MIRA INFORM REPORT

Report Date :

19.11.2011

IDENTIFICATION DETAILS

Name :	BETTER LABELS MANUFACTURING COMPANY PRIVATE LIMITED
Registered Office :	D-7, Guindy Industrial Estate, Guindy, Chennai – 600032,Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.02.1991
Com. Reg. No.:	18-020359
Capital Investment/ Paid-up Capital:	Rs. 1.880 Millions
CIN No.: [Company Identification No.]	U22122TN1991PTC020359
TAN No.: [Tax Deduction & Collection Account No.]	CHEB00696D
PAN No.: [Permanent Account No.]	AAACB1434C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Labels and Bar Code Stickers.
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 110000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track records. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	D-7, Guindy Industrial Estate, Guindy, Chennai – 600032,Tamilnadu, India
E-Mail :	betterlabels@gmail.com
Tel No:	91-44-42600525/ 4260051
Fax No:	91-44-42600560

DIRECTORS

As on 30.09.2010

Name :	Mr. Dilip Kumar Sutaria
Designation :	Managing Director
Address :	S/o. Kapur Chand, Old No. 264 – A, TTK Road, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	07.07.1950
Date of Appointment :	20.02.1991
DIN NO:	00631651

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U22122TN1991PTC020359	Better Labels Manufacturing Company Private Limited	Managing director	20/02/1991	20/02/1991	-	Active	NO
2	U18101TN1993PTC025002	Akki Fashions Private Limited	Director	4/1/1995	4/1/1995	-	Active	NO
3	U32109TN2011PTC079614	Better Smart Cards India Private Limited	Director	11/3/2011	11/3/2011	-	Active	NO

Name :	Mr. Pakshal Dilip Kumar Sutaria
Designation :	Director
Address :	S/o. Dilip Kumar Sutaria, Old No. 264 – A, TTK Road, Alwarpet, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	21.09.1979
Date of Appointment :	09.08.2005
DIN NO:	00831602

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U22122TN1991PTC020359	Better Labels Manufacturing Company Private Limited	Director	9/8/2005	9/8/2005	-	Active	NO
2	U72900TN2007PTC062376	Technicon Automation Solutions Private Limited	Director	14/02/2007	14/02/2007	1/7/2007	Active	NO
3	U32109TN2011PTC079614	Better Smart Cards India Private Limited	Managing director	11/3/2011	11/3/2011	-	Active	NO
4	U74930TN2011PTC080951	Conpro Enterprises Private Limited	Director	6/6/2011	6/6/2011	-	Active	NO

Name :	Ms. Yogini Dilip Sutaria
Designation :	Director
Address :	W/o. Dilip Kumar Sutaria, Old No. 264 – A, TTK Road, Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	18.05.1954
Date of Appointment :	02.08.1993
DIN NO:	00631665

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U22122TN1991PTC020359	Better Labels Manufacturing Company Private Limited	Director	2/8/1993	2/8/1993	-	Active	NO
2	U32109TN2011PTC079614	Better Smart Cards India Private Limited	Director	11/3/2011	11/3/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Dilip Kumar Sutaria	3760
Pakshal Dilip Kumar Sutaria	9192
Yogini Dilip Sutaria	5828
Archana D Sutaria	20
Total	18800

Equity Share breakup (percentage of total equity)

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Labels and Bar Code Stickers.

GENERAL INFORMATION

Customers:

• ICICI Bank
• WIPRO
• Cal Tax
• Lifestyle
• Spic Nourishing Griwth
• 360 Deccan
• Shasun
• Relience Fresh
• GMMCO

Bankers :

Andhra Bank, Mowbrays Road Branch, No. 265, TTK Salai, Alwarpet, Chennai – 600018, Tamilnadu, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
CUB – CC	9.615	10.089
CUB – TL	7.414	8.979
CUB – OSL	7.503	0.000
CUB – Vehicles Loan	0.627	0.000
HDFC – Vehicles Loan	0.051	0.000
ICICI – Swift car loan	0.164	0.000
FI	0.000	0.495
Total	25.374	19.563
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Due to Directors	0.000	5.796
Others	0.000	7.555
Total	0.000	13.351

Banking Relations :	--
Auditors :
Name :	M.V Gangadharan and Associates Chartered Accountants
Address :	B-5, 2^nd Floor, Santhosh Apartments, 33, Halls Road, Egmore, Chennai – 600008, Tamilnadu, India
Tel. No.:	91-44-42159124
E-Mail :	AADPG9970A

