MIRA INFORM REPORT

Report Date :

14.10.2014

IDENTIFICATION DETAILS

Name :	NESTLE INDIA LIMITED (w.e.f.24.03.1989)
Formerly Known As :	FOOD SPECIALITIES LIMITED
Registered Office :	M-5A, Connaught Circus , New Delhi- 110001,
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	28.03.1959
Com. Reg. No.:	55-003786
Capital Investment / Paid-up Capital :	Rs.964.157 Millions
CIN No.: [Company Identification No.]	L15202DL1959PLC003786
TAN No.: [Tax Deduction & Collection Account No.]	DELN0507C
PAN No.: [Permanent Account No.]	AAACN0757G
Legal Form :	A Public Limited Liability company. The company’s shares are listed on the Stock Exchange
Line of Business :	Subject is engaged in Manufacture of Milk Products, Soluble Beverage Powder, Soybean Based Products, Surplus Fat, Other Foods -Own Manufacture and Outside Manufacture.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Aa (77)

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 94750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company was promoted by Nestle S.A Switzerland and sells over 30 branded products including coffee, tea, milk products, snacks dressing, soups, noodles, chocolates etc. Subject is a well-established and a reputed multinational company having good track. Financial positions of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term loan= “AAA”
Rating Explanation	High degree of safety and lowest credit risk.
Date	August 13, 2014
Rating Agency Name	CRISIL
Rating	Short term debt= “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	August 13, 2014

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 (91-11-23329507)

LOCATIONS

Registered Office :	M-5A Connaught Circus , New Delhi- 110001, Delhi, India
Tel. No.:	91-11-23329507 / 23320379 / 23712741 / 2332 9891/23418891
Fax No.:	91-11-23329297 / 23314812 / 23722756 / 2372 5130/23415130
E-Mail :	investor@in.nestle.com cosumer.service@in.nestle.com investor@in.nestle.com careers@in.nestle.com communication@in.nestle.com export.enquiry@in.nestle.com
Website :	www.nestle.in
Head Office :	Nestle House, Jacaranda Marg ‘M’ Block, DLF City Phase II, Gurgaon – 122 002, Haryana, India
Tel No.:	91-124-2389300
Fax No.	91-124-2389399
Factory :	Village Maulinguem (North), Bicholim Taluka – 403 504, Goa, INDIA Plot No. 294-297, Usgao Industrial Area, Ponda – 403 406, Goa, INDIA Unit I & II - Patti Kalyana, Kiwana Road, Samalkha - 132 101 Dist. Panipat, (Haryana) India Industrial Area, Tahliwal, District – Una – 174 301 (Himachal Pradesh) India Ludhiana-Ferozepur Road, Near Kingwah Canal, Moga – 142 001, Dist. Moga, Punjab, INDIA Industrial Area, Nanjangud – 571 301, Mysore District, Karnataka, INDIA P. O. Cherambadi – 643 205, Dist. Nilgiris, Tamilnadu, INDA Plot No. 1, Sector No. - IA, Integrated Industrial Estate, SIDCUL, Pantnagar - 263 145, District Udhamsingh Nagar (Uttarakhand), INDIA
Branches :	Located at v Tamilnadu v West Bengal v Maharashtra v New Delhi

DIRECTORS

AS ON: 31.12.2013

Name :	Mr. Antonio Helio Waszyk
Designation :	Chairman and Managing Director
DIN No.:	02730946
Name :	Mr. Shobinder Duggal
Designation :	Director - Finance and Control
DIN No.:	00039580
Name :	Mr. Michael William Oliver Garrett
Designation :	Non-Executive Director
DIN No.:	00051904
Name :	Mr. Ravinder Narain
Designation :	Non-Executive and Independent Director
DIN No.:	00059197
Name :	Mr. Etienne André Marie Benet
Designation :	Managing Director
DIN No.:	06702574
Name :	Dr. Swati A. Piramal
Designation :	Non-Executive Director
DIN No.:	00067125
Name :	Mr. Ashok Kumar Mahindra
Designation :	Non-Executive Director
DIN No.:	00916746
Name :	Mr. Aristides Protonotarios
Designation :	Director – Technical
DIN No.:	06546858

KEY EXECUTIVES

Audit Committee :	Ashok Kumar Mahindra - Chairman Mr. Michael William Oliver Garrett - Member Ravinder Narain - Member
Corporate Governance and Social Responsibility Committee :	Antonio Helio Waszyk - Chairman Mr. Michael William Oliver Garrett - Member Ravinder Narain - Member Swati Ajay Piramal - Member
Nomination and Remuneration Committee :	Mr. Michael William Oliver Garrett - Chairmen Ashok Kumar Mahindra w- Member Ravinder Narain - Member
Management Committee :	Etienne André Marie Benet – Managing Director Aristides Protonotarios – Technical B. Kannan – Channel Category Geography Sales Development B. Murli – Legal & Company Secretary Binu Jacob – Nutrition Biplab Baksi – Human Resources Chandrasekar Radhakrishnan – Communications Hari Nariani – Globe and Market NCE Luca Fichera – Supply Chain Mayur Bhargava – Chocolates and Confectionery Nayla Sioufi – Coffee and Beverages Rajkamal Sharma – Exports Ravi Ramchandran – Sales Sanjay Khajuria – Corporate Affairs Shivani Hegde – Foods Shobinder Duggal – Finance and Control Zander Taningco – Nestlé Professional

