MIRA INFORM REPORT

Report Date :

17.03.2012

IDENTIFICATION DETAILS

Name :	BALKRISHNA INDUSTRIES LIMITED
Registered Office :	H-3/1, MIDC, A Road, Tarapur, Boisar – 401506, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.11.1961
Com. Reg. No.:	11-12185
Capital Investment / Paid-up Capital :	Rs.193.317 Millions
CIN No.: [Company Identification No.]	L99999MH1961PLC012185
TAN No.: [Tax Deduction & Collection Account No.]	MUMB11319A
PAN No.: [Permanent Account No.]	AAACB3333J
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing, exporter and importer of tires
No. of Employees :	1200 (Approximately) (Mumbai Office 250)

RATING & COMMENTS

MIRA’s Rating :

A (66)

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 33000000
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 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

INFORMATION PARTED BY

Name :	Mr. Manoj Jayetia
Designation :	Finance Head
Contact No.:	91-22-66663800

LOCATIONS

Registered Office :	H-3/1, MIDC, A Road, Tarapur, Boisar - 401 506, Maharashtra, India
Tel. No.:	91-22-28315168
Fax No.:	91-22-66663898
E-Mail :	manoj.jagetia@bkt-tires.com shares@bkt-tires.com
Website :	www.bkt.tires.com
Location :	Owned
Corporate Office :	BKT House, C Wing, 15^th Floor, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-66663800 extension 836/ 237
Fax No.:	91-22-66663898
Plant:	Tyre Manufacturing Plant: B-66, MIDC Industrial Estate, Waluj Industrial Area, Aurangabad, Maharashtra, India SP-923, RIICO, Phase III, Post Office Bhiwadi – 301 019, District Alwar, Rajasthan RIICO, Phase VIII, Chopanki, P.O. Bhiwadi, 301 109 Dist. Alwar. Rajasthan Village Padhdhar, Taluka Bhuj. Dist. Kachchh, Gujarat Wind Farm: Village Soda And Mada, Tehsil, Fatehgarh, District Jaisalmer, Rajasthan Mould Plant: Plot No. TS-1, M.I.D.C, Phase No. II, Dombivali (East), District Thane - 421 201, Maharashtra, India

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Dharaprasad R. Poddar
Designation :	Chairman
Name :	Mr. Arvind M. Poddar
Designation :	Vice Chairman and Managing Director
Qualification:	B.Com
Date of Appointment:	01.08.2006
Name :	Mr. Anurag Poddar
Designation :	Executive Director
Name :	Mr. Rajiv Poddar
Designation :	Executive Director
Name :	Mr. Sachin Nath B. Chaturvedi
Designation :	Director
Name :	Mr. Subhashchand Mantri
Designation :	Director
Name :	Mr. Rameshkumar D. Poddar
Designation :	Director
Name :	Mr. Khurshed Doongaji
Designation :	Director
Name :	Mr. Laxmidas Merchant
Designation :	Director
Name :	Mr. Ashok M. Saraf
Designation :	Director
Name :	Mr. Sanjay Asher
Designation :	Director
Name :	Mr. Basantkumar Bansal
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Vipul R. Shah
Designation :	Company Secretary
Name :	Mr. Manoj Jayetia
Designation :	Finance Head
Management Committee :	Mr. Dilip M Vaidya – Director (Technical) Mr. Rajiv Poddar Mr. Anurag Poddar Ms. Khushboo Poddar Mr. Basantkumar Bansal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	52,551,240	54.37
Bodies Corporate	270	-
Sub Total	52,551,510	54.37
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	52,551,510	54.37
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	13,986,459	14.47
Financial Institutions / Banks	13,165	0.01
Foreign Institutional Investors	16,048,806	16.60
Sub Total	30,048,430	31.09
(2) Non-Institutions
Bodies Corporate	2,274,793	2.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	6,252,963	6.47
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	5,285,708	5.47
Any Others (Specify)	245,191	0.25
Non Resident Indians	244,091	0.25
Foreign Nationals	1,000	--
Trusts	100	--
Sub Total	14,058,655	14.54
Total Public shareholding (B)	44,107,085	45.63
Total (A)+(B)	96,658,595	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)	96,658,595	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, exporter and importer of tires
Exports :
Products :	Tires
Countries :	European Countries Saudi Arab
Imports :
Products :	Raw material and Chemical
Countries :	China Japan Korea
Terms :
Selling :	L/C / Cash / Credit
Purchasing :	L/C / Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tyres	Numbers	49.45 lacs	41.02 lacs	24,50,272
Tyres Flaps	Numbers	N.A	3.79 lacs	96,195
Wind Power Generation (Captively consumed)	KWH/Units	N.A	5 MW	54,93,784

