MIRA INFORM REPORT

Report Date :

25.07.2013

IDENTIFICATION DETAILS

Name :	LOVINCARE COSMETICS PRIVATE LIMITED
Registered Office :	VPO Bela Bathrisub, Tehsil Haroli, District UNA - 174301, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.07.2005
Com. Reg. No.:	06-028633
Capital Investment / Paid-up Capital :	Rs. 0.100 Million
CIN No.: [Company Identification No.]	U24239HP2005PTC028633
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is Engaged with Jobwork Activity for Aerosol Manufacturing.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 43000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of ‘ The Midas care group’. It is an established company having a satisfactory track record. There appears huge external borrowings recorded by the company. However, the company receives better operational and financial support from its group. The promoters are well-experienced and knowledgeable businessmen. Trade relations are decent. Business is active. Payment terms are usally correct and as per commitment. The company can be considered 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	21.05.2013

Rating Agency Name	CRISIL
Rating	Short term rating : A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	21.05.2013

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

Name :	Mr. Sandesh
Designation :	Assistant Manager
Contact No.:	91-42193929
Date :	24.07.2013

LOCATIONS

Registered Office :	VPO Bela Bathrisub, Tehsil Haroli, District UNA - 174301, Himachal Pradesh, India
Tel. No.:	91-97-5201209
Fax No.:	Not Available
E-Mail :	aerosol@vsnl.com sandesh@midas-care.com
Head Office 1 :	Lotus Corporate Park 302 B Wing CTS No.185/A Graham Firth Compound Western Express Highway, Goregaon (East), Mumbai – 400063, Maharashtra, India
Head Office 2 :	Papa Industrial Estate, 40 Suren Road, Andheri (East), Mumbai - 400093, Maharashtra, India

SOLE PROPRIETOR

As on : 29.09.2012

Name :	Mrs. Sangithaa Brijbandhu Gupta
Designation :	Director
Address :	601, "Raheja Orchid", Plot No. 47, 9th Road, JVPD, Juhu, Vile Parle (West), Mumbai- 400056, Maharashtra, India
Date of Birth/Age :	29.11.1962
Date of Appointment :	06.07.2005
DIN No.:	00645197
Name :	Mrs. Divya Rajnikant Khandelwal
Designation :	Director
Address :	701 Vaishali Appartment, Janki Kutir, Juhu, Mumbai -400049, Maharashtra, India
Date of Birth/Age :	06.11.1980
Date of Appointment :	06.07.2005
DIN No.:	00682737

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 29.09.2012

Names of Shareholders	No. of Shares
Sangithaa Brijbandhu Gupta	9960
Divya Rajnikant Khandelwal	40
Total	10000

Equity Share Break up (Percentage of Total Equity)

As on : 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is Engaged with Jobwork Activity for Aerosol Manufacturing.
Terms :
Selling :	Cash and Credit (30 days)
Purchasing :	Cash and Credit (30 days)

PRODUCTION STATUS (31.03.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity
Aerosol Formulation	Rs	NA	52,840,000

GENERAL INFORMATION

Customers :

Others (Manufacturer)

No. of Employees :

100 (Approximately)

Bankers :

v HDFC Bank Vishal Hall Branch, Mumbai, Maharashtra, India

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

Facilities :

Rs in Millions

SECURED LOAN	As on 31.03.2012	As on 31.03.2011
Long term Borrowings
Term loans from HDFC Bank	22.991	30.507
Short term borrowings
Cash credit from HDFC Bank	11.777	19.966
Total	34.768	50.473

Note :

(a} Term Loan taken from HDFC Bank Is secured by Personal Guarantee of one of the Director, Corporate Guarantee of Midai-Care Holding Private Limited and Mortgage of Land and Building, Plant 8i Machinery Installed at the kite at HP and Collateral security o! Land end Building of Midas-Care Pharmaceuticals M Limited at Waluj Aurangabad. Shop at Prime Mall Erie, Mumbai and Factory at UNA, Himachal Pradesh

(b) Working Capital from Bank is secured by hypothecation of raw and packing materials, semi-finished and finished goods and further secured by first legal charge dd Manufacturing Facility at UNA (HP)

Auditors :
Name :	Arora and Arora Chartered Accountants
Address :	12 Dhanlakshmi Hanuman Road, Vile Parle East, Mumbai, Maharashtra, India
Mobile No.:	91-9821050212
E-Mail :	harishh@gmail.com
PAN No.:	AABFA2147F
Group Company :	Midas-care Pharmaceuticals Private Limited

