MIRA INFORM REPORT

Report Date :

24.05.2014

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 – 700071, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.03.1954
Com. Reg. No.:	21-021516
Capital Investment / Paid-up Capital :	Rs. 467.000 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 :	1795 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 44000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects healthy financial risk profile supported by strong liquidity, the company’s sizeable market share and strong brand position in the decorative paints segment. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered god 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Short term debt: A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	19.11.2013

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 DECLINED

MANAGEMENT NON – COOPERATIVE (91-33-22267462)

LOCATIONS

Registered Office :	Geetanjali Apartment, 1^st Floor, 8-B, Middleton Street, Kolkata – 700071, 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
Corporate Office / Factory 1 :	10^th Floor, DLF Plaza Tower, DLF Qutab Enclave, Phase – I, Gurgaon – 122002, 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 r.guha@akzonobel.com
Plant locations:
Coatings:	· Plot No 62 P, Hoskote Industrial Area, Pilgumpa, Village Hoskote Taluk, Bangalore – 562114, Karnataka, India · Hyderabad Works, Balanagar, Hyderabad – 500037, Andhra Pradesh, India · Plot No. GAE-1 (Part), and GAF-1 and GAF-2, Industrial Area, Ghirongi (Malanpur), Bhind – 477117, Madhya Pradesh, India
Chemicals	Plot No. E-19/20, MIDC Area, Mahad, Raigad – 402301, Maharashtra, India
Factory 2 :	Located At: Ø Mohali, Punjab Ø Hyderabad, Andhra Pradesh Ø Thane, Maharashtra  Ø Bangalore, Karnataka
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 – 400709, 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 31.03.2013

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. R Molenaar
Designation :	Director (w.e.f. 14 May 2013)
Name :	Ms. S Govil (Alternate Director to Mr. R Molenaar)
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:	Ø Ms. R S Karnad (Chairperson) Ø Mr. R Molenaar Ø Mr. R Gopalakrishnan Ø Dr. S Misra Ø Mr. A Uppal
Remuneration and Nominations Committee:
Name:	Ø Mr. R Gopalakrishnan (Chairman) Ø Ms. R S Karnad Ø Mr. N Kaviratne CBE Ø Dr. S Misra Ø Mr. A Uppal
Shareholders/Investors Grievance Committee:
Name:	Dr S Misra (Chairman) Mr. A Jain Mr. P S Basu

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a %
(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	2405481	5.16
Financial Institutions / Banks	24940	0.05
Central Government / State Government(s)	276	0.00
Insurance Companies	2083985	4.47
Foreign Institutional Investors	1061281	2.27
Any Others (Specify)	600	0.00
Foreign Financial Institutions	600	0.00
Sub Total	5576563	11.95
(2) Non-Institutions
Bodies Corporate	3225324	6.91
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3454460	7.40
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	234054	0.50
Any Others (Specify)	125578	0.27
Clearing Members	9850	0.02
Non Resident Indians	86609	0.19
Trusts	2990	0.01
Custodian	1048	0.00
Unclaimed Suspense A/c	25081	0.05
Sub Total	7039416	15.09
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 :	1795 (Approximately)
Bankers :	Ø Citibank Ø Deutsche Bank Ø HDFC Bank Ø Hongkong and Shanghai Banking Corpn. Ø Royal Bank of Scotland Ø Standard Chartered Bank Ø State Bank of India

