MIRA INFORM REPORT

Report Date :

11.09.2007

IDENTIFICATION DETAILS

Name :	MOTHER DAIRY UNIT OF GUJARAT COOPERATIVE MILK MARKETING FEDERATION LIMITED
Registered Office :	Amul Dairy Road, Post Box No. 10, Anand – 388001, Gujarat
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	1973
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00866F
PAN No.: [Permanent Account No.]	AAACG7189H
Legal Form :	A Cooperative Society registered under the Cooperative Society’s Act in the year 1973.
Line of Business :	Sole marketer of the original range of Amul Products including milk powder and butter.

RATING & COMMENTS

MIRA’s Rating :

Aa

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 170000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established and reputed society having excellent brand image and track. Available information indicates high financial responsibility of the society. Trade relations are fair. Payments are always correct and as per commitments. The society can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office :	Amul Dairy Road, Post Box No 10, Anand – 388001, Gujarat, India
Tel. No.:	91-2692-258506/ 258507/ 258508/ 258509
Fax No.:	91-2692-240208
E-Mail :	gcmmf@amul.com
Website :	http://www.amul.com

DIRECTORS

Name :	Mr. Ramsinhbhai P. Parmar
Designation :	Director
Name :	Mr. Jethabhai P. Patel
Designation :	Director
Name :	Mr. Ajitsinh R. Thakor
Designation :	Director
Name :	Mr. Bhupendrasinh P. Solanki
Designation :	Director
Name :	Mr. Govindbhai S. Ranpariya
Designation :	Director
Name :	Mr. Sardarsinh K. Desa1
Designation :	Director
Name :	Mr. Vipulbha1 M. Chaudhary
Designation :	Director
Name :	Mr. Parthibhai G. Bhatol
Designation :	Director
Name :	Mr. Manubhal A. Patel
Designation :	Director
Name :	Mr. Mohanbhai R. Bharwad
Designation :	Director
Name :	Mr. Moghabhai M. Desai
Designation :	Director
Name :	Mr. Babuji U. Thakor
Designation :	Director
Name :	Mr. Babuji U. Thakor
Designation :	Director
Name :	Mr. Babuji U. Thakor
Designation :	Director

BUSINESS DETAILS

Line of Business :	Sole marketer of the original range of Amul Products including milk powder and butter.
Products :	v Milk v Milk Powder v Health Beverages v Ghee v Butter v Cheese v Pizza Cheese v Ice Cream v Paneer Chocolate v Traditional Indian Sweets v Edible Oils. v Bread Spreads v Mithaee v Infant Milk v Sweetened condensed Milk v Curd products v Chocolate and Confectionery Brown Beverage
Brand Names :	v Sagar v Dhara
Exports :
Products:	Bulk Packs: v Amul Skimmed Milk Powder v Full Cream Milk Powder Consumer Packs: v Amul Pure Ghee v Butter v Shrikhand v Mithaee Gulabjamun v Infant Milk Food v Cheese v UHT Milk (Liong Life) v Fresh Cream v Nutramul Brown Beverage
Countries:	USA, Gulf Countries, Singapore

GENERAL INFORMATION

Bankers :	v State Bank of India, Anand v State Bank of Saurashtra, Anand v Bank of Baroda, v State Bank of India, Kaira District Central v Co-Operative Bank Limited
Facilities :	Secured Loan From Banks – Overdrafts against Fixed Deposit – Rs. 78.891 Millions

Banking Relations :	Good
Auditors :
Name :	S. R. Batliboi & Company Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		400.000	400.000	400.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		462.520	438.100	416.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		862.520	838.100	816.800
LOAN FUNDS
1] Secured Loans		78.891	73.800	168.000
2] Unsecured Loans		0.000	675.500	0.000
TOTAL BORROWING		78.891	749.300	168.000
DEFERRED TAX LIABILITIES		41.397	0.000	0.000
TOTAL		982.808	1587.400	984.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1286.197	1116.700	1015.300
Capital work-in-progress		0.000	0.000	21.200
INVESTMENT		7.291	3.300	3.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2270.092	1268.500	2001.800
	Sundry Debtors	265.781	195.000	322.100
	Cash & Bank Balances	803.758	672.100	729.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	113.681	658.100	173.700
Total Current Assets		3453.312	2793.700	3227.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3639.083	2030.000	3203.300
	Provisions	124.909	296.300	79.100
Total Current Liabilities		3763.992	2326.300	3282.400
Net Current Assets		(310.680)	467.400	(55.000)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		982.808	1587.400	984.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	29209.972	27667.700	23807.100
Profit/(Loss) Before Tax	76.120	164.500	93.000
Provision for Taxation	0.000	51.100	25.000
Profit/(Loss) After Tax	76.120	113.400	68.000
Total Expenditure	29200.182	27310.500	23486.400

