MIRA INFORM REPORT

Report Date :

08.05.2013

IDENTIFICATION DETAILS

Name :	AKZO NOBEL INDIA LIMITED [w.e.f. 31.03.2010]
Formerly Known As :	ICI INDIA LIMITED
Registered Office :	Geetanjali Apartment, 1^st Floor, 8-B, Middleton Street, Kolkata – 700 071, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.03.1954
Com. Reg. No.:	21-21516
Capital Investment / Paid-up Capital :	Rs.368.000 Millions
CIN No.: [Company Identification No.]	L24292WB1954PLC021516
TAN No.: [Tax Deduction & Collection Account No.]	MUMI04848E MUMI05763C
PAN No.: [Permanent Account No.]	AAACI6297A
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Paints.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 57640000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a good track record. Financially company seems to be strong. Liquidity position is good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. In view of experience promoters, the company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A1 +[Short Term Debt]
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	30.11.2012

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.

LOCATIONS

Registered Office :	Geetanjali Apartment, 1^st Floor, 8-B, Middleton Street, Kolkata – 700 071, West Bengal, India
Tel. No.	91-33-22267462
Fax No.	91-33-22277925
E-Mail	aditya_narayan@ici.com r-guha@ici.com r.guha@akzonobel.com
Website	http://www.akzonobel.co.in http://www.iciindia.com http://www.ici.com http://www.sambandh.com http://www.icirubberchemicals.com http://www.icipharms.com http://www.iciindianc.com
Corporate Office / Factory 1 :	10^th Floor, DLF Plaza Tower, DLF Qutab Enclave, Phase – I, Gurgaon – 122 002, Haryana, India
Tel. No.:	91-124-2540400
Fax No.:	91-124-2540849
E-Mail :	partho_dasgupta@ici.com saugata_banarjee@ici.com r_guha@ici.com
Factory 2 :	Located At: Mohali, Punjab Hyderabad, Andhra Pradesh Thane, Maharashtra
Headquarters :	Located at Gurgaon, Haryana, India
Research and Technology Centre :	Located at Thane, Maharashtra, India
Branch Office :	National Starch And Chemicals Plot No. 1/1 TTC Industrial Area, Thane Belapur Road, Kopar Khairane, Navi Mumbai – 400 709, Maharashtra, India
Tel. No.:	91-22-27780000
Fax No.:	91-22-27780025
E-Mail :	anil_krishna@ici.com
Depot :	8, Raghuveer Estate, Ahmedabad-382427, Gujarat, India
Tel No.:	91-79-40372130

DIRECTORS

AS ON 31.03.2012

Name :	Mr. N Kaviratne CBE
Designation :	Chairman
Name :	Mr. A Jain
Designation :	Managing Director
Name :	Mr. P S Basu
Designation :	Whole Time Director
Name :	Mr. G Armstrong
Designation :	Director
Name :	Ms. S Govil (Alternate Director to Mr. G Armstrong)
Designation :	Director
Name :	Mr. R Gopalakrishnan
Designation :	Director
Name :	Ms. R S Karnad
Designation :	Director
Name :	Dr. S Misra
Designation :	Director
Name :	Mr. A Uppal
Designation :	Director

KEY EXECUTIVES

Name :	Mr. R. Gupta
Designation :	Company Secretary
Audit Committee:
Name:	Ms. R S Karnad (Chairperson) Mr. G Armstrong Mr. R Gopalakrishnan Dr. S Misra Mr. A Uppal
Remuneration and Nominations Committee:
Name:	Mr. R Gopalakrishnan (Chairman) Mr. G Armstrong Ms. R S Karnad Mr. N Kaviratne CBE Dr. S Misra Mr. A Uppal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	34044335	72.96
Sub Total	34044335	72.96
Total shareholding of Promoter and Promoter Group (A)	34044335	72.96
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2191863	4.70
Financial Institutions / Banks	26820	0.06
Central Government / State Government(s)	276	0.00
Insurance Companies	2484053	5.32
Foreign Institutional Investors	1161207	2.49
Any Others (Specify)	600	0.00
Foreign Financial Institutions	600	0.00
Sub Total	5864819	12.57
(2) Non-Institutions
Bodies Corporate	3131199	6.71
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3370828	7.22
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	116799	0.25
Any Others (Specify)	132334	0.28
Clearing Members	21253	0.05
Non Resident Indians	79778	0.17
Trusts	6086	0.01
Any Other	25217	0.05
Sub Total	6751160	14.47
Total Public shareholding (B)	12615979	27.04
Total (A)+(B)	46660314	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	46660314	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Paints.

