and companies in India and a host of other countries around the world. These products and services have been arranged in alphabetical order here, with links leading to specific pages that highlight individual products and services.

For homes and individuals

Tata companies offer a wide variety of outstanding products and services that enhance and enrich the lives and homes of consumers in India and a host of other countries around the world. These products and services have been arranged in alphabetical order here, with links leading to specific pages that highlight individual products and services

Principles first

An implicit sense of ethical business conduct has been the cornerstone of the Tata way in the corporate governance sphere. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations supplement the traditional values on which the Tata Group has been shaped.

Features

This subsection brings together commissioned articles about the Tata Group and its companies and interviews with Tata chief executive officers and managers (inclusive of archived material). It also showcases speeches made by senior Tata executives in various fora.

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	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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