MIRA INFORM REPORT

Report Date :

17.07.2012

IDENTIFICATION DETAILS

Name :	NIPPON PAINT (PAKISTAN) (PVT) LIMITED

Registered Office :	96-Y, Commercial Area, Phase III, D.H.A., Lahore,

Country :	Pakistan

Year of Establishment :	2006

Com. Reg. No.:	0055056

Legal Form :	Private Limited Company

Line of Business :	Engaged in manufacture, processing & Production of all kind of Liquid Coating, Paints etc

No. of Employees :	110

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory
Payment Behaviour :	No Company
Litigation :	Clear

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Pakistan

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

Business Name

NIPPON PAINT (PAKISTAN) (PVT) LIMITED

Full Address

Registered Address

96-Y, Commercial Area, Phase III, D.H.A., Lahore, Pakistan

Tel #	92 (42) 35694734, 35694735
Fax #	92 (42) 35694737

Short Description Of Business

a.	Nature of Business	Engaged in manufacture, processing & Production of all kind of Liquid Coating, Paints etc
b.	Year Established	2006
c.	Registration #	0055056

Branches

(1) Plot No. 91, Street No. 7, Sector I-10/3, Industrial Estate, Islamabad, Pakistan.

(2) Z-2/A-1, Manghopir Road, S.I.T.E., Karachi, Pakistan.

Auditors

A.F. Ferguson & Co.

(Chartered Accountants)

Legal Status

Subject Company was established as a Private Limited Company in 2006

6.	Authorised Capital	Rs. 300,000,000/- divided into 30,000,000 shares of Rs. 10/- each
	Issued & Paid up Capital	Rs. 89,204,300/- divided into 8,920,430 shares of Rs. 10/- each

Details of Chief Executive / Directors

Names

Nationality

Address

Occupation

Designation

Mr. Lee Buck Siang

Mr. Yaw Seng Heng

Pakistani

96-Y, Commercial Area, Phase III, D.H.A., Lahore

Business

Chief Executive

Director

Shareholders

Name

No of Shares

Mr. Nippon Paint (Malaysia) SDN BHD, Malaysia

Mr. Lee Buck Siang

Mr. Yaw Seng Heng

8,920,428

Associated Companies

None

Business Activities

Engaged in manufacture, processing & Production of all kind of Liquid Coating, Paints etc

Number of Employees

110

Trade Suppliers (Foreign)

Subject mainly import from Companies belongs to Europe, China, Taiwan, Malaysia, U.A.E.

Annual Sales Volume

Year	In Pak Rupees
2010	360,000,000/- (Estimated)

Distributors Network

Mainly exist at major cities of Pakistan

Bankers

· The Royal Bank of Scotland, Pakistan.

· Faysal Bank Limited, Pakistan.

· Habib Bank Limited, Pakistan.

· Standard Chartered Bank, Pakistan.

· Citibank N.A., Pakistan.

· Bank Alfalah Limited, Pakistan.

· Soneri Bank Limited, Pakistan.

Company’s Profile

Nippon Paint is the largest paint manufacturer in Asia. The company will be investing $25 million in Pakistan over the next three to five years, which will include a manufacturing facility in District Kasur, near Lahore. Currently, Nippon Paint Pakistan is doing business with 200 outlets nationwide of which 113 are equipped with the Nippon Paint Colour Creations Tinting Systems. The distribution network is currently spread from the far South, Karachi and Gwadar to the hilly areas of Mingora and continues to spread. Nippon Paint has specially formulated products for the Pakistan market. The five main products being, Nippon Weatherbond for exterior walls, Nippon Brilliance Matt Enamel, Nippon Perfect Emulsion and Matex Gold for interior walls, and Nippon 9000 Gloss Finish for wood and metal substrate. Nippon Paint Pakistan's plant will be operational during the last quarter of 2009, and will initially employ about 300 people. Output from the plant will be for local consumption and possibly for export to neighboring countries. In the interim period, Nippon Paint Pakistan is importing from its Malaysian plant so as to meet the current local market demand for its products. Nippon Paint is the largest paint manufacturer in Asia and a leading name in paint worldwide. It is number one in Japan, China, Indonesia, Singapore and Malaysia; and a key player in Thailand, Vietnam, Taiwan, Korea, Hong Kong, Philippines and India.

Memberships

Lahore Chamber of Commerce & Industry.(LCCI)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 94.80
UK Pound	1	Rs. 146.70
Euro	1	Rs. 116.10

Comments

Subject Company was established in 2006 and is engaged in manufacture, processing & Production of all kind of Liquid Coating, Paints etc. Payments are usually correct and as per commitments. Subject can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.92
UK Pound	1	Rs.85.47
Euro	1	Rs.67.15

INFORMATION DETAILS

Report Prepared by :

PRL

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	--

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%)

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.