MIRA INFORM REPORT

Report Date :

04.07.2008

IDENTIFICATION DETAILS

Name :	CUMMINS LTD.
Registered Office :	49-51 Gresham Road, Staines Middlesex TW18 2BD
Country :	United Kingdom
Financials (as on) :	31.12.2006
Date of Incorporation :	07.11.1956
Com. Reg. No.:	00573951
Legal Form :	Private Limited Liability Company (GB)
Line of Business :	Manufacturers of Industrial Diesel Engines

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 :	GBP   22,860,000
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear

Company Identification Details

Subject Reported on	CUMMINS LTD.
Holding Company	CUMMINS U.K. HOLDINGS LTD.
Ultimate Holding Company	Cummins Inc.
Trading Address	ROYAL OAK WAY,SOUTH INDSTL EST,DAVENTRY,NN11 8NU
Telephone	01327-886000

	There is every confidence this company will prove good for the assigned Credit Limit
Credit Limit	GBP   22,860,000
	Selling to this company? The Credit Limit is the recommended maximum outstanding debtor exposure at any one time.
Contract Limit	GBP   201,786,700
	Buying from this company? The Contract Limit is the recommended aggregate annual value for supply contracts.

Official Company Data

Legal Form	Private Limited Liability Company (GB)
Registration Number	00573951
Date of Incorporation	07/11/1956
Registered Office	49-51 Gresham Road, Staines Middlesex TW18 2BD
Date of Last Annual Return to Registry	22/05/2008
Activities	Manufacturers of industrial diesel engines
Accounts	The last filed accounts cover the period to 31/12/2006 and were filed on 17/10/2007 with Companies House. Please note that the transition, analysis and publication of these accounts may take up to 10 days to appear on this report.

Recently Filed Documents

Details of the most recent documents

Date Received	Description
22/05/2008	Annual Return
31/12/2006	Financial Statement / Set of Accounts

It should be noted that there is no legal requirement to file satisfaction details of mortgages/charges at Companies House.

Known Directors

DIRECTOR	RAYMOND JOHN EYRES  (One or more of this director's other companies has adverse information related to it)
Occupation	LAWYER
Address	THE BEECHES ,  EVELYN WAY STOKE D ABERNON , COBHAM , SURREY , KT11 2SJ
Country of Origin	BRITISH
Date of Birth	22/09/1949
Appointment Date	17/07/1998
Other Appointments	AUTO DIESELS POWER PLANT LIMITED, CUMMINS EMPLOYEE BENEFIT TRUSTEE LIMITED, CUMMINS LTD., CUMMINS POWER GENERATION (UK) LIMITED, CUMMINS POWER GENERATION LIMITED, CUMMINS U.K. HOLDINGS LTD., CUMMINS U.K. LIMITED, CUMMINS UK PENSION PLAN TRUSTEE LIMITED, NELSON-BURGESS, LIMITED, PETBOW LIMITED, POWER GROUP INTERNATIONAL (OVERSEAS HOLDINGS) LIMITED, POWER GROUP INTERNATIONAL LIMITED
DIRECTOR	JOHN MCCORMACK BARROWMAN
Occupation	ENGINEER
Address	68,  RUSSELL TERRACE , LEAMINGTON SPA , WARWICKSHIRE , CV31 1HE
Country of Origin	BRITISH
Date of Birth	06/03/1952
Appointment Date	01/11/2001
Other Appointments	CUMMINS LTD., CUMMINS U.K. HOLDINGS LTD.
DIRECTOR	CHRISTOPHER PAUL IBBOTSON  (One or more of this director's other companies has adverse information related to it)
Occupation	ENGINEER
Address	25,  GRIMESCAR MEADOWS BIRKBY , HUDDERSFIELD , HD2 2DZ
Country of Origin	BRITISH
Date of Birth	06/02/1958
Appointment Date	01/06/2004
Other Appointments	CUMMINS LTD., CUMMINS TURBO TECHNOLOGIES LIMITED, CUMMINS U.K. HOLDINGS LTD.
DIRECTOR	HUGH STARKIE FODEN
Occupation	EXEC DIRECTOR MARKETING
Address	HOME FARM HOUSE ,  , KENILWORTH , WARWICKSHIRE , CV8 2LF
Country of Origin	BRITISH
Date of Birth	07/12/1957
Appointment Date	01/10/2006
Other Appointments	CUMMINS LTD., CUMMINS MERCRUISER DIESEL U.K. LIMITED, CUMMINS U.K. HOLDINGS LTD., CUMMINS UK PENSION PLAN TRUSTEE LIMITED
SECRETARY	MR  RAYMOND EYRES
Address	THE BEECHES EVELYN WAY,  STOKE D ABERNON , COBHAM , SURREY , KT11 2SJ
Country of Origin	BRITISH
Date of Birth	22/09/1949
Appointment Date	02/10/1995

