MIRA INFORM REPORT

Report Date :

20.01.2012

IDENTIFICATION DETAILS

Name :	ADITYA BIRLA FINANCE LIMITED
Formerly Known As :	BIRLA GLOBAL FINANCE COMPANY LIMITED
Registered Office :	Indian Rayon Compound, Veraval – 362266, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.08.1991
Com. Reg. No.:	04-064603
Capital Investment / Paid-up Capital :	Rs.4059.648 Millions
CIN No.: [Company Identification No.]	U65990GJ1991PLC064603
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject offers specialized solutions in areas of Capital Markets, Corporate Finance and Project Finance.
No. of Employees :	Information Declined by Management

RATING & COMMENTS

MIRA’s Rating :

Ba [53]

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

Maximum Credit Limit :	USD 19800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is one of India’s leading non banking financial companies. It is an established company having fine 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.

INFORMATION DECLINED BY

Management non cooperative

LOCATIONS

Registered Office :	Indian Rayon Compound, Veraval – 362266, Gujarat, India
Tel. No.:	91-22-43567225
Fax No.:	91-22-43567266
E-Mail :	Muthiah.ganapathy@adityabirla.com
Website :	http://www.adityabirla.com
Corporate Office :	One Indiabulls Center, Tower 1, 18^th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-43567000
Fax No.:	91-22-43567444
Branch Office :	Apeejay, 2^nd Floor, Fort, Shahid Bhagat Singh Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22880660

DIRECTORS

As on 23.09.2011

Name :

Mr. Bishwanath Mangilal Puranmalka

Designation :

Director

Address :

Antariksha Apartment, Flat No. 182,. 19th Floor, 95/96 Kaka Saheb Gadgil Marg, Prabhadevi., Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

02.11.1935

Date of Appointment :

31.03.1999

DIN :

00007432

Other Directorship :

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	U61190GJ1997PLC062406	ADITYA BIRLA MONEY MART LIMITED	Director	28/07/1998	28/07/1998	-	Active	NO
2	U65990GJ1991PLC064603	ADITYA BIRLA FINANCE LIMITED	Director	31/03/1999	31/03/1999	-	Active	NO
3	U99999MH2000PLC128110	BIRLA SUN LIFE INSURANCE COMPANY LIMITED	Director	4/8/2000	4/8/2000	-	Active	NO
4	U99999HP1994PLC031518	BINA POWER SUPPLY COMPANY LIMITED	Director	11/11/2003	11/11/2003	15/05/2008	Amalgamated	NO
5	U74899MH1994PTC166755	BIRLA SUN LIFE TRUSTEE COMPANY PRIVATE LIMITED	Director	23/09/2004	23/09/2004	-	Active	NO

Name :

Mr. Darius Jehangir Kakalia

Designation :

Director

Address :

Rebello House, ‘B’ Wing, 9th Floor, Flat No. 54, 132, Hill Road, Bandra (West), Mumbai - 400050, Maharashtra, India

Date of Birth/Age :

19.12.1948

Date of Appointment :

15.03.2001

DIN :

00029159

Other Directorship :

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	U45200MH1975PTC018269	ABS INDUSTRIAL VERIFICATION (INDIA) PRIVATE LIMITED	Director	26/08/1996	26/08/1996	1/4/2009	Active	NO
2	U65990GJ1991PLC064603	ADITYA BIRLA FINANCE LIMITED	Director	15/03/2001	15/03/2001	-	Active	NO
3	U65990MH1993PLC072800	BRICS SECURITIES LIMITED	Director	17/12/2004	17/12/2004	-	Active	NO
4	L29299MH1987PLC045446	RELIANCE MEDIAWORKS LIMITED	Director	25/10/2007	13/09/2007	9/6/2010	Active	NO
5	L64200MH2005PLC158355	RELIANCE BROADCAST NETWORK LIMITED	Director	31/08/2010	30/06/2009	-	Active	NO
6	U74900MH2010PTC205950	RPOWER TRUSTEE COMPANY PRIVATE LIMITED	Director	26/07/2010	26/07/2010	12/11/2010	Active	NO

Name :

Mr. Ajay Srinivasan

Designation :

Director

Address :

91/101, Narain Terraces, 7th and 8th Floor, Union Park Road, Pali Hill, Bandra (W), Mumbai - 400050, Maharashtra, India

