MIRA INFORM REPORT

Report Date :

18.04.2013

Note: VIKRANT TYRE is the manufacturing unit of J K TYRE AND INDUSTRIES LIMITED.

IDENTIFICATION DETAILS

Name :	J K TYRE AND INDUSTRIES LIMITED VIKRANT TYRE – UNIT OF J K TYRE AND INDUSTRIES LIMITED
Registered Office :	7, Council House Street, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.02.1951
Com. Reg. No.:	21-019430
Capital Investment / Paid-up Capital :	Rs.410.600 Millions
CIN No.: [Company Identification No.]	L67120WB1951PLC019430
TAN No.: [Tax Deduction & Collection Account No.]	JDHJ01475F / CALJ01643F
PAN No.: [Permanent Account No.]	AAACJ6716P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Tyres.
No. of Employees :	8300 (Approximately) [ In Office 300 + In Factory 8000]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 27000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a one of the leading automotive tyre manufacturers in India. It is a well established company having a satisfactory track record. There appears continuous dip in the profitability. The external borrowings seems to be increasing over a year. However, general financial position of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as pr commitment. The company can be considered normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB+ (Long Term Rating)
Rating Explanation	Having Moderate degree of safety regarding timely servicing of financial obligations it carry moderate credit risk.
Date	August 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.

INFORMATION PARTED BY

Name :	Mr. Kamal Manik
Designation :	Chief Manager (Finance)
Contact No.:	91-11-23311112
Date :	09.04.2013

LOCATIONS

Registered Office :	7, Council House Street, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22484198 / 22486181
Fax No.:	91-33-22481641
E-Mail :	info@jktyre.com pkrustagi@jkmail.com
Website :	http://www.jktyre.com
Location:	Owned
Factory :	Mysore, Karnataka, India
Corporate/ Head Office :	‘Link House’, 3, Bahadur Shah Zafar Marg, New Delhi – 110002, India
Tel. No.:	91-11-23311112-7
Fax No.:	91-11-23322059/ 23716205
Plants Locations :	Jaykaygram, Kankroli, Rajasthan, India Banmore, Madhya Pradesh, India Mysore Plant I, Karnataka, India Mysore Plant II, Karnataka, India Mysore Plant III, Karnataka, India Chennai Plant, Tamilnadu, India
Branch Office :	3/Fl, Gulab Bhavan, 3 Bahadur Shah Jafar Marg, New Delhi – 110 002, India

DIRECTORS

As on: 31.03.2012

Name :	Mr. Hari Shankar Singhania
Designation :	Chairman
Qualification :	B.Sc., F. Inst. D. (London)
Date of Joining :	25.03.1974
Other Directorships :	J. K. Corporation Limited-Chairman and Managing Director The Central Pulp Mills Limited- Chairman Atlas Copco (India) Limited- Chairman J. K. Udaipur Udyog Limited-Chairman
Name :	Dr. Raghupati Singhania
Designation :	Vice Chairman and Managing Director
Name :	Mr. Bharat Hari Singhania
Designation :	Managing Director
Name :	Mr. Arvind Singh Mewar
Designation :	Director
Qualification :	B. A. (English Literature, Economics and Political Science), Hotel Management Ctheirse (U.K)
Date of Joining :	07.04.1975
Other Directorships :	The Lake Palace Hotels and Motels Limited -Chairman and Managing Director Historic Resort Hotels Limited -Chairman Shikarbadi Hotels Limited
Name :	Mr. Bakul Jain
Designation :	Director
Name :	Mr. Om Prakash Khaitan
Designation :	Director
Name :	Mr. Kalpataru Tripathy
Designation :	Director
Name :	Mr. Vikrampati Singhania
Designation :	Deputy Managing Director
Name :	Mr. Swaroop Chand Sethi
Designation :	Whole Time Director
Name :	Mr. Arun K. Bajoria
Designation :	President and Director

KEY EXECUTIVES

Name :	Mr. P. K. Rustagi
Designation :	Vice President (legal) and Company Secretary

SHAREHOLDING PATTERN

As on: 31.12.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	715161	1.74
Bodies Corporate	18724320	45.60
Sub Total	19439481	47.34
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	19439481	47.34
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	877562	2.14
Financial Institutions / Banks	40874	0.10
Central Government / State Government(s)	285520	0.70
Insurance Companies	1903294	4.64
Foreign Institutional Investors	3335403	8.12
Sub Total	6442653	15.69
(2) Non-Institutions
Bodies Corporate	3513035	8.56
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4717035	11.49
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1719289	4.19
Any Others (Specify)	5227853	12.73
Clearing Members	42779	0.10
Trusts	200	0.00
Non Resident Indians	1693138	4.12
Overseas Corporate Bodies	3487500	8.49
Directors & their Relatives & Friends	4236	0.01
Sub Total	15177212	36.96
Total Public shareholding (B)	21619865	52.66
Total (A)+(B)	41059346	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)	41059346	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Tyres.

