MIRA INFORM REPORT

Report Date :

15.03.2012

IDENTIFICATION DETAILS

Name :	MAHINDRA VEHICLE MANUFACTURERS LIMITED (w.e.f. 19.12.2008)
Formerly Known As :	MAHINDRA AUTOMOTIVE LIMITED
Registered Office :	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.05.2007
Com. Reg. No.:	11-171151
Capital Investment / Paid-up Capital :	Rs.9622.500 millions
CIN No.: [Company Identification No.]	U34100MH2007PLC171151
TAN No.: [Tax Deduction & Collection Account No.]	MUMM32438A
PAN No.: [Permanent Account No.]	AAFCM1217M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged in land development and grading activity.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 38414000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Mahindra and Mahindra Limited. It is an established company having satisfactory track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. In view of strong holding, 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 Office :	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-24931441
Fax No.:	91-22-24900833
E-Mail :	iyer.sangameshwar@mahindra.com maheshwari.sumeet@mahindra.com
Website :	http://www.mahindra.com
Factory :	MIDC Chakan, Pune – 410 501, Maharashtra, India

DIRECTORS

As on 01.08.2011

Name :

Dr. Pawan Kumar Ram Kishore Goenka

Designation :

Director

Address :

Flat No.602, 9, JVPD, Near UTI Bank Limited, 10^th Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

23.09.1954

Date of Appointment :

25.05.2007

DIN No.:

00254502

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	U72400MH1995PLC091404	Mahindra Engineering Services Limited	Director	30-04-03	30-04-03	-	Active	NO
2	U70100MH1999PTC122738	Sylvan Realty Private Limited	Director	26-05-03	26-05-03	-	Active	NO
3	U34100MH2005PTC153702	Mahindra Automobile Distributor Private Limited	Director	06-08-10	05-08-05	-	Active	NO
4	U51900MH1978PLC020222	Mahindra Intertrade Limited	Director	26-10-05	26-10-05	01-04-10	Active	NO
5	L65921MH1991PLC059642	Mahindra and Mahindra Financial Services Limited	Director	23-07-10	26-10-05	-	Active	NO
6	U63040MH1994PLC079098	Mahindra Navistar Automotives Limited	Director	14-07-06	11-01-06	-	Active	NO
7	U72200MH2000PTC173332	Plexion Technologies (India) Private Limited	Director	16-02-06	16-02-06	-	Amalgamated	NO
8	U64200MH1994PLC083996	Mahindra First Choice Wheels Limited	Director	23-08-06	29-04-06	-	Active	NO
9	U74999MH2007PTC167071	RN Automotive Private Limited	Nominee director	05-03-07	05-03-07	10-03-08	Strike off	NO
10	U34100MH2007PLC171151	Mahindra Vehicle Manufacturers Limited	Director	06-08-08	25-05-07	-	Active	NO
11	U35914MH2007PTC169753	Mahindra Navistar Engines Private Limited	Director	31-07-08	31-01-08	-	Active	NO
12	U35911MH2008PLC185462	Mahindra Two Wheelers Limited	Director	12-08-09	29-09-08	-	Active	NO
13	U34300DL1960NPL093535	Association of Indian Automobiles Manufacturers (Section-25 Company)	Director	28-08-09	28-08-09	-	Active	NO
14	L45202PB1974PLC003516	Swaraj Automotives Limited	Director	03-08-10	06-05-10	-	Active	NO
15	L50210PB1985PLC006473	Swaraj Engines Limited	Director	03-08-10	06-05-10	-	Active	NO
16	U34101KA1996PTC020195	Mahindra Reva Electric Vehicles Private Limited	Director	17-09-10	26-05-10	-	Active	NO

Name :

Mr. Louis Percival Pereira

Designation :

Director

Address :

504, Ashok Nagar, 1-B Wing, Vazira Naka, Borivali (West), Mumbai – 400 092, Maharashtra, India

Date of Birth/Age :

21.07.1948

Date of Appointment :

28.04.2011

DIN No.:

01329348

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U34100MH2007PLC171151	Mahindra Vehicle Manufacturers Limited	Director	01-08-11	25-05-07	Active	NO

Name :

Mr. Ajay Mansukhlal Choksey

Designation :

Director

Address :

Kanyakumari CHS, C-21, 2^nd Floor, A.K. Road, Plot C/5, 662, Andheri (East), Mumbai – 400 069, Maharashtra, India

