MIRA INFORM REPORT

Report Date :

29.03.2012

IDENTIFICATION DETAILS

Name :	RANE (MADRAS) LIMITED
Registered Office :	“Maithri”, No.132, Cathedral Road, Chennai – 600 086, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.03.2004
Com. Reg. No.:	18-052856
Capital Investment / Paid-up Capital :	Rs. 101.641 Millions
CIN No.: [Company Identification No.]	L65993TN2004PLC052856
TAN No.: [Tax Deduction & Collection Account No.]	CHER07663F
PAN No.: [Permanent Account No.]	AACCR9772M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	The Company’s principal activity to manufacturer components for transportation industry.
No. of Employees :	977 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3900000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	“Maithri”, No.132, Cathedral Road, Chennai – 600086, Tamilnadu, India
Tel. No.:	91-44-28112472
Fax No.:	91-44-28112449
E-Mail :	investorservices@rane.co.in
Website :	http://www.rane.co.in
Factory 1 :	‘Ganapathi Buildings’, 154 (Old No. 61) Velachery Road, Chennai - 600042, Tamilnadu, India
Tel. No.:	91-44-22452344
Fax No.:	91-44-22451435/ 22450443
Factory 2 :	79/ 84, Hootgally Industrial Area, Mysore – 570018, Karnataka, India
Factory 3 :	77, Thirubuvanai Main Road, Thiruvanai Village, Punducherry – 605107, India
Factory 4 :	Ambakkam, Varanavasi Village, Varanavasi Post, Kancheepuram – 631604, Tamilnadu, India
Factory 5 :	Plot No.27, Sector 11, Integral Industrial Estate, Pant Nagar – 263153, Uttarakhand, India

DIRECTORS

AS ON 31.03.2011

Name :	Mr. L. Ganesh
Designation :	Chairman
Name :	Mr. L. Lakshman
Designation :	Director
Date of Birth/Age :	17.07.1946
Qualification :	B.E., Executive MBA from London Business School
Experience :	Mr. Lakshman has been spearheading the business of different companies in Rane Group and has more than 39 years of industrial experience.
Date of Appointment :	31.03.2004
Other Directorship :	· Rane Brake Lining Limited · Rane Engine Valve Limited · Rane TRW Steering Systems Limited · Rane NSK Steering Systems Limited · Rane Investments Limited · Rane Holdings Limited · Kar Mobiles Limited · JMA Rane Marketing Limited · Force Motors Limited · DCM Engineering Limited
Name :	Mr. P.S. Kumar
Designation :	Director
Name :	Mr. V. Narayanan
Designation :	Director
Name :	Mr. Harish Lakshman
Designation :	Director
Name :	Mr. M. Lakshminarayan
Designation :	Director
Date of Birth/Age :	07.09.1946
Qualification :	M. Tech.
Experience :	Over 35 years of rich experience in automotive industry.
Date of Appointment :	21.07.2008
Other Directorship :	Pricol Limited
Name :	Mr. T. Mukherjee
Designation :	Director
Audit Committee :	Mr. V. Narayanan – Chairman Mr. P.S. Kumar Mr. L. Lakshman Mr. M. Lakshminarayan
Investor’s Service Committee :	Mr. L. Lakshman – Chairman Mr. Harish Lakshman Mr. P.S. Kumar

KEY EXECUTIVES

Name :	Mr. S. Parthasarathy
Designation :	President
Name :	Mr. P. Krishnamoorthy
Designation :	General Manager – Finance
Name :	Mr. K S Kasturirangan
Designation :	Secretary

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	79975	0.79
Bodies Corporate	5473369	53.85
Sub Total	5553344	54.64
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	73060	0.72
Sub Total	73060	0.72
Total shareholding of Promoter and Promoter Group (A)	5626404	55.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	300618	2.96
Financial Institutions / Banks	400	--
Sub Total	301018	2.96
(2) Non-Institutions
Bodies Corporate	480395	4.73
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2550991	25.10
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	988630	9.73
Any Others (Specify)	216707	2.13
Clearing Members	28085	0.28
Any Other	188622	1.86
Sub Total	4236723	41.68
Total Public shareholding (B)	4537741	44.64
Total (A)+(B)	10,164,145	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)	10,164,145	100.00

BUSINESS DETAILS

Line of Business :

The Company’s principal activity to manufacturer components for transportation industry.