Products :

Item Code No.	Products Description
4011, 12, 13	Tyres, Tubes and Flaps
3004	Pharmaceuticals
1701	Cane Sugar

Exports :

Products :

Tyres

Countries :

· Middle East

· South Arabia

· Brazil

· South Africa

Imports :

Products :

Raw Materials

Countries :

· Malaysia

· China

· Taiwan

Terms :

Selling :

L/C

Purchasing :

L/C

PRODUCTION STATUS (AS ON 31.03.2011)

PARTICULARS	UNITS	INSTALLED CAPACITY PER ANNUM	PRODUCTION
		QTY.	QTY.
Automobile Tyres	Lac Nos.	98.61	85.98
Automobile Tubes	Lac Nos.	13.82	54.62
Automobile Flaps	Lac Nos.	--	24.47

GENERAL INFORMATION

Customers :

OEM’s and Dealers

No. of Employees :

8300 (Approximately) [ In Office 300 + In Factory 8000]

Bankers :

§ Bank of India

§ Corporation Bank

§ IDBI Bank Limited

§ Indian Bank

§ Punjab National Bank

§ State Bank of Bikaner and Jaipur

§ State Bank of India

§ State Bank of Mysore

§ Syndicate Bank

§ The Federal Bank Limited

§ UCO Bank

Facilities :

Secured Loans	Rs. in Millions 31.03.2012 (12 Months)	Rs. in Millions 31.03.2011 (12 Months)
Zero Coupon Non-Convertible Debentures
Term Loans
- Financial Institutions	942.900	0.000
- Banks	6508.700	1922.800
- Other	572.900	655.200
Deferred Sales Tax	55.200	177.300
Repayable on demand from Banks (Represents Working Capital borrowings secured by hypothecation of stocks and book debts etc. of the Company, both present and future and second charge created / to be created on movable and immovable properties of the Company's Plants in Rajasthan, Madhya Pradesh, Karnataka and Tamilnadu)	5887.200	4172.400
Total	13966.900	6927.700

NOTES:

1. (a) 27353 Zero Coupon Non-Convertible Debentures (ZCNCDs) of Rs.10,000 each issued to a Bank, outstanding as on 31.03.2012 - Nil, were secured by first pari passu charge created on the specified property of Gujarat and movable and immovable properties of Company's Plants in Karnataka, both present and future. These debentures were redeemable at premium based on a YTM of 13.75% p.a up to 30.06.2005 and a YTM of 9% p.a. w.e.f. 01.07.2005 with quarterly rests in five installments at the end of 3 to 7 years from the respective dates of payment of allotment money / call money.

(b) 9057 Zero Coupon Non-Convertible Debentures (ZCNCDs) of Rs. 10,000 each issued to Financial Institutions, outstanding as on 31.03.2012 - Nil, were secured by first pari passu charge created on the specified property of Gujarat and movable and immovable properties of Company's Plants in Karnataka, both present and future. 2656 ZCNCDs were redeemable at premium based on a YTM of 13.75% p.a. and 6401 ZCNCDs were redeemable at premium based on a YTM of 13.75% p.a. reduced to a YTM of 9% p.a. w.e.f. various dates during January, 2006 to March, 2006 with quarterly rests in five installments at the end of 3 to 7 years from the respective dates of payment of allotment money / call money.

2. Term Loan of Rs.400.000 Millions from a Bank, secured by a first pari passu charge created on movable and immovable properties of Company's Plant in Madhya Pradesh, both present and future is repayable in 28 equal quarterly installments commencing from 01.08.2012.

3. Term Loans from Banks outstanding as at 31.03.2012 - Nil, were secured by a first pari passu charge created on movable and immovable properties of the Company's Plants in Rajasthan, Madhya Pradesh and Karnataka, both present and future.

4. Term Loans aggregating Rs.1469.900 Millions from Banks are secured by a first pari passu charge created on movable and immovable properties at a Company's Plant in Karnataka, both present and future and also secured by way of hypothecation created / to be created on the specified movable assets at Company's Plants in Rajasthan, Madhya Pradesh and Karnataka. Term Loan from one bank amounting to Rs.769.900 Millions is repayable in 24 equal quarterly installments and from another bank Rs.700.000 Millions is repayable in 21 equal quarterly installments.

5. Term Loans aggregating Rs.600.000 Millions from Banks, secured by a first pari passu charge created / to be created on movable and immovable properties at a Company's Plant in Karnataka, both present and future are repayable in 36 equal quarterly installments commencing from 01.04.2014.

6. Term Loans aggregating Rs.4343.300 Millions from Banks and Foreign Currency Loan from a Financial Institution amounting to Rs.942.900 Millions (including Rs.42.900 Millions for foreign exchange fluctuation), secured by a first pari passu charge created on movable and immovable properties at a Company's Plant in Tamilnadu, both present and future are repayable in 36 equal quarterly installments commencing from 01.04.2014.

7. Term Loan of Rs.52.500 Millions from a Bank, secured by an exclusive charge by way of hypothecation of specified assets at Company's Plants in Rajasthan, Madhya Pradesh and Karnataka is repayable in 3 equal quarterly installments.

8. Term Loan of Rs.0.500 Million from a Bank and Rs.1.300 Millions from a body corporate, secured by hypothecation of specified vehicles are repayable in 8 and 30 equated monthly installments respectively.

9. Term Loan of Rs.653.800 Millions from a body corporate to be secured by way of hypothecation on the specified assets at a Company's Plant in Karnataka is repayable in 32 equal quarterly installments.

