MIRA INFORM REPORT

Report Date :

03.01.2014

IDENTIFICATION DETAILS

Name :	HONDA CARS INDIA LIMITED (w.e.f 06.09.2012)
Formerly Known As :	HONDA SIEL CARS INDIA LIMITED HONDA SIEL CARS INDIA PRIVATE LIMITED
Registered Office :	409, Tower B, DLF Commercial Complex, Jasola, New Delhi - 110025
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.12.1995
Com. Reg. No.:	55-203983
Capital Investment / Paid-up Capital :	Rs. 7743.800 Millions
CIN No.: [Company Identification No.]	U15114DL1995PLC203983
TAN No.: [Tax Deduction & Collection Account No.]	DELH08002B
PAN No.: [Permanent Account No.]	AAACH1765Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Selling of Motor Cars, Parts and Related Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 59600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “Honda Motor Company Limited, Japan”. It is a well-established and reputed company having satisfactory track record. The company is continuously incurring losses from its operations. However, general financial position of the company is good. Directors are well-experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payments are reported to be usually correct. In view of strong holding, 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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 31-03-2012.

LOCATIONS

Registered Office :	409, Tower B, DLF Commercial Complex, Jasola, New Delhi – 110025, India
Tel. No.:	91-11-41680694
Fax No.:	91-11-41680696
E-Mail :	apsingh@hondacarindia.com klgupta@hondacarindia.com sajalgoyal@hondacarindia.com
Website :	https://www.hondacarindia.com
Factory/ Zonal Office North & East Zone :	Plot No. A-1, Sector 40/ 41, Surajpur-Kasna Road, Greater Noida Industrial Development Area, District Gautam Budh Nagar - 201306, Uttar Pradesh, India
Tel. No.:	91-120-2341313/ 1321/ 1327/ 1801/ 1806
Fax No.:	91-120-2341261
Zonal Office – Mumbai :	Zonal Office – West, D-126, TTC Industrial Area, MIDC Shiravane, Nerul,Thane-Belapur Road, Navi Mumbai - 400706, Maharashtra, India
Tel. No.:	91-22-67895000/ 5001/ 5002/ 5003
Zonal Office – Chennai :	Technical Support Centre, Old No 26/ New No46, Opposite ICICI Bank, Ambattur Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu, India
Tel. No.:	91-44-42083774/ 75/ 76/ 78

DIRECTORS

AS ON 05.08.2013

Name :

Hironori Kanayama

Designation :

Nominee director

Address :

House No. C-495, First Floor, Defence Colony, New Delhi - 110024, India

Date of Birth/Age :

07.12.1953

Qualification :

Bachelor of Arts (Literature)

Date of Appointment :

31.08.2012

DIN No.:

05235686

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	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	31/08/2012	01/04/2012	-	Active	NO
2	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	31/08/2012	01/04/2012	01/04/2013	Active	NO
3	U35912HR2001PTC034649	HONDA MOTORCYCLE AND SCOOTER INDIA PRIVATE LIMITED	Director	31/08/2012	01/04/2012	01/04/2013	Active	NO
4	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	31/08/2012	01/04/2012	-	Active	NO

Name :

Hiroyuki Kachi

Designation :

Whole-time director

Address :

House No. E-123, The Icon DLF City, Phase-V, Gurgaon – 122009, Haryana, India

Date of Birth/Age :

08.07.1963

Date of Appointment :

05.08.2013

DIN No.:

06542784

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	Company/ LLP Status	Defaulting status
1	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Whole-time director	05/08/2013	01/04/2013	Active	NO

Name :

Mr. Raman Kumar Sharma

Designation :

Nominee director

Address :

House No. 70, Sector- 9, Faridabad- 121006, Haryana, India

Date of Birth/Age :

12.01.1956

Qualification :

B-Tech from IIT Kharagpur, PGDBM f rom I IM - Ahmedabad

Date of Appointment :

08.09.2007

Voter ID No.:

HR0652630082

DIN No.:

01381382

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	Company/ LLP Status	Defaulting status
1	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	08/09/2007	01/04/2007	Active	NO
2	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	19/08/2010	01/04/2010	Active	NO

Name :

Shigeru Yamazaki

Designation :

Nominee director

Address :

House No. D-30, First Floor, Pamposh Enclave, Greater Kailash - I, New Delhi- 110048, India

Date of Birth/Age :

07.01.1958

Qualification :

Bachelor of Economics

Date of Appointment :

31.08.2012

DIN No.:

05237170

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	Company/ LLP Status	Defaulting status
1	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	31/08/2012	01/04/2012	Active	NO

Name :

Jiro Morisawa

Designation :

Nominee director

Address :

House No. R-143, Ground Floor, Greater Kailash - I, New Delhi - 110048, India

Date of Birth/Age :

24.02.1967

Qualification :

Bachelor of Economics

Date of Appointment :

10.08.2011

DIN No.:

03493736

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	Company/ LLP Status	Defaulting status
1	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Director	10/08/2011	01/04/2011	Active	NO
2	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	10/08/2011	01/04/2011	Active	NO

Name :

Yoshiyuki Matsumoto

Designation :

Director

Address :

Hotel Le Meridien Windsor Place, Janpath, New Delhi – 110001, India

Date of Birth/Age :

14.01.1958

Date of Appointment :

05.08.2013

DIN No.:

06542714

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	Company/ LLP Status	Defaulting status
1	L40103DL2004PLC203950	HONDA SIEL POWER PRODUCTS LIMITED	Director	05/08/2013	01/04/2013	Active	NO
2	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Director	05/08/2013	01/04/2013	Active	NO
3	U35912HR2001PTC034649	HONDA MOTORCYCLE AND SCOOTER INDIA PVT LTD	Director	05/08/2013	01/04/2013	Active	NO
4	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Managing director	05/08/2013	01/04/2013	Active	NO

Name :

Toshio Sugiyama

Designation :

Nominee director

Address :

House No. S-358, First Floor, Greater Kailash - II, New Delhi- 110048, India

Date of Birth/Age :

12.03.1955

Qualification :

Management Engineering

Date of Appointment :

10.08.2011

DIN No.:

03504548

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	Company/ LLP Status	Defaulting status
1	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	10/08/2011	01/04/2011	Active	NO
2	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Whole-time director	01/04/2013	01/04/2011	Active	NO

Name :

Koichiro Kageta

Designation :

Nominee director

Address :

House No. S-545, First Floor, Greater Kailash-II, New Delhi - 110048, India

Date of Birth/Age :

05.08.1963

Qualification :

Bachelor of Society Studies, Social Science

Date of Appointment :

10.08.2011

DIN No.:

03493628

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	Company/ LLP Status	Defaulting status
1	U15114DL1995PLC203983	HONDA CARS INDIA LIMITED	Nominee director	10/08/2011	01/04/2011	Active	NO
2	U34102UP2006FTC032370	HONDA MOTOR INDIA PRIVATE LIMITED	Whole-time director	10/08/2011	01/04/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Arun Pratap Singh
Designation :	Secretary
Address :	614, Mahagun Maple, Sector- 50, Noida - 201301, Uttar Pradesh, India
Date of Birth/Age :	01.02.1972
Date of Appointment :	20.08.2007
PAN No.:	ANNPS4540D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 05.08.2013

Names of Shareholders	No. of Shares
Honda Motors Company Limited, Japan	569973747
Asian Honda Motor Company Limited, Thailand	204402515
Honda Motor Company Limited, Japan Jointly with Shigeru Yamazaki	1
Honda Motor Company Limited, Japan Jointly with Hiroyuki Kachi	1
Honda Motor Company Limited, Japan Jointly with Jiro Morisawa	1
Honda Motor Company Limited, Japan Jointly with Hironori Kanayama	1
Honda Motor Company Limited, Japan Jointly with Koichiro Kageta	1
Honda Motor Company Limited, Japan Jointly with Toshio Sugiyama	1
Total	774376268

AS ON 05.08.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Motor Cars, Parts and Related Services.

