MIRA INFORM REPORT

Report Date :

05.03.2012

IDENTIFICATION DETAILS

Name :	TVS SRICHAKRA LIMITED
Registered Office :	TVS Building, 7-B, West Veli Street, Madurai – 625 001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.06.1982
Com. Reg. No.:	18-009414
Capital Investment / Paid-up Capital :	Rs.76.570 Millions
CIN No.: [Company Identification No.]	L25111TN1982PLC009414
TAN No.: [Tax Deduction & Collection Account No.]	MRIS00086C
Legal Form :	Public Limited Liability Company. The company shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of Two and Three Wheeler Tyres.
No. of Employees :	1,648 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

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

Maximum Credit Limit :	USD 4500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed 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 normal for business dealings at usual trade terms and condition.

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 :	TVS Building, 7-B, West Veli Street, Madurai – 625 001, Tamilnadu, India
Tel. No.:	91-452-2420461/ 462/ 464/ 465
Fax No.:	91-452-2420266
E-Mail :	secretarial@tvstyres.com sundarpk@tvstyres.com ps@tvstyres.com
Website :	http://www.tvstyres.com
Administrative Office :	10, Jawahar Road, Madurai-625002 Tamilnadu, India
E-Mail :	investorgrievances@tvstyres.com demat@tvstyres.com
Factory 1 :	Vellaripatti Village, Melur Taluk, Madurai District- 625122 Tamilnadu, India
Factory 2 :	Narasingampatti Village, Therkutheru, Melur Taluk, Madurai District-625122 Tamilnadu, India
Factory 3 :	Plot No. 7, Sector 1, Integrated Industrial Estate, Sidcul, Pant Nagar-263153, Rudrapur, Tehsil-Kichha, District Udham Singh Nagar, Uttrakhand, India.

DIRECTORS

As on 31.03.2011

Name :	Mr. S. Narayanan
Designation :	Chairman
Name :	Mr. R. Naresh
Designation :	Executive Vice Chairman
Name :	Ms. Shobhana Ramachandhran
Designation :	Managing Director
Name :	Mr. M. S. Viraraghavan
Designation :	Director
Name :	Mr. N. H. Atthreya
Designation :	Director
Name :	Mr. Sitaram Rao Valluri
Designation :	Director
Name :	Mr. P. Vijayaraghavan
Designation :	Director
Name :	H. Janardana Iyer
Designation :	Director

KEY EXECUTIVES

Audit Committee :	Mr. M. S. Viraraghavan Chairman Mr. N. H. Atthreya Mr. Sitaram Rao Valluri
Shareholders/Investors Committee	Mr. S. Narayanan Chairman Mr. Shobhana Ramachandran Mr. P. Vijayaraghavan
Name :	Mr. L.R. Subramanian
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	430,101	5.62
Bodies Corporate	2,994,544	39.11
Sub Total	3,424,554	44.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3,424,554	44.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	650	0.01
Financial Institutions / Banks	5,580	0.07
Central Government / State Government(s)	94	--
Foreign Institutional Investors	4,393	0.06
Sub Total	10,717	0.14
(2) Non-Institutions
Bodies Corporate	516,089	6.74
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	2,775,532	36.25
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	899,717	11.75
Any Others (Specify)	30,441	0.40
Clearing Members	29,841	0.39
Trusts	600	0.01
Sub Total	4,221,779	55.14
Total Public shareholding (B)	4,232,496	55.28
Total (A)+(B)	7,657,050	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	7,657,050	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Two and Three Wheeler Tyres.

Products :

Product Description	ITC Code No.
New Pneumatic Tyres of rubber	40.11
Inner Tubes of rubber	40.13
Phenolic Moulded Products	39.26

PRODUCTION STATUS (AS On 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Automotive Tyres	Nos (‘000)	33000	32953	15728
Automotive Tubes	Nos (‘000)	33000	30850	17345

GENERAL INFORMATION

No. of Employees :

1,648 (Approximately)

Bankers :

· State Bank of India, West Veli Street, Madurai- 625001, Tamilnadu, India

· HDFC Bank Limited, India

· Karur Vysya Bank, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans from Banks:
Working Capital Facilities	1506.695	1147.798
Term Loans:	`
State Bank of India	731.300	474.616
Karur Vysya Bank	150.000	0.00
Others	169.583	121.209
Total	2557.578	1743.623
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
HP Finance	0.545	0.930
Total	0.545	0.930

