MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	CUMMINS INDIA LIMITED
Registered Office :	Kothrud, Pune – 411038, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.02.1962
Com. Reg. No.:	11-012276
Capital Investment / Paid-up Capital :	Rs.554.400 Million
CIN No.: [Company Identification No.]	L29112PN1962PLC012276
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing of Diesel Engines and Filtration Equipments.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (65)

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 a well-established company having fine track record. The rating reflects company’s healthy operational risk profile marked by strong liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 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

EXTERNAL AGENCY RATING

Not Available

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 (91-20-25385435)

LOCATIONS

Registered Office / Factory 1 :	Kothrud, Pune – 411038, Maharashtra, India
Tel. No.:	91-20-25385435/ 25380240
Fax No.:	91-20-25380125
E-Mail :	amit.g.atre@cummins.com info@cumminsindia.com trivikram.guda@cummins.com
Website :	http://www.cumminsindia.com
Corporate Office :	Tower A, 5^th Floor, Survey No.21, Balewadi, Pune – 411045, Maharashtra, India
Tel. No.:	91-20-67067000
Fax No.:	91-20-67067015
Website :	www.cumminsindia.com
Factory 2 :	Plot No. 19/25A, Silver Industrial Estate, Bhimpore, Daman 396210, India
Factory 3 :	Plot No. 206/2, Off. Nagar Road, Haveli, Pune-411014, Maharashtra, India
Factory 4 :	Gat No. 311/B&1B, Kasar Amboli, District Pune - 412111, Maharashtra, India
Factory 5 :	35A/1/2 Erandwane, Pune - 411038, Maharashtra, India
Factory 6 :	MIDC Phaltan, Village Survadi, District Satara, Maharashtra, India

DIRECTORS

As on 31.03.2014

Name :

Anant J. Talaulicar

Designation :

Chairman and Managing Director

Address :

Flat No.1901, Strelling Tower, Goregaonkar Road, Gamdevi, Mumbai-400007, Maharashtra, India

Date of Birth/Age :

11.07.1961

Date of Appointment :

01.08.2013

DIN No.:

00031051

Name :

Antonio Leitao

Designation :

Director

Address :

14945, 43^rd Place N, Plymouth, MN 55444, U.S.A.

Date of Birth/Age :

03.02.1964

Date of Appointment :

01.08.2013

DIN No.:

05336740

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	L29112PN1962PLC012276	CUMMINS INDIA LIMITED	Director	01/08/2013	03/08/2012	-	Active	NO

Name :

Edward Pence

Designation :

Director

Address :

993 Box Turtle Court, Columbus, Indiana 47201, Columbus, U.S.A

Date of Birth/Age :

28.11.1957

Date of Appointment :

10.05.2013

DIN No.:

06577765

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	L29112PN1962PLC012276	CUMMINS INDIA LIMITED	Director	01/08/2013	10/05/2013	-	Active	NO

Name :

Nasser Munjee

Designation :

Director

Address :

Benedict Villa House No. 471, Saudevado, Chorao Island – 403102, Tiswadi, Goa

Date of Birth/Age :

18.11.1952

Date of Appointment :

01.08.2014

DIN No.:

0001080

Name :

Prakash .M. Telang

Designation :

Director

Address :

313-13^th Floor, Samudra Mahal, Dr. A. B. Worli, Mumbai-400018, Maharashtra, India

Date of Birth/Age :

21.06.1947

Date of Appointment :

01.08.2014

DIN No.:

00012562

Name :

Priya S. Dasgupta

Designation :

Director

Address :

J-1810, Chittrajan Park, New Delhi-110019, India

Date of Birth/Age :

30.06.1955

Date of Appointment :

01.08.2014

DIN No.:

00012552

Name :

Rajeev Balkrishna Bakshi

Designation :

Director

Address :

Sangha Residency, 12^th Floor TTA, Palki Lane, Off Cadell Road, Prabhadevi, Mumbai-400025, Maharashtra, India

Date of Birth/Age :

07.05.1957

Date of Appointment :

20.10.2000

DIN No.:

00044621

Name :

Venu Srinivasan

Designation :

Director

Address :

West Side House No.3 (2), Adyar Club Gate Road, R.A. Puram, Chennai-600028, Tamilnadu, India

Date of Birth/Age :

11.12.1952

Date of Appointment :

27.01.2000

DIN No.:

00051523

Name :

J.M. Barrowman

Designation :

Director

Address :

