MIRA INFORM REPORT

Report Date :

20.01.2007

IDENTIFICATION DETAILS

Correct Name :	MARICO LIMITED
Registered Office :	Rang Sharda, Krishnachandra Marg, Bandra Reclamation, Bandra (West), Mumbai – 400050, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.10.1988
Com. Reg. No.:	11-49208
CIN No.: [Company Identification No.]	L15140MH1988PLC049208
Legal Form :	It is a Public Limited Liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	The company is engaged in manufacturing and selling of raw / refined oils, hair oils, processed foods.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD11000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed FMCG company having fine track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are reported as fair. Financial position of the company is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Rang Sharda, Krishnachandra Marg, Bandra Reclamation, Bandra (West), Mumbai – 400050, Maharashtra, India
Tel. No.:	91-22-66480480
Fax No.:	91-22-66490112
E-Mail :	milinvrel@maricoindia.net
Website :	http://www.maricoindia.com http://www.saffolalife.com http://www.kayaclinic.com http://www.sundari.com http://www.parachuteadvansed.com http://www.innovation4india.com
Andheri Lab :	C-10 Dalia Industrial Estate, 2nd Floor, Off. Link Road, Andheri (W), Mumbai - 400 058
Tel. No.:	91-22-55020501 / 26762344
Fax No.:	91-22-26732283
Daman Plant	Survey No. 697/7, 1-A Maharani Industrial Estate, Dabhel, Nani Daman Daman – 396210
Tel. No.:	91-260-2244102 / 103
Dehradun Plant	Khasra No. 1011/1, Camp road, Central Hope Town, Selakul, Dehradun – 2478197, Uttaranchal
Tel. No.:	91-135-2698386 / 2692727
Saswad Plant	Khallad Village Post, Taluka Purandhar, Saswad, Pune - 412301
Tel. No.:	91-952115-232138 / 223422 / 431
Fax No.:	91-952115-232026
South Region Office:	210-B, Swapnalok Complex, Sarojini Devi Road, Secunderabad – 500003
Tel. No.:	91-40-27813351 / 55260067
Western Region Office:	C-10, Dalia Industrial Estate, Modi House, Off New Link Road, Near Fun Republic Cinema Andheri (West), Mumbai – 400058
Tel No.:	91-22-26732439-40, 26732472
East Region Office:	Krishna Building, 4^th Floor, room no. 416, 224, A J C Bose Road, Kolkata – 700017
Tel No.:	91-33-22470750 / 22477629
Kalina Research and Development	Bombay College of Pharmacy 2^nd Floor, CST Road, Kalina, Santacruz (West), Mumbai – 400098
Tel No.:	91-22-26664004
Fax No.:	91-22-26661733
Goa Plant	Plot no 71 and 72/1, Khandepar, Ponda north Goa, Goa – 403406
Tel No.:	91-832-2345306 / 2344830 / 873 / 874
Kanjikode Plant	New Industrial Development Area, Kanjikode Menonpra Road, Kanjikode – 678621, Distric – Palakkad, Kerala
Tel No.:	91-491-2566363 / 25671956 / 6
Fax No.:	91-491-2567197
Dehradun Plant	B-2 plot, UPSIDC Industrial Area, Selakui, Dehradun – 248197
Calicut office	9/45, Silk Street, Calicut – 673001, kerala
Tel No.:	91-495-2365253
Fax No.:	91-495-2369738
Jalgaon Plant	E-10, MDC Area, ajanta Road, Jalgaon – 425003
Tel No.:	91-257-2210002 / 8, 2210235
Fax No.:	91-257-2210231
Pondichery Plant	Plot No SP-15, PIPDIC Electrnic Park, Mannadipet, Thirubhuvanai, Pondichery – 605107
Tel No.:	91-413-2641300 / 301
Fax No.:	91-413-2251307

