MIRA INFORM REPORT

Report Date :

02.10.2012

IDENTIFICATION DETAILS

Name :	EICHER MOTORS LIMITED
Registered Office :	3^rd Floor, Select Citywalk, A-3, District Centre, Saket, New Delhi - 110 017
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	14.10.1982
Com. Reg. No.:	129877
Capital Investment / Paid-up Capital :	Rs.269.900 millions
CIN No.: [Company Identification No.]	L34102DL1982PLC129877
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing of commercial vehicles, motorcycles and engineering components.
No. of Employees :	747 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

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 21600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears outstanding. Profitability appears to be good. Trade relations are reported as praiseworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	AA (Cash Credit Facilities)
Rating Explanation	High degree of safety and very low credit risk.
Date	March, 2012

Rating Agency Name	ICRA
Rating	A1+ (Non Fund Based Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	3^rd Floor, Select Citywalk, A-3, District Centre, Saket, New Delhi - 110 017, India
Tel. No.:	91-11-29563722
Fax No.:	Not Available
E-Mail :	investors@eicher.in
Website :	http://www.eicher.in
Head Office :	Eicher House, 12, Commercial Complex, Greater Kailash - II, (Masjid Moth) New Delhi – 110 048, India
Tel. No.:	91-11-41437600
Fax No.:	91-11-41437700
Corporate Office :	Building No.9A, 16^th Floor, DLF Cyber City, DLF Phase – III, Gurgaon - 122 002, Haryana, India
Tel. No.:	91-124-6701700/ 6701400
Fax No.:	91-124-6701671
Factory 1 :	Two Wheelers Royal Enfield, Thiruvottiyur High Road, Thiruvottiyur, Chennai - 600 019, Tamilnadu, India
Factory 2 :	The CV Unit 102, Industrial Area No.1, Pithampur, Dhar District – 454 775, Madhya Pradesh, India
Factory 3 :	Eicher Engineering Components, S.V. Road, Thane – 400 607, Maharashtra - India
Factory 4 :	Eicher Engineering Components, Indonippon Food Premises No.7, HSIDC, Sector-18, Palam-Gurgoan Road, Gurgaon – 122 015, Haryana, India
Factory 5 :	78-86, Industrial Area No. lllAB Road, Dewas – 455 001, Madhya Pradesh, India
Factory 6 :	SIPCOT Industrial Growth Centre, Plot No-A19/1, Oragadam Village, Tamilnadu, India
Branch Office :	Eicher Engeering Solutions, Tower-B, 16^th Floor, Unitech Cyber Park, Sector-39, Gurgaon – 122 001, Haryana, India

DIRECTORS

As on 31.12.2011

Name :

Mr. S. Sandilya

Designation :

Chairman

Name :

Mr. Siddhartha Lal

Designation :

Managing Director and Chief Executive Officer

Date of Birth/ Age :

38 Years

Qualification :

PGDME, MSc. (Automotive Engg.)

Experience :

15 Years

Date of commencement of employment :

May, 2001

Name :

R.L. Ravichandran

Designation :

Executive Director

Name :

Priya Brat

Designation :

Director

Date of Appointment :

23.07.2001

DIN No.:

00041859

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L34102DL1982PLC129877	EICHER MOTORS LIMITED	Director	23/07/2001	23/07/2001	-	Active	NO
2	L34100DL1955PLC079688	EICHER LIMITED	Director	30/07/2001	30/07/2001	03/05/2007	Amalgamated	NO
3	L24219DL1985PLC020126	DHANUKA AGRITECH LIMITED	Director	28/10/2002	28/10/2002	-	Active	NO
4	L15249UP1933PLC000511	DHAMPUR SUGAR MILLS LIMITED	Director	17/03/2009	13/12/2002	-	Active	NO
5	U15141CT1987PLC003777	ITARSI OILS AND FLOURS LIMITED	Director	12/09/2007	12/09/2007	-	Active	NO
6	L91990UP1990PLC011753	SOUTH ASIAN ENTERPRISES LIMITED	Director	18/09/2010	23/01/2009	-	Active	NO

Name :

Mr. Manepanda Joyappa Subbaiah

Designation :

Director

Date of Appointment :

29.05.2009

DIN No.:

00044799

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L34100DL1955PLC079688	EICHER LIMITED	Director	23/01/2002	23/01/2002	03/05/2007	Amalgamated	NO
2	L34102DL1982PLC129877	EICHER MOTORS LIMITED	Director	29/05/2009	27/02/2002	-	Active	NO
3	L22219DL1955PLC211606	INFOMEDIA PRESS LIMITED	Director	23/02/2004	23/02/2004	21/08/2008	Active	NO
4	L14106UP1995PLC019017	JAIPRAKASH ASSOCIATES LIMITED	Nominee director	23/04/2004	23/04/2004	26/03/2009	Active	NO
5	U27205MH2006PLC166109	TANAAYA GEMS AND JEWELLERY EXPORTS LIMITED.	Additional director	03/07/2007	03/07/2007	10/02/2009	Under liquidation	NO
6	U65993MH1996PLC211198	L&T MUTUAL FUND TRUSTEE LIMITED	Additional director	02/08/2007	02/08/2007	22/02/2012	Active	NO
7	U36991HP1995PLC031163	JAIPRAKASH POWER VENTURES LIMITED	Director	14/07/2008	08/01/2008	-	Amalgamated	NO
8	L45203UP2007PLC033119	JAYPEE INFRATECH LIMITED	Director	21/09/2010	16/11/2009	-	Active	NO

Name :

Mr. Prateek Jalan

Designation :

Director

Date of Appointment :

04.06.2008

DIN No.:

02170139

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L34102DL1982PLC129877	EICHER MOTORS LIMITED	Director	04/06/2008	28/04/2008	-	Active	NO
2	U74900DL2008PLC175032	VE COMMERCIAL VEHICLES LIMITED	Director	29/04/2009	26/05/2008	-	Active	NO
3	U74140DL2003PTC123641	ASSOCIATED ADVISORY SERVICES PRIVATE LIMITED	Director	01/09/2008	01/09/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vinit Kumar
Designation :	Company Secretary
Name :	Mr. Lalit Malik
Designation :	Chief Financial Officer
Date of Birth/ Age :	44 Years
Qualification :	CA and MBA
Experience :	18 Years
Date of commencement of employment :	October, 2010
Name :	Mr. Venkatesh Padmanabhan
Designation :	Chief Executive Officer, Royal Enfield (A Unit of Eicher Motors Limited)
Date of Birth/ Age :	48 Years
Qualification :	B.Sc, MS, Ph.D
Experience :	23 Years
Date of commencement of employment :	December, 2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4330329	16.04
Bodies Corporate	15143	0.06
Any Others (Specify)	10557258	39.10
Trusts	10557258	39.10
Sub Total	14902730	55.20
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14902730	55.20
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3588787	13.29
Financial Institutions / Banks	954	0.00
Insurance Companies	799270	2.96
Foreign Institutional Investors	2117785	7.84
Sub Total	6506796	24.10
(2) Non-Institutions
Bodies Corporate	272758	1.01
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2632839	9.75
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	407750	1.51
Any Others (Specify)	2275610	8.43
Foreign Corporate Bodies	2275610	8.43
Sub Total	5588957	20.70
Total Public shareholding (B)	12095753	44.80
Total (A)+(B)	26998483	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	26998483	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of commercial vehicles, motorcycles and engineering components.

Products :

Item Code No. (ITC Code)	871130
Product Description	Motorcycles
Item Code No. (ITC Code)	846140
Product Description	Components

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Unit	Annual licensed capacity	Annual installed capacity	Actual Production
Two wheelers	Nos.	Not applicable	60000	76000
Manufactured components for sale	Rs. in millions			108.200

Notes:

1. The installed capacities are as certified by the management of the Company on which the auditors have placed reliance without verification.

2. Production figures represent gross production.

3. The figure of production disclosed against manufactured components is the value (as this is more meaningful than the quantities) of such components transferred for sale or sold to other parties.

GENERAL INFORMATION

No. of Employees :

747 (Approximately)

Bankers :

v HDFC Bank Limited

v Indian Overseas Bank

v ICICI Bank Limited

v State Bank of India

v National Westminister Bank Plc, London, UK

Facilities :

Secured Loans	31.12.2011 Rs. In Millions	31.12.2010 Rs. In Millions
Banks
Cash credits	65.000	143.600
Total	65.000	143.600

Unsecured Loans	31.12.2011 Rs. In Millions	31.12.2010 Rs. In Millions
Deposits
Fixed	1.000	5.800
Others	27.100	19.500
Short term loans and advances
Banks	71.700	0.000
Other loans and advances
Interest free sales tax deferral	5.800	5.800
Total	105.600	31.100

Notes:

[1] Rs.65.000 millions (Rs.143.600 millions) secured by a first charge by way of hypothecation of all current assets of the Company.

[2] Repayable within one year Rs.1.000 million (Rs.4.800 millions).

[3] Repayable within one year Rs.1.700 millions (Rs. Nil).

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Gurgaon, Haryana, India
Related Party :	v VE Commercial Vehicles Limited (VECVL) - Subsidiary company v Eicher Engineering Solutions, Inc., U.S.A. (EES, Inc.) - Subsidiary company of VECVL v Hoff Automotive Design (Beijing) Company Limited (Hoff Beijing) - 100% subsidiary company of EES, Inc. v Hoff Auto Design (Shanghai) Company Limited (Hoff Shanghai) - 100% subsidiary company of EES, Inc.

