MIRA INFORM REPORT

Report Date :

10.06.2011

IDENTIFICATION DETAILS

Name :	ASAHI INDIA GLASS LIMITED (w.e.f 26.09.2002)
Formerly Known As:	ASAHI INDIA SAFETY GLASS LIMITED
Registered Office :	38, Okhla Industrial Area, Phase-III, New Delhi-110020, Delhi
Country:	India
Financials (as on):	31.03.2010
Date of Incorporation :	10.12.1984
Com. Reg. No.:	55-019542
Paid-up Capital :	Rs. 159.900 Millions
CIN No.: [Company Identification No.]	L26102DL1984PLC019542
TAN No.: [Tax Deduction & Collection Account No.]	DELA00705F
PAN No.: [Permanent Account No.]	AADCA7706R
Legal Form :	Public limited liability company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturing of Toughened Glasses and Laminated Glasses.
No. of Employees :	3000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 8100000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a successful Indo- Japanese joint Venture. It is a well established and a reputed company having satisfactory track. Directors are reported to be experienced and respectable businessmen. Trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered good for 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 – 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 DECLINED BY

Name :	Mr. Montu Burna
Designation :	Accounts Department

Name :	Mr. Sailesh
Designation :	Chief Financial Officer

LOCATIONS

Registered Office :	38, Okhla Industrial Area, Phase-III, New Delhi-110020, Delhi, India
Tel. No.:	91-11-41001690/ 92
Fax No.:	91-11-41002691
E-Mail :	gopal.ganatra@aisglass.com
Website :	www.aisgl.com www.asahiindia.com
Corporate Office 1 :	12, Basant Lok, Vasant Vihar, New Delhi – 110 057, Delhi, India
Tel. No.:	91-11-26142288/3536/3537/9403
Fax No.:	91-11-26142324/26148696 / 4062288/ 44
E-Mail :	slabroo@aisgl.com / raman.yadav@aisglass.com
Corporate Office 2 :	5^th Floor, Tower B, Global Business Park, Meharauli, Gurgaon Road, Gurgaon – 122 022, Haryana, India
Tel. No.:	91-124-28962212-19
Fax No.:	91-124-28962288/44
E-Mail :	mukhija@aisgl.com
Sales and Marketing Head Office :	C-203/B, Forture 2000, Bandra - Kurla Commercial Complex, Bandra (East), Mumbai - 400 051, Maharahstra, India
Tel. No.:	91-22-3062 0101,3062 0107
Fax No.:	91-22-3062 0119
Factory :	Works (Auto) 94.4 Kms. Stone, Delhi - Jaipur Highway, Village jaliawas, Tehsil Bawal, Dist. Rewari -123 501, Haryana, India Tel: 91-1284 - 260366, 260367,260774 Fax: 91-1284 – 260185 Plot No. T-16, MIDC Industrial Area, Taloja, Dist. Raigad – 410208, India Tel: 91-22-27410171-74 Fax:91-22-27410090 Plot No. F-76 to 81, SI.PCOT, Industrial Park, Irungattukottai, Sriperumpdur Taluk, District Kancheepuram, Tamil Nadu -602105, India Tel: 91-4111500442,500443 Fax: 91-4111500441 Works (Float) Plot No. T-7, MIDC Industrial Area, Taloja, Dist. Raigad -410208, India Tel: 91-22-27410171-74 Fax:91-22-27410090 Village- Latherdeva Hoond, PO: jhabreda Pargana - Mangalaur, Teh. Roorkee, Dist. Haridwar, Uttaranchal – 247667, India Tel: 91-1-332-224114 Sub Assembly Unit No. 28, Challighata Village Road, Anchepalya, Mysore Road, Bangalore-560074, Karnataka, India Tel No.: 91-80-28437139 Fax No.: 91-80-28437455 1301/B, GIDC, Halol, District- Panchmahal 389350, Gujarat, India Tel No. : 91-2676-225610 Integrated Glass Plant Plot –A, AIs Industrial Estate, Village Latherdeva Hoon, Mangular Jhabrera Road, PO: Jhabrera,Tehsil Roorkee, District Haridwar-247667, Uttarakhand, India Tel No.: 91-1332-224010/ 14/ 15/ 16/ 19 Fax No. : 91-1332- 224114
Zonal Office :	West C-203/B, Forture 2000, Bandra - Kurla Commercial Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India Tel: 91-22-3062 0101,3062 0107 Fax:91-22-30620119 North 0-986, New Friends Colony, New Delhi-110 065, Delhi, India Tel.: 91-11- 26311105/1186/1197 Fax: 91-11- 26311198 South and East Pettukola Towers, 4th Floor, 190 - A, Poonamalee High Road, Chennai, Tamilnadu, India Tel.: 91-44-2642 3698/2642 0716 Fax: 91-44-2642 0651
AIS GAS SOLUTIONS
Sales Office 1:	Gundecha Industrial Estate, 4^th Floor, Office No. 414, Akruti Road (Next To big Bazar), Kandivali (East), Mumbai-400101, Maharashtra, India
Tel. No.:	91-22-32472689
Fax No.:	91-22-67031181
Sales Office 2:	1104, 11^th Floor, Prestige Meridien-I, M G Road, Bangalore-560001, Karnataka, India
Tel. No.:	91-80-41512634/ 35
Fax No.:	91-80-41512636
Sales Office 3:	No. 145, 1^st Floor, 100 Feet Road, Aalam Centre, Senthil Nagar, Chennai-600094, Tamilnadu, India
Tel. No.:	91-44-23620213
Fax No.:	91-44-23620113