Products :

Item Code No. (ITC Code)	8708 99 00
Product Description	Steering and Suspension Linkages
Item Code No. (ITC Code)	8708 94 00
Product Description	Steering Gears

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Steering and Suspension Linkage Products	Nos.	10616089
Steering Gear Products	Nos.	1932111

GENERAL INFORMATION

No. of Employees :

977 (Approximately)

Bankers :

· Canara Bank, Chennai – 600 002, Tamilnadu, India

· Standard Chartered Bank, Chennai – 600 001, Tamilnadu, India

· HDFC Bank Limited, Chennai – 600 002, Tamilnadu, India

· IDBI Bank Limited, Chennai – 600 015, Tamilnadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Banks
Term Loans
Canara Bank	0.000	53.063
Standard Chartered Bank	183.686	79.259
DBS Bank Limited	152.949	0.000
(Secured / to be secured on pari passu basis by a first charge/ hypothecation of Company’s immovable / movable properties)
Cash Credit and Short Term Loan
Canara Bank	128.252	2.656
IDBI Bank Limited	100.495	105.547
Standard Chartered Bank	0.000	8.381
(Secured on pari passu basis by a first charge on inventories and book debts and second charge on immovable properties and movable fixed assets of the Company)
Packing Credit
Standard Chartered Bank	73.809	0.000
(Secured on pari passu basis by a first charge on inventories and book debts and second charge on immovable properties and movable fixed assets of the Company)
Total	639.191	248.906
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Fixed Deposits [includes Rs.2.100 Millions (previous year Rs.1.700 Millions) from Directors]	123.270	121.030
Loan from IDBI Bank Limited	15.340	17.045
Total	138.610	138.075

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Chennai – 600 006
Holding Company :	· Rane Holdings Limited (RHL)
Enterprises over which KMP can exercise significant influence :	· Rane TRW Steering Systems Limited (RTSSL) · Rane Foundation · Kar Mobiles Limited (KML)
Other Related parties where transactions has taken place (Fellow Subsidiaries) :	· Rane Engine Valve Limited (REVL) · Rane Diecast Limited (RDL) · Rane Brake Lining Limited (RBL)

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs. 110.000 Millions
4500000	13.5% Cumulative Redeemable Preference Shares	Rs. 10/- each	Rs. 45.000 Millions
	Total		Rs. 155.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10164145	Equity Shares	Rs.10/- each	Rs.101.641 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		101.641	101.641	101.641
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		884.120	722.858	609.231
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		985.761	824.499	710.872
LOAN FUNDS
1] Secured Loans		639.191	248.906	569.537
2] Unsecured Loans		138.610	138.075	26.781
TOTAL BORROWING		777.801	386.981	596.318
DEFERRED TAX LIABILITIES		32.773	44.608	43.020
TOTAL		1796.335	1256.088	1350.210
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		981.117	664.157	704.096
Capital work-in-progress		242.738	64.891	13.603
INVESTMENT		0.000	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	524.626	450.264	506.154
	Sundry Debtors	812.712	617.447	471.950
	Cash & Bank Balances	58.399	62.444	54.908
	Other Current Assets	1.709	7.788	2.036
	Loans & Advances	157.414	147.911	144.838
Total Current Assets		1554.860	1285.854	1179.886
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	664.297	525.762	400.136
	Other Current Liabilities	227.148	161.194	111.568
	Provisions	90.935	71.908	35.721
Total Current Liabilities		982.380	758.864	547.425
Net Current Assets		572.480	526.990	632.461
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1796.335	1256.088	1350.210

