MIRA INFORM REPORT

Report Date :

06.04.2011

IDENTIFICATION DETAILS

Name :	ASIAN PPG INDUSTRIES LIMITED
Registered Office :	6 A, Shanti Nagar Estate, Santacruz (East), Mumbai-400055, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.02.1997
Com. Reg. No.:	11-105961
CIN No.: [Company Identification No.]	U24200MH1997PLC105961
TAN No.: [Tax Deduction & Collection Account No.]	MUMA11672D
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Automobile Parts Components Paints and Power Varnishes.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 6000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Yogesh Gupta
Designation :	Accounts Manager
Contact No. :	91-22-30568700
Date :	02.04.2011

LOCATIONS

Registered Office :	6 A, Shanti Nagar Estate, Santacruz (East), Mumbai-400055, Maharashtra, India
Tel. No.:	91-22-66958000
Fax No.:	91-22-66958888
E-Mail :	asol@vsnl.com sagar.khade@asianppg.com
Website :	www.asianppg.com
Area :	3500 sq.ft.
Location :	Owned
Head Office :	158, Vidyanagri Marg, Dani Wooltex Compound, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India.
Tel. No.:	91-22-30568700
Fax No.:	91-22-30568764
Email :	chetan@asiasppg.com customercare@asianppg.com
Factory:	· APPG – Ankleshwar, 2602, GIDC Industrial Estate, Ankleshwar-393002, Gujarat, India · APPG – LBS Marg, Post Box No. 7318, Bhandup, Mumbai-400078, Maharashtra, India. · APPG _ A -1, UPSIDC Industrial Area, Kasna II Village, greater Noida , District G Budh Nagar Noida-203207, Uttar Pradesh, India · APPG , P I Nos. 50-55, industrial Development Area, Phase –II, Patancheru , district Medaka, Andhra Pradesh, India Located at · Chakan in Pune, · Maharashtra (under construction)
Branches :	Located in all Capital Cities of India

DIRECTORS

AS ON 04.06.2010

Name :	Mr. John R. Alexander
Designation :	Director
Address :	403, Alpen Court, Wexford, USA - 15090
Date of Birth/Age :	31.08.1955
Date of Appointment :	02.11.2004
Name :	Mr. Ashwin S. Dani
Designation :	Director
Address :	Home Villa Co-operative Society Limited, 48, Krishna Sanghi Path, Mumbai – 400 007, India.
Date of Birth/Age :	24.10.1942
Date of Appointment :	01.08.1997
Name :	Mr. Viktor R. Sekmakas
Designation :	Alternate Director to Mr. John R. Alexander
Address:	House D7, Regalia Bay No.88, Wong Ma Kok Road, Stanley, Hong Kong
Date of Birth/Age :	04.04.1960
Date of Appointment :	02.11.2004
Name:	Mr. Manish M. Chokshi
Designation:	Director
Address:	402, Shivtirth No.2, B. Desai Road, Mumbai-400 026, Maharashtra, India
Date of Birth/Age :	09.12.1967
Date of Appointment :	08.08.2007
Name:	Mr. Mike Horton
Designation:	Alternate Director to Ms. John R. Alexander
Address:	House 72, Windsor Place, 2222 Jain He Road, Shanghai, china-203 336
Date of Birth/Age :	20.03.1959
Date of Appointment :	22.03.2009
Name:	Ms. Cynthia Niekamp
Designation:	Director
Address:	915 S Glenhurst Dr, Birmingham-48009, USA.
Date of Birth/Age :	13.05.1959
Date of Appointment :	22.03.2009

KEY EXECUTIVES

Name :	Mr. Sagar S. Khade
Designation :	Secretary
Address :	B-14, Golden Rock CHS, Sunder Nagar, Kalina, Mumbai-400098, Maharashtra, India.
Date of Birth/Age :	06.05.1979
Date of Appointment :	03.02.2006
Name :	Mr. Yogesh Gupta
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 04.06.2010

Names of Shareholders	No. of Shares
Asian Paints Limited, Mumbai, India.	14624997
PPG Industries Securities INC., USA	14624997
PPG Industries Securities INC Jointly With PPG Coatings (Hong Kong) Company Limited, USA	1
PPG Industries Securities INC Jointly With PPG Coatings (Malaysia), USA	1
PPG Industries Securities INC Jointly With PPG (Singapore) PTE, USA	1
Asian Paints (India) Limited Jointly With Ashwin Choksi	1
Asian Paints (India) Limited Jointly With Ashwin Dani	1
Asian Paints (India) Limited Jointly With Abhay Vakil	1
Total	29250000

AS ON 04.06.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Automobile Parts Components Paints and Power Varnishes.