Products/ Services :

ITC Code No.	Product Descriptions
87032391	Motor Cars

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· JP Morgan Chase Bank, N.A. J.P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400098, Maharashtra, India · Citi Bank N.A. 3rd Floor, Jeevan Bharti Building, 124, Connaught Circus, New Delhi - 110001, Delhi, India · Mizuho Corporate Bank Limited 4th Floor, East Tower, Sood Tower, 25, Barakhamba Road, New Delhi - 110001, India · Kotak Mahindra Bank Punjab National Bank ICICI Bank Limited HDFC Bank Limited Bank of Tokyo-Mitsubishi UFJ Limited State Bank of India Deutsche Bank AG Punjab National Bank, Custom

Banking Relations :	--
Auditors :
Name :	A. F. Ferguson and Company Chartered Accountants
Address :	9, SC India House, Kasturba Gandhi Marg, New Delhi, India
Income-tax PAN of auditor or auditor's firm :	AABFA5846M
Fellow Subsidiary company :	· American Honda Motor Company, Inc. Asian Honda Motor Company, Limited Honda Access Asia & Oceania Company Limited Honda Auto parts Manufacturing (M) Sdn. Bhd. Honda Automobile (Thailand) Company Limited Honda Cars Philippines, Inc. Yutaka Autoparts India Private Limited Honda Express Logistics India Private Limited Honda Kaihatsu Company Limited Honda Malaysia Sdn. Bhd. Honda Motor China Company Limited Honda Motor India Private Limited Honda Motorcycle & Scooter India Private Limited Honda Parts Manufacturing Corporation Honda R & D Asia Pacific Company Limited Honda Trading Philippines Ecozone Corp Honda R&D Company Limited Honda R&D (India) Private Limited [U51202HR2003PTC035129] Honda Siel Power Products Limited Honda Trading (Asia) Company Limited [formerly known as Honda Trading (Thailand) Company Limited] Honda Trading China Company Limited Honda Trading Corporation India Private Limited Honda Trading Corporation Honda Trading Europe Limited Honda Access Corporation Limited Honda Trading South China Company Limited PT. Honda Prospect Motor PT. Honda Precision Parts Manufacturing Yachiyo India Manufacturing Private Limited [U34300RJ2008FTC026306] Wuhan Honda Trading Company Limited Honda Engineering Asian Company Limited Honda of the U.K. Mfg Limited Honda Motor Europe Limited Honda Automoveis Do Brasil Limited Honda Motor Southern Africa (Pty) Limited Honda Kaihatsu India Hospitality Private Limited Honda Trading Philippines Ecozone Corporation Shanghai Honda Trading Company Limited Taiwan Honda Trading Company Limited Honda Engineering Company Limited Honda Taiwan Motor Company Limited Honda Vietnam Company Limited
Holding company :	Honda Motor Company Limited, Japan
Joint venture :	· Rajasthan Prime Steel Processing Center Private Limited Bestex MM India Private Limited Global Auto Parts Alliance India Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000,000	Equity Shares	Rs. 10/- each	Rs. 10000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
774,376,268	Equity Shares	Rs. 10/- each	Rs. 7743.800 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	7743.800	5699.700	3600.000
(b) Reserves & Surplus	7167.000	7308.300	3452.800
(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)	14910.800	13008.000	7052.800
(3) Non-Current Liabilities
(a) long-term borrowings	3111.700	2533.800	2626.600
(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	141.700	84.500	96.200
Total Non-current Liabilities (3)	3253.400	2618.300	2722.800
(4) Current Liabilities
(a) Short term borrowings	6560.500	3852.400	9279.000
(b) Trade payables	9416.900	8514.100	8009.800
(c) Other current liabilities	4656.600	1991.100	1376.100
(d) Short-term provisions	31.100	31.800	63.100
Total Current Liabilities (4)	20665.100	14389.400	18728.000
TOTAL	38829.300	30015.700	28503.600
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	22080.200	16574.900	9611.600
(ii) Intangible Assets	265.400	64.700	53.500
(iii) Capital work-in-progress	4665.000	602.300	4538.800
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	52.100	117.900	230.600
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2982.600	1553.200	2420.300
(e) Other Non-current assets	75.600	84.400	99.300
Total Non-Current Assets	30120.900	18997.400	16954.100
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3648.500	5249.300	6948.400
(c) Trade receivables	763.600	657.800	2935.100
(d) Cash and cash equivalents	2724.800	3279.900	141.900
(e) Short-term loans and advances	1486.600	1590.300	1519.400
(f) Other current assets	84.900	241.000	4.700
Total Current Assets	8708.400	11018.300	11549.500
TOTAL	38829.300	30015.700	28503.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	39599.100	32484.600	40010.300
		Other Income	764.700	617.300	230.900
		TOTAL (A)	40363.800	33101.900	40241.200
Less	EXPENSES
		Cost of materials consumed	36291.600	26255.000	31022.300
		Purchases of stock-in-trade	0.000	579.800	1518.900
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	968.500	3119.100	(1821.100)
		Employee benefit expense	2611.900	1911.800	1610.900
		Other expenses	8964.300	6633.300	5538.000
		Exceptional items	0.000	(2422.000)	0.000
		TOTAL (B)	48836.300	36077.000	37869.000
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(8472.500)	(2975.100)	2372.200
Less	FINANCIAL EXPENSES (D)		758.800	843.100	439.100
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(9231.300)	(3818.200)	1933.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1865.900	2226.600	2728.600
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(11097.200)	(6044.800)	(795.500)
Less	TAX (H)		0.000	0.000	1332.900
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(11097.200)	(6044.800)	(2128.400)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2592.000)	3452.800	5581.100
	BALANCE CARRIED TO THE B/S		(13689.200)	(2592.000)	3452.800
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	4582.500	1556.200	169.000
	IMPORTS
		Raw material and components	10066.800	10650.100	11471.300
		Cars, parts and others	161.400	469.900	806.900
		Capital Goods	4342.900	631.500	19240.600
	TOTAL IMPORTS		14571.100	11751.500	31518.800
	Earnings/ (Loss) Per Share (Rs.)		(19.20)	(16.40)	(5.90)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(27.49)	(18.26)	(5.29)
Net Profit Margin (PBT/Sales)	(%)	(28.02)	(18.61)	(1.99)
Return on Total Assets (PBT/Total Assets}	(%)	(32.53)	(20.63)	(3.35)
Return on Investment (ROI) (PBT/Networth)		(0.74)	(0.46)	(0.11)
Debt Equity Ratio (Total Debt/Networth)		0.65	0.49	1.69
Current Ratio (Current Asset/Current Liability)		0.42	0.77	0.62

