MIRA INFORM REPORT

Report Date :

08.10.2014

IDENTIFICATION DETAILS

Name :	GODFREY PHILLIPS INDIA LIMITED
Registered Office :	Chakala, Andheri (East), Mumbai – 400099, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.12.1936
Com. Reg. No.:	11-008587
Capital Investment / Paid-up Capital :	Rs.103.988 Millions
CIN No.: [Company Identification No.]	L16004MH1936PLC008587
IEC No.:	0588034495
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08521C
PAN No.: [Permanent Account No.]	AABCG4768K
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacturing of cigarettes and chewing products and in trading of tobacco products, tea and other retail products.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Aa (74)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 47000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an associate of Philip Morvis Global Brands Inc. and K K Modi Group. It is the second largest player in the Indian Cigarette Industry. It is an old, well established and reputed company having excellent track. The financial and liquidity position seems to be strong, marked by healthy capital structure and cash surplus. The rating also take into consideration the strong brand image, established distribution network and presence in various tobacco related product lines. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of long standing experience of the promoters and a comfortable market position, the subject can be considered good 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 – 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 slow 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “AA +”
Rating Explanation	High degree of safety and low credit risk.
Date	15.10.2013

Rating Agency Name	CRISIL
Rating	Short term rating: “A1 +”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	15.10.2013

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

Management Non Co-operative (91-11-26832155)

LOCATIONS

Registered Office :	Chakala, Andheri (East), Mumbai – 400099, Maharashtra, India
Tel. No.:	91-22-28367306 / 26832155/28367301/08
Fax No.:	91-22-28363761 / 26840775
E-Mail :	sdasgupta-gpi@modi.com rjoshi-gpi@modi.com skgupta-gpi@modi.com
Website :	http://www.godfreyphillips.com
Head / Corporate Office :	49, Community Centre, New Friends Colony, New Delhi – 110065, India
Tel. No.:	91-11-26832155/26836468
Fax No.:	91-11-26840775/26835803
E-Mail :	email-gpi@modi.com
Branch Office :	Located at: · Ahmedabad · Baramati · Chandigarh · Chennai · Dubai · Ghaziabad · Hyderabad · Kolkata · Mumbai · New Delhi · Rabale · Singapore
Leaf Division :	Guntur, Andhra Pradesh, India
Factory 1 :	Ghaziabad Factory International Tobacco Company Post Box No 97, Guldhar, Ghaziabad – 201301 , India
Tel. No.:	91-120-2788235
Fax No.:	91-120-2788247
Factory 2 :	Andheri Plant V. K. K. Menon Road, (Sahar Road), Chakala, Andheri (East), Mumbai – 400099, Maharashtra, India
Factory 3 :	Guldhar Plant International Tobacco Company Limited Delhi-Meerut Road, Guldhar, Ghaziabad – 201001, India
Factory 4 :	Baramati Plant (Chewing Products) Plot No. A-1/1, MIDC Industrial Area, Baramati – 413133, Maharashtra, India
Factory 5 :	Rabale Plant Plot No. 19, MIDC, TTC Industrial Area, Rabale, Navi, Mumbai – 400701, Maharashtra, India
Factory 6 :	Bazpur (Tea Blending and Packaging) Plot No. C-9, Bazpur - 1, Upsidc Industrial Area, Distt-Udham Singh Nagar, (Uttranchal) – 262123, India
Factory 6 :	Ghaziabad B-19, Meerut Road, Site No. 3, Ghaziabad, India
Factory 8 :	Faridabad Industrial Plant No.120, Sector-59, Industrial Estate, Tehsil Ballabgarh, Faridabad, Haryana – 121004, India
Factory 9 :	Bazpur Plot No. C-9, Bazpur - 1, Upsidc Industrial Area, District Udham Singh Nagar, (Uttrakhand) – 262123, India
Factory 10 :	Kolkata (Tea Blending and Packaging-operated by a contractor) Landys + GYR Compound, Diamond Harbour Road, Joka, Kolkata – 700104, West Bengal, India
Factory 11 :	Ongole (Reconstituted Tobacco) Plot No. 289 to 300, Apiic Growth Centre, Gundlapally, Ongole, Prakasam District, Andhra Pradesh – 523001, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. R.A Shah
Designation :	Chairman
Name :	Mr. K. K. Modi
Designation :	Managing Directors
Qualification :	B.Sc., Advanced Management Programme from Harvard Business School, Boston
Name :	Mr. R. Ramamurthy
Designation :	Whole-time Director
Qualification :	B.A., B.L. from Madras University
Experience :	34 years
Name :	Mr. Samir Kumar Modi
Designation :	Executive Director
Name :	Ms. Bina Modi
Designation :	Additional Director
Name :	Mr. Lalit Kumar Modi
Designation :	Executive Director
Name :	Mr. Lalit Bhasin
Designation :	Executive Director
Qualification :	B.A. (Hons.), LL.B., FCIArb
Name :	Mr. Anup N. Kothari
Designation :	Executive Director
Qualification :	B.Arch., F.I.I.A

