MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	EMKAY AUTOMOBILE INDUSTRIES LIMITED (w.e.f. 03.07.2007)
Formerly Known As :	EMKAY AUTOMOBILE INDUSTRIES PRIVATE LIMITED
Registered Office :	D-180, Savitri Nagar, New Delhi – 110017
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.09.2000
Com. Reg. No.:	55-107525
Capital Investment / Paid-up Capital :	Rs.199.366 Millions
CIN No.: [Company Identification No.]	U34300DL2000PLC107525
PAN No.: [Permanent Account No.]	AAACE8876F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Coil Springs, Precision Sheet Metal and Tubular Components, Forgings, Tube Mill, Wire Drawing and Aluminum Pressure Die Casting.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1724000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company possesses a moderate financial profile marked by modest networth base, along with slow debtor realization and accrued payables leading to working capital intensive operations. Management has witnessed an acceptable sales volume whereas, has reported a modest profit margin which is further susceptible to slow down in the auto sector. The ratings also take into consideration, the minimal infusion of funds as capital from the promoters which further supports the liquidity position. However, trade relations are seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of experienced promoters and reputed client base, the company can be considered for business dealings with some caution.

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

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	India Rating and Research
Rating	Long term rating BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May 15, 2014

Rating Agency Name	India Rating and Research
Rating	Short term rating A3+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May 15, 2014

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 (91-11-64509900)

LOCATIONS

Registered Office :	D-180, Savitri Nagar, New Delhi – 110017, India
Tel. No. :	91-11-65409900
Fax No. :	Not Available
E-Mail :	swati@emkayauto.com corporate@emkayauto.com
Website :	http://www.emkayauto.com
Factory 1 :	39/7, K.M. Stone, N.H. 8, Delhi-Jaipur Highway, Village Begumpur, Khotolla, Gurgaon-122001, Haryana, India
Tel. No.:	91-124-2215522 / 26
Fax No.:	91-124-2215527
E-Mail :	gurugaon@emkayauto.com
Factory 2 :	E-40, Focal Point, Phase IV, Ludhianand-141010, Punjab, India
Tel. No.:	91-161-2671129 / 2676108 / 09 / 3098050
Fax No.:	91-161-2673083
E-Mail :	ludhiana@emkayauto.com
Factory 3 :	D-40, Ambad, MIDC, Nashik - 422010, Maharashtra, India
Tel. No.:	91-253-3093467
Fax No.:	91-253-2384442
E-Mail :	nashik@emkayauto.com
Factory 4 :	Plot No. 73 to 76, Industrial Area IIE, Sector-07l, Pant Nagar, Udham Singh Nagar, Uttarakhand, India
Tel. No.:	91-59-44250296
E-Mail :	pantnagar@emkayauto.com
Factory 5 :	E-203, Focal Point, Phase IV, Ludhiana - 141010, Punjab, India
Tel. No.:	91-161-2671129, 2676108 / 09, 3258041
Factory 6 :	Located at : Haridwar, Uttarakhand, India

DIRECTORS

As on 25.09.2013

Name :

Ms. Alka Shroff

Designation :

Additional director

Address :

2/15, Nehru Enclave, 1^st Floor, Kalkaji Extension, New Delhi-110019, India

Date of Birth/Age :

01.09.1959

Date of Appointment :

05.07.2007

DIN No. :

01763698

Name :

Mr. Ramesh Shroff

Designation :

Additional director

Address :

2/15 Nehru Enclave, 1^st Floor, Kalkaji Extension, New Delhi-110019, India

Date of Birth/Age :

12.02.1955

Date of Appointment :

05.07.2007

DIN No. :

01763950

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U34300DL2000PLC107525	EMKAY AUTOMOBILE INDUSTRIES LIMITED	Additional director	05/07/2007	05/07/2007	-	Active	NO
2	U45400WB2008PTC128862	SWARNARATNA INFRASTRUCTURE PRIVATE LIMITED	Director	27/08/2008	27/08/2008	-	Active	NO
3	U74900WB2013PTC190320	ASE CORP PRIVATE LIMITED	Director	14/02/2013	14/02/2013	-	Active	NO

Name :

Mr. Ashish Mullick

Designation :

Additional Director

Address :

A 36l, Chittranjana, Park, New Delhi-110019, India

Date of Birth/Age :

06.11.1977

Date of Appointment :

05.07.2007

DIN No. :

01965427

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U34300DL2000PLC107525	EMKAY AUTOMOBILE INDUSTRIES LIMITED	Additional director	05/07/2007	05/07/2007	-	Active	NO
2	U74999DL2013PTC252905	AT MARKET PRIVATE LIMITED	Director	28/05/2013	28/05/2013	-	Active	NO

Name :

Sadhucharan Datta

Designation :

Whole-time Director

Address :

354F, sector 39, Housing Board Colony, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

12.01.1963

Date of Appointment :

26.09.2011

PAN No.:

ADFPD5731P

DIN No. :

