MIRA INFORM REPORT

Report Date :

06.05.2014

IDENTIFICATION DETAILS

Name :	HONDA SIEL POWER PRODUCTS LIMITED

Registered Office :	3 and 4/48, 2^nd Floor, Enkay House, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi – 110021, Delhi

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	19.09.1985

Com. Reg. No.:	55-203950

Capital Investment / Paid-up Capital :	Rs.101.431 Millions

CIN No.: [Company Identification No.]	L40103DL2004PLC203950

Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturer, Importer and Exporter of Power Products and Related Parts

No. of Employees :	1023 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 11000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established company having good track record. There seems sharp dip in the profit of the company during year 2013 however financial position of the company is sound. No borrowings recorded by the company. The rating also takes into consideration the company’s brand image and the strong support received by the group companies. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

India

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED

Management is non co-operative, Tel. No. 91-120-2341064

LOCATIONS

Registered Office :	3 and 4/48, 2^nd Floor, Enkay House, Malcha Marg Shopping Complex, Chanakyapuri, New Delhi – 110021, Delhi, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	honda.export@hspp.com ho.legal@hspp.com ho.mktg@hspp.com
Website :	www.hondasielpower.com

Head Office / Factory :	Plot No.5, Sector No.41 (Kasna), Greater Noida Industrial Development Area, District, Gautam Budh Nagar – 201310, Uttar Pradesh, India
Tel. No.:	91-120-2341050 / 59
Fax No.:	91-120-2341078 / 79
E-Mail :	Domestic : ho.mktg@hspp.com Exports : honda.export@hspp.com

Company Showroom :	H-111, GF, Sushant Shopping Arcade, B-Block, Sushant Lok - 1, Gurgaon – 22002, Haryana, India
Tel. No.:	91-124-2570550 / 51
Mobile No.:	91-9811166514

Branch Offices :	Located at: Ahmedabad Chennai Jaipur Bangalore Cochin Lucknow Bhopal Kolkata Mumbai Bhubaneswar Guwahati New Delhi Hyderabad Patna Chandigarh Ranchi

DIRECTORS

As on: 31.03.2013

Name :	Mr. Siddharth Shriram
Designation :	Chairman
Address :	No.3A, Chitrakoot The Green, Opposite Air Force stat, Rajokri, NCT of Delhi – 110038, India
Date of Birth/Age :	18.01.1940
Date of Appointment :	19.09.1985

Name :	Dr. Dharam Veer Kapur
Designation :	Director
Address :	405, Aradhana Apartments, R K Puram, NCT of Delhi – 110066, India
Date of Birth/Age :	09.09.1928
Date of Appointment :	31.03.1988

Name :	Mr. Om Prakash Khaitan
Designation :	Director
Address :	N-12, Panchsheel Park, New Delhi – 110017, India
Date of Birth/Age :	21.01.1943
Date of Appointment :	31.03.1988

Name :	Mr. Ravi Vira Gupta
Designation :	Director
Address :	9-B, Anand Lok, New Delhi – 110049, India
Date of Birth/Age :	19.11.1937
Date of Appointment :	25.03.2005

Name :	Mr. T. Hamasaki
Designation :	President and Chief Executive Officer

Name :	Mr. S. Yotsumoto
Designation :	Whole Time Director

Name :	Mr. Y. Matsumota
Designation :	Whole Time Director

Name :	Mr. Vinay Mittal
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Ms. Payal Chaddha
Designation :	Secretary
Address :	227-C Express View Apartments, Sector – 93, Gautam Budh Nagar, Uttar Pradesh, India
Date of Birth/Age :	27.08.1977
Date of Appointment :	18.09.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2013