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountants
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 (holding company up to 3 June 2012 and related party having significant influence thereafter)
Ultimate Holding Company:	Akzo Nobel N.V Netherlands
Fellow Subsidiaries :	· Akzo Nobel Amides Company Limited · Akzo Nobel Paints Lanka (Pvt) Limited · Akzo Nobel Car Refinishes Indonesia · Akzo Nobel Paints Taiwan Limited · Akzo Nobel Chang Cheng Limited · Akzo Nobel Paints Vietnam Limited · Akzo Nobel China Investment Company Limited · Akzo Nobel Polymer Chemicals (Ningbo) Company Limited · Akzo Nobel Decorative Coatings B.V. · Akzo Nobel Polymer Chemicals B.V. · Akzo Nobel Functional Chemicals bv · Akzo Nobel Polymer Chemicals LLC · Akzo Nobel Ltda-Divisao Titas EM PO · Akzo Nobel Powder Coatings (Ningbo) Company Limited · Akzo Nobel Powder Coatings SAS · Akzo Nobel Powder Coatings B.V. · Akzo Nobel Pulp and Performance Chemicals AB · Akzo Nobel Powder Coatings Korea Company Limited · Akzo Nobel REP Off BV · Akzo Nobel Powder Coatings S.A.E. · Akzo Nobel (China) Investment Company Limited · Akzo Nobel Powder Coatings South Africa (Pty) Limited · Akzo Nobel (Shanghai) Company Limited · Akzo Nobel Pty. Limited · Akzo Nobel Amides Company Limited · Akzo Nobel Surface Chemistry AB · Akzo Nobel Argentina S.A. · Akzo Nobel Surface Chemistry L.L.C. · Akzo Nobel Asia Pte. Limited · Akzo Nobel UAE Paints L.L.C. · Akzo Nobel Boya Sanayi ve Ticaret A.S. · AkzoNobel Paints Singapore Pte Limited · Akzo Nobel Car Refinishes (Singapore) Pte Limited · EKA Chemicals AB · Akzo Nobel Car Refinishes (Suzhou) Company Limited · ICI (Malaysia) Holdings Sdn Bhd · Akzo Nobel Car Refinishes Australia Pty Limited · ICI Dulux (Pty) Limited · Akzo Nobel Car Refinishes B.V. · ICI India Research and Technology Centre · Akzo Nobel Car Refinishes SL · International Paint - Finland · Akzo Nobel Chang Cheng Coatings (Guangdong) Company Limited · International Paint - Vietnam · Akzo Nobel Chemicals AG · International Paint Japan K.K. · Akzo Nobel Chemicals · International B.V. · International Paint Limited · Akzo Nobel Coatings (Dongguan) Limited · International Paint Ltda · Akzo Nobel Coatings (Jiaxing) Limited · International Paint - Ukraine · Akzo Nobel Coatings (Tianjin) Limited · International Farbenwerke GmbH · Akzo Nobel Coatings CZ, a.s. · International Färg AB · Akzo Nobel Coatings GmbH · International Maling A/S · Akzo Nobel Coatings Inc. · International Paint (Akzo Nobel Chile) Ltda · Akzo Nobel Coatings International B.V. · International Paint (Hong Kong) Limited · Akzo Nobel Coatings Limited · International Paint (Korea) Limited · Akzo Nobel Coatings S.P.A. · International Paint (Nederland) B.V. · Akzo Nobel Coatings Sdn Bhd · International Paint (Panama) Inc. · Akzo Nobel Cross-Linking Peroxides (Ningbo) Company Limited · International Paint (Taiwan) Limited · Akzo Nobel Decorative Coatings B.V. · International Paint Limited · Akzo Nobel Decorative Paints France S.A. · International Paint LLC · Akzo Nobel Functional Chemicals AB · International Paint of Shanghai Company Limited · Akzo Nobel Industrial Finishes (Hong Kong) Limited · International Paint Pazarlama Limited Sirketi · Akzo Nobel Industrial Paints, S.L. · International Paint Sdn Bhd · Akzo Nobel International Paint (Suzhou) Company Limited · International Paint Singapore Pte Limited · Akzo Nobel Ltda International Peinture S.A. · Akzo Nobel N.V. IP Singapore Pte - Vietnam · Akzo Nobel Packaging Coatings GmbH · Keum Jung Akzo Nobel Peroxides Limited · Akzo Nobel Packaging Coatings Limited · Pinturas Inca S.A. · Akzo Nobel Packaging Coatings S.A. PT · Akzo Nobel Car Refinishes Indonesia · Akzo Nobel Packaging Coatings S.A.S PT · International Paint Indonesia · Akzo Nobel Paints (Asia Pacific) Pte Limited · Shanghai ICI Research and Development and Management Company Limited · Akzo Nobel Paints (Malaysia) Sdn. Bhd. · Tianjin Akzo Nobel Peroxides Company Limited · Akzo Nobel Paints (Thailand) Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
126690000	Equity Shares	Rs.10/- each	Rs. 1267.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
46660314	Equity Shares	Rs.10/- each	Rs. 467.000 Millions

