MIRA INFORM REPORT

Report Date :

30.01.2014

IDENTIFICATION DETAILS

Name :	GREAVES COTTON LIMITED
Registered Office :	Industry Manor, Off Appasahab Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.03.1922
Com. Reg. No.:	11-000987
Capital Investment / Paid-up Capital :	Rs. 488.400 Millions
CIN No.: [Company Identification No.]	L99999MH1922PLC000987
TAN No.: [Tax Deduction & Collection Account No.]	MUMG07833A
PAN No.: [Permanent Account No.]	AAACG2062M
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Engines and Contraction Equipment and Trader of Power Tillers, Motor Graders etc.
No. of Employees :	2248 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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

Maximum Credit Limit :	USD 29000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. There appears dip in profit of the company during the financial year 2013. However, net worth of the company seems to be sound and healthy. The performance capability seems to be decent. Directors are reported to be experienced and respectable businessmen. 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long term issues rating: “AA”
Rating Explanation	High degree of safety and very low credit risk.
Date	19.02.2013

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 31-03-2012.

INFORMATION DECLINED BY

Management non-cooperative (Tel. No. 91-22-24397575)

LOCATIONS

Registered / Corporate Office :	Industry Manor, Off Appasahab Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-24397575 / 24365510
Fax No.:	91-22-24377730 / 24379555
E-Mail :	rahul.rao@greavescotton.com jyoti.kabra@greavescotton.com investorservices@greavescotton.com
Website :	http://www.greavescotton.com
Diesel Engine Unit- I:	Bombay Poona Road, Chinchwad, Pune - 411 019, Maharashtra, India
Light Engines Unit –I:	J-2, MIDC Industrial Area, Chikalthana, Aurangabad - 431 210, India
Light Engines Unit –II:	Plot No.72, Sipcot Industrial, Complex, Ranipet - 632 403, India
Light Engines Unit –IV:	J-2A, MIDC Industrial Area, Chikalthana, Aurangabad - 431 210, India
Light Engine Unit –V:	A-1/3, Shendra Five Star, Industrial Area, Shendra Aurangabad - 431 001, India
Genset Unit:	Gat No.357/17/1, 357/16/2 & 357/16/3, Kharabwadi, Chakan Dist., Khed, Pune, Maharashtra, India
Petrol Engines Unit:	F62 & 63, Sipcot Industrial Complex, Gummidipoondi, Chennai - 601 201, Tamil Nadu, India
Heavy Engineering Unit I & II:	D- 18, Sipcot Industrial Complex, Gummidipoondi, Chennai - 601 201, Tamil Nadu, India
Heavy Engineering Unit IV:	A-12 (a), Sipcot Industrial Complex, Gummidipoondi, Chennai - 601 201, Tamil Nadu, India
Regional Office:	Corporate Park - II, 4th Floor, Sion Trombay Road, Chembur, Mumbai - 400 071, Maharashtra, India
Tel. No.:	91-22-25264646
Fax No.:	91-22-25262622
Email:	manish.kulkarni@greavescotton.com
Western Region:	Located at: Ahmedabad
Northern Region:	Located at: New Delhi
Eastern Region:	Located at: Kolkata Jharkhand
Southern Region:	Located at: · Bangalore · Chennai · Cochin · Hyderabad

DIRECTORS

As on: 31.03.2013

Name :	Mr. Karan Thapar
Designation :	Chairman
Name :	Mr. Sunil Pahilajani
Designation :	Managing Director and CEO (Effective November 5, 2011)
Name :	Mr. Vijay Rai
Designation :	Director
Name :	Mr. Suresh N. Talwar
Designation :	Director
Name :	Mr. Vikram Tandon
Designation :	Director
Name :	Mr. Sukh Dev Nayyar
Designation :	Director
Name :	Dr. Clive Hickman
Designation :	Director

KEY EXECUTIVES

Name :	Mrs. Monica Chopra
Designation :	Company Secretary & Executive Vice President - Legal
Name :	Mr. Sunil Pahilajani
Designation :	Managing Director & Chief Executive Officer
Name :	Mr. Ashok Kumar Sonthalia
Designation :	Chief Financial Officer
Name :	Mr. Anil Gole
Designation :	Chief Human Resources Officer
Name :	Mr. Sastabhavan Jyotindran Kutty
Designation :	Chief Technology Officer & Head - Strategy
Name :	Mr. Sanjiv Kumar
Designation :	Chief Executive Officer (Automotive Engine Business)
Name :	C.M. Ashok Muni
Designation :	Chief Executive Officer (Farm Equipment Business)
Name :	Mr. Ramachandran Nandagopal
Designation :	Chief Executive Officer (Construction Equipment)
Name :	Mr. Prakash Bhalekar
Designation :	Chief Executive Officer (Engine Component Technologies, Industrial Engine Business and Auxiliary Power Business)
Name :	Mr. Vinay Khanolkar
Designation :	Chief Executive Officer (Aftermarket)
Name :	Mr. Sachin Parab
Designation :	Chief Executive Officer, International Business

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1000	0.00
Bodies Corporate	125920566	51.56
Sub Total	125921566	51.56
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	125921566	51.56
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	39507064	16.18
Financial Institutions / Banks	47148	0.02
Insurance Companies	28693066	11.75
Foreign Institutional Investors	20557694	8.42
Sub Total	88804972	36.36
(2) Non-Institutions
Bodies Corporate	5979575	2.45
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	18855645	7.72
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	2498273	1.02
Any Others (Specify)	2146764	0.88
Overseas Corporate Bodies	775000	0.32
Non Resident Indians	1311669	0.54
Trusts	41445	0.02
Directors & their Relatives & Friends	18650	0.01
Sub Total	29480257	12.07
Total Public shareholding (B)	118285229	48.44
Total (A)+(B)	244206795	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)	244206795	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Engines and Contraction Equipment and Trader of Power Tillers, Motor Graders etc.

