1. Summary Information

		Country	India
Company Name	SHARDA MOTOR INDUSTRIES LIMITED	Principal Name 1	Mr. Narinder Dev Relan
Status	Good	Principal Name 2	Mr. Ajay Relan
		Registration #	55-023202
Street Address	D-188, Okhla Industrial Area, Phase-1, New Delhi – 110020, India
Established Date	29.01.1986	SIC Code	--
Telephone#	91-11-47334100	Business Style 1	Manufacturer
Fax #	91-11-26811676	Business Style 2	--
Homepage	http://www.shardamotor.com	Product Name 1	Catalytic Converter
# of employees	Not Available	Product Name 2	Seat Frames
Paid up capital	Rs.59,463,260/-	Product Name 3	Seat Covers
Shareholders	Bodies corporate -1.87% Directors or relatives of directors – 79.72% Other top fifty shareholders – 14.42% Others – 3.99%	Banking	Yes Bank Limited
Public Limited Corp.	YES	Business Period	27 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	A (60)
Related Company
Relation	Country	Company Name	CEO
Associates	--	Relan Industrial Finance Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,193,484,000	Current Liabilities	1,614,716,000
Inventories	620,938,000	Long-term Liabilities	1,175,350,000
Fixed Assets	2,293,045,000	Other Liabilities	174,864,000
Deferred Assets	0,000	Total Liabilities	2,964,930,000
Invest& other Assets	319,545,000	Retained Earnings	1402,619,000
		Net Worth	1462,082,000
Total Assets	4,427,012,000	Total Liab. & Equity	4,427,012,000
Total Assets (Previous Year)	3,972,915,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	7,514,219,000	Net Profit	276,109,000
Sales(Previous yr)	7,001,978,000	Net Profit(Prev.yr)	209,675,000

MIRA INFORM REPORT

Report Date :

04.04.2013

IDENTIFICATION DETAILS

Name :	SHARDA MOTOR INDUSTRIES LIMITED
Registered Office :	D-188, Okhla Industrial Area, Phase-1, New Delhi – 110020
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.01.1986
Com. Reg. No.:	55-023202
Capital Investment / Paid-up Capital :	Rs.59.463 Millions
CIN No.: [Company Identification No.]	L74899DL1986PLC023202
TAN No.: [Tax Deduction & Collection Account No.]	DELS03725B
PAN No.: [Permanent Account No.]	AAACS6855J
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Exhaust System, Catalytic Converter, Independent Front Suspension, Seat Frames, Seat Covers (Two Wheelers and Four Wheelers), Soft Top Canopies, and Pressed part - Room Air Conditioners body etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 5800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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	CRISIL
Rating	A (Long Term Rating)
Rating Explanation	Have adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	May 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/ Corporate Office :	D-188, Okhla Industrial Area, Phase-1, New Delhi – 110020, India
Tel. No.:	91-11-47334100
Fax No.:	91-11-26811676
E-Mail :	smil@shardamotor.com udayan.banerjee@shaedamotor.com
Website :	http://www.shardamotor.com
Factory :	Plot No.4, Sector 31, Kasna Industrial Area, Greater Noida, Uttar Pradesh, India Tel. No: 91-120-2341258/ 9 Fax No: 91-120-2341257 Email: smilkorin@shardamotor.com Plot No. 558-559, Surajpur Bypass Industrial Area, Greater Noida, Uttar Pradesh, India Exhaust System Division: G-20, SIPCOT Industrial Park, Irrungattukottai, Sriperumbudur-602105, Tamilnadu, India Email: smilchennai@shardamotor.com Exhaust and Suspension Division: Plot No. 112, M.I.D.C. Satpur, Near Mahindra and Mahindra Plant, Nashik, Maharashtra, India Tel. No: 91-253-2364451/ 2364452/ 2364453 Email: smilnsk@shardamotor.com Plot No. 276, Udyog Vihar, Phase – VI, Gurgaon, Haryana, India
Working Units :	Sheet Metal Division, Greater Noida, Uttar Pradesh, India Exhaust System Division, Chennai, Tamilnadu, India Export Division, Chennai, Tamilnadu, India R and D Centre, Chennai Tamilnadu, India Exhaust   Division, Nashik, Maharashtra, India Suspension Division, Nashik, Maharashtra, India Buying House Centre, Nashik, Maharashtra, India Soft Top / Plastic Division, Surajpur Automotive Upholstery Division, Gurgaon, Haryana, India White Goods Division, Haridwar, Uttarakhand, India Seat Frame Division, Binola Pro -Acoustics Division, New Delhi, India Exhaust and Seat Frame Division Singur
International Office :	103-102, Hyundai I Park, 2048, Namyang-Dong, Hwasung City, Kyeonggi-Do, Korea
Tel No.:	082-(0)70-8700-4874

