MIRA INFORM REPORT

Report Date :

07.01.2012

IDENTIFICATION DETAILS

Name :	3M INDIA LIMITED (w.e.f December 2002)
Formerly Known As :	BIRLA 3M LIMITED
Registered Office :	Plot No.48-51, Electronic City Hosur Road, Bangalore – 560100, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.07.1987
Com. Reg. No.:	013543
Capital Investment / Paid-up Capital :	Rs.112.651 Millions
CIN No.: [Company Identification No.]	L31300KA1987PLC013543
TAN No.: [Tax Deduction & Collection Account No.]	BLR300239B/ BLRM10885A
PAN No.: [Permanent Account No.]	AAACB5724H
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Adhesives Tapes (Milling, Compounding), Coating, Screen Printing, Solvent Extraction, Telecom Connectors, Injection Moulding, Electro Mechanical Assembly and Fiber Optic Assembly.
No. of Employees :	532 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 21560000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financials of the company appears to be sound. 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/ Factory 1/ Innovation Centre:	No.48-51, Electronic City Hosur Road, Bangalore – 560100, Karnataka, India
Tel. No.:	91-80-28520203/ 28520142/ 22231414/ 66595999
Fax No.:	91-80-28520576/ 22231450/ 28520157
E-Mail :	cramesh@mmm.com
Website :	http://www.3m.com/in
Corporate Office :	Concorde Block, UB City, 24, Vittal Mallya Road, Bangalore – 560001, Karnataka, India
Tel No.:	91-80-22231414/ 66595759
Fax No.:	91-80-22231450
Factory 2:	Plot No. 8, Moraiya Industrial Area, Off Sarkhej Bawla Highway, Moraiya, Taluka Sanand, Ahmedabad- 382213,Gujarat, India
Tel. No.:	91-2717-250782/3
Fax No.:	91-2717-250781
Factory 3:	B- 20, MIDC- Ranjangaon, Taluka Shirur, Pune- 412201, Maharashtra, India.
Tel. No.:	91-21-38663726
Factory 4:	No. 145, Mumbai- Pune Road, Pimpri Pune- 411018, Maharashtra, India.
Tel. No.:	91-20-27301100/ 27301164
Fax No.:	91-20-27426380/ 27426385
Factory 5:	PIPDIC Industrial Estate, Unit 2, Plot No. A 63 and 64, Metupalayam, Pondichery- 605009
Tel. No.:	91-413-2278617
Fax No.:	91-413-2279403
Branch Offices:	Located at v Mumbai v Delhi

DIRECTORS

As on 31.03.2011

Name :	Mr. D. J. Balaji Rao
Designation :	Chairman
Name :	Mr. Ajay Nanavati
Designation :	Managing Director
Name :	Mr. B V Shankaranarayana Rao
Designation :	Whole Time Director
Name :	Mrs. Sadhana Kaul
Designation :	Whole Time Director
Name :	Mr. B. S. Lyer
Designation :	Non- Executive Independent Director
Name :	Mr. B. C. Prabhakar
Designation :	Non- Executive Independent Director
Name :	Mr. Jose R. Verala (from Aril 01, 2011)
Designation :	Non- Executive Director

KEY EXECUTIVES

Name :	Mr. K Ramesh Chandra
Designation :	Company Secretary
Name :	Mr. V. Srinivasan (from October 27, 2010)
Designation :	Company Secretary
Audit Committee :	Mr. B. S. Lyer – Chairman Mr. D. J. Balaji Rao – Member Mr. B C Prabhakar – Member Mr. Richard Lee Becker – Member Mr. Jose R. Varela (from April 01, 2011)
Shareholders Grievance committee:	Mr. D. J. Balaji Rao – Chairman Mr. B. S. Lyer – Member Mr. B C Prabhakar – Member Mr. Ajay Nanavati – Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Individual (Non Residence Individuals/ Foreign Individuals)	8562000	76.00
Sub Total	8562000	76.00
Total shareholding of Promoter and Promoter Group (A)	8562000	76.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	231036	2.05
Financial Institutions / Banks	1330	0.01
Insurance Companies	60	-
Foreign Institutional Investors	1025389	9.10
Sub Total	1257815	11.17
(2) Non-Institutions
Bodies Corporate	349088	3.10
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	923559	8.20
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	156552	1.39
Any Others (Specify)
Trusts	400	-
Non Resident Indians	14993	0.13
Clearing Members	663	0.01
Sub Total	1445255	12.83
Total Public shareholding (B)	2703070	24.00
Total (A)+(B)	11265070	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
Total (A)+(B)+(C)	11265070	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Adhesives Tapes (Milling, Compounding), Coating, Screen Printing, Solvent Extraction, Telecom Connectors, Injection Moulding, Electro Mechanical Assembly and Fiber Optic Assembly.

Products :

Item Code No.	Product Description
39.19	Self Adhesive Labels
68.05	Abrasives
30.05	Surgical and Dental Products

· Injection Moulding Tape

· Adhesives (milling, Compounding)

· Coating

· Screen Printing

· Solvent Extraction

· Telecom Connectors

· Injection Moulding

· Electro Mechanical Assembly

· Fiber Optic Assembly Injection Moulding

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Self Adhesive Labels	Nos.	NA	187500000	92203692
Fusion bonded epoxy coating	Kgs.	NA	18000000	3872212
Paper and Paper Tapes	Nos.	NA	NA	31036291
Paint Polishes	Nos.	NA	NA	6482550
Abrasives	Nos.	NA	NA	125458278

Notes:

i) Installed capacity is as certified by the Management and relied upon by the auditors without verification as this is a technical matter.

ii) Represents installed capacities on three shifts basis.

iii) Includes products which are non standard having various sizes and measurement.

iv)The installed capacity represents annual capacity based on the maximum utilisation of Plant and Machinery.

v) Installed capacity includes capacity at third party processing/contract manufacturing locations.

vi) Figures in brackets relate to the previous period.