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 millions
101000	Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.10.100 millions
	Total		Rs.310.100 millions

Issued Capital :

No. of Shares	Type	Value	Amount
26992583	Equity Shares	Rs.10/- each	Rs.269.900 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26992583	Equity Shares	Rs.10/- each	Rs.269.900 millions
	Less: Allotment money in arrears (# Rs.0.012 million)		#
	Total		Rs.269.900 millions

Notes:

1) Issued, subscribed and paid up capital:

a) Includes 8,093,950 Equity shares of Rs.10 each allotted as fully paid for consideration other than in cash pursuant to the Composite Scheme of Arrangement relating to demerger of Automobile Undertaking of Eicher Limited into the Company which became effective on August 16, 2004 from the appointed date i.e. April 1, 2003.

b) Includes 14,032,764 equity shares of Rs.10 each allotted as fully paid up for consideration other than in cash pursuant to the Composite Scheme of Arrangement relating to transfer and vesting of Residual Eicher Goodearth Investment Limited (EGIL) into the Company which became effective on November 12, 2009 from the appointed date i.e. January 1, 2009 subsequent to demerger of investment business of EGIL into Eicher Goodearth Private Limited.

2) Under Eicher Employee Stock Option Scheme, the Company has granted (net of options lapsed);

a) 177,000 options on September 30, 2006, exercisable over a period of seven years after vesting on October 1, 2009 at an exercise price of Rs.297 (including premium of Rs.287) per option, out of which 6,400 options are outstanding at year end. During the year, 8,000 equity shares were issued and allotted as fully paid up at an exercise price of Rs.297 (including premium of Rs.287 each) per equity share.

b) 208,900 options on October 22, 2007, exercisable over a period of seven years after vesting on October 23, 2010 at an exercise price of Rs.462 (including premium of Rs.452) per option, out of which 71,900 options are outstanding at year end. During the year 46,800 equity shares were issued and allotted as fully paid up at an exercise price of Rs.462 (including premium of Rs.452 each) per equity share.

c) 40,000 options on April 29, 2010, exercisable over a period of six years after vesting on April 29, 2011 at an exercise price of Rs.695 (including premium of Rs.685) per option are outstanding as at year end.

d) 15,400 options on November 8, 2010, exercisable over a period of seven years after vesting on November 8, 2013 at an exercise price of Rs. 1411 (including premium of Rs.1401) per option are outstanding as at year end.

e) 135,200 options on May 6, 2011, exercisable over a period of seven years after vesting on May 6, 2014 at an exercise price of Rs.1162 (including premium of Rs.1152) per option are outstanding as at year end.

f) Each option entitles the holders thereof to apply for and be allotted one equity share of the face value of Rs.10 each.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		269.900	269.400	126.600
2] Capital Suspense		0.000	0.000	140.300
3] Reserves & Surplus		5130.500	4297.300	3758.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5400.400	4566.700	4025.000
LOAN FUNDS
1] Secured Loans		65.000	143.600	87.500
2] Unsecured Loans		105.600	31.100	36.500
TOTAL BORROWING		170.600	174.700	124.000
DEFERRED TAX LIABILITIES		39.200	22.300	15.600
TOTAL		5610.200	4763.700	4164.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1123.000	717.500	637.700
Capital work-in-progress		152.600	30.600	17.000
INVESTMENT		5180.100	4639.800	2995.500
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	452.700	282.300	220.300
	Sundry Debtors	41.000	36.400	51.900
	Cash & Bank Balances	87.400	111.000	1140.000
	Other Current Assets	2.700	3.300	60.200
	Loans & Advances	779.200	528.100	387.100
Total Current Assets		1363.000	961.100	1859.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1076.500	907.700	668.200
	Other Current Liabilities	571.400	266.800	368.500
	Provisions	560.600	410.800	308.400
Total Current Liabilities		2208.500	1585.300	1345.100
Net Current Assets		(845.500)	(624.200)	514.400
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5610.200	4763.700	4164.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	6664.500	4384.700	3750.900
		Other Income	803.900	583.800	321.400
		TOTAL (A)	7468.400	4968.500	4072.300
Less	EXPENSES
		Manufacturing and other expenses	5899.700	3968.800	3500.800
		TOTAL (B)	5899.700	3968.800	3500.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1568.700	999.700	571.500
Less	INTEREST (D)		20.200	25.700	4.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1548.500	974.000	567.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		130.200	107.900	101.000
	PROFIT BEFORE TAX (E-F) (G)		1418.300	866.100	466.300
Less	TAX (H)		172.800	111.700	91.000
	PROFIT AFTER TAX (G-H) (I)		1245.500	754.400	375.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3131.100	2752.400	3565.000
	Dividend on bought back and extinguished equity shares no longer payable		--	--	7.000
	Corporate dividend tax on above dividend		--	--	1.200
	Premium paid on buy back of equity shares		--	--	(960.500)
Less	APPROPRIATIONS
		Proposed dividend	431.900	296.300	186.900
		Corporate dividend tax	3.900	4.000	8.700
		General reserve account	124.600	75.400	40.000
	BALANCE CARRIED TO THE B/S		3816.200	3131.100	2752.400
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (FOB Value)
		- Two wheelers	434.000	329.600	285.400
		- Gears, spares and components	19.000	17.900	17.200
	TOTAL EARNINGS		453.000	347.500	302.600
	IMPORTS
		Components and spare parts	82.900	34.000	15.000
		Capital Goods	20.100	43.800	24.100
	TOTAL IMPORTS		103.000	77.800	39.100
	Earnings Per Share (Rs.)
	- Basic		46.18	28.17	13.85
	- Diluted		46.00	28.06	13.81

