MIRA INFORM REPORT

Report Date :

13.01.2012

IDENTIFICATION DETAILS

Name :	JCB INDIA LIMITED (w.e.f. January 2003)
Formerly Known As :	ESCORTS JCB LIMITED
Registered Office :	B-1/ I-1, 2^nd Floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi – 110044
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.02.1979
Com. Reg. No.:	55-9431
Capital Investment / Paid-up Capital :	Rs. 90.766 millions
CIN No.: [Company Identification No.]	U74899DL1979PLC009431
TAN No.: [Tax Deduction & Collection Account No.]	DELJ05267D
PAN No.: [Permanent Account No.]	AAACE0078D
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacture of Construction and Earthmoving Equipments.
No. of Employees :	550 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 56000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of J C Bamford Excavators Limited, U.K. It is a well established and reputed company having excellent track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – 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 :	B-1/ I-1, 2^nd Floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi – 110044, India
Tel. No.:	91-11-23310145/ 26959157/ 26941139/ 26959997/ 40539745
Fax No.:	91-11-23310271/ 74/ 26959351/ 26959039/ 40539744
E-Mail :	rnanda@del12.vsnl.net.in sanjeev.gemawat@jcbindia.com cs.legal@jcb.com bhakta@kangacompany.com s.ramaswamy@jcb.com
Website :	http://www.jcbindia.com http://www.jcb.com
Location :	Industrial
Head Office/ Factory/ Warehouse:	23/7, Mathura Road, Ballabhgarh, Faridabad– 121 004, Haryana Punjab, India
Tel. No.:	91-129-2232308/ 2232874/ 2232875/ 2232805
Fax No.:	91-129-2233453/ 2232407/ 2230194
Location :	Industrial
Branches :	Located at: · Pune · Chennai · Kolkata

DIRECTORS

AS ON 14.09.2011

Name :

Sir Anthony Paul Bamford

Designation :

Director

Address:

JC Bamford, Excavators Limited, Rocestor, England, UK

Date of Birth/Age

23.10.1945

Date of Appointment :

27.09.1993

Din No.:

00560644

Name :

Mr. Onkar Singh Sunar

Designation :

Director

Address:

26, Ishwar Nagar, New Delhi – 110065

Date of Birth/Age

02.05.1953

Qualification :

MSC (Manufacturing Engineers)

Date of Appointment :

24.08.2001

Previous Employment :

JCB Limited, U.K.

Din No.:

00560684

S.No.	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
1	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	24/08/2001	24/08/2001	-	Active	NO
2	U74999DL2004PLC125276	JCB CONSTRUCTION EQUIPMENT LIMITED	Director	18/03/2004	18/03/2004	1/5/2008	Active	NO

Name :

Mr. Man Singh Laxmidas Bhakta

Designation :

Director

Address:

Readymoney Mansion 43, Veer, Nariman Road, Mumbai – 400001

Date of Birth/Age

03.12.1931

Date of Appointment :

21.01.2003

Din No.:

00001963

S.No.	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
1	L17110MH1973PLC019786	RELIANCE INDUSTRIES LIMITED	Director	27/09/1977	27/09/1977	-	Active	NO
2	L26942GJ1981PLC004717	AMBUJA CEMENTS LIMITED	Director	7/9/1985	7/9/1985	-	Active	NO
3	U24220GJ1991PLC016598	MICRO INKS LIMITED	Director	27/06/2000	27/06/2000	-	Active	NO
4	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	21/01/2003	21/01/2003	-	Active	NO
5	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Director	21/06/2004	21/06/2004	-	Amalgamated	NO
6	L28939PN1987PLC043953	BILCARE LIMITED	Director	31/12/2005	31/12/2005	31/07/2007	Active	NO
7	U45200MH1995PLC093041	LODHA DEVELOPERS LIMITED	Director	22/09/2009	1/8/2009	-	Active	NO
8	U40103WB2002PLC145294	ABHIJEET POWER LIMITED	Director	25/11/2010	3/11/2010	-	Active	NO

Name :

Mr. Michael Hargreaves

Designation :

Director

Address:

16, Northesk Street, Stone, Staffordshire, NA

Date of Birth/Age

01.03.1957

Date of Appointment :

30.09.2006

Din No.:

00684725

S.No.	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
1	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Director	30/10/2007	3/8/2006	-	Amalgamated	NO
2	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	30/09/2006	30/09/2006	-	Active	NO
3	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Director	25/04/2007	25/04/2007	-	Active	NO