GENERAL INFORMATION

No. of Employees :

532 (Approximately)

Bankers :

· BNP Paribas

· Canara Bank

· Citibank N.A.

· Deutsche Bank

· HDFC Bank Limited

· ICICI Bank Limited

· State Bank of India

· Hong Kong and Shanghai Banking Corporation Limited

Facilities :

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Finance Lease Obligations (secured by hypothecation of assets taken on finance lease) (Repayable with in one year Rs.21.774 millions (2010 : Nil))	121.325	0.000
Total	121.325	0.000

Banking Relations :	--
Auditors :
Name :	Lovelock and Lewes Chartered Accountant
Address :	5^th Floor, Tower D’, The Millenia, 1 and 2 Murphy Road, Ulsoor, Bangalore – 560008, Karnataka, India
Holding Company :	· 3M Company, USA
Fellow Subsidiaries :	· 3M A/S · 3M Ait Limited · 3M Argentina S.A.C.I.F.I.A. · 3M Asset Management S.a.r.l. · 3M Australia Private Limited · 3M Algeria · 3M Austin · 3M Aycliffe · 3M AUST BIOTRACE · 3M Alaska · 3M Asia Pacific Pte Limited · 3M Belgium S.A./N.V. · 3M Bolivia · 3M BRCKNELL · 3M Canada Company · 3M China Limited · 3M Chile SA · 3M Corporate Services B.V. · 3M Columbia S.A · 3M Cesko · 3M Cuno Ltd UK · 3M Costa Rica S.A · 3M Deutschland GmbH · 3M Dominicana S.A · 3M do Brasil Ltda · 3M (East) A.G. · 3M E Wood Manufacturer · 3M Ecc Europa B.V. · 3M Electro and Communication India Private Limited · 3M Espana, S.A. · 3M ESPE A.G. · 3M Europe S.A. · 3M Ecaudor A.V · 3M El Salvador · 3M Egypt Trading Limited · 3M Financial Management Company · 3M France, S.A. · 3M Filtrete B.V · 3M Film Construction (Shangai) Company Limited · 3M German Holdings GmbH · 3M Global Capital S.a.r.l. · 3M Gulf Limited · 3M Guatemala S.A · 3M Health Care Limited · 3M Health Information Systems, Inc. · 3M Hellas Limited · 3M Hong Kong Limited · 3M Hillington UK · 3M Hawaii · 3M Hungaria Kft · 3M Indonesia PT · 3M Innovative Properties Company · 3M International Group B.V · 3M International Trading (Shanghai) Company Limited · 3M Investment Management Corporation · 3M Italia S.p.A. · 3M International Trading (Shenzhen) Company Limited · 3M International Trading (Tianjin) Company Limited · 3M Philipines Inc · 3M Poland Sp z.o.o. · 3M Precision Optics, Inc. · 3M Puerto Rico, Inc. · 3M Pakistan (Private) Limited · 3M Pharmaceuticals Private Limited · 3M Portugal · 3M Panama S.A · 3M Peru S.A · 3M Russia · 3M Romania SRL · 3M Sanayi VE Ticaret AS · 3M Sante · 3M Sanvetec · 3M Singapore Private Limited · 3M Spain · 3M Svenska AB · 3M Sweden · 3M South Africa (Pty) Limited · 3M Seremban (M) SYD BHD · 3M (Schweiz) A.G. · 3M Taiwan Limited · 3M Taiwan Optronics Corp. · 3M Technologies Private Limited · 3M Telecommunications, Pouyet · 3M Thailand Limited · 3M Touch Systems, Inc. · 3M Traffic Safety Material · 3M Traffic Mfg Shanghai Company Limited · 3M Turkey · 3M United Kingdom Holdings PLC · 3M United Kingdom PLC · 3M Unitek Corporation · 3M Unitek GmbH · 3M Ukraine, kiev · 3M Uruguay S.A · 3M Vietnam Ltd · 3M Venezuela Final AV · 3M Wroclaw Sp. Z.o.o · ABRASIVOS S.A, Peru · Aearo Holding Corp · Alltech Solutions, Canada · Aplha Beta Enterprises Company Limited, Taiwan · Arizant Inc.,Minnesota · Attenti Holdings S.A, Israel · Cogent Inc, California · Cogent Systems India Private Limited · CUNO Engineered Products, Inc · CUNO Filtration Asia Private Limited · CUNO Filtration SAS · CUNO Incorporated · CUNO Pacific Private Limited · Dailys Limited, UK · Dedication to Detail Inc · Dyneon GmbH and Company KG · EMFI S.A, France · Grafoplast Burgienne, France · Hangzhou ORJ Medical Instruements and Material Company Limited, China · 3M Israel Limited · 3M Ireland · 3M Interamerica Inc · 3M Korea Health and Safety Limited · 3M Korea Limited · 3M Korea Hightech Limited · 3M Kenya Limited · 3M Limited · 3M Lietuva, Lithuania · 3M Lanka (Private) Limited · 3M Latvija S.A · 3M Malaysia SDN. BHD · 3M Manufacturera Venezuela, S.A. · 3M Material Technology Company, Limited · 3M Mexico, S.A. de C.V. · 3M MarocLa Coline · 3M Netherland B.V. · 3M New Zealand Limited · 3M Neotechnic Limited · 3M Nevada · 3M Norge A/S · 3M (New Zealand) Limited · 3M Oesterreich GmbH · 3M Optical System Manufacturing Company · IMTEC Corporation · Incavas Industria de Cabose Vassouras Limited, Brazil · Iwate 3M Limited · J.R. Phoenix Limited, Canada · K&H Surface Technologies Private Limited, Australia · Kolors Kevarkian S.A, Argentina · Kyuno Kabushiki Kaisha Sumitomo · Laboratories 3M Sante SAS · Les Entreprises Solumed Inc., · Ligacon AG, Switzerland · Meguiar's Incorporation · Meguiar's International, UK · MTI PolyFab Inc., Canada · Nadco Japan Limited · Polyfoam Products Incorporation, · Quest Technologies Incorporation, · Riker Laboratories, Incorporation · SAPO SAS, France · Seaside Insurance Limited · Security Printing and Systems Limited · Sumitomo 3M Limited · Suomen 3M Oy · Top-Service Fuer Lingualtechnik GmbH, Germany · Yamagata 3M Limited
	·