DIRECTORS

Name :	Mr. Harsh Charandas Mariwala
Designation :	Chairman and Managing Director
Name :	Mr. Bipin Ratilal Shah
Designation :	Director
Name :	Mr. Nikhil Nirvan Khattau
Designation :	Director
Name :	Mr. Atul Champaklal Choksey
Designation :	Director
Name :	Mr Rajeev Bakshi
Designation :	Additional Director
Name :	Mr. Kishore Vallabhdas Mariwala
Designation :	Director

KEY EXECUTIVES

Name :	Mr Milind Sarwate
Designation :	Chief Financial Officer and Company Secretary

MAJOR SHAREHOLDERS

Category	Number of Share Holders	Number of Shares	Percentage of Share Holding
Promoters	31	38640652	66.62
Foreign Institutional Investors	23	7998758	13.79
NRIs and OCBs	200	218071	0.38
Insurance Companies, Banks and other Financial Institutions	9	2781186	4.80
Mutual Funds, including Unti Trusr of India	18	3499771	6.03
Public / Private Limited Companies	388	1126099	1.94
Resident Individuals, Trusts and In Transit	9452	3735463	6.44
Total	10121	58000000	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing and selling of raw / refined oils, hair oils, processed foods

Products :

Generic names of the three principal products of the company

Product Description	Item Code No
Coconut Oil	15131100
Sunflower Oil	15121910
Safflower Oil	15121930

Brand Names :

MARICO

PRODUCTION STATUS

Particulars	Unit	Period	Installed Capacity	Actual Production
1] Raw / refined oils	Matrix Tonnes	31.03.2006 31.03.2005	150000 150000	75582.31 75735.44
2] Hair oils	K L	31.03.2006 31.03.2005	13200 13200	7572.25 1480.40
3] Others (including Processed foods and by – products)		31.03.2006 31.03.2005	---	---
4] Service income -commision		31.03.2006 31.03.2005	---	---

GENERAL INFORMATION

No. of Employees :	Around 850
Bankers :	+ State Bank of Saurashtra, Mumbai + Citibank N. A., Mumbai + Standard Chartered Grindlays Bank Limited, Mumbai + ICICI Bank Limited, Mumbai + HDFC Bank Limited, Mumbai

Auditors :	R S M and Company Chartered Accountants
Associates/Subsidiaries :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
6,00,00,000	Equity Shares	Rs 10/- each	Rs 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,80,00,000	Equity Shares	Rs 10/- each	Rs 580.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital	580.000	580.000
2] Share Application Money	0.000	0.000
3] Reserves & Surplus	2193.600	1605.500
4] (Accumulated Losses)	0.000	0.000
NETWORTH	2773.600	2185.500
LOAN FUNDS
1] Secured Loans	2032.500	32.500
2] Unsecured Loans	202.600	607.800
TOTAL BORROWING	2235.100	640.300
DEFERRED TAX LIABILITIES	82.800	60.500
TOTAL	5091.500	2886.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	2895.500	891.100
Capital work-in-progress	189.700	116.500
INVESTMENT	363.900	290.900
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
Inventories	1195.900	1124.700
Sundry Debtors	495.300	466.900
Cash & Bank Balances	280.800	178.100
Other Current Assets	0.000	0.000
Loans & Advances	1283.100	907.100
Total Current Assets	3255.100	2676.800
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	1417.500	937.900
Provisions	195.200	150.600
Total Current Liabilities	1612.700	1088.500
Net Current Assets	1642.400	1588.300
MISCELLANEOUS EXPENSES	0.000	0.000
TOTAL	5091.500	2886.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005
Sales Turnover [including other income]	10486.200	9479.600
Profit/(Loss) Before Tax	1069.700	775.900
Provision for Taxation	100.900	38.000
Profit/(Loss) After Tax	968.600	737.900
Export Value	676.400	541.300
Import Value	127.600	431.100
Total Expenditure	9396.500	8703.700