Recently Resigned Directors (last 3)

DIRECTOR	MICHAEL GEORGE GREEN
Occupation	MANAGING DIRECTOR
Address	1 , WILLES TERRACE , LEAMINGTON SPA , WARWICKSHIRE , - -
Country of Origin	AUSTRALIAN
Date of Birth	07/10/1946
Resignation Date	31/03/2006
DIRECTOR	PETER VINCENT MCDOWELL
Occupation	GENERAL MANAGER
Address	SPRING BARN , OAKHAM , LEICS , - -
Country of Origin	BRITISH
Date of Birth	29/04/1945
Resignation Date	01/05/2004
DIRECTOR	JACK KENNETH EDWARDS
Occupation	EXECUTIVE
Address	17 , SAINT GEORGES COURT , LONDON , - -
Country of Origin	AMERICAN
Date of Birth	04/06/1944
Resignation Date	30/04/2003

Share Summary

Share Currency:	GBP
Priniciple Shareholders:	Type Of Share	No. of Shares	Value	Voting %age
Cummins U.K. Holdings Ltd.	ORD	49,899,994	49,899,994.00	100.00
Cummins Inc	ORD	7	7.00	0.00

Mortgages and Charges

Total Registered	1
Total Outstanding	0
Total Satisfied	1
Most Recent Mortgage	27/03/1997

Date Registered	03/04/1997
Type	395
Date Created	27/03/1997
Lender	DAVENTRY DISTRICT COUNCIL
Secured On	1,531,875 AND ALL OTHER MONIES DUE O TO BECOME DUE FROM THE COMPANY TO THE CHARGEE UNDER THE TERMS OF THE CHARGE
Details	FH PROPERTY SITUATE OFF BRAUNSTON ROAD DAVENTRY NORTHAMPTONSHIRE TNO;-NN187319
Satisfied?	Fully

Public Record Information

Summary of CCJ's/Scottish Decrees

There are 1 exact unsatisfied CCJs totalling GBP 8161 in the last 72 months

Details of most recent CCJ's/Scottish Decrees

10/10/2007, a Judgment of "GBP" 229 was "Satisfied" in NORTHAMPTON court (Case No. 7XQ35710 ) against Cummins Ltd, 49-51 Gresham Rd, Staines, Middlesex, TW18 2BD

18/05/2006, a Judgment of "GBP" 8161 was made in STOURBRIDGE court (Case No. 6SX00587 ) against Cummins Engine Co Ltd, Unit 1-B, Uniongate, Ridgeway Trad Est, Iver, Buckinghamshire, SL10 9HX

Operations

Activities	Manufacturers of industrial diesel engines
Sic Code	Description
2911	Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
Staff Employed	2468
Auditors	PricewaterhouseCoopers LLP
Auditors Notes	No Qualification. The Auditors have expressed a clean opinion (i.e. unqualified with no referrals) on the latest accounts.
Bankers	Bank of Scotland PLC
Sort Codes	120103

Financial Data

Profit and Loss

Number of Weeks	52	52	52	52
Accounts Date	31/12/2006	31/12/2005	31/12/2004	31/12/2003
Currency	GBP	GBP	GBP	GBP
Units	000	000	000	000
Consolidated?	No	No	No	No
SALES	790,624	698,143	544,316	449,140
Export Sales	534,991	461,515	339,532	273,306
Cost of goods sold	664,341	593,766	478,727	417,936
GROSS PROFIT	126,283	104,377	65,589	31,204
Other Expenses	35,407	32,383	31,883	32,555
General administration costs (-)	46,061	33,227	37,959	38,204
Wages and Salaries	93,878	83,545	68,076	64,856
Depreciation	9,835	15,722	10,162	11,568
Net Operating Profit(Loss)	44,815	28,520	-4,253	-39,555
Non Trading Income	1,443	1,441	684	-
Group Non Trading Income	123	739	803	875
Total Non Trading Income	1,566	2,180	1,487	875
Interest expenses & similar (-)	479	829	688	676
Other financial charges	5,770	5,127	3,600	5,835
Financial Expenses	6,249	5,956	4,288	6,511
PRE TAX PROFIT	40,132	24,744	-7,054	-45,191
Other Taxation	26	31	-	-
Taxation	0	0	-	-
PROFIT AFTER TAX	40,106	24,713	-7,054	-45,191
Net Profit	40,106	24,713	-	-
Dividends Payable	0	0	0	0
RETAINED PROFITS	40,106	24,713	-	-