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.06.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	60515079	62.76
Sub Total	60515079	62.76
Total shareholding of Promoter and Promoter Group (A)	60515079	62.76
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	497791	0.52
Financial Institutions / Banks	119948	0.12
Central Government / State Government(s)	39045	0.04
Insurance Companies	4209380	4.37
Foreign Institutional Investors	14003998	14.52
Sub Total	18870162	19.57
(2) Non-Institutions
Bodies Corporate	2206799	2.29
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	9366576	9.71
Individual shareholders holding nominal share capital in excess of Rs. Rs. 0.100 Million	4941841	5.13
Qualified Foreign Investor	210	0.00
Any Others (Specify)	515049	0.53
Non Resident Indians	498350	0.52
Foreign Nationals	4180	0.00
Overseas Corporate Bodies	500	0.00
Trusts	12019	0.01
Sub Total	17030475	17.66
Total Public shareholding (B)	35900637	37.24
Total (A)+(B)	96415716	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)	96415716	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Manufacture of Milk Products, Soluble Beverage Powder, Soyabean Based Products, Surplus Fat, Other Foods -Own Manufacture and Outside Manufacture.

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

• Axis Bank Limited
• Bank of America N.A.
• Bank of Tokyo-Mitsubishi UFJ
• Citibank N.A.
• Deutsche Bank AG
• HDFC Bank Limited
• ICICI Bank Limited
• JP Morgan Chase Bank N.A.
• Punjab National Bank
• Standard Chartered Bank
• State Bank of Hyderabad

Facilities :

Secured Loan	As on 31.12.2013 (Rs. In Millions)	As on 31.12.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans from banks
Bank overdraft	0.100	2.400
Total	0.100	2.400

Note:

The Company’s borrowing facilities, comprising fund based and non-fund based limits from various bankers, are secured by way of a first pari passu charge on all movable assets (excluding plant and machinery), finished goods (including stock-in-trade), work in progress, raw materials and book debts.

Banking Relations :	--
Auditors :
Name :	A F Ferguson and Company Chartered Accountants
Address :	9 Scindia House, Kasturba Gandhi Marg, New Delhi- 110001, India
Tel No.:	91-11-23315884
Fax No.:	91-11-23314561
E-mail :	affdelhi@bol.net.in
Holding Company :	v Nestle S A v Maggi Enterprises Limited
Fellow subsidiaries :	Al Manhal Water Factory Company Limited Nestlé Nigeria Plc Marcas Nestlé SA de CV Nestlé Operational Services Worldwide SA Nestec S.A. Nestlé Österreich GmbH Nestec York Limited Nestlé Panama S.A. Nestlé (China) Limited Nestlé Pakistan Limited Nestlé (Thai) Limited Nestlé Philippines, Inc. Nestlé Asean (Malaysia) Sdn Bhd Nestlé Polska S.A. Nestlé Australia Limited Nestlé Products Sdn Bhd Nestlé Bangladesh Limited Nestlé Qingdao Limited Nestlé Brasil Limiteda Nestlé Quality Assurance Center Nestlé Business Services AOA, Inc. Nestlé R&D Center (Private) Limited Nestlé Canada Inc Nestlé Regional Service Centre (Malaysia) Sdn Bhd Nestlé Capital Advisers S.A. Nestlé R&D Center Inc Nestlé Central And West Africa Nestlé R&D Centre India Private Limited Nestlé Centroamerica, S.A. Nestlé Romania SRL Nestlé Cesko s.r.o. Nestlé Rossiya LLC Nestlé Chile SA Nestlé Shanghai Limited Nestlé Danmark A/S Nestlé Shuangcheng Limited Nestlé Deutschland AG Nestlé Singapore (Private) Limited Nestlé Dongguan Limited Nestlé South Africa Pty Limited Nestlé Dubai Manufacturing LLC Nestlé Suisse S.A. Nestlé Egypt S.A.E. Nestlé Sverige AB Nestlé Equatorial African Region Nestlé Syria Limited Nestlé Espana, S.A. Nestlé Taiwan Limited Nestlé Food Kazakhstan LLP Nestlé Tianjin Limited Nestlé France S.A.S. Nestlé Turkiye Gida Sanayi A.S. Nestlé Hong Kong Limited Nestlé UK Limited Nestlé Hulunbeir Limited Nestlé USA Inc Nestlé Hungaria Kft. Nestlé Vietnam Limited Nestlé International Travel Retail Nestlé Waters Management & Technology Nestlé Italiana S.p.A. Nestlé Waters North America Inc Nestlé Japan Limited Nestlé Zimbabwe (Private) Limited Nestlé Kenya Limited Nestlé’s Products (Mauritius) Limited Nestlé Korea Limited Nestrade S.A. Nestlé Kuban LLC Osem UK Limited Nestlé Lanka PLC PT Nestlé Indonesia Nestlé Manufacturing (Malaysia) Sdn Bhd Quality Coffee Products Limited Nestlé Maroc S.A. San Pellegrino S.p.A. Nestlé México S.A. de C.V. Servcom S.A. Nestlé Middle East FZE Société des Produits Nestlé S.A. Nestlé Nederland B.V. Wyeth Nutritional (China) Company, Limited Nestlé New Zealand Limited Wyeth Nutritionals (Singapore) Private Limited

