MIRA INFORM REPORT

Report Date :

06.08.2014

IDENTIFICATION DETAILS

Name :	GREAVES COTTON LIMITED
Registered Office :	Industry Manor, Off Appa Sahab Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.03.1922
Com. Reg. No.:	11-000987
Capital Investment / Paid-up Capital :	Rs.488.400 Millions
CIN No.: [Company Identification No.]	L99999MH1922PLC000987
TAN No.: [Tax Deduction & Collection Account No.]	MUMG07833A
PAN No.: [Permanent Account No.]	AAACG2062M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing of engines and construction equipment and trading of power tillers, motor graders etc.
No. of Employees :	2307 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an old and established company having good track record. Fundamentals of the company is decent. Financial position of the company is strong and healthy. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for business dealing 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.

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long term issues rating: “AA”
Rating Explanation	High degree of safety and very low credit risk.
Date	19.02.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED

Management Non Co-Operative (91-22-24397575)

LOCATIONS

Registered Office/ Corporate Office :	Industry Manor, Off Appa Sahab Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-24397575 / 24365510
Fax No.:	91-22-24377730 / 24379555
E-Mail :	rahul.rao@greavescotton.com jyoti.kabra@greavescotton.com investorservices@greavescotton.com
Website :	http://www.greavescotton.com
Diesel Engine Unit- I:	Bombay Poona Road, Chinchwad, Pune – 411 019, Maharashtra, India
Light Engines Unit –I:	J-2, MIDC Industrial Area, Chikalthana, Aurangabad – 431 210, Maharashtra, India
Light Engines Unit –II:	Plot No.72, Sipcot Industrial, Complex, Ranipet - 632 403, Tamilnadu, India
Light Engines Unit –IV:	J-2A, MIDC Industrial Area, Chikalthana, Aurangabad – 431 210, Maharashtra, India
Light Engine Unit –V:	A-1/3, Shendra Five Star, Industrial Area, Shendra, Aurangabad – 431 001, Maharashtra, India
Genset Unit:	Gat No.357/17/1, 357/16/2 and 357/16/3, Kharabwadi, Chakan District, Khed, Pune, Maharashtra, India
Petrol Engines Unit:	F62 and 63, SIPCOT Industrial Complex, Gummidipoondi, Chennai - 601 201, Tamilnadu, India
Heavy Engineering Unit I and II:	D-18, SIPCOT Industrial Complex, Gummidipoondi, Chennai - 601 201, Tamilnadu, India
Heavy Engineering Unit IV:	A-12 (A), SIPCOT Industrial Complex, Gummidipoondi, Chennai - 601 201, Tamilnadu, India

DIRECTORS

As on: 31.03.2014

Name :	Mr. Karan Thapar
Designation :	Chairman
Name :	Mr. Sunil Pahilajani
Designation :	Managing Director and Chief Executive Officer
Name :	Mr. Vijay Rai
Designation :	Director
Date of Birth/Age :	13.10.1946
Qualification :	B. Tech in Mechanical Engineering from IIT Kharagpur
Date of Appointment	21.03.2002
Name :	Mr. Vikram Tandon
Designation :	Director
Date of Birth/Age :	18.11.1948
Qualification :	B. Tech (Hons) from IIT Delhi
Date of Appointment	07.08.2007
Name :	Dr. Clive Hickman
Designation :	Director
Date of Birth/Age :	19.11.1954
Qualification :	B.Sc., MBA, PhD, DSc, Fellow Member of Institute of Mechanical Engineers, UK
Date of Appointment	01.03.2012
Name :	Mr. Navneet Singh
Designation :	Director
Date of Birth/Age :	02.09.1950
Qualification :	FCA (England and Wales); ACA (India); BA Honours (Economics)
Date of Appointment	01.08.2013
Name :	Mr. Arvind Kumar Singhal
Designation :	Director
Date of Birth/Age :	10.08.1958
Qualification :	B. E (Elec. and Comm.) from IIT, Roorkee; MBA (Fin. and Mkt.) from UCLA (USA)
Date of Appointment	01.11.2013
Name :	Mr. Suresh N. Talwar
Designation :	Director