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio		0.49	0.55	0.53
Long Term Debt Equity Ratio		0.00	0.45	0.34
Current Ratio		0.90	1.04	0.99
TURNOVER RATIOS
Fixed Assets		11.05	10.97	10.02
Inventory		16.60	17.33	12.15
Debtors		127.48	109.60	76.47
Interest Cover Ratio		8.09	8.28	2.63
Operating Profit Margin	(%)	1.14	1.26	1.36
Profit Before Interest and Tax Margin	(%)	0.56	0.66	0.64
Cash Profit Margin	(%)	0.84	1.00	1.01
Adjusted Net Profit Margin	(%)	0.26	0.40	0.29
Return on Capital Employed	(%)	12.92	14.55	12.88
Return on Net Worth	(%)	8.95	13.70	8.92

LOCAL AGENCY FURTHER INFORMATION

Mother Dairy is a unit of Gujarat Cooperative Milk Marketing Federation Limited, having Asia's largest fully automated Milk and Milk Product manufacturing facilities spread in more than 70acres of land, popularly known for the brands of "MOTHER DAIRY", "AMUL" and "SAGAR".

SALES

During the year, the Federation's sales registered a growth of 1.4 per cent to reach Rs. 29225.300 Millions (Rs. 29.22 billion) including consignment sales of Rs. 15.300 Millions (Rs. 0.02 billion). This lower than expected overall growth was owing firstly to low procurement of milk during the first half of the year, and secondly to unfavourable commodity market prices when procurement normalized. Commodities—to achieve power in the market. Thus, the dairy line in consumer packs grew by 11.8 per cent during the year. Sales of Amul Milk in pouches increased by 36 per cent in value terms. A notable development in the area of liquid milk in pouches has been the successful launch of Amul Milk in the Kolkata market during December 2004- UHT Milk has grown in value terms by 23 per cent. Amul Ice cream achieved a sales value growth of 10 per cent, and has strengthened its position as the undisputed market leader. Despite intense competition, sales value of Amul Butter grew by 4-5 per cent. The sales of the Amul Cheese range increased by 21 per cent. Products like Flavoured Milk, Amul Fresh Cream, Paneer, Mithaimate, Softy Mix and fresh curd demonstrated their potential to become dominant brands in the coming few years. They have launched a promising new product called Amul Masti Spiced Buttermilk during the year.

POUCH MILK

Amul pouch milk has become the largest contributor to their turnover with annual sales of about Rs. 6260.000 Millions (Rs. 6.26 billion) during 2004-2005 as against Rs. 4620.000 Millions (Rs. 4.62 billion) during the previous year implying a growth of about 36 per cent. During last year they had surveyed major markets for exploring possibility of opening new markets. Taking into consideration their strong brand equity, experience of milk marketing and their association with milk in the consumer's mind, they are planning to open several new markets and will focus on distribution expansion in the existing metro markets.

Website details attached:

HISTORY

The first AMUL cooperative was the result of a farmers' meeting in Samarkha (Kaira district, Gujarat) on 4^th January 1946, called by Morarji Desai under the advice of Sardar Vallabhbhai Patel. Dairy farmers in Kaira district in Gujarat organized into a union of cooperatives to counter "exploitive low" price offered for their milk by middleman/private milk processors. It had inspiration from the leaders of India. Eminent leaders like Sardar Vallabh Bhai Patel, Shri Morarji Desai, Shri Tribhuvandas Patel and Shri Lal Bahadur Shastri provided vision and inspiration.

The decision was taken that day in January 1946: Milk producers' cooperatives in villages, federated into a district union, and should alone handle the sale of milk from Kaira to the government-run Bombay Milk Scheme. This was the origin of the Anand pattern of cooperatives. The colonial government refused to deal with the cooperative. The farmers called a milk strike. After fifteen days the government capitulated. This was the beginning of Kaira District Cooperative Milk Producers' Union Limited, Anand, registered

on 14 December 1946.

Gujarat's milk unions banded together in 1973 to form the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF). GCMMF was established as a state level apex marketing organization to market its dairy cooperatives' products under a single brand name "AMUL". GCMMF became the sole marketer of the original range of AMUL products including milk powder and butter.