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11265070	Equity Shares	Rs.10/- each	Rs.112.651 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11265070	Equity Shares	Rs.10/- each	Rs.112.651 Millions

Note: Of the above 8562000 Equity Shares (2010: 8562000 Equity Shares) are held by 3M Company, USA, the Holding Company

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010 (15 Months)	31.12.2008 (12 Months)
SHAREHOLDERS FUNDS
1] Share Capital		112.651	112.651	112.651
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5281.343	4293.271	3364.904
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5393.994	4405.922	3477.555
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		121.325	0.000	0.000
TOTAL BORROWING		121.325	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		5515.319	4405.922	3477.555
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1653.204	1412.966	1159.950
Capital work-in-progress		1011.407	397.233	273.270
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		63.993	82.651	51.249
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1589.261	1231.052	1059.699
	Sundry Debtors	1976.906	1445.470	1085.957
	Cash & Bank Balances	507.381	1055.768	524.836
	Other Current Assets	0.166	3.737	0.150
	Loans & Advances	108.156	471.320	613.998
Total Current Assets		4181.870	4207.347	3284.640
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1698.162	1339.667	1009.201
	Other Current Liabilities	189.044	221.700	160.298
	Provisions	107.949	132.908	122.054
Total Current Liabilities		1995.155	1694.275	1291.553
Net Current Assets		2186.715	2513.072	1993.087
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5515.319	4405.922	3477.555

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010 (15 Months)	31.12.2008 (12 Months)
	SALES
		Income	11755.652	10868.591	7424.734
		Other Income	268.437	199.294	105.938
		TOTAL	12024.089	11067.885	7530.672
Less	EXPENSES
		Cost of Materials	6754.500	6249.438	4277.994
		Manufacturing and Other Expenses	3615.286	3240.284	2270.157
		TOTAL	10369.786	9489.722	6548.151
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1654.303	1578.163	982.521
Less/ Add	DEPRECIATION/ AMORTISATION		173.657	169.461	72.293
	PROFIT BEFORE TAX		1480.646	1408.702	910.228
Less	TAX		492.576	480.334	335.679
	PROFIT AFTER TAX		988.072	928.368	574.549
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4195.056	3266.688	262.140
	BALANCE CARRIED TO THE B/S		5183.128	4195.056	3266.689
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	282.194	145.743	42.284
		Freight and Insurance on Exports	8.686	5.241	1.599
		Contract Research	73.886	123.234	0.000
		Re-charge of other service	63.648	0.000	0.000
	TOTAL EARNINGS		428.414	274.218	43.883
	IMPORTS
		Raw Materials	1804.382	1637.753	1173.319
		Traded Goods	2667.910	2525.344	1959.093
		Stores & Spares	5.270	7.336	5.376
		Capital Goods	244.623	157.370	151.051
	TOTAL IMPORTS		4722.185	4327.803	3288.839
	Earnings Per Share (Rs.)		87.71	82.41	51.00

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2011	30.09.2011
	1^st Quarter	2^nd Quarter
Sales Turnover	3320.520	3516.580
Total Expenditure	3082.350	3033.190
PBIDT (Excl OI)	238.170	483.390
Other Income	6.930	4.460
Operating Profit	245.100	487.850
Interest	5.550	5.130
Exceptional Items	0.000	0.000
PBDT	239.550	482.720
Depreciation	63.680	55.980
Profit Before Tax	175.870	426.740
Tax	57.070	138.450
Provision and Contingencies	0.000	0.000
Reported PAT	118.800	288.290
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	188.800	288.290

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010 (15 Months)	31.12.2008 (12 Months)
PAT / Total Income	(%)	8.22	8.39	7.63
Net Profit Margin (PBT/Sales)	(%)	12.60	12.73	12.26
Return on Total Assets (PBT/Total Assets}	(%)	25.37	24.99	20.11
Return on Investment (ROI) (PBT/Networth)		0.27	0.09	0.26
Debt Equity Ratio (Total Liability/Networth)		0.39	0.39	0.37
Current Ratio (Current Asset/Current Liability)		2.09	2.47	2.54

LOCAL AGENCY FURTHER INFORMATION

COMPANY PERFORMANCE

On a like to like basis i.e. comparing the results for the financial year ended March 31, 2011 with the un-audited results for the 12 months ended March 31, 2010, the Company registered an overall turnover growth of 31% and improved the operating margins by 22%. Net profit after taxation grew by 23%. The Industrial and Transportation business grew by 36%; Health Care business grew by 15%: Display and Graphics business grew by 52%; Consumer and Office business grew by 22% and Safety, Security and Protection Services business grew by 14%. Exports grew by 97%. Earnings per share for the period 2010-11 were Rs.87.71, a growth of 23%.

AWARDS AND RECOGNITION

The Company received following awards and recognitions for its achievements:

- 3M Car Care, a division of the Company, was recognized for Best Performance at the Hyundai Customer Care Service Vendors Convention in Delhi.

- Honda Seil Car India, one of their top customers ranked the Company as No.1 out of 103 suppliers.