QUARTERLY RESULTS

PARTICULARS	31.03.2012 (1^st Quarter)	30.06.2012 (2^nd Quarter)
Net Sales	2213.600	2550.900
Total Expenditure	1907.000	2161.600
PBIDT (Excl OI)	306.600	389.300
Other Income	264.300	49.400
Operating Profit	570.900	438.700
Interest	0.300	0.400
Exceptional Items	0.000	0.000
PBDT	570.600	438.300
Depreciation	38.300	40.200
Profit Before Tax	532.300	398.100
Tax	79.000	75.100
Provisions and contingencies	0.000	0.000
Profit After Tax	453.300	323.000
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	453.300	323.000

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	16.68	15.18	9.22
Net Profit Margin (PBT/Sales)	(%)	21.28	19.75	12.43
Return on Total Assets (PBT/Total Assets}	(%)	57.05	51.60	18.67
Return on Investment (ROI) (PBT/Networth)		0.26	0.19	0.12
Debt Equity Ratio (Total Liability/Networth)		0.44	0.39	0.36
Current Ratio (Current Asset/Current Liability)		0.62	0.61	1.38

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	Yes
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 involved in	--
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	No
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

FINANCIAL RESULTS

The Company achieved impressive top line growth during the financial year 2011 with total income at 6709.500 MINR. The operating profit before depreciation and interest amounted to 809.800 MINR, which is 12.07% of the total income. After accounting for interest and dividend income of 758.900 MINR, interest expense of 20.200 MINR and depreciation of 130.200 MINR, profit before tax amounts to 1418.300 MINR. Profit after tax amounts to 1245.500 MINR after income tax provision of 172.800 MINR.

BUSINESS PERFORMANCE

Last year, the company’s Royal Enfield unit achieved a landmark by successfully transitioning all its products to the new Unit Construction Engine (UCE) platform and initiated execution on multi-generational plans to expand the production capacity, upgrade quality management system and improve after market aspects of the business. They are confident that you will see significant improvements on all these aspects of the business in the years to come. The results of this plan execution in 2011 were very encouraging.

The Royal Enfield unit was able to produce and sell 42% more motorcycles in 2011 as compared to 2010. Total sales volume of Royal Enfield in 2011 was 74626 motorcycles as compared to 52576 in 2010. Total income for the year was 6709.500 MINR, 51.6% growth over previous year.

Total exports in 2011 were 3200 units, a growth of 21.7% over previous year.

Net Sales of spare parts and services grew to 713.200 MINR in 2011 from 511.900 MINR in the previous year, registering a growth of 39.3% over previous year.

This year the company launched new variants of its Classic 500cc model namely Classic Chrome and Classic Desert Storm. These were received by customers with great enthusiasm. The company continued to expand its sales, distribution and after market network in India and abroad. Royal Enfield products are now sold through 190 outlets in India and exported to 36 countries.

MARKET AND FUTURE PROSPECTS

Both urban and rural markets continue to grow. Continuing urbanisation and expanding service sector continue to create higher incomes and more jobs in urban markets. Rural incomes, aided by various Government projects continue to increase. This has created a long lasting momentum for the growth of motorcycles’ sales.

The company is carrying a very healthy order book for execution in 2012 as well. In order to augment the production for growing market demand, the company has acquired 50 acres of land for construction of its new manufacturing facility at Oragadam, Chennai, Tamilnadu. This will enhance Royal Enfield’s annual production capacity to 150,000 units.

The new facility is expected to commence production in first half of 2013.

VE COMMERCIAL VEHICLES LIMITED (VECV) – A SUBSIDARY COMPANY OF SUBJECT

VECV posted impressive all time high top line during the financial year 2011 with total operating income at 49999.800 MINR as against 39398.500 MINR during the previous financial year ended December 31, 2010, a phenomenal growth of 26.90%. The operating profit before depreciation and interest amounted to 5117.400 MINR at 10.31% of Net Sales as against operating profit before depreciation and interest of 3348.100 MINR during the previous year at 8.55% of Net Sales, a growth of 52.84%. After accounting for interest income of 1032.200 MINR (previous year 764.100 MINR), interest expense of 52.200 MINR (previous year 63.000 MINR) and depreciation of 501.500 MINR (previous year 457.300 MINR), profit before tax amounts to 5595.900 MINR (previous year 3591.900 MINR). After providing for tax of 1454.800 MINR, profit after tax amounts to 4141.100 MINR (previous year 2595.400 MINR).