DIRECTORS

As on 31.03.2010

Name :	Mr. B. M. Labroo
Designation :	Chairman
Qualification :	M. A. (Political Science) from Punjab University
Experience :	In Marketing, Finance, Corporate Governance
Other Directorships :	United Spirits Limited (UB Group Company) Shield Autoglass Limited Samir Paging Systems Limited
Name :	Mr. Sanjay Labroo
Designation :	Managing Director and Chief Executive Officer
Qualification :	Graduate in Finance and Management from Wharton School of Business and Finance, Pennsylvania, USA
Other Directorships :	AIS Adhesives Limited AIS Glass Solutions Limited Asahi India Map Auto Glass Limited Automartindia Limited Ballarpur Industries Limited Crompton Greaves Limited Krishna maruti Limited Shield Autoglass Limited SKH Metals Limited
Name :	Mr. Surinder Kapur
Designation :	Director
Qualification :	Doctorate in Mechanical Engineering from Michigan State University, USA M.S. and a B.S. in Engineering from USA.
Other Directorships :	Sona Koyo Steering Systems Limited Cosmo Films Limited Greaves Cotton Limited Mahindra Sona Limited Sona Group Companies
Name :	Mr. Gautam Thapar
Designation :	Director
Qualification :	Graduate in Chemical Engineering from Pratt University, USA
Name :	Mr. Arvind Singh
Designation :	Director and Chief Operating Officer (Auto)
Qualification :	M.B.A. from International Management Institute, New Delhi
Experience :	22 years of experience in corporate planning and business development functions.
Name :	Mr. Rahul Rana
Designation :	Director
Qualification :	M.B.A. degree from the University of lllinois at Urbana Champaign, USA and a B.S. in Finance from S.R.C.C, University of Delhi.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	30,377,508	18.99
Bodies Corporate	18,218,000	11.39
Sub Total	48,595,508	30.39
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	4,168,000	2.61
Bodies Corporate	35,520,000	22.21
Sub Total	39,688,000	24.82
Total shareholding of Promoter and Promoter Group (A)	88,283,508	55.20
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	222,849	0.14
Financial Institutions / Banks	45,313	0.03
Foreign Institutional Investors	507,015	0.32
Any Others (Specify)	2,024	-
Foreign Bank	2,024	-
Sub Total	777,201	0.49
(2) Non-Institutions
Bodies Corporate	26,575,602	16.62
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	20,656,305	12.92
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	19,197,198	12.00
Any Others (Specify)	4,437,772	2.77
Directors & their Relatives & Friends	170,440	0.11
NRIs/OCBs	4,260,918	2.66
Trusts	6,414	-
Sub Total	70,866,877	44.31
Total Public shareholding (B)	71,644,078	44.80
Total (A)+(B)	159,927,586	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Toughened Glasses and Laminated Glasses.

Products :

Float Glass – Clear 7005.10

Float Glass – Tinted 7005.21

Product Description	ITC Code
Toughened (Tempered) Safety Glass	Ch. H. No. 7004-10
a) Laminated Safety Glass
b) Laminated Architectural Safety Glas	Ch. H. No. 7004-20
Float Glass - Clear	Ch. H No. 7004-10
Float Glass- Tinted	Ch. H No. 7004-21

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Toughened Glass	Sq. Meters	7412000	4890645
Laminated Glass	Nos.	3675000	2915877
Architectural Glass	Sq. Meters	1404000	326611
Float Glass	Cony. Sq.mts	71890000	54635132
Mirror Glass	Sq.mts	3650000	1318557
Reflective Glass	Cony. Sq.mts	--	1771178

GENERAL INFORMATION

Customers :

• Maruti Suzuki
• Hyundai
• Telco
• Toyoto Kirloskar
• Mahindra and Mahindra
• Ford India
• Honda Siel
• Hindustan Motors
• General Motors
• Fiat India
• Daewoo Motors
• Volvo
• Eicher Motors
• Fiat India
• Swaraj Mazda
• Reva
• UZ-Daewoo (Uzbekistan)
• Fiat India
• Piaggio Greaves

No of Employees:

3000 (Approximately)

Bankers :

• The Bank of Tokyo-Mitsubishi Limited
• The Jammu and Kashmir Bank Limited
• State Bank of India
• Standard Chartered Bank
• ICICI Bank
• CITI Bank N A
• Punjab National Bank
• HDFC Bank
• Corporation Bank
• Mizuho Corporate Bank Limited
• State Bank of Mysore
• ABN Amro Bank
• Mitsubishi (UFJ) Limited
• The Hongkong and Shanghai Banking Corporation Limited

Facilities :

SECURED LOANS	31.03.2010	31.03.2009
Particulars	Rs. (in millions)	Rs. (in millions)
Bank
Working Capital	3346.100	4537.000
Foreign Currency Term Loans	5139.400	6914.800
Rupee Term Loan	3741.000	1300.000
Others
Loan from Distt. Industries Centre
Government of Haryana (Interest Free)	55.000	90.500
Total	12281.500	12842.300

Notes:

1. Working Capital Loans are secured by way of first charge on the current assets of the Company, both present and future.

2. Foreign Currency Term Loan form banks are secured by way of pari-passu charge on specified movable and immovable assets (Installed/ yet to be installed) of the Company subject to prior charge created to secure working capital loans.

3. Rupee Term Loan of Rs.3101 Millions are secured by first pari-passu charge on fixed assets of plant at Rewari, Chennai, T-16 and T-17 Taloja and also equitable mortgage of landed property at Rewari and Taloja. The balance being Short Term Loan of Rs.639.200 Millions are secured by way of subservient charges on fixed assets of plant at Rewari, Roorkee and Chennai.

