MIRA INFORM REPORT

Report Date :

12.08.2013

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) :	31.12.2012
Date of Incorporation :	14.10.1982
Com. Reg. No.:	55-129877
Capital Investment / Paid-up Capital :	Rs.270.000 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 :	927 (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 25162000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a fine track record. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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	ICRA
Rating	Long Term Rating: AA
Rating Explanation	Having high degree of safety regarding timely servicing of financial obligation it carry very low credit risk.
Date	April, 2013

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 :	#96, Sector 32, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-124-4415600
Factory 1 :	Two Wheelers Royal Enfield, Thiruvottiyur High Road, Post Box No.5284, 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 31.12.2012

Name :

Mr. S. Sandilya

Designation :

Chairman

Name :

Mr. Siddhartha Lal

Designation :

Managing Director and Chief Executive Officer

Date of Birth/ Age :

39 Years

Qualification :

PGDME, MSc. (Automotive Engg.)

Experience :

16 Years

Date of commencement of employment :

May, 2001

Name :

Mr. 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 :	45 Years
Qualification :	CA and MBA
Experience :	19 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 :	49 Years
Qualification :	B. Sc, MS, Ph. D
Experience :	24 Years
Date of commencement of employment :	December, 2008
Name :	B. Govindarajan
Designation :	Senior Vice President - Industry
Date of Birth/ Age :	44 Years
Qualification :	B.E, PGDMM
Experience :	23 Years
Date of commencement of employment :	June, 2011
Name :	N. Krishnan
Designation :	Senior Vice President - Product
Date of Birth/ Age :	53 Years
Qualification :	B.E, MS
Experience :	28 Years
Date of commencement of employment :	June, 2011
Name :	Shaji Khoshy
Designation :	Senior Vice President - Marketing
Date of Birth/ Age :	52 Years
Qualification :	B. Tech
Experience :	27 Years
Date of commencement of employment :	May, 2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

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	55.19
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14902730	55.19
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2743574	10.16
Financial Institutions / Banks	1124	0.00
Insurance Companies	448727	1.66
Foreign Institutional Investors	3478786	12.88
Sub Total	6672211	24.71
(2) Non-Institutions
Bodies Corporate	200615	0.74
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2536369	9.39
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	413448	1.53
Any Others (Specify)	2275610	8.43
Foreign Corporate Bodies	2275610	8.43
Sub Total	5426042	20.10
Total Public shareholding (B)	12098253	44.81
Total (A)+(B)	27000983	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)	27000983	0.00

BUSINESS DETAILS

Line of Business :

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

Brand Names :

EICHER ROYAL ENFIELD

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 :

927 (Approximately)

Bankers :

• HDFC Bank Limited
• Indian Overseas Bank
• ICICI Bank Limited
• State Bank of India
• National Westminister Bank Plc, London, UK

Facilities :

Secured Loans	31.12.2012 (Rs. in Millions)	31.12.2011 (Rs. in Millions)
SHORT-TERM BORROWINGS
- From bank
Cash credit [Rs.200.100 millions (Rs.65.000 millions) secured by a first charge by way of hypothecation of all current assets of the Company.]	200.100	65.000
Total	200.100	65.000

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Gurgaon, Haryana, India
Subsidiary Company :	VE Commercial Vehicles Limited (VECVL)
Subsidiary company of VECVL :	Eicher Engineering Solutions, Inc., U.S.A. (EES, Inc.)
100% subsidiary company of EES, Inc. :	Hoff Automotive Design (Beijing) Company Limited (Hoff Beijing)
100% subsidiary company of EES, Inc. :	Hoff Auto Design (Shanghai) Company Limited (Hoff Shanghai)
Significant influence of key management personnel in the company :	Eicher Goodearth Private Limited (EGPL)
Joint Venture Company :	Eicher Polaris Private Limited (w.e.f. October 10, 2012)

CAPITAL STRUCTURE

As on 31.12.2012

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, Subscribed & Paid-up Capital ::

No. of Shares	Type	Value	Amount
27000983	Equity Shares	Rs.10/- each	Rs.270.000 millions

The Company has issued only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

Particulars	As at December 31, 2012
	No. of Shares	Amount (Rs. in millions)
At the beginning of the year	26992583	269.900
Issued during the year - ESOP	8400	0.100
Outstanding at the end of the year	27000983	270.000

Details of shareholders holding more than 5% equity shares in the Company

Particulars	As at December 31, 2012
	No. of Shares	% holding in the class
The Lal Family Trust	4056482	15.02%
Eicher Goodearth Trust	3271723	12.12%
Anita Lal	3023167	11.20%
The Simran Siddhartha Tara Benefit Trust	2743346	10.16%
Aktiebolaget Volvo (PUBL), Volvo, Sweden	2275610	8.43%