Name :

Mr. David Frederick Peter Miller, UK

Designation :

Director

Address:

17, Lees Road, Bramhall Cheshire, Bramhall Vheshire, England

Date of Birth/Age

13.07.1953

Date of Appointment :

29.09.2003

Din No.:

00560666

Name :

Mr. Vipin Sondhi

Designation :

Managing Director

Address:

N – 43, Panchshila Park, New Delhi – 110017, India

Date of Birth/Age

27.04.1960

Date of Appointment :

01.02.2006

Email :

vipin.sondhi@hotmail.com

Din No.:

00327400

S.No.	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
1	U74899DL1979PLC009431	JCB INDIA LIMITED	Managing director	1/1/2009	1/2/2006	-	Active	NO
2	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Managing director	23/09/2008	1/2/2008	-	Amalgamated	NO
3	U74999DL2004PLC125276	JCB CONSTRUCTION EQUIPMENT LIMITED	Director	25/09/2008	1/5/2008	-	Active	NO
4	U29199DL2005PTC132969	JCB WORLD BRANDS INDIA PRIVATE LIMITED	Director	25/09/2008	1/6/2008	-	Active	NO

Name :

Mr. Alan Raussel Blake

Designation :

Additional Director

Address:

Dovedale House, Calwich, Ashbourne, Derbyshire, DE62HE

Date of Birth/Age

07.08.1949

Date of Appointment :

01.01.2010

Din No.:

02881062

S.No.	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
1	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	22/09/2010	1/1/2010	-	Active	NO
2	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Additional director	1/1/2010	1/1/2010	-	Amalgamated	NO
3	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Director	22/09/2010	1/1/2010	-	Active	NO

Name :

Mr. Mani Pillai Balaraman

Designation :

Director

Address:

H-153, Sarita Vihar, New Delhi – 110076, India

Date of Birth/Age

21.06.1958

Date of Appointment :

16.06.2011

Din No.:

03545572

Name :

Mr. S. Ramaswamy

Designation :

Director

Address:

Flat No. 105, Ghoanda Housing Society Gho 6, Alpha-1, Greater Noida - 201310, Uttar Pradesh, India

Date of Birth/Age

15.04.1962

Date of Appointment :

12.09.2011

Din No.:

01952258

S.No.	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
1	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Alternate director	1/1/2008	1/1/2008	-	Amalgamated	NO
2	U74999DL2004PLC125276	JCB CONSTRUCTION EQUIPMENT LIMITED	Director	25/09/2008	1/5/2008	-	Active	NO
3	U74899DL1979PLC009431	JCB INDIA LIMITED	Alternate director	12/9/2011	19/09/2008	-	Active	NO
4	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Alternate director	23/09/2008	23/09/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Subramaniam Ramaswamy
Designation :	Company Secretary
Address:	Flat No.105, Ghoranda Housing Society, G H O 6, Alpha – 1, Greater Noida – 201306, Uttar Pradesh, India
Date of Birth/Age	15.04.1962
Date of Appointment :	01.11.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.09.2011

Names of Shareholders	No. of Shares
J. C. Bamford Excavators Limited, UK	884994
J. C. Bamford Excavators Limited Jointly with Anthony Bamford	1
J. C. Bamford Excavators Limited Jointly with Michael Hargreaves	1
J. C. Bamford Excavators Limited Jointly with David Miller	1
JCB Mauritius Limited, Mauritius	22669
J. C. Bamford Excavators Limited Jointly with Alan Blake	1
J. C. Bamford Excavators Limited Jointly with Steve Ovens	1
J. C. Bamford Excavators Limited Jointly with Adrian Ross	22669

AS ON 14.09.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Construction and Earthmoving Equipments

Products :

Products	Item Code No.
Excavators and Loaders	842900

· JS 200l- Tracked excavator

· JCB Robot- Skid Steer

· JCB 4CX- Backhoe Loader

· JCB 3D- Backhoe Loader

· Artivulated Loading Shovel

· Skid Steer Loaders

· Track Excavator

· JCB 430Z- Artivulated loading shovel

· Backhoe Loaders

· Wheeled Excavator

· Mini Excavator

· Wheeled Loaders

· Skid Steer Loaders

· Telescopic Handlers

· Artivulated Dump Trucks

· Rough Terrain Forklifts

· Teletruks

· Excavtors and Loaders – 842900

Brand Names :

JCB

PRODUCTION STATUS (AS ON 30.03.2011)

Particulars	Installed Capacity *	Actual Production
Earthmoving machinery
-Ballabhgarh Plant**	19,515	21,331
-Pune Plant	2,538	2,025
Welded Steel Fabrication (In MT)***	44,220	38,842

* Installed capacity is as certified by the Management and relied upon by the auditors, being a technical matter.