68, Rusell Terrace, Leamington Spa, Warwickshire, CV31 1HE, U.K

Date of Birth/Age :

06.03.1952

Date of Appointment :

08.11.2014

DIN No.:

00668324

Name :

Pradeep Bhargava

Designation :

Director

Address :

Flat No. 19, 3^rd Floor, Cozy Retreat, Road No. 3, Sind Co-Op. Housing Society, Aundh, Pune-411007, Maharashtra, India

Date of Birth/Age :

25.06.1949

Date of Appointment :

23.05.2014

DIN No.:

00525234

KEY EXECUTIVES

Name :	Mr. Pradip Phansalkar
Designation :	Senior Manager, Secretarial
Name :	Mr. Amit Atre
Designation :	General Manager - Legal and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	683	0.00
Sub Total	683	0.00
(2) Foreign
Bodies Corporate	141372000	51.00
Sub Total	141372000	51.00
Total shareholding of Promoter and Promoter Group (A)	141372683	51.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	31805749	11.47
Financial Institutions / Banks	20193716	7.28
Foreign Institutional Investors	48916339	17.65
Sub Total	100915804	36.41
(2) Non-Institutions
Bodies Corporate	7715405	2.78
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	24141422	8.71
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	1762535	0.64
Any Others (Specify)	1292151	0.47
Non Resident Indians	867942	0.31
Clearing Members	54128	0.02
Market Maker	3472	0.00
Hindu Undivided Families	320996	0.12
Trusts	45613	0.02
Sub Total	34911513	12.59
Total Public shareholding (B)	135827317	49.00
Total (A)+(B)	277200000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A+B+C)	277200000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Diesel Engines and Filtration Equipments.

Products :

Item Code No. (ITC Code)	Product Description
84089090	Internal Combustion Engine

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

• Bank of Baroda, Karve Road, Pune - 411004, Maharashtra, India
• State Bank of India, Industrial Finance Branch, Tara Chambers, Pune -411003, India

Facilities :

---

Financial Institution :

The Industrial Credit and Investment Corporation Of Ind. Limited 163, Backbay Reclamation, Bombay - 400020, Maharashtra, India

Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Mutha Towers, 5^th Floor, Suite No. 8, Airport Road, Yerwada, Pune – 411006, Maharashtra, India
Holding Company :	Cummins Inc.
Fellow subsidiaries :	Cummins (China) Investment Company Limited Cummins Asia Pacific Private Limited Cummins Brazil Limited Cummins Commercializadora S. de R.L. de C.V. Cummins Deutschland GmbH Cummins Diesel Italia S.P.A. Cummins Diesel N. V. Cummins DKSH (Singapore) Private Limited Cummins DKSH (Thailand) Limited Cummins Filtration, Inc. Cummins Fuel Systems (Wuhan) Company Limited Cummins Generator Technologies India Limited Cummins Generator Technologies Limited, UK Cummins Generator Technologies Mexico S De Rl De CV Cummins Ghana Limited Cummins Japan Limited Cummins Limited, UK Cummins Makina Sanayi Ve Ticar Cummins Middle East Fze Cummins Natural Gas Engines, Inc. Cummins Power Generation (China) Company Limited Cummins Power Generation (S) Private Limited Cummins Power Generation Inc. Cummins Power Generation Limited, Kent Cummins Qatar LLC Cummins Romania S.R.L. Cummins S De R L De CV Cummins Sales & Service Philippines, Inc. Cummins Sales and Service Korea Company Limited Cummins Sales and Service Singapore Private Limited Cummins South Africa Private Limited Cummins South Pacific Private Limited Cummins Spain S.L. Cummins Technologies India Limited Cummins Turbo Technologies Limited, UK Cummins West Africa Limited Cummins Westport Inc. Cummins, Belgium Distribuidora Cummins Centroamerica Costa Rica, S. de R.L. Distribuidora Cummins Centroamerica El Salvador, S. de R.L. Distribuidora Cummins Centroamerica Honduras, S. de R.L. Distribuidora Cummins DE Panama S.DE R. L Distribuidora Cummins S A Distribuidora Cummins S.A. - Sucursal Bolivia Komatsu Cummins Chile, Ltda. OOO Cummins Shanghai Cummins Trade Company Limited
Associate :	Cummins Generator Technologies India Limited
Joint Venture :	Valvoline Cummins Limited Cummins SVAM Sales and Services Limited Cummins Reseach and Technology India Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.2/-each	Rs.800.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
277200000	Equity Shares	Rs.2/-each	Rs.554.400 Million