- Honda Motorcycle & Scooter India (HMSI) recognized the Company as their top supplier for 2010-11 for QCDDM which covers parameters like quality, cost, delivery, development and management.

- The Electronic City plant won the 3rd prize for 5S Excellence organized by the Confederation of Indian Industry (CII) for the Manufacturing Sector (Medium Scale) 002E

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ABOUT 3M INDIA LIMITED

Subject is a diversified technology Company with a global presence. Their product range has applications for diverse markets in India, viz. Construction, Transportation, Hospitals, General Industry, Aerospace, Railways, Highways, Defence, Security, Mining, Oil and Gas, Marine, Homes to name a few.

Subject India manages its operations in five operating business segments: Industrial and Transportation Business; Health Care Business; Display and Graphics Business; Consumer and Office Business and Safety, Security and Protection Services Business. Subject India’s five business segments bring together common or related 3M technologies that enhance the development of innovative products and services.

During the period, the Company made certain business segment realignments that included product moves between its business segments and reporting changes.

Subject products are sold through numerous distribution channels, including directly to users and through numerous wholesalers, retailers, jobbers, distributors and dealers in a wide variety of trades in many countries around the world. The Management of the Company believes that the confidence of wholesalers, retailers, jobbers, distributors and dealers in Subject and its products has contributed significantly to Subject India's growth and its position in the marketplace.

Forward-looking statements relate to future events and typically address the Company's expected future business and financial performance. In particular, these include, among others, statements relating to the Company's:

Strategy for growth, future revenues, earnings, cash flow, uses of cash and other measures of financial performance, and market position

Worldwide economic and capital markets conditions, such as interest rates, foreign currency exchange rates, and financial conditions of our suppliers and customers

New business opportunities, product development, and future performance or results of current or anticipated products

- The scope, nature or impact of acquisition, strategic alliance and divestiture activities

- The outcome of contingencies, such as legal and regulatory proceedings

- Future levels of indebtedness and capital spending

- Future availability of and access to credit markets, and

- The effects of changes in tax, and other laws and regulations

ECONOMIC OVERVIEW

The world economy is moving from a post crisis recovery to slower but solid growth this year and next year, with developing countries contributing almost half of global growth.

The global economy is forecasted to grow by around 4.4% in 2011.The output of emerging and developing economies is projected to grow at 6.4% for the year 2011. However in case of advanced economies, it is projected to be only 2.2% for the year 2011.

The Indian Economy has emerged with remarkable rapidity from the slowdown caused by the global financial crisis of 2007-09 with a growth of 8.6% (advance estimate) in 2010-11 and an expected 9% next year (2011-12). Last year (2010-2011), the Indian economy was characterized by robust economic growth and steady fiscal consolidation. This growth is visible in all sectors of the economy: the agricultural sector is seeing renewed growth, the manufacturing sector continues its momentum, and private services are showing growth as well. Inflation continues to be high even though it has come down markedly from where it was at the start of the fiscal year. There are structural challenges that they face, concerning economic governance, efficiency in delivery of subsidies and building up of infrastructure. Policies formulated to take care of these can help moderate inflation, accelerate economic inclusion, boost investment and infrastructure, and enable agriculture productivity, which has revived remarkably well this year, to be on a sustained high growth path.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

On the demand side, a rise in savings, investment and private consumption have resulted in strong GDP growth at constant market prices of 9.7% in 2010-11. A sequential and gradual withdrawal of monetary accommodation is helping contain inflationary pressures. Services have been India’s engine of growth and employment. Policies to promote further opportunities may be essential, especially given the vast opportunities in new areas sparked by global demand. Infrastructure services are expanding rapidly, as are service delivery standards, thanks to rising and accelerated investment (with rates roughly doubling over the Eleventh Plan period)-from aviation, roads and telecommunications to ports, railways and power. On the downside, risks of global events, particularly movement in prices of commodities like crude oil (exacerbated by the political turmoil in the Middle East), remain. However, the Indian economy is poised for further improvement and is expected to consolidate in terms of key macroeconomic indicators. High commodity prices, hardening of interest rates and inflation will remain key challenges and will need focused attention.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company was able to maintain the growth momentum during this year ended March 31, 2011 through operational excellence, localization and the wide range of market segments in which the Company operates.

On a like to like basis i.e. comparing the results for the financial year ended March 31, 2011 with the un-audited results for the 12 months ended March 31, 2010, the Company registered an overall turnover growth of 31% and improved the operating margins by 22%. Net profit after taxation grew by 23%. The Industrial and Transportation business grew by 36%; Health Care business grew by 15%; Display and Graphics business grew by 52%; Consumer and Office business grew by 22% and Safety, Security and Protection Services business grew by 14%.

OPERATIONAL HIGHLIGHTS

The following are some of the highlights of the Company for the year ended March 31, 2011.

- New R and D facility at Gurgaon, New Delhi

- Construction of the new R and D at Electronics City

- New Branch offices at Kolkata, Chennai and Pune

- Increase in localization efforts.

Filed 14 patents and launched over 23 local new product innovations that included innovations in the consumer range of utensil and floor cleaning products, infection prevention and tape products for hospitals, double coated tapes and labels for converter markets, traffic and road safety products, automotive fillers and putties for car body repair, etc.,

PR efforts to increase the visibility of the 3M brand through coverage in major newspapers, magazines etc

India’s First Car Care Center was launched at Bangalore on a franchisee model.

New programmes to develop leadership talent and groom employees for high growth ahead

The Corrosion Protection Products (CPP) Plant in Ahmedabad set up a new lab to promote the development of new products and applications.

The Electronics City plant, Bangalore launched the Power of P initiative, an all in one initiative to eliminate all forms of waste, increase productivity and cost effectiveness.

New tape production line inaugurated at the Ranjangaon plant which will manufacture double coated tissue tapes, double coated polyester tapes and performance labels.