4. Loan form District Industries Centre is secured by way of first Pari-passu charge on fixed assets of plant at Rewari.

UNSECURED LOANS	31.03.2010	31.03.2009
Particulars	Rs. (in millions)	Rs. (in millions)
Short Term / Bridge Loans From Banks	281.300	909.400
From Others-Foreign Currency Loan (Interest Free)	2143.500	2421.300
Total	2424.800	3330.700

Banking Relations :

--

Auditors 1:

Name :

Jagdish Sapra and Company

Chartered Accountants

Address :

23, Prakash Apartments, 5, Ansari Road, Daryaganj, New Delhi, India

Internal Auditors :

Name :

GSA and Associates

Chartered Accountants

Subsidiaries :

• Float Glass India Limited

Associates :

§ ASI Welkin Auto Glass Services Limited

• Asahi India Map Auto Glass Limited
• Asahi Glass Company Limited, Japan
• Maruti Udyog Limited
• The Indo-Asahi Glass Company Limited
• B. M. Labroo and Associates
• AIS Glass Solutions Limited
• AIS Adhesive Limited
• Vincotte International India Assessment Services Private Limited
• Shield Autoglass Limted
• Samir Poging Systems Limited
• R. S. Estates Private Limited
• Nishi Electronics Private Limited
• Maltex Malsters Limited
• Essel Marketing Private Limited
• Allied Finance Services Limited
• Usha Memorial Trust, ACMA
• Krishna Maruti Limited
• Asahi Glass Machinery Company Limited
• Ashi Glass Phillipines, Inc.
• Glavernmas Pte Limited
• Glavermas Mirrors Pte Limited
• Glaverbel S.A
• Asahi Glass Ceramics Company Limited
• P.T. Asahimas Flat Glass TBK Indonesia
• AGC Automotive Thailand Company Limited

CAPITAL STRUCTURE

 As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs.1/- each	Rs.500.000 millions
600000	Preference Shares	Rs.100/- each	Rs.60.000 millions
9000000	Preference Shares	Rs.10/- each	Rs.90.000 millions
	Total		Rs.650.000 millions

Issued, Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
159927586	Equity Shares	Rs.1/- each	Rs.159.900 millions
	Total		Rs.159.900 Millions

Note:

* Of the above, 135463793 Shares are allotted as fully paid bonus shares by capitalisation of General Reserve.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		159.900	159.900	159.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1872.200	1859.900	2784.600
4] Foreign Currency Monetary Item Translation		12.600	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2044.700	2019.800	2944.500
LOAN FUNDS
1] Secured Loans		12281.500	12842.300	10726.200
2] Unsecured Loans		2424.800	3330.700	3188.100
TOTAL BORROWING		14706.300	16173.000	13914.300
DEFERRED TAX LIABILITIES		0.000	1200.800	284.400
TOTAL		16751.000	19393.600	17143.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11731.100	13496.800	12469.300
Capital work-in-progress		527.400	434.100	473.500
INVESTMENT		69.900	63.900	59.200
DEFERREX TAX ASSETS		269.700	1441.600	0.000
Impaired Assets held for disposal		12.500	0.000	10.900
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3192.000	3503.800	3631.300
	Sundry Debtors	1807.000	1761.000	1079.600
	Cash & Bank Balances	121.800	168.700	163.900
	Other Current Assets	136.200	0.000	142.100
	Loans & Advances	1082.500	1335.200	1145.700
Total Current Assets		6339.500	6768.700	6162.600
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1654.500	1915.100
	Other Current Liabilities	496.200	856.500	1999.500
	Provisions	48.400	39.900	32.800
Total Current Liabilities		2199.100	2811.500	2032.300
Net Current Assets		4140.400	3957.200	4130.300
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16751.000	19393.600	17143.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	12627.300	12182.100	9946.900
		Other Income	338.500	115.400	602.800
		TOTAL (A)	12965.800	12297.500	10549.700
Less	EXPENSES
		Materials and Manufacturing	7806.800	7675.400
		Personnel	895.600	822.500
		Selling, Administration and Others	1749.700	2371.700	8450.300
		Reversal of impairment loss	(1.000)	(1.400)
		Prior period adjustments	9.500	8.700
		TOTAL (B)	10460.600	10879.700	8450.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.600	1420.600	2099.400
Less	FINANCIAL EXPENSES (D)		1278.300	1243.300	898.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1262.700)	177.300	1200.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1244.800	1134.900	1005.000
	PROFIT BEFORE TAX (E-F) (G)		(17.900)	(957.600)	195.800
Less	TAX (H)		(28.200)	(556.000)	62.400
	PROFIT AFTER TAX (G-H) (I)		10.300	(401.600)	133.400
Add	TAX ADJUSTMENT OF EARLIER YEARS		2.000	(4.400)	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		621.000	1027.000	NA
	BALANCE CARRIED TO THE B/S		633.300	621.000	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	940.300	(1368.400)	694.300
	TOTAL EARNINGS		940.300	(1368.400)	694.300
	IMPORTS
		Raw Materials	1747.600	(1663.600)	1494.700
		Stores & Spares	373.000	(293.500)	230.300
		Capital Goods	117.300	(351.000)	629.800
		Traded Goods	23.900	(33.500)	49.100
		Others	42.900	--	0.000
	TOTAL IMPORTS		2304.700	(2341.600)	2403.900
	Earnings Per Share (Rs.)		0.08	(2.54)	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2010 1^st Quarter	30.09.2010 2^nd Quarter	31.12.2010 3^rd Quarter	31.03.2011 4^th Quarter
Net Sales	3268.500	3829.500	3944.200	4290.400
Total Expenditure	2648.500	3150.300	3264.400	3560.800
PBIDT (Excl OI)	620.000	679.200	679.800	729.600
Other Income	3.700	4.700	2.500	5.300
Operating Profit	623.700	683.900	682.300	734.900
Interest	307.500	314.300	308.900	347.300
PBDT	316.200	369.600	373.400	387.600
Depreciation	291.800	294.200	295.200	302.500
Profit Before Tax	24.400	75.400	78.200	85.100
Tax	8.600	25.600	25.300	52.200
Profit After Tax	15.800	49.800	52.900	32.900
Net Profit	15.800	49.800	52.900	32.900

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.08	(3.27)	1.26
Net Profit Margin (PBT/Sales)	(%)	(0.14)	(7.86)	1.97
Return on Total Assets (PBT/Total Assets}	(%)	(0.10)	(4.72)	1.05
Return on Investment (ROI) (PBT/Networth)		(0.01)	(0.47)	0.07
Debt Equity Ratio (Total Liability/Networth)		8.27	1.39	0.69
Current Ratio (Current Asset/Current Liability)		2.88	2.41	3.03

LOCAL AGENCY FURTHER INFORMATION

History

Subject is the largest integrated glass company in India. They manufacture a wide range of international quality automotive safety glass, float glass, architectural processed glass and glass products. They are transforming themselves from being a manufacturer of world class glass and glass products to a solutions provider by moving up the value chain of auto glass and architectural glass and providing design, products and services that make glass more versatile and user-friendly. 

