MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	CEAT LIMITED
Registered Office :	463, Dr. Annie Besant Road, Worli, Mumbai – 400030, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	10.03.1958
Com. Reg. No.:	11-011041
Capital Investment / Paid-up Capital :	Rs.359.600 Millions
CIN No.: [Company Identification No.]	L25100MH1958PLC011041
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of automotive tyres, tubes and flaps.
No. of Employees :	5000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 and reputed company having fine track record. The rating reflects company’s established market position in tyres segment supported by healthy financial risk profile, adequate liquidity position and fair profitability levels of the company. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facility=A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	25.03.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facility=A1
Rating Explanation	Strong degree of safety and lowest credit risk.
Date	25.03.2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Ms. Priti Arjun Wadkar
Designation :	Senior Manager Treasury Department
Contact No.:	91-11-66616142
Date :	16.07.2014

LOCATIONS

Registered Office :	463, Dr. Annie Besant Road, Worli, Mumbai – 400 030, Maharashtra, India
Tel. No.:	91-22-24930621/ 24616054/ 25640461/ 25660461/ 63/ 66670200/ 61073500
Fax No.:	91-22-24606039/ 25640301/ 25663964/ 66670299/ 24975798
E-Mail :	shaileshjoshi@ceatltd.com iikhan@ceatltd.com investors@ceatltd.com hns.rajpoot@ceat.in shruti.joshi@ceat.in priti.arjunwadkar@ceat.in
Website :	http://www.ceattyres.com http://www.kecrpg.com http://www.ceat.in
Area :	10000 sq. ft.
Location :	Owned
Factory 1 :	Village Road, Bhandup, Mumbai – 400 078, Maharashtra, India
Factory 2 :	82, MIDC Industrial Estate, Satpur, Nasik – 422 007, Maharashtra, India
Factory 3 :	Village Gate Muvala, Halol, Panchmahal - 389350, Gujarat India
Regional Offices:	Located At: · Chandigarh · New Delhi · Jalandhar · Faridabad · Rohtak · Meerut · Varansi · Kanpur · Jaipur · Jodhpur · New Agra · Ludhiana
Sales Office :	Located At: · Chhattisgarh · Madhya Pradesh · Bihar · Delhi · Uttar Pradesh · Karnataka · Andhra Pradesh · Maharashtra · Goa · Gujarat

NOTE: Temporary premises as their registered office is under Renovation: - DGP House, Old Prabhadevi Road, Behind Begal Chemical, Worli, Mumbai – 400025, Maharashtra, India (Rented)

DIRECTORS

As on: 31.03.2013

Name :	Mr. H. V. Goenka
Designation :	Chairman
Name :	Mr. Anant Vardhan Goenka
Designation :	Managing Director
Name :	Mr. Arnab Banerjee
Designation :	Executive Director – Operations
Name :	Mr. Vinay Bansal
Designation :	Director
Name :	Mr. A. C. Choksey
Designation :	Director
Name :	Mr. Paras K. Chowdhary
Designation :	Director
Name :	Mr. S. Doreswamy
Designation :	Director
Name :	Mr. Mahesh S. Gupta
Designation :	Director
Name :	Mr. Haigreve Khaitan
Designation :	Director
Name :	Mr. Bansi S. Mehta
Designation :	Director
Name :	Mr. Hari L. Mundra
Designation :	Director
Name :	Mr. K. R. Podar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. H. N. Singh Rajpoot
Designation :	Company Secretary
Address :	463, Dr. Annie Besant Road, Worli, Mumbai-400 030, Maharashtra, India
Audit Committee :	Mr. Hari L. Mundra - Chairman Mr. S. Doreswamy - Member Mr. Mahesh S. Gupta – Member
Shareholders/ Investors Grievance Committee :	Mr. Mahesh S. Gupta - Chairman Mr. Paras K. Chowdhary - Member Mr. S. Doreswamy – Member

SHAREHOLDING PATTERN

As on: 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	148118	0.41
Bodies Corporate	18603272	51.74
Sub Total	18751390	52.15
(2) Foreign
Bodies Corporate	1782348	4.96
Sub Total	1782348	4.96
Total shareholding of Promoter and Promoter Group (A)	20533738	57.11
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1422059	3.96
Financial Institutions / Banks	14462	0.04
Central Government / State Government(s)	9700	0.03
Insurance Companies	810986	2.26
Foreign Institutional Investors	4227703	11.76
Sub Total	6484910	18.04
(2) Non-Institutions
Bodies Corporate	2591624	7.21
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4528124	12.59
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1659755	4.62
Any Others (Specify)	157559	0.44
Trusts	3604	0.01
Directors & their Relatives & Friends	13000	0.04
Foreign Corporate Bodies	37	0.00
Unclaimed Suspense A/c	140918	0.39
Sub Total	8937062	24.86
Total Public shareholding (B)	15421972	42.89
Total (A)+(B)	35955710	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)	35955710	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of automotive tyres, tubes and flaps.

