MIRA INFORM REPORT

Report Date :

12.03.2013

IDENTIFICATION DETAILS

Name :	MRF LIMITED
Registered Office :	New No. 114, (Old No. 124), Greams Road, Chennai – 600006, Tamilnadu
Country :	India
Financials (as on) :	30.09.2012
Date of Incorporation :	05.11.1960
Com. Reg. No.:	18-004306
Capital Investment / Paid-up Capital :	Rs.42.400 Millions
CIN No.: [Company Identification No.]	L25111TN1960PLC004306
TAN No.: [Tax Deduction & Collection Account No.]	CHEM07088E CHEM06754G CHEM04457F
PAN No.: [Permanent Account No.]	AAACM4154G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt.
No. of Employees :	15494 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (83)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 110000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. The company has a brand image in the mind of consumer. It is one of the leading brand company in the tyre sector. There appears slight dip in the profitability of the company during current year. However financial position of the company appears to be sound. Fundamentals of the company are strong and healthy. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

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	ICRA
Rating	AA+ (Non Convertible Debentures)
Rating Explanation	High credit quality it carry low credit risk.
Date	June 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 :	New No. 114, (Old no. 124) Greames Road, Chennai – 600 006, Tamilnadu, India
Tel. No.:	91-44-28292777
Fax No.:	91-44-28295087/ 28294089 28291844/ 0562
E-Mail :	mrfmktg@vsnl.com mrfexpo@vsnl.com mrfmalt@md2.vsnl.net.in mrfshare@md3.vsnl.net.in mrfshare@mrfmail.com mrfexpo@mrfmail.com
Website :	www.mrftyres.com
Factory 1:	Tiruvottiyur, Chennai, Tamilnadu, India
Factory 2:	Vadavathoor, Kottayam Kerala, India
Factory 3:	Usgao, Ponda, Goa, India
Factory 4:	Icchiputhur, Arakonam, Tamilnadu, India
Factory 5:	Eripakkam Village, Nettapakkam Commune, Pondicherry, India
Factory 6:	Sadasivapet, Medak, Andhra Pradesh, India
Factory 7:	Naranamangalam Village and Post, Kunnam Taluk, Perambalur District, (Near Trichy) Tamilnadu, India

DIRECTORS

As on: 30.09.2012

Name :	Mr. K. M. Mammen
Designation :	Chairman and Managing Director
Name :	Mr. Arun Mammen
Designation :	Managing Director
Name :	Mr. K. M. Philip
Designation :	Whole-time Director
Name :	Mr. Rahul Mammen Mappillai
Designation :	Whole-time Director
Name :	Dr. K. C. Mammen
Designation :	Director
Name :	Mr. Ashok Jacob
Designation :	Director
Name :	Mr. V. Sridhar
Designation :	Director
Name :	Mr. Vijay R. Kirloskar
Designation :	Director
Name :	Mr. N. Kumar
Designation :	Director
Name :	Mr. Ranjit I. Jesudasen
Designation :	Director
Name :	Mr. Sanjay Sharad Vaidya
Designation :	Director
Name :	Dr. Salim Joseph Thomas
Designation :	Additional Director
Name :	Jacob Kurian
Designation :	Director
Name :	M. Meyyappan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ravi Mannath
Designation :	Company Secretary
Name :	Mr. Kurian and Kurian
Designation :	Legal Advisors

SHAREHOLDING PATTERN

As on: 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	564916	13.32
Bodies Corporate	565691	13.34
Sub Total	1130607	26.66
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	21625	0.51
Sub Total	21625	0.51
Total shareholding of Promoter and Promoter Group (A)	1152232	27.17
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	274412	6.47
Financial Institutions / Banks	3812	0.09
Insurance Companies	165681	3.91
Foreign Institutional Investors	185320	4.37
Sub Total	629225	14.84
(2) Non-Institutions
Bodies Corporate	1098665	25.90
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	965376	22.76
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	395645	9.33
Sub Total	2459686	58.00
Total Public shareholding (B)	3088911	72.83
Total (A)+(B)	4241143	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)	4241143	0.00

BUSINESS DETAILS

Line of Business :

The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt.

