MIRA INFORM REPORT

Report Date :

13.02.2008

IDENTIFICATION DETAILS

Name :	HYUNDAI MOTOR INDIA LIMITED
Registered Office :	Plot No. H-1, SIPCOT Industrial Park, Irrungattukottai, Sriperumpudur Taluk, Kanchipuram District - 602 105, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	06.05.1996
Com. Reg. No.:	18-35377
CIN No.: [Company Identification No.]	U29309TN1996PLC035377
TAN No.: [Tax Deduction & Collection Account No.]	CHEH02069E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturing of Motor Cars, Parts and Accessories.

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 100870400
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject has been a successful car producer in India and has emerged as 2^nd largest players in the country. The company has been doing well. Financial position is good. The company has been doing very well. Its financial position is good. Its payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office :	Plot No. H-1, SIPCOT Industrial Park, Irrungattukottai, Sriperumpudur Taluk, Kanchipuram District - 602 105, Tamilnadu, India
Tel. No.:	91-4111-256111 / 256275
Fax No.:	91-4111-256280 / 256365
E-Mail :	info@hyundaiindia.com secl@hmil.net
Website :	http://www.hyundaiindia.com http://www.hyundai.co.in
Location :	Rented
Corporate Office :	NP 54, Developed Plots, Thiru Vi Ka Industrial Estate, Guindy, Chennai – 600 032, Tamilnadu
Tel. No.:	91-44-22329560 / 22340174 / 2233471 / 22343763 / 22343765 / 22343856
Fax No.:	91-44-22334924
Factory 1 :	Plot No. H-1, SIPCOT Industrial Park, Irrungattukottai, Sriperumpudur Taluk, Kanchipuram District - 602 105, Tamilnadu
Administrative Offices:	39, T.T.K. Road, Alwarpet, Chennai - 600 018, Tamilnadu
Tel. No.:	91-44-24990013 / 24990531 / 24990678 / 24991938
Fax No.:	91-44-24994355 / 24997164

DIRECTORS

Name :	Mr. Avinash Prakash Gandhi
Designation :	Director
Name :	Mr. Byung Ouk Lee
Designation :	Director
Name :	Mr. Jong Hyok Kim
Designation :	Director
Name :	Mr. Jung Dae Lee
Designation :	Director
Name :	Mr. Swan Kwon
Designation :	Director
Name :	Mr. Wan Ki Park
Designation :	Director
Name :	Mr. Yong Whan Ahn
Designation :	Director
Name :	Mr. Heung Soo Lheem
Designation :	Managing Director and Additional Director
Name :	Mr. Han Woo Park
Designation :	Executive Director (Administrative)
Name :	Mr. Hyun Sup Song
Designation :	Executive Director (Production)
Name :	Mr. Jong Yeol Lee
Designation :	Director
Name :	Mr. Wang Sik Min
Designation :	Additional Director
Name :	Mr. Tae Hwan Chung
Designation :	Director
Name :	Mr. Ho Li Lee
Designation :	Director

KEY EXECUTIVES

Name :	Mr. B. V. R. Subbu
Designation :	President
Name :	Mr. M. P. Suresh Kumar
Designation :	Company Secretary
Name :	Mr. G. Arunmozhi
Designation :	Company Secretary
Name :	Mrs. J Lakshmi
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Hyundai Motor Company of South Korea	8125411

BUSINESS DETAILS

Line of Business :	Manufacturing of Motor Cars, Parts and Accessories.
Products :	Passenger Cars Vehicles Spares Parts Traded Goods
Brand Names :	‘SANTRO’
Export to:	Europe (United Kingdom, Malta, Serbia and Montenegro), Africa and Middle Ease (Turkey, South Cyprus, Afganisthan, Qatar, Lebanon and Ceuta) and in Latin America (Panama, Bermuda)

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Motor Car	Vehicles	124800	93888

GENERAL INFORMATION

No. of Employees :

3600

Bankers :

