MIRA INFORM REPORT

Report No. :	302784
Report Date :	12.01.2015

IDENTIFICATION DETAILS

Name :	JCB INDIA LIMITED (w.e.f. January, 2003)
Formerly Known As :	ESCORTS JCB LIMITED
Registered Office :	B-1/ I-1, 2^nd Floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi – 110044
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.02.1979
Com. Reg. No.:	55-009431
Capital Investment / Paid-up Capital :	Rs.84.900 Millions
CIN No.: [Company Identification No.]	U74899DL1979PLC009431
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	DELJ05267D
PAN No.: [Permanent Account No.]	AAACE0078D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and trading of Excavators/Loaders, Construction Equipments, related spares and components.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 64500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a subsidiary of J.C. Bamford Excavators Limited, U.K. It is an established company having good track record. Financial position of the company is sound. Fundamentals of the company are strong and heathy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

NOT AVAILABLE

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.

INFORMATION DENIED

Management Non Co-Operative (Tel No.: 91-129-4299000)

LOCATIONS

Registered Office :	B-1/ I-1, 2^nd Floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi – 110044, India
Tel. No.:	91-11-23310145/ 26959157/ 26941139/ 26959997/ 40539745
Fax No.:	91-11-23310271/ 74/ 26959351/ 26959039/ 40539744
E-Mail :	rnanda@del12.vsnl.net.in sanjeev.gemawat@jcbindia.com cs.legal@jcb.com bhakta@kangaSubject.com s.ramaswamy@jcb.com achal@buzzcomm.in
Website :	www.jcbindia.com www.jcb.com
Headquarter / Factory 1/ Warehouse :	23/7, Mathura Road, Ballabhgarh - 121004, Haryana, India
Tel. No.:	91-129-2232308/ 2232874/ 2232875/ 2232805 / 4299000
Fax No.:	91-129-2233453/ 2232407/ 2230194/ 2309050
Email :	delhi.marketing@jcb.com
Factory 2 :	Talegaon Floriculture and Industrial Park, Village AMBI, Navlakh Umbhre, Taluka Maval, Talegaon Dabhade – 410507, Maharashtra, India
Branch Office :	Located at: Pune Chennai Kolkata

DIRECTORS

As on 19.09.2014

Name :

Mr. Vipin Sondhi

Designation :

Managing Director and Chief Executive Officer

Address:

N – 43, Panchshila Park, New Delhi – 110017, India

Date of Birth/Age

27.04.1960

Qualification :

B. Tech (Mech), PGDM

Date of Appointment :

01.01.2014

DIN No.:

00327400

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1979PLC009431	JCB INDIA LIMITED	Managing director	01/01/2014	01/02/2006	-	Active	NO
2	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Managing director	23/09/2008	01/02/2008	-	Amalgamated	NO
3	U74999DL2004PLC125276	JCB CONSTRUCTION EQUIPMENT LIMITED	Director	25/09/2008	01/05/2008	-	Active	NO
4	U29199DL2005PTC132969	JCB WORLD BRANDS INDIA PRIVATE LIMITED	Director	25/09/2008	01/06/2008	-	Active	NO
5	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Alternate director	01/01/2014	03/09/2012	-	Active	NO

Name :

Mr. Mansingh Laxmidas Bhakta

Designation :

Director

Address:

4, Sagar Villa, 38, B. Desai Road, Mumbai - 400026, Maharashtra, India

Date of Birth/Age

03.12.1931

Qualification :

B.A. (Hons) LLB

Date of Appointment :

21.01.2003

DIN No.:

00001963

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L17110MH1973PLC019786	RELIANCE INDUSTRIES LIMITED	Director	27/09/1977	27/09/1977	-	Active	NO
2	L26942GJ1981PLC004717	AMBUJA CEMENTS LIMITED	Director	07/09/1985	07/09/1985	05/04/2013	Active	NO
3	U24220GJ1991PTC016598	MICRO INKS Private Limited	Director	27/06/2000	27/06/2000	01/05/2013	Active	NO
4	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	21/01/2003	21/01/2003	-	Active	NO
5	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Director	21/06/2004	21/06/2004	-	Amalgamated	NO
6	L28939PN1987PLC043953	BILCARE LIMITED	Director	31/12/2005	31/12/2005	31/07/2007	Active	NO
7	U45200MH1995PTC093041	LODHA DEVELOPERS Private Limited	Director	22/09/2009	01/08/2009	10/02/2012	Active	NO
8	U40103WB2002PLC145294	ABHIJEET POWER LIMITED	Director	25/11/2010	03/11/2010	03/01/2013	Active	NO
9	U29221GJ1991PLC014914	JYOTI CNC AUTOMATION LIMITED	Director	30/09/2013	17/09/2012	06/02/2014	Active	NO

Name :

Sir Anthony Paul Bamford

Designation :

Director

Address:

Daylesford House, Moreton In Marsh, Gloucestershire, Gl560yh, United Kingdom

Date of Birth/Age

23.10.1945

Qualification :

Engineer

Date of Appointment :

27.09.1993

DIN No.:

00560644

Name :

Mr. David Frederick Peter Miller

Designation :

Director

Address:

Sunnyhouse 208 Grindley Lane, Blythe Bridge Stoke On Trent, Staffordshire, ST119JS, United Kingdom

Date of Birth/Age

13.07.1953

Qualification :

Chartered Accountant

Date of Appointment :

29.09.2003

DIN No.:

00560666

Name :

Mr. Michael Hargreaves

Designation :

Director

Address:

16, Northesk Street, Stone, Staffordshire, England (UK), ST158EP

Date of Birth/Age

01.03.1957

Qualification :

Solicitor

Date of Appointment :

30.09.2006

DIN No.:

00684725

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29240PN2004FLC129486	JCB MANUFACTURING LIMITED	Director	30/10/2007	03/08/2006	-	Amalgamated	NO
2	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	30/09/2006	30/09/2006	-	Active	NO
3	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Director	25/04/2007	25/04/2007	-	Active	NO

Name :

Mr. Balaraman Pillaimani

Designation :

Alternate Director

Address:

H – 153, Sarita Vihar, New Delhi – 110076, India

Date of Birth/Age

21.06.1958

Qualification :

BE(Mechanical)

Date of Appointment :

16.06.2011

DIN No.:

03545572

Name :

Mr. Subirkumar Chawdhury

Designation :

Director

Address:

C – 12, Westend Heights, DLF City Phase, Gurgaon - 122004, Haryana, India

Date of Birth/Age

25.01.1959

Qualification :

BE (Mechanical)

Date of Appointment :

12.09.2012

DIN No.:

03633998

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	12/09/2012	15/09/2011	-	Active	NO
2	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Director	10/09/2012	16/01/2012	-	Active	NO
3	U74999DL2004PLC125276	JCB CONSTRUCTION EQUIPMENT LIMITED	Director	12/09/2012	16/01/2012	-	Active	NO

Name :

Graeme Angus Macdonald

Designation :

Director

Address:

Woodlane House, Mercaston, Ashbourne, Derbyshire, DE638L, United Kingdom

Date of Birth/Age

16.11.1967

Date of Appointment :

19.09.2014

DIN No.:

06799762

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1979PLC009431	JCB INDIA LIMITED	Director	19/09/2014	01/01/2014	-	Active	NO
2	U65923DL2007FTC162589	JCB FINANCIAL ADVISOR PRIVATE LIMITED	Director	29/09/2014	01/01/2014	-	Active	NO

MAJOR SHAREHOLDERS

As on 19.09.2014

Names of Shareholders	No. of Shares
J.C. Bamford Excavators Limited, United Kingdom	848994
J.C. Bamford Excavators Limited through Anthony Bamford	1
J.C. Bamford Excavators Limited through Michael Hargreaves	1
J.C. Bamford Excavators Limited through David Miller	1
J.C. Bamford Excavators Limited through Steve Ovens	1
J.C. Bamford Excavators Limited through Adrian Ross	1
J.C. Bamford Excavators Limited through Graeme Macdonald	1
Total	849000

Equity Share Break up (Percentage of Total Equity)

As on 19.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and trading of Excavators/Loaders, Construction Equipments, related spares and components.

