MIRA INFORM REPORT

Report Date :

18.08.2014

IDENTIFICATION DETAILS

Name :	MUNJAL KIRIU INDUSTRIES PRIVATE LIMITED (w.e.f. 27.08.2007)
Formerly Known As :	HERO KIRIU INDUSTRIES PRIVATE LIMITED
Registered Office :	603, International Trade Tower, Nehru Place, New Delhi – 110019
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.07.2007
Com. Reg. No.:	55-166351
Capital Investment / Paid-up Capital :	Rs. 65.817 Millions
CIN No.: [Company Identification No.]	U34200DL2007PTC166351
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer brakes discs, brakes drums cylinder block, pressure plate, brake plate and steering knuckles for automotive original equipment.
No. of Employees :	900 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 3900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company is continuously incurring losses however, the company receives strong support from its JV partners through equity infusion, improving market position in domestic automotive market as brake component supplier as well as improving operating performance. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal for 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 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	ICRA
Rating	Long term loans (BBB)
Rating Explanation	Moderate degree of safety it carry moderate risk.
Date	January 2014

Rating Agency Name	ICRA
Rating	Working capital facilities (A2)
Rating Explanation	Strong degree of safety and low credit risk.
Date	January 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 PARTED BY

Name :	Mr. K M Gupta
Designation :	A G M in Finance
Contact No.:	91-124-4754400
Date :	14.08.2014

LOCATIONS

Registered Office :	603, International Trade Tower, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-124-4754400
Fax No.:	91-124-4754488
E-Mail :	tkumar@munjalkiriu.co.in bvij@munjalkiriu.co.in
Website :	www.munjalkiriu.co.in
Factory :	Plot No 192, Sector IV, Phase II, IMT Manesar, Gurgaon – 122050, Haryana, India

DIRECTORS

As on 23.07.2013

Name :

Mr. Pankaj Munjal

Designation :

Director

Address :

B-5, Greater Kailash-I, New Delhi – 110048, India

Date of Birth/Age :

15.12.1962

Date of Appointment :

11.02.2011

DIN No.:

00005330

PAN No.:

ABMPM8660M

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	U65921PB1979PTC004044	THAKURDEVI INVESTNENTS PRIVATE LIMITED	Director	20/11/1981	20/11/1981	21/05/2010	Active	NO
2	U65921PB1981PTC004730	BHAGYODAY INVESTMENTS PRIVATE LIMITED	Director	26/11/1981	26/11/1981	-	Active	NO
3	U27109PB1974PLC003386	SATYAM AUTO COMPONENTS LIMITED	Director	24/12/1981	24/12/1981	-	Active	NO
4	U67120PB1981PTC004752	MUNJAL INVESTMENTS PRIVATE LIMITED	Director	05/07/1984	05/07/1984	21/05/2010	Active	NO
5	U67120PB1981PTC004753	ANADI INVESTMENTS PRIVATE LIMITED	Director	13/07/1984	13/07/1984	21/05/2010	Active	NO
6	L34101HR1985PLC020934	MUNJAL SHOWA LIMITED	Director	16/05/1985	16/05/1985	-	Active	NO
7	U74140DL1987PLC026696	HERO FINANCIAL SERVICES LIMITED	Director	16/01/1987	16/01/1987	-	Active	NO
8	U27104HR1996PTC033093	SUNBEAM AUTO PRIVATE LIMITED	Director	02/05/1996	02/05/1996	21/05/2010	Active	NO
9	U35911PB1966PLC002667	HERO CYCLES LIMITED	Managing director	01/10/2011	24/02/1998	-	Active	NO
10	U72200DL2000PLC108318	HERO GLOBAL DESIGN LIMITED	Director	25/10/2000	25/10/2000	-	Active	NO
11	U74140DL2001PLC111461	HERO ASSOCIATES LIMITED	Director	28/06/2001	28/06/2001	-	Strike off	NO
12	U29299DL1998PLC093496	HERO MOTORS LIMITED	Managing director	26/09/2001	26/09/2001	-	Active	NO
13	U34102DL1997PTC088319	MUNJAL BROTHERS PRIVATE LIMITED	Director	02/08/2002	02/08/2002	-	Active	NO
14	U55204HR2007PTC048786	MUNJAL HOSPITALITY PRIVATE LIMITED	Director	08/01/2007	08/01/2007	-	Active	NO
15	U74900DL2007PTC164863	FALCON CYCLES PRIVATE LIMITED	Director	18/06/2007	18/06/2007	-	Active	NO
16	U34200DL2007PTC166351	MUNJAL KIRIU INDUSTRIES PRIVATE LIMITED	Director	11/02/2011	27/07/2007	-	Active	NO
17	U62200DL2008PTC177022	MUNJAL AVIATION PRIVATE LIMITED	Director	22/04/2008	22/04/2008	-	Active	NO
18	U74120DL2008PTC183682	MUNJAL ALTERNATE FUELS PRIVATE LIMITED	Director	24/09/2008	24/09/2008	-	Active	NO
19	U34300DL2008PTC185888	ZF HERO CHASSIS SYSTEMS PRIVATE LIMITED	Director	16/12/2008	16/12/2008	-	Active	NO
20	U35122DL2009PTC188762	HERO TRANSMISSION PRIVATE LIMITED	Director	24/03/2009	24/03/2009	-	Active	NO
21	U35920PB1988PLC008589	URBAN TRAIL CYCLES LIMITED	Director	29/09/2010	15/05/2010	-	Active	NO
22	U51399PB1988PTC008584	PRAGATI TYRES PRIVATE LIMITED	Director	29/09/2010	15/05/2010	-	Active	NO
23	U13204DL2010PTC207758	MUNJAL LIGHT METALS PRIVATE LIMITED	Director	01/09/2010	01/09/2010	-	Active	NO
24	U66000DL2011PTC224465	MUNJAL INSURANCE SERVICES PRIVATE LIMITED	Director	02/09/2011	02/09/2011	-	Active	NO
25	U35990DL2014PTC266813	PLUSDRIVE INTERNATIONAL PRIVATE LIMITED	Director	24/03/2014	24/03/2014	-	Active	NO