Banking Relations :	--
Auditors :
Name :	Sundaram and Srinivasan Chartered Accountants
Address :	New No. 250, P T Rajan Road, Madurai – 625 014 Tamilnadu, India
Associates :	T V Sundram Iyengar and Sons Limited TVS Telecom Components Limited ZF Electronics TVS (India) Private Limited Van Leeuwen Tyres and Wheels B.V., Holland
Subsidiaries :	TVS Srichakra Investments Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7657050	Equity Shares	Rs.10/- each	Rs.76.570 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		76.570	76.570	76.570
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1061.799	781.720	573.123
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1138.369	858.290	649.693
LOAN FUNDS
1] Secured Loans		2557.578	1743.623	1570.855
2] Unsecured Loans		0.545	0.930	1.314
TOTAL BORROWING		2558.123	1744.553	1572.169
DEFERRED TAX LIABILITIES		99.742	74.742	74.203
TOTAL		3796.234	2677.585	2296.065
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1545.566	1121.406	715.272
Capital work-in-progress		103.921	32.408	7.657
INVESTMENT		26.104	26.104	12.450
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2643.349	1554.359	653.930
	Sundry Debtors	1739.406	1189.360	1065.866
	Cash & Bank Balances	51.325	85.835	132.601
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	374.704	324.078	273.285
Total Current Assets		4808.784	3153.632	2125.682
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2540.515	1627.813	502.158
	Other Current Liabilities	5.692	7.343	3.683
	Provisions	141.934	20.809	59.155
Total Current Liabilities		2688.141	1655.965	564.996
Net Current Assets		2120.643	1497.667	1560.686
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3796.234	2677.585	2296.065

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	10853.129	7007.054	5763.507
		Other Income	119.446	56.849	14.309
		TOTAL (A)	10972.575	7063.903	5777.816
Less	EXPENSES
		Material Consumed	7467.609	4174.310	3961.061
		Purchase of traded goods	7.732	5.302	6.351
		Other Expenses	3041.081	2040.369	1457.702
		Increase and Decrease in Stock	(570.220)	136.182	(63.543)
		TOTAL (B)	9946.202	6356.163	5361.571
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1026.373	707.740	416.245
Less	FINANCIAL EXPENSES (D)		296.483	156.132	185.908
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		729.890	551.608	230.337
Less/ Add	DEPRECIATION/ AMORTISATION (F)		158.202	117.889	98.766
	PROFIT BEFORE TAX (E-F) (G)		571.688	433.719	131.571
Less	TAX (H)		180.000	135.539	41.500
	PROFIT AFTER TAX (G-H) (I)		391.688	298.180	90.071
	INCOME TAX RELATING TO PRIOR YEARS		0.000	0.000	(0.394)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		626.247	447.650	398.828
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	30.000	9.500
		Proposed Dividend	95.712	0.000	26.800
		Interim Dividend Paid	0.000	76.570	0.000
		Tax on Interim Divided	0.000	13.013	0.000
		Tax on Distribution of Dividend	15.897	0.000	4.555
	BALANCE CARRIED TO THE B/S		866.326	626.247	447.650
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1160.548	945.325	957.853
	TOTAL EARNINGS		1160.548	945.325	957.853
	IMPORTS
		Raw Materials	1769.469	1019.794	1098.574
		Stores & Spares	0.549	0.758	9.240
		Capital Goods	78.650	96.178	32.884
	TOTAL IMPORTS		1848.668	1116.730	1140.698
	Earnings Per Share (Rs.)		51.15	38.94	40.11

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^ST Quarter	2^nd Quarter	3^rd Quarter
Net Sales	3509.280	3356.770	3494.510
Total Expenditure	3163.560	3209.590	3229.950
PBIDT (Excl OI)	345.720	347.180	264.560
Operating Profit	345.720	347.180	264.560
Interest	114.530	126.630	129.810
PBDT	231.190	220.550	134.750
Depreciation	56.020	60.970	42.170
Profit Before Tax	175.170	159.580	92.580
Tax	54.130	47.870	26.200
Profit After Tax	121.040	111.700	66.380
Net Profit	121.040	111.700	66.380

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.57	4.22	1.56
Net Profit Margin (PBT/Sales)	(%)	5.27	6.19	2.28
Return on Total Assets (PBT/Total Assets}	(%)	9.00	10.15	4.63
Return on Investment (ROI) (PBT/Networth)		0.50	0.51	0.20
Debt Equity Ratio (Total Liability/Networth)		4.61	3.96	3.29
Current Ratio (Current Asset/Current Liability)		1.79	1.90	3.76

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The Company recorded total Net Sales and Other Income of Rs.10970.00 Millions for the year ended 31st March, 2011 as against Rs.7060.000 Millions achieved during the previous year. The export sale was Rs.1170.000 Millions as against Rs.950.000 Millions in the previous year. Cost escalation pressures were countered by many cost cutting measures undertaken by the Company resulting in growth in profit.

