MIRA INFORM REPORT

Report Date :

02.12.2008

IDENTIFICATION DETAILS

Name :	MICHELIN INDIA TYRES PRIVATE LIMITED
Formerly Known As :	Michelin Apollo Tyres private limited
Registered Office :	84 E C -6, Lane (Opposite Central Avenue), Sainik Farm, New Delhi – 110 062
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	12.11.2003
Com. Reg. No.:	55-123044
CIN No.: [Company Identification No.]	U25199DL2003PTC123044
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Tyres

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.	Small

Maximum Credit Limit :	USD 1900000
Status :	New Company
Payment Behaviour :	Regular
Litigation :	----
Comments :	Subject is a part Michelin, multi – national tyre manufacturers. Presently, subject imports tyres in India. It has plans to set up a production base. The company has huge accumulated losses but due to the exposure of parent company, it can be regarded for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	84 E C -6, Lane (Opposite Central Avenue), Sainik Farm, New Delhi – 110 062, India
Tel. No.:	91-11-30835100
Fax No.:	91-11-30835104
E-Mail :	vinod.bidkar@in.michelin.com info@archerangel.com
Website :	www.michelin.in www.michelin.com
Factory :	Unit 401-404, 4^th Floor, Copia Corporate Suites, Jasola District Centre, New Delhi – 110 076, India
E-Mail :	customer.care@in.michelin.com

DIRECTORS

Name :	Mr. Herve Coyco
Designation :	Director
Address :	C/O 77 Robinson Road, # 34-00 SIA Building, Singapore – 068896
Date of Birth/Age :	25.06.1954
Date of Appointment :	01.01.2006
Name :	Mr. Herve Richert
Designation :	Director
Address :	3, Faber Park, Singapore – 129094
Date of Birth/Age :	28.10.1964
Date of Appointment :	29.01.2002
Date of Ceasing :	22.11.2007
Name :	Mr. Herve Dub
Designation :	Director
Address :	68 Jor Bagh, New Delhi – 110 033, India
Date of Birth/Age :	13.06.1955
Date of Appointment :	20.10.2004
Name :	Mr. Jean Paul Charles Fulcran Caylar
Designation :	Director
Address :	68 Jor Bagh, New Delhi – 110 033, India
Date of Birth/Age :	21.10.1951
Date of Appointment :	01.07.2007
Name :	Mr. Vinod Bidkar
Designation :	Director
Address :	C -612, Ganesh Nagar- 2, Shakarpur, Delhi – 110 092, India
Date of Birth/Age :	16.05.1962
Date of Appointment :	30.09.2005
Name :	Mr. Prashant Prabhu
Designation :	Director
Address :	82 Grange Road, # 05-02 The Colonnade Singapore 249587
Date of Birth/Age :	31.08.1952
Date of Appointment :	11.12.2007
Name :	Mr. Chan Hock Sen
Designation :	Director
Address :	62 Merryn Road, Singpaore
Date of Birth/Age :	12.12.1957
Date of Appointment :	20.10.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Compagnie Financiere Michelin	14990000
Nitor AG	10000

AS ON 30.09.2007

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Tyres
Products :	· Passenger Car Tyres · SUV Tyres · Tubes · Flabs

GENERAL INFORMATION

Bankers :	Not Available
Banking Relations :	----
Auditors :
Name I :	Price Waterhouse Chartered Accountants
Address :	Building - 8, 7^th and 8^th Floor, Tower – B, DLF Cyber City, Gurgaon – 122 002, Haryana, India
Name II :	Love Locks and Lewes Chartered Accountants
Address 1 :	P -1, Aditya Vihar, Saidulajab, Opposite D – Block, Saket, Mehrauli Badarpur – 110 030, New Delhi, India
Address 2 :	Building - 8, 7th and 8th Floor, Tower – B, DLF Cyber City, Gurgaon – 122 002, Haryana, India
Holding Company :	Compagnie Financiere Michelin
Group Company :	· Michelin Asia Pacific Limited · Michelin Siam Group Company limited · Michelin Asia – Pacific Pte limited · Michelin Research Asia BV · Michelin Siam Company Thailand · Michelin Tyre Public Limited · Michelin Asia (Singapore) Company Pte Limited · Michelin Australia Pty limited · Michelin Malaysia SDN BHD · Ninon Michelin Tyre Company Limited · Michelin India Private Limited · Michelin Shenyang Tire Company limited
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
54000000	Equity Shares	Rs. 10/- Each	Rs. 540.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- Each	Rs. 150.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		150.000	150.000	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		749.500	749.500	749.500
4] (Accumulated Losses)		[524.775]	[362.292]	[76.477]
NETWORTH		374.725	537.208	823.023
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	1.574	0.832
TOTAL		374.725	538.782	823.855
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		182.983	184.937	8.600
Capital work-in-progress		0.000	0.368	372.227
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	317.359	170.008	229.143
	Sundry Debtors	98.456	44.987	21.174
	Cash & Bank Balances	402.636	283.212	238.705
	Other Current Assets	1.351	2.139	0.000
	Loans & Advances	29.989	180.447	13.787
Total Current Assets		849.791	680.793	502.809
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	657.282	326.821	59.666
	Provisions	0.767	0.495	0.115
Total Current Liabilities		658.049	327.316	59.781
Net Current Assets		191.742	353.477	443.028
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		374.725	538.782	823.855