Category of Shareholder	Total No. of Shares	Total No. of Shares held in Dematerialized Form	Total Shareholding as a % of Total No. of Shares
			As a % of (A+B)	As a % of (A+B+C)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	101433	101433	1.00	1.00
Sub Total	101433	101433	1.00	1.00
(2) Foreign
Bodies Corporate	6762000	6762000	66.67	66.67
Sub Total	6762000	6762000	66.67	66.67
Total shareholding of Promoter and Promoter Group (A)	6863433	6863433	67.67	67.67
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	20	0	0.00	0.00
Financial Institutions / Banks	1100	800	0.01	0.01
Foreign Institutional Investors	177500	177500	1.75	1.75
Sub Total	178620	178300	1.76	1.76
(2) Non-Institutions
Bodies Corporate	593869	592626	5.85	5.85
Individuals
Individual shareholders holding nominal share capital up to Rs0.100 Million	1719876	1502099	16.96	16.96
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	620946	620946	6.12	6.12
Any Others (Specify)	166327	140045	1.64	1.64
NRIs/OCBs	140677	114395	1.39	1.39
Clearing Members	25289	25289	0.25	0.25
Trusts	361	361	0.00	0.00
Sub Total	3101018	2855716	30.57	30.57
Total Public shareholding (B)	3279638	3034016	32.33	32.33
Total (A)+(B)	10143071	9897449	100.00	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0	0.00	0.00
(1) Promoter and Promoter Group	0	0	0.00	0.00
(2) Public	0	0	0.00	0.00
Sub Total	0	0	0.00	0.00
Total (A)+(B)+(C)	10143071	9897449	0.00	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Power Products and Related Parts

Products :	Generators Water Pumps Engines Lawnmowers Brush Cutters Tillers

GENERAL INFORMATION

No. of Employees :	1023 (Approximately)

Bankers :	The Bank of Tokyo-Mitsubishi UFJ Limited HDFC Bank Limited ICICI Bank Limited

Banking Relations :	--

Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Building No10, 8^th Floor, Tower B, DLF Cyber City, Phase – II, Gurgaon – 122002, Haryana, India

Technical and Financial Collaborators :	Honda Motor Company Limited, 1-1, 2 Chome, Minami-Aoyama, Minato-ku, Tokyo, Japan

Ultimate Holding and Holding Company :	Honda Motor Company Limited, Japan

Fellow Subsidiaries :	Honda Motor Southern Africa (Pty.) Limited, South Africa Honda Philippines Inc. Philippines Honda Del Peru S.A., Peru Honda de Mexico, S.A. de C.V., Mexico Honda Australia M. and P.E. Pty. Limited, Australia Asian Honda Motor Company, Limited, Thailand Honda Trading Corporation, Japan Honda Manufacturing (Nigeria) Limited, Nigeria Honda Trading Asia Company Limited, Thailand PT. Honda Power Products Indonesia, Indonesia Honda Motorcycle and Scooter India Private Limited, India Honda Motor India Private Limited, India Honda Express Logistics India Private Limited, India Moto Honda da Amazonia Limited., Brazil Honda Trading (South China) Company Limited, Hong Kong Honda R and D Limited, Japan Honda R and D (India) Private Limited, India Honda Europe NV, Belgium Honda Motor De Argentina S.A., Argentina Shanghai Honda Trading Company Limited, China Honda Atlas Power Product Private Limited, Pakistan PT. Honda Trading Indonesia, Indonesia Honda Trading Brazil Limited, Brazil Honda Trading De Argentina S.A., Argentina Honda Trading Corporation India Private Limited, India Honda Mindong Generator Company Limited, China Honda Kaihatsu Company Limited, China Honda Trading Europe Limited, Belgium Honda Motor Europe Limited U.K Honda Canada Incorporation, Canada Jailing-Honda Motors Company Limited, China Honda Soltec Company Limited, Japan American Honda Motor Company Incorporation, USA Honda Cars India Limited (Previously known as “Honda Siel Cars India Limited”, India)

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital:

No. of Shares	Type	Value	Amount

15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued

No. of Shares	Type	Value	Amount

10144000	Equity Shares	Rs.10/- each	Rs.101.440 Millions

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount

10143071	Equity Shares	Rs.10/- each	Rs.101.431 Millions

a. Reconciliation of shares outstanding at the beginning and at the end of the reporting period

