MIRA INFORM REPORT

Report Date :

02.10.2013

IDENTIFICATION DETAILS

Name :	PIRAMAL GLASS LIMITED
Registered Office :	Nicholas Piramal Tower, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.02.1998
Com. Reg. No.:	11-113433
Capital Investment / Paid-up Capital :	Rs.809.160 Millions
CIN No.: [Company Identification No.]	L28992MH1998PLC113433
TAN No.: [Tax Deduction & Collection Account No.]	SRTG00256E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Glass Containers for the Cosmetics and Perfumery, Pharmaceuticals and Specialty Food and Beverages Industries.
No. of Employees :	3997 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 19170000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears sharp dip in profit margins of the company. However, overall financials of the company appears to be sound and healthy. Trade relations reported to be fair. Business is active. Payment terms are reported to be regular. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB+ (Fund Based Limit)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	February, 2013

Rating Agency Name	ICRA
Rating	A2 (Non-Fund Based Limit)
Rating Explanation	Strong degree of safety and low credit risk.
Date	February, 2013

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 DENIED

Management Non-Cooperative (91-22-30466666)

LOCATIONS

Registered Office / Corporate Office 1 :	Nicholas Piramal Tower, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013, Maharashtra, India
Tel. No.:	91-22-30466666
Fax No. :	91-22-24902363
E-Mail :	Uday.mhatre@piramal.com corporate.secretarial@piramal.com
Website :	http://www.gujaratglass.com
Area:	14000 sq. ft
Location :	Rented
Corporate Office 2 :	Piramal Tower Annexe, 6^th Floor, Peninsula Corporate Park, Off. Worli Naka, Lower Parel (West), Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-30466969 / 30466901
Fax No.:	91-22-24908824
E-Mail :	gglass@bom3.vsnl.net.in
Plant Location :	plant I ONGC Road, Tarsadi Village, Kosamba, District Surat – 394 120, Gujarat, India Tel. No.: 91-2629-231701/5 Fax No.: 91-2629-231271 E-Mail: mprasad@gujaratglass.co.in plant ii Off. Masar Chowkadi, Masar Gajera Road, Village Ucchad, Tehsil Jambusar, District Bharuch - 392150, Gujarat, India Tel. No.: 91-2644-233313 – 7 Fax No.: 91-2644-233282 E-Mail: sagarwal@gujaratglass.co.in
Overseas Plant Location :	· Piramal Glass Ceylon PLC, Poruwadanda, Wagawatte, Horana, Srilanka · Flat River Glass, 1000 Taylor Avenue, Park Hills, Missouri, MO 63601, USA · PGI Decora, 918 E, Malaga Road, Williamstown, NJ 08094, USA

DIRECTORS

As on: 31.03.2013

Name :	Mr. Ajay G. Piramal
Designation :	Chairman
Address :	Piramal House 61, Pochkhnawala Road, Worli, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	03.08.1955
Qualification :	B.Sc., M.M.S. (Bom)., A.M.P. (Harvard)
Date of Appointment :	06.02.1998
Name :	Ms. Vinita Bali
Designation :	Director
Name :	Mr. Vimal Bhandari
Designation :	Director
Name :	Mr. Dharendra Chadha
Designation :	Director
Name :	Mr. Shitin Desai
Designation :	Director
Date of Appointment :	30.04.2013
Name :	Mr. Jiten Doshi
Designation :	Director
Name :	Mr. Bharat Kewalramani
Designation :	Director
Address :	232, Maker Tower – A, Cuffe, Parade, Mumbai – 400005, Maharashtra India
Date of Birth/Age :	03.03.1960
Date of Appointment :	02.04.1998
Name :	Mr. Suhail Nathani
Designation :	Director
Date of Appointment :	08.02.2013
Name :	Ms. Swati A. Piramal
Designation :	Director
Address :	Piramal House 61, Pochkhnawala Road, Worli, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	28.03.1956
Date of Appointment :	12.03.1998
Name :	Mr. Vijay Shah
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholder		No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	417140	0.52
Bodies Corporate	59071553	73.00
Any Others (Specify)	651493	0.81
Any Other	651493	0.81
Sub Total	60140186	74.32
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	60140186	74.32
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1671335	2.07
Financial Institutions / Banks	551	0.00
Foreign Institutional Investors	307369	0.38
Sub Total	1979255	2.45
(2) Non-Institutions
Bodies Corporate	6730140	8.32
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4640763	5.74
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4980080	6.15
Any Others (Specify)	2445562	3.02
Non Resident Indians	218659	0.27
Clearing Members	227047	0.28
Trusts	20027	0.02
Foreign Corporate Bodies	1360886	1.68
Overseas Corporate Bodies	618942	0.76
Foreign Nationals	1	0.00
Sub Total	18796545	23.23
Total Public shareholding (B)	20775800	25.68
Total (A)+(B)	80915986	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)	80915986	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl. No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Mr. Ajay Gopikishan Piramal	16362	0.02	0.02
2	Dr. (Mrs.) Swati A Piramal	20201	0.02	0.02
3	Mr. Anand A Piramal	173057	0.21	0.21
4	Mrs. Nandini Piramal	174420	0.22	0.22
5	Mrs. Lalita G Piramal	19125	0.02	0.02
6	Ajay G Piramal (Karta Of Ajay G Piramal Huf)	9446	0.01	0.01
7	Ajay G Piramal (Karta Of Gopikishan Piramalhuf)	4529	0.01	0.01
8	Pel Management Services Private Limited - Trustee Of The Sri Hari Trust	56361424	69.65	69.65
9	Phl Fininvest Private Limited	2021395	2.50	2.50
10	Ajay G Piramal (Trustee)	651493	0.81	0.81
11	Piramal Enterprises Limited of Trustee of the Piramal Enterprises Executive Trust	688734	0.85	0.85
	Total	60140186	74.32	74.32