10. Term Loans carrying first pari passu charge on the movable and immovable properties, are subject to prior charge of banks on stocks and book debts for working capital borrowings.

11. (a) Deferred Sales Tax aggregating Rs.177.300 Millions from Madhya Pradesh State Industrial Development Corporation Limited, secured by first available charge on movable and immovable properties (created subject to charges referred to in note 2, 3, 4 and 7 on movable and immovable properties of Company's Plant in Madhya Pradesh) is repayable as Rs.122.100 Millions in April 2012 and Rs.55.200 Millions in April 2013.

(b) Deferred Sales Tax Loan aggregating Rs. Nil from Government of Karnataka subordinated to loans from Financial Institutions, is secured by a second charge on immovable properties of the Company's Plant in Karnataka.

12. Unsecured Deferred Sales Tax Rs.1215.100 Millions. is repayable in 5 equal annual installments commencing from January 2013.

13. Fixed Deposits of Rs.202.500 Millions, Rs.148.600 Millions and Rs.75.500 Millions (aggregating Rs.426.600 Millions) are due for repayment in 2012-2013, 2013-2014 and 2014-2015 respectively.

14. Unsecured loan from a bank amounting to Rs.500.000 Millions is repayable during January 2014.

Banking Relations :	--
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	Delhi, India
Associates :	§ Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) § Valiant Pacific LLC. (VPL)
Enterprise over which KMP is able to exercise Significant Influence:	§ JK Lakshmi Cement Limited. (JKLC) § Fenner India Limited. (FIL) (w.e.f. 01.06.2010)
Subsidiaries :	§ J. K. International Limited § J. K. Asia Pacific Limited § J. K. Asia Pacific (S) Pte. Limited (Subs. of J. K. Asia Pacific Limited) § Lankros Holdings Limited § Sarvi Holdings Switzerland AG. (Subs. of Lankros Holdings Limited) § JK Tornel, S.A. De C.V. - (JKTSA - Subs. of Sarvi Holdings Switzerland AG.) § Comercializadora América Universal, S.A. De C.V.* § Compañía Hulera Tacuba, S.A. De C.V.* § Compañía Hulera Tornel, S.A. De C.V. (CHT)* § Compañía Inmobiliaria Norida, S.A. De C.V.* § General de Inmuebles Industriales, S.A. De C.V.* § Gintor Administración, S.A. De C.V.* § Hules y Procesos Tornel, S.A. De C.V.* Note: *Subsidiary of JKTSA

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
125,000,000	Equity shares	Rs.10/- each	Rs.1250.000 Millions
700,000	14% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs. 70.000 Millions
4,800,000	Preference Shares	Rs.100/- each	Rs. 480.000 Millions
	Total		Rs. 1800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41,059,346	Equity shares	Rs.10/- each	Rs. 410.600 Millions

NOTES:

Details of each shareholder holding more than 5% shares:	No. of Shares held As at 31.03.2012
Name of Shareholder
Bengal and Assam Company Limited	85,89,250
Fenner India Limited	36,00,000
JK Agri Genetics Limited	60,34,070
Edgefield Securities Limited	34,87,500
Reconciliation of the number of shares outstanding:	As at 31.03.2012
Shares outstanding as at the beginning of the year	4,10,59,346
Addition during the year	-
Deletion during the year	-
Shares outstanding as at the end of the year	4,10,59,346

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		410.600	410.600	410.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6295.400	6736.600	6523.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6706.000	7147.200	6934.200
LOAN FUNDS
1] Secured Loans		13966.900	6927.700	4333.300
2] Unsecured Loans		2813.500	5399.600	4268.500
TOTAL BORROWING		16780.400	12327.300	8601.800
DEFERRED TAX LIABILITIES		1475.600	1448.600	1391.000
TOTAL		24962.000	20923.100	16927.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14431.900	14163.100	13527.700
Capital work-in-progress		7492.000	1921.400	1320.200
INVESTMENT		1008.900	935.600	902.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6615.400	6886.000
	Sundry Debtors	8673.600	7080.500	10107.200
	Cash & Bank Balances	784.200	851.100
	Other Current assets	881.800	65.500
	Loans & Advances	3396.700	3289.800	2019.500
Total Current Assets		20351.700	18172.900	12126.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	10301.700	7389.700	6483.700
	Other Current Liabilities	6968.100	5838.700	3395.700
	Provisions	1052.700	1041.500	1070.600
Total Current Liabilities		18322.500	14269.900	10950.000
Net Current Assets		2029.200	3903.000	1176.700
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		24962.000	20923.100	16927.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	56437.100	48301.300	36777.000
		Other Income	35.000	39.900	147.200
		TOTAL (A)	56472.100	48341.200	36924.200
Less	EXPENSES
		Cost of Material consumed	41085.900	36501.400	25540.200
		Purchase of Stock-in-Trade	609.900	365.900	0.000
		Employee Cost	2948.000	2711.600	2539.800
		(Increase)/ Decrease in Finished Goods	849.500	(1659.200)	726.700
		Freight and Transportation	0.000	0.000	946.400
		Transfer from Capital Reserve	0.000	0.000	(234.700)
		Other Expenditure	8149.100	7478.300	2968.200
		Exceptional Item	(16.700)	134.700	0.000
		TOTAL (B)	53625.700	45532.700	32486.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2846.400	2808.500	4437.600
Less	FINANCIAL EXPENSES (D)		1704.300	980.800	886.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1142.100	1827.700	3551.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1014.100	911.000	1094.200
	PROFIT BEFORE TAX (E-F) (G)		128.000	916.700	2456.800
Less	TAX (H)		18.000	303.500	822.100
	PROFIT AFTER TAX (G-H) (I)		110.000	613.200	1634.700
Less	Tax Provision For Earlier Year		NA	NA	2.900
Add	Debenture Redemption Reserve no Longer Required		NA	NA	56.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	272.300
Less	APPROPRIATIONS
		Debenture Redemption Reserve	NA	NA	10.100
		General Reserve	NA	NA	1000.000
		Proposed Dividend	NA	NA	143.700
		Corporate Dividend Tax	NA	NA	23.900
	BALANCE CARRIED TO THE B/S		NA	NA	782.700
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of exports	5902.900	4180.400	3572.300
		Royalty	45.200	37.400	42.000
		Interest Income	5.200	11.200	22.900
		Others	0.000	24.700	0.000
	TOTAL EARNINGS		5953.300	4253.700	3637.200
	IMPORTS
		Raw Materials	14000.000	8890.500	7525.100
		Capital Goods	2818.700	807.500	512.800
		Spares	50.600	39.800	39.100
	TOTAL IMPORTS		16869.300	9737.800	8077.000
	Earnings Per Share (Rs.)		2.68	14.93	39.74

