MIRA INFORM REPORT

Report Date :

27.02.2013

IDENTIFICATION DETAILS

Name :	BRAKES INDIA LIMITED
Registered Office :	No. 21, Patulas Road, Madras, Chennai – 600002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.11.1962
Com. Reg. No.:	18-004928
Capital Investment / Paid-up Capital :	Rs.239.200 Millions
CIN No.: [Company Identification No.]	U35999TN1962PLC004928
TAN No.: [Tax Deduction & Collection Account No.]	CHEB00159F
PAN No.: [Permanent Account No.]	AAACB2533Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	manufacturer of Automotive and Non-Automotive Braking Systems and Ferrous Castings
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 25960000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Joint Venture between TVS Group and Lucas Industries Plc, UK. It is a well established and a reputed company having good track record. The latest Financial are not made available with the government department. As per previous year’s the financial position of the company appears to be strong. Performance capability seems to be high. Liquidity position of the company is good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A1+ (Commercial Paper)
Rating Explanation	Having very strong degree of safety regarding timely payment of financial obligation its carry lowest credit risk.
Date	May 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	No. 21, Patulas Road, Madras, Chennai – 600 002, Tamilnadu, India
Tel. No.:	91-44-26251861 / 6161 / 8161 / 8116 / 8426
Mobile No.:	91-44-26287010 / 26257844 / 26257010
Fax No.:	bitvs@md2.vsnl.net.in bi-marketing@bipadi.brakesindia.co.in bi_secretarial@brakesindia.co.in
E-Mail :	www.brakesindia.com
Corporate Office :	Padi, Chennai - 600 050, Tamilnadu, India
Tel. No.:	91-44-2625 8161 / 26526000/ 6577
Fax No.:	91-44-26257844 / 7010 / 26248211
E-Mail :	bi-marketing@brakesindia.co.in bi-personnel@brakesindia.co.in bi-sdi@brakesindia.co.in bitvs@md2.vsnl.net.in
Foundry Division:	New No. 5, 4th Main Road, Gandhi Nagar, Adya, Chennai – 600020, Tamilnadu, India
Tel. No.:	91-44-24908719
E-Mail :	bfoundry@besindia.com

DIRECTORS

As on: 07.09.2012

Name :

Mr. Ragavachary Ramanujam

Designation :

Managing Director

Address :

4(old No.17), Parthasarathy Gardens, Chennai – 600018, Tamilnadu, India

Date of Birth/Age :

29.07.1936

Date of Appointment :

02.10.2010

Voter ID :

TN/02/01D/0276654

DIN No.:

00365735

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	U35999TN1962PLC004928	BRAKES INDIA LIMITED	Managing director	02/10/2010	08/01/1975	-	Active	NO
2	U40107TN1982PLC009363	TURBO ENERGY LIMITED.	Director	03/05/1982	03/05/1982	-	Active	NO
3	U32109KA1988PTC009484	ELCO NTTF (INDIA)PRIVATE LIMITED	Director	03/10/1988	03/10/1988	-	Active	NO
4	U40107TN1981PLC008903	TRANS ENERGY LIMITED	Director	31/12/1991	31/12/1991	27/06/2012	Active	NO
5	U74210TN1991PLC021872	ABI-SHOWTECH (INDIA) LIMITED	Director	02/08/1993	02/08/1993	-	Active	NO
6	U29221KA1994PTC015104	NTTF INDUSTRIES Private LIMITED	Director	06/01/1994	06/01/1994	27/03/2008	Active	NO
7	U27209TN1994PLC028326	LIGHT ALLOY PRODUCTS LIMITED	Director	19/12/1994	19/12/1994	-	Active	NO
8	U85110KA1999NPL025461	NETTUR TECHNICAL TRAINING FOUNDATION	Director	30/09/1999	30/09/1999	-	Active	NO
9	U27203TN2005PLC055405	LAP-ROSS ENGINEERING LIMITED	Director	17/02/2005	17/02/2005	-	Active	NO
10	U28113TN2010PLC075244	FLOMETALLIC INDIA LIMITED	Director	05/04/2010	05/04/2010	-	Active	NO
11	U40102TN2013PLC089342	PULIVALAM POWER PLANT LIMITED	Director	11/01/2013	11/01/2013	-	Active	NO