GENERAL INFORMATION

No. of Employees :

2248 (Approximately)

Bankers :

· State Bank of India

· Bank of India

· ICICI Bank

· HDFC Bank

· Royal Bank of Scotland N.V.

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Short term borrowings
Cash Credit / Short Term Finance from Banks *	22.000	0.000
Total	22.000	0.000
Note: * Cash Credit and Short Term Finance from Banks are secured by hypothecation of all stock-in-trade, spares, tools and book debts, present and future, of the Company. The charges on these assets also extend to letters of credit and bank guarantees upto Rs. 448.700 millions (Previous Year Rs. 278.500 millions) and Rs.50.400 millions (Previous Year Rs. 42.100 millions) respectively.

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Cost Auditors:
Name:	Dhananjay V. Joshi and Associates Chartered Accountants
Internal Auditors:
Name:	Aneja Associates Chartered Accountants
Subsidiary of Greaves Cotton Netherlands B.V. :	· Ascot International FZC
Wholly Owned Subsidiary of Greaves Leasing Finance Limited :	· Dee Greaves Limited
Wholly Owned Subsidiary :	· Greaves Auto Limited · Greaves Cotton Netherlands B.V. · Greaves Leasing Finance Limited
Wholly Owned Subsidiary of Greaves Cotton Netherlands B.V. :	· Greaves Farymann Diesel GmbH
Associate Company:	· Bharat Starch Products Limited · DBH Consulting Limited · DBH Global Holdings Limited · DBH International Private Limited · DBH Investments Private Limited · DBH Stephan Limited · English Indian Clays Limited · Karun Carpets Private Limited · Pembril Industrial and Engineering Company Private Limited · Premium Stephan B.V., Netherlands · Premium Transmission Cooperatie UA · Premium Transmission Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.2/- each	Rs. 500.000 Millions
2500000	Preference Shares	Rs.100/- each	Rs. 250.000 Millions
	Total		Rs. 750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
244206795	Equity Shares	Rs.2/- each	Rs.488.400 Millions

Shares in the Company held by each shareholder holding more than 5% shares

Name of the shareholder	31.03.2013
	Number of shares	Percentage of shares held ( % )
DBH International Private Limited	98537502	40.35
Reliance Capital Trustee Company Limited	14376342	5.89
Bharat Starch Products Limited	13775865	5.64
Karun Carpets Private Limited	13607199	5.57

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	488.400	488.400	488.400
(b) Reserves & Surplus	6932.000	6005.300	4772.100
(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)	7420.400	6493.700	5260.500
(3) Non-Current Liabilities
(a) long-term borrowings	0.400	1.700	3.600
(b) Deferred tax liabilities (Net)	347.200	299.600	263.600
(c) Other long term liabilities	37.800	30.500	32.400
(d) long-term provisions	131.700	104.800	246.500
Total Non-current Liabilities (3)	517.100	436.600	546.100
(4) Current Liabilities
(a) Short term borrowings	22.000	200.000	22.900
(b) Trade payables	2329.200	1931.600	2141.000
(c) Other current liabilities	630.500	809.700	1049.600
(d) Short-term provisions	883.400	1058.500	788.100
Total Current Liabilities (4)	3865.100	3999.800	4001.600
TOTAL	11802.600	10930.100	9808.200
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3602.900	3209.400	2581.500
(ii) Intangible Assets	77.500	50.100	59.800
(iii) Capital work-in-progress	53.300	167.800	92.900
(iv) Intangible assets under development	26.900	35.600	0.000
(b) Non-current Investments	253.500	528.800	668.400
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	211.500	231.500	222.200
(e) Other Non-current assets	14.100	13.700	13.700
Total Non-Current Assets	4239.700	4236.900	3638.500
(2) Current assets
(a) Current investments	685.400	585.400	170.000
(b) Inventories	1609.900	1699.700	1868.400
(c) Trade receivables	3750.800	2572.900	2580.900
(d) Cash and cash equivalents	413.500	702.500	601.800
(e) Short-term loans and advances	1101.000	1127.800	935.400
(f) Other current assets	2.300	4.900	13.200
Total Current Assets	7562.900	6693.200	6169.700
TOTAL	11802.600	10930.100	9808.200

