IR&BR Ultratech

RATING MODEL OF JK Tyre Ltd.
(JKTL)FY 2010 -11

Risk Category( Industry Risk)
1.Risk parameter : Industry

I.Risk Factor:Importance Characteristics
to the Economy
Range Actual Score
To be measured in terms of
size of the Industry
or the contribution to the
export,
Employment Generation
Yes Yes 5
Not Very Important 0
II.Risk Factor
Sensitivity of the Industry to Govt. Policies
Policies such as duties, prices

controls, licensing policy
as well as environment norms
affect the working of the
industry
No 6
Yes Yes 2
III. Risk factor: Growth Potential/Outlook
The outlook or the potential

for the industry
to grow with reference to the
Economic Growth
for next 3 years calculated on
an average annual basis
would give an idea of chances
of
the Industry to perform Well.
Positive Outlook Positive Outlook
6
Moderate 2
2.Risk parameter : Competitive forces
Gross Profit Margin
Range Actual Score
This aspect is to identify the
competition between various
Players in the market
whether multinational or
otherwise
Least Competition
Moderate
Competition(Oligopolistic
Market)
Yes
II.Risk Factor:Barriers 3
to entry for New Players
Some Industries Require long

gestation Period,
high cost of setting up a new
factory
or specialized technology
which could be costly to
acquire.
These acts as barriers
High Barriers Yes 6
No/ Medium Barriers III.Risk Factor: Threat of Imports 0
After the opening of the

economy
the imports forms a major
threats for
the domestic Industry. cheap
Chinese imports.
In Indian Conditions
unorganized sectors
whose cost of production is
less also triggers threat
No Threat of Imports Yes 6
Moderate Threat of Imports
3. Risk parameter: Industry Financial

I. Risk Factor: ROCE (average for last Three years)
>12% 6
10% and <12% 5
8% and <10% 8.04 4
6% and <8% 3
4% and <6% 2
2% and <4% 1
<2% 0

II. Risk Factor: Profit Margin (average for last Three years)
>17% 6
14% and <17% 5
11% and <14% 4
8% and <11% 3
5% and <8% 8.2 2
2% and <5% 1
<2% 0

III. Risk Factor: Profit Margin (average for last Three years)
The actual operating profit Margin of the Industry for last 3 years is to t be taken into con
>16% 6
14% and <16% 5
12% and <14% 12.53 4
10% and <12% 3
8% and <10% 2
6% and <8% 1
<6% 0

IV Risk Factor: Earning Stability
The ability of the Industry
to earn a stable income
over a period of 3 Years
Stable Business 6
Cyclical Business Yes 2
Weighted Average Score of Industry Risk Category
S. No. Risk Parameter Risk Score

1 Industry Characteristics 4.33
2 Competitive force 5.00
3 Industry Financials 3.04
Total
WS
010 -11
ristics
Weight Weighted Score
Reason: Cement Industry is an important contributor to

economic development and employees thousands of
people and a significantly contributes to government's tax
collection. However the proportion of export as a
percentage of domestic consumption is very low and hence
30 a score of 5 is assigned.
6
es
6 12
Per capita consumption is 200kg which is very low

compared to emerging economies where it averages 540kg.
High investment in infrastructure sector under rural
housing, smart city and urban development plans. It is
highly correlated with GDP growth and India is one of the
fastest growing economy in the globe.
Industry
6 36 Characteristics SWS
78
ces
There has been number of consolidations in Indian cement

industry and currently the top 5 players control more than
50% of the market where the total number of players is
more than 55. From past 5 years cement price data there is
no sign of price war which indicates an oligopolistic
structure and price discipline.
yers 6 18
es
The initial capital required to set up a cement plant is very

high and the gestation period is 3-4 years. Also, the
capacity utilization of the industry has been sub optimal
for the greater part of the decade and for new players it
becomes difficult achieve breakeven point. For new
entrants sourcing raw materials would be difficult due to
locked in contracts of existing players with limestone and
gypsum suppliers
6 36
es
The exports are a very low percentage of domestic

consumption and thus the threat of imports is minimal.
Cement being hygroscopic cannot be stored for more than
3 months snd hence imports are low as compared to other
commodity products
36 Competitive Forces SWS

6 90
6 24
s)
6 12
s)
to t be taken into consideration
6 24
Industry Financial
5 10 TW SWS
23 70
Category
Weight Weighted
Score
6 26.00
6 30.00
5 15.22
17 71.22
4.19
TW WS
18 4.33
TW WS
18 5.00
WAS
3.04
RATING MODEL OF JK Tyre Ltd.(JKTL)FY 2010 -11
Risk Category( Business Risk)
1.Risk parameter : Business Growth

I.Risk Factor:Business Growth in term of growth in Sales/Income/Receipts.
Range Actual Score

>12% 6
10% and <12% 5
8% and <10% 4
6% and <8% 3
4% and <6% 4.4 2
2% and <4% 1
<2% 0
II. Risk factor: Percentage increase in Net Profit Margin over the Previous years margin
>2% 6
1.5% and <2% 1.7% 5
1% and <1.5% 4
0.5% and <1% 3
0.25% and <0.5% 2
0% and <0.25% 1
<0% 0
2.Risk Parameter:Operating efficiency