The major improvement in financial results is on account of higher volumes across all product segments and focussed cost reductions in all areas.

Further there is reduction of working capital of 456.300 MINR inspite of higher volumes and significant increase in finished goods inventory to support higher sales forecast.

AN OVERVIEW OF SUBSIDIARY COMPANY’S BUSINESSES

Eicher Trucks and Buses (ETB)

After a phenomenal 2010 wherein the Commercial Vehicle (5T and above) industry grew by 51.1% over the previous year, the industry growth moderated to 10.1%. This was also due to the high base effect coming into play. The industry recorded sales of 447318 units as against 2010 sales of 405259 units (including exports) - a growth of 10.1%.

2011 was a year of record breaking performance by ETB. ETB recorded its highest ever total CV sales of 48337 against 38181 units in 2010, a growth of 26.6% and an overall market share (including exports) of 10.8% as against 9.4% in 2010.

In the Bus segment, ETB recorded substantial growth in volume. It sold 6496 units and recorded a growth of 34.8% over previous year. It gained market share by 3.0% to end the year with a market share of 9.7%.

The Industry’s heavy duty truck sales also moderated to 12% in 2011 as against 70.4% in 2010 over the previous year. However, ETB continued to grow in the heavy duty truck segment, riding on the success of the VE series fuel efficient trucks launched in January 2010, and ended the year with a growth of 74.3% in domestic market in 2011 over 2010. ETB sold 7352 trucks in 2011 as against 4219 trucks in 2010 in domestic market. ETB has followed a much focused strategy of targeting specific geography and segments with the right fit product in order to ensure higher value delivery to the customer.

Overall exports of ETB in 2011 were 3108 units, a growth of 14.4% as compared to 2717 units in 2010.

Volvo Trucks India (VTI)

Volvo Trucks are marketed in a niche segment dominated mainly by mining tippers and over dimensional cargo carrying prime movers.

Due to issues surrounding mining, this market segment suffered degrowth from first month of the year. Consequently Volvo Trucks sold 706 units, which is a degrowth of 36.1% over previous year.

The government is concerned over the regulatory delay and many corrective actions being put in place.

Eicher Engineering Components (EEC)

EEC achieved its highest ever turnover of 2706 MINR (including inter segment sales) registering a growth of 38%.

The performance of domestic components industry improved in 2011.

During the year, EEC showed strong performance in export, sales to ETB and other OEM. During the year EEC also enhanced its production capacity at Dewas plant to take care of growing customer demand.

Eicher Engineering Solutions (EES)

This business is operated through an Engineering Design centre at Gurgaon (EESG) along with Eicher Engineering Solution Inc., (USA) and its two subsidiaries viz. Hoff Auto Design (Shanghai) Company Limited and Hoff Automotive Design (Beijing) Company Limited.

In 2011, this business showed much improved results over 2010. It has strengthened its servicing capabilities for the group as well as external customers.

MARKET AND FUTURE PROSPECTS OF SUBSIDIARY COMPANY’S BUSINESSES

Growth of commercial vehicles industry is closely linked to the country’s economic growth. The economic growth momentum in 2011 was lower than 2010 due to monetary tightening credit policies of the central bank to lower inflation that resulted in increased interest rates, inflation, commodity price increases, depreciating rupee and weak cues of global economic growth. This has resulted in moderation in CV growth in 2011 as compared to last year. The various segments in CV industry grew at vastly varying rates. 5T-12T segment grew by a healthy 18.8%. Among the heavy duty truck (16T and above) segments, the 16T and 25T segments witnessed negative growth in 2011 whereas the 31T segment has grown by an impressive 80.1% in 2011. Also, within the heavy duty segment, tippers grew by over 45% in 2011 whereas the haulage segment has grown by only 3.1%, indicating a slowdown in growth of goods movement.

Some of the macroeconomic challenges faced in 2011 are expected to continue in 2012 as well, thus further weakening the business sentiment and growth outlook. However, lower inflation, favourable currency and lower interest rate regime can improve the economic growth climate in 2012. Regulatory actions that facilitate improvement in infrastructure development and mining sector can further provide further impetus to growth.

Eicher Trucks and Buses (ETB)

ETB recorded an excellent overall performance in 2011. While light and medium duty vehicles - both trucks and buses – are expected to continue their strong contribution, the continued acceptability and positive customer response to the “VE” series of heavy duty trucks in 2011 provide strong evidence of success of ETB’s long term strategy to be a significant player in the heavyduty truck market by 2015.

ETB is executing many projects to achieve its long term objectives. These include developing a new range of differentiated products that will drive its future growth.