Products :

ITEM CODE	PRODUCT DESCRIPTION
3209	Emulsion Paints
3506	Adhesives
3812	Rubber Chemicals
3408	Synthetic Enamels
3906	Polymers

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Catalysts	Tonnes	2480	--
Paints-Liquid	KL	88540	73031
Paints-Stiff	Tonnes	3500	3892
Thinners	KL	4460	3435

NOTES:

1. N. A. - Not Applicable.

2. Production meant for sale is after adjustment of shortages, handling losses, quantity internally consumed.

3. Licensed and installed capacity in respect of intermediates, used entirely for captive consumption, have not been furnished.

4. All items are delicensed.

5. Installed capacities are as certified by the management.

6. Installed capacity of Catalysts is utilized for toll conversion operations undertaken on behalf of Johnson Matthey Chemicals India Private Limited and, therefore, quantity processed has not been included in actual production.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Citibank Deutsche Bank HDFC Bank Hongkong and Shanghai Banking Corporation Limited Royal Bank of Scotland Standard Chartered Bank State Bank of India

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountant
Address:	Building No. 10, 8^th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon-122002, Haryana, India
Tel No.:	91-124-2549191
Fax No.:	91-124-2549101
Holding Company:	Imperial Chemical Industries Limited, England
Ultimate Holding Company:	Akzo Nobel N.V Netherlands
Fellow Subsidiaries :	Akzo Nobel Chemicals (India) Limited (up to 31 March 2011) Akzo Nobel (Australia) Pty Limited Akzo Nobel International Paint South Africa (PTY) Limited Akzo Nobel (Shanghai) Company Limited (SC) Akzo Nobel Amides Company Limited Akzo Nobel Boya Sanayi Ve Akzo Nobel Boya Sanayi ve Ticaret A.S. Akzo Nobel BV, Netherlands Akzo Nobel Car Refinishes (Singapore) Pte Limited Akzo Nobel Car Refinishes (Suzhou) Company Limited Akzo Nobel Car Refinishes B.V. Akzo Nobel Car Refinishes SL Akzo Nobel Chemicals International BV Akzo Nobel Chemicals Pte. Limited Akzo Nobel Chemicals S.A. Akzo Nobel Coatings (Dongguan) Company Limited Akzo Nobel Coatings (Jiaxing) Company Limited Akzo Nobel Coatings (Tianjin) Company, Limited Akzo Nobel Coatings Inc Akzo Nobel Coatings International B.V. Akzo Nobel Coatings K.K. Akzo Nobel Coatings Limited Thailand Akzo Nobel Coatings S.A Akzo Nobel Coatings S.P.A. Akzo Nobel Coatings Vietnam Limited Akzo Nobel Cross Linking Peroxides (Ningbo) Company Limited Akzo Nobel Decorative Coatings B.V. Akzo Nobel Car Refinishes India Private Limited (up to 31 March 2011) Akzo Nobel Functional Chemicals B.V. Akzo Nobel Industrial Coatings Sdn Bhd Akzo Nobel Industrial Finishes (Hong Kong) Limited Akzo Nobel Lanka (Private) Limited Akzo Nobel Ltda Akzo Nobel Packaging Coatings GmbH Akzo Nobel Paints (Asia Pacific) Pte Limited Akzo Nobel Paints (Singapore) Pte Limited Akzo Nobel Paints (Thailand) Limited Akzo Nobel Paints Taiwan Limited Akzo Nobel Polymer Chemicals B.V. Akzo Nobel Polymer Chemicals LLC Akzo Nobel Powder Coatings (Chengdu) Company, Limited Akzo Nobel Powder Coatings (Dubai) Akzo Nobel Powder Coatings GmbH Akzo Nobel Powder Coatings Limited Akzo Nobel Powder Coatings SAE Akzo Nobel Surface Chemistry AB Akzo Nobel Surface Chemistry LLC Akzonobel Czech Republic AkzoNobel Interpon Powder Coatings USA Compania Mexicana de Pinturas International SA De CV Eka Chemicals AB Elotex AG ICI India Research and Technology Centre Akzo Nobel Coatings India Private Limited (up to 31 March 2011) ICI Paints (Malaysia) Sdn. Bhd. International Coatings Limited International Coatings Singapore Pte Limited, Singapore International Paint (Hellas) S.A. International Paint (Korea) Limited International Paint (Nederland) B.V. International Paint (Taiwan) Limited International Paint Gulf LLC International Paint Italia SPA International Paint Japan K.K. International Paint Limited International Paint LLC International Paint of Shanghai Co Limited International Paint Sdn Bhd International Paint Singapore Pte Limited International Paint-Germany International Paint-Norway International Paint Sp. Z O.O. Keum Jung Akzo Nobel Peroxides Limited Pinturas INCA PT Akzo Nobel Car Refinishes Indonesia PT International Paint Indonesia Shanghai ICI Research and Development and Management Company Limited Techni-Coat Germany GmbH The Glidden Supply Company LLC Tianjin Akzo Nobel Peroxide Company Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1266900000	Equity Shares	Rs.10/- each	Rs.1267.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36834331	Equity Shares	Rs.10/- each	Rs.368.000 Millions