I.Risk Factor:Whether Power, Transportation and/or any other u
required for the borrowers business is easily available at reasonab
Yes Yes 6
Moderate 3
No 0
II.Risk Factor: Whether Raw Material and or Labour/Other relevant inputs as required for t
easily available at reasonable cost.
Yes 6
Moderate Moderate 3
No 0
III. Risk Factor: Whether Marketing, Distribution Selling Storage arrangements as requi
business are adequate
Yes Yes 6
Moderate 3
No 0
IV. Risk Factor: Advantage available in terms of range and quality of the products/goods/ou
of the borrower's business.
Yes Yes 6
Moderate 3
No 0
Weighted Average Score of Business Risk Category
S. No. Risk Parameter Risk Score
1 Business Growth 3.50

2 Operating efficiency 5.25
Total
WAS
010 -11
th
come/Receipts.

6 12
us years margin
6
30
Business Growth
TW SWS WAS
12 42 3.5
iency
/or any other utilities
ble at reasonable cost.
6 36.00
puts as required for the business is
es
6
18
rangements as required for the
6 36.00
e products/goods/output/services
6 36 Operating Eficiency
TW SWS WAS
24 126 5.25
Category
Weight Weighted
Score
6 21.00
6 31.50
12 52.50
4.38
Weighted Score Rating
No of Slabs
6.00- 5.40 AAA
1
5.39 5.10 AA
2
5.09 - 4.50 A
3
4.50 3.30 BBB
4
2.39-1.00 B
6
0.9 > 0.00 C
7
8 0 D
Description
Overall weights assigned to the ra

Categories
An exceptionally high position of strength. Very High Financial Risk

degree of sustainability..Minimum Risk
1
A high degree of strength on a factor among the peer Industry Risk
group. High degree of sustainability..Marginal Risk 2
A moderate degree of strength with positive outlook Business Risk
Moderate Risk
3
A moderate degree of strength with stable or marginally Management Risk
negative outlook.Average Risk
4
A fundamental weakness with regard to the factor. Total
Unlikely to improve under normal
circumstances..High Risk
Caution & Not Acceptable JKTL Average

Weighted Score
Default
weights assigned to the rating categories are: S. No.
Risk Weight Weighted
Score Score
1
#REF! 6 #REF!
2
4.19 4 16.76
3
4.38 4 17.50
4
#REF! 4 #REF!
18 #REF!
6
#REF!
7
8
Weighted Average Score Credit Rating Description of risk
6.00 5.40 AAA Minimum risk
<5.40 5.10 AA Marginal risk
<5.10 4.20 A Modest risk
<4.20 3.30 BBB Average risk
<3.30 2.40 BB Acceptable risk
<2.40 1.00 B High Risk
< 1.00 C Caution

D Default
Income Statement,Balance Sheet
Income Statement, Balance Sheet Dec-02 Mar-03 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04
Q3 03 Q4 03 FY 2003 Q1 04 Q2 04 Q3 04 Q4 04
Income Statement
Revenue
Onsite (IT Services and Consulting) $ 110.3 $ 118.8 $ 410.4 $ 124.9 $ 129.7 $ 140.9 $ 159.9
Offshore (IT Services and Consulting) $ 79.8 $ 84.9 $ 305.1 $ 97.2 $ 110.2 $ 123.0 $ 130.3
Banking Business Unit $ 8.7 $ 10.3 $ 34.7 $ 8.5 $ 7.1 $ 7.3 $ 6.7
Progeon $ 1.7 $ 2.2 $ 4.3 $ 2.7 $ 3.7 $ 4.8 $ 5.9
Intra-company eliminations $ (0.4) $ (0.1) $ (0.7) $ (0.0) $ (0.0) $ (0.0) $ (0.1)
Total Revenue $ 200.0 $ 216.0 $ 753.8 $ 233.3 $ 250.8 $ 275.9 $ 302.7
Cost of revenues $ 110.2 $ 123.1 $ 415.2 $ 132.9 $ 140.7 $ 155.9 $ 172.8
Gross profit $ 89.8 $ 92.9 $ 338.6 $ 100.4 $ 110.0 $ 120.0 $ 129.9
Operating Expenses
Selling and Marketing $ 15.0 $ 14.9 $ 55.6 $ 17.4 $ 18.0 $ 20.8 $ 20.6
General and administrative $ 15.4 $ 17.4 $ 57.8 $ 17.7 $ 20.4 $ 20.6 $ 23.5
Selling, general and administrative expenses $ 30.3 $ 32.3 $ 113.4 $ 35.1 $ 38.5 $ 41.4 $ 44.0
Amortization of deferred stock compensation $ 1.2 $ 0.4 $ 4.2 $ 0.4 $ 0.4 $ 0.3 $ -
Amortization of intangible assets $ 0.9 $ 0.6 $ 2.4 $ 0.7 $ 3.3 $ 2.6 $ 0.3
Compensation arising from stock split $ - $ - $ - $ - $ - $ - $ -
Total operating expenses $ 32.5 $ 33.4 $ 120.0 $ 36.3 $ 42.2 $ 44.3 $ 44.3
Operating income $ 57.3 $ 59.5 $ 218.7 $ 64.0 $ 67.8 $ 75.7 $ 85.6
Equity in loss of deconsolidated subsidiary $ - $ - $ - $ - $ - $ - $ -

