MIRA INFORM REPORT

Report Date :

02.01.2013

IDENTIFICATION DETAILS

Name :	VLCC PERSONAL CARE LIMITED (w.e.f.13.09.2004)
Formerly Known As :	Vl bodycare private limited VLCC PERSONAL CARE PRIVATE LIMITED
Registered Office :	M-14, Greater Kailash – II, Commercial Complex, New Delhi – 110048
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.09.2000
Com. Reg. No.:	55-107566
Capital Investment / Paid-up Capital :	Rs. 43.750 Millions
CIN No.: [Company Identification No.]	u52212dl2000plc107566
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and sale of skin-care, hair-care and body-care products.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1240000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a reputed name in Personal Care Products. It is a well established and reputed company having fine track record. Latest financial 2011-2012 are missing from the government department. From the available financials i.e.2011, it seems that the company is performing well. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A+ Term Loan
Rating Explanation	The adequate credit quality. It carry average credit risk.
Date	December 2011

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.

LOCATIONS

Registered Office :	M-14, Greater Kailash – II, Commercial Complex, New Delhi – 110048, India
Tel. No.:	91-11-41631975/ 6/ 41632463/ 4
Fax No.:	Not Available
E-Mail :	ujjwal.chakraborty@vlccpersonalcare.com contact@vlcc.co.in nkumar@vlcc.co.in
Website :	www.vlccpersonalcare.com
Corporate Office :	64, HSIDC Sector 18, Maruti Industrial Area, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4719700/ 4011940
Fax No.:	91-124-4011371
Training Office :	S-22/6 DLF Phase III, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-2562026/ 2562027/ 2562028/ 2562029
Fax No.:	91-124-2563051

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Sandeep Ahuja

Father Name: Mr. R.C. Ahuja

Designation :

Director

Address :

C-2619, Sushant Lok-1, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

30.10.1961

Date of Appointment :

01.04.2007

DIN No.:

00043118

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1995PTC068945	ALFA DIRECT PRIVATE LIMITED	Director	27/10/2002	27/10/2002	-	Active	YES
2	U22219DL2000PTC107488	CLOUD CUCKOO FARM AND EDUCATION PRIVATE LIMITED	Director	06/10/2003	06/10/2003	08/01/2009	Strike off	NO
3	U74899DL1996PLC082842	VLCC HEALTH CARE LIMITED	Managing director	01/04/2012	29/07/2004	-	Active	NO
4	U52212DL2000PLC107566	VLCC PERSONAL CARE LIMITED	Director	01/04/2007	09/08/2005	-	Active	NO
5	U74899DL1978PTC009043	L.SHIVA INTERNATIONAL PRIVATE LIMITED	Director	15/11/2005	15/11/2005	23/03/2007	Active	NO
6	U17123DL1981PTC012796	NATRAJ WOOLLEN AND FINISHING MILLS PRIVATE LIMITED	Director	20/04/2010	15/11/2005	-	Active	NO
7	U45201DL1996PTC078850	RAJAWONGSE PROPERTIES AND REAL ESTATE DEVELOPMENT PRIVATE LIMITED	Director	15/11/2005	15/11/2005	-	Active	NO
8	U74996DL2006PLC149773	VLCC RETAIL LIMITED	Director	16/06/2006	16/06/2006	-	Active	NO
9	U26246DL1999PLC099212	V L C C INDIA LIMITED	Director	30/09/2008	25/03/2008	-	Active	NO

Name :

Mr. Narinder Kumar

Father Name: R.N. Gupta

Designation :

Director

Address :

21/43, Shakti Nagar, New Delhi – 110007, India

Date of Birth/Age :

05.01.1963

Date of Appointment :

08.06.2004

DIN No.:

00084464

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U52212DL2000PLC107566	VLCC PERSONAL CARE LIMITED	Director	08/06/2004	08/06/2004	Active	NO
2	U74996DL2006PLC149773	VLCC RETAIL LIMITED	Director	16/06/2006	16/06/2006	Active	NO
3	U26246DL1999PLC099212	V L C C INDIA LIMITED	Director	18/09/2006	18/09/2006	Active	NO

Name :

Mr. Kamal Oberoi

Father Name: Mr. S.N. Oberoi

Designation :

Director

Address :

J-13, 1^st Floor, Saket, New Delhi – 110017, India

Date of Birth/Age :

23.11.1955

Date of Appointment :

18.04.2005

DIN No.:

00713900

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U52212DL2000PLC107566	VLCC PERSONAL CARE LIMITED	Director	18/04/2005	18/04/2005	-	Active	NO
2	U74300DL2005PTC141682	M&C SAATCHI COMMUNICATIONS PRIVATE LIMITED	Director	18/10/2005	18/10/2005	18/08/2011	Active	NO
3	U64200DL2008PTC186070	M&C SAATCHI DIRECT AND DIGITAL COMMUNICATIONS PRIVATE LIMITED	Director	23/12/2008	23/12/2008	18/08/2011	Active	NO
4	U74899DL1996PLC082842	VLCC HEALTH CARE LIMITED	Nominee director	10/11/2010	10/11/2010	-	Active	NO
5	U74999DL2011PTC226030	QUO HOSPITALITY AND TRAVEL STRATEGISTS PRIVATE LIMITED	Managing director	01/11/2011	01/11/2011	-	Active	NO