NOTES:

(i) Of the above equity shares, 21,967,644 shares (2010-11: 20,776,213 shares) are held by Imperial Chemical Industries Limited, England, the holding Company. The ultimate holding Company is Akzo Nobel N.V., Netherlands and does not hold any shares in the Company directly.

(ii) During the current year and in the previous year, there has been no movement in the number of equity shares outstanding. This does not consider the shares pending allotment in accordance with the Scheme of Amalgamation. In accordance with the terms of the Scheme of Amalgamation, 11,125,983 shares of Rs 10 each, fully paid-up, will be issued and, therefore, presently have been shown as “Share capital pending allotment” in the Balance Sheet.

(iii) The Company has only one class of equity shares, having a par value of Rs 10 per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividend in Indian Rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

(iv) Shares in the Company held by each shareholder holding more than 5% of equity share capital:

SHAREHOLDERS	AS ON 31.03.2012
	No. of Shares	% of Shares Held
Imperial Chemical Industries Limited, England	21967644	59.64%
Asian Paints Limited	2010626	5.46%

(v) Number of equity shares of Rs 10 each bought back in the five years immediately preceding the Balance Sheet date, aggregates to 4,036,281 (2010-11: 4,036,281).

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		368.000	368.000	368.000
2] Share Application Pending Allotment		111.000	0.000	0.000
3] Reserves & Surplus		13931.000	10548.000	9553.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14410.000	10916.000	9921.000
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		26.000	41.000	21.000
TOTAL		14436.000	10957.000	9942.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3563.000	1419.000	1381.000
Capital work-in-progress		148.000	145.000	23.000
INVESTMENT		10035.000	9850.000	9602.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3334.000	1532.000	972.000
	Sundry Debtors	2260.000	701.000	808.000
	Cash & Bank Balances	739.000	303.000	143.000
	Other Current Assets	270.000	1.000	0.000
	Loans & Advances	1731.000	1448.000	801.000
Total Current Assets		8334.000	3985.000	2724.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4161.000	2253.000	2023.000
	Other Current Liabilities	1097.000	492.000	213.000
	Provisions	2386.000	1697.000	1552.000
Total Current Liabilities		7644.000	4442.000	3788.000
Net Current Assets		690.000	(457.000)	(1064.000)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14436.000	10957.000	9942.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	19425.000	10876.000
		Service Income	260.000	0.000
		Other Operating Income	193.000	92.000	9386.000
		Other Income	1123.000	987.000	1047.000
		TOTAL (A)	21001.000	11955.000	10433.000
Less	EXPENSES
		Cost of materials consumed	10126.000	5261.000
		Purchase of stock-in-trade	1868.000	782.000
		Employee benefits expense	1473.000	696.000
		Other expenses	5269.000	3166.000	8210.000
		Exceptional items	0.000	(113.000)
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(604.000)	(268.000)
		TOTAL (B)	18132.000	9524.000	8210.000
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2869.000	2431.000	2223.000
Less	FINANCIAL EXPENSES (D)		39.000	15.000	11.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2830.000	2416.000	2212.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		366.000	217.000	212.0000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		2464.000	2199.000	2000.000
Less	TAX (H)		446.000	433.000	407.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		2018.000	1766.000	1593.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD
	- From Previous Year		6276.000
	- By Amalgamating Companies		2075.000	6071.000	5924.000
Less	APPROPRIATIONS
		Transfer to General Reserve	1040.000	790.000	760.000
		Proposed Dividend	959.000	663.000	588.000
		Tax on Dividend	156.000	108.000	98.000
	BALANCE CARRIED TO THE B/S		8214.000	6276.000	6071.000
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (FOB basis)	444.000	20.000	0.000
		Reimbursement of expenses	50.000	0.000	5.000
		Service income	215.000	0.000	0.000
		Others	13.000	15.000	0.000
	TOTAL EARNINGS		722.000	35.000	5.000
	IMPORTS
		Raw Materials	2933.000	1042.000	671.000
		Components and Spare Parts	58.000	0.000	0.000
		Capital Goods	50.000	21.000	8.000
		Finished Goods	0.000	0.000	120.000
	TOTAL IMPORTS		3041.000	1063.000	799.000
	Earnings / (Loss) Per Share (Rs.)		42.08	47.94	42.59

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	5630.100	5234.100	6051.600
Total Expenditure	5097.200	4870.800	5553.200
PBIDT (Excl OI)	532.900	363.300	498.400
Other Income	355.500	272.600	241.200
Operating Profit	888.400	635.900	739.600
Interest	6.300	3.900	04.900
PBDT	882.100	632.000	734.700
Depreciation	93.400	100.100	97.500
Profit Before Tax	788.700	531.900	637.200
Tax	179.800	83.800	130.900
Profit After Tax	608.900	448.100	506.300
Net Profit	608.900	448.100	506.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.61	14.77	15.26
Net Profit Margin (PBT/Sales)	(%)	12.40	20.05	21.31
Return on Total Assets (PBT/Total Assets}	(%)	20.71	40.69	52.56
Return on Investment (ROI) (PBT/Networth)		0.17	0.20	0.26
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.09	0.90	0.72

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	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	Yes
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

HISTORY:

Subject a subsidiary of Imperial Chemical Industries Plc of UK, deals in Paints, Industrial Specialities (like Uniqema, Adhesive, Starch and Polymers) and Industrial Chemicals. Imperial Chemical Inds Plc of UK holds 51% equity stake and Asian Paints 9.2% stake in the Company as on Oct 24, 2003. Asian paints has picked its entire holding of 9.2 % in the company from Govt. of India which was offloaded by a auction of public notice. The company which came into existence in 1953 as Indian Explosives was renamed as IEL in 1984-85 and ICIL in 1989-90. 

BUSINESS ENVIRONMENT:

GDP growth in fiscal year 2011-12 is estimated at below 7% (previous year 8.4%). Signs of slowdown are visible

in the economy as reflected in the low growth of just around 3% in Index of Industrial Production (IIP) for the year 2011-12 (previous year 8%). Coatings market growth in 2012-13 is expected to slow down, with several challenges posed by factors like increase in rates of Excise and Service Tax and hardening of US dollar, putting pressure on costs and business profitability.

FINANCE AND ACCOUNTS:

Total revenue for the year at Rs 21001.000 millions crossed the psychologically significant level of Rs 20 billion for the first time in the Company’s history, thanks to the robust growth achieved by the Decorative Paints business and the amalgamation of three Akzo Nobel group companies with their Company. Profit before tax for the year at Rs 2464.000 millions is higher than previous year by 12%, though it is not comparable due to the amalgamation referred to above and changes in exceptional/non-recurring items. Keeping in view the current year’s performance and other relevant factors, the Board has recommended a dividend of Rs 20.00 per share for the year 2011-12 (Rs 18.00 for the previous year), which will be paid after the approval of the members at the forthcoming Annual General Meeting.