A. Installed capacity is on single shift basis for the assembly of 3DX Backhoe Loader and its equivalent machines based on the assumption that the fabrication / machine shops shall work on double / triple shift basis for 5 days a week.

B. (i) Installed capacity is on single shift basis for the assembly of JS 200 excavator and its equivalent machines for 5 days a week but on the assumption that the paint shop shall work on triple shift basis for 6 days a week.

(ii) Production includes 13 machines used for experimental purposes.

C. (i) Installed capacity of Welded Steel Fabrication is based on Steel Cutting Capacity on triple shift basis for 6 days a week.

(ii). Production of Welded Steel Fabrication includes 26,239 MT (Previous Year 19,942 MT) used in own production of Earthmoving Machinery

GENERAL INFORMATION

No. of Employees :	550 (Approximately)
Bankers :	· ANZ Grindlays Bank PLC · Citi Bank · Canara Bank, Nehru Ground, Faridabad · Standard Chartered Bank, 17, Parliament Street, New Delhi, India

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building No.8, Tower B, DLF Phase II DLF Cyber city, Gurgaon – 121004, Haryana, India
Holding Company :	· J. C. Bamford Excavators Limited, U.K.
Parent of Holding Company :	· JCB Services, UK
Ultimate Holding Company :	· Transmission and Engineering Services, Netherlands B. V.
Memberships :	· Confederation of Indian Industry
Subsidiaries :	JCB Construction Equipment Limited [CIN No.: U74999DL2004PLC125276] · JCB Financial Advisor Private Limited, India · JCB Mauritius Limited · JCB Heavy Products Limited, UK · JCB Transmissions, UK · JCB Sales Limited, UK · JCB Earthmovers Limited, UK · JCB Material Handling Limited UK · JCB Landpower Limited, UK · JCB Inc., USA · JCB Compact Products Limited, UK · JCB Cab Systems Limited, UK · JCB Power Systems Limited, UK · JCB Sales Asia Pacific PTE Limited, Singapore · J C Bamford Investments, UK · JCB Defence Products Limited, UK · JCB Vibromax GmbH, Germany
Associates :	· JCB Research, UK · Bholdings Limited, UK · JCB World Brands India Private Limited, India · JCB Power Products Limited, UK
Firm in which one director is a partner:	Kanga and Company
Trust :	Employees Superannuation Trust

CAPITAL STRUCTURE

As on : 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4,500,000	Equity Share	Rs. 100/- each	Rs. 450.000 Millions
56,500,000	Preference Shares	Rs. 100/- each	Rs. 5650.000 Millions
	Total		Rs. 6100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
907,669	Equity Share	Rs. 100/- each	Rs. 90.766 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		90.766	88.500	88.500
2] Share Application Money		0.000	2.267	0.000
3] Reserves & Surplus		13869.537	9044.452	8493.286
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13960.303	9135.219	8581.786
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		59.212	80.527	19.749
TOTAL		14019.515	9215.746	8601.535
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5576.793	5183.001	3091.959
Capital work-in-progress		254.902	283.232	152.347
INVESTMENT		0.500	0.500	5134.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3330.890	2518.696	968.228
	Sundry Debtors	5769.076	4034.170	1874.130
	Cash & Bank Balances	5451.875	1944.175	863.071
	Other Current Assets	16.334	2.889	0.509
	Loans & Advances	2153.119	1544.248	670.000
Total Current Assets		16721.294	10044.178	4375.938
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7004.412	5167.954	2766.894
	Other Current Liabilities	808.297	478.115	243.395
	Provisions	721.263	649.096	1142.520
Total Current Liabilities		8533.972	6295.165	4152.809
Net Current Assets		8187.322	3749.013	223.129
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14019.515	9215.746	8601.535