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Maestro Ventures Private Limited	3328946	4.11	4.11
2	DSP Blackrock Micro Cap Fund	1312674	1.62	1.62
3	Vijay Kantilal Shah	1165897	1.44	1.44
4	Indiahold Ltd	1360886	1.68	1.68
5	AADI Financial Advisors LLP	914850	1.13	1.13
6	Saidarshan Business Centres Private Limited	1314886	1.63	1.63
	Total	9398139	11.61	11.61

BUSINESS DETAILS

Line of Business :

Manufacturer of Glass Containers for the Cosmetics and Perfumery, Pharmaceuticals and Specialty Food and Beverages Industries.

GENERAL INFORMATION

No. of Employees :

3997 (Approximately)

Bankers :

• Allahabad Bank
• HDFC Bank Limited
• Exim Bank
• Corporation Bank
• Axis Bank Limited
• The Hongkong and Shanghai Banking Corporation Limited
• Central Bank of India
• IndusInd Bank Limited
• DBS Bank Limited
• Yes Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Term Loans from banks
Rupee Term Loan from IndusInd Bank (Payable in 20 Qtr installment of ` 20 Million Each starting from Dec-09 to Sept-2014)	40.000	120.000
Rupee Term Loan from AXIS Bank (Payable in 12 Qtr installment of ` 41.67 Million each starting from June -2015 to Mar-18)	500.000	0.000
ECB Loan – AXIS Bank (Payable in 12 Qtr. installment of ` 45.26 Million each starting from Aug-13 to May-16)	407.330	508.800
ECB Loan – HSBC Bank (` 108.60 Million in three equal half yearly installments starting from Sep -14 and balance ` 135.80 Million payable on Mar-16)	461.640	508.800
Axis Bank Buyers’ Credit (Payable in FY 2014-15 ` 258.54 million)	258.540	510.050
Rupee Term Loan from HDFC Bank (` 500.00 Million repayable in 3 equal annual installments from May 16 to May-18 and ` 500.00 Million repayable in 12 equal quarterly installments from Jan-15 to Oct-18)	1000.000	0.000
SHORT-TERM BORROWINGS
Loans Repayable on Demand from banks
Cash Credit	332.580	44.940
Short Term Loans from Central Bank of India	0.000	1500.000
Short Term loan from Indostar Finance Company Limited	500.000	0.000
Total	3500.090	3192.590

Notes:

1. The Rupee Term Loan / ECB is secured by mortgage and pari pasu charge of immovable properties of the company, both present and future. They are further secured by hypothecation of all movables and movable machinery, machinery

spares and accessories, stocks, both present and future, subject to prior charge created/to be created in favour of banks for securing the borrowing for cash credit from Bank Facilities and the charge on specific assets referred to in note no 2 below:

2. Loans under Buyer’s Credit are secured by an exclusive charge on the assets and equipments procured under the facility.

3. Cash Credit facilities are secured by Hypothecation of current assets namely, stocks, bills receivables and book debts and all other movables, both present and future, of the Company.

4. The Short Term Loan from Indostar Finance Company Limited secured by mortgage and second charge of immovable properties of the Company, both present and future. It is further secured by second charge on all movables and movable machinery, machinery spares and accessories both present and future.

