MIRA INFORM REPORT

Report Date :

04.09.2014

IDENTIFICATION DETAILS

Name :	SCA HYGIENE PRODUCTS INDIA PRIVATE LIMITED
Registered Office :	33^rd Floor, Sunshine Towers, Senapati Bapat Marg, Dadar (West), Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.05.2012
Com. Reg. No.:	11-231579
Capital Investment / Paid-up Capital :	Rs.92.100 Millions
CIN No.: [Company Identification No.]	U17253MH2012FTC231579
TAN No.: [Tax Deduction & Collection Account No.]	MUMS74505E
PAN No.: [Permanent Account No.]	AARCS7221F
Legal Form :	Private Limited Liability Company
Line of Business :	Importing, exporting, manufacturing, producing, marketing and generally dealing in institutional hygiene products, baby care products, feminine care products, incontinence care products, tissue products and any other hygiene products of every kind and description.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 4100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “SCA GROUP HOLDING – B.V. NETHERLANDS”. It is a relatively new company having moderate track. The company has recently commenced its limited business operations in India and is in its phase of business development. The parent company of the subject is a globally well-established entity with established brands and has forayed into Indian market through its subsidiary i.e. the subject, primarily with its four most renowed brands such as Libero, Tempo, Tena and Tork. Management has reported a consecutive loss from it’s of business operations, but enjoy’s a firm support from its promoters. Trade relations are improving. Business is active. Payment terms are reported as slow but correct. In view of established brand name in the international market, the company can be considered for business dealings with slight caution.

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications: Apex court order may alter coal import dynamics. Traders go slowly on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn Business Empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M a M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Abhijeet Bhairavkar
Designation :	Brand Manager
Contact No.:	91-7053137038
Date :	01.10.2014

LOCATIONS

Registered Office :	33^rd Floor, Sunshine Towers, Senapati Bapat Marg, Dadar (West), Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-49203500
Fax No.:	91-22-49203505 / 45293592
E-Mail :	anjul.agarwal@sca.com ajay.abad@skparekh.com anamika.gupta@sca.com cacilia.edebo@sca.com customercare.india@sca.com
Website :	www.sca.com

DIRECTORS

As on 24.09.2013

Name :

Mr. Darius Erachshaw Udwadia

Designation :

Director

Address :

Empress Court 142, M - Karve Road, Mumbai – 400020, Maharashtra, India

Date of Birth/Age :

27.09.1939

Date of Appointment :

28.05.2012

DIN No.:

00009755

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	L24231KA1979PLC003563	ASTRAZENECA PHARMA INDIA LIMITED	Director	11/07/1979	11/07/1979	-	Active	NO
2	L61000MH1978PLC020435	ITD CEMENTATION INDIA LIMITED	Director	09/02/1983	09/02/1983	-	Active	NO
3	U67120MH1973PTC016844	J M FINANCIAL AND INVESTMENT CONSULTANCY SERVICES PRIVATE LIMITED	Director	01/10/1984	01/10/1984	26/08/2014	Active	NO
4	L85190MH1947PLC005963	WYETH LIMITED	Director	10/01/1985	10/01/1985	26/08/2014	Active	NO
5	L99999MH1863PLC000002	BOMBAY BURMAH TRADING CORPORATION LIMITED	Director	13/08/2014	28/01/1986	-	Active	NO
6	L35999TN1962PLC004792	SUNDARAM -CLAYTON LIMITED	Director	02/12/1987	02/12/1987	24/06/2009	Active	NO
7	U27109WB1931PLC007010	EUREKA FORBES LIMITED	Director	08/02/1989	08/02/1989	27/07/2012	Active	NO
8	U65991MH1994PTC078880	JM FINANCIAL TRUSTEE COMPANY PRIVATE LIMITED	Director	07/11/1994	07/11/1994	-	Active	NO
9	L22122TN1970PLC005795	MPS LIMITED	Director	22/05/2014	29/11/1994	-	Active	NO
10	U05110TZ1992PTC004072	HABASIT IAKOKA PRIVATE LIMITED	Director	14/03/1996	14/03/1996	-	Active	NO
11	U20103MH1971PTC015441	JEHANGIR LENTIN ESTATES PRIVATE LIMITED	Director	11/01/1999	11/01/1999	25/06/2008	Active	NO
12	U65192MH1995PLC092522	JM FINANCIAL INSTITUTIONAL SECURITIES LIMITED	Director	31/08/2000	31/08/2000	30/01/2012	Active	NO
13	L15400GJ1990PLC014265	ADF FOODS LIMITED	Director	13/09/2000	13/09/2000	21/10/2010	Active	NO
14	U73100KA1998PLC030671	AVESTHAGEN LIMITED	Director	12/04/2002	12/04/2002	07/11/2008	Active	NO
15	L32202KA1949PLC032923	ABB India Limited	Director	21/07/2005	21/07/2005	-	Active	NO
16	U67120MH1962PLC012283	IRD MECHANALYSIS LIMITED	Director	28/10/2005	28/10/2005	13/06/2014	Active	NO
17	U65990MH1990PTC055279	QUANTUM ADVISORS PRIVATE LIMITED	Director	07/11/2005	07/11/2005	-	Active	NO
18	U73100KA2005PTC035887	AVESTA NORDIC RESEARCH PRIVATE LIMITED	Director	21/09/2006	29/05/2006	25/06/2008	Active	NO
19	L67120MH1986PLC038784	JM FINANCIAL LIMITED	Director	07/09/2006	01/06/2006	-	Active	NO
20	L24120TG1961PLC000892	COROMANDEL INTERNATIONAL LIMITED	Director	18/07/2006	18/07/2006	21/07/2009	Active	NO
21	U72200TN2004PLC054408	MPS TECHNOLOGIES LIMITED	Director	04/06/2007	22/01/2007	22/04/2008	Amalgamated	NO
22	L99999MH1995PLC089008	DCB BANK LIMITED	Director	18/09/2009	27/01/2007	14/01/2014	Active	NO
23	L07010KA2004PLC033412	NITESH ESTATES LIMITED	Director	17/07/2007	27/03/2007	21/02/2013	Active	NO
24	U29130TZ2007PTC013844	ROSSI GEARMOTORS (INDIA) PRIVATE LIMITED	Director	06/07/2007	06/07/2007	-	Active	NO
25	L34103TN2004PLC054667	WABCO INDIA LIMITED	Director	01/04/2014	07/05/2008	-	Active	NO
26	U51109MH2008PTC180143	CONSERVATION CORPORATION OF INDIA PRIVATE LIMITED	Additional director	25/12/2008	25/12/2008	-	Amalgamated	NO
27	U55101MH2008PTC186772	CONSERVATION CORPORATION OF INDIA PRIVATE LIMITED	Director	24/07/2009	09/04/2009	-	Active	NO
28	U74140MH1993PTC071100	EDELMAN INDIA PRIVATE LIMITED	Director	19/02/2010	19/02/2010	26/11/2010	Active	NO
29	U74140MH1984PLC033397	JM FINANCIAL PRODUCTS LIMITED	Director	10/08/2012	14/05/2012	-	Active	NO
30	U17253MH2012FTC231579	SCA Hygiene Products India Private Limited	Director	28/05/2012	28/05/2012	-	Active	NO
31	U74999MH1922PLC000973	BOMBAY GYMKHANA LIMITED	Director	27/09/2013	27/09/2013	-	Active	NO
32	U29290MH1973PLC016413	CONCAST (INDIA) LIMITED	Additional director	13/06/2014	13/06/2014	-	Active	NO

Name :

Mr. Anthony Gaston Richard Van Luchem

Designation :

Director

Address :

Reiherweg – 6, 81827 Munchen, Munich – 81827, Germany

Date of Birth/Age :

07.02.1966

Date of Appointment :

28.05.2012

DIN No.:

05265032

Name :

Vijayalakshmi Suresh

Designation :

Whole-Time Director

Address :

Flat No. 3, Balaji Prasad,R.B.Mehta Road, Ghatkopar East, Mumbai - 400077, Maharashtra, India

Date of Appointment :

19.02.2014

PAN No.:

ABBPS2481F

DIN No.:

00468626

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	U74999MH2001PTC178568	Diversey India Private Limited	Director	29/11/2006	29/11/2006	03/10/2007	Active	NO
2	U17253MH2012FTC231579	SCA Hygiene Products India Private Limited	Whole-time director	19/02/2014	19/02/2014	-	Active	NO

Name :

Cecilia Margareta Edebo

Designation :

Whole-Time Director

Address :

Flat No. 1702, Beau Monde, Tower - A, 17th Floor, Prabhadevi, Mumbai, 400025, Maharashtra, India

Date of Appointment :

19.02.2014

PAN No.:

ABJPE4508K

DIN No.:

06648722

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	U91110DL2008NPL177380	Swedish Chamber of Commerce India	Director	08/05/2013	08/05/2013	-	Active	NO
2	U17253MH2012FTC231579	SCA Hygiene Products India Private Limited	Whole-time director	19/02/2014	19/02/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Abhijeet Bhairavkar
Designation :	Brand Manager

MAJOR SHAREHOLDERS

As on 24.09.2013

Names of Shareholders	No. of Shares
SCA Hygiene Holding AB, Sweden	1
SCA Group Holding BV, Netherlands	5260000
Total	5260001

As on 30.04.2014

Names of Allottees	No. of Shares
SCA Group Holding BV, Netherlands	5000000
Total	5000000

As on 16.12.2013

Names of Allottees	No. of Shares
SCA Group Holding BV, Netherlands	395000
Total	395000

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2013

Category	Percentage
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 :

Importing, exporting, manufacturing, producing, marketing and generally dealing in institutional hygiene products, baby care products, feminine care products, incontinence care products, tissue products and any other hygiene products of every kind and description.

GENERAL INFORMATION

No. of Employees :	Information denied by management
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company (Approximately)
Address :	5th Floor, Tower "D", The Millenia, 1 and 2 Murphy Road,Ulsoor, Bangalore – 560008, Karnataka, India
PAN No.:	AADFP9359C
Holding Company :	· SCA Hygine Holdings A.B., Sweden (up to 5th December 2012) · SCA Group Holding B.V., Netherlands (from 5th December 2012)
Fellow Subsidiary Company :	· SCA Hygiene Products A.B. Sweden · SCA Hygiene Products Gmbh- Postiach , Germany · SCA Hygiene Products Gmbh- Neuss, Germany · SCA Yldz Kat ve Kiisel Bakim Uretim A.S., Turkey · SCA Hygiene Malaysia SDN BHD, Malaysia · SCA Hijyen Ürünleri San. Ve. TIC. A.S., Turkey

CAPITAL STRUCTURE

After 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14210001	Equity Shares	Rs.10/- each	Rs.142.100 Millions

As on 31.03.2014

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
9210001	Equity Shares	Rs.10/- each	Rs.92.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	92.100	9.000
(b) Reserves & Surplus	423.613	(5.174)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	500.000	109.999
Total Shareholders’ Funds (1) + (2)	1,015.713	113.825
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	2.409	0.000
Total Non-current Liabilities (3)	2.409	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	220.800	34.945
(c) Other current liabilities	25.917	333.553
(d) Short-term provisions	0.174	0.000
Total Current Liabilities (4)	246.891	368.498
TOTAL	1,265.013	482.323
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	244.151	5.137
(ii) Intangible Assets	1.808	1.878
(iii) Capital work-in-progress	264.615	5.036
(iv) Intangible assets under development	4.431	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	44.818	7.037
(e) Other Non-current assets	0.075	0.000
Total Non-Current Assets	559.898	19.088
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	92.642	19.661
(c) Trade receivables	10.237	0.000
(d) Cash and cash equivalents	576.997	439.225
(e) Short-term loans and advances	24.943	2.906
(f) Other current assets	0.296	1.443
Total Current Assets	705.115	463.235
TOTAL	1,265.013	482.323

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	INCOME		NA	NA
	EXPENSES		NA	NA
	PROFIT/(LOSS) BEFORE TAX		(319.113)	(86.174)
Less	TAX		0.000	0.000
	PROFIT/(LOSS) AFTER TAX		(319.113)	(86.174)
	IMPORTS
		Capital Goods ( includes Capital work in progress)	25.374	1.552
	TOTAL IMPORTS		25.374	1.552
	Earnings / (Loss) Per Share (Rs.)		(60.67)	(95.75)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Return on Total Assets (PBT/Total Assets}	(%)	(32.04)	(18.05)
Return on Investment (ROI) (PBT/Networth)		(0.31)	(0.76)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.86	1.26

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions
Share Capital	9.000	92.100
Reserves & Surplus	(5.174)	423.613
Share Application money pending allotment	109.999	500.000
Net worth	113.825	1015.713
long-term borrowings	0.000	0.000
Short term borrowings	0.000	0.000
Total borrowings	0.000	0.000
Debt/Equity ratio	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	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two year	No
12]	Profitability for last two year	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	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

COMPANY INFORMATION

The Company was incorporated on May 28, 2012 as a Private Limited Company, having its registered office in Mumbai, under the Companies Act, 1956. The company is a subsidiary of SCA Group Holdings BV, Netherland. The main objectives of the Company includes the business of importing, exporting, manufacturing, producing, marketing and generally dealing in institutional hygiene products, baby care products, feminine care products, incontinence care products, tissue products and any other hygiene products of every kind and description.