Name :

Mr. Ashutosh B. Bharadwaj

Father name: Mr. Umesh Chandra Bharadwaj

Designation :

Whole-time director

Address :

Flat No. 7A, GH 3, Orchid Garden, Sun City, Sector 54, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

10.09.1962

Qualification :

PGDBM

Experience :

26 Years

Date of Appointment :

03.08.2010

DIN No.:

03157119

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	Address	No. of Shares
Mukesh Luthra (VLCC Health Care Limited is the Beneficial Owner)	C-42, Anand Niketan, New Delhi-110021, India	1
VLCC Health Care Limited, India	M-14, Greater Kailash-II, Commercial Complex, New Delhi-110048, India	4374994
Vandana Luthra (VLCC Health Care Limited is the Beneficial Owner)	C-42, Anand Niketan, New Delhi-110021, India	1
Meera Bhatia (VLCC Health Care Limited is the Beneficial Owner)	C-42, Anand Niketan, New Delhi-110021, India	1
Pallavi Luthra (VLCC Health Care Limited is the Beneficial Owner)	C-42, Anand Niketan, New Delhi-110021, India	1
Anurag Bhatia (VLCC Health Care Limited is the Beneficial Owner)	Sky Scraper, 18th Floor, Bhulla Bhai Desai Road, Mumbai, Maharashtra, India	1
Sandeep Ahuja (VLCC Health Care Limited is the Beneficial Owner)	C-2619, Sushant Lok-1, Gurgaon-122002, Haryana, India	1
Total		4375000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and sale of skin-care, hair-care and body-care products.
Brand Name :	“Beauty Zone”

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Ayurvedic and Cosmetic Products	Nos.	55,044,000	7,718,861

GENERAL INFORMATION

No. of Employees :

400 (Approximately)

Bankers :

Ø HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Ø Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Ø Indian Overseas Bank, 32-Tagore Villa, Chaktrota Road, Dehradun – 248001, Uttarakhand, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
From Banks	(Rs. In Millions)
Term Loan	40.000	50.438
Cash Credit Loan	98.389	0.000
Total	138.389	50.438
Notes: 1. Cash Credit Loan from banks are secured by an exclusive charge by way of hypothecation of trade receivables and inventories, both present and future. The loan is further secured by a second pari passu charge on all movable fixed assets of the company, both present and future. Cash Credit is also secured by a corporate guarantee provided by VLCC Health Care Limited, the holding Company. Amount due within one year Rs. 98.389 Millions (Previous Year Nil). 2. Term loan from banks are secured by an equitable mortgage of land situated at Haridwar, hypothecation of plant and machinery and all other assets to be acquired thru the term loan and second charge on current assets, both present and future. The loan is further guaranteed by VLCC Health Care Limited. Amount due within one year Rs.10.000 Millions (Previous year Rs.10.000 Millions).

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	7th Floor, Building 10, Tower-B, DLF Cyber City Complex, DLF City Phase-II, Gurgaon – 122002, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AABFD2095B
Holding Company :	VLCC Health Care Limited [U74899DL1996PLC082842]
Enterprise over which the directors of the company and their relatives are able to exercise control or significant influence :	Ø Natraj Woollen and Finishing Mills Private Limited (formerly Eatsmart Foods and Hospitality Private Limited) Ø VLCC Middle East LLC Ø VLCC International LLC Ø VLCC International Inc Ø VLCC Health Care (Bangladesh) Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,375,000	Equity Shares	Rs. 10/- each	Rs. 43.750 Millions

Notes:

1. Out of the above equity shares, 4,374,994 shares are held by VLCC Health Care Limited, the holding Company and 6 shares held by its nominees.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		43.750	43.750	40.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		265.777	156.728	91.666
4] (Accumulated Losses)		0.000	0.000	(41.735)
NETWORTH		309.527	200.478	89.931
LOAN FUNDS
1] Secured Loans		138.389	50.438	134.224
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		138.389	50.438	134.224
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		447.916	250.916	224.155
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		201.393	176.775	41.837
Capital work-in-progress		29.512	1.118	61.978
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	124.057	59.827	55.578
	Sundry Debtors	140.861	87.703	89.965
	Cash & Bank Balances	23.685	14.631	27.452
	Other Current Assets	0.050	0.095	0.146
	Loans & Advances	62.542	28.965	16.443
Total Current Assets		351.195	191.221	189.584
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	112.024	70.042	54.286
	Other Current Liabilities	15.664	11.526	13.415
	Provisions	6.496	36.630	1.546
Total Current Liabilities		134.184	118.198	69.247
Net Current Assets		217.011	73.023	120.337
MISCELLANEOUS EXPENSES		0.000	0.000	0.003
TOTAL		447.916	250.916	224.155