AMALGAMATION:

The amalgamation of M/s Akzo Nobel Car Refinishes India (Private) Limited, Akzo Nobel Chemicals (India) Limited and Akzo Nobel Coatings India (Private) Limited after all necessary approvals and sanction by the jurisdictional High Courts was completed on 18 May 2012. As per the scheme of amalgamation, the Accounts covered in this report include the results of the amalgamating companies with effect from 1 April 2011 being the ‘Appointed Date’ for the amalgamation.

In terms of the scheme of amalgamation, equity shares of the Company to be issued to the shareholders of the amalgamating companies will rank pari passu with the existing shares of the Company including for the purpose of determining entitlement to the Dividend for the year 2011-12. Post this issue, promoter holding in the Company will go up to 68.9%. As a result of the amalgamation and share issue as aforesaid, the capital structure of the Company has changed/will change as follows:

Particular	Pre-Amalgamation	Post-Amalgamation
	Rs. in Millions
Authorised Capital	416.900	1266.900
Paid-Up Capital	368.400	479.600

The Board is delighted to welcome the new shareholders to the Akzo Nobel India fold and look forward to their support to the Company in its endeavours to enhance shareholder value.

Arising from the amalgamation, the Company will be reporting its financials under two business segments, viz. Coatings and Others (mainly Chemicals).

MANAGEMENT DISCUSSION AND ANALYSIS:

COATINGS:

Coatings segment recorded a turnover of Rs 20,297 million, which is not comparable with the previous year’s Rs 11,733 million, on account of amalgamation. Segment profit was Rs 1,403 million vs previous year’s Rs 1,209 million, reflecting the continuing investment in penetrating new markets, strengthening the brands and capability building to support future growth and cost pressures.

DECORATIVE PAINTS:

The topline growth in the business was in line with industry growth. Some of the initiatives which supported the growth are:

• Launch of global innovations in the super-premium segment such as Dulux Guardian with anti-bacterial properties

• Launch of Dulux Weather Shield Max with SunReflect (promise of keeping homes cooler by up to 5 degrees)

• Launch of best-in-class offers such as Dulux Promise and ICI Magik in the lower price tier, which has helped establish due connect with the distribution channel

• Launch of the global ‘Let’s colour’ campaign on Dulux mother-brand in the second half of 2011 with strong media spends and on-ground activation.

The year also saw innovative ad campaigns to improve the preference for the Company’s brands. The media strategy focused on improving media efficiencies, innovative extensions of the campaign, with focus on regional media, advertising around festivals and airing smaller edits, but with greater frequency to maximise impact.

The above initiatives have helped in reinforcing the image of Dulux as an ‘Innovator’. Their Company has continued to judiciously invest in enhancing its capacity at different sites. Hyderabad Works expansion saw a 30% rise in overall waterborne paints capacity, with best-in-class energy efficiency and zero effluent technology. The plant is automated end-to-end with high productivity and consistent product quality. A new Greenfield site at Gwalior, Madhya Pradesh, has been acquired and work has commenced to establish an integrated Coatings facility.

As a measure to ensure seamless access to the global R and D of AkzoNobel in development of new products, knowhow and technologies to the business, a framework of royalty has been approved by the Board during the year. The arrangement entails a royalty charge of approx 1% of sales for the first two years, going up to approx 2% thereafter. The Board believes that the benefits flowing from the arrangement will pay for themselves over a period.

AUTOMOTIVE AND AEROSPACE COATINGS (A AND AC):

A&AC business continued the growth momentum and recorded impressive growth during the year. Strong focus on demand generation, value-added services and product upgradation resulted in the growth ahead of market, though the industry witnessed a slowdown in the demand in the later part of the year. Initiatives such as Great Finishers Club and end-user retention programmes were sustained during the year.