CAPITAL STRUCTURE

As on 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Share	Rs.10/- Each	Rs. 1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96415716	Equity Share	Rs.10/- Each	Rs. 964.157 Millions

(a) Reconciliation of shares and amount outstanding at the beginning and at the end of the year

No. of Shares	Type	Value	Amount
96415716	Equity Share	Rs.10/- Each	Rs. 964.157 Millions

(b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares with face value of Rs. 10 each, ranking pari passu.

(c) Equity shares held by holding companies

Particular	No. of Shares
Nestlé S.A.	33,051,399
Maggi Enterprises Limited	27,463,680

d) Shareholders holding more than 5% of equity shares

Particular	No. of Shares	% Holding
Nestlé S.A.	33,051,399	34.28
Maggi Enterprises Limited	27,463,680	28.48

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	964.200	964.200
(b) Reserves & Surplus	22723.300	17019.900
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	23687.500	17984.100
(3) Non-Current Liabilities
(a) long-term borrowings	11894.800	10499.500
(b) Deferred tax liabilities (Net)	2154.700	1620.800
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	11933.900	10147.500
Total Non-current Liabilities (3)	25983.400	22267.800
(4) Current Liabilities
(a) Short term borrowings	0.100	2.400
(b) Trade payables	6330.400	5394.000
(c) Other current liabilities	5002.500	5580.300
(d) Short-term provisions	2138.800	410.600
Total Current Liabilities (4)	13471.800	11387.300
TOTAL	63142.700	51639.200
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	33693.100	32042.700
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	2947.100	3440.800
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2241.200	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1239.400	1254.500
(e) Other Non-current assets	4.700	0.000
Total Non-Current Assets	40125.500	36738.000
(2) Current assets
(a) Current investments	6269.600	3648.600
(b) Inventories	7359.300	7455.800
(c) Trade receivables	842.700	875.700
(d) Cash and cash equivalents	7,493.600	2,369.600
(e) Short-term loans and advances	1013.600	541.500
(f) Other current assets	38.400	10.000
Total Current Assets	23017.200	14901.200
TOTAL	63142.700	51639.200

SOURCES OF FUNDS		31.12.2011
SHAREHOLDERS FUNDS
1] Share Capital		964.157
2] Share Application Money		0.000
3] Reserves & Surplus		11775.355
4] (Accumulated Losses)		0.000
NETWORTH		12739.512
LOAN FUNDS
1] Secured Loans		8.402
2] Unsecured Loans		9700.320
TOTAL BORROWING		9708.722
DEFERRED TAX LIABILITIES		434.980
TOTAL		22883.214
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15757.522
Capital work-in-progress		14186.385
INVESTMENT		1343.655
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7340.385
	Sundry Debtors	1154.245
	Cash & Bank Balances	2272.097
	Other Current Assets	0.000
	Loans & Advances	1963.535
Total Current Assets		12730.262
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9978.737
	Other Current Liabilities	117.539
	Provisions	11038.334
Total Current Liabilities		21134.610
Net Current Assets		(8404.348)
MISCELLANEOUS EXPENSES		0.000
TOTAL		22883.214

