MIRA INFORM REPORT

Report Date :

15.11.2007

IDENTIFICATION DETAILS

Name :	J K TYRE AND INDUSTRIES LIMITED
Registered Office :	7, Council House Street, Kolkata - 700 001, West Bengal
Country :	India
Financials (as on) :	30.09.2006
Date of Incorporation :	01.01.1951
Com. Reg. No.:	21-19430
CIN No.: [Company Identification No.]	L67120WB1951PLC019430
TAN No.: [Tax Deduction & Collection Account No.]	JDHJ01475F / CALJ01643F
PAN No.: [Permanent Account No.]	AAACJ6716P
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of Automotive Tyres, Tubes and Flaps, Pharmaceuticals and Cane Sugar.

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 23668800
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. General financial position is satisfactory. 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.

LOCATIONS

Registered Office :	7, Council House Street, Kolkata - 700 001, West Bengal, India
Tel. No.:	91-33-22484198 / 22486181
Fax No.:	91-33-22481641
E-Mail :	info@jktyre.com pkrustagi@jkmail.com
Website :	http://www.jktyre.com
Administrative Office :	3, Bahadurshah Zafar Marg, New Delhi- 110 002, India
Plants Locations :	v J K Tyre, Kankroll, Rajasthan, India v Banmore, Madhya Pradesh, India v Mysore Plant I, Karnataka Mysore Plant II, Karnataka, India v J. K. Sugar, Meerganj, Uttar Pradesh, India
Branch :	3/Fl, Gulab Bhavan, 3 Bahadur Shah Jafar Marg, New Delhi – 110 002, India

DIRECTORS

Name :	Mr. Raghupati Singhania
Designation :	Vice Chairman and Managing Director
Name :	Mr. Vikrampati Singhania
Designation :	Deputy Managing Director
Name :	Mr. Bharat Hari Singhania
Designation :	Managing Director
Name :	Swaroop Chand Sethi
Designation :	Whole Time Director
Name :	Mr. Arvind Narottam Lalbhai
Designation :	Director
Age:	83 Years
Qualification :	B. Sc.
Date of Joining :	07/04/1975
Other Directorships :	v The Arvind Mills Limited- Chairman and Managing Director v SRF Limited v Atul Limited v Birla VXL Limited v Tata Chemicals Limited v Arvind Products Limited v Lokprakashan Limited v Arvind Overseas (M) Limited
Name :	Mr. Arvind Singh Mewar
Designation :	Director
Age:	57 Years
Qualification :	B. A. (English Literature, Economics and Political Science), Hotel Management Course (U.K)
Date of Joining :	07/04/1975
Other Directorships :	v The Lake Palace Hotels and Motels Limited -Chairman and Managing Director v Historic Resort Hotels Limited -Chairman v Shikarbadi Hotels Limited
Name :	Mr. Bakul Jain
Designation :	Director
Name :	Mr. B. C. Bose
Designation :	Director (LIC Nominee)
Name :	Mr. I M Vittala Murthy, IAS,
Designation :	Director
Name :	Mr. Om Prakash Khaitan
Designation :	Director
Name :	Dr. Vinayshi Gautam
Designation :	Director (IDBI Nominee)
Name :	Mrs. Sobha Nambisan
Designation :	Director
Name :	Mr .Vikrampati Singhania
Designation :	Director
Name :	Mr. Govind Ballabh Pande
Designation :	Nominee (LIC)
Name :	Mr. Vinayshil Gautam
Designation :	Nominee (IDBI)

KEY EXECUTIVES

Name :	Mr. P. K. Rustagi
Designation :	Company Secretary
Name :	Mr. Hari Shankar Singhania
Designation :	Chairman
Age :	68 years
Qualification :	B.Sc., F. Inst. D. (London)
Date of Joining :	25/03/1974
Other Directorships :	J. K. Corporation Limited-Chairman and Managing Director The Central Pulp Mills Limited- Chairman Atlas Copco (India) Limited- Chairman J. K. Udaipur Udyog Limited-Chairman