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	Race Course Circle, Vadodara - 390007, Gujarat, India
Subsidiaries Companies :	Piramal Glass Ceylon PLC. Piramal Glass International Inc. Piramal Glass-USA Inc. Piramal Glass Flat River LLC Piramal GIass Williamstown LLC Piramal Glass (UK) Limited Piramal Glass Europe SARL
Associated Companies :	Piramal Enterprises Limited (Formerly known as Piramal Healthcare Limited) Piramal Corporate Services Limited (Formerly known as Piramal Enterprises Limited) Piramal Realty Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
82000000	Equity Shares	Rs.10/- each	Rs.820.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
80923500	Equity Shares	Rs.10/- each	Rs.809.240 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80915986	Equity Shares	Rs.10/- each	Rs.809.160 Millions

NOTES:

a. Reconciliation of shares outstanding at the beginning & at the end of Reporting Period:	Equity Shares in Nos.
Issued, Subscribed and paid-up shares
Opening Balance	80915986
Issued during the year	--
Closing Balance	80915986

b. Terms and Rights attached to equity shares:

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets after discharging all liabilities of the Company, in proportion to their shareholding.

	31st march 2013
c. Details of shareholders holding more than 5% shares in the Company:
PEL Management Services Private Limited - Trustee of The Shri Hari Trust.
- No of shares	56351424
- % Holding	69.65%

d. At the time of the Company's Rights Issue of 62940500 equity shares of Rs. 10/- each for cash at a price of Rs. 30/- per share (including a share premium of Rs. 20/-) per equity share in 2009, entitlements relating to 4,88,764 Rights shares were held in abeyance, of which 481922 shares pertained to Overseas Corporate Bodies (OCB), which were held in abeyance pending requisite approval of the Reserve Bank of India (RBI).

Since then, one of the OCBs having Rights entitlement of 481250 equity shares received the requisite RBI approval and the Company has during the previous financial year 2011-12, allotted the said shares having received the full subscription amount. Consequently, the paid up share capital of the Company has increased to Rs. 809.160 millions comprising 80915986 shares of Rs. 10 each and security premium reserve stand increased by Rs. 9.630 millions.

As regards the other OCB having Rights entitlement of 672 shares, RBI has denied its approval during the previous financial year 2011-12 for the same and consequently, no allotment shall be made in respect of these shares.

Consequent to the above, total Rights entitlements held in abeyance stands reduced from 488764 shares to 6842 shares.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	809.160	809.160	804.350
(b) Reserves & Surplus	3985.110	4031.340	3568.130
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	4794.270	4840.500	4372.480
(3) Non-Current Liabilities
(a) long-term borrowings	2796.140	1820.150	1281.440
(b) Deferred tax liabilities (Net)	172.740	201.380	135.160
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	1.940
Total Non-current Liabilities (3)	2968.880	2021.530	1418.540
(4) Current Liabilities
(a) Short term borrowings	4866.140	5453.570	3956.370
(b) Trade payables	1055.160	924.430	733.560
(c) Other current liabilities	861.210	550.660	820.010
(d) Short-term provisions	864.100	834.080	731.290
Total Current Liabilities (4)	7646.610	7762.740	6241.230
TOTAL	15409.760	14624.770	12032.250
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7828.690	6546.500	6103.970
(ii) Intangible Assets	13.470	10.700	27.990
(iii) Capital work-in-progress	100.260	1513.640	394.500
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	592.630	592.630	592.630
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	78.170	495.500	688.420
(e) Other Non-current assets	95.610	67.350	54.250
Total Non-Current Assets	8708.830	9226.320	7861.760
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1918.480	1393.200	1114.220
(c) Trade receivables	3607.410	3044.050	2581.430
(d) Cash and cash equivalents	145.520	127.460	14.070
(e) Short-term loans and advances	885.640	632.890	340.030
(f) Other current assets	143.880	200.850	120.740
Total Current Assets	6700.930	5398.450	4170.490
TOTAL	15409.760	14624.770	12032.250