Subject was incorporated in the year 1984 as Indian Auto Safety Glasses. The company was promoted as a joint vanture by Maruti Udyog, Asahi Glass Company, Japan and B M Labroo and Associates. Asahi Glass Company, Japan, provides the technical assistance to the company. 

The company has the following three Strategic Business Units. They are AIS Auto Glass, AIS Float Glass and AIS Glass Solutions Limited

Subject is the largest manufacturer of world class automotive safety glass in India and is one of the largest auto glass makers in Asia. Their customers include Maruti Udyog, Hyundai Motors, Tata Motors, Toyota, Mahindra and Mahindra, Honda, General Motors Ford India, Hindustan Motors, Fiat India, Volvo, Eicher and Piaggio. Their manufacturing facilities is located at Rewari in Haryana and Chennai In Tamilnadu. 

Subject is a premier manufacturer of international quality glass and value added glass like reflective glass and mirror. Their manufacturing plants are located at Taloja in Maharashtra and Roorkee in Uttarakhand. The company is also the commercial agent of AGC Float Glass, Europe in India since April 2007. 

Subject is the face of the architectural glass processing business of AIS. They have been supplying a wide range of high quality architectural processed glass, comprising of toughended glass, laminated glass, insulated glass units and value added glass products. Their processing facilities are located at Taloja in Maharashtra, Chennai in Tamilnadu and Roorkee in Uttarakhand. 

In the year 1986, the company started commercial production of toughened automotive glass with installed capacy of 260000 sq.mtrs. In the year 1990, they installed first printing line to produce automotive glass with black ceramic and heat lite printing. During the year 1993-94, they set a new plant to produce laminated safety glass. 

The company is the first Indian glass company to get the QS-9000 and ISO-9002 certification through TUV Bayren Sachsen, Germany for the production and servicing of automotive safety glass. During the year 2001, Floatglass became the subsidiary of AIS and in the year 2002-03, the company was merged with AIS. 

The company name was changed from Asahi India Safety Glass Limited to Asahi India Glass Limited with effect from 26th September 2002. During the year 2005-06, AIS Glass Solutions Limited became the subsidiary of AIS. The company increased the production capacity of Laminated Glass and Toughened by 660000 Nos and 1110000 sq mtr respectively. 

During the year 2005-06, the company commissioned Tempered Glass Manaufacturing unit and Laminated Windshields Manufacturing unit at Chennai in Tamilnadu. During the year 2006-07, the company increased the production capacity of Flaot Glass, Laminated Glass and Toughened Glass by 44520000 sq mtr, 410000 Nos and 720000 sq mtr respectively. Also, the commercial production of reflective glass and mirror at the Integrated Glass plant in Roorkee, Uttarakhand commenced on April 18, 2007 and May 25, 2007 respectively. 

During the year 2007-08, the production capaity of Toughened Glass, Laminated Glass, Architectural Glass and Mirror Glass increased by 2592000 sq mtr, 80000 Nos, 504000 sq mtr and 3650000 sq mtr respectively. The architectural glass processing plant in Roorkee in Uttarakhand commenced their operation in September 2007.  

During the year 2006-07, the company received award for 'Achieving Targets of Quality' and 'Achieving Targets of Delivery' from Toyota Kirloskar Motors Limited They received '5 Star Award' and award 'Best Quality Performance' from Hyundai Motors India Limited They also received Construction World's Award for the largest and most profitable glass company.

MANAGEMENT DISCUSSION AND ANALYSIS

Economic Overview

The Global Economy

Contrary to fears that prevailed in the beginning of the year, the global economy recovered reasonably well by the

end of 2009, though at widely differing rates of growth across regions. The International Monetary Fund (IMF) estimates that the global output will grow by four and a quarter percent in 2010 - this after a contraction of half a

percent in 2009. Massive infusion of funds by governments across the world - including special funding for the US

auto industry - staved off a deeper recession.

In Q1 of 2009, the US economy numbers showed a de-growth of 6.4% on a deseasonalised, sequential annualised basis. The figures for the next three quarters, however, showed sharp improvement: (-) 0.7% in Q2, followed by 2.2% and 5.6% growth in the second half of the year. Though lower in Q1 2009, growth is pegged at 3.2% and, after three consecutive quarters of a positive uptick, it may not be rash to state that the US economy is turning around.

The US car industry is still coming out of one of the worst times in decades. Overall sales of cars and trucks, which were hovering around the 17 million mark in 2006, fell to a total of around 13.4 million in 2008 and an even lower 10.6 million in 2009 (Chart A). About 690,000 of those sales in 2009 were made thanks to the 'cash for clunkers' program paid for with federal dollars, where the US government gave consumers subsidies to switch from older, fuel inefficient cars to new, smaller and more fuel efficient models. Two of the auto giants - GM and Chrysler - filed for bankruptcy, while a large number of dealerships, suppliers, parts manufacturers and other auto-related businesses also failed.