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5839.870	4196.559	3524.614
		Other Income	10.791	10.208	6.972
		TOTAL (A)	5850.661	4206.767	3531.586
Less	EXPENSES
		Cost of Goods Sold	3821.097	2725.283	2264.922
		Employees Costs	593.255	420.930	377.202
		Other Manufacturing, Administrative and Selling Expenses	978.819	718.553	696.994
		TOTAL (B)	5393.171	3864.766	3339.118
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		457.490	342.001	192.468
Less	FINANCIAL EXPENSES (D)		55.736	47.892	81.878
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		401.754	294.109	110.590
Less/ Add	DEPRECIATION/ AMORTISATION (F)		93.389	93.697	98.578
	PROFIT BEFORE TAX (E-F) (G)		308.365	200.412	12.012
Less	TAX (H)		62.600	62.288	8.395
	PROFIT AFTER TAX (G-H) (I)		245.765	138.124	3.617
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		136.482	75.498	71.881
Less	APPROPRIATIONS
		Interim Dividend on Equity Shares @ 45%	45.739	25.410	--
		Proposed Final Dividend on Equity Shares @ 25%	25.410	20.328	--
		Tax on Dividends	11.738	7.773	--
		Transfer to General Reserve	24.576	23.629	--
	BALANCE CARRIED TO THE B/S		274.784	136.482	75.498
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	890.045	603.126	682.235
	TOTAL EARNINGS		890.045	603.126	682.235
	IMPORTS
		Raw Materials	92.968	48.278	63.838
		Components	84.273	42.917	39.386
		Stores & Spares	10.583	2.386	1.565
		Capital Goods	15.248	12.513	24.766
	TOTAL IMPORTS		203.072	106.094	129.555
	Earnings Per Share (Rs.)		24.18	13.59	0.36

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	1536.610	1633.620	1716.750
Total Expenditure	1421.360	1489.000	1569.530
PBIDT (Excl OI)	115.250	144.620	147.220
Other Income	6.280	1.920	4.370
Operating Profit	121.530	146.540	151.590
Interest	22.600	28.700	30.040
Exceptional Items	0.000	0.000	0.000
PBDT	98.930	117.840	121.550
Depreciation	24.770	25.590	27.960
Profit Before Tax	74.160	92.250	93.590
Tax	15.950	22.540	22.290
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	58.210	69.710	71.300
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	58.210	69.710	71.300

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.20	3.28	0.10
Net Profit Margin (PBT/Sales)	(%)	5.28	4.78	0.34
Return on Total Assets (PBT/Total Assets}	(%)	12.16	10.28	0.64
Return on Investment (ROI) (PBT/Networth)		0.31	0.24	0.02
Debt Equity Ratio (Total Liability/Networth)		1.82	1.44	1.61
Current Ratio (Current Asset/Current Liability)		1.58	1.69	2.16

LOCAL AGENCY FURTHER INFORMATION

APPROPRIATION

Profit available for appropriation is Rs.382.25 million. The Directors have declared and paid interim dividends of 45% on the equity capital of the company for the year ended March 31, 2011 and are pleased to recommend a further 25% as final dividend, making for a total dividend of 70% for the year. The amount on this account inclusive of tax on distributed profits and surcharge thereon, works out to Rs.82.89 million leaving the company with retained profits of Rs.299.36 million. Out of this, Rs. 24.58 million is being transferred to the General Reserve and Rs. 274.78 million being retained as surplus in the Profit and Loss Account.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE, DEVELOPMENTS AND SEGMENT-WISE PERFORMANCE

The Company operates in single segment, viz., components for transportation industry. The growth within automobile industry was as follows:-

Growth in %

Segments	2010-11	2009-10
Passenger Cars	27	28
Utility Vehicles	17	24
Small Commercial Vehicles (One Ton and below)	36	8
Light Commercial Vehicles	22	77
Medium and Heavy Commercial Vehicles	38	30
Three Wheelers	29	25
Two Wheelers	27	25
Farm Tractors	22	27

Domestic market continued its robust growth across all segments and this required ramping up capacity. The emphasis on capacity increase and improvement of delivery continued throughout the year.