Aggregate number of shares issued for consideration other than cash and shares bought back during five years immediately preceding the reporting date:

Particulars	Aggregate number of shares As at December 31, 2012
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 merger of Residual Eicher Goodearth Investment Limited into the Company which became effective on November 12, 2009 from the appointed date i.e. January 1, 2009.	14032764
Equity shares of face value of Rs. 10 each fully paid up bought back and extinguished during the year ended December 31, 2009 in accordance with Section 77A of the Companies Act, 1956.	1408969

Employee stock option plan

a. 177000 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 6400 options are outstanding at year end. During the year, Nil 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. 208900 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 63,500 options are outstanding at year end. During the year, 8400 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. 40000 options on April 29, 2010, exercisable over a period of seven 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. 132200 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. During the year, 3000 equity shares were forfeited.

f. 12600 options on February 11, 2012, exercisable over a period of seven years after vesting on February 11, 2015 at an exercise price of Rs.1770 (including premium of Rs.1760) per option are outstanding as at year end.

g. 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	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	270.000	269.900
(b) Reserves & Surplus	6020.500	5130.500
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	6290.500	5400.400
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	5.800
(b) Deferred tax liabilities (Net)	62.600	39.200
(c) Other long term liabilities	32.300	27.300
(d) Long-term provisions	92.600	80.900
Total Non-current Liabilities (3)	187.500	153.200
(4) Current Liabilities
(a) Short term borrowings	200.100	136.700
(b) Trade payables	1775.000	1058.700
(c) Other current liabilities	1168.100	595.100
(d) Short-term provisions	621.200	479.700
Total Current Liabilities (4)	3764.400	2270.200
TOTAL	10242.400	7823.800
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1338.300	1097.500
(ii) Intangible Assets	38.700	25.500
(iii) Capital work-in-progress	603.300	42.100
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	109.400	54.400
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	613.000	348.100
(e) Other Non-current assets	61.800	57.600
Total Non-Current Assets	2764.500	1625.200
(2) Current assets
(a) Current investments	6384.500	5125.700
(b) Inventories	754.100	452.700
(c) Trade receivables	62.000	41.000
(d) Cash and cash equivalents	35.000	29.800
(e) Short-term loans and advances	239.400	138.700
(f) Other current assets	2.900	410.700
Total Current Assets	7477.900	6198.600
TOTAL	10242.400	7823.800

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		269.400
2] Capital Suspense		0.000
3] Reserves & Surplus		4297.300
4] (Accumulated Losses)		0.000
NETWORTH		4566.700
LOAN FUNDS
1] Secured Loans		143.600
2] Unsecured Loans		31.100
TOTAL BORROWING		174.700
DEFERRED TAX LIABILITIES		22.300
TOTAL		4763.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		717.500
Capital work-in-progress		30.600
INVESTMENT		4639.800
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	282.300
	Sundry Debtors	36.400
	Cash & Bank Balances	111.000
	Other Current Assets	3.300
	Loans & Advances	528.100
Total Current Assets		961.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	907.700
	Other Current Liabilities	266.800
	Provisions	410.800
Total Current Liabilities		1585.300
Net Current Assets		(624.200)
MISCELLANEOUS EXPENSES		0.000
TOTAL		4763.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Revenue from operations (net)	10492.600	6714.500	4384.700
		Other Income	457.800	767.800	583.800
		TOTAL (A)	10950.400	7482.300	4968.500
Less	EXPENSES
		Cost of raw materials and components consumed	6973.800	4598.400	3968.800
		Change in inventories of finished goods and work-in-progress	(212.700)	(144.000)
		Employee benefits expenses	788.600	510.400
		Other expenses	1488.600	948.800
		TOTAL (B)	9038.300	5913.600	3968.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1912.100	1568.700	999.700
Less	FINANCIAL EXPENSES (D)		2.600	20.200	25.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1909.500	1548.500	974.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		171.500	130.200	107.900
	PROFIT BEFORE TAX (E-F) (G)		1738.000	1418.300	866.100
Less	TAX (H)		290.400	172.800	111.700
	PROFIT AFTER TAX (G-H) (I)		1447.600	1245.500	754.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3816.200	3131.100	2752.400
Less	APPROPRIATIONS
		Proposed dividend	540.000	431.900	296.300
		Corporate dividend tax	21.400	3.900	4.000
		Transfer to General reserve account	144.800	124.600	75.400
	BALANCE CARRIED TO THE B/S		4557.600	3816.200	3131.100
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (FOB Value)
		- Two wheelers	531.800	434.000	329.600
		- Gears, spares and components	17.100	19.000	17.900
	TOTAL EARNINGS		548.900	453.000	347.500
	IMPORTS
		Components and spare parts	104.800	82.900	34.000
		Capital Goods	51.900	20.100	43.800
	TOTAL IMPORTS		156.700	103.000	77.800
	Earnings Per Share (Rs.)
	- Basic		53.62	46.18	28.17
	- Diluted		53.31	46.00	28.06