· ABN Amro Bank N V, Chennai - 600 034, Tamilnadu · American Express Bank Limited, Mount Road, Chennai-600 002, Tamilnadu · Citi Bank, Mount Road, Chennai - 600 002, Tamilnadu · ICICI Bank, Chennai-600 018, Tamilnadu · IndusInd Bank Limited, Chennai, Tamilnadu · Bank of America, Chennai, Tamilnadu · HDFC Bank Limited, Chennai, Tamilnadu · State Bank of India, Chennai, Tamilnadu · Punjab National Bank, Chennai, Tamilnadu · Cho Hung Bank, South Korea, Chennai, Tamilnadu · The Sumitomo Bank Limited, Chennai, Tamilnadu

Banking Relations :	Good
Auditors :
Name :	Arthur Andersen and Associates Chartered Accountants
Address :	8^th Floor, West Minister, 108, Radhakrishnan Salai, Chennai - 600 004, Tamilnadu
Parent Company :	Hyundai Motor Company 140-2, Key Dong, Chongro-Ku, Seoul, South Korea.

CAPITAL STRUCTURE

Authorized Capital:

No. of Shares	Type	Value	Amount
14000000	Equity Shares	Rs. 1000.00 each	Rs. 14000.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
8125400	Equity Shares	Rs. 1000.00 each	Rs. 8125.400 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		8125.400	8125.400	8125.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17092.200	12424.800	7173.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25217.600	20550.200	15299.200
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		18896.700	5219.500	4180.900
TOTAL BORROWING		18896.700	5219.500	4180.900
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		44114.300	25769.700	19480.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17486.300	17361.500	16949.100
Capital work-in-progress		18094.000	1672.100	0.000
INVESTMENT		195.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12805.900	7415.400	6341.400
	Sundry Debtors	4310.600	2248.800	3063.300
	Cash & Bank Balances	2402.900	5351.000	1463.200
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13011.300	9674.000	4624.800
Total Current Assets		32530.700	24689.200	15492.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	15359.500	11644.400	10410.600
	Provisions	8832.200	6308.700	2551.100
Total Current Liabilities		24191.700	17953.100	12961.700
Net Current Assets		8339.000	6736.100	2531.000
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		44114.300	25769.700	19480.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		99158.800	85401.100	73519.000
Other Income		3568.600	4205.900	3491.300
Stock Adjustments		2522.200	629.900	977.700
Total Income		105249.600	90236.900	77988.000
Profit/(Loss) Before Tax		7148.500	8048.800	6111.100
Provision for Taxation		2481.100	2797.800	2041.900
Profit/(Loss) After Tax		4667.400	5251.000	4069.200
Export Value		N.A.	26755.89	N.A.
Expenditures :
	Raw Materials	69416.600	57059.800	49310.900
	Excise Duty	11533.900	11234.100	10460.000
	Power and Fuel Cost	686.800	638.600	565.300
	Other Manufacturing Expenses	2369.700	2174.300	1638.900
	Employee Cost	1886.400	1613.600	1332.600
	Selling and Administration Expenses	8000.900	6286.200	5621.200
	Miscellaneous Expenses	476.700	197.900	315.800
	Interest and Financial Charges	140.600	33.500	132.100
	Depreciation	3589.500	2950.100	2500.100
Total Expenditure		98101.100	82188.100	71876.900

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.43	5.82	5.22
Net Profit Margin (PBT/Sales)	(%)	7.21	9.42	8.31
Return on Total Assets (PBT/Total Assets}	(%)	14.29	19.14	18.84
Return on Investment (ROI) (PBT/Networth)		0.28	0.39	0.40
Debt Equity Ratio (Total Liability/Networth)		1.71	1.13	1.12
Current Ratio (Current Asset/Current Liability)		1.34	1.37	1.19

LOCAL AGENCY FURTHER INFORMATION

Three models of Santro are:

· L2 - (with A/C)

· GLS1 - (with Bar Window, Central Locking & A/C)

· GLS2 - (with Power Steering, Bar Window, Central Locking & A/C)

The Santro (which is available in three variants – the L2, GLS1 and GLS2) was launched in September, 1998.

The company plans to build a world-class facility, which will offer quality products and services to the discerning consume.

