MIRA INFORM REPORT

Report Date :

11.06.2013

IDENTIFICATION DETAILS

Name :	BRITANNIA DAIRY PRIVATE LIMITED (w.e.f. 23.10.2009)
Formerly Known As :	BRITANNIA NEW ZEALAND FOODS PRIVATE LIMITED
Registered Office :	5/1A, Hungerford Street, Kolkata - 700017, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.03.2002
Com. Reg. No.:	21-191511
Capital Investment / Paid-up Capital :	Rs. 117.800 Millions
CIN No.: [Company Identification No.]	U15201WB2002PTC191511
PAN No.: [Permanent Account No.]	AABCB8795R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Sourcing, Marketing, Distributing and Selling Dairy Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 442400
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The profitability statement of the company is not made available to us. As per the available of 2012, there appears some accumulated losses recorded by the company since 2010. However, the company has performed well and slowly wiping of its losses. Financial position of the company seems to be improving. The subject gets strong managerial and technical support from its parent company. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of experience promoters the company can be considered for business dealings at usual 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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.

LOCATIONS

Registered Office :	5/1A, Hungerford Street, Kolkata - 700017, West Bengal, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	vgbhat@britindia.com

DIRECTORS

As on : 12.07.2013

Name :

Mr. Durgesh Mehta

Designation :

Director

Address :

C- 2, Mill bank, 4, Boat Club Road, 3^rd Avenue, Chennai – 6000028, Tamil Nadu, India

Date of Birth/Age :

10.08.1952

Date of Appointment :

25.09.2007

DIN No.:

00237532

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	U15201WB2002PTC191511	BRITANNIA DAIRY PRIVATE LIMITED	Director	25-09-07	25-09-07	-	Active	NO
2	U70102MH2008PLC183489	BOMBAY DYEING REAL ESTATE COMPANY LIMITED	Director	17-08-09	31-12-08	31-03-10	Active	NO
3	U65990MH1983PLC031492	SCAL SERVICES LIMITED	Director	18-09-09	21-01-09	31-03-10	Active	NO
4	U67120MH1976PLC019304	ARCHWAY INVESTMENT COMPANY LIMITED	Director	09-06-09	21-01-09	31-03-10	Active	NO
5	U70102MH2007PTC175410	BDS URBAN INFRASTRUCTURES PRIVATE LIMITED	Director	25-04-09	21-01-09	-	Active	NO
6	U45200MH2007PTC172150	DB MIG REALTORS AND BUILDERS PRIVATE LIMITED	Director	28-09-09	16-03-09	30-08-10	Active	NO
7	U65990MH1983PLC031477	MACROFIL INVESTMENTS LIMITED	Director	12-08-10	28-05-09	-	Active	NO
8	L24299MH1954PLC009254	NATIONAL PEROXIDE LIMITED	Director	30-07-10	22-07-09	-	Active	NO
9	L17120MH1879PLC000037	THE BOMBAY DYEING AND MANUFACTURING COMPANY LIMITED	Managing director	11-08-10	01-04-10	-	Active	NO
10	U65120MH1988PLC048746	HARVARD PLANTATIONS LIMITED	Director appointed in casual vacancy	28-02-11	28-02-11	-	Active	NO
11	U67120MH1988PLC048681	PLACID PLANTATIONS LIMITED	Director appointed in casual vacancy	28-02-11	28-02-11	-	Active	NO
12	U65990MH1980PLC022589	NAPEROL INVESTMENTS LIMITED	Director	24-06-11	06-04-11	-	Active	NO

Name :

Mr. Venkatarajan Natarajan

Designation :

Director

Address :

101, Elegent Sunny Regency Apartment, Chennakesava layout, Off Hennur Main Road, Bangalore – 560084, Karnataka, India

Date of Birth/Age :

18.10.1964

Date of Appointment :

12.07.2012

DIN No.:

05220857

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	U15440WB1992PTC054793	GANGES VALLY FOODS PRIVATE LIMITED	Director	07-08-12	07-03-12	-	Active	NO
2	U15100MH1984PTC031983	J B MANGHARAM FOODS PRIVATE LIMITED	Director	16-08-12	19-03-12	-	Active	NO
3	U01119TN1996PTC034766	VASANA AGREX AND HERBS PRIVATE LIMITED	Director	28-09-12	28-03-12	-	Active	NO
4	U15419TN1997PLC037876	INTERNATIONAL BAKERY PRODUCTS LIMITED	Director	10-08-12	28-03-12	-	Active	NO
5	U15412AS1985PTC002361	SUNRISE BISCUIT COMPANY PRIVATE LIMITED	Director	07-08-12	28-03-12	-	Active	NO
6	U85110MH1992GAT242375	BRITANNIA EMPLOYEES EDUCATIONAL WELFARE ASSOCIATION PRIVATE LIMITED	Director	13-08-12	28-03-12	-	Active	NO
7	U85110MH1992GAT243304	BRITANNIA EMPLOYEES GENERAL WELFARE ASSOCIATION PRIVATE LIMITED	Director	13-08-12	28-03-12	-	Active	NO
8	U91120MH1992PTC242376	BRITANNIA EMPLOYEES MEDICAL WELFARE ASSOCIATION PRIVATE LIMITED	Director	13-08-12	28-03-12	-	Active	NO
9	U15201WB2002PTC191511	BRITANNIA DAIRY PRIVATE LIMITED	Director	12-07-12	30-03-12	-	Active	NO
10	U15400KA1994PTC015687	MANNA FOODS PRIVATE LIMITED	Director	13-08-12	10-04-12	-	Active	NO
11	U65923MH1983PTC030884	GILT EDGE FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	16-08-12	24-05-12	-	Active	NO
12	U65923MH1983PTC030875	FLORA INVESTMENTS COMPANY PRIVATE LIMITED	Director	16-08-12	24-05-12	-	Active	NO
13	U65990MH1983PTC030883	BORIBUNDER FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	16-08-12	24-05-12	-	Active	NO
14	U15419TN1997PTC039343	SNACKO BISC PRIVATE LIMITED	Director	28-09-12	30-05-12	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vighneshwar Bhat
Designation :	Secretary
Address :	No.3, Gayathri, 5^th Cross, Church Road, New Tippasandra, Bangalore – 560075, Karnataka, India
Date of Birth/Age :	20.07.1974
Qualification :	AICPB222229G
Date of Appointment :	25.02.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 12.07.2013

Names of Equity Shareholders	No. of Shares
Britannia Industries Limited, India	5779999
Raju Thomas	1
Total	5780000

Names of Preference Shareholders	No. of Shares
Britannia Industries Limited, India	6000000
Total	6000000

Equity Share Break up (Percentage of Total Equity)

As on : 12.07.2013

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in Sourcing, Marketing, Distributing and Selling Dairy Products.
Products :	· Dairy Whitener · Butter · Cheese · Ghee · Liquid Milks

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	The HongKong and Shanghai banking Corporation Limited, 7, Mahatma Gandhi Road, Bangalore – 560001, TamilNadu, India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Maruthi Info-Tech Centre,11-12/1 Inner Ring Road, Koramangala
PAN No.:	AAAFB9852F
Holding company ;	· Associated Biscuits International Limited, UK · Britannia Industries Limited, India CIN NO : L15412WB1918PLC002964
Ultimate Holding company :	· Bombay Burmah Trading Corporation Limited, India CIN NO : L99999MH1863PLC000002

CAPITAL STRUCTURE

As on : 12.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions
6000000	Preference Shares	Rs. 10/- each	Rs. 60.000 Millions
	Total		Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5780000	Equity Shares	Rs. 10/- each	Rs. 57.800 Millions
6000000	Preference Shares	Rs. 10/- each	Rs. 60.000 Millions
	Total		Rs. 117.800 Millions

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		117.800	117.800	117.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(7.200)	(162.300)	(204.503)
NETWORTH		110.600	(44.500)	(86.703)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	250.000	460.000
TOTAL BORROWING		0.000	250.000	460.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		110.600	205.500	373.297
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.100	56.400	186.466
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		25.000	91.600	112.466
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	194.800	99.000	116.218
	Sundry Debtors	52.200	29.800	24.523
	Cash & Bank Balances	84.800	80.200	51.928
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	33.800	5.500	4.643
Total Current Assets		365.600	214.500	197.312
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	217.800	116.300	93.677
	Other Current Liabilities	52.100	32.800	22.460
	Provisions	11.200	7.900	6.810
Total Current Liabilities		281.100	157.000	122.947
Net Current Assets		84.500	57.500	74.365
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		110.600	205.500	373.297