INDUSTRIAL AND TRANSPORTATION BUSINESS:

The Industrial and Transportation Business Segment serves a broad range of markets, such as general industry, appliances, paper and packaging, food and beverage, electronics, automotive Original Equipment Manufacturer (OEM), automotive aftermarket (auto body shops and retail) to name a few. Their Industrial and Transportation business has products that include tapes, a wide variety of coated and non-woven abrasives, adhesives, specialty materials, components and products that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles. Major products under this segment include vinyl, polyester, foil and specialty industrial tapes and adhesives: Scotch Masking Tape, Scotch Filament Tape and Scotch Packaging Tape; Functional and Decorative Graphics; Abrasion-Resistant Films, Masking Tapes and Other Specialty Materials.

HIGHLIGHTS

- Entry in high volume retail segments with specific product lines.

- Growth in sales which is attributed to market share gains, account penetration, organic growth and new product introductions.

- Continuous development and implementation of specific programs focused on markets like Automotive OEMs and Tier 1 Auto component manufacturers, Auto-aftermarket.

- Focus on both the OEM and the aftermarket segments of the automotive industry to leverage the high growth that this industry is currently experiencing.

- Entry into independent Car Detailing through franchised Car Care Stores.

- Entry into Micro, Small and Medium Enterprises segment with specific product lines.

HEALTH CARE BUSINESS

Their Health Care business segment serves markets that include large multi-specialty hospitals and small clinics, dental and orthodontic practitioners, processed food manufacturers and pharmaceutical companies. Their offerings include medical and surgical supplies, medical devices, skin and wound care and infection prevention products and solutions, drug delivery systems, dental and orthodontic products and food safety products.

HIGHLIGHTS

- ISO 9001 and ISO 13485 certified Medical Focus Factory commissioned.

- In India, Procedure Drape packs were introduced and in-house manufacturing of Rapid Multi Enzyme Cleaner and Tapes was started.

- Improved distribution and coverage, strong momentum seen in Prescription Pharmacy Tapes.

- New product Introductions ahead of the plan

- Lab and Digital dental business saw high growth with scanners being installed across the country.

- The Company is actively contributing to improve the standards of Healthcare Industry though participation in BIS committees, Technical Committees and various other Government Committees.

- Expansion of Food Safety business through successful entry into Diary, Beverage and other Food processing Industry Orthodontic business increased coverage to all customer segments.

SAFETY, SECURITY AND PROTECTION SERVICES BUSINESS

Safety, Security and Protection Services business segment serves a broad range of markets that increase the safety, security and protection of workers, facilities and systems. Major product offerings include personal protection products, brand and asset protection solutions, border control products, passive fire protection products for industries and commercial establishments, track and trace products, cleaning and hygiene products for the hospitality industry.

HIGHLIGHTS

Significant improvement seen in Industrial production helped increase safety awareness and this helped boost the demand for safety products. Project delays and increased material cost impacted the execution of pipeline projects thus decreasing demand.

- The opening up of the economy helped IT , ITES, Hospitality and the continued investment in infrastructure created demand for Track and trace, security and protection products.

CONSUMER AND OFFICE BUSINESS:

The consumer and Office Business portfolio from 3M, has some very well established brands such as- Scotch-Brite® brand, that include Scour Pads, Scotch-Brite® Scrub Sponges, Scotch-Brite™ Floor Cleaning range ; Scotch® brand products, such as Scotch® Magic™ Tape, Scotch® Glue Stick, Scotch® Packaging Tapes, Scotch® Utility Tapes ; Post-it® Brand products, such as Post-it® Flags, Post-it® Note Pads, and Post-it® Pop-up Notes and Dispensers. These brands have become household names and categories by themselves in the Indian market

HIGHLIGHTS

- Expansion of the Scotch-Brite® brand beyond utensil care, into newer categories through the ‘HELPING HAND’ positioning

- The Home Care range extended its portfolio into the Floor Category and gained foothold.

- The stationary range expanded the tapes category with the Scotch® Magic Tapes, targeting the students market and increased penetration.

- Strong communication support to the brands on Mass media (TV) to establish the brands with target consumers

- With resurgence of Modern trade, partnership with key retail chains increased

- With the overall buoyancy in the economy, the Office channel also bounced back with higher top line sales.

DISPLAY AND GRAPHICS BUSINESS

Display and Graphics Business is an amalgamation of four divisional subsets- the Traffic Safety Systems Division (TSSD), the Commercial Graphics Division (CGD), the Architectural Markets Division (AMD) and the Mobile Interactive Solutions Division (MISD). TSSD offers a host of road safety services and motor vehicle safety solutions. The offerings include retro reflective traffic signs for highways and cities, pavement marking and vehicle registration products and services. CGD portfolio includes products like films, inks and digital signage products which help create static and dynamic graphics for retail signs, buildings, vehicles, commercial-space exteriors and interiors as also a multi-segment brand-owner focus service offering. AMD offers wall and glass cladding products coupled with architectural interior services and environmental graphics for home and office spaces. MISD caters to the electronic displays market addressing the needs for projection systems, computer and ATM-screen privacy Filters and brightness enhancement films for television, avionics and automotive displays.

HIGHLIGHTS

- The Company was chosen as the preferred supplier for traffic signs for the city roads, printable graphics for the stadia and wall-glass cladding solutions for the new T3 International Terminal at the Indira Gandhi International Airport during the 2010 Common Wealth Games at Delhi.

- Successfully launched the Roadway Maintenance Services (RMS) as a turn-key offering for supply and installation of street furniture

- The Company was chosen by Bharti Airtel to roll out their new brand identity through in store graphics and signage across all its exclusive outlets across India as an end-to-end project service.

