MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	HONDA SIEL CARS INDIA LIMITED
Registered Office :	3 and 4/48, Enkay House, 2^nd Floor, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi – 110021
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.12.1995
Com. Reg. No.:	55-203983
Capital Investment / Paid-up Capital :	Rs. 3600.000 Millions
CIN No.: [Company Identification No.]	U15114DL1995PLC203983
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Motors Cars.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 28000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a joint venture Honda motor company limited japan and siel limited a siddharth shriram group company. Profitability of the company is under pressure. However, trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitment. 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 :	3 and 4/48, Enkay House, 2^nd Floor, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi – 110021, India
Tel. No.:	91-11-41680694
Fax No.:	91-11-41680696
E-Mail :	apsingh@hondacarindia.com
Website :	http://www.hondacarindia.com
Factory :	Plot No. A-1, Sector 40/ 41, Surajpur-Kasna Road, Greater Noida Industrial Development Area, Distt. Gautam Budh Nagar- 201 306, Uttar Pradesh, India
Tel. No.:	91-120 - 234 1313/ 1321/ 1327/ 1801/ 1806/ 1802
Fax No.:	91-120 – 2341261/ 300
Zonal Mumbai Office :	D-126, TTC Industrial Area, MIDC Shiravane, Nerul, Thane-Belapur Road, Navi Mumbai- 400706, Maharashtra, India
Tel. No.:	91-22-67895000/ 5001/ 5002/ 5003
Zonal Chennai Office :	Old No. 26/New No. 46, Opp. ICICI Bank, Ambattur Industrial Estate, Ambattur – 600058, Tamilnadu, India
Tel. No.:	91-44-42083774/75/76/78

DIRECTORS

As on 10.08.2011

Name :

Mr. Siddharth Shriram

Designation :

Chairman Cum Managing Director

Address :

3-A, The Green, Opposite Airforce Station Rajokari No – 110038, New Delhi, India

Date of Birth/Age :

18.01.1945

Date of Appointment :

29.12.1997

DIN No.:

00027750

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	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	19/09/1985	19/09/1985	-	Active	NO
2	U27109DL1901PLC022060	HONDA SIEL POWER PRODUCTS LIMITED	Director	19/09/1985	19/09/1985	-	Not Available for eFiling	NO
3	U74999DL1996PTC075652	CERATIZIT INDIA PRIVATE LIMITED	Director	22/01/1996	22/01/1996	-	Active	NO
4	L74899DL1954PLC002985	USHA INTERNATIONAL LIMITED	Director	28/05/1996	28/05/1996	-	Amalgamated	NO
5	U51909DL1980PTC010166	MADAN SHREE ENTERPRISES PRIVATE LIMITED	Director	21/08/1996	21/08/1996	-	Dormant	NO
6	U74899DL1958PTC002892	M.S.R. ENTERPRISES PRIVATE LIMITED	Director	21/08/1996	21/08/1996	-	Amalgamated	NO
7	U74210DL1935PLC007123	USHA INTERNATIONAL LIMITED	Director	30/08/1996	30/08/1996	-	Active	NO
8	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	29/12/1997	29/12/1997	-	Active	NO
9	L15421DL2002PLC118184	MAWANA SUGARS LIMITED	Managing director	1/10/2006	26/12/2002	-	Amalgamated	NO
10	U67120DL2003PLC118675	SIEL HOLDINGS LIMITED	Director	28/01/2003	28/01/2003	24/04/2007	Amalgamated	NO
11	L74100DL1961PLC003413	MAWANA SUGARS LIMITED	Managing director	30/09/2003	30/09/2003	-	Active	NO
12	U59199DL2003PLC122772	SHRIRAM FUEL INJECTION INDUSTRIES LIMITED	Director	22/10/2003	22/10/2003	-	Amalgamated	NO
13	U65993DL1989PTC035857	PERENNIAL INVESTMENTS PRIVATE LIMITED	Director	9/01/2004	9/01/2004	-	Amalgamated	NO
14	U67120DL2005PTC139480	ZAFIRA HOLDINGS PRIVATE LIMITED	Director	9/08/2005	9/08/2005	-	Dormant	NO
15	U74899DL2006PLC144412	SIEL EDIBLE OILS LIMITED	Director	3/01/2006	3/01/2006	-	Active	NO
16	U51109DL1984PTC195049	GREENFIELDS COMMERCIAL PRIVATE LIMITED	Director	24/08/2007	23/08/2006	-	Amalgamated	NO
17	U40105DL1998PTC094903	VV SERVOTECH PRIVATE LIMITED	Director	20/08/2007	4/09/2006	-	Active	NO
18	U45209DL1994PLC057359	SIEL INDUSTRIAL ESTATE LIMITED	Director	28/09/2011	25/10/2010	-	Active	NO