KEY EXECUTIVES

Name :	Mr. Sanjay Gupta
Designation :	Company Secretary

SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4588	0.04
Bodies Corporate	4412978	42.44
Any Others (Specify)	360276	3.46
Trusts	360276	3.46
Sub Total	4777842	45.95
(2) Foreign
Bodies Corporate	2610095	25.10
Sub Total	2610095	25.10
Total shareholding of Promoter and Promoter Group (A)	7387937	71.05
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	309109	2.97
Financial Institutions / Banks	9487	0.09
Central Government / State Government(s)	6000	0.06
Foreign Institutional Investors	1039003	9.99
Sub Total	1363599	13.11
(2) Non-Institutions
Bodies Corporate	135935	1.31
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1237268	11.90
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	245552	2.36
Any Others (Specify)	28493	0.27
Directors & their Relatives & Friends	3938	0.04
Non Resident Indians	19856	0.19
Trusts	4699	0.05
Sub Total	1647248	15.84
Total Public shareholding (B)	3010847	28.95
Total (A)+(B)	10398784	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	10398784	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of cigarettes and chewing products and in trading of tobacco products, tea and other retail products.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India

· Bank of Baroda

· Bank of India

· Citibank N. A., Connaught Circus, New Delhi

· State Bank of Hyderabad

· State Bank of Travancore

· The Hong Kong and Shanghai Banking Corporation

· Union Bank of India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
Foreign currency term loans from banks	1833.552	2443.050
Less : Current maturities of long term borrowings	(862.848)	(781.776)
	970.704	1661.274
Short Term Borrowings
- Cash credits from banks*	554.243	342.547
Total	1524.947	2003.821

NOTES:

Long Term Borrowings

Details of security and terms of above loans

These loans carry interest ranging between 3.8% to 5.5% per annum and are repayable in half yearly/yearly instalments ranging between 3 to 5 years. Further, these loans are secured by way of exclusive charge over specific plant and machinery.

Short Term Borrowings

* Secured against hypothecation of stocks and book debts and second charge on all movable fixed assets of the Company.

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Internal Auditors :
Name :	Lodha and Company Chartered Accountants
Solicitors :	Crawford Bayley and Company
Subsidiary companies :	· International Tobacco Company Limited · Chase Investments Limited
Subsidiaries of the subsidiary companies :	· Kashyap Metal and Allied Industries Limited · Unique Space Developers Limited · Rajputana Infrastructure Corporate Limited (subsidiary of Kashyap Metal and Allied Industries Limited) · Gopal Krishna Infrastructure & Real Estate Limited (subsidiary of Unique Space Developers Limited)
Associates :	· Philip Morris Global Brands Inc., of which the Company is an associate. · K K Modi Investment & Financial Service Private Limited, of which the Company is an associate. · Success Principles India Limited, an associate of the Company. · IPM India Wholesale Trading Private Limited, an associate of the Company. · KKM Management Centre Private Limited, an associate of the Company
Enterprises over which key management personnel and their relatives are able to exercise significant influence :	· Modicare Limited · Beacon Travels Private Limited · Indofil Industries Limited · Assam Cigarette Company Private Limited · R C Tobacco Private Limited · HMA Udyog Private Limited · Bina Fashion N Food Private Limited · Modicare Foundation · Priyal Hitay Nidhi · Colorbar Cosmetics Private Limited · Gujarmal Modi Science Foundation · Modi Healthcare Placement India Private Limited · Modi Innovative Education Society · International Research Park Laboratories Limited · Rajputana Fertilizers Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
24400000	Equity Shares	Rs. 10/- each	Rs. 244.000 Millions
60000	Preference shares	Rs. 100/- each	Rs. 6.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10398784	Equity Shares	Rs. 10/- each	Rs.103.988 Millions