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations		18732.900	17534.400	12521.700
		Other Income		155.500	59.800	123.800
		TOTAL		18888.400	17594.200	12645.500
Less	EXPENSES
		Cost of material consumed		12608.000	12008.700	8167.400
		Purchase of stock-in-trade		389.100	469.800	580.900
		Changes in inventories of finished goods, work-in-progress and stock-in-trade		131.800	(151.700)	(62.800)
		Employee benefit Expenses		1479.200	1275.100	831.500
		Other expenses		1701.900	1567.300	1071.400
		TOTAL		16310.000	15169.200	10588.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			2578.400	2425.000	2057.100
Less	FINANCIAL EXPENSES			11.200	34.800	10.500
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			2567.200	2390.200	2046.600
Less/ Add	DEPRECIATION/ AMORTISATION			389.600	317.300	209.800
	PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX			2177.600	2072.900	1836.800
Add	EXCEPTIONAL ITEMS			(176.100)	432.900	0.000
	PROFIT BEFORE TAX			2001.500	2505.800	1836.800
Less	TAX			621.900	650.900	564.000
	PROFIT AFTER TAX			1379.600	1854.900	1272.800
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			2924.800	1940.900	1342.500
Less	APPROPRIATIONS
		Transfer to General Reserve		250.000	250.000	250.000
		Tax on Dividend		452.200	621.000	424.400
	BALANCE CARRIED TO THE B/S			3602.200	2924.800	1940.900
	EARNINGS IN FOREIGN CURRENCY
			Export of goods on F.O.B. basis ( including foreign branch)	596.900	522.500	192.100
			Direct Sales Compensation (including foreign branch)	0.000	4.300	6.400
	TOTAL EARNINGS			596.900	526.800	198.500
	IMPORTS
			Raw Materials	435.800	202.000	116.800
			Components and Spare Parts	312.600	679.200	1005.100
			Capital Goods	89.300	143.700	90.400
	TOTAL IMPORTS			837.700	1024.900	1212.300
	Earnings Per Share (Rs.)			5.65	7.60	5.21

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	7.31	10.54	10.07
Net Profit Margin (PBT/Sales)	(%)	10.69	14.30	14.67
Return on Total Assets (PBT/Total Assets}	(%)	17.45	24.57	20.30
Return on Investment (ROI) (PBT/Networth)		0.27	0.39	0.35
Debt Equity Ratio (Total Debt/Networth)		0.01	0.03	0.01
Current Ratio (Current Asset/Current Liability)		1.96	1.67	1.54

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

Lodging No.:-

ITXAL/2050/2009

Filing Date:-

20/08/2009

Reg. No.:-

ITXA/4224/2009

Reg. Date:-

18/12/2009

Petitioner:-	THE COMMISSIONER OF INCOME TAX 6 MUMBAI	Respondent:-	GREAVES COTTON LIMITED
Petn.Adv.:-	SURESH KUMAR (0)
District:-	MUMBAI

Bench:-	DIVISION
Status:-	Admitted(Unready)	Category:-	TAX APPEALS
Last Date:-	26/07/2011	Stage:-	FOR ADMISSION - AFTER NOTICE (HIGH ON BOARD)
Last Coram:-	HON'BLE SHRI JUSTICE J.P. DEVADHAR HON'BLE SHRI JUSTICE A.A. SAYED

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Interest-free Sales Tax Loan and Special Incentive Loan	0.400	1.700
Short term borrowings
Short Term Loan from Others	0.000	200.000
Total	0.400	201.700

REVIEW OF OPERATIONS

The financial year began on a challenging tone. High inflation, low industrial output, high rates of interest plagued the country’s economy which witnessed the lowest growth in the decade of 5% in the financial year 2012-13 (FY13). This affected the performance of almost all business segments in which the Company operates.

Weathering tough times, the Company registered Net Revenue from operations of Rs.1,8732.900 millions in FY13 as against Rs.1,7534.400 millions in 2011-12 (FY12), clocking a rise of 6.8%. FY13 saw the Engine Segment record a 7% increase in revenue while the Infrastructure Equipment Segment revenue grew by 3%.

Net Profit for the year was Rs.1379.600 millions as against Rs.185.49 Crore in FY12. The Company had an advantage of exceptional income of Rs.410.900 millions in FY12 and disadvantage of exceptional loss of Rs.166.100 millions in FY13.

During the year, due to the growth-oriented strategy of the Company which laid special emphasis on operational efficiency and cost optimisation, the Net Profit margin (excluding exceptional items) was marginally higher at 8.3% for FY13 as against 8.2% in FY12.

In its endeavour to engineer growth, the Company has been treading on a multi-dimensional growth strategy, which is reflected in the performance and highlights of its different businesses. The outlook of each business has been discussed in detail in the ‘Management Discussion and Analysis’ annexed to this Report.

SUBSIDIARY COMPANIES

GREAVES LEASING FINANCE LIMITED (GLFL)

GLFL is a wholly owned subsidiary of the Company. GLFL is a non-banking finance company engaged in leasing and finance activities confined only to the Greaves Group. It reported total Revenue of Rs.44.800 millions and Profit after Tax of Rs.29.100 millions for FY13. During the year , GLFL, with the approval of the Hon’ble Bombay High Court, reduced the Paid-up Preference Share Capital to the extent of Rs.135.000 millions, which was in excess of wants of the Company, by paying off / returning the same to the holders of the said Preference Shares.

GREAVES AUTO LIMITED (GAL)

GAL is a wholly owned subsidiary of the Company. GAL is yet to commence any business activity. GAL earned marginal profit on account of interest income, net of expenses.

DEE GREAVES LIMITED (DGL)

DGL is a wholly owned subsidiary of GLFL. During FY13, it did not do any business. It earned a marginal profit representing interest income, net of expenses.

GREAVES COTTON NETHERLANDS B.V. (GCN), NETHERLANDS

GCN is a wholly owned subsidiary of the Company functioning as its investment arm.

During the year, the Company invested in GCN a sum of € 22,000 in the Ordinary Share Capital and extended a credit facility of € 0.4 Million to help meet its operating cash flow requirements. As on 31st March, 2013, the Company has invested € 4.91 Million in GCN. For the year ended 31st March, 2013, GCN reported a loss of € 4.75 Million primarily on account of impairment of its investment in Greaves Farymann Diesel GmbH of € 4.71 Million. Correspondingly, the Company has impaired its investment in GCN to the extent of Rs.283.600 millions.