Notes:

a. Reconciliation of number of shares

Equity Shares	31.03.2014
	No. of Shares	Amount (Rs. in Millions)
Balance as at the beginning and end of the year	277200000	554.400

b. Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having a par value of Rs.2 per share. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in the proportion to their shareholding.

c. Details of shareholders holding more than 5% of the aggregate shares in the Company

Particulars	31.03.2014
	No. of Shares	% of holding
Equity shares of Rs.2 each fully paid Cummins Inc., the holding company	141372000	51.00%
Life Insurance Corporation of India (Through various schemes)	17927497	6.47%

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	554.400	554.400	554.400
(b) Reserves & Surplus	25097.100	23312.900	19877.100
(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)	25651.500	23867.300	20431.500
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	465.100	327.800	0.000
(c) Other long term liabilities	201.900	191.400	147.000
(d) long-term provisions	1170.900	1293.500	1006.500
Total Non-current Liabilities (3)	1837.900	1812.700	1153.500
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	4851.100	5493.400	5166.200
(c) Other current liabilities	1856.700	2034.600	1516.500
(d) Short-term provisions	3530.100	3488.200	2749.200
Total Current Liabilities (4)	10237.900	11016.200	9431.900
TOTAL	37727.300	36696.200	31016.900
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9175.200	4895.800	4589.500
(ii) Intangible Assets	16.300	38.500	59.600
(iii) Capital work-in-progress	957.600	1207.900	496.700
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	533.900	533.900	755.100
(c) Deferred tax assets (net)	0.000	0.000	69.500
(d) Long-term Loan and Advances	6879.500	4726.300	3429.400
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	17562.500	11402.400	9399.800
(2) Current assets
(a) Current investments	4419.600	5741.700	5220.400
(b) Inventories	5513.400	5303.500	5676.100
(c) Trade receivables	7820.300	8549.900	6783.400
(d) Cash and cash equivalents	864.900	3546.500	2235.000
(e) Short-term loans and advances	1525.000	2061.900	1652.500
(f) Other current assets	21.600	90.300	49.700
Total Current Assets	20164.800	25293.800	21617.100
TOTAL	37727.300	36696.200	31016.900

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	39766.700	45893.800	41172.200
	Other Income	1777.100	2067.200	1233.300
	TOTAL	41543.800	47961.000	42405.500
Less	EXPENSES
	Cost of Materials Consumed	22808.400	27018.100	24466.400
	Purchases of Stock-in-Trade	1484.300	1854.300	2576.800
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(51.600)	1.900	(589.000)
	Employees benefits expense	3396.200	3386.200	3039.400
	Other expenses	5162.100	5284.500	4706.100
	TOTAL	32799.400	37545.000	34199.700
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	8744.400	10416.000	8205.800
Less	FINANCIAL EXPENSES	41.800	46.100	54.100
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	8702.600	10369.900	8151.700
Less/ Add	DEPRECIATION/ AMORTISATION	527.500	472.500	419.800
Less/ Add	Exceptional Items	0.000	615.900	514.400
	PROFIT/ (LOSS) BEFORE TAX	8175.100	10513.300	8246.300
Less	TAX (I)	2174.900	2872.200	2333.600
	PROFIT/ (LOSS) AFTER TAX	6000.200	7641.100	5912.700
Less	APPROPRIATIONS
	Transfer to General Reserve
	Dividend	3603.600	3603.600	3049.200
	Tax on Dividend	612.400	601.700	494.700
	Total	4216.000	4205.300	3543.900
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	12583.100	13159.700	12361.600
	Freight
	Insurance
	TOTAL EARNINGS	12583.100	13159.700	12361.600
	IMPORTS
	Raw Materials	521.600	658.800	576.500
	Machinery Spares	9.200	10.500	11.200
	Tools, Stores, etc.	9.600	7.800	133.400
	Components and Stores parts	4247.300	4471.900	3942.800
	Capital Goods	141.900	62.300	191.800
	TOTAL IMPORTS	4929.600	5211.300	4855.700
	Earnings / (Loss) Per Share (Rs.)	21.65	27.57	21.33

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	14.44	15.93	13.94
Operating Profit Margin (PBDIT/Sales)	(%)	21.98	22.69	19.93
Return on Total Assets (PBT/Total Assets}	(%)	22.56	30.08	27.77
Return on Investment (ROI) (PBT/Networth)		0.32	0.44	0.40
Debt Equity Ratio (Total Liability/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.97	2.30	2.29