DOMESTIC MARKET

The two and three wheeler industry had a growth of above 20% for the second consecutive year. This positive trend helped the Company to achieve a value growth of over 50% during the year. This resulted in the Company crossing the Rs.10000.000 Millions turnover during the year 2010-11.

During the year, the Company continued its intensive Brand Building exercise, which helped in strengthening the quality of our dealer net work. The Company plans to focus on Brand Building in the coming year also and this augurs well for achieving the ambitious growth in After Market segment during the year 2011-12.

The Company had the distinction of being associated with all the leading vehicle manufacturers in their new model development. This has significantly improved our position in the market especially for Motorcycle tubeless tyres and Scooter tyres, in particular.

OVERSEAS MARKET

The export business has grown from Rs.950.000 Millions to Rs.1170.000 Millions in 2010-11. The export market is bouncing back and has reached the pre-recession days in volume.

The Company has seen an increase in off-take from existing customers and have introduced customers in USA and other Countries.

The Company is planning an aggressive turnover growth in export market in the year 2011 – 12 primarily from American markets. The Company is also focusing the two wheeler tyre business in countries like South America

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

· Industry Structure and Development

Automobile Industry in India happens to be the ninth largest in the world. Two and Three wheelers account for nearly 80% of the Automobile Industry in numbers.

The Company is focusing on two and three wheeler segments apart from presence in off the road tyres segment.

Two and Three Wheeler vehicle production has grown by around 28% during the year 2010-11 over 2009-

10. This coupled with the GDP growth of 8.6% and General Industrial Production growth at 8.3% has resulted in increased demand for these tyres in the Indian Market. In view of this, the Company was able to record a better performance in 2010-11. The International Market has bounced back after the severe global recession and shown a growth of 4%.

Natural Rubber price has shown a steep increase during the year which definitely had an impact in the over all business.

Power shortage was an area of concern during the year 2010-11, due to which, the Company was forced to look out for alternate source of power resulting in increased cost of production.

· Performance of the Company

Market:

Original Equipment Manufacturers:

The Company has grown in this segment by both volume and value and the growth percentage was more than the industry growth. The Company was able to achieve this by increasing the Share of Business with the Original Equipment Manufacturers (OEMs). There is further scope for increasing the Share of Business, which will be taken up in future.

After Market:

The Company could not grow as per the plan in the After Market due to market conditions and demand supply gap in the first half of 2010-11. The Company continued its massive Brand Building Exercise campaign through TV Commercials apart from greater thrust on Below the Line activities during the year 2010- 11, the results of hich will be seen in the near future.

Export:

Exports grew by 15% in volume in 2010-11 over 2009- 10, gradually getting back the pre-recession days.

The Company has signed up with new customers in Europe and have planned for growth in volume in 2011-12 and will be focusing the USA market.

Company is planning the development of radial rear tractor tyres. The Company has also identified new markets for our two wheeler tyre for export and expects to grow this as well.

Manufacturing:

The Company sustained the best practices such as Total Productivity Management (TPM) and lean manufacturing in its manufacturing facilities. Continuous improvements are implemented to improve manufacturing quality and productivity in many of the manufacturing areas.

Cost Management:

The Company continues its rigorous focus on its costs through an effective cost management system. Maximizing export benefits, value engineering, reducing process scrap and operational efficiency projects are being pursued or cost reduction and also to counter cost escalation.

· Outlook

Market indications are that the industry will see a double digit growth in 2011-12 for the 3rd consecutive year. The Company will make all efforts to sustain and improve upon the Share of Business with major Original quipments, with a focus on increasing the volume of business from new Original Equipments. Concentration on New Product Development will give an impetus for achieving higher growth during the year 2011-12.

Various brand building activities including Below The Line activities undertaken by the Company during the year 2010-11 would augur well to increase the Company’s presence in the After Market. Increasing the Dealer network and improving the distribution channel would ensure sustaining and increasing the market share in this segment.