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2930.583	2185.500	887.930
		Other Income	4.122	NA	NA
		TOTAL	2934.705	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	2779.573	2143.300	543.950
	PROFIT BEFORE TAX		155.132	42.200	343.980
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		155.132	42.200	343.980
	Earnings Per Share (Rs.)		13.17	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.29	NA	NA
Net Profit Margin (PBT/Sales)	(%)	5.29	1.93	38.74
Return on Total Assets (PBT/Total Assets}	(%)	42.30	15.58	88.48
Return on Investment (ROI) (PBT/Networth)		1.40	(2.30)	257.28
Debt Equity Ratio (Total Debt /Networth)		0.00	205.50	373.30
Current Ratio (Current Asset/Current Liability)		1.30	1.37	1.60

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	No
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	No
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

FINANCIAL RESULTS :

Income from Sales Rs. 2930.583 Millions Other Income Rs. 4.122 Millions Total Income Rs. 2934.705 Millions Less: Total Expenditure Rs. 2779.573 Millions Profit/(Loss) before tax Rs. 155.132 Millions Less: Provision for Taxation - Net Profit/ (loss) after Tax 155.132 Millions Results of operations: The Company saw heightened competition both from local and international players, as well as 17% milk inflation during the year. In this environment, the Company grew profitably by focusing on differentiated products and registered a turnover of Rs. 2930.600 Millions compared to Rs. 2185.500 Millions in the previous year, a growth of 34%. The business achieved Net Profit of Rs. 155.100 Millions (after considering an amortization charge of Rs.55.400 Millions) compared to Net Profit of Rs.42.200 Millions (including an amortization charge of Rs.130.400 Millions) in the previous year. The Company managed this by aggressively controlling cost, improving realization for its products and driving innovation in a very competitive market. With more value-added products in the pipeline, the Company continues to be anchored in building differentiation and increasing distribution and reach for its products.

UNSECURED LOAN :

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Term Loans from Banks	0.000	250.000
Total	0.000	250.000

NOTE :

(A) [The loan outstanding at the end of the previous year was repayable in full at the end of the tenure of the loan on 15 April 2011. Rate of interest being 7.5%] Britannia Industries Limited, the holding company has given a corporate guarantee of Rs. Nil (previous year: Rs. 60) towards the loan.

PRESS RELEASES :

Britannia banks on increased distribution to fuel sale of dairy products

It’s important for Britannia to sell more of its dairy products because volume growth in biscuits is slowing

May 20 2013,

Bangalore: Britannia Industries Limited is expanding distribution of products such as curd and cheese in supermarkets and other modern trade outlets and launching new products as it looks to maintain the high growth of its non-biscuit business.

The maker of Tiger and Good Day biscuits expects sales of its non-biscuit businesses to grow rapidly to Rs.15000.000 Millions in the year ended 31 March, managing director Vinita Bali said. The company reports its full-year results later this month.

“Our target is to continue the high double digit growth rates that we’ve seen in the non-biscuit businesses. We’re looking at innovations in our current products and launching new products in dairy. And we have to increase the availability of these products,” Bali said in an interview.

It’s important for Britannia to sell more of its dairy products because volume growth in biscuits is slowing as the high cost of inputs such as sugar have forced biscuit-makers, including Britannia, to raise prices over the past few years. The Wadia Group company is also facing increased competition in biscuits from Parle Products Limited and ITC Foods.

Unlike biscuits, which companies say are available across 85-90% of urban India and 60-70% of the hinterland, dairy products such as branded milk and cheese aren’t that widely available.

The company needs to boost demand in urban areas and persuade consumers to opt for its products rather than making these at home, said Ashok Namboodiri, who heads Britannia’s dairy business.

“There are hardly any dairy products available in rural areas. It (availability of branded dairy products) is focused in urban areas because there’s still a lot of room for growth. Modern trade is the priority in distribution over the next two to three years given that our target customer is likely to shop there. The idea is to first saturate that channel,” Namboodiri said.

Bali pointed out that not every biscuit outlet is a dairy outlet. “For example, you can’t sell curd in an outlet which doesn’t have a fridge. Curd is available in just six metros and cheese in the top 30 cities,” she said.

However, the company enjoys benefits of scale as it uses the same distributor to sell all its products to retailers.

Apart from cheese and curd, Britannia’s non-biscuit products, which will account for roughly 20-25% of its business, include ready-to-drink beverages such as flavoured milk, ghee, bread, cake and rusk.

A majority of the sales of non-biscuit products come from cheese, curd and ready-to-drink beverages and these three categories will continue to drive growth, Namboodiri said.

