MIRA INFORM REPORT

Report Date :

07.06.2007

IDENTIFICATION DETAILS

Name :	AMRUT DISTILLERIES LIMTED
Registered Office :	36, Sampangi Tank Road, Banglore-560027, Karnataka.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.09.1972
Com. Reg. No.:	8-2246
CIN No.: [Company Identification No.]	U51101KA1972PLC002246
TAN No.: [Tax Deduction & Collection Account No.]	BLRA01613D
Legal Form :	A closely held public limited company.
Line of Business :	Manufacture of Indian made foreign liquors like Dark Rum, Brandy and Whisky, Brands Include Single Malt, Maqintosh, Old Port, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 920000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Their trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions

LOCATIONS

Registered Office / Factory 1 :	36, Sampangi Tank Road, Banglore-560027, Karnataka, India
Tel. No.:	91-80-22221987/ 22221988/ 222219889/ 22235078
Fax No.:	91-80-22278512
E-Mail :	nrjserch@bgl.vsnl.net.in
Website :	http://www.amrutdistilleries.com
Area :	Owned 200000 sq. fts.
Factory 2 :	Kambipura, Bangalore – 560074
Area :	Owned – 5 acres (built-up about 100000 sq. fts)
Factory 3 :	Pambanpallam, Palakkad District, Kerala
Area :	Owned – 2 acres (built-up about 50000 sq. fts)
Factory 4 :	Patiala, Punjab
Area :	Owned – 5 acres (built-up about 100000 sq. fts)
Factory 5 :	Bareily Uttar Pradesh
Factory 6 :	Tinsukia, Assa
Branches :	Delhi and Mumbai

DIRECTORS

Name :	Mr. Neelakanta Rao Radhakrishna Jagdale
Designation :	Manging Director
Address :	Saraswati No. 41 and 42, Shankar Mutt Road, Shankarapuram, Bangalore – 560004, Karnataka, India
Date of Birth/Age :	25.11.1952
Date of Appointment :	31.05.1984
Name :	Mr. Nagaraja Rao Radhakrishna Jagdale
Designation :	Director
Address :	Sumeru No. 39/23, 29^th Cross, 7^th Block, Jayanagar, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	07.10.1950
Date of Appointment :	25.01.1996
Name :	Mr. Lakshmanan Pandarathil Bhaskaran
Designation :	Whole Time Director
Address :	1026, 7^th Main, 2^nd Cross, Rajarajeshwari Nagar, BEML Co-Operative Housing, Bangalore – 560089, Karnataka, India
Date of Birth/Age	01.01.1951
Date of Appointment :	04.08.1997
Name :	Mr. Rakshit Neelkanta Rao Jagadale
Designation :	Whole Time Director
Address :	Saraswati No. 41 and 42, Shankar Mutt Road, Shankarapuram, Bangalore – 560004, Karnataka, India
Date of Birth/Age	14.04.1978
Date of Appointment :	01.06.1999
Name :	Mrs. Surekha Neelkanta Rao Jagadale
Designation :	Director
Address :	Saraswati No. 41 and 42, Shankar Mutt Road, Shankarapuram, Bangalore – 560004, Karnataka, India
Date of Birth/Age :	09.09.1957
Date of Appointment :	18.12.1992
Name :	Mr. Meyyappan Muthuraman
Designation :	Whole Time Director
Address :	168, 5^th Cross, St. BED Area, Koramangala, IV Block, Bangalore – 560034, Karnataka, India
Date of Birth/Age	25.08.1949
Date of Appointment :	04.08.1997
Name :	Mrs. Manjula Srinivasan Bhonsle
Designation :	Director
Address :	54/1, Vaibhavi, Ranga Rao Road, Shankarapuram, Bangalore – 560004, Karnataka, India
Date of Birth/Age :	07.09.1948
Date of Appointment :	14.09.0977