Date of Birth/Age :

12.08.1952

Date of Appointment :

06.08.2008

DIN No.:

00204454

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U18101MH1995PLC095482	NBS International Limited	Director	01-11-00	01-11-00	Active	NO
2	U34100MH2007PLC171151	Mahindra Vehicle Manufacturers Limited	Director	20-08-09	06-08-08	Active	NO
3	U34100MH2005PTC153702	Mahindra Automobile Distributor Private Limited	Director	01-08-11	06-08-10	Active	NO

Name :

Mr. Sundaram Venkatraman

Designation :

Director

Address :

501, Vikas Classic, Building No.4, Behind Basant Theater, Dr. C. Gidwani Marg, Chembur, Mumbai – 400 074, Maharashtra, India

Date of Birth/Age :

07.05.1952

Date of Appointment :

19.11.2008

DIN No.:

00077193

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	U74999MH1995PLC093447	Tecpro Ashtech Limited	Director	05-12-02	05-12-02	05-01-08	Amalgamated	NO
2	U45201MH2001PLC131942	Mahindra Infrastructure Developers Limited	Nominee director	23-04-03	23-04-03	-	Active	NO
3	U74210MH1993PLC074723	Mahindra Consulting Engineers Limited	Nominee director	22-04-04	22-04-04	-	Active	NO
4	U45200MH1992PLC068846	Mahindra Construction Company Limited	Director	29-09-07	24-04-06	-	Active	NO
5	U45205MH1999PLC121235	Mahindra Water Utilities Limited	Director	18-09-07	10-10-06	-	Active	NO
6	U31200MH1954PLC019908	Mahindra Engineering and Chemical Products Limited	Director	27-08-07	16-01-07	-	Active	NO
7	U74140MH1992PLC066606	Mahindra and Mahindra Contech Limited	Director	05-09-08	30-05-08	-	Active	NO
8	U30007MH1991PLC064368	Bristlecone India Limited	Director	24-07-09	25-07-08	-	Active	NO
9	U34100MH2007PLC171151	Mahindra Vehicle Manufacturers Limited	Director	20-08-09	19-11-08	-	Active	NO
10	U92190MH2008PLC178894	Mumbai Mantra Media Limited	Director	08-09-09	03-02-09	-	Active	NO
11	U29268MH2010PTC198438	Mahindra Conveyor Systems Private Limited	Director	23-06-11	04-01-10	-	Active	NO
12	U34100MH2005PTC153702	Mahindra Automobile Distributor Private Limited	Director	01-08-11	31-08-10	-	Active	NO
13	U74999MH2011PTC212468	Mahindra BPO Services Private Limited	Director	18-01-11	18-01-11	-	Active	NO

Name :

Mr. Pravin Nagindas Shah

Designation :

Additional Director

Address :

41/42, Sailesh, Plot No.94A, Linking Road, TPS 2, Santacruz (West), Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

14.05.1954

Date of Appointment :

25.01.2012

DIN No.:

00056173

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51900MH1978PLC020222	Mahindra Intertrade Limited	Director	24-07-07	25-10-06	Active	NO
2	U34100MH2007PLC171151	Mahindra Vehicle Manufacturers Limited	Additional director	25-01-12	25-01-12	Active	NO
3	U34100MH2005PTC153702	Mahindra Automobile Distributor Private Limited	Additional director	25-01-12	25-01-12	Active	NO
4	U34101KA1996PTC020195	Mahindra Reva Electric Vehicles Private Limited	Additional director	28-01-12	28-01-12	Active	NO

KEY EXECUTIVES

Name :	Mr. Vijay Anant Dhongde
Designation :	Manager
Date of Appointment :	01.04.2011
PAN No.:	ADBPD7401N
Name :	Mr. L.P. Pereira
Designation :	Chief Executive Officer
Date of Birth/Age :	63 Years
Qualification :	B.E
Experience :	41 Years
Date of Appointment :	01.09.2008
Name :	Mr. Vijay Dhongde
Designation :	Chief Operating Officer
Date of Birth/Age :	58 Years
Qualification :	B.E
Experience :	35 Years
Date of Appointment :	01.04.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 01.08.2011

Names of Shareholders	No. of Shares
Mahindra and Mahindra Limited, India	962249994
Mahindra and Mahindra Limited, India Jointly with Anand G. Mahindra	1
Mahindra and Mahindra Limited, India Jointly with Bharat Doshi	1
Mahindra and Mahindra Limited, India Jointly with A.K. Nanda	1
Mahindra and Mahindra Limited, India Jointly with Pawan Kumar Goenka	1
Mahindra and Mahindra Limited, India Jointly with U.Y. Phadke	1
Mahindra and Mahindra Limited, India Jointly with Rajeev Dubey	1
Total	962250000

As on 01.08.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in land development and grading activity.