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006 1^st Qtr.	30.09.2006 2^nd Qtr.	31.12.2006 3^rd Qtr.
Sales Turnover	340.84	341.20	353.88
Other Income	1.14	0.12	1.32
Total Income	341.98	341.32	355.20
Total Expenditure	286.96	285.51	308.33
Operating Profit	55.02	55.81	46.87
Interest	4.12	4.48	2.16
Gross Profit	50.90	51.33	44.71
Depreciation	8.66	9.17	8.92
Tax	8.86	13.07	-1.47
Reported PAT	31.30	26.70	30.70

200606 Quarter 1 --------------- Notes Expenditure Includes (Increase)/Decrease in Stock in Trade Rs 165.10 million Consumption of Raw Materials Rs 1359.90 million Packing Material Consumed Rs 270.20 million Staff Cost Rs 160.00 million Advertisement & Sales Promotion Rs 432.30 million Other Expenditure Rs 482.10 million Depreciation Indicate Depreciation & Amortisation Tax Includes Provision for Current Tax Rs 56.30 million MAT Credit (available)/ availed Rs 26.80 million Fringe Benefit Tax Rs 5.50 million Deferred Tax Rs 20.80 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 19 Complaints disposed off during the quarter 19 Complaints unresolved at the end of the quarter Nil 1. In compliance with Clause 41 of the Listing Agreement with the Stock Exchanges, a limited review of the financial results of Marico Ltd (Marico) for the quarter ended June 30, 2006 has been carried out by the Statutory Auditors of the Company. The Limited Review Report does not contain any remark which needs to be explained. 2. Marico has three business segments - Consumer Products (comprising consumer product business of Marico Ltd, Marico Bangladesh Ltd along with its wholly owned subsidiary MBL Industries Ltd and the newly formed wholly owned subsidiary Marico Middle East FZE), Skin Care (comprising Kaya Skin Care Ltd, skin care business of Marico Ltd in the Middle East and the newly formed wholly owned subsidiary Kaya Middle East FZE) and Global Ayurvedics (Sundari LLC). Segment Revenue, Results and Capital Employed figures include the respective amounts identifiable to each of the segments. Of these, the reportable segments are Consumer Products and Others (comprising Skin Care and Global Ayurvedics). Segment results are reported net of minority interests in case of Sundari LLC. 3. At its meeting held on July 25, 2006, the Board of Directors of Marico Ltd declared a first interim dividend of 13.5% (Rs 1.35 per share of Rs 10 each) on the equity capital of Rs 580 million. 4. Previous period/year figures have been regrouped / restated wherever necessary. 5. These results were taken on record by the Board of Directors of Marico Ltd in its meeting held on July 25, 2006.

200609 Quarter 2 --------------- Notes: 1. Marico has three business segments - Consumer Products (comprising consumer product business of Marico Limited, Marico Bangladesh Limited, MBL Industries Limited and Marico Middle East FZE), Skin Care (comprising Kaya Skin Care Limited, skin care business of Marico Limited in the Middle East and Kaya Middle East FZE) and Global Ayurvedics (Sundari LLC). Segment Revenue, Results and Capital Employed figures include the respective amounts identifiable to each of the segments. Of these, the reportable segments are Consumer Products and Others (comprising Skin Care and Global Ayurvedics). 2 The above financials include exceptional / one-time items as under: a) A credit for reversal of Provision made in 2005-06 no longer considered necessary (Q1 07 - Rs. 44 Millions, Q2 07 - Rs. 47 Millions, H1 07 - Rs. 91 Million). b) A charge for an additional provision for Income Tax (Q1 07 - Nil, Q2 07 - Rs. 45 Million, H1 07 - Rs. 45 Million). This relates to financial year 2000-01 and has been deemed necessary in view of a judicial decision, considered to have a bearing on the stand earlier taken by the company in respect of certain deductions from taxable income. c) An additional charge for Rs 21.7 Millions has been accounted in Q2 07 on account of change in assumptions of actuarial valuation of Leave Encashment & Gratuity. As a result, Profit Before Tax is higher for Q1 07 by Rs. 44 Millions, is higher for Q2 07 by Rs. 25.3 Millions and is higher for H1 07 by Rs.69.3 Millions. Profit After Tax is higher for Q1 07 by Rs. 33 Millions, is lower for Q2 07 by Rs. 27.3 Millions and is higher for H1 07 by Rs. 5.7 Millions. 3 No investor complaint was pending at the beginning of the quarter. 27 investor complaints were received and dealt with during the quarter. 2 investor complaints were pending as on September 30, 2006 which have since been resolved. 4 At its meeting held on October 18, 2006, the Board of Directors of Marico Limited declared a second interim dividend of 15% (Rs.1.50 per share of Rs. 10 each) on the equity capital of Rs. 580 Millions. The dividend shall be paid to the shareholders whose names appear in the Register of Members as on October 23, 2006. 5 Previous period / year figures have been regrouped / restated wherever necessary. 6 These results were taken on record by the Board of Directors of Marico Limited in its meeting held on October 18, 2006.