KEY EXECUTIVES

Name :	Mr. Vishwanathan Krishnamurthy
Designation :	Company Secretary
Address :	No. 10, 1^st C’ Main, 15^th Cross, 6^th Sector HSR Layout, Bangalore – 560034, Karnataka, India
Date of Birth/Age :	02.06.1956
Date of Appointment :	03.01.2000

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters
Mr. Neelakanta Rao Radhakrishna Jagdale	13638	68.19
Mrs. Surekha Neelkanta Rao Jagadale	6362	31.81
Total	20000	100

BUSINESS DETAILS

Line of Business :	Manufacture of Indian made foreign liguors like Dark Rum, Brandy and Whisky, Brands Include Single Malt, Maqintosh, Old Port, etc.
Products :	¡ Whisky ¡ Rum ¡ Brandy
Exports to :	UK/Europe and UAE / Middle East /Gulf
Imports from :	UK/ Europe, USA
Terms :
Selling :	L/C
Purchasing :	L/C at sight and up to 45 days credit Local : 60 days credit

PRODUCTION STATUS

Particulars	Unit	Actual Production
IML	KL	16459
Grape Spirit	KL	54
Neutral Spirit (Distilled)	KL	3611
Malt Spirit (Distilled)	KL	96
Head Spirit	KL	306

GENERAL INFORMATION

Suppliers :	United Glass, UK Peter of Russel, UK
Customers :	Kerala State Beverages Corporation, Trivandrum Karnataka State Beverages Corporation, Bangalore Defence Canteen Stores
No. of Employees :	Total :500 -- Office /Other : 100 and Production : 400
Bankers :	¡ Canara Bank Industrial Finance Branch, Richmond Road, Bangalore 560025 ¡ Canara Bank Cantonment Branch, Thiruvananthapura
Facilities :	Secured as on 31^st March 2003, Cash Credit Rs 190.196 millions.

Banking Relations :	Satisfactory
Auditors :
Name :	V. N. G. Nath Associates Chartered Accountant
Address :	No. 18, SBI Officer’s Colony, Basaveshwara Nagar, Bangalore – 560079, Karnataka, India
Group Company :	Jagdale Group: Juggat Pharma Private Limited Jagadale Exports Jagadale Foods Private Limited Jagadale Scientific Research Foundation Jagadale Farms Associated Drugs Company Private Limited Rewdeli Precision tools Private Limited Teknimark Jagadali and Sons Search Foundation Jagadale Sons Horicultural Farm Associated Drugs Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity shares	Rs. 1000/- each	Rs. 20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity shares	Rs. 1000/- each	Rs. 20.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		20.000	20.000
3] Reserves & Surplus		209.792	195.979
NETWORTH		229.792	215.979
LOAN FUNDS
1] Secured Loans		243.411	261.374
2] Unsecured Loans		1.000	1.000
TOTAL BORROWING		244.411	262.374
TOTAL		474.203	478.353
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.304	51.835
Capital work-in-progress		0.000	0.000
INVESTMENT		0.109	0.309
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	103.759	111.509
	Sundry Debtors	163.774	121.598
	Cash & Bank Balances	173.876	159.769
	Loans & Advances	86.168	128.806
Total Current Assets		527.577	521.684
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	81.610	42.731
	Provisions	22.177	52.742
Total Current Liabilities		103.787	95.473
Net Current Assets		423.790	426.209
TOTAL		474.203	478.353

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006 (Estimated)	31.03.2005 (Estimated
Sales Turnover [including other income]	500.000	400.000

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005
Debt Equity Ratio (Total Liability/Networth)	2.51	2.65
Current Ratio (Current Asset/Current Liability)	5.08	5.46

LOCAL AGENCY FURTHER INFORMATION

History

14^th September 1972, as a private limited company and took over the partnership firm, became deemed public limited company from 30^th September 1998.

Imports raw materials for own use and occasionally exports part of production.