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	10154.800	8547.960	7622.940
		Other Income	221.090	198.720	113.940
		TOTAL (A)	10375.890	8746.680	7736.880
Less	EXPENSES
		Cost of Materials Consumed	2580.000	2015.940	1767.590
		Purchases of Traded Goods	67.270	96.250	47.790
		Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(448.500)	(204.680)	(30.490)
		Employee Benefits Expense	1241.080	912.820	808.240
		Other Expenses	5208.290	3497.380	3034.860
		TOTAL (B)	8648.140	6317.710	5627.990
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1727.750	2428.970	2108.890
Less	FINANCIAL EXPENSES (D)		731.040	575.070	448.170
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		996.710	1853.900	1660.720
Less/ Add	DEPRECIATION/ AMORTISATION (F)		933.970	773.430	740.070
	PROFIT BEFORE TAX (E-F) (G)		62.740	1080.470	920.650
Less	TAX (H)		14.300	297.740	234.800
	PROFIT AFTER TAX (G-H) (I)		48.440	782.730	685.850
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1019.220	643.910	353.830
Less	APPROPRIATIONS
		Proposed dividend on Equity Shares	80.920	283.210	281.520
		Dividend Distribution Tax thereon	13.750	45.940	45.660
		Transfer to General Reserves	1.210	78.270	68.590
	BALANCE CARRIED TO THE B/S		971.770	1019.220	643.910
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	5542.580	4944.860	4102.040
		Technical Fees	109.000	99.620	83.860
		Dividend received from Piramal Glass Ceylon PLC	80.230	66.380	0.000
	TOTAL EARNINGS		5731.810	5110.860	4185.900
	IMPORTS
		Raw Materials	661.840	346.300	297.480
		Capital Goods and Spares	315.390	898.700	407.050
	TOTAL IMPORTS		977.230	1245.000	704.530
	Earnings Per Share (Rs.)		0.60	9.67	8.53

QUARTERLY RESULTS

PARTICULARS	30.06.2013
	1^st Quarter
	UnAudited
Net Sales	2667.600
Total Expenditure	2230.200
PBIDT (Excl OI)	437.400
Other Income	224.500
Operating Profit	661.900
Interest	261.600
Exceptional Items	0.000
PBDT	400.300
Depreciation	234.400
Profit Before Tax	165.900
Tax	64.700
Provisions and contingencies	0.000
Profit After Tax	101.200
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	101.200

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.47	8.95	8.86
Net Profit Margin (PBT/Sales)	(%)	0.62	12.64	12.08
Return on Total Assets (PBT/Total Assets}	(%)	0.43	8.63	8.34
Return on Investment (ROI) (PBT/Networth)		0.01	0.22	0.21
Debt Equity Ratio (Total Debt/Networth)		1.60	1.50	1.20
Current Ratio (Current Asset/Current Liability)		0.88	0.70	0.67

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

(Rs. In Millions)

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term debt	626.010	122.880	541.630
Total	626.010	122.880	541.630

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	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	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	Yes
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

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Deferred Payment Liabilities
Sales Tax Deferment Loan (Unsecured Payable in 6 equal annual installments from 2011 to 2016)	128.630	171.50
Deposits	0.000	1.000
SHORT-TERM BORROWINGS
Packing Credit From:
Corporation Bank	432.490	460.460
ANZ Bank	434.480	632.480
HSBC Bank	433.930	662.860
CITI Bank	135.770	0.000
Short Term loan From:
CITI Bank	892.080	598.000
HSBC Bank	550.000	0.000
HDFC Bank	0.000	750.000
YES Bank	400.000	250.000
DBS Bank	750.000	750.000
Deposits	4.810	4.830
Total	4162.190	4281.130

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10444408	26/07/2013	1,500,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, 1ST FLOOR, MMO BUILDING, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	B82773755
2	10439383	10/07/2013	500,000,000.00	Axis Bank Limited	AXIS HOUSE, C-2, WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B80565534
3	10435441	14/05/2013	275,000,000.00	Axis Bank Limited	CORPORATE BANKING BRANCH, AXIS HOUSE, GROUND FLOOR, C2, WADIA INTERNATIONAL CENTER, P B MARG, MUMBAI, MAHARASHTRA - 400013, INDIA	B79015251
4	10403063	11/01/2013	1,000,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA	B68115963
5	10367790	06/07/2012	530,000,000.00	THE HONG KONG AND SHANGHAI BANKING CORPORATION LIM  ITED	LEVEL 10, 1 QUEENS ROAD CENTRAL, HONG KONG, - 000000, HONG KONG	B44470037
6	10339933	10/02/2012	1,090,000,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G  ARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B34023788
7	10312725	22/09/2011	455,000,000.00	Axis Bank Limited	CORPORATE BANKING BRANCH, BOMBAY DYEING MILLS COMPOUND, MUMBAI, MAHARASHTRA - 400025, INDIA	B23393135
8	10290366	20/05/2011	450,000,000.00	Axis Bank Limited	CORPORATE BANKING BRANCH, BOMBAY DYEING MILLS COMPOUND, MUMBAI, MAHARASHTRA - 400025, INDIA	B14341515
9	10275915	04/03/2011	230,000,000.00	BANK OF BARODA	CORPORATE FINANCIAL SERVICES, FORT BRANCH, 10/12, 4TH FLOOR, MUMBAI SAMACHAR MARG, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	B09087586
10	10181777	30/09/2009	400,000,000.00	INDUSIND BANK	425 DADASAHEB BHADKAMKAR MARG, MUMBAI, MAHARASHTRA - 400004, INDIA	A71338420
11	90147275	29/11/2004 *	640,000,000.00	ALLAHABAD BANK	INDUSTRIAL FINANCE BRANCH; APPEJAY HOUSE, 3; DINS  HAW WACHHA ROAD, MUMBAI, MAHARASHTRA - 400020, INDIA	-
12	90145996	29/08/2012 *	3,250,000,000.00	Allahabad Bank	INDUSTRIAL FINANCE BRANCH, ALLAHABAD BANK BLDG, SECOND FLOOR, 37, MUMBAI SAMACHAR MARG, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	B57729014