BUSINESS

Subject is India's largest food company with turnover of more than Rs.23000.000 Millions. It is exclusive marketer of AMUL, Sagar and Dhara branded products. Its products range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice cream, Paneer chocolate, traditional Indian sweets and edible oils. Subject cannot be viewed only as a business organization, it is an institution created by the milk producers to primarily safeguard their interest economically, socially as well as democratically. (While business houses create profit and distribute profits to the share holders, in case of GCMMF its profits are ploughed back opt the framers through the unions as well as village societies and this circulation to the capital with value addition within the structure with the final beneficiary being the rural framer eventually contributes to the development not only of the farmers but of the village community).

List of Products Marketed:

Breadspreads:

v Amul Butter

v Amul Lite Low Fat Breadspread

v Amul Cooking Butter

Cheese Range:

v Amul Pasteurized Processed Cheddar Cheese

v Amul Processed Cheese Spread

v Amul Pizza (Mozarella) Cheese

v Amul Shredded Pizza Cheese

v Amul Emmental Cheese

v Amul Gouda Cheese

v Amul Malai Paneer (cottage cheese), Frozen, Refrigerated and Tinned

v Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

v Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

v Amul Amrakhand

v Amul Mithaee Gulabjamuns

v Amul Mithaee Gulabjamun Mix

v Amul Mithaee Kulfi Mix

v Avsar Ladoos

UHT Milk Range:

v Amul Shakti 3% fat Milk

v Amul Taaza 1.5% fat Milk

v Amul Gold 4.5% fat Milk

v Amul Lite Slim-n-Trim Milk 0% fat milk

v Amul Shakti Toned Milk

v Amul Fresh Cream

v Amul Snowcap Softy Mix

Pure Ghee:

v Amul Pure Ghee

v Sagar Pure Ghee

v Amul Cow Ghee

Infant Milk Range:

v Amul Infant Milk Formula 1 (0-6 months)

v Amul Infant Milk Formula 2 ( 6 months above)

v Amulspray Infant Milk Food

Milk Powders:

v Amul Full Cream Milk Powder

v Amulya Dairy Whitener

v Sagar Skimmed Milk Powder

v Sagar Tea and Coffee Whitener

v Sweetened Condensed Milk:

v Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

v Amul Taaza Toned Milk 3% fat

v Amul Gold Full Cream Milk 6% fat

v Amul Shakti Standardised Milk 4.5% fat

v Amul Slim & Trim Double Toned Milk 1.5% fat

v Amul Saathi Skimmed Milk 0% fat

v Amul Cow Milk

Curd Products:

v Yogi Sweetened Flavoured Dahi (Dessert)

v Amul Masti Dahi (fresh curd)

v Amul Masti Spiced Butter Milk

v Amul Lassee

Amul Icecreams:

v Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)

v Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)

v Utsav Range (Anjir, Roasted Almond)

v Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose, Chocolate)

v Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)

v Sundae Range (Mango, Black Currant, Chocolate, Strawberry)

v Millennium Icecream (Cheese with Almonds, Dates with Honey)

v Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)

v Cool Candies (Orange, Mango)

v Cassatta

v Tricone Cones (Butterscotch, Chocolate)

v Megabite Almond Cone

v Frostik - 3 layer chocolate Bar

v Fundoo Range - exclusively for kids

v SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango, Pineapple)

v Health : Isabcool

Chocolate & Confectionery:

v Amul Milk Chocolate

v Amul Fruit & Nut Chocolate

v Brown Beverage:

v Nutramul Malted Milk Food

Milk Drink:

v Amul Kool Flavoured Milk

Health Beverage:

v Amul Shakti White Milk Food

Ready to Serve Soups:

v Masti Tomato Soup

v Masti Hot & Sour Soup

Members' Development:

To educate and train male & female members of their Cooperatives they conduct Cooperative development programmes at the village level. The various programmes

Implemented at village level are as follows:

v Women Education Programme

v Member Education Programme

v Members' Business development Programme

v Managing' Business development Programme

v Managing Committee Member Training

v Leadership Development Programme

v VDCS Staff Orientation Programme

v MILK Day Programme

v Women Awareness Programme

v Women Leadership Development Programme

v School programmes

v BOD orientation Programme

v Special campaign Programme for private traders

v Special boards of directors' workshop

The major achievements of the programme are as follows:

v Increased awareness among members reflected though

v Democratic Governance

v Regular elections

v Regular management committee/board meetings

v Regular audit of societies

v Open & Voluntary Membership

v Increase in membership

v Increase in pourer members

v Increase in Women membership

v Women Empowerment

v Increase in Women Management committee member

v Increase in Women Dairy Cooperative Societies

v Increase in no. of Women Board of Directors

v Adoption of new technology to improve Quality of milk production & processing

v Milk-testers - Milk Quality Improvement

v Pucca society house - Environment

v Pucca cattle shed - environment Improvement

v Automatic Milk Collection Station - Milk Quality Improvement

v Computerization of milk collection 0 Milk Quality Improvement

v Village Bulk Chilling Unit - Milk Quality Improvement

v Bulk coolers- Milk quality Improvement

Over and above this, pursuing to their effort sin implementation of Total Quality Management (TQM) at all levels, they have also started Village Self-leadership Development Programme through Internal Consultant Development (ICD) intervention for addressing the needs of Primary members & Dairy Co-operative Societies through development of internal consultants at the village level and implementing need based modules for development of the villages through these internal consultants,.

The major objectives of the intervention pare as follows:

v To improve quality, hygiene & productivity at all level

v To implement the concepts of TQM to the primary producers

v To develop social security measures

v To improve health care of animal

v To take Co-operative Development to the next level

v To develop self-leadership at society level

v To facilitate continuous & speedy flow of information at all levels

v To take the relationship between Producer & Society beyond economics

PRESS RELEASES:

Amul posts marginal topline growth, trebles its exports

Sindhu J. Bhattacharya

New Delhi, June 28 2007

LAST fiscal, the Gujarat Co-operative Milk Marketing Federation (GCMMF) became the first Indian dairy products company to treble its export sales to Rs 1150 Millions. However, the federation's topline grew just 1.4 per cent in 2004-05 to reach Rs 29225.300 Millions.

The federation's Chairman, Dr V. Kurien, said the lower-than-expected topline growth was due to lower milk procurement during the first half of the year and unfavourable commodity market prices.

However, GCMMF's (which markets the Amul brand of products) consumer packs performed well during the year under review to record a 12-per cent growth.

"I am pleased to note the federation has done remarkably well in most of the consumer packs. A co-operative must increasingly rely on branded products - rather than commodities - to achieve power in the market," Dr Kurien said in the federation's latest Annual Report.

Despite lower procurement during the first half of the last fiscal, total milk procurement by the member unions of GCMMF grew 15.2 per cent to average 58.89 lakh kg per day.

Leading the sales growth of GCMMF's consumer packs business, Amul Milk in pouches registered 36 per cent in value terms. Sales of Amul Ultra Heat Treatment Milk were up 23 per cent. Amul ice-cream sales were up 10 per cent and Amul Butter 4.5 per cent.

With sales of Rs 6260 Millions, Amul Milk in pouches became the largest contributor to GCMMF's turnover last fiscal. To further strengthen its milk business, the federation has decided to enter several new markets with this product in the current year.

The federation also succeeded in establishing its distribution network in small town’s last fiscal, by adding 900 distributors.

"This initiative has already started yielding results, in the form of increasing availability of our products in small towns and thereby generating additional business," Dr Kurien said.

Cover Story

The Amul twist

RS Sodhi, General Manager (Marketing), GCMMF, in conversation with Shuchi Srivastava, explains Amul’s retailing plans and expansion strategies The Gujarat Cooperative Milk Marketing Federation (GCMMF) has achieved 18 per cent growth during 2003-04 to close the year with a Rs 28820.000 Millions turnover, so it has been an enthusiastic year for Amul

Their March closing was exceptionally good as an overall growth was witnessed across all their dairy products.

What percentage of this growth would you attribute to business garnered from the organised retail segment in India?

As far as GCCMF is concerned, the contribution from the organised retail segment would be negligible, say about 2-3 per cent. Except for a few cities like Hyderabad and Bangalore, the actual penetration of the organised retail segment is not really significant in other parts of India.

But what about the fact that the distribution of the products is carried out through a network of 4,000 Stockists who, in turn, supply to 500,000 retail outlets?

These outlets would not fall in the organised segment but rather in the traditional unorganized one.

You have recently introduced new processes where you plan to launch new products, or re-launch old ones every Thursday of the week? Don’t you think such an increase in the product portfolio would be enhanced if these new products are present in organised retail formats?

Yes, the opportunity is immense but as I said earlier, due to the lack of an established market presence, such formats are not really high on their list of priorities. It would make much more sense to liase with local selfowned supermarkets who have all the amenities of an organised retail format. There is no special strategy to specifically target the organised segment. This does not mean that they don’t figure on their list at all; they do, but just as any other category.

