MIRA INFORM REPORT

Report Date :

16.07.2012

IDENTIFICATION DETAILS

Name :	BAJAJ AUTO LIMITED (w.e.f. 05.03.2008)
Formerly Known as:	BAJAJ HOLDINGS AND INVESTMENTS LIMITED
Registered Office :	Bajaj Auto Limited Complex, Mumbai-Pune Road, Akurdi, Pune-411035, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.04.2007
Com. Reg. No.:	25-130076
Capital Investment / Paid-up Capital :	Rs.2893.700 Millions
CIN No.: [Company Identification No.]	L65993PN2007PLC130076
TAN No.: [Tax Deduction & Collection Account No.]	PNEB05807E
PAN No.: [Permanent Account No.]	AADCB2923M
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturers and Exporter of Two and Three Wheelers.
No. of Employees :	2802 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well established and a reputed company having fine track. Financially company is performing good. Fundamentally seems to be strong. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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/ Head Office/ Factory 1 :	Bajaj Auto Limited Complex, Mumbai-Pune Road, Akurdi, Pune-411035, Maharashtra, India
Tel. No.:	91-20-27472851/ 27406603 / 27406063 / 27406281/ 27406137
Fax No.:	91-20-27407380 / 27407392
E-Mail :	vpbhand@bajajauto.co.in, investors@bajajauto.co.in jsridhar@bajajauto.co.in
Website :	http://www.bajajauto.com
Factory 2 :	Bajaj Nagar, Waluj, Aurangabad – 431 136, Maharashtra, India
Factory 3 :	MIDC, Plot No. A1, Mahalunge Village, Chakan Industrial Area, Chakan, Pune-410501, Maharashtra, India
Factory 4 :	Plot No. 2, Sector -10, IIE Pant Nagar, Udham Singh Nagar-263531, Uttarkhand, India

DIRECTORS

As on 31.03.2012

Name :	Mr. Rahul Bajaj
Designation :	Chairman
Name :	Mr. Madhur Bajaj
Designation :	Vice Chairman
Name :	Mr. Rajiv Bajaj
Designation :	Managing Director (Executive Director upto 31 March 2012; Non-Executive Director from 1 April 2012)
Name :	Mr. Sanjiv Bajaj
Designation :	Executive Director
Name :	Mr. Kantikumar R. Podar
Designation :	Director
Name :	Mr. Shekhar Bajaj
Designation :	Director
Name :	Mr. D.J. Balaji Rao
Designation :	Director
Name :	Mr. D.S. Mehta
Designation :	Director
Name :	Mr. J.N. Godrej
Designation :	Director
Name :	Mr. S.H. Khan
Designation :	Director
Name :	Ms. Suman Kriloskar
Designation :	Director
Name :	Mr. Naresh Chandra
Designation :	Director
Name :	Mr. Nanoo Pamnani
Designation :	Director
Name :	Mr. Manish Kejriwal
Designation :	Director
Name :	Mr. P. Murari
Designation :	Director
Name :	Mr. Niraj Bajaj
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Pradeep Shrivastava
Designation :	Chief Operating Officer
Name :	Mr. Abraham Joseph
Designation :	Chief Technology Officer
Name :	Mr. S Sridhar
Designation :	President (Motorcycle Business)
Name :	Mr. R C Maheshwari
Designation :	President (Commercial Vehicle Business)
Name :	Mr. Rakesh Sharma
Designation :	President (International Business)
Name :	Eric Vas
Designation :	President (New Projects)
Name :	Mr. K Srinivas
Designation :	President (Retail Finance)
Name :	Mr. Kevin D’sa
Designation :	President (Finance)
Name :	Mr. S Ravikumar
Designation :	Senior Vice President (Business Development and Assurance)
Name :	Mr. Amrut Rath
Designation :	Vice President (Human Resources)
Name :	Mr. C P Tripathi
Designation :	Vice President (CSR)
Name :	Mr. J Sridhar
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12,783,410	4.42
Bodies Corporate	131,949,922	45.62
Sub Total	144,733,332	50.04
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	144,733,332	50.04
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7,948,427	2.75
Financial Institutions / Banks	327,976	0.11
Insurance Companies	20,101,424	6.95
Foreign Institutional Investors	42,873,755	14.82
Sub Total	71,251,582	24.64
(2) Non-Institutions
Bodies Corporate	24,993,062	8.64
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	15,616,082	5.40
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	31,491,651	10.89
Any Others (Specify)	1,135,447	0.39
Non Resident Indians	1,133,765	0.39
Overseas Corporate Bodies	1,650	--
Foreign Nationals	32	--
Sub Total	73,236,242	25.32
Total Public shareholding (B)	144,487,824	49.96
Total (A)+(B)	289,221,156	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	145,864	--
Sub Total	145,864	--
Total (A)+(B)+(C)	289,367,020	--

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporter of Two and Three Wheelers.

