MIRA INFORM REPORT

Report Date :

29.12.2014

IDENTIFICATION DETAILS

Name :	MRF LIMITED
Registered Office :	New No. 114, (Old No. 124), Greams Road, Chennai – 600006, Tamilnadu
Country :	India
Financials (as on) :	30.09.2014
Date of Incorporation :	05.11.1960
Com. Reg. No.:	18-004306
Capital Investment / Paid-up Capital :	Rs.42.400 Millions
CIN No.: [Company Identification No.]	L25111TN1960PLC004306
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEM07088E CHEM06754G CHEM04457F
PAN No.: [Permanent Account No.]	AAACM4154G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged mainly in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt.
No. of Employees :	15343 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (80)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 129000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an India’s largest manufacturer of automotive tyres and tubes. It is a well-established and reputed company having excellent track record. The rating reflects MRF’s strong market leadership position in the domestic tyre industry characterized by presence across all the user segments with significant market aided by wide distribution network, strong brand image with diverse product offering. Further rating also reflects strong liquidity position and decent profitability levels. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = AAA
Rating Explanation	Highest degree of safety and carry lowest credit risk
Date	09.10.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	09.10.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DENIED

Management Non-Cooperative (Tel No.: 91-44-28292777)

LOCATIONS

Registered Office :	New No. 114, (Old No. 124) Greames Road, Chennai – 600006, Tamilnadu, India
Tel. No.:	91-44-28292777
Fax No.:	91-44-28295087/ 28294089 / 28291844/ 0562
E-Mail :	mrfmktg@vsnl.com mrfexpo@vsnl.com mrfmalt@md2.vsnl.net.in mrfshare@md3.vsnl.net.in mrfshare@mrfmail.com mrfexpo@mrfmail.com
Website :	www.mrftyres.com
Factory 1:	Tiruvottiyur, Chennai, Tamilnadu, India
Factory 2:	Vadavathoor, Kottayam Kerala, India
Factory 3:	Usgao, Ponda, Goa, India
Factory 4:	Icchiputhur, Arakonam, Tamilnadu, India
Factory 5:	Eripakkam Village, Nettapakkam Commune, Pondicherry, India
Factory 6:	Sadasivapet, Medak, Andhra Pradesh, India
Factory 7:	Naranamangalam Village and Post, Kunnam Taluk, Perambalur District, (Near Trichy) Tamilnadu, India

DIRECTORS

As on 30.09.2013

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

KEY EXECUTIVES

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

SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	560255	13.21
Bodies Corporate	577903	13.63
Sub Total	1138158	26.84
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	19619	0.46
Sub Total	19619	0.46
Total shareholding of Promoter and Promoter Group (A)	1157777	27.30
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	259953	6.13
Financial Institutions / Banks	13473	0.32
Insurance Companies	151399	3.57
Foreign Institutional Investors	323827	7.64
Sub Total	748652	17.65
(2) Non-Institutions
Bodies Corporate	1088089	25.66
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	856930	20.21
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	389695	9.19
Sub Total	2334714	55.05
Total Public shareholding (B)	3083366	72.70
Total (A)+(B)	4241143	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	4241143	100.00

BUSINESS DETAILS

Line of Business :

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

Products :

Products Description	ITC Code
New Pneumatic Tyres of Rubber	40110000
Inner Tubes of Rubber	40130000
Tyre Flaps	40129049
Camel Black Strips for Retreading Rubber	40061000

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

15343 (Approximately)

Bankers :

· State Bank of India, Madame Cama Road, Mumbai

· National Bank of Abu –Dhabi – Dubai

· Standard Chartered Bank – Dubai

· Bank for Foreign Trade of Vietnam

· Syndicate Bank

Facilities :

SECURED LOANS	30.09.2014 Rs. In Millions	30.09.2013 Rs. In Millions
Long Term Borrowings
External Commercial Borrowings (ECB)		2046.200
Debentures
2000 9.07% Secured Redeemable Non-Convertible Debentures of Rs.10,00,000 each, privately placed		1350.000
5000 10.09% Secured Redeemable Non-Convertible Debentures of Rs.10,00,000 each, privately placed		5000.000
Short Term Borrowings
Working Capital Facilities from Banks		4203.000
Total	NA	12599.200