Name :

Mr. Santhanam Viji

Designation :

Managing Director

Address :

71, (Old No.33), Poes Garden, Chennai – 600066, Tamilnadu, India

Date of Birth/Age :

07.06.1946

Date of Appointment :

01.04.2010

Voter ID :

CJJ1001858

DIN No.:

00139043

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	U35999TN1962PLC004928	BRAKES INDIA LIMITED	Managing director	01/04/2010	02/10/1975	-	Active	NO
2	U34101TN1929PLC002973	T.V. SUNDRAM IYENGAR & SONS LIMITED	Director	30/08/1976	30/08/1976	-	Active	NO
3	U65991TN1943PLC002656	SUNDARAM INDUSTRIES LIMITED	Director	30/11/1978	30/11/1978	-	Active	NO
4	L65191TN1954PLC002429	SUNDARAM FINANCE LIMITED	Director	17/01/1986	17/01/1986	-	Active	NO
5	L35921TN1960PLC004175	WHEELS INDIA LIMITED	Director	31/07/1986	31/07/1986	-	Active	NO
6	U28920TN1993PTC025794	SUNDARAM DYNACAST PRIVATE LIMITED	Director	30/10/1993	30/10/1993	-	Active	NO
7	U65922TN1999PLC042759	Sundaram BNP Paribas Home Finance Limited	Director	02/07/1999	02/07/1999	-	Active	NO
8	U67200TN2000PLC045611	ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LIMITED	Director	22/08/2000	22/08/2000	-	Active	NO
9	U65999TN2003PLC052058	SUNDARAM TRUSTEE COMPANY LIMITED	Nominee director	08/12/2003	08/12/2003	-	Active	NO
10	U73100TN2006NPL059651	IIT MADRAS RESEARCH PARK	Additional director	15/12/2009	15/12/2009	-	Active	NO
11	U28113TN2010PLC075244	FLOMETALLIC INDIA LIMITED	Director	05/04/2010	05/04/2010	25/09/2010	Active	NO
12	U74900TN2010PLC076378	BIH BRAKING COMPANY LIMITED	Director	30/06/2010	30/06/2010	-	Active	NO

Name :

Mr. Ramanujam Srikanth

Designation :

Managing Director

Address :

15, Valliammai Aachi Street, Chennai – 600065, Tamilnadu, India

Date of Birth/Age :

19.09.1961

Date of Appointment :

01.04.2010

DIN No.:

00272553

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	U65991TN1981PTC009100	SILVER OAK HOLDINGS PRIVATE LIMITED	Director	26/11/1981	26/11/1981	-	Active	NO
2	U28920TN1993PTC025794	SUNDARAM DYNACAST PRIVATE LIMITED	Director	15/09/1993	15/09/1993	-	Active	NO
3	U35999TN1962PLC004928	BRAKES INDIA LIMITED	Managing director	01/04/2010	29/11/2000	-	Active	NO
4	U85320TN1999NPL041989	YOUNG PRESIDENTS ORGANISATION (CHENNAI CHAPTER)	Director	20/09/2003	20/09/2003	14/08/2010	Active	NO
5	U33111TN1986PLC013633	SHOWA ENGINEERING LIMITED	Director	24/06/2004	24/06/2004	-	Amalgamated	NO
6	U72300TN1993PLC024706	REAL TALENT ENGINEERING LIMITED	Director	24/06/2004	24/06/2004	-	Active	NO
7	U27209TN1994PLC028326	LIGHT ALLOY PRODUCTS LIMITED	Director	02/05/2005	02/05/2005	-	Active	NO
8	U74210TN1991PLC021872	ABI-SHOWTECH (INDIA) LIMITED	Managing director	01/04/2012	17/06/2005	-	Active	NO
9	U45400TN2008PTC069038	ABI PREMISES PRIVATE LIMITED	Director	27/08/2008	27/08/2008	29/09/2008	Active	NO
10	U51909TN2000PLC044441	FORGE 2000 LIMITED	Director appointed in casual vacancy	27/03/2009	27/03/2009	01/07/2010	Active	NO
11	U28113TN2010PLC075244	FLOMETALLIC INDIA LIMITED	Director	09/08/2012	05/04/2010	-	Active	NO
12	U40102TN2013PLC089342	PULIVALAM POWER PLANT LIMITED	Director	11/01/2013	11/01/2013	-	Active	NO