GREAVES FARYMANN DIESEL GMBH (GFD), GERMANY

GFD is a wholly owned subsidiary of GCN. GFD is engaged in manufacturing and marketing of single cylinder diesel engines and parts in Europe.

For the financial year ended 31st March, 2013, GFD reported with a total Income of € 4.800 Million and a Loss of € 0.720 Million.

There was an impairment in the books of GCN in respect of GCN’s investment in GFD to the extent of € 4.710 Million.

ASCOT INTERNATIONAL FZC (ASCOT), UNITED ARAB EMIRATES

Ascot is a subsidiary of GCN (90%) and the Company (10%).

Ascot offers aftersales services in the Middle East and North African Countries for various products of the Company and is of strategic importance for the Company’s International Business. Ascot recorded a Revenue of AED 9.14 Million and incurred a Profit of AED 0.03 Million for the year ended 31st March, 2013.

All the above subsidiary companies are non-material, non-listed subsidiary companies as defined under Clause 49 of the Listing Agreement with the Stock Exchanges.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

The US economy is expected to grow by 1.9% in 2013 and further strengthen to 3% in 2014. However, short-term risk is foreseen in the Euro-zone, with growth in the region forecast at -0.3% in 2013, and only 1.1% in 2014. Notwithstanding this scenario, the emerging markets and developing economies are expected to grow by 5.3% in 2013. At the consolidated global level, it is expected that the positives will strengthen in the second half of 2013 and further into 2014. In its mid-April forecast, the International Monetary Fund projects global growth of 3.3% for the year 2013 and expects it to touch 4% in 2014.

INDIAN ECONOMY

However, the last quarter of the financial year 2012-13 (FY13) ushered in a ray of hope for revival. Economists predict that the worst is behind then and in the future, the country will again experience better growth rates. The ability to tackle structural challenges will play an important role in shaping the growth of the coming year. Forecast for the GDP growth ranges between 5.7%-6% in FY14.

COMPANY OVERVIEW

To achieve this, in addition to building organizational capabilities, the Company indexed a three-pronged growth strategy:

Expanding and upgrading the product portfolio

Strengthening market reach

Widening geographic footprints

The Company believes this growth oriented strategy will enable it:

To drive operational efficiency and deliver cost optimization

To become more customer-centric with higher levels of customer service

To be more responsive and agile in taking on the challenges prevailing in an uncertain environment

The Company continued to implement the engineered roadmap to growth with alacrity and this was visible in the year’s performance. Weathering tough times, for the financial year 2012-13 (FY13), the Company registered Net Sales of Rs.18733.000 Millions as against Rs.1,7534.000 Millions, clocking a rise of 6.8%.

Net Profit for FY13 was at Rs.1380.000 Millions as against Rs.1855.000 Millions for FY12. The Company had an advantage of exceptional income of Rs.410.900 Millions in FY12. And this year, a disadvantage of exceptional loss of Rs.166.100 Millions.

The growth-oriented strategy laid special emphasis on operational efficiency and cost optimization and the Net Profit margin (excluding exceptional items) was marginally higher at 8.3% for FY13 as against 8.2% in FY12.

FY13 saw the Engine Segment record a 7% increase in revenue while the Infrastructure Equipment Segment revenue grew 3%.

AUTOMOTIVE ENGINES BUSINESS

INDUSTRY OVERVIEW

Segment-wise performance in the CV segment was characterized by a wide dispersion in growth rates. While growth slowed and even contracted in a few cases in the Small Commercial Vehicles (SCVs) segment, it was over the high base of the past three years.

The 3 wheeler diesel segment reported a 4% year-on-year volume growth in FY 2012-13, mainly led by a healthy 8% year-on-year growth in domestic passenger carriers. Sales of domestic 3 wheeler goods carrier continued to be impacted by high financing costs and weak retail sales resulting in sales contracting by 5%.

Notwithstanding the moderation in growth over a period in FY13, the demand for LCVs is expected to remain buoyant over the medium term as it would need to match the extent of capacity added by Medium and Heavy Commercial Vehicles (M and HCVs) over the past few years. It is expected that the growth will be led by SCVs. The modest initial investment (sub one Lakh is the estimated equity contribution for entry level trucks) make these vehicles attractive, as payback is faster and it offers employment to First Time Users. Moreover, these vehicles are preferred due to stringent restrictions on entry of heavy-duty trucks and expanding city limits. These factors support the demand momentum for SCVs in future. Industry Research* forecasts a 13-14% CAGR over FYs 14-16.

BUSINESS OVERVIEW

During the year under consideration, the Automotive Engines Business was recognized for its Excellence in Delivery with an award from the reputed auto major, Tata Motors, at the Tata Motors Vendors' Meet 2012. By ramping up volumes to meet the demand for engines for the 4 wheeler SCVs, viz., Ace Zip and Magic Iris, the Automotive Engines Business responded efficiently to the requirements from Tata Motors. The award is a recognition of the Company’s manufacturing prowess and competence in delivery, while adhering to stringent timelines.

The Automotive Engines Business entered into a 7-year, Long Term Supply Agreement with Atul Auto Limited for supply of diesel engines for their 3 wheeler diesel vehicles. Currently, Greaves engines power Atul Smart, Atul Shakti and Atul Gem vehicles plying across the country.