LOCAL AGENCY FURTHER INFORMATION

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10465515	18/11/2013	1,100,000,000.00	JP MORGAN CHASE BANK, N.A.	J.P. MORGAN TOWER, OFF C.S.T. ROAD, KALINA, SANTACRUZ (EAST), MUMBAI - 400098, MAHARASHTRA, INDIA	B91687871
2	10453799	23/09/2013	2,481,600,000.00	CITI BANK N.A.	3RD FLOOR, JEEVAN BHARTI BUILDING, 124, CONNAUGHT CIRCUS, NEW DELHI - 110001, INDIA	B87021671
3	10167250	22/06/2009	505,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	A66043043
4	10164581	10/01/2011 *	750,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B03931565
5	10133078	13/10/2010 *	2,000,000,000.00	BANK OF TOKYO MITSUBISHI UFJ LIMITED	3, JEEVAN VIHAR BUILDING, PARLIAMENT STREET, NEW DELHI - 110001, INDIA	A98010960
6	10111742	18/03/2011 *	2,000,000,000.00	MIZUHO CORPORATE BANK LIMITED	4TH FLOOR, EAST TOWER, SOOD TOWER, 25, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA	B09571217
7	10101870	24/03/2009 *	750,000,000.00	KOTAK MAHINDRA BANK LIMITED	7TH FLOOR, AMBADEEP BUILDING, KASTURBA GANDHI MARG, NEW DELHI - 110001, INDIA	A59947283
8	90275459	10/04/2003 *	68,500,000.00	PUNJAB NATIONAL BANK	7; BHIKAJI CAMA PLACE, NEW DELHI - 110066, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	1764.100	1045.200
Foreign currency term loans from banks	1347.600	471.200
Foreign currency term loans from others	0.000	1017.400
SHORT TERM BORROWINGS
Foreign currency term loans from banks	6220.900	3498.300
Loans repayable on demand from banks	339.600	354.100
Total	9672.200	6386.200
SHORT TERM BORROWINGS Short term loans are repayable within one year from the year end and carry interest at LIBOR plus interest rate spread of 0.50% per annum to 0.60% per annum. Cash credits and other demand loans are repayable on demand and carry interest rate ranging from 9.25% to 14% per annum.