CAPITAL STRUCTURE

As on : 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs. 10/- each	Rs. 0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100
(b) Reserves & Surplus	10.841	(0.191)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	10.941	(0.091)
(3) Non-Current Liabilities
(a) long-term borrowings	76.146	87.397
(b) Deferred tax liabilities (Net)	1.313	1.085
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	77.459	88.482
(4) Current Liabilities
(a) Short term borrowings	11.777	19.966
(b) Trade payables	104.495	48.575
(c) Other current liabilities	47.624	43.790
(d) Short-term provisions	2.253	1.187
Total Current Liabilities (4)	166.149	113.518
TOTAL	254.549	201.909
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	104.065	100.561
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	1.376
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.440	1.187
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	107.505	103.124
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	97.781	74.616
(c) Trade receivables	37.790	16.389
(d) Cash and cash equivalents	3.725	1.483
(e) Short-term loans and advances	7.726	6.271
(f) Other current assets	0.022	0.026
Total Current Assets	147.044	98.785
TOTAL	254.549	201.909

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		0.100
LOAN FUNDS
1] Secured Loans		55.884
2] Unsecured Loans		54.731
TOTAL BORROWING		110.615
DEFERRED TAX LIABILITIES		0.000
TOTAL		110.715
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		108.215
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.694
	Sundry Debtors	2.589
	Cash & Bank Balances	0.783
	Other Current Assets	0.000
	Loans & Advances	3.164
Total Current Assets		57.230
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32.739
	Other Current Liabilities	26.891
	Provisions	0.000
Total Current Liabilities		59.630
Net Current Assets		(2.400)
MISCELLANEOUS EXPENSES		0.029
PROFIT AND LOSS ACCOUNT		4.871
TOTAL		110.715

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	391.573	247.611	107.754
		Other Income	0.926	0.043	0.051
		TOTAL (A)	392.499	247.654	107.805
Less	EXPENSES
		Cost of Materials Consumed	313.930	184.455
		Changes in Inventories of Finished Goods	1.602	6.264
		Employees Benefits Expenses	5.175	4.179
		Other expenses	28.513	24.587
		TOTAL (B)	349.220	219.485	86.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		43.279	28.169	21.605
Less	FINANCIAL EXPENSES (D)		16.047	9.678	10.014
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.232	18.491	11.591
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.972	12.726	13.463
	PROFIT BEFORE TAX (E-F) (G)		11.260	5.765	(1.872)
Less	TAX (H)		0.227	1.085	0.000
	PROFIT AFTER TAX (G-H) (I)		11.033	4.680	(1.872)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.191)	(4.871)	(2.999)
	BALANCE CARRIED TO THE B/S		10.842	(0.191)	(4.871)
	EARNINGS IN FOREIGN CURRENCY		2.643	2.165	NA
	Earnings Per Share (Rs.)		1103.00	468.00	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.81	1.89	(1.74)
Net Profit Margin (PBT/Sales)	(%)	2.88	2.33	(1.74)
Return on Total Assets (PBT/Total Assets}	(%)	7.48	5.77	(3.27)
Return on Investment (ROI) (PBT/Networth)		1.03	5.76	(18.72)
Debt Equity Ratio (Total Debt /Networth)		8.04	4.38	1106.15
Current Ratio (Current Asset/Current Liability)		0.91	0.88	0.96

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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	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	Yes

DETAILS OF CURRENT MATURITIES OF LONG TERM DEBT : NOT AVAILABLE

UNSECURED LOANS :

(Rs in Millions)

PARTICULARS	31.03.2012	31.03.2011
Long term borrowings :
Term Loans
From Directors	20.462	27.562
From Others	32.693	29.328
Total	53.155	56.890

INDEX OF CHARGE :

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1.	10131519	15/02/2013	612,500,000.00	HDFC BANK LIMITED	HDFC Bank Housesenapati Bapat Marg, Lower Parel west, Mumbai, Maharashtra - 400013, India	B68807049
2.	10065649	25/01/2011	110,000,000.00	HDFC BANK LIMITED	HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai, Maharashtra - 400013, India	B07007016

FIXED ASSETS :

v Land

v Factory Buiding

v Plant and Machinery

v Electrical Equipments

v Computer

v Furnitures and Fixtures

v Borewell

v Water Tank Storage Tank

v Office Equipments

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. 59.45
UK Pound	1	Rs. 91.24
Euro	1	Rs. 78.44

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.