Name :

Mr. Takashi Nagai

Designation :

Whole time director

Address :

Hotel LE Merioelem Windsor Place, Jampath, New Delhi – 110001, India

Date of Birth/Age :

07.02.1959

Date of Appointment :

01.04.2010

DIN No.:

01493933

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	L35911DL1984PLC017354	HERO MOTOCORP LIMITED	Director	24/07/2007	11/05/2007	8/08/2011	Active	NO
2	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	19/08/2010	1/04/2010	1/04/2012	Active	NO
3	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Managing director	19/08/2010	1/04/2010	-	Active	NO
4	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	19/08/2010	1/04/2010	31/03/2012	Active	NO

Name :

Mr. Haruhito Murai

Designation :

Whole time director

Address :

House No. E -123, The Icon DLF City, Phase – V, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

06.07.1955

Date of Appointment :

01.04.2010

DIN No.:

03022453

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	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	19/08/2010	1/04/2010	-	Active	NO

Name :

Mr. Raman Sharma

Designation :

Whole Time Director

Address :

House No. 70, Sector -9, Faridabad-121006, Haryana, India

Date of Birth/Age :

12.01.1965

Date of Appointment :

01.04.2007

DIN No.:

01381382

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	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	8/09/2007	1/04/2007	-	Active	NO
2	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	19/08/2010	1/04/2010	-	Active	NO

Name :

Mr. Katsuhiro Harda

Designation :

Whole-Time Director

Address :

W- 148A, Second Floor, Greater Kailash, New Delhi – 110048, India

Date of Birth/Age :

15.03.1960

Date of Appointment :

01.04.2009

DIN No.:

02594482

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	U29219DL2006PTC155954	GLOBAL AUTO-PARTS ALLIANCE INDIA PRIVATE LIMITED	Director	2/11/2009	31/03/2009	30/04/2012	Active	NO
2	U05004DL2007PTC169044	RAJASTHAN PRIME STEEL PROCESSING CENTER PRIVATE LIMITED	Director	30/10/2009	1/04/2009	1/04/2012	Active	NO
3	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	6/06/2009	1/04/2009	31/03/2012	Active	NO
4	U35914DL2006PTC150369	BESTEX MM INDIA PRIVATE LIMITED	Director	18/09/2009	27/08/2009	-	Active	NO

Name :

Mr. Jiro Morisawa

Designation :

Whole Time Director

Date of Appointment :

01.04.2011

DIN No.:

03493736

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Additional director	1/04/2011	1/04/2011	-	Active	NO
2	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	10/08/2011	1/04/2011	-	Active	NO

Name :

Mr. Seki Inaba

Designation :

Whole-Time Director

Address :

House No. 6/18, Second Floor, Shanti Niketan, New Delhi – 110021, India

Date of Birth/Age :

01.08.1966

Date of Appointment :

01.04.2011

DIN No.:

03502256

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	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	10/08/2011	1/04/2011	31/03/2012	Active	NO

Name :

Mr. Toshio Sugivana

Designation :

Director

Address :

House No. C -730 First Floor, New Friends Colony, New Delhi - 110065

Date of Birth/Age :