Name :

Mr. Thiruvallur Thattai Srinivasaraghavan

Designation :

Director

Address :

No.9 (Old No. 5), III Street, Kasturi Estate, Chennai- 600086, India

Date of Birth/Age :

19.01.1955

Date of Appointment :

29.08.2008

Voter ID :

TN/02/010/0276585

DIN No.:

00018247

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	L65191TN1954PLC002429	SUNDARAM FINANCE LIMITED	Managing director	27/05/2008	01/02/1998	-	Active	NO
2	U93090TN1996PLC034615	SUNDARAM ASSET MANAGEMENT COMPANY LIMITED	Director	21/05/1999	21/05/1999	-	Active	NO
3	U65922TN1999PLC042759	Sundaram BNP Paribas Home Finance Limited	Director	23/07/2009	02/07/1999	-	Active	NO
4	U67200TN2000PLC045611	ROYAL SUNDARAM ALLIANCE INSURANCE COMPANY LIMITED	Director	22/08/2000	22/08/2000	-	Active	NO
5	U72900TN2000PLC063984	INFREIGHT LOGISTICS SOLUTIONS LTD.	Director	16/08/2002	16/08/2002	-	Active	NO
6	U91990MH2004NPL146931	FINANCE INDUSTRY DEVELOPMENT COUNCIL	Director	14/06/2004	14/06/2004	-	Active	NO
7	U72200TN2005PLC056969	SUNDARAM INFOTECH SOLUTIONS LIMITED	Director	19/07/2005	19/07/2005	-	Active	NO
8	U74140TN2005PLC057179	SUNDARAM BUSINESS SERVICES LIMITED	Director	12/08/2005	12/08/2005	-	Active	NO
9	U99000TN1989NPL016779	INDO-AUSTRALIAN CHAMBER OF COMMERCE	Director	02/09/2005	02/09/2005	27/09/2010	Active	NO
10	U35999TN1962PLC004928	BRAKES INDIA LIMITED	Director	29/08/2008	15/11/2007	-	Active	NO
11	U28113TN2010PLC075244	FLOMETALLIC INDIA LIMITED	Director	02/09/2011	25/09/2010	-	Active	NO
12	U67100TN2010PLC078063	SUNDARAM INSURANCE BROKING SERVICES LIMITED	Director	30/05/2011	15/11/2010	-	Active	NO
13	U74900TN2012PLC087102	SUNDARAM BPO INDIA LIMITED	Director	07/08/2012	07/08/2012	-	Active	NO

Name :

Mr. Sriram Viji

Designation :

Whole-time director

Address :

New No.22 (Old No.20) D'Silva Road, Chennai – 600004

Date of Birth/Age :

01.02.1979

Date of Appointment :

01.06.2012

DIN No.:

03630636

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	U35999TN1994PLC028019	AZTEC AUTO LIMITED	Director	24/09/2011	30/08/2011	28/06/2012	Active	NO
2	U40107TN1981PLC008903	TRANS ENERGY LIMITED	Director	29/09/2011	05/09/2011	27/06/2012	Active	NO
3	U35999TN1962PLC004928	BRAKES INDIA LIMITED	Whole-time director	01/06/2012	24/04/2012	-	Active	NO
4	U72900TN2012PTC088829	Pinpoint Vehicle Systems Private Limited	Director	06/12/2012	06/12/2012	-	Active	NO

Name :

Mr. Keith Ronald Aston

Designation :

Director

Address :

10, Coedeva Mill Cwmbran Torfaen, South Wales, NP 44 7EU, UK

Date of Birth/Age :

08.03.1949

Date of Appointment :