DIRECTORS

As on: 12.09.2012

Name :	Mr. Narinder Dev Relan
Designation :	Chairman
Address :	25, Sardar, Patel Marg, Chanakya Puri, New Delhi - 110021, India
Date of Birth/Age :	31.05.1929
Qualification :	Graduate
Date of Appointment :	29.08.1986
PAN No.:	AAHPR1325A
DIN No.:	00240280
Name :	Mr. Ajay Relan
Designation :	Managing Director
Address :	25, Sardar, Patel Marg, Chanakya Puri, New Delhi - 110021, India
Date of Birth/Age :	03.12.1961
Qualification :	Graduate
Date of Appointment :	29.011986
PAN No.:	AAEPR4256P
DIN No.:	00257584
Name :	Sharda Relan
Designation :	Director
Address :	25, Sardar, Patel Marg, Chanakya Puri, New Delhi - 110021, India
Date of Birth/Age :	11.08.1935
Date of Appointment :	29.01.1986
PAN No.:	AAKPR2245N
DIN No.:	00252181
Name :	Mr. Rohit Relan
Designation :	Director
Address :	25, Sardar, Patel Marg, Chanakya Puri, New Delhi - 110021, India
Date of Birth/Age :	02.07.1955
Date of Appointment :	25.05.1991
PAN No.:	AAEPR4255Q
DIN No.:	00257572
Name :	Mr. Ram Prakash Chowdhry
Designation :	Director
Address :	10, Anand Lok, New Delhi - 110049, India
Date of Birth/Age :	16.05.1925
Date of Appointment :	29.08.1986
PAN No.:	AAAPC2315C
DIN No.:	00337775
Name :	Mr. Om Prakash Khaitan
Designation :	Additional Director
Address :	N-12, Panchsheel Park, New Delhi - 110017, India
Date of Birth/Age :	21.11.1943
Date of Appointment :	16.12.2005
PAN No.:	AHJPK7370H
DIN No.:	00027798
Name :	Mr. Kishan Nagin Parikh
Designation :	Additional Director
Address :	Panchsheel, No. II, Inner Circle Road, Contractors' Area, Jamshedpur – 831001, Jharkhand, India
Date of Birth/Age :	15.04.1967
Date of Appointment :	16.12.2005
PAN No.:	ABWPP6531A
DIN No.:	00453209
Name :	Mr. Ashok Kumar Bhattacharya
Designation :	Director
Address :	46 Wake Green Road, Moseley, Birmingham, B139PF, United Kingdom
Date of Birth/Age :	11.01.1928
Date of Appointment :	28.10.2009
PAN No.:	APUPB7542R
DIN No.:	02804551
Name :	Mr. Udayan Banerjee
Designation :	Executive Director
Address :	E-222, Greater Kailash, Part II, New Delhi -110048, India
Date of Birth/Age :	15.01.1947
Qualification :	Graduate
Date of Appointment :	01.06.2004
PAN No.:	AAHPB3641F
DIN No.:	00339754

KEY EXECUTIVES

Name :	Mr. Nitin Vishnoi
Designation :	Company Secretary
Address :	13/91, Raj Nagar, Ghaziabad - 201002, Utter Pradesh, India
Date of Birth/Age :	18.01.1970
Date of Appointment :	01.07.2002
Pan No.:	AAYPV5238R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 12.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 12.09.2012

Category	Percentage
Bodies corporate	1.87
Directors or relatives of directors	79.72
Other top fifty shareholders	14.42
Others	3.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Exhaust System, Catalytic Converter, Independent Front Suspension, Seat Frames, Seat Covers (Two Wheelers and Four Wheelers), Soft Top Canopies, and Pressed part - Room Air Conditioners body etc.