EXPORTS

In the export market, the recovery in volumes from the later part of the year 2009 - 2010, continued in the year 2010 - 2011. The recovery of US Market helped the company to perform well and the increase in volumes complemented the growth in domestic volumes to help achieve higher sales performance.

The United States Dollar, a currency on which the Company’s exports are mostly dependent on was relatively stable. The strengthening of the rupee was marginal and such fluctuations were handled through conservative policy of hedging.

OEM AND AFTERMARKET

The company’s performance in the OEM Segment continued to be very high albeit at higher costs in some areas to meet delivery deadlines. The Company’s aftermarket volumes, with the introduction of new products and strategic focus on new markets, grew at a healthy rate of 21%.

OPERATIONAL AND FINANCIAL PERFORMANCE

The profit before tax for the year was Rs.308.37 Million against Rs.200.41 Million in the previous year, a growth of 54 % over last year. The Company extended a voluntary retirement scheme for the employees of one of the plants and the impact of Rs 44.95 Million has been provided for in the above profits. Though the profits of the Company was affected due to higher delivery costs caused by increase in demand before capacity could be increased, the continued focus on costs controls and efficiency of operations at a higher level of volumes helped achieving a healthy profitability.

OUTLOOK

The domestic vehicle industry is expected to continue its growth in the coming years in view of steady growth rate of their GDP, rising number of middle class and higher disposable income. With a favourable forecast of the monsoon, Farm Tractors Segment is likely to continue its growth and will be closely monitored by the company for timely ramping up of Capacity.

Prices of commodities like steel, aluminium have already hardened and the cascading effect would impact on all commodity prices. The increase in interest rates could cause an adverse impact on the demand for vehicles.

Focus on capacity utilisation, cost savings, quality and productivity is the key to sustain and improve the higher levels of performance. The Contracts remaining to be executed on Capital account will result in enhancement of their capacity to meet the customer demand.

CONTINGENT LIABILITIES:

Particulars	As on 31.03.2011 (Rs. In Millions)
I. Claims against the Company not acknowledged as debts:
Income Tax matters under appeal by the Company	131.952
Central Excise and Service Tax matters under appeal by the company	2.206
Labour related matters under appeal by the Company	12.263
Corporate Licence fee under appeal by the Company	1.055
Suit filed by freight vendor	0.100
Total	147.576
II. Others :
Income Tax matters under appeal by the Department	3.050

FIXED ASSETS:

· Land – Freehold

· Land – Leasehold

· Leasehold Land Development Costs

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Office Equipment

· Vehicles

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2011

(RS. IN MILLIONS)

Particulars	Quarter Ended		Nine Month Ended
	31.12.2011	30.09.2011	31.12.2011
	Unaudited	Unaudited	Unaudited
1. (a) Net Sales / Income from operations	1683.414	1603.462	4802.514
(b) Other Operating Income	33.342	30.164	85.528
Total Income	1716.756	1633.626	4888.042
2. Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	3.271	(56.749)	(103.787)
b) Consumption of raw materials	1123.020	1122.482	3311.865
c) Employees cost	163.030	156.999	466.448
d) Depreciation	27.957	25.587	78.313
e) Other expenditure	280.209	266.275	805.370
f) Total	1597.487	1514.594	4558.209
3. Profit from operations before other income, interest and exceptional Items (1-2)	119.269	119.032	329.833
4. Other income	4.369	1.922	11.519
5. Profit before interest and exceptional Items	123.638	120.954	341.352
6. Interest	30.043	28.701	81.340
7. Profit after Interest but before Exceptional Items (5-6)	93.595	92.253	260.012
8. Exceptional Items	--	--	--
9. Profit (+)/Loss(-) from Ordinary Activities before tax (7+8)	93.595	92.253	260.012
10. Tax expense
a) Current tax	13.175	19.777	46.175
b) Deferred tax charge/ (credit)	9.120	2.771	14.620
11. Net Profit (+)/Loss(-) from Ordinary Activities after tax (9-10)	71.300	69.705	199.217
12. Extraordinary Item (net of tax expense)	--	--	--
13. Net Profit (+) / Loss (-) for the year period	71.300	69.705	199.217
14. Paid up equity share capital (Face value of Rs.10/- per share)	101.641	101.641	101.641
15. Reserves excluding revaluation reserves as per balance sheet of previous accounting year	--	--	--
16. Earning 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)	7.01	6.86	19.60
(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)	7.01	6.86	19.60
17. Public shareholding
- Number of shares	4537741	4538741	4537741
- Percentage of shareholding	44.64%	44.65%	44.64%
18. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
- Number of shares	--	--	--
- Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--	--	--
- Percentage of shares (as a % of total share capital of the company)	--	--	--
b) Non Encumbered
- Number of shares	5626404	5625404	5626404
- 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)	55.36%	55.35%	55.36%