Products :

Item Code No. (ITC Code)	40110000
Product Description	New Pneumatic Tyres of Rubber
Item Code No. (ITC Code)	40130000
Product Description	Inner Tubes of Rubber
Item Code No. (ITC Code)	40129049
Product Description	Tyre Flaps
Item Code No. (ITC Code)	40061000
Product Description	Camel Black Strips for Retreading Rubber

PRODUCTION STATUS (AS ON 30.09.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Automobile Tyres	Nos.	@	34300000	34771158
Automobile Tubes	Nos.	@	33100000	31381790
Tread Rubber	MT	7946	8943	1056
Pre-cured Treads	MT	@	24000	7683
Conveyor Belting	MT	@	3000	2042
Specialty Surface Coatings	KL	@	2000	1484**

@ Not Applicable, since delicensed.

+ On 3 shifts per day basis for 300 days per annum.

** Outsourced production.

Figures in brackets are in respect of previous year.

GENERAL INFORMATION

No. of Employees :

15494 (Approximately)

Bankers :

· State Bank of India, Madame Cama Road, Mumbai

· National Bank of Abu –Dhabi – Dubai

· Standard Chartered Bank – Dubai

· Bank for Foreign Trade of Vietnam

· Syndicate Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 30.09.2012	As on 30.09.2011
LONG-TERM BORROWINGS
Term Loans from Banks
External Commercial Borrowings (ECB)	2046.200	294.000
Debentures
2000 9.07% Secured Redeemable Non-Convertible Debentures of ` 10,00,000 each, privately placed	2000.000	2000.000
5000 10.09% Secured Redeemable Non-Convertible Debentures of ` 10,00,000 each, privately placed	5000.000	5000.000
SHORT-TERM BORROWINGS
Working Capital Facilities from Banks	5287.200	4100.700
Total	14333.400	11394.700

Banking Relations :	--
Auditors :
Name :	· Sastri and Shah Chartered Accountants Chennai, Tamilnadu, India · M. M. Nissim and Company Chartered Accountants Mumbai, Maharashtra, India
Subsidiaries :	· MRF Corporation Limited · MRF International Limited · MRF Lanka (Private) Limited

CAPITAL STRUCTURE

As on: 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 Millions
100000	Taxable, Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4241143	Equity Shares	Rs.10/- each	Rs.42.411 Millions

Rights, preferences and restrictions attached to shares:

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Shareholders holding more than 5 percent of the equity shares

Name of Shareholder	No. of Shares held
Comprehensive Investment and Finance Company Private Limited	422,069
MOWI Private Limited	507,984
Enam Shares and Securities Private Limited	266,713

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		42.400	42.400	42.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28535.600	22935.300	16864.400
4] (Accumulated Losses)		0.000	0.000	0.0000
NETWORTH		28578.000	22977.700	16906.800
LOAN FUNDS
1] Secured Loans		14333.400	11394.700	4879.600
2] Unsecured Loans		1980.900	2320.900	8201.200
TOTAL BORROWING		16314.300	13715.600	13080.800
DEFERRED TAX LIABILITIES		1867.200	1418.000	0.000
DEFFERED PAYMENT CREDIT		0.000	0.000	463.800
TOTAL		46759.500	38111.300	30451.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29138.000	19713.800	13289.100
Capital work-in-progress		4146.500	10422.500	4977.200
INVESTMENT		4247.100	726.900	726.900
DEFERREX TAX ASSETS		0.000	0.000	150.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16455.900	15260.200	11106.800
	Sundry Debtors	14540.900	13088.600	8114.900
	Cash & Bank Balances	611.000	559.800	451.800
	Other Current Assets	376.800	302.600	0.000
	Loans & Advances	2606.500	3284.600	1272.900
Total Current Assets		34591.100	32495.800	20946.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9394.300	10158.300	6633.300
	Other Current Liabilities	13623.600	13025.400	1293.400
	Provisions	2345.300	2064.000	1711.500
Total Current Liabilities		25363.200	25247.700	9638.200
Net Current Assets		9227.900	7248.100	11308.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		46759.500	38111.300	30451.400

