MIRA INFORM REPORT

Report Date :

30.05.2011

IDENTIFICATION DETAILS

Name :	GABRIEL INDIA LIMITED
Registered Office :	29^th Milestone, Pune-Nashik Highway, Village Kuruli, Taluka Khed, Pune – 410 501, Maharashtra
Country :	India
Financial as on :	31.03.2010
Date of Incorporation :	24.02.1961
Com. Reg. No.:	11-015735
Capital Investment / Paid-up Capital :	Rs.71.850 Millions
CIN No.: [Company Identification No.]	L34101PN1961PLC015735
TAN No.: [Tax Deduction & Collection Account No.]	PNEG04598G
Legal Form :	Public Limited Liability Company. Company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Shock Absorbers, Struts, Front Forks and Engine Bearings. It is also the principal supplier to both the OE and Aftermarket segments with a sizeable presence in the overseas markets.
No. of Employees :	1243 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 5970000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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	A1	A1

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

LOCATIONS

Registered Office / Factory 1 :	29^th Milestone, Pune-Nashik Highway, Village Kuruli, Taluka Khed, Pune – 410 501, Maharashtra, India
Tel. No.:	91-20-24101931 – 34 / 261091/098/012
Fax No.:	91-20-24101935 / 8018 / 561935 91-2135-261200
E-Mail :	secretarial@gabriel.co.in anshul.bhargava@gabriel.co.in
Website :	www.anandgroupindia.com www.gabrielindia.com
Corporate Office 1 :	1 Sri Aurobindo Marg, New Delhi – 110 016
Corporate Office 2 :	Magnet House, N. M. Marg, Ballard Estate, Mumbai – 400 038, Maharashtra
Sales Office :	10, Prasad Chambers, Opera House, Mumbai - 400 004, Maharashtra
Factory 2 :	B-2 MIDC, Ambad Industrail Area, Nashik - 422 010, Maharashtra
Factory 3 :	5, Industrial Area No. 3, Agra-Mumbai Road, Dewas - 455 001, Madhya Pradesh
Factory 4 :	Plot No. 5, Sector II, Parwanoo - 173 220, Himachal Pradesh
Factory 5 :	52-55, S.No. 102/3 -106 (PT), Sipcot, Phase – II, Moranapalli Village, Hosur - 635 109, Tamilnadu, India
Factory 6 :	38 KM Stone Behrampur Road, Khandsa, Gurgaon - 122 001, Haryana, India

DIRECTORS

Name :	Mr. Deep C Anand
Designation :	Chairman Emeritus
Name :	Mr. Prakash Kulkarni
Designation :	Executive Chairman
Name :	Mr. Arvind Walia
Designation :	Managing Director
Name :	Mr. Russi Jal Taraporevala
Designation :	Director
Name :	Mr. Ravi K Sinha
Designation :	Director
Name :	Ms. Padmini Khare Kaicker
Designation :	Director
Name :	Mr. Rajeev Vasudeva
Designation :	Director
Name :	Mr. Deepak Chopra
Designation :	Director
Name :	Mr. Rakesh Sachdev
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Alok Agarwal
Designation :	VP and Head of Finance
Name :	Mr. Anshul Bhargava
Designation :	Company Secretary
Name :	Mr. Amitabh Srivastava
Designation :	Head – After Market and AM Export

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Category of Shareholder	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group^2
Indian
Individuals/ Hindu Undivided Family	3284690	4.57
Bodies Corporate	35952734	50.06
Public shareholding
Institutions
Mutual Funds/ UTI	17460	0.02
Financial Institutions ^/Banks	61800	0.09
Central Government/ State Government(s)	250	0.00
Insurance Companies	270000	0.38
Foreign Institutional Investors	500	0.00
Non-institutions
Bodies Corporate	5410127	7.53
Individuals
Individuals -i. Individual shareholders holding nominal share capital up to Rs 0.100 Million	16213948	22.58
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6355404	8.85
Any Other (specify)	4255057	5.92
Trusts	3750	0.01
Foreign Collaborations	3968680	5.53
Non Resident Indians	256091	0.36
Clearing Members	26536	0.04
Sub Total	32234536	44.88
Total Public Share Holding	32584546	45.37
Total A + B	71821970	100.00
Shares held by Custodians and against which Depository Receipts have been issued	--	--
GRAND TOTAL	71821970	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Shock Absorbers, Struts, Front Forks and Engine Bearings. It is also the principal supplier to both the OE and Aftermarket segments with a sizeable presence in the overseas markets