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 31.03.2006

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters' Holdings
Indian Promoters	16376700	43.72
Non Promoter's Holdings
Mutual Funds and UTI	3304248	8.82
Banks, Financial Institutions and Insurance Companies	3587706	9.57
FIIs	2629787	7.02
Others
Private Corporate Bodies	3748225	10.01
Indian Public	3751796	10.02
NRIs / OCBs	4060884	10.84

BUSINESS DETAILS

Line of Business :	Manufacturing of Automotive Tyres, Tubes and Flaps, Pharmaceuticals and Cane Sugar.
Products with ITC Code :	v Tyres, Tubes & Flaps - 4011,12 & 13 v Pharmaceuticals - 3004 v Cane Sugar - 1701

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Automobile Tyres	Million Nos.	6.055	5.562
Automobile Tubes	Million Nos.	2.425	4.360
Automobile Flaps	Million Nos.	--	1.985

GENERAL INFORMATION

No. of Employees :	Around 4000
Bankers :	v Bank of India v Canara Bank v Corporation Bank v Dena Bank v Indian Bank v Punjab National Bank v State Bank of Bikaner & Jaipur, G72, Connaught Circus, New Delhi-110001, India v State Bank of India v State Bank of Mysore v Syndicate Bank v The Bank of Rajasthan Limited v The Federal Bank Limited v UCO Bank v UTI Bank v Vijaya Bank
Facilities :	--
Banking Relations :	Satisfactory
Auditors :	Lodha & Company Chartered Accountants
Memberships :	Confederation of Indian Industry
Associates :	v J K Corp Limited v J K Paper Limited v Hari Shankar Singhania Elastomer and Tyre Research Institute v J K Pharmachem Limited v Valiant Pacific LLC v J K Pharmachem Limited
Subsidiaries :	v J K Drugs & Pharmaceutical Limited v Hansdeep Investment Limited v Hidrive Finance Limited v Panchanan Investment Limited v Radial Finance Limited v Shivdham Properties Limited v J.K. International Limited, UK v J K Asia Pacific Limited, Hong Kong v J K Asia Pacific (S) Pte Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
180000000	Equity shares	Rs. 10/- each	Rs.1800.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30794510	Equity shares	Rs. 10/- each	Rs.307.945 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.09.2006	30.09.2005	30.09.2004
SHAREHOLDERS FUNDS
1] Share Capital		307.900	374.600	374.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5609.300	7451.400	8187.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5917.200	7826.000	8562.200
LOAN FUNDS
1] Secured Loans		7247.700	6712.800	6565.100
2] Unsecured Loans		2191.000	1592.200	941.600
TOTAL BORROWING		9438.700	8305.000	7506.700
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		15355.900	16131.000	16068.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12241.900	11739.800	12071.100
Capital work-in-progress		225.100	616.300	164.300
INVESTMENT		614.600	2500.400	2522.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3685.900	2440.300	1781.700
	Sundry Debtors	4778.900	4117.900	4495.200
	Cash & Bank Balances	393.200	361.100	382.300
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1441.400	1349.200	1127.700
Total Current Assets		10299.400	8268.500	7786.900
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7840.800	6864.400	6416.000
	Provisions	275.900	259.000	214.200
Total Current Liabilities		8116.700	7123.400	6630.200
Net Current Assets		2182.700	1145.100	1156.700
MISCELLANEOUS EXPENSES		91.600	129.400	154.200
TOTAL		15355.900	16131.000	16068.900

PROFIT & LOSS ACCOUNT

PARTICULARS		30.09.2006	30.09.2005	30.09.2004
Sales Turnover		29526.900	23838.200	22375.000
Other Income		205.200	193.200	276.900
Stock Adjustments		1103.300	288.600	[719.200]
Total Income		30835.400	24320.000	21932.700
Profit/(Loss) Before Tax		218.000	34.400	164.800
Provision for Taxation		47.500	[133.200]	42.900
Profit/(Loss) After Tax		170.500	167.600	121.900
Expenditures :
	Raw Material	19120.800	14248.900	11865.400
	Excise Duty	3629.200	3052.700	3176.300
	Power And Fuel	1390.000	1110.800	975.200
	Other Manufacturing Expenses	979.900	813.400	641.900
	Employee Cost	1534.300	1406.700	1365.100
	Selling And Administration Expenses	1951.400	1844.500	1803.100
	Miscellaneous Expenses	512.100	498.800	472.400
	Interest And Financial Charge	790.600	673.300	855.100
	Depreciation	709.300	636.500	613.400
Total Expenditure		30617.600	24285.600	21767.900

