MIRA INFORM REPORT

Report Date :

04.05.2011

IDENTIFICATION DETAILS

Name :	EROS MOTORS PRIVATE LIMITED

Registered Office :	Plot No. 3, Shobha Tower, Gayatri Sadan, Ghat Road, Ganji Peth, Nagpur-440002, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	13.01.1999

Com. Reg. No.:	11-117840

CIN No.: [Company Identification No.]	U50100MH1999PTC117840

TAN No.: [Tax Deduction & Collection Account No.]	NGPR00146G

Legal Form :	Private Limited Liability Company

Line of Business :	Dealer of Three Wheeler, Car, Bus, Delivery Van and Car Accessories.

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 120000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Latest profit and loss of the company is not available.

NOTES :

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

INFORMATION PARTED BY

Name :	Mr. Pramod Kale
Designation :	Accounts
Contact No.:	91-9325434169
Date :	03.05.2011

LOCATIONS

Registered Office/ Showroom :	Plot No. 3, Shobha Tower, Gayatri Sadan, Ghat Road, Ganji Peth, Nagpur-440002, Maharashtra, India
Tel. No.:	91-712-2773943/2728182
Mobile No.:	91-9325434169 (Mr. Pramod Kale)
Fax No.:	91-712-2774740
E-Mail :	emaccount@erosgroup.co.in nhit@erosgroup.co.in eros_ngp@sancharnet.in empl_ngp@sancharnet.in
Website :	www.erosgroup.co.in
Area :	15000 Sq. ft.
Location :	Owned

Branch Office :	Deotal Nagpur Road, Jabalpur
Tel No.:	91-761-2372769/770
Area :	25000 Sq. ft.
Location :	Rented

DIRECTORS

As on 29.09.2010

Name :	Mr. Akhil Kumar Pande
Designation :	Director
Address :	Plot No. 7, Bhagwaghar Layout, Dharampeth, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	10.03.1961
Date of Appointment :	01.09.2006
Din No.:	01775808
Directorship in Other Company :	Eros Metal Works Private Limited CIN No. U99999MH1976PTC018808 Eros General Agencies Private Limited CIN No. U51393MH2004PTC143835 MBP Finance And Investments Private Limited CIN No. U65920MH1999PTC118327 Orange City Metal Private Limited CIN No. U29290MH2004PTC147683 Eros Equipments Private Limited CIN No. U29230MH2004PTC147062
Name of Partnership Firm :	Orient Metal Industries Address: G-19/1, MIDC Industrial Area, Hingana Road,Nagpur-440028, Maharashtra, India
Sole Proprietory Firm :	M B Pande And Sons Address: G-19/1, MIDC Industrial Area, Hingana Road,Nagpur-440028, Maharashtra, India

Name :	Mrs. Suhas Anil Kumar Pande
Designation :	Director
Address :	Plot No. 7, Bhagwaghar Layout, Behind Alankar Cinema, Dharampeth, NAgpur-440010, Maharashtra, India
Date of Birth/Age :	21.07.1958
Date of Appointment :	01.09.2006
Din No.:	01430012
Directorship in Other Company :	Eros Auto Private Limited CIN No.: U02914MH2006PTC161163
Name Of Partnership Firm :	Eros Industries Address:G-19/1, MIDC Industrial Area, Hingana Road,Nagpur-440028, Maharashtra, India

Name :	Mrs. Sachi Amitkumar Pande
Designation :	Director
Address :	Plot No. 7, Bhagwaghar Layout, Dharampeth, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	29.01.1970
Date of Appointment :	01.09.2006
Din No.:	01781104
Name Of Partnership Firm :	Eros Marketing Services Address: 2nd Floor Eros Mansion, Rani Jhansi Square, Sitabuldi, Nagpur- 40012, Maharashtra, India

Name :	Mr. Anuj Kumar Pande
Designation :	Director
Address :	Plot No. 7, Bhagwaghar Layout, Dharampeth, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	21.07.1958
Date of Appointment :	13.01.1999
Din No.:	01770329

Name :	Mr. Atul Kumar Pande
Designation :	Director
Address :	Plot No. 7, Bhagwaghar Layout, Dharampeth, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	11.08.1952
Date of Appointment :	06.04.2004
Din No.:	01774377

KEY EXECUTIVES

Name :	Mr. Pramod Kale
Designation :	Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders		No. of Shares
Gayatridevi Narayan Prasad Pande		304000
Amit Kumar Narayan Prasad Pande		76000
Atul Kumar Pande		76000
Anuj Kumar Pande		76000
Anil Kumar Pande		76000
Avinash Kumar Narayan Prasad Pande		76000
Akhil Kumar Pande		76000

Total		760000

As on 29.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
Total		100.00

BUSINESS DETAILS

Line of Business :	Dealer of Three Wheeler, Car, Bus, Delivery Van and Car Accessories.