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2013	31.12.2012	31.12.2011
	SALES
		Income	91010.500	83345.300	74908.209
		Other Income	830.900	310.300	508.905
		TOTAL (A)	91841.400	83655.600	75417.114
Less	EXPENSES
		Material Consumed and Purchase of goods	40170.300	38684.000	36376.565
		Manufacturing and other Expenses	22176.300	20367.400	23486.874
		Employees benefits expense	7415.000	6633.800	0.000
		Adjustment due to Increase/ Decrease in finished goods	1053.200	(920.200)	(482.867)
		Impairment loss / Gain on fixed Assets	99.400	68.500	103.867
		Net provision for contingencies (others)	207.400	-81.500	0.000
		Net provision for contingencies (from operations)	413.100	339.900	469.037
		Exceptional Items	(138.100)	0.000	0.000
		TOTAL (B)	71396.600	65091.900	59953.476
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20444.800	18563.700	15463.638
Less	FINANCIAL EXPENSES (D)		365.100	266.000	51.085
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20079.700	18297.700	15412.553
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3299.500	2771.500	1533.310
	PROFIT BEFORE TAX (E-F) (G)		16780.200	15526.200	13879.243
Less	TAX (I)		5608.900	4846.900	4263.773
	PROFIT AFTER TAX (G-I) (J)		11171.300	10679.300	9615.470
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10745.500	6568.900	3345.027
Less	APPROPRIATIONS
		Transfer to General Reserve	1117.100	1067.900	961.547
		Interim Dividend	3471.000	4676.200	3470.966
		Final Proposed	1205.200	0.000	1205.196
		Corporate Dividend Tax	794.700	758.600	753.935
	BALANCE CARRIED TO THE B/S		15328.800	10745.500	6568.853
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4867.200	2920.000	3091.644
		Commission Earnings	0.000	0.000	810.207
		Other Earnings	0.000	0.000	5.568
	TOTAL EARNINGS		4867.200	2920.000	3907.419
	IMPORTS
		Raw Materials	2994.400	2491.100	2508.372
		Stores & Spares	149.800	120.400	90.509
		Capital Goods	698.600	1465.800	7206.353
		Others	302.100	273.900	240.393
	TOTAL IMPORTS		4144.900	4351.200	10045.627
	Earnings Per Share (Rs.)		115.87	110.76	99.73

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
PAT / Total Income	(%)	12.16	12.77	12.75
Net Profit Margin (PBT/Sales)	(%)	18.44	18.63	18.53
Return on Total Assets (PBT/Total Assets}	(%)	28.95	32.21	48.72
Return on Investment (ROI) (PBT/Networth)		0.71	0.86	1.09
Debt Equity Ratio (Total Liability/Networth)		0.50	0.58	2.42
Current Ratio (Current Asset/Current Liability)		1.71	1.31	0.60

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2012	31.12.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	964.200	964.200
Reserves & Surplus	17019.900	22723.300
Net worth	17984.100	23687.500
long-term borrowings	10499.500	11894.800
Short term borrowings	2.400	0.100
Total borrowings	10501.900	11894.900
Debt/Equity ratio	0.584	0.502

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	74908.209	83345.300	91010.500
		11.263	9.197

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	74908.209	83345.300	91010.500
Profit	9615.470	10679.300	11171.300
	12.84%	12.81%	12.27%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNECURED LOAN

Particular	As on 31.12.2013 (Rs. In Millions)	As on 31.12.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term loan from holding company
- External Commercial Borrowings (ECB)	11871.400	10499.500
Deferred VAT liabilities	23.400	0.000
Total	11894.800	10499.500

Rate of interest and terms of repayment	Maturity Profile of Term Loan
	2016	2017
Interest rate is the USD 5 years Interest Rate Swap (IRS) plus an agreed spread payable semi - annually. The loan repayment is upon completion of 5 years from the date of drawdown.	8,408.900	3,462.500

CONTINGENT LIABILITIES.

Claims against the Company not acknowledged as debts: Indirect Taxes 127.600 Millions.

CORPORATE GOVERNANCE:

In compliance with the requirements of Clause 49 of the Listing Agreement with the Stock Exchange, a separate report on Corporate Governance along with Auditors certificate on its compliance is attached as Annexure-1 and forms integral part of this Report.

AWARDS AND RECOGNITIONS:

The Company continues to be a highly trusted Company for the quality of its products, innovation and renovation of products that are based on strong consumer insights and ability to engage with consumers across the country. During the year the Company received many honors which reflect its successful strategies. Some of the key awards and recognitions:

• MINT – IFC Award for Food and Beverages category. This award by the Institute of Competitiveness recognizes the strategy and business acumen of corporates in India.
• Coffee Board Awards: BRONZE for overall export of instant coffee from India, SILVER for export of coffee to Middle East and North Africa Region, and BRONZE for export of coffee to Russia and CIS countries.

• ET Brand Equity survey 2013: MAGGI ranked amongst TOP 10 Most Trusted Brands and No.1 Food Brand in India. NESTLÉ MUNCH, KITKAT and NESTLÉ Milk Chocolate ranked amongst the Top 5 brands in Chocolates/Confectionary and NESCAFÉ amongst the Top 5 brands in Hot Beverages.

• EFFIES Awards: NESCAFÉ Classic awarded BRONZE in the Integrated Advertising Campaigns category, NESCAFÉ SUNRISE Strong awarded SILVER in the Regional Category, MAGGI awarded SILVER in the Consumer Products category and BRONZE among Integrated Advertising Campaigns • Global SMARTIES awards: NESCAFÉ campaign received SILVER (messaging category) and BRONZE (use of Mobile Social Media category).

• India SMARTIES awards: NESCAFÉ received GOLD (messaging category), MAGGI and NESTLÉ MUNCH mobile marketing campaigns won a BRONZE each (In-App Advertising category and in Brand awareness category)

• Asia Pacific SMARTIES awards: NESCAFÉ received BRONZE in Relationship Building category.