Name :

Mr. Sandeep Dinodia

Designation :

Director

Address :

A9, Maharani Bagh, New Delhi – 110065, India

Date of Birth/Age :

04.04.1962

Date of Appointment :

16.04.2012

DIN No.:

00005395

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	U28939DL2002PTC114374	SANDHAR TOOLING PRIVATE LIMITED	Director	07/06/2002	07/06/2002	-	Active	NO
2	L29130RJ1986PLC004536	HI-TECH GEARS LIMITED	Director	28/10/2002	28/10/2002	-	Active	NO
3	U29299DL1998PLC093496	HERO MOTORS LIMITED	Director	30/08/2004	30/08/2004	-	Active	NO
4	L31909MH1981PLC025519	LUMAX AUTO TECHNOLOGIES LIMITED	Director	11/07/2006	15/06/2006	-	Active	NO
5	U35911PB1966PLC002667	HERO CYCLES LIMITED	Director	28/09/2011	18/12/2010	-	Active	NO
6	U34200DL2007PTC166351	MUNJAL KIRIU INDUSTRIES PRIVATE LIMITED	Director	16/04/2012	24/12/2010	-	Active	NO
7	AAB-7484	S R DINODIA AND COMPANY LLP	Designated Partner	05/09/2013	05/09/2013	-	Active	NO

Name :

Mr. Junichi Hashiguchi

Designation :

Director

Address :

2-23, Misumicho Chigasaki Shi Kanagawa Ken, Japan

Date of Birth/Age :

09.09.1947

Date of Appointment :

10.07.2009

DIN No.:

02771545

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	U34200DL2007PTC166351	MUNJAL KIRIU INDUSTRIES PRIVATE LIMITED	Director	10/07/2009	07/07/2009	-	Active	NO

Name :

Mr. Shinji Kobayashi

Designation :

Director

Address :

2-6-19, Denechofuota-KU, Tokyo, Japan

Date of Birth/Age :

12.10.1962

Date of Appointment :

23.07.2013

DIN No.:

06557641

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	U34200DL2007PTC166351	MUNJAL KIRIU INDUSTRIES PRIVATE LIMITED	Director	23/07/2013	18/04/2013	-	Active	NO

Name :

Mr. Hideo Yoshioka

Designation :

Managing director

Address :

2963-7, Hasse-Chou, Wada, Miura-City, Kanagawa Predectture 2380114

Date of Birth/Age :

24.10.1958

Date of Appointment :

01.12.2013

DIN No.:

06719864

KEY EXECUTIVES

Name :	Mr. Tarun Kumar
Designation :	Secretary
Address :	F-269, Pandav Nagar, New Delhi – 110092, India
Date of Birth/Age :	12.02.1982
Date of Appointment :	31.12.2012
PAN No.:	BZFPK4807A
Name :	Mr. K M Gupta
Designation :	A G M in Finance
Name :	Mr. K. Saravanan
Designation :	President and CEO
Name :	Mr. Bhawnesh Vij
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.07.2013

Names of Shareholders	No. of Shares	%age holding
Hero Motors Limited, India	3038995	43.43
Hero Cycles Limited, India	389614	5.57
Kiriu Corporation, Tochigi	3025133	43.23
Sumitomo Corporation, Tokyo	109979	1.57
Sumitomo Corporation India Private Limited, India	433441	6.19
Total	6997162	100.00

Equity Share Break up (Percentage of Total Equity)

As on 23.07.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	44.81
Bodies corporate	55.19
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer brakes discs, brakes drums cylinder block, pressure plate, brake plate and steering knuckles for automotive original equipment.
Exports :
Products :	Finished Goods
Countries :	· USA · Colombo
Imports :
Products :	RAW Material
Countries :	Japan
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

· Maruti Suzuki

· Missan Motor India Private Limited

No. of Employees :

900 (Approximately)

Bankers :

· Indian Bank, A-7, Ring Road, South Extension Part-I, New Delhi - 110049, Delhi, India

· Allahabad Bank, 17, Industrial Finance Branch, Parliament Street, New Delhi - 110001, Delhi, India

· Mizuho Corporate Bank Limited

· Citi Bank

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	207.792	797.268
Loans taken for vehicles	0.044	0.703
Short-term borrowings
Working capital loans from banks	19.864	38.666
Total	227.700	836.637

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Building No. 10, 8^th Floor, Tower B, DLF Cyber City, Phase II, Gurgaon – 122002, Haryana, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFB9852F
Joint Venture/ Enterprises:	· Kiriu Corporation, Japan · Sumitomo Corporation, Japan · Sumitomo Corporation India Private Limited, India [U51909DL1997PTC084471] · Hero Motors Limited, India [U29299DL1998PLC093496]
Enterprises over which key management personnel or their relatives have significant influence:	· Metcorp · ZF Hero Chassis Systems Private Limited, India [U34300DL2008PTC185888] · Hero Cycles Limited, India [U35911PB1966PLC002667]

CAPITAL STRUCTURE

As on 23.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6997162	Equity Shares	Rs.10/- each	Rs. 69.972 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6581697	Equity Shares	Rs.10/- each	Rs. 65.817 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	65.817	61.362	59.275
(b) Reserves & Surplus	921.657	956.383	1058.672
(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)	987.474	1017.745	1117.947
(3) Non-Current Liabilities
(a) long-term borrowings	1917.100	1437.971	877.222
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	5.196	4.086	1.593
Total Non-current Liabilities (3)	1922.296	1442.057	878.815
(4) Current Liabilities
(a) Short term borrowings	179.864	548.666	193.284
(b) Trade payables	278.780	218.241	229.943
(c) Other current liabilities	166.898	176.891	218.069
(d) Short-term provisions	0.449	0.112	0.951
Total Current Liabilities (4)	625.991	943.910	642.247
TOTAL	3535.761	3403.712	2639.009
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2865.610	2273.206	1958.623
(ii) Intangible Assets	8.307	9.055	4.209
(iii) Capital work-in-progress	34.777	590.878	114.677
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	23.234	24.119	98.272
(e) Other Non-current assets	1.744	1.602	1.507
Total Non-Current Assets	2933.672	2898.860	2177.288
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	177.940	143.961	121.983
(c) Trade receivables	337.169	222.062	190.508
(d) Cash and cash equivalents	37.486	23.442	94.596
(e) Short-term loans and advances	48.848	108.280	43.147
(f) Other current assets	0.646	7.107	11.487
Total Current Assets	602.089	504.852	461.721
TOTAL	3535.761	3403.712	2639.009