Products :

ITC Code	Product Description
8704	Light Transport Vehicle
8706	Medium and Heavy Commercial Vehicle

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit of measurement	Licensed Capacity Qty.	Installed Capacity Qty.	Actual Production Qty.
Motor Cars and Other Motor Vehicles	Nos.	275000	185000	39384
Heavy Motor Vehicles	Nos.	50000	32000	1545
Construction Equipments	Nos.	1000	900	25

Notes:

(1) The licensed capacity is as per the Industrial Entrepreneur Memorandum (IEM) filed with Ministry of Commerce and Industry, Secretariat for Industrial Assistance bearing acknowledgement no.:1169/SIA/IMO/2008 dated 20.01.2009.

(2) The installed capacity has been certified by the Management and relied upon by the auditors without verification, this being a technical matter.

(3) Accessories and Components are not earmarked for sale as such. The Company considers a component as 'meant for sale' only when it is actually sold and hence no stocks/purchases are indicated. The cost of such accessories and components sold is included in consumption of raw materials and components. It is not practicable to furnish quantitative information in respect of sales of accessories and components in view of considerable number of items diverse in size and nature.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v Canara Bank (Security Trustee for the Lenders), Prime Corporate Branch - II, Verma Chambers, 2^nd Floor, Homji Street, Fort, Mumbai – 400 001, Maharashtra, India

v State Bank of India, Voltas House, 23, J.N. Heredia Marg, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans banks secured	(A) 8632.000	(B) 3460.000
Working capital loans banks secured	(C) 388.800	0.000
Total	9020.800	3460.000

Footnotes

(A) These loans from bank are secured by English mortgage of immovable properties and on all the movable properties (both present and future) including movable plant and machinery, furniture, fixtures, vehicles, etc. (other than current assets)

(B) These loans from bank are secured by English mortgage of immovable properties and on all the movable properties (both present and future) including movable plant and machinery, furniture, fixtures, vehicles, etc. (other than current assets)

(C) Represents Cash credit, which is secured by hypothecation by way of first charge on all stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other movable property, all book debts, outstanding monies receivable, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security becomes due and owing.

Unsecured Loan	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working capital loans banks unsecured	0.000	(A) 100.500
Working capital loans others unsecured	0.000	(B) 4800.000
Total	0.000	4900.500

Footnotes

(A) Represent bank overdraft from banks

(B) Represent Short term loans and advances from other than Banks

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Mumbai, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABFD7919A
Holding Company :	Mahindra and Mahindra Limited, India CIN No.: L65990MH1945PLC004558
Fellow Subsidiary :	v Mahindra Automobile Distributor Private Limited, India (formerly known as Mahindra Renault Private Limited) v Mahindra Intertrade Limited, India v Mahindra Ugine Steel Company Limited, India v Mahindra Forging Limited, India v Mahindra Castings Limited, India v Mahindra Logistics Limited, India v Mahindra Navistar Engine Private Limited, India v Mahindra Navistar Automotive Limited, India v Mahindra Gears and Transmissions Private Limited, India

CAPITAL STRUCTURE

As on 01.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1300000000	Equity Shares	Rs.10/- each	Rs.13000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
962250000	Equity Shares	Rs.10/- each	Rs.9622.500 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		9622.500	5850.000	4850.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(19.000)	(283.200)	(88.926)
NETWORTH		9603.500	5566.800	4761.074
LOAN FUNDS
1] Secured Loans		9020.800	3460.000	0.000
2] Unsecured Loans		0.000	4900.500	3050.000
TOTAL BORROWING		9020.800	8360.500	3050.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		18624.300	13927.300	7811.074
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15481.100	11260.800	2021.455
Capital work-in-progress (including capital advances)		1328.900	2378.700	5575.714
Expenditure pending allocation, net		61.500	223.900	334.743
INVESTMENT		28.000	85.700	904.120
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2193.400	459.800	0.000
	Sundry Debtors	1672.400	562.700	0.000
	Cash & Bank Balances	83.200	207.000	74.026
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2927.900	940.100	229.286
Total Current Assets		6876.900	2169.600	303.312
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4406.900	2018.800	1276.523
	Other Current Liabilities	634.300	100.800	43.501
	Provisions	110.900	71.800	8.246
Total Current Liabilities		5152.100	2191.400	1328.270
Net Current Assets		1724.800	(21.800)	(1024.958)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		18624.300	13927.300	7811.074