* Date of charge modification

OPERATIONS REVIEW

As part of the long term strategy of the Company, they continue to focus on Cosmetics and Perfumery (C and P) segment. During the year this segment grew by 17% from Rs. 7052.000 Millions to Rs. 8232.000 Millions. The growth is being driven by new customers, new products developed and sold globally.

They renewed their focus on Specialty Food and Beverages (SF and B) Segment. During the year this segment grew by 8% from Rs. 3503.000 Millions to Rs. 3789.000 Millions.

In the Pharmaceutical segment, they maintained their leadership position in the domestic market. During the year this segment grew by 27% from Rs. 3223.000 Millions to Rs. 4090.000 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS

Business Overview:

Subject is a manufacturer of glass containers for the Cosmetics and Perfumery, Pharmaceuticals and Specialty Food and Beverage industries. Subject manufactures a wide range of glass bottles and jars, in sizes ranging from 2 ml to 2.5 liters. PGL has manufacturing facilities in India, USA and Sri Lanka.

Market Overview:

Market Size

Cosmetics and Perfumery Global market size is estimated to be US$ 2.4 – US$ 2.7 billion, growing at 4% per annum.

Pharmaceutical Global market size is estimated to be US$ 2.1 - US$ 2.4 billion, growing at 4% per annum.

Specialty Food and Beverages is estimated to be US$ 1.5 - US$ 1.7 billion, growing at 6% per annum.

Cosmetics and Perfumery Business:

The glass containers manufactured in Cosmetics and Perfumery are used to fill nail polish, perfumes, skin care creams, foundations, attars, etc. The main raw materials for glass manufacturing are semi snow quartz, soda ash, lime stone powder.

Subject enjoys a global market share of ~ 6.5% and is the only significant player from Asia with presence in the Premium segment.

Pharmaceuticals Business:

It caters to the requirements of Pharmaceutical Industry for packaging like molded vials for injectibles and bottles for syrups, droppers and infusions In the Indian market, Subject enjoys a leadership position in the domestic markets with about 35% market share.

Specialty Food and Beverages Business:

The uniquely designed and colored glass containers are used to fill boutique wine and high-end liquor products.

GROWTH DRIVERS

Cosmetics and Perfumery (C and P)

The Cosmetics and Perfumery Division of Piramal Glass caters to international marquee customers like LVMH, Yves Rocher, YSL, Coty, Unilever, Revlon, L’Oreal, P and G, Elizabeth Arden, Estee Lauder etc. apart from local C and P brand owners in international markets like Erkul Kozmetic, Compagnie De Diffussion, Niasi, Expak, Baralan International, Estico Limited, Revolline Limited These customers use the glass bottles and jars for products like nail polish, make-up foundations, perfumes, skin care creams etc.

Traditionally, the C and P glass bottles market has been dominated by European players like SGD, Pochet, Gerresheimer, Heinz, Zignago, Bormiolli Rocco and Bormiolli Luigi. Most of these players have been in existence for more than a hundred years.

This industry is characterized by capital as well as manual intensity (although manufacturing is highly automated, operations like forming, sorting and decorations are skill based and manual intensive).

PGL is the youngest player in this segment. It entered into this segment in 2000 with foray into nail polish market, and later mass perfumes. Within a few years of entering, PGL became a dominant player in the nail polish glass bottle market globally. Today PGL dominates this segment. It makes 1 out of every 2 nail polish bottles manufactured globally (PGL manufactured about 2.0 billion pieces in FY13)

In 2007, after achieving leadership position in Nail Polish and Mass Perfume markets, under a long term strategy initiative, Subject entered the Premium Segment of C and P and today this segment is the prime focus of the company. In terms of capacity Piramal Glass has the second largest installed capacity globally (545 TPD) and currently enjoys a global market share of ~ 6.5% (sales of Rs. 8,232 Millions). Investment in capacities, leveraging skills from their USA operations, leveraging skills of technical experts from Europe coupled with focus on world class business processes through Manufacturing Excellence initiative has helped the PGL to attain this position.