KEY EXECUTIVES

Name :	Mrs. Monica Chopra
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1000	0.00
Bodies Corporate	125852726	51.54
Sub Total	125853726	51.54
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	125853726	51.54
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	52738403	21.60
Financial Institutions / Banks	51783	0.02
Insurance Companies	26570053	10.88
Foreign Institutional Investors	9657541	3.95
Sub Total	89017780	36.45
(2) Non-Institutions
Bodies Corporate	7435499	3.04
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	17531116	7.18
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2712190	1.11
Any Others (Specify)	1656484	0.68
Overseas Corporate Bodies	775000	0.32
Non Resident Indians	821614	0.34
Trusts	41220	0.02
Directors & their Relatives & Friends	18650	0.01
Sub Total	29335289	12.01
Total Public shareholding (B)	118353069	48.46
Total (A)+(B)	244206795	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	244206795	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	DBH International Private Limited	98469662	40.32
2	Bharat Starch Products Limited	13775865	5.64
3	Karun Carpets Private Limited	13607199	5.57
4	Karan Thapar	1000	0.00
	Total	125853726	51.54

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Reliance Capital Trustee Company Limited. A/c. Reliance Growth Fund	12991705	5.32
2	IDFC Premium Equity Fund	11200000	4.59
3	Life Insurance Corporation of India	8623742	3.53
4	The New India Assurance Company Limited.	8027305	3.29
5	General Insurance Corp. of India	6300000	2.58
6	Reliance Capital Trustee Company Limited. A/c. Reliance Long Term Equity Fund	4935810	2.02
7	Franklin Templeton Mutual Fund A/c Franklin India Prime Fund	3409231	1.40
8	Franklin Templeton Mutual Fund A/c Franklin India Prime Fund	3350000	1.37
9	The Oriental Insurance Company Limited.	2806417	1.15
10	Franklin Templeton Mutual Fund A/c. Franklin India Flexi Cap Fund	2502049	1.02
	Total	64146259	26.27

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Reliance Capital Trustee Company Limited. A/c. Reliance Growth Fund	12991705	5.32
	Total	12991705	5.32

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of engines and construction equipment and trading of power tillers, motor graders etc.

GENERAL INFORMATION

No. of Employees :

2307 (Approximately)

Bankers :

· State Bank of India

· Bank of India

· ICICI Bank Limited

· HDFC Bank Limited

· Royal Bank of Scotland N.V.

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWINGS
Cash Credit / Short Term Finance from Banks *	0.000	22.000
Total	0.000	22.000

Notes: * Cash Credit and Short Term Finance from Banks were secured by hypothecation of all stock-in-trade, spares, tools and book debts, present and future, of the Company. The charges on these assets also extend to letters of credit and bank guarantees upto Rs. 253.600 Millions (Previous Year Rs. 448.700 Millions) and Rs. 55.200 Millions (Previous Year Rs. 50.400 Millions) respectively.

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Cost Auditors:
Name:	Dhananjay V. Joshi and Associates Chartered Accountants
Internal Auditors:
Name:	Aneja Associates Chartered Accountants
Wholly Owned Subsidiary of Greaves Leasing Finance Limited :	Dee Greaves Limited
Wholly Owned Subsidiary :	· Greaves Auto Limited · Greaves Cotton Netherlands B.V. (Upto 19-12-2013) · Greaves Leasing Finance Limited
Subsidiary of Greaves Leasing Finance Limited :	Greaves Cotton Middle East FZC (Formerly Ascot International FZC)
Wholly Owned Subsidiary of Greaves Cotton Netherlands B.V :	Greaves Farymann Diesel GmbH (Upto 10-10-2013)
Associate Company :	· Bharat Starch Products Limited · DBH Consulting Limited · DBH Global Holdings Limited · DBH International Private Limited · DBH Investments Private Limited · DBH Stephan Limited · English Indian Clays Limited · Karun Carpets Private Limited · Pembril Industrial and Engineering Company Private Limited · Premium Stephan BV., Netherlands · Premium Transmission Cooperatie UA · Premium Transmission Limited

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.2/- each	Rs.500.000 Millions
2500000	Redeemable Preference Shares	Rs.100/- each	Rs.250.000 Millions
	Total		Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
244206795	Equity Shares	Rs.2/- each	Rs.488.400 Millions

Shares in the Company held by each shareholder holding more than 5% shares

Name of the shareholder	As at 31.03.2014
	Number of shares	Percentage of shares held (%)
DBH International Private Limited	98537502	40.35
Reliance Capital Trustee Company Limited	13741705	5.63
Bharat Starch Products Limited	13775865	5.64
Karun Carpets Private Limited	13607199	5.57

Terms / Rights attached to equity shares

(i) The Company has only one class of equity shares having a face value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. Any fresh issue of equity shares shall rank pari-passu with the existing shares.