Products :

Item Code No. (ITC Code)	Product Description
32089003	Synthetic Enamel, Other Colours

Exports :

Products :

• Automobile Parts

Countries :

• China
• Japan
• Indonesia

Imports :

Products :

• Raw Material

Countries :

• Korea
• Germany

Terms :

Selling :

L/C, Cash, Credit (30 days, 60 days, 90 days)

Purchasing :

L/C, Cash, Credit (30 days, 60 days, 90 days)

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Paints and Coatings	KL	10400.00	3200.00	2331.50
Paints and Coatings*	KL	Not Applicable	Not Applicable	15697.35

Note: * Produce by outside processors

GENERAL INFORMATION

Customers :

· Auto Giants

· Bajaj Auto Limited

· Bajaj Tempo Limited

· Fiat India Limited

· Ford India Limited

· General Motors India Limited

· Hero Honda Motors Limited

· Honda Siel Cars (India) Limited

· Hyundai Motor India Limited

· Kinetic motors company Limited

· Mahindra and Mahindra limited

· New Holland Tractor India private limited

· Steel Strips Wheels Limited

No. of Employees :

500 (in office + in factory)

Bankers :

· State Bank of India, Killick House, Fort, Mumbai-400001

• State Bank of India, Madame Cama Road, Nariman Point , Mumbai-400001, Maharashtra, India
• State Bank of India, Corporate accounts group, central office, express Towers, 20^th Floor, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Loans and advances from Banks
Cash Credit account	78.800	71.640
Working Capital Demand	200.00	250.000
Interest Accrued and Due	--	1.480
Foreign Currency Demand Loan	--	140.350
Total	278.800	463.470
Unsecured Loan
From Bank
Working capital demand loan	150.000	--
Foreign Currency Demand Loan	--	82.430
Total	150.000	82.430

Note: Secured by first charge on Movable Assets and Book Debts.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-66679000
Fax No.:	91-22-66679025
Joint Ventures Company :	v Asian paints Limited v PPG Industries Securities, Inc.
Holding Company:	PPG Industries, Inc.
Associates/Subsidiaries :	Faaber Paints Private limited (U24222TN1986PTC012894) PPG India Private Limited

CAPITAL STRUCTURE

AS ON 04.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- Each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29250000	Equity Share	Rs.10/- Each	Rs.292.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Expected Sales (2010-2011) : Rs 5500.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		292.500	292.500	292.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1450.340	1165.150	1020.840
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1742.840	1457.650	1313.340
LOAN FUNDS
1] Secured Loans		278.800	463.470	515.800
2] Unsecured Loans		150.000	82.430	0.000
TOTAL BORROWING		428.800	545.900	515.800
DEFERRED TAX LIABILITIES		58.290	51.440	17.370
TOTAL		2229.930	2054.990	1846.510
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		685.250	656.120	518.100
Capital work-in-progress		5.280	0.460	30.430
INVESTMENT		40.100	40.100	50.120
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1047.540	771.100	852.310
	Sundry Debtors	866.670	805.570	757.680
	Cash & Bank Balances	47.400	46.220	52.110
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	440.360	311.700	389.800
Total Current Assets		2401.970	1934.590	2051.900
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	701.070	445.940	608.070
	Other Current Liabilities	173.040	107.340	127.460
	Provisions	28.560	23.000	68.510
Total Current Liabilities		902.670	576.280	804.040
Net Current Assets		1499.300	1358.310	1247.860
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2229.930	2054.990	1846.510

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4435.350	3727.360	3823.320
		Other Income	69.560	15.580	22.560
		TOTAL (A)	4504.910	3742.940	3845.880
Less	EXPENSES
		Purchase of Trading Goods	602.040	535.830	561.530
		Manufacturing and other Expense	3556.450	2780.920	2709.650
		Increase/(Decrease) in Finished Goods	(150.920)	71.020	(1.610)
		TOTAL (B)	4007.570	3387.770	3269.570
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		497.340	355.170	576.310
Less	FINANCIAL EXPENSES (D)		23.950	37.980	22.030
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		473.390	317.190	554.280
Less/ Add	DEPRECIATION/ AMORTISATION (F)		52.890	47.300	43.090
	PROFIT BEFORE TAX (E-F) (G)		420.500	269.890	511.190
Less	TAX (H)		134.700	112.850	181.840
	PROFIT AFTER TAX (G-H) (I)		285.800	157.040	329.350
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1031.150	886.840	951.250
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	40.950
		Dividend	0.000	0.000	6.960
		Tax on Dividend	0.000	0.000	16.500
		Interim Dividend	0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		1316.340	1031.150	64.410
	EARNINGS IN FOREIGN CURRENCY		6.260	11.250	1.370
	IMPORTS
		Raw Materials	1208.860	799.670	623.870
		Capital Goods	5.440	11.150	20.120
		Others	598.900	529.820	422.900
	TOTAL IMPORTS		1813.200	1340.640	1066.890
	Earnings Per Share (Rs.)		9.75	4.93	11.26

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.34	4.20	8.56
Net Profit Margin (PBT/Sales)	(%)	9.48	8.51	14.11
Return on Total Assets (PBT/Total Assets}	(%)	13.62	10.75	19.89
Return on Investment (ROI) (PBT/Networth)		0.24	0.19	0.39
Debt Equity Ratio (Total Liability/Networth)		0.76	0.77	1.00
Current Ratio (Current Asset/Current Liability)		2.66	3.36	2.55

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors

Particulars	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)
Total Outstanding Dues to Creditors Other Than Micro Enterprises and Small Enterprises	701.070	445.940	608.070

Operations:

Riding on uptrend in purchasing power, cheaper financing and higher disbursement by public sector banks, CENVAT cuts as part of the government’s fiscal incentive packages, domestic sales of passenger vehicles grew by 25% during the year 2009-2010. Automakers supported this performance by introducing new models and offering attractive pricing. Exports too complimented the domestic growth story by registering a growth of 33%.