The company also plans to introduce several new models in the Indian market, and the pre-production and road test of its next car is already being conducted. Code-named the LC-I, the company plans to introduce a mid-sized (1400-1800 cc) car in October, 1999. Although similar to the company’s accent which already sells in company’s design centre at Namyong and Korea. The company also plans to launch at a later date a multi-utility vehicle in the Indian market.

The company has targeted a production of 60,000 Santros per year.

Website details:

• Profile

Subject is a wholly owned subsidiary of Korea based Subject Company and is the second largest and the fastest growing car manufacturer in India. Subject markets 31 variants of passenger cars in six segments. The company has recorded combined sales of 252851 during the calendar year of 2005 with a growth of 17.26% over the previous year. 

Subject is India's fastest growing car company having rolled-out 1 million cars in just 90 months since its inception and is the largest exporter of passenger cars with exports of over Rs.18000.000 Millions.

Subject has its manufacturing plant near Chennai, Tamil Nadu and this plant has had the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, Subject has announced plans for its second plant, which will produce 300000 units per annum which will raise the total production capacity to 600000 per annum by 2007. 

 The year 2005 has been a significant year for subject. The Company achieved a significant milestone by rolling out the fastest 200000th export car. Subject exports to over 60 countries globally and made a foray into the highly competitive UK market by exporting its first shipment of 820 units. 

Subject has many awards in its bouquet. It bagged Executive Car of the Year 2006 for its Sonata Embera and the award given by Business Standard Motoring Magazine. 

Subject has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

PRESS CLIPPINGS

3rd October , 2007

Hyundai Motor India Launches 3rd Free Car Care Clinic

Two-week Free Car Care Clinic at 320 dealer workshops across India

New Delhi, October 1, 2007: Hyundai Motor India, the country's second largest automobile manufacturer and leading passenger car exporter launched its third nationwide Free Car Care Clinic, in an effort to extend the advantage of its excellent services and free check-up to a larger number of its customers. The Free Car Care Clinic was successfully introduced in 2006 and subsequently conducted in Jan ~ Feb ’07. Following the tremendous success of the campaign last year, the Free Car Care Clinic 2007 will be a two-week long campaign, running from October 3rd to October 17th 2007 at over 320 Hyundai dealer workshops across the country.

The Free Car Care Clinic will offer a comprehensive 80 point check-up and a thorough examination of the engine, transmission, electricals, under-body, AC, body etc. Hyundai customers can avail this Free Check-up at any of its 320 dealer workshops across the country. Customers can also avail of free car wash and attractive discounts on all spare parts. Twenty percent discounts will also be given on labour and a special discount on the emblem. For the first time, customers can also avail 20% discount on extended warranty. Special discounts are offered on service merchandising like engine flush, anti-rust coating, engine de-carbonisation and car polish.

Best Maintained Car’ award will be given to honour and recognise the customers who have taken special care in maintaining the car, which are over 5 years old and have been driven 100,000 kms. Attractive regional awards are also up for grabs for the customers. Additional attractions like Twenty-Twenty discount offer to customers with car mileage more than 100,000 kms have also been introduced for the first time.

During the campaign, Hyundai customers will also have the option to test drive any car from the Hyundai stable. The campaign also gives opportunity to win attractive prizes through a lucky draw.

Speaking on the launch of the campaign, Senior General Manager for Hyundai Customer Care Service, B Mani said: "Free Car Care Clinic has become stand out service activity which symbolises the bond Hyundai shares with their esteemed customers. A comprehensive package at value for cost prices is offered to acknowledge their belief in our quality service and brand. We are offering special price for extended warranty to customers and also for the first time in the country, plan to reward the customers who take special care of cars and maintain them exceedingly well. Continuing the strong base set in last two camps, we further expect a good turnout at the camp.”

1st October , 2007

Hyundai Motor India registers 9.7% increase in domestic sales in Sept ‘07

New Delhi, October 1, 2007: Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer and the largest passenger car exporter, registered an impressive growth in the month of September 2007, as it recorded a 9.7% increase in its domestic vehicle sales over September, 2006.