Products :

Item Code No. (ITC Code)	4011
Product Description	Automotive Tyres
Item Code No. (ITC Code)	4012
Product Description	Automotive Flaps
Item Code No. (ITC Code)	4013
Product Description	Automotive Tubes

Brand Names :

CEAT, CEAT SECURA, CEAT ENDURA, CEAT MAESTRO, etc.

Exports :

Products :

Automotive Tyres and Flaps

Countries :

· Middle East

· Africa

Imports :

Products :

Raw Material

Countries :

· Malaysia

· Korea

· Taiwan

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

Reliance Industries Limited

Customers :

· Tata Motors

· Mahindra and Mahindra

No. of Employees :

5000 (Approximately)

Bankers :

· Axis Bank Limited

· Bank of Baroda

· Bank of India

· Corporation Bank

· EXIM Bank

· ICICI Bank Limited

· IDBI Bank Limited

· State Bank of India

· UCO Bank

· Yes Bank Limited

Facilities :

Fund and Non Fund= Rs. 12000.000 Million (From Bank of India)

(Rs. In Millions)

Secured Loan	As on 31.03.2013
LONG TERM BORROWINGS
Term Loans
Indian Rupee Loan from Banks
ICICI Bank Limited	910.000
ICICI Bank Limited	350.000
Bank of India	491.358
Corporation Bank	0.000
IDBI Bank Limited	125.648
Bank of Baroda	0.000
Export Import Bank of India	244.988
Foreign Currency Loan from Banks
Bank of Baroda	257.955
Export Import Bank of India	298.568
ICICI Bank Limited - ECB Loan	282.734
Buyer’s Credit	67.047
SHORT TERM BORROWINGS
Cash Credit Facilities from Banks	330.952
Export Packing Credit	720.765
Buyer's Credit	2741.549
Total	6821.564

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Associates LLP Chartered Accountants
Address :	14^th Floor, The Ruby 29 Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India
Tel No.:	91-22-61920000
Fax No.:	91-22-61921000
Legal Adviser:	1. Mulla and Mulla and Craige Chartered Accountants 2. Blunt and Caroe Chartered Accountants
Related parties where control exists :	· Associated CEAT Holdings Company Private Limited (ACHL) (Subsidiary Company) · CEAT Bangladesh Limited (CEAT Bangladesh) (Subsidiary Company) · CEAT-Kelani Holdings Company Private Limited (CKHL) (Joint Venture of ACHL ) · Associated CEAT Private Limited (ACPL) (Subsidiary of CKHL) · CEAT-Kelani International Tyres Private Limited, (CKITL) (Subsidiary of CKHL) · CEAT Kelani Radials Limited (CKRL) (Subsidiary of CKHL) · Rado Tyres Limited (Associate Company)

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.359.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	359.600	342.435	342.435
(b) Reserves & Surplus	9311.400	7087.676	6184.604
(c) Money received against share warrants	0.000	36.397	36.397
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	9671.000	7466.508	6563.436
(3) Non-Current Liabilities
(a) long-term borrowings	4224.900	4216.689	5793.423
(b) Deferred tax liabilities (Net)	1091.000	745.207	334.284
(c) Other long term liabilities	14.200	14.220	14.220
(d) long-term provisions	202.100	120.069	80.418
Total Non-current Liabilities (3)	5532.200	5096.185	6222.345
(4) Current Liabilities
(a) Short term borrowings	5747.800	3821.581	5011.587
(b) Trade payables	6692.600	7760.612	6443.290
(c) Other current liabilities	5469.100	5762.251	5776.650
(d) Short-term provisions	664.000	654.359	209.184
Total Current Liabilities (4)	18573.500	17998.803	17440.711
TOTAL	33776.700	30561.496	30226.492
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	15044.400	14419.224	14595.374
(ii) Intangible Assets	0.000	610.080	645.269
(iii) Capital work-in-progress	0.000	99.354	134.159
(iv) Intangible assets under development	0.000	0.000	0.200
(b) Non-current Investments	1243.400	447.084	441.632
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	752.900	1182.919	452.755
(e) Other Non-current assets	100.400	105.728	113.473
Total Non-Current Assets	17141.100	16864.389	16382.862
(2) Current assets
(a) Current investments	0.000	0.000	303.196
(b) Inventories	7182.800	5314.401	5796.059
(c) Trade receivables	7158.400	6357.459	6142.276
(d) Cash and cash equivalents	1029.600	813.501	371.534
(e) Short-term loans and advances	932.100	1048.570	1122.763
(f) Other current assets	332.700	163.176	107.802
Total Current Assets	16635.600	13697.107	13843.630
TOTAL	33776.700	30561.496	30226.492