Date of Birth/Age :

02.11.1963

Date of Appointment :

31.07.2007

DIN :

00121181

Other Directorship :

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	U99999DL1993PLC054135	ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LIMITED	Nominee director	3/3/1998	3/3/1998	18/07/2007	Active	NO
2	U61190GJ1997PLC062406	ADITYA BIRLA MONEY MART LIMITED	Director	20/07/2009	31/07/2007	-	Active	NO
3	U65990GJ1991PLC064603	ADITYA BIRLA FINANCE LIMITED	Director	1/8/2008	31/07/2007	-	Active	NO
4	U99999MH2000PLC128110	BIRLA SUN LIFE INSURANCE COMPANY LIMITED	Director	1/7/2010	1/8/2007	-	Active	NO
5	U65991MH1994PLC080811	BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LIMITED	Director	24/05/2008	2/8/2007	-	Active	NO
6	U73100MH1999PTC118379	ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED	Director	30/08/2007	30/08/2007	-	Active	NO
7	U65999MH2008PLC183695	ADITYA BIRLA FINANCIAL SHARED SERVICES LIMITED	Director	19/06/2008	19/06/2008	20/10/2008	Active	NO
8	U74140MH2008PTC179360	ADITYA BIRLA CAPITAL ADVISORS PRIVATE LIMITED	Director	14/09/2009	21/11/2008	-	Active	NO
9	U91990MH2005NPL150661	FINANCIAL PLANNING STANDARDS BOARD INDIA	Director	11/9/2009	11/9/2009	1/4/2011	Active	NO
10	U67190MH2008PTC179283	ADITYA BIRLA SECURITIES PRIVATE LIMITED	Director	24/09/2010	31/07/2010	-	Active	NO

Name :

Mr. Jitender Balakrishnan

Designation :

Director

Address :

208-Tower-2, Casa Grande, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India

Date of Birth/Age :

08.05.1949

Date of Appointment :

20.07.2010

DIN :

00028320

Other Directorship :

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	U65999DL2000PLC103177	IDBI HOMEFINANCE LIMITED	Nominee director	11/9/2003	11/9/2003	17/08/2007	Amalgamated	NO
2	L65190MH2004GOI148838	IDBI Bank Limited	Whole-time director	14/03/2006	14/03/2006	31/05/2009	Active	NO
3	U65990MH1993GOI075578	IDBI CAPITAL MARKET SERVICES LIMITED	Director	5/9/2008	13/09/2007	2/8/2010	Active	NO
4	U72200MH2000GOI124665	IDBI INTECH LIMITED	Director appointed in casual vacancy	28/09/2007	28/09/2007	25/06/2010	Active	NO
5	U66030KA2007PLC043362	BHARTI AXA GENERAL INSURANCE COMPANY LIMITED	Director	21/06/2010	1/6/2010	-	Active	NO
6	U66010MH2005PLC157108	BHARTI AXA LIFE INSURANCE COMPANY LIMITED	Director	25/06/2010	1/6/2010	-	Active	NO
7	L31400WB1986PLC091621	USHA MARTIN LIMITED	Director	27/07/2010	10/6/2010	-	Active	NO
8	U40101KA1986PLC007404	BHORUKA POWER CORPORATION LIMITED	Director	21/09/2010	22/06/2010	-	Active	NO
9	U65990GJ1991PLC064603	ADITYA BIRLA FINANCE LIMITED	Director	23/09/2011	20/07/2010	-	Active	NO
10	L25209UR1984PLC011596	POLYPLEX CORPORATION LIMITED	Director	25/09/2010	20/07/2010	-	Active	NO
11	L24117WB1962PLC025584	BINANI INDUSTRIES LIMITED	Director	27/06/2011	27/07/2010	-	Active	NO
12	L65999MH1986PLC147981	IL AND FS INVESTMENT MANAGERS LIMITED	Director	27/07/2011	30/07/2010	-	Active	NO
13	L27100MH1973PLC016617	SARDA ENERGY AND MINERALS LIMITED	Director	25/09/2010	30/07/2010	-	Active	NO
14	L17120MH1990PLC058361	S KUMARS NATIONWIDE LIMITED	Director appointed in casual vacancy	30/07/2010	30/07/2010	-	Active	NO
15	L24111UR1983PLC009097	INDIA GLYCOLS LIMITED	Director	27/09/2011	13/08/2010	-	Active	NO
16	U27100GJ1976FLC013787	ESSAR STEEL INDIA LIMITED	Director	30/09/2010	25/08/2010	-	Active	NO
17	U99999DL2001PLC175768	MAGUS ESTATES AND HOTELS LIMITED	Director	28/09/2010	3/9/2010	-	Active	NO
18	L24302RJ1979PLC001948	SHREE RAJASTHAN SYNTEX LIMITED	Director	19/09/2011	19/09/2011	-	Active	NO