12.03.1956

Date of Appointment :

01.04.2011

DIN No.:

03504548

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Additional director	1/04/2011	1/04/2011	-	Active	NO
2	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	10/08/2011	1/04/2011	-	Active	NO

Name :

Mr. Koichiro Kageta

Designation :

Director

Address :

Hose No B- 645, 1^st Floor, Greater Kailash, New Delhi – 110048, India

Date of Appointment :

01.04.2011

DIN No.:

03493628

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Additional director	1/04/2011	1/04/2011	-	Active	NO
2	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	10/08/2011	1/04/2011	-	Active	NO

Name :

Mr. Hindeyoshi Takarada

Designation :

Nominee Directors

Address :

C-9/5, First Floor, Vasant Vihar, New Delhi-110057, India

Date of Birth/Age :

18.10.1963

Date of Appointment :

31.03.2011

DIN No.:

02172438

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	29/09/2008	2/06/2008	31/03/2011	Active	NO
2	U15114DL1995PLC203983	HONDA SIEL CARS INDIA LIMITED	Nominee director	19/06/2008	2/06/2008	31/03/2011	Active	NO

Name :

Mr. Tatsuya Natsume

Designation :

Whole Time Director

Address :

B/18, Second Floor, Shanti Niketan, New Delhi-110021, India

Date of Birth/Age :

16.03.1964

Name :

Mr. Akira Tahiguchi

Designation :

Director

Name :

Mr. Keiichi Yasuda

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Arun Pratap Singh
Designation :	Secretary
Address :	C – 100, Krishna Apartments, Residency Sector- I, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	01.02.1972
Date of Appointment :	20.08.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.08.2011

Names of Shareholders	No. of Shares
Honda Motor Company Limited, Japan	350639995
Usha International Limited	9360000
Honda Motor Company Limited Jointly With Katsuhiro Harada	01
Honda Motor Company Limited Jointly With Tarashi Nsgai	01
Honda Motor Company Limited Jointly With Murai Haruhito	01
Honda Motor Company Limited Jointly With Seki Inaba	01
Honda Motor Company Limited Jointly With Jiro Morisawa	01
Total	360000000

Equity Share Break up (Percentage of Total Equity)

As on 10.08.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	97.40
Bodies corporate	2.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Motors Cars.

Products :

Product Description	ITC Code No
Motor Cars	87032291/87032391

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Cars	Nos	100,000	65,550

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Mizuho Corporate Bank Limited, 4^th Floor, East Tower, Sood Tower, 25, Barakhamba Road, New Delhi – 110001, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Other external commercial borrowings secured	1063.880	952.468
Working capital loans banks secured	4069.050	2393.559
Total	5132.930	3346.027
Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks unsecured	5882.328	2742.212
Rupee term loans others unsecured	890.400	0.000
Total	6772.728	2742.212

Banking Relations :	--
Auditors :
Name :	A. F. Ferguson and Company Chartered Accountants
Address :	9, Scindia House, Kasturba Gandhi Marg, New Delhi – 110001, India
PAN.:	AABFA5846M
Holding Company:	Honda Motor Company Limited, Japan
Joint Venture :	Global Auto Parts Alliance India Private Limited Rajasthan Prime Steel Processing Center Private Limited Bestex MM India Private Limited
Fellow Subsidiaries :	· American Honda Motor Company, Inc., United State · Asian Honda Motor Company Limited, Thailand · Honda Access Asia and Oceania Company Limited, Thailand · Honda Autoparts Manufacturing (M) Sdn. Bhd., Malaysia · Honda Automobile (Thailand) Company Limited, Thailand · Honda Cars Philippines, Inc., Philippines · Honda Engineering Asian Company Limited, Thailand · Honda Express Logistics India Private Limited, India · Honda R and D Company Limited, Japan · Honda R and D (India) Private Limited, India · Honda Siel Power Products Limited, India · Honda Trading (Asia) Company Limited {formerly known as Honda Trading (Thailand) Company Limited.} · Honda Trading China Company Limited, China · Honda Trading Corporation India Private Limited, India · Honda Trading Corporation, Japan · Honda Trading Europe Limited, Italy