1. There has been no movement in the equity shares in the current and previous year.

2. The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the Company.

3. Shares held by each shareholder holding more than 5% :

Name of Shareholder	Number of Shares	% holding
Philip Morris Global Brands Inc.	2610095	25.10%
Indo Euro Investment Co. Private Limited*	--	--
K K Modi Investment and Financial Services Private Limited	3039332	29.23%
Good Investment (India) Limited	796044	7.66%
Jupiter India Fund	333672	3.21%
*Since merged with KK Modi Investment and Financial Services Private Limited

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	103.988	103.988	103.988
(b) Reserves & Surplus	11533.003	10313.239	9105.103
(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)	11636.991	10417.227	9209.091
(3) Non-Current Liabilities
(a) long-term borrowings	970.704	1661.274	2318.850
(b) Deferred tax liabilities (Net)	0.000	2.020	1.910
(c) Other long term liabilities	2.040	358.182	298.197
(d) long-term provisions	362.337	38.380	0.000
Total Non-current Liabilities (3)	1335.081	2059.856	2618.957
(4) Current Liabilities
(a) Short term borrowings	554.243	592.547	343.669
(b) Trade payables	1463.671	1574.725	1189.359
(c) Other current liabilities	3472.994	2610.326	2381.411
(d) Short-term provisions	616.485	629.902	626.845
Total Current Liabilities (4)	6107.393	5407.500	4541.284
TOTAL	19079.465	17884.583	16369.332
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6585.324	6932.096	5247.701
(ii) Intangible Assets	69.279	59.075	23.185
(iii) Capital work-in-progress	450.094	152.715	1374.090
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2815.408	1615.008	1605.479
(c) Deferred tax assets (net)	97.262	0.000	75.223
(d) Long-term Loan and Advances	449.125	419.899	422.716
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	10466.492	9178.793	8748.394
(2) Current assets
(a) Current investments	737.500	1570.287	1977.833
(b) Inventories	5845.105	5383.545	3771.573
(c) Trade receivables	1035.335	792.967	749.495
(d) Cash and cash equivalents	232.107	221.073	218.608
(e) Short-term loans and advances	556.111	584.982	769.562
(f) Other current assets	206.815	152.936	133.867
Total Current Assets	8612.973	8705.790	7620.938
TOTAL	19079.465	17884.583	16369.332

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	24821.248	20964.772	19118.028
		Other Income	242.915	306.054	303.338
		TOTAL (A)	25064.163	21270.826	19421.366
Less	EXPENSES
		Cost of materials consumed	5309.671	4755.467	4960.529
		Purchases of traded goods	4470.530	4234.274	2612.659
		Changes in inventories of finished goods, work-in-process and traded goods	177.882	(939.363)	95.458
		Employee benefits expenses	2166.478	2008.143	1625.367
		Other expenses	8886.592	7694.097	6612.177
		Exceptional Items	353.829
		TOTAL (B)	21364.982	17752.618	15906.190
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3699.181	3518.208	3515.176
Less	FINANCIAL EXPENSES (D)		286.883	269.173	316.514
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3412.298	3249.035	3198.662
Less	DEPRECIATION/ AMORTISATION (F)		865.543	880.003	626.313
	PROFIT BEFORE TAX (E-F) (G)		2546.755	2369.032	2572.349
Less	TAX (H)		840.349	674.254	758.722
	PROFIT AFTER TAX (G-H) (I)		1706.406	1694.778	1813.627
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7917.167	6909.031	5798.833
Less	APPROPRIATIONS
		Transfer to General Reserve	200.000	200.000	220.000
		Proposed Dividend	415.951	415.951	415.951
		Corporate Dividend tax	70.691	70.691	67.478
	BALANCE CARRIED TO THE B/S		8936.931	7917.167	6909.031
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on F.O.B. basis	4816.981	3525.383	3118.633
		Others including freight, etc.	97.678	80.471	69.618
	TOTAL EARNINGS		4914.659	3605.854	3188.251
	IMPORTS
		Raw Materials	893.580	430.479	455.186
		Components and spare parts	45.110	23.419	33.438
		Capital Goods	217.193	295.717	1861.868
		Purchases for resale - cigars, etc.	10.777	19.191	7.544
	TOTAL IMPORTS		1166.660	768.806	2358.036
	Earnings Per Share (Rs.)		164.10	162.98	174.41

QUARTERLY RESULTS

(Rs. In Millions)