	As at 31 March 2013
	Number of shares	Rs. In Millions
Outstanding at the beginning and end of the year	10143071	101.431

b. Rights, preferences and restrictions attached to equity shares

The company has a single class of equity shares. Accordingly, all equity shares rank equally with regards to dividends and share in the company’s residual assets. The voting rights of equity shareholders on a poll (not on show of hands) are in proportion to its share of the pais-up equity capital of the company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

During the year ended 31 March 2013, the company has recognized per share dividend for distribution to equity shareholders amounting to Rs.4.00 (31 March 2012, Rs.9.00).

On winding up of the company, the holder of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

c. Equity shares held by ultimate holding company/ holding company and/ or their subsidiaries/ associates

	As at 31 March 2013
	Number of shares	Rs. In Millions
Honda Motor Company Limited, Japan, the holding company and also being the ultimate holding company	6762000	67.620

	6762000	67.620

d. Details of shareholders holding more than 5% shares in the company

	As at 31 March 2013
	Number of shares	% holding in the class
Honda Motor Company Limited, Japan, the holding company and also being the ultimate holding company	6762000	66.67%

	6762000	66.67%

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	101.431	101.431	101.431
(b) Reserves & Surplus	2,699.316	2,540.739	2,130.021
(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)	2,800.747	2,642.170	2,231.452

(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	47.837	14.851	1.238
(c) Other long term liabilities	17.037	18.005	18.827
(d) long-term provisions	19.954	19.314	13.974
Total Non-current Liabilities (3)	84.828	52.170	34.039

(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	549.103	588.977	418.215
(c) Other current liabilities	149.976	202.674	157.270
(d) Short-term provisions	57.655	119.777	99.856
Total Current Liabilities (4)	756.734	911.428	675.341

TOTAL	3,642.309	3,605.768	2,940.832

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,124.995	747.440	723.235
(ii) Intangible Assets	47.763	21.741	23.692
(iii) Capital work-in-progress	9.229	102.895	5.614
(iv) Intangible assets under development	0.721	0.000	0.615
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	279.510	225.218	38.197
(e) Other Non-current assets	0.000	0.000	82.460
Total Non-Current Assets	1,462.218	1,097.294	873.813

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1,054.615	711.514	771.831
(c) Trade receivables	281.622	253.865	131.374
(d) Cash and cash equivalents	583.542	1,303.555	959.714
(e) Short-term loans and advances	258.474	194.421	174.703
(f) Other current assets	1.838	45.119	29.397
Total Current Assets	2,180.091	2,508.474	2,067.019

TOTAL	3,642.309	3,605.768	2,940.832

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	5,155.472	5,033.704	4,056.484
	Other Income	69.749	110.806	77.955
	TOTAL (A)	5,225.221	5,144.510	4,134.439

Less	EXPENSES
	Cost of Materials Consumed	3,102.147	2,808.400	2,271.398
	Purchases of Stock-in-Trade	471.694	330.333	384.114
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(260.317)	82.960	(126.973)
	Employees benefits expense	427.200	361.782	295.803
	Other expenses	1,034.427	933.989	783.532
	Exceptional Items	0.000	(203.382)	0.000
	TOTAL (B)	4,775.151	4,314.082	3,607.874

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	450.070	830.428	526.565

Less	FINANCIAL EXPENSES (D)	0.000	0.000	0.000

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	450.070	830.428	526.565

Less/ Add	DEPRECIATION/ AMORTISATION (F)	137.459	103.045	82.034

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	312.611	727.383	444.531

Less	TAX (I)	106.567	210.568	147.900

	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	206.044	516.815	296.631

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	1329.308	970.590	792.367

Less	APPROPRIATIONS
	Transfer to General Reserve	20.600	52.000	29.700
	Dividend	40.572	91.288	76.073
	Tax on Dividend	6.895	14.809	12.635
	Total (M)	68.067	158.097	118.408

