MIRA INFORM REPORT

Report Date :

07.06.2013

IDENTIFICATION DETAILS

Name :	AUTOMOTIVE AXLES LIMITED
Registered Office :	Hootagalli Industrial Area, Off Hunsur Road, Mysore – 570018, Karnataka
Country :	India
Financials (as on) :	30.09.2012
Date of Incorporation :	21.04.1981
Com. Reg. No.:	004198
Capital Investment / Paid-up Capital :	Rs. 151.119 Millions
CIN No.: [Company Identification No.]	L51909KA1981PLC004198
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturing and Marketing of Axle Housing, Complete Axles, Gears and Brake Assemblies
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 10852000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. There appears slight dip in profitability during 2012. However, general financial position seems to be good. Performance capability is high. Trade relations are reported to be fair. Business is active payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan A+
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	August, 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	Hootagalli Industrial Area, Off Hunsur Road, Mysore – 570018, Karnataka, India
Tel. No.:	91-821-2402582-86/ 2402452-532
Fax No.:	Not Available
E-Mail :	info@autoaxle.com sec@autoaxle.com
Website :	www.autoaxle.com
Works :	Unit I: Hootagalli Industrial Area, Off Hunsur Road, Mysore – 570018, Karnataka, India
	Unit II: Plot No.34 and 35P, Hootagalli Industrial Area, Off Hunsur Road, Mysore – 570018, Karnataka, India
	Unit III: 6 Km Stone, Kichha Road, Village Shimla Pistor, Rudrapur, Udham Singh Nagar, Uttarakhand, India
	Unit IV: No.19, Udyog Vihar, Greater Noida, Uttar Pradesh, India

DIRECTORS

As on 31.09.2012

Name :	Mr. Babasaheb N. Kalyani
Designation :	Chairman
Name :	Mr. Pedro N Ferro,
Designation :	Director
Name :	Mr. Bhalchandra B. Hattarki
Designation :	Director
Name :	Mr. B.C. Prabhakar
Designation :	Director
Name :	Mr. Prakash C. Bhalerao
Designation :	Director
Name :	Mr. Satish Sekhri
Designation :	Director
Name :	Mr. Ashok Rao
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S Ramkumar
Designation :	Company Secretary, Compliance Officer and Chief Financial Officer
Registrar and Share Transfer Agents :	Integrated enterprises (I) Limited #30, Ramana Residency, 4th cross, Sampige Road, Malleshwaram Bangalore, India ph: 91-80-23460815-818 e-mail: alfint@vsnl.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	5367806	35.52
Sub Total	5367806	35.52
(2) Foreign
Bodies Corporate	5367275	35.52
Sub Total	5367275	35.52
Total shareholding of Promoter and Promoter Group (A)	10735081	71.04
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1442007	9.54
Financial Institutions/ Banks	25	0.00
Foreign Institutional Investors	24976	0.17
Sub Total	1467008	9.71
(2) Non-Institutions
Bodies Corporate	1616540	10.70
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	947757	6.27
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	305314	2.02
Any Others (Specify)	40275	0.27
Non Resident Indians	36221	0.24
Clearing Members	3854	0.03
Trusts	200	0.00
Sub Total	2909886	19.26
Total Public shareholding (B)	4376894	28.96
Total (A)+(B)	15111975	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0000	0.00
(1) Promoter and Promoter Group	0000	0.00
(2) Public	0000	0.00
Sub Total	0000	0.00
Total (A)+(B)+(C)	15111975	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Axle Housing, Complete Axles, Gears and Brake Assemblies

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited

· Kotak Mahindra Bank

· State Bank of Mysore

· IDBI Bank Limited

· State Bank of India

· Axis Bank Limited

· ICICI Bank

Facilities :