Notes:

(i) In 2011-12, 21,967,544 shares were held by Imperial Chemical Industries Limited England, the holding company. Imperial Chemical Industries Limited England ceased to be the holding company with effect from 4 June 2012 on allotment of new shares as per the scheme of merger (Refer to Note 2). The ultimate holding Company is Akzo Nobel N.V., Netherlands which does not hold any shares directly in the Company.

(ii) Reconciliation of equity shares outstanding at the beginning and at the end of the year:

PARTICULARS	AS ON 31.03.2013
	Numbers	R. In Millions
Opening balance	36,834,331	368.343
Add: Shares allotted on amalgamation	11,125,983	111.260
Less: Buy back of shares	(1,300,000)	(13.000)
	46,660,314	466.603

In the previous year, 11,125,983 shares of Rs 10 each were to be allotted in accordance with the scheme of amalgamation (Refer to Note 2), and pending such allotment were disclosed as ‘Share capital pending allotment’ in the balance sheet.

(iii) During the year, 1,300,000 equity shares (2011-12: nil) were bought back at a consideration of Rs 1,209 million (including related expenses of Rs 13 million), in terms of the shares

buy back scheme open between 2 July to 13 July 2012. This has been accounted as below:

· The nominal value of shares bought back, i.e., Rs 13 million, has been adjusted against the share capital. An equal amount has been reduced from General reserve and credited to Capital Redemption Reserve, as per the provision of the Companies Act, 1956.

· The difference aggregating to Rs 1,196 million between the consideration paid and the nominal value of shares has been adjusted against the General Reserve.

All shares bought back were extinguished during the year. The Promoter Group has further acquired 1.01 million shares in the Company on 31 July 2012. As a result of the above share buyback and their extinguishment and also of further acquisition of shares by the Promoter Group, its share holding in the company has gone up from 68.88% to 72.96%.

(iv) 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 regulation. 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.

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

PARTICULARS	AS ON 31.03.2013
	No. of shares	% of shares held
Imperial Chemical Industries Limited, England	22,977,544	49.24%
Akzo Nobel Coatings International B.V., The Netherlands	8,626,648	18.49%
Akzo Nobel Chemicals International B.V., The Netherlands	2,439,847	5.23%
Asian Paints Limited	--	--