Products :

Product Description	ITC Code
Parts And Accessories	8708
Seats	9401

• Exhaust Systems
• Catalytic Converters (for four wheelers)
• Independent Front Suspensions
• Canopies
• Seat Covers
• Seat Frames (for four wheelers)
• Assembly of Rear Automotive Suspensions
• Powder Coated Pressed Parts
• Plastic Flexible Hose Pipes

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Automotive Components
– Metal Parts	Pcs	16320202
– Fabric	Pcs	4501056
White Goods	Pcs	3304575

NOTE: Licensed and Installed Capacity:

As certified by the Management and as per the norms laid down by the Central Government, no licence is required for the class of goods manufactured by the Company; hence information pertaining to the licensed capacity is not given. The Company is of the view that the installed capacity of its machinery in terms of measurable units cannot be determined as it varies, based on the design / process of its heterogeneous range of products.

GENERAL INFORMATION

Customers :

• Hyundai Motors
• Mahindra and Mahindra
• Mahindra Navistar
• Bharat Seats
• Carrier
• Tata Johnson Controls
• Peal Rogressive
• Panasonic

No. of Employees :

Not Available

Bankers :

• Axis Bank Limited, Fort Branch, Universal Insurance Building, Sir P.M. Road, Fort, Mumbai - 400001, Maharashtra, India
• Yes Bank Limited, 9^th Floor, Nehru Centre Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India
• Canara Bank, Parliament Street, New Delhi – 110001, India
• ICICI Bank Limited, Land Mark Race Course Circle, Alkapuri, Baroda - 390015, Gujarat, India
• Citi Bank
• Punjab National Bank
• Industrial Development Bank of India
• State Bank of India
• HDFC Bank Limited
• ABN Amro Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012
Rupee term loans from banks	40.531
Rupee term loans from others	47.790
Term loans from others	165.508
Deposits from directors	364.300
Other loans and advances, others	557.221
Total	1175.350

Secured Loan	As on 31.03.2011
From Banks
Cash Credit	258.435
Buyers’ Credit	95.096
Bills Discounted	30.588
Term Loan
External Commercial Borrowing	225.686
Short Term Loan	0.000
Rupee Term Loan	105.381
Total	715.186

Banking Relations :	--
Auditors :
Name :	S.R Dinodia and Company Chartered Accountants
Address :	K-39, Connaught Place, New Delhi, India
PAN No.:	AACFS2559N
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Sharda Enterprises A.N.I Hospitality LLP
Associates :	Relan Industrial Finance Limited CIN No.: U65923DL1987PLC026603 Progressive Engineering and Automation Private Limited CIN No.: U34300DL2005PTC142017

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5946326	Equity Shares	Rs.10/- each	Rs.59.463 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		59.463	59.463	59.463
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1402.619	1195.620	1055.284
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1462.082	1255.083	1114.747
LOAN FUNDS
1] Secured Loans		1175.350	715.186	703.924
2] Unsecured Loans		0.000	366.519	259.200
TOTAL BORROWING		1175.350	1081.705	963.124
DEFERRED TAX LIABILITIES		95.080	115.034	65.492
TOTAL		2732.512	2451.822	2143.363
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2293.045	1814.500	1103.231
Capital work-in-progress		105.145	337.774	226.323
INVESTMENT		214.400	214.400	214.413
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	620.938	656.614	389.829
	Sundry Debtors	943.067	761.433	409.642
	Cash & Bank Balances	35.083	23.970	79.871
	Other Current Assets	0.638	21.849	12.364
	Loans & Advances	214.696	142.375	649.386
Total Current Assets		1814.422	1606.241	1541.092
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1082.498	1048.244	763.598
	Other Current Liabilities	532.218	419.377	135.972
	Provisions	79.784	53.472	42.126
Total Current Liabilities		1694.500	1521.093	941.696
Net Current Assets		119.922	85.148	599.396
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2732.512	2451.822	2143.363