CHANGE OF ADDRESS:

The registered office of the company has been shifted from Crowne Plaza Today New Delhi Okhla, Plot No. 1, Community Centre, Okhla Phase – I, New Delhi - 110020, India to the present w.e.f.15.10.2013.

CORPORATE INFORMATION

Subject is a public company incorporated under the provisions of the Companies Act, 1956 on December 5, 1995. The name of the Company has been changed from Honda Siel Cars India Limited to Honda Cars India Limited w.e.f. September 6, 2012. The Company is engaged in the business of manufacturing and selling of motor cars, parts and related services.

THE YEAR IN RETROSPECT

During the year 2012-13, Indian economy remained sluggish. Slowdown persisted, as mining and manufacturing activity stalled, agriculture output was affected by temporal and spatial deficiency in rains and services sector witnessed moderation. Growth has been hobbled by a combination of factors, most notably the investment cycle downturn, structural bottlenecks, shortage of power, coal and natural gas, governance concerns, domestic policy uncertainties and slackening of external demand. The Rupee falling to an all-time low added to the Country’s woes. Unsurprisingly then, the GDP growth rate slowed markedly during the year 2012-13 and is estimated to be 5 %and the growth of manufacturing sector is estimated at 1%.

The average headline wholesale price inflation during 2012-13 at 7.4% was significantly lower than the 9% recorded in the preceding year. The year-end inflation turned out to be even lower at 6%. However, consumer price inflation stays in the double digits, reflecting substantially food inflation pressures.

The year 2012-13 was a challenging year for the Indian automobile industry, with the passenger car volumes posting de-growth of 6.7%, as against a growth of 2.19% during the year 2011-12. However, with soaring sales of the UVs and SUVs, the passenger vehicle industry could manage a growth of 2% - the lowest in almost a decade. The multiple factors which contributed to this included an overall slowing economy, high finance rates and a persistently depreciating Rupee, leading to an increase in the import and production costs. The sharp rise in price of Petrol during the year affected the sentiments in the market and led to a significant fall in demand for petrol cars. The overall consumer sentiment was low, with even high discount levels failing to bring any cheer to the Industry. Only the SUV and UV segment was an exception with growth of about 52%, which brought some excitement to an otherwise dull market.

COMPANY’S OPERATIONS

While the Indian auto industry was struggling in 2012-13, the Company posted an overall growth of about 40%, with sales touching 76,105 units during the year 2012-13. The excellent growth is attributed to the good performance of ‘Honda Brio’ and ‘Honda City’. The Company was successful in establishing the ‘Honda Brio’ in the market and also at the same time continued its focus on the ‘Honda City’ with minimal spends on advertising and discounts. However, the bottom line continued to be under stress and worsened further on account of adverse exchange rates vis-à-vis major currencies including Japanese Yen, US Dollar, etc.

The Company is now further gearing up for the Indian market as they move to the next level. With a proposed robust product line up with relevant fuel options and advanced engine technologies, they are confident that their new offerings will not just meet, but exceed the expectations of their customers.