200612 Quarter 3 --------------- Notes Expenditure Includes (Increase)/Decrease in Stock in Trade Rs 165.50 million Consumption of Raw Materials Rs 1491.60 million Packing Material Consumed Rs 298.50 million Staff Cost Rs 174.20 million Advertisement & Sales Promotion Rs 433.50 million Other Expenditure Rs 520.00 million Depreciation Indicate Depreciation & Amortisation Tax Includes Provision for Current Tax Rs 17.50 million MAT Credit (available)/ availed Rs (43.20) million Fringe Benefit Tax Rs 11.00 million Deferred Tax Rs 65.60 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter 02 Complaints Received during the quarter 15 Complaints disposed off during the quarter 17 Complaints unresolved at the end of the quarter 17 1. The unaudited consolidated financials comprise the financial results of Marico Ltd, Kaya Skin Care Ltd, Marico Middle East FZE, Marico Bangladesh Ltd, MBL Industries Ltd Sundari LLC & MEL, Consumer Care SAE for the period ended December 31, 2006, Pyramid for modern Industries a subsidiary firm was acquired by MEL Consumer Care SAE on December 28, 2006 and does not have any profit and loss statement for the nine months ended December 31, 2006. All the aforesaid entities are collectively called 'Marico'. 2. Marico has three business segments - Consumer Products (comprising consumer product business of Marico Ltd, Marico Bangladesh Ltd, MBL Industries Ltd and Marico Middle East FZE, MEL Consumer Care SAE and Pyramid for Modern Industries Ltd), Skin Care (comprising Kaya Skin Care Ltd, skin care business of Marico Ltd in the Middle East and Kaya Middle East FZE) and Global Ayurvedics (Sundari LLC). Segment Revenue, Results and Capital Employed figures include the respective amounts identifiable to each of the segments. Of these, the reportable segments are Consumer Products and Others (comprising Skin Care and Global Ayurvedics). 3. Other Expenditure includes loss of Rs 42.00 million in Q3 07 (Rs 1.00 million in Q3 06) and Rs 39.00 million in YTD Q3 07 (Rs 2.00 million in YTD Q3 06) due to foreign exchange revaluation of loans given and taken. 4. The above financial include exceptional / one-time items as under: a. A credit for reversal of Provision made in earlier year no longer required(H1 07 - Rs 91 million, Q3 07 - Rs 49 million, and YTD Q3 07 - Rs 140 million}. b. An Additional Charge of Rs 21.70 million has been accounted in H1 07 on account of change in assumptions of actuarial valuation of Leave Encashment & Gratuity. C. A charge for an additional provision for Income tax (H1 07 - Rs 45 million). This relates to financial year 2000-01 and has been deemed necessary in view of a judicial decision, considered to have a bearing on the stand earlier taken by the Company in respect of certain deductions from taxable income. As a Result, Profit Before Tax is higher for H1 07 by Rs 69 million, Q3 07 by Rs 49 million and YTD Q3 07 by Rs 118 million. Profit after Tax is higher for H1 07 by Rs 6 million, Q3 07 by Rs 43 million and YTD Q3 07 by Rs 49 million, 5. During Q3 06 the company changed its method of accounting depreciation on Plant & Machinery (other than computer hardware and technologically advanced machinery, which are depreciated at rates higher than statutory prescribed) from Straight Line basis to Written Down value basis. As a result of this additional depreciation of Rs 140 million in respect of earlier year was charged to the profit and loss account & included under Depreciation, amortisation and impairment. 6. The Company issued preference shares of Rs 1500 million during Q3 07 and redeemed the same during the period. Pro-rata Preference dividend of Rs 16 million (inclusive of dividend distribution tax) was paid during the period on redemption. 7. At its meeting held on January 19, 2007 the Board of Directors of Marico Ltd declared a Third Interim Dividend of 17% (Rs 1.7 per share of Rs 10 each) on the enhanced equity capital of Rs 609 million. The dividend shall be paid to the shareholders whose names appear in the Register of Members as on January 24, 2007 8. Previous Period/year figures have been regrouped / restated wherever necessary. 9. These results were taken on record by the Board of Directors of Marico Ltd at its meeting held on January 19, 2007.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.58	0.18	0.05
Long Term Debt-Equity Ratio	0.40	0.00	0.00
Current Ratio	1.58	1.55	1.70
TURNOVER RATIOS
Fixed Assets	3.65	5.87	5.79
Inventory	9.02	9.14	9.29
Debtors	21.76	23.65	29.04
Interest Cover Ratio	22.71	26.69	28.56
Operating Profit Margin(%)	14.07	9.73	9.00
Profit Before Interest And Tax Margin(%)	10.90	8.51	7.70
Cash Profit Margin(%)	12.63	9.01	8.10
Adjusted Net Profit Margin(%)	9.45	7.79	6.80
Return On Capital Employed(%)	29.10	34.16	33.78
Return On Net Worth(%)	39.87	37.04	32.74

