MIRA INFORM REPORT

Report Date :

01.08.2011

IDENTIFICATION DETAILS

Name :	R AND R SALONS PRIVATE LIMITED
Registered Office :	55, 5^th Cross, Behind Hotel Leela Palace, Kodihalli, Bangalore-560008, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.03.2008
Com. Reg. No.:	08-045619
Capital Investment/ Paid-up Capital:	Rs. 0.311 Million
CIN No.: [Company Identification No.]	U93020KA2008PTC045619
Legal Form :	Private Limited Liability Company.
Line of Business :	The company is principally engaged in providing beauty parlour services and allied training to beauticians.
No. of Employees:	Approximately 250 (In Office)

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a company having moderate track. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Arvind Kumar
Designation :	Account Executive
Contact No.:	91-9964458987
Date :	21.07.2011

LOCATIONS

Registered Office :	55, 5^th Cross, Behind Hotel Leela Palace, Kodihalli, Bangalore-560008, Karnataka, India
Tel. No.:	91-80-43550053/ 43550011
Mobile No.:	91-9964458987 (Mr. Arvind)
Fax No.:	91-80-40972501
E-Mail :	arvind@ylg.co.in vinod@kwcpl.com tapan@ylg.co.in
Website :	http://www.ylgindia.com
Area :	Rented (Four Storey Building)
Branches :	They have it branches located at: · Bangalore · Pune

DIRECTORS

As on 06.08.2010

Name :	Mr. Rahul Bhalchadnra
Designation :	Director
Address :	B-1608, Oberoi Gardens, Thakur Vilasge, Kandivali-East, Mumbai-400101, Maharashtra, India
Date of Birth/Age :	04.03.1968
Date of Appointment :	14.03.2008
DIN No.:	01661207
Name :	Mr. Kanwaljit Singh
Designation :	Nominee Director
Address :	P 65, Golden Enclave, Airport Road, Bangalore-560017, Karnataka, India
Date of Birth/Age :	15.08.1963
Date of Appointment :	08.05.2008
DIN No.:	01388140
Name :	Mr. Rahul Chawdari
Designation :	Nominee Director
Address :	Bunglow No. 5, J.K. Colony, Kota-324003, Rajasthan, India
Date of Birth/Age :	19.06.1974
Date of Appointment :	08.05.2008
DIN No.:	02013700
Name :	Mr. Pradipta Kumar Mohapatra
Designation :	Director
Address :	11, ABM Avenue, Chennai-600028, Tamilnadu, India
Date of Birth/Age :	01.02.1950
Date of Appointment :	01.10.2009
Name :	Mr. Rajiv Kanachanda Bopaiah
Designation :	Director
Address :	1602 Wing-A 16^th Floor, Oberoi Gardens, Takur Village, Off West Highway, Kandivali East, Mumbai-400101, Maharashtra, India
Date of Birth/Age :	28.01.1968
Date of Appointment :	14.03.2008
Date of Ceasing:	01.11.2009
DIN No.:	02023095

KEY EXECUTIVES

Name :	Mr. Arvind Kumar
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 06.08.2010

Names of Shareholders	No. of Equity Shares
Rahul Bhalchandra	66600
Nalin Kumar	8770
Vijayanti Bhalchandra	100
Rajeev K Bopaiah	33300
Total	108770
Names of Shareholders	No. of Preference Shares
Helion Ventures Partners India LIC, Mauritius	210530
Total	210530

As on 23.08.2010

Names of Shareholders	No. of Preference Shares
Helion Venture Partner India LLC, Mauritius	31579
Total	31579

As on 19.10.2010

List of Allottees	No. of Shares Equity Allotted
Sagarika Panda	475
Total	475

As on 23.02.2011

Names of Shareholders	No. of Equity Shares
Mallika	525
Total	525

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	61.00
Other top fifty shareholders	39.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is principally engaged in providing beauty parlour services and allied training to beauticians.
Products :	Beauty Parlour Services.
Brand Names :	YLG
Imports :
Products :	Facial Cream
Countries :	China
Terms :
Purchasing :	TT

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

Approximately 250 (In Office)

Bankers :

• Axis Bank, Vijayanagar Branch
• Bank of Baroda, Personal Banking Service Branch, Indiranaga, Bangalore-560038, Karnataka, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. In Millions
Vehicles Loans from Banks	1.936	0.000
Total	1.936	0.000
Note: Secured by hypothecation of Vehicles.