GENERAL INFORMATION

Customers :

Retailers, End Users and OEM’s

No. of Employees :

1200 (Approximately) (Mumbai Office 250)

Bankers :

v Bank of Baroda, Mumbai

v State Bank of India

Facilities :

Secured Loan	As on 31.03.2011	As on 31.03.2010
	(Rs. In Millions)
Working Capital Loans
From Banks	3541.876	2307.511
Term Loans
From Banks	312.550	315.980
From Others	0.000	19.185
Total	3854.426	2642.676
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
	(Rs. In Millions)
Short Term Loans and Advances :
From Banks	2184.461	982.535
Other Loans and Advances
i) 4.5% Foreign Currency Convertible Bonds ‘Series B’	0.000	993.080
ii) Deferred Sales Tax under the scheme of Government of Maharashtra	31.405	24.991
Total	2215.866	2000.606

Banking Relations :	--
Auditors :
Name :	Jayantilal Thakkar and Company Chartered Accountants
Internal Auditor :	Dilip A. Jain and Associates Chartered Accountants
Subsidiaries :	· Balkrishna Paper Mills Limited · Balkrishna Synthetics Limited · BKT Tyres Limited · BKT Exim Limited Indirect Subsidiary Companies · Subsidiary Companies of BKT Exim Limited; i.e. BKT (EUROPE) Limited · BKT EUROPE S.R.L · BKT (USA) INC.
Related Parties :	· Siyaram Silk Mills Limited · Govind Rubber Limited. · SPG Infrastructure Limited. · GRL International Limited. · BKT Moulds Limited. · Balgopal Holding and Traders Limited. · S P Finance and Trading Limited., · S P Investrade (India) Limited. · Sanchna Trading and Finance Limited., · Poddar Brothers Investment Private. Limited.

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.2/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96658595	Equity Shares	Rs.2/- each	Rs.193.317 Millions

Note

Of the above Shares:

i) 8, 43, 65,800 Equity Shares of Rs.2 each (Previous Year 1, 68, 73,160 Equity Shares of Rs.10 each) were allotted as fully paid up, by way of Bonus Shares by capitalisation of Share Premium Account and General Reserve.

ii) 4, 87,800 Equity Shares of Rs.2 each (Previous Year 97,560 Equity Shares of Rs.10 each) were allotted as fully paid up on conversion of convertible portion of partly convertible Debentures.

iii) 38, 04,995 Equity Shares of Rs.2 each (Previouse Year 7, 60,999 Equity Shares of Rs.10 each) were allotted as fully paid up on conversion of Foreign Currency Convertible Bonds-FCCB.

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		193.317	193.317	193.317
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8124.441	6414.437	4484.960
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8317.758	6607.754	4678.277
LOAN FUNDS
1] Secured Loans		3854.426	2642.676	3310.905
2] Unsecured Loans		2215.866	2000.606	1417.203
TOTAL BORROWING		6070.292	4643.282	4728.108
DEFERRED TAX LIABILITIES		569.935	548.118	523.871
TOTAL		14957.985	11799.154	9930.256
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6874.432	6148.834	5345.550
Capital work-in-progress		1463.819	588.700	747.170
INVESTMENT		322.351	807.265	322.258
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4103.762	2030.526	1222.577
	Sundry Debtors	3247.788	2403.040	2190.811
	Cash & Bank Balances	109.866	42.279	111.389
	Other Current Assets	0.292	0.287	0.609
	Loans & Advances	4852.991	3696.470	2783.127
Total Current Assets		12314.699	8172.602	6308.513
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2154.801	843.369	611.073
	Other Current Liabilities	238.432	305.676	235.930
	Provisions	3624.083	2769.202	1946.232
Total Current Liabilities		6017.316	3918.247	2793.235
Net Current Assets		6297.383	4254.355	3515.278
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14957.985	11799.154	9930.256