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Share	Rs.100/- each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18800	Equity Share	Rs.100/- each	Rs. 1.880 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		1.880	1.880	1.880
2] Share Application Money		8.000	0.000	0.000
3] Reserves & Surplus		17.116	12.024	7.140
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26.996	13.904	9.020
LOAN FUNDS
1] Secured Loans		25.374	19.563	0.624
2] Unsecured Loans		0.000	13.351	0.796
TOTAL BORROWING		25.374	32.914	1.420
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		52.370	46.818	10.440
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29.074	30.927	6.206
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.032	0.032	0.032
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.257	7.247	3.864
	Sundry Debtors	16.236	11.914	4.907
	Cash & Bank Balances	0.245	0.047	0.078
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.800	0.993	0.976
Total Current Assets		28.538	20.201	9.825
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3.912	5.178	5.086
	Other Current Liabilities	0.000	(0.678)	0.713
	Provisions	1.500	0.000	0.000
Total Current Liabilities		5.412	4.500	5.799
Net Current Assets		23.126	15.701	4.026
MISCELLANEOUS EXPENSES		0.138	0.158	0.176
TOTAL		52.370	46.818	10.440

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	60.456	40.769	24.359
		Other Income	0.000	0.000	0.000
		TOTAL (A)	60.456	40.769	24.359
Less	EXPENSES
		Raw material consumed	36.943	25.705	14.714
		Manufacturing Expenses	4.702	2.933	3.092
		Administrative Expenses	5.062	3.076	3.615
		Selling Expenses	0.811	0.414	0.766
		Miscellaneous Expenses	1.251	0.769	0.409
		TOTAL (B)	48.769	32.897	22.596
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.687	7.872	1.763
Less	FINANCIAL EXPENSES (D)		3.241	2.162	0.139
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.446	5.710	1.624
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.854	0.726	0.554
	PROFIT BEFORE TAX (E-F) (G)		6.592	4.984	1.070
Less	TAX (H)		1.500	0.101	0.112
	PROFIT AFTER TAX (G-H) (I)		5.092	4.883	0.958
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.045	1.162	NA
	BALANCE CARRIED TO THE B/S		11.137	6.045	NA
	Earnings Per Share (Rs.)		270.85	259.77	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.42	11.97	3.93
Net Profit Margin (PBT/Sales)	(%)	10.90	12.22	4.39
Return on Total Assets (PBT/Total Assets}	(%)	11.44	9.74	6.67
Return on Investment (ROI) (PBT/Networth)		0.24	0.35	0.11
Debt Equity Ratio (Total Liability/Networth)		1.14	2.69	0.80
Current Ratio (Current Asset/Current Liability)		5.27	4.48	1.69

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

The company’s profit after tax for 2009-10 is Rs. 5.092 Millions as against Rs. 4.883 Millions during 2008-09.

Bankers Charges Report as per Registry

Corporate identity number of the company	U22122TN1991PTC020359
Name of the company	BETTER LABELS MANUFACTURING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D-7, Guindy Industrial Estate, Guindy, Chennai – 600032,Tamilnadu, India Email: betterlabels@gmail.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	10229422
Type of charge	Book debts Movable property (not being pledge) Floating Charge Others – Plant and Machinery, Stocks
Particular of charge holder	Andhra Bank, Mowbrays Road Branch, No. 265, TTK Salai, Alwarpet, Chennai – 600018, Tamilnadu, India Email: bmche255@andhrabank.co.in
Nature of instrument creating charge	1) Composite agreement 2) Letter of sanction
Date of instrument Creating the charge	22.09.2011
Amount secured by the charge	Rs 45.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1) Cash Credit – base rate + 4% presently 14.75% 2) Term Loan – base rate + 4% TP presently 15.00% Terms of repayment 1) Cash Credit – one year 2) Term Loan – Repayment in 84 equal monthly installment starting from one month from the date of final disbursement or 2 months from the date of first disbursement. Interest to be serviced as and when debited. Margin 1) Cash Credit – 25% on inventory and 40% on book debts 2) Term Loan – Machinery 25% erection charges – 50% Extent and operation of the charge 1) Cash Credit – Hypothecation of RM , SIP, FG, Stores and Spares 2) Term Loan – Hypothecation of Machinery and accessories
Short particulars of the property or assets changed	Cash Credit – Hypothecation of RM , SIP, FG, Stores and Spares Term Loan – Hypothecation of Machinery and accessories
Date of last modification prior to the present modification	15.06.2010
Particulars of the present modification	The cash credit limit has now been enhanced from Rs. 19.500 Millions to Rs. 25.000 Millions and new term loan been availed for Rs. 20.000 Millions

FIXED ASSETS:

• Plant and Machinery
• Furniture and Fittings
• Office Equipments
• Computer
• Motor Vehicles

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] 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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.26

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	YES
--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.