MANAGEMENT DISCUSSION AND ANALYSIS

The Company entered the baby-care market with the launch of its two flagship brands - Libero and Tempo in November 2013, with the objective to establish SCA as the preferred supplier of personal hygiene products in India. Sales operations were launched in the Western states of Maharashtra, Goa and expanded into the Southern states of Kerala and Karnataka in a phased manner. The company sells through multiple sales and distribution channels, including modern trade retail chains and on-line sales platforms. The required supply chain infrastructure to support and grow the company’s sales operations is being established.

The key element of the Company’s marketing for Libero baby care products are the maternity training and sampling activity, combined with selective television and outdoor advertising. The focus of the Tempo tissue campaign is the food platform with trials at fast food chains and key eateries. The key focus for both brands is visibility and trial in order to create pulls out of stores.

The Company is in the process of setting up a diaper manufacturing plant in Ranjangaon near Pune and the construction is progressing as per plan.

OUTLOOK

Given India’s large population and the low penetration of hygiene products, the company sees a strong opportunity to build a local hygiene business. The Directors are hopeful of the growth and the company will achieve better financial performance in the Future.

NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

NEWS:

SCA EYES BIG PIE IN HYGIENE MARKET

The traction in the Indian market has so far been good. India is a continent with different culture

The 10.3 billion euro SCA Hygiene Products of Sweden, which sells the Libero brand of baby diapers among other products, is planning to step on the pedal in a bid to establish itself as a preferred brand for hygiene solutions in India over the long-term.

The company, which started its operations in November 2013, is gearing to up ramp up its sales and distribution as its upcoming Rs.150-crore greenfield manufacturing unit is set to be operational by early next year.

The new plant is expected to make SCA’s products cheaper. It will also help the company grow organically in the near-term in India. The company sees considerable future potential due to large population and limited use of hygiene products.

“We are already in the process of deciding our next investment. We see very good progress in different areas, and will quickly move to Phase-2 investment plans,” Thomas Wulkan, President-Middle East, India and Africa, SCA Hygiene Products AB, said here.

The company is in the process of boosting its own sales and retail presence besides laying a strong thrust on training programmes. “Of course, this journey will take some time, but we are confident that it will be a more successful route to establish our brands,” he added.

SCA is also investing heavily in gaining local knowledge and standards around personal care, hygiene and baby-care products. Its global products are tailored to Indian circumstances. Its Libero brand of baby diapers in India has natural ingredients according to customers’ preferences here.

“The traction in the Indian market has so far been good. For us, India is not a country. It is a continent with different culture. We will build our business step-by-step. Our product offering will combine global practices with local insights,” said Cecilia Edebo, Managing Director, SCA Hygiene Products India.

The firm has embarked on a massive promotional campaign targeted at doctors, midwives, hospitals and baby health clinics. Its Tena brand of incontinence care products will be launched next.

SWEDISH FIRM SCA TO START PRODUCTION IN INDIA NEXT YEAR

SCA, a leading Swedish global hygiene and forest products company, will commence production from its plant at Ranjangaon, near Pune, from next year.

"The construction work at the plant near Pune is almost over and we hope to start manufacturing products such as tissues and diapers including those for adults from early next year," Cecillia Edebo, managing director, SCA Hygiene Products India, said.

The company will also be forming its own sales & marketing team for pushing its products in the country, she said, adding the firm saw a huge market potential in India with its vast population.

"India is just not a country, but a continent with different kind of people. We have established contacts with 1165700 mothers and babies besides 934 nurses from 1,500 paediatric clinics in various parts of the country," she told a group of visiting Indian reporters here.

The company also plans to initiate interactions with pharmacists in India from next year, she said, adding it has put in place a few doctors for online advice on hygiene besides usage of smartphones for highlighting the significance of its products.

The plant, spread over 30 acres of land near Pune, has been set up at a cost of over Rs.1500.000 Millions, Edebo said. The land has been taken on 99-year lease from the Maharashtra government. The plant will roll out products that will match the quality of products made by the company in Sweden and elsewhere, she added.

It may be recalled that the industrial 'mega project policy' of the state government has been framed to attract more investments and generate employment opportunities. SCA offers baby diapers and other baby care products globally under the brands Libero, Drypers, Pequenin and Treasures.

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 records 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.61.75
UK Pound	1	Rs.100.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		29

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.