MIRA INFORM REPORT

Report No. :	303284
Report Date :	14.01.2015

IDENTIFICATION DETAILS

Name :	PIDILITE INDUSTRIES LIMITED
Registered Office :	Regent Chambers, 7^th Floor, 208, Nariman Point Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.07.1969
Com. Reg. No.:	11-014336
Capital Investment / Paid-up Capital :	Rs. 512.640 Millions
CIN No.: [Company Identification No.]	L24100MH1969PLC014336
TAN No.: [Tax Deduction & Collection Account No.]	MUMP06924B
PAN No.: [Permanent Account No.]	AAACP4156B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Consumer and Bazaar Products consist of mainly Adhesives, Sealants, Art Materials and Construction Chemicals and also Industrial Products consists of Organic Pigments, Industrial Resins and Industrial Adhesives.
No. of Employees :	4651 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (72)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having fine track record. Financial position of the company is sound and healthy. Net worth of the company is strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long-term Rating = AA+
Rating Explanation	High degree of safety and very low credit risk.
Date	October 20, 2014

Rating Agency Name	CRISIL
Rating	Short-term Rating = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	October 20, 2014

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE

[CONTACT NO.: 91-22-28357000]

LOCATIONS

Registered Office :	Regent Chambers, 7^th Floor, 208, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22822708/ 28367085/ 7089
Fax No.:	91-22-22043969
E-Mail :	anp@pidilite.com info@pidilite.com pcpatel@pidilite.com pil@pidilite.com savithri.parekh@pidilite.com investor.relations@pidilite.co.in
Website :	www.pidilite.com www.doctor-fixit.com
Corporate / Head office:	Ramkrishna Mandir Road, Office Mathuradas Vasanji Road, Andheri (East), Mumbai – 4000059, Maharashtra, India
Tel. No.:	91-22-28357000/ 30831000/ 67697000/ 7949
Fax No.:	91-22-28357008/ 28357700/ 28216007
E-Mail :	drfixit@pidilite.com Investor.relations@pidilite.co.in
Factory :	· Plot No. A-22, M. I. D. C. Mahad, District Raigad - 402309, Maharashtra, India Tel. No. 91-2145-232043/ 44/ 45/ 46 Fax. No. 91-2145-232054/ 232048 · Plot No. 78-79, G. I. D. C. Industrial Estate, Vapi, District Valsad - 396195, Gujarat, India Tel. No. 91-2638-230215/ 230521 Fax. No. 91-2638-230199 · Plot No. 23, G. I. D. C. Industrial Estate, Vapi, District Valsad - 396195, Gujarat, India Tel. No. 91-2638-230520/ 231517 Fax. No. 91-2638-231085 · Plot No. 25,26,39,40 Jawahar Co-operative Industrial Estate, Kamothe, Panvel, District Raigad - 410206, Maharashtra, India Tel. No. 91-22-27421021/ 27421856 Fax. No. 91-22-2742332 · Plot No. 19, Taloja Industrial Estate, Taloja, District Raigad, Maharashtra, India Tel. No. 91-22-27410376/ 77 Fax. No. 91-22-27410376 · Daman (Union Territory of India) · Kala Amb (Himachal Pradesh) · Baddi (Himachal Pradesh) · Secunderabad (Andhra Pradesh) · Guwahati (Assam)
Branch Offices :	Located at: · Ahmedabad · Bangalore · Chandigarh · Chennai · New Delhi · Kanpur · Nagpur

DIRECTORS

AS ON 31.03.2014

Name :	Mr. M. B. Parekh
Designation :	Chairman cum Managing Director
Name :	Mr. N. K. Parekh
Designation :	Joint Managing Director
Name :	Mr. R. M. Gandhi
Designation :	Director
Name :	Mr. N. J. Jhaveri
Designation :	Director
Name :	Mr. B S. Mehta
Designation :	Director
Name :	Mr. Ranjan Kapur
Designation :	Director
Name :	Mr. Yash Mahajan
Designation :	Director
Name :	Mr. Bharat puri
Designation :	Director
Name :	Mr. Sanjeev Aga
Designation :	Director
Name :	Mr. A. B. Parekh
Designation :	Whole Time Director
Name :	Mr. A N Parekh
Designation :	Whole Time Director
Name :	Mr. R Sreeram
Designation :	Whole Time Director
Name :	Mr. Uday Khanna
Designation :	Director (w.e.f.03.04.2014)
Name :	Meera Shankar
Designation :	Director (w.e.f.30.07.2014)