 
INDEX OF CHARGES:
 

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80002665	20/12/2012 *	4,000,000,000.00	CITI BANK N.A.	JEEVAN VIHAR, 3 SANSAD MARG,, NEW DELHI, DELHI - 1  10001, INDIA	B65047227

 
* Date of charge modification
 

STATEMENT OF UNAUDITED RESULT FOR THE QUARTER AND HALF YEAR ENDED 30TH JUNE 2014

(Rs. In Millions)

Particulars	3 Months Ended		6 Months Ended
	30.06.2014	31.03.2014	30.06.2014
	Unaudited	Unaudited	Unaudited
Part - I
1. Income from Operations
(a) Net Sales/Income from Operations (Net of Excise Duty)	24189.100	23134.600	47323.700
(b) Other Operating Income	130.600	80.500	211.100
Total Income from Operation	24319.700	23215.100	47534.800
2. Expenses
Cost of materials consumed	11234.700	11501.200	22735.900
Purchases of Stock in Trade	328.500	301.600	630.100
Changes in inventories of finished goods, work-in-progress and stock-in-trade	(54.300)	(1096.200)	(1150.500)
Employee benefits expense	1918.500	1674.800	3593.300
Depreciation and amortization expense	841.800	839.200	1681.000
Other expenses	5726.000	5732.400	11458.400
Impairment of loss on fixed assets	---	--	--
Net provision for contingencies	93.900	89.200	183.100
Total Expenses	20089.100	19042.200	39131.300
3. Profit/(Loss) from Operations before Other Income, finance cost* and Exceptional Items (1-2)	4230.600	4172.900	8403.500
4. Other income	231.200	309.300	540.500
6. Profit/(Loss) from ordinary activities before finance costs and exceptional Items (3+4)	4461.800	4482.200	8944.000
6. 1. Finance Costs	37.700	102.600	140.300
2.Net provision for contingencies	--	249.500	249.500
7. Profit/(Loss) from ordinary activities after finance costs but before exceptional items	4260.300	3965.400	8225.700
8. Exceptional Hems	--	-	--
9. Profit/(Loss) from ordinary activities before tax	4260.300	3965.400	8225.700
10. Tax Expense	1381.700	1373.800	2755.500
11. Net Profit/(Loss) for the period	2878.600	2591.600	5470.200
12. Minority Interest	--	---	---
13. Net Profit/(Loss) after taxes, minority Interest and Share of Profit/(Loss)	2878.600	2591.600	5470.200
14. Paid-up Equity Share Capital (Pace Value per share : Rs.1/-	964.200	964.200	964.200
15. Reserves excluding Revolution Reserve as per balance sheet of previous accounting year
16. Earning* per share of Rs.1/- each (Not Annualised):
Basic and Diluted EPS before Extraordinary items	29.86	26.88	56.74
Basic and Diluted EPS after Extraordinary items	29.86	26.88	56.74
A. PARTICULARS OF SHAREHOLDING
Public shareholding
Number of shares	35900637	35900637	35900637
Percentage of Shareholding	37.24	37.24	37.24
Promoters and Promoter Group Shareholding
Pledged /encumbered
Number of shares	Nil	Nil	Nil
Percentage of shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
Percentage of shares (as a % of the total share capital of the company)	Nil	Nil	Nil
Non-encumbered
Number of shares	60515079	60515079	60515079
Percentage of shares (as a % of the total shareholding of promoter and promoter group]	100.00	100.00	100.00
Percentage of shares (as a % of the total share capital of the company)	62.76	62.76	62.76

B	INVESTOR COMPLAINTS :	3 months Ended 30.06.2014
	Pending at the beginning of the quarter	0
	Received during the quarter	3
	Disposed of during the quarter	3
	Remaining unresolved at the end of the quarter	0

STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	30.06.2014 Unaudited
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	964.200
(b) Reserves & Surplus	26787.000
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	277751.200
(3) Non-Current Liabilities
(a) long-term borrowings	120.900
(b) Deferred tax liabilities (Net)	2207.100
(c) Other long term liabilities	0.000
(d) long-term provisions	13001.900
Total Non-current Liabilities (3)	15329.900
(4) Current Liabilities
(a) Short term borrowings	6.900
(b) Trade payables	6330.400
(c) Other current liabilities	5537.000
(d) Short-term provisions	1560.400
Total Current Liabilities (4)	13434.700
TOTAL	56515.800
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	35043.700
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	0.000
(iv) Intangible assets under development	0.000
(b) Non-current Investments	2818.700
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	1309.500
(e) Other Non-current assets	0.000
Total Non-Current Assets	39171.900
(2) Current assets
(a) Current investments	2434.700
(b) Inventories	10371.800
(c) Trade receivables	1386.200
(d) Cash and cash equivalents	2267.900
(e) Short-term loans and advances	781.700
(f) Other current assets	101.600
Total Current Assets	17343.900
TOTAL	56515.800

NOTE :

1. "Net Sales" have increased by 9.3% "Net Domestic Sales" grew by 9.7% mainly from better realisations while "Export Sales" grew by 4.1%. Third party exports grew by 35.8% while export to affiliates declined by 7.1% (mainly to Russia).