SUMMARISED RESULTS

Year	30.09.2007
Type	Full Year
Sales Turnover	28140.100
Other Income	105.100
Total Income	28245.200
Total Expenditure	25594.900
Operating Profit	2650.300
Interest	886.800
Gross Profit	1763.500
Depreciation	759.400
Tax	27.600
Reported PAT	665.000
Dividend (%)	0.000

KEY RATIOS

Year	30.09.2006	30.09.2005	30.09.2004
Debt-Equity Ratio	2.28	1.96	1.84
Long Term Debt-Equity Ratio	1.40	1.41	1.33
Current Ratio	0.84	0.88	0.92
TURNOVER RATIOS
Fixed Assets	1.72	1.59	1.57
Inventory	9.64	11.29	11.49
Debtors	6.64	5.54	5.19
Interest Cover Ratio	1.21	0.93	1.19
Operating Profit Margin(%)	5.63	5.31	7.30
Profit Before Interest And Tax Margin(%)	3.23	2.64	4.56
Cash Profit Margin(%)	2.81	3.04	3.29
Adjusted Net Profit Margin(%)	0.41	0.37	0.54
Return On Capital Employed(%)	7.54	5.34	8.42
Return On Net Worth(%)	3.10	2.21	2.83

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORTS:

Turnover during the year was at an all time high of Rs.29700.000 millions recording an impressive increase of 24% over that of previous year.

Operating Profit for the year at Rs.1690.000 millions increased by 29%. After providing for cost of borrowings, depreciation and taxation, Profit After Tax for the year was Rs.170.000 millions.

The Company has achieved these results despite unprecedented increase in the cost of raw materials. Company's continued emphasis on efficiency parameters, technology upgradation and cost compression has helped the Company to improve operating results. 

RESTRUCTURING: 
A Scheme of Arrangement and Demerger (Scheme) between J K Industries Limited and Netflier Technologies Limited (name since changed to Netflier Finco Limited) filed in the Hon'ble High Court at Calcutta on 19th June, 2006 was approved at the shareholders' meeting held on 7th September, 2006 under the Order of the Hon'ble High Court. The Scheme has since been sanctioned by the Hon'ble High Court at Calcutta pursuant to Sections 391 -394 of the Companies Act, 1956. The Scheme has become effective on 11th January, 2007 and is operative from 1st October, 2005. Impact of the Scheme has been incorporated in the Audited Accounts for the year under review. 

 On the Scheme becoming effective as aforesaid, the 'Demerged Undertaking' comprising of business of holding and dealing in investments and some other assets and properties of the Company and liabilities and obligations thereof stood transferred to and vested in Nefflier Finco Limited

On re-organization of the Share Capital in terms of the Scheme, for every existing 100 Equity Shares of Rs.10 each of the Company, the Shareholders were issued 75 fully paid Equity Shares of Rs.10 each of the Company and 25 fully paid Equity Shares of Rs.10 each of Netflier Finco Limited, Accordingly the paid up Equity Share Capital of the Company stood reorganized from Rs.410.600 millions to Rs, 30790.000 millions. 

On the Scheme becoming effective, Hansdeep Investment Limited, Hidrive Finance Limited, Panchanan Investment Limited and Radial Finance Limited have ceased to be the subsidiaries of the Company. 

PREFERENTIAL ISSUE: 

The Company has augmented its long term resources and its networth by issue of 3600000 Equity Shares aggregating to Rs.378.000 millions to a group Company on preferential allotment basis. 