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2012	30.09.2011	30.09.2010
	SALES
		Revenue from operations	118701.800	97431.700	74527.200
		Export Incentives	0.000	0.000	110.200
		Other Income	320.100	253.100	181.100
		TOTAL (A)	119021.900	97684.800	74818.500
Less	EXPENSES
		Cost of materials consumed	83442.700	73791.600	66233.400
		Purchase of Stock-in-Trade	264.800	330.200
		Changes in Inventories of Finished Goods, Stock-in-process & Stock-in-Trade	(178.300)	(3051.100)
		Employee benefits expense	5136.900	4467.500
		Other expenses	17425.700	13799.400
		Exceptional Item: Excess Depreciation reversal in respect of earlier year	0.000	(4042.300)
		TOTAL (B)	106091.800	85295.300	66233.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12930.100	12389.500	8585.100
Less	FINANCIAL EXPENSES (D)		1587.800	976.700	631.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11342.300	11412.800	7954.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3011.100	2476.300	2607.500
	PROFIT BEFORE TAX (E-F) (G)		8331.200	8936.500	5346.600
Less	TAX (H)		2607.600	2742.300	1806.800
	PROFIT AFTER TAX (G-H) (I)		5723.600	6194.200	3539.800
Less	APPROPRIATIONS
		Interim Dividend	NA	NA	25.400
		Final Proposed Dividend	NA	NA	80.600
		Special Proposed Dividend	NA	NA	106.000
		Tax Thereon	NA	NA	35.200
		Debenture Redemption Reserve	NA	NA	0.000
	BALANCE CARRIED TO THE B/S		NA	NA	3292.600
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	12805.500	8233.000	6692.700
		Others	12.800	3.800	4.100
	TOTAL EARNINGS		12818.300	8236.800	6696.800
	IMPORTS
		Raw Materials	31175.700	23076.600	18182.200
		Components & Spare Parts	412.400	381.700	146.100
		Capital Goods	1448.200	3390.100	1515.500
	TOTAL IMPORTS		33036.300	26848.400	19843.800
	Earnings Per Share (Rs.)		1349.52	1460.50	834.63

QUARTERLY RESULTS

PARTICULARS	31.12.2012
Net Sales	30257.500
Total Expenditure	26226.500
PBIDT (Excl OI)	4031.000
Other Income	29.300
Operating Profit	4060.300
Interest	498.500
Exceptional Items	0.000
PBDT	3561.800
Depreciation	891.900
Profit Before Tax	2669.900
Tax	867.700
Provisions and contingencies	0.000
Profit After Tax	1802.200
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	1802.200

KEY RATIOS

PARTICULARS		30.09.2012	30.09.2011	30.09.2010
PAT / Total Income	(%)	4.81	6.34	4.73
Net Profit Margin (PBT/Sales)	(%)	7.02	9.17	7.17
Return on Total Assets (PBT/Total Assets}	(%)	13.07	17.12	15.55
Return on Investment (ROI) (PBT/Networth)		0.29	0.39	0.32
Debt Equity Ratio (Total Debt/Networth)		0.57	0.60	0.77
Current Ratio (Current Asset/Current Liability)		1.36	1.29	2.17

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	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	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:

(Rs. In Millions)

Particulars	As on 30.09.2012	As on 30.09.2011
LONG-TERM BORROWINGS
Term Loan from a Bank
Buyers Line of Credit	833.800	833.800
Fixed Deposits	171.500	377.100
Sales Tax Deferral Scheme	705.100	770.000
Others
Deferred Payment Credit	270.500	340.000
Total	1980.900	2320.900

Financial Results

During the year, The Company’s turnover increased by around 23% to Rs.130540.300 Millions from Rs.106370.300 Millions in the previous

year. Across the board, there were positive increases in all segments with an 8% increase in total tyre production. Fluctuations in the raw material prices, increase in power and fuel cost and depreciation of rupee, have impacted the financial performance of the Company. Despite the above, The Company could achieve improved results, considering the challenging circumstances, due to better operating efficiencies and cost cutting measures which the Company has undertaken over a period of time.

During the year, The Company commenced production at its new plant at Tiruchirappalli in Tamil Nadu. This new modern plant along with their existing factories will help further consolidate their market leadership.