(vi) Number of equity shares of Rs 10each bought back in the five years immediately preceding the Balance Sheet date, aggregates to 5,336,281 (2011-12: 4,036,281)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	467.000	368.000	368.000
(b) Reserves & Surplus	10586.000	13931.000	10548.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	111.000	0.000
Total Shareholders’ Funds (1) + (2)	11053.000	14410.000	10916.000
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	47.000	26.000	41.000
(c) Other long term liabilities	190.000	191.000	157.000
(d) long-term provisions	618.000	629.000	525.000
Total Non-current Liabilities (3)	855.000	846.000	723.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	4785.000	4161.000	2253.000
(c) Other current liabilities	1171.000	906.000	335.000
(d) Short-term provisions	5188.000	1757.000	1172.000
Total Current Liabilities (4)	11144.000	6824.000	3760.000
TOTAL	23052.000	22080.000	15399.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3548.000	3563.000	1419.000
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1057.000	148.000	145.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2700.000	850.000	400.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	901.000	1188.000	573.000
(e) Other Non-current assets	16.000	4.000	0.000
Total Non-Current Assets	8222.000	5753.000	2537.000
(2) Current assets
(a) Current investments	6772.000	9185.000	9450.000
(b) Inventories	3149.000	3334.000	1532.000
(c) Trade receivables	2516.000	2260.000	701.000
(d) Cash and cash equivalents	857.000	739.000	303.000
(e) Short-term loans and advances	1291.000	543.000	875.000
(f) Other current assets	245.000	266.000	1.000
Total Current Assets	14830.000	16327.000	12862.000
TOTAL	23052.000	22080.000	15399.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.20111
	SALES
		Income	21797.000	19425.000	10876.000
		Service Income	332.000	260.000	0.000
		Other Operating Income	191.000	193.000	92.000
		Other Income	1381.000	1123.000	987.000
		TOTAL (A)	23701.000	21001.000	11955.000
Less	EXPENSES
		Cost of materials consumed	10845.000	10126.000	5261.000
		Purchase of stock-in-trade	1990.000	1868.000	782.000
		Employee benefits expense	1753.000	1473.000	696.000
		Other expenses	5727.000	5269.000	3166.000
		Exceptional items	0.000	0.000	(113.000)
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	120.000	(604.000)	(268.000)
		TOTAL (B)	20435.000	18132.000	9524.000
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3266.000	2869.000	2431.000
Less	FINANCIAL EXPENSES (D)		89.000	39.000	15.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3177.000	2830.000	2416.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		386.000	366.000	217.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		2791.000	2464.000	2199.000
Less	TAX (H)		603.000	446.000	433.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		2188.000	2018.000	1766.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD
	- From Previous Year			6276.000
	- By Amalgamating Companies		8214.000	2075.000	6071.000
	Write-back of previous year dividend (excess provision		30.000	0.000	0.000
Less	APPROPRIATIONS
		Transfer to general reserve	1050.000	1040.000	790.000
		Proposed Dividend	933.000	959.000	663.000
		Tax on Dividend	634.000	156.000	108.000
		Proposed special dividend	2800.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		5015.000	8214.000	6276.000
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (FOB basis)	593.000	444.000	20.000
		Reimbursement of expenses	43.000	50.000	0.000
		Service income	260.000	215.000	0.000
		Others	11.000	13.000	15.000
	TOTAL EARNINGS		907.000	722.000	35.000
	IMPORTS
		Raw Materials	2722.000	2933.000	1042.000
		Components and Spare Parts	12.000	58.000	0.000
		Capital Goods	78.000	50.000	21.000
	TOTAL IMPORTS		2812.000	3041.000	1063.000
	Earnings / (Loss) Per Share (Rs.)		46.49	42.08	47.94

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Net Sales	5736.400
Total Expenditure	5246.300
PBIDT (Excl OI)	490.100
Other Income	101.700
Operating Profit	591.800
Interest	3.700
Exceptional Items	0.000
PBDT	588.100
Depreciation	97.800
Profit Before Tax	490.300
Tax	142.200
Provisions and contingencies	0.000
Profit After Tax	348.100
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	348.100

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	9.23	9.61	14.77
Net Profit Margin (PBT/Sales)	(%)	12.80	12.68	20.05
Return on Total Assets (PBT/Total Assets}	(%)	14.46	11.69	14.80
Return on Investment (ROI) (PBT/Networth)		0.25	0.17	0.20
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.33	2.39	3.42

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	368.000	368.000	368.000
Reserves & Surplus	10548.000	13931.000	10586.000
Net worth	10,916.000	14,299.000	10,954.000
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	10876.000	19425.000	21797.000
		78.604	12.211

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	10876.000	19425.000	21797.000
Profit	1766.000	2018.000	2188.000
	16.24%	10.39%	10.04%

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	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	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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