- Entered the promotional graphics market with the launch of a range of low-cost vinyl and banner products The range was launched along with a loyalty program - Voyage – targeted at large-format printing organizations.

- 3M Digital-Out-of-Home was chosen by Union Bank of India and IndusInd Bank amongst others to roll out their digital signage network across its branches in India.

- Architectural Markets Division (AMD) was created and formalized as a separate division globally, with a view to focus completely on the Architect/ Interior Designer market.

- Made in-roads into Architectural Interior Services (AIS), by bagging first orders from leading banks such as Bank of America & ICICI Bank Ltd

- Expanded portfolio with increased focus on both DI-NOC and Fasara for wall cladding and glass cladding respectively Market penetration of these products has increased

- Strengthened position as the leading supplier of Frosted Glass Etching films

- With the inception of Mobile Interactive Solutions Division (MISD), the globally-successful range of ‘Gold privacy filters’ was launched in India.

- Increased penetration in key accounts within privacy filter markets

- Strengthened share in the projector systems market with improved focus in education segment.

OUTLOOK

For the year 2011-12, the Company expects sales growth and overall outlook to be positive and will be able to maintain a similar level of growth achieved last year. This expected sales growth and related incremental operating income is considered after taking into account factors such as; stable rupee against all major currencies, sustained investments in infrastructure by the State and Central Governments and focus on health care etc,. The Company will continue to focus on its localization efforts, innovative R and D, development of new customer segments and expansion of current market segments to secure competitive growth. Forward-looking statements as mentioned above may involve risks and uncertainties that could cause results to differ materially from those projected.

BUSINESS DESCRIPTION

Subject is a diversified technology company. It operates in five segments. The Industrial and Transportation Business Segment serves a range of markets, such as general industry, appliances, paper and packaging, food and beverage. Its Health Care business segment serves markets that include large multi-specialty hospitals and small clinics, dental and orthodontic practitioners. Safety, Security and Protection Services business segment serves a range of markets that increase the safety, security and protection of workers, facilities and systems. The consumer and Office Business portfolio has brands such as- Scotch-Brite brand, that include Scour Pads, Scotch-Brite Scrub Sponges and Scotch brand products, such as Scotch Magic Tape. Display and Graphics Business is an amalgamation of four divisional subsets- the Traffic Safety Systems Division, the Commercial Graphics Division, the Architectural Markets Division and the Mobile Interactive Solutions Division. For the nine months ended 31 December 2010, Subject revenues increased 34% to RS8.74B. Net income increased 35% to 705.1M. Revenues reflect an increase in income from Industrial & Transportation business segment, a rise in Consumer & Office business segment revenue, higher revenue from Health care business division and increase income from Others business segment. Net income also reflects higher gross profit & operating profit margin.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011	31.03.2010
A] Guarantees - Issued by company’s Bankers	75.055	66.842
B] Claims against the Company not acknowledged as debts:
- Pending Sales Tax matters	0.000	41.759
- Income Tax matter	86.026	46.917
C] Certain industrial / customer disputes are pending before various judicial authorities – amounts not ascertainable
Notes: Future cash outflow in respect of (b) above are determinable only on receipt of judgments / decisions pending with various forums/authorities

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2011

(Rs. in millions)

Particulars	3 Months ended September 30, 2011 (Unaudited)	6 Months ended September 30, 2011 (Unaudited)
a) Net sales	3277.462	6747.427
b) Other operating Income	43.055	88.667
Expenditure
a) (Increase)/ Decrease in stock in trade and work in progress	65.736	(113.101)
b) Consumption of raw materials	845.824	1813.925
c) Purchase of traded goods	1150.432	2460.421
d) Employees cost	469.382	907.854
e) Depreciation	63.681	119.664
f) Other Expenditure	550.975	1046.430
Total	3146.030	6235.193
Profit from Operations before Other Income, Interest and Exceptional Items	174.487	601.901
Other Income	6.926	11.386
Profit Before Interest and Exceptional Items	181.413	613.287
Interest	(5.555)	(10.684)
Profit After Interest but before Exceptional Items	175.858	602.603
Exceptional Items	0.000	0.000
Profit from Ordinary activities Before Tax	175.858	602.603
Tax Expense - Current Tax - Deferred Tax - Fringe benefit tax	58.151 (1.093)	197.227 (1.713)
Total taxation Expenses	57.058	195.514
Net profit from ordinary activities after tax	118.800	407.089
Paid up Equity Share Capital (Face value of Rs.10/- Per Share)	112.651	112.651
Reserves excluding revaluation reserve as per balance sheet of the previous accounting year
Earning Per Share a) Basic and Diluted EPS before Extraordinary Items (not annualised) b) Basic and Diluted EPS after Extraordinary Items (not annualised)	10.55 10.55	36.14 36.14
Public Shareholding
- Number of shares	2703070	2703070
- Percentage of shareholding	24.00%	24.00%
Promoters and promoter group shareholding
a) Pledged/Encumbered - Number of Shares - Percentage of shares (as a % of the total shareholding of promoter and promoters group) - Percentage of shares (as a % of total share capital of a company)
b) Non-encumbered - Number of shares - Percentage of shares (as a % of the total shareholding of promoter and promoters group) - Percentage of shares (as a % of total share capital of a company)	8562000 100% 76.00	8562000 100% 76.00

Notes:

1. The above financial result were reviewed by the audit committee in its meeting held on 31, 2011 and approved by the board of directors of the above company at its meetings held on the same day. The limited review of the same has been carried out by the statutory auditors of the company.

2. There were no complaints from investors pending at the beginning and at the end of the quarter. Eight complaints were received and the same were duly responded to during the quarter.