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue From Operations	53548.100	48814.447	44757.318
		Other Income	205.400	214.759	287.098
		TOTAL (A)	53753.500	49029.206	45044.416
Less	EXPENSES
		Cost of Materials Consumed	34513.900	33432.626	32716.056
		Purchases of Stock-in-trade	1170.800	687.093	516.073
		Changes in Inventories of finished goods, work-in-progress and Stock-in-trade	(1012.300)	(341.931)	258.996
		Employee Benefits Expense	2890.700	2690.974	2165.281
		Other Expenses	9800.800	8100.745	6632.875
		Exceptional Item	100.400	276.956	31.564
		TOTAL (B)	47464.300	44846.463	42320.845
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6289.200	4182.743	2723.571
Less	FINANCIAL EXPENSES (D)		1691.600	1943.764	1921.615
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4597.600	2238.979	801.956
Less	DEPRECIATION/ AMORTISATION (F)		826.300	781.648	704.741
	PROFIT BEFORE TAX (E-F) (G)		3771.300	1457.331	97.215
Less	TAX (H)		1233.500	393.816	21.830
	PROFIT AFTER TAX (G-H) (I)		2537.800	1063.515	75.385
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3328.717	2535.455	2499.868
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares		136.974	34.244
		Corporate Tax on Proposed Dividend		23.279	5.554
		Transfer to General Reserve		110.000	0.000
	BALANCE CARRIED TO THE B/S		NA	3328.717	2535.455
	EARNINGS IN FOREIGN CURRENCY
		Export Sales calculated on FOB basis		10899.587	9927.588
		Royalty		36.984	36.264
		Dividend		56.847	64.641
		Technical Development Charges		0.000	4.500
	TOTAL EARNINGS		NA	10993.418	10032.993
	IMPORTS
		Raw Materials		13489.009	13874.172
		Traded Goods		264.068	137.452
		Components & Spares		68.156	27.913
		Capital Goods		156.069	770.488
	TOTAL IMPORTS		NA	13977.302	14810.025
	Earnings Per Share (Rs.)
	Basic		71.66	31.06	2.20
	Diluted		71.24	30.44	2.20

NOTES:

1. The above results were reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on April 29, 2014.

a) The Company had introduced a Voluntary Retirement Scheme (VRS) for its employees. The compensation in respect of employees who opted for VRS aggregates to Rs.68.919 Millions (previous year Rs.1.366 Millions) which is disclosed as an Exceptional Item.

b) The Company's Plant at Bhandup, Mumbai, had an incident of fire at its Raw Material Store on February 23, 2014. Fixed assets of written down value of Rs.23.087 Millions and stock of Rs.253.816 Millions, were destroyed in the fire. In terms of the Company's insurance coverage, management is confident of recovering an amount of Rs.255.640 Millions from the insurance company. An amount of Rs. 31.474 Millions being the net unrecoverable amount, including incidental expenses incurred, is disclosed as an exceptional item.

c) During the previous year, the Company changed its method of recognizing provision for warranty from actual claim basis to expected cost, based on past trend. The provision for earlier years amounting to Rs.1.404 Millions was disclosed as an exceptional item.

2. Tax expenses for the year ended March 31, 2013 includes a prior period credit of Rs.0.710 Millions.

3. During the previous quarter, the Company has made an additional investment of Rs.195.000 Millions in CEAT Bangladesh Limited, as share application money for 24.100 Lac shares of face value of Taka 10 each, for which the shares have been allotted in the quarter ended March 31, 2014.

4. During the year, pursuant to Order of Board for Industrial and Financial Reconstruction (BIFR), Rado Tyres Limited (Rado), has allotted 75,00,000 Equity shares of Rs. 4/-each fully paid up to the Company on conversion of loan given to it by the company. The company's stake in Rado Tyres Limited now stands increased to 58.56% and accordingly Rado Tyres Limited has become a subsidiary of the company w.e.f. September 27, 2013.