	Balance Carried to the B/S (J+K+L-M)	1467.285	1329.308	970.590

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	714.443	673.902	611.429

	IMPORTS
	Raw Materials	101.859	87.882	69.844
	Components	1,006.283	737.159	638.301
	Consumables	1.983	1.249	1.105
	Stores and Spares	0.000	0.429	1.989
	Capital Goods	68.664	67.368	15.265
	TOTAL IMPORTS	1,178.789	894.087	726.504

	Earnings / (Loss) Per Share (Rs.)	20.31	50.95	29.24

QUARTERLY RESULTS

	30.06.2013 1^st Quarter	30.09.2013 2^nd Quarter	31.12.2013 3^rd Quarter
Audited / UnAudited	Unaudited	Unaudited	Unaudited
Net Sales	1026.500	1043.500	1512.600
Total Expenditure	963.900	950.600	1367.700
PBIDT (Excl OI)	62.600	92.900	144.900
Other Income	14.800	7.600	6.600
Operating Profit	77.400	100.500	151.500
Interest	0.000	0.000	0.000
Exceptional Items	0.000	0.000	0.000
PBDT	77.400	100.500	151.500
Depreciation	42.400	44.000	44.800
Profit Before Tax	35.000	56.500	106.700
Tax	12.000	18.800	36.200
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	23.000	37.700	70.500
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	23.000	37.700	70.500

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.94	10.05	7.17

Net Profit Margin (PBT/Sales)	(%)	6.06	14.45	10.96

Return on Total Assets (PBT/Total Assets}	(%)	8.61	20.77	15.15

Return on Investment (ROI) (PBT/Networth)		0.112	0.275	0.199

Current Ratio (Current Asset/Current Liability)		2.88	2.75	3.06

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	101.431	101.431	101.431
Reserves & Surplus	2,130.021	2,540.739	2,699.316
Net worth	2,231.452	2,642.170	2,800.747

long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4,056.484	5,033.704	5,155.472
		24.090	2.419

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4,056.484	5,033.704	5,155.472
Profit	296.631	516.815	206.044
	7.31%	10.27%	4.00%

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	--
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

DOMESTIC MARKETS AND EXPORTS

The company achieved gross sales of Rs.5555.900 Millions in 2012-13 (as against Rs.5367.800 Millions in 2011-12) in domestic and exports markets thereby registering a growth of 3.5% over previous year.

The year saw the introduction of the New 1kva generator which has received an encouraging response from the market. The technologically advanced EU series generators have shown robust growth.

During the year, the Company introduced a New Tiller cum Power Weeder model in the small 5.5 HP category for the domestic market.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

DOMESTIC BUSINESS

GENSETS

The company launched a New 1 kVA Generator, EP1000, which is made in India, to fill the needs of home and small business owners, who have been demanding an affordable and fuel efficient alternate power source for long power cuts. EP1000 has been developed focusing on customers looking for a dependable power solution in the tier 2 and tier 3cities. This new generator is power packed with the unique Honda decompression technology for effortless starting and has found good acceptance in the marketplace, the advantages of which have reflected in the overall sales volume.

Despite difficult economic situation, the Company was able to maintain the overall sales volume while registering a robust growth of 25% in the Advance Technology based EU series generators.

The dismal power situation in the southern states helped the company to realize incremental business from that region.

The increase in the fuel prices during the year made customers explore better technology products to keep their running expenses under control. The 'Eco Throttle’ feature in their EU generators has helped their customers to reduce the operating costs. Their communication of such features and benefits as a means of reducing costs has helped in reaching out to new customers.

Outlook

The power deficit due to increased consumption is expected to continue and the need for uninterrupted power will be a key driver to stimulate and boost generators business.

GENERAL PURPOSE ENGINES AND WATER PUMPING SETS

The demand for Engines and Pumps fell marginally due to deficient rains in parts of the country.