The total sales stood at 27,514 units. While the domestic market accounted for 18,009 units, exports totaled 9,505 units in September 2007. The cumulative sales for September, 2006 stood at 26,491 units. Overall sales at Hyundai Motor India recorded a growth of 3.9% in September 2007 over the same month last year.

Commenting on the September sales, Arvind Saxena, Vice-President - Marketing and Sales, HMI said: “domestic sales has been good for Hyundai Motor India this month and we feel that with our new plant starting production in the last quarter of the current year we will be further able to boost our sales in the coming month both in the domestic and overseas market”.

The segment-wise cumulative sales in the month of September 2007 are as follows: A1 Segment — 23,057 units; A2 Segment – 4,402 units; A3 Segment — 3 units; A4 Segment — 36 units; and SUV Segment —16 units.

4th July, 2007

Hyundai Motor India introduces CNG variant

New Delhi, July 4, 2007: Hyundai Motor India, the second largest passenger car manufacturer in India and the largest exporter of automobiles today added to its range of Santro variants by introducing an alternative fuel variant – the CNG powered Santro.

Santro, the ‘Sunshine Car’ which has brought happiness and cheer to over a million Indian car buyers since its launch in late 1998 will now provide the potential owners a more economical and environment friendly drive. The dual fuel Santro will use Compressed Natural Gas (CNG) as an alternate fuel. The Santro comes with a 1.1 litre petrol engine which without any modification is compatible with CNG.

Subject has tied up with the leading CNG kit supplier Minda Auto Gas Ltd to supply the CNG kits. The advanced kit is not only safe but with an advanced Lambda control system ensures that it meets the Euro III emission norms. To ensure that there are no flaws in the fitment process, Subject has an exclusive arrangement with leading fitment specialist NGVI of Korea to retro fit the kits on the Santro model.

Initially, the CNG Santro will be initially launched in Delhi and all Hyundai dealers in Delhi in collaboration with NGVI India are equipped to sell and service the CNG Santro. The CNG Santro too enjoys the same 2 year, unlimited mileage warranty and there is an additional warranty for the same period on the CNG kit and fitment as well.

The CNG Santro would have a manual selector switch, which would enable the driver to easily switch from gasoline to CNG and vice versa. The on-board CNG cylinder has a capacity of approximately 12 kg and the running cost on CNG for the Santro is estimated to be in the region of Rs 1/km or even less depending on the driving cycle. This leads to a savings of almost 60 – 70% for the consumer. The cost of the CNG Santro (XK, non-AC) is Rs 325,361 (ex-showroom, New Delhi).

Commenting on the launch of the CNG Santro, Arvind Saxena VP – Marketing and Sales Hyundai Motor India said “CNG has established itself as an eco-friendly and economical fuel and HMI will now offer this choice of fuel to its Santro customers. We feel that this will increase the attractiveness of the Santro as it will considerably bring down the running cost. Also the fuel is eco-friendly which adds to its attractiveness”

About HMIL

Subject is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. Subject presently markets 20 variants of passenger cars in six segments. The Santro in the B segment, Getz Prime in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units.

Subject’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, Subject is setting up its second plant, which will produce an additional 300,000 units per annum, raising Subject’s total production capacity to 600,000 units per annum by end of 2007.

Subject is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, Subject plans to expand its dealer network, which will be increased from 183 to 250 this year. And with the company’s greater focus on the quality of its after-sales service, subject’s service network will be expanded to around 1,000 in 2007.

The year 2006 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to over 65 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet another path-breaking record in its young journey by rolling out the fastest 10,00,000th car.

The Hyundai Verna has bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India's leading automotive publication – Overdrive, the “Best Mid-size Car of the Year” award by the NDTV Profit C&B Awards 2007, the “Best Value for Money Car” by the CNBC Autocar Auto awards and ‘Performance Car of the Year 2007’ from Business Standard Motoring.

Last Year Sonata Embera won the ‘Executive Car of The Year 2006’ award from Business Standard Motoring Magazine and NDTV Profit – Car & Bike declared the Tucson as the ‘SUV of The Year 2006’.