02571186

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74900DL2009PLC190759	JAJOO ENGINEERING LIMITED	Director	01/06/2009	01/06/2009	18/06/2014	Active	NO
2	U34300DL2000PLC107525	EMKAY AUTOMOBILE INDUSTRIES LIMITED	Whole-time director	26/09/2011	01/09/2011	-	Active	NO
3	U34100MP1986PTC003309	EMKAY AUTO (INDORE) PRIVATE LIMITED	Director	28/09/2013	03/10/2011	-	Active	NO

Name :

Brinda Jajoo

Designation :

Additional Director

Address :

W-10/14- Western Avenue, Sainik Farm, New Delhi-110062, India

Date of Birth/Age :

05.07.1983

Date of Appointment :

25.09.2013

DIN No. :

05321051

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U34100MP1986PTC003309	EMKAY AUTO (INDORE) PRIVATE LIMITED	Director	27/09/2012	07/07/2012	-	Active	NO
2	U34300DL2000PLC107525	EMKAY AUTOMOBILE INDUSTRIES LIMITED	Director	25/09/2013	28/11/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2013

Names of Shareholders	No. of Shares	%age
Brinda Jajoo	108160887	54.25
Sadhucharan Datta	1925	0.00
Ramesh Shroff	1750	0.00
Alka Shroff	1750	0.00
Emkay Portfolio India Private Limited, India	10341250	5.19
Sugandh Finvest Private Limited, India	12796875	6.42
K F L Finance and Securities Private Limited, India	61325500	30.76
Ratan Lal Leela Devijajoo Charitable Trust, India	686875	0.34
Jajoo Family Trust, india	4837500	2.43
Yieshu Marketing Private Limited, India	1125000	0.56
Emkay Infotech Limited, India	87000	0.04
Total	199366312	100.00

As on 25.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	42.97
Directors or relatives of Directors	54.26
Other top fifty shareholders	2.77
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Coil Springs, Precision Sheet Metal and Tubular Components, Forgings, Tube Mill, Wire Drawing and Aluminum Pressure Die Casting.

Products :

ITC Code No.	Products or Services
73201020	Springs and Leaves for Springs, of Iron or Steel

GENERAL INFORMATION

Customers :

¨ Electrolux (Usa)

¨ Hubner Gmbh – Germany

¨ Andre Hvac International Inc. Canada

¨ Maruti- Suzuki Limited

¨ Tata Motors Limited

¨ Hero Moto Corp

¨ International Tractors Limited

¨ Piaggio Vehicles Private Limited

¨ Lml Ltd.

¨ Gabriel India Limited

¨ Showa India Private Limited

¨ Munjal Showa Limited

¨ Indian Railways

¨ Jbm Group

¨ Rockman Industries Limited

No. of Employees :

Not Divulged

Bankers :

The Hongkong and Shanghai Banking Corporation Limited, 25, Birla House, Barakhamba Road, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	57.836	46.035
Rupee term loans from others	0.000	5.731
SHORT TERM BORROWINGS
Rupee term loans from banks	363.371	375.927
Total	421.207	427.693

Banking Relations :	--
Financial Institution :	¨ Hero Honda Finlease Limited, 34, Community Center, Basant Lok, Vasant Vihar, New Delhi - 110057, Delhi, India ¨ Tata Capital Financial Services Limited, One Forbes, Dr. V.B. Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	V S D and Associates Chartered Accountants
Address :	E-145, Basement Kalkaji, New Delhi, India
PAN No. :	AAEFV5670P
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	¨ Hema Engineering Industries Limited ¨ Emkay Auto (Indore) Private Limited ¨ Victoria Agro Food Processing Private Limited ¨ Emkay Auto Limited ¨ Wando India Private Limited ¨ Yieshu Marketing Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.1/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199366312	Equity Shares	Rs.1/- each	Rs.199.366 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	199.366	194.366	190.446
(b) Reserves & Surplus	231.663	186.228	127.833
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	19.600
Total Shareholders’ Funds (1) + (2)	431.029	380.594	337.879
(3) Non-Current Liabilities
(a) long-term borrowings	76.229	63.261	75.706
(b) Deferred tax liabilities (Net)	38.018	34.658	37.001
(c) Other long term liabilities	0.000	13.350	6.800
(d) long-term provisions	9.356	2.216	2.604
Total Non-current Liabilities (3)	123.603	113.485	122.111
(4) Current Liabilities
(a) Short term borrowings	373.593	376.203	416.818
(b) Trade payables	395.292	359.244	321.853
(c) Other current liabilities	126.405	101.257	89.096
(d) Short-term provisions	11.055	15.506	10.965
Total Current Liabilities (4)	906.345	852.210	838.732
TOTAL	1460.977	1346.289	1298.722
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	442.023	431.102	404.940
(ii) Intangible Assets	6.269	6.935	6.765
(iii) Capital work-in-progress	0.000	3.544	3.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	56.693	36.693	67.543
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	63.485	63.115	37.946
(e) Other Non-current assets	10.035	9.580	4.604
Total Non-Current Assets	578.505	550.969	524.798
(2) Current assets
(a) Current investments	1.167	21.141	1.290
(b) Inventories	328.447	266.013	201.112
(c) Trade receivables	402.171	398.075	404.677
(d) Cash and cash equivalents	15.354	6.501	26.617
(e) Short-term loans and advances	135.333	103.590	140.228
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	882.472	795.320	773.924
TOTAL	1460.977	1346.289	1298.722