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	1685.769	1215.490	1063.522
	Other Income	NA
	TOTAL (A)	NA	1215.490	1063.522
Less	EXPENSES (B)	NA	1203.164	974.787
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	191.906	12.326	88.735
Less	FINANCIAL EXPENSES (D)	200.511	164.564	123.857
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(8.605)	(152.238)	(35.122)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	214.672	157.897	121.113
	PROFIT/ (LOSS) BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND TAX	(223.277)	(310.135)	(156.235)
Less	PRIOR PERIOD TAX ADJUSTMENT	(0.005)	(0.069)	(0.122)
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(223.272)	(310.204)	(156.113)
Less	TAX (I)	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(223.272)	(310.204)	(156.113)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(835.017)	(524.813)	(368.700)
	Balance Carried to the B/S	(1058.289)	(835.017)	(524.813)
	Earnings / (Loss) Per Share (Rs.)	(31.91)	NA	NA

Particulars	31.03.2014
Sales Turnover (Approximately)	2200.000

Expected Sales (2014-2015) : Rs.2700.000 Millions

The above information has been parted by Mr. K M Gupta

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	(25.52)	(14.68)
Net Profit Margin (PBT/Sales)	(%)	(13.24)	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	(6.38)	(11.03)	(6.18)
Return on Investment (ROI) (PBT/Networth)		(0.23)	(0.30)	(0.14)
Debt Equity Ratio (Total Debt /Networth)		2.12	1.95	0.96
Current Ratio (Current Asset/Current Liability)		0.96	0.53	0.72

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	59.275	61.362	65.817
Reserves & Surplus	1058.672	956.383	921.657
Net worth	1117.947	1017.745	987.474
long-term borrowings	877.222	1437.971	1917.100
Short term borrowings	193.284	548.666	179.864
Total borrowings	1070.506	1986.637	2096.964
Debt/Equity ratio	0.958	1.952	2.124

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FINANCIAL PERFORMANCE

The Company achieved a net turnover of Rs. 1685.769 Millions during the year as against Rs. 1204.550 Millions achieved during the last year, which is nearly 40% more than last year.

During the year new Machining lines were fully commissioned in order to cope the demand from customers.

The company stands committed to continuing growth and expansion with profitability. Towards, this, they are constantly seeking to induct new products that offer higher value to keep pace with evolving trends and market demands, both in India and overseas. They are simultaneously focusing on enhancing their capacities and delivery capabilities so that they are seen as a reliable global player. The great emphasis is being laid on professional and continuous improvement.

COMPANY OVERVIEW

Subject was incorporated in India on 27 July 2007. The name of the Company was subsequently changed to Munjal Kiriu Industries Private Limited w.e.f. 27 August 2007. The foundry division of Hero Motors Limited has been acquired by the Company on a going concern basis through slump sale vide business transfer agreement dated 5 December 2007 effective from 10 December 2007 at a net consideration of Rs. 1143.695 Millions payable through the issue of 4,990,000 equity shares of the Company at a premium of Rs. 208.97 each and the balance in cash.

In the year 31st March 2011, the Company has undergone significant change in the shareholding pattern vide Share Purchase and Share Subscription agreement and Joint Venture Agreement dated 24 December 2010. Hero Motors Limited (erstwhile holding company) has transferred 745,386 shares to Kiriu Corporation, Japan thereby reducing its stake from 66.66% to 49.0% during the year ending 31st March 2011.

The accompanying financial statements reflect the results of the activities undertaken by the Company during the year ended 31 March 2013.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	1709.264	640.000
Short-term borrowings
Working capital loans from banks	160.000	510.000
Total	1869.264	1150.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10512559	04/07/2014	1,800,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	C14819858
2	10356399	21/04/2012	275,100,000.00	ALLAHABAD BANK	17,, INDUSTRIAL FINANCE BRANCH, PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA	B39872304
3	10208837	18/10/2010 *	60,000,000.00	INDIAN BANK	A- 7. RING ROAD, SOUTH EXTENSION, PART- I, NEW DELHI, DELHI - 110049, INDIA	A98701014
4	10188964	16/05/2014 *	300,000,000.00	INDIAN BANK	BRANCH-SOUTH EXTENSION, PART-1, A-7, RING ROAD, NEW DELHI, DELHI - 110049, INDIA	C05328265
5	10188963	08/01/2011 *	1,422,000,000.00	INDIAN BANK	A-7, RING ROAD, SOUTH EXTENTION, PART -I, NEW DELHI, DELHI - 110049, INDIA	B06399133

* Date of charge modification

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Motor vehicles

· Computer equipments

Intangible assets

· Computer software

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.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.