2. "Other Operating Income" has increased mainly due to higher realisation of export incentives.

3. The cost of materials consumed [2(a) +2(b) +2(c)] has increased mainly due to record high cost of milk and its derivatives in India which was even higher than international markets.

4. Total cost of the employee benefit plans continue to be fully charged to the statement of profit and loss. While the amounts relating to current service cost and actuarial gains/ losses continue to be included in "Employee Benefits Expense"; the increase in cost of employee benefit plans, due to passage of time (net of return on plan assets) is presented under "Employee Benefits Expense due to passage of time" in line with the Accounting Standard 15 on "Employee Benefits".

5. Net Provision for Contingencies is mainly for matters related to litigation / dispute, in accordance with the Accounting Standard AS 29 on "Provisions, Contingent Liabilities and Contingent Assets".

6. "Other Income" has increased largely due to higher average liquidities and yields.

7. "Finance Costs" have reduced mainly due to lower average outstanding of External Commercial Borrowing (ECB) {refer note 8(a) below).

8. Statement of Assets and Liabilities as at June 30, 2014 (comparison with the position as at June 30, 2013)

a. "Long-term borrowings" have decreased mainly due to repayment of ECB. Out of the total ECB of USD 192 millions, USD 157 millions was paid before June 30, 2014 and the balance USD 35 millions was paid in July 2014.

b. "Long-term provisions" have increased due to provisions for employee retirement benefits and contingencies.

c. "Other current liabilities" have increased mainly due to reclassification of the outstanding ECB of USD 35 millions (Rs. 2,103.7 millions) which has since been repaid in July 2014.

d. "Non-current investments" increased mainly due to investments in long term tax free bonds.

e. "Inventories" have increased due to a strategic built-up of certain key raw materials.

f. "Cash & Bank balances" and "Current Investments" have decreased mainly due to repayment of ECB and Investments in long term tax free bonds.

9. As the Company's business activity falls within a single primary business segment, namely Food, the disclosure requirements of Clause 41 of the Listing Agreement in terms of Accounting Standard AS 17 on "Segment Reporting" are not applicable.

10. Previous period's figures have been regrouped / reclassified wherever necessary, to make them comparable with the current period.

11. The Limited Review of the un-audited results for the current period, as required under clause 41 of the listing Agreement, has been completed by the Statutory Auditors and their report is being forwarded to the Stock Exchange.

FIXED ASSETS

v Freehold Land

v Leasehold Land

v Building

v Railway Siding

v Plant and Machinery

v Furniture and Fixture

v Information Technology

v Equipment’s

v Vehicles

PRESS RESEASE

NESTLÉ INDIA REVIEWS THE GENERAL LICENCE AGREEMENT - INDEPENDENT DIRECTORS APPRECIATE THE GOVERNANCE PROCESS NESTLÉ GURGAON,

Mar 22, 2013

Nestle House, Gurgaon 22nd March, 2013: Nestle India’s Board of Directors today, with only Independent Directors voting and the Executive Directors recusing, approved a staggered increase in the royalty rate @ 0.20% per annum over the next 5 years effective January 1st, 2014.  This royalty is paid on third party sales and is net of tax. 

The Independent Directors appreciated the high emphasis on corporate governance keeping in view the elaborate review process.

The Company has a General License Agreement (GLA) that allows it access to Nestle Group’s intellectual property rights including global portfolio of brands, proprietary science and technology including over 1300 patents, extensive research and development capabilities and expertise on best practices.

The GLA includes access to over 6,000 brands such as NESTLE, MAGGI and NESCAFE and technologies developed by the global network of 32 research  and development  centres, including the one recently inaugurated at Manesar, Haryana which will further assist in localization of global concepts.  Nestle India’s recent capacity investments of around INR 3000 crores have benefitted from this.

Nestle SA had requested two years ago for a review of the two decades old royalty rates and subsequently substantiated the same by a study conducted by Mckinsey and Co. This study was subjected to a fairness review by two Indian firms i.e. M/s Bansi S. Mehta & Co. and KPMG (Registered) who independently used different valuation methods and recommended ranges of royalty rates which were similar to that of Mckinsey & Co.

The existing GLA, the proposal from Nestle SA and the studies performed by the independent firms were examined by the Corporate Governance Committee, majority of its members being Independent Directors.

The Board of Directors of Nestle India negotiated and Nestle S.A. accepted the increase in royalty from 3.5% to 4.5 % of sales in a staggered manner by making an increase of   0.20% per annum over the next five years effective January 1st, 2014.  This increase is based on the lower limit of the ranges established by the two Indian firms and is in line with the erstwhile guidelines of the Government of India. It is also comparable to the royalty being paid by the Nestle affiliates in similar countries. The royalty rate on exports will now be aligned to 4.5% of sales.