Particulars	31.03.2013
Sales Turnover (Approximately)	60000.000

The above information has been parted by Mr. Kamal Manik.

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	14432.600	13219.600	12814.900
Total Expenditure	13173.900	12143.300	11639.000
PBIDT (Excl OI)	1258.700	1076.300	1175.900
Other Income	30.400	34.500	30.000
Operating Profit	1289.100	1110.800	1205.900
Interest	464.700	480.400	530.400
Exceptional Items	(200.300)	08.200	(106.700)
PBDT	624.100	638.600	568.800
Depreciation	263.300	266.300	268.300
Profit Before Tax	360.800	372.300	300.500
Tax	113.700	112.400	89.100
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	247.100	259.900	211.400
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	247.100	259.900	211.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.19	1.27	4.43
Net Profit Margin (PBT/Sales)	(%)	0.23	1.90	6.68
Return on Total Assets (PBT/Total Assets}	(%)	0.37	2.83	9.58
Return on Investment (ROI) (PBT/Networth)		0.02	0.13	0.35
Debt Equity Ratio (Total Debt /Networth)		2.50	1.72	1.24
Current Ratio (Current Asset/Current Liability)		1.11	1.27	1.11

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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

OPERATIONS

Turnover for the year was at all time high of Rs.61520.000 Millions recording an increase of 17% over the previous year. Operating Profit for the year was Rs.2830.000 Millions and Profit Before Tax was Rs.13 Millions.

The Company along with its wholly owned subsidiary JK Tornel achieved a turnover of Rs.74560.000 Millions during the year.

The year began on a promising note with robust sale of automotives across various segments. Economy was expected to grow at 9%. However, in order to contain inflation, monetary policy was tightened, during the year, resulting in steep increase in interest rates. The automotive sector was adversely affected and passenger car segment grew by merely 2.7%. Consequently demand for tyres slowed down.

During the year, operations were disrupted at Mysore Plant II and Banmore Plant for 45 days and 60 days respectively, pursuant to go slow resorted to by a section of workmen at these locations. This illegal partial stoppage of work resulted in loss of production and profit to the Company.

Second half of the year witnessed severe volatility in foreign exchange rate movement, thus substantially impacting the cost of imported raw materials. All round cost push on the one hand and slow down in the automotive sales on the other, affected profitability.

The Company continued its relentless drive towards improving operating parameters, cost cutting, enrichment of product mix and enlarging market network. This helped contain the impact of these factors to some extent.

UNSECURED LOANS:

Particulars	Rs. in Millions 31.03.2012 (12 Months)	Rs. in Millions 31.03.2011 (12 Months)
Deferred Sales Tax	972.100	1046.300
Fixed Deposits	224.100	338.400
Loan from Bank	500.000	0.000
Fixed Deposits	54.300	125.500
Short Term Loans - Banks	1063.000	3889.400
Total	2813.500	5399.600

EXPANSION PROJECTS

Several expansion projects launched in the earlier years went on stream during the year:

Truck Radials

Expansion at Mysore for further enhancing the capacity to 10 lac tyres p.a. was completed.

Chennai Project

The new green site all radial plant at Chennai went on stream towards the end of the year. This facility with a capacity of 25 lac Car radials p.a. and 2 lac Truck/ Bus radials p.a., will strengthen our market presence significantly in the year ahead. The coming financial year shall have the benefit of enhanced production from this Plant.

Another expansion of Chennai Tyre Plant by 2 lac Truck/Bus radials p.a. has been undertaken, which is expected to go on stream during the current year.

With the completion of the above projects, the turnover of the Company is expected to increase significantly in the current year, cementing Subject's leadership in Radials.