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	3.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	554.400	554.400	554.400
Reserves & Surplus	19877.100	23312.900	25097.100
Net worth	20431.500	23867.300	25651.500
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	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	41172.200	45893.800	39766.700
		11.468	(13.351)

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	41172.200	45893.800	39766.700
Profit	8151.700	10369.900	8702.600
	19.80%	22.60%	21.88%

LOCAL AGENCY FURTHER INFORMATION

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

LITIGATION DETAILS:

LITIGATION DETAILS
Bench:- Bombay
Presentation Date :- 20.12.2013
Lodging No. :	CEXAL/358/2013	Failing Date:-	20/12/2013	Reg. No.:-	CEXA/156/2014	Reg. Date:-	23/09/2014
Petitioner:-	COMMISSIONER OF CENTRAL EXCISE, PUNE		Respondent:-	M/S. CUMMINS INDIA LIMITED
Petn. Adv:-	NEELESH VASANT KALANTRI (I4349)
District:-	MUMBAI
Bench:-	DIVISION		Category:-	Central Excise Appeal (CEXA)
Status:-	Pre-Admission		Stage:-	FRESH ADMISSION
Coram:-	HON’BLE SHRI JUSTICE S.C.DHARMADHIKARI HON’BLE SHRI JUSTICE A.A.SAYED
Last Date:-	11.04.2014		Stage:-	FOR REJECTION (ORIGINAL SIDE MATTERS)
Last Coram:-	REGISTRAR(OS)/PROTHONOTARY AND SR. MASTER
Act. :	Central Excise and Salt Act

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10352228	18/07/2014 *	1,320,000,000.00	State Bank of India	Industrial Finance Branch, Tara Chambers, Pune, Maharashtra - 411003, INDIA	C12752069
2	90089545	28/03/1990	10,300,000.00	BANK OF MAHARASHTRA	KARVE ROAD, PUNE, Maharashtra - 411004, INDIA	-
3	90089535	15/03/1990	3,400,000.00	THE UNITED WESTERN BANK LTD.	GANESH NAGAR, PUNE, Maharashtra - 411038, INDIA	-
4	90089531	28/02/1990	16,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
5	90089449	04/03/1989	10,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, BOMBAY, Maharashtra, INDIA	-
6	90087620	30/09/1988	1,730,000.00	THE UNITED WESTERN BANK LTD.	GANESH NAGAR BRANCH, PUNE, Maharashtra - 411038, I  NDIA	-
7	90089367	13/10/1987	1,217,800.00	BANK OF MAHARASHTRA	KARVE ROAD, PUNE, Maharashtra - 411004, INDIA	-
8	90083474	25/06/1987	1,000,000.00	BANK OF MAHARASHTRA	KARVE ROAD, PUNE, Maharashtra - 411104, INDIA	-
9	90089336	19/04/1987	560,300.00	THE UNITED WESTERN BANK LTD.	GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA	-
10	90089335	18/04/1987	285,100.00	THE UNITED WESTERN BANK LTD.	GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA	-

* Date of charge modification

FINANCIAL RESULTS:

During the Financial Year 2013-14, net revenue from operations was Rs.39766.700 Million as compared to Rs.45893.800 Million during the previous year (13% lower). Exports and other foreign exchange earnings stood at Rs.12583.100 Million as compared to Rs.13159.700 Million during the previous year (4% lower). Profit after tax decreased to Rs.6000.200 Million from Rs.7641.100 Million recorded for the previous year (21% lower).

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Developments

Economic Trends and Implications

• The Indian economic growth rate was flat with GDP growth estimated at 4.9%1) in FY 2013-14, as compared to a decade low of 4.5% in 2012-13. This was largely due to a slowdown in infrastructure investments, high inflation, political uncertainty, drop in foreign investment in the first three quarters of the fiscal and a weakening currency.

• FY 2013-14 saw the rupee decline to an all-time low as a result of the announcement of US tapering its simulative quantitative easing, slowing domestic economic growth as well as deficit spending on the part of the Indian government. Measures from the RBI helped arrest the fall of the rupee only to a very limited extent. The Current Account Deficit improved due to curbs on gold imports and lower domestic demand.

• The fiscal deficit improved due to reduction of fuel subsidies. The government took small and delayed steps to improve the business environment such as faster clearance of infrastructure projects, relaxation of FDI norms and new gas pricing guidelines. Measures are also being taken to lift mining bans which have adversely hit the exports of the country.