Products :

Product Description	Item Code No. (ITC Code)
Excavators and Loaders	84295900

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :	Not Divulged
Customers :	Not Divulged
No. of Employees :	Information denied by management
Bankers :	Standard Chartered Bank, 17, Parliament Street, New Delhi, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Building No.8, Tower B, DLF Phase II, DLF Cyber City, Gurgaon, Haryana, India
PAN No.:	AAEFP1428R
Memberships :	--
Collaborators :	--
Holding Company :	J C Bamford Excavators Limited, United Kingdom
Fellow Subsidiaries:	JCB Construction Equipment Limited, India CIN No. : U74999DL2004PLC125276 JCB Financial Advisor Private Limited CIN No. : U65923DL2007FTC162589 · JCB Cab Systems Limited, UK · JCB Construction Equipment (Shanghai) Company Limited, China · JCB Defence Products Limited, UK · JCB Do Brasila Limited, Brazil · JCB Earthmovers Limited, UK JCB Heavy Products Limited JCB Hongkong Limited · JCB Inc., USA · JCB Material Handling Limited UK · JCB Landpower Limited, UK JCB Power Product Limited JCB Power Products India Private Limited · JCB Sales Asia Pacific PTE Limited, Singapore · JCB Power Systems Limited, UK · JCB Research, UK · JCB Sales Limited, UK · JCB World Brands India Private Limited, India · JCB Transmissions, UK
Associate :	Employees Superannuation Trust Kanga and Company
Others :	B Holdings Limited JCB Remarketing Limited
Enterprises with ultimate beneficial ownership and with which the Company has transactions during the year:	JCB Service, UK

CAPITAL STRUCTURE

As on 19.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.100/- each	Rs.450.000 Millions
56500000	Preference Shares	Rs.100/- each	Rs.5650.000 Millions
	Total		Rs.6100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
849000	Equity Shares	Rs.100/- each	Rs.84.900 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	84.900	88.500	88.500
(b) Reserves & Surplus	22,486.012	22,137.628	17,371.767
(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)	22,570.912	22,226.128	17,460.267
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	5.115	37.414
(c) Other long term liabilities	56.559	133.695	104.087
(d) long-term provisions	108.903	111.121	108.658
Total Non-current Liabilities (3)	165.462	249.931	250.159
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	7,776.570	6,521.900	6,451.177
(c) Other current liabilities	2,029.475	1,276.574	1,260.269
(d) Short-term provisions	788.961	888.267	853.230
Total Current Liabilities (4)	10,595.006	8,686.741	8,564.676
TOTAL	33,331.380	31,162.800	26,275.102
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7,862.862	7,754.281	6,210.159
(ii) Intangible Assets	40.987	62.005	45.969
(iii) Capital work-in-progress	2,255.516	392.514	533.922
(iv) Intangible assets under development	17.125	0.000	42.258
(b) Non-current Investments	0.500	0.500	0.500
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	61.701	1,301.259	1,246.911
(e) Other Non-current assets	1,616.182	0.000	0.000
Total Non-Current Assets	11,854.873	9,510.559	8,079.719
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	4,188.384	3,240.806	3,972.294
(c) Trade receivables	6,008.431	7,407.441	6,937.909
(d) Cash and cash equivalents	8,724.400	9,116.886	5,585.361
(e) Short-term loans and advances	2,466.416	1,823.153	1,666.369
(f) Other current assets	88.876	63.955	33.450
Total Current Assets	21,476.507	21,652.241	18,195.383
TOTAL	33,331.380	31,162.800	26,275.102