KEY EXECUTIVES

Name :	Mrs. Savithri Parekh
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Category of Shareholders	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	270064262	52.68
Bodies Corporate	85907932	16.76
Sub Total	355972194	69.44
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	2901606	0.57
Sub Total	2901606	0.57
Total shareholding of Promoter and Promoter Group (A)	358873800	70.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	12217116	2.38
Financial Institutions / Banks	294385	0.06
Central Government / State Government(s)	150026	0.03
Insurance Companies	5008990	0.98
Foreign Institutional Investors	81618326	15.92
Sub Total	99288843	19.37
(2) Non-Institutions
Bodies Corporate	8101158	1.58
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	38660236	7.54
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	7718293	1.51
Sub Total	54479687	10.63
Total Public shareholding (B)	153768530	30.00
Total (A)+(B)	512642330	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	512642330	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholders	Details of Shares held
		No. of Shares held	As a %
1	Abha Ajay Parekh	19,68,000	0.38
2	Ajay Balvantray Parekh	1,07,86,148	2.10
3	Ajay Balvantray Parekh	3,83,62,696	7.48
4	Ami Ajay Parekh	43,68,616	0.85
5	Ami Ajay Parekh	3,550	0.00
6	Amrita Ajay Parekh	19,68,000	0.38
7	Anuja Ankur Shah	16,000	0.00
8	Anuja Ankur Shah	1,71,600	0.03
9	Apurva Narendrakumar Parekh	27,84,910	0.54
10	Apurva Narendrakumar Parekh	8,00,000	0.16
11	Bharati Narendrakumar Parekh	89,06,086	1.74
12	Darshana Bimal Mody	64,95,404	1.27
13	Darshana Bimal Mody	4,596	0.00
14	Gulabben Himatlal Parekh	2,61,716	0.05
15	Harish Himatlal Parekh	20,76,592	0.41
16	Harshada Harvadan Vakil	51,900	0.01
17	Harvadan	42,300	0.01
18	Himatlal Kalyanji Parekh	48,11,464	0.94
19	Himatlal Kalyanji Parekh	166	0.00
20	Indumati Chimanlal Parekh	20,134	0.00
21	Indumati Chimanlal Parekh	20,234	0.00
22	Ishita Rajiv Amersey	29,01,606	0.57
23	Jasna Raoul Thackersey	36,15,126	0.71
24	Jimeet D Sanghavi	91,600	0.02
25	Jimeet D Sanghavi	300	0.00
26	Kalpana Apurva Parekh	9,00,000	0.18
27	Kalpana Apurva Parekh	30,00,000	0.59
28	Kalpana Apurva Parekh	27,64,334	0.54
29	Kamalini Rashmikant Parekh	8,01,934	0.16
30	Kamalini Rashmikant Parekh	20,000	0.00
31	Kanta Balvantray Parekh	33,85,410	0.66
32	Madhukar Balvantrayparekh	82,12,004	1.60
33	Madhukar Balvantrayparekh	4,87,65,564	9.51
34	Mala Madhukar Parekh	93,60,992	1.83
35	Malay Rashmikant Parekh	1,00,000	0.02
36	Malay Rashmikant Parekh	61,600	0.01
37	Monisha Harish Parekh	2,00,000	0.04
38	Mrudula Sushilkumar Parekh	35,12,120	0.69
39	Narendrakumar Kalyanji Parekh	63,16,092	1.23
40	Narendrakumar Kalyanji Parekh	4,40,01,656	8.58
41	Narendrakumar Kalyanji Parekh	40,14,430	0.78
42	Panna Deepak Sanghavi	80,166	0.02
43	Pareet D Sanghavi	95,600	0.02
44	Parul Harish Parekh	10,39,208	0.20
45	Purvee Apurva Parekh	8,00,000	0.16
46	Rashmikant Himatlal Parekh	23,56,844	0.46
47	Rashmikant Himatlal Parekh	534	0.00
48	Sushil Kumar Kalyanji Parekh	3,69,96,720	7.22
49	Sushil Kumar Kalyanji Parekh	56,11,916	1.09
50	Urvi Malay Parekh	40,000	0.01
51	Devkalyan Sales Private Limited	2,60,74,280	5.09
52	Harton Private Limited	1,22,07,634	2.38
53	Ishijas Chemical Private Limited	2,46,30,038	4.80
54	Kalva Marketing And Services Limited	13,82,628	0.27
55	Parekh Marketing Limited	7,96,700	0.16
56	Parkem Dyes & Chemicals Private Limited	12,76,510	0.25
57	Pidichem Private Limited	76,14,916	1.49
58	The Vacuum Forming Company Private Limited	1,14,62,186	2.24
59	Trivenikalyan Trading Private Limited	4,63,040	0.09
	Total	35,88,73,800	70.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholders	No. of Shares held	Shares as %
1	Genesis Indian Investment Company Limited -General Sub Fund	39863145	7.78
2	Government Pension Fund Global	5450000	1.06
	Total	45313145	8.84

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as %
1	Genesis Indian Investment Company Limited -General Sub Fund	39863145	7.78
	Total	39863145	7.78

BUSINESS DETAILS

Line of Business :	Manufacturer of Consumer and Bazaar Products consist of mainly Adhesives, Sealants, Art Materials and Construction Chemicals and also Industrial Products consists of Organic Pigments, Industrial Resins and Industrial Adhesives.
Brand Names :	· Fevicol · Terminator · M-Seal · Holdtite · Fevikwik
Agencies Held :	--
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

4651 (Approximately)

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· Indian Overseas Bank

· Corporation Bank

· ICICI Bank

· The Royal Bank of Scotland N.V.