(ii) In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, if any, in proportion to the number of equity shares held by the shareholders.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	488.400	488.400	488.400
(b) Reserves & Surplus	7691.300	6932.000	6005.300
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	8179.700	7420.400	6493.700
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.400	1.700
(b) Deferred tax liabilities (Net)	333.600	347.200	299.600
(c) Other long term liabilities	39.500	37.800	30.500
(d) long-term provisions	126.000	131.700	104.800
Total Non-current Liabilities (3)	499.100	517.100	436.600
(4) Current Liabilities
(a) Short term borrowings	0.000	22.000	200.000
(b) Trade payables	1864.400	2329.200	1931.600
(c) Other current liabilities	660.700	626.200	809.700
(d) Short-term provisions	796.800	883.400	1058.500
Total Current Liabilities (4)	3321.900	3860.800	3999.800
TOTAL	12000.700	11798.300	10930.100
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3494.200	3602.900	3209.400
(ii) Intangible Assets	186.800	77.500	50.100
(iii) Capital work-in-progress	51.000	53.300	167.800
(iv) Intangible assets under development	2.300	26.900	35.600
(b) Non-current Investments	237.200	253.500	528.800
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	267.000	211.500	231.500
(e) Other Non-current assets	16.800	14.100	13.700
Total Non-Current Assets	4255.300	4239.700	4236.900
(2) Current assets
(a) Current investments	1543.400	685.400	585.400
(b) Inventories	1581.000	1609.900	1699.700
(c) Trade receivables	3330.300	3746.500	2572.900
(d) Cash and cash equivalents	339.900	413.500	702.500
(e) Short-term loans and advances	933.800	1101.000	1127.800
(f) Other current assets	17.000	2.300	4.900
Total Current Assets	7745.400	7558.600	6693.200
TOTAL	12000.700	11798.300	10930.100

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	17189.100	18732.900	17534.400
	Other Income	268.100	155.500	59.800
	TOTAL (A)	17457.200	18888.400	17594.200
Less	EXPENSES
	Cost of Materials Consumed	11273.900	12608.000	12008.700
	Purchases of Stock-in-Trade	561.500	389.100	469.800
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(25.000)	131.800	(151.700)
	Employees benefits expense	1619.200	1479.200	1275.100
	Other expenses	1823.900	1701.900	1567.300
	Exceptional Items	79.900	176.100	(432.900)
	TOTAL (B)	15333.400	16486.100	14736.300
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2123.800	2402.300	2857.900
Less	FINANCIAL EXPENSES (D)	46.400	11.200	34.800
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	2077.400	2391.100	2823.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)	434.700	389.600	317.300
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1642.700	2001.500	2505.800
Less	TAX (H)	511.800	621.900	650.900
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	1130.900	1379.600	1854.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	3602.200	2924.800	1940.900
Less	APPROPRIATIONS
	Transfer to General Reserve	250.000	250.000	250.000
	Dividend	370.900	452.200	621.000
	BALANCE CARRIED TO THE B/S	4112.200	3602.200	2924.800
	EARNINGS IN FOREIGN CURRENCY
	Export of goods on F.O.B. basis (including foreign branch)	698.500	596.900	522.500
	Direct Sales Compensation (including foreign branch)	0.000	0.000	4.300
	TOTAL EARNINGS	698.500	596.900	526.800
	IMPORTS
	Raw Materials	542.500	435.800	520.000
	Components and Stores parts	411.500	312.600	361.200
	Capital Goods	32.800	89.300	143.700
	TOTAL IMPORTS	986.800	837.700	1024.900
	Earnings / (Loss) Per Share (Rs.)	4.63	5.65	7.60

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	6.48	7.30	10.54
Net Profit Margin (PBT/Sales)	(%)	9.56	10.68	14.29
Return on Total Assets (PBT/Total Assets}	(%)	14.03	17.46	24.57
Return on Investment (ROI) (PBT/Networth)		0.20	0.27	0.39
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.03
Current Ratio (Current Asset/Current Liability)		2.33	1.96	1.67

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	488.400	488.400	488.400
Reserves & Surplus	6005.300	6932.000	7691.300
Net worth	6493.700	7420.400	8179.700
long-term borrowings	1.700	0.400	0.000
Short term borrowings	200.000	22.000	0.000
Total borrowings	201.700	22.400	0.000
Debt/Equity ratio	0.031	0.003	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	17534.400	18732.900	17189.100
		6.835	(8.241)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	17534.400	18732.900	17189.100
Profit	1854.900	1379.600	1130.900
	10.58%	7.36%	6.58%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM BORROWINGS:

Particulars	31.03.2014 (Rs. in millions)	31.03.2013 (Rs. in millions)	31.03.2012 (Rs. in millions)
Current Maturities of Long Term Borrowings	0.400	1.300	2.000
Total	0.400	1.300	2.000