Agencies Held :	Hyundai Piaggio

Terms :
Selling :	Cash / Credit (30 days / 60 days / 90 days)

Purchasing :	Cash / Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :

End Users, OEM’s and Others

No. of Employees :

150 (Approximately)

Bankers :

State Bank of India, SME City Credit Centre (SMECC), 128, Shradhanand Peth, Nagpur-400010, Maharashtra, India
ICICI Bank Limited
State Bank of India, Kingsway, Nagpur-440010, Maharashtra, India
Axis Bank Limited, Rabindranath Tagore Road, M.G. House Civil Lines, Nagpur-440001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Cash Credit
From State Bank of India Secured against hypothecation of stocks, book debts/ receivables and collaterally secured by equitable mortgage over third party property and guaranteed by two directors	56.345	61.090
Term Loan
From State Bank of India against charge on workshop Equipments, machinery, Furniture and Fixtures and other Immovable assets.	7.816	11.419
Vehicle Finance (Secured against Vehicles)
From ICICI Bank Limited	0.825	1.739
From HDFC Bank Limited	0.000	0.544
From Sundaram Finance Limited	0.833	0.000
From TATA Capital Limited	0.224	0.361
Total	66.043	75.153

Unsecured Loan
Anuj Kumar Pande	0.268	0.000
N.P. Pande HUF	0.009	0.000
M.B. Pande HUF	0.061	0.000
M. B. Pande and Sons	0.094	0.000
Central India Fabricators	0.100	0.000
Eros Industries	0.576	0.000
Eros Infrastructure Private Limited	5.400	0.000
Eros Marketing Services	0.080	0.000
Eros Metal Works Private Limited	0.524	0.000
From Directors	0.000	2.556
From Shareholders	0.000	19.236
Total	7.112	21.792


Banking Relations :	--

Auditors :
Name :	Mr. B.C. Bhartia Chartered Accountant
Address :	Sadoday Complex, Central Avenue Road, Nagpur-440018, Maharashtra, India

Associates/Subsidiaries :	Eros Industries Address :G-19/1, M.I.D.C. Area, Nagpur 440 028, Maharashtra, India Tel : 91- 7104- 237015 Fax : 91-7104- 237361 Email : erosfur_ngp@sancharnet.in Contact Person: Mr. Anil K. Pande Eros General Agencies Private Limited Rani Jhansi Square, Nagpur 440 012, Maharashtra, India Phone: 91-712- 556691 Fax : 91- 712- 542267 Email : erosind_ngp@sancharnet.in Line of Business : Trading of Steel and Wooden Furniture Eros Metal Works Private Limited G-5, M.I.D.C. Area, Nagpur 440 028, Maharashtra, India Phone: 91- 7104- 37775 Fax : 91- 7104- 32748 Email : emwpl_ngp@sancharnet.in Line of Business : Manufacturing of a Fabricator Eros Infrastructures Private Limited G-97 M.I.D.C. Industrial Area Buttibori -441103 Phone: 91- 7104- 645005 Email: cipl@erosgroup.co.in Contact Person: Mr. Anil K. Pande.