M/s Amarchand and Mangaldas and Suresh A. Shroff & Co., a law firm advised on the governance process on the review.

Commenting on the decision of the Board, the Chairman and Managing Director of Nestle India, Mr. A. Helio Waszyk mentioned “This will ensure ongoing access to the entire capabilities of Nestle, the world’s leading Nutrition, Health and Wellness company having the largest Food and Nutrition R&D network globally and will enable Nestle India to continue to deliver long term sustainable profitable growth and Create Shared Value for society and its shareholders.”

Nestle likely to enter new product categories; rationalizes portfolio.

Nestle may introduce new products such as pet food and bottled water in India, says Edelweiss analyst

New Delhi: Nestle India Ltd, the local arm of one of the world’s largest packaged foods company, may introduce new products such as pet food and bottled water in India as it tries to revive growth in the domestic market, according to brokerage firm Edelweiss Securities.

Nestle, which sells Maggi noodles and Kit Kat chocolates in India, is struggling to overcome slow domestic volume growth that’s touched a decade’s low on account of urban consumers trimming their monthly expenses because of the economic slowdown. Nestle already sells pet food and bottled water widely in other markets.

Edelweiss analyst Abneesh Roy, who met Nestle’s top executives earlier last week, said in a note on Wednesday that he expects the company “to eventually enter pet foods and the water portfolio, though not in the medium term”.

Nestle will hold back on introducing new products as the company awaits a revival in urban demand that could help boost its domestic volume growth, he said. “They are still looking at reviving demand, fixing the current rate of growth before they go strong on new product launches,” Roy said. In the near term, Nestle has to ramp up rural distribution, increase its sales force, and accelerate product innovations, he said.

At the financial analysts meet, we have only stated that we are not foreclosing any options as various opportunities are being evaluated which could even include water or pet foods for example, said a company spokesperson. Additionally, Nestle through its global alliance with General Mills, which runs the world’s second largest breakfast cereal joint venture, Cereal Partners Worldwide, established a presence in India by registering its cereals or breakfast unit in 2012. Globally, the joint venture sells cereal brands such as Cheerios. Nestle is yet to start operations of the joint venture, Cereal Partners India Private Limited, in Asia’s third largest economy where companies have tried for decades to alter breakfast habits.

However, a Nestle spokesperson said the company was unable to comment on this since the JV was between Nestlé S.A. and General Mills and that the India unit was not privy to their plans. India’s slowing economy has muted growth for most consumer companies across the country. While consumers are cutting back on discretionary spending, companies are turning away from innovations. Product launches across fast-moving consumer goods categories declined by 2.5% in 2012 and by 6% in 2013, according to market researcher Nielsen India. In the fourth quarter of fiscal 2013, Nestle India had a tepid volume growth of 1% as certain brands across its confectionery, milk products and prepared dishes categories have been under pressure. Net profit in the quarter ended 31 December rose to Rs.2817.000 Millions from Rs.2789.000 Millions a year earlier. Net sales increased by 4.6% to Rs.2,2523.000 Millions. Nestle is also in the middle of rationalizing its portfolio, according to another brokerage Anand Rathi Securities. The company has withdrawn low growth and low margin products such as the 50 paise Nestle Eclairs and Nescafe Mild, the brokerage said in a note issued on 2 April. To focus the spotlight on its corporate brand, the company has launched a slew of campaigns, including its very first “corporate campaign”, signalling the changes being made by Nestle India’s new chief executive Etienne Benet. In Nestle’s latest quarterly earnings statement on 14 February, Benet indicated the company would take “tough decisions” as it moves towards building a premium portfolio with a strong focus on wellness and nutrition. “It may require bold changes, swift adaptation and tough decisions that we are ready to make, especially for evolving to a product portfolio that is more focused on premium and value-up ranges, while protecting our current business base,” Benet said. Nestle India stocks ended up 1.73% at Rs.4,919.90, while the benchmark Sensex closed at 22,343.45, down 0.07% on Monday. Nestle India has fallen 7.44% year- to-date.

NESTLE TO BUY 26 PC STAKE IN INDOCON AGRO AND ALLIED ACTIVITIES

Feb 5, 2013

(Nestle to buy 26 pc stake…)

NEW DELHI: FMCG major Nestle India today said the company has inked a pact to acquire a 26 per cent stake in Indocon Agro and Allied Activities Private Limited.

In a BSE filing, the company said it "has entered into agreement for acquiring 26 per cent minority stake in Indocon Agro and Allied Activities Pvt Ltd, engaged in milk collection business in Western India".

"This business investment will contribute to creating shared value with farmers engaged in milk," it added.

The acquisition is subject to the parties fulfilling their respective obligations, the statement said.

Apart from milk and yogurt, Nestle sells popular products like Maggi noodles, Nescafe and KitKat chocolates in India.

