MIRA INFORM REPORT

Report Date :

15.03.2007

IDENTIFICATION DETAILS

Name :	PIDILITE INDUSTRIES LIMITED
Registered Office :	7^th Floor, Regent Chambers, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai – 400 021, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	18.07.1969
Com. Reg. No.:	11-14336
CIN No.: [Company Identification No.]	L24100MH1969PLC014336
TAN No.: [Tax Deduction & Collection Account No.]	MUMP06924B
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturing and selling of branded consumer products like adhesives, sealants, art material and construction paint and chemicals.

RATING & COMMENTS

MIRA’s Rating :

A

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 16000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. Financial position is good. Payments are always correct and as per commitments. The concern can be considered good for normal business dealings at usual trade terms and condition

LOCATIONS

Registered Office :	7^th Floor, Regent Chambers, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22822708/28367085/7089
Fax No.:	91-22-22043969
E-Mail :	1. anp@pidilite.com 2. info@pidilite.com
Website :	http://www.pidilite.com
Corporate Office:	Ramkrishna Mandir Road, Office Mathuradas Vasanji Road, Andheri (East), Mumbai – 4000059
Factory :	v Plot No. A-22, M. I. D. C. Mahad - 402309, Dist. Raigad, Maharashtra Tel. No. 91-2145-232043/44/45/46 Fax. No. 91-2145-232054/232048 v Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (East), Mumbai – 400 059, Maharashtra Tel. No. 91-22-28367085 Fax. No. 91-22-28364565 v Plot No. 78-79, G. I. D. C. Industrial Estate, Vapi - 396 195, Dist. Valsad, Gujarat Tel. No. 91-2638-230215/230521 Fax. No. 91-2638-230199 v Plot No. 23, G. I. D. C. Industrial Estate, Vapi 396 195, Dist. Valsad, Gujarat Tel. No. 91-2638-230520/231517 Fax. No. 91-2638-231085 v Plot No. 25,26,39,40 Jawahar Co-opeative Industrial Estate, Kamothe, Panvel - 410206, Dist. Raigad, Maharashtra Tel. No. 91-22-27421021/27421856 Fax. No. 91-22-2742332 v Plot No. 19, Taloja Industrial Estate, Taloja, Dist. Raigad, Maharashtra Tel. No. 91-22-27410376/77 Fax. No. 91-22-27410376 v Daman, Union Territory

DIRECTORS

Name :	Mr. B. K. Parekh
Designation :	Chairman
Name :	Mr. S. K. Parekh
Designation :	Vice Chairman
Name :	Mr. M. B. Parekh
Designation :	Managing Director
Name :	Mr. N. K. Parekh
Designation :	Joint Managing Director
Name :	Mr. M. A. Pai
Designation :	Director (w.e.f. 06.08.2001)
Name :	Mr. H. K. Parikh
Designation :	Director
Name :	Mr. R. M. Gandhi
Designation :	Director
Name :	Mr. N. J. Jhaveri
Designation :	Director
Name :	Mr. Bansi S. Mehta
Designation :	Additional Director (w.e.f. 25.07.2000)
Name :	Mr. Ranjan Kapur
Designation :	Additional Director (w.e.f. 17.10.2000)
Name :	Mr. Yash Mahajan
Designation :	Additional Director (w.e.f. 17.10.2000)
Name :	Mr. A. B. Parekh
Designation :	Whole Time Director
Name :	Mr. A N Parekh
Designation :	Whole Time Director
Name :	Mr. Amit Roy
Designation :	Whole Time Director
Name :	Mr. Santosh Kumar
Designation :	Whole Time Director
Name :	Mr. S. T. Dave
Designation :	Whole Time Director
Other Personnel :-
Name :	Mr. P. C. Patel
Designation :	Senior Vice President & Company Secretary

SHAREHOLDING PATTERN

Names of Shareholders	Percentage of Holding
Indian Promoters	71.79 %
Indian Public and Bodies Corporate	15.45 %
FIIS & Foreign Companies	8.95 %
UTI, Mutual Funds, Bank & Insurance Companies	3.81 %
Total	100 %

BUSINESS DETAILS

Line of Business :	Manufacturing and selling of branded consumer products like adhesives, sealants, art material and construction paint and chemicals.
Products :	Item Code No. Product Description 3506 Adhesives 3905 + 3906 Synthetic Resins 3204 Organic Pigments and Preparations based on Organic Pigments

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Dyestuffs	MT	3900	2364	12347c
	KL	--	--	3178d
Chemicals	MT	232735	126920	81417e
	KL	31260	17904	21377f

