MIRA INFORM REPORT

Report Date :

26.02.2011

IDENTIFICATION DETAILS

Name :	PIAGGIO VEHICLES PRIVATE LIMITED

Formerly Known As :	PIAGGIO GREAVES VEHICLES PRIVATE LIMITED

Registered Office :	E-2, MIDC Industrial Area, Baramati, Pune – 413 133, Maharashtra

Country :	India

Financials (as on) :	31.03.2009

Date of Incorporation :	17.02.1998

Com. Reg. No.:	11-113606

CIN No.: [Company Identification No.]	U34102MH1998PTC113606

Legal Form :	Private Limited Liability Company

Line of Business :	Supplier of Vehicles, Automotive Components, Motor Vehicles, Cars, Automotive Parts.

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums		Fairly Large

Maximum Credit Limit :	USD 5400000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a subsidiary of Piggio, Italy. It is an established company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION denied BY

Name :	Mr. Mangesh
Designation :	Head of Finance
Date :	25.02.2011

LOCATIONS

Registered Office :	E-2, MIDC Industrial Area, Baramati, Pune – 413 133, Maharashtra, India
Tel. No.:	91-2112-243770
Fax No.:	91-2112-243772
E-Mail :	a.medankar@pn.pgvl.com
Website :	www.pgvl.com

Corporate Office :	102, “PHOENIX” Bund Garden Road, Pune – 411 001, Maharashtra, India
Tel. No.:	91-20-24013150
Fax No.:	91-20-24013157/26134972
E-Mail :	sgk@pn.pgvl.com info@piaggio.co.in

Surajpur Office :	A-1, Site “B”, Surajpur Industrial Area, Dist. Gautam Budha Nagar, Greater Noida – 201 306, Uttar Pradesh, India

Regional Offices :	Located at: Noida Mumbai Chennai Kolkata Pune Hyderabad Patna Bhopal Bangalore Cochin

DIRECTORS

As On 29.09.2010

Name :	Mr. Ravi Chopra
Designation :	Chairman cum Managing Director
Address :	19.03.1943
Date of Birth/Age :	Flat No. A-101, Plot No. 46C, Palladium, Mangaldas Road, Pune – 411 001, Maharashtra, India
Date of Appointment :	01.04.1998

Name :	Mr. Franco Fenoglio
Designation :	Director
Address :	Via Bussoleno 44, Rivaltadi, Torino, Italy, Pisa, Italy
Date of Birth/Age :	31.03.1953
Date of Appointment :	24.06.2008
DIN No. :	02263806

Name :	Mr. Daniele Bandiera
Designation :	Director
Address :	Corso Kossuth 18, Torino – 10132
Date of Birth/Age :	02.08.1957
Date of Appointment :	01.12.2006
Date of Cessation :	05.11.2009
DIN No. :	01575425

Name :	Mr. Leonardo Antonio Caputo
Designation :	Director
Address :	Via Pio IV 72, Roma – 00165, Italy
Date of Birth/Age :	27.11.1970
Date of Appointment :	01.12.2006
DIN No. :	02190456

Name :	Mr. Michele Pallottini
Designation :	Director
Address :	Vialugi Rizzo 50, Roma – 00136
Date of Birth/Age :	04.10.1956
Date of Appointment :	01.12.2006
DIN No. :	01575078

Name :	Mr. Ravinder Singh Chopra
Designation :	Managing Director
Date of Appointment :	01.04.1998
DIN No. :	01680496

Name :	Mr. Gianclaudio Neri
Designation :	Director
Address :	Via Giacinta Pezzana 80, Roma, Italy - 00197
Date of Birth/Age :	17.09.1954
Date of Appointment :	10.05.2004

Name :	Maurzio Francesco Roman
Designation :	Additional Director
Address :	Noale Ve 30033
Date of Birth/Age :	28.01.1953
Date of Appointment :	26.12.2010
DIN No. :	03167312

Name :	Michele Roberto Colaninno
Designation :	Additional Director
Address :	Via Bertani, Mantova 3146100
Date of Birth/Age :	23.11.1976
Date of Appointment :	26.12.2010
DIN No. :	03142555

KEY EXECUTIVES

Name :	Mr. Ashok Dnyanoba Medankar
Designation :	Company Secretary
Address :	165/10, Mira Society, Salisbery Park, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	29.11.1960
Date of Appointment :	22.07.2004
Pan No.:	ABAPM3785F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 29.09.2010

Names of Shareholders	No. of Shares
Piggio and CSPA – Italy	33999999
Piaggio Vespa BV – The Netherlands	1
Total	34000000

As On 29.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Supplier of Vehicles, Automotive Components, Motor Vehicles, Cars, Automotive Parts.

