MIRA INFORM REPORT

Report No. :	305878
Report Date :	05.02.2015

IDENTIFICATION DETAILS

Name :	ATLAS CYCLES (HARYANA) LIMITED
Registered Office :	Industrial Area Sonepat – 131001, Haryana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.05.1950
Com. Reg. No.:	55-001614
Capital Investment / Paid-up Capital :	Rs.32.519 Millions
CIN No.: [Company Identification No.]	L35923HR1950PLC001614
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing of bicycles and its components and steel tubes.
No. of Employees :	2500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and loss that company has incurred from its operational activities. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

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 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	March, 2014
Rating	Fund Based Limits = BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	ICRA

Rating Agency Name	March, 2014
Rating	Non Fund Based Limits = A4
Rating Explanation	Mnimal degree of safety and very high credit risk.
Date	ICRA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	Industrial Area Sonepat – 131001, Haryana, India
Tel. No.:	91-130-2200001 to 06
Fax No.:	91-130-2200018
E-Mail :	companylaw@atlascyclesonepat.com akgupta@atlascycles.co.in anilrai@atlascycles.co.in
Website :	www.atlasbicycles.com
Sahibabad Unit :	Plot No. 55, Site-IVUPSIDC, Industrial Area, Sahibabad–201010, Uttar Pradesh, India
Malanpur Unit :	Plot No. U-16, 17, 21 & 22 Malanpur Industrial Area Near Gwalior, Distt. Bhind , Madhya Pradesh, India

DIRECTORS

As on 30.09.2013

Name :	Mr. Hari Krishan Ahuja
Designation :	Non Executive Director
Date of Appointment :	06.08.1990
DIN No.:	00315876
Name :	Mr. Hira Lal Bhatia
Designation :	Non Executive Director
Date of Appointment :	31.07.1979
DIN No.:	00159258
Name :	Mr. I.D. Chugh
Designation :	Whole Time Director
Date of Appointment :	31.03.2008
DIN No.:	00073257
Name :	Mr. Vikram Khosla
Designation :	Additional Director
Date of Appointment :	19.12.2013
DIN No.:	01574818
Name :	Mr. Kartik Roop Rai
Designation :	Additional Director
Date of Appointment :	19.12.2013
DIN No.:	06789287
Name :	Mr. Sanjiv Kavaljit Singh
Designation :	Additional Director
DIN No.:	00015689

KEY EXECUTIVES

Name :	Mr. Jaspreet Singh
Designation :	Company Secretary
BOARD COMMITTEES :
Audit Committee :
Name :	Mr. Hira Lal Bhatia
Designation :	Chairman
Name :	Mr. Ishwar Das Chugh
Designation :	Member
Name :	Mr. Hari Krishan Ahuja
Designation :	Member

SHAREHOLDING PATTERN

As on 30.09.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	833749	25.64
Bodies Corporate	620616	19.08
Sub Total	1454365	44.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1454365	44.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	953	0.03
Financial Institutions / Banks	7616	0.23
Foreign Institutional Investors	9147	0.28
Sub Total	17716	0.54
(2) Non-Institutions
Bodies Corporate	257176	7.91
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	1159390	35.65
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	304294	9.36
Any Others (Specify)	58978	1.81
Clearing Members	46693	1.44
NRIs/OCBs	12284	0.38
Trusts	1	0.00
Sub Total	1779838	54.73
Total Public shareholding (B)	1797554	55.28
Total (A)+(B)	3251919	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)	3251919	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in manufacturing of bicycles and its components and steel tubes.
Products :	· Bicycles · Steel tubes
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Countries :	· Middle East Asia · South East Asia · West Europe
Imports :
Countries :	· China · Malyasia · Singapore · Taiwan
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Shaoxingkunlun Import and Export Company Limited, China
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Naime Trader, Bangladesh
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

2500 (Approximately)

Bankers :

· Central Bank of India

· Punjab National Bank

· Bank of Baroda

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan From Banks
Rupee term loan	0.000	10.000
Car loan from banks	7.865	9.683
SHORT TERM BORROWINGS
Working capital facility from banks	559.457	465.327
Short term loans	32.487	0.000
Bills discounting from Bank/Financial Institution	237.566	317.244
Total	837.375	802.254
Note : 1. Term Loan from Central Bank Of India is secured against first pari passu charge on respective unit’s immovable property and future assets which it may acquire in future and carries interest @ 13% p.a and is repayable on 3 yearly equal installments. 2. The Company accepts fixed deposits from the public which carries interest @ 11% p.a. for FDRs less than Rs. 0.200 Million for a period of one year and 11.5% p.a for more than one year irrespective of amount. 3. Vehicle loans are secured by way of hypothecation of vehicle concerned and carries interest from 8.5% p.a. to 13% p.a. on different loans and repayable in 36 / 48 equal installments. 4. Term loan from Bank is secured against first pari passu charge on immovable property and future assets which it may acquire in future and carries interest @ 15% p.a and is repayable on six monthly equal installments from the date of disbursement i.e October 2013.

