MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	PREETHI KITCHEN APPLIANCES PRIVATE LIMITED
Registered Office :	Technopolis Knowledge Park, 2nd Floor, Mahakali Caves Road, Chakala, Andheri (East),  Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.02.2011
Com. Reg. No.:	11-213827
Capital Investment / Paid-up Capital :	Rs. 142.949 Millions
CIN No.: [Company Identification No.]	U36993MH2011PTC213827
PAN No.: [Permanent Account No.]	AAFCP8830K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Seller of Domestic Appliances.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

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 and delayed
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded huge accumulated losses. The external borrowing also seems to be huge. However, business is active. Payments are reported to be slow and delayed. The company can be considered for business dealings on a safe and 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 – 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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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 :	Technopolis Knowledge Park, 2nd Floor, Mahakali Caves Road, Chakala, Andheri (East),  Mumbai – 400093, Maharashtra, India
Tel. No.:	91-44-24964477/24960349
Fax No.:	91-44-24343344
E-Mail :	achuthan.raman@philips.com
Website :	http://www.preethi.in
Corporate Office :	Futura Tech Park, Q4 , 4th Floor, Block B #334, OMR Sholinganallur, Chennai – 600119, Tamilnadu, India
Factory 1 :	Natham Ekattur Road, Thalambur Village, Chengalpet (TK), Kancheepuram District – 603103, Tamilnadu, India
Factory 2 :	Village Sallewal, Bharatgarh Road, Nalagarh, District – Solan – 174101, Himmachal Pradesh, India
Customer Care Office:	4/5, 4th Cross Street, Seethamal Colony, Alwarpet, Chennai - 600018, Tamilnadu, India
Tel. No.:	91-44-24328822
E-Mail :	care@preethi.in

DIRECTORS

As on 13.08.2012

Name :

Mr. Nandakishore Raman

Designation :

Director

Address :

D 100, Second Floor, Anand Niketan, New Delhi – 110021, India

Date of Birth/Age :

25.04.1955

Date of Appointment :

10.12.2012

DIN No.:

06445449

Name :

Mr. Angarai Dorairjan Aditya Ratnam

Designation :

Director

Address :

B-1/001 Ananda Apartments, Sector 48, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

25.04.1960

Date of Appointment :

13.08.2012

DIN No.:

05296020

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	U36993MH2011PTC213827	Preethi Kitchen Appliances Private Limited	Director	13/08/2012	05/06/2012	-	Active	NO
2	U74900HR2013PTC049759	WOOX Innovations India Private Limited	Director	08/07/2013	08/07/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Achuthan R.
Designation :	Secretary
Address :	25, VGP Selva Nagar Extension, Velachery, Chennai – 600042, Tamilnadu, India
Date of Birth/Age :	23.10.1979
Date of Appointment :	17.02.2012
PAN No.:	AMEPR0253N
Name :	Mr. Niroy
Designation :	Deputy Manager

MAJOR SHAREHOLDERS

As on 13.08.2012

Names of Shareholders	No. of Shares	Remarks
Rajiv Jivanlal Wani	100	Held as Nominal Shareholders for Philips Electronics India Limited
Gaurav Malik	100
Philips Electronics India Limited, India	14294860
Harihar Subramaniak	100	Held as Nominal Shareholder for Philips Limited
Rajeev Chopra	100
T. K. Das	100
Yashwant Mahadik	100
Vijay Srinivasan	100

Equity Share Break up (Percentage of Total Equity)

As on 13.08.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Domestic Appliances.

Products :

Product Description	ITC Code
Coffee Maker	85167100
Induction cooker	85166000
Mixer Grinder	85094010

PRODUCTION STATUS As on 31.03.2012

Particulars	Unit	Installed Capacity	Actual Production
Jars	Pieces	4083333	3276014
Injection Moulding	-	2333333	1837852
Mixer grinder	Pieces	1633333	1287350
Motor	Pieces	1050000	763126
Induction cook tops	Pieces	816667	627393
Electric irons	Pieces	128333	105318
Electric rice cookers	Pieces	128333	103685
Spares, scraps and accessories	-	116667	96900
S. S. Jar	Pieces	87500	68321
Coffee Maker	Pieces	46667	32346
Wet Grinder	Pieces	29167	23001
Electric Pressure Cooker	Pieces	4083	2758

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans taken for vehicles (The Lease Term for the Vehicles ranges between 4-5 years with equated monthly payments commencing from the month subsequent to commencement of lease)	0.699	1.518
Total	0.699	1.518

Banking Relations :	--
Auditors :
Name :	B.S.R. and Company Chartered Accountant
Address :	Building No-10, 8th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon – 122002, Haryana, India
PAN No.:	AAAFB9852F
Holding Company :	Philips Electronics India Limited CIN No.: U31902WB1930PLC006663
Ultimate Holding Company :	Koninklijke Philips Electronics N.V.(KPENV)
Fellow Subsidiary Company :	· Philips Electronics Singapore Pte Limited · Philips Electronics Malaysia Pte Limited · Philips Consumer LifeStyle Korea · Philips Electronics Middle East Africa and BV · Philips Do Brasil Ltda, Brazil