NOTES:

· The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 27, 2012.

· Exceptional items represent amount paid to employees who opted for Voluntary Retirement Scheme extended to employees in the year ended March 31, 2011.

· Previous period figures have been regrouped/ rearranged wherever necessary to conform to current period's presentation.

· The above unaudited results have been subjected to limited review by the statutory auditors.

· The Statutory Auditors have in their Limited Review Report observed on: (i) Non recognition of mark-to-market gain of Rs.67.676 Millions relating to swap contracts on outstanding External Commercial Borrowings (ECB) at period end. (ii) Short charging of depreciation of Rs.4.157 Millions due to non reinstatment of the ECB at exchange rate as at December 31, 2011 due to accounting treatment followed by the Company. The Company has been consistently treating the ECB and associated swap contracts as a composite transaction since the ECB availed has been effectively hedged through swap contracts. The treatment has been referred to the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) and their opinion is awaited.

· The Company operates only in one segment, namely, components for transportation industry.

· An interim dividend of Rs.5.50 per equity share has been declared by the Board of Directors on the paid-up capital of 1,01,64,145 equity shares of Rs.10/-each, for the year ending March 31, 2012 and the same would be paid to all eligible shareholders as on the Record Date viz., February 08, 2012.

· No. of investor complaints for the quarter ended December 31, 2011:

(a) Pending at the beginning-Nil (b) Received-Nil (c) Resolved-Nil (d) Remaining Unresolved-Nil

WEBSITE DETAILS:

BUSINESS DESCRIPTION

Established in 1960, Subject is a manufacturer and supplier of steering and suspension systems in India. The company markets and distributes a range of ball and pinion type manual steering gears. It also maintains a stock of steering and suspension linkages that includes axle ball joints and tie rod assemblies. In addition, the company designs steering gears and suspension systems for a variety of passenger cars, farm tractors, and light- and heavy-duty commercial vehicles. It also owns and operates a well-equipped manufacturing facility that undertakes several processes for the testing and validation of steering gears.

MORE BUSINESS DESCRIPTIONS

Subject is an India-based company. The Company is engaged in the manufacture of steering and suspension systems for the automobile industry. It operates under one division: components for transportation industry. The Company manufactures two types of steering gears, namely, circulating ball type steering gears, and rack and pinion type steering gears. The other products include tie rod assemblies, drag link assemblies, center link assemblies and gear shift ball joints. The Company is a subsidiary of Subject. Its other subsidiaries include Rane Engine Valve Limited, Rane Diecast Limited and Rane Brake Lining Limited. For the nine months ended 31 December 2010, Rane (Madras) Limited's revenues increased 41% to RS4.25B. Net income totaled RS196M, up from RS88M. Revenues reflect an increase in income from operations and higher other operating income. Net income also reflects a decrease in depreciation charges, a fall in interest cost and improved gross profit margin. Subject is into manufacturing of steering and suspension systems.

MANAGEMENT

P. S. KUMAR

Mr. P. S. Kumar is an Independent Non-Executive Director of Subject, since July 4,1944. Mr. Kumar has 37 years of experience in his profession. He is Director of Elnet Technologies Limited. 2. Elnet Software City Limited 3. ETL Infrastructure Services Limited 4. ETL Power Services Limited 5. Brahmayya Consultants Private Limited Section 25 Company Andhra Chamber of Commerce.