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	44254.020	30949.971	19696.317
		Other Income	1036.006	675.627	634.589
		TOTAL (A)	45290.026	31625.598	20330.906
Less	EXPENSES
		Consumption materials changes inventories	28981.820	19205.762
		Employee related expenses	1833.724	1288.691	17279.991
		Administrative selling other expenses	6463.958	4857.662
		Restructuring Charges	0.000	0.000
		TOTAL (B)	37279.502	25352.115	17279.991
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8010.524	6273.483	3050.915
Less	FINANCIAL EXPENSES (D)		55.583	31.332	15.334
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7954.941	6242.151	3035.581
Less/ Add	DEPRECIATION/ AMORTISATION (F)		647.840	642.395	307.985
	PROFIT BEFORE TAX (E-F) (G)		7307.101	5599.756	2727.596
Less	TAX (I)		2482.016	1469.212	961.749
	PROFIT AFTER TAX (G-I) (J)		4825.085	4130.544	1765.847
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8520.591	7120.096	9602.685
Less	APPROPRIATIONS
		Interim Dividend Paid	NA	1858.500	2840.850
		Interim Dividend Payable	NA	47.605	619.500
		Corporate Dividend Tax Paid / Payable on interim Dividend	NA	323.943	588.086
		Transfer to General Reserve	NA	500.000	200.000
	BALANCE CARRIED TO THE B/S		13345.676	8520.591	7120.096
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on F.O.B. basis	3279.819	1992.798	542.726
		Export of services		74.677	0.000
	TOTAL EARNINGS		3279.819	2067.475	542.726
	IMPORTS
		Raw material, components and spare parts	3404.266	2207.429	716.160
		Capital goods	177.626	82.901	153.399
		Trading machines	73.878	36.764	65.194
	TOTAL IMPORTS		3655.770	2327.094	934.753
	Earnings Per Share (Rs.)		5315.90	4550.71	1995.31

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.65	13.06	8.69
Net Profit Margin (PBT/Sales)	(%)	16.51	18.09	13.85
Return on Total Assets (PBT/Total Assets}	(%)	52.34	36.77	36.52
Return on Investment (ROI) (PBT/Networth)		0.52	0.61	0.31
Debt Equity Ratio (Total Liability/Networth)		0.61	0.69	0.48
Current Ratio (Current Asset/Current Liability)		1.95	1.60	1.05

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from A-36, Mohan Co-operative Industrial Area, New Delhi - 110 044, India to the present address w.e.f. 01.05.2007

AMALGAMATION OF JCB MANUFACTURING LIMITED WITH THE COMPANY

The year 2009-10 has been significant one consequent to amalgamation of JCB Manufacturing Limited with the Company. The business of fabrication components, Heavyline machinery and design center of erstwhile JCB Manufacturing Limited, becoming total integral part of the company's operations, would further help to strengthen the leadership position of the Company in the construction equipment market in India. The High Court of Judicature at Mumbai had sanctioned the order approving the scheme of amalgamation on 5^th February 2010. The High Court of Judicature at Delhi has thereafter sanctioned the aforesaid scheme vide its order dated 26* May, 201(Pursuant to the above orders, JCBM, the transferor company stands dissolved 01and from the effective date viz. 23rd June 2010. The scheme is operative from the appointed date of 1^st April 2009. Accordingly, the balance sheet and profit and loss account of the company (amalgamated entity) are being presented to the members for adoption. Hence the figures of the current financial year are not comparable with the previous year.

Consequent to the amalgamation, the authorized share capital of the company stands increased from Rs. 100 Millions to Rs.6100 Millions. Pursuant to the scheme of amalgamation, one equity shares of Rs. 100 each fully paid up of the company were to be issued for every 148 (One hundred forty eight) equity shares held by the members of erstwhile JCB Manufacturing Limited . Accordingly, 22,669 equity shares of Rs. 100 each fully paid up were allotted by the company on 5^th July, 2010 to the members of erstwhile JCB Manufacturing Limited as on the record date i.e. 5^th July, 2010.