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	7514.219
		Other Income	58.150
		TOTAL (A)	7572.369
Less	EXPENSES
		Cost of materials consumed	4924.647
		Purchases of stock-in-trade	538.169
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	14.896
		Employee benefit expense	392.265
		Other expenses	995.705
		TOTAL (B)	6865.682
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		706.687
Less	FINANCIAL EXPENSES (D)		93.310
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		613.377
Less/ Add	DEPRECIATION/ AMORTISATION (F)		312.600
	PROFIT BEFORE TAX (E-F) (G)		300.777
Less	TAX (H)		24.668
	PROFIT AFTER TAX (G-H) (I)		276.109
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		147.888
Less	APPROPRIATIONS
		Proposed Dividend	29.732
		Tax on Proposed Dividend	4.823
		Interim Dividend	29.732
		Tax on Interim Dividend	4.823
		Transferred to General Reserves	200.000
	BALANCE CARRIED TO THE B/S		154.887
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	34.493
	TOTAL EARNINGS		34.493
	IMPORTS
		Raw Materials	1093.828
		Capital Goods	120.447
	TOTAL IMPORTS		1214.275
	Earnings Per Share (Rs.)		46.43

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	7001.978	4661.967
		Other Income	52.344	42.316
		TOTAL (A)	7054.322	4704.283
Less	EXPENSES
		Cost of Raw Material	420.915	353.213
		Manufacturing and Other Expenses	6028.300	3805.365
		TOTAL (B)	6449.215	4158.578
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		605.107	545.705
Less	FINANCIAL EXPENSES (D)		80.818	82.517
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		524.289	463.188
Less/ Add	DEPRECIATION/ AMORTISATION (F)		241.821	149.204
	PROFIT BEFORE TAX (E-F) (G)		282.468	313.984
Less	TAX (H)		72.793	102.423
	PROFIT AFTER TAX (G-H) (I)		209.675	211.561
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		157.552	215.559
Less	APPROPRIATIONS
		Transfer to General Reserve	150.000	200.000
		Proposed Dividend	29.732	29.732
		Interim Dividend	29.732	29.732
		Tax on Interim Dividend	4.938	5.052
		Tax on Proposed Dividend	4.938	5.052
	BALANCE CARRIED TO THE B/S		147.887	157.552
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	26.240	15.269
	IMPORTS
		Raw Materials	1126.532	701.213
		Capital Goods	83.172	11.345
		Machinery Spares and Consumables	44.753	8.149
	TOTAL IMPORTS		1254.457	720.707
	Earnings Per Share (Rs.)		35.26	35.58

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.65	2.97	4.49
Net Profit Margin (PBT/Sales)	(%)	4.00	4.03	6.73
Return on Total Assets (PBT/Total Assets}	(%)	7.32	8.26	11.87
Return on Investment (ROI) (PBT/Networth)		0.21	0.23	0.28
Debt Equity Ratio (Total Debt/Networth)		0.80	0.86	0.86
Current Ratio (Current Asset/Current Liability)		1.10	1.06	1.63

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. in Millions)

Particular	As on 31.03.2011
From Directors	342.200
From Corporate	24.319
Total	366.519

OPERATIONS

During the yea , the gross revenue from operations and other income for the year was Rs. 7572.369 Millions as against Rs. 7040.733 Millions showing a increase of 7.55% over the previous year’s gross revenue. The profit before finance charges, depreciation and taxation is Rs. 706.688 Millions for the financial year as against Rs. 605.804 Millions for the previous year showing the increase of 16.65 %. The profit after tax increase by 31.68 % to Rs. 276.109 Millions as compared to Rs. 209.678 Millions last year.

FIXED ASSETS:

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office Equipment

Intangible Assets

• Computer Software
• Copyrights
• Patents
• Know-how

AS PER WEBSITE DETAILS:

Press Releases

SHARDA MOTORS LOOKS FOR EQUITY INVESTOR

Saturday, February 11, 2012

Chennai, Feb 11 (IANS) Auto component vendor Sharda Motor Industries Limited is planning to raise equity funds for its future plans and is also exploring overseas market for its off-the-highway vehicle exhaust systems, said a senior company official.

"We are holding discussions for raising equity funds for our expansion plans. We are open for private placement. Currently the company's equity stands at around Rs.90.000 Millions," managing director Ajay Relan told IANS here.

He said the promoter's holding currently at 82 percent will be brought down.

Meanwhile the company is now looking at overseas earthmoving equipment makers for its exhaust systems.

"We are now focusing on export market and the new research and development (R and D) centre here will be towards that. We are now supplying to BEML and John Deere," research and development (R and D) head Sivanandi Rajadurai told IANS.