QUARTERLY RESULTS

PARTICULARS	31.03.2013
Type	1^st Quarter
Net Sales	3338.000
Total Expenditure	2747.200
PBIDT (Excl OI)	590.800
Other Income	681.900
Operating Profit	1272.700
Interest	0.500
Exceptional Items	0.000
PBDT	1272.200
Depreciation	59.800
Profit Before Tax	1212.400
Tax	240.400
Provisions and contingencies	0.000
Profit After Tax	972.000
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	972.000

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	13.22	16.65	15.18
Net Profit Margin (PBT/Sales)	(%)	16.56	21.12	19.75
Return on Total Assets (PBT/Total Assets}	(%)	18.24	18.35	51.60
Return on Investment (ROI) (PBT/Networth)		0.28	0.26	0.19
Debt Equity Ratio (Total Debt/Networth)		0.03	0.03	0.04
Current Ratio (Current Asset/Current Liability)		1.19	2.73	0.61

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	Yes
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

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
EICHER MOTORS LIMITED		CBEC	DEFAULTED IN PAYMENT OF CUSTOMS/EXCISE DUTIES	NOTICE ISSUED UNDER SECTION 142 OF CUSTOMS ACT, 1962 01-OCTOBER-2009
EICHER MOTORS LIMITED		BSE	DID NOT SUBMIT SHAREHOLDING PATTERN UNDER PROVISIONS OF CLAUSE 35 FOR THE QUARTER ENDED 31-DECEMBER-2008	PUT UP ON BSE WEBSITE FOR PUBLIC NOTICE 31-DECEMBER-2008	NOT APPEARING IN THE LIST FOR THE QUARTER ENDED 31-MARCH-2009
EICHER MOTORS LIMITED	ASHA RAM HARINDER MALIK K.S. MALIK MUKESH BEDI PRAMOD GULATI S.S. BEDI	DRT	DEFAULT OF DUES	NOTICE BY PAPER PUBLICATION DEBTS RECOVERY TRIBUNAL,LUCKNOW 05-SEPTEMBER-2005

Unsecured Loans	31.12.2012 (Rs. in Millions)	31.12.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Deposit from public	0.000	1.000
Sales tax deferral	5.800	5.800
Less: Current maturities of long-term borrowings	(5.800)	(1.000)
SHORT-TERM BORROWINGS
Short-term loan from bank	0.000	71.700
Total	0.000	77.500

FINANCIAL RESULTS

The Company achieved an impressive top line growth during the financial year 2012 with total revenue from operations (net) at Rs.10492.600 millions. The profit before depreciation and interest amounted to Rs.1454.300 millions, which is 13.9% of the total revenue. After accounting for interest and dividend income of Rs.457.800 millions, interest expense of Rs.2.600 millions and depreciation of Rs.171.500 millions, profit before tax amounts to Rs.1738.000 millions. Profit after tax amounted to Rs.1447.600 millions after income tax provision of Rs.290.400 millions.

BUSINESS PERFORMANCE

The Company’s Royal Enfield unit crossed a major milestone of producing and selling 100000 motorcycles in the year 2012.

The Royal Enfield unit sold 52.0% more motorcycles in 2012 as compared to 2011. Total sales volume in 2012 was 113432 motorcycles as compared to 74,626 in 2011. Total revenue from operations (net) for the year was Rs.10492.600 millions, 56.3% growth over the previous year (Rs.6714.500 millions).

Total exports in 2012 were 3,532 units, a growth of 10.4% over previous year.

Net Sales of spare parts and services grew to Rs.1001.400 millions in 2012 from Rs.745.000 millions in the previous year, registering a growth of 34.4%.

This year, the Company launched the all new Thunderbird 500 and Thunderbird 350 motorcycle. These were received by customers with an overwhelming response. The Thunderbird range with its unique 360-degree design language and higher powered engine that has Royal Enfield’s signature flat torque curve, is poised to be the ultimate highway cruiser on the Indian roads. Along with the Thunderbird range of motorcycles, Royal Enfield also launched a range of well-crafted, meticulously detailed, purpose-built riding apparel, marking the brand’s entry into the motorcycle accessories business.

The Company continued to expand its sales, distribution and after-market network in India and abroad. Royal Enfield products are now sold through 249 outlets (last year 190 outlets) in India and exported to 48 countries (last year 36 countries).

MARKET AND FUTURE PROSPECTS

The Indian motorcycle industry slowed down in year 2012. However, the Company’s Royal Enfield unit continued its growth trend in 2012. The exciting variants of Classic models such as Desert Storm and Chrome have expanded the consumer base that look for distinctive style and leisure riding. The New Thunderbird 500 and Thunderbird 350, positioned for long distance riding with value added features, are attracting a wider section of followers and very effective media launches have generated a healthy order book and brand recall. With the market evolving towards motorcycling and leisure riding activities, this growth trend is likely to continue.