The company continued its effort in increasing its network. This proximity to the users helped in reaching out to many prospective customers.

Northern areas continued to support the business of engines needed for sprayer application. Such business again highlights the advantages of light weight and portable Honda Engines.

Outlook

Farmers continue to get support from the retail market through better prices off arm products as well as from the Government in the form of subsidies in input material. The demand based on the above parameters is expected to grow.

The construction and OEM (Original Equipment Manufacturer) market is also developing considering the better cost structure in India. The company is looking at increasing its presence in these segments by working closely with small companies and manufacturers. Their overhead valve engines series is expected to boost this business in the years to come.

Applications such as sprayers and back pack sprayers are gaining popularity and the Company is working very closely with select good quality assemblers to grow volumes and counter the low cost Chinese made imported products.

BRUSH CUTTERS

Honda Brush Cutters have been able to provide an affordable and efficient mechanized solution to replace the manual operations for farm activity like de-weeding and harvesting.

Increased support from the Government in areas such as plantations and horticulture are providing the impetus to grow this business.

The Southern markets continue to be the major areas contributing to sales.

The Company strengthened its after sales support activity and also introduced a new variant that is expected to consolidate and reinforce its leadership position.

TILLERS

The category is showing promising growth as new areas are developing to help sales expansion.

A new Tiller model with features better suited to the customers' requirement was launched. The demand for this model for initial land preparation and de-weeding is steadily growing amongst progressive farmers.

MARINE SEGMENT

To leverage the growth in tourism and development of water ways, the Company has launched Out Board Engines and LTOBs (Long Tail Out Board Engines) to cater to Marine Segment. Even though the beginning is small they do expect an encouraging response from this segment.

Outlook

Supported by the launch of the new generator models, the company will persist with its strategy to explore new markets.

FINANCIAL PERFORMANCE

During the year 2012-13 the net sale was Rs.5123.700 Millions as against Rs.5013.300 in the previous year. This represents an increase of 2.20% in terms of value over previous year.

Profit Before Tax and Exceptional Items for the year was Rs.312.600 Millions as against Rs.524.000 Millions in 2011-12.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Claims against the Company not acknowledged as debt:
Income Tax Matters	450.054	377.396
Excise Matters	485.963	287.788
Service Tax Matters	68.092	67.760
Sales Tax Matters	15.526	80.491
Other Matters	5.548	2.714

FIXED ASSETS

Tangible Assets

Land – Freehold
Land - Leasehold
Buildings
Plant and Equipment
Furniture And Fixtures
Vehicles
Office Equipment
Computers

Intangible Assets

Technical Know How
Model Fees
Software

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2013

(Rs. In Millions)

	PARTICULARS	Quarter Ended		Nine Months Ended
Sr. No.	Particulars	31.12.2013 (Unaudited)	30.09.2013 (Unaudited)	31.12.2013 (Unaudited)
1	Income from Operation
	a) Net sales/income from operations(net of excise duty)	1491.200	1014.200	3514.500
	b) Other operating income	21.400	29.300	68.100
	Total income from operations (net)	1512.600	1043.500	3582.600

2	Expenses :
	a) Cost of materials consumed	854.400	754.700	2215.500
	b) Purchase of stock in traded	70.200	147.800	151.300
	c) Changes in inventories of finished goods, stock in trade and work in progress	9.800	(324.300)	(319.700)
	d) Employees benefit expenses	123.300	127.400	374.000
	e) Depreciation and amortization expense	44.800	44.000	131.200
	f) Other expenditure*	310.000	245.000	764.800
	Total expenses	1412.500	994.600	3413.400
3	Profit from operations before other income(1-2)	100.100	48.900	169.200
4	Other Income	6.600	7.600	29.000
5	Profit from ordinary activities before tax (3+4)	106.700	56.500	198.200
6	Tax expenses	36.200	18.800	67.000
7	Net profit for the period (5-6)	70.500	37.700	131.200
8	Paid-up equity share capital (Face value of Rs.10/ each)	101.400	101.400	101.400
9	Reserves excluding revaluation reserves	-	-	-
10	Earnings per share (Face value of Rs.10/ each) (not annualized except for the year ended 31-Mar-2013)
	- Basic	6.95	3.72	12.94
	- Diluted	6.95	3.72	12.94