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2188.072	2055.717	1854.296
		Other Income	6.606	16.646	7.725
		TOTAL	2194.678	2072.363	1862.021
Less	EXPENSES
		Cost of Materials Consumed	1510.704	1423.128	1290.813
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(13.502)	(70.464)	(5.406)
		Employees benefits expense	154.230	132.560	98.380
		Other expenses	379.289	430.191	352.085
		TOTAL	2030.721	1915.415	1735.872
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		163.957	156.948	126.149
Less	FINANCIAL EXPENSES		81.224	79.975	58.795
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		82.733	76.973	67.354
Less/ Add	DEPRECIATION/ AMORTISATION		38.938	35.188	30.792
	PROFIT/ (LOSS) BEFORE TAX		43.795	41.785	36.562
Less	TAX		3.360	(0.929)	7.446
	PROFIT/ (LOSS) AFTER TAX		40.435	42.714	29.116
	Earnings / (Loss) Per Share (Rs.)		0.21	0.21	0.15

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.84	2.06	1.56
Net Profit Margin (PBT/Sales)	(%)	2.00	2.03	1.97
Return on Total Assets (PBT/Total Assets}	(%)	3.12	3.20	2.98
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.11
Debt Equity Ratio (Total Debt/Networth)		1.04	1.15	1.46
Current Ratio (Current Asset/Current Liability)		0.97	0.93	0.92

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	190.446	194.366	199.366
Reserves & Surplus	127.833	186.228	231.663
Share Application money pending allotment	19.600	0.000	0.000
Net worth	337.879	380.594	431.029
long-term borrowings	75.706	63.261	76.229
Short term borrowings	416.818	376.203	373.593
Total borrowings	492.524	439.464	449.822
Debt/Equity ratio	1.458	1.155	1.044

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1854.296	2055.717	2188.072
		10.862	6.438

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1854.296	2055.717	2188.072
Profit	29.116	42.714	40.435
	1.57%	2.08%	1.85%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	17.410	6.437
Rupee term loans from others	0.983	5.058
SHORT TERM BORROWINGS
Rupee term loans from others	10.221	0.276
Total	28.614	11.771

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10471388	26/11/2013	14,000,000.00	RELIANCE CAPITAL LTD	"H" BLOCK 1ST FLOOR, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai, Maharashtra - 400710, INDIA	B93958312
2	10461849	17/10/2013	24,450,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	B90200288
3	10446098	14/07/2013	30,000,000.00	Hero FinCorp Limited	34, COMMUNITY CENTRE, BASANT LOK, VASANT VIHAR, NEW DELHI, Delhi - 110057, INDIA	B83584581
4	10416632	28/03/2013	16,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B72253297
5	10384636	19/10/2012	12,000,000.00	Hero FinCorp Limited	34, COMMUNITY CENTRE, BASANT LOK, VASANT VIHAR, NEW DELHI, Delhi - 110057, INDIA	B61441481
6	10355851	17/10/2013 *	83,150,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	B90201096
7	10355862	17/10/2013 *	91,750,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	B90198896
8	10353368	17/10/2013 *	64,450,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	B90200692
9	10486666	07/04/2007	50,000,000.00	The Hongkong and Shanghai Banking Corporation Ltd	25, Birla House, Barakhamba Road, New Delhi, Delhi - 110001, INDIA	A20952123
10	10007431	16/05/2006	3,700,000.00	Hero FinCorp Limited	34, COMMUNITY CENTRE, BASANT LOK, VASANT VIHAR, NEW DELHI, Delhi - 110057, INDIA	A01777762
11	90055637	22/03/2011 *	443,100,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, JAWAHAR VYAPAR BHAWAN, 1, TOLSTOY MARG, NEW DELHI, Delhi - 110001, INDIA	B11159605
12	90055532	26/02/2005 *	23,500,000.00	STATE BANK OF INDIA	SCB ; FOCAL POINT, LUDHIANA, Punjab, INDIA	-
13	90054859	26/03/2003	60,100,000.00	STATE BANK OF INDIA	SPECIALISED COMMERCIAL BRANCH, FOCAL PINT, LUDHIANA, Delhi, INDIA	-

* Date of charge modification

PERFORMANCE REVIEW AND OPERATIONS

During the year the company achieved a turnover of Rs. 2194.600 millions compared to Rs.2072.300 millions in the previous year. The net profit before tax has increased to Rs.43.700 millions compared to Rs. 41.700 millions in the previous year which resulted in satisfactory performance considering the cut throat competition in the automobiles industry. Efforts towards enhancement of turnover vis-à-vis improvement in profitability on going.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and Equipment

œ Furniture and Fixtures

œ Vehicles

œ Office Equipment

œ Computer Equipments

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.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	SUB
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.