CAPITAL STRUCTURE

As on 10.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000000	Equity Shares	Rs.10/- each	Rs. 10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
569973753	Equity Shares	Rs.10/- each	Rs. 5699.737 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000,000	Equity Shares	Rs.10/- each	Rs. 10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
360,000,000	Equity Shares	Rs.10/- each	Rs. 3600.000 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		3600.000	3600.000	3600.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3452.761	5581.149	5934.304
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7052.761	9181.149	9534.304
LOAN FUNDS
1] Secured Loans		5132.930	3346.027	2246.149
2] Unsecured Loans		6772.728	2742.212	7168.084
TOTAL BORROWING		11905.658	6088.239	9414.233
DEFERRED TAX LIABILITIES			0.000	0.000
TOTAL		18958.419	15269.388	18948.537
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9665.159	12198.947	11581.451
Capital work-in-progress		5632.840	1611.623	4163.281
INVESTMENT		230.599	256.437	256.437
DEFERREX TAX ASSETS		0.000	1332.970	1263.744
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6948.365	5167.701	3038.594
	Sundry Debtors	2935.144	540.619	655.201
	Cash & Bank Balances	204.311	387.650	324.873
	Other Current Assets	0.00	0.000	0.000
	Loans & Advances	2851.055	2922.773	3223.920
Total Current Assets		12938.875	9018.743	7242.588
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9303.381	8991.419	5225.092
	Other Current Liabilities	46.279	18.771	176.182
	Provisions	159.394	139.142	157.690
Total Current Liabilities		9509.054	9149.332	5558.964
Net Current Assets		3429.821	(130.589)	1683.624
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		18958.419	15269.388	18948.537

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	39368.514	40811.068	34834.668
		Other Income	872.753	1233.271	426.133
		TOTAL (A)	40241.267	42044.339	35260.801
Less	EXPENSES
		Consumption material changes inventories	31063.317	33225.929
		Administrative selling other expenses	7028.101	6155.079
		TOTAL (B)	38091.418	39381.008	36095.012
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2149.849	2663.331	(834.211)
Less	FINANCIAL EXPENSES (D)		216.678	181.045	164.698
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1933.171	2482.286	(998.909)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2728.589	2904.670	1934.423
	PROFIT/LOSS BEFORE TAX (E-F) (G)		(795.418)	(422.384)	(2933.332)
Less	TAX (I)		(1332.970)	(69.226)	(967.692)
	PROFIT/LOSS AFTER TAX (G-I) (J)		(2128.388)	(353.158)	(1965.640)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5581.149	5934.307	7899.947
	BALANCE CARRIED TO THE B/S		3452.761	5581.149	5934.307
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	NA	265.625	12.258
	TOTAL EARNINGS		NA	265.625	12.258
	IMPORTS
		Raw Materials		13055.053	10841.014
		Stores & Spares		508.590	1516.095
		Capital Goods		63.664	4030.318
	TOTAL IMPORTS		NA	13627.307	16387.427
	Earnings/Loss Per Share (Rs.)		(5.91)	(0.98)	(5.46)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(5.28)	(0.83)	(5.57)
Net Profit Margin (PBT/Sales)	(%)	(2.02)	(1.03)	(8.42)
Return on Total Assets (PBT/Total Assets}	(%)	(6.14)	(4.68)	(40.50)
Return on Investment (ROI) (PBT/Networth)		(0.11)	(0.05)	(0.30)
Debt Equity Ratio (Total Liability/Networth)		1.34	0.99	0.58
Current Ratio (Current Asset/Current Liability)		1.36	0.98	1.30

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

COMPANY’S OPERATIONS

For the Company, it was a year of consolidating and strengthening its systems and processes for the big leap in future, expected with the forthcoming launch of ‘BRIO’, the new small car, in the second half of 2011-12. The key areas, in which the Company has focussed and endeavoured to strengthen its basic constitution are, the increased localisation levels, developing local suppliers and building capacity for critical components such as power train parts at its Plant at Tapukara, so as to minimize the risk of foreign exchange fluctuations and dependence on imports.