Subject, is the fastest growing player in this segment, with a growth of 18.4% CAGR (5 years) compared to market growth of 4% globally.

The drivers, for growth of PGL have been increased cost consciousness among western customers coupled with boom in consumption of C and P in emerging economies due to growing young population, higher percentage of working women and increasing disposable income. The demand from emerging economies, particularly the BRIC countries has been significant.

In the premium C and P market, these factors have resulted in PGL getting recognized as a respectable glass manufacturer from Asia, as an alternate supplier to the European glass makers. Successful execution of initial projects has helped PGL in gradually winning a higher percentage of the share of wallet from existing customers – which is the main area of future effort and focus, as most of the leading perfumery companies are already their customers.

Pharmaceutical:

The Pharmaceutical glass container division manufactures amber bottles, amber and flint vials for liquid oral formulations, injectibles, etc. Products manufactured conform to US, Indian and European pharmacopeia in Type I, Type II and Type III formulations. PGL is a leading supplier of glass containers to both multinational and Indian pharmaceutical companies like GlaxoSmithKline, Pfizer, Cipla, Abbott, Alembic, Ranbaxy, E-Merck, Aventis, Dabur , Himalaya drugs, Dr. Reddy’s Laboratories etc.

In FY2013, this segment continued to see competition in the form of replacement with PET especially in the Oral formulations and amber glass bottles in the range of 60 ml to 100 ml. PGL has focused on export markets, mainly USA, and currently 47% of PGL Pharmaceutical division comprises of exports.

The high-end Borosilicate Glass (or Type-I Glass) market has been an attractive growth segment for PGL, particularly for exports to USA as also “deemed exports” in India as more and more injectibles manufacturing facility in India receive US FDA approval.

Specialty Food and Beverages:

The Specialty Food and Beverages division provides bottles for wine, liquor and food which are often unique in design and decoration. This business is very freight intensive and hence localized. Piramal Glass is catering to this segment from Sri Lanka and USA. PGL has consciously grown in exports from Sri Lanka, earlier mainly to India, and today to Far East and Australia. In Sri Lanka the strategy has been to migrate to more and more premium customers. In USA, focus is on winning new customers and new brands in the specialty liquor segment.

Since the US acquisition, they have gradually been able to increase their sales in this segment through acquisition of new customers and retaining old ones. USA operations have an edge over its European competitors due to lower freight. PGL caters to global customers like Diageo, Pernod Ricard, Cadbury Schweppes, UB Group, etc.

Strategy Summary

1. Continued focus on C and P segment. The growth in capacity and skill will help the company in growing both in Premium as well as Mass segment. Growth will also be fuelled by continued efforts to transition some of the C and P production from the USA facility to India.

2. Improvement in product mix and geography mix for Pharmaceutical segment.

3. In Sri Lanka and USA, focus on growth in high-end Specialty bottles segment.

BOARD OF DIRECTORS

Mr. Ajay G. Piramal

Mr. Ajay G. Piramal is the Promoter and Chairman of the Company. Applauded as an entrepreneur and innovator, he enabled the Piramal Group to evolve from a Textile centric business to a conglomerate with diversified business interests across Pharmaceuticals, Packaging, Financial Services, Real Estate and Information Management.

Mr. Piramal did his B. Sc (Hons) from Bombay University (1975). He completed his Master in Management Studies from Jamnalal Bajaj Institute of Management Studies (Class of 1977); and also did an Advanced Management Programme from Harvard Business School (1992).

Mr. Piramal is also the Chairman of Piramal Foundation which makes significant contributions to the community through various CSR initiatives including Piramal Swasthya, Piramal Water, Source for Change and Piramal Foundation for Education Leadership. He is also the Chairman of Health Management and Research Institute (HMRI), a registered nonprofit organization based in Hyderabad which works towards making healthcare accessible, affordable and available to underserved communities, including in partnership with government agencies.

Mr. Piramal is also the Chairman of Pratham India, which is the largest non-governmental organization in the education sector and reaches out to 33 Millions children through its “Read India” campaign.

He is the Chairman of the Board of Governors of Indian Institute of Technology, Indore and is also Member, Board of Dean’s Advisors, Harvard Business School (HBS), Boston.

