MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	DAXAL COSMETICS PRIVATE LIMITED
Registered Office :	347, Mahagujarat Industrial Estate, Sarkhej Bavala Road, N. H. NO. 8A, Village Moraiya, Taluka Sanand, Ahmedabad-382213, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.07.2002
Com. Reg. No.:	04-041026
Capital Investment / Paid-up Capital :	Rs. 2.700 Millions
CIN No.: [Company Identification No.]	U24246GJPTC041026
TAN No.: [Tax Deduction & Collection Account No.]	AHMD01449A AHMD01511G
PAN No.: [Permanent Account No.]	AABCD5269L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Cosmetics and Toiletries Products.
No. of Employees :	55 (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 63000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Naresh Patel
Designation :	Export Manager
Contact No.:	91-2717-329809
Date :	25.09.2013

LOCATIONS

Registered Office/ Factory :	347, Mahagujarat Industrial Estate, Sarkhej Bavala Road, N. H. NO. 8A, Village Moraiya, Taluka Sanand, Ahmedabad-382213, Gujarat, India
Tel. No.:	91-2717-329809
Fax No.:	91-2717-250305
E-Mail :	csdoshiac@gmail.com info@daxalcosmetics.com
Website :	www.daxalcosmetics.com
Area :	35000 sq. ft
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Prashant Hasmukhbhai Desai
Designation :	Managing director
Address :	101, Soham Terrace, Behind Sunrise Park, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	01.01.1969
Qualification :	BE Mechanical
Date of Appointment :	01.07.2003
DIN No.:	00063360
Name :	Mr. Devanshi Prashantkumar Desai
Designation :	Director
Address :	101, Soham Terrace, Behind Sunrise Park, Ahmedabad-380 054, Gujarat, India
Date of Birth/Age :	18.02.1972
Qualification :	B.Com
Date of Appointment :	29.07.2002
DIN No.:	00078410
Name :	Ms. Savitaben Hasmukhbhai Desai
Designation :	Director
Address :	101, Soham Terrace, Behind Sunrise Park, Ahmedabad-380 054, Gujarat, India
Date of Birth/Age :	11.06.1948
Date of Appointment :	03.12.2007
DIN No.:	01846783

KEY EXECUTIVES

Name :	Mr. Naresh Patel
Designation :	Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Desai Savitaben Hasmukhbahi	18000
Devanshi Prashant Desai Jt. 1 Prashant Hasmukhbahi Desai	81000
Desai H. Savitaben Jt. Prashant Desai – INDI.	9000
Prashant H. Patel – HUF JT. Prashant H. Desai – INDI	81000
Prashant H. Patel –INDI JT. Devanshi P. Desai	81000
TOTAL	270000

AS ON 22.02.2013

Names of Allottees	No. of Shares
Devanshi Prashant Desai	150000
Prashant Hasmukhbahi Desai	250000
Prashant Hasmukhbahi Desai (HUF)	96000
Savitaben Hasmukhbahi Desai	4000
TOTAL	500000

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cosmetics and Toiletries Products.

Products :

Item Code No. (ITC CODE)	Product Description
33061020	Toothpaste
33051090	Shampoo
33049910	Beauty Cream

Exports :

Products :

Cosmetics and Toiletries Products

Countries :

· Uganda

· Kenya

· Singapore

· Malaysia

· Dubai

Terms :

Selling :

Cash

Purchasing :

Cash

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

55 (Approximately)

Bankers :

· Punjab National Bank, Sola Road, Ahmedabad-380061, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Term Loans from Bank Hypothecation of Plant and Machinery and other fixed assets created out of bank finance as per cost of project and means of finance and further guaranteed by directors of the company Rs. 0.023 Million + Interest payable every month	0.782	1.067
Vehicle Loan from Banks Secured by way of hypothecation of vehicles Rs. 0.063 Million Emi payable every month	1.246	0.193
Short Term Borrowings
Loans Repayable on Demand from Bank : Cash Credit A/C Secured by way of first charge on all current assets and book assets both present and future and by way of equitable mortgage of factory land and building at Plot No.347, Mahagujarat Industrial Estate, Sarkhej Bavla Road, N H No.8A, Moriaya Taluka Sanad, District Ahmedabad and hypothecation of all movable fixed assets of the company including movable machinery	13.792	9.897
TOTAL	15.820	11.157

Banking Relations :	--
Auditors :
Name :	Nautam R. Vaki and Company Chartered Accountant
Address :	31/B, Saurashtra Society, Opposite Jain Temple, Vikas Gruh Road, Paldi, Ahmedabad-380007, Gujarat, India
Tel No.:	91-11-26620235 / 26651481
PAN No.:	AAFFN3048L

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
270000	Equity Shares	Rs.10/- each	Rs. 2.700 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
270000	Equity Shares	Rs.10/- each	Rs. 2.700 Millions