In addition, focus has also been on strengthening the in-house cost constitution through sweating of existing assets and higher production efficiency at its Plant at Greater Noida. The above efforts will help the Company to realize the competitive and affordable product price for its customers.

During the financial year 2010-11, in the absence of new models, the Company sold 59,463 units, as against 61,815units during the same period last year. The Company’s performance has been adversely impacted by the rising fuel prices, unfavorable foreign exchange rates, expanding gap between prices of diesel and petrol, and increasing competition through aggressive sales promotion policies prevalent during the year.

However, it is expected that the Company will be able to achieve better performance with appropriate product -specific strategies focused on the customer, and entry into small car segment. But at the same time, the unexpected turn of events posed by the earthquake and tsunami in Japan in March, 2011 is also likely to affect the Company’s operations due to shortage of KD parts and compel the Company, according to the situation, to adjust its business plans for the year 2011-12.

CONTINGENT LIABILITIES:

(a) Claims against the Company not acknowledged as debts:- (Rupees in Thousands) In respect of This year Previous year - excise duty Rs. 6682366.823 Millions - service tax Rs. 220495218.081 Millions - income tax Rs. 20812332017.437 Millions - sales/trade tax Rs. 449941450.165 Millions – entry tax Rs. 3274632.746 Millions – others Rs. 7727072.670 Millions * excludes draft order under section 144C of the Income-tax Act, 1961, received by the Company disallowing expenses amounting to Rs. Rs. 2732.644 Millions (which includes transfer pricing adjustments of Rs. 2428.605 Millions) and the tax amount thereon is Rs. 919.808 Millions. The Company has filed a petition with the Dispute Resolution Panel (DRP) against the said draft order. Pending the decision of the DRP, a final order has not been passed by the assessing officer.

(b) The Company had received orders under section 201 of the Income Tax Act 1961 demanding tax of Rs. 34259.291 Millions and interest thereon of Rs. 13131.319 Millions in aggregate from the Income tax authorities for the financial years 2004-05 to 2009-10 alleging non-deduction of withholding tax on imports/ reimbursements of expenses from/to its associated enterprises. The Company had also received show cause notices, aggregating to Rs 34259.291 Millions, as to why penalty for non-deduction of withholding tax be not levied under section 271C of the Income Tax Act 1961 on the above matter. The Hon’ble Allahabad High Court, while disposing the Company’s writ petitions, vide its order dated 30th May 2011, has set aside the above orders and the penalty notices on the ground of natural justice. However, the tax authorities have been given the liberty to examine the issue afresh and pass orders in accordance with law. Liability arising in the above matters in future, if any, is not ascertainable.

(c) The Company has received various show cause notices for sales / trade tax matters asking for explanations as to why certain amounts (which in view of the management cannot be reliably estimated) should not be paid. As these notices are in the nature of explanations required, the Company does not consider these to constitute a liability of any kind.

