MIRA INFORM REPORT

Report Date :

29.03.2012

IDENTIFICATION DETAILS

Name :	Z F STEERING GEAR (INDIA) LIMITED
Registered Office :	Gat No.1242/ 1244, Village Vadu, Budruk, Taluka Shirur, Pune – 412 216, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.01.1981
Com. Reg. No.:	11-023734
Capital Investment / Paid-up Capital :	Rs.90.733 Millions
CIN No.: [Company Identification No.]	L29130PN1981PLC023734
TAN No.: [Tax Deduction and Collection Account No.]	PNEZ01766C
PAN No.: [Permanent Account No.]	AAACZ0549G
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Power Mechanical Steering Gears.
No. of Employees :	727 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 6600000
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

LOCATIONS

Registered Office/ Factory :	Gat No.1242/ 1244, Village Vadu, Budruk, Taluka Shirur, Pune – 412 216, Maharashtra, India
Tel. No.:	91-2137-252223/ 252433/ 252459
Fax No.:	91-2137-252302
E-Mail :	enquiry@zfindia.com satish.mehta@zfindia.com
Website :	www.zfindia.com
Corporate Office :	601 and 602, MCCIA Trade Tower, International Convention Centre, 'A' Wing, 403 A, Senapati Bapat Road, Pune – 411 016, Maharashtra, India
Tel. No.:	91-20-30211600
Fax No.:	91-20-30211699
E-Mail :	satish.mehta@zfindia.com

DIRECTORS

As on 31.03.2011

Name :	Mr. Dinesh Munot
Designation :	Chairman and Managing Director
Qualification :	B.E. (Ele.) M.I.E.
Date of Appointment :	01.07.1984
Name :	Mr. Jinendra Munot
Designation :	Joint Managing Director
Qualification :	B.E. (Mech.), M.S. (Mech.) USA, AMIE (India)
Date of Appointment :	01.02.1986
Name :	Mr. Utkarsh Munot
Designation :	Executive Director
Qualification :	B.E. (Mechanical and Manufacturing Engineering) USA, Diploma in Business Administration, USA
Date of Appointment :	14.05.2004
Name :	Mr. A.H. Firodia
Designation :	Non-Executive Director (up to July 14, 2010)
Name :	Mr. D.S. Bomrah
Designation :	Non-Executive Director
Name :	Mr. Manish Motwani
Designation :	Non-Executive Director
Name :	Dr. Dinesh Bothra
Designation :	Non-Executive Director
Name :	Mr. Walter Salvasohn
Designation :	Non-Executive Director
Name :	Mr. Ludwig Rapp
Designation :	Non-Executive Director
Name :	Mr. M.L. Rathi
Designation :	Non-Executive Director
Name :	Dr. Hans Friedrich Collenberg
Designation :	Non-Executive Director
Name :	Mr. Shridhar S. Kalmadi
Designation :	Non-Executive Director
Name :	Mr. Klaus Traeder
Designation :	Alternate Director for Mr. Walter Salvasohn
Name :	Mr. B.S. Iyer
Designation :	Alternate Director for Dr. Hans Friedrich Collenberg
Name :	Mr. Ajinkya Arun Firodia
Designation :	Non-Executive Director (w.e.f.14.07.2010)

KEY EXECUTIVES

Name :	Mr. Satish Mehta
Designation :	Company Secretary and DGM – Finance
Audit Committee :	Mr. Manish Motwani (Chairman) Mr. D.S. Bomrah Dr. Dinesh Bothra
Shareholders’ Grievance Committee :	Dr. Dinesh Bothra
Remuneration Committee :	Mr. D.S. Bomrah (Chairman) Mr. Manish Motwani

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholders	Total No. of Shares	a % of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4308283	47.48
Sub Total	4308283	47.48
(2) Foreign
Bodies Corporate	2340000	25.79
Sub Total	2340000	25.79
Total shareholding of Promoter and Promoter Group (A)	6648283	73.27
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6329	0.07
Financial Institutions / Banks	1650	0.02
Sub Total	7889	0.09
(2) Non-Institutions
Bodies Corporate	137642	1.52
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1982730	21.85
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	268120	2.96
Any Others (Specify)	28636	0.32
Non Resident Indians	28636	0.32
Sub Total	2417128	26.64
Total Public shareholding (B)	2425017	26.73
Total (A)+(B)	9073300	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)	9073300	--

BUSINESS DETAILS

Line of Business :

Manufacturer of Power Mechanical Steering Gears.