GENERAL INFORMATION

No. of Employees :

1600

Bankers :

· Indian Overseas Bank, Mumbai

· Corporation Bank, Mumbai

· HDFC Bank, Mumbai

Facilities :

SECURED LOANS	31.03.2006
Working Capital loans from Banks (Including Working Capital Demand Loan)	287.000
Total	287.000
Working Capital Loans from Banks are secured by hypothecation of stock of Raw Materials, Finished Goods, Packing Materials, Stock in Process and Book Debts. Further, these loans are collaterally secured by way of second charge on the entire plant & machinery of the company and land and building of the company’s unit at Kondivita, Mumbai, Maharashtra.
UNSECURED LOANS
Interest free sales Tax loan from Government of Gujarat	0.506
Interest free sales tax loan from Government of Maharashtra	265.368
Total	265.874

Banking Relations :	Satisfactory
Auditors :	Haribhakti & Company Chartered Accountants Wadia Ghandy & Company Solicitors & Advocates
Associates :	· Parekh Marketing Limited · Vinyl Chemical (India) Limited · Kalva Chemicals Limited
Subsidiaries :	Fevicol Company Limited
Memberships :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
27500000	Equity shares	Rs. 10 each	Rs. 275.000 millions
2500000	Unclassified shares	Rs. 10 each	Rs. 25.000 millions
	Total		Rs. 300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25239400	Equity shares	Rs. 10 each	Rs. 252.394 millions
Add:	Bonus shares issue suspense account		Rs. 0.006 million
	Total		Rs. 252.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital	252.400	252.400	252.400
2] Reserves & Surplus	3871.056	3322.036	2844.573
NETWORTH	4123.456	3574.436	3096.973
LOAN FUNDS
1] Secured Loans	287.000	159.385	196.350
2] Unsecured Loans	265.874	450.329	365.954
TOTAL BORROWING	552.874	609.714	562.304
Deferred Tax Liabilities	304.876	287.854	300.893
GRAND TOTAL	4981.206	4472.004	3960.170
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	2648.822	2248.486	2030.892
Capital work-in-progress	257.527	319.069	137.726
INVESTMENTS	358.554	184.331	149.959
CURRENT ASSETS, LOANS & ADVANCES
Inventories (Quick Assets)	1534.010	1299.487	1047.865
Sundry Debtors	1094.510	1083.727	971.953
Cash & Bank Balances	121.580	116.627	74.443
Other Current Assets	23.104	22.208	18.950
Loans & Advances	322.192	331.735	318.290
Total Current Assets	3095.396	2853.784	2431.501
Less:
Current Liabilities	985.437	822.458	546.319
Provisions	398.516	318.498	253.309
Total Current Liabilities	1383.953	1140.956	799.628
Net Current Assets	1711.443	1712.828	1631.873
MISCELLANEOUS EXPENSES	4.860	7.290	9.720
GRAND TOTAL	4981.206	4472.004	3960.170

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		9250.004	7795.472	6627.939
Other Income
Total Income		9250.004	7795.472	6627.939
Profit/(Loss) Before Tax		1312.600	1061.700	915.746
Provision for Taxation		405.800	295.900	301.769
Profit/(Loss) After Tax		906.800	765.800	613.977
Earnings in Foreign Currency :
	Export Earnings
	Commission Earnings	646.097	600.996	408.812
	Other Earnings
Total Earnings		646.097	600.996	408.812
Imports :
	Raw Materials
	Stores & Spares	1363.498	1178.319	946.697
	Capital Goods
	Others
Total Imports		1363.498	1178.319	946.697
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses
	Administrative Expenses
	Raw Material Consumed
	Purchases made for re-sale
	Consumption of stores and spares parts
	Increase/(Decrease) in Finished Goods
	Salaries, Wages, Bonus, etc.	1312.570	1061.690	5712.193
	Managerial Remuneration
	Payment to Auditors
	Interest
	Insurance Expenses
	Power & Fuel
	Depreciation & Amortization
	Other Expenditure
Total Expenditure		1312.570	1061.690	5712.193

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1st Qtr	2nd Qtr	3rd Qtr
Sales Turnover	2920.300	3120.000	2837.400
Other Income	22.000	44.000	42.100
Total Income	2942.300	3164.000	2879.500
Total Expenditure	2356.000	2648.300	2466.300
Operating Profit	586.300	515.700	413.200
Interest	06.000	16.800	22.500
Gross Profit	580.300	498.900	390.700
Depreciation	71.000	73.100	75.400
Tax	133.500	93.100	56.700
Reported PAT	379.400	333.200	241.900