Products :

Product Description	ITC Code
Motor Vehicle for transport of persons	8703
Motor Vehicles for the transport of goods	8704

PRODUCTION STATUS

As on 31.03.2009

Particulars	Installed Capacity	Actual Production

Three Wheeled motor Vehicles	156000	149009
Four Wheeled Motor Vehicles	53400	9181

Note:

As per the prevailing industrial licencing policy, no industrial licence is required.
Installed capacity is as certified by the management and has not been verified by the auditors, as this is a technical matter.

GENERAL INFORMATION

No. of Employees :

Information not divulged by management

Bankers :

· State Bank of India, Corporate Accounts Group Branch, Voltas House, 23, J. N. Heredia Marg, Mumbai – 400 001, Maharashtra, India

· State Bank of India, Corporate Accounts, Group- Central, 3^rd Floor, State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai-400021, Maharashtra, India

· Calyon Bank (Formerly Known As : Credit Agricole Indosuez)

Ramon House, 169, Backbay Reclamation, Mumbai – 400 020.

(Now shifted to Hoechst House, 11^th Floor, Nariman Point, Mumbai – 400 021).

Calyon Bank, A-203, 2^nd Floor, ICC Trade Tower, A Wing 403, A/2, Senapati Bapat Road, Pune – 411 016, Maharashtra, India
Credit Agricole and Corporate and Investment Bank – A-203, 2^nd Floor, ICC Trade Tower, Senapati Bapat Road, Pune – 411016, Maharashtra, India

Facilities :

Secured Loans	31.03.2009 (Rs. In millions )	31.03.2008 (Rs. In Millions)
Cash Credit from Banks Secured by hypothecation of inventories, receivables, investments, rights, assets etc of the Company situated at Baramati, or any where else.	12.280	1.980
Total	12.280	1.980

Unsecured Loans	31.03.2009 (Rs. In millions )	31.03.2008 (Rs. In Millions)
Bank Overdraft	203.490	85.140
Total	203.490	85.140

Banking Relations :

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

706, B wing, 7^th Floor, ICC Trade Tower, Senapati Bapat Road, Pune – 411 016, Maharashtra, India

Pan No.:

AACFD4815A

Holding Company :

Piaggio and C-SpA, Italy

CAPITAL STRUCTURE

As on 29.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount

36000000	Equity Shares	Rs.10/- each	Rs.360.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

34000000	Equity Shares (Fully Paid up of which 33999999 (2008 – 33999999) Equity Shares are held by Piaggio and C.SpA, Italy, the holding company and 1 (2008-1) equity shares held by Piaggio Vespa B.V. Netherlands)	Rs.10/- each	Rs.340.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		340.000	340.000	340.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1015.860	528.000	354.630
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1355.860	868.000	694.630
LOAN FUNDS
1] Secured Loans		12.280	1.980	1.020
2] Unsecured Loans		203.490	85.140	0.000
TOTAL BORROWING		215.770	87.120	1.020
DEFERRED TAX LIABILITIES		129.440	145.960	137.260

TOTAL		1701.070	1101.080	832.910

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1876.320	1967.330	1501.990
Capital work-in-progress		1459.830	449.180	557.410

INVESTMENT		1281.270	1340.000	180.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	521.010	402.300	284.510
	Sundry Debtors	293.370	428.690	385.040
	Cash & Bank Balances	93.780	153.390	187.290
	Other Current Assets	80.580	72.890	0.000
	Loans & Advances	933.480	544.810	338.810
Total Current Assets		1922.220	1602.080	1195.650
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2755.290	2538.840	1855.280
	Other Current Liabilities	629.110	499.590	274.360
	Provisions	1454.170	1219.080	472.500
Total Current Liabilities		4838.570	4257.510	2602.140
Net Current Assets		(2916.350)	(2655.430)	(1406.490)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		1701.070	1101.080	832.910