Plans have been drawn for further enhancing capacity of Chennai Tyre Plant, both for Passenger Car Radial and Truck Radial tyres.

SUBJECT-MOVING AHEAD

Inspite of difficult and challenging year for the Tyre Industry, Subject continued to march ahead driven by continued zest for growth;

· Turnover from Indian Operations at Rs.61520.000 Millions grew by 17% and consolidated Turnover including JK Tornel, Mexico at Rs.74560.000 Millions - up 16%,

· Total exports from India and Mexico crossed Rs.10000.000 Millions, an increase of 35% over previous year.

· Subject maintained its leadership position as India's No.l in Truck and Bus Radial tyre manufacturer. 27% of Company's production in Truck/Bus tyre category is already radialised. This position will be further strengthened with the commissioning of its new capacities at Mysore and at the new all radials Chennai plant,

· A number of new size of Ultra Large OTR tyres were introduced, for various dumpers and loaders. Their performance have been applauded by the users.

· Once again "Subject" has been selected as a "Super Brand" and continues to be India's first and only Tyre Super Brand.

· Subject partnered in the first ever Formula 1 championship held in India. It has acquired the rights of renowned world series 'Formula BMW Pacific' which is now known as "JK Racing Asia Series" with the participating cars racing on speclaiy made Subjects'. The race was run along with the First ever Formula 1 championship held In India,

TRUCK/BUS RADIALISATION

It Is Indeed heartening to note that radlallzatton of truck/bus segment Is now catching up fast with current radlallzatlon being at 19%, which Is expected to Increase significantly to 35% In the next couple of years,

The Company envisioned this much earlier, built capacttles and continues to be the Truck/Bus Radials' leader In India. Already 27% of the Truck/Bus tyre production at Subjects Is that of Radials.

JK TREAD

Doubling of capacity of retread material was completed during the year, as planned. The Company markets Its retreading services under the brand JK Tread'. The network of franchises has been expanded across the country which offer end-to-end solutions to customers for retreading, both Bias as well as Radial truck/bus tyres.

EXPORTS

The Company exports Its products to over 80 countries across the six continents, offering Its wide range of products. During the year, the Company's export registered an increase of 41% with exports at Rs.5900.000 Millions,

In addition to exports from India It also exports tyres from JK Tomel, which amounted to Rs.4280.000 Millions, thus the total exports were at Rs.10180.000 Millions.

JKTORNEL

JK Tornel, Mexico, recorded a Sales of 3447 Mn Pesos [Rs.13040.000 Millions) a growth of 13% over previous year. JK Tornel continues to Improve Its operations In several areas. There was significant Increase In the production of Passenger Car Radials. Plans have been drawn to expand Passenger Car Radials capacity to meet the growing demand In this segment.

JK Tornel has entered for the first time In the highly competitive and prestigious passengers Car Radial OE segment for supply of tyres to Chrysler and Nissan after a rigorous OEM approval procedure.

Slow recovery in the American markets as well as Increased costs and foreign exchange rate volatility faced during the year was a challenge for JK Tornel.

JK Tornel enhanced fts exports to North and South American markets, ft also exports tyres In "JKTYRE" brand in addition to its range of "TORNEL" branded tyres.

MOTORSPORTS

The year 2011 was a remarkable one for Indian Motorsport and for Subject, in particular. The highest echelon of motorsport-Formula 1 was successfully hosted in India. It was a proud moment for the Company to be a part of the biggest motorsport extravaganza and to join the most coveted club of top brands of the world.

During the year, the Company acquired the Formula BMW Series and rechristened it as the JK Racing Asia Series (JKRAS). With this acquisition, Subject created history in Indian Motorsport by becoming the first Indian company to acquire an FIA accredited series.

At the 2011 inaugural season, the JKRAS was a support race at the Formula One Grand Prix in Malaysia, Singapore and India, providing exposure to the young racing talents to prove their mettle in front of motorsports fraternity.

These races had a very large viewership across the globe, providing Subject an excellent platform for reinforcing its presence in the Motorsports which added significant value to Subject brand

AWARDS

During the year, the Company received several coveted awards. To mention a few, the Company received GOLDEN PEACOCK AWARD for "ENVIRONMENT MANAGEMENT", Asia's best Employer Branding Awards 2011 for "TALENT MANAGEMENT" and Greentech Environment Award - "CATEGORY GOLD". Subject has been selected as a Super Brand once again and continues to be India's first and only Tyre Super brand. Subject has also been recognized as an Indian Power brand. It is heartening to note that Dr. Raghupati Singhania, Vice Chairman and Managing Director of the Company received "CORPORATE ICON OF THE YEAR AWARD" by IIPM POWER BRAND.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

The last 12 months have been very challenging for the Indian economy. Managing growth and price stability were the major concerns of macroeconomic management. The Indian economy is estimated to grow at 6.9% in 2011-12, after having grown at the rate of 8.4% in each of the two preceding years clearly indicating a slowdown in the economic activity during the year. At the same time, by any inter-country comparison, India still remains amongst the front runners. With agriculture and services continuing to perform well, Indian's slowdown can be attributed largely to weakening industrial growth. The manufacturing sector grew by 2.7% and 0.4% in the 2nd and 3rd Quarters respectively. The all time high current account deficit has led to depletion of forex reserves as a percentage of GDR This has resulted in foreign exchange rate volatility with its consequential impact on costlier imports and thus higher domestic input costs.

