MIRA INFORM REPORT

Report Date :

06.03.2014

IDENTIFICATION DETAILS

Name :	AMWAY INDIA ENTERPRISES PRIVATE LIMITED (w.e.f. 14.11.2007)
Formerly Known As :	AMWAY INDIA ENTERPRISES
Registered Office :	First Floor, Elegance Tower Plot No. 8, Non Hierarchical Commercial Centre Jasola, New Delhi - 110025
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.08.1995
Com. Reg. No.:	55-071405
Capital Investment / Paid-up Capital :	Rs.213.929 Millions
CIN No.: [Company Identification No.]	U74899DL1995ULT071405
TAN No.: [Tax Deduction & Collection Account No.]	DELA12367F
PAN No.: [Permanent Account No.]	AAACA5603Q
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the direct selling business and primarily deals in products relating to home care, personal care, nutritional and wellness, service income and others.
No. of Employees :	13000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 9070000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profits of the company has dipped during financial year 2013 however, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions. NOTE: Profit and Loss account for the year 2013 and 2012 is not available.

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.

INFORMATION DENIED

MANAGEMENT NON CO-OPERATIVE (91-124-3058888)

LOCATIONS

Registered Office :	First Floor, Elegance Tower Plot No. 8, Non Hierarchical Commercial Centre Jasola, New Delhi – 110025, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	Charu.saxena@amway.com Yoginder_singh@amway.com
Website :	www.amway.in
Head Office :	Plot No. 84, Sector – 32, Gurgaon – 122001, Haryana, India
Tel. No.:	91-124-3058888
Fax No.:	91-124-3058899
Regional Office:	Ground Floor, Natraj M V Road, Western Express Highway, Andheri (E), Mumbai – 400069, India
Corporate Office :	9^th Floor, Tower A and B, Express Trade Towers 1, Plot No.15-16, Sector 16A, Noida – 201 301, Uttar Pradesh, India

DIRECTORS

As on 30.10.2013

Name :

William Scott Pinckney

Designation :

Managing Director

Address :

K 207, Sanik Farms, New Delhi – 110062, India

Date of Birth/Age :

03.11.1948

Date of Appointment :

15.05.2012

DIN No. :

00017347

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	U74899DL1995ULT071405	AMWAY INDIA ENTERPRISES PRIVATE LIMITED	Managing director	15/05/2012	01/06/1998	-	Active	NO
2	U67200DL2004PLC127937	AMSURE INSURANCE AGENCY LIMITED	Nominee director	27/09/2005	27/09/2005	-	Active	NO
3	U74140DL2004PLC127936	AMSERVE CONSULTANTS LIMITED	Nominee director	30/11/2005	30/11/2005	20/10/2008	Active	NO

Name :

Mr. Anshu Budhraja

Designation :

Director

Address :

House No. 10 A, Paschim Marg, DLF Phase – 1, Gurgaon – 122001, Delhi, India

Date of Birth/Age :

08.01.1971

Date of Appointment :

28.07.2009

DIN No. :

01961019

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	U67200DL2004PLC127937	AMSURE INSURANCE AGENCY LIMITED	Additional director	12/11/2007	12/11/2007	04/05/2009	Active	NO
2	U74899DL1995ULT071405	AMWAY INDIA ENTERPRISES PRIVATE LIMITED	Director	28/07/2009	30/03/2009	-	Active	NO

Name :

Mr. Sanjay Malhotra

Designation :

Alternate director

Address :

A 145, Sector 15, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

22.02.1970

Date of Appointment :

08.09.2009

DIN No. :

02782091

Name :

Michael Arthur Mohr

Designation :

Director

Address :

7926 Silverthornr Drivese, ADA, Michigan – 493019397,

Date of Birth/Age :

20.01.1964

Date of Appointment :

12.03.2013

DIN No. :

06518771

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.10.2013

Name of Shareholders	No. of Shares	%age
Amway Mauritius Investment Company, Mauritius	10696441	50.00
Amway Mauritius Development Company, Mauritius	10696441	50.00
Total	21,392,882	100.00

As on 30.10.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the direct selling business and primarily deals in products relating to home care, personal care, nutritional and wellness, service income and others.

Products :

(31.03.2011)

ITC Code No.	Products and Services
2108.99	Dietary Supplement - Protein Powder
210690.99	Dietary Supplement - Daily Tablets
3306.10	Tooth Paste - Glister

GENERAL INFORMATION

No. of Employees :	13000 (Approximately)
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	Golf View Corporate Tower – B, Sector - 42, Sector Road, Gurgaon - 122002, Haryana, India
PAN No. :	AALFS0506L
Ultimate Holding Company :	Ø Alticor Global Holdings Inc., USA
Companies having substantial interest in voting power and power to direct policies:	Ø Solstice Holdings Inc., USA Ø Alticor Inc., USA Ø Amway International Inc., USA (formerly Amway Corp.) Ø Amway Foreign Investment Co., USA Ø Amway India Development LLC, USA Ø Amway India Investment LLC, USA Ø Amway Nederland Limited, USA Ø Amway Foreign Development LLC, USA
Principal Shareholders:	Ø Amway Mauritius Investment Company, Mauritius Ø Amway Mauritius Development Company, Mauritius
Subsidiary companies	Ø Amserve Consultants Limited Ø Amsure Insurance Agency Limited
Fellow Subsidiaries :	Ø Access Business Group International, LLC