Products :

Item Code No. (ITC Code)	870880-00
Product Description	Shock Absorbers Mcpherson Struts
Item Code No. (ITC Code)	8714991-00
Product Description	Front Forks

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Shock Absorbers and Struts	Nos.	20130325	12782311
Front Forks	Nos.	2727300	1788784
Castings	Nos.	640000	485764**

** Actual production includes Castings for two wheelers captiveiy consumed 464,838 Nos

GENERAL INFORMATION

Customers :	Tata Motors Hyundai Mahindra and Mahindra Toyota Maruti-Suzuki General Motors Force Motors Fiat Mahindra Renault Mitsubishi Ford Bajaj Auto Kinetic Motors Eicher Motors Swaraj Mazda
No. of Employees :	1243 [Approximately]
Bankers :	Ø ABN Amro Bank Ø Axis Bank Ø Bank of India Ø ICICI Bank Ø IndusInd Bank Ø ING Vysya Bank Ø Standard Chartered Bank Ø State Bank of India Ø Punjab National Bank Ø Citi Bank

Facilities :

SECURED LOAN	As on 31.03.2010 [Rupees in Millions]
From Banks
- Rupee Term Loans	404.970
Working Capital Facilities From Banks (Including Buyer’s Credit Rs.310.960 millions)	640.750
Total	1045.720
UNSECURED LOAN	As on 31.03.2010 [Rupees in Millions]
Fixed Deposits	357.140
Sales Tax Deferral Loans	80.790
Other Loans and Advances	4.45
Total	442.380

Banking Relations :

--

Auditors :

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

Building No. 8, Tower B, DLF Cyber City, Gurgaon - 122 002, Haryana, India

Solicitors :

VD Wadia and U Deshi

Elphinstone House, Ist Floor, 17, Mezbon Road, Opposite Sterling Theatre, Mumbai, Maharashtra, India

Memberships :

Confederation of Indian Industry

Parent Company :

Ø Federal Mogul Corporation, United States of America

Ø Gabriel Ride Control Products, United States of America

Associates/Subsidiaries :

Stallion Shox Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
140,000,000	Equity Shares	Re.1/- each	Rs.140.000 Millions
100,000	Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
71,821,970	Equity Shares	Re. 1/- each	Rs.71.820 Millions
	Add: Share Forfeiture		Rs.0.030 Million
	Total		Rs.71.850 Millions

Notes:

In earlier years:

(a) 1,235,000 Equity Shares of Rs.10 each allotted as fully paid up by way of Bonus Shares by capitalisation of Reserves

(b) 1,733,996 Equity Shares of Rs.10 each at a premium of Rs. 20 each allotted as fully paid up on conversion of

Partly Convertible Debentures on November 30, 1991

(c) 2,675,198 Equity Shares of Rs.10 each at a premium of Rs. 115 each allotted as fully paid up on conversion of

Partly convertible Debentures on November 01, 1996

(d) The Company had sub divided its every equity share of Rs 10 each (fully paid up) into 10 (Ten) equity shares of Re 1 (One) each (fully paid up) based on the approval of the shareholders in the Extraordinary General Meeting held on December 16, 2005.