MARKET OUTLOOK

The world output recovered in 2010 growing by 5% after a decline of 0.6% in 2009. While growth in the first half of the year stood at 5.25%, there was a deceleration in the second half which recorded a growth of 3.75%. Further, accommodative policies adopted by most governments, improvement in business confidence and financial conditions encouraged investments and helped arrest rising unemployment levels and boost consumption. Consequently, recovery has become more self-sustaining and the risk of a double-dip recession in advanced economies has abated. The recovery, however, is broadly moving at two speeds. While economic growth in the advanced economies remained modest at around 3% in 2010 after a decline of 3.4% in 2009, the emerging and developing economies recorded robust growth in excess of 7% during the year– led primarily by China and India. According to the International Monetary Fund (IMF), world real GDP growth for 2011 is forecast at 4.4%, representing a modest slowdown from 2010 levels. Real GDP in the advanced economies is expected to grow by 2.5% while that in the emerging and developing economies is forecast to grow by 6.5%. However, downside risks to these estimates continue to outweigh the upsides. In the case of advanced economies, the key concerns revolve around weak sovereign balance sheets, the possibility of financial troubles in peripheral Euro area spreading to core Europe, high levels of unemployment, the continued weakness of the US real estate market and the lack of progress in formulating medium-term fiscal consolidation plans. In the emerging economies, key risks relate to overheating, asset price bubbles, rapid rise in inflationary pressures, spurt in commodity prices and the potential for boom-bust cycles could eventually result in a hard landing in these economies. With emerging markets accounting for 40% of global consumption and two-thirds of global growth, a slowdown in these economies could dent global recovery significantly. Closer home, after growing at 8.0% in 2009/10, the Indian economy picked up further steam in 2010/11 recording a real GDP growth of 8.6% during the year. While the Agricultural sector posted an above-trend growth of 5.4% aided in part by a low base effect, Industry and Services grew by 8.1% and 9.6% respectively. After clocking an impressive growth of 8.9% in the first half of the year, the economy showed signs of moderation in the second half especially in capital goods production and investment spending. A good performance on the external front with exports growing by 37.5% even as imports grew by 21.6% during the year helped reduce the current account deficit to approximately 2.5% of GDP from 2.8% in the previous year. The Centre’s fiscal deficit for the year stood at 5.1% of GDP – a significant improvement from 6.4% recorded in 2009/10 – driven by buoyant tax collections and proceeds of the 3G spectrum auction. However, amongst these positives, the persistently high level of inflation in the economy despite good monsoons was a key cause for concern. .

The inflationary pressures, which emanated from food items clearly spilled over and became generalized, as the year progressed. The recent slowdown in Industrial growth, as reflected by the Index of Industrial Production (IIP) and data pertaining to the six core industries, is also a cause for concern. A comprehensive growth strategy for rural India, including the agricultural sector which continues to underperform, is necessary to address the serious issues relating to sustainability and inclusive growth. The government’s focus on social sector programmes such

as Bharat Nirman, National Rural Employment Guarantee Scheme (NREGS), Sarva Shiksha Abhiyan, food security legislation and strategies to improve benefit delivery mechanisms have the potential to transform the Indian rural landscape. It is here that unique business models can supplement the efforts of the government in creating societal value and enhancing societal capital. It is an essential pre-requisite of rural development that markets are co-created with local communities and in a constructive public-private-people partnership. The Company continues to focus on expanding its customer base through increased efficiency of the equipment and technology up-gradation and thereby enhance shareholders value. The Company continues to reach at all segments of the customer base by way of regional launches and customers’ meet, increased advertising and share of voice by way of electronic and print media. With this objective in mind and hope for favourable conditions, through a large well spread network of fifty four dealers in India and dealers in neighboring countries viz., Bhutan, Nepal and Bangladesh and Sri Lanka, twenty regional and area offices, one national parts centre at Faridabad and three regional parts warehouses at Pune, Kolkata and Chennai and presence at more than 300+ locations nationwide along with a range of products in its basket, the Company is well equipped to provide the best products and parts, support and services to its increasing number of customers.

The company continues to work with its dealer network to improve their infrastructure and thereby to provide the best services and support to the customers. With a view to enhance shareholder value, the Company continues to focus on expanding its customer base through cost reduction, increased efficiency and technology up gradation. The Company’s confidence in building a positive future stems from the continued and dedicated focus of its management team to maximize customer satisfaction, growth in revenue, increased market penetration and addition to the product portfolio.

BUSINESS ENVIRONMENT

Over the last 3-4 years, various new entrants made inroad to the Indian construction equipment industry. Some of

the biggest names belong to Japan, the US and Korea. Besides, a number of domestic companies are either expanding their domestic capacities or diversifying their product portfolio providing huge challenges to the company. With the emergence of new market players and expansion plans underway, the industry is expected to become more competitive. Despite the gains, it is important to note that the construction equipment industry lost between 30 percent and 50 percent of its business in the 2008-2009 period, meaning a full recovery will require years of continued, strong expansion with focus on infrastructure and trade policies.