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	19969.404	13869.596	12523.351
		Other Income	163.537	264.386	49.148
		TOTAL	20132.941	14133.982	12572.499
Less	EXPENSES
		Manufacturing, Trading and Other Expenses	16426.316	10171.910	10553.461
		TOTAL	16426.316	10171.910	10553.461
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		3706.625	3962.072	2019.038
Less	FINANCIAL EXPENSES		212.226	186.590	375.044
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3494.399	3775.482	1643.994
Less/ Add	DEPRECIATION/ AMORTISATION		744.390	662.161	565.163
	PROFIT BEFORE TAX		2750.009	3113.321	1078.831
Less	TAX		893.817	1048.047	375.880
	PROFIT AFTER TAX		1856.192	2065.274	699.451
Less/ Add	Adjustments relating to earlier years
	Short Provision for (Expenses) (Net)		(0.568)	(1.648)	6.014
	Excess Provision for Taxation of earlier years		0.964	23.648	0.000
Less	Extra ordinary Item		0.000	0.000	2.515
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2379.311	658.561	585.878
Less	APPROPRIATIONS
		Transfer to General Reserve	185.659	208.727	494.609
		Interim Dividend	0.000	135.322	0.000
		Proposed Final Dividend	135.322	0.000	115.990
		Tax on Dividend	21.868	22.475	19.668
	BALANCE CARRIED TO THE B/S		3893.050	2379.311	658.561
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	17047.123	11792.933	10874.058
		Recovery towards Freight and Insurance on Exports	596.426	355.654	523.525
		Recovery of Capital Expenditure	0.000	6.791	2.478
		Recovery towards Sale of Raw Materials	0.000	4.437	0.000
	TOTAL EARNINGS		17643.549	12159.815	11400.061
	IMPORTS
		Raw Materials	9647.369	5029.738	4058.231
		Stores & Spares	86.040	78.878	108.253
		Capital Goods	160.834	258.445	594.708
		Others	0.000	3.972	0.000
	TOTAL IMPORTS		9894.243	5371.033	4761.192
	Earnings Per Share (Rs.)		19.21	21.59	--

QUARTERLY RESULTS

PARTICULARS	30.06.2011 1^st Quarter	30.09.2011 2^nd Quarter	31.12.2011 3^rd Quarter
Net Sales	5844.400	6782.200	7587.700
Total Expenditure	4787.700	5596.300	6255.900
PBIDT (Excl OI)	1056.700	1185.900	1056.700
Other Income	5.500	1.300	2.900
Operating Profit	1062.200	1187.200	1334.700
Interest	33.000	45.400	46.800
Exceptional Items	0.000	0.000	0.000
PBDT	1029.200	1141.800	1287.900
Depreciation	199.100	205.200	208.900
Profit Before Tax	830.100	936.600	1079.000
Tax	269.000	303.900	350.200
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	561.100	632.700	728.800
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	561.100	632.700	728.800

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.22	14.77	5.59
Net Profit Margin (PBT/Sales)	(%)	13.77	22.45	8.61
Return on Total Assets (PBT/Total Assets}	(%)	14.33	21.74	9.26
Return on Investment (ROI) (PBT/Networth)		0.33	0.47	0.23
Debt Equity Ratio (Total Liability/Networth)		1.45	1.30	1.61
Current Ratio (Current Asset/Current Liability)		2.05	2.09	2.26

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	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	No
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	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS:

The Company mainly operates in one segment i.e. “tyres” with a focus on manufacture of wide range of “Off-Highway Specialty Tyres”. These specialty tyres are meant for Agricultural, Industrial, Material Handling, Construction, Earthmoving (OTR), Forestry, Lawn and Garden Equipments and All Terrain Vehicles (ATV). Around 90% of your revenue is generated through exports.

