MIRA INFORM REPORT

Report Date :

26.02.2014

IDENTIFICATION DETAILS

Name :	BARROSS ENTERPRISES
Registered Office :	1-8, Block - I, Satt-Adhar Arcade, Near Peddem Sports Complex,-Peddem, Mapusa – 403507, Goa
Country :	India
Financials (as on) :	31.03.2013
Year of Establishment:	2004
Capital Investment / Paid-up Capital :	Rs. 45.294 Millions
PAN No.: [Permanent Account No.]	ACJPB1007F
Legal Form :	Sole Proprietary Concern
Line of Business :	Distributor of pharma products.
No. of Employees :	46 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 180000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having a satisfactory track record. The concern has achieved decent profitability from its operational activities during the financial year 2013. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The concern can be considered for business dealing 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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 :	1-8, Block - I, Satt-Adhar Arcade, Near Peddem Sports Complex,-Peddem, Mapusa – 403507, Goa, India
Tel. No.:	91-832-6520511/12
Fax No.:	Not Available
E-Mail :	admin@barrosent.com
Area:	8000 Sq ft
Location :	Owned
Branch Office :	GS – 1 and GS – 2, Naroo Classic, Campal, Panjim, Goa, India
Tel. No.:	91-832-2425372/6451607
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. Hemant J Barros
Designation :	Proprietor
Address :	The Bougainville, Altinho, Mapusa, Bardez – 403507, Goa, India
Date of Birth/Age :	08.12.1967
Qualification :	B Com

BUSINESS DETAILS

Line of Business :

Distributor of pharma products.

GENERAL INFORMATION

Suppliers:

Name:	Sanofi India Limited
Contact Person Name:	Mr. Naronha
Designation:	Manager
Mobile No.:	91-9371036263
Remark:	Spoke with Mr. Noronha – Manager, he informed that company is very good.

Name:	Aditya Medisales
Contact Person Name:	Mr. Kanan
Designation:	Chief Financial Accountant
Mobile No.:	91-9820053535
Remark:	Spoke with Mr. Kanan – (Chief Financial Accountant of Goa) he informed that company is good.

Customers :

Retailers

No. of Employees :

46 (Approximately)

Bankers :

Ratnakar Bank, Mapusa, Goa, India

Facilities :

Cash and Credit: Rs.19.500 Millions

Banking Relations :	--
Auditors :	Not Available
Sister Concern:	Valentino F Pinto Address: Barros Enclave, 77, - B/S, Alttinho, Mapusa – 403507, Goa, India

CAPITAL STRUCTURE

As on 31.03.2013

Capital Account	Rs. In Millions
Hemant Barros
Balance as per last B/Sheet	30.624
Less: Drawings during the year	(16.997)
Add: Credit during year	13.545
Add: Net Profit during the year	18.122
Total	45.294

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013	31.03.2012
SHAREHOLDERS FUNDS
1] Proprietor’s Capital		45.294	30.624
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		45.294	30.624
LOAN FUNDS
1] Secured Loans		4.222	20.828
2] Unsecured Loans		2.421	0.000
TOTAL BORROWING		6.643	20.828
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		51.937	51.452
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.146	21.166
Capital work-in-progress		0.000	0.000
INVESTMENT		0.135	0.135
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	44.126	29.795
	Sundry Debtors	26.389	19.730
	Cash & Bank Balances	5.262	1.575
	Other Current Assets	0.000	0.000
	Loans & Advances	0.200	0.049
Total Current Assets		75.977	51.149
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.023	14.080
	Other Current Liabilities	33.298	6.918
	Provisions	0.000	0.000
Total Current Liabilities		47.321	20.998
Net Current Assets		28.656	30.151
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		51.937	51.452

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income	333.510	167.747
		Other Income	0.203	0.018
		TOTAL	333.713	167.765
Less	EXPENSES
		Cost of Goods Sold	299.724	155.800
		Professional Fees	0.155	0.089
		Salaries and Wages	3.960	2.259
		Travelling and Conveyance	0.102	0.125
		Repairs and Maintenance	0.726	0.832
		Printing and Stationery	0.134	0.074
		Insurance	0.257	0.193
		Interest Paid	1.212	0.036
		Fees and Taxes	0.271	0.042
		Electricity and Water charges	0.197	0.075
		Selling and collection	0.738	0.155
		Other Expenses	5.176	2.429
		TOTAL	312.652	162.109
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		21.061	5.656
Less/ Add	DEPRECIATION/ AMORTISATION		2.939	2.472
	NET PROFIT TRANSFERRED TO PROPRIETORS CAPITAL A/C		18.122	3.184

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	5.43	1.90
Net Profit Margin (PBT/Sales)	(%)	5.43	1.90
Return on Total Assets (PBT/Total Assets}	(%)	18.28	4.40
Return on Investment (ROI) (PBT/Networth)		0.40	0.10
Debt Equity Ratio (Total Debt /Networth)		0.15	0.68
Current Ratio (Current Asset/Current Liability)		1.61	2.44

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	30.624	45.294
Reserves & Surplus	0.000	0.000
Net worth	30.624	45.294
Secured Loans	20.828	4.222
Unsecured Loans	0.000	2.421
Total borrowings	20.828	6.643
Debt/Equity ratio	0.680	0.147

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	167.747	333.510
		98.817

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	167.747	333.510
Profit	3.184	18.122
	1.90%	5.43%

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 two years	Yes
12]	Profitability for last three years	No
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	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

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.61.98
UK Pound	1	Rs.103.31
Euro	1	Rs.85.14

INFORMATION DETAILS

Report Prepared by :

KVT

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	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		45

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.