The Automotive Engines Business continued its R and D efforts to develop higher capacity engines as well as engines that use alternative fuels. The Company continued to work towards achieving BS-IV emission compliance.

The entry into the Mini Tractor market reinforced our competitive position by developing applications beyond the 4 wheeler automobile sector. The single cylinder Greaves G 600 engine has been installed in 11 HP mini tractor and the market response has been positive.

OUTLOOK

While the performance of the Indian economy in the last quarter of FY13 has evoked optimism, the Company remains cautious in its outlook and foresees cautious demand, due to high interest rates which directly impacts consumer sentiment. The Company’s results for FY13 are an endorsement of the right strategic measures undertaken during the year. These measures will play a pivotal role in defining the long-term growth potential of the business. Moving forward, the business will continue to remain focused on expanding the client base in the 4 wheeler SCV segment and the 3 wheeler segment, while enhancing the product portfolio.

AUXILIARY POWER BUSINESS

INDUSTRY OVERVIEW

The power capacity addition on an all India basis during FY13 stood at 20,620 MW (excluding renewal energy based), of which 91% was coal-based. However, the overall power deficits remained significant across the country as is evident from the peak deficit of 9% in FY13 with some states, especially North and South, having significantly higher level of peak deficits between 10% and 25%. As against the energy demand growth at 6-8% per annum, power shortages have been continuing on account of factors such as shortfall in capacity addition, increasing fuel shortages affecting the energy availability, lack of adequate transmission capacity in southern region, as well as, the financial constraints in obtaining costlier sources of power by many state owned utilities.

Given the unreliability of grid power, Genets have emerged as the viable option for people who seek stable and reliable alternative power. The economic slowdown, high interest rates, poor liquidity and diffident business and consumer sentiments created roadblocks to business growth through the year. The Auxiliary Power industry also continued to be challenged by the intense competition and resultant price wars to off-load stock and improve plant utilization.

BUSINESS OVERVIEW

The Auxiliary Power Business continued to focus on enhancing the product portfolio and plans are on the anvil to introduce a range of CPCB (Central Pollution Control Board) compliant smaller Genets. The deregulation of diesel prices will gradually change the way diesel power is used as customers will increasingly opt for hybridization, alternate fuels and other cost reduction strategies.

Efforts continued to leverage Information Technology (IT) to further strengthen the supply chain, while concurrently strengthening the service backbone.

OUTLOOK

The need for reliable power will continue to drive the business and, in the medium term, demand for diesel gensets is expected to continue coming in from sectors such as retail, hospitality, healthcare, real estate, among others. The slow and steady revival in the economy, easing of interest rates and likely growth of infrastructure sector will act as a positive growth driver for the Auxiliary Power Business in the future. Going forward, with a focussed approach to engineer growth, the momentum for the Auxiliary Power Business is expected to grow across targeted product segments and markets though margins remain under pressure due to tough competition.

FARM EQUIPMENT BUSINESS

INDUSTRY OVERVIEW

To ease the labour shortage and higher cost woes of farmers, several state governments have launched campaigns to promote the use of mechanized equipment. Subsidy is being offered under the centrally-sponsored scheme Rashtriya Krishi Vikas Yojana (RKVY) to farmers.

Looking at the large-sized opportunity, many MNCs are foraying into the Farm Equipment Business in India through the import route. However, developing larger distribution networks to service the interiors remains a challenge and serves as an entry level barrier, favouring well established players like their Company.

BUSINESS OVERVIEW

Growth in the Farm Equipment Business was impacted due to poor monsoon and delays in disbursal of subsidies. Weakening demand affected the overall industry business negatively. The Farm Equipment Business made marginal progress and improved its market share, on the back of an expanded portfolio of products. While this progress is better than the industry trend, a discernible improvement from the demand slump situation is yet to be seen.

OUTLOOK

Continued Government support and planned intervention, increasing labour costs and their shortage will play a vital role in sustaining industry demand. Growth in the segment will also be interlinked to the prevailing interest rate regime which continues to be a deterrent to demand.

The Farm Equipment Business believes products that enhance farm productivity, especially Diesel and Electrical Pump sets, Mini Tractors and Light Agricultural Equipment, will attract demand as the trend for mechanization takes further roots in the country, subject to a normal monsoon. In the short run, the forecasts of a good monsoon in FY14 will lead to a revival in the sector after deficient rainfall last year dented demand.

The Farm Equipment Business will continue to explore ways to expand its product offerings both through in-house initiatives and through relevant networks in the future.

The overall business strategy is to defend the Company’s market share in the Farm Equipment Business, where it already has a reasonably good slice of the market.

The Farm Equipment Business remains cautiously optimistic about its performance in FY14 and also in the long run.

INDUSTRIAL ENGINES BUSINESS

INDUSTRY OVERVIEW

The slowdown in the economy, which challenged various industries led to businesses delaying their capital expenditure plans and also led to a deceleration of demand in the Industrial Engines Business. High interest rates, as well as delays in clearances for projects, further impeded project implementation.

BUSINESS OVERVIEW

The Company’s Industrial Engines Business develops specifically customised products for various industries, including construction, marine, fire control, mining, material handling, rail cars and power.

The Company’s engines have been well received in fire-fighting pumps and marine applications. As fire safety guidelines have come into increased prominence due to the stringent regulations and implementation by various statutory bodies, the business is expected to expand in the future. Despite the overall negative environment, the business, with its quality products and strong technical understanding, succeeded in recording a marginal growth in FY13. However, growth was moderate due to slowdown in capex cycle in the industry.