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		71.850	71.850	71.850
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1420.870	1251.900	1254.620
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1492.720	1323.750	1326.470
LOAN FUNDS
1] Secured Loans		1045.720	1275.230	1004.570
2] Unsecured Loans		442.380	293.940	456.920
TOTAL BORROWING		1488.100	1569.170	1461.490
DEFERRED TAX LIABILITIES		141.000	105.800	104.380
TOTAL		3121.820	2998.720	2892.340
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1843.870	1755.600	1184.900
Capital work-in-progress		121.400	155.730	407.810
INVESTMENT		133.320	133.310	143.060
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	799.580	672.160	446.340
	Sundry Debtors	773.080	822.730	724.050
	Cash & Bank Balances	134.090	90.830	122.050
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	633.340	604.990	790.670
Total Current Assets		2340.090	2190.710	2083.110
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1052.410	1047.520
	Other Current Liabilities	142.070	67.990	807.390
	Provisions	122.38	121.120	119.150
Total Current Liabilities		1316.860	1236.630	926.540
Net Current Assets		1023.230	954.080	1156.570
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3121.820	2998.720	2892.340

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6973.990	5202.460	4674.920
		Other Income	128.880	175.690	141.120
		TOTAL (A)	7102.870	5378.150	4816.040
Less	EXPENSES
		Excise Duty	4.050	4.310	7.150
		Cost of Materials	5172.910	3924.410	3477.080
		Personnel Expenses	469.150	415.360	389.360
		Manufacturing, Administration, Selling and Distribution and Other Expenses	754.760	645.710	604.990
		TOTAL (B)	6400.870	4989.790	4478.580
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		702.000	388.360	337.460
Less	FINANCIAL EXPENSES (D)		147.950	163.420	75.380
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		554.050	224.940	262.080
Less/ Add	DEPRECIATION/ AMORTISATION (F)		201.830	152.610	138.460
	PROFIT BEFORE TAX (E-F) (G)		352.220	72.330	123.620
Less	TAX (I)		111.820	16.230	47.130
	PROFIT AFTER TAX (G-I) (J)		240.400	56.100	76.490
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		747.120	755.450	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	24.040	5.610	NA
		Dividend – Interim	21.550	-	NA
		Dividend – proposed Final	39.500	50.280	NA
		Corporate Dividend tax	10.380	8.540	NA
	BALANCE CARRIED TO THE B/S		892.050	747.120	NA
	IMPORTS
		Raw Materials	662.250	617.470	314.260
		Stores & Spares	91.160	16.140	13.590
		Capital Goods	26.270	94.220	1.410
		Others	202.310	115.620	40.940
	TOTAL IMPORTS		981.990	843.450	370.200
	Earnings Per Share (Rs.)		3.35	0.78	1.06

QUARTERLY / SUMMARISED RESULTS

(Rs. In Millions)

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	2126.800	2364.200	2467.900
Total Expenditure	1929.500	2159.300	2312.500
PBIDT (Excl OI)	197.300	204.900	155.400
Other Income	0.000	0.900	2.900
Operating Profit	197.300	205.800	158.300
Interest	27.100	32.100	32.900
Exceptional Items	0.000	0.000	0.000
PBDT	170.200	173.700	125.400
Depreciation	49.400	54.200	56.700
Profit Before Tax	120.800	119.500	68.700
Tax	35.00	34.800	14.400
Reported PAT	85.800	84.700	54.300
Extraordinary Items	0.000	(17.200)	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	85.800	67.500	54.300

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.38	1.03	1.59
Net Profit Margin (PBT/Sales)	(%)	5.05	1.38	2.64
Return on Total Assets (PBT/Total Assets}	(%)	8.41	1.83	3.78
Return on Investment (ROI) (PBT/Networth)		0.23	0.05	0.09
Debt Equity Ratio (Total Liability/Networth)		1.87	2.12	1.80
Current Ratio (Current Asset/Current Liability)		1.77	1.77	2.25