• Manufacturing output took a hit due to low demand and high interest rates. In spite of good monsoons resulting in lower food inflation, the repo rate was maintained at 8% to rein in core inflation.

• In the long term, India’s growth story remains intact, supported by a positive demographic dividend, rapid urbanization and increasing domestic consumption driven by a growing middle class.

• Post the elections in 2014, it is expected that the new government will take strong actions to revive growth.

Opportunities and Threats

Key Opportunities

Power Generation:

• The average energy deficit in India has been 4.2% with peak power deficit of 4.5% and the power capacity addition has been around 12.5 GW in the last year.

• CPCB II - the second set of lower emission norms applicable to generator sets below 800 kW, have been announced by the Central Pollution Control Board, to be effective from July 1, 2014. These norms are likely to change the competitive landscape as the new norms demand greater technological capabilities.

• New global products launched have resulted in additional export opportunities for diesel and gas products. With the product from India gaining confidence globally, the Company is receiving repeat orders from its global customers.

Industrial:

• The increase in budget allocation towards infrastructure announced in the recent budget is likely to help in the overall infrastructure development in the medium term.

• The Supreme Court has removed the ban on mining blocks in Goa, as a result of which the business in Mining and Marine is likely to witness some increase.

• Infrastructure debt funds have been promoted to provide finances for infrastructure projects. These ought to have positive implications on the construction market.

• Budgetary support to Railways increased from Rs.260000.000 Million in BE FY 2013-14 to Rs.290000.000 Million in FY 2014-15 which would help the railways business. The increase in government spends on safety, modernization and fuel-efficiency will create additional opportunity for the Company in 2014. About 35-40% growth is expected over FY 2013-14 in the Diesel Electric Multiple Units (DEMU) segment.

• Increase in Defense expenditure is likely to boost the Marine Naval and Defense businesses. In FY 2013-14, 19 Oil and Gas blocks were given out for exploration.

• The Company will continue to dwell on indirect exports which will drive growth while the domestic market is expected to grow during the latter half of the next fiscal.

Automotive:

• The M&HCV market (Medium and Heavy commercial vehicles - GVW >7.5 Ton) shrank by 20% in FY 2013-14 over the previous year. This was mainly driven by lower GDP growth, high interest rates and further impact of fuel subsidy reduction on diesel. The market scenario continues to be uncertain. Excise duty benefit given by the government has only moderately helped in improving the situation.

• The M&HCV space has seen the entry of new players, thereby increasing competition and price pressure.

• During the year, The Company launched a new product to attempt to change the dynamics within M&HCV, such as introduction of 4-Cylinder engines in the traditional 6-Cylinder applications in the 14T and 31T space.

• The Company launched electronic products with the increasing acceptability due to improved fuel economy and maintenance intervals.

Distribution:

• Emission regulations (CPCB II norms) and a shift to electronic engines is likely to improve the opportunities for the Distribution Business through increased sales of electronic parts and service opportunities.

• Improved customer reach, enhanced network capabilities and continuous improvement of service delivery and quality remains the key to drive profitable growth through Customer Support Excellence.

• The Company is continuing to invest heavily in modern capabilities to support long term growth. One major initiative is the introduction of a Common Dealer Operating System (CDOS) which will enable better data, information visibility and business integration across the dealer network and centrally by Cummins.

• The Company is also continuing to invest in Training Centers across the nation to ensure well trained technicians who will provide state-of–the-art support to the Company’s products.

Exports:

• Working with Cummins Inc., the Company was able to implement the identified opportunity with Brazil and Latin American markets for Heavy Duty engines. With the success of supplying Heavy Duty engines, new opportunities are being explored to supply High Horsepower engines to the Latin American market. The Company will continue to explore new geographies and hence markets to strengthen the exports portfolio.

• The Company successfully identified opportunities related to components supply to China. The Company will continue to build on this and increase the business in the coming years. Efforts continue to consolidate and maximize supplies of components from the Company by utilizing cost efficiencies.

Outlook and Initiatives for the Current Year and Thereafter

Power Generation:

• Domestic market sentiments continue to be weak for capital goods which includes the genset market in the short term. The domestic power generation business is unlikely to see volume increase in the forthcoming financial year. However, with the increased export offerings, the Company is more optimistic about its low kVA exports business.