After a year of severe slowdown in F.Y.09 – 10, the company witnessed a good surge in F.Y. 10 – 11 that resulted in top line growth of above 42%. The Net Turnover and other Income of the company increased from Rs.14130.000 millions to Rs.20130.000 millions in the year under consideration.

Due to unprecedented increase in raw material and other input costs, the operating margin (EBIDTA) of the company for the year declined to Rs.3710.000 millions from Rs.3960.000 millions in the previous year. Correspondingly, the profit after tax also declined to Rs.1860.000 millions during the year under consideration as compared to Rs.2070.000 millions in the previous year.

The Company continues to enjoy the status of “STAR TRADING HOUSE”.

OUTLOOK

The company is seeing continuity in demand of its products in the current financial year in line with that of previous year which was encouraging. The said demand is coming from across the globe. The demand from replacement as well as OEM segment has shown good signs of revival and likely to be there in times to come.

Though the raw material prices and other input costs are started softening in the current financial year as compared to previous year, still it is on the higher side. If the softening in raw material prices and other inputs costs continue, the margins of the company in the current financial year is expected to be better than that of previous year.

The company continues to expand its base through developing new product lines, venturing into new geographies and deeper penetration into existing markets to ensure its sustainable growth.

CONTINGENT LIABILITIES IN RESPECT OF:

Rs. In Millions

Particulars	31.03.2011	31.03.2010
Guarantees given by the Company’s bankers on behalf of the Company against the Company’s indemnity	115.609	112.304
Corporate Guarantee given by the Company to President of India through commissioner of Custom	6500.000	0.000
Interest payable on redemption of Foreign Currency Convertible Bonds ‘Series B’	0.000	66.341
Disputed claims for excise, sales tax and service tax	136.358	104.707
Disputed income tax demands	138.795	81.081

Unaudited Financial Results for The Quarter Ended 31^st December 2011

			(Rs. In Millions)
Particulars	Quarter Ended		Nine Months Ended
	Unaudited 31.12.2011	Unaudited 30.09.2011	Unaudited 31.12.2011
(a) Net Sales / Income from operations	7570.800	6753.200	20138.300
(b) Other Operating Income	16.900	29.000	76.000
Total Income	7587.700	6782.2	20214.3
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	88.300	(244.600)	(1714)
b) Consumption of raw materials	4405.400	4421.200	12521.800
c) Purchase of traded goods	37.300	53.400	136.200
d) Employees cost	175.500	173.600	521.900
e) Depreciation	208.900	205.500	613.200
f) Power and Fuel	263.400	240.800	715.800
f) Other expenditure	1180.600	890.000	2748.300
Total	6359.400	5739.500	17085.800
Profit from operations before other income, interest and exceptional Items	1228.300	1042.600	3128.500
Other income	2.900	1.300	5.800
Net exchange Difference (Gain) / loss	(105.400)	(61.900)	(163.400)
Profit before interest and exceptional Items	1125.800	982.000	2970.900
Interest / Finance charges	46.800	45.400	125.200
Profit after Interest but before Exceptional Items	1079.00	936.600	2845.700
Exceptional Items	--	--	--
Profit (+)/Loss(-) from Oridinary Activities before tax	1079.00	936.500	2845.700
Tax expense
· Current	340.200	301.300	918.700
· Deferred	9.900	2.600	4.500
Net Profit (+)/Loss(-) from Ordinary Activities after tax	728.800	632.700	1922.500
Extraordinary Items (net of tax expenses)	--	--	--
Net Profit (+) / Loss (-) for the year period	728.800	632.700	1922.500
Paid up equity share capital (Face value of Rs.2/- per share)
Reserves excluding revaluation reserves	193.300	193.300	193.300
Earnings per share (EPS)
(a) Basic	0.754	0.654	1.989
(b) diluted	0.395	0.493	1.503
Public shareholding
Number of shares	44107085	44107085	44107085
Percentage of shareholding	45.63	45.63	45.63
Promoters and Promoters group Shareholding
a) Pledged /Encumbered
Number of shares	Nil	Nil	Nil
b) Non Encumbered
Number of shares	52551510	52551510	52551510
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100	100	100
Percentage of shares (as a % of total share capital of the company)	54.37	54.37	54.37

NOTE:

1. The above Unaudited (Stand -alone) results as reviewed by the Audit Committee have been approved by the Board of Directors at its meeting held on 11th February, 2012. The Auditors of the company have carried out the "Limited Review" of the above results.

