MIRA INFORM REPORT

Report Date :

02.11.2011

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
Capital Investment / Paid-up Capital :	Rs.292.500 millions
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.
No. of Employees :	Not Available

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

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
E-Mail :	chetan@asiasppg.com customercare@asianppg.com
Factory 1 :	· 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 20.05.2011)

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

DIN No:

00009126

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L25209MH1961PLC012223	Resins And Plastics Limited	Director	13/01/1970	13/01/1970	-	Active	NO
2	L99999GJ1978PLC022924	Gujarat Organics Limited	Director	16/08/1979	16/08/1979	-	Active	NO
3	L28992MH1991PLC168235	Hitech Plast Limited	Director	13/01/1992	13/01/1992	-	Active	NO
4	U24200MH1997PLC105961	Asian Ppg Industries Limited	Director	1/8/1997	1/8/1997	-	Active	NO
5	U24220MH2001PLC133523	Asian Paints Industrial Coatings Limited	Director	########	########	28/06/2007	Active	NO
6	U65990MH1992PTC065289	Sbi Funds Management Private Limited	Director	24/10/2002	24/10/2002	24/10/2008	Active	NO
7	L24220MH1945PLC004598	Asian Paints Limited	Director	26/06/2009	18/12/2003	-	Active	NO
8	L24230GJ1993PLC019050	Sun Pharmaceutical Industries Limited	Director	28/01/2004	28/01/2004	-	Active	NO
9	U65990MH1979PTC021049	Geetanjali Trading And Investments Private Limited	Director	9/2/2007	9/2/2007	-	Active	NO
10	U85100MH1991PLC063096	Wockhardt Hospitals Limited	Director	9/9/2008	30/07/2007	8/5/2009	Active	NO
11	U66000MH2008PLC181725	Rangudyan Insurance Broking Services Limited	Director	29/04/2008	29/04/2008	-	Active	NO

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

DIN No:

00026496

Other Directors :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67120MH1979PTC021879	Satyadharma Investments And Trading Company Private Limited	Director	17/03/1993	17/03/1993	-	Active	NO
2	L99999GJ1978PLC022924	Gujarat Organics Limited	Director	23/05/1995	23/05/1995	30/03/2009	Active	NO
3	U15140MH1997PLC105499	Ricinash Oil Mill Limited	Director	29/01/1997	29/01/1997	-	Active	NO
4	U65990MH1986PLC039188	Jatayu Investments Limited	Director	30/06/1998	30/06/1998	-	Amalgamated	NO
5	U33125MH1955PLC009700	Technical Instruments Manufacturers (India) Limited	Director	########	########	-	Amalgamated	NO
6	U24200MH1997PLC105961	Asian Ppg Industries Limited	Director	8/8/2007	8/8/2007	-	Active	NO
7	U45400MH2007PLC175925	Maxbhumi Developers Limited	Director	22/02/2008	29/01/2008	-	Active	NO
8	U72300MH2007PTC168184	Germinait Solutions Private Limited	Director	30/09/2010	5/8/2010	-	Active	NO

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

DIN No:

02789698

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

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

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

Equity Share Breakup

(AS ON 30.09.2011)

Category	Percentage
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

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

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 :

Not Available

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 :

(Rs. In millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
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

(Rs. In millions)

Unsecured Loan	As on 31.03.2010	As on 31.03.2009
From Bank
Working capital demand loan	150.000	--
Foreign Currency Demand Loan	--	82.430
Total	150.000	82.430

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 :	Asian paints Limited PPG Industries Securities, Inc.
Holding Company:	PPG Industries, Inc.
Subsidiaries :	Faaber Paints Private limited (U24222TN1986PTC012894) PPG India Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2010)

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	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	4007.570	3387.770	3269.570
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		497.340	355.170	576.310
Less	FINANCIAL EXPENSES		23.950	37.980	22.030
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		473.390	317.190	554.280
Less/ Add	DEPRECIATION/ AMORTISATION		52.890	47.300	43.090
	PROFIT BEFORE TAX		420.500	269.890	511.190
Less	TAX		134.700	112.850	181.840
	PROFIT AFTER TAX		285.800	157.040	329.350
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1031.150	886.840	951.250
	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

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.

FORM 8:

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% Stock in process – 33 1/3 % Book Debts 50% Stores and 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.

FIXED ASSTES:

· Leasehold land

·Factory Building

· Plant and machinery

· Computers

· Furniture and fixtures

· Office Equipments

· Vehicles

TRADE REFERENCE:

· Steel Strips Wheels Limited

· Ford India Limited

· Hyundai Motors India Limited

WEBSITE DETAILS:

Asian PPG Industries Limited, better known as Asian PPG, took off as a joint venture between Asian Paints Limited and PPG Industries Inc. in the year 1997. Since then, it has been one high ride for this automotive coatings company. Based in India, the company has its headquarters in Mumbai. Asian PPG is one of the largest automotive coatings suppliers in India, largely because of its consistent sales record. The company operates in 20 states of India through its 42 sales offices.