JOINT VENTURE

The Company has entered into a strategic joint venture agreement with US -based Polaris Industries Inc. on July 23, 2012, a recognized leader in the powersports industry, to set up a greenfield project in the automotive sector with a 50-50 partnership.

Pursuant to the said Joint Venture Agreement, a Joint Venture Company i.e. Eicher Polaris Private Limited has been incorporated on October 10, 2012 to design, develop, manufacture and market a full new range of personal vehicles. The operations of this joint venture will commence in 2015. The overall investment in the Joint Venture Company over a three-year period will be approximately Rs.2500.000 millions.

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

VECV posted a growth of 6.7% in the year 2012 with total revenue from operations (net) at Rs.52976.300 millions as against Rs.49642.100 millions during the previous financial year ended December 31, 2011. The profit before depreciation and interest amounted to Rs.4104.300 millions at 7.8% of net sales as against operating profit before depreciation and interest of Rs.5117.400 millions during the previous year at 10.4% of net sales, a decline of 19.8%. After accounting for interest income of Rs.880.200 millions (Previous year Rs.1032.200 millions), interest expense of Rs.27.200 millions (Previous year Rs.52.200 millions) and depreciation of Rs.642.500 millions (Previous year Rs.501.500 millions), profit before tax amounts to Rs.4314.800 millions (Previous year Rs.595.900 millions). After providing for tax of Rs.948.200 millions, profit after tax amounts to Rs.3366.600 millions (Previous year Rs.4141.100 millions).

VECV posted a creditable 6.7% growth in net revenue. This is a result of VECV’s success in gaining market share in tough market conditions that saw a sharp drop in the industry’s sales volume. Segment wise industry and VECV’s performance is explained below. Apart from gaining market share and improving the topline, VECV posted a strong financial performance in tough market conditions. It did so by sharp focus on managing costs and working capital.

AN OVERVIEW OF SUBSIDIARY COMPANY’S BUSINESSES

Eicher Trucks and Buses (ETB):

After a good 2011, wherein the Commercial Vehicle industry (5 Tonne and above) grew by 10.1% over the previous year, the industry declined by 11.7% during 2012. Slowdown in new investments and overall industrial production marked the year 2012. As a result, the domestic industry sales volume ended at 360813 units as against 407338 units in 2011, a decline of 11.4%. The total CV industry (including exports) recorded sales of 395180 units as against 2011 sales of 447472 units, a decline of 11.7%.

ETB recorded total sales of 48262 units against 48337 units in 2011, a decline of only 0.2% while gaining market share (including exports) from 10.8% in 2011 to 12.2% in 2012.

Within the domestic CV Industry, the Light and Medium duty truck segment of 5 to 14 Tonne (L&MD), where ETB is a strong player, ended the year 2012 with sales of 94187 units during 2012, a drop of 8.4% over 2011. ETB sold 29541 units in L&MD segment as against 31381 units during 2011 thus recording a drop of 6.2%. This however was better than industry’s performance and ETB’s market share in this segment grew from 30.5% in 2011 to 31.2% in 2012.

The industry’s heavy duty truck segment of 16 Tonne and above (HD) sale also dropped from 237239 units in 2011to 195140 units in 2012, a drop of 17.8% in 2012 as against 12% growth in the previous year. However, ETB continued to grow in the HD truck segment, riding on the success of the VE series fuel efficient trucks and ended the year with a growth of 4.7% in the domestic market over 2011. ETB sold 7699 trucks in 2012 as against 7352 trucks in 2011 in the domestic market. ETB continues to follow sharply focussed strategy of targeting specific geography and segments with the right fit products in order to ensure superior value delivery to its customers.

ETB continued to build on its strong performance in the Bus segment. It recorded its all time high sale of 8521 units, a growth of 31.2% over previous year. This is a result of its efforts to widen its customer base and maintain superior product quality.

ETB exported 2,501 units in 2012 registering a drop of 19.5 % over 2011. This is against the industry drop of 13.2 % in exports.

Volvo Trucks India (VTI)

Volvo Trucks are marketed in niche segments dominated mainly by mining tippers and over dimensional cargo carrying prime movers. Over the years, Volvo Trucks has established a dominant position in this segment. Despite intense competition and pricing pressure in a weakening market due to mining issues, Volvo Trucks has maintained its supremacy through differentiated products and after market offerings driving high customer satisfaction.

Volvo Trucks recorded total sales of 569 units against 706 units in 2011, a decline of 19.3%.

Eicher Engineering Components (EEC)

The domestic components industry witnessed a tough period with slowdown in the automobile Industry. Specifically, all the segments to which EEC is supplying components i.e. Tractors, Commercial Vehicles, Three Wheelers, etc. witnessed lower demand.