05.10.2002

DIN No.:

00919943

Name :

Mr. William J Vander Roest

Designation :

Alternate Director

Address :

3118, Bluett Road, Ann Arbor, MI, USA 48105-1426

Date of Birth/Age :

05.02.1957

Date of Appointment :

05.09.2011

DIN No.:

00520340

Name :

Mr. Michel Pierre Berthelin

Designation :

Alternate Director

Address :

3118, Blue Road, USA – 48105-1426

Date of Birth/Age :

08.06.1970

Date of Appointment :

01.02.2012

DIN No.:

03419706

Name :

Mr. Jurgen Karl Baro Piza

Designation :

Director

Address :

Auf Dem, Schferlaykopf 6, Bad Breisig – 53498, Germany

Date of Birth/Age :

30.03.1960

Date of Appointment :

07.09.2012

DIN No.:

06374423

Name :

Mr. Matthias Gothe

Designation :

Director

Address :

6823, Domain, West Bloomfied, MI 48322

Date of Birth/Age :

16.08.1972

Date of Appointment :

07.09.2012

DIN No.:

05228303

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	U35119DL2009PTC189941	TRW AUTOMOTIVE INDIA PRIVATE LIMITED	Nominee director	09/08/2012	26/03/2012	-	Active	NO
2	U74899DL1994PTC061253	TRW SUN STEERING WHEELS PRIVATE LIMITED	Nominee director	09/08/2012	26/03/2012	-	Active	NO
3	U35999TN1987PLC014600	RANE TRW STEERING SYSTEMS LIMITED	Nominee director	08/08/2012	23/04/2012	-	Active	NO
4	U35999TN1962PLC004928	BRAKES INDIA LIMITED	Director	07/09/2012	07/08/2012	-	Active	NO

Name :

Mr. Christopher O'reilly Mccormick

Designation :

Alternate director

Address :

22596, Fuller Drive Novi, MI 48374, USA

Date of Birth/Age :

27.08.1964

Date of Appointment :

07.08.2012

DIN No.:

06374501

Name :

Mr. Mario Franz Sabel

Designation :

Alternate director

Address :

Im, Vogelsang 3, 56332 Diabilch, Germany

Date of Birth/Age :

23.03.1970

Date of Appointment :

07.08.2012

DIN No.:

06374534

KEY EXECUTIVES

Name :	Mr. Tirumalachari Narayanan
Designation :	Secretary
Address :	I – 1, Benco Colony, Beasant Nagar, Chennai – 600090, Tamilnadu, India
Date of Birth/Age :	06.05.1959
Date of Appointment :	01.01.1999
PAN No.:	AABPN1218N

MAJOR SHAREHOLDERS

As on: 07.09.2012

Names of Shareholders	No. of Shares
Lucas Industries Limited, West Midlands	1172080
T.V. Sundaram Iyengar and Sons Limited, India	507632
Sundaram Industries Limited, India	239200
Southern Roadways Limited, India	313624
Sundaram Finance Limited, India	159460
R. Ramanujam and Sundaram Finance Limited, India	2
S. Viji and Sundaram Finance Limited, India	2
Total	2392000

Equity Share Break up (Percentage of Total Equity)

As on: 07.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	49.00
Bodies corporate	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

manufacturer of Automotive and Non-Automotive Braking Systems and Ferrous Castings

Products :

Product Description	ITC Code
Brakes and Servo Brakes and Parts there of	87082900
Cast Articles of Iron	73251000
Rubber Seals, Oil Seals	40169303

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Complete Brake Systems	Nos.	9500000	7792113
Castings	MT	80000	75780
Engineering Plastics	MT	6000	2063
Special Purpose Machines and Test Rigs	Nos.	150	123

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HSBC Bank (Mauritius) Limited, 6th Floor, Hsbc Centre, 18, Cyber City, Ebene – Na, Mauritius

· State Bank Of India, Cag Branch, 3rd Floor,Sigappi Achi Building, Rukmini Lakshmipathy Road, Chennai - 600008, Tamil Nadu, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	662.897	948.262
Foreign currency loans banks secured	1375.600	1008.120
Working capital loans banks secured	1365.729	631.857
Total	3404.226	2588.239