Subject has absorbed technology from M/s. Slues International, Belgium.

FORM 8

Name of the company	AMRUT DISTILLERIES LIMTED
Presented By	Canara Bank, N R Road, Bangalore – 560002, Karnataka, India
1) Date and description of instrument creating the change	Supply bill agreement dated 11.12.1987
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Supply bills accompanied by receipted challans arising out of credit sales to Government / Semi Government Departments, Joint Stocks Companies and Canteen Stores Departments.
4) Gist of the terms and conditions and extent and operation of the charge.	Margin – 10% Bills not to outstand beyond 45 days Interest @ 7.50% p.a. above RBI with a minimum of 17.50% p.a. or other rates that may be stipulated by bank fro time to time.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, N R Road, Bangalore – 560002, Karnataka, India
6) Date and brief description of instrument modifying the charge	N A
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N A

As Per Web :

Introduction

Subject, the Liquor segment of the prestigious Bangalore-based Jagdale Group, produces some of the finest Whiskeys, Brandies and Rum in India. One of the pioneers of the Liquor industry in India, ADL's product line includes several premium liquors all of which are the toast of connoisseurs.

Amrut Single Malt, the first single malt whisky to be made in India, the award-winning MaQintosh Premium Malt Whisky, MaQ Scotch Whisky and Bejois Napoleon Brandy occupy the pride of place in ADL's stable of celebrated products.

Established way back in 1948, ADL has grown out of its locale in Karnataka to an acknowledged all-India presence. The imminent launch of its Single Malt, christened Amrut Single Malt - ASM for short- in Glasgow marks ADL's another milestone in its quest for recognition for quality.

Painstaking selection of malt and grapes, rigid control over quality of Alcohol, one of the finest maturation facilities in India with carefully controlled ambience, master blenders to whom liquor is more of a love affair than a job - these are the factors that have turned ADL into a producer of quality liquors.

Profile

Subject belongs to the Jagdale Group, itself one of the oldest industrial groups of India based in the South Indian town of Bangalore (more popularly known as the silicon valley of India). Founded by the late Mr. Radhakrishna Jagdale in 1948, the group initially started as a small liquor blending and bottling unit.

The pioneering spirit and enterprise of Mr. Jagdale saw the group quickly diversify into Food Processing, Bulk Drugs, Pharmaceuticals, Nutrition Supplements for sportsmen and animals, manufacture of high-precision engineering instruments, IT Enabled services, etc. Turnover and Asset base leapfrogged till now when it is established firmly as a leading industrial house of the State.

Currently, the group aggregates over Rs. 3000 million in turnover, Rs. 2000 million in Asset base and 1300 in manpower. More importantly, over the decades, the group has acquired a name for reliability, corporate honesty and as caring and much sought-after employers.

ADL is headed by Mr. Neelakanta Rao Jagdale, who has, over the past three decades, has shown himself as an astute manager, a connoisseur of liquors and a man with an uncanny feel for the market demands.

The entire management team has been associated with the company from its infancy.

Products Range

Whisky

¡ Single Malt Whisky

¡ MaQintosh Whisky

¡ Prestige Whisky

Rum

¡ Old Port Deluxe Matured Rum

¡ Old Port Deluxe White Rum

¡ Old Port XXX Rum

¡ Amrut White Rum

Brandy

¡ Bejois Napolean Brandy

¡ Bejois Brandy

Company Contact

36, Sampangi Tank Road,
Bangalore 560027, India.

Tel. No.: 91 80-2221987 (3 lines)

Telex: 0845-3292 "AMRIT IN"

Fax No.: 91-80-2278512

Email : nrjsearch@bgl.nsnl.net.in

U K Media Contact

Ms. Fiona Laing  

Email : flaing_pr@onetel.com

Tel. No.: +44 (0) 794 665 4451

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 records 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. 40.98
UK Pound	1	Rs. 80.98
Euro	1	Rs. 54.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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