Britannia’s non-biscuit products are gaining importance for the company partly because margins are higher than in biscuits, said Bhaveshkumar Jain, analyst at Sushil Financial Services Private Limited.

“The non-biscuit business is going to be a major driver of growth for Britannia. I expect the biscuit business to grow 10-11% over the next years whereas the non-biscuit side will grow at 20-25%. Other players like Nestle and Danone have also sounded very positive about dairy products,” Jain said.

Britannia restructures to enhance growth, plans to scale up operations

Our Bureau, Bengaluru

Britannia Industries Limited has made key organisational changes that will enhance the company’s position to become a comprehensive food company offering a range of products from bakery to dairy. The company recently appointed Varun Berry as the chief  operating officer who will lead its India operations.

Berry has 27 years of experience with leading companies like Hindustan Unilever and Pepsico Foods. His last assignment was with Pepsico Foods India, where he was the chief executive officer.

The company also intends to aggressively scale up its international operations, and at the same time increase the focus on its large and profitable India operations with a view to growing its scale and market share in the face of increased competition.

Vinita Bali, managing director, will focus on international business, the Britannia Nutrition Foundation and new business development, so as to create adjacencies and new opportunities that will lead Britannia from being a mere bakery and dairy player to becoming an all-embracing food company.

“With these changes we are preparing Britannia for high growth in its India operations by catering to the changing food habits of the evolving Indian consumer, and pursuing opportunities for growth in the overall food domain, here and abroad,” said Nusli Wadia, chairman, Britannia Industries Limited.

“The new structure will help Britannia grow faster in India while it also focusses on growth in the international markets and addresses new business opportunities for the company,” Bali said.

Britannia, Danone take different paths to growth in India

June 07, 2013

The two erstwhile partners are a study in contrast when it comes to doing business in world's third-largest economy

One defines speed, while the other is slower in its approach. Britannia and Danone, partners before splitting due to a bitter row in 2009, are a study in contrast with regard to India, the third-largest economy and one of the largest consumption markets in the world.

Britannia, which last week announced a management rejig putting COO Varun Berry in charge of Indian operations, has always believed in quickly identifying new trends in the food and beverage (F&B) segment. The company’s managing director, Vinita Bali, who will now manage international operations at the Rs 6,200-crore company, wasted no time in trading up consumers in biscuits upon taking charge of the company in 2005, fortifying existing bakery products with nutrients in keeping with the growing health consciousness among Indians and adding new products to the firm’s portfolio such as snacks, breakfast products, milk-based health drink, flavoured yoghurt, etc.

Berry is expected to keep the momentum going as the Bangalore-based company looks to transform itself from a bakery-cum-dairy major into a well-rounded packaged F and B company. In a statement last week, Chairman Nusli Wadia said, “We are preparing Britannia for high growth by catering to the changing food habits of the evolving Indian consumer and pursuing opportunities for growth in the overall food domain.”

The $26.91-billion (Rs 1480000 Millions) Danone, which derives 38 per cent of revenues from emerging markets, on the other hand, has opted to focus its attention on its areas of strength including water, dairy products, probiotics and nutrition. While joint ventures and acquisitions have been the way forward for it in water, probiotics and nutrition, in dairy — its biggest vertical globally — the firm has launched products on its own including curd, flavoured yoghurt, lassi and UHT Milk in cities such as  Mumbai, Pune, Bangalore, Hyderabad and Delhi-National Capital Region (NCR).

Jochen Ebert, managing director of Danone Food and Beverages India, which pushes the French major's dairy interests in the country, had told Business Standard earlier metro cities held enough potential for the firm, which meant it would stick to the big cities for now. However, experts argue if Danone proposes to be a serious player in the dairy space in India, dominated by co-operatives such as Amul and Mother Dairy and players such as Nestle at the premium end, it would have to scale up operations quickly by tying up partners that can manufacture and deliver their products across the country.

Danone has partly responded to this challenge by outsourcing production in states such as Maharashtra to third-party players. It, however, continues to manufacture products on its own in the north in its drive to maintain quality. It also continues to manage distribution in the five cities it operates in - making available its lassi, flavoured- and plain-yoghurt only through its own refrigerated trucks.

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. 57.78
UK Pound	1	Rs. 89.71
Euro	1	Rs. 76.24

INFORMATION DETAILS

Report Prepared by :

NIS

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	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.