(d) The above does not include the demands of customs duty where the Customs and Central Excise Settlement Commission (CCESC) has accepted the Company’s contention and settled the customs duty liabilities on import of drawings under its Technical Collaboration Agreement with Honda Motor Co., Ltd., Japan at Rs. 11.663 Millions, [previous year Rs. 11.663 Millions], (and provided for in the accounts in previous years) and granted immunity from penalty as against the demands by customs authorities of Rs.281.476 Millions (including penalty of Rs.140.738 Millions) [Previous year Rs. 281.476 Millions (including penalty of Rs. 140.738 Millions)], and the customs authorities have preferred writ petitions in the High Court, challenging the orders of CCESC, which are pending disposals.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U15114DL1995PLC203983
Name of the company	HONDA SIEL CARS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	3 and 4/48, Enkay House, 2^nd Floor, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi – 110021, India Email: apsingh@hondacarindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10111742
Type of charge	Book debts
Particular of charge holder	Mizuho Corporate Bank Limited, 4^th Floor, East Tower, Sood Tower, 25, Barakhamba Road, New Delhi – 110001, India Email: ajay.bansal@mizuho-cb.com
Nature of instrument creating charge	Supplemental agreement for hypothecation of stock in trade, book debts and other movable assets for increasing the overall limit
Date of instrument Creating the charge	18.03.2011
Amount secured by the charge	Rs. 2000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction letter no. BPD/ND/248/10-11 and supplemental agreement of loan for increase in the overall limit for secured advances dated 18.03.2011 Terms of Repayment As per sanction letter no. BPD/ND/248/10-11 and supplemental agreement of loan for increase in the overall limit for secured advances dated 18.03.2011 Margin As per sanction letter no. BPD/ND/248/10-11 and supplemental agreement of loan for increase in the overall limit for secured advances dated 18.03.2011 Extent and Operation of the charge Pari-Passu Charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of first charge on pari passu basis on all present and future goods, book debts and other movable assets of the company.
Date of instrument modifying the charge	Overall limit for credit facilities sanctioned to the company enhanced from Rs. 500.000 Millions to Rs.2.000.000 Millions and accordingly charge of mizuho corporate bank limited. By way of hypothecation on goods, book debts and other movable assets of the company stands enhanced to Rs.2000.000 Millions
Particulars of the present modification

Fixed Assets

• Land
• Building
• Plant and Machinery
• Furniture, Fixture and Office Equipments
• Computers and data processing machines
• Vehicles
• Computer Software

WEBSITE DETAILS

COMPANY PROFILE

The was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant.

HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The annual capacity of this facility is 100,000 units. The company’s second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility was inaugurated in September 2008.

Honda Siel Cars India Ltd. launched its much-awaited small car, the Honda Brio (pronounced as Br-ee-o and means “energetic” and “cheerful” in Italian), in the Indian market. The car, offered as the perfect package for a new era, embodies the best of Honda’s technologies to deliver fun and agile driving, fuel-efficiency, spaciousness and safety.

The company’s product range includes Honda Brio, Honda Jazz, Honda City, Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 80%, 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as Completely Built Units. Honda’s models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency.

Environment and Safety

The Honda Group is globally recognized for its concern towards environment, safety and conservation of the society in which it operates. HSCI follows the same in India for achieving high standards in environmental safety in the various processes of car manufacturing.

Honda Assure

Reinforcing its position as a customer centric company, and to enhance ownership experience for Honda car customers, Honda Siel Cars India (HSCI) launched the 'Honda Assure', Honda’s Insurance initiative. Under the Honda Assure program all Honda customers get the benefit of a more transparent, hassle-free transaction and a quick turnaround time on their insurance claims. The entire transaction is routed through an on-line central server which enables HSCI to monitor the overall operations more effectively. Some of the direct benefits to the customers include Cashless Insurance across India, instant policy issuance, and improved turnaround time.

Auto Terrace

Honda's Exchange and Pre-Owned car division Auto Terrace has been in existence ever since the interception of HSCI in India. Present in all major Honda dealers across the country, Auto Terrace presents itself as the one-stop solution for catering to the needs of customers wanting to exchange their existing cars for a New Honda car.

Exclusive Honda Care Program

Honda Care Program is designed to bring an extra measure of security and comfort to being a Honda Owner. It includes additional warranty* of 2 years or 40,000 kms after the new vehicle warranty expires and 24 hrs Roadside Assistance support* for 4 years from the standard warranty start date.

Conditions Apply Sales Network

Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 135 authorised dealership facilities in 83 cities. HSCI dealerships are based on the “3S Facility” (Sales, Service, Spares) format, offering complete range of services to its customers.