Particulars	30.06.2014 (Unaudited)
	1^st Quarter
Net Sales	6988.400
Total Expenditure	5551.400
PBIDT (Excluding Other Income)	1437.000
Other Income	64.400
Operating Profit	1501.400
Interest	26.900
Exceptional Items	0.000
PBDT	1474.500
Depreciation	280.800
Profit Before Tax	1193.700
Tax	391.800
Profit After Tax	801.900

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	6.81	7.97	9.34
Net Profit Margin (PBT/Sales)	(%)	10.26	11.30	13.46
Return on Total Assets (PBT/Total Assets}	(%)	16.20	14.70	19.32
Return on Investment (ROI) (PBT/Networth)		0.22	0.23	0.28
Debt Equity Ratio (Total Debt /Networth)		0.13	0.22	0.29
Current Ratio (Current Asset/Current Liability)		1.41	1.61	1.68

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	103.988	103.988	103.988
Reserves & Surplus	9105.103	10313.239	11533.003
Net worth	9209.091	10417.227	11636.991
long-term borrowings	2318.850	1661.274	970.704
Short term borrowings	343.669	592.547	554.243
Total borrowings	2662.519	2253.821	1524.947
Debt/Equity ratio	0.289	0.216	0.131

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	19118.028	20964.772	24821.248
		9.660	18.395

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	19118.028	20964.772	24821.248
Profit	1813.627	1694.778	1706.406
	9.49%	8.08%	6.87%

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	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	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	Yes
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	Yes

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Case Details

Bench:-Bombay

Lodging No.:-

ITXAL/1347/2011

Filing Date:-

20/10/2011

Reg. No.:-

ITXA/2477/2011

Reg. Date:-

22/11/2011

Petitioner:-

THE COMMISSIONER OF INCOME TAX – 8 –

Respondent:-

GODFREY PHILIPS INDIA LIMITED

Petn.Adv.:-

RAVINDRA A. LOKHANDE (0)

District:-

MUMBAI

Bench:-	DIVISION
Status:-	Admitted(Unready)	Category:-	TAX APPEALS
Last Date:-	08/03/2013	Stage:-	FOR ADMISSION – FRESH
Last Coram:-	HON’BLE SHRI JUSTICE J.P. DEVADHAR HON’BLE SHRI JUSTICE M. S. SANKLECHA

Act :-

Income Tax Act, 1961

Under Section:-

260A

UNSECURED LOAN:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Short Term Borrowings
Demand loan from banks	0.000	250.000
Total	0.000	250.000

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC ENVIRONMENT

The year, started with a cautious sentiment and a difficult time for the global economic activity.

However, with things getting under control the business situation improved gradually. Major economic zones saw divergent growth during the year. While the US economy strengthened, Euro Zone saw a turbulent economic phase. On the other hand, developing economies such as Latin America, Middle East and Africa witnessed a sluggish growth.

The domestic economy continued on its challenging trajectory, with growth at decadal low. The domestic industrial sector saw persistent slowdown, despite measures being taken by the government. The currency as well as demand was under pressure, compounded by high inflation and steepening input costs.

With recovery on the anvil and favourable economic dynamics, the domestic environment is slowly changing. Demand is expected to resurge, as fiscal conditions improve and developed economies rebound. However, geopolitical risks in other developing economies have increased and will be important to keep an eye on.

While global growth is projected to improve from 3.3 per cent in 2013-14 to 3.6 per cent, growth in advanced economies is expected to lag the global growth at 2 per cent. Fiscal tightening and accommodative monetary conditions are likely to be the key contributing factors. Growth in the developing economies is projected to be in the 5% range in 2014-15. With geopolitical risks withering down in the developing nations, performance of Subject’s export division is further likely to benefit.

TOBACCO INDUSTRY

Globally, the tobacco industry has grown by around 3 per cent in value terms to USD 783 billion in FY14. The global cigarette volumes have declined by 1 per cent in FY14, whereas the value has grown by 3 percent. Increasing taxes & widening regulations are impeding growth of cigarette volumes globally.

The Indian tobacco industry is estimated to be around USD 13 billion in FY14. Cigarette constitute 61 percent of the total value, followed by Bidi (23 per cent) & Chewing tobacco (16 per cent).