Volvo Trucks India (VTI)

Growth in mining sector will be greatly aided by legislative/ regulatory actions and greater investment in infrastructure development will enable growth of the segment in which VTI operates. VTI is well positioned to capitalise on the growth in its segment through proven product technology and superior customer value. VTI plans to expand its product offering in 2012 to further consolidate its dominant market position.

Eicher Engineering Components (EEC)

The performance of EEC will be corelated to the growth of OEMs. EEC is targeting higher share of business with OEMs. It has extensive plans for development of new products and upgradation of technology. Also, with improvement in certain international markets like US, exports are likely to improve.

Over longer term, EEC expects to grow in all segments especially in aggregate assembly and outsourcing business. EEC’s ability to offer design and build services will add to its ability to attract business. All required investments to achieve its goals are being made.

Eicher Engineering Solutions (EES)

There has been a steady improvement in the performance of EES in 2011 and this is likely to accelerate in 2012. Major initiatives are planned to enhance EES’s customer acquisition capability from all its global locations. This will enable EES to capitalise on the immense opportunities in the global engineering services industry.

VE Powertrain (VEPT) Project

The VEPT project, announced in 2010, is on track for scheduled commencement of operations by end of 2012. Once operational, it will be able to meet most of Volvo Group’s medium duty engine requirement and also provide significant technological edge to ETB’s heavy duty products. Hence, it has immense strategic importance for VECV and Volvo Group.

The plant is being built with state of art technology in terms of equipment, processes and systems and amalgamates the best of Volvo technologies and the frugal standards of manufacturing set-up of VECV.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELO PMENT

After an excellent 2010 wherein the two wheeler industry grew by 31%, the growth rate in 2011 moderated to 17.5%. Within the two wheeler industry, the motorcycle industry grew by 16.6% in 2011, as compared to 28.4% in 2010. The motorcycle industry achieved a growth of 16.6% despite worse macro economic conditions as compared to 2010.

It needs to be noted that the growth of the motorcycle industry was achieved despite weaker business and customers’ sentiments in 2011 as compared to 2010.

The volume and growth of two wheeler and motorcycle industry are as below:

	2011	2010	Growth
Two Wheeler: Industry (Nos.)	14,970,591	12,736,766	17.5%
Motorcycles (Nos.):	11,728,487	10,058,454	16.6%

Within motorcycles, the growth of segments in 2011 over 2010 was as follows:

- economy segment (less than 125cc) grew by 15%

- executive segment (125 cc to 249 cc) grew by 20%

- premium segment (250cc and above) grew by 71%

These trends indicate the likelihood of higher growth in the higher cc (cubic capacity) segments.

This endorses the emerging trend of leisure motorcycling that is fast catching up with the brand value conscious, upwardly mobile, discerning population that forms a large part of the company’s target customer base. The Company’s Royal Enfield unit has extremely rich global heritage of practical leisure motorcycling of over a hundred years. As greater number of bike enthusiasts catch on to the leisure riding, they believe that it will provide further impetus to the Company’s future prospects.

OPPORTUNITIES, THREAT S AND OUTLOO K

The mega trends of India’s economic growth will present tremendous opportunities for growth in motorcycle segment and in leisure biking. The Company’s healthy customer order book provides a clear indication of future growth.

The Company has been strenuously working to ensure that this opportunity is converted into profitable growth.

A critical element in this strategy is to continually expand the customer offering. At the 2012 Auto Expo, Royal Enfield previewed

- its new motorcycle—Thunderbird 500. It is fitted with UCE (Unit Construction Engine) and a host of design enhancements.

- its all-new Café Racer model which will launched in 2013

- a range of purpose built motorcycle gear. The collection included biker apparel, bike and riding accessories.

Contingent liabilities not provided for in respect of:

Particulars	31.12.2011 (Rs. in millions)	31.12.2010 (Rs. in millions)
a) In respect of demands contested by the Company:
- Sales tax matters	103.800	111.000
- Excise duty matters	549.900	585.600
- Income tax matters	141.500	88.800
- Service tax matters	7.600	9.500
b) Claims against the Company not acknowledged as debts	45.900	9.200
c) Guarantees given to:
A subsidiary, for certain receivables transferred pursuant to Business Purchase Agreement signed by the Company with subsidiary company	0.600	2.100

All the above matters other than guarantees are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of management, have a material effect on the result of operations or the financial position of the Company.