Banking Relations :

--

Auditors :

Name 1 :

Sastri and Shah

Chartered Accountants

Address :

Chennai, Tamilnadu, India

Name 2 :

M. M. Nissim and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

Memberships :

--

Collaborators :

--

Subsidiaries (As on 30.09.2013) :

· MRF Corporation Limited

· MRF International Limited

· MRF Lanka (Private) Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.42.400 Millions

As on 30.09.2013

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4241143	Equity Shares	Rs.10/- each	Rs.42.400 Millions

Rights, preferences and restrictions attached to shares

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

Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares
Comprehensive Investment and Finance Company Private Limited	422069
MOWI Private Limited	507984
Enam Shares and Securities Private Limited	266713

LISTING DETAILS:

Subject Stock Code :	BSE : 500290 NSE : MRF
Stock Exchange Place :	The Stock Exchange, Mumbai,  National Stock Exchange of India Limited
Listed Date :	08.02.1995

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.09.2014	30.09.2013	30.09.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	42.400	42.400	42.400
(b) Reserves & Surplus	45,134.000	36,409.000	28,535.600
(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)	45,176.400	36,451.400	28,578.000
(3) Non-Current Liabilities
(a) long-term borrowings	11,987.500	9,524.600	11,027.100
(b) Deferred tax liabilities (Net)	2,353.100	2,223.100	1,867.200
(c) Other long term liabilities	11,448.400	10,432.300	9,080.300
(d) long-term provisions	918.500	752.400	872.900
Total Non-current Liabilities (3)	26,707.500	22,932.400	22,847.500
(4) Current Liabilities
(a) Short term borrowings	6,162.500	4,762.300	5,287.200
(b) Trade payables	11,397.200	10,214.300	9,394.300
(c) Other current liabilities	5,392.900	5,522.300	4,543.300
(d) Short-term provisions	3,133.100	2,690.700	1,472.400
Total Current Liabilities (4)	26,085.700	23,189.600	20,697.200
TOTAL	97,969.600	82,573.400	72,122.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	40,553.600	29,641.500	29,078.100
(ii) Intangible Assets	0.000	53.900	59.900
(iii) Capital work-in-progress	0.000	3,591.200	4,146.500
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1,517.600	846.800	715.400
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2,242.700	1,381.200	572.300
(e) Other Non-current assets	421.100	348.900	304.600
Total Non-Current Assets	44,735.000	35,863.500	34,876.800
(2) Current assets
(a) Current investments	9,361.500	8,214.800	3,531.700
(b) Inventories	17,997.000	17,952.900	16,455.900
(c) Trade receivables	17,084.700	15,561.400	14,540.900
(d) Cash and cash equivalents	7,076.700	3,308.100	611.000
(e) Short-term loans and advances	1,367.500	1,451.400	2,034.200
(f) Other current assets	347.200	221.300	72.200
Total Current Assets	53,234.600	46,709.900	37,245.900
TOTAL	97,969.600	82,573.400	72,122.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2014	30.09.2013	30.09.2012
	SALES
		Revenue from Operations	131,975.800	121,311.600	118,701.800
		Other Income	656.200	290.300	320.100
		TOTAL (A)	132,632.000	121,601.900	119,021.900
Less	EXPENSES
		Cost of Materials Consumed	82,989.000	78,008.300	83442.700
		Purchases of Stock-in-Trade	612.200	1,251.300	264.800
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	191.800	(267.300)	(178.300)
		Employees benefits expense	7,326.900	6,034.900	5,136.900
		Other expenses	21,576.500	18,618.000	17,425.700
		TOTAL (B)	112,696.400	103,645.200	106091.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19,935.600	17,956.700	12,930.100
Less	FINANCIAL EXPENSES (D)		2,315.800	1,959.400	1,587.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17,619.800	15,997.300	11,342.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4,230.900	3,729.300	3,011.100
	PROFIT BEFORE TAX (E-F) (G)		13,388.900	12,268.000	8,331.200
Less	TAX (H)		4,410.000	4,245.900	2,607.600
	PROFIT AFTER TAX (G-H) (I)		8,978.900	8,022.100	5,723.600
Less	APPROPRIATIONS
		Interim Dividend	NA	25.400	25.400
		Final Proposed Dividend	NA	101.800	80.600
		Tax Thereon	NA	21.500	17.300
		Debenture Redemption Reserve	NA	285.200	288.000
	BALANCE CARRIED TO THE B/S		NA	7588.200	5312.300
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	NA	12237.700	12576.200
		Freight & Insurance	NA	81.400	67.900
		Interest	NA	0.100	3.800
		Others	NA	10.200	9.00
	TOTAL EARNINGS		NA	12329.400	12656.900
	IMPORTS
		Raw Materials	NA	30377.000	31175.700
		Components & Spare Parts	NA	417.900	412.400
		Capital Goods	NA	868.800	1448.200
	TOTAL IMPORTS		NA	31663.700	33036.300
	Earnings Per Share (Rs.)		2117.09	1891.49	1349.52