Banking Relations :	--
Auditors :
Name :	Sundaram and Srinivasan Chartered Accountants
Address :	23, C. P. Ramaswamy Road, Alwarpet, Chennai - 600018, Tamilnadu, India
PAN.:	AAAFS8812J
Associates:	T.V.Sundram Iyengar and Sons Limited Lucas Industries Limited T R W Automotive Inc. and Associates Turbo Energy Limited Sundaram Dynacast Private Limited Sundaram Medical Foundation
Joint Venture :	BIH Braking Company Limited
Subsidiaries :	Showatech, Inc. USA The Dunes Oman LLC (FZC)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Share	Rs.100/- Each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2392000	Equity Share	Rs.100/- Each	Rs.239.200 Millions

NOTE

Of the above

i) 66086 Equity Shares of Rs. 100 /- each allotted for consideration other than cash.

ii) 2162000 Equity Shares of Rs. 100 /- each allotted as fully paid up Bonus Shares by capitalization of General Reserve.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		239.200	239.200	239.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6250.626	5074.703	4369.707
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6489.826	5313.903	4608.907
LOAN FUNDS
1] Secured Loans		3404.226	2588.239	3937.521
2] Unsecured Loans		266.507	513.959	472.917
TOTAL BORROWING		3670.733	3102.198	4410.438
DEFERRED TAX LIABILITIES		697.878	666.569	608.904
TOTAL		10858.437	9082.670	9628.249
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5695.913	5192.824	5277.987
Capital work-in-progress		148.516	37.207	229.415
INVESTMENT		419.961	384.302	313.385
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3288.808	2533.718	2485.514
	Sundry Debtors	4104.133	3018.608	2314.147
	Cash & Bank Balances	7.683	2.721	13.329
	Other Current Assets	0.000	23.000	0.000
	Loans & Advances	1014.653	871.448	1012.700
Total Current Assets		8415.277	6449.495	5825.690
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3421.299	2726.874	1921.094
	Other Current Liabilities	66.326	59.034	24.372
	Provisions	333.605	195.250	72.762
Total Current Liabilities		3821.230	2981.158	2018.228
Net Current Assets		4594.047	3468.337	3807.462
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10858.437	9082.670	9628.249

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	26426.262	18996.981	15474.314
		Other Income	282.036	89.620	174.441
		TOTAL (A)	26708.298	19086.601	15648.755
Less	EXPENSES
		Raw Material Consumed	17195.242	12263.319	14340.533
		Manufacturing Service Cost	1801.928	1299.180
		Employee Related Cost	2189.666	1622.845
		Administrative and Other Expenses	2451.149	1662.564
		TOTAL (B)	23637.985	16847.908	14340.533
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3070.313	2238.693	1308.222
Less	FINANCIAL EXPENSES (D)		248.498	267.377	539.331
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2821.815	1971.316	768.891
Less/ Add	DEPRECIATION/ AMORTISATION (F)		620.728	553.479	552.337
	PROFIT BEFORE TAX (E-F) (G)		2201.087	1417.837	216.554
Less	TAX (H)		496.309	377.665	48.563
	PROFIT AFTER TAX (G-H) (I)		1704.778	1040.172	167.991
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		354.296	379.300	334.071
Less	APPROPRIATIONS		1528.855	1065.176	122.762
	BALANCE CARRIED TO THE B/S		530.219	354.296	379.300
	EARNINGS IN FOREIGN CURRENCY		4646.840	2397.404	3115.115
	IMPORTS
		Raw Materials	NA	665.311	981.527
		Stores & Spares	NA	1576.939	1774.060
		Capital Goods	NA	35.591	166.487
	TOTAL IMPORTS		NA	2277.841	2922.074
	Earnings Per Share (Rs.)		713.00	435.00	70.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.38	5.45	1.07
Net Profit Margin (PBT/Sales)	(%)	8.33	7.52	1.40
Return on Total Assets (PBT/Total Assets}	(%)	15.60	12.18	1.95
Return on Investment (ROI) (PBT/Networth)		0.34	0.27	0.05
Debt Equity Ratio (Total Debt/Networth)		0.57	0.58	0.96
Current Ratio (Current Asset/Current Liability)		2.20	2.16	2.89