OUTLOOK

As the Company is a relatively new entrant in this business space where a large potential exists, the Industrial Engines Business has a promising outlook, though the pace of revival of the economy will determine the degree of growth, going ahead.

The Company is committed to increasing the R and D and marketing budgets to garner a bigger share of the pie.

CONSTRUCTION EQUIPMENT BUSINESS

INDUSTRY OVERVIEW

There is a direct correlation between the demand for construction equipment and growth in infrastructure development. The dampened economic scenario with higher interest rates and slowdown in key sectors impacted growth in the construction equipment space, including infrastructure development, mining, real estate. Other factors that led to slowdown in the progress of construction activity during the year included stringent monetary conditions, policy inertia and stagnant infrastructure activities.

BUSINESS OVERVIEW

Though the Company’s Construction Equipment Business continued to be challenged by prevailing difficult times, it eventually showed signs of recovery towards the latter part of FY13. The approach of expanding the product range by adding relevant products has been a key to this recovery. The technology transfer agreement with Samil Industries Ltd., Korea, enabled the Construction Equipment Business to upgrade and launch new products like the S-Valve Concrete Pump to address product gaps in concrete segment.

While the construction equipment market was impacted by a slowdown in the infrastructure segment, the Company’s Construction Equipment Business gained market share in the second half of FY13 through aggressive marketing initiatives and the launch of new products. The Road Equipment business, in particular, witnessed marginal improvement in the last few months of FY13 and this momentum is likely to be sustained.

OUTLOOK

India will need to invest over US$ 1 trillion in infrastructure during the 12th Five Year Plan period (2012-17), according to the estimates of the Planning Commission. This is nearly double the sum invested during the 11th Plan. The initial phase of the 12th Plan period has seen several structural problems holding back the infrastructure sector which need to be resolved expeditiously. Specifically, quick corrective actions are required in the areas of power distribution, fuel linkages, land acquisition, regulatory clearance, among others. At the same time, the reform measures need to be supported by adequate credit growth and funding for long-term infrastructure projects. An upturn in the infrastructure cycle and favourable macroeconomic indicators will eventually push the demand for infrastructure equipment.

By ushering in best-in-class technology, the Company’s endeavour is to build a robust contemporary product basket and emerge as a one-stop solution for infrastructure equipment. The initiatives undertaken on product portfolio development in Concrete Equipment space will enable the Construction Equipment Business to take advantage of the opportunities in future, even if the overall industry sentiment is not favourable. In the long run, the strong thrust provided by the Government to the construction and infrastructure sector will be the catalyst to growth.

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER 2013

(Rs. In Millions)

Sr. No.		Quarter ended		Year ended
	Particulars	30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
	Gross Sales	4973.200	4578.300	9551.500
	Less: Excise Duty	519.800	469.500	989.300
1	Income from Operations
	a) Net Sales	4453.400	4108.800	8562.200
	b) Other Operating Income	27.100	14.000	41.100
	Total Income from Operations (net)	4480.500	4122.800	8603.300
2	Expenses
	a) Cost of Materials Consumed	2983.200	2714.900	5698.100
	b) Purchase of Stock-in-Trade	197.300	161.700	359.00
	c) Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(73.200)	(50.100)	(123.300)
	d) Employee Benefits Expense	394.700	401.300	796.000
	e) Depreciation	104.100	102.300	206.400
	f) Other expenses	474.200	400.200	874.400
	Total Expenses	4080.300	3730.300	7810.600
3	Profit from Operations before Other Income, Finance Costs & Exceptional Items (1-2)	400.200	392.500	792.700
4	Other Income	64.200	60.200	124.400
5	Profit from ordinary activities before finance costs & Exceptional Items (3+4)	464.400	452.700	917.100
6	Finance Costs	12.100	5.600	17.700
7	Profit from ordinary activities after finance costs but before Exceptional Items (5-6)	452.300	447.100	899.400
8	Exceptional Items (Refer Note 1)	(400.500)	--	(400.500)
9	Profit from Ordinary Activities before Tax (7+8)	51.800	447.100	498.900
10	Tax Expense
	a) Current Tax	125.000	140.000	265.000
	b) Tax adjustment in respect of earlier years	--	--	--
	c) Deferred Tax	6.600	(10.500)	(3.900)
11	Net Profit from Ordinary Activities after Tax (9-10)	(79.800)	317.600	237.800
12	Extraordinary Item (net of tax expense)	--	--	--
13	Net Profit for the period (11-12)	(79.800)	317.600	237.800
14	Paid-up equity share capital (face value of Rs. 2/- each)	488.400	488.400	488.400
15	Reserves excluding revaluation reserves	--	--	--
16	Earning Per Share (Not Annualised) (Rs.)
	- Basic	(0.33)	1.30	0.97
	- Diluted	(0.33)	1.30	0.97
A	Particulars of Shareholding
1	Public Shareholding
	- Number of Shares	118285229	118285229	118285229
	- Percentage of Shareholding	48.44	48.44	48.44
2	Promoter and Promoter Group Shareholding a) Pledged / Encumbered - Number of Shares - Percentage of Shares b) Non-encumbered
	- Number of Shares	125921566	125921566	125921566
	- Percentage of Shares ( as a % of the total shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
	- Percentage of Shares ( as a % of the total share capital of the Company)	51.56	51.56	51.56
B	Investor Complaints Pending at the beginning of the quarter Received during the quarter Disposed off during the quarter Remaining unresolved at the end of the quarter	NIL 4 4 NIL