Name :

Mr. Ashwani Kumar Puri

Designation :

Director

Address :

28/2 Friends Colony West, New Delhi 110065, India

Date of Birth/Age :

16.11.1956

Date of Appointment :

13.09.2010

DIN :

00160662

Other Directorship :

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	U74899WB2000PTC128352	PRICEWATERHOUSECOOPERS SECURITIES PRIVATE LIMITED	Director	30/03/2000	30/03/2000	31/03/2010	Active	NO
2	U74140WB1983PTC036093	PRICEWATERHOUSECOOPERS PRIVATE LIMITED	Director	1/4/2002	1/4/2002	31/03/2010	Active	NO
3	U65990GJ1991PLC064603	ADITYA BIRLA FINANCE LIMITED	Director	23/09/2011	13/09/2010	-	Active	NO
4	L67120WB1951PLC019430	JK TYRE AND INDUSTRIES LIMITED	Additional director	29/07/2011	29/07/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Muthiah Ganapathy
Designation :	Secretary
Address :	2, Roopashree CHS, Dr. Moose Road, Thane - 400602, Maharashtra, India
Date of Birth/Age :	17.11.1971
Date of Appointment :	11.03.2008
PAN :	AGUPG3565E
Name :	Mr. Krishna Gopal Ajmera
Designation :	Manager
Address :	13, Shivtirth Apartment, Kastur Park, Borivli (West), Mumbai - 400092, Maharashtra, India
Date of Birth/Age :	05.01.1953
Date of Appointment :	31.07.2007
PAN :	AAGPA5860L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2011

Names of Shareholders	No. of Shares [Equity]
Aditya Birla Financial Services Private Limited (ABFSPL), India	105964781
Aditya Birla Investment Limited, India	1
ABFSPL jointly with Aditya Birla Investment Limited, India	10
ABFSPL jointly with Mr. Devendra Bhandari	10
ABFSPL jointly with Mr. Sudhir Maheshwari	10
ABFSPL jointly with Mr. Anupam Gupta	10
ABFSPL jointly with Mr. Manoj Shah	10
ABFSPL jointly with Mr. S S Pareekh	10
Total	105964842
* Aditya Birla Financial Services Private Limited (ABFSPL), India	No. of Shares [Preference]
* Aditya Birla Financial Services Private Limited (ABFSPL), India	25000000
* Shareholders bearing coupon rate of 7% and 7.5% have agreed to the revised coupon rate of 0.01% Compulsorily Convertible Cumulative Preference Shares with effect from 1st April, 2011 .	50000000
Madura Garments Lifestyle Retail Company Limited, India	300000000
Total	375000000

As on 23.09.2011

Equity Share Break Up Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject offers specialized solutions in areas of Capital Markets, Corporate Finance and Project Finance.
Products :	Collateral Finance Trade Finance

GENERAL INFORMATION

No. of Employees :

Information Declined by Management

Bankers :

Not Available

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Cash Credits From the Banks	530.954	450.000
Total	530.954	450.000
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Unsecured Redeemable Non-convertible Debentures (repayable within one year Rs.Nil)	0.000	560.000
Commercial Papers {(Maximum amount due Rs.23645.000 millions During the year), (repayable within one year Rs.13359.722 millions) }	13359.723	5700.937
Inter Corporate Borrowings (Repayable within one year Rs.1483.499 millions)	1483.500	1150.000
Due to Others (repayable within one year Rs.4.696 millions)	4.696	10.611
Total	14847.919	7421.548

