MIRA INFORM REPORT

Report Date :

20.04.2013

IDENTIFICATION DETAILS

Name :	HONEST MARKETING PRIVATE LIMITED
Registered Office :	Gat No.14, Bableshwar Road, Palse, Nashik – 422 101, Maharashtra
Country :	India
Date of Incorporation :	19.12.1990
Com. Reg. No.:	11-059494
Capital Investment / Paid-up Capital :	Rs. 0.400 million
CIN No.: [Company Identification No.]	U51900MH1990PTC059494
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor and Importer of Liquor and Wine.
No. of Employees :	12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

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 an established company having moderate track record. There appears a 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 condition.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Tushar
Designation :	Accounts Department
Contact No.:	91-253-2801138
Date :	16.04.2013

LOCATIONS

Registered Office :	Gat No.14, Bableshwar Road, Palse, Nashik – 422 101, Maharashtra, India
Tel. No.:	91-253-2801138
Fax No.:	Not Available
E-Mail :	muthasanjeev@yahoo.co.in honestmpl@gmail.com tushar@mileindia.com

DIRECTORS

As on: 28.09.2012

Name :	Mr. Sumeet Gupta
Designation :	Additional Director
Address :	19, 3^rd Floor, Seeta Mahal, Bomanji Petit Road, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	17.08.1974
Date of Appointment :	11.04.2011
DIN No.:	00629996
Name :	Mr. Manish Manubhai Patel
Designation :	Director
Address :	201/A, Shalmar Appartments, Kemps Corner, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	21.07.1966
Date of Appointment :	01.10.2011
DIN No.:	00995661
Name :	Mr. Bhupindersingh Balwantsingh
Designation :	Additional Director
Address :	802, Nisarg Building, 8th Floor ,Nargis Dutt Road, Pali Hill, Bandra, Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	25.09.1954
Date of Appointment :	11.04.2011
DIN No.:	01361270
Name :	Mr. Yohan Arif Aslam Rub
Designation :	Director
Address :	11, Jenkins House, 2^nd Floor, Henry Road, Opposite Electric House, Mumbai – 400001, Maharashtra, India
Date of Birth/Age :	18.08.1975
Date of Appointment :	11.04.2011
DIN No.:	05106461

KEY EXECUTIVES

Name :	Mr. Tushar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Bhupindersingh Balwantsingh	1065
Sumeet Gupta	1065
Manish Manubhai Patel	1870
Total	4000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Distributor and Importer of Liquor and Wine.
Imports :
Products :	Liquor and Wine
Countries :	Scotland
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Specific Management

· S. S. Muthu and Company

· Bacardi Martini India Limited

· Bafna Tyres

Customers :

Retailers and End Users

No. of Employees :

12 (Approximately)

Bankers :

Union Bank of India, Nasik City Branch, 422/23, Maratha Mandir, M. G. Road, Nasik, Nasik - 422001, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Union Bank of India Cash Credit A/c	(0.012)	14.449
Total	(0.012)	14.449

Banking Relations :	--
Auditors :
Name :	S. S .Mutha and Company Chartered Accountant
Address :	First Floor, Vasant Market, Near Canada Corner, Nashik – 422005, Maharashtra, India
PAN.:	ABTPM0285B

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
9900	Equity Shares	Rs.100/- each	Rs. 0.990 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000	Equity Shares	Rs.100/- each	Rs. 0.400 Million

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period:

Particulars	Number of Shares	Amount in Millions
Equity Shares with voting rights
At the beginning of the year	4000	0.400
Add: Issued during the year	-	-
Outstanding during the year	4000	0.400

Details of shares holding more than 5% of paid up Equity Shares Capital:

Particulars	Number of Shares	% Holding
Bhupindersingh Balwantsingh	1065	26.63
Sumeet Gupta	1065	26.63
Manish Manubhai Patel	1870	46.74
Total	4000	100.00

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.400	0.400	0.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(1.583)	(2.354)	(2.241)
NETWORTH		(1.183)	(1.954)	(1.841)
LOAN FUNDS
1] Secured Loans		(0.012)	14.449	16.806
2] Unsecured Loans		53.959	0.000	5.829
TOTAL BORROWING		53.947	14.449	22.635
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		52.764	12.495	20.794
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.714	0.641	0.706
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.027
DEFERREX TAX ASSETS		0.357	0.257	0.138
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.295	5.870	5.191
	Sundry Debtors	30.285	16.275	17.483
	Cash & Bank Balances	(1.430)	0.640	1.077
	Other Current Assets	6.491	4.542	0.000
	Loans & Advances	0.956	1.824	3.816
Total Current Assets		61.597	29.151	27.567
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.901	7.694	6.998
	Other Current Liabilities	1.841	9.727	0.646
	Provisions	0.162	0.133
Total Current Liabilities		9.904	17.554	7.644
Net Current Assets		51.693	11.597	19.923
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		52.764	12.495	20.794

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	144.175	117.506	97.508
		Other Income	12.521	6.158	0.434
		TOTAL (A)	156.696	123.664	97.942
Less	EXPENSES
		Cost of Goods Sold			86.726
		Purchases of Traded Goods			0.000
		Changes in Inventories of Stock in Trade	150.105	120.206	0.000
		Employee Benefit Expenses			0.000
		Administrative Expenses and Other Expenses			8.239
		TOTAL (B)	150.105	120.206	94.965
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.591	3.458	2.977
Less	FINANCIAL EXPENSES (D)		6.344	3.583	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.247	(0.125)	2.977
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.100	0.107	0.135
	PROFIT BEFORE TAX (E-F) (G)		0.147	(0.232)	2.842
Less	TAX (H)		(0.625)	(0.119)	0.246
	PROFIT AFTER TAX (G-H) (I)		0.772	(0.113)	2.596
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2.354)	(2.241)	(4.837)
	BALANCE CARRIED TO THE B/S		(1.582)	(2.354)	(2.241)
	Earnings Per Share (Rs.)		193.00	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.49	(0.09)	2.65
Net Profit Margin (PBT/Sales)	(%)	0.10	(0.19)	2.90
Return on Total Assets (PBT/Total Assets}	(%)	0.24	(0.78)	10.05
Return on Investment (ROI) (PBT/Networth)		(0.12)	0.12	(1.54)
Debt Equity Ratio (Total Debt /Networth)		(45.60)	(7.39)	(12.29)
Current Ratio (Current Asset/Current Liability)		6.22	1.66	3.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE:

The registered office of the company has been shifted from Krishna Kutir Tilak Wadinasik Road, Nasik – 422002, Maharashtra, India to present address w.e.f. 19.11.2012

OPERATION:

The Performance of the company is satisfactory as compared to last year. The sales during the year has increased to Rs. 144.175 Millions to Rs. 117.506 Millions in the Previous Year. The company has earned net profit of Rs. 0.772 Million during the year and net loss of Rs. 0.119 Million in the previous year.

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
From Directors and Related Parties	53.959	0.000
Total	53.959	0.000

FIXED ASSETS

· Computer

· Furniture and Fixtures

· Air Conditioner

· Fax Machine

· Office Equipment

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 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. 54.03
UK Pound	1	Rs. 82.43
Euro	1	Rs. 70.49

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		14

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.