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	18030.900	16475.400	14495.800
		Other Income	309.210	182.680	183.470
		TOTAL	18340.110	16658.080	14679.270

	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	13645.490	12410.030	10730.060

	PROFIT BEFORE TAX		2802.010	1993.360	1961.690

Less	TAX		961.690	706.200	680.110

	PROFIT AFTER TAX		1840.320	1287.160	1281.580

	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	468.550	475.160	149.370
		Reimbursement if Expenses	1.510	0.220	1.230
		Sale of Fixed Assets and other related expenses debited to P and C SpA	0.000	0.000	3.010
	TOTAL EARNINGS		470.060	475.380	153.610

	IMPORTS
		Raw Materials and Components	119.770	92.040	26.780
		Capital Goods	1.290	8.090	4.900
		Others	0.000	0.000	9.890
	TOTAL IMPORTS		121.060	100.130	41.570

	Earnings Per Share (Rs.)		54.13	37.86	37.69

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	10.03	7.73	8.73

Net Profit Margin (PBT/Sales)	(%)	15.54	12.10	13.53

Return on Total Assets (PBT/Total Assets}	(%)	73.77	56.23	72.72

Return on Investment (ROI) (PBT/Networth)		2.07	2.30	2.82

Debt Equity Ratio (Total Liability/Networth)		3.73	4.98	3.75

Current Ratio (Current Asset/Current Liability)		0.40	0.37	0.46

LOCAL AGENCY FURTHER INFORMATION

Background:

Subject (‘the Company’) was incorporated on 17.02.1998, to manufacture diesel run three wheeled motor vehicles as a joint venture between Piaggio and C. SpA, Italy, Simest SpA, Italy and Greaves Limited, India. The Company acquired the on going three wheeler auto unit from Greaves Limited on 31.03.1998 located in Baramati, India where it presently manufactures Ape-501 range of three wheeled and four wheeled motor vehicles. As at August 30, 2001 and May-07, Piaggio and C. SpA Italy, acquired the entire shareholding of Greaves Limited, consequent to which the Board of Directors passed a resolution to change its name to Piaggio Vehicles Private Limited. During the year effective 01.04.2002 the erstwhile Piaggio India Private Limited (PIPL), a wholly owned subsidiary of Piaggio and C. SpA Italy, was amalgamated with Piaggio Vehicles Private Limited (PVPL).

The Details of Sundry Creditors:

Rs. In Millions

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors
Total outstanding dues of micro enterprises and small enterprises	8.480	9.240	0.940
Total outstanding dues of creditors other than micro enterprises and small enterprises	2746.810	2529.600	1854.340
Total	2755.290	2538.840	1855.280

The Year In Retrospect

During the year 2008-09 has seen one of the biggest economic turmoil across the globe. The Indian economy felt the pinch, albeit to a leaser extent in the second half of the year, particularly post Diwali 2008. The company has emerged out of this tough situation with the minimum suffering, thanks to its inherent strength, aided by the liquidity push by the Government to receive the economy. The company’s business suffered primarily in the 3 months period October- December ‘ 08.

Operations:

During the year, the company sold 157435 Vehicles ( 148350 – 3 wheelers and 9085 – 4 wheelers) compared to 158288 vehicles ( 153341-3 wheelers and 4947 – 4 wheelers) last year. In spite of virtually flat sales volume, the company earned a gross revenue of Rs. 18340.000 Millions as compared to Rs. 16658 Millions during the previous year, registering a growth of 10%. This has been possible due to improved product-mix and better price realization in the competitive market and intense cost optimization measures. The company emerged market leadership in the Domestic 3- Wheeler Market, with a Share of 41%.

The Profit before Depreciation for the year improved to Rs. 3020 millions (Rs. 2201 millions previous year) with better sales realization and cost management.

The company introduced a new 4- wheelers model “ Ape Truck Plus” in the month of March 2009. The model has been well received in the market, and showing improved volumes.

Dividend:

In view of the good performance during the year and a strong financial position, the Board of Directors are pleased to recommend a Dividend of Rs. 34 (Rs. 28 Previous year) per Equity Share.