Products :

ITC Code	Products Description
8711	Scooters, Auto-rickshaw, Motorcycles and Mopeds

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Two Wheelers and Three Wheelers upto 350 CC Engine Capacity [Including two wheelers c. k. d. packs 200000 nos.]	Nos.	1639350	5040000	3844438

Note:

(a) Licensed Capacity is stated as per the Original Licence held by the erstwhile Bajaj Auto Limited (pre-demerger). However, the Company’s products are exempt from licensing requirements under New Industrial Policy in terms of notification no. S.O. 477 (E) dated 25 July1991.

(b) As certified by the COO and being a technical matter, accepted by the Auditors as correct.

GENERAL INFORMATION

No. of Employees :

2802 [Approximately]

Bankers :

• Central Bank of India
• State Bank of India
• Citibank N.A.
• Standard Chartered Bank
• Bank of America
• ICICI Ban
• HDFC Bank

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
From Banks, against
Cash Credit facilities secured by hypothecation of Stores, Raw Materials , Finished Goods, Stock in Process and Book Debts of the company, book overdraft	0..000	235.300
Total	0.000	235.300
Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Sales tax deferral Liability/Loan, an incentive under Package Scheme of Incentives 1983,1988,1993 and 1998 - Interest free	974.800	1338.800
Foreign currency loan, from a bank as packing credit facility against exports	0.000	1343.100
Total	974.800	2681.900

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Cost Auditors :	A.P. Raman Cost Accountants
Holding company, subsidiaries and fellow subsidiary :	PT. Bajaj Auto Indonesia (98.94% shares held by Bajaj Auto Limited) Bajaj Auto International Holdings B V (Fully owned subsidiary) Amsterdam Netherlands (Fully owned subsidiary)
Associates, joint ventures and investing parties :	Bajaj Holdings and Investment Limited (Investing party - holds 31.49% shares of Bajaj Auto Limited)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.10/- each	Rs.3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
289367020	Equity Shares	Rs.10/- each	Rs.2893.700 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2893.700	2893.700	1446.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		57517.000	46208.500	27836.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		60410.700	49102.200	29283.400
LOAN FUNDS
1] Secured Loans		0.000	235.300	129.800
2] Unsecured Loans		974.800	2681.900	13256.000
TOTAL BORROWING		974.800	2917.200	13385.800
DEFERRED TAX LIABILITIES		484.400	297.100	16.900
TOTAL		61869.900	52316.500	42686.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15116.100	14827.100	14795.900
Capital work-in-progress		117.700	698.600	415.200
INVESTMENT		48828.100	47219.100	40215.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
				0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6785.300	5472.800	4462.100
	Sundry Debtors	4227.900	3598.900	2728.400
	Cash & Bank Balances	16538.300	2287.800	1014.100
	Other Current Assets	2970.200	6180.500	1059.700
	Loans & Advances	16227.100	12190.500	20745.200
Total Current Assets		46748.800	29730.500	30009.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20030.800	17892.600	15712.000
	Other Current Liabilities	7161.100	6708.200	4550.500
	Provisions	21748.900	15558.000	22487.200
Total Current Liabilities		48940.800	40158.800	42749.700
Net Current Assets		(2192.000)	(10428.300)	(12740.200)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		61869.900	52316.500	42686.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	188802.700	158968.200	115085.000
		Other Income	12567.500	10779.200	5349.800
		TOTAL (A)	201370.200	169747.400	120434.800
Less	EXPENSES
		Cost of raw material and components consumed	134455.400	113118.900	94899.200
		Purchases of traded goods	7511.500	5684.100
		(Increase)/decrease in inventories of finished goods, work-in-progress and traded goods	(941.500)	(827.900)
		Employee benefits expense	5401.100	4935.800
		Other expenses	12157.700	9525.800
		Expenses, included in above items, capitalized	(494.300)	(166.600)
		Exceptional items	1340.000	(7245.500)
		TOTAL (B)	159429.900	125024.600	94899.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41940.300	44722.800	25535.600
Less	FINANCIAL EXPENSES (D)		222.400	16.900	59.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41717.900	44705.900	25475.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1456.200	1228.400	1364.500
	PROFIT BEFORE TAX (E-F) (G)		40261.700	43477.500	24111.300
Less	TAX (H)		10221.200	10080.200	7075.000
	PROFIT AFTER TAX (G-H) (I)		30040.500	33397.300	17036.300
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of exports	64491.800	44504.500	32457.500
		F.O.B. Value of exports - goods traded in	0.000	0.000	0.700
		F.O.B. Value of exports to Nepal	3.400	0.000
		Forwarding charges exports recovered	1547.900	1013.000	179.700
		Interest	19.500	14.000	33.300
		Royalty	8.000	5.900	7.400
		Technical Know how	3.000	0.000	0.000
		Asset Disposal	0.700	1.200	0.000
		Other Earnings	58.900	21.500	10.900
	TOTAL EARNINGS		66133.200	45560.100	231.300
	IMPORTS
		Raw Materials	1157.000	1092.700	341.700
		Components	5312.800	4054.000	2456.100
		Machinery spares	92.000	68.300	51.400
		Capital goods	217.000	377.800	321.100
		Tools, stores, etc.	68.300	52.500	24.700
	TOTAL IMPORTS		6847.100	5645.300	3195.000
	Earnings Per Share (Rs.)		103.80	115.40	117.70