Indian cigarette market has shown a decline of around 3 per cent in volume, impacted by pricing pressure and growing health concerns. However, the price hikes taken by the industry have resulted in a value growth of 14 per cent over the previous year. The 64mm segment, aided by favourable taxation, has grown by two & half times in volume terms as compared to last year. Premiumisation trend has continued with growing Kings Segment (KSFT), which now accounts for more than 15 per cent of the industry’s volumes. The growth in King Size has been driven by Lights/Milds variants due to the perception of reduced harm. However, the Regular Size Filter (RSFT) category, which forms the body of the industry has lost industry’s share from 76.9 per cent in FY13 to 66.3 per cent in FY14. There has been increased up-trading from Premium RSFT to KSFT segment this year, due to reduced price difference. Also, the industry continues to face the challenge of illicit trade. With growing health concerns, consumers are also exploring new generation products such as e-cigarettes, nicotine gums, etc.

Indian leaf tobacco exports were higher as compared to last year, both in volume and value terms.

SEGMENTWISE PERFORMANCE IN 2013-2014

Cigarettes

The domestic cigarette industry had to contend with increased central and state taxes for the second year in succession. Though subject has witnessed decline in volume, it still was able to register a healthy growth of 11.7% in terms of sales income, from Rs. 2,920 crore previous year to Rs. 3,263 crore and hold on its market share, reversing the declining trend of previous years. We have been able to increase volume in the 64mm segment against aggressive competitive moves, but kept a balanced mix of the lower margin 64mm and the higher margin 69mm segments.

Despite the challenging scenario faced by it, Subject is aiming for steady growth through balanced brand portfolio, consumer centric working, quicker response to environmental changes and data-driven decision making process. We are also working on strengthening our main brand franchises by improving imagery on consumer relevant parameters and adopting new research tools & methodologies to test consumer relevant concepts. Multiple cross-functional integrated projects are currently underway towards making our brands consumer centric in the market place by delivering superior product experience and thereby winning consumer confidence.

Tea

Subject’s domestic tea business progressed well on its path of resurgence, posting overall net sales of Rs. 116 crore against Rs. 106 crore i.e. growth of almost 10 per cent over last year. The division focused on capturing the premiumization trend in the domestic market and extended its mainstay, the Supercup brand to develop the franchise and participated in the upper mid-premium segment by launching Supercup Gold and Supercup Premium, continued expanding presence in alternate high-growth channels like modern trade, institutions and home shopping. Further concerted effort helped the team to grow its premium offering Symphony by 12 per cent in the domestic market. With an aim of strengthening our quality focus, Subject implemented the Kaizen and 5S systems at both its factories at Kolkata and Bazpur.

Chewing Products

There was acceleration of gains over the last fiscal and the business grew by 11% to close the year at Rs. 1580.000 Millions compared to Rs. 1420.000 Millions the year earlier. The Company launched ‘Raag’ Pan Masala and ‘Raaga’ Zarda and reaped the gains of this launch in Gujarat and MP.

Subject has invested significant time and money to develop new capabilities and capacities which will help the Company to grow the business. A number of researches and new offers are being done to gain deeper understanding of the market and consumer. Efforts are now being made to build ‘Pan Vilas’ salience and superior imagery to capture more market share, build a compelling solution for the premium mixer, and proliferate ‘Raag’ further in the popular Pan Masala segment.

As per the global taxonomy the Company’s portfolio of chewing products is categorized as ‘Asian styled chewing’ products comprising of consumers from India, Pakistan, Nepal and Bangladesh. Diaspora of this origin, settled across the globe, also demands these products. Subject has started focusing on these consumers and is in the process of making its products available to them. To this end, Subject is exploring partnerships in Nepal and Bangladesh to give its brands a global platform.

Retail

Subject’s foray into retail business through 24x7 convenience stores is making steady progress. Subject is currently operating through 42 stores spread across NCR and includes four new stores opened in Chandigarh. New business models are currently under evaluation with the help of Japanese consultants and we hope to scale greater heights in times to come.

TREASURY OPERATIONS

Subject continues to enjoy the highest rating of ‘CRISIL A1+’ for Short Term Debt Programme, ‘CRISIL AA+/Stable’ for Long Term Loan, ‘CRISIL AA+/Stable’ for Cash Credit Limit and ‘CRISIL A1+’ for Non-fund based Limit. With these ratings in place, Subject is able to raise funds at most competitive terms.

Guided by the policy of safe, liquid and tax efficient returns, the Company has been deploying its long term surplus funds primarily in debt oriented schemes of reputed mutual funds. The Company also continued to park its temporary surpluses in liquid schemes of various mutual funds.