UNAUDITED FINANCIAL RESULTS (STAND-ALONE) FOR THE QUARTER ENDED JUNE 30, 2012

(Rs. in millions)

Particulars	Quarter ended		Half year ended
	30.06.2012 (Unaudited)	31.03.2012 (Unaudited)	30.06.2012 (Unaudited)
1. Income from operations
(a) Gross sales	2860.200	2446.800	5307.000
(b) Less: Excise duty	324.000	246.100	570.100
(c) Net sales	2536.200	2200.700	4736.900
(d) Other operating income	14.700	12.900	27.600
Total income from operations (net)	2550.900	2213.600	4764.500
2. Expenses
(a) Cost of materials consumed	1652.500	1484.600	3137.100
(b) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(7.300)	(46.600)	(53.900)
(c) Employee benefits expense	191.800	150.100	341.900
(d) Depreciation and amortisation expenses	40.200	38.300	78.500
(e) Other expenses	324.600	318.900	643.500
Total expenses	2201.800	1945.300	4147.100
3. Profit from operations before other income and finance costs (1-2)	349.100	268.300	617.400
4. Other income	49.400	264.300	313.700
5. Profit before finance costs (3+4)	398.500	532.600	931.100
6. Finance costs	0.400	0.300	0.700
7. Profit before tax (5-6)	398.100	532.300	930.400
8. Tax expense (including deferred tax and MAT credit entitlement)	75.100	79.000	154.100
9. Net Profit after tax (7-8)	323.000	453.300	776.300
10. Paid-up equity share capital (Face value of each equity share – Rs.10)	270.000	269.900	270.000
11. Reserves as per balance sheet of previous accounting year	--	--	--
Earnings per share (of ` 10 each) (not annualised) in Rs.
(a) Basic	11.96	16.79	28.76
(b) Diluted	11.90	16.72	28.61
A PARTICULARS OF SHAREHOLDING
1. Public shareholding
- Number of shares	12,095,753	12,090,753	12,095,753
- Percentage of shareholding	44.80%	44.79%	44.80%
2. Promoters and Promoter Group Shareholding
a) Pledged / encumbered
- Number of shares	Nil	Nil	Nil
- As a percentage of the total shareholding of the promoter and promoter group	Nil	Nil	Nil
- As a percentage of the total share capital of the Company	Nil	Nil	Nil
b) Non – encumbered
- Number of shares	14,902,730	14,902,730	14,902,730
- As a percentage of the total shareholding of the promoter and promoter group	100%	100%	100%
- As a percentage of the total share capital of the Company	55.20%	55.21%	55.20%

Particulars	Quarter ended
B INVESTOR COMPLAINTS	30.06.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	40
Disposed of during the quarter	40
Remaining unresolved at the end of the quarter	Nil

Notes:

1. As the Company’s business activities fall within a single primary business segment viz. “Automobile products”, the disclosure requirements of Accounting Standard -17 “Segment Reporting” notified under the Companies (Accounting Standards) Rules, 2006 are not applicable.

2. The Company has signed a strategic joint venture agreement on July 23, 2012 with U.S.A. based Polaris Industries Inc., to set up a greenfield project in automotive sector. This agreement envisages the creation of a joint venture company with a 50-50 partnership between the two companies. The manufacturing facility will be located in India and expected to start production in the year 2015.

3. During the current quarter, 5,000 equity shares were issued and allotted as fully paid up at an exercise price of Rs.462 (including premium of Rs.452 each) per equity share under Eicher Employee Stock Option Scheme.

4. Standalone statement of assets and liabilities

(Rs. in millions)

Particulars	As at 30.06.2012
A EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital	270.000
(b) Reserves and surplus	5909.500
Sub-total - Shareholders' funds	6179.500
2. Non- current liabilities
(a) Long-term borrowings	5.800
(b) Deferred tax liabilities (net)	43.600
(c) Other long-term liabilities	29.500
(d) Long-term provisions	82.500
Sub-total - Non-current liabilities	161.400
3. Current liabilities
(a) Short-term borrowings	114.300
(b) Trade payables	1561.700
(c) Other current liabilities	699.200
(d) Short-term provisions	55.900
Sub-total - Current liabilities	2431.100
TOTAL - EQUITY AND LIABILITIES	8772.000
B ASSETS
1. Non- current assets
(a) Fixed assets including capital work-in-progress	1251.600
(b) Pre-operative expenditure (pending allocation)	16.800
(c) Non current investments	54.400
(d) Long-term loans and advances	353.900
Sub-total - Non- current assets	1676.700
2. Current assets
(a) Current investments	5908.100
(b) Inventories	571.100
(c) Trade receivables	127.400
(d) Cash and cash equivalents	137.000
(e) Short-term loans and advances	262.300
(f) Other current assets	89.400
Sub-total - Current assets	7095.300
TOTAL - ASSETS	8772.000

5. The current periods figures in this statement have been reported in the format recommended as per the SEBI circular dated 16 April 2012. The previous periods/year figures have also been accordingly restated to conform with the current periods presentation.

6. The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors in their meetings held on August 9, 2012.

Limited Review:

The limited review, as required under Clause 41 of the listing agreement has been completed by the Statutory Auditors.

The limited review report for the quarter and half year ended June 30, 2012 does not have any impact on the above results.