The Euro zone is a study in contrasts. While France and Germany are doing reasonably well, Greece (and possibly Portugal and Spain) have economies and budget deficits that give rise to grave concern. The European Union, along with the IMF, have launched an assistance programme for Greece that totals €750 billion; however, if Portugal, or indeed Spain, follows the same path that Greece has, the Euro may come under severe pressure.

Asian economies, boosted by stronger domestic demand and a more cautious approach to monetary and fiscal

policies in the past, have suffered less during the recession era; consequently, their 'bounce back' has been faster. China grew at 8.7% in 2009 - this in a year when most economies in the world would have been happy to be at zero growth; this year the Chinese economy is expected to grow in double digits - the Q1 2009 results reflect 11.9% growth. The other major Asian economies, with Japan being a notable exception, are projected to grow between 4.7% and 6.0%.

India

According to the latest published numbers, India's GDP growth for 2009-10 is estimated at 7.4% (Chart B). What is even more encouraging is that industrial production has been improving quarter on quarter; the March, 2010 Index of Industrial Production (IIP) registered an increase of 13.5%; this is the sixth consecutive month of increases. The manufacturing sector recorded 14.3% growth in Q3 2009-10 (the highest in eleven quarters), while the construction sector has grown by 8.7%. As a consequence, the overall IIP figure of 2009-10 has reached 10.4%. This rising demand in for manufactured goods (including automobiles) and the construction segment are

encouraging signs for Asahi India Glass Limited ('AIS' or 'the Company).

There has been some increase in exports; however, the rupee strengthening against the major currencies - especially the Euro, is causing concern to exporters. This is especially true where Indian exports are being pitted

against the Chinese, who had, until recently, kept their currency undervalued.

Inflation remains a worrisome factor. Both wholesale prices and consumer prices have been rising steadily over the past few months.

AIS: Financial Performance

2009-10 was a year that gave rise to cautious optimism in AIS. The Company's topline increased by 5.6%; more

importantly, the operating efficiency measures that had been put in place from 2007-08 onwards started showing

in the middle line, thus reflecting the success of the 'Look Within' initiatives.

The summarised financial highlights of AIS as astand-alone entity for 2009-10 are given below :

• Gross sales increased by 5.6% to Rs. 14297.100 Millions (Rs. 13539.800 Millions in 2008-09).
• Net sales grew 3.65%: from Rs. 12182.100 Millions in 2008-09 to Rs. 12627.300 Millions in 2009-10.
• Material Costs increased by 6.6% over last year to reach Rs. 3836.800 Millions. On the other hand, Power and Fuel Costs reduced by 8.2% from Rs. 2823.800 Millions in 2008-09 to Rs. 2593.300 Millions. Power is a significant input for glass manufacture and, to all intents and purposes, is a 'quasi' material cost. If both figures (i.e. Material Costs and Power and Fuel) are to be aggregated, the total material costs as a percentage to net sales has reduced from 52.74% to 50.92%, thus reflecting the effectiveness of the Company's cost and efficiency optimising measures.
• Operating Cash Profit was Rs. 145.800 Millions in 2008-09; it has reached Rs. 1137.500 Millions in 2009-10. In addition to the benefits that AIS has gained through its operating efficiencies and greater value margins in sales, this figure for 2009-10 has been boosted by increases in Other Operating Income (Rs. 249.800 Millions in 2009-10 vs. Rs. 95.100 Millions in 2008-09) and Other Income (Rs. 88.700 Millions in 2009-10 vs. Rs 20.300 Millions in 2008-09).
• Profit after tax for 2009-10 was Rs. 12.300 Millions, compared to a loss of Rs. 406.000 Millions in the previous year.

AIS AUTO GLASS

AIS Auto Glass is India's pre-eminent supplier of automotive glass. It has a dominant share of business among all automotive manufacturers in India, whether of Indian or global origin. During 2009-10, AIS Auto Glass continued its splendid performance in terms of delivery of quality products to its customers and maintained its position as a premium supplier of automotive glass to almost the entire Indian automotive industry.

Performance

AIS Auto Glass produces a wide range of glass fitments for a vehicle. The basic products are laminated (front) windscreens, tempered window glasses (sidelites) and the back glass (backlite). In addition to supplying these products to automotive manufacturers as original equipment (OE) components, AIS Auto Glass also sells its products in the fast growing after-sales service market (AFM market). Table 1 represents the share of business that AIS Auto Glass commands in the Indian market among various segments.

Operations

AIS Auto Glass has three production facilities. Two are located in North India at Bawal (Haryana) and Roorkee (Uttarakhand); the third unit is located in the south at Chennai (Tamil Nadu). AIS Auto glass also operates three sub assemblies cum warehouses at Bangalore (Karnataka), Halol (Gujarat) and Pune (Maharashtra). All these facilities are strategically located close to the key automotive companies to ensure seamless service to customers. Production and other activities at each of the above facilities have been smooth during the previous year.

During the year, AIS Auto Glass continued to make the incremental investments that were needed to expand capacities, keeping in view the burgeoning demands from its customers. All investments were carefully analysed to ensure achieving customer satisfaction, 'on time and in full delivery', without negatively impacting the SBU's cash flow.

The project work of AIS Auto Glass at the Toyota Suppliers Park' near Bangalore (Karnataka) has been progressing smoothly and the facility is expected to commence operations by August, 2010.

AIS Auto Glass has been recognised by its customers for its quality, service capabilities, on time delivery and overall positive supplier experience many times in the past.

Future Outlook

As India's growth momentum accelerates, the demand for automobiles is expected to increase as well - in fact, at an even faster pace. Since 2000, the Indian auto component industry has growing steadily; the past few months indicate that the growth trajectory is now moving much faster and sharper. From being a supplier to Indian auto manufacturers, the industry has been transforming itself into becoming a viable option for global sourcing for automobile majors across the world. Simultaneously, the automobile industry in India, fuelled by economic growth, more nuclear families, greater disposable income and easier consumer credit facilities, has been growing rapidly and is expected to continue on its growth path.