FINANCIAL RESULTS

During the year ended March 31, 2014, subject registered sales turnover of Rs. 41320.000 Millions as against Rs. 35980.000 Millions during corresponding previous financial year, a growth of almost 15%. The profit after tax was marginally higher at Rs. 1706.400 Millions against Rs. 1694.700 Millions last year.

The Union Budget 2014 has yet again increased the excise duty on cigarette which works out to around 24% on weighted average volume base of Subject and this is apart from some State Governments hiking VAT rates. The trend of steep increase in taxation on cigarette over the last several years is likely to continue.

UNAUDITED FINANCIAL RESULTS FOR QUARTER ENDED 30.06.2014

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)
	30.06.2014
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	6832.900
b) Other operating income	155.500
Total income from Operations(net)	6988.400
2.Expenditure
a) Cost of material consumed	1428.600
b) Purchases of stock in trade	1502.500
c) (Increase)/Decrease in stock-in-trade and work-in-progress	(19.900)
d) Increase/(Decrease) in excise duty on finished goods	103.300
e) Employees benefit expenses	578.200
f) Advertising and sales promotion	588.300
e) Depreciation and amortization expenses	280.800
f) Other expenditure	1370.400
Total expenses	5832.200
3. Profit from operations before other income and financial costs	1156.200
4. Other income	64.400
5. Profit from ordinary activities before finance costs	1220.600
6. Finance costs	26.900
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	1193.700
8. Exceptional item	--
9. Profit from ordinary activities before tax Expense:	1193.700
10.Tax expenses	391.800
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	801.900
12.Extraordinary Items (net of tax expense)	--
13.Net Profit / (Loss) for the period (11 -12)	801.900
14.Paid-up equity share capital (Nominal value Rs.10/- per share)	104.000
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year
16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):
(a) Basic and diluted	77.12
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	3010847
- Percentage of shareholding	28.95
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--
Percentage of shares (as a % of total share capital of the company)	--
b) Non Encumbered
Number of shares	7387937
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00
Percentage of shares (as a % of total share capital of the company)	71.05
B. Investor Complaints
Pending at the beginning of the quarter	--
Receiving during the quarter	1
Disposed of during the quarter	1
Remaining unreserved at the end of the quarter	--

UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	Quarter Ended (Unaudited)
	30.06.2014
1. Segment Revenue
Cigarettes and Tobacco Products	6432.400
Tea and Other Retail Products	556.000
Total income from operations (net)	6988.400
2. Segment Results
Cigarettes and Tobacco Products	1253.800
Tea and Other Retail Products	(98.800)
Total	1155.000
Less: Finance Costs	(26.900)
Un-allocable income/expenditure net of un-allocable income/expenditure	65.600
Total Profit Before Tax	1193.700
3. Capital Employed
Cigarettes and Tobacco Products	10051.300
Tea and Other Retail Products	679.500
Total segment capital employed	10730.800
Unallocated capital employed	1666.700
Total capital employed	12397.600

NOTES:

1. The above results are as per clause 41 of the Listing Agreement and have been taken on record by the Board of Directors at its meeting held on August 2, 2014 after being reviewed by the Audit Committee.

2. The Board of Directors of the Company at its meeting held on May 28, 2014 had recommended a dividend of Rs.40 per equity share of Rs. 10 each for the year 2013-14 which will be paid after declaration in the forthcoming annual general meeting to be held on September 23, 2014.

3. In accordance with the accounting policy consistently followed by the Company, exchange loss (net) amounting to Rs. 29 lacs and Rs. 2143 lacs, arising from restatement of foreign currency loan liabilities at the prevailing rates of exchange, has been recognised in the above results for the quarters ended on June 30, 2014 and June 30, 2013 respectively.

4. The exceptional item in the previous year represents compensation paid to unionized staff and workmen attached to the Company’s plant at Andheri Mumbai, pursuant to the voluntary retirement schemes announced by the Company.

5. The Board of Directors of the Company at its meeting held on May 28, 2014 had recommended to split the face value of equity shares of the Company from Rs. 10 to Rs. 2 per share subject to approval of the shareholders in the forthcoming annual general meeting to be held on September 23, 2014.

6. As per the requirements of the Companies Act, 2013, the Company has computed depreciation with reference to the useful life of respective assets specified in and in the manner prescribed in Schedule II to the Act. Accordingly, an amount of Rs. 414 lacs (net of deferred tax) on account of assets whose useful life has already exhausted as on April 01, 2014, has been charged to opening balance of retained earnings and an additional depreciation amounting to Rs. 696 lacs has been charged to the Statement of Profit and Loss for the current quarter based on the residual life of the remaining assets. In relation to the assets added after April 01, 2014, depreciation has been charged as per the provisions of said Schedule II.