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

CASE DETAILS

Lodging No.:-

ITXAL/2050/2009

Filing Date:-

20/08/2009

Reg. No.:-

ITXA/4224/2009

Reg. Date:-

18/12/2009

Petitioner:-	THE COMMISSIONER OF INCOME TAX 6 MUMBAI	Respondent:-	GREAVES COTTON LIMITED
Petn.Adv.:-	SURESH KUMAR (0)
District:-	MUMBAI

Bench:-	DIVISION
Status:-	Admitted(Unready)	Category:-	TAX APPEALS
Last Date:-	26/07/2011	Stage:-	FOR ADMISSION - AFTER NOTICE (HIGH ON BOARD)
Last Coram:-	HON'BLE SHRI JUSTICE J.P. DEVADHAR HON'BLE SHRI JUSTICE A.A. SAYED

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
Interest-free Sales Tax Loan and Special Incentive Loan	0.000	0.400
Total	0.000	0.400

Notes:

Unsecured Borrowings	Terms of Repayment
Interest-free Sales Tax Loan, Maharashtra - Deferment of five years sales tax liability from May 1995 to May 2000	Repayable after ten years in five yearly installments, starting from 2009-10 with last installment in May 2014

GENERAL INFORMATION:

Subject is engaged in manufacturing of engines and construction equipment and trading of power tillers, motor graders etc. The Company has manufacturing facilities in the states of Maharashtra and Tamilnadu. The products are mainly sold in India with some export to Middle East, Africa and South East Asia Region. The Company has one direct and two indirect subsidiaries having operations in India and Sharjah.

REVIEW OF OPERATIONS:

The financial year 2013-14 witnessed a sharp macro-economic downturn. It was characterised by slowing demand, high costs of borrowings and stalling of infrastructure projects. The bleak performance of the manufacturing and industrial sectors severely impacted the industries dependant on domestic demand. The environment resulted in de-growth across all the major product categories that the Company caters to i.e. three Wheeler / four Wheeler Small Commercial Vehicles, Pump sets, Gensets and Construction Equipment.

The Company registered a net revenue from operations of Rs.17457.200 Millions in the financial year 2013-14 as against Rs.1,8888.400 Millions in the financial year 2012-13, recording a decline of about 7.57%. The profit after tax recorded a 18.03% decline from Rs.1379.600 Millions in the financial year 2012-13 to Rs.1130.900 Millions in the financial year 2013-14.

Despite the performance being adversely affected by the grim situation for the capital goods industry, particularly so for the automotive segments, the Company was able to retain its market share across all its segments.

The Company’s sustained efforts towards back-end cost control, new product launches and efficiency improvement measures, supported the insulation and limited the impact on the profitability margins. The net profit margin (excluding exceptional items) for the financial year 2013-14 was lower at 7.04% as against 8.3% in the financial year 2012-13.

Their multi-dimensional growth strategy will help us develop superior products, deepen markets and widen geographies. The Company’s ability to better utilise capacities and product range will help derive better margins out of the businesses. The outlook of each business has been discussed in detail in the ‘Management Discussion and Analysis’ which forms a part of this Annual Report.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

World economic growth improved in the latter half of FY13 with much of the growth impetus flowing from the advanced economies. In contrast, many emerging market economies faced unfavourable external financial environment, even as they dealt with their domestic challenges. The positivity in US, UK and Germany could strengthen growth prospects, however, the downside risks from low inflation and the possibility of protracted low growth, especially in the other non-core EU nations and Japan, dominate the overall world outlook. Growth in emerging market economies is expected to be modest. Overall, world economic growth is projected to be slightly higher in 2014 at around 3.6%, rising to 3.9% in 2015.

INDIAN ECONOMY

India continued to experience slowdown in economic growth, and year-on-year growth in the Gross Domestic Product (GDP) declined to the sub 5% level. Agriculture and services sector performance provided the much-needed succour, as industrial growth languished and largely remained flat with very few new projects being announced. Low policy visibility, weak growth and high inflation, a large fiscal deficit and high interest rate, delay in infrastructure projects due to environment and land clearance challenges combined to create enormous impediments to growth. The efforts of the Reserve Bank of India (RBI) to stem price increases curbed spending and consumption weakened.

The year also saw a steep depreciation of the Rupee. The Government had to take measures to curb fiscal deficit and reduce the subsidies in food and fuel to avert the downgrading by credit rating agencies. Volatile capital inflows and the declining confidence of international investors due to the inflation, added to India’s economic woes.