The entry of global auto companies in India, and their intention to make India as their global manufacturing and supply base also portends well for the growth of the automobile industry. Also, in order to be cost competitive in a value conscious Indian market, global automotive majors are increasingly indigenising their components, without sacrificing quality. This has created a strong 'manufacturer - supplier' partnership, where each helps the other to the benefit of both, as well as the end consumer. Auto component manufacturers are gaining perspectives on global best manufacturing practices, economies of scale and a competitive quality edge. With growth in infrastructure being an area of prime focus in the Eleventh Five Year Plan, road development will have to increase; and with it, a growth in automobile demand.

AIS Auto Glass is well positioned to exploit this growth opportunity with its inherent proven advantages. The Company's engineering skills and deep knowledge of the automotive glass sector helps it in partnering with its customers for new model developments; not only are these developed better, the turnaround time is also shorter. Its passion for quality ensures the least amount of rejections and on time delivery ensures the continuity of the customer's production line. AIS Auto Glass has forged its relationships with its customers over twenty three years

of partnership, collaboration and trust. The pre-eminence of AIS Auto Glass as the 'partner of choice' for all automobile majors in India stands unquestioned. AIS Auto Glass will continue to grow on these inherent strengths to deliver the highest level of customer satisfaction in the years to come.

AIS FLOAT GLASS

Performance

During 2009-10, sales of the Float SBU were at Rs. 4725.500 Million (Rs. 5890.900 Millions in 2008-09). The drop in topline reflects a conscious strategy of AIS Float Glass to shift from being a supplier of low value, high volume plain glass towards a provider of higher value-added products and solutions that offer better margins.

During the year, AIS Float Glass introduced the following new variants and colours of its product range in the market.

• AIS Opal™ (Solar Control Glasses) - Royal Blue and Cool Green;
• AIS Tinted Royal Blue and Tinted Cool Green;
• AIS Supersilver™ (Heat Reflective Glasses) Fern Green and Pacific Blue.

The market response to these new offerings has been encouraging.

Operations

AIS Float Glass continued to operate during the year from its plants at Taloja and Roorkee. Oprations were mooth and regular. During the last few years, AIS has increased its focus on value-added products. During the previous year, AIS Float Glass made considerable head way in sales of its value-added glass products; the SBU is now reaching a state where value-added glass comprises a substantial part of its product portfolio and sales basket.

Power and fuel are major inputs in the manufacture of float glass; hence, reduction of power and fuel cots per unit of output is a profitability determinant. During the year, AIS Float's Taloja plant successfully implemented and stabilised its operations after switching over to natural gas as its primary fuel source. This substitution of natural gas in the place of furnace oil has resulted in substantial savings, without impacting the quality of output; it has also ensured stability of fuel source supply and prices.

AIS Float Glass continued to expand its reach in the market by appointing several more dealers across India. It also continued to organise various meets, events and other sales promotional activities throughout the year.

Future Outlook

Although glass is a commodity know to mankind since 3,000 years, it is always on the cutting edge of innovation and subject to an array of new and diverse uses. The float glass industry is poised for increasing competition with the new entrants. The key differentiator shall remain the product mix of high value-added products. AIS Float Glass is constantly increasing its product portfolio and offering value-added, customer oriented products.

Glass has myriad uses and it is being used more and more innovatively, especially in the realty and construction sector. This is especially true with the Energy Conservation and Building Code (ECBC) norms coming into effect for buildings that have a floor area of 10,000 square feet or greater. ECBC norms stipulate that a minimum level of energy efficiency standards have to be maintained, including thermal performance requirements for walls, roofs, and windows. Glass is an itegral part of the green movement and address a host of issues raised under the

ECBC. These norms have created a new set of opportunities and a new market segment for AIS as a value-added glass solutions provider; together with the architect and the builders, AIS continues to create glass solutions that are used for green and energy efficient buildings.

It is also important for glass manufacturers to sensitise the end customer about the most appropriate glass solution that offers maximum value addition at the right price. This creation of customer awareness is something that AIS Float Glass takes seriously; the SBU is active in educating consumers about the usage of the correct variety of glass best suited for a given purpose.

With the growth in manufacturing, construction and retail coming back on track, the demand for glass, especially value-added glass products and solutions is expected to grow. AIS Float Glass is continuously looking at opportunities to create such value addition in the market with its end customers. In the near future, it is expected that the product shift to value added glass products will bear fruit in terms of both increased sales and improved profitability.

AIS GLASS SOLUTIONS

Performance and Operations

During 2009-10, AIS Glass Solutions continued to operate smoothly from its 3 architectural glass processing plants located at Roorkee- Uttarakhand (North India), Taloja - Maharashtra (West India) and Chennai-Tamil Nadu (South India) and several marketing offices across India.

Future Outlook

With all the necessary infrastructure and capacities in place, and after having won its customer confidence and appreciation, it is now time for AIS Glass Solutions to de-bottle some of the manufacturing inefficiencies and focus more on timely delivery to the customer. 2009-10 promises to be an upbeat year for the architectural glass processing industry and with its inherent strengths, AIS Glass Solutions is poised to significantly increase its market share.

PERFORMANCE OVERVIEW

The performance of the Company during 2009-10 was well on the projected recovery track. The strong macro environment, especially the huge upsurge of demand in the automotive sector, has further helped your Company to gather stronger momentum. Further the 'Look Within' initiatives of the management also resulted in generating greater operating efficiencies. As a result of the above, in 2009-10 the net sales of the Company increased 3.65% from Rs. 12182.100 Millions in 2008-09 to Rs. 12627.300 Millions in 2009-10. Operating profit has increased 7635% from Rs. 1420.600 Millions in the previous year to Rs. 2505.200 Millions in 2009-10. The Company posted

profit after tax (PAT) of Rs. 12.300 Millions as against a loss of Rs. 406.000 Millions in the previous year. A detailed analysis of Company's operations in terms of performance in markets, manufacturing activities, business outlook, risks and concerns forms part of the Management Discussion and Analysis, a separate section of this Annual Report.