Adequate capital expenditure is planned for the year 2011-12 to support the above growth. The expenditure will be incurred on case to case basis.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2011

Rs. In Millions

Particulars	3 Months ended 30.09.2011 (Unaudited)	Year to date figures for the current period ended 30.09.2011 (Unaudited)
a) Net Sales / Income from Operations	3537.163	7006.942
b) Other Operating Income	19.612	59.115
Total	3556.775	7066.057
Expenditure
(a) (Increase)/decrease in Stock in Trade	66.127	(9.918)
(b) Consumption of Raw Materials	2361.381	4781.116
(c) Purchase of Traded Goods	--	--
(d) Employees Cost	226.107	459.777
(e) Depreciation	60.971	116.991
(f) Other Expenditure	555.980	1142.185
Total Expenditure	3270.566	6490.151
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	286.209	575.906
Other Income	--	--
Profit/(Loss) before Interest and Exceptional items	286.209	575.906
Interest	126.634	241.165
Profit / (Loss) after interest before Exceptional items	159.575	334.741
Exceptional Items	--	--
Profit / (Loss) From Ordinary activities before Tax	159.575	334.741
- Tax	47.873	101.999
Net Profit/(Loss) From Ordinary activities after Tax	111.702	232.742
Extraordinary Items	0.000	--
Net Profit/(Loss) for the period	111.702	232.742
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	76.570	76.570
Reserves (Excluding Revaluation Reserves)	--	--
Earnings per Share ( EPS) (a) Basic and Diluted EPS before Extraordinary Items for the period, for the year to date and for the previous year (Not to be annualised)	14.59	30.40
(b) Basic and Diluted EPS after Extraordinary Items for the period, for the year to date and for the previous year (Not to be annualised)	14.59	30.40
Public Share Holding
- Number of Shares	4243496	4243496
- Percentage of shareholding	55.42%	55.42%
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	Nil	Nil
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	Nil	Nil
- Percentage of shares(as a % of the total share capital of the company)	Nil	Nil
b) Non-encumbered
- Number of Shares	3413554	3413554
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%
- Percentage of Share (as a % of the total share capital of the company)	44.58%	44.58%

UNAUDITED STATEMENT OF ASSETS AND LIABILITIES

Rs. In Millions

Particulars	As on 30.9.2011 Unaudited
SHAREHOLDERS' FUNDS
(a) Capital	76.570
(b) Reserves and Surplus	1294.541
LOAN FUNDS	3853.018
DEFERRED TAX LIABILITY (Net)	143.258
TOTAL	5367.387
FIXED ASSETS	2528.859
INVESTMENTS	26.104
CURRENT ASSETS, LOANS AND ADVANCES
(a) Inventories	2528.859
(b) Sundry Debtors	2585.758
(c) Cash and Bank balances	110.792
(d) Other current assets	--
(e) Loans and Advances	614.902
(A)	5840.311
Less : Current Liabilities and Provisions
(a) Liabilities	2251.064
(b) Provisions	19.858
(B)	2270.922
Net Current Assets	3569.389
Miscellaneous Expenditure (Not written Off or adjusted)	--
Profit and Loss Account	--
TOTAL	5367.387

Note

1. Presently, the Company operates only in one segment.

2. Status of Investor Grievances for the quarter ended 30.09.2011: No. of Complaints pending as at 1.7.2011 - Nil; Received during the quarter - Nil; Disposed during the quarter - Nil; Lying unresolved as at 30.9.2011 – Nil

3. The above Unaudited Financial Results were reviewed by the Audit Committee, approved by the Board of Directors on 12th November,

4. The company has a wholly owned subsidiary. Since there are no business transactions during the quarter, the accounts of the subsidiary has not been consolidated.

5. Figures for the corresponding previous period have been recast / regrouped, wherever necessary, to make them comparable

FIXED ASSETS:

• Land – Leasehold
• Land – Freehold
• Buildings
• Plant and Machinery
• Electrical Installation
• Furnitures and Fixtures
• Vehicles

WEBSITE DETAILS:

BUSINESS DESCRIPTION

Subject is an India-based company. The Company manufactures a range of two and three wheeler tires and tubes for the domestic market and industrial pneumatic tires, farm and implements tires, skid steer tires, multipurpose tires and floatation tires for the export market. The Company’s products include pneumatic tires of rubber, inner tubes of rubber and phenolic molded products .It also focuses on off road tires segment. The Company has its manufacturing facility at Madurai in Tamil Nadu. It is spread over an area of 0.250 Million l square meters. As of march 31, 2011, it rolled out over 11 million tires per annum. The Company’s subsidiary includes subject. The Company’s exports its products to the United States, the United Kingdom, Germany, Italy, Spain, France, Benelux, Hungary, Turkey and Morocco. For the nine months ended 31 December 2010, TVS Srichakra Limited's revenues increased 56% to RS7.88B. Net income increased 25% to RS273.7M. Revenues reflect an increase in income from operations of the company. Net income was partially offset by an increase in consumption of raw materials, higher staff cost, a rise in interest expenses and an increase in other expenditure. The company is engaged in manufacturing of Tyre tubes and flaps.

