MIRA INFORM REPORT

Report Date :

10.05.2013

IDENTIFICATION DETAILS

Name :	PPG ASIAN PAINTS PRIVATE LIMITED (w.e.f. 18.09.2012)
Formerly Known As :	ASIAN PPG INDUSTRIES PRIVATE LIMITED (w.e.f. 10.08.2012) ASIAN PPG INDUSTRIES LIMITED ASIAN PPG INDUSTRIES PRIVATE LIMITED
Registered Office :	6-A, Shanti Nagar Estate, Santacruz (East), Mumbai – 400 055, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.02.1997
Com. Reg. No.:	11-105961
Capital Investment / Paid-up Capital :	Rs.292.500 Millions
CIN No.: [Company Identification No.]	U24200MH1997PTC105961
TAN No.: [Tax Deduction & Collection Account No.]	MUMA11672D
PAN No.: [Permanent Account No.]	AAACA8832H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Automobile Parts, Components Paints and Power Varnishes.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 8200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a fine track record. The latest financial i.e. 2011-2012 are not available. Ms. Saita Raju, Legal Manager has provided all information but the financials are not verified. The financials of the year 2010-2011, the company seems to be performing good. Financial position of the company appears to be sound. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA- (Long Term Rating)
Rating Explanation	High degree of safety. It carry very low credit risk.
Date	July 27, 2012

Rating Agency Name	CRISIL
Rating	A1+ (Short Term Rating)
Rating Explanation	Very strong degree of safety. It carry lowest credit risk
Date	July 27, 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.

INFORMATION PARTED BY

Name :	Ms. Saita Raju
Designation :	Legal Manager
Contact No.:	91-22-30568700
Date :	09.05.2013

LOCATIONS

Registered Office :	6-A, Shanti Nagar Estate, Santacruz (East), Mumbai – 400 055, Maharashtra, India
Tel. No.:	91-22-30568700
Fax No.:	91-22-26528044
E-Mail :	sagar.khade@asianppg.com saita.raju@ppgasianpaints.com
Website :	www.asianppg.com
Area :	3500 Sq. ft.
Location :	Owned
Head Office :	158, Vidyanagri Marg, CST Road, Dani Wooltex Compound, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India
Tel. No.:	91-22-30568700/ 8800
Fax No.:	91-22-30568764/ 26528044
E-Mail :	chetan@asiasppg.com customercare@asianppg.com
Factory 1 :	APPG – Ankleshwar, 2602, GIDC Industrial Estate, Ankleshwar - 393 002, Gujarat, India
Factory 2 :	APPG – LBS Marg, Post Box No.7318, Bhandup, Mumbai - 400 078, Maharashtra, India

DIRECTORS

As on: 28.05.2012

Name :	Mr. Ashwin Suryakant Dani
Designation :	Director
Address :	48-Home Villa, Co-op Housing Society, Krishna Sanghi Path, Mumbai-400007, Maharashtra, India
Date of Birth/Age :	24.10.1942
Date of Appointment :	01.08.1997
DIN No.:	00009126
Name :	Mr. Manish Mahendra Chokshi
Designation :	Director
Address :	402, Shivtirth No.2, B. Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	09.12.1967
Qualification :	B.S. (Chem Engineering) and MBA
Date of Appointment :	08.08.2007
DIN No.:	00026496
Name :	Ms. Cynthia Ann Niekamp
Designation :	Director
Address :	915 S Glenhurst Dr, Birmingham-48009, USA.
Date of Birth/Age :	13.05.1959
Qualification :	MBA
Date of Appointment :	22.03.2009
DIN No.:	02789698
Name :	Mr. John Rich Alexander
Designation :	Director
Address :	403, Alpen Court, Wexford Pennsylvania 15090, USA
Date of Birth/Age :	31.08.1955
Date of Appointment :	02.11.2004
Name :	Mr. Viktoras K Sekmakas
Designation :	Director
Address :	House D7, Regalia Bay No.88, Wong Ma Koli Road, Stanley, Hong Kong
Date of Birth/Age :	04.04.1960
Name :	Mr. Mike Horton
Designation :	Alternate Director to Ms. Cynthia Niekamp
Address :	House 72, Windsor Place, 2222 Jain He Road, Shanghai - 203336, China
Date of Birth/Age :	20.03.1959
Date of Appointment :	22.03.2009

KEY EXECUTIVES

Name :	Mr. Sagar Shrikrishna Khade
Designation :	Secretary
Address :	B-14, Golden Rock CHS, Sunder Nagar, Kalina, Mumbai – 400 098, Maharashtra, India.
Date of Birth/Age :	06.05.1979
Date of Appointment :	03.02.2006
PAN No.:	AHXPK5536D
Name :	Mr. Jagadish Gururaja Acharya
Designation :	Manager
Address :	31, Sr. Sannidhi, Shantiniketan CHS, YariI Road, Andheri (West), Mumbai – 400 061, Maharashtra, India
Date of Birth/Age :	07.11.1956
Date of Appointment :	12.08.2011
PAN No.:	AJGPA7582C
Name :	Ms. Saita Raju
Designation :	Legal Manager

