MIRA INFORM REPORT

Report Date :

24.10.2013

IDENTIFICATION DETAILS

Name :	RIALTO ENTERPRISES PRIVATE LIMITED
Registered Office :	144/7, Old Mahenalipuram Road, Kotttivakkam, Chennai – 600041, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.12.1993
Com. Reg. No.:	18-026288
Capital Investment / Paid-up Capital :	Rs. 1.000 Million
CIN No.: [Company Identification No.]	U30007TN1993PTC026288
TAN No.: [Tax Deduction & Collection Account No.]	CHER06488G
PAN No.: [Permanent Account No.]	AAACR3589E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Toothbrushes and also Selling of Engineering Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 22000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appear huge external borrowings recorded by the company during the year 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 traqde 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : (B+)
Rating Explanation	High risk of default.
Date	November 20, 2012

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/ Head Office :	144/7, Old Mahenalipuram Road, Kotttivakkam, Chennai – 600041, Tamilnadu, India
Tel. No.:	91-44-24543794/ 24543595/ 24543868/ 24543574
Fax No.:	91-44-24543871
E-Mail :	rayala1948@sify.com info@rayalacorp.com
Website :	http://www.rayalacorp.com
Admin Office/ Factory :	Survey No.100/1 and 2, Vandalur–Kelambakkam Road, Melakottaiyur, Chennai – 600048, Tamilnadu, India
Tel. No.:	91-44-27477770
E-Mail :	swamy.c.1@pg.com rarala1948@sify.com

DIRECTORS

AS ON 26.09.2012

Name :

Mr. Ranjit Pratap

Designation :

Managing director

Address :

3 (Old No. 14) Ranjit Road, Kottur, Chennai – 600085, Tamilnadu, India

Date of Birth/Age :

13.01.1953

Date of Appointment :

05.10.2005

PAN No.:

AAIPR4186J

DIN No.:

00267767

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	U34103TN1948PTC002216	RAYALA CORPORATION PRIVATE LIMITED	Managing director	26/06/1988	26/06/1988	-	Active	NO
2	U29130TN1997PTC037245	RIALTO ENGINEERING PRIVATE LIMITED	Director	01/01/1997	01/01/1997	-	Active	NO
3	U30007TN1993PTC026288	RIALTO ENTERPRISES PRIVATE LIMITED	Managing director	05/10/2005	05/10/2005	-	Active	NO
4	U99999MH1956NPL009708	THE INDO GERMAN CHAMBER OF COMMERCE	Director	26/09/2007	26/09/2007	-	Active	NO
5	U29297GJ2008PTC068562	ET ELASTOMER TECHNIK INDIA PRIVATE LIMITED	Director	26/06/2008	26/06/2008	14/03/2011	Active	NO
6	U93090TN1956NPL000006	AUTOMOBILE ASSOCIATION OF SOUTHERN INDIA	Director	07/09/2011	07/09/2011	-	Active	NO
7	U55101TN2013PTC092213	RUCAKA LUXURY HOTELS PRIVATE LIMITED	Director	19/07/2013	19/07/2013	-	Active	NO

Name :

Mr. Venkataraman Sankaranarayanan

Designation :

Director

Address :

4-B, Shiyam's Anugraha, 18, Vathiyarthottam, Main Road, Rangarajapuram, Chennai – 600024, Tamilnadu, India

Date of Birth/Age :

26.09.1946

Date of Appointment :

13.03.2002

DIN No.:

00268082

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	U30007TN1993PTC026288	RIALTO ENTERPRISES PRIVATE LIMITED	Director	13/03/2002	13/03/2002	Active	NO
2	U34300TN2006PTC058848	RAND ENTERPRISES PRIVATE LIMITED	Director	13/02/2006	13/02/2006	Active	NO

Name :

Mr. Subramanian

Designation :

Director

Address :

8, Murali Ram Flats, Kannika Colony 1st Street, Nanganallur, Chennai – 600061, Tamilnadu, India

Date of Birth/Age :

26.04.1964

Date of Appointment :

12.06.2002

DIN No.:

00268197

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	U30007TN1993PTC026288	RIALTO ENTERPRISES PRIVATE LIMITED	Whole-time director	12/06/2002	12/06/2002	Active	NO
2	U34300TN2006PTC058848	RAND ENTERPRISES PRIVATE LIMITED	Director	13/02/2006	13/02/2006	Active	NO

Name :

Mr. Ranvir Ranjit

Designation :

Director

Address :

Old 14, New 3, Ranjit Road, Kottur, Chennai – 600085, Tamilnadu, India

Date of Birth/Age :