HARISH LAKSHMAN

Mr. Harish Lakshman is Manager, Executive Director of Subject. His Qualification is B.E., MSM

M. LAKSHMINARAYAN

Mr. L Lakshman is Non-Executive Director of Subject, since March 31,2004. He holds B.E., Executive MBA from London Business School. Mr. Lakshman has been spearheading the business of different companies in Rane Group and has more than 41 years of industrial experience. He is Director of Rane Holdings Limited 2. Rane Brake Lining Limited 3. Rane Engine Valve Limited 4. Rane TRW Steering Systems Limited 5. Rane NSK Steering Systems Limited 6. Kar Mobiles Limited 7. JMA Rane Marketing Limited 8. Force Motors Limited 9. DCM Engineering Limited 10. Automotive Stampings and Assemblies Limited 11. Tata AutoComp Systems Limited.

Education

· MBA, London Business School

· BE, London Business School

T. MUKHERJEE

Dr. T. Mukherjee is an Independent Non-Executive Director of Subject. His Qualifications are FNAE, FR Eng., D. Met (Sheffield).

V. NARAYANAN

Mr. V. Narayanan is an Independent Non-Executive Director of Subject. He holds M.Sc.

Education

· MS Chemistry, University of Madras

S. PARTHASARATHY

Mr. S. Parthasarathy is President of Subject. He holds B.E., M.B.A. He has 29 years of experience. He was General Manager - Marketing Rane TRW Steering Systems Limited

MILESTONES

1929 - Subject was founded as a distributor of automobiles and parts

1936- Incorporation as Public Limited company

1959- Diversified into manufacturing and established plant for IC Engine Valves

1960- Established facility to make Tie Rod Ends

1964- Started manufacture of Friction Material

1974- Established Kar Mobiles Limited to manufacture Automotive and Large Valves

1975- Started manufacture of Manual Steering Gears

1987- Established JV with TRW for Power Steering Systems

1991- Established JV with JMA for distribution of auto components

1995- TRW JV also commenced manufacture of occupant restraints

- Established JV with NSK for Energy Absorbing Steering Columns

- Founded Rane Institute for Employee Development

2000- TQM launched under guidance of "Union of Japanese Scientists and Engineers",   Japan

2003- Rane Brake Lining Limited wins Deming Application Prize

2005- Rane Engine Valve Limited wins Deming Application Prize

- Rane TRW Steering Systems Limited - (Steering Gear Division) wins Deming Application Prize

- Invested in High Pressure Die Casting products

2007- Subject wins Deming Application Prize

2008- Rane NSK Steering Systems Limited commenced manufacturing of Electric Power   Steering

2011- Rane TRW Steering Systems Limited (SGD) wins Japanese Quality Medal (JQM)   award

NEWS

BOARD TO CONSIDER INTERIM DIVIDEND

16 January 2012

India, Jan. 16 -- Rane (Madras) Limited has informed BSE that a meeting of the Board of Directors of the Company will be held on January 27, 2012, inter alia, to consider the following;1. To approve the Unaudited Financial Results for the quarter ended December 31, 2011. 2. Declare Interim Dividend, if any, for the year ending March 31, 2012.

RANE (MADRAS) LIMITED Q2 NET PROFIT DIPS 10 PC TO 69.700 MILLIONS

20 October 2011

Mumbai, October 21 2011 (PTI) -- Auto-component manufacturer Rane (Madras) has reported a 10.2 per cent decline in net profit for the quarter ended September 30, 2011, to Rs 69.700 Millions from Rs 77.700 Millions in the year-ago period.

Total income for the quarter rose to Rs.1633.600 Millions from Rs.1436.900 Millions registered during the corresponding period last year, Rane (Madras) said in a filing to the BSE.

