MIRA INFORM REPORT

Report No. :	333015
Report Date :	23.07.2015

IDENTIFICATION DETAILS

Name :	NIPPON PAINT (INDIA) PRIVATE LIMITED (w.e.f.30.05.2006)
Formerly known as :	NIPSEA PAINTS AND CHEMICALS PRIVATE LIMITED
Registered Office :	Plot No. K-8(1), Phase-II, Sipcot Industrial Park, Mamabakkam Village, Sunguvarchatram, Kancheepuram - 602106, Tamilnadu
Tel. No.:	91-44-42982212/ 37175555
Country :	India
Financials (as on) :	31.12.2014
Date of Incorporation :	19.01.2006
Com. Reg. No.:	18-069356
Capital Investment / Paid-up Capital :	Rs. 5628.000 Million
CIN No.: [Company Identification No.]	U74999TN2006PTC069356
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCN2352F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Distribution of Paints.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 10500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company possesses moderate operational performance and it has incurred huge losses from its operational activities. Rating further constrained on account of company’s moderate financial risk profile marked by negative reserves and leverage balance sheet of the company. However, trade relations are reported as fair. Payments are reported to be slow but correct. In view of operational losses, the company can be considered for business dealings with some caution.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2013.

INFORMATION DECLINED BY

Name :	Mr. Murthy
Designation :	Accountant
Contact No.:	91-44-42982222
Date :	22.07.2015

LOCATIONS

Registered Office/ Factory :	Plot No. K-8(1), Phase-II, Sipcot Industrial Park, Mamabakkam Village, Sunguvarchatram, Kancheepuram - 602106, Tamilnadu, India
Tel. No.:	91-44-42982212/ 37175555
Fax No.:	91-44-37175556
E-Mail :	finance@nipponpaint.co.in tu@nipponpaint.co.in
Website :	http://www.nipponpaint.co.in
Corporate Office :	K.R.M. Center, 9th Floor, No 2, Harrington Road, Chetpet, Chennai – 600031, Tamilnadu, India
Tel. No.:	91-44-42982222
Fax No.:	91-44-42982200
Branch Offices :	Located at: · Secunderabad · Vijayawada · Visakhapatnam · Cuddapah · Raipur · Ahmedabad · Kumbhariya · Ambala City · Palwal · Faridabad · Bangalore · Hubli · Salcete, Goa · Ernakulam · Calicut · Thrissur · Chennai · Trichy · Madurai · Coimbatore · Tirunelveli · Indore · Pune · Maharashtra · Nagpur · Mumbai · Nashik · New Delhi  · Jalandhar · Ludhiana · Jaipur · Jodhpur · Ghaziabad · Lucknow

DIRECTORS

AS ON 05.05.2015

Name :	Tetsuro Fujita
Designation :	Managing director
Address :	22, Newton Road, #23-09, Singapore 307990
Date of Birth/Age :	25.09.1958
Date of Appointment :	25.05.2010
DIN No.:	03149077
Name :	Goh Hup Jin
Designation :	Director
Address :	45, Leedon Road, Singapore 267856
Date of Birth/Age :	06.04.1953
Date of Appointment :	24.01.2006
DIN No.:	00260523
Name :	Wee Siew Kim
Designation :	Director
Address :	6, John Road, Singapore 298865
Date of Birth/Age :	19.08.1960
Date of Appointment :	29.03.2010
DIN No.:	03040686
Name :	Yip Wai Meng
Designation :	Director
Address :	364/2, 2^nd Floor, Kannu Arcade, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	27.05.1951
Date of Appointment :	24.01.2006
PAN No.:	AMVPM6028K
DIN No.:	00020531
Name :	Kang Woei Shin
Designation :	Director
Address :	Flat No. 4-A, Newryampreeti, Newdoor, No.30, Kilpaukgarden, Chennai – 600010, Tamilnadu, India
Date of Birth/Age :	28.09.1978
Date of Appointment :	03.10.2007
PAN No.:	AQIPK9746K
DIN No.:	01831886
Name :	Masaru Sumida
Designation :	Director
Address :	6-26-2903, Mukogawa-Cho, Takarazuka, Hyogo Japan 661003
Date of Birth/Age :	24.09.1956
Date of Appointment :	25.04.2011
DIN No.:	03532825
Name :	Chyang Wang
Designation :	Director
Address :	26, Lorong Pisano Udang, Lorong Pisang, Singapore 597712
Date of Birth/Age :	05.06.1952
Date of Appointment :	04.09.2013
DIN No.:	06621958
Name :	Mitsuo Yamada
Designation :	Director
Address :	19-13, Kashikiriyama, Suita City, Osaka, Japan 556011
Date of Birth/Age :	11.01.1956
Date of Appointment :	04.09.2013
DIN No.:	06673866

KEY EXECUTIVES

Name :	Mr. Murthy
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 05.05.2015

Names of Shareholders	No. of Shares	Percentage of Holding
Nipsea Holdings International Limited, Hong Kong	281400000	50.00
Nippon Paint Holdings Co. Limited, Japan (Formerly Nippon Paint Co. Limited)	281400000	50.00
Total	562800000	100.00

AS ON 05.05.2015

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Distribution of Paints.