Two interim dividends of Rs. 3 each per share (30% each) for the year ended 30th September, 2012 were declared by the Board of Directors on 25-07-2012 and on 25-10-2012. The Board of Directors is now pleased to recommend a final dividend of Rs. 19 per share (190%) on the paid up equity share capital of the Company, for consideration and approval of the shareholders at the Annual General Meeting. With this, the total dividend for the entire year works out to Rs. 25 per share (250%). The total amount of dividends aggregates to Rs. 106.000 Millions.

After making provision for taxation, debenture redemption reserve and proposed dividend, an amount of Rs. 5312.300 Millions be transferred to General Reserve. With this, the Company’s Reserves and Surplus stands at Rs. 28535.600 Millions.

Prospects for the Current Year

While the demand outlook for tyres appear favourable with an 8 to 10% annual growth forecast, the pressure on margins will continue unless the cost issues are addressed. Most tyre companies are planning capacity expansions especially in the truck radial segment and this development will fuel competition in this segment and the tyre industry in general. The growth of the tyre industry will also depend upon the expansions in the automobile industry and the efforts made by the government to improve the road infrastructure. Also, the government should study the inverted tax issue and take corrective action by providing a level playing field in

the tyre industry.

The Company hopes to record satisfactory results on account of MRF’s high brand preference and trust reposed by customers in MRF products.

Awards received during the year

During the year, MRF was awarded the “Top Export Award [Auto Tyre Sector]” by the All India Rubber Industries Association (AIRIA) yet another time during the period.

MANAGEMENT DISCUSSION AND ANALYSIS

(Within the limits set by the Company’s competitive position) The core business of MRF is manufacturing, distribution and sale of tyres for various kinds of vehicles. The management discussion and analysis given below discusses the key issues for various sectors of the business.

Tyre Industry Structure and Development

The turnover of the Indian tyre industry is valued at Rs. 410000.000 Millions in the period 2011-2012. Exports accounted for Rs.42000.000 Millions. 1254 lakh tyres were produced by the tyre companies. Seven top companies produce 80% of the total production.

Truck and bus tyres constitute 55% of the tyre industry turnover. Around 57% of the turnover is sold in the replacement market which is competitive but margins are better. The OE segment (30% of the turnover) cannot be ignored as volumes are high but margins are less as prices are dependent more on the manufacturers of vehicles. In the passenger car group, 47 % of tyres are sold to OEMs and 49% in the replacement segment.

The tyre industry is raw material intensive and predominantly cross-ply or bias-ply tyres are manufactured. The truck, bus and LCV segments continue to be cross-ply based due to poor road conditions, low OE fitment and high initial cost. Passenger tyres are currently 98% radial tyres. Radialisation in the light commercial vehicle group is 22% and in heavy vehicles (truck and bus) the level is 17%. Radialisation in commercial vehicles is expected to grow by 3% to 4% during 2012-13.

During 2011-12, in the vehicle manufacturing sector, there has been a decrease of 3% in the production of heavy commercial vehicles and a 30% increase in light commercial vehicles. There was an 8% increase in the small commercial vehicle segment. In the passenger car group, production has remained flat whereas in the utility group, there has been an increase of 39% over the last year. In two wheelers, scooters witnessed a 25% increase whilst in the motorcycle segment production increased by 5%. In the farm segment there was a 2% increase in production over 2010-11.

The tyre industry provides direct and indirect employment to one million people including dealers, retreaders and truck operators. The truck operations are controlled by 2.6 million small operators.

There are around 5000 tyre dealers spread throughout the country. Most of them sell multiple tyre brands.

Segment wise and Product wise Performance

During the period 2011-12, MRF achieved a turnover of Rs. 130540.300 Millions. This is an increase of around 23 % over the previous year. Across the board, there were positive increases in all segments with an 8% increase

in total tyre production. In the heavy commercial vehicle group, the largest segment, the increase was 7% over the last year. In the motorcycle and scooter segments, the increases over the previous year were 9% and 26% respectively. The passenger car group registered an increase of 7%. In the farm group, production increased in the tractor front group by 6% and by 18% in the tractor rear categories.