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	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	No
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	Yes
34]	External Agency Rating, if available	Yes

BUSINESS REVIEW AND OPERATING PERFORMANCE

The high growth rate of the Indian Economy contributed to the improved overall performance in the domestic automotive industry. Aided by a rebound in agricultural output and increased levels of activity in the services and industrial sectors, the Indian GDP grew by 8.6% during the fiscal year 2010-11. However, escalating oil and commodity prices, currency uncertainties in developed countries, domestic inflationary pressures leading to successive hikes in policy interest rates are expected to dampen the growth near term.

Production of Passenger Vehicles in India grew by 27% to just below the 3 million mark during 2010-11. Output of Medium and Heavy Commercial vehicles increased by 38%, with production of multi-axle vehicles growing significantly Sustained demand for the Small-Commercial vehicles, whose payload is less than 3.5 tonnes, enabled the Light Commercial vehicle segment to grow by 29%. Tractor production also witnessed a growth rate of 26% with demand being sustained throughout the year.

Brake Division sale to OE customers grew by 39%. There has been a steady and strong order inflow from the replacement market for the company’s products, including fluids and sale to this segment increased by 20%. Sundaram Polymers, a small unit of the Company, specializing in engineering compounded polymers’ and related moulded parts has been consistently profitable. Exports of Brake Division also increased by 55%, mainly on account of the revival in the European market Total Brake Division Sales increased by 37%

Foundry Division’s overall external sale also increased by 56% driven by rise in Export business by 66% over the prior year The Foundry Division has been operating at near peak capacity for most part of the year.

Total export sales of the Company grew by 62% and contributed to 18% of the total sales.

In general, there has been supply demand mismatch in the wake of higher than expected growth. Spurt in commodity prices and other conversion costs in the supply chain impacted the operating profitability of the Company to a certain extent. Power availability in Tamilnadu continued to be a serious issue, especially for the Foundry Division and the Company has taken various steps to overcome this problem, including entering into long term tie-ups for sourcing power from independent power producers, albeit at a higher cost. The Company was also faced with the shortage in availability of skilled manpower during the year as also with rising payroll costs. In spite of these constraints the Company was able to meet the demands of it’s customers successfully due to the various pro-active steps taken as well as the focus given to improve productivity and be customer centric. The exchange risks were also effectively managed through a well defined risk mitigation policy.

The performance of the company for the ensuing year 2011-12 is to be viewed in the context of current economic uncertainties. High interest rates and rise in fuel cost are seen to dampen Vehicle demand during the short run. Though the long term outlook for the automotive industry still remains positive, growth prospects for the current year will be more moderate compared to the previous year. The recent Tsunami in Japan had also posed temporary set backs for some Vehicle manufacturers in India. Notwithstanding the present business climate, the Company expects to post a reasonable growth during the year 2011-12 due to diversified product mix.

RESEARCH AND DEVELOPMENT

In-house Research and Development continues to be a prime thrust area in the Company’s business strategy. During the year, the facilities in engineering, development and testing both at the Padi site and Polambakkam site, were upgraded with the purchase of several test rigs, data logging equipment, advanced software for analyzing brake performance / noise analysis, ABS Performance Testing and various other equipment including a scanning electron microscope. The in-house test track facilities at Polambakkam were fully utilized to aid the development and testing of various products during the year. Substantial investments are planned to further enhance the capability of the research and development activities in the ensuing years also.

SUBSIDIARIES

The Dunes Oman LLC (FZC)

Dunes Oman LLC, in which the Company holds 51.31% of the shareholding, recorded a sale of Rs.1176.939 million (RO 1,00,92,950) and achieved a Profit of Rs.110.745 million (RO 9,49,706). During its second year of full operations the company achieved a capacity utilization of more than 90%. Towards the expansion in the capacity of this foundry, the Company subscribed to additional right shares during the year amounting to Rs.45.224 million (RO 3,84,975). The expansion has been completed during May 2011.