Other income, net $ 6.9 $ 5.5 $ 18.0 $ 5.3 $ 10.2 $ 8.8 $ 3.6
Income before income taxes $ 64.2 $ 65.0 $ 236.7 $ 69.3 $ 78.1 $ 84.5 $ 89.1
Provision for income taxes $ 11.9 $ 11.9 $ 41.8 $ 11.1 $ 13.3 $ 14.0 $ 12.4
Preferred stock dividends $ - $ - $ - $ - $ - $ - $ -
Net income before minority interest $ 52.3 $ 53.1 $ 194.9 $ 58.3 $ 64.7 $ 70.5 $ 76.8
Q3 03 Q4 03 FY 2003 Q1 04 Q2 04 Q3 04 Q4 04
Minority interest
Net income
Earnings Per American Depositary Share

Basic $ 0.20 $ 0.20 $ 0.74 $ 0.22 $ 0.25 $ 0.27 $ 0.29
Diluted $ 0.20 $ 0.20 $ 0.74 $ 0.22 $ 0.24 $ 0.26 $ 0.28
EPADS Excluding 1 time stock comp charges
Basic $ 0.20 $ 0.20 $ 0.74 $ 0.22 $ 0.25 $ 0.27 $ 0.29
Diluted $ 0.20 $ 0.20 $ 0.74 $ 0.22 $ 0.24 $ 0.26 $ 0.28
Weighted ADS used in computing EPADS

Basic 262.3 262.3 262.3 262.3 262.4 262.8 263.6
Diluted 266.7 266.8 265.9 264.3 265.7 268.7 270.0
Q3 03 Q4 03 FY 2003 Q1 04 Q2 04 Q3 04 Q4 04
Balance Sheet Data
Cash and Equivalents $ 308.6 $ 354.4 $ 354.4 $ 381.1 $ 376.0 $ 421.3 $ 444.6
Investments in Liquid Mutual Fund Units $ - $ - $ - $ 21.5 $ 98.3 $ 133.0 $ 217.6
Investments in certificate of deposits
Trade A/Cs Receivable, net of allowances $ 102.4 $ 109.1 $ 109.1 $ 121.9 $ 129.4 $ 153.0 $ 150.1
Deferred Tax Assets $ 0.9 $ 0.3 $ 0.3 $ 0.5 $ 0.1 $ 0.5 $ -
Prepaid Exp and other Current Assets $ 30.8 $ 24.4 $ 24.4 $ 25.2 $ 29.3 $ 35.6 $ 35.9
Unbilled Revenues $ - $ 19.7 $ 19.7 $ 21.3 $ 18.7 $ 20.4 $ 23.7
Current Assets $ 442.7 $ 507.9 $ 507.9 $ 571.6 $ 651.8 $ 763.9 $ 871.9
Property, Plant and Equipment, Net $ 150.7 $ 157.2 $ 157.2 $ 165.2 $ 172.7 $ 182.1 $ 228.4
Intangible Assets and goodwill $ 7.4 $ 6.5 $ 6.5 $ 5.9 $ 2.6 $ - $ 9.7
Deferred Tax Assets $ 6.4 $ 7.3 $ 7.3 $ 7.6 $ 6.8 $ 6.5 $ 7.4
Investments $ 4.6 $ 4.6 $ 4.6 $ 3.3 $ 3.3 $ 1.9 $ 0.5
Advance Income Taxes $ 3.3 $ 4.5 $ 4.5 $ 0.1 $ 0.1 $ 0.2 $ 0.1
Other Assets $ 20.3 $ 16.5 $ 16.5 $ 17.5 $ 16.9 $ 14.7 $ 14.3
Total Assets $ 635.4 $ 704.3 $ 704.3 $ 771.1 $ 854.3 $ 969.2 $ 1,132.2
Liabilities and Stockholders' Equity

Accounts Payable $ 0.1 $ 0.4 $ 0.4 $ 0.1 $ 0.2 $ 0.3 $ 1.0
Client Deposits $ 6.1 $ 3.2 $ 3.2 $ 2.9 $ 3.0 $ 21.2 $ 15.0
Other accrued Liabilities $ 37.4 $ 46.2 $ 46.2 $ 53.9 $ 60.1 $ 78.7 $ 99.5
Deferred tax liabilities
Income Taxes Payable $ - $ - $ - $ 4.6 $ 5.8 $ 14.3 $ 21.8
Unearned Revenue $ 11.6 $ 13.2 $ 13.2 $ 15.9 $ 15.6 $ 18.5 $ 14.7
Total Current Liabilities $ 55.3 $ 63.1 $ 63.1 $ 77.4 $ 84.7 $ 133.0 $ 152.0
Non Current Liabilities $ 5.0 $ 5.2 $ 5.2 $ 5.3 $ 4.4 $ 4.4 $ 5.0
Minority interest
Preferred Stock of Subsidiary $ 10.0 $ 10.0 $ 10.0 $ 10.0 $ 10.7 $ 10.8 $ 21.6
Common Stock $ 8.6 $ 8.6 $ 8.6 $ 8.6 $ 8.6 $ 8.6 $ 8.6