MAJOR SHAREHOLDERS

As on: 28.05.2012

Names of Shareholders	No. of Shares
Asian Paints Limited, India	14624997
PPG Industries Securities Inc., USA	14624997
PPG Industries Securities Inc. jointly with PPG Coatings (Hong Kong) Company Limited, USA	1
PPG Industries Securities Inc. jointly with PPG Coatings (Malaysia) SDN BHD, USA	1
PPG Industries Securities Inc. jointly with PPG Industries (Singapore) Pte Limited, USA	1
Asian Paints Limited, India jointly with Ashwin Choksi	1
Asian Paints Limited, India jointly with Ashwin Dani	1
Asian Paints Limited, India jointly with Abhay Vakil	1
Total	29250000

As on: 01.08.2012

Names of Allottees	No. of Shares
PPG Industries Securities INC, USA	12438566
Asian Paints Limited, India	12359500
Asian Paints Limited, India	79066
Total	24877132

Equity Share Break up (Percentage of Total Equity)

As on: 28.05.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Automobile Parts, Components Paints and Power Varnishes.

Products :

Product Description	ITC Code
Synthetic Enamels other Colours	32089003

Exports :

Products :

Finished goods

Countries :

· USA

· Europe

· Germany

Imports :

Products :

Raw materials

Countries :

· China

· Australia

· Korea

· Malaysia

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Licensed Capacity	Installed Capacity	Actual Production (kl)
Paints and Coatings	10400.00	4200.00	2331.50
Paints and Coatings*	Not Applicable	Not Applicable	15697.35
			18028.85

Note:

* Produced by outside processors

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

600 (Approximately)

Bankers :

· State Bank of India, Killick House, Fort, Mumbai – 400 001, Maharashtra, India

· State Bank of India, Madame Cama Road, Nariman Point , Mumbai - 400 001, Maharashtra, India

· State Bank of India, Corporate Accounts Group, Central Office, Express Towers, 20th Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India

· State Bank of India, Corporate Accounts Group Branch, Voltas House, 23, J.N. Heredia Marg, Mumbai – 400 001, Maharashtra, India

Tel No.: 91-22-22614784

· Citi Bank N.A., Sri Lanka

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	326.900	278.800
Total	326.900	278.800

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Tel. No.:	91-22-66679000
Fax No.:	91-22-66679025
PAN No.:	AACFD4815A
Associates/Subsidiaries :	Faaber Paints Private Limited, India CIN No.: U24222TN1986PTC012894

CAPITAL STRUCTURE

After 28.05.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
130000000	Equity Shares	Rs.10/- each	Rs.1300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
54127132	Equity Shares	Rs.10/- each	Rs.541.271 Millions

As on 28.05.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29250000	Equity Shares	Rs.10/- each	Rs.292.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		292.500	292.500	292.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1779.530	1450.340	1165.150
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2072.030	1742.840	1457.650
LOAN FUNDS
1] Secured Loans		326.900	278.800	463.470
2] Unsecured Loans		422.720	150.000	82.430
TOTAL BORROWING		749.620	428.800	545.900
DEFERRED TAX LIABILITIES		63.510	58.290	51.440
TOTAL		2885.160	2229.930	2054.990
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		792.340	685.250	656.120
Capital work-in-progress		8.680	5.280	0.460
INVESTMENT		40.100	40.100	40.100
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1189.560	1047.540	771.100
	Sundry Debtors	1058.620	866.670	805.570
	Cash & Bank Balances	76.490	47.400	46.220
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	567.690	440.360	311.700
Total Current Assets		2892.360	2401.970	1934.590
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	591.140	701.070	445.940
	Other Current Liabilities	215.520	173.040	107.340
	Provisions	41.660	28.560	23.000
Total Current Liabilities		848.320	902.670	576.280
Net Current Assets		2044.040	1499.300	1358.310
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2885.160	2229.930	2054.990

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5645.490	4435.350	3727.360
		Other Income	72.240	69.560	15.580
		TOTAL (A)	5717.730	4504.910	3742.940
Less	EXPENSES
		Consumption materials changes inventories	3862.390	2984.020	3387.770
		Manufacturing service costs	422.000	324.770
		Employee related expenses	420.150	311.930
		Administrative selling other expenses	453.070	373.800
		Research development expenditure	23.340	13.050
		TOTAL (B)	5180.950	4007.570	3387.770
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		536.780	497.340	355.170
Less	FINANCIAL EXPENSES (D)		31.090	23.950	37.980
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		505.690	473.390	317.190
Less/ Add	DEPRECIATION/ AMORTISATION (F)		65.470	52.890	47.300
	PROFIT BEFORE TAX (E-F) (G)		440.220	420.500	269.890
Less	TAX (H)		108.770	134.090	112.850
	PROFIT AFTER TAX (G-H) (I)		331.450	286.410	157.040
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1316.340	1031.150	886.840
	BALANCE CARRIED TO THE B/S		1645.530	1316.340	1031.150
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	6.260	11.250
	TOTAL EARNINGS		NA	6.260	11.250
	IMPORTS
		Raw Materials	NA	1208.860	799.670
		Capital Goods	NA	5.440	11.150
		Others	NA	598.900	529.820
	TOTAL IMPORTS		NA	1813.200	1340.640
	Earnings Per Share (Rs.)		11.25	9.75	4.93

