MIRA INFORM REPORT

Report Date :

16.05.2011

IDENTIFICATION DETAILS

Name :	FIABILA INDIA LIMITED (w.e.f. 26.07.2005)
Formerly Known As :	ALPA RESINS AND PAINTS LIMITED
Registered Office :	17, MIDC, Taloja, Raigad-410208, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.03.1995
Com. Reg. No.:	11-86610
Capital Investment / Paid-up Capital :	Rs.4.111 Millions
CIN No.: [Company Identification No.]	U24222MH1995PLC086610
TAN No.: [Tax Deduction & Collection Account No.]	MUMA09579D
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer of Nail Care Products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 220000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions

NOTES :

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

ECGC Country Risk Classification List – 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

LOCATIONS

Registered Office :	17, MIDC, Taloja, Raigad-410 208, Maharashtra, India
E-Mail :	yckorani@clarioncosmetics.com
Chennai Office:	3, 4^th Floor, “Gokul Arcade”, No. 2, Sardar Patel Road, Adyar, Chennai-600020, Tamilnadu, India
Tel No.:	91-44-24401004
Fax No.:	91-44-24917948
Email:	Chennai@clarioncosmetics.com
Mumbai Office:	124, “Udyogkshetra” Mulund-Goregaon Link Road, Mulund (West), Mumbai-400080, Maharashtra, India
Tel No.:	91-22-25690666
Fax No.:	91-22-25650018
Email:	mumbai@clarioncosmetics.com
Manufacturing Facilities:	Locate At: Chennai Pondicherry Mumbai Hyderabad Haridwar Umbergaon

DIRECTORS

As on 30.09.2010

Name :	Mr. Kalapathy Lakshmanan
Designation :	Director
Address :	14, Ground Floor, Beach Home Avenue, Besant Nagar, Chennai Tamilnadu – 600090, India
Date of Birth/Age :	12.05.1952
Date of Appointment :	11.06.1999
Name :	Mr. Yogesh Korani
Designation :	Managing Director
Address :	6 Madhav Kunj, Derasar Lane, Ghatkopar (East), Mumbai- 400 077, Maharashtra, India
Date of Birth/Age :	15.05.1952
Date of Appointment :	19.02.1999
Name :	Mr. Miasnik Pierre
Designation :	Chairman
Address :	8, Bidde La Tour Maub, Dorg 75007 Paris France
Date of Birth/Age :	17.09.1943
Date of Appointment :	21.05.2003
Name :	Mr. Ankur Yogesh Korani
Designation :	Director
Address :	6 Madhav Kunj, Derasar Lane, Ghatkopar (E), Mumbai-400077, Maharashtra, India
Date of Birth/Age :	20.02.1983
Date of Appointment :	04.03.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Fiabila SA, France	209667
Sanjay Bhandari	16444
Clarion Cosmetics Private Limited, India	184960
Clarion Cosmetics Private Limited, India	10
Clarion Cosmetics Private Limited, India	10
Clarion Cosmetics Private Limited, India	10
Clarion Cosmetics Private Limited, India	10
Total	411111

As on 30.09.2010

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]	51.00
Bodies corporate	45.00
Other top fifty shareholders	4.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Nail Care Products
Products :	Nail Polish Nail Enamel Nail Colour Nail Color Nail Enamel Remover Nail Color Remover Nail Polish Remover Nail Colour Remover Thixotropoic Lacquer Thixotropic Colour Colour Solution Color Solution

GENERAL INFORMATION

Suppliers :

(As on 31.03.2009)

· Alufast hitech Industries

· A A Engineering

· Anand Busines Centre

· Alfa Electricals

· B K Print Pack

· Balaji Auotmobiles

· Breeeze Chemicals

· Binal Packaging

· Cera Décor

· Galord Arts

· Gujrat Glass

· Innovative Engineers

· Jay Enterprise

· Manoj Paints

Customers :

(As on 31.03.2009)

· Aero Pharma Silvassa

· Bharat Cosmetics

· Coschem Industries

· Modi Revlon

· S H Cosmetics

· Pushpanjali Enterprises

· Pyramid Industries

· Zion Industries

· Weco Technoplast

· Sapna Herbal

· Shailen Corporation

· S H Cosmetics

· Shailen Corporation

· Lips and Tips Cosmetics

Bankers :

• Citi Bank N A, 2 Floor, Citi tower, Dr. S. S. Rao Road, Parel, Mumbai-400 012, Maharashtra, India Kotak Mahindra Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Citi Bank Vehicle Loan	0.002	0.169
Citi Bank Cash Credit Account	3.182	8.214
Kotak Mahindra Bank	1.219	0.000
Total	4.403	8.383
Unsecured Loan
Clarion Cosmetics Limited	4.400	4.400
Total	4.400	4.400

Banking Relations :	--
Auditors :
Name :	Lata Ramesh and Associates Chartered Accountants
Address :	C-601, Panchvan Complex, Lm Road, Borivali (West), Mumbai 400 103, Maharashtra, India
Tel. No.:	91-22-28937760 / 28938035