3. Corresponding previous quarter/ period’s figures are regrouped whatever necessary

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Data Processing Equipment

· Vehicles

Board of Director

D. J. BALAJI RAO - NON-EXECUTIVE INDEPENDENT CHAIRMAN OF THE BOARD

Mr. D.J. Balaji Rao is Non-Executive Independent Chairman of the Board of Subject. He is holds a B.E Degree in Mechanical Engineering from the University of Madras and a Post Graduate Diploma in Industrial Engineering from Bombay University. He attended the Advanced Management Program at European Institute of Business Administration (INSEAD) at Fontainebleu, France, in 1990. He pursued his career as an Industrial Engineer for about 8 years before joining erstwhile ICICI Limited (since merged with ICICI Bank Limited) in 1970. After wide ranging responsibilities in different locations, he reached the position of Deputy Managing Director. He subsequently took over as the Vice Chairman and Managing Director of SCICI Limited, in August 1996. With the merger of SCICI Limited with ICICI Limited he moved to Infrastructure Development Finance Company limited (IDFC), as its first Managing Director, which he served till his superannuation in January 2000.He has served on the Boards of many companies including Bosch Limited(formerly MICO Ltd) , Wipro Limited and Bharat Forge Limited, etc. He was appointed as a Director of the Company from December 26, 2001 and as Chairman of the Company from September 10, 2008.

B. S. IYER - NON-EXECUTIVE INDEPENDENT DIRECTOR

Mr. B.S. Iyer is Non-Executive Independent Director of Subject. He is a Post Graduate in Commerce and in Law from the University of Bombay, and holds a Diploma in Management Accounting and is a Fellow Member of the Institute of Company Secretaries of India. He has held senior positions responsible for Corporate Legal affairs for over 30 years. He retired as Vice President Legal and Company Secretary of Bosch Limited. He is a Corporate Legal Consultant for many MNCs and Indian Companies. He was appointed as a Director of the Company from December 12, 2001.

AJAY NANAVATI - MANAGING DIRECTOR, EXECUTIVE DIRECTOR

Mr. Ajay Nanavati is Managing Director, Executive Director of Subject. He holds a Bachelor Degree in Chemical Engineering from USA and has a experience in various Industries, spanning over 30 years. He started his professional career in 1977 with Tata Consulting Engineers before joining Subject in 1988 as General Manager. He held various senior positions in Subject, USA and in other subsidiaries over the last 23 years of his career in Subject Group. He was appointed as Managing Director of the Company from October 01, 2008.

B. C. PRABHAKAR - NON-EXECUTIVE INDEPENDENT DIRECTOR

Mr. B.C. Prabhakar is the Non-Executive Independent Director of Subject since December 11, 2006. He has been a Practicing Lawyer since April 1970 and Management Consultant on Labour Laws and Service matters. He is the working President of Karnataka Employers Association, which is the and oldest Employers Association in the State of Karnataka. He is an Employers Nominee of Employees State Insurance Corporation, New Delhi. He has attended Indian Labour Conference for the past ten years which is the highest Tripartite Forum consisting of Representatives of Employers, Workers and Government. He holds a B.A Degree in Political Science and Sociology and a B.L Degree from Mysore University.

B.V. SHANKARANARAYANA RAO - WHOLE-TIME DIRECTOR

Mr. B.V. Shankaranarayana Rao is Whole-Time Director of Subject. He holds a Bachelor Degree in Commerce and a Masters Degree in Business Administration from Bangalore University. He has also completed Intermediate Examination of the Institute of Cost and Works Accountants of India (ICWAI) .He has been with the Company since 1990. He has over 30 years of experience in Finance and Corporate Management. He has held various positions during his tenure in 3M India. He has also worked in 3M Asia Pacific, Singapore, prior to heading the Finance Department in 3M India Limited. He was appointed as a Whole-time Director of the Company from February 23, 2003.

SADHANA KAUL - VICE PRESIDENT-LEGAL

Mrs. Sadhana Kaul is Whole-Time Director of Subject. She joined the Company in 2005 and has over 21 years of experience in the legal field, having worked in different capacities in law firms in the US and in India. She leads the planning, development and execution of strategic legal initiatives whilst managing the legal risks of the Company in India and parts of South East Asia. Prior to joining the Company, she was with GE Medical Systems as Senior Legal Counsel based in Bangalore. She holds a Bachelors Degree in Law from Trinity College Cambridge, UK and a Masters Degree in International and Comparative Law from Georgetown University Law Center, Washington D.C. She was appointed as a Whole-time Director of the Company from October 09, 2009.

PRESS RELEASE:

Asia's largest cleanliness show in Mumbai

United News of India

03 November 2011

Multiclean Limited, Karcher, Charnock Equipments, 3M India, Best Practice Washroom and British Institute Of Cleaning among others. Over the last decade, the Cleaning Industry in India has registered steady growth of 40 to 50% per annum. There is an increase in hygiene awareness and enforcement of international standards in many sectors including IT, Pharma, Food, Hospitality, Healthcare, Retail and others, says Jayaraman Nair, Chairman, Virtual Info Systems Private Limited. The rising demand for clean offices, clean platforms, clean rail coaches, clean airports, road, hospitals, hotels, malls and multiplexes, manufacturing units and other public places have created a proportional demand for professional cleaning practices, industrial cleaning systems, state-of-the-art cleaning tools and equipment, washroom hygiene accessories, feminine hygiene products and sanitation solutions, Nair added. The show will have participants from over 12 Countries including Germany, Italy, UK, Malaysia, Dubai and China amongst the others. The event is organized by Virtual Info Systems Private Limited along with Italy based Adifamp Servizi sri and Clean India Journal. UNI AAA PR RH VP1545 Published by HT Syndication with permission from United News of India.

