MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	ASHOK LEYLAND JOHN DEERE CONSTRUCTION EQUIPMENT COMPANY PRIVATE LIMITED
Registered Office :	7^th Floor, Shyamala Towers, 136, Arcot Road, Saligramam, Chennai – 600093, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.07.2009
Com. Reg. No.:	18-072136
Capital Investment / Paid-up Capital :	Rs.847.363 Millions
CIN No.: [Company Identification No.]	U29253TN2009PTC072136
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Marketer, Distributor and Seller of equipments for use in the construction and mining industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2900000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a 50:50 joint venture between Ashok Leyland Limited and John Deere Asia (Singapore) Private Limited. It is a company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	7^th Floor, Shyamala Towers, 136, Arcot Road, Saligramam, Chennai – 600093, Tamilnadu, India
Tel. No.:	91-44-66384000
Fax No.:	91-44-66384212
E-Mail :	amrolia.jn@ashokleyland.com
Branch Office :	Chinna Obulapuram Village, Gummudipoondi Taluk Thiruvallur Dist - Tamilnadu India

DIRECTORS

As on 07.09.2011

Name :

Dr. Venkataramani Sumantran

Designation :

Director

Address :

711, Valli Ammai Aachi Road, Kotturpurarn, Chennai- 600085, Tamil Nadu, India

Date of Birth/Age :

27.09.1958

Date of Appointment :

03.08.2010

DIN No.:

02153989

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U34102TN2008PLC067838	Nissan Ashok Leyland Powertrain Limited	Director	24/07/2009	22/05/2008	-	Active	NO
U34102TN2008PLC067839	Ashok Leyland Nissan Vehicles Limited	Director	24/07/2009	22/05/2008	-	Active	NO
U34300TN2008PLC067840	Nissan Ashok Leyland Technologies Limited	Director	24/07/2009	22/05/2008	-	Active	NO
U29130TN2007PLC064471	Automotive Infotronics Limited	Director	30/09/2008	21/06/2008	-	Active	NO
L34101TN1948PLC000105	Ashok Leyland Limited	Director	28/07/2009	21/10/2008	-	Active	NO
U72400TN2009PLC072067	Defiance Technologies Limited	Director	6/09/2010	24/06/2009	-	Active	NO
L31900TN1985PLC012343	Ucal Fuel Systems Limited	Director	29/09/2009	29/07/2009	-	Active	NO
U73100TN2006NPL059651	IIT Madras Research Park	Additional director	15/12/2009	15/12/2009	-	Active	NO
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Director	7/09/2011	3/08/2010	-	Active	NO
U66030MH2008PLC180206	Ashley Aviation Limited	Director	3/08/2011	24/09/2010	-	Active	NO
U34200TN2008PLC080987	Ashok Leyland Defence Systems Limited	Director	13/05/2011	7/02/2011	-	Active	NO

Name :

Jehanbux Nariman Amrolia

Designation :

Director

Address :

6, First Avenue, Boat Club Road, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

0710314 948

Date of Appointment :

01.07.2009

DIN No.:

00141433

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U34100TN1980PLC008389	Automotive Coaches and Components Limited	Nominee director	19/06/1998	19/06/1998	-	Active	NO
U80302TN2004PLC053288	Chennai Business School Limited	Director	24/02/2007	24/02/2007	-	Active	NO
U29253MH2007PLC169236	Shree Radhe Automotive Coaches and Components Limited	Director	27/03/2007	27/03/2007	26/09/2008	Active	YES
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Director	3/08/2010	1/07/2009	-	Active	NO

Name :

Karl Anders Gotthard Spare

Designation :

Director

Address :

76 Selwyn Avenue, Richmond, Surrey, London TW92HD

Date of Birth/Age :

07.06.1946

Date of Appointment :

17.02.2011

DIN No.:

00668550

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
L34101TN1948PLC000105	Ashok Leyland Limited	Director	11/06/2004	11/06/2004	30/12/2010	Active	NO
L27104TN1959PLC003849	Hinduja Foundries Limited	Director	31/07/2008	30/01/2006	29/03/2011	Active	NO
U93090TN1989PLC033174	Ashok Leyland Project Services Limited	Director	28/04/2006	28/04/2006	25/07/2010	Active	NO
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Director	7/09/2011	17/02/2011	-	Active	NO

Name :

Mr. Michael John Mack Jr

Designation :

Director

Address :

5859 Eagle Ridge Road, Bettendod 5272,United States of America

Date of Birth/Age :

01.11.1956

Date of Appointment :

20.10.2009

DIN No.:

02787877

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Director	3/08/2010	20/10/2009	-	Active	NO

Name :

Mr. Martin Laurence Wilkinson

Designation :

Director

Address :

8505 Praririe Ridge, Dr. Johnston, 50131, United States of America

Date of Birth/Age :

29.12.1955

Date of Appointment :

17.08.2010

DIN No.:

03143810

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Director	7/09/2011	17/08/2010	-	Active	NO

Name :

Randal Alan Sergesketter

Designation :

Director

Address :

4804 Millens Bay Court, Apex, 27539, United States of America

Date of Birth/Age :

23.11.1957

Date of Appointment :

03.08.2010

DIN No.:

03024461

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Director	7/09/2011	3/08/2010	-	Active	NO

Name :

Mr. Shivaji Rao

Designation :

Alternate director

Address :

D 5 and 6, Radhika Empire, Wanowrie, Pune - 411041, Maharashtra, India

Date of Birth/Age :

10.04.1968

Date of Appointment :

17.08.2010

DIN No.:

01077334

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U27310HR1988PLC044023	Usha Amorphous Metals Limited	Director appointed in casual vacancy	11/12/2006	11/12/2006	21/05/2007	Active	NO
U29253TN2009PTC072136	Ashok Leyland John Deere Construction Equipment Company Private Limited	Alternate director	17/08/2010	1/07/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 07.09.2011

Names of Shareholders	No. of Shares
Ashok Leyland Limited, India	50868150
John Deere Asia (Singapore) Private Limited, Singapore	50868150
Total	101736300

Equity Share Break up (Percentage of Total Equity)

As on 07.09.2011

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	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Marketer, Distributor and Seller of equipments for use in the construction and mining industry.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Excavators and Loaders	842900

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Corporate Accounts Group Branch, 18/3 Rukmini Lakshmipathi Road, Egmore, Chennai – 600008, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Rupee Term Loans bank secured	602.163	0.000
Total	602.163	0.000

Note:

Secured by a first charge created on the Fixed Assets of the Company

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India
PAN.:	AACFD4815A
Joint Venture :	· Ashok Leyland Limited CIN No.: L34101TN1948PLC000105 · John Deere Asia (Singapore) Pte Limited · John Deere Construction and Forestry Company, USA

CAPITAL STRUCTURE

After 07.09.2011

Authorised Capital : Rs.1410.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.1017.363 Millions

As on 07.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
102000000	Equity Shares	Rs.10/- each	Rs.1020.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
101736300	Equity Shares	Rs.10/- each	Rs.1017.363 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
102000000	Equity Shares	Rs.10/- each	Rs.1020.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84736300	Equity Shares	Rs.10/- each	Rs.847.363 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		847.363	584.815
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(103.309)	(11.827)
NETWORTH		744.054	572.988
LOAN FUNDS
1] Secured Loans		602.163	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		602.163	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		1346.217	572.988
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1185.750	397.971
Capital work-in-progress		7.129	16.326
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	65.840	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	35.675	100.669
	Other Current Assets	0.153	0.163
	Loans & Advances	149.900	63.646
Total Current Assets		251.568	164.478
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	90.680	4.630
	Other Current Liabilities	5.072	0.834
	Provisions	2.478	0.323
Total Current Liabilities		98.230	5.787
Net Current Assets		153.338	158.691
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1346.217	572.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	0.000	0.000
		Other Income	1.875	2.915
		TOTAL (A)	1.875	2.915
Less	EXPENSES
		Employees remuneration and benefits		3.262
		General and other administrative expenses		10.365
		TOTAL (B)	87.410	13.627
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(including financial expenses)	(10.712)
Less	FINANCIAL EXPENSES (D)			0.001
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(85.535)	(10.713)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.367	0.146
	PROFIT BEFORE TAX (E-F) (G)		(90.902)	10.859
Less	TAX (H)		0.579	0.968
	PROFIT AFTER TAX (G-H) (I)		(91.481)	(11.827)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(11.827)	0.000
	BALANCE CARRIED TO THE B/S		(103.308)	(11.827)
	IMPORTS
		Raw Materials	27.860	0.000
		Capital Goods	85.433	0.000
	TOTAL IMPORTS		113.293	0.000
	Earnings Per Share (Rs.)		(1.23)	(0.95)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	4878.98	372.52
Return on Total Assets (PBT/Total Assets}	(%)	(6.32)	(1.93)
Return on Investment (ROI) (PBT/Networth)		0.12	0.02
Debt Equity Ratio (Total Liability/Networth)		0.94	0.01
Current Ratio (Current Asset/Current Liability)		2.56	28.42

LOCAL AGENCY FURTHER INFORMATION

Note: The registered address of the company 1, Sardar Patel Road, Guindy, Chennai – 600032, Tamilnadu, India has been shifted to the present address w.e.f. 01.11.2010

STATUS OF PROJECT

During the year, the company has created a state of the art manufacturing facility at Gummidipoondi in record time, setting a bench mark for the Industry. The manufacturing facility was inaugurated on 21^st October 2010 and the facility is accommodating the four key manufacturing activities that will provide competitive advantage through development of core competencies in the areas of Fabrication, Machining, Painting and Assembly.

During the year, the company has started pre-production activities and manufacture of backhoe loader machine for testing the manufacturing process and product verification and validation purpose.

During the year, the company had built 9 proto machines at ACCL, Pondicherry Facility, of which 2 machines were sent to John Deere, USA for product verification and validation, 3 were sent to John Deere, Technical Centre at Pune, 3 were given to customers for their evaluation and feedback and 1 machine sent to ARAI for homologation certification. The company has received encouraging and positive feedback from the customers.

During the year, the company has successfully implemented ERP (SAP) consisting of FI, MM, QM, PM and PP modules and in the process of implementing HRM and CRM modules.

The Joint Venture Partners have infused equity share capital of Rs.262.5 million into this venture during the year. In order to fund the project, besides equity share capital, the company has obtained medium term loan for Rs.1,000 million from State Bank of India and drawn the loan to the extent of Rs.602 million at a very competitive interest rate.

During the year, the company has appointed dealers in Tamil Nadu, Kerala, Andhra Pradesh and South Karnataka, being the area covered under the phase I launch and will continuously pursue to expand the market in a phased manner by appointment of dealers' pan-India.

FIXED ASSETS

· Land – Freehold

· Buildings

· Furniture and Fixtures

· Office Equipments

· Data processing equipments

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.49.13
UK Pound	1	Rs.77.85
Euro	1	Rs.64.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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	-

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