Ms. Vinita Bali

Ms. Vinita Bali is the Managing Director of Britannia Industries, India’s publicly listed premier food company with revenue in excess of USD 1 Billion. She joined Britannia in January 2005 following 16 years of overseas assignments in a variety of marketing and general management positions in different countries, with eminent multinationals like The Coca-Cola Company and Cadbury Schweppes PLC. Ms. Bali has lived and worked in the UK, Nigeria, South Africa, Chile and the USA, in addition to India.

In the eight years that Ms. Bali has been in Britannia, she has steered the Company on a Health and Nutrition course and delivered its highest ever growth. Britannia has also been at the forefront of several initiatives to address malnutrition, both as a part of its business model and through the Britannia Nutrition Foundation, created in 2009.

Ms. Bali also serves as an Independent Director on the Boards of Syngenta International AG and GAIN (Global Alliance for Improved Nutrition), in addition to other corporate boards in India. She is among the 27 global leaders appointed by the UN to help improve maternal and child health as part of its SUN (Scaling Up Nutrition) initiative.

Ms. Bali has been recognized in forums nationally and internationally and won several awards for her various contributions to business.

Mr. Vimal Bhandari

Mr. Vimal Bhandari is a Commerce Graduate from Mumbai University and a Chartered Accountant. Mr. Bhandari is a proficient and a proven top management professional with over twenty five years of experience in a range of businesses in the financial services industry.

He is currently the CEO and Managing Director of Indostar Capital Finance Private Limited, a wholesale credit institution sponsored by private equity houses like Everstone, Goldman Sachs, Ashmore and others with an initial capitalization of Rs. 9000.000 Millions.

Prior to joining Indostar Capital, he was Country Head of Aegon N.V., the leading Dutch financial services player, which has established a life insurance business in India.

In his early career, Mr. Bhandari was with IL and FS, the Indian infrastructure financing and financial services institution, of which twelve years were spent as the Executive Director on the Board of Directors of the Company. He was directly responsible for the financial services business of IL and FS.

Mr. Bhandari is also on the Board of various public limited companies as an Independent Director. He has also been a member of the Executive Committee of National Stock Exchange of India and is an Executive Committee member of FICCI, the apex Chamber of Commerce.

Mr. Suhail Nathani

Mr. Suhail Nathani is the co-founder of the Economic Laws Practice in India and has been a partner there since 2001. He has been named by Chambers and Partners, Legal 500 and International Who’s Who as a leading lawyer in India. Mr. Nathani obtained his MA in Law degree from Cambridge University, England, where he was a Cambridge Commonwealth Scholar. Subsequently he obtained his LLM from Duke University, USA. He is admitted to practice in India and New York. He is a member of the US Court of International Trade.

After qualifying, Mr. Nathani was based in Washington, D.C., for seven years working in the field of telecommunications law and policy. Thereafter, Mr. Nathani returned to India and practiced as a lawyer and established his own firm in New Delhi. In 2001, he co-founded Economic Laws Practice in Mumbai. The firm has offices at Mumbai, Delhi, Ahmedabad and Pune. He has advised on several investments in the manufacturing, services and real estate sector in India. With around two decades of experience, his areas of specialization include corporate and commercial matters, competition and international trade.

He serves on the board of several public limited companies. He also serves on the panel of lawyers for SEBI and on the WTO Panel for the Government of India. He has represented the Government before the WTO in Geneva and the Competition Commission up to the Supreme Court in India.

Mr. Shitin Desai

Mr. Shitin Desai presently serves as a Consultant to Bank of America Merrill Lynch. Prior to this, he served as an Executive Vice-Chairman of DSP Merrill Lynch Limited and is one of its founding Directors. He also served as an Independent Non-Executive Director of Kalpataru Power Transmission Limited from March 2006 to May 2010. He has more than 35 years experience in the financial services sector. At present he is the Chairman on the Board of Trustees of DSP Blackrock Trustee Company Private Limited He was earlier on the Board of Company from December 2005 to January 2011.

Mr. Desai is also a Director on the Board of Foundation for Promotion of Sports and Games, a Not-for-Profit Company which assists potential athletes to achieve their dream.