LOCAL AGENCY FURTHER INFORMATION

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

Particulars	Quarter Ended 31.12.2010	Nine months Ended 31.12.2010
Income
a) Net Sales / Income from Operations	2443.000	6850.800
b) Other Operating Income	24.900	108.100
Total Operating Income	2467.900	6958.900
Expenditure
(a) (Increase)/decrease in Stock in Trade	(50.100)	(80.300)
(b) Consumption of Raw Materials	1902.300	5260.600
(c) Purchase of traded goods	3.100	14.000
(d) Employees Cost	175.900	476.000
(e) Depreciation	56.700	160.300
(f) Other Expenditure	281.300	731.100
Total Expenditure	2359.200	6561.700
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	98.700	397.200
Other Income	2.900	3.800
Profit/(Loss) before Interest and Exceptional items	101.300	401.000
Interest	32.900	92.100
Profit / (Loss) after interest before Exceptional items	68.700	308.900
Exceptional Items	0.000	0.000
Profit / (Loss) From Ordinary activities before Tax	68.700	308.900
Provision for Taxation	14.400	84.200
Net Profit/(Loss) From Ordinary activities after Tax	54.300	224.700
Extraordinary Items	0.000	17.200
Net Profit/(Loss) for the period	54.300	207.500
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	71.800	71.800
Reserves (Excluding Revaluation Reserves)	0.000	0.000
Public Share Holding
Before Extraordinary Items
-Basic	0.76	2.89
-Diluted	0.76	2.89
After Extraordinary Items
-Basic	0.76	2.89
-Diluted	0.76	2.89
Average of Public Share Holding
- Number of Shares	32584546	32584546
- Percentage of shareholding	45.37	45.37
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	--	--
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	--	--
- Percentage of shares(as a % of the total share capital of the company)	--	--
b) Non-encumbered
- Number of Shares	39237424	39237424
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00	100.00
- Percentage of Share (as a % of the total share capital of the company)	54.63	54.63

Notes :

1 The above results have been reviewed by me Audit Committee and approved by Board ol directors in their meeting held on January 28. 2011. These have been subjected to Limited Riview by statutory auditors of the Company.

2 The Company is in the process of completing the purchase / registration formalities for the land situated at Khandsa. on which a manufacturing facility was set up in 2007 Due to delay in receiving government clearances, the Company agreed with the seller to pay during the Quarter a one time charge for post usage which has been accounted for in the current quarter

3 Prior period item represents adjustment on account of discrepancies in material consumption detected during the year.

4 interest cost for the Nine months ended December 31.2010 is net of interest Income of Rs. 20.07 million (Rs. 14.28 for the corresponding period of 2009-2010

5 The Company operates only in one business segment viz Auto components and parts.

6 Earning Per Share for the year ended March 31^st 2010 is for the whole year, whereas for the quarter / nine months ending periods, it is only for that period.

7 There "were no investor complaint pending at the beginning of the quarter and 41 complaint were received during the quarter, all these complaints were disposed off during the quarter and there were no complaints pending at the quarter end.

8 Previous year period figures have been regrouped / recast considered necessary to conform to the current period classification.

HISTORY:

Established in 1961 with the setting up of a Shock Absorber plant at Mulund, Subject is the flagship company of the Anand group. It was promoted in technical and financial collaboration with Gabriel Company, US (20.81% stake). The company is a leading manufacturer of Ride control products i.e. Shock Absorbers, McPherson Struts and Front Forks. The Ride control products are produced in its plants located at Mulund, Nasik and Pune in Maharashtra; Dewas, Madhya Pradesh; Hosur, Tamilnadu and Gurgaon, Haryana. Another division of the company the Engine Bearing divison, which was set up in 1978 at Parwanoo, Himachal Pradesh in collobaration with Federal-Mogul Corp, USA is an fully integrated facility to produce complete range of Bimetal Bearings, Bushes, and Thrust Washers. The company receives technological support from its collaborators -- Gabriel Ride Control Products, USA; SOQI/ Yamaha Motor, Japan; Kayaba, Japan; APA-Kayaba, Spain and Arvin Suspension System Italia of Italy for it's Ride Control Products and from Federal Mogul Corporation, USA for its Engine Bearings products. The company came out with two issue of partly convertible debentures one in May 1991 and the next in 1996 to part-finance its expansion, modernisation and diversification. All the plants of the company, except the one at Mulund, have received ISO certification. Gabriel exports shock absorbers to several developed markets in the US, Europe, Australia and the Asia-Pacific region. During 2002-03 the company has commenced manufacturing and supply of products to OEMs in the state of Uttar Pradesh from the new facility at Noida, acquired as a result of merger of Stallion Shox Limited with the company. The amalgamation with the Stallion Shox Limited was completed and the ratio of shares were exchanged were 1:100.