In a bid to control inflation, RBI tightened the Monetary Policy leading to frequent and steep increase in interest rates. Though the inflation has slowed down, this has severally dented growth.

The global economies are still facing uncertainties of slowdowns, however, for the Indian economy, the outlook for growth and price stability at this juncture looks more promising. There are signs from some indicators that the weakness in economic activity has bottomed out and a gradual upswing is imminent.

AUTOMOTIVE INDUSTRY

The slowdown in the Indian economy had a direct impact on the Automotive sector. The buoyancy as seen in the past few years waned off to a large extent, The Truck/Bus segment witnessed a lower growth of 7%, however the Light Commercial Vehicle and Small Commercial Vehicle segment, providing the last mile connectivity, witnessed growth of over 25% and 35% respectively. High interest rates led to Car sales slowing down to a meager 2.7% growth after many years of sustained high growth. Increased gap in the cost of petrol and diesel led to a demand pattern shift in favour of diesel vehicles. Two three wheelers also witnessed a slower growth at 15%.

TYRE INDUSTRY SCENARIO

While the Tyre Industry in India is expected to have a top line growth during this year, the slowdown and the increase in the input costs as well as exchange rate volatility has affected the profitability of the industry.

The overall Truck and Bus Tyre demand remained more or less stagnant, however, with growing radialisation in this segment, the demand for Truck/Bus radials grew by 8%. Radialisation in Truck/Bus segment was 19% and is expected to increase substantially to reach 35% in the next couple of years. This structural change in the market is reducing demand for Bias Truck/Bus tyres, thereby increasing competition in this segment,

The LCV along with Small Commercial Vehicle (SCV) segment grew by 23%.

The demand for Passenger Radials slowed down considerably and grew by merely 2.7% during the year,

In a bid to cater to changing demand patterns across all vehicle segments there is a proliferation of models across the segments, and the tyre industry is well equipped to meet these needs of the OEMs and the aftermarket, Tyre exports from India increased by approximately 50% and is likely to cross Rs.40000.000 Millions mark,

RAW MATERIALS

During the year, raw material prices continued to increase, practically throughout the year with Natural Rubber prices attaining the unprecedented levels. Most of the raw materials for the tyre industry are petro based. Spiralling prices of oil triggered the prices of Synthetic Rubber, Carbon Black, Fabric etc. Natural Rubber demand in India was much higher than the production, thereby necessitating sizeable quantities to be imported by the tyre industry.

Moreover, depreciation of the rupee by 14% added to the burden, particularly on cost of imported raw materials. The increasing trend of input costs during the year impacted the profitability of tyre manufacturers in the country.

The Company continues to deploy innovative methods to meet this challenge, of unabated cost increase, by developing alternate materials, cost effective global sources and vendor relationship management, Working capital management remained an area of focus throughout the year, to partly overcome higher unit costs as well as steep increase in the rates of interest.

SUBJECT

Subject, the pioneers of radials in India, continues to march on relentlessly with strategic expansion and investments in the Truck Bus radial and PCR segments as the key to future growth. The year saw completion of various expansion projects as under:

Truck/Bus Radial tyre capacity at Mysore was further expanded to 10 lac tyres p.a. Production from the expanded capacity has started during the year.

The ultra modern state-of-the-art all Radials plant near Chennai went on stream during the year. This plant slated to annually produce 25 lac Car Radial tyres p.a. and 2 lac Truck/Bus Radials p.a. shall start regular production in the beginning of the next financial year.

The Chennai Tyre plant is being further expanded by enhancing Truck Radial production to 4 lac tyres p.a, This additional capacity will start becoming available from the last Quarter of calendar year 2012.

TRUCK/BUS RADIAL

Truck/Bus Radials are growth drivers for the industry and are expected to witness a demand growth of around 40% in the financial year 2013. Subject, leader in this segment has further strengthened its position with the commissioning of its new capacities at Mysore and at the new all Radials Chennai plant.

New products such as, JDH Star series for heavy load, JDL series for high speed long-haul and JUC2 series for all-wheel applications were introduced, to cater to the rapidly radialising market in this segment.

Subject has been running a unique Fleet management programme for the last several years, to provide service for its tyres at transporters' premises, in order to help them derive optimum value and mileage from its tyres. This is also an effective tool to build relationship with the valued customers. In addition to several customer centric programmes and meets undertaken by the Company throughout the year.

In an initiative to help mitigate shortage of qualified truck drivers and help the transporters, the Company has conducted 300 Driver training programmes to enhance their skill sets.

"JK TYRE TRUCK WHEELS" a new concept for providing "Total Tyre Solutions" was launched, and 6 such TRUCK WHEELS started functioning during the year, which provide repair, retread, wheel alignment and balancing and other allied services.

The Company provides tyre repair and care facility to its customers through a chain of "JK Truck Radial Tyre Care Centres" located along major National Highways in the country - which operate 365 days/24 hours, for repair and care of tyres.

TRUCK BIAS

Radialisation of the Truck/Bus tyre segment, though, has been making in-roads in the Bias tyre segment, the cross ply tyres still constitute a large portion of commercial tyres, accounting for over 80% in this segment.