Additional Paid in Capital $ 126.1 $ 127.0 $ 127.0 $ 127.4 $ 128.8 $ 144.1 $ 157.2
Q3 03 Q4 03 FY 2003 Q1 04 Q2 04 Q3 04 Q4 04
Accumulated other comp. Income $ (37.2) $ (31.4) $ (31.4) $ (15.4) $ (6.6) $ (2.6) $ 40.1
Deferred Stock Compensation $ (3.9) $ (2.8) $ (2.8) $ (1.7) $ (0.7) $ - $ -
Retained Earnings $ 471.5 $ 524.6 $ 524.6 $ 559.5 $ 624.3 $ 670.9 $ 747.6
Loan to Trust $ - $ - $ - $ - $ - $ - $ -
Total Stockholders' Equity $ 565.1 $ 626.0 $ 626.0 $ 678.4 $ 754.4 $ 821.0 $ 953.6
Total Liabilities and Stockholders' Eqty $ 635.4 $ 704.3 $ 704.3 $ 771.1 $ 854.3 $ 969.2 $ 1,132.2
Income Statement, Balance Sheet Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Mar-05 Jun-05
Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06
Income Statement
Revenue
Onsite (IT Services and Consulting) $ 555.3 $ 172.7 $ 188.0 $ 206.7 $ 219.1 $ 786.4 $ 226.6
Offshore (IT Services and Consulting) $ 460.7 $ 146.7 $ 170.3 $ 192.2 $ 206.7 $ 715.9 $ 209.1
Banking Business Unit $ 29.5 $ 8.1 $ 11.2 $ 12.6 $ 15.7 $ 47.5 $ 22.2
Progeon $ 17.2 $ 7.2 $ 9.1 $ 12.0 $ 14.4 $ 42.6 $ 18.0
Intra-company eliminations $ (0.2) $ (0.0) $ (0.0) $ (0.1) $ - $ (0.2) $ -
Total Revenue $ 1,062.6 $ 334.6 $ 378.6 $ 423.4 $ 455.8 $ 1,592.3 $ 475.8
Cost of revenues $ 602.3 $ 189.6 $ 214.0 $ 240.5 $ 261.7 $ 905.9 $ 274.1
Gross profit $ 460.3 $ 144.9 $ 164.6 $ 182.9 $ 194.1 $ 686.5 $ 201.8

42.4%
Operating Expenses
14.3%
Amortization of deferred stock compensation $ 1.2 $ - $ - $ - $ - $ - $ -
Amortization of intangible assets $ 7.0 $ 0.3 $ - $ - $ 1.1 $ 1.3 $ -
28.1%
Other income, net $ 28.0 $ (0.2) $ 6.0 $ 10.6 $ 18.7 $ 35.0 $ 6.6
Preferred stock dividends $ - $ - $ - $ - $ - $ - $ -
Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06

Minority interest $ -
Net income $ 122.0

25.6%

Basic $ 1.03 $ 0.31 $ 0.36 $ 0.42 $ 0.47 $ 1.57 $ 0.45
Diluted $ 1.00 $ 0.31 $ 0.35 $ 0.40 $ 0.46 $ 1.52 $ 0.43
Basic $ 1.03 $ 0.31 $ 0.36 $ 0.42 $ 0.47 $ 1.56 $ 0.45
Diluted $ 1.00 $ 0.31 $ 0.35 $ 0.40 $ 0.46 $ 1.52 $ 0.43

Basic 262.8 265.3 266.3 267.4 268.7 266.9 269.6
Diluted 267.2 270.3 272.1 275.4 276.6 273.6 277.1
Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06

Balance Sheet Data
Investments in Liquid Mutual Fund Units $ 217.6 $ 185.0 $ 210.0 $ 244.0 $ 278.0 $ 278.0 $ 307.0
Deferred Tax Assets $ - $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.0
Unbilled Revenues $ 23.7 $ 30.0 $ 29.0 $ 29.0 $ 32.0 $ 32.0 $ 36.0
Current Assets $ 871.9 $ 712.0 $ 808.0 $ 943.0 $ 1,060.0 $ 1,060.0 $ 1,113.0
Intangible Assets and goodwill $ 9.7 $ 9.0 $ 8.0 $ 9.0 $ 8.0 $ 8.0 $ 8.0
Investments $ 0.5 $ - $ - $ - $ - $ - $ -
Advance Income Taxes $ 0.1 $ - $ - $ - $ - $ - $ -
Other Assets $ 14.3 $ 14.0 $ 22.0 $ 24.0 $ 26.0 $ 26.0 $ 35.0
Total Assets $ 1,132.2 $ 980.0 $ 1,108.0 $ 1,305.0 $ 1,454.0 $ 1,454.0 $ 1,557.0

Client Deposits $ 15.0 $ 11.0 $ 9.0 $ 8.0 $ 7.0 $ 7.0 $ 6.0
Deferred tax liabilities
Income Taxes Payable $ 21.8 $ 31.0 $ 28.0 $ 32.0 $ 23.0 $ 23.0 $ 31.0
Minority interest $ 10.0

Preferred Stock of Subsidiary $ 21.6 $ 20.0 $ 20.0 $ 22.0 $ 21.0 $ 21.0 $ -
Common Stock $ 8.6 $ 31.0 $ 31.0 $ 31.0 $ 31.0 $ 31.0 $ 31.0

Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06

Accumulated other comp. Income $ 40.1 $ (17.0) $ (15.0) $ 42.0 $ 33.0 $ 33.0 $ 38.0
Deferred Stock Compensation $ - $ - $ - $ - $ - $ - $ -
Retained Earnings $ 747.6 $ 620.0 $ 717.0 $ 796.0 $ 923.0 $ 923.0 $ 999.0
Loan to Trust $ - $ - $ - $ - $ - $ - $ -
Total Stockholders' Equity $ 953.6 $ 813.0 $ 921.0 $ 1,097.0 $ 1,253.0 $ 1,253.0 $ 1,369.0
Total Liabilities and Stockholders' Eqty $ 1,132.2 $ 980.0 $ 1,108.0 $ 1,305.0 $ 1,454.0 $ 1,454.0 $ 1,557.0
Income Statement, Balance Sheet Sep-05 Dec-05 Mar-06 Mar-06 Jun-06 Sep-06 Dec-06
Q1 FY99 Q2 06 Q3 06 Q4 06 FY 2006 Q1 07 Q2 07 Q3 07
Income Statement
Revenue
Onsite (IT Services and Consulting) $ 254.1 $ 270.3$ 291.0 $ 1,042.0 $ 330.7 $ 372.4 $ 402.8
Offshore (IT Services and Consulting) $ 230.5 $ 245.2$ 259.8 $ 944.6 $ 277.4 $ 312.1 $ 342.7
Banking Business Unit $ 18.8 $ 21.0$ 18.7 $ 80.7 $ 24.1 $ 27.8 $ 35.4
Progeon $ 20.4 $ 22.4$ 24.4 $ 85.2 $ 28.4 $ 33.9 $ 40.5
Intra-company eliminations $ (0.6) $ (0.6) $ (0.4) $ (0.7) $ (0.6)
Total Revenue $ 523.8 $ 558.9 $ 593.3 $ 2,151.8 $ 660.2 $ 745.5 $ 820.8
Cost of revenues $ 297.0 $ 318.8 $ 354.2 $ 1,244.1 $ 389.0 $ 423.0 $ 467.8
Gross profit $ 226.8 $ 240.1 $ 239.1 $ 907.8 $ 271.2 $ 322.5 $ 353.0

43.3% 43.0% 40.3% 42.2% 41.1% 43.3% 43.0%
Operating Expenses
15.4% 13.6% 14.0% 14.4% 15.3% 14.8% 14.3%
Amortization of deferred stock compensation $ - $ - $ - $ - $ - $ - $ -
Amortization of intangible assets $ - $ - $ - $ - $ - $ 1.2 $ 1.2
27.9% 29.4% 26.3% 27.8% 25.8% 28.3% 28.5%
Other income, net $ 9.1 $ (1.0) $ 16.0 $ 30.7 $ 28.9 $ 14.1 $ 13.2
Preferred stock dividends $ - $ -
Q1 FY99 Q2 06 Q3 06 Q4 06 FY 2006 Q1 07 Q2 07 Q3 07
Minority interest $ 1.4 $ 1.6 $ 1.6 $ 4.6 $ 1.7 $ 0.1 $ 0.3
Net income $ 137.8 $ 143.3 $ 152.1 $ 555.2 $ 174.2 $ 198.5 $ 217.9

26.3% 25.6% 25.6% 25.8% 26.4% 26.6% 26.5%

Basic $ 0.51 $ 0.53 $ 0.56 $ 2.04 $ 0.32 $ 0.36 $ 0.39
Diluted $ 0.49 $ 0.51 $ 0.54 $ 1.99 $ 0.32 $ 0.35 $ 0.38
Basic $ 0.51 $ 0.53 $ 0.56 $ 2.04 $ 0.32 $ 0.36 $ 0.39
Diluted $ 0.49 $ 0.51 $ 0.54 $ 1.99 $ 0.32 $ 0.35 $ 0.38

Basic 270.7 272.4 273.7 271.6 275.0 551.9 554.2
Diluted 278.3 279.9 280.6 279.0 281.4 564.9 566.9
Q1 FY99 Q2 06 Q3 06 Q4 06 FY 2006 Q1 07 Q2 07 Q3 07
Balance Sheet Data
Investments in Liquid Mutual Fund Units $ 531.0 $ 492.0 $ 170.0 $ 170.0 $ 358.0 $ 615.0 $ 498.0
Unbilled Revenues $ 41.0 $ 35.0 $ 48.0 $ 48.0 $ 57.0 $ 74.0 $ 72.0
Current Assets $ 1,250.0 $ 1,355.0 $ 1,509.0 $ 1,509.0 $ 1,268.0 $ 1,522.0 $ 1,727.0
Intangible Assets and goodwill $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 110.0 $ 109.0 $ 126.0
Investments $ - $ - $ - $ - $ - $ - $ -
Advance Income Taxes $ - $ - $ 18.0 $ 18.0 $ 19.0 $ 5.0 $ 9.0
Other Assets $ 32.0 $ 31.0 $ 27.0 $ 27.0 $ 33.0 $ 31.0 $ 31.0
Total Assets $ 1,734.0 $ 1,862.0 $ 2,066.0 $ 2,066.0 $ 1,938.0 $ 2,220.0 $ 2,517.0

Client Deposits $ 2.0 $ 3.0 $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 3.0
Deferred tax liabilities $ 1.0 $ - $ - $ - $ - $ -
Income Taxes Payable $ 18.0 $ 17.0 $ - $ - $ 1.0 $ 2.0 $ 2.0
Minority interest $ 12.0 $ 13.0 $ 15.0 $ 15.0 $ 2.0 $ 2.0 $ -