STOCK PRICES

Face Value	Rs.10/- each
High	Rs.564.00
Low	Rs.580.00

LOCAL AGENCY FURTHER INFORMATION

Bio Data

Incorporated in Oct.'88 as Marico Foods, Marico Industries acquired its present name in Oct.'89. It began commercial operations in 1990 when it took over the consumer products division of Bombay Oil Industries. In Sep.'90, it entered into an agreement with Bombay Oil for the use of Parachute and Saffola brands. Marico purchased an unit at Jalgaon, Maharashtra, belonging to Rasoi Industries. It is having plants in Goa, Pondicherry, Kanjikode, Jalgaon, Saswad, Daman and Dehradun. 

 Marico's key strength, besides its ability to brand a commodity, is its distribution network. The company's export market comprises largely the Middle East and SAARC countries. Marico is also present in Bangladesh through its wholly-owned subsidiary, Marico Bangladesh.  

 Marico has a marketing and distribution alliance with Indo Nissin Foods for Top Ramen noodles and a distribution agreement with Proctor & Gamble for distribution of some of their products in India. 

 In June 1999, the company has acquired from Procter & Gamble, the Anti-Lice Treatment business under the brand Mediker. Also, in March 2000, the company acquired from Kanmoor Foods, its facilities at Saswad for manufacture of jams, sauces and other fruit & vegetable products at a consideration of Rs 16.500 Millions. 

 During 2000-01, MIL acquired the Parachute and Saffola brands from the promoter company-- Bombay Oil Industries. MIL now owns all its nine brands, viz. Parachute, Saffola, Sweekar, Hair & Care, Revive, Sil, Oil of Malbar, Mediker and Shanti and also their extensions.  

 The company is, at present, highly dependent on its three main brands -- Parachute, Saffola and Sweekar. The growth in this category will be difficult to sustain in the longer run due to increasing competition. Hindustan Lever acquired Cococare (it already has Nihar under its fold), which will see an intensification of competition in the coconut oil category.  