Subject has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

2nd February , 2008

Hyundai Motor India Inaugurates New Plant

Production capacity doubled, stage set for second successful decade

• Total investment of USD1 billion
• New plant capacity of 0.300 Million units per annum - Doubles overall capacity to 0.600 Million units per annum
• 2008 target: Production of 0.530 Milliojn units
• New plant to strengthen India as Hyundai`s global manufacturing hub for small cars
• Dealer network to be strengthened

Chennai, February 2, 2008: Hyundai Motor India Ltd today commissioned operations at its second manufacturing plant at Sriperumbudur in a glittering function which included VIPs, industry and political leaders, HMI`s overseas and domestic business partners, members of the national and international media. Also present for the inauguration was the Chairman & CEO of Hyundai Motor Company, Mong-Koo Chung, who had flown in from Korea specially for the inauguration.

Mr H S Lheem-MD HMIL, Mr B K Suh-The Vice Chairman HMC, Mr Mong-Koo Chung-The Chairman & CEO, HMC along with the Hon`ble Chief Minister of Tamil Nadu, Dr Kalaignar M Karunanidhi at the Hyundai`s New Plant Inauguration in Chennai.

In a decade long history in India, marked by several remarkable milestones, this is perhaps Hyundai Motor India`s most significant achievement. With the commissioning of this new plant Hyundai Motor India is capable of producing 600,000 units per year doubling its present capacity of 300,000 units per annum. The new plant is located within the same 525 acre plot in Sriperumbudur adjacent to the first plant.

Inaugurating the plant, the Hon`ble Chief Minister of Tamil Nadu, Dr Kalaignar M Karunanidhi congratulated Hyundai for its dramatic growth, commenting that the company`s growth had paralleled the state`s rapid industrial development. Also present was Dr. R C Panda, Secretary, Union Ministry for Heavy Industries and Public Enterprises, Government of India, who also commended Hyundai Motor India for its contribution to the Indian industry and the Indian automobile industry in particular.

Speaking on the occasion, Hyundai Motor Company Chairman & CEO Mong-Koo Chung said: “We have recorded huge successes in India in the last 10 years, since we started operations in this country in 1996. Our new plant will be the platform for future growth. I`m sure Hyundai Motor India will play its role perfectly as a global manufacturing hub for all of Hyundai`s small car models. As we have got from India, so we seek to give not only in boosting the country`s industry and business, but in terms of being a responsible corporate citizen of India.”

The new plant will be dedicated largely to the production of Hyundai`s latest offering - the i10, winner of the most prestigious `Car of the Year` awards from the leading automotive magazines and TV channels like Business Standard Motoring, CNBC-TV18 Auto Car, the NDTV Car & Bike and the Overdrive magazine.

More importantly, the commissioning of the second plant means that Hyundai Motor India`s status as a global manufacturing hub for all small car models from Hyundai is established. Not surprisingly, Hyundai Motor India`s export destinations are expected to increase from 73 to 90 countries by the end of 2008.

Construction of the second plant began in November 2005 and was completed in a record of 19 months. Hyundai has committed a total investment of US $1 billion for the next phase. With the commissioning of the new plant, the company has set a manufacturing target of 0.530 Million units for 2008.

To support the domestic growth, the company has already strengthened its dealer network from 183 to 230 in 2007; by the end of 2008, it expects to expand this to a 300-strong network.

Keeping pace with its production and sales growth, Hyundai has also become a leader in Corporate Social Responsibility (CSR) areas creating awareness of road safety through the Hyundai Traffic Squad involving its unique student volunteer scheme, in partnership with the Institute of Road Traffic Education and the traffic police departments.

In addition, Hyundai Motor India in an active partnership with the ITI in Guwahati has helped improve the infrastructure and training facility at the institute. The CSR activities also involve the area in and around the Chennai factory in Sriperumbudur where HMI has taken upon itself to improve the basic facilities in the primary schools in the area. From donating chairs and tables to paving the school area HMI is committed to improving the learning conditions in these schools. Hyundai Motor India Foundation is the social arm of HMI through which it donated more than Rs.83 million in 2007 to support various social development initiatives.