DIVIDEND: 
The Directors are pleased to recommend an increased dividend of 25% (Rs.2.50 per Equity Share) on the Equity share Capital of Rs.307.900 millions

JK Tyre - Pioneers of: 
  Radial Technology in India: 
  * Introduced Passenger Radials in 1977 
  * Truck/Bus Radials in 1999 
  1st Indian Company to launch: 
  * Hi-Performance 'V-Rate' Directional Tyres 
  * First OE Fitment of Tubeless Radials 
  * Eco Friendly Silica Tyres 
  * Asymmetric Tyres far Entry - 'C' segment cars. Uitima Royale 

OPERATIONS: 

Production during the year at 6.785 millions tyres registered an increase of 17.5%. During the year Expansion Project enhancing capacities of Truck Radial by 50% and Passenger Radial by 30% was completed. The coming year shall have the benefit of these expanded capacity, which will further strengthen JK Tyre's leadership in the Indian Tyre Market. 

 Wide Ranging Products: 

· Highest Mileage Bias Lug Truck Tyre in India - 'JET ONE' 

·  Only company to offer strong Dual Bead 18PR Bias LCV Tyre 

· 'Ultima XPC': The ultimate power for Little Elephant - Tata Ace * Complete range of Taxi Radials: 'Rally'

for Ambassador, Omni, Indica and Indigo 

· World Class Motorsports Tyres for Racing, Rallying and Karting 

The Passenger Car industry is witnessing exciting times with surge in the demand as well as larger number of newer models being put on the roads. The global major players are setting up their facilities in India at a fast pace. The Company has partnered with Original Equipment Manufacturers (OEMs) and has kept pace by developing tyres for newer models in a short cycle time, 

The Company is seizing this opportunity and has taken on hand further expansion in Passenger Radial and LCV Bias tyre capacities to meet the growing demand of JK Tyres. 

Commercial vehicle segment is also witnessing larger growth driven by an accelerated economic activity. The development of multi-axle vehicles have generated demand for truck radial tyres, Foreseeing a demand for these tyres, the Company has enlarged its truck radial capacity at its state-of-the-art plant at Mysore. 

Off The Road (OTR) tyres capacity was also expanded, during the year. With emphasis on growth of infrastructure, the Company is planning further growth in this segment. 

GLOBAL PRESENCE: 

The Company continued to have a wider foot print on the global markets.Its exports at Rs.4350.000 millions resulted in a growth of 14% over last year. Their extensive marketing network, spread across 70 countries, in 6 continents is the strength behind the excellent growth in the global business over these years, Outsourcing of JK Tyre branded products from China for international markets is gaining momentum and will further increase in the coming years.  With a view to conserve scarce natural resources, Effluent Treatment, Waste Water Management by installing water efficient equipment wherever possible, are some of the measures taken at their Plant locations. Rajasthan being water scarce State, efficient water management and rain water harvesting have been focus areas from last many years. 

Kankroli Tyre Plant (Jaykaygram) has received 'Green Tech Environmental Award' from CII which is the testimony of Company's concern for the environment.

All their tyre plants are ISO 14001 accredited and maintain highest level of environmental and safety standards, Environmental audit by Pollution Control Board Authorities and other agencies ensure compliance of all the Environmental Protection Laws of the Land. 

RECOGNITIONS: 
Besides prestigious business awards like, Leading Tyre Exporter, Product Quality and Human Resource Excellence, Company has been recognized by Maruti Udyog Limited as leading vendor and conferred with 'Award for overall Design Excellence' and 'Overall Supplier Performance', We have also been awarded best 'Vendor Managed Inventory Award' by Eicher Motors. It is their privilege to be sole supplier to world platform model 'LOGAN' in India being launched by Renault of France in collaboration with Mahindra and Mahindra. 

Company's Kankroli Plant has been recognized with special accolades in the form of CII GBC Energy Efficient Plant award. 

 MANAGEMENT DISCUSSION AND ANALYSIS: 
OVERVIEW: 

The company has achieved an impressive growth of 24% by recording a turnover of Rs,29700.000 millions. Export grew by 14% achieving yet another high of Rs.4350.000 millions and company continues to be India's leading tyre exporter. 