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
760000	Equity Shares	Rs.10/- each	Rs.7.600 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
760000	Equity Shares	Rs.10/- each	Rs.7.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		7.600	7.600	2.600
2] Share Application Money		10.000	0.000	5.000
3] Reserves & Surplus		13.377	9.974	8.282
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.977	17.574	15.882
LOAN FUNDS
1] Secured Loans		66.043	75.153	50.007
2] Unsecured Loans		7.112	21.792	11.570
TOTAL BORROWING		73.155	96.945	61.577
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		104.132	114.519	77.459

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		19.306	20.584	20.371
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	79.177	118.513	71.859
	Sundry Debtors	31.891	23.275	34.720
	Cash & Bank Balances	6.442	3.866	5.750
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.776	3.075	3.688
Total Current Assets		125.286	148.729	116.017
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.534	47.393	56.074
	Other Current Liabilities	7.401	6.513	2.390
	Provisions	1.530	0.893	0.470
Total Current Liabilities		40.465	54.799	58.934
Net Current Assets		84.821	93.930	57.083

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		104.132	114.519	77.459

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2008
	SALES
		Income	252.938
		Other Income	4.268
		TOTAL (A)	257.206

Less	EXPENSES
		Cost of goods sold	227.457
		Direct expenses	8.926
		Employees cost	3.261
		Administrative / operating expenses	8.419
		Selling and distribution expenses	0.821
		TOTAL (B)	248.884

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.322

Less	FINANCIAL EXPENSES (D)		5.225

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.097

Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.770

	PROFIT BEFORE TAX (E-F) (G)		1.327

Less	TAX (H)		0.506

	PROFIT AFTER TAX (G-H) (I)		0.821

	Earnings Per Share (Rs.)		NA

Particulars

31.03.2011

31.03.2010

31.03.2009

Sales Turnover (Approximately)

900.000

500.000

300.000

Expected Sales (2011-12): Rs.1000.000 millions

The above information has been parted by Mr. Pramod Kale

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	NA	0.32

Net Profit Margin (PBT/Sales)	(%)	NA	NA	0.52

Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	0.97

Return on Investment (ROI) (PBT/Networth)		NA	NA	0.08

Debt Equity Ratio (Total Liability/Networth)		3.67	8.63	7.59

Current Ratio (Current Asset/Current Liability)		3.10	2.71	1.97

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

31.534

47.393

56.074

Partial Details of Sundry Creditors:

Particular	As on 31.03.2010 (Rs. in Millions)
Trade Creditors:
ALF Autocolour, Nagpur	0.180
Anil Enterprise	0.148
Anurag Auto, New Delhi	0.150
Jopasu Systems Private Limited, Nagpur	0.403
Shell Advertising Inc.	1.312
Mahek Enterprises, Secunderabad	0.125
Total	2.318

Creditors Debit Balances:
Mahindra and Mahindra (Spare)	0.600
Mahindra and Mahindra Limited	0.251
Mobis India Private Limited	1.000
Hyundai Motors India Limited, Vehicle	1.706
Hyundai Motors India Limited, Claims	4.874
Hyundai Motors India Limited, Deposit	1.000
Piaggio Vehicles Private Limited, (Vehicles)	1.292
Total	10.723

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U50100MH1999PTC117840
Name of the company	EROS MOTORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 3, Shobha Tower, Gayatri Sadan, Ghat Road, Ganji Peth, Nagpur-440018, Maharashtra, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Axis Bank Limited, Rabindranath Tagore Road, M.G. House Civil Lines, Nagpur-440001, Maharashtra, India
Email	sanjivkumar@axisbank.com
Nature of description of the instrument creating or modifying the charge	1. Deed of hypothecation of machinery and other movable fixed assets dated 25.10.2010 2. Sanction letter
Date of instrument Creating the charge	25.10.2010
Amount secured by the charge	Rs.22.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 4.00% Terms of Repayment Term loan will be repaid in 54 monthly installments ater moratorium period of 12 months from date of first disbursement. Margin 25% Upfront Extent and Operation of the charge First and exclusive charge over the properties hypothecated vide deed of hypothecation of machinery and other movable fixed assets dated 25.10.2010
Short particulars of the property charged	First and exclusive charge over the properties hypothecated vide deed of hypothecation of machinery and other movable fixed assets dated 25.10.2010

TRADE REFERENCES:

Kothari Cars Private Limited, Pune
Ketan Motors, Amravati

FIXED ASSETS:

Office Equipments
Motor Vehicle
Commercial Vehicles
Plant and Machinery and Work Shop Tools
Civil and Office Renovation
Furniture and Fixture
Computer Systems

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.44.34
UK Pound	1	Rs.70.70
Euro	1	Rs.65.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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

79.177

31.891

6.442

0.000

7.776

125.286

31.534

7.401

1.530

40.465

84.821

NA

NA

NA

NA

3.67

3.10

Unit