PERFORMANCE COATINGS (INCORPORATING MARINE, PROTECTIVE, POWDER, COIL AND PACKAGING COATINGS):

Their Marine Coatings business comprises coatings for deep sea and inland marine vessels at new construction, or for maintenance that protect against corrosion and abrasion and provide resistance to organic fouling. The business registered robust performance in the deep segment and the coastal and navy but is faced with a shrinking demand in new-build construction due to the global economic situation resulting in postponement of deliveries of new build ships and vessels. Notable users of the business’ products include the Indian Coast Guard vessels. Their Protective Coatings business offers corrosion and fire protection solutions across a range of industries like oil and gas, infrastructure projects such as airports and stadia, power generation, mining and minerals and original equipment manufacturers, to name a few. The business showed consistent growth in revenue during the year. Notable projects which have used the business’ products include the grandstand at the Buddh International Circuit at India’s first Formula1 Grand Prix race. Coil Coatings sales were depressed during the year mainly due to capacity constraints. The business continued pursuing its growth plans, through development of high gloss superior mar-resistant Top Coats for appliances and addition of new capacity of 8 million litres per annum of Coil Coating added at the Bangalore site during the year. Powder Coating is an environment friendly “Green technology” catering to customers across industries like Automotive, Architectural, Domestic appliances, etc. During the year, top line growth in the business was in line with industry, driven by conversion of liquid coatings customers to powder coatings, leveraging its eco-friendly nature, simplicity of application and cost benefits. Some of the products achieved Platinum Lead certification from SMaRT for sustainable materials rating. The business also launched a new product Mixolite, a rapid service model to cater to the trade coater market.

CHEMICALS:

Chemicals segment recorded a turnover of Rs 873 million, which is not comparable with the previous year’s Rs 188 million, on account of amalgamation. Segment profit was Rs 122 million vs previous year’s Rs 37 million.

Functional Chemicals Business reported strong growth, backed by a turnaround in the manufacturing sector in the early part of the year, with significant presence in Petrochemical, Pharmaceutical and rubber applications. As part of ongoing efforts, a few new products were introduced; the business is also working with its key customers for introducing new technology for ‘Continuous Initiator Dosing’ for PVC.

Surface Chemistry Business recorded robust growth during the year, on the back of strong demand in Personal Care segment. The business has also invested in a new lab to support the Asphalt business to co-develop technical solutions to meet customer requirements.

Going forward, their Company will continue to closely monitor the global trends in the availability and price movements of all key inputs and shall strive to safeguard the supply lines of critical materials like titanium dioxide, pigments, solvents, thinners, peroxides, chlorides, etc. Cost reduction and value enhancement projects are also being pursued to counter inflation/ensure supply security. However, sharp depreciation in rupee against US dollar could negate the effects of some of the above actions and put further pressure on margins. The Company follows a Risk Management policy under which all material foreign currency exposures are hedged through forward covers, to protect against unexpected swings in exchange rates.

Taking a holistic view of cost management, their Company has embarked on ‘Project Dynamo’ to review the cost structure across the organisation and identify action plans to reap the benefits of cost and revenue synergies arising from the amalgamation. Notwithstanding the constraints, their Company will stay focused on growing ahead of the market, with particular emphasis on delighting its consumers, through superior technical inputs and solutions and continuous efforts to expand footprint in the relevant markets.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]
Claims against the Company not acknowledged as debt	50.000	50.000
Sales tax matters under appeal	123.000	129.000
Excise matters in dispute/under appeal	88.000	85.000
Industrial relations and other matters under dispute	2.000	2.000
Bank guarantees (third parties, etc)	91.000	0.000
Income Tax matters in dispute/under appeal* *The Income Tax assessments for the Company have been completed up to the financial year ended 31 March 2007. Arising from such assessments and appellate orders, the demands aggregate to Rs 1675.000 millions (2010-11: Rs 1545.000 millions) and the refunds aggregate to Rs 1296.000 millions (2010-11: Rs 1356.000 millions). The Company as well as the Income Tax department have filed appeals on these matters. Pending decision in the appeals, neither the refunds nor the liability for the demands have been recognized in the accounts. The Company, based on its assessment of such cases, is of the view that the final outcome is not likely to have significant liabilities.