· HDFC Bank

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans repayable on demand from banks Working Capital Loan (Cash Credit accounts)	76.840	0.000
Total	76.840	0.000
SHORT TERM BORROWINGS Working Capital Loan from Banks (Cash Credit Accounts) are secured by way of first charge on the stock of Raw Material, Finished Goods, Packing Material, Stock in Process, Bills Receivable and Book Debts and by way of second charge on the entire Plant and Machinery of the Company including Stores and Spares. Further, these loans are secured by way of an Equitable Mortgage on the Land and Building of the Company’s unit at Kondivita, Mumbai.

Banking Relations :	--
Solicitors and Advocates :	Wadia Ghandy and Company
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Internal Auditors :
Name :	Mahajan and Aibara Ernst and Young
Significant Influence :	Parekh Marketing Limited Kalva Marketing and Services Limited
Substantial Interest in Voting Power (Associate) :	Vinyl Chemicals (India) Limited
Subsidiary Company :	· Nitin Enterprises · Fevicol Company Limited · Bhimad Commercial Co Private Limited · Madhumala Traders Private Limited · Pagel Concrete Technologies Private Limited · Building Envelope Systems India Limited · Percept Waterproofing Services Limited · Hybrid Coatings · Pidilite International Pte Limited · Pidilite Middle East Limited · Pulvitec do Brasil Industria e Comercio de Colas e Adesivos Ltda · Pidilite USA Inc · Jupiter Chemicals (LLC) · PT Pidilite Indonesia · Pidilite Speciality Chemicals Bangladesh Private Limited · Pidilite Innovation Centre Pte Limited · Pidilite Industries Egypt – SAE · Pidilite Bamco Limited · Pidilite South East Asia Limited · Bamco Supply Services Limited · PIL Trading Egypt (LLC) · Pidilite Industries Trading (Shanghai) Co Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
700,000,000	Equity Shares	Re. 1/- each	Rs. 700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
512,642,330	Equity Shares	Re. 1/- each	Rs. 512.640 Millions

a. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period

PARTICULARS	31st March 2014
	Number of Shares	Rs. in Millions
Equity Shares
Shares outstanding at the beginning of the year	512,642,330	512.640
Shares issued during the year upon conversion of Foreign Currency Convertible Bonds	--	--
Shares outstanding at the end of the year	512,642,330	512.640

b. Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in the proportion of their shareholding.

During the year ended 31st March, 2014, the amount of per share dividend recognised as distribution to equity shareholders is 2.70 (2.60).

c. Details of shareholders holding more than 5% shares in the Company:

PARTICULARS	31st March 2014
	Number of Shares held	% of Holding
Madhukar Balvantray Parekh	56,977,568	11.11
Narendrakumar Kalyanji Parekh	54,332,178	10.59
Ajay Balvantray Parekh	49,148,590	9.58
Sushilkumar Kalyanji Parekh	45,969,560	8.97
Genesis Indian Investment Co. Limited - General Sub fund	39,863,145	7.78
Devkalyan Sales Private Limited	26,074,280	5.09

d. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years, immediately preceding the reporting date:

PARTICULARS	Number of Shares
Equity Shares
Allotted as fully paid bonus shares (in 2009-10)	253,067,306
Allotted on Conversion of FCCB (in 2011-12 and 2012-13)	6,507,718

* In 2008-09, Company had transferred 6,000 Equity Shares from Bonus Shares Issue Suspense Account to Equity Share Capital Account on account of settlement of dispute for title of shares. However, no new shares were allotted.

e. The Company had issued on 6th December, 2007, 400 Foreign Currency Convertible Bonds (FCCB) of US$100,000 each, which were convertible into Equity shares at any time upto 1st December, 2012. The due date for redemption of FCCBs was 7th December, 2012. As on 7th December, 2012, the balance outstanding FCCBs aggregating 205 Bonds were redeemed by the Company.

f. Equity Shares reserved for issuance under Employee Stock Option Scheme, 2012:

PARTICULARS	Number of Shares
Equity Shares of Re.1 each	300,000

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	512.640	512.640	507.650
(b) Reserves & Surplus	19882.510	16811.730	13208.990
(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)	20395.150	17324.370	13716.640
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	922.970
(b) Deferred tax liabilities (Net)	508.270	483.620	454.270
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	196.650	142.870	101.380
Total Non-current Liabilities (3)	704.920	626.490	1478.620
(4) Current Liabilities
(a) Short term borrowings	76.840	0.000	0.000
(b) Trade payables	3011.380	2071.370	1702.280
(c) Other current liabilities	2859.590	3727.730	4928.640
(d) Short-term provisions	1844.230	2035.720	1179.460
Total Current Liabilities (4)	7792.040	7834.820	7810.380
TOTAL	28892.110	25785.680	23005.640
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5351.310	5120.010	4717.130
(ii) Intangible Assets	761.670	217.130	242.090
(iii) Capital work-in-progress	4310.890	4087.090	3713.350
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3396.620	2773.220	2418.830
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	641.050	750.840	249.510
(e) Other Non-current assets	59.290	47.540	1.370
Total Non-Current Assets	14520.830	12995.830	11342.280
(2) Current assets
(a) Current investments	2341.340	2696.180	909.160
(b) Inventories	5082.010	4511.640	3963.040
(c) Trade receivables	4536.000	3667.630	3261.180
(d) Cash and cash equivalents	1451.810	1368.240	2577.190
(e) Short-term loans and advances	851.500	477.390	859.870
(f) Other current assets	108.620	68.770	92.920
Total Current Assets	14371.280	12789.850	11663.360
TOTAL	28892.110	25785.680	23005.640

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	38782.400	33316.910	28163.200
		Other Income	429.420	658.970	427.670
		TOTAL	39211.820	33975.880	28590.870
Less	EXPENSES
		Cost of Materials Consumed	20022.840	16966.670	14637.410
		Purchases of Stock-in-Trade	1800.490	1561.210	1316.060
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	-422.630	-321.820	-279.160
		Employees benefits expense	3582.580	3010.290	2611.560
		Other expenses	7070.420	6010.700	5013.240
		TOTAL	32053.700	27227.050	23299.110
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		7158.120	6748.830	5291.760
Less	FINANCIAL EXPENSES		96.900	80.170	245.040
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7061.220	6668.660	5046.720
Less/ Add	DEPRECIATION/ AMORTISATION		686.250	532.410	479.260
	EXCEPTIONAL ITEM		64.960	(59.440)	126.290
	PROFIT BEFORE TAX		6310.010	6195.690	4441.170
Less	TAX		1623.930	1588.090	1096.110
	PROFIT AFTER TAX		4686.080	4607.600	3345.060
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	3954.420	3201.730	2643.160
		Royalty and Technical Know How	10.070	2.600	0.000
		Others	9.450	2.880	18.610
	TOTAL EARNINGS		3973.940	3207.210	2661.770
	IMPORTS
		Raw Materials and Packing Materials	4792.540	3999.210	3519.650
		Capital Goods	55.060	103.500	119.340
		Traded Goods	622.240	665.740	639.570
		Stores & Spares	5.390	0.210	0.000
	TOTAL IMPORTS		5475.230	4768.660	4278.560
	Earnings Per Share (Rs.)
	Basic		9.14	9.04	6.59
	Diluted		9.14	9.04	6.43

QUARTERLY RESULTS

PARTICULARS	30.06.2014	30.09.2014
Type	1^st Quarter	2^nd Quarter
Net Sales	12128.900	11354.700
Total Expenditure	9798.100	9329.700
PBIDT (Excl OI)	2330.800	2025.000
Other Income	177.100	135.000
Operating Profit	2507.900	2160.000
Interest	12.500	14.400
Exceptional Items	(49.100)	0.000
PBDT	2446.300	2145.600
Depreciation	227.800	288.400
Profit Before Tax	2218.500	1857.200
Tax	575.700	490.800
Provisions and contingencies	0.000	0.000
Profit After Tax	1642.800	1366.400
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	1642.800	1366.400

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	12.08	13.83	11.88
Operating Profit Margin (PBDIT/Sales)	(%)	18.46	20.26	18.79
Return on Total Assets (PBT/Total Assets}	(%)	29.79	32.74	26.32
Return on Investment (ROI) (PBT/Networth)		0.31	0.36	0.32
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.07
Current Ratio (Current Asset/Current Liability)		1.84	1.63	1.49

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	507.650	512.640	512.640
Reserves & Surplus	13208.990	16811.730	19882.510
Net worth	13716.640	17324.370	20395.150
Long-term borrowings	922.970	0.000	0.000
Short term borrowings	0.000	0.000	76.840
Total borrowings	922.970	0.000	76.840
Debt/Equity ratio	0.067	0.000	0.004

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	28163.200	33316.910	38782.400
		18.299	16.405

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	28163.200	33316.910	38782.400
Profit	3345.060	4607.600	4686.080
	11.88%	13.83%	12.08%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current maturities of Long-Term borrowings
Nil (600) 11.9% Redeemable Non-Convertible Debentures of 1,000,000 each #	0.000	600.000	0.000
Foreign Currency Convertible Bonds (US $ 33.3 million Zero Coupon Convertible Bonds)	0.000	0.000	1705.630
Interest free Sales Tax loan from Government of Maharashtra @	0.000	2.430	12.730
Total	0.000	602.430	1718.360

NOTES:

# 600 redeemable Non-Convertible Debentures were secured by way of mortgage and by first pari passu charge on the immovable property in Gujarat and all movable properties of the Company. These debentures have been redeemed at par on 5th December, 2013.