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.92	19.67	14.15
Net Profit Margin (PBT/Sales)	(%)	21.32	27.35	20.95
Return on Total Assets (PBT/Total Assets}	(%)	65.08	97.58	53.81
Return on Investment (ROI) (PBT/Networth)		0.67	0.89	0.82
Debt Equity Ratio (Total Liability/Networth)		0.83	0.88	1.92
Current Ratio (Current Asset/Current Liability)		0.96	0.74	0.70

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	No
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	No

MANAGEMENT DISCUSSION AND ANALYSIS

Performance Highlights for FY2012

· Bajaj Auto recorded its highest ever sales, exports and profits from operations

· Turnover crossed the Rs.200000.000 Millions mark

· Net sales and other operating income grew by 19% to Rs.198040.000 Millions

· Record sales of 4.35 million units — with over a million units being sold in each of the four quarters

· Exports performed very well — rising by 31% to 1.58 million units

· For the first time, the Company’s operating earnings before interest, taxes, depreciation and amortisation (EBITDA) crossed Rs.40000.000 Millions, a growth of 18% over previous year

· Operating EBITDA margin was 20.2% of net sales and other operating income – highest in the industry

· Profit before tax (PBT) and exceptional items was Rs.41600.000 Millions

· Profit after tax (PAT) but before exceptional items grew by 18% to Rs.30950.000 Millions

· Surplus cash and cash equivalents, as on 31 March 2012, stood at Rs.54510.000 Millions

Motorcycles

In FY2012, Bajaj Auto sold over 3.83 million motorcycles in India and abroad. In doing so, it grew sales by 13.2% over FY2011, which was lower than in the previous two years. However, as mentioned earlier, sales growth was muted for the industry as a whole, which grew by 13.7% versus over 24% in the last couple of years. Thus, despite lower growth, Bajaj Auto held on to a share of over 32%.

India

In India, the Company sold 2,566,757 motorcycles during FY2012. That was 6.3% higher than the sales in the previous year. As mentioned earlier, FY2012 has been a year of lower growth for the domestic economy, with almost all sectors reporting subdued numbers. Sale of motorcycles in India was no exception. After two good quarters, sales growth fell very sharply in Q3 FY2012 and Q4 FY2012, to eventually clock 11.9% in FY2012, versus 22.9% last year.

Both urban and rural markets were affected by high consumer interest rates, increasing petrol prices and overall inflation. Even the 11.9% growth was severely skewed across quarters as well as segments. Sales of models belonging to the upper end Performance segment remained flat year-on-year. With a substantial proportion of Bajaj Auto’s business coming from the Performance segment, the Company’s sales growth by volume was more muted at 6%.