7. The Union Budget presented on July 10, 2014 has increased excise duty on cigarettes in the range of 11 to 72 percent which may have bearing on the financial performance of the Company in the remaining part of the year.

8. Figures for the previous periods have been re-classified / re-grouped, wherever necessary, to correspond with the current period’s classification/disclosure.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10342737	29/02/2012	980,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	1, QUEEN'S ROAD CENTRAL,, HONG KONG SPECIAL ADMIN ISTRATIVE REGION, HONG KONG, - 9999999, HONG KONG	B35248517
2	10283323	08/04/2011	920,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	1, QUEENS ROAD CENTRAL, HONGKONG SPECIAL ADMINIST RATIVE REGION, HONGKONG, - 9999999, HONG KONG	B11445806
3	10250028	07/10/2010	356,820,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	1, QUEENS ROAD CENTRAL, HONGKONG SPECIAL ADMINIST RATIVE REGION, HONGKONG, - 9999999, HONG KONG	A97439780
4	10185601	16/11/2009	593,220,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	1, QUEENS ROAD CENTRAL, HONGKONG SPECIAL ADMINIST RATIVE REGION, HONGKONG, - 9999999, HONG KONG	A72959224
5	80067400	13/04/1992	50,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, VIJAYA BUILDING, BARAK HAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	-
6	80057364	14/02/2013 *	635,500,000.00	STATE BANK OF INDIA	JAWAHAR VYAPAR BHAWAN, 11TH & 12TH FLOOR, 1, TOLS TOY MARG, NEW DELHI, DELHI - 110001, INDIA	B70214705

*Date of modification Charges

FIXED ASSETS:

· Land-leasehold

· Land-freehold

· Buildings

· Leasehold building improvements

· Plant and machinery

· Electrical installation and equipments

· Computers and information technology equipments

· Furniture, fixtures and office equipments

· Motor vehicles

· Computer software

PRESS RELEASE:

CIGARETTE STOCKS FALL AMID REPORTS OF TOUGH TOBACCO POLICY

Shares of cigarette companies - ITC, Godfrey Phillips India and VST Industries - fell by as much as 6 per cent amid media reports that the government may tighten norms to put check on smoking.

Stocks of Godfrey Phillips slumped 6.09 per cent to Rs 2,990, while ITC was down by 1.85 per cent to Rs 351.05 and VST Industries lost 3.58 per cent to Rs 1,625.05 on the BSE.

According to reports, the government is considering a proposal to ban sale of loose cigarettes.

The health ministry has also proposed to raise age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognisable offence, it said.

In the broader market, the BSE benchmark Sensex ended at 27,057.41, down 207.91 points.

BUDGET 2014: CIGARETTE MAKERS URGE GOVERNMENT TO NOT INCREASE EXCISE DUTY

NEW DELHI: Worried by falling stock prices and plunging sales, cigarette makers are lobbying hard to prevent the government from hiking excise duty for the third straight year.

Industry body, The Tobacco Institute of India in its budget submission to the finance ministry has requested the government to maintain the current duty on cigarettes and reduce duty on the smaller size sub-65 mm length filter to Rs 200 per thousand sticks from Rs 669 per thousand cigarettes to allow the industry to fight against the proliferating illegal tax-evaded cigarettes and counterfeits.

The centre had hiked excise duty on cigarettes by 22% in 2012-13 and 18% last fiscal with several state governments too hiking the VAT rate. This has triggered 40-55% hike in cigarette prices in phases over the last two years which, as per The Tobacco Institute, has taken its toll on the legal cigarette industry whose sales volume dropped by 9% last fiscal.

There is wide speculation that the government may further increase excise duty on cigarettes in the budget next month. Prime Minister Narendra Modi last month tweeted about reducing tobacco consumption in India.

The union health minister too is championing a hike on excise duties of tobacco products to reduce consumption and has urged finance ministry to increase proportion of tax on cigarettes as a percentage of their retail price from about 45% to over 60%.

These developments have caused share prices of cigarette makers to fall. Share price of market leader ITC fell from Rs 345 a month back to Rs 319.85 at the Bombay Stock Exchange last Friday.