LITIGATION DETAILS

CALCUTTA HIGH COURT

CASE STATUS INFORMATION SYSTEM

Case Status     :   Pending

Status of          CIVIL SUITS (CS)   291        of    2012      RELIANCE COMMUNICATIONS LIMITED

                Vs.                  AKZO NOBEL INDIA LIMITED

Pet's Adv.        :   RAJIV LALL                   

Res's Adv.       :       

 Court No.        :  42     Last Listed On :  Wednesday, May 14, 2014     

0

CONNECTED APPLICATION (S)	CONNECTED MATTER (S)
No Connected Application	No Connected Matter

Case Updated on:   Wednesday, May 07,2014

BUSINESS ENVIRONMENT

GDP growth in fiscal year 2012-13 is estimated at around 5% (previous year 6.2%). The overall slowdown in the economy was visible and reflected in the low growth of just around 1% in the Index of Industrial Production (IIP) for the year 2012-13.

During the financial year 2012-13, most of the markets the Company operates in were impacted by the volatility in the macroeconomic environment. Overall revenue growth in line with market could still be achieved, thanks to the Company’s customer-centric approach, its ability to innovate and strong internal processes.

FINANCE AND ACCOUNTS

Revenue for the year at Rs 22320.000 Millions is 12% ahead of previous year, with contribution from all segments. Profit after tax for the year at Rs 2188.000 Millions is higher than previous year by 8%.

Keeping in view the current year’s performance, the Board is pleased to recommend a dividend of Rs 20 per share for the financial year 2012-13 (previous year Rs 20 per share).

In addition, the Board has, after taking into account the fund requirements of the Company to support growth and other relevant factors, also recommended a Special Dividend of Rs 60 per share for approval of the members at the forthcoming Annual General Meeting.

A sum of Rs 1.9.000 millions was remitted to the Investor Education and Protection Fund of the Central Government towards Dividend remaining unclaimed in respect of the financial year ended 31 March 2005, in terms of section 205C of the Companies Act, 1956.

The Company has not accepted any public deposits during the year and no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet.

MANAGEMENT DISCUSSION AND ANALYSIS

COATINGS

Coatings segment recorded a turnover of Rs 23269.000 Millions, compared to the previous year’s Rs 20297.000 Millions, a growth of 15%. Segment profit grew 17% to reach Rs 1644.000 Millions vs previous year’s Rs 1403.000 Millions. General slow-down in demand resulted in lower growth; INR depreciation and cost pressures were countered with effective cost management. Nevertheless, investment in strengthening the brands, developing new markets, capability building and capacity expansion were continued to support growth plans.

Decorative Paints

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

· New brand campaigns

· Expansion of Dulux decorative centres (Modern Retail stores) to provide one stop painting solutions in state-of-the-art ambience.

· Launch of new water-based wood care range.

Work on the Greenfield site at Gwalior, Madhya Pradesh is in progress for commissioning during the fiscal year 2013-14.

PERFORMANCE COATINGS

Automotive and Aerospace Coatings (A and AC) business was impacted by subdued growth in the passenger car segment, partially offset by modest growth in the commercial vehicles segment. Focus on end user service and margin management helped the business to overcome adverse economic conditions. Business is also actively pursuing its efforts to expand its footprint through certification/referrals from the automotive OEs.

Marine Coatings business segment focusses on coatings solutions for ships, trawlers, supply vessels and coastal fishing boats. The business provides comprehensive coatings solutions to new ship construction as well as maintenance and repair.

The business is battling a general slowdown in the shipping industry with pressures on both volumes and prices. A series of initiatives have been planned to expand into new segments to support growth as well as de-risking.

Protective Coatings business provides coatings and solutions to segments like il and gas, public infrastructure projects such as airports and stadia, power generation (thermal and wind energy), mining and minerals and original equipment manufacturers, etc.

Overall market for protective coatings declined mainly because of delays affecting new project launches. The business has identified new areas for generating demand in an otherwise depressed market, with a complete customer focussed solutions offer.

Coil Coatings business had a good growth momentum and the business was able to implement several new initiatives to improve its market position. The year saw new product launches and better price realisation in select product lines.