As evidenced in the first two months of ongoing financial year 2012-13, the growth continues to be muted. Industry growth for H1/FY2013 is expected to be in the range of 6-7% only. However, we expect an acceleration in growth in the second half of the fiscal year 2012-13.

The good news is that Bajaj Auto continues to dominate the performance segment. It sold 716,267 motorcycles in this segment in FY2012, with a market share of 44%. This, despite the segment being most hotly contested by every major two-wheeler company with a large number of models fighting for market share.

The Company’s key brand in this segment, Pulsar, is now into its 10th year. Pulsar is the only brand in the Performance segment whose cumulative sales have crossed the 5 million mark.

To increase the momentum in the Performance segment, Bajaj Auto unveiled the next generation Pulsar 200 NS in January 2012. Pulsar 200 NS is expected to re-define motorcycling just as the original Pulsars did in 2001.

To dominate the high end, Bajaj Auto launched the KTM Duke 200 in January 2012. Known for their legendary racing achievements, KTM is Europe’s second largest motorcycle manufacturer and dominates the off-road segment across the world. The first offering from the KTM stable in India, the Duke 200, is being retailed through dedicated KTM stores. Both the KTM Duke 200 and the Kawasaki Ninja 650R, launched earlier in June 2011, have received excellent response.

In FY2011-12, the Discover range in the mid-Commuter Deluxe segment has sold more than a lakh motorcycles every month, with annual sales of 1,279,619 bikes. Within Discover, contribution of the more powerful 125cc+ has nearly doubled to 53% of the brand

portfolio this year. With several product and marketing initiatives planned for FY2013, Discover is set for further growth.

Reflecting the changing dynamics in the motorcycle market during FY2012, the Commuter Standard segment grew the fastest. Bajaj Auto also clocked healthy growth here with an annual volume of 570,871 motorcycles — contributed largely by the Platina.

New dealers appointed last year now have started contributing significant volumes.

Exports

As in the earlier year, Bajaj Auto has done very well indeed. Exports grew by 30% to clock 1,267,648 motorcycles in FY2012 — or 69% of all motorcycle exports from India.

Within motorcycles, Boxer is the largest selling single brand in Africa. A new 150 cc version of it, the BM-150, has been received well and holds good growth prospects.

In Philippines, Boxer BM-150 and the Pulsar 135 were launched and were well received, with the latter helping Bajaj Auto to gain 34% market share in the Sports segment.

In Latin America, where Bajaj Auto sells 20% of its total motorcycle exports, the business has grown by 43% over the previous year. Market shares increased with the Pulsar Brand doing exceptionally well. High profile media events ensured excitement for the brand. Pulsar 135 ranks among the top selling motorcycle models in various Latin American markets.

Commercial Vehicles

India

Domestic sales for three-wheelers across the industry in FY2012 declined by 2.4% to 513,251 units. Conditions were not conducive to growth of business on account of (i) frequent fuel price hikes, (ii) significant hardening of interest rates, and (iii) political disturbances leading to a generally negative sentiment.

Bajaj Auto, too, saw a marginal fall in sales — by 1.3% to 202,979 vehicles. However, with a fall lower than the industry, the Company’s market share increased by 40 basis points from 39.1% in FY2011 to 39.5% in FY2012.

Bajaj Auto has taken a number of strategic initiatives during the year. These include:

· Network correction and expansion

· Concerted efforts to increase market share of diesel vehicles through new marketing initiatives

· Marketing efforts to promote alternate fuel vehicles in states like Gujarat (using CNG as the fuel),

· Andhra Pradesh (LPG) and Karnataka (LPG)

· Increase the share of public sector bank financing, thus making the vehicles more affordable

· Generating other financing options for customers

With no improvement in the economic environment and with high inflation and fuel cost, we expect the financial year 2012-13 to be a challenging year for the domestic CV industry.

Exports

In contrast, exports have done very well. As Table 2 shows, exports for three-wheelers as a whole grew by over 34% to 362,876 units in FY2012. Accounting for the lion’s share, Bajaj Auto’s exports grew by 35% to 312,176 three-wheelers.

In South Asia, the overwhelming market shares continued to be maintained in the markets of Srilanka and Bangladesh. Srilanka powered the growth of three-wheelers on the back of consumer demand for it as a personal usage vehicle.