KEY RATIOS

PARTICULARS		30.09.2014	30.09.2013	30.09.2012
Net Profit Margin (PAT/Sales)	(%)	6.80	6.61	4.82
Operating Profit Margin (PBIDT/Sales)	(%)	15.11	14.80	10.89
Return on Total Assets (PBT/Total Assets}	(%)	13.88	15.70	12.39
Return on Investment (ROI) (PBT/Networth)		0.30	0.34	0.29
Debt Equity Ratio (Total Debt /Networth)		0.40	0.39	0.57
Current Ratio (Current Asset/Current Liability)		2.04	2.01	1.80

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	30.09.2012	30.09.2013	30.09.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	42.400	42.400	42.400
Reserves & Surplus	28535.600	36409.000	45134.000
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	28578.000	36451.400	45176.400
long-term borrowings	11027.100	9524.600	11987.500
Short term borrowings	5287.200	4762.300	6162.500
Total borrowings	16314.300	14286.900	18150.000
Debt/Equity ratio	0.571	0.392	0.402

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.09.2012	30.09.2013	30.09.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	118,701.800	121,311.600	131,975.800
		2.199	8.791

NET PROFIT MARGIN

Net Profit Margin	30.09.2012	30.09.2013	30.09.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	118,701.800	121,311.600	131,975.800
Profit	5,723.600	8,022.100	8,978.900
	4.82%	6.61%	6.80%

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CASE DETAILS:

CHENNAI COURT

CASE STATUS INFORMATION SYSTEM

Case Status:	Pending
Status Of:	CIVIL REVISION PETITION
Case No.:	2929
Year :	2013
Petitioner :	M/S FLYJAC LOGISTICS P LIMITED
Respondent :	M/S MRF LIMITED
Pet's Advocate :	M/S.T.V.BADRINARAYANAN
Res's Advocate :	M/S NAGESWARAN AND NARICHANI
Category :	NO CATEGORY MENTIONED
	Last Listed on: No Date Mentioned
Case Updated on :	Sep 8 2014

CHARGES

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
MRF LIMITED		CBEC	DEFAULTED IN PAYMENT OF CUSTOMS/EXCISE DUTIES	NOTICE ISSUED UNDER SECTION 142 OF CUSTOMS ACT, 1962 28-FEB-2013
MRF LIMITED		BSE	DID NOT SUBMIT SHAREHOLDING PATTERN UNDER PROVISIONS OF CLAUSE 35 FOR THE QUARTER ENDED 31-DECEMBER-2009	PUT UP ON BSE WEBSITE FOR PUBLIC NOTICE 31-DEC-2009	NOT APPEARING IN THE LIST FOR THE QUARTER ENDED 31-MARCH-2010

UNSECURED LOAN:

Particulars	30.09.2014 Rs. In Millions	30.09.2013 Rs. In Millions
Long Term Borrowings
Term Loan from a Bank
Buyers Line of Credit		00000
Fixed Deposits		314.900
Sales Tax Deferral Scheme		618.400
Others
Deferred Payment Credit		195.100
Short Term Borrowings
Buyers line of credit		559.300
Total	NA	1687.700