About HMIL

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars across segments. The Santro in the B segment, Getz Prime, i10 in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY) 2007, an increase of 9.2 percent over CY 2006. In the domestic market it clocked a growth of 7.6 percent as compared to 2006 with 200,412 units, while overseas sales grew by 11.8 percent, with exports of 126,748 units.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boast the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum.

HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 230 to 300 this year.

The year 2007 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai exports to over 73 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attaining other milestones with the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 15,00,000th car.

The Hyundai Verna has bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India`s leading automotive publication – Overdrive, the “Best Mid-size Car of the Year” award by the NDTV Profit C&B Awards 2007, the “Best Value for Money Car” by the CNBC Autocar Auto awards and ‘Performance Car of the Year 2007’ from Business Standard Motoring.

Last Year Sonata Embera won the ‘Executive Car of The Year 2006’ award from Business Standard Motoring Magazine and NDTV Profit – Car & Bike declared the Tucson as the ‘SUV of The Year 2006’. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

1st February , 2008

Hyundai posts highest ever sales with 37,701 units

-Domestic sales up by 39.1%, overall growth by 41.4%-

New Delhi, February 1, 2008: Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer and the largest passenger car exporter, today announced a record sales growth for the month of January 2008.

The company registered a robust growth in the month of January 2008, its highest ever monthly sales since inception, as it recorded an overall growth of 41.4 % in January 2008 over the same month last year. The domestic sales grew by 39.1 % while the exports grew by 45.6 % over January 2007. Also since the launch of i10 in the month of October last year, the sale of the vehicle has crossed 25,000 units.

The total sales stood at 37,701 units. While the domestic market accounted for 24,301 units, exports totaled 13,400 units in January 2008. The cumulative sales for January 2007 had been 26,661 units.

Commenting on the record sales, H S Lheem, Managing Director, HMIL said, “We are absolutely delighted by these figures and we believe it shows the strength of the brand Hyundai. I am particularly grateful to all of our employees, dealers & suppliers whose level of commitment to outstanding customer service has been instrumental in our growth.”

"The all-new i10 is off to an amazing start. It has emerged as a clear winner by winning the hearts of the consumers and the industry alike, it has also won all the prestigious ‘Car of the year’ awards by Business Standard Motoring, CNBC TV18 Autocar, NDTV Car and Bike India and Overdrive magazine," said Mr. Lheem.

"We are also doubling the production capacity to 600,000 units per annum by inaugurating the second plant tomorrow in Chennai which will have a capacity of 300,000 units per annum , to cater to the increased market demand for Hyundai brand of vehicles in India and overseas.” he added.

The segment-wise cumulative sales in the month of January 2008 are as follows: A1 Segment — 33,434 units; A2 Segment – 4236 units; A3 Segment —1unit; A4 Segment — 25 units; and SUV Segment — 5 units.

About HMIL

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars across segments. The Santro in the B segment, Getz Prime, i10 in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment.

Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registering total sales of 327,160 vehicles in the calendar year (CY) 2007, an increase of 9.2 percent over CY 2006. In the domestic market it clocked a growth of 7.6 percent as compared to 2006 with 200,412 units, while overseas sales grew by 11.8 percent, with exports of 126,748 units.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boast the most advanced production, quality and testing capabilities in the country. In continuation of its commitment to provide the Indian customer with global technology, HMIL is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum.

HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 230 to 300 this year.

The year 2007 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai exports to over 73 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attaining other milestones with the launch of the i10 and yet another path-breaking record in its young journey by rolling out the fastest 15,00,000th car.

The Hyundai Verna has bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India`s leading automotive publication – Overdrive, the “Best Mid-size Car of the Year” award by the NDTV Profit C&B Awards 2007, the “Best Value for Money Car” by the CNBC Autocar Auto awards and ‘Performance Car of the Year 2007’ from Business Standard Motoring.

Last Year Sonata Embera won the ‘Executive Car of The Year 2006’ award from Business Standard Motoring Magazine and NDTV Profit – Car & Bike declared the Tucson as the ‘SUV of The Year 2006’. HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

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. 39.65
UK Pound	1	Rs. 77.41
Euro	1	Rs. 57.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--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	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 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