@ Sales Tax loan was interest free and payable in 16 yearly installments, starting from 30th April, 2007. The same has been prepaid.

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	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	Yes
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	No
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

LITIGATION DETAILS

CASE DETAILS

BENCH:-BOMBAY

Presentation Date: 11.02.2014

Lodging No.:-

APPL/69/2014

Filing Date:-

11.02.2014

Main Matter

Lodging No.:

NMSL/1717/2013

Petitioner:-	JUBILANT AGRI AND CONSUMER PRODUCTS	Respondent:-	PIDILITE INDUSTRIES LIMITED
Petn. Adv.:-	MAG LEGAL (I1295)
District:-	Outside Maharashtra

Bench:-	DIVISION
Status:-	Admitted(Unready)	Category:-	APPEAL(INTERLOCUTORY APPLN.-NMA)

Last Date:-

18.06.2014

Stage:-

APPEALS FOR ADMISSION – FRESH [ORIGINAL SIDE MATTERS]

Last Coram:-

HON'BLE THE CHIEF JUSTICE HON'BLE SHRI JUSTICE M.S. SONAK

Act :-

Trade & Trade Merchandise Marks Act

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90218500	06/08/2008 *	1,519,900,000.00	INDIAN OVERSEAS BANK	BAKHTAWAR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A44106425
2	90242415	09/03/2005 *	954,900,000.00	INDIAN OVERSAES BANK	BHAKTAWAR, GROUND FLOOR; NARIMAN POINT, MUMBAI, MAHARASHTRA, INDIA	-
3	90216221	05/12/1995	50,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWERS, CUFFE PARADE; COLABA, BOMBAY, MAHARASHTRA - 400005, INDIA	-
4	90362717	05/09/1984	150,000.00	THE MAHARASHTRA STATE FINANCIAL CORPORATION	A.K. NAYAK MARG, FORT, MUMBAI, MAHARASHTRA, INDIA	-

* Date of charge modification

CORPORATE INFORMATION

Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and industrial specialty chemicals in India. The equity shares of the Company are listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

FINANCIAL PERFORMANCE

The Operating Profit for the year at Rs.7209.000 millions increased by 6.8% and Net Profit at Rs.4686.000 millions increased by 1.7%. Income tax for the current year at Rs.1599.000 millions is higher by 2.6% due to increase in the surcharge on income tax from 5% to 10%.

GDP growth and in particular industrial growth in India declined over last year and was the lowest in comparison to the growth in the last 5 years. This affected sales of Company’s products.

Sales of Consumer and Bazaar products grew by 16.3%, below the historical trends.

Sales of Industrial products grew by 15.2%, on account of higher exports, faster than the 10.6% growth recorded in the previous year.

The Indian Rupee was at Rs.60.05 to a US $ as on 31st March, 2014 as compared to Rs.54.28 to a US $ as on 31st March, 2013. However the exchange rate was very volatile with the touching 68.75 to a dollar during the year. This impacted margins especially in the fourth quarter.

SYNTHETIC ELASTOMER PROJECT

The Company has decided to explore induction of a strategic partner in the project. While discussions were held with several interested parties, the Company is yet to finalize a partner for the project.

The total amount spent on the project during the year is Rs.70.600 millions and the total investment in the project stands at Rs.3696.500 millions.

INDUSTRY STRUCTURE AND DEVELOPMENT

There is no material change in the industry structure as was reported in the last year.

The Company operates under two major business segments i.e. Branded Consumer and Bazaar Products and Industrial Products.

Products such as Adhesives, Sealants, Art Materials, Construction and Paint Chemicals are covered under branded Consumer and Bazaar Products segment. These products are widely used by carpenters, painters, plumbers, mechanics, households, students, offices, etc.

Industrial Products segment covers products such as Industrial Adhesives, Synthetic Resins, Organic Pigments, Pigment Preparations, Surfactants, etc. and caters to various industries like packaging, textiles, paints, printing inks, paper, leather, etc.

In both the above business segments, there are a few medium to large companies with national presence and a large number of small size companies that are active regionally. There is growing presence of multinationals in many of the product categories in which the Company operates. The share of imports is less than 10% of domestic volumes in most of the product categories.

The “Other” segment largely consists of the VAM manufacturing unit.

CURRENT YEAR OUTLOOK

The demand for the Company’s products is linked to the market demand both in India and worldwide. The current year’s outlook is uncertain. However, economic scenario is likely to improve towards the year end.