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10330357	05/01/2012	2,046,160,000.00	The Bank of Tokyo-Mitsubishi UFJ Limited	Raffles Place, # 01-01 Republic Plaza, Singapore, - 048619, Singapore	B30083505
2	10303189	25/08/2011 *	5,000,000,000.00	Axis Trustee Services Limited	Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India	B20844015
3	10279192	25/08/2011 *	2,000,000,000.00	Axis Trustee Services Limited	Axis House, 2nd Floo, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, India	B20845285
4	10030186	08/12/2006	610,000,000.00	Infrastructure Development Finance Company Limited	ITC Centre, 3rd Floor 760, Anna Salai, Chennai - 600 002, Tamil Nadu, India	A08378762

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

NEWS:

MARGINS MAY NOT IMPROVE DESPITE DROP IN RUBBER PRICES: MRF

Tyre maker MRF today reported almost flat standalone net profit in the December quarter at Rs.1798.000 Millions. It had reported net profits of Rs.1802.200 Millions in October-December quarter of the previous year.

Speaking to CNBC-TV18's Sonia Shenoy, Koshy K Varghese, Exective VP- Marketing at MRF said the drop in rubber prices did not help the company's EBITDA margins as other input costs went up. Along with that, the ongoing recession in the auto industry did not help the Chennai-based tyre manufacturer.

"In this quarter, there would be pressure in the market, especially topline pressure. So, one has to wait and watch but margins may not improve significantly even though rubber has softened," he told the channel.

Below is the transcribed interview of Koshy Varghese with CNBC-TV18.

Q: Could you take us through the margin picture and whether there have been any improvement considering the fall that we have seen in rubber prices?

A: The EBITDA margins Q-o-Q have remained more or less the same at about 13 percent though rubber price drop in January, but otherwise is not much of a significant change because the input cost of other items have gone up which in a way countered the margin drop.

Q: What kind of margins could be sustainable going ahead given the fall that we have seen in rubber prices in the month of January?

A: One part of the story is the drop in rubber price but the other part of the story is the drop in demand on account of the recession the auto industry is going through. The only consolation is the drop in rubber; other than that, prices have inched up. So in this quarter, there would be pressure in the market, especially topline pressure. So, one has to wait and watch but margins may not improve significantly even though rubber has softened.

Q: We are seeing that slowdown in your topline because of the slow growth in the Original Equipment Manufacturer (OEM) sector, so Rs.32000.000 Millions compares to about Rs.30260.000 Millions, not too much of a growth but a growth nevertheless. Do you think this low single digit topline growth will continue well into FY15, what could be the ballpark range of the topline growth?

A: Large depends upon how the OEM segments operate in the coming quarters which don’t seem to be very bullish. All current trends indicate that it will continue to be soft till probably the elections are over and there is clarity on policies. So, one is probably feeling that it will remain at current levels and may not show much improvement in the coming quarters.

Q: What about the capacity expansion that MRF has seen. Going forward what could that look like?

A: Capacity expansions are done with a long-term view and not with the current situation in mind. Looking forward, we expect that the auto industry would do well in the long-term and therefore, our capacity expansion, which we have been doing in the past, would continue across both - our existing plants adding across product category. On that we will not go back.

Q: And what would the capex number for FY15 be?

A: The capex number could be in the region of Rs.8000.000-10000.000 Millions a year, for this year.

MRF CHALLENGE TO GO INTERNATIONAL FOR FIRST TIME

The MRF Challenge 2013 season will kick-start this weekend with the first round being held at the Buddh International Circuit (BIC) in Greater Noida.

The FIA sanctioned MRF Challenge will serve as the sole support race for the Formula One Indian Grand Prix. The four round calendar will include 14 races, and will see the leading single-seater racing category in India go international with two rounds to be held in Bahrain in November and December.

The final round of the championship will be held in Chennai in February. MRF also confirmed a prize money of Rs.6.500 Millions for the winners of the In its second year, the MRF Challenge 2013 will feature 18 MRF Formula 2000 race cars, which have been made in India by JA Motorsport based in Coimbatore, in collaboration with Dallara, world's largest racing car manufacturer and also Jayem Automotives Limited, which is a strategic partner for Tata Motors Limited.