Products :

ITC Code No.	Product Descriptions
32089029	Paints

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Not Divulged

Countries :

Not Divulged

Imports :

Products :

Not Divulged

Countries :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

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 :

Not Divulged

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

· Standard Chartered Bank, Chennai

· Woori Bank, Chennai

· Yes Bank Limited, Chennai

· State Bank of India, Chennai

Facilities :

--

Banking Relations :	--
Auditors :
Name :	Francis Charles and Associates Chartered Accountants
Address :	25/11A, 1st Street, Bunder Garden, Perambur, Chennai – 600011, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AABFF6369A
Memberships :	--
Collaborators :	--
Subsidiary Company :	PCTS Specialty Chemicals (India) Private Limited [U24110MH2006PTC166277]
Associate Companies :	· Nipsea Holdings International Limited, Hong Kong · Nippon Paint Holdings Co Limited (Formerly Nippon Paint Co Limited), Japan · Nipsea Management Company Pte Limited, Singapore · BNB Coatings India Limited, India · Guangzhou Nippon Paint Co Limited, China · Nippe Trading Co. Limited, Dubai · Nippe Trading Co. Limited, Japan · Nippe Trading Co. Limited, Singapore · Nippon Paint (H.K.) Co. Limited, Hong Kong · Nippon Paint (M) Sdn Bhd, Malaysia · Nippon Paint Company Pte Limited, Singapore · Nippon Paint (Thai) Co. Limited, Thailand · Nippon Paint and Surface Chemicals Private Limited, India · Nooro Automotive Coatings Co., Limited, South Korea · NP Auto Refinishes Co., Limited, Thailand · PCTS Speciality Chemicals Pte Limited, Singapore · PCTS Speciality Chemicals Private Limited, India

CAPITAL STRUCTURE

AS ON 31.12.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
570,000,000	Equity Shares	Rs. 10/- each	Rs. 5700.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
562,800,000	Equity Shares	Rs. 10/- each	Rs. 5628.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2014	31.12.2013	31.12.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5628.000	5628.000	5173.000
(b) Reserves & Surplus	(1939.466)	(1927.788)	(1814.554)
(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)	3688.534	3700.212	3358.446
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	23.020	18.295	13.846
Total Non-current Liabilities (3)	23.020	18.295	13.846
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	681.028	571.604	466.122
(c) Other current liabilities	333.669	318.574	71.273
(d) Short-term provisions	480.829	366.615	317.433
Total Current Liabilities (4)	1495.526	1256.793	854.828
TOTAL	5207.080	4975.300	4227.120
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1559.817	1495.107	1469.622
(ii) Intangible Assets	25.886	26.013	21.582
(iii) Capital work-in-progress	24.443	23.327	15.079
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.007	1.007	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	34.631	4.950	80.106
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1645.784	1550.404	1586.389
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	888.286	907.041	842.477
(c) Trade receivables	1004.203	834.033	748.481
(d) Cash and cash equivalents	1398.430	1427.400	846.796
(e) Short-term loans and advances	270.377	256.422	74.064
(f) Other current assets	0.000	0.000	128.913
Total Current Assets	3561.296	3424.896	2640.731
TOTAL	5207.080	4975.300	4227.120

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2014	31.12.2013	31.12.2012
	SALES
		TOTAL	5805.283	4965.440	4172.628
Less	EXPENSES
		TOTAL	5816.893	5078.592	4610.031
	PROFIT/ (LOSS) BEFORE TAX		(11.610)	(113.152)	(437.403)
Less	TAX		0.068	0.083	108.695
	PROFIT/ (LOSS) AFTER TAX		(11.678)	(113.235)	(546.098)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1927.789)	(1814.554)	(1268.456)
	BALANCE CARRIED TO THE B/S		(1939.467)	(1927.789)	(1814.554)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	244.613	383.413	105.893
	IMPORTS
		Capital Goods	10.950	6.330	0.384
		Finished Goods	106.887	66.911	208.430
	TOTAL IMPORTS		117.837	73.241	208.814
	Earnings/ (Loss) Per Share (Rs.)		(0.02)	(0.22)	(1.16)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

PARTICULARS	31.12.2014	31.12.2013	31.12.2012
Current Maturities of Long term debt	NA	0.000	0.000
Cash generated from operations	NA	NA	NA
Net Cash flow from (used in) Operations	20.412	161.020	(571.357)

KEY RATIOS

PARTICULARS		31.12.2014	31.12.2013	31.12.2012
Return on Total Assets (PBT/Total Assets}	(%)	(0.22)	(2.29)	(10.38)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.03)	(0.13)
Debt Equity Ratio (Total Liability/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.38	2.73	3.09

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	5173.000	5628.000	5628.000
Reserves & Surplus	-1814.554	-1927.788	-1939.466
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	3358.446	3700.212	3688.534
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
CURRENT MATURITIES OF LONG-TERM DEBTS	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	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	4172.628	4965.440	5805.283
		19.000	16.914

NET PROFIT MARGIN

Net Profit Margin	31.12.2012	31.12.2013	31.12.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	4172.628	4965.440	5805.283
Profit/ (Loss)	(546.098)	(113.235)	(11.678)
	(13.09%)	(2.28%)	(0.20%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CHANGE OF ADDRESS:

The Registered Office of the company has been shifted from Plot No. K-8(1), Phase-II, Sipcot Industrial Park, Mamabakkam Village, Sriperumbudur, Kancheepuram - 602105, Tamilnadu, India to the present address w.e.f.15.01.2014.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Factory equipments

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

· Computer software

· Licenses and franchise

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. 63.53
UK Pound	1	Rs. 99.19
Euro	1	Rs. 69.60

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.