• With CPCB implementing more stringent environmental norms in the current financial year, the Company is positioned favourably in the competitive landscape as pioneers in producing engines with higher fuel-efficiency and cleaner technology. This will however lead to significant cost increase and subsequent price increases.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30^TH SEPTEMBER 2014

Particular	Quarter Ended (Rs. in Million)
	30.09.2014
Income from Operations
Net Sales/Income from Operations	11171.300
Other Operating Income	269.300
Total Income from operations (net)	11440.600
Expenses
(a) Cost of materials consumed	6796.700
(b) Purchase of stock-in-trade	263.400
(c) Changes in Inventories of Finished Goods, work in progress and stock in trade	(2.400)
(d) Employee benefit expenses	1017.000
(e) Depreciation and amortization expenses	203.900
(f) Other Expenses	1466.700
Total Expenses	9745.300
Profit from Operations before Other Income, Finance costs and Exceptional item	1695.300
Other Income	736.400
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	2421.700
Finance costs	9.800
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	2411.900
Exceptional item	---
Profit/ Loss from Ordinary Activities before tax	2411.900
Tax Expenses	387.900
Net Profit/ Loss from Ordinary Activities after tax	2024.000
Extraordinary Items	---
Net Profit for the period	2024.000
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	554.400
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	---
Earnings per share
Basic and Diluted Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualized	7.30
Basic and Diluted Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualized)	7.30
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	135827317
Percentage of Shareholding	49%
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	---
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	---
- Percentage of Shares (as a % of the Total Share Capital of the Company)	---
Non - encumbered
- Number of Shares	141372683
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100%
- Percentage of Shares (as a % of the total share capital of the company)	51%

Particulars	Quarter ended , 30.09.2014
Investor complaints [Nos.]
Pending at the beginning of the quarter	Nil
Received during the quarter	4
Disposed of during the quarter	4
Remaining unresolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in Million)

Particulars	30.09.2014
	(Unaudited)
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	554.400
Reserves and Surplus	27599.200
	28153.600
Non-current Liabilities
Deferred tax liabilities (Net)	647.200
Long-term Liabilities	184.700
Long-term Provisions	1241.400
Current Liabilities
Trade Payables	6146.900
Other Current Liabilities	3877.800
Short-term Provisions	897.300
	10922.00
TOTAL EQUITY & LIABILITIES	41148.900
ASSETS
Non-current Assets
Fixed Assets	13036.800
Non-current Investments	457.300
Deferred Tax Assets (net)	5562.200
Long-term Loans and Advances	19056.300
Current Assets
Current Investments	1311.100
Inventories	6700.700
Trade Receivables	9173.200
Cash and Bank Balances	2932.800
Short-term Loans and Advances	1970.400
Other Current Assets	4.400
	22092.600
TOTAL ASSETS	41148.900

Note:

1. Other Income for the quarter ended June 30, 2014 includes profit on safe of long term investments of

Rs.826.300 Million, which is non - recurring.

2. Previous period ('s) / year ('s) figures have been re-grouped wherever necessary.

3. The Company operates in one primary business segment i.e. "Engines".

4. Pursuant to the requirements of The Companies Act, 2013 (the 'Act') the Company has revised the depreciation rates based on the estimated economic useful lives as prescribed by Schedule II to the Act from April 1, 2014. In case of fixed assets where the useful life is now completed as determined above, the Company has adjusted the net residual value at as April 1, 2014 (net of tax) aggregating to Rs.20.600 Million, to the Retained Earnings as allowed by the Act.

Depreciation expense for the quarter ended September 30, 2014 and for six months ended September 30, 2014 is higher by Rs.32.500 Million and Rs.66.400 Million respectively due to this revision.

5. The Board of Directors of the Company at their meeting held on September 10, 2014, have declared an interim dividend of Rs.5/- per equity share on 277,200,000 shares of Rs.2/- each fully paid up for the financial year 2014-15.

6. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 6, 2014. The results have been subjected to a 'Limited Review' by the Auditors of the Company.

FIXED ASSETS

Tangible Assets

• Land
• Leasehold Improvement
• Roads
• Buildings
• Plant and Machinery
• Furniture and Fixture
• Vehicles

Intangible Assets

• Software
• Technical Knowhow
• Global Sourcing Consideration

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.61.67
UK Pound	1	Rs.96.93
Euro	1	Rs.77.35

INFORMATION DETAILS

Information Gathered by :	NAY
Analysis Done by :	KAR
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		65

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.