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		48,703.412	51,577.487	54,554.522
		Other Income		1,728.982	1,411.943	1,118.856
		TOTAL (A)		50,432.394	52,989.430	55,673.378
Less	EXPENSES
		Cost of Materials Consumed		30,288.499	31,144.690	32,952.116
		Purchase of Stock-in-trade		2,894.607	3,360.653	3,532.192
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(351.534)	439.546	(13.750)
		Employee Benefits Expenses		2,909.039	2,613.231	2,242.669
		Other Expenses		8,138.473	7,547.712	8,095.061
		TOTAL (B)		43,879.084	45,105.832	46,808.288
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			6,553.310	7,883.598	8,865.090
Less	FINANCIAL EXPENSES (D)			0.985	0.577	5.400
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			6,552.325	7,883.021	8,859.690
Less	DEPRECIATION/ AMORTISATION (F)			0.000	0.000	752.857
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			6,552.325	7,883.021	8,106.833
Less	TAX (H)			0.000	0.000	2,627.345
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			6,552.325	7,883.021	5,479.488
	EARNINGS IN FOREIGN CURRENCY
			Export of goods calculated on F.O.B. basis	8168.391	6953.847	5143.602
			Export of services	449.038	236.840	133.786
	TOTAL EARNINGS			8617.429	7190.687	5277.388
	IMPORTS
			Raw material, components and spare parts	NA	4515.153	4991.676
			Capital goods	NA	96.450	466.543
			Trading machines	NA	38.969	73.234
	TOTAL IMPORTS			NA	4650.572	5531.453
	Earnings / (Loss) Per Share (Rs.)			4350.37	5385.15	6038.53

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	13.45	15.28	10.04
Operating Profit Margin (PBDI/Sales)	(%)	13.46	15.28	16.25
Return on Total Assets (PBT/Total Assets}	(%)	21.10	25.62	31.55
Return on Investment (ROI) (PBT/Networth)		0.29	0.35	0.46
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.03	2.49	2.12

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	88.500	88.500	84.900
Reserves & Surplus	17371.767	22137.628	22486.012
Share Application money pending allotment	0.000	0.000	0.000
Net worth	17460.267	22226.128	22570.912
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	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	54,554.522	51,577.487	48,703.412
		(5.457)	(5.572)

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	54,554.522	51,577.487	48,703.412
Profit	5,479.488	7,883.021	6,552.325
	10.04%	15.28%	13.45%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	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	Yes
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

LITIGATION DETAILS:

IN THE HIGH COURT OF DELHI AT NEW DELHI

ITA Nos. 195/2014 and 202/2014

COMMISSIONER OF INCOME TAX -II

..... Appellant

Through: Mr. Sanjeev Sabharwal, Sr. Standing Counsel and Mr. Ruchir Bhatia, Jr. Standing Counsel.

Versus

JCB INDIA LIMITED

..... Respondent

Through: Mr. M.S. Syali, Sr. Advocate with Mr. Mayank Nagi and Mr. Harkunal Sinhg, Advocates.

CORAM:

HON'BLE MR. JUSTICE SANJIV KHANNA

HON'BLE MR. JUSTICE V. KAMESWAR RAO

ORDER

05.08.2014

CM No. 7855/2014 in ITA No. 195/2014

Exemption application is allowed, subject to all just exceptions.

ITA Nos. 195/2014 and 202/2014

Mr. Sanjeev Sabharwal, Sr. Standing Counsel states that he was not aware that the appeals are fixed for final hearing.

Re-list for arguments on 29th October, 2014.

Learned counsel for the respondent-assesse states that they want to file papers/documents, which were filed before the Assessing Officer/tribunal. Let them do so within two weeks.