Mr. Desai was also a member on the Committee on Takeovers appointed by SEBI, Investor Education and Protection Fund constituted by the Ministry of Corporate Affairs, the RBI Capital Market Committee, Advisory Group of Securities Market of RBI and Insider Trading Committee. He was also a member of FICCI. Mr. Desai is a regular speaker at various platforms on finance and is a Commerce Graduate from University of Mumbai.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
a) Disputed Liability
- Central Excise authorities	10.670	9.040
- Sales Tax Authorities	—	—
- Income Tax	7.250	5.500
b) Counter Guarantees issued to others	422.380	260.720
- Counter guarantees given for working capital loan and overdraft facilities of US $ 50.50 million (PY US $ 50.50 million) granted to the wholly owned subsidiary in USA viz. Piramal Glass USA, Inc	2715.500	2569.440
- Counter guarantee given for insurance cover granted to the wholly owned subsidiary in USA viz. Piramal Glass USA, Inc	96.670	81.410
- Counter guarantees given for working capital loan of EURO 16.50 (PY EURO 16.50) millions granted to the wholly owned subsidiary in Europe viz. Piramal Glass Europe SARL	80.000	112.050
c) The Company has provided Corporate Guarantees and/or has given pari passu charge on the entire fixed assets (movable and immoveable) both present and future (except assets having exclusive charge) of the Company situated at Jambusar and Kosamba, for Term Loans aggregating to US $ 20 million granted to the wholly owned subsidiary in USA viz. Piramal Glass USA, Inc.	1086.200	476.320

STANDALONE FINANCIAL AUDITED RESULTS FOR THE YEAR ENDED JUNE 30, 2013

Rs. In Millions

Sr. No.	Particulars	Year ended 30.06.2013
		Unaudited
1	Income from Operations
(a)	Net Sales / Income from Operations (Net of excise duty)	2649.400
(b)	Other Operating Income	18.200
	Total Income from Operations (Net)	2667.600
2	Expenses
(a)	Cost of materials consumed	667.200
(b)	Purchase of stock-in-trade	25.700
(c)	Changes in inventories of finished Goods. work-in-progress and stock in trade	5.400
(d)	Employee benefits expense	336.800
(e)	Depreciation and Amortization expenses	234.400
(f)	Energy Cost	630.400
g)	Freight Cost	208.600
(h)	Foreign Exchange (Gain) / Loss (Net)	(224.500)
(i)	Other Expenditure	356.100
	Total Expenses	2240.100
3	Profit / (Loss) from Operations before Other Income, finance cost and Exceptional Items	427.500
4	Other Income	-
5	Profit/ (loss) from ordinary activities before finance cost and Exceptional Items	427.500
6	Finance Cost	261.600
7	Profit/ (loss) from ordinary activities after finance cost but before Exceptional Items	165.900
8	Exceptional Items	-
9	Profit/ (Loss) from Ordinary Activities before tax	165.900
10	Tax Expense	64.700
11	Net Profit/ (Loss) from Ordinary Activities after tax	101.200
12	Extraordinary Item (net of tax expenses Rs NIL )	-
13	Net Profit/ (Loss) for the period	101.200
14	Share of profit / (loss) of associates	-
15	Minority Interest	-
16	Net Profit/ (Loss) after taxes, minority interest and share of profit / loss of associates	101.200
17	Paid-up equity share capital (Face Value Rs.10/- each)	809.200
18	Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	-
19. i	Earning per Share (before extraordinary items)
a	Basic	1.25
b	Basic and Diluted	1.25
19. ii	Earning per Share (after extraordinary items)
a	Basic	1.25
b	Basic and Diluted	1.25
A	A. PARTICULARS OF SHAREHOLDING
1	Public shareholding
	Number of shares	20775800
	Percentage of shareholding	25.68%
2	Promoter and Promoter Group Shareholding
	a) Pledged/ Encumbered
	Number of shares	-
	Percentage of shares (% of shareholding of promoters and promoter group)	-
	Percentage of shares (% of total share capital of the Company)	-
	b) Non encumbered
	Number of shares	60140186
	Percentage of shares (% of shareholding of promoters and promoter group)	100.00%
	Percentage of shares (% of total share capital of the Company)	74.32%
B	B. INVESTOR COMPLAINTS	3 Months ended 30^th June 2013
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Remaining unresolved at the end of the Quarter	Nil

Notes:

1. The Standalone financial results for the Quarter ended June 30, 2013, have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 22 July 2013. The statutory auditors of the company have carried out a limited review of the above standalone financial results for the quarter ended June 30 2013.

2. The activity of the company falls under one segment i.e. Manufacturing of Glass Containers. Accordingly there are no separate reportable segments as per Accounting Standard 17 on "Segment Reporting" issued by ICAI.

3. Figures of the previous year / period are regrouped wherever necessary.

FIXED ASSETS

Tangible Assets

• Freehold Land
• Buildings
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Vehicles

Intangible Assets

• 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.62.36
UK Pound	1	Rs.101.20
Euro	1	Rs.84.54

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.