Prices of VAM, a key input for the Company’s products have sharply increased in the last few months owing to demand supply imbalance in the global market.

The Company is taking suitable steps for price increases to offset the cost increase but due to a time lag between increase in costs and pricing action, margins could be impacted in the short term.

The Company’s major subsidiaries are in USA, Brazil, Thailand, Egypt and Bangladesh.

The overseas subsidiaries in aggregate are expected to show improved performance. However, the economic environment in Brazil and Egypt is uncertain and may have an adverse impact on the performance of subsidiaries in these countries.

MANAGEMENT DISCUSSION AND ANALYSIS

STANDALONE FINANCIALS

Net sales of the Company grew by 16.4%, lower than the growth in the previous year and below the last 5 year CAGR of 18.9%.

Sales of Consumer and Bazaar products grew by 16.3% while growth in Industrial Products was 15.2%. Growth of Industrial Products improved due to higher exports which grew by 22.6%

Margins were impacted in the second half of the year owing to depreciation in the Rupee and higher costs of key raw materials such as VAM. Actions are on hand to mitigate these cost increases through commensurate price increases.

Expenses for brand building and capability building in select functions were stepped up resulting in Advertising and Sales promotion as well as manpower costs increasing faster than the sales growth, thereby impacting profitability.

Consequently “EBIDTA” (earnings before interest, taxes, exceptional items, foreign exchange differences) excluding non-operating income grew by 11.2%.

In the previous year, non-operating income included one-off gains from the sale of assets and sale of catalyst. In the absence of such one-off gains this year, non-operating income declined by 35% resulting in growth in EBIDTA, including non-operating income, by 6.8%

During the year, the Company offered voluntary retirement to its workmen in its units in Panvel, Kamothe and Taloja for which a charge of Rs.65 million was taken.

In the previous year, due to conversion of Foreign Currency Convertible Bonds “FCCB”, there were write backs on account of interest and exchange gains. As a result Profit before Tax “PBT” and Profit after Tax “PAT” are not strictly comparable with the previous year.

PBT increased by 1.8% whereas PAT grew by 1.7%.

PERFORMANCE BY INDUSTRY SEGMENT

CONSUMER AND BAZAAR PRODUCTS

Branded Consumer and Bazaar Products Segment contributed 81% of the total net sales of the Company and grew by 16.3%.

Net sales of branded Adhesives and Sealants grew by 14.6% and contributed 50% of the total sales of the Company. Construction and Paint Chemicals grew by 12.8% and Art Materials and other products grew by 32.9%.

Consumer and Bazaar Product sales have grown at a CAGR of 19% over the last 5 years.

Profit before interest and tax for the Consumer and Bazaar segment increased by 10.7%.

INDUSTRIAL PRODUCTS

Industrial Products contributed 19% of the total sales of the Company and grew by 15.2%.

Profit before interest and tax for the segment was at the same level as last year.

Others

This segment largely consists of the Vinyl Acetate Monomer (VAM) manufacturing unit.

The Company continues to import rather than operate the VAM plant, as the import price of VAM continues to be more favourable.

The speciality acetates manufactured by the Company have found good market acceptance. The Company is working to expand the range of speciality acetates and the manufacturing facility is being modified to make the expanded range of products.

AWARDS

Dr. Fixit Extensa was awarded the Silver Winner by ACETECH Design Wall for the brand’s consistent commitment to excellence and extraordinary innovation.

The Brand Trust Report India Study 2013 ranked Fevicol 1st in Consumer Products Adhesives in India, followed by Fevikwik and Fevistik in 2nd and 3rd place.

Fevicol was also ranked as India’s 62nd Most Trusted Brand in 2013, in Brand Equity’s Most Trusted brands survey. Fevicol is also the 4th Most Trusted Brand in the Household Care Category.

Fevicol was ranked 2nd in the Buzziest Brand 2014, an annual poll conducted by India’s largest marketing and advertising portal afaqs.com.

The Holdtite Stall won 3rd prize for Best Stall Design at PlumbexIndia, the country’s only international trade show for plumbing and other allied products, organized in Mumbai.

Fevikwik.in website won a Bronze for the Best Digital Brand Website in the Abby Awards 2013.

Fevicol won the Silver EMVIE in the Best Ambient Media category for an innovative ‘free store’ activation at a city mall in Mumbai wherein 87 wooden items of all shapes and sizes were on display. Visitors were offered the opportunity to pull off any of these items and walk away with it. However, none of the wooden items could be removed, thereby reinforcing Fevicol as the ultimate and most reliable glue.