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21392882	Equity Shares	Rs.10/- each	Rs.213.929 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	213.900	213.900	213.900
(b) Reserves & Surplus	2053.800	1804.200	1447.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	2267.700	2018.100	1660.900
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	30.000	46.700	28.200
(d) long-term provisions	17.200	76.600	201.600
Total Non-current Liabilities (3)	47.200	123.300	229.800
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	2060.200	1838.200	2033.000
(c) Other current liabilities	923.200	898.900	977.000
(d) Short-term provisions	2786.000	2643.700	1990.700
Total Current Liabilities (4)	5769.400	5380.800	5000.700
TOTAL	8084.300	7522.200	6891.400
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	558.700	242.900	206.100
(ii) Intangible Assets	55.600	63.400	40.600
(iii) Capital work-in-progress	73.200	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.100	101.100	1.100
(c) Deferred tax assets (net)	335.500	498.200	495.400
(d) Long-term Loan and Advances	194.700	126.800	105.400
(e) Other Non-current assets	0.800	2.700	1.700
Total Non-Current Assets	1219.600	1035.100	850.300
(2) Current assets
(a) Current investments	1709.400	554.700	545.600
(b) Inventories	1593.400	1630.600	1735.600
(c) Trade receivables	0.000	79.500	159.500
(d) Cash and cash equivalents	2863.300	3739.800	3120.800
(e) Short-term loans and advances	693.900	469.800	470.200
(f) Other current assets	4.700	12.700	9.400
Total Current Assets	6864.700	6487.100	6041.100
TOTAL	8084.300	7522.200	6891.400

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
INCOME	NA	NA	1838.000

NOTE: Profit and Loss account for the year 2013 and 2012 is not available.

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt/Networth)	0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)	1.19	1.20	1.21

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	213.900	213.900	213.900
Reserves & Surplus	1447.000	1804.200	2053.800
Net worth	1,660.900	2,018.100	2,267.700
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last one year	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	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	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

NOTE:

The registered office of the company has been shifted from Plot No.5, DDA Local Shopping Centre, Okhla Commercial Centre, Phase-II, New Delhi – 110 020 to the present address w.e.f. 01.07.2010.

INDEX OF CHARGES

No Charges Exist for Company

CORPORATE INFORMATION

The Company is a private company domiciled in India and incorporated under the provisions of The Companies Act, 1956. The Company was established in 1995, commenced commercial operations in May 1998 and has emerged as the largest direct selling Company in India. It offers a wide-ranging portfolio, consumer healthcare products, beauty and personal care products and household products. It is a wholly owned subsidiary of Alticor Global Holdings Inc., Ada, Michigan, USA which is one of the largest direct selling companies in the world. In addition to this, the Company provides management consultancy, infrastructure facilities and business and data processing services.

FINANCIAL PERFORMANCE

Amway India, the largest direct selling FMCG Company, will set up a new manufacturing facility in the country at total investment of Rs.5000.000 millions to manufacturer Nutrition and beauty brands. Later on facility can be expanded to make other products.

The company witnessed a growth of 3%over last year. The categories which have grown over previous year are Nutrition and Wellness by 9%, homecare by 3% and personal care by 3%.

INDUSTRY OUTLOOK

The Direct Selling Industry is growing at the compound annual growth rate (CAGR) of 20% and is expected to reach Rs.71200.000 millions in 2013. The slowdown has not deterred consumer sentiment. The smart consumers of today prefer 100% Money bank guarantee schemes and door to door services. Direct selling has its reach in small cities and remote villages, apart from tier I, tier II and III cities.

INITIATIVES TO IMPROVE AWARENESS

The Company has announced a new brand identity logo for its Home care segment Amway Home representing the segment in line with its long term global marketing and business strategy. Amway has been advertising in the print media and TV Companying throughout the year. The effect of advertising in visual media is that awareness has increased manifold. Their TV ad campaigns have definitely enhanced the brand Amway on a national scale. The expansion of the product basket in health and beauty segment and the launch of e learning, a significant step towards education, knowledge update and productivity enhancement of business owners, have contributed to robust growth in the current fiscal.

SUBSIDIARIES

The subsidiaries are doing extremely well and business has grown over previous years. Insurance business has witnessed a growth in India and both Amsure and Amserve are riding on the boom.

1. Amsure Insurance Agency Limited (Amsure)

Amsure was incorporated in July 2004 to take up the corporate agency in the field of life insurance. Amsure is a corporate agent for Max Life Insurance Company Limited. It commenced operations from the 17 th October, 2005.

2. Amserve Consultants Limited (Amserve)

Amserve was incorporated in July 2004 to provide back office and consultancy services in the field of Insurance. Amserve provide back office support to Max Life Insurance Company Limited. It commenced operations from the 17^th October, 2005.

FIXED ASSETS

Ø Leasehold Improvements

Ø Plant and Machinery

Ø Equipment and Appliances

Ø Moulds, Jigs and Dies

Ø Vehicles

Ø Furniture and Fixtures

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.61.85
UK Pound	1	Rs.103.06
Euro	1	Rs.84.92

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	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		49

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.