BOARD OF DIRECTORS

S. Narayanan

Non-Executive Chairman of the Board

Mr. S. Narayanan is Non-Executive Chairman of the Board of the company . He has got more than five decades of experience in automobile industry, particularly on sale of spare parts and service. Mr. Narayanan is the Executive Director of Madras Auto Service, a division of T V Sundram Iyengar and Sons Limited. Mr. Narayanan in marketing and procurement functions, apart from general management. Mr. Narayanan is on the Board of The company Limited from 6.6.1983.

R. Naresh

Executive Vice Chairman of the Board

Mr. R. Naresh is Executive Vice Chairman of the Board of The company . He is holding the position of a Joint Managing Director in Sundaram Industries Limited.

N. H. Atthreya

Non-Executive Independent Director

Professor Dr. N. H. Atthreya is Non-Executive Independent Director of the company . He is a pioneer in Management Consultancy. He holds a Masters in Mathematics from the Madras University and a Doctorate in Business Administration from the Bombay University. A fellow of the Institute of Cost and Management Accountants, London, he holds post graduates diplomas in Industrial Administration, Methods Engineering and Organizational Psychology. He had his professional apprenticeship in management consultancy with Sir Walter Scott and his associates in Australia. Professor Atthreya is a Member of a number of national and international organizations. He is an adjunct professor at a U.S.A University and a visiting professor at a number of national professional institutes. Dr Atthreya has published 25 books on various aspects of management. Dr Atthreya, is the Hon. Director of the Indian Centre for Encouraging Excellence. Dr N H Atthreya is on the Board of Company from the inception. He is a member of the Audit Committee in F.D.C. Limited. Dr N H Atthreya is holding Directorship in M/s F.D.C. Limited.

H. Janardana Iyer

Non-Executive Independent Director

Mr. H. Janardana Iyer is Non-Executive Independent Director of the Company. He holds B.E., (Mechanical Engineering). He is having four decades of techno commercial experience in the field of Marketing Capital Equipments. His specializations have been in Technical Marketing of Earth Moving Equipments, Construction Equipments, Mining Equipments and Material Handling Equipments both in India as well as in International markets.

Shobhana Ramachandhran

Managing Director, Executive Director

Ms. Shobhana Ramachandhran is Managing Director, Executive Director of the company.

Sitaram Rao Valluri

Non-Executive Independent Director

Mr. Sitaram Rao Valluri is Non-Executive Independent Director of the Company He is a Doctorate in Aeronautics, and a Fellow Member in many of research institutes in India. Mr. Valluri has held several senior positions, in Government organizations was awarded "Padmasri" by the Government of India, in 1974. Mr. Valluri is on the Board of the Company from 23.2.1991 and has a special in technology development and general management. Mr. Valluri is not holding Directorship / Committee positions in any other Company

P. Vijayaraghavan

Non-Executive Director

Mr. P. Vijayaraghavan is Non-Executive Director of the company He holds a Masters in Science. He has three decades of experience in Rubber Industry. He headed functions for Manufacturing, R and D, Quality, Sales and Marketing and Exports of The company. He has travelled 40 Countries in building the Exports of the Company.

M. S. Viraraghavan

Non-Executive Independent Director

Mr. M.S. Viraraghavan is Non-Executive Independent Director of The Company.

Shobhana Ramachandhran

Managing Director, Executive Director

Ms. Shobhana Ramachandhran is Managing Director, Executive Director of The Company.

PRESS RELEASES:

The compnay gets nod for investments in UK subsidiary

14 November 2011

India, Nov. 14 -- The Company has received an approval for investment in equity shares of a subsidiary being formed in UK for acquisition of a distribution business in Europe. The board at its meeting held on November 12, 2011 has approved for the same The company is engaged in the business of tyre manufacturing. The company manufactures wide range of tyres for motorcycle, scooter, moped and three-wheelers. The company produces these tyres keeping in mind various features of different automobiles. Published by HT Syndication with permission from Accord Fintech. 

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

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	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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		58

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.