The dividend will absorb an amount of Rs. 1156 Millions and will be subject to dividend distribution tax of Rs. 196.460 Millions leading to a total outflow of Rs. 1352.460 Millions (Rs. 1113.790 Millions last year) An amount of Rs. 184.030 Million (Rs. 129.000 Millions last year) has been transferred to General Reserve in accordance with the provisions of Section 205 (2A) of the companies Act 1956.

Expansion:

The company’s Engine Manufacturing Facility, envisaging an investment of Rs, 3600 Million, is nearing completion with an investment of Rs. 2800 Millions already been put in. The commercial production is expected in the first quarter of 2010. Besides making engines for captive consumption, the facility would also meet the engine requirements of other group companies.

Expansion

The Company commissioned its four-wheeler manufacturing facility at Baramati in February 2007 and commenced commercial production from May 2007. The plant has a planned capacity of 24000 vehicles per annum.

The Company is in the process of setting up an Engine manufacturing facility to serve as a hub to meet not only its requirement but so also of the parent Company. Capital expenditure likely to be incurred is Rs.400 Mio.

Contingent Liabilities: (As On 31.03.2009)

Rs. In Millions

Claims against the Company not acknowledged as debts

Income Tax 7.980

Excise Duty 59.260

Other money for which the company is contingently liable

Bank Guarantees given by bank 0.250

Fixed Assets

· Leasehold Land

· Building

· Plant and Equipments

· Furniture and Fixtures

· Vehicles

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90090738
Corporate identity number of the company	U34102MH1998PTC113606
Name of the company	PIAGGIO VEHICLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	E-2, MIDC Industrial Area, Baramati, Pune – 413 133, Maharashtra, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Calyon Bank, A-203, 2^nd Floor, ICC Trade Tower, A Wing 403, A/2, Senapati Bapat Road, Pune – 411 016, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplementary Hypothecation Agreement of Stock/ Debts / Machinery (Increase in limit/ additional securities)
Date of instrument Creating the charge	25.07.2008
Amount secured by the charge	Rs. 270.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Over draft : Link to PLR Letter of Credit/ Acceptance: Negotiable at the time of Drawndown Guarantees: Negotiable at the time of drawdown Terms of Repayment Overdraft commercial Advance/ Short Term Loans/ Export Finance / FCNR (B) Loan : Max Tenor : 6 months Letter of Credit/ Acceptance : 6 months Guarantees : 1 Year Extent and Operation of the charge Pari passu hypothecation charge over book debts and stocks
Short particulars of the property charged	The borrower hereby agrees and confirms to the bank that the security of First Hypothecation charge created by the Borrower in favour of the bank over the said stocks, book-debts shall constitute security to the bank
Date of latest modification prior to the present modification	01.12.2006
Particulars of the present modification	To enhance the credit facilities granted by the Bank to the Borrower by way of Increase in Funded lines and Non-Funded Lines from Rs. 150.000 Millions To Rs. 270.000 Millions

Corporate identity number of the company	U34102MH1998PTC113606
Name of the company	PIAGGIO VEHICLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	E-2, MIDC Industrial Area, Baramati, Pune – 413 133, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Credit Agricole and Corporate and Investment Bank - A-203, 2nd Floor, ICC Trade Tower, Senapati Bapat Road, Pune – 411016, Maharashtra, India E-mail : jeroo.vazifdar@ca-cib.com
Nature of description of the instrument creating or modifying the charge	1. Supplemental Deed of Hypothecation dated 30.12.2010
Date of instrument Creating the charge	30.12.2010
Amount secured by the charge	Rs. 500.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest - OD - BLR (7%) + 7% p.a STL/BD/EBD/PC - negotiated at time of drawdown sub. to min Base Lending Rate LC/BG/BG-oneoff - as agreed between paties at time of drawdown Penal int. - 11% p.a. over the BLR Terms of Repayment - Over Draft/ Commercial Advance/ Short Term Loan/ Export Finance/ FCNR (B) Loan : Max Tenor : 6 Months Letter of Credit/ Acceptance : 6 months Guarantees : 1 year Extent and Operation of the charge - Pari passu hypothecation charge on Stock and Book Debts.
Short particulars of the property charged	1) Book Debts includes all present and future book debts, outstanding, moneys receivables, claims, bills, contracts, securities, investments, rights and assets. 2) Stocks / Goods includes all tangible movable property such as products, stocks of goods such as raw materials, goods in process, finished goods and other items of stock in trade.
Date of last modification prior to the present modification	25.07.2008
Particulars of the present modification	BY THIS PRESENT MODIFICATION the credit facility granted earlier is hereby extended from Rs. 270.000 millions to Rs. 500.000 millions by creating pari passu hypothecation charge over the Stock and Book Debts for Rs. 500.000 millions.