Preferred Stock of Subsidiary $ - $ - $ - $ - $ - $ - $ -
Common Stock $ 31.0 $ 31.0 $ 31.0 $ 31.0 $ 31.0 $ 62.0 $ 62.0

Q1 FY99 Q2 06 Q3 06 Q4 06 FY 2006 Q1 07 Q2 07 Q3 07
Accumulated other comp. Income $ 25.0 $ (6.0) $ 9.0 $ 9.0 $ (46.0) $ (49.0) $ 35.0
Deferred Stock Compensation $ - $ - $ - $ - $ - $ - $ -
Retained Earnings $ 1,137.0 $ 1,235.0 $ 1,387.0 $ 1,387.0 $ 1,296.0 $ 1,465.0 $ 1,612.0
Loan to Trust $ -
Total Stockholders' Equity $ 1,528.0 $ 1,639.0 $ 1,837.0 $ 1,837.0 $ 1,725.0 $ 1,955.0 $ 2,221.0
Total Liabilities and Stockholders' Eqty $ 1,734.0 $ 1,862.0 $ 2,066.0 $ 2,066.0 $ 1,938.0 $ 2,220.0 $ 2,517.0
Income Statement, Balance Sheet Mar-07

Q1 FY99Q4 07 FY 2007
Income Statement
Revenue
Onsite (IT Services and Consulting) $ 426.3 $ 1,533.2
Offshore (IT Services and Consulting) $ 359.4 $ 1,291.6
Banking Business Unit $ 32.5 $ 119.8
Progeon $ 44.7 $ 147.5
Intra-company eliminations $ (0.2) $ (1.9)
Total Revenue $ 862.7 $ 3,090.2
Cost of revenues $ 496.5 $ 1,777.3
Gross profit $ 366.2 $ 1,312.9

42.4% 42.5%
Operating Expenses
Selling and Marketing $ 61.7 $ 208.8
General and administrative $ 65.9 $ 249.0
Selling, general and administrative expenses $ 127.6 $ 457.8
14.8% 14.8%
Amortization of deferred stock compensation $ - $ -
Amortization of intangible assets $ 1.5 $ 2.9
Compensation arising from stock split $ - $ -
Total operating expenses $ 129.1 $ 460.7

Operating income $ 237.1 $ 852.2
27.5% 27.6%
Equity in loss of deconsolidated subsidiary $ - $ -
Other income, net $ 27.5 $ 83.7
Income before income taxes $ 264.6 $ 935.9

Provision for income taxes $ 6.1 $ 83.7
Preferred stock dividends 8.9%
Net income before minority interest $ 258.5 $ 852.2

Q1 FY99Q4 07 FY 2007
Minority interest $ - $ 2.1
Net income $ 258.5 $ 850.1

30.0% 27.5%

Basic $ 0.46 $ 1.53
Diluted $ 0.45 $ 1.50
Basic $ 0.46 $ 1.53
Diluted $ 0.45 $ 1.50

Basic 559.9 554.0
Diluted 569.9 566.1
Q1 FY99Q4 07 FY 2007
Balance Sheet Data
Cash and Equivalents $ 1,403.0 $ 1,403.0
Investments in Liquid Mutual Fund Units $ 6.0 $ 6.0
Trade A/Cs Receivable, net of allowances $ 565.0 $ 565.0
Deferred Tax Assets $ 2.0 $ 2.0
Prepaid Exp and other Current Assets $ 50.0 $ 50.0
Unbilled Revenues $ 74.0 $ 74.0
Current Assets $ 2,100.0 $ 2,100.0
Property, Plant and Equipment, Net $ 738.0 $ 738.0

Intangible Assets and goodwill $ 148.0 $ 148.0
Deferred Tax Assets $ 19.0 $ 19.0
Investments $ - $ -
Advance Income Taxes $ 33.0 $ 33.0
Other Assets $ 35.0 $ 35.0
Total Assets $ 3,073.0 $ 3,073.0

Accounts Payable $ 6.0 $ 6.0
Client Deposits $ 1.0 $ 1.0
Other accrued Liabilities $ 274.0 $ 274.0
Deferred tax liabilities $ - $ -
Income Taxes Payable $ 4.0 $ 4.0
Unearned Revenue $ 72.0 $ 72.0
Total Current Liabilities $ 357.0 $ 357.0
Non Current Liabilities $ 1.0 $ 1.0
Minority interest $ - $ -
Preferred Stock of Subsidiary $ - $ -
Common Stock $ 64.0 $ 64.0

Additional Paid in Capital $ 692.0 $ 692.0
Q1 FY99Q4 07 FY 2007
Accumulated other comp. Income $ 88.0 $ 88.0
Deferred Stock Compensation $ - $ -
Retained Earnings $ 1,871.0 $ 1,871.0
Loan to Trust
Total Stockholders' Equity $ 2,715.0 $ 2,715.0
Total Liabilities and Stockholders' Eqty $ 3,073.0 $ 3,073.0

Cash Flow Statements
Q1 FY03 Q2 FY03 Q3 FY03 Q4 FY03 FY 2003 Q1 04 Q2 04 Q3 04 Q4 04 FY 2004 Q1 05 Q2 05 Q3 05
OPERATING ACTIVITIES
Net income $42.8 $46.7 $ 52 $ 53 $ 195 $ 58 $ 65 $ 71 $ 77 $ 270 $ 83 $ 97 $ 112
Adjustments to reconcile net income to net cash provided by operating activities