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	8000.000	6500.000

The above information has been parted by Mr. Saita Raju.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.80	6.36	4.20
Net Profit Margin (PBT/Sales)	(%)	7.80	9.48	7.24
Return on Total Assets (PBT/Total Assets}	(%)	11.95	13.62	10.42
Return on Investment (ROI) (PBT/Networth)		0.21	0.24	0.19
Debt Equity Ratio (Total Debt /Networth)		0.36	0.25	0.37
Current Ratio (Current Asset/Current Liability)		3.41	2.66	3.36

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
Creditors due others	591.140	701.070	445.940
Total	591.140	701.070	445.940

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN 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

OPERATIONS DURING THE YEAR

The passenger car market witnessed a phenomenal growth last year, reaching sales of almost 3 million passenger vehicles, spurred by overall improvement in economic fundamentals and easy availability of cheap credit. With a sizable and growing working class that is seeing rapid increases in disposable income, Indian automotive industry is set to have transited to a high growth trajectory.

Across the board, customers sought to reduce consumption of coatings per vehicle through productivity improvement measures. Customers also forced cost downs through aggressively leveraging the competition amongst the coatings suppliers.

Major improvements were effected in appearance, quality and durability of products offered to customers. Prices and availability of raw materials were a matter of concern throughout the year. Measures adopted to contain costs and expand volume of business paid off and helped the Company achieve its targets.

Total gross sales after discounts but before excise duty increased to Rs.6164.780 millions from Rs.4768.820 millions in the previous year- a growth of 29.3%. The profit after tax rose to Rs.330.320 millions from Rs.285.800 millions.

The consolidated sales were Rs.6377.720 millions and the profit after tax was Rs.337.390 millions.

SUBSIDIARY:

Faaber Paints Private Limited (FPPL), a wholly owned subsidiary of the Company, reported sales of Rs.232.650 millions this year as compared to Rs.150.060 millions for the financial year ended 31^st March 2010. Profit after tax declined to Rs.7.020 millions as compared to Rs.14.780 millions in the previous year.

EXPANSION OF THE JOINT VENTURE:

Both the shareholders of the Company have announced plans to accelerate growth of the non-decorative coatings businesses in India. As part of this arrangement, Asian Paints Limited and PPG Industries Inc. will enhance their existing non-decorative coatings presence in India by expanding the scope of the Company and also establish a second 50-50 joint venture. The modalities are being worked on. The arrangement is subject to regulatory approvals and is expected to be completed during 2011.

The company 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. The proposed second joint venture will service the protective, industrial powder, industrial containers and light industrial coatings markets.

ENTRY IN SRI LANKAN MARKET:

In its maiden foray outside India, the company has decided to enter the Sri Lankan Auto Refinish market by setting up its own subsidiary. This wholly owned subsidiary is expected to be operational by May 2011.

MANUFACTURING FACILITY:

The permitted capacity of the facility at Sriperumbudur is 10,400 KL per annum; the present installed capacity is 7,500 KL per annum. It has been decided to further expand the capacity of the plant to 9,140 KL at a cost of approximately Rs.300.000 millions

PROSPECTS:

Notwithstanding the consequential impact of higher oil prices on global economy due to continuing geo-political tensions in the MENA region and the earthquake and tsunami crisis in Japan, the directors feel that the Indian economy will grow at faster clip compared to many countries in the developed world. The Indian automotive market will continue to witness significant action as more foreign players seek to step up investments in this market. The company will continue to invest in new capacity, introduce new products, invest in extended enterprise solutions and people centric initiatives to shore up the company’s share of the market and to maintain performance.

The prospects of continuing high price of fuel and uncertain economic conditions have led to doubts about the sustainability of the pace of growth that the automotive industry has witnessed in the recent past. However, while there may be a slow down temporarily owing to high base effect, the directors are confident about the long term prospects of the industry and feel that the company is in a position to take advantage of the growth in the market.

UNSECURED LOAN

Unsecured Loan	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Working capital loans banks unsecured	422.720	150.000
Total	422.720	150.000

CONTINGENT LIABILITIES IN RESPECT OF:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Details of other guarantees given	40.000	21.400
Details of disputed sales tax	133.990	120.240

FIXED ASSTES:

Tangible Assets:

· Leasehold Land

· Factory Building

· Plant and Machinery

· Computers

· Furniture and Fixtures

· Office Equipments

Intangible Assets:

· Dealership Network

· Customer List

· Shade Formulations

· Motor manufacturers approval

· Technical know-how

· Software

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.54.24
UK Pound	1	Rs.84.30
Euro	1	Rs.71.36

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	RAJ

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	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.