Indiabulls Financial Services Q2 net up 33 pc at Rs 2313.800 Millions * Indiabulls Financial Services has reported an increase of 32.62 per cent in net profit at Rs 2313.800 Millions for the quarter ended September 30, 2011.

The company had posted a net profit of Rs 1744.600 Millions in the same period last year, Indiabulls Financial Services said in a statement.

The consolidated total revenue of the company also increased to Rs 912.7 crore from Rs 581.4 crore in quarter ended on September 30, 2010.

Greaves Cotton Q2 net up by 6.6 pc * Greaves Cotton Ltd today said it has reported a 6.6 per cent rise in its net profit to Rs 386.000 Millions for the quarter ended September 30, 2011, over the same period last fiscal.

The net profit of the company was Rs 362.000 Millions for the July-September period a year ago, the company said in a filing to the BSE.

Thomas Cook Q2 Net up 11.53 pc to Rs 250.400 Millions Thomas Cook today posted a 11.53 per cent rise in its net profit to Rs 250.400 Millions for the quarter ended September 30, 2011, against Rs 224.500 Millions in the same period last fiscal.

During the quarter under review, the travel company's total income stood at Rs 1021.400 Millions, up 13.74 per cent from Rs 898.000 Millions in the corresponding quarter last fiscal, Thomas Cook said in a filing to the BSE.

Shares of Thomas Cook closed at Rs 50.30 on the BSE, down 0.59 per cent from the previous close.

Blue Dart Q3 net profit up 42 pc * Courier firm Blue Dart Express Ltd today said it has reported a 42 per cent rise in its net profit at Rs 297.000 Millions for the quarter ended September 30, 2011, against Rs 209.000 Millions the year-ago period, the company said in a statement.

The net sales of courier firm in the quarter under review was Rs 3888.000 Millions, compared to Rs 2936.000 Millions for the same period last year, it added. MORE PTI VJR YB MR 10212138.

ICRA ASSIGNS A1 RATING TO CP PROGRAMME OF RANE (MADRAS)

14 October 2011

India, Oct. 14 -- Credit rating agency, ICRA has assigned rating of A1 to the Rs 300.000 Millions Commercial Paper (CP) programme of Rane (Madras). The ratings derive strength from as the company is leading domestic manufacturer of manual steering gear and steering and suspension linkages, with established track record of more than six decades and it has diverse customer base and wide product portfolio catering to all major automotive segments. Rane (Madras) is a part of the Rane Group of Companies, a leading auto ancillary group based out of Chennai. RML is into the manufacture of manual steering gears (both the re-circulating ball bearing and rack and pinion types) and steering and suspension linkage products. RML has five major facilities located at Chennai, Mysore, Pondicherry, Varanavasi (near Chennai) and Pantnagar, where each plant caters to specific product and industry segment. The company has also established a new facility in Sanand.

ICRA ASSIGNS RATING OF "ICRA A1" FOR RANE MADRAS' COMMERCIAL PAPER PROGRAMME

15 September 2011

India, Sept. 15 -- ICRA has assigned rating of "ICRA A1" to the Rs 300.000 Millions commercial paper programme of Rane Madras (RML). The rating factors in the strong market position of RML in the domestic manual gear and steering and suspension linkages segment with established track record of more than six decades, diverse customer base and wide product portfolio catering to all major automotive segments, established relationship with major automotive OEMs with healthy market share across customers and industry segments. However, the rating also takes note of the company's recent product diversification measures with foray into Hydrostatic Steering Systems for tractor segment and hydraulic cylinders for steering applications, where the impact of the above is yet to be seen. Rane Madras is a part of the Rane Group of Companies, a leading auto ancillary group based out of Chennai. RML is into the manufacture of manual steering gears (both the re-circulating ball bearing and rack and pinion types) and steering and suspension linkage products. RML has five major facilities located at Chennai, Mysore, Pondicherry, Varanavasi (near Chennai) and Pantnagar, where each plant caters to specific product and industry segment. The company has also established a new facility in Sanand.

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.50.92
UK Pound	1	Rs.81.21
Euro	1	Rs.67.85

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	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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		50

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.