(Gain)/loss on sale of property, plant and equipm $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.0 $0.0 $0.0
Depreciation $8.1 $9.3 $9.1 $10.6 $37.0 $8.9 $10.5 $11.4 $14.6 $45.3 $12.0 $13.0 $16.0
Minority interest
Gain on sale of mutual fund units
Amortization of Intangible Assets $0.2 $0.6 $1.1 $0.4 $2.4 $0.7 $3.3 $2.6 $0.3 $7.0 $0.0 $1.0 $0.0
Amortization of stock compensation expenses
Deferred tax expense / (benefit) -$0.1 -$1.4 -$0.4 -$0.5 -$2.4 -$0.3 $1.3 -$0.1 $0.0 $0.8 -$2.0 $0.0 -$1.0
Gain on sale of investment in deconsolidated subs $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Loss relating to deconsolidated subsidiary $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Provision for investments $0.0 $3.2 $0.1 $0.0 $3.2 $1.4 $0.0 $0.5 $0.2 $2.1 $0.0 $0.0 $0.0
Income tax benefit arising on exercise of stock options
Changes in assets and liabilities $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Trade accounts receivable -$15.9 -$9.3 -$6.6 -$5.8 -$37.7 -$10.0 -$5.9 -$22.7 $11.9 -$26.8 -$41.0 -$19.0 -$25.0
Prepaid expenses and other current assets -$8.5 -$3.7 -$2.4 $9.3 -$5.2 -$1.7 -$3.8 $5.4 -$8.0 -$8.1 $5.0 $0.0 -$6.0
Income taxes $3.5 -$7.4 $0.7 -$0.8 -$3.9 $9.0 $1.4 $9.8 $5.5 $25.9 $12.0 -$3.0 $2.0
Accounts payable $0.1 $0.3 -$0.2 $0.3 $0.4 -$0.3 $0.1 $0.1 -$0.4 -$0.5 -$1.0 $2.0 -$1.0
Client deposits -$0.6 $1.9 $2.5 -$2.9 $0.9 -$0.4 $0.1 $17.9 -$6.7 $10.9 -$4.0 -$2.0 -$1.0
Unbilled Revenue $0.0 $0.0 -$15.4 -$15.4 -$1.1 $2.9 -$1.6 -$0.8 -$0.7 -$7.0 $0.0 $2.0
Unearned revenue $5.8 $1.5 $0.7 $1.5 $9.5 $2.4 -$0.5 $2.9 -$4.7 $0.0 $7.0 $1.0 $3.0
Other accrued liabilities $7.1 $7.3 -$0.1 $8.5 $22.8 $6.2 $5.7 $17.5 $15.0 $44.4 -$17.0 $24.0 $6.0
Net cash provided by operating activities $42.4 $49.0 $56.7 $58.4 $206.4 $73.0 $79.6 $ 114 $ 104 $ 371 $ 47 $ 114 $ 107
Operating cash as a % of revenue $0.3 $0.3 28.33% 27.01% 27.38% 31.31% 31.76% 41.44% 34.24% 34.88% 13.92% 30.00% 25.37%
INVESTING ACTIVITIES
Expenditure on property, plant and equipment -$7.7 -$9.5 -$9.6 -$16.4 -$43.2 -$13.0 -$15.8 -$19.8 -$44.6 -$93.2 -$34.0 -$38.0 -$58.0
Payment for purchase of Philips Financial services, net of cash acquired
Acquisition of minority interest in subsidiary
Expenditure on intangible asset -$2.9 $0.0 -$1.2 $0.5 -$3.6 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Proceeds from sale of property, plant and equipm $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.0 $0.0 $0.3 $0.3 $0.0 $0.0 $0.0
Loans to employees -$2.6 -$1.2 -$1.2 -$2.3 -$7.2 $0.8 $1.0 $1.9 $0.2 $4.0 -$1.0 $2.0 $0.0
Proceeds from sale of investment in deconsolidat $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Purchase of investments -$0.1 $0.1 $0.0 -$0.1 -$0.1 -$0.1 $0.0 $0.1 $0.0 $0.0 $0.0 $0.0 $0.0
Investments in Liquid Mutual Fund Units $0.0 $0.0 $0.0 $0.0 $0.0 -$21.6 -$76.4 -$32.9 -$74.5 -$205.3 $20.0 -$44.0 -$32.0
Redemption of Liquid Mutual Fund Units $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $20.0 $12.0
Non-current deposits with corporations $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 -$8.0 -$3.0
Investments in certificate of deposit
Withdrawl of non-current deposits with corporations
Purchase of subsidiary, net of cash acquired $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 -$11.1 $0.7 -$10.4 $0.0 $0.0 $0.0
Payment towards IPRs
Proceeds from the issue of equity shares by sub
Net cash used in investing activities -$13.2 -$10.7 $ (12) $ (18) $ (54) $ (34) $ (91) $ (62) $ (118) $ (305) $ (15) $ (68) $ (81)
FINANCING ACTIVITIES
Proceeds from issuance of equity shares $0.1 $0.6 $1.5 $0.6 $2.8 $0.2 $0.9 $13.5 $12.5 $27.1 $18.0 $9.0 $40.0
Proceeds from issue of com. stk. by subsidiary $10.0 $0.0 $0.0 $0.0 $10.0 $0.0 $0.0 $0.0 $10.3 $10.3 $0.0 $0.0 $0.0
ADR issue expenses $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Payment of cash dividends -$15.5 -$1.1 -$17.4 $0.1 -$33.9 -$23.1 $1.6 -$20.5 -$5.1 -$47.2 -$188.0 -$1.0 -$33.0
Loan to trust $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Income tax benefit arising from exercise of options
Net cash (used in) provided by financing act -$5.4 -$0.6 $ (16) $ 1 $ (21) $ (23) $ 2 $ (7) $ 18 $ (10) $ (170) $ 8 $ 7
Effect of exchange rate changes on cash $0.0 $3.8 $0.1 $3.8 $7.7 $9.3 $2.9 -$0.8 $19.8 $31.2 -$24.0 -$2.0 $21.0
Effect of deconsolidation on cash $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Net increase in cash and cash equivalents during $25.0 $42.8 $30.2 $45.8 $143.9 $26.8 -$5.2 $45.3 $23.3 $90.2 -$162.4 $51.6 $54.4
Cash and cash equivalents at the beginning of the $210.5 $235.5 $278.3 $308.6 $210.5 $354.4 $381.1 $376.0 $421.3 $354.4 $444.6 $283.0 $335.0
Cash and cash equivalents at the end of the perio $235.5 $278.3 $308.6 $354.4 $354.4 $381.1 $376.0 $421.3 $444.6 $444.6 $283.0 $335.0 $389.0
Supplementary information:
Cash paid towards taxes $5.4 $16.5 $11.1 $12.4 $45.4 $2.1 $11.0 $4.2 $6.5 $23.7 $3.0 $21.0 $19.0
Non-cash transaction $5.0 $0.0 $0.0 $0.0 $5.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