Secured Loan	30.09.2012 (Rs. In Millions)	30.09.2011 (Rs. In Millions)
Term loans From banks
HDFC Bank	88.421	25.000
Kotak Bank	80.000	120.000
AXIS Bank	84.524	0.000
Long term maturity of finance lease obligations	0.319	0.636
Working capital borrowings	191.815	339.346
(The above working capital borrowings are secured by first pari-passu charge on inventory, spares, packing material, receivables and the entire other current assets of the Company (both existing and future) and second pari-passu charge on entire gross block of fixed assets including capital work in progress of the Company.)
Total	445.079	484.982
NOTE : I. The loan is secured by first pari-passu charge on all existing and future fixed assets excluding the Land and existing Building (both movable and immovable) of the Borrower, to be shared with existing term lenders. Mortgage by way of first pari-passu charge on the immovable properties being building (funded out of term loan) to be situated at Hootagalli Industrial Area, Mysore. Repayable in equal quarterly installments along with interest ranging from 12.75% to 13.5%. II. The loan is secured by hypothecation of first pari-passu charge on all movable and immovable plant and machinery of the Company both present and future. Repayable in equal quarterly installments along with interest ranging from 11.5% to 12%. III. The loan is secured by hypothecation of first pari-passu charge on all movable and immovable assets of the wind mill project at Jadeshwar site in Rajkot District, Gujarat (excluding the land which is being leased by Govt. of Gujarat). The entire receivables of the project and escrow with axis bank designated account of the receivables from the sale of power generated. Repayable in equal quarterly installments starting from July 2013. Interest payable monthly ranging from 12.5% to 13% The finance lease is secured by first pari-passu charge on leased Vehicle. Repayable in equal monthly installments along with interest ranging from 13% to 14.60%. The unsecured finance lease is repayable in equal quarterly installments along with interest ranging from 10% to 12% The unsecured term loan repayable in equal quarterly installments along with interest at LIBOR + 0.65%.

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Chennai, Bangalore, India
Internal Auditors :
Name :	Price Water House Coopers Chartered Accountants
Address :	Bangalore, India
Entity having substantial Influence :	· Meritor Heavy Vehicle System LLC., USA · Meritor Inc.,
Other Related Parties with whom the Company had transactions :	· Bharat Forge Limited · Meritor HVS Cameri, SPA, Italy. · Meritor HVS (India) Limited · Meritor HVS, Florence · Meritor Automotive Inc, Fletcher USA · Meritor Automotive Inc, Ohio USA · Meritor HVS, Sweden · Meritor Automotive Export Limited, UK · Meritor Vehicle Systems (Wuxi) Co Limited, China · Meritor Heavy Vehicle, Australia · Meritor, Brazil · Meritor Inc., Maxton, USA · Meritor Automotive Export, South Wales NP · Ege Fren AS Turkey

CAPITAL STRUCTURE

As on 31.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
23000000	Equity Shares	Rs.10/- each	Rs. 230.000 Millions
2000000	Preference shares	Rs.10/- each	Rs. 20.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15111975	Equity Shares	Rs.10/- each	Rs. 151.119 Millions

Details of share holding more than 5% shares in the company

Name of the shareholder	No. of Shares	% of holding in the class
BF Investments Ltd.,	5367806	35.520
Meritor Heavy Vehicle Systems, LLC USA	5367275	35.517
Reliance Capital Trustee Company Ltd.,	1409793	9.329

Right, preferences and restrictions attached to shares

The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are entitled to receive only residual assets of the Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.09.2012	30.09.2011	30.09.2010
SHAREHOLDERS FUNDS
1] Share Capital		151.119	151.119	151.119
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2562.099	2287.550	1887.618
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2713.218	2438.669	2038.737
LOAN FUNDS
1] Secured Loans		445.079	484.982	633.122
2] Unsecured Loans		4.893	8.256	73.482
TOTAL BORROWING		449.972	493.238	706.604
DEFERRED TAX LIABILITIES		124.174	119.601	135.350
TOTAL		3287.364	3051.508	2880.691
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1755.186	1459.519	1328.158
Capital work-in-progress		190.526	40.254	78.982
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	940.111	1102.048	902.764
	Sundry Debtors	1591.532	1910.556	1237.474
	Cash & Bank Balances	23.501	111.067	89.716
	Other Current Assets	10.147	4.499	0.000
	Loans & Advances	431.688	278.745	114.843
Total Current Assets		2996.979	3406.915	2344.797
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1139.072	1400.549	592.820
	Other Current Liabilities	273.681	217.252	57.218
	Provisions	242.574	237.379	221.208
Total Current Liabilities		1655.327	1855.180	871.246
Net Current Assets		1341.652	1551.735	1473.551
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3287.364	3051.508	2880.691