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER 2013

Particulars	Quarter ended		Year ended
	30.09.2013 (Unaudited)	30.06.2013 (Unaudited)	30.09.2013 (Unaudited)
1. Segment Revenue
a. Engines	3992.400	3526.700	7519.100
b. Infrastructure Equipment	278.800	345.700	624.500
c. Other	216.900	251.200	468.100
Total	4488.100	4123.600	8611.700
Less: Inter – segment revenue	7.600	8.000	8.400
Net Sales/Income from operations	4480.500	4122.800	8603.300
2. Segment Results
Profit/ (loss) before tax and interest
a. Engines	690.700	547.900	1238.600
b. Infrastructure Equipment	(76.500)	(30.900)	(107.400)
c. Other	(6.200)	31.900	25.700
Total	608.000	548.900	1156.900
Less: Unallocable Expenditure
Interest and Finance charges	12.100	5.600	17.700
Other expenditure (net of other income)	143.600	96.200	239.800
Exceptional Items	400.500	--	400.500
Profit Before Tax	51.800	447.100	498.900
3. Capital Employed
(Segment Assets – Segment Liabilities)
a. Engines	5055.400	4858.800	5055.400
b. Infrastructure Equipment	1458.200	1369.800	1458.200
c. Other	(56.200)	(8.000)	(56.200)
Total Capital Employed in segment	6457.400	6227.800	6457.400
Add: Unallocable Corporate Assets Including Investments net of Liabilities	1114.800	1510.100	1114.800
Total Capital Employed in the Company	7572.200	7737.900	7572.200

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in Millions)

Particulars		30.09.2013
A. EQUITY AND LIABILITIES		Unaudited
1. Shareholders Funds
a] Share Capital		488.400
b] Reserves and Surplus		7083.800
Sub-total – Shareholders’ funds		7572.200
2. Non-current Liabilities
a] Long term Borrowings		313.900
b] Deferred Tax Liabilities		343.300
c] Other current liabilities		39.900
d] Long term provisions		168.800
Sub-total - Non-current Liabilities		865.900
3. Current Liabilities
a] Short term Borrowings		--
b] Trade Payables		2451.000
c] Other Current Liabilities		836.400
d] Short Term Provision		416.000
Sub-total - Current Liabilities		3703.400
TOTAL - EQUITY AND LIABILITIES		12141.500
B ASSETS
1. Non-current assets
a] Fixed assets		3783.700
b] Non-current investment		244.700
c] long Term loans and Advances		292.600
d] Other non-current assets		16.200
Sub-total – Non- current assets		4337.200
2. CURRENT ASSETS
	Current Investments	427.800
	Inventories	1879.800
	Trade Receivables	3999.800
	Cash & Bank Balances	594.000
	Short Term loans and advances	897.600
	Other Current Assets	5.300
Sub-total – Current Assets		7804.300
TOTAL - ASSETS		12141.500

Notes:

Exceptional items constitute:

(Rs. in Millions)

	Quarter ended 30.09.2013	Quarter ended 30.06.2013	Year ended 30.09.2013
A) Provision for diminution in value of investment B) Employee separation compensation	(386.600) (13.900)	-- --	(386.600) (13.900)
Total	(400.500)	--	(400.500)

Figures for the previous periods have been regrouped/reclassified, wherever necessary, to make them comparable with the figures of the current period.

The above financial results were subjected to limited review by the statutory auditors. There are no qualifications in the limited review report in respect of the above financial results.

The above financial results were reviewed by the Audit Committee on 30th October 2013 and then approved by the Board of Directors at its meeting held on 1st November 2013.

FIXED ASSETS:

Ø Freehold Land

Ø Leasehold Land

Ø Freehold Building

Ø Leasehold Building

Ø Plant and Machinery

Ø Office Equipment

Ø Furniture and Fixture

Ø Vehicles

Ø Technical Know-how

Ø Computer software

PRESS RELEASES

AUGMENTS PRODUCT PORTFOLIO TO ADDRESS INFRASTRUCTURE MARKET

Bengaluru, November 21, 2013: Greaves Construction Equipment Business, part of Greaves Cotton Limited, one of India's leading engineering companies, today launched the first of its 37 metre 3 axle truck mounted boom pump - GCP3709Z. The 4 arm Z fold type boom offers increased flexibility and maneuverability in areas where space is a constraint. Best suited for mega projects such as airports, metro projects, mono-rails, flyovers and high rise infrastructural and residential projects, Greaves GCP3709Z provides superior productivity and pumping efficiency thereby ensuring faster completion of projects, reduced down-time and higher output.

With the Z-fold section of the boom, operators have a myriad of options for placement while shooting concrete up to 37 meters vertically, and 33 meters horizontally. GCP3709Z has a folding height of 3.95 meters for low overhead conditions and a slewing range of 370 degrees to suit demanding job sites. The pipeline used is of DN -125 mm diameter. GCP3709Z comes with a friendly radio remote controlled operating system along with options to switch from slow to fast boom operations.

Speaking at the launch, Mr. Sunil Pahilajani, MD & CEO, said, "Excon is one of the best platforms for us to showcase our contemporary array of products and services. With the addition of the 37 metre boom pump to our product portfolio, amongst other new products; we are now able to offer customers technologically driven products backed by hassle-free after-market support."