Over the last few years, hardening crude oil prices and phenomenal increase in rubber prices have impacted operating margins of the tyre industry. The company continued its thrust on various cost cutting measures, product and segment mix enrichment, substitution of materials and product re-engineering to partly offset the input cost increases. Softening price of crude oil and natural rubber should improve operating margins in the current year. 

Economy has registered an impressive growth of 8.4% and India is poised to join the rank of global economic super power. Sustainable growth over 8% and projected double digit growth will fuel all round growth momentum in years to come. The automotive sector is already achieving double digit growths which in turn is propelling tyre demand. The Company has geared itself to meet this growing demand by recently completing expansion of its capacities in Passenger Radials by 30% and Truck Radials by 50%. 

 TYRE INDUSTRY SCENARIO: 

Impressive growth in all the sectors of automotive industry has given momentum to the tyre industry. Massive investment in infrastructure and road network development, completion of Golden Quadrilateral and faster actions on North-South and East-West corridor would benefit tyre industry in the times ahead. 

The Government has been entering into various FTAs and RTAs apart from talking about reduction of import tariffs per se. While these are welcome steps, what is critical, is to ensure competitiveness of the Indian Industry. The high costs on account of various indirect and local taxes and poor infrastructure is putting Indian Industry to a great disadvantage vis-a-vis its counter parts particularly from the South East Asian countries not to mention about China. It is therefore, essential that any lowering of tariffs directly or through trade agreements be done keeping these realities in mind, lest the Indian market is flooded with imports and renders Indian Industry uncompetitive. 

 JK TYRE BRAND LEADER: 

During the year, the company achieved highest ever production of 68 lac tyres against 5.8 lac tyres last year recording a growth of 17.5%. Quality of the lyres being rolled out by JK Tyre Plants, are of world class standards and have excellent acceptance in the market. 

JK Tyre commands leading position in tyre market. Company further enlarged its market share in commercial tyre and passenger car segments, Multi-dimensional marketing policies based on deep customer understanding have made this possible. 

Further expansion of the passenger radial capacities and LCV capacities shall strengthen market participation in the current year. 

 Qualitative Research and Development: 

  * Independent R and D Centre - HASETRI, one of its kind in Asia for Polymer and Elastomer Research 
  * Value Engineered Materials: High-end analytical and evaluation tools for use of alternate materials 
  * Centre of Excellence at IIT, Chennai for enhancing capability for high-end predictive technology through FEA 
  * Product Evaluation: fully equipped infrastructure including test track for evaluation of critical tyre/vehicle parameters 

 COMMERCIAL TYRE SEGMENT: 

This segment constituting Truck and LCV tyres accounts for 80% of the revenue generated by the tyre industry. The rapidly developing road infrastructure and the strict enforcement of the provisions of the Motor Vehicles Act on overloading have led to major changes in the demand pattern of truck tyres. The usage of 10 wheeler vehicles is on the increase. The production of vehicles for purposes of load carrying is growing faster as compared to passenger carriers. The company is strategically positioned to meet this change and responded suitably by offering new products like JETONE, JET PACE, JET ACE and JET POWER for different segments of use. A specialty product JET ROCK developed for the mining application was well received in the market. 

 Number of customer reach programmes and special product promotion schemes helped improve sale of Company's truck tyres. 

 New sizes, for the changing needs of LCV market, were developed which are enjoying consumer preference. LCV Bias Consumer Reach Programme 'KAUN BANEGA SADKON KA SHAHENSHAH' covering the entire country and reaching out to more than 30000 consumers has been a great success. 

TRUCK RADIAL: 

JK Tyre continues to enjoy its leadership in Industry in this growing segment of Truck Radials with a market share of around 80%. During the year, the company continued to lay focus on new Customer creation and Market expansion. The unique Fleet Management program has enabled their customers to derive value added benefits. 

 The 'JK Truck Radial Tyre Care' Centres strategically located along the national highways continue to provide 24x7 service with a major initiative being the launch of a CRM program 'RADIAL KINGS'. Training programmes for drivers, repair and retread mechanics were conducted extensively, which helped in generating enhanced awareness for Radials in the field. Visits by major fleet owners and customers to their state-of-the-art plant created better appreciation about the high quality of Truck Radials being produced by the Company, which in turn, generated into higher fitment of Truck Radials. 