CAPITAL STRUCTURE

As on 13.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14294860	Equity Shares	Rs.10/- each	Rs. 142.949 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	142.949	142.949
(b) Reserves & Surplus	(1571.439)	68.487
(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)	(1428.490)	211.436
(3) Non-Current Liabilities
(a) long-term borrowings	5400.699	5401.518
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	33.071	10.268
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	5433.770	5411.786
(4) Current Liabilities
(a) Short term borrowings	1364.908	480.600
(b) Trade payables	626.513	503.674
(c) Other current liabilities	262.348	265.340
(d) Short-term provisions	27.760	30.265
Total Current Liabilities (4)	2281.529	1279.879
TOTAL	6286.809	6903.101
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	461.094	483.854
(ii) Intangible Assets	4685.660	5474.794
(iii) Capital work-in-progress	0.881	0.000
(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	74.466	73.477
(e) Other Non-current assets	0.440	0.946
Total Non-Current Assets	5222.541	6033.071
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	721.668	508.231
(c) Trade receivables	192.288	194.734
(d) Cash and cash equivalents	43.206	28.475
(e) Short-term loans and advances	107.106	138.590
(f) Other current assets	0.000	0.000
Total Current Assets	1064.268	870.030
TOTAL	6286.809	6903.101

PROFIT & LOSS ACCOUNT

PARTICULARS			31.03.2013	31.03.2012
GROSS INCOME			4743.000	4381.000
EXPENSES
	Office Expenses
	Administrative Expenses
	Advertising Expenses
	TOTAL		6383.000	5170.000
PROFIT/(LOSS) BEFORE TAX)			(1640.000)	(789.000)
TAX			0.000	0.000
PROFIT/(LOSS) AFTER TAX			(1640.000)	(789.000)
EARNINGS IN FOREIGN CURRENCY
		Export Earnings	142.595	81.000
TOTAL EARNINGS			142.595	81.000
IMPORTS
		Raw Materials	60.867	898.000
		Finished Goods	76.798	5.000
TOTAL IMPORTS			137.665	903.000
Earnings Per Share (Rs.)			(114.72)	(64.25)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	(143.96)	(82.67)
Return on Investment (ROI) (PBT/Networth)		(1.15)	(3.73)
Debt Equity Ratio (Total Debt /Networth)		(4.74)	(27.82)
Current Ratio (Current Asset/Current Liability)		0.47	0.69

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 two years	Yes
12]	Profitability for last two 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	No
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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Fully Convertible Debentures Intercorporate (The Compulsorily Convertible Debentures are convertible into equal number of equity shares at the end of 5 years from the date of issue with a face value of Rs 10 and a premium of Rs 105)	5400.000	5400.000
Short Term Borrowings
Rupee term loans from banks	404.908	0.000
Loans Repayable on demand	20.000	0.000
Intercorporate Deposits	940.000	480.600
Total	6764.908	5880.600

BRIEF BACKGROUND OF THE COMPANY

Subject was incorporated as on February 21, 2011. It is a wholly owned subsidiary of Philips Electronics India Limited. The Company sells mixies, table top grinders, coffee makers, Induction cookers, electric rice cookers, electric kettle, electric iron, electric pressure cooker and vessels for induction cooker.

BUSINESS PERFORMANCE:

The operations of the Company gained further momentum during the year 2012-13. The market environment continued to remain depressed due to external economic situation as well as lower power availability. The distribution of free Mixer Grinders and Wet grinders by the Tamilnadu State government continued to impact the sale of these items in the state. The lower power availability in all the four southern states also impacted the sale of Induction Cook Tops. The Company aims to regain its share in the mixer grinder market with planned introduction of new products to different segments of the market. They are also looking to further expand our product portfolio into other categories like Table Top Grinders, Blenders, Choppers, and Food Processors etc. The company also plans to increase its focus on Induction Cook Tops with the creation of local manufacturing facility. The commitment to drive local innovation continues with the creation of a Global Innovation and Development centre at Chennai. This Global centre will enable bringing in latest technological inputs and integrate it with local consumer insights to develop locally relevant product innovations. The Company has also made rapid progress in servicing the requirements of Global Philips Organisations as well as Indian diaspora in different countries. Our exports now go to countries like Singapore, the Middle East, and USA, various parts of Europe, and Australia among other places. The Industrial Organisation has been reorganised to provide greater efficiency and higher productivity. They have also set in motion, action to create sufficient capacity taking into consideration the manufacturing capabilities required by both Philips and Preethi brands in the future years. The company has continued to invest in building people capability. Reorganisation of pay and benefits and HR processes, has helped in better HR practices. They will continue to invest in developing people capabilities through continuous training inputs, introduction of international processes and capability building.

NOTE: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

· Office equipments

· Building

· Factory equipments

· Computer equipments,

· Furniture and Fixtures

· Motor vehicles

· Leasehold properties

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. 62.73
UK Pound	1	Rs. 100.92
Euro	1	Rs. 84.06

INFORMATION DETAILS

Report Prepared by :

VNT

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	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		12

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.