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
820000	Equity Shares	Rs.10/- each	Rs. 8.200 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
770000	Equity Shares	Rs.10/- each	Rs. 7.700 Millions

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	2.700	2.700
(b) Reserves & Surplus	13.077	11.108
(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)	15.777	13.808
(3) Non-Current Liabilities
(a) long-term borrowings	9.542	3.695
(b) Deferred tax liabilities (Net)	1.280	1.280
(c) Other long term liabilities	2.156	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	12.978	4.975
(4) Current Liabilities
(a) Short term borrowings	13.792	9.897
(b) Trade payables	21.476	12.335
(c) Other current liabilities	5.139	7.827
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	40.407	30.059
TOTAL	69.162	48.842
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	18.545	15.113
(ii) Intangible Assets	0.670	0.000
(iii) Capital work-in-progress	0.477	0.366
(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	0.258	0.214
(e) Other Non-current assets	8.737	1.175
Total Non-Current Assets	28.687	16.868
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	36.375	25.280
(c) Trade receivables	2.194	3.869
(d) Cash and cash equivalents	0.679	0.421
(e) Short-term loans and advances	0.261	2.083
(f) Other current assets	0.966	0.321
Total Current Assets	40.475	31.974
TOTAL	69.162	48.842

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.700
2] Share Application Money		0.000
3] Reserves & Surplus		8.611
4] (Accumulated Losses)		0.000
NETWORTH		11.311
LOAN FUNDS
1] Secured Loans		11.005
2] Unsecured Loans		2.206
TOTAL BORROWING		13.211
DEFERRED TAX LIABILITIES		1.280
TOTAL		25.802
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.453
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.490
	Sundry Debtors	8.678
	Cash & Bank Balances	0.059
	Other Current Assets	0.000
	Loans & Advances	4.255
Total Current Assets		28.482
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.133
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		15.133
Net Current Assets		13.349
MISCELLANEOUS EXPENSES		0.000
TOTAL		25.802

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	65.186	52.078	34.369
		Other Income
		TOTAL (A)	65.186	52.078	34.369
Less	EXPENSES
		Cost of Material Consumed	59.606	46.954	30.108
		Purchase of Stock In Trade
		Employee benefits expenses
		TOTAL (B)	59.606	46.954	30.108
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.580	5.124	4.261
Less	FINANCIAL EXPENSES (D)		2.302	1.687	1.837
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.278	3.437	2.424
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.290	0.941	0.857
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.988	2.496	1.567
Less	TAX (H)		0.019	0.000	0.606
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1.969	2.496	0.961
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	18.858	16.453	15.736
	TOTAL EARNINGS		18.858	16.453	15.736
	IMPORTS
		Raw Materials	0.027	0.050	0.103
	TOTAL IMPORTS		0.027	0.050	0.103
	Earnings / (Loss) Per Share (Rs.)		7.29	--	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.02	4.79	2.80
Return on Total Assets (PBT/Total Assets}	(%)	2.89	5.15	3.83
Return on Investment (ROI) (PBT/Networth)		0.13	0.18	0.14
Debt Equity Ratio (Total Debt /Networth)		1.48	0.98	1.17
Current Ratio (Current Asset/Current Liability)		1.00	1.06	1.88

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

Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Loans and advances from Directors	7.513	2.435
TOTAL	7.513	2.435

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10072967	17/10/2007	750,000.00	PANJAB NATIONAL BANK	B.O SOLA ROAD, AHMEDABAD, GUJARAT - 380061, INDIA	A25707464
2	10058540	18/05/2007	650,000.00	PANJAB NATIONAL BANK	B.O SOLA ROAD, AHMEDABAD, GUJARAT - 380061, INDIA	A18293894
3	80007070	11/01/2013 *	54,840,000.00	PUNJAB NATIONAL BANK	SOLA ROAD, AHMEDABAD, GUJARAT - 380061, INDIA	B67090670
4	80007071	17/01/2013 *	54,840,000.00	PUNJAB NATIONAL BANK	SOLA ROAD, AHMEDABAD, GUJARAT - 380061, INDIA	B67221408
* Date of charge modification

NOTE

The Registered address of the company has been shifted from 205, Milestone Nr Drive in Cinema, Opposite Door Darshan Tower, Drive in Road, Thaltej, Ahmedabad – 380 052, Gujarat, India to present address w.e.f 12.12.2007

OPERATIONS

During the year, Sales and Other income increased from Rs. 52.078 Millions to Rs. 65.186 Millions whereas after depreciation, and provisions for taxation the, company earned Net profit for the year to the tune of Rs. 1.969 Millions. The directors are optimist of achieving better results in the next year.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Computers

· Office Equipment

· Air Condition Machine

· Vehicles

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. 61.58
UK Pound	1	Rs. 98.51
Euro	1	Rs. 83.49

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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.