The construction of a new plant at Dewas was completed in December 2012 This plant has a capacity of 120000 gears per month and will become fully operational by early 2013.

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) Co. Limited and Hoff Auto Design (Beijing) Co. Limited.

The overall business revenue grew 6.5% over last year. EES successfully generated business from strategic customers and group companies.

MARKET AND FUTURE PROSPECTS OF SUBSIDIARY COMPANY’S BUSINESSES

VE Commercial Vehicles Limited, Eicher Motors 50:50 Joint Venture with AB Volvo, will complete five years in 2013. The journey has been very eventful and the symbiosis has been very clearly experienced by all stakeholders: dealers, suppliers, employees and shareholders. Since its inception in 2008, VECV has made capital investments of more than Rs.13000.000 millions in developing new manufacturing facilities, progressively upgrading of industrial capacity, developing new products and setting up world class systems and processes in all areas of the business. VE Powertrain (VEPT) is the world class engine manufacturing facility with modern design and frugal engineering approach. VEPT is the first plant in India capable of producing Euro 6 engines, with variants of Euro 3/4 and 5. It has state-of-the-art technology with the highest level of automation in India. It has immense strategic importance as it will meet the requirements of Volvo Group’s automotive medium duty engine and Eicher branded HD commercial vehicles. The terminal capacity of the plant would be 1,00,000 engines, to be achieved gradually. The production will commence in the second half of 2013.

The recently installed CED Paintshop is a giant leap in quality. It will ensure best cabin painting finish in the contemporary trucks in India. The corrosion resistance is significantly enhanced. The plant will have a capacity of 72,000 units/year production in the first phase expandable to 100000 units/year in the second phase. ETB’s new state-of-the-art Parts Distribution Centre has become operational. This will significantly enhance ETB’s ability to provide a distinctly superior customer service. The new bus body plant will be completed in the first half of 2013. Increasing ETB’s ability to provide superior product and better value to its customers. ETB continues to make excellent progress on developing new LMD and HD product platforms.

EEC created additional capacities for Transmission Gears by setting up its fourth manufacturing plant at Dewas. This new plant will cater to the requirements needed for increased volumes of ETB, VEPT, Royal Enfield and increased share of business from existing customers.

Eicher Trucks and Buses (ETB)

The year 2012 has been quite an eventful year for ETB. Apart from the excellent progress in various projects, ETB further consolidated its position with gain in market shares in all the segments.

Overall, CV growth in 5 Tonne and above category declined in 2012 as compared to last year. All categories in the heavy duty truck segment witnessed decline as the HD segment contracted by 17.8% in 2012. The high sale of vehicles in 2010 and 2011 in anticipation of high continuing growth has resulted in excess capacity coupled with the postponement of replacement demand owing to the current economic situation. Buses saw a moderate growth of 6.3% in 2012.

ETB recorded an excellent overall performance in 2012 with substantial increase in market share across all product segments. In 2013, the L&MD vehicles are expected to continue their strong contribution. It is also expected that the increasing acceptability and positive customer response to the ‘VE’ series of Heavy Duty trucks and increasing penetration of Heavy Duty buses would provide incremental volumes in 2013 and lead to improved growth prospects in the future. The new product platforms of both L&MD and HD commercial vehicles will provide a significant opportunity to ETB to enhance its customer value proposition.

There is emerging competition but ETB is in a strong position with the large number of products in its portfolio, the population base it has for its vehicles and also a strong, committed and expanding dealer network.

Volvo Trucks India (VTI)

2012 witnessed tough competition with pressure on price realisation. VT FM 480 10x4, the innovative Dump Truck launched from the Volvo stable in October 2012 has evinced strong customer interest. VTI has launched extensive countrywide customer engagement activities focussing on the Value enhancers with the complete new range in Volvo Trucks.

Eicher Engineering Components (EEC)

Growth in business with domestic Original Equipment Manufacturers (OEMs) will be in line with the manufacturing plans of the domestic OEMs. However, owing to a higher share of business with OEMs, development of new products, upgradation of technology and meeting the increasing requirements of new strategic customers would be key for the long term success of EEC.

Eicher Engineering Solutions (EES)

The Engineering Services market continues to be an area of high opportunity and potential for growth. In 2012, EES improved its business from strategic customers and group companies and also deployed global resources for project execution.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELO PMENT

In 2012, the two wheeler industry’s growth rate lowered to 5.2%, after having grown 17.2% in 2011. Within the two wheeler industry, the motorcycle industry grew by 2.0% in 2012, as compared to 16.6% in 2011. The slowdown was witnessed across the two wheeler industry except for the scooter market which grew by 20.6% in 2012.