Products :

Item Code No. (ITC Code)	870894
Product Description	Mechanical Steering Gear
Item Code No. (ITC Code)	870894
Product Description	Power Steering Gear (8043)
Item Code No. (ITC Code)	870894
Product Description	Power Steering Gear (8033)

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Hydraulic Power Steering Gears including components/ spares	Nos.	300000	300000	201038
Mechanicals Steering Gears including components/ spares	Nos.	200000	200000	155870

GENERAL INFORMATION

Customers :

OEM’s

· Tata Motors Limited

· Ashok Leyland Limited

· Force Motors Limited

· Daimler

· Eicher Motors Limited

· Swaraj Mazda Limited

· Tatra Udhyog Limited

· Vehicle Factory, Jabalpur

· Volvo India Private Limited

· Asia Motor Works

· MAN-Force Trucks Private Limited

· Mahindra Navistar

· Mahindra Tractors

· ACE

· TAFE (Eicher Tractors Limited)

· Escorts Limited

· International Tractors Limited (Sonalika)

· Mahindra and Mahindra Limited

· Standard Tractors Limited

· Swaraj

No. of Employees :

727 (Approximately)

Bankers :

• Bank of Maharashtra, Branch Camp, Pune
• Canara Bank, Branch Deccan, Pune
• HDFC Bank, Branch Bhandarkar Road, Pune
• YES Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working Capital Loans from Banks	117.275	82.642
Total	117.275	82.642

Note:

The above is secured by hypothecation of stock and book debts and second charge on the fixed assets.

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Sales Tax Deferral under Package Schemes of Incentives (Due within one year Rs.13.753 millions Previous Year Rs)	190.085	201.445
Total	190.085	201.445

Banking Relations :	--
Auditors :
Name :	MGM and Company Chartered Accountants
Address :	Pune, Maharashtra, India
Foreign Collaborator :	ZF Lenksysteme, GmbH
Associate Companies :	ZF Shanghai Steering Company Limited, China ZF Boge Eslatmettal GmbH ZF Sistemas De Direcao Limited, Brazil ZF Great Briton ZF Steering Jincheng (Nanjing), China Varsha Forgings Limited
Joint Venture Company :	ZF Lenksysteme India Private Limited (Company has 26% stake in the company)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9073300*	Equity Shares	Rs.10/- each	Rs.90.733 millions

*(Including 4536650 shares of Rs.10/- each allotted as Bonus Shares by way of capitalization of Securities Premium Account during the year 2005-06)

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		90.733	90.733	90.733
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1568.390	1264.927	1069.353
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1659.123	1355.660	1160.086
LOAN FUNDS
1] Secured Loans		117.275	82.642	16.945
2] Unsecured Loans		190.085	201.445	210.361
TOTAL BORROWING		307.360	284.087	227.306
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1966.483	1639.747	1387.392
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		536.638	503.557	290.949
Capital advance/ work-in-progress		197.930	13.947	0.928
INVESTMENT		830.782	903.738	599.690
DEFERREX TAX ASSETS		(16.058)	2.264	32.421
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	309.878	210.474	320.124
	Sundry Debtors	311.903	213.298	154.987
	Cash & Bank Balances	21.617	38.345	169.609
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	92.579	59.944	45.308
Total Current Assets		735.977	522.061	690.028
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	219.374	208.405	104.275
	Other Current Liabilities	4.341	3.396	2.611
	Provisions	95.071	94.019	119.738
Total Current Liabilities		318.786	305.820	226.624
Net Current Assets		417.191	216.241	463.404
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1966.483	1639.747	1387.392