Exports

Facing global recession and a challenging and competitive year, MRF posted a growth of 56% over the previous year 2010-11. In the year gone by, continued volatility in raw material prices and increased input costs definitely affected margins. MRF’s strong distributor network worldwide and brand presence in key markets contributed to a 23% growth in the heavy commercial vehicle segment.

Outlook

While the demand outlook for tyres appear favourable with an 8 to10% annual growth forecast, the pressure on margins will continue unless the cost issues are addressed. Most tyre companies are planning capacity expansions especially in the truck radial segment and this development will fuel competition in this segment, and the tyre industry in general. The growth of the tyre industry will also depend upon the expansions in the automobile industry and the efforts made by the Government to improve the road infrastructure. Also, the Government should study the inverted tax issue and take corrective action by providing a level playing field for the tyre industry.

Performance of the Company

The sales turnover of the Company during the year increased by around 23% from Rs. 106370.300 Millions in 2010-11 to Rs.130540.300 Millions in 2011-12. Earnings before depreciation and interest (EBIDTA) amounted to Rs. 12930.100 Millions against Rs. 8347.200 Millions in the previous year. After providing for depreciation and interest, the profit before tax for the year ended 30th September 2012 was Rs. 8331.200 Millions as compared to Rs. 4894.200 Millions in the previous year. During the previous year 2010-11, there was an exceptional credit of Rs. 4042.300 Millions representing reversal of excess depreciation of earlier years, due to change in method of depreciation from Written Down Value (WDV) to Straight Line Method (SLM). After making provision for income tax, the net profit for the year stood at Rs. 5723.600 Millions as compared to Rs. 6194.200 Millions in the previous year.

Contingent Liabilities not provided for: (As on 30.09.2012)

(i) Guarantees given by the Banks – Rs.271.300 Millions (Previous Year – Rs. 207.300 Millions).

(ii) Letters of Credit issued by the Banks – Rs. 1831.400 Millions (Previous Year – Rs. 2260.200 Millions).

(iii) Customs Duty on import of equipments and spare parts under EPCG Scheme – Rs. 946.200 Millions (Previous Year – Rs. 836.600 Millions).

(iv) Bills discounted with a bank - Rs 58.900 Millions (Previous Year - ` Nil).

(v) Claims not acknowledged as debts:

(a) Disputed Sales Tax demands pending before the Appellate Authorities – Rs. 17.300 Millions (Previous Year – Rs. 30.700 Millions).

(b) Disputed Excise/Customs Duty demands pending before the Appellate Authorities/High Court – Rs. 786.500 Millions (Previous Year – Rs. 804.300 Millions).

(c) Disputed Income Tax Demands – Rs.488.700 Millions (Previous Year – Rs. 375.200 Millions). Against the said demand the Company has deposited an amount of Rs. 459.300 Millions.

(d) Contested ESI Demands pending before High Court - Nil (Previous Year – Rs. 0.600 Millions).

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012_

(Rs. In Millions)

	PARTICULARS	31.12.2012
		Unaudited
	PART I
1	Income from Operations
	(a) Gross Sales/Income from Operations	33591.900
	Less:Excise duty	3357.200
	Net Sales/Income form Operations	30234.700
	(b) Other Operating Income	22.800
	Total income from operations ( net)	30257.500
2	Expenses
	a) Cost of materials consumed	20185.200
	b) Purchases of stock-in-trade	53.800
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(2.300)
	d) Employee benefits expense	1344.200
	e) Depreciation and amortisation expense	891.900
	f) Other Expenses	4645.600
	Total Expenses	27118.400
3	Profit from Operations before Other Income, finance costs and exceptional items (1-2)	3139.100
4	Other Income	29.300
5	Profit from Ordinary activities before finance costs and exceptional items (3+/ (-) 4)	3168.400
6	Finance costs	498.500
7	Profit from Ordinary activities after finance costs but before exceptional items (5+/(-)6)	2669.900
8	Exceptional Items	-
9	Profit from Ordinary activities before tax ( 7 +/(-)8)	2669.900
10	Tax Expense	867.700
11	Net Profit from ordinary activities after tax ( 9-10)	1802.200
12	Extraordinary items	-
13	Net Profit for the period ( 11 +/(-) 12)	1802.200
14	Paid-up Equity Share Capital (Face value of Rs.10/- each)	42.400
15	Paid-up Debt Capital of the Company *	7000.000
16	Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	-
17	Debenture Redemption Reserve(Cumulative)	539.200
18	Earnings Per Share (Face value Rs.10/- each)
	Basic and diluted EPS (Rs. Per Share)	424.94