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountant
Address :	Maruthi Infor Tech Centre, 11-12/1, Inner Ring Road, Koramangala, Bangalore-560071, Karnataka, India
Tel. No.:	91-80-29806000
Fax No.:	91-80-39806999
Associates/Subsidiaries :	Nische Beauty Salon Private Limited Address: 55, 5^th Cross, Behind Hotel Leela Palace, Kodihalli, Bangalore-560008, Karnataka, India Activity: It’s a Salon and Spa

CAPITAL STRUCTURE

As on 06.08.2010

Authorized Capital: Rs. 2.000 Millions

Paid up Capital: Rs. 0.380 Million

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- each	Rs. 0.500 Million
22000	0.01% Cumulative Convertible Preference Shares	Rs. 10/- each	Rs. 0.220 Million
	Total		Rs. 0.720 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 10/- each	Rs. 0.100 Million
21053	0.01% Cumulative Convertible Preference Shares	Rs. 10/- each	Rs. 0.211 Million
	Total		Rs. 0.311 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.311	0.216
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		199.791	109.884
4] (Accumulated Losses)		[121.566]	[34.015]
NETWORTH		78.536	76.085
LOAN FUNDS
1] Secured Loans		1.936	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		1.936	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		80.472	76.085
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.039	27.552
Capital work-in-progress		2.608	3.062
INVESTMENT		0.000	3.532
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.900	5.708
	Sundry Debtors	0.219	0.000
	Cash & Bank Balances	16.867	31.621
	Other Current Assets	1.985	3.851
	Loans & Advances	25.373	10.346
Total Current Assets		53.344	51.526
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.574	6.075
	Other Current Liabilities	14.945	3.325
	Provisions	1.000	0.187
Total Current Liabilities		25.519	9.587
Net Current Assets		27.825	41.939
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		80.472	76.085

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Gross Revenue from Operations	59.801	1.382
Less	TOTAL EXPENSES		NA	NA
Less	LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		[69.104]	[29.880]
Less	FINANCIAL EXPENSES		0.050	0.000
	LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		[69.154]	[29.880]
Less/ Add	DEPRECIATION/ AMORTISATION		18.397	3.973
	LOSS BEFORE TAX		[87.551]	[33.853]
Less	TAX		0.000	0.162
	LOSS AFTER TAX		[87.551]	[34.015]
	IMPORTS
		Service Consumables	1.100	2.264
		Capital Goods	3.479	2.686
	TOTAL IMPORTS		4.579	4.950
	Earnings Per Share (Rs.)		2819.41	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	[84.69]	[42.81]
Return on Investment (ROI) (PBT/Networth)		[1.11]	[0.44]
Debt Equity Ratio (Total Liability/Networth)		0.35	0.13
Current Ratio (Current Asset/Current Liability)		2.09	5.37

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND:

Subject was incorporated on 14 March 2008 as a Private Limited company under the provision of Companies Act, 1956, The company is principally engaged in providing beauty parlour services and allied training to beauticians. The financial statement are prepared fro the period from 14 March 2008 (date of incorporation) to 31 March 2009

Trade References:

• Loreal

Bankers Charges Report as per Registry

Corporate identity number of the company	U93020KA2008PTC045619
Name of the company	R AND R SALONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	55, 5^th Cross, Behind Hotel Leela Palace, Kodihalli, Bangalore-560008, Karnataka, India
This form is for	Creation of Charge
Type of charge	Movable Property Floating charge
Particular of charge holder	Bank of Baroda, Personal Banking Service Branch, Indiranaga, Bangalore-560038, Karnataka, India pbbban@bankofabroad.com
Nature of instrument creating charge	Instrument of Hypothecation of Vehicles
Date of instrument Creating the charge	30.03.2010
Amount secured by the charge	Rs. 1.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12% p.a. Terms of Repayment Repayable in 36 monthly installments of Rs. 0.033 Million commencing from Apirl 2010 Margin As per bank norms Extent and Operation of the charge The charge shall operate to the extent of the loan amount plus interest commission costs expenses and other charges thereon.
Short particulars of the property charged	First Charge by way of hypothecation of 2 Nos. Tata Winger Vehicles bearing (a) Engine No. 483DLTCS55A247006274, Chassis No. MAT460072AUA00214 and (b) Engine No. 483DLTC55C24704366, Chassis No. MAT460072AUC01399

Fixed Assets:

• Computer
• Electrial Equipments
• Furniture and Fixture
• Leasehold Improvement
• Office Equipments
• Vehicles
• Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No 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.44.16
UK Pound	1	Rs.72.10
Euro	1	Rs.63.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		16

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.