200606 Quarter 1 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (20.50) million Consumption of Raw Materials Rs 1145.60 million Staff Cost Rs 238.30 million Other Expenditure - Packing Material Consumption Rs 338.40 million - Others Rs 615.50 million Tax Includes Provision for Current Tax (Includes Fringe Benefit Tax) Rs 133.50 million Deferred Tax Rs (3.60)million Extraordinary Items Includes VRS Expenditure Rs 0.60 million Donations Rs 38.10 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on July 25, 2006. 2. In June 2006 Pidilite USA Inc, Delware, a wholly owned subsidiary of the Company has acquired business and assets relating to Art Materials and Car Care products from two existing Companies in USA having combined annual sales turnover of approx. USD 19 million. 3. The equity shares of face value of Rs 10 each were sub-divided into ten equity shares of Re 1 each w.e.f. September 27, 2005. Accordingly, earning per share for the quarter ended June 30, 2005 has been restated with respect to the revised face value of equity shares, in accordance with AS-20 Earnings per Share issued by the Institute of Chartered Accountants of India. 4. Previous period's figures are regrouped wherever necessary.

200609 Quarter 2 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (81.20) million Consumption of Raw Materials Rs 1380.40 million Staff Cost Rs 226.90 million Other Expenditure - Packing Material Consumption Rs 411.10 million - Others Rs 682.00 million Donations Rs 28.50 million Tax Includes Provision for Current Tax (Includes Fringe Benefit Tax) Rs 93.10 million Deferred Tax Rs (0.50)million Extraordinary Items indicates VRS Expenditure EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 05 Complaints disposed off during the quarter 04 Complaints unresolved at the end of the quarter 01 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on October 17, 2006. 2. Previous period's figures are regrouped wherever necessary.

200612 Quarter 3 –

Extraordinary Items indicates VRS Expenditure EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter 01 Complaints Received during the quarter 03 Complaints disposed off during the quarter 03 Complaints unresolved at the end of the quarter 01 1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on January 23, 2007. 2. Pidilite International Pte Limited, Singapore, a wholly owned subsidiary (WOS) Company has incorporated Pidilite Innovation Centre Pte Limited a subsidiary in Singapore on December 20, 2006 to carry out research, development and related activities. 3. Previous period's figures are regrouped wherever necessary.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.15	0.18	0.16
Long Term Debt Equity Ratio	0.09	0.09	0.10
Current Ratio	1.67	1.71	1.76
TURNOVER RATIOS
Fixed Assets	2.48	2.44	2.29
Inventory	7.37	7.58	8.00
Debtors	9.59	8.66	8.72
Interest Cover Ratio	35.72	28.16	19.67
Operating Profit Margin (%)	15.56	15.41	17.75
Profit Before Interest and Tax Margin (%)	12.93	12.37	14.35
Cash Profit Margin (%)	11.12	11.23	12.36
Adjusted Net Profit Margin (%)	8.49	8.20	8.96
Return on Capital Employed (%)	30.52	28.13	30.78
Return on Net Worth (%)	23.03	21.87	22.29

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 109.20/-
Low	Rs. 107.20/-

LOCAL AGENCY FURTHER INFORMATION

History

Subject was established as a partnership firm under the name and style of “Parekh Dyechem Industries”, in 1959 by Mr. B. K. Parekh and his two brothers, S. K. Parekh and H. K. Parekh. It was converted into a private limited company in 1969. A group company Kondivita Industries was merged with the company in 1984. Its name was changed to PDI Chemicals Limited in 1988. In 1989, another group company, Pidilite Industries Limited was merged with PDI Chemicals, and the name of the merged entity was changed to Pidilite Industries. Triveni Chemicals, another group company, was also merged with Pidilite in 1992. While the Fevicol brand, launched in 1959, has been in existence for almost 40 years, the company’s consumer products division was set up in 1984, when the company decided to build up a strong distribution network.

The company has been a pioneer and market leader in the field of consumer and speciality chemicals in India, since its inception in 1959. The company’s proactive market – driven approach has given it a strong base between both consumer and industrial segments. The company has a wide range of products, which find application in construction, plastics, textiles, paper, leather, paints, engineering, nurtured over four decades. The company’s brand ‘Fevicol’ is a market leader in the synthetic adhesives market. The company has a diverse product range, a number of established brands and a large distribution network of dealers, retail outlets, offices and sales representatives spread throughout the country. The company has been awarded the status of Export House by the Government of India.