SELECT INFORMATION FOR THE QUARTER ENDED 31ST DECEMBER, 2012

PARTICULARS	31.12.2012
	(Unaudited)
PART 2
A PARTICULARS OF SHAREHOLDING
1 Public Shareholding - No of Shares	3088911
'% of Shareholding	72.83%
2 Promoters and promoter group Shareholding
a) Pledged/Encumbered
- No. of Shares	13550
- (As a % of the total shareholding of promoter and promoter group)	1.18%
- (As a % of the total share capital of the Company)	0.32%
b) Non-encumbered
- No. of Shares	1138682
- (As a % of the total shareholding of promoter and promoter group)	98.82%
- (As a % of the total share capital of the Company)	26.85%

	Particulars	Quarter ended 31.12.2012
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Remaining unresolved at the end of the quarter	Nil

Notes:

1) The above unaudited standalone results have been subjected to Limited Review by the Statutory Auditors, reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 07th Feb,2013.

2) Provision for Taxation has been made in respect of Income presently determined, subject to appropriate revision/adjustment on final determination of Income for the relevant Previous Year as per Income Tax Act, 1961.

3) The Company is dealing mainly in rubber products and has no other reportable segment.

4) Figures have been regrouped wherever necessary.

* Paid up Debt Capital represents Secured Redeemable Non-Convertible Debentures.

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Moulds

· Furniture and Fixtures

· Computer

· Office Equipment

· Vehicles

AS PER WEBSITE DETAILS:

PRESS RELEASE:

TYRE STOCKS UP ON CCI CLEAN CHIT

The Competition Commission of India (CCI) has given a clean chit to tyre manufacturers over allegations of cartelization due to lack of evidence, reports CNBC-TV18.

Also read - CCI finds no cartelisation among tyre manufacturers

At 09:20 hrs Apollo Tyres  was quoting at Rs 87.60, up Rs 0.60, or 0.69%. It has touched an intraday high of Rs 88.40 and an intraday low of Rs 87.40. It was trading with volumes of 89,129 shares.

At 09:20 hrs JK Tyre and Industries  was quoting at Rs 128.60, up Rs 1.70, or 1.34%. It has touched an intraday high of Rs 130.15 and an intraday low of Rs 127.95. It was trading with volumes of 39,820 shares. 

At 09:20 hrs Ceat  was quoting at Rs 122.95, up Rs 1.20, or 0.99%. It has touched an intraday high of Rs 124.10 and an intraday low of Rs 122.60. It was trading with volumes of 29,847 shares.

At 09:20 hrs MRF  was quoting at Rs 10,177, up Rs 6.45, or 0.06%. It has touched an intraday high of Rs 10,235 and an intraday low of Rs 10,173. It was trading with volumes of 143 shares.

BUY MRF; TARGET RS 14,331: ANGEL BROKING

Angel Broking is bullish on MRF  and has recommended buy rating on the stock with a target price of Rs 14,331 in its March 04, 2013 research report.

"For 1QSY2013, MRF reported a muted 5.2% yoy revenue growth to Rs 3,026cr (Rs 2,875cr in 1QSY2012) on account of slowdown in auto industry. Declining rubber prices led to a 437bp yoy expansion of EBITDA margin to 13.3% from 9.0% in the same quarter last year. Consequently, the net profit for the quarter surged by 59.6% yoy to Rs 1800.000 Millions from Rs 1130.000 Millions in 1QSY2012.

Declining rubber prices to drive bottom-line: Rubber, a major raw material in the manufacture if tyres have been volatile since two years. Rubber prices have declined to level of Rs 157/kg currently due to declining demand owing to slowdown in auto industry; increased production during the last three months; and inventory pileup which resulted from huge imports in times of favorable international prices. Rubber prices are expected to remain relatively low for the next one or two quarters owing to bearish global scenario which would subsequently result in expansion of EBITDA margin and consequently improved net profit. They expect the EBITDA margin to remain relatively unchanged in SY2014E due to expected pass on of price correction in the OEM segment.