A	PARTICULARS OF SHAREHOLDING
1	Public shareholding
	- Number of shares	3279638	3279638	3279638
	- Percentage of shareholding	32.33%	32.33%	32.33%
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	- Number of shares	NIL	NIL	NIL
	b) Non - encumbered
	- Number of shares	6863433	6863433	6863433
	- Percentage of shares (as a % of the total shareholding of the Promoter and Promoter group)	100%	100%	100%
	- Percentage of shares (as a % of the total share capital of the Company)	67.67%	67.67%	67.67%

B	Investor complaints	Quarter Ended 31.12.2013
	Pending at the beginning of the quarter	Nil
	Received during the quarter	5
	Disposed of during the quarter	4
	Remaining unresolved at eh end of the quarter	1

*Other expenses for the quarter ended 31 December 2013 includes an amount of Rs.6.700 Millions pertaining to quarter ended 30 June 2013.

Notes:

The statement of unaudited financial results for the quarter ended and nine months ended 31 December 2012 has been prepared following the same accounting policies as were followed in the annual financial statements for the year ended 31 March 2013.

The figures for the previous period(s) / year have been re-grouped / recast, wherever necessary to make them comparable.

The unaudited financial results for the quarter ended and nine months ended 31 December 2013 have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 27 January 2014. The statutory auditors of the Company have carried out a limited review of the financial results for the quarter ended and nine months ended 31 December 2013. An unmodified opinion has been issued and the same is being filed with the stock exchange along with the above results

UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2013 SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

	PARTICULARS	Quarter Ended		Nine Months Ended
Sr. No.	Particulars	31.12.2013 (Unaudited)	30.09.2013 (Unaudited)	31.12.2013 (Unaudited)
1	Segment Revenue
	(a) Domestic	1006.000	854.400	2807.700
	(b) Exports	506.600	189.100	774.900
	Total	1512.600	1043.500	3582.600
	Less: Intersegment Revenue	-	-	-
	Net Sales / Income from Operation	1512.600	1043.500	3582.600
2	Segment Results
	Profit / (Loss) before tax and interest from each segment
	(a) Domestic	98.700	99.900	283.800
	(b) Exports	58.100	7.300	49.100
	Total	156.800	107.200	332.900
	Less: (i) Other un-allocable expenditure net off un- allocable income (including exceptional items)	50.100	50.700	134.700
	Total profit before tax	106.700	56.500	198.200
3	Capital Employed (Segment Assets - Segment Liabilities)
	(a) Domestic	997.800	831.200	997.800
	(b) Exports	231.400	61.100	231.400
	(c) Unallocated	1702.700	1969.100	1702.700
	Total	2931.900	2861.400	2931.900

The segments have been identified in line with Accounting Standard (AS) 17 'Segment Reporting' taking into account the risks and return, organisation structure and internal reporting system.

Segment revenue comprises income from sales and services which are directly identifiable to the individual segments. Segment results and capital employed include amounts directly identifiable to each of the segments and which can be allocated on a reasonable basis. Unallocable income includes interest income on fixed deposits, net profit on sale of fixed assets, liabilities no longer required written back and exceptional items. Unallocable expenditure includes corporate expenditure which is not identifiable to any of the segments. Unallocated capital employed includes assets and liabilities which are not specifically allocable to individual segments.

The figures for the previous period(s) / year have been re-grouped / recast, wherever necessary to make them comparable.

The above segment results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 27 January 2014.

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.60.48
UK Pound	1	Rs.101.32
Euro	1	Rs.83.34

INFORMATION DETAILS

Information Gathered by :	HTL

Analysis Done by :	DIV

Report Prepared by :	VNK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--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	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		67

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.