 The Coconut Oil manufacturing unit at Pondicherry has commenced its commercial operations in March 2002 at a capital cost of Rs.120 million. It has also set up a manufacturing unit at Daman for manufacture of Personal Care products and the commercial operations were started in March 2002. During the last quarter of 2003 Marico has acquired a controlling equity interest in Sundari LLC,a US company owning the SUNDARI line of luxury Ayurvedic skin care products. Marico & its affiliates Adil & Associates have acquired 70.5% of the equity of Sundari LLC,the newly formed joint venture between Marico and Shantih LLC. Shantih LLC,which is owned by the founders of SUNDARI and a group of private investors,own the remaining 29.5%. 

 The company is planning to amalgamate Anandita Arnav Trading & Investment Private Ltd., Madhav Nandini Trading & Investment Private Ltd., Rajvi Rishab Trading & Investment Private Ltd and Rishabh Harsh Trading & Investment Private Ltd with itself subject to the approval of High court of Mumbai. 

 The name of the company has been changed during May 2005 from Marico Industries Ltd to Marico Ltd. 

 During 2004-05 the company has enhanced its installed capacity of Raw/Refined Oils by 25680 MT and with this expansion the total installed capacity of Raw/Refined Oils has increased to 150000 MT. Further the company has installed a new capacity of Hair Oils with a capacity of 13200 KL. During May 2004 the company has issued bonus equity shares to its shareholders in the ratio of 1:1. 

 The company has established its products and services to 24 countries across the world. The company's skin care services business has grown to 34 clinics across 11 cities in India and the UAE with 90 dermatologists and this business is done under the name Kaya. 

 The subsidiaries of the company are Marico Bangladesh Ltd, MBL Industries Ltd, Kaya Skin Care Ltd, Sundari LLC and Sundari SPA LLC. On March 22,2005 Sundari Spa LLC, a wholly owned subsidiary of Sundari LLC was dissolved. Hence Sundari Spa LLC is ceased to be a subsidiary of Sundar LLC and the Company. 

In line with international practice, the Company has been reporting consolidated results - taking into account the results of its subsidiaries. This Discussion therefore covers the financial results and other developments during April 05 - March 06 in respect of Marico Consolidated - Consumer Products [Marico Limited together with its subsidiaries - Marico Bangladesh Limited (MBL), MBL Industries Limited (MBLIL), Marico Middle East, FZE (MME)] Skin Care [Kaya Skin Care Limited (KSCL), Kaya Middle East, FZE (KME) (a subsidiary of MME}] Global Ayurvedlcs [its joint venture, Sundari LLC (Sundari)]. The consolidated entity has been, in this discussion, referred to as 'Marico' or 'Group'.

Company's R&D centre continues to be recognized by the Council for Scientific and Industrial Research (CSIR). In the future, the R&O thrust will continue to be on quality, identification of new ways to optimise costs and development of new products with focus on consumer needs.

Marico is a leading Indian Group in Consumer Products and Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods generated during 2005-06 a Turnover of about Rs.1150 Million(USD 250 Million). Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Kaya, Sundari, Aromatic Fiancee and HairCode. Marico’s brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Anti-lice Treatment, Premium Refined Edible Oils, Fabric Care etc. Marico is present in the Skin Care Services segment through Kaya Skin Clinics (47in India and the UAE), the Sundari range of Spa skin care products (in the USA & other countries) and also through a recently acquired nascent soap franchise (in India and Bangladesh).

Marico's branded products are also present in Bangladesh, other SAARC countries, the Middle East and Egypt. The Overseas Sales franchise of Marico’s Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services.

Every month, over 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas.

Marico’s focus on sustainable profitable growth is manifest through its consistent financial performance – a CAGR of 13 % in Turnover and 15% in Profits over the past 5 years- while setting a record of several consecutive quarters of year on year growth- 29 for Profits and 25 for Sales, and distributing dividends for 24 consecutive quarters.