CERTIFICATIONS, RECOGNITIONS AND AWARDS

All the main manufacturing sites continue to be certified for Quality Systems under ISO/TS 16949:2009, for Environmental management Systems under ISO 14001:2004 and for Occupational Health Safety Management System under OHSAS 18001:2007. In addition, Foundry Division is certified under BS EN: 16001:2009 for Energy Management System.

During the year, the Polambakkam Site was awarded the TPM ‘Special Award’ by JIPM.

The Company continues to strive and work towards enhancing customer satisfaction on all fronts and this has been recognized by several customers, both domestic and abroad, by way of awards. Some such awards bestowed on the Company’s Brake Division include ‘Business Partner of The Year 2010 Award’ by Mahindra Farm Equipment Sector, ‘Incoming Quality Improvement’ award for 2010-11 by Maruti Suzuki, award for achievement of ‘Zero ppm’ from Toyota Kirloskar Motors, ‘Best in Class Supplier– SQMI Category’ award from Ashok Leyland, ‘Best Delivery Performance for 2009-10’ award from HV Axles Limited, ‘Excellence in Quality’ award from Tata Motors Limited ‘Trucknology Supplier 2010 Award’ recognizing the quality, delivery and business support from MAN Truck and Bus, Germany. Foundry Division won awards from Volvo Powertrain, Sweden, towards recognition of Best in Performance, Continuous Improvement and Innovation , ‘Gold award for supplier of the year 2010’ from TKML, ‘Quality Performance’ award from Godrej Appliances.

UNSECURED LOAN:

Particulars	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks unsecured	0.000	200.000
Fixed deposits unsecured	261.878	307.797
Other debt unsecured	4.629	6.162
Total	266.507	513.959

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for	418.892	81.635
Claims against the Company not acknowledged as debts	190.325	67.499
Guarantees issued by Banks	56.258	60.524
Bills discounted with Banks	1075.028	1103.828

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U35999TN1962PLC004928
Name of the company	BRAKES INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 21, Patulas, Roadmadras - 600002, Tamilnadu, India bi_secretarial@brakesindia.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90297299
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank Of India, Cag Branch, 3rd Floor,Sigappi Achi Building, Rukmini Lakshmipathy Road, Chennai - 600008, Tamil Nadu, India ramesh.subramaniam@sbi.co.in
Nature of instrument creating charge	Joint Deed of Hypothecation dated 28th November 2012 executed between Company and the Consortium Bankers. Copy of Deed of Hypothecation dt.28-11-2012 is attached.
Date of instrument Creating the charge	28.11.2012
Amount secured by the charge	Rs.4700.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC rate - SBI - Base Rate + 1.50 p.a. present effective rate 11.25% p.a. with monthly rests State Bank's Base Rate is 9.75%. Terms of Repayment Repayable on Demand Margin 25% on stock 40% on Book Debts Extent and Operation of the charge Extent : Existing limit of Rs.4500.000 Millions has been enhanced to Rs.4700.000 Millions. Pari passu First charge on Raw Materials/Work in progress/Finished goods, book debts and other current assets. Others Nil
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu charge on current assets of the Borrower viz. stocks of Raw Materials, Semi -finished/Finished goods, book debts etc. fully described in Joint Deed of Hypothecation dt.28-11-2012.
Date of instrument modifying the charge	21.09.2011
Particulars of the present modification	1)The aggregate limit of the Fund based and Non-Fund based working capital facilities has been revised from the existing amount of Rs.4500.000 Millions to 4700.000 Millions. The revised share of each bank in the consortium arrangements is given in the attachment. (Refer Attachment No.2) 2) Induction of DBS Bank into the Consortium Arrangement in the place of Royal Bank of Scotland, N.V. by way of substitution.

FIXED ASSETS:

• Land Freehold
• Land Leasehold
• Building
• Plant and Machinery
• Computer Software
• Furniture and Fixture
• Vehicles  

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.54.06
UK Pound	1	Rs.82.15
Euro	1	Rs.70.61

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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.