India's growth is expected to recover in the financial year 2014-15, supported by slightly stronger external growth, improving export competitiveness and implementation of recently approved investment projects. Consumer price inflation, which climbed down from its peak during the third quarter of the financial year 2013-14, is expected to remain an important challenge, but should continue to move onto a downward trajectory. The stable Government at the Centre, post the general elections, could be a potential game changer as concrete steps are expected to be taken to restore the much-needed confidence in the people and corporates at large.

Company Overview

The challenging macro environment and near stagnation of demand adversely impacted the Company’s core businesses and the lacklustre performance of the Automotive, Genset and the Construction Equipment segments led to a decline in revenues.

The Company launched new products, acquired new customers and opened up new geographies, which helped the Company to compensate the weak macro environment in India. In addition, the Company also strengthened its service network across all product segments. However, these efforts did not create the desired results as the demand in the key segments it operates, remained subdued.

For the full year, the Company registered net sales of Rs.171.900 Millions as against Rs.187.300 Millions during the previous year. Net profit for the year was at Rs.1130.000 Millions as against Rs.1380.000 Millions, a decline of 18%. A cost optimisation project called “Propel” was initiated to launch specific initiatives like value engineering, supply chain, vendor development which enabled the Company to report reduction in the material cost. The employee costs during the financial year 2013-14 increased over last year predominantly because of inflation and the investment made in enhancing the R and D skills and new geography expansions.

The Company continued to expand its global footprint and set up an office in Tanzania and took focussed strategic and marketing initiatives to further build the market in UAE, East Africa and South East Asia.

ENGINE SEGMENT

AUTOMOTIVE ENGINES BUSINESS

Industry Overview

The Indian Automotive industry went through another year of dismal growth. Passenger car volumes declined by almost 5% during the year. The growth of diesel cars, which had been extremely robust in the past few years, also saw a major decline as the price gap between diesel and petrol was reduced substantially. The Medium and Heavy Commercial Vehicles (MandHCV) segment too went through another year of shrinking sales recording a drop of over 21% over last year. Only the 2-wheeler segment recorded a 7% growth during the year.

The 3-wheeler segment saw domestic volumes shrink by over 10%, mostly in passenger carriers. However, a stronger than expected demand from Africa enabled the industry to chalk up substantial growth in 3-wheeler exports, mainly in petrol driven vehicles. The resultant overall decline in numbers was just over 1%. The Light Commercial Vehicles (LCV) segment suffered the most, with both, domestic sales and exports, showing a drop in sales. Small Commercial Vehicles (SCV), which form a part of this segment, suffered a large drop in sales as well, after recording impressive growth over the last two years. On the whole, the LCV segment declined by over 13%.

The demand in the financial year 2014-15 is likely to remain sluggish for the LCVs, SCVs and 3-wheelers. The underlying growth factors such as fuel prices, interest rates and freight realisations, all remain in the negative territory. Most of the buyers of 3-wheelers and SCVs are small first time buyers, looking to start their own small business. With uncertainty looming over demand and profitability, many of the potential buyers of these vehicles are postponing their purchase, waiting for the growth factors to change for the better. This pent-up demand is likely to surface when the economy revives.

Business Overview

The Company’s Automotive Engines Business has a wide range of single cylinder diesel engines, which cater mainly to the 3-wheeler and SCV segments.

Volumes witnessed a sharp decline due to the economic slowdown and challenging industry environment. As both 3-wheeler and 4-wheeler engines volumes declined, the business registered a slight drop in quantities over last year.

On the positive side, the Company was awarded the prestigious Excellence in Delivery award for the second year running by Tata Motors. The Ace Zip and Magic Iris vehicles of Tata Motors are powered by the engines produced by the Company. The award is a recognition of the Company’s manufacturing prowess and excellence in delivery and adhering to stringent timelines.

The Company also entered into an agreement to supply diesel engines to TVS Motors for their diesel 3-wheeler vehicles.

New emission norms for vehicles are likely to be introduced in the near future. Sustained RandD efforts have led to the successful achievement of BS IV emission norms.

Outlook

The Automotive market is not expected to improve in the next few quarters. The diesel rate increase, high interest rates, poor growth in demand for last mile transportation due to slowdown in the economy, have resulted in inadequate growth in fares and freight rates for 3-wheeler and SCV operators. The Company is developing new market segments including non-automotive applications, and expanding its market into new geographies. The development of BS IV diesel single cylinder engines and of BS IV CNG engines is expected to provide a positive thrust. To broaden the product portfolio, the Company has also commenced on the development of larger diesel engines, however, these engines have a long development cycle.

AUXILIARY POWER BUSINESS

Industry Overview

During the year, the economic slowdown, high interest rates, challenging business environment and weak consumer sentiments impacted growth. Diesel Gensets clocked negative growth to the tune of 20% in the financial year 2013-14 due to the slowing demand and the overall sluggish economy which impacted the growth of the realty, manufacturing and service sectors. In addition, competition remained intense as competitors adopted price competition to better utilise their plant capacity.