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net (including income from operations)	11812.200	893.200	0.000
		Other Income	38.500	54.800	0.000
		TOTAL (A)	11850.700	948.000	0.000
Less	EXPENSES
		Consumption materials changes inventories	8990.900	633.800	0.000
		Employee related expenses	517.600	87.200	18.971
		Administrative selling other expenses	644.400	122.700	21.775
		TOTAL (B)	10152.900	843.700	40.746
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1697.800	104.300	(40.746)
Less	INTEREST FINANCIAL CHARGES (D)		833.300	165.000	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		864.500	(60.700)	(40.746)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		600.300	133.600	23.811
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		264.200	(194.300)	(64.557)
Less	TAX (H)		0.000	0.000	1.177
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		264.200	(194.300)	(65.734)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(283.200)	(88.900)	(23.192)
	BALANCE CARRIED TO THE B/S		(19.000)	(283.200)	(88.926)
	IMPORTS
		Raw Materials	NA	40.519	0.000
		Capital Goods	NA	1560.645	1063.932
	TOTAL IMPORTS		NA	1601.164	1063.932
	Earnings/ (Loss) Per Share (Rs.)		0.34	(0.39)	(0.27)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.23	(20.49)	0.00
Net Profit Margin (PBT/Sales)	(%)	2.24	(21.75)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.18	(1.45)	(2.78)
Return on Investment (ROI) (PBT/Networth)		0.03	(0.03)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		1.48	1.89	0.92
Current Ratio (Current Asset/Current Liability)		1.33	0.99	0.23

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year, the Company achieved a total production volume of 40,954 vehicles. The Company recorded net sales of Rs.10985.700 millions as against Rs.887.100 millions in the previous year recording a growth of 23%. During the year, the Company commenced commercial production of various products for it’s two major customers as follows:-

A) Mahindra Navistar Automotives Limited:-

• Two variants of Medium and Heavy Commercial Vehicles range – the twenty five ton ‘MN25’ and thirty one ton ‘MN31’. The product was well received by the customer.

B) Mahindra and Mahindra Limited:-

• A 1.2 ton pickup called Genieo. This product was well appreciated for its quality right from the first dispatch.

• A Semi Hard Top version of Maxximo which also was well received.

• A new product in entirely new segment of construction equipment – the Backhoe Loader.

The Company is now in the process of ramping up the productions of these models and also getting equipped for the start of production of new products as per the plans of both customers. The Company recorded a sale of 40,190 vehicles during the year.

STATUS OF THE PROJECT

The Company's manufacturing facility is located at Chakan. The construction of the plant commenced in the year 2008 and is in progress. All the major manufacturing facilities and majority of the support systems are nearing completion. The plant now boasts of four body shops, four assembly lines, two paint shops, one press shop and two aggregate blocks. The body shops and assembly lines are connected to paint shop by an automatic conveyor for most of the products. The work of development of infrastructure and common facilities is in progress. This includes development of roads, test track for vehicles, electrical main receiving station, finished vehicles parking space amongst other things.

The Company has also developed a supplier park within the premises to facilitate supply of high volume and bulky parts. Two of the suppliers have already commenced production from this location. The other suppliers have started construction of their facilities inside the suppliers park and are in various stages of completion. When completed, the suppliers park is expected to bring savings in freight and logistics cost to the Company.

CAPITAL:

During the year, the Company increased its Authorized Share Capital by Rs.3000.000 millions from Rs.10000.000 millions to Rs.13000.000 millions. During the period, the Company allotted 37,72,50,000 Equity Shares of Rs.10 each for cash at par aggregating to Rs.3772.500 millions to Mahindra and Mahindra Limited its holding company.