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2982.160	2161.202	1661.109
		Other Income	98.753	58.610	36.901
		TOTAL	3080.913	2219.812	1698.010
Less	EXPENSES
		Materials	1919.703	1421.111	1127.055
		Manufacturing and Other Expenses	430.237	309.601	273.482
		TOTAL	2349.940	1730.712	1400.537
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		730.973	489.100	297.473
Less/ Add	DEPRECIATION/ AMORTISATION		148.662	76.106	79.511
	PROFIT BEFORE TAX		582.311	412.994	217.962
Less	TAX		173.322	130.657	74.700
	PROFIT AFTER TAX		408.989	282.337	143.262
Add/ (Less):	Depreciation/ Taxation pertaining to earlier years		0.102	4.292	0.140
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.018	13.444	24.630
Less	APPROPRIATIONS
		Proposed Dividend	45.366	45.366	63.513
		Corporate Dividend Tax	7.360	7.535	10.794
		Interim Dividend	45.366	31.757	0.000
		Corporate Dividend Tax on Interim Dividend	7.534	5.397	0.000
		General Reserve	300.000	200.000	80.000
	BALANCE CARRIED TO THE B/S		13.482	10.018	13.444
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	9.954	6.163	9.864
	TOTAL EARNINGS		9.954	6.163	9.864
	IMPORTS
		Raw Materials, Components and consumables	492.875	257.897	471.199
		Capital Goods	100.523	9.304	4.545
	TOTAL IMPORTS		593.398	267.201	475.744
	Earnings Per Share (Rs.)		45.09	31.59	15.77

QUARTERLY RESULTS

PARTICULARS	30.06.2011 (1^st Quarter)	30.09.2011 (2^nd Quarter)	31.12.2011 (3^rd Quarter)
Net Sales	820.510	886.090	829.600
Total Expenditure	634.440	682.250	677.280
PBIDT	186.070	203.840	152.320
Other Income	22.300	6.900	13.820
Operating Profit	208.370	210.740	166.140
Interest	0.350	4.630	0.380
Exceptional Items	0.000	0.000	104.330
PBDT	208.020	206.110	270.090
Depreciation	34.390	36.370	42.480
Profit Before Tax	173.630	169.740	227.610
Tax	53.000	55.000	69.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	120.630	114.740	158.610
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	120.630	114.740	158.610

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	13.27	12.72	8.44
Net Profit Margin (PBT/Sales)	(%)	19.53	19.11	13.12
Return on Total Assets (PBT/Total Assets}	(%)	45.76	40.27	22.22
Return on Investment (ROI) (PBT/Networth)		0.35	0.30	0.19
Debt Equity Ratio (Total Liability/Networth)		0.38	0.44	0.39
Current Ratio (Current Asset/Current Liability)		2.31	1.71	3.04

LOCAL AGENCY FURTHER INFORMATION

Management Discussion and Analysis

The Indian economy exhibited a broad-based recovery in 2010-11 and could regain its pre-crisis growth trajectory. Agriculture showed a rebound. Industry too, achieved its earlier momentum. Services sector continued its near double digit march.

One of the most favourite and highly tracked sector in any economy is the Auto sector given its importance to the economy. According to a recent report published by KPMG, the Auto sector has been a key driver of the Indian economy, accounting for around 4% of India's GDP. The sector is especially of interest, after it has emerged stronger from the recent global downturn, and sales across all segments have seen record breaking numbers in the recent past. The Indian Automobile sector has emerged as the 7 largest and fastest growing markets in the world in 2010. India has become a favourite investment destination as an Auto Hub, and is expected to remain the same in the future, too. This has attracted a lot of foreign investment along with higher competition, thus driving the domestic players to become more efficient.

The overall Commercial Vehicles segment registered a positive growth of 30 percent during April-March 2011 as compared to the same period last year. Passenger Vehicles including Passenger Cars segment during April- March 2011 grew over 24 percent over same period last year.

Review of Operations

Operating Results of the Company

Sales

Comparative quantitative figures of Sales are as under:

(Numbers)

Type	2010-11	2009-10	Growth
Power Steerings	180,639	121,342	49%
Rack and Pinion	155,937	124,151	26%
Mechanical Steerings	20,430	17,225	19%

Other Income

Other Income improved substantially from Rs. 59 million to Rs. 99 million in view of the better capital-market conditions for major part of the year.

Profitability

Raw Material cost as a percentage of sales was down by 2 % for the year due to lower commodity-prices, strong rupee and indigenization of some of the imported components. However, Employees' costs have gone up by 33 % over the previous year. Depreciation was higher at Rs. 149 million against Rs. 76 million (previous year) in view of the full year's depreciation on the 5 MW Wind Turbine Machines commissioned in March 2010. Consequently, Profit before Tax for the year was Rs. 582 million against Rs. 413 million in the previous year.