FIXED ASSETS:

Tangible Assets

v Land – Freehold

v Land – Leasehold

v Buildings

v Plant and Machinery

v Furniture and Fittings

v Office Equipment

v Vehicles

Intangible Assets

v Product Designs, Prototypes etc.

v Computer Software

WEBSITE DETAILS:

PRESS RELEASES:

EICHER MOTORS LIMITED ANNOUNCES H1/Q2 RESULTS FOR CY 2012

- For H1 ending June 2012, total income from operations at INR 32532.000 millions, Operating EBIDTA at INR 3197.000 millions and PAT at INR 2760.000 millions.

- For Q2 ending June 2012, total income from operations at INR 15850.000 millions, operating EBIDTA at INR 1395.000 millions and PAT at INR 1126.000 millions.

New Delhi, August 09, 2012:

Eicher Motors Limited today announced the unaudited consolidated financial results for the Half year and quarter ended June 2012.

The Board of Directors at Eicher Motors Limited approved the results with the performance highlights as follows:

Consolidated Results H1 2012 as compared to H1 2011 and Q2 2012 as compared to Q2 2011

	H1 2012	H1 2011	% Growth	Q2 2012	Q2 2011	% Growth
Total income from operations	32532.000	26566.000	22.5%	15850.000	12824.000	23.6%
Operating Margin (EBIDTA)	3197.000	2877.000	11.1%	1395.000	1256.000	11.1%
EBIDTA %	9.8%	10.8%		8.8%	9.8%
PAT	2760.000	2386.000	15.7%	1126.000	1160.000	(2.9%)

Note:

v All figures are INR millions except where specified

v Previous period figures are restated to effect changes in accounting laws

Speaking on the results, Mr Siddhartha Lal, Managing Director and CEO, Eicher Motors Limited said, “At Eicher Motors Limited the last quarter has been very significant both in terms of strategic direction and focused execution. Our continued focus on product strategies and operational efficiencies in both the businesses- VECV and Royal Enfield, has helped us achieve growth in sales and profits, despite challenging market conditions, especially in commercial vehicles. Our half yearly total income grew by 22.5% and profits after tax grew by 15.7%.”

VECV’s Eicher Trucks and Buses Division (ETB) has continued its momentum with robust growth figures, selling 11864 units in Q2 2012 as compared to 10907 units in the corresponding period last year. In the 5–14T segment ETB has improved its market share to 31.7 % in Q2 2012. In Heavy Duty segment, ETB improved its Q2 2011 performance by 35.5% at 1906 units sold in Q2 2012, thereby, improving its market share from 2.7% in Q2 2011 to 4.8% in Q2, 2012. In the bus segment, ETB’s quarterly volumes stood at 2784 units being sold in Q2 2012, a growth of 30.8% over the corresponding period last year. Market share in bus segment in Q2 2012 has gone up to 13.4% from 12.4% in same period last year.

Commenting on VECV’s performance Mr Siddhartha Lal said “VECV’s Eicher Trucks and Buses division (ETB) continues to grow even when the industry at large has slowed down due to the tough economic environment. For H1, 2012 ETB sold 26059 units as compared to 23412 units in H1, 2011, registering a volume growth of 11.3%. In Q2 2012, ETB has registered a volume growth of 8.8% to outpace the industry that has dropped by 11.3%. This surge is attributed to our focused strategy of driving growth and improved market share in the Heavy Duty and bus segments that has particularly done well for ETB in this quarter. In Q2 2012, ETB has recorded the highest ever quarterly market share of 4.8% in the Heavy Duty segment. Further, in the bus segment ETB has registered the best ever quarterly volume with 2784 units being sold. The quality and reliability of our products at ETB has helped us secure a big order of 1019 buses from the Gujarat State Road Transport Corporation in the month of June 2012.”

Elucidating on the Royal Enfield numbers he said, “In Q2 2012 Royal Enfield has posted a phenomenal growth of 48.1% over Q2 2011 with production and sales of 27,519 units. In July 2012, Royal Enfield crossed a major milestone of producing and selling more than 10,000 units first time ever in a month at the existing facility in Thiruvottiyur, Chennai. We continue to build on a very healthy order book.”

“At Eicher Motors Limited, we are committed to exploring and pursuing opportunities for long term profitable growth and value creation for our stakeholders. As a strategic initiative towards that direction in July 2012, Eicher Motors Limited signed an equal representation (50:50) Joint Venture with Polaris Industries Inc. to set up a greenfield project. The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment”, he further added while concluding his remarks on the Q2 financial results.

About Eicher Motors Limited:

Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India and a leading player in the Indian automobile industry. Its 50-50 joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient commercial vehicles of high quality and modern technology, engineering components and provides engineering design solutions. Eicher Motors manufactures and markets the iconic Royal Enfield motorcycles. In 2011, Eicher Motors recorded the highest ever revenues of INR 56524.000 millions (USD 1.08 billion).

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.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.79

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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.