About the parent Company:

Asian Paints Limited is the leading manufacturer and supplier of coatings in India and has been in the business for over 60 years. It ranks amongst the top ten decorative coatings companies in the world today, with a group turnover of Rs. 36.7 billion (approx. $851 million) Asian Paints manufactures a wide range of paints for decorative and industrial use and has operations in 21 countries across the world. The company has manufacturing facilities in each of these countries, and is the largest paint company in 10 of these 21 countries.

PPG Industries, Inc. is a world leader in the field of automotive OE coatings, industrial coatings and refinishes. Established in 1883, their lines of business include fibreglass and chemicals for optical lenses. PPG has a wide, spread out network with operations in more than 112 countries and with 125 manufacturing locations.

Financials:

In the financial year 2009-10, Asian PPG recorded consolidated gross sales of INR 4903.94 million, with a compounded annual growth rate (CAGR) in sales of 15.1% over the last five years. The company has been a profit-making venture in every year since the first couple of years since inception.

The company is known in business for its ethical approach, its adherence to the law of the land, fair and equitable treatment of all employees, and for its financially prudent approach.

Credit rating agency CRISIL has assigned its highest rating "P1+" for short term and "AA- / Stable" for long term.

Asian PPG has a conservative financial policy with low reliance on debt. Asian PPG’s low gearing, coupled with healthy operating profitability, has resulted in healthy debt protection measures. Its debt structure comprises mainly short-term debt contracted to fund the working capital requirement.

History:

Asian PPG Story:

Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multinational car companies launched their operations in India. Since then, automotive component and automobile manufacturing growth has accelerated to meet growing domestic and export demands.

The automotive coatings market is currently bifurcated into OEMs and auto refinishes, and it is one of the fastest growing sub sectors in the Indian Industrial paint markets. The OEM market is the most predominant one, where the action has been remarkable in the last decade and half with almost all the major automobile companies setting up manufacturing operations in India. The refinishing paint system includes coating systems for passenger cars, commercial vehicles and two-wheeler markets. This market has been demanding exacting coatings for their end products. This has prompted the Indian paint manufacturers to join hands with international paint companies to provide quality coatings. The demand for automotive paints is closely correlated to the growth of the industry in particular and economy in general.

Being a strong player in the Industrial segment, Asian Paints Limited felt the need to combine state-of-art-technology with its nation-wide distribution network. Incidentally, PPG Industries, Inc. of USA, the largest producer and supplier of automotive coatings to major global car manufacturers, was also looking for a partner to venture into India.

Thus, a 50-50 joint venture took place between these two giants, leading to the creation of Asian PPG Industries Limited (Asian PPG). Incorporated on 19th February 1997, Asian PPG's strategy has been to offer better value through closely tailoring its offerings to customer requirements and providing superior service. A combination of expertise and skills garnered from the parent companies and learnings created from within has equipped Asian PPG with the wherewithal to create integrated solutions in addressing consumer needs.

Asian PPG is engaged in the business of manufacturing and marketing automotive and industrial paints. The synergy between the parents helped Asian PPG commence its operations for CED in the month of August 1997. The rest of OEM business was transferred from Asian Paints in October 1997.

In the first year of operation (year ended 31st March 1998), Asian PPG recorded a sale of Rs. 118.76 million. In the year 2009-10, the consolidated sale was Rs. 4903.94 million – CAGR of 36.3% since inception.

In refinishes, the business of Asian Paints was transferred to the company in August 1999. In the auto-refinish segment, Asian PPG's brands include 2K Nexa, Deltron GRS, Bilux, and Aspa. 2K Nexa and Deltron GRS are PPG Industries' international brands in high-end polyurethane paints.

In 2001-02, Asian PPG launched a new economy polyurethane system in the refinish market under the brand name of Bilux. The various ancillary products offered to refinish customers were brought under the 'Autobasic' umbrella brand to facilitate better recognition and communication.

In 2001-02, Asian PPG received an award for 'overall performance' from Hyundai Motor India Limited. In 2006-07, Bilux, Asian PPG's economy PU offering in the refinish market, saw yet another year of impressive growth making it the largest selling brand in its category.

Previously, the company depended on Asian Paints for its entire requirements, but with the acquisition of the Chennai-based Faaber Paints Private Limited (Faber Paints) in August 2006, it now produces paints in-house. With the commissioning of its new manufacturing facility in Chennai in March 2008, reliance on Asian Paints for manufacturing reduced further.

In March 2007, with the acquisition of the advanced refinish 2K business from ICI India Limited. (ICI India), Asian PPG became the leader in the premium refinish segment.

Asian PPG is the second-largest player in industrial automotive paints and market leader in auto-refinish segment.

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.49.08
UK Pound	1	Rs.78.78
Euro	1	Rs.67.76

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.