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		935.844	520.912	221.676
Other Income		23.536	8.290	28.174
Total Income		959.380	529.202	249.850
Profit/(Loss) Before Tax		(160.523)	(281.160)	[75.645]
Provision for Taxation		1.960	4.655	[0.832]
Profit/(Loss) After Tax		(162.483)	(285.815)	[76.477]
Import Value		NA	NA	243.389
Expenditures :
	Cost of Goods Sold	NA	NA	184.537
	Operating Expenses	NA	NA	138.195
	Finance Charges	5.606	2.273	1.844
	Depreciation & Amortization	4.915	1.657	0.919
	Other Expenditure	1109.382	806.432	0.000
Total Expenditure		1119.903	810.362	325.495

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(16.93)	(54.00)	[30.61]
Net Profit Margin (PBT/Sales)	(%)	(17.15)	(53.97)	[34.12]
Return on Total Assets (PBT/Total Assets}	(%)	(15.54)	(32.46)	[8.56]
Return on Investment (ROI) (PBT/Networth)		(0.42)	(0.52)	[0.09]
Debt Equity Ratio (Total Liability/Networth)		1.76	0.61	0.07
Current Ratio (Current Asset/Current Liability)		1.29	2.08	8.41

LOCAL AGENCY FURTHER INFORMATION

websites DETAILS:-

History

In 1889 two brothers, André and Edouard Michelin, embarked one of the great human and industrial adventures of our times: one that shaped and continues to drive progress in modern means of transport through constant innovation

From the invention of radial tires to that of Pax System, and from the first gastronomic guide to the steel wheel, subject has played an active role at every stage of the automotive adventure.

Press releases:-

Michelin Keen to Enter the Oem Space in India

CHENNAI: Global tyre maker Michelin is keen to enter the OEM (original equipment manufacturer) space of the Indian passenger car and truck markets.

Indicating this in an interaction with The Hindu here on Sunday, Herve Dub, Chief Executive Officer, Michelin India Tyres Private Ltd. said, "we are in discussions with some OEMs.''. "There will be some good news on this front in 12 months,'' he added.

Michelin had strong links with OEMs globally. This would help it to forge relationships in the Indian OEM space, he said. There was room for more players though the competition in the Indian tyre industry was tough. In the bus segment, Michelin is the OEM supplier to Volvo's Mark II vehicles. The company, he said, had initiated discussions with some truck manufacturers to become their OEM supplier. Currently, Michelin was importing tyres from its Chinese plant to service the truck and bus markets in India. For the replacement tyre market for cars, the tyres were sourced from its facilities in Thailand, he added.

Mr. Dub was here to inaugurate Michelin's first Priority Partner Outlet (Lal Enterprises). Mumbai, Pune, Kochi and Coimbatore, too, have Michelin Priority Partner Outlets (MPP). "These (MPP outlets) are the first shop of the kind in India,'' he said. They offered a new shopping experience, where the environment would be clean and professionals would be providing right advice and guidance. These outlets would promote Michelin's `boutique' products, he added.

The Indian tyre field was dominated by the `bias' (nylon cross-ply) market, comprising close to 99 per cent o the tyre industry. Michelin, on the other hand, was a dominant player in the radial segment, he said. "He cited the road conditions, overloading of trucks, poor upkeep of trucks and the structure of truck ownership among the reasons for the dominance of the Indian market by bias tyres.

Mr. Dub said that Michelin's decision on a production base in India would also have to take into account the pace of `radialisation' of the tyre industry. "We need a critical volume,'' he said, pointing to Michelin's aggressive promotion of radial tyres in India.

In this context, he said Michelin had only postponed and not cancelled its plan for setting up a production unit in India. Nothing had changed drastically since Michelin had made an announcement some time ago on the subject after buying out Apollo Tyres in the joint venture, he pointed out.

Following the buy-out of Apollo Tyres, Michelin India Tyres Private Ltd. has become a fully owned outfit of the Michelin Group.

Michelin chief expects big paybacks from India

BS Corporate Bureau in New Delhi | November 18, 2003 08:39 IST

The head of the Michelin group Edouard Michelin said on Monday that he expected big paybacks from India as the newly announced partnership with Apollo Tyres was fully operational in four years.

"Our tyres sell at a premium -- in the range of $200-250 a unit. If we sell one million tyres in India as envisaged, our revenues per annum would touch $200-250 million as and when we start selling as many tyres. We are expecting the radial tyre market to grow exponentially in the next few years and we are confident of achieving this," he explained.