Overall, growth in passenger vehicle builds was at an impressive 28%. To gain share in a fiercely competitive market, car companies steadily improved specifications and upgraded the coatings that went on cars. Market for automotive OE coatings benefited from all these positive developments.

The impact of continuing efforts by customers to costs and rising raw material costs was arrested through product development, formulation efficiency, effective sourcing, substitution and cost reduction measures. These developments have resulted in improved topline performance during the year under review. Total gross sales after discounts but before excise

Duty increase to Rs.4768.820 Millions from Rs.4209.350 Millions in the previous year a growth of 13.03%. The profit after tax jumped to Rs.285.800 millions from Rs.157.040 millions representing a rise of 82%

The consolidated sales were Rs.4903.940 millions and the profit after tax was Rs.300.600 millions.

Bankers Charges Report as per Registry

Name of the company	ASIAN PPG INDUSTRIES LIMITED
Presented By	V.S. Ram
1) Date and description of instrument creating the change	Agreement of hypothecation of goods and assets for working capital loan, executed on 10^th August 1999 with State Bank of India
2) Amount secured by the charge/amount owing on the securities of charge	Rs.300.000 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	First charge on movable assets and book debts RM/Finished goods 25% Book Debts 50% Stores ands Spares 60%
4) Gist of the terms and conditions and extent and operation of the charge.	As mentioned in the agreement
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Corporate Accounts Group, Central Office, Express Towers, 20^th Floor, Nariman Point, Mumbai-400021, Maharashtra, India.
6) Date and brief description of instrument modifying the charge	Charge has been modified by reducing the working capital limit from Rs.370.000 millions to Rs.300.000 millions on 27rh March, 2001.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Working capital limit have been revised to Rs.300.000 millions with effect from 27^th March, 2001.

This form is for	Modification of charge
Charge identification number of the modified	90147326
Corporate identity number of the company	U24200MH1997PLC105961
Name of the company	ASIAN PPG INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	6 A, Shanti Nagar Estate, Santacruz (East), Mumbai – 400 055, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge Others Inventory Present and Future
Particular of charge holder	State Bank of India, Corporate accounts group Branch, Voltas House, 23, J N Heredia Marg, Mumbai – 400 001, Maharashtra, India
Email	kamala.mgmt@sbi.co.in
Nature of description of the instrument creating or modifying the charge	A. Second Supplemental Agreement of hypothecation of goods and assets for increase in overall limit (Form C.2A) dt.19.03.2008 modifying hypothecation charge on all present and Future Goods, Book-Debts And Movable Assets referred to in the Agreement dated 10th Aug1999 and First Supplemental Agreement of Hypothecation Dated 29.06.2007 with an increase from earlier Rs.450.000 Millions to Rs.700.000 Millions B. 2nd Supplemental Agreement of Loan for increase in overall limit (C.1A) C.CLB Order Dated 02.12.2008
Date of instrument Creating the charge	19.03.2008
Amount secured by the charge	Rs.700.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1% below SBAR Terms of Repayment On Demand Margin Raw Material -25%, Stores & Spares-60%, Stock In Process -33.33%, Finished Goods 25% and Receivables 50% Extent and Operation of the charge First charge, on the entire current assets of the Company both present and future as mentioned in the agreement.
Short particulars of the property charged	All present and future goods, book debts & all other moveable assets of the borrower including documents of the title to the goods, outstanding monies receivables etc. lying loose or in cases or stored in the borrower's factories, premises and godowns or held by any party for the borrower.
Date of latest modification prior to the present modification	29.06.2007
Particulars of the present modification	Vide Second Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the Overall Limit (Form C2 A) dated 19th March 2008, SBI increased credit facilities from Rs.450.000 Millions to Rs.700.000 Millions. Accordingly, hypothecation charge created in favour of the Bank over the said goods and assets to cover the increased limit has been revised from Rs.450.000 Millions to Rs.700.000 Millions.

FIXED ASSTES

· Leasehold land

· Factory Building

· Plant and machinery

· Computers

· Furniture and fixtures

· Office Equipments

· Vehicles

Trade References

v Steel Strips Wheels Limited

v Ford India Limited

v Hyundai Motors India Limited

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.44.45
UK Pound	1	Rs.71.58
Euro	1	Rs.63.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.