Banking Relations :	--
Financial Institution :	IL and FS Trust Company Limited, Il and Fs Financial Centreplot No C22 G Block Bandra, Kurla Complex Bandra East, Mumbai - 400051, Maharashtra, India
Auditors :
Name :	S.V. Ghatalia and Associates Chartered Accountants
Address :	6^TH Floor, Express Towers, Nariman Point, Mumbai – 400021, Maharashtra, India
PAN :	AACFS6921Q
Holding Company :	Aditya Birla Financial Services Private Limited (ABFSPL) CIN : U67120GJ2007PTC058890
Subsidiary Companies :	Aditya Birla Securities Private Limited CIN : U67190MH2008PTC179283
Where Control Exist :	Aditya Birla Nuvo Limited
Fellow Subsidiaries :	Aditya Birla Customer Services Private Limited (ABCSPL) Aditya Birla Trustee Company Private Limited (ABTCPL) Aditya Birla Financial Shared Services Limited (ABFSSL) Aditya Birla Money Limited (ABML) Aditya Birla Commodities Broking Limited (ABCBL) Aditya Birla Insurance Brokers Limited (ABIBL) Aditya Birla Securities Private Limited (ABSPL) Aditya Birla Money Mart Limited (ABMML) Aditya Birla Money Insurance Advisory Services Limited (ABMIASL) Birla Sun Life Insurance Company Limited (BSLICL) ABNL Investment Limited (formerly known as Laxminarayan Investment Limited) Madura Garments Lifestyle Retail Company Limited (MGLRCL) LIL Investment Limited (w.e.f July 27, 2009 and on becoming Associates, ceased to be subsidiary w.e.f. November27,2009 again become subsidiary w.e.f. June 30, 2010) Aditya Birla Minacs IT Services Limited (ABMITSL) (formerly known as PSI Data Systems Limited) Aditya Birla Minacs Technologies Limited (formerly known as Birla Technologies Limited)

CAPITAL STRUCTURE

As on 23.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000,000	Equity Shares	Rs.10/- each	Rs.5000.000 millions
500,000,000	Preference Shares	Rs.10/- each	Rs.5000.000 millions
	Total		Rs.10000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
105,964,842	Equity Shares	Rs.10/- each	Rs.1059.648 millions
375,000,000	Preference Shares	Rs.10/- each	Rs.3750.000 millions
	Total		Rs.4809.648 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000,000	Equity Shares	Rs.10/- each	Rs.5000.000 millions
500,000,000	Preference Shares	Rs.10/- each	Rs.5000.000 millions
	Total		Rs.10000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
105,964,842	Equity Shares {of the above, 6,998,702 shares were allotted as fully paid-up pursuant to a contract for consideration other than cash.} "105,964,841 (105,964,841) shares held by the holding company i.e. Aditya Birla Financial Services Private Limited and one share held by Fellow subsidiary ABNL Investment Limited“, previous year share held by holding company ie Aditya Birla Financial Private Limited 30,964,781, ultimate holding company ie Aditya Birla Nuvo Limited 75,000,060 and one share held by Fellow subsidiary ie ABNL Investment Limited "	Rs.10/- each	Rs.1059.648 millions
50,000,000	7% Compulsory Convertible Cumulative Preference Shares of the above 25,000,000 (Nil), shares are held by the holding company i.e. Aditya Birla Financial Service Private Limited., previous year 25,000,000 share held by ultimate holding company ie Aditya Birla Nuvo Limited.	Rs.10/- each	Rs. 500.000 millions
25,000,000	7.5% Compulsory Convertible Cumulative Preference Share of the above 25,000,000 (Nil), shares are held by the holding company i.e. Aditya Birla Financial Services Private Limited , previous year 25,000,000 share held by ultimate holding company ie Aditya Birla Nuvo Limited	Rs.10/- each	Rs.250.000 millions
300,000,000	0.01% Compulsory Convertible Cumulative Preference Share [Partly Paid up]	Rs.7.50/- each	Rs.2250.000 millions
	Total		Rs.4059.648 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		4059.648	1809.648	1809.648
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		911.907	539.870	302.549
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4971.555	2349.518	2112.197
LOAN FUNDS
1] Secured Loans		530.954	450.000	0.000
2] Unsecured Loans		14847.919	7421.548	7777.446
TOTAL BORROWING		15378.873	7871.548	7777.446
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		20350.428	10221.066	9889.643
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.887	37.402	24.746
Capital work-in-progress		0.863	0.000	1.457
INVESTMENT		1848.149	300.075	3.115
DEFERREX TAX ASSETS		23.122	4.204	21.789
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1645.978	969.198	3500.000
	Sundry Debtors	0.635	1.660	0.414
	Cash & Bank Balances	57.135	105.360	51.287
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16980.496	8978.742	6518.255
Total Current Assets		18684.244	10054.960	10069.956
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	120.085	70.080	35.520
	Other Current Liabilities	45.506	22.478	17.718
	Provisions	75.246	83.017	178.182
Total Current Liabilities		240.837	175.575	231.420
Net Current Assets		18443.407	9879.385	9838.536
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20350.428	10221.066	9889.643