Business Overview

With a huge power deficit in India, the Company has developed auxiliary power solutions which are fuel-efficient, rugged and versatile and cater to retail, commercial and residential complexes, hotels, hospitals, industries and manufacturing enterprises, defense and railways. The Company’s well established pan-India distributor and dealer network, complemented by the deep-rooted aftermarket support, lends itself to easy accessibility for customer engagement.

The Company’s endeavour in the challenging environment has been to strengthen its product offerings and roll out new products that are best suited to perform under demanding power conditions. The focus has been to develop products which are technologically advanced with functional superiority, fuel efficiency, have advanced ergonomic designs and, importantly, are the ideal choice for value-conscious consumers. In line with this strategy, the Company launched three new offerings in the sub 20 KVA. Its, 160-250 KVA and higher end 500 KVA range gensets and engines are designed to deliver uninterrupted auxiliary power under challenging conditions.

The Company also initiated and succeeded in optimising costs through several innovations, quality improvements and performance improvements. The Company also undertook measures to make deeper inroads into the institutional segment and ventured back into the Railways business.

Another important development has been the ability to meet the Central Pollution Control Board (CPCB) norms for the Company’s Genset range.

Outlook

The Company is poised to gain from opportunities emerging post the announcement of new CPCB Genset norms. With its existing wide range of product offerings and new product, the Company is confident that the solutions will make the Company a preferred choice amongst consumers seeking technology-led affordable solutions.

FARM EQUIPMENT BUSINESS

Industry Overview

Various pro-agriculture policies and beneficial interventions have supported the development of the agricultural sector and also boosted demand for the farm equipment business. India’s GDP growth for financial year 2013-14 was favourably supported by the sustained growth of agriculture sector due to a good monsoon. There is a marked shift in the preference for reliable local products which is backed by better local service over the low cost imports. The trend is expected to augur well for the Company as it has commenced localising many of the farm equipment through in-house R and D and also strengthening its own servicing network.

The draft farm mechanisation policy which reiterates the need for large scale farm mechanisation among small and marginal farmers, will play an important role in shaping the opportunity horizon.

Business Overview

The Company’s Farm Equipment Business manufactures a wide range of contemporary agricultural equipment which enables small and marginal farmers improve the productivity of their farms and reduce their dependence on manual labour.

Despite the good monsoon, the rural market continued to indicate signs of slowing down and specifically for the Company’s products due to the delay in release of subsidies and fuel increase, which play an important role in the purchase decision.

The Light Agri Equipment segment, including the oil engine pumpsets, continued to witness weak demand and volumes dropped. Though the Company’s entry into the electrical pumpset segment was well received.

The Company remained focussed on expanding the product range of Light Agri Equipment to reduce dependency on imports. Looking at the long-term opportunity potential in the business, the Company has set up a Technology Centre for the Farm Equipment Business at Gummidipoondi, Chennai, to facilitate the faster development of the farm equipment product portfolio.

Outlook

The level of mechanisation is expected to grow significantly among small and marginal farmers due to acute shortage of farm labour, fast changing economic situation in rural segment and increasing government support which enables subsidised purchasing.

Modernisation has reduced the amount of cultivable land and thus mechanisation, which improves productivity, will continue to generate demand for farm equipment. Continued support to the agricultural sector and favourable lending polices taking into account the thrust on inclusive growth, is anticipated and overall future long-term growth potential remains strong.

The Company remains focussed on developing practical value-added, energy efficient products to enhance farm productivity and ensuring excellence in servicing through a robust network.

The outlook for the financial year 2014-15 could remain an area of concern with the prediction of below normal monsoon which could dampen the demand for all agriculture aggregates including farm input and farm machinery. Majority of the Indian farm land still remains rain fed, with expected below normal monsoon could well end up with lesser sowing area thereby affecting the demand for farm inputs.

INDUSTRIAL ENGINES BUSINESS

Industry Overview

From concreting and road making to earth moving, mining, agriculture, marine, fire fighting and other pumps, compressors and also in railways, defence and power generation, industrial engines find application across diverse areas. Such engines are used in different stationary and mobile equipment. The depressing economic environment prevailing during the financial year 2013-14 impacted growth across all these areas, causing slowdown in demand and impeding growth of this business segment. Business was further impacted by the high interest rates and delays in project clearance, as a result of which the Company did not report any significant developments in the Industrial Engines Business.

