MIRA INFORM REPORT

Report Date :

22.11.2012

IDENTIFICATION DETAILS

Name :	ASIAN PAINTS PPG PRIVATE LIMITED [w.e.f. 28.08.2011]
Formerly Known As :	ASIAN PAINTS PPG LIMITED
Registered Office :	6A, Shantinagar, Santacruz (East), Mumbai-400055, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.08.2011
Com. Reg. No.:	11-220557
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U24110MH2011PTC220557
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Paints.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

B (39)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 7000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a joint venture between Asian Paint and PPG Industries. It is relatively new established company having moderate track record. Liquidity position of the holding company is strong. Fundamental are healthy. Trade relations are reported to be fair. Business is active. Payments are unknown. In view of experience promoter company can be considered for business dealing 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

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

LOCATIONS

Registered Office / Factory :	6A, Shantinagar, Santacruz (East), Mumbai-400055, Maharashtra, India
Tel. No.:	91-22-39818591 / 39818000
Fax No.:	91-22-39818888
E-Mail :	customercare@asianppg.com dipali.sheth@asianppg.com
Head Office :	158, Vidyanagari Marg, CST Road, Dani Wooltex Compound, Kalina, Santacruz (East), Mumbai-400098, Maharashtra, India
Tel. No.:	91-22-30568700/8800
Fax No.:	91-22-26528044/30568764

DIRECTORS

AS ON 18.06.2012

Name :

Jonothan Bryan Kennedy

Designation :

Director

Address :

Berth No. B43, Marina Discovery Bay, Lantau Island, Hong Kong

Date of Birth/Age :

18.10.1965

Date of Appointment :

05.08.2011

Din No.:

02413678

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27300MH1997PTC107023	PPG COATINGS INDIA PRIVATE LIMITED	Director	30/06/2009	08/12/2008	-	Amalgamated	NO
2	U24222TN2006FTC073663	PPG INDIA PRIVATE LIMITED	Director appointed in casual vacancy	31/12/2008	31/12/2008	21/01/2012	Active	NO
3	U24110MH2011PTC220557	ASIAN PAINTS PPG PRIVATE LIMITED	Director	05/08/2011	05/08/2011	-	Active	NO
4	U74120MH2012FTC225714	PPG INDUSTRIES INDIA PRIVATE LIMITED	Director	04/01/2012	04/01/2012	-	Active	NO

Name :

Mr. Manish Mahendra Choksi

Designation :

Director

Address :

C 1801/1802, Beaumonde, Appa Saheb Marathe Marg, Prabhadevi, Mumbai-400025, Maharashtra, India

Date of Birth/Age :

12.09.1967

Date of Appointment :

01.08.2012

Din No.:

00026496

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP 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	12/02/2001	12/02/2001	-	Amalgamated	NO
6	U24200MH1997PTC105961	PPG ASIAN PAINTS PRIVATE LIMITED	Director	08/08/2007	08/08/2007	-	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	05/08/2010	-	Active	NO
9	L51900MH1982PLC026174	ELF TRADING AND CHEMICAL MANUFACTURING LTD	Director	27/07/2012	30/05/2012	-	Active	NO
10	U24110MH2011PTC220557	ASIAN PAINTS PPG Private Limited	Director	01/08/2012	24/07/2012	-	Active	NO
11	U74999MH2008PTC187222	BORDERLESS ACCESS PANELS PRIVATE LIMITED	Additional director	28/07/2012	28/07/2012	-	Active	NO
12	U74999MH2008PTC187219	INFORMATE MOBILE INTELLIGENCE PRIVATE LIMITED	Additional director	28/07/2012	28/07/2012	-	Active	NO
13	U72200KA2000PTC027548	CROSS-TAB MARKETING SERVICES PRIVATE LIMITED	Additional director	28/07/2012	28/07/2012	-	Active	NO
14	U93093KA2010PTC055871	BLUEOCEAN MARKET INTELLIGENCE SERVICES PRIVATE LIMITED	Additional director	28/07/2012	28/07/2012	-	Active	NO

Name :

Mr. Kanwar Bir Singh Anand

Designation :

Director

Address :

251, Kalpataru Heights, Sane Guruji Marg, Jacob Circle, Mumbai-400011, Maharashtra, India

Date of Birth/Age :

30.08.1955

Date of Appointment :

01.08.2012

Din No.:

03518282

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L24220MH1945PLC004598	ASIAN PAINTS LIMITED	Managing director	25/06/2012	01/04/2012	Active	NO
2	U24110MH2011PTC220557	ASIAN PAINTS PPG PRIVATE LIMITED	Director	17/10/2012	24/07/2012	Active	NO
3	U24200MH1997PTC105961	PPG ASIAN PAINTS PRIVATE LIMITED	Director appointed in casual vacancy	15/08/2012	15/08/2012	Active	NO