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income from Operations
		Capital Market Activity	1325.415	599.228	947.940
		Corporate Finance Activity	283.557	102.698	228.185
		Treasury Operations	323.632	690.433	229.551
		Interest income on Rent Securitization	0.000	3.235	4.653
		Syndication and Other Fee Income	39.676	23.174	22.221
		Other Income	6.471	7.338	4.228
		TOTAL (A)	1978.751	1426.106	1436.778
Less	EXPENSES
		Personnel Cost	172.379	109.423	75.526
		Administrative and Other Expenses	192.870	123.632	59.339
		Bad debts and Provision for Non-Performing Assets(Net)	[3.912]	[51.315]	61.832
		General Provision on Standard Assets	50.439	0.000	0.000
		TOTAL (B)	411.776	181.740	196.697
	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1566.975	1244.366	1240.081
Less	FINANCIAL EXPENSES (D)		994.249	773.069	792.067
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		572.726	471.297	448.014
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.129	14.551	11.437
	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		553.597	456.746	436.577
Less	TAX (H)		181.407	156.541	140.406
	PROFIT / [LOSS] AFTER TAX (G-H) (I)		372.190	300.205	296.171
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		372.869	196.549	147.236
Less	APPROPRIATIONS
		Special Reserve	75.000	61.000	60.000
		Dividend on Compulsorily Convertible Preference Shares	0.131	53.750	53.750
		Interim Dividend on Equity Shares	-	-	105.965
		Corporate Dividend Tax	0.021	9.135	27.143
	BALANCE CARRIED TO THE B/S		669.907	372.869	196.549
	Earnings/[Loss] Per Share (Rs.)		3.51	2.24	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	18.81	21.05	20.61
Return on Total Assets (PBT/Total Assets}	(%)	2.96	4.52	4.32
Return on Investment (ROI) (PBT/Networth)		0.11	0.19	0.21
Debt Equity Ratio (Total Liability/Networth)		3.14	3.42	3.79
Current Ratio (Current Asset/Current Liability)		77.58	57.27	43.51

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
-Due to Micro and Small Enterprises	-	-	-
-Other than Micro and Small Enterprises	120.085	70.080	35.520
Total	120.085	70.080	35.520

OPERATIONAL REVIEW:

During the year, the Total Income earned by the Company was Rs.1978.600 Millions as against Rs.1426.100 Millions in the previous year. The Total Expenses incurred during the year increased to Rs.1401.500 Millions from Rs.954.800 Millions in the previous year mainly because of induction of senior management personnel, increase in traveling and conveyance, legal and professional charges, rating and certification expenses etc.

The financial year 2010-11 (FY11) was an important year for the Company. The share capital of the Company was increased from Rs.1809.600 millions to Rs.4059.600 millions by issuance of 300 Millions 0.01% Compulsorily Convertible Preference Shares of Rs.10 each, Rs.7.50 per share partly paid up. Subsequent to this the credit rating for the short term debt programme too was enhanced from Rs.11850 millions to Rs.25000 millions. The company has got a rating of [ICRA] A1+ from ICRA Ltd (ICRA), the highest rating for short term debt and [ICRA] AA (Stable) rating for its long term debt program which states high degree of safety.

The Capital Market (CMG) business had a strong year. The portfolio of the business grew by 100% to Rs.14050 Millions from Rs.7070 Millions in the previous year.

The Corporate Finance (CFG) business too showed a strong 302% growth during the year with its disbursals aggregating to Rs.13320 Millions as against Rs.3310 Millions in the previous year. The business largely focused on penetrating the Aditya Birla Group’s ecosystem and lending to SME’s and Mid-Corporate.