The company acquired the brand “Ranipal” along with the goodwill of the business, other assets and know-how from Indian Dyestuff Industries Limited in August 1999 for a consideration of Rs. 40 millions. Brands “M-Seal” and “Mr. Fixit” along with adhesives and sealants business of Mahindra Engineering and Chemical Products Limited, other assets and know-how were acquired in March 2000 for a consideration of Rs. 320 millions. During the year 1999-2000, the company issued bonus shares in ratio of 1:1.

During the year 2001, the company extended Ranipal brand to products such as stain removers and detergent enhances. The company had also plan to introduce a range of products for waterproofing as well as repairs and maintenance of buildings under the brand Dr. Fixit. The total capital expenditure incurred for modernization and upgradation of its plants were Rs. 299.800 millions. It has acquired the brands of Bullbond and Vitapon at a consideration of Rs. 66.400 millions from Parekh Marketing Limited. From the Kalva Chemicals Limited, the company has acquired Kalvyl, Tracol and Parvyl brands of Adhesives/Resins for a consideration of Rs. 16.900 millions.

Milestones

Year		Achievements
1959		Plants commissioned for Acron brand of pigment emulsion
1965		FEVICOL, established as carpenter’s preferred choice of synthetic adhesive
1973		First company in India to start production of violet pigment
1984		Consumer Products Division is born. Plans to set up a nation-wide distribution chain
1989		Fevicryl acrylic colours transform fabric and multi-surface painting market
1993		Pidilite makes a maiden public offering of equity shares
1995		Plants in Mumbai & Vapi acquire ISO 9001; plant at Mahad acquires ISO 9002 certification
1997		Fevicol ranked among the Top 15 Indian brands (by FE Brandwagon Year Book, 1997)
1999		"Ranipal", leading brand of optical whitener, acquired
2000		"M-Seal", leading brand of epoxy compounds, acquired
2000		Fevikwik “fish” commercial wins Golden ABBY for the best TV Commercial of the Century in India
2000		Fevicol campaign wins Silver ABBY for the Campaign of the Century in India
2001		Dr. Fixit range of Construction Chemicals launched
2002		"Steelgrip", leading brand of PVC insulation tape in India, acquired
2002		At the 2002 Cannes Awards, considered to be the Oscar of the advertising world, Fevicol 'Bus' TV commercial wins a Silver in the category for Household Maintenance Products

The company’ s proactive market driven approach has given it a strong base among both consumer and industrial segments. The company has a wide range of products, which find application in construction, plastics, textiles, paper, leather, paints, engineering, nurtured over four decades. The company’s brand, Fevicol, is a market leader in synthetic adhesives market. The company has a diverse product range, a number of established brands and a large distribution network of dealers, retail outlets, offices and sales representatives spread throughout the country.

Its product range includes:

· Fevicryl Exotica

· Acrylic Colours (Fabric)

· Fevicryl Fabric Glue

· Window Colours

· Acrylic Colours for Canvas

· Fevicryl Puff Ons

· Fevicryl Silk Colours

The company has participated in international exhibitions in Bangladesh, Singapore, USA, Spain and Germany to enhance export of products.

The company exports its products to Europe, USA, Canada, Latin America, Australia, New Zealand, South East Asia, SAARC Countries and Africa.

The company's manufacturing process include:-

· Different polymerisation techniques such as emulsion polymerisation, suspension polymerisation, solution polymerisation.

· A wide range of chemical synthesis steps like nitration, reduction, ethylation, chlorination, sulfonation and coupling-diazotization.

· Specialised physical process such as pigmentation, dispersion, size reduction, etc.

Awards

· The Company won the Special Gold Award for the Best Continuing Campaign.

· The Fevicol “Pretender” TV Commercial won ABBY Silver in the Homes/Décor/Leisure Category.

The company is in trade terms with:

· Alpack Paper Packaging Private Limited

· Bago Cans Private Limited

· Bharat Metal Industries

· Shetty Plast Private Limited

· The Bharat Vijay Iron Factory

· Nova Plast Industries Private Limited

· Poonam Plastic Industries

· Jamuna Plast Private Limited

· Nayakem Organics Private Limited

· Vallabh Industries

· Modern Packaging

The company's fixed assets of important value include goodwill, freehold land, leasehold land, buildings, plant & machinery, trademark, copyrights, furniture & fixtures and vehicles.

Financial Performance 

For the first time, the Gross Turnover of the Company crossed the Rs. 10000.000 Millions mark and recorded sales of Rs. 10442.400 Millions showing a growth of 17% over the previous year.  