The Formula 3 style car has been built by JA Motorsport in technical collaboration with Dallara, and is considered to be the fastest of its kind in Asia. The MRF Formula 2000 is powered by a 2.0 litre 210 BHP Renault Sport Engine and will have a Hewland 6-Speed sequential gearbox. The race car has also been crash tested to FIA F3 safety standards and will race with MRF ZLO slick and wet tyres.

Mr. Arun Mammen, Managing

Director, MRF Tyres, commented, "We are extremely pleased to launch the second season of the MRF Challenge. After the resounding success in our inaugural season we are keen to build on it and further improve the show. We are proud of the fact that this is the first time that an Indian motorsport series will be held internationally.

JA Motorsport has done an incredible job developing the MRF Formula 2000 race car and is constantly innovating to ensure the cars are world class. These cars are part of the most technologically advanced series of its type and one of the fastest in Asia."

Last year's success has also led to the MRF Challenge 2013 having one of the strongest grids in Asia. Drivers from Formula Renault 3.5, British F3, European F3 will battle it out in this season's MRF Challenge. Arthur Pic, FR 3.5 driver and brother of Caterham F1 driver Charles Pic, will race alongside Tio Ellinas, 2013 GP3 race winner, Harry Tincknell and Rupert Svendsen-Cook, British F3 multiple race winners, and Sam Brabham, son of Le Mans legend David Brabham and grandson of Jack Brabham. There will be four Indians on the grid with 2012 Formula Pilota Asian Champion Parth Ghorpade, former F2 racer Parthiva Sureshwaren, and 2013 MRF 1600 winner and runner-up Ashwin Sundar and Vikash Anand.

Narain Karthikeyan, India's first Formula One driver, was impressed with the driver line up for this and was confident of another great season ahead.

He commented, "The MRF Challenge 2013 promises to be the hottest championship in Asia this year with a great driver line-up. It is great to see the calibre of drivers committing to this series. Participation of drivers from across the globe is a testament to the credibility the series has built in just a year. MRF has done a great job in creating this world-class championship and I believe it will just get bigger in the years to come."

The MRF Challenge 2013 will continue to use the professional setup that worked well last time around as they get the best European engineers and mechanics who were associated with F3, GP3 and F1 championships and also we have got very experienced professionals like, Mr. Antony Heitt and Mr. Jos Claes, Technical Head, Dallara.

Mr. J Anand, Managing Director, JA Motorsports, was pleased with the way everything was shaping up for the first race of the season. He commented, "When MRF first came to me with their vision of the MRF Challenge, I was excited to see the commitment from India's largest tyre manufacturer towards motorsport. MRF was also very keen that we build everything in-house and put India on the motorsport map, as genuine experts in building Formula cars.

In order to make this championship professional and transparent, we are bringing down F3 engineers and mechanics from Europe, and have a close association with Dallara and Renault Sport. We have developed the MRF tyres from last year and the test drivers have given us positive feedback with the new compounds. We are excited about a great season ahead."

The first round will feature two races as part of the Indian GP weekend at BIC this coming weekend. The second round will take place in Bahrain as the support race for the World Endurance Championship final race, the third round will also take place in Bahrain as part of the Gulf National Racing Festival and the final round will be held at the MMRT in Chennai. The second, third and fourth round will feature four races each.

Last year's MRF Challenge featured some of the top drivers in Europe. Race winners from last year have benefited from participation in this series. Race winner Jordan King won the British F3 title this year, while last year's inaugural champion Conor Daly won races in GP3 in 2013 before making the switch to Indycar in the U.S. Jon Lancaster, another race winner, featured heavily in the GP2 championship winning two races along the way.

Mr. Arun Mammen, Managing Director, MRF Tyres, added, "It is heartening to see young international drivers wanting to drive in the India-based MRF Challenge 2013. To be support race at the Indian GP and World Endurance Championship round is an honour for us and speaks volumes of our commitment to promote motorsport not only nationally but internationally as well. I would like to thank all our partners for helping us create this exciting serie

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.63.65
UK Pound	1	Rs.98.98
Euro	1	Rs.77.74

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILITY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		80

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.