Treasury

The year saw one of the longest stretches of liquidity tightness with interest rates having an upward trend from May 2010. RBI revised its guidelines on issuance of short-term debentures, resulting in an increase in the overall cost of funds.

Despite these market conditions, the Company ensured availability of funds to its customers, albeit at a higher cost. The cost of borrowing of the Company has been gradually increasing every month for the past 6 months.

BUSINESS OUTLOOK:

The Indian economy has moved to a higher growth phase. As the funding needs of their target customers increase, they expect to be able to meet these. They see the increase in their loan against securities book matching the growing needs of promoters to raise money against their shareholding at one end and growing on the other hand as a result of the expected buoyancy in the Equity markets.

Their SME Funding book will broadly benefit from the growth in economic activity and their ability to provide customized solutions to their customers. Overall, they will continue to explore opportunities to grow their book in line with their risk taking appetite.

VARIATION OF RIGHTS OF PREFERENCE SHAREHOLDERS

The members of the Company at the Extraordinary General Meeting held on 27th October, 2007, had passed a resolution for issue of Compulsory Convertible Cumulative Preference Shares (CCPS) and authorized Board of Directors to modify the rights and terms in accordance with Articles of Association.

The Board has decided that rights of the Preference shareholders carrying coupon rate of 7% and 7.5% be varied, whereby the Preference shareholders waive off their rights to entitlement of dividend for the year 2010-11 and consent to the coupon rate of 0.01% from the FY 2011-12.

The Shareholders of Preference Shares carrying coupon rate of 7% and 7.5%, have vide their letter dated 26th July, 2011 consented to vary the rights as aforesaid.

Contingent Liabilities

Contingent Liabilities not provided for as on March 31, 2011:

(a) Disputed Income tax Liability Rs. 9.334 millions (Previous year Rs.7.303 million).

(b) Claims against the company not acknowledge as debts Rs.51.200 millions (Previous year Nil)

(c) Liabilities for pro-rata refund on insurance claim to the insurance company arising as a result of any part of outstanding debt not recognized in the final judgement, is not ascertainable as the legal matter for recovery of such amounts is still under process.

Bankers Charges Report as per Registry

Corporate identity number of the company	U65990GJ1991PLC064603
Name of the company	ADITYA BIRLA FINANCE LIMITED
Address of the registered office or of the principal place of business in India of the company	Indian Rayon Compound, Veraval – 362266, Gujarat, India
This form is for	Creation of charge
Type of charge	Others – All receivables as per agreement
Particular of charge holder	IL and FS Trust Company Limited, Il and Fs Financial Centre Plot No C22 G Block Bandra, Kurla Complex Bandra East, Mumbai - 400051, Maharashtra, India Email : itclroc@ilfsindia.com
Nature of instrument creating charge	Security trustee agreement cum deed of hypothecation
Date of instrument Creating the charge	25.02.2011
Amount secured by the charge	Rs.40.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - as agreed between the company and the respective lenders Terms of Repayment - as agreed between the company and the respective lenders Margin - as agreed between the company and the respective lenders Extent and Operation of the charge - The Borrower declares, undertakes, represents and warrants to the Security Trustee and hypothecates, assures and charges in favour of the Security Trustee as security, upon trust and for the benefit of the lenders all the receivables of the Borrower arising out of its business, from senior and junior pass through certificates, all other book debts and the current assets as may be identified by the Borrower or the Trustee Others - the currents assets as may be identified by the Borrower from time to time and accepted by the Security Trustee
Short particulars of the property or asset(s) charged (including complete address and location of the property)	all receivables of the borrower arising out of the business all other book debts, receivables from senior and junior pass through certificates in which the borrower has invested such other current assets as may be identified by the borrower from time to time and accepted by the security trustee but excluding any specific receivables in respect of which lien (undertaking to create charge) or a mortgage or charge or other encumbrance has been created to secure borrowings of any nature including in case of the issues of debentures, inter-corporate deposits term loans, working capital demand loans, cash credit and other fund based and non-fund based credit facility/(ies)

FIXED ASSETS :

§ Leasehold Improvements

§ Computer

§ Software

§ Plant and Machinery

§ Furniture and Fixtures

§ Office Equipments

§ Vehicles

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.50.28
UK Pound	1	Rs.77.60
Euro	1	Rs.64.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.