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2012	30.09.2011	30.09.2010
	SALES
		Income	9406.498	10124.815	6679.950
		Other Income	20.204	5.210	40.322
		TOTAL (A)	9426.702	10130.025	6720.272
Less	EXPENSES
		Cost of materials consumed	6944.776	7346.189
		Changes in inventories of finished goods and work-in-progress	(223.454)	(53.263)
		Employee benefits expense	561.888	516.361
		Other expenses	1111.280	1149.704
		TOTAL (B)	8394.490	8958.991	5815.892
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1032.212	1171.034	904.380
Less	FINANCIAL EXPENSES (D)		92.578	65.756	35.552
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		939.634	1105.278	868.828
Less/ Add	DEPRECIATION/ AMORTISATION (F)		273.877	233.928	209.956
	PROFIT BEFORE TAX (E-F) (G)		665.757	871.350	658.872
Less	TAX (H)		215.573	295.783	218.128
	PROFIT AFTER TAX (G-H) (I)		450.184	575.567	440.744
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1795.461	1453.094	1205.665
Add	PROPOSED DIVIDEND AND DIVIDEND TAX WRITTEN BACK		0.000	0.000	0.570
Less	APPROPRIATIONS
		Transfer to General Reserve	45.100	57.560	44.100
		Dividend	151.120	151.120	128.451
		Tax on Dividend	24.520	24.520	21.334
	BALANCE CARRIED TO THE B/S		2024.905	1795.461	1453.094
	IMPORTS
		Raw Materials	48.437	63.741	61.508
		Consumable & Spares	6.069	9.717	1.990
		Capital Goods	209.046	42.368	1.710
	TOTAL IMPORTS		263.552	115.826	65.208
	Earnings Per Share (Rs.)		29.79	38.09	29.17

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter
Net Sales	1985.900	1632.600
Total Expenditure	1800.800	1513.000
PBIDT (Excl OI)	185.100	119.700
Other Income	1.700	2.700
Operating Profit	186.900	122.400
Interest	18.600	23.500
Exceptional Items	0.000	0.000
PBDT	168.300	98.900
Depreciation	77.500	66.300
Profit Before Tax	90.700	32.600
Tax	29.900	7.500
Provisions and contingencies	0.000	0.000
Profit After Tax	60.800	25.100
Extraordinary Items	0.000	0.000
Prior period expenses	0.000	0.000
Other adjustment	0.000	0.000
Net profit	60.800	25.100

KEY RATIOS

PARTICULARS		30.09.2012	30.09.2011	30.09.2010
PAT / Total Income	(%)	4.77	5.68	6.56
Net Profit Margin (PBT/Sales)	(%)	7.08	8.61	9.86
Return on Total Assets (PBT/Total Assets}	(%)	14.01	17.90	17.94
Return on Investment (ROI) (PBT/Networth)		0.24	0.36	0.32
Debt Equity Ratio (Total Debt /Networth)		0.16	0.20	0.35
Current Ratio (Current Asset/Current Liability)		1.81	1.84	2.69

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

UNSECURED LOAN:

Particulars	30.09.2012 (Rs. In Millions)	30.09.2011 (Rs. In Millions)
Term loans From banks	0.000	8.256
Long term maturity of finance lease obligations	4.893	0.000
Total	4.893	8.256

MANAGEMENT DISCUSSION AND ANALYSIS:

INDIAN ECONOMIC OVERVIEW:

The year (October 2011 – September 2012) began on a cautious note with GDP falling continuously since quarter ending September 2010. The GDP grew 6.1% in the first quarter and continued to perform discouragingly 5.3% in the second quarter and 5.5% in the third quarter in the succeeding quarters. Increasing fuel and food prices, coupled with economic uncertainty and sluggish exports, resulted in the lowest GDP growth witnessed in the Q2 (quarter ending March 2012). However, towards the end of the year, the growth story painted a slightly more reassuring picture with government focusing on reforms to regain investor confidence.

After decelerating for over four successive quarters from 9.2% y-o-y in Q4 of FY 2010-11 to 5.3% in Q4 of FY 2011-12, the fiscal year 2011-12 closed with a GDP of 6.5%, much lower than the preceding two years. However, GDP growth was marginally higher at 5.5% in Q1 of FY 2012-13. The slight improvement in GDP growth in Q1 of FY 2012-13 was primarily driven by growth in construction and supported by better than expected growth in agriculture.