"However, it is not just the payout which sets our pace. We also want to be the leading player in the field and contribute to the growth of the radial tyre or high-performance tyre market in the country," he said.

Michelin has made big investments in China and is amazed by the rapid radialisation in the country. "It was amazing. In ten years, radial tyre sales to the total tyre sales in China has risen from zero to 20 per cent. The same pace may or may not happen in India. Of course, because India is a democratic country and decisions take some time to come through," he said, clarifying that he was most comfortable investing in India, despite the infrastructural bottlenecks which needed to be cleared faster.

On being asked whether Michelin's investment in Apollo will have any bearing on the Indian companies' expansion plans, he said, "I think the core of the partnership is to speed up together the availability of high performance products for the Indian market, especially truck tyres in which Michelin has an expertise."

"A partnership between two competitors requires important chemistry of vision and of mind... We felt that beyond the operational partnership of the joint venture, it was meaningful for both Apollo and for us to build a commonality of interest at the shareholders' level. Michelin becoming a significant shareholder in Apollo will mean it has the same interest as Apollo's top management," he responded when asked why the company also picked up a 14.9 per cent stake in Apollo apart from setting up the 51:49 manufacturing joint venture with the same company.

"You can also ask why Michelin does not go alone. In fact, we took 40-50 years to firm up our plans for India. Through our venture with Apollo, we have recognised the inherent strength, which will be a strong asset for speeding up of the radial tyre market. Beyond the short-term financial reasoning, one should look at the pay back we are going to in the long run," he said.

Michelin launches new range of tyres

New Delhi, May 3

Tyre manufacturer Michelin on Wednesday launched its new range of tyres — Energy XM 1 — in the country for the mid-size car segment.

The tyres last longer and offer better fuel economy, according to the company.

"The Energy XM1 range of tyres has been developed using the Green "X" silica-based compound, which not only reduces the rolling resistance, resulting in lower fuel consumption, but also helps in replacing carbon black, which is a fossil fuel derivative," said Mr Herve Dub, Chief Executive Officer, Michelin India.

The tyres also offer improved wet grip and dry handling capabilities, according to the company.

Chinese import

The tyres will be imported from China. The company plans to set up its manufacturing facility in India but no time-frame has been set for this. The investment for the facility will be market driven, said Mr Dub.

Michelin project not cancelled, ‘only postponed’

Chennai, July 17

Global tyre maker Michelin has only postponed and not cancelled its plan for setting up a production unit in India.

Asserting this in an interaction with this correspondent here on Sunday, Mr Herve Dub, Chief Executive Officer (CEO), Michelin India Tyres Private Ltd, said nothing on the ground had changed since it had made an announcement nine months ago on the issue after buying out Apollo Tyres in the joint venture.

"There is no precise plan at the moment," Mr Dub said.

He was unwilling to hazard any guess on when Michelin production base would come into being in India.

Following the buy-out of Apollo Tyres, Michelin India Tyres Private Ltd has become a fully owned outfit of Michelin Group.

Mr Dub was here to inaugurate Michelin's first Priority Partner Outlet (Lal Enterprises). Michelin has similar Priority Partner Outlets in Mumbai, Pune, Kochi and Coimbatore.

The Indian tyre field was dominated by bias market, comprising close to 99 per cent the tyre industry.

Michelin, on the other hand, is a dominant player in the radial segment.

Mr Dub felt that Michelin's decision on production base would also have to take into account the pace of `radialisation' of the Indian tyre industry.

Bias tyres

"We need a critical volume," he said, pointing to Michelin's aggressive promotion of radial tyres in India. "India is one of the kinds to have 99 per cent bias market," he said. He cited the road conditions, overloading of trucks, poor upkeep of trucks and the structure of truck ownership among the reasons for the dominance of Indian market by bias tyres.

Fielding a range of questions, Mr Dub said: "India is an important market." Michelin wished to grow steadily in India. Though the French major was present only in the replacement space of the passenger car market, it was keen to enter the OEM (original equipment manufacturer) segment. "We are in discussions with some OEMs," he said. "There will be some good news on this front in 12 months," he added.

The CEO said Michelin had strong links with OEMs globally. He expected this to come in handy for it to break into the Indian OEM space. To a question, he said there was room for more players though the competition in Indian tyre industry had turned tough.

In the bus segment, Michelin is the OEM supplier to Volvo's Mark II vehicles. The company, he said, had opened up parleys with some truck makers to become OEM supplier.

Currently, Michelin was importing tyres from its Chinese plant to service the truck and bus markets in India. For passenger cars, the tyres were sourced from its facilities in Thailand, he added.

Related Stories:

`Exit from Michelin joint venture not a setback for Apollo Tyres'

Michelin at the forefront

Michelin launches new range of tyres

Michelin's `radial' plans hinge on demand

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.50.09
UK Pound	1	Rs.76.68
Euro	1	Rs.63.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	----
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	----
--PROFITABILIRY	1~10	----
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	----
--CREDIT LINES	1~10	6
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.	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