The Company's leading products i.e.. Jet Extra, Jet One and Jet R Miles enjoy high consumer preference and confidence, and contribute to significant volumes in this segment. Keeping in mind the continuing importance of this segment, a Fleet management programme for Truck Bias Fleets as well, has been undertaken.

LIGHT (LCV)/ SMALL COMMERCIAL VEHICLE (SCV)

The LCV/SCV segments have achieved healthy growth and are expected to further grow at 25% and 30% respectively during the current year. In view of this, Subject expanded the capacity of LCV/SCV tyres by 25%. New product offerings, in Jumbo King series were made. Special consumer connect initiatives were undertaken at a national level to reinforce relationships with trucking community In this segment.

PASSENGER CAR RADIALS

Getting closer to the customer and delivering wide range of high quality products, and Brand Building, have been thrust areas in the PCR segment.

Various customer connect programmes were undertaken across the country. One such tyre care initiative was "Cool Wheels", which was conducted in top 20 cities across the country at major dealer outlets.

The Company has been expanding the footprint of its unique one stop retail outlets - "JK Tyre STEEL WHEELS" -spread over 80 cities across the country. These outlets have been providing integrated services for tyre care such as, alignment, balancing, automated tyre changing etc., in addition to offering the wide Subject range, under one roof.

With the Car industry introducing large number of models throughout the year, Subject introduced several new products to meet such emerging needs. ULTIMA NXT, a high performance tyre made significant impact in the market. The market is transforming into more and more Tubeless tyres which were pioneered by Subject in India several years ago.

Subject is a leading supplier of Car Radials to most of the car manufacturers in India, including General Motors, Maruti Suzuki, Volkswagen, Nissan, Fiat, Mahindra, Tata Motors etc. The Car radial tyre demand is expected to grow by 12% in the coming year. The recent addition of all Radials plant at Chennai will help the Company to capture this growing demand.

Subject has once again been selected as a 'Super Brand' and continues to be India's first and only Tyre Super Brand. Subject has been recognised as an Indian "Power Brand". During a nationwide survey conducted b/Readers Digest, Subject rra been voted as a "Trusted Brand".

FARM

Subject has reached out to the Farm community by active participation in a number of Kfean Melas at various locations. Rural Brand Ambassadors designated as "Sona Singh' have been appointed to promote JK Farm Tyres, which has been well appreciated by the Farming community.

OTR (Off the Road Tyres)

The Company continues to be a leading player in this segment. During the year, it introduced several new Ultra Large OTR tyres for different load segments of Dumpers and Loaders.

Subject participated in the International Mining Exhibition (IME), showcasing amongst others, its largest Ultra Large OTR tyre in the size 40.00-57, which is used by 240 Ton capacity Dumpers. These Ultra Large OTRs generated immense interest among the users.

The Company has introduced a programme on Comprehensive Tyre Management - "TOTAL SOLUTION" which will help in achieving optimum tyre usage with reduced downtime, thereby maximising productivity of OTRs.

JK TORNEL

Tyre business in Mexico has been challenging in last twelve months with economy growing at 3.5% coupled with large imports of tyres particularly from China at low rates. In the current year, markets are showing steady growth and JK Tornel has been able to take benefit of this increased demand. JK Tornel has entered for the first time in the highly competitive and prestigious Passenger Car Radial OE segment for supply of tyres to Chrysler and Nissan after a rigorous OEM approval procedure. JK Tornel has tied up with world renowned retail chains like WALMART, BODEGA and TIRECO, for selling its wide range of Passenger Radial tyres through their outlets in Mexico as well as Americas.

JK TREAD

Subject had entered Truck/Bus Radial retreading segment some time back. During the year, several new low weight tread patterns were introduced which have received resounding acceptance in the market. Encouraged by its success, the capacity for production of the retreading material was doubled during the year. The Company markets brand "JK Tread" through a network of franchises, which has been further expanded during the year. Thus, Subject provides end-to-end solutions to its customers for retreading, both Bias as well as Radial Truck/Bus tyres, thereby enhancing its brand value.

MOTORSPORT

Years back, Subject identified motorsport as a springboard for its brand promotion. These efforts not only paid rich dMdends in terms of leveraging the brand equity but also has been means for continuous feedback on the products evaluated by world class champions in most demanding conditions. In the process, Subject has been nurturing Indian talent, through Kartlng and Racing championships in India and has churned out Indian drivers, such as Narain Karthiheyan, Karun Chandhok and Armaan Ebrahim and many more, who have qualified and participated in the global arena of motor racing including Formula 1, the apex racing event in the world.

During the year, the Company recorded its highest ever sales. However, all round increase in the raw material costs, steep increase in the interest rates and a significant rupee depreciation affected profitability.

CONTINGENT LIABILITIES (AS ON 31.03.2011):

Contingent liabilities in respect of claims not accepted and not provided for Rs. 376.400 Millions. (Previous year: Rs. 376.400 Millions.) pertaining to Excise duty matters in appeal Rs. 44.500 Millions., Service tax matters Rs. 14.900 Millions., Sales Tax matters in appeal Rs. 34.000 Millions., Income tax matters in appeal Rs. 67.600 Millions and other matters Rs. 215.400 Millions. (Previous year: Rs. 43.900 Millions Rs.13.000 Millions Rs. 23.600 Millions, Rs. 67.600 Millions. and Rs. 208.300 Millions respectively).