 Increased radialisation will further accelerate demand of truck radial tyres in the Indian market and it will benefit the company in the current financial year. 

 CAR TYRES: 

In this important business segment the company has outperformed the industry, JK Tyre increased its market share in car radials in the replacement market during the year. 

This was made possible by adopting a multi pronged approach, An enlarged range, backed by focused efforts on retail distribution, enabled higher service levels to the customer. 

Extensive consumer connect initiatives were carried out in major cities. JK Tyre partnered Car OEMs and SIAM, in a wide range of service activities including Family Rallies. Various promotional schemes benefited their Car Tyres consumers. 

Catering to emerging business segments has always been their forte. The rapidly growing economy has led to the growth of major car fleets and a structured interactive program was undertaken to strengthen participation in this segment. 

 It is a matter of pride that the JD Power Survey recorded further improvement in the Customer Satisfaction index for the 2nd year in succession for JK Tyre,, and was ranked above the Industry Average. 

FARM TYRES: 

An innovative Rural Print Media campaign for tractor tyres covering nearly 200 towns through 100 dailies was launched. An extensive Consumer reach programme was carried out covering major Tractor markets. The only Rural Olympics in the country held at Kila Raipur, Punjab was sponsored by JK Tyre, which was indeed a roaring success, All these efforts resulted in increased customer awareness. 

OFF THE ROAD TYRES (OTR): 

OTR tyres of the Company have been performing extremely well in the field and are considered as one of the best quality product in the market. Huge investments in infrastructure and road construction network has fuelled demand for OTR tyres. To meet this growing demand, the Company has undertaken further expansion in OTR capacities. 

MOTORSPORTS: 
Think of Motor Sports in India and JK Tyre is there at the heart of the action, be it in the field of Rallying, Racing or Karting. The JK Tyre National Racing Championship was launched on a new platform, in consortium with Maruti, General Motors and Hyundai powered the LGB Formula Swift, Formula Rolon Chevrolet and LGB Formula Hyundai, All the powerful racing cars were fitted with specially designed technologically advanced JK Tyre 'FORMULA TYRES'. 

ORIGINAL EQUIPMENT MANUFACTURERS (OEMs): 

The Indian automotive Industry is becoming increasingly globalised and is operating in a highly dynamic environment with rising customer expectations. JK Tyre is proud to be associated with leading automotive majors of the country and continues to be a preferred supplier. 

JK Tyre has been working closely with its OEM partners to develop products with ever changing and increasingly demanding performance by its customers.

Acknowledging their technological capability, Maruti Udyog has recognized JK Tyres as leading vendor and conferred 'AWARD FOR OVERALL DESIGN EXCELLENCE' 'Vendor Managed Inventory Award' by Eicher Motors. 

 As is known, Renault of France is shortly launching their world platform model 'LOGAN' in India in collaboration with Mahindra and Mahindra, It is their privilege to be a sole supplier to this prestigious project. 

 Strong OEM Presence: 

· Only Indian Tyre vendor approved by Suzuki Motor to work for 'Swift Car' right from Vehicle Design stage as also for new higher models 

· JK Tyre approved exclusive supplier for MandM Renault Logan in face of global competition 

· OE supplier to all major Automobile manufacturers 

GLOBAL PRESENCE: 

The Company's continued thrust on strengthening international network and building JK Tyre bran in the overseas markets has helped to achieve Export turnover of Rs.4350.000 millions during the year another new high. Extensive market network spread over 70 countries across b continents i the strength behind the excellent growth o global business, This performance has beer recognized and yet again the Company has received Top Export Award bestowed by CAPEXIL

Highly Automated Manufacturing: 

· Highly automated processes with computer controlled on line measuring systems 

· Fully automated tyre building machines for all categories of radial tyres 

· State-of-tree-,art mixing facility 

Outsourcing activities from China for international markets in JK Tyre brand is gaining momentum and this will further increase in the current financial year 

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.39.35
UK Pound	1	Rs.80.52
Euro	1	Rs.57.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		73

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

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