Overall, exports of three-wheelers have been more than satisfactory.

International Business

During FY2012, Bajaj Auto exported 1,579,824 vehicles — a growth of 31% over the previous year. This was further sweetened with a 40% increase in the value of exports to USD 1.37 billion as against 975 million in the previous year.

At 41% of the total exports, Africa accounts for the largest share by volume, followed by Asia and Middle East at 40%. This is for both motorcycles and three-wheelers.

The business will continue on the strategy to focus on Brand building and at specific initiatives at territorial levels. Growth in exports for the Company for the financial year 2012-13 in both motorcycles and three wheeler segments is facing some headwinds due to international events such as substantial rise in import duty in Srilanka, trade restrictions imposed in Argentina, Dollar trade embargo in Iran. Given this challenging environment, managing growth with profitability and building a sustainable growth momentum will continue to be a key challenge for the forthcoming financial year.

R and D: New Products

Pulsar 200 NS

This completely new engine and vehicle platform was designed to carry forward the legacy of Pulsar, Bajaj Auto’s most successful brand in the past decade. It has been designed to further enhance and sharpen the sports image of the brand. The Pulsar 200 NS is powered by a high performance 4-valve liquid cooled engine with a triple spark ignition, delivers 23.5 Ps, with a six-speed gear box. It is equipped with state of the art features like perimeter frame with high lateral rigidity, low slung central muffler, Nitrox mono shock rear suspension — all of which add up to provide excellent handling and riding pleasure. The vehicle also has disc brakes for both front and rear wheels.

At the heart of the Pulsar 200 NS is its cutting-edge engine which sets new benchmarks in performance, emission and fuel efficiency. It takes technology altogether to another level with a SOHC 4-valve triple spark engine controlled by an advanced electronic control unit for absolutely unmatched performance. The Pulsar 200 NS has received rave reviews from all biking experts. Bajaj Auto expects it to take the biking world by storm in FY2013.

KTM 200

This model extends the new platform of engine and vehicle co-designed by Bajaj and KTM from 125 cc to 200 cc. Unlike KTM 125, this model is aimed for Indian as well as European markets. The KTM 200 is powered by a high performance 4-valve liquid cooled fuel injection engine delivering 25 Ps, with a six-speed gear box. It is equipped with state of the art features like radial callipers for front disc brakes, inverted front forks, cast aluminium swing arm and radial tyres at both front and back.

BM-150 and BM-100

BM-100 is the number one bike in Africa. BM-150, debuted in FY2012, expands the BM range bringing the power of 150 cc to the utility segment of the market. It has a sturdy frame and wide tyres designed to do duty under demanding usage and difficult terrain conditions. The BM-150 has been well received in the export markets.

The BM-100 complements the BM-150 to bring in features like electric start to enhance the utility of the product. Its strong frame and modern engine make it very robust in trying conditions. The BM-100 and BM-150 together address competitors in Africa in the 100 cc to 150 cc category.

Operations and Productivity

Bajaj Auto’s plants at Waluj, Chakan and Pantnagar have constantly made efforts to improve upon EBITDA margins by optimising resources and increasing efficiency. This has helped in taking effective business decisions and attaining higher levels of efficiency across all operations.

The Pantnagar plant produced 1.138 million vehicles in FY2012, versus 0.914 million a year earlier — a growth of 24.5%. It has further augmented its plant capacity to meet future demand.

Waluj achieved the landmark production of 2.24 million motorcycles and commercial vehicles. The plant, which is also the export hub for Bajaj Auto, has accomplished its stated target of exporting 1.31 million vehicles exports in this year — and is gearing up to export more motorcycles and commercial vehicles.

Chakan has used its core competencies in manufacturing high end sports bikes, such as the Duke-125 and the Duke-200.

Subsidiaries

Bajaj Auto International Holdings BV (BAIH BV)

Bajaj Auto International Holdings BV is a 100% Netherlands based subsidiary of Bajaj Auto set up in FY2008. BAIH BV invested € 98.4 million to acquire 24.45% equity stake in KTM Power Sports AG of Austria, Europe’s second largest sport motorcycle manufacturer.