2. The exchange difference represents difference in foreign exchange rates on all foreign currency denominated accounts outstanding at the year/period end.

3. Segment reporting as required byAS-17 is not applicable as the Company operates in one single primary business segment i.e. Tyres.

4. The implementation of green field lyre plant at Bhuj is progressing as per schedule.

5. The Board has approved further capacity expansion and supporting infrastructure development programme (Phase II) of the Company at Bhuj. The total estimated capital outlay at Bhuj will be Rs.18000.000 millions.

6. The details of number of investor complaints for the quarter:

Beginning-Nil, Received-1, Disposed -1, Pending - Nil

7. Figures for the previous periods/ year have been Re-grouped/ Re-classified wherever necessary

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Buildings and Roads

· Plant and Machinery

· Factory, Office And Other Equipments

· Electric Installations

· Furniture and Fixtures

· Vehicles

· Air Conditioners

· Intangible Assets - Computer Software

WEBSITE DETAILS:

BUSINESS DESCRIPTION

Subject is an India-based company engaged in manufacturing pneumatic tires. The Company focuses on manufacturing of off-highway specialty tires. These tires are used for agricultural, industrial, material handling, construction, earthmoving (OTR), forestry, lawn and garden equipments and all terrain vehicles (ATV). The Company operates through tyre segment. Approximately 90% of the Company’s revenues are generated through export of its products. The Company is also engaged in manufacturing of coated and uncoated paper boards, processing of synthetic textile fabric and marketing support services. As of March 31, 2011, it had installed capacity to produce 4.102 millions of tires per year. Its subsidiaries include Balkrishna Paper Mills Limited, Balkrishna Synthetics Limited, BKT Exim Limited and BKT Tyres Limited. For the fiscal year ended 31 March 2010, Balkrishna Industries Limited's revenues increased 13% to Rs.15.94B. Net income before extraordinary items totaled Rs.2.19B, up from Rs.746.5M. Revenue reflect an increase in income from Tyre segment and a rise in other income. Net income reflects a decrease in manufacturing expenses, the presence of income from increase/decrease in stock vs. loss and a decrease in interest and finance charges of the company.

BOARD OF DIRECTORS

Dharaprasad Ramrikhdas Poddar

Non-Executive and Non-Independent Chairman of the Board

Mr. Dharaprasad Ramrikhdas Poddar is Non-Executive and Non-Independent Chairman of the Board of Balkrishna Industries Limited. His other directorships include, Siyaram Silk, Mills Limited., Rajkamal Processors Limited

Arvind Kumar Mahabirprasad Poddar

Executive Vice Chairman of the Board, Managing Director

Mr. Arvind Kumar M. Poddar is Executive Vice Chairman of the Board, Managing Director of Balkrishna Industries Limited. He holds Bachelor of Commerce.

Bansatkumar G. Bansal

Director - Finance, Whole Time Director

Mr. Bansatkumar G. Bansal is Director - Finance, Executive Director of Balkrishna Industries Limited. He is Bachelor of Commerce and Associate Chartered Accountant.

Sachin Nath B. Chaturvedi

Non-Executive and Independent Director

Mr. Sachin Nath B. Chaturvedi is Non-Executive and Independent Director of Balkrishna Industries Limited. His directorship includes with Jai Corp Limited, N R Agarwal Industries Limited.

Khurshed Minocher Doongaji

Non-Executive and Independent Director

Mr. Khurshed M. Doongaji is Non-Executive and Independent Director of Balkrishna Industries Limited. His directorship includes with Jai Corporate Limited.