Statutory Auditors :
Name :	Mehra Khanna and Company Chartered Accountants
Address :	Delhi, India
Memberships :	Not Available
Collaborators :	Not Available
Associates :	· Milton Cycles Inds Limited · Janki Das and Sons Private Limited · Romer Engineering Works Private Limited
Subsidiaries :	· Atlas Cycles (Sonipat) Limited · Atlas Cycles (Sahibabad) Limited · Atlas Cycles (Malanpur) Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	6 1/4% P.A. free of Income tax cumulative redeemable Preference shares	Rs.100/-each	Rs.3.000 Millions
9700000	Equity Shares	Rs.10/-each	Rs.97.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3251919	Equity Shares	Rs.10/- each	Rs.32.519 Millions

Note :

Reconciliation Of The Number Of Equity Shares Outstanding At The Beginning And At The End Of The Reporting Year

Particulars	No. of Shares
Equity Shares outstanding at the beginning of the year	3251919
Equity Shares issued during the year	---
Shares outstanding at the end of the year	3251919

Terms/Right Attached To Equity Shares

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and also has equal right in distribution of Profit/Surplus in proportions to the number of equity shares held by the shareholders.

Equity Shares In The Company Held By Each Shareholder Holding More Than 5% Shares Are As Under:

Name Of The Equity Shareholder	No. of Shares	Percentage
Milton Cycles Industries Limited	325846	10.02%
Limrose Enng Works Private Limited	257650	7.92%

LISTING DETAILS

Subject Stock Code :	· National Stock Exchange – ATLASCYCLE · Bombay Stock Exchange – 505029 · Delhi Stock Exchange – 01174
Stock Exchange Place :	· National Stock Exchange of India Limited (NSE) · Bombay Stock Exchange Limited, (BSE) · Delhi Stock Exchange of India Limited (DSE)

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	32.519	32.519	32.519
(b) Reserves & Surplus	1129.680	1230.446	1219.841
(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)	1162.199	1262.965	1252.360
(3) Non-Current Liabilities
(a) long-term borrowings	93.900	90.516	55.402
(b) Deferred tax liabilities (Net)	36.400	85.400	84.700
(c) Other long term liabilities	27.045	15.216	15.053
(d) long-term provisions	7.339	7.250	6.036
Total Non-current Liabilities (3)	164.684	198.382	161.191
(4) Current Liabilities
(a) Short term borrowings	829.610	799.071	732.890
(b) Trade payables	1261.165	1217.424	1317.503
(c) Other current liabilities	501.162	672.082	707.886
(d) Short-term provisions	381.418	419.846	397.639
Total Current Liabilities (4)	2973.355	3108.423	3155.918
TOTAL	4300.238	4569.770	4569.469
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	903.705	909.449	923.850
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	43.989	41.834	31.617
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	13.159	16.626	15.608
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	169.605	235.946	218.029
(e) Other Non-current assets	0.290	1.063	4.207
Total Non-Current Assets	1130.748	1204.918	1193.311
(2) Current assets
(a) Current investments	107.336	135.347	108.100
(b) Inventories	926.773	1127.427	1135.271
(c) Trade receivables	1623.765	1360.284	1488.843
(d) Cash and cash equivalents	28.727	156.213	132.167
(e) Short-term loans and advances	481.525	584.528	506.752
(f) Other current assets	1.364	1.053	5.025
Total Current Assets	3169.490	3364.852	3376.158
TOTAL	4300.238	4569.770	4569.469