The creative campaigns of Fevicol Marine ‘Ferry’, Fevikwik ‘Hassi Brothers’ and Fevicol ‘Free Store’ activation won an ENVIE award each.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2014

[RS. IN MILLIONS]

PARTICULARS	Quarter Ended		Half Year Ended
	30.09.2014 (Unaudited)	30.06.2014 (Unaudited)	30.09.2014 (Unaudited)
Income from Operations
Net Sales/Income from Operations	11293.900	12072.400	23366.300
Other Operating Income	60.800	56.500	117.300
Total Income from operations (net)	11354.700	12128.900	23483.600
Expenses
(a) Cost of materials consumed	5919.500	5991.900	11911.400
(b) Purchase of stock in trade	412.700	401.600	814.300
(c) Changes in inventories of finished goods, work in progress and stock in trade	74.600	412.100	486.700
(d) Employee benefit expenses	1045.300	1037.000	2082.300
(e) Depreciation and amortization expenses	288.400	227.800	516.200
(f) Other Expenses	1877.200	1955.500	3832.700
Total Expenses	9617.700	10025.900	19643.600
Profit from Operations before Other Income, Finance costs and Exceptional item	1737.000	2103.000	3840.000
Other Income	135.000	173.800	308.800
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	1872.000	2276.800	4148.800
Finance costs	14.400	12.500	26.900
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	1857.600	2264.300	4121.900
Exceptional item	--	49.100	49.100
Profit/ Loss from Ordinary Activities before Foreign Exchange Difference Expense/ [Income]	1857.600	2215.200	4072.800
Foreign Exchange Difference Expense/ [Income]	0.400	(3.300)	(2.900)
Profit/ Loss from Ordinary Activities before tax	1857.200	2218.500	4075.700
Tax Expenses	490.800	575.700	1066.500
Net Profit/ Loss from Ordinary Activities after tax	1366.400	1642.800	3009.200
Extraordinary Items	--	--	--
Net Profit for the period	1366.400	1642.800	3009.200
Paid- up Equity Share Capital (Face value of the share – Re. 1/-)	512.600	512.600	512.600
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	--	--	--
Earnings per share (before and after extraordinary items) (of Re. 1/- each)
Basic	2.67	3.20	5.87
Diluted	2.67	3.20	5.87
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	153768530	153468530	153768530
Percentage of Shareholding	30.00	29.94	30.00
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	--	--	--
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
Non - encumbered
- Number of Shares	358873800	359173800	358873800
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100	100	100
- Percentage of Shares (as a % of the total share capital of the company)	70.00	70.06	70.00

	PARTICULARS	3 months ended 30.09.2014
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	4
	Received during the quarter	4
	Disposed of during the quarter	8
	Remaining unresolved at the end of the quarter	0

SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(RS. IN MILLIONS)

PARTICULARS	Quarter Ended		Half Year Ended
	30.09.2014 (Unaudited)	30.06.2014 (Unaudited)	30.09.2014 (Unaudited)
1. Segment Revenue
a. Consumer and Bazaar Products	9134.700	10169.000	19303.700
b. Industrial Products	2327.100	2168.800	4495.900
c. Others	119.100	111.000	230.100
Total	11580.900	12448.800	24029.700
Less: Inter – segment revenue	287.000	376.400	663.400
Net Sales/ Income from operations	11293.900	12072.400	23366.300
2. Segment Results
a. Consumer and Bazaar Products	1997.100	2412.900	4410.000
b. Industrial Products	267.100	160.900	428.000
c. Others	(11.900)	(32.800)	(44.700)
Total	2252.300	2541.000	4793.300
Less: Finance Costs	14.400	12.500	26.900
Other un-allocable expenditure - net off un-allocable income	380.700	310.000	690.700
Total Profit before Tax	1857.200	2218.500	4075.700
3. Capital Employed
a. Consumer and Bazaar Products	9368.600	6189.500	9368.600
b. Industrial Products	2512.400	2364.500	2512.400
c. Others	368.600	308.000	368.600
d. Unallocated	11024.300	13217.000	11024.300
Total Capital Employed	23273.900	22079.000	23273.900

STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS AT 30.09.2014

(RS. IN MILLIONS)

PARTICULARS		30.09.2014
A. EQUITY AND LIABILITIES		Unaudited
1. Shareholders’ Funds
a] Share Capital		512.600
b] Reserves and Surplus		22761.300
Sub-total – Shareholders’ funds		23273.900
2. Non-current Liabilities
a] Long term Borrowings		0.000
b] Deferred Tax Liabilities		469.300
c] Other current liabilities		0.000
d] Long term provisions		196.800
Sub-total - Non-current Liabilities		666.100
3. Current Liabilities
a] Short term Borrowings		1204.300
b] Trade Payables		3198.100
c] Other Current Liabilities		3522.900
d] Short Term Provision		1213.300
Sub-total - Current Liabilities		9138.600
TOTAL - EQUITY AND LIABILITIES		33078.600
B ASSETS
1. Non-current assets
a] Fixed assets		12741.800
b] Non-current investment		3403.800
c] long Term loans and Advances		1494.900
d] Other non-current assets		64.400
Sub-total – Non- current assets		17704.900
2. CURRENT ASSETS
	Current Investments	1935.700
	Inventories	4946.700
	Trade Receivables	6278.800
	Cash & Bank Balances	1245.800
	Short Term loans and advances	893.300
	Other Current Assets	73.400
Sub-total – Current Assets		15373.700
TOTAL - ASSETS		33078.600

NOTES:

1) The above results have been reviewed by the Audit Committee on 3rd November, 2014 and approved by the Board of Directors at their meeting held on 4th November, 2014.