"Keeping in line with our product philosophy of introducing products that address specific market demands, the boom pump is designed to provide functional superiority and ease of use", said Mr. R. Nandagopal, CEO, Construction Equipment Business. He added, "Our endevour is offer complete infrastructure solutions. Addressing product gaps in both the concreting and compaction segment we have added the GCP3709Z boom pump and Nikko Asphalt Plant and Mitsubishi Motor Grader respectively. Complementing our wide range of products is our countrywide extensive service network which caters to discerning customers anytime, anywhere."

POSTS QUARTERLY SALES OF RS 448 CRORE FOR Q2 FY13-14, PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX STANDS AT RS 450.000 MILLIONS

Mumbai, November 01, 2013: Greaves Cotton Limited, one of India's leading engineering companies reported revenue at Rs. 4480.000 millions for the quarter ended 30th September 2013 as against Rs. 4510.000 millions for the corresponding quarter last year. EBITDA was Rs. 500.000 millions as against Rs. 580.000 millions, for the same period last year. The Company have divested out of the step down subsidiary in Germany and have provided for diminution in the value of this investments to the extent of Rs. 390.000 millions which resulted in negative PAT.  Profit / (Loss) After Tax (PAT) amounted to Rs. (80.000) millions as against Rs. 340.000 millions, for the same period last year.

Commenting on the results, Mr. Sunil Pahilajani, MD & CEO, said, “The 3 Wheeler Automobile market, the construction equipment market and the pump market is currently going through a challenging business scenario. We have successfully been able to consolidate our market presence, maintained market shares and in some segments even increased market share. Greaves has been able to maintain top line by focusing on product development and superior customer satisfaction. The focused efforts and several initiatives have resulted in reducing costs and in maintaining profitability of the businesses. International business has grown significantly and it is heartening to note that our strategy of widening global foot print across strategic markets of Middle East, East Africa and South East Asia have yielded positive response.

The profits for this quarter have been affected with our divestment in Greaves Farymann Diesel GmbH. With global business sentiments at an all-time low, and Greaves Farymann Diesel GmbH not performing to expectations, the strategic business decision to exit was taken in the long term interest of Greaves Cotton Limited.

Mr. Pahilajani added, “This quarter witnessed the addition of TVS Motors to our client roster for supplies to TVS King DS. The initial launch in Kerala, Southern India has been positive. As part of growing the Aftermarket and strengthening distribution, Greaves has consciously increased customer touch points across the country to deliver increased customer delight.”

Auxiliary Power Business recently unveiled contemporary power solutions that address sub 20 KVA; 160-250 KVA and higher end 500 KVA CPCB 2 ready gensets and engines segments, respectively.

The Company has successfully developed both 3 Wheeler and 4 Wheeler Engines, which meet BS IV norms ahead of time. This technology is low cost and hence is commercially cost effective for OEMs. This latest technology coupled with its low cost has now opened up new frontiers of opportunities both for our OEMs as well for us for entering into new geographies. This technology is going to be relevant for a long time ahead and demonstrates our ability in meeting the technology requirements of the market.

ADDS NEW PRODUCTS TO AUGMENT PRODUCT PORTFOLIO….

Bengaluru, October 19, 2013: Greaves Auxiliary Power Business, part of Greaves Cotton Limited, one of India's leading engineering companies, today launched its fuel efficient, smartly designed auxiliary power solutions, compliant with latest emission norms. Mr. Karan Thapar, Chairman, Greaves Cotton Limited, unveiled the new products at Sheraton, Bengaluru. Designed to deliver uninterrupted auxiliary power under challenging conditions, the three new offerings address sub 20 KVA; 160-250 KVA and higher end 500 KVA CPCB 2 ready gensets and engines segments, respectively.

The newly launched ergonomically designed gensets are powered by 4 stroke, water cooled diesel engines. Low operating cost, plateau honed wet liner for low lube oil consumption, highly efficient cooling system and low vibrations make it an ideal choice for value - conscious consumers. These gensets come with best-in-class acoustic enclosures which are insulated with fire retardant foam so as to comply with the 75 dBA at 1 mt sound levels specified by the Ministry of Environment and Forests.

Greaves provides single window accessibility to all customers by manufacturing engines and providing the complete factory made canopised gensets, all under one roof. Taking customer delight a step forward, a robust and strong network of Greaves service and spares ensures 24 x 7 service anytime, anywhere.

Speaking at the launch, Mr. Sunil Pahilajani, MD & CEO, Greaves Cotton Limited said, “The launch of these contemporary need-of the-hour auxiliary power offerings is a testimony of our keen understanding of customer needs combined with our focus on product innovation and technology. It personifies our commitment of providing discerning power consumers a smart, eco-friendly, cost effective product backed by a strong after-market support.”

"With a huge power deficit in India, auxiliary power solutions need to be fuel-efficient, rugged and versatile. Our endevour is to roll our products that are best suited to perform under demanding power conditions. Fuel efficient features and advanced ergonomic design enable our products to be technologically advanced with functional superiority", said Mr. Prakash Bhalekar, CEO, Auxiliary Power Business. He added, "Our well established pan India distributor and dealer network complemented with our deep rooted Aftermarket support lends itself to easy accessibility for customer engagement. We are hopeful that these solutions will help make us a preferred choice amongst consumers seeking technology led affordable solutions."

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 records 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. 62.20
UK Pound	1	Rs. 103.11
Euro	1	Rs. 84.97

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		62

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.