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

	2012	2011	Growth
Two Wheeler: Industry (Nos.)	15749843	14970591	5.2%
Motorcycles (Nos.):	11966968	11728487	2.0%

Within all motorcycle segments, the growth momentum slowed down in 2012 as compared to 2011.

Segment	Growth in 2012 over 2011	Growth in 2011 over 2010
Economy segment (≤125cc)	2.9%	15.0%
Executive segment (Above 125cc &≤250cc)	-12.2%	20.0%
Premium segment (Above 250cc)	56.5%	71.0%

While the two wheeler industry witnessed a muted growth in last year, the premium segment within the category continued with its upward swing. The trend of leisure motorcycling is evolving across the country, with its adoption by a growing customer population who are aspirational and have increased brand consciousness. This provides the premium motorcycle segment a significant potential for future growth.

The Company’s Royal Enfield unit has an extremely rich global heritage of practical leisure motorcycling of over a hundred years. Royal Enfield is a cult brand globally and has pioneered the leisure motorcycling culture in India. The brand’s positioning and related marketing activities have both delighted the current customers and opened up avenues for attracting new customers. Royal Enfield’s biggest connect with its customers and admirers is through its marquee rides that are organised throughout the year. These rides see participation from a cross-section of its customers and enthusiasts who take time off from their regular routines to ride out on their Royal Enfields to some of the most scenic locales within and outside the country. Riding is also promoted actively at the dealership levels.

Royal Enfield has also substantially expanded and upgraded its network across the country. In 2012 it added 63 new dealerships taking the total dealership network to 249. The Company plans to continue to expand its distribution aggressively over the next few years, so that it is more convenient for Royal Enfield customers to purchase a bike and have it repaired and increasingly so to purchase accessories and apparel as well. The Company’s focus is on providing a very unique, friendly and technically adept experience at its dealerships so that the customer truly appreciates every contact with the Company.

OPPORTUNITIES, THREATS AND OUTLOOK

The mega trends of India’s economic growth will present tremendous opportunities for growth in the motorcycle segment and in leisure biking. The Company’s healthy customer order book provides a clear indication of future growth. In spite of the slowdown across the automobile industry, Royal Enfield has achieved strong growth compared to 2011 and also achieved the record mark of 1,00,000 motorcycles in production and sales in a year for the first time.

2013 will witness the commercialisation of Royal Enfield’s second manufacturing facility at Oragadum, Chennai. Upon completion it will be a state-of-the-art plant in terms of technology, equipment, material work flow and work practises. The Company’s management has planned and executed not only the construction of the facilities but also focussed on upgrading its supply chain to make it more robust and reliable and worked extensively with suppliers to improve the quality of input supplies.

The Company continues to enlarge and enrich its product portfolio. At the 2012 Auto Expo, Royal Enfield previewed its new motorcycle Thunderbird 500 along with a range of well crafted, meticulously detailed and purpose built riding gear, apparels and accessories. These products were subsequently launched in October 2012 across key markets in the country. Along with the Thunderbird 500, Royal Enfield also launched the all new Thunderbird 350 that rides on the same design principle as that of the Thunderbird 500. These products were received exceedingly well by the customers. Both the Thunderbird 500 and the Thunderbird 350 were awarded the ‘Bike of the Year’ in their respective categories by ET Zigwheels and NDTV respectively. Royal Enfield was also recognised as the ‘Two wheeler manufacturer of the year’ and the ‘Bike maker of the year’ by NDTV and ET Zigwheels respectively.

For Royal Enfield, 2013 will also have some exciting products in store. The much awaited Café Racer motorcycle that was showcased at the Auto Expo 2012 will be launched in the second half of 2013. The new Bullet 500 will also be launched in early 2013.

In addition, the Company continues to build infrastructure and resource capability in product development. It is working on new platforms and models for its future range of motorcycles.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.12.2012 (Rs. in millions)	31.12.2011 (Rs. in millions)
a) In respect of demands contested by the Company:
- Excise duty matters	549.900	549.900
- Sales tax matters	104.300	103.800
- Service tax matters	7.700	7.600
- Income tax matters	88.000	141.500
b) Claims against the Company not acknowledged as debts	50.00	45.900
c) Guarantees given to:
A subsidiary, for certain receivables transferred pursuant to Business Purchase Agreement signed by the Company with subsidiary company	--	0.600

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.