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RATING MODEL OF JK Tyre Ltd.

(JKTL)FY 2010 -11

1.Risk parameter : Industry

Range Actual Score

Policies such as duties, prices

III. Risk factor: Growth Potential/Outlook

The outlook or the potential

Some Industries Require long

After the opening of the

3. Risk parameter: Industry Financial

3. Risk parameter: Industry Financial

3. Risk parameter: Industry Financial

3. Risk parameter: Industry Financial

Weighted Average Score of Industry Risk Category

S. No. Risk Parameter Risk Score

Reason: Cement Industry is an important contributor to

Per capita consumption is 200kg which is very low

Weight Weighted Score

There has been number of consolidations in Indian cement

The initial capital required to set up a cement plant is very

The exports are a very low percentage of domestic

36 Competitive Forces SWS

1.Risk parameter : Business Growth

Range Actual Score

2.Risk Parameter:Operating efficiency

Weighted Average Score of Business Risk Category

S. No. Risk Parameter Risk Score

1 Business Growth 3.50

Weight Weighted Score

puts as required for the business is

Overall weights assigned to the ra

An exceptionally high position of strength. Very High Financial Risk

Caution & Not Acceptable JKTL Average

6.00 5.40 AAA Minimum risk

<5.40 5.10 AA Marginal risk

<5.10 4.20 A Modest risk

<4.20 3.30 BBB Average risk

<3.30 2.40 BB Acceptable risk

<2.40 1.00 B High Risk

< 1.00 C Caution

Cost of revenues $ 110.2 $ 123.1 $ 415.2 $ 132.9 $ 140.7 $ 155.9 $ 172.8

Gross profit $ 89.8 $ 92.9 $ 338.6 $ 100.4 $ 110.0 $ 120.0 $ 129.9

Equity in loss of deconsolidated subsidiary $ - $ - $ - $ - $ - $ - $ -

Earnings Per American Depositary Share

Weighted ADS used in computing EPADS

Total Assets $ 635.4 $ 704.3 $ 704.3 $ 771.1 $ 854.3 $ 969.2 $ 1,132.2

Liabilities and Stockholders' Equity

Common Stock $ 8.6 $ 8.6 $ 8.6 $ 8.6 $ 8.6 $ 8.6 $ 8.6

Cost of revenues $ 602.3 $ 189.6 $ 214.0 $ 240.5 $ 261.7 $ 905.9 $ 274.1

Gross profit $ 460.3 $ 144.9 $ 164.6 $ 182.9 $ 194.1 $ 686.5 $ 201.8

Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06

Net income $ 122.0

Earnings Per American Depositary Share

Weighted ADS used in computing EPADS

Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06

Total Assets $ 1,132.2 $ 980.0 $ 1,108.0 $ 1,305.0 $ 1,454.0 $ 1,454.0 $ 1,557.0

Liabilities and Stockholders' Equity

Minority interest $ 10.0

Common Stock $ 8.6 $ 31.0 $ 31.0 $ 31.0 $ 31.0 $ 31.0 $ 31.0

Q1 FY99FY 2004 Q1 05 Q2 05 Q3 05 Q4 05 FY 2005 Q1 06

Cost of revenues $ 297.0 $ 318.8 $ 354.2 $ 1,244.1 $ 389.0 $ 423.0 $ 467.8

Gross profit $ 226.8 $ 240.1 $ 239.1 $ 907.8 $ 271.2 $ 322.5 $ 353.0

Net income $ 137.8 $ 143.3 $ 152.1 $ 555.2 $ 174.2 $ 198.5 $ 217.9

Earnings Per American Depositary Share

IR&BR Ultratech

IR&BR Ultratech