Subsidiaries

The two subsidiaries of your Company-AIS Glass Solutions Limited and Integrated Glass Materials Limited carried on smooth operations during the year. Integrated Glass Materials Limited is in the process of ramping up its operations.

In terms of approval granted by the Central Government under Section 212(8), of the Companies Act, 1956, copies of the Balance Sheet, Profit and Loss Account, Reports of the Board of Directors and Auditors, of the subsidiaries of your Company - AIS Glass Solutions Limited ("GS") and Integrated Glass Materials Limited ("IGML"), have not been attached with the Balance Sheet of AIS. Further, pursuant to Accounting Standards (AS-21) Consolidated Financial Statement presented by your Company includes the financial results of GS and IGML duly audited by the statutory auditors. These consolidated financial statements have been prepared in strict compliance with the applicable accounting standards and listing agreement. However, the particulars of both the subsidiary companies, as directed by the Central Government in its above exemption, is attached along with statement as required under section 212 of the Companies Act, 1956.

This approval was solely sought for the purpose of substantial savings on printing and dispatch costs of this Annual Report. The Company hereby assures that the annual accounts of the subsidiary companies and related detailed information shall be made available to the investors seeking such information at any point of time. Further the annual accounts of the subsidiary companies are kept open for inspection by investors at the Corporate Office of AIS as well as at the registered offices of the subsidiary companies during working hours. The Company shall dispatch a hard copy of the details of accounts of the subsidiary companies to any shareholder on request. Further, the Company regularly files such data to the various regulatory and government authorities as required.

Awards

The Directors take pleasure in reporting the following awards/recognitions received by the Company during the year:

Maruti Suzuki India Limited Certificate of Appreciation

Vendor Performance Award Gold Category

Manufacturing Excellence Award

Toyota Kirloskar Motors Limited Achieving Target of Quality

Achieving Target of Delivery

Whirlpool of India Limited Best Supplier Award Gold Category

Tata Motors Limited Cost Efficiency Award

Mahindra and Mahindra Limited First Prize for Lowest PPM

First Prize for Best Delivery Logistics

Automotive Components Excellence Award

Manufacturers Association Bronze Medal

(ACMA)

AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER AND THE YEAR ENDED 31^ST MARCH, 2011

(Rs. In Millions)

Particulars	Fourth Quarter Ended	Year Ended
	(Audited)	(Audited)
	31.03.2011	31.03.2011
1. Gross Sales	4688.800	17090.700
2. Net Sales	4229.700	15182.100
3. Other Operating Income	60.700	150.500
4. Total Income ( 2+3)	4290.400	15332.600
5. Expenditure
a. Decrease/ Increase in Stock –in-trade and work in progress	72.800	(232.700)
b. Consumption of Raw Material	1292.900	4620.700
c. Purchased of Traded Goods	41.100	194.700
d. Power and Fuel	802.200	3039.900
e. Employees Cost	316.600	1141.200
f. Depreciation	302.500	1183.700
g. Other Expenditure	1035.200	3860.200
Total ( a to g)	3863.300	13807.700
6. Profit/ Loss form operations before Other income, Interest and Exceptional Item ( 4-5)	427.100	1524.900
7. Other Income/ Expenditure (Net)	5.300	16.200
8. Profit/ Loss before interest and Exceptional Item ( 6+ 7)	432.400	1541.100
9. Interest	347.300	1278.000
10. Profit/ loss from ordinary activities before tax ( 10+11)	85.100	263.100
11. Exceptional Item	0.000	0.000
12. Profit/ Loss form ordinary activities before tax (10+11)	85.100	263.100
13. Tax Expenses
a. Current tax	(17.600)	(53.400)
b. Deferred Tax Liability/ Assets	(49.100)	(108.200)
c. MAT Credit Entitlement	17.600	53.000
d. Earlier Years	(3.100)	(3.100)
Total ( a to d)	(52.200)	(111.700)
14. Net Profit/ Loss from ordinary activities after tax ( 12-13)	32.900	151.400
15. Extraordinary items (net of tax expenses)	--	--
16. Net Profit/ Loss for the Period (14-15)	32.900	151.400
17. Share of Profit of the Associates	--	--
18. Add/ Less: Minority Interest	--	--
19. Net Profit / Loss (16+17+18)	32.900	151.400
20. Paid up Equity Shares Capital (Face value of Rs. 1/- each)	159.900	159.900
21. Reserve (Excluding revaluation reserves)	--	--
22. EPS- Basic and Diluted (in Rs. Not annualized)	0.21	0.95
23. Aggregate of Public Shareholding
- Number of Shares (Face Value of Rs. 1/- Each)	71644078	71644078
- Percentage of Shareholding	44.80	44.80
24. Promoters and Promoter Group/ shareholding
a) Pledged/ Encumbered
- Number of Shares	18357314	18357314
- Percentage of Shares (As a % of the Total Shareholding of promoter and promoter group)	20.79	20.79
- Percentage of Shares (as % of the total share Capital of the company)	11.48	11.48
b) Non- Encumbered
- Number of Shares	69926194	9926194
- Percentage of Shares (As a % of the Total Shareholding of promoter and promoter group)	79.21	79.21
- Percentage of Shares (as % of the total share Capital of the company)	43.72	43.72