NESTLE INDIA FACES 'MARGINAL' IMPACT FROM ROYALTY HIKE: UBS

March 25, 2013

Shares in Nestle India fell 1 per cent after the Indian unit of Nestle Group said late on Friday it would implement a staggered increase in royalty payments of 0.2 per cent per year over the next five years to the parent company.

UBS has said the increase would reduce its earnings per share estimates for Nestle India by 1-3 per cent in calendar years 2014-2016, calling the impact "marginal".

Nestle India can offset its royalty payments with a favourable portfolio mix that saves on raw material costs and by gaining scale efficiencies, the investment bank added.

UBS has maintained its positive outlook on the stock, with a 'buy' rating and a target price of Rs. 5,750, citing expectations for volume growth.

NESTLE BOARD APPROVES HIKE IN ROYALTY PAYMENT TO PARENT FIRM

New Delhi   March 23, 2013  

FMCG major Nestle India's board has approved an increase in royalty payment by 0.20 per cent per year for the next five years to its parent firm, thereby enhancing it to 4.5 per cent of the sales.

Nestle SA had asked two years ago for a review of the two decades old royalty rates.

The Board of Directors of Nestle India negotiated and Nestle SA accepted the increase in royalty from 3.5 per cent to 4.5 per cent of sales in a staggered manner by making an increase of 0.20 per cent per annum over the next five years effective January 1, 2014, Nestle India said in a statement.

"This will ensure ongoing access to the entire capabilities of Nestle...and will enable Nestle India to continue to deliver long-term sustainable profitable growth and Create Shared Value for society and its shareholders," Nestle India Chairman and Managing Director A Helio Waszyk said.

MUST READ: Tips to invest in an MNC's India arm amid royalty woes

Nestle India has a General Licence Agreement (GLA) that allows it access to Nestle Group's intellectual property rights including global portfolio of brands, proprietary science and technology including over 1,300 patents, extensive research and development capabilities.

The GLA includes access to over 6,000 brands such as Nestle, Maggi and Nescafe and technologies developed by the global network of 32 research and development centres, including the one recently inaugurated at Manesar, Haryana.

Nestle India's recent capacity investments of around Rs 3,000 crore have benefited from this, the company said. It said Amarchand and Mangaldas and Suresh A Shroff & Co, a law firm advised on the governance process on the review.

Shares of Nestle India on Friday closed at Rs 4,730.10 apiece on the Bombay Stock Exchange, down 0.49 per cent from its previous close.

102 COMPANIES FROM NORTH INDIA IN DUN AND BRADSTREET'S TOP 500 FIRMS OF INDIA

New Delhi:

More than 100 companies such as Apollo Tyres, Eicher Motors, Cairn India and Nestle India from Northern India figure in the 14th edition of Dun & Bradstreet's 'India's Top 500 Companies' report.

As many as 102 companies based in North India have found a place in the Dun and Bradstreet report.

The report profiles India's most well-respected and high performing companies on the basis of various financial parameters, Dun and Bradstreet said in a statement.

"The ranking is done on the basis of various parameters such as total income, net profit and net worth. It includes both private sector companies as well as public sector enterprises (PSEs) that are listed on stock exchanges," it added.

According to the report, 288 companies featuring in India's Top 500 companies contribute 20 per cent to total GDP and account for more than 10 per cent of India's total employment in organised sector.

Moreover, 33 companies from West Bengal have made their way to the report.

NESTLE INDIA SHARES FALL ON GROSS MARGINS CONCERNS

Fri Aug 8, 2014

Shares of Nestle India Limited (NEST.NS) fall 1.5 percent after April-June margins disappoint.

Nestle India's gross margins slip 2.4 percentage points to 52.4 percent from a year earlier due to higher input costs, IDFC says in a report.

IDFC calls it the highest gross margin decline in at least 16 quarters.

ETIENNE BENET TO TAKE OVER AS NESTLE INDIA MANAGING DIRECTOR

May 24, 2013

New Delhi:

FMCG major Nestle India today said Etienne Benet would take over as the managing director of the company with effect from October 1, 2013, replacing Antonio Helio Waszyk from the post.

Benet is currently the chief executive officer of Nestle Central and West Africa Region, Nestle India said in a filing to the BSE.

"Antonio Helio Waszyk, chairman and managing director, shall step down from the position of managing director with effect from October 1, 2013, to take up a new assignment within the Nestle Group," it added.

He would continue to be the non-executive chairman of the company, Nestle India said.

Apart from milk and yoghurt, Nestle sells popular products like Maggi noodles, Nescafe and KitKat chocolates in India. It employs around 7,000 people in the country and its products are sold in 40 lakh outlets.

Shares of Nestle India were trading at Rs. 5,240.05 on the BSE in late afternoon trade, down 0.56 per cent from their previous close.

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 Assessmentfocuses 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.61.16
UK Pound	1	Rs.98.62
Euro	1	Rs.77.67

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		77

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.