Earnings Per Share has jumped up from Rs. 31.59 to Rs. 45.09.

Renewable Energy – Wind Power Energy

As you are aware, the Company operates 7 Wind Turbine Machines, located at Satara and Ahmednagar, having aggregate capacity of 6.7 MW for its captive power consumption. The power generated out of these windmills is fed into Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) grid and the units so fed are deducted by MSEDCL in their bills raised on the Company's factory at Vadu Budruk. Total 6,510,888 units were generated in 2010-11 which constituted 73 % of the factory's consumption of power

Outlook/ Opportunities for the Company

The automotive paradigm is shifting from Europe to Asia. Growing markets like India are increasingly becoming important and becoming primary markets for most European countries. SIAM (Society of Indian Automobile Manufacturers) have forecasted 18-21% growth for Light Commercial Vehicles, 16-18% growth for Passenger Cars, 12-14% growth for Utility Vehicles and 10-12% for Heavy Commercial Vehicles in 2011-12 over the previous year.

During 2010-11, the Company has added 3 important customers. Also, new steering types were developed for existing customers.

Automobile industry, however, is very interest-sensitive. Current inflation is threatening to plunge economy into crisis. Food-inflation remains a concern. Crude oil prices over $100 a barrel and high metal prices could further accelerate inflation and interest-rates. RBI, through its recent policy-announcement, has manifested that the priority is to rein in headline inflation, even at the cost of lower growth going forward. This is a marked departure from their previous monetary-policy stance of supporting growth while containing inflationary pressures. The RBI has acknowledged that apart from higher global commodity prices, the single important risk may be higher oil prices. Although, prices of some of the metal prices have soften down in a last few days, there still remains an uncertainty. The focus has shifted from growth momentum to stability and anchoring inflation expectations. Economic growth is expected to moderate in the current year as monetary tightening takes effect. Non-availability of adequate number of skilled manpower and increased wage bill are the constraints, every organization is facing today. Despite these challenges, the Company remains positive about the near-term outlook.

Joint Venture (JV)

ZF Lenksysteme India Private Limited

During the year , additional capital, by way of Rights issue, has been raised by the JV Company in May 2010 and December 2010. Consequently, the paid-up capital of the JV Company now stands at Rs. 130 million. The Company has subscribed to its entitlement, making its total investment in the JV Company to Rs. 33.8 million so far. The Company's share of interest remains same at 26 % of the paid-up capital of the JV Company.

The JV Company has initiated necessary steps for acquiring the land and factory building on lease, in order to establish its assembly operations near Pune, in the current year.

CONTINGENT LIABILITY (Not provided for):

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Income Tax matters in dispute in respect of penalty matters pending before CIT(A), Pune	32.632	32.632
Co-acceptance of Import bills by the bankers	32.610	61.312
Bank Guarantees on behalf of the company	33.668	4.226
Bills discounted	374.104	488.087
Claims against the company not acknowledged as debts	0.157	0.157
Service Tax matters under Appeal	3.634	3.634

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/ NINE MONTHS ENDED DECEMBER 31, 2011

(Rs. In Millions)

Sr.		Quarter Ended			Nine Months Ended
No.	Particulars	Dec. 31,		Sept. 30,	Dec. 31,
		2011		2011	2011
		(Reviewed)		(Reviewed)	(Reviewed)
1.	(a) Net Sales/ Income from Operations	825.120		881.360	2523.520
	(b) Other Operating Income	4.480		4.730	12.680
	Total Income		829.600	886.090	2536.200
2.	a) (Increase)/ Decrease
	in Stock-in-trade & WIP	(8.920)		(3.000)	(8.730)
	b) Consumption of Raw Material	556.770		572.910	1658.740
	c) Purchase of traded goods	1.420		1.380	4.470
	d) Employees Cost	78.710		72.450	217.670
	e) Depreciation	42.480		36.370	113.240
	f) Other Expenditure	49.30		38.510	121.820
	Total Expenditure	719.760		718.620	2107.210
3.	Profit from Operations before other Income, Interest and Exceptional items (1-2)	109.840		167.470	428.990
4.	Other Income	13.820		6.900	43.020
5.	Profit before Interest & Exceptional items(3+4)	123.660		174.370	472.010
6.	Interest	0.380		4.630	5.360
7.	Profit after Interest but before Exceptional items (5-6)	123.280		169.740	466.650
8.	Exceptional items	104.330		-	104.330
9.	Profit from Ordinary Activites before tax (7+8)	227.610		169.740	570.980
	Tax Expenses
10.	Tax Expenses (Net)		69.000	55.000	177.000
11.	Net Profit from Ordinary Activities after tax (9-10)	158.610		114.740	393.980
12	Excess Income-tax of earlier years written-back	-		-	-
13.	Extraordinary items (net of tax expense)	-		-	-
14.	Net Profit for the period (11+12-13)	158.610		114.740	393.980
15.	Paid-up Equity Share Capital (Face-value Rs. 10 Per Share)	90.730		90.730	90.730
16.	Reserves (excluding Revaluation Reserves), as per Balance Sheet of	-		-	-
	previous accounting year.
17.	Earnings Per Share - Basic/Diluted & before/ after Extraordinary items	17.48		12.65	43.42
18.	Public shareholding
	- Number of Shares		2,425,017	2,426,042	2,425,017
	- Percentage of Shareholding	26.73		26.74	26.73
19.	Promoters and promoter group Shareholding
	a) Pledged/ encumbered
	- Number of shares		110,000	140,000	110,000
	- Percentage of shares (as a % of the total shareholding of promoters & Promoters group)	1.65		2.11	1.65
	- Percentage of shares (as a % of the total share capital of the Company)	1.21		1.54	1.21
	b) Non-encumbered
	- Number of shares		6,538,283	6,507,258	6,538,283
	- Percentage of shares (as a % of the total shareholding of promoters & Promoters group)	98.35		97.89	98.35
	- Percentage of shares (as a % of the total share capital of the Company)	72.06		71.72	72.06

Note:

1. The above results were reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on February 8, 2012. The statutory auditors have carried out a limited review of the Financial Results.

2. The operations of the Company relate to only one segment ie. Automotive Components.

3. Corresponding figures of the previous year have been regrouped/ recast, wherever necessary.

4. Exceptional item represents profit on assignment of leasehold rights of Industrial plot situated at Talegaon Industrial Area, Dist. Pune.

5. The Company had received six investor complaints during the quarter ended December 31, 2011. The Complaints have been resloved. There was no investor complaint pending at the beginning of the quarter.

FIXED ASSETS:

· Land (Freehold)

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Furniture, Fixtures and Office Equipments

· Vehicles

· Wind Mills

WEBSITE DETAILS:

PROFILE:

Dense traffic and high speed characterises everyday life on roads. This puts increasing demands on the field of vehicle engineering for higher vehicular safety and comfort. And the steering system plays a major part in fulfilling this requirement.

Subject was incorporated in the year 1980 as a joint venture zf friedrichshafen ag.

Subject a Pioneer in Manufacturing and Supply of Integral Hydraulic Power Steering System in India, and having joint venture with M/s. ZF Lenksysteme GmbH. The plant is located at village Vadu Budruk, Taluka- Shirur, 30 Km away from Pune on Ahmednagar - Pune Highway, in the western part of India. Pune is a major automotive hub with OEM like TATA Motors, General Motors, Mercedes Benz,  Mahindra Navistar, Volks Wagen, Force Motors etc.

Present installed capacity is 1,40,000 units of Mechanical Steering Gears and 2,20,000 units of Power Steering Gears and 50,000 units of Hydraulic Rack and Pinion Steering Gears per annum. They are in the process of ramping up the Mechanical Steering Gear capacity to 2,10,000 units and Power Steering Gear capacity to 3,00,000 units Per Annum.

They have the state of the art technology in Design and Manufacturing various types of Power  Steering Systems and Mechanical Steering Systems based on customer’s need.

They are continously in the process of widening their product base to meet the increasing demands of automotive market and are keen to diversify in appropriate product lines.

They have an established business management system with certification for QMS vide ISO: TS: 16949:2002 and ISO: 14001. They have created service and spare parts network of around 60 dealers uniformly spread all over India ,Nepal, Middle East , South Africa and Bangladesh to address to all their customer’s needs.

The company has an established structure for carrying out various facets of manufacturing functions as per business process defined by ISO: TS: 16949:2002.They had adopted to lean manufacturing systems and have employee strength of around 720 personnel.

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.50.91
UK Pound	1	Rs.81.21
Euro	1	Rs.67.85

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.