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	Fourth Quarter Ended	Year Ended
	(Audited)	(Audited)
	31.03.2011	31.03.2011
a. Informational about Primary Business Segments
1. Segment Revenue
Automotive Glass	2293.600	8427.100
Float Glass	2036.800	7271.000
Others	117.800	439.900
	4448.200	16138.000
Less: Inter- segment revenue (net of excise duty)	152.500	789.200
Total	4295.700	15348.800
2. Segment Result
Automotive Glass	267.400	931.500
Float Glass	167.700	625.300
Others	(2.700)	(15.700)
	432.400	1541.100
Less: Interest	347.300	1278.000
Total	85.100	263.100
3. Capital Employed (Segment Assets – Segment Liabilities)
Automotive Glass	6560.400	6560.400
Float Glass	9914.800	9914.800
Others	(14291.600)	(14291.600)
Total	2183.600	2183.600
4. Information about Secondary business segments
Revenue by Geographical Market	4343.400	15706.900
India	104.800	431.100
Outside India	4448.200	16138.000
Less: Inter- Segment revenue (net of Excise duty)	152.500	789.200
Total	4295.700	15348.800

Notes:

1. The Audited financial results duly reviewed by the audit committee have been by the board of directors at its meeting held on 16^th May, 2011

2. The consolidated results have been prepared in accordance with the accounting standard AS-21 consolidated financial statements and AS-23 accounting for investments in associates in consolidated financial statements issued by the institute of chartered accountants of India.

3. Provision for deferred tax for the quarter has been made in accordance with accounting standard AS-22, accounting for taxes on income issued by the institute of chartered accountants of India

4. As a brown filed expansion during the quarter the company has commissioned production of laminated windshields, at its existing plant at Taloja (Near Mumbai)

5. During the quarter on investor complaint was received by the company, which was duly attended. There was no investor complaint pending at the beginning of the quarter

6. The 26^th annual general meeting of the company will be held on 27^th July, 2011. The register of members and share transfer books of the company shall remain closed from 22^nd July, 2011 to 27^th July, 2011 (Both days inclusive) for the purpose of the annual general meetings.

7. Previous period figures have been regrouped. Whenever necessary, into order to make them comparable.

statement of Assets and liabilities

Rs. in Millions

Particular	As on 31.03.2011
Share Holders Funds:
Capital	159.900
Share Application Money (Pending Allotment)	0.000
Reserves and Surplus	2023.700
Minority Interest
Capital	0.000
Reserves and Surplus	0.000
Loan Funds
Secured Loan	13036.500
Unsecured Loans	2312.300
Foreign Currency Monetary Item Translation Difference Account	0.000
Total	17532.400
Fixed Assets	12236.600
Investments	83.900
Current Assets, Loan and Advances
Inventories	3800.000
Sundry Debtors	2388.700
Cash and Bank Balances	216.800
Other Current Assets	155.500
Loans and Advances	1369.800
	7930.8
Current Liabilities and Provision
Liabilities	2816.900
Provision	63.500
Deferred Tax Assets (Net)	161.500
Total	17532.400

Fixed Assets:

• Freehold Land
• Leasehold Land
• Building
• Plant and Machinery
• Electrical Installation and Fittings
• Furniture and Fixtures
• Miscellaneous Assets
• Vehicles
• Computer Software
• License Fee
• E Mark Changes

WEBSITE DETAILS:

Company Profile:

AIS is the largest integrated glass company in India, manufacturing a wide range of international quality automotive safety glass, floatglass, architectural processed glass and glass products.

AIS is transforming itself from being a manufacturer of world-class glass and glass products to a solutions provider by moving up the value chain of auto glass and architectural glass and providing design, products and services that make glass more versatile and user-friendly.

AIS has the following three Strategic Business Units (SBUs) :

• Automotive Glass Unit – AIS Auto Glass
• Float Glass Unit – AIS Float Glass
• AIS Glass Solutions Limited – AIS Glass Solutions

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia.  It meets over 80% automotive glass requirement of the Indian passenger car industry.

AIS Float Glass is the leading manufacturer of international quality floatglass in the country. Prior to its merger with AIS, it was known as Floatglass India Limited

AIS Glass Solutions is a value addition in the architectural glass business of AIS, addressing the following segments:

- - Architectural processing and Glass Solutions

- - Product and Knowledge Development

- - Glass Services - Sales and Marketing

The market and technology leader in the Indian Glass Industry, AIS continues to add to its customer base and service offerings, while maintaining and enhancing product quality

Its ongoing efforts, to provide high quality products and reliable and excellent service to its customers, are the key factors for AIS’s sustained success and leadership position in the Indian glass industry.

AIS recorded gross sales and operating profits of Rs. 11742 millions and Rs. 2046 millions respectively for the year ended 31st March, 2008.

Collaborators:

ASAHI GLASS COMPANY, LIMITED, JAPAN

Asahi Glass Company Limited, Japan, was established in 1907. Today, it is one of the leading glass producers of the world. AGC has a global network of over 350 subsidiaries and affiliates in Japan and 20 and above other countries. The group’s operations comprise of flat glass, automotive glass, and have recently diversified into display glass, chemicals, electronics and energy.

AGC has evolved as a top multinational glass manufacturer with a leading share of the global market in most key glass products. AGC group is the largest glass manufacturer of the world with 12% global market share in the flat glass segment and 30% global market share in the automotive glass segment. It has further captured the top share in CRT glass, TFT display glass and PDP glass in the display field as well.

For the year 2007, the AGC Group has recorded net sales of 1681 billions of yen, and with Operating Net Income of 69 billions of yen.

Position:

AIS Auto Glass

AIS Auto Glass is overwhelmingly the ‘first choice’ supplier for most automotive manufacturers in India. Hence, AIS Auto Glass is either the sole or a leading supplier of auto glass to most passenger car manufacturers in India, supplying about 80% of their auto glass requirement.

Apart from supplying to OEMs in India, AIS Auto Glass has significant presence in the domestic after-market with a market share of 43%. It also exports auto glass to the after-markets in Europe and Pakistan.

AIS Float Glass

AIS Float Glass enjoys 31% market share in the Indian float glass market.

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.44.72
UK Pound	1	Rs.73.47
Euro	1	Rs.65.38

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.