The Operating Profit for the year (before VRS payment of Rs. 2.400 Millions) at Rs. 1604.500 Millions, grew by 19%. Net Profit at Rs. 906.800 Millions, after Prior Year Tax provision written back of Rs. 20.200 Millions, grew by 18%.

Income Tax for the current year is higher at Rs. 409.000 Millions (including Rs. 22.500 Millions for Fringe Benefit Tax) as against Rs. 345.100 Millions in the previous year. 

The Credit Rating Information Services of India Limited (CRISIL) has re-affirmed the 'P1+' rating to the Commercial Paper Programme of the Company for Rs. 550.000 Millions. 

Dividend

The Directors recommend the payment of a dividend of Rs. 1.25 per Equity Share of Re 1 each previous year Rs. 10 per Equity Share of Rs. 10 each), amounting to Rs. 315.500 Million year Rs. 252.400 Millions) out of the Current Year's profit on 252.400 Millions Equity Shares of Re 1 each (previous year 25.240 Million Equity Shares of Rs. 10 each). The dividend for the current year will be free of tax in the hands of Shareholders. The dividend payout amount has grown at a CAGR of 19.5% during the last 5 years. 

New Units in Himachal Pradesh 

Three units in Himachal Pradesh have become operational during the year for manufacture of different types of adhesives and other products. The fourth unit is likely to commence production in the third quarter of the current financial year.

Current Year Outlook

Barring unforeseen circumstances, the Company expects to perform well during the current year

Management Discussion and Analysis 

Pidilite Industries Limited achieved 17.4% growth in gross sales in 2005-2006. The Company achieved 23.6% growth in profit before tax, 26.1% growth in profit after tax (before deferred tax and prior year tax write back) and 18.4% growth in profit after tax (after deferred tax and prior year tax write back). 

Performance by Industry Segment 

Branded Consumer and Bazaar Products contributed to 75% of the total sales of the Company and grew by 21.4% during the year. 

Sales of Branded Adhesives and Sealants grew by 19.3% and contributed 55% to the total sales of the Company. Construction and Paint Chemicals grew by 29%, and Art Materials and other products grew by 21.8%. Exports of Consumer and Bazaar Products grew by 40.8% during the year. 

Speciality Industrial Chemicals contributed 25% to the total sales of the Company and grew by 6.8%. The low growth in this segment was mainly due to a 12.6% decline in exports. The Company plans to improve the growth rate of exports of its Speciality Industrial Chemicals. 

New Products 

Several varieties of speciality industrial colorants and industrial adhesives were launched during the year. 

The Dr. Fixit range of construction chemicals was expanded with Krystalline (a capillary waterproofing system for concrete), Damp free (an injection grout for rising dampness) and other products. 

M-Seal Wet Set, an M-Seal variant that cures on wet surfaces, and Motomax, a premium range of car care products, were also introduced. The Company's Hobby and Art Materials range continued to grow with the launch of Fevicryl Ceramic Colours, Fevicry Fabric Pens, Fevicryl Creative Packs and Fevicryl Suncatcher Kits. 

International Business and Exports

Exports of Consumer and Bazaar Products grew by 40.8%, to Rs. 318.500 Million. Exports of Speciality Chemicals declined by 12.6% to Rs. 343.900 Million. In order to achieve sustained growth in international business, the Company is expanding its distribution network in various countries and also deploying additional manpower. In addition to its overseas acquisition of Bamco in Thailand and Jupiter Chemicals LLC in Dubai, the Company has established two direct subsidiaries: one in the UAE (Pidilite Middle East Limited) and one in Brazil (Pidilite Do Brasil Desenvolvimento De Negocios Limited). Pidilite International Private Limited has established two step-down subsidiaries: one in Indonesia (PT Pidilite Indonesia) and the other in Bangladesh (Pidilite Speciality Chemicals Bangladesh Private Limited). 

Pidilite Subsidiaries Incorporate Company in Jakarta

Pidilite Industries Limited two whollyowned subsidiaries have jointly incorporated a company in Indonesia, PT Pidilite Indonesia (PTPI), for manufacturing synthetic resins, adhesives and chemicals The subsidiaries, Singapore based Pidilite International Private Limited, would hold a 99 per cent stake in PTPI, and UAE based Pidilite Middle East Limited would hold the remaining 1 per cent, Pidilite Industries informed the stock exchanges. PTPI, based in Jakarta, Indonesia, received approval from the concerned ministry of Indonesia on 01.03.2006, and is incorporated from the said date. PTI

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 records 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 records 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.43.13
UK Pound	1	Rs.85.36
Euro	1	Rs.57.64

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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