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012 (STANDALONE)

(Rs. In Millions)

SI. No.		Quarter Ended		Nine Months Ended
	PARTICULARS	31.12.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
	PART I
1	INCOME FROM OPERATIONS:
(a)	GROSS SALES	14077.100	14519.900	44273.200
	LESS : EXCISE DUTY ON SALES	1337.200	1386.900	4262.100
	NET SALES	12739.900	13133.000	40011.100
(b)	OTHER OPERATING INCOME	75.000	86.600	253.400
	TOTAL (1)	12814.900	13219.600	40264.500
2	EXPENSES:
(a)	COST OF MATERIALS CONSUMED	9445.700	10627.700	31064.300
(b)	PURCHASES OF STOCK-IN-TRADE	106.800	120.300	356.700
(c)	(INCREASE) / DECREASE IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE	(494.200)	(1321.600)	(2473.100)
(d)	EMPLOYEE BENEFITS EXPENSES	803.600	831.800	2422.900
(e)	DEPRECIATION AND AMORTISATION EXPENSE	268.300	266.300	797.900
(f)	OTHER EXPENSES	1777.100	1885.100	5382.800
	TOTAL (2)	11907.300	12409.600	37551.500
3	PROFIT / (LOSS) FROM OPERATIONS BEFORE OTHER INCOME, FINANCE COSTS & EXCEPTIONAL ITEMS (1-2)	907.600	810.000	2713.000
4	OTHER INCOME	30.000	34.500	94.900
5	PROFIT / (LOSS) BEFORE FINANCE COSTS AND EXCEPTIONAL ITEMS (3+4)	937.600	844.500	2807.900
6	FINANCE COSTS	530.400	480.400	1475.500
7	PROFIT / (LOSS) AFTER FINANCE COSTS BUT BEFORE EXCEPTIONAL ITEMS (5-6)	407.200	364.100	1332.400
8	EXCEPTIONAL ITEMS - GAIN / (LOSS)	(106.700)	08.200	(298.800)
9	PROFIT / (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAX (7+8)	300.500	372.300	1033.600
10	TAX EXPENSE
	- PROVISION FOR CURRENT TAX	60.100	74.200	206.500
	-MAT (CREDIT)/REVERSAL	(60.100)	(74.200)	(206.500)
	-PROVISION FOR DEFERRED TAX	89.100	112.400	315.200
11	NET PROFIT / (LOSS) FROM ORDINARY ACTIVITIES AFTER TAX (9-10)	211.400	259.900	718.400
12	EXTRAORDINARY ITEM (net of Tax Expense)	-	-	-
13	NET PROFIT / (LOSS) FOR THE PERIOD (11-12)	211.400	259.900	718.400
14	PAID-UP EQUITY SHARE CAPITAL (Face Value : Rs 10/- per share)	410.600	410.600	410.600
15	RESERVES EXCLUDING REVALUATION RESERVE
16	EARNINGS PER SHARE (of Rs. 10 each) (before / after extraordinary items)
	-BASIC AND DILUTED	5.15	6.33	17.50
	PART II
A	PARTICULARS OF SHAREHOLDING
1	PUBLIC SHAREHOLDING
	-NUMBER OF SHARES	21619865	21619865	21619865
	- PERCENTAGE OF SHAREHOLDING	52.66	52.66	52.66
2 (a)	PROMOTERS AND PROMOTER GROUP SHAREHOLDING PLEDGED/ENCUMBERED
	-NUMBEROF SHARES	Nil	Nil	Nil
	- PERCENTAGE OF SHARES	-	-	-
(b)	NON – ENCUMBERED
	-NUMBEROF SHARES	19439481	19439481	19439481
	- PERCENTAGE OF SHARES (as a % of the total Shareholding of Promoter & Promoter Group)	100	100	100
	- PERCENTAGE OF SHARES (as a % of the total share capital of the company)	47.34	47.34	47.34
B	INVESTOR COMPLAINTS
	PENDING AT THE BEGINNING OF THE QUARTER	NIL
	RECEIVED DURING THE QUARTER	NIL
	DISPOSED OF DURING THE QUARTER	N.A.
	REMAINING UNRESOLVED AT THE END OF THE QUARTER	NIL

NOTES:

· The Company has only one business segment namely, Tyre'.

· For the quarter, exceptional items of Rs.106.700 Millions include net impact of unfavorable foreign exchange rate, Rs. 99.500 Millions, net loss on sale of certain assets, Rs. 0.500 Million. and expenditure on VRS, Rs.6.700 Millions.

· Figures for the corresponding previous periods have been regrouped / rearranged, wherever necessary.

· The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 7th February, 2013. The Auditors of Company have carried out a 'Limited Review' of the same.

FIXED ASSETS:

• Freehold Leasehold Land
• Buildings
• Plant and Machinery
• Office Equipments
• Furniture and Fixtures
• Vehicles
• Software

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.53.94
UK Pound	1	Rs.82.77
Euro	1	Rs.71.05

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.