While headline inflation related to the wholesale price index (WPI) hovered around 9.5% at the start of the year, it gradually came down in the succeeding months to 7% levels primarily due to the receding demand from consumers. Towards the end of the year, inflation rose to 7.8% (September 2012) due to strong consumer demand. Amid growing inflation, RBI has clearly stated that its efforts will be to rein in inflation and support growth.

Index of Industrial Production (IIP), an indicator of industrial growth, showed a meagre growth of 2.9% in year ended March 2012. While the power sector showed a strong growth of 8.9% (Y-o-Y), mining sector de-grew 2% as a consequence of mining ban imposed on several states in India. The manufacturing sector, which contributes 75.5% to the IIP index, saw a modest growth of 3%, largely due to sluggish economic growth. The CMIE (Centre for Monitoring Indian Economy) however has estimated that in FY 2012-13 (April- March) the industrial output grew at 5.1%, which is lower than the preceding 7-year average of 7.9%, but significantly higher than the growth witnessed in FY 2012-13.

The Indian currency weakened sharply during the year, touching levels of Rs. 57 against the US dollar and continues to be weak at Rs.53 levels during the end of the year. The rupee over the past year has been volatile. While weakening rupee helped the IT sector and exporters, it adversely impacted the trade deficit, which rose to US$ 189.7 Billion in the year ending March 2012, compared to the deficit of US$ 130.6 Billion in the corresponding period the year before. Rising crude oil prices, coupled with drying-up of FDI smothered the rupee against the dollar. However, the rupee is expected to strengthen following the government’s focus on reforms, breaking the prevailing culture of policy impasse and low investor confidence. Sluggish economic growth affected each and every industry and the Commercial Vehicle (CV) industry was no exception; it posted negative growth in the year.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Medium and Heavy Commercial Vehicles (M and HCV):

(GVW above 7.5T):

India stands as the fifth largest manufacturer of commercial vehicle globally. M and HCV saw a strong growth in the first half (October 2011 – March 2012) of the year and a sharp decline in second half (April – September 2012). While production in the first half grew 12.4% over the corresponding period in the previous year, second half de-grew 17.4%, making it an overall 2.4% de-growth. In Q2 (January – March 2012) 111,982 vehicles were produced, which was a historical high; 69,290 vehicles were produced in Q3 (April – June 2012) which was the lowest quarterly production since January 2010. Overall, 351,543 vehicles were produced during the year, which is 2.4% lower than 360,358 units during the previous year. M and HCV Domestic sales posted de-growth of 1% to reach 328,881 units, whereas exports declined 18% over the previous year to reach 24,508 units. While the haulage truck production slowed down in line with slowdown in the economy, tipper production dropped (-10%) much more than the market drop, due to mining ban in several states.

OUTLOOK:

The domestic auto component industry has experienced healthy growth, led by strong domestic demand. Both the auto and auto component market is expected to witness sizeable growth. The global auto-component market is expected to be worth US$ 2,243 Billion in 2020.

COMPANY OVERVIEW:

Automotive Axle Limited (AAL) is the largest independent manufacturer of Rear Drive Axle Assemblies in the country. The Company was incepted in 1981, as a joint venture of Kalyani Group and Meritor Inc., USA (formerly the automotive division of Rockwell International Corporation). It is equipped with highly specialized manufacturing processes, and has its facilities located at Mysore, Panthnagar and Noida.

OPPORTUNITIES:

The Company is already exploring opportunities in the CV market with its ‘Green Axle’ (2-Speed Axle) and the hub-reduction axle, which were launched in a phased manner in FY 2011 and FY 2012. The management’s focused effort to strengthen its presence in brakes, aftermarket and trailer business, the Company foresees significant business opportunities, going forward.

STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED

31^ST MARCH, 2013

(Rs. In Millions)

Particulars	3 Months ended	Previous 3 Months ended	Year to date Figure for Current Period Ended
	31.03.2013	31.12.2012	31.03.2012
	Unaudited	Unaudited	Unaudited
Income from operations
Net sales /income from operations (Net of excise duty)	1630.301	1984.546	3614.847
Other operating income	2.332	1.325	3.657
Total income from operations (net)	1632.633	1985.871	3618.504
Expenses
Cost of materials consumed	1112.202	1555.383	2667.585
Purchases of stock-in-trade	--	--	--
Changes in inventories of finished goods, work-in-progress and stock-in-trade	54.105	(164.208)	(110.103)
Employee benefits expenses	135.738	151740	287.478
Depreciation and amortisation expenses	66.249	77.528	143.777
Other expenses	210.903	257.845	468.748
Total Expenses	1579.197	1878.288	3457.485
Profit / (Loss) from operations before other income, finance costs and exceptional items (1 - 2)	53.436	107.583	161.019
Other income	2.727	1.735	4.462
Profit / (Loss) from ordinary activities before finance costs and exceptional Items (3 + 4)	56.163	109.318	165.481
Finance costs	23.530	18.592	42.122
Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5 - 6)	32.633	90.726	123.359
Exceptional Items	--	--	--
Profit / (Loss) from ordinary activities before Tax (7 - 8)	32.633	90.726	123.359
Tax expenses	7.489	29.920	37.409
Net Profit / (Loss) from ordinary activities	25.144	60.806	85.950
after tax (9 - 10)
Extraordinary items (net of tax expense Rs. )	--	--	--
Net Profit / (Loss) for the Period (11 - 12)	25.144	60.806	85.950
Paid – up equity share capital	151.120	151.120	151.120
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year	--	--	--
Earnings per share (before extraordinary
items) (of Rs. 10/- each) (not annualised):
Basic	1.66	4.02	5.69
Diluted	1.66	4.02	5.69
Earnings per share (after extraordinary
items) (of Rs. 10/- each) (not annualised):
Basic	1.66	4.02	5.69
Diluted	1.66	4.02	5.69
PART - II
PARTICULARS OF SHAREHOLDING
Public shareholding
- Number of shares	4376894	4376894	4376894
- Percentage of shareholding	28.96%	28.96%	28.96%
Promoters and Promoter Group Shareholding
Pledged / Encumbered	Nil	Nil	Nil
- Number of shares	N.A	N.A	N.A
- Percentage of shares (as a % of the total
shareholding of Promoter and Promoter Group)	N.A	N.A	N.A
- Percentage of shares (as a % of the total share capital of the company)	N.A	N.A	N.A

Non-encumbered
- Number of shares	10735081	10735081	10735081
- Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group)	100%	100%	100%
- Percentage of shares (as a % of the total share capital of the company)	71.04%	71.04%	71.04%

Particulars	3 Months Quarter ended
	31.03.2013
Pending at the beginning of the quarter	Nil
Received during the quarter	5
Disposed off during the quarter	5
Remaining unresolved at the end of the quarter	Nil

NOTE:

1. The above results were reviewed by the Audit Committee, approved by the Board of Directors of the Company at their meeting held on 2nd May, 2013.

2. The activities of the company are classified into a single segment of 'Automotive Components

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

Particulars	31.03.2013	30.09.2012
	Unaudited	Audited
EQUITY AND LIABILITIES
Shareholders' funds
Share capital	151.120	151.120
Reserves and surplus	2648.050	2562.100
Sub total Shareholders' funds	2799.170	2713.220
Non-current liabilities
Long-term borrowings	226.447	258.157
Deferred tax (net)	122.605	124.174
Long-term provisions	21.335	20.338
Sub total Non-current liabilities	370.387	402.669
Current liabilities
Short-term borrowings	749.437	191.815
Trade payables	848.293	1139.071
Other current liabilities	217.775	273.681
Short-term provisions	21.994	222.236
Sub total Current liabilities	1837.499	1826.803
Total Equity and Liabilities	5007.056	4942.692
ASSETS
Non-current assets
Fixed assets	1927.965	1945.712
Long-term loans and advances	82.260	115.894
Other non-current assets	5.640	5.413
Sub total Non-current assets	2015.865	2067.019
Current assets
Inventories	1061.331	940.111
Trade receivables	1621.717	1591.532
Cash and bank balances	33.819	23.502
Short-term loans and advances	270.356	315.794
Other current assets	3.968	4.734
Sub total current assets	2991.191	2875.673
Total Assets	5007.056	4942.692

Previous year / period's figures are re-grouped / re-stated wherever necessary to make them comparable with those of the current period.

FIXED ASSETS:

· Land – Freehold

· Land – Leasehold

· Building

· Furniture and Office Equipments

· 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 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.56.87
UK Pound	1	Rs.87.65
Euro	1	Rs.74.51

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.