RESULTS (STAND-ALONE) FOR THE QUARTER ENDED MARCH 31, 2013

(Rs. in millions)

	Particulars	Quarter Ended 31.03.2013
		(Unaudited)
1	Income from operations
	(a) Gross sales	3698.400
	(b) Less : Excise duty	388.000
	(c) Net sales	3310.400
	(d) Other operating income	27.600
	Total income from operations (net)	3338.000
2	Expenses
	(a) Cost of materials consumed	2135.200
	(b ) Changes in inventories of finished goods and work-in-progress	(22.600)
	(c) Employee benefits expenses	234.600
	(d) Depreciation and amortisation expenses	59.800
	(e) Other expenses	400.000
	Total expenses	2807.000
3	Profit from operations before other income and finance costs (1-2)	531.000
4.	Other income (note no. 2)	681.900
5	Profit before finance costs (3+4)	1212.900
6	Finance costs	0.500
7	Profit before tax (5-6)	1212.400
8	Tax expense (including deferred tax and MAT credit entitlement)	240.400
9	Net Profit after tax (7-8)	972.000
10	Paid-up equity share capital (Face value of each equity share – Rs.10 )	270.000
11.	Reserves as per balance sheet of previous accounting year	--
12.	Earnings per share (of Rs.10 each) (not annualised) in Rs.
	(a) Basic	36.00
	(b) Diluted	35.77
A	PARTICULARS OF SHAREHOLDING
1.	Public shareholding
	- Number of shares	12098253
	- Percentage of shareholding	44.81%
2.	Promoters and Promoter Group Shareholding a) Pledged / encumbered
	- Number of shares	Nil
	- As a percentage of the total shareholding of the promoter and promoter group	Nil
	- As a percentage of the total share capital of the Company	Nil
	b) Non - encumbered
	- Number of shares	14902730
	- As a percentage of the total shareholding of the promoter and promoter group	100%
	- As a percentage of the total share capital of the Company	55.19%

Particulars		Quarter ended
		31.03.2013
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	30
	Disposed of during the quarter	30
	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 and related components", the disclosure requirements of Accounting Standard -17 "Segment Reporting" notified under the Companies (Accounting Standards) Rules, 2006 are not applicable.

2. Upto year ended December 31, 2011, in terms of Old Schedule VI to the Companies Act, 1956, the Company was recognizing income from dividend declared by its subsidiary company i.e. VE Commercial Vehicles Limited (VECVL) even after the date of the Balance Sheet if they were pertaining to the period on or before the Balance Sheet date. This requirement no longer exists in the Revised Schedule VI. Accordingly, the Company as per Accounting Standard - 9 'Revenue Recognition' has decided to recognise dividend from subsidiaries companies as income only when the right to receive dividends is established as on the balance sheet date. Therefore, dividend amounting to Rs.408.000 millions pertaining to the accounting year ended December 31, 2012, declared and approved by VECVL in the current quarter has been recognised as income in the current quarter instead of previous year ended December 31, 2012.

Had the Company recognised dividend from VECVL as income as per Old Schedule VI, the profit for the quarter ended March 31, 2013 would have been lower by Rs.408.000 millions and profit for the year and quarter ended December 31, 2012 would have been higher by Rs.408.000 millions.

3. The figures of the quarter ended December 31, 2012 are the balancing figures between audited figures in respect of the full accounting year and the year to date unaudited figures upto nine months of the previous accounting year.

4. The previous periods'/years' figures have been regrouped/recast wherever necessary to conform to current period's presentation.

5. The above results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors in their meeting held on May 13, 2013.

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 ended March 31, 2013 does not have any impact on the above results.

FIXED ASSETS:

Tangible Assets

· Land – Freehold

· Land – Leasehold

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Office Equipment

· Vehicles

Intangible Assets

· Product Designs, Prototypes etc.

· Computer Software

WEBSITE DETAILS:

PRESS RELEASE:

EICHER MOTORS LIMITED ANNOUNCES Q1 RESULTS FOR CY 2013

~For Q1 ending March 31, 2013, total income from operations at Rs.17243.000 millions, EBIDTA at Rs.1705.000 millions and PAT at Rs.1328.000 millions

New Delhi, May 13, 2013:

Eicher Motors Limited today announced the unaudited consolidated financial results for the first quarter ended March 31, 2013.

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

Consolidated Results for quarter ended 31^st March 2013 as compared to quarter ended 31^st March 2012

	Q1 2013	Q1 2012	% Growth
Total income from operations	17243.000	16682.000	3.4%
Earnings before interest and tax (EBIT)	1430.000	1625.000	(12.0%)
EBIT %	8.3%	9.7%
Profit After Tax	1328.000	1634.000	(18.7%)

Note: All figures are Rs. in millions except where specified

Standalone Results for quarter ended 31^st March 2013 as compared to quarter ended 31^st March 2012

	Q1 2013	Q1 2012	% Growth
Total income from operations	3338.000	2214.000	50.8%
Earnings before interest and tax (EBIT)	531.000	268.000	98.1%
EBIT %	15.9%	12.1%
Profit After Tax	972.000*	453.000	114.6%

Note:

- All figures are Rs. in millions except where specified

- *PAT for Q1 2013 includes dividend income of Rs.408.000 millions received from VECVL, a subsidiary company of Eicher Motors Limited