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	630.991	448.666	380.064
		Other Income	5.945	5.283	10.180
		TOTAL (A)	636.936	453.949	390.244
Less	EXPENSES
		Cost of Materials	151.897	115.040	99.386
		Manufacturing Expenses	34.585	21.433	17.562
		Employees Remuneration and Benefits	69.313	38.914	44.666
		Administrative and Other Expenses	66.047	58.574	54.525
		Selling and Distribution Expenses	167.189	120.774	122.664
		Miscellaneous Expenditure written off	0.000	0.003	0.003
		TOTAL (B)	489.031	354.738	338.806
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		147.905	99.211	51.438
Less	FINANCIAL EXPENSES (D)		11.592	9.958	14.402
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		136.313	89.253	37.036
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.154	6.582	3.384
	PROFIT BEFORE TAX (E-F) (G)		126.159	82.671	33.652
Less	TAX (H)		0.381	0.233	1.118
	PROFIT AFTER TAX (G-H) (I)		126.540	82.438	32.534
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.568	(41.735)	(74.269)
Less	APPROPRIATIONS
		Proposed Dividend	0.000	27.349	0.000
		Interim Dividend	15.000	0.000	0.000
		Tax on Dividend	2.491	4.542	0.000
		Transfer to General Reserve	12.654	8.244	0.000
	BALANCE CARRIED TO THE B/S		96.963	0.568	(41.735)
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	41.567	35.816	51.552
	IMPORTS
		Packing Materials	0.700	0.208	0.974
		Raw Materials	0.000	0.608	0.000
		Capital Goods	0.870	0.000	0.000
	TOTAL IMPORTS		1.570	0.816	0.974
	Earnings Per Share (Rs.)		28.92	19.59	8.13

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	19.87	18.16	8.34
Net Profit Margin (PBT/Sales)	(%)	34.95	18.43	8.85
Return on Total Assets (PBT/Total Assets}	(%)	22.83	22.47	14.54
Return on Investment (ROI) (PBT/Networth)		0.41	0.41	0.37
Debt Equity Ratio (Total Liability/Networth)		0.88	0.84	2.26
Current Ratio (Current Asset/Current Liability)		2.62	1.62	2.74

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	No
10]	Designation of contact person	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
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	Yes

BACKGROUND

VLCC Personal Care Limited (‘the Company’) was incorporated in India on September 6, 2000 to carry on the business of manufacturing and sale of skin-care, hair-care and body-care products. The company is a closely held company with 4,374,994 shares held by VLCC Health Care Limited and the balance 6 shares held by VLCC Health Care Limited as beneficial holder.

The accompanying financial statements reflect the results of the activities undertaken by the Company during the year ended March 31, 2011.

BUSINESS OVERVIEW

The personal care product business has planned specific marketing initiatives for each of its product categories to deliver higher growth in sales and profits in coming year. The Company has already launched new products in Q2 of FY12 and has also invested substantially in new packaging. With the plan to launch mass range products, the company has already ramped-up its distributions reach across India. The export of these markets in various markets in Middle East market has been also successful with repeat orders coming from all regions. The products are available not only at retail shops but also at leading modern trade stores in India and Middle East market. The company re-launched its products in Nepal recently. The Company also launched products in Men’s category, a market which is growing very fast in India.

The Company also opened shops in malls under brand name "Beauty Zone”. The Initial response is encouraging and shall help in delivering higher growth in coming years for overall products business.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U52212DL2000PLC107566
Name of the company	VLCC PERSONAL CARE LIMITED
Address of the registered office or of the principal place of business in India of the company	M-14, Greater Kailash – II, Commercial Complex, New Delhi – 110048, India Email: nkumar@vlcc.co.in
This form is for	Creation of charge
Type of charge	Ø Book debts Ø Movable property (not being pledge) Ø Others [Others]
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India Email: manu.bhagat@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Letter of Hypothecation of Stock and Book Debt and Letter of Hypothecation of Machinery dated 25th June 2012
Date of instrument Creating the charge	25.06.2012
Amount secured by the charge	Rs. 50.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanctioned terms Terms of Repayment As per sanctioned terms Margin As per sanctioned terms Extent and Operation of the charge First pari passu charge on stock and book debts both present and future and second pari passu charge on movable fixed assets both present and future Others As per sanctioned terms
Short particulars of the property charged	First pari passu charge on entire book debt and stock of the company both present and future and second pari passu charge on entire movable fixed assets of the company both present and future

FIXED ASSETS:

Ø Leasehold Land

Ø Plant and Machinery

Ø Trademarks

Ø Computers

Ø Furniture and Fixtures

Ø Office Equipments

Ø Vehicles

Ø Cinematographic Film

Ø Leasehold Improvements

Ø Building

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 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. 54.83
UK Pound	1	Rs. 89.23
Euro	1	Rs. 72.48

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.