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	6501.141	6783.190	8753.207
	Other Income	17.890	18.290	24.091
	TOTAL	6519.031	6801.480	8777.298
Less	EXPENSES
	Cost of Materials Consumed	4805.508	4899.196	6688.424
	Purchases of Stock-in-Trade	35.128	14.098	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(14.964)	28.714	22.425
	Employees benefits expense	402.158	414.686	436.239
	Other expenses
	Manufacturing Expenses	793.315	696.850	803.346
	Administration Expenses	185.764	195.020	268.827
	Selling Expenses	297.653	300.814	240.765
	TOTAL	6504.562	6549.378	8460.026
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	14.469	252.102	317.272
Less	FINANCIAL EXPENSES	92.201	145.994	194.624
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(77.732)	106.108	122.648
Less/ Add	DEPRECIATION/ AMORTISATION	71.334	70.682	72.269
	PROFIT/ (LOSS) BEFORE TAX	(149.066)	35.426	50.379
Less	TAX	(48.300)	7.700	15.000
	PROFIT/ (LOSS) AFTER TAX	(100.766)	27.726	35.379
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	14.973	14.368	15.997
Less	APPROPRIATIONS
	Transfer to General Reserve		10.000	20.000
	Dividend		14.634	14.634
	Tax on Dividend		2.487	2.374
	Total (M)	0.000	27.121	37.008
	Balance Carried to the B/S (J+K+L-M)	(85.793)	14.973	14.368
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	248.100	219.707	304.829
	TOTAL EARNINGS	248.100	219.707	304.829
	IMPORTS
	Raw Materials	268.114	235.516	379.300
	TOTAL IMPORTS	268.114	235.516	379.300
	Earnings / (Loss) Per Share (Rs.)	(30.99)	8.53	10.88

QUARTERLY RESULTS

Particulars (Rs. In Millions)	Jun 2014	Mar 2014
Audited / Unaudited	Unaudited	Unaudited
Net Sales	1473.100	1890.300
Total Expenditure	1485.700	1872.000
PBIDT (Excl OI)	(12.600)	18.300
Other Income	61.500	0.200
Operating Profit	48.900	18.500
Interest	32.300	29.000
Exceptional Items	0.000	0.000
PBDT	16.600	(10.500)
Depreciation	17.400	16.100
Profit Before Tax	(0.800)	(26.600)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(0.800)	(26.600)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(0.800)	(26.600)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(1.54)	0.41	0.40
Operating Profit Margin (PBDIT/Sales)	(%)	0.22	3.71	3.62
Return on Total Assets (PBT/Total Assets}	(%)	(3.51)	0.79	1.11
Return on Investment (ROI) (PBT/Networth)		(0.13)	0.03	0.04
Debt Equity Ratio (Total Debts/Networth)		0.79	0.70	0.63
Current Ratio (Current Asset/Current Liability)		1.07	1.08	1.07

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	32.519	32.519	32.519
Reserves & Surplus	1219.841	1230.446	1129.680
Net worth	1252.360	1262.965	1162.199
long-term borrowings	55.402	90.516	93.900
Short term borrowings	732.890	799.071	829.610
Total borrowings	788.292	889.587	923.510
Debt/Equity ratio	0.629	0.704	0.795

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	8753.207	6783.190	6501.141
		(22.506)	(4.158)

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	8753.207	6783.190	6501.141
Profit	35.379	27.726	(100.766)
	0.40%	0.41%	(1.55%)

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	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

LITIGATION DETAILS :

IN THE HIGH COURT OF DELHI AT NEW DELHI

CS(OS) 3123/2014

ALLIED STRIPS LTD ..... Plaintiff

Through: Mr. Praveen Agrawal, Adv.

versus

ATLAS CYCLES(HARYANA) LTD and ORS ..... Defendants

Through:

CORAM:

SH. KOVAI VENUGOPAL (DHJS), JOINT REGISTRAR (JUDICIAL)

ORDER

14.10.2014

IA 20071/2014 (Under Section 151 CPC seeking exemption from filing certified/original documents)

For the reasons stated in the application, exemption allowed subject to all just exceptions.

However, plaintiff is directed to file all the original documents at the time of admission/ denial of the documents or as and when so directed by Hon’ble Court. IA disposed of accordingly.

CS(OS) 3123/2014

This is a fresh suit. Let it be checked and registered.

Plaint perused.

Issue summons to the defendants by all modes, returnable for 25^th February, 2015.

KOVAI VENUGOPAL (DHJS)

JOINT REGISTRAR (JUDICIAL)