Balance Sheet

Number of Weeks	52	52	52	52
Accounts Date	31/12/2006	31/12/2005	31/12/2004	31/12/2003
Currency	GBP	GBP	GBP	GBP
Units	000	000	000	000
Consolidated?	No	No	No	No
TOTAL FIXED ASSETS	72,663	75,494	81,541	83,305
Land & buildings	16,587	17,077	17,383	18,078
Plant, machinery & equipment	34,091	36,434	42,199	45,227
Intermediate Assets	21,985	21,983	21,959	20,000
TOTAL CURRENT ASSETS	505,418	453,272	376,758	274,975
Stocks	59,901	54,474	52,089	32,916
Trade Debtors	144,256	113,915	87,403	87,175
Other Receivables	3,083	1,037	2,493	5,420
Prepaid expenses	21,619	1,173	2,298	664
Group Loans	260,412	242,014	210,578	143,978
Cash	8,469	35,981	16,637	256
Tax Recoverable	7,678	4,678	5,260	4,566
TOTAL ASSETS	578,081	528,766	458,299	358,280
TOTAL CURRENT LIABILITIES	371,201	365,305	324,697	267,737
Trade Creditors	85,395	72,812	52,850	40,247
Bank Overdraft	140	5,818	28,414	12,074
Taxes	345	294	57	188
Due From Group	263,026	269,230	219,589	198,222
Accruals & deferred income	22,295	16,482	20,547	16,239
WORKING CAPITAL	134,217	87,967	52,061	7,238
TOTAL LONG TERM LIABS	25,272	21,959	16,813	16,700
Total Hire Purchase / Leasing	261	-	206	686
Other Long Term Liabilities	25,011	21,959	16,607	16,014
NET ASSETS/(LIABILITIES)	206,880	163,461	133,602	90,543
SHARE CAPITAL + RESERVES	181,608	141,502	116,789	73,843
Issued Share Capital	49,900	49,900	49,900	49,900
Reserves	114,358	114,358	114,358	64,358
Profit and Loss account	17,350	-22,756	-47,469	-40,415
SHAREHOLDERS FUNDS	181,608	141,502	116,789	73,843
CAPITAL EMPLOYED	206,880	163,461	133,602	90,543
TANGIBLE NET WORTH	181,608	141,502	116,789	73,843

Key Credit Ratios

Accounts Date	31/12/2006	31/12/2005	31/12/2004	31/12/2003
Current Ratio	1.36	1.24	1.16	1.03
Profit Before Tax	0.05	0.04	-0.01	-0.10
Creditors Days (D.P.O)	46.92	44.76	40.29	35.15
Quick Ratio	1.20	1.09	1.00	0.90
Return on Assets	7.22	4.88	-1.62	-13.36
T.N.W/Total Assets	0.31	0.27	0.25	0.21
Return on Capital	19.40	15.14	-5.28	-49.91
Working Capital/Sales	0.00	0.00	0.00	0.00
Equity Gearing	0.07	0.06	0.07	0.05
Stock Turnover	0.00	0.00	0.00	0.00
Solvency (%)	218.31	273.68	292.42	385.19

Financial Summary

Turnover	Turnover increased by more than 13% in the period. Turnover totalled GBP  790,624,000 for the period.
Operating Profit	Totalled GBP  44,815,000 In the period prior a profit of GBP   28,520,000 was achieved.
Pre Tax	The subject made a profit of GBP  40,132,000 compared with a profit of GBP  24,744,000 in the previous period.
Working Capital	The company's working capital improved in the period by 53%
Tangible Net Worth	Net worth increased by 40,106,000 during the period and now stands at GBP  181,608,000
Fixed Assets	The subjects fixed assets reduced during the period by GBP  2,833,000 to GBP  50,678,000 and are now 9% of total assets compared with 10% in the previous period
Long Term Liabilities	The company's long term liabilities increased during the period by 15% and are now 14% of net worth compared with 16% in the previous period
Long Term Liabilities	Long term liabilities are now 4% of total assets compared with 4% in the previous period

Previous Searches on this Company

Last 3 Months	Last 6 Months	Last 12 Months
4	7	14

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.21
UK Pound	1	Rs.85.72
Euro	1	Rs.67.92

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

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%)

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