Eicher Motors Limited (EML) reported the following sales numbers and market share (MS) across both its divisions- Royal Enfield and EML’s 50:50 joint venture with the Volvo Group – VE Commercial Vehicles (VECV)

	Q1 2013	Q1 2012	% Growth	MS Q1 2013	MS Q1 2012
VE Commercial Vehicles Limited (VECV)
Eicher Heavy Duty Trucks (16 Tonne and above)	2109	2291	(7.9%)	4.9%
Eicher Light and Medium Duty Trucks (5 Tonne – 14 Tonne)	7639	9189	(16.9%)	30.8%
Eicher Buses (5 Tonne and above)	2188	2043	7.1%	12.3%
Total Domestic Sales- Eicher Trucks and Buses (5 Tonne and above)	11936	13523	(11.7%)	13.9%
Exports	452	672	(32.7%)	--	--
Volvo Trucks	141	94	50.0%	--	--
Total Sales – VECV	12529	14289	(12.3%)	--	--
Royal Enfield
Motorcycles	34736	23899	45.3%	--	--

In Q1 2013, Eicher Motors Limited reported the best ever quarterly total income from operations at Rs 17243.000 millions, an increase of 3.4% over Rs.16682.000 millions in Q1 2012.

Commenting on VECV’s performance Mr. Siddhartha Lal, Managing Director and CEO, Eicher Motors Limited said, “The commercial vehicle industry has been in the midst of a cyclical down-cycle and that has impacted all the players including VECV. This has been a challenging quarter for the CV industry but even in these trying times VECV has continued to outpace the industry and improved its overall CV market share across all industry segments. VECV posted a strong financial performance in tough market conditions by its sharp focus on managing costs and working capital.”

Q1 2013 has been the best ever quarter at Royal Enfield with record sales of 34,736 units, a growth of 45.3% over Q1 2012. This has resulted in a record increase of 98.1% in Earnings before interest and tax (EBIT) for Eicher Motors Standalone., at Rs.531.000 millions in Q1 2013 over Rs.268.000 millions in Q1 2012. In addition, Royal Enfield has been able to get good operating leverage in Q1 2013. It has managed to restrict costs as a result of which the best ever operating margin has been recorded at 15.9%.

Elucidating on Royal Enfield, Mr. Siddhartha Lal, Managing Director and CEO, Eicher Motors Limited said, “Royal Enfield continues to power ahead even in Q1 2013. With its second plant at Oragadam commencing commercial production, Royal Enfield is now prepared for its next level of global growth.

The new facility has been conceived on a much larger tract of land and created with a master-plan that can take the eventual production to over 500,000 per year. With the speedy execution of the first phase of the plan, we will now have a capacity of 175,000 motorcycles in 2013, from both plants. We have already begun working on the second phase of expansion at Oragadam, which will further increase the production capacity to 250,000 motorcycles in 2014. With this new facility, we now have the ability to scale our production quantity quickly in response to market demand.”

“Royal Enfield has launched the new Bullet 500 in a phased manner in April 2013 in India which has been received very well. The much awaited Continental GT will be launched later this year”, he further added.

Concluding his remarks, Mr. Siddhartha Lal, Managing Director and CEO, Eicher Motors Limited said, “At Eicher, our focus has always been on a long term strategy. At VECV, we have been consistently working towards building a futuristic commercial vehicle company. We are actively pursuing all our plans, investing in every aspect of commercial vehicles- building infrastructure and creating a robust pipeline of differentiated products that will be launched starting this year. VECV’s Eicher Engineering Components (EEC) division has recently commenced production at its new Rs.900.000 millions plant in Dewas, Madhya Pradesh. At Royal Enfield, the ability to increase capacity fast and superior quality of motorcycles is a crucial step towards meeting our global ambitions. While we are adding new products and dealerships in the Indian market which is fuelling our growth, we are also working on building our presence globally. Higher investments into brand and distribution, as well as new products that are very appealing to international markets are going to be key for us to achieve global leadership in the mid-size motorcycle category. We are also progressing very well on our 50:50 joint venture with Polaris Industries Inc. where all project milestones are being met as per our plans.”

About Eicher Motors Limited:

Eicher Motors Limited (EML), 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 also manufactures and markets the iconic Royal Enfield motorcycles that leads the premium motorcycle segment in India. The oldest motorcycle company in continuous production, Royal Enfield has witnessed a huge surge in demand in the recent past; recording a growth of over 50% year on year for each of the last two years. EML’s 50:50 strategic joint venture with US based Polaris Industries Inc., Eicher Polaris Private Limited will design, develop, manufacture and sell a full new range of personal vehicles. In 2012, Eicher Motors recorded the highest ever sales of Rs.70000.000 millions (USD 1.3 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.61.12
UK Pound	1	Rs.94.77
Euro	1	Rs.81.54

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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.