OCTOBER 14, 2014

dsn

$ 39

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10461590	28/10/2013	1,100,000.00	Bank of Baroda	17-18, Upper Ground Floor, Shipra Krishna Azure,  Kaushambi,, Ghaziabad, Uttar Pradesh - 201010, INDIA	B90086489
2	10390703	21/11/2012	2,000,000.00	Bank of Baroda	17-18, Upper Ground Floor, Shipra Krishna Azure,  Kaushambi, Ghaziabad, Uttar Pradesh - 201010, INDIA	B63622104
3	10390535	16/10/2012	600,000.00	Bank of Baroda	17-18, Upper Ground Floor, Shipra Krishna Azure,  Kaushambi, Ghaziabad, Uttar Pradesh - 201010, INDIA	B63561492
4	10307521	27/07/2011	150,000,000.00	ADITYA BIRLA FINANCE LIMITED	Indian Rayon Compound,, Veraval, Gujarat - 362266,  INDIA	B21110762
5	10463086	06/06/2011	30,000,000.00	CENTRAL BANK OF INDIA LIMITED	NARIMAN POINT, MUMBAI, Maharashtra - 400001, INDIA	B27943026
6	10291285	21/05/2011	150,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.ANNIE BESANT ROAD, WORLI,, MUMBAI, Maharashtra -  400018, INDIA	B14661896
7	10288928	13/05/2011	694,000.00	Bank of Baroda	Kaushambi, Ghaziabad, Uttar Pradesh - 201010, INDIA	B13726815
8	10260934	29/12/2010	600,000.00	Bank of Baroda	Kaushambi, Ghaziabad, Uttar Pradesh - 201010, INDIA	B03069812
9	10261017	29/11/2010	650,000.00	Bank of Baroda	Kaushambi, Ghaziabad, Uttar Pradesh - 201010, INDIA	B03069028
10	10257154	29/11/2010	1,000,000.00	Bank of Baroda	Kaushambi, Ghaziabad, Uttar Pradesh - 201010, INDIA	B01876663

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Public fixed deposits	86.035	70.833
SHORT TERM BORROWINGS
Loan from body corporate	0.100	16.500
Total	86.135	87.333
Note : 1. Cash Credit Limit from Consortium banks is secured against Hypothecation of Inventory and Book Debts and Ist Charge over Fixed Assets of the Company which is repayable on demand and carries Interest @ 15.25% p.a. 2. Bills Discounting facility from SIDBI is fully secured by the stock against the bills discounted and IInd charge over the Fixed Assets of the Company and carries interest @ 13.50% p.a. 3. Overdraft Limit from HDFC Bank is Secured against the lien on the Mutual Funds and carries interest which is repayable on demand and carries interest @ 12.25% p.a. 4. Short Term Corporate Loans carries interest @ 18% p.a.. 5. Bill Discounting Facility from IDBI bank is secured against second charge on current and fixed assets of Malanpur Unit. 6. Unsecured Billl Discounting Facility from India Factoring Finance Limited carries interest@ 15% p.a.

OUTLOOK

Bicycle Industry is getting more and more competitive and to compete with the world leaders in producing high class bicycles and tapping export market the Indian bicycle industry needs to incorporate the latest Research and Development facilities and pay special attention to design development.

On the whole, the future of the bicycle industry is very challenging. With the globalization, the domestic market is open to goods and services from global companies because of low tariff. Thus the bicycle industry is facing very challenging time.

Protection is a thing of the past. Only those companies will survive which successfully structure and modernize technology to combat global competitiveness in terms of quality, cost and product development.

FINANCIAL PERFORMANCE

The company achieved a turnover Rs.6501.100 Millions during the year compared to Rs.6783.100 Millions during the previous year. income from other sources is Rs.17.900 Millions as compared to Rs.18.300 Millions in previous year. Losses after taxtion, is Rs.100.700 Millions as compared to profit of Rs.27.700 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Overview

India produces approximately 10% of the world annual bicycle production, which is estimated at Rs.125 Millions units. The annual domestic demand of bicycles in India is approximately Rs.10 Millions units, out of which around Rs. 2.5 Millions units is a government demand for the various welfare schemes. Exports out of India are largely to Africa and the less developed economies and negligible to western markets. Today, the Indian bicycle manufacturing and bicycle parts industry is widely recognized for its quality standards in the international market.

The market for the premium or the lifestyle bikes targeted towards the lifestyle consumer is just about emerging on account of increasing individual incomes and higher aspiration levels of the middle income group. Growth in the “specials segment” (Sport Light Roadster, mountain terrain bike and children’s bicycles) was higher than in the “standard segment. The definition of high end bikes itself is changing.

Not only are the price points changing but even definitions of the segment are. Hitherto, cycles were simplistically

segmented into gents, ladies, kids and high end. But now the lifestyle bikes are being segmented in line with the global trend that is based on their usage. There are Road bikes, Mountain tarrain bikes and Children bikes etc.

FIXED ASSETS

· Land and Building

· Plant and Machinery

· Computer

· Electrical Installation

· Vehicles

· Furniture and Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.68
UK Pound	1	Rs.93.53
Euro	1	Rs.70.74

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	---
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		32

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.