Powder Coating business topline growth was in line with the industry. Business is addressing supply constraints and is evaluating options for capacity additions.

A new range of products under the Wood Finish and Adhesives banner were launched during the year.

CHEMICALS

This segment consisting of Functional Chemicals and Surface Chemistry businesses recorded a turnover of Rs 940.000 Millions compared to the previous year’s Rs 873 million, a growth of 8%. Segment profit was Rs 144.000 Millions vs previous year’s Rs 122.000 millions, a growth of 18% due to improved product mix. Though Functional Chemicals Business saw some slowdown, Surface Chemistry Business recorded robust growth during the year, on the back of strong demand in Personal Care and Agrochemical segments.

Going forward, the Company will continue to closely monitor the global trends in the availability and price movements of all key inputs and shall strive to safeguard their supply lines. Cost reduction and value enhancement projects are also being pursued to counter inflation/ensure supply security. However, volatility in currency exchange rates could negate the effects of some of the above actions and put 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.

Notwithstanding the constraints, the Company will continue to stay focussed on growing ahead of the market, with emphasis on serving its consumers through superior technical inputs and solutions and continuous efforts to expand its footprint in areas of its strength.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 [Rs. in millions]	31.03.2012 [Rs. in millions]
Claims against the Company not acknowledged as debt	50.000	50.000
Sales tax matters under appeal	215.000	123.000
Excise matters in dispute/under appeal	88.000	88.000
Industrial relations and other matters under dispute	2.000	2.000
Bank guarantees (third parties, etc)	--	91.000
(f) 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 2010. Arising from such assessments and appellate orders, the demands aggregate Rs 1166.000 millions (2011-12: Rs 1675.000 millions), and the refunds aggregate Rs 1,186 million (2011-12: Rs 1296.000 millions). The Company as well as the Income tax department have filed appeals on these matters. Pending decisions in the appeals, neither the refunds nor the liabilities for the demands have been recognised 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 adverse impact on the financial statements.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90192325	09/11/2001 *	32,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	MANIPAL CENTRE, DICKENSON ROAD, BANGALORE, KARNATAKA - 560042, INDIA	-
2	90199062	04/01/2002 *	71,000,000.00	DEUTSCHE BANK AG	BANGALORE BRANCH, RAHEJA TOWER; NO.26-27; M.G. ROAD, BANGALORE, KARNATAKA, INDIA	-
3	90197288	04/01/2002 *	710,000,000.00	DEUTSCHE BANK	BANGALORE BRANCH M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA	-

* Date of charge modification

FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH, 2014

(Rs. In Millions)

Particulars	Quarter Ended on		Year Ended
	31.03.2014	31.12.2013	31.03.2014
	(Unaudited)	(Unaudited)	(Unaudited)
Net Sales/ Income from Operations	6012.800	6439.300	23717.100
Other Operating Income	103.400	123.700	462.000
Total	6116.200	6563.000	24179.100
Expenditure
Cost of materials consumed	3007.300	2922.100	11726.500
Purchase of Stock in trade	732.400	361.00	2204.100
Changes in inventories of Finished Goods, Work in Progress and Stock in Trade	(287.400)	5570.400	(146.100)
Employee Benefits Expense	463.500	487.500	1938.900
Depreciation/ Amortisation Expense	116.700	118.800	436.700
Other Expenditure	1567.200	1803.100	6537.500
Total	5599.700	6262.900	22697.600
Profit from operations before other income, Interest and Exceptional Item	516.500	300.100	1481.500
Other Income	225.500	43.200	566.900
Profit before Interest and Exceptional Items	742.000	343.300	2048.400
Finance Costs	1.800	3.800	14.700
Profit/ Loss from ordinary Activities before tax	740.200	339.500	2033.700
Tax Expenses	193.500	69.400	531.500
Net Profit/ Loss from ordinary Activities after tax (9-10)	546.700	270.100	1502.200
Paid-up Equity Shares Capital (Face Value of Rs. 10/- each)	466.600	466.600	466.600
. Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year)			12090.900
Basic and Diluted Earning per share	11.72	5.79	32.18
Public shareholding
- Number of Shares	12615979	12615979	12615979
- Percentage of shareholding	27.04%	27.04%	27.04%
Promoters and promoter group shareholding
a) Pledged/ Encumbered
- Number of shares	--	--	--
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	--	--	--
- Percentage of share (as a % of the total share capital of the company)	--	--	--
b) Non-encumbered
- Number of shares	34044335	34044335	34044335
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100%	100%	100%
- Percentage of share (as a % of the total share capital of the company)	72.96%	72.96%	72.96%
INVESTOR COMPLAINTS
Pending at the beginning of the quarter	--
Received during the quarter	1
disposed of during the quarter	1
Remaining unresolved at the end of the quarter	--