26.10.1976

Date of Appointment :

01.06.2006

PAN No.:

AGIPR7262H

DIN No.:

00350629

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	U30007TN1993PTC026288	RIALTO ENTERPRISES PRIVATE LIMITED	Whole-time director	01/06/2006	14/06/2001	-	Active	NO
2	U29297GJ2008PTC068562	ET ELASTOMER TECHNIK INDIA PRIVATE LIMITED	Director	26/06/2008	26/06/2008	14/03/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2012

Names of Shareholders	No. of Shares
Ranjit Pratap	89400
Ranvir Ranjit	10600
Total	100000

AS ON 26.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Toothbrushes and also Selling of Engineering Products.

Products/ Services :

ITC Code No.	Product Descriptions
96032100	Tooth Brush

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed and Installed Capacity	Actual Production
Monopod Assembly	Not Applicable	0
Tooth Brush		196579308
Shaver Brush		624000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India, Adyar Branch, 33/3; 1 - St Main Road; Gandhi Nagar; Adyar, Chennai - 600020, Tamil Nadu, India

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from banks	34.638	0.000
Term loans from others [Secured by respective assets purchased under Hire Purchase]	0.357	3.911
SHORT TERM BORROWINGS
Term loans from banks	51.330	0.000
Total	86.325	3.911

Banking Relations :	--
Auditors :
Name :	P. Chandrasekar Chartered Accountants
Address :	No 6 (36), Krishnaswamy Avenue, II Floor, Luz Mylapore, Chennai – 600004, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AABFP1536H
Enterprises in which Key Managerial Personnel have significant influence :	· Rayala Corporation Private Limited [U34103TN1948PTC002216] · Rialto Engineering Private Limited [U29130TN1997PTC037245] · Ranjit Enterprises · Vira Properties (Madras) Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 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	1.000	1.000
(b) Reserves & Surplus	4.609	4.200
(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)	5.609	5.200
(3) Non-Current Liabilities
(a) long-term borrowings	34.995	3.911
(b) Deferred tax liabilities (Net)	3.740	1.774
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	38.735	5.685
(4) Current Liabilities
(a) Short term borrowings	61.589	8.579
(b) Trade payables	316.928	88.195
(c) Other current liabilities	127.566	96.022
(d) Short-term provisions	6.325	3.819
Total Current Liabilities (4)	512.408	196.615
TOTAL	556.752	207.500
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	72.507	22.581
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	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	108.702	51.494
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	181.209	74.075
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	217.735	95.611
(c) Trade receivables	133.071	8.781
(d) Cash and cash equivalents	24.737	29.033
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.000	0.000
Total Current Assets	375.543	133.425
TOTAL	556.752	207.500

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.000
2] Share Application Money		0.000
3] Reserves & Surplus		3.077
4] (Accumulated Losses)		0.000
NETWORTH		4.077
LOAN FUNDS
1] Secured Loans		9.820
2] Unsecured Loans		42.657
TOTAL BORROWING		52.477
DEFERRED TAX LIABILITIES		1.398
TOTAL		57.952
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.306
Capital work-in-progress		0.000
INVESTMENT		1.936
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.320
	Sundry Debtors	17.939
	Cash & Bank Balances	46.516
	Other Current Assets	0.000
	Loans & Advances	29.071
Total Current Assets		147.846
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	114.668
	Other Current Liabilities	0.000
	Provisions	1.468
Total Current Liabilities		116.136
Net Current Assets		31.710
MISCELLANEOUS EXPENSES		0.000
TOTAL		57.952

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.996	4.998	5.889
Less/ Add	DEPRECIATION/ AMORTISATION		3.079	2.003	1.970
	PROFIT BEFORE TAX		4.917	2.995	3.919
Less	TAX		4.466	1.876	2.081
	PROFIT AFTER TAX		0.451	1.119	1.838
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	17.516	1.446	1.078
	Earnings Per Share (Rs.)		4.51	11.19	18.39

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	0.88	1.44	2.28
Return on Investment (ROI) (PBT/Networth)		0.88	0.58	0.96
Debt Equity Ratio (Total Debt/Networth)		17.22	2.40	12.87
Current Ratio (Current Asset/Current Liability)		0.73	0.68	1.27

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	No
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10284561	30/08/2012 *	199,200,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B59399295

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Term loans from others	10.259	8.579
Total	10.259	8.579

FIXED ASSETS:

· Buildings

· Office building

· Plant and equipment

· Factory equipments

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other 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. 61.53
UK Pound	1	Rs. 99.75
Euro	1	Rs. 84.75

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.