Outlook and valuation: They expect MRF to post a 7.7% revenue CAGR over SY2012-14 to Rs 137670.000 Millions, while EBITDA margin is expected to expand by 229bp in SY2013 due to decline in rubber prices. However, They expect margin to remain stable in SY2014 at 12.8%. Consequently, the net profit is expected to post a 15.2% CAGR over SY2012-14 to Rs 7600.000 Millions. At the current market price, MRF is trading at a PE of 6.5x its SY2014E earnings and at a P/BV of 1.1x for SY2014E. They maintain our Buy rating on the stock with a revised target price of Rs 143310.000 Millions, based on a target P/E of 8.0x for SY2014E earnings," says Angel Broking research report.

CCI FINDS NO CARTELISATION AMONG TYRE MANUFACTURERS

In a relief to tyre makers, the Competition Commission today said it has not found any evidence of cartelisation among the country's tyre manufacturers including Apollo, MRF  and Ceat  .

In its order, the Commission said there is "no sufficient evidence to hold a violation by the tyre companies Apollo, MRF,JK Tyre , Birla, Ceat and ATMA (Automotive Tyre Manufacturers Association)" of provisions of Competition Act.

Cartelisation generally refers to entities entering into agreements whereby they decide not to compete on price or product or customers. Such practices, which adversely impact overall competition in the market, are prohibited under Section 3 of the Competition Act.

The Commission in June 2010 had directed its Director General (DG) to carry out an investigation on the issue, specifically on the five major domestic tyre makers - Apollo Tyres, MRF, Ceat Tyre, Birla Tyre and JK Tyre.

The DG, investigation arm of the CCI, had concluded that tyre makers violated some provisions of the Competition Act. However, the fair trade regulator said that taking into consideration the act and conduct of the tyre companies/ ATMA, "it is safe to conclude that on a superficial basis the industry displays some characteristics of a cartel there has been no substantive evidence of the existence of a cartel".

According to the fair trade regulator, as a tradable, the industry has always been open to competitive threats from imports.

"The Commission holds that the available evidence does not give enough proof that tyre companies/ATMA acting together have limited and controlled the production and price of tyres in the market in India," the order said.

All India Tyre Dealers' Federation (AITDF) had filed a complaint against tyre makers alleging that they were indulging in anti-competitive activities.

COMPETITION COMMISSION RECTIFIES ERROR IN ORDER

Fair Trade Regulator CCI has rectified an error in its order issued in October that was related to tyre manufacturers in the country. In October 2012, the Competition Commission of India said that it has not found any evidence of cartelisation among the country's tyre manufacturers including Apollo ,MRF  and Ceat  .

However, that order was passed under Section 27 and under this clause, an order could only be passed if the companies are found abusing their dominant position in the market. Rectifying its error, CCI said the order passed on October 30, 2012, was the final order and not an order under section 27 of the Competition Act.

CCI has said the error has been rectified under Competition Act's Section 38(2)(b), which allows any of the regulator's order to be rectified to correct a mistake which is apparent from the record and which has been brought to its notice by any party to the order.

"It is clear from a plain reading of Section 27 that orders under Section 27 can only be passed where after inquiry, the Commission finds a contravention of Sections 3 or 4 of the Act. "Since in the present case, no contravention of either Sections 3 or 4 was found by  the Commission after inquiry, the order in question cannot be made under Section 27 of the Act," CCI said in an order dated January 16.

According to CCI, this is a fit case for rectification and that the title of the order be amended to 'Final Order' and not 'Order' under section 27 of the Competition Act, 2002". CCI also noted that for the removal of doubts, "it is hereby declared that the Commission shall not, while rectifying any mistake apparent from record, amend substantive part of its order passed under the provisions of this Act".

In the October order, CCI had said that there was no sufficient evidence to hold a violation by the tyre companies, Apollo, MRF, J K Tyre, Birla, Ceat and ATMA (Automotive Tyre Manufacturers Association) -- of Competition Act.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.81.09
Euro	1	Rs.70.61

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	10
--CREDIT LINES	1~10	9
--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
TOTAL

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.