Subhash Chand B. Mantri

Non-Executive and Independent Director

Mr. Subhash Chand B. Mantri is Non-Executive and Independent Director of Balkrishna Industries Limited. He holds B.Com, F.C.A.

Laxmidas V. Merchant

Non-Executive and Independent Director

Mr. Laxmidas D. Merchant is Non-Executive and Independent Director of Balkrishna Industries Limited. He holds B.Com, C.A.

Anurag Pawankumar Poddar

Executive Director

Mr. Anurag Pawankumar Poddar is a Executive Director of Balkrishna Industries Limited. He holds Masters of Business Administration (Finance) from Drexel University.

Ashok M. Saraf

Non-Executive and Independent Director

Mr. Ashok M. Saraf is Non-Executive and Independent Director of Balkrishna Industries Limited. His directorship includes with Saraf Chemicals Limited.

Arvindkumar Mahabirprasad Poddar

Executive Vice Chairman of the Board, Managing Director

Mr. Arvind Kumar M. Poddar is Executive Vice Chairman of the Board, Managing Director of Balkrishna Industries Limited. He holds Bachelor of Commerce.

Bansatkumar G. Bansal

Director - Finance, Whole Time Director

Mr. Bansatkumar G. Bansal is Director - Finance, Executive Director of Balkrishna Industries Limited. He is Bachelor of Commerce and Associate Chartered Accountant.

PRESS RELEASE:

Indian company plans to enter N. American farm tire market; Malhotra Rubbers setting up exclusive dealer network.

30 January 2012

Malhotra Rubbers Limited., a New Delhi-based farm and specialty tire maker, plans to enter the North American radial farm tire market this year through a network of exclusive dealers it expects to set up throughout the U.S. and Canada.

Malhotra's decision to start exporting to the U.S. coincides with the pending completion later this spring of a $ 5 million expansion at its 34-year-old plant in New Delhi. The expansion will provide Malhotra added flexibility in producing sizes geared for export, according to Monit Malhotra, executive director of the company and the third generation of the Malhotra family active in company management.

The company has yet to sign its first dealer but is confident its products can attract quality distributors, Mr. Malhotra told Tire Business. The company expects to generate $11 million in sales in its first full year of doing business in North America.

It will not set up a North American office but instead work through the distributors it chooses, he added.

The firm plans to start with a range of radial drive-axle tires in sizes ranging from 24 to 38 inches as well as bias-ply implement, industrial, skid steer and backhoe tires. Malhotra claims to have more than 650 SKUs from which to select and "is open to develop new sizes as per the market demands and customer requirements".

The tire maker did not disclose pricing for the products it intends to sell in North America.

The expansion at the firm's New Delhi plant is increasing capacity for radial light truck and agricultural tires and expanding the plant's overall output to 18,000 metric tons of tires annually. Employment will stay at about 600 since the expansion focuses on installing "state-of-the-art" manufacturing equipment from U.S., European and Chinese suppliers.

Malhotra was founded in 1954 by C.L Malhotra, Monit Malhotra's grandfather, as a producer of tread rubber. The firm moved into tires in 1978 and began ag tire production 11 years after that, adding radial production in 2003.

Besides farm and implement tires, Malhotra makes industrial, small OTR, light truck, recreational vehicle and two-wheeler tires and tubes and retread materials.

Monit Malhotra's father Gopal Krishan Malhotra is the firm's managing director, and his brother Raghav is also an executive director.

Malhotra exports to more than 65 countries worldwide--an aspect of business that has earned the company numerous export performance awards from CAPEXIL, an Export Promotion Council promoted by India's Ministry of Commerce.

Malhotra already has an exclusive distribution agreement in Mexico with Variedad Y Calidad en Llantas of San Luis Potosi.

The company joins a growing list of Indian farm tire makers looking to North America for sales. Others include Balkrishna Industries Limited and Speedways Rubber Company Limited. In addition, Alliance Tire Americas Inc. sources a share of its products from a plant in India.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--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		66

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.