Business Overview

In an effort to address the need for industrial engines across all critical areas, including construction, mining, agriculture, marine, rail cars, power, fire control and material handling, the Company builds customised products to match diverse needs. In line with the overall negative industry trend, the business remained sluggish during the year.

Outlook

Resurgence in demand is interlinked with the revival of the economy. Going forward, the Company is optimistic about increasing its market share in this business through focussed marketing initiatives and the RandD thrust.

INFRASTRUCTURE EQUIPMENT SEGMENT

CONSTRUCTION EQUIPMENT BUSINESS

Industry Overview

Development of adequate infrastructure has been identified as the most critical prerequisite growth enabler for the country. The development and progress of the economy and infrastructure sector is intrinsically linked to the growth and development of the construction equipment business.

The Road Construction segment has been on a recessionary trend since the financial year 2011-12 and the negative trend continued during the year.

Business Overview

Roads and concreting segments reported general decline as a result of the bleak economic sentiment, leading to a commensurate decline and degrowth in the Company’s business.

The period of the slowdown was utilised to expand the product basket through value-additions and technological improvements. The Company successfully launched water cooled engines for Soil Compactors which offers a distinct fuel consumption advantage.

Continuing with the strategy to introduce value-added products, the Company signed a MoU with Nikko, a leading Japanese Hot Mix Asphalt plant manufacturer, for trading.

CONCRETING EQUIPMENT BUSINESS

Industry Overview

The concrete equipment industry especially the Transit Mixer business continued to register a deep decline during the financial year 2013-14. Surplus equipment in the market which was redeployed in the new projects impacted the demand for new batching plants and concrete pumps. The sector’s turnaround hinges on the revival of the economy and a strong positive policy thrust to attract investments back to infrastructure projects and promote active growth in national highway construction.

Business Overview

The Company manufactures Compaction Equipment (Soil Compactors/Heavy and Light Tandem Rollers) and the entire value chain of concreting equipment including various configurations of Batching Plants, Concrete Pumps, Boom Pumps and Transit Mixers. The business is supported by the strong nation-wide distribution and service network.

The Company’s sales were affected by the overall dismal business environment. In spite of the prevailing market conditions, while the turnaround is not visible in the near future, the Company remains hopeful of growth in the long term. And in line with the long-term business opportunity, the Company introduced new products in the concreting business. The financial year 2013-14 saw the Company commercially launch the full range of S-Valve pumps and also subsequently launch the first indigenously manufactured 37 meter Z fold Boom Pump. Despite the product launches, weak operating environment led to year-on-year decline in sales.

Outlook

The outlook for India's infrastructure sector for the financial year 2014-15 remains negative, due to weak credit profiles for most project companies. No sharp movement is foreseen in the fortunes of the sector, especially in the short term. Favourable policy support and growth-oriented approach from the new Government will play an important role in shaping the fortunes of the beleaguered sector. In the long run, the Company believes that infrastructure sector holds opportunities and with its wide range of offerings, it is poised to ride the demand wave when the opportunity unfolds.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80022519	03/06/2005 *	2,932,100,000.00	SYNDICATE BANK	SIR P M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001,  INDIA	-
2	80022517	30/01/2014 *	2,750,000,000.00	State Bank of India	INDUSTRIAL FINANCE BRANCH, THE ARCADE, 2ND FLOOR,  WORLD TRADE CENTRE, CUFFE PARADE, COLABA, MUMBAI,  MAHARASHTRA - 400005, INDIA	B96372560

* Date of charge modification

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Leasehold Land

· Freehold Building

· Leasehold Building

· Plant and Equipment

· Office Equipments

· Furniture and Fixtures

· Vehicles

Intangible Assets

· Technical Know-how

· Computer Software

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2014

(Rs. In Millions)