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

Particulars		As at 31.03.2014
	Particulars
A	EQUITY AND LIABILITIES
1	Shareholder’s Funds
	a) Share Capital	466.600
	b) Reserves & Surplus	8010.900
	Sub Total- Shareholders funds	8477.500
2	Non-current liabilities
	(a) Deferred tax liabilities (Net)	120.600
	(b) Other long term liabilities	143.000
	fc) Long term provisions	674.400
	Sub Total- Non Current Liabilities	938.000
3	Current liabilities
	(a) Trade Payables	4926.500
	(b) Other current liabilities	1174.700
	(c) Short term provisions	4872.200
	Sub Total- Current Liabilities	10973.400
	TOTAL-EQUITY AND LIABILITIES
B	ASSETS
1	Non-current assets
	(a) Fixed assets	5331.300
	(b) Non-current Investments	499.900
	(b) Long term loans and advances	1032.200
	(c) Other Non-current assets	18.000
	Sub-Total- Non current assets	6881.400
2	Current assets
	a) Current Investments	5786.300
	b) Inventories	3242.100
	c) Trade Receivables	3075.500
	d) Cash and cash equivalents	722.100
	(e) Short term loans and advances	513.500
	(f) Other current assets	168.000
	Sub-Total- current assets	13507.500
	TOTAL ASSETS	20388.900

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(RS. IN MILLIONS)

Particulars	Quarter Ended on		Year Ended
	31.03.2014	31.12.2013	31.03.2014
	(Unaudited)	(Unaudited)	(Unaudited)
1. Segment Revenue (Net Sale/ Income from)
- Coating	5864.000	6345.700	23242.900
- Other	252.200	217.300	936.200
Total	6116.200	6563.000	24179.100
Net / Income from Operation
2. Segment Results (profit before tax and Interests)
- Coating	490.000	318.700	1472.900
- Other	28.300	3.200	103.000
Total	518.300	321.900	1575.900
Finance Cost	1.800	3.800	14.700
Other Unallocated Income /(Expenditure)	223.700	21.400	472.500
Total Profit before Tax	740.200	339.500	2033.700
3. Capital Employed
(Segment Assets – Segment Liabilities)
- Coating	--	5941.600	665.200
- Other	--	626.800	644.900
Unallocated	--	5439.200	1167.400
Total Capital Employed in Segment	--	12007.600	8477.500

NOTE:

1. The above results have been approved Audit Committee and the Board of Directors at their meetings held on 16 May 2014.

2. The Statutory Auditors of the Company have audited the financial results for the year ended 31 March 2014. The figures for the quarter ended 31 March 2014, as reported in these financial results, are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of the third quarter of the relevant financial year An unqualified report has been Issued and the same 1s being filed with the Bombay and National Stock Exchanges.

3. Other expenses for the current quarter include a reversal of Rs 71.000 Million which was charged to the financial results for the quarter ended 31 December 2013 in respect of certain services received during the calendar year 2013. On the basis of agreement with the service provider, the charge for 2013 has been reversed in the current quarter. This does not impact the financial results for the year.