FIXED ASSETS:

• Land Leasehold
• Land Freehold
• Buildings
• Plant and Machinery
• Plant and Machinery – Under Operating Lease
• Rolling Stock, Motor Vehicles etc.
• Furniture, fittings and equipment
• Data processing equipment
• Intangible assets
• Patents, Trademarks, Knowhow etc.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2012

Rs. in Million

Sr. No.	PARTICULAR	QUARTER ENDED		YEAR TO DATE FOR NINE MONTHS ENDED
		31.12.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
1.	Net Sales/Income from Operations	5940.500	5112.500	16550.700
	Other Operating Income	111.100	121.600	365.100
	Total Income From Operations (Net)	6051.600	5234.100	16915.800
2.	Expenditure
	Cost of materials consumed	2682.700	2513.200	7780.200
	Purchase of stock in trade	487.000	519.400	1522.100
	Changes in inventories of finished goods, work in progress and stock in trade	430.500	4.700	592.500
	Employee benefits expenses	409.000	465.500	1334.900
	Depreciation and amortization expenses	97.500	100.100	291.000
	Other expenses	1544.000	1368.000	4291.500
	Total Expenses	5650.700	4970.900	15812.200
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	400.900	263.200	1103.600
4.	Other Income	241.200	272.600	869.300
5.	Profit Before Interest and Exceptional Items (3+4)	642.100	535.800	1972.900
6.	Interest	(4.900)	(3.900)	(15.100)
7.	Profit After Interest but before Exceptional Items (5-6)	637.200	531.900	1957.800
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	637.200	531.900	1957.800
10.	Tax Expense
	a) Current tax	131.500	83.300	397.800
	b) Deferred tax	(0.600)	0.500	(3.300)
11.	Net Profit from Ordinary Activities after Tax (9-10)	506.300	448.100	1563.300
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	506.300	448.100	1563.300
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	466.600	466.600	466.600
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	10.85	9.53	33.11
	b) Basic and diluted EPS after extraordinary items	10.85	9.53	33.11
17.	Public Shareholding
	-Number of Shares	12615979	12615979	12615979
	- Percentage of Shareholding	27.04	27.04	27.04
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	34044335	34044335	NA
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%	NA
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	72.96	72.96	NA

Particulars	Nine Months Ended 31.12.2012
Pending at the beginning of the quarter	--
Received during the quarter	10
Disposed of during the quarter	8
Remaining unresolved at the end of the quarter# Excluding share capital pending allotment amounting to Rs. 111.200 millions pursuant to Scheme of Amalgamation. # Since closed in January 2013	2

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2012

Rs. in Millions

Sl. No.	Particulars	Quarter Ended		Nine Months Ended
		31.12.2012	30.09.2012	31.12.2012
		(Unaudited)	(Unaudited)	(Unaudited)
1	Segment Revenue
	Coatings	5823.200	5019.900	16246.700
	Others	228.400	214.200	669.100
	Total income from operations (net)	6051.600	5234.100	16915.800
2	Segment Results [Profit before interest and tax from each segment
	Coatings	402.000	237.400	1079.600
	Others	24.800	38.000	81.200
	Total	426.800	275.400	1160.800
	Less :Interest	4.900	3.900	15.100
	Less : Other un-allocable income net of (un-allocable expenditure)	(215.300)	(260.400)	(812.100)
	Exceptional items	0.000	0.000	0.000
	Profit before tax	637.200	531.900	1957.800
3	Capital Employed
	Coatings	4328.800	5334.500	NA
	Others	461.400	445.700	NA
	Unallocated	1004.300	8508.600	NA
	Total	5794.500	14288.800	NA

FOOT NOTES:

1. Segment Revenue, Results and Capital Employed include the respective amounts identifiable to each of the segments. Other un-allocable items in segment results include income from investment of surplus funds of the company and unallocable corporate expenses.

2. Unallocated' in Capital Employed includes un-allocable corporate assets, liabilities and investments.

NOTES:

1. The above results have been approved by the Board of Directors at its meeting held on 14 February 2013. The statutory auditors of the Company have carried out a Limited Review of the financial results for the quarter and nine months ended 31 December 2012 and a modified (emphasis of matter without qualification) report has been issued with reference to para 2 below. The same has been filed with the stock exchange and is available on the website of the Company.