PRESS RELEASES

Honda Siel Cars India Limited. registers a growth of 252 % in April 2012

New Delhi, May 1, 2012: The leading manufacturer of premium cars in India, posted a remarkable growth of 252% in April 2012. The company reported sales of 7,075 units in the month of April 2012 as against 2,012 units in the corresponding month last year.

The company sold 28,731 units during January-April 2012 as compared to 16,789 units in the corresponding period last year recording a growth of 71%.

Model wise sales break-up for April 2012:

Brio	3590
Jazz	1300
City	2092
Civic	51
Accord	25
CRV	17

Mr. Hironori Kanayama joins as President and CEO Honda Siel Cars India Limited.

New Delhi, April 2, 2012: The leading manufacturer of premium cars in India, has announced that Mr. Hironori Kanayama assumed the office of President and CEO and Mr. Shigeru Yamazaki as Sr. Vice President and Director, Sales and Marketing with effect from 1st April, 2012.

Mr. Kanayama has been associated with Honda Motor Company for over three decades. Having worked with Honda ventures in different markets like China, Taiwan and Japan, Mr. Kanayama has hands-on experience in the automobile industry. He has spent significant years in China and was the President of Guangqi Honda Automobile Co. Ltd, China from April 2009 to March 2011; General Manager China Operation of Honda Motor Company Ltd from October 2007 and President of Honda Automobile (China) Co. Ltd. from September 2003. He started his career at Honda Motor Company Ltd., Tokyo, Japan in 1976.

Mr. Hironori Kanayama, the New President and CEO, Honda Siel Cars India Ltd., said “India is one of the most dynamic economies and among the fastest growing automobile markets in the world. It remains an extremely important territory for our future growth. We have ambitious plans to grow our operations in India."

“With normal production resuming in our Greater Noida plant from February 2012, we have registered the best ever monthly sales of 11016 units posting a growth of 208% and we expect to continue similar performance in the new financial year", he further added.

Mr. Shigeru Yamazaki, Sr. Vice President and Director, Sales and Marketing was the General Manager of Automobile Business Division, Asian Honda Motor Co., Ltd., since 2009. His primary responsibility had been to establish the future strategy for further expansion of business. He has been associated with Honda Motor Co. for over 29 years. He started his professional career with the company in the year 1982 in Fleet Sales Division. He has significant experience in product planning and has worked extensively in Europe and United States. He was the General Manager, Overseas Sales Operation Office #1 in headquarter before he took over as General Manager of Auto Business division at Asian Honda Motor in April 2009.

Honda Siel Cars India Limited. registers highest ever monthly sales of 11016 units in March 2012

New Delhi, April 1, 2012: The leading manufacturer of premium cars in India recorded its highest ever monthly sales in March 2012. The company sold 11,016 units in March 2012 as against 3,576 units sold during the corresponding month last year registering a growth of 208%.

Expressing delight over the company’s performance Mr Jnaneswar Sen, Sr. Vice President – Sales and Marketing, Honda Siel Cars India Ltd. said, “Our sales performance in the month of March has been very impressive and is a testimony to our customer’s trust and confidence in our product and services. Brio has emerged as an exemplary performer and this steady increase in the sales signifies the success of our models launched recently. This month, our focus was on production of Brio so as to maximize delivery of Brio to all our waiting customers. We are confident that we would continue this performance in the new financial year and Brio and new City will propel growth for Honda in the near future.”

The cumulative sales of the company during the Financial Year period April’11 – Mar’ 12 was 54,427 units as against 59,463 units sold in Apr’10 – Mar ’11. Owing to the Tsunami in Japan and floods in Thailand, Honda Siel Cars India was going through production cut at its Greater Noida plant during the year 2011.

Sales and Distribution Network

Honda Siel Cars India Ltd. expanded its sales and distribution network across the country during the fiscal year 2011–12 to 135 facilities in 83 cities.

Model wise sales break-up for March 2012:

Brio	6355
Jazz	535
City	3920
Civic	104
Accord	101
CRV	01

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 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.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.