PERFORMANCE

The total sales at Rs 6974.000 Million, (Previous Year Rs 5202.500 Million), registered a growth of 34%, which is higher than the industry trend. While the Profit Before Tax of Rs 352.200 Million (Previous year Rs 72.300 Million) recorded a growth of 387%., the Profit After Tax of Rs 240.400 Million (Previous Year Rs 56.100 Million) grew by 328%. As a result, the Earnings per Share grew significantly to Rs 3.35 from Rs 0.78 in the previous year.

The restructuring of the organisation in terms of manpower and the various cost reduction measures helped the Company improve its efficiency over the previous year. EBITDA for the year was Rs 702.0 (10.1 % to net sales) against Rs 388.3 (7.4 % to net sales) in the previous year.

OPERATIONS

The company has undertaken a significant facility restructuring exercise during the year which included:

1. At Parwanoo: The Parwanoo Plant has matured in most of the segments - GRC shox, SOQI shox, McPherson struts and Front forks. The steady growth in all these product lines is seen during the year in all segments - OE and After Market. The plant has now firmly established its supply chain which is reflected in its consistent productivity during the year.

2. At Khandsa: It is a dedicated facility for Maruti-Suzuki India Ltd., and is undergoing expansion for meeting the requirement of new businesses awarded. The plating capacity has been augmented to its full potential which will also cater for requirements of piston rods for group Company Mando India starting from June 2010.

3. At Chakan: Major revamping of the plant is being undertaken starting with zero base layouts for smooth flow of material as well as reduce through put time. A new state of art plating facility has been ordered to be installed by Q2 of FY 11. Environment friendly water base painting system is also being installed. All these activities have been undertaken while the plant keeps meeting the demand for shocks and struts from OEM customers. Casting Facility The output has steadily increased during the year with improved quality standards. The facility stands fully commissioned and the output has been improving steadily with improved quality standards.

4. At Ambad: This TPM award winning plant has achieved several important milestones in operations during the year. It received approvals from OEMs like Yamaha and Honda for supply of two-wheeler products. The supply has already started. In addition, the plant has introduced special cost effective finishing operations resulting in better quality for front fork tube.

5.At Hosur: The facility producing shock absorbers and front forks for two wheelers has undergone sustainable modification 2 of Ptent layout with dust free pressurized assemblies. To meet its growing demand, the plant has carried out de-bottlenecking of front fork and shock absorber area. Special focus has been given to improve power distribution, compressed air capacity and standby power generation to counter the frequent and long power cuts.

6. At Dewas: The plant at Dewas has received approvals from prestigious customers like Daimler - Heavy Commercial Vehicles thanks to its robust processes. Taking advantage of improvements in the economic scenario, the plant has made record deliveries in the last quarter of 2009-10. The Dewas plant is dedicated to produce heavy duty shock absorbers for

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Development

Even as the world struggled with recession during the year 2009-10, the Indian economy showed its resilience by not only overcoming the recession but also recording a growth in GDP of about 7.4% - a decent growth rate, although less than what had otherwise been planned. Industrial output grew at a rate of 10.4% against 2.8% in the previous fiscal year when the global slowdown had hit the Indian economy. However, the last 6 months of the fiscal year saw industrial output grow at 14%, not the least because of the very positive stimulus packages given by Government of India. Within this economic scenario, the automotive industry grew by 25% in the fiscal year 2009-10.