4. The Board of Director has recommended a dividend of Rs.15.00 per share for the ended 31^st March 2014 (previous year Rs.20.00 per share). In addition, the Board has also recommended special dividend of Rs.60.00 per share (previous year Rs.60.00 per share). The dividend will be paid after the approval of the shareholders at the forthcoming Annual General Meeting.

5. Previous year/ period figures have been regrouped/ reclassified, wherever necessary, to make them comparable to the current year/ period figures.

FIXED ASSETS:

Ø Land Leasehold

Ø Land Freehold

Ø Buildings

Ø Plant and Machinery

Ø Plant and Machinery – Under Operating Lease

Ø Rolling Stock, Motor Vehicles etc.

Ø Furniture, fittings and equipment

Ø Data processing equipment

Ø Office equipments

Ø Leasehold improvement

AS PER WEBSITE

 PRESS RELEASES

AKZONOBEL INDIA COMPLETES SIXTY YEARS

16 May 2014

Rewards shareholders with a special dividend of 60 rupees per share plus a normal dividend of 15 rupees per share

Performance Highlights

Q4 FY 2013-2014

Revenue grew 13% to 6120.000 Millions rupees 

Profit from operations rose 30% to 520.000 Millions rupees

Today, the Board of Directors of Akzo Nobel India Limited approved the audited financial results of the company for the financial year ended March 31, 2014.

The board has recommended a dividend of 15 rupees per share along with a special dividend of 60 rupees per share; which still leaves adequate surplus cash to support the future growth plans of the company.

Business performance highlights

AkzoNobel India Limited (Q4 FY 2013-14)

· Total revenue from operations is at Rs.6120.000 Millions as compared to Rs.5400.000 Millions rupees of the corresponding quarter of the previous year.

· Profit from operations is at Rs.520.000 Millions rupees as compared to Rs.400.000 Millions of the corresponding quarter of the previous year.

· Profit after tax (PAT) is at Rs.550.000 Millions rupees as compared to 620.000 Millions rupees of the corresponding quarter of the previous year.

AkzoNobel India Limited (FY 2013-14)

· Total revenue from operations is at Rs.24180.000 Millions as compared to Rs.22320.000 Millions of the previous year.

· Profit from operations is at Rs.1480.000 Millions as compared to 1500.000 Millions of the previous year, impacted by rupee depreciation.

· Profit after tax (PAT) is at Rs.1500.000 Millions as compared to Rs.2190.000 Millions of the previous year, due to reduction in Investment Income following last year’s special dividend and one-off interest on tax refunds.

Comments: 

Nihal Kaviratne, CBE, Chairman, AkzoNobel India:

“AkzoNobel India has just completed 60 years of service to its customers. And, in this spirit of celebration, I am delighted to announce that the Board has recommended a special dividend of 60 rupees per share, over and above the normal dividend of 15 rupees per share. Our cash reserves remain strong and robust, allowing us to reward our shareholders. I continue to be thankful to them for their ongoing support and encouragement.”

Jayakumar Krishnaswamy, Managing Director, AkzoNobel India:

“Despite tough market conditions in FY 2013-14, it is gratifying to see the company recording a revenue growth of 9%. After absorbing cost pressures due to rupee depreciation, particularly in mid-2013, and continuing investment in brands and capability building, the operating profit has been sustained at previous year’s level. PAT for the full year however declined mainly due to drop in investment income and one-off items included in the previous year.”

“We have also commissioned a factory at Gwalior, manufacturing water-borne decorative paints. Established at an investment of 140 crore rupees, this factory has enhanced our company’s production capacity by 30%.”

“One of our products (Dulux Superclean), launched last year has been accorded the status of ‘Product of the year 2014’. Innovation and sustainability continue to underline all our efforts in AkzoNobel India.”

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No 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.58.48
UK Pound	1	Rs.98.67
Euro	1	Rs.79.81

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	NTH

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	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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.