Godfrey Phillips India share price too fell from Rs 3362 a month back to Rs 2805.25 on Friday's closing, while VST Industries share price fell last month from Rs 1,838.45 to Rs 1,766.85.

ITC Ltd divisional chief executive (tobacco division) Sanjiv Puri said India is one of the few countries where domestic cigarette brands are more popular than global brands which are, however, getting weakened by illegal and contraband cigarettes.

"Legal cigarettes comprise only 12% of tobacco consumed down from 21% three decades back, but pay 85 % of tobacco taxes. However, tobacco consumed in other forms like chewing have grown by 59 % in the same period," Puri said.

As per a recent study by Edelweiss Research, a stick of ITC's Navy Cut is currently selling at Rs 6.9 as per compared to Rs 4.9 in March'13. Price per stick of Gold Flake Kings and Classic have gone up from Rs 5.8 in March'13 to Rs 8.5 now.

The companies claims hiking taxes just on cigarettes does not reduce overall tobacco consumption in India with consumers shifting to cheaper alternatives such as bidis and chewing tobacco.

The cigarette makers have in last two years forayed into smaller stick size of less than 65 mm in length which enjoys lower duty. These are sold at Rs 2 per stick as compared to illegal cigarettes at Re 1 per stick.

The Tobacco Institute estimates the sub-65 mm cigarette has grown more than three times last fiscal accounting for 16% of the total industry volume as compared to 4% in 12-13. Godfrey Phillips India COO (domestic) Nita Kapoor said the mini filter segment has helped the legitimate industry to partially counter the illegal trade.

"Without this segment, tax-evaded cigarettes would have further exploded in volume," she said.

The Tobacco Institute said the escalating tax burden on cigarettes has boosted the illegal trade which now accounts for 19% of the cigarette industry resulting in a revenue loss of more than Rs 6,000 crore to the national exchequer, said director Syed M Ahmad.

The illegal trade was 17% of the total market two years back. The body has also argued that this sharp increase in taxes on cigarettes has not increased government's excise collections at the same pace.

Excise collections on cigarettes grew by 2% last fiscal as compared to 10% growth since 2007-08 when duty on cigarettes was hiked by 12%.

GODFREY PHILLIPS INDIA, DS GROUP IN LEGAL SPAT

NEW DELHI: Godfrey Phillips India (GPI), the country's second largest cigarette-maker, is embroiled in a legal spat with DS Group, which makes Pass Pass mouth freshener, over slogans in the ads for chewing tobacco brands.

In April, GPI dragged DS to Delhi High Court alleging that DS had copied the advertising slogan for one of its brands. The brand in question is DS group-owned chewing tobacco Tulsi saada, for which it has been using the slogan 'swad badi cheez hai'. GPI has alleged that DS has infringed on the tagline of its own chewing tobacco brand Pan Vilaas that has been using the slogan 'shauq badi cheez hai' since 2010.

"The judge has declined to grant a stay against which we are now in the process of filing an appeal. The suit is sub-judice," Harmanjit Singh, GM - corporate affairs, GPI said. Anuj Gupta, co-founding partner at ANM Global, the law firm that represented DS Foods, said: "The court order says slogans cannot have a copyright... so the ads for Tulsi saada are continuing with the slogan in question."

GPI had said in its appeal to the court that the manufacturing, marketing, selling of DS group's Tulsi saada pan masala using the slogan 'swad badi cheez hai' results in an 'act of infringement of copyright, passing off, unfair competition and dilution'.

CIGARETTE STOCKS: ITC, GODFREY PHILLIPS INDIA SHARES FALL PLUNGE ON TOUGH TOBACCO POLICY REPORTS

Shares of cigarette companies - ITC Ltd, Godfrey Phillips India and VST Industries - fell by as much as 6 per cent amid media reports that the government may tighten norms to put check on smoking.

Stocks of Godfrey Phillips slumped 6.09 per cent to Rs 2,990, while ITC was down by 1.85 per cent to Rs 351.05 and VST Industries lost 3.58 per cent to Rs 1,625.05 on the BSE.

According to reports, the government is considering a proposal to ban sale of loose cigarettes.

The health ministry has also proposed to raise age limit for consumption and increasing the fine for smoking in public spaces to Rs 20,000 from Rs 200, apart from making this a cognisable offence, it said.

In the broader market, the BSE benchmark Sensex ended at 27,057.41, down 207.91 points.

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.61.36
UK Pound	1	Rs.98.71
Euro	1	Rs.77.47

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		74

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.