The increased focus on infrastructural activities and increased plant outlay thereof boosted the sales of commercial vehicles which grew at 36% compared to a negative growth of 22% the year before. The general economic improvement also induced substantial growth in two wheelers (25%) and passenger cars (28%). Gabriel is an integral part of the automotive industry in India, supplying ride control products to all kinds of vehicle manufacturers like. passenger cars, commercial vehicles (HCV and LCV), SUVs and MUVs, two wheelers, and three wheelers. The Auto industry commenced on its path of recovery from recession from January '09 and picked up momentum during the Financial Year ending March '10, recording impressive growth:

	Vehicle Production during the year 2009-10 (Rs. In Millions)	Growth over Previous Year %
Passenger Vehicles	2.351	27.9
Commercial Vehicle	0.567	35.9
Two Wheeler	10.513	24.9

During this period, all OEMs of all segments initiated required investments and announced new launches. The Industry saw many world renowned players focusing on the small car segment and number of launches are expected in the coming years. This further reflects a strong confidence that OEMs have in the growth potential in India. It is estimated that in the next two years 26 to 30 models of vehicles (having a total business potential of ride control products of Rs. 5000 million) will be introduced in the market and these models are likely to add on to the current production with minimum cannibalization.

Outlook

Based on indicators given by the Government, Trade Associations and Economic Analysts, the outlook for the Indian economy, and even more so for the automotive industry is positive, wherein the overall growth in the automotive sector is likely to be 15% and the momentum likely to continue for next two to three years. This optimism is also based on investments which all players in the automotive industry are making in their respective businesses. The company expects to invest Rs. 1500 million over next 3 years to ensure that its expected growth is in tandem with the market requirements.

With a broad base of the customer's portfolio and strong progress in all segments, the company is confident of sustaining growth in the immediate future, and tide over industries short term turbulences, if any.

As volumes increase, Company would be reaching a critical mass. This would open opportunities for development of local technology comparable with world class technology.

3. Performance of the Company

The Passenger vehicles business grew by 33%, Commercial vehicles by 47%, Two wheeler Business by 35%, After market by 23% and Exports by 16% resulting in an overall growth of 34%.

(i) Two and Three wheelers:

The Company supplies products to all the OEMs in two wheeler segments except Hero Honda and with all customer like Bajaj Auto Limited, TVS Motor Company Limited, Suzuki Motor India Private Limited, Yamaha, Honda Motorcycle and Scooter India Private Limited. Company succeeded in increasing its share with existing models as well as aquiring future business to maintain its growth and market share.

(ii) Passenger Vehicles:

The Company consolidated its position with Maruti Suzuki India Limited By becoming the main supplier of ride control products.

The Company also acquired businesses of new application launched/to be launched by Volkswagen, General Motors, Nissan.

Supplies to TATA Nano commenced during the year, Company would have share in excess of 50% of Nano business.

(iii) Commercial Vehicles:

The Company ensured maintaining its existing market share by obtaining orders for most of the applications launched or to be launched in next 2 years by the major commercial vehicle producers like Tata Motors, Ashok Leyland, Mahindra & Mahindra and Force Motors.

(iv) After Market & Exports:

Focussed approach developed for the Replacement Market' saw the company's After market segment growing from Rs. 563 Mill to Rs. 690 Mill for 09-10. The momentum has been created for further growth in the coming years. The Company has introduced many products for the replacement market in the last year. Export turnover of Rs. 126.0 in 09-10 registered a growth of 16 % over the pervious year. The strategy developed for export business would continue and the Company targets its export business to Rs.1500 mil in four years.

Opportunities and threats

The growth momentum of the automotive industry offers an opportunity to the company in terms of increasing its business. The company plans to double its sales within a space of three years. The company's strategy of having its manufacturing facilities closer to the manufacturing plants of respective customers and of enabling a commensurate built up of its production capacities, has given an opportunity to acquire increasing business shares for Just In Time supplies to OEMs.

The growing business volumes also give the company an opportunity to optimise its costs structure for improved profitability. With critical mass in position, the company would be investing more in R&D activities to

further develop its technical competencies.