2. The Scheme of amalgamation ('Scheme') of Akzo Nobel Coatings India Private Limited, Akzo Nobel Car Refinishes India Private Limited and Akzo Nobel Chemicals (India) Limited (collectively referred to as 'transferor companies') with the Company became effective from 18 May 2012 with an Appointed Date of 1 April 2011. Accordingly, the results for the year ended 31 March 2012 included the results of the transferor companies for that year. Their income from operations and profit before tax for the year ended 31 March 2012 amounted to Rs. 6,250 million and Rs. 241 million respectively. The results for the quarters ended 30 June 2012, 30 September 2012 and 31 December 2012 include the results of the transferor companies for the relevant periods, whereas, the results for the quarter and nine months ended 31 December 2011 were as reported at the relevant times and have not been restated. Accordingly, the figures reported under the aforesaid quarters (including in respect of segments) are not comparable.

PRESS RELEASE:

UNAUDITED FINANCIAL RESULTS FOR Q3 OF FY 2012-13

14 February 2013

Today, the Board of Directors of Akzo Nobel India Limited approved the unaudited financial results of the company for the (third) quarter ended December 31, 2012.The current quarters performance is not directly comparable with the corresponding quarter of the last financial year since the current quarter reflects the performance of the recently merged company.

UNAUDITED FINANCIAL RESULTS - PERFORMANCE HIGHLIGHTS

AKZO NOBEL INDIA LIMITED (Q3 FY 2012-13 as against Q3 FY 2011-12)

• Net sales for the quarter is 5941 million rupees as against 3688 million rupees; a QoQ growth of 61%

• Earnings from Operations at 401 million rupees as against 210 million rupees; a QoQ growth of 90% 

• Other Income for the quarter at 241 million rupees against 155 million rupees, due to staggered maturity of investments. 

• Profit after tax (PAT) for the quarter is 506 million rupees as against 293 million rupees; a QoQ increase of 73%.

COMMENTS:

AMIT JAIN, MANAGING DIRECTOR, AKZO NOBEL INDIA:

“Innovative and value-added products launched across coatings segments during the quarter helped drive revenue and margin growth. Earnings from operations grew ahead of revenue due to the operational efficiency initiative which is being implemented in key business units.” 

ABOUT AKZO NOBEL INDIA LIMITED:

The Company was promoted by Imperial Chemical Industries (ICI) Group of UK and has been present in India for over 100 years and a significant player in the Paints industry. Over the years, it has witnessed sustained expansion, growth and transformation. In 2008, Akzo Nobel N.V. became owner of the entire equity share capital of ICI, UK, by virtue of which the Company became a member of the Akzo Nobel Group. Akzo Nobel India manufactures and markets paints, coatings and specialty chemicals. In 2012, three AkzoNobel Group companies in India, namely, Akzo Nobel Car Refinishes India Private Limited, Akzo Nobel Chemicals (India) Limited, Akzo Nobel Coatings India Private Limited got merged with Akzo Nobel India Limited, thereby expanding the Company’s presence in a wide range of coatings covering Decorative, Powder, Marine and Protective, Automotive and Aerospace, Coil and Specialty Plastics.

Dulux is the most popular brand of its Decorative coatings business while the Performance Coatings business provides solutions to many industries and sectors including automotive, consumer electronics, power, aviation, shipping and leisure craft, construction, oil and gas, water and waste water, food and beverages, etc.  Its chemicals business in India sells more than 30 products grouped under organic peroxides, metal alkyls and Polymer additives to pharmaceutical companies, polymer producers, composite and rubber industry. Every year, we try and introduce new products in India to further strengthen our position as an innovative specialty chemicals company.

With employee strength of over 1700, Akzo Nobel India has manufacturing sites, offices and distribution network spread across the country. Its commitment to Health, Safety, Environment and Security (HSE and S) has been amongst the best in class globally, with due care being taken to protect the people and the environment.

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 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.54.16
UK Pound	1	Rs.83.88
Euro	1	Rs.71.00

INFORMATION DETAILS

Report Prepared by :

TPT

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	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.