Name of the company	PIAGGIO VEHICLES PRIVATE LIMITED
Presented By	Calyon Bank (formerly : Credit Agricole Indosuez) and Piaggio Vehicles Private Limited
1) Date and description of instrument creating the change	Dated : 7^th October, 1998 Agreement of Hypothecation of Plant and Machinery / Goods / Book Debts.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.52.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	· All the Borrower’s present and future book debts, outstanding, money receivable, claims, bills, contracts, securities, investments, rights and assets (except property effectively otherwise hypothecated or charged to the Bank) by way of a first pari passu charge; and · All the goods and all other movable property such as products, stock in trade and goods, whether finished or raw or in the process of manufacture, and all articles manufactured there from belonging to the Borrowers which now are or hereafter from time to time during this security shall be brought in, stored or be, in or about the premises warehouse or godowns of the said Borrower/s at Baramati or anywhere else, including any such goods in course of transit or delivery.
4) Gist of the terms and conditions and extent and operation of the charge.	· Compound interest @ PLT + Tax or at such other rate as may from time to time be fixed by the Bank: · Margin : 20% · This agreement and the security herein referred to shall operate as a continuing security for all moneys, Indebtedness and liabilities aforesaid notwithstanding the existence of a credit balance on the said Facility account or any other account at any time or any other partial payment or fluctuations of accounts.
5) Name and Address and description of the person entitled to the charge.	Calyon Bank (Formerly Known As : Credit Agricole Indosuez) Ramon House, 169, Backbay Reclamation, Mumbai – 400 020. (Now shifted to Hoechst House, 11^th Floor, Nariman Point, Mumbai – 400 021).
6) Date and brief description of instrument modifying the charge	Dated : 1^st July, 2004. Letter dated 01.07.2004 from Calyon Bank.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	· Past Modification : The original charge created on 07.10.1998 for Rs.52.500 millions modified and increased to Rs.70.000 millions on 25.11.2002. (Last modification registered on 10.01.2003 under Doc. No. 73). · Present Modification : In terms of RBI’s notification dated 30.04.2004, Credit Agricole Indosuez (CAI) has changed its name to Calyon Bank effective from 1^st May, 2004 and this new name is used in India only. This is a change of name only and will have no effect on any existing contracts or agreements between the Bank and/or the rights and liabilities of parties therto and/or the securities created thereunder, which continue to be in full force and effect. All existing documentation executed by Company, including intimation of authorized signatories, will continue to be valid. Save and expect the above, there is, therefore, no change in the amount of charge.

AS PER WEBSITE DETAILS

PROFILE:

Subject, the pioneer of 3-wheeler goods transportation in India, is today the no. 1 in its class. By setting global standards in vehicle performance and customer service, it has revolutionized the 3 wheeler cargo segment in India. Today the company offers a range of passenger and cargo vehicles for many customized applications.

Subject is a 100% subsidiary of Piaggio and C. s.p.a. of Italy, the inventor of 3-wheelers. PVPL commenced its Indian operations in the year 1999 with the launch of the brand apé which was an instant success and has grown from strength to strength over the years. Its superior product features and benefits coupled with world class customer service has earned apé a loyal and growing customer base. apé is firmly established in the hearts and minds of customers as a dependable brand that helps them maximize their business earnings. apé vehicles are engineered for higher fuel efficiency, rugged performance and outstanding load carrying capability. Living up to Piaggio’s core philosophy, all PVPL vehicles conform to the most stringent emission norms.