SANJIV KHANNA, J.

V. KAMESWAR RAO, J.

AUGUST 05, 2014

VKR

$ 11

GENERAL INFORMATION

The Company is mainly engaged in the business of manufacturing and trading of Excavators/Loaders, Construction Equipments, related spares and components. The company has manufacturing plant in India.

MACRO-ECONOMIC REVIEW

The Indian economy has had lower growth and various structural weaknesses as it entered 2013-14 and these continued throughout the fiscal year. Real GDP growth for 2013-14 is estimated to be 4.9%.

Such a significant and sustained slowdown in growth for over the last two years has contributed to low business confidence which, in turn, has put a dampener on private sector investment in infrastructure projects. Besides, the stressed exchequer of the Government of India has prevented government backed investment impetus to infrastructure.

By the end of 2013-14, there have been some positive signals. Moderation in headline producer price inflation in terms of the Wholesale Price Index, reduction in Consumer Price Index inflation, reduction in Indias trade deficit during 2013-14 mainly driven by a reduction in imports, surge in foreign capital inflow auger well for the Indian economy.

According to the Economic Survey for 2013-14, the Indian economy is poised to overcome the sub-five per cent growth rate of the past two years. The Survey has ruled out any speedy return to a high growth rate of seven-eight percent. The Survey has pegged the GDP growth between 5.4 % and 5.9 % in 2014-15.

BUSINESS ENVIRONMENT AND OUTLOOK

The infrastructure sector has always been referred as the growth engine of the Indian economy. While the long term requirement for rapid infrastructure development in India remains a vital necessity, the sector faces several challenges. Delays in government and regulatory decision-making, execution impediments, land acquisition issues or environmental clearances have had a huge impact on the infrastructure projects.

Good infrastructure is a critical enabler for sustaining economic growth and can alone enable a 2% growth in GDP. It is estimated that with the investments planned by the Government, infrastructure spending is expected to grow from 7.2 percent of GDP in 2012 to 9 percent by 2017. The government has doubled the investment in the infrastructure sector in the coming five year plan (2013 2017) compared to the current one.

Nearly all of the infrastructure sectors present excellent opportunities, with roads and highways, ports and airports, railways and power standing out as particular bright spots, with astounding sums of investment planned in the coming years. Rural development will also be a key growth enabler in the future.

Given the complex nature of infrastructure projects, demand for technologically advanced and versatile construction equipment is now more evident than ever.

After all these years, mechanization has finally established a strong foothold in the Indian construction equipment industry.

With a large and well spread network of58 dealers in India and neighboring countries, 25+ regional & area offices, five parts center and presence at more than 57 0+ locations nationwide, The Company is well equipped to provide the best products and parts, support and services to its increasing number of customers. The Company continues to work closely with its dealer network to improve their infrastructure and provide the best services and support to the customers.

The Company is geared to maintain its leadership position in the market. Various steps taken by the Company have helped it to retain its leadership position in Backhoe segment while increasing its market share in Excavators, Wheeled Loaders, Compactors and Pick and Carry Cranes segments.

BUSINESS PERFORMANCE

The Sales and Other Income of the Company for the financial year under review were Rs.50432.400 Millions as against Rs.52989.400 Millions for the previous year. Profit before tax (PBT) and Profit after tax (PAT) amounted to Rs.5652.300 Millions and Rs.3719.200 Millions respectively during 2013-14, as against the PBT and PAT of Rs.7084.500 Millions and Rs.4765.900 Millions for the previous financial year.

The Company continues to focus on a superior financial performance through improved working capital management and efficient utilization of its assets.

The Company continues to be debt-free, and maintains sufficient cash to meet its strategic objectives.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90041234	12/05/1994	380,000.00	Canara Bank	Nehru Ground, Faridabad, Haryana, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· 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.62.39
UK Pound	1	Rs.94.17
Euro	1	Rs.73.62

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.