BUSINESS PERFORMANCE

The Sales and Other Income of the Company for the financial year of the Company were Rs. 45290.000 millions as against Rs. 31625.600 millions for the previous financial year. The Profit before tax (after interest and depreciation charges) of Rs. 7307.100 millions and the Profit after tax of Rs. 4825.100 millions for the financial year as against Rs. 559.970 millions and Rs. 4130.500 millions respectively for the previous financial year. JCB India’s Ballabgarh Plant production has been on the rise. During Financial Year 2010-11, it produced 21,331 machines up by 39.4% compared to 15,299 nos. during 2009-10. The production of machines at the Pune Plant also reflected significant growth with the production of 2,025 machines as against 1,406 machines reflecting an impressive growth of 44%. In volume The Fabrication Business Unit at Pune also recorded a stellar growth with production of 38,842 MT as against 26,019 MT during the previous year resulting in a growth of 48%. The company continues to focus on managing cash through improved working capital management and efficient utilization of its assets. With the merger of the company, integration of major processes has been achieved working as integrated team in India. In order to integrate the IT functions with Pune plant, a project name SPANDAN was launched which is expected to go live in this year accomplishing the SAP consolidation process. With the Customer Relationship Management (CRM) project "Project Srujan" which was kick started in the previous year has covered 60% of dealers in business successfully integrating the Information Technology systems across the country resulting in consistent processes across dealerships and better services to the customers. The Company continues its endeavour to perform well and maintain its leadership position in the market. Various steps taken by your Company have helped to retain its leadership position in Backhoe segment and increase in market share in Excavators , Wheeled Loaders, Compactors and Pick and Carry Cranes.

KEY MILESTONES, NEW PRODUCT LAUNCH AND INITIATIVES

The Company, the first construction equipment manufacturer to manufacture 100,000 construction machines in India introduced new livery with the 100,000th machine at a glittering function held in the Pune factory at Talegaon in the presence of over 150 customers and the entire JCB India dealership. The key customers of the company and media were invited for a networking dinner with HRH Prince Edward in October 2010.

SUBSIDIARIES

During the period, JCB Construction Equipment Limited (JCBCE) continues to be a wholly owned subsidiary of the Company with a paid-up capital base of Rs. 0.500 millions JCBCE has not commenced its operations during the period.

CONTINGENT LIABILITIES IN RESPECT OF :

	Particulars	As at March 31, 2011
1	Claims against the Company not acknowledged as debts, to the extent ascertainable:
(a)	Consumer Forum and Civil suites	114.161
(b)	Escorts Finance Limited	4.585
(c)	Claims by Employees	8.018
2	Excise duty and service tax show cause cum demand notices, being contested by the Company	1493.800
3	Demand from Municipal Corporation of Faridabad and Haryana Urban Development Authority, disputed by the Company(net of Rs.8.319 Millions deposited under protest)	8.909
4	Demand from Employees State Insurance and Provident Fund, disputed by the Company	4.060
5	Sales Tax demand	88.564
6	Income-tax demands against the Company in respect of which the Company is in appeal before the Income-tax Appellate Tribunal / other Authorities.	761.450
7	Others	20.972

The amounts above represent the best possible estimates arrived on the basis of available information.

The future cash flows and possible reimbursements are dependant on outcome of various legal proceedings pending with various forums/authorities.

FORM 8:

Name of the company	ESCORTS JCB LIMITED
Presented By	Mr. N. Nagesh, Company Secretary
1) Date and description of instrument creating the change	Joint Deed of hypothecation of Movable Plant and Machinery and Equipment dated 12.05.1994
2) Amount secured by the charge/amount owing on the securities of charge	Rs.38.000 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	First Pari Passu charge in favour of the participating Banks over all the Company’s Moveable Plant, Machinery, Equipment, Tools, Spares and Accessories at its works at 23/7, Mathura Road, Ballabgarh, or else where provided however that the said charge shall not extent to or cover such items or plant and machinery or equipment purchased or which may hereafter be purchased by the company by availing credit financial facilities form one or more financial institutions.
4) Gist of the terms and conditions and extent and operation of the charge.	First pari passu charge in favour of the participating banks as mentioned in the Joint Deed to secure the credit facilities granted to be granted by the participating banks upto the overall aggregate limit of Rs.193.000 Millions in which the individual aggregate limit of Canara Bank is Rs.38.000 Millions.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Nehru Ground, Faridabad [Haryana]
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

FIXED ASSETS

v Land

v Building

v Plant and Machinery

v Furniture and Fixture

v Vehicles

WEBSITE DETAILS:

PROFILE:

Subject is the manufacturer of Earthmoving and Construction equipment is a fully owned subsidiary of JC Bamford Excavators Limited (U.K).