Bankers Charges Report as per Registry

Corporate identity number of the company	U34100MH2007PLC171151
Name of the company	MAHINDRA VEHICLE MANUFACTURERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018, Maharashtra, India E-Mail : r.vijay@mahindra.com
This form is for	Modification of charge
Charge identification number of the modified	10213377
Type of charge	Immovable Property Any interest in immovable property
Particular of charge holder	Canara Bank (Security Trustee for the Lenders), Prime Corporate Branch - II, Verma Chambers, 2^nd Floor, Homji Street, Fort, Mumbai – 400 001, Maharashtra, India E-Mail: cb1903@canarabank.com
Nature of description of the instrument creating or modifying the charge	Supplementary Deed of Mortgage
Date of instrument Creating the charge	31.03.2011
Amount secured by the charge	Rs.12000.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest in accordance with Schedule I of the Principal Deed of Mortgage dated 29.03.2010 or as may be stipulated from time to time by lenders Terms of Repayment As Per Repayment Schedule of Rupee Loan and Foreign Currency Loans mentioned in Schedule IV of the Principal Deed of Mortgage dated 29.03.2010 Margin: In accordance with Schedule I of the Principal Deed of Mortgage dated 29.03.2010 or as stipulated by Lenders from time to time Extent and Operation of the charge: In addition to the registered charge created earlier the company is now creating a an additional charge on its Long Term Leased Land and factory and other buildings, godowns and other structures, fixed plant and machinery including anything attached to the earth or anything permanently fastened to anything attached to earth, as security for repayment of Rs.12000.000 millions [Comprising : Rupee Loan of Rs.10000.000 millions granted by the Banks]
Short particulars of the property charged	In addition to the registered charge created earlier the company is now creating a an additional charge on its Long Term Leased Land and factory and other buildings, godowns and other structures, fixed plant and machinery including anything attached to the earth or anything permanently fastened to anything attached to earth, as security for repayment of Rs.12000.000 millions [Comprising : Rupee Loan of Rs.10000.000 millions granted by the banks
Particulars of the present modification	Creation of additional security.

Corporate identity number of the company	U34100MH2007PLC171151
Name of the company	MAHINDRA VEHICLE MANUFACTURERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai - 400 018, Maharashtra, India
This form is for	Creation of Charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Nature of instrument creating charge	Letter of hypothecation of Stocks and Book Debts.
Date of instrument Creating the charge	30.07.2010
Amount secured by the charge	Rs.500.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per mutually agreed terms Terms of repayment As per mutually agreed terms Margin 25% or as may be mutually agreed from time to time Extent and operation of the charge On all stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other movable property; all book debts, outstanding monies receivable, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing.

FIXED ASSETS:

v Leasehold Land

v Buildings

v Plant and Machinery

v Furniture and Fixture

v Vehicles

v Software

WEBSITE DETAILS:

PROFILE:

Subject was set up in 2007 to push their technology to the edge.  They designed and built a greenfield facility at Chakan, near Pune, Maharashtra, to integrate the best in technology, environmental sustainability, social responsibility, and operational excellence.  Spread across 700 acres and planted with approximately 10,000 trees, Chakan offers a flexible and eco-friendly manufacturing layout for multiple Multi-Purpose Vehicles (MPVs), sport utility vehicles (SUVs), and commercial vehicles that allows them to respond rapidly to changing customer needs. 

With a current capacity of 3.2 million vehicles per year and a future-ready expandable module setup, they have the flexibility to constantly innovate and adapt to changes in market demand or customer requirements.  They currently manufacture Mahindra and Mahindra’s entire medium and heavy commercial vehicle range from the 0.75 ton Maxximo to the 49 ton Mahindra Navistar truck.  The new Global SUV and Pik-Up range will also be manufactured here.

Their staff of 1,800 is highly trained in the fields of mechanical, electronic, civil and electric engineering as well as paint technology.  They partner with two regional tribal Industrial Training Institutes (ITIs) to facilitate a match between educational quality and content and industry demands.  Their partnership has resulted in periodic faculty training sessions, a restructuring of the curriculum, and the recruitment of 173 students to an apprenticeship training scheme by 2011.  They also maintain their own residential training centre which provides a month-long training to the selected trainees before they initiate work at the shop floor.

They use solar energy and waste heat from the oven exhaust to power activities in the paint shop, reducing their consumption of gas and electricity for an overall reduction of 3,500 tons of CO₂ per year.  A cluster of 70 solar dishes provides the energy for cooling the paint used for the vehicle bodies.  And by recycling waste water through reverse osmosis and multiple effect evaporation, they achieve zero water discharge across the entire plant.

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.49.90
UK Pound	1	Rs.78.15
Euro	1	Rs.65.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	3
--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		44

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.