2) The Statutory Auditors have carried out a "Limited Review" of the standalone financial results for the quarter and half year ended 30^th September, 2014

3) The Company has opted to publish Standalone as well as consolidated financial statements. The Consolidated financial results prepared as per Accounting Standard (AS-21) and Accounting Standard (AS-23) comprise the results of Pidilite Industries Limited (Holding Company), 19 subsidiary companies, two partnership firms and one associate Company.

4) Unallocated Capital Employed as at 30th September, 2014 includes, a) Capital Work in Progress of Rs. 3704.200 Millions (30th September, 2013 Rs. 3659.500 Millions) of Synthetic Elastomer Project, b) Investments in units of mutual funds/ term deposit with banks Rs.2737.400 Millions (30^th September, 2013 Rs. 3239.600 Millions).

5) As per the requirement of the provisions of Schedule II of the Companies Act, 2013 (the "Act"), the Management has decided to adopt the useful lives as suggested in Part C of Schedule II of the Act with effect from 1st April, 2014 for all its fixed assets. Accordingly, depreciation for the quarter is higher by Rs.102.900 Millions and for the period ended 30th September, 2014 is higher by Rs. 149.200 Millions.

6) During the quarter, management reassessed that the economic benefits derived from goodwill will be for atleast 10 years and accordingly has revised the amortisation of goodwill from 5 years to 10 years. Due to the revision, depreciation for the quarter is lower by Rs. 2.500 Millions and profit before tax is higher by Rs. 2.500 Millions; and depreciation for six months is lower by Rs. 3.300 Millions and profit before tax is higher by Rs. 3.300 Millions.

7) Exceptional item in standalone and consolidated results for the period ended 30th September, 2014 relates to payment made to employees towards Voluntary Retirement Scheme.

8) On 22nd September, 2014, the Company acquired, on a slump sale basis, the adhesive business of Bluecoat Private Limited. The above results include the financial information of the acquired business.

9) Previous period figures are regrouped wherever necessary.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
A) Contingent liabilities not provided for:
1 Claims against the Company not acknowledged as debts comprise of:
a) Income Tax demand against the Company not provided for and relating to issues of deduction and allowances in respect of which the Company is in appeal	43.570	36.940
b) Excise Duty claims disputed by the Company relating to issues of classifications	5.570	2.640
c) Sales Tax claims disputed by the Company relating to issues of declaration forms and classifications	238.63	359.950
d) Other Matters (relating to disputed electricity duty, Gram Panchayat Tax, open access charges, etc.)	25.590	5.260
2 a) Guarantees given by Banks in favour of Government and others	221.740	278.520
b) Guarantees given by Company	751.260	1004.210

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Vehicles

· Furniture

· Office Equipments

Intangible Assets

· Goodwill

· Trademarks

· Computer Software

· Copyrights

· Technical Knowhow Fees

· Non-Compete Fees

PRESS RELEASE

PIDILITE ACQUIRES BLUE COATS ADHESIVE BIZ FOR RS 2635.700 MILLIONS

Pidilite has acquired the adhesive business of Ahmedabad-based Blue Coat, which is engaged in manufacturing and selling wide range of adhesives and textile chemicals.

Pidilite Industries today said it has acquired the adhesive business of Blue Coat for Rs 2635.700 Millions.

"Pidilite has acquired the adhesive business of Ahmedabad-based Blue Coat, which is engaged in manufacturing and selling wide range of adhesives and textile chemicals, on a slump sale basis for a cash consideration of Rs 2635.700 Millions," the company said in a statement.

Blue Coat, which has a manufacturing plant in Baddi in Himachal Pradesh, has brands marketed including Bluecoat Plus, Bluecoat Marine, Bluecoat D3, Bluecoat Aqua, Bluecoat Dual, Bluegrip 5000, Bluecoat A1, among others.

"Pidilite Industries will continue to support and grow these brands," it said.

Pidilite Ind stock price

On January 13, 2015, Pidilite Industries closed at Rs 543.00, up Rs 15.80, or 3.00 percent. The 52-week high of the share was Rs 569.30 and the 52-week low was Rs 268.95.

The company's trailing 12-month (TTM) EPS was at Rs 9.51 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 57.1. The latest book value of the company is Rs 39.78 per share. At current value, the price-to-book value of the company is 13.65.

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. 62.10
UK Pound	1	Rs. 94.10
Euro	1	Rs. 73.42

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.