As the co-operation between KTM and Bajaj Auto took root, further investments were made and as on date BAIH BV has invested € 189.9 million for a 47.18% ownership. BAIH BV is the second largest shareholder in KTM after Cross Industries who owns majority stake.

KTM is a sharply positioned brand that leads global off-road and motor-cross segments, with its products being distributed via 1,100 dealers across the world. It is also an outstanding brand that connotes top class products using best-in-class technology — and thus enjoys tremendous pricing power.

Realising back-end synergies in development and supply chain and preserving the brand focus in the front end is the foundation of co-operation between KTM and Bajaj Auto. Both partners are aligned to the above and to realising the market potential that such co-operation could open up.

In calendar year 2011, KTM strongly rode out of the downturn selling 81,200 motorcycles, achieving a turnover of € 526.8 million and a profit of €20.8 million.

The first jointly developed KTM Duke 125, manufactured at our Chakan plant, was launched in Europe in FY2011 and has become a market leader in its class.

The European racing legend also rode into India with its KTM Duke 200 motorcycle to a rousing response in Q4 FY2012.

PT Bajaj Indonesia (PT BAI)

PT BAI, incorporated in FY2007, is a 98.9% subsidiary of Bajaj Auto in Indonesia. The subsidiary assembles and markets Pulsars in Indonesia. It sold 23,337 motorcycles in FY2012 versus 21,586 in FY2011 — a growth of 8%. At PBT level, the loss for FY2012 was Rs.120.000 Millions as compared to a loss of Rs.110.000 Millions in FY2011.

Total investment in PT BAI stands at USD 29.5 million (Rs.1378.200 Millions).

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Claims against the Company not acknowledged as debts	4187.400	4224.900
Guarantees given by the Company to banks, on behalf of its subsidiary, PT Bajaj Auto Indonesia	254.400	231.900
Guarantees given by the Company to Housing Development Finance Corporation Limited - for loans to Employees	1.200	2.200
Excise and Customs demand - matters under dispute and Claims for refund of Excise Duty, if any, against Excise Duty Refund received in the earlier year	1817.800	1227.000
Income tax matters - Appeal by company	95.800	0.000
Sales Tax matters under dispute	3578.500	3284.100
Total	9935.100	8970.100

FIXED ASSETS:

· Land Leasehold

· Land Freehold

· Buildings

· Water pump

· Reservoirs and Mains

· Plant and Machinery

· Dies and Jigs

· Electric Installations

· Factory Equipments

· Furniture Fixtures

· Electric Fittings

· Vehicles and Aircraft

· Office Equipments

WEBSITE DETAILS:

PRESS RELEASE

BAJAJ RECORDS ITS HIGHEST EVER EXPORTS FOR ANY MAY

JUNE 4, 2012

May-12

Particulars	May-12	May-11	Growth %	Highlights
MOTORCYCLES	321,922	317,989	1	*Sri Lanka exports nil against a typical monthly average of 10,000 motorcycles & 3-wheelers each per month; expect recovery starting July.
COMMERCIAL VEHICLES	30,297	40,860	-26
TOTAL	352,219	358,849	-2	-
Exports out of the above	130,573	126,818	3	* Highest ever exports for any May.

YTD

Particulars	Apr-May 2012	Apr-May 2011	Growth %	Highlights
MOTORCYCLES	664,246	640,224	4	-
COMMERCIAL VEHICLES	69,563	85,934	-19	-
TOTAL	733,809	726,158	1	-
Exports out of the above	299,583	285,240	5	-

JUNE 2012 SALES

JULY 2, 2012

Jun-12

Particulars	Jun-12	Jun-11	Growth %	Highlights
MOTORCYCLES	318,377	322,827	-1	-
COMMERCIAL VEHICLES	26,785	43,830	-39	* 3-Wheeler sales to Sri Lanka & Egypt were disrupted; will normalise from July onwards.
TOTAL	345,162	366,657	-6	-
Exports out of the above	116,062	142,124	-18	-

YTD

Particulars	Apr-June 2012	Apr-June 2011	Growth %	Highlights
MOTORCYCLES	982,623	963,051	2	-
COMMERCIAL VEHICLES	96,348	129,764	-26	-
TOTAL	1,078,971	1,092,815	-1	-
Exports out of the above	415,645	427,364	-3	-

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.55.66
UK Pound	1	Rs.85.89
Euro	1	Rs.67.88

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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.