5. The Company has only one business segment "Tyres".

6. The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year up to March 31, 2014 and the unaudited published year-to-date figures up to December 31, 2013, being the date of the end of the third quarter of the financial year which were subject to limited review.

7. The Board of Directors have recommended a Dividend of Rs. 10/- per share of face of Rs. 10/- each.

8. The figures have been regrouped / rearranged wherever considered necessary to conform to current period classification and grouping.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	4.72	2.17	0.17
Net Profit Margin (PBT/Sales)	(%)	7.04	2.99	0.22
Return on Total Assets (PBT/Total Assets}	(%)	11.59	4.86	0.33
Return on Investment (ROI) (PBT/Networth)		0.39	0.20	0.01
Debt Equity Ratio (Total Debt /Networth)		1.03	1.08	1.65
Current Ratio (Current Asset/Current Liability)		0.90	0.76	0.79

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	342.435	342.435	359.600
Reserves & Surplus	6184.604	7087.676	9311.400
Net worth	6527.039	7430.111	9671.000
long-term borrowings	5793.423	4216.689	4224.900
Short term borrowings	5011.587	3821.581	5747.800
Total borrowings	10805.010	8038.270	9972.700
Debt/Equity ratio	1.655	1.082	1.031

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	44,757.318	48,814.447	53,548.100
		9.065	9.697

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	44,757.318	48,814.447	53,548.100
Profit	75.385	1,063.515	2,537.800
	0.17%	2.18%	4.74%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	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
428]	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

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Case Details

Bench:-Bombay

Lodging No.:-

CEXAL/166/2014

Filing Date:-

19/05/2014

Reg. No.:-

CEXA/91/2014

Reg. Date:-

23/06/2014

Petitioner:-	THE COMMISSIONER OF CENTRAL EXCISE	Respondent:-	CEAT LIMITED. -
Petn. Adv.:-	PRADEEP SHIVNARAIN JETLY (I3289)	Resp. Adv.:-	PDS LEGAL (826)

District:-

THANE

Bench:-	DIVISION
Status:-	Pre-Admission	Category:-	CENTRAL EXISE APPEAL (CEXA)

Act :-

Central Excise and Salt Act

Under Section:-

35G

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2013
LONG TERM BORROWINGS
Term Loan from Banks	0.000
Public Deposits	738.986
Deferred Sales Tax Incentive	449.405
SHORT TERM BORROWINGS
Public Deposits	28.315
Total	1216.706

Note on Unsecured Long Term Borrowings.

Loan from Ratnakar Bank Limited is repayable after 18 months from the date of disbursement i.e. 17th August,

2013.

Public Deposit is repayable after 2 or 3 years from the date of acceptance of public deposit

Interest free Deferred Sales Tax is repayable in annual installment commencing from 26th April, 2011 and ending on 30th April, 2025.

Note:

Cash credit, export packing credit and buyers credit facilities are part of working capital facilities availed from Consortium of Bank and are secured by hypothecation by way of first pari passu charge on all its Current Assets and by way of second pari passu charge on immovable and all movable properties (excluding Current Assets) of the Company situated at Bhandup, Nashik, Halol Plants and RPG House Mumbai.

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10348599	28/03/2012	700,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B37260502
2	10338487	10/02/2012	500,000,000.00	Bank of India	Mumbai Large Corporate Branch, Bank of India Bldg,  4th Floor, 70-80, Mahatma Gandhi Road, Fort, Mumbai, Maharashtra - 400001, INDIA	B33396714
3	10290604	26/05/2011	1,397,500,000.00	Corporation Bank	Bharat House, No. 104, Ground Floor, M.S .Marg, Mumbai, Maharashtra - 400023, INDIA	B14418354
4	10261396	24/12/2010	500,000,000.00	Bank of India	Mumbai Large Corporate Branch, Bank of India Bldg,  4th Floor, 70-80, Mahatma Gandhi Road, Mumbai,  Maharashtra - 400001, INDIA	B03278157
5	10247473	21/10/2010	1,164,600,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	A96947650
6	10231597	21/06/2010	500,000,000.00	Bank of Baroda	Industrial Finance Branch, Baroda House, Cawasjee  Patel Street, Fort, Mumbai, Maharashtra - 400001,  INDIA	A89904403
7	10230552	21/06/2010	1,000,000,000.00	Export-Import Bank of India	Centre One Building, Floor 21, World Trade Centre  Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA	A89559595