KEY EXECUTIVES

Name :	Mr. Yogesh Gupta
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 18.06.2012

Names of Shareholders	No. of Shares
Asian Paints Limited, India	124997
Ashwin Choksi Jointly With Asian Paints Limited, India	1
Ashwin Dani Jointly With Asian Paints Limited, India	1
Abhay Vakil Jointly With Asian Paints Limited	1
PPG Industries Securities Inc., USA	124997
PPG Industries Securities Inc., USA Jointly With PPG Coatings (Hong Kong) Company Limited, USA	1
PPG Industries Securities Inc., USA Jointly With PPG Coatings (Malaysia) Sdn. Bhd. USA	1
PPG Industries Securities Inc., USA Jointly With PPG Coatings (Singapore) Pte. Limited, USA	1
TOTAL	250000

AS ON 01.08.2012

Names of Allottees	No. of Shares
Asian Paints Limited, India	13178
Total	13178

AS ON 18.06.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturing of Paints.

GENERAL INFORMATION

No. of Employees :	Information denied by the management.
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountants
Address :	Lodha Excelus, 1^st Floor, Apollo Mills Compound, N M Joshi Marg, Mahalakshmi, Mumbai-400011, Maharashtra, India
PAN No:	AADFB6889R
Ventures :	· Asian Paints Limited · PPG Industries Securities Inc. USA

CAPITAL STRUCTURE

AS ON 18.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

AFTER 18.06.2012

Authorised Capital : Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.92.712 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		2.500
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(0.693)
NETWORTH		1.807
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		1.807
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	1.618
	Other Current Assets	0.515
	Loans & Advances	0.000
Total Current Assets		2.133
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	0.326
	Provisions	0.000
Total Current Liabilities		0.326
Net Current Assets		1.807
MISCELLANEOUS EXPENSES		0.000
TOTAL		1.807

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income
		Other Income
		TOTAL	0.044
Less	EXPENSES
		TOTAL	0.737
	PROFIT / (LOSS) BEFORE TAX		(0.693)
Less	TAX		0.000
	PROFIT / (LOSS) AFTER TAX		(0.693)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000
	BALANCE CARRIED TO THE B/S		(0.693)
	Earnings / (Loss) Per Share (Rs.)		(2.77)

KEY RATIOS

PARTICULARS		31.03.2012
PAT / Total Income	(%)	(1575.00)
Return on Total Assets (PBT/Total Assets}	(%)	(32.49)
Return on Investment (ROI) (PBT/Networth)		(0.38)
Debt Equity Ratio (Total Liability/Networth)		0.18
Current Ratio (Current Asset/Current Liability)		6.54

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for one year	Yes
12]	Profitability for one year	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	No
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

SHARE CAPITAL:

The Company has been incorporated on 5^th August, 2011, with an Authorized and Paid-up Share Capital consisting of 250,000 equity shares of Rs.10 each aggregating to Rs.25,00,000, held by Asian Paints Limited and PPG Industries Securities Inc. (50:50)

COMPANY PROSPECTS:

Asian Paints Limited (APL) decided to enhance its fourteen year relationship with PPG Industries Inc., USA (PPG), one of the world's leading coatings and specialty Products Company, in order to accelerate growth of the non-decorative coatings businesses in India. As part of this arrangement, APL and PPG have decided to enhance the existing presence In India by expanding the current 50-50 joint venture relationship, Asian PPG Industries Limited (APPG), by partnering in all segments of the coatings space in India except decorative coatings and also established the company, a second 50-50 joint venture, during the year.

The Company has filed a Composite Scheme for Merger and Demerger under sections 391-394 of the Companies Act, 1956 and other applicable provisions with the Hon’ble High Court of Judicature of Bombay in February 2012. Under the said Scheme, PPG Coatings India Private Limited (wholly owned subsidiary of PPG in India) and AP Coatings Limited (wholly owned subsidiary of Asian Paints Limited) will merge with APPG and thereafter, certain businesses will demerge into the Company. The sanction of the said Composite Scheme is subject to the approval of the Hon'ble High Court of Judicature at Bombay and such other approvals as may be necessary.

APPG currently services the Indian transportation coatings markets and this change will expand its scope to additionally service the industrial liquid, marine and consumer packaging markets and the Company will service the protective, industrial powder coatings, industrial containers and light industrial coatings markets. This would enable utilization of respective strengths in order to capture the growth in infrastructure development and globally driven markets in India.

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 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.55.20
UK Pound	1	Rs.87.79
Euro	1	Rs.70.43

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--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		39

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.