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
411111	Equity Shares	Rs.10/- each	Rs.4.111 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		4.111	4.111	4.880
2] Share Application Money		0.000	0.769	0.000
3] Reserves & Surplus		51.470	43.777	39.013
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.581	48.657	43.893
LOAN FUNDS
1] Secured Loans		4.403	8.383	8.511
2] Unsecured Loans		4.400	4.400	4.400
TOTAL BORROWING		8.803	12.783	12.911
DEFERRED TAX LIABILITIES		0.805	1.038	1.098
SHARE PREMIUM A/C		0.769	0.000	0.000
TOTAL		65.958	62.478	57.902
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41.167	42.471	29.302
Capital work-in-progress		10.161	2.167	13.170
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.278	27.801	29.495
	Sundry Debtors	17.573	14.677	15.162
	Cash & Bank Balances	1.325	0.701	0.961
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	17.359	20.612	20.922
Total Current Assets		52.535	63.791	66.540
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.655	30.229	35.138
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	15.250	15.732	15.993
Total Current Liabilities		37.905	45.961	51.131
Net Current Assets		14.630	17.830	15.409
MISCELLANEOUS EXPENSES		0.000	0.010	0.021
TOTAL		65.958	62.478	57.902

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	142.863	123.579	161.833
		Other Income	4.310	2.097	4.030
		TOTAL (A)	147.173	125.676	165.863
Less	EXPENSES
		Cost of goods sold	89.110	80.536	0.000
		Direct Expenses	22.339	15.573	133.302
		Personal Expenses	10.071	7.822	6.544
		Selling and Distribution Expenses	1.106	0.871	1.463
		Administrative Expenses	7.950	9.586	7.548
		TOTAL (B)	130.576	114.388	148.857
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.597	11.288	17.006
Less	FINANCIAL EXPENSES (D)		1.135	1.357	1.128
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.462	9.931	15.878
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.863	2.960	2.238
	PROFIT BEFORE TAX (E-F) (G)		11.599	6.971	13.640
Less	TAX (H)		4.139	2.267	4.712
	PROFIT AFTER TAX (G-H) (I)		7.460	4.704	8.928
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		43.777	39.013	30.085
	DEFERRED TAX ASSETS		0.233	0.060	0.000
	BALANCE CARRIED TO THE B/S		51.470	43.777	39.013
	IMPORTS		15.591	32.091	28.805
	Earnings Per Share (Rs.)		18.15	11.44	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.07	3.74	2.84
Net Profit Margin (PBT/Sales)	(%)	8.12	5.55	8.43
Return on Total Assets (PBT/Total Assets}	(%)	12.38	6.56	14.23
Return on Investment (ROI) (PBT/Networth)		0.21	0.14	0.31
Debt Equity Ratio (Total Liability/Networth)		0.84	1.21	1.46
Current Ratio (Current Asset/Current Liability)		1.39	1.39	1.30

LOCAL AGENCY FURTHER INFORMATION

BUSINESS:

The Company was able to achieve the targeted growth during the current year. The Directors are endeavoring to go in for better product mix. And are confident of achieving much better results in the coming years.

Bankers Charges Report as per Registry

Name of the company	ALPA RESINS AND PAINTS LIMITED
Presented By	Mr. Yogesh Korani
1) Date and description of instrument creating the change	Goods security agreement dated 23.03.2003 executed by Alpa Resins and Paints Limited (Hereinafter referred to as “the Company”) in favour of City Bank N. A. hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Goods Security Agreement for Rs.7.500 millions which is fully funded.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of Stocks and Book debts forming part of current assets both present and future. and Hypothecation of fixed assets including plant and machinery, electrical fittings, furniture and fixtures, handling equipments, weighing machines and scale, office equipments, lab equipments, vehicles, computers, washing tanks and vessels, fork lift, air conditioners etc.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend and advance to the company said facilities under said agreement and declaration by the company, inter alia. as follows: Covenant by the company to repay the facility at (2) above and pay interest and all other monies in the manner set out in the said Agreements between the Company the Lender and to comply with the terms and conditions of said Agreement. 2) The said current assets and fixed assets hypothecated to the Lender by way of first charge created in favour of the bank, as security for and be charged with the repayment of the loan with all interest , liquidated, damages, premia on prepayment or on redemption, costs, charges, and other expenses payable by the company to the lender in respect thereof. Margin 36% on stock and Debtors. 3) The company to pthe said assets in marketable and good conditionsalso insured as provided therein. 4) Power of entry , power to take charge and / or possession of, seize, re over , receive, appoint and sell, contract, dispatch for realisation or otherwise dispose of or deal with all or any part of the said assets; etc., as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citi Bank N A, 2 Floor, Citi tower, Dr. S. S. Rao Road, Parel, Mumbai-400 012, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Deed of Modification dated – 18.03.2004 Relating to enhancement of credit facilities.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 23^rd January, 2003 for securing fund based facilities of Rs.7.500 millions against hypothecation of stock and book debts and Plant and Machinery. The bank has now extended additional facilities to the company and made a Deed of modification to the extent of Rs.10.000 millions which is an increase of Rs.2.500 millions against the said stock and Book debts arid Plant and machinery hypothecated by way of First charge to the lender. Other termsand conditions will remain same as per original Goods security agreement.

Fixed Assets:

• Land
• Factory Building
• Electrical Fittings
• Plant and Machinery
• Furniture and Fixtures
• Handling Equipments
• Office Equipments
• Vehicles
• Computer
• Printing Line
• Air Conditioner

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.44.91
UK Pound	1	Rs.73.05
Euro	1	Rs.64.03

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.