Sr. No.	Particulars	Quarter ended
		30.06.2014 (Unaudited)
	Gross Sales	4605.700
	Less: Excise Duty	388.200
1	Income from Operations
	a) Net Sales	4217.500
	b) Other Operating Income	7.800
	Total Income from Operations (net)	4225.300
2	Expenses
	a) Cost of Materials Consumed	2610.500
	b) Purchase of Stock-in-Trade	137.500
	c) Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	136.700
	d) Employee Benefits Expense	434.900
	e) Depreciation	108.600
	f) Other expenses	437.500
	Total Expenses	3865.700
3	Profit from Operations before Other Income, Finance Costs & Exceptional Items (1-2)	359.600
4	Other Income	44.400
5	Profit from ordinary activities before finance costs & Exceptional Items (3+4)	404.000
6	Finance Costs	2.300
7	Profit from ordinary activities after finance costs but before Exceptional Items (5-6)	401.700
8	Exceptional Items (Refer Note 1)	(6.300)
9	Profit from Ordinary Activities before Tax (7+8)	395.400
10	Tax Expense
	a) Current Tax	113.500
	b) Tax adjustment in respect of earlier years	-
	c) Deferred Tax	(5.500)
11	Net Profit from Ordinary Activities after Tax (9-10)	287.400
12	Extraordinary Item (net of tax expense)	-
13	Net Profit for the period (11-12)	287.400
14	Paid-up equity share capital (face value of Rs. 2/- each)	488.400
15	Reserves excluding revaluation reserves
16	Earning Per Share (Not Annualised) (Rs.)
	- Basic	1.18
	- Diluted	1.18
A	Particulars of Shareholding
1	Public Shareholding
	- Number of Shares	118353069
	- Percentage of Shareholding	48.46
2	Promoter and Promoter Group Shareholding a) Pledged / Encumbered - Number of Shares - Percentage of Shares b) Non-encumbered	-
	- Number of Shares	125853726
	- Percentage of Shares ( as a % of the total shareholding of Promoter and Promoter Group)	100.00
	- Percentage of Shares ( as a % of the total share capital of the Company)	51.54
B	Investor Complaints Pending at the beginning of the quarter Received during the quarter Disposed off during the quarter Remaining unresolved at the end of the quarter	NIL NIL NIL NIL

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH JUNE 2014

Particulars	Quarter ended
	30.06.2014 (Unaudited)
1. Segment Revenue
a. Engines	3922.300
b. Infrastructure Equipment	266.700
c. Other	36.300
Total	4225.300
Less: Inter – segment revenue	-
Net Sales/Income from operations	4225.300
2. Segment Results
Profit/ (loss) before tax and interest
a. Engines	629.700
b. Infrastructure Equipment	(117.400)
c. Other	1.300
Total	513.600
Less: Unallocable Expenditure
Interest and Finance charges	2.300
Other expenditure (net of other income)	109.600
Exceptional Items	6.300
Profit Before Tax	395.400
3. Capital Employed
(Segment Assets – Segment Liabilities)
a. Engines	4526.400
b. Infrastructure Equipment	1124.600
c. Other	47.800
Total Capital Employed in segment	5698.800
Add: Unallocable Corporate Assets Including Investments net of Liabilities	2768.200
Total Capital Employed in the Company	8467.000

Notes:

1. Exceptional items constitute:

(RS. In Millions)

	Quarter ended
	30.06.2014
a) Profit on sale of Properties	-
b) Impairment of Assets	-
c) Provision for diminution in value of investment / write off on liquidation of companies	-
d) Employee separation cost	(6.300)
Total	(6.300)

2. Figures for the previous periods have been regrouped/reclassified, wherever necessary, to make them comparable with the figures of the current period.

3. The figures for the quarter ended 31st March 2014, being balancing figures between audited figures arrived at based on audited results of the full financial year and the published year to date unaudited figures for nine months ended 31st December 2013, have been considered as audited.

4. The above financial results were reviewed by the Audit Committee on 30th July 2014 and then approved by the Board of Directors on 31st July 2014.

PRESS RELEASE

GREAVES COTTON TURNOVER UP DESPITE WEAK MARKET MUMBAI

July 31, 2014

Greaves Cotton Limited, one of India’s leading engineering companies, has reported revenue of Rs. 4230.000 Millions for the quarter ended June 30, 2014 as against Rs 4120.000 Millions for the quarter ended June 2013. However, the Profit After Tax (PAT) has dropped marginally from Rs. 320.000 Millions to Rs. 290.000 Millions.

While the market continued to be subdued in the first quarter, some early signs of revival are being seen in the automotive segment. This positive sentiment is expected to drive faster growth towards the second half of the financial year.

Commenting on the results, Mr. Sunil Pahilajani, MD and CEO said "Our first quarter revenue growth reflects positive sentiment on market revival. In addition, the initiatives taken by the company for material cost improvement are also providing steady benefits."

The company saw improved performance in the 3 Wheeler segment. Genset segment transitioned to the new CPCB2 emission regime from July’14 and the company is expected to improve market positioning with the launch of its new efficient and cost competitive genset range.

Overall, our Engines Segment which is the dominant part of the company grew by 5% and its segment result increased by 9%. However, Infrastructure Equipment segment continued to suffer due to further decline in the industry.

As part of its endeavour to continuously improve customer engagement, the company also launched an IVR based toll free number offering customer support across all business areas during the first quarter.

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.60.87
UK Pound	1	Rs.102.67
Euro	1	Rs.81.70

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		62

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.