With an aggregate market share of 41% in the 3w industry and 56% in the 3w cargo segment in 2009, PVPL has firmly established its position as an undisputed leader in the 3w domestic market. This impressive growth trajectory would not be possible without PVPL’s advanced R and D center, modern manufacturing unit and stellar network. In the past 10 years, over 1 million Indian transporters have trusted apé for total dependability, reliability and profitability. Today, over 300,000 tonnes of cargo is transported daily across the country on the apé.

Piaggio India has successfully introduced state-of-the-art products with world class technology in India. Its reputation is built on its efficient network of over 804 touch points across India, providing world class Customer Care.

Piaggio India has also entered the sub-1-tonne 4w cargo segment recently with the launch of apétruk and apétruk plus. These products are gaining good acceptability in the market due to their great look, comfort, higher mileage, loadability and lower maintenance cost.

Honoured as “The Commercial Vehicle Manufacturer of the Year 2008” by NDTV Profit and Car and Bike India, and awarded the “LCV Truck of the Year” 2010 (payload 1 tonne and above category) by Apollo – CV for apé truk plus, PVPL continues its inspired journey to engineer and produce world class vehicles that ensure a better livelihood and quality of life for millions across India.

News:

Piaggio Vehicles to launch `quadri-cycle' next year

PIAGGIO Vehicles Private Limited plans to launch its "quadri-cycle" for the cargo market in the second half of 2005. Currently, extensive tests of the vehicle are underway.

It has got the design for the quadri-cycle - a four-wheeler goods and passenger carrier - from its Italian parent and has got ready a prototype that has been modified for Indian conditions, according to Mr Ravi Chopra, Managing Director, Piaggio Vehicles Private Ltd. In an informal chat with Business Line here on Monday, Mr Chopra hoped that issues over classifying a quadri-cycle would get sorted out soon.

The automobile industry in the country is divided on the safety norms that will have to be incorporated, in case the quadri-cycle is used for moving people. Some in the industry want the gross vehicle weight to be higher than 600 kg, while some others feel that 600 kg - the internationally followed limit - is adequate.

Mr Chopra was confident that these and other issues that are being currently debated by the industry would be sorted out shortly. Piaggio would launch the cargo carrier quadri-cycle next year, once the tests are completed.

This 1.5-tonne vehicle with a payload of 800 kg to one tonne, would be manufactured at Piaggio Vehicles' plant in Baramati, Maharashtra.

Mr Chopra was here to launch the 1.3-tonne three-wheeler cargo carrier from Piaggio. The company has a one-tonne three-wheeler in the market and the 1.3-tonne vehicle will help it offer a wider choice to customers in what Mr Chopra believes is a growing market. All the company's three-wheeler carriers are sold under `Ape' brand name.

In his reasoning, for every multi-axle vehicle that is sold for inter-city cargo movement, at least eight to 10 smaller cargo carriers of the capacity that Piaggio produces would be required, he told a press conference to launch the 1.3-tonne cargo carrier.

He said that Piaggio would have a capacity of one lakh units in place before the end of 2004 and 1.36 lakh units before the end of next year.

From a "few thousand vehicles" exported last year, Piaggio Vehicles hopes to increase exports to 20 per cent of total sales in the next couple of years. Its turnover is expected to grow from Rs 4500 millions in 2003 to Rs 6000 millions this year and the target is to increase it to Rs 10000 millions by the end of 2005. Its profit before tax was "12 per cent to 13 per cent."

Mr Chopra said the Italian parent is also keen to make its Indian subsidiary a worldwide manufacturing hub for three-wheeler products. Piaggio Vehicles had seeded the market in 18 countries and hoped to begin exports to these countries shortly.

The markets include Africa, Latin America, South East Asia and South Asia.

The Italian company will also source components like plastic parts and sheet metal components for its global products.

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.45.37
UK Pound	1	Rs.73.24
Euro	1	Rs.62.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

521.010

402.300

284.510

293.370

428.690

385.040

93.780

153.390

187.290

80.580

72.890

0.000

933.480

544.810

338.810

1922.220

1602.080

1195.650

1855.280

629.110

499.590

274.360

1454.170

1219.080

472.500

4838.570

4257.510

2602.140

(2916.350)

(2655.430)

(1406.490)

10.03

7.73

15.54

12.10

73.77

56.23

2.07

2.30

3.73

4.98

0.40

0.37

Unit