Are the products accorded any special treatment in terms of packaging, labeling or other areas when sent to organised retail formats?

No, none at all they have the same range of products across all categories.

Given that there has been a shift towards branded food products, across urban markets, why has their sale through organized retail formats not taken off?

Clearly because there is no significant cost advantage offered to consumers in order to lure them away from the comfort of their local mom-andpop stores. At the latter option, one may still find a definite price advantage that is instrumental in cementing a long-lasting relationship with the customer. An inviting ambience is an experience that organised retail formats offer but gradually this advantage too is losing its edge as the smalltime, so-called unorganized retailer is also waking up to the fact.

GCMMF exports set to top Rs 1250.000 Millions

Their Regional Bureau / Ahmedabad March 18, 2005

Dairy exports of the Gujarat Cooperative Milk Marketing Federation (GCMMF) are set to cross Rs 1250.000 Millions by the end of the current financial year. This accounts for over 55 per cent of the country’s total dairy exports of Rs 2250.000 Millions.

The Rs 30000.000 Millions GCMMF’s export had fallen to Rs 440.000 Millions in financial year 2003-2004, as compared with exports of Rs 780.000 Millions in the previous year due to the acute shortage of milk in the country.

The co-operatives major have already crossed Rs 1000.000 Millions of dairy exports, and plans to close the current financial year with a exports in excess of Rs 1250.000 Millions.

It also hopes to achieve a 50 per cent growth in the next financial year over the current financial year’s numbers on account of the increased international demand.

“They are prepared for the post-quota scenario by investing in various cost reduction and quality control measures. Skimmed milk powder accounted for over 70 per cent of their overall exports. Their new product, ultra heat treated milk, has been well accepted in the international markets along with their cheese, ice-cream, full cream milk powder, gulab jamuns, shrikhand,” R S Sodhi, chief general manager, GCMMF, said.

The co-operative exports to countries like the Middle East, Singapore, Sri Lanka, Hong Kong, Philippines, Combodia amongst others. It exported its products to Algeria, Afghanistan and various other African countries for the first time in the current year.

“Amul Sleak has helped us cut down on production costs. However, India’s import duty on milk — at around 40 per cent — is very low compared with the subsidy offered to 65 per cent subsidies offered to dairies in Europe and the US. Thus, there is a need to hike import duty on milk and milk products,” said BM Vyas, managing director, GCMMF.

Innovative use of technology and proper resource management can help the industry achieve export competitiveness in terms of price, yield and quality, said Vyas.

“They can successfully meet the challenges and harness new opportunities if they adopt the latest technology for processing, packaging and marketing of milk and milk products. They need to organize milk producers and professionally manage their workings,” he added.

India is the biggest producer of milk in the world with an output of over 90 million tonnes.

But productivity has remained low at 990 kg per lactation per year, compared with the world average of 2,030.

AWARDS:

Ramkrishna Bajaj National Qality Award-2003

The Gujarat Co-operative Milk Marketing Federation Limited has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award - 2003. The Certificate of Merit was presented at a glittering ceremony held at Mumbai on March 11 by the Governor of the Reserve Bank of India, Dr. Y. V. Reddy.

According to Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once again reiterated GCMMF's commitment to quality and excellence. The biggest strength of GCMMF is the trust it has created in the minds of consumers regarding the quality of its products. GCMMF and its brand Amul stand for guaranteed purity for whatever products it produces, he added.

GCMMF has bagged this award for adopting noteworthy quality management practices for logistics and procurement. Over the years, it has established an efficient supply chain that penetrates even the remotest corners of the country. The information systems of the Federation are comprehensive and include details on product quality, delivery performance, supplier quality, disaster recovery and all essential commercial areas, the citation reads.

The Ramakrishna Bajaj National Quality Award is based on framework and principles almost similar to the Malcolm Baldrige Award that is given by the President of the United States to businesses - manufacturing and service, small and large - and to education and healthcare organizations that apply and are judged to be outstanding in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.

Mr. B M Vyas receives the Qimpro Gold Standard Award
 
Qimpro Platinum Standard, the highest individual honour, has in recent years been awarded to Chandra Mohan, Aditya Birla, Deepak Parekh, F C Kohli, Dr J J Irani, Azim Premji, and Kumar Mangalam Birla. Qimpro Awards are recognized by the ASQ and the Institute of Quality Assurance, UK

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money

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. 40.58
UK Pound	1	Rs. 82.22
Euro	1	Rs. 55.97

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--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
TOTAL		81

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.	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