Change in Director(s)

Accord Fintech (India)

31 October 2011

India, Oct. 31 -- 3m India Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on October 31, 2011, inter alia, has transacted the following: (1) Mr. Jose Varela will cease to be Director of the Company with effect from October 31, 2011 consequent upon being appointed as Managing Director of 3M Brazil. (2) Mr. R. Vijay Kumar has been appointed as Director in the vacancy arising from the resignation of Mr. Jose Varela with effect from October 31, 2011. He was also appointed as Whole-time Director of the Company with the responsibilities of Strategic Planning, Acquisitions, Business Development (Mining, Construction and Defence Markets) and IT.

Markets to get a cautious start of the new week

Accord Fintech (India)

31 October 2011

India, Oct. 31 -- The Indian markets gave a Midas touch to the Diwali week and both the benchmark indices surged gaining around 3 percent each on the last trading session, crossing their crucial levels. Today, the start is likely to be cautious as the European euphoria has fizzled out and the market men will be rather concentrating on the domestic developments and the ongoing earning season where the dismal performance of auto major Maruti Suzuki is likely to trigger earnings downgrade in the India Inc.. The company has reported a 59.8% year-on-year drop in net profit to Rs 2404.000 millions mainly due to prolonged labour unrest in the companies' Gurgaon unit. Also there will be some buzz in the pharma sector as the draft pharmaceutical policy has proposed price control on nearly 350 essential medicines-on drug companies. According to the policy, the ceiling price would be fixed on the basis of Weighted Average Price (WAP) of the top three brands by value (moving annual total value). Manufacturers would be free to fix any price for their products equal to or below the ceiling price.Meanwhile there will be some impact of C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (PMEAC) statement who had earlier estimated GDP growth at eight per cent in 2011-12, has now said that "The economy will grow in the range of 7.5-8 per cent...it may be 7.8 or 7.7 per cent'.Also there will be lots of result announcements that will keep the markets buzzing, 3M India, Alok Inds, Dena Bank, Bata India, ICICI Bank, BPCL, Dabur India, Wipro, United Brew Hldg, United Breweries and lots of SU banks are among the many to announce their numbers today. The US markets made a mixed closing on Friday, the trade remained volatile and despite some good economic reports Nasdaq could not manage a close of green. The Asian markets too have made a similar start and some of the indices are trading marginally in red. Chinese market has declined after the government there shuffled its financial and securities regulator, while the Japanese market is trading in green as Yen weakened against dollar on speculation of government intervention in markets to weaken its currency. Back home, Indian benchmarks extended their Diwali celebrations on the last trading session of the week. It looked like the bears just ceased to exist as there was little evidence of profit booking through the day. The festivities got bigger after the two session break in observance of the festival of lights as frontline equity showcased an awe-inspiring performance by vivaciously rallying by a massive three percentage points in the session and re-conquering the 5,350 (Nifty) and 17,800 (Sensex) bastions. Sentiments got bolstered after the European policy makers approved a three-pronged agreement which will help in easing Greece's debt burden and strengthen banks and the European bailout fund. As per the tripartite agreement, private investors would accept a loss of 50% on Greek bonds, which will cut Greece's debt burden to 120% of GDP by 2020, banks will be forced to raise more capital to protect them against losses resulting from any future defaults and approved a crucial mechanism to boost the EFSF to an estimated 1 trillion euro. Friday's sharp rally for the local benchmarks appeared even more marvelous given the fact that the gains came on a day when equity indices in Europe traded on a sluggish note while none of the counterparts in the Asian region were able to match the colossal gains that domestic indices settled with. Earlier on Dalal Street, the Sensex got off to a gigantic over six hundred point gap up opening as investors rejoiced after Euro-zone policy makers approved a concrete blueprint to rescue the region from debt trouble. In no time the indices tapered to lower levels but continued to tread in a tight range thereafter. The frontline gauges hit intraday lows in early afternoon trades after the unimpressive European market opening but a sudden spurt in sentiments was witnessed thereafter in mid-noon trades which helped the indices to settle around more than two month high levels by the end. On the BSE sectoral space, the metal counter showed sharp upmove and surged close to six percent amid global rally in commodity prices on hopes of an optimistic global economic outlook. While the rate sensitive banking pocket too appeared in resurgent mood after reports that the ministry of finance has indicated that it is likely to approve capital infusion into public sector banks, including State Bank of India by mid-November. Finally, the BSE Sensex surged by 515.97 points or 2.92% to settle at 17,804.80, while the S&P CNX Nifty soared by 158.90 points or 3.05% to close at 5,360.70.

NABH pacts with 3M India to promote quality practices in hospitals

United News of India

17 October 2011

New Delhi, Oct. 17 -- NABH (National Accreditation Board for Hospitals and Healthcare Providers) today signed a memorandum of understanding (MoU) with 3M India Limited to promote best practices and standards in hospitals to not only prevent healthcare associated infections but also promote quality care for patients in India. The alliance will help prevent and control infection related morbidity and mortality as well as reduce the cost of care linked to healthcare associated infection. This collaboration between 3M and NABH is aimed at advancing medical knowledge and spreading awareness on the subject of healthcare-associated infections and their prevention, NABH said in a statement. The collaboration will involve conducting workshops towards surgical site infection prevention, sterilization assurance, care of IV lines - catheter related blood stream infection prevention, wound management and casting workshops across India. These workshops will help create awareness about the quality and standard to be followed by healthcare organizations to match the standards required for NABH accreditation speaking on the occasion of the signing of MoU with 3M India Limited, NABH CEO Girdhar J Gyani said, Quality in healthcare is being recognized as key parameter all over the world. It directly aims at saving precious lives...NABH is pleased to join hands with organizations like 3M in a mission to provide quality healthcare in our country. NABH, a constituent board of the Quality Council of India, was set up to establish and operate accreditation programme for healthcare organizations.

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.52.78
UK Pound	1	Rs.81.79
Euro	1	Rs.67.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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.