The Marico scrip is listed on the Bombay Stock Exchange (BSE) (Code 531642) & on the National Stock Exchange (NSE) (Code “MARICO”).

Secured Loans

1] Term Loan from Bank – Rs 2000.000 Millions

(To be secured by pari passu charge on fixed assets and brands. The loan is repayable in 8 installments beginning August 1, 2007. the company however has the option to make a premature repayment of the loan at the end of 2^nd and 6^th month from the date of drawdown of the loand i.e. in April 2006 and August 2006.)

2] Working Capital finance from Banks – Rs 32.500 Millions

(Secured by hypothecation of stocks in trade and debtors)

Fixed Assets

- Tangible Assets

- Freehold Land

- Leasehold Land

- Buildings

- Plant and Machinery

- Furniture and Fittings

- Vehicles

- Intangible Assets

- Trademarks and Copyrights

- Business and Commercial rights

- Other Intangibles

- Computer

The company is in trade terms with :

+ Vividh Plastics

+ Shree Mookambika Polymers

+ Garden Polymers Private Limited

+ Plastex Containers (Goa) Private Limited

+ Servoplast

+ Goa Plast Private Limited

+ Complement Marketing Private Limited

+ Rachana Enterprise

+ Nice Pack Industries Private Limited

+ Interlables Industries Private Limited

Name of the subsidiary company	Marico Bangladesh Limited	MRL Industries Limited	Kaya Skin Care Limited	Sundari LLC	Marico Middle East FZE	Kaya Middle East FZE
Name of the holding company	Marico Industries	Marico Bangladesh Limited	Marico Limited	Marico Limited	Marico Limited	Marico Middle East FZE
Holding company’s interest	1000000 ordinary shares of Taka 10 each, fully paid up	1000000 ordinary shares of Taka 10 each, fully paid up		75500 shares of USD 18.25 each, fully paid up	1 ordinary share of AED 1000000 fully paid up	1 ordinary share of AED 150000 fully paid up
Extent of Holding	100.00%	100.00%	100.00%	75.5%	100.00%	100.00%
The financial year of the subsidiary company ended on	30.09.2005	30.09.2005	31.03.2006	31.12.22005	31.03.2006	31.03.2006
Net aggregate amount of the subsidiary company’s profits/ losses dealt with in the holding company’s accounts * For the subsidiary aforesaid financial year * For the previous financial year since it became subsidiary	Taka 4.13 Crore (Rs 29.600 Millions) Taka 4.40 Crore (Rs 31.500 Millions)	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil
Net aggregate amount of the subsidiary company’s profits/ losses not dealt with in the holding company’s accounts * For the subsidiary aforesaid financial year * For the previous financial year since it became subsidiary	Taka 11.52 Crore (Rs 82.600 Millions) Taka 11.70 Crore (Rs 83.900 Millions)	Taka 0.61 Crore (Rs 4.400 Millions) Taka 1.34 Crore (Rs 9.600 Millions)	(Rs 116.100 Millions) (Rs 120.000 Millions)	USD – 0.15 Crore (Rs 66.400 Millions) USD – 0.15 Crore (Rs 66.400 Millions)	* NA	* NA
Changes if any in the holding company’s interest in the subsidiary between the end of the financial year of the subsidiary and that of the holding company	Nil	Nil	NA	Nil	NA	NA
Material changes, if any between the end of the financial year of the subsidiary and that of the holding company	Acquisition soap brand from Aromatic Cosmetic Limited, resulting to: Asset under construction Taka 20.24 Crore (Rs 145.100 Millions) Increase in other assets Taka 5.00 Crore (Rs 35.600 Millions) Increase in intangible Taka 1.50 crore (Rs 10.800 Millions)	Nil	NA	Nil	NA	NA

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 records 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 records 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.44.21
UK Pound	1	Rs.87.48
Euro	1	Rs.57.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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