J.C. Bamford Excavators Limited UK, one of the leading manufacturers of earthmoving and construction equipment is considered one of Britain’s a most impressive success stories. It produces over 300 different models, which are sold in over 150 countries. JCB is also the world number one producer for backhoe loaders.

JCB India Limited started operations in 1979 as a joint venture company. In 2003 JCB UK acquired 100% shares in the joint venture and today JCB is the fastest growing company in the Indian earthmoving and construction equipment industry. The company is a pioneer in the industry and has been recording excellent growth rates. The company has developed and expanded through launching revolutionary products and adherence to world class JCB corporate identity norms. Today in India, JCB has sold over 100,000 machines and out of every two Construction equipment sold in India, one is a JCB.

JCB India has the World’s largest Backhoe Loader manufacturing facility at Ballabgarh in Haryana which was expanded and in April 2009 inaugurated by Sir Anthony Bamford. It has two manufacturing facilities at Pune comprising of:

• Fabrications – India Business Unit, is a component manufacturing plant and is export-oriented. It caters to the needs of JCB factories both in India and abroad.

• Heavyline – India Business Unit, is a Heavy Line manufacturing plant that produces Excavators, Wheel Loading Shovels and Vibratory Compactors.

• It has India’s largest Parts and Technical Training Centre for construction equipment in India.

• One of India's largest design centre for construction equipment

JCB India therefore offers a diverse range of unmatched Backhoe Loaders. Wheeled Loaders, Excavators, Skid Steer loaders, Telehandlers, Compactors and Pick and Carry Crane:

Backhoes

• Their choice of superlative Backhoe Loaders includes 3DX (76 HP). 3DX Xtra (84hp), 3DX Super (96 HP) and 4DX (96 HP) depending on the customers requirements and applications

Wheel Loaders

• The options in the exceptional two wheeled loaders are 430Z (127 HP. 1.7 cu.m), 432ZX (150 HP, 2.3 cu.m) and 456ZX (216 HP, 3.3 cu.m).

Excavators

• Their best and India's finest Excavator range includes JS 80 (8 ton), JS 140 (14 ton), JS 200 (20 ton). JS 210 LC (21 ton) and JS 330 (33 ton) and recently launched JS200HD (Quarry Machine) suited to diverse weight requirements

Skid Steers

• They also have 3 different Robotic Skid Steer Loaders, viz. 160/170/190 all of which come with a wide range of attachments to suit specific customer needs

Telehandlers

• They have two models in telehandlers namely 506C and 528S which are widely used in construction of multi-storyed buildings, material handling at ports, industrial purpose, etc.

Compactors

• They have two models of compactor called Vibromax VM115 and VMT 850, which are widely used in construction of roads and highways.

Mobile Cranes

• JCB India has recently launched mobile crane – Liftall. Currently there are two models Liftall 1253 and Liftall 1202 in the 12T category. Cranes are extensively used as Material Handling as well as construction equipment.

JCB India designs and develops the products on the basis of needs and requirements of the customers as well as on the growing infrastructure needs of the country. All machines are high quality products, at par with the world's best and built to withstand extreme vagaries of climate, while delivering their optimum performance.

JCB India believes in extraordinary customer satisfaction, as they are the principal force guiding all JCB initiatives and endeavors. They implement this mission through our comprehensive Network of 51 dealers and over 362 outlets, which provide expert servicing for their world-class machines. Their Product Support makes a diligent and persistent effort to ensure that every JCB machine is in best operational conditions at all times. They have a dedicated parts center in Faridabad and parts depots in Chennai, Pune and Kolkata.

Engineering excellence and innovation are the hallmarks of JCB and they are streamlining their facilities in India as per world standards. With the valued inputs from their customers, JCB India will continue to innovate and produce equipment and services to best suit the needs of their markets. This indomitable spirit and their unwavering commitment to serve while keeping pace with the changing tastes of their customers, has helped in winning over their customers over, time and again.

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. 51.74
UK Pound	1	Rs. 80.00
Euro	1	Rs. 65.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		72

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.