The potential and growth of Indian automotive sector is attracting the attention of all competing international players and encouraging existing manufacturers of ride control products to make investments. The competition is therefore likely to become stiff with the entry of more players. The company is sensitive to the competitive threats and is confident of its ability to sustain its dominant position due to its capabilities of developing and delivering cost effective quality products. Also the new orders booked by the company, including number of new launches in the forthcoming years would ensure the company's competitive position. The Company has also planned and initiated programs for capacity buildup.

Press Release

Gabriel India announces Q4 and FY10 results

PAT for FY 10 up by 328% at Rs 240.4 million

EBIDTA for FY10 rose by 94% at Rs 672.1 million

FY10 Consolidated Results (all comparisons with FY09; figures in millions)

Particulars	FY10	FY09	% Change
Total Revenue	7073.1	5336.6	Up by 33%
EBIDTA	672.1	346.7	Up by 94%
PAT	240.4	56.1	Up by 328%

Q4FY10 Standalone Results (all comparisons with Q4FY09; figures in millions)

Particulars	Q4FY10	Q4FY09	% Change
Total Revenue	1940.8	1410.4	Up 37.6%
EBIDTA	176.5	96.5	Up by 83%
PAT	63.9	7.1	Up by 800%

New Delhi May 29 2010:- Gabriel India Limited (GIL), market leader in Ride Control products in India, recorded a phenomenal growth in terms of PAT which grew by almost 800% in Q4FY10 on a y-o-y basis. The company also registered a healthy growth as the annual PAT stood at Rs 240.4 million which is up by 328%. The revenue for FY 10 also stood at Rs 7073.1 million against Rs 5336.6 million. The change in revenue has been up by 33%. The EBIDTA for FY10 is Rs 672.1 million as against Rs 56.1 million last year. The EBIDTA is up by 328%.

Performance Overview of Q4FY10 vis-à-vis Q4FY09 (y-o-y):

The total revenue has increased to Rs 1940.8 millions registering a growth rate of 37.6% in Q4FY10 over the corresponding period. The EBITDA also increased from Rs 96.5 million to Rs 176.5 millions, up by 83%.

Commenting on the results and performance, Mr. Prakash Kulkarni, Executive Chairman, Gabriel India Limited said, "We are happy to announce that Gabriel India Ltd., an Anand Group company, has posted a strong performance for the year. We will continue to consolidate and expand our markets with quality, technology and operation efficiency as main drivers. The substantial growth in PAT will also strengthen the faith of our investors in business strategy of Gabriel India. We would also like to thank stakeholders of the company for reposing their faith in our growth."

Mr. Arvind Walia , Chief Operating Officer & Managing Director, Gabriel India Limited also commented on the year’s performance saying,”The resurgent domestic auto market and strong export performance have led Gabriel India to post healthy results for this year. Our improved margins has been the result of our cost rationalization as well as positive revenue realization. We are happy with the faith customers have re-imposed on Gabriel and are confident of continued growth.”

Forward-Looking Statements:- This report contains forward –looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the company’s strategy for growth, market position, expenditures, and financial results, are forward –looking statements. Forward -looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The company’s actual results, performance or achievements could thus differ materially from those projected in any such forward - looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

About Gabriel India Limited:

Gabriel India Limited is the flagship Company of the Anand Automotive Group and was established in 1961. The company has technical agreements with KYB Corporation,Japan; Yamaha Motor Hydraulic Systems, Japan and KYBSE, Spain. The Company is a market leader for Ride Control Products with its brand 'Gabriel' being synonymous with Shock Absorbers. With a total manufacturing capacity of over 20 million units annually, Gabriel India Limited has the widest range of Ride Control Products - Shock Absorbers (gas & hydraulic), Struts (gas & hydraulic) & Front Forks, and is India’s leading manufacturer and supplier to OEM’s, as well as to Defence, Railways & the Aftermarket in India. It has six plants (Pune, Nashik, Hosur, Dewas, Khandsa, Parwanoo) and 2 ultra-modern, stateof- the-art R&D Centres at Pune for 4-wheelers and at Hosur for 2-wheelers.

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.45.21
UK Pound	1	Rs.74.30
Euro	1	Rs.64.40

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	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.