He said the company has set up the R and D centre near here at an outlay of Rs.300.000 Millions and has 32 engineers.

The centre would provide customer support in product development, emission and noise control technologies.

The new R and D centre will also be involved in modelling and simulation tools to design and optimise exhaust components and full system.

"We also have engineers looking at R and D at all our 13 plants," Relan added.

He said the company's two upcoming plants at Pune and Gurgaon would be completed soon and the total investment in them is around Rs.1000.000 Millions.

Queried on consolidating the manufacturing operations in few locations to derive economies of production, Relan said: "The exhaust systems are long and bulky and would involve huge freight cost. Further vehicle manufacturers want their vendors to be near the plant."

SHARDA MOTOR INDUSTRIES INAUGURATES RS.300.000 MILLIONS R AND D CENTRE IN ORAGADAM, TAMILNADU

February 15 2012

Sharda Motor Industries Limited, one of the leading auto component manufacturer and Tier-I exhaust systems supplier to automotive OEMs opened Rs.300.000 Millions R and D Centre at Mahindra World City, Oragadam near Chennai in Tamilnadu.

The new centre will provide local support from concept to implementation to its clients. What is more, the new centre would also help reduce cost and further enhace performance through value analysis and value engineering. For that purpose, SMIL has forged alliance with Ricardo and Sango for technical assistance to the development programmes. In addition to the initial investment of Rs.300.000 Millions already spent, the company will infuse Rs.750.000 Millions more by 2014.

While speaking to the media after the inauguration of the R and D Centre, ND Relan, Chairman, SMIL said: "Our newly established R and D Centre at Mahindra World City will basically provide customer support for exhaust product development, besides lead advanced emision control and noice reduction technologies. Furthermore, the Centre will also be active in modeling and simulation tools to design and optimise exhaust parts and full system. In future, we might as well explore the possibilities of having joint development and partnership programme".

Stating that Chennai was the natural choice for establishing the Centre, the official said: "Chennai has abundance of engineering talent. What is more, this region also has a whole lot of automotive OEMs. So, it was a natural choice for us, when we decided to set up an R and D Centre, to establish it in and around Chennai region".

SMIL has put in lot of efforts in terms of finding the right talent and the right kind of locale. The whole conception of setting up such a centre took the company more than five years and another three years to actually set up the facility.

Sharda is also looking at overseas earthmoving equipment players for its exhaust systems. "With the Centre in place, we are now targeting the overseas market. At present, in the domestic market, we are supplying products to the public sector enterprise, Bharat Earth Movers Limited and John Deere', Sivanandi Rajadurai, Head (R and D), Sharda Motor Industries said. Besides the Chennai R and D, the company also have engineers taking care of its 13 plants spread across the country, Relan said and added Sharda's two upcoming facilities at Pune in Maharashtra and Gurgaon in Haryana would go on stream soon. The company has made a total investment of Rs.1000.000 Millions for these two facilities.

When asked whether Sharda is planning to consolidte the manufacturing operations in few locations to derive economies of production, Relan said that the exhaust systems are long and bulky, hence would involve humungous freight cost. Moreover, vehicle manufacturers would want their vendors to be near their facilities.

Meanwhile, IANS reported that Sharda Motor Industries is also contemplating on raising equity funds for its future plans and is also looking at overseas markets for its off-the-highway vehicle exhaust systems. Relan told the agency that the company was holding talks for raising equity funds for its expansion plans. "We are open for private placement. Currently, our equity stands at around Rs.90.000 Millions. The promoter's holding right now is at 82 percent and that would be brought down", he added.

Sharda Motor has facilities spread across seven states in India right from Uttaranchal in the north to Tamil Nadu in the south, through Uttar Pradesh, Haryana, Delhi, Gujarat and Maharashtra. Besides that two more plants are coming up in Pune and Gurgaon. Sharda Motor Industries clocked a turnover of Rs.25000.000 Millions in 2010-11. With two more facilities and the Chennai Centre in place, the exhaust manufacturer is ambitious of achieving Rs.30000.000 Millions for the current fiscal.

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 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.54.39
UK Pound	1	Rs.82.05
Euro	1	Rs.69.59

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		60

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.