* Date of charge modification

FIXED ASSETS:

· Land (Freehold / Leasehold)

· Building

· Plant and Equipments

· Furniture and fixture

· Vehicles

· Office Equipments

PRESS RELEASE:

CEAT LIMITED BRINGS ‘CEAT-PRO KNOWLEDGE SERIES’ TO PATNA

· A Pan-India series looking to address issues concerning the Indian truck transportation market

· A platform of partnership, a circle of trust between CEAT, participating partners and India’s top fleet companies

Patna, January 25, 2013:

Indian tyre major CEAT Limited, an RPG Enterprise company, organized a knowledge platform – ‘CEAT PRO’ for fleet owners in Patna to help them better their business and reduce operation costs. This is an interactive platform that gives fleet owners access to best practices and ideas across diverse areas of the Indian trucking industry.

As part of its fleet excellence program CEAT PRO knowledge series aims to create a common platform for sharing information and resources and thus helping fleets compete on a flatter turf. The panelists will speak about Right selection of Lubricants, Do’s and Dont’s of Finance, Benefits of AMC and Radialization and its benefits.

CEAT recognises that the Indian truck transportation market is approximately Rs 38,000 crore, of which over 80% of the market lies in the unorganised sector. Despite recent developments, the overall awareness of new technologies and industry best practices is quite low. Penetration of new age systems such as the Fleet Management software or the GPS systems is quite dismal and mostly restricted to only a select few big transporters. Therefore, CEAT has taken several initiatives towards developing this sector.

As a further step, CEAT has also started India’s First and only Transportation awards, India Road Transportation Awards (IRTA). This award is the next step in CEAT’s efforts to take forward the knowledge platform and to start recognizing the achievers in the transportation sector. It is a platform to recognize theInnovators who have transformed the Transportation Industry. The third edition of National Awards was held on July 20, 2012.

Speaking at CEAT – Pro at Patna, Vinod Kumar, Vice President - Marketing, CEAT Limited said, “Though the Indian transportation industry is booming it lacks a common platform to engage customers and help them build best practices. At CEAT, we believe in partnering with our customers and the automobile industry to gain value and optimum growth, thus “CEAT PRO” was launched.”

He added, “CEAT – PRO is not a selling tool but a knowledge plank, to share ideas and best practices. CEAT engages industry experts and helps create value for the end customer by assisting him with new technology, information and best practices.”

CEAT Q2 PROFIT SURGES TO RS.770 MILLIONS, ANNOUNCES RS.6500.000 MILLIONS EXPANSION PLAN

· Net Sales up 9%, at Rs.13190.000 Millions

· EBITDA grows to 13.8% from 7.2%

Mumbai, India –October 28, 2013

CEAT Limited, an RPG Group company, announced its unaudited results for the second quarter ending September 30, 2013.

On a standalone basis, the India operations reported a revenue growth of 9% year on year at Rs.12630.000 Millions. PBT rose to Rs10970.000 Millions from Rs.410.000 Millions in the same quarter last year. EBITDA for Q2FY14 stood at 13.1% compared to 6.7% in the corresponding quarter of the previous year.

The consolidated EBITDA margins stood at 13.8% compared to 7.2% in Q2 last year. The company's PAT rose to Rs.770.000 Millions from Rs.380.000 Millions (YoY), while the net sales zoomed to Rs.13190.000 Millions as against Rs.12130.000 Millions in Q2 FY13.

Mr. Anant Goenka, Managing Director, CEAT Limited said, "Q2 has been positive for CEAT with strong volume growth in passenger segments. Going forward, we expect both growth and margins to be on similar levels. Our Sri Lankan operations too continue to show robust and profitable growth.

Mr. Subbarao Amarthaluru, CFO, CEAT Limited said, "On a consolidated basis, we have clocked EBIDTA of around Rs.3400.000 Millions for the first half of the current fiscal as compared to Rs.4500.000 Millions clocked for the full year ended March 2013. This is indeed very encouraging."

As passenger car penetration in India continues to increase, CEAT has announced its plan to expand production at its Halol plant. As part of its expansion, it is investing an additional Rs.6500.000 Millions to enhance the existing capacity of the radial tyre unit by 120 tonne per day (TPD).

"CEAT is seeing traction in UV radials and passenger cars. In order to cater to the growing demand of CEAT tyres in the domestic replacement market as well as to cater to new OEMs, we are expanding our production in passenger car and UV radials by 120 TPD," Mr. Goenka added.

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.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KRN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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.