They have started their journey in the diesel segment with the launch of Honda Amaze in April 2013, and further plan to introduce diesel variants in all the new models.

With their entry in the diesel segment, they have a great opportunity to increase their business, because the universe they operate in will increase from 10% currently to nearly 50% of the total passenger vehicle market in the next few years.

The Company has also announced fresh investments of INR 2,500 crore to expand its total installed production capacity in India from the current 120,000 to 240,000 units per annum by the next financial year.

EXPORTS

During the year 2012-13, the Company took a significant step to expand exports and began export of ‘Honda Brio’ to South Africa. This is a big milestone for the Company and is also a testimony to the quality of the ‘Honda Brio’ made in its Plant.

The Company exported 2,622 Nos. of Brio, City, Jazz and Accord cars and also the Spare Parts and Components.

ACHIEVEMENTS / AWARDS

1. The Honda City and Honda Brio scored high on quality and won top ranks in JD Power Initial Quality Study. While, Honda City achieved the distinction of being ranked No.1 for the 10th year in a row and overall for the 12th time, Honda Brio has been ranked No.1 in the premium hatchback category in the very first year of its evaluation.

2. The Company also attained the No.1 rank in Sales Satisfaction Index for the first time in over a decade.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
(a) Claims against the Company not acknowledged as debts:-
In respect of - excise duty	1691.300	48.100
- customs duty	281.500	281.500
- service tax	50.000	222.900
- income tax	12357.200	4030.000
- sales/trade tax	220.300	450.100
- entry tax	24.100	21.000
- others	195.800	202.200
(b) During the financial year 2010-11, the Company had received orders under section 201 of the Income tax Act, 1961 demanding tax of Rs. 34259.300 millions and interest thereon of Rs. 13131.300 millions in aggregate from the Income-tax authorities for the financial years 2004-05 to 2009-10 alleging non-deduction of withholding tax on imports/ reimbursements of expenses from / to its associated enterprises. The Company had also received show cause notices, aggregating to Rs. 34259.300 millions, as to why penalty for non-deduction of withholding tax be not levied under section 271C of the Income- tax Act,1961 on the above matter. The Hon'ble Allahabad High Court, while disposing the Company's writ petitions, vide its order dated May 30, 2011, had set aside the above orders and the penalty notices on ground of natural justice. However, the tax authorities were given the liberty to examine the issue afresh and pass orders in accordance with law. During the year, the Company has received fresh show cause notices for the financial years 2004-05 to 2011-12 from Income-tax authorities to re-examine the issue afresh. Upto 31 March 2013, no order has been passed under section 201 of the Income Tax Act. Liability arising in the above matters in future, if any, is not ascertainable. (c) The Company has received various show cause notices for sales / trade tax matters asking for explanations as to why certain amounts (which in view of the management cannot be reliably estimated) should not be paid. As these notices are in the nature of explanations required, the Company does not consider these to constitute a liability of any kind. (d) The Customs and Central Excise Settlement Commission (CCESC) had accepted the Company's contention and settled the customs duty liabilities on import of drawings under its Technical Collaboration Agreement with Honda Motor Company Limited, Japan at Rs. 11.700 millions, (previous year Rs. 11.700 millions), (and provided for in the accounts in previous years) and granted immunity from penalty as against the demands by customs authorities of Rs. 281.500 millions (including penalty of Rs. 140.700 millions) [ Previous year Rs. 281.500 millions ( including penalty of Rs. 140.700 millions)]. The customs authorities had preferred writ petitions in the High Court, challenging the order of CCESC. During the previous year, the Hon'ble High Court of Delhi vide its order dated December 23, 2011, has remanded the matter back to the CCESC to re-examine the issue of valuation of drawings and certain other aspects. The Company has filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court of India against the said order which is pending disposal.

FIXED ASSETS:

· Land

Buildings

Plant and equipment

Factory equipments

Furniture and fixtures

Vehicles

Office equipment

Computer equipments

Other equipments

Leasehold improvements

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. 61.90
UK Pound	1	Rs. 102.74
Euro	1	Rs. 85.16

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.