MIRA INFORM REPORT

Report Date :

02.05.2012

IDENTIFICATION DETAILS

Name :	MERITOR HVS (INDIA) LIMITED
Registered Office :	Plot No. 36, Hootagalli Industrial Area, Off. Hansur Road, Mysore – 570018, Karnataka
Country :	India
Financials (as on) :	30.09.2011
Date of Incorporation :	13.02.1998
Com. Reg. No.:	08-023383
Capital Investment/ Paid-up Capital:	Rs.24.300 Millions
CIN No.: [Company Identification No.]	U29221KA1998PLC023383
TAN No.: [Tax Deduction & Collection Account No.]	BLRM06347F
PAN No.: [Permanent Account No.]	AABCM8911G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in design, research and development, sales and marketing, including export of automotive components and aggregates thereof.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 1922000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 :	Plot No. 36, Hootagalli Industrial Area, Off. Hansur Road, Mysore – 570018, Karnataka, India
Tel. No.:	91-821-2403235/36
Fax No.:	91-821-2403234
E-Mail :	meritor.mysore@meritor.com
Website :	www.mhvsil.com www.kalyanigroup.com
CVA Ware House :	Gala No.34, Safe Village, Taluka Maval, Near – Talegaon, Pune – 412016, Maharashtra, India
Tel. No.:	91-2114-311083
E-Mail :	PDC@meritor.com

DIRECTORS

Name :

Mr. Pedro Neto Ferro

Designation :

Additional Director

Address :

506, Hung, PT Nan Road -1-3102 Shanghai – 200040, China

Date of Birth/Age :

26.11.1958

Date of Appointment :

29.11.2011

Din No.:

05134073

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L51909KA1981PLC004198	AUTOMOTIVE AXLES LIMITED	Director	28/11/2011	28/11/2011	-	Active	NO
2	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	17/01/2012	29/11/2011	-	Active	NO

Name :

Mr. Babasaheb Neelkanth Kalyani

Designation :

Director

Address :

“Amit”, 221/A, Kalyani Nagar, Yerawada, Pune – 411006, Maharashtra, India

Date of Birth/Age :

07.01.1949

Date of Appointment :

25.03.1999

Din No.:

00089380

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L27104MH1973PLC016350	KALYANI STEELS LIMITED	Director	15/02/1984	15/02/1984	-	Active	NO
2	L15421PN1939PLC006738	THE UGAR SUGAR WORKS LIMITED	Director	31/01/1986	31/01/1986	19/03/2010	Active	NO
3	L24200MH1988PTC048028	HIKAL LIMITED	Director	5/2/1992	5/2/1992	-	Active	NO
4	L25209PN1961PLC012046	BHARAT FORGE LIMITED	Managing director	30/03/2008	30/03/1993	-	Active	NO
5	U29303PN1996PLC096395	KALYANI HAYES LEMMERZ LIMITED	Director	18/01/1996	18/01/1996	-	Active	NO
6	U91110PN1965NPL018870	ASSOCIATION OF INDIAN FORGING INDUSTRY	Director	29/12/1997	29/12/1997	-	Active	NO
7	L51909KA1981PLC004198	AUTOMOTIVE AXLES LIMITED	Director	5/3/1998	5/3/1998	-	Active	NO
8	U85110KA1996PLC019619	NANDI INFRASTRUCTURE CORRIDOR ENTERPRISE LIMITED	Director	19/02/1999	19/02/1999	-	Active	NO
9	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	25/03/1999	25/03/1999	-	Active	NO
10	U27106PN1998PTC012742	CARPENTER KALYANI SPECIAL ALLOYS PRIVATE LIMITED	Director	2/8/1999	2/8/1999	24/12/2009	Active	NO
11	U27105PN1998PLC012724	KALYANI CARPENTER SPECIAL STEELS LIMITED	Whole-time director	2/8/2009	2/8/1999	-	Active	NO
12	L40108PN2000PLC015323	BF UTILITIES LIMITD	Director	15/09/2000	15/09/2000	-	Active	NO
13	U72900MH2000PTC140702	EPICENTER TECHNOLOGIES PRIVATE LIMITED	Director	6/10/2000	6/10/2000	-	Active	NO
14	U74999PN2003PLC018350	TRUE VALUE HOLDINGS LIMITED	Director	12/9/2003	12/9/2003	9/7/2010	Active	NO
15	U99999MH1956NPL009708	THE INDO GERMAN CHAMBER OF COMMERCE	Director	28/09/2005	28/09/2005	-	Active	NO
16	U85110KA2000PLC026939	NANDI ECONOMIC CORRIDOR ENTERPRISES LIMITED.	Director	30/09/2006	20/01/2006	-	Active	NO
17	U65991MH2002GOI137868	UTI TRUSTEE COMPANY PRIVATE LIMITED	Director	26/09/2006	27/03/2006	23/08/2011	Active	NO
18	U31909PN2006PLC129138	BF SYSTEMS LIMITED	Director	29/09/2006	29/09/2006	-	Strike off	NO
19	U45203PN2008PTC131242	KHED ECONOMIC INFRASTRUCTURE PRIVATE LIMITED	Director	4/1/2008	4/1/2008	-	Active	NO
20	U70102PN2008PLC131478	KHED DEVELOPERS LIMITED	Director	21/02/2008	21/02/2008	24/12/2009	Active	NO
21	U40102PN2007PTC130881	KENERSYS INDIA PRIVATE LIMITED	Nominee director	13/05/2008	13/05/2008	30/03/2009	Active	NO
22	U40106DL2008PLC179793	BF-NTPC ENERGY SYSTEMS LIMITED	Nominee director	19/06/2008	19/06/2008	-	Active	NO
23	L65993PN2009PLC134021	BF INVESTMENT LIMITED	Director	22/11/2010	26/05/2009	-	Active	NO
24	U29128DL2010PLC197806	KALYANI ALSTOM POWER LIMITED	Director	6/7/2011	8/1/2010	-	Active	NO
25	U29111DL2010FLC197807	ALSTOM BHARAT FORGE POWER LIMITED	Director	8/1/2010	8/1/2010	-	Active	NO
26	U45203PN2010PLC136755	BF INFRASTRUCTURE LIMITED	Director	2/8/2011	5/7/2010	-	Active	NO
27	U35923PN2010PTC137191	IMPACT AUTOMOTIVE SOLUTIONS PRIVATE LIMITED	Director	25/08/2010	25/08/2010	-	Active	NO
28	U85100PN2011NPL141427	INSTITUTE FOR PROSTATE CANCER	Director	22/11/2011	22/11/2011	-	Active	NO

Name :

Mr. Prakash Chandrashekhar Shalerao

Designation :

Director

Address :

Varsha Park, Baner Road, Aundh, Pune – 411045, Maharashtra, India

Date of Birth/Age :

04.03.1950

Date of Appointment :

25.03.1999

Din No.:

00037754

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L25209PN1961PLC012046	BHARAT FORGE LIMITED	Director	1/4/1998	1/4/1998	-	Active	NO
2	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	25/03/1999	25/03/1999	-	Active	NO
3	U27105PN1998PLC012724	KALYANI CARPENTER SPECIAL STEELS LIMITED	Director	1/4/1999	1/4/1999	15/02/2008	Active	NO
4	U85110KA2000PLC026939	NANDI ECONOMIC CORRIDOR ENTERPRISES LIMITED	Director	23/12/2003	23/12/2003	-	Active	NO
5	U85110KA1996PLC019619	NANDI INFRASTRUCTURE CORRIDOR ENTERPRISE LIMITED	Director	21/04/2004	21/04/2004	-	Active	NO
6	L29150PN1989PLC054143	SANGHVI MOVERS LIMITED	Director	2/9/2006	2/9/2006	6/12/2010	Active	NO
7	L51909KA1981PLC004198	AUTOMOTIVE AXLES LIMITED	Director	21/01/2011	12/1/2007	-	Active	NO
8	U70101PN1993PLC072139	KUMAR URBAN DEVELOPMENT LIMITED	Director	3/2/2007	3/2/2007	6/12/2010	Active	NO
9	U74999MH1986PTC045105	STARFLOWER CONSULTANTS PRIVATE LIMITED	Director	25/10/2010	25/10/2010	-	Converted to LLP and dissolved	NO
10	U74999MH1995PTC092086	PADMAPANI CONSULTANTS PRIVATE LIMITED	Director	25/10/2010	25/10/2010	-	Converted to LLP and dissolved	NO

Name :

Mr. Matthew Steven Wolfe

Designation :

Additional director

Address :

Room No. 101, No.271, Lane 650BI, Yun Road Pudong New Area, Shanghai – 201206, China

Date of Birth/Age :

08.10.1973

Date of Appointment :

12.04.2011

Din No.:

03519690

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L25209PN1961PLC012046	BHARAT FORGE LIMITED	Director	1/4/1998	1/4/1998	-	Active	NO
2	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	25/03/1999	25/03/1999	-	Active	NO
3	U27105PN1998PLC012724	KALYANI CARPENTER SPECIAL STEELS LIMITED	Director	1/4/1999	1/4/1999	15/02/2008	Active	NO
4	U85110KA2000PLC026939	NANDI ECONOMIC CORRIDOR ENTERPRISES LIMITED.	Director	23/12/2003	23/12/2003	-	Active	NO
5	U85110KA1996PLC019619	NANDI INFRASTRUCTURE CORRIDOR ENTERPRISE LIMITED	Director	21/04/2004	21/04/2004	-	Active	NO
6	L29150PN1989PLC054143	SANGHVI MOVERS LIMITED	Director	2/9/2006	2/9/2006	6/12/2010	Active	NO
7	L51909KA1981PLC004198	AUTOMOTIVE AXLES LIMITED	Director	21/01/2011	12/1/2007	-	Active	NO
8	U70101PN1993PLC072139	KUMAR URBAN DEVELOPMENT LIMITED	Director	3/2/2007	3/2/2007	6/12/2010	Active	NO
9	U74999MH1986PTC045105	STARFLOWER CONSULTANTS PRIVATE LIMITED	Director	25/10/2010	25/10/2010	-	Converted to LLP and dissolved	NO
10	U74999MH1995PTC092086	PADMAPANI CONSULTANTS PRIVATE LIMITED	Director	25/10/2010	25/10/2010	-	Converted to LLP and dissolved	NO

Name :

Mr. Chrishan Anton Se Bastian Villavarayan

Designation :

Director

Address :

No. 246 A, Prestige O Zone, White Field, Bangalore – 560056, Karnataka, India

Date of Birth/Age :

12.06.1970

Date of Appointment :

24.04.2010

Din No.:

03020467

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	24/04/2010	24/04/2010	-	Active	NO
2	U34200KA2008PTC047758	Meritor Commercial Vehicle Systems India Private Limited	Director	29/03/2011	19/05/2010	9/2/2012	Active	NO

Name :

Mr. Sundararajan Raghunathan

Designation :

Additional Director

Qualification :

B. Tech, Mechanical

Experience :

31 Years

Address :

No. 57/A, First Floor, Second Cross, Opposite Mahajana High School, Jayalaxmipuram, Mysore – 570012, Karnataka, India

Date of Birth/Age :

01.10.1957

Date of Appointment :

12.04.2011

Din No.:

03518628

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	17/01/2012	12/4/2011	-	Active	NO

KEY EXECUTIVES

Name :	K. Sarina Chouta Harish
Designation :	Secretary
Address :	No. 5, “Devi Krupa”, Temple Road, Jayalakshmipuram, Mysore – 570012, Karnataka, India
Date of Birth/Age :	31.01.1969
Date of Appointment :	24.07.2003
Pan No.:	ABMPH0063K
Email:	Sarina.Choutaharish@ArvinMeritor.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Bhalerao Prakash Chandrashekhar	1
Seth Surendra Singh	1
Sapre Mohan	1
Chittur Kalyan Krishnan Sabareeshan	1
Mecci Ikramulla	1
Nayak Radhesh	1
Meritor Heavy Vehicle Systems LLC, USA	1239300
B F Investment Limited, India	1190694
Total	2430000

As on 30.09.2011

Equity share Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	51.00
Bodies corporate	48.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in design, research and development, sales and marketing, including export of automotive components and aggregates thereof.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Drive Axies (Rear)	870850.00
Brakes	870839.00
Others parts	870899.00

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	HDFC Bank Limited, Saraswathipuram, Mysore, Karnataka, India State Bank of India, Commercial Branch, Saraswathipuram, Mysore, Karnataka, India

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	“Deloitte Centre”, Anchorage II, No.100/2, Richmond Road, Bangalore – 560025, Karnataka, India
PAN. No.:	AACFD3771D
Holding Company :	Meritor Heavy Vehicles Systems, LLC, USA
Ultimate Holding Company	Meritor, Inc.USA
Enterprises under Common Control:	· Automotive Axies Limited, Mysore · Bharat Forge Limited, Pune
Fellow Subsidiaries:	Meritor HVS Cameri SPA, Italy Meritor Automotive Inc, USA Meritor HVS Australia Limited, Australia Meritor Heavy Vehicles Systems, Brazil ArvinMeritor CVS Axies, France ArvinMeritor Vehicles Systems (Wuxi) Company Limited, China Sistemas Automotrics de Mexico S.A. de C.V., Mexico ArvinMeritor CV Aftermarketk AG, Switzerland

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2430000	Equity Shares	Rs.10/- each	Rs.24.300 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.09.2011	31.09.2010	31.09.2009
SHAREHOLDERS FUNDS
1] Share Capital		24.300	24.300	24.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		456.248	365.208	282.808
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		480.548	389.508	307.108
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	5.400	7.900
TOTAL		480.548	394.908	315.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		193.494	62.293	68.167
Capital work-in-progress		1.005	0.545	0.285
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		3.300	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	285.491	99.530	58.007
	Sundry Debtors	1743.815	1054.053	584.848
	Cash & Bank Balances	298.816	316.919	571.737
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	31.085	22.945	33.600
Total Current Assets		2359.207	1493.447	1248.192
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1866.051	1067.224	645.702
	Other Current Liabilities	4.148	4.352	1.620
	Provisions	206.259	89.801	354.314
Total Current Liabilities		2076.458	1161.377	1001.636
Net Current Assets		282.749	332.070	246.556
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		480.548	349.908	315.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.09.2011	31.09.2010	31.09.2009
	SALES
		Income	11425.650	7358.438	2918.146
		Other Income	74.337	65.679	51.563
		TOTAL (A)	11499.987	7424.117	2969.709
Less	EXPENSES
		Cost of Goods Sold	10584.450	6772.848	2629.034
		Employee related Expenses	72.674	32.768	0.000
		Administration selling other expenses	212.527	140.341	93.066
		TOTAL (B)	10869.651	6945.957	2722.100
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		630.336	478.160	247.609
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.333	7.573	8.822
	PROFIT BEFORE TAX (E-F) (G)		600.003	470.587	238.787
Less	TAX (H)		198.300	161.500	82.355
	PROFIT AFTER TAX (G-H) (I)		401.703	309.087	156.432
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		160.676	117.276	369.175
Less	APPROPRIATIONS
		Interim Dividend		145.800	267.300
		Tax on Interim Dividend		24.216	45.428
		Proposed Dividend	310.663	48.600	68.040
		Provision for Tax on Proposed Dividend		8.071	11.563
		Transfer to General Reserve	40.200	31.000	16.000
	BALANCE CARRIED TO THE B/S		219.516	168.676	117.276
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export Sales	613.824	302.869	248.282
	TOTAL EARNINGS		613.824	302.869	248.282
	IMPORTS
		Import of R and D Spares	1.309	0.886	16.863
		Import of Traded Goods	1.391	0.000	0.000
		Import of R and D Maintenance Spares	0.000	0.000	0.037
	TOTAL IMPORTS		2.700	0.886	16.863
	Earnings Per Share (Rs.)		165.31	127.20	64.38

KEY RATIOS

PARTICULARS		31.09.2011	31.09.2010	31.09.2009
PAT / Total Income	(%)	3.49	4.16	5.27
Net Profit Margin (PBT/Sales)	(%)	5.25	6.39	8.18
Return on Total Assets (PBT/Total Assets}	(%)	26.63	30.24	18.14
Return on Investment (ROI) (PBT/Networth)		1.25	1.21	0.78
Debt Equity Ratio (Total Liability/Networth)		4.32	2.98	3.26
Current Ratio (Current Asset/Current Liability)		1.14	1.28	1.25

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Economy:

The year started on a high note but mild pessimism crept in gradually due to a combination of domestic and international factors. By the end of the year, both the government and central bank are seen battling multiple issues that plague the economy – high inflation, low industrial growth, weak currency and global economic uncertainty.

The first quarter registered a GDP growth of 8.2%, but the growth decreased in the subsequent quarters: 7.8% in the second and 7.7% in the third quarter. GDP growth of year under report is expected to be less than 7.5%. This is substantially lower than what was expected at the beginning of the year.

High inflation persisted throughout the year (Oct’10 – Sep’11) and this prompted the central bank to increase the interest rates 13 times in the last 18 months. Increase in interest rates has hurt some sectors of the economy, but RBI has clearly indicated that controlling inflation is its priority. The interest rates have reached its peak and further increase of policy rates can not be ruled out.

Index of industrial production, an indicator of industrial growth, showed strong growth in the first six months (Oct’10 – Mar’11) after which the growth moderated. The recent slowdown in industrial activity can be partially attributed to the high interest rates. Agriculture performed well in the first two quarters posting growth rates above 8% and the third quarter saw a moderated growth. Services sector continues to remain strong and continuously exceeded the overall growth rate of the economy.

Indian Rupee (INR) remained strong staying around Rs. 45 per USD for most of the year but depreciated sharply in the last two months of the year. Weak currency has made the imports costlier and for a country which imports more than 70% of its crude oil requirements, this could put a significant strain on the exchequer. The year under report saw spectacular performance on the export front, laying ground to the idea that there is a structural increase to Their export capability.

In light of the above, The company remains cautiously positive about the growth of CV industry in the coming year.

Industry Structure and Developments:

Commercial vehicles:

The Commercial vehicle industry saw robust growth in the year under report (Oct’10 to Sep’11). Medium & Heavy commercial vehicle

production (>7.5T) grew by 14% to cross 3,61,000 units in FY11.

M&HCV Domestic sales posted a growth of 9% to cross 3,31,000 units. Strong economic growth seen in the first half of the year and the robust growth of construction industry has pushed the CV sales. Also, the enforcement of overloading ban in states like Uttar Pradesh, Madhya Pradesh & Bihar have aided in the sales growth.

Though there were uncertainties in the global macro economic environment, the export market for M&HCVs saw a growth of 25% to surpass 29,000 units. The weakening of rupee in the last two months has made the export market more attractive.

Year (Oct-Sep)	2010-11	2009-10	B(W)	% growth
7.5 T – 12 T	67014	59892	7122	11%
> 12 T	293347	257502	35845	13%

As large fleet owners (>20 vehicles) gain more share in the transportation industry, the adoption of hub & spokes model is gaining ground. This is pushing sales to both ends of the tonnage spectrum. The sales this year falls in the continuing trend of MCV’s losing share to HCVs & LCVs. The 31T vehicles had the highest Y-O-Y growth in MHCV category and tractor segment saw an impressive growth. Also, the sub 3.5T segment witnessed phenomenal growth. Improving road infrastructure, organized retail and emergence of Goods & Service tax will aid the sales momentum, going forward.

The Indian CV market currently dominated by three players will witness intensified competition in the future due to emergence of new entrants. This year saw good number of new models being launched by OEMs. This increased competition will lead to more choices to customer and also put considerable pressure on the margins.

Outlook:

High interest rate and fuel price act as dampeners to the growth of CV industry in the short term. Retail prices of diesel were increased this year and the possibility of further revision to reduce the subsidy burden of the government could become a dampener for CV sales.

In its second quarterly review of credit policy, RBI had revised its GDP growth projection downward to 7.6 % from its earlier estimate of 8 %. In spite of the negative sentiment in the last quarter, the CV industry has performed well. They expect CV market to remain slightly sluggish in short term and the rebound is expected in Jan-Mar’12 quarter. The possible introduction of Goods and Service tax and relaxation of FDI limits for retail industry could give a positive thrust to the transportation industry.

After rising significantly over the past 15-18 months, commodity prices are showing early signs of cooling off. This may release some pressure on the margins going forward, especially in a moderating demand environment, when pricing power is limited

FIXED ASSETS

· Land

· Building

· Research and Development Equipments

